Since 2014
Contingent Convertible Bonds as an Alternative to Strengthen Banks' Ability in Financing a Real Economy
Entrepreneurial Business and Economics Review
View Archive Info| Field | Value | |
| Title |
Contingent Convertible Bonds as an Alternative to Strengthen Banks' Ability in Financing a Real Economy
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| Creator |
Zombirt, Jolanta; Jagiellonian University
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| Subject |
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— G13, G21, G33, G24, H12 |
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| Description |
The main goal of this paper is to analyse whether Contingent Convertible Bonds (CoCos) are equally safe for banks and for the real economy because of their, sometimes, uneasy to understand features. Main methods are studies of the available literature, especially recommended by Calomiris & Herring (2013) and Borio (2013). A particular attention has been paid to various models of CoCos.Findings confirm that there are still unidentified threats connected with CoCos that could jeopardize future proper functioning of a financial system and then – a real economy. Still, if not materialized, these threats will by easily outweighed by advantages for resistant balance sheets of banks. CoCos can serve as a valuable instrument to upgrade a capital base of banks. However, it is important to make some efforts to design certain standardized features to enable comparison and valuation, to avoid unintended negative consequences for banks and economy, as a whole. Negative consequences for banks could result from overreliance on this source of capital and for economy – in a form of rescue packages from taxpayers money.Studies are an attempt of a comparison of pros and cons of CoCos. Moreover, it is an attempt to present CoCos in a broader context of banking regulations.
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| Publisher |
Cracow University of Economics
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| Date |
2015-05-05
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article — |
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| Format |
application/pdf
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| Identifier |
http://www.eber.uek.krakow.pl/index.php/eber/article/view/74
10.15678/EBER.2015.030110 |
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| Source |
Entrepreneurial Business and Economics Review; Vol 3, No 1 (2015): Social Entrepreneurship and Socio-Economic Development; 135-149
2353-8821 2353-883X |
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| Language |
eng
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| Relation |
http://www.eber.uek.krakow.pl/index.php/eber/article/view/74/87
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| Rights |
Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a CC BY-NC-ND licence that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.Authors are asked to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). We advise to use any of the following reserach society portals:ResearchGateSSRNAcademia.eduSelected WorksAcademic Search
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