Reversal of financial market integration in Europe during the global financial crisis requires tools to measure and monitor banking sector stability. Banking sectors in Europe, especially in Central and Eastern countries, are characterized by a significant share of foreign capital and height level of concentration. This phenomenon may enhance the financial institutions to compete and probably t...

Cross-border banking has been important across Africa for a long time, with regional banks taking on a more prominent role only recently. This paper provides an overview over the literature of cross-border banking and financial deepening and inclusion, with a focus on Africa. It also offers suggestive evidence that it is critical to differentiate between different types of cross-border banks wh...

In November 2010, European Central Bank (ECB) the then Governor, Jean-Claude Trichet, opened the ECBs flagship annual Central Banking Conference. He challenged the scientific community to develop radically new approaches to understanding the economy: ‘When the crisis came, the serious limitations of existing economic and financial models immediately became apparent. Macro models failed to predi...

Good Morning. It is indeed my privilege to be addressing you today in this Conference in which officials from industry and banking sector are participating. Today, I want to reflect on some of the challenges and dilemmas that we face as regulators of the banking system. A few of these challenges and dilemmas are in the context of the rapidly evolving regulatory landscape in the aftermath of the...

There are many reasons to take a critical look at the practice's banking relationship(s)--technology advancements, security measures, improvements in available services, recent banking enhancements designed specifically for medical practices, the impact of the financial crisis on bank ratings and stability, changing practice needs, opportunities for operational automation at the practice--and i...

We investigate whether foreign ownership shields firms from liquidity constraints following a financial crisis. Recent crises in East Asia, Latin America, and Russia have been characterized both by large currency devaluations and widespread collapse of the banking sector. Although a currency devaluation should increase exporters’ competitiveness and investment, a collapsing banking system may d...

Deposit insurance was introduced in the United States during the Great Depression primarily to promote financial stability. Stability is enhanced because deposit insurance reduces the likelihood of a bank run. During its first four decades, deposit insurance appeared to work well as few banks failed. But in the 1980s, a wave of financial troubles in the banking and thrift industry exposed an un...

The purpose of this paper is to determine whether foreign bank presence has had a stabilizing or destabilizing effect on the Latin American banking sector. Our results suggest that, while "brick and mortar" operations of foreign banks in Latin American countries contribute to the reduction of the probability of a banking crisis, there is no significant effect of direct foreign lending initiated...

We investigate a banking system subject to repeated macroeconomic productivity shocks. By lowering the interest rates, the central bank can increase the intermediation margin, which fosters the recapitalization of banks. We show that without lowering interest rates, the banking system faces the risk of collapsing. When interest policy is aimed only at avoiding a banking collapse, the economy co...

In the light of the financial crisis, the subject we are dealing with has major priority and, as the agenda shows, is a very broad topic in terms of the issues it covers. Under discussion are questions about the effects of banking regulation as well as institutional aspects of how banking regulation should be organised. Above all, we should keep in mind that banking regulation should reflect th...