IMPACT OF CAPPING OF INTEREST RATES: LESSONS FROM ACADEMIA
|
|
- Stanley Flowers
- 6 years ago
- Views:
Transcription
1 IMPACT OF CAPPING OF INTEREST RATES: LESSONS FROM ACADEMIA
2 INTRODUCTION interest rates caps are necessary in ensuring financial support for crucial sectors of the economy where market forces fail and where young industries cannot afford commercial credit at prevailing rates
3 INTRODUCTION interest rate caps can be used to protect consumers from exploitation by guaranteeing access to credit at reasonable rates
4 INTRODUCTION it has been argued out that because the prices charged for access to credit can be erratic and anticompetitive and therefore be higher than the true cost of lending, setting a lower cap on interest rates will provide an excellent environment for lenders to operate.
5 Lessons from academia: On MFIs Lend to small borrowers who require money for a variety reasons such as consumption and financing of a business and who cannot afford credit from the commercial banks. Interest rates will be high leading to high economic profits.
6 Lessons from academia: On MFIs - More employment (usually of graduates) to serve the many borrowers - More borrowing for those who need to further their education - More funding to small businesses leading to growth innovation, invention and entrepreneurship
7 Lessons from academia: On Banks When the interest is capped the banks are likely to face two main risks: Adverse selection as the demand for credit increases, they will not be able to differentiate to between higher risk and lower risk borrowers. The banks therefore charge an aggregated rate which is more attractive to the higher risk borrowers leading to high risk of default. Moral hazard: When an investor borrows at a high rate they may make riskier investments in order to cover their borrowing costs leading to high risk of default.
8 Lessons from academia: On Banks When interest rates are capped at very low levels, banks reduce the level of lending, increase processing costs, and introduce new products -Retrenchment of staff - banks reduce the level of lending to those who would want to further their education
9 Lessons from academia: On Banks - On the Supply of loans to Educational institutions may increase as they may have necessary collateral - banks may reduce funding of research due to reduced profitability.
10 Lessons from academia: On Banks - High growth of black market as borrowers look for quick monies leading to market distortion - Low deposit levels as the banks do not want to hold excess funds they cannot lend out. This leads to failure of understanding of the linkage between policy setting and practice
11 Lessons from academia: On Banks - NPLs go up which may lead to bankruptcy. This will require a lot of learnings around policy making and risk (measurements & impact) modelling
12 Lessons from academia: On Banks - Investments in terms of deposits may go up especially where the return is higher than those offered by alternative investments in the market. - The constrained credit product mix in price capped markets leads borrowers to use products which are less suited to their needs and expose them to greater risk
13 Lessons from academia: On economic growth Reduced profitability of banks coupled with low lending levels do not stimulate investment and business growth and hence economic growth. - Policy intentions must be clearly evaluated as they can lead to contrary results from expectations
14 Lessons from academia: On stock markets When rates are capped at levels that can provide investors with a moderate sure return on investment, they will shift their investments to the banks as deposits other than investing in stock markets. Stock markets may not be the best proxy to measuring economic outlook of a country.
15 Lessons from academia: On Investments Capping of rates may stimulate investments when properly done but it may also discourage investments when proper thought has not gone into the decision to cap.
16 Lessons from academia: On Employment May go up or down. Thank you
Investment and Financing Policies of Nepalese Enterprises
Investment and Financing Policies of Nepalese Enterprises Kapil Deb Subedi 1 Abstract Firm financing and investment policies are central to the study of corporate finance. In imperfect capital market,
More informationEconomics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 25 Transmission Mechanisms of Monetary Policy
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 25 Transmission Mechanisms of Monetary Policy 25.1 Transmission Mechanism of Monetary Policy 1) Economic theory suggests that interest
More informationBBPW3203 FINANCIAL MANAGEMENT II. Topic 1 Short-term Financing
BBPW3203 FINANCIAL MANAGEMENT II Topic 1 Short-term Financing January 2018 Content 1.1 Short-term financing 1.2 Current assets financing policy 1.3 Advantages and disadvantages of short-term financing
More informationThis lecture examines how banking is conducted to earn the highest possible profit.
