Suchergebnisse

Abstract. The authors of the article have studied the problem of managing non-performing loans within loan portfolios. It has been substantiated that Ukraine as a developing country is in such socio-economic conditions of development that increase credit risks for banks. Numerous studies of the determinants for the formation of loans portfolios in countries with different levels of economic development demonstrate that developing countries are prone to negative consequences that lead to insolvency of debtors in case of a drop in the GDP, inflation, legal uncertainty, political crises, etc. The lack of long-term experience of banks in solving problems of increasing the share of non-performing loans in banks' portfolios demonstrates that minimization of such assets requires regulation at the level of the banking system, but not a separate bank. Based on statistical data, it has been demonstrated that the minimization of problem loans of banks gained significant positive dynamics only after the National Bank of Ukraine regulated the process of managing distressed assets by adopting a regulatory act. Detailing the process of legal regulation of managing distressed assets allowed banks to structure and organize the work of their divisions in accordance with the normatively defined life cycle of distressed asset in such a way that all measures taken by them affect the efficiency of their work. Using permits, prohibitions and obligations as legal means of regulating relations between banks and their debtors, those relations have become predictable, allowing banks to control the process of managing non-performing loans and make timely decisions on the use of tools to minimize the share of distressed assets of the bank. The wide choice and consistency of applying financial and legal instruments in the process of managing non-performing loans allows banks to maximize the contractual settlement of debt and address to the competent authorities for the application of state coercion to debtors. Direct prohibitions, which are provided in the procedure of writing-off impaired assets, prevent corruption manifestations in this process. However, the authors have argued that the practice of 2008—2019 in terms of managing non-performing loans of banks demonstrated that the effectiveness of this process directly depends on government regulation. If the economic preconditions for the formation of problem loans depend on various factors of objective and subjective nature, then the management of non-performing loans directly depends on the existing legal models in the state for solving this problem. The autonomy of banks and their right to independently determine their strategies for managing distressed assets does not provide the desired efficiency without the imperative intervention of the central bank. Thus, the state regulation of the life cycle of distressed assets has demonstrated its effectiveness, and thus confirmed the need for regulatory influence on the processes of minimizing non-performing loans in Ukrainian banks. Keywords: non-performing loans, distressed assets, agreement-based regulation, state influence, state coercion, legal regulation. GEL Classification G18, G21, G34, K12, K42 Formulas: 0; fig.: 2; tabl.: 0; bibl.: 12. ; Анотація. Досліджується проблема управління непрацюючими кредитами у кредитних портфелях банків. На основі аналізу детермінантів проблемних кредитів зроблено висновок, що Україна як держава з економікою, що розвивається, розв'язати цю проблему без нормативно-правового регулювання не може. На основі статистичних даних продемонстровано, що за допомогою дозволу, заборони і зобов'язання вітчизняна банківська система змогла істотно зменшити частку проблемних кредитів. Відстоюється думка проте, що нормативна деталізація процесу управління проблемними активами дозволила банкам відповідно до нормативно визначеного життєвого циклу проблемного активу структурувати і поліпшити організацію роботи своїх підрозділів. Обґрунтовується, що економічні передумови формування непрацюючих кредитів залежать від різних факторів об'єктивного і суб'єктивного характеру, а управління проблемними кредитами прямо залежить від наявних у державі правових моделей розв'язання цієї проблеми. Державне регулювання життєвого циклу проблемного активу показало свою ефективність і тим підтвердило необхідність нормативно-правового впливу на процеси мінімізації проблемних кредитів в банках України. Ключові слова: непрацюючі кредити, проблемні активи, договірне регулювання, державний вплив, державний примус, правове регулювання. Формул: 0; рис.: 2; табл.: 0; бібл.: 12.

