We measure the impact of bank capital requirements on corporate borrowing, investment, and employment using loan-level data. The Basel II regulatory framework makes capital requirements vary across ...both banks and firms, which allows us to control for time-varying firm-level risk and bank-level credit supply shocks. We find that a 1 percentage point increase in capital requirements reduces lending by 2.3%–4.5%. Firms can attenuate this reduction by substituting borrowing across banks, but only to a limited extent. The resulting reduction in borrowing capacity affects significantly both investment and employment: for firms whose effective capital requirements increase by 1 percentage point, fixed assets are reduced by 1.1%, capital expenditures by 2.7%, and employment by 0.8%.
This paper was accepted by Tomasz Piskorski, finance.
Using AI to Enhance Business Operations Tarafdar, Monideepa; Beath, Cynthia M; Ross, Jeanne W
MIT Sloan management review,
07/2019, Letnik:
60, Številka:
4
Journal Article
Recenzirano
Enterprise cognitive computing (ECC)--the use of AI to enhance business operations--involves embedding algorithms into applications that support organizational processes. ECC applications can ...automate repetitive, formulaic tasks and, in doing so, deliver orders-of-magnitude improvements in the speed of information analysis and in the reliability and accuracy of outputs. The power of ECC applications stems from their ability to reduce search time and process more data to inform decisions. That's how they enhance productivity and free employees to perform higher-level work--specifically, work that requires human adaptability and creativity. Ultimately, ECC applications can enhance operational excellence, customer satisfaction, and employee experience. Here, Tarafdar et al discuss how organizations can improve processes and capture value through ECC.
We assess the impact of bank deregulation on the distribution of income in the United States. From the 1970s through the 1990s, most states removed restrictions on intrastate branching, which ...intensified bank competition and improved bank performance. Exploiting the cross-state, cross-time variation in the timing of branch deregulation, we find that deregulation materially tightened the distribution of income by boosting incomes in the lower part of the income distribution while having little impact on incomes above the median. Bank deregulation tightened the distribution of income by increasing the relative wage rates and working hours of unskilled workers.
In the recent Basel Accords, the expected shortfall (ES) replaces the value-at-risk (VaR) as the standard risk measure for market risk in the banking sector, making it the most popular risk measure ...in financial regulation. Although ES is—in addition to many other nice properties—a coherent risk measure, it does not yet have an axiomatic foundation. In this paper, we put forward four intuitive economic axioms for portfolio risk assessment—monotonicity, law invariance, prudence, and no reward for concentration—that uniquely characterize the family of ES. Therefore, the results developed herein provide the first economic foundation for using ES as a globally dominating regulatory risk measure, currently employed in Basel III/IV. Key to the main results, several novel notions such as tail events and risk concentration naturally arise, and we explore them in detail. As a most important feature, ES rewards portfolio diversification and penalizes risk concentration in a special and intuitive way, not shared by any other risk measure.
This paper was accepted by Manel Baucells, decision analysis.
