What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

Diemer, Michael; Vollmer, Uwe

doi:10.1007/s40822-015-0026-5

Cited by 7 publications

(5 citation statements)

References 75 publications

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“…Although the empirical results could not provide convincing evidence to support the role of policy rate cuts to boost bank lending, it does not mean that the time-line policy intervention is ineffective but it raises the concern about the pass-through of policy rate cuts to borrowing cost. Moreover, an individual measure may not generate significant effects individually (Diemer & Vollmer, 2015), therefore a joint measure and comprehensive analysis of policy interventions and international cooperation in bank supervision should be examined in further research.…”

Section: Discussionmentioning

confidence: 99%

Macro-financial linkages and bank behaviour: evidence from the second-round effects of the global financial crisis on East Asia

2016

Eurasian Econ Rev

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This paper studies the link between macro-financial variability and bank behaviour, which justifies the second-round effects of the global financial crisis on East Asia. Following Gallego et al. (The impact of the global economic and financial crisis on Central Eastern and South Eastern Europe (CESEE) and Latin America, 2010), the second round effects are defined as the adverse feedback loop from the slumps in economic activities and sharp financial market deterioration, which may influence the financial performance of bank, inter alia via deteriorating credit quality, declining profitability and increasing problems in retaining necessary capitalization. Differentiating itself from other research, this study stresses adjustments in four dimensions of bank performance and behaviour: asset quality, profitability, capital adequacy, and lending behaviour, assuming that any change in a bankspecific characteristic is induced by endogenous adjustments of the others. The empirical results based on partial adjustment models and two-step system GMM estimation show that bank's adjustment behaviour is subject to the variation in the macro-financial environment and the stress condition in the global financial market. There is no convincing evidence to support the effectiveness of policy rate cut to boots bank lending and to avoid a financial accelerator effect.

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Section: Discussionmentioning

confidence: 99%

Macro-financial linkages and bank behaviour: evidence from the second-round effects of the global financial crisis on East Asia

2016

Eurasian Econ Rev

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“…Such actions may facilitate further investment and facilitate raising capital to support economic activity. The role of state policy in the process of recovery from the crisis is pointed out by Diemer and Vollmer ( 2015 ). They compare Japan with the Nordic countries of Norway, Finland and Sweden.…”

Section: Literature Reviewmentioning

confidence: 99%

A survival analysis in the assessment of the influence of the SARS-CoV-2 pandemic on the probability and intensity of decline in the value of stock indices

Bieszk‐Stolorz

Dmytrów

2021

Eurasian Econ Rev

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The aim of the study is to assess the strength of the world stock exchanges reaction to the SARS-CoV-2 coronavirus pandemic at the turn of 2019–2020. We analyze the risk and intensity of the decline in the values of the basic stock indices by means of selected methods of survival analysis. The spreading pandemic within a few months covered all continents and had a significant impact on the socio-economic situation of all countries. We studied the time of the 20% drop in stock market indices. This is a value that is taken as a sign of a crisis. In order to assess the probability of indices’ value decrease, we use the Kaplan–Meier’s estimator. We determine the risk of decline by means of a logit model and the intensity of the decline by means of an empirical hazard estimator and the Cox proportional hazard model. The intensity and risk of the decline of stock indices varied from continent to continent. The obtained results show that the intensity is highest in the fourth and eighth week after the peak and is the highest on European exchanges and then American and Asian exchanges (including Australia). The risk of falling the stock indices’ prices is the highest in America, followed by Europe, Asia and Australia, and lowest in Africa. Half of the analyzed indices record a 20% drop in value after 52 days (median duration). The study is a prelude to further analyses related to the crisis and the normalization of the situation on world stock exchanges. It allows to learn about the impact of the pandemic on the economic situation and to detect the differences between the continents.

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“…Such actions may facilitate further investment and facilitate raising capital to support economic activity. The role of state policy in the process of recovery from the crisis was pointed out by Diemer and Vollmer (2015). They compared Japan with the Nordic countries: Norway, Finland and Sweden.…”

Section: Literature Reviewmentioning

confidence: 99%

Survival analysis in assessment of influence of the SARS-CoV-2 pandemic on probability and intensity of decline in the value of stock indices

Bieszk‐Stolorz

Dmytrów

2020

Preprint

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The aim of the study is to assess the strength of the world stock exchanges reaction to the SARS-CoV-2 coronavirus pandemic at the turn of 2019-2020. The risk and intensity of the decline in the values of the basic stock indices were analysed. The spreading pandemic within a few months covered all continents and had a significant impact on the socio-economic situation of all countries. The study used methods of duration analysis. The time of the 20% drop in stock market indices was studied. This is a value that is taken as a sign of crisis. Kaplan-Meier's estimator was used to assess the probability of indices' value decrease. The risk of decline was determined by means of a logit model and the intensity of the decline was determined by means of an empirical hazard estimator and a Cox proportional hazard model. The intensity and risk of decline of stock indices varied from continent to continent. The intensity was highest in the fourth and eighth week after the peak and was highest on European exchanges and then American and Asian exchanges (including Australia). The risk of falling stock indices was highest in America, followed by Europe, Asia and Australia, and lowest in Africa. Half of the analysed indices recorded a 20-percent drop in value after 52 days (median duration). The study is a prelude to further analyses related to the crisis and the normalisation of the situation on world stock exchanges. It allows to learn about the impact of the pandemic on the economic situation and to detect differences between the continents. The methods from the survival analysis are used in the study to assess the impact of the pandemic on the intensity and risk of decline in stock exchange indices.

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What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

Cited by 7 publications

References 75 publications

Macro-financial linkages and bank behaviour: evidence from the second-round effects of the global financial crisis on East Asia

Macro-financial linkages and bank behaviour: evidence from the second-round effects of the global financial crisis on East Asia

A survival analysis in the assessment of the influence of the SARS-CoV-2 pandemic on the probability and intensity of decline in the value of stock indices

Survival analysis in assessment of influence of the SARS-CoV-2 pandemic on probability and intensity of decline in the value of stock indices

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