FINANCE FOR DEVELOPMENT

1979 ◽  
Vol 19 (1) ◽  
pp. 202
Author(s):  
B.L. Hamley
Keyword(s):  
Interest Rates ◽  
Capital Investment ◽  
Raw Materials ◽  
Banking System ◽  
Capital Requirements ◽  
Balance Of Payments ◽  
Local Participation ◽  
Domestic Savings ◽  
The Relationship

Australia's development capital requirements cannot be solely financed from domestic savings but need to be supplemented by overseas capital. Thus there should be no impediments to the inflow of overseas funds and variable deposit ratio controls (currently suspended) should be abolished.Overseas capital inflow is important for the balance of payments, as imports of capital goods are likely to rise during the developmental stage of large resource projects. Exports in subsequent years will provide the funds for amortization of borrowings.However the Australian capital markets can still provide for adequate local participation and funding. In particular, Australian banks have a capacity to finance our share of large projects, but it will be argued that a less controlled banking system will improve its long term ability in this regard.As a consequence the relationship between money supply management and interest rates will be discussed.Overall the capital needs of structural change will be reviewed with the conclusion that Australia is already turning its attention to capital investment in areas of comparative advantage - resource development, particularly beneficiation of raw materials.

scholarly journals GENERAL ANALYSIS OF LONG-TERM INTEREST RATES

2020 ◽  
Vol 23 (01) ◽  
pp. 2050002
Author(s):  
FRANCESCA BIAGINI ◽  
ALESSANDRO GNOATTO ◽  
MAXIMILIAN HÄRTEL
Keyword(s):  
Interest Rates ◽  
Term Structure ◽  
Applied Mathematics ◽  
Mathematical Finance ◽  
Rational Model ◽  
No Arbitrage ◽  
Working Paper ◽  
Social Discounting ◽  
The Relationship

We introduce here the idea of a long-term swap rate, characterized as the fair rate of an overnight indexed swap (OIS) with infinitely many exchanges. Furthermore, we analyze the relationship between the long-term swap rate, the long-term yield, (F. Biagini, A. Gnoatto & M. Härtel (2018) Affine HJM Framework on [Formula: see text] and long-term yield, Applied Mathematics and Optimization 77 (3), 405–441, F. Biagini & M. Härtel (2014) Behavior of long-term yields in a lévy term structure, International Journal of Theoretical and Applied Finance 17 (3), 1–24, N. El Karoui, A. Frachot & H. Geman (1997) A note on the behavior of long zero coupon rates in a no arbitrage framework. Working Paper. Available at Researchgate: https://www.researchgate.net/publication/5066730) , and the long-term simple rate (D. C. Brody & L. P. Hughston (2016) Social discounting and the long rate of interest, Mathematical Finance 28 (1), 306–334) as long-term discounting rate. Finally, we investigate the existence of these long-term rates in two-term structure methodologies, the Flesaker–Hughston model and the linear-rational model. A numerical example illustrates how our results can be used to estimate the nonoptional component of a CoCo bond.

scholarly journals Macroprudential regulation as part of the Mexican policy toolkit

2020 ◽  
Vol 16 (1) ◽  
pp. 1-27
Author(s):  
Carlos Alberto Zarazúa Juárez
Keyword(s):  
Banking System ◽  
Banking Regulation ◽  
Theoretical Framework ◽  
Capital Requirements ◽  
Bank Capital ◽  
Dsge Model ◽  
Macroprudential Regulation ◽  
Debt Level ◽  
Bank Capital Requirements

The objective of this work is to assess the effect of implementing countercyclical macroprudential regulation in Mexico with the objective of verify whether this type of policy is welfare-improving. Using a DSGE model, two kinds of macroprudential rules are tested: countercyclical bank capital requirements and countercyclical loan-to-value ratios. Results suggest that these rules are welfare-improving and avoid the formation of credit bubbles as well as facilitate loans in the presence of macroeconomic crises. Results suggest that the use of countercyclical rules is effective in keeping the debt level according to its long-term equilibrium. This paper presents a theoretical framework to analyze banking regulation for policy purposes and is the first attempt to analyze countercyclical regulation in Mexico using a microfounded model. Results can be used to rationalize the use of macroprudential tools during the COVID‑19 pandemic given the current interventions in the Mexican banking system.

scholarly journals The relationship between remittances and economic growth in Vietnam in the period of international integration

2015 ◽  
Vol 18 (4) ◽  
pp. 104-112
Author(s):  
Tung Thanh Le
Keyword(s):  
Economic Growth ◽  
Financial Market ◽  
Foreign Currency ◽  
Positive Impact ◽  
Balance Of Payments ◽  
Exchange Market ◽  
Lag Model ◽  
Short And Long Term ◽  
The Relationship

Over nearly three decades, remittances are one of the most important sources of foreign currency in ensuring balance of payments, foreign currency reserves increase, stabilize exchange market and financial market in Vietnam. This paper uses the AutoregressiveDistributed Lag model (ARDL) to study the relationship between remittances and economic growth in Vietnam in 1990-2014. Results of Perasan’ test confirmed the existence of long-term relationship between remittances and economic growth in Vietnam. The results also provide evidence of the positive impact of remittances to economic growth both in the short and long term.

scholarly journals EVALUATING THE EFFECTIVENESS OF USING FINANCIAL RESOURCES AIMED AT INNOVATIVE INDUSTRIALIZATION

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 231-237
Author(s):  
А. Nurgaliyeva ◽  
А. Zeinullina ◽  
G. Nurbayeva ◽  
B. Serekbayeva ◽  
G. Bolsynbekova
Keyword(s):  
Structural Changes ◽  
New Technologies ◽  
Raw Materials ◽  
Banking System ◽  
Developed Countries ◽  
Financial Resources ◽  
High Tech ◽  
Innovative Model ◽  
Internal Sources

In the new global reality, the most appropriate model for long-term development of Kazakhstan is the industrial and innovative model. The need to implement industrial and innovative development is dictated by the challenges of the XXI century, the economic imperatives of globalization. Lagging indicators such as labor productivity, which today is only 39 thousand US dollars, while this indicator in the OECD countries is on average more than 2.5 times higher. The share of manufacturing in GDP in 2017 is only 12%, while this figure in developed countries such as China is about more than 35%. In order to enter the top 30 developed countries, further development of the industrial and innovative model is required. It is no accident that in his last two messages, the President focuses on the development of new technologies, new models of digitalization, the need to accelerate the introduction of more complex products, increase the technological level, and increase the share of exports. The development of Kazakhstan's economy requires qualitative and structural changes in the economy and a shift away from its dependence on raw materials, an increase in the share of manufacturing, high-tech industries and the expansion of exports of finished products. The formation of a competitive economy requires huge financial resources that will be directed to innovative industrialization on a long-term basis. The new global reality has led to a reduction in the ability to attract funding. Lack of internal sources of financing, reduction of external sources of financing of the banking system of Kazakhstan, insufficient development of the Kazakhstan stock market significantly limit the ability to meet the needs of the real sector of the economy in financial resources.

The Financial Structure of a Life Office

1953 ◽  
Vol 21 ◽  
pp. 141-218 ◽  
Author(s):  
A. T. Haynes ◽  
R. J. Kirton
Keyword(s):  
Adverse Effects ◽  
Interest Rates ◽  
Financial Structure ◽  
General Level ◽  
Life Assurance ◽  
Market Rate ◽  
Asset Distribution ◽  
The Relationship

SynopsisThe authors' purpose in this paper is to analyse the financial structure of a life office and, in particular, the relationship between the assets and liabilities of a life assurance fund. This analysis is based upon the principle that the guarantees of future capital security and of long-term interest yield involved in the contracts issued by a life office should be backed either by “matched assets” providing equivalent guarantees of capital and interest or by sufficient free reserves to cover the possible adverse effects of departure from the “matched assets” position.In Parts I and II of the paper, the principle of “matched assets” is studied in relation to three model offices representing stationary and increasing funds operating under idealised conditions. For each model office the “standard” date-distribution of assets is determined–the distribution which, so far as possible, will insulate the fund from the effects of fluctuations in the market rate of interest upon existing assets and liabilities. The profit or loss resulting from “going long” or “going short”, as compared with the standard asset distribution, is then investigated against the background of a rise or a fall in the general level of interest rates.

Indian Debt Market – Realities & Issues

2003 ◽  
Vol 28 (2) ◽  
pp. 89-124
Author(s):  
Golaka C. Nath ◽  
Y. V. Reddy
Keyword(s):  
Financial Institutions ◽  
Financial Incentives ◽  
Public Support ◽  
Banking System ◽  
State Level ◽  
Capital Requirements ◽  
Working Capital ◽  
The Government ◽  
Industry And Commerce

Traditionally Indian banking system provided the much-needed financial support to industry and commerce. Till the onset of financial sector reforms in early 1990s the Indian industry depended heavily on banks and development financial institutions for their working capital and long-term projects respectively. Capital was scarce and hence, needed rationing to areas and sectors where the government wanted and prioritized. The existence of Controller of Capital Issues was the guiding force behind investment where public support was needed. At the time of its liberation from the British in 1947 India had only the traditional commercial banks and these banks were small and owned by private companies who had other interests in business and promoted banks to channelize resources to their activities. It was no different from earlier fragmented banking system of the USA. These banks supplied shorter maturity credit for working capital needs of the industry and commerce as major infrastructure, manufacturing facilities, etc. were financed by the Government through priorities in Five Year Plans. Public sector undertakings were set up to achieve the industrial self reliance objective of the nation. The role of creating capital formation was shifted primarily to the PSUs. The banks were willing to fund basically the working capital requirements of the credit-worthy borrowers on the security of tangible assets. These PSUs were funded through budgetary support as well as support from the DFIs. Thus emerged a well-knit structure of national and state level development financial institutions (DFIs) for meeting requirements of medium and long-term finance of all range of industrial units, from the smallest to the very large ones. Government as well as Reserve Bank of India nurtured DFIs through various types of financial incentives and other supportive measures.

