Summary:
Recall this post from six years ago. Òscar Jordà, Björn Richter, Moritz Schularick, and Alan M. Taylor suggest that higher bank capital ratios help stabilize the financial system ex post but not ex ante, and that illiquidity breeds fragility.
Topics:
Dirk Niepelt considers the following as important: Bank failure, Insolvency, Liquidity, Notes, Solvency
This could be interesting, too:
Recall this post from six years ago. Òscar Jordà, Björn Richter, Moritz Schularick, and Alan M. Taylor suggest that higher bank capital ratios help stabilize the financial system ex post but not ex ante, and that illiquidity breeds fragility.
Topics:
Dirk Niepelt considers the following as important: Bank failure, Insolvency, Liquidity, Notes, Solvency
This could be interesting, too:
Dirk Niepelt writes “Dunkle Perspektiven: Wenn auch die UBS gerettet werden müsste (Chilling UBS Rescue Scenario),” SRF, 2023
Dirk Niepelt writes “Digital Euro: An Assessment of the First Two Progress Reports,” European Parliament, 2023
Dirk Niepelt writes The Economist on CBDC—and SVB
Dirk Niepelt writes SNB Strategy Update
Recall this post from six years ago. Òscar Jordà, Björn Richter, Moritz Schularick, and Alan M. Taylor suggest that higher bank capital ratios help stabilize the financial system ex post but not ex ante, and that illiquidity breeds fragility.