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Proceeding of 5th Annual Research Conference "System dynamics modeling framework for the financial system", December 16, 2022, Kyiv, Ukraine.

Proceeding of 5th Annual Research Conference "System dynamics modeling framework for the financial system", December 16, 2022, Kyiv, Ukraine.

Proceeding of 5th Annual Research Conference "System dynamics modeling framework for the financial system", December 16, 2022, Kyiv, Ukraine.

Proceeding of 5th Annual Research Conference "System dynamics modeling framework for the financial system", December 16, 2022, Kyiv, Ukraine.

Rationale This article analyses the factors that are contributing to the widening of the spread between the euro short-term rate (€STR) and the deposit facility rate, with a view to assessing monetary policy transmission in the Eurosystem. Takeaways •The key factors that explain the behaviour of this spread are the expansion of the Eurosystem’s balance sheet and the change in the monetary policy stance. •The pass-through of the recent interest rate hikes to money market rates has been effective and cannot explain the widening of the spread. •Once the rate hiking cycle comes to an end, the contraction in the Eurosystem’s balance sheet can be expected to curb or even reverse the trend observed in the spread.

Institutional Credit Markets provides a framework for understanding the institutional funding markets that undergird the U.S. credit system. It traces the evolution of the depository bank model, its non-bank competitors, and the financial conglomerates that span credit and capital markets., https://ecollections.law.fiu.edu/faculty_books/1306/thumbnail.jpg

Institutional Credit Markets provides a framework for understanding the institutional funding markets that undergird the U.S. credit system. It traces the evolution of the depository bank model, its non-bank competitors, and the financial conglomerates that span credit and capital markets., https://ecollections.law.fiu.edu/faculty_books/1306/thumbnail.jpg

In recent time the Central Banks cross the globe employ a range of avenues to communicate their monetary policy decisions and explain to financial markets and the general public the reason for their policy actions. This communication, in turn, gives signals to the financial markets regarding the future trajectories of governmental activities. This study therefore investigated the sensitivity of interest rate to MPC communication from 1st January, 2010 to 30th June, 2020 in Nigera. Series of test were carryout and EGARCH was chosen as the appropriate techniques in which dummy variable was used to capture the meeting days in the variance equation. Data of monetary policy were sourced from CBN website. The results of an EGARCH model show that the communications between Central Bank and the money market are considerably informative and therefore assist to reduce market interest rates' volatility. The study has so concluded that the communication from the Central Bank of Nigeria has an impact on the desired direction of interests. One policy implication of this conclusion is that it is clear enough about the desired policy orientation for the future that CBN communique substance of MPC meetings will guide the market in the proper way. This is consistent with the literature that if Central Bank opens the foundations for monetary policy implementation up to the markets, it raises the odds of controlling agents' expectations. Therefore the study recommends that the meeting should be sustained.

In recent time the Central Banks cross the globe employ a range of avenues to communicate their monetary policy decisions and explain to financial markets and the general public the reason for their policy actions. This communication, in turn, gives signals to the financial markets regarding the future trajectories of governmental activities. This study therefore investigated the sensitivity of interest rate to MPC communication from 1st January, 2010 to 30th June, 2020 in Nigera. Series of test were carryout and EGARCH was chosen as the appropriate techniques in which dummy variable was used to capture the meeting days in the variance equation. Data of monetary policy were sourced from CBN website. The results of an EGARCH model show that the communications between Central Bank and the money market are considerably informative and therefore assist to reduce market interest rates' volatility. The study has so concluded that the communication from the Central Bank of Nigeria has an impact on the desired direction of interests. One policy implication of this conclusion is that it is clear enough about the desired policy orientation for the future that CBN communique substance of MPC meetings will guide the market in the proper way. This is consistent with the literature that if Central Bank opens the foundations for monetary policy implementation up to the markets, it raises the odds of controlling agents' expectations. Therefore the study recommends that the meeting should be sustained.

In an age of reform, Vietnam’s financial systems have come to a critical stage in which the quality of policy-making, independence of the central banking operations and over-risk controls will ultimately be required if the country is set to move forward in a sustainable fashion. Analysts may have different views about Vietnam’s financial economy, but all agree that it has evolved and grown fast over the past three decades. The next course of development will depend on how Vietnamese society views raison d’être of its financial systems and financial health. But the process will much depend on the economic growth of the economy as a whole. Failing to support a sustained growth puts VFS’s existence at risk as economic growth helps mitigate higher risk-taking behavior and contain instability in less competitive markets., info:eu-repo/semantics/published

This paper investigated the effect of selected money market instruments on the growth of the Nigerian economy. Using data obtained from Central Bank of Nigeria Statistical Bulletin 2017, the study employed the Autoregressive Distributive Lag (ARDL) Bound Testing approach to co-integration. Result shows no form of convergence among the variables in the long-run. It also revealed that money market variables are positively related with economic growth rate both in the short and long-run, except for Certificate of Deposit (COD) and Commercial Paper (CPR) that has an inverse relationship with economic growth in the long-run. Broad Money Supply (M2G) does not seem to have a significant relationship with GDPR both in the short and long-run, while Treasury Certificate (TRC) has a significant positive impact on GDPR in the short-run but an insignificant impact on GDPR in the long-run. Thus, caution should be taken by the Central Bank of Nigeria in the use of Treasury Certificate as a means of managing liquidity in the short-run, as its prolonged use would amount to no significant effect in the economy. Also, Certificate of Deposit and Commercial Paper should be used on short term basis, if otherwise; their impact on the economy would be negative.

This paper investigated the effect of selected money market instruments on the growth of the Nigerian economy. Using data obtained from Central Bank of Nigeria Statistical Bulletin 2017, the study employed the Autoregressive Distributive Lag (ARDL) Bound Testing approach to co-integration. Result shows no form of convergence among the variables in the long-run. It also revealed that money market variables are positively related with economic growth rate both in the short and long-run, except for Certificate of Deposit (COD) and Commercial Paper (CPR) that has an inverse relationship with economic growth in the long-run. Broad Money Supply (M2G) does not seem to have a significant relationship with GDPR both in the short and long-run, while Treasury Certificate (TRC) has a significant positive impact on GDPR in the short-run but an insignificant impact on GDPR in the long-run. Thus, caution should be taken by the Central Bank of Nigeria in the use of Treasury Certificate as a means of managing liquidity in the short-run, as its prolonged use would amount to no significant effect in the economy. Also, Certificate of Deposit and Commercial Paper should be used on short term basis, if otherwise; their impact on the economy would be negative.

