Copyright © 2010 Pearson Education. All rights reserved. Chapter 11 Economic Analysis of Financial Regulation.

Slides:



Advertisements
Similar presentations
Economic Analysis of Financial Regulation
Advertisements

An Overview of the Financial System
REGULATION OF FINANCIAL INSTITUTIONS
Economic Analysis of Banking Regulation
:Word Morphing ★★☆☆☆ 題組: Problem Set Archive with Online Judge 題號: 10508:word morphing 解題者:楊家豪 解題日期: 2006 年 5 月 21 日 題意: 第一行給你兩個正整數, 第一個代表下面會出現幾個字串,
第九章 運銷通路 授課老師 簡立賢. 授課大綱 運銷通路之涵意及其基本結構  何謂運銷通路  運銷通路的基本結構 影響農產品運銷通路選擇之因素  產品因素  市場因素  廠商因素  法規因素 運銷效率之判斷  通路中階段數目與運銷效率  通路競爭與運銷效率.
Chapter Eighteen Banking Regulation Slide 18–3 How Asymmetric Information Explains Banking Regulation 1.Government Safety Net and Deposit Insurance a.Prevents.
© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter 14 Regulating the Financial System.
1 Chapter 4 利率概述. 2 前 言 本章將探討: 如何衡量殖利率 利率的各種報價方法 債券利率與債券投資的關係 實質利率與名目利率之區別.
Maclachlan, Money & Banking Spring Banking Regulation Chap. 11.
Copyright © 2000 Addison Wesley Longman Slide #17-1 Chapter Seventeen THRIFTS: SAVINGS AND LOANS AND CREDIT UNIONS.
貨幣創造與控制 CHAPTER 27 學習本章後,您將能: C H A P T E R C H E C K L I S T 解釋銀行如何藉由放款而創造貨幣 1 解釋中央銀行如何影響貨幣數量 2.
消費者物價指數反映生活成本。當消費者物價指數上升時,一般家庭需要花費更多的金錢才能維持相同的生活水準。經濟學家用物價膨脹(inflation)來描述一般物價持續上升的現象,而物價膨脹率(inflation rate)為物價水準的變動百分比。
Credit Derivatives. Agenda 21.4 CDS Forwards & Options 21.5 Total Return Swaps 21.6 Basket CDS 21.7 CDO.
1 第一章 財務管理概論. 2 財務金融 (Finance) 資金管理的科學與技巧 (The art and science of managing money) 資金管理分為 – 資金運用 (Investment) 實質投資 金融投資 人力資本投資 – 資金籌措 (Financing) 短期融資.
Chapter 7 財務管理概論 劉亞秋‧薛立言 合著 (東華書局, 2007) 第七章 「現金流量折現」的評價觀念 第一節 基本的現值與終值轉換法則 第二節 非整數期間與多次複利的現值 與終值計算 第三節 年金的現值與終值計算.
台灣客家知識治理之研究 -- 以 行政院客委會為例 發表人: 彭安麗 南華大學公共行政與政策研究所助理教授 發表人: 彭安麗 南華大學公共行政與政策研究所助理教授
paper report R96072 黃源鱗 Using Equity Prices to Estimate Default Probabilities ( 使用股票價格計算違約機率 )  More up-to-date  The value of the equity.
選舉制度、政府結構與政 黨體系 Cox (1997) Electoral institutions, cleavage strucuters, and the number of parties.
第十三章 貨幣演進與金融體系 貨幣的功能與本位制度  貨幣的功能 1. 交易媒介-做為大眾交換商品與勞務的媒介。 2. 計價單位-所有物品的價值可以用貨幣表示出來, 而形成所謂的價格。 3. 價值儲存-人們在出售商品或勞務後,先保有貨 幣,待日後有需求時,再取出購買商品。 4. 延遲支付標準-人們先拿了貨品、享受了勞務,
Chapter 2 金融體系概論.
Part 4 廠商與市場 產出與成本 產出與成本 Chapter 10 Economics, 6th, Parkin, 2004, Chapter 10: 產出與成本 [ 第 1 頁 ]
效率與公平 效率與公平 Part 2 Chapter 5 市場如何運作 Economics, 6th, Parkin, 2004, Chapter 5: 效率與公平 [ 第 1 頁 ]
中信證券 海外理財介紹 何謂 PGN?. Principal guaranteed notes 原則保證票券 指交易相對人到期時,至少可獲得事先約定某一 比例的投資本金,而實際的總報酬,則是隨著連 結標的資產價格成長幅度而定。 保本型商品 PGN 可視為零息債券與買入選擇權的 組合,而發行券商依據對資產價格走勢的預期,
© 1998 Addison Wesley Longman, Inc. TM2-1 第2章第2章第2章第2章金融體系概論.
第八章 結構型融資 與衍生性金融商品結合的融資.
Copyright © 2000 Addison Wesley Longman Slide #18-1 Chapter Eighteen BANKING REGULATION.
Copyright © 2010 Pearson Education. All rights reserved. Chapter 11 Economic Analysis of Financial Regulation.
1 第七章 風險管理 風險的要素 – 不確定 – 有損失的可能性. 2 風險的種類 事業風險 (business risk) 與財務風險 (financial risk) 可分散化風險 – 個別風險 – 非系統風險 – 純風險 不可分散化風險 – 市場風險 – 系統風險 – 投機 ( 或價格 ) 風險.
