Review of Peter J. Montiel 'Macroeconomics in Emerging Markets'

Review of Peter J. Montiel 'Macroeconomics in Emerging Markets'Book review, macroeconomics, emerging markets

The Application of Domain Decomposition to Time-Domain Computations of Nonlinear Water Waves with a Panel Method

In this paper an iterative domain decomposition method for the solution of Laplace's equation is described and its effectiveness in time-domain computations of nonlinear water waves with a panel method is investigated. An important aspect of these computations is the varying shape of the free surface. The convergence of the iterative method is fast and leads to a speedup of the computations in the aforementioned application. The domain decomposition method gives a considerable reduction of memory requirements. Furthermore, it lends itself naturally for parallel computing

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 in Transition Economies: Small Business Lending and Internal Capital Markets

On the basis of focused interviews with managers of foreign parent banks and their affiliates in Central Europe and the Baltics, we analyse foreign banks’ small business lending and internal capital markets. This allows us to complement the standard empirical literature, which has difficulty in measuring important variables such as lending technologies and capital allocation systems. 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, we show that local bank affiliates are strongly influenced by the capital allocation and credit steering mechanisms of the parent bank. The credit growth of subsidiaries therefore potentially depends on the financial health of the foreign based parent bank.foreign banks, transition economies, small business lending, internal capital markets

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