Liquidity provision, banking, and the allocation of interest rate risk
Author : Martin F. Hellwig
Publisher :
Page : 61 pages
File Size : 30,55 MB
Release : 1993
Category :
ISBN :
International Convergence of Capital Measurement and Capital Standards
Author :
Publisher : Lulu.com
Page : 294 pages
File Size : 31,25 MB
Release : 2004
Category : Bank capital
ISBN : 9291316695
Book Description
Liquidity and Crises
Author : Franklin Allen
Publisher : Oxford University Press, USA
Page : 719 pages
File Size : 13,87 MB
Release : 2011-02-03
Category : Business & Economics
ISBN : 0195390717
Book Description
One important cause of the 2007-2009 crisis was illiquidity combined with exposure of many financial institutions to liquidity needs. But what is liquidity and why is it so important for financial institutions to command enough liquidity? This book brings together classic articles and recent contributions to this important field.
Liquidity Risk, Efficiency and New Bank Business Models
Author : Santiago Carbó Valverde
Publisher : Springer
Page : 319 pages
File Size : 28,81 MB
Release : 2016-09-10
Category : Business & Economics
ISBN : 331930819X
Book Description
This book provides insight into current research topics in finance and banking in the aftermath of the financial crisis. In this volume, authors present empirical research on liquidity risk discussed in the context of Basel III and its implications. Chapters also investigate topics such as bank efficiency and new bank business models from a business diversification perspective, the effects on financial exclusion and how liquidity mismatches are related with the bank business model. This book will be of value to those with an interest in how Basel III has had a tangible impact upon banking processes, particularly with regard to maintaining liquidity, and the latest research in financial business models.
Managing Elevated Risk
Author : Iwan J. Azis
Publisher : Springer
Page : 129 pages
File Size : 10,99 MB
Release : 2014-12-11
Category : Business & Economics
ISBN : 9812872841
Book Description
This book discusses the risks and opportunities that arise in Emerging Asia given the context of a new environment in global liquidity and capital flows. It elaborates on the need to ensure financial and overall economic stability in the region through improved financial regulation and other policy measures to minimize the emergent risks. "Managing Elevated Risk: Global Liquidity, Capital Flows, and Macroprudential Policy—An Asian Perspective" also explores the range of policy options that may be deployed to address the impact of global liquidity on domestic financial and socio-economic conditions including income inequality. The book is primarily aimed at policy makers, financial market regulators and supervisory agencies to help them improve national regulatory systems and to promote harmonization of national regulations and practices in line with global standards. Scholars and researchers will also gain important information and knowledge about the overall impacts of changing global liquidity from the book.
Reaching Out
Author :
Publisher : World Bank Publications
Page : 52 pages
File Size : 46,40 MB
Release : 2005
Category : Banks and banking, International
ISBN :
Book Description
"The authors (1) present new indicators of banking sector penetration across 99 countries based on a survey of bank regulatory authorities, (2) show that these indicators predict household and firm use of banking services, (3) explore the association between the outreach indicators and measures of financial, institutional, and infrastructure development across countries, and (4) relate these banking outreach indicators to measures of firms' financing constraints. In particular, they find that greater outreach is correlated with standard measures of financial development, as well as with economic activity. Controlling for these factors, the authors find that better communication and transport infrastructure and better governance are also associated with greater outreach. Government ownership of financial institutions translates into lower access, while more concentrated banking systems are associated with greater outreach. Finally, firms in countries with higher branch and ATM penetration and higher use of loan services report lower financing obstacles, thus linking banking sector outreach to the alleviation of firms' financing constraints. "--World Bank web site.
Liquidity Provision, Banking, and the Role of Monitoring
Author : Jianping Qi
Publisher :
Page : 37 pages
File Size : 37,58 MB
Release : 2000
Category :
ISBN :
Book Description
This paper makes a basic point that banks' focus on information-intensive loans that require monitoring enhances their ability to provide depositors with liquidity insurance. First, monitoring enables better risk sharing between bank depositors and more risk-tolerant bank borrowers by reducing lending rate constraints which, in the absence of monitoring, would be necessary for dealing with borrower moral hazard. Second, if lender monitoring is costly and unobservable, the need for such monitoring further strengthens the bank's ability to provide liquidity insurance by reducing the threat of destabilizing trades in an anonymous market. The analysis therefore suggests an important link between bank monitoring of its borrowers that creates illiquid loans and bank providing its depositors with valuable liquidity services.
Inside and Outside Liquidity
Author : Bengt Holmstrom
Publisher : MIT Press
Page : 263 pages
File Size : 41,23 MB
Release : 2013-01-11
Category : Business & Economics
ISBN : 0262518538
Book Description
Two leading economists develop a theory explaining the demand for and supply of liquid assets. Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can the state and international financial markets make up for a shortage of liquid assets, allowing agents to save and share risk more effectively? These questions are at the center of all financial crises, including the current global one. In Inside and Outside Liquidity, leading economists Bengt Holmström and Jean Tirole offer an original, unified perspective on these questions. In a slight, but important, departure from the standard theory of finance, they show how imperfect pledgeability of corporate income leads to a demand for as well as a shortage of liquidity with interesting implications for the pricing of assets, investment decisions, and liquidity management. The government has an active role to play in improving risk-sharing between consumers with limited commitment power and firms dealing with the high costs of potential liquidity shortages. In this perspective, private risk-sharing is always imperfect and may lead to financial crises that can be alleviated through government interventions.
Interbank Markets
Author : Álvaro J.B. Nascimento
Publisher :
Page : 51 pages
File Size : 30,62 MB
Release : 2001
Category :
ISBN :
Book Description
In this paper I present a dynamic model of banks' behaviour in interbank markets. Economic literature suggests that interbank markets are private arrangements to absorb transitory liquidity shocks and, therefore, offer a liquidity insurance contract to financial institutions. I examine the ability of interbank markets to allocate liquidity among banks, and analyze the potential systemic risks stemming frombilateral contracting for different maturities among banks. The paper attempts to shed some light on the real channels of risk contagion in the banking industry. The conclusions suggest that under certain circumstances the interbank markets may gridlock and fail to provide the desired liquidity insurance. Banks' strategic behaviour, when there is limited information on liquidity needs and on expected behaviour of the remaining banks, places the discussion in the game theory literature. The market outcome is shown to depend on the degree of information asymmetry, and on how each bank conjectures the remaining banks' reaction function.
Bank Liquidity Creation and Financial Crises
Author : Allen N. Berger
Publisher : Academic Press
Page : 296 pages
File Size : 20,75 MB
Release : 2015-11-24
Category : Business & Economics
ISBN : 0128005319
Book Description
Bank Liquidity Creation and Financial Crises delivers a consistent, logical presentation of bank liquidity creation and addresses questions of research and policy interest that can be easily understood by readers with no advanced or specialized industry knowledge. Authors Allen Berger and Christa Bouwman examine ways to measure bank liquidity creation, how much liquidity banks create in different countries, the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, the effects of bailouts, and much more. They also analyze bank liquidity creation in the US over the past three decades during both normal times and financial crises. Narrowing the gap between the "academic world" (focused on theories) and the "practitioner world" (dedicated to solving real-world problems), this book is a helpful new tool for evaluating a bank’s performance over time and comparing it to its peer group. Explains that bank liquidity creation is a more comprehensive measure of a bank’s output than traditional measures and can also be used to measure bank liquidity Describes how high levels of bank liquidity creation may cause or predict future financial crises Addresses questions of research and policy interest related to bank liquidity creation around the world and provides links to websites with data and other materials to address these questions Includes such hot-button topics as the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, and the effects of bailouts
