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Leverage Across Firms, Banks and Countries
Leverage Across Firms, Banks and Countries

... US and to a lesser extent in Europe. Large banks have a comparative advantage in raising funds in short-term markets (overnight repurchase agreements and commercial paper) and they were able to increase leverage pre-crisis and skirt capital requirements by using off-balance sheet investment vehicles ...
Bank risk – return efficiency and bond spread: Evidence of market
Bank risk – return efficiency and bond spread: Evidence of market

... The increasing size and complexity of the financial system has made the regulation growing sharply through years, accounting for an increased desire to control banking activities and to avoid systemic crises in protecting bank safety. In particular pillar 3 of Basel II Accords suggests to reinforce ...
Community Development Investment Review: Conference
Community Development Investment Review: Conference

Towards a General Theory of Financial Regulation
Towards a General Theory of Financial Regulation

... effective if the economy has reached a certain stage of growth. Defining regulatory change necessitates understanding the way financial systems can evolve. A taxonomy of regulatory models is a prerequisite as it outlines the diversity of permutations and combinations that can exist across financial ...
A Theoretical Model of ‘Riskless Capitalism’ Rohit and Prasenjit Bose
A Theoretical Model of ‘Riskless Capitalism’ Rohit and Prasenjit Bose

... saddle point so even though the economy might reach this point if it happens to be on its stable arm, there is a risk of it falling off the edge on either side. On the higher side, it increases till it hits the credit contraint (δmax ) beyond which it can’t increase. In case defaults start rising an ...
Why Capital Markets Matter
Why Capital Markets Matter

... to the entire annual economic output of Norway (or, if you’re a Tar Heel fan, the size of North Carolina’s economy).30 Endowments support scholarships, pay for professors, fund cutting-edge research, and bankroll extracurricular activities. But it’s not just the cash they collect from alumni; it’s t ...
A History of Money and Banking - Lecture 5 - cerge-ei
A History of Money and Banking - Lecture 5 - cerge-ei

... barter –> double coincidence of wants –> expensive to transact occupational and regional division of labour –> a need to transact → commodity money as an institution facilitating transactions non-coincidence of wants –> store of value → coins in circulation: Greek, Roman, Byzantine, Carolingian empi ...
What is a macroprudential policy?
What is a macroprudential policy?

Risk Incentives in an Interbank Network
Risk Incentives in an Interbank Network

A Closer Look at Money Market Funds: Bank CD Alternatives
A Closer Look at Money Market Funds: Bank CD Alternatives

... against credit risk. Conversely, the principal value of the typical bank savings account or CD is insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC). Nevertheless, money funds represent a highly attractive alternative to bank accounts, small CDs, and even money market deposit ...
Monetary Policy, Financial Conditions, and Financial Stability
Monetary Policy, Financial Conditions, and Financial Stability

The private value of too-big-to-fail guarantees
The private value of too-big-to-fail guarantees

... alternative explanations for mergers between banks. To correct for these effects, these studies add proxies of bank riskiness as controls. A second way to address this issue is by identifying mergers below and above a particular too-big-to-fail level. Of course, the problem here is to identify what ...
American Attitudes Toward Foreign Direct Investment in
American Attitudes Toward Foreign Direct Investment in

... Real property law in the United States is generally a matter for state, not federal, law, and dates from the initial reception of the English common law by the original colonies (42]. It is not uniform [43]. In numerous instances the states built upon the English common law by adding their own restr ...
The growth of emerging economies and global macroeconomic
The growth of emerging economies and global macroeconomic

... To address this question I develop a two-country model where financial intermediaries play a central role in transferring resources from agents in excess of funds (lenders) to agents in need of funds (borrowers). Financial intermediaries issue liabilities and make loans. Differently from recent mac ...
Determinants of banking system fragility: a - ECB
Determinants of banking system fragility: a - ECB

... 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 the exception of Asia and Europe, where it has no effect. A possible explanation is that average c ...
The Effect of Market Power on Stability and Performance of Islamic
The Effect of Market Power on Stability and Performance of Islamic

... new studies find risk-incentive mechanisms that show the opposite direction, meaning banks take on more risk when become more concentrated. Uhde and Heimeshoff (2009) have classified the existing arguments regarding these two views. According to this classification, proponents of the “concentrations ...
Official Information of 27 June 2012
Official Information of 27 June 2012

... Financial Market Regulation and International Cooperation Department Responsible employee: Ing. Svobodová, tel. 224 412 383 ...
Why did high productivity growth of banks precede the financial crisis?
Why did high productivity growth of banks precede the financial crisis?

... has also different features from the USA and other countries in two main aspects2. First, securitized loans remained in the balance sheets of banks and they were subject to capital requirements, and, second, savings banks, with market share similar than commercial banks, compete in an equal basis wi ...
1 Describe the three phases of money laundering. What are the two
1 Describe the three phases of money laundering. What are the two

... The significance of a trust account — whether onshore or  offshore — in the context of money laundering cannot be  understated: It can be used as part of the first step in  converting illicit cash into less suspicious assets; it can help  hide criminal ownership of funds or other assets; and it is  ...
What a Mutual Fund is
What a Mutual Fund is

... Income funds are named appropriately: their purpose is to provide current income on a steady basis. When referring to mutual funds, the terms "fixed-income," "bond," and "income" are synonymous. These terms denote funds that invest primarily in government and corporate debt. While fund holdings may ...
Good First--and Maybe Only--Funds
Good First--and Maybe Only--Funds

... indexed, also called actively managed funds, might not own the same types of stocks day in and day out. It all depends on the manager's style. He or she may like large companies one day and then see value in smaller firms the next. Finally, index-fund investors don't have to worry about manager turn ...
1.1. Necessity of the research problem
1.1. Necessity of the research problem

... decrease and financial position and prestige worsening. Credit risks at a high level result in new risks such as insolvency (this risk can cause bankruptcy) or negative transfer effect in the banking field. During the past years, credit activities of Techcombank have contributed significantly to the ...
Present Bank Regulation in Burma
Present Bank Regulation in Burma

ESTIMATINg pROBABILITY Of DEfAULT AND COMpARINg IT TO
ESTIMATINg pROBABILITY Of DEfAULT AND COMpARINg IT TO

... borrowers into five credit grades, from A to E. The two main criteria that they should consider in classification are the financial health and credit overdue of a firm. Collateral can be used in the assessment only if it is best-quality. All the firms which pledged bestquality collateral can be clas ...
Bank lending during the financial crisis of 2008
Bank lending during the financial crisis of 2008

... lines (prior commitments by banks to lend to corporations at prespecified rates and up to prespecified limits). From news accounts alone, we are able to record $26.8 billion of credit-line drawdowns, which accounts for approximately 25% of the increase in C&I loans reported on bank balance sheets. In ...
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Shadow banking system

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. Former Federal Reserve Chair Ben Bernanke provided a definition in April 2012: ""Shadow banking, as usually defined, comprises a diverse set of institutions and markets that, collectively, carry out traditional banking functions--but do so outside, or in ways only loosely linked to, the traditional system of regulated depository institutions. Examples of important components of the shadow banking system include securitization vehicles, asset-backed commercial paper (ABCP) conduits, money market mutual funds, markets for repurchase agreements (repos), investment banks, and mortgage companies."" Shadow banking has grown in importance to rival traditional depository banking but was a primary factor in the subprime mortgage crisis of 2007-2008 and global recession that followed.
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