PSN: Markets & Investment (Topic)最新文献

{"title":"Do Sanctions Improve Compliance with Public Finance Laws and Regulations?","authors":"Richard I Allen, Yugo Koshima","doi":"10.1111/pbaf.12197","DOIUrl":"https://doi.org/10.1111/pbaf.12197","url":null,"abstract":"This paper examines how a regime of penalties or sanctions for breaching public financial management (PFM) laws and regulations can be designed to increase compliance with these laws. Financial irregularities can be as high as five to eight percent of GDP or more in some poorly administered countries. If a sanctions regime is to be effective, it should meet the three core principles of impartiality, proportionality, and transparency. An empirical analysis of sanctions regimes and recovery rates in 26 countries suggests that excessive use of “harsh” sanctions could negatively affect the level of compliance. The design of a sanctions regime should include both “soft” and “harsh” measures which are proportionate to the severity of financial irregularities. The paper describes three institutional models (“financial police,” “risk‐based,” and “sanctions coordinator”) that countries have used to implement a sanctions regime. An approach targeting expenditure that is highly vulnerable to irregularities tends to achieve a better recovery rate than a regime based on a “mass investigation, mass sanctions” approach. A tailored approach based on the third model may be appropriate for low‐capacity countries.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130640657","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":"Regulating the Doom Loop","authors":"Spyros Alogoskoufis, Sam Langfield","doi":"10.2849/14299","DOIUrl":"https://doi.org/10.2849/14299","url":null,"abstract":"Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have not reached consensus on whether and how to reform the regulatory treatment of banks’ sovereign exposures. To inform policy discussions, this paper simulates portfolio reallocations by euro area banks under scenarios for regulatory reform. Simulations highlight a tension in regulatory design between concentration and credit risk. An area-wide low-risk asset—created by pooling and tranching cross-border portfolios of government debt securities— would resolve this tension by expanding the portfolio opportunity set. Banks could therefore reinvest into an asset that has both low concentration and low credit risk. JEL Classification: G01, G11, G21, G28","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126369757","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":"Better Safe than Sorry. Will New Rules on Bank Corporate Governance Prevent Excessive Risk Taking?","authors":"M. Brogi, Valentina Lagasio","doi":"10.2139/ssrn.3215820","DOIUrl":"https://doi.org/10.2139/ssrn.3215820","url":null,"abstract":"Conventional wisdom leads to assert that good governance may underpin bank performance while bad governance destroys stability and soundness. Using the banks in the Eurostoxx index, we run a factor analysis that enables us to synthesize 23 bank board characteristics into seven key features: independence, size, dedication, tenure, corporate governance quality, external perspective, competence and diversity. We then use a multiple regression and find that indeed Corporate Governance curbs risk taking - measured by Z-Score - by banks in our sample. Our findings try to assess which governance variables are most relevant for regulators in containing bank risk taking.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122491148","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":"Can Bad Law Do Good? A Retrospective on Conflict Minerals Regulation","authors":"Karen E. Woody","doi":"10.2139/SSRN.3147972","DOIUrl":"https://doi.org/10.2139/SSRN.3147972","url":null,"abstract":"Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) requires public companies to disclose the presence of conflict minerals in their products. Dodd-Frank as a whole has faced a barrage of criticism since its passage, and Section 1502 was not immune from intense critical backlash. As I have argued in prior scholarship and Congressional testimony, Section 1502 was ill-conceived in substance and form. Its application resulted in the improper use of securities laws to the detriment of its laudable public international law goals. This Article addresses whether, despite the structural and consequential shortcomings of the provision, it nevertheless has had positive normative effects related to consumer awareness and behavior, as well as corporate awareness and behavior. In other words, this Article considers whether the functional effects of the law have “moved the needle” in the direction of its intent, despite the provision’s potentially fatal flaws. This phenomenon begs the question of whether there is a function and purpose of “bad law.” Given that the fate of Section 1502 hangs largely in the balance, and the current administration has indicated that it will not provide funds for the implementation of Section 1502, the time is ripe for an analysis of the effectiveness of Section 1502 to date. This Article uses a retrospective lens to analyze the effect of Section 1502 on transparency within corporate supply chains, consumer behavior and awareness, and corporate social responsibility. In doing so, this Article will consider the effects that “bad law” can have in society.