Capital requirements under Basel III and their impact on the banking
... It is firstly important to stress that if the measurement of risk by the regulatory authority were perfect, an increase in the capital ratio would not, by definition, entail greater risk, since as soon as it was detected by the regulator it would result in a higher capital requirement. Indeed, it is ...
... It is firstly important to stress that if the measurement of risk by the regulatory authority were perfect, an increase in the capital ratio would not, by definition, entail greater risk, since as soon as it was detected by the regulator it would result in a higher capital requirement. Indeed, it is ...
International Financial Reporting Standards
... Possible obligation confirmed by occurrence or nonoccurrence of future event Present obligation not recognized because: No probable outflow of resources Amount cannot be measured reliably ...
... Possible obligation confirmed by occurrence or nonoccurrence of future event Present obligation not recognized because: No probable outflow of resources Amount cannot be measured reliably ...
Greek debt and German wages
... necessarily beneficial (see Stockhammer 2011a, 2011b as modern reformulations). The EU would thus be subject to prolonged unemployment. Second, the EU policy system would create a deflationary bias. In the case of divergences within the EU, with some countries running trade deficits and others runni ...
... necessarily beneficial (see Stockhammer 2011a, 2011b as modern reformulations). The EU would thus be subject to prolonged unemployment. Second, the EU policy system would create a deflationary bias. In the case of divergences within the EU, with some countries running trade deficits and others runni ...
Commissioner Statements_ 9-17
... reasonable rules designed to protect the public interest. For many years, this country was prosperous, and its markets grew and thrived. Powerful financial interests, including many of our largest banks and investment banks, argued that regulation was no longer needed, that markets were inherently s ...
... reasonable rules designed to protect the public interest. For many years, this country was prosperous, and its markets grew and thrived. Powerful financial interests, including many of our largest banks and investment banks, argued that regulation was no longer needed, that markets were inherently s ...
The Washington Consensus as Policy Prescription for Development
... of developing countries. The waste of resources that are underemployed during recessions continues to be massive. But the potential benefit of keeping economies operating close to capacity is not simply the difference between an exogenous level of full capacity output and the actual path of output, ...
... of developing countries. The waste of resources that are underemployed during recessions continues to be massive. But the potential benefit of keeping economies operating close to capacity is not simply the difference between an exogenous level of full capacity output and the actual path of output, ...
The causes of the Great Recession:
... incrementally’. But using only 2 to 3 decades of data did not yield a model that could anticipate crisis if risk moved outside that range. There was nothing wrong with the Black and Scholes option pricing model: “it’s no less valid today than a decade ago”. It is just that the “underlying siz ...
... incrementally’. But using only 2 to 3 decades of data did not yield a model that could anticipate crisis if risk moved outside that range. There was nothing wrong with the Black and Scholes option pricing model: “it’s no less valid today than a decade ago”. It is just that the “underlying siz ...
Democratic Commissioners’ Views Is America’s trade deficit sustainable? The
... In the context of the economics of a country’s external balance, "sustainable" refers to a stable state or a stable path where the external balance generates no economic forces of its own to change its trajectory.3 In other words, a sustainable current account deficit is one that does not result in ...
... In the context of the economics of a country’s external balance, "sustainable" refers to a stable state or a stable path where the external balance generates no economic forces of its own to change its trajectory.3 In other words, a sustainable current account deficit is one that does not result in ...
Economic environment - World Trade Organization
... Box I.1: The State Petroleum Fund and the Environmental Fund The Parliament adopted the Act relating to the State Petroleum Fund in 1990. The Ministry of Finance is responsible for defining the strategy of the Fund, but has delegated the task of its operational management to the Central Bank. Accord ...
... Box I.1: The State Petroleum Fund and the Environmental Fund The Parliament adopted the Act relating to the State Petroleum Fund in 1990. The Ministry of Finance is responsible for defining the strategy of the Fund, but has delegated the task of its operational management to the Central Bank. Accord ...
Contents, Explanatory notes, Abbreviations and Overview
... References................................................................................................................................................. 201 Annex to chapter VI Growth and Structural Change: An Updated Assessment of the Role of the Real Exchange Rate .............................. ...
... References................................................................................................................................................. 201 Annex to chapter VI Growth and Structural Change: An Updated Assessment of the Role of the Real Exchange Rate .............................. ...
1990s - Bank i Kredyt
... much less limited: they could extend both short- and long-term credits, take payments and deposits and handle foreign exchange operations. Second, their customers did not need to come from a specific economic sector. These banks enjoyed the freedom of servicing both population and enterprises in any ...
... much less limited: they could extend both short- and long-term credits, take payments and deposits and handle foreign exchange operations. Second, their customers did not need to come from a specific economic sector. These banks enjoyed the freedom of servicing both population and enterprises in any ...
The Dazzling Dollar (Brookings Papers on Economic Activity, 1985
... bubble, the dollar-markexchange rate in fundamentalequilibrium,S,, lies about64 percentbelow its actualvalue.5Onthis assumption,we can estimate P, as a functionof a,. Almost all the models of stochasticbubbleshave assumeda constant probabilityof collapse P,. But empiricallywe can construct a differe ...
... bubble, the dollar-markexchange rate in fundamentalequilibrium,S,, lies about64 percentbelow its actualvalue.5Onthis assumption,we can estimate P, as a functionof a,. Almost all the models of stochasticbubbleshave assumeda constant probabilityof collapse P,. But empiricallywe can construct a differe ...
Working Paper
... suggestions. Dellas would also like to thank the Hong Kong Institute of Monetary Research for its hospitality. The views expressed are the authors’ own and should not be interpreted as those of their respective institutions. ...
... suggestions. Dellas would also like to thank the Hong Kong Institute of Monetary Research for its hospitality. The views expressed are the authors’ own and should not be interpreted as those of their respective institutions. ...
A CREDIT AND BANKING MODEL FOR EMERGING PHILIPPINES
... and lending) rates as observed in the Philippines. Second, surges in portfolio flows and liquidity can affect the networth or leverage of firms that determine the “external” finance premium and demand side “financial accelerator” effects. Moreover, considering that corporates in emerging market econ ...
... and lending) rates as observed in the Philippines. Second, surges in portfolio flows and liquidity can affect the networth or leverage of firms that determine the “external” finance premium and demand side “financial accelerator” effects. Moreover, considering that corporates in emerging market econ ...
Since 2002, the U.S. has seen the emergence of
... relative price changes would depress sales of domestic goods and stimulate sales of imported goods, thereby leading to a deterioration in the trade balance. In reality, however, a considerable share of international trade in goods and services between the United States and the rest of the world tend ...
... relative price changes would depress sales of domestic goods and stimulate sales of imported goods, thereby leading to a deterioration in the trade balance. In reality, however, a considerable share of international trade in goods and services between the United States and the rest of the world tend ...
Why Study Money, Banking, and Financial Markets?
... such as bond, stock and foreign exchange markets work • To examine how financial institutions such as banks and insurance companies work • To examine the role of money in the economy Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
... such as bond, stock and foreign exchange markets work • To examine how financial institutions such as banks and insurance companies work • To examine the role of money in the economy Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
MishkinCh01
... such as bond, stock and foreign exchange markets work • To examine how financial institutions such as banks and insurance companies work • To examine the role of money in the economy Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
... such as bond, stock and foreign exchange markets work • To examine how financial institutions such as banks and insurance companies work • To examine the role of money in the economy Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
Trade, financial and growth nexus in Pakistan
... restricted trade and financial policies. An increasing openness is expected to have positive impacts on economic growth (Jin, 2000; Fry, 1995, 1997; Darrat, 1999; Levine, 1997; Mckinnon, 1973; Shaw, 1973 and World Bank, 1989). There is growing consensus that both liberalization policies are expected ...
... restricted trade and financial policies. An increasing openness is expected to have positive impacts on economic growth (Jin, 2000; Fry, 1995, 1997; Darrat, 1999; Levine, 1997; Mckinnon, 1973; Shaw, 1973 and World Bank, 1989). There is growing consensus that both liberalization policies are expected ...
mmi07 Steger final 4388002 en
... on trade openness and growth – in which trade openness is typically measured by the value of traded goods and services over GDP – financial openness has been measured quantitatively. Kraay (1998) and Edison et al. (2004) looked at various measures of gross capital flows and stocks over GDP as quanti ...
... on trade openness and growth – in which trade openness is typically measured by the value of traded goods and services over GDP – financial openness has been measured quantitatively. Kraay (1998) and Edison et al. (2004) looked at various measures of gross capital flows and stocks over GDP as quanti ...
The Social Cost of Foreign Exchange Reserves
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
Chapter 31 - Developing Financial Policies
... school board can spend time on other financial issues. These policies also allow the LUA's administration to move ahead with financial matters, as they follow the adopted financial policies, rather than wait for decisions from the school board. ...
... school board can spend time on other financial issues. These policies also allow the LUA's administration to move ahead with financial matters, as they follow the adopted financial policies, rather than wait for decisions from the school board. ...
The Euro Debt Crisis and Germany`s Euro Trilemma
... foreign lands, namely by tolerating a huge short dollar position that even the ECB, as their home lender of last resort, would be unable to look after (at least without the cooperation of the US Federal Reserve, met through currency swap arrangements between the central banks in due course—see Baba, ...
... foreign lands, namely by tolerating a huge short dollar position that even the ECB, as their home lender of last resort, would be unable to look after (at least without the cooperation of the US Federal Reserve, met through currency swap arrangements between the central banks in due course—see Baba, ...
financial repression in the 21st century
... This possible trade-off between keeping the debt sustainable and stimulating growth raises the question of optimal financial repression design and factors influencing on it in situation when the government strives two aims simultaneously. Optimal design of financial repression in our model means th ...
... This possible trade-off between keeping the debt sustainable and stimulating growth raises the question of optimal financial repression design and factors influencing on it in situation when the government strives two aims simultaneously. Optimal design of financial repression in our model means th ...
Monetary Policy after the Crisis introduction Marvin Goodfriend COmmenTaRy
... Conclusion 6: “Financial stability as an objective of monetary policy makes little sense, whereas financial stability, as an objective for the central bank, makes sense if the central bank gets control over financial stability instruments.” I agree with qualification. Financial stability policy that ...
... Conclusion 6: “Financial stability as an objective of monetary policy makes little sense, whereas financial stability, as an objective for the central bank, makes sense if the central bank gets control over financial stability instruments.” I agree with qualification. Financial stability policy that ...
Global financial system
The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization, its evolution is marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. In the late 1800s, world migration and communication technology facilitated unprecedented growth in international trade and investment. At the onset of World War I, trade contracted as foreign exchange markets became paralyzed by money market illiquidity. Countries sought to defend against external shocks with protectionist policies and trade virtually halted by 1933, worsening the effects of the global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs worldwide. Efforts to revamp the international monetary system after World War II improved exchange rate stability, fostering record growth in global finance.A series of currency devaluations and oil crises in the 1970s led most countries to float their currencies. The world economy became increasingly financially integrated in the 1980s and 1990s due to capital account liberalization and financial deregulation. A series of financial crises in Europe, Asia, and Latin America followed with contagious effects due to greater exposure to volatile capital flows. The global financial crisis, which originated in the United States in 2007, quickly propagated among other nations and is recognized as the catalyst for the worldwide Great Recession. A market adjustment to Greece's noncompliance with its monetary union in 2009 ignited a sovereign debt crisis among European nations known as the Eurozone crisis.A country's decision to operate an open economy and globalize its financial capital carries monetary implications captured by the balance of payments. It also renders exposure to risks in international finance, such as political deterioration, regulatory changes, foreign exchange controls, and legal uncertainties for property rights and investments. Both individuals and groups may participate in the global financial system. Consumers and international businesses undertake consumption, production, and investment. Governments and intergovernmental bodies act as purveyors of international trade, economic development, and crisis management. Regulatory bodies establish financial regulations and legal procedures, while independent bodies facilitate industry supervision. Research institutes and other associations analyze data, publish reports and policy briefs, and host public discourse on global financial affairs.While the global financial system is edging toward greater stability, governments must deal with differing regional or national needs. Some nations are trying to orderly discontinue unconventional monetary policies installed to cultivate recovery, while others are expanding their scope and scale. Emerging market policymakers face a challenge of precision as they must carefully institute sustainable macroeconomic policies during extraordinary market sensitivity without provoking investors to retreat their capital to stronger markets. Nations' inability to align interests and achieve international consensus on matters such as banking regulation has perpetuated the risk of future global financial catastrophes.