scholarly journals The Growth of Finance

2013 ◽  
Vol 27 (2) ◽  
pp. 3-28 ◽  
Author(s):  
Robin Greenwood ◽  
David Scharfstein
Keyword(s):  
Asset Management ◽  
Financial Services ◽  
Financial Sector ◽  
Financial Services Industry ◽  
Shadow Banking ◽  
Preliminary Assessment ◽  
Management Fees ◽  
Active Asset Management ◽  
The Us ◽  
Household Credit

The US financial services industry grew from 4.9 percent of GDP in 1980 to 7.9 percent of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion in household credit, particularly fees associated with residential mortgages. This expansion was fueled by the development of nonbank credit intermediation (or “shadow banking”). We offer a preliminary assessment of whether the growth of active asset management, household credit, and shadow banking—the main areas of growth in the financial sector—has been socially beneficial.

scholarly journals ANALYSIS OF MOBILE SERVICES IN THE FINANCIAL SECTOR / MOBILIŲJŲ PASLAUGŲ ANALIZĖ FINANSŲ SEKTORIUJE

2019 ◽  
Vol 11 (0) ◽  
pp. 1-6
Author(s):  
Evelina Zigmantavičiūtė ◽  
Irma Šileikienė
Keyword(s):  
Financial Services ◽  
Empirical Investigation ◽  
New Technologies ◽  
Financial Sector ◽  
Mobile Services ◽  
Financial Services Industry ◽  
Key Factors ◽  
Financial Applications ◽  
Know How ◽  
Mobile Financial Services

Extensive research of mobile financial services has been conducted in digital finance, FinTech, blockchain and cryptocurrencies. These new technologies and products are changing the financial services industry. It is critically important to know how customers will accept these changes. This article aims to discuss the inclusion of Mobile services in the financial sector and how users are likely to adopt mobile financial applications (MFA). Empirical investigation was conducted into what a customer considers to be most important when using MFA and the correlation between level of income of the user and adoption of MFA in Lithuania and in Germany. The findings show that income influences the adoption of MFA in Lithuania, but has no effect in Germany. Also, the key factors of using MFA are: security, comfortability, fast performance and cost. In addition to analysing results, new recommendations are proposed to improve future mobile financial services.

scholarly journals Asset Management Fees and the Growth of Finance

2013 ◽  
Vol 27 (2) ◽  
pp. 97-108 ◽  
Author(s):  
Burton G Malkiel
Keyword(s):  
Asset Management ◽  
Financial Services ◽  
Low Cost ◽  
Active Management ◽  
Index Funds ◽  
Management Fees ◽  
Us Economy ◽  
The Difference ◽  
Investment Advice ◽  
Managed Funds

From 1980 to 2006, the financial services sector of the US economy grew from 4.9 percent to 8.3 percent of GDP. A substantial share of that increase was comprised of increases in the fees paid for asset management. This paper examines the significant increase in asset management fees charged to both individual and institutional investors. One could argue that the increase in fees charged by actively managed funds could prove to be socially useful if it reflected increasing returns for investors from active management or if it was necessary to improve the efficiency of the market for investors who availed themselves of low-cost passive (index) funds. But neither of these arguments can be supported by the data. Actively managed funds of publicly traded securities have consistently underperformed index funds, and the amount of the underperformance is well approximated by the difference in the fees charged by the two types of funds. Moreover, it appears that there was no change in the efficiency of the market from 1980 to 2011. Thus, the increase in fees is likely to represent a deadweight loss for investors. Indeed, perhaps the greatest inefficiency in the stock market is in “the market” for investment advice.

SEC fines non-US entities for unregistered cross-border brokerage and advisory activities

2017 ◽  
Vol 18 (1) ◽  
pp. 75-77
Author(s):  
James Burns ◽  
Kimberly Beattie Saunders
Keyword(s):  
United States ◽  
Asset Management ◽  
Financial Services ◽  
Financial Institution ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Foreign Firms ◽  
Content Type ◽  
Regulatory Guidance ◽  
The Us

Purpose To explain a settlement involving a foreign financial institution, its non-US subsidiaries, and the US Securities and Exchange Commission (“SEC”) that reveals an SEC focus on policing the activities of foreign firms that reach into the United States and helps further define the scope of activities that require registration under the federal securities laws. Design/methodology/approach Provides insight into a recent area of focus for SEC regulators and introduces the potential regulatory implications for non-US firms with activities that reach into the United States. Findings Given the SEC’s current enforcement focus, it is critical that financial institutions take care to conduct their activities with an understanding of the regulatory requirements associated with the provision of brokerage and advisory services to US clients and customers – including, for many firms, registration as an investment adviser, broker-dealer, or both. Originality/value Practical regulatory guidance regarding SEC registration requirements that may reach non-US firms from experienced financial services lawyers specializing in asset management.

Banking in China

2019 ◽  
pp. 1112-1131
Author(s):  
Leora Klapper ◽  
María Soledad Martínez Pería ◽  
Bilal Zia
Keyword(s):  
Rapid Growth ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Sector ◽  
Shadow Banking ◽  
The World ◽  
Consumer Access ◽  
And Performance ◽  
Credit Boom

The Chinese financial sector has grown at an impressive pace over the last decade, and its banking sector is now the largest in the world. China has also experienced a credit boom, which makes the need to better understand how the Chinese financial sector functions even more important. In this chapter, we first describe the structure and performance of the financial sector in China, focusing largely on banks. Next, we discuss how regulators’ efforts to slow the growth of bank intermediation have been accompanied by rapid growth in shadow-banking products, as banks try to circumvent limits on their ability to grow. Finally, we document China’s progress in expanding consumer access to formal financial services and track the recent expansion of FinTech, especially digital payment products.

The US department of labor’s final “fiduciary” rule incorporates concessions to financial service industry but still poses key challenges

2016 ◽  
Vol 17 (4) ◽  
pp. 1-22
Author(s):  
Kenneth J. Laverierre ◽  
Matthew H. Behrens
Keyword(s):  
Financial Institutions ◽  
Asset Management ◽  
Financial Services ◽  
Service Industry ◽  
Content Type ◽  
Individual Retirement Accounts ◽  
The Us ◽  
Investment Advice ◽  
Management Recommendations ◽  
The Impact

Purpose To describe the main provisions of the US Department of Labor’s final “fiduciary” rule and its related prohibited transaction exemptions and the key challenges the rule poses for financial advisers. Design/methodology/approach This article describes the impact of the new “fiduciary” rule on broker-dealers, banks and other financial organizations who will, for the first time since the passage of ERISA, be subject to ERISA’s fiduciary standards and remedies when providing investment and asset management recommendations to individual retirement accounts and other retail retirement clients. Findings The most immediate impact of the rule will be on the compensation practices at broker-dealers and other financial institutions and on the fee and revenue sharing arrangements among funds, fund sponsors and the financial institutions that offer investment advice to retail retirement clients. Although the new rule responds to many of the concerns raised by the financial services industry, compliance with the rule will require the restructuring of pay and compliance policies at financial institutions servicing retail clients. Originality/value Practical guidance from experienced ERISA lawyers.

Business Reorganisation and Regional Development: The Case of the British Building Societies Movement

1991 ◽  
Vol 23 (12) ◽  
pp. 1759-1777 ◽  
Author(s):  
C J S Gentle ◽  
J N Marshall ◽  
M G Coombes
Keyword(s):  
Financial Services ◽  
Urban Areas ◽  
Service Sector ◽  
Financial Sector ◽  
Financial Services Industry ◽  
Building Society ◽  
Regulatory Changes ◽  
Services Industry ◽  
Building Societies ◽  
The Impact

In this paper the impact of corporate restructuring in the British building societies movement is examined as an example of the changing organisation of the financial services industry, a significant component of the service sector. It is argued that regulatory changes, which have broken down the segmented and compartmentalised nature of the financial sector, have provided the opportunity for large building societies to diversify into new markets, and this in turn has encouraged a round of innovation in the financial services industry. It is also suggested that as the building society movement has become more deeply integrated into the financial sector as a whole, this has promoted a drift in employment towards the south and east of the country and a shift back to larger urban areas in the provinces.

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