Banking and the Management of Financial Institutions This lecture examines how banking is conducted to earn the highest possible profit. The Bank Balance Sheet A. The basic bank balance sheet B. Assets
More informationFresh Start in Bankruptcy
Renuka Sane 29 July 2016 Fresh start The opportunity to begin a new financial chapter The term is used in the context of discharge how many years does an individual have to wait before being discharged
More informationEconomic Policy in the Crisis. Lars Calmfors Jönköping International Business School, 2 November 2009
Economic Policy in the Crisis Lars Calmfors Jönköping International Business School, 2 November 2009 My involvement Professor of International Economics at the Institute for International Economic Studies,
More informationSUMMARY AND CONCLUSIONS
5 SUMMARY AND CONCLUSIONS The present study has analysed the financing choice and determinants of investment of the private corporate manufacturing sector in India in the context of financial liberalization.
More informationChapter 26 Transmission Mechanisms of Monetary Policy: The Evidence
Chapter 26 Transmission Mechanisms of Monetary Policy: The Evidence Multiple Choice 1) Evidence that examines whether one variable has an effect on another by simply looking directly at the relationship
More informationFinance options for farm and rural start-ups and expanding businesses
By Jim Richards, Rural and Business Specialists BUSINESS GUIDE INSPIRE START GROW THEBUSINESSBARN.CO.UK One challenge facing any farm or rural business owner whether a start-up or a growing business is
More informationCORPORATE BANKING & STRUCTURED INVESTMENTS
15 June 2018 JOBS FUND MEZZANINE FINANCING FOR AGRICULTURAL SECTOR TRANSFORMATION CORPORATE BANKING & STRUCTURED INVESTMENTS Conflicting Expectations from DFIs Land Bank, as a DFI is faced with conflicting
More informationWritten Submission for the Pre-Budget Consultations in Advance of the 2019 Budget. By: Mortgage Professionals Canada
Written Submission for the Pre-Budget Consultations in Advance of the 2019 Budget By: Mortgage Professionals Canada List of Recommendations 1. That the government implement an exemption to the Guideline
More informationPractical Lessons in Using Intellectual Property as Collateral
Practical Lessons in Using Intellectual Property as Collateral By Richard D. Crawford In a 2001 survey, Equipment Leasing Association members said they needed a better understanding of the intellectual
More informationMacroeconomic Outlook: Ag Lending
Macroeconomic Outlook: Ag Lending James Caton, Ph.D. PCPE Faculty Fellow/ Assistant Professor Ph.D., Economics, George Mason University, 2017 Teaches macroeconomics & international trade Specializes in
More informationby Sankar De and Manpreet Singh
Comments on: Credit Rationing in Informal Markets: The case of small firms in India by Sankar De and Manpreet Singh Discussant: Johanna Francis (Fordham University and UCSC) CAFIN Workshop 25-26 April
More informationSome Thoughts on the Economy and Financial Regulatory Reform
Some Thoughts on the Economy and Financial Regulatory Reform Presented to The Economics Club of Pittsburgh Pittsburgh, PA November 13, 2008 Charles I. Plosser President and CEO Federal Reserve Bank of
More informationFig. 1. The orthodox liquidity market model
10. Models of interest rate determination 1. The orthodox liquidity market model Definition 1.1. The orthodox liquidity (or loan or loanable funds) market model is as a competitive market model, represented
More informationManaging Risk in Banking
Managing Risk in Banking FIN 204 Lecture 6.1. Petar Stankov petar.stankov@gmail.com 16 Mar. 2009 P. Stankov (AAC) Lecture 6.1 16 Mar. 2009 1 / 10 Outline 1 Managing Credit Risk 2 Managing Interest Rate
More information1. Under what condition will the nominal interest rate be equal to the real interest rate?
Practice Problems III EC 102.03 Questions 1. Under what condition will the nominal interest rate be equal to the real interest rate? Real interest rate, or r, is equal to i π where i is the nominal interest
More informationLessons Learned? Comparing the Federal Reserve s Response to the Crises of and
Lessons Learned? Comparing the Federal Reserve s Response to the Crises of 1929-33 and 2007-09 David C. Wheelock Vice President and Economist Federal Reserve Bank of St. Louis November 23, 2009 Presentation
More informationPrivate Loan Guide. Apply for free, federal and state financial aid programs:
Private loan basics Private student loans are non-federal loans. Private Loan Guide You should only borrow private loans to fund your education as a last resort. Do all of the following before you consider
More informationCraft Lending: The Role of Small Banks in Small Business Lending
Craft Lending: The Role of Small Banks in Small Business Lending Lamont Black (DePaul) and Micha Kowalik (FRB of Boston) those of the author and do not necessarily represent those of the Federal Reserve
More informationLesson 8 Borrowing Money
AOBF Financial Planning Lesson 8 Borrowing Money Student Resources Resource Description Student Resource 8.1 Reading: Why Borrow? Student Resource 8.2 Worksheet: Borrowing and Lending Terms Student Resource
More informationHaruhiko Kuroda: Quantitative and qualitative monetary easing and the financial system toward realisation of a vigorous financial system
Haruhiko Kuroda: Quantitative and qualitative monetary easing and the financial system toward realisation of a vigorous financial system Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at
More informationOperation Evaluation Summary. A car manufacturer. (A private sector investment operation) December 11. ab0cd. Evaluation Department (EvD)
Operation Evaluation Summary A car manufacturer (A private sector investment operation) December 11 Evaluation Department (EvD) ab0cd Operation Evaluation Summary A car manufacturer December 2011 Executive
More informationChapter 20 (9) Financial Globalization: Opportunity and Crisis
Chapter 20 (9) Financial Globalization: Opportunity and Crisis Preview Gains from trade Portfolio diversification Players in the international capital markets Attainable policies with international capital
More informationPublic consultation. Draft guidance of the European Central Bank on leveraged transactions. Template for comments
Public consultation Draft guidance of the European Central Bank on leveraged transactions Template for comments Contact details (will not be published) Institution/Company UniCredit Contact person Mr Ms
More informationIntersession Project For the Class of 2018 LOAN PORTFOLIO MANAGEMENT YEAR Session
Intersession Project For the Class of 2018 LOAN PORTFOLIO MANAGEMENT YEAR 1 2016 Session P L E A S E N O T E For any questions regarding The Loan Portfolio Management Year 1 intersession project, the contacts
More informationCredit Enhancement Facility Partial Credit Guarantee for SMEs. Presented by Edison Galbraith - General Manager
Credit Enhancement Facility Partial Credit Guarantee for SMEs Presented by Edison Galbraith - General Manager DEVELOPMENT BANK OF JAMAICA CREDIT ENHANCEMENT FACILITY Abstract This presentation provides
More informationFinancing Constraints and Employment Evidence from Transition Countries. Dorothea Schäfer (DIW Berlin), Susan Steiner (LUH)
Financing Constraints and Employment Evidence from Transition Countries Dorothea Schäfer (DIW Berlin), Susan Steiner (LUH) Research question Do firms financing constraints inhibit the generation of employment?
