The global BlackRock Geopolitical Risk Indicator (BGRI) aims to capture overall market attention to geopolitical risks, as the line chart shows. The indicator is a simple average of our top-10 risks. The indicator sits at its highest level in a year. Markets are increasingly concerned about the range of risks on the horizon.
Illing and Liu, 2006 Illing M., Liu Y., Measuring financial stress in a developed country: An application to Canada, Journal of Financial Stability 2 (3) (2006) 243 – 265, 10.1016/j.jfs.2006.06.002. Google Scholar; Ivanková, 2012 Ivanková, K. (2012). Financial stability indicator predictability by support vector machines. In Proceedings of This paper examines the nexus between investor sentiment and the insurers’ financial stability and, in addition, the moderating role of negative market conditions on the aforementioned relationship. Using a sample from the property–casualty insurance sector of the developed markets, our findings are twofold. First, we find that investors exhibit rational buying behaviour, and lower Latest data at end-June 2022 show the aggregate corporate debt to earnings ratio for UK businesses had fallen to around 315% in 2022 Q2, below the pandemic peak of 345% and the GFC peak of nearly 370%. This reflects a fall in aggregate leverage and an increase in aggregate earnings over this year (Chart 2.3). Financial Stability Institute Bank for International Settlements CH-4002 Basel, Switzerland. Tel: +41 61 280 9989 Email (for general inquiries): fsi@bis.org Email (for inquiries related to FSI Connect): fsiconnect@bis.org Global Financial Stability Report for an analysis of housing finance and financial stability, and the October 2016 Fiscal Monitor for an analysis of private versus public sector debt. The main findings are as follows: • On average, an increase in household debt boosts growth in the short term but may give rise to macro-We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to
This paper describes the conceptual framework that guides assessments of financial stability risks for multilateral surveillance, as currently presented in the Global Financial Stability Report (GFSR). The framework emphasizes consistency in measuring financial vulnerabilities across countries and over time and offers a summary statistic to quantify aggregate financial stability risks. The two
The analysis of the relationship between bank competition and financial stability remains a controversial issue and widely discussed in the academic and political community. Using a sample of 117 listed banks in 16 European countries for the years 2011 to 2018, the article explores the impact of market power, measured by the Lerner index, on the bank stability, measured by distance-to-defaultDaily Updates of the Latest Projects & Documents. Theory suggests that the effect of banking market concentration on financial stability is mediated by several competing variables. Using a sample of 68 countries from .
View OFR's Bank Systemic Risk Monitor. OFFICE OF FINANCIAL RESEARCH. U.S. Department of the Treasury. 717 14th Street, NW. Washington, DC 20220. Careers. No FEAR Act. The Office of Financial Research (OFR) delivers high-quality financial data, standards, and analysis to promote financial stability. 1. Introduction. This study examine the impact of digital finance for financial inclusion and financial system stability. Focussing on digital finance, this article provides a discussion on digital finance and explores the impact of digital finance for financial inclusion and financial system stability - an issue which has not been addressed in the literature. countries.5 This could trigger a sharp reversal of capital flows and a decline in asset prices, with associated consequences for macro-financial stability.6 Beyond these near-term effects, increased financial fragmenta-tion may make countries more vulnerable to adverse domestic and external shocks by reducing opportuni-ties to diversify risk .