Calibrating the Financial System

2020 ◽  
pp. 13-36
Author(s):  
Terri Friedline
Keyword(s):  
Credit Scoring ◽  
Financial System ◽  
Equal Access ◽  
Bank Account ◽  
Racial Capitalism ◽  
Financial Products ◽  
System P ◽  
Policies And Practices

This chapter explores how the financial system was created and developed to recognize whiteness as a first credential of banking. Based on the theory of racial capitalism, this chapter reviews the origins of modern-day banks, redlining, and credit scoring to explain how the financial system confers advantages to whites. The financial system’s calibrations to whiteness have made it unable to render equal access to financial products and services. Whites have disproportionately higher bank account ownership rates, savings amounts, and accumulated wealth compared to their Black and Brown counterparts. Reports that decontextualize these differences from racial capitalism ignore the racist policies and practices responsible for these present-day renderings.

Islamic Banking and Finance in Theory and Practice

2005 ◽  
Vol 22 (2) ◽  
pp. 69-86 ◽  
Author(s):  
Abdus Samad ◽  
Norman D. Gardner ◽  
Bradley J. Cook
Keyword(s):  
Financial System ◽  
Primary Objective ◽  
Theory And Practice ◽  
Islamic Banking ◽  
Relative Importance ◽  
Islamic Banks ◽  
Equity Financing ◽  
Banking And Finance ◽  
Financial Products ◽  
Islamic Bank

This paper’s primary objective is to identify the relative importance of various Islamic financial products, in theory and in practice, by examining the financing records of the Bank Islam Malaysia (Berhad) and the Bahrain Islamic Bank. Currently, seven available Islamic financing products are considered viable alternatives to interest-based conventional contracts: mudarabah (trust financing), musharakah (equity financing), ijarah (lease financing), murabahah (trade financing), qard al-hassan (welfare loan), bay` bi al-thaman al-ajil (deferred payment financing), and istisna` (progressive payments). Among these financial products, mudarabah and musharakah are the most distinct. Their unique characteristics (at least in theory) make Islamic banks and Islamic financing viable alternatives to the conventional interest-based financial system. The question before us is to determine the extent of mudarabah and musharakah in Islamic financing in practice. The data are as follows: the average mudarabah is 5% of total financing, and the average musharakah is less than 3%. The combined average of mudarabah and musharakah for the two Islamic banks is less than 4% of the total finance and advances. The average qard al- hassan is about 4%, while istisna` does not yet exist in practice. Murabahah is the most popular and dominates all other modes of Islamic financing. The average use of murabahah is over 54%. When the bay` bi al-thaman al-ajil is added to the murabahah, the percentage of total financing is shown to be 2.68%. This paper also explores some possible reasons why these two Islamic banks appear to prefer murabahah to mudarabah and musharakah.

Information in the Financial System

2018 ◽  
Author(s):  
Alberto Giovannini
Keyword(s):  
Information Technology ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Asset Management ◽  
Financial System ◽  
Financial Innovation ◽  
Primary Users ◽  
System P ◽  
Information And Communication

The financial system is one of the primary users of information technology, which in recent decades has experienced phenomenal progress. This chapter discusses how information and communication technology has changed the financial system, and what policy challenges arise from the interactions of information technology progress and financial innovation. I focus on the asset management and banking industries. In the case of asset management, progress in information technology has partially transformed the industry, and potentially made it more efficient. In the case of banking, the industry has been changed profoundly, has grown significantly, but at the same time it has become more fragile. The chapter discusses the implications of these phenomena for policymaking.

A bank-account-information-based credit scoring method with Bayesian hierarchical modeling

2021 ◽  
pp. 2150036
Author(s):  
Suguru Yamanaka ◽  
Rei Yamamoto
Keyword(s):  
Hierarchical Modeling ◽  
Credit Scoring ◽  
Information Criterion ◽  
Bayesian Hierarchical Modeling ◽  
Scoring Method ◽  
Bank Account ◽  
Bayesian Hierarchical ◽  
Account Information ◽  
Activity Information ◽  
Financial Technology

Recent interest in financial technology (fintech) lending business has caused increasing challenges of credit scoring models using bank account activity information. Our work aims to develop a new credit scoring method based on bank account activity information. This method incorporates borrower firms’ segment-level heterogeneity, such as a segment of sales size and firm age. We employ Bayesian hierarchical modeling, which mitigates data sparsity issue due to data segmentation. We describe our modeling procedures, including data handling and variable selection. Empirical results show that our model outperforms the traditional logistic model for credit scoring in information criterion. Our model realizes advanced credit scoring based on bank account activity information in fintech lending businesses, taking segment-specific features into credit risk assessment.

