scholarly journals Public Sector Balance Sheet Strength and the Macro Economy

2019 ◽  
Vol 19 (170) ◽  
Author(s):  
Seyed Reza Yousefi
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Financial Markets ◽  
Balance Sheet ◽  
Balance Sheets ◽  
Net Worth ◽  
Sovereign Bonds ◽  
Economic Downturns ◽  
Macroeconomic Implications

This paper introduces concepts of public sector balance sheet (PSBS) strength, taking into account different aspects of what governments own in addition to what they owe. It develops measures of PSBS strength and investigates their macroeconomic implications. Empirical estimations show that in their pricing of sovereign bonds, financial markets account for government assets and net worth in addition to their liabilities. Furthermore, economies with stronger public sector balance sheets experience shallower recessions and recover faster in the aftermath of economic downturns. This faster return to growth can be explained by the greater space for countercyclical fiscal policy in countries with stronger balance sheets.

scholarly journals France

2019 ◽  
Vol 19 (321) ◽  
Author(s):  
Keyword(s):  
At Risk ◽  
Global Financial Crisis ◽  
Housing Prices ◽  
Balance Sheet ◽  
International Comparisons ◽  
Stress Tests ◽  
Balance Sheets ◽  
Net Worth ◽  
Near Term ◽  
The Global Financial Crisis

Corporates. The debt of French nonfinancial corporations has been on a rising trend in percent of GDP, especially in recent years, in contrast what is observed in peer European countries. This trend on non-consolidated data is mostly accounted for by bond issuances and loans among nonfinancial corporations (NFCs) while bank credit to NFCs has also grown but at a slower pace. While, across countries, French firms do not appear to be more indebted on average or to be more likely to have their debt-at-risk than their peers, there exists a tail of firms with debt-at-risk that has remained fatter than before the global financial crisis, despite the low interest rate environment. Moreover, some banks may have somewhat significant exposures to individual large indebted corporates. Stress tests show that under downside macrofinancial scenarios, corporate debt may increase significantly (up to around 11 percent of GDP in the broad sample of firms) but would remain broadly manageable. However, banks’ large exposures to corporates with debt at risk would increase significantly under the adverse scenario and in aggregate would amount to a significant share of capital. • Households. There is no clear evidence of vulnerabilities in households’ balance sheets at an aggregated level. Households have continued to build their financial net worth by accumulating financial assets even faster than debt. Their saving rate is healthy, and they appear to invest their inflows primarily in safe assets. Household debt is not high in international comparisons. However, some households—lower income, younger—may have experienced a deterioration of their balance sheet along certain dimensions. Such potential pockets of vulnerabilities should be further studied when data are available. The residential real market appears to be broadly aligned with its supply-side and demand-side fundamentals, and there are limited near-term downside risks to housing prices. However, there is a need to remain prudent, because the likelihood of adverse price developments is sensitive to negative shocks to macrofinancial conditions.

scholarly journals Georgia

2020 ◽  
Vol 20 (223) ◽  
Author(s):  
Keyword(s):  
Public Sector ◽  
Local Governments ◽  
Central Government ◽  
Balance Sheet ◽  
The State ◽  
Net Worth ◽  
State Owned Enterprise ◽  
National Bank ◽  
The Government

Georgia’s public sector balance sheet (PSBS) is in relatively healthy shape, with assets exceeding liabilities, and is comparatively lean. Looking across all entities that the government controls, including the central government, local governments, the State-Owned Enterprise (SOE) sector and the National Bank of Georgia (NBG), total assets are worth 149 percent of GDP, made up of cash, loans, infrastructure, land and productive SOE assets. Liabilities are worth 81 percent of GDP, primarily comprising loans and debt of the government and SOEs. This leaves positive net worth of 68 percent of GDP, putting it in the top third of countries in the IMF’s database.

scholarly journals Empirical Verification of the Existence and Functioning of Internal Controls in the Preparation of a Consolidated Property Balance Sheet for the State and Municipalities in Slovenia

2014 ◽  
Vol 9 (4) ◽  
Author(s):  
Jasna Ida Zafred
Keyword(s):  
Public Sector ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Opinion Poll ◽  
International Accounting Standards ◽  
Consolidation Process ◽  
Balance Sheets ◽  
Controlling System ◽  
Information And Communication

