scholarly journals Does Bank Resolution Rule out the Use of Public Funds? The Case of the Podkarpacki Bank Spółdzielczy

2021 ◽  
pp. 135-157
Author(s):  
Andrzej R. Stopczyński
Keyword(s):  
Local Government ◽  
Banking Sector ◽  
Critical Function ◽  
Acceptable Solution ◽  
Bank Resolution ◽  
Resolution Rule ◽  
Insufficient Amount ◽  
Contagion Risk ◽  
Financial Arrangements ◽  
Rule Out

On 15 January 2020 Polish resolution authority made a decision to launch the resolution of a regional cooperative bank. The aim of the resolution was to maintain the service of local government units, considered as the critical function of the bank. The tool used was a bridge bank combined with bail-in to subordinated bonds and unguaranteed deposits, including deposits from local government units. The author is of the opinion that the write-off deposits from public entities was a substitute of the insufficient amount of liabilities contractually eligible for bail-in, served as the instrument enhancing credibility of resolution as well as protecting other creditors from excessive losses (i.e. mitigating contagion risk). The presented case of bank resolution, has been assessed as an example of intentionally bending of the stiff BRRD rules to an unusual case to find the practical, socially acceptable solution. By comparing this case with resolution of other small banks in the EU, the author argues that national authorities seek to limit the scope for bail-in and try to use the financial arrangements within the resolution of small local banks as more secure for the banking sector and socially acceptable manner.

scholarly journals Does bank resolution rule out the use of public funds? The case of the Podkarpacki Bank Spółdzielczy

2020 ◽  
Vol 1 (25) ◽  
pp. 81-104
Author(s):  
Andrzej Stopczyński
Keyword(s):  
Local Government ◽  
Banking Sector ◽  
Critical Function ◽  
Acceptable Solution ◽  
Bank Resolution ◽  
Resolution Rule ◽  
Insufficient Amount ◽  
Contagion Risk ◽  
Financial Arrangements ◽  
Rule Out

On 15 January 2020 Polish resolution authority made a decision to launch the resolution of a regional cooperative bank. The aim of the resolution was to maintain the service of local government units, considered as the critical function of the bank. The tool used was a bridge bank combined with bail-in to subordinated bonds and unguaranteed deposits, including deposits from local government units. The author is of the opinion that the write-off deposits from public entities was a substitute of the insufficient amount of liabilities contractually eligible for bail-in, served as the instrument enhancing credibility of resolution as well as protecting other creditors from excessive losses (i.e. mitigating contagion risk). The presented case of bank resolution, has been assessed as an example of intentionally bending of the stiff BRRD rules to an unusual case to find the practical, socially acceptable solution. By comparing this case with resolution of other small banks in the EU, the author argues that national authorities seek to limit the scope for bail-in and try to use the financial arrangements within the resolution of small local banks as more secure for the banking sector and socially acceptable manner.

Contagion risk in global banking sector

2019 ◽  
Vol 63 ◽  
pp. 101136 ◽  
Author(s):  
Kevin Daly ◽  
Jonathan A. Batten ◽  
Anil V. Mishra ◽  
Tonmoy Choudhury
Keyword(s):  
Banking Sector ◽  
Global Banking ◽  
Contagion Risk

California’s Natural Hazard Zonation Policies for Land-Use Planning and Development

2010 ◽  
Vol 5 (5) ◽  
pp. 535-542 ◽  
Author(s):  
Charles R. Real ◽  
Keyword(s):  
Land Use ◽  
Local Government ◽  
Natural Hazards ◽  
Land Use Planning ◽  
Natural Hazard ◽  
Risk Mitigation ◽  
Emergency Operation ◽  
Critical Function ◽  
General Plan ◽  
The Impact

