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Banking
Kinds of Banking Terms modified by Banking Selected AbstractsTHE COMPETITION COMMISSION INQUIRY INTO SME BANKINGECONOMIC AFFAIRS, Issue 4 2002Peter Freeman This article describes the current Fair Trading Act régime for complex monopoly investigations with particular reference to the Competition Commission's recent SME Banking Inquiry. There then follows a critique of aspects of the process and an outline of the market investigation régime in the proposed Enterprise Act with an assessment of likely changes this will make to investigations of this kind. [source] RECENT TRENDS IN AUSTRALIAN BANKINGECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue S1 2006KEITH HALL This paper discusses the performance of Australian banks over the past decade, focusing on the forces that have shaped bank strategies and outcomes. The robust Australian economy and associated demand for credit, particularly from the household sector, have been significant drivers of bank success. Intensifying competition in lending and deposits has also played a role, manifesting itself largely as price pressure, but also spurring product innovation and the easing of lending standards. While the combination of these forces has allowed bank balance sheets to grow rapidly, the sector has remained well capitalised and has low levels of non-performing assets. [source] The Regulatory State and Turkish Banking Reforms in the Age of Post-Washington ConsensusDEVELOPMENT AND CHANGE, Issue 1 2010Caner Bakir ABSTRACT The new era of the Post-Washington Consensus (PWC), promoted under the auspices of International Financial Institutions such as the International Monetary Fund and the World Bank, centres on the need to develop sound financial regulation and strong regulatory institutions, especially in the realm of banking and finance in post-financial crisis developing countries. This article uses an examination of the Turkish banking sector experience with the PWC in the aftermath of the 2001 financial crisis to show its considerable strengths and weaknesses. The authors argue that the emergent regulatory state in the bank-based financial system has a narrow focus on strengthening prudential regulation, whilst ignoring the increased ,financialization' of the Turkish economy. They identify the positive features of the new era of the PWC in terms of prudential regulation, which has become much more robust in its ability to withstand external shocks. At the same time, however, the article highlights some of the limitations of the new era which resemble the limitations of the PWC. These include the distributional impact of the regulatory reforms within the banking sector, and notably the emergence of foreign banks as the major beneficiaries of this process; weaknesses in promoting productive bank intermediation that finance the real economy and economic growth, leading to poverty reduction via growth of employment whilst stimulating financialization within the economy; and finally, the exclusive focus on prudential regulation, whilst ignoring regulatory costs, consumer protection and competition regulation. [source] Competition and Profitability in European Banking: Why Are British Banks So Profitable?ECONOMIC NOTES, Issue 3 2005David T. Llewellyn Substantial differences remain between the profitability of banks in different European countries. This article considers the relationship between competition and profitability in European banking focussing on the experience of the UK where two issues are considered: why British banks have been earning excess returns for more than a decade and why British banks seem to be more profitable than their Continental counterparts. A paradigm is offered to explain this. A distinction is made between shareholder value (SHV) and stakeholder value (STV) banks whose business objectives are often different. Significant differences exist between European countries in the balance of SHV and STV banks. The UK is almost unique in Europe in having almost exclusively SHV-based banks. Pressures will intensify for all European banks to adopt SHV strategies, which will imply substantial changes in bank strategies and business operations. [source] Universal Banking, Asset Management, and Stock UnderwritingEUROPEAN FINANCIAL MANAGEMENT, Issue 4 2009William C. Johnson G24 Abstract This paper examines institutions that underwrite IPOs and have asset management divisions from 1993 through 1998. We provide evidence that these firms use asset management funds as vehicles to help them earn more equity underwriting business. We also show that asset managers affiliated with IPO underwriters use their superior information about their own institution's IPOs to earn annualised market adjusted returns 7.6% above asset managers of firms who did not underwrite the IPO. Superior future returns by asset managers who trade affiliated IPOs are dependent on the information environment for the IPO and the underwriter reputation rank. [source] The Effect of Removing Geographic Restrictions on Banking in the United States: Lessons for Europe,FINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 1 2008Randall S. Kroszner In this paper the author argues that cross-border, intra-European bank mergers are likely to generate benefits similar to those enjoyed in the United States when interstate banking restrictions were removed. These benefits include greater banking efficiency, higher economic and employment growth, more entrepreneurial