Public Economics Commons^™

Italy: Banca Monte Dei Paschi Di Siena Capital Injection, 2017, Benjamin Hoffner

Journal of Financial Crises

The 2017 recapitalization of Italy’s third-largest bank, Banca Monte dei Paschi di Siena (MPS), the oldest bank in the world, represents an unusual precautionary, “open bank” recapitalization under the European Union’s Bank Recovery and Resolution Directive (BRRD) rules. In 2015, the bank held the largest portfolio of nonperforming loans (NPLs) in Italy (with 34.8% of its total loans), and in 2016 it was the only bank to fail the European Banking Authority’s adverse scenario stress test, although its reported total capital ratio at the end of the year was 10.4%. To address its NPL problem, MPS agreed with the European …

Japan: Nippon Credit Bank Capital Injection,1997, Owen Heaphy

Journal of Financial Crises

In 1997, Japan experienced a financial crisis caused by the bursting of a bubble in commercial real estate prices. By March, Nippon Credit Bank (NCB), the smallest of Japan’s three long-term credit banks, required government assistance due to its heavy exposure to commercial real estate and large amount of nonperforming loans. On April 1, the Bank of Japan (BoJ) announced the government’s intention to recapitalize NCB as part of a restructuring package. To facilitate the injection, Japan’s Ministry of Finance (MoF) engineered a consortium of large existing shareholders in NCB (mainly insurance companies) and the other two Japanese long-term credit …

Iceland: Arion Bank, Islandsbanki, And Landsbankinn Capital Injections, 2008, Ayodeji George

Journal of Financial Crises

Iceland’s three largest banks—Glitnir, Kaupthing, and Landsbanki—grew rapidly in the 2000s and failed amid depositor runs when they lost access to foreign funding markets at the onset of the Global Financial Crisis (GFC). On October 6, 2008, the Icelandic Parliament passed the Emergency Act, and authorities quickly used their new powers to nationalize the three banks. The Ministry of Finance created and capitalized Arion Bank (for Kaupthing), Islandsbanki (for Glitnir), and Landsbankinn (for Landsbanki), to hold the old banks’ performing domestic assets and all insured domestic deposits, and the prime minister assured all domestic depositors that they would be protected. …

India: Yes Bank Capital Injection, 2020, Salil Gupta

Journal of Financial Crises

In March 2020, the Reserve Bank of India (RBI) helped engineer a capital injection and restructuring of Yes Bank, India’s fourth-largest private sector bank, to prevent a run on the bank and to preserve broader financial stability. On March 14, 2020, Yes Bank received a total capital injection of 100 billion Indian rupees (INR; USD 1.34 billion) in total from the State Bank of India and a group of private sector banks (HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, IDFC First Bank). The government-owned SBI received a 48.2% equity stake, committing to contribute up to …

Greece: Piraeus Bank Capital Injection, 2015, Stella Schaefer-Brown

Journal of Financial Crises

Greek banks experienced heavy deposit outflows from December 2014 through June 2015, which led Greece to declare a bank holiday from June 28, 2015, until July 18, 2015. Greek banks’ reliance on liquidity assistance from the Eurosystem began in August 2011, with a second peak in 2015; emergency liquidity assistance was fully repaid in 2019. The European Central Bank’s Single Supervisory Mechanism, responsible for banking supervision in Europe, conducted a stress test and asset quality review of the four large Greek banks and identified a capital shortfall of EUR 4.7 billion for Piraeus Bank (the Bank) in October 2015. To …

Greece: Ate Bank Capital Injection, 2011, Stella Schaefer-Brown

Journal of Financial Crises

In 2009, ATE Bank, the fifth-largest Greek bank, received a capital injection of EUR 675 million in Tier 1 preference shares as part of a broader aid package for the bank. In August 2010, Greek authorities conducted a strategic review of Greek banks, which concluded that ATE Bank was still facing serious difficulties. In October 2010, ATE Bank submitted a restructuring plan that included the purchase of EUR 1.14 billion in new ordinary shares. Of this EUR 1.14 billion, the bank used EUR 675 million to repurchase the earlier EUR 675 million preference shares. Private investors purchased an additional EUR …

