scholarly journals BANKING CONSOLIDATION PROCESS AND IMPACT TO FINANCIAL STABILITY

2010 ◽  
Vol 2 (2) ◽  
pp. 62-68
Author(s):  
Lina Novickytė
Keyword(s):  
Financial Stability ◽  
Economies Of Scale ◽  
Negative Impact ◽  
Financial Sector ◽  
Financial Intermediaries ◽  
Stability Studies ◽  
Consolidation Process ◽  
Market Participants ◽  
Efficient Management ◽  
Market Consolidation

Globalization promotes financial market participants to seek opportunities for efficient management of available resources and maximize benefits. In recent years, took place in the con­solidation process is mainly due to both macroeconomic and microeconomic factors. Most often leads to consolidation pro­cesses in order to gain economies of scale, market power and X-efficiency. Market consolidation and financial sector stability studies have shown that concentrated financial intermediaries market have a negative impact on the region/country/sector financial stability. In the future countries and regions (EU) must find ways and means to smoothly manage the inevitable process of globalization under the supervision of future merger transac­tions in order to guarantee the efficiency and sustainability of the financial sector.

Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?

2013 ◽  
Vol 14 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Andreas Dombret ◽  
André Ebner
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Integration ◽  
Incentive Compatibility ◽  
Financial Intermediaries ◽  
Entry And Exit ◽  
Short Term ◽  
Market Participants ◽  
Cross Border ◽  
Crucial Feature

Abstract Financial integration and globalization have acted as a major stimulus in the development of large, internationally operating banks, which not only provide cross-border services but also have a local presence. While these banks are themselves drivers of economic integration, they can pose serious threats to financial stability. Their size, interconnectedness and importance as providers of specific services mean that financial institutions can be too-systemic-to-fail (TSTF). Since the entry and exit of market participants is a crucial feature of well-functioning markets, the absence of any credible possibility of failure leads to serious distortions. This analysis gives an overview of the TSTF problem and discusses the challenges to be faced in establishing credible resolution regimes.

scholarly journals Financial Frictions in Macroeconomic Models

2018 ◽  
Author(s):  
Alfred Duncan ◽  
Charles Nolan
Keyword(s):  
Financial Stability ◽  
Financial Frictions ◽  
Financial Sector ◽  
Financial Intermediaries ◽  
Financial Instability ◽  
External Shocks ◽  
Macroeconomic Dynamics ◽  
Macroeconomic Models ◽  
Macroprudential Policies

In recent decades, macroeconomic researchers have looked to incorporate financial intermediaries explicitly into business-cycle models. These modeling developments have helped us to understand the role of the financial sector in the transmission of policy and external shocks into macroeconomic dynamics. They also have helped us to understand better the consequences of financial instability for the macroeconomy. Large gaps remain in our knowledge of the interactions between the financial sector and macroeconomic outcomes. Specifically, the effects of financial stability and macroprudential policies are not well understood.

SYSTEM OF ADMINISTRATIVE AND LEGAL MEANS OF OFFENSE PREVENTION IN THE FINANCIAL SPHERE

2017 ◽  
Author(s):  
Iryna Komarnytska ◽  
Keyword(s):  
Crime Prevention ◽  
Financial Stability ◽  
Negative Impact ◽  
Delinquent Behavior ◽  
Financial Sector ◽  
The State ◽  
Financial Control ◽  
Analysis Of Means ◽  
Legal Nature ◽  
Systemic Nature

The article analyzes the system of administrative and legal means of crime prevention in the financial sphere in Ukraine. It is noted that in general the prevention of offenses in the financial sphere is aimed at eliminating the possibility of harm to individual subjects of financial and legal relations and the financial system of Ukraine, the state, society as a whole, eliminating the negative impact on the financial sector. Ukraine. It was found that the administrative and legal means of crime prevention in the financial sphere is a system of substantial and activity legal phenomena, through which the subjects of financial control, law enforcement and other bodies, citizens, their associations and other subjects of counteraction to financial offenses nature, establish the causes and conditions of misconduct in the financial sector, neutralize the factors that determine the delinquent behavior, have a preventive effect to prevent tax, budget offenses, banking offenses, financial offenses in the customs sphere and other financial offenses. The analysis of means of counteraction to torts which pose a threat to financial stability, security of the state, guarantee of financial rights of individuals and legal entities is presented. The specifics of the legal nature and legal features of the system of administrative and legal means of crime prevention in the financial sphere in Ukraine, the regulatory framework for their application, elements, varieties are detailed. The need to take into account the factors that determine tortious behavior of a financial nature is emphasized. It is emphasized that on the way of implementation of modern reforms in the financial sphere the legislator must form a legal basis for the implementation of financial and legal means of prevention of financial delinquent behavior, take into account the systemic nature of such means and the need for comprehensive consideration and standardization.

