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 ...
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... discipline” on banks, where the government has a currency board and lets runs happen. However, it cannot avoid supporting healthy banks affected by contagion, as it had to do in 1991 after the fall of BCCI and again during the Asian Crisis of 1997–98. Bank runs also occurred in Indonesia during the ...
... discipline” on banks, where the government has a currency board and lets runs happen. However, it cannot avoid supporting healthy banks affected by contagion, as it had to do in 1991 after the fall of BCCI and again during the Asian Crisis of 1997–98. Bank runs also occurred in Indonesia during the ...
Financial Intermediation, Resource Allocation, and Macroeconomic Interdependence ⇤ Job Market Paper
... in the model is funded by issuing interest bearing reserves to domestic and foreign banks, which decreases the efficacy of the policy due to frictions in banking. This way of modeling unconventional policy is realistic for the Eurozone, as there is no central government that can issue bonds to househo ...
... in the model is funded by issuing interest bearing reserves to domestic and foreign banks, which decreases the efficacy of the policy due to frictions in banking. This way of modeling unconventional policy is realistic for the Eurozone, as there is no central government that can issue bonds to househo ...
NBER WORKING PAPERS SERIES ANATOMY OF A FINANCIAL CRISIS Frederic S. Mishkin
... assets that it can use to pay off its loans. High net worth also directly decreases the incentives for borrowers to commit moral hazard because they now have more at stake, and thus more to lose, if they default on their loans. Hence, when firms seeking credit have high net worth, the consequences o ...
... assets that it can use to pay off its loans. High net worth also directly decreases the incentives for borrowers to commit moral hazard because they now have more at stake, and thus more to lose, if they default on their loans. Hence, when firms seeking credit have high net worth, the consequences o ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... 5. Mishkin (1999, 686), furthermore, states that the “benefits of increased diversification open up opportunities for reform of the banking system because it makes broad-based deposit insurance less necessary and weakens the political forces supporting it.” 6. This may reflect the fact that in such ...
... 5. Mishkin (1999, 686), furthermore, states that the “benefits of increased diversification open up opportunities for reform of the banking system because it makes broad-based deposit insurance less necessary and weakens the political forces supporting it.” 6. This may reflect the fact that in such ...
Modelling for monetary policy: the New Zealand experience
... a period of considerable structural change and volatility in asset markets. For monetary policy, there were no stable anchors or guidelines that could be relied on. Inflation expectations were high and variable, making it difficult to assess the true level of real interest rates. The exchange rate and ...
... a period of considerable structural change and volatility in asset markets. For monetary policy, there were no stable anchors or guidelines that could be relied on. Inflation expectations were high and variable, making it difficult to assess the true level of real interest rates. The exchange rate and ...
NBER WORKING PAPER SERIES BANKS, MARKET ORGANIZATION, AND MACROECONOMIC PERFORMANCE:
... finance their fixed and working capital. The banks are subject to a number of regulations, such as required capital adequacy ratios and limits on loan-to-value ratios. We calibrate the model to U.S. data and simulate it many times for many periods under different parameter values to see how banks af ...
... finance their fixed and working capital. The banks are subject to a number of regulations, such as required capital adequacy ratios and limits on loan-to-value ratios. We calibrate the model to U.S. data and simulate it many times for many periods under different parameter values to see how banks af ...
Macroeconomic Determinants of Loan Portfolio Credit Risk in Banks
... The researches have shown that in association with GDP such macroeconomic indicators as inflation, interest rates, money supply, industrial production index and other are generally used in analysis (Pilinkus, 2010). The empirical results of Wong, Wong, Leung (2010) indicated that systemic banking di ...
... The researches have shown that in association with GDP such macroeconomic indicators as inflation, interest rates, money supply, industrial production index and other are generally used in analysis (Pilinkus, 2010). The empirical results of Wong, Wong, Leung (2010) indicated that systemic banking di ...
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 ...
M09_MishkinEakins3427056_08_FMI_C09
... and congressional pressure in pursuing its goals. • Instrument Independence: the ability of the central bank to set monetary policy instruments. • Goal Independence: the ability of the central bank to set the goals of monetary policy. • Evidence suggests that the Fed is free along both dimensions. F ...
... and congressional pressure in pursuing its goals. • Instrument Independence: the ability of the central bank to set monetary policy instruments. • Goal Independence: the ability of the central bank to set the goals of monetary policy. • Evidence suggests that the Fed is free along both dimensions. F ...
