Monetary Economics: Financial System & Institutions eJournal最新文献

{"title":"Digital Greenbacks: A Sequenced 'TreasuryDirect' and 'FedWallet' Plan for the Democratic Digital Dollar","authors":"R. Hockett","doi":"10.2139/ssrn.3599419","DOIUrl":"https://doi.org/10.2139/ssrn.3599419","url":null,"abstract":"I propose means of immediately converting the Department of Treasury's existing 'TreasuryDirect' system of freely available transaction accounts into a publicly administered digital savings and payments platform. A platform of this type is an essential public utility in any commercial society such as our own. It is additionally growth-promoting inasmuch as growth-tracking GDP is a measure of transaction volume, while transaction volume is a function of more efficient and inclusive transacting. As Congress seeks means of streamlining the payments infrastructure in a time of pandemic-induced crisis, the Treasury route recommends itself as the fastest way to digitize payments for 95% of our citizens and business enterprises. I also map means of migrating the Treasury architecture to the Fed over time once the crisis is past – as the ‘Greenback’ paper dollar itself did in the late 19th and early 20th centuries – and include my draft Treasury Dollar Act as an Appendix.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128778649","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":"LIBOR-exit: How is the Financial World Preparing for the Death of a Benchmark?","authors":"Joseph Baron","doi":"10.2139/ssrn.3707077","DOIUrl":"https://doi.org/10.2139/ssrn.3707077","url":null,"abstract":"In 2017, the United Kingdom’s Financial Conduct Authority (FCA) announced that by the end of 2021 it would no longer compel banks to provide the information necessary to determine the London Interbank Offered Rate (LIBOR). The move responded to a rate manipulation scandal and an overall diminution in underlying transaction volume. LIBOR, the rate that banks say they would pay to borrow from one another, is published daily for a number of currencies and tenors. LIBOR is used as a reference rate for hundreds of trillions of dollars’ worth of financial documents,4 some of which did not contemplate a world without it. \u0000 \u0000As the financial world braces for the discontinuation of LIBOR, uncertain abounds. This paper delves into some of the measures taking place to attempt to smooth the transition to new reference rates.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131066346","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":"Influential Factors on Profitability of Islamic Banks: Evidence from Sudan","authors":"Ahmed Nourrein, Ahmed Nourrein Ahmed Mennawi, A. A. Ahmed","doi":"10.5539/ijef.v12n6p1","DOIUrl":"https://doi.org/10.5539/ijef.v12n6p1","url":null,"abstract":"Profitability of Islamic banks has a significant effect on banks current and future decisions that do not only associate with shareholders and management, but also for various types of stakeholders. Despite that, scholars are not yet in agreement on common determinants of profitability in banking industry. This study aims to investigate the effect of bank-specific and industry characteristics along with macroeconomic variable (the inflation) on the profitability of a sample of 10 Islamic banks in Sudan. The study applied descriptive statistics, Persons’ correlation and multiple regression analysis on secondary data in order to determine the relationships and degree of significant of the independent variables to profitability. The profitability has been measured by two models; as return on assets (ROA) and net profit margin (NMP). The results reveal that bank capitalization (EQTA), operational cost efficiency (OCOI), investment in short-term securities (SECA) and inflation (INF) variables are significantly affecting the profitability of Islamic banks in Sudan. In contrary, the deposit-size of the bank (as market share) is not a significant determinant of banks’ profitability. Furthermore, the results indicate that quality of credit loan (NPL) is highly significant to NPM, while it is insignificant to ROA.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116265085","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":"Malinvestment and Crisis-Emergent Asset Comovement: The Problem of Latent Correlation","authors":"Messaoud Chibane, A. Gabriel, Gabriel A. Giménez Roche","doi":"10.2139/ssrn.3593751","DOIUrl":"https://doi.org/10.2139/ssrn.3593751","url":null,"abstract":"The common fall of asset prices during crises and recessions implies that asset correlation is strong during these events, while not necessarily showing up during the boom phase of the business cycle. Using insights from the malinvestment cycle theory, we show that this shift in correlation is not just triggered by a crash-related shock. It is also the result of risk build-up induced by money-boosted malinvestment taking place during the boom. We provide a model where the probability of a crash increases with bank