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Author: Tobias Adrian Publisher: DIANE Publishing ISBN: 1437930905 Category : Business & Economics Languages : en Pages : 35
Book Description
This is a print on demand edition of a hard to find publication. The financial crisis of 2007-09 highlighted the changing role of financial institutions and the growing importance of the ¿shadow banking system,¿ which grew out of the securitization of assets and the integration of banking with capital market developments. In a market-based financial system, banking and capital market developments are inseparable, and funding conditions are tied closely to fluctuations in the leverage of market-based financial intermediaries. This report describes the changing nature of financial intermediation in the market-based financial system, charts the course of the recent financial crisis, and outlines the policy responses that have been implemented by the Fed. Reserve and other central banks. Charts and tables.
Author: Tobias Adrian Publisher: DIANE Publishing ISBN: 1437930905 Category : Business & Economics Languages : en Pages : 35
Book Description
This is a print on demand edition of a hard to find publication. The financial crisis of 2007-09 highlighted the changing role of financial institutions and the growing importance of the ¿shadow banking system,¿ which grew out of the securitization of assets and the integration of banking with capital market developments. In a market-based financial system, banking and capital market developments are inseparable, and funding conditions are tied closely to fluctuations in the leverage of market-based financial intermediaries. This report describes the changing nature of financial intermediation in the market-based financial system, charts the course of the recent financial crisis, and outlines the policy responses that have been implemented by the Fed. Reserve and other central banks. Charts and tables.
Author: Marc S. Schaffer Publisher: ISBN: Category : Languages : en Pages : 130
Book Description
In the wake of our country's greatest financial crisis since the Great Depression, the need to better understand the risks and behaviors associated with financial intermediaries has become apparent. In particular, the literature distinguishes between traditional or depository based financial intermediaries and their market based or non depository counterparts. This dissertation focuses on understanding the behavioral differences across these two groups by examining their equity based risk differences, their stock market delisting differences, and lastly how these firms react to economic policy uncertainty. The first essay uses an equity based approach to quantify the average firm level risk that is associated with these intermediary groups. While these intermediaries, at times, demonstrate similar risk behaviors, the market based financial intermediaries display a distinct ten year period of greater risk beginning in 1994. Since the 1980s there has been a trend of increasing financial market instability that is commonly attributed to increasing competition, securitization, and deregulation. Using a historical decomposition approach, I analyze which of these factors best explains the changing relative risk behaviors across the traditional and market based intermediaries. The most important factor in driving these behaviors was deregulation, with competition also having a significant impact. The second essay examines the stock market survival behavior of each of these respective groups and the role that risk plays in explaining delisting due to firm failure, as well as merger and acquisition activity. Using survival analysis, the delisting behavior of these intermediaries is examined where the market based firms are more likely to delist relative to the traditional firms due to both firm failure and M and A activity. Additionally, idiosyncratic risk is found to have a statistically significant impact in driving these behaviors. The last essay focuses on how each of these intermediary groups alters their balance sheet in the face of economic uncertainty. Specifically, I examine how the debt financing behavior of these firms reacts to an economic policy uncertainty shock using a macroeconomic approach. The key results, from the impulse response and variance decomposition analysis, indicate that market based financial intermediaries tend to have faster responses to policy uncertainty relative to traditional intermediaries, however the small traditional financial intermediaries have the largest response.
Author: James Ormonde Staveley-O'Carroll Publisher: ISBN: Category : Economics Languages : en Pages : 258
Book Description
Since its inception, the Modigliani-Miller capital structure irrelevancy principle has limited researchers' interest in the role of financial intermediaries in macroeconomics. However, due to the spread of financial crises in emerging markets in the 1980s and 1990s, and the global financial collapse of 2008, the focus of much academic work has turned to rigorously modeling these entities. Chapter one surveys the past and current literature on all types of financial intermediaries (market makers, traditional banks, and hedge funds, among others) and discusses their role in dissemination of asymmetric information, real business cycle fluctuations, and financial crashes and contagion. In chapter two, I build a two-frequency sequential trade model which generates sharp endogenous asset price movements caused by slow dissemination of asymmetric information about economic fundamentals. The key mechanism used in the model employs a Glosten-Migrom market maker who gradually infers the value of the fundamental by trading with both uninformed and imperfectly informed agents. Information becomes "trapped" as purchases by the uninformed agent mask informative sales; a sudden price correction occurs as soon as the market maker discovers the true value of the fundamental. I also study the factors that influence the duration of the information dissemination process. In chapter three, I build a two-country DSGE model with multiple assets, incomplete markets, and an endogenous optimizing banking sector, that is capable of recreating some of the important trends and linkages observed in the financial data. International financial markets during the past several decades have been characterized by a significant rise in gross international equity flows, increased prominence of non-traditional financial institutions, and globalization of the banking sector. In particular, I demonstrate that financial liberalization leads to an increase in a country's gross international asset holdings and to a positive net equity position. Finally, the model lays the groundwork for addressing many of the global banking regulation issues (for example, capital requirements and bankruptcy resolutions) that are now emerging in the field of international finance.
Author: Tobias Adrian Publisher: International Monetary Fund ISBN: 1484371992 Category : Business & Economics Languages : en Pages : 47
Book Description
Variants of nonbank credit intermediation differ greatly. We provide a conceptual framework to help distinguish various characteristics—structural features, economic motivations, and risk implications—associated with different forms of nonbank credit intermediation. Anchored by this framework, we take stock of the evolution of shadow banking and the extent of its transformation into market-based finance since the global financial crisis. In light of the substantial regulatory and supervisory responses of recent years, we highlight key areas of progress while drawing attention to elements where work still needs to be done. Case studies of policy challenges arising in different jurisdictions are also discussed. While many of the amplification forces that were at play during the global financial crisis have diminished, the post-crisis reform agenda is not yet complete, and policy makers must remain attentive to new challenges looming on the horizon.
Author: Franklin R. Edwards Publisher: American Enterprise Institute ISBN: 9780844739892 Category : Business & Economics Languages : en Pages : 256
Book Description
Dramatic changes in information and telecommunications technologies have transformed U.S. financial markets in the 1980s and 1990s. This book examines the growth of mutual funds and derivatives markets and the decline of banks and explores implications of those developments for financial stability and regulatory policy. One of the book's central conclusions is that the current system of bank regulation is out of step with today's financial realities and needs to be substantially changed. Franklin Edwards asserts that the best way to increase the freedom of financial institutions to compete while making the financial system less vulnerable to excessive risk-taking by individual financial institutions is to adopt a system of collateralized banking. He shows how adopting such a system will result in a more stable financial system, both by reducing our reliance on government to maintain financial soundness and by enhancing the effectiveness of private markets in controlling institutional risk taking.
Author: Z. Mikdashi Publisher: Springer ISBN: 023029412X Category : Business & Economics Languages : en Pages : 334
Book Description
The increasing interdependence of the world economy has huge implications for global finance in the twenty-first century. This volume brings together leading scholars and practitioners to offer in-depth analyses of the new direction open to the financial services industry. They explore the challenges and opportunities of the new finance era, future development in financial markets, with particular emphasis on the role of new technologies and the industry's view of strengthening financial intermediation. The book concludes with an assessment of key managerial and regulatory issues.
Author: Nadiia Kudriashova Publisher: GRIN Verlag ISBN: 3668911452 Category : Business & Economics Languages : en Pages : 18
Book Description
Essay from the year 2017 in the subject Economics - Finance, grade: MA, Yale University, language: English, abstract: International Finance Center (IFC) are an integral part of the modern international financial economy. One of its basic components is the availability of developed national financial markets, actively interacting with similar markets in other countries. As an example, the United States can lead the UK, Japan, in economic development which play an important role the financial markets, and the major cities of these countries (New York, London, Tokyo), are the major international financial centers. Cities can be seen as the gateway to the global economy. They are important for the functioning of both national and global economy, since they are concentrated huge financial, informational and intellectual resources, based most of the major industrial, commercial, financial and service companies, specialized credit and financial institutions and banks. In addition to traditional MFC in the last decades of the 20th century a number of new financial centers competing for the role of international. The acceleration of globalization and especially its financial component, led to an increase in strength and influence regional financial centers, in particular, such as Hong Kong (Hong Kong). The financial market of China, which is traditionally considered to be emerging financial markets have long been a mature international financial centers that have an impact not only on the regional economy, but also in the distribution of global capital flows. The study of the functioning of the MFC, their development trends is the most important area for the understanding of the new global economy, its characteristics and movement mechanisms. At the same time identifying new trends in the development of Asian financial centers, particularly their inclusion in the competition for international corporations have mastered the financial market, is both scientific and practical interest. This makes it possible to identify local features of financial globalization as a result of the connection and the active development of the Asia-Pacific Economic Space with new financial centers, show their role, prospects and competitiveness in the global economy. Of particular importance is the study of the development of Chinese financial market, especially given the fact that the IMF has recognized the yuan a freely usable currency, reflecting the expanding role of China in world trade, a significant increase in the use of the yuan in the international scale and the growth of operations with it.
Author: Jeremy Atack Publisher: Cambridge University Press ISBN: 1139477048 Category : Business & Economics Languages : en Pages : 497
Book Description
Collectively, mankind has never had it so good despite periodic economic crises of which the current sub-prime crisis is merely the latest example. Much of this success is attributable to the increasing efficiency of the world's financial institutions as finance has proved to be one of the most important causal factors in economic performance. In a series of insightful essays, financial and economic historians examine how financial innovations from the seventeenth century to the present have continually challenged established institutional arrangements, forcing change and adaptation by governments, financial intermediaries, and financial markets. Where these have been successful, wealth creation and growth have followed. When they failed, growth slowed and sometimes economic decline has followed. These essays illustrate the difficulties of co-ordinating financial innovations in order to sustain their benefits for the wider economy, a theme that will be of interest to policy makers as well as economic historians.
Author: Tobias Adrian
Author: Tobias Adrian
Author: Marc S. Schaffer
Author: Asl? Demirgüç-Kunt
Author: James Ormonde Staveley-O'Carroll
Author: Aslı Demirgüç-Kunt
Author: Tobias Adrian
Author: Franklin R. Edwards
Author: Z. Mikdashi
Author: Nadiia Kudriashova
Author: Jeremy Atack