The effect of financial innovation on European banks’ risk

González, LO; Rodríguez Gil, LI; Martorell Cunill, O; Merigó Lindahl, JM

The effect of financial innovation on European banks’ risk

González, LO Rodríguez Gil, LI Martorell Cunill, O Merigó Lindahl, JM

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Publisher:: ELSEVIER SCIENCE INC
Publication Type:: Journal Article
Citation:: Journal of Business Research, 2016, 69, (11), pp. 4781-4786
Issue Date:: 2016-11-01

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Field	Value	Language
dc.contributor.author	González, LO
dc.contributor.author	Rodríguez Gil, LI
dc.contributor.author	Martorell Cunill, O
dc.contributor.author	Merigó Lindahl, JM
dc.date.accessioned	2021-02-23T12:16:22Z
dc.date.available	2021-02-23T12:16:22Z
dc.date.issued	2016-11-01
dc.identifier.citation	Journal of Business Research, 2016, 69, (11), pp. 4781-4786
dc.identifier.issn	0148-2963
dc.identifier.issn	1873-7978
dc.identifier.uri	http://hdl.handle.net/10453/146352
dc.description.abstract	© 2016 Elsevier Inc. This study examines the effect of the use of securitization and credit derivatives on the risk profile of European banks. Using information from 134 listed European banks during the period of 2006–2010, the results show that securitization and trading with credit derivatives have a negative effect on financial stability. The main findings also show the dominance of trading positions over hedging positions for credit derivatives. The results of this study support the higher capital requirements of the new Basel III international banking regulations. Furthermore, accounting measures do not readily indicate market risks, and thus the results support central banks’ use of market-solvency measures to monitor financial stability.
dc.language	English
dc.publisher	ELSEVIER SCIENCE INC
dc.relation.ispartof	Journal of Business Research
dc.relation.isbasedon	10.1016/j.jbusres.2016.04.030
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1505 Marketing
dc.subject.classification	Marketing
dc.title	The effect of financial innovation on European banks’ risk
dc.type	Journal Article
utslib.citation.volume	69
utslib.for	1505 Marketing
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology/School of Information, Systems and Modelling
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
dc.date.updated	2021-02-23T12:16:21Z
pubs.issue	11
pubs.publication-status	Published
pubs.volume	69
utslib.citation.issue	11

Abstract:

© 2016 Elsevier Inc. This study examines the effect of the use of securitization and credit derivatives on the risk profile of European banks. Using information from 134 listed European banks during the period of 2006–2010, the results show that securitization and trading with credit derivatives have a negative effect on financial stability. The main findings also show the dominance of trading positions over hedging positions for credit derivatives. The results of this study support the higher capital requirements of the new Basel III international banking regulations. Furthermore, accounting measures do not readily indicate market risks, and thus the results support central banks’ use of market-solvency measures to monitor financial stability.

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http://hdl.handle.net/10453/146352