Stress Testing, Recovery Plans and Early Intervention: How to deal
... – 10 October 2011: Belgium, France and Luxembourg agree to restructure Dexia and to grant it a financing guarantee of up to 90 billion euro. – EBA comments: unable to mark down sovereign debt, mentioned weak position if sovereign debt marked to market Bankia’s Core Tier 1 ratio would fall to 5,4% ...
... – 10 October 2011: Belgium, France and Luxembourg agree to restructure Dexia and to grant it a financing guarantee of up to 90 billion euro. – EBA comments: unable to mark down sovereign debt, mentioned weak position if sovereign debt marked to market Bankia’s Core Tier 1 ratio would fall to 5,4% ...
Assets Liabilities Management In Islamic Banking
... profit and loss sharing (PLS) will decline allowances for bad and doubtful financing. In case of bankruptcy and investment loss, amounts of investment is directly booked in costs accounts and therefore, the financial statement is more transparent in Islamic banking than conventional banking. Financi ...
... profit and loss sharing (PLS) will decline allowances for bad and doubtful financing. In case of bankruptcy and investment loss, amounts of investment is directly booked in costs accounts and therefore, the financial statement is more transparent in Islamic banking than conventional banking. Financi ...
World Trade Organization Economic Research and Statistics Division
... frequent. Credit allocation quotas often existed and/or governments imposed controls on interest rates and barriers to entry in the banking sector. These interventions often resulted in high interest rate spreads harming both lenders and borrowers and resulting in a shallow financial market. Besides ...
... frequent. Credit allocation quotas often existed and/or governments imposed controls on interest rates and barriers to entry in the banking sector. These interventions often resulted in high interest rate spreads harming both lenders and borrowers and resulting in a shallow financial market. Besides ...
market structure and bank competition conditions
... order to diversify their business. Not only these institutions offer loans such as term deposits but they also offer other banking products related to risk management, investments and retirement plans. As a result, their services overlap and competition between the institutions increased. The advanc ...
... order to diversify their business. Not only these institutions offer loans such as term deposits but they also offer other banking products related to risk management, investments and retirement plans. As a result, their services overlap and competition between the institutions increased. The advanc ...
15/RT/14 The effect of macroprudential policy on endogenous credit cycles
... real economy. The financial sector played a key role in both triggering and propagating the crisis through macro-financial linkages.1 Macro-financial feedback loops can increase the persistence and the amplitude of macroeconomic fluctuations. Therefore, a good understanding of business cycle dynamic ...
... real economy. The financial sector played a key role in both triggering and propagating the crisis through macro-financial linkages.1 Macro-financial feedback loops can increase the persistence and the amplitude of macroeconomic fluctuations. Therefore, a good understanding of business cycle dynamic ...
Profit Differentials Between Canadian and U.S. Commercial Banks
... established an effective lender of last resort. Policy objectives, however, moved towards placing commercial banks in a more competitive position with nonbanks in the mid- 1960s. The new public policy course in Canada was primarily the result of recommendations by the Royal Commission on Banking and ...
... established an effective lender of last resort. Policy objectives, however, moved towards placing commercial banks in a more competitive position with nonbanks in the mid- 1960s. The new public policy course in Canada was primarily the result of recommendations by the Royal Commission on Banking and ...
Were Banks Special Intermediaries in the Late Nineteenth Century
... Eugene N. White is a professor of economics at Rutgers University. The author thanks Michael Bordo, Per Hansen, Naomi Lamoreaux, David Weil, David Wheelock, and the other participants in the Federal Reserve Bank of St. Louis’ Twenty-Second Annual Economic Policy Conference ...
... Eugene N. White is a professor of economics at Rutgers University. The author thanks Michael Bordo, Per Hansen, Naomi Lamoreaux, David Weil, David Wheelock, and the other participants in the Federal Reserve Bank of St. Louis’ Twenty-Second Annual Economic Policy Conference ...
Bank capital and Risk-Taking: Old and New
... the downside with debtholders. This asymmetry explains why shareholders have incentives to increase the riskiness of the firm, especially when leverage is high. By nature, banks are firms that are leveraged. It is even the starting point of a bank’s business as they have the vocation to collect depos ...
... the downside with debtholders. This asymmetry explains why shareholders have incentives to increase the riskiness of the firm, especially when leverage is high. By nature, banks are firms that are leveraged. It is even the starting point of a bank’s business as they have the vocation to collect depos ...
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... identification of corporate trickery. One can only wonder what such skilled people could achieve given the right incentive and an education in the true financial alternative. The Biblical expression of ‘swords to ploughshares’ sums up this hope nicely and would be the perfect metamorphosis of turning ...
