2024-03-29T12:33:04Z
https://mpra.ub.uni-muenchen.de/cgi/oai2
oai:mpra.ub.uni-muenchen.de:153
2019-10-25T18:11:37Z
oai:mpra.ub.uni-muenchen.de:157
2019-09-26T08:18:07Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
7375626A656374733D46:4633:463337
7375626A656374733D46:4633:463334
7375626A656374733D47:4733:473333
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/157/
How Law Affects Lending
Haselmann, Rainer
Pistor, Katharina
Vig, Vikrant
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
F37 - International Finance Forecasting and Simulation: Models and Applications
F34 - International Lending and Debt Problems
G33 - Bankruptcy ; Liquidation
A voluminous literature seeks to explore the relation between law and finance, but offers little insights into dynamic relation between legal change and behavioral outcomes or about the distributive effects of law on different market participants. The current paper disentangles the law-finance relation by using disaggregate data on banks’ lending patterns in 12 transition countries over a 8 year period. This allows us to control for country level heterogeneity and differentiate between different types of lenders. Employing a differences-in-differences methodology in an exclusive ”laboratory” setting as well as unique hand collected datasets on legal change as well as changes in
bank ownership, we find that lending volume responds positively to legal change. However,
not all legal change is equally effective. The introduction of a legal regime that
enhances each lender’s individual prospects of enforcing her claims (collateral law) results in greater increases in lending volume than changes in bankruptcy law, the essence of which is to provide an orderly liquidation or reorganization process in the presence of multiple creditors. Finally, we find that banks that newly enter the market respond more strongly to legal change than do incumbents. In particular, foreign-owned banks extend their lending volume substantially more than domestic banks.
2006-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/157/1/MPRA_paper_157.pdf
Haselmann, Rainer and Pistor, Katharina and Vig, Vikrant (2006): How Law Affects Lending.
en
oai:mpra.ub.uni-muenchen.de:191
2019-09-28T09:54:35Z
7374617475733D707562
7375626A656374733D4C:4C31:4C3133
7375626A656374733D47:4733:473334
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/191/
An analysis of mergers and acquisitions in the Turkish banking sector
Mumcu, Ayşe
Zenginobuz, Unal
L13 - Oligopoly and Other Imperfect Markets
G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
We explore various aspects of mergers and acquisitions in the banking industry within a simple model that allows explicit comparison of sector performance before and after the mergers and acquisitions. The industry structure we look at involves a few dominant banks and a competitive fringe, which we take it as the structure most likely to resemble the Turkish banking industry in the aftermath of the ongoing restructuring process. Using a reasonable set of parameters to simulate the model, we do comparative statics exercises regarding the impact of mergers among domestic as well as with foreign banks on equilibrium outcomes.
2002-01-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/191/1/MPRA_paper_191.pdf
Mumcu, Ayşe and Zenginobuz, Unal (2002): An analysis of mergers and acquisitions in the Turkish banking sector. Published in: Research in the Middle East Economics , Vol. Volume, (2005): pp. 133-162.
en
oai:mpra.ub.uni-muenchen.de:220
2019-09-26T11:53:03Z
7374617475733D696E7072657373
7375626A656374733D47:4732:473232
7375626A656374733D47:4731:473133
7375626A656374733D43:4336:433631
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/220/
Optimal hedging strategies for multi-period guarantees in the presence of transaction costs: A stochastic programming approach
Fleten, Stein-Erik
Lindset, Snorre
G22 - Insurance ; Insurance Companies ; Actuarial Studies
G13 - Contingent Pricing ; Futures Pricing
C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis
Multi-period guarantees are often embedded in life insurance contracts. In this paper we consider the problem of hedging these multi-period guarantees in the presence of transaction costs. We derive the hedging strategies for the cheapest hedge portfolio for a multi-period guarantee that with certainty makes the insurance company able to meet the obligations from the insurance policies it has issued. We find that by imposing transaction costs, the insurance company reduces the rebalancing of the hedge portfolio. The cost of establishing the hedge portfolio also increases as the transaction cost
increases. For the multi-period guarantee there is a rather large rebalancing of the hedge portfolio as we go from one period to the next. By introducing transaction costs we find the size of this rebalancing to be reduced. Transaction costs may therefore be one possible explanation for why we do not see the insurance companies performing a large rebalancing of their investment portfolio at the end of each year.
2004-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/220/1/MPRA_paper_220.pdf
Fleten, Stein-Erik and Lindset, Snorre (2004): Optimal hedging strategies for multi-period guarantees in the presence of transaction costs: A stochastic programming approach. Forthcoming in: European Journal of Operational Research
en
oai:mpra.ub.uni-muenchen.de:228
2019-09-28T07:21:36Z
7374617475733D696E7072657373
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/228/
The Financial Services Authority : A Model of Improved Accountability?
Ojo, Marianne
G28 - Government Policy and Regulation
Prior to the adoption of the FSA (Financial Services Authority) model, supervision of UK banks was carried out by the Bank of England. Although the Bank of England's informal involvement in bank supervision dates back to the mid nineteenth century, it was only in 1979 that it acquired formal powers to grant or refuse authorization to carry out banking business in the UK. Events such as the Secondary Banking Crisis of 1973-74 and the Banking Coordination Directive of 1977 resulted in legislative changes in the form of the Banking Act 1979. Bank failures through the following years then resulted in changes to the legislative framework. This article looks into the claim that the FSA model has improved in terms of accountability in comparison to its predecessor, the Bank of England. It considers the impact the FSA has made on the financial services sector and on certain legislation since its introduction. Through a comparison with the Bank of England, previous and present legislation, reports and other sources, an assessment can be made as to whether the FSA provides more accountability. Evidence provided here supports the conclusion that the FSA is both equipped with better accountability mechanisms and executes its functions in a more accountable way than its predecessor.
2005-11
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/228/1/MPRA_paper_228.pdf
Ojo, Marianne (2005): The Financial Services Authority : A Model of Improved Accountability? Forthcoming in: Global Journal of Business Research
en
oai:mpra.ub.uni-muenchen.de:262
2019-09-28T04:54:23Z
7374617475733D707562
7375626A656374733D4A:4A33:4A3332
7375626A656374733D48:4835:483535
7375626A656374733D47:4732:473233
7375626A656374733D46:4635
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/262/
World Bank Pension reforms and development patterns in the world system and in the "Wider Europe". A 109 country investigation based on 33 indicators of economic growth, and human, social and ecological well-being, and a European regional case study
Tausch, Arno
J32 - Nonwage Labor Costs and Benefits ; Retirement Plans ; Private Pensions
H55 - Social Security and Public Pensions
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
F5 - International Relations, National Security, and International Political Economy
This research paper compares the cross national effects of pension reform on 33 indicators of social, economic, political and ecological well-being of nations with the effects on these 33 variables by dependency, the adherence to the advice by international financial institutions, world political or world cultural identities; the aging process; feminism, militarism; the public education effort and the development level.
Traditionally, world system approaches explain human and economic misery by the dependent insertion of the periphery and the semi-periphery into the global economy.
It is true that the ascending countries of East Asia, whose investment is often much higher than their savings rate, are at the winning side in the global social equation. It is also true that unequal exchange (1/ERDI) is still an important phenomenon, significantly explaining many processes of development. However, the privatization of public education, especially at the Third level, the developmental negative consequences of female distribution coalitions as well as the imperative of pension reform have been up to now neglected in cross-national devel-opment research. Interestingly enough, „economic freedom“ as such is also not as relevant as pension reform in explaining economic or social success in the world system. We can say that foreign savings and pension reforms are among the most highly influential positive determi-nants of development today, while culturalist theories and dependency theories fail to achieve the levels of significance we had originally expected when compared to the new cross-national variable “pension reform”. These findings have important repercussions for the European debate on pension reform and the Lisbon strategy to catch up with the US by 2010 to make Europe the most competitive region in the world economy.
European Union membership years by themselves are lamentably enough a rather negative determinant of the processes of development due to the cumbersome mechanisms and distri-bution coalitions that European institutions present, and the reliance of many countries in the European Union on publicly financed systems of education also has to be re-considered. Po-litical feminism is another master variable of the European political discourse and it is the main loser in the 1990s and the early years of the 21st Century, indicating again that political distribution coalitions are likely to lose today and tomorrow. The results reported clearly indi-cate that world systems studies would be well advised to take the processes of pension reform very seriously.
To neglect pension funds in investigations about the capitalist world economy would be mis-leading at any rate. Private pension funds already amount to 44 % of current world GDP, with countries like the United States; Japan; United Kingdom; Netherlands; Canada; Switzerland; Australia; Sweden; Ireland; Finland; and Denmark taking the lead in fund development either via the introduction of a “World Bank” three pillar models or simply via a strong element of private pensions (“the third pillar”) besides the first, traditional PAYGO pillar (like presently in the United States of America). Slow pension fund development in most countries of the €-zone determines that the overall share of private pension funds from the €-zone is just over 2 % of world GDP. If Europe wants to fulfill its Lisbon agenda of catching up with the United States, it must overhaul its pension systems and introduce some form or other of private pen-sion funds, which are a major force in financing technological advance in the capitalist world economy today.
Our investigations also clearly show that World Bank pension reforms are associated in a positive way with the rates of change of a country’s performance to the better.
2005
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/262/1/MPRA_paper_262.pdf
Tausch, Arno (2005): World Bank Pension reforms and development patterns in the world system and in the "Wider Europe". A 109 country investigation based on 33 indicators of economic growth, and human, social and ecological well-being, and a European regional case study. Published in: Luxembourg Institute for European and International Studies No. Presented to the Conference on "Reforming European pension systems. In memory of Professor Franco Modigliani". 24 and 25 September 2004 (2005): pp. 1-154.
en
oai:mpra.ub.uni-muenchen.de:326
2019-09-27T05:39:15Z
7374617475733D756E707562
7375626A656374733D43:4334:433439
7375626A656374733D4C:4C31
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/326/
Strategic groups in Polish banking sector and financial stability
Hałaj, Grzegorz
Żochowski, Dawid
C49 - Other
L1 - Market Structure, Firm Strategy, and Market Performance
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The paper provides results of research concerning identification of strategic
groups in the Polish banking sector and tests of the usefulness of these
groups in the assessment of financial stability. The theory of strategic
groups predicts the existence of stable groups of companies, stemming from
the strategy adopted by them. The theory also predicts that groups differ
in performance. Our empirical research, preceded by a review of relevant
literature, has been carried out on the basis of a cluster analysis with the
use of Ward’s algorithm that optimises allocation of banks into groups. We
have identified strategic groups in the Polish banking sector, sustained over
time after the year 2000. We have also observed statistically significant differences
in performance between banks belonging to different groups, and
we have demonstrated further that modelling of profitability within groups
with the use of regression yields more precise estimates of parameters than
in the case of estimation of a model for the whole sector. Thus, breaking
down the whole banking sector into strategic groups creates a possibility to
forecast the banking sector earnings in a more precise way, i.e. to provide
a more precise ex ante assessment of stability of the financial system.
2006-03-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/326/1/MPRA_paper_326.pdf
Hałaj, Grzegorz and Żochowski, Dawid (2006): Strategic groups in Polish banking sector and financial stability.
en
oai:mpra.ub.uni-muenchen.de:328
2019-09-26T20:53:15Z
7374617475733D707562
7375626A656374733D47:4732
7375626A656374733D4F:4F31:4F3136
7375626A656374733D4F:4F35:4F3532
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/328/
Changes in the financing structure of the real economy in Poland - challenges for the banking sector
Pruski, Jerzy
Żochowski, Dawid
G2 - Financial Institutions and Services
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
O52 - Europe
Significant changes have occurred in the Polish banking sector over the last ten years. In the mid-1990s,
due to low market entry requirements, many small private commercial banks, which were frequently
established by foreign banks seeking to enter the Polish market, operated alongside state banks. A wave
of privatisation occurred in the banking sector, which was followed by a period of consolidation and
restructuring. These processes, coupled with a simultaneous increase in foreign investor participation,
enhanced management quality and banks’ efficiency, primarily with regard to risk management.
The changes, which took place in the Polish banking sector in the second half of the 1990s, improved
access to loans for corporates and households alike. As a result, lending grew rapidly. The increase
was, on average, more pronounced in the household sector than in the corporate one, which brought the
composition of bank loans to the private sector closer to what exists in the European Union. This
convergence has accelerated over the last five years. The purpose of this paper is to present the
phenomena which influenced the evolution of debt structure of the real economy sector in Poland as well
as to discuss related future challenges.
2005-08-20
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/328/1/MPRA_paper_328.pdf
Pruski, Jerzy and Żochowski, Dawid (2005): Changes in the financing structure of the real economy in Poland - challenges for the banking sector. Published in: BIS Papers No. No. 28 (August 2006): pp. 313-325.
en
oai:mpra.ub.uni-muenchen.de:343
2019-09-27T06:23:13Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D47:4730
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/343/
Inflation-Proof Credits and Financial Instruments. Making the Fisher Hypothesis a Reality.
Orus, Juan
González, Manuel
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G0 - General
The financial crises of recent years have revealed the sensitivity
and vulnerability of nominal interest rates to inflation, which reduces
the value of money and affects the returns of financial instruments.
The lack of resources to mitigate the impact of inflation has
been a limiting factor that has had a marked effect on economies
and on the development of mortgage markets in Latin America’s
unstable economies. This study demonstrates an alternative financial
method that compensates losses caused by inflation in nominal
fixed-rate mortgages and ensures returns in real terms for banks and
investors, while offering families the possibility that their payments
may represent an increasingly smaller percentage of their income,
even in high-inflation scenarios such as those seen in Latin America
during the 1980s and 1990s. The new methodology herein proposed
maintains in each period the parity of Fisher’s Law with inflation.
That is, the real interest rate is kept fixed throughout the life of the
mortgage and in any economic conditions that may arise.
2004-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/343/1/MPRA_paper_343.pdf
Orus, Juan and González, Manuel (2004): Inflation-Proof Credits and Financial Instruments. Making the Fisher Hypothesis a Reality.
en
oai:mpra.ub.uni-muenchen.de:359
2019-09-27T17:13:08Z
7374617475733D756E707562
7375626A656374733D47:4731:473134
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/359/
Information sharing in credit markets: incentives for incorrect information reporting
Semenova, Maria
G14 - Information and Market Efficiency ; Event Studies ; Insider Trading
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The introduction of institutions of credit information sharing - private credit bureaus and public credit registries - in the market for bank loans represent one of the possible solutions of information asymmetry problem, - the problem which the creditors tend to face. However the possibility of information sharing influences the bank's incentives in two different ways. While it disciplines the borrowers and, therefore, reduces the share of bad loans, a bank loses the competitive advantage, namely the monopolistic knowledge about the data in its clients' credit histories. Does the bank have an opportunity at its disposal to use the benefits of information sharing without losing its competitive advantage and its clientele? One way to do so is to report false data on borrowers. This paper analyses the bank's incentives for such opportunistic behavior and describes the impact of false information reporting on the characteristics of market equilibrium. The opportunity to get extra profit and to offer less expensive credit to new clients explains why banks prefer the strategy of dishonest behavior. This paper outlines the role of the informational intermediary in quality control for the data, contained in credit reports. Also, it describes the conditions under which verification of a certain share of reports provides that the parameters characterizing the equilibrium are equal to those in no information asymmetry situation.
2006-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/359/1/MPRA_paper_359.pdf
Semenova, Maria (2006): Information sharing in credit markets: incentives for incorrect information reporting.
en
oai:mpra.ub.uni-muenchen.de:430
2019-09-27T03:34:25Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/430/
The financing of innovative activities by banking institutions: policy issues and regulatory options
Ughetto, Elisa
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The paper investigates to what extent the convergence of banks over risk-adjusted capital standards set by the new Basel Capital Accord may affect the way in which they screen innovative firms. It also gives an overview of the existing forms of credit support to R&D activities. The study is built upon a survey conducted in January and February 2006 on 12 main Italian banking groups. The survey provides interesting insights on the use of non-financial parameters to assess the creditworthiness of potential borrowers and on the architecture of internal rating systems in the light of Basel II requirements. Results suggest that the majority of banks does not consider intangibles as meaningful determinants in credit risk assessment. This could imply that the sole implementation of the Accord might not lead to reduce informational asymmetries between lenders and borrowers as it could be expected. However, such an effect could be compensated by specific measures provided by single financial intermediaries.
2006-05-15
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/430/1/MPRA_paper_430.pdf
Ughetto, Elisa (2006): The financing of innovative activities by banking institutions: policy issues and regulatory options.
en
oai:mpra.ub.uni-muenchen.de:446
2019-09-27T05:32:33Z
7374617475733D707562
7375626A656374733D46:4633:463333
7375626A656374733D47:4732:473238
7375626A656374733D46:4635:463539
7375626A656374733D46:4635:463533
7375626A656374733D46:4634:463431
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/446/
Pasado, presente y futuro del fondo monetario internacional
Galindo Lucas, Alfonso
F33 - International Monetary Arrangements and Institutions
G28 - Government Policy and Regulation
F59 - Other
F53 - International Agreements and Observance ; International Organizations
F41 - Open Economy Macroeconomics
The great welcome that the recent FMI appointment for manager director have
received in Spain and other countries, has contributed to the defence of this
institution’s survival, notwithstanding that its work over 60 years have been hardly
censured somewhere else. Thus, an analysis of this institution’s legitimacy is required,
either in its formal shape and its material behaviour, as well as a study on the
foundations of this naming. The very existence and evolution of FMI has its basis on
questionable interests which turn aside the initial intentions declared and supposed as
legitimating ones. A survey of big translational firms interests can be performed,
specially of US ones, through the decision making and the defended positions of this multilateral organism. In such quantitatively important subjects as those contained in
that agency, the “opinion” creation becomes a very profitable element.
2004
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/446/1/MPRA_paper_446.pdf
Galindo Lucas, Alfonso (2004): Pasado, presente y futuro del fondo monetario internacional. Published in: Centro Argentino de Estudios Internacionales No. Programa Organismos Internacionales WP (2006)
es
oai:mpra.ub.uni-muenchen.de:475
2019-09-30T16:12:20Z
7374617475733D707562
7375626A656374733D4A:4A33:4A3332
7375626A656374733D48:4835:483535
7375626A656374733D52:5231:523131
7375626A656374733D46:4631:463135
7375626A656374733D47:4732:473233
7375626A656374733D46:4635
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/475/
Soziale und regionale Ungleichgewichte, politische Instabilitaet und die Notwendigkeit von Pensionsreformen im neuen Europa
Tausch, Arno
J32 - Nonwage Labor Costs and Benefits ; Retirement Plans ; Private Pensions
H55 - Social Security and Public Pensions
R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
F15 - Economic Integration
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
F5 - International Relations, National Security, and International Political Economy
If Europe wants to fulfill it’s Lisbon agenda of catching up with the United States, it must overhaul its pension systems and introduce some form or other of private pension funds, which are a major force in financing technological advance in the capitalist world economy today.
Our investigations clearly show that World Bank pension reforms are associated in a positive way with the rates of change of a country’s performance to the better. The time-series correlations for each country in the world system from 1980 onwards with economic growth (World Bank data series), unemployment (ILO data series), and economic inequality (Univer-sity of Texas Inequality Project) are neatly explained by our explanatory variables; the direc-tion of the influence of pension reform on the three dependent variables each time indicating that pension reform is compatible with economic growth, full employment and the redistribution of incomes.
The same positive effects are also at work in explaining economic growth, full employment and reductions of unemployment over time in Europe’s over 300 different regions. The Euro-pean regions, whose countries realized a three-pillar pension model, developed more rapidly and had – ceteris paribus – a better employment record than the non-reformers. Persistent non-reform, as the German example especially dramatically shows, can lead to a circulus vi-ciosus of stagnation and unemployment under the conditions of globalization.
2004
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/475/1/MPRA_paper_475.pdf
Tausch, Arno (2004): Soziale und regionale Ungleichgewichte, politische Instabilitaet und die Notwendigkeit von Pensionsreformen im neuen Europa. Published in: Schriftenreihe des Zentrums für europaeische Studien, University of Trier, FRG , Vol. 2004, No. 56 (2004): pp. 1-227.
de
oai:mpra.ub.uni-muenchen.de:497
2019-09-26T08:50:15Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/497/
Microfinanzas: Un análisis de experiencias y alternativas de regulacion
Delfiner, Miguel
Pailhé, Cristina
Perón, Silvana
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
During last years there has been an increasing interest about the study of microfinance phenomena as long as the activity has been developing in several countries. There has been an important literature body regarding the different topics related to this theme. This paper focuses on the analysis of experiences of microfinance institutions (MFI) in different countries and the different regulatory approaches suggested for MFI, with the aim of reaching policy conclusions.
2006-04-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/497/1/MPRA_paper_497.pdf
Delfiner, Miguel and Pailhé, Cristina and Perón, Silvana (2006): Microfinanzas: Un análisis de experiencias y alternativas de regulacion. Published in: Central Bank of Argentina (April 2006)
es
oai:mpra.ub.uni-muenchen.de:525
2019-09-27T17:18:42Z
7374617475733D756E707562
7375626A656374733D43:4336:433632
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/525/
Contagion effect in banking system - measures based on randomised loss scenarios
Hałaj, Grzegorz
C62 - Existence and Stability Conditions of Equilibrium
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Measures of risk of domino effect (contagion) transmitted through interbank
market are discussed and results on implementation of measurement
procedure in banking sector are presented. It is shown how a very limited
set of available data – interbank exposures and information from balance
sheets and profit a loss accounts – can help in generating randomised scenarios
of possible losses related to market and credit risk.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/525/1/MPRA_paper_525.pdf
Hałaj, Grzegorz (2006): Contagion effect in banking system - measures based on randomised loss scenarios.
en
oai:mpra.ub.uni-muenchen.de:580
2019-10-07T20:43:10Z
7374617475733D707562
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/580/
The Financial Services Authority : A Model of Improved Accountability?
Ojo, Marianne
G28 - Government Policy and Regulation
Prior to the adoption of the FSA (Financial Services Authority) model, supervision of UK banks was carried out by the Bank of England. Although the Bank of England's informal involvement in bank supervision dates back to the mid nineteenth century, it was only in 1979 that it acquired formal powers to grant or refuse authorization to carry out banking business in the UK. Events such as the Secondary Banking Crisis of 1973-74 and the Banking Coordination Directive of 1977 resulted in legislative changes in the form of the Banking Act 1979. Bank failures through the following years then resulted in changes to the legislative framework. This article looks into the claim that the FSA model has improved in terms of accountability in comparison to its predecessor, the Bank of England. It considers the impact the FSA has made on the financial services sector and on certain legislation since its introduction. Through a comparison with the Bank of England, previous and present legislation, reports and other sources, an assessment can be made as to whether the FSA provides more accountability. Evidence provided here supports the conclusion that the FSA is both equipped with better accountability mechanisms and executes its functions in a more accountable way than its predecessor.
2005-11
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/580/1/MPRA_paper_580.pdf
Ojo, Marianne (2005): The Financial Services Authority : A Model of Improved Accountability? Published in: Global Journal of Business Research , Vol. 1, (2007)
en
oai:mpra.ub.uni-muenchen.de:586
2019-10-02T16:49:13Z
7374617475733D756E707562
7375626A656374733D4E:4E32:4E3236
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/586/
Foreign ownership in Mexican Banking: A Self- Correcting Phenomenon
Tschoegl, Adrian
N26 - Latin America ; Caribbean
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Currently, foreign banks own the banks that hold about 80 percent of the assets in Mexican banks. The paper argues that this is the third instance in which foreign-owned banks have initially comprised a large part of the Mexican banking system, and that in the first two cases (1865-1910 and 1920-1935), the degree of foreign ownership will recede. The argument is that reform and competition among the banks will cause the conditions that attracted the foreign banks to erode and the domestic banks to be able to grow more rapidly. Therefore, in subsequent decades many foreigner owners are likely to sell their subsidiaries to local banks and investors. Thus over time the ratio of assets in foreign-owned banks to total banking system assets should decline, even in the absence of government policies that aim for that result.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/586/1/MPRA_paper_586.pdf
Tschoegl, Adrian (2006): Foreign ownership in Mexican Banking: A Self- Correcting Phenomenon.
en
oai:mpra.ub.uni-muenchen.de:652
2019-09-27T03:33:59Z
7374617475733D756E707562
7375626A656374733D47:4732:473230
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/652/
The Financial System of the EU 25
Allen, Franklin
Laura, Bartiloro
Oskar, Kowalewski
G20 - General
We present an overview of the financial structure of the enlarged European Union
with 25 countries. We start by describing the financial system development in all
member states since 1995, and then compare the structure between the old and new
countries. Using financial measures we document the prevailing substantial
differences in the financial structure between new and old member states after the
enlargement in 2004. Finally, we compare the financial structures of an enlarged EU
with those of the United States and Japan.
2005-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/652/1/MPRA_paper_652.pdf
Allen, Franklin and Laura, Bartiloro and Oskar, Kowalewski (2005): The Financial System of the EU 25.
en
oai:mpra.ub.uni-muenchen.de:677
2019-09-28T04:05:49Z
7374617475733D756E707562
7375626A656374733D47:4731:473134
7375626A656374733D47:4732:473233
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/677/
Institutional investors and stock market efficiency: The case of the January anomaly
Bohl, Martin T.
Gottschalk, Katrin
Pál, Rozália
G14 - Information and Market Efficiency ; Event Studies ; Insider Trading
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
In this paper, we investigate the effect of institutional investors on the January stock market anomaly. The Polish and Hungarian pension system reforms and the associated increase in investment activities of pension funds are used as a unique institutional characteristic to provide evidence on the impact of individual versus institutional investors on the January effect. We find robust empirical results that the increase in institutional ownership has reduced the magnitude of an anomalous January effect induced by individual investors’ trading behavior.
2006-03
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/677/1/MPRA_paper_677.pdf
Bohl, Martin T. and Gottschalk, Katrin and Pál, Rozália (2006): Institutional investors and stock market efficiency: The case of the January anomaly.
en
oai:mpra.ub.uni-muenchen.de:692
2019-09-28T22:38:05Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D47:4730
7375626A656374733D45:4535:453538
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/692/
The Distribution and Dispersion of Debt Burden Ratios Among Households in Poland and its Implications for Financial Stability
Dawid, Żochowski
Sławomir, Zajączkowski
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G0 - General
E58 - Central Banks and Their Policies
Debt burden ratio as measured on the aggregate level does not give an adequate assessment of the ability of the household sector to repay its debt. The low level of financial deepening in Poland is primarily reflected in a low percentage of households that have been granted a loan. Therefore, the average debt burden for households, which have any debt outstandings could be much higher than the one measured on the aggregate level. If the debt is concentrated among groups of households with lower incomes, it can threat the financial stability in case of FX or interest rate shocks. Using the data from Polish Households Budget Survey we first define three different measures of debt burden and calculate its dispersion in time and distribution among income groups. We find that (1) the total debt service burden and loan service burden ratios are on lower levels than in other European countries and recently have not risen substantially, (2) the mortgage debt service burden ratio has been rapidly increasing in the last four years especially in lower income groups of households reaching in 2004 the 3/4 of the level noted in EU-15. In comparison with EU it seems that the level of indebtedness of house- holds in Poland is on a secure level. However, we notice that the secure level of debt burden ratio is on a lower level in emerging market countries than in wealthier countries because of the higher share of basic living costs in total consumption expenditure. Therefore, the increasing levels of mortgage debt service ratios in lower-income groups could pose a potential threat to the financial stability in case of FX or interest rate shock.
2006-07-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/692/1/MPRA_paper_692.pdf
Dawid, Żochowski and Sławomir, Zajączkowski (2006): The Distribution and Dispersion of Debt Burden Ratios Among Households in Poland and its Implications for Financial Stability.
en
oai:mpra.ub.uni-muenchen.de:715
2019-10-02T04:40:13Z
7374617475733D756E707562
7375626A656374733D4F:4F34:4F3430
7375626A656374733D47:4732:473230
7375626A656374733D4F:4F31:4F3136
7375626A656374733D4F:4F31:4F3131
7375626A656374733D47:4731:473130
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/715/
Finance and growth in a small open emerging market
Law, Siong Hook
Azman-Saini, W.N.W.
Smith, Peter
O40 - General
G20 - General
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
O11 - Macroeconomic Analyses of Economic Development
G10 - General
This study contributes to the debate on financial development and economic growth in Malaysia using quarterly observations for a sample period from 1980 to 2002. It utilises a battery of financial indicators. Based on multivariate framework which takes real interest rate and capital stock into account, the findings are suggestive that finance does play a crucial role in promoting economic growth. Policymakers should, therefore, focus their attention on the creation and promotion of modern financial institutions including banks, non-banks, and stock markets in delivering both short- and long-run economic benefits.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/715/1/MPRA_paper_715.pdf
Law, Siong Hook and Azman-Saini, W.N.W. and Smith, Peter (2006): Finance and growth in a small open emerging market.
en
oai:mpra.ub.uni-muenchen.de:716
2019-10-10T04:40:41Z
7374617475733D756E707562
7375626A656374733D47:4732
7375626A656374733D46:4633:463331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/716/
Hedge funds, exchange rates and causality: Evidence from Thailand and Malaysia
Azman-Saini, W.N.W.
G2 - Financial Institutions and Services
F31 - Foreign Exchange
This article contributes to the debate on hedge funds and exchange rates in Thailand and Malaysia. It examines causal relations using a new Granger non-causality procedure proposed by Toda and Yamamoto (Journal of Econometrics, 66, 225-50, 1995). Monthly observations are utilized over a sample period from January, 1994 to April, 2002. The results show that the funds lead Thai baht for the crisis period. The results also reveal that the funds lead Malaysian ringgit for the pre-crisis period.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/716/1/MPRA_paper_716.pdf
Azman-Saini, W.N.W. (2006): Hedge funds, exchange rates and causality: Evidence from Thailand and Malaysia.
en
oai:mpra.ub.uni-muenchen.de:827
2019-10-02T14:38:04Z
oai:mpra.ub.uni-muenchen.de:860
2019-09-29T07:33:26Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/860/
Loss Given Default Modelling under the Asymptotic Single Risk Factor Assumption
Kim, Joocheol
Kim, KiHyung
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The proposals of the Basel Committee on Banking Supervision for the revision of minimum requirements for bank's risk capital leave the quanti¯cation of loss-given-default (LGD) parameter used for capital calculation unspeci¯ed. This paper proposes a new methodology for incorporating LGD parameter explicitly into the Basel risk weight function. Numerical examples based on the new methodology are compared to the current proposals of the Basel committee on Banking Supervision.
2006-11-17
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/860/1/MPRA_paper_860.pdf
Kim, Joocheol and Kim, KiHyung (2006): Loss Given Default Modelling under the Asymptotic Single Risk Factor Assumption. Published in: Asia-Pacific Journal of Financial Studies , Vol. 36, No. 2 (2007): pp. 223-236.
en
oai:mpra.ub.uni-muenchen.de:895
2019-09-27T16:02:55Z
7374617475733D707562
7375626A656374733D47:4732:473231
7375626A656374733D44:4438:443831
7375626A656374733D43:4335:433533
7375626A656374733D47:4732:473234
7375626A656374733D47:4733:473332
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/895/
Value at Risk yang memperhatikan sifat statistika distribusi return
Situngkir, Hokky
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
D81 - Criteria for Decision-Making under Risk and Uncertainty
C53 - Forecasting and Prediction Methods ; Simulation Methods
G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
Basel II Accord implicitely demands the usage of the recent statistical approaches to enrich the risk measurement in financial analysis. A widely known aspect in risk analysis today is the Value at Risk. We showed that the conventional VaR measurement regarding to the usage of normality as a basic principles is not met with the statistical properties discovered in a lot of financial data showing a-normality. The paper shows the comparative analysis of two methods to measure VaR: the one with normality basis and the other one realizing the two statistical moments, i.e.: skewness and kurtosis. The simulation results show that the latter gives better accuracy.
2006-04-27
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/895/1/MPRA_paper_895.pdf
Situngkir, Hokky (2006): Value at Risk yang memperhatikan sifat statistika distribusi return. Published in:
id
oai:mpra.ub.uni-muenchen.de:896
2019-10-04T16:47:00Z
7374617475733D707562
7375626A656374733D47:4732:473233
7375626A656374733D45:4535:453531
7375626A656374733D48:4835:483535
7375626A656374733D44:4438:443831
7375626A656374733D43:4335:433532
7375626A656374733D47:4733:473332
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/896/
Kerangka Kerja Ekonofisika dalam Basel II
Situngkir, Hokky
Surya, Yohanes
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
E51 - Money Supply ; Credit ; Money Multipliers
H55 - Social Security and Public Pensions
D81 - Criteria for Decision-Making under Risk and Uncertainty
C52 - Model Evaluation, Validation, and Selection
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
The paper elaborates some analytical opportunities for econophysics in the implementation of Basel II documents for banking. We see this chances by reviewing some methodologies proposed by the econophysicists in the three important aspects of risk management: the market risk, credit risk, and operational risk.
2006-06-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/896/1/MPRA_paper_896.pdf
Situngkir, Hokky and Surya, Yohanes (2006): Kerangka Kerja Ekonofisika dalam Basel II. Published in:
id
oai:mpra.ub.uni-muenchen.de:972
2019-09-27T17:05:09Z
7374617475733D707562
7375626A656374733D47:4732:473238
7375626A656374733D4F:4F31:4F3136
7375626A656374733D47:4731:473138
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/972/
Financial Developent and Economic Growth Nexus: Time Series Evidence from Middle Eastern and North African Countries
Abu-Bader, Suleiman
Abu-Qarn, Aamer
G28 - Government Policy and Regulation
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
G18 - Government Policy and Regulation
This paper examines the causal relationship between financial development and economic growth in five Middle Eastern and North African (MENA) countries for different periods ranging from 1960 to 2004, within a trivariate vector autoregressive (VAR) framework. We employ four different measures of financial development and apply Granger causality tests using the cointegration and vector error-correction (VEC) methodology. Our empirical results show weak support for a long-run relationship between financial development and economic growth, and for the hypothesis that finance leads growth. In cases where cointegration was detected, Granger causality was either bidirectional or it ran from output to financial development.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/972/1/MPRA_paper_972.pdf
Abu-Bader, Suleiman and Abu-Qarn, Aamer (2006): Financial Developent and Economic Growth Nexus: Time Series Evidence from Middle Eastern and North African Countries. Published in: Review of Development Economics , Vol. 12, No. 4 (2008): pp. 803-817.
en
oai:mpra.ub.uni-muenchen.de:1002
2019-09-28T18:44:54Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D43:4331:433133
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1002/
Discriminant Analysys of Default Risk
Aragon, Aker
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
C13 - Estimation: General
In this work discriminant analysis was applied, but firstly the variables were transformed in order to get normal distribution; and Component Analysis was applied in order to get uncorrelated factors.
2004-10-21
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1002/1/MPRA_paper_1002.pdf
Aragon, Aker (2004): Discriminant Analysys of Default Risk.
en
oai:mpra.ub.uni-muenchen.de:1113
2019-09-28T04:54:04Z
7374617475733D707562
7375626A656374733D47:4731:473138
7375626A656374733D4F:4F31:4F3136
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1113/
Financial Development and Economic Growth: Time Series Evidence from Egypt
Abu-Bader, Suleiman
Abu-Qarn, Aamer
G18 - Government Policy and Regulation
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
G28 - Government Policy and Regulation
This paper examines the causal relationship between financial development and economic growth in Egypt during the period 1960-2001 within a trivariate VAR setting. We employ four different measures of financial development and apply Granger causality tests using the cointegration and vector error correction methodology. Our results significantly support the view that financial development Granger-causes economic growth either through increasing investment efficiency or through increasing resources for investment. This finding suggests that the financial reforms launched in 1990 can explain the rebound in economic performance since then and that further deepening of the financial sector is an important instrument to stimulate saving/investment and therefore long-term economic growth.
2005
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1113/1/MPRA_paper_1113.pdf
Abu-Bader, Suleiman and Abu-Qarn, Aamer (2005): Financial Development and Economic Growth: Time Series Evidence from Egypt. Published in: Journal of Policy Modeling , Vol. 30, No. 5 (2008): pp. 887-898.
en
oai:mpra.ub.uni-muenchen.de:1167
2019-09-30T23:12:54Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1167/
Cooperativas financieras: revisión de experiencias internacionales (In Spanish)
Delfiner, Miguel
Perón, Silvana
Pailhé, Cristina
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This paper presents a comprehensive review on the activity of credit cooperatives in those countries where this sector has a long tradition and reached an important development. It describes the historical evolution in each country with special focus on the regulatory issues. The main differences between the cooperative financial sector and the traditional banking system are their corporative structure and the geographical area where these entities operate, which are a result of the market where they operate. We found an important development of a banking cooperative structure in those countries where the activity is significant, which is usually organized in federations and central entities operating with different products and
services. This pyramidal structure is mainly related with the need of reaching economies of scale and synergies that local entities could not obtain. The federations provide services to local entities and represent them before the authorities. Central units work close to federations, providing a broad range of services too. This kind of structure, called cooperative net, allows local entities to exploit their relative advantages in contrast to big banks, related to the knowledge and geographical proximity to clients, but without having to suffer disadvantages in the variety of services they can provide.
2006-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1167/1/MPRA_paper_1167.pdf
Delfiner, Miguel and Perón, Silvana and Pailhé, Cristina (2006): Cooperativas financieras: revisión de experiencias internacionales (In Spanish). Published in: Central Bank of Argentina Working Papers (September 2006)
es
oai:mpra.ub.uni-muenchen.de:1168
2019-09-28T04:37:04Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1168/
La administración del riesgo de liquidez en las entidades financieras: mejores prácticas internacionales y experiencias (In Spanish)
Delfiner, Miguel
Lippi, Claudia
Pailhé, Cristina
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This paper studies the best practices related to the management of liquidity risk in financial institutions from the viewpoint of the standards, as well as its treatment in a series of countries. Firstly it reviews the best practices suggested by the Basel Committee on Banking Supervision, the developments in European countries observed by the European Central Bank, and sound practices for liquidity risk management proposed in the supervision manuals of the US regulatory agencies. Secondly, it examines particular experiences of countries that apply policies for the management of liquidity risk, through their supervision manuals or their regulation. The paper also includes the experiences of some Latin-American countries that rely on a specific regulation of liquidity, together with the Argentine case. Although the importance of liquidity risk is well known, given the idiosyncratic characteristics shown in different banks, the organisms in charge of establishing the best practices regarding the subject prefer to give general principles that can be used as a guide in the management of the risk rather than to specify a quantitative regulation. Most of the analysed countries have adopted these recommendations, in some cases giving some freedom for the banks to apply internal methods, in others providing guidance for banks that don’t have advanced developments in the subject yet. In other countries, instead, quantitative regulations have been implemented.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1168/1/MPRA_paper_1168.pdf
Delfiner, Miguel and Lippi, Claudia and Pailhé, Cristina (2006): La administración del riesgo de liquidez en las entidades financieras: mejores prácticas internacionales y experiencias (In Spanish). Published in: Central Bank Working Papers (October 2006)
es
oai:mpra.ub.uni-muenchen.de:1169
2019-09-27T00:03:43Z
7374617475733D707562
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1169/
Sistemas de información para la administración del riesgo operativo: relevamiento en el sistema financiero argentino (In Spanish)
Pailhé, Cristina
G28 - Government Policy and Regulation
A survey of the information systems for the control, measurement and mitigation of operational risk (OR) was carried out, with a representative sample of banks of the
argentine financial system. The survey was structured in three sections: i. organizacional structure and resources for the management of OR; ii. data monitoring and back up and; iii. other aspects. With the results of the survey, four groups of financial institutions were distinguished with regard to OR information systems: i. those
that have assigned the function to a specific sector and have advanced in the registration of OR events and in the measurement of their impact, with the object estimating and mitigating the OR; ii. those in which the function is in charge of other areas related to the management of risks and/or audit, but that register important developments in their OR information systems; iii. those with a specific management unit responsible for the function, but that are in a preliminary stage as far as the measurement of OR and; iv. organizations that lack an area responsible for the administration and measurement of OR, but nevertheless register OR event data. A conclusion of the paper is that while most local banks are still in an initial stage regarding information systems for OR and in general lack an integral approach to OR management, their registries usualy contain data regarding OR events useful to perform estimations. The financial institutions also consider the measurement and control of OR as an important factor, since they consider that its consequences have huge cost although they can be mitigated.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1169/1/MPRA_paper_1169.pdf
Pailhé, Cristina (2006): Sistemas de información para la administración del riesgo operativo: relevamiento en el sistema financiero argentino (In Spanish). Published in: Central Bank Working Papers (October 2006)
es
oai:mpra.ub.uni-muenchen.de:1170
2019-09-27T22:52:15Z
7374617475733D707562
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1170/
Sistemas de información para la administración del riesgo de crédito: relevamiento en el sistema financiero argentino (In Spanish)
Pailhé, Cristina
G28 - Government Policy and Regulation
In order to analyse the current state of development and use of the information systems for credit risk in the local financial system, a survey was carried out with a sample of banks that voluntarily decided to take part in the exercise. In relation to the degree of advance of their information systems, the results show that 50% of the banks in the sample are highly developed in that regard (their systems are more than 85% complete), although they are less significant when measured by their assets in terms of the assets of financial system, since the largest banks are not so developed. The most frequently used tools are credit scorings (in particular those used in loan applications) for consumption credits (95% of consumption credit in the sample is originated, or will be in the near future, with application scorings) and ratings for corporate clients (83% of this credit is managed with these ratings). Also, it has been observed a significant coincidence in the variables used for granting credits and during their follow up. Nevertheless, major differences exist in the variables used regarding colaterals and recoveries.
2006-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1170/1/MPRA_paper_1170.pdf
Pailhé, Cristina (2006): Sistemas de información para la administración del riesgo de crédito: relevamiento en el sistema financiero argentino (In Spanish). Published in: Central Bank Working Papers (October 2006)
es
oai:mpra.ub.uni-muenchen.de:1244
2019-09-29T12:52:52Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1244/
The Basel II IRB approach revisited: do we use the correct model?
Varsanyi, Zoltan
G28 - Government Policy and Regulation
In this paper I question whether the risk weights in the
advanced (IRB) approach of the Basel 2 regulation are appropriate, on a
strictly theoretical ground. The major concern is that the model behind
the regulation considers defaults only at the end of the time horizon
for which capital is to be held - whereas defaults in the whole time
interval should be taken into consideration. This latter approach is
represented by a model that is different from the Basel model. It follows,
as I show, that the Basel model should be viewed just as a technical
tool to turn the expected value of the unconditional loss distribution
into a given percentile of the same distribution - making use of
conditional (on the systemic factor) default probabilities - and should not be
interpreted as describing even 'virtual' firms and asset values. More
importantly, I also show that a logical step in the theoretical
foundation of the model is missing which raises the question whether the risk
weights calculated with the model are indeed appropriate. Due to
difficulties in the calculation in the alternative approach of the percentiles
of the loss distribution no clean-cut answer is given in this paper.
2006-08
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1244/1/MPRA_paper_1244.pdf
Varsanyi, Zoltan (2006): The Basel II IRB approach revisited: do we use the correct model?
en
oai:mpra.ub.uni-muenchen.de:1283
2019-09-28T04:37:23Z
7374617475733D756E707562
7375626A656374733D47:4733:473333
7375626A656374733D47:4733:473332
7375626A656374733D47:4732:473234
7375626A656374733D44:4439:443932
7375626A656374733D44:4438:443832
7375626A656374733D43:4337:433733
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1283/
Debt-equity choice as a signal of profit profile over time
Miglo, Anton
G33 - Bankruptcy ; Liquidation
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies
D92 - Intertemporal Firm Choice, Investment, Capacity, and Financing
D82 - Asymmetric and Private Information ; Mechanism Design
C73 - Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games
This paper analyzes debt-equity choice for financing a two-stage investment when a firm’s insiders have private information about the firm’s expected earnings. When private information is one-dimensional (for example when short-term earnings are common knowledge while long-term earnings are private information) a separating equilibrium does not exist. When private information is two-dimensional a separating equilibrium may exist where firms with a higher rate of earnings growth issue debt and firms with a low rate of earnings growth issue equity. This provides new insights into the issue of different kinds of securities by different types of firms under asymmetric information as well as the link between debt-equity choice and operating performance.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1283/1/MPRA_paper_1283.pdf
Miglo, Anton (2006): Debt-equity choice as a signal of profit profile over time.
en
oai:mpra.ub.uni-muenchen.de:1337
2019-09-28T04:34:55Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1337/
Moral Hazard in the Diamond-Dybvig Model of Banking
Andolfatto, David
Nosal, Ed
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
We modify the Diamond-Dybvig [3] model studied in Green and Lin [5] to incorporate a self-interested banker who has a private record-keeping technology. A public record-keeping device does not exist. We find that there is a trade-off between sophisticated contracts that possess relatively good risk-sharing properties but allocate resources inefficiently for incentive reasons, and simple contracts that possess relatively poor risk-sharing properties but economize on the inefficient use of resources. While this trade-off depends on model parameters, we find that simple contracts prevail under a wide range of empirically plausible parameter values. Although moral hazard in banking may simplify the optimal structure of deposit liabilities, this simple structure does not enhance the prospect of bank runs.
2006-12-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1337/1/MPRA_paper_1337.pdf
Andolfatto, David and Nosal, Ed (2006): Moral Hazard in the Diamond-Dybvig Model of Banking.
en
oai:mpra.ub.uni-muenchen.de:1433
2019-09-27T04:23:30Z
7374617475733D756E707562
7375626A656374733D4C:4C32:4C3233
7375626A656374733D43:4332:433234
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1433/
Handling losses in translog profit models
Bos, J.W.B.
Koetter, M.
L23 - Organization of Production
C24 - Truncated and Censored Models ; Switching Regression Models ; Threshold Regression Models
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
In this paper, we compare standard approaches used to handle losses in logarithmic
stochastic profit frontier models with a simple novel approach. We discuss discriminatory
power, rank stability and precision of profit efficiency scores. Our new
method enhances rank stability and discriminatory power, and improves the precision
of profit efficiency scores.
2006-09-26
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1433/1/MPRA_paper_1433.pdf
Bos, J.W.B. and Koetter, M. (2006): Handling losses in translog profit models.
en
oai:mpra.ub.uni-muenchen.de:1436
2019-09-26T10:00:52Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3136
7375626A656374733D45:4534:453434
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1436/
Tunisian Financial System: a Growth Factor
Ben Fredj, Imene
Schalck, Christophe
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
E44 - Financial Markets and the Macroeconomy
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The relationship between financial development and economic growth were the subject of many
recent theorical and empirical works [Shepherd, Hasan and Klapper, 2004; Gylfason, 2004; Rioja
and Valev, 2003; Driffill, 2004; Haas, 2002; Carlin and Mayer, 2000]. These authors generally
focused their analysis of the link finance- growth on the mature financial systems. As the
Tunisian economy knew a long period of financial repression before starting the phases of
liberalization, it would be more judicious to start by McKinnon and Shaw’s theory of “financial
deepening” (1973) to then determinate the impact of Tunisian financial system development on
economic growth. Indeed, McKinnon and Shaw were the first authors to analyze positive effects
of financial liberalization policy on economic performance of less developed countries. To check
the relevance of this assumption in Tunisian’s context, we built a model inspired of the model of
King and Levine (1993) who by measuring instruments of economic and financial development
appears good indicators of Tunisian economy’s financiarisation. The results of the empirical
study on Tunisia stemming from causality tests within B-VAR framework nuance McKinnon and
Shaw’s theorical contribution. Reciprocal relationships are only finding between the ratio of
investment on the GDP and the loans granted to private and public sectors. The economic role
of State is highlighted, over the period of pre-reforms as well as during the recent time.
2004-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1436/1/MPRA_paper_1436.pdf
Ben Fredj, Imene and Schalck, Christophe (2004): Tunisian Financial System: a Growth Factor.
en
oai:mpra.ub.uni-muenchen.de:1510
2019-09-27T21:26:50Z
7374617475733D707562
7375626A656374733D4F:4F32
7375626A656374733D4F:4F32:4F3232
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1510/
Premio Nobel al microcredito
Reggiani, Tommaso
O2 - Development Planning and Policy
O22 - Project Analysis
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This article proposes to analyze Grameen Bank operational system and its own evolution, illustrating the reasons for which to Professor Yunus's mission has been conferred an important award as Nobel Peace Prize 2006, evidencing the values that support this economics theory and the innovations that microcredit brings to the understanding of the economics phenomena.
[For their efforts to create economic and social development from below, M. Yunus and Grameen Bank - Nobel Peace Prize 2006]
2006-12-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1510/1/MPRA_paper_1510.pdf
Reggiani, Tommaso (2006): Premio Nobel al microcredito. Published in: Aggiornamenti Sociali , Vol. Vol. 1, (1 December 2006): pp. 823-833.
it
oai:mpra.ub.uni-muenchen.de:1522
2019-10-01T18:16:47Z
7374617475733D707562
7375626A656374733D4F:4F32
7375626A656374733D49:4933:493331
7375626A656374733D52:5231:523133
7375626A656374733D49:4933:493338
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1522/
Il successo del microcredito
Reggiani, Tommaso
O2 - Development Planning and Policy
I31 - General Welfare, Well-Being
R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
I38 - Government Policy ; Provision and Effects of Welfare Programs
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Is possible to think the credit access like a human right? Eventually, to practice an approach of this type, is it sostenibile from the entrepreneurial and social point of view? These are the two challenges that the microcredit is defying.
2005-07-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1522/1/MPRA_paper_1522.pdf
Reggiani, Tommaso (2005): Il successo del microcredito. Published in: Appunti di cultura e politica , Vol. Vol. 4, (1 July 2005): pp. 33-37.
it
oai:mpra.ub.uni-muenchen.de:1526
2019-10-16T04:56:55Z
7374617475733D756E707562
7375626A656374733D52:5231:523131
7375626A656374733D4F:4F31:4F3138
7375626A656374733D4F:4F31:4F3137
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1526/
Grameen Bank II: una Possibile analisi in prospettiva relazionale
Reggiani, Tommaso
R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure
O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
After 25 years of effective work against the poverty, "the bank of poors", founded by Muhammd Yunus, has undertaken a new action to the innovation of the practical of microcredit, therefore to render it relationally still fecund and - I think - valuing. In this written, we will pass in review the main innovations - regarding the Grameen Classic System (GCS the original and traditional system of microcredit proposed) - concerning the products and the operating organization, in order to pass to an accurate examination of the implications that this evolution involves to an exquisitely relational level between the agents been involved, developing dynamics and nexuses that emerges inside of the relationship between the single person and the group and viceversa
2005-10-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1526/1/MPRA_paper_1526.pdf
Reggiani, Tommaso (2005): Grameen Bank II: una Possibile analisi in prospettiva relazionale.
it
oai:mpra.ub.uni-muenchen.de:1567
2019-09-30T01:46:58Z
7374617475733D707562
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1567/
Instrumentos híbridos de capitalizacion bancaria
Delfiner, Miguel
Pailhé, Cristina
G28 - Government Policy and Regulation
This paper reviews the markets and regulatory framework for hybrid financial instruments, with special focus on the recent regulatory changes allowing banks in Argentina to hold these instruments as regulatory capital. These assets refer to a wide family of instruments which have the structure of bonds, but incorporate equity-like features such as interest deferral, profound subordination, and long dated tenor. In 1998 the Basel Committee on Banking Supervision established minimum requirements and limits for these instruments to be included in Tier 1 capital. As a consequence markets for hybrids expanded considerably, and they were admitted in Canada, the United States and various Asian and European countries. In the Latin-American region they were admitted in Brazil and Mexico, and as from 2006 also in Argentina. In addition, these securities are described from the viewpoint of investors, focusing on risk and related costs, which contributes to the understanding of the regulation that applies to them.
2006-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1567/1/MPRA_paper_1567.pdf
Delfiner, Miguel and Pailhé, Cristina (2006): Instrumentos híbridos de capitalizacion bancaria. Published in: Central Bank Working Papers (December 2006)
es
oai:mpra.ub.uni-muenchen.de:1584
2019-10-02T05:06:05Z
7374617475733D756E707562
7375626A656374733D47:4732:473230
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1584/
Flaw in the fund skill/luck test method of Cuthbertson et al
Nuttall, John
G20 - General
Cuthbertson et al have recently described a method that is claimed to be able to identify individual fund managers who exhibited skill over a long period in the past. The only input to the process is monthly fund returns. We suggest that a critical step in the Cuthbertson method is flawed. This step involves the study of the order statistics of period average fund returns. We construct a simple model to which the Cuthbertson method should apply. Simulations with the model conclusively demonstrate that the method fails to detect many funds with skill, and also erroneously identifies many funds as having skill they do not possess.
2007-01-22
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1584/1/MPRA_paper_1584.pdf
Nuttall, John (2007): Flaw in the fund skill/luck test method of Cuthbertson et al.
en
oai:mpra.ub.uni-muenchen.de:1660
2019-09-28T15:52:37Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
7375626A656374733D43:4331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1660/
Rating philosophies: some clarifications
Varsanyi, Zoltan
G28 - Government Policy and Regulation
C1 - Econometric and Statistical Methods and Methodology: General
In this paper I try to give answers to some of the questions and problems that arise in relation to point in time (PIT) and through the cycle (TTC) rating philosophies. One of the most confusing of these is the definition of the two approaches that, as I argue, should be based on the scope of information behind the systems. Through a simple model I demonstrate that the results of quantitative analyses can be very sensitive to the definitions and, additionally, the stress concept applied. I analyze the role played by the rating philosophies in capital requirements calculations and stress tests, and touch on their implications on the pro-cyclicality of credit risk capital regulation.
2007-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1660/1/MPRA_paper_1660.pdf
Varsanyi, Zoltan (2007): Rating philosophies: some clarifications.
en
oai:mpra.ub.uni-muenchen.de:1711
2019-09-27T08:49:22Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1711/
Emerging Challenges in Indian Banking
Bhide, M G
Prasad, A
Ghosh, Saibal
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G28 - Government Policy and Regulation
The paper examines the process of banking sector reforms in India. It notes the beneficial impact
to the financial system consequent upon the reforms and highlights the current weaknesses in the banking
system. Against this background, the paper identifies the emerging challenges and discusses ways in
which they could be tackled.
In order to evaluate the efficacy of the prudential norms, we conduct a stress test of credit risk.
Our analysis reveals that, depending on the percentage of loans that graduate into non-performance and
the provisioning made, the immediate hit is a loss of interest income between Rs.21-55 billion. The
maximum level of additional provisioning that can support the present capital adequacy ratio is
determined.
2001
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1711/1/MPRA_paper_1711.pdf
Bhide, M G and Prasad, A and Ghosh, Saibal (2001): Emerging Challenges in Indian Banking.
en
oai:mpra.ub.uni-muenchen.de:1733
2019-09-27T10:14:40Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
7375626A656374733D43:4331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1733/
Rating philosophies: some clarifications
Varsanyi, Zoltan
G28 - Government Policy and Regulation
C1 - Econometric and Statistical Methods and Methodology: General
In this paper I try to give answers to some of the questions and problems that arise in relation to point in time (PIT) and through the cycle (TTC) rating philosophies. One of the most confusing of these is the definition of the two approaches that, as I argue, should be based on the scope of information behind the systems. Through a simple model I demonstrate that the results of quantitative analyses can be very sensitive to the definitions and, additionally, the stress concept applied. I analyze the role played by the rating philosophies in capital requirements calculations and stress tests, and touch on their implications on the pro-cyclicality of credit risk capital regulation.
2007-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1733/1/MPRA_paper_1733.pdf
Varsanyi, Zoltan (2007): Rating philosophies: some clarifications.
en
oai:mpra.ub.uni-muenchen.de:1780
2019-10-03T04:56:37Z
7374617475733D707562
7375626A656374733D47:4731:473138
7375626A656374733D47:4732
7375626A656374733D47:4731
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1780/
Towards a new Approach to Regulation and Supervision in the EU: Post-FSAP and Comitology
Gualandri, Elisabetta
Grasso, Alessandro Giovanni
G18 - Government Policy and Regulation
G2 - Financial Institutions and Services
G1 - General Financial Markets
The aim of this paper is to analyse the progress made in the process of European integration from two points of view: regulation and supervision.
We first briefly outline the main steps in the development of the Financial Services Action Plan - FSAP and the process of Comitology, defined by the Committee of Wise Men (Lamfalussy Committee).
We then provide an initial evaluation of the new regulatory system, with its merits and flaws: while the definition and completion of the FSAP has been an undoubted success, some aspects still have to be dealt with, several of them with problematical connotations, considered in the Financial Services Agenda 2005-2010 The transposition into national regulations of a complex body of wide-ranging standards is a difficult process in terms of both times and procedures, although the functioning of the Comitology structure has been met with general approval.
There is also the problem of a supervisory structure which retains its national basis, but onto which the output generated by the Committees envisaged by the Lamfalussy process is gradually being grafted, possibly leading towards a new framework of controls at a European level.
2006-03
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1780/1/MPRA_paper_1780.pdf
Gualandri, Elisabetta and Grasso, Alessandro Giovanni (2006): Towards a new Approach to Regulation and Supervision in the EU: Post-FSAP and Comitology. Published in: Revue bancaire et financière Bank- en Financiewezen No. 2006/3 (April 2006): pp. 157-175.
en
oai:mpra.ub.uni-muenchen.de:1803
2019-09-27T15:47:22Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1803/
Buenas practicas para la administracion del riesgo operacional en entidades financieras
Pailhé, Cristina
Delfiner, Miguel
Mangialavori, Ana
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G28 - Government Policy and Regulation
The Basel Committee on Banking Supervision (BCBS) has defined operational risk (OR) as the risk of loss resulting from inadequate or failed internal processes, people and systems from external events. This definition includes legal risk, but excludes strategic and reputational risk. Traditionally, individual OR management has been an important part of financial institutions’ efforts to avoid frauds and to keep the integrity of internal controls, among other aspects. Nevertheless, what is quite new is the fact of considering OR management as a comprehensive practice similar to the management of other risks (such as credit or market risk), and the measurement of losses due to OR events and the requirement of regulatory capital. Considering OR as an inclusive risk category, the BCBS has outlined a set of sound practices for the management and supervision of this risk. This document analyses those sound practices and their application in internationally active banks. A sample of Latin American countries which have published regulations on sound practices about this matter, is analyzed. It has to be emphasized that many countries in the region have established regulations in order to promote the adoption of OR management structures based on BCBS principles.
2007-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1803/1/MPRA_paper_1803.pdf
Pailhé, Cristina and Delfiner, Miguel and Mangialavori, Ana (2007): Buenas practicas para la administracion del riesgo operacional en entidades financieras.
es
oai:mpra.ub.uni-muenchen.de:1805
2019-09-27T23:38:21Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D46:4633:463334
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1805/
Revisiting the Level Playing Field: International Lending Responses to Divergences in Japanese Bank Capital Regulations from the Basel Accord
Chakraborty, Suparna
Allen, Linda
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
F34 - International Lending and Debt Problems
The 1998 passage of the Land Revaluation Law in Japan provided regulatory forbearance to Japanese banks in the form of a regulatory capital infusion. We test whether this divergence from international bank capital requirements had an impact on Japanese bank lending behavior. Because this natural experiment created an exogenous supply shock, we can utilize it to disentangle demand and supply effects in order to determine the impact on Japanese bank lending in both the U.S. and Japan. We find that the infusion of regulatory capital had no aggregate impact on Japanese bank lending in Japan, but it did change the allocation of loans. Well-capitalized Japanese banks shifted their lending from low margin, less capital intensive mortgage lending toward higher yielding, more capital intensive commercial loans. Moreover, we find evidence consistent with a shifting of Japanese bank lending activity away from U.S. lending(which is predominately real estate based) to domestic lending to fund manufacturing. Thus, we find that divergences from international capital standards have significant allocative effects on lending, as well as on bank profitability.
2007-02-13
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1805/1/MPRA_paper_1805.pdf
Chakraborty, Suparna and Allen, Linda (2007): Revisiting the Level Playing Field: International Lending Responses to Divergences in Japanese Bank Capital Regulations from the Basel Accord.
en
oai:mpra.ub.uni-muenchen.de:1873
2019-09-26T22:37:02Z
7374617475733D756E707562
7375626A656374733D44:4438:443832
7375626A656374733D47:4733:473331
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1873/
Credit risk management in banks: Hard information, soft Information and manipulation
Godbillon-Camus, Brigitte
Godlewski, Christophe
D82 - Asymmetric and Private Information ; Mechanism Design
G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The role of information’s processing in bank intermediation is a crucial input. The bank has access to different types of information in order to manage risk through capital allocation for Value at Risk coverage. Hard information, contained in balance sheet data and produced with credit scoring, is quantitative and verifiable. Soft information, produced within a bank relationship, is qualitative and non verifiable, therefore manipulable, but produces more precise estimation of the debtor’s quality. In this article, we investigate the impact of the information’s type on credit risk management in a principalagent framework with moral hazard with hidden information. The results show that access to soft information allows the banker to decrease the capital allocation for VaR coverage. We also show the existence of an incentive of the credit officer to manipulate the signal based on soft information that he produces. Therefore, we propose to implement an adequate incentive salary package which unables this manipulation. The comparison of the results from the two frameworks (information hard versus combination of hard and soft information) using simulations confirms that soft information gives an
advantage to the banker but requires particular organizational modifications within the bank, as it allows to reduce capital allocation for VaR coverage.
2005-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1873/1/MPRA_paper_1873.pdf
Godbillon-Camus, Brigitte and Godlewski, Christophe (2005): Credit risk management in banks: Hard information, soft Information and manipulation.
en
oai:mpra.ub.uni-muenchen.de:1959
2019-09-30T06:02:11Z
7374617475733D756E707562
7375626A656374733D44:4438
7375626A656374733D41:4131
7375626A656374733D45:4532:453232
7375626A656374733D47:4732:473232
7375626A656374733D43:4337
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1959/
Principle of uncertain future and utility
Harin, Alexander
D8 - Information, Knowledge, and Uncertainty
A1 - General Economics
E22 - Investment ; Capital ; Intangible Capital ; Capacity
G22 - Insurance ; Insurance Companies ; Actuarial Studies
C7 - Game Theory and Bargaining Theory
The principle of uncertain future: the probability of a future event contains a degree of (hidden) uncertainty. As a result, this uncertainty (in a sense, similar to vibrations, fluctuations) pushes the probability value back from the bounds to the middle of its range (from ~100% and ~0% to the middle probability values). In other words, the real values of high probabilities are lower than the preliminarily determined ones. Conversely, the real values of low probabilities are higher than the preliminarily determined ones. This result provides the uniform solution of a number of fundamental problems: the underweighting of high and the overweighting of low probabilities, the Allais paradox, risk aversion, loss aversion, the Ellsberg paradox, the equity premium puzzle, etc. The principle and its consequences can be applied in the fields of banking, investment, insurance, trade, industry, planning and forecasting. Explanations of the principle and examples of solution of three types of basic utility problems are provided.