Chapter 14. Regulating the Financial System
Structural Equation Modeling Chapter 6 CFA 根據每個因素有多重指標,以減少 測量誤差並可建立問卷的構念效度 驗證性因素分析.
7 政府對市場的影響 CHAPTER. 7 政府對市場的影響 CHAPTER C H A P T E R C H E C K L I S T 學習本章後,您將能: 解釋課稅對價格與數量的影響,買賣雙方如何負擔稅額, 以及課稅導致缺乏效率 1 解釋價格上限的運作,以及租金上限如何導致住屋短缺、
智勝文化事業有限公司製作 行銷管理 ( 再版 ) 林建煌 著 第六章 組織市場與其購買行為. 智勝文化事業有限公司製作 行銷管理 ( 再版 ) 林建煌 著 組織購買者的類型  製造廠商  中間商  服務性組織  政府組織  非營利機構.
© 2008 Pearson Education Canada11.1 Chapter 11 Economic Analysis of Banking Regulation.
© 1998 Addison Wesley Longman, Inc. TM9-1 第9章第9章第9章第9章金融結構的經濟分析.
Asymmetric Information and Bank Regulation
中央大學。范錚強 1 eB 中的金流問題 國立中央大學. 資訊管理系 范錚強 Tel: (03) mailto: Updated
Chapter 11 Economic Analysis of Banking Regulation.
第12章 團體溝通情境中的領導者.
財務管理概論 劉亞秋‧薛立言 合著 (東華書局, 2007)
Lecture #1 – 市場無所不在 Contemporary Economic Thoughts, Fall 2008 Department of Economics Shih Hsin University Yi-Hsiue Wang.
1 Chapter 6 利率的風險 與期間結構. 2 前 言 本章將探討: 不同利率之間相互的關係以展現利率的全貌 影響利率波動的來源與導因 利率的風險結構 利率的期間結構.
Economic Analysis of Banking Regulation
Chapter 11 Economic Analysis of Banking Regulation © 2005 Pearson Education Canada Inc.
1 The Economics of Financial Regulation Chapter 11.
Chapter 10 Economic Analysis of Financial Regulation.
 Friday Talk: Financial crisis  Course in spring on financial crisis  Chapter 11 &12  Regulation & Industry Structure  Links:  Marginal Revolution.
1 Lecture 20 Economic Analysis of Banking Regulation.
© 2008 Pearson Education Canada11.1 Chapter 11 Economic Analysis of Banking Regulation.
Chapter 11: The Economics of Financial Regulation.
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Regulating the Financial System.
Copyright © 2000 Addison Wesley Longman Slide #18-1 Chapter Eighteen BANKING REGULATION.
© 2004 Pearson Addison-Wesley. All rights reserved 11-1 How Asymmetric Information Explains Banking Regulation 1.Government Safety Net and Deposit Insurance.
Chapter 11 Economic Analysis of Banking Regulation.
Chapter Eighteen Banking Regulation Copyright © 2004 Pearson Education Canada Inc. Slide 18–3 How Asymmetric Information Explains Banking Regulation.
Lecture Notes Banking Regulation Program MM Banking STIE Perbanas.
Copyright © 2010 Pearson Addison-Wesley. All rights reserved. Chapter 11 Economic Analysis of Financial Regulation.
Chapter 10 4th Edition Chapter 11 3 rd Edition Economic Analysis of Banking Regulation.
Chapter 11 Economic Analysis of Banking Regulation.
Copyright © 2014 Pearson Canada Inc. Chapter 10 ECONOMIC ANALYSIS OF FINANCIAL REGULATION.
Chapter 10 4th Edition Chapter 11 3 rd Edition Economic Analysis of Banking Regulation.
ECONOMIC ANALYSIS OF FINANCIAL REGULATION Chapter 11 – EC311 Susanto.
Chapter 10 Economic Analysis of Financial Regulation
Regulating the Financial System
Economic Analysis of Financial Regulation
Chapter 10 Economic Analysis of Financial Regulation
Economic Analysis of Banking Regulation
Economic Analysis of Financial Regulation
Economic Analysis of Banking Regulation
Economic Analysis of Financial Regulation
Presentation transcript:

