scholarly journals Cross-Border Interbank Contagion in the European Banking Sector

Author(s):  
Silvia Gabrieli ◽  
Dilyara Salakhova ◽  
Guillaume Vuillemey
2019 ◽  
Vol 157 ◽  
pp. 33-54 ◽  
Author(s):  
Silvia Gabrieli ◽  
Dilyara Salakhova

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucia Gibilaro ◽  
Gianluca Mattarocci

Purpose This paper aims to examine the relevance of cross-border activity in the European banking sector, evaluating the role of differences in regulation to explain the level of interest in entering foreign markets. Design/methodology/approach The sample considers all banks in the European Union (EU 28) existing at year-end 2017, and information about the ultimate owners’ nationality to classify local and foreign banks is collected. The analysis provides a mapping of regulatory restrictions for foreign banks and evaluates how they impact the role of foreign players in the deposit and lending markets. Findings Results show that the lower are the capital adequacy requirements, the higher are the amounts of loans and deposits offered by non-European Economic Area banks and, additionally, the higher the probability of having a foreign bank operating in the country. Originality/value This paper provides new evidence on regulatory arbitrage opportunities in the EU and outlines differences among EU countries not previously studied.


2017 ◽  
Author(s):  
Konstantinos Gkillas ◽  
Christoforos Konstantatos ◽  
François Longin ◽  
Athanasios Tsagkanos

Author(s):  
Viral V. Acharya ◽  
Tim Eisert ◽  
Christian Eufinger ◽  
Christian Hirsch

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.


2020 ◽  
Author(s):  
Viral V. Acharya ◽  
Lea Borchert ◽  
Maximilian Jager ◽  
Sascha Steffen

2017 ◽  
Vol 10 (10) ◽  
pp. 169 ◽  
Author(s):  
Elisabetta D‘Apolito ◽  
Antonia P. Iannuzzi

The new regulations of banking compensation following the sub-prime crisis require that incentive plans must be linked not only to performance parameters, but also to non-financial or qualitative metrics related to social value produced by banks. This paper aims to analyze this issue by developing a qualitative rating (ESG-remuneration performance rating) to be used not only to investigate the spread and the diversification of such qualitative indicators, but also to analyze the best practices by banks. At a methodological level, the content analysis approach is adopted. The sample covers all of the “European globally systemically important institutions” (G-SIIs), while the investigation period regards the three-years 2014-2016. The main results are encouraging as they show a good diffusion of qualitative metrics by bank incentive plans; however, the intensive use, synthesized by the “ESG-remuneration performance rating”, is still inadequate. Moreover, the analysis reveal other criticalities linked to the implementation of the balance scorecard and the use of measurement tools in order to quantify the qualitative metrics correctly. (Note 1).


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