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127832365","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":"인터넷전문은행의 거래 단계별 금융소비자 보호 방안 (A Study on Financial Consumers Protection in the Internet Primary Banks)","authors":"W. Jeong, Jinho Lee","doi":"10.2139/ssrn.3135186","DOIUrl":"https://doi.org/10.2139/ssrn.3135186","url":null,"abstract":"<b>Korean Abstract:</b> 본 연구는 최근 국내에서 영업을 시작한 인터넷전문은행이 금융소비자에게 야기할 수 있는 취약점 및 문제점을 파악하고, 나아가 국내 인터넷전문은행의 성공적인 정착을 위한 바람직한 금융소비자 보호 방안과 금융감독 방향을 제시하였다. 인터넷전문은행과의 거래를 통해 금융소비자가 직면할 수 있는 취약점 및 문제점은 온라인과 모바일 환경에서 비대면 거래방식을 채택하는 인터넷전문은행의 고유 특성에 기인한다. 본 연구에서는 이를 고려하여 금융소비자가 인터넷전문은행과의 거래에서 직면할 문제점을 인터넷전문은행과의 거래 단계별로 구분하고 각 단계별 금융소비자 보호 방안과 금융감독 방향을 제시하였다. 즉 거래 이전 단계에서는 정보제공 적정성 문제, 거래 시에는 불완전 판매로 인한 문제, 비대면 실명확인의 문제, 제휴업체와의 개인정보 활용 문제, 전산시스템 이상으로 인한 문제, 거래 이후 단계에서는 소비자불만에 대한 민원처리문제, 소비자 손실에 대한 피해보상 문제, 금융기관 파산과 예금자보호 문제 등을 충분히 고려하여 금융소비자 보호 방안을 제시하였다. 인터넷전문은행이 지속적으로 성공하기 위해서는 무엇보다도 이를 이용하는 금융소비자들의 만족도를 높이고 나아가 인터넷전문은행에 대한 신뢰를 형성하는 것이 중요하다. 이를 위해 본 연구에서는 인터넷전문은행에 대한 바람직한 금융감독 방향을 금융회사로서 인터넷전문은행이 적절한 위험관리를 통해 사전적으로 위험에 대비할 수 있도록 하는 건전성 규제와 다양한 영업활동에 대한 영업행위 규제의 필요성을 제언하였다. <b>English Abstract:</b> This study investigates the weaknesses and problems of Internet Primary Banks that have recently started operating in Korea. In addition, we propose a desirable financial consumer protection plan and financial supervision direction for successful settlement of domestic Internet Primary Banks. The weaknesses and problems that financial consumers face in conducting transactions with Internet Primary Banks have been attributed to the unique characteristics of Internet Primary Banks adopting non-face-to-face transactions in online and mobile environments. In this paper, we distinguish between the problems faced by financial consumers in dealings with Internet Primary Banks by transaction stage with Internet Primary Banks, and propose financial protection measures and financial supervision direction at each stage. The following problems were raised at each stage and a financial consumer protection plan with sufficient consideration was proposed: the problems in the pre-transaction stage were the inappropriateness of information provision; the problems in the transaction step were incomplete sales in transactions, problems in non-contact blindness confirmation, problems in utilizing personal information with affiliates, and problems in computer systems; and the problems in the post-transaction stage were complaint handling, damage compensation for consumer loss, bankruptcy of financial institution and protection of depositors. In order for Internet Primary Banks to continue to be successful, it is important to raise the satisfaction level of financial consumers who use them and to build trust in Internet Primary Banks. In this paper, we propose the necessity of regulating the soundness of the Internet Primary Banks and the supervision of the activities on their businesses.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129328021","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":"Assessing the Evolution of Cryptocurrency: Demand Factors, Latent Value and Regulatory Developments","authors":"Ryan Clements","doi":"10.2139/SSRN.3117635","DOIUrl":"https://doi.org/10.2139/SSRN.3117635","url":null,"abstract":"The purpose of this Comment is to analyze the roots of this fervor— including that which drove Bitcoin’s initial demand surge—and investigate whether cryptocurrency can survive a market bubble that experienced a significant correction in 2018.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124110147","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":"Going Beyond Regulatory Sandboxes to Enable FinTech Innovation in Emerging Markets","authors":"Simone di Castri, Ariadne Plaitakis","doi":"10.2139/SSRN.3059309","DOIUrl":"https://doi.org/10.2139/SSRN.3059309","url":null,"abstract":"Although technological solutions promise access to cheaper and safer financial services, creating regulation that enables innovation in the FinTech industry remains a challenge. Regulators must protect the public interest while still providing an environment conducive to product and partnership innovation. In response, many financial authorities are introducing regulatory sandboxes to simultaneously give providers the opportunity to test their innovations while also giving regulators time to learn about the risks of the products. However, as our experience with mobile money demonstrates, sandboxes do not go far enough to create a truly enabling environment for FinTech innovation. To do so public-sector stakeholders need to address broad business barriers and consider the entire package of incentives faced by FinTech firms and investors. The authors provide a nine-item list of reforms beyond sandboxes for governments to consider in order to create a holistic and multi- dimensional ecosystem for FinTech innovation.