By Santiago Carbó Valverde, Pedro Jesús Cuadros Solas, Francisco Rodríguez Fernández

This ebook offers perception into present study subject matters in finance and banking within the aftermath of the monetary trouble. during this quantity, authors current empirical examine on liquidity chance mentioned within the context of Basel III and its implications. Chapters additionally examine themes equivalent to financial institution potency and new financial institution enterprise versions from a company diversification viewpoint, the results on monetary exclusion and the way liquidity mismatches are comparable with the financial institution enterprise version. This e-book can be of worth to these with an curiosity in how Basel III has had a tangible effect upon banking tactics, quite in regards to retaining liquidity, and the newest examine in monetary enterprise models.

Show description

Read or Download Liquidity Risk, Efficiency and New Bank Business Models PDF

Best banking books

Global Governance of Financial Systems: The International Regulation of Systemic Risk

Ebook was once acknowledged to be "new". .. faraway from it. .a torn web page and used. .also my buddies ordered an analogous publication from one other vendor and it received to them inside of every week. .it took over a month to get my reproduction. .seller might be banned!

Cybercash: The Coming Era of Electronic Money

Cybercash refers back to the construction and circulate of on-line funds. Guttman applies fiscal research to this digital funds to appreciate the way it will let the net to re-establish itself because the dynamic heart of the hot economic climate and the way this new cash shape turns into the dominant fee mechanism rivaling money, paper assessments or charge cards.

Applications of Data Mining in E-Business and Finance

The applying of information Mining (DM) applied sciences has proven an explosive development in more and more diversified components of commercial, govt and technology. of an important enterprise components are finance, specifically in banks and insurance firms, and e-business, equivalent to internet portals, e-commerce and advert administration companies.

Additional resources for Liquidity Risk, Efficiency and New Bank Business Models

Sample text

32 M.  R. (2007). Regulatory capital arbitrage and the potential competitive impact of Basel II in the market for residential mortgages. Journal of Real Estate Finance & Economics, 35(2), 197–219. , (2012), Regulatory arbitrage in cross-border banking mergers within the EU.  G. (2000). A theory of bank capital. Journal of Finance, 55(6), 2431–2465. , & Yan, Y. (1999). Managing banks’ duration gaps when interest rates are stochastic and equity has limited liability. International Review of Economics and Finance, 8(3), 253–265.

Duan et al. 1999; Bajo et al. 2013). 2 A Note on Regulatory Arbitrage... 17 However, several studies show that interest rate risks are not neutralised within banks. For instance, Hatemi-J and Roca (2008) observe that bank returns on stock prices are sensitive to interest rate changes, and sensitivities to interest rate changes are observed as possible changes in revenue sources, based on an analysis of data covering the financial crisis (Lindblom and Willesson 2010). g. Vij’s (2005) case study and studies such as Fraser et al.

Willesson Risk level A Π a c b Π* B L/C L*/C* Capital structure E/(D+E) Fig. 2 Risk and capital level outcomes when regulatory arbitrage is considered by a less capitalised bank (Source: Author’s elaboration) diverge from optimal capital and risk levels, equivalent to C–C* and Π*– Π, respectively. These divergences indicate a potential loss to the bank. If these divergences affect the average cost of capital due to a mismatch between regulatory requirements and the bank’s optimal level of capital, it has the same effect on its owners.

Download PDF sample

Rated 4.95 of 5 – based on 21 votes