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Macroprudential policy and systemic risk
Macroprudential policy and systemic risk

... cycle by raising the cost of credit, and therefore slowing down its provision, when they conclude that the stock of credit has grown to excessive levels relative to the benchmarks of the past experience ...
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FORM 10-Q - Barchart.com
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... December 31, 2000, has not changed materially unless otherwise disclosed herein. Financial information as of December 31, 2000, included in these financial statements has been derived from the audited consolidated financial statements included in that report. In management's opinion all adjustments ...
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... – In the near term, the focus is to establish self-discipline in the formation of market interest rates, to grant financial institutions more discretion in setting their interest rates, to establish the prime lending rate fixing as an effective benchmark for the pricing of loan products, to promote ...
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... 1958. Their theory evolved into two main theories; static trade off theory by Krauz & Litzebnerger (1973), and pecking order theory by Myers & Majluf (1984). The studies related to corporate capital structure often use firms in developed countries as their sample data. Japan, which is one of the lar ...
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Enhancing Access to Finance for Micro and Small Enterprises in Egypt

... Although the stock of micro and small enterprises has grown at an average annual rate of over four percent during the past ten years, and micro and small enterprise employment has increased at an annual rate of over five percent, the micro and small enterprise sector is highly vulnerable. The averag ...
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... DeAngelo, DeAngelo and Stulz (2006), among others, have found that a firm’s propensity to pay dividends is a function of which stage a firm is in its life cycle. In particular, Bulan, Subramanian and Tanlu (2007) find that dividend initiators are mature firms. Based on this body of work, we identify ...
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... saving, with particular focus on pension reforms in the context of the UK. High saving rates, even if on its own it cannot guarantee growth, are associated with growth performance. While bequest and dynamic motives – i.e. life-cycle retirement motives – are more important in explaining national savi ...
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... annual targets. These have included major exchange rate shocks, which cannot be ignored in a highly open small economy, and which led to unusually persistent inflation pressures in the early 1990s. Another source of shock has been the introduction of new payments technologies. To provide more flexib ...
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Saving in New Zealand - Issues and Options
Saving in New Zealand - Issues and Options

< 1 ... 104 105 106 107 108 109 110 111 112 ... 239 >

Global saving glut

Global saving glut (also global savings glut, GSG, cash hoarding, dead cash, dead money, glut of excess intended saving, shortfall of investment intentions), describes a situation in which desired saving exceeds desired investment. By 2005 Ben Bernanke, chairman of the Federal Reserve, the central bank of the United States, expressed concern about the ""significant increase in the global supply of saving"" and its implications for monetary policies, particularly in the United States. Although Bernanke's analyses focused on events in 2003 to 2007 that led to the 2007–2009 financial crisis, regarding GSG countries and the United States, excessive saving by the non-financial corporate sector (NFCS) is an ongoing phenomenon, affecting many countries. Bernanke's ""celebrated (if sometimes disputed)"" global saving glut (GSG) hypothesis argued that increased capital inflows to the United States from GSG countries were an important reason that U.S. longer-term interest rates from 2003 to 2007 were lower than expected.Alan Greenspan testifying at the Financial Crisis Inquiry Commission in 2010 explained, ""Whether it was a glut of excess intended saving, or a shortfall of investment intentions, the result was the same: a fall in global real long-term interest rates and their associated capitalization rates. Asset prices, particularly house prices, in nearly two dozen countries accordingly moved dramatically higher. U.S. house price gains were high by historical standards but no more than average compared to other countries.""An 2007 Organisation for Economic Co-operation and Development (OECD) report noted that the ""excess of gross saving over fixed investment (i.e. net lending) in the ""aggregate OECD corporate sector"" had been unusually large since 2002. In a 2006 International Monetary Fund report, it was observed that, ""since the bursting of the equity marketbubble in the early 2000s, companies in many industrial countries have moved from their traditional position of borrowing funds to finance their capital expenditures to running financial surpluses that they are now lending to other sectors of the economy."" David Wessell in a Wall Street Journal article observed that, ""[c]ompanies, which normally borrow other folks’ savings in order to invest, have turned thrifty. Even companies enjoying strong profits and cash flow are building cash hoards, reducing debt and buying back their own shares—instead of making investment bets."" Although the hypothesis of excess cash holdings or cash hoarding has been used by the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund and the media Wall Street Journal, Forbes, Canadian Broadcasting Corporation, the concept itself has been disputed and criticized as conceptually flawed in articles and reports published by the Hoover Institute, the Max-Planck Institute and the CATO Institute among others. Ben Bernanke used the phrase ""global savings glut"" in 2005 linking it to the U.S. current account deficit.In their July 2012 report Standard and Poors described the ""fragile equilibrium that currently exists in the global corporate credit landscape."" U.S. nonfinancial corporate sector NFCS firms continued to hoard a ""record amount of cash"" with large profitable investment-grade companies and technology and health care industries (with significant amounts of cash overseas), holding most of the wealth.By January 2013, NFCS firms in Europe had over 1 trillion euros of cash on their balance sheets, a record high in nominal terms.
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