2007-02-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1959/1/MPRA_paper_1959.pdf
Harin, Alexander (2007): Principle of uncertain future and utility.
en
oai:mpra.ub.uni-muenchen.de:1964
2019-09-26T08:30:50Z
7374617475733D756E707562
7375626A656374733D43:4335:433531
7375626A656374733D47:4732:473231
7375626A656374733D47:4731:473135
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1964/
Banking integration and co-movements in EU banks’ fragility
Vulpes, Giuseppe
Brasili, Andrea
C51 - Model Construction and Estimation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G15 - International Financial Markets
The aim of this paper is to verify whether and to which extent co-movements in EU banks’ risk, i.e. their degree of exposures of European banks to common shocks, have increased in time, following the completion of Monetary Union, the introduction of the euro and the process of European banking integration. To this end, we provide a measure of co-movements in bank risk by means of a dynamic factor model, which allows to decompose an indicator of bank fragility, the Distance-to-Default, into three main components: an EU-wide, a country-specific and a bank-level idiosyncratic component. Our results show the commonality in bank risk appears to have significantly increased since 1999, in particular if one concentrates on large banks. We also show that co-movements in EU banks’ fragility are only in part related to common macro shocks and that a banking system specific component at the EU-wide level appears relevant. This has obvious consequences in terms of systemic stability, but may also have far reaching policy implications with regards to the structuring of banking supervision in Europe
2006-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1964/1/MPRA_paper_1964.pdf
Vulpes, Giuseppe and Brasili, Andrea (2006): Banking integration and co-movements in EU banks’ fragility.
en
oai:mpra.ub.uni-muenchen.de:2011
2019-09-27T00:00:30Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D45:4535:453538
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2011/
Banking Sector Integration and Competition in CEMAC
Saab, Samer
Vacher, Jerome
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
E58 - Central Banks and Their Policies
This paper considers the extent of retail banking integration in the Communauté Economique et Monétaire d'Afrique Centrale (CEMAC) and the level of bank competition at the regional level. Using a mix of quantitative and qualitative indicators, the paper finds some evidence of price convergence in average interest rate spreads. However, this observed fact is not supported by an increase in cross-border flows in retail loans and deposits, and price convergence may merely reflect excess liquidity in the region. Other data also indicate that bank competition within the CEMAC as a region is limited, complementing the findings on integration. Addressing shortfalls in legal and regulatory frameworks, infrastructure, and markets would facilitate integration.
2007-01-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2011/1/MPRA_paper_2011.pdf
Saab, Samer and Vacher, Jerome (2007): Banking Sector Integration and Competition in CEMAC.
en
oai:mpra.ub.uni-muenchen.de:2029
2019-09-27T04:57:02Z
7374617475733D756E707562
7375626A656374733D47:4731:473138
7375626A656374733D47:4732:473234
7375626A656374733D47:4733:473330
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2029/
Does Misclassification of Equity Funds Exist? Evidence from Malaysia
Lau, Wee Yeap
Chan, Tze-Haw
G18 - Government Policy and Regulation
G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies
G30 - General
Applying the style analysis developed by Sharpe (1988, 1992), this paper investigates the classification of equity funds in Malaysia. A methodology for creating purified mutual fund style indexes is used to verify existing classifications. The paper concludes that an improper classification of funds would not only cause mismatch between investors objectives and funds’ profile, it also affects the process of income smoothing in the lifecycle of investors. Besides estimating the possible economic impact due to misclassification, this study highlights the importance of a proper classification system of equity funds in Malaysian context and its implication towards investor’s protection.
2004
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2029/1/MPRA_paper_2029.pdf
Lau, Wee Yeap and Chan, Tze-Haw (2004): Does Misclassification of Equity Funds Exist? Evidence from Malaysia.
en
oai:mpra.ub.uni-muenchen.de:2132
2019-09-26T22:42:55Z
7374617475733D707562
7375626A656374733D4C:4C32:4C3232
7375626A656374733D47:4732:473231
7375626A656374733D4C:4C38:4C3839
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2132/
Managing factoring in banking groups
Schwizer, Paola
Mattarocci, Gianluca
L22 - Firm Organization and Market Structure
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
L89 - Other
On the market for factoring services independent suppliers coexhist
with companies affiliated with banking groups. The last ones can be
oriented in their decision processes by the policies of their parent
company, usually a bank. They could also benefit from synergies among
the different units of the group.
The main benefits are linked to cost reduction, better skill-based
resources allocation and a higher amount of financial coverage. If such
interdependencies are found and developed, factors belonging to
banking groups could attain a competitive advantage towards
independent intermediaries.
To assess the impact of the group structure we have to evaluate the
degree of substitutability between factoring and other financial services
supplied by the group, the synergy effects that could arise in each step of
the production and delivery processes and eventually organizational
challenges faced by the group.
In our analysis we find evidence of complementarity among factoring
and other financial products, we consider the possibile sinergies in some
steps of the production process and we propose a methodology to assess
the level of group cohesion and the kind of control exercised by the
parent company.
2006-04
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2132/1/MPRA_paper_2132.pdf
Schwizer, Paola and Mattarocci, Gianluca (2006): Managing factoring in banking groups. Published in: Credifact discussion paper No. 1 (April 2006)
en
oai:mpra.ub.uni-muenchen.de:2325
2019-09-27T11:22:25Z
7374617475733D756E707562
7375626A656374733D4B:4B32:4B3232
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
7375626A656374733D47:4733:473334
7375626A656374733D47:4731:473138
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2325/
Corporate governance of banks: the current state of the debate.
Polo, Andrea
K22 - Business and Securities Law
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G18 - Government Policy and Regulation
Since banks are among the most important sources not only of finance but also of external governance for firms, the corporate governance of banks is a crucial factor for growth and development. Despite its importance, this topic has been explored only by a few studies. While some authors support, with different arguments in the course of time, the specificity of banks, other authors, among whom Ross Levine and his co-authors from the World Bank, question heavily the present banking regulatory framework. The debate on the corporate governance of banks has a direct bearing on the current discussions on the future of banking regulatory design: should the regulatory intervention be the most important corporate control mechanism in banking or should regulators focus on introducing incentives for appropriate market behaviour?
2007-03-19
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2325/1/MPRA_paper_2325.pdf
Polo, Andrea (2007): Corporate governance of banks: the current state of the debate.
en
oai:mpra.ub.uni-muenchen.de:2433
2019-09-27T15:27:57Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D4F:4F31:4F3136
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2433/
The agenda and relevance of recent research in Microfinance
Mersland, Roy
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
This paper studies recent research efforts in the field of microfinance. Two questions guide the study: What is the agenda of recent research efforts? And, for who is the research relevant? As for the agenda the “yin and yang” of microfinance; impact and sustainability, continue to influence most research efforts. The study illustrates that microfinance attracts mainly the interest of development researchers and journals. Accordingly the researchers seem mainly to interact with the donors’ and practitioners’ communities. The research produced seems to be relevant for them and less so for the governmental and banking communities. The paper concludes proposing the design of a new research agenda, this time in cooperation with the banking community.
2005-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2433/1/MPRA_paper_2433.pdf
Mersland, Roy (2005): The agenda and relevance of recent research in Microfinance.
en
oai:mpra.ub.uni-muenchen.de:2457
2019-09-26T10:37:20Z
7374617475733D756E707562
7375626A656374733D47:4733:473334
7375626A656374733D47:4732:473231
7375626A656374733D4A:4A32:4A3231
7375626A656374733D45:4534:453434
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2457/
The Labour Market Implications of Large-Scale Restructuring in the Banking Sector in Turkey
Kibritçioğlu, Aykut
G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
J21 - Labor Force and Employment, Size, and Structure
E44 - Financial Markets and the Macroeconomy
This paper is concerned with the causes, timing and effects of banking sector restructuring and financial crisis in Turkey. The main focus of the study, however, is on labour market implications of the banking crisis and banking reform in recent years. The paper is organised as follows. Section 2 presents a brief summary of the macroeconomic background to the latest banking sector crisis in Turkey. In section 3, the efforts of recent Turkish Governments towards restructuring and rehabilitation of the banking sector are considered. Then, following a statistical review of the main features of the Turkish banking sector, section 4 focuses on the labour market problems that can be linked to the Government's restructuring and rehabilitation programme in banking. Section 5 draws some lessons from this restructuring programme. Finally, section 6 concludes with some remarks on future prospects in the banking sector.
2006-05-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2457/1/MPRA_paper_2457.pdf
Kibritçioğlu, Aykut (2006): The Labour Market Implications of Large-Scale Restructuring in the Banking Sector in Turkey.
en
oai:mpra.ub.uni-muenchen.de:2460
2019-10-08T16:40:38Z
7374617475733D707562
7375626A656374733D47:4732:473231
7375626A656374733D4C:4C31:4C3133
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2460/
Oligopoly Model of a Debit Card Network
Manchev, Peter
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
L13 - Oligopoly and Other Imperfect Markets
The paper builds an oligopoly model of a debit card network.
It examines the competition between debit card issuers. We show that
there is an optimal pricing for the debit card network, which maximizes
all issuer's revenues. The paper also shows that establishing a link between
debit card networks averages the costs provided that there is no growth in
the customer's usage of the networks, resulting from the link.
2006-07-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2460/1/MPRA_paper_2460.pdf
Manchev, Peter (2006): Oligopoly Model of a Debit Card Network. Published in: Serdica Mathematical Journal , Vol. 33, (29 March 2007): pp. 35-46.
en
oai:mpra.ub.uni-muenchen.de:2487
2019-09-28T22:20:43Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D43:4332:433233
7375626A656374733D47:4732
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2487/
The Effect of Scale on Productivity of Turkish Banks in the Post-Crises Period: An Application of Data Envelopment Analysis
Chambers, Nurgul
Cifter, Atilla
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
C23 - Panel Data Models ; Spatio-temporal Models
G2 - Financial Institutions and Services
The purpose of this paper is to investigate the productivity of Turkish Banks according to the
effect of scale in the Post-Crises Period. The data used in this study covers the period from
2002:1 to 2004:3. We applied Data Envelopment Analysis (DEA), which is a non-parametric
linear programming-based technique for measuring relative performance of decision-making
units (DMUs). We calculated DEA as constant & variable return-to-scale based on output
oriented Malmquist Index. Although the scale effect can be measured with DEA scale efficiency
measurement, we used scale indicators as input variables in order to find out not only scale
efficiency but also scale affect directly. We applied DEA by using financial ratios
(Athanassopoulos and Ballantine, 1995; Yeh, 1996) and branch & personel number indicators.
This study uses five input variables as i) branch numbers, ii) personnel number per branch, iii)
share in total assets, iv) share in total loans, v) share in total deposits; and five output variables
as i) net profit-losses/total assets (ROA), ii) net profit-losses/total shareholders equity (ROE),
iii) net interest income/total assets, iv) net interest income/ total operating income, and v) noninterest
income/total assets. We find that difference in efficiency is mainly from technical
efficiency rather than scale efficiency in the post-crises period. The other finding reveals that
efficiency approximate between selected banks and supporting that advantage of scale
economies can be lost in Turkish banking. Overall, the results confirm that Turkish banking has
U shaped Scale Efficiency on selected profitability ratios. The application of this paper based
on other financial ratios with decreasing and increasing return-to-scale DEA is left to future
research.
2006-05-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2487/1/MPRA_paper_2487.pdf
Chambers, Nurgul and Cifter, Atilla (2006): The Effect of Scale on Productivity of Turkish Banks in the Post-Crises Period: An Application of Data Envelopment Analysis.
en
oai:mpra.ub.uni-muenchen.de:2508
2019-09-28T04:46:21Z
7374617475733D756E707562
7375626A656374733D4F:4F35:4F3530
7375626A656374733D47:4732:473230
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2508/
Does Collateral Help Mitigate Adverse Selection ? A Cross-Country Analysis
Weill, Laurent
Godlewski, Christophe
O50 - General
G20 - General
We investigate whether collateral helps to solve adverse selection problems. Theory
predicts a negative relationship between presence of collateral and risk premium, as
collateral constitutes a signalling instrument for the borrower to be charged with a lower
risk premium. However, bankers’ view and most empirical evidence contradict this
prediction in accordance with the observed-risk hypothesis. We provide new evidence
with loan-level data and country-level data for a sample of 5843 bank loans from 43
countries. We test whether the degree information asymmetries affects the link between
the presence of collateral and risk premium. We include five proxies for the degree of
information asymmetries, measuring opacity of financial information, trust, and
development. We find that a greater degree of information asymmetries reduces the
positive relationship between the presence of collateral and the risk premium. This
finding provides support for the adverse selection and observed-risk hypotheses, as both
hypotheses may be empirically validated depending of the degree of information
asymmetries in the country.
2006-11
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2508/1/MPRA_paper_2508.pdf
Weill, Laurent and Godlewski, Christophe (2006): Does Collateral Help Mitigate Adverse Selection ? A Cross-Country Analysis.
en
oai:mpra.ub.uni-muenchen.de:2654
2019-10-01T23:11:29Z
7374617475733D696E7072657373
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2654/
X-efficiency, scale economies, Technological Progress and Competition of Pakistani’s banks
Qayyum, Abdul
Khan, Sajawal
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This study aims at investigating empirically the x-efficiency, scale economies, and technologicalprogress of commercial banks operating in Pakistan. As banking sector efficiency is consider as a precondition for macroeconomic stability, monetary policy execution, and economic growth.We also make efficiency comparisons between the domestic and foreign banks and big banks.Our results indicate that the domestic banks operating in Pakistan are relatively less efficient than their foreign counterparts. The scale economies for small banks, especially foreign banks are higher. Results show also that market share of big five banks are declining over the period but average interest
spread shows fluctuations. The main conclusions that can be drawn from these results are that mergers are more likely to take place, especially in small banks. If the mergers do take place between small domestic banks and foreign banks, these will reduce cost due to scale economies as well as x-efficiency (because foreign banks are x-efficient relative to small domestic banks). Even if mergers do take place between small and big banks, cost will reduce with out conferring any monopolistic power to these banks. This
will also help in stability of the financial sector, which an important concern of the State Bank of Pakistan SBP). So the best policy option for SBP is to encourage mergers, while keeping a check on interest spread, so that the benefits from reduction in cost due mergers are passed on to depositors and borrowers.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2654/1/MPRA_paper_2654.pdf
Qayyum, Abdul and Khan, Sajawal (2006): X-efficiency, scale economies, Technological Progress and Competition of Pakistani’s banks. Forthcoming in: Pakistan Development Review , Vol. 45, No. 4
en
oai:mpra.ub.uni-muenchen.de:2655
2019-09-26T14:54:29Z
7374617475733D696E7072657373
7375626A656374733D47:4732:473238
7375626A656374733D4F:4F35:4F3533
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2655/
Trade Liberalization, Financial Sector Reforms and Growth
Khan, M. Arshad
Qayyum, Abdul
G28 - Government Policy and Regulation
O53 - Asia including Middle East
This paper empirically investigates the impact of trade and financial liberalization on economic growth in Pakistan using annual observations over the period 1961-2005. The analysis is based on the bound testing approach of cointegration advanced by Pesaran et al (2001). The empirical findings suggest that both trade and financial policies play an important role in enhancing growth in Pakistan in the long-run. However, the short-run response of real deposit rate and trade policy variable is very low, suggesting further acceleration of reform process. The feedback coefficient suggests a very slow rate of adjustment towards long-run equilibrium. The estimated short-run dynamics are stable as indicated by CUSUMQ test.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2655/1/MPRA_paper_2655.pdf
Khan, M. Arshad and Qayyum, Abdul (2006): Trade Liberalization, Financial Sector Reforms and Growth. Forthcoming in: Pakistan Development Review , Vol. 45, No. 4
en
oai:mpra.ub.uni-muenchen.de:2768
2019-09-29T04:37:49Z
7374617475733D707562
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
7375626A656374733D4E:4E32:4E3235
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2768/
Too Big to Fail: the Panic of 1927
Yokoyama, Kazuki
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
N25 - Asia including Middle East
This paper measures that the Bank of Japan adopted the too-big-to-fail doctrine against the panic of 1927. The results at this paper imply that supported banks had higher closure risk or occupied key positions in the local loan-markets. And this paper finds that the Bank of Japan bailed out solvent banks if they had political importance.
