On the Credibility of Bail-ins. Has the Single Resolution Mechanism become more credible for European Banks after the Banco Popular Bail-in?

Business & Finance
Cover of the book On the Credibility of Bail-ins. Has the Single Resolution Mechanism become more credible for European Banks after the Banco Popular Bail-in? by Mark Feiler, Studylab
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Mark Feiler ISBN: 9783668594425
Publisher: Studylab Publication: December 14, 2017
Imprint: Studylab Language: English
Author: Mark Feiler
ISBN: 9783668594425
Publisher: Studylab
Publication: December 14, 2017
Imprint: Studylab
Language: English

During the recent financial crisis, resolution mechanisms proved to be insufficient to wind down systemically important financial institutions. Especially the bankruptcy of Lehman Brothers led to severe macroeconomic instability. Afterwards, national and supranational authorities implemented new regulations for preventing and managing bank failures, among them the Single Resolution Mechanism (SRM) in the European Banking Union. The failure of Banco Popular in June 2017 put the SRM to the first test. As the resolution mechanism apparently worked smoothly, and did not contaminate other banks or even the non-banking industry, the question arises whether the resolution mechanism has consequently become more credible for bank investors. By analyzing market reactions to the Banco Popular bail-in, the author primarily aims to answer this question. Hypothetically, if investors perceive the bail-in as a credible commitment by the Single Resolution Board, the implicit insurance should cease. For this reason, investors would demand higher, risk-reflecting interest rates, impairing the bank's profitability. Therefore, in the case that this is the dominant effect, a bank's share price should fall. In this book: - Single Resolution Mechanism; - European Banking Union; - financial industry regulations; - bail-in and bail-out; - too big to fail banks; - Banco Popular

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

During the recent financial crisis, resolution mechanisms proved to be insufficient to wind down systemically important financial institutions. Especially the bankruptcy of Lehman Brothers led to severe macroeconomic instability. Afterwards, national and supranational authorities implemented new regulations for preventing and managing bank failures, among them the Single Resolution Mechanism (SRM) in the European Banking Union. The failure of Banco Popular in June 2017 put the SRM to the first test. As the resolution mechanism apparently worked smoothly, and did not contaminate other banks or even the non-banking industry, the question arises whether the resolution mechanism has consequently become more credible for bank investors. By analyzing market reactions to the Banco Popular bail-in, the author primarily aims to answer this question. Hypothetically, if investors perceive the bail-in as a credible commitment by the Single Resolution Board, the implicit insurance should cease. For this reason, investors would demand higher, risk-reflecting interest rates, impairing the bank's profitability. Therefore, in the case that this is the dominant effect, a bank's share price should fall. In this book: - Single Resolution Mechanism; - European Banking Union; - financial industry regulations; - bail-in and bail-out; - too big to fail banks; - Banco Popular

More books from Studylab

Cover of the book Desmond Tutu als Mentor der Versöhnung. Die Aufarbeitung der Apartheid durch die Wahrheits- und Versöhnungskommission (TRC) in Südafrika by Mark Feiler
Cover of the book Chancen und Grenzen transnationaler Familienverbünde by Mark Feiler
Cover of the book Smarte Arbeit. Die Digitale Fitness der Generation 50plus und ihre Bedeutung für die Wettbewerbsfähigkeit im demografischen Wandel by Mark Feiler
Cover of the book Auswirkungen von Industrie 4.0 auf das Controlling by Mark Feiler
Cover of the book Entscheidende Emotionen für den Kauferfolg. Über die Zusammenführung visueller und sprachlicher Stilmittel in der Fernsehwerbung by Mark Feiler
Cover of the book Legitimität, Autorität und Propaganda des Islamischen Staates. Eine Videoanalyse by Mark Feiler
Cover of the book Wie wichtig ist Achtsamkeit in der familiären Kindererziehung? Eine Untersuchung zur subjektiven Sicht der Eltern by Mark Feiler
Cover of the book Spielend Kompetenzen entwickeln. Serious Games in der beruflichen Aus- und Weiterbildung by Mark Feiler
Cover of the book E-Mobilität und E-Parkhäuser als Zukunftslösung. Wie kann eine Infrastruktur für mehr erneuerbare Energien auf den Straßen geschaffen werden? by Mark Feiler
Cover of the book Sport und Männlichkeit. Die Konstruktion von Männlichkeit im Fußball by Mark Feiler
Cover of the book Kann die Unterrichtsqualität durch interaktive Whiteboards verbessert werden? by Mark Feiler
Cover of the book Die Bundesrepublik Deutschland als Kind des Kalten Krieges by Mark Feiler
Cover of the book Applied Neuroleadership Models in Project and Change Management by Mark Feiler
Cover of the book Der Halal-Markt in Deutschland. Überblick und zukünftige Potentiale der Halal-Zertifizierung by Mark Feiler
Cover of the book Alles Geben? Workaholics in Profisport und Top-Management by Mark Feiler
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy