Propagation And Combat Of Banking Liquidity Crisis: The Case Of The Small Crisis Of 2004
(Ahmar, Carlos)
Propagation and combat of banking liquidity crisis: the case of the small crisis of 2004The intervention on a small bank (banco Santos), in November 2004, hasprovoked a liquidity crisis on a specific segment of the Brazilianbanking market. The objective of this case study has been to assess andcharacterize the phenomenon, based on balance sheet data and publicinformation about 84 financial institutions of the market. Throughgraphical analysis associated with statistical correlation analysis,the behavior of the deposit account, before and after the intervention,was determined. As a result banks have been classified on fivedifferent groups. The group with the biggest banks was designed as thecontrol group and banks that have showed loss of deposits and couldhave been, potentially, affected by a liquidity crisis were denominatedas study group. The definition of the, presumable, contaminated groupof banks has permitted to assess the evolution of deposits? withdrawsas well as the role of the credit and security portfolios as providersof liquidity. The analysis has shown the importance of the reserverequirements over time deposits as a liquidity reservoir. It has alsobeen determined the volume of credit transferred along the period ofanalysis. The conclusion is that the credit loss provision hasaugmented, getting closer to the values of the control group that usesmore conservative provision standards. This study has also evaluatedthe observed events and the characteristics of the Brazilian financialsystem, with theoretical and experimental background, mainly focusingtwo aspects: fundaments that justify the exercise of bankingsupervision and the theory of information cascades on basis of the bankruns.
Resumos Relacionados
- Credit Crisis Spreads As British Bank Collapses
- How Budget May Change Your Saving Plan
- How Budget May Change Your Saving Plan
- Forex Market
- Subprime Crisis: Us Economy Needs A Correction
|
|