The consolidation process, where a group of enterprises is presented as a single one, is prescribed by international accounting standards, and in accordance with them it has been taken over by Slovenian accounting standards and International Public Sector Accounting Standards. It may be conducted after prior preparation of basic financial statements of the controlling and the controlled enterprise. From the professional directives derives one of the demands that between consolidated standings there must not be any so-called "quasi-differences" due to unregulated accounting. In spite of the fact that Slovenian subjects of the public sector do not prepare financial statements in a way as determined by the standards, consolidation is being carried out, but for certain data of the balance sheets and based on a special regulation. This regulation allows the appearance of differences between the budgets users what influences the standing of the general state fund. In the research, by the method of random sampling by the use of an opinion poll according to the components of the COSO model, we empirically verified the effectiveness of the internal controlling system in the preparation of original documents of the balance sheets in the Slovenian public sector. We found out that formally differences are allowed, even quasi-differences, due to which reliability of a consolidation financial statement is questionable. Verification of the component of the controlling environment has shown for example that legal limitation periods for the confirmation of open positions are determined too early, and the proceedings are not agreed upon exactly enough when there is an imbalance between receivables and liabilities in the consolidation. In situations of short-term receivables and liabilities towards budget users in 31.12., there are standings that may lead to the risk of appearance of differences in the consolidation and for a string of accounts we found in the component of the controlling activity that budget users did not even the standings successfully or did not even balance the standings in 31.12., due to what differences appeared. This was the cause that measures were determined by accounting offices for the avoiding of an appearance of differences. The question of the component of information and communication was answered by accountants who wish they had more education, and the superiors who could use the information from financial statements better for their decision-making. Their software is still not safe enough, as in some cases the database of financial data is accessed. The results in the component of following showed that in several places audits of the procedure of preparation of property balance sheets were not performed.

scholarly journals Japan's Public Sector Balance Sheet

2019 ◽  
Vol 19 (212) ◽  
Author(s):  
Yugo Koshima
Keyword(s):  
Public Sector ◽  
Interest Rates ◽  
Public Debt ◽  
Population Aging ◽  
Balance Sheet ◽  
Debt Management ◽  
Net Worth ◽  
The Public ◽  
Low Interest Rates ◽  
High Level

This paper compiles and reviews the evolution of Japan’s Public Sector Balance Sheet (PSBS). In the past, large crossholdings of assets and liabilities within the public sector played a role in sustaining a high level of public debt and low interest rates. The Fiscal Investment and Loan Fund (FILF) channeled all postal deposits and pension savings to financing of public sector borrowing. After the FILF refrom in 2000, however, the Post Bank and pension funds shifted their assets to the portfolio investments and are seeking to maximize risk-adjusted returns. This has changed the implications of crossholdings for public debt management. In the future, population aging is expected to add more pressures on the PSBS, which already saw a considerable decrease of net worth over the last three decades.

scholarly journals Public Wealth in the United States

2019 ◽  
Vol 19 (139) ◽  
pp. 1
Author(s):  
Fabien Gonguet ◽  
Klaus-Peter Hellwig
Keyword(s):  
World War Ii ◽  
Public Sector ◽  
Global Financial Crisis ◽  
Stress Test ◽  
Balance Sheet ◽  
The United States ◽  
Net Worth ◽  
The Us ◽  
History Of ◽  
The Global Financial Crisis

We analyze the US public sector balance sheet and project it forward under the assumption that current policies remain in place. We first document the history of the balance sheet and its components since World War II, with a detailed account of its evolution during and after the global financial crisis. While, based on assets and liabilities alone, public sector net worth is negative, additional challenges arise from commitments to future spending implied by current legislation and demographic trends. To quantify the risks to the balance sheet, we then apply the macroeconomic scenarios from the Federal Reserve’s bank stress test to the public sector balance sheet.

