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Book part
Publication date: 8 November 2010

Pierre-Richard Agénor and Luiz A. Pereira da Silva

Purpose – To discuss, from the perspective of developing countries, recent proposals for reforming international standards for bank capital requirements.Methodology/approach  

Abstract

Purpose – To discuss, from the perspective of developing countries, recent proposals for reforming international standards for bank capital requirements.

Methodology/approach – After evaluating, from the viewpoint of developing countries, the effectiveness of capital requirements reforms and progress in implementing existing regulatory accords, the chapter discusses the procyclical effects of Basel regimes, and suggests a reform proposal.

Findings – Minimum bank capital requirements proposals in developing countries should be complemented by the adoption of an incremental, size-based leverage ratio.

Originality/value of chapter – This chapter contributes to enlarge the academic and policy debate related to bank capital regulation, with a particular focus on the situation of developing countries.

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International Banking in the New Era: Post-Crisis Challenges and Opportunities
Type: Book
ISBN: 978-1-84950-913-8

Book part
Publication date: 29 December 2016

Mariya Gubareva and Maria Rosa Borges

This chapter reassesses the economics of interest rate risk management in light of the global financial crisis by developing a derivative-based integrated treatment of interest…

Abstract

This chapter reassesses the economics of interest rate risk management in light of the global financial crisis by developing a derivative-based integrated treatment of interest rate and credit risk interrelation. The decade-long historical data on credit default swap spreads and interest rate swap rates are used as proxy measures for credit risk and interest rate risk, respectively. An elasticity of interest rate risk and credit risk, considered a function of the business cycle phases, maturity of instruments, economic sector, creditworthiness, and other macroeconomic parameters, is investigated for optimizing economic capital. This chapter sheds light on how financial institutions may address hedge strategies against downside risks implementing the proposed derivative-based integrated treatment of interest rate and credit risk assessment allowing for optimization of interest rate swap contracts. The developed framework of integrated interest rate and credit risk management is of special importance for emerging markets heavily dependent on foreign capital as it potentially allows emerging market banks to improve risk management practices in terms of capital adequacy and Basel III rules. Analyzing diversification versus compounding effects, it allows enhancing financial stability through jointly optimizing Pillar 1 and Pillar 2 economic capital.

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The Banking Sector Under Financial Stability
Type: Book
ISBN: 978-1-78769-681-5

Abstract

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The Banking Sector Under Financial Stability
Type: Book
ISBN: 978-1-78769-681-5

Book part
Publication date: 4 December 2018

Indranarain Ramlall

Abstract

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The Banking Sector Under Financial Stability
Type: Book
ISBN: 978-1-78769-681-5

Book part
Publication date: 1 March 2012

Elena Belogolovsky and Anit Somech

The purpose of this research was to explore common conceptions about the underlying nature of teachers’ organizational citizenship behaviors (OCBs). Two studies were conducted to…

Abstract

The purpose of this research was to explore common conceptions about the underlying nature of teachers’ organizational citizenship behaviors (OCBs). Two studies were conducted to examine the dynamic and subjective nature of the boundary between teachers’ in-role and extra-role behavior. Study 1, based on a sample of 205 teachers from 30 elementary schools in Israel, examined this boundary between teachers’ in-role and extra-role behaviors through teachers’ career stages. Study 2, based on a survey of 29 principals, 245 teachers, and 345 parents from 30 elementary schools in Israel, investigated how different stakeholders in schools (principals, teachers, parents) conceptualized teachers’ in-role–extra-role boundary. Results from these two studies attest to its dynamic and subjective nature. Implications for research and practice are discussed.

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Discretionary Behavior and Performance in Educational Organizations: The Missing Link in Educational Leadership and Management
Type: Book
ISBN: 978-1-78052-643-0

Book part
Publication date: 12 December 2022

Ifeoma A. Udeh

This study examines the factors that influence a private institution student’s plan to sit for the CPA exam soon after the undergraduate program versus after a master’s program or…

Abstract

This study examines the factors that influence a private institution student’s plan to sit for the CPA exam soon after the undergraduate program versus after a master’s program or never. The author examines the CPA exam factors: exam, cost, support, and career, noted by Coe (2016), and extend CPA exam literature through the examination of exam fees and review course material costs, rather than the composite CPA exam cost. From a survey of 63 accounting seniors, the author finds having 150 credit hours does not increase the likelihood of a plan to sit for the CPA exam soon after the undergraduate program. This result is different from studies that showed 150 credit hours is a barrier to taking the CPA exam. Consistent with studies that used the composite CPA exam cost, the author finds that perception of review course material as expensive negatively affects the likelihood of sitting for the CPA exam soon after the undergraduate program. The perception of exam fees as expensive positively affects the likelihood of sitting for the CPA exam soon after the undergraduate program. This result differs from studies that used the composite CPA exam cost.

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Advances in Accounting Education: Teaching and Curriculum Innovations
Type: Book
ISBN: 978-1-80382-727-8

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Book part
Publication date: 16 September 2022

Vasileios Ouranos and Alexandra Livada

Probability of Default (PD) is a crucial credit risk parameter. International accords have motivated banks and credit institutions to adopt objective systems of evaluating and…

Abstract

Probability of Default (PD) is a crucial credit risk parameter. International accords have motivated banks and credit institutions to adopt objective systems of evaluating and monitoring the PD. This study examines retail unsecured loans of a major Greek bank during the period of the financial crisis. It focusses on the stochastic behaviour of the financial states of the loans. It is tested whether a first-order Markov chain (MC) model describes sufficiently the transitions from one state to another. Moreover, Poisson regression models are estimated in order to calculate the limiting transition matrix, the limiting state probabilities and the PD. It is proved that the MC of the financial states of loans is non-homogeneous suggesting that the transition probabilities from one financial state to another are not constant across time. From the Poisson regression models, the transition probability matrix is estimated from one state to another in alternative time periods. From the limiting transition matrix, it is shown that if a loan is delayed then it is very likely to move towards the next worst case. The findings of this research could be useful for bank management.

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The New Digital Era: Other Emerging Risks and Opportunities
Type: Book
ISBN: 978-1-80382-983-8

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Book part
Publication date: 28 April 2016

Thomas L. Hogan and G. P. Manish

The Federal Reserve regulates U.S. commercial banks using a system of risk-based capital (RBC) regulations based on the Basel Accords. Unfortunately, the Fed’s mis-rating of…

Abstract

The Federal Reserve regulates U.S. commercial banks using a system of risk-based capital (RBC) regulations based on the Basel Accords. Unfortunately, the Fed’s mis-rating of several assets such as mortgage-backed securities encouraged the build-up of these assets in the banking system and was a major contributing factor to the 2008 financial crisis. The Basel system of RBC regulation is a prime example of a Hayekian knowledge problem. The contextual, tacit, and subjective knowledge required to properly assess asset risk cannot be aggregated and utilized by regulators. An effective system of banking regulation must acknowledge man’s limited knowledge and place greater value on individual decisions than on top-down planning.

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Studies in Austrian Macroeconomics
Type: Book
ISBN: 978-1-78635-274-3

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Content available
Book part
Publication date: 12 February 2021

Abstract

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Modeling Economic Growth in Contemporary Malaysia
Type: Book
ISBN: 978-1-80043-806-4

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