Financial Institutions and Markets

The methodology of Feldstein and Horioka (Econ. J. 90 (1980) 314) is used to gauge the degree of capital mobility and accessibility to international financial markets following financial liberalisation. The sample consists of 90 developing countries divided into four regions: ...

We investigate the relationship between performance and portfolio management team structure of open-end mutual funds during 1997–2004. We first analyze differences in performance and risk taking between single-manager and multiple-manager mutual funds and find that the latter underperform the single-manager funds in terms of risk-adjusted returns during the 2001–2004 bear market. This underperformance is more evident among growth-oriented funds. There are no differences observed in the 1997–2000 bull market. Not all multiple-manager funds, however, are managed by pure teams. When we compare the performance of single-manager and pure-team funds we do not find any differences in performance. The underperformance of multiple-manager funds documented in previous studies comes from multiple-manager funds that employ many investment advisors and, therefore, their exact management structure is unknown. We also document differences in management structure reporting between Morningstar and CRSP.

"The liquidity problems of small enterprises have considerable importance to conduct a research. Small enterprises are experiencing heightened levels of competitions and
problems. Adequate Liquidity is a key driving force for managing business enterprises successfully by reducing such problems. It is also necessary to find out reasons of the liquidity problems of small enterprises and solutions to overcome such problems for
ensuring successful business environment. It is difficult for small enterprises to raise enough capital from different sources because of complex and time consuming process.
If these problems persist for long-time, entrepreneurs are bound to stop their businesses. Moreover, the findings of the study indicate that small enterprises are facing difficulties to get enough financial support from banks and financial institutions due to
difficult terms and conditions imposed by them. Government, Bank of England and banks have taken some measures to support small enterprises morally and financially, but the benefits of
these measures are not widely visible. It is known that gender, life of enterprises, nature and types of businesses, educational background of entrepreneurs, initial investment, etc.
have influence on success of small enterprises. The findings of this study reveal that these influences are not significant enough because of current economic downturn.""

In the first part of this paperer, we emphasize the adaptability and continuity of the lender-of-last-resort doctrine beyond the diversity of financial structures from the 19th century to the present day. The second part deals with the global credit crisis and the analysis of the central banks’ innovative practices during the 2007-2008 financial crisis. We highlight that the lender of

Purpose: The purpose of this paper was to identifying the loan default rate and its impact on profitability, and
determining ways of reducing loan defaults in microfinance institutions.
Design/methodology/approach: The study adopted both qualitative (case study) and quantitative methods
respectively. Financial institutions were selected to gather data, which was acquired from answers obtained from
our administered questionnaire and also through interviews. The population of the survey constituted the
management and non-management staff and customers of First Allied savings and loans limited, Eden
Microfinance and Opportunity International savings and loans Limited.
Findings: Hypotheses of the study will be analyzed using correlation and regression. Results of the study show
that there are high positive correlation between the constructs of loan default rate and profitability of the various
microfinance institutions.
Keywords: Loan default rate, profitability, microfinance institutions

