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Financial Services (financial + services)
Terms modified by Financial Services Selected AbstractsBUSINESS METHOD PATENTS AND U.S. FINANCIAL SERVICESCONTEMPORARY ECONOMIC POLICY, Issue 3 2010ROBERT M. HUNT A decade after the State Street decision, more than 1,000 business method patents are granted each year. Yet, only 1 in 10 is obtained by a financial institution. Most business method patents are also software patents. Have these patents increased innovation in financial services? To address this question, we construct new indicators of research and development intensity based on the occupational composition of financial industries. The financial sector appears more research intensive than official statistics would suggest but less than the private economy taken as a whole. There is considerable variation across industries but little apparent trend. There does not appear to be an obvious effect from business method patents on the sector's research intensity. Looking ahead, three factors suggest that the patent system may affect financial services as it has electronics: (1) the sector's heavy reliance on information technology, (2) the importance of standard setting, and (3) the strong network effects exhibited in many areas of finance. Even today litigation is not uncommon; we sketch a number of significant examples affecting financial exchanges and consumer payments. The legal environment is changing quickly. We review a number of important federal court decisions that will affect how business method patents are obtained and enforced. We also review a number of proposals under consideration in the U.S. Congress. (JEL O31, O34, G20) [source] Communication via responsibility reporting and its effect on firm value in FinlandCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 2 2010Hannu Schadewitz Abstract n this paper, we first analyzed the responsibility reporting literature with an emphasis on the linkage between responsibility reporting and a firm's performance and valuation. Based on the literature review, we developed a research question: How does communication via responsibility reporting affect firm value? We analyzed the market valuation of listed Finnish firms through a conventional valuation model combined with responsibility reporting. The starting point for our valuation was the Ohlson model. We expanded upon the conventional valuation by studying whether communication via responsibility reporting is related to firm valuation. Our research question is linked to the broader academic question of whether earnings worth as an information source has been erased over the last few years. In addition, we contribute to the literature that tries to understand the link between corporate social responsibility and firm performance/share performance. Specifically, we focused on responsibility reporting according to the Global Reporting Initiative (GRI) and especially on whether the existence of these reports provides a further explanation for firm value. Our sample was a population type that covered all listed Finnish firms that have adopted GRI. No other responsibility reporting practice was used by listed firms in their responsibility reporting communication during the years 2002,2005. The other necessary information for valuation models was obtained from Thomson Financial Services (commercial database). The applied model supported the conclusion that communication via GRI responsibility reporting is an important explanatory factor for a firm's market value. The result indicates that responsibility reporting is a part of a firm's communication tools in order to decrease information asymmetry between managers and investors. In other words, GRI responsibility reporting is called for in order to produce a more precise market valuation of a firm. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment. [source] The Retirement Boomerang: A New Vocabulary of Financial ServicesDESIGN MANAGEMENT REVIEW, Issue 1 2008Andrew Mackenzie CEO First page of article [source] The "End of Geography" in Financial Services?ECONOMIC GEOGRAPHY, Issue 4 2000Local Embeddedness, Territorialization in the Interest Rate Swaps Industry Abstract: This paper provides evidence that the globalization of financial services has not undermined the importance of local embeddedness in world financial centers, among global banks. Using qualitative data from interviews with senior bankers in the interest rate swaps (derivatives) industry in Australia, in this paper I demonstrate the importance of spatial relationships and processes of local embeddedness in the production of swaps. Local embeddedness is attributable to the rapid exchange of financial information in formal dealing networks that serve as central information sources, enabling dealers to formulate a "market feel" that influences their dealing strategies. Information interpretation and decision making in dealing processes and specialist financial labor provide the foundations for the product-based learning orientation of swaps dealing. Dealing networks are underpinned by social relationships, requiring face-to-face interaction that is facilitated by spatial proximity. Although the global swaps industry is dominated by multinational banks, the centrality of these embedded networks impedes globalization in interest rate swaps dealing. The global swaps industry comprises an international network of highly localized but interconnected operations based in world financial centers. [source] The Basic Analytics of Access to Financial ServicesFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2007Thorsten Beck Access to financial services, or rather the lack thereof, is often indiscriminately decried as problem in many developing countries. This