Diese Dissertation untersucht, ob staatliche Interventionen und neue regulatorische Anforderungen signifikante Wachstumseffekte hervorrufen. Sie enthält drei separate Analysen und ist in fünf Kapitel unterteilt. Kapitel 2 beinhaltet die Analyse eines allgemeinen Gleichgewichtsmodells zu den potenziellen Konsequenzen der Einführung einer, wie in Basel III vorgeschlagenen, Leverage Ratio. In Kapitel 3 untersucht diese Dissertation unter Zuhilfenahme von Industriedaten von Eurostat und der Rajan-Zingales-Methode reale Wachstumseffekte von Bankensektorintegration in Europa. Dies umfasst zum einen die Phase der Finanzintegration vor der globalen Finanzkrise sowie die anschließende Phase der Fragmentierung und des Schuldenabbaus bei Banken. In Kapitel 4 untersucht diese Dissertation kurz- und mittelfristige Wachstumseffekte von Bankenrettungsmaßnahmen in der EU während der Finanz- und Staatsschuldenkrise. Die Studie basiert auf europäischen Industriedaten von 2008 bis 2013 und der Anwendung der Rajan-Zingales-Methode. Sie unterscheidet zwischen direkten Rekapitalisierungen, dem Kauf notleidender Aktiva, Garantien sowie sonstigen Liquiditätsmaßnahmen basierend auf detaillierten jährlichen Daten der Europäischen Kommission. Die Resultate der drei Analysen deuten darauf hin, dass Interventionen im Bankensektor und regulatorische Reformen signifikante realökonomische Effekte haben. Ein austarierter Ansatz ist notwendig um eine positive Wirkung auf das Wirtschaftswachstum zu erzielen. ; This thesis investigates whether public interventions and new regulatory requirements have significant growth effects. It contains three separate analyses and is organized into five chapters. In Chapter 2, the thesis provides a general equilibrium analysis of potential consequences from the introduction of a binding leverage ratio, as proposed in Basel III. In Chapter 3, using industry data from Eurostat and applying the Rajan-Zingales methodology, the thesis investigates the real growth effects of banking sector integration in the European Union over the phase of rapid financial integration before the global financial crisis as well as the following phase of financial fragmentation and bank deleveraging. In Chapter 4, the thesis investigates short-run and medium-run growth effects of banking sector state aid in the European Union during the financial and sovereign debt crisis. The study is based on European industry data for the sample period from 2008 to 2013 on which the Rajan-Zingales-methodology is applied. It distinguishes between direct recapitalizations, impaired asset relief programs, guarantees, and other liquidity support based on detailed annual data by the European Commission. The results of the three analyses indicate that interventions in the banking sector as well as corresponding regulatory reforms have significant real economic effects. A balanced approach is necessary to obtain positive influence on economic growth. ; vi, 135 Seiten

This article describes the Rehabilitation Teachers Division—one of the four units of an Israeli rehabilitation agency, Migdal Or. It discusses the division's history, structure, and unique features and shows that although many ideas and models were taken from programs in other countries, they have been adapted to the needs, assets, and cultures of blind and visually impaired people in Israel.

In this paper, I analyze the impact of the extension of the ECB s collateral framework on securities sales. In addition, I evaluate the impact of different macroeconomic and bank-specific characteristics on banks selling behavior. At this, I distinguish between healthy banks and banks rescued from the German government hypothesizing that distressed banks manage sales of their assets differently. My analysis is based on quantile regressions for panel data containing securities holdings of 27 German banks, which allows an assessment of extremely large sales. Such selling behavior could cause a collapse of prices and lead to fire sales adversely impacting other financial institutions. I find clear evidence that the ECB s collateral framework has a stabilizing impact on sales of assets, especially for impaired banks and during the crisis the relationship is significant.

This paper seeks to contribute to the analysis of the bank efficiency in the European Union in the aftermath of the recent crisis, using Data Envelopment Analysis (DEA) and considering a sample of 485 banks from all current EU member-states between 2011 and 2017. The results obtained confirm the existence of bank inefficiency, and that this inefficiency is mostly due to inefficient managerial performance and bad combinations of the considered bank inputs and outputs. The results also provide enough evidence of appropriate scale production and dynamic technological changes during the considered interval. Moreover, the results obtained using panel estimates to explain the bank total factor productivity changes allow us to conclude that the choices of the banks in terms of the fixed assets, the profit before tax to the average assets, as well as the ratio of the off-balance sheet items to total assets contribute positively to the productivity changes. On the other side, the ratio of the impaired loans to equity, and the bank interest margins are not in line with the total factor productivity changes of the EU banking sector. ; info:eu-repo/semantics/publishedVersion

Recent macro developments in the euro area have highlighted the interactions between fiscal policy, sovereign debt, and financial fragility. We take a structural macroeconomic model with frictions in the financial intermediation process, in line with recent research, but introduce asset choice and sovereign debt holdings in the portfolio of banks. Using this model, we emphasize a new crowding-out mechanism that works through reduced private access to credit when banks accumulate sovereign debt under a leverage constraint. Our results show that, when banksinvest a substantial fraction of their assets in sovereign debt, the effectiveness of fiscal stimulus policies may be impaired because deficit-financed fiscal expansionsmay tighten financial conditions to such an extent that private demand is crowded out. We also analyze the macroeconomic effectiveness of liquidity supportto commercial banks through recapitalizations or loans by the government and the impact of different ways of financing those policies.

