522 research outputs found
Business model and ESG pillars: The impacts on banking default risk
The recent banks' failures have highlighted the importance of improving banking sector supervision, emphasizing the need to adopt a holistic approach to risk assessment based on an evaluation of a bank's business model (BBM) that combines financial (e.g., bank's balance data) and non-financial information (e.g., bank's ESG performance). In this study, we explore the joint effect of BBM and their environmental (ENV), social (SOC), and governance (GOV) pillars performance on banks' riskiness profile. The study uses a sample of 639 EU banks from 2013 to 2022 and applied a random effects model. Our findings suggest wholesale and retail banks could mitigate default risk, enhancing their ENV pillar performance. Differently, investment banks are encouraged to improve their governance best practices and structure to take advantage in terms of riskiness reduction. These results remain consistent after a series of robustness tests, including the 2SLS model and the Arellano coefficient estimation. Our paper offers practical implications for banking supervisory authorities and practitioners, encouraging to adopt a diversified ESG investment strategy according to bank-specific business models
The risk‐taking channel in the United States : A GVAR approach
Using a panel of large U.S. banks, we examine banks' risk‐taking behaviour in response to monetary policy shocks. Our investigation provides support for the presence of a risk‐taking channel: banks' non‐performing loans increase in the medium to long‐run following an expansionary monetary policy shock. We also find that banks' capital structure plays an important role in explaining bank's risk‐taking appetite. Impulse response analysis shows that shocks emanating from larger banks spill over to the rest of the sector but no such effect is observed for smaller banks. These findings are confirmed for banks' Z‐score
THE COST STRUCTURE OF MICROFINANCE INSTITUTIONS IN EASTERN EUROPE AND CENTRAL ASIA
Microfinance institutions are important, particularly in developing countries, because they expand the frontier of financial intermediation by providing loans to those traditionally excluded from formal financial markets. This paper presents the first systematic statistical examination of the performance of MFIs operating in Eastern Europe and Central Asia. A cost function is estimated for MFIs in the region from 1999-2004. First, the presence of subsidies is found to be associated with higher MFI costs. When output is measured as the number of loans made, we find that MFIs become more efficient over time and that MFIs involved in the provision of group loans and loans to women have lower costs. However, when output is measured as volume of loans rather than their number, this last finding is reversed. This may be due to the fact that such loans are smaller in size; thus for a given volume more loans must be made.http://deepblue.lib.umich.edu/bitstream/2027.42/40195/3/wp809.pd
The Threat of Capital Drain: A Rationale for Public Banks?
This paper yields a rationale for why subsidized public banks may be desirable from a regional perspective in a financially integrated economy. We present a model with credit rationing and heterogeneous regions in which public banks prevent a capital drain from poorer to richer regions by subsidizing local depositors, for example, through a public guarantee. Under some conditions, cooperative banks can perform the same function without any subsidization; however, they may be crowded out by public banks. We also discuss the impact of the political structure on the emergence of public banks in a political-economy setting and the role of interregional mobility
Transverse Spin Structure of the Nucleon through Target Single Spin Asymmetry in Semi-Inclusive Deep-Inelastic Reaction at Jefferson Lab
Jefferson Lab (JLab) 12 GeV energy upgrade provides a golden opportunity to
perform precision studies of the transverse spin and
transverse-momentum-dependent structure in the valence quark region for both
the proton and the neutron. In this paper, we focus our discussion on a
recently approved experiment on the neutron as an example of the precision
studies planned at JLab. The new experiment will perform precision measurements
of target Single Spin Asymmetries (SSA) from semi-inclusive electro-production
of charged pions from a 40-cm long transversely polarized He target in
Deep-Inelastic-Scattering kinematics using 11 and 8.8 GeV electron beams. This
new coincidence experiment in Hall A will employ a newly proposed solenoid
spectrometer (SoLID). The large acceptance spectrometer and the high polarized
luminosity will provide precise 4-D (, , and ) data on the
Collins, Sivers, and pretzelocity asymmetries for the neutron through the
azimuthal angular dependence. The full 2 azimuthal angular coverage in the
lab is essential in controlling the systematic uncertainties. The results from
this experiment, when combined with the proton Collins asymmetry measurement
and the Collins fragmentation function determined from the ee collision
data, will allow for a quark flavor separation in order to achieve a
determination of the tensor charge of the d quark to a 10% accuracy. The
extracted Sivers and pretzelocity asymmetries will provide important
information to understand the correlations between the quark orbital angular
momentum and the nucleon spin and between the quark spin and nucleon spin.Comment: 23 pages, 13 figures, minor corrections, matches published versio
The COMPASS Experiment at CERN
The COMPASS experiment makes use of the CERN SPS high-intensitymuon and
hadron beams for the investigation of the nucleon spin structure and the
spectroscopy of hadrons. One or more outgoing particles are detected in
coincidence with the incoming muon or hadron. A large polarized target inside a
superconducting solenoid is used for the measurements with the muon beam.
Outgoing particles are detected by a two-stage, large angle and large momentum
range spectrometer. The setup is built using several types of tracking
detectors, according to the expected incident rate, required space resolution
and the solid angle to be covered. Particle identification is achieved using a
RICH counter and both hadron and electromagnetic calorimeters. The setup has
been successfully operated from 2002 onwards using a muon beam. Data with a
hadron beam were also collected in 2004. This article describes the main
features and performances of the spectrometer in 2004; a short summary of the
2006 upgrade is also given.Comment: 84 papes, 74 figure
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