scholarly journals Analiza potencjalnych korzyści oraz negatywnych konsekwencji wdrożenia norm LCR oraz NSFR w bankach europejskich

2015 ◽  
Vol 1 (3) ◽  
pp. 207-226
Author(s):  
Paweł Niedziółka
Keyword(s):  
Growth Rate ◽  
Banking Sector ◽  
Negative Impact ◽  
Balance Sheet ◽  
Short Term ◽  
The Real ◽  
Structure Changes ◽  
Sheet Structure ◽  
The Cost

The introduction of liquidity ratios on the banking sector and the real economywill lead to adaptation of the banks. Mismatch between the maturity of assets andliabilities will be subject to reduction. These shifts in the banks’ balance sheetsmay result in diminishing profitability of banks as long as the cost of maintainingadditional capital and balance sheet structure changes will not be passed on to customers. Another consequence may be an impediment to access of nonfinancialentities to long-term financing. Thus, increased cost of credit and reductionof its availability in the short term will have negative impact on economicgrowth while introduction of liquidity standards and new capital requirementssignificantly reduces the probability of a banking crisis, which compensates forinterim and slight decrease in the growth rate.

scholarly journals Preventing co-infection: a viral strategy with short-term benefits and long-term drawbacks

2021 ◽  
Author(s):  
Michael Hunter ◽  
Diana Fusco
Keyword(s):  
Growth Rate ◽  
Life History ◽  
Negative Impact ◽  
Viral Evolution ◽  
Viral Fitness ◽  
Viral Population ◽  
Short Term ◽  
Life History Parameters ◽  
Wide Range

ABSTRACTViral co-infection occurs when multiple distinct viral particles infect the same host. This can impact viral evolution through intracellular interactions, complementation, reassortment and recombination. In nature many viral species are found to have a wide range of mechanisms to prevent co-infection, which raises the question of how viral evolution is impacted by this strategic choice. Here, we address this question in a model viral system, the ubiquitous bacteriophage and its host bacteria. Using a stochastic model of phage-host interactions in agent-based simulations, we first characterise the behaviour of neutral mutants and find that co-infection decreases the strength of genetic drift. We then quantify how variations in the phage life history parameters affect viral fitness. Importantly, we find that the growth rate (dis)advantage associated with variations in life history parameters can be dramatically different from the competitive (dis)advantage measured in direct-competition simulations. Additionally, we find that co-infection facilitates the fixation of beneficial mutations and the removal of deleterious ones, suggesting that selection is more efficient in co-infecting populations. We also observe, however, that in populations which allow co-infection, a mutant that prevents it displays a substantial competitive advantage over the rest of the population, and will eventually fix even if it displays a much lower growth rate in isolation. Our findings suggest that while preventing co-infection can have a negative impact on the long-term evolution of a viral population, in the short-term it is ultimately a winning strategy, possibly explaining the prevalence of phage capable of preventing co-infection in nature.

scholarly journals Basis Risk and Net Interest Income of Banks

2016 ◽  
Vol 16 (2) ◽  
pp. 40-59
Author(s):  
Piotr Mielus ◽  
Tomasz Mironczuk ◽  
Anna Zamojska
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Balance Sheet ◽  
Actual Cost ◽  
Short Term ◽  
Basis Risk ◽  
Interest Income ◽  
The Difference

Abstract The results of the banking sector are shaped primarily by commissions and net interest income. Net interest income is determined by the difference between the profitability of bank assets and liabilities. In the case when a different method is used to determine interest for each side of the balance sheet, there occurs a basis risk that may lead to the deterioration in the net interest income of the sector. This is the situation in the Polish banking sector, which is characterized by the presence of variable interest rates for long-term assets and fixed interest rates for short-term liabilities. The study aims to verify the following thesis: in an environment of falling interest rates we can observe the deterioration in net interest income of the banking sector, as a result of the materialization of the basis risk. The authors of the article state that the source of the basis risk is the mismatch between the reference rate used to define the interest flow of loans and the actual cost of financing the balance through term deposits collected from non-financial entities.

