Stressed, Not Frozen

Stressed, Not Frozen PDF Author: Gara Afonso
Publisher: DIANE Publishing
ISBN: 1437930174
Category : Business & Economics
Languages : en
Pages : 61

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Book Description
This is a print on demand edition of a hard to find publication. Examines the impact of the financial crisis of 2008, specifically the bankruptcy of Lehman Brothers, on the federal funds market. Rather than a complete collapse of lending in the presence of a market-wide shock, banks became more restrictive in their choice of counter-parties. Following the Lehman bankruptcy, amounts and spreads became more sensitive to a borrowing bank¿s characteristics. While the market did not contract dramatically, lending rates increased. Further, the market did not seem to expand to meet the increased demand predicted by the drop in other bank funding markets. The authors examine discount window borrowing as a proxy for unmet fed funds demand and find that the fed funds market is not indiscriminate. Illustrations.

Stressed, Not Frozen

Stressed, Not Frozen PDF Author: Gara Afonso
Publisher: DIANE Publishing
ISBN: 1437930174
Category : Business & Economics
Languages : en
Pages : 61

Get Book Here

Book Description
This is a print on demand edition of a hard to find publication. Examines the impact of the financial crisis of 2008, specifically the bankruptcy of Lehman Brothers, on the federal funds market. Rather than a complete collapse of lending in the presence of a market-wide shock, banks became more restrictive in their choice of counter-parties. Following the Lehman bankruptcy, amounts and spreads became more sensitive to a borrowing bank¿s characteristics. While the market did not contract dramatically, lending rates increased. Further, the market did not seem to expand to meet the increased demand predicted by the drop in other bank funding markets. The authors examine discount window borrowing as a proxy for unmet fed funds demand and find that the fed funds market is not indiscriminate. Illustrations.

The Effect of Premortem Stress, Holding Temperatures, and Freezing on the Biochemistry and Quality of Skipjack Tuna

The Effect of Premortem Stress, Holding Temperatures, and Freezing on the Biochemistry and Quality of Skipjack Tuna PDF Author: Ladell Crawford
Publisher:
ISBN:
Category : Canned seafood
Languages : en
Pages : 32

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Book Description
This experiment was designed to determine if there were differences (biochemical and/or organoleptic) before and after canning rested and stressed skipjack tuna. The live fish were captured off Oahu and were placed in shoreside tanks in Honolulu, Hawaii. After having been under observation for 24 hr, the fish were sacrificed in a rested or stressed condition. Stress was induced by forcing fish to swim around a tank until they showed signs of exhaustion. The rested fish were kept in a separate tank and were agitated as little as possible before being sacrificed. Some of the sacrificed tuna were canned immediately to serve as controls. Others were held in 32°, 60°, and 78° F seawater (SW) for 6 hr, and some were held in 78° F SW for 9 hr before canning. An equal number of fish from all treatments were brine frozen (for 20 hr), then thawed and canned. Sample wedges were taken before canning for measurements of glycolytic and purine degradation products. These measurements together with organoleptic evaluation were also determined on the canned product. There were no commercially discernible differences between rested and stressed skipjack subjected to various time-temperature treatments. The relation of the measured biochemical parameters to the treatment of the fish and the subsequent relation to the quality of the canned product were studied. There were not sufficiently defined relations on which to base quality predictions.

Bank Solvency and Funding Cost

Bank Solvency and Funding Cost PDF Author: Mr.Stefan W. Schmitz
Publisher: International Monetary Fund
ISBN: 1484300661
Category : Business & Economics
Languages : en
Pages : 46

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Book Description
This paper presents new evidence on the empirical relationship between bank solvency and funding costs. Building on a newly constructed dataset drawing on supervisory data for 54 large banks from six advanced countries over 2004–2013, we use a simultaneous equation approach to estimate the contemporaneous interaction between solvency and liquidity. Our results show that liquidity and solvency interactions can be more material than suggested by the existing empirical literature. A 100 bps increase in regulatory capital ratios is associated with a decrease of bank funding costs of about 105 bps. A 100 bps increase in funding costs reduces regulatory capital buffers by 32 bps. We also find evidence of non-linear effects between solvency and funding costs. Understanding the impact of solvency on funding costs is particularly relevant for stress testing. Our analysis suggests that neglecting the dynamic features of the solvency-liquidity nexus in the 2014 EU-wide stress test could have led to a significant underestimation of the impact of stress on bank capital ratios.

The Financial Crisis Inquiry Report, Authorized Edition

The Financial Crisis Inquiry Report, Authorized Edition PDF Author: United States. Financial Crisis Inquiry Commission
Publisher: Public Affairs
ISBN: 1610390415
Category : Business & Economics
Languages : en
Pages : 578

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Book Description
Examines the causes of the financial crisis that began in 2008 and reveals the weaknesses found in financial regulation, excessive borrowing, and breaches in accountability.

