Finance Commons^™

The Federal Reserve’S Financial Crisis Response A: Lending & Credit Programs For Depository Institutions, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in summer 2007, the Federal Reserve (the Fed) was called upon to address a severe disruption in the interbank lending markets sparked by a downturn in the subprime mortgage market. As these developments began to impact the ability of banks to raise adequate funding, the Fed encouraged them to utilize the Discount Window (DW), its standing facility for lending to depository institutions, and repeatedly decreased the lending rate to make the facility more accessible. Despite the Fed’s efforts, for a number of reasons, including historical perceptions of stigma, banks were reluctant to utilize the DW. In December 2007, the …

Cross-Border Technology Investments In Recessions, Juliana Yu Sun, Huanhuan Zheng

Research Collection School Of Economics

Utilizing industry-level foreign direct investment (FDI) from 72 source markets to 122 destination markets between 2003 to 2018, we apply a differences-in-differences approach to evaluate the response of technology FDI to recessions. We find that research and development (R&D) intensive FDI drops when the destination market is in recession and the source market is in a normal state, and recovers to the pre-recession levels when both destination and source markets are in recession. The result is particularly pronounced in deep and long recessions, during the propagation stage of recessions, and in destination markets with stronger intellectual property protection, looser FDI …

Restructuring And Forgiveness In Financial Crises D: The Japanese Financial Crisis Of The 1990s, Christian M. Mcnamara, Andrew Metrick

Journal of Financial Crises

In November 1997 the Japanese government confronted a problem of enormous proportions when the turmoil that had been roiling the financial markets since the collapse of a real estate and stock market asset bubble in 1990 reached a crescendo with the failure of four major financial institutions in quick succession in the space of a month. Prior to these failures, the damage done by the collapsing bubble had seemed to be limited to certain segments of the financial landscape, and the government’s response consisted largely of targeted intervention when necessary for clearly insolvent financial institutions, with a more comprehensive approach …

Restructuring And Forgiveness In Financial Crises C: The Swedish Banking Crisis Of 1990-94, Christian M. Mcnamara, Dr. Lars Thunell, Andrew Metrick

Journal of Financial Crises

In the Spring of 1992, the Swedish government faced a dilemma. The country was in the midst of an economic downturn stemming from the collapse of asset prices (especially in real estate) that had spiked as a result of a credit boom that followed the deregulation of the Swedish banking system in the mid-1980s. Initially the impact of the downturn on the country’s banks had seemed to be limited to a small number of specific firms that the government moved to assist on an ad hoc basis in 1991. However, evidence was mounting that the banking crisis was reaching a …

Restructuring And Forgiveness In Financial Crises B: The Asian Crisis Of 1997, June Rhee, Andrew Metrick

Journal of Financial Crises

Asia’s economy, Thailand in particular, was booming when the financial crises hit in the 1990s. However, troubles were brewing underneath the seemingly buoyant economy. With a fragile financial system and ineffective domestic government responses to these troubles, an exchange rate crisis took over Thailand, and this crisis started a financial contagion in the neighboring countries. This case reviews the background and domestic government responses to contain the crisis, and the international intervention provided by the International Monetary Fund including the assistance and the required reforms accompanying the support.

Restructuring And Forgiveness In Financial Crises A: The Mexican Peso Crisis Of 1994-95, Christian M. Mcnamara, June Rhee, Andrew Metrick

Journal of Financial Crises

Following a year in which repeated political turmoil sapped investor confidence in Mexico, putting pressure on the peso and draining the country’s foreign exchange reserves, on December 22, 1994, the Mexican government sparked a financial crisis by unexpectedly abandoning its policy of anchoring the peso to the US dollar and instead allowing it to float freely. The resulting collapse of the peso left Mexico with $40 billion to $50 billion in external debt (much of it dollar-indexed) coming due in the near term and almost no foreign exchange reserves. Faced with the prospect that Mexico would either default on its …

Trade Financing In Emerging Markets, Jamie L. Morris

Senior Theses

Businesses need capital to initiate trades, drive growth, and produce profit, but unfortunately, not all companies can access to capital easily. Small and medium-sized enterprises (SMEs), although critical to the global economy, typically have trouble funding trades because of a lack of creditworthiness. This problem worsens for SMEs in emerging markets in volatile economies with political instability (“Trade finance and SMEs” 2016, p.11-21). In this study, we analyze how third-party trade finance companies can help finance trades more easily for SMEs in eight (8) emerging markets: Kenya, Rwanda, Ethiopia, Chile, Peru, Thailand, Cambodia, and Indonesia. We use a unique source …

The Sustainability Of Child Protection Services In The Republic Of Kosovo, Shpetim Bylykbashi

