The future of the international monetary and financial
... that is rarely mentioned. Large LOLR loans are almost certain to become highly political events – they will surely be called “bank bailouts”. Yet in all countries that have independent central banks, this function is placed squarely in the hands of non-political, unelected technocrats, that is, peop ...
... that is rarely mentioned. Large LOLR loans are almost certain to become highly political events – they will surely be called “bank bailouts”. Yet in all countries that have independent central banks, this function is placed squarely in the hands of non-political, unelected technocrats, that is, peop ...
Efficiency Determinants and Dynamic Efficiency Changes in Latin
... than domestic banks. Portela and Thanassoulis (2006) used a nonoriented DEA decomposition measure to study the efficiency change, technology change, and residual measures in a sample of Portuguese banks. The authors argued that use of distance functions as a means to calculate total factor productiv ...
... than domestic banks. Portela and Thanassoulis (2006) used a nonoriented DEA decomposition measure to study the efficiency change, technology change, and residual measures in a sample of Portuguese banks. The authors argued that use of distance functions as a means to calculate total factor productiv ...
The “Mystery of the Printing Press” Monetary Policy and Self
... to match the full scale of the government …nancing, nor have to guarantee the government in all circumstances, at the cost of high in‡ation. The gist of our argument is most easily understood referring to a situation in which the relevant (risk-free) nominal interest rate is at its lower bound. In t ...
... to match the full scale of the government …nancing, nor have to guarantee the government in all circumstances, at the cost of high in‡ation. The gist of our argument is most easily understood referring to a situation in which the relevant (risk-free) nominal interest rate is at its lower bound. In t ...
excessive leverage and bankers` pay
... bank capital structure, rather than share capital increases, is the cheapest and fastest way to build size – both in a relationship banking but, even more so, in a transactional banking environment.12 On the other hand, increased bank size and complexity present an ideal environment for hiding exces ...
... bank capital structure, rather than share capital increases, is the cheapest and fastest way to build size – both in a relationship banking but, even more so, in a transactional banking environment.12 On the other hand, increased bank size and complexity present an ideal environment for hiding exces ...
chapter 10
... D) any good that cannot be consumed but is used for the production of other goods. Answer: A Difficulty: Easy AACSB: Analytical Thinking Topic: Borrowers and the Demand for Loans 3) Which of the following statements is true? A) Money that is lent out is considered to be a liability. B) People who le ...
... D) any good that cannot be consumed but is used for the production of other goods. Answer: A Difficulty: Easy AACSB: Analytical Thinking Topic: Borrowers and the Demand for Loans 3) Which of the following statements is true? A) Money that is lent out is considered to be a liability. B) People who le ...
Community Currency Systems
... Governments decided to regulate the creation of money and the first Central Banks appeared. Governments, however, continued (and continue) the same abuses as they supposedly were to halt by centralizing the money creation. Nowadays governments create money either directly by simply printing money, o ...
... Governments decided to regulate the creation of money and the first Central Banks appeared. Governments, however, continued (and continue) the same abuses as they supposedly were to halt by centralizing the money creation. Nowadays governments create money either directly by simply printing money, o ...
Some Theoretical Considerations Regarding Net Asset Values for
... paper from money market funds (see Duygan-Bump et al. [2013]). Money market funds (or, money funds, for short) are open-end mutual funds that invest in short-term high-credit-quality debt instruments such as commercial paper, large certi…cates of deposit, Treasury bonds, and repurchase agreements. M ...
... paper from money market funds (see Duygan-Bump et al. [2013]). Money market funds (or, money funds, for short) are open-end mutual funds that invest in short-term high-credit-quality debt instruments such as commercial paper, large certi…cates of deposit, Treasury bonds, and repurchase agreements. M ...
Inflation Targeting, Reserves Accumulation, and Exchange Rate
... However, actual IT regimes in Latin America appear to be rather different from their theoretical counterparts, most markedly on the extent to which central banks have engaged on foreign exchange intervention and, more recently, accumulated foreign exchange reserves. Conventional theory prescribes th ...
... However, actual IT regimes in Latin America appear to be rather different from their theoretical counterparts, most markedly on the extent to which central banks have engaged on foreign exchange intervention and, more recently, accumulated foreign exchange reserves. Conventional theory prescribes th ...
a 125-page addendum
... inefficiencies. The emergence of larger conglomerates might be consistent with overall performance objectives as long as the funds invested by incumbents, e.g. in flight reservation or electronic banking systems, are recoverable. Potential competitors would then not be unduly deterred by high entry ...