2007-04-17
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2768/1/MPRA_paper_2768.pdf
Yokoyama, Kazuki (2007): Too Big to Fail: the Panic of 1927. Published in: Discussion Papers in Economics No. 465
en
oai:mpra.ub.uni-muenchen.de:2821
2019-09-27T13:47:54Z
7374617475733D707562
7375626A656374733D47:4732
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2821/
Islamic banking at the crossroads: theory versus practice
Hasan, Zubair
G2 - Financial Institutions and Services
This paper examines the reasons for a widening gap between the conventional theory and current practice of Islamic banks. It finds fault at both the ends. ’No risk, no gain’ is inadequate as a general principle for organizing Islamic finance. It is also not always valid to say that Islam is averse to granting of a time value for money. The overuse of deferred contracts in Islamic finance threatens to violate the juristic principle of sadd al-dhara’i i.e. controlling the potential avenues for circumvention of the law. Some structural changes in Islamic financial arrangements are suggested to create a balance in the use of PLS and deferred contracts in Islamic banking.
2005
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2821/1/MPRA_paper_2821.pdf
Hasan, Zubair (2005): Islamic banking at the crossroads: theory versus practice. Published in: Rodney Wilson and Munawar Iqbal (Ed.): Islamic perspectives on wealth creation, Edinbourgh University Press, UK (2005): pp. 11-25.
en
oai:mpra.ub.uni-muenchen.de:2829
2019-10-01T05:49:05Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
7375626A656374733D4E:4E32:4E3235
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2829/
Too Big to Fail: the Panic of 1927
Yokoyama, Kazuki
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
N25 - Asia including Middle East
The purpose of this paper is to explore whether the Bank of Japan provided the special loans for insolvent banks against the panic of 1927. This paper uses a cross-sectional data set consisting of observations on 1364 ordinary banks. The logit model regression at this paper provides each bank’s estimated propensity to close. And the results of the tobit model regressions imply that supported banks had higher closure risk or occupied key positions in the local loan-markets and that the bank bailouts may have reflected political factors to some extent.
2007-04-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2829/1/MPRA_paper_2829.pdf
Yokoyama, Kazuki (2007): Too Big to Fail: the Panic of 1927.
en
oai:mpra.ub.uni-muenchen.de:2951
2019-09-28T17:23:36Z
7374617475733D707562
7375626A656374733D47:4732:473231
7375626A656374733D47:4732:473234
7375626A656374733D47:4732
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2951/
Mudaraba as a mode of finance in Islamic banking: theory, practice and problems
Hasan, Zubair
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies
G2 - Financial Institutions and Services
This paper seeks to analyze some of the aspects of mudarabah as a mode of financing business both from the theoretical and operational angles. At the theoretical plane the paper tackles the issue of the determination of the sharing of profit ratio for the outside financier in a competitive setting i.e. where the interest-free and interest-based systems operate side by side. It would show in a micro framework that the determination of this ratio would be a function of profit expectations, leverage ratio, rate of interest, and the risk factor. On the operational side, the paper analyzes the reasons of the unpopularity of the instrument not only with the financiers but also with the borrowers, and suggests some organizational arrangements to overcome the difficulties. The argument has a historical perspective.
2002
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2951/1/MPRA_paper_2951.pdf
Hasan, Zubair (2002): Mudaraba as a mode of finance in Islamic banking: theory, practice and problems. Published in: Journal of Middle East Business and Economics , Vol. 14, No. 2 (December 2002): pp. 41-53.
en
oai:mpra.ub.uni-muenchen.de:2977
2019-09-28T04:52:56Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2977/
Measuring efficiency of Islamic banks: criteria, methods, and social priorities
Hasan, Zubair
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This paper provides an appraisal of some of the researches conducted in recent years for evaluating the efficiency of Islamic banks. It is restricted to studies using parametric (SFA) and non-parametric (DEA) models. It finds that they leave much to be desired and the conclusions they arrive at are of suspect validity for a variety of reasons.
On a more important side, the criteria – cost or profit – they invariably use for measuring efficiency albeit valid miss the essence of what Islamic banking aims to achieve. These banks must of course pay their way but more than that they have to meet certain social objectives and priorities. The fulfillment of social responsibilities even at the expense of reduced profits has to be the main justification for their existence.
2004
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2977/1/MPRA_paper_2977.pdf
Hasan, Zubair (2004): Measuring efficiency of Islamic banks: criteria, methods, and social priorities. Published in: Islamic Economic Review , Vol. 8, No. 2 (2004): pp. 1-30.
en
oai:mpra.ub.uni-muenchen.de:2994
2019-09-26T22:09:53Z
7374617475733D707562
7375626A656374733D47:4731:473131
7375626A656374733D47:4732:473233
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2994/
Análise do Desempenho Recente de Fundos de Investimento no Brasil
Fonseca, Nelson
Bressan, Aureliano
Iquiapaza, Robert
Guerra, João
G11 - Portfolio Choice ; Investment Decisions
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
This study analyzes the performance of Brazilian Investment Funds between May 2001 and May 2006, using as a guideline the division in fixed-income funds and equity funds. The performance is evaluated in terms of risk and return, using Sharpe and Sortino indexes,
with the returns and volatilities being also analyzed through t and F tests. The results indicate that the two categories did not present any significant statistical difference in terms of the mean return in the period. However, differences in the variance along the period generated a better risk x return relation for the fixed income funds, a result that is associated with the high interest rates that were experienced during that period.
2007-04
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2994/1/MPRA_paper_2994.pdf
Fonseca, Nelson and Bressan, Aureliano and Iquiapaza, Robert and Guerra, João (2007): Análise do Desempenho Recente de Fundos de Investimento no Brasil. Published in: Contabilidade Vista & Revista , Vol. 1, No. 18 (March 2007): pp. 95-116.
pt
oai:mpra.ub.uni-muenchen.de:3004
2019-10-15T04:43:25Z
7374617475733D707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3004/
Comments on 'Efficiency of Islamic Banks in Malaysia'
Hasan, Zubair
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This is a comment on a paper presented as a discussant of the paper presented at an International conference on Islamic banking and finance held in Bahrain in 2005.
2005
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3004/1/MPRA_paper_3004.pdf
Hasan, Zubair (2005): Comments on 'Efficiency of Islamic Banks in Malaysia'. Published in: Munawar Iqbal and Ausaf Ahmad (Editors): Islamic Finance and Economic Development, Palgrave Macmillan UK, 2005 pp. 105-110 (2005): pp. 105-110.
en
oai:mpra.ub.uni-muenchen.de:3187
2019-09-27T11:15:17Z
7374617475733D756E707562
7375626A656374733D47:4730
7375626A656374733D45:4532:453231
7375626A656374733D47:4732:473230
7375626A656374733D43:4335:433531
7375626A656374733D47:4732:473231
7375626A656374733D47:4731:473131
7375626A656374733D45:4532:453234
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3187/
CONSUMER CREDIT DELINQUENCY AND BANKRUPTCY FORECASTING USING ADVANCED ECONOMETRC MODELING
Ji, Tingting
G0 - General
E21 - Consumption ; Saving ; Wealth
G20 - General
C51 - Model Construction and Estimation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G11 - Portfolio Choice ; Investment Decisions
E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity
This research paper empirically shows that unemployment is significant in determining both consumer bankruptcy filings and delinquency even after controlling for household demographics. Furthermore, I show that unemployment and the debt/wealth ratio also affect the choice of whether to file for bankruptcy under chapter 7 or chapter 13, after controlling for demographics. The paper then points out some of the implications the empirical results have for policy-makers and banking regulators.
2004-10-30
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3187/1/MPRA_paper_3187.pdf
Ji, Tingting (2004): CONSUMER CREDIT DELINQUENCY AND BANKRUPTCY FORECASTING USING ADVANCED ECONOMETRC MODELING.
en
oai:mpra.ub.uni-muenchen.de:3251
2019-09-27T01:34:27Z
7374617475733D707562
7375626A656374733D4F:4F33:4F3333
7375626A656374733D4F:4F31:4F3134
7375626A656374733D45:4534:453432
7375626A656374733D47:4732:473239
7375626A656374733D45:4535:453531
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3251/
E-commerce settles for established payment systems: Limited market potential for innovative payment systems
Heng, Stefan
O33 - Technological Change: Choices and Consequences ; Diffusion Processes
O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems
G29 - Other
E51 - Money Supply ; Credit ; Money Multipliers
Established payment systems play a dominant role also in B2C e-commerce. Innovative payment systems can only be a success here if they pay attention to the particular features of e-commerce, convey the worth of their value-adding unique selling proposition and enjoy the support of established e-shops or financial service providers. However, apart from rare cases the conventional payment systems leave little room for the innovative systems. This holds all the more since the conventional payment systems are responding to the new demands of B2C e-commerce.
2007-05-14
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3251/1/MPRA_paper_3251.pdf
Heng, Stefan (2007): E-commerce settles for established payment systems: Limited market potential for innovative payment systems. Published in: E-conomics No. 62 (14 May 2007)
en
oai:mpra.ub.uni-muenchen.de:3314
2019-09-27T00:56:22Z
7374617475733D756E707562
7375626A656374733D47:4732:473233
7375626A656374733D47:4731:473138
7375626A656374733D47:4731:473131
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3314/
Appropriateness of Default Investment Options in Defined Contribution Plans: The Australian Evidence
Basu, Anup
Drew, Michael
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
G18 - Government Policy and Regulation
G11 - Portfolio Choice ; Investment Decisions
For participants in defined contribution (DC) plans who refrain from exercising investment choice, plan contributions are invested following the default investment option of their respective plans. Since default investment options of different plans vary widely in terms of their benchmark asset allocation, the most important determinant of investment performance, participants enrolled in these options face significantly different wealth outcomes at retirement. This paper simulates the terminal wealth outcomes under different static asset allocation strategies to evaluate their relative appeal as default investment choice in DC plans. We find that strategies with moderate allocation to stocks are consistently outperformed in terms of upside potential of exceeding the participant’s wealth accumulation target at retirement as well as downside risk of falling below that target outcome by very aggressive strategies whose allocation to stocks approach 100%. The risk of extremely adverse wealth outcomes for plan participants also does not appear to be very sensitive to asset allocation. Our evidence strongly suggests the appropriateness of strategies heavily tilted towards stocks to be nominated as default investment options in DC plans unless plan providers emphasize predictability of wealth outcomes over adequacy of retirement wealth.
2006-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3314/1/MPRA_paper_3314.pdf
Basu, Anup and Drew, Michael (2006): Appropriateness of Default Investment Options in Defined Contribution Plans: The Australian Evidence.
en
oai:mpra.ub.uni-muenchen.de:3405
2019-10-01T00:28:48Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3132
7375626A656374733D4F:4F32:4F3230
7375626A656374733D4F:4F31:4F3135
7375626A656374733D4F:4F31:4F3137
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3405/
Borrower Empowerment and Savings: A Two-stage Micro-finance Scheme
Roy Chowdhury, Prabal
O12 - Microeconomic Analyses of Economic Development
O20 - General
O15 - Human Resources ; Human Development ; Income Distribution ; Migration
O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
We consider group-lending with joint
liability
where the provision of loans is conditional on prior savings.
In a dynamic model with moral hazard and endogenous
group-formation, we examine the effect of such schemes on the
allocation of loans between strongly and weakly empowered borrowers.
We find that he savings requirement may help to screen out weak
borrowers. Further, as long as the borrowers are not too similar, it
increases the incentive for ``positive assortative matching (PAM).''
For intermediate interest rates, group-lending leads to ``PAM'' with
a screening out of weak borrowers. It is thus feasible, whereas
individual lending, which does not allow for such screening, is not.
Interestingly, for relatively high interest rates, individual
lending may dominate group-lending.
2007-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3405/1/MPRA_paper_3405.pdf
Roy Chowdhury, Prabal (2007): Borrower Empowerment and Savings: A Two-stage Micro-finance Scheme.
en
oai:mpra.ub.uni-muenchen.de:3423
2019-09-26T14:58:56Z
7374617475733D756E707562
7375626A656374733D4E:4E32:4E3235
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3423/
Too Big to Fail: the Panic of 1927
Yokoyama, Kazuki
N25 - Asia including Middle East
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The purpose of this paper is to explore whether the Bank of Japan provided the special loans for insolvent banks against the panic of 1927. This paper uses a cross-sectional data set consisting of observations on 1364 ordinary banks. The logit model regression at this paper provides each bank’s estimated propensity to close. And the results of the tobit model regressions imply that supported banks had higher closure risk
or occupied key positions in the local loan-markets and that the bank
bailouts may have reflected political factors to some extent.
2007-04-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3423/1/MPRA_paper_3423.pdf
Yokoyama, Kazuki (2007): Too Big to Fail: the Panic of 1927.
en
oai:mpra.ub.uni-muenchen.de:3493
2019-09-27T03:42:27Z
7374617475733D756E707562
7375626A656374733D47:4732:473230
7375626A656374733D47:4730
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3493/
The tail risks of FX return distributions: a comparison of the returns associated with limit orders and market orders
Cotter, John
Dowd, Kevin
G20 - General
G0 - General
This paper measures and compares the tail risks of limit and market orders using Extreme
Value Theory. The analysis examines realised tail outcomes using the Dealing 2000-2
electronic broking system based on completed transactions rather than the more common
analysis of indicative quotes. In general, limit and market orders exhibit broadly similar
tail behaviour, but limit orders have significantly heavier tails and larger tail quantiles
than market orders.
2007
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3493/1/MPRA_paper_3493.pdf
Cotter, John and Dowd, Kevin (2007): The tail risks of FX return distributions: a comparison of the returns associated with limit orders and market orders.
en
oai:mpra.ub.uni-muenchen.de:3498
2019-09-28T04:32:58Z
7374617475733D756E707562
7375626A656374733D47:4732:473233
7375626A656374733D47:4730
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3498/
Financial Risks and the Pension Protection Fund: Can it Survive Them?
Cotter, John
Blake, David
Dowd, Kevin
G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
G0 - General
This paper discusses the financial risks faced by the UK Pension Protection Fund
(PPF) and what, if anything, it can do about them. It draws lessons from the
regulatory regimes under which other financial institutions, such as banks and
insurance companies, operate and asks why pension funds are treated differently. It
also reviews the experience with other government-sponsored insurance schemes,
such as the US Pension Benefit Guaranty Corporation, upon which the PPF is
modelled. We conclude that the PPF will live under the permanent risk of insolvency
as a consequence of the moral hazard, adverse selection, and, especially, systemic
risks that it faces.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3498/1/MPRA_paper_3498.pdf
Cotter, John and Blake, David and Dowd, Kevin (2006): Financial Risks and the Pension Protection Fund: Can it Survive Them?
en
oai:mpra.ub.uni-muenchen.de:3506
2019-09-28T03:28:19Z
7374617475733D756E707562
7375626A656374733D47:4731:473135
7375626A656374733D47:4732:473230
7375626A656374733D47:4731:473131
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3506/
Implied correlation from VaR
Cotter, John
Longin, Francois
G15 - International Financial Markets
G20 - General
G11 - Portfolio Choice ; Investment Decisions
Most of the methods used by financial institutions to implement valueat-
risk models are based on the multivariate Gaussian distribution with a
constant correlation matrix. In this paper we use VaR calculation in a
reverse way to imply the correlation between asset price changes. The
distribution of implied correlation under normality is also studied in
order to take into account any bias and sampling error. Empirical results
for US and UK equity markets show that implied correlation is not
constant but tends to be higher for long positions than for short
positions. This result is statistically significant and can be interpreted as
departure from normality. Our test provides a new way – by focusing the
tail dependence - to assess the model risk associated with quantitative
methods based on normality in asset management and risk management
areas.
