Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/197904 
Year of Publication: 
2018
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2018-51
Publisher: 
Bank of Canada, Ottawa
Abstract: 
This paper studies the relationship between bank holding company affiliation and the individual and systemic risk of banks. Using the 2005 hurricane season in the US as an exogenous shock to bank balance sheets, we show that banks that are part of a holding parent company are more resilient than independent banks. Examining the impact of the liquidity of the holding on resiliency shows that banks are more fragile when the liquidity of the holding is lower, consistent with internal capital markets playing a role in stabilizing banks. We also show that banks whose holdings display low liquidity levels rebalance their portfolios towards riskier activities, such as non-traditional banking activities.
Subjects: 
Financial stability
financial institutions
JEL: 
G1
G2
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.