Jonathan Smith What was the root cause of the financial crisis? Ask any economist or banker and undoubtedly they will at some point mention leverage (see e.g. here, here and here). Yet when a capital requirement based on leverage — the leverage ratio requirement — was introduced, fierce criticism followed (see e.g. here and here). […]
[New post] The leverage ratio: a balance between risk and safety
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Older messages
[New post] Wir sind die Roboter: can we predict financial crises?
Friday, October 2, 2020
BankUnderground posted: " Kristina Bluwstein, Marcus Buckmann, Andreas Joseph, Miao Kang, Sujit Kapadia and Özgür Şimşek Financial crises are recurrent events in economic history. But they are as
[New post] Market fragility in the pandemic era
Monday, September 28, 2020
BankUnderground posted: " Gerardo Ferrara, Roberto Reno and Maria Flora Financial markets process orders faster now than ever before. However, they remain prone to occasional dysfunction where
[New post] Jump-starting an international currency
Monday, September 21, 2020
BankUnderground posted: " Saleem Bahaj and Ricardo Reis Only a handful of currencies are regularly used for cross-border payments: the euro, the yen, the pound, the yuan and, of course, the US
[New post] First-time buyers: how do they finance their purchases and what’s changed?
Wednesday, September 16, 2020
BankUnderground posted: " John Lewis and Fergus Cumming The changing nature of first-time buyers Average first-time buyer (FTB) house prices have risen by 60% over the past 15 years and
[New post] Informed trading in government bond markets
Tuesday, September 15, 2020
BankUnderground posted: " Robert Czech, Shiyang Huang, Dong Lou and Tianyu Wang Government bond yields serve as a benchmark for virtually all other rates in financial markets. But what factors
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