More informationLECTURE VI. 17 July Tuesday, July 17, 12
LECTURE VI 17 July 2012 BUSINESS CYCLES (CONC) SHOULD WE STABILIZE? Should: Stabilization curbs household and firm pessimism, which leads to deeper recessions and wasted resources Why suffer? Should Not:
More informationEconomics 201 Fall 2010
Economics 201 Fall 2010 Final Exam Solutions Part A. (About 30 minutes) Fill in the blank with the best word or phrase (or circle the appropriate bracketed choice). You may give a one- or two-sentence
More informationSuperior Services Investment Group, LLC. Design Credit: Virtual Assistance Genie
Superior Services Investment Group, LLC Design Credit: Virtual Assistance Genie Wholesaling Advertising/ Marketing Tenant Placement Locating Discounted Properties Lease Purchase Contact Information Phone
More informationDifferences Across Originators in CMBS Loan Underwriting
Differences Across Originators in CMBS Loan Underwriting Bank Structure Conference Federal Reserve Bank of Chicago, 4 May 2011 Lamont Black, Sean Chu, Andrew Cohen, and Joseph Nichols The opinions expresses
More information2. Changes in a company s accounting policies and estimates can significantly distort any inter-firm comparisons and trend analysis.
Chapter 17 Solution 17.1 The limitations of ratio analysis are: 1. Accounting statements present a limited picture only of a business. The information included in the accounts does not cover all aspects
More informationChannels of Monetary Policy Transmission. Konstantinos Drakos, MacroFinance, Monetary Policy Transmission 1
Channels of Monetary Policy Transmission Konstantinos Drakos, MacroFinance, Monetary Policy Transmission 1 Discusses the transmission mechanism of monetary policy, i.e. how changes in the central bank
More informationA Message to You from Geoff Lee, President of GLM Mortgage Group
HOW RATES WORK 2 3 A Message to You from Geoff Lee, President of GLM Mortgage Group Should I have a fixed rate mortgage or a variable rate mortgage? At some point in the process of getting a mortgage this
More informationThe Federal Reserve System and Open Market Operations
Chapter 15 MODERN PRINCIPLES OF ECONOMICS Third Edition The Federal Reserve System and Open Market Operations Outline What Is the Federal Reserve System? The U.S. Money Supplies Fractional Reserve Banking,
More informationEx ante moral hazard on borrowers actions
Lecture 9 Capital markets INTRODUCTION Evidence that majority of population is excluded from credit markets Demand for Credit arises for three reasons: (a) To finance fixed capital acquisitions (e.g. new
More informationCapacity Capital Collateral Credit history Character
Capacity Capital Collateral Credit history Character For advisor information only The 5 Cs of Credit Understanding credit qualification At B2B Bank, we know that you strive to provide your clients with
More informationCotton in Tajikistan. Problems and Solutions Tajikistan Development Forum 2 June 2007
Cotton in Tajikistan Problems and Solutions Tajikistan Development Forum 2 June 2007 Cotton in Crisis Production -- declining yield: 2.8 t/ha in 1991, 1.6 t/ha in 2006 Poor soil structure (weak irrigation
More informationMulti-Dimensional Monetary Policy
Multi-Dimensional Monetary Policy Michael Woodford Columbia University John Kuszczak Memorial Lecture Bank of Canada Annual Research Conference November 3, 2016 Michael Woodford (Columbia) Multi-Dimensional
More informationBANK LENDING SURVEY (BLS) 1
CENTRAL BANK OF CYPRUS EUROSYSTEM BANK LENDING SURVEY (BLS) 1 April 18 Executive summary 2 Loan supply (credit standards) Credit standards for to enterprises and households in Cyprus remained unchanged
More informationNobel Symposium Money and Banking
Nobel Symposium Money and Banking https://www.houseoffinance.se/nobel-symposium May 26-28, 2018 Clarion Hotel Sign, Stockholm Discussion of Barry Eichengreen and Ben Bernanke May 2018 Stockholm Olivier
More informationSenior Loan Officer Opinion Survey on Bank Lending Practices at Large Japanese Banks (July 2018)
Weaker Stronger Bank of Japan Financial System and Bank Examination Department Not to be released until 8: a.m. JST on July 19, 218. July 19, 218 Senior Loan Officer Opinion Survey on Bank Lending Practices
More informationTaxing Risk* Narayana Kocherlakota. President Federal Reserve Bank of Minneapolis. Economic Club of Minnesota. Minneapolis, Minnesota.
Taxing Risk* Narayana Kocherlakota President Federal Reserve Bank of Minneapolis Economic Club of Minnesota Minneapolis, Minnesota May 10, 2010 *This topic is discussed in greater depth in "Taxing Risk
More informationFinal Exam: 14 Dec 2004 Econ 200 David Reiley
Your Name: Final Exam: 14 Dec 2004 Econ 200 David Reiley You have 120 minutes to take this exam. There are a total of 100 points possible, on 5 multiple-choice questions, and 2 multi-part essay questions.
More informationChanneling Growth Capital to Small and Medium-Size Businesses. Global Conference 2010
Channeling Growth Capital to Small and Medium-Size Businesses Global Conference 2010 Channeling Growth Capital to Small and Medium-Size Businesses Wednesday, April 28, 2010; 6:30-7:45 AM Moderator: Betsy
More informationFIDC Finance Industry Development Council
Finance Industry Development Council Non-Banking Finance Companies (NBFCs) - Contribution to the Economy & Way Forward Presented by: Raman Aggarwal Chairman 28 September, 2017 Page 1 NBFCs : Overview (As
More informationConsultation Response Office of Fair Trading: Proposals Payday Lending, Consultation on a Market Investigation Reference March 2013
Consultation Response Office of Fair Trading: Proposals Payday Lending, Consultation on a Market Investigation Reference March 2013 Who we are Toynbee Hall has worked on the frontline in the struggle against
More informationHatteras Core Alternatives Institutional Fund, L.P. Hatteras Core Alternatives TEI Institutional Fund, L.P. (the Funds )
February 27, 2017 Hatteras Core Alternatives Institutional Fund, L.P. Hatteras Core Alternatives TEI Institutional Fund, L.P. (the Funds ) Supplement to the Prospectus and Statement of Additional Information
More informationSenior Loan Officer Opinion Survey on Bank Lending Practices at Large Japanese Banks (July 2017)
Weaker Stronger Bank of Japan Financial System and Bank Examination Department Not to be released until 8: a.m. JST on July 2, 217. July 2, 217 Senior Loan Officer Opinion Survey on Bank Lending Practices
More informationBeing a Guarantor. This booklet will help you understand all that is involved in being a Guarantor.
is a big responsibility and can have serious consequences. It is important to understand exactly what you are getting yourself into and what the impact of signing the agreement may be. can be a helpful
More informationThe use of leverage in financial markets: regulatory issues and possible responses
Discussion Paper 2 The use of leverage in financial markets: regulatory issues and possible responses 1. Introduction 1.1. Recent events have focused attention on the use of leverage in speculative trading
More informationStatement of Matthew R. Shay President & CEO International Franchise Association. Before the House Committee on Small Business
Statement of Matthew R. Shay President & CEO International Franchise Association Before the House Committee on Small Business Hearing on Increasing Access to Capital for Small Businesses October 14, 2009
More informationKEY CHALLENGES FOR SUSTAINING GROWTH AND COMPETITIVENESS IN SEE
KEY CHALLENGES FOR SUSTAINING GROWTH AND COMPETITIVENESS IN SEE GLOBAL TRENDS Accelerating growth in advanced economies (US, UK, Eurozone) vs. Slowdown in almost all emerging markets Downward revisions
More informationTHE EFFECTS OF THE INTEREST RATE CEILINGS ON THE MICRO LENDING MARKET IN SOUTH AFRICA 1
THE EFFECTS OF THE INTEREST RATE CEILINGS ON THE MICRO LENDING MARKET IN SOUTH AFRICA 1 H. Mohane 2, G.K. Coetzee 2 and W. Grant 2 Interest rates are a topical subject in the micro lending industry in
More informationFinancing SMEs and Entrepreneurs: An OECD Scoreboard
Financing SMEs and Entrepreneurs: An OECD Scoreboard Workshop on SME Finance Session 4: The International Experience 16 February 2012 Banco de España, Madrid Miriam Koreen Deputy Director OECD Centre for
More informationBANK LENDING SURVEY 1 April 2015
CENTRAL BANK OF CYPRUS EUROSYSTEM BANK LENDING SURVEY 1 April 215 Summary results for Cyprus and the euro area 2 Loan supply (credit standards) Credit standards on to enterprises and households in Cyprus
More informationPreview PP542. International Capital Markets. Gains from Trade. International Capital Markets. The Three Types of International Transaction Trade
Preview PP542 International Capital Markets Gains from trade Portfolio diversification Players in the international capital markets Attainable policies with international capital markets Offshore banking
More informationCredit Administration and Documentation Standards
Credit Administration and Documentation Standards OVERVIEW: It is the objective of this Organization to extend adequate and constructive credit, in accordance with regulations, under the definition of
More informationComment on Lucas & Phaup: The Cost of Risk to the Government and Its Implications for Federal Budgeting
Comment on Lucas & Phaup: The Cost of Risk to the Government and Its Implications for Federal Budgeting Henning Bohn Department of Economics UC Santa Barbara bohn@econ.ucsb.edu Summary: Excellent Paper.