scholarly journals Liquidity of commercial banks in Portugal and Spain

2021 ◽  
Vol 10 (1) ◽  
pp. 46-64
Author(s):  
Marco Amaral
Keyword(s):  
Financial Markets ◽  
Commercial Banks ◽  
Banking Sector ◽  
Balance Sheet ◽  
Annual Reports ◽  
Short Term ◽  
Liquidity Management ◽  
Banking Business ◽  
Critical Aspects

Liquidity is very important for the functioning of financial markets, especially for the banking sector, because one of the critical aspects in the banking business is precisely the process of transforming short-term funds and placing them in the medium and long term. This paper aims to comprehensively assess the liquidity positions of Portuguese and Spanish commercial banks through different liquidity ratios for the period from 2002 to 2015 and understand whether the liquidity management strategy differs by bank size. To this end, unconsolidated balance sheet data were used, which were obtained from the banks annual reports. The sample includes a significant part of the Portuguese and Spanish banking sector (not only by the number of banks, but also by the representation in banks total assets). The results obtained show that Spain's banks' liquidity indicator has decreased over the last four years. In contrast, bank liquidity indicator in Portugal varied slightly positively during the period 2002-2006 but decreased sharply between 2010 to 2015. Bank liquidity increased slightly during the period of the financial crisis in both countries, namely between from 2007 to 2009. Finally, it is concluded that smaller banks have less fluctuating liquidity management, i.e., large and medium-sized banks show greater variation in bank liquidity in the period under analysis, i.e., they are less liquid.

Hidden “holes” in the capital of banks and the supply of credit to the real sector of economy

2018 ◽  
pp. 49-68 ◽  
Author(s):  
M. E. Mamonov
Keyword(s):  
Credit Risk ◽  
The Other ◽  
Real Sector ◽  
Capital Management ◽  
Loan Loss ◽  
Short Term ◽  
The Real ◽  
Ex Post ◽  
The One

Our analysis documents that the existence of hidden “holes” in the capital of not yet failed banks - while creating intertemporal pressure on the actual level of capital - leads to changing of maturity of loans supplied rather than to contracting of their volume. Long-term loans decrease, whereas short-term loans rise - and, what is most remarkably, by approximately the same amounts. Standardly, the higher the maturity of loans the higher the credit risk and, thus, the more loan loss reserves (LLP) banks are forced to create, increasing the pressure on capital. Banks that already hide “holes” in the capital, but have not yet faced with license withdrawal, must possess strong incentives to shorten the maturity of supplied loans. On the one hand, it raises the turnovers of LLP and facilitates the flexibility of capital management; on the other hand, it allows increasing the speed of shifting of attracted deposits to loans to related parties in domestic or foreign jurisdictions. This enlarges the potential size of ex post revealed “hole” in the capital and, therefore, allows us to assume that not every loan might be viewed as a good for the economy: excessive short-term and insufficient long-term loans can produce the source for future losses.

scholarly journals The interplay of gender, social context, and long-term unemployment effects on subjective health trajectories

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Laura Altweck ◽  
Stefanie Hahm ◽  
Holger Muehlan ◽  
Tobias Gfesser ◽  
Christine Ulke ◽  
...  
Keyword(s):  
Life Satisfaction ◽  
Social Context ◽  
Negative Impact ◽  
Subjective Health ◽  
Short Term ◽  
Self Rated Health ◽  
Health Trajectories ◽  
Lower Baseline ◽  
Baseline Values

