English, Article edition: Lessons from the Northern Rock affair Kevin Keasey; Gianluca Veronesi

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/31184
Physical Description
  • article
Language
  • English

Edition details

Title
  • Lessons from the Northern Rock affair
Author
  • Kevin Keasey
  • Gianluca Veronesi
Physical Description
  • article
Notes
  • Purpose – This paper seeks to analyse reasons behind the difficulties faced by Northern Rock (NR) and the UK financial system and proposes a return to a more traditional/​prudent banking business model, based on a sound balance between sources and uses of funds. Design/​methodology/​approach – The paper outlines the background to the credit crunch and presents a simple model of a bank and NR's business model. Conclusions and implications are drawn. Findings – It is suggested that credit rating agencies should provide a better assessment of the risks involved in securitised instruments by focusing on clarity and transparency and hence allowing liquidity risk of loan originators to be comprehensively understood. Moreover, the efficacy of the existing regulatory framework requires the tripartite system of supervision (Treasury, Bank of England, and FSA) to assume a more alert role in order to avoid asset bubbles in the first place rather than intervening ex post. Originality/​value – The paper will give rise to a series of new research streams – all of which are much needed, given the fragile state of the financial systems.
  • Banking, Banks, Credit rating, Financial modelling, Regulation, United Kingdom
  • RePEc:eme:jfrcpp:v:16:y:2008:i:1:p:8-18
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment