Investment in Relationship-Specific Assets: Does Finance Matter?∗
... The …nance literature traditionally focuses on the interactions between agents from the …nancial sector (e.g., banks) on the one side and …rms in the real economy on the other side. In this paper, we look at the role of banks in encouraging value-enhancing interactions between …rms in the real econ ...
... The …nance literature traditionally focuses on the interactions between agents from the …nancial sector (e.g., banks) on the one side and …rms in the real economy on the other side. In this paper, we look at the role of banks in encouraging value-enhancing interactions between …rms in the real econ ...
Tilburg University The impact of Taxation on Bank
... Avramova (2012) list several bank and country level factors that can potentially influence RWA density. Mariathasan and Merrouche (2013) provide evidence that banks regulated under Basel II took advantage of advanced methods to calculate regulatory capital, which allowed them to lower their capitali ...
... Avramova (2012) list several bank and country level factors that can potentially influence RWA density. Mariathasan and Merrouche (2013) provide evidence that banks regulated under Basel II took advantage of advanced methods to calculate regulatory capital, which allowed them to lower their capitali ...
1 Competition and Concentration in the New European Banking
... of the reorganization of the credit system has been a sharp growth in the number of concentration processes in EU countries with vast implications for competition and concentration in the banking and financial sector: the enhanced competition has forced banks to look for a bigger size (in order to e ...
... of the reorganization of the credit system has been a sharp growth in the number of concentration processes in EU countries with vast implications for competition and concentration in the banking and financial sector: the enhanced competition has forced banks to look for a bigger size (in order to e ...
Strategy and Tactics of Monetary Policy: Examples From Europe and
... support from studies of the correlations between central bank independence and both inflation (negative) and output (zero) (Alesina and Summers 1993; Cukierman 1992; see Posen 1993 for a critique). All this has spawned a large literature, with which it is assumed the reader is familiar, so this is n ...
... support from studies of the correlations between central bank independence and both inflation (negative) and output (zero) (Alesina and Summers 1993; Cukierman 1992; see Posen 1993 for a critique). All this has spawned a large literature, with which it is assumed the reader is familiar, so this is n ...
Determinants of Banking System Fragility: a regional perspective
... explaining regional banking system fragility next to the effects of regional macro factors. Among the banking system characteristics, higher liquidity reduces regional banking system fragility in all regions whereas higher capitalization reduces regional banking system fragility in all regions with ...
... explaining regional banking system fragility next to the effects of regional macro factors. Among the banking system characteristics, higher liquidity reduces regional banking system fragility in all regions whereas higher capitalization reduces regional banking system fragility in all regions with ...
Liquidity and Reserve Management: Strategies and Policies
... with school, holidays, and travel plans. Anticipating these longer-term liquidity needs managers can draw upon a wider array of funds sources than is true for immediate liquidity needs, such as selling off accumulated liquid assets, aggressively advertising the institution’s current menu of services ...
... with school, holidays, and travel plans. Anticipating these longer-term liquidity needs managers can draw upon a wider array of funds sources than is true for immediate liquidity needs, such as selling off accumulated liquid assets, aggressively advertising the institution’s current menu of services ...
Demand for and Adequacy of International Reserves
... central bank (or monetary authority) that can be converted, with certainty, into another financial medium and used to influence the value of the country’s exchange rate. International reserves (also called foreign exchange reserves) are generally defined in gross terms in the literature, to include ...
... central bank (or monetary authority) that can be converted, with certainty, into another financial medium and used to influence the value of the country’s exchange rate. International reserves (also called foreign exchange reserves) are generally defined in gross terms in the literature, to include ...
Internal Finance versus Bank Debt
... monitoring cost βI. Once the money has been invested in physical assets, the entrepreneur cannot divert it any more, in line with White’s (1984) suggestion that monitoring diversion is costlier for liquid assets than for physical assets. Thus, bank monitoring prevents the entrepreneur from taking th ...
... monitoring cost βI. Once the money has been invested in physical assets, the entrepreneur cannot divert it any more, in line with White’s (1984) suggestion that monitoring diversion is costlier for liquid assets than for physical assets. Thus, bank monitoring prevents the entrepreneur from taking th ...
Credit Risk Transfer Practices in US Commercial Banks
... Few empirical papers have attempted to verify the theoretical predictions of those models and to compare different CRT tools. Most studies consider CRT instruments taken individually and investigate the motivations behind the choice of a particular tool. Possible motivations for CRT instruments are ...
... Few empirical papers have attempted to verify the theoretical predictions of those models and to compare different CRT tools. Most studies consider CRT instruments taken individually and investigate the motivations behind the choice of a particular tool. Possible motivations for CRT instruments are ...
Cooperative Banks and Financial Stability
... particular, BankScope contains only a small number of cooperative banks in the United States). 5 However, the coverage of our paper is still higher than in most banking studies (and in particular studies that focus on banks with particular features, such as large banks or banks that are listed on st ...
... particular, BankScope contains only a small number of cooperative banks in the United States). 5 However, the coverage of our paper is still higher than in most banking studies (and in particular studies that focus on banks with particular features, such as large banks or banks that are listed on st ...
Balancing the Banks: Global Lessons from the Financial Crisis
... will behave erratically, but it further reduces depositors’ incentive to monitor banks. This rationale for prudential regulation—the lack of expertise and the wastefulness associated with monitoring of balance sheets by retail depositors—explains why prudential regulation is also observed for other ...
... will behave erratically, but it further reduces depositors’ incentive to monitor banks. This rationale for prudential regulation—the lack of expertise and the wastefulness associated with monitoring of balance sheets by retail depositors—explains why prudential regulation is also observed for other ...
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... Leasing decision, the court noted that in appropriate circumstances, a lease transaction may constitute a loan of money secured by the property leased. Id. at 1380. The court reasoned that because secured lending and personal property leasing are functionally interchangeable, personal property leasi ...
... Leasing decision, the court noted that in appropriate circumstances, a lease transaction may constitute a loan of money secured by the property leased. Id. at 1380. The court reasoned that because secured lending and personal property leasing are functionally interchangeable, personal property leasi ...
PAVING THE WAY FOR A SUSTAINABLE RECOVERY PositiveMoney
... In Part 1 we briefly outline the causes of the financial crisis. We highlight the role played by banks and private debt, and discuss why monetary policy was largely ineffective at increasing aggregate demand. We consider the prospects for a sustainable recovery, given current economic conditions and ...
... In Part 1 we briefly outline the causes of the financial crisis. We highlight the role played by banks and private debt, and discuss why monetary policy was largely ineffective at increasing aggregate demand. We consider the prospects for a sustainable recovery, given current economic conditions and ...
Maintaining financial system stability
... episodes of financial instability have highlighted a number of additional factors that have tended to contribute to financial instability. These include: ...
... episodes of financial instability have highlighted a number of additional factors that have tended to contribute to financial instability. These include: ...
Mankiw 5/e Chapter 4: Money and Inflation
... Fisher effect: nominal interest rate moves one-for-one w/ expected inflation. is the opp. cost of holding money 4. Money demand depends on income in the Quantity Theory more generally, it also depends on the nominal interest rate; if so, then changes in expected inflation affect the current ...
... Fisher effect: nominal interest rate moves one-for-one w/ expected inflation. is the opp. cost of holding money 4. Money demand depends on income in the Quantity Theory more generally, it also depends on the nominal interest rate; if so, then changes in expected inflation affect the current ...
determinants of universal bank lending rate in ghana
... The main purpose of statutory reserve requirements set by the Central Bank is to protect the depositor but this pool of resources allows for financial, fiscal deficit has resulted in financial tax obligation on universal banks. It develops a situation that can create high inflation and continues hig ...
... The main purpose of statutory reserve requirements set by the Central Bank is to protect the depositor but this pool of resources allows for financial, fiscal deficit has resulted in financial tax obligation on universal banks. It develops a situation that can create high inflation and continues hig ...
Non-interest income and total income stability
... and may well, as is certainly the case for trustee business, have been largely unaffected by the economic cycle. As fee-based activity of banks has increased, this conventional wisdom may no longer be justified. De Young and Roland (1999), in a paper correlating product mix with earnings volatility ...
... and may well, as is certainly the case for trustee business, have been largely unaffected by the economic cycle. As fee-based activity of banks has increased, this conventional wisdom may no longer be justified. De Young and Roland (1999), in a paper correlating product mix with earnings volatility ...
Folie 1 - Peter Knauer
... Our traditional money is not neutral on the market. It is priviliged by its added value which consists in its advantage of liquidity. If one lends money, one remains the owner, but renounces for a time its advantage of liquidity; this is paid for by the net interest given to the owner, although the ...
... Our traditional money is not neutral on the market. It is priviliged by its added value which consists in its advantage of liquidity. If one lends money, one remains the owner, but renounces for a time its advantage of liquidity; this is paid for by the net interest given to the owner, although the ...
FC Research SRI LANKA BANKING SECTOR HOLD
... 2006. At the same time, Sri Lanka’s per capita GDP has increased by over 2.75 times (2006 – USD 1,423 and 2015 USD 3,924). These trends suggest an inverse relationship between the two variables. Sri Lanka’s tax revenue to GDP ratio is an anomaly, both in comparison to other middle-income countries a ...
... 2006. At the same time, Sri Lanka’s per capita GDP has increased by over 2.75 times (2006 – USD 1,423 and 2015 USD 3,924). These trends suggest an inverse relationship between the two variables. Sri Lanka’s tax revenue to GDP ratio is an anomaly, both in comparison to other middle-income countries a ...
Understanding Systemic Risk: The Trade
... endogenous outcome of the interaction between market liquidity risk, solvency risk, and the structure of banks’ funding. Ahead of the crisis, the theoretical literature was almost silent on how to link funding liquidity and bank solvency risks, concentrating for the most part on one type of risk or ...
... endogenous outcome of the interaction between market liquidity risk, solvency risk, and the structure of banks’ funding. Ahead of the crisis, the theoretical literature was almost silent on how to link funding liquidity and bank solvency risks, concentrating for the most part on one type of risk or ...
Deregulation of Bank Entry and Bank Failures
... state deregulation. Our results suggest that at least using the bank failures till the period of enactment of the Regal-Neil Act of 1994, such moral hazard did not seem to affect banking sector fragility. These contrasting results are consistent with the effect of the regulation being greater in envi ...
... state deregulation. Our results suggest that at least using the bank failures till the period of enactment of the Regal-Neil Act of 1994, such moral hazard did not seem to affect banking sector fragility. These contrasting results are consistent with the effect of the regulation being greater in envi ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... money and of the case for a constant money growth rule. As a consequence she has devoted considerable attention in the past twenty years to the study of monetary policy in the U.S. and in other countries. As a charter member, with Karl Brunner, Allan Meltzer, and several others, of the Shadow Open M ...
... money and of the case for a constant money growth rule. As a consequence she has devoted considerable attention in the past twenty years to the study of monetary policy in the U.S. and in other countries. As a charter member, with Karl Brunner, Allan Meltzer, and several others, of the Shadow Open M ...
Money and Inflation Adapted for EC 204 by Prof. Bob Murphy
... (Chap. 3) In the long run, the real wage is determined by labor supply and the marginal product of labor, not the price level or inflation rate. ...
... (Chap. 3) In the long run, the real wage is determined by labor supply and the marginal product of labor, not the price level or inflation rate. ...
an econometric analysis of effect of changes in interest rates on
... governments normally use include monetary policy (i.e. increase or decrease in the money supply and interest rate), fiscal policy (changes in the amount of taxes and government spending) and various controls on prices, tariffs, etc. Many nations choose monetary policy as their primary tool since it ...
... governments normally use include monetary policy (i.e. increase or decrease in the money supply and interest rate), fiscal policy (changes in the amount of taxes and government spending) and various controls on prices, tariffs, etc. Many nations choose monetary policy as their primary tool since it ...
How do insured deposits affect bank stability
... Gorton and Pennacchi (1990) that study the function of financial institutions to create liquid assets for uninformed customers. In a recent paper, Morrison and White (2011) argue that socially too few deposits are made in equilibrium because of market failures, and they find in their set-up that dep ...
... Gorton and Pennacchi (1990) that study the function of financial institutions to create liquid assets for uninformed customers. In a recent paper, Morrison and White (2011) argue that socially too few deposits are made in equilibrium because of market failures, and they find in their set-up that dep ...
History of the Federal Reserve System
This article is about the history of the United States Federal Reserve System from its creation to the present.