Bank Liquidity Creation and Financial Crises

Bank Liquidity Creation and Financial Crises
Author: Allen Berger,Christa Bouwman
Publsiher: Academic Press
Total Pages: 294
Release: 2015-11-24
ISBN 10: 0128005319
ISBN 13: 9780128005316
Language: EN, FR, DE, ES & NL

Bank Liquidity Creation and Financial Crises Book Review:

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

The Oxford Handbook of Banking

The Oxford Handbook of Banking
Author: Allen N. Berger,Philip Molyneux,John O.S. Wilson
Publsiher: Oxford University Press
Total Pages: 994
Release: 2010
ISBN 10: 0199236615
ISBN 13: 9780199236619
Language: EN, FR, DE, ES & NL

The Oxford Handbook of Banking Book Review:

The Oxford Handbook of Banking provides an overview and analysis of state-of-the-art research in banking written by leading researchers in the field. It strikes a balance between abstract theory, empirical analysis, and practitioner and policy-related material.

Bank Liquidity and the Global Financial Crisis

Bank Liquidity and the Global Financial Crisis
Author: Laura Chiaramonte
Publsiher: Springer
Total Pages: 200
Release: 2018-07-09
ISBN 10: 3319944002
ISBN 13: 9783319944005
Language: EN, FR, DE, ES & NL

Bank Liquidity and the Global Financial Crisis Book Review:

One of the lessons learned from the Global Financial Crisis of 2007–9 is that minimum capital requirements are a necessary but inadequate safeguard for the stability of an intermediary. Despite the high levels of capitalization of many banks before the crisis, they too experienced serious difficulties due to insufficient liquidity buffers. Thus, for the first time, after the GFC regulators realized that liquidity risk can jeopardize the orderly functioning of a bank and, in some cases, its survival. Previously, the risk did not receive the same attention by regulators at the international level as other types of risk including credit, market, and operational risks. The GFC promoted liquidity risk to a significant place in regulatory reform, introducing uniform international rules and best practices. The literature has studied the potential effects of the new liquidity rules on the behaviour of banks, the financial system, and the economy as a whole. This book provides a comprehensive understanding of the bank liquidity crisis that occurred during the GFC, of the liquidity regulatory reform introduced by the Basel Committee with the Basel III Accord, and its implications both at the micro and macroeconomic levels. Università Cattolica del Sacro Cuore contributed to the funding of this research project and its publication.

High Liquidity Creation and Bank Failures

High Liquidity Creation and Bank Failures
Author: Zuzana Fungacova,Rima Turk,Laurent Weill
Publsiher: International Monetary Fund
Total Pages: 33
Release: 2015-05-06
ISBN 10: 1484371100
ISBN 13: 9781484371107
Language: EN, FR, DE, ES & NL

High Liquidity Creation and Bank Failures Book Review:

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.

The Maze of Banking

The Maze of Banking
Author: Gary B. Gorton
Publsiher: Oxford University Press, USA
Total Pages: 674
Release: 2015
ISBN 10: 0190204834
ISBN 13: 9780190204839
Language: EN, FR, DE, ES & NL

The Maze of Banking Book Review:

Financial crises are devastating in human and economic terms. To avoid the next one, it is important to understand the recent financial crisis of 2007-2008 and the financial eras which preceded it. Gary Gorton has been studying financial crises since his 1983 PhD thesis, "Banking Panics."The Maze of Banking contains a collection of his academic papers on the subjects of banks, banking, and financial crises. The papers in this volume span almost 175 years of U.S. banking history, from pre-U.S. Civil War private bank notes issued during the U.S. Free Banking Era (1837-1863); followed by the U.S. National Banking Era (1863-1914) before there was a central bank; through loan sales, securitization, and the financial crisis of 2007-2008. Banking changed profoundly during these 175 years, yet it did not change in fundamental ways. The forms of money changed, resulting in associated changes in the information structure of the economy. Bank debt evolved as an instrument for storing value, smoothing consumption, and transactions, but its fundamental nature did not change. In all its forms, it is vulnerable to bank runs without government intervention. These papers provide the framework for understanding how the financial crisis of 2007-2008 developed and what can be done to promote a stabile banking industry and prevent future economic crises.

