Continuous and Discontinuous Response to Smoothly Decreasing Effective Distance: An Analysis with Special Reference to ‘Overbanking’ in the 1920s

1977 ◽  
Vol 9 (4) ◽  
pp. 461-475 ◽  
Author(s):  
T R Smith

An important problem of general interest concerns the aggregate response of a system to increasing density (or decreasing effective distance between units). An analysis is made for a system in which the individual responses to changing density are smooth. The analysis is presented in terms of the ‘overbanked’ situation of the USA in the 1920s. Models are derived from micro-economic principles concerning the interaction of two banks in competition for deposits as road transportation decreases in relative cost. The conclusion drawn from analysis of the models is that aggregate deposits may increase in a smooth or in a discontinuous (jump) fashion, the jump depending on the nature of an individual banker's response function and occurring despite smooth individual responses. In the case where the system is always in equilibrium, the jump may be a catastrophe in the sense described by Thorn. The analysis indicates that improvements in road transportation may have significantly reduced the stability of the banking system to a point of catastrophic collapse (as well as, for example, overzealous chartering by the authorities). The analysis should have application to many other situations in which decreasing effective distance is an important fact.

2021 ◽  
Vol 21 (3) ◽  
pp. 45-69
Author(s):  
A. A. Perfilyev ◽  
L. P. Bufetova ◽  
Binbin Shen

The article presents a regression analysis of banking determinants and their impact on the capital structure of banks for the period 2011–2019 on an extensive statistical base of the countries of India, Russia, China, the USA and banks in the Eurozone. The study proceeds and is based on the empirical results of the analysis of the structure of bank capital, carried out for individual countries up to the specified period. These results turned out to be quite contradictory regarding the significance of different determinants of the structure of bank capital. Understanding the influence of the determinants on the stability of the banking system, the article attempts to explain the differences for the period 2011–2019, when the countries' banking systems adopted the Basel 3 capital adequacy requirements. It is shown that 1) the capital structure of banks is influenced not only by banking determinants, but also by development conditions, regulatory institutions, the state of the economy, which is evidence of the need to analyze the problems of forming the capital structure of banks by countries, types of banks, etc.; 2) banking determinants between 2011 and 2019 explain the variation in bank capital structure to a significant extent and regulatory action is relevant for all countries. From the point of view of the peculiarities of the formation of the structure of bank capital and the role of the regulator in this case, directions of modification of relevant theories of capital structure are proposed.


Methodology ◽  
2006 ◽  
Vol 2 (4) ◽  
pp. 142-148 ◽  
Author(s):  
Pere J. Ferrando

In the IRT person-fluctuation model, the individual trait levels fluctuate within a single test administration whereas the items have fixed locations. This article studies the relations between the person and item parameters of this model and two central properties of item and test scores: temporal stability and external validity. For temporal stability, formulas are derived for predicting and interpreting item response changes in a test-retest situation on the basis of the individual fluctuations. As for validity, formulas are derived for obtaining disattenuated estimates and for predicting changes in validity in groups with different levels of fluctuation. These latter formulas are related to previous research in the person-fit domain. The results obtained and the relations discussed are illustrated with an empirical example.


2015 ◽  
Vol 3 (1) ◽  
pp. 48
Author(s):  
Elona Shehu ◽  
Elona Meka

The quality of the loan portfolio in Albanian banking system is facing many obstacles during the last decade. In this paper we look at possible determinants of assets quality. During the recent financial crisis commercial banks were confronted with deteriorating asset quality that threatened not only the banking industry, but also the stability of the entire financial system. This study aims to examine the correlation between non-performing loans and the macroeconomic determinants in Albania during the last decade. NPLs are considered to be of a high importance as they represent the high risk exposure of banking system. A solid bank with healthy assets increases the market efficiency. Our approach is based on a panel data regression analysis technique from 2005-2015. Within this methodology this study finds robust evidence on the existing relationship between lending interest rate, real GDP growth and NPLs. We expect to find a negative relationship between lending interest rate and asset quality. Further we assume an inverse relationship between GDP growth and non-performing loans, suggesting that NPLs decrease if the economy is growing. Furthermore this study proposes a solution platform, which looks deeper into the possibility of creating a secondary active market for troubled loans, restructuring the banking system or implementing the Podgorica model. This research paper opens a new lieu of discussion in terms of academic debates and decision-making policies.


Author(s):  
Saidatolakma bt Mohd Yunus ◽  
Sayed Sikandar Al Haneef ◽  
Zuraidah Kamaruddin ◽  
Mek Wok Mahmud

Abstract Purification of non-halal income (NHI) is the process of deducting non-halal or tainted income deemed unacceptable by Shairaah from the total income generated in Islamic banks. It is undeniable that Shariaah non-compliance events still occur in Islamic banking system considering the fact that Islamic banks have not been able to fully comply with the requirements of Shariaah in their transactions, operations and financial activities. The realization of Shariaah non-compliance events in Islamic banks in some situations involve a financial impact which leads to NHI. All NHI identified must be purified since Islam does not allow any non-halal income to be held, kept and utilized for their own benefits. This paper will give a new insight on purification of NHI by first delineating the concept of mal haram in Islam as well as the Shariaah non-compliant events realized in the banks, with special reference to cases involving Islamic banks in Malaysia. Keywords: Islamic banking, non-halal income, purification, charity, waqf. Abstrak Penyucian pendapatan tidak halal (NHI) adalah proses memisahkan pendapatan tidak halal menurut Syari'ah daripada jumlah keseluruhan pendapatan yang dihasilkan oleh bank Islam. Tidak dapat dinafikan bahawa masih berlaku ketidakpatuhan Syariah dalam sistem perbankan Islam. Ini adalah kerana bank Islam tidak dapat mematuhi sepenuhnya keperluan Syariah dalam transaksi, operasi dan kegiatan kewangan mereka. Kewujudan perkara yang tidak mematuhi Syariah di bank Islam dapat memberi kesan kepada status kewangan yang boleh membawa kepada berlakunya pendapatan haram. Pendapatan tidak halal yang sudah dikenalpasti mesti disucikan kerana Islam tidak membenarkan apa-apa pendapatan tidak halal disimpan dan digunakan untuk faedah mereka sendiri. Kajian ini memberi pandangan baru tentang penyucian pendapatan tidak halal dengan membincangkan konsep harta haram dalam Islam serta perkara-perkara yang tidak patuh syariah yang berlaku di bank-bank Islam di Malaysia. Kata Kunci: Perbankan Islam, pendapatan tidak-halal, Penyucian, Amal, wakaf.


