Bank Liquidity Creation And Financial Crises
DOWNLOAD
Download Bank Liquidity Creation And Financial Crises PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Bank Liquidity Creation And Financial Crises book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Bank Liquidity Creation And Financial Crises
DOWNLOAD
Author : Allen N. Berger
language : en
Publisher: Academic Press
Release Date : 2015-11-24
Bank Liquidity Creation And Financial Crises written by Allen N. Berger and has been published by Academic Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-11-24 with Business & Economics categories.
Bank Liquidity Creation and Financial Crises delivers a consistent, logical presentation of bank liquidity creation and addresses questions of research and policy interest that can be easily understood by readers with no advanced or specialized industry knowledge. Authors Allen Berger and Christa Bouwman examine ways to measure bank liquidity creation, how much liquidity banks create in different countries, the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, the effects of bailouts, and much more. They also analyze bank liquidity creation in the US over the past three decades during both normal times and financial crises. Narrowing the gap between the "academic world" (focused on theories) and the "practitioner world" (dedicated to solving real-world problems), this book is a helpful new tool for evaluating a bank’s performance over time and comparing it to its peer group. Explains that bank liquidity creation is a more comprehensive measure of a bank’s output than traditional measures and can also be used to measure bank liquidity Describes how high levels of bank liquidity creation may cause or predict future financial crises Addresses questions of research and policy interest related to bank liquidity creation around the world and provides links to websites with data and other materials to address these questions Includes such hot-button topics as the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, and the effects of bailouts
Bank Liquidity Creation And Financial Crises
DOWNLOAD
Author : Allen Berger
language : en
Publisher: Academic Press
Release Date : 2015-08-01
Bank Liquidity Creation And Financial Crises written by Allen Berger and has been published by Academic Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-08-01 with Business & Economics categories.
Bank Liquidity Creation and Financial Crises delivers a consistent, logical presentation of bank liquidity creation and addresses questions of research and policy interest that can be easily understood by readers with no advanced or specialized industry knowledge. Authors Allen Berger and Christa Bouwman examine ways to measure bank liquidity creation, how much liquidity banks create in different countries, the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, the effects of bailouts, and much more. They also analyze bank liquidity creation in the US over the past three decades during both normal times and financial crises. Narrowing the gap between the "academic world" (focused on theories) and the "practitioner world" (dedicated to solving real-world problems), this book is a helpful new tool for evaluating a bank's performance over time and comparing it to its peer group. Explains that bank liquidity creation is a more comprehensive measure of a bank's output than traditional measures and can also be used to measure bank liquidity Describes how high levels of bank liquidity creation may cause or predict future financial crises Addresses questions of research and policy interest related to bank liquidity creation around the world and provides links to websites with data and other materials to address these questions Includes such hot-button topics as the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, and the effects of bailouts
High Liquidity Creation And Bank Failures
DOWNLOAD
Author : Zuzana Fungacova
language : en
Publisher: International Monetary Fund
Release Date : 2015-05-06
High Liquidity Creation And Bank Failures written by Zuzana Fungacova and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-05-06 with Business & Economics categories.
We formulate the “High Liquidity Creation Hypothesis” (HLCH) that a proliferation in the core activity of bank liquidity creation increases failure probability. We test the HLCH in the context of Russian banking, which provides a natural field experiment due to numerous failures experienced over the past decade. Using Berger and Bouwman’s (2009) liquidity creation measures as a comprehensive proxy for overall bank output, we find that high liquidity creation significantly increases the probability of bank failure; this finding survives multiple robustness checks. Our results suggest that regulatory authorities can mitigate systemic distress and reduce the costs of bank failures to society through early identification of high liquidity creators and enhanced monitoring of their funding and investment activities.
Bank Liquidity Creation Monetary Policy And Financial Crises
DOWNLOAD
Author : Allen N. Berger
language : en
Publisher:
Release Date : 2009
Bank Liquidity Creation Monetary Policy And Financial Crises written by Allen N. Berger and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009 with categories.
High Liquidity Creation And Bank Failures
DOWNLOAD
Author : Zuzana Fungacova
language : en
Publisher: International Monetary Fund
Release Date : 2015-05-06
High Liquidity Creation And Bank Failures written by Zuzana Fungacova and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-05-06 with Business & Economics categories.
