Prof. Ivo Pezzuto's Presentation at the ICTF Prague 2014 Symposium titled: "Predictable and Avoidable: lessons learned from the recent financial crises and how to help prevent the next one."
This presentation by Sebastian Schich draws attention to a potentially fundamental flaw in the design of the European banking union, which is the incomplete harmonization of the underlying financial safety net.
It abstracts somewhat from the specific institutional aspects that currently figure prominently in the European safety net discussion in the financial press. According to one popular view, the European safety net requires, in addition to a common lender of last resort, three pillars, that is first, a common regulatory framework and a single supervisor, second a single bank restructuring fund and third, harmonised or unified deposit insurance. This view implies that the current banking union agenda is incomplete as only the first of the three pillars is in place. While the presentation agrees with the basic assessment that the banking union agenda is still incomplete, the approach taken places a sharp focus on the safety net functions rather than the institutions providing these functions, acknowledging however that both aspects are important. In particular, it argues that the modern definition of the financial safety net includes a guarantor of last resort function.
Moreover, as long as a common fiscal backstop for the European banking sector is missing, the guarantor-of-last-resort function remains a national issue. In fact, an analysis of data reveals that bank debt benefit from implicit guarantees and that the value of the guarantees reflect not only the weakness of the bank but also the strength of the sovereign perceived to be providing the guarantees. This observation is consistent with the view that the GOLR function is perceived as being provided by each sovereign to its domestic banks only. As a result, especially during periods of heightened market stress, banks in Europe face different funding conditions depending on where they are located.
Read more about OECD work on financial sector guarantees http://www.oecd.org/daf/fin/financial-markets/financialsectorguarantees.htm
This presentation on the G20/OECD High-Level principles on Financial Consumer Protection and sectoral guarantee arrangements by Sebastian Schich addresses the role of guarantee arrangements to protect consumer assets in the financial service sector, such as pension and insurance claims and bank deposits.
More information is available on the OECD website at http://www.oecd.org/finance/financialsectorguarantees.htm
http://www.oecd.org/finance/financialconsumerprotection.htm
OECD, 35th Meeting of Senior Budget Officials - George KopitsOECD Governance
This presentation by George Kopits was made at the 35th Meeting of Senior Budget Officials held in Berlin on 12-13 June 2014. Find more information at http://www.oecd.org/gov/budgeting/35thannualmeetingofoecdseniorbudgetofficialssboberlingermany12-13june2014.htm
This document summarizes the various risks facing financial institutions, including interest rate risk, credit risk, liquidity risk, foreign exchange risk, country or sovereign risk, market risk, off-balance-sheet risk, technology and operational risk, and insolvency risk. It provides definitions and explanations of each type of risk, discussing how they can impact financial institutions' returns, asset values, and ability to meet obligations. The risks stem from factors like interest rate changes, borrower defaults, withdrawal demands, currency fluctuations, political actions, market movements, contingent activities, system failures, and insufficient capital to offset asset losses.
Back to the basics: the impact of collateral requirements on the use of OTC d...László Árvai
The document discusses the impact of collateral requirements on the use of over-the-counter (OTC) derivatives by final clients. It notes that derivatives are often the best tool for transferring risk, but that appropriate derivatives may not be available or may be too costly or cumbersome due to collateral requirements, which can negatively impact the real economy. The document examines studies on the positive economic impact of derivatives and provides a case study of a Swiss pension fund's use of derivatives. It also discusses challenges posed by regulatory uncertainty and lack of collateral safety for end users.
Input for UNCTAD 2014 World Investment ReportLilac Nachum
This document discusses concerns about the sustainability and accountability of foreign investment by government-controlled entities like Sovereign Wealth Funds and State-Owned Enterprises. It notes that while such investment offers benefits, the lack of transparency and potential for political influence raises fears. There have been various attempts to regulate this investment through voluntary principles and ratings systems, but challenges remain around differing perceptions of sustainability standards between countries and lack of credibility in disclosures. Global uniform standards are ideal but difficult to achieve given resistance from some investors and harmonizing sustainability definitions across diverse nations.
Euro Dissolution Panel Discussion: Giving Treasury the Tools to Take the LeadHedgeTrackers
Panel Discussion was presented at Peninsula Treasury Management Association Monthly Luncheon. The following presented: Helen Kane, President, Hedge Trackers; Laura Langone, Director Global Risk Management, Juniper Networks; Guillermo Gualino, Assistant Treasurer, Agilent Technologies; Tamara Anthony, Director of Treasury, Lam Research.
They discussed the risk factors and the due diligence performed by your treasury peers to address the possibility of one or multiple countries defecting from the Euro. All areas of treasury are contemplated including operational cash management, currency hedge programs, counter-party risk and enterprise risk. We will also discuss how other treasury groups and peer organizations are raising awareness, how best to educate senior management and how to identify potential tax and legal implications.
1) The insurance sector is the only major economic sector that lacks an agreed international accounting standard and solvency framework.
