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The National Pension Service (NPS) of Korea suddenly announced that they would suspend their stock lending business from October 22, 2018. Using this ideal setting, the authors investigate the effects of this suspension on market quality and short-selling activities. The authors find that stock return does not increase after the suspension of stock lending for both the KOSPI and KOSDAQ markets. However, the returns of stocks with NPS ownership decline less than those without NPS ownership. The authors also find that the institutional and foreign investors' short sales did not increase in both markets after the lending business suspension by the NPS. In addition, the effect of suspension of stock lending on market quality is mixed, so the authors cannot conclude that market quality has improved. Overall, the authors’ results indicate that the stock market, especially for short-sales activity, has not been affected by the suspension of the stock lending service by the NPS.

This paper aims to analyze the dynamics of the security lending process and lending markets to identify the market-wide variables reflecting the characteristics of the stock borrowed and to measure the credit risk arising from lending contracts.

Using the data provided by Istanbul Settlement and Custody Bank on the equity lending contracts of Securities Lending and Borrowing Market between 2010 and 2012 and the data provided by Borsa Istanbul on Equity Market transactions for the same timeframe, this paper analyzes whether stock price volatility, stock returns, return per unit amount of risk and relative liquidity of lending market and equity market affect the defaults of lending contracts by using both linear regression and ordinary least squares regression for robustness and proxying the concepts of relative liquidity, volatility and return constructs by more than variable to correlate findings.

The results illustrate a statistically significant relationship between volatility and the default state of the lending contracts but fail to establish a connection between default states and stock returns or relative liquidity of markets.

With the increasing pressure for clearing security lending contracts in central counterparties, it is imperative for both central counterparties and regulators to be able to precisely measure the risk exposure due to security lending transactions. The results gained from a limited set of lending transactions merit further studies to identify non-borrower and non-systemic credit risk determinants.

This is the first study to analyze the non-borrower and non-systemic credit risk determinants in security lending markets.

Aware of both the opportunities for automation of its union catalogues and of the problems posed by a potential shift to uncontrolled direct interlending stimulated by the growth of the co‐operatives' shared cataloguing databases, the British Library set up an Ad hoc Working Party on Union Catalogues, which reported in April. A strategy of interlending catalogue provision is proposed that has as its main elements a Union Finding List of Foreign Language Monographs on COM, a Lending Division monograph stock catalogue, on COM and on‐line, and the Combined Regional Locations List enhanced with Lending Division stock. Work is under way to choose a system capable of supporting these catalogues as well as the acquisition, cataloguing and request checking activities of the Division. The first phases of operation are scheduled for 1984.

The paper discusses the main features of Hongkong Clearing's new ‘compulsory’ stock borrowing programme, the reasons behind its implementation, the risk exposure of lenders and the borrower (ie Hongkong Clearing), and problems associated with the lack of collateral for loaned stocks and possible solutions.

Requests to the Lending Division, which totalled 2,919,000, increased by 2% over 1978/79 — an increase due entirely to a further large growth in demand from foreign libraries, which made 544,000 requests. Performance (84% of valid requests satisfied from stock, 9.5% sent to back‐up libraries or supplied with locations) was much the same as in the previous year. A test of minimal bibliographic checking of requests yielded promising results. A rail‐van transport scheme was started in the West Midlands, and plans were made for further schemes. A Keyword Index to Serial Titles held by the Division, produced originally for internal use, was published. The number of currently received serials rose by 5% to 54,000, and 119,000 monographs (including 44,000 donations) were added to stock; attempts were made to improve further coverage of report literature. The extension to the Urquhart building, containing 42 miles of shelving, was almost completed. New price rates for article translations put this service on a sounder financial footing but were accompanied by a fall in demand. Courses in the use of the literature had to be abandoned for reasons of staffing.

Of the 377,000 requests per annum which the British Library Lending Division receives from overseas, some 21,000 are loan requests and the remainder are for photocopies. This paper reports the results of a study of the loan demand during six weeks in March/April 1977. Of the requests received during that period 77% arrived through the post and 23% by telex. Although most requests were for English language material only half were for British items. Of these 56% were for monographs and about a third were for humanities material (compared with a figure of only 11% of total demand on the Division). Most requests (73%) came from Europe, especially Scandinavia, and in this respect the distribution is quite different from the overseas photocopy demand, of which less than 50% comes from Europe. 51% of all requests are satisfied from stock, with a further 20% being passed to other libraries in the UK. The figures are 50% and 33% for British publications, where the Division is under more of an obligation to search throughout the country.

This paper proposes and models stock loan lotteries, a financial innovation that improves individual investor welfare. Stock loan lotteries are prize-linked payoffs using securities lending fees.

This paper solves an existing theoretical model for an investor's utility-maximizing choices with and without stock loan lotteries and compares outcomes.

Stock loan lotteries motivate prospect theory investors to buy and hold risky assets with high expected returns. Stock loan lotteries improve welfare more for poor investors and improve welfare more in a model with market frictions such as trading costs.

Stock loan lotteries increase household savings, leading to greater financial wealth and security in retirement.

This paper proposes a new financial product that improves financial outcomes for individual investors.

The year saw for the first time a reduction in demand (by 2.1%) — a small reduction (1.2%) in the case of British demand, larger (6.3%) for foreign demand. 2,856,000 requests in all were received, 510,000 of them from abroad. Further consideration was given to the future of the Union Catalogue of Books both within the Division and through a British Library Working Party on Union Catalogues. An experimental scheme of lending books in oriental languages as a last resort from the Reference Division began. SRL titles were gradually added to the computer‐produced Keyword Index of Serial Titles, and British Reports, Translations and Theses, produced by word processor, superseded the Announcements Bulletin. The Conference Proceedings Index became available on‐line. Intake included 56,000 current serials (an increase of 3.7%), 105,000 monographs, and 200,000 reports including some British local government documents. Conservation became a matter of increasing concern. The extension to the Urquhart Building was completed, and a major move of stock took place. Surveys included an analysis of serial use resulting in up‐to‐date rank lists. Discussions took place with publishers on possible co‐operation in electronic storage and transmission of journal articles. The ad hoc article translating service was discontinued.

After outlining the unique functions of the Lending Division, the paper explains the interaction between it and the British Library as a whole. Policy‐making in such an organisation is complex and this is achieved by a series of meetings ranging from the British Library Board, which deals with major decisions for the whole Library, through senior management at the Lending Division holding regular meetings to discuss all aspects of its work to meetings between junior management with their staff, where minor and major problems can be ironed out. The staff structure of the Lending Division emphasises the low ratio of senior to junior staff. Because of its size and uniqueness the Lending Division pays particular attention to communications both within and without; internally this is achieved by meetings between various grades of staff and a Newsletter, externally by a number of publications, participation in conferences, extensive advisory machinery and the publication of its own journal.

1976/77 saw a much smaller increase in demand from British libraries, but a very large increase in overseas demand. Pilot road/rail schemes for transporting interlibrary loans showed very promising results. Use of back‐up libraries increased substantially, while the number of locations given declined slightly. The number of current serials taken increased to 48,480. As the present buildings nearly reached the limits of their capacity, little used material began to be outhoused, and off‐site provision was made for the receipt of donations. The report also deals with translating services, MEDLARS, courses and seminars, research and computer applications, and publications.