Credit Crises, Risk Management Systems and Liquidity Modelling

No 1, Working Papers from John Deutsch Institute for the Study of Economic Policy

Abstract: This paper explores the theoretical structure and implementation of Risk Management systems in Financial Institutions. It uses the current credit crisis as a test of the model's deficiencies. The paper suggests possible modifications to these systems to allow for "liquidity" in asset trading. Also the paper links these modifications to the theory of banking and financial crises and suggests possible ways in which regulators and central banks may exploit or modify RM systems to test for systemic risks.

Keywords: Credit Risk; Risk Management; Liquidity (search for similar items in EconPapers)
JEL-codes: G18 G21 L13 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2008-09
New Economics Papers: this item is included in nep-ban and nep-rmg
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://jdi-legacy.econ.queensu.ca/Working_Papers/papers/jdi_wp_1.pdf First version 2008 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jdi:wpaper:1

Access Statistics for this paper

More papers in Working Papers from John Deutsch Institute for the Study of Economic Policy Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().