Transformation of banking reconsidered: how feasible is ‘de-financialisation’?

2019 ◽  
Vol 43 (4) ◽  
pp. 1053-1071 ◽  
Author(s):  
Robert Sweeney
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Asset Management ◽  
Banking System ◽  
Investment Banking ◽  
Financial Service ◽  
The Other ◽  
The One ◽  
Neoliberal Restructuring ◽  
Derivatives Markets

AbstractA defining feature of financialisation has been the transformation of banking, especially the expansion of investment banking. This article argues that the financialisation literature has, to date, failed to adequately explain this transformation. Neither disintermediation processes on the one hand, nor liberalisation of financial service activities on the other hand can explain the increase in scale and scope of the sector. The growth in investment banking activities should instead be seen in terms of the overall expansion of financial markets. In particular, demographic pressures and neoliberal restructuring have led to the growth of capital markets and modern asset management. The rise of capital markets and asset management, and the associated growth of money and derivatives markets have, in turn, put pressures on the banking system for expanded investment services, which it has met. Understanding financialisation as a structural change implies limits on how much economies can be ‘de-financialised’.

Critical Value-Based Power Options Pricing Problems in Uncertain Financial Markets

2021 ◽  
pp. 2150002
Author(s):  
Guimin Yang ◽  
Yuanguo Zhu
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Numerical Experiments ◽  
Critical Value ◽  
The Other ◽  
Options Pricing ◽  
Underlying Asset ◽  
Pricing Problems ◽  
Fractional Differential ◽  
The One

Compared with investing an ordinary options, investing the power options may possibly yield greater returns. On the one hand, the power option is the best choice for those who want to maximize the leverage of the underlying market movements. On the other hand, power options can also prevent the financial market changes caused by the sharp fluctuations of the underlying assets. In this paper, we investigate the power option pricing problem in which the price of the underlying asset follows the Ornstein–Uhlenbeck type of model involving an uncertain fractional differential equation. Based on critical value criterion, the pricing formulas of European power options are derived. Finally, some numerical experiments are performed to illustrate the results.

Financial markets as commensurating machines

2019 ◽  
Vol 58 (4) ◽  
pp. 539-565
Author(s):  
Barbara Kuchler
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Flows ◽  
Financial System ◽  
Financial Assets ◽  
Financial Instruments ◽  
Black Scholes ◽  
Derivatives Markets

Ever since the crisis of 2008, the dynamism and self-referentiality of financial markets have puzzled observers. This article argues that this dynamism is the product of a long process of commensuration, by which ever more heterogeneous financial assets and financial instruments have come to be compared with, substituted for, and valuated relatively to one another, and have thereby been condensed into a highly interconnected financial system. This trajectory can be found both in the long-term historical emergence of financial markets from ancient origins and in the more recent transformations of the financial system since the 1970s, including (i) the rise of derivatives markets, and (ii) the rise of capital markets as against bank-intermediated capital flows. The rise of derivatives markets was triggered by the commensuration of basic securities (such as stock, bond) and derivatives (such as options, futures), established by the Black-Scholes-Merton theory of option pricing. The rise of capital markets was rooted in the commensuration – and hence, competition and substitution – of bank products (such as loans, deposits) and non-bank products (capital market securities).

scholarly journals Disproportional Ownership Devices: Reviewing the Last 25 Years of Research

2016 ◽  
Vol 11 (4) ◽  
pp. 22 ◽  
Author(s):  
Sara Saggese ◽  
Fabrizia Sarto
Keyword(s):  
Financial Markets ◽  
Policy Making ◽  
Civil Law ◽  
The Other ◽  
Main Research ◽  
The One ◽  
Lock In ◽  
Practical Implications ◽  
Scholarly Attention ◽  
Over Time

<p>The paper aims to systematize the literature on disproportional ownership devices by reviewing and classifying 148 articles published in international academic journals over the last 25 years. The findings show that the scholarly attention on disproportional ownership devices has grown over time. Most papers adopt the agency framework and examine the mechanisms for leveraging voting power and to lock-in control, especially in civil law countries. Corporate governance journals prevail as leading outlets, despite the lack of publications specialized on the topic. Finally, the literature systematization highlights a research taxonomy based on outcomes and drivers of disproportional ownership devices. The article has both theoretical and practical implications. First, it develops a literature framework that systematically outlines the main research streams on the topic and identifies under-explored issues so as to guide future scholarly efforts. Second, it highlights the implications of disproportional ownership devices for company outcomes and reporting. Thereby, on the one hand, it supports managers in selecting the appropriate combination of these mechanisms so as to attract and retain investors. On the other hand, it emphasizes the importance of proper policy making interventions to improve transparency, openness and competitiveness of financial markets.</p>

scholarly journals Neoklassischer Marxismus?