Cover Me: The Economy Is on Fire (The German Pfandbrief)

2010 ◽  
Vol 11 (12) ◽  
pp. 1323-1346 ◽  
Author(s):  
Patrick Quirk
Keyword(s):  
Financial Markets ◽  
Global Financial Crisis ◽  
Hedge Fund ◽  
Balance Sheet ◽  
Third Party ◽  
Executive Board ◽  
Balance Sheets ◽  
European Central ◽  
Mortgage Backed Securities ◽  
The Global Financial Crisis

This article examines the German Pfandbrief (“covered bond”) as an example of the banking practice of “originate to hold” by which mortgage debts are retained on the balance sheet of the originator and not sold on to a third party such as an investor or hedge fund. The global financial crisis (GFC) of 2008-2009 will be forever linked to the process known as “securitization” and the distribution of mortgage-backed securities throughout willing and later remorseful financial markets. But this is not the only model. As a member of the Executive Board of the European Central Bank (ECB) noted in June of 2008, “it may be worth recalling that this [originate to distribute model] is not the way banks have historically done business. Under the traditional—perhaps, I should say secular—‘originate to hold’ business model, banks extend loans to firms and households and hold them in their balance sheets until they mature or are paid off.”

ANALISA PERBANDINGAN LAPORAN KEUANGAN DAN RASIO KEUANGAN SEBAGAI ALAT UKUR KINERJA KEUANGAN PADA KOPERASI KARYAWAN SUCOFINDO (KOPERASI SUCOFINDO JAYA) TAHUN 2009 – 2011

2019 ◽  
Vol 9 (2) ◽  
pp. 35
Author(s):  
Sri Marti Pramudena
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Fiscal Year ◽  
Percentage Increase ◽  
Net Worth ◽  
Average Value ◽  
Financial Position ◽  
Profitability Analysis ◽  
Equity Ratio ◽  
The Cost

This study aims to determine the financial position and financial performance Cooperative Sucofindo Jaya (KOPSUCOFINDO JAYA) from fiscal year 2009-2011 through a comparative analysis / comparisons and ratio analysis. From the research, the authors obtained a picture that results of the financial position and financial performance of KOPSUCOFINDO JAYA as follows: (1) To Horizontal Analysis of the Balance Sheet shows the overall unfavorable developments as the rise of short-term debt experienced a greater percentage increase than the increase in current assets (2) For Horizontal Analysis of the SHU, SHU in 2010 an increase of 125.38% compared to 2009 and in 2011 increased by 282.47% compared to 2009, but this increase was not followed by a reduction in the burden of cost of goods, especially business and this increase was obtained from the contribution percentage increase in other income. (3) For Vertical Analysis of the Balance Sheet shows that in terms of assets, current assets are assets that make up the largest component but also cause considerable investment value embedded in current assets and also showed asset turnover, receivables turnover and working capital is very low under 1 times. (4) For the SHU Vertical analysis shows that income JAYA KOPSUCOFINDO more than 85% absorbed in the Cost of Goods. (5) For liquidity analysis showed that highly liquid KOPSUCOFINDO JAYA obtain an average value above 400%. (6) For solvency analysis shows that the performance is not good / not solvable because the results of the analysis LITA average of above 95%, Total Debt to Equity Ratio in the top 2.000%, and Net Worth Debt Ratio to average below 4%. (7) For activity ratios indicate that the performance is not good for Turnover of Assets value of 1 times. (8) For the rentability analysis KOPSUCOFINDO JAYA show results for ROA of 0.86% (2009), 1.31% (2010), 1.18% (2011), ROE in 2009 is 14.81%, 26.43% in 2010 and 2011 amounted to 31.11%, for the ROI of 0.56% in 2009, in 2010 was 0.96% and by 0.93% in 2011. (9) For the analysis of profitability, for the analysis of GPM in 2009 amounted to 1.49%, in 2010 of 2.31% and 3.92% in 2011. As for the analysis of NPM in 2009 amounted to 0.97%, in 2010 by 1.70% and by 3.10% in 2011. Keywords:  Cooperative Financial Performance, horizontal analysis, vertical analysis, Analysis of Liquidity, Solvency Analysis, Activity Analysis, Profitability Analysis, profitability analysis

Corporate Social Responsibility Practices in Indian Petroleum Companies: A Case Study of Selected PSUs

Think India ◽  
2018 ◽  
Vol 21 (3) ◽  
pp. 13-18
Author(s):  
Abhijit Ranjan Das ◽  
Subhadeep Mukherjee
Keyword(s):  
Corporate Social Responsibility ◽  
Public Sector ◽  
Social Responsibility ◽  
Business Environment ◽  
Annual Reports ◽  
Net Worth ◽  
Net Profit ◽  
Petroleum Companies ◽  
Corporate Social