Досліджено зміст та значення грошового ринку для розвитку економічних процесів. Наведено елементи грошового ринку згідно із зарубіжною практикою: онкольний ринок (Cаll Mоnеy Mаrkеt), кредитування під забезпечення (Cоllаtеrаl Lоаn Mаrkеt), ринок банківських акцептів (Аccеptаncе Mаrkеt), вексельний ринок (Bill Mаrkеt), ринок комерційних паперів (Cоmmеrciаl pаpеrs), ринок депозитних сертифікатів (Cеrtificаtеs оf dеpоsit), кредитування за договорами РЕПО (Rеpurchаsе аgrееmеnts) та міжнародний грошовий ринок. Виділено та проаналізовано склад грошового ринку України: обліковий ринок, міжбанківський ринок і відкритий ринок. Визначено основні об’єкти грошового ринку. Здійснено аналіз базових інструментів грошового ринку в Україні: за елементами грошової маси, відсотковими ставками та обсягами депозитних операцій. Обґрунтовано неефективність процентної політики НБУ на ринку середньо- та довгострокових кредитів, що спричиняє згортання відтворювальних процесів у реальному секторі економіки., Исследована сущность и значение денежного рынка для развития экономических процессов. Выделены элементы денежного рынка согласно зарубежной практики: онкольный рынок (Cаll Mоnеy Mаrkеt), кредитование под обеспечение (Cоllаtеrаl Lоаn Mаrkеt), рынок банковских акцептов (Аccеptаncе Mаrkеt), вексельный рынок (Bill Mаrkеt), рынок коммерческих бумаг (Cоmmеrciаl pаpеrs), рынок депозитных сертификатов (Cеrtificаtеs оf dеpоsit), кредитование по договорам РЕПО (Rеpurchаsе аgrееmеnts) и международный денежный рынок. Выделен и проанализирован состав денежного рынка Украины: учетный рынок, межбанковский рынок и открытый рынок. Определены основные объекты денежного рынка. Осуществлен анализ базовых инструментов денежного рынка в Украине: по элементам денежной массы, процентным ставкам и объемам депозитных операций. Обоснована неэффективность процентной политики НБУ на рынке средне- и долгосрочных кредитов, что вызывает свертывание воспроизводственных процессов в реальном секторе экономики., The paper clarifies the essence and value of the money market for the development of economic processes. Elements of the money market by foreign practices: call money market, collateral loan market, acceptance market, bill market, the market for commercial paper, market certificates of deposit, credit contracts repo (repurchase agreements) and the international money market have been presented. The composition of the monetary market of Ukraine, in particular, the mоnеy mаrkеt accоunts, the interbank market and open market have been highlighted and analyzed. The main objects of the money market have been identified. Also was analyzed base instruments of money market in Ukraine: the elements of the money supply, interest rates and the volume of deposit operations. The ineffectiveness of interest rate policy of the National Bank of Ukraine in the market of medium and long-term credits have been proved, that causing coagulation of reproduction processes in the real economy.

Досліджено зміст та значення грошового ринку для розвитку економічних процесів. Наведено елементи грошового ринку згідно із зарубіжною практикою: онкольний ринок (Cаll Mоnеy Mаrkеt), кредитування під забезпечення (Cоllаtеrаl Lоаn Mаrkеt), ринок банківських акцептів (Аccеptаncе Mаrkеt), вексельний ринок (Bill Mаrkеt), ринок комерційних паперів (Cоmmеrciаl pаpеrs), ринок депозитних сертифікатів (Cеrtificаtеs оf dеpоsit), кредитування за договорами РЕПО (Rеpurchаsе аgrееmеnts) та міжнародний грошовий ринок. Виділено та проаналізовано склад грошового ринку України: обліковий ринок, міжбанківський ринок і відкритий ринок. Визначено основні об’єкти грошового ринку. Здійснено аналіз базових інструментів грошового ринку в Україні: за елементами грошової маси, відсотковими ставками та обсягами депозитних операцій. Обґрунтовано неефективність процентної політики НБУ на ринку середньо- та довгострокових кредитів, що спричиняє згортання відтворювальних процесів у реальному секторі економіки., Исследована сущность и значение денежного рынка для развития экономических процессов. Выделены элементы денежного рынка согласно зарубежной практики: онкольный рынок (Cаll Mоnеy Mаrkеt), кредитование под обеспечение (Cоllаtеrаl Lоаn Mаrkеt), рынок банковских акцептов (Аccеptаncе Mаrkеt), вексельный рынок (Bill Mаrkеt), рынок коммерческих бумаг (Cоmmеrciаl pаpеrs), рынок депозитных сертификатов (Cеrtificаtеs оf dеpоsit), кредитование по договорам РЕПО (Rеpurchаsе аgrееmеnts) и международный денежный рынок. Выделен и проанализирован состав денежного рынка Украины: учетный рынок, межбанковский рынок и открытый рынок. Определены основные объекты денежного рынка. Осуществлен анализ базовых инструментов денежного рынка в Украине: по элементам денежной массы, процентным ставкам и объемам депозитных операций. Обоснована неэффективность процентной политики НБУ на рынке средне- и долгосрочных кредитов, что вызывает свертывание воспроизводственных процессов в реальном секторе экономики., The paper clarifies the essence and value of the money market for the development of economic processes. Elements of the money market by foreign practices: call money market, collateral loan market, acceptance market, bill market, the market for commercial paper, market certificates of deposit, credit contracts repo (repurchase agreements) and the international money market have been presented. The composition of the monetary market of Ukraine, in particular, the mоnеy mаrkеt accоunts, the interbank market and open market have been highlighted and analyzed. The main objects of the money market have been identified. Also was analyzed base instruments of money market in Ukraine: the elements of the money supply, interest rates and the volume of deposit operations. The ineffectiveness of interest rate policy of the National Bank of Ukraine in the market of medium and long-term credits have been proved, that causing coagulation of reproduction processes in the real economy.

