[PDF] Monetary Policy And Risk Management In Financial Globalization eBook

Author : Georgios I. Zekos
Publisher : Nova Science Publishers
Page : 0 pages
File Size : 33,19 MB
Release : 2015
Category : Globalization
ISBN : 9781634828956

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Globalization is a complex, forceful, legal and social process that takes place within an integrated whole with no regard for geographical boundaries. Financial globalization is criticized for consequential increases in economic volatility and disruptions to monetary policy autonomy. Globalization increases the vulnerability of economies to shock while restraining the apparatus that central banks and policy authorities have for dealing with said shocks engendered at home and abroad. Globalization and corporate governance interact to deal with governance issues arising from the globalization of business. Corporate governance is, to a great extent, a set of means through which outside investors protect themselves against expropriation by insiders. Risk management is at the centre of all financial actions. Moreover, risk management is a two-step course: firstly, it is necessary to uncover what risks exist in an investment and then deal with those risks in a way best-suited to a corporation's investment objectives. Financial markets have been liberalized around the globe. Banks advance their capacity to administer credit risk function with greater leverage by lending more of their assets to risky borrowers. In a market-based financial system, banking and capital market advancements are undividable and funding circumstances are tied to fluctuations in the control of market-based financial intermediaries. Risk management has become a momentous element of company management after the modern financial crisis.

Author : Mr.Omotunde E. G. Johnson
Publisher : International Monetary Fund
Page : 576 pages
File Size : 38,2 MB
Release : 2002-04-29
Category : Business & Economics
ISBN : 9781589060128

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This book covers financial sector stability issues in the following areas: risk management and governance in financial institutions; financial crises and contagion; domestic monetary and financial policies; and international cooperation. The papers were presented at the IMF’s eighth Central Banking Seminar by authors from academia, investment banks, government, and international institutions. The papers discuss such subjects as bank soundness, systemic bank restructuring, and the safety and efficiency of systemically important payment systems and their interaction with the macroeconomic environment.

Author : Douglas D Evanoff
Publisher : World Scientific
Page : 455 pages
File Size : 45,38 MB
Release : 2009-01-05
Category : Business & Economics
ISBN : 9814470317

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The impact of globalization of financial markets is a highly debated topic, particularly in recent months when the issue of globalization and contagion of financial distress has become a focus of intense policy debate. The papers in this volume provide an up-to-date overview of the key issues in this debate. While most of the contributions were prepared after the initial outbreak of the current global turmoil and financial crisis, they identify the relative strengths of the risk diversification and risk transmission processes and examine the empirical evidence to date. The book considers the relative roles of banks, nonbank financial institutions and capital markets in both risk diversification and risk transmission. It then evaluates the current status of crisis resolution in a global context, and speculates where to go from here in terms of understanding, resolution, prevention and public policy.

Author : Hasan Dincer
Publisher : Springer Science & Business Media
Page : 275 pages
File Size : 26,14 MB
Release : 2013-11-23
Category : Business & Economics
ISBN : 3319011251

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This peer-reviewed volume from the Society for the Study of Business and Finance, discusses current issues in globalization and financial system from an international political and economic perspective. Contemporary instruments and actors in the global financial system are specially analyzed and the discussion of managerial and financial issues of the global financial strategies offers novelty to readers and researchers in the field.

Author : Mr.Ayhan Kose
Publisher : International Monetary Fund
Page : 68 pages
File Size : 49,37 MB
Release : 2003-09-03
Category : Business & Economics
ISBN : 9781589062214

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This study provides a candid, systematic, and critical review of recent evidence on this complex subject. Based on a review of the literature and some new empirical evidence, it finds that (1) in spite of an apparently strong theoretical presumption, it is difficult to detect a strong and robust causal relationship between financial integration and economic growth; (2) contrary to theoretical predictions, financial integration appears to be associated with increases in consumption volatility (both in absolute terms and relative to income volatility) in many developing countries; and (3) there appear to be threshold effects in both of these relationships, which may be related to absorptive capacity. Some recent evidence suggests that sound macroeconomic frameworks and, in particular, good governance are both quantitatively and qualitatively important in affecting developing countries’ experiences with financial globalization.