More informationThe Federal Reserve System
Question 1: What is the Federal Reserve System, and how is it structured? Answer 1: The Federal Reserve System serves as the central bank of the United States. It operates under the auspices of the federal
More informationProMS. Potential Effects of the Slotting Capital Regime on UK Commercial Property Lending
ProMS Potential Effects of the Slotting Capital Regime on UK Commercial Property Lending Radley & Associates is an independent firm dedicated to the development of advanced simulation based analytics for
More informationAdjusting Nominal Values to
Adjusting Nominal Values to Real Values By: OpenStaxCollege When examining economic statistics, there is a crucial distinction worth emphasizing. The distinction is between nominal and real measurements,
More informationInformational Frictions and Financial Intermediation. Prof. Irina A. Telyukova UBC Economics 345 Fall 2008
Informational Frictions and Financial Intermediation Prof. Irina A. Telyukova UBC Economics 345 Fall 2008 Agenda We are beginning to study banking and banking regulation. Banks are a financial intermediaries.
More informationDiscussion of Liquidity Regulation and Unintended Financial Transformation in China by Kinda Hachem and Zheng Michael Song
Discussion of Liquidity Regulation and Unintended Financial Transformation in China by Kinda Hachem and Zheng Michael Song Patricia Gomez-Gonzalez (Fordham University) October 3, 2017 Conference on China
More informationadvancing with ESIF financial instruments Financial instruments working with personal loans
advancing with ESIF financial instruments Financial instruments working with personal loans DISCLAIMER This document has been produced with the financial assistance of the European Union. The views expressed
More informationInterest (monthly) = Principal x Rate x Time
Lesson 3: Mortgages In this lesson you will take a look at mortgages and the monthly payments they require. More detailed calculations will be examined in Lesson 4. While home ownership can be a rewarding
More informationHow to Invest in Private Money Real Estate Loans
How to Invest in Private Money Real Estate Loans Investors seeking alternatives to the stock and bond markets will find refuge in the world of private money loan investing. If you are careful and diligent,
More informationInternational Lender of Last Resort and Debt Restructuring
International Lender of Last Resort and Debt Restructuring Eduardo Fernández-Arias (personal views) Preventing and Managing Debt Crises to Promote Sustainability Santiago, November 2011 Outline 1. The
More informationPanel Discussion: " Will Financial Globalization Survive?" Luzerne, June Should financial globalization survive?