Capstone Collection

Today, in Kosovo, are services provided for the children most in need sustainable? Do these services have stable and long-term funding? Did the decentralization of the Kosovo government strengthen or weaken the existing child protective environment? In an attempt to answer these questions, a review of available literature was completed, as well as direct interviews conducted with relevant stakeholders engaged in Kosovo’s child protection services at both the governmental and civil society levels. The main finding of my research is that vulnerable children in Kosovo, such as children without parental care, children with special needs, and child victims of domestic …

Portfolio Capital Inflows And Banking Crisis In Emerging Market And Developing Economies (Mdes): Bank-Level Evidence From Nigeria, Tijjani Mohammed Jume

Bullion

The objective of the paper is to assess the effects of foreign portfolio capital surge on the banking sector in Nigeria from 2005 - 2018. Using a simple trend analysing a static general equilibrium framework, the paper reveals that portfolio capital inflows, in the wake of monetary policy independence in Nigeria, led to portfolio capital surge which resulted to credit boom and speculative transactions in the Nigerian Stock Exchange (NSE) leading to assets price bubble. When the bubble burst during the global financial crisis (GFC) in 2007, and thereafter in 2014, portfolio capital inflows reversed and banking stocks prices declined …

Essays On Anomalies In International Equity Markets, Xiao Cheng

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters related to empirical asset pricing in the international stock market.

Chapter 1: "Loss of International Sales and Stock Performance" Using international firm-level data from 1990-2015, I show that when global firms' total international sales drop to zero, this conveys an important signal about future firm operations. An equal-weighted portfolio that sells stocks of firms that completely lost international sales and buys stocks of global firms earns up to 86 basis points per month (over 10% per year). This return predictability cannot be explained by the Fama-French international three- or five-factor models. Further examination suggests …

Basel Iii D: Swiss Finish To Basel Iii, Christian M. Mcnamara, Natalia Tente, Andrew Metrick

Journal of Financial Crises

After the Basel Committee on Banking Supervision (BCBS) introduced the Basel III framework in 2010, individual countries confronted the question of how best to implement the framework given their unique circumstances. Switzerland, with a banking industry that is both heavily concentrated and very large relative to the size of its overall economy, faced a special challenge. It ultimately adopted what is sometimes referred to as the “Swiss Finish” to Basel III—enhanced requirements applicable to Switzerland’s “too-big-to-fail” banks Credit Suisse and UBS that go beyond the base requirements established by the BCBS. Yet the prominent role played by relatively new contingent …

Basel Iii B: Basel Iii Overview, Christian M. Mcnamara, Michael Wedow, Andrew Metrick

Journal of Financial Crises

In the wake of the financial crisis of 2007-09, the Basel Committee on Banking Supervision (BCBS) faced the critical task of diagnosing what went wrong and then updating regulatory standards aimed at preventing it from occurring again. In seeking to strengthen the microprudential regulation associated with the earlier Basel Accords while also adding a macroprudential overlay, Basel III consists of proposals in three main areas intended to address 1) capital reform, 2) liquidity standards, and 3) systemic risk and interconnectedness. This case considers the causes of the 2007-09 financial crisis and what they suggest about weaknesses in the Basel regime …

Impact Of Bank Competition On Bank Stability In China, Hanyang Liu

Chulalongkorn University Theses and Dissertations (Chula ETD)

This study investigates the impact of bank competition on bank stability of China over the 2006–2019 period. We use unbalanced panel data from 38 Chinese commercial banks. We employ the natural logarithm of the Z-score to measure bank stability, and the NPL ratio to measure bank credit risk. Meanwhile, the competition was measured through Panzar-Rosse H-statistic. The study uses both the linear and non-linear regression models and investigates effect of the interest rate liberalization in China. The results show that the degree of bank competition in China is on a rise trend. More competition has caused a decrease in stability …

A Study Of The Benefits And Barriers Of Thai Smes With Bot Policy Supporting Smes, Laksika Junyakhajorn

Chulalongkorn University Theses and Dissertations (Chula ETD)

This qualitative and descriptive study aims to determine from the perspective of SMEs owner towards the policies in order to see the benefits and obstacles of Thai SMEs with BOT policies on supporting SMEs. The in-depth interviews were conducted with 10 SMEs owners in Thailand and some interview questions generating to deeper discussion. The thematic analysis was used to analyze the interviews. The study showed that some company characteristics data i.e., company age, company size, and business sectors had a significant effect on perspectives towards the policies supporting SMEs. However, the demographic characteristics of owner did not relatively affect the …

Does The Policy Rate Have A Significant Effect On The Npl Level Of Smes During The Past 17 Years (2002-2019) In Thailand?, Anekphong Tupan

Chulalongkorn University Theses and Dissertations (Chula ETD)