Досліджено зміст та значення грошового ринку для розвитку економічних процесів. Наведено елементи грошового ринку згідно із зарубіжною практикою: онкольний ринок (Cаll Mоnеy Mаrkеt), кредитування під забезпечення (Cоllаtеrаl Lоаn Mаrkеt), ринок банківських акцептів (Аccеptаncе Mаrkеt), вексельний ринок (Bill Mаrkеt), ринок комерційних паперів (Cоmmеrciаl pаpеrs), ринок депозитних сертифікатів (Cеrtificаtеs оf dеpоsit), кредитування за договорами РЕПО (Rеpurchаsе аgrееmеnts) та міжнародний грошовий ринок. Виділено та проаналізовано склад грошового ринку України: обліковий ринок, міжбанківський ринок і відкритий ринок. Визначено основні об’єкти грошового ринку. Здійснено аналіз базових інструментів грошового ринку в Україні: за елементами грошової маси, відсотковими ставками та обсягами депозитних операцій. Обґрунтовано неефективність процентної політики НБУ на ринку середньо- та довгострокових кредитів, що спричиняє згортання відтворювальних процесів у реальному секторі економіки., Исследована сущность и значение денежного рынка для развития экономических процессов. Выделены элементы денежного рынка согласно зарубежной практики: онкольный рынок (Cаll Mоnеy Mаrkеt), кредитование под обеспечение (Cоllаtеrаl Lоаn Mаrkеt), рынок банковских акцептов (Аccеptаncе Mаrkеt), вексельный рынок (Bill Mаrkеt), рынок коммерческих бумаг (Cоmmеrciаl pаpеrs), рынок депозитных сертификатов (Cеrtificаtеs оf dеpоsit), кредитование по договорам РЕПО (Rеpurchаsе аgrееmеnts) и международный денежный рынок. Выделен и проанализирован состав денежного рынка Украины: учетный рынок, межбанковский рынок и открытый рынок. Определены основные объекты денежного рынка. Осуществлен анализ базовых инструментов денежного рынка в Украине: по элементам денежной массы, процентным ставкам и объемам депозитных операций. Обоснована неэффективность процентной политики НБУ на рынке средне- и долгосрочных кредитов, что вызывает свертывание воспроизводственных процессов в реальном секторе экономики., The paper clarifies the essence and value of the money market for the development of economic processes. Elements of the money market by foreign practices: call money market, collateral loan market, acceptance market, bill market, the market for commercial paper, market certificates of deposit, credit contracts repo (repurchase agreements) and the international money market have been presented. The composition of the monetary market of Ukraine, in particular, the mоnеy mаrkеt accоunts, the interbank market and open market have been highlighted and analyzed. The main objects of the money market have been identified. Also was analyzed base instruments of money market in Ukraine: the elements of the money supply, interest rates and the volume of deposit operations. The ineffectiveness of interest rate policy of the National Bank of Ukraine in the market of medium and long-term credits have been proved, that causing coagulation of reproduction processes in the real economy.

48 p.

Central bank has a great interest in well-functioning of financial market, since the efficient financial market supports both- the monetary and financial stability goals of the central bank. The transmission of the policy rate into the financial markets and wider economy normally operates via the short end of the yield curve, i.e. in the money markets. The more developed, competitive and liquid the money market, the more effective the transmission of monetary policy is likely to be. At the same time, liquidity and price stability in short-term markets segment will impact the cost of primary issuance for the government and for other fixed-interest issuers. In this respect, it is hard for money markets to develop if design or implementation of monetary policy and operations are suboptimal; while the central bank’s policy operations will become ineffective or less effective if the money markets is underdeveloped. Therefore, it is very important for the monetary policy operational framework to be optimal. This means that monetary policy instruments and procedures should be designed in a manner which will support monetary and financial stability, and boost the money market development. When designing its monetary operations framework, the central bank will need to choose between direct and indirect instruments, passive or active stance towards liquidity management, more or less micro and macro-prudential measures. By doing so, it will mostly define its role on the money market. Due to all these reasons, most central banks operate in the money markets as a part of their monetary policy operations and hence have a vested interest in ensuring that these markets operate effectively. The advancement of these markets should also be accompanied by the development of the appropriate market infrastructure such as robust payment and settlement systems, but, first of all, supportive legal framework.

Tujuan dari penelitian ini adalah membentuk model faktor-faktor ekonomi yang mempengaruhi integrasi IHSG-BEI, Jakarta dengan Indeks Bursa Saham Regional, serta melakukan kajian besaran faktor-faktor ekonomi tersebut dalam mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Variabel makroekonomi yang digunakan adalah money market rate (MMR) yang merefleksikan tingkat suku bunga dan consumer price Index (CPI) yang merefleksikan tingkat inflasi. Untuk melihat keterkaitan bursa saham Indonesia (IHSG) dengan Indeks Bursa Saham Regional peneliti hanya menggunakan bursa saham Singapura (STI) dan bursa saham Hongkong (Hangseng) sebagai variabel yang mewakili bursa saham regional. Bursa saham Singapura dan Hongkong adalah bursa saham terdekat dan berpengaruh terhadap bursa saham Indonesia (IHSG). Data penelitian dibatasi mulai Januari 2002 sampai dengan desember 2012. Untuk menjawab permasalahan yang dirumuskan, maka metode yang digunakan adalah metode vector autoregression (VAR) yang dilanjutkan dengan metode analisis vector error correction model (VECM). Penelitian tentang analisis keterkaitan IHSG dengan Indeks Bursa Saham Regional bermanfaat bagi masyarakat terutama para investor untuk mengetahui faktor-faktor ekonomi yang mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Setelah itu untuk mengetahui besaran faktor-faktor ekonomi tersebut dalam mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Hasil penelitian ini menunjukkan bahwa terjadi kointegrasi di antara pasar modal di Indonesai (BEI) dengan pasar modal regional ( Singapura,Malaysia, Philipina, Thailand, Hongkong dan Jepang).Bursa efek di Singapura (STI) adalah bursa efek yangpalingb anyak pengaruhnya di kawasan yang diteliti. Sedangkan bursa efek di Philipina adalah bursa efek yang paling sedikit dipengaruhi oleh bursa efek di kawasan regional ini.

