Board busyness, performance and financial stability: does bank type matter?

Interest rate and output gap: Does central bank credibility matter?

This paper studies the effects of central bank credibility on nominal interest rate and output gap on 17 inflation targeting (IT) developing countries using Instrument Variables (IV) over a period that spans 24 years (1996-2019). In the first stage, using new Keynesian model is obtained “Credibility loss” index to measure the importance of central bank past performance and its deviation from it...

Bank Funding and Financial Stability

The crisis of 2007–2008 was a crisis of collateral. Since then, financial market participants – particularly in the euro area and the United States – have shown an increased appetite for secured lending. In short-term bank funding markets, there has been a pronounced shift towards repurchase arrangements. And covered bonds have gained in popularity in long-term funding markets. The cyclical fli...

Bank regulation and financial fragility in developing countries: Does bank structure matter? ¬リニ

Using data for 1238 banks located in 94 developing and emerging countries, we explore whether the impact of bank regulation and supervision on banking risk (measured by the banks’ Z-scores) depends on bank structure. Our findings suggest that stricter regulation and supervision increases the banks’ Z-scores. Notably capital requirements and supervisory control diminish banking risk. However, th...

Does board certification really matter?

Bank Risk: Does Size Matter?

The size of banks is examined as a determinant of bank risk. A wide range of banks are examined across four regions, including Australia, Canada, Europe and the USA. Four risk metrics are considered including Value at Risk (VaR), Conditional Value at Risk (CVaR, which measures risk beyond VaR), Probability of Default (PD) using Merton structural methodology, and Conditional Probability of Defau...