Gambling for resurrection in Iceland

Friðrik Már Baldursson, Richard Portes, 6 January 2014

a

A

The demise of the three large Icelandic banks, just after the fall of Lehman Brothers, was a key event in the spread of the financial crisis. A couple of weeks before its collapse in October 2008, Kaupthing bank announced that the Qatari investor Sheikh Mohammed Bin Khalifa Bin Hamad al-Thani had bought a 5.01% stake. This briefly boosted market confidence in Kaupthing (Financial Times 2008).

Topics: Financial markets
Tags: banking, banks, financial crisis, gambling for resurrection, Iceland, moral hazard

Dark side of housing-price appreciation

Indraneel Chakraborty, Itay Goldstein, Andrew MacKinlay, 25 November 2013

a

A

Policymakers around the world often worry about decreases in real-estate prices and other asset prices, and take measures to prevent them. For example, in the aftermath of the financial crisis, the Federal Reserve has engaged in large-scale asset purchases – especially of mortgage-backed assets – to support the housing market and, in turn, the overall economy.

Topics: Financial markets, Monetary policy
Tags: asset prices, banks, Federal Reserve, housing, investment, lending, real estate

Good corporate governance is bad for bank capitalisation

Deniz Anginer, Asli Demirgüç-Kunt, Harry Huizinga, Kebin Ma, 10 November 2013

a

A

A failing bank can be defined as one that has insufficient capital. Bank capitalisation strategies thus are crucial in determining the probability of a bank failure. Confirming this, Berger and Bouwman (2013) find that higher levels of pre-crisis capital increase a bank’s probability of survival during a banking crisis.

Topics: Financial markets
Tags: bank capitalisation, banks, corporate governance

A game changer: The EU banking recovery and resolution directive

Thomas Huertas, María J Nieto, 19 September 2013

a

A

To end moral hazard and “too big to fail”, investors, not taxpayers, should bear the loss associated with bank failures. Recently, ECOFIN took a major step in this direction. It agreed a common position with respect to the Banking Recovery and Resolution Directive. If confirmed in the trialogue with the Commission and the European Parliament, the Directive will:

Topics: Financial markets
Tags: banks, moral hazard, Too big to fail

How much capital should banks have?

Lev Ratnovski, 28 July 2013

a

A

There is an active debate on how much capital banks should have. Yet establishing an 'optimal' level of bank capital is more art than science. Any conclusion is model-specific and contains a degree of judgement. The purpose of this column is to contribute to the debate by offering one more benchmark.

Topics: Financial markets
Tags: banks, BASEL III, capital ratios

Supranational supervision: How much and for whom?

Thorsten Beck, Wolf Wagner, 20 July 2013

a

A

The question of how to regulate and supervise banks across countries has taken the centre stage in the debate on the reform of the banking sector. The failure of internationally active financial institutions, such as Lehman Brothers, and cross-border banks, such as Fortis, Dexia or the Icelandic banks, played a prominent role during the Global Crisis.

Topics: International finance
Tags: banks, regulatory cooperation, supranational regulation

Everything the IMF wanted to know about financial regulation and wasn’t afraid to ask

Sheila Bair, 9 June 2013

a

A

I was honoured when the IMF asked me to moderate the Financial Regulation panel at this year’s Rethinking Macro II conference. And while naturally, I delivered one of the more enlightening and thought-provoking policy discussions of the conference, I did fail in my duties as moderator to make sure my panellists covered all the excellent questions our sponsors submitted to us.

Topics: Financial markets
Tags: banks, capital ratios, financial regulation

New challenges for bank competition policy

Lev Ratnovski, 2 June 2013

a

A

Bank competition policy has been a focus of much research and policy debate. The reason for this is the special nature of banks. In the non-financial sector, competition policy mainly focuses on efficiency (competitive pricing). Yet for banks there is another relevant dimension: systemic risk.

Topics: Competition policy, Global crisis, International finance
Tags: banking, banks, Basel, Competition policy

Hair of the dog that bit us: New and improved capital requirements threaten to perpetuate megabank access to a taxpayer put

Edward J Kane, 30 January 2013

a

A


This column is a lead commentary in the VoxEU Debate "Banking reform: Do we know what has to be done?"

Topics: International finance
Tags: banks, Finance, financial regulation, global crisis, taxpayers, Too big to fail

Let’s get time and space back into finance

Biagio Bossone, 22 January 2013

a

A


This column is a lead commentary in the VoxEU Debate "Banking reform: Do we know what has to be done?"

Topics: Financial markets
Tags: Banking reform, banks, global crisis

Vox eBooks