Risker Italian banks boosted funding from CCPs during crisis – paper
These banks may have been dropped by bilateral funding partners, researchers say
Central counterparties may increase systemic risk to the financial sector during periods of stress, a working paper published by the Bank of Italy says.
In Always look on the bright side? Central counterparties and interbank markets during the financial crisis, Massimiliano Affinito and Matteo Piazza use granular monthly data on Italian banks from between 2004 and 2013.
The authors find that during the global financial crisis, banks that were more at risk increased their reliance on CCPs for
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