Syed Basher, Ismail Dalla, Heiko Hesse, 22 May 2010The countries of the Gulf Cooperation Council were hit hard by declining oil prices during the global crisis. This column argues that East Asia has shown how viable local bond markets are essential to …
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Oil prices and bank profitability
Heiko Hesse, Tigran Poghosyan, 27 October 2009Bank balance sheets in oil-exporting economies have been hard hit recently. This column provides the first empirical evidence linking oil prices to bank performance in such economies. It suggests that easil…
Growing local-currency bond markets
Ismail Dalla, Heiko Hesse, 13 October 2009As the financial crisis has curtailed the ability of borrowers in emerging markets to find funds abroad, they have turned to raising capital in domestic markets. Local-currency bond markets had already grown tr…
Bank ownership and stability: Evidence from Germany
Thorsten Beck, Heiko Hesse, Thomas Kick, Natalja von Westernhagen , 9 May 2009Issues of banking stability are currently intensively debated in Germany and elsewhere. This column looks at German banks and suggests that privately-owned banks are more pro…
Methods to identify systemic financial risks
Christian Capuano, Brenda González-Hermosillo, Dale Gray, Heiko Hesse, Andreas Jobst , Paul Mills, Miguel Segoviano, Tao Sun, 23 April 2009As the recent G20 Communiqué emphasised, further progress is needed to identify and address systemic risks. Thi…
Financial turbulence and early crisis detection
Brenda González-Hermosillo, Heiko Hesse, 21 April 2009This column examines the use of key global market conditions to assess financial volatility and the likelihood of crisis. Using Markov regime-switching analysis, it shows that the Lehman Brothers f…
Sovereign wealth funds and financial stability
Heiko Hesse, Tao Sun, 30 March 2009The present financial crisis has placed financial stability at the forefront of policy discussions. At the same time, sovereign wealth funds have become much more significant players over the past two years. This colu…
Quo vadis Islamic finance?
Heiko Hesse, Andreas Jobst , Juan Solé, 24 November 2008This column discusses current trends in Islamic finance, which accounts for more than $800 billion worth of assets worldwide. The industry faces a number of challenges, including economic and leg…
Stock market wealth effects in emerging market countries
Heiko Hesse, 16 October 2008This column examines the impact of stock market valuation changes on consumption and investment in emerging markets. Though the effects are smaller than those in advanced economies, emerging market policymakers ought to pay …
Transmission of liquidity shocks: Evidence from the 2007 subprime crisis
Nathaniel Frank, Brenda González-Hermosillo, Heiko Hesse, 13 September 2008The recent credit crisis started as a credit shock and then rapidly promulgated in the form of market and funding illiquidity before inducing solvency problems at some financia…