Tujuan dari penelitian ini adalah membentuk model faktor-faktor ekonomi yang mempengaruhi integrasi IHSG-BEI, Jakarta dengan Indeks Bursa Saham Regional, serta melakukan kajian besaran faktor-faktor ekonomi tersebut dalam mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Variabel makroekonomi yang digunakan adalah money market rate (MMR) yang merefleksikan tingkat suku bunga dan consumer price Index (CPI) yang merefleksikan tingkat inflasi. Untuk melihat keterkaitan bursa saham Indonesia (IHSG) dengan Indeks Bursa Saham Regional peneliti hanya menggunakan bursa saham Singapura (STI) dan bursa saham Hongkong (Hangseng) sebagai variabel yang mewakili bursa saham regional. Bursa saham Singapura dan Hongkong adalah bursa saham terdekat dan berpengaruh terhadap bursa saham Indonesia (IHSG). Data penelitian dibatasi mulai Januari 2002 sampai dengan desember 2012. Untuk menjawab permasalahan yang dirumuskan, maka metode yang digunakan adalah metode vector autoregression (VAR) yang dilanjutkan dengan metode analisis vector error correction model (VECM). Penelitian tentang analisis keterkaitan IHSG dengan Indeks Bursa Saham Regional bermanfaat bagi masyarakat terutama para investor untuk mengetahui faktor-faktor ekonomi yang mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Setelah itu untuk mengetahui besaran faktor-faktor ekonomi tersebut dalam mempengaruhi integrasi IHSG dengan Indeks Bursa Saham Regional. Hasil penelitian ini menunjukkan bahwa terjadi kointegrasi di antara pasar modal di Indonesai (BEI) dengan pasar modal regional ( Singapura,Malaysia, Philipina, Thailand, Hongkong dan Jepang).Bursa efek di Singapura (STI) adalah bursa efek yangpalingb anyak pengaruhnya di kawasan yang diteliti. Sedangkan bursa efek di Philipina adalah bursa efek yang paling sedikit dipengaruhi oleh bursa efek di kawasan regional ini.

This paper presents a theoretical model based on risk diversification to rationalize the observed dichotomy in money markets by which small banks are net providers of funds while large banks become net purchasers. Unlike the existing literature on this topic, the model incorporates liquidity provision by a central bank. In the model, smaller banks are less diversified and more risky which means producing a lower amount of loans through smaller leverage and borrowing in the wholesale money market with larger risk premiums. Because payment needs for settlement purposes are random and because smaller banks face worse rates in the interbank market, in equilibrium they will obtain from the central bank extra funds for precautionary reasons and offer these excess reserves in the money market. The opposite will be true for large banks.

We examine how liquidity is exchanged in different types of Colombian money market networks (i.e. secured, unsecured, and central bank’s repo networks). Our examination first measures and analyzes the centralization of money market networks. Afterwards, based on a simple network optimization problem between financial institutions’ mutual distances and number of connections, we examine the tradeoff between liquidity risk and counterparty risk. Empirical evidence suggests that different types of money market networks diverge in their centralization, and in how they balance counterparty risk and liquidity risk. We confirm an inverse and significant relation between counterparty risk and liquidity risk, which differs across markets in an intuitive manner. We find evidence of liquidity cross-underinsurance in secured and unsecured money markets, but they differ in their nature. Central bank’s role in mitigating liquidity risk is also supported by our results.

We use an information-theoretic approach to describe changes in lending relationships between financial institutions around the time of the Lehman Brothers failure. Unlike previous work that conducts maximum likelihood estimation on undirected networks our analysis distinguishes between borrowers and lenders and looks for broader lending relationships (multi-bank lending cycles) that extend beyond the immediate counter-parties. We detect significant changes in lending patterns following implementation of the Interest on Required and Excess Reserves policy by the Federal Reserve in October 2008. Analysis of micro-scale rates of change in the data suggests these changes were triggered by the collapse of Lehman Brothers a few weeks before.

The volume of world derivatives trade in the context of derivatives exchanges, tools and categories and the interest rate derivatives trading on the Perspektiva Stock Exchange have been analyzed. It was stated that the listed derivatives market and its interest rate segment in Ukraineis only developing. In underdeveloped financial market, crisis state of the economy and the financial system domestic banks, issuers of bonds, foreign currency borrowers, investment firms, real and potential investors in debt securities, such as asset managers, private pension funds, family offices are advised to note the world centers of listed interest rate derivatives trading. The short-term interest rate contracts (STIRs), bond derivatives (based on medium-term and long-term securities of sovereign debt; short-term zero-coupon bills or bonds) are systematized and considered (ininstance of the CME Group traded contracts)., Проанализированы объемы мировой торговли деривативами в разрезе бирж, инструментов и категорий, торговля процентными деривативами на фондовой бирже Перспектива. Отечественным банкам, эмитентам облигаций, валютным заемщикам, финансовым посредникам, инвесторам в долговые ценные бумаги рекомендовано обратить внимание на мировые центры биржевой торговли процентными деривативами. Систематизированы и рассмотрены деривативы на краткосрочные процентные ставки (STIRs) и на ценные бумаги суверенного долга., Проаналізовано обсяги світової торгівлі деривативами у розрізі бірж, інструментів та категорій, торгівлю процентними деривативами на фондовій біржі Перспектива. Вітчизняним банкам, емітентам облігацій, валютним позичальникам, фінансовим посередникам, інвесторам у боргові цінні папери рекомендовано звернути увагу на світові центри біржової торгівлі процентними деривативами. Систематизовано та розглянуто деривативи на короткострокові процентні ставки (STIRs) і на цінні папери суверенного боргу.

