The Political Economy of Shadow Banking: Debt
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
To the problem of turbulence in quantitative easing
... monetary policy by choosing a target short-term policy interest rate. The Federal Open Market Committee (FOMC) of the Federal Reserve System targets the federal funds rate, the rate at which private deposit-taking institutions lend balances at the Federal Reserve overnight to each other. The Federal ...
... monetary policy by choosing a target short-term policy interest rate. The Federal Open Market Committee (FOMC) of the Federal Reserve System targets the federal funds rate, the rate at which private deposit-taking institutions lend balances at the Federal Reserve overnight to each other. The Federal ...
Economics and Moral Sentiments: The Case of Moral Hazard
... the view that competitive financial markets would produce a socially-optimal outcome. For individual firms and households, the financial sector and the related property sector with their rising asset prices held out the prospect of gains which discouraged any probing. But the crisis changed all that ...
... the view that competitive financial markets would produce a socially-optimal outcome. For individual firms and households, the financial sector and the related property sector with their rising asset prices held out the prospect of gains which discouraged any probing. But the crisis changed all that ...
Practice Problems Ch. 10 Loanable Funds Mkt
... 15. Using the market for loanable funds, which of the following has the potential to raise the real interest rate? A) an increase in the demand for loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the supply of loanable funds D) an increase in the quantity o ...
... 15. Using the market for loanable funds, which of the following has the potential to raise the real interest rate? A) an increase in the demand for loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the supply of loanable funds D) an increase in the quantity o ...
annualreport 2 0 0 8
... the Central Bank of Venezuela (BCV). Although positive, these results imply a slowdown over 2007, when the year-on-year variance was 8.4%. The product rate of growth slowdown would be related to the rate of increase of the aggregate demand, which has been the main economy's driving force since 2004. ...
... the Central Bank of Venezuela (BCV). Although positive, these results imply a slowdown over 2007, when the year-on-year variance was 8.4%. The product rate of growth slowdown would be related to the rate of increase of the aggregate demand, which has been the main economy's driving force since 2004. ...
Securities Markets
... growth of “net” or “one-way” turnover on the Indian equity market. From 2003 onwards, derivatives turnover has exceeded spot market turnover, as is the case with all successful derivatives markets in the world. This underlines the importance of the derivatives market, which now dominates price disco ...
... growth of “net” or “one-way” turnover on the Indian equity market. From 2003 onwards, derivatives turnover has exceeded spot market turnover, as is the case with all successful derivatives markets in the world. This underlines the importance of the derivatives market, which now dominates price disco ...
CFI-Letterhead Template
... (ROA) is therefore 6%. Is the return adequate or not? Here is how people tend to answer this question: 1. Business is operating at above breakeven so return is adequate. 2. The return is greater than what can be earned at a CD at the bank, making it a good investment. 3. Making or losing money doesn ...
... (ROA) is therefore 6%. Is the return adequate or not? Here is how people tend to answer this question: 1. Business is operating at above breakeven so return is adequate. 2. The return is greater than what can be earned at a CD at the bank, making it a good investment. 3. Making or losing money doesn ...
Active vs. Passive Management in 12 Points
... price volatility. Bond investments may be worth more or less than the original cost when redeemed. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in deriv ...
... price volatility. Bond investments may be worth more or less than the original cost when redeemed. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in deriv ...
The Business of Banking and the Economic Environment (Chapter 1)
... Bills: these are promises to pay money on a stated date – usually three months after the date of issue. Once one of these bills is purchased by a bank, it becomes a short term loan from the purchasing bank to its customer. These bills are negotiable, which means that they can be bought and sold on t ...
... Bills: these are promises to pay money on a stated date – usually three months after the date of issue. Once one of these bills is purchased by a bank, it becomes a short term loan from the purchasing bank to its customer. These bills are negotiable, which means that they can be bought and sold on t ...
A Closer Look at Money Market Funds: Bank CD Alternatives
... Treasury bills returned on average 3.7% annually compared with a 3.1% yearly U.S. inflation rate over the 1926-1996 period. In addition, fund expenses take a bite out of your returns. Thus, if a money fund is held in a taxable account, your aftertax return could easily be below the rate of inflation ...
... Treasury bills returned on average 3.7% annually compared with a 3.1% yearly U.S. inflation rate over the 1926-1996 period. In addition, fund expenses take a bite out of your returns. Thus, if a money fund is held in a taxable account, your aftertax return could easily be below the rate of inflation ...
bank opacity and information asymmetry around quarterly earnings
... value of the firm.8 However, based on agency theory related to adverse selection and moral hazard, bank managers are thought to encourage opacity because it assists them to hoard information about shifts in the bank’s income sources and risk-taking9 – the incentives for bank managers to take undue r ...
... value of the firm.8 However, based on agency theory related to adverse selection and moral hazard, bank managers are thought to encourage opacity because it assists them to hoard information about shifts in the bank’s income sources and risk-taking9 – the incentives for bank managers to take undue r ...
How Does Market Volatility Impact Risk Measures?
... The aim of the SRRI, to provide investors with a standardised measure of risk, is a noble ambition but are there improvements to be had? In this, the first of a series of articles from Morningstar Director of Quantitative Research Dr Paul Kaplan the author discusses the options for creating a univer ...
... The aim of the SRRI, to provide investors with a standardised measure of risk, is a noble ambition but are there improvements to be had? In this, the first of a series of articles from Morningstar Director of Quantitative Research Dr Paul Kaplan the author discusses the options for creating a univer ...
Ownership structure, risk and performance in the - Hal-SHS
... briefly review previous works on relative performances concerning (i) GOBs, (ii) MBs, and (iii) concentrated banks. As far as the relative performance of GOBs is concerned, Altunbas et al. (2001), focusing on the German banking industry, find little evidence to suggest that POBs are more efficient t ...
... briefly review previous works on relative performances concerning (i) GOBs, (ii) MBs, and (iii) concentrated banks. As far as the relative performance of GOBs is concerned, Altunbas et al. (2001), focusing on the German banking industry, find little evidence to suggest that POBs are more efficient t ...
TIPS ETF Driven Higher By Inflation Worries
... The Federal Reserve is pumping more money into the financial system with rate cuts and by taking agencybacked securities. As long as the system is in gridlock, TIPS will likely stay high. "The Fed has to do a lot of easing to catch up to the market, and these products are going to benefit," Spa ...
... The Federal Reserve is pumping more money into the financial system with rate cuts and by taking agencybacked securities. As long as the system is in gridlock, TIPS will likely stay high. "The Fed has to do a lot of easing to catch up to the market, and these products are going to benefit," Spa ...
Desafios para a Política Monetária: O Brasil e o Contexto Internacional
... waited and will not wait for other central banks to act in order to start fighting domestic inflationary pressures. Not acting promptly would enable initial specific price pressures to contaminate inflation dynamics permanently, due to deteriorated inflation expectations of both price and wage sette ...
... waited and will not wait for other central banks to act in order to start fighting domestic inflationary pressures. Not acting promptly would enable initial specific price pressures to contaminate inflation dynamics permanently, due to deteriorated inflation expectations of both price and wage sette ...
Financial Flexibility and the Cost of External Finance for U.S. Bank
... Our main tests focus on the link between our proxy for access costs (financial flexibility) and firm value. Unfortunately, this test does not allow us to determine whether flexibility is valuable because of flexible banks’ ability to arbitrage differential prices of claims in two markets, or because ...
... Our main tests focus on the link between our proxy for access costs (financial flexibility) and firm value. Unfortunately, this test does not allow us to determine whether flexibility is valuable because of flexible banks’ ability to arbitrage differential prices of claims in two markets, or because ...
E(R i ) - Cengage
... risky portfolios, one portfolio will emerge that maximizes the return investors can expect for a given standard deviation. To determine the composition of the optimal portfolio, you need to know the expected return and standard deviation for every risky asset, as well as the covariance between ever ...
