Bank risk and charter value: the role of opacity

2021 ◽  
Vol 12 (2) ◽  
pp. 141
Author(s):  
Chris Brune ◽  
Kevin Lee ◽  
Scott Miller
Keyword(s):  
Bank Risk ◽  
Charter Value

Bank risk and charter value: the role of opacity

2021 ◽  
Vol 12 (2) ◽  
pp. 141
Author(s):  
Chris Brune ◽  
Kevin Lee ◽  
Scott Miller
Keyword(s):  
Bank Risk ◽  
Charter Value

scholarly journals The implications for bank risk posed by the bail-in amendments to the ranking of unsecured senior debt instruments in insolvency hierarchy

2021 ◽  
Vol 10 (2) ◽  
pp. 108-117
Author(s):  
Laurence Jones ◽  
Enrico Geretto ◽  
Maurizio Polato ◽  
Giulio Velliscig
Keyword(s):  
Side Effects ◽  
Panel Data ◽  
Bank Risk ◽  
Panel Data Regression ◽  
Data Regression ◽  
Bank Managers ◽  
Before And After ◽  
Asset Class ◽  
European Banks

Given the scarce empirical research supporting the branch of literature investigating the shortcomings of the bail-in regime (Hadjiemmanuil, 2015; Walther & White, 2020; Tröger, 2020), this paper offers a contribution in this regard investigating the implications for bank risk posed by the amendments to the unsecured senior debt asset class required to enhance the bail-in regime. To this purpose, we use a sample of 46 banks distributed over 17 European countries over the period of Q1 2010–Q4 2019. We thus run a fixed effect panel data regression over the entire period and also over the subperiods before and after the start of the overhaul of the unsecured senior debt asset class. Our main result points out the significant role of unsecured senior debt in explaining bank’s risk after the start of the amendments campaign which allowed this asset class to serve the enhancement of the bail-in regime. We attribute this result to the uncertain gone-concern loss-absorbing capacity of unsecured senior debt and its material cost exacerbated by the bail-in buffer shortfall of many European banks. Our result pique policymakers’ attention to the side-effects of the amendments to the bail-in regime and further guide bank managers’ decisions about regulatory funding strategies.

The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry

2020 ◽  
Vol 23 (03) ◽  
pp. 2050020 ◽  
Author(s):  
Faisal Abbas ◽  
Shahid Iqbal ◽  
Bilal Aziz
Keyword(s):  
Emerging Economies ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Association ◽  
Bank Risk ◽  
Standard Errors ◽  
Bank Capital ◽  
Short Run ◽  
The Impact

This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.

The Coordination Role of Stress Tests in Bank Risk‐Taking

2019 ◽  
Vol 57 (5) ◽  
pp. 1161-1200 ◽  
Author(s):  
CARLOS CORONA ◽  
LIN NAN ◽  
GAOQING ZHANG
Keyword(s):  
Risk Taking ◽  
Bank Risk ◽  
Stress Tests

Charter value, Tobin's Q and bank risk during the subprime financial crisis

2011 ◽  
Vol 63 (5) ◽  
pp. 372-391 ◽  
Author(s):  
Jeffrey S. Jones ◽  
Scott A. Miller ◽  
Timothy J. Yeager
Keyword(s):  
Financial Crisis ◽  
Bank Risk ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Charter Value

Monitoring Financial Distress in a High-Stress Financial World: The Role of Option Prices as Bank Risk Metrics

2012 ◽  
Vol 44 (3) ◽  
pp. 229-257 ◽  
Author(s):  
Jérôme Coffinet ◽  
Adrian Pop ◽  
Muriel Tiesset
Keyword(s):  
Financial Distress ◽  
High Stress ◽  
Bank Risk ◽  
Option Prices
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