Format:
1 Online-Ressource (circa 34 Seiten)
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ISBN:
9781498300704
Series Statement:
IMF working paper WP/19, 43
Content:
We examine the spillover effects between sovereigns and banks in a model with a heterogeneous banking system. An increase in sovereign's default risk affects financial intermediaries through two channels in this model. First, banks' funding costs might increase, inducing higher interest rates on loans and bonds and a cut back in these assets. Second, financial regulator's risk-weighted asset framework would assign higher weights to lower quality assets, implying a portfolio rebalancing and more deleveraging. While capital adequacy requirements weaken the impact of shocks emerging from the real economy, they amplify the effect of shocks on banks' balance sheets
Additional Edition:
Erscheint auch als Druck-Ausgabe Tabarraei, Hamid Sovereigns and Financial Intermediaries Spillovers Washington, D.C. : International Monetary Fund, 2019 ISBN 9781498300704
Language:
English
Keywords:
Graue Literatur
DOI:
10.5089/9781498300704.001
URL:
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