The SRISK metric (expected capital shortfall during a system…
The SRISK metric (expected capital shortfall during a systemic crisis) is useful for monitoring systemic risk at publicly traded banks but cannot capture risks at private institutions, which represents a significant blind spot.
Read DetailsA bank names its lending technologies by their primary sourc…
A bank names its lending technologies by their primary source of information. Match the correct primary information source to each technology:(i) Fixed-asset lending uses ___; (ii) Relationship lending uses ___; (iii) Small business credit scoring uses ___
Read DetailsIn Exhibit 2, Panel F shows that 92% of Pinnacle’s deposits…
In Exhibit 2, Panel F shows that 92% of Pinnacle’s deposits were uninsured at the start of the period. Using the Diamond-Dybvig framework, why does this concentration of uninsured deposits make the observed deposit run more predictable?
Read DetailsConsider the Pinnacle Growth Bank scenario from Exhibits 2 a…
Consider the Pinnacle Growth Bank scenario from Exhibits 2 and 3. Pinnacle’s deposits fell from 55% to 36% of TA while 92% of its deposits were uninsured. Apply the Diamond-Dybvig framework: which model elements are present in this scenario? (select all that apply)
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