Tag Archives: Banking crisis

ECB Market Intervention: Covered Bond Purchasing Programme (CBPP)

Posted on February 22, 2012 by fmpdea

Having looked at the tools available to the ECB, at its balance sheet, and at the transmission of monetary policy into the interbank lending market.after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like … Continue reading →

Posted in Aides Memoire, Banking, ECB, Economic Concepts | Tagged Bank Lending Survey, Banking crisis, CBPP, CBPP1, CBPP2, Cointegration, Covered Bond Purchasing Programme, Covered Bonds, ECB, France, Germany, iBoxx, iShare, Italy, Monetary Policy Transmission, Portugal, Spain, Stabilisation | 10 Comments

ECB: Monetary Policy Transmission – Interest Rate Channel System, Reserves & the Interbanking Market

Posted on February 17, 2012 by fmpdea

Having looked at the tools available to the ECB and at its balance sheet, after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like to turn my attention to the actual operation of monetary … Continue reading →

Posted in Aides Memoire, Banking, ECB | Tagged Aides Memoire, Banking, Banking crisis, CDS, Collateral, Counter-party risk, Debt auctions, debt repurchases, Deposit Facility, ECB, EONIA, EUREPO, EURIBOR, interbanking, interbanking rates, intermediation, Liquidity Risk, LTROs, Marginal Lending Facility, Maturity, MRO, OIS, Overnight Index Swap, Reserve Base, Reserve Ratio, Reserve requirements, Reserves, Risk free interest rate, Sovereign Debt Crisis, Term Premium, Term Spread, Yield curve | Leave a comment

Weekly Bond Yield developments in the Euro Area (W4.2012): Greece Negotiations and Portuguese Yields

Posted on January 29, 2012 by fmpdea

In the week that that passed the Euro-Zone economy was marked by an emphasis (of the media and of analysts) on positive data releases, both in Europe and in the USA. On the down side, fruitless Greek PSI negotiations caused … Continue reading →

Posted in Weekly Bond Yield developments in the Euro Area | Tagged Banking crisis, Debt restructure, ECB, European Fiscal Federalism, France, Germany, Greece, Ireland, LTRO, Portugal, Sovereign Debt Crisis, Spain | Leave a comment

Leverage and Balance Sheet Management: Reserve Ratios and VaR

Posted on January 26, 2012 by fmpdea

Having previously considered how banks intermediate between investors and their investments, FRB and bank runs, and having shown that overlending is likely to be an equilibrium result of the financial market, I now turn my attention to how banks, among … Continue reading →

Posted in Aides Memoire, Banking, Economic Concepts | Tagged Aides Memoire, Assets, Balance Sheet, Banking, Banking crisis, Brokers/Dealers, Commercial banking, Credit Ratios, Housing, Investment Banking, Leverage, Liabilities, Monetary Economics, Value at Risk, VaR | 1 Comment

Market Volatility: with thanks to True Economics

Posted on January 23, 2012 by fmpdea

True Economics, has very interesting charts of 3-sigma-plus stock market volatility accross the UK, France, Germany, the US and world stock markets. To argue that the ongoing period of volatility represents a repricing of stock markets, associated with the financial … Continue reading →

Posted in A € for your Thoughts, Aides Memoire, Economic Concepts, Sovereign debt Crisis | Tagged Banking crisis, Mandelbrot, Normal Distribution, Sovereign Debt Crisis, Stable distribution, Stock Market Returns, Voltaility | Leave a comment

Week Ahead Calendar: 20/01/2012 to 27/01/2012 – Schedules and Hopes

Posted on January 23, 2012 by fmpdea

Please find below a list of the eventful days ahead. The main sources are Unicredit’s Weekly Focus, Forex Trading weekly calendar, the EU’s national issuance calendar and many others, all of which I advise you to consult directly. I found Unicredit’s to … Continue reading →

Posted in Week Ahead | Tagged Banking, Banking crisis, Calendars, Confidence, Monetary Economics, Week Ahead | Leave a comment

Asymmetries of Information, Overlending and the Output gap

Posted on January 6, 2012 by fmpdea

I have recently discussed Banking intermediation, FRB and bank-runs in the context of the Diamond 1997 model in line with my effort to understand the banking/financial sector and record some of the knowledge I acquired over the years. When, in … Continue reading →

Posted in Aides Memoire, Banking, Economic Concepts | Tagged Asymmetries of information, Banking, Banking crisis, Commercial banking, De Meza and Webb 1987, financial insights, Financial markets, Modigliani and Jaffee 1969, Monetary Economics, Output gap, Overinvestment, Overlending, Stiglitz, Stiglitz and Webb 1981 | Leave a comment

The end (of the crisis) is nigh! – On treaty change and Lenders of Last Resort

Posted on November 28, 2011 by fmpdea

Another week and another bout of hysteria, as banks warn about the risk of a Euro-breakup due to the upcoming banking crisis. May be that’s to over do it, but clearly it increases the ever unquantifiable risk of that happening. … Continue reading →

Posted in Current Events, ECB | Tagged Banking crisis, Community Method, debt repurchases, ECB, France, Germany, Greece, Intergovernmentalism, Ireland, Italy, Monetary Economics, Portugal, Sovereign Debt Crisis, Spain | 1 Comment

Could Bini Smaghi’s resignation be a condition for French support of Italian Bailout?

Posted on November 10, 2011 by fmpdea

After much discussion on the sidelines of the Euro-zone sovereign debt crisis, the Italian member of the ECB’s Executive Board, Lorenzo Bini Smaghi has resigned his position, finally opening the way for another French executive. This has been a long … Continue reading →

Posted in ECB, European Interdependences, Sovereign debt Crisis, Weekly Bond Yield developments in the Euro Area | Tagged Banking crisis, Bini Smaghi, ECB, France, Italy, Sovereign Debt Crisis | Leave a comment

Euro update (21): Round up of events in Q2

Posted on June 27, 2011 by fmpdea

I am back from my break. In my 3 month blogging absence, Portugal, Japan, North Africa, the Middle East and Greece figured prominently on the news. The following is a fairly chronological list of the events. 1)The Portuguese government messed … Continue reading →

Posted in Current Events, Euro-zone Update | Tagged Banking crisis, ECB, Greece, Japan, Libya, Portugal, Sovereign Debt Crisis | Leave a comment