TARP and other Bank Bailouts and Bail Ins around the World

TARP and other Bank Bailouts and Bail Ins around the World
Author: Allen N. Berger,Raluca A. Roman
Publsiher: Academic Press
Total Pages: 476
Release: 2020-06-09
ISBN 10: 0128138653
ISBN 13: 9780128138656
Language: EN, FR, DE, ES & NL

TARP and other Bank Bailouts and Bail Ins around the World Book Review:

Financial crises are recurring phenomena that result in the financial distress of systemically important banks, making it imperative to understand how to best respond to such crises and their consequences. Two policy responses became prominent for dealing with these distressed institutions since the last Global Financial Crisis: bailouts and bail-ins. The main questions surrounding these responses touch everyone: Are bailouts or bail-ins good for the financial system and the real economy? Is it essential to save distressed financial institutions by putting taxpayer money at risk in bailouts, or is it better to use private money in bail-ins instead? Are there better options, such as first lines of defense that help prevent such distress in the first place? Can countercyclical prudential and monetary policies lessen the likelihood and severity of the financial crises that often bring about this distress? Through careful analysis, authors Berger and Roman review and critically assess the extant theoretical and empirical research on many resolution approaches and tools. Placing special emphasis on lessons learned from one of the biggest bailouts of all time, the Troubled Asset Relief Program (TARP), while also reviewing other programs and tools, TARP and Other Bank Bailouts and Bail-Ins around the World sheds light on how best to protect the financial system on Wall Street and the real economy on Main Street. Presents a well-informed and rich account of bailouts, bail-ins, and other resolution approaches to resolve financially distressed banks. Uses TARP as a key case study of bailouts that has been thoroughly researched. Provides valuable research and policy guidance for dealing with future financial crises.

Liquidity Shortages and Banking Crises

Liquidity Shortages and Banking Crises
Author: Douglas Warren Diamond
Publsiher: Unknown
Total Pages: 39
Release: 2003
ISBN 10:
ISBN 13: UCSD:31822021212642
Language: EN, FR, DE, ES & NL

Liquidity Shortages and Banking Crises Book Review:

"We show in this paper that bank failures can be contagious. Unlike earlier work where contagion stems from depositor panics or ex ante contractual links between banks, we argue bank failures can shrink the common pool of liquidity, creating or exacerbating aggregate liquidity shortages. This could lead to a contagion of failures and a possible total meltdown of the system. Given the costs of a meltdown, there is a possible role for government intervention. Unfortunately, liquidity problems and solvency problems interact and can cause each other, making it hard to determine the root cause of a crisis from observable factors. We propose a robust sequence of intervention"--NBER website

The Oxford Handbook of Banking

The Oxford Handbook of Banking
Author: Allen N. Berger,Philip Molyneux,John O. S. Wilson
Publsiher: Oxford University Press, USA
Total Pages: 1312
Release: 2019-10
ISBN 10: 0198824637
ISBN 13: 9780198824633
Language: EN, FR, DE, ES & NL

The Oxford Handbook of Banking Book Review:

The Oxford Handbook of Banking provides an overview and analysis of state-of-the-art research in banking written by leading researchers in the field. This Handbook will appeal to graduate students of economics, banking and finance, academics, practitioners and policy makers. Consequently, the book strikes a balance between abstract theory, empirical analysis, and practitioner and policy-related material. The handbook is split into five parts. Part I, The Theory of Banking, examines the role of banks in the wider financial system, why banks exist, how they function, and their legal and governance structures. Part II entitled Regulatory and Policy Perspectives discusses monetary policy, prudential regulation and supervision, and antitrust policy. Part III of the book deals with bank performance. A number of issues are assessed including efficiency, financial innovation and technological change, globalization and ability to deliver small business, consumer, and mortgage lending services. Part IV of the book provides an overview of macroeconomic perspectives in banking. This part of the book includes a discussion of the determinants of bank failures and crises, and the impact on financial stability, institutional development, and economic growth. Part V examines International Differences In Banking Structures And Environments. This part of the handbook examines banking systems in the United States, Western Europe, Transition countries, Latin America, Japan and the Developing nations of Asia.

Financial Crises

Financial Crises
Author: Franklin Allen,Douglas Gale
Publsiher: Edward Elgar Pub
Total Pages: 579
Release: 2008
ISBN 10:
ISBN 13: NWU:35556038268827
Language: EN, FR, DE, ES & NL

Financial Crises Book Review:

This important volume presents key contributions to the study of financial crises from many different areas of economics. The book offers an economic history of financial crises, empirical studies of crises in the modern era, and classic works on the theory of banking crises. It also covers specialized topics, with sections on currency crises and financial contagion. Undergraduate students of money, banking, macroeconomics and financial crises alike will find this collection to be an invaluable overview of a critical area of study.