Im ersten Teil seines Arbeitspapiers gibt der Autor einen Überblick über das islamische Bankwesen in Theorie und Praxis, wobei er Beispiele aus Malaysia anführt. Im zweiten Abschnitt diskutiert er das Projekt der islamischen Modernisierung im Lichte der westlichen und der nicht-westlichen Einbeziehungen globaler Märkte im Verlauf der sozialen und wirtschaftlichen Entwicklungen. Das islamische Modernisierungsprojekt interpretiert er letztlich als Versuch, die Ökonomie wieder in der Kultur zu verankern und eine Alternative zum westlichen Banking für die muslimischen Länder auf der ganzen Welt bereitzustellen. Das islamische Banking ist kein Zeichen eines inneren Kampfes zwischen traditionellen und modernen Werten, sondern eine Reaktion auf das westliche, desintegrierende Marktmodell. (ICI2), "The question of whether or not the taking of interest is legal or at least legitimate has been discussed in the past over and over again. All great religions took up the issue, and in most cases the outcome was the prohibition of interest (for some time at least) or regulation. With the emergence of trading capitalism financial instruments were required and used in economic long-distance transactions and economic necessities and religious morality had to come to an arrangement. Finally an instrumental rationality came out of the modernisation process, which sacrificed moral concerns for the sake of economic ones. Modern Islam, however, has set codes of conduct even in the economic sphere which have been based an religious grounds. An outcome of this is Islamic banking which operates within rather narrow ethical boundaries. According to its self-understanding it provides an alternative to Western banking for Muslim countries all over the world. The author shall start with a description of Islamic banking in theory and practice and present the case of Malaysia. In the second part of this paper he shall interpret Islamic banking in the light of the Islamic modernisation project, which is in some regards similar, and in others different, to the Asiatic-values rhetoric. Finally the author shall conclude that the Islamic modernisation project is also an attempt to re-embed the economy in culture. From such a perspective Islamic banking is not only an inner struggle between traditional and modernist values, but a reaction to the Western, disembedded market model." (extract)

Recently, Indonesia's economy records very high and stable economic growth. The growth is above 6 percent. Despite the world economic crisis, our economic growth is adequately resistant to turmoil from external crisis. The relatively high economic growth is mainly caused by high domestic demand, both from consumption and investment. The question is how foreign banks can play a role in development of Indonesian economy? In this notes, I discuss several challenges posed by structural changes in Indonesia as well as opportunities for foreign banks to play a role in Indonesian financial development.

El fondo de capital privado tendrá como actividad principal invertir en proyectos cinematográficos, los inversionistas participantes serán previamente perfilados ya que deben tener como característica inicial un alto apetito al riesgo; el fondo recibirá los proyectos que se postulen para integrar un portafolio cinematográfico con el que buscará la maximización de la utilidad generada en box office. En primera instancia el proyecto postulado seráanalizado a través del modelo de valoración de proyectos cinematográficos, para determinar las características de riesgo que éste aportaría al portafolio, en segunda instancia el comité evaluador del fondo con la información financiera y demás variables tomará la decisión de incluir o excluir el proyecto al portafolio final. Este trabajo pretende ampliar el panorama de la ingeniería financiera, buscaevidenciar como se fusionalos principios e instrumentos financieros de manera versátil a cualquier industria, en este caso particular un sector poco convencional como el cinematográfico., The private equity fund will invest principally engaged in film projects, the participating investors will first be profiled as an initial feature should have a high appetite for risk, the fund will receive from running projects to integrate a film portfolio in which sought maximizing the profit generated in box office. First the nominated project analyzed through the model to determine the risk characteristics that this would bring to the portfolio , on appeal the review committee of the fund with financial and other variable information 's decision to include or exclude the project portfolio end. This paper seeks to give an overview as financial engineering versatile way merges any industry , for this we use an unconventional sectors such as the Film .

We study frictions in trading patterns in the Euro money market. We characterize the structure of lending relations during the period of recent financial turmoil. We use a network-topology method on data from overnight transactions in the ElectronicMarket for Interbank Deposits (e-MID) to investigate two main issues. First, we characterize the roles of borrowers and lenders in long-run relationships by providing evidence on network formation at a 3-month frequency. Second, we identify the “key players” in the marketplace and study their behavior. In our formalization, key players are “locally-central banks” within a network that lend (or borrow) large volumes to (from) several counterparties, while borrowing (or lending) small volumes from (to) a small number of institutions. Our results are twofold.We show that the aggregate trading patterns in e-MID are characterized by largely asymmetric relations. This implies a clear difference in the roles of lenders and borrowers, with market positions changing only gradually over time.We also find that the large net lenders exploit their positions as network leaders by imposing aggressive pricing policies on their counterparties.

This paper presents a theoretical model based on risk diversification to rationalize the observed dichotomy in the federal funds market by which small banks are net providers of funds while large banks become net purchasers. As larger banks are more diversified they can raise a larger proportion of funds as equity and provide more loans. To finance these loans, they will need to obtain funds in the wholesale money market. In contrast, smaller banks will be less diversified and will find it harder to raise equity which means producing a lower amount of loans and supplying the extra funds in the wholesale money market. The model also produces a set of testable predictions about the performance of large and small banks that are in line with data for the US.

This article proceeds as follows. Part I outlines briefly the background of MMFs. Part II discusses the role of the board of directors in governing MMFs, a role upon which our proposal would build. Part III discusses MMF-related events during the financial crisis of 2007-2008 and describes the government’s response to these events. Part IV describes the reforms the SEC instituted in 2010. Part V outlines options for further reform. Part VI outlines and discusses benefits and drawbacks of our proposed solution—unrestricted discretionary gating by fund boards. Part VII concludes.

Inflation has proven to be an important obstacle to successful economic adjustment in many countries. Despite both internal and external shocks to the economy, Mozambique has succeeded in controlling the inflation to gain high economic growth. This paper provides an econometric analysis of the dynamics behind the experience of Mozambique. Inflation is driven by both a purchasing power parity relation with South Africa and monetary factors. The result indicates that the country is using a crawling peg exchange rate regime., A earlier version of this paper was published in Discussion papers No. XXE, October 2011, National Directorate of Studies and Policy Analysis, Ministry of Planning and Development, Republic of Mozambique.

