We cannot afford to continue on the current path and let banks do as they please regardless of the risks for taxpayers and the economy, according to Joseph Stiglitz.
Research on bank efficiency has developed in two separate streams: econometric studies and Data Envelopment Analysis, a linear programming technique. These two branches of literature have developed ...quickly, but separately; in this paper these two approaches have been tested on a common panel of 270 Italian banks, and this has suggested the following: (i) econometric and linear programming results do not differ dramatically, when based on the same data and conceptual framework; (ii) when differences arise, they can be explained by going back to the intrinsic features of the models. Moreover, some findings on Italian banks may be of interest also to the international reader: (i) efficiency scores show a high variance; (ii) the banking system is split in two, between northern and southern banks; (iii) there is a direct (rather than inverse) relationship between productive efficiency and asset quality; (iv) the efficiency of Italian banks did not increase over the period 1988–1992.
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff ...team after discussions with government officials, is published at the option of the member country.
The intensive process of financial European integration, together with the profound transformation and deregulation that has taken place in the Spanish banking system, justifies the evaluation of its ...efficiency in comparison with that of other banking systems. In this context, the aim of this study is to analyze the productivity, efficiency and differences in technology of several banking systems. Using a non-parametric approach together with the Malmquist index, we compare the efficiency, productivity and differences in technology of different European and US banking systems for the year 1992.
This paper describes types of risks encountered in banking systems and ways to prevent and eliminate them. Banking systems are presented in order to have a view on banking activities and processes ...that generates risks. The risks in banking processes are analyzed and the collaborative character of risk management is highlighted. A way to control the risk in banking systems through information security is described. Risks arise from system complexity, thus evaluation and comparison of different configurations are bases for improvements. The Halstead relative complexity function synthesizes system complexity from the point of view of the size of the variables analyzed and the heterogeneity between the variables. Section four was realized by Catalin SBORA. PUBLICATION ABSTRACT
This paper documents the restructuring of 92 Japanese corporations that experienced a substantial decline in operating performance between 1986 and 1990. These firms implement a number of downsizing ...measures such as asset sales, plant closures, and employee layoffs. Firms also expand and diversify, and often restructure their internal operations. Compared to US firms with a similar decline in performance, however, Japanese firms are less likely to downsize, and layoffs affect a smaller fraction of their workforce. The frequency of asset downsizing and layoffs in Japanese firms increases with the ownership by the firm's main bank and other blockholders. Blockholders also increase the probability of management turnover, outside director removals and outside director additions, but decrease the likelihood of acquisitions. We document improvements in operating performance following downsizing actions in Japan.
Since the start of the 2008 - 09 financial crisis, the Polish Overnight Index Average (POLONIA) has persistently been below the policy rate, suggesting a limited influence of the NBP's open market ...operations on the short-term interbank rate. In this regard, this paper analyzes the behavior of the POLONIA spread and explore several potential factors that could influence the spread. An empirical analysis confirms that the negative POLONIA spread is related to a few factors, which include the existence of the structural liquidity in the banking system; bank's unwillingness to lock up liquidity in the NBP bills; the frontloading of banks' fulfillment of the reserve requirements; and external market sentiment. The analysis also shows the effectiveness of the NBP's responses to the financial crisis and structural liquidity surplus.
The current crisis has led to interpretations in terms of models of organization and regulation of financial and banking system in each region and worldwide. Banking systems in developed countries, ...characterized by diversity, concentration of financial intermediation activities, enhancing restructuring operations, the availability for foreign relations will split banking systems in two models: the banking systems of continental Europe, which are less specialized and copied on the American model bank , applied in Japan, based on the principle of strict specialization of institutions. This article analyzes the banking systems in Europe and the perspective from these systems.
This paper examines changes in the balance sheets of the banking system in five East Asian economies which were affected by the 1997 Asian Crisis. These countries have persistently accumulated ...international reserves since the crisis. This paper estimates the impact of reserve accumulation on some important balance sheet variables such as liquid assets, credit and deposits of the banking system by applying panel data techniques. Estimates using data from Thailand, South Korea, Malaysia, Philippines and Indonesia show that there has been robust positive impact of reserve accumulation on the liquid assets and deposits of the banking system after controlling for the effect of other potential variables.
Former socialist countries are characterized by an early transition recession transformation and faced several destabilizing events such as: high levels of inflation, the relative immobility of ...production factors (primarily labor), incorrect or ambiguous definition of property rights; preponderance of sector unemployment; evidence of discrepancies between the revenue rising population, the existence of an underground economy of higher dimensions. Major emerging economies from Central and Eastern Europe are post- communist countries that faced transition after adopting market-based economy and become emerging markets. An important issue during transition was the creation of a two-pillar banking system (e.g. Central Bank and commercial banks), while bank restructuring involves not only profit performing banks but, more importantly, changes in lending practice. The difficulty of restructuring and the magnitude of recapitalization slowed significantly the achievement of independent governance by privatization in state-owned banks. After a short period of market-based economy, emerging countries had been affected by the crisis started in the developed countries (characterized by lower growth, higher unemployment and poverty, and changes in inequality). Through several channels, crisis had affected also emerging countries differently, depending on the extent to which they are vulnerable to particular canals. Romania's status in the context of transition bears the characteristics determined by the situation inherited from the centralized economy and the options of political forces after 1989. The starting point was unfavorable both from an economic perspective, but also social, economic inefficiency due to the existence of industrial projects and sometimes senseless economic, profound structural economic imbalances, sizing of industries and alarming social indicators. Developing countries were affected by the crisis that began in developed countries, characterized by low economic growth, boost unemployment and poverty and inequality changes. A number of transmission channels of the crisis also affected differently, also developing countries, according to the extent that they are vulnerable to certain channels. Emerging economies in Central and Eastern Europe are the post-communist economies that have experienced the transition, after the adoption of market-based economy. In the last part of the paper we are looking for some transmission channels of crisis and some possible effects on post- communist countries during crisis, using dummy variables and some OLS estimators of the major factors identified as transmission channels using a dataset from EBRD databases.
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