Bank Funding Structures and Risk

Bank Funding Structures and Risk
Author: Mr.Francisco F. Vazquez,Mr.Pablo Federico
Publsiher: International Monetary Fund
Total Pages: 33
Release: 2012-01-01
ISBN 10: 1463933142
ISBN 13: 9781463933142
Language: EN, FR, DE, ES & NL

Bank Funding Structures and Risk Book Review:

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.

Banks Short Term Debt and Financial Crises

Banks  Short Term Debt and Financial Crises
Author: Douglas W. Diamond,Raghuram Rajan
Publsiher: Unknown
Total Pages: 39
Release: 2000
ISBN 10:
ISBN 13: UCSD:31822025805169
Language: EN, FR, DE, ES & NL

Banks Short Term Debt and Financial Crises Book Review:

The National Bureau of Economic Research, Inc. (NBER) presents an abstract of the June 2000 working paper entitled "Banks, Short Term Debt and Financial Crises: Theory, Policy Implications and Applications," written by Douglas W. Diamond and Raghuram G. Rajan. The full text of the paper may be purchased online. This paper argues that while the empirical association between a financial institution's short-term borrowing and susceptibility to crises may exist, the direction of causality is often the opposite to the one traditionally suggested by commentators.

The GCC Banking Sector

The GCC Banking Sector
Author: Abdullah Al-Hassan,Nada Oulidi,Ms.May Y. Khamis
Publsiher: International Monetary Fund
Total Pages: 45
Release: 2010-04-01
ISBN 10: 1451982615
ISBN 13: 9781451982619
Language: EN, FR, DE, ES & NL

The GCC Banking Sector Book Review:

In this paper, we analyze the evolution of the Gulf Cooperation Council (GCC) banking sectors in the six member countries including ownership, concentration, cross-border linkages, balance sheet exposures and risks, recent trends in credit growth, and financial soundness. We identify risks to the banking sector's financial stability in the context of the current global crisis and their mitigating factors.

Maintaining Stability in a Changing Financial System

Maintaining Stability in a Changing Financial System
Author: Federal Reserve Bank of Kansas City. Symposium,Federal Reserve Bank of Kansas City
Publsiher: Unknown
Total Pages: 685
Release: 2009
ISBN 10:
ISBN 13: STANFORD:36105213128197
Language: EN, FR, DE, ES & NL

Maintaining Stability in a Changing Financial System Book Review:

The articles in this publication can be obtained in electronic form from the Federal Reserve Bank of Kansas City's web site: http://www.KansasCityFed.org.

Understanding Financial Crises

Understanding Financial Crises
Author: Franklin Allen,Douglas Gale
Publsiher: OUP Oxford
Total Pages: 303
Release: 2007-03-22
ISBN 10:
ISBN 13: STANFORD:36105123289154
Language: EN, FR, DE, ES & NL

Understanding Financial Crises Book Review:

What causes a financial crisis? Can crises be anticipated or even avoided? Should governments and international institutions intervene? Based on ten years of research, the authors develop a theoretical approach to analyzing financial crises and use the latest economic theories to begin to understand the causes and consequences of financial crises. - ;What causes a financial crisis? Can financial crises be anticipated or even avoided? What can be done to lessen their impact? Should governments and international institutions intervene? Or should financial crises be left to run their course? In the aftermath of the recent Asian financial crisis, many blamed international institutions, corruption, governments, and flawed macro and microeconomic policies not only for causing the crisis but also unnecessarily lengthening and deepening it. Based on ten years of research, the authors develop a theoretical approach to analyzing financial crises. Beginning with a review of the history of financial crises and providing readers with the basic economic tools needed to understand the literature, the authors construct a series of increasingly sophisticated models. Throughout, the authors guide the reader through the existing theoretical and empirical literature while also building on their own theoretical approach. The text presents the modern theory of intermediation, introduces asset markets and the causes of asset price volatility, and discusses the interaction of banks and markets. The book also deals with more specialized topics, including optimal financial regulation, bubbles, and financial contagion. -

The Financial Crisis Inquiry Report Authorized Edition

The Financial Crisis Inquiry Report  Authorized Edition
Author: Financial Crisis Inquiry Commission
Publsiher: PublicAffairs
Total Pages: 576
Release: 2011-01-27
ISBN 10: 1610390423
ISBN 13: 9781610390422
Language: EN, FR, DE, ES & NL

The Financial Crisis Inquiry Report Authorized Edition Book Review:

The definitive report on what caused America's economic meltdown and who was responsibleThe financial and economic crisis has touched the lives of millions of Americans who have lost their jobs and their homes, but many have little understanding of how it happened. Now, in this very accessible report, readers can get the facts. Formed in May 2009, the Financial Crisis Inquiry Commission (FCIC) is a panel of 10 commissioners with experience in business, regulations, economics, and housing, chosen by Congress to explain what happened and why it happened. This panel has had subpoena power that enabled them to interview people and examine documents that no reporter had access to. The FCIC has reviewed millions of pages of documents, and interviewed more than 600 leaders, experts, and participants in the financial markets and government regulatory agencies, as well as individuals and businesses affected by the crisis. In the tradition of The 9/11 Commission Report, "The Financial Crisis Inquiry Report" will be a comprehensive book for the lay reader, complete with a glossary, charts, and easy-to-read diagrams, and a timeline that includes important events. It will be read by policy makers, corporate executives, regulators, government agencies, and the American people.

The Origin of Financial Crises

The Origin of Financial Crises
Author: George Cooper
Publsiher: Vintage
Total Pages: 210
Release: 2008-12-09
ISBN 10: 0307473686
ISBN 13: 9780307473684
Language: EN, FR, DE, ES & NL

The Origin of Financial Crises Book Review:

In a series of disarmingly simple arguments financial market analyst George Cooper challenges the core principles of today's economic orthodoxy and explains how we have created an economy that is inherently unstable and crisis prone. With great skill, he examines the very foundations of today's economic philosophy and adds a compelling analysis of the forces behind economic crisis. His goal is nothing less than preventing the seemingly endless procession of damaging boom-bust cycles, unsustainable economic bubbles, crippling credit crunches, and debilitating inflation. His direct, conscientious, and honest approach will captivate any reader and is an invaluable aid in understanding today's economy.

Systemic Banking Crises Revisited

Systemic Banking Crises Revisited
Author: Mr.Luc Laeven,Mr.Fabian Valencia
Publsiher: International Monetary Fund
Total Pages: 48
Release: 2018-09-14
ISBN 10: 1484377044
ISBN 13: 9781484377048
Language: EN, FR, DE, ES & NL

Systemic Banking Crises Revisited Book Review:

This paper updates the database on systemic banking crises presented in Laeven and Valencia (2008, 2013). Drawing on 151 systemic banking crises episodes around the globe during 1970-2017, the database includes information on crisis dates, policy responses to resolve banking crises, and the fiscal and output costs of crises. We provide new evidence that crises in high-income countries tend to last longer and be associated with higher output losses, lower fiscal costs, and more extensive use of bank guarantees and expansionary macro policies than crises in low- and middle-income countries. We complement the banking crises dates with sovereign debt and currency crises dates to find that sovereign debt and currency crises tend to coincide or follow banking crises.

Financial Crises Explanations Types and Implications

Financial Crises Explanations  Types  and Implications
Author: Mr.Stijn Claessens,Mr.Ayhan Kose
Publsiher: International Monetary Fund
Total Pages: 66
Release: 2013-01-30
ISBN 10: 1475561008
ISBN 13: 9781475561005
Language: EN, FR, DE, ES & NL

Financial Crises Explanations Types and Implications Book Review:

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Bank Risk Management in Developing Economies

Bank Risk Management in Developing Economies
Author: Leonard Onyiriuba
Publsiher: Academic Press
Total Pages: 668
Release: 2016-10-04
ISBN 10: 0128093595
ISBN 13: 9780128093597
Language: EN, FR, DE, ES & NL

Bank Risk Management in Developing Economies Book Review:

Bank Risk Management in Developing Economies: Addressing the Unique Challenges of Domestic Banks provides an up-to-date resource on how domestically-based banks in emerging economies can provide financial services for all economic sectors while also contributing to national economic development policies. Because these types of bank are often exposed to risky sectors, they are usually set apart from foreign subsidiaries, and thus need risk models that foreign-based banks do not address. This book is the first to identify these needs, proposing solutions through the use of case studies and analyses that illustrate how developing economic banking crises are often rooted in managing composite risks. The book represents a departure from classical literature that focuses on assets, liabilities, and balance sheet management, by which developing economy banks, like their counterparts elsewhere, have not fared well. Contains fifty cases that reinforce risk management best practices Provides a consistent chapter format that includes abstract, keywords, learning focus, and outcomes Summaries, questions, and glossaries conclude each chapter

Shadow Banking

Shadow Banking
Author: Anonim
Publsiher: Unknown
Total Pages: 329
Release: 2010
ISBN 10:
ISBN 13: OCLC:863068438
Language: EN, FR, DE, ES & NL

Shadow Banking Book Review: