Search results for "financial system"
showing 10 items of 148 documents
Where Did the Money Go? Endogenous Money Creation for International Fraudulent Purposes - The Case of the 2015 Moldovan Banking Scandal
2015
On Monday 4 May 2015, the speaker of Parliament of the Republic of Moldova published the Kroll report on his Internet blog after thousands of people rallied on Sunday 3 May in the capital, Chisinau, to protest against endemic corruption in the country, and demand recovery of the missing billions in the Ilan Shor group scandal. The Kroll report aims at investigating the apparent theft of nearly one-fifth of the country's annual GDP. In a spectacular lender-of-last resort move, the Moldovan central bank was forced to issue some 16 billion lei ($870 million) in emergency loans to keep the economy afloat. The Kroll report focuses on three commercial banks that account for a third of the country…
Banking in Spain
2016
This chapter aims to explore recent developments in the Spanish banking industry and the measures adopted in recent years to correct the imbalances that built up during the expansion, in order to give an up-to-date picture of the sector in the international context. To this end, the chapter is divided into four sections. The section following the Introduction examines the importance of the banking sector in the Spanish economy using various indicators of banking penetration. The next section, “Characteristics of the Spanish Banking Sector: Recent Trends”, looks at key features of the banking sector and its evolution in terms of a range of measures, including margins, profitability, efficien…
Impact of the subprime crisis on bank ratings: The effect of the hardening of rating policies and worsening of solvency
2014
Abstract This paper studies the impact of the subprime crisis on the ratings issued by the rating agencies in evaluating the solvency of banks. After ascertaining a significant worsening of ratings after the crisis, the paper hypothesises the possibility that this worsening is due not exclusively to a deterioration in the banks’ credit quality, but also to a change in the behaviour of the rating agencies. The study designs a methodology to separate the observed change in ratings into two multiplicative components: one associated with the deterioration of the banks’ solvency itself and another associated with the change in the agencies’ valuation criteria. The methodology is applied to the S…
Disentangling the sources of sovereign rating adjustments: An examination of changes in rating policies following the GFC
2022
Abstract This paper disentangles and quantifies the sources of sovereign rating adjustments issued by the main rating agencies (Fitch, Standard and Poor's and Moody's) because of the global financial and European sovereign debt crises. We use a methodology (Rating Adjustment Decomposition) that allows us to decompose and quantify the portion of the rating adjustments motivated by changes in economic, financial and institutional quality factors (Δeconomic situation) and by changes in CRAs’ rating policies (Δrating policy). A third component (misprediction) is considered as the measure relies on a set of prediction exercises. Using 3,581 sovereign ratings from 104 (developed and developing) c…
An agency approach to debt maturity of unlisted and listed firms in the European setting
2019
Abstract This study analyses the debt maturity of two groups of companies – unlisted and listed – throughout the period 2005–2013. The research takes an agency costs approach to explore the determinants of firms' debt maturity structure for a set of five countries, chosen for being representative of the European Union (France, Germany, Italy, Spain and the United Kingdom). Agency costs, as well as institutional and macroeconomic factors, turn out to be decisive in explaining firms’ financial policies regarding debt maturity, during the economic crisis that started in 2007–2008. Our findings indicate that contracting costs had a greater impact on unlisted firms during the post-crisis subperi…
Subordinated debt in banking: a regulatory perspective
2018
The banking industry during the 1980s was characterised by the rapid spread of products and services innovations. A vast growth in this area belongs to subordinated debt. Among the instruments created for the banks' need of self-financing, subordinated debts are identified as a particular category: people who are granted a subordinated debt mainly assume the risk of the issuer's insolvency accepting to place themselves in an intermediate position between the owners and all the other creditors. Purpose of this study is to analyse the framework of this particular class of debt. Subordinated debts tend to be the first shock absorber able to incorporate the losses and tend to be very volatile w…
The Influence of Relationship Lending on SMEs Loan Repayment Performance
2020
The study examined the influence of relationship lending on repayment performance of small- and medium-enterprise (SME) credit facilities. Four hypotheses were developed and tested using data from 395 sampled borrowers of the largest Tanzanian bank. Data for independent variables were obtained through an administered questionnaire while the data for dependent variable were obtained from the borrowers’ records with the bank. Descriptive and econometric analyses were conducted. Findings show that length and depth of relationship between bank and customers positively and significantly influence the repayment performance. Contrary to other empirical works, the findings revealed the scope of th…
Identification of Clusters of Investors from Their Real Trading Activity in a Financial Market
2011
We use statistically validated networks, a recently introduced method to validate links in a bipartite system, to identify clusters of investors trading in a financial market. Specifically, we investigate a special database allowing to track the trading activity of individual investors of the stock Nokia. We find that many statistically detected clusters of investors show a very high degree of synchronization in the time when they decide to trade and in the trading action taken. We investigate the composition of these clusters and we find that several of them show an over-expression of specific categories of investors.
Systèmes financiers et canaux de transmission de la politique monétaire
2010
This dissertation analyses the consequences of transformations in the financial sphere on the transmission channels of decisions in monetary policy in industrialized countries over the past several years. We observe that as a result of these transformations, banking institutions have evolved from an originate to hold model to an originate to distribute model. This has enabled banks to turn more toward derivative products and credit risk transfer instruments. We demonstrate that these techniques of active/passive management have completely revolutionized the theoretical foundations of traditional channels and in particular the credit channel. Our analysis of these landmark changes is organiz…
Venture capital syndication and its causal relationship with performance outcomes
2010
Venture capital firms benefit from frequent and diverse syndication ties; these are causal of increased IPO generation.