We formulate the “High Liquidity Creation Hypothesis” (HLCH) that a proliferation in the core activity of bank liquidity creation increases failure probability. We test the HLCH in the context of Russian banking, which provides a natural field experiment due to numerous failures experienced over the past decade. Using Berger and Bouwman’s (2009) liquidity creation measures as a comprehensive proxy for overall bank output, we find that high liquidity creation significantly increases the probability of bank failure; this finding survives multiple robustness checks. Our results suggest that regulatory authorities can mitigate systemic distress and reduce the costs of bank failures to society through early identification of high liquidity creators and enhanced monitoring of their funding and investment activities.
Financial Crises And Bank Liquidity Creation This Is An Old Wp That Has Been Split Into 2 Parts
DOWNLOAD
Author : Allen N. Berger
language : en
Publisher:
Release Date : 2013
Financial Crises And Bank Liquidity Creation This Is An Old Wp That Has Been Split Into 2 Parts written by Allen N. Berger and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013 with categories.
Financial crises and bank liquidity creation are often connected. We examine this connection from two perspectives. First, we examine the aggregate liquidity creation of banks before, during, and after five major financial crises in the U.S. from 1984:Q1 to 2008:Q1. We uncover numerous interesting patterns, such as a significant build-up or drop-off of quot;abnormalquot; liquidity creation before each crisis, where quot;abnormalquot; is defined relative to a time trend and seasonal factors. Banking and market-related crises differ in that banking crises were preceded by abnormal positive liquidity creation, while market-related crises were generally preceded by abnormal negative liquidity creation. Bank liquidity creation has both decreased and increased during crises, likely both exacerbating and ameliorating the effects of crises. Off-balance sheet guarantees such as loan commitments moved more than on-balance sheet assets such as mortgages and business lending during banking crises.Second, we examine the effect of pre-crisis bank capital ratios on the competitive positions and profitability of individual banks during and after each crisis. The evidence suggests that high capital served large banks well around banking crises - they improved their liquidity creation market share and profitability during these crises and were able to hold on to their improved performance afterwards. In addition, high-capital listed banks enjoyed significantly higher abnormal stock returns than low-capital listed banks during banking crises. These benefits did not hold or held to a lesser degree around market-related crises and in normal times. In contrast, high capital ratios appear to have helped small banks improve their liquidity creation market share during banking crises, market-related crises, and normal times alike, and the gains in market share were sustained afterwards. Their profitability improved during two crises and subsequent to virtually every crisis. Similar results were observed during normal times for small banks.
Liquidity In The Banking Sector
DOWNLOAD
Author : Laurent Salé
language : en
Publisher:
Release Date : 2016
Liquidity In The Banking Sector written by Laurent Salé and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
As one determinant of a bank's survival during the financial crisis of 2007-2008, liquidity in the banking sector presents a challenge for the financial and academic communities and has recently become a central point of interest. The three articles presented in this thesis focus on the two main facets of liquidity in the banking sector: the holding of liquid assets (i.e., cash and assimilated resources) and the process of liquidity-creation in banks used to fund loans. As will be discussed in the articles, these two aspects of liquidity can be viewed as two sides of the same coin. I acknowledge that liquidity in banking is linked to the creation of money; however, this thesis focuses on the aforementioned two aspects of liquidity. First, this section presents how ideas about liquidity in the banking sector have evolved in mainstream economic thought. Second, it considers the revival of cash-holding that has been observed since the financial crisis of 2007-2008. Third, it discusses the properties of liquidity. Fourth, it explores what we do not know about liquidity. Fifth, it identifies the fundamental issues analyzed in the three articles. Finally, it presents the methodology used in the articles to address these issues. Chapter1: “Why do banks hold cash ?”. This paper investigates the determinants of bank cash holding by using international data for the period 1981-2014. The results do not seem to provide support for the substitutability hypothesis regarding the substitutive relation between cash and debt levels. Further, using the GMM-system estimation method, we find no support for the dynamic optimal cash model, suggesting that cash management in the banking sector is bounded by number of constraints that make it difficult for the agents to optimize their utility. Chapter 2: “Does an increase in capital negatively impact banking liquidity creation?”. From a dataset composed of a panel of 940 listed banks based in European, American and Asian countries, this paper documents the evolution of bank liquidity creation over a 35-year period (1981-2014). The empirical evidence confirms that risk and equity levels play a significant and negative role. Overall, the negative effects of equity increases on bank liquidity creation are more significant than corresponding positive effects on risk management, suggesting that capital requirements imposed to support financial stability negatively affect liquidity creation. These findings have broad implications for policymakers. Chapter 3: “Positive effects of Basel III on banking liquidity creation”. This paper estimates the effect of the Basel III regulatory framework on banking liquidity creation. The results are based on a panel data set of U.S. banks that represent approximately 60% of U.S. loans and deposits over a 7-year period (from 2009 to 2015) in addition to difference-in-difference and standard survival methods. All components of Basel III taken together, there is empirical evidence that Basel III has a positive effect on banking liquidity creation in the US market in particular for major banks. These findings have broad implications for policy makers.
