Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- BCBS (2)
- BIS (2)
- Basel III (2)
- Market liquidity (2)
- Wholesale funding (2)
-
- ABS (1)
- Asset-backed securities (1)
- Available stable funding (1)
- Bank for International Settlements (1)
- Basel I (1)
- Basel II (1)
- Buffers (1)
- CMBS (1)
- Capital reform (1)
- Capital requirements (1)
- Commercial mortgage-backed securities (1)
- Contagion (1)
- Credit markets (1)
- ECB (1)
- European Central Bank (1)
- Financial stability (1)
- G10 (1)
- Global Financial Crisis (1)
- HQLA (1)
- Herstatt (1)
- ICAAP (1)
- LCR (1)
- LTRO (1)
- Lending (1)
- Leverage Ratio (1)
Articles 1 - 5 of 5
Full-Text Articles in Political Economy
The European Central Bank's Three-Year Long-Term Refinancing Operations (Ecb Gfc), Aidan Lawson
The European Central Bank's Three-Year Long-Term Refinancing Operations (Ecb Gfc), Aidan Lawson
Journal of Financial Crises
The announcement of the three-year Long-Term Refinancing Operations (LTROs) by the European Central Bank (ECB) on December 8, 2011, signaled the beginning of the largest ECB market liquidity programs to date. Continued and increasing liquidity-related pressures in the form of ballooning financial market credit default swap (CDS) spreads, Euro-area volatility, and interbank lending rates prompted a much more forceful ECB response than what had been done previously. The LTROs, using a repurchase (repo) agreement auction mechanism, allowed any Eurozone financial institution to tap essentially unlimited funding at a fixed rate of just 1%. Because the three-year LTROs were so similar …
The Term Asset-Backed Securities Loan Facility (Talf) (U.S. Gfc), June Rhee
The Term Asset-Backed Securities Loan Facility (Talf) (U.S. Gfc), June Rhee
Journal of Financial Crises
In the fall of 2008, the securitization market, which was the major provider of credit for consumers and small businesses, came to a near halt. Investors in this market abandoned not only the residential mortgage-backed securities that triggered the financial crisis but also consumer and business asset-backed securities (ABS), which had a long track record of strong performance, and commercial mortgage-backed securities (CMBS). Also, the unprecedented widening of spreads for these securities rendered new issuance uneconomical, and the shutdown of the securitization market threatened to exacerbate the downturn in the economy.
On November 25, 2008, the Federal Reserve (the Fed) …
Market Liquidity Programs: Gfc And Before, June Rhee, Greg Feldberg, Ariel Smith, Andrew Metrick
Market Liquidity Programs: Gfc And Before, June Rhee, Greg Feldberg, Ariel Smith, Andrew Metrick
Journal of Financial Crises
The virulence of the Global Financial Crisis of 2007–09 (GFC) was explained in large part by the increased reliance of the global financial system on market-based funding and the lack of preexisting tools to address a disruption in that type of system. This paper surveys market liquidity programs (MLPs), which we define as government interventions in which the key motivation is to stabilize liquidity in a specific wholesale funding market that is under stress. Most of the MLPs surveyed in this paper were launched during and after the GFC, but two pre-GFC MLPs are included. A subsequent survey on MLPs …
Basel Iii B: Basel Iii Overview, Christian M. Mcnamara, Michael Wedow, Andrew Metrick
Basel Iii B: Basel Iii Overview, Christian M. Mcnamara, Michael Wedow, Andrew Metrick
Journal of Financial Crises
In the wake of the financial crisis of 2007-09, the Basel Committee on Banking Supervision (BCBS) faced the critical task of diagnosing what went wrong and then updating regulatory standards aimed at preventing it from occurring again. In seeking to strengthen the microprudential regulation associated with the earlier Basel Accords while also adding a macroprudential overlay, Basel III consists of proposals in three main areas intended to address 1) capital reform, 2) liquidity standards, and 3) systemic risk and interconnectedness. This case considers the causes of the 2007-09 financial crisis and what they suggest about weaknesses in the Basel regime …
Basel Iii A: Regulatory History, Christian M. Mcnamara, Thomas Piontek, Andrew Metrick
Basel Iii A: Regulatory History, Christian M. Mcnamara, Thomas Piontek, Andrew Metrick
Journal of Financial Crises
From the earliest efforts to mandate the amount of capital banks must maintain, regulators have grappled with how best to accomplish this task. Until the 1980s, regulation had been based largely on discretion and judgment. In the wake of two bank failures, the central bank governors of the G10 countries established the Basel Committee on Banking Supervision (BCBS) and in 1988, the BCBS introduced a capital measurement system, Basel I. The system represented a triumph of the fixed numerical approach, however, critics worried that it was too blunt an instrument. In 1999, the BCBS issued Basel II, a proposal to …