scholarly journals Contagion in the Brazilian interbank currency exchange market: an empirical analysis

2006 ◽  
Vol 36 (2) ◽  
pp. 251-262 ◽  
Author(s):  
Maria Tannuri-Pianto
Keyword(s):  
Empirical Analysis ◽  
Presidential Elections ◽  
Financial Institution ◽  
Financial Contagion ◽  
Exchange Market ◽  
Domino Effect ◽  
Exogenous Shock ◽  
Initial Failure ◽  
Currency Exchange ◽  
Financial Losses

The risk of contagion is the possibility that the failure of a financial institution affected by an exogenous shock generates the failure of other institutions not initially affected by the shock. As pointed out by Upper and Worms (2002) and others, the domino effect in the payment system depends on the precise pattern of interbank linkages. This paper studies the occurrence of financial contagion after the exogenous failure of an institution authorized to operate in the Brazilian interbank currency market. The data contain information about all the actual transactions that occurred in this market from August 1st, 2000 to October 31st, 2002. The adopted methodology shows the occurrence of contagion propagation in several subsequent rounds after the initial failure. We quantify the number of institutions that breakdown and the financial losses of the market. There is a large increase in the number of failed institutions during the period of the presidential elections in 2002.

scholarly journals Analysis of a network structure of the foreign currency exchange market

2009 ◽  
Vol 4 (1) ◽  
pp. 55-72 ◽  
Author(s):  
Jarosław Kwapień ◽  
Sylwia Gworek ◽  
Stanisław Drożdż ◽  
Andrzej Górski
Keyword(s):  
Network Structure ◽  
Foreign Currency ◽  
Exchange Market ◽  
Currency Exchange

Non-Usury Bank Corporation (NUBankCo): The Solution to Islamic Banking

2019 ◽  
Vol 2 (1) ◽  
pp. 53-66
Author(s):  
Bijan Bidabad
Keyword(s):  
Corporate Governance ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Financial Institution ◽  
Precious Metals ◽  
Behavioral Model ◽  
Islamic Banking ◽  
Currency Exchange ◽  
Financial Characteristics ◽  
Conventional Banks

In this paper, we are going to introduce a new Islamic financial institution with elaborated economic and financial characteristics. «Non-Usury Bank Corporation» (NUBankCo) is defined in a way that depositors are the shareholders of the Bank. This corporation is a new kind of shared ownership corporation which its shareholders are deposit holders and their deposits work as corporation’s equities. The defined bank can perform non-usury operations, and by designing a behavioral model, it is shown that NUBankCo can draw an environment that the welfare of society is to be maximized. Mobility of deposit resources in NUBankCo is less than conventional banks, and there are fewer conflicts between large and small shareholders/depositors and limits the emergence of shareholders’ cartels and thus huge sudden outflow of funds which creates bankruptcy crises.OECD’s corporate governance criteria are completely adaptable to this bank. Other pronouncements like Basel, AAOFI, IFSB, and FSF can be applied to this bank. NUBankCo can be established in different countries and can be adapted to different monetary, banking, foreign exchange, and commercial laws and regulations and can coexist in competition with conventional banks.NUbankCo will be Islamic in deposit mobilization side and will be Islamic in the loan/credit side for certain Islamic contracts and banking operations. Foreign currency exchange operations, bonds, commercial papers, and precious metals transactions, cash and draft operations, and credit and beneloan (non-interest loan) operations are characterized for NUBankCo to be fully Islamic.

Chinese currency exchange market

2017 ◽  
pp. 1-12
Author(s):  
Jiangze Du ◽  
Jying-Nan Wang ◽  
Kin Keung Lai ◽  
Chao Wang
Keyword(s):  
Exchange Market ◽  
Currency Exchange

scholarly journals A Dynamical System with Random Parameters as a Mathematical Model of Real Phenomena

Symmetry ◽  
2019 ◽  
Vol 11 (11) ◽  
pp. 1338 ◽  
Author(s):  
Josef Diblík ◽  
Irada Dzhalladova ◽  
Miroslava Růžičková
Keyword(s):  
Markov Chain ◽  
Difference Equations ◽  
Foreign Currency ◽  
Random Structure ◽  
Exchange Market ◽  
Moment Equations ◽  
Random Parameters ◽  
Linear Difference Equations ◽  
Currency Exchange ◽  
The Moment

In many cases, it is difficult to find a solution to a system of difference equations with random structure in a closed form. Thus, a random process, which is the solution to such a system, can be described in another way, for example, by its moments. In this paper, we consider systems of linear difference equations whose coefficients depend on a random Markov or semi-Markov chain with jumps. The moment equations are derived for such a system when the random structure is determined by a Markov chain with jumps. As an example, three processes: Threats to security in cyberspace, radiocarbon dating, and stability of the foreign currency exchange market are modelled by systems of difference equations with random parameters that depend on a semi-Markov or Markov process. The moment equations are used to obtain the conditions under which the processes are stable.

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