137,775 research outputs found

    What macroeconomic shocks affect the German banking system? Analysis in an integrated micro-macro model

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    We analyze what macroeconomic shocks affect the soundness of the German banking system and how this, in turn, feeds back into the macroeconomic environment. Recent turmoils on the international financial markets have shown very clearly that assessing the degree to which banks are vulnerable to macroeconomic shocks is of utmost importance to investors and policy makers. We propose to use a VAR framework that takes feedback effects between the financial sector and the macroeconomic environment into account. We identify responses of a distress indicator for the German banking system to a battery of different structural shocks. We find that monetary policy shocks, fiscal policy shocks, and real estate price shocks have a significant impact on the probability of distress in the banking system. We identify some differences across type of banks and different distress categories, though these differences are often small and do not show any systematic patterns. --VAR,banking sector stability,sign restriction approach

    Analyzing financial sectors in transition : with special reference to the Former Soviet Union

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    This paper proposes a framework for analyzing the evolution of financial sectors in economies transiting from command to market structures. Most commentators have tended to regard this"Transition"as an undifferentiated period to be traversed as rapidly as possible. In doing so they ignore the increasing evidence that the Transition can be an extended, even enduring, state of the world, resulting from a complex interaction of economic, political, cultural and psychological factors. As such, it can and does generate incentives which fundamentally distort the behavior of economic agents in unpredictable ways. The authors argue that one result of ignoring the true messiness of the Transition is that the analysis and policy recommendations offered to governments can be flawed and often provide conclusions which are odds with the reality on the ground. The paper discusses this concern and proposes a simple analytical framework both for focusing on the Transition itself and also for use in defining and evaluating possible public policy interventions for the banking sector. This paper is organized as follows. Section II sketches the main shortcomings of the traditional analyses of the financial sector in transition - particularly the limitations of current thinking on the sequencing of financial sector reforms. Section III introduces and elaborates on the basic framework proposed. Section IV uses the framework to distill some simple but important propositions about transition banking. Section V provides an initial qualitative test of the framework, by using it as a lens through which to view some of the characteristics of transition banks which we have observed. It shows that behavior patterns which, at first glance, seem curious and counterproductive, do indeed have a rational explanation when viewed in relation to the analytical framework we propose. Section VI applies the proposed analytical approach to assess the appropriateness of various interventions -- especially those which have proved popular in the World Bank -- to support the financial sector transition. Two Annexes then elaborate particular aspects of the analysis. Annex 1 assesses how our analysis might recondition thinking about the appropriate regulatory and supervisory structures for transition banking. Annex 2 provides some initial empirical results based on our proposed framework of analysis.Environmental Economics&Policies,Banks&Banking Reform,Financial Intermediation,Payment Systems&Infrastructure,Labor Policies,Financial Intermediation,Environmental Economics&Policies,Insurance&Risk Mitigation,Financial Crisis Management&Restructuring,Banks&Banking Reform

    Financial Intermediation, Capital Accumulation and Crisis Recovery

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    This paper integrates banks into a two-sector neoclassical growth model to account for the fact that a fraction of firms relies on banks to finance their investments. There are four major contributions to the literature: First, although banksā€™ leverage amplifies shocks, the endogenous response of leverage to shocks is an automatic stabilizer that improves the resilience of the economy. In particular, financial and labor market institutions are essential factors that determine the strength of this automatic stabilization. Second, there is a mix of publicly financed bank re-capitalization, dividend payout restrictions, and consumption taxes that stimulates a Pareto-improving rapid build-up of bank equity and accelerates economic recovery after a slump in the banking sector. Third, the model replicates typical patterns of financing over the business cycle: procyclical bank leverage, procyclical bank lending, and countercyclical bond financing. Fourth, the framework preserves its analytical tractability wherefore it can serve as a macro-banking module that can be easily integrated into more complex economic environments

    Management Accounting Practices and Discourses Change: The role and use of Management Accounting Systems

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    This paper aims to trace the development of management accounting systems (MAS) in a Portuguese bank, where an activity based costing system (ABC) has been trialled for implementation over the past few years, as a means to improving the economy, efficiency and effectiveness of employee activity. This initiative can be located in a wider cultural change in Portuguese banking towards global (i.e. US derived) strategies and processes, but within an organizational world where older traditions remain powerful. The research undertaken here is a longitudinal case study of organisational change in one institution based on a criticalinterpretive model. Although drawing on the interpretive tradition since it is concerned with actorsā€™ perceptions, interpretations and beliefs, it also draws on a more historically focused Foucault-inspired critical framework of the kind developed in the work of Hoskin and Macve (e.g. 1986, 1988, 1994, 2000), and in the research into the financial sector undertaken by Morgan and Sturdy (2000). The particular model developed here is designed to enable the exploration of the effect of accounting practices on change across time from three perspectives ā€“ changing structures, changing discourses and the effect of both of these processes on power relations. The research highlights the increase in visibility and perceived importance of accounting in the banking sector, and how accounting is significant beyond its technical roles. The study provides new insights into how management accounting practices, along with other organisational systems, play an important role questioning, visualising, analysing, and measuring implemented strategies. As the language and practice of management have shifted towards strategy and marketing discourses, patterns of work, organisation and career are being restructured, in often under-appreciated ways, by accounting practices.

    Norms of language choice and use in relation to listening and speaking: the realities of the practice in the Malaysian banking sector

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    Sociolinguists have pointed to the current linguistic development of the present era as being marked by a complex interplay of sociolinguistic concerns, among which are contradictions between global networks, local identities, (Barber, 1995; Castells, 2000), and also in norms in language choice and use. Economic and social globalization has created a strong demand for an international lingua franca, thus furthering English's presence as a global language (Crystal, 1997). However, local languages remain influential and exert a presence in a multilingual situation. This study attempts to relate the use of the global language to that of the local languages in the Malaysian banking sector which plays a dominant role as an economic powerhouse. Within this financial sector, the matrix of language as a medium of expression provides a setting for investigating situated norms of language choice and use among multilingual employees in the Malaysian banking sector. Data were collected via a survey questionnaire. Fishman's (1972) theoretical framework is adopted and extended to the workplace context in order to examine the intricacies of the norms of language choice and use in relation to specifically the listening and speaking skills. These two language skills have been prioritized by Malaysian employees as the most needed in the workplace (Abdullah et al., 2010). The study gives focus to these two skills and the specific domains of use to illustrate the competing patterns of language choice in a multilingual Malaysian workplace

    Logics of Action, Globalization, and Employment Relations Change in China, India, Malaysia, and the Philippines

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    A logic of action framework is developed in order to conceptualize and understand the impact of globalization on employment relations, as well as to predict the future trajectory of employment relations. The argument is that the interplay between three different logics of action, i.e., the logic of competition, the logic of industrial peace, and the logic of employment-income protection determines the employment relations pattern in any given nation. The strengths of the logics themselves are determined by five often related factors, i.e., economic development strategy, the intensity of globalization, union strength, labor market features and government responsiveness to workers. Drawing on extensive field research on national policies and workplace practices in India, China, the Philippines and Malaysia, we show support for our framework. We find that ER patterns are reflect different combinations of logic strengths, that globalization\u27s impact on employment relations is not only complex, but contingent, and we suggest that long term convergence in employment relations is unlikely given variations in the combinations of logic strengths in different countries, and changes in logic strengths over time
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