Recent macro developments in the euro area have highlighted the interactions between fiscal policy, sovereign debt, and financial fragility. We take a structural macroeconomic model with frictions in the financial intermediation process, in line with recent research, but introduce asset choice and sovereign debt holdings in the portfolio of banks. Using this model, we emphasize a new crowding-out mechanism that works through reduced private access to credit when banks accumulate sovereign debt under a leverage constraint. Our results show that, when banks invest a substantial fraction of their assets in sovereign debt, the effectiveness of fiscal stimulus policies may be impaired because deficit-financed fiscal expansions may tighten financial conditions to such an extent that private demand is crowded out. We also analyze the macroeconomic effectiveness of liquidity support to commercial banks through recapitalizations or loans by the government and the impact of different ways of financing those policies.

Recent macro developments in the euro area have highlighted the interactions between fiscal policy, sovereign debt, and financial fragility. We take a structural macroeconomic model with frictions in the financial intermediation process, in line with recent research, but introduce asset choice and sovereign debt holdings in the portfolio of banks. Using this model, we emphasize a new crowding-out mechanism that works through reduced private access to credit when banks accumulate sovereign debt under a leverage constraint. Our results show that, when banks invest a substantial fraction of their assets in sovereign debt, the effectiveness of fiscal stimulus policies may be impaired because deficit-financed fiscal expansions may tighten financial conditions to such an extent that private demand is crowded out. We also analyze the macroeconomic effectiveness of liquidity support to commercial banks through recapitalizations or loans by the government and the impact of different ways of financing those policies. -- Financial intermediation ; fiscal policy ; sovereign debt

Many processes are currently used to produce tactual maps for visually impaired persons. Although each process has certain assets and liabilities, the variety gives tactual map researchers and makers tremendous flexiblity in selecting a process appropriate for their specific needs. Capsule paper is one recently developed process that lends itself to many tactual map applications. More than 60 different tactual maps were created on capsule paper to examine the effectiveness of this process. The medium's composition, steps necessary for map compilation and processing, equipment costs and operations, appropriate symbolization, and advantages and disadvantages of the process are discussed.

Since the changing of the political and economic system in 1989-1990 in Hungary, volunteer movements have appeared all over the country. Volunteers of different ages and socioeconomic backgrounds are engaged in a wide range of activities, wishing to add values to the lives of others in need, hoping to improve their micro or/and macro environment. Volunteering has also appeared in the field of sport, and the work of a large number of nongovernmental sport organisations is strongly dependent on volunteers' participation. In the socialist era disability sports were neglected by the state. The new democratic state has been paying increasing attention to disability sports and volunteers have been a great asset in improving the accessibility of spare time sport activities. The present empirical research investigates which factors motivate sighted volunteers to join Hungarian Sports and Leisure Association for the Visually Impaired (Látássérültek Szabadidős Sportegyesülete, LÁSS). Results confirm that joining LÁSS was in few cases (N=3) attributed to having parental or other family relations with blind or partially sighted people. Respondents unanimously admit to have a wish to share the joy of physical activity with their visually impaired peers.

Since the changing of the political and economic system in 1989-1990 in Hungary, volunteer movements have appeared all over the country. Volunteers of different ages and socioeconomic backgrounds are engaged in a wide range of activities, wishing to add values to the lives of others in need, hoping to improve their micro or/and macro environment. Volunteering has also appeared in the field of sport, and the work of a large number of non- governmental sport organisations is strongly dependent on volunteers' participation. In the socialist era disability sports were neglected by the state. The new democratic state has been paying increasing attention to disability sports and volunteers have been a great asset in improving the accessibility of spare time sport activities. The present empirical research investigates which factors motivate sighted volunteers to join Hungarian Sports and Leisure Association for the Visually Impaired (Látássérültek Szabadidős Sportegyesülete, LÁSS). Results confirm that joining LÁSS was in few cases (N=3) attributed to having parental or other family relations with blind or partially sighted people. Respondents unanimously admit to have a wish to share the joy of physical activity with their visually impaired peers.