Executive Summary

• The 2013 report includes 126 credit unions compared to 121 credit unions last year. The 126 credit unions represent 91.2% of the total movement’s assets compared to 90.8% in the previous year.   
• The credit union system membership (not including the Caisses Populaires) has increased by 66,831 to 5,310,711 in 2013. The membership has increase in the last three years after showing small decreases in 2010 and 2009. 
• The continued consolidation of the movement* has resulted in the 10 largest credit unions accumulating assets of 77.0 billion representing 48.2% of total assets of the movement compared to $73.2 billion or 48.4% of the movement in the previous year. The 10 largest credit unions grew at 5.1% which was slower than the largest credit union’s growth of 6.2% and slower than the total movement’s growth of 5.7%. 
• The asset growth of the 126 largest credit unions slowed in 2013 to 6.3% compared to 8.1% in the previous year. The growth of the movement’s assets was 5.7% in 2012 compared to 7.1% in the previous year. 
• The number of credit unions in the system declined by 16 credit unions primarily due to mergers and amalgamations from 335 in 2011 to 319 in 2012. While, the number of branches decreased from 1,737 in 2012 to 1,733 in 2013. This is fourth year in row that the number of branches has declined.
• The movement’s loans increased from $125.9 billion in 2012 to $135.9 billion in 2013, an increase of 5.9% compared to 8.2% in the previous year. 
• The largest credit union’s insured mortgage loan portfolio (only 45 credit unions reported these figures) , stood at $6.5 billion representing 35.1% of the residential mortgage portfolio compared to 48.5% for the large Canadian domestic banks. 
• While, credit union movement’s deposits increased by 5.9% from $133.5 billion in 2012 to $141.4 billion in 2013, compared to an increase of 7.3% in the previous year.
• Despite the troubles in the Canadian economy in 2013, the credit quality of the movement’s loan portfolio (as represented by the largest credit unions) remains very favourable. The allowance as a percentage of gross loans for the 126 largest credit unions decreased from 0.36% in 2012 to 0.31% in 2013.  The gross impaired loans as a percentage of total loans for the largest credit unions decreased to 0.50% compared to 0.64% in the previous year.
• Despite near historical low interest rates and increasing operating costs, the largest credit unions experienced another profitable year in 2013. The return on assets (ROA) remained at 0.64% in 2013 compared to 0.62% in 2013.
• Net interest margin decreased from 2.35% in 2012 to 2.28% in 2013 and operating expenses as a % of average assets decreased from 2.36% in 2012 to 2.27% in 2013. The productivity expense ratio (operating expenses as a % of total operating revenue) improved to 74.1% in 2012 compared to 76.3% in 2012. 
• Credit unions rely on profitability to grow their capital. The majority of the movement’s total capital is in retained earnings. Capital ratios are affected by balance sheet growth, risk-weighting of growth, and profitability. The movement retains a portion of its annual income to satisfy its capital plans. The remainder of the net earnings are allocated to its members through the movement’s patronage program.
• The movement returned $173.6 million to its members by way of patronage payments, which represented 19.3% of its net income in 2013 compared to 23.6% in the previous year. Total capital stood at $10.1 billion, which represented 6.91% of its assets compared to 6.67% in 2012.
• The movement had a total BIS risk adjusted ratio declined slight to 12.59% compared to 12.77% in the previous year.

*Definition: “movement*” or” system*” in this report does not include the financial results of caisses populaires system in Quebec, Ontario, Manitoba and New Brunswick.

Financial sector has a specific role in the country's economy as a driving force of growth and development. In the same way as the efficiency of the national economy can be fostered by the development of financial mechanism, it can be also threatened by possible financial crisis and instabilities. Therefore, a question of regulation and supervision of all parts of financial system are of major importance for any country. The regulations refer mostly to maintenance of financial stability and consumer protection. In order to protect the interest of the society and to accelerate the economy development it is necessary to provide adequate legal framework as well as independent supervision institutions. The structure of the financial sector in the Republic of Croatia is underdeveloped and characterized by domination of the banking sector and the issue of regulatory model of financial sector is solved by adopting the model of a group of independent agencies for each activity. The Croatian National Bank is in charge of the supervision of operations conducted by banks and savings banks. Non-banking financial institutions (investment funds, pension funds, insurances) are regulated by a wide range of regulatory Because of such a wide range of regulatory institutions, the problems of authority overlapping and insufficient regulation unavoidably arises, especially by the development and deregulation of financial markets. Because of that, it seems reasonable to investigate the existing regulatory framework of non-banking financial institutions in Croatia. The aim of this paper is to determine if the introducing of an integrated financial supervision of non-banking financial sector is justified. In order to give an answer to this complex question, a comparative analysis will be carried out by presenting a models of consolidated supervision of financial institutions and markets for several European countries. 2 The authors conclude that there are measures to ensure a stable and more efficient financial system.

