Interbank Tiering and Money Center Banks
Author : Ben Craig
Publisher :
Page : 50 pages
File Size : 38,89 MB
Release : 2010
Category : Banks and banking
ISBN :
Interbank Tiering and Money Center Banks
Author : Ben R. Craig
Publisher :
Page : 64 pages
File Size : 21,2 MB
Release : 2016
Category :
ISBN :
Book Description
This paper provides evidence that interbank markets are tiered rather than flat, in the sense that most banks do not lend to each other directly but through money center banks acting as intermediaries. We capture the concept of tiering by developing a core-periphery model, and devise a procedure for fitting the model to real-world networks. Using Bundesbank data on bilateral interbank exposures among 1800 banks, we find strong evidence of tiering in the German banking system. Moreover, bankspecific features, such as balance sheet size, predict how banks position themselves in the interbank market. This link provides a promising avenue for understanding the formation of financial networks.
CoMap: Mapping Contagion in the Euro Area Banking Sector
Author : Mehmet Ziya Gorpe
Publisher : International Monetary Fund
Page : 63 pages
File Size : 22,75 MB
Release : 2019-05-10
Category : Business & Economics
ISBN : 1498312071
Book Description
This paper presents a novel approach to investigate and model the network of euro area banks’ large exposures within the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic risk of the euro area banking system based on bilateral linkages. We develop a Contagion Mapping model fully calibrated with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that tipping points shifting the euro area banking system from a less vulnerable state to a highly vulnerable state are a non-linear function of the combination of network structures and bank-specific characteristics.
Filling in the Blanks
Author : Kartik Anand
Publisher :
Page : 23 pages
File Size : 43,35 MB
Release :
Category : Banks and banking
ISBN :
Book Description
The network pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often unobserved, and maximum entropy serves as the leading method for estimating counterparty exposures. This paper proposes an efficient alternative that combines information-theoretic arguments with economic incentives to produce more realistic interbank networks that preserve important characteristics of the original interbank market. The method loads the most probable links with the largest exposures consistent with the total lending and borrowing of each bank, yielding networks with minimum density. When used in a stress-testing context, the minimum density solution overestimates contagion, whereas maximum entropy underestimates it. Using the two benchmarks side by side defines a useful range that bounds the cost of systemic stress present in the true interbank network when counterparty exposures are unknown.
The Federal Reserve System Purposes and Functions
Author : Board of Governors of the Federal Reserve System
Publisher :
Page : 0 pages
File Size : 27,25 MB
Release : 2002
Category : Banks and Banking
ISBN : 9780894991967
Book Description
Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Negative Interest Rate Policy (NIRP)
Author : Andreas Jobst
Publisher : International Monetary Fund
Page : 48 pages
File Size : 23,99 MB
Release : 2016-08-10
Category : Business & Economics
ISBN : 1475524471
Book Description
More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.
Monetary and Exchange System Reforms in China
Author : Mr.Bernard Laurens
Publisher : International Monetary Fund
Page : 108 pages
File Size : 39,80 MB
Release : 1996-09-26
Category : Business & Economics
ISBN : 9781557755629
Book Description
In 1978, China embarked on a gradual but far-reaching reform of its economic system. This paper focuses on the achievements so far in reforming the financial sector, the legal framework for financial transactions, the payments system, and the monetary policy and foreign exchange system. It also analyzes the tasks ahead to achieve the goals set in these areas for the year 2000.
Estimating Bilateral Exposures in the German Interbank Market
Author : Christian Upper
Publisher :
Page : 37 pages
File Size : 13,6 MB
Release : 2016
Category :
ISBN :
Book Description
Credit risk associated with interbank lending may lead to domino effects, where the failureKreditrisiken aus Interbankbeziehungen können zu Dominoeffekten führen indem der.
Econometrics for Financial Applications
Author : Ly H. Anh
Publisher : Springer
Page : 1089 pages
File Size : 46,77 MB
Release : 2017-12-18
Category : Technology & Engineering
ISBN : 3319731505
Book Description
This book addresses both theoretical developments in and practical applications of econometric techniques to finance-related problems. It includes selected edited outcomes of the International Econometric Conference of Vietnam (ECONVN2018), held at Banking University, Ho Chi Minh City, Vietnam on January 15-16, 2018. Econometrics is a branch of economics that uses mathematical (especially statistical) methods to analyze economic systems, to forecast economic and financial dynamics, and to develop strategies for achieving desirable economic performance. An extremely important part of economics is finances: a financial crisis can bring the whole economy to a standstill and, vice versa, a smart financial policy can dramatically boost economic development. It is therefore crucial to be able to apply mathematical techniques of econometrics to financial problems. Such applications are a growing field, with many interesting results – and an even larger number of challenges and open problems.
Monetary Policy, Financial Crises, and the Macroeconomy
Author : Frank Heinemann
Publisher : Springer
Page : 349 pages
File Size : 31,92 MB
Release : 2017-09-29
Category : Business & Economics
ISBN : 3319562614
Book Description
This volume investigates different aspects of monetary policy and prevention of financial crises. It discusses some recently suggested measures for central banks' responses to liquidity shortages and to the liquidity trap, methods for assessing the potential of crisis contagion via the interbank network, and the interaction between micro- and macro-prudential regulation. It compares different approaches for solving the Eurozone sovereign-debt problem and provides a new and intriguing explanation for rising income inequality. The authors are experts on monetary policy, financial crises, and contract theory from different European universities and central banks.
