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Bank Insolvency – Regulatory Challenges And Empirical Evidence

Author

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  • Kristi Marinova

    (D. A. Tsenov Academy of Economics)

Abstract

Nowadays bank insolvency is a specific field in bank capital management, which requires constant development of the existing regulations and application of new methods and tools for its prevention and early detection. The paper presents a study on bank insolvency in terms of regulatory challenges and empirical evidence for initiation of bankruptcy proceedings against credit institutions. The research thesis is that bank insolvency is a crisis phenomenon in banking practice whose theoretical modelling, regulatory management and empirical investigation require constant improvement of the regulatory framework and supervisory bodies of the central banking institution. The aim of the study was to perform a critical analysis of the evolution of the regulatory framework related to bank insolvency management using empirical evidence from the banking practice in Bulgaria.

Suggested Citation

  • Kristi Marinova, 2018. "Bank Insolvency – Regulatory Challenges And Empirical Evidence," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2 Year 20, pages 58-67.
    • Handle: RePEc:dat:earchi:y:2018:i:2:p:58-67
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    File URL: http://hdl.handle.net/10610/3920
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    References listed on IDEAS

    as
    1. Frank Strobel, 2011. "Bank insolvency risk and different approaches to aggregate Z-score measures: a note," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1541-1543.
    2. Frank Strobel, 2011. "Bank insolvency risk and Z-score measures with unimodal returns," Applied Economics Letters, Taylor & Francis Journals, vol. 18(17), pages 1683-1685.
    3. Sophocles Vogiazas & Constantinos Alexiou, 2013. "Liquidity And The Business Cycle: Empirical Evidence From The Greek Banking Sector," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(199), pages 109-126, October -.
    4. Hannan, Timothy H & Hanweck, Gerald A, 1988. "Bank Insolvency Risk and the Market for Large Certificates of Deposit," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(2), pages 203-211, May.
    5. Mark Anthony Johnson & Abdullah Mamun, 2012. "The failure of Lehman Brothers and its impact on other financial institutions," Applied Financial Economics, Taylor & Francis Journals, vol. 22(5), pages 375-385, March.
    6. Christa Hainz, 2005. "Effects of bank insolvency on corporate incentives in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(2), pages 261-286, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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