paper argues that the "problem of access" should rather be analyzed by identifying different demand and supply constraints. We use the concept of an access possibilities frontier, drawn for a given set of state variables, to distinguish between cases where a financial system settles below the constrained optimum, cases where this constrained optimum is too low, and,in credit services,cases where the observed outcome is excessively high. We distinguish between payment and savings services and fixed intermediation costs, on the one hand, and lending services and different sources of credit risk, on the other hand. We include both supply and demand side frictions that can lead to lower access. The analysis helps identify bankable and banked population, the binding constraint to close the gap between the two, and policies to prudently expand the bankable population. This new conceptual framework can inform the debate on adequate policies to expand access to financial services and can serve as basis for an informed measurement of access. [source] One Approach to Formulating and Evaluating Student Work Groups in Legal Environment of Business CoursesJOURNAL OF LEGAL STUDIES EDUCATION, Issue 1 2007Joan E. Camara The principal focus of this study is an investigation of whether students' grade point average (GPA) is a viable criterion for forming student work groups in the undergraduate Legal Environment of Business course. More specifically, the research focuses on the impact of: (1) GPA-homogeneous (HO) and GPA-heterogeneous (HE) groups upon student satisfaction with group processes and (2) the impact on individual student performance in both group and nongroup assignments. Data obtained from fourteen HE and fourteen HO student groups, in four separate Legal Environment of Business classes consisting of a mix of Management, Marketing, Computer Information Systems, International Business, Financial Services, and Accounting majors, generated a number of significant results. The most surprising observations dealt with the behavior of low achievers whose individual grades showed substantial improvement after working in HO groups. Researchers who are assessing pedagogical methods which serve to engage a student's active learning and motivation should find these results to be of interest. In addition, the beneficial impact on task and relationship behaviors observed in this study should provide solace or a sense of reward to the larger set of academicians, across disciplines, who attempt to impart realistic organizational skills to their classes. [source] Developing Conceptualisations of Europeanisation: A Study of Financial ServicesPOLITICS, Issue 1 2004Kerry E. Howell In its most explicit form Europeanisation is conceptualised as the process of downloading European Union (EU) directives, regulations and institutional structures to the domestic level. However, this conceptualisation of Europeanisation has been extended in the literature in terms of up-loading to the EU shared beliefs, informal and formal rules, discourse, identities and vertical and horizontal policy transfer. This article undertakes a study of banking, investment and insurance directives to analyse the impact of Europeanisation on the UK financial services sector. [source] Conflicts of Interest in Financial ServicesBUSINESS AND SOCIETY REVIEW, Issue 2 2000John R. Boatright First page of article [source] BUSINESS METHOD PATENTS AND U.S. FINANCIAL SERVICESCONTEMPORARY ECONOMIC POLICY, Issue 3 2010ROBERT M. HUNT A decade after the State Street decision, more than 1,000 business method patents are granted each year. Yet, only 1 in 10 is obtained by a financial institution. Most business method patents are also software patents. Have these patents increased innovation in financial services? To address this question, we construct new indicators of research and development intensity based on the occupational composition of financial industries. The financial sector appears more research intensive than official statistics would suggest but less than the private economy taken as a whole. There is considerable variation across industries but little apparent trend. There does not appear to be an obvious effect from business method patents on the sector's research intensity. Looking ahead, three factors suggest that the patent system may affect financial services as it has electronics: (1) the sector's heavy reliance on information technology, (2) the importance of standard setting, and (3) the strong network effects exhibited in many areas of finance. Even today litigation is not uncommon; we sketch a number of significant examples affecting financial exchanges and consumer payments. The legal environment is changing quickly. We review a number of important federal court decisions that will affect how business method patents are obtained and enforced. We also review a number of proposals under consideration in the U.S. Congress. (JEL O31, O34, G20) [source] From Urban to Rural: Lessons for Microfinance from ArgentinaDEVELOPMENT POLICY REVIEW, Issue 3 2001Mark Schreiner The recent success of microfinance for the urban self-employed contrasts with decades of failure on the part of public development banks for small farmers. This article describes the ways in which rural microfinance organisations have tried to adapt the lessons of urban microfinance to manage the risks and control the costs of the supply of financial services in rural areas. It then asks whether the lessons of urban microfinance are likely to apply in the poorest rural areas of Argentina. The article concludes that microfinance is unlikely to improve access to small loans and small deposits for many of the rural poor in Argentina; distances are too great, farmers too specialised, and wages too high. Improved