Economia
Financial meltdown blamed on risk models Web posted at: 2/14/2009 9:20:18 Source ::: FINANCIAL TIMES By Norma Cohen The failure of banks to count, manage and hedge their risks over the past decade is responsible both for the fantastic growth before 2007 and the crash that followed, according to the Bank of England’s director for financial stability. In a speech at a risk management conference yesterday, Andrew Haldane described how the world’s banking system found itself on the brink of collapse after a decade of self-congratulation at having conquered risk. The meltdown in money markets that followed the credit squeeze was an event that banks’ risk models showed could happen only once in the lifetime of the universe - once every 13.7bn years — Haldane said. Referring to economist John Maynard Keynes’ rule of thumb that it is better to be roughly right than precisely wrong. Banking losses now “lie anywhere between a very large number and an unthinkable one”, he said. In pinpointing reasons why the systems banks use to gauge how big their losses could be under worst-case scenarios were so wrong, Haldane noted that most are based on a very short-term view of the past.
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Financial Stability and Monetary Policy: How Closely Interlinked? by Frank Smets European Central Bank Abstract The recent financial crisis has again raised the question to what extent price-stability-oriented monetary policy frameworks should take...
- Eficiência Do Mercado Financeiro
Ignore the cranks: Orthodox economics can account for the 2008 financial crash by Andrew Lilico October 29, 2013, 12:53am ONE OF the more annoying false memes of recent years has been the notion that standard corporate finance...
- Basileia Iii - Regulamentação Do Capital No Setor Bancário
July 29, 2011 Policy Analysis no. 681 Capital Inadequacies: The Dismal Failure of the Basel Regime of Bank Capital Regulation The Basel regime is an international system of capital adequacy regulation designed to strengthen banks' financial health...
- Fraquesa Dos Bancos Americanos Continua
The Economist: "Far from improving, the funding profile of the Western banking system has been getting even sicker this year. Banks have been raising equity and long-term debt and gathering deposits, but in the grand scheme of things their efforts have...
- Corridas Bancárias Do Séc. Xxi
Corridas bancárias do séc. XXI são diferentes, como explica Tyler Cowen: "The new complication is that bank deposits are no longer the dominant form of modern short-term finance. The modern bank run means a rush to withdraw from money market funds,...
Economia
Modelo errado
Financial meltdown blamed on risk models Web posted at: 2/14/2009 9:20:18 Source ::: FINANCIAL TIMES By Norma Cohen The failure of banks to count, manage and hedge their risks over the past decade is responsible both for the fantastic growth before 2007 and the crash that followed, according to the Bank of England’s director for financial stability. In a speech at a risk management conference yesterday, Andrew Haldane described how the world’s banking system found itself on the brink of collapse after a decade of self-congratulation at having conquered risk. The meltdown in money markets that followed the credit squeeze was an event that banks’ risk models showed could happen only once in the lifetime of the universe - once every 13.7bn years — Haldane said. Referring to economist John Maynard Keynes’ rule of thumb that it is better to be roughly right than precisely wrong. Banking losses now “lie anywhere between a very large number and an unthinkable one”, he said. In pinpointing reasons why the systems banks use to gauge how big their losses could be under worst-case scenarios were so wrong, Haldane noted that most are based on a very short-term view of the past.
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- Estabilidade Financeira E Política Monetária
Financial Stability and Monetary Policy: How Closely Interlinked? by Frank Smets European Central Bank Abstract The recent financial crisis has again raised the question to what extent price-stability-oriented monetary policy frameworks should take...
- Eficiência Do Mercado Financeiro
Ignore the cranks: Orthodox economics can account for the 2008 financial crash by Andrew Lilico October 29, 2013, 12:53am ONE OF the more annoying false memes of recent years has been the notion that standard corporate finance...
- Basileia Iii - Regulamentação Do Capital No Setor Bancário
July 29, 2011 Policy Analysis no. 681 Capital Inadequacies: The Dismal Failure of the Basel Regime of Bank Capital Regulation The Basel regime is an international system of capital adequacy regulation designed to strengthen banks' financial health...
- Fraquesa Dos Bancos Americanos Continua
The Economist: "Far from improving, the funding profile of the Western banking system has been getting even sicker this year. Banks have been raising equity and long-term debt and gathering deposits, but in the grand scheme of things their efforts have...
- Corridas Bancárias Do Séc. Xxi
Corridas bancárias do séc. XXI são diferentes, como explica Tyler Cowen: "The new complication is that bank deposits are no longer the dominant form of modern short-term finance. The modern bank run means a rush to withdraw from money market funds,...