146Sovereign immunity — Property of foreign States — Lease of premises for embassy use — Action for rent arrears and repair costs — Judgment in default — Whether foreign State entitled to immunity from execution — Requirement to consider immunity from execution as a separate question where no entitlement to jurisdictional immunity — Rules of customary international law — Manner in which established — Whether rule of customary international law exists completely debarring measures of execution against a foreign State — Judgment relating to acts iure gestionis of foreign State — Whether execution against assets of a foreign State serving sovereign purposes admissible — Whether execution against assets of foreign State sewing the official functions of a diplomatic mission admissible — Whether classification of assets to be made according to municipal or international law — Application of test of whether or not the ability of the mission to function would be impaired — Whether general current bank account of foreign State used to cover embassy expenditure is immune from execution — Whether sending State can be required to provide details of the purposes of funds in such an account — Protection of individuals against the immunity of an embassy account being used as shield for private financial transactions — Whether the financial position of sending State consequent upon any attachment is relevant — The law of the Federal Republic of Germany

The threat to the international financial system resulting from the developing‐country debt problem has diminished since the initial 1982 crisis, despite halting adjustment and impaired creditworthiness in heavily indebted developing countries. The threat to the financial system has eased as commercial banks have reduced sharply the share of their assets and capital exposed to the troubled debtor countries. The countries themselves, however, are no better off. A sizable balance‐of‐payments adjustment has occurred in the heavily indebted developing countries, but that adjustment was concentrated–at least in quantitative terms–during the years immediately following the onset of the crisis and might have been more efficient had it been executed more gradually. Despite the adjustment that has occurred, the creditworthiness of the heavily indebted countries–as evaluated by conventional indices–has not improved. And, for reasons that this article explores, economic growth per capita has not resumed either.

In the Ancien Régime the tutor was considered one of the most important figures of the trusteeship system, since he performed the duties of parents (administer, protect and sustain the orphans) although he was prohibited from certain acts, in particular, the sale of goods of minors. The legislation (judicial authorities) and the family of orphans controlled the tutor's liberty to administrate the assets. In addition, in case of mismanagement, responsibilities fell back entirely on the tutor, who should respond with his own possessions. In resume, the law sought to avoid the mismanagement of the orphan's wealth. Therefore, if one was not a tutor because the law prevented them, in particular the mother and in certain situations the older brothers of age were. Other individuals were not because they refused, presenting a varied number of arguments. However, from the second quarter of the nineteenth centurythe Portuguese legislation has undergone changes in these matters in order to overcome the bureaucracy behind the defense, especially the exerted by mothers and put an end to abuses. In this way, we have seen the creation of the Council of the Family who had underlying a set of functions, among which, controlling the tutor in the exercise of guardianship of orphans, absent heirs and impaired.

