Download or read book Three essays on Credit Unions Capital Liquidity and Lending written by Niamien Eric Ekpinda and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Résumé en anglais

Download or read book Three Essays on Credit Unions written by Christine Naaman and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is comprised of three essays on issues related to the financial reporting practices of credit unions in the United States. The first essay relies on an agency theory perspective to examine the extent of earnings management in U.S. credit unions through loan loss provisions (LLP). The context of member-owned credit unions provides a different set of financial reporting incentives than the one typically found in shareholder-owned banks, thus providing an opportunity to extend earnings management research. The sample comprises U.S. credit unions above $50 million in total assets, between 2003 and 2016. Results show that credit union managers engage in income smoothing through the discretionary use of LLP to avoid earnings declines. Results also show that larger and better-capitalized credit unions engage in more earnings management, as do credit unions with a federal charter. Moreover, credit unions are driven by the incentive of merging to engage in earnings management. The findings are economically significant, and thus, relevant to policymakers contemplating new regulations since these managerial activities may place the cooperative principle at risk. The second essay examines how competition affects risk-taking of a matched sample (by size and county) of banks and credit unions, and whether it affects differently credit unions and banks. Several measures of risk-taking are used in the study. The period of the study is from 2010 till 2017. First, univariate analyses are conducted to compare the risk-taking of the two types of institutions. We find that the means of the risk-taking measures do not differ significantly between banks and credit unions. Second, examining the difference in the risk-taking of credit unions and banks in a multivariate analysis, we find that banks' managers engage in riskier activities. Third, we examine the effect of competition on the risk-taking. We find that increased competition induces managers of credit unions and banks to take more risk; this finding supports the competition-fragility hypothesis. We also find that credit unions' managers take more risk than banks' managers in the presence of competition. Finally, by including the quadratic term of competition, we find that there is a non-linear relationship between competition and risk-taking. This study has public policy implications: the American Banking Association argues that public policy toward credit unions and banks should be similar due to their similarities; whereas, credit unions express their difference to protect their privilege of tax exemption. The third essay attempts to identify certain traits of the target credit unions in comparison to acquiring and non-merging credit unions. The analysis is performed both qualitatively and quantitatively. First, the paper presents a clinical analysis of three cases of mergers of credit unions. Each case is analyzed from the perspective of agency theory to determine the reason for merger. The three cases illustrate how the executives and directors are seeking their own utilities at the expense of the members. Second, we aim to identify certain characteristics of target credit unions empirically by comparing a sample of acquired credit unions to a matched sample of non-merging credit unions and the acquiring credit unions. The sample comprises U.S. credit unions above $10 million in total assets that merged to expand their services between 2011 and 2017. We identified a list of ratios that are used by the NCUA for credit union assessment, a univariate analysis of variance tests for differences between the means of these ratios among the three groups (targets, acquiring, and non-merging credit unions); the means of the ratios of the three groups are statistically different. Then, factor analysis is performed to classify the major factors that explain the majority of variance. Growth, capital adequacy, asset quality, and earnings are the major ratios that differentiate between the target, acquiring, and non-merging credit unions. The paper has public policy implications; it provides the NCUA with the necessary information for the amendment of the voluntary mergers proposed rule on May 25, 2017. Keywords: Earnings management; Credit unions; Loan loss provision; Agency theory; Banks; Risk-taking; Competition; Lerner Index; Mergers; Target; Voluntary merger; Acquisition; Agency hypothesis.

Download or read book Essays on Financial Institutions Capital and Liquidity Regulation written by Hélyoth Hessou and published by . This book was released on 2020 with total page 205 pages. Available in PDF, EPUB and Kindle. Book excerpt: The review of the articles included in this thesis can be summarized as follows: The first essay examines the behavior of regulatory capital adjustment in a multiple capital requirement regime such as the Basel III one. This essay is motivated by the fact that the existing bank capital adjustment models are designed to address adjustment towards a single capital ratio. Our findings are numerous. Firstly, it appears that the joint regulation of two capital ratios (adjusted and unadjusted for risk) is assimilated to the regulation of a single capital ratio (not adjusted to risk), whose limit is assimilated to the value of a call option written on (regulatory) asset risk ratio. An analysis of both the Canadian and US experiences in the joint capital regulation provides further justification for the relative resilience of Canadian banks (in comparison with their US counterparts) during the last subprime crisis of late 2007. The second essay is devoted to the analysis of the counter-cyclical buffer standard introduced under Basel III. This standard aims to smooth undesirable cyclical fluctuations in bank capital as this negatively affect the granting of credit by banks, especially in times of crisis. This work aims to quantify the required level of cushion by taking into account the cyclical components of bank capital. The implications of the new liquidity standards are also discussed. The third essay analyzes the appropriateness of the new counter-cyclical capital standards of Basel III to Canadian credit unions regulation. Based on data extracted from Canadian financial cooperatives balance sheets over the period between 1996 and 2014, this essay shows that unlike banking institutions, credit union capital is already countercyclical, and therefore the introduction of the countercyclical buffer would not alter their intermediation activities. However, the analysis also reveals that the capital cushion of under-capitalized credit unions is pro-cyclical, and therefore these credit unions need close monitoring from regulators regarding their adjustment behaviors following countercyclical measures’ adoption. v The fourth essay is an extension of the previous one in that it analyzes the effect of regulatory capital on lending by Canadian credit unions. Our findings suggest that the growth in the Canadian credit unions loan portfolio is positively associated with the level of capitalization. In contrast, we uncover a negative relation between change in credit union capital and the growth of their lending portfolio. This finding suggests that credit unions should be encouraged to hold adequate levels of capital. This can be achieved through the implementation of conservative and countercyclical capital requirements as advocated for banks.

