Establishing credible rules for Fed emergency lending

2017 ◽  
Vol 9 (3) ◽  
pp. 260-267 ◽  
Author(s):  
Charles W. Calomiris ◽  
Douglas Holtz-Eakin ◽  
R. Glenn Hubbard ◽  
Allan H. Meltzer ◽  
Hal S. Scott
Keyword(s):  
Financial Crisis ◽  
Moral Hazard ◽  
Empirical Evidence ◽  
Financial Institutions ◽  
Federal Reserve ◽  
Design Methodology ◽  
Costs And Benefits ◽  
Content Type ◽  
Systemic Crises ◽  
Practical Implications

Purpose The purpose of this paper is to propose reforms that would establish a credible framework of rules to constrain and guide emergency lending by the Federal Reserve and by fiscal authorities during a future financial crisis. Design/methodology/approach The authors propose a set of five overarching rules, informed by history, empirical evidence and theory, which would serve as the foundation on which detailed legislation should be constructed. Findings The authors find that the current framework governing emergency lending – including reforms to Federal Reserve lending enacted after the recent crisis – is inadequate and not credible, and that their proposed framework would constitute a credible balancing of costs and benefits. Practical implications Adequate assistance to financial institutions would be provided in systemic crises but would be limited in its form, and by the process that would govern its provision. Originality/value This framework would serve as a basis for establishing effective rules that would be credible, and that would properly balance the moral-hazard costs of emergency lending against the gains from avoiding systemic collapse of the financial system.

Financial crisis solutions in the commercial paper market

2019 ◽  
Vol 45 (2) ◽  
pp. 294-310 ◽  
Author(s):  
Joshua Fairbanks ◽  
Mark Griffiths ◽  
Drew Winters
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Design Methodology ◽  
Policy Implications ◽  
Policy Debate ◽  
Content Type ◽  
Money Markets ◽  
Commercial Paper ◽  
Future Policy ◽  
Practical Implications

Purpose The purpose of this paper is to examine programs designed to support the commercial paper market during the financial crisis. Design/methodology/approach The paper analyzes the participants in the two programs to determine why domestic financial institutions chose one program over the other. Findings Domestic financial institutions chose the Temporary Liquidity Guarantee Program over the Commercial Paper Funding Facility (CPFF) while foreign financial institutions chose the CPFF. Practical implications The analysis is intended to support future policy debate on how to address a liquidity crisis in the money markets. Originality/value The authors are the first paper to examine the participants in these two programs. The value is the policy implications of this study.

Money laundering in a CBDC world: a game of cats and mice

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Dupuis ◽  
Kimberly Gleason ◽  
Zhijie Wang
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Economic Activity ◽  
Design Methodology ◽  
Central Banks ◽  
Content Type ◽  
Digital Currency ◽  
Individual Privacy ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this study is to describe the present taxonomy of money, summarize potential central bank digital currency (CBDC) regimes that central banks worldwide could adopt and explore the implications of the introduction of each of these CDBC regimes for money laundering through the lens of the regulatory dialectic theory. Design/methodology/approach The methodology used in the analysis of significant recent events regarding the progress of central banks in establishing a CBDC and the implications for money laundering under a CBDC regime. This paper also reviews the literature regarding the Regulatory Dialectic to highlight potential innovative responses of money launderers to circumvent the controls generated through the implementation of a CBDC. Findings This study examines the impact of Kane’s regulatory dialectic paradigm on the feasibility of money laundering under a CBDC regime and identifies potential avenues that would be available for those seeking to launder money, based on the form a CBDC would take. Research limitations/implications This paper is unable as of yet to empirically evaluate anti-money laundering (AML) tactics under a CBDC regime as it has not yet been fully implemented. Practical implications Many central banks worldwide are evaluating the structure of and introduction of a CBDC. There are a number of forms that a CBDC could take, each of which has implications for individual privacy and for entities involved in AML efforts within financial institutions and the regulatory community. The paper has implications for AML experts who are considering how AML procedures would change under a CBDC regime. Social implications The regulatory dialectic predicts that regulatory response reactive, rather than proactive when it comes to socially undesirable phenomena. As central banks and governments seek to divert economic activity away from the laundering of the proceeds of illicit activity, there are tradeoffs in terms of a loss of privacy. The regulatory dialectic predicts a corresponding innovative response of those who wish to undermine the controls generated through the establishment of a CBDC. Originality/value To the authors’ knowledge, this is the first paper to explore the impact of a potential CBDC on money laundering and the potential innovative circumventions within the paradigm of the Regulatory Dialectic.

