Exploring the transmission channels of contagious bank runs

Martin Brown, Stefan Trautmann, Razvan Vlahu, 10 April 2014

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Financial contagion – the situation in which liquidity or insolvency risk is transmitted from one financial institution to another – is viewed by policymakers and academics as a key source of systemic risk in the banking sector.

Topics: Financial markets
Tags: bank runs, banking, banks, contagion, experimental economics, financial crisis, financial stability, global crisis, systemic risk

Banks’ disclosure and financial stability

Rhiannon Sowerbutts, Ilknur Zer, Peter Zimmerman, 5 April 2014

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Investors in banks need information about the risks that they are exposed to in order to be able to assess and price those risks properly. However, during the recent crisis, investors found that they did not have enough information to assess these risks, which led to a dramatic increase in funding costs, intensifying the crisis (Gorton 2008).

Topics: Global governance, International finance
Tags: bank disclosure, financial stability, risk information

The role of central banks in financial stability: How has it changed?

Willem Buiter, 16 January 2012

 

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URL: http://www.cepr.org/DP8780
Topics: EU institutions, Financial markets, Global crisis, Global economy, Institutions and economics, Macroeconomic policy, Monetary policy, Politics and economics
Tags: accountability, Central Banks, financial stability, global crisis, unorthodox monetary policy

Coordinating bank-failure costs and financial stability

Iman van Lelyveld, Marco Spaltro, 27 October 2011

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During the financial crisis, failure or distress of cross-border firms has been met by ad hoc coordinated solutions (eg Fortis and Dexia) or national solutions (eg UK and US banks).

Topics: Europe's nations and regions, Global crisis, International finance
Tags: bank resolution, burden-sharing, cross-border banking, Eurozone crisis, financial stability

Rethinking central banking

Barry Eichengreen, Eswar Prasad, Raghuram Rajan, 20 September 2011

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In the wake of the global financial crisis, there is an emerging consensus that the framework underpinning modern central banking – known as flexible inflation targeting – needs to be rethought.

Topics: Monetary policy
Tags: central banking, financial stability, flexible inflation targeting

Monetary policy and excessive bank risk taking

Itai Agur, Maria Demertzis, 13 January 2011

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Disclaimer: The views expressed in this article are those of the authors only, and do not reflect the views of De Nederlandsche Bank or of its Board.

Topics: Monetary policy
Tags: financial stability, Leaning against the wind

The impact of banking sector stability on the real economy

Pierre Monnin, Terhi Jokipii, 7 October 2010

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At the November 2008 meeting of the G20, just two months after the collapse of Lehman Brothers, the need for regulatory reform had already been clearly established.

Topics: Financial markets, Global crisis
Tags: business cycle, financial regulation, financial stability

The “other” imbalance and the financial crisis

Ricardo Caballero, 14 January 2010

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One of the main economic villains before this crisis was the presence of large “global imbalances”, which refer to the massive and persistent current account deficits experienced by the US and financed by the periphery. The IMF, then in a desperate search for a new mandate that would justify its existence, had singled out these imbalances as a paramount risk for the global economy.

Topics: Global crisis
Tags: financial stability, global crisis, global imbalances

Securitisation and financial stability

Hyun Song Shin, 18 March 2009

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Financial booms and busts are as old as finance itself, but the current global financial crisis has the distinction of being the first post-securitisation crisis. Securitisation refers to banks’ practice of parcelling and selling loans to other investors.

Topics: Global crisis
Tags: financial stability, global crisis debate, risk, securitisation

Reforms of the world financial system: Can the G20 deliver?

Luigi Spaventa, 28 January 2009

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In these hard times, with banks collapsing by the week and the arteries of credit clogged in spite of government interventions of unprecedented size and nature, drafting blueprints of reform of the financial system may seem an unnecessary distraction from more pressing challenges. It is not so.

Topics: Global governance
Tags: financial regulation, financial stability, G20

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