access depends not on targeting loans by government decree but on strengthening institutions that support financial markets. [source] The "End of Geography" in Financial Services?ECONOMIC GEOGRAPHY, Issue 4 2000Local Embeddedness, Territorialization in the Interest Rate Swaps Industry Abstract: This paper provides evidence that the globalization of financial services has not undermined the importance of local embeddedness in world financial centers, among global banks. Using qualitative data from interviews with senior bankers in the interest rate swaps (derivatives) industry in Australia, in this paper I demonstrate the importance of spatial relationships and processes of local embeddedness in the production of swaps. Local embeddedness is attributable to the rapid exchange of financial information in formal dealing networks that serve as central information sources, enabling dealers to formulate a "market feel" that influences their dealing strategies. Information interpretation and decision making in dealing processes and specialist financial labor provide the foundations for the product-based learning orientation of swaps dealing. Dealing networks are underpinned by social relationships, requiring face-to-face interaction that is facilitated by spatial proximity. Although the global swaps industry is dominated by multinational banks, the centrality of these embedded networks impedes globalization in interest rate swaps dealing. The global swaps industry comprises an international network of highly localized but interconnected operations based in world financial centers. [source] The Basic Analytics of Access to Financial ServicesFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2007Thorsten Beck Access to financial services, or rather the lack thereof, is often indiscriminately decried as problem in many developing countries. This paper argues that the "problem of access" should rather be analyzed by identifying different demand and supply constraints. We use the concept of an access possibilities frontier, drawn for a given set of state variables, to distinguish between cases where a financial system settles below the constrained optimum, cases where this constrained optimum is too low, and,in credit services,cases where the observed outcome is excessively high. We distinguish between payment and savings services and fixed intermediation costs, on the one hand, and lending services and different sources of credit risk, on the other hand. We include both supply and demand side frictions that can lead to lower access. The analysis helps identify bankable and banked population, the binding constraint to close the gap between the two, and policies to prudently expand the bankable population. This new conceptual framework can inform the debate on adequate policies to expand access to financial services and can serve as basis for an informed measurement of access. [source] The impact of the euro on Europe's financial marketsFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 3 2003Gabriele Galati This paper presents an overview of the impact of the introduction of the euro on Europe's financial structure over the first four years since the start of EMU. It analyzes changes in money markets, bond markets, equity markets and foreign exchange markets. Euro's role in originating or catalyzing trends has been uneven across the spectrum of financial markets. From the supply side, banks and investors in fixed income markets have become more focused on the characteristics of individual borrowers rather than the nationality of the issuer and have built up expertise to evaluate credit risk. European equity markets have also been affected by the enhanced ability of investors to build strategies with a pan-European perspective as prices increasingly reflected risk factors specific to industrial sectors rather than individual countries. On the borrower side, EMU has increased the attractiveness of market-based financing methods by allowing debt issuers to tap institutional portfolios across the euro area. Lower barriers to cross-border financial transactions have also increased the contestability of the market for financial services, be it at the wholesale or the retail level. The introduction of the euro has also highlighted the shortcomings of existing institutional structures and areas where excessive focus on narrowly defined interests may stand in the way of realizing the full potential benefits from the new environment. Diverging legal and institutional infrastructures and market practices can impede further financial market development and deepening. Hence, the euro has put a premium on cooperation between national authorities and institution as a means of achieving a more harmonized financial environment. The impact of EMU on depth in foreign exchange markets has been less clear-cut, as volatility, spreads, trading volumes and liquidity appear not to have changed in a substantial way. Overall, it seems that the new currency has made some progress towards the goal of becoming a currency of international stature that would rival that of the US dollar. However, a number of the necessary next steps towards achieving this goal are also among the trickiest to implement. [source] Valuing the Potential Transformation of Banks into Financial Service Conglomerates: Evidence from the Citigroup MergerFINANCIAL REVIEW, Issue 2 2000Jarrod Johnston G21/G22 Abstract The merger between Citicorp and Travelers Group on April 6, 1998 could have emitted two relevant signals for firms that provide financial services. The first signal is the endorsement by two prominent financial institutions that benefits from cross-selling of bank services with insurance services, brokerage services, and other financial services can be realized. The