Author: Gregory Alan KrohnPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 280
Book Description
Interest Rate Volatility and the Size of the Financial Sector
Author: Gregory Alan KrohnPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 280
Book Description
Interest rate volatility and the size ot the financial sector
Author: Gregory A. KrohnInternational Convergence of Capital Measurement and Capital Standards
Author: Publisher: Lulu.com
ISBN: 9291316695
Category : Bank capital
Languages : en
Pages : 294
Book Description
Bank Profitability and Risk-Taking
Author: Natalya MartynovaPublisher: International Monetary Fund
ISBN: 1513565818
Category : Business & Economics
Languages : en
Pages : 44
Book Description
Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering up to engage in risky ‘side activities’(such as market-based investments) alongside the core business. A more profitable core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk of given size. Consequently, more profitable banks may have higher risk-taking incentives. The framework is consistent with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis.
Financial Market Drift
Author: Lukas MenkhoffPublisher: Springer Science & Business Media
ISBN: 3642565816
Category : Business & Economics
Languages : en
Pages : 252
Book Description
International financial markets play an increasingly important role. There can be no doubt that over the past twenty years the size of financial markets have grown at a faster pace than the size of the markets for goods and services. However, it is still unclear whether this is a desirable development. This book discusses the debate on the possible separation of the financial sector and real economy. The text makes use of established scientific research.
Global Financial Stability Report, October 2019
Author: International Monetary Fund. Monetary and Capital Markets DepartmentPublisher: International Monetary Fund
ISBN: 1498324029
Category : Business & Economics
Languages : en
Pages : 109
Book Description
The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.
Global Financial Stability Report, April 2021
Author: International Monetary FundPublisher: International Monetary Fund
ISBN: 1513569678
Category : Business & Economics
Languages : en
Pages : 92
Book Description
Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies. Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.
Interest Rate Volatility and the Risk of Financial Institutions
Author: Sotiris K. StaikourasDeterminants of Bank Interest Margins in the Caucasus and Central Asia
Author: Raja AlmarzoqiPublisher: International Monetary Fund
ISBN: 148434281X
Category : Business & Economics
Languages : en
Pages : 29
Book Description
In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the Caucasus and Central Asia (CCA) over the period 1998–2013. We apply the dealership model of Ho and Saunders (1981) and its extensions to assess the extent to which high spreads of banks in the CCA can be related to bank-specific variables, to competition, and to macroeconomic factors. We find that interest spreads are affected by operating cost, credit risk, liquidity risk, bank size, bank diversification, banking sector competition, and macroeconomic policies; but the impact depends on the country.
Forecasting Interest Rates
Author: John B. SchwartzmanPublisher: McGraw-Hill Companies
ISBN: 9780070559677
Category : Business & Economics
Languages : en
Pages : 244
Book Description
Set up your own simple, one-page charts that track and assess interest rates and the factors affecting them--on a weekly, monthly, or quarterly basis. Determine, with a high degree of accuracy, in which direction the various trends influencing interest rates are likely to push them. Supplemented by a host of charts, graphs, examples, and illustrations, Forecasting Interest Rates allows you to spot the all-important events that cause interest rates to move--whether they're front-page news or subtle incidents. It shows you how to recognize a reliable interest rate factor from a red herring--whether the source is the Department of Commerce, the Department of Labor Statistics, the Federal Reserve Board, a university research center, or a nonprofit company specializing in business economic research.