8. The Evolution of the International Monetary and Financial System

2020 ◽  
pp. 199-221
Author(s):  
Eric Helleiner ◽  
Melsen Babe
Keyword(s):  
Exchange Rate Regime ◽  
Financial System ◽  
Second World War ◽  
Late Nineteenth Century ◽  
World War ◽  
Political Consequences ◽  
Bretton Woods ◽  
System P ◽  
Late Nineteenth ◽  
Second World

This chapter explores the international monetary and financial system, which plays a central role in the global political economy (GPE). Since the late nineteenth century, the nature of this system has undergone several pivotal transformations in response to changing political and economic conditions at both domestic and international levels. The first was the collapse of the integrated pre-1914 international monetary and financial regime during the interwar years. The second transformation took place after the Second World War, when the Bretton Woods order was put in place. Since the early 1970s, various features of the Bretton Woods order have unravelled with the globalization of finance, the collapse of the gold exchange standard, and the breakdown of the adjustable peg exchange rate regime. These changes have important political consequences for the key issue of who gets what, when, and how in the GPE.

1. Banks in the Financial System

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Financial Stability ◽  
Regulatory Networks ◽  
Financial System ◽  
Capital Allocation ◽  
Bank Supervision ◽  
System P ◽  
The Us ◽  
Regulatory Coordination ◽  
Definition Of

This chapter explains the economic functions and organizational structure of contemporary banking. It first discusses the role of banks in the economy, offering a brief account of the role of the financial system in capital allocation and risk management as well as key bank functions in this respect. It then details the rise and fall of the multifunctional bank in the era of globalization, and the different aspects of the too-big-to-fail bank problem and its possible causes. It explains the international nature of bank regulation and the standard-setting and regulatory coordination provided by key transnational regulatory networks such as the Basel committee on Bank Supervision and the Financial Stability Board; discusses the legal definition of the term ‘bank’ in the US and of ‘credit institution’ under EU legislation; advances a new understanding of what the term ‘bank’ means in the post-2008 era.

scholarly journals Financial Inclusion, Awareness, and Understanding of Financial Products among People Selected Gewogs (Blocks) of Bhutan

2019 ◽  
Vol 8 (11S2) ◽  
pp. 485-494
Keyword(s):  
Financial Services ◽  
Financial System ◽  
Secondary Data ◽  
Primary Objective ◽  
Financial Inclusion ◽  
Primary Data ◽  
Journal Articles ◽  
Financial Products ◽  
The People ◽  
Survey Finding

The financial products that are being offered by the banks in the contemporary era are significant to enhance the primary objective of the banks that is, ‘Financial Inclusion’ (FI). However, due to umpteen reasons, the banks in many countries have failed streamlining the poor and the majority of the rural folk. Bhutan is not an exception as it is in a landlocked country. The Survey finding (2013) depicted a smaller share of Bhutanese involvement in the formal financial system (48%) whereas larger percentage of them involved in informal financial system. Further, the present Governor of Royal Monetary Authority (The central bank of the country), Dasho Penjor in his discussion on the review of His Majesty’s address on 109th National day Celebration in Trongsa stated that the majority of the rural folks are unable to avail banking services extended by the formal institutions. Besides, financial services can be availed by mass only when banks and other financial institutions run some awareness programmes. There are a few literature on FI in Bhutan in general; however literature on the awareness and understanding of financial products of the people are minimal in the country. The present study, therefore, investigates the scenario of FI along with awareness and understanding of financial products of commercial banks among Bhutanese in four Gewogs (Blocks) of the country that is, Bongo, Chapcha, Darla and Samphelling. The structured questionnaire was designed and primary data from 378 respondents were collected. Further, various articles and papers published in survey findings, magazines, and journal articles are used as secondary data sources of the study. The collected data have been tabulated, analysed, and interpreted with the help of Descriptive statistics, Independent t-test and Analyses of Variance (ANOVA).

scholarly journals Financial Inclusion of Deprived Groups – A Study Conducted in Four Vulnerable Areas of Ernakulam District in Kerala

2017 ◽  
Vol 7 (2) ◽  
pp. 131
Author(s):  
Krishnakumar U R
Keyword(s):  
Research Work ◽  
Financial System ◽  
Main Tool ◽  
Financial Inclusion ◽  
Interview Schedule ◽  
Financial Products ◽  
Underdeveloped Areas ◽  
Kerala State

