Economic value, competition and financial distress in the European banking system

2012 ◽  
Vol 36 (11) ◽  
pp. 3101-3109 ◽  
Author(s):  
Andrea Cipollini ◽  
Franco Fiordelisi
Keyword(s):  
Financial Distress ◽  
Economic Value ◽  
Banking System ◽  
European Banking

Same Story, Different Place?

2018 ◽  
Author(s):  
Viral V. Acharya ◽  
Tim Eisert ◽  
Christian Eufinger ◽  
Christian Hirsch
Keyword(s):  
Banking Sector ◽  
Debt Crisis ◽  
Banking System ◽  
Policy Implications ◽  
Balance Sheets ◽  
System P ◽  
Loan Supply ◽  
European Banking ◽  
European Debt Crisis

This chapter compares the recapitalizations of the Japanese banking sector in the 1990s with those in the ongoing European debt crisis. The analysis points to four main policy implications. First, recapitalizing banks by insuring or purchasing troubled assets alone is not likely to solve the problem of banks’ weak capitalization, as this measure is not able to adjust the extent of the recapitalization to the banks’ specific needs. Second, the amount of the recapitalization should be based on actual capital shortages and not risk-weighted assets to avoid banks decreasing their loan supply. Third, banks should face restrictions regarding the amount of dividends they are allowed to pay out. Finally, banks must be induced to clean up their balance sheets and reduce the amount of bad (non-performing) loans to rebuild confidence in the European banking system.

scholarly journals Financial stability and local economic development: the experience of Italian labour market areas

2021 ◽  
Author(s):  
Cristian Barra ◽  
Roberto Zotti
Keyword(s):  
Economic Development ◽  
Labour Market ◽  
Financial Distress ◽  
Financial Stability ◽  
Local Economic Development ◽  
Banking System ◽  
Spatial Effects ◽  
Financial Conditions ◽  
Market Areas ◽  
The Relationship

AbstractRegulators should ensure the smooth functioning of the system and promote regional development. Making the health of financial institutions is therefore a prerequisite for a sustainable economic development. This paper contributes to the literature on the relationship between the financial stability and growth within the area of one country. This implies that institutional, legal, and cultural factors are more adequately controlled for and financial markets are more accurately bounded. Using a rich sample of Italian banks over the 2001–2012 period, this paper addresses whether different measures of financial distress affect economic development of labour market areas in Italy. Results show that the financial stability has a positive effect on local economic development, robust to alternative variables capturing financial vulnerability. The presence of spatial effects is tested showing that better financial conditions of the banking system in neighbouring areas have a detrimental effect on an area’s growth.

scholarly journals Crisis Management and Resolution for a European Banking System

2010 ◽  
Vol 2010 (070) ◽  
pp. 1
Author(s):  
Daniel Hardy ◽  
Luis Cortavarria-Checkley ◽  
Alessandro Giustiniani ◽  
Wim Fonteyne ◽  
Wouter Bossu ◽  
...  
Keyword(s):  
Crisis Management ◽  
Banking System ◽  
European Banking

scholarly journals Ranking of EU national banking systems using multi-criteria analysis in the light of Brexit

2017 ◽  
Vol 67 (4) ◽  
pp. 473-509 ◽  
Author(s):  
Magdalena Radulescu ◽  
Aleksandra Fedajev ◽  
Djordje Nikolic
Keyword(s):  
System Analysis ◽  
Banking System ◽  
Entropy Method ◽  
Banking Union ◽  
Policy Makers ◽  
Promethee Ii ◽  
Banking Systems ◽  
Eu Member States ◽  
European Banking ◽  
Multi Criteria Analysis

In order to define and implement the most effective measures to overcome the difficulties of the post-crisis period, the policy-makers of ECB must identify not just main weaknesses of each banking system, but their strong points also. This requires the application of multi-criteria analysis, considering that policy-makers need to take into account a number of different aspects that, on the whole, indicate the quality of the banking system. Our aim is a comparative analysis of European banking systems right after the Brexit moment and within the framework of the tight new Basel III regulations. In this paper, we have ranked the banking systems of the 28 EU member states using multi-criteria analysis, specifically the PROMETHEE II method. The use of the PROMETHEE II method in combination with the entropy method offers a comprehensive insight into the banking system of each member state, given that the observed countries are ranked according to 9 conflicting criteria that are mostly used in banking system analysis. Our analysis shows that the banking systems in Central and Eastern Europe are the best performers, while the EMU’s developed banking systems such as the German, Italian, British, and French one are positioned among the last ranked. The Portuguese and Greek banking systems are, as expected, ranked in the last positions in our list. The obtained results also pointed out that the ECB should change its approach to the management and further development of a European Banking Union.

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