2021 ◽  
pp. 1-18
Author(s):  
Yu Zhang ◽  
Su-hua Wang ◽  
Shinchieh Duh

We provide a framework of analysis for Chinese ways of learning that extends beyond the individual level. The theoretical framework focuses on Confucian principles of <i>xiào</i> (孝, filial piety), <i>guăn</i> (管, to govern), and <i>dào dé guān</i> (道德觀, virtues), which leads us to argue that directive guidance as a cultural practice nourishes Chinese-heritage children’s learning as early as in infancy. To illustrate how directive guidance occurs in action for infants, we present an empirical study that examined the interaction of mother-infant dyads in Taipei, Taiwan, when they played with a challenging toy. The dyads co-enacted directive guidance more frequently than their European-American counterparts in the USA – through hand holding, intervening, and collaboration – while infants actively participate in the practice. We discuss the early development of strengths for learning that is fostered through culturally meaningful practices recurrent in parent-infant interaction.


2020 ◽  
Vol 26 (3) ◽  
pp. 223-244
Author(s):  
W. John Thrasher ◽  
Michael Mascagni

AbstractIt has been shown that when using a Monte Carlo algorithm to estimate the electrostatic free energy of a biomolecule in a solution, individual random walks can become entrapped in the geometry. We examine a proposed solution, using a sharp restart during the Walk-on-Subdomains step, in more detail. We show that the point at which this solution introduces significant bias is related to properties intrinsic to the molecule being examined. We also examine two potential methods of generating a sharp restart point and show that they both cause no significant bias in the examined molecules and increase the stability of the run times of the individual walks.


2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Patrick Hauser

AbstractThe zero risk weight privilege for European sovereign debt in the current capital adequacy requirements for credit institutions incentivises credit institutions to acquire and hold sovereign debt. However, it also poses a significant risk to the stability of the banking system and thus the financial system as a whole. It is argued that this privilege should not only be abolished due to the risk it entails but that it is also non conformant with EU primary law. Art. 124 TFEU prohibits privileged access of the EU and Member States' public sector to financial institutions except for prudential considerations. The protective purpose of Art. 124 TFEU to ensure sound budgetary policies by subjecting public borrowing to the same rules as borrowing by other market participants is thwarted by the uniform zero risk weight privilege. Further, as this privilege does not take into account the varying creditworthiness of the individual Member States it does not promote the soundness of financial institutions so as to strengthen the soundness of the financial system as whole, but rather endangers systemic stability. The zero risk weight privilege is therefore not based on prudential considerations and hence violates Art. 124 TFEU.


Mathematics ◽  
2021 ◽  
Vol 9 (14) ◽  
pp. 1597
Author(s):  
Violeta Cvetkoska ◽  
Katerina Fotova Čiković ◽  
Marija Tasheva

The aim of this paper is to evaluate the relative efficiency of commercial banks in three developing countries in Europe (North Macedonia, Serbia, and Croatia) in the period from 2015 to 2019, and to provide targets for improvement for the inefficient banks by using DEA. The variables are selected under the income-based approach. Based on the output-oriented BCC model, unusual results are obtained for a few commercial banks in each country, that is, they are BCC relative efficient, which is contrary to the real situation. In order to identify outliers that can affect the efficiency results, a super-efficiency procedure is applied so that banks with a super-efficiency score higher than 1.2 (outliers) or for which a feasible solution was not found are considered in detail and removed, and then the output-oriented BCC model is rerun. Based on the obtained results, the Macedonian commercial banking system shows the highest efficiency (91.1%), followed by the Croatian (90.9%) and the Serbian (81.9%) banking system. The estimated targets for improvement of the inefficient commercial banks could help their top bank management in better resource allocation and making fact-based and faster decisions by which they can improve the operation of the banks they lead and contribute to the stability of the financial system.


2020 ◽  
Vol 11 (3) ◽  
pp. 447-460
Author(s):  
Nan Hua

Purpose This paper aims to examine the impacts of IT capabilities on hotel competitiveness. Design/methodology/approach This study adapts and extends Hua et al. (2015) and O’Neill et al. (2008) by incorporating the specific measures of IT expenditures as proxies for the relevant IT capabilities to explore the impacts of IT capabilities on hotel competitiveness. Findings This study finds that expenditures on IT Labor, IT Systems and IT Websites exert different impacts on hotel competitiveness. In addition, IT capabilities exert both contemporary and lagged effects on hotel competitiveness. Originality/value This study is the first that uses financial data to capture direct measures of individual IT capabilities and tests the individual impacts of IT capabilities on hotel competitiveness from both contemporaneous and lagged perspectives. It uses a large same store sample of hotels in the USA from 2011 to 2017; as a result, the study results can be reasonably representative of the hotel population in the USA.


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