Flood Risk and Financial Stability: Evidence from a Stress Test for the Netherlands

2021 ◽  
Author(s):  
Francesco Caloia ◽  
David-Jan Jansen
2021 ◽  
Vol 2019 (005r1) ◽  
pp. 1-85
Author(s):  
Antonio Falato ◽  
◽  
Diana Iercosan ◽  
Filip Zikes ◽  
◽  
...  

Banks use trading as a vehicle to take risk. Using unique high-frequency regulatory data, we estimate the sensitivity of weekly bank trading profits to aggregate equity, fixed-income, credit, currency and commodity risk factors. Our estimates imply that U.S. banks had large trading exposures to equity market risk before the Volcker Rule, which they curtailed afterwards. They also have exposures to credit and currency risk. The results hold up in a quasi-natural experimental design that exploits the phased-in introduction of reporting requirements to address identification. Heterogeneity and placebo tests further corroborate the results. Counterfactual stress-test analyses quantify the financial stability implications.


2018 ◽  
Vol 13 (1) ◽  
pp. 157-184
Author(s):  
Anne Loes Nillesen

INTRODUCTION The Netherlands faces a significant flood risk task. In order to remain a safe place to live the Netherlands has to upgrade its extensive flood risk protection system. This results in an elevation and reinforcement task for many of the Netherlands water barriers. When those barriers are positioned in an open landscape, the technical reinforcement is often easy to embed specially. However, many barriers have been built over the years making the reinforcement into a challenging spatial assignment. This article shows different case study examples of a research by design study (performed in the broader context of the Dutch Delta programme) that explores integral design solutions for flood risk and spatial (re)development. The Houston Galveston Bay case study demonstrates the international applicability of the research by design method.


2020 ◽  
Vol 106 ◽  
pp. 157-165 ◽  
Author(s):  
Dries Hegger ◽  
Meghan Alexander ◽  
Tom Raadgever ◽  
Sally Priest ◽  
Silvia Bruzzone

Water ◽  
2019 ◽  
Vol 11 (12) ◽  
pp. 2563
Author(s):  
Astrid Molenveld ◽  
Arwin van Buuren

In the Netherlands, dealing with the risk of flooding in the face of the current climate change requires a governance approach that is less based upon the long-standing tradition of prevention and protection, and more oriented toward ideas of resilience and adaptivity. Such an approach is assumed to be more resilient compared to static approaches and better equipped to deal with the indeterminate character of a problem like flood risk. This article presents the Dutch attempt to introduce a more polycentric and adaptive governance approach in flood management, called multilayered safety (MLS). We studied this approach via interviews and an extensive document study, and analyzed the institutions governing the issue using the Institutional Analysis and Development (IAD) framework of Elinor Ostrom. For years, the issue was in the hands of a small network of actors, mainly occupied by water experts and governed by a strong lead organization and permanent bodies. While introducing a new, more adaptive policy concept the government encountered both resistance and inability within the existing policy regime. This article shows that the issue of flood safety was successfully ‘tamed’ for decades. Adopting a more adaptive and polycentric approach necessitates ‘untaming’ the issue of flood safety.


2015 ◽  
Vol 4 (1) ◽  
pp. 63-93 ◽  
Author(s):  
Milena Vučinić

Abstract The global financial crisis has had far-reaching effects on financial systems and economies all over the world, thus putting the importance of safeguarding financial stability in the focus of interest of the global economy. This paper presents the importance of safeguarding financial stability and building a strong financial system with developed early identification and successful management of risks, i.e. a system resilient to shocks and capable of overcoming them. The paper focus is on the issue of financial stability of Montenegro, given through comparative analysis of the financial stability safeguarding frameworks in the Netherlands and the Republic of Serbia. The paper aims to present the regulatory institutional framework for safeguarding financial stability, and the measures that the countries take in order to achieve stability of their macroeconomic environment and financial system. The comparison of the characteristics and the approach to safeguarding the banking sector is particularly emphasised due to its major influence on the financial system stability.


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