second signal is that regulators will allow the combination of commercial banking with insurance underwriting and full-service brokerage, paving a path for similar combinations in the future. We document a favorable share price response for commercial banks, insurance companies, and brokerage firms, which supports the argument that the merger sets a precedent for other combinations between banks and nonbank financial services that will facilitate cross-selling and efficiencies. [source] Financial Exclusion in Rural and Remote New South Wales, Australia: a Geography of Bank Branch Rationalisation, 1981,98GEOGRAPHICAL RESEARCH, Issue 2 2000N.M. Argent The provision of financial services in rural Australia is a significant public policy issue, reflected in the high level of media and political interest in the recent spate of branch closures. There are, however, many aspects of the current debate regarding the delivery of financial services to rural communities that are, at best, less than ideal and, at worst, erroneous. Using telephone directories for New South Wales, non-metropolitan bank branch listings for the period 1981 to 1998 were collated. A recategorisation of these data according to the Rural, Remote and Metropolitan Areas classification reveals, amidst a spatial realignment of financial service provision, that rural and remote New South Wales have been disproportionately affected by a relatively recent and concerted withdrawal of services. The research demonstrates that corporate-level responses to increased competition within the financial system are significantly more important in deciding rural access to banking services than local and regional population trends. Indeed, two-thirds of rural localities that have lost branches had experienced healthy population growth during the study period. In the wake of the post-deregulation reconfiguration of the bank branch network, the socio-economic marginalisation of rural communities is being compounded, a process of ,financial exclusion' recognised in other parts of the developed world. [source] Geography of Stock MarketsGEOGRAPHY COMPASS (ELECTRONIC), Issue 4 2009Dariusz Wójcik Geography matters for stock markets. Stock market actors and institutions do not just have to be somewhere, but where they are in relation to other actors and institutions has an effect on their behaviour and performance. Hence, the geography of stock markets is crucial to the spatial distribution of financial services and centres. On another level, the evolution and structure of stock markets involves a complex interplay of politics, technology, economy and culture, and can never be explained with economic models alone. Finally, stock markets do not just reflect economy and society, they influence how economy and society work. The current financial crisis only underscores the value of geography as a lens through which to view stock markets, and the significance of the latter in the world economy. [source] Back to basics: Learning about employee energy and motivation from running on my treadmillHUMAN RESOURCE MANAGEMENT, Issue 1 2005Theresa M. Welbourne Abstract In an effort to understand how to optimize employee energy at work, we borrow from the sports physiology literature to develop and test several concepts that have now been used in more than 75 large and small organizations (e.g., automobile firms, banks, hospitals, manufacturing, high technology, service businesses, financial services, and more). Our focus on employee energy led us to develop new measures and processes for our research. The resulting studies presented in this article test two hypotheses focusing on the link between employee energy, turnover, job performance, and job satisfaction. Consistent with what we know about athletic performance, we found that energy is an optimization construct and that variation in employee energy at work has detrimental consequences for performance and satisfaction. © 2005 Wiley Periodicals, Inc. [source] Other financial corporations: Cinderella or ugly sister of empirical monetary economics?INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2005K. Alec Chrystal Abstract This paper reports estimates of an econometric model of the determinants of OFCs' broad money holding and M4 lending to OFCs. This is of interest both as providing information about a component of UK money and credit aggregates and because it provides some evidence of the link between financial activity and growth of the real economy. We model the long-run equilibria for money holding and lending to this sector as being driven by GDP, wealth, the return to financial services and various interest spreads. The dynamics of OFCs' money and lending are shown to be interdependent. We then consider the evidence for interactions between OFCs and other sectors. Our results indicate that M4 lending to OFCs is significantly related to aggregate investment in the long run, but is largely unrelated to the spending of households. Copyright © 2005 John Wiley & Sons, Ltd. [source] Morgan Stanley Panel Discussion on Seeking Growth in Emerging Markets: Spotlight on ChinaJOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2005Financial Decision Makers' Conference The treasurer of McDonald's discusses investment opportunities in China with Morgan Stanley's chief economist and its head of investment banking in China. The consensus is that the economic outlook for the country is strong, subject to some concerns about the currency, and that ongoing reforms are expected to bring about greater stability and productivity. Progress in raising Chinese banks to international capital adequacy standards, and imposing transparency and accounting requirements, has been particularly impressive. McDonald's first went to mainland China in the