California has established state-level policies that utilize knowledge of where natural hazards are more likely to occur to enhance the effectiveness of landuse planning as a tool for risk mitigation. These policies set minimum standards for local government, and range from State designation of regulatory natural hazard zones to requirements that cities and counties include a Safety Element in their General Plan that evaluates their exposure to earthquakes, wildfires, floods, and other natural hazards, and to prepare a federal Local Mitigation Plan to reduce the risk. Such requirements placed on local government are enforced by potential liability for losses for failure to act, and the potential ineligibility for disaster relief funds should a catastrophic event occur. Building codes have been the primary means of mitigating the impact of natural hazards, but continued growth into high-risk terrain and repetitive losses have focused attention to the merits of avoiding harm’s way by means of prudent land-use decisions. Restricting land use can be difficult under the pressures of growth and development. California code exploits knowledge that the cost to adequately protect public safety can influence the type of development that is feasible when considering occupancy (high/low density residential, manufacturing, parkland, etc.) and critical function, such as the need to maintain essential services (police, fire, hospitals, emergency operation centers, etc.). Experience in California demonstrates that a combination of education, outreach, and mutually supporting policies that are linked to state-designated natural hazard zones can form an effective framework for enhancing the role of land-use planning in reducing future losses from natural disasters.

Contagion Risk in Global Banking Sector

2017 ◽  
Author(s):  
Kevin Daly ◽  
Jonathan A. Batten ◽  
Anil V. Mishra ◽  
Tonmoy Toufic Choudhury
Keyword(s):  
Banking Sector ◽  
Global Banking ◽  
Contagion Risk

scholarly journals Konstruksi Penataan Daerah dan Model Pembagian Urusan Pemerintahan

SASI ◽  
2020 ◽  
Vol 26 (4) ◽  
pp. 557
Author(s):  
Sherlock Halmes Lekipiouw
Keyword(s):  
Local Government ◽  
Central Government ◽  
Regional Scale ◽  
Distribution Model ◽  
Regional Government ◽  
Legal Interpretation ◽  
Conceptual Approach ◽  
State Administration ◽  
Comprehensive Framework ◽  
Rule Out

Regional arrangement and distribution model of governmental affairs. The purpose of this research is to provide clarity regarding the legal interpretation of the formulation of norms in regional government laws. Research methods The research method uses normative research through a conceptual approach and a statue approach. The results showed that the development of decentralization into a state administration system had an impact on local government institutions, one of which was the distribution pattern of government affairs. Thus, comparing the distribution of functions is not possible without the overall decentralized institutional framework developed by a country. From this, a comprehensive framework of decentralization institutions and local government is needed. It also does not rule out the possibility for a region to propose governmental affairs that become its specialty, both on a provincial and regional scale. The concept of division of functions is carried out dynamically, where regions can carry out real government affairs (needed and in accordance with regional capacities). It should be possible for districts / cities to propose governmental affairs that are needed or not needed; who can or cannot be arrested. Decentralization can only work if it is based on a number of preconditions, namely a capable and effective central government. Therefore, it is necessary to review various regulations that are not in line with the principle of broadest autonomy.

scholarly journals Bail-In or Bail-Out? Correlation Networks to Measure the Systemic Implications of Bank Resolution

Risks ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 3 ◽  
Author(s):  
Paolo Giudici ◽  
Laura Parisi
Keyword(s):  
Risk Premium ◽  
Banking Sector ◽  
Financial Institution ◽  
Correlation Networks ◽  
Contagion Effects ◽  
Bank Resolution ◽  
Systemic Risks ◽  
Alternative Scenarios ◽  
Bail Out ◽  
Intervention Scenario

We propose a statistical measure, based on correlation networks, to evaluate the systemic risk that could arise from the resolution of a failing or likely-to-fail financial institution, under three alternative scenarios: liquidation, private recapitalization, or bail-in. The measure enhances the observed CDS spreads with a risk premium that derives from contagion effects across financial institutions. The empirical findings reveal that the recapitalization of a distressed bank performed by the other banks in the system and the bail-in resolution minimize the potential losses for the banking sector with respect to the liquidation scenario, thus posing limited systemic risks. A closer comparison between the private intervention recapitalization and the bail-in tool shows that the latter slightly reduces contagion effects with respect to the private intervention scenario.

scholarly journals Non-Traditional Systemic Risk Contagion within the Chinese Banking Industry

2021 ◽  
Vol 13 (14) ◽  
pp. 7954
Author(s):  
Tonmoy Choudhury ◽  
Simone Scagnelli ◽  
Jaime Yong ◽  
Zhaoyong Zhang
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
Banking Industry ◽  
Risk Measures ◽  
Banking System ◽  
Policy Implications ◽  
System Stability ◽  
Chinese Banking Industry ◽  
Contagion Risk ◽  
Chinese Banking