... inefficiencies. The emergence of larger conglomerates might be consistent with overall performance objectives as long as the funds invested by incumbents, e.g. in flight reservation or electronic banking systems, are recoverable. Potential competitors would then not be unduly deterred by high entry ...
capital requirements and bank behaviour: the impact of
... increasing sophistication of the banks and the development of new innovative techniques in the market, the largest banks have started to find ways of avoiding the limitation which fixed capital requirements place on their risk-taking relative to their capital. For certain banks, this is undoubtedly ...
... increasing sophistication of the banks and the development of new innovative techniques in the market, the largest banks have started to find ways of avoiding the limitation which fixed capital requirements place on their risk-taking relative to their capital. For certain banks, this is undoubtedly ...
The Anatomy of a Credit Crisis: The Boom and Bust in Farm Land
... the United States in the early twentieth century, especially the markets for farm loans, were localized. Indeed, even in the late 20th century, Petersen and Rajan (2002) find that physical proximity was important in determining credit access for small potential borrowers. We therefore focus on loca ...
... the United States in the early twentieth century, especially the markets for farm loans, were localized. Indeed, even in the late 20th century, Petersen and Rajan (2002) find that physical proximity was important in determining credit access for small potential borrowers. We therefore focus on loca ...
The framework of capital requirements for UK banks
... Banks need to be able to absorb losses. The capacity to absorb losses ensures that, even after a shock, banks are able to meet their own liabilities as they fall due and continue their business. The failure or near-failure (‘distress’) of a bank, or banks, can have consequences well beyond those for ...
... Banks need to be able to absorb losses. The capacity to absorb losses ensures that, even after a shock, banks are able to meet their own liabilities as they fall due and continue their business. The failure or near-failure (‘distress’) of a bank, or banks, can have consequences well beyond those for ...
Volume 71 No. 3, September 2008 Contents Themed issue: Inflation
... Zealand’s flexible inflation-targeting framework serves the economy well, but one should not to ask too much of it. Inflation targeting is the best approach New Zealand and many other similar countries have yet found for monetary policy, among a limited number of viable alternatives. The fact remain ...
... Zealand’s flexible inflation-targeting framework serves the economy well, but one should not to ask too much of it. Inflation targeting is the best approach New Zealand and many other similar countries have yet found for monetary policy, among a limited number of viable alternatives. The fact remain ...
Report of the High-level Expert Group on reforming the structure of
... Requirement Regulation and Directive (CRR/CRDIV) will constitute a major improvement in all these respects. Connected to its mandate, the Group also expects the on-going fundamental review of the trading book by the Basel Committee to improve the control of market risk within the banking system. The ...
... Requirement Regulation and Directive (CRR/CRDIV) will constitute a major improvement in all these respects. Connected to its mandate, the Group also expects the on-going fundamental review of the trading book by the Basel Committee to improve the control of market risk within the banking system. The ...
EIB - EESC European Economic and Social Committee
... .. Involvement of the EIB or / and of national promotional banks or agencies from member states. .. Involvement of the EIB could be in a substantial part of the monetary expansion or in a limited amount. ...
... .. Involvement of the EIB or / and of national promotional banks or agencies from member states. .. Involvement of the EIB could be in a substantial part of the monetary expansion or in a limited amount. ...
The Federal Prudent Man Rule under ERISA
... ERISA's fiduciary rules ranged from fears that they would destroy the sound operation and management of private benefit plans to statements that the basic rules for fiduciary conduct had not changed from preexisting common law standards.' Approximately one-half of the private work force in this coun ...
... ERISA's fiduciary rules ranged from fears that they would destroy the sound operation and management of private benefit plans to statements that the basic rules for fiduciary conduct had not changed from preexisting common law standards.' Approximately one-half of the private work force in this coun ...
Self-Fulfilling Credit Market Freezes
... policy problem we consider here is fundamentally different. In these papers, the analysis revolves around capital infusion to an institution that might be subject to a run because it lacks capital. In our model, on the other hand, coordination failures arise among financial institutions in their dec ...
... policy problem we consider here is fundamentally different. In these papers, the analysis revolves around capital infusion to an institution that might be subject to a run because it lacks capital. In our model, on the other hand, coordination failures arise among financial institutions in their dec ...
NBER WORKING PAPER SERIES SELF-FULFILLING CREDIT MARKET FREEZES Lucian A. Bebchuk Itay Goldstein
... policy problem we consider here is fundamentally different. In these papers, the analysis revolves around capital infusion to an institution that might be subject to a run because it lacks capital. In our model, on the other hand, coordination failures arise among financial institutions in their dec ...
... policy problem we consider here is fundamentally different. In these papers, the analysis revolves around capital infusion to an institution that might be subject to a run because it lacks capital. In our model, on the other hand, coordination failures arise among financial institutions in their dec ...
Financial Stability Oversight Council: A Framework to Mitigate
... Finance Agency, or FHFA). As then-Federal Reserve Governor Donald Kohn evaluated lessons from the financial crisis, “We [the Fed] traditionally have provided backup liquidity to sound depository institutions. But in the crisis, to support financial markets, we had to provide liquidity to non-bank fi ...
... Finance Agency, or FHFA). As then-Federal Reserve Governor Donald Kohn evaluated lessons from the financial crisis, “We [the Fed] traditionally have provided backup liquidity to sound depository institutions. But in the crisis, to support financial markets, we had to provide liquidity to non-bank fi ...
Success of the 2014-2016 Business Development Plan
... The figures included in this presentation are unaudited. This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements regarding ...
... The figures included in this presentation are unaudited. This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements regarding ...
Liquidity provision, banking, and the allocation of interest rate risk*
... Basle Committee makes a distinction between market risks and credit risks, proposing to treat them independently and subsuming interest rate risk under market risks. The distinction between market risks and credit risks reflects the traditional separation of credit departments and market investment ...
... Basle Committee makes a distinction between market risks and credit risks, proposing to treat them independently and subsuming interest rate risk under market risks. The distinction between market risks and credit risks reflects the traditional separation of credit departments and market investment ...
Banking structures report, October 2014
... This report reviews the main structural developments in the euro area banking sector in the period from 2008 to 20131 on the basis of a range of selected indicators. This time period includes the beginning of the financial crisis and the time when some euro area countries entered financial assistanc ...
... This report reviews the main structural developments in the euro area banking sector in the period from 2008 to 20131 on the basis of a range of selected indicators. This time period includes the beginning of the financial crisis and the time when some euro area countries entered financial assistanc ...
International Capital Flows and U.S. Interest Rates Francis E. Warnock
... a risk premium—that normally provide a reasonable accounting of Treasury yields. As Figure 2 shows, recently these macroeconomic variables have not fared as well for longterm interest rates, as 10-year Treasury yields are substantially lower than can be explained by macroeconomic conditions. We add ...
... a risk premium—that normally provide a reasonable accounting of Treasury yields. As Figure 2 shows, recently these macroeconomic variables have not fared as well for longterm interest rates, as 10-year Treasury yields are substantially lower than can be explained by macroeconomic conditions. We add ...
NBER WORKING PAPER SERIES OPTIMAL RESERVE MANAGEMENT AND SOVEREIGN DEBT Laura Alfaro
... this case, if reserves reduce output costs, they reduce sustainability. For this reason, we obtain once again that it is optimal not to hold reserves. The main implication that emerges from our work is that greater attention should be given to the explicit modeling of the sovereign’s motivations, in ...
... this case, if reserves reduce output costs, they reduce sustainability. For this reason, we obtain once again that it is optimal not to hold reserves. The main implication that emerges from our work is that greater attention should be given to the explicit modeling of the sovereign’s motivations, in ...
CURRENCY IMPACT IN BRAZILIAN PE/VC DEALS
... PE/VC investments in our sample outperformed on average Ibovespa and CDI (proxy for Brazilian risk free rate). We obtained an average a net PME for Ibovespa of 1.3 and for CDI of 1.2, where CDI is the Brazilian interbank interest rate, usually used as a proxy for risk free rate. In Exhibit 7 we obse ...
... PE/VC investments in our sample outperformed on average Ibovespa and CDI (proxy for Brazilian risk free rate). We obtained an average a net PME for Ibovespa of 1.3 and for CDI of 1.2, where CDI is the Brazilian interbank interest rate, usually used as a proxy for risk free rate. In Exhibit 7 we obse ...
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.