Paradox of financial instability and credit risk formation

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26138077%3A_____%2F14%3A%230000694" target="_blank" >RIV/26138077:_____/14:#0000694 - isvavai.cz</a>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Paradox of financial instability and credit risk formation

Popis výsledku v původním jazyce

This paper focuses on the identification of sources of systematic risk which is one of the key tasks in conducting macroprudential policy in central banks. To succeed, the macroprudential analyses must be focused primarily on the identification of latentrisks being generated in the balance sheets of financial intermediaries and their clients. It may be rather difficult to distinguish normal cycle fluctuations and long-term trends from a dangerous financial cycle. In addition, the early identification of emerging systematic risk may be a complex issue since the analysts can be trapped into the paradox of financial instability. It means that sources of systematic risk may be increasing exactly when actual indicators of potential credit losses seem to bethe lowest. To explore the importance of the financial instability paradox, we estimate on historical data the sensitivity of banks´ balance sheets to adverse changes in macro fundamentals applying panel data methods to selected European

Název v anglickém jazyce

Paradox of financial instability and credit risk formation

Popis výsledku anglicky

This paper focuses on the identification of sources of systematic risk which is one of the key tasks in conducting macroprudential policy in central banks. To succeed, the macroprudential analyses must be focused primarily on the identification of latentrisks being generated in the balance sheets of financial intermediaries and their clients. It may be rather difficult to distinguish normal cycle fluctuations and long-term trends from a dangerous financial cycle. In addition, the early identification of emerging systematic risk may be a complex issue since the analysts can be trapped into the paradox of financial instability. It means that sources of systematic risk may be increasing exactly when actual indicators of potential credit losses seem to bethe lowest. To explore the importance of the financial instability paradox, we estimate on historical data the sensitivity of banks´ balance sheets to adverse changes in macro fundamentals applying panel data methods to selected European

Druh

O - Ostatní výsledky

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

<a href="/cs/project/GA13-08549S" target="_blank" >GA13-08549S: Pokrizová bankovní regulace a její dopad na ekonomickou aktivitu v malé exportně orientované ekonomice</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2014

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů