The Collateral Composition Channel

2020 ◽  
Vol 12 (1) ◽  
pp. 41-75
Author(s):  
Frédéric Boissay ◽  
Russell Cooper
Keyword(s):  
Financial Markets ◽  
Large Volume ◽  
Financial Sector ◽  
Cash Flows ◽  
Creation Process ◽  
Collateral Constraints ◽  
Incentive Problems ◽  
The Cost ◽  
Asset Creation

Wholesale financial markets reallocate deposits. Because of incentive problems, these flows are limited by endogenous collateral constraints. The composition of collateral matters. The use of inside collateral creates a “collateral pyramid”: cash flows from one loan are pledged to secure another. Outside collateral, such as treasuries, stabilizes the pyramid. Through collateral pyramids the financial sector sustains a large volume of reallocation across banks, but at the cost of systemic panics. During panics, the safe asset creation process stalls, the pyramid collapses, collateral becomes scarce. Markets are more fragile when loans are secured by inside collateral. (JEL E32, E44, G01, G21)

Evolution of the Global Financial Market Regulation in the Post-Crisis Period of Global Economic Recovery

2014 ◽  
Vol 2014 (4) ◽  
pp. 21-42
Author(s):  
Sergey Dubinin
Keyword(s):  
Financial Markets ◽  
Financial Sector ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Financial Centre ◽  
Regulation Of Financial Markets ◽  
Financial Center ◽  
The Cost ◽  
Financial Transactions ◽  
International Financial Center

This article focuses on changes in regulation of financial markets abroad after the financial crisis of 2007-2009 and provides comments on the effectiveness of such regulation. Specially the author analyzes the risks that the derivatives market creates for the financial sector and proposes mechanisms to enhance transparency and stability of the market. The author considers how introduction rules of FATCA and FCPA to the U.S. will influence on the financial sector, the possibility of continuing Russian banks overseas financial transactions, the cost of loans to Russian companies. Also the author writes how the introduction of Tobin tax will impact on international financial transactions in Europe. He describes the changes in the area of offshore jurisdictions in the world occur. There is the experience of creating an international financial center abroad. He gives information on what measures taken to transform the emirate of Dubai to International Financial Centre. In conclusion, the author proposes measures of increase of investment attractiveness of Russia and the possibility of establishing a Russian international financial center.

Inventory optimization considering the vehicle capacity and specifics of cash flows at rental storage sites

2020 ◽  
pp. 77-90
Author(s):  
V.D. Gerami ◽  
I.G. Shidlovskii
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Sufficient Conditions ◽  
Cash Flows ◽  
Management Systems ◽  
Cargo Capacity ◽  
Special Modification ◽  
The Cost ◽  
Necessary And Sufficient ◽  
Vehicle Capacity

The article presents a special modification of the EOQ formula and its application to the accounting of the cargo capacity factor for the relevant procedures for optimizing deliveries when renting storage facilities. The specified development will allow managers to take into account the following process specifics in the format of a simulated supply chain when managing inventory. First of all, it will allow considering the most important factor of cargo capacity when optimizing stocks. Moreover, this formula will make it possible to find the optimal strategy for the supply of goods if, also, it is necessary to take into account the combined effect of several factors necessary for practice, which will undoubtedly affect decision-making procedures. Here we are talking about the need for additional consideration of the following essential attributes of the simulated cash flow of the supply chain: 1) time value of money; 2) deferral of payment of the cost of the order; 3) pre-agreed allowable delays in the receipt of revenue from goods sold. Developed analysis and optimization procedures have been implemented to models of this type that are interesting and important for a business. This — inventory management systems, the format of which is related to the special concept of efficient supply. We are talking about models where the presence of the specified delays for the outgoing cash flows allows you to pay for the order and the corresponding costs of the supply chain from the corresponding revenue on the re-order interval. Accordingly, the necessary and sufficient conditions are established based on which managers will be able to identify models of the specified type. The purpose of the article is to draw the attention of managers to real opportunities to improve the efficiency of inventory management systems by taking into account these factors for a simulated supply chain.

FEATURES OF BUSINESS VALUATION AND VALUE IN MODERN CONDITIONS

2020 ◽  
Author(s):  
A. R. Plotkina ◽  
A. A. Monin
Keyword(s):  
Analytical Data ◽  
Cash Flows ◽  
Business Valuation ◽  
Main Factors ◽  
The Cost

The paper considers the features of determining the cost and evaluating business in the new reality caused by the pandemic, highlights the main factors that affect the cost of business, and concludes that it is necessary to use various sources of analytical data to assess cash flows

Collateral Constraints, Wage Rigidity, and Jobless Recoveries

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Tobias Föll
Keyword(s):  
Wage Rigidity ◽  
Jobless Recoveries ◽  
Collateral Constraints ◽  
Collateral Constraint ◽  
The Great Recession ◽  
Matching Frictions ◽  
Search And Matching Frictions ◽  
Business Cycle Model ◽  
The Cost

Abstract The Great Recession has drawn attention to the importance of macro-financial linkages. In this paper I explore the joint role of imperfections in labor and financial markets for the cyclical adjustment of the labor market. I show that jobless recoveries emerge when, upon exiting a recession, firms are faced with deteriorating credit conditions. On the financial side, collateral requirements affect the cost of borrowing for firms. On the employment side, hiring frictions and wage rigidity increase the need for credit, making the binding collateral constraint more relevant. In a general equilibrium business cycle model with search and matching frictions, I illustrate that tightening credit conditions calibrated from data negatively affect employment adjustments during recovery periods. Wage rigidity substantially amplifies this mechanism, generating empirically plausible fluctuations in employment and output.