Germany: Ikb Deutsche Industriebank Capital Injection, 2008, Lakshimi Swaminathan, Rishi Vala

Journal of Financial Crises

In July 2007, investors rapidly pulled their funding from asset-backed commercial paper (ABCP) programs that held US subprime mortgage-linked securities. According to the Financial Crisis Inquiry Commission (FCIC), German bank IKB Deutsche Industriebank AG (IKB) was the “first big casualty” of that run on ABCP. It had directly and indirectly guaranteed to provide EUR 9.3 billion in liquidity to its off-balance-sheet vehicle, Rhineland Funding Capital Corporation. German authorities and the Kreditanstalt für Wiederaufbau (KfW), a state-owned German development bank, quickly took over those obligations on July 30 to keep IKB solvent and prevent it from closing. KfW also agreed to …

Germany: Hsh Nordbank Capital Injection, 2009, Anmol Makhija

Journal of Financial Crises

State-controlled HSH Nordbank AG (HSH) lost EUR 2.8 billion in 2008, mainly because of impairments to its holdings of US structured credit securities. On April 29, 2009, the German bank regulator informed HSH that it would close HSH if the owners did not recapitalize the bank to the 8% total capital ratio requirement. In June 2009, the state governments of Hamburg and Schleswig-Holstein injected EUR 3 billion (USD 3.8 billion) of capital in ordinary shares with voting rights and provided a EUR 10 billion asset guarantee, called a “risk shield,” for a 7.85% annual fee. Over the next few years, …

Cyprus: Laiki Bank Capital Injection, 2012, Stella Schaefer-Brown

Journal of Financial Crises

In 2011, Cyprus’s second-largest bank, Marfin Popular Bank—later renamed Cyprus Popular Bank, but commonly known as Laiki Bank—lost billions of euros when the Greek government restructured its sovereign debt, decimating its equity capital and shutting its access to market liquidity. In late 2011, supervisors estimated the bank’s capital shortfall at EUR 3.1 billion. In January 2012, the bank submitted a plan to the central bank that included EUR 1.8 billion of capital raised from private investors and EUR 1 billion of capital increases through debt-to-equity swaps and deleveraging. However, Laiki Bank was unable to raise private capital and asked the …

France: Bank Of France Capital Injection, 1805, Ayodeji George

Journal of Financial Crises

After receiving the exclusive right to issue bank notes in Paris in 1803, the Bank of France became a significant source of funding for the French government in early 1805, as Napoleon prepared for a key battle of the Napoleonic Wars. In the first half of 1805, the French treasury paid back loans with notes with later maturities rather than metallic money, draining the metallic liquidity reserves of the Bank of France far below levels that bankers at the time considered prudent. After the circulation of an unfounded rumor that Napoleon himself had raided the metallic reserves for the war …

Belgium: Fortis Group Capital Injection, 2008, Ayodeji George

Journal of Financial Crises

In September 2008, in the wake of the freezing of credit markets caused by the Global Financial Crisis (GFC), Fortis Group, a financial conglomerate incorporated in Belgium and the Netherlands, faced depositor runs and share price deterioration. These negative consequences were a result of its exposures to US subprime mortgage-related assets and other losses from its 2007 acquisition of ABN AMRO, a large Dutch bank. Over the weekend of September 27–29, authorities from Belgium, the Netherlands, Luxembourg, and the European Central Bank (ECB) held emergency talks, resulting in the announcement of EUR 11.2 billion (USD 14.3 billion) in capital injections …

