Has Bail-in Increased Market Discipline? An Empirical Investigation of European Banks’ Credit Spreads

This article scrutinizes the impact of foreign bond ownership on market discipline, that is the mutual responsiveness of financial markets and sovereign borrowers. The empirical investigation covers 12 advanced economies during the Great Moderation (1981–2008). This article finds no evidence that foreign bond investors affect the sensitivity of bond spreads to fiscal policy. Reversely, results show that government responsiveness to market pressure is contingent on the make-up of its investor base. Bond spreads spur on fiscal consolidation. The larger the share of foreign bond investors, the bigger this effect.

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THE SLOPE OF THE TERM STRUCTURE OF CREDIT SPREADS: AN EMPIRICAL INVESTIGATION

The Journal of Financial Research ◽

10.1111/j.1475-6803.2007.00212.x ◽

2007 ◽

Vol 30 (2) ◽

pp. 237-257 ◽

Cited By ~ 20

Author(s):

Mascia Bedendo ◽

Lara Cathcart ◽

Lina El-Jahel

Keyword(s):

Term Structure ◽

Empirical Investigation ◽

Credit Spreads

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Applications of Governance in Banks According to Basel (3) Committee Decisions

Iraqi Administrative Sciences Journal ◽

10.33013/iqasj.v1n2y2017.pp96-119 ◽

2017 ◽

Vol 1 (2) ◽

pp. 96-119

Author(s):

Haidar Hamza Judy ◽

Fazila Boutoura .

Keyword(s):

Central Bank ◽

Financial Statements ◽

Market Discipline ◽

Accounting Disclosure ◽

Integrated Framework ◽

European Banks ◽

New Gateway ◽

Basel 3

Increased attention banking governance after the repercussions of the financial and banking crashes of some of the poles of the American and European Banks, and the consequent of a global confidence's crisis in the financial statements of Banks and Companies because of the weakness accounting disclosure and transparency, and many countries rushed to adopt a banking governance. In Algeria, continued in recent years, the works aimed at establishing an integrated framework for banking governance at the level of financial and banking institutions.Basel III is a new gateway to strengtheningbankinggovernance and enabling the central bank to apply the necessaryfoundations for governance in banks, particularlythrough the Pillars of market discipline.

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