2006
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3506/1/MPRA_paper_3506.pdf
Cotter, John and Longin, Francois (2006): Implied correlation from VaR.
en
oai:mpra.ub.uni-muenchen.de:3582
2019-09-27T02:50:55Z
7374617475733D756E707562
7375626A656374733D47:4733:473333
7375626A656374733D43:4335:433533
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3582/
Dynamic Factor analysis of industry sector default rates and implication for Portfolio Credit Risk Modelling
Cipollini, Andrea
Missaglia, Giuseppe
G33 - Bankruptcy ; Liquidation
C53 - Forecasting and Prediction Methods ; Simulation Methods
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
In this paper we use a reduced form model for the analysis of Portfolio Credit Risk. For this purpose, we fit a Dynamic Factor model, DF, to a large dataset of default rates proxies and macro-variables for Italy. Multi step ahead density and probability forecasts are obtained by employing both the direct and indirect method of prediction together with stochastic simulation of the DF model. We, first, find that the direct method is the best performer regarding the out of sample projection of financial distressful events. In a second stage of the analysis, the direct method of forecasting through principal components is shown to provide the least sensitive measures of Portfolio Credit Risk to various multifactor model specifications. Finally, the simulation results suggest that the benefits in terms of credit risk diversification tend to diminish with an increasing number of factors, especially when using the indirect method of forecasting.
2007-05-30
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3582/1/MPRA_paper_3582.pdf
Cipollini, Andrea and Missaglia, Giuseppe (2007): Dynamic Factor analysis of industry sector default rates and implication for Portfolio Credit Risk Modelling.
en
oai:mpra.ub.uni-muenchen.de:3658
2019-10-02T04:51:43Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D43:4331:433133
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3658/
Reconsidering the logit: the risk of individual names
Zoltan, Varsanyi
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
C13 - Estimation: General
In this paper I examine whether the probability of default (PD) of an obligor estimated by a logit model can really be considered a good estimate of the true PD. The general answer seems to be no, although in this paper I don’t carry out a large scale (simulation) analysis. With a simple set-up I show that the logit has a high potential of ‘mixing’ probabilities, that is, as signing similar scores to obligors with quite different PDs. I demonstrate how this situation is reflected in the convexity that can often be observed in empirical ROC curves. I think that the results have important implications in the pricing of individual exposures and raise the question of the stability of estimated PDs when the value-combinations of the risk factors underlying the portfolio change. This latter issue also relates to capital calculation, model building and validation as required by the new Basel capital rules. For example, because of the concavity of the risk weight formula a bank may want to avoid PD mixing thereby reducing its capital requirement.
2007-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3658/1/MPRA_paper_3658.pdf
Zoltan, Varsanyi (2007): Reconsidering the logit: the risk of individual names.
en
oai:mpra.ub.uni-muenchen.de:3840
2019-09-26T08:05:55Z
7374617475733D707562
7375626A656374733D43:4333:433333
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3840/
Basel II and bank lending behavior: Some likely implications for monetary policy in India
Nachane, Dilip
Ghosh, Saibal
Ray, Partha
C33 - Panel Data Models ; Spatio-temporal Models
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy in influencing bank lending. This will, however, depend on a number of factors, including whether banks are constrained by the risk-based capital standards, the credit quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model is empirically explored using data on Indian commercial banks for the period 1996-2004. The analysis indicates that the effect of a contractionary monetary policy will be significantly mitigated provided the proportion of unconstrained to constrained banks in the system is significantly high.
2006-03-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3840/1/MPRA_paper_3840.pdf
Nachane, Dilip and Ghosh, Saibal and Ray, Partha (2006): Basel II and bank lending behavior: Some likely implications for monetary policy in India. Published in: Economic and Political Weekly , Vol. 41, No. 11 (24 March 2006): pp. 1053-1058.
en
oai:mpra.ub.uni-muenchen.de:3841
2019-09-26T09:28:31Z
7374617475733D707562
7375626A656374733D47:4732:473231
7375626A656374733D45:4535:453532
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3841/
Basel II and bank lending behavior: some likely implications for monetary policy
Nachane, Dilip
Ghosh, Saibal
Ray, Partha
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
E52 - Monetary Policy
The new Basel accord is slated to come into effect in India around 2007 raising the question
of how the revised standards will influence bank behaviour. Using a simple theoretical
model, it is shown that the revised accord will result in asymmetric differences in the efficacy
of monetary policy in influencing bank lending. This will, however, depend on a number of
factors, including whether banks are constrained by the risk-based capital standards, the credit
quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model
is empirically explored using data on Indian commercial banks for the period 1996-2004.
The analysis indicates that the effect of a contractionary monetary policy will be significantly
mitigated provided the proportion of unconstrained to constrained
banks in the system is significantly high.
2006-03-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3841/1/MPRA_paper_3841.pdf
Nachane, Dilip and Ghosh, Saibal and Ray, Partha (2006): Basel II and bank lending behavior: some likely implications for monetary policy. Published in: Economic and Political Weekly , Vol. 41, (18 March 2006): pp. 1053-1058.
en
oai:mpra.ub.uni-muenchen.de:3887
2019-09-26T08:30:11Z
7374617475733D756E707562
7375626A656374733D47:4733:473332
7375626A656374733D47:4732:473231
7375626A656374733D47:4733:473330
7375626A656374733D4F:4F31:4F3136
7375626A656374733D4A:4A32:4A3233
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3887/
Performance and corporate governance in microfinance institutions
Mersland, Roy
Strøm, Reidar Øystein
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G30 - General
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
J23 - Labor Demand
We trace the relationship between firm performance and corporate governance in microfinance institutions (MFI) utilising a self constructed global data set on MFIs, collected from third-party rating agencies. We study the effect of board characteristics, ownership type, competition and regulation on the MFI's outreach to poor clients and its financial performance. The results show that split roles of CEO and chairman, a female CEO, and competition are important explanations. Larger board size decreases the average loan size while individual guaranteed loan increases it. No difference between nonprofit organisations and shareholder firms in financial performance and outreach is found.
2007-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3887/1/MPRA_paper_3887.pdf
Mersland, Roy and Strøm, Reidar Øystein (2007): Performance and corporate governance in microfinance institutions.
en
oai:mpra.ub.uni-muenchen.de:3888
2019-09-27T05:11:22Z
7374617475733D756E707562
7375626A656374733D47:4733:473332
7375626A656374733D47:4732:473231
7375626A656374733D47:4733:473330
7375626A656374733D4F:4F31:4F3136
7375626A656374733D4A:4A32:4A3233
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3888/
Performance and corporate governance in microfinance institutions
Mersland, Roy
Strøm, Reidar Øystein
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
G30 - General
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
J23 - Labor Demand
We trace the relationship between firm performance and corporate governance in microfinance institutions (MFI) utilising a self constructed global data set on MFIs, collected from third-party rating agencies. We study the effect of board characteristics, ownership type, competition and regulation on the MFI's outreach to poor clients and its financial performance. The results show that split roles of CEO and chairman, a female CEO, and competition are important explanations. Larger board size decreases the average loan size while individual guaranteed loan increases it. No difference between nonprofit organisations and shareholder firms in financial performance and outreach is found.
2007-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3888/1/MPRA_paper_3888.pdf
Mersland, Roy and Strøm, Reidar Øystein (2007): Performance and corporate governance in microfinance institutions.
en
oai:mpra.ub.uni-muenchen.de:3891
2019-09-28T00:46:32Z
7374617475733D707562
7375626A656374733D47:4731:473130
7375626A656374733D47:4732:473230
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3891/
Conflictos de Interés en Servicios Financieros: Taxonomía y Mecanismos de Control Regulatorio
Lazen, Vicente
Eguiluz, Cristian
G10 - General
G20 - General
This article intends to serve as a practical tool for the design of a regulatory framework in a context of conflicts of interest in the activities capital markets institutions. In the first part of this article those situations of conflicts of interest are identified, described and classified. Next, alternatives to efficiently deal with conflicts of interest are analyzed. For this, in the first place we detail a set of measures that allow to control these conflicts, or to stimulate its resolution under a suitable way, in order to obtain the best social benefit. The analysis follows with the criteria that allow deciding the use of the appropriate mitigation alternative or regulatory tool, according to the characteristics of the conflict of interest and the circumstances that surrounds it.
Este artículo pretende servir como herramienta práctica para el diseño de un marco regulatorio en un contexto de conflictos de interés de las actividades realizadas en el mercado de capitales. En la primera parte de este artículo se identifican, describen y clasifican aquellas situaciones de conflictos de interés. Posteriormente, se analizan las alternativas que permiten afrontar de manera eficiente los conflictos de interés. Para esto, en primer lugar se detallan un conjunto de medidas que permiten controlar dichos conflictos, o bien incentivar su resolución de manera adecuada, para lograr el mejor beneficio social. Finalmente, se analizan los criterios que permiten decidir el uso de la alternativa apropiada de mitigación según las características que presenta el conflicto de interés y las circunstancias que lo rodea.
2006-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3891/1/MPRA_paper_3891.pdf
Lazen, Vicente and Eguiluz, Cristian (2006): Conflictos de Interés en Servicios Financieros: Taxonomía y Mecanismos de Control Regulatorio. Published in: Serie Documentos de Trabajo. Superintendencia de Valores y Seguros- Chile No. N°6 (December 2006)
es
oai:mpra.ub.uni-muenchen.de:3909
2019-10-02T18:50:08Z
7374617475733D756E707562
7375626A656374733D43:4333:433333
7375626A656374733D47:4732:473231
7375626A656374733D43:4333:433335
7375626A656374733D47:4732:473238
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3909/
Moral hazard in a voluntary deposit insurance system: Revisited
Camacho-Gutiérrez, Pablo
González-Cantú, Vanessa M.
C33 - Panel Data Models ; Spatio-temporal Models
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
C35 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions
G28 - Government Policy and Regulation
This paper extends Wheelock and Kumbhakar’s (1995) test for moral hazard in the Kansas deposit insurance system (1910-1920). This paper tests and finds evidence of omitted bank-specific effects. Estimates in Wheelock and Kumbhakar (1995), as a result, are biased. This paper introduces unobserved individual heterogeneity to the test for moral hazard, corrects their estimates, and finds more evidence of moral hazard in the Kansas deposit insurance system.
2007-05-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3909/1/MPRA_paper_3909.pdf
Camacho-Gutiérrez, Pablo and González-Cantú, Vanessa M. (2007): Moral hazard in a voluntary deposit insurance system: Revisited.
en
oai:mpra.ub.uni-muenchen.de:3921
2019-09-27T16:54:25Z
7374617475733D707562
7375626A656374733D47:4731:473138
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3921/
Restructuring of Financial Sector in Pakistan
Khan, Muhammad Arshad
G18 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Like many other developing countries Pakistan also undertook the process of financial restructuring through reforms in early 1990s to establish a more market-based system of financial intermediation and government financing, conduct the monetary policy more efficiently through greater reliance on indirect instruments and increase the contribution to the rapid development of the stock markets. These reforms were primarily designed to correct the dissertations implicit in the administrated structure of rates of returns on various financial instruments, to abolish the directed and subsidized schemes, to allow free entry of private banks in the financial sector in order to enhance the competition and efficiency in the financial sector and to strengthen the State Bank of Pakistan. This study discus the financial restructuring strategy and the stages it has passed over time and history of financial reforms carried out so far in Pakistan.
2002-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3921/1/MPRA_paper_3921.pdf
Khan, Muhammad Arshad (2002): Restructuring of Financial Sector in Pakistan. Published in: Journal of The Institute of Bankers Pakistan , Vol. 70, No. 3 (July 2003): pp. 49-68.
en
oai:mpra.ub.uni-muenchen.de:3922
2019-09-28T05:51:31Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3922/
Strategies to Resurrect Rural Credit Delivery System in India
Shah, Deepak
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
The RFIs operating in Maharashtra have not only shown slower growth in their loan advances and other operational indicators during the period between 1991 and 2000 but also poor performance thereafter. The credit cooperatives in particular have shown significantly high NPAs in Maharashtra. In Maharashtra, Vidarbha region not only shows very low magnitudes of credit flow through cooperatives but also decline in share of loan for cotton crop vis-à-vis other field crops. One of the adverse effects of slowing down in loan advances for cotton crop is seen on the farming community of this region where a significant number of cotton growers have committed suicide either due to lack of loan advances to them or because of pressure created by various financial institutions in terms of recovery of loan despite crop failure. With a view to revive the agricultural credit delivery system, there is need to tackle twin problems facing the system, viz., growing NPAs with falling CD ratios and poor recovery performance of RFIs, aside from adopting innovative approaches like linking of SHGs and NGOs with mainstream financial institutions. In brief, the focus of rural credit delivery system should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development.
2007-07-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3922/1/MPRA_paper_3922.pdf
Shah, Deepak (2007): Strategies to Resurrect Rural Credit Delivery System in India.
en
oai:mpra.ub.uni-muenchen.de:3966
2019-09-26T23:44:42Z
7374617475733D756E707562
7375626A656374733D47:4733:473332
7375626A656374733D47:4732:473231
7375626A656374733D4F:4F31:4F3136
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3966/
Performance and trade-offs in microfinance organizations - does ownership matter?
Mersland, Roy
Strøm, Reidar Øystein
G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
Policy advocates argue the case for the transformation of non-government Microfinance Organizations (MFOs) into shareholder owned firms. The argument is that this will bring about superior performance. This paper investigates whether the superiority of shareholder owned MFOs is empirically supported. The findings indicate that the difference between shareholder owned MFOs and non-government MFOs is minimal. Our results contradict established paradigms and policy guidelines in the industry. However, the results are not necessarily surprising since ownership theories do not predict a clear preference for one type of ownership in the microfinance market. Furthermore, findings in general banking markets as well as the pro-poor banking history indicate that mutual and non-profit ownership can compete successfully with investor ownership.
2007-01-30
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3966/1/MPRA_paper_3966.pdf
Mersland, Roy and Strøm, Reidar Øystein (2007): Performance and trade-offs in microfinance organizations - does ownership matter?
en
oai:mpra.ub.uni-muenchen.de:4020
2019-10-05T16:34:41Z
7374617475733D756E707562
7375626A656374733D47:4732:473231
7375626A656374733D43:4332:433235
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4020/
The design of bank loan syndicates in Emerging Markets Economies
Godlewski, Christophe
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
C25 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions ; Probabilities
We empirically explore the influence of loan characteristics, banking and financial structure, and regulatory and institutional factors on the design of 10,930 bank loan syndicates in emerging market economies from 1990 to 2006. Our results show that the structure of syndicates is adapted to enhance monitoring of the borrower and to increase the efficiency of re-contracting process in case of borrower's distress. Main syndication motives, such as loans portfolio diversification, regulatory pressure and management costs reduction, influence syndicate design in emerging markets economies.