The essays collected in this dissertation explore macro-financial linkages arising from liquidity frictions. To this end, two distinct model frameworks are developed, which separately consider funding liquidity, i.e the ease with which financial intermediaries can obtain short-term financing, and asset market liquidity, i.e. impediments to asset transactions. Both approaches highlight how liquidity conditions interact with macroeconomic dynamics. In particular, impairments in funding or asset market liquidity tighten financial constraints and trigger a flight to liquid assets, which serve as a hedge against future financing constraints. However, such liquidity hoarding is costly for the economy at large, since it crowds out funding for productive investment, thus amplifying and propagating initial shocks. By offering frameworks to study the nexus between liquidity frictions and macroeconomic dynamics, this dissertation attempts to further our understanding of the mechanisms that lie at the heart of financial crises. Chapter 2 presents a model-based interpretation of the 2007-09 global financial crisis and the ensuing Great Recession, emphasizing a collateral crisis in the U.S. financial sector as its origin. To this end, banks operating subject to agency problems and funding liquidity risk in their intermediation activity are introduced into an otherwise standard DSGE model. Balance sheet constraints force banks to trade off insurance against funding outflows with the scale of their loan portfolio. The amount of liquidity reserves held in the financial sector is, thus, determined endogenously. A financial crisis, simulated as an abrupt decline in the collateral value of bank assets, triggers a counter-cyclical flight to liquidity reserves, which strongly amplifies the initial shock and induces credit crunch dynamics. The model thus develops a new balance sheet channel of shock transmission which works through the composition of banks' asset portfolios. While banks' exposure to funding liquidity frictions is at the centre of the mechanisms described in chapter 2, chapter 3 focuses on endogenous asset market liquidity by introducing search frictions into asset markets within a DSGE model. In this model, asset liquidity is tantamount to the ease of issuance and resaleability of private financial claims, which is driven by investors' participation in the asset market. This framework is able to generate positive co-movement between asset saleability and asset prices. At the same time, limited liquidity of private claims creates a role for liquid assets, such as government bonds or fiat money, to ease funding constraints. When the capacity of the asset market to channel funds to investors deteriorates due to more severe frictions, the hedging value of liquid assets increases as investment falls. Thus, a version of the model calibrated for the U.S. economy is able to match the liquidity hoarding observed during recessions, together with the dynamics of key macroeconomic variables. Chapter 4 extends the modelling framework developed in the previous chapter to sovereign bond markets in order to study the transmission channels of stress from government debt markets to the real economy. Banks in the euro area typically hold a large amount of government debt in their bond portfolios, which are valued both for their low credit risk and high liquidity. During the sovereign debt crisis, these characteristics of government debt were severely impaired in stressed euro area countries. Chapter 4 presents a standard DSGE model augmented with a banking sector and a market for government debt characterized by search frictions with a view to disentangling the interaction of sovereign credit and liquidity risk. A sovereign solvency shock is modelled as a haircut on government bonds. As banks react to this shock by rebalancing towards highly liquid short-term assets, demand for government bonds collapses, which endogenously worsens their market liquidity. Thus, a sovereign liquidity risk channel from government bond markets to the real sector emerges. Endogenous government bond liquidity negatively affects the funding conditions of the fiscal sector, tightens financing constraints in the banking sector and lowers investment and output. The model is able to match a number of stylised facts regarding the behaviour of sovereign debt markets during the euro area sovereign debt crisis, such as depressed turnover rates and rising bid-ask spreads. ; Die in dieser Dissertation gesammelten Aufsätze untersuchen die Interaktion zwischen Finanzmärkten und realwirtschaftlicher Entwicklung. Sie stellen dabei insbesondere auf die Rolle von Liquiditätsfriktionen ab. In den folgenden Kapiteln werden zwei unterschiedliche Modellrahmen entwickelt, in denen einerseits Refinanzierungsrisiken im Bankensektor und andererseits Marktliquiditätsrisiken, also Friktionen bei der Veräußerung von Finanzaktiva, untersucht werden. Zunehmende Refinanzierungsrisiken oder Beeinträchtigungen der Marktliquidität beschränken die Finanzierungsmöglichkeiten von Banken und Investoren und gehen in der Regel mit Portfolioumschichtung hin zu marktliquiden Wertpapieren als