2) Solvency II aims to establish a risk-based solvency regime for insurers across Europe using market consistent valuation and capital requirements, but negotiations have stalled it implementation since 2009 due to the financial crisis and intense lobbying.
3) While Solvency II is meant to strengthen insurer solvency management and supervision, some argue its risk measures and calibrations do not fully account for business realities and off-model events.
This presentation by Sebastian Schich draws attention to a potentially fundamental flaw in the design of the European banking union, which is the incomplete harmonization of the underlying financial safety net.
It abstracts somewhat from the specific institutional aspects that currently figure prominently in the European safety net discussion in the financial press. According to one popular view, the European safety net requires, in addition to a common lender of last resort, three pillars, that is first, a common regulatory framework and a single supervisor, second a single bank restructuring fund and third, harmonised or unified deposit insurance. This view implies that the current banking union agenda is incomplete as only the first of the three pillars is in place. While the presentation agrees with the basic assessment that the banking union agenda is still incomplete, the approach taken places a sharp focus on the safety net functions rather than the institutions providing these functions, acknowledging however that both aspects are important. In particular, it argues that the modern definition of the financial safety net includes a guarantor of last resort function.
Moreover, as long as a common fiscal backstop for the European banking sector is missing, the guarantor-of-last-resort function remains a national issue. In fact, an analysis of data reveals that bank debt benefit from implicit guarantees and that the value of the guarantees reflect not only the weakness of the bank but also the strength of the sovereign perceived to be providing the guarantees. This observation is consistent with the view that the GOLR function is perceived as being provided by each sovereign to its domestic banks only. As a result, especially during periods of heightened market stress, banks in Europe face different funding conditions depending on where they are located.
Read more about OECD work on financial sector guarantees http://www.oecd.org/daf/fin/financial-markets/financialsectorguarantees.htm
This presentation on the G20/OECD High-Level principles on Financial Consumer Protection and sectoral guarantee arrangements by Sebastian Schich addresses the role of guarantee arrangements to protect consumer assets in the financial service sector, such as pension and insurance claims and bank deposits.
More information is available on the OECD website at http://www.oecd.org/finance/financialsectorguarantees.htm
http://www.oecd.org/finance/financialconsumerprotection.htm
OECD, 35th Meeting of Senior Budget Officials - George KopitsOECD Governance
This presentation by George Kopits was made at the 35th Meeting of Senior Budget Officials held in Berlin on 12-13 June 2014. Find more information at http://www.oecd.org/gov/budgeting/35thannualmeetingofoecdseniorbudgetofficialssboberlingermany12-13june2014.htm
This document summarizes the various risks facing financial institutions, including interest rate risk, credit risk, liquidity risk, foreign exchange risk, country or sovereign risk, market risk, off-balance-sheet risk, technology and operational risk, and insolvency risk. It provides definitions and explanations of each type of risk, discussing how they can impact financial institutions' returns, asset values, and ability to meet obligations. The risks stem from factors like interest rate changes, borrower defaults, withdrawal demands, currency fluctuations, political actions, market movements, contingent activities, system failures, and insufficient capital to offset asset losses.
Back to the basics: the impact of collateral requirements on the use of OTC d...László Árvai
The document discusses the impact of collateral requirements on the use of over-the-counter (OTC) derivatives by final clients. It notes that derivatives are often the best tool for transferring risk, but that appropriate derivatives may not be available or may be too costly or cumbersome due to collateral requirements, which can negatively impact the real economy. The document examines studies on the positive economic impact of derivatives and provides a case study of a Swiss pension fund's use of derivatives. It also discusses challenges posed by regulatory uncertainty and lack of collateral safety for end users.
Input for UNCTAD 2014 World Investment ReportLilac Nachum
This document discusses concerns about the sustainability and accountability of foreign investment by government-controlled entities like Sovereign Wealth Funds and State-Owned Enterprises. It notes that while such investment offers benefits, the lack of transparency and potential for political influence raises fears. There have been various attempts to regulate this investment through voluntary principles and ratings systems, but challenges remain around differing perceptions of sustainability standards between countries and lack of credibility in disclosures. Global uniform standards are ideal but difficult to achieve given resistance from some investors and harmonizing sustainability definitions across diverse nations.
Euro Dissolution Panel Discussion: Giving Treasury the Tools to Take the LeadHedgeTrackers
Panel Discussion was presented at Peninsula Treasury Management Association Monthly Luncheon. The following presented: Helen Kane, President, Hedge Trackers; Laura Langone, Director Global Risk Management, Juniper Networks; Guillermo Gualino, Assistant Treasurer, Agilent Technologies; Tamara Anthony, Director of Treasury, Lam Research.
They discussed the risk factors and the due diligence performed by your treasury peers to address the possibility of one or multiple countries defecting from the Euro. All areas of treasury are contemplated including operational cash management, currency hedge programs, counter-party risk and enterprise risk. We will also discuss how other treasury groups and peer organizations are raising awareness, how best to educate senior management and how to identify potential tax and legal implications.
1) The insurance sector is the only major economic sector that lacks an agreed international accounting standard and solvency framework.
2) Solvency II aims to establish a risk-based solvency regime for insurers across Europe using market consistent valuation and capital requirements, but negotiations have stalled it implementation since 2009 due to the financial crisis and intense lobbying.
3) While Solvency II is meant to strengthen insurer solvency management and supervision, some argue its risk measures and calibrations do not fully account for business realities and off-model events.
OECD project on institutional investors and long term investment - Raffaele D...OECD Governance
This presentation was made by Raffaele Della Croce, OECD, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
Banks face numerous risks that must be carefully managed. The document outlines several key risks faced by banks: credit risk from loan defaults, market risk from changes in market prices, operational risk from failed internal processes, liquidity risk from inability to fund operations, and reputational risk from negative publicity. It also provides examples of how specific banks like Northern Rock and Barings faced risks that ultimately led to losses or collapse without proper risk mitigation. Effective risk management requires banks to identify, assess, prioritize and control risks, as well as purchase insurance and diversify their portfolios.
This document discusses using a central bank's balance sheet as a tool for permanently depositing financial losses in order to establish financial stability. It describes how a central bank can take on financially destabilizing assets from financial institutions, absorbing any losses onto its own balance sheet. This functions as a "final deposition" of those losses, removing them from the broader financial system. The document outlines several ways the central bank can do this, such as by purchasing troubled assets, loosening collateral requirements for loans, or establishing a special purpose vehicle. However, it notes this approach has economic effects like redistributive consequences, incentive issues, and inflation risks that need to be weighed against the financial stability benefits.
The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms.
Hence, a primary importance is given to risk profiling in all financial institutions.
One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as non repayment of a loan as per agreed conditions, to the lender, thus ruining the lender’s investment.
The non repayment can be intentional (willful default), due to failure of an industry (systemic risk), failure of cross currency settlement (settlement risk) etc.
In this article, we are going to explore credit risk. We will discuss its basic meaning, types, causes, effects and how banks all over the world have made attempts to monitor, mitigate, transfer and at times, accept the risk.
“Những thách thức về Quy chế tài chính thời kỳ hậu khủng hoảng kinh tế” là nghiên cứu Giáo sư Ania Zalewska, Đại học Bath, Anh Quốc, mang tới hội nghị VEAM (Vietnam Economist Annual Meeting ) 2015
"Challenges of financial regulation in the post crisis world" is the study Prof. Ania Zalewska, Bath University, UK, brought to VEAM 2015.
Để biết thêm chi tiết về các hoạt động và nghiên cứu của DEPOCEN truy cập
Website: http://depocen.org/vn/
LinkedIn: http://linkd.in/1GnHrHB
Facebook: DEPOCEN
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
The document discusses the importance of infrastructure development and defines infrastructure. It notes that infrastructure development provides the foundation for countries to capitalize on opportunities from globalization. It then defines infrastructure according to different government agencies and lists key infrastructure sectors. The document also discusses various methods of financing infrastructure projects, including traditional financing, project financing, and concessionary financing instruments. It outlines the project appraisal process and highlights key issues related to appraising large, complex infrastructure projects.
This document provides an overview of country risk analysis. It discusses the history and sources of country risk data, including rating agencies. Various methodologies are described for analyzing economic, financial, and geopolitical factors that influence a country's risk level. The document outlines the key components of a comprehensive country risk analysis, including evaluating a country's economic policies, financial system, and strengths/weaknesses. The overall goal is to assess risk exposure and set appropriate pricing for credit or investment decisions involving that country.
The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
The document summarizes a presentation on public investment management (PIM) systems given by Anand Rajaram of the World Bank. It discusses key questions around public investment and introduces a framework for assessing PIM systems. Examples are provided of advanced PIM systems in countries like the UK and emerging systems in countries like Vietnam and Sierra Leone. The document concludes that while calls for more public investment are growing, attention must also be paid to strengthening PIM institutions to ensure funds are well spent.
This document discusses the various types of risks faced by banks, including credit risk, liquidity risk, market risk, operational risk, capital risk, and others. It provides definitions and considerations for evaluating each type of risk, such as key ratios to examine for credit risk, balance sheet items that influence liquidity risk, and how changes in interest rates and exchange rates can impact market risk. The CAMELS framework for regulatory bank ratings is also summarized. Overall, the document provides an overview of fundamental risks in bank financial intermediation and how they can be assessed.
Current Trends in Selected Industries: BankingEren Ocakverdi
This document provides an overview of banking and financial systems. It discusses:
1) The role of banks and other financial institutions as intermediaries that borrow funds from savers and lend to borrowers. This indirect finance is more important than direct finance through securities markets.
2) How financial intermediaries help address information asymmetry and manage risk. They also allow for economies of scale and risk sharing.
3) Sources of external financing for businesses, with bank loans being the most important in many countries.
4) Dynamics of financial crises, particularly in emerging markets, which often start with a lending boom and bust followed by a currency crisis and broader financial crisis. Weak regulation and supervision can exacerbate these
The document discusses the concept of a central bank, such as the European Central Bank (ECB), acting as a "Bad Bank" by using its balance sheet to permanently deposit financial losses from market participants that could threaten financial stability. This "final deposition of losses" would stabilize the financial system but also has economic effects like redistribution of losses and potential inflation. Implementing such a policy through the ECB raises questions about sovereignty for EU member states given the ECB's independence and the unstable financial conditions in the Eurozone.
This document discusses how UK pension funds can access and invest in UK infrastructure assets. It notes that banks are looking to divest project finance loans, and infrastructure assets are now seen as a separate asset class suitable for pension funds. However, pension funds need help assessing and managing these investments. The document outlines different types of infrastructure assets and considerations for appropriately structuring investments. It then discusses traditional investment approaches and their limitations. Finally, it discusses how Evolution can help pension funds originate, evaluate, structure and manage direct infrastructure investments in a tailored way.
Financial institutions face many types of risk that can impact their returns and solvency. Some of the major risks include credit risk from borrower defaults, liquidity risk from unexpected withdrawals, interest rate risk from changes in rates, market risk from price fluctuations, and operational risk from failures in systems or processes. Managing these interconnected risks is a key objective of financial institution managers.
This document discusses various types of risks including:
- Market risk, strategic risk, sales risk, management risk, and budget risk as types of business risks.
- Systematic risk and unsystematic risk.
- Inflation risk, exchange rate risk, interest rate risk, liquidity risk, maturity risk, credit risk, and political risk.
It provides definitions and explanations of these risks. The document also outlines a process for risk management including identifying risks, analyzing them, ranking them, and developing contingency plans for high probability/high impact risks.
Attracting Private Investment To Ghana V3daviwright
This document discusses attracting private investment to Ghana's rail infrastructure. It outlines several key concerns that must be addressed to attract private investors, including financial viability of projects, distribution of revenues, and risk assessment. Private investors require projects to have clear revenues to cover costs and provide adequate returns. The document also details challenges Africa faces in attracting private investment, such as weak infrastructure, macroeconomic instability, and political/regulatory risks. It argues Ghana must address these issues through reforms to improve its business environment and attract more private capital for development.
institutional investment in infrastructure development in developing countriesArslan Shani
This document discusses the potential for institutional investors to help fill the infrastructure financing gap in developing countries. It finds that while infrastructure projects could deliver long-term returns for institutional investors, investments in emerging markets require careful structuring. The document analyzes the types of institutional investors and their current limited allocations to emerging market infrastructure. It also examines challenges to increasing such allocations, like sovereign risk and a lack of investable projects. Finally, it considers models for institutional investor involvement in infrastructure in developing countries.
The document discusses liquidity risk, which can be defined as a bank's ability to meet its short-term obligations. It is measured over a specific time horizon and depends on factors like a bank's cash inflows and outflows. Liquidity risk is affected by both external market characteristics and internal factors specific to a bank's positions. Reporting on liquidity risk involves reconciling accounting and liquidity data, projecting contractual cash flows, and analyzing liquid assets, funding sources, and leading indicators of liquidity issues.
This document summarizes a Financial System Stability Assessment (FSSA) of Greece conducted by the International Monetary Fund (IMF). The Greek financial system has strengthened since EU integration, with profitable and well-capitalized banks, but also faces challenges from rapid credit growth exposing banks to new risks. Medium-term challenges include improving competitiveness and developing new funding sources. Supervision has been effective for banks but weaker for insurance. Key recommendations include monitoring credit risks from new lending, strengthening supervision across all sectors, and addressing structural issues hampering competitiveness.
Dr. Ivo Pezzuto is a professor of economics, business policy, and international management. He has taught at several universities and business schools. He has also worked as a senior executive for major corporations and currently works as an economics analyst and commentator. He has published several papers and books on economic and financial topics, including his book "Predictable and Avoidable" about the causes of the global financial crisis. The document provides details on his educational and professional background as well as summaries of his publications and speaking engagements.
Ivo Pezzuto - Miraculous Financial Engineering or Toxic Finance? The Genesis ...Dr. Ivo Pezzuto
SMC University Working Paper Issue 12: 2008
Pezzuto, Ivo, Miraculous Financial Engineering or Toxic Finance? The Genesis of the U.S. Subprime Mortgage Loans Crisis and its Consequences on the Global Financial Markets and Real Economy (October 7, 2008). Available at SSRN: http://ssrn.com/abstract=1332784 or http://dx.doi.org/10.2139/ssrn.1332784
This document provides a summary of a project report on international capital movements. It begins with an introduction and acknowledgements. It then discusses different types of international capital movements including foreign direct investment, portfolio investment, official flows, and external commercial borrowing. It analyzes determinants and role of foreign capital as well as its impacts and drawbacks. It also examines foreign capital flows to developing economies and India specifically. The report provides an overview of international capital movements and their significance for economic development.