Copyright © 2010 Pearson Education. All rights reserved. Chapter 11 Economic Analysis of Financial Regulation

Copyright © 2010 Pearson Education. All rights reserved Bank Panic and need for Deposit Insurance 金融市場 free-rider 問題 → bank private loans 存款人因 free rider 問題而不願監督銀行 Bank panics – 來自於經濟蕭條,會導致某些銀行淨值為負,因為排序支 付問題 (sequential service constraint) ,進而發生擠 兌與傳染效果 –19 世紀末至 20 世紀初, 差不多每 20 年一次金融風暴。 。

Copyright © 2010 Pearson Education. All rights reserved Asymmetric Information and Bank Regulation: Government Safety Net Bank panics and the need for deposit insurance: –FDIC( 聯邦存款保險公司 ): short circuits( 短期融通 ) bank failures and contagion effect. –Payoff method.( 支付法 ) –Purchase and assumption method ( 承購法 ) (typically more costly for the FDIC). –FDIC 創建之前平均每年有 2000 家銀行倒閉,之後倒閉 家數減少 15% 。 Other form of government safety net: –Lending from the central bank to troubled institutions (like 2008 subprime crisis)(lender of last resort( 最後貸款者 ).

Copyright © 2010 Pearson Education. All rights reserved Government Safety Net Moral Hazard –increased incentive to taking risks –Depositors do not impose discipline of marketplace (by withdrawing funds). –Financial institutions have an incentive to take on greater risk. –Bet: “Heads I win, Tails the taxpayer loses” Adverse Selection –Risk-lovers find banking attractive. –Depositors have little reason to monitor financial institutions.

Copyright © 2010 Pearson Education. All rights reserved Government Safety Net:Too Big to Fail Government provides guarantees of repayment to large uninsured creditors of the largest financial institutions even when they are not entitled( 不具資格 ) to this guarantee Uses the purchase and assumption method Increases moral hazard incentives for big banks

Copyright © 2010 Pearson Education. All rights reserved Government Safety Net: Financial Consolidation Larger and more complex financial organizations challenge regulation –Increased “too big to fail” problem –Extends safety net to new activities(underwriting, insurance, or real estate), increasing incentives for risk taking in these areas (as has occurred during the subprime financial crisis in ).

Copyright © 2010 Pearson Education. All rights reserved Restrictions on Asset Holdings Attempts to restrict financial institutions from too much risk taking –Bank regulations Promote diversification Prohibit holdings of common stock So onerous and impaired ( 繁複並有損效率 ) –Capital requirements Minimum leverage ratio (for banks)( 最低資本比率 ) Basel Accord: risk-based capital requirements (Basel I And Basel II) Regulatory arbitrage –Prompt corrective action( 迅速糾正措施 )(pg )

Copyright © 2010 Pearson Education. All rights reserved Financial Supervision: Chartering and Examination Chartering( 執照特許 ) (screening of proposals to open new financial institutions) to prevent adverse selection Examinations( 金融檢查 ) (scheduled and unscheduled) to monitor capital requirements and restrictions on asset holding to prevent moral hazard –Capital adequacy –Asset quality –Management –Earnings –Liquidity –Sensitivity to market risk Filing periodic ‘call reports’

Copyright © 2010 Pearson Education. All rights reserved Assessment of Risk Management Greater emphasis on evaluating soundness of management processes for controlling risk( 控管風險 的管理程序是否完好 ) Trading Activities Manual of 1994 for risk management rating based on –Quality of oversight provided –Adequacy of policies and limits for all risky activities –Quality of the risk measurement and monitoring systems –Adequacy of internal controls Interest-rate risk limits –Internal policies and procedures –Internal management and monitoring –Implementation of stress testing and Value-at risk (VAR)