scholarly journals US Stock Market And Macroeconomic Factors

2015 ◽  
Vol 32 (1) ◽  
pp. 325 ◽  
Author(s):  
Francisco Jareño ◽  
Loredana Negrut
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Price Index ◽  
Consumer Price Index ◽  
Macroeconomic Factors ◽  
Significant Relationships ◽  
The Us ◽  
The Relationship ◽  
Relevant Factors

<p>This paper analyzes the relationship between the US stock market and some relevant US macroeconomic factors, such as gross domestic product, the consumer price index, the industrial production index, the unemployment rate and long-term interest rates. All the relevant factors show statistically significant relationships with the stock market except for the consumer price index, and the signs are consistent with the findings of previous literature.</p>

scholarly journals Just-In-Time: Case Studies Of Supplier Relationships Across Industries

2011 ◽  
Vol 24 (1) ◽  
Author(s):  
Dean R. Manna
Keyword(s):  
Competitive Advantage ◽  
Raw Materials ◽  
Just In Time ◽  
Font Size ◽  
Supplier Relationships ◽  
Automotive Electronic ◽  
Steel Industries ◽  
The Relationship ◽  
It Practices

<p class="MsoBlockText" style="margin: 0in 27pt 0pt 0.5in;"><span style="font-style: normal; mso-bidi-font-size: 10.0pt; mso-bidi-font-style: italic;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">Just-in-time (JIT) is a well-established philosophy that seeks to sustain a competitive advantage and result in greater overall returns through waste elimination and variability reduction.<span style="mso-spacerun: yes;">&nbsp; </span>One component of the philosophy is the relationships with suppliers.<span style="mso-spacerun: yes;">&nbsp; </span>These relationships are vital to the success of organizations regardless of the industry.<span style="mso-spacerun: yes;">&nbsp; </span>The automotive, electronic, healthcare, and steel industries engage in JIT practices in differing fashions but all seek the same goal of sustaining a competitive advantage over the competition.<span style="mso-spacerun: yes;">&nbsp; </span>The automotive and electronic industries rely heavily on information sharing.<span style="mso-spacerun: yes;">&nbsp; </span>A critical component of the healthcare industry is seeking out long-term contracts with suppliers in order to assure quality and timeliness of deliveries.<span style="mso-spacerun: yes;">&nbsp; </span>The steel industry has elements of the JIT philosophy but has been forced to vertically integrate many of its productions due to the rising costs of raw materials.<span style="mso-spacerun: yes;">&nbsp; </span>Depending on the industry a firm competes in, and the relationship it has with its suppliers determines the manner in which it practices the JIT philosophy.</span></span></span></p>

scholarly journals Globalization’s Impact on the Usages of Imported and Local Building Materials in Jordan

2019 ◽  
Vol 8 (10) ◽  
pp. 971-975
Keyword(s):  
Design Process ◽  
Building Materials ◽  
Raw Materials ◽  
Study Data ◽  
Noticeable Increase ◽  
Materials Used ◽  
The Impact ◽  
The Relationship ◽  
Local Materials

The process of choosing building materials is an essential part of the design process. Whenever architects and interior designers start to think about a project, one of the first things they consider is the materials that will be used in the production of the project. There is little research exploring the impact of globalization on the level of using imported and local building materials in Jordan. Therefore, it is necessary to examine the impact of globalization on the level of using imported and local building materials in Jordan and explore the impact of using imported building materials on the level of using local building materials in Jordan. For the purpose of this study, data gathered about the usage of imported building materials in Jordan and analyzed to observe any drops of rises of using specific building materials. Also, this data was used to understand the most common imported building materials used. This study requires a total understanding of the relationship between globalization and building materials and their impact on the economy and the usage of imported and local building materials. comprehension of this relationship will make it possible to find solutions to integrate the use of imported building materials and local materials. Globalization impact can be observed in other sectors in Jordan. The building materials market is being affected by the phenomenon of globalization. It was found that there is a noticeable increase in imported building materials or raw materials that are needed to manufacture building materials. If the attitude toward the usage of local building materials in Jordan keep decreases and relying on imported building materials in the construction section, there will be a recession in the local building materials in Jordan. Having this recession will have a greater impact on the building materials and local factories in the long term.

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