OECD project on institutional investors and long term investment - Raffaele D...OECD Governance
This presentation was made by Raffaele Della Croce, OECD, at the 8th meeting of Senior Public-Private Partnerships and Infrastructure Officials held in Paris on 23-24 March 2015.
Banks face numerous risks that must be carefully managed. The document outlines several key risks faced by banks: credit risk from loan defaults, market risk from changes in market prices, operational risk from failed internal processes, liquidity risk from inability to fund operations, and reputational risk from negative publicity. It also provides examples of how specific banks like Northern Rock and Barings faced risks that ultimately led to losses or collapse without proper risk mitigation. Effective risk management requires banks to identify, assess, prioritize and control risks, as well as purchase insurance and diversify their portfolios.
This document discusses using a central bank's balance sheet as a tool for permanently depositing financial losses in order to establish financial stability. It describes how a central bank can take on financially destabilizing assets from financial institutions, absorbing any losses onto its own balance sheet. This functions as a "final deposition" of those losses, removing them from the broader financial system. The document outlines several ways the central bank can do this, such as by purchasing troubled assets, loosening collateral requirements for loans, or establishing a special purpose vehicle. However, it notes this approach has economic effects like redistributive consequences, incentive issues, and inflation risks that need to be weighed against the financial stability benefits.
The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms.
Hence, a primary importance is given to risk profiling in all financial institutions.
One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as non repayment of a loan as per agreed conditions, to the lender, thus ruining the lender’s investment.
The non repayment can be intentional (willful default), due to failure of an industry (systemic risk), failure of cross currency settlement (settlement risk) etc.
In this article, we are going to explore credit risk. We will discuss its basic meaning, types, causes, effects and how banks all over the world have made attempts to monitor, mitigate, transfer and at times, accept the risk.
“Những thách thức về Quy chế tài chính thời kỳ hậu khủng hoảng kinh tế” là nghiên cứu Giáo sư Ania Zalewska, Đại học Bath, Anh Quốc, mang tới hội nghị VEAM (Vietnam Economist Annual Meeting ) 2015
"Challenges of financial regulation in the post crisis world" is the study Prof. Ania Zalewska, Bath University, UK, brought to VEAM 2015.
Để biết thêm chi tiết về các hoạt động và nghiên cứu của DEPOCEN truy cập
Website: http://depocen.org/vn/
LinkedIn: http://linkd.in/1GnHrHB
Facebook: DEPOCEN
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
The document discusses the importance of infrastructure development and defines infrastructure. It notes that infrastructure development provides the foundation for countries to capitalize on opportunities from globalization. It then defines infrastructure according to different government agencies and lists key infrastructure sectors. The document also discusses various methods of financing infrastructure projects, including traditional financing, project financing, and concessionary financing instruments. It outlines the project appraisal process and highlights key issues related to appraising large, complex infrastructure projects.
This document provides an overview of country risk analysis. It discusses the history and sources of country risk data, including rating agencies. Various methodologies are described for analyzing economic, financial, and geopolitical factors that influence a country's risk level. The document outlines the key components of a comprehensive country risk analysis, including evaluating a country's economic policies, financial system, and strengths/weaknesses. The overall goal is to assess risk exposure and set appropriate pricing for credit or investment decisions involving that country.
The World Bank's framework for assessing PIM systems - Anand Rajaram, World B...OECD Governance
The document summarizes a presentation on public investment management (PIM) systems given by Anand Rajaram of the World Bank. It discusses key questions around public investment and introduces a framework for assessing PIM systems. Examples are provided of advanced PIM systems in countries like the UK and emerging systems in countries like Vietnam and Sierra Leone. The document concludes that while calls for more public investment are growing, attention must also be paid to strengthening PIM institutions to ensure funds are well spent.
This document discusses the various types of risks faced by banks, including credit risk, liquidity risk, market risk, operational risk, capital risk, and others. It provides definitions and considerations for evaluating each type of risk, such as key ratios to examine for credit risk, balance sheet items that influence liquidity risk, and how changes in interest rates and exchange rates can impact market risk. The CAMELS framework for regulatory bank ratings is also summarized. Overall, the document provides an overview of fundamental risks in bank financial intermediation and how they can be assessed.
Current Trends in Selected Industries: BankingEren Ocakverdi
This document provides an overview of banking and financial systems. It discusses:
1) The role of banks and other financial institutions as intermediaries that borrow funds from savers and lend to borrowers. This indirect finance is more important than direct finance through securities markets.
2) How financial intermediaries help address information asymmetry and manage risk. They also allow for economies of scale and risk sharing.
3) Sources of external financing for businesses, with bank loans being the most important in many countries.
4) Dynamics of financial crises, particularly in emerging markets, which often start with a lending boom and bust followed by a currency crisis and broader financial crisis. Weak regulation and supervision can exacerbate these
The document discusses the concept of a central bank, such as the European Central Bank (ECB), acting as a "Bad Bank" by using its balance sheet to permanently deposit financial losses from market participants that could threaten financial stability. This "final deposition of losses" would stabilize the financial system but also has economic effects like redistribution of losses and potential inflation. Implementing such a policy through the ECB raises questions about sovereignty for EU member states given the ECB's independence and the unstable financial conditions in the Eurozone.