Author : Unurjargal Nyambuu
Publisher : John Wiley & Sons
Page : 476 pages
File Size : 15,80 MB
Release : 2018-01-16
Category : Business & Economics
ISBN : 1119252652

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An in-depth guide to global and risk finance based on financial models and data-based issues that confront global financial managers. Globalization, Gating, and Risk Finance offers perspectives on global risk finance in a world with economies in transition. Developed from lectures and research projects investigating the consequences of globalization and strategic approaches to fundamental economics and finance, it provides an approach based on financial models and data; it includes many case-study problems. The book departs from the traditional macroeconomic and financial approaches to global and strategic risk finance, where economic power and geopolitical issues are intermingled to create complex and forward-looking financial systems. Chapter coverage includes: Globalization: Economies in Collision; Data, Measurements, and Global Finance; Global Finance: Utility, Financial Consumption, and Asset Pricing; Macroeconomics, Foreign Exchange, and Global Finance; Foreign Exchange Models and Prices; Asia: Financial Environment and Risks; Financial Currency Pricing, Swaps, Derivatives, and Complete Markets; Credit Risk and International Debt; Globalization and Trade: A Changing World; and Compliance and Financial Regulation. Provides a framework for global financial and inclusive models, some of which are not commonly covered in other books. Considers risk management, utility, and utility-based multi-agent financial theories. Presents a theoretical framework to assist with a variety of problems ranging from derivatives and FX pricing to bond default to trade and strategic regulation. Provides detailed explanations and mathematical proofs to aid the readers’ understanding. Globalization, Gating, and Risk Finance is appropriate as a text for graduate students of global finance, general finance, financial engineering, and international economics, and for practitioners.

Author : Barbara Meller
Publisher : Tectum Wissenschaftsverlag
Page : 123 pages
File Size : 10,32 MB
Release : 2011-11-01
Category : Business & Economics
ISBN : 3828852173

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In her doctoral thesis, Barbara Meller compiles her work on applied econometrics focusing on policy decision making in financial and monetary economics.In the first part of the book, the effect of financial globalization on the volatility of economic growth is empirically examined in a large sample of countries. The analysis provides clear criteria which countries should fulfill in order to benefit from financial globalization in terms of reduced volatility. In general, financial globalization is more favorable for countries with a higher ability to repay debt. The focus of the second part of the book is inflation persistence which is measured using long-memory techniques. As inflation persistence is one of the most crucial parameters affecting monetary policy, the analyses have important implications for the evaluation and conduct of monetary policy. In particular, the impact of the formation of the European Central Bank on inflation persistence is analyzed using panel fractional integration estimation. It is concluded that inflation persistence has decreased probably as a result of the more effective monetary policy of the ECB. Moreover, a new test to find a break in long-run persistence at unknown timing is introduced. Applied to US inflation rate, the test indicates that persistence has increased in 1973 and decreased in 1980.

Author : O. Hieronymi
Publisher : Springer
Page : 337 pages
File Size : 39,18 MB
Release : 2009-11-04
Category : Business & Economics
ISBN : 0230251064

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The book argues that a successful monetary and banking reform requires: a rollback of monetary nationalism and return to monetary internationalism; trust in the banking system with its basic functions restored; a balance between competition and solidarity in order to assure political and social acceptance of globalization.

Author : Tobias Adrian
Publisher : International Monetary Fund
Page : 53 pages
File Size : 29,22 MB
Release : 2018-08-01
Category : Business & Economics
ISBN : 1484343913

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The evolution of risk management has resulted from the interplay of financial crises, risk management practices, and regulatory actions. In the 1970s, research lay the intellectual foundations for the risk management practices that were systematically implemented in the 1980s as bond trading revolutionized Wall Street. Quants developed dynamic hedging, Value-at-Risk, and credit risk models based on the insights of financial economics. In parallel, the Basel I framework created a level playing field among banks across countries. Following the 1987 stock market crash, the near failure of Salomon Brothers, and the failure of Drexel Burnham Lambert, in 1996 the Basel Committee on Banking Supervision published the Market Risk Amendment to the Basel I Capital Accord; the amendment went into effect in 1998. It led to a migration of bank risk management practices toward market risk regulations. The framework was further developed in the Basel II Accord, which, however, from the very beginning, was labeled as being procyclical due to the reliance of capital requirements on contemporaneous volatility estimates. Indeed, the failure to measure and manage risk adequately can be viewed as a key contributor to the 2008 global financial crisis. Subsequent innovations in risk management practices have been dominated by regulatory innovations, including capital and liquidity stress testing, macroprudential surcharges, resolution regimes, and countercyclical capital requirements.

Author : Mr.Giovanni Dell'Ariccia
Publisher : International Monetary Fund
Page : 41 pages
File Size : 43,78 MB
Release : 2013-06-06
Category : Business & Economics
ISBN : 1484381130

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We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data on the internal ratings of U.S. banks on loans to businesses over the period 1997 to 2011 from the Federal Reserve’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank’s loan portfolio) is negatively associated with increases in short-term policy interest rates. This relationship is less pronounced for banks with relatively low capital or during periods when banks’ capital erodes, such as episodes of financial and economic distress. These results contribute to the ongoing debate on the role of monetary policy in financial stability and suggest that monetary policy has a bearing on the riskiness of banks and financial stability more generally.