Some remarks by Jose Dario Uribe, Governor of the Banco de la República, Colombia, at the 11th BIS Annual Conference on "The Future of Financial Globalization." Panel Discussion: " Will Financial Globalization
More informationIdentifying factors that support and hinder the scaling up of promising new ventures
Identifying factors that support and hinder the scaling up of promising new ventures Debora Revoltella Director Economics Department European Investment Bank ECB MIT Joint Conference Fostering Innovation
More informationI'm delighted to welcome you to the November edition of Regulation round-up. I'd like to take the opportunity to raise awareness of our guidance
November 2016 Banks & building societies // Investment managers & stockbrokers Financial advisers // Wealth managers & private banks Mortgage advisers // Insurers & insurance intermediaries Consumer credit
More informationBaltics going forward
Jan Erik Back CFO Baltics going forward November 25 20 SEB Baltic division background SEB Baltic division overview Universal banking services in all three countries Ranked No 1 by customers in Estonia
More informationECONOMIC EDUCATION FOR CONSUMERS Chapter 10
WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating LESSON 10.1 What Is Credit? GOALS
More informationGREG GIOKAS NMLS#
GREG GIOKAS NMLS# 441885 Greg Giokas is right at home in the mortgage industry, which is known for being about as easy to navigate as a boat on storm-ravaged waters. Communicative, progressive and supportive,
More informationINSIGHTS FROM AGRICULTURAL LENDERS. January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer
INSIGHTS FROM AGRICULTURAL LENDERS January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer bebrewer@purdue.edu AGRICULTURAL LENDER SURVEY Survey expectations and past results
More informationFIRST: GET PRE-APPROVED
The internet is covered in high quality information aimed at helping first time home buyers understand the process of purchasing a house. However, there is one small problem. There are a LOT of steps involved
More informationHIGH LEVERAGE FINANCE CAPITALISM: ETHICAL ISSUES AND POTENTIAL REFORMS NEILSON
HIGH LEVERAGE FINANCE CAPITALISM: ETHICAL ISSUES AND POTENTIAL REFORMS NEILSON Involuntary poverty is usually a bad thing. Poverty, like war, often brings out the worst in people Schumpter analyzed how
More informationEconomic and monetary. developments. The results of the euro area bank lending survey for the second quarter of 2014
Economic and monetary Monetary and financial Box 2 The results of the euro area bank lending survey for the second quarter of 214 This box summarises the main results of the euro area bank lending survey
More informationMinutes of the Monetary Policy Council decision-making meeting held on 6 July 2016
Minutes of the Monetary Policy Council decision-making meeting held on 6 July 2016 At the meeting, members of the Monetary Policy Council discussed monetary policy against the background of macroeconomic
More informationHOUSEHOLD WEALTH AND ENTREPRENEURSHIP: IS THERE A LINK? Silvia Magri * (January 2006) Abstract
HOUSEHOLD WEALTH AND ENTREPRENEURSHIP: IS THERE A LINK? Silvia Magri * (January 2006) Abstract In the absence of correlation between net wealth and entrepreneurial talent or risk aversion, net wealth should
More informationCommunity Investments Vol. 10, Issue 1 Replicating CRA in South Africa
Community Investments Vol. 10, Issue 1 Replicating CRA in South Africa Author(s): Dr. Etienne van Loggerenberg, General Manager, ABSA Group Ltd. in cooperation with Shawn Elliott Marshall, Community Investment
More informationLecture 3 ( 3): April 20 and 22, 2004 Demand, Supply, and Price Stiglitz: pp
Lecture 3 ( 3): April 20 and 22, 2004 Chapter 4 Demand, Supply, and rice Stiglitz: pp. 71-95. Key Terms: demand curve substitutes complements demographic effects supply curve equilibrium price excess supply
More informationFINC 2400 PERSONAL FINANCE SPRING 2018 CHAPTER 7. Part 1: ABOUT LOANS AND LOAN TYPES
FINC 2400 PERSONAL FINANCE SPRING 2018 CHAPTER 7 Part 1: ABOUT LOANS AND LOAN TYPES Sven Thommesen 2018 1 THE ESSENCE OF CREDIT The lender provides you with a sum of money today: the loan. You promise
More informationManaging Risk in Banking
Managing Risk in Banking MBMM Lecture 6.1. Petar Stankov petar.stankov@cerge-ei.cz 04 Nov. 2008 P. Stankov (CERGE-EI) Lecture 6.1 04 Nov. 2008 1 / 10 Outline 1 Managing Credit Risk 2 Managing Interest
More informationEconomics 304 Fall 2013
conomics 04 Fall 01 Homework Set # Solutions 1. Draw a budget-constraint/indifference-curve diagram to illustrate each of the following situations with current consumption ( ) on the horizontal axis and
More informationINSERT BLACK & WHITE PICTURE
INSERT BLACK & WHITE PICTURE Bakken Producer Financial Stress January Executive Summary Effect of Crude Oil Pricing The recent decline in crude oil pricing is affecting the viability of higher-cost oil
More informationWill Regulatory Reform Prevent Future Crises?
