Oecd Journal: Financial Market Trends最新文献

{"title":"Bank business models and the separation issue","authors":"A. Blundell-Wignall, P. Atkinson, Caroline Roulet","doi":"10.1787/FMT-2013-5JZB2RHK9B6J","DOIUrl":"https://doi.org/10.1787/FMT-2013-5JZB2RHK9B6J","url":null,"abstract":"The main hallmarks of the global financial crisis were too-big-to-fail institutions taking on too much risk with other people’s money while gains were privatised and losses socialised. It is shown that banks need little capital in calm periods, but in a crisis they need too much – there is no reasonable ex-ante capital rule for large systemically important financial institutions that will make them safe. The bank regulators paradox is that large complex and interconnected banks need very little capital in the good times, but they can never have enough in an extreme crisis. Separation is required to deal with this problem, which derives mainly from counterparty risk. The study suggests banks should be considered for separation into a ring-fenced non-operating holding company (NOHC) structure with ring-fencing when they pass a key allowable threshold for the gross market value (GMV) of derivatives, a case which is reinforced if the bank has high wholesale funding and low levels of liquid trading assets. The pricing of derivatives and repos would become more commensurate with the risks if the NOHC proposal were to be pursued as a unifying strategy for the different national approaches. Most of the objections to this structure are summarised and rebutted. Other national proposals for separation in Switzerland, the Volcker rule, the Vickers rule, and the Liikanen proposal are argued to be inferior to the ring-fenced NOHC proposal, on the grounds that empirical evidence about what matters for a safe business model is not taken properly into account. JEL classification: G01, G15, G18, G20, G21, G24, G28 Keywords: Financial crisis, derivatives, bank business models, distance-to-default, structural bank separation, banking reform, GSIFI banks","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115822855","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":"SMEs and the credit crunch: Current financing difficulties, policy measures and a review of literature","authors":"Gert D. Wehinger","doi":"10.1787/FMT-2013-5JZ734P6B8JG","DOIUrl":"https://doi.org/10.1787/FMT-2013-5JZ734P6B8JG","url":null,"abstract":"After a brief overview of current financing difficulties for SMEs and policy measures to support SME lending during the crisis,this article presents a literature review related to difficulties in SME’s access to finance during the crisis, against a background of a sharp decline in bank profitability and an erosion of bank capital that negatively affected lending. The articles reviewed are classified according to four main issues of interest:the impairment of the bank-credit channel and its economic effects;factors potentially attenuating the effect of a financial squeeze;the role of global banking in mitigating but also transmitting financial shocks; and,looking ahead,issues related to so-called “credit-less recoveries” that should be relevant in guiding policy makers in the current environment of financial deleveraging. All the results hold important implications for policy making given the bail-outs and the large injections ofliquidity by central banks during the crisis.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"74 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133822420","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":"Capital controls on inflows, the global financial crisis and economic growth: Evidence for emerging economies","authors":"A. Blundell-Wignall, Caroline Roulet","doi":"10.1787/FMT-2013-5JZB2RHKGTHC","DOIUrl":"https://doi.org/10.1787/FMT-2013-5JZB2RHKGTHC","url":null,"abstract":"The results of an IMF study on controls on capital inflows in emerging economies, using a probit regression approach, are first replicated and tested for stability. The IMF results, downplayed by the authors, have been used by others to suggest controls can be helpful in a crisis situation. However, the stability findings suggest the results are not sufficiently robust to make strong claims in this regard. The same 37 countries and the IMF capital control measures are then used in a panel regression study to examine the impact of capital inflows on annual real GDP growth around the Global Financial Crisis. The results between the pre-crisis and the crisis periods are inconsistent with the IMF study – finding that capital restrictions on inflows (particularly debt liabilities) are most useful in good times when inflows to emerging markets are strong and upward pressure on managed exchange rates and reserves accumulation is greatest. However, lower controls on bonds and on FDI inflows seem to be associated with better growth outcomes during the crisis period studied. These findings are more consistent with studies that see capital controls as part of exchange rate targeting policies and concerns about excess reserves accumulation. JEL Classification: C23, C25, F21, F43, G01 Keywords: Capital controls, economic growth, emerging economies, financial crisis","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127834364","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 investors and ownership engagement","authors":"S. Çelik, M. Isaksson","doi":"10.1787/FMT-2013-5JZ734PWTRKC","DOIUrl":"https://doi.org/10.1787/FMT-2013-5JZ734PWTRKC","url":null,"abstract":"This article provides a framework for analysing the character and degree of ownership engagement by institutional investors.It argues that the general term “institutional investor” in itself doesn’t say very much