credit expansion during the growth phase, which hints at a “latent” build-up of asset correlation. Credit expansion feeds asset prices, but also widens a gap between future-oriented cash inflows and present-oriented cash outflows. As new credit widens this gap, asset valuation becomes more funding-based rather than cash flow-based. Therefore, default risk, and hence the probability of a crash, increases with credit expansion. A change in credit expansion cuts the asset price rise short and reveals the malinvestments in the economy. This process implies a “latent” build-up of asset correlation during the boom phase that becomes “effective” with the crash. Practitioners and policy-makers would thus benefit from adopting the insights of the malinvestment cycle theory to complement their ad hoc empirical findings and estimations.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"143 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127292591","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":"Institutional Diversity in Domestic Banking Sectors and Bank Stability: A Cross-Country Study","authors":"Christopher F. Baum, Caterina Forti Grazzini, Dorothea Schaefer","doi":"10.2139/ssrn.3603940","DOIUrl":"https://doi.org/10.2139/ssrn.3603940","url":null,"abstract":"This paper analyzes the causal relationship between institutional diversity in domestic banking sectors and bank stability. We use a large bank- and country-level unbalanced panel data set covering the EU member states’ banking sectors between 1998 and 2014. Constructing two distinct indicators for measuring institutional diversity, we find that a high degree of institutional diversity in the domestic banking sector positively affects bank stability. The positive relationship between domestic institutional diversity and bank stability is stronger in times of crisis, providing evidence that diversity can help to absorb both financial and real shocks. In particular, greater institutional diversity smooths bank earnings risk in times of crisis. Our results are economically meaningful and offer important insights to the ongoing economic policy debate on how to reshape the architecture of the banking sector.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"106 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132221198","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 RAROC Valuation Scheme for Loans and its Application in Loan Origination","authors":"B. Engelmann, Ha Pham","doi":"10.2139/ssrn.3589408","DOIUrl":"https://doi.org/10.2139/ssrn.3589408","url":null,"abstract":"In this article, a risk-adjusted return on capital (RAROC) valuation scheme for loans is derived. The critical assumption throughout the article is that no market information on a borrower’s credit quality like bond or CDS (Credit Default Swap) spreads is available. Therefore, market-based approaches are not applicable, and an alternative combining market and statistical information is needed. The valuation scheme aims to derive the individual cost components of a loan which facilitates the allocation to a bank’s operational units. After its introduction, a theoretical analysis of the scheme linking the level of interest rates and borrower default probabilities shows that a bank should only originate a loan, when the interest rate a borrower is willing to accept is inside the profitability range for this client. This range depends on a bank’s internal profitability target and is always a finite interval only or could even be empty if a borrower’s credit quality is too low. Aside from analyzing the theoretical properties of the scheme, we show how it can be directly applied in the daily loan origination process of a bank.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131563685","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":"Modeling of Economic Safety of Sustainable Nature Management Financial Support","authors":"Sergiy Petruha, M. Korolenko","doi":"10.21303/2613-5647.2020.001292","DOIUrl":"https://doi.org/10.21303/2613-5647.2020.001292","url":null,"abstract":"The study systematizes mutual influences and connections of the economic safety of bank sector functioning as a whole, bank activity (state and commercial) at the fund market and financial support of sustainable nature management, taking into account bank strategies “threading” by Sustainable development aims of UNO till 2030 of both own activity (concrete examples are given) and one of market agents of the nature-resource sector of the national economy, for which a financial-credit institution acts as a specific financial provider in the world of sustainable nature management and comprehensive development, taking into account the global ecologic initiative. There are given parallels in aim setting of supranational and national regulators in two opposite and at the same time complementary conceptions: “green economy” and “financial globalism”, expecting dynamism of unpredictability and inertia of global financial stability absence