De inflatie, de werkloosheid en het herstel van economische groei zijn de belangrijkste indicatoren voor de langetermijnrente. Rentespecialist Edin Mujagic voorziet dat die rente binnen twee tot drie jaar weer uitkomt op vier à vierenhalf procent. Zolang de Europese Centrale Bank geld in de economie pompt, blijft de rente laag.

在全球化和改革開放的進程中，中國在各方面巳經取得了長足的進步，另一方面，外來衝擊也更容易侵入。在本文中我們主要關注世界上最大的兩個經濟體，中國和美國，通過貨幣政策所產生的聯繫。我們建立了若干個VAR 模型來分析美國貨幣政策的改變對於中國的影響以及意義。, 我們發現，匯率波動是最主要的傳導渠道。基於這一點，文中的分析被劃分為兩個子時間段，以2005 年7 月的匯率改革為分隔點。在兩個時間段中，擴張性的美國貨幣政策衝擊都會引起流入中國的國際資本顯著增加，並以非FDI 的“熱錢"流入為主。在匯率改革之前，這一資本流入主要引起不可貿易品的需求增加，從而其相對價格提高，引起實際匯率升值，而對於經常賬戶和貿易收支的影響較小。相比之下，在匯率改革之後，這一資本流入引起的實際匯率升值主要通過名義匯率的調整來實現。雖然國內通貨膨脹壓力降低， 實際匯率波幅也沒有顯著上升，但是由於名義匯率變化對於出口的傳遞程度較高，貿易收支在短期內會明顯惡化。, 為了增強分析的有效性和魯棒性，我們修改了VAR 的結構來觀察這一傳導機制隨著時間的演進。結果證明了最主要的轉折點出現在匯改附近，同時變量之間逐年的動態闕係也證明了以上的結論。, 這些結果表明，在名義匯率和經常賬戶的穩定性，以及國內通貨膨脹的穩定性之間，存在著一個權衡關係。雖然對於浮動匯率制是否會帶來更高的實際匯率波動性本文並未發現很強的證據，但是我們觀察到它導致了經常賬戶更加劇烈的波動。在某些情況下，名義匯率升值甚至可以引起短暫的通貨緊縮現象，這在固定匯率制下是不會出現的。因此，邁向浮動匯率制的副作用不可被完全忽略，其中隱含的風險也在一定程度上說明了“浮動恐懼"這一普遍現象的合理性。, On the transition path to a more globalized and open economy, China has witnessed a great progress in many aspects; meanwhile, external shocks are more likely to invade. In this work we focus on the connection between two largest economies, China and the US, through the channel of monetary policy innovations. Several structural VAR models are developed to analyze what a change in monetary policy stance of US implies for the Chinese economy and why this is important., The principal transmission channel is through adjustment in exchange rates. We divide our analysis into two sub-periods based on the exchange rate reform in July 2005. Across both periods following an expansionary US monetary policy shock there is a burst of capital inflows concentrated within the first year that are dominated by non-FDI inflows, i.e., “hot money“. Before the exchange rate reform, these capital inflows lead to a rise in the demand for non-tradable goods, driving up their relative price, thereby achieving a real exchange rate appreciation. The effect on trade balance is relatively small., Comparatively, after the exchange rate reform, real exchange rate appreciates due to the surge of capital inflows more through changes in nominal exchange rate. The inflationary pressure is alleviated significantly, and the short-run volatility of real exchange rate slightly increases. However, the pass-through of nominal exchange rate changes into exports is much higher, resulting in a short-run deterioration in trade balance severely., To verify the validity and enhance the robustness of our analysis, we revise the identifying VARs to investigate the evolution of transmission over time. We show that the most significant turning point of the transmission channel coincides with the exchange rate reform, and comparison among dynamics of variables on a year-by-year basis confirms the previous conclusions., It seems that there is a trade-off between the stability of nominal exchange rate and the current account, on the one hand, and the stabilization of inflation, on the other hand. Although we find only weak evidence that a more free-floating nominal exchange rate will lead to higher volatility in the real exchange rate, it may introduce higher short-run volatility in the current account. In some cases the appreciation in nominal exchange rate even generates a transitory deflationary effect that is absent under the pegged system. Therefore, the side effects of stepping toward a flexible exchange rate regime must be considered; the potential risk it involves justifies the “fear of floating“ to some extent., Detailed summary in vernacular field only., Detailed summary in vernacular field only., Detailed summary in vernacular field only., Detailed summary in vernacular field only., Yang, Minmin., Thesis (Ph.D.)--Chinese University of Hong Kong, 2012., Includes bibliographical references (leaves 101-110)., Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web., also in Chinese., p.i, Acknowledgement --- p.v, Chapter 1 --- Introduction --- p.1, Chapter 1.1 --- Motivation --- p.1, Chapter 1.2 --- Contributions and Major Findings --- p.5, Chapter 1.3 --- Organization of the Thesis --- p.7, Chapter 2 --- Literature Review --- p.9, Chapter 2.1 --- Open Economy Theories --- p.9, Chapter 2.2 --- Empirical Research on International Transmission --- p.13, Chapter 2.3 --- China as an Open Economy --- p.15, Chapter 3 --- Theory --- p.18, Chapter 3.1 --- Traditional Theory --- p.18, Chapter 3.1.1 --- Transmission under Fixed Exchange Rate Regime --- p.19, Chapter 3.1.2 --- Transmission under Flexible Exchange Rate Regime --- p.25, Chapter 3.2 --- Specific Issues in China --- p.27, Chapter 3.2.1 --- Capital Control --- p.28, Chapter 3.2.2 --- Sterilization --- p.29, Chapter 3.2.3 --- Pass-through of Nominal Exchange Rate to Trade --- p.30, Chapter 3.3 --- Summary --- p.36, Chapter 4 --- Data and Methodology --- p.38, Chapter 4.1 --- Vector Autoregression --- p.38, Chapter 4.2 --- VARs models for the transmission of US monetary policy shocks to China --- p.41, Chapter 4.2.1 --- Benchmark VAR to IdentifyMonetary Policy Shocks in the US --- p.41, Chapter 4.2.2 --- Extend the Benchmark VAR to Include Chinese Variables --- p.45, Chapter 4.3 --- Data --- p.50, Chapter 5 --- Empirical Results --- p.57, Chapter 5.1 --- Overview --- p.57, Chapter 5.2 --- Transmission before the Exchange Rate reform --- p.59, Chapter 5.2.1 --- Capital Inflows --- p.59, Chapter 5.2.2 --- Exchange Rates and Prices --- p.62, Chapter 5.2.3 --- Trade and the Current Account --- p.64, Chapter 5.3 --- Transmission after the Exchange Rate Reform --- p.66, Chapter 5.3.1 --- Capital Inflows --- p.67, Chapter 5.3.2 --- Exchange Rates and Prices --- p.67, Chapter 5.3.3 --- Trade and the Current Account --- p.69, Chapter 5.4 --- Specific Issues in China --- p.70, Chapter 5.4.1 --- Capital Control --- p.71, Chapter 5.4.2 --- Sterilization --- p.71, Chapter 5.4.3 --- Pass-through of Nominal Exchange Rate to Trade --- p.72, Chapter 5.5 --- Summary --- p.77, Chapter 6 --- Robustness: Structural Break in the Transmission --- p.79, Chapter 6.1 --- Methodology --- p.80, Chapter 6.2 --- Empirical Results --- p.87, Chapter 6.3 --- Summary --- p.91, Chapter 7 --- Conclusion and Future Work --- p.92, Bibliography --- p.101, http://library.cuhk.edu.hk/record=b5549657, Use of this resource is governed by the terms and conditions of the Creative Commons “Attribution-NonCommercial-NoDerivatives 4.0 International” License (http://creativecommons.org/licenses/by-nc-nd/4.0/)