Bank Funding Structures And Risk
DOWNLOAD
Author : Mr.Francisco F. Vazquez
language : en
Publisher: International Monetary Fund
Release Date : 2012-01-01
Bank Funding Structures And Risk written by Mr.Francisco F. Vazquez and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-01-01 with Business & Economics categories.
This paper analyzes the evolution of bank funding structures in the run up to the global financial crisis and studies the implications for financial stability, exploiting a bank-level dataset that covers about 11,000 banks in the U.S. and Europe during 2001?09. The results show that banks with weaker structural liquidity and higher leverage in the pre-crisis period were more likely to fail afterward. The likelihood of bank failure also increases with bank risk-taking. In the cross-section, the smaller domestically-oriented banks were relatively more vulnerable to liquidity risk, while the large cross-border banks were more susceptible to solvency risk due to excessive leverage. The results support the proposed Basel III regulations on structural liquidity and leverage, but suggest that emphasis should be placed on the latter, particularly for the systemically-important institutions. Macroeconomic and monetary conditions are also shown to be related with the likelihood of bank failure, providing a case for the introduction of a macro-prudential approach to banking regulation.
Bank Competition Efficiency And Liquidity Creation In Asia Pacific
DOWNLOAD
Author : N. Genetay
language : en
Publisher: Springer
Release Date : 2015-07-28
Bank Competition Efficiency And Liquidity Creation In Asia Pacific written by N. Genetay and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-07-28 with Political Science categories.
Banking market integration in the Asia Pacific has greatly accelerated in recent years, in an environment of many other rapid advances in banking and finance. This has increased competition between domestic and foreign banks, and made the measurement of bank efficiency, competition, and liquidity creation a critical issue for both policy makers and bank managers. This book investigates important policy-related issues in Asia Pacific banking. It analyses the link between competition and stability, examining the cases of fourteen Asia Pacific countries between 2003 and 2010, and goes on to discuss whether bank shareholder value is influenced by cost and profit efficiency changes over time. The authors explore the different ways in which banks in Asia-Pacific create liquidity, and whether this is linked to capital generation. This book provides valuable insight for researchers, policy makers and bank managers with an interest in financial rationalization, restructuring and consolidation.
Capital Flows And The Twin Crises
DOWNLOAD
Author : Mr.Ilan Goldfajn
language : en
Publisher: International Monetary Fund
Release Date : 1997-07-01
Capital Flows And The Twin Crises written by Mr.Ilan Goldfajn and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1997-07-01 with Business & Economics categories.
This paper develops a model that focuses on the interaction of liquidity creation by financial intermediaries with capital flows and exchange rate collapses. The intermediaries’ role of transforming maturities is shown to result in larger movements of capital and a higher probability of crisis. These movements resemble the observed cycle in capital flows: large inflows, crisis and abrupt outflows. The model highlights how adverse productivity and international interest rate shocks may trigger a sudden outflow of capital and an exchange collapse. The initial shock is magnified by the behavior of individual foreign investors linked through their deposits in the intermediaries. The expectation of an eventual exchange rate crisis links investors’ behavior even further.