This document discusses how UK pension funds can access and invest in UK infrastructure assets. It notes that banks are looking to divest project finance loans, and infrastructure assets are now seen as a separate asset class suitable for pension funds. However, pension funds need help assessing and managing these investments. The document outlines different types of infrastructure assets and considerations for appropriately structuring investments. It then discusses traditional investment approaches and their limitations. Finally, it discusses how Evolution can help pension funds originate, evaluate, structure and manage direct infrastructure investments in a tailored way.
Financial institutions face many types of risk that can impact their returns and solvency. Some of the major risks include credit risk from borrower defaults, liquidity risk from unexpected withdrawals, interest rate risk from changes in rates, market risk from price fluctuations, and operational risk from failures in systems or processes. Managing these interconnected risks is a key objective of financial institution managers.
This document discusses various types of risks including:
- Market risk, strategic risk, sales risk, management risk, and budget risk as types of business risks.
- Systematic risk and unsystematic risk.
- Inflation risk, exchange rate risk, interest rate risk, liquidity risk, maturity risk, credit risk, and political risk.
It provides definitions and explanations of these risks. The document also outlines a process for risk management including identifying risks, analyzing them, ranking them, and developing contingency plans for high probability/high impact risks.
Attracting Private Investment To Ghana V3daviwright
This document discusses attracting private investment to Ghana's rail infrastructure. It outlines several key concerns that must be addressed to attract private investors, including financial viability of projects, distribution of revenues, and risk assessment. Private investors require projects to have clear revenues to cover costs and provide adequate returns. The document also details challenges Africa faces in attracting private investment, such as weak infrastructure, macroeconomic instability, and political/regulatory risks. It argues Ghana must address these issues through reforms to improve its business environment and attract more private capital for development.
institutional investment in infrastructure development in developing countriesArslan Shani
This document discusses the potential for institutional investors to help fill the infrastructure financing gap in developing countries. It finds that while infrastructure projects could deliver long-term returns for institutional investors, investments in emerging markets require careful structuring. The document analyzes the types of institutional investors and their current limited allocations to emerging market infrastructure. It also examines challenges to increasing such allocations, like sovereign risk and a lack of investable projects. Finally, it considers models for institutional investor involvement in infrastructure in developing countries.
The document discusses liquidity risk, which can be defined as a bank's ability to meet its short-term obligations. It is measured over a specific time horizon and depends on factors like a bank's cash inflows and outflows. Liquidity risk is affected by both external market characteristics and internal factors specific to a bank's positions. Reporting on liquidity risk involves reconciling accounting and liquidity data, projecting contractual cash flows, and analyzing liquid assets, funding sources, and leading indicators of liquidity issues.
This document summarizes a Financial System Stability Assessment (FSSA) of Greece conducted by the International Monetary Fund (IMF). The Greek financial system has strengthened since EU integration, with profitable and well-capitalized banks, but also faces challenges from rapid credit growth exposing banks to new risks. Medium-term challenges include improving competitiveness and developing new funding sources. Supervision has been effective for banks but weaker for insurance. Key recommendations include monitoring credit risks from new lending, strengthening supervision across all sectors, and addressing structural issues hampering competitiveness.
Similar to Ivo Pezzuto's Presentation of Book "Predictable and Avoidable: lessons learned from the recent financial crises and how to help prevent the next one"
Dr. Ivo Pezzuto is a professor of economics, business policy, and international management. He has taught at several universities and business schools. He has also worked as a senior executive for major corporations and currently works as an economics analyst and commentator. He has published several papers and books on economic and financial topics, including his book "Predictable and Avoidable" about the causes of the global financial crisis. The document provides details on his educational and professional background as well as summaries of his publications and speaking engagements.
Ivo Pezzuto - Miraculous Financial Engineering or Toxic Finance? The Genesis ...Dr. Ivo Pezzuto
SMC University Working Paper Issue 12: 2008
Pezzuto, Ivo, Miraculous Financial Engineering or Toxic Finance? The Genesis of the U.S. Subprime Mortgage Loans Crisis and its Consequences on the Global Financial Markets and Real Economy (October 7, 2008). Available at SSRN: http://ssrn.com/abstract=1332784 or http://dx.doi.org/10.2139/ssrn.1332784
This document provides a summary of a project report on international capital movements. It begins with an introduction and acknowledgements. It then discusses different types of international capital movements including foreign direct investment, portfolio investment, official flows, and external commercial borrowing. It analyzes determinants and role of foreign capital as well as its impacts and drawbacks. It also examines foreign capital flows to developing economies and India specifically. The report provides an overview of international capital movements and their significance for economic development.