Copyright © 2010 Pearson Education. All rights reserved Disclosure( 揭露 ) Requirements Requirements to adhere to standard accounting principles and to disclose wide range of information The Basel 2 accord and the SEC( 證管會 ) put a particular emphasis on disclosure requirements The Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board Mark-to-market (fair-value) accounting

Copyright © 2010 Pearson Education. All rights reserved Consumer Protection Consumer Protection Act of 1969 (Truth-in- lending Act). Fair Credit Billing Act of 1974.( 公平的信用費 率法案 ) Equal Credit Opportunity Act of 1974, extended in 1976.( 反歧視 ) Community Reinvestment Act.( 放款所有區域 ) The subprime mortgage crisis illustrated the need for greater consumer protection.

Copyright © 2010 Pearson Education. All rights reserved Restrictions on Competition Justified as increased competition can also increase moral hazard incentives to take on more risk. –Branching restrictions (eliminated in 1994) –Glass-Steagall Act (repeated in 1999) Disadvantages –Higher consumer charges –Decreased efficiency

Copyright © 2010 Pearson Education. All rights reserved Table 1 Major Financial Legislation in the United States

Copyright © 2010 Pearson Education. All rights reserved Table 1 Major Financial Legislation in the United States (cont.)

Copyright © 2010 Pearson Education. All rights reserved FIGURE 1 Bank Failures in the United States, 1934–2008 Source:

Copyright © 2010 Pearson Education. All rights reserved The 1980s S&L and Banking Crisis Financial innovation( 金融創新 ) and new financial instruments increased risk taking Increased deposit insurance led to increased moral hazard Deregulation( 自由化 ) –Depository Institutions Deregulation and Monetary Control Act of 1980 –Depository Institutions Act of 1982

Copyright © 2010 Pearson Education. All rights reserved The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 Financial Institutions Reform, Regulatory and Enforcement Act of 1989 Federal Deposit Insurance Corporation and Improvement Act of 1991 –Cost of the bailout( 紓困 ) approximately $150 billion, or 3% of GDP.

Copyright © 2010 Pearson Education. All rights reserved Banking Crises Throughout the World “Déjà vu( 似曾相似 ) all over again” –Deposit insurance is not to blame for some of these banking crises –The common feature of these crises is the existence of a government safety net, where the government stands ready to bail out troubled financial institutions.

Copyright © 2010 Pearson Education. All rights reserved Table 2 The Cost of Rescuing Banks in Several Countries

Copyright © 2010 Pearson Education. All rights reserved Whither( 何去何從 ) Financial Regulation After the Subprime Financial Crisis? Regulation should focus on limiting the agency problems( 代理人問題 ) created by the “originate-to-distribute( 發行到分配 )” business model Increased regulation of mortgage brokers( 房 仲介商增加限制 ) –Tighten licensing requirements –Require to disclose information

Copyright © 2010 Pearson Education. All rights reserved Whither Financial Regulation After the Subprime Financial Crisis? (cont’d) Fewer subprime mortgage products. Regulation of compensation Higher capital requirements

Copyright © 2010 Pearson Education. All rights reserved Whither Financial Regulation After the Subprime Financial Crisis? (cont’d) Additional regulation of privately owned government sponsored enterprises –Fully privatize( 完全私有化 ) them –Completely nationalize( 完全公有 ) them –Leave them as privately owned government sponsored( 私人擁有政府贊助 ) enterprises and Strengthen regulation Reduce their size

Copyright © 2010 Pearson Education. All rights reserved Whither Financial Regulation After the Subprime Financial Crisis? (cont’d) Heightened regulation to limit financial institutions’ risk taking Increased regulation of credit-rating agencies( 信用評等機構 ) –Restrict conflicts of interest( 利益衝突限制 ) Additional regulation of derivatives( 衍生性商 品的規範 ) The danger of overregulation. ( 過度規範的危 險 )

Copyright © 2010 Pearson Education. All rights reserved FIGURE 2 Banking Crises Throughout the World Since 1970 Source: Gerard Caprio and Daniela Klingebiel, “Episodes of Systemic and Borderline Financial Crises” mimeo., World Bank, October 1999.