Efficiency Determinants and Dynamic Efficiency Changes in Latin
... American banks purchased unrelated companies that required a number of banking managers to be transferred to business areas with which they were unfamiliar. Others acquired very risky, high-expected-yield, long-term investments such as junk bonds. Taking on these risky investments, coupled with incr ...
... American banks purchased unrelated companies that required a number of banking managers to be transferred to business areas with which they were unfamiliar. Others acquired very risky, high-expected-yield, long-term investments such as junk bonds. Taking on these risky investments, coupled with incr ...
Credit Misallocation During the Financial Crisis
... An important dimension of financial crises is a weakened banking sector. There is a widespread perception in the policy debate that under-capitalized banks can prolong depression by misallocating credit to weaker firms in the verge of bankruptcy and restraining credit to healthy borrowers. This perc ...
... An important dimension of financial crises is a weakened banking sector. There is a widespread perception in the policy debate that under-capitalized banks can prolong depression by misallocating credit to weaker firms in the verge of bankruptcy and restraining credit to healthy borrowers. This perc ...
Financing Growth without Banks: Korean Housing Repo Contract
... A snapshot of the cost of intermediated finance in developing countries can be seen in Figure 1, which plots the spread between the bank lending rate and the deposit rate for 87 countries whose per capita GDP averaged less than $10,000 during the period 2000 - 2009. The average spread is 9.3 percent ...
... A snapshot of the cost of intermediated finance in developing countries can be seen in Figure 1, which plots the spread between the bank lending rate and the deposit rate for 87 countries whose per capita GDP averaged less than $10,000 during the period 2000 - 2009. The average spread is 9.3 percent ...
Do Loan Commitments Cause Overlending?
... My results depend critically on two features that make banks different from other firms. One is that they operate largely in forward credit markets by selling commitments. Kashyap, Rajan, and Stein (2002) point out that selling loan commitments is an economically-natural function of banks since they ...
... My results depend critically on two features that make banks different from other firms. One is that they operate largely in forward credit markets by selling commitments. Kashyap, Rajan, and Stein (2002) point out that selling loan commitments is an economically-natural function of banks since they ...
Lobbying on Regulatory Enforcement Actions: Evidence from U.S.
... for national banks lobbying the OCC. Critically, these results are robust to controlling for bank fixed effects, changes in local economic conditions and variables proxying each of the six components of the CAMELS rating (i.e., the U.S. supervisory rating), which serves as decision criteria in the ...
... for national banks lobbying the OCC. Critically, these results are robust to controlling for bank fixed effects, changes in local economic conditions and variables proxying each of the six components of the CAMELS rating (i.e., the U.S. supervisory rating), which serves as decision criteria in the ...
financial_markets_and_institutions(1)
... In Africa, the absence of effective capital markets and other sources of long-term finance (e.g. venture capital and equity finance) compounds the acute shortage of investment and small firm finance, and imposing allocation controls such as preferential interest rates and targeted credit programmes. ...
... In Africa, the absence of effective capital markets and other sources of long-term finance (e.g. venture capital and equity finance) compounds the acute shortage of investment and small firm finance, and imposing allocation controls such as preferential interest rates and targeted credit programmes. ...
How Does the Market View Bank Regulatory Capital Forbearance
... regulatory forbearance policy can be treated as “reduced form” and described by a state variable. Further, the policy is constrained by economic, legal, political, regulatory competition, and bureaucratic considerations that are mean-reverting throughout their cycles. Indeed, two main sources of unc ...
... regulatory forbearance policy can be treated as “reduced form” and described by a state variable. Further, the policy is constrained by economic, legal, political, regulatory competition, and bureaucratic considerations that are mean-reverting throughout their cycles. Indeed, two main sources of unc ...
Banks bailout, time-consistency and distributional effects
... risk-free liquid savings. Bankers on the other hand face a similar labor market risk but have access to both a risk-free and risky investment opportunities. Moreover, bankers can use collected deposits as a leverage in addition to their own wealth when investing, as long as they abide by a prudentia ...
... risk-free liquid savings. Bankers on the other hand face a similar labor market risk but have access to both a risk-free and risky investment opportunities. Moreover, bankers can use collected deposits as a leverage in addition to their own wealth when investing, as long as they abide by a prudentia ...
The Dark Side of Bank Wholesale Funding
... wholesale …nanciers always roll over funding at the re…nancing stage as banks are on average solvent (no news is good news). However, with a noisy public signal, wholesale …nanciers (endogenously) uninformed about bank-speci…c fundamentals can now choose to liquidate a bank based solely on a negativ ...
... wholesale …nanciers always roll over funding at the re…nancing stage as banks are on average solvent (no news is good news). However, with a noisy public signal, wholesale …nanciers (endogenously) uninformed about bank-speci…c fundamentals can now choose to liquidate a bank based solely on a negativ ...
The Pass-Through of Sovereign Risk ∗ Luigi Bocola January 2014
... Having established the good fit of the model using posterior predictive analysis, I use it to answer two applied questions. First, I quantify the importance of the leverage-constraint channel and the risk channel for the propagation of sovereign credit risk to the financing premia of firms and outpu ...
... Having established the good fit of the model using posterior predictive analysis, I use it to answer two applied questions. First, I quantify the importance of the leverage-constraint channel and the risk channel for the propagation of sovereign credit risk to the financing premia of firms and outpu ...
The Pass-Through of Sovereign Risk ∗ Luigi Bocola January 2014
... Having established the good fit of the model using posterior predictive analysis, I use it to answer two applied questions. First, I quantify the importance of the leverage-constraint channel and the risk channel for the propagation of sovereign credit risk to the financing premia of firms and outpu ...
... Having established the good fit of the model using posterior predictive analysis, I use it to answer two applied questions. First, I quantify the importance of the leverage-constraint channel and the risk channel for the propagation of sovereign credit risk to the financing premia of firms and outpu ...
Monetary policy in albania: froM the past to the
... In Martin Luther King’s words “We may have all come on different ships, but we’re in the same boat now”. Dwelling a little longer on the regional theme, I would like to briefly touch on another problem. The experience of the past year shows that as a result of the regulatory capital requirements imp ...
... In Martin Luther King’s words “We may have all come on different ships, but we’re in the same boat now”. Dwelling a little longer on the regional theme, I would like to briefly touch on another problem. The experience of the past year shows that as a result of the regulatory capital requirements imp ...
Research into the International Capital
... inhibits attempts at meaningful inter-jurisdictional comparisons. The Basel Committee on Banking Supervision sets out three Pillars for a sound financial system. The first imposes industrywide capital requirements, and the third draws on market discipline by forcing banks to show how they meet those ...
... inhibits attempts at meaningful inter-jurisdictional comparisons. The Basel Committee on Banking Supervision sets out three Pillars for a sound financial system. The first imposes industrywide capital requirements, and the third draws on market discipline by forcing banks to show how they meet those ...
Vo l u m e 6 6 ... C o n t e n t s
... that, although New Zealand’s neutral real rate has declined, it remains higher than in some other developed economies, such as the United States and, to a lesser extent, Australia. The article discusses why this is so and what factors might influence the future direction of the neutral real rate in ...
... that, although New Zealand’s neutral real rate has declined, it remains higher than in some other developed economies, such as the United States and, to a lesser extent, Australia. The article discusses why this is so and what factors might influence the future direction of the neutral real rate in ...
The Role of Investment Banking for the German Economy
... relevant for financing companies as well as the development and use of specif‐ ic products to support the needs of private and professional clients. The as‐ sessment of benefits and costs of investment banking has been conducted from a European perspective. Nevertheless t ...
... relevant for financing companies as well as the development and use of specif‐ ic products to support the needs of private and professional clients. The as‐ sessment of benefits and costs of investment banking has been conducted from a European perspective. Nevertheless t ...
Macroeconomic Stability and Financial Regulation: Key Issues for
... • Mitigate procyclicality by adjusting the Basel II capital requirements using a multiplier based on macroeconomic conditions. • Create a centralized clearing counterparty for CDS trades without further delay. Consider requiring that CDS be exchange-traded and prohibiting naked CDS. • Sever the link ...
... • Mitigate procyclicality by adjusting the Basel II capital requirements using a multiplier based on macroeconomic conditions. • Create a centralized clearing counterparty for CDS trades without further delay. Consider requiring that CDS be exchange-traded and prohibiting naked CDS. • Sever the link ...
Confronting Financial Crisis: Dodd
... crisis, it will be impossible to guarantee the safety of a complex financial system operating on global scale. The result? The failure of any systemically important firm will be a shock. The receivership of a large firm, even if well managed, will roil markets domestically and internationally. It co ...
... crisis, it will be impossible to guarantee the safety of a complex financial system operating on global scale. The result? The failure of any systemically important firm will be a shock. The receivership of a large firm, even if well managed, will roil markets domestically and internationally. It co ...
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... In the name of Allah, most Gracious, most Merciful On behalf of the Board of Directors, it gives me great pleasure to present the annual report of Ithmaar Bank and its subsidiaries, associates and joint ventures for the year ended 31 December 2008. It was a challenging year that might well be rememb ...
... In the name of Allah, most Gracious, most Merciful On behalf of the Board of Directors, it gives me great pleasure to present the annual report of Ithmaar Bank and its subsidiaries, associates and joint ventures for the year ended 31 December 2008. It was a challenging year that might well be rememb ...
Financial System Review - December 2012
... and banks have retained access to low-cost funding across the term structure. Financial markets in Canada have been more stable than their global counterparts. Corporate leverage in Canada is at an all-time low and firms have good access to credit from both banks and capital markets. Nevertheless, t ...
... and banks have retained access to low-cost funding across the term structure. Financial markets in Canada have been more stable than their global counterparts. Corporate leverage in Canada is at an all-time low and firms have good access to credit from both banks and capital markets. Nevertheless, t ...
PAVING THE WAY FOR A SUSTAINABLE RECOVERY PositiveMoney
... tax cuts via money creation, termed Sovereign Money Creation (SMC), and consider the economic effects of the proposal. The benefits of using SMC as a normal policy lever are also discussed. In Part 2 we provide more detail on the implementation and management of Sovereign Money Creation. First the t ...
... tax cuts via money creation, termed Sovereign Money Creation (SMC), and consider the economic effects of the proposal. The benefits of using SMC as a normal policy lever are also discussed. In Part 2 we provide more detail on the implementation and management of Sovereign Money Creation. First the t ...
annual hyman p. minsky conference on the state of the us and world
... To many, all these regulatory changes have provided the means for the financial system to withstand the occasional shock. The Dodd-Frank Reform Act is indeed based on the idea that financial markets are normally stable, with the exceptional alarming event. Dodd-Frank was an attempt to remedy random ...
... To many, all these regulatory changes have provided the means for the financial system to withstand the occasional shock. The Dodd-Frank Reform Act is indeed based on the idea that financial markets are normally stable, with the exceptional alarming event. Dodd-Frank was an attempt to remedy random ...
Volume 73 No. 4, December 2010 Contents
... person who offers debt securities to the public in New Zealand and carries on the business of borrowing and lending money, or providing financial services, or both.” Banks, collective investment schemes, local authorities and the Crown are specifically excluded. In this paper, we use the term NBDT t ...
... person who offers debt securities to the public in New Zealand and carries on the business of borrowing and lending money, or providing financial services, or both.” Banks, collective investment schemes, local authorities and the Crown are specifically excluded. In this paper, we use the term NBDT t ...
Banks` Endogenous Systemic Risk Taking
... which social welfare turns out to be maximized under a relatively large capital requirement, 14%. To fix ideas, we compare the scenario with the optimal capital requirement with a baseline scenario with a 7% capital requirement (a level close to the requirements of core Tier 1 capital set by Basel I ...
... which social welfare turns out to be maximized under a relatively large capital requirement, 14%. To fix ideas, we compare the scenario with the optimal capital requirement with a baseline scenario with a 7% capital requirement (a level close to the requirements of core Tier 1 capital set by Basel I ...
Experience with foreign currency liquidity-providing central bank
... design of the facility established between central banks as well as the modalities with which funds are provided to the market. Section 3.1 assesses the specific objectives pursued by the ECB with the foreign currency swaps deployed at various points in time, considering also the corresponding desig ...
... design of the facility established between central banks as well as the modalities with which funds are provided to the market. Section 3.1 assesses the specific objectives pursued by the ECB with the foreign currency swaps deployed at various points in time, considering also the corresponding desig ...
Optimal Monetary and Prudential Policies
... similarly view financial instability as the result of excessive borrowing. In these contributions, a pecuniary externality associated with a collateral constraint plays a central role: it makes an economic expansion increase the value of borrowers’ collateral and leads to excessive borrowing. A tax ...
... similarly view financial instability as the result of excessive borrowing. In these contributions, a pecuniary externality associated with a collateral constraint plays a central role: it makes an economic expansion increase the value of borrowers’ collateral and leads to excessive borrowing. A tax ...
Bank
A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.