Journal- The Pension Risk Management Framework Redington
This document introduces Redington's Pension Risk Management Framework (PRMF) for managing risks in defined benefit pension schemes. Recent economic conditions like falling equity markets, declining interest rates, resilient inflation, and increasing longevity have significantly worsened funding positions of UK pension schemes. Effective risk management is important for trustees and sponsors to address rising deficits and market volatility. The PRMF requires stakeholders to agree key objectives and constraints, ensure realistic plans in light of risk budgets, and provide clear actions when outcomes diverge from funding plans. It aims to minimize sponsor contributions and risk of benefit cuts for members by balancing objectives of different stakeholders.
Peer-to-peer lending and equity crowdfunding have grown rapidly since the crisis and have attracted the attention of governments who wish to facilitate alternative forms of capital allocation. This report investigates the nature of Financial Return crowdfunding, including outlining the main benefits and risks of the industry and the global regulatory environment the industry currently operates in.
World Economic Forum - Impact Investing, A Primer for Family Offices - 2014Shiv ognito
The goal of this report is to help family offices ask the right questions as they contemplate their path into impact investing. It is important to recognize that
impact investing may not suit all investors. There will be family offices which conclude impact investing is not appropriate at this stage for them.
Mohamed El-Erian discusses the need for investors to recognize increased uncertainty in the global political and economic landscape. He advises building portfolio resilience through scenario analysis of multiple possible outcomes, increased liquidity, and recognizing the limitations of traditional risk mitigation strategies given new political risks. El-Erian also emphasizes the importance of pension funds assessing what risks they can and cannot afford given current underfunding levels.
The document discusses Special Purpose Vehicles (SPVs), how they contributed to the 2007 financial crisis, their structure and uses, benefits and risks. Some key points:
- SPVs played a role in securitizing subprime mortgages and fueled the housing bubble. When borrowers defaulted, SPVs couldn't pay investors and banks had to announce losses.
- SPVs are legal entities that hold assets and issue securities to investors. They are used for securitization, financing, risk sharing and raising capital.
- Benefits to sponsoring firms include tax benefits, isolation of risk, and meeting regulatory requirements. Risks include lack of transparency, reputational risk from SPV underperformance
Fund managers and selectors discuss their views on multi-asset funds. They note the challenges of maintaining diversification and limiting downside risk in the current environment of increased volatility and correlation between asset classes. Selectors favor managers with experience in different market conditions who can manage liquidity risks and changing monetary policies. They have selected several top performing multi-asset funds that have balanced risk and returns over the past years.
How are EMEA investors responding to changing macroeconomic and regulatory environments, stakeholder objectives and pressures, and market conditions? Based on a survey of 200 institutional investors in the region, this report takes a detailed look.
Euromoney 5th Annual Private Wealth Management Forum Asia 2009: Chairman\'s K...Tuck Seng Low
This document summarizes the opening speech given at the 5th Annual Private Wealth Management Forum Asia. The chairman notes that wealth management has undergone significant changes since the 2008 financial crisis, including increased regulation and tighter credit. He argues that the industry needs to rebuild trust by returning to basics, conducting thorough due diligence, and gaining a better understanding of risks. Rebuilding trust will require reforms across financial institutions, accounting firms, credit rating agencies, and other participants to address flaws exposed by the crisis and restore confidence in the global financial system.
The document discusses how global insurers are rethinking their investment strategies in response to divergent monetary policies and quantitative easing programs. It finds that while insurers see positive short-term effects of QE on asset prices and growth, many are concerned about potential long-term imbalances and market distortions. Insurers are seeking to increase yield by taking on more risk, but are struggling due to low liquidity in fixed income markets and the lack of quality opportunities. They are holding high cash levels as they look for the right investments. Insurers are diversifying into alternative assets like real estate and private credit that generate income. Overall monetary policy uncertainty is a challenge as insurers balance short-term benefits of QE against
Mohamed El-Erian, Chair of President, Obama’s Global Development Council, Chief Economic Advisor at Allianz, Former CEO & Co-Chief Investment Officer of PIMCO
Eloy Lindeijer, CIO, PGGM
This summary analyzes the impact of hedging on statutory accounting results for variable annuity products under Actuarial Guideline XLIII and C-3 Phase II RBC standards. The analysis found that for a third of the companies studied, hedging did not provide the intuitive benefit of reducing required capital. Some companies even saw increases in total asset requirement or required capital after including hedges. This unintuitive result appears to be driven by hedges decreasing the standard scenario amount more than the stochastic calculation amount. The interaction of the deterministic standard scenario floor and stochastic calculations also contributes to variability in hedging impact across companies. The differences between real-world statutory valuations and market-based valuations further
The document discusses challenges facing the financial services sector. It mentions cybersecurity as a major challenge, with hackers stealing data, encrypting systems, or demanding ransom. Strict government regulations that are sometimes politically motivated also pose difficulties. There is high competition in the industry from both domestic and international players. Financial institutions face rising operational costs to fund innovation, technology updates, and marketing. Processing massive amounts of customer data and transactions carries the risk of errors reducing efficiency. Overall, financial sectors play an important role in the economy despite facing various challenges.
