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Business and Economics > Investments: Stocks

You are looking at 1 - 4 of 4 items for :

  • Type: Journal Issue x
  • Agriculture: Aggregate Supply and Demand Analysis; Prices x
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Cover IMF Working Papers
Internal Capital Markets in Business Groups and the Propagation of Credit Supply Shocks
Ms. Yu Shi
,
Robert M. Townsend
, and
Wu Zhu
Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders’ credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms. We argue that equity exchanges is one channel through which corporate shareholders transmit bank credit supply shocks to the subsidiaries and provide empirical evidence to support the channel.
Keywords:
WP; subsidiary firm; trade credit; bank financing condition; profit margin; Internal capital markets; business groups; bank lending; China; credit supply shocks; business group; Credit; Supply shocks; Bank credit; Stocks; Asset valuation
Cover IMF Working Papers
Bank Behavior in Response to Basel Iii: A Cross-Country Analysis
Mr. Thomas F. Cosimano
and
Ms. Dalia S Hakura
This paper investigates the impact of the new capital requirements introduced under the Basel III framework on bank lending rates and loan growth. Higher capital requirements, by raising banks’ marginal cost of funding, lead to higher lending rates. The data presented in the paper suggest that large banks would on average need to increase their equity-to-asset ratio by 1.3 percentage points under the Basel III framework. GMM estimations indicate that this would lead large banks to increase their lending rates by 16 basis points, causing loan growth to decline by 1.3 percent in the long run. The results also suggest that banks’ responses to the new regulations will vary considerably from one advanced economy to another (e.g. a relatively large impact on loan growth in Japan and Denmark and a relatively lower impact in the U.S.) depending on cross-country variations in banks’ net cost of raising equity and the elasticity of loan demand with respect to changes in loan rates.
Keywords:
WP; loan rate; loan demand; financial crisis; largest bank; Commercial banks; capital constraints; equity-to-asset ratio; expense ratio; bank capital; bank equity; Loans; Stocks; Demand elasticity; Basel III; Global
Cover Regional Economic Outlook, April 2008, Western Hemisphere
Regional Economic Outlook, April 2008, Western Hemisphere
International Monetary Fund. Western Hemisphere Dept.

Abstract

The main focus of this report is the outlook for the region in the face of the downturn now projected for