... risky portfolios, one portfolio will emerge that maximizes the return investors can expect for a given standard deviation. To determine the composition of the optimal portfolio, you need to know the expected return and standard deviation for every risky asset, as well as the covariance between ever ...
The relationship between monetary and financial stability Leni Hunter
... shown as not necessarily involving financial stability concerns, just as many aspects of financial stability are shown as not affecting the maintenance of price stability.7 Prudential policy is shown as a subset of financial stability with some, but not most, matters in common with monetary policy. ...
... shown as not necessarily involving financial stability concerns, just as many aspects of financial stability are shown as not affecting the maintenance of price stability.7 Prudential policy is shown as a subset of financial stability with some, but not most, matters in common with monetary policy. ...
Returns, Absolute Returns and Risk
... pursuant to an algorithm. But in the crash of October 1987, investors found themselves unable to make those sales, and the ineffectiveness of the “insurance” (combined with the outsized positions it had encouraged) cost them dearly. And at any rate, portfolio insurance, like any mechanical risk-limi ...
... pursuant to an algorithm. But in the crash of October 1987, investors found themselves unable to make those sales, and the ineffectiveness of the “insurance” (combined with the outsized positions it had encouraged) cost them dearly. And at any rate, portfolio insurance, like any mechanical risk-limi ...
Market Discipline of Banks - Federal Reserve Bank of New York
... The points above are standard in this literature. Billet et al. (1998) recently make a novel argument: they suggest that deposit insurance may weaken discipline through a cost of funds effect. If bondholders try to raise spreads in response to increased risk, banks can soften the blow by substituti ...
... The points above are standard in this literature. Billet et al. (1998) recently make a novel argument: they suggest that deposit insurance may weaken discipline through a cost of funds effect. If bondholders try to raise spreads in response to increased risk, banks can soften the blow by substituti ...
China`s new monetary policy framework
... The framework for monetary policy includes a wide range of topics in policy making and execution, such as manipulation of various policy tools; operational targets, intermediate targets and ultimate targets; institutional arrangements between the central bank and the government; and monetary and fis ...
... The framework for monetary policy includes a wide range of topics in policy making and execution, such as manipulation of various policy tools; operational targets, intermediate targets and ultimate targets; institutional arrangements between the central bank and the government; and monetary and fis ...
Bank Bailouts and Moral Hazard?
... institutions throughout the world. Meanwhile, the insured deposit level of the U.S. commercial banks is constantly decreasing over the last decade. The model in this paper is more pertinent to capture these two features of the recent crisis. Some use the reduced-form approach, which requires data o ...
... institutions throughout the world. Meanwhile, the insured deposit level of the U.S. commercial banks is constantly decreasing over the last decade. The model in this paper is more pertinent to capture these two features of the recent crisis. Some use the reduced-form approach, which requires data o ...
Private Information
... Faced with moral hazard and adverse selection, banks use signals to discriminate between borrowers and ration or limit loans to amounts below that demanded. To restrict the amounts they are willing to lend to borrowers, banks use signals such as length of time in a job, ownership of a home, marital ...
... Faced with moral hazard and adverse selection, banks use signals to discriminate between borrowers and ration or limit loans to amounts below that demanded. To restrict the amounts they are willing to lend to borrowers, banks use signals such as length of time in a job, ownership of a home, marital ...
Uncertainty and Risk
... Faced with moral hazard and adverse selection, banks use signals to discriminate between borrowers and ration or limit loans to amounts below that demanded. To restrict the amounts they are willing to lend to borrowers, banks use signals such as length of time in a job, ownership of a home, marital ...
... Faced with moral hazard and adverse selection, banks use signals to discriminate between borrowers and ration or limit loans to amounts below that demanded. To restrict the amounts they are willing to lend to borrowers, banks use signals such as length of time in a job, ownership of a home, marital ...