activity, and reduced economic volatility. [source] Alternative Forms of Mixing Banking with Commerce: Evidence from American HistoryFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2003Joseph G. Haubrich Much of the discussion about banking and commerce in America has failed to make several crucial distinctions and has not accounted for many arrangements that have promoted the mixing of these activities. We investigate the history of banking and commerce in the United States, looking both at bank control of commercial firms and commercial firms' control of banks. We trace how these controls have changed with shifting definitions of "bank" and changing methods of "control." Despite the regulations prohibiting some arrangements that promote financial control, we find evidence of extensive linkages between banking and commerce in the United States. These linkages usually build on devices that are very close substitutes to the arrangements prohibited by law. Altogether, our findings question the often made claim that traditionally banking in the United States has been separated from commerce. Furthermore, given that research on Japan and Germany has shown that the mixing of banking and commerce matters for a variety of issues, our evidence also raises some questions on similar research in the United States which makes the simplifying assumption that these industries are separated. [source] The Defensive Expansion Approach to Multinational Banking: Evidence to DateFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2002Barry Williams First page of article [source] Banking and Currency Crisis and Systemic Risk: A Taxonomy and ReviewFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2000George G. Kaufman First page of article [source] Tailored for Panama: Offshore Banking at the Crossroads of the AmericasGEOGRAFISKA ANNALER SERIES B: HUMAN GEOGRAPHY, Issue 1 2002Barney Warf With the steady integration of a deregulated world of hypermobile capital, offshore banking has become an increasingly significant part of the geography of international finance. Many interpretations tend to treat offshore banking centres as identical sites of investment that can be easily substituted for one another by completely mobile, fungible capital. This paper explores the nature of offshore banking in one largely overlooked centre, Panama. It charts the historic context that led to the creation of Latin America's most important centre of international banking, emphasizing the unique qualities that stand in contrast to hyperglobalist interpretations, including the Canal and the role of the US dollar. Second, it summarizes the regulatory changes initiated in the face of global neoliberalism, including the absence of a central bank and recent reforms designed to attract foreign capital. Using primary and secondary data, the paper maps Panama's growing role as a net capital exporter, charting domestic and foreign loan markets. Finally, it also addresses the trade,offs between confidentiality, and transparency in the context of illicit activities frequently alleged to occur in offshore banking centres, which in Panama revolve around drug trafficking and money laundering. It concludes by noting that even in an ostensibly seamless world, offshore banking exhibits the place,based embeddedness of financial capital within local institutional relations. [source] Competition Tests with a Non-Structural Model: the Panzar,Rosse Method Applied to Germany's Savings BanksGERMAN ECONOMIC REVIEW, Issue 1 2009Horst Gischer Banking; competition; market behaviour Abstract. In this paper we adopt the Panzar,Rosse approach to assess the competitive conditions in the German banking market for the period from 1993 to 2002. We suggest several improvements to the empirical application of the approach and show that frequently used empirical models that apply price rather than revenue functions lead to biased results. Using disaggregated annual data from more than 400 savings banks (Sparkassen) the empirical findings indicate monopolistic competition, the cases of monopoly and perfect competition are strongly rejected. Furthermore, small banks seem to enjoy even more market power than larger institutions. [source] The Politics of Banking in Romania: Soft Loans, Looting and Cardboard BillionairesGOVERNMENT AND OPPOSITION, Issue 3 2004Lucian Cernat In this article attention is focused on the features of the emerging Romanian banking system, its failures, and their determinants. These failures were either politically driven or simply a result of the weak regulatory capacity of the state (as the owner of the banks) and lax monitoring from the central bank, as the central authority entrusted with the responsibility to maintain a well-functioning banking system. The reluctance of various governments, regardless of their political orientation, to apply sanctions against banks that are in trouble until the last possible moment encourage excessive risk-taking when banks first encounter financial difficultics, and asset-stripping when the insiders realize that a bank's continued viability is in jeopardy. Based on a number of case studies, the article argues that, in post-1989 Romania, insider trading, self-loans and blunt theft appeared more as systemic features rather than isolated incidents. [source] Can Central Banking Survive the IT Revolution?INTERNATIONAL FINANCE, Issue 2 2000Charles A. E. Goodhart First page of article [source] Monetary Policy Implementation: Past, Present and Future , Will Electronic