Extensions Of The Scope Of Banking And Financial Institution Operations
Encouraging Banks to Open Branches or Participate in Joint Ventures Abroad In order to support Bangkok as the financial centre in the region, the BoT allowed the commercial banks to open branches in Laos, Kampuchea, Vietnam, Burma, as well as mainland China. These branches could provide banking services not only to the local community, but also to Thai investors or foreign investors who use Thailand as a gateway or springboard to the region. Also, they would gather or collect prime information...
The IMF as an International Lender of Last Resort
In the context of the recent number of financial crises, the need for an international lender of last resort and whether the IMF can take that role for the countries facing an external financing crisis, that is, a massive demand for foreign currency, have been discussed extensively see, for example, Fischer, 1999 Meltzer, 1998 Calomiris, 1998 and Giannini, 1998 . According to the best-known classic writer on the lender of last resort, Walter Bagehot, 'in a crisis, the lender of last resort...
Introduction Trf
A free banking system is a financial system with no central bank or other financial or monetary regulator, and no government intervention. It therefore allows financial institutions to operate freely, subject only to the discipline of market forces and the rules of 'normal' commercial and contract law. Free banking is thus equivalent to financial laissez-faire. Although the idea is strange to most modern economists, there are in fact many instances of relatively free banking in the historical...
Contributors
Helge Berger is currently at the International Monetary Fund. At the time of writing he was Research Director, CESifo Center for Economic Studies and Ifo Institute for Economic Research, Munich, Germany and Senior Lecturer at the University of Munich LMU . Berger received his Masters degree and his PhD in economics from the University of Munich. He has been at Princeton University's Woodrow Wilson School as the John Foster Dulles Visiting Lecturer. He has written a number of papers on German...
Distribution Free Approach
Berger 1993 has proposed the distribution free approach DFA as an alternative to the conventional stochastic frontier technique. Berger points out that the vit component of the composed error term is by definition random and would be expected to average out to zero over time in the context of a panel data sample. Hence, the DFA involves the estimation of a cost function such as the translog separately for each year of the panel data sample. The associated error terms will necessarily be the...
References Fge
Aigner, D.J., Lovell, C.A. and Schmidt, P. 1977 , 'Formulation and estimation of stochastic frontier production function models', Journal of Econometrics, 6, 21-37. Akhavein, J.D., Berger, A.N. and Humphrey, D.B. 1997 , 'The effects of megamer-gers on efficiency and prices evidence from a profit function', Review of Industrial Organisation, 12, 95-139. Altunbas, Y, Liu, M.-H., Molyneux, P. and Seth, R. 2000 , 'Efficiency and risk in Japanese banking', Journal of Banking and Finance, 24 10 ,...
Introduction
The single global banking space is almost a reality. Nine years ago, analysts named 17 banks that they believed were global banks of the future. All were commercial or universal banks. In a 1998 survey, about the only similarity is the number analysts still envisage 17 banks as 'global', or with 'global potential', but they describe a very different grouping. Given the changes in banking topography, today's analysts include more investment than commercial banks in the top ranks see Kahn, 1998 ....
Tables
3.1 European MBS ABS issuance by asset type, 1997 and 1998 62 3.2 Some of the major CLOs issued, as at January 1998 68 3.3 Example of CLOs in facilitating a higher RAROC on investment-grade assets 75 3.4 Comparison of spreads in different types of securitized funding 76 3.5 Breakdown of the SBC Glacier CLO floating rate asset-backed securities 84 3.6 Summary of BIS proposed risk weightings 96 4.1 Currency and home-country relationship in the choice of 4.2 Top underwriters of US debt and equity,...
Choice of Multinational Organizational Form and Multinational Banking Strategy
The choice of an appropriate organizational form for a bank's multinational involvement is dependent not only upon a range of economic and legal circumstances in both foreign and home countries but also upon the individual bank's offshore business strategies. The interaction of these influences means that 'no single route is the best for all countries and all conditions' Rockefeller, 1964, p. 75 . Lees 1974 identifies a list of factors that play a significant role in the choice of...