Where Have All the Profits Gone? European Bank Profitability Over the Financial Cycle

Where Have All the Profits Gone? European Bank Profitability Over the Financial Cycle
Author: Ms.Enrica Detragiache
Publisher: International Monetary Fund
Total Pages: 34
Release: 2018-05-09
Genre: Business & Economics
ISBN: 1484354540
GET BOOK

The paper investigates EU banks’ profitability through the recent financial cycle using banklevel balance sheet and income statement data. We find that banks that were more successful at protecting their profits had a less pronounced deterioration in loan quality and a larger improvement in cost efficiency. They also downsized their assets more aggressively during the crisis, and reduced reliance on wholesale funding more markedly post-crisis. Net interest margins remained broadly stable over the financial cycle, including post-crisis, and there is no clear evidence that aspects of bank business model, such as higher reliance on fees and commission income, were associated with better profitability post-crisis.

Mitigating the Deadly Embrace in Financial Cycles

Mitigating the Deadly Embrace in Financial Cycles
Author: Mr.Jaromir Benes
Publisher: International Monetary Fund
Total Pages: 26
Release: 2016-04-08
Genre: Business & Economics
ISBN: 148432305X
GET BOOK

This paper presents a new version of MAPMOD (Mark II) to study the effectiveness of macroprudential regulations. We extend the original model by explicitly modeling the housing market. We show how household demand for housing, house prices, and bank mortgages are intertwined in what we call a deadly embrace. Without macroprudential policies, this deadly embrace naturally leads to housing boom and bust cycles, which can be very costly for the economy, as shown by the Global Financial Crisis of 2008-09.

Financial Cycles – Early Warning Indicators of Banking Crises?

Financial Cycles – Early Warning Indicators of Banking Crises?
Author: Ms. Sally Chen
Publisher: International Monetary Fund
Total Pages: 79
Release: 2021-04-29
Genre: Business & Economics
ISBN: 1513582305
GET BOOK

Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data from 59 advanced and emerging economies, we show that financial overheating can be detected in real time. Equity prices and output gap are the best leading indicators in advanced markets; in emerging markets, these are equity and property prices and credit gap. Moreover, aggregating this information flags financial crisis many years before the crisis. Lastly, we find that the length of financial cycles is of medium-term frequency, calling into question the longer frequency widely used in the estimation of countercyclical capital buffers.

Current Issues in Economics and Finance

Current Issues in Economics and Finance
Author: Bandi Kamaiah
Publisher: Springer
Total Pages: 227
Release: 2018-01-12
Genre: Business & Economics
ISBN: 9811058105
GET BOOK

This book discusses wide topics related to current issues in economic growth and development, international trade, macroeconomic and financial stability, inflation, monetary policy, banking, productivity, agriculture and food security. It is a collection of seventeen research papers selected based on their quality in terms of contemporary topic, newness in the methodology, and themes. All selected papers have followed an empirical approach to address research issues, and are segregated in five parts. Part one covers papers related to fiscal and price stability, monetary policy and economic growth. The second part contains works related to financial integration, capital market volatility and macroeconomic stability. Third part deals with issues related to international trade and economic growth. Part four covers topics related to productivity and firm performance. The final part discusses issues related to agriculture and food security. The book would be of interest to researchers, academicians as a ready reference on current issues in economics and finance.

Financial Dynamics and Business Cycles

Financial Dynamics and Business Cycles
Author: Willi Semmler
Publisher: M.E. Sharpe
Total Pages: 288
Release: 1991-06
Genre: Business & Economics
ISBN: 9780765635174
GET BOOK

Providing an analysis of the Tibet question, this work explores essential themes and issues concerning modern Tibet. It considers such topics as representations and sovereignty, economic development and political conditions, the exile movement and human rights, historical legacies and international politics, identity issues and the local society.

How Do Business and Financial Cycles Interact?

How Do Business and Financial Cycles Interact?
Author: Mr.Marco Terrones
Publisher: International Monetary Fund
Total Pages: 56
Release: 2011-04-01
Genre: Business & Economics
ISBN: 1455233161
GET BOOK

This paper analyzes the interactions between business and financial cycles using an extensive database of over 200 business and 700 financial cycles in 44 countries for the period 1960:1-2007:4. Our results suggest that there are strong linkages between different phases of business and financial cycles. In particular, recessions associated with financial disruption episodes, notably house price busts, tend to be longer and deeper than other recessions. Conversely, recoveries associated with rapid growth in credit and house prices tend to be stronger. These findings emphasize the importance of developments in credit and housing markets for the real economy.