The blame game

2020 ◽  
Vol 36 (7) ◽  
pp. 11-13
Keyword(s):  
Supply Chain ◽  
Financial Crisis ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Global Market ◽  
Content Type ◽  
Corporate Failure ◽  
Pertinent Information ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Why do firms fail? The reasons behind given for corporate failure vary widely. During the financial crisis, firms failed because of the financial crisis, or during the Coronavirus pandemic firms failed due to the Coronavirus pandemic. When there are global market problems, those problems tend to get the blame for most things, including firms going under. But other reasons are sometimes given as well – that a firm is carrying too much debt to be sustainable, or a hypercompetitive market, or there are unsurmountable problems in the supply chain. Very often, these reasons are not scrutinized very closely as everyone moves on to invest in another company or try and find work elsewhere. Practical implications Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Original/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The rationale of part-time farming: empirical evidence from Norway

2017 ◽  
Vol 44 (1) ◽  
pp. 53-59 ◽  
Author(s):  
Klaus Mittenzwei ◽  
Stefan Mann
Keyword(s):  
Empirical Evidence ◽  
Household Income ◽  
Design Methodology ◽  
Farm Households ◽  
Apparent Contradiction ◽  
Content Type ◽  
Level Data ◽  
Part Time ◽  
On Farm ◽  
Practical Implications

Purpose Outside farming, pluriactivity is generally considered as undesirable, whereas agricultural economists tend to recommend part-time farming. This contradiction is to be solved. The paper aims to discuss this issue. Design/methodology/approach Linking tax-payer and statistical farm-level data from Norway, the authors tested how profitable part-time farming is for Norwegian farm households. Findings The analysis showed that concentrating on either working on-farm or off-farm generates a higher household income than combining the two. Practical implications Part-time farming may be a lifestyle decision, but apparently is not economically optimal for most farms. Originality/value The contribution solves an apparent contradiction between the discourses inside and outside agriculture.

scholarly journals Guarantees used in refundable financing of innovation in micro, small and medium-sized enterprises

2019 ◽  
Vol 16 (3) ◽  
pp. 253-268 ◽  
Author(s):  
Richard Cunha Schmidt ◽  
Micheline Gaia Hoffmann
Keyword(s):  
Financial Institutions ◽  
Design Methodology ◽  
Structured Interviews ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Access To Credit ◽  
Regional Bank ◽  
Knowledge Intensive ◽  
The One ◽  
Practical Implications

Purpose Despite the increasing availability of financing programs for innovation, micro, small and medium-sized enterprises (MSMEs) often find it difficult to access credit for their projects. Among the reasons, the lack of the types of guarantees required by financial institutions stands out. Focused on this problem, in 2013, the Regional Bank for the Development of the Extreme South (BRDE) created a policy to stimulate innovation, making the required guarantees for financing operations of innovative companies more flexible: the BRDE Inova Program. This paper aims to analyze the guarantees used in the bank operations since the beginning of the program. Design/methodology/approach In the first stage of the research, the authors identified the guarantees used in each of the signed contracts, through a documentary survey. Next, semi-structured interviews showed the perceptions of the players involved in the innovation ecosystem of the state of Santa Catarina, regarding aspects related to the guarantees. Specifically, the authors investigated the following elements: strengths and limitations of the programs regarding access to credit for innovation; adequacy of existing guarantee mechanisms. To strengthen the conclusions, they used triangulated data collection in different stages. Findings The results showed that, on the one hand, the initiative helped BRDE to consolidate itself as the main financing agent of innovation in MSMEs; on the other hand, the need for traditional guarantees still plays a significant role for innovative MSMEs to access credit. Originality/value In addition to practical implications for the bank and other financing agents’ policies, this paper contributes to fill a gap in the literature on guarantee systems applied to the specificities of knowledge-intensive MSMEs.

Taking the ethical lead

2020 ◽  
Vol 34 (4) ◽  
pp. 37-39
Keyword(s):  
Financial Crisis ◽  
Oil Spill ◽  
Design Methodology ◽  
Reading Time ◽  
Global Financial Crisis ◽  
Content Type ◽  
Lehman Brothers ◽  
Pertinent Information ◽  
The Global Financial Crisis ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds his/her own impartial comments and places the articles in context. Findings Take any financial or environmental scandal perpetrated by a major company – and unfortunately, there are quite a few to choose from – and people will tend to remember what went wrong and some of the fallout from the scandal, but it is unlikely they will know much about why something went wrong. For example, people will remember that Lehman Brothers went bust during the global financial crisis (GFC) in 2008 and can picture its employees leaving its offices with Iron Mountain boxes. They will also perhaps remember the Exxon Valdez oil spill in Alaska in 1989, and the devastation it caused the local wildlife. But does anyone remember exactly why these events occurred? Practical implications This paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Intellectual capital disclosure practices of financial institutions in an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Abdulla Al Mamun ◽  
Alima Aktar
Keyword(s):  
Financial Institutions ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Content Type ◽  
Strategic Resources ◽  
Depth Analysis ◽  
External Capital ◽  
Practical Implications

