A Reflection on Banks Problems and Identification Approaches, an Empirical Assessment
8 Pages Posted: 25 Jul 2018
Date Written: June 14, 2018
Abstract
Most Banks independently enhanced their liquidity risk management policies one way or the other. In doing so, these banks out of neglect did not take into accounts the associated externalities which were created by way of some of the choice of decision the took with regards to the general risk component within the financial system. In view of this we try to reflect on the banks problems caused by their choice of decision empirically. On the other hand, there may be incentives, associated for instance to the role of the main regulator, for banks to enhance their choices not rigorously at the individual level, but appealing as an alternative in collective risk taking strategies, which may increase systemic risk.
Keywords: Liquidity, Banks, risk, regulation
JEL Classification: E00, E02, G28
Suggested Citation: Suggested Citation