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Developments during the global financial crisis have highlighted the importance of differentiating across financial systems and institutions. Assessments of financial stability have increasingly considered the characteristics of individual banks within a financial system, as well as those with significant international reach, to identify vulnerabilities and inform policy decisions. This paper proposes a simple measure of bank soundness, the Bank Health Index (BHI), to facilitate preliminary analyses of individual financial institutions relative to their peers. The evidence suggests that the BHI is useful for a first-pass identification of bank soundness conditions. Automated spreadsheet templates of the bank Health Assessment Tool (HEAT!) are provided for users with access to the BankScope, Bloomberg and/or SNL database(s).

Bank examination. --- Banks and banking. --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- Finance --- Financial institutions --- Money --- Bank auditing --- Banks and banking --- Auditing --- Examinations --- Banks and Banking --- Finance: General --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- General Financial Markets: Government Policy and Regulation --- Financial Institutions and Services: General --- Bank soundness --- Global systemically important banks --- Nonperforming loans --- Financial sector policy and analysis --- Loans --- Financial services industry --- Spain

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This paper examines the transitional macroeconomic costs of a synchronized global increase in bank capital adequacy requirements under Basel III, as well as a capital increase covering globally systemically important banks. The analysis, using an estimated multi-country model, contributed to the work of the Macroeconomic Assessment Group analysis, especially in estimating the potential international spillovers associated with a global increase in capital requirements. The magnitude of the effects found in this analysis is relatively modest, especially if monetary policies have scope to ease in response to a widening of interest rate spreads by banks.

Bank capital --- Asset requirements --- Capital asset requirements --- Financial responsibility requirements --- Minimum asset requirements --- Requirements, Asset --- Assets (Accounting) --- Capital --- Econometric models. --- Banks and Banking --- Macroeconomics --- Industries: Financial Services --- Financial Markets and the Macroeconomy --- Open Economy Macroeconomics --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Financial Institutions and Services: General --- Externalities --- Interest Rates: Determination, Term Structure, and Effects --- Finance --- Banking --- Financial services law & regulation --- Global systemically important banks --- Spillovers --- Central bank policy rate --- Capital adequacy requirements --- Financial institutions --- Financial sector policy and analysis --- Financial services --- Financial regulation and supervision --- Zero lower bound --- Financial services industry --- International finance --- Interest rates --- Banks and banking --- United States

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Interconnectedness among global systemically important banks (GSIBs) and global systemically important insurers (GSIIs) has important financial stability implications. This paper examines connectedness among United States, European and Asian GSIBs and GSIIs, using publicly-available daily equity returns and intra-day volatility data from October 2007 to August 2016. Results reveal strong regional clusters of return and volatility connectedness amongst GSIBs and GSIIs. Compared to Asia, selected GSIBs and GSIIs headquartered in the United States and Europe appear to be main sources of market-based connectedness. Total system connectedness—i.e., among all GSIBs and GSIIs—tends to rise during financial stress, which is corroborated by a balance sheet oriented systemic risk measure. Lastly, the paper demonstrates significant influence of economic policy uncertainty and U.S. long-term interest rates on total connectedness among systemically important institutions, and the important role of bank profitability and asset quality in driving bank-specific return connectedness.

Risk. --- Economics --- Uncertainty --- Probabilities --- Profit --- Risk-return relationships --- Banks and Banking --- Financial Risk Management --- Industries: Financial Services --- Investments: Stocks --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Insurance --- Insurance Companies --- Actuarial Studies --- Time-Series Models --- Dynamic Quantile Regressions --- Dynamic Treatment Effect Models --- Diffusion Processes --- State Space Models --- Financial Institutions and Services: General --- Financial Crises --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Economic & financial crises & disasters --- Banking --- Investment & securities --- Global systemically important banks --- Global systemically important insurers --- Financial crises --- Insurance companies --- Financial institutions --- Stocks --- Financial services industry --- Banks and banking --- United States

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The Global Financial Crisis unleashed changes in the operating and regulatory environments for large international banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically Important Banks (G-SIBs). Drawing from banks’ reporting, it identifies strategies along four dimensions –consolidated lines of business and geographic orientation, and the funding models and legal entity structures of international operations. G-SIBs have adjusted their business models, especially by reducing market intensity. While G-SIBs have maintained international orientation, pressures on funding models and entity structures could affect the efficiency of capital flows through the bank channel.

Accounting --- Banks and Banking --- Industries: Financial Services --- International Financial Markets --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Business Objectives of the Firm --- International Finance: Other --- Financial Institutions and Services: General --- Public Administration --- Public Sector Accounting and Audits --- Investment Banking --- Venture Capital --- Brokerage --- Ratings and Ratings Agencies --- Financial Institutions and Services: Government Policy and Regulation --- Banking --- Finance --- Financial reporting, financial statements --- Global systemically important banks --- Foreign banks --- Financial statements --- Investment banking --- Financial institutions --- Public financial management (PFM) --- Financial services --- Banks and banking --- Financial services industry --- Banks and banking, Foreign --- Finance, Public --- United States

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The October 2017 Global Financial Stability Report finds that the global financial system continues to strengthen in response to extraordinary policy support, regulatory enhancements, and the cyclical upturn in growth. It also includes a chapter that examines the short- and medium-term implications for economic growth and financial stability of the past decades’ rise in household debt. It documents large differences in household debt-to-GDP ratios across countries but a common increasing trajectory that was moderated but not reversed by the global financial crisis. Another chapter develops a new macroeconomic measure of financial stability by linking financial conditions to the probability distribution of future GDP growth and applies it to a set of 20 major advanced and emerging market economies. The chapter shows that changes in financial conditions shift the whole distribution of future GDP growth.

Banks and Banking --- Finance: General --- Macroeconomics --- Money and Monetary Policy --- Industries: Financial Services --- Real Estate --- General Financial Markets: General (includes Measurement and Data) --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Aggregate Factor Income Distribution --- Financial Crises --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- General Financial Markets: Government Policy and Regulation --- Financial Institutions and Services: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Finance --- Banking --- Economic & financial crises & disasters --- Monetary economics --- Property & real estate --- Emerging and frontier financial markets --- Income --- Global financial crisis of 2008-2009 --- Credit --- Financial markets --- Money --- National accounts --- Financial crises --- Financial sector risk --- Financial sector policy and analysis --- Global systemically important banks --- Financial institutions --- Consumption --- Financial services industry --- Banks and banking --- Global Financial Crisis, 2008-2009 --- Financial risk management --- Economics --- Housing --- Prices --- United States