Parallel efficiency of a boundary integral equation method for nonlinear water waves

We describe the application of domain decomposition on a boundary integral method for the study of nonlinear surface waves on water in a test case for which the domain decomposition approach is an important tool to reduce the computational effort. An important aspect is the determination of the optimum number of domains for a given parallel architecture. Previous work on hetero- geneous clusters of workstations is extended to (dedicated) parallel platforms. For these systems a better indication of the parallel performance of the domain decomposition method is obtained because of the absence of varying speed of the processing elements

Housing Prices, Bank Lending, and Monetary Policy

In order to gain more insight into the relationship between housing prices and mortgage lending, we estimate models for both the Dutch housing and the mortgage market. The empirical analysis presented in this paper offers support for the hypothesis that in the Netherlands housing prices and mortgage lending are interdependent. According to our model, housing prices were influenced by changes in bank lending criteria during the estimation period, even when we control for variables such as disposable household income, mortgage interest rate, demographic developments and the housing stock. Mortgage lending was found to be dependent on housing prices as well as disposable income. Our analysis further suggests that in the short run housing prices can deviate substantially from their long-run equilibrium value.housing prices, mortgage market, monetary policy

Foreign banks and foreign currency lending in emerging Europe

Based on survey data from 193 banks in 20 countries we provide the first bank-level analysis of the relationship between bank ownership, bank funding and foreign currency (FX) lending across emerging Europe. Our results contradict the widespread view that foreign banks have been driving FX lending to retail clients as a result of easier access to foreign wholesale funding. Our cross-sectional analysis shows that foreign banks do lend more in FX to corporate clients but not to households. Moreover, we find no evidence that wholesale funding had a strong causal effect on FX lending for either foreign or domestic banks. Panel estimations show that the foreign acquisition of a domestic bank does lead to faster growth in FX lending to households. However, this is driven by faster growth in household lending in general not by a shift towards FX lending.Foreign banks; FX lending; financial integration; Emerging Europe

Foreign banks in transition countries. To whom do they lend and how are they financed?

We use focused interviews with managers of foreign parent banks and their affiliates in Central Europe and the Baltic States to analyse the small-business lending and internal capital markets of multinational financial institutions. Our approach allows us to complement the standard empirical literature, which has difficulty in analysing important issues such as lending technologies and capital allocation. We find that the acquisition of local banks by foreign banks has not led to a persistent bias in these banks’ credit supply towards large multinational corporations. Instead, increased competition and the improvement of subsidiaries’ lending technologies have led foreign banks to gradually expand into the SME and retail markets. Second, it is demonstrated that local bank affiliates are strongly influenced by the capital allocation and credit steering mechanisms of the parent bank.foreign banks, transition economies, small-business lending, internal capital markets

Firms' Dynamic Adjustment to Target Capital Structures in Transition Economies

We study the capital structure dynamics of Central and Eastern European firms in order to get a better understanding of the quantitative and qualitative development of the financial systems in this region. The dynamic model we use endogenizes the target leverage as well as the adjustment speed and is applied to microeconomic data for ten countries. We find that during the transition process firms generally increased their leverage, lowering the gap between actual and target leverage. Profitability and age are the most robust determinants of capital structure targets. Older firms attract more bank debt, whereas profitability decreases firms’ leverage targets. While banking system development has in general enabled firms to get closer to their leverage targets, information asymmetries between firms and banks are still important. As a result, firms prefer internal finance above bank debt (pecking order behaviour) and adjust leverage only slowly.capital structure dynamics, transition economies, financial system development

Foreign Currency Lending in Emerging Europe: Bank Level Evidence

Based on survey data from 193 banks in 20 countries we provide the first bank-level analysis of the determinants of foreign currency (FX) lending in Emerging Europe. We find that FX lending by all banks, regardless of their ownership structure, is strongly determined by the macroeconomic environment. We find no evidence of foreign banks ‘pushing’ FX loans indiscriminately because of easier access to wholesale funding in foreign currency. In fact, while foreign banks do lend more in FX to corporate clients, they do not do so to retail clients. We also find that after a take-over by a foreign bank, the acquired bank does not increase its FX lending any faster than a bank which remains in domestic hands.Foreign currency lending;currency mismatch;foreign banks;financial stability

Modulation equations near the Eckhaus boundary: the KdV equation

We are interested in the description of small modulations in time and space of wave-train solutions to the complex Ginzburg-Landau equation \begin{align*} \partial_T \Psi = (1+ i \alpha) \partial_X^2 \Psi + \Psi - (1+i \beta ) \Psi |\Psi|^2, \end{align*} near the Eckhaus boundary, that is, when the wave train is near the threshold of its first instability. Depending on the parameters $\alpha$, $\beta$ a number of modulation equations can be derived, such as the KdV equation, the Cahn-Hilliard equation, and a family of Ginzburg-Landau based amplitude equations. Here we establish error estimates showing that the KdV approximation makes correct predictions in a certain parameter regime. Our proof is based on energy estimates and exploits the conservation law structure of the critical mode. In order to improve linear damping we work in spaces of analytic functions.Comment: 44 pages, 8 figure