Search Results (5)

This paper studies the impact of crisis management mechanisms (bailouts and bail-ins) on moral hazard. Through an econometric study of financial crises in emerging countries since 1993, the results indicate that recurrent bailouts exacerbate moral hazard, while bail-ins have only a minor impact due to their perceived lack of credibility. The results highlight the impact of crisis management measures on financial stability and the scale of the mobilised resources. Analysed in the context of efforts to support sustainable development, the study recommends reassessing the fundamentals of the bailout approach, developing a robust and sustainable bailout framework that aligns immediate interventions with sustainability objectives towards sustainable recovery strategies. Full article

A comprehension of the effects planting density and nitrogen (N) fertilization have on the physiological and morphological characteristics of trees is critical for optimizing the require size and characteristics of wood products. We evaluated the growth traits and the leaf and wood characteristics of three clone poplars including Populus simonii × P. nigra ‘Xiaohei’, ‘Xiaohei-14’ and ‘Bailin-3’ under five planting densities (1666, 1111, 833, 666, and 555 tree ha⁻¹) and four N fertilization rates (0, 100, 160, and 220 g tree⁻¹ year⁻¹). The results show that the clone type significantly affected all observed indicators, while planting density and N fertilization treatments had a significant effect on growth traits and leaf characteristics, but not on wood characteristics. Specifically, the clone ‘Bailin-3’ exhibited the largest annual increments in tree height and diameter at breast height (DBH), leaf width, N content, and soluble protein content. A decrease in initial planting density (from 1666 to 555 tree ha⁻¹) led to an increased annual incremental tree height and DBH, regardless of clone type and N fertilization treatment. N fertilization treatment significantly impacted the annual increment in DBH, but not that of tree height. Further, the annual increments in tree height and DBH were positively correlated with leaf width, N content, chlorophyll content, and soluble protein content, and negatively correlated with hemicellulose content. In addition, the chlorophyll and soluble protein contents were identified as the most reliable predictors of the annual increments in tree height and DBH. Our results demonstrate the clone ‘Bailin-3’ with 555 tree ha⁻¹ under 160 g N tree⁻¹ yr⁻¹ showed superior growth traits and leaf characteristics. Thus, it is recommended for future poplar silviculture of larger diameter timber production at similar sites. The results contribute to understanding of the effects of planting density and fertilization on the growth traits and the leaf and wood characteristics of three poplar clones, offering valuable guidance for the sustainable development and long-term productivity of poplar plantations. Full article

We propose a statistical measure, based on correlation networks, to evaluate the systemic risk that could arise from the resolution of a failing or likely-to-fail financial institution, under three alternative scenarios: liquidation, private recapitalization, or bail-in. The measure enhances the observed CDS spreads with a risk premium that derives from contagion effects across financial institutions. The empirical findings reveal that the recapitalization of a distressed bank performed by the other banks in the system and the bail-in resolution minimize the potential losses for the banking sector with respect to the liquidation scenario, thus posing limited systemic risks. A closer comparison between the private intervention recapitalization and the bail-in tool shows that the latter slightly reduces contagion effects with respect to the private intervention scenario. Full article

Until the Great Recession, rescuing banks with taxpayers’ money had been the preferred way to deal with banking crises. The dramatic effects of these practices on the real economy highlighted that bailouts are not a sustainable method to resolve troubled banks going forward. As a result, a new regulatory framework has been proposed, forcing the financial industry to move from “bailout” to “bail-in.” Understanding the implications of such a change is key to ensuring the success of these new banking rules. This article aims to build up a comprehensive and unbiased set of research articles in order to draw conclusions about the current status of the academic literature in the field of capital and loss absorption requirements. A research agenda on the topic is also proposed. The methodological approach undertaken is based on ProKnow-C (Knowledge Development Process-Constructivist). We also contribute to the development of Proknow-C methodology by adding a cross-reference extension to the original framework. The results of our analysis point out that further research has to be undertaken on the subject of loss absorption requirements. Full article