Скачать с ютуб CGF Seminar - Did Post-Crisis Government Bailouts Reduce Tail Systemic Risk in European Banks? в хорошем качестве

CGF Seminar - Did Post-Crisis Government Bailouts Reduce Tail Systemic Risk in European Banks?

This seminar was delivered on Wednesday, 7 June 2023 as part of the CGF Seminar series 2022-2023 Full title: Did Post-Crisis Government Bailouts Reduce Tail Systemic Risk in European Banks? Presenters: Professor Victor Murinde, SOAS University of London; Samuel Fosu, University of Sussex, UK Chair: Prof. Kemi Yekini, SOAS University of London Abstract We investigate whether government bailouts, post the global financial crisis (2007-08), were helpful in reducing systemic risk in European banks. We focus on the distinguishing features of European banks as they differ from their US counterparts in terms of concentration, liquidity and capital ratios. We apply multivariate extreme value theory (EVT) in measuring systemic risk that has never been used in this literature. We invoke difference-in-difference methodology to examine the impact of bailout programmes on systemic risk in bailout banks versus non-bailout banks. We find that the bailout packages attenuated the transmission of systemic risk to European banks for both large and small banks and for high liquid and low liquid banks. However, pronounced reduction in systemic risk is only associated with highly capitalised banks. Our findings are robust to endogeneity issue and selection bias and offer policy implications regarding the usefulness of bailout programmes for financial stability. Co-authors: Sajid M. Chaudhry, Aston University, UK; Samuel Fosu, University of Sussex, UK; Wasim Ahmad, Cranfield University, UK