Belgium And France: Dexia Group Capital Injection, 2008, Ayodeji George

Journal of Financial Crises

Dexia Group (Dexia, or the Group) was a banking and insurance conglomerate that specialized in public financing with major operations in Belgium, France, and Luxembourg. Following the collapse of Lehman Brothers in mid-September 2008, Dexia faced a liquidity crunch as wholesale funding markets froze. Faced with insolvency concerns, authorities from the bank’s three primary markets, Belgium, France, and Luxembourg, conducted overnight negotiations to agree on capital injection terms. On September 30, 2008, authorities and the bank’s board of directors announced a EUR 6.4 billion (eventually EUR 6 billion) capital injection intended to restore Dexia’s solvency and maintain systemwide stability. The …

Austria And Germany: Hypo Alpe Adria Capital Injections, 2008, Bailey Decker

Journal of Financial Crises

Hypo Alpe Adria (HAA) was Austria’s sixth-largest bank at the time of the Global Financial Crisis of 2007–2009 (GFC), with EUR 41.2 billion (USD 29.2 billion) in total assets as of June 30, 2008. HAA pursued a growth strategy in Southeastern Europe in the years preceding the GFC, which proved troublesome for HAA’s loan portfolio and led to large write-downs in autumn 2008. HAA’s majority shareholder was a German landesbank, Bayerische Landesbank (BayernLB). On October 26, 2008, the Austrian Parliament passed a EUR 100 billion support scheme in response to the GFC, with EUR 15 billion allocated for troubled banks. …

Survey Of Ad Hoc Capital Injections, June Rhee, Benjamin Hoffner, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

Government recapitalizations of systemic banking organizations can be costly and unpopular but are sometimes necessary to protect depositors and prevent financial contagion. This paper surveys 23 Yale Program on Financial Stability case studies of ad hoc capital injection programs, defined as programs that provide capital to a single institution or a clearly defined minority of institutions. We saw a marked increase in capital injection programs in the past 50 years, more than half of which were ad hoc. Authorities designing ad hoc capital injections face difficult decisions—when to deploy them rather than let a bank fail; whether to impose losses …

Selected U.S. Government Statistical Agencies And Their Data, Bert Chapman

Libraries Faculty and Staff Presentations

Provides introductory and detailed overview of U.S. Government agencies statistics. Includes examples of how an individual U.S. law authorizes government agencies to compile statistics for particular congressional committees and the general public. Statistics cover topics such as demography, defense, foreign assistance, economic growth, criminal justice, energy, Social Security, and Medicare.

The Effect Of Stimulus Payments On College Students: Ex-Ante Perceptions And Reality, Rohan Angadi, Vidhura Sbw Tennekoon

Midwest Social Sciences Journal

In this paper, we use a natural experiment to measure the impact of a transitory positive income shock on college education. On March 11, 2021, the American Rescue Plan Act was signed into law. This act made provisions for the third round of Economic Impact Payment for eligible US residents. Each person in an eligible family received up to $1,400. This stimulus payment was an exogenous positive income shock on US college students if they received the payment. Using primary data collected through a survey, we first investigate how US college students were affected by and responded to this income …

Socioeconomic Inequalities Between The Bronx And Other Counties In New York City, Mexican Studies Institute Cuny, Eliana Checo-Genaoa

CUNY Mexican Studies Institute

The Bronx, despite its proximity to the other boroughs of New York City, has the highest poverty rates among them. Using data from 2010 to 2022, this study examines the socioeconomic disparities between the Bronx and Brooklyn, Manhattan, Queens, and Staten Island. Key indicators analyzed include poverty levels, SNAP benefits, unemployment rates, median income, educational attainment, homeownership rates, business creation, and GDP per capita. Our study reveals that the Bronx has the highest poverty, unemployment, and SNAP benefit dependency rates, lower educational attainment, and the lowest median income and homeownership rates. Our findings underscore the persistent socioeconomic challenges faced by …