... identification of corporate trickery. One can only wonder what such skilled people could achieve given the right incentive and an education in the true financial alternative. The Biblical expression of ‘swords to ploughshares’ sums up this hope nicely and would be the perfect metamorphosis of turning ...
Transforming investment banks
... initiatives will gather pace but are insufficient to improve performance differentially Most investment banks have initiated portfolio optimization programs and the unwinding or restructuring of certain positions, or the sale of specific non-core, capital-intensive assets. In addition, banks are mak ...
... initiatives will gather pace but are insufficient to improve performance differentially Most investment banks have initiated portfolio optimization programs and the unwinding or restructuring of certain positions, or the sale of specific non-core, capital-intensive assets. In addition, banks are mak ...
Risk profile of households and the impact on financial stability
... Household sector balance sheet in Indonesia Understanding the importance of monitoring the household sector in Indonesia, BI has applied the balance sheet approach framework to this sector. However, in contrast with the financial and corporate sectors, the availability of data on Indonesia’s househo ...
... Household sector balance sheet in Indonesia Understanding the importance of monitoring the household sector in Indonesia, BI has applied the balance sheet approach framework to this sector. However, in contrast with the financial and corporate sectors, the availability of data on Indonesia’s househo ...
Balancing the Banks: Global Lessons from the Financial Crisis
... its capital falls below the regulatory solvency ratio, as defined by the Basel I and II international agreements. Such definitions, although increasingly complex over time, nonetheless yield only rough approximations of a bank’s riskiness; for example, they concentrate only on credit risk, and do no ...
... its capital falls below the regulatory solvency ratio, as defined by the Basel I and II international agreements. Such definitions, although increasingly complex over time, nonetheless yield only rough approximations of a bank’s riskiness; for example, they concentrate only on credit risk, and do no ...
Minsky at Basel: how to build an effective banking
... GDP in 1980 to ten times GDP in 2007. In 1981 household debt was 48% of GDP, while in 2007 it was 100%. Private sector debt was 123% of GDP in 1981 and 290% by late 2008. The financial sector has been in a leveraging frenzy: its debt rose from 22% of GDP in 1981 to 117% in late 2008. The share of c ...
... GDP in 1980 to ten times GDP in 2007. In 1981 household debt was 48% of GDP, while in 2007 it was 100%. Private sector debt was 123% of GDP in 1981 and 290% by late 2008. The financial sector has been in a leveraging frenzy: its debt rose from 22% of GDP in 1981 to 117% in late 2008. The share of c ...
Sovereign Default and Banking - Western University Economics
... The only equilibrium in the environment described so far is “excessive risk-taking” by all banks. All banks create portfolios of perfectly correlated risky projects, promise return i = R − 1, and repay depositors only with probability p. Note that while depositors would prefer to receive a lower int ...
... The only equilibrium in the environment described so far is “excessive risk-taking” by all banks. All banks create portfolios of perfectly correlated risky projects, promise return i = R − 1, and repay depositors only with probability p. Note that while depositors would prefer to receive a lower int ...
Finance in Africa: Achievements and Challenges
... with the status of African financial sectors as bankrather than market-based systems. The focus of financial policymakers on improving the infrastructure necessary for sound and efficient banking—such as establishing credit registries, upgrading collateral registries, and improving creditor rights—i ...
... with the status of African financial sectors as bankrather than market-based systems. The focus of financial policymakers on improving the infrastructure necessary for sound and efficient banking—such as establishing credit registries, upgrading collateral registries, and improving creditor rights—i ...
Capital requirements under Basel III and their impact on the banking
... during periods of lower capital ratios, greater risk has been taken on, and to what extent any potential correlation is due to a causal relationship between the two variables. The long-term evidence provided by Berger et al. (1995) and Kashyap et al. (2010) for the United States shows that capital r ...
... during periods of lower capital ratios, greater risk has been taken on, and to what extent any potential correlation is due to a causal relationship between the two variables. The long-term evidence provided by Berger et al. (1995) and Kashyap et al. (2010) for the United States shows that capital r ...
is the SEC adequately protecting the nation’s capital markets
... First is the possibility that the behavior of hedge funds in periods of market stress could amplify rather than mitigate the shock, induce larger moves in asset prices, or cause broader damage to the functioning of markets when it is most important they function well. Second is the possibility that ...
... First is the possibility that the behavior of hedge funds in periods of market stress could amplify rather than mitigate the shock, induce larger moves in asset prices, or cause broader damage to the functioning of markets when it is most important they function well. Second is the possibility that ...
