PSN: Markets & Investment (Topic)最新文献

{"title":"Consumer Salience and Quality Provision in (Un)Regulated Public Service Markets","authors":"Yiquan Gu, Alexander Rasch, Tobias Wenzel","doi":"10.2139/ssrn.3770534","DOIUrl":"https://doi.org/10.2139/ssrn.3770534","url":null,"abstract":"This paper examines the publication of quality indicators in service markets with public finance systems, such as education and healthcare markets. We provide a spatial model of product differentiation in which the reporting of such indicators increases consumers’ decision weight on quality relative to other attributes (such as prices and horizontal match) and study the effects in two market environments: markets with regulated prices and markets with unregulated prices. We find that the publication of quality indicators increases quality investments by service providers, but also leads to higher prices and less product variety. Consumer and total welfare may decrease with such policies, in particular when consumers are heavily subsidised.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"286 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122403064","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Risky Bet: Should the EU Choose a microprudential or a Credit Guidance Approach to Climate Risk?","authors":"Agnieszka Smoleńska, Jens van 't Klooster","doi":"10.2139/ssrn.3949541","DOIUrl":"https://doi.org/10.2139/ssrn.3949541","url":null,"abstract":"Banking regulation and supervision have a key role to play in realising the EU’s climate change objectives. In this article we analyse the EU-level initiatives currently underway to green the banking system, in particular with regard to the microprudential rulebook. We document how regulators work hard to fit climate change concerns into the existing objectives of the microprudential framework. We also assess whether these efforts are likely to be successful by sketching two ways forward, which involve their own distinct hazards. The first is a predominantly microprudential approach which sees policy-makers take action to force banks to develop adequate internal risk management procedures while taking a largely agnostic approach as to what methodologies are appropriate. If this is the way forward, we see a number of risks: banks have a clear incentive to downplay risk, while large financial institutions gain a significant advantage and the distribution of responsibility between banks and supervisors becomes blurred. We also outline a second “credit guidance” approach, in which regulators provide fine-grained guidance on how banks should evaluate climate risk. Although we broadly think this approach is the more effective route to greening EU banking, we also see challenges of an entirely different sort: regulators will unavoidably face political choices and EU lawmakers need to consider issues of legality, legitimacy and accountability. In this regard, we argue, the EU faces a risky bet.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131084168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The rise and rule of zombie banking in Cyprus","authors":"S. Savvides","doi":"10.2139/ssrn.3941919","DOIUrl":"https://doi.org/10.2139/ssrn.3941919","url":null,"abstract":"The Government has facilitated and protected the banks on a stand and motto that “without banks there is no economy”. However, eight years after the financial crisis that culminated to the infamous Bail-In in Cyprus the country remains heavily indebted with private debt exceeding by at least three times the GDP. In such conditions banks, rather than supporting the real economy in unfavourable conditions, engage in a predatory role by which to extract as much as possible from the collateral and guarantees they hold their balance sheet. The Government is at the very least myopic in its approach to trust the banks to bring about economic recovery. In the author's opinion this policy is sinking the economy into a long and deep balance sheet recession.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130044521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do Reserve Requirements Restrict Bank Behavior?","authors":"Hiroshi Gunji, Kazuki Miura","doi":"10.2139/ssrn.3939297","DOIUrl":"https://doi.org/10.2139/ssrn.3939297","url":null,"abstract":"This study aims to examine whether a reserve requirement system constrains bank behavior. In Japan, a system is applied to certain regional banks where required reserve ratios are imposed based on the amount of their deposits. Using a natural experiment, we perform a bunching estimation to examine whether this reserve requirement system decreases bank deposits. To the best of our knowledge, this study is the first to examine the effects of reserve requirement systems through bunching estimation. Our results demonstrate that the reserve deposit system depresses bank deposits, resulting in a decline in total deposits. However, this phenomenon is not observed during periods of unconventional monetary policies. This study highlights an important consideration when discussing changes in the reserve requirement system.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"196 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132538238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Effects on Consumers from Two State-Level Regulations of the Payday Loan Market","authors":"Thomas W. Miller, Todd J. Zywicki","doi":"10.2139/ssrn.3935920","DOIUrl":"https://doi.org/10.2139/ssrn.3935920","url":null,"abstract":"We analyze 15.6 million storefront payday loans made to 1.8 million unique borrowers in 2013 to examine payday loan terms and usage. We find that loan prices and loan amounts are generally not at state-mandated maximum levels. For the 30 states in our sample, we find that the number of loans per person in states with maximum loan amount limits less than or equal to $500 is higher than in states with maximum loan amount limits greater than $500, but the average total amount borrowed during the year is similar. There is a simple explanation for this statistical relationship between loan-amount limits and number of loans per person. If consumers cannot borrow the amount needed at the time of their loan, they will respond by increasing their loan volume to obtain the needed funds which could result higher overall costs.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126251282","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Liquidity Regulation and Bank Risk","authors":"Foly Ananou, Dimitris K. Chronopoulos, Amine Tarazi, John O. S. Wilson","doi":"10.2139/ssrn.3917632","DOIUrl":"https://doi.org/10.2139/ssrn.3917632","url":null,"abstract":"In this paper, we investigate the impact of liquidity requirements on bank risk. We take advantage of the implementation of the Liquidity Balance Rule (LBR) in the Netherlands in 2003 and analyze its impact on bank default risk. The LBR was imposed on Dutch banks only and did not apply to other banks operating elsewhere within the Eurozone. Using this differential regulatory treatment to overcome identification concerns, we find that following the introduction of the LBR, the risk of Dutch banks declined relatively to counterparts not affected by the rule. Concomitantly, despite the lower cost of funding driven by the LBR, the profitability of Dutch banks decreased in comparison with other banks in Europe, as a result of a decrease in income accruing from interest-bearing activities. Our findings also indicate that relatively to unaffected banks, Dutch banks might not have actively tried to offset their loss in interest income by increasing interest rates of loans. However, better financing conditions allowed Dutch banks to increase the shares of deposits and capital on the liability side of their balance sheets.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"136 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127350496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Higher-Order Exposures","authors":"Garbrand Wiersema, Alissa M. Kleinnijenhuis, Esti Kemp, Thom Wetzer","doi":"10.2139/ssrn.3914076","DOIUrl":"https://doi.org/10.2139/ssrn.3914076","url":null,"abstract":"Traditional exposure measures focus on direct exposures to evaluate the losses an institution is exposed to upon the default of a counterparty. Since the Global Financial Crisis of '07/'08, indirect exposures via common asset holdings are increasingly recognized too. Yet direct and indirect exposures fail to capture the losses that result from shock propagation and amplification following the counterparty's default. In this paper, we introduce the concept \"higher-order exposures\" to refer to these spill-over losses and propose a way to formalize and quantify them. Using granular data of the South African financial system, we show that higher-order exposures make up a significant part of exposures – particularly during times of financial distress when exposures matter most. We also show that higher-order exposures cannot simply be extrapolated from direct or indirect exposures, since they depend strongly on the network structure and the robustness of individual institutions. Our findings suggest that higher-order exposures should inform the design and calibration of those tools in the regulators' arsenal where exposures matter -- including large exposure limits, capital requirement calibration, stress test design and resolution. Failure to do so may result in both lax ex-ante regulation and ill-informed ex-post handling of financial crises.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122011567","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Introduction of Credit Scores and Subprime Lending in Minority Neighborhoods","authors":"E. Jakučionytė, Swapnil Singh","doi":"10.2139/ssrn.3905683","DOIUrl":"https://doi.org/10.2139/ssrn.3905683","url":null,"abstract":"How do technological advancements in credit markets affect minority communities? We use the endorsement of FICO credit scores by the Government Sponsored Enterprises (GSEs) in mortgage underwriting to answer this question. The use of credit scores led to the sorting of prime and subprime lenders across minority and non-minority neighborhoods. In minority neighborhoods prime lenders were substituted by subprime lenders and, as a result, the share of subprime lending in minority neighborhoods increased by 5 percentage points. Prime lenders with a stronger relationship with the GSEs reduced their lending in minority neighborhoods more. The level of securitization by the GSEs in minority neighborhoods also decreased.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130921885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Report 2020 on Non-financial Reporting of Italian Listed Companies (Rapporto 2020 sulla rendicontazione non finanziaria delle società quotate italiane)","authors":"Nadia Linciano, Angela Ciavarella, Giovanna Di Stefano, Lucia Pierantoni, livia piermattei","doi":"10.2139/ssrn.3872828","DOIUrl":"https://doi.org/10.2139/ssrn.3872828","url":null,"abstract":"<b>English Abstract:</b> The third edition of this Report analyses the implementation of the Directive 2014/95/UE, transposed in Italy by the Legislative Decree no. 254/2016 (the Decree), in Italian listed companies. The Report highlights those behaviours of companies and boards, which show a cultural transformation towards an integration of ESG (Environmental, Social and Governance) factors into the corporate decision-making. The first section of the Report covers non-financial statements published pursuant to the Decree, focusing on the materiality analysis carried out by companies, and on Strategic plans presented to investors. The second and the third sections explore the relevance of non-financial issues respectively at the board level and within CEOs’ remuneration policies. To this aim, on the basis of a desk analysis, evidence was gathered from the guidelines issued by companies prior to the board appointment and from the corporate governance reports. Finally, the report includes a Survey on board leadership and sustainable business involving members of Nedcommunity, the Italian Association of non-executive and independent directors.<br>The progression of the cultural transformation triggered by the compliance with obligations on non-financial reporting can be thought as a three-stage phased process including Awareness, Capabilities and Engagement. In this Report, the first two stages are identified through the analysis of NFSs while the third stage refers to the information drawn from the abstracts of Strategic plans. Awareness is the precondition for change. It originates from compliance with reporting obligations and results into the acknowledgement of the relevance of ESG issues and of their ability to kick-off the transformation process. Compared to 2019, while the number of companies publishing a NFS and performing materiality analysis is unchanged, some behaviours have become more frequent. In 2020, the involvement of the BoD in the materiality analysis has been recorded in 39 companies, up from 21 in the previous year. Board inductions on ESG subjects, whose frequency had declined over 2018-2019, were held in 32 cases compared to 28, even if description of depth, length and implementation of the inductions are still not available. The number of firms establishing a Sustainability committee reported a significant increase, from 54 to 73 out of 151 companies who published an NFS. Capabilities is the area that registered the most relevant changes in 2020. As for the materiality analysis, stakeholder engagement kept on recording progress although at a slower pace than that documented in 2019. In detail, external stakeholder engagement was reported in 83 cases (70 in 2019 and 44 in 2018) while engagement with the top management hit 74 cases (69 in 2019 and 47 in 2018). In addition, 20 companies put in place ESG data collection systems and 12 issuers used platforms for stakeholder engagement or big data analytics tools to enrich material","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"2005 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125832556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"DeFi Protocol Risks: The Paradox of DeFi","authors":"Nic Carter, Linda Jeng","doi":"10.2139/ssrn.3866699","DOIUrl":"https://doi.org/10.2139/ssrn.3866699","url":null,"abstract":"Decentralized Finance (or “DeFi”) is growing in volume and in importance. DeFi promises cheaper and more open access to financial services by reducing the costs and risks of using centralized intermediaries. DeFi also holds the promise of interoperability across blockchains that could help tear down financial sector silos, greatly promoting innovation and building vibrant financial ecosystems. However, DeFi is not without its challenges, which are understudied. This article does not seek to provide a comprehensive list of DeFi risks but to help readers conceptually understand the drivers behind the risks inherent in DeFi. Many of the risks described above stem from the decentralized nature of blockchains. The goal of automating the delivery of financial services and reducing human dependencies also has the congruent effect of reducing oversight and control. Disintermediating traditional intermediaries reduces high fees and entry friction, but also creates new opportunities for new types of intermediaries. This article discusses some of the new types of risks introduced by DeFi that are inherent to blockchain systems along with traditional types of financial risks in DeFi that manifest in new ways: (i) interconnections with the traditional financial system, (ii) operational risks stemming from underlying blockchains, (iii) smart contract-based vulnerabilities, (iv) other governance and regulatory risks, and (v) scalability challenges. In an effort to remove humans and automate as much as possible through smart contracts, DeFi has introduced or amplified these risks. The growth of DeFi will depend on its ability to navigate and build compatibility with traditional finance and on how laws and regulations respond. Perhaps the biggest challenge of all is that the DeFi ecosystem continues to grow while its underlying base layer (public infrastructure such as Bitcoin or Ethereum) faces growing pains. As DeFi grows in importance and becomes more mainstream, policymakers and industry representatives need to better understand the economic and policy consequences of these new types of risks in order to build regulatory approaches and risk management practices that can support and facilitate a healthy and robust DeFi ecosystem and, ultimately, the financial stability of the greater financial system and real economy.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"351 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115974956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}