<em>Banking is an imperative force of Financial Inclusion.  Financial Inclusion is coined as a process that ensures the ease of admittance, availability and usage of the formal financial system for all members of an economy including the deprived groups living in our society.  This study mainly aims to assess the level of financial inclusion among the deprived groups who are living in Ernakulam Dt. Of Kerala State.  This research work also intends to know the consciousness of the respondents as regards the financial inclusion, and financial products and  services offered by banks.  This study implemented in four rural underdeveloped areas in Ernakulam District ie Kodanad, Kuttampuzha, Panagad and Chellanam. All these are highly backward areas in Ernakulam District. The respondents are selected at random from these areas.  Forty respondents are selected from each group at a total of 160 respondents.  The main tool used for collecting data is interview schedule.  The finishing part of the study reveals that the financial inclusion practices of this selected areas are acceptable.</em>

Conclusions: From Here and There

2018 ◽  
Author(s):  
Alexandra Délano Alonso
Keyword(s):  
Multiple Scales ◽  
Shared Responsibility ◽  
Equal Access ◽  
Social Rights ◽  
Nonstate Actors ◽  
Alternative Pathways ◽  
Global Migration ◽  
Policies And Practices

This chapter discusses diaspora policies focused on integration and protection of social rights from the perspective of questions around the boundaries of citizenship and global migration governance. The evidence engages a larger debate about solidarity across borders focused on equal access to rights from a perspective of shared responsibility and accountability. It considers the examples of extension of rights and the expansion of concepts such as integration and citizenship, examined throughout the book as innovative practices and discourses around migration that are being articulated, challenged, and imagined through interactions at multiple scales and across borders between migrants, states, and nonstate actors. It juxtaposes these policies and practices against anti-immigrant discourse and xenophobia that have developed in parallel and offers alternative pathways to respond to it, particularly in the context of US President Donald Trump’s administration.

25. Criminal justice policies and practices

2021 ◽  
pp. 743-767
Author(s):  
Steve Case ◽  
Phil Johnson ◽  
David Manlow ◽  
Roger Smith ◽  
Kate Williams
Keyword(s):  
Criminal Justice ◽  
Criminal Justice System ◽  
Government Policy ◽  
Justice System ◽  
The People ◽  
System P ◽  
The Media ◽  
The Government ◽  
Media Corporations ◽  
Policies And Practices

This chapter studies criminal justice policies, practices, and the people who work within the system. It begins by tracing the origins and influences of criminal justice policies. Criminal justice policies predominantly come from the government, but other organisations and individuals such as academics, the media, corporations, and lobbyists can influence them. The motivations behind these policy influencers may vary, but they all share the ultimate aim of ensuring that their preferred strategy is implemented in practice. The chapter then considers the significant impact that ‘penal populism’ can exert on policy, and how government policy is shaping the ways in which the ‘adversarial-lite’ principle is implemented. It assesses use of both of those policies in practice in the courtroom and the community to see how key principles can play out in reality. Finally, the chapter reflects on the effects of all the components upon the people who work in the criminal justice system.

Big Brother is Watching and Controlling You

2021 ◽  
pp. 161-168
Author(s):  
Rob Kitchin
Keyword(s):  
Credit Scoring ◽  
The State ◽  
Big Brother ◽  
Social Credit ◽  
System P ◽  
Automated Surveillance ◽  
Guilt By Association ◽  
Digital Transactions ◽  
The One ◽  
Mass Surveillance

This chapter examines how data-driven technologies are deployed as mass surveillance and social credit scoring in China and their threat to democracy. Over the last decade, China has put in place a state-sponsored system of mass automated surveillance. It has successfully managed to limit the Internet to state-approved websites, apps, and social media, corralling users into a monitored, non-anonymous environment and preventing access to overseas media and information. From December of 2019, all mobile phone users registering new SIM cards must agree to a facial recognition scan to prove their identity. The state has also facilitated the transition from anonymous cash to traceable digital transactions. Most significantly, the state has created a social credit scoring system that pulls together various forms of data into a historical archive and uses it to assign each citizen and company a set of scores that affects their lifestyles and ability to trade. On the one hand, this is about making the credit information publicly accessible, so that those who are deemed untrustworthy are publicly shamed and lose their reputation. On the other hand, it is about guilt-by-association and administering collective punishment. This sociality works to minimize protest and unrest and reinforce the logic of the system.

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