CEAR-CenFIS Conference: “Interest Rate Variability and the Financial Sector”

Posted on April 24, 2023 by Madalina Patru

CfP Deadline Date:July 14, 2023 Conference Event:October 19-20, 2023 Event Location:Atlanta, United States Organizer(s):Center for Financial Innovation and Stability (Federal Reserve Bank of Atlanta)Center for Economic Analysis of Risk (Georgia State University) Description: Submission: We invite academics, professionals, and regulators to submit papers and/or ideas for panel discussions for this workshop. Long abstracts or, preferably,[…]

12th EBA Policy Research Workshop: Interest Rate and Liquidity Risk Management, Regulation and the Macro-economic Environment

Posted on April 24, 2023April 24, 2023 by Madalina Patru

CfP Deadline Date:July 7, 2023 Conference Event:November 7-8, 2023 Event Location:Paris, France Organizer(s):European Banking Authority Description: The 12th edition of the European Banking Authority’s Policy Research Workshop (https://www.eba.europa.eu/about-us/eba-research-workshops) will seek to explore policies that can ensure appropriate management of interest rate and liquidity risks while preserving financial stability. In the current context, and from the[…]

NBER Working Paper – Do Banks Hedge Using Interest Rate Swaps?

Posted on April 24, 2023April 24, 2023 by Madalina Patru

Author(s):Lihong McPhail, Philipp Schnabl & Bruce Tuckman Date:April 2023 Abstract: We ask whether banks use interest rate swaps to hedge the interest rate risk of their assets, primarily loans and securities. To this end, we use regulatory data on individual swap positions for the largest 250 U.S. banks. We find that the average bank has[…]

NBER Working Paper – Collateral Advantage: Exchange Rates, Capital Flows and Global Cycles

Posted on April 24, 2023April 24, 2023 by Madalina Patru

Author(s):Michael B. Devereux, Charles Engel & Steve Pak Yeung Wu Date:April 2023 Abstract: We construct a two-country New Keynesian model in which US government debt has an advantage as a superior collateral asset in the balance sheets of banks. The model can account for the observed response of the US dollar and US bond returns[…]

IHEID Working Paper – Bank Ownership Around the World

Posted on April 24, 2023April 24, 2023 by Madalina Patru

Author(s):Ugo Panizza Date:March 2023 Abstract: This paper builds a dataset on bank ownership that covers more than 6,500 banks in181 countries (59 low-income economies, 72 middle-income economies, and 50 high-income economies) over 1995-2020. I show that until 2010, there was a reduction instate-ownership of banks and an increase foreign ownership. However, the GlobalFinancial Crisis interrupted[…]

SSRN Paper – Social Media as a Bank Run Catalyst

Posted on April 24, 2023 by Madalina Patru

Author(s):Cookson, J. Anthony, C. Fox, J. Gil-Bazo, J. F. Imbet, and C. Schiller Date:April 2023 Abstract: Social media fueled a bank run on Silicon Valley Bank (SVB), and the effects were felt broadly in the U.S. banking industry. We employ comprehensive Twitter data to show that preexisting exposure to social media predicts bank stock market[…]

April 2023: Window dressing of Regulatory Metrics: Evidence from Repo Markets

Posted on April 20, 2023April 20, 2023 by Madalina Patru

Banks’ ability to temporarily contract their balance sheets around reporting dates to report more favourable regulatory metrics – a regulatory arbitrage practice commonly referred to as window dressing – poses a risk to financial stability. In this paper, we investigate both the magnitude and the drivers of bank window dressing behaviour in euro-denominated repo markets.[…]

April 2023: ECB and SRB welcome European Commission’s legislative proposals for bank crisis management and deposit insurance framework

Posted on April 19, 2023 by Madalina Patru

The European Central Bank (ECB) and the Single Resolution Board (SRB) welcome the European Commission’s proposed legislative changes to the European bank crisis management and deposit insurance framework. Link: ECB and SRB welcome European Commission’s legislative proposals for bank crisis management and deposit insurance framework

April 2023: Banking Union: Commission proposes reform of bank crisis management and deposit insurance framework

Posted on April 19, 2023 by Madalina Patru

The European Commission has today adopted a proposal to adjust and further strengthen the EU’s existing bank crisis management and deposit insurance (CMDI) framework, with a focus on medium-sized and smaller banks. Link: Banking Union: Commission proposes reform of bank crisis management and deposit insurance framework

CEPR Discussion Paper – Less Bank Regulation, More Non-Bank Lending

Posted on April 18, 2023 by Madalina Patru

Author(s):Mary Chen, Seung Jung Lee, Daniel Neuhann, and Farzad Saidi Date:March 2023 Abstract: Bank deregulation in the form of the repeal of the Glass-Steagall Act facilitated the entry of non-bank lenders into the market for syndicated loans during the pre-2008 credit boom. Institutional investors disproportionately purchase tranches of loans originated by universal banks able to[…]