Aggregate liquidity can be seen as the rate of growth of financial sector balance sheets.doi:10.1016/j.jfi.2008.02.003Hyun Song ShinesJournal of Financial IntermediationShin, H. S. 2008."Risk and Liquidity in a System Context," Journal of Financial Inter- mediation Vol. 17 (3): 315-329....
Within the context of our model, liquidity requirements are preferable to capital requirements, as tightening liquidity requirements lowers the likelihood of systemic distress without impairing consumption growth. In addition, we find that intermediate ranges of risk-free asset supply achieve higher welfare...
Unsystematic risk is the risk that is unique to a specific company or industry. It's also known as nonsystematic risk,specific risk, diversifiable risk, or residual risk. In the context of an investment portfolio, unsystematic risk can be reduced through diversification—while systematic risk is ...
We relate this measure to consumer's endowments and attributes and to measures of background risk and liquidity constraints. We find that risk aversion is a decreasing function of the endowment—thus rejecting CARA preferences. We estimate the elasticity of risk aversion to consumption at about 0.7...
A front-to-back market, counterparty credit risk, and liquidity risk-aligned architecture and models that support data quality (such as risk systems and front-office systems using the same data or even integrated data) and that also reduce discrepancies and manual adjustments and checks required in...
To combat liquidity risk, banks must strike an appropriate balance between their liquid assets and liabilities, diversify their funding sources, and develop contingency funding plans. By taking these proactive measures, banks can improve their ability to meet short-term financial obligations, even when...
Modeling directly with imbalanced samples would result in a bias towards the majority class, leading to a loss of model warning capability. In the context of imbalanced financial distress warning datasets, current research primarily focuses on improvements at both the data and algorithm levels. Data-...
Maintain Liquidity When markets are volatile, you may have trouble selling or buying an asset within your price range, especially when you need to exit a position in a hurry. If the market is crashing,liquiditymay be difficult no matter what type of stocks you buy. Under more normal conditio...
VaR, size, liquidity, and profitability are important systemic risk determinants. • Systemic risk across frequencies depends on different sets of explanatory variables. Abstract The Australian financial sector (AFS) is highly concentrated and interconnected. Besides, Australian banks' lending portfolios ...
Treasury, the Federal Reserve, and the FDIC to take a series of measures, including full deposit insurance, to maintain public confidence in the banking system. Liquidity hoarding refers to a measurement of the overall liquidity level held by banks and is essentially an asset-liability adjustment ...