"This paper aims to study the return of investment in gold assets quoted at the Paris stock exchange during 54 years, from 1950 to 2003. Contrarily to what is thought about this mythical metal, its risk-return is very inferior to other financial assets (stocks and bonds). While it has a high degree of risk, its return is less than that of the risk-free asset. Moreover for individual investors, investment in gold has given a very low result in real terms. A capital of 100 new francs invested in the gold coin napoleon in December 1949 would have been liquidated for 56 new francs in December 2003. So its real rate of return was -1% per year." (author's abstract)

De kapitaalmarkt is voorlopig nog onstuimig. Gebrek aan vertrouwen en een economische crisis maken de rente op langere termijn nagenoeg onvoorspelbaar. Waar liggen er nog aanknopingspunten voor de kapitaalmarkt?

"Die Kapitalströme, die rund um den Globus bewegt werden, haben sich während der zurückliegenden Jahre verdreifacht. An den internationalen Finanzmärkten steht Lateinamerikas Volkswirtschaften reichlich privates Kapital zur Finanzierung ihrer Entwicklung zur Verfügung. Aber auch öffentliche Entwicklungsbanken haben weiterhin eine wichtige Funktion zu erfüllen. Die Globalisierung des Kapitals eröffnet Chancen, birgt allerdings auch Risiken. Bevorzugt fließt privates Auslandskapital in diejenigen Länder Lateinamerikas, deren dynamische Märkte Wachstumschancen und Profitabilität verheißen, die ihre Finanz- und Kapitalmärkte liberalisiert haben und in denen gesamtwirtschaftliche Stabilität den Kapitalanlegern relative Sicherheit verspricht. Der Nettozufluss ausländischen Kapitals nach Lateinamerika hat sich in den zurückliegenden fünf Jahren deutlich vermindert. Öffentliche Finanzmittel und kommerzielle Bankkredite sind für die meisten Volkswirtschaften der Region nur noch von nachrangiger Bedeutung. Ausländische Direktinvestitionen sind für Lateinamerika zur wichtigsten externen Finanzierungsquelle geworden. Die nationalen und regionalen öffentlichen Entwicklungsbanken müssen sich den neuen Gegebenheiten anpassen und neuen Herausforderungen stellen; dies umfasst insbesondere eine Differenzierung und Profilierung der jeweiligen Kreditvergabepolitik - auch gegenüber der neuen Banco del Sur." (Autorenreferat)

Diplomová práce seznamuje čtenáře s principy a analýzou výnosnosti elektronického investování v eBance, které umožňují klientům prostřednictvím jejich účtů investovat do podílových listů investičních společností ČP Invest, ING Investment Management a Pioneer Investments. Teoretická část provází čtenáře oblastí kolektivního investování, jejími pojmy, teoriemi a právní základnou, dále seznamuje s klasifikací podílových fondů a investičními alternativami českého kapitálového trhu. V úvodu praktické části je čtenáři představena eBanka a její kompletní produktová řada, dále zde autor popisuje proces elektronického investování do podílových listů. Nosným tématem práce je projektová část, ve které autor analyzuje výnosnost elektronického investování do podílových listů a předkládá projektový záměr s cílem zvýšit výnosnost elektronického investování do podílových listů v nabídce eBanky., Master thesis introduces to a reader the principles together with profitability analysis of electronic investing in eBanka. The electronic investing opens for the banks' clients the possibility of investing via their current accounts into the share funds of investment companies ČP Invest, ING Investment Management and Pioneer Investments. The theoretic part of the thesis guides the reader through the aggregate investment field its terms, theories and legal framework. Later on it presents to the reader the classification of the share funds and investment alternatives of Czech capital market. In the preface of the practical part is the eBanka together with its complete product range introduced. Later on the author describes the process of electronic investing into the allotment certificates. The project part, where the author analyzes the profitability of electronic investing into the allotment certificates, is fundamental topic of the thesis. Author submits the project goal aimed to increase the profitability of the electronic investments into the allotment certificates, offered by eBanka., Ústav financí a účetnictví, obhájeno

"We take up the widely held view that the observed discrepancy between law on the books and law in action has prevented economic transition and investigate its role for the failure of the Bulgarian credit market. In doing so, we focus on the role injunctive informal institutions which have become internalized in the course of social development. Based on cross-cultural psychology, we show that a particular bundle of fundamental social norms which constitute basic value orientations have both prevented the development of stabilizing regulations and an overall compliance with prevailing laws." (author's abstract)

