Escape from the Castle is a digital escape game created with the collaboration of the Museum of S... more Escape from the Castle is a digital escape game created with the collaboration of the Museum of Saving in Turin (Italy), Neuroscience Lab Intesa Sanpaolo Innovation Center, and the GAME Science Research Center of IMT School for Advanced Studies Lucca. In the escape game, players must help Mica, the mascot of the Museum, to run away from the Ghost of the Baroness, from its Castle. To do that, every player has to solve four puzzles in four different rooms. Each room is correlated to a financial issue, such as saving strategies and planning. The game aims to increase the awareness that money represents a means for achieving a purpose (i.e., use value of money) and not an end, from a behavioural and neuroscientific point of view. So we built a study about the behaviour of teenagers. According to the literature, the cooperative approach proposes emotional and cognitive involvement as a tool to strengthen learning, increases awareness of self-efficacy and, when applied to money management...
Abstract We investigate the time varying dynamics of the linkages between sovereign and bank defa... more Abstract We investigate the time varying dynamics of the linkages between sovereign and bank default risks over the period 2006–2015, using the credit default swap (CDS) spreads of the bonds of major banks and sovereign issuers in the EMU. The nexus between bank risk in core countries and sovereign risk of peripheral countries is also analyzed and found to be relevant. The use of a time-varying regime switching analysis, the STCC-GARCH, identifies the asymmetric impact of the economic variables behind the state shifts, the so-called “transition variables”. This approach also dates both the positive shifts in the size of the nexus that are due to financial shocks (viz. the Lehman crisis, the evolution of the Greek crisis) and the negative shifts that follow the implementation of unconventional monetary policy measures.
We use the results of the ECB's Comprehensive Assessment to evaluate the importance of bank b... more We use the results of the ECB's Comprehensive Assessment to evaluate the importance of bank business model on risk assessment and the persuasive effectiveness of different supervisory styles on banks’ recapitalization. Our analysis reveals inconsistencies in the information content provided by the various regulatory measures used for assessing bank stability. Moreover, opposite to the RWA density and CET1 ratio, the leverage ratio provides assessments on business models closer to a market-based measure of bank risk. We also find that the effectiveness of the supervisory action depends on the specific type of supervisory model. In particular, countries adopting the hybrid model are more severe and effective in persuading banks to recapitalize preventively. Differently, countries adopting the integrated and the sectorial model seem less prone or able to be effective in their requests.
International Journal of Accounting and Financial Reporting, 2018
The Greek crisis has brought to light the strong nexus between the credit risks of European banks... more The Greek crisis has brought to light the strong nexus between the credit risks of European banks and their sovereign. We study this phenomenon in Germany, France, Italy and Spain by estimating the conditional correlations between sovereign and bank CDS bond spreads over the period 2006-2015. Trivariate time-varying regime switching correlation analyses, such as the STCC-GARCH and DSTCC-GARCH, are implemented to associate causally the state shifts to the dynamics of the so-called “transition variables”. We find evidence of significant changes in the correlation structures due to the evolution of both the Greek and Italian crises.
Escape from the Castle is a digital escape game created with the collaboration of the Museum of S... more Escape from the Castle is a digital escape game created with the collaboration of the Museum of Saving in Turin (Italy), Neuroscience Lab Intesa Sanpaolo Innovation Center, and the GAME Science Research Center of IMT School for Advanced Studies Lucca. In the escape game, players must help Mica, the mascot of the Museum, to run away from the Ghost of the Baroness, from its Castle. To do that, every player has to solve four puzzles in four different rooms. Each room is correlated to a financial issue, such as saving strategies and planning. The game aims to increase the awareness that money represents a means for achieving a purpose (i.e., use value of money) and not an end, from a behavioural and neuroscientific point of view. So we built a study about the behaviour of teenagers. According to the literature, the cooperative approach proposes emotional and cognitive involvement as a tool to strengthen learning, increases awareness of self-efficacy and, when applied to money management...
Abstract We investigate the time varying dynamics of the linkages between sovereign and bank defa... more Abstract We investigate the time varying dynamics of the linkages between sovereign and bank default risks over the period 2006–2015, using the credit default swap (CDS) spreads of the bonds of major banks and sovereign issuers in the EMU. The nexus between bank risk in core countries and sovereign risk of peripheral countries is also analyzed and found to be relevant. The use of a time-varying regime switching analysis, the STCC-GARCH, identifies the asymmetric impact of the economic variables behind the state shifts, the so-called “transition variables”. This approach also dates both the positive shifts in the size of the nexus that are due to financial shocks (viz. the Lehman crisis, the evolution of the Greek crisis) and the negative shifts that follow the implementation of unconventional monetary policy measures.
We use the results of the ECB's Comprehensive Assessment to evaluate the importance of bank b... more We use the results of the ECB's Comprehensive Assessment to evaluate the importance of bank business model on risk assessment and the persuasive effectiveness of different supervisory styles on banks’ recapitalization. Our analysis reveals inconsistencies in the information content provided by the various regulatory measures used for assessing bank stability. Moreover, opposite to the RWA density and CET1 ratio, the leverage ratio provides assessments on business models closer to a market-based measure of bank risk. We also find that the effectiveness of the supervisory action depends on the specific type of supervisory model. In particular, countries adopting the hybrid model are more severe and effective in persuading banks to recapitalize preventively. Differently, countries adopting the integrated and the sectorial model seem less prone or able to be effective in their requests.
International Journal of Accounting and Financial Reporting, 2018
The Greek crisis has brought to light the strong nexus between the credit risks of European banks... more The Greek crisis has brought to light the strong nexus between the credit risks of European banks and their sovereign. We study this phenomenon in Germany, France, Italy and Spain by estimating the conditional correlations between sovereign and bank CDS bond spreads over the period 2006-2015. Trivariate time-varying regime switching correlation analyses, such as the STCC-GARCH and DSTCC-GARCH, are implemented to associate causally the state shifts to the dynamics of the so-called “transition variables”. We find evidence of significant changes in the correlation structures due to the evolution of both the Greek and Italian crises.
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Papers by Giovanna Paladino