The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis
Autor(a) principal: | |
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Data de Publicação: | 2013 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://ciencia.iscte-iul.pt/public/pub/id/9963 http://hdl.handle.net/10071/9871 |
Resumo: | In the aftermath of the global financial meltdown, regulators initiated a process to strengthen the regulation of too-big-to-fail (TBTF) banks with two goals: first, to increase the ability of these banks to absorb future financial shocks and second, to weaken the market expectation of public support for these banks in the event of a future financial crisis, thereby reducing the moral hazard problem associated with TBTF banks. We use an event study approach to analyze the market reaction to the official designation of a list of banks as TBTF by the Financial Stability Board (FSB) (on November 4, 2011). We do not find abnormal returns surrounding the FSB public announcement, which indicates that identifying the TBTF banks did not reduce the moral hazard problem. |
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The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisisToo-big-to-failBanksRegulationIn the aftermath of the global financial meltdown, regulators initiated a process to strengthen the regulation of too-big-to-fail (TBTF) banks with two goals: first, to increase the ability of these banks to absorb future financial shocks and second, to weaken the market expectation of public support for these banks in the event of a future financial crisis, thereby reducing the moral hazard problem associated with TBTF banks. We use an event study approach to analyze the market reaction to the official designation of a list of banks as TBTF by the Financial Stability Board (FSB) (on November 4, 2011). We do not find abnormal returns surrounding the FSB public announcement, which indicates that identifying the TBTF banks did not reduce the moral hazard problem.Elsevier Science2015-09-25T17:01:27Z2013-01-01T00:00:00Z20132015-09-25T17:00:37Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://ciencia.iscte-iul.pt/public/pub/id/9963http://hdl.handle.net/10071/9871eng1042-4431Abreu, J. F.Gulamhussen, M.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-07-07T02:55:20Zoai:repositorio.iscte-iul.pt:10071/9871Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-07-07T02:55:20Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
title |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
spellingShingle |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis Abreu, J. F. Too-big-to-fail Banks Regulation |
title_short |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
title_full |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
title_fullStr |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
title_full_unstemmed |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
title_sort |
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis |
author |
Abreu, J. F. |
author_facet |
Abreu, J. F. Gulamhussen, M. |
author_role |
author |
author2 |
Gulamhussen, M. |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Abreu, J. F. Gulamhussen, M. |
dc.subject.por.fl_str_mv |
Too-big-to-fail Banks Regulation |
topic |
Too-big-to-fail Banks Regulation |
description |
In the aftermath of the global financial meltdown, regulators initiated a process to strengthen the regulation of too-big-to-fail (TBTF) banks with two goals: first, to increase the ability of these banks to absorb future financial shocks and second, to weaken the market expectation of public support for these banks in the event of a future financial crisis, thereby reducing the moral hazard problem associated with TBTF banks. We use an event study approach to analyze the market reaction to the official designation of a list of banks as TBTF by the Financial Stability Board (FSB) (on November 4, 2011). We do not find abnormal returns surrounding the FSB public announcement, which indicates that identifying the TBTF banks did not reduce the moral hazard problem. |
publishDate |
2013 |
dc.date.none.fl_str_mv |
2013-01-01T00:00:00Z 2013 2015-09-25T17:01:27Z 2015-09-25T17:00:37Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://ciencia.iscte-iul.pt/public/pub/id/9963 http://hdl.handle.net/10071/9871 |
url |
https://ciencia.iscte-iul.pt/public/pub/id/9963 http://hdl.handle.net/10071/9871 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1042-4431 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Elsevier Science |
publisher.none.fl_str_mv |
Elsevier Science |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
mluisa.alvim@gmail.com |
_version_ |
1817546351435579392 |