Systemic risk contagion is a key issue in the banking sector in maintaining financial system stability. This study is among the first few to use three different distance-to-risk measures to empirically assess the domestic interbank linkages and systemic contagion risk of the Chinese banking industry, by using bivariate dynamic conditional correlation GARCH model on data collected from eight prominent Chinese banks for the period 2006–2018. The results show a relatively high correlation among almost all the banks, suggesting an interconnectedness among the banks. We found evidence that the banking system is exposed to significant domestic contagion risks arising from systemic defaults. Given that Chinese markets deliver weak signals of forthcoming stress in banking sectors, new policy intervention is crucial to resolve the hidden stress in the system. The results have important policy implications and will provide scholars and policymakers further insight into the risk contagion originating from interbank networks.

scholarly journals Economic Fluctuation, Local Government Bond Risk and Risk-Taking of City Commercial Banks

2021 ◽  
Vol 13 (17) ◽  
pp. 9871
Author(s):  
Changjun Zheng ◽  
Shiying Chen ◽  
Zhenhuan Dong
Keyword(s):  
Local Government ◽  
Risk Taking ◽  
Commercial Banks ◽  
Banking Sector ◽  
Government Debt ◽  
Bank Risk ◽  
Government Bond ◽  
Economic Fluctuation ◽  
Bond Risk ◽  
The Impact

Countercyclical fiscal regulation can mitigate economic risk, but this is bound to increase the scale of local government debt during an economic downturn, and then spread risk to the banking sector, forming potential financial instability factors. We extracted the three most important variables in this process: economic fluctuation, local debt risk and bank risk-taking to build an econometric model and found that: (1) both economic fluctuations and local government bond risks have a significant impact on bank risk-taking, which is negatively correlated with local economic growth, while the increase of local government bond risks tends to increase bank risk-taking in the long run; (2) the impact of local government debt risk significantly increases the loans of city commercial banks flowing into the construction industry. Therefore, the impact of local government bond risk on city commercial banks is concentrated in the impact on their construction loans. This study has an important reference value for timely and moderate countercyclical regulation, preventing local debt risk from spreading to banks, constructing a sustainable local government−bank ecology, and promoting sustainable economic development.

scholarly journals ANALISIS PERENCANAAN DAN PENGANGGARAN UNTUK ANGGARAN PENDAPATAN DAN BELANJA DAERAH PADA BADAN KEUANGAN KABUPATEN KEPULAUAN SANGIHE TAHUN ANGGARAN 2015

2018 ◽  
Vol 13 (01) ◽  
Author(s):  
Dealice Ivana Barbakem ◽  
Jantje J. Tinangon ◽  
Harijanto Sabijono
Keyword(s):  
Local Government ◽  
Financial Management ◽  
Research Method ◽  
Local Governance ◽  
The Other ◽  
Fiscal Year ◽  
Research Results ◽  
Descriptive Research ◽  
Financial Arrangements

Planning and budgeting is a part which cannot be seperated from the proccess of government financial management. Need for integrity against a schedule of planning and budgeting Anggaran Pendapatan dan Belanja Daerah (APBD), linkages planning document that one against the other, as well as effective and efficient local government solutions to constrains in the planning and budgeting of the previous fiscal year APBD to be implemented in the next fiscal year. Badan Keuangan Kabupaten Kepulauan Sangihe is a functional government part that has the task of carrying out the affairs of local governance best on the principle of autonomy and helper task in the areas of income, asset and financial management areas, so that the operations of the system of government financial arrangements in particular regions can be run well. The purpose of this research was to determine whether the proccess of planning and budgeting for Anggaran Pendapatan dan Belanja Daerah (APBD) on Badan Keuangan Kabupaten Sangihe fiscal year 2015 is in compliance with Permendagri Nomor 13 Tahun 2006.This research uses descriptive research method. The research results showed of 14 steps, 1 of which shows the time and discrepancy functions according to Permendagri Nomor 13 Tahun 2006.    Keywords : Planning, Budgeting, Regional Expenditure

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