Will Regulatory Reform Prevent Future Crises? James Bullard President and CEO CFA Virginia Society February 23, 2010 Richmond, Virginia. Any opinions expressed here are my own and do not necessarily reflect
More information1. Primary markets are markets in which users of funds raise cash by selling securities to funds' suppliers.
Test Bank Financial Markets and Institutions 6th Edition Saunders Complete download Financial Markets and Institutions 6th Edition TEST BANK by Saunders, Cornett: https://testbankarea.com/download/financial-markets-institutions-6th-editiontest-bank-saunders-cornett/
More informationThe impact of information sharing on the. use of collateral versus guarantees
The impact of information sharing on the Abstract use of collateral versus guarantees Ralph De Haas and Matteo Millone We exploit contract-level data from Bosnia and Herzegovina to assess the impact of
More informationGeorgetown University. From the SelectedWorks of Robert C. Shelburne. Robert C. Shelburne, United Nations Economic Commission for Europe.
Georgetown University From the SelectedWorks of Robert C. Shelburne Summer 2013 Global Imbalances, Reserve Accumulation and Global Aggregate Demand when the International Reserve Currencies Are in a Liquidity
More informationFinancial Crises: Why They Occur and What to Do about Them. E. Maskin Institute for Advanced Study
Financial Crises: Why They Occur and What to Do about Them E. Maskin Institute for Advanced Study current financial crisis only latest in long sequence history of financial crisis in U.S. goes back to
More informationCristina Camastra Matr IL QUANTITATIVE EASING DELLA BCE. The object of my work is The BCE s Quantitative Easing discussed through three
Cristina Camastra Matr. 067972 IL QUANTITATIVE EASING DELLA BCE The object of my work is The BCE s Quantitative Easing discussed through three chapters. In the first part I will talk about quantitative
More informationGlobal Financial Crisis and China s Countermeasures
Global Financial Crisis and China s Countermeasures Qin Xiao The year 2008 will go down in history as a once-in-a-century financial tsunami. This year, as the crisis spreads globally, the impact has been
More informationOverview. Stanley Fischer
Overview Stanley Fischer The theme of this conference monetary policy and uncertainty was tackled head-on in Alan Greenspan s opening address yesterday, but after that it was more central in today s paper
More informationFragmentation of the European financial market and the cost of bank financing
Fragmentation of the European financial market and the cost of bank financing Joaquín Maudos 1 European market fragmentation following the crisis has resulted in a widening of borrowing costs across Euro
More informationNo securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise.
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. PART A Simplified Prospectus dated December 29, 2011 Income Funds Cambridge Income
More informationAsymmetric Information and the Role of Financial intermediaries
Asymmetric Information and the Role of Financial intermediaries 1 Observations 1. Issuing debt and equity securities (direct finance) is not the primary source for external financing for businesses. 2.
More informationADKINS CAPITAL MANAGEMENT
ADKINS CAPITAL MANAGEMENT ADKINS RESIDENTIAL HOME VALUATION ANALYZER Residential Real Estate Property Analysis October 02, 2015 Troy M. Adkins II. New York, NY residentialrealestateanalysis.com CONTENTS
More information