Private Equity and Financial Stability: Evidence from Failed Bank Resolution in the Crisis

In the context of the protection of individual investors of private investment funds in South Korea, this study examines the current regulation of private placements from legal and economic perspectives. It compares Rule 506 of Regulation D in the United States with the similar regulation of South Korea. The most distinguishing feature of South Korea’s regulation is that any individual who can evidence a certain investment amount, regardless of accreditation or sophistication, is eligible to participate in private equity funds, which has recently resulted in “incomplete sales” problems in Korea. To conform to the definition of private equity, it is best to abolish the threshold criteria of minimum investment amount. Otherwise, the “sales” of private equity via commercial banks and central institutions for financial stability must at least be banned so that individual investors do not confuse private placement with public offering. In return, public advertisement can be permitted for private equity funds with only accredited investors and sophisticated investors. Public fund investment in private equities are de facto private equities; they are inappropriate for individuals, who may be confused with private funds and public funds. As such, they need to be limited.

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Deposit Protection and Bank Resolution

10.1093/law/9780198743057.001.0001 ◽

2015 ◽

Author(s):

Kleftouri Nikoletta

Keyword(s):

Financial Stability ◽

Deposit Insurance ◽

Global Financial Crisis ◽

International Standards ◽

Banking Union ◽

European Banking Union ◽

Bank Resolution ◽

Protection Systems ◽

The Uk ◽

The Impact

The 2007–08 global financial crisis proved that the interests of bank depositors are inadequately protected. Although a vast expansion in deposit protection systems around the world followed, our understanding of the impact of those systems and their interaction with bank resolution is still in its infancy. The focus of bank resolution studies has been on the largest systemically important banks, which have wholesale creditors who would be bailed in, leaving retail depositors untouched. However, many banks rely mostly on deposits for financing, and the number of banks of this form is expected to increase. This book aims to explain and provide current material analysis of deposit protection and bank resolution regimes. The analysis is based on an examination of the traditional rationales for creating deposit insurance and bank resolution, and a specific study of the UK, EU, and US legal frameworks. It aims to offer an analysis of this topic and to cover all relevant regulations, from its origins to its most recent developments, in a systematic and thorough way. It approaches the much-desired objective of financial stability from a different angle: that of depositor protection. This book comprises ten chapters, analysing: the rationales for creating a deposit protection system; the limitations of deposit protection systems; the European deposit insurance framework; the European banking union; recent cases on deposit guarantee schemes; international standards on deposit insurance; the UK deposit insurance framework; international and European regulatory developments on bank resolution; the UK Special Resolution Regime; and the US paradigm.

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THE TRANSNATIONAL GOVERNANCE OF BANK RESOLUTION AND THE TREATMENT OF NATIONAL REGULATORY VARIATION IN THE EU

The Cambridge Law Journal ◽

10.1017/s0008197321000106 ◽

2021 ◽

Vol 80 (1) ◽

pp. 74-100

Author(s):

Andromachi Georgosouli

Keyword(s):

Financial Stability ◽

Best Practice ◽

Eu Law ◽

Transnational Governance ◽

Local Conditions ◽

Implementation Evaluation ◽

Policy Debates ◽

Bank Resolution ◽

Implementation Stage ◽

The Eu

AbstractThe transnational governance of bank resolution must be well-designed to provide credible solutions to financial crisis management. While at policy level, there is a broad consensus on best practice, the implementation stage often leaves something to be desired. Focusing on the implementation of the relevant Financial Stability Board (FSB) recommendations in the EU, this article explores this issue and proposes certain reforms. It argues for closer EU control and scrutiny over national decision-making without, however advocating a “one-size-fits-all” approach. Its main insight is that the promotion of transnational convergence need not come at the expense of the distinctive attentiveness of EU law to local conditions nor indeed involve a massive shake-up of the existing EU architecture. Its aim is to contribute to scholarly and public policy debates in this field in anticipation of the EU response to the final conclusions of the post-implementation evaluation of the FSB recommendations, which is currently in progress.

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Hospital Ownership and Financial Stability: A Matched Case Comparison of a Nonprofit Health System and a Private Equity–Owned Health System

10.1108/s1474-823120210000020007 ◽

2021 ◽

pp. 173-220

Author(s):

Aimee La France ◽

Rosemary Batt ◽

Eileen Appelbaum

Keyword(s):

Health System ◽

Financial Stability ◽

Private Equity ◽

Hospital Ownership ◽

Case Comparison ◽

Matched Case

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Singapore

IMF Staff Country Reports ◽

10.5089/9781498325837.002 ◽

2019 ◽

Vol 19 (226) ◽

pp. 1

Author(s):

Keyword(s):

Best Practices ◽

Financial Institutions ◽

Financial Stability ◽

Foreign Banks ◽

Holding Companies ◽

Bank Resolution ◽

Enhanced Resolution ◽

Public Resources ◽

Ministry Of Finance ◽

Systemically Important Banks

The Monetary Authority of Singapore (MAS) is the designated resolution authority for financial institutions, including holding companies and domestic branches of foreign banks. In this role, MAS determines if the conditions for entry into resolution are met and designs and implements the resolution strategy. The Ministry of Finance (MOF) plays only a limited role in the technical decisions concerning bank resolution, intervening when the use of public resources is contemplated. In 2017, the passage of amendments to the MAS Act strengthened the resolution framework. It introduced enhanced resolution powers and strengthened the framework for recovery and resolution of domestic systemically important banks (D-SIBs). These powers are broadly consistent with international best practices as outlined in the Financial Stability Boards (FSB) Key Attributes for Effective Resolution of Financial Institutions. The powers are generally applicable to all financial institutions.

