The basics of commercial banks: 2. Classification of commercial banks: * According to ownership: - National commercial banks - Joint-stock commercial banks: for example, Asia Bank, Bank of East Asia…. - Joint venture banks: - Branches of foreign banks: For example, HSBC, City Bank, ABN-AMRO ... * According to the nature of business: choosing to rely on wholesale customers (businesses, large sales transactions) and retail (personal ...) ...
A final way banks raise funds in the money market is through repurchase agreements (RPs). An RP is a
sale of securities with a simultaneous agreement by the seller to repurchase them at a later date. (For the
lender—that is, the buyer of the securities in such a transaction—the agreement is often called a reverse
RP.) In effect this agreement (when properly executed) is a short-term collateralized loan. Most RPs involve
U.S. government securities or securities issued by government-sponsored enterprises. Banks are active
participants on the borrowing side of the RP market. ...
This paper uses interest rate data that cover a longer period and that are based on more harmonised
principles than those used by previous pass-through studies for the euro area. We find that stronger
competition implies significantly lower interest rate spreads for most loan market products, as we
Banks and other depository institutions can also borrow on a short-term basis at the Federal Reserve
discount window and pay a rate of interest set by the Federal Reserve called the discount rate. A bank's
decision to borrow at the discount window depends on the relation of the discount rate to the federal funds
rate, as well as on the administrative arrangements surrounding the use of the window.
Banks also borrow funds in the money market for longer periods by issuing large negotiable certificates...
Furthermore, a concrete assessment of the impact of the proposal cannot yet be carried out
by financial institutions until the concrete proposals are made. For the time being the
recommendations lack the sufficient clarity or precision to understand the eventual effects
that can stem from the implementation of the proposals.
As we have witnessed during this crisis, financial stress can spread easily and quickly
across national boundaries. Yet, regulation is still set largely in a national context.
Without consistent supervision and regulation, financial institutions will tend to move
their activities to jurisdictions with looser standards, creating a race to the bottom and
intensifying systemic risk for the entire global financial system.
Lecture Money and banking - Lecture 17: Tax effect and term structure of interest rate presents the following content: Tax effect, term structure of interest rate, expectations hypothesis, liquidity premium.
Adjusted present value (APV) The net present value analysis of an asset if financed solely by equity (present value of un-levered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leverage buy-out.
Strategic Corporate Finance provides a ‘‘real-world’’ application of the
principles of modern corporate finance, with a practical, investment
banking advisory perspective. Building on 15 years of corporate finance
advisory experience, this book serves to bridge the chronic gap between
corporate finance theory and practice. Topics range from weighted average
cost of capital, value-based management and M&A, to optimal capital
structure, risk management and dividend/buyback policy.
The Honorable David Laro was appointed by President George H. W. Bush to the United
States Tax Court, confirmed by the Senate, and invested as a federal judge in November 1992.
He formerly practiced law in Michigan for 24 years, specializing in tax law.
Judge Laro is a graduate of the New York University School of Law (LLM in Taxation,
1970), the University of Illinois Law School (JD, 1967), and the University of Michigan
Before joining the U.S. Tax Court, Judge Laro was chairman and CEO of a publicly
traded international company.
Strategic Corporate Finance provides a ‘‘real-world’’ application of the principles of modern corporate finance, with a practical, investment banking advisory perspective. Building on 15 years of corporate finance advisory experience, this book serves to bridge the chronic gap between corporate finance theory and practice. Topics range from weighted average cost of capital, value-based management and M&A, to optimal capital structure, risk management and dividend/buyback policy.
In the surnmero f 1997, whent he Federal ReserveB anko f Bostons elected the topic for its fortysecond
annual economicc onference, manyp undits werea sking: "Is the business cycle dead, or
at least permanently dampened?"B y the time the Bank’s conference convenedi n June 1998,
the same pundits queried: "What caused the massive recessions in Asia?" and "Can the United
States remain ’an oasis of prosperity,’ as Fed Chairman Alan Greenspan termed it, while
economiesw orldwidea re under siege from financial crises?" Howq uickly things change!
BeyondS hocks:W hatC ausesB usiness Cycles ? t...
This book is designed to provide a broad range of guidance on the tax aspects of
decisions that must be made by companies in financial trouble. It will be useful
to financial advisors, accountants, lawyers, trustees, turnaround professionals,
examiners, creditors, bankruptcy judges, and debtors-in-possession.
The tax provisions of the Internal Revenue Code (I.R.C.) and the Bankruptcy
Code applicable to businesses that have filed a chapter 7 or a chapter 11 bank-
ruptcy petition are discussed in detail. Also explained are the provisions of the
debtor and its creditors.
The budget deficit equivalent to total government spending
tax minus total government spending revenue.If
income tax independently, but depend on the net
• Why does society need money?
• Why do governments wish to influence
• How do financial markets interact with
the ‘real’ economy?
• What is the relationship between money
and interest rates?
The Volcker Rule prohibitions come into effect on July
21, 2012, regardless of whether the regulations are ﬁ nal-
ized by that point.
37 Banking entities have a further pe-
riod of two years from the effective date to comply with
the Volcker Rule.
A banking entity may invest in or sponsor a covered
fund if (i) the banking entity is not directly or indirectly
controlled by a U.S. banking entity;
53 (ii) the banking en-
tity is a “foreign banking organization,” or, if not a foreign
banking organization, meets at least two of the following
tests: (a) total non-U.S. assets exceed total U.S. assets;
(b) total non-U.S. revenues exceed total U.S. revenues;
and (c) total non-U.S. income exceeds total U.S. income;
(iii) no ownership interests in the covered fund are of-
fered or sold to a U.S.
The main findings of our initial research with regard to the structure of the European microfinance
market are still valid. We are not going to repeat the analysis here but refer the interested reader
to the details of the original paper (see Kraemer-Eis and Conforti, 2009). We can summarise our
findings at the time in the following way:
SMEs constitute the backbone of entrepreneurship in the EU, irrespective of national
boundaries. The majority of these companies are micro-enterprises; in the EU-27, 92% of
the companies have fewer than 10 employees.
Section 619 of Dodd-Frank (the “Volcker Rule”)
generally prohibits any banking entity, including afﬁ liates
of banks, from the following (all of which are subject to
a number of exceptions): (i) engaging in, sponsoring or
investing in a “covered fund” (e.g., a hedge fund, pri-
vate equity fund, and numerous other private funds and
pooled investment vehicles), and (ii) having certain rela-
tionships with a covered fund.