The present study examines state-level banking-industry specific as well as region economic determinants of non-performing loans for all commercial banks and savings institutions across 50 US states and the District of Columbia for 1984–2013. Using both fixed effects and dynamic-GMM estimations, I find greater capitalization, liquidity risks, poor credit quality, greater cost inefficiency and b...

In the aftermath of the global financial crisis (2007-2009), policymakers in the developing countries and emerging economies have generally relied on macroprudential policies to achieve financial stability. Since the banking systemchr('39')s vulnerability plays an essential role in financial instability, and the banking systemchr('39')s stability is exposed to vulnerability, we examine macropru...

According to some, the commercial bank -an institution that conducts the twin activities of accepting deposits payable on demand and originating loans -is anachronistic and in a state of terminal decline. The evidence, however, is somewhat mixed. This paper takes a different approach to analyzing the future of banks: I examine whether there is an economic rationale for their existing in the pas...

This paper examines the corporate funding flows of Irish credit institutions over the period 2009 to end-2010. The analysis examines the daily net movement across the consolidated corporate and retail deposit books of the domestic Irish banking sector and models these flows as a function of bank specific measures of risk, sovereign influences and general macro-financial conditions. The internat...

The shadow banking system played a major role in the recent financial crisis but remains largely unregulated. We propose principles for its regulation and describe a specific proposal to implement those principles. We document how the rise of shadow banking was helped by regulatory and legal changes that gave advantages to three main institutions: money-market mutual funds (MMMFs) to capture re...

The New Basel Capital Accord (Basel II) influences how financial institutions around the world, and especially European Union institutions, determine the amount of capital to reserve. However, as the recent global crisis has shown, the revision of Basel II is needed to reflect current trends, such as increased volatility and correlation, in the world financial markets. The overall objective of ...

The assigned purpose of this paper is to explore new opportunities in liquidity management. The term is understood to mean a profitable mix of asset and liability management in the demanding new economic environment that is developing. My own preference is for the term "balance-sheet management" as a more accurate and concise way to describe the process. To establish a kind of controlling conte...

1 The decade of the 1990s witnessed dramatic changes in the competitive situation of individual banks and in the structure of the banking industry. Legislation removed barriers for bank holding companies to own banks across state lines, allowed banks to operate across extensive areas in a single branch network, and created financial holding companies that could operate banks, securities firms, ...

this paper aims to comprehend the intrinsic limitations of the market players in the financial system and how these create a situation of `missing middle` for small and medium industries (sme) financing in bangladesh. a clear dualism prevails in the manufacturing industry of this country. while the smes maintains the biggest share in establishments and employment creation, large enterprises (le...