Global Financial and Economic Crises: Can they be prevented
... and widespread business and personal bankruptcies. What is important to note is that prior to the crash, in all the affected countries, there was an economic boom due to massive inflows of foreign funds in the form of either hot money into the stock market or foreign loans. Another type of financial ...
... and widespread business and personal bankruptcies. What is important to note is that prior to the crash, in all the affected countries, there was an economic boom due to massive inflows of foreign funds in the form of either hot money into the stock market or foreign loans. Another type of financial ...
invEsTORs CHECking FEEs AnD TERms
... • F or all deposits, the first $200 of a day’s deposit of check(s) will be made available immediately. • If something causes a longer hold on a deposit, the first $500 of that deposit will be made available either the same business day of the deposit or the next business day ...
... • F or all deposits, the first $200 of a day’s deposit of check(s) will be made available immediately. • If something causes a longer hold on a deposit, the first $500 of that deposit will be made available either the same business day of the deposit or the next business day ...
Limited Commitment and Central Bank Lending
... Loan commitment agreements contain covenants that place restrictions on the borrower’s future financial condition. If the borrower violates one of the covenants, the lender has the right (though not the obligation) to terminate the agreement and demand immediate repayment. Some covenants utilize spe ...
... Loan commitment agreements contain covenants that place restrictions on the borrower’s future financial condition. If the borrower violates one of the covenants, the lender has the right (though not the obligation) to terminate the agreement and demand immediate repayment. Some covenants utilize spe ...
Direct Deposit
... House) file to be routed to the specified financial institution—without printing a check. So instead of having to take the time to run to the bank themselves, wait in long lines, and wait for the check to clear, your employees will see the money in their accounts on payday. They will also be able ...
... House) file to be routed to the specified financial institution—without printing a check. So instead of having to take the time to run to the bank themselves, wait in long lines, and wait for the check to clear, your employees will see the money in their accounts on payday. They will also be able ...
Money Growth and Inflation
... •A government can pay for its spending simply by printing more money. •This can result in an “inflation tax” and hyperinflation. •According to the Fisher effect, when the inflation rate rises, the nominal interest rate rises by the same amount, and the real interest rate stays the same. •Many people ...
... •A government can pay for its spending simply by printing more money. •This can result in an “inflation tax” and hyperinflation. •According to the Fisher effect, when the inflation rate rises, the nominal interest rate rises by the same amount, and the real interest rate stays the same. •Many people ...
A cash rate system for implementing monetary policy
... tary conditions, reserving actual adjustments to the quantity of settlement cash as a backstop measure if required. Signalling statements made by the Bank about the appropriateness of prevailing monetary conditions became a key feature of monetary policy implementation in New Zealand over the last d ...
... tary conditions, reserving actual adjustments to the quantity of settlement cash as a backstop measure if required. Signalling statements made by the Bank about the appropriateness of prevailing monetary conditions became a key feature of monetary policy implementation in New Zealand over the last d ...
GMAC Demand Notes – What`s the Risk
... With all the talk of a GM bankruptcy, many investors have been asking the question – What’s the risk in holding GMAC Demand Notes? For years many have utilized GMAC Demand Notes as an account for cash reserves that pays a much higher rate of interest (5.5% as of 12/30/05) than a typical money market ...
... With all the talk of a GM bankruptcy, many investors have been asking the question – What’s the risk in holding GMAC Demand Notes? For years many have utilized GMAC Demand Notes as an account for cash reserves that pays a much higher rate of interest (5.5% as of 12/30/05) than a typical money market ...
Sell government securities: Market
... May be called at anytime, or after a certain minimum period of time, for a specified fee ...
... May be called at anytime, or after a certain minimum period of time, for a specified fee ...
Desan SHEAR submission - Society for Historians of the Early
... produced phenomena characteristic of capitalism. Certain designs for money, for example, use the profit calculus of bankers to modulate the money supply, elevating that interest-‐driven agency by assigning it ...
... produced phenomena characteristic of capitalism. Certain designs for money, for example, use the profit calculus of bankers to modulate the money supply, elevating that interest-‐driven agency by assigning it ...
Macroeconomic Developments in Central European Economies
... and provide financial stability reports. • Some central banks believe in bening neglect scenario while some other view credit dynamics as a risk (mainly these in countries with foreign currency lending). • Some countries try to act: the impact of measures weak as in some industrial countries. ...
... and provide financial stability reports. • Some central banks believe in bening neglect scenario while some other view credit dynamics as a risk (mainly these in countries with foreign currency lending). • Some countries try to act: the impact of measures weak as in some industrial countries. ...