|
on Banking |
| By: | Evan F. Koenig |
| Abstract: | In an economy in which debt obligations are fixed in nominal terms, but there are otherwise no nominal rigidities, a monetary policy that targets inflation inefficiently concentrates risk, tending to increase the financial distress that accompanies adverse real shocks. Nominal-income targeting spreads risk more evenly across borrowers and lenders, reproducing the equilibrium that one would observe if there were perfect capital markets. Empirically, inflation surprises have no independent influence on measures of financial strain once one controls for shocks to nominal GDP. |
| Keywords: | Debt ; Inflation risk |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:1111&r=ban |
| By: | Chrysanthi Balomenou; John Magridis |
| Abstract: | Our article consists of the following 4 parts: - In the first part: documented the importance of credit risk with the presentation - analysis of the growth of 6 Greek major financial institutions loan portfolio, for the period 2001 to 2008 and comparison of the loan amount with their own funds and total assets them (based on published accounts). - In the second part: we refer to the approval and monitoring procedures that should be followed by banks using the internal ratings (IRB) methods for corporate loans. Our interest is focused on linking credit ratings to the terms of financing (collateral costs) and on the importance of evaluation / assessment and collateral for the balance of exposures. For typesetting the above is estimated the Risk Weight Assets for PD rating scale (National Bank of Greece published data) and relevant Figure/diagram. - In the third part: we analyse the methodology of key criteria for evaluating the creditworthiness of companies. At the same time for a short description of Greek Business environment we used the -List Easy of Doing Business index 2010- of the World Bank and the results of the assessment of business sectors in Greece according to the model of Credit Risk Tracker Greece's Standard & Poor's, as published by the Hellastat. (The key criteria for evaluating creditworthiness of companies mainly come from research on the websites of the companies Fitch, S & P, Moody's KMV, Hellastat, Easy of Doing Business index). - In fourth part: presented, properly treated, the results of empirical research conducted through distribution of questionnaire to 25 experienced in Risk Management, executives, which was called to assess 20 companies on the basis of their specific quantitative and qualitative characteristics. Finally it is noted that in this final part are also presented all the findings and related conclusions, resulting from the scientific research throughout this paper. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p946&r=ban |
| By: | Chrysanthi Balomenou; Marianthi Maliari |
| Abstract: | It is common knowledge that Small and Medium enterprises make up the backbone of the Greek economy. Nowadays during the greatest post war financial crisis, the fund availability critically determines the survival and the development of almost every enterprise. In the first part of this presentation we will refer to the financial crisis in Greece. Apparently one of the major economic problems in our country is the widely extended corruption throughout all the economic activities including corruption 0n banks. In the second part we will present the impact of the recession on the banking sector in local and national level and the consequences of the great reduction of loan providing funds to Small and Medium Enterprises (SMEs). We will present the fact that nowadays, entrepreneurs can not obtain loans based on personal guarantee, and they have to offer their own house as collateral. In the third part we will refer to Serres, former prefecture of Greece, where the economic inability and underdevelopment to all the levels of local economy is obvious. We will also refer to the fact that while on turmoil governments schedule programs using the criterion of efficiency instead of the criterion of equity. Under these circumstances, the area of Serres will never be developed. In the forth part we will present the results of the questionnaire-based research from the local entrepreneurs in the Prefecture of Serres. We will focus on the consequences of a economical crisis. It is worth referring to the fact that their answers are similar to those deduced from the results of the researches that have been referred to in bibliography. Finally we will end this presentation with the main conclusions. KEYWORDS -Financial crisis -Loan providing funds -Local entrepreneurship -Former Prefecture of Serres |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p716&r=ban |
| By: | Narcissa Balta; Eric Ruscher |
| Abstract: | This paper analyses the interactions between household wealth, mortgage decisions and savings in a single empirical framework and identifies an important role for a "down-payment channel" in the euro area. Contrary to the traditional housing wealth channel, the "down-payment channel" posits a positive relation between household savings and house prices: a rise in house prices forces credit-constrained households who wish to acquire a house to accumulate more savings in order to cover a higher down-payment (i.e. the share of the housing acquisition value that is not covered by a mortgage). The overall effect of a rise in house prices on private consumption can be seen as the result of two offsetting forces: a rise in house prices tends to push up consumption via the traditional housing wealth channel but it also tends to depress the consumption of credit-constrained households who wish to acquire a house via the down-payment channel. Estimates based on a structural VEC model for the euro area suggest that the down-payment effect tends to dominate in the medium term, translating into an overall negative impact of higher house prices on consumption in the euro area. |
| JEL: | E21 E44 D12 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:euf:ecopap:0445&r=ban |