The Ornstein-Uhlenbeck process to model the deposit volume of non-maturing assets in Colombia

The accurate comprehension of the risk drivers of different depository institutions is the key to their sustainable operation. In this paper, we analyze two stochastic approaches to model Non-Maturing Assets (NMAs) employing an Ornstein–Uhlenbeck process that can be used for the evaluation of the liquidity and interest risk of savings accounts in banks. We detail the models’ specifications, parameters, and simulation results. Furthermore, we examine the regular patterns, throughout the year, of the behavior of the volume of deposits into saving accounts in Colombia, in line with the results of other researchers in different countries. Finally, we found that a trend term should be incorporated into the model to capture the growth of the series.

Catalog of the Opilioacarida (Acari: Parasitiformes)

A catalog of the described Opilioacaridae species and their type depository institutions is presented. Opilioacaridae comprises 53 valid taxa (with 2 subspecies and 3 fossil species) distributed in 13 genera. The zoogeographical distribution, described life stages and years of description are also provided and discussed. Recent work on the American continent has resulted in a great diversity from these zoogeographical zones, but the family has a worldwide distribution. In addition, we move Neocarus ojastii Lehtinen, 1980 into Caribeacarus, i.e., Caribeacarus ojastii (Lehtinen, 1980) n. comb.

JUST HOW RISKY? COMPARATIVE INSTITUTIONAL RISKS OF MISSION-BASED DEPOSITORY INSTITUTIONS

We examine the relative institutional failure risks for three sets of bank depositories: Community Development Banking Institutions (CDBIs), Minority Depositories (MDIs) and what we term Non-Mission Depository Institutions (NMDIs). CDBIs have primary missions of community development and serving underserved populations; MDIs are typically led by minorities and serve minority populations (a single institution can be both a CDBI and an MDI, either or neither). In this analysis, NMDIs represent all other depository banks. Given their operation within lower-income and minority communities, MDIs and CDBIs appear, prima facie, to face greater institutional failure risks. We examine these risks across each set of institutions, ceteris paribus. Utilizing data from a number of sources, including the Reports of Condition and Income (call reports) for a substantial set of FDIC-insured banks in the United States, we apply a modified Capital, Assets, Management, Earnings and Liquidity model (CAMEL) to measure the predictive likelihood of failure. Recognizing that MDIs are not homogeneous, we also examine relative institutional failure across types of depositories. The results indicate that CDBIs and MDIs are systematically at lower failure risks and that there are differences across service designations.

Do Bond Investors Price Tail Risk Exposures of Financial Institutions?

We analyze whether bond investors price tail risk exposures of financial institutions using a comprehensive sample of bond issuances by U.S. financial institutions. Although primary bond yield spreads increase with an institution’s own tail risk (expected shortfall), systematic tail risk (marginal expected shortfall) of the institution doesn’t affect its yields. The relationship between yield spreads and tail risk is significantly weaker for depository institutions, large institutions, government-sponsored entities, politically-connected institutions, and in periods following large-scale bailouts of financial institutions. Overall, our results suggest that implicit bailout guarantees of financial institutions can exacerbate moral hazard in bond markets and weaken market discipline.

Postbellum Banking

Between passage of the National Banking Acts near the end of the US Civil War and the outbreak of the Great War and implementation of the Federal Reserve System in 1914, a large, vibrant financial system based on the gold standard and composed of markets and intermediaries supported the rapid growth and development of the American economy. Markets included over-the-counter markets and formal exchanges for financial securities, including bills of exchange (foreign currencies), cash (short-term debt), debt (corporate and government bonds), and equities (ownership shares in corporations), initial issuance of which increasingly fell to investment banks. Intermediaries included various types of insurers (marine, fire, and life, plus myriad specialists like accident and wind insurers) and true depository institutions, which included trust companies, mutual and stock savings banks, and state- and federally-chartered commercial banks. Nominal depository institutions also operated, and included building and loan associations and, eventually, credit unions and Morris Plan and other industrial banks. Non-depository lenders included finance and mortgage companies, provident loan societies, pawn brokers, and sundry other small loan brokers. Each type of “bank,” broadly construed, catered to customers differentiated by their credit characteristics, gender, race/ethnicity, country of birth, religion, and/or socioeconomic class, had distinctive balance sheets and loan application and other operating procedures, and reacted differently to the three major postbellum financial crises in 1873, 1892, and 1907.

United States

The U.S. authorities should preserve the considerable progress in the resiliency, recoverability, and resolvability of financial companies and insured depository institutions (IDIs), and intensify financial crisis preparedness efforts. After a decade of resolution planning, the development of the U.S. resolution regime is more advanced than in other major economies. This regime, together with the strong track record of the deposit insurance system (DIS) for banks and the federal banking agencies’ (FBAs) preparation for resolution, provide a strong foundation for crisis preparedness. Bank holding companies (BHCs) have integrated recovery and resolution planning (RRP) into business-as-usual (BAU) activities, increasing their resiliency; this process has deepened the FBAs’ understanding of the BHCs’ business models and RRP capabilities. The FBAs should continue their own annual resolution planning and mitigate the recent changes that reduced the BHCs’ RRP. These efforts should be complemented by further interagency crisis preparedness, including particularly with the U.S. Department of the Treasury (UST), given its essential role in critical aspects of crisis responses. Finally, further refinements relating to cross-border resolution also deserve attention.

DEPOSITORY INSTITUTIONS AND SUSTAINABLE AGRICULTURE IN NIGERIA

Aligning with Goal two of Sustainable Development Goals (SDGs2) to accomplish zero hunger by the year 2030. This research dives deeper into how Agriculture can be sustained to actualize SDGs2 through the assistance of depository Institutions. The results show that deposit money bank loans, deposit money bank loans rate, exchange rate, government expenditure and agricultural credit sector fund have pose positive effect on agricultural output, only the duo of exchange rate and agricultural credit sector fund indicate a significant impact on agricultural output at the 5% level of significance while deposit money bank loans have a slightly positive significant effect on agricultural output at approximately 10% level of significance. This implies that across the period under investigation, deposit money bank loans, exchange rate and agricultural sector credit fund impose significant and positive contribution to agricultural output.

Crisis en las entidades de crédito españolas: Un estudio mediante análisis discriminante

The aim of this paper is to present an estimated model for banking classification applying multivariate linear discriminant analysis, preceded by a brief review of recent Spanish crisis. An estimation sample and a validation sample are used, each of them with Spanish depository institutions solvent and another financial distressed. The data refers to the years 2008 and 2009, a prior fiscal year to the respective situations of failure. The empirical results achieved are statistically significant. They confirm some of the conclusions from previous studies and seem to be useful to design early-warning systems in the banking sector.