Bankers underestimate need to recapitalise: ECB paper

ecb-frankfurt

A European Central Bank paper published on Wednesday shows negative externalities associated with episodes of adverse shocks often leave market participants undercapitalised.

Anton Korinek, the paper's author, analyses the efficiency of risk-taking decisions in an economy that is prone to systemic risk by examining the financial amplification effects that occur in response to strong adverse shocks. Korinek says a negative aggregate shock often forces bankers to sell some of their asset holdings

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: