Financial Supply Chain Dynamics Risk Operational
... The bank's average return on equity (ROE) after tax improved from 14.3 percent in 2001 to 16.5 percent in 2002. However, the cost of equity increased too, leaving the economic spread between ROE and the cost of equity unchanged since 2002. Only a few countries experienced a real profitability squeez ...
... The bank's average return on equity (ROE) after tax improved from 14.3 percent in 2001 to 16.5 percent in 2002. However, the cost of equity increased too, leaving the economic spread between ROE and the cost of equity unchanged since 2002. Only a few countries experienced a real profitability squeez ...
Bank capital, interbank contagion, and bailout policy
... requirement to examine whether contagion happens and how much capital in the form of common stock or preferred stock must be provided when bailout is necessary. Our simulations show that contagion will not occur if the healthy bank properly anticipates Bank 2’s failure and increases its ex-ante opti ...
... requirement to examine whether contagion happens and how much capital in the form of common stock or preferred stock must be provided when bailout is necessary. Our simulations show that contagion will not occur if the healthy bank properly anticipates Bank 2’s failure and increases its ex-ante opti ...
The Lender of Last Resort in the Eurozone
... Regarding liquidity supply, a central bank typically has two options whenever it provides the finance sector with the necessary liquidity. One option is to provide liquidity for the entire system, via its monetary-policy operations (macro-level liquidity supply). The other option is for the central ...
... Regarding liquidity supply, a central bank typically has two options whenever it provides the finance sector with the necessary liquidity. One option is to provide liquidity for the entire system, via its monetary-policy operations (macro-level liquidity supply). The other option is for the central ...
Measuring and forecasting stress in the banking sector
... what is the present condition of the banking sector, and how will it evolve in the medium term? The first aim of this paper is to develop a “stress index”, summarising the current condition of the Swiss banking sector in one single measure. The second goal is to forecast the stress index with the in ...
... what is the present condition of the banking sector, and how will it evolve in the medium term? The first aim of this paper is to develop a “stress index”, summarising the current condition of the Swiss banking sector in one single measure. The second goal is to forecast the stress index with the in ...
"Al. I. CUZA" UNIVERSITY of IAŞI DOCTORAL SCHOOL
... proceedures and GDP, concluding mutual influence between the real economy and the banking market. We believe that, even with low efficiency in terms of lending for companies in restructuring procedures, the banking system can evolve and develop new products for restructuring situations, so that fina ...
... proceedures and GDP, concluding mutual influence between the real economy and the banking market. We believe that, even with low efficiency in terms of lending for companies in restructuring procedures, the banking system can evolve and develop new products for restructuring situations, so that fina ...
Islamic banking: Interest-free or interest-based?
... Our overall results, thus, suggest that Islamic banking, as it is practiced today in Malaysia, is not very different from conventional banking, and the alleged benefits of Islamic banking exist in theory only. There are two important implications associated with this finding: First, the key reason f ...
... Our overall results, thus, suggest that Islamic banking, as it is practiced today in Malaysia, is not very different from conventional banking, and the alleged benefits of Islamic banking exist in theory only. There are two important implications associated with this finding: First, the key reason f ...
Consumer Protection - Financial System Inquiry
... protect depositors in the event of financial failure of an institution; ¾consumer rules administered by the Insurance and Superannuation ...
... protect depositors in the event of financial failure of an institution; ¾consumer rules administered by the Insurance and Superannuation ...
Banking structures report, October 2014
... The findings in this article suggest that the activation and calibration of policy measures such as the systemic risk buffer (SRB) should be mindful of the cyclical position of the banking system. In addition, the results confirm that the activation and calibration of counter-cyclical policy measure ...
... The findings in this article suggest that the activation and calibration of policy measures such as the systemic risk buffer (SRB) should be mindful of the cyclical position of the banking system. In addition, the results confirm that the activation and calibration of counter-cyclical policy measure ...
