Market / Europ / Finance & Financial Regulation / Banks / capital markets / equity finance / financial intermediation / Financial system / resilience

Boosting the resilience of Europe's financial system in the coronavirus crisis

Posted On: Jul 17, 2020   |   Posted By: Bruegel

Boosting the resilience of Europe's financial system in the coronavirus crisis

Bank-based and market-based financial structures mobilise savings, allocate capital, price risks and absorb shocks in different ways. While banks conduct financial intermediation and bear risks on their balance sheets, markets channel resources directly from savers to borrowers, serving as platforms via which equity and debt securities are priced, distributed and traded. A key question is whether differences in financial structure are associated with systemic risk, which has implications for public policy efforts to sustain real economic activity.
The literature published after the Great Financial Crisis of 2008 generally speaks in favour of market-based financial systems. This is because financial crises are more severe in bank-based than in market-based financial structures. In bank-based structures, systemic risk may be greater because banks are highly leveraged and interconnected institutions, with sizable maturity mismatches on their balance sheets and direct linkages to...

Continue reading ...

 








Donald Trump officially nominates Judge Amy Coney Barrett to US Supreme Court

Donald Trump officially nominates Judge Amy Coney Barrett to US Supreme Court

Donald Trump has selected Judge Amy Coney Barrett as his nominee to the US Supreme Court to fill the seat left vacant following the death of Justice Ruth Bader Ginsberg. Trump... Read more ...

UFC 253 results: Israel Adesanya mauls Paulo Costa, retains middleweight title

UFC 253 results: Israel Adesanya mauls Paulo Costa, retains middleweight title

Not all undefeated records are created the same. Israel Adesanya reminded us of this Saturday night when he disposed off Paulo Costa in a battle of the unbeatens in the main... Read more ...

Falcons top pick Terrell placed on COVID-19 reserve list

Falcons top pick Terrell placed on COVID-19 reserve list

FLOWERY BRANCH, Ga. - The Atlanta Falcons placed first-round pick A.J. Terrell on the COVID-19 reserve list on Saturday, dealing another blow to the winless team's secondary... Read more ...

The Latest: 11th-seeded Goffin knocked out by Sinner

The Latest: 11th-seeded Goffin knocked out by Sinner

PARIS - The Latest on the opening day at the French Open: Read more ...

LIVE: President Trump reveals his Supreme Court nominee

LIVE: President Trump reveals his Supreme Court nominee

President Donald Trump is announcing his pick to fill the seat previously held by Justice Ruth Bader Ginsburg. Read more ...

NASA astronaut plans to cast her ballot from space station

NASA astronaut plans to cast her ballot from space station

“We consider it an honor to be able to vote from space,” NASA astronaut Kate Rubins said. Read more ...

What Amy Coney Barrett's Supreme Court Nomination Means For The 2020 Election

What Amy Coney Barrett's Supreme Court Nomination Means For The 2020 Election

The focus on the court could help energize conservatives in key states. Progressives are fired up, too - immediately after Saturday's announcement, Democrats tied Barrett to a... Read more ...

'It don't mean sh*t': LeBron James helps Lakers to NBA Finals. but remains...

'It don't mean sh*t': LeBron James helps Lakers to NBA Finals. but remains unimpressed until they actually win it

LeBron James says reaching the tenth NBA Finals of his career “don't mean shi*t” unless he can lead the Los Angeles Lakers to the title. James carried his team's load on... Read more ...

Local politicians react to President Trump's Supreme Court nomination

Local politicians react to President Trump's Supreme Court nomination

President Donald Trump nominated Judge Amy Coney Barrett to the Supreme Court on Saturday, capping a dramatic reshaping of the federal judiciary that will resonate for a... Read more ...

Brace for a bitter debate on America's religious freedom in Senate: Goodwin

Brace for a bitter debate on America's religious freedom in Senate: Goodwin

If Amy Coney Barrett is confirmed for the Supreme Court, the credit will go to President Trump for nominating her and the GOP Senate for producing the votes. But Barrett will... Read more ...