Last edited by Grojin
Saturday, July 25, 2020 | History

4 edition of Market discipline under systemic risk found in the catalog.

Market discipline under systemic risk

Eduardo Levy Yeyati

Market discipline under systemic risk

evidence from bank runs in emerging economies

by Eduardo Levy Yeyati

  • 110 Want to read
  • 6 Currently reading

Published by World Bank in [Washington, D.C .
Written in English

    Subjects:
  • Capital market.,
  • Bank failures.,
  • Risk management.

  • Edition Notes

    StatementEduardo Levy Yeyati, Maria Soledad Martinez Peria, and Sergio Schmukler.
    SeriesPolicy research working paper ;, 3440, Policy research working papers (Online) ;, 3440.
    ContributionsMartinez Peria, Maria Soledad., Schmukler, Sergio L., World Bank.
    Classifications
    LC ClassificationsHG3881.5.W57
    The Physical Object
    FormatElectronic resource
    ID Numbers
    Open LibraryOL3390546M
    LC Control Number2004620280

    There is a vigorous debate under way in the wake of the current economic and financial turmoil about whether the U.S. Congress should vest one or more financial regulatory agencies with the ability to monitor and attempt to reduce “systemic risk”—the risk that one or more failures of key financial institutions or markets could wreak havoc on the overall financial :// Market discipline under systemic risk - evidence from bank runs in emerging economies, Policy Research Working Greg Zerzan (1, words) [view diff] exact match in snippet view article find links to article

      Endogenous extreme events and the dual role of prices Procyclical leverage and endogenous risk Exchange rate determination and inter-market order flow effects Regime switches in the volatility and correlation of financial institutions Fat tails, VaR and subadditivity Liquidity determination in an order driven market Systemic risk arising from computer based trading and connections to the   For purposes of designating firms under section , it makes little sense to hypothesize all such crisis moments, since under this reasoning virtually all firms pose systemic risk. But it may be appropriate to assume a moderate amount of stress in financial markets when considering the first and second kinds of effects that would follow a firm

      Market discipline is effective because, normally, the creditors of private firms have powerful incentives to monitor the risk-taking and risk-management activities conducted by these organizations. In particular, if creditors believe that an organization is taking on increased risk, they will reduce their exposure to the organization or demand Under the Basic Indicator Approach used to compute own funds requirements for operational risk, how should the interest revenues from impaired loans be considered in the calculation of the Relevant Indicator (RI), namely, applying the effective interest rate on the gross carrying amount of the loans (before allowances/impairment) or on the


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Market discipline under systemic risk by Eduardo Levy Yeyati Download PDF EPUB FB2

Downloadable. The authors show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals. Systemic risk can affect market discipline both regardless of and through bank fundamentals.

First, worsening systemic conditions can directly threaten the value of deposits by way of dual agency ://   literature, systemic risk (driven by macroeconomic factors) is essential to understand the extent of market discipline and the way in which it materializes, particularly in emerging economies during crises.3 Moreover, we show that systemic risk can affect market discipline both regardless of, and through bank :// Market Discipline under Systemic Risk: Evidence from Bank Get this from a library.

Market discipline under systemic risk: evidence from bank runs in emerging economies. [Eduardo Levy Yeyati; Maria Soledad Martinez Peria; Sergio L Schmukler; World Bank.

Development Research Group. Finance.] -- "Levy-Yeyati, Martinez Peria, and Schmukler show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their As systemic risk increases, the informational content of past fundamentals declines.

These episodes also show how few systemic shocks can trigger a run irrespective of ex-ante fundamentals. Overall, the evidence suggests that in emerging economies, the notion of market discipline needs to account for systemic ://   As systemic risk increases, the informational content of past fundamentals declines.

These episodes also show how few systemic shocks can trigger a run irrespective of ex-ante fundamentals. Overall, the evidence suggests that in emerging economies, the notion of market discipline needs to account for systemic risk.

This paper - a product of the ?abstract_id= This paper shows that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals. Systemic risk can affect market discipline both regardless of and through bank fundamentals.

First, worsening systemic conditions can directly threaten the value of deposits via dual agency :// To document the importance of systemic risk on market discipline, we study the evidence from the recent systemic bank runs in Argentina and Uruguay duringwith a focus on the link between Systemic risk can affect market discipline both regardless of and through bank fundamentals.

First, worsening systemic conditions can directly threaten the value of deposits via dual agency ://   Home > Policy Research Working Papers > Market Discipline under Systemic Risk: Evidence from Bank Runs in Emerging Economies Market Discipline under Systemic Risk: Evidence from Bank Runs in Emerging Economies   Market Discipline under Systemic Risk Discussion by Solomon Tadesse.

Summary Levy-Yeyati, Martinez Peria and Schmukler () • Examines the extent of market discipline in the presence of System-wide risks, during crisis. Analyses depositors’ reactions to traditional bank CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): This paper shows that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals.

Systemic risk can affect market discipline both regardless of and through bank fundamentals. First, worsening systemic conditions can directly threaten ?doi= Market discipline under systemic risk - evidence from bank runs in emerging economies (English) Abstract.

The authors show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank How systemic risk is shaking the market’s foundations.

(under IAS 32) do not help. systemic risk concerns go to the foundations of the market and call for unusual management efforts systemic risk;rise and fall;interest rate on deposit;evidence of market discipline;government ownership of bank;existence of market discipline;probability of bank default Get this from a library.

Market discipline under systemic risk: evidence from bank runs in emerging economies. [Eduardo Levy Yeyati; Maria Soledad Martinez Peria; Sergio L Schmukler; World Bank.] -- "Levy-Yeyati, Martinez Peria, and Schmukler show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals   about systemic risk have focused on the private-sector, the U.S.

federal government is the world’s largest and most interconnected financial institution, and through its activities—as a banker, rule-maker, and regulator— represents a major source of systemic risk.

This 2 days ago  There has been much talk about using macroprudential policy to manage systemic risk and reduce negative spillovers, but there is little agreement on how it could be operationalised. This column highlights the findings of a new book on the topic and offers a framework for operationalising macroprudential policy.

Macroprudential measures, together with higher capital   occur compromises market discipline in good times, encouraging excessive leverage and risk taking.

This reinforces the systemic risk in the system. It is widely accepted that systemic risk needs to be contained by making it possible for these institutions to fail, thus restraining their incentives to take excessive risks in good ://. II. DEFINING THE CENTRAL PROBLEM: SYSTEMIC RISK REDUCTION.

The central objective of financial regulation (conceived as the prescription of rules, as distinct from supervision or risk assessment) is to reduce systemic risk. 2 Systemic risk can be defined in many ways. Most broadly, it is the risk that a national, or the global, financial system   The actual market value of the assets, that reveals more information on the bank’s financial health, is not directly observable.

6 This section describes the structural model, which is used to estimate market values of the bank’s assets, which will then allow us to estimate the systemic risk   So, the systemic risk argument basically relies on both the explicit proposition that the potential failure of the largest derivatives market participants poses a systemic risk, and the implicit position that a blanket protection of all contracts is the most effective means of reducing the risk posed to/by the few systemically important market