Download or read book Three Essays on the Economics of U S Credit Unions written by A. F. M. Ataur Rahman and published by . This book was released on 2003 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Liquidity and Risk Management written by Mingxin Li and published by . This book was released on 2017 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three independent essays on stock liquidity, corporate cash holdings, and financial institution earnings risk. The first study examines the relationship between stock liquidity and the difference in domestic and foreign market prices for a sample of 650 international firms cross-listed on a U.S. stock exchange. The study exploits the 2001 change to decimalization pricing and the 2003 U.S. dividend tax cut as quasi-natural experiments and finds that ADR liquidity decreases the absolute value of the ADR premium. The paper documents a positive relationship between liquidity and price discovery as well as a liquidity effect on the price convergence between the ADRs and their underlying shares. The second study focuses on corporate cash holdings as a mechanism of risk management. The paper documents a diversification effect on cash for a large sample of international firms, and examines the impact of agency costs, financial constraints and product market competition on the relationship between diversification and cash holdings. The results show that weak product market competition can weaken or even reverse the negative diversification effect on cash holdings. Weak country-level shareholder protection helps explain the weak diversification effect to a smaller degree, whereas financial constraints strengthen the diversification effect. Further, the competition effect is stronger for innovative, high R&D intensity firms and for firms with high uncertainty of sales and productivity growth. The third study analyzes the impact of deposit insurance design on the earnings uncertainty of financial cooperatives. The 2008 amendment to the Financial Institutions Act in the province of British Columbia resulted in an economically and statistically significant decrease in the credit unions' earnings uncertainties. The policy spurred deposit growth, but instead of an increase in lending, credit unions grew their capital-to-asset ratio. The results support the hypothesis that an unlimited insurance coverage boosts depositors' confidence and increases the flow of funds to the insured cooperatives. The paper does not find support for the moral hazard hypothesis where full deposit insurance increases risk-taking and creates liquidity risk by attracting wholesale funds.

Download or read book The Chicago Plan Revisited written by Mr.Jaromir Benes and published by International Monetary Fund. This book was released on 2012-08-01 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.

Download or read book The Federal Reserve System Purposes and Functions written by Board of Governors of the Federal Reserve System and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Download or read book Essays on Capital Structure and Trade Financing written by Klaus Hammes and published by Department of Economics School of Economics and Commercial Law Go. This book was released on 2003 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Financial Crisis Inquiry Report written by Financial Crisis Inquiry Commission and published by Cosimo, Inc.. This book was released on 2011-05-01 with total page 692 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Download or read book NCUA Rules and Regulations written by United States. National Credit Union Administration and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book American Doctoral Dissertations written by and published by . This book was released on 2002 with total page 776 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

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 The Formation of Financial Centers written by Charles Poor Kindleberger and published by . This book was released on 1974 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Innovation Regulation and Crises in History written by Harold James and published by Routledge. This book was released on 2015-10-06 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: With contributions from world-renowned figures such as Niall Ferguson and Adair Turner, this volume investigates how financial institutions and markets have undergone or reacted to past pressures, and the regulatory responses that emerged as a result.

Download or read book The Theory and Practice of Financial Stability written by Andrew Crockett and published by . This book was released on 1997 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book World Development Indicators 2009 written by World Bank and published by World Bank Publications. This book was released on 2009-01-01 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt: Looking for accurate, up-to-date data on development issues? 'World Development Indicators' is the World Bank's premier annual compilation of data about development. This indispensable statistical reference allows you to consult over 900 indicators for some 150 economies and 14 country groups in more than 80 tables. It provides a current overview of the most recent data available as well as important regional data and income group analysis in six thematic sections: World View, People, Environment, Economy, States and Markets, and Global Links. World Development Indicators 2009 presents the most current and accurate development data on both a national level and aggregated globally. It allows you to monitor the progress made toward meeting the Millennium Development Goals endorsed by the United Nations and its member countries, the World Bank, and a host of partner organizations. These goals, which focus on development and the elimination of poverty, serve as the agenda for international development efforts.