Profit Persistence in Large U.S. Bank Holding Companies PDF Download

Author: Karin Pafford Roland
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 40

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Book Description

Author: United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 616

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Book Description

Author: United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee
Publisher:
ISBN:
Category :
Languages : en
Pages : 616

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Book Description

Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 140

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Book Description

Author: Gerard Caprio
Publisher: World Bank Publications
ISBN:
Category : Bancos
Languages : en
Pages : 49

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Book Description
"Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of ownership, shareholder protection laws, and supervisory/regulatory policies on bank valuations. Except in a few countries with very strong shareholder protection laws, banks are not widely held, but rather families or the State tend to control banks. We find that (i) larger cash flow rights by the controlling owner boosts valuations, (ii) stronger shareholder protection laws increase valuations, and (iii) greater cash flow rights mitigate the adverse effects of weak shareholder protection laws on bank valuations. These results are consistent with the views that expropriation of minority shareholders is important internationally, that laws can restrain this expropriation, and concentrated cash flow rights represent an important mechanism for governing banks. Finally, the evidence does not support the view that empowering official supervisory and regulatory agencies will increase the market valuation of banks"--NBER website

Author: Larry D. Wall
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 52

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Book Description

Author: Lawrance L. Evans, Jr.
Publisher:
ISBN: 9781457856778
Category :
Languages : en
Pages : 94

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Book Description
"Too big to fail" is a market notion that the federal government would intervene to prevent the failure of a large, complex financial institution to avoid destabilizing the financial sector and the economy. Expectations of government rescues can distort investor incentives to properly price the risks of firms they view as too big to fail, potentially giving rise to funding and other advantages for these firms. This report reviewed the benefits that the largest bank holding companies (those with more than $500 billion in assets) have received from perceived government support. It examines how financial reforms have altered market expectations of government rescues and the existence or size of funding advantages the largest bank holding companies may have received due to perceived government support. Tables and figures. This is a print on demand report.

Author: United States Government Accountability
Publisher: CreateSpace
ISBN: 9781500711085
Category :
Languages : en
Pages : 96

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Book Description
"Too big to fail" is a market notion that the federal government would intervene to prevent the failure of a large, complex financial institution to avoid destabilizing the financial sector and the economy. Expectations of government rescues can distort investor incentives to properly price the risks of firms they view as too big to fail, potentially giving rise to funding and other advantages for these firms. GAO was asked to review the benefits that the largest bank holding companies (those with more than $500 billion in assets) have received from perceived government support. This is the second of two GAO reports on government support for bank holding companies. The first study focused on actual government support during the 2007-2009 financial crisis and recent statutory and regulatory changes related to government support for these firms. This report examines how financial reforms have altered market expectations of government rescues and the existence or size of funding advantages the largest bank holding companies may have received due to perceived government support. GAO reviewed relevant statutes and rules and interviewed regulators, rating agencies, investment firms, and corporate customers of banks. GAO also reviewed relevant studies and interviewed authors of these studies. Finally, GAO conducted quantitative analyses to assess potential "too-big-to-fail" funding cost advantages.

Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions and Consumer Protection
Publisher:
ISBN:
Category : Bank holding companies
Languages : en
Pages : 314

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Book Description

Author: Federal Federal Reserve
Publisher: CreateSpace
ISBN: 9781505421095
Category :
Languages : en
Pages : 44

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Book Description
The Federal Reserve has previously noted the importance of capital planning at large, complex bank holding companies (BHCs). Capital is central to a BHC's ability to absorb unexpected losses and continue to lend to creditworthy businesses and consumers. It serves as the first line of defense against losses, protecting the deposit insurance fund and taxpayers. As such, a large BHC's processes for managing and allocating its capital resources are critical not only to its individual health and performance, but also to the stability and effective functioning of the U.S. financial system. The Federal Reserve's Capital Plan Rule and the associated annual Comprehensive Capital Analysis and Review (CCAR) have emphasized the importance the Federal Reserve places on BHCs' internal capital planning processes, and on the supervisory assessment of all aspects of these processes, which is a key element of a supervisory program that is focused on promoting resiliency at the largest BHCs. These initiatives have focused not just on the amount of capital that a BHC has, but also on the internal practices and policies a firm uses to determine the amount and composition of capital that would be adequate, given the firm's risk exposures and corporate strategies as well as supervisory expectations and regulatory standards. BHCs have long engaged in some form of capital planning to address the expectations of shareholders, creditors, customers, and other stakeholders. The Federal Reserve's interest in and expectations for effective capital planning reflect the importance of the ongoing viability of the largest BHCs even under stressful financial and economic conditions. Robust internal capital planning can also help ensure that BHCs have sufficient capital in a broad range of future macroeconomic and financial market environments by governing the capital actions-including dividend payments, share repurchases, and share issuance and conversion- a BHC takes in these situations. The Federal Reserve's Capital Plan Rule requires all U.S.-domiciled, top-tier BHCs with total consolidated assets of $50 billion or more to develop and maintain a capital plan supported by a robust process for assessing their capital adequacy. CCAR is the Federal Reserve's supervisory program for assessing the capital plans. In 2013, CCAR covered 18 BHCs that participated in the 2009 Supervisory Capital Assessment Program (SCAP). The Federal Reserve's assessment of a BHC's capital planning process includes an evaluation of the risk-identification, -measurement, and -management practices that support the BHC's capital planning and stress scenario analysis, an assessment of stressed loss and revenue estimation practices, and a review of the governance and controls around these practices. The preamble to the Capital Plan Rule outlines the elements on which the Federal Reserve evaluates the robustness of a BHC's internal capital planning-also referred to as the capital adequacy process, or "CAP." This publication describes the Federal Reserve's expectations for internal capital planning at the large, complex BHCs subject to the Capital Plan Rule in light of the seven CAP principles. It expands on previous articulations of these supervisory expectations by providing examples of observed practices among the BHCs participating in CCAR 2013 and by highlighting those practices considered to be stronger or leading practices at these firms. In addition, it identifies practices that the Federal Reserve deems to be weaker, or in some cases unacceptable, and thus in need of significant improvement. However, practices identified in this publication as leading or industry best practices should not be considered a safe harbor. The Federal Reserve anticipates that leading practices will continue to evolve as new data become available, economic conditions change, new products and businesses introduce new risks, and estimation techniques advance further.