This thesis consists of four papers, summarized as follows. "The Term Structure of Interest Rates and the Monetary Transmission Mechanism" This paper provides empirical evidence that the term structure of interest rates is an integral part of the monetary transmission mechanism. We amend the standard New Keynesian model to generate an endogenous term structure where movements in the term structure have a direct effect on agents' spending decisions. The model features bond market segmentation through adjustment costs for bond holdings and transaction costs between money and bonds. The model is able to replicate the main stylized facts concerning the relation between output and the yield spread. "Monetary Aggregates, Long-Term Interest Rates and the Monetary Transmission Mechanism in the Euro Area" We study the relation between money demand shocks and bond yields in the Euro area. We use Bayesian methods to estimate the general-equilibrium model of Marzo, Söderström and Zagaglia where bond prices are an integral part of the monetary transmission mechanism. Taking into account the impact of bond yields on the macroeconomy generates superior in-sample and out-of-sample forecasts for output, inflation and bond yields. The paper also shows that money velocity shocks matter for explaining the dynamics of long-term rates. "Determinacy of Interest Rate Rules with Bond Transaction Services in a Cashless Economy" We consider a cashless New Keynesian model with two types of government bonds. One bond provides transaction services, whereas the other is used only as a store of value. Contrary to Canzoneri and Diba (2005), we show that the Taylor principle is still sacrosant. In general, the results of Leeper (1991) are confirmed. "Money-market segmentation in the Euro area: What has changed during the turmoil?" This paper studies how the pattern of segmentation in the Euro area money market has been affected by the recent turmoil in financial markets. I use nonparametric estimate

'Die Entwicklung des Geld- und Devisenmarktes ist das Spiegelbild des Entstehungsprozesses einer sozialen Marktwirtschaft in Rußland. Die fehlende klare Reformstrategie und die mangelnde Konsequenz in der Durchführung einer effizienten Politik der Kursstabilisierung des Rubel sowie bei der Regulierung der Tätigkeit von Geschäftsbanken und des Devisenmarktes hatten einige schwierige Funktionsprobleme des Geld- und des Devisenmarktes zur Folge. Im ersten Teil wird die Spezifik des Bankensystems und des Geldmarktes untersucht. Besonderes Augenmerk wird auf den Status der Zentralbank sowie die Methoden der Geld- und Kreditregulierung gerichtet, die sich von den Einflußmöglichkeiten des Geldmarktes in den westlichen Ländern grundsätzlich unterscheiden. Es werden die Struktur und die Transaktionen der Geschäftsbanken sowie die Besonderheiten in den Beziehungen zwischen der Bank von Rußland und ihnen untersucht. Auch auf das Problem der 'Dollarisierung' der russischen Wirtschaft wird eingegangen. Der zweite Teil ist der Analyse der rechtlichen und institutionellen Bedingungen für das Funktionieren des Devisenmarktes, seiner Struktur, seinen Entwicklungsetappen und den Problemen des Rubelwechselkurses gewidmet. Hier verdient die Tendenz zur Herausbildung eines einheitlichen Devisenmarktes des Landes Aufmerksamkeit. Als Quellen wurden Gesetzgebungsakte, Regierungsbeschlüsse, Instruktionen der Bank von Rußland, Materialien der Moskauer Interbanken-Devisenbörse, Periodika sowie Arbeiten des Verfassers benutzt.' (Autorenreferat), 'The development of the money and foreign exchange markets offers a mirror image of the process in which a social market economy has been emerging in Russia. The absence of a clear reform strategy and the lack of any consistency in implementing an effective exchange rate stabilization policy for the rouble or in regulating the activity of commercial bands and the foreign exchange market have led to serious functional problems on the money and foreign exchange markets. The first part of this report looks at the specific make-up of the banking system and the money market. Special attention is given to the status of the central bank and to the ways in which money and loans are regulated, which differ fundamentally from the intervention opportunities available to money markets in Western countries. The report examines the structure and transactions of commercial banks together with the special characteristics of relations between them and the Bank of Russia. The problem of the 'dollarization' of the Russian economy is also addressed. The second part of the report is devoted to an analysis of the legal and institutional conditions that enable the foreign exchange market to function, the way it is structured, its development stages, and problems related to the rouble exchange rate. A closer look is taken at the trend toward the creation of a single foreign exchange market in Russia. The report draws on legislative acts, government decrees, directives of the Bank of Russia, materials from the Moscow interbank foreign exchange market, periodicals, and previous studies prepared by the author.' (author's abstract)

This paper presents the first topological analysis of Danish money market flows. We analyze the structure of two networks with different types of transactions. The first network is the money market network, which is driven by banks' behavior on the interbank market, the second is the network of customer driven transactions, which is driven by banks' customers' transactions demand. We show that the structure of these networks differ. This paper adds to the new and growing literature on network topological analysis of payment systems.

This paper examines the predictability smile at the shortest end of the term structure. The existence of a predictability smile has been well documented: spreads between long rates and short rates are able to forecast subsequent movements in interest rates well, provided the horizon is three months or less or two years or more. The predictive power of the spread at the shortest maturities, however, has not been adequately investigated. This is a potential shortcoming of the existing literature as a projection of the predictability smile to the shorter maturities is not a guarantee that the expectations hypothesis holds. In Japan, a positive spread between the forward and the spot rates has insufficient predictive power for the future spot rate innovations, while a negative spread has near-perfect predictive ability. Further, we provide evidence that this result is not unique to Japan, as we find this "asymmetric predictability" to be a feature of the very short-term money markets of the U.S., U.K. and Italy.

This paper presents the first topological analysis of Danish money market flows. We analyze the structure of two networks with different types of transactions. The first network is the money market network, which is driven by banks' behavior on the interbank market, the second is the network of customer driven transactions, which is driven by banks' customers' transactions demand. We show that the structure of these networks differ. This paper adds to the new and growing literature on network topological analysis of payment systems.