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"35 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122178363","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":"Macroprudential Policy, Differences in Beliefs and Growth","authors":"Daren Wei","doi":"10.2139/ssrn.3072677","DOIUrl":"https://doi.org/10.2139/ssrn.3072677","url":null,"abstract":"I propose a model of macroprudential policy interventions in financial markets. I solve a heterogeneous-agent asset pricing model and show that speculation caused by differences in beliefs about expected technology growth increases asset returns volatility and the equity risk premium, reduces aggregate output and makes individual consumption growth and leisure more volatile. Macroprudential policy helps to offset the distortions caused by speculation, reducing the asset return volatility and the equity risk premium. It also mitigates output distortion and smooths consumption and leisure. Therefore, under every possible reasonable probability measure specified by the belief-neutral welfare criteria proposed by Brunnermeier, Simsek, and Xiong (2014), macroprudential policy raises social welfare.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132820789","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":"Strategic Risk, Banks, and Basel III: Estimating Economic Capital Requirements","authors":"A. Chockalingam, S. Dabadghao, R. Soetekouw","doi":"10.2139/ssrn.3057235","DOIUrl":"https://doi.org/10.2139/ssrn.3057235","url":null,"abstract":"Purpose \u0000 \u0000 \u0000 \u0000 \u0000Basel III regulations require banks to protect themselves against strategic risk. This paper aims to provide a comprehensive and measurable definition of this risk and proposes a framework to estimate economic capital requirements. \u0000 \u0000 \u0000 \u0000 \u0000Design/methodology/approach \u0000 \u0000 \u0000 \u0000 \u0000The paper studies the literature and solicits expert opinion in formulating a comprehensive and measurable definition of strategic risk. The paper postulates that the economic capital for a bank’s strategic risk should be estimated using the cost of equity as the profitability threshold, rather than zero and develops a simulation-based framework to estimate economic capital. \u0000 \u0000 \u0000 \u0000 \u0000Findings \u0000 \u0000 \u0000 \u0000 \u0000The framework closely matches the actual economic capital outlay for strategic risk from our case study of ABN AMRO. It is shown that a bank’s strategic growth plans can fall into one of two scenarios based on risk-return characteristics. In one scenario, the required economic capital outlay will increase, and decrease in the other. \u0000 \u0000 \u0000 \u0000 \u0000Practical implications \u0000 \u0000 \u0000 \u0000 \u0000This framework is generalizable and makes use of widely accepted and used practices in banks, making it readily implementable in practice. It does not introduce errors resulting from model selection, parameterizations or complex calculations. \u0000 \u0000 \u0000 \u0000 \u0000Social implications \u0000 \u0000 \u0000 \u0000 \u0000Society would be worse off in the absence of banking and lending services. Banks need to take risks to grow and stay competitive. The framework facilitates better strategic risk management, protecting banks from collapse and reducing the need for taxpayer-funded bailouts. \u0000 \u0000 \u0000 \u0000 \u0000Originality/value \u0000 \u0000 \u0000 \u0000 \u0000The paper provides a measurable and practitioner-verified definition of strategic risk and proposes a simple framework to estimate economic capital requirements, a crucial topic, given the threats and increased levels of strategic risk facing banks.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126548119","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":"Europe's Zombie Megabanks and the Deferential Regulatory Arrangements That Keep Them in Play","authors":"E. Kane","doi":"10.2139/SSRN.3038510","DOIUrl":"https://doi.org/10.2139/SSRN.3038510","url":null,"abstract":"This paper analyzes the link between Kamakura Risk Information Services (KRIS) data on megabank default probabilities and credit spreads. It develops an “eye-ball” test for the extent of individual-bank “zombieness” whose grade turns on how weakly a bank’s credit spread responds to movements in KRIS default probabilities calculated over different horizons. The intuition underlying the test is that the more decapitalized a bank is allowed to become, the more creditors must be relying on someone other than stockholders to absorb the firm’s risk of default. The tests show that the recovery of European megabanks from the 2008-09 crisis has been incomplete. Creditors of Europe’s giant banks still seem to be relying on implicit guarantees. In particular, credit spreads on the bonds of these banks appear to be relatively insensitive to the level of the issuer’s longer-term probabilities of default. Coupled with the high pairwise correlation that KRIS default probabilities show between major US and European banks, this finding suggests that creditors do not expect the EU’s bail-in requirements to play much of a role in resolving megabank insolvencies during the next crisis.","PeriodicalId":138725,"journal":{"name":"PSN: Markets & Investment (Topic)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131405512","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}