Bank Solvency and Funding Cost /

Understanding the interaction between bank solvency and funding cost is a crucial pre-requisite for stress-testing. In this paper we study the sensitivity of bank funding cost to solvency measures while controlling for various other measures of bank fundamentals. The analysis includes two measures o...

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Xehetasun bibliografikoak
Egile nagusia: Aymanns, Christoph
Beste egile batzuk: Caceres, Carlos, Daniel, Christina, Schumacher, Liliana
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2016.
Saila:IMF Working Papers; Working Paper ; No. 2016/064
Sarrera elektronikoa:Full text available on IMF
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100 1 |a Aymanns, Christoph. 
245 1 0 |a Bank Solvency and Funding Cost /  |c Christoph Aymanns, Carlos Caceres, Christina Daniel, Liliana Schumacher. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2016. 
300 |a 1 online resource (30 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Understanding the interaction between bank solvency and funding cost is a crucial pre-requisite for stress-testing. In this paper we study the sensitivity of bank funding cost to solvency measures while controlling for various other measures of bank fundamentals. The analysis includes two measures of bank funding cost: (a) average funding cost and (b) interbank funding cost as a proxy of wholesale funding cost. The main findings are: (1) Solvency is negatively and significantly related to measures of funding cost, but the effect is small in magnitude. (2) On average, the relationship is stronger for interbank funding cost than for average funding cost. (3) During periods of stress interbank funding cost is more sensitive to solvency than in normal times. Finally, (4) the relationship between funding cost and solvency appears to be non-linear, with higher sensitivity of funding cost at lower levels of solvency. 
538 |a Mode of access: Internet 
700 1 |a Caceres, Carlos. 
700 1 |a Daniel, Christina. 
700 1 |a Schumacher, Liliana. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2016/064 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2016/064/001.2016.issue-064-en.xml  |z IMF e-Library