The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers.
These differences are likely to stem from three important variations in user-side
data on the use of financial services. First, the definition of an account varies
across surveys and respondents are often prompted in different ways. The Global
Findex survey defines an account as an individual or joint account at a formal
financial institution (a bank, credit union, cooperative, post office, or microfi-
nance institution) and notes in the question text that an account can be used to
save money, to make or receive payments, or to receive wages and remittances.
Just to round out the sketch of what’s happened, I add the following. Large financial firms in
distress have received something like $50- billion in recapitalization funds from sovereign wealth
funds. So far there have been very few bank failures, five according to the FDIC since February
2007, but apparently 75 more institutions are on the problem list. One of the reasons why the crisis
hasn’t been more damaging is that most banks, especially large ones, went into the crisis with high
A third feature of the ongoing crisis follows from the preceding one.
International credit, defined here as foreign currency and cross-border credit, can pose
particular risks to an economy that is experiencing rapid domestic credit growth. Financial
crises in the past two decades have often followed periods of rapid credit expansion
accompanied by buoyant asset prices in equity and real estate. In Asia, these risks became
evident in the Asian financial crisis of 1997–98. More recently, the countries most affected by
the global financial crisis have demonstrated these risks anew.
Designed for the widest audience, without sacrificing a high level of understanding, graduating from limited math to arithmetic and algebra and some calculus
Covers forwards and futures, options, binomial trees, Black-Scholes, volatility and dynamic strategies with detailed definitions and examples
Few services are more important in our country than providing high-quality potable water and
ensuring that wastewater is properly treated and returned to the environment. Most Americans take
for granted the tens of thousands of people who are employed daily in addressing America’s water
and wastewater needs. Utility managers are responsible for making sure that proper water and
wastewater services are provided to residents, businesses, industries, and other customers within a
community. Water and wastewater employees work in utility operations and administrative support
Stability Bonds would promote efficiency in the euro-area sovereign bond market and in
the broader euro-area financial system. Stability Bond issuance would offer the possibility
of a large and highly liquid market, with a single benchmark yield in contrast to the current
situation of many country-specific benchmarks. The liquidity and high credit quality of the
Stability Bond market would deliver low benchmark yields, reflecting correspondingly low
credit risk and liquidity premiums (see Box 1).
The diversity of experiences across Africa, Latin America, and the rest
of the world notwithstanding, there are some commonality of lessons
that help translate them into findings that can aid countries that have
not as yet had the same experiences. These commonalties of experiences
within very different countries are important, whether the experience
relates to the autonomy of decisionmaking, to decentralization, or to
private sector participation.
The strong growth of credit in both cases, however, does not mean that domestic credit was the only
source for finance of enterprises. In both cases, retained savings by the enterprises played an important
role (in China today, these retained savings are an important factor to explain the high national saving
rate). However, it can well be argued that the strong credit creation is a necessary condition for profit
growth in an economy: Only if credit creation helps to maintain a high level of aggregate demand,
firms will be able to make sufficient profits in the aggregate.
This thesis is organised into seven chapters. Chapter One presents a general introduction to
the study. This provides an overview of the thesis, including the background and motivation
for the study, its main objectives, promising contributions, the methodology and the structure
of the thesis.
Chapter Two critically reviews the literature on mutual fund performance. The
chapter begins with the performance measures proposed in the literature, together with
empirical results for developed markets.
WHY SECURITY As computers becoming a part of our daily routine, we end up in leaving some of our sensitive information on our PC’s. These starts from Password’s, E-Mail Id’s, Credit card numbers, online banking details etc. Then there is another risk called viruses and spyware when you are online. There is only one fundamental difference between a virus and spyware, viruses are written for destruction and spywares for gain. When we speak about computer security what it means is that, how we can prevent intruders from entering our systems.
The cash ﬂows diagram for the mexican CAT bond is described in Figure 4.
CAT-MEX Ltd. issues the bond that is placed among investors and invests the
proceeds in high quality assets within a collateral account. Simultaneous to the
issuance of the bond, CAT-MEX Ltd. enters into a reinsurance contract with
SRC. The proceeds of the bond will also serve to provide SRC coverage for earth-
quakes in Mexico in connection with an insurance agreement that FONDEN has
entered with the European Finance Reinsurance Co. Ltd., an indirect wholly-
owned subsidiary of SRC.
It is highly likely that by augmenting the amount of funding available to banks,
securitization activity had a significant and positive impact on credit growth during the years
prior to the credit crisis (Loutskina and Strahan, 2009, Altunbas et al., 2009). In a number of
countries experiencing a period credit growth, securitization activity probably strengthened the
feedback effect between increases in housing prices and the credit expansion.
Already about two decades ago, Robert Lucas (1990) asked: “Why Doesn’t Capital Flow
from Rich to Poor Countries?”, wondering why only very little capital in net term was
flowing from the industrial world to developing economies. In the past years, this trend has
even aggravated: Nowadays, in many cases, net capital flows have reversed and are now
flowing from developing and emerging countries towards the rich world, especially towards
the United States, United Kingdom, Australia and Spain.
The main goal of our estimation is to study the industry incidence of tax evasion. We
Önd a high tax evasion multiple for doctors, engineers, private tutors, Önancial services agents,
accountants, and lawyers, consistently across di§erent credit models.
We turn to making sense of the industry distribution. We Önd no evidence that the govern-
ment is subsidizing either areas of local economic growth or industries o§ering apprentice-like
training to unskilled workers.
The data allow us to focus on eight basic questions about the microfinance “industry”: Who are
the lenders? How widespread is profitability? Are loans in fact repaid at the high rates
advertised? Who are the customers? Why are interest rates so high? Are profits high enough to
attract profit-maximizing investors? How important are subsidies? How robust are the financial
data? The answers then take us back to reconsider the initial questions of subsidy, profit, and
social impact in microfinance.
Who are the lenders?
The clash between Grameen Bank and...
“The class focuses on the likely roles that business professionals
will have in regard to information systems: end-user, manager,
and innovator,” said CIS Department Chairman Dr. Richard
Mathieu. “In order to accomplish these goals, the hands-on
component of the class focuses on collaboration and workl ow.”
After gaining admittance to the College of Business, a CIS stu-
dent’s junior campaign begins with a 12-credit integrated course
in which students create a business plan.
Second, we reestimate our baseline specification while adding control variables, ranging
from initial fiscal and current account balances to initial bank credit risk and household debt
levels. These could plausibly have both affected the growth forecast error and been correlated
with fiscal consolidation forecasts. Not controlling for such factors could influence the
estimated relation between fiscal consolidation forecasts and growth forecast errors. We find,
however, that our results are robust to the introduction of such controls.
To determine why some teachers are more effective than others, Bosshardt and Watts
(1990) investigated teacher effects on student learning in high school economics classes using
fixed- and random-effects models. The teacher characteristics they examined included college
credits in economics, non-credit workshops in economics, years of teaching experience, and the
extent of teachers’ past instruction in economics. They found that the most effective teachers
were those who had completed more courses in economics.
Although FHLBanks can use published securities ratings to help make investment decisions,
they should also consider other sources of financial information. Exclusive reliance on ratings
can be an unsafe and unsound banking practice because credit ratings may lag actual changes in
credit quality. There have been a number of instances where companies maintained investment
grade ratings until just before they defaulted.
To manage investment risks prudently, FHLBanks should supplement external ratings with
internal credit analysis.