about the quality or degree of ownership engagement. It is therefore an evasive “shorthand” for policy discussions about ownership engagement. The reason is that there are large differences in ownership engagement between different categories of institutional investors. There are also differences in ownership engagement within the same category of institutional investors such as hedge funds, investment funds,etc. These differences arise from the fact that the degree of ownership engagement is determined by a number of different features and choices that together make up the institutional investor’s “business model”. When ownership engagement is not a central part of the business model,public policies and voluntary standards aiming to improve the quality of ownership engagement among institutional investors are likely to have limited effect. Based on an empirical overview of the relative sise of different categories of institutional investors, the article identifies a set of 7 features and 19 choices that in different combinations define the institutional investor’s business model. These features and choices are then used to establish a taxonomy for identifying different degrees of ownership engagement ranging from “no engagement” to “inside engagement”.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125266835","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":"Structural reform and supervision of the banking sector in France","authors":"Édouard Fernandez-Bollo","doi":"10.1787/FMT-2013-5K41Z8T3MRHG","DOIUrl":"https://doi.org/10.1787/FMT-2013-5K41Z8T3MRHG","url":null,"abstract":"The crisis has shown that there is no such thing as an optimal banking structure or model. The Liikanen report highlighted excessive risk taking and excessive reliance on short-term funding not matched with adequate capital protection. The French reform of the banking sector builds on this insight as well as the agreement reached by the Basel Committee on Banking Supervision and the European CRD 4 to foster financial stability. Risky speculative activity will have to be separated from the rest of the banking sector while taking into account the assets of the universal banking model. Further, the reform introduces a strong resolution framework and new macro-prudential powers. JEL Classification: G18; G38; G33; G32. Keywords: Banking system; bank supervision; bankruptcy; liquidation; systemic risk; macro-prudential policy.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122811110","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":"Bank lending puzzles","authors":"A. Blundell-Wignall, Caroline Roulet","doi":"10.1787/fmt-2013-5k40m1nz55wj","DOIUrl":"https://doi.org/10.1787/fmt-2013-5k40m1nz55wj","url":null,"abstract":"Banks are still dealing with historic losses buried in their balance sheets. As a result, the US economy is picking up only modestly and Europe is sinking further into recession, despite unprecedented low interest rates and policies to compress the term premium. The aim of this study is to explore the business activities of banks, with a special focus on their lending behaviour, and its responsiveness to unconventional monetary policy. The paper shows that deleveraging has been mainly via mark-to-market assets falling in value, and policy is now serving to reflate these assets without a strong impact on lending. A panel regression study shows that GSIFI banks are least responsive to policy. Non-GSIFI banks respond to the lending rate spread to cash rates, the spread between lending rates and the alternative investment in government bonds, and the distance-to-default (the banks solvency). The paper shows that better lending in the USA is a result of safer banks and a better spread to government bonds – yields on the latter are too attractive relative to lending rates in Europe. Finally, the paper comments on the problem of using cyclical tools to address structural problems in banks, and suggests which alternative policies would better facilitate a financial system more aligned with lending, trust and stability and less towards high-risk activities and leverage via complex products.\u0000JEL Classification: E50, E51, E52, E58, G20, G21, G24, G28.\u0000Keywords: Bank Lending, Bank business model, deleveraging, structural policy, unconventional monetary policy, distance to default, spreads, bank separation, GSIFI.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133218537","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":"Equity markets, corporate governance and value creation","authors":"M. Isaksson, S. Çelik","doi":"10.1787/FMT-2013-5K40M1NTMHZS","DOIUrl":"https://doi.org/10.1787/FMT-2013-5K40M1NTMHZS","url":null,"abstract":"This article provides both an analytical framework for the role of public policy in corporate governance and a description of the empirical context that influences the conditions for that policy. It underlines the importance of focusing on the overall economic outcome and, in particular, how rules and regulations impact the conditions for companies to grow and create value by accessing public equity markets. In terms of the empirical context, we point to fundamental changes in the functioning of equity markets that may call for a fresh look at the economic effectiveness of corporate governance regulations. Among other things, we document a dramatic shift in listings from developed to emerging markets over the last decade, which means that concentrated ownership at company level has become the dominant form of ownership in listed companies worldwide.We also discuss whether the lack of new listings of smaller companies in developed markets is related to excessive regulatory burdens and unintended consequences of a decade of profound stock market deregulation. The discussion about listings illustrates that corporate governance rules and regulations do not only affect companies that are already listed. From a policy perspective, it is equally important to assess the implications for unlisted companies that may, in the future, require access to public equity markets for growth and job creation. We also document how the lengthened and ever more complex chain of intermediaries between savers and companies may influence the efficiency of capital allocation and the willingness of investors to take an active long-term interest in the companies that they own. It is shown that institutional investors are a highly heterogeneous group and that their willingness and ability to engage in corporate governance primarily depend on the economic incentives that follow from their different business models, investment strategies and trading practices.We provide examples of how regulatory initiatives to increase shareholder engagement may have unintended consequences, and note that the diversity and complexity of the investment chain can render general policies or regulation ineffective. JEL Classification: G30, G32, G34, G38 Keywords: capital and ownership structure, corporate governance, initial public offerings, institutional investors, shareholders","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"208 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114315790","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":"Long-term investment, the cost of capital and the dividend and buyback puzzle","authors":"A. Blundell-Wignall, Caroline Roulet","doi":"10.1787/FMT-2013-5K41Z8T05L8S","DOIUrl":"https://doi.org/10.1787/FMT-2013-5K41Z8T05L8S","url":null,"abstract":"The paper argues that interest rates are at extremely low levels to support banks, and the search for yield has pushed the liquidity driven speculative bubble from real estate, derivatives and structured products markets into the corporate debt market. Equities have rallied strongly too. This asset cycle is certainly helping banks reduce hidden losses on illiquid securities and could also help reduce the cost of equity. But for this to occur at current bond yields would require an unrealistic bubble in equities. Markets are assuming that this transition from low to higher rates (more in line with nominal GDP) can be handled smoothly by policy makers, when in fact this may not be so. Extreme volatility would risk new financial fragility problems. The paper presents a panel model using more than 4 000 global companies and shows that the Capex decision in general depend on the cost of equity, the accelerator and uncertainty, whereas buybacks are driven mainly by the gap between the cost of equity and debt. Right now the incentive structure implied by very low interest rates, which may be sustained for a long time, together with tax incentives, works directly against longterm investment. Debt finance is cheap, while the cost of equity capital needed for risky long-term investment is still high. This combination provides a direct incentive for borrowing to carry out buybacks (de-equitisation). Noting that weak investment reduces potential GDP, the paper makes some policy suggestions. JEL Classification: G15, G32, G28, E52. Keywords: Long-term investment, interest rates, de-equitisation, cost of capital, dividend and buybacks, monetary policy.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114149446","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":"Developments in the value of implicit guarantees for bank debt: The role of resolution regimes and practices","authors":"Sebastian Schich, Byoung-Hwan Kim","doi":"10.1787/FMT-2012-5K4C7R8DVHVF","DOIUrl":"https://doi.org/10.1787/FMT-2012-5K4C7R8DVHVF","url":null,"abstract":"High values of implicit guarantees for bank debt can be taken as signalling the market’s expectation that public authorities will rescue the institution in question in times of severe financial distress. By the same token, declines in the measure would suggest a drop in the perceived likelihood of such a bailout, perhaps reflecting the availability of more effective failure resolution tools (although they could also reflect other factors such an improvement in the asset quality of banks).","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127497523","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 Asian economic and financial community","authors":"","doi":"10.1787/FMT-2012-5K49LCHCLCTD","DOIUrl":"https://doi.org/10.1787/FMT-2012-5K49LCHCLCTD","url":null,"abstract":"From its beginning, Asia has been an important region for the OECD in terms of its members and partners. While the region’s economic performance is still strong, structural reforms, underpinned by coherent macroeconomic polices, need to be put in place to maintain this positive momentum. This note focuses on three specific medium- to long-term issues that are important in shaping the future of the Asian economic and financial community: First, in the area of trade, the importance of measuring trade in value added terms; second, funding long-term investment, especially in infrastructure, and making these investments “greener”; third, regional financial cooperation in Asia that should become more solid and robust. Some further policy challenges are shortly addressed at the end where several areas of co-operation between the OECD and the Asian region are highlighted and further possibilities for joint work are briefly explored.","PeriodicalId":444795,"journal":{"name":"Oecd Journal: Financial Market Trends","volume":"2012 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130370111","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}