Absicherung gegen erhöhte Liquiditätsrisiken einher. Die Hortung von Liquiditätsreserven kann allerdings zur Verdrängung von produktiven Investitionen führen, dadurch konjukturelle Schwankungen verstärken und die Finanzierungsmöglichkeiten weiter einschränken. Auf diese Weise entsteht ein Verstärkungsmechanismus, der die Ausweitung von finanzmarktspezifischen Schocks zu gesamtwirtschaftlichen Krisen erklären kann. Indem die in dieser Dissertation vorgestellten Ansätze dieses Wechselspiel von Liquiditätsfriktionen und makroökonomischen Dynamiken untersuchen, versuchen sie, einen Beitrag zum Verständnis der Entstehung und Ausbreitung von Finanzkrisen zu leisten. Kapitel 2 präsentiert eine modellbasierte Interpretation der globalen Finanzkrise von 2007-09 und der daraus erwachsenen Großen Rezession, welche die Rolle von Finanzintermediären, deren Kollateral sowie Refinanzierungsrisiken betont. In diesem Kapitel wird ein dynamisches, stochastisches, allgemeines Gleichgewichtsmodell (DSGE Modell) um einen Bankensektor erweitert, der durch Prinzipal-Agenten-Probleme sowie Refinanzierungsrisiken gekennzeichnet ist. Eingeschränkter Zugang zu externen Finanzierungsquellen, verbunden mit Refinanzierungsrisiken, zwingt Banken in diesem Modell dazu, Reservebildung gegen Einlagenabflüsse mit dem Volumen ihrer Kreditvergabe abzuwägen. Durch dieses Kalkül wird die Liquiditätsreservehaltung im Bankensektor endogenisiert. Eine Finanzkrise, simuliert als ein plötzlicher, exogener Verfall des Kollateralwertes von Bankkrediten, erhöht in diesem Modell das Risiko von Einlagenabflüssen und löst dadurch eine Flucht hin zu Liquiditätsreserven aus. Diese Liquiditätshortung verstärkt den ursprünglichen Schock und führt eine Kreditklemme herbei. Damit beschreibt das Modell einen neuen Kanal der Transmission von Finanzmarktschocks, der über die Substitution von Finanzmarktaktiva im Bankensektor operiert. Während Refinanzierungsrisiken im Bankensektor der Ausgangspunkt für die in Kapitel 2 beschriebenen Dynamiken sind, stellt Kapitel 3 auf die Endogenisierung der Marktliquidität von Finanzaktiva durch die Einführung von Such-Friktionen auf Wertpapiermärkten im Rahmen eines DSGE Modells ab. In diesem Modell werden Marktliquiditätsrisiken durch Friktionen bei der Begebung und Wiederveräußerung von Finanzaktiva erfasst, die von der Nachfrage- und Angebotssituation auf Wertpapiermärkten abhängen. Die Berücksichtigung von Such-Friktionen auf Wertpapiermärkten erlaubt es, eine positive Korrelation zwischen physischen Beschränkungen beim Wertpapierhandel sowie den Wertpapierpreisen herzustellen. Gleichzeitig begründet die eingeschränkte und fluktuierende Marktliquidität von Wertpapieren eine - volatile - Nachfrage nach hochliquiden Finanzaktiva, wie etwa Staatsanleihen oder Bargeld. Wenn die Marktliquidität von Wertpapieren in diesem Modellrahmen erodiert, verlieren Wertpapiermärkte zusehends an Bedeutung für Finanzierungsgeschäfte, während die Nachfrage nach hochliquiden Papieren zu Lasten von Investitionen ausgeweitet wird. Eine für die U.S.-Wirtschaft kalibrierte Version des Modells kann daher die anti-zyklische Liquiditätshortung im Finanzsektor sowie deren Korrelation mit dem Konjunkturzyklus abbilden. In Kapitel 4 wird die im vorherigen Kapitel entwickelte Modellierungsstrategie für endogene Marktliquidität auf Staatsanleihemärkte angewendet, um verschiedene Aspekte des Übertragungsmechanismus von Staatsschuldenkrisen auf die realwirtschaftliche Entwicklung zu untersuchen. Aufgrund ihrer üblicherweise niedrigen Ausfallwahrscheinlichkeit und stabilen, hohen Marktliquidität werden Staatsanleihen von Banken in der Eurozone bevorzugt gehalten. Während der europäischen Staatsschuldenkrise verloren diese Anleihen in den betroffenen Krisenländern jedoch ihre Eigenschaften als sichere, hochliquide Papiere. Um das Zusammenspiel von Kredit- und Liquiditätsrisiken auf den Staatsanleihemärkten dieser Länder zu entflechten und deren makroökonomische Auswirkungen zu verstehen, wird das in Kapitel 4 vorgestellte DSGE Modell um einen Bankensektor sowie einen durch Such-Friktionen gekennzeichneten Markt für Staatsanleihen erweitert. Ein als "Haircut" modellierter Schuldenschnitt veranlasst Banken analog zum vorherigen Kapitel zu einer Umschichtung ihrer Anleiheportfolios zugunsten hochliquider, kurzfristiger Papiere (z. B. Zentralbankdepositen oder Bargeld), sodass die Nachfrage nach Staatsanleihen einbricht und ihre Marktliquidität weiter untergraben wird. Auf diese Weise entsteht ein Risikotransfer vom Staatsanleihemarkt über die Bankbilanzen zu den Finanzierungsbedingungen des Privatsektors. Letztere verschlechtern sich angesichts gestiegener Kredit- und Liquiditätsrisiken im Bankensektor, sodass Investitionen gekürzt werden. Gleichzeitig steigen die staatlichen Finanzierungskosten, da Investoren aufgrund erodierender Marktliquidität von Staatsanleihen höhere Liquiditätsprämien verlangen. Dank dieser Mechanismen ist das Modell in der Lage, eine Reihe stilisierter Fakten bezüglich der Dynamik europäischer Staatsanleihemärkte während der Schuldenkrise zu replizieren, wie beispielsweise niedrigere Transaktionsvolumina und steigende Geld-Brief Spannen.