Corporate Social Responsibility (CSR) is not a very new concept, it is an old concept. Earlier, in India it was optional to the company that they may contribute voluntarily towards CSR but after the Companies Act 2013, it was formally introduced in the business environment and was made mandatory for those companies whose net worth and profit cross a threshold limit. They should contribute 2% of the average net profit of just preceding three years profit. This paper primarily focuses on CSR practices of some selected public sector petroleum companies in India. The study has been conducted based on the Annual Reports of seven selected public sector companies. Five years of data on CSR spending from 2009–10 to 2014–15 were examined. Moreover, the pattern of expenses was also examined. Since petroleum companies are giants of the India economy and contribute significantly towards the Gross Domestic Product (GDP) of our country. Thus it is necessary to look into how these companies are contributing towards CSR. An attempt has been made to examine the early impact of Section 135 of the Companies Act.

Jones Enterprises Real Estate Investment Trust: Comparing U.S. and Canadian Acquisition Accounting, Balance Sheet and Security Commission Reporting, and Initial Public Offering Location

2018 ◽  
Vol 33 (2) ◽  
pp. 35-42
Author(s):  
Natalie Tatiana Churyk ◽  
Alan Reinstein ◽  
Lance Smith
Keyword(s):  
Real Estate ◽  
Initial Public Offering ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Students ◽  
Real Estate Investment ◽  
Generally Accepted Accounting Principles ◽  
Balance Sheets ◽  
Advantages And Disadvantages ◽  
Public Offering

ABSTRACT Based on a Big 4 real estate audit partner's client, this case introduces graduate research and advanced financial accounting students to acquisition accounting under U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), provides a perspective on real estate investment trusts (REITs), and requires analyzing a U.S. versus Canadian (Ontario) initial public offering (IPO). Students list U.S. and Canadian advantages and disadvantages of REITs, record a portfolio purchase, prepare U.S. GAAP and IFRS balance sheets in order to grasp major REIT reporting differences, contrast the key provisions between U.S. and Canadian (Ontario) securities commissions' IPO reporting, and consider ongoing securities commissions' reporting options. Finally, students will recommend whether the IPO should be issued in the U.S. or Canada. Completing the case helps students: (1) grasp U.S. GAAP and IFRS acquisition accounting methods and different REIT presentations; and (2) recognize that the country selected for the IPO depends upon the issuer's circumstances and preferences.

The non-linear effects of the Fed asset purchases

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Alessio Anzuini
Keyword(s):  
Financial Markets ◽  
Large Scale ◽  
Balance Sheet ◽  
Monetary Economics ◽  
American Economic Review ◽  
Vector Autoregressive ◽  
Portfolio Balance ◽  
State Dependent ◽  
Linear Effects ◽  
Asset Purchases

Abstract The Federal Reserve responded to the great financial crisis deploying new monetary policy tools, the most notable of which being the expansion of its balance sheet. In a recent paper, Weale, M., and T. Wieladek. 2016. “What Are the Macroeconomic Effects of Asset Purchases?” Journal of Monetary Economics 79 (C): 81–93 show that the asset purchases were effective in stimulating economic activity as well as inflation and asset prices. Here I show that their results are state dependent: large scale asset purchase are effective only when financial markets are impaired. Financial markets are under stress when the effective risk-bearing capacity of the financial sector is drastically reduced, i.e. when the excess bond premium (EBP) of Gilchrist, S., and E. Zakrajšek. 2012. “Credit Spreads and Business Cycle Fluctuations.” The American Economic Review 102 (4): 1692–72 exceed a certain threshold. Using an estimated threshold vector autoregressive model conditional on the EBP regime, I show that an increase in the balance sheet has expansionary effects on GDP and inflation when EBP is high, but not when it is low (as its effects become mostly insignificant). I argue that the high EBP can be interpreted as a proxy of market dis-functioning so that only when this channel of transmission is on, the unconventional policy is particularly effective. This suggests that models of transmission of unconventional policies, based on asset purchases, should focus also on the market functioning channel and not only on the portfolio balance one.

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