FORMING THE FINANCIAL STABILITY OF COMMERCIAL BANK

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...

AL2X: An Expert System for Off-Site Evaluation of Commercial Bank Financial Stability

Doctors spend their lives treating patients, who come to them in a never-ending stream, and they inevitably see the answer to any disease in terms of treatment rather than prevention. Nonetheless, historically, progress against disease has come from prevention and vaccines, not cures. By substituting " bank regulators " for " doctors " and " troubled banks " for " patients, " Cairns's insight c...

Human Migration and Commercial Bank Risk During the Financial Crisis

Behavioral Perspectives on Central Bank Communication for Financial Stability

Analyzing central bank communication during financial crises, we draw on a surprisingly informative parallel between management of natural disasters such as earthquakes on one hand, and the corresponding communication infrastructure and social interaction during financial turmoil, on the other. The role of social and emotional behavior thereof points to the importance of interpersonal comm...

Comparison of Bank Financial Stability Factors in CIS Countries

We develop the model for estimating the default probabilities of banks for Russia, Belarus, Kazakhstan and Ukraine using banking statistics from 2005 to 2013. We find that a binary logit regression works best. In addition, macroeconomic and institutional factors significantly improve model accuracy. The results indicate that there are significantly different sources of risk in banking in the co...