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Risk management of the investment marketing on diversified enterprises

Economics ecology socium ◽

10.31520/2616-7107/2019.3.4-5 ◽

2019 ◽

Vol 3 (4) ◽

pp. 35-44

Author(s):

Oleksandr Kalinin ◽

Viktoriya Gonchar ◽

Žaneta Simanavičienė

Keyword(s):

Risk Management ◽

Financial Management ◽

Financial Stability ◽

Private Equity ◽

Management Program ◽

Marketing Management ◽

Investment Efficiency ◽

Conservative Strategy ◽

Marketing Activities ◽

Investment Capital

Introduction. In modern economic environment, obtaining financial stability in the long run is one of the conditions for competitive advantages. The condition for achieving stability is the improvement of the risk management program, which is based on a balanced system of formation and use of available resources. Aim and tasks. The aim of this paper is to explore the trends of risk management of modern investors in the selection of objects for placement of capital and formation a strategy of marketing management for the diversified businesses. The tasks of the paper are to research the theoretical aspects of risk management and planning; to analyze the risk management on the diversified companies; to develop solutions to improve the system of marketing management on the diversified companies in the context of risk management. Results. Investment marketing activities are one of the main ways to develop and increase the competitiveness of the economy and the individual companies operating in it. Marketing activities allow you to attract investments that support the implementation of the company's development strategy, increase its assets, develop innovative products, enter promising markets, ensure development in a highly competitive environment and stimulate the company's capitalization in the future. The dynamic growth of a diversified company is largely possible through diversification of investment capital and raising investment funds through the placement of shares in the financial market. An increase in the investment efficiency of a diversified company is possible only if there is a system of control over the economic activities of its individual business lines, otherwise it is highly likely that irrational investment decisions will be made and investment capital eroded due to the lack of proper control over its planning, placement and subsequent management. Conclusions. Modern diversified enterprises have to show investors that firms are in the sphere of financial management. This will help with the main risk of diversification – undervaluing by fund market. Modern conglomerates on the one hand should be present in the most popular industries among investors like technologies or bioengineering but on the other hand they have to concentrate its activity on the principles of private equity or leveraged buyout firms. It means that firms have to actively use loan capital after the recession and use their equity as more conservative as possible. It will allow getting financial results as good as private equity funds but for the public conglomerates it will allow to keep present investors and to attract new ones with conservative strategy.

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FINANCIAL SUSTAINABILITY OF THE ENTERPRISE: PROBLEMS AND THEIR SOLUTIONS ON THE EXAMPLE OF THE CONSTRUCTION COMPANY

Young Scientist ◽

10.32839/2304-5809/2020-10-86-10 ◽

2020 ◽

Vol 10 (86) ◽

Author(s):

Tetiana Momot ◽

◽

Andrii Lub ◽

Keyword(s):

Financial Stability ◽

Private Equity ◽

Negative Impact ◽

Financial Institution ◽

Rapid Development ◽

The State ◽

Managerial Decision ◽

Strategic Development ◽

Construction Company ◽

The Right

The lack of predictability of the strategic keys in the minds of unlimited deficits in the basic resources and the amount of pita has become a reality for a large number of companies. The financial stability in the market economy is of great importance, so that it does not play into the hands of the current and future sub-products of the state, which are in dispute with the crisis of the financial markets. The financial institution shall take advantage of the fact that it cooperates with its counterparties, which, by virtue of their belief, have been redeveloped on the basis of pre-engineering cooperation, can put their minds at ease; the ability to withdraw loans from commercial banks; and the ability to make private equity investments for potential investors. At the stage of the application of the investment partnership "Trest Zhytlobud-1" bull held a competition of financial and social activities through the analogy of financial zeal and the rapid development of cooperation. At the state of understanding of the financial stability of the enterprise, there was conducted a review of the financial stability of the enterprise as the basis of its life. The financial stability is an important information center for evidence and to take an optimal managerial decision, which will enable the company to achieve its objectives. The financial situation in the workplace is represented by the leading activity and activity of the company's activities in the future of its financial and economic activity. Absolute and significant exhibitors of the financial instability are nicknamed in the regional and analitical work of the company, the very same period of bull analogy is respected in the state, Moreover, the right reasoning and the right pathway to the visa is of particular importance for the management of the financial sector of life's behavior in the minds of crises and situations with the pandemic in the world. It is important to adopt the right management decisions on the basis of which the strategic development of behavioral entrepreneurship will take shape, and to develop respect for other officials, who will directly contribute to the formation of the financial stability. The aim is to ensure that the company's activities are carried out in a reliable manner and that the mill's financial stability is maintained and the negative impact of macro- and micro-economical factors is minimized.

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