Lessons Learned: Paul Boothe, Mary Anne Chute Lynch

Journal of Financial Crises

Paul Boothe served as Canada’s senior associate deputy minister of industry during the Global Financial Crisis (GFC) of 2007–2009. Boothe led the Canadian federal government’s negotiation team during the restructuring talks with Chrysler and General Motors (GM). He also negotiated with the Canadian Auto Workers (CAW), a union that included Tier 1 auto parts suppliers for all the major auto manufacturers worldwide. Canada aligned with the United States government to rescue the auto manufacturers and provided 20% of the funding to rescue the corporations and suppliers. From 2004 to 2005, Boothe served as the associate deputy minister of finance and …

Lessons Learned: Bo Lundgren, Maryann Haggerty

Journal of Financial Crises

Bo Lundgren was Sweden’s cabinet minister for fiscal and financial affairs from 1991 to 1994, making him a key leader in managing the nation’s severe financial crisis during those years. Lundgren had a decades-long political career as a member of the Swedish Parliament from 1975 to 2004, was leader of the Moderate Party (1999–2003), and vice president of the European People’s Party in the European Union. He also served from 2004 to 2013 as director general of the Swedish National Debt Office, the country’s central financial agency. Drawing on his experiences in the Swedish crisis, Lundgren has shared his views …

India: Yes Bank Restructuring, 2020, Salil Gupta

Journal of Financial Crises

Yes Bank was suffering from liquidity outflows in the second half of 2019 owing to a combination of deposit withdrawals, invocation of pledged shares, losses from extraordinary credit provisions, and overexposure to stressed sectors like power and infrastructure. In December 2019, Yes Bank reported a Common Equity Tier 1 capital ratio at 0.6%, far below the Reserve Bank of India (RBI) mandated levels, and a quarterly loss of 185 billion Indian rupees (INR; USD 2.5 billion). In early March 2020, the RBI and the Ministry of Finance announced a restructuring plan for India’s fourth-largest private bank, Yes Bank, to prevent …

Criticizing The Asset Repatriation Policy For Tax Amnesty In Indonesia: An Interpretive And Comparative Study, Nidya Hapsari

Jurnal Vokasi Indonesia

Indonesia finds tax amnesty as a reliable funding alternative to develop a sustainable economy. Since 1964, Indonesia has implemented five tax amnesty programs. The latest two programs would offer lower amnesty compensation rates if taxpayers repatriated offshore assets back to Indonesia. However, the tax amnesty repatriation policy merely contributed minimal amounts of repatriated assets and low number of participants. Consequently, it failed to raise sufficient liquidity, fiscal revenues, tax compliance and economic growth. Hence, the study aims to (1) determine the justification and mechanism for the asset repatriation policy and (2) criticize the repatriation policy implementation. Applying interpretive and comparative …

U.S. Government Agency Podcasts, Bert Chapman

Libraries Faculty and Staff Presentations

Presents podcasts from U.S. Government agencies which can be discovered through the U.S. Government Publishing Office's Catalog of Government Publications. Agencies whose podcasts are presented include the National Institutes of Health, U.S. Peace Corps, U.S. Department of Agriculture, Government Accountability Office (GAO), National Park Service, Department of Justice, Federal Reserve System, and U.S. Naval War College.

Searching Govinfo.Gov/, Bert Chapman

Libraries Faculty and Staff Presentations

This U.S. Government Publishing Office (GPO) database provides access to information legal, legislative, and regulatory information produced on multiple subjects by the U.S. Government. Content includes congressional bills, congressional committee hearings and prints (studies), reports on legislation, the text of laws, regulations, and executive orders and multiple U.S. Government information resources covering subjects from accounting to zoology.

Essays On The Dynamics Of Subnational Public Finance In Indonesia, Much Rosidi

Theses and Dissertations--Public Policy and Administration

This dissertation comprises three essays that collectively explore the intricacies of subnational public finance in Indonesia: vehicle tax amnesty, property tax competition, and corruption. The research aims to understand the dynamics shaping fiscal policies at the subnational level.

