Download or read book The Effects of Regulation on Commercial Bank Valuation written by Yvette Marie Bendeck and published by . This book was released on 1988 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The effect of regulation on commercial bank valuation written by Yvette M. Bendeck and published by . This book was released on 1989 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Estimating the Costs of Financial Regulation written by Mr.Andre Santos and published by International Monetary Fund. This book was released on 2012-09-11 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.

Download or read book The Valuation Effects of the Changes in State level Interstate Multi Bank Holding Company Legislation on the U S Commercial Banks Stock Returns written by Dmitriy Kolomytsyn and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of in-state and out-of-state liberalization of interstate banking regulation on U.S. bank stock returns and risk during the period 1982-92. The empirical findings suggest that shareholders have a positive attitude towards laws with national provisions and a negative attitude to laws, allowing for only regional reciprocity. The bank portfolios produce positive abnormal returns around the dates when the interstate banking bill, allowing some form of reciprocity is first introduced by either the Bankers Association or state bankers, demonstrating a market enthusiasm about news of coming changes. The banks' exposure to market related risk is directly related to the degree of reciprocity granted by the home state. According to Gross State Product (GSP) figures and the number of failing banks in each state, the poorest states with the weakest banking sector tend to choose the most liberal form of interstate banking legislation. The results also reveal a drop in the actual number of banking institutions for the majority of states and an increase in the number of branches and publicly traded banks after the deregulation becomes effective.

Download or read book Bovernance and Bank Valuation written by Gerard Caprio and published by World Bank Publications. This book was released on 2003 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of ownership, shareholder protection laws, and supervisory/regulatory policies on bank valuations. Except in a few countries with very strong shareholder protection laws, banks are not widely held, but rather families or the State tend to control banks. We find that (i) larger cash flow rights by the controlling owner boosts valuations, (ii) stronger shareholder protection laws increase valuations, and (iii) greater cash flow rights mitigate the adverse effects of weak shareholder protection laws on bank valuations. These results are consistent with the views that expropriation of minority shareholders is important internationally, that laws can restrain this expropriation, and concentrated cash flow rights represent an important mechanism for governing banks. Finally, the evidence does not support the view that empowering official supervisory and regulatory agencies will increase the market valuation of banks"--NBER website

Download or read book The Impact of Bank Regulations Concentration and Institutions on Bank Margins written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 2003 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of bank regulations, concentration, inflation, and national institutions on bank net interest margins using data from over 1,400 banks across 72 countries while controlling for bank-specific characteristics. The data indicate that tighter regulations on bank entry and bank activities boost net interest margins. Inflation also exerts a robust, positive impact on bank margins. While concentration is positively associated with net interest margins, this relationship breaks down when controlling for regulatory impediments to competition and inflation. Furthermore, bank regulations become insignificant when controlling for national indicators of economic freedom or property rights protection, while these institutional indicators robustly explain cross-bank net interest margins. So, bank regulations cannot be viewed in isolation. They reflect broad, national approaches to private property and competition.

Download or read book The Valuation of Financial Companies written by Mario Massari and published by John Wiley & Sons. This book was released on 2014-03-31 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the main valuation approaches that can be used to value financial institutions. By sketching 1) the different business models of banks (both commercial and investment banks) and insurance companies (life, property and casualty and reinsurance); 2) the structure and peculiarities of financial institutions’ reporting and financial statements; and 3) the main features of regulatory capital frameworks for banking and insurance (ie Basel III, Solvency II), the book addresses why such elements make the valuation of financial institutions different from the valuation of non-financial companies. The book then features the valuation models that can be used to determine the value of banks and insurance companies including the Discounted Cash Flow, Dividend Discount Model, and Residual Income Model (with the appropriate estimation techniques for the cost of capital and cash flow in financial industries). The main techniques to perform the relative valuation of financial institutions are then presented: along the traditional multiples (P/E, P/BV, P/TBV, P/NAV), the multiples based on industry-specific value drivers are discussed (for example, P/Pre Provision Profit, P/Deposits, P/Premiums, P/Number of branches). Further valuation tools such as the “Value Maps” or the “Warranted Equity Method” will be explained and discussed. The closing section of the book will briefly focus on the valuation of specific financial companies/vehicles such as closed-end funds, private equity funds, leasing companies, etc.