2015 ◽  
Vol 45 (179) ◽  
Author(s):  
Michael Wendl
Keyword(s):  
Political Economy ◽  
Economic Development ◽  
Financial Markets ◽  
Central Banks ◽  
The Other ◽  
Real Economy ◽  
Money Creation ◽  
The One ◽  
Influential Book ◽  
Value Of Money

A couple of years after the outbreak of the financial crisis, a discussion about money creation from a political economy perspective has finally been initiated again, analyzing the interaction between commercial and central banks. Neo-Marxist approaches, though, are to a large extent unaffected by this discussion – which is based on Joseph Schumpeter’s Theory of Economic Development (1911) – or even completely reject the idea of a money-creation out of nothing. Two Neo-Marxist articles are exemplary of this deficit of monetary theories. On the one hand, the influential book Political Economy of Financial Markets (1999) by Jörg Huffschmid, which has constituted the paradigm of capitalism being driven by financial markets. On the other hand Political Economy of Money (2012) by Stephan Krüger, which assumes that the value of money is still based on the respective production of gold. Consequently, these approaches unintended trigger an adherence to the Neoclassical dichotomy of „real economy“ and „monetary sphere“, albeit with different rationales.

scholarly journals Reading Keynes’s policy papers through the prism of his Treatise on Probability: information, expectations and revision of probabilities in economic policy

2021 ◽  
Author(s):  
Sylvie Rivot
Keyword(s):  
Decision Making ◽  
Probability Theory ◽  
Economic Policy ◽  
Financial Markets ◽  
The Self ◽  
The Other ◽  
Policy Recommendations ◽  
The Great Depression ◽  
The One ◽  
Probability Information

When scholars investigate the legacy of Keynes’s Treatise on Probability (1921) for the development of Keynes’s thinking, the attention usually focuses on the connections between Keynes’s probability theory, his conception of decision-making under uncertainty and the theory of the functioning of the macroeconomic system that derives from it - through the marginal efficiency of capital, the preference for liquidity and the self-referential functioning of financial markets. By contrast, the paper aims to investigate the connections between Keynes’s probability theory on the one hand, and his economic policy recommendations on the other. It concentrates on the policy recommendations defended by Keynes during the Great Depression but also after the General Theory. Keynes’s economic policy can be understood as a framework for decision-making in situations of uncertainty: fiscal policy aims to induce private agents to change their “rational” probability statements, while monetary policy aims to allow more weight to these statements.

The Art Market

2017 ◽  
Author(s):  
Mark Pieth
Keyword(s):  
Growth Rate ◽  
Money Laundering ◽  
Banking System ◽  
Art Market ◽  
The Other ◽  
Islamic State ◽  
Regulatory Pressure ◽  
War Effort ◽  
The One ◽  
Heads Of State

This chapter covers the worldwide art markets that as a group have experienced a dramatic surge in corruption over the last decade. The reasons given for this extraordinary growth rate are on the one hand the low return on classic investments or investment tools since the crisis of 2008 and on the other hand the regulatory pressure on the banking system. Abuses are rather diversified with problematic transactions including trading in looted objects (be it looted by the Nazis or items from illegal digging in Tuscani, or more recently even the systemic exploitation of antiquities by the “Islamic State” to fund their war effort), professional counterfeiting and fake or incorrect certificates, or the sale of art for the purpose of money laundering. Of course, here all sorts of graft and illicit enrichment (e.g. by heads of state, ministers, or other officials), come into play.