Purpose The purpose of this study is to investigate the intellectual capital disclosure (ICD) practices of financial institutions in an emerging economy of Bangladesh. Design/methodology/approach Based on 93 items of intellectual capital categorized into internal capital, external capital and human capital, ICD index is developed for 53 financial institutions listed in Dhaka Stock Exchange. This study uses descriptive statistics to analyze ICD practices, and parametric and non-parametric tests to analyze the variation of ICD practices in terms of different categories as well as in terms of different sectors. Findings Results indicate that more than 70% of ICD items are generally not disclosed by financial institutions in Bangladesh. The highest of 36% of external capital disclosure items are disclosed, whereas the lowest of 18% of human resource capital elements are disclosed. Furthermore, results find the significant variability of ICD practices in terms of different intellectual capital categories and in between banking companies and non-banking financial institutions. Practical implications Findings have critical implications for managers, policymakers and regulators for setting appropriate strategies and regulations for improving the level of ICD, which, in turn, may reduce the information asymmetry problems of financial institutions as well. Originality/value In-depth analysis about variability of ICD practices creates value in the ICD literature by highlighting strategic priority of financial institutions to disclose information about the strategic resources in unique emerging economic settings such as Bangladesh.

The dark side of experience-seeking mall shoppers

2016 ◽  
Vol 44 (12) ◽  
pp. 1206-1222 ◽  
Author(s):  
Mark Scott Rosenbaum ◽  
Mauricio Losada Otalora ◽  
Germán Contreras Ramírez
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Word Of Mouth ◽  
Survey Methodology ◽  
Dark Side ◽  
Positive Word ◽  
Content Type ◽  
Financial Benefits ◽  
Positive Word Of Mouth ◽  
Practical Implications

Purpose The purpose of this paper is to illustrate that mall shoppers who participate in a mall’s experiential offerings, including entertainment and activities, do not necessarily exhibit more favorable attitudes or behaviors toward the mall than mall shoppers who do not participate in these offerings. Design/methodology/approach This study employs survey methodology from a sample collected in an expansive regional mall that offers customers experiential activities. Findings The findings show that mall shoppers who partake in mall-based activities are less satisfied, are less likely to spread positive word of mouth, and have lesser desire to return to the mall than shoppers who do not partake in these activities. The findings also reveal that mall expenditures are the same between shoppers who partake in mall activities and those who do not. Research limitations/implications Researchers have argued that malls can compete with digital retailers by offering shoppers experiential activities. Although segments of shoppers partake in these activities, this study finds that experiential investments do not result in significant favorable shopper outcomes. Practical implications Mall developers that implement experiential offerings as a means to combat competition from digital retailers may not attain managerially relevant results from doing so. Originality/value Although retailing academics and consultants espouse the idea that retailers can obtain financial benefits by creating memorable experiences for shoppers, this research offers empirical evidence that counters these speculations. In the case of enclosed malls, investments in experiential features and activities may not lead to improved shopper attitudes, behaviors, or sales.

Nothing ventured nothing gained

2014 ◽  
Vol 30 (4) ◽  
pp. 9-11
Keyword(s):  
Economic Crisis ◽  
Financial Institutions ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
The World ◽  
World Economic ◽  
Pertinent Information ◽  
Practical Implications ◽  
World Economic Crisis

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – With the aftershocks of a world economic crisis still reverberating, a common cry among businesses and entrepreneurs who have the potential to create ventures and jobs is that they just cannot get the necessary funding from financial institutions which, understandly, are less free and easy with their loans than they once were. Throughout the world, a lack of funding has been flagged up as a major hindrance to recovery. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to digest format.

What is project alliance capability?

2017 ◽  
Vol 10 (2) ◽  
pp. 404-422 ◽  
Author(s):  
Anna-Maija Hietajärvi ◽  
Kirsi Aaltonen ◽  
Harri Haapasalo
Keyword(s):  
Best Practices ◽  
Empirical Evidence ◽  
Empirical Research ◽  
Design Methodology ◽  
Organizational Capabilities ◽  
Project Delivery ◽  
Research Approach ◽  
Content Type ◽  
Complex Projects ◽  
Practical Implications

Purpose Project alliancing – a project delivery model used in delivering complex projects – demands new organizational capabilities for successful project implementation. The purpose of this paper is to define the concept of project alliance (PA) capability and to identify the elements that constitute an organization’s PA capability. Design/methodology/approach This study provides empirical evidence of PA capability based on an investigation of participants’ experiences of Finnish construction and infrastructure alliance projects. The adopted research approach is qualitative and inductive. Findings The paper conceptualizes PA capability and defines the elements that constitute an organization’s PA capability, including important activities in the pre-formation, development and post-formation phases of PAs and the contractual, behavioral, relational, and operational skills that organizations need for successful alliance project initiation and implementation. Practical implications The identified alliance project activities are targets for routinization and best practices that organizations can deploy from one project to another. The identified skills indicate areas in which organizations should build and develop expertise. Originality/value There is limited empirical research on the elements defining an organization’s capability to bid, manage and operate in alliance projects. This study presents some preliminary thoughts to augment knowledge of the successful initiation and management of alliance projects and to suggest why some organizations may be more successful than others in alliance projects.

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