Money Lead to the Eventual Demise of Central Banking?INTERNATIONAL FINANCE, Issue 2 2000FreedmanArticle first published online: 16 DEC 200 This paper examines the ways in which central banks influence the very short-term interest rate in regimes with and without reserve requirements. It then examines the implications for monetary policy implementation of the spread of electronic money and the potential for other mechanisms to compete with settlement arrangements at central banks. It concludes that it is extremely unlikely that electronic money will displace bank notes or the settlement services that are offered by central banks in the foreseeable future. Moreover, even in the extremely unlikely case that the spread of stored-value cards leads to the elimination of bank notes and that the development of network money permits alternative settlement services to be offered that effectively competes with central bank services, central banks would very likely be able to continue to influence the very short-term rate of interest. They would therefore be able to maintain their influence over aggregate demand and inflation even in such circumstances. [source] Banking reform in India and ChinaINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 3 2001Lawrence Sáez Abstract This paper analyzes the important process about financial reform in the area of bank illiquidity in low-income emerging markets. This process is taking place within the context of a debate as to whether or not governments should try to rehabilitate existing state-owned banks or allow a new or parallel banking system to emerge in order to reduce non-performing assets from state-owned commercial banks. A comparison of institutional development in China and India suggests that new entry rather than the rehabilitation approach may work more favorably to reduce non-performing assets. The paper offers an explanation as to why governments choose rehabilitation over new entry. Copyright © 2001 John Wiley & Sons, Ltd. [source] Switching Between the Banking and Metals and Mining Sectors of Australia,INTERNATIONAL REVIEW OF FINANCE, Issue 4 2009Tariq Haque ABSTRACT Using the Australian banking and metals and mining industries as the categories in the Barberis and Shleifer model, this study demonstrates switching in the Australian stock market. Switching occurs when investors move into an industry by selling off stocks of an alternate industry, thus causing negative lagged cross-correlation between those industries. Our results, based on daily returns, suggest that category-level investor sentiment may drive observed switching patterns in the Australian stock market and not fundamental risk factors. Our results also show that switching does not necessarily only occur between value and growth stocks or large-cap and small-cap stocks. [source] Cost Efficiency in South Asian Banking: The Impact of Bank Size, State Ownership and Stock Exchange Listings,INTERNATIONAL REVIEW OF FINANCE, Issue 1-2 2007SHRIMAL PERERA ABSTRACT This study examines the cost efficiency performance of 111 commercial banks in Bangladesh, India, Pakistan and Sri Lanka over 1997,2004. The primary focus is to assess whether bank size, state ownership and stock exchange listing have significant effects on South Asian banks' efficiency performance. To this end, a translog-form composite-error cost efficiency model, which allows for exogenous environmental influences, is estimated. The results indicate that the overall efficiency of South Asian banks declined over 1997,2004. Larger banks and banks with widespread ownership through stock exchange listings were found to be relatively more cost efficient. In contrast, state-owned banks were less efficient. [source] Branch Network and Modular Service Optimization for Community BankingINTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH, Issue 5 2002G. Ioannou In the information society, what is clearly changing is the role and image of bank branches in order to satsify in a more efficient way customers' needs. This paper develops an integrated approach to assist the bank's management in reconfiguring a branch network according to the dictates of the market. We are seeking the optimum number of branches and the optimum mix of services that each branch should offer in order to maximize the revenue,generating measures of the branches within a community. The problem is modeled using a linear program that accounts for community performance as a function of performance variables that are explained by a set of external and internal factors, which reflect community characteristics and modular branch banking parameters, respectively. The relationships between factor and performance variables are identified using regression analysis. An iterative algorithm allows convergence to a solution that provides the best configuration of branches after all possible branch mergers and modular branch adjustments are accomplished. [source] Rural Banking and Landless Labour Households: Institutional Reform and Rural Credit Markets in IndiaJOURNAL OF AGRARIAN CHANGE, Issue 4 2002V.K. Ramachandran Financial liberalization is a key component of programmes of orthodox structural adjustment. Financial reforms include, among other things, the removal of controls on interest rates and the abolition of programmes of directed credit. Here the effect of financial sector reform on rural banking and rural credit transactions in India is examined, with particular reference to landless labour households. First, the trends