This article presents a simple environment giving rise to banks that create and lend out money. We define money to be any object that circulates widely as a means of payment. In our model, this object takes the form of a fully secured and redeemable bearer bond. This monetary instrument is issued by an agent that can credibly commit to monitoring a pool of real investments; that is, this capita...

This study examines the determinants of financial intermediation costs banks in ten Emerging Economies (EEs) period 2000–2018 using panel data 1335 banks. Empirically, this applies single-stage dealership model and its extensions by introducing new bank country-level variables. We find robust evidence that investment government securities market openness positively affect while trilemma index n...

In order to affirm the competitive position and development of banking system in integration period respond changes world economy, establishment joint-stock commercial banks into financial groups (investment business activities on all three financial, securities insurance markets) will create sustainable for both economy. However, with as mainstay requires a clear legal framework foundation pro...

The Nepalese stock market, specifically concentrating on three commercial banks listed the Nepal Stock Exchange Limited. paper aims to analyze risk and return associated with investing in common stocks focusing banks. Secondary data is gathered from various sources, including NEPSE website, prior studies, publications by NRB (Nepal Rastra Bank), banks' websites, SEBON (Securities Board of Nepal...

A model of security design based on the principle of information aggregation and alignment is used to show that (i) ̄rms needing to ̄nance their operations should issue di®erent securities to di®erent groups of investors in order to aggregate their disparate information and (ii) each security should be highly correlated (closely aligned) with the private information signal of the investor to wh...

In this paper, we explore the linkage between bank opacity and charter value. We find that contaminates value therefore reduces ability of to restrain risk-taking in banking. As assets become more complex opaque with increased use derivative like mortgage backed securities, asset collateralised debt obligations, etc., it becomes difficult gauge true banks risk activities.

We examine a policy in which owners of banks provide funds the form surety bond addition to equity capital. This would require regulator with that could be invested marketable securities. Investors bank receive income from as long is business. The capital value used by regulators pay off banks’ liabilities case failure. After paying depositors, investors remaining funds, if any. Analytically, t...