early 1990s. Thanks to its success in attracting suppliers and local financing and partners, it now has 600 restaurants and an ambitious expansion plan. For other U.S. and overseas companies, China's position as a global manufacturing center, its R&D capabilities, and its potential consumer market will lead to acquisitions of local companies, joint ventures, and other forms of direct investment. China's accession into the World Trade Organization has also opened a number of sectors that were previously restricted to foreign investors, including financial services. [source] Linking Tax Refunds and Low-Cost Bank Accounts: Early Lessons for Program Design and EvaluationJOURNAL OF CONSUMER AFFAIRS, Issue 2 2004SONDRA G. BEVERLY This article describes a pilot program encouraging low-income workers to have their tax refunds directly deposited into low-cost bank accounts. Although the program did not lead to substantial saving in the short-term, it did seem to facilitate account ownership among the unbanked and to serve as a bridge to other financial services and products. Early lessons for the design and evaluation of related programs are discussed. [source] Emerging perspectives on customer relationships, interactions and loyalty in Irish retail financial servicesJOURNAL OF CONSUMER BEHAVIOUR, Issue 2 2006Deirdre O'Loughlin This paper presents the key findings in relation to current consumer perspectives on the role of relationships, the nature of loyalty and types of customer interaction from an in-depth qualitative consumer study of Irish retail banking. Although the literature proposes that the RM approach is particularly applicable to the financial services sector, the research findings identify key supply and demand-related changes within Irish financial services and raise questions as to the appropriateness of general RM theory to the current nature of interaction between consumers and their financial suppliers. Key customer factors such as low involvement, apathy and dissatisfaction have resulted in much apparent customer loyalty actually being spurious. More important for customers in this study was how convenient the bank was for their lifestyle. In an age in which increased depersonalisation and automation impact upon the nature of consumer-supplier interaction and service delivery, it would appear that the concepts of relationship and loyalty need to be fundamentally re-examined and their role and relevance within current retail financial services re-appraised. Copyright © 2006 John Wiley & Sons, Ltd. [source] The cost management edge for financial servicesJOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 3 2005Ashish Garg Holding down costs has long been a corporate objective, yet companies continue to struggle to find ways to generate better-quality information,either with the help of, or sometimes in spite of, the cost management tools already in place. But as a best-practices survey shows, cost management,when executed effectively,can be a key contributor to strategic goals. © 2005 Wiley Periodicals, Inc. [source] Liquidity constraints, access to credit and pro-poor growth in rural TanzaniaJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 7 2005Alex Winter-Nelson Small-scale farmers in developing countries may become trapped in poverty by lack of the liquidity needed to make profitable investments. Increased access to credit could generate pro-poor economic growth if poor households are otherwise liquidity-constrained and if liquidity-constrained households benefit from the new financial services. Using household data from rural Tanzania, this paper presents evidence that increased finance for liquidity-constrained households could generate pro-poor agricultural growth, but that general expansion of financial services to households that have no access to credit would not effectively target lower income households or households whose farm activities are liquidity-constrained. Copyright © 2005 John Wiley & Sons, Ltd. [source] Maintenance issues in the Web site development processJOURNAL OF SOFTWARE MAINTENANCE AND EVOLUTION: RESEARCH AND PRACTICE, Issue 2 2002M. Taylor Abstract There appears to be few actual case studies in academic or professional literature regarding the overall process of developing a company Web site and even fewer regarding the maintenance of company Web sites. In this paper, we examine the maintenance issues in the Web site development process based on detailed case studies in seven U.K. organizations from the engineering, financial services, retail, manufacturing and education sectors over a two year period. This research indicated that there are numerous issues in Web site design and construction that impact upon future Web site maintenance activities. In particular, this research examined the impact of dynamic Web site data, Web site structure, specific coding for different user groups/Internet browsers/navigators/Internet search engines, Web site documentation and Web site development and testing standards upon future Web site maintenance work. Copyright © 2002 John Wiley & Sons, Ltd. [source] PREPARE: seeking systemic solutions for technological crisis managementKNOWLEDGE AND PROCESS MANAGEMENT: THE JOURNAL OF CORPORATE TRANSFORMATION, Issue 2 2005Beverly J. DavisArticle first published online: 2 JUN 200 America's private sector faces an unprecedented challenge in the wake of the 9/11 terrorist attacks. For the first time in the nation's history, its business assets, workers, and critical infrastructures are on the front lines of the battlefield,key targets, and possibly pathways, for future attacks. With terrorism, unconventional declaration of war can be waged, chaos created, and borders crossed by attacking our information highways. Although the catastrophic 9/11 