Monetary Economics: Financial System & Institutions eJournal最新文献

{"title":"Cross-Border Lending and the International Transmission of Banking Crises","authors":"D. Dieckelmann","doi":"10.2139/ssrn.3650149","DOIUrl":"https://doi.org/10.2139/ssrn.3650149","url":null,"abstract":"This paper introduces a new transmission channel of banking crises where sizable cross-border bank claims on foreign countries with high domestic crisis risk enable contagion to the home economy. This asset-side channel opposes traditional views that see banking crises originating from either domestic credit booms or from cross-border borrowing. I propose a combined model that predicts banking crises using both domestic and foreign factors. For developed economies, the channel is predictive of crises irrespective of other types of capital ows, while it is entirely inactive for emerging economies. I show that policy makers can significantly enhance current early warning models by incorporating exposure-based risk from cross-border lending.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129556790","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":"Corporate Governance and Financial Performance in the Banking Sector of Nigeria and the United Kingdom","authors":"A. Ajibade, Kofo Jaji, Jerry Kwarbai","doi":"10.26772/CJSMS2020050101","DOIUrl":"https://doi.org/10.26772/CJSMS2020050101","url":null,"abstract":"Banks are the support system of any economy, hence the significant need for economies to have a healthy system of banking with operative corporate governance system. The study examined the effect of corporate governance and financial performance in the banking sector of Nigeria and United Kingdom. It analyzed secondary data collated from the annual report of ten listed banks each from the Nigeria and UK stock exchange markets. Using multiple regression model, the study examined the combined effect of board size, board composition, audit committee and firm size on the performance of the listed banks. The result shows that corporate governance variables have a significant effect on the financial performance of the Nigeria and U.K banking sector.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129223627","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":"Islamic Mortgage-Alternatives in Ireland: A Comparative Reflection on a Decade of Consumer Appetite in the Face of Legislative Uncertainty","authors":"Edana Richardson, Simon J. O’Neill","doi":"10.2139/SSRN.3759265","DOIUrl":"https://doi.org/10.2139/SSRN.3759265","url":null,"abstract":"This article provides an in-depth and comparative analysis of the accommodation of Islamic mortgage-alternatives under Irish law. It draws on results from two surveys of Ireland’s Muslim community and uses a comparative approach with the UK to highlight continuing gaps in the legal framework relevant to Ireland’s Islamic finance market.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128706271","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 Gradient Boosting Approach to Estimating Tail Risk Contagion","authors":"Yunshen Long, Liang Wu","doi":"10.2139/ssrn.3626246","DOIUrl":"https://doi.org/10.2139/ssrn.3626246","url":null,"abstract":"We propose a flexible CoVaR-based measure to estimate the tail risk contagion across financial institutes in a high dimensional framework. Considering potential nonlinearity and interaction among the financial institutes, a single-index indicator representing directed spillover is derived from Gradient Boosting Machine based generalized quantile regression. Our approach can be utilized to monitor risk spillover channels for risk supervision. Empirically, we investigate 16 publicly-listed banks in China with our proposed method. We show the outperformance of our method over the linear model. The empirical study suggests that the tail risk is inclined to spill over into the same type of banks. Besides, we find that not only state-owned banks are systemically important, but small and medium banks can play key roles in tail risk contagion, too. The total connectedness peaks when the financial system is under distress.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132070694","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":"Exchange Fees and Overall Trading Costs","authors":"Marco Di Maggio, Jerry W. Liu, Savina Rizova, R. Wiley","doi":"10.2139/ssrn.3625801","DOIUrl":"https://doi.org/10.2139/ssrn.3625801","url":null,"abstract":"In the US market, two popular exchange fee structures are “maker-taker” and “inverted” (also known as “taker-maker”). Maker-taker exchanges charge fees for taking liquidity and give rebates for providing liquidity, while inverted exchanges give rebates for taking liquidity and charge fees for providing liquidity. Using live trade data from an institutional investor that applies a flexible trading approach and seeks to participate in the natural market liquidity, we find that net of fees and rebates, trading costs are statistically indistinguishable between maker-taker and inverted exchanges. This finding has important implications for venue routing decisions in trading algorithms that do not demand immediacy, suggesting that the optimal routing strategy in terms of the tradeoff between cost and volume per unit of time is a pro-rata allocation across venues. It is also relevant to the recent discussions on legislation to fix fees across all trading venues.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133723110","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":"Bitcoin and the Demand for Money: Is Bitcoin More Than a Speculative Asset?","authors":"Michael S. Pagano, John Sedunov","doi":"10.2139/ssrn.3293998","DOIUrl":"https://doi.org/10.2139/ssrn.3293998","url":null,"abstract":"Is bitcoin money? We study the characteristics of bitcoin, following the theory of money demand first posited by Keynes (1935). Specifically, we answer three questions. First, is bitcoin used as a transactional currency? Yes. Second, is bitcoin used as a speculative currency? Yes. Third, is bitcoin used in a precautionary sense? Yes, although there are mixed results in support of this motive. We find this evidence using data on bitcoin returns and volume from 2010-2017, using a principal components analysis framework, supplemented with tests that incorporate specific elements of each component, as well as some recent international events.