on the ecologically influenced stability of the economic dynamics. There are constructed correspondent econometric dependence models of a triad “financial safety of the bank sector – financial support stability – nature management sustainability” on variables – corporative equity and bond issue, using special methods and program environment Eviews and Statistica. It has been revealed, that the market of bonds and the one of equities differently react on changes of the economic dynamics – the equity issue volume, as opposite to corporative bond issue, doesn’t depend on nature management sustainability indices, and its financial support stability is not in the sphere of financial-economic parametrization, but in the political conjuncture, socio-psychological and mental transformation in the direction of economic subjects’ readiness to conducting ecologically and at the same time socially responsible business that needs modernization of the purpose orientation of safe bank strategies, taking correspondent anti-crisis arrangements by them for providing safety of their activity at the fund market under conditions of intensification of the COVID-19 pandemic influence. Obtained modeling results may be used by the National bank of Ukraine for actualizing the macroprudential policy, directed on elimination of system risks for preventing crises or diminution of losses from them by the system of financial stimulation of rational nature management.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114507664","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 Future of the Special Duty of Care in the Financial Sector – Perspectives from the Netherlands","authors":"D. Busch","doi":"10.2139/ssrn.3586931","DOIUrl":"https://doi.org/10.2139/ssrn.3586931","url":null,"abstract":"A clear trend is evolving as more and more banks and other financial institutions are being successfully sued before the civil courts of the Netherlands for breaches of their special duty of care (‘bijzondere zorgplicht’). Whereas it was initially mainly banks that had reason to worry about claims for damages based on a breach of the special duty of care, other financial institutions too are now having to take the possibility of such claims very seriously. Another factor is that the special duty of care owed by financial institutions now seems to apply not only in their dealings with retail clients but also in relation to non-retail clients that need protection. The author discusses the main developments relating to the special duty of care, leading to a consideration of how things may evolve in the future.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115919689","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 Effect of Credit Rationing, Creditworthiness, and Commitments on Commercial Loan Pricing: Theory and Empirical Evidence","authors":"Kenneth N. Daniels, Irvin W. Morgan, Norris L. Larrymore","doi":"10.2139/ssrn.3583337","DOIUrl":"https://doi.org/10.2139/ssrn.3583337","url":null,"abstract":"This paper examines whether U.S. commercial lenders are appropriately compensated on commitment loans under a constant spread, variable rate formula, during recessions. Using the Loan Pricing Corporation (LPC) DealScan database, for periods preceding, during, and following the 1990/91 and 2001 recessions, we test whether lenders employing constant spreads on loan commitments cover their credit risk. During recessions, we find that constant loan spreads do not adequately compensate lenders for exposure to weak creditworthy borrowers and that to maintain their risk-reward objectives, lenders rein in risk by raising rates on new borrowers and by reconstituting loan portfolios.","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131509588","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":"Handling Bad Debt of Credit Institutions – Experience from Vietnam Asset Management Company (VAMC)","authors":"Hoang Thanh Tung, Nguyen Thi Van Anh, Le Thi Bich Hoi","doi":"10.31014/aior.1992.03.02.222","DOIUrl":"https://doi.org/10.31014/aior.1992.03.02.222","url":null,"abstract":"Due to the impact of the global financial crisis, since 2010 Vietnam's economy began to decline, production and business activities of enterprises faced many difficulties leading to bad debt ratios at credit institutions tend to rise and having complicated movements. In order to stabilize the situation, in 2013, the State Bank established the Vietnam Asset Management Company (VAMC). VAMC's activities have brought about certain results in resolving bad debts of credit institutions. This study focuses on VAMC's bad debt handling activities from 2013 to 2018, draws on successful experiences as well as restrictions and recommends some recommendations to enhance bad debt handling efficiency of VAMC","PeriodicalId":275096,"journal":{"name":"Monetary Economics: Financial System & Institutions eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116759480","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}