Abstract Background While a strong negative impact of unemployment on health has been established, the present research examined the lesser studied interplay of gender, social context and job loss on health trajectories. Methods Data from the German Socio-Economic Panel was used, which provided a representative sample of 6838 participants. Using latent growth modelling the effects of gender, social context (East vs. West Germans), unemployment (none, short-term or long-term), and their interactions were examined on health (single item measures of self-rated health and life satisfaction respectively). Results Social context in general significantly predicted the trajectories of self-rated health and life satisfaction. Most notably, data analysis revealed that West German women reported significantly lower baseline values of self-rated health following unemployment and did not recover to the levels of their East German counterparts. Only long-term, not short-term unemployment was related to lower baseline values of self-rated health, whereas, in relation to baseline values of life satisfaction, both types of unemployment had a similar negative effect. Conclusions In an economic crisis, individuals who already carry a higher burden, and not only those most directly affected economically, may show the greatest health effects.

scholarly journals Methods to Prevent Future Severe Animal Welfare Problems Caused by COVID-19 in the Pork Industry

Animals ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 830
Author(s):  
Temple Grandin
Keyword(s):  
Animal Welfare ◽  
Detrimental Effect ◽  
Third Party ◽  
Electrical Parameters ◽  
Short Term ◽  
Pork Industry ◽  
Third Party Auditing ◽  
The Cost ◽  
High Welfare

In the U.S., the most severe animal welfare problems caused by COViD-19 were in the pork industry. Thousands of pigs had to be destroyed on the farm due to reduced slaughter capacity caused by ill workers. In the future, both short-term and long-term remedies will be needed. In the short-term, a portable electrocution unit that uses scientifically validated electrical parameters for inducing instantaneous unconsciousness, would be preferable to some of the poor killing methods. A second alternative would be converting the slaughter houses to carcass production. This would require fewer people to process the same number of pigs. The pandemic revealed the fragility of large centralized supply chains. A more distributed supply chain with smaller abattoirs would be more robust and less prone to disruption, but the cost of pork would be greater. Small abattoirs can coexist with large slaughter facilities if they process pigs for specialized premium markets such as high welfare pork. The pandemic also had a detrimental effect on animal welfare inspection and third party auditing programs run by large meat buyers. Most in-person audits in the slaughter plants were cancelled and audits were done by video. Video audits should never completely replace in-person audits.

scholarly journals CANDIDE et la monnaie

2009 ◽  
Vol 52 (1) ◽  
pp. 75-103
Author(s):  
Jean-Pierre Aubry ◽  
Pierre Duguay
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Term Structure ◽  
Structural Equations ◽  
Reduced Form ◽  
Real Sector ◽  
Short Term ◽  
The Real ◽  
Structure Equations

Abstract In this paper we deal with the financial sector of CANDIDE 1.1. We are concerned with the determination of the short-term interest rate, the term structure equations, and the channels through which monetary policy influences the real sector. The short-term rate is determined by a straightforward application of Keynesian liquidity preference theory. A serious problem arises from the directly estimated reduced form equation, which implies that the demand for high powered money, but not the demand for actual deposits, is a stable function of income and interest rates. The structural equations imply the opposite. In the term structure equations, allowance is made for the smaller variance of the long-term rates, but insufficient explanation is given for their sharper upward trend. This leads to an overstatement of the significance of the U.S. long-term rate that must perform the explanatory role. Moreover a strong structural hierarchy, by which the long Canada rate wags the industrial rate, is imposed without prior testing. In CANDIDE two channels of monetary influence are recognized: the costs of capital and the availability of credit. They affect the business fixed investment and housing sectors. The potential of the personal consumption sector is not recognized, the wealth and real balance effects are bypassed, the credit availability proxy is incorrect, the interest rate used in the real sector is nominal rather than real, and the specification of the housing sector is dubious.

scholarly journals BANK PROFITABILITY AND MACROECONOMY: EVIDENCE FROM LITHUANIA

2017 ◽  
Vol 24 (2) ◽  
pp. 383-405 ◽  
Author(s):  
Laurynas NARUŠEVIČIUS
Keyword(s):  
Banking Sector ◽  
Short Term ◽  
Empirical Examination ◽  
Bank Profitability ◽  
Pooled Mean Group ◽  
Real Gdp ◽  
Income Statement ◽  
Main Determinants ◽  
The Relationship

The purpose of this paper is to investigate the relationship between profitability of the Lithuanian banking sector and its internal and external determinants. We use the panel error correc­tion model to assess long-term and short-term determinants of items from bank income statements (net interest income, net fee and commission income and operating expenses). The results of the pooled mean group estimator show that bank size and real GDP are the main determinants in the long-term. Meanwhile, empirical examination suggests various variables as short-term determinants of income statement items. The pooled mean group estimation technique and the analysis of sepa­rate income statement items enable us to have a better insight into the Lithuanian banking sector and determinants of its revenue and expenses.

ON THE CONSUMPTION/DISTRIBUTION THEOREM UNDER THE LONG-RUN GROWTH CRITERION SUBJECT TO A DRAWDOWN CONSTRAINT

2010 ◽  
Vol 13 (06) ◽  
pp. 931-957 ◽  
Author(s):  
MICHAEL J. KLASS ◽  
KRZYSZTOF NOWICKI
Keyword(s):  
Growth Rate ◽  
Short Term ◽  
Long Run ◽  
Time Period ◽  
Total Capital ◽  
Growth Criterion ◽  
Drawdown Constraint ◽  
Riskless Asset ◽  
Distribution Theorem

Consider any discrete time sequence of investment fortunes Fn which has a finite long-run growth rate [Formula: see text] when subject to the present value capital drawdown constraint Fne-rn ≥ λ* max 0≤k≤nFke-rk, where 0 ≤ λ* < 1, in the presence of a riskless asset affording a return of er dollars per time period per dollar invested. We show that money can be withdrawn for consumption from the invested capital without either reducing the long-run growth rate of such capital or violating the drawdown constraint for our capital sequence, while simultaneously increasing the amount of capital withdrawn for consumption at the identical long-term rate of V(r, λ*). We extend this result to an exponentially increasing number of consumption categories and discuss how additional yearly contributions can temporarily augment the total capital under management. In addition, we assess the short-term practicality of creating such an endowment/consumption/distribution program.

العلاقة التبادلية بين سعر الصرف وأسعار الأسهم دراسة تطبيقية في سوق اسطنبول للأوراق المالية للمدة 2005-2020

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
سعدالله ألنعيمي
Keyword(s):  
Exchange Rate ◽  
Stock Prices ◽  
Negative Impact ◽  
Reciprocal Relationship ◽  
Nominal Exchange Rate ◽  
Share Price ◽  
Theoretical Interpretation ◽  
Short Term ◽  
The Exchange Rate

The study aims to analyzing the reciprocal relationship between the nominal exchange rate of the Turkish lira versus the U.S. dollar and the stock prices of the companies listed on the Istanbul Stock Exchange (ISE) expressed in the general market index for the period from 2005 to 2020 with 192 monthly observations, based on the traditional theory and the theory of portfolio balance model in theoretical interpretation for that relationship, aiming to identify the effect of the exchange rate on stock prices, as well as to analyze the causal relationship between those variables and to identify which of them is the cause or which is the result, using the Autoregressive Distributed Lag (ARDL) model. The research found that the exchange rate has a positive effect on stock prices in the long term, despite the emergence of the negative impact in the short term, but the long-term relationship has corrected the course of the short-term relationship with a time period not exceeding one month, in addition to proving that this relationship takes one direction. From the exchange rate towards stock prices, that is, the exchange rate is the reason and stock prices are the result, therefore the results of this research helps investors to predict future trends of stock prices depending on the exchange rate changes, and it also enables the companies, especially those with foreign transactions, to manage price risks the exchange rate in order to avoid its negative impact on its share price, as it represents an obstacle to achieving its main goal of maximizing the share price

Sign in / Sign up

Export Citation Format

Share Document