Recently, NGOs are classified as part of key service providers to society because of their contributions and increasing amounts of contributions to different sectors of economy. NGOs contributions have been extended to offer relief services, agriculture, emergency services, and protection services to affected areas in connection with government ministries. This research seeks to reveal the screening factors used by NGOs in funds allocation and utilization on the projects and programs. Descriptive research design was used in this research. The target population consists of all NGOs operating in Kenya. The sample of this study consisted of 100 NGOs and donor agencies. NGOs and donor agencies were classified in to different strata such as health, education, agriculture and humanitarian sector where random sampling method was employed to select the sample size of 100. A structured closed questionnaire was used for data collection. Multiple regression analysis was used in the data analysis. The output was presented using charts, tables, descriptive statistics and correlation analysis. From the analysis of the respondent's responses, the findings show that choice on vulnerability, poverty orientations and reach, income and wealth inequalities, lack of development approach, absence of strategic planning, poor networking, political interference, lack of adequate funds, poor governance policies, limited operational capacity and poor NGOs efficiency significantly contributes to funds allocation and utilization NGOs.

This paper studies seven GARCH models, including RiskMetrics and two long memory GARCH models, in Value at Risk (VaR) estimation. Both long and short positions of investment were considered. The seven models were applied to 12 market indices and four foreign exchange rates to assess each model in estimating VaR at various confidence levels. The results indicate that both stationary and fractionally integrated GARCH models outperform RiskMetrics in estimating 1% VaR. Although most return series show fat-tailed distribution and satisfy the long memory property, it is more important to consider a model with fat-tailed error in estimating VaR. Asymmetric behavior is also discovered in the stock market data that t-error models give better 1% VaR estimates than normal-error models in long position, but not in short position. No such asymmetry is observed in the exchange rate data.

This study investigates the impact of EU accession on financial markets in the Czech Republic, Estonia, Hungary, Poland, Romania and Slovakia and what effect, if any, EU entry had on the cointegration relationships between these markets and developed ones. Using a VAR approach, we find an increase in the number of cointegration relationships over time. However, it appears that EU accession plays a minor direct role in the development of these links, cointegration being driven more by financial and economic factors as opposed to explicit political actions.

This paper reviews some steps that paved the way for the development of sentiment analysis (or opinion mining), a technique apparently used by Jim Simons’ Medallion fund for scoring an ‘impossible’ performance: a 66% annual average rate of return in the 31 years between 1988 and 2018.
Sentiment analysis is a powerful tool that uses natural language processing (NLP), or computational linguistics, to determine whether a text is positive, negative or neutral about a company and, in ultimate analysis, to discover stock prices patterns.
Here we trace back its origins to some tools invented during past centuries to recognize the meaning of symbols used by humans to communicate, plainly or secretively: Egyptians’ hieroglyphs, Julius Caesar’s cipher, Fibonacci’s abbreviations, Mary Stuart’s code.

We investigate the determinants of commercial bank acquisitions in the former fifteen countries of the European Union by evaluating the impact of bank-specific measures, such as size, growth and efficiency of banks, and external influences reflecting industry level differences in the regulatory and supervision framework, market environment and economic conditions. Our empirical analysis involves multinomial logit estimation at various levels in order to identify those characteristics that most consistently predict targets and acquirers from a sample of over 1400 commercial banks. The overall results indicate that, relative to banks that were not involved in the acquisitions, (i) targets and acquirers were significantly larger, less well capitalized and less cost efficient, (ii) targets were less profitable with lower growth prospects, and acquirers more profitable with higher growth prospects, (iii) external factors have affected targets and acquirers differently, and their effects have not been consistent or robust to sample size changes.

Investment is no longer a matter of individual savers directly choosing which shares or bonds to buy. Rather, most of their money flows through a 'chain': an often extended sequence of intermediaries. What goes on in that chain is of huge importance: The world's investment managers, who are now almost as well paid as top bankers, control assets equivalent in value to around a year of total global economic output. In Chains of Finance, five social scientists discuss the ways in which the intermediaries in the chain influence each other, channel the flows of savers' money, enhance investment decisions, and form audiences for each other's performances of financially competent selves. The central argument of the book is that investment management is fashioned profoundly by the opportunities and constraints this chain creates. Whether chains constrain or enable, however, they always entangle, tying intermediaries to each other - silently and profoundly shaping the inv...

