Cross-Industry Product Diversification
... considerable level of convergence in terms of savings and risk management products and assetliability instruments. The overlap in the two sectors is especially apparent in markets where products offered by banks, such as credit-default swaps (CDS), closely resemble a casualty insurance policy; albei ...
... considerable level of convergence in terms of savings and risk management products and assetliability instruments. The overlap in the two sectors is especially apparent in markets where products offered by banks, such as credit-default swaps (CDS), closely resemble a casualty insurance policy; albei ...
jeopardy - Northern Highlands
... Name three things you should consider when comparing financial institutions. Favorable interest rates Free or low cost checking Will it loan me money Is it FDIC or SAIF insured Convenient locations Other services JEOPARDY ...
... Name three things you should consider when comparing financial institutions. Favorable interest rates Free or low cost checking Will it loan me money Is it FDIC or SAIF insured Convenient locations Other services JEOPARDY ...
Financial Sector Review Questions
... e. Forecasts for future corporate profits are gloomier than expected. ...
... e. Forecasts for future corporate profits are gloomier than expected. ...
1. Introduction and summary
... 2.5% and a rate on government bonds of 4.2%. The rate of return on bank equity was at a historical low because of the financial crisis. We therefore use an average value from previous years (14.3%). Based on data from Eurostat, V. Escudero (2009) reports that the employment share of financial interm ...
... 2.5% and a rate on government bonds of 4.2%. The rate of return on bank equity was at a historical low because of the financial crisis. We therefore use an average value from previous years (14.3%). Based on data from Eurostat, V. Escudero (2009) reports that the employment share of financial interm ...
Financial Stability Report November 2009 Contents
... have tightened over the past 18 months. The supply of credit ...
... have tightened over the past 18 months. The supply of credit ...
The Cyprus Depositor Haircut
... Cyprus. The Cyprus contribution was to partly come from a 6.75% levy on all deposits at Laiki and Bank of Cyprus and 9.9% levy on deposits over €100,000. The levy announcement reverberated through European society and financial markets as it implied that the national deposit guarantees on the first ...
... Cyprus. The Cyprus contribution was to partly come from a 6.75% levy on all deposits at Laiki and Bank of Cyprus and 9.9% levy on deposits over €100,000. The levy announcement reverberated through European society and financial markets as it implied that the national deposit guarantees on the first ...
Financial Crises, Bank Risk Exposure and Government Financial
... possible to address this issue. In this paper we develop a macroeconomic model with an intermediation sector that allow banks the option to issue outside equity as well as short term debt. This makes bank risk exposure an endogenous choice. Here the goal is to have a model that can not only capture ...
... possible to address this issue. In this paper we develop a macroeconomic model with an intermediation sector that allow banks the option to issue outside equity as well as short term debt. This makes bank risk exposure an endogenous choice. Here the goal is to have a model that can not only capture ...
Should the Government be in the Banking Business? The Role of
... But what are the conditions under which state ownership can be preferable to contracting and regulation? Following Shleifer (1998) it is useful to start by assuming a benevolent government and then look at what happens if this assumption is relaxed. Shleifer starts by making the point that if the g ...
... But what are the conditions under which state ownership can be preferable to contracting and regulation? Following Shleifer (1998) it is useful to start by assuming a benevolent government and then look at what happens if this assumption is relaxed. Shleifer starts by making the point that if the g ...
Inherited or Earned? Performance of Foreign Banks in Central
... accepted in the empirical literature is to introduce a dummy variable that takes the value of one for a bank after it has been acquired by a foreign institution and zero otherwise. However, such an approach may fail to pick up any significant changes in the postacquisition performance of banks. Ther ...
... accepted in the empirical literature is to introduce a dummy variable that takes the value of one for a bank after it has been acquired by a foreign institution and zero otherwise. However, such an approach may fail to pick up any significant changes in the postacquisition performance of banks. Ther ...