attacks shifted our attention to the United States, the fact remains that Internet attacks against private and public organizations around the world leapt 28% in the 6 months after 9/11. These attacks targeted technology, financial services, and power companies. In order to ,seek to understand our enemies', the PREPARE Model of Technological Crisis Management (TCM) along with the application of the Johari Window psychology model will offer business leaders techniques to increase awareness of potential threats to their businesses. The best practice TCM model, a model of continuous process and analysis, takes business cyber-security to a new level, not only identifying the risks and threats to businesses, but also assessing and creating systemic plans to respond to those risks. Copyright © 2005 John Wiley & Sons, Ltd. [source] The credit crunch , the right time for credit unions to strike?LEGAL STUDIES, Issue 1 2009Dr Nicholas Ryder The origins of the cooperative movement can be traced to the Rochdale Society of Equitable Pioneers in 1844, from which similar institutions emerged in Central Europe, the North American continent and the rest of the world. Modern credit unions evolved from these small cooperative societies and have developed into mainstream providers of financial services in many jurisdictions. However, credit unions in the UK have not made a similar impact. There are several factors that have limited their growth , an inadequate legislative framework, an ineffective credit union regulatory system, inappropriate development models, an over-reliance on state subsidies and a disunited movement. The aim of this paper is to re-examine these factors in light of the level of political support provided by the government since 1997. [source] Firm characteristics and location: The case of the institutional investment advisory industry in the United States, 1983,1996PAPERS IN REGIONAL SCIENCE, Issue 1 2000John E. Bodenman Institutional investment advisors; financial services; location Abstract. This article examines the locational dynamics of the institutional investment advisory industry in the United States, 1983,1996, focusing on the factors and firm characteristics that account for institutional investment management firms' location. The institutional investment advisory industry, one of the fastest growing industries in the financial services sector, includes firms that manage the securities portfolios of institutional clients (e.g., corporate pension funds) for a fee. Descriptive and logit analyses are used to identify, compare and contrast those factors and firm characteristics associated with firm location outside (versus inside) the traditional investment management core. The findings presented in this article diminish the notion that access to a skilled financial services labor pool and a high-quality and diversified transportation and communications infrastructure is only available in the traditional core. [source] MICROFINANCE REVOLUTION: ITS EFFECTS, INNOVATIONS, AND CHALLENGESTHE DEVELOPING ECONOMIES, Issue 1 2010Hisaki KONO F35; O19 "Microfinance revolution" is the term often applied to the successful expansion of small-scale financial services to the poor with high repayment records in developing countries. The present paper investigates the extent to which the microfinance revolution is truly revolutionary. More specifically, it explores the impact of microfinance institutions on the poor, the mechanisms underlying high repayment rates and their innovations, and the new challenges microfinance institutions are currently facing. Different from the existing published survey literature, we focus on current topics and attempt to show recent theoretical developments in a comprehensive manner using simplified models with very similar settings. We contend that microfinance is developing in a promising direction but has yet to reach its full potential. [source] THE GLOBAL BANK MERGER WAVE: IMPLICATIONS FOR DEVELOPING COUNTRIESTHE DEVELOPING ECONOMIES, Issue 4 2002GARY A. DYMSKI This paper reconsiders causes and implications of the global bank merger wave, especially for developing economies. Previous studies of the global bank mergers,that is, mergers between banks from different nations,had assumed that these combinations are efficiency-driven, and that the U.S. case defines the paradigm for all other nations' banking systems. This paper argues that the U.S. experience is unique, not paradigmatic, and that bank mergers are not efficiency-driven; instead, this merger wave has arisen because of macrostructural circumstances and because of shifts over time in banks' strategic motives. This paper argues that large, offshore banks often engage in cross-border mergers because they want to provide financial services to households and firms that have reached minimal threshold wealth levels. For developing economies, this suggests that cross-border acquisitions of local banks by offshore banks will have mixed effects; and it cannot be assumed that the net social impact is positive. [source] BANKS' DIVERSIFICATION, CROSS-SELLING AND THE QUALITY OF BANKS' LOANSTHE MANCHESTER SCHOOL, Issue 2009STEFANIA COSCI In this paper we model and empirically test the impact of banks' shift towards financial services on their screening activity and on the quality of their loans. We present a model where it is easier to sell services to positively evaluated loan applicants and we show that the larger the banks' income from services, the lower their optimal screening effort. This prediction is consistent with the empirical evidence based on a panel of European banks and showing that the quality of banks' loans decreases with the share of commission income (a proxy for income from services). [source] | |||||||||||||||||||||||||||||||