This paper compares the pricing of credit risk in the bond market and the fast-growing credit default swap (CDS) market. The empirical findings confirm the theoretical prediction that bond spreads and CDS spreads move together in the long run. Nevertheless, in the short run this relationship does not always hold. The deviation is largely due to different responses of the two markets to changes ...

The paper reviews the recent conduct of monetary policy and central banks’ interest rate setting behaviour in emerging market economies. Using a standard open economy reaction function, we test whether central banks in emerging economies react to changes in inflation, output gaps and the exchange rate in a consistent and predictable manner. In most emerging economies the interest rate responds ...

Statement of purpose: The purpose of these working papers is to promote the circulation of research results (Research Series) and analytical studies (Documents Series) made within the National Bank of Belgium or presented by external economists in seminars, conferences and conventions organised by the Bank. The aim is therefore to provide a platform for discussion. The opinions expressed are st...

Based on a survey and extended interviews with 78 domestic and international managers of a leading bank in India, this paper identifies some problems encountered with the utilization of Information and Communications Technology (ICT) by this enterprise in its global marketing strategy. A comparative analysis of the survey responses reveal recognizable differences among managers within and outsi...

Letter of Credit is an international payment instrument whereby the issuing bank undertakes to pay the beneficiary, against presentation of certain stipulated documents, according to the conditions of the Letter of Credit. Discounting of LC for the short-term financing of the seller, due to the independent and irrevocable undertaking of the bank to make payment, is prevalent. Beneficiary gets t...

While much research has focused on how weak domestic institutions constrain the emergence of good corporate governance practices in transition and developing economies, few studies have paid attention to the significant inter-firm variations in governance existing there. This paper focuses on firm-specific actions that aim to distinguish the firm from its peers. It reports the disparity in cred...