344 research outputs found
Predicting European Bank Distress: Evidence from the recent financial crisis
No full textBased on a sample of active and non-active banks operating in four areas of specialization: commercial banks, co-operative banks, savings banks and real estate and mortgage banks, belonging to 12 European countries over the period 2001-2011, this paper examines whether the Z-score is indeed a valuable measure to predict bank distress. Additionally, in order to verify whether the predictive power of the Z-score varies before and during the recent crisis, the sample period is further split into two sub-periods: the pre-crisis period (2001–2007) and the crisis years (2008–2011). The results of the empirical analysis indicate that the Z-score is a key determinant of the probability of bank distress in all the sample periods considered. In addition, the paper finds that complementing the Z-score with indicators for bank size and bank risk improves the model performance, only during the whole period and the crisis years. The contribution of macro-variables results basically insignificant
Reflections on Lindblom and some present observations
No full textThe year 2009 was the 50th anniversary of the seminal paper written by Charles Lindblom. In effect, he described “real life” policy formulation and rationalized how simple appreciation of the process could lead to better policy. That paper remains relevant because of the expressed equivalence between decision making and policy formulation. The four publications of Lindblom associated with muddling are reviewed here and reflected in four studies involving this author in Sweden as viewed through the lens of Lindblom. Situations involving after-sales service, creative projects, buyer behavior under conditions of uncertainty and crises in projects were found to relate to Lindblom’s basic theses as well as some observations in present business education. Clearly, tenets of Lindblom’s work remain applicable in aspects of present business operations.</p
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The impact of deregulation and re-regulation on bank efficiency: evidence from Asia
No full textFollowing the 1997 crisis, banking sector reforms in Asia have been characterised by the emphasis on prudential regulation, associated with increased financial liberalisation. Using a panel data set of commercial banks from eight major Asian economies over the period 2001-2010, this study explores how the coexistence of liberalisation and prudential regulation affects banks’ cost characteristics. Given the presence of heterogeneity of technologies across countries, we use a stochastic frontier approach followed by the estimation of a deterministic meta-frontier to provide ‘true’ estimates of bank cost efficiency measures. Our results show that the liberalization of bank interest rates and the increase in foreign banks' presence have had a positive and significant impact on technological progress and cost efficiency. On the other hand, we find that prudential regulation might adversely affect bank cost performance. When designing an optimal regulatory framework, policy makers should combine policies which aim to foster financial stability without hindering financial intermediation
Regulating High-Frequency Trading: An examination of European, U.S. and Australian Equity Market Structures
No full textHFT has become one of the greatest concerns of the securities industry in recent years, mainly for supposedly profiting at the expense of traditional investors and exacerbating volatility. This paper examines the differences among the recent proposed regulations on HFT worldwide by comparing several recent approaches by national regulators and by ESMA and SEC
The Loan Market—The Swedish Example
No full textFrom a Swedish perspective, different types of credits and loans relevant to young adults are analysed, together with an assessment of levels of indebtedness. This enables an assessment of the level of urgency regarding the Swedish market and a discussion of whether the recent development of the Swedish loan market follows an international trend. The level of indebtedness of Swedish young adults is compared to the general population of borrowers. The efforts taken by Swedish authorities are discussed, something that may serve as a description of one way to tackle current societal challenges. The Swedish example, containing strong macro-prudential initiatives, could be seen as an example of a legislative way to tackle problems associated with a potential housing bubble and high debt ratios
Islamic and Conventional Exchanges: A Performance Analysis and Governance Perspectives
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A Proposal to Measure Banks' Reputation Using Twitter
No full textReputation is a special issue for financial institutions, particularly nowadays due to the great pressure they are facing as a consequence of the recent financial crisis. However, in banking literature, while the concept of reputation is rather obvious, more efforts must be made to develop a measurable notion of Corporate Reputation (CR) and of its changes over time (Reputational Risk, RR). This paper proposes a new perspective to the analysis and measurement of reputation in banking industry, directly focused on stakeholders’ opinions. In detail, after some theoretical and practical reflections, we present a pilot study, using data from Twitter, to test a methodology and to offer some future research perspectives
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