in selected indicators of rural banking at the national level over the last 30 years are reviewed. Secondly, longitudinal data for a village in Tamil Nadu are used to examine changes in patterns of indebtedness and credit transactions among landless labour households. It is argued that the exploitation of landless labour households in the credit market has intensified with the introduction of financial reforms. Lastly, the policy envisaged as an alternative to the formal credit sector in the countryside , the establishment of micro,credit projects , is examined critically. [source] FINANCE/MARKETS: NIGERIA: Ongoing Banking ReformsAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 7 2010Article first published online: 1 SEP 2010 No abstract is available for this article. [source] AFRICA,CHINA: Banking with the DragonAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 9 2009Article first published online: 2 NOV 200 No abstract is available for this article. [source] An Examination of the Equity Market Response to The Gramm-Leach-Bliley Act Across Commercial Banking, Investment Banking, and Insurance FirmsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2006H. Semih Yildirim Abstract:, This paper examines the wealth effects of the events surrounding the passage of the Gramm-Leach-Bliley Act of 1999 and changes in systematic risk from the pre-Act period to the post-Act period for commercial banks, investment banks, and insurance firms. The results suggest that investment banks and insurance firms are better positioned to exploit the benefits of product-line diversification opportunities allowed by the legislation compared to commercial banks that experience no significant market reaction. Further evidence indicates a significant risk shift and overall reduction in riskiness for the financial sectors under consideration around the event period. [source] Dependent and Accountable: Evidence from the Modern Theory of Central BankingJOURNAL OF ECONOMIC SURVEYS, Issue 5 2000Gustavo Piga In this paper we take another look at the literature on central bank independence. We show that the representative-agent approach to monetary policy is seriously flawed and does not provide a sound basis for deriving institutional solutions to the inflationary-bias. We then argue that the political approach to monetary policy provides a better account of the inflationary-bias and that this has important implications for the set-up of institutional arrangements, like central-bank independence, and the role of contractual arrangements, like indexation. Central bank independence, if appropriately modeled, can fail to reduce inflationary pressures in plausible circumstances. We then identify some issues in the theory of central banking that have not been clearly resolved and we offer some intuition as to the way they could be studied. We conclude by showing some potentially worrisome implications for the future of the European Monetary Union. [source] Strategic and Queue effects on Entry in Spanish BankingJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 4 2001Lucio Fuentelsaz This paper analyzes the factors that influence entry and geographic diversification decisions, a topic of special strategic interest in a context of growing globalization. The empirical model we propose is tested in a framework, the Spanish savings-bank market,where recent deregulation has eliminated the legal barriers to entry. Our results show two important conclusions for the evolution of the effects of branching deregulation in Europe and the US. First, it seems that entry in new geographical markets has been impeded by the strategic interactions between entrants and incumbents. Second, savings banks exhibit a preference for closer locations at the time of expanding, which may have undermined the effects of deregulation and its potential benefits for consumers. [source] Credit Reporting, Relationship Banking, and Loan RepaymentJOURNAL OF MONEY, CREDIT AND BANKING, Issue 8 2007MARTIN BROWN credit market; information sharing; relationship banking How does information sharing between lenders affect borrowers repayment behavior? We show,in a laboratory credit market,that information sharing increases repayment rates, as borrowers anticipate that a good credit record improves their access to credit. This incentive effect of information sharing is substantial when repayment is not third-party enforceable and lending is dominated by one-shot transactions. If, however, repeat interaction between borrowers and lenders is feasible, the incentive effect of credit reporting is negligible, as bilateral banking relationships discipline borrowers. Information sharing nevertheless affects market outcome by weakening lenders' ability to extract rents from relationships. [source] Groundwater Banking in Aquifers that Interact With Surface Water: Aquifer Response Functions and Double-Entry Accounting,JOURNAL OF THE AMERICAN WATER RESOURCES ASSOCIATION, Issue 6 2009Bryce A. Contor Contor, Bryce A., 2009. Groundwater Banking in Aquifers That Interact With Surface Water: Aquifer Response Functions and Double-Entry Accounting. Journal of the American Water Resources Association (JAWRA) 45(6):1465-1474. Abstract:, Increasing worldwide demands for water call for mechanisms to facilitate storage of seasonal supplies and mechanisms to facilitate reallocation of water. Markets are economically efficient reallocation and incentive mechanisms when market conditions prevail, but special hydrologic and administrative