Ausgestaltung und Enforcement in der Finanzberichterstattung

2020 ◽  
Author(s):  
Marc Berninger
Keyword(s):  
Information Processing ◽  
Capital Markets ◽  
Capital Market ◽  
Considerable Increase ◽  
Investment Decision ◽  
Accounting Standards ◽  
Capital Allocation ◽  
The Other ◽  
System P ◽  
The One

Steadily increasing publication requirements during recent decades have not only led to a considerable increase in associated costs for the companies in question, but it is also questionable which information is actually required for a substantiated investment decision—and thus for efficient capital allocation in capital markets. In line with these developments, this study examines the three current regulatory scenarios: the reduction of the requirements for quarterly reporting, the obligation to publish directors’ dealings and the enforcement of accounting standards within the two-tier external enforcement system and their interaction in terms of information provided by listed companies on the one hand and information processing by investors on the other in the capital market. The results show ways to simplify existing capital market regulations without jeopardising investor protection.

scholarly journals Contemporary art and financialization: Two approaches

2016 ◽  
Vol 2 (2) ◽  
pp. 127-37 ◽  
Author(s):  
Victoria Ivanova
Keyword(s):  
Financial Markets ◽  
Contemporary Art ◽  
Cultural Dimensions ◽  
The Other ◽  
Hostile Environment ◽  
Cultural Perspective ◽  
Holistic Understanding ◽  
Derivative Instruments ◽  
The One ◽  
The Relationship

This essay identifies two approaches to theorizing the relationship between financialization and contemporary art. The first departs from an analysis of how market logics in non-financial spheres are being transformed to facilitate financial circulation; the other considers valuation practices in financial markets (and those related to derivative instruments in particular) from a socio-cultural perspective. According to the first approach, the contemporary art market is in theory a hostile environment for financialization, although new practices are emerging that are increasing its integration with the financial sphere. The second approach identifies socio- cultural similarities between the logics by which value is extracted, amplified, and distributed through derivative instruments and contemporary art. The two approaches present a discrepancy: on the one hand, contemporary art functions as an impediment to outright financialization because of market opacity; on the other, contemporary art represents a socio- cultural analog to derivative instruments. The essay concludes by setting out the terms for a more holistic understanding of contemporary art’s relationship to financialization, which would enable an integration of its economic and socio-cultural dimensions.

scholarly journals Analysis of interaction of agricultural holding participants

2020 ◽  
Vol 19 (1) ◽  
pp. 135-145
Author(s):  
Daria Zabaznova
Keyword(s):  
Information Technology ◽  
Financial Service ◽  
The Other ◽  
Financial Resources ◽  
Flow Management ◽  
Complete Control ◽  
Agricultural Enterprises ◽  
Cash Flow Management ◽  
Long Period ◽  
The One

The relationships between subsidiary agricultural enterprises within the holding have their own characteristics, due, on the one hand, to the legal independence of agricultural enterprises, and, on the other, to their economic dependence. The goal of structuring relationships in an agricultural holding is to create a single financial and economic system that ensures competitiveness, profitability and market stability for a long period. In the relations of holding organizations, an important role is given to centralized cash flow management, consolidation, investment, budgeting based on information technology. Centralization of the financial service allows for complete control, lower management costs, better and more appropriate to accumulate and distribute financial resources.

scholarly journals Asset Management Companies and the Place in the Turkish Economy

2019 ◽  
Author(s):  
Ayşe Özge Artekin ◽  
Haldun Soydal
Keyword(s):  
Financial Markets ◽  
Economic Crisis ◽  
Asset Management ◽  
Banking System ◽  
Negative Effects ◽  
Flow Of Funds ◽  
Structural Deterioration ◽  
Turkish Economy ◽  
The World ◽  
Positive Effect

With the crisis that started in our country in 2000s, those who owe the bank could not complete their payment obligations, the collection process was damaged and thus the number of problematic loans increased. However, as a result of structural deterioration, bank mergers were experienced, banks' capital was strengthened and many of them were seized by TMSF. This situation has created a distrust of the banking system. In order to change the negative perception, problematic loans which prevent the flow of funds should be solved. At this stage, Asset Management Company has become a need and started to operate in the financial markets of our country. The Asset Management Companies were established in the 1930s to solve the financial problems arising from the global economic crisis. Nowadays, these companies are formed according to the needs and shortcomings and become legal institutions which are effective in eliminating the negative effects of problem loans on banks. In this study; the effects of problem loans, solutions, the process of emergence of companies in the world and in our country, its importance, aims, types, positive and negative aspects of banks and credit customers are examined. As a method of the study, domestic and foreign literature has been utilized and as a result of the study, it has been concluded that this problem has a positive effect on credit customers and banking system upon the transfer of problem loans to asset management companies.

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