Institutions, Public Debt and Foreign Finance
... Sovereign risk models typically focus on public debt (e.g. Arellano 2008), but even if they allow for private flows (e.g. Broner and Ventura 2007), they view them as mere substitutes of public ones. Section 5 documents some patterns of cross country capital flows that are consistent with complementa ...
... Sovereign risk models typically focus on public debt (e.g. Arellano 2008), but even if they allow for private flows (e.g. Broner and Ventura 2007), they view them as mere substitutes of public ones. Section 5 documents some patterns of cross country capital flows that are consistent with complementa ...
Central Bank Digital Currencies: assessing
... Money has been traditionally defined as a financial asset (or contract) that serves three distinct roles: 1. Medium of exchange (which has removed reliance on barter economies); 2. Store value; and 3. Unit of account (or numeraire, i.e., a reference to facilitate the determination of all relative pr ...
... Money has been traditionally defined as a financial asset (or contract) that serves three distinct roles: 1. Medium of exchange (which has removed reliance on barter economies); 2. Store value; and 3. Unit of account (or numeraire, i.e., a reference to facilitate the determination of all relative pr ...
in Central, Eastern, and Southern European
... macroeconomic conditions, and domestic and parent bank fundamentals all played a role. Interestingly, the results suggest that while macroeconomic factors were important, particularly in the early phases of the crisis, bank fundamentals gained relevance over time. In particular, depressed credit lev ...
... macroeconomic conditions, and domestic and parent bank fundamentals all played a role. Interestingly, the results suggest that while macroeconomic factors were important, particularly in the early phases of the crisis, bank fundamentals gained relevance over time. In particular, depressed credit lev ...
Monetary Policy and the Zero Bound
... reserve balances than are demanded at the current overnight interest rate, which pushes the overnight rate lower. A key issue for the central bank is to decide how many reserve balances to supply to achieve its ultimate objectives of price stability and sustainable economic growth. One traditional m ...
... reserve balances than are demanded at the current overnight interest rate, which pushes the overnight rate lower. A key issue for the central bank is to decide how many reserve balances to supply to achieve its ultimate objectives of price stability and sustainable economic growth. One traditional m ...
The Cost-Benefit of Regulation in South African Banking
... partial fulfilment of the requirements of the degree of Master of Business Administration for the Gordon Institute of Business Science, University of Pretoria. It has not been submitted before for any degree or examination in any other ...
... partial fulfilment of the requirements of the degree of Master of Business Administration for the Gordon Institute of Business Science, University of Pretoria. It has not been submitted before for any degree or examination in any other ...
Internal Finance versus Bank Debt
... and Polonchek (1993) justifies our assumption that this is the case. Borrowers with no debt histories, or shorter histories, generally face less favorable loan conditions than do borrowers with longer debt histories. This paper’s result that firms may prefer bank debt to internal finance reverses a ...
... and Polonchek (1993) justifies our assumption that this is the case. Borrowers with no debt histories, or shorter histories, generally face less favorable loan conditions than do borrowers with longer debt histories. This paper’s result that firms may prefer bank debt to internal finance reverses a ...
What Makes a Good ʽBad Bankʼ? The Irish, Spanish and German
... With regards to ownership, AMCs can be public or private entities, or a mixture of both. When the owners are the banks themselves, it raises some issues because ultimately, the risk of losses on the impaired assets is still with the banks. The operational division line with the ‘main’ bank can be de ...
... With regards to ownership, AMCs can be public or private entities, or a mixture of both. When the owners are the banks themselves, it raises some issues because ultimately, the risk of losses on the impaired assets is still with the banks. The operational division line with the ‘main’ bank can be de ...
DOC - Europa.eu
... size (EUR 100 million) or a maximum weighted average life (no more than 5 years). A minimum issue size improves market liquidity and shorter maturities means they convert more quickly into cash. The LCR delegated act, unlike the Solvency II delegated act, recognises as liquid assets securitisations ...
... size (EUR 100 million) or a maximum weighted average life (no more than 5 years). A minimum issue size improves market liquidity and shorter maturities means they convert more quickly into cash. The LCR delegated act, unlike the Solvency II delegated act, recognises as liquid assets securitisations ...
Lessons from Its Recovery from the Bank-Sovereign Loop
... insolvency, while, at the same time, both the central bank and the banks worked through changes in their internal structures and staffing. Such changes included the banks establishing collection systems, which had not been needed before the crisis. In practice, not everything can be done at once, so ...
... insolvency, while, at the same time, both the central bank and the banks worked through changes in their internal structures and staffing. Such changes included the banks establishing collection systems, which had not been needed before the crisis. In practice, not everything can be done at once, so ...
China`s new monetary policy framework
... Since April 2014, we have been arguing that the PBOC needs to ease monetary policy, in the form of interest rate and RRR cuts, initially to compensate for the deleveraging effect from shadow-banking consolidation, and then to lower market interest rates and provide an accommodative credit environmen ...
... Since April 2014, we have been arguing that the PBOC needs to ease monetary policy, in the form of interest rate and RRR cuts, initially to compensate for the deleveraging effect from shadow-banking consolidation, and then to lower market interest rates and provide an accommodative credit environmen ...
Download attachment
... investment at fair value through income statement which is recognized at cost excluding transaction cost. All Financial receivables and loans and receivables are measured at amortized cost less impairment losses if any. Amortized cost is calculated on the effective profit / interest rate method. Tra ...
... investment at fair value through income statement which is recognized at cost excluding transaction cost. All Financial receivables and loans and receivables are measured at amortized cost less impairment losses if any. Amortized cost is calculated on the effective profit / interest rate method. Tra ...
The Fundamental Principles of Financial Regulation
... Each author has contributed on a personal basis, and no responsibility should be attached to any institution to which that author either is or has been attached. ...
... Each author has contributed on a personal basis, and no responsibility should be attached to any institution to which that author either is or has been attached. ...
a democratic reformation of finance
... big to fail’ operating in the UK in 2011/12 benefited from an implicit public subsidy worth an estimated £65 billion through artificially lowered operating costs, little lower than before the crash (IMF 2014a).3 Yet these banks poorly serve the real economy, with net lending to UK businesses falling ...
... big to fail’ operating in the UK in 2011/12 benefited from an implicit public subsidy worth an estimated £65 billion through artificially lowered operating costs, little lower than before the crash (IMF 2014a).3 Yet these banks poorly serve the real economy, with net lending to UK businesses falling ...
Central banks and financial crises
... institutionally. My thesis is that both monetary theory and the practice of central banking have failed to keep up with key developments in the financial systems of advanced market economies, and that as a result of this, many central banks were to varying degrees illprepared for the financial crisi ...
... institutionally. My thesis is that both monetary theory and the practice of central banking have failed to keep up with key developments in the financial systems of advanced market economies, and that as a result of this, many central banks were to varying degrees illprepared for the financial crisi ...
Assessing payments systems in Latin America
... precious objects gave way to paper money backed by gold at the beginning in the 17th century. Continued evolution during the 20th century ushered in the present system where paper currency and bank account deposits are money because they are backed by governments. In the context of this history, “pl ...
... precious objects gave way to paper money backed by gold at the beginning in the 17th century. Continued evolution during the 20th century ushered in the present system where paper currency and bank account deposits are money because they are backed by governments. In the context of this history, “pl ...
Switzerland - Swiss National Bank
... several countries. In Switzerland, the banking crisis of the 1990s followed a build-up phase during which credit growth was high by historical standards – in particular when compared to economic activity. This led to a significant and rapid increase of the ratio of mortgages to gross domestic produc ...
... several countries. In Switzerland, the banking crisis of the 1990s followed a build-up phase during which credit growth was high by historical standards – in particular when compared to economic activity. This led to a significant and rapid increase of the ratio of mortgages to gross domestic produc ...
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.