scholarly journals How Do Banking Groups React to Macroprudential Policies? Cross-Border Spillover Effects of Higher Capital Buffers on Lending, Risk-Taking and Internal Markets

2020 ◽  
Author(s):  
Giuseppe Cappelletti ◽  
Aurea Ponte Marques ◽  
Carmelo Salleo ◽  
Diego Vila Martín
Keyword(s):  
Risk Taking ◽  
Spillover Effects ◽  
Internal Markets ◽  
Cross Border ◽  
Macroprudential Policies

Innovation in Indian Business Groups

2018 ◽  
Author(s):  
Prashant Kale ◽  
Harbir Singh
Keyword(s):  
Risk Taking ◽  
Business Groups ◽  
Formal Learning ◽  
Internal Markets ◽  
Early Stages ◽  
Innovation Culture ◽  
External Sources ◽  
Set Up ◽  
Organizational Mechanisms ◽  
Learning Interventions

Innovation is a critical to the success of large, diversified Indian business groups and this chapter explores the specific organizational mechanisms they have adopted to enable and foster innovation in their organizations. First, these groups provide internal markets for much needed capital and talent necessary for innovation to make up for sufficient lack of these institutions externally. In addition, they have pursued the following actions: (a) significantly upped their investments in R&D and innovation, (b) created internal leadership councils to oversee and promote innovation, (c) created an innovation culture that encourages and celebrates entrepreneurship, risk-taking, and tolerance for failure, (d) undertaken formal learning interventions to build the innovation capabilities of their managers, and (e) set-up formal units to in-source innovation from external sources. Indian companies are yet in the early stages of this journey and will have to sustain these practices to demonstrate durable success with innovation.

THE INTERNATIONAL IMPACT OF MACROPRUDENTIAL POLICIES

2021 ◽  
Author(s):  
Doriane Intungane
Keyword(s):  
Equilibrium Model ◽  
Capital Requirements ◽  
Dynamic Stochastic General Equilibrium ◽  
Time Varying ◽  
Credit Growth ◽  
Cross Border ◽  
Macroprudential Policies ◽  
Dynamic Stochastic ◽  
The Impact

The recent financial crisis started a global debate on the role of financial policies, which led to financial system reforms in many countries. These reforms mainly consisted of increasing the usage of macroprudential policies. This dissertation seeks to understand whether macroprudential policies in financially integrated countries reduced their vulnerability to the impact of external shocks. Chapter 2 empirically examines the impact of macroprudential policies on cross-border bilateral credit growth. Capital requirements and loan-to-value (LTV) ratios, in 15 lending countries and 34 borrowing countries between 2000 and 2014, are used in the analysis. The results show that in some countries, the increase of capital requirements is not effective in reducing international credit flows during periods of financial vulnerability. The impact of tightening LTV ratios is more heterogeneous across countries because LTV ratios are mainly used in the housing sector and not all countries change their LTV ratio frequently. Hence, cooperation across countries is necessary but also countries should make sure that the change of macroprudential policies targeting lenders and those targeting borrowers complement each other to avoid international leakages. Chapter 3 analyzes issues related to the international spillover of macroprudential policies through international banking activities using a two-country dynamic stochastic general equilibrium model with heterogeneous and time-varying macroprudential policies. The results show that a combination of capital requirements and LTV ratios is effective in reducing credit growth despite the existence of cross-border banking activities and heterogeneous implementation of capital requirements across countries. In addition, international coordination of capital requirements is also effective in reducing credit growth but less effective than a combination of capital requirements and LTV ratios. Chapter 4 focuses on the role of countercyclical LTV ratios in reducing transmission of shocks when international investors, holding domestic and foreign assets, face collateral constraint. Using a two-country dynamic stochastic general equilibrium model, the analysis demonstrates that time-varying LTV ratios can reduce the transmission of shocks.

scholarly journals The Dollar, Bank Leverage, and Deviations from Covered Interest Parity

2019 ◽  
Vol 1 (2) ◽  
pp. 193-208 ◽  
Author(s):  
Stefan Avdjiev ◽  
Wenxin Du ◽  
Cathérine Koch ◽  
Hyun Song Shin
Keyword(s):  
Capital Markets ◽  
Risk Taking ◽  
Bank Lending ◽  
Global Capital ◽  
Cross Border ◽  
Covered Interest Parity ◽  
Interest Parity ◽  
Triangular Relationship

We document a triangular relationship in that a stronger dollar goes hand in hand with larger deviations from covered interest parity (CIP) and contractions of cross-border bank lending in dollars. We argue that underpinning the triangle is the role of the dollar as a key barometer of risk-taking capacity in global capital markets. (JEL F23, F31, G15, G21)

scholarly journals Cross-border capital flows and bank risk-taking

2020 ◽  
Vol 117 ◽  
pp. 105842 ◽  
Author(s):  
Valeriya Dinger ◽  
Daniel Marcel te Kaat
Keyword(s):  
Risk Taking ◽  
Capital Flows ◽  
Bank Risk ◽  
Cross Border

scholarly journals DEVELOPMENT FACTORS FOR CROSS-BORDER B2C E-COMMERCE IN THE WORLD AND IN POLAND

2017 ◽  
Vol 16 (4) ◽  
pp. 161-168
Author(s):  
Dariusz Strzębicki
Keyword(s):  
Economic Development ◽  
Online Marketing ◽  
Levels Of Selection ◽  
Electronic Marketplaces ◽  
Foreign Markets ◽  
Internal Markets ◽  
Cross Border ◽  
The World ◽  
Selection Of

The study attempted to identify the factors determining the development of CBEC B2C e-commerce in the world and in Poland. The level of CBEC development in selected countries has been shown. CBEC is a dynamically developing trading sector in the world. Countries differ in terms of CBEC development, which is due to the varying levels of selection of the products in their internal markets and the economic development of a particular country. CBEC’s worldwide development is also largely due to the international B2C electronic marketplaces. The barriers to the development of CBEC in the world include inadequate regulations to CBEC specificity, problems and costs of logistics and difficulties in conducting online marketing on foreign markets.

scholarly journals Domestic Lending and the Pandemic: How Does Banks' Exposure to Covid-19 Abroad Affect Their Lending in the United States?

2021 ◽  
Vol 2021 (056) ◽  
pp. 1-45
Author(s):  
Judit Temesvary ◽  
◽  
Andrew Wei ◽  
Keyword(s):  
United States ◽  
Spillover Effects ◽  
The United States ◽  
Registry Data ◽  
Cross Border ◽  
Foreign Countries ◽  
The U.S

We study how U.S. banks' exposure to the economic fallout due to governments' response to Covid-19 in foreign countries has affected their credit provision to borrowers in the United States. We combine a rarely accessed dataset on U.S. banks' cross-border exposure to borrowers in foreign countries with the most detailed regulatory ("credit registry") data that is available on their U.S.-based lending. We compare the change in the U.S. lending of banks that are more vs. less exposed to the pandemic abroad, during and after the onset of Covid-19 in 2020. We document strong spillover effects: U.S. banks with higher foreign exposures in badly "Covid-19-hit" regions cut their lending in the United States substantially more. This effect is particularly strong for longer-maturity loans and term loans and is robust to controlling for firms’ pandemic exposure.

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