During the post “Tom Yum Kung Crisis”, the bank of Thailand used monetary policy interest rate as a financial instrument. To keep economic growth and stability by raising, maintaining, or lowering the policy interest rate, under a flexible inflation targeting framework to achieve inflation. The determination of monetary policy interest rate is influencing the cost of SMEs operating through the credit channel. Consequently, the purpose of this research is to explore the relationship between the determination of monetary policy interest rate and Non-performing Loans (NPLs) in the SME sector. The OLS regression is used to analyze the cause and effect …

Marketing And Strategy Analysis: A Case Study Of Pana Coffee Company, Sulida Intarawichien

Chulalongkorn University Theses and Dissertations (Chula ETD)

Coffee business is extremely growth in last few years. Pana coffee company is a brand-new coffee business company. The company has been established for 4 years. There are lots of organization management that company needed to solid and make the strength on to go further in several years. One of the important managements in organization is marketing management which effect on brand and positioning of brand in market. So, the marketing strategies of company needed the improvement to compete and survive in the global growth business. This study aims to analyze organization resources by using SWOT analysis and 5P’s Marketing …

The Service Quality Affecting Customer Loyalty Toward Food Delivery Service In Thailand, Panuwan Chartchawalitsakul

Chulalongkorn University Theses and Dissertations (Chula ETD)

Over the past five years, the market value of food delivery services business has grown by an average of 10 percent annually. The key player for this market growth is service providers through application. Moreover, the entry of new players has made the market more competitive. Therefore, service providers keep their customers by increasing loyalty with a higher service quality to make customers satisfied and continue to use the service. In consequence, the objective of this study is to examine the impact of service quality on customer loyalty toward food delivery service in Thailand. The study method is quantitative, using …

The Effect Of Bank Competition On Bank Stability In Thailand, Kamolwan Yamploy

Chulalongkorn University Theses and Dissertations (Chula ETD)

This research studies the impact of competition on bank stabilities, which are capital adequacy, non-performing loans ratio, interest income risk, and non-interest income risk. Lerner index is used to proxy degree of non-structural bank competition. We use data on 11 Thai commercial banks from the year 2010 to 2018 and employ Panel Least Square regression. Our results show that banks with higher market power tend to have lower risk lending behaviors. As a result, this allows them to have lower level of capital and higher level of risk in non-interest income activities. On the other hand, higher concentration ratio 5, …

Factors Influencing The Foreign Direct Investmet Inflow In Tourism Industry In Thailand, Pitchapa Tubtimtong

Chulalongkorn University Theses and Dissertations (Chula ETD)

Tourism industry has been considered as an important part of the Thai economy since tourism helps support many tourism businesses, increase employment, and compensate for other industries presenting weak growth, which will generate high income for Thailand continuously. This paper employs multiple regression by using Ordinary Least Squares (OLS) method to investigate factors influencing Foreign Direct Investment (FDI) inflows in tourism industry in Thailand over the period 2000 - 2019, especially the effect of tourism- induced factors on FDI inflows including growth of tourism industry, tourism average spending, and tourism demand volume. Quarterly data using in this paper is based …

Determinants Of Cross-Border Mergers And Acquisitions Of Firms In Thailand, Pongpak Weerakiet

Chulalongkorn University Theses and Dissertations (Chula ETD)

In this paper, we evaluate the effects of firm-level and country-level variables on the firms' probability of having cross-border M&A deals and the size of the deals. Our sample consists of 87 firms from SET100 Index (firms from financial industry are excluded), and the data between 2009 to 2018 is used in this paper. The results indicate that the increase in ownership advantages of the firms, namely, size and profitability raise the chance of the firms having cross-border M&A deals and the size of the deals. For country-level variables, the results agree with the gravity model that an increase in …

The Impact Of Internet Finance On The Profitability Of Commercial Banks In China, Yuting Song

Chulalongkorn University Theses and Dissertations (Chula ETD)

Several studies analyzed the impact of internet finance on the profitability of Chinese commercial banks. This paper adds to the literature by focusing on two types of internet finance, internal internet finance (online banking) and external internet finance (third-party-payment (TPP) and peer-to-peer lending (P2P) platforms), and their relationship with bank performance. Two datasets that cover the years 2011 to 2018 are used for the regression analyses, a balanced panel dataset of 10 banks to analyze the impact of internal and external internet finance on bank performance and an unbalanced panel dataset of a larger sample of 43 banks to further …

The Bluebox Practicum: Integrating Technology, Culture, And Academic Service-Learning, Charles Braymen, Dustin Ormond

Jesuit Higher Education: A Journal

Advancing education in marginalized communities has been more difficult compared to more privileged communities due to the lack of infrastructure, which in part results in an absence of educational materials. The BlueBox Project was created to minimize this divide by bringing a wealth of information to these communities. Using a small digital computer, faculty, staff, and students across many disciplines built the BlueBox, a stand-alone digital library which hosts an array of books, articles, educational games, and videos to inspire learning in a variety of subjects including science, technology, math, music, and literature. The BlueBox is powered by solar energy, …

