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Chapter 8
Chapter 8

financing globalization: lessons from economic history
financing globalization: lessons from economic history

... The industrial revolution in the 18th century not only transformed the way we manufacture and consume, it also profoundly impacted the use of money. In an agricultural, self-subsistent society, the circulation of money was limited. Farmers did not need a lot of money. All this changed with large con ...
CH. 20 - Bakersfield College
CH. 20 - Bakersfield College

... The Many Faces of Money  Money  Anything generally accepted as a means of paying for goods and services  serves as a medium of exchange, a unit of accounting, a store of value, and a standard of deferred value ...
Microcredit: Conceptual Aspects Asymmetry of Information
Microcredit: Conceptual Aspects Asymmetry of Information

... case of non-compliance possibly including subjective collective punishments, such as symbolic loss of capital within the community, and even physical aggressions and other types of social sanctions. Another key to success in this type of scheme, as shown by Ghatak (1999), is that joint liability cre ...
On the resolution of banking crises
On the resolution of banking crises

... seriously increase moral hazard. Making government support conditional can reduce this problem, for example, through replacing management, eliminating or downgrading existing shareholders’ interests, or mandating an infusion of private sector capital. Open bank assistance has often required repeated ...
Money market
Money market

DETERMINANTS OF NATIONAL AND CROSS BORDER BANK
DETERMINANTS OF NATIONAL AND CROSS BORDER BANK

... and eastern European countries suffered banking crises in the early years of their independence and allowed their failed banks to be acquired by foreign banks. 9 Other special circumstances have fostered those acquisitions such as run-up to EU membership and the privatization process. Three new memb ...
Credit Rating Agencies` Decisions and ISDA`s Credit Events
Credit Rating Agencies` Decisions and ISDA`s Credit Events

... nonnegotiable) and the variable (the “Schedule”) part (which is negotiable between the counterparties). Some key negotiation points are: the currency, the payment threshold (“Threshold Amount”), the minimum credit guarantees transfer amount (“Minimum Transfer Amount”), etc. As Harding et al. (2002) ...
fund risks - Royal London pensions for employers and trustees
fund risks - Royal London pensions for employers and trustees

... their value is not guaranteed and may fall. Money market instruments would usually be expected to produce lower returns than other asset classes over the long-term. Stock lending The fund may lend the stocks and shares it holds to other funds in return for a fee. This can help fund performance as at ...
The Political Economy of Financial Regulation after the Crisis
The Political Economy of Financial Regulation after the Crisis

... regulation than do the multitudes of beneficiaries, each of whom may only benefit from correcting the market failure by a tiny amount. The failure by various government agencies to prevent the explosion of securities backed by subprime mortgages that shouldn’t have been constructed and sold and whos ...
(Fiduciary) Fund
(Fiduciary) Fund

Bank capital adequacy rules: rationale and consequences
Bank capital adequacy rules: rationale and consequences

... Minimum Capital requirements: The minimum for common equity: highest form of loss-absorbing capital – raised from  2% to 4.5% of total risk-weighted assets and Tier I capital ratio from 4% to 6%. ...
What Determines the Banking Sector Performance in Globalized
What Determines the Banking Sector Performance in Globalized

... which makes up around three fourths of the financial system, experienced a period of high and volatile inflation and interest rates. Political pressures were felt considerably in the banking sector throughout the 1990s. The motivation behind the banking sector activities and behind opening up new ba ...
Aucun titre de diapositive
Aucun titre de diapositive

... risk capital they will now have to maintain • If a bank can structure a loan to reduce LGD by half, the capital requirement falls by half. Banks may respond by giving more emphasis to LGD. This is called “lending on collateral”. It has been a profitable lending activity for asset-based finance compa ...
The European Central Bank: Lender of Last Resort in the
The European Central Bank: Lender of Last Resort in the

... monetary   union   prone   to   liquidity   crises   and   forces   of   contagion,   very   much   like   banking   systems   that   lack   a   lender   of   last   resort.   In   such   banking   systems,   solvency   problems   in   one ...
Corporate Governance of Financial Institutions
Corporate Governance of Financial Institutions

1 The Aftermath of the Crisis: Regulation, Supervision and the Role
1 The Aftermath of the Crisis: Regulation, Supervision and the Role

... has once again become a major concern of policy makers; central banks are being heavily involved in this endeavour. A clear need has emerged for a substantial overhaul in financial regulation and supervision, also considering that the financial system of tomorrow will most likely be rather different ...
1111823359_323913
1111823359_323913

... Concerning Money and Banking 3. Interest rates on long-term loans generally are higher than interest rates on short-term loans – Factors: lender’s preferences, the riskiness of the loans, expected future changes in short-term interest rates – The difference between short- and longterm interest rates ...
Issues in the Financing of Small and Medium Enterprises in China
Issues in the Financing of Small and Medium Enterprises in China

financial market
financial market

... The claims of the holder of a financial asset may be either a fixed dollar amount or a varying, or residual, amount. In the former case, the financial assets is referred to as a debt instrument since it requires fixed dollar payments to borrow the funds (bonds). An equity claim (residual claim) obli ...
Financialisation, Business Lending And Profitability In The UK
Financialisation, Business Lending And Profitability In The UK

... characteristics of banks that affect their profitability? In this study we concentrate on two such characteristics, namely, size and ownership. We assess whether there are differences in terms of profitability between small and large banks and between foreign and domestic banks. In this study we ana ...
Plan Investments in Bank Collective Investment Funds
Plan Investments in Bank Collective Investment Funds

... applicable banking and other regulations and laws governing its trust activities, including the management of its CIFs. OCC banking regulations require that CIFs be audited at least once every 12 months by auditors responsible only to the bank’s board of directors. The regulations do not specify tha ...
Risk in emerging markets
Risk in emerging markets

... The result is that risk management has now moved to the top of the agenda for CEOs and their boards. The risk function is increasingly being asked to shift away from its traditional focus on measurement, compliance, and control and toward mitigating existing challenges on credit, capital allocation, ...
Macroprudential Policy with Liquidity Panics - SIEPR
Macroprudential Policy with Liquidity Panics - SIEPR

... How do firms react to the liquidity shortages generated by financial crises? Does the reaction by firms contribute to disrupt the financial sector? In particular, how do firms’ investment decisions influence the equilibrium in the market for interbank loans and viceversa? Understanding the interacti ...
The Regulatory Responses to the Global Financial Crisis
The Regulatory Responses to the Global Financial Crisis

... collateral limited the system’s ability to absorb even small shocks. This led to a rapid decline in collateral values (notably of houses and their related structured credit products), which shook confidence. Fear of counterparty defaults in major financial institutions – that were highly leveraged, ...
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Shadow banking system

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. Former Federal Reserve Chair Ben Bernanke provided a definition in April 2012: ""Shadow banking, as usually defined, comprises a diverse set of institutions and markets that, collectively, carry out traditional banking functions--but do so outside, or in ways only loosely linked to, the traditional system of regulated depository institutions. Examples of important components of the shadow banking system include securitization vehicles, asset-backed commercial paper (ABCP) conduits, money market mutual funds, markets for repurchase agreements (repos), investment banks, and mortgage companies."" Shadow banking has grown in importance to rival traditional depository banking but was a primary factor in the subprime mortgage crisis of 2007-2008 and global recession that followed.
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