Narrow Your Choices

Refine By Countries

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Business and Economics > Banks and Banking

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices x
Clear All Modify Search
Cover IMF Working Papers
Resolving China’s Corporate Debt Problem
Wojciech Maliszewski
,
Mr. Serkan Arslanalp
,
Mr. John C Caparusso
,
Jose M Garrido
,
Mr. Si Guo
,
Mr. Joong S Kang
,
Mr. Waikei R Lam
,
Daniel Law
,
Wei Liao
,
Ms. Nadia Rendak
,
Mr. Philippe Wingender
,
Jiangyan Yu
, and
Ms. Longmei Zhang
Corporate credit growth in China has been excessive in recent years. This credit boom is related to the large increase in investment after the Global Financial Crisis. Investment efficiency has fallen and the financial performance of corporates has deteriorated steadily, affecting asset quality in financial institutions. The corporate debt problem should be addressed urgently with a comprehensive strategy. Key elements should include identifying companies in financial difficulties, proactively recognizing losses in the financial system, burden sharing, corporate restructuring and governance reform, hardening budget constraints, and facilitating market entry. A proactive strategy would trade off short-term economic pain for larger longer-term gain.
Keywords:
WP; construction boom; bond market; credit growth; People's Bank of China; coverage ratio; market forces; Corporate Debt Overhang; Credit; Restructuring; Hardening Budget Constraints; credit boom; credit efficiency; credit financing; shadow credit product; Loans; Credit booms; Solvency; Government liabilities; Global
Cover IMF Working Papers
Banking Competition, Risk, and Regulation
Alexander F. Tieman
and
Wilko Bolt
In a dynamic theoretical framework, commercial banks compete for customers by setting acceptance criteria for granting loans, taking regulatory requirements into account. By easing its acceptance criteria a bank faces a trade-off between attracting more demand for loans, thus making higher per period profits, and a deterioration of the quality of its loan portfolio, thus tolerating a higher risk of failure. Our main results state that more stringent capital adequacy requirements lead banks to set stricter acceptance criteria, and that increased competition in the banking industry leads to riskier bank behavior. In an extension of our basic model, we show that it may be beneficial for a bank to hold more equity than prescribed by the regulator, even though holding equity is more expensive than attracting deposits.
Keywords:
WP; capital adequacy ratio
Cover IMF Working Papers
Financial Liberalization, Bank Market Structure, and Financial Deepening: An Interest Margin Analysis
Mr. Abdourahmane Sarr
The paper shows that commercial banks’ ability to lower deposit interest rates (market power) can increase deposit mobilization. Interest expenses saved can subsidize and lower fees on checking and branching services and thus help attract deposits. United States data illustrates the financial deepening effect of this market power. Commercial banks’ ability to lower deposit interest rates diminishes when their deposits become closer substitutes to nonbank liabilities requiring greater interest rate competition. Lack of bank deposit market power, including through capital account mobility, may lessen financial deepening.
Keywords:
WP; market power; commercial bank; bank deposit; banking industry; Financial liberalization; financial deepening; bank market structure; interest margin; deposit interest rate ceiling; ceiling regulation; price war; interest rate regulation; deposit interest rate market power; market structure; interest market power; deposit market power; regulation in the U.S.; demand slope; deposit demand slope; Deposit rates; Commercial banks; Interest payments; Interest rate ceilings; Loans