Designing Effective Macroprudential Stress Tests

Designing Effective Macroprudential Stress Tests PDF Author: Mr.Dimitri G. Demekas
Publisher: International Monetary Fund
ISBN: 1513513621
Category : Business & Economics
Languages : en
Pages : 34

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Book Description
Giving stress tests a macroprudential perspective requires (i) incorporating general equilibrium dimensions, so that the outcome of the test depends not only on the size of the shock and the buffers of individual institutions but also on their behavioral responses and their interactions with each other and with other economic agents; and (ii) focusing on the resilience of the system as a whole. Progress has been made toward the first goal: several models are now available that attempt to integrate solvency, liquidity, and other sources of risk and to capture some behavioral responses and feedback effects. But building models that measure correctly systemic risk and the contribution of individual institutions to it while, at the same time, relating the results to the established regulatory framework has proved more difficult. Looking forward, making macroprudential stress tests more effective would entail using a variety of analytical approaches and scenarios, integrating non-bank financial entities, and exploring the use of agent-based models. As well, macroprudential stress tests should not be used in isolation but be treated as complements to other tools and—crucially—be combined with microprudential perspectives.

The Transmission of Liquidity Shocks

The Transmission of Liquidity Shocks PDF Author: Mr.Philippe D Karam
Publisher: International Monetary Fund
ISBN: 1498348394
Category : Business & Economics
Languages : en
Pages : 38

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Book Description
We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to non-core deposits and wholesale funding, especially during the global financial crisis. This translates into a reduction in lending to households and non-financial corporates at home and abroad. The effect on domestic lending, however, is mitigated when banks (i) hold a larger buffer of liquid assets, (ii) diversify away from rating-sensitive sources of funding, and (iii) activate internal liquidity support measures. Foreign lending is significantly reduced during a crisis at home only for subsidiaries with weak funding self-sufficiency.

Permafrost

Permafrost PDF Author: Frederick J. Sanger
Publisher: National Academies
ISBN: 9780309027465
Category : Science
Languages : en
Pages : 1358

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Book Description


Collateral Frameworks

Collateral Frameworks PDF Author: Kjell G. Nyborg
Publisher: Cambridge University Press
ISBN: 1107155843
Category : Business & Economics
Languages : en
Pages : 345

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Book Description
The first book-length study of the importance of collateral frameworks in monetary policy, focusing on the Eurozone and euro crisis.

Bank Solvency and Funding Cost

Bank Solvency and Funding Cost PDF Author: Mr.Stefan W. Schmitz
Publisher: International Monetary Fund
ISBN: 1484300890
Category : Business & Economics
Languages : en
Pages : 46

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Book Description
This paper presents new evidence on the empirical relationship between bank solvency and funding costs. Building on a newly constructed dataset drawing on supervisory data for 54 large banks from six advanced countries over 2004–2013, we use a simultaneous equation approach to estimate the contemporaneous interaction between solvency and liquidity. Our results show that liquidity and solvency interactions can be more material than suggested by the existing empirical literature. A 100 bps increase in regulatory capital ratios is associated with a decrease of bank funding costs of about 105 bps. A 100 bps increase in funding costs reduces regulatory capital buffers by 32 bps. We also find evidence of non-linear effects between solvency and funding costs. Understanding the impact of solvency on funding costs is particularly relevant for stress testing. Our analysis suggests that neglecting the dynamic features of the solvency-liquidity nexus in the 2014 EU-wide stress test could have led to a significant underestimation of the impact of stress on bank capital ratios.

Economics—Advances in Research and Application: 2012 Edition

Economics—Advances in Research and Application: 2012 Edition PDF Author:
Publisher: ScholarlyEditions
ISBN: 1464990735
Category : Business & Economics
Languages : en
Pages : 1468

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Book Description
Economics—Advances in Research and Application: 2012 Edition is a ScholarlyEditions™ eBook that delivers timely, authoritative, and comprehensive information about Economics. The editors have built Economics—Advances in Research and Application: 2012 Edition on the vast information databases of ScholarlyNews.™ You can expect the information about Economics in this eBook to be deeper than what you can access anywhere else, as well as consistently reliable, authoritative, informed, and relevant. The content of Economics—Advances in Research and Application: 2012 Edition has been produced by the world’s leading scientists, engineers, analysts, research institutions, and companies. All of the content is from peer-reviewed sources, and all of it is written, assembled, and edited by the editors at ScholarlyEditions™ and available exclusively from us. You now have a source you can cite with authority, confidence, and credibility. More information is available at http://www.ScholarlyEditions.com/.