Recently, NGOs are classified as part of key service providers to society because of their contributions and increasing amounts of contributions to different sectors of economy. NGOs contributions have been extended to offer relief services, agriculture, emergency services, and protection services to affected areas in connection with government ministries. This research seeks to reveal the screening factors used by NGOs in funds allocation and utilization on the projects and programs . Descriptive research design was used in this research. The target population consists of all NGOs operating in Kenya. The sample of this study consisted of 100 NGOs and donor agencies. NGOs and donor agencies were classified in to different strata such as health, education, agriculture and humanitarian sector where random sampling method was employed to select the sample size of 100. A structured closed questionnaire was used for data collection. Multiple regression analysis was used in the data analy...

Situations like climate change, ecosystem degradation, poverty, etc., have increased the importance of financing resources for green investments. In this chapter, instruments offered by the banking sector to finance green investments in Turkey are evaluated. Moreover, the role and effectiveness of the Turkish banking system in achieving sustainable development are determined.

Do we know exactly what the problems are in financial markets? The answer may not be a ‘firm’ yes. Hence, we should not be in a hurry to fix solutions beforehand and create new institutions / intermediaries / infrastructures just to make things comfortable, desirable and easier. These new I I I s may turn out to be Frankenstein' Monsters in due course of time!

The global financial industry is in the midst of unprecedented and challenging times. Changes in market conditions drive a very different economic climate which beckons the need to accelerate market harmonization in emerging countries. What are the lessons learned from cross border around the globe? How can emerging markets piggy back on the global trends for harmonization? What role should central banks and other global market leaders play in driving harmonization? Where should it start: infrastructure, currency, regulation? In my view, infrastructure should be the starting point for harmonizing financial markets. With in infrastructure, technology particularly financial technology should be starting point for harmonization.

This paper examines the empirical relation between private credit by banking institutions and capital market development under different financial structural characteristics. We find that in market based systems and countries with developed financial systems, an increase in bank credit impedes the development of capital markets. However, the result is opposite in bank based systems and countries with underdeveloped financial systems. Therefore, although at lower levels of economic and financial development, stock markets and banks act as complementarities, at higher levels of economic and financial development, they do not. The impact of increased credit flow on the liquidity in capital markets is also found to be pronounced in market based economies. Since we find that a market based system is not more effective than a bank based system at facilitating the development of the capital market, we argue that instead of promoting a shift toward a market based system, effort should be concentrated on developing a balanced financial structure. JEL Classification: G10 G20 G28 O11

This article discusses the border disputes between the provinces of Minas Gerais and São
Paulo (1780-1815). More specifically, it examines the conflicts of jurisdiction and financial administration
from the creation of the “Juntas da Real Fazenda” in Portuguese America and the
creation of the “Erário Régio” in the Portuguese Empire.

In this paper, we use a bivariate VAR-asymmetric-BEKK-GARCH model to examine returns, asymmetric volatility spillovers, and time-varying correlations among GCC stock markets (Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain) and five global factors (Islamic stocks, oil, gold, bonds, and real estate) from July 5, 2004, to March 31, 2021. To take into account the effects of the global financial crisis (GFC) and recent COVID-19 pandemic, we divide the sample period into four sub-periods: the full sample without COVID-19, pre-GFC, post-GFC, and the COVID-19 crisis. The empirical results indicate significant return and volatility spillovers between the GCC stock markets and global factors. Moreover, these spillovers between GCC stock markets and global factors increase in both the return and variance during turbulent periods (post-GFC and COVID-19 crisis periods). The time-varying correlations reveal that gold serves as a hedge and safe haven against most of the GCC stock markets in all sample periods, whereas the results vary across markets and sample periods for bonds, oil, Islamic stocks, and real estate assets against the GCC stocks. Our findings provide useful insights for investors and portfolio managers formulating trading strategies, determining asset allocation, and assembling optimal portfolios, since they persistently pursue challenging investment ideas and alternative asset classes, especially at times of financial crisis and global recession.