scholarly journals MACRO-PRUDENTIAL POLICY: ESSENCE AND MEANING

2018 ◽  
pp. 148-152
Author(s):  
ELISO BERIDZE
Keyword(s):  
Financial Stability ◽  
Financial Sector ◽  
Macroprudential Policy ◽  
Market Participants ◽  
Exogenous Shocks ◽  
Systemic Risks ◽  
Banking Institutions ◽  
Policy Risk ◽  
Fiscal And Monetary Policy ◽  
Prudential Policy

Macro-prudential policy implies monitoring, evaluation and carrying out such a supervisory policy of financial stability which will be aimed at eradicating systemic risks and neutralizing pro-cyclic nature of the financial sector (growing to the cycle direction, pro-cyclical). To do this, it is necessary to carry out the supervisory policy: risk assessment; analysis of the activities of banking institutions and preparation of recommendations. Systemic risks include: exogenous shocks (economic fall, external shock, etc.), the second, so-called “contagious shocks” (contagion) that are due to the high integration of the financial sector internationally; the third category is the accumulation of financial imbalance that is the risk of endogenous nature and is often collected by the support of market participants. Against the background of the global crisis, Lehman Brothers’ bankruptcy in September 2009 clearly demonstrated those negative externalities which are linked to the bankruptcy of the systemic bank globally. Consequently, the macroprudential policy aims to reduce the probability of system banks’ bankruptcy and in case of bankruptcy to limit the system’s adverse effect. However, it is important to adequately implement the countercyclical fiscal and monetary policy.

ANALYTICAL TOOLS AND MANAGEMENT METHOD OF CASH FLOWS AT THE ENTERPRISE

2017 ◽  
pp. 93-105
Author(s):  
Olha NIPIALIDI
Keyword(s):  
Financial Stability ◽  
Cash Flows ◽  
Sustainable Growth ◽  
Financial Health ◽  
Traditional Assessment ◽  
Financial Condition ◽  
Efficient Management ◽  
Expert Assessments ◽  
Analytical Tools

Introduction. The most important factors for “financial health” of the company are effectively structured cash flows, precondition for sustainable growth and achievement of high end results of economic activity as a whole. Knowledge and practical use of modern methods of organization and efficient management of cash flows enables transition of the company to a new quality of economic development. Purpose. The aim of the article is the research and development of theoretical, methodological and practical recommendations concerning the organization of the management process of cash flows at the enterprise. Results. Methodology of traditional assessment of financial stability of the enterprise, its elements and the factors influencing it can significantly complement and improve through the use of advanced mathematical models that allow to analyze the accuracy and objectivity of expert assessments for determination the level of the financial condition of the enterprise. Conclusion. The system of indicators used in the analysis of cash flows at the enterprises is investigated and systematized. It is advisable to choose those indicators from the total aggregate of indicators that are the most attracted to specific users of accounting information. Methods for analyzing cash flow is supplemented as regards the determination of the integral index of financial stability, which makes it possible to install ranked of the investigated enterprise. Proposals for amendments the methodological approaches to estimating of future cash flows will allow more effectively increase usefulness and reliability of accounting and analytical information for making management decisions.

On the Major Differences between the Banking Systems of the EAEU States

2020 ◽  
Vol 26 (4) ◽  
pp. 397-406
Author(s):  
T. E. Chekanova
Keyword(s):  
Financial Stability ◽  
Systems Approach ◽  
Negative Impact ◽  
Banking Regulation ◽  
Member States ◽  
Banking Systems ◽  
Significant Negative Impact ◽  
The Difference ◽  
The Government ◽  
Major Factors

The presented study examines the problems of integration of the national banking systems of the member states of the Eurasian Economic Union (EAEU).Aim. The study aims to examine the major differences in various aspects of functioning of banking systems in the EAEU member states in terms of their impact on integration processes.Tasks. The author identifies the most prominent features of the banking systems of the EAEU states; reveals the depth of the existing differences through a comparative analysis of various indicators of national banking systems; outlines ways of overcoming integration problems associated with differences in the banking sectors of the Union states.Methods. This study is based on universal general scientific methods and elements of comparative, functional, and economic analysis within the framework of a systems approach. The author uses regulatory documents and banking reports of the EAEU states, statistical and analytical materials of the Eurasian Economic Commission (EEC), and data of Moody’s international rating agency.Results. The study identifies a number of aspects that contain the major differences in the functioning of banking systems in the EAEU member states; highlights the disproportions in the scale, level of development, financial stability, and risks of the banking spheres of the Union states; comparatively analyzes the proportion of banking and non-banking structures in the system and the share of the government and non-resident companies in the capital of banks; marks the difference in the pricing of banking services; determines differences in the existing approaches to banking regulation and the established standards; analyzes the major differences in the legislative acts of the central banks and governments of the EAEU member states and in the terms and definitions used. According to the results of the study, the major factors hindering the development of integration processes between the banking systems of the EAEU states are identified.Conclusions. The existing differences between the banking systems of the EAEU countries are diverse and multifaceted. The author states that the aspects addressed in this study have a significant negative impact on the further development of integration processes, describing the major directions and actions of the member states aimed at minimizing the exiting differences, which are required to facilitate the convergence of the states and the transition towards a common financial market.

scholarly journals Reserved Bed Program Reduces Neurosciences Intensive Care Unit Capacity Strain: An Implementation Study

Neurosurgery ◽  
2019 ◽  
Vol 86 (1) ◽  
pp. 132-138
Author(s):  
Christopher D Shank ◽  
Nicholas J Erickson ◽  
David W Miller ◽  
Brittany F Lindsey ◽  
Beverly C Walters
Keyword(s):  
Intensive Care ◽  
Economies Of Scale ◽  
Negative Impact ◽  
The United States ◽  
Fiscal Year ◽  
Implementation Study ◽  
Service Line ◽  
Hospital Units ◽  
Significant Negative Impact ◽  
Operational Issues

Abstract BACKGROUND Neurosciences intensive care units (NICUs) provide institutional centers for specialized care. Despite a demonstrable reduction in morbidity and mortality, NICUs may experience significant capacity strain with resulting supraoptimal utilization and diseconomies of scale. We present an implementation study in the recognition and management of capacity strain within a large NICU in the United States. Excessive resource demand in an NICU creates significant operational issues. OBJECTIVE To evaluate the efficacy of a Reserved Bed Pilot Program (RBPP), implemented to maximize economies of scale, to reduce transfer declines due to lack of capacity, and to increase transfer volume for the neurosciences service-line. METHODS Key performance indicators (KPIs) were created to evaluate RBPP efficacy with respect to primary (strategic) objectives. Operational KPIs were established to evaluate changes in operational throughput for the neurosciences and other service-lines. For each KPI, pilot-period data were compared to the previous fiscal year. RESULTS RBPP implementation resulted in a significant increase in accepted transfer volume to the neurosciences service-line (P = .02). Transfer declines due to capacity decreased significantly (P = .01). Unit utilization significantly improved across service-line units relative to theoretical optima (P < .03). Care regionalization was achieved through a significant reduction in “off-service” patient placement (P = .01). Negative externalities were minimized, with no significant negative impact in the operational KPIs of other evaluated service-lines (P = .11). CONCLUSION Capacity strain is a significant issue for hospital units. Reducing capacity strain can increase unit efficiency, improve resource utilization, and augment service-line throughput. RBPP implementation resulted in a significant improvement in service-line operations, regional access to care, and resource efficiency, with minimal externalities at the institutional level.

Money growth variability and output: evidence with credit card-augmented Divisia monetary aggregates

2020 ◽  
Vol 24 (5) ◽  
Author(s):  
Jinan Liu ◽  
Apostolos Serletis
Keyword(s):  
Financial Stability ◽  
Credit Card ◽  
Negative Impact ◽  
Balance Sheet ◽  
Credit Cards ◽  
Money Growth ◽  
Monetary Policies ◽  
Growth Variability ◽  
Significant Negative Impact ◽  
Growth Volatility

Abstract We reexamine the effects of the variability of money growth on output, raised by Mascaro and Meltzer (1983), in the era of the increasing use of alternative payments, such as credit cards. Using a bivariate VARMA, GARCH-in-Mean, asymmetric BEKK model, we find that the volatility of the credit card-augmented Divisia M4 monetary aggregate has a statistically significant negative impact on output from 2006:7 to 2019:3. However, there is no effect of the traditional Divisia M4 growth volatility on real economic activity. We conclude that the balance sheet targeting monetary policies after the financial crisis in 2007–2009 should pay more attention on the broad credit card-augmented Divisia M4 aggregate to address economic and financial stability.

Non-bank financial intermediaries and financial stability

2021 ◽  
Author(s):  
Sirio Aramonte ◽  
Andreas Schrimpf ◽  
Hyun Song Shin
Keyword(s):  
Financial Stability ◽  
Financial Intermediaries

Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry

2014 ◽  
Vol 14 (03n04) ◽  
pp. 467-485 ◽  
Author(s):  
Lionel Bopage ◽  
Kishor Sharma
Keyword(s):  
Trade Liberalization ◽  
Productivity Growth ◽  
Economies Of Scale ◽  
Motor Vehicle ◽  
Negative Impact ◽  
Policy Implications ◽  
Tariff Protection ◽  
Ongoing Debate ◽  
Motor Vehicle Industry ◽  
Production Subsidies

This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.

Sign in / Sign up

Export Citation Format

Share Document