Analysis of the Relationship between Currency Redenomination and Financial Transaction Costs in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 59-68
Author(s):  
Hassana Aliyu MOHAMMED ◽  
◽  
Abdurrahman ISIK ◽  
Paul Terhemba IOREMBER ◽  
◽  
...  
Keyword(s):  
Transaction Costs ◽  
Financial Institutions ◽  
Financial Sector ◽  
Chi Square ◽  
User Costs ◽  
Inflationary Pressure ◽  
Cash Payment ◽  
Chi Square Test ◽  
The Cost ◽  
The Relationship

The study analyses the relationship between currency redenomination and financial sector transaction costs in Nigeria using a sample of 200 respondents from ten financial institutions. Applying the Chi-square test, the study reveals that high currency redenomination removes wasteful transactions removes user costs (difficulties arising from memorizing, calculating and carrying large sum of lowest denominations: coins and smaller notes). The results also show that currency redenomination influences inflationary pressure and currency liberalization in Nigeria. Based on the findings the study recommends the introduction of currency redenomination to facilitate the consumers' cash payment and reduce the cost incurred by producers and issuing authorities, and also make payment system more efficient and effective.

scholarly journals The Cost of Capital of the Financial Sector

2015 ◽  
Author(s):  
Tobias Adrian ◽  
Evan Friedman ◽  
Tyler Muir
Keyword(s):  
Cost Of Capital ◽  
Financial Sector ◽  
The Cost

scholarly journals EQUILIBRIUM ASSET RETURNS IN FINANCIAL MARKETS

2019 ◽  
Vol 22 (02) ◽  
pp. 1850063 ◽  
Author(s):  
DILIP B. MADAN ◽  
WIM SCHOUTENS
Keyword(s):  
Financial Markets ◽  
Fixed Points ◽  
Asset Prices ◽  
Asset Returns ◽  
Expected Returns ◽  
Response Functions ◽  
Limit Laws ◽  
Return Distributions ◽  
Equilibrium Distributions ◽  
The Cost

Return distributions in the class of pure jump limit laws are observed to reflect numerous asymmetries between the upward and downward motions of asset prices. The return distributions are modeled by self-decomposable parametric laws with all parameters continuously responding to each other. Fixed points of the response functions define equilibrium distributions. The equilibrium distributions that can arise in practice are constrained by the level of return acceptability they may attain. As a consequence, expected returns are equated to risk measured by the cost of purchasing the negative of the centered return. The asymmetries studied include differences in scale, speed, power variation, excitation and cross-excitation.

scholarly journals FORMATION OF THE REGULATION OF THE NATIONAL ECONOMY’S FINANCIAL SECTOR

2021 ◽  
Author(s):  
Roman Sharavara
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Technological Development ◽  
Financial Sector ◽  
Cash Flows ◽  
Financial Supervision ◽  
National Regulation ◽  
Market Participants ◽  
Modern Economic ◽  
National Economies

An analysis of the applied forms of cross-sectoral approach to the organization of supervision and regulation of the financial sector of different types of national economies, including the Ukrainian one, is presented. Particular attention is paid to the role of the central bank in improving the coordination of regulators of the national financial market. It is determined that effective financial supervision, in the modern sense, should combine the performance of three key functions: macroprudential supervision, microprudential supervision and business integrity supervision. With technological development, the integration of financial sector segments and the emergence of complex financial products, the segmental core of regulation has been lost. One of the main current problems is to identify the risks posed by integrated financial instruments, financial corporations take them on, and also track the ways in which they spread. Institutional and sectoral models of financial supervision are analyzed. A common feature of institutional and functional approaches is the growing need to improve the coordination of national financial regulators and comprehensively increase its efficiency. The expediency of creating a macro-regulator in the conditions of modern economic systems is substantiated. The possibility of consolidated supervision is revealed, which eliminates interdepartmental conflict of interests, better control of transactions and cash flows. Peculiarities of macroregulators functioning in Great Britain, Australia, and the Netherlands have been studied. Developing a unified approach can increase the speed of response to identified threats and its adequacy, as well as reduce regulatory arbitrage by supervised organizations. The mega-regulator is able to provide due attention to the control of the integrity of business by financial market participants, protection of interests and awareness of market participants and consumers of financial services in comparison with the functional and institutional models. The priority system of national regulation of the financial sector for the Ukrainian economy is determined.

scholarly journals Analysis And Directions Of Development Of The Practice Of Attracting Capital From The Financial Market Of Joint-Stock Companies. Evidence From Uzbekistan

2020 ◽  
Vol 02 (12) ◽  
pp. 136-144
Author(s):  
Buvsara Tashmuradova ◽  
◽  
Omonullo Hamdamov ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Financial Sector ◽  
Economic Importance ◽  
Current Situation ◽  
Financial Resources ◽  
International Financial Markets ◽  
The Republic ◽  
National Practice

The paper describes the economic importance of attracting financial resources from the national and international financial markets by joint stock companies operating in the Republic of Uzbekistan. The current situation with the attraction of capital from the international financial markets by companies in the financial sector has been analyzed and key conclusions have been drawn. In national practice, the existing shortcomings in the financing of companies on the basis of debt instruments have been studied and scientific proposals have been developed to address them.

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