Working paper-insights-from-the-south-african-experience-nov-2012 0Dr Lendy Spires
This document summarizes a study examining the linkages between financial inclusion and the other core objectives of financial stability, integrity, and consumer protection (referred to as I-SIP objectives) based on examples from South Africa. The study analyzes specific policies and regulations implemented in South Africa to understand how they considered and addressed potential risks and benefits across the I-SIP objectives. Based on these examples, the study tentatively proposes a methodology for policymakers to optimize I-SIP linkages by applying the principle of proportionality. The methodology is summarized in seven guidance statements focused on collaboration, identifying linkages, defining objectives, data collection, and adapting policy over time based on evidence.
Working Paper Insights from the South African ExperienceDr Lendy Spires
This document summarizes a study examining the linkages between financial inclusion and the other core objectives of financial stability, integrity, and consumer protection (referred to as I-SIP objectives) based on examples from South Africa. The study analyzes specific policies and regulations implemented in South Africa to understand how they considered and addressed potential risks and benefits across the I-SIP objectives. Based on these examples, the study proposes a methodology for policymakers to optimize I-SIP linkages by applying a principle of proportionality when designing financial inclusion policies and regulations. The methodology is summarized in seven guidance statements focused on inter-agency collaboration, assessing linkages, defining objectives, segmenting markets, collecting data, consulting stakeholders, and adapting over time based
Working paper-insights-from-the-south-african-experience-nov-2012 0(1)Dr Lendy Spires
This document summarizes a study examining the linkages between financial inclusion and the other core objectives of financial stability, integrity, and consumer protection (referred to as I-SIP objectives) based on examples from South Africa. The study analyzes specific policies and regulations implemented in South Africa to understand how they considered and addressed potential risks and benefits across the I-SIP objectives. Based on these examples, the study proposes a methodology for policymakers to optimize I-SIP linkages by applying a principle of proportionality when designing financial inclusion policies and regulations. The methodology is summarized in seven guidance statements focused on inter-agency collaboration, assessing linkages, defining objectives, segmenting markets, collecting data, consulting stakeholders, and adapting over time based
I need a 125 word reply to each of the four following forum postings.docxtroutmanboris
I need a 125 word reply to each of the four following forum postings in a finance class (500 words total) You are responding to comments made by other students in the class. MUST BE ORIGINAL!
Forum #1
When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These risks may sometimes make it difficult to maintain constant and reliable revenue. Foreign exchange risk occurs when the value of investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profit or returns earned in the foreign country will decrease after being exchanged back to the domestic currency. Political risk transpires when a country's government unexpectedly changes its policies, which now negatively affect the foreign company. These policy changes can include such things as trade barriers, which serve to limit or prevent international trade. “Since 2010, one in ten of the countries surveyed have experienced a significant increase in the level of short-term political risk. These risks include governments asserting control over natural resources, regimes being ousted by popular uprisings and the expropriation of foreign investors' assets” (Brown, Sophle. 2013).
References
Brown, Sophle. Political instability on the rise. Dec 11, 2013. Retrieved from web:
http://www.cnn.com/2013/12/11/business/maplecroft-political-risk/
Forum #2
Multinational companies seem to be the standard for future business. They are typically more productive and pay their workers more than comparable locally owned businesses (Eun & Renick, 2015). With the many advantages that are available to multinationals it is no surprise that companies are shifting in this direction. However, all of the advantages do not come risk free as you may have expected. Two of the significant risks associated with multinationals and international financial management are foreign exchange risk and political risks.
Foreign exchange risk is what would likely be the first thing you would consider when thinking about international finance. Exchange rates fluctuate on a regular basis and can be somewhat unpredictable at times. This has been the case since the early 1970s when fixed exchange rates were abandoned (Eun & Renick, 2015). Exchange risk is the difference between the exchange rate at the moment a business deal is closed for a given amount and the exchange rate at the moment when .
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The Covid-19 pandemic, like other previous crises, will certainly leave lasting economic scars around the world in the years to come, but hopefully, it will also become the catalyst of a brighter and more sustainable future, thanks to the acceleration of industries’ transformation, digitalization, consolidation, reconfiguration of supply chains, productivity enhancements, and invention of new business models. The article aims to explore some of the greatest challenges facing the world economy in the post-COVID-19 era and the major casualties and potential risks related to dramatic externality.
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Understanding Ponzi Schemes
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Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
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2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
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Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Ivo Pezzuto's Presentation of Book "Predictable and Avoidable: lessons learned from the recent financial crises and how to help prevent the next one"
1. Dr Ivo Pezzuto
Professor of Economics, Business Policy, and International Management
i.pezzuto@gmail.com
https://www.linkedin.com/in/drpezzutoivo
https://twitter.com/IvoPezzuto
Skype: i.pezzuto
Predictable and Avoidable: lessons learned from
the recent financial crises and how to help
prevent the next one