Abstract

http://ssrn.com/abstract=1605182
 
 

References (12)



 
 

Citations (34)



 


 



An Assessment of Financial Sector Rescue Programmes


Thomas Faeh


Bank for International Settlements (BIS)

Giuseppe Grande


Bank of Italy

Corrinne Ho


Bank for International Settlements

Michael R. King


University of Western Ontario - Richard Ivey School of Business

Aviram Levy


Bank of Italy

Fabio Panetta


Bank of Italy

Federico Maria Signoretti


Bank of Italy

Marco Taboga


Bank of Italy

Andrea Zaghini


Bank of Italy

July 10, 2009

Bank of Italy Occasional Paper No. 47

Abstract:     
We analyse the wide array of rescue programmes adopted in several countries, following Lehman Brothers’ default in September 2008, in order to support banks and other financial institutions. We first provide an overview of the programmes, comparing their characteristics, magnitudes and participation rates across countries. We then consider the effects of the programmes on banks’ risk and valuation, looking at the behaviour of CDS premia and stock prices. We then proceed to analyse the issuance of government guaranteed bonds by banks, examining their impact on banks’ funding and highlighting undesired effects and distortions. Finally, we briefly review the recent evolution of bank lending to the private sector. We draw policy implications, in particular as regards the way of mitigating the distortions implied by such programmes and the need for an exit strategy.

Number of Pages in PDF File: 80

Keywords: bank asset guarantees, capital injection, banks, financial sector, financial crisis, bank consolidation, bank mergers and acquisitions, event studies, government guaranteed bonds, credit crunch, exit strategy

JEL Classification: E58, E65, G14, G18, G21, G28, G32, G34

working papers series


Download This Paper

Date posted: May 15, 2010 ; Last revised: October 28, 2010

Suggested Citation

Faeh, Thomas and Grande, Giuseppe and Ho, Corrinne and King, Michael R. and Levy, Aviram and Panetta, Fabio and Signoretti, Federico Maria and Taboga, Marco and Zaghini, Andrea, An Assessment of Financial Sector Rescue Programmes (July 10, 2009). Bank of Italy Occasional Paper No. 47. Available at SSRN: http://ssrn.com/abstract=1605182 or http://dx.doi.org/10.2139/ssrn.1605182

Contact Information

Thomas Faeh
Bank for International Settlements (BIS) ( email )
Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland
Giuseppe Grande
Bank of Italy ( email )
Via Nazionale 91
Rome, 00184
Italy
+390647922643 (Phone)
+390647923723 (Fax)
Corrinne Ho
Bank for International Settlements ( email )
CH-4002 Basel, Basel-Stadt
Switzerland
00 41 61 280 9158 (Phone)
00 41 61 280 9100 (Fax)
Michael Robert King
University of Western Ontario - Richard Ivey School of Business ( email )
1151 Richmond Street North
London, Ontario N6A 3K7
Canada
519 661 3084 (Phone)
HOME PAGE: http://www.ivey.uwo.ca/faculty/Michael_King.htm
Aviram Levy
Bank of Italy ( email )
Via Nazionale 91
00184 Roma
Italy
Fabio Panetta
Bank of Italy ( email )
Via Nazionale 91
00184 Roma
Italy
+39 06 4792 4143 (Phone)
+39 06 4792 3723 (Fax)
Federico Maria Signoretti (Contact Author)
Bank of Italy ( email )
Via Nazionale 91
Rome, 00184
Italy
Marco Taboga
Bank of Italy ( email )
Via Nazionale 91
00184 Roma
Italy
Andrea Zaghini
Bank of Italy ( email )
Via Nazionale 91
Rome, 00184
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 2,902
Downloads: 370
Download Rank: 42,518
References:  12
Citations:  34

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.312 seconds