Ingo(104).pdf
... There is a lively literature that discusses bank credit in the context of informational asymmetries, financial distress and agency costs. Based on the lending relationship between banks and SMEs, it is considered that the inherent information asymmetries drive borrowed firms to harsh credit constrai ...
... There is a lively literature that discusses bank credit in the context of informational asymmetries, financial distress and agency costs. Based on the lending relationship between banks and SMEs, it is considered that the inherent information asymmetries drive borrowed firms to harsh credit constrai ...
P a g e 1
... Michelsen was on to a fundamental problem. Banks have critical functions in a modern economy. First, banks play a key role in the payment system. In one way or another, practically all payments go through banks. Individuals and firms have bank deposits that they depend on for making payments. Banks ...
... Michelsen was on to a fundamental problem. Banks have critical functions in a modern economy. First, banks play a key role in the payment system. In one way or another, practically all payments go through banks. Individuals and firms have bank deposits that they depend on for making payments. Banks ...
Does Market Structure Matter on Banks׳ Profitability and Stability
... allocated efficiently. As Albertazzi and Gambacorta (2009) argue, because of phenomena such as globalization, growing international financial markets, deregulation and advances in technology, identifying the determinants of bank performance is an important predictor of unstable economic conditions. ...
... allocated efficiently. As Albertazzi and Gambacorta (2009) argue, because of phenomena such as globalization, growing international financial markets, deregulation and advances in technology, identifying the determinants of bank performance is an important predictor of unstable economic conditions. ...
Money in the equilibrium of banking
... transactions, with the price level being determined by the aggregate supply of money. The New Keynesian (“Woodfordian”) monetary theory focuses on interest rate adjustments as mechanism for stabilizing the price level. However, in both perspectives banks essentially do nothing more than passively tr ...
... transactions, with the price level being determined by the aggregate supply of money. The New Keynesian (“Woodfordian”) monetary theory focuses on interest rate adjustments as mechanism for stabilizing the price level. However, in both perspectives banks essentially do nothing more than passively tr ...
Bank Liabilities Channel
... Abstract The financial intermediation sector is important not only for channeling resources from agents in excess of funds to agents in need of funds (lending channel). By issuing liabilities it also creates financial assets held by other sectors of the economy for insurance purpose. When the interm ...
... Abstract The financial intermediation sector is important not only for channeling resources from agents in excess of funds to agents in need of funds (lending channel). By issuing liabilities it also creates financial assets held by other sectors of the economy for insurance purpose. When the interm ...
Research Report The Bank of North Dakota: New England Public Policy Center
... identify market weaknesses that a public bank potentially could be called upon to fill. The report recommends that the Massachusetts study commission proceed in two steps. The first is to identify the economic and financial goals that reforming public or quasipublic institutions are intended to achi ...
... identify market weaknesses that a public bank potentially could be called upon to fill. The report recommends that the Massachusetts study commission proceed in two steps. The first is to identify the economic and financial goals that reforming public or quasipublic institutions are intended to achi ...
Professeur à l`Ecole Polytechnique et Président d`AMAFI
... any price. • The market nature of traded assets aggravates the run, and worse, creates contagion to similar instrument or asset classes, which starts the systemic chain reaction. •In terms of moral hazard, it should be noted that although shadow banking does not enjoy to Central bank liquidity, at l ...
... any price. • The market nature of traded assets aggravates the run, and worse, creates contagion to similar instrument or asset classes, which starts the systemic chain reaction. •In terms of moral hazard, it should be noted that although shadow banking does not enjoy to Central bank liquidity, at l ...
Guidelines on Financing to Housing Builders/Developer
... operated by the builder/developer and bank/DFI under escrow banking arrangements to ensure that funds are not diverted to the detriment of lender. • All project-related transactions including disbursement to the contractors/sub-contractors and collection of money on account of booking of flats and h ...
... operated by the builder/developer and bank/DFI under escrow banking arrangements to ensure that funds are not diverted to the detriment of lender. • All project-related transactions including disbursement to the contractors/sub-contractors and collection of money on account of booking of flats and h ...
