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Bank Failures: The Limitations of Risk Modeling

In: The First Credit Market Turmoil Of The 21st Century Implications for Public Policy

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  • Patrick Honohan

    (Trinity College and Center for Economic Policy Research, Ireland)

Abstract

The following sections are included:Introduction and SummaryFour Failure CategoriesCase A: “Diversified survivor” — UBSCase B: “Ruined gambler” — Sachsen LandesbankCase C: “Too opaque to survive in the market” — Northern RockCase D: “Overleveraged mortgage lender” — The GSEsConclusionReferences

Suggested Citation

  • Patrick Honohan, 2009. "Bank Failures: The Limitations of Risk Modeling," World Scientific Book Chapters, in: Douglas D Evanoff & Philipp Hartmann & George G Kaufman (ed.), The First Credit Market Turmoil Of The 21st Century Implications for Public Policy, chapter 8, pages 103-123, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814280488_0008
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    1. Honohan,Patrick & Laeven,Luc (ed.), 2005. "Systemic Financial Crises," Cambridge Books, Cambridge University Press, number 9780521851855, October.
    2. Honohan, Patrick & Klingebiel, Daniela, 2003. "The fiscal cost implications of an accommodating approach to banking crises," Journal of Banking & Finance, Elsevier, vol. 27(8), pages 1539-1560, August.
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    26. Honohan, Patrick, 2008. "Risk Management and the Costs of the Banking Crisis," National Institute Economic Review, National Institute of Economic and Social Research, vol. 206, pages 15-24, October.
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    28. Patrick Honohan, 2008. "Risk Management and the Costs of the Banking Crisis," National Institute Economic Review, National Institute of Economic and Social Research, vol. 206(1), pages 15-24, October.
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    Cited by:

    1. Grant Kirkpatrick, 2009. "The corporate governance lessons from the financial crisis," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2009(1), pages 61-87.

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    More about this item

    Keywords

    Financial Crises; Systemic Risk; Credit Market Turmoil; International Financial Markets;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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