El Paraninfo o también denominado Teatro Académico de la Nau Gran, uno de los lugares más emblemáticos de la Universitat de València, albergó los días 22 y 23 de octubre de 2020, la celebración del ...II Congreso Internacional sobre Derecho Bancario Europeo. La Banca pública de inversión. Su director, el Dr. D. Juan Antonio Ureña Salcedo, es titular de la nueva cátedra Jean Monnet de la Universitat de València, financiada por el programa Erasmus+ de la Unión Europea, 2020-2023, European banking Public Law, 620731-EPP-1-2020-1-ES-EPPJMO-CHAIR. Gracias a esta condición, ha sido posible la organización del acto otorgándole un merecido reconocimiento no sólo a escala nacional sino también europea. El hecho de que se trate de la segunda edición no constituye un objeto casuístico. Su organización surge tras el éxito de la primera edición, que versaba sobre “El Derecho bancario de la Unión Europea y el sistema bancario valenciano” y que tuvo lugar los días 24, 25 y 26 de octubre de 2018, en la NAU Gran y el Salón de Grados de la Facultat de Dret de la Universitat de València. Los resultados de las investigaciones expuestas, fueron ulteriormente publicadas en un manual titulado Unión Bancaria Europea. Lecciones de Derecho Público, coordinado por el Dr. D. Juan Antonio Ureña Salcedo y publicado por la editorial Iustel, en 2019. Con todo, el Derecho bancario europeo no es estanco. Los interrogantes que se extraen de la crisis económica provocada por la Covid-19 y las insuficiencias reguladoras, que siguen marcando al sector bancario, no pueden ser olvidados. Con este objeto se gestó la segunda edición de 2020, marcada por la excelencia de los ponentes, que combinaban la experiencia teórica y práctica del sector bancario, y su contenido dirigido a la comunidad académica, profesionales en ejercicio y curiosos de este sector. Entre los aspectos innovadores que presidió la segunda edición, encontramos la oferta de una doble vía abierta a la participación: la presencial y la virtual. En la opción presencial, se cuidaron cada una de las recomendaciones sanitarias garantizando así, el adecuado desarrollo del Congreso en la sede central. Por su parte, la participación online fue posible a través de la plataforma Blackboard Collaborate Ultra y otras fórmulas de streaming habilitadas que permitieron seguir en riguroso directo el Congreso.
Abstract
Trust and confidence are the foundations of a banker-customer relationship. As a result, any information customers submit to their bankers is expected to be kept confidential. This ...expectation can only be met if the relevant legislative frameworks are in place to ensure that bankers are held accountable for their confidentiality agreements. While there is legislation in place to protect the privacy of customer information in Tanzania, a growing number of laws, notably those dealing with crime prevention and control, have been enacted, with the consequence of undermining bankers’ confidentiality obligations. Therefore, this article examines how recent legislative and judicial developments have addressed the confidentiality obligations imposed on bankers. In general, it has been observed and established that the protection of customers’ information provided by banking laws is usually degraded by other laws, particularly those pertaining to crime prevention, hence weakening banker’s duty of confidentiality.
Purpose of the study: The research aims to study and analyze the reality of reserves in Islamic banks in light of Financial Accounting Standard No. 35 issued by AAOIFI in 2018. In addition to ...determining the accounting irregularities or errors, in the practice of accounting and disclosure related to reserves in Saudi Islamic banks.
Theoretical Framework: The research is based on the financial standards of the Islamic banks. Recent financial crises have prompted increased attention from the international community on the need for domestic financial institutions to be strengthened in order to better withstand subsequent emergencies. To ensure national and international financial stability, standards have been developed and implemented to encourage better policies and stronger institutional and market foundations. The international standards community's initiatives provide a comprehensive approach to promote the financial standards of the Islamic banks. It is crucial that self-assessments be supplemented with an impartial external check on conformity with standards.
Design/Methodology/Population: The researchers applied the inductive analytical approach for evaluating the financial standards of the Islamic banks. The study population consists Islamic banks In Saudi Arabia: Bank Albilad, Al-Rajhi Bank, and Alinma Bank. The research analyzed the financial statements of three Islamic banks.
Findings: The research concluded that all Saudi Islamic banks do not apply the accounting standards issued by AAOIFI. These bank's financial statements do not reflect the reality of their financial position, because they only apply traditional accounting standards. The Saudi Islamic banks do not apply the accounting standard issued by AAOIFI Standard No.35. The reasons behind the non-application of Islamic accounting standards issued by the AAOIFI in Saudi Islamic banks are the Saudi Banking Law and the instructions of the Saudi Central Bank. In addition, shareholders in Islamic banks bear all reserves and provisions.
Research, Practical and Social Implications: The research suggests that banking supervisory authorities in the Kingdom of Saudi Arabia have to take the necessary measures to amend the laws and instructions related to Islamic banks., and to follow up efforts by AAOIFI with central banks in the countries in which Islamic banks operate to oblige Islamic banks to the accounting standards issued by AAOIFI.
Originality/Value: The research is unique in identifying the importance of the AAOIFI standards in improving the financial standards of the Islamic banks.
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