Financial Stability Report May 2008 Contents
... Zealand financial institutions in the event that global market disruptions were to intensify. • A planned review of prudential liquidity policy for banks. • The implementation of the new Basel II regime for the determination of minimum regulatory capital. • The Reserve Bank’s new role as regulato ...
... Zealand financial institutions in the event that global market disruptions were to intensify. • A planned review of prudential liquidity policy for banks. • The implementation of the new Basel II regime for the determination of minimum regulatory capital. • The Reserve Bank’s new role as regulato ...
Lebanese Banks
... Disclaimer: This document has been issued by FFA Private Bank for informational purposes only. This document is not an offer or a solicitation to buy or sell the securities mentioned. Although FFA Private Bank s.a.l. makes reasonable efforts to provide accurate information and projections, certain s ...
... Disclaimer: This document has been issued by FFA Private Bank for informational purposes only. This document is not an offer or a solicitation to buy or sell the securities mentioned. Although FFA Private Bank s.a.l. makes reasonable efforts to provide accurate information and projections, certain s ...
Banking Crises and the Rules of the Game
... over time or across countries. Banking crises have not regularly and consistently accompanied business cycles. In fact, banking crises have been much more frequent in some eras than in others and much more frequent in some countries than in others. The differences across countries and across time ar ...
... over time or across countries. Banking crises have not regularly and consistently accompanied business cycles. In fact, banking crises have been much more frequent in some eras than in others and much more frequent in some countries than in others. The differences across countries and across time ar ...
Banking System Liquidity - Central Bank of Nigeria
... concepts of monetary policy and some technical aspects of central banking and their applications, would be treated to a menu of key monetary policy subject areas and may also have an opportunity to enrich their knowledge base of the key issues. In order to achieve the primary objective of the series ...
... concepts of monetary policy and some technical aspects of central banking and their applications, would be treated to a menu of key monetary policy subject areas and may also have an opportunity to enrich their knowledge base of the key issues. In order to achieve the primary objective of the series ...
Economi versus Regulatory Capital
... experience significant growth. Recent methodological advances in measuring individual risk types, such as credit and operational risk, and sharply improved techniques for gathering and analysing information, are making truly firm-wide risk measurement systems feasible. An example of such a system is ...
... experience significant growth. Recent methodological advances in measuring individual risk types, such as credit and operational risk, and sharply improved techniques for gathering and analysing information, are making truly firm-wide risk measurement systems feasible. An example of such a system is ...
Capital Requirements, Risk Choice, and Liquidity Juliane Begenau Harvard Business School
... model captures the business cycle dynamics of the banking sector as well as macroeconomic aggregates. Calibrating the model, I nd that the capital requirement should be 14% of risky assets. This level trades o the reduced supply of safe and liquid assets in the form of bank debt against a lower ou ...
... model captures the business cycle dynamics of the banking sector as well as macroeconomic aggregates. Calibrating the model, I nd that the capital requirement should be 14% of risky assets. This level trades o the reduced supply of safe and liquid assets in the form of bank debt against a lower ou ...
foreign bank participation in emerging markets
... number of countries in emerging markets open their banking sectors to foreign equity participation. A decision to open up domestic markets to foreign entry has been generally taken after banking sector reforms such as transparency improvement and regulatory oversight efforts, related to domestic eco ...
... number of countries in emerging markets open their banking sectors to foreign equity participation. A decision to open up domestic markets to foreign entry has been generally taken after banking sector reforms such as transparency improvement and regulatory oversight efforts, related to domestic eco ...
political influence on bank credit allocation: bank capital responses
... (2005)). The desire of politicians to be involved in the functioning of the credit market is not a radical idea. Politics has influenced banking for centuries, and many have written about how factors like politics and career concerns shape the actions of legislators and bank regulators.1 In their re ...
... (2005)). The desire of politicians to be involved in the functioning of the credit market is not a radical idea. Politics has influenced banking for centuries, and many have written about how factors like politics and career concerns shape the actions of legislators and bank regulators.1 In their re ...
Bank
A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.