English
Ciência-IUL
Publicações
Descrição Detalhada da Publicação
The stock market reaction to the public announcement of a supranational list of too-big-to-fail banks during the financial crisis
Título Revista
Journal of International Financial Markets, Institutions & Money
Ano (publicação definitiva)
2013
Língua
Inglês
País
Alemanha
Mais Informação
Web of Science®
Scopus
Google Scholar
Abstract/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.
Agradecimentos/Acknowledgements
--
Palavras-chave
Too-big-to-fail; Banks; Regulation
Classificação Fields of Science and Technology
- Economia e Gestão - Ciências Sociais