In the first essay, I examine vehicle tax amnesty programs in Indonesia that have been very popular in dealing with high delinquency rates. From 2008 to 2020, provincial amnesties occurred every 2.5 years on average. Using the variation in the timing of the province’s amnesty adoptions, I estimate the effect of vehicle tax amnesty on vehicle tax revenue using difference-in-differences. The short-run …

Relationships Between Local Revenue And Expenditure Policies And Urban Housing Markets, Lucas Taulbee

Theses and Dissertations--Public Policy and Administration

This dissertation consists of three essays on urban/local public finance, specifically residential property tax assessment and the provision of local public services. A general theme of the essays is the interplay between local financial policies and housing markets. Both revenue (tax) and expenditure policies can have significant effects on housing prices which can, in turn, have feedback effects on current and future revenues and expenditures. In the first chapter, Assessment Regressivity and Capitalization of Property Taxes, I consider assessment regressivity, the phenomenon in which higher-priced homes tend to be underassessed while lower priced homes tend to be overassessed. This may …

Towards Inclusive Public Administration Systems: Public Budgeting From The Perspective Of Critical Race Theory, Juan Pablo Martínez Guzmán, Meagan M. Jordan, Philip G. Joyce

School of Public Service Faculty Publications

While there is a developing consensus that governments need to address systemic racism, public administration scholarship has not played a large role in supporting policymakers who want to achieve that end. To institutionalize that effort, we analyze the budget process as a setting to identify inequities and incorporate social equity given its overarching reach across all programs and policies. This article uses the tenets of critical race theory to illustrate how to use the budget process to incorporate equity. The resulting racial equity budgeting (REB) framework has three tenets: acknowledging and correcting historic biases, increasing the voice of nondominant groups, …

Essays On Public Finance And International Finance, Deepti Sikri

Electronic Theses & Dissertations (2024 - present)

The first chapter examines New York State's Fiscal Score Monitoring program to find the effect of two quality labels on school district outcomes: fiscal stress scores, reflecting the budget solvency, and environmental stress labels reflecting economic and demographic conditions. Using the NYS school district data from 2013-22, I employ the regression discontinuity design to find the effect of stress labels, in response to the political pressure on district finances, housing, and school outcomes. I find the effect of fiscal stress label is limited, leading to a decrease in the fund balance ratio and an increase in the tax rate. However, …

Reducing Food Scarcity: The Benefits Of Urban Farming, S.A. Claudell, Emilio Mejia

Journal of Nonprofit Innovation

Urban farming can enhance the lives of communities and help reduce food scarcity. This paper presents a conceptual prototype of an efficient urban farming community that can be scaled for a single apartment building or an entire community across all global geoeconomics regions, including densely populated cities and rural, developing towns and communities. When deployed in coordination with smart crop choices, local farm support, and efficient transportation then the result isn’t just sustainability, but also increasing fresh produce accessibility, optimizing nutritional value, eliminating the use of ‘forever chemicals’, reducing transportation costs, and fostering global environmental benefits.

Imagine Doris, who is …

The Role Of U.S. Government Regulatioms, Bert Chapman

Libraries Faculty and Staff Presentations

Provides detailed coverage of information resources on U.S. Government information resources for federal regulations. Features historical background on these regulations, details on the Federal Register and Code of Federal Regulations, includes information on individuals can participate in the federal regulatory process by commenting on proposed agency regulations via https://regulations.gov/, describes the role of presidential executive orders, refers to recent and upcoming U.S. Supreme Court cases involving federal regulations, and describes current congressional legislation seeking to give Congress greater involvement in the federal regulatory process.

Building Before: Community Resiliency As Emergency Management, Alexandria Rinne

Honors Program: Senior Projects (Public)

This project seeks to address gaps in emergency preparedness education related to tornado response. Through an examination of current research about best practices for tornado emergency management response and an examination of the needs of FEMA Regions 7 and 8, the author has identified key strategies and stakeholders to increase positive outcome through building community engagement and resiliency. Three presentations were created for delivery to key community stakeholders—local government officials; non-governmental organizations, social networks, and associations; and individual private citizens. The project offers an overview of background research and provides presentation slide decks, scripts, and discussion guides, all created with …