2007-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4020/1/MPRA_paper_4020.pdf
Godlewski, Christophe (2007): The design of bank loan syndicates in Emerging Markets Economies.
en
oai:mpra.ub.uni-muenchen.de:4077
2019-09-28T08:26:40Z
7374617475733D707562
7375626A656374733D47:4732:473231
7375626A656374733D4F:4F31:4F3136
7375626A656374733D4F:4F34
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4077/
Financial Sector Deepening and Economic Growth: Evidence from Turkey
Ardic, Oya Pinar
Damar, H. Evren
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
O4 - Economic Growth and Aggregate Productivity
This paper analyzes the effects of financial sector deepening on economic growth
using a province-level data set for 1996-2001 on Turkey. This period is associated with
a weakly regulated and relatively unsupervised expansion of the banking sector which
led to the 2001 financial crisis. Contrary to findings in the previous literature, our results indicate a strong negative relationship between financial deepening-both public and private-and economic growth. In light of the developments in the period of analysis,
this result is not surprising, as the main function of the banking sector at that time
was to provide financing for the Turkish Treasury, which channeled these funds to the
government-albeit mainly for rent distribution purposes. However, it is important to
note that the growth of private banking sector needs yet to be examined separately,
as government ownership of banks may distort the development of the banking sector
as a whole. Yet, it is possible to conclude that financial development may not always
contribute to economic growth, and the conditions under which such a contribution
takes place should be investigated further.
2006-11
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4077/1/MPRA_paper_4077.pdf
Ardic, Oya Pinar and Damar, H. Evren (2006): Financial Sector Deepening and Economic Growth: Evidence from Turkey. Published in: Topics in Middle Eastern and North African Economies (MEEA Online Journal) , Vol. 9, (2007)
en
oai:mpra.ub.uni-muenchen.de:4121
2019-10-02T06:00:19Z
7374617475733D756E707562
7375626A656374733D45:4535
7375626A656374733D46:4634
7375626A656374733D47:4732
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4121/
Banking and Economic Development in Morocco
Tatom, John
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
F4 - Macroeconomic Aspects of International Trade and Finance
G2 - Financial Institutions and Services
In Morocco, as elsewhere, banking is the principal financial sector it has the potential to contribute the most or to most severely retard economic development. But the banking industry’s potential performance is constrained by the monetary policies of the central bank. This paper reviews some major factors favoring a strong banking industry that boosts development, as well as the major obstacles that have or continue to face the industry and the economy. The Moroccan central bank, Bank al’Magrib, has been very successful in providing a strong financial environment for the nation. Within this environment, indeed, perhaps because of it, the nation’s banking sector is performing very well. One of the main recent achievements has been the near elimination of so-called “specialized banks,” government institutions set up to provide directed credit to key sectors of the economy. These banks were a major drag on the private financial sector, boosting risk and raising costs, lowering returns to private banks and reducing the their supply of credit and raising the cost of credit for the private sector. These institutions have largely been merged into private firms and their special status eliminated. Fiscal policy continues to remain a major barrier to private capital formation and bank lending. Unfortunately government policy continues to favor running large budget deficits, continuing the waste of scarce national resources. In addition, very high marginal tax rates kick in at very low levels of income, penalizing saving and investment and risk-taking activity.
2005-11-15
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4121/1/MPRA_paper_4121.pdf
Tatom, John (2005): Banking and Economic Development in Morocco.
en
oai:mpra.ub.uni-muenchen.de:4266
2019-09-29T04:59:51Z
7374617475733D707562
7375626A656374733D47:4732:473238
7375626A656374733D48:4833:483331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4266/
Targeting the unbanked-financial literacy's magic bullet?
Tatom, Jojn
Godsted, David
G28 - Government Policy and Regulation
H31 - Household
Adult financial illiteracy is a major problem in the US and elsewhere. Financial fraud and poor performance in managing personal finances go hand in hand. The nation’s bankruptcy and home mortgage foreclosure rates rate have continued to climb despite improving employment opportunities, rapid growth in the nation’s income and bankruptcy reform aimed at making bankruptcy filing less necessary and more difficult. America’s personal savings rate hovers in negative territory. As new financial services and technologies proliferate, many low income persons are being left in the dust, often unable to participate in cost saving or high-return opportunities, or they are offered new services only on very unfavorable terms. At the same time, lack of financial and technological safeguards has made it easier to exploit all individuals through identity theft, mortgage fraud, or legal, but financially dubious, new products. In some cases, new technology is being forced on low-income individuals by a coordinated federal push for electronic payment of benefits. While an imposition on the otherwise unbanked, increasing access to financial institutions may provide a useful introduction to a higher level of financial information and literacy, as well as enhancing their confidence and ability in financial management.
2006-11-14
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4266/1/MPRA_paper_4266.pdf
Tatom, Jojn and Godsted, David (2006): Targeting the unbanked-financial literacy's magic bullet? Published in: Networks Financial Institute Report No. 20060NFI-02 (14 November 2006)
en
oai:mpra.ub.uni-muenchen.de:4295
2019-09-28T02:31:33Z
7374617475733D756E707562
7375626A656374733D47:4731:473134
7375626A656374733D47:4732:473239
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4295/
Il rapporto tra impresa e agenzia di rating: la soluzione del multi-rating
Mattarocci, Gianluca
G14 - Information and Market Efficiency ; Event Studies ; Insider Trading
G29 - Other
The credit rating market is characterized by low competition and a potential conflict of interest, due to the system of remuneration of the rating services, which impairs the reliability of the judgement delivered. Multiple credit rating means further costs for companies, because of the fees paid to more than one rating agency, but it does bring significant benefits in terms of the dissemination, on the market, of judgements concerning the companies.
This paper examines the relationship between the number of rating announcements concerning a company and the performance of the securities issued by that company, besides the effects of discordant ratings assigned to a company by different rating agencies (so-called “split rating”), and presents a detailed study of multiple credit rating and of the advantages determined by the placement of issued securities at higher prices, in connection with the new ratings assigned by different agencies. An analysis of split-rating completes this overview of the issue, highlighting how the weight carried by the different rating agencies can affect market reactions.
2005-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4295/1/MPRA_paper_4295.pdf
Mattarocci, Gianluca (2005): Il rapporto tra impresa e agenzia di rating: la soluzione del multi-rating.
en
oai:mpra.ub.uni-muenchen.de:4316
2019-09-28T09:21:19Z
7374617475733D707562
7375626A656374733D47:4732:473239
7375626A656374733D45:4534:453432
7375626A656374733D4F:4F33:4F3333
7375626A656374733D45:4535:453531
7375626A656374733D4F:4F31:4F3134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4316/
Implications of Web 2.0 for financial institutions: Be a driver, not a passenger
Heng, Stefan
Meyer, Thomas
Stobbe, Antje
G29 - Other
E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems
O33 - Technological Change: Choices and Consequences ; Diffusion Processes
E51 - Money Supply ; Credit ; Money Multipliers
O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
Web 2.0 heralds a new era of communication with a massive increase in information supply and where news, opinion and services flow directly from user to user. Financial institutions can take advantage if they stay abreast of this development. However, any Web 2.0 presence of a financial institution must be authentic and consistent with the institution’s brand and corporate culture. To leverage the potential, the need for an immaculate reputation and the right type of brand is becoming ever more important.
2007-07-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4316/1/MPRA_paper_4316.pdf
Heng, Stefan and Meyer, Thomas and Stobbe, Antje (2007): Implications of Web 2.0 for financial institutions: Be a driver, not a passenger. Published in: E-conomics No. 63 (31 July 2007)
en
oai:mpra.ub.uni-muenchen.de:4318
2019-09-28T00:50:46Z
7374617475733D756E707562
7375626A656374733D47:4732:473238
7375626A656374733D52:5232:523231
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4318/
Zero down payment mortgage default
Kelly, Austin
G28 - Government Policy and Regulation
R21 - Housing Demand
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Previous research has focused on equity as a prime determinant of mortgage default propensities. This paper extends the analysis of mortgage default to include mortgages that require no down payment from the purchaser. A continuous time hazard model is used to estimate the conditional probability of a serious delinquency, or a claim, as a function of a host of standard control variables, and indicators for the presence and source of the down payment. The data consist of a nationally representative random sample of about 5,000 FHA insured single family mortgages endorsed in Fiscal Years 2000, 2001, and 2002, observed through September 30, 2006, and samples of about 1,000 FHA loans each from the Atlanta, Indianapolis, and Salt Lake City MSAs in the same time period. The results indicate that borrowers who provide down payments from their own resources have significantly lower default propensities than do borrowers whose down payments come from relatives, government agencies, or non-profits. Borrowers with down payments from seller-funded non-profits, who make no down payment at all, have the highest default rates. Additionally, borrowers who do not make down payments from their own resources tend to have higher loss given default in the small subset of loans that had completed the property disposition process.
2007-07-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4318/1/MPRA_paper_4318.pdf
Kelly, Austin (2007): Zero down payment mortgage default.
en
oai:mpra.ub.uni-muenchen.de:4388
2013-04-26T19:32:04Z
oai:mpra.ub.uni-muenchen.de:4391
2019-09-26T13:17:32Z
7374617475733D756E707562
7375626A656374733D5A:5A31:5A3133
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4391/
Strategi Alternatif Penanggulangan Kemiskinan di Papua melalui Pengembangan Keuangan Mikro
Landiyanto, Erlangga Agustino
Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
Microfinance is one of alternative strategy to reduce poverty. there are kind of thinking of different microfinance strategy for poverty reduction. therefore, this paper try to explore several suitable alternative strategy which can be implemented to develop microfinance in papua. two particular gates of this strategy are strenghtening microfinance institutions and develop community based microfinance.
Keuangan mikro merupakan salah satu strategi efektif dalam menanggulangi kemiskinan. Terdapat berbagai pemikiran tentang strategi keuangan mikro yang berbeda dalam penanggulangan kemiskinan. Oleh karena itu, makalah ini mencoba mengeksplorasi beberapa strategi alternatif yang sesuai dan dapat diimplementasikan dalam mengembangkan keuangan mikro di papua. dua koridor utama dari strategi itu berupa penguatan lembaga keuangan mikro dan pengembangan keuangan mikro berbasis komunitas
2006-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4391/1/MPRA_paper_4391.pdf
Landiyanto, Erlangga Agustino (2006): Strategi Alternatif Penanggulangan Kemiskinan di Papua melalui Pengembangan Keuangan Mikro.
id
oai:mpra.ub.uni-muenchen.de:4398
2019-09-27T04:42:25Z
7374617475733D707562
7375626A656374733D48:4832:483235
7375626A656374733D48:4832:483232
7375626A656374733D47:4732:473231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4398/
Competitive advantage: a study of the federal tax exemption for credit unions
Tatom, John
H25 - Business Taxes and Subsidies
H22 - Incidence
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
This study evaluates the federal tax exemption for credit unions. It reviews the industry’s history, its unique exemption, the motivation behind this tax treatment, the eroding case for special treatment, the size of the tax break and its effects on credit unions, their competitors, and their members.
The nation’s credit unions always have been exempt from federal income taxation. Federally chartered credit unions are even exempt from state and local income taxation. Saving and loan associations, also originally largely exempt from taxation, lost their exemption on 1951 and calls for tax reform, including those of former Presidents Jimmy Carter and Ronald Reagan, included provisions to end the special exemptions of credit unions. But the credit union tax exemptions have survived. At least in part, these exemptions arose from the cooperative nature of credit union ownership and limits on their ability to compete because of their legal “field of membership” restrictions, which limited who could be a depositor and borrower from a credit union. Nonetheless, credit unions have competed with other financial institutions, especially banks, with a major cost advantage, the tax exemption. Tax exemption has allowed credit unions to grow much more rapidly than banks. Unusual growth was also fostered by steady erosion of limits on credit union membership over the past two decades. In 1998, the US Supreme Court struck down the liberalization of membership rules, but the US Congress promptly passed new legislation overriding the court. As a result the processes of consolidation, merger and broadening of geographic markets accelerated while credit unions were allowed to keep their tax exemptions. Thus, Congress created new tensions by weakening the case for tax exemption without addressing its continuing legitimacy.
Today credit unions continue to grow faster than banks, have little practical limitations on membership, make business loans that increasingly have no limits on who can borrow, how much or for what purpose. Even the limits that Congress imposed, as they otherwise removed limits on credit union markets and competition, have broad loopholes and remain under serious challenge by the credit union industry.
The tax loss to the federal Treasury is estimated here to be $2 billion and to be growing rapidly. Indeed, the tax loss over the five years, 2004-2008 is estimated to be $12.6 billion and reaches $31.3 billion over the ten-year window 2005-2014. The size of the tax loss is substantially higher than estimates prepared by official arbiters including the Office of Management and Budget or the Congressional Budget Office.
The annual loss in tax revenue could accrue to several different credit union constituencies: members, as depositors (higher “dividends,” or interest rates, on their “shares,” or deposits), borrowers (lower interest rates on loans), or shareholders (through greater retained earnings). The benefits of the tax break could also accrue to management, workers or other suppliers through inflated costs or inefficient operations.
Based on other studies of differences between credit unions and banks and on direct and indirect evidence gathered for this study, it is found that the principal effect of the tax break is to enlarge the retained earnings or equity of the credit union industry. A higher ratio of equity to assets has made possible a larger and faster growing industry than would otherwise have been possible. There is some evidence that certain type loans have lower rates at credit unions. These are for loans that have become less profitable and less available at banks, such as auto loans. There is also some evidence that part of the tax advantage is absorbed by higher costs than they would have in a taxed, or more competitive, environment. Overall the dominant effect is to boost the equity ratio. Over the past ten years, credit unions have had an equity ratio, the ratio of equity to total assets that is more than 25 percent larger than that of banks. This is about the size of effect predicted by economic theory if the dominant effect of the tax break is to raise this measure.
The equity ratio is a cushion against losses in asset value that could threaten the solvency of a financial institution. It is also a constraint on growth because a relatively safe institution cannot allow its assets to grow faster than its equity if it is holding its desired equity ratio. Despite the fact that the risk of credit union assets, largely shorter term consumer loans and consumer mortgages, is much smaller than the risks of bank assets, which are largely business loans and securities, credit unions hold a higher cushion against risk. These unusually large holding of equity cannot be realized through stock sales by the owners/members of credit unions and they do not yield competitive risk-adjusted yields on assets that they would have to earn if credit unions were subject to the same taxes as banks. Removing the tax exemption would level the playing field, reducing the excessive growth and relative size of credit union assets. It would also raise about $2 billion in tax revenue, either directly from credit unions or from more profitable and more highly taxed banks, where credit union deposits and assets would migrate if the tax exemption were ended. Finally it would raise the rate of return on some $65 billion of capital that is squirreled away in credit unions, earning lower rates of return than would be the case at taxed banks.
Some analysts have argued that small institutions (under $10 million in assets) should continue to be tax exempt because of their special character and, perhaps, innate inefficiencies. But the corporate income tax already takes smallness into effect by taxing low-income firms at lower tax rates (15%, instead of up to 35% for large firms, or up to 39 percent for mid-sized corporations).
2005-02-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4398/1/MPRA_paper_4398.pdf
Tatom, John (2005): Competitive advantage: a study of the federal tax exemption for credit unions. Published in: Tax Foundation Special Academic Paper (28 February 2005): pp. 1-28.
en
oai:mpra.ub.uni-muenchen.de:4469
2019-09-28T16:50:35Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3137
7375626A656374733D48:4835
7375626A656374733D47:4732:473238
7375626A656374733D47:4732:473231
7375626A656374733D45:4536:453632
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4469/
Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?
Roy Chowdhury, Prabal
Roy, Jaideep
O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
H5 - National Government Expenditures and Related Policies
G28 - Government Policy and Regulation
G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
E62 - Fiscal Policy
This paper examines public-private partnerships in micro-finance,
whereby NGOs can help in channelizing credit to the poor, both in
borrower selection, as well as in project implementation. We argue
that a distortion may arise out of the fact that the private
partner, i.e. the NGO, is a motivated agent. We find that
whenever the project is neither too productive, nor too
unproductive, reducing such distortion requires unbundling
borrower selection and project implementation, with the NGO being
involved in borrower selection only.
2007-08-14
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4469/1/MPRA_paper_4469.pdf
Roy Chowdhury, Prabal and Roy, Jaideep (2007): Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?
en
metadataPrefix%3Doai_dc%26offset%3D4470%26set%3D7375626A656374733D47%253A4732