Download or read book If Men Were Angels No Government Would be Necessary written by Henry Balani and published by . This book was released on 2017 with total page 151 pages. Available in PDF, EPUB and Kindle. Book excerpt: The banking sector plays a central role in economic development by providing financial services for a country’s growth and stability. When banks seek to maximize profits, they may engage in non-compliant behavior that negatively impacts market growth and stability. Regulatory oversight is therefore common in this sector. Regulations can lead to improved transparency and reporting, however, can also be a burden due to complexity, increasing costs of compliance with varying impacts on stock valuations of banks. While the intent is to correct behavior for non-compliance, we continue to see ongoing negative banking events post-2000, evidenced by the London Interbank Offered Rate (LIBOR) and subprime mortgage crisis, as well as the abuse of the banking system by money launderers, raising the issue that regulations are not effective in changing bank behavior. Essay 1 seeks to examine the effectiveness of regulatory signals by measuring valuation and risk impact based on enforcement actions on banks. I found that overall, bank returns are positively impacted by the announcement of enforcement actions as the fines are less harsh and not as large as expected. When testing bank-specific attributes, I found that larger banks were more negatively impacted by penalties while larger size fines had a positive effect on valuation. There was no significant impact of risk on bank returns on the day of the fine. However, banks that experienced the greatest increase in risk had the higher returns six months after the fine. When testing the impact of the fine on competitor banks, I found that there was no significant impact, suggesting no spillover effect. When testing competitor bank characteristics, I found that the fined banks with higher returns impacted competitor banks positively. Larger competitive banks were more positively impacted, while competitive banks with higher market risks reacted negatively. Similar to the fined banks, competitor banks that experienced the greatest increase in risk had higher returns six months after the fine. Overall, the results indicated that enforcement actions are not effective and do not send a strong signal to the banking industry to correct behavior. Essay 2 attempts to assess the impact of the introduction of the fourth European Union (EU) Anti-Money Laundering Directive (4AMLD) on European banks by examining whether eight milestone dates impacted stock valuation and risk. I found that valuations and risk were positively impacted when a time series analysis was conducted over the milestone event dates. An examination of bank-specific characteristics based on a cross sectional regression revealed that riskier, larger banks have higher returns as a result of the introduction of the 4AMLD. Also, banks with a higher return on assets see more positive returns. However, banks that rely more on non-traditional income streams have lower returns. In EU countries where Gross Domestic Product (GDP) per capita is higher, banks experience more positive returns than in poorer countries. Similarly, banks in less corrupt countries see more positive returns. Banks in countries with lower levels of governance, where governments are less effective and have less stable political systems and regulatory oversight, experience positive returns as a result of the introduction of the 4AMLD. The results show that with the introduction of the 4AMLD, banks gained greater clarity and guidance related to identifying and reporting on money laundering transactions, allowing banks in countries with lower levels of governance to comply effectively based on the clarity of requirements and the framework of the 4AMLD.

Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Creditor Country Regulations and Commercial Bank Lending to Developing Countries written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 1992 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Potential Effects of Fair Value Accounting on US Bank Regulatory Capital written by Benton E. Gup and published by . This book was released on 2015 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: For many years the regulatory capital of commercial banks in the United States has been based on the book value of assets and liabilities. That has changed with the implementation of Fair Value Measurements in FAS 157. Now banks and regulators must view capital from a Fair Value perspective. This could have a profound adverse affect on commercial banks when interest rates change. Banks that have shifted from “originate and hold” loans to “originate and distribute” loans suddenly may find themselves “undercapitalized,” particularly if interest rates rise. Smaller banks that rely on cumulative gap and maturity gap analysis for interest rate risk assessment would expect increases in interest rates to result in increases in net interest income and equity. More sophisticated measures, based upon discounted net cash flow calculations associated with portfolio durations, might show the opposite effect. In addition, as regulators focus more on interest rate loss distributions associated with market risk assessments under economic capital requirements, they may well increase regulatory capital requirements at the same time that banks experience a decrease in the Fair Value of their capital. As a result, banks accustomed to maintaining adequate capitalization levels may find it increasingly difficult to do so.