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131267774","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":"Universal Ownership in Practice: A Practical Positive Investment Framework for Asset Owners","authors":"Ellen Quigley","doi":"10.2139/ssrn.3638217","DOIUrl":"https://doi.org/10.2139/ssrn.3638217","url":null,"abstract":"Universal owners such as pension funds, insurance companies, university endowments, and sovereign wealth funds have an interest in the long-term health of the financial system as a whole (Hawley and Williams 2000; Dimson et al. 2013; Quigley 2019). These asset owners cannot diversify away from systemic risks such as climate change, inequality, and pandemics, and can only mitigate whole-system threats by effecting change in the real economy. Conversely, traditional socially responsible investment (SRI), responsible investment (RI), or environmental, social, and governance (ESG) frameworks tend to adopt a climate or social risk lens, with a focus on risks to the portfolio from the real economy. These (S)RI or ESG frameworks therefore typically apply wholly or largely to public equity portfolios (Hill 2020a), from which returns and dividends to the portfolio disproportionately flow but which have little to no impact on the real economy from an asset allocation perspective. For universal owners whose goal is to mitigate systemic risks, the focus must instead be on positive investment: the impact of asset owners’ investment decisions on the real economy, not the real economy’s environmental and social risks to these asset owners’ portfolios. A positive investment approach, then, eschews stock-picking in the public markets in favour of a focus on primary market asset allocation – flows of new capital to the companies they own – and forceful stewardship within the secondary market. In essence, (S)RI and ESG aim to protect individual portfolios from systemic risks; universal owners aim to mitigate systemic risks in the real world, which has the effect of internalising externalities and protecting the long-term health of the system as a whole. An (S)RI or ESG framework, then, is not fit for universal owners’ purpose. A new framework is necessary – one that replaces the lens of climate risk with the lens of universal ownership: real-world, real-economy social and environmental impact. The universal ownership framework proposed in this paper includes the following: a more urgent and tactical version of active ownership within public equity (and even within corporate bond holdings); asset allocation within the primary market; a particular focus on assets that make the transition from the primary to the secondary market; “ungameable” metrics linked to real-world effects; strategic engagement with public policy and standard-setting regimes; and forward signalling to reduce wastage and accelerate decarbonisation timelines. Together these elements of the framework have the potential to change the rules of the game, alter company behaviour and fundamental strategy, reallocate capital, and bend the emissions curve permanently downwards – precisely what is required of universal owners in this last crucial decade of climate action.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127358250","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":"Corporate Malpractice in Banks and The Price of Mistakes","authors":"P. Sarker","doi":"10.2139/ssrn.3601794","DOIUrl":"https://doi.org/10.2139/ssrn.3601794","url":null,"abstract":"This paper explores the challenges of existing corporate governance, analyzing the existing policy, ownership structure, and Bank performance. In doing so, this paper attempts to investigate the pattern of ownership composition and ownership concentration scenario towards sponsorship in Banks, the relationship between the ownership structure, firm performance, and, finally, the impact of ownership structure on the bank's performance. Besides, it tries to investigate the leading causes of banks' poor performance, financial scams, Non-Performing Loans (NPLs) regarding the recent crisis understanding the feedback of bankers, depositors, and stakeholders. In this aspect, how corporate governance is practiced through ownership structure as well as how its loan policy is influenced by different ownership patterns is analyzed through a survey result conducted in State-Owned Commercial Banks (SOCBs) and Private Commercial Banks (PCBs) in Bangladesh. Thus, the main features of the existing corporate governance are identified, and some action plans are suggested in this paper to restore sound corporate governance in the banking sector of Bangladesh.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131099005","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":"Fintech and the Future of Financial Service: A Literature Review and Research Agenda","authors":"Haitian Lu, Bing-Zhong Wang, Qing Wu, Jing Ye","doi":"10.2139/ssrn.3600627","DOIUrl":"https://doi.org/10.2139/ssrn.3600627","url":null,"abstract":"The rise of Fintech in the past decade has received growing scholarly attention. This paper surveys Fintech-related articles published in leading finance, accounting, and management journals from 2010 to 2019. It aims to generate a taxonomy of Fintech and accumulate knowledge in the fields of text analytics, algorithmic trading, Fintech lending, blockchains, cryptocurrencies, and the use of artificial intelligence in financial services. Critical reflections are also presented, and future research agendas in Fintech are suggested. <br><br>","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128802448","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 Miner of Last Resort: Digital Currency, Shadow Money and the Role of the Central Bank","authors":"G. Steele","doi":"10.2139/ssrn.3600073","DOIUrl":"https://doi.org/10.2139/ssrn.3600073","url":null,"abstract":"Cryptocurrency arose, and grew in popularity, following the financial crisis of 2008 built upon a promise of decentralizing money and payments. An examination of the history of money and banking the United States demonstrates that stable money benefits from strict controls and commitments by a centralized government through chartering restrictions and a broad safety net, rather than decentralization. In addition, financial crises happen when government allows money creation to occur outside of official channels. The U.S. central bank is then forced into a policy of supporting a range of money-like assets in order to maintain a grip on monetary policy and some semblance of financial stability. \u0000 \u0000In addition, this chapter argues that cryptocurrency as a form of shadow money shares many of the problematic attributes of both the privately issued bank notes that created instability during the “free banking” era and the “shadow banking” activities that contributed to the 2008 crisis. In this sense, rather than being a novel and disruptive idea, cryptocurrency replicates many of the systemically destabilizing aspects of privately issued money and money-like instruments. \u0000 \u0000This chapter proposes that, rather than allowing a new, digital “free banking” era to emerge, the better alternative is a public model. Specifically, it argues that the Federal Reserve should use its tools to improve public payment systems, enact robust utility-like regulations for private digital currencies, and limit the likelihood of bubbles using macroprudential measures.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"179 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122089647","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}