conditions of water use and allocation interfere with required market conditions. Water banking in general can bring market forces to bear on water storage and reallocation, improving economic efficiency and therefore the welfare of society as a whole. Groundwater banking can utilize advantages of aquifers as storage vessels with vast capacity, low construction cost, and protection of stored water. For groundwater banking in aquifers that interact with surface water, an accounting system is needed that addresses the depletion of stored volumes of water as water migrates to surface water. Constructing such a system requires integration of hydrologic, economic, and legal principles with principles of financial accounting. Simple mass-balance accounting, even with allowances for depletion, is not adequate in these aquifers. Aquifer response functions are mathematical descriptions of the impact that aquifer pumping or recharge events have upon hydraulically connected surface water bodies. Double-entry accounting is a financial accounting methodology for tracking asset inventories and ownership claims upon assets. The powerful innovation of linking aquifer response functions with double-entry accounting technologies allows application of groundwater banking to aquifers where deposits can be depleted by migration to hydraulically connected surface water. It honors the hydrologic realities of groundwater/surface water interaction, the legal requirements of prior appropriation water law, and the economic requirements for equitable and efficient allocation of resources. [source] Developments in Islamic Banking: The Case of Pakistan , By M. Mansoor Khan and M. Ishaq BhattiASIAN POLITICS AND POLICY, Issue 2 2010Fadillah Mansor No abstract is available for this article. [source] Stress Testing of Financial Industries: A Simple New Approach to Joint Stress Testing of Korean Banking, Securities, and Non-Life Insurance Industries,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 4 2009Kook-Hyun Chang Abstract This paper proposes a simple joint stress testing model useful in studying the effects of specific stress scenarios on a financial sector. In doing so, we adopt the principal component analysis (PCA) as a main device to interpret various financial information contained in figures and numbers on a financial company. We repeat the principal component analysis across different levels from individual company to a financial industry, and eventually to a financial sector as a whole to derive a financial sector risk index. We then link the sector risk index with stress macro variables, which constitute a much simpler task than devising individual models for each financial components. Once a relationship is established, a joint stress test is conducted by repeating PCA conversely. As a sample of stress scenario in the paper, we use the case of the 2003 credit card distress. We find that securities industry is more sensitive to market stresses than two other industries-bank and insurance-and that financial institutions in such a stress-sensitive industry are, consequently, more affected by the stresses than those in other industries. Despite the simplicity of the proposed model, this model is expected to provide substantial information, particularly for financial supervisors without having to build a complicated joint stress testing model. [source] X-Efficiency and Productivity Change in Australian BankingAUSTRALIAN ECONOMIC PAPERS, Issue 2 2004Penny Neal This paper investigates X -efficiency and productivity change in Australian banking between 1995 and 1999 using Data Envelopment Analysis (DEA) and Malmquist productivity indexes. It differs from earlier studies by examining efficiency by bank type, and finds that regional banks are less efficient than other bank types. The study concludes that diseconomies of scale set in very early and hence are not a sufficient basis on which to allow mergers between large banks to proceed. Total factor productivity in the banking sector was found to have increased by an average annual 7.6 per cent between 1995 and 1999. All of the productivity increase was due to technological advance shifting out the frontier. The banking sector's performance was less efficient relative to the frontier in 1999 than it had been in 1995. [source] Autism Brain Tissue BankingBRAIN PATHOLOGY, Issue 4 2007Vahram Haroutunian PhD One avenue of progress toward understanding the neurobiological basis of autism is through the detailed study of the post-mortem brain from affected individuals. The primary purpose of autism brain tissue banking is to make well-characterized and optimally preserved post-mortem brain tissue available to the neuroscience research community. In this paper we discuss our current understanding of the criteria for optimal characterization and preservation of post-mortem brain tissue; the pitfalls associated with inadequate clinical and neuropathological characterization and the advantages and disadvantages of post-mortem studies of the brain. We then describe the current status of the brain tissue bank supported by the Autism Tissue Program, including the demographic characteristics of the tissue donors, post-mortem interval, sex, age and the method of preservation. Finally, we provide information on the policies and procedures that govern the distribution of brain specimens by this bank and the nature of the studies that are currently being supported directly by this program. [source] | |||||||||||||||||||||||||||||||||||||||||||