European Banking Union D: Cross-Border Resolution—Dexia Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick

Journal of Financial Crises

In September 2008, Dexia Group, SA, the world’s largest provider of public finance, experienced a sudden liquidity crisis. In response, the governments of Belgium, France, and Luxembourg provided the company a capital infusion and credit support. In February 2010, the company adopted a European Union (EU)-approved restructuring plan that required it to scale back its businesses and cease proprietary trading. In June 2011, Dexia withdrew from the government-sponsored credit support program before its expiration date, and in July, the company announced that it had passed an EU stress test. However, just three months later, Dexia wrote down its substantial position …

European Central Bank Tools And Policy Actions A: Open Market Operations, Collateral Expansion And Standing Facilities, Chase P. Ross, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in August 2007, the European Central Bank (ECB) responded to market turmoil with a variety of standard and non-standard monetary policy tools. This case discusses the operational framework of the ECB’s open market operation tools and standing facilities before and during the financial crisis. Specifically, this case describes the ECB’s use of its main refinancing and longer-term refinancing operations, the expansion of collateral eligible for use in Eurosystem credit operations, and the ECB’s standing facilities, including its marginal lending and deposit facilities.

Ireland And Iceland In Crisis C: Iceland’S Landsbanki Icesave, Arwin G. Zeissler, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

At year-end 2005, almost all of the total assets of Iceland’s banking system were concentrated in just three banks (Glitnir, Kaupthing, and Landsbanki). These banks were criticized by certain financial analysts in early 2006 for being overly dependent on wholesale funding, much of it short-term, that could easily disappear if creditors’ confidence in these banks faltered for any reason. Landsbanki, followed later by Kaupthing and then Glitnir, responded to this criticism and replaced part of their wholesale funding by using online accounts to gather deposits from individuals across Europe. In Landsbanki’s case, these new deposits were marketed under the name …

Ireland And Iceland In Crisis A: Increasing Risk In Ireland, Arwin G. Zeissler, Karen Braun-Munzinger, Andrew Metrick

Journal of Financial Crises

Ireland went from being the poorest member of the European Economic Community in 1973 to enjoying the second highest per-capita income among European countries by 2007. Healthy growth in the 1990s eventually gave way to a concentrated boom in property-related lending in the 2000s. The growth in the aggregate loan balances of Ireland’s six major banks greatly exceeded the growth in gross domestic product (GDP); as a result, bank loan balances grew from 1.1 times GDP in 2000 to over 2.0 times GDP by 2007. Given the small size of the domestic retail depositor base, the Irish banks increasingly funded …

International Welfare Spillovers Of National Pension Schemes, James Staveley-O'Carroll, Olena Staveley-O'Carroll

Economics Department Working Papers

We employ a two-country overlapping-generations model to explore the international dimension of household portfolio choices induced by the asymmetric provision of government-run pensions. We study the resulting patterns of risk-sharing and the corresponding welfare effects on both home and foreign agents. Introducing the defined benefits pay-as-you-go system at home increases the welfare of all other agents at the expense of the home workers and improves the degree of intergenerational risk sharing abroad. Conversely, a defined contributions system leads to welfare losses of both home cohorts accompanied by gains abroad, but does increase the extent of intergenerational risk sharing at home.

Utilizing Blockchain Trade Finance To Promote Financial Inclusion, Bryce Ciccaglione

Honors Scholar Theses

This paper examines the use of blockchain, or distributed ledger, technology for the potential supplantation of the antiquated process of international trade financing. Using the technology for this purpose has the potential to narrow the enormous gap in unmet demand for trade finance experienced by small-and medium-sized enterprises in the developing world. The current process of trade finance is still paper-based and relies heavily on manual labor. After the 2008 Global Financial Crisis, banks became restrictive in their lending, especially to small-and medium-sized enterprises in developing countries, leading to the aforementioned trade finance gap. Blockchain technology could narrow this gap …

Toward A More Universal Currency: The Impact Of The Clearing Mechanism On Developing Economies, Evan Ross Kaderbeck

Applied Economics Theses

Toward a More Universal Currency:

The Impact of the Clearing Mechanism on Developing Economies

As part of a broader plan to reform the system of international finance, experts have indicated the need to modify the system of international money. They point to problems such as the difficulties faced by developing countries in obtaining hard currency needed for imports, or the flows of hot money which make the financing of long-term development projects difficult. Some have called for a form of universal currency, used only in international trade. Developing nations especially need access to a clearing mechanism which would eliminate the …

Given Today's New Wave Of Protectionsim, Is Antitrust Law The Last Hope For Preserving A Free Global Economy Or Another Nail In Free Trade's Coffin?, Allison Murray

Loyola of Los Angeles International and Comparative Law Review

No abstract provided.