Download or read book Loan Portfolio Management written by and published by . This book was released on 1988 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Special Issue Commercial Banks Performance Regulation and Market Value written by Marcia M. Cornett and published by . This book was released on 2004 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Market Structure Capital Regulation and Bank Risk Taking written by Patrick Behr and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the effect of capital regulation on the risk taking behavior of commercial banks. We first theoretically show that capital regulation works differently in different market structures of banking sectors. In lowly concentrated markets, capital regulation is effective in mitigating risk taking behavior because banks' franchise values are low and banks have incentives to pursue risky strategies in order to increase their franchise values. If franchise values are high, on the other hand, the effect of capital regulation on bank risk taking is ambiguous as banks lack those incentives. We then test the model predictions on a cross-country sample including 421 commercial banks from 61 countries. We find that capital regulation is effective in mitigating risk taking only in markets with a low degree of concentration. The results remain robust after accounting for financial sector development, legal system effciency, and for other country and bank-specific characteristics. Keywords: Banks, market structure, risk shifting, franchise value, capital regulation

Download or read book Regulation and Taxation of Commercial Banks During the International Debt Crisis written by Jonathan Hay and published by World Bank Publications. This book was released on 1991 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: The debt crisis burst upon the world's attention in the summer of 1982 and has generated a great deal of discussion and debate. Most attention has been focused on schemes to solve the crisis, justifications for various forms of debt relief and reduction, and defenses of creditor positions. There has been substantial progress on a number of fronts in the debt crisis. One such example has been the substantial progress made in clarifying and refining the tax and regulatory environments for creditor banks in their own countries. The authors have organized the book with the summary material in the beginning: descriptions of the debt reduction operations and the responses of the commercial banks to them, with particular attention to the influences of the tax and regulatory environments faced in each jurisdiction. The latter part presents much more detail of each creditor country's regulations and is intended to serve as a reference. This book should be a valuable resource for further research and analysis of the debt crisis and the role played by the regulatory environment.

Download or read book Size Matters written by Charles K. Whitehead and published by . This book was released on 2015 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: The conventional story is that the Gramm-Leach-Bliley Act broke down the Glass-Steagall Act's wall separating commercial and investment banking in 1999, increasing risky business activities by commercial banks and precipitating the 2007 financial crisis. But the conventional story is only one-half complete. What it omits is the effect of change in commercial bank regulation on financial firms other than the commercial banks. After all, it was the failure of Lehman Brothers -- an investment bank, not a commercial bank -- that sparked the meltdown. This Article provides the rest of the story. The basic premise is straightforward: By 1999, the Glass-Steagall Act's original purpose -- to protect commercial banks from the capital markets -- had reversed. Instead, its main function had become protecting the capital markets from new competition by commercial banks. Once the wall came down, commercial banks gained a sizeable share of the investment banking business. To offset lost revenues, investment banks pursued riskier businesses, growing their principal investments and increasing the amounts they borrowed to finance them. In effect, they assumed the features of commercial banks -- a reliance on short-term borrowing to finance longer-term (and riskier) investments. For the investment banks, combining the two was lethal and eventually triggered the financial meltdown. The divide between two sets of regulators, those regulating commercial banks and those regulating investment banks, enabled the change. The need for greater regulatory coordination has grown with convergence in the financial markets. Although new regulation has addressed some of the concern, the gap between regulators continues today -- raising the risk of repeating mistakes from the past. Acknowledging the role of bank regulation (and de-regulation) in reshaping the capital markets is a key step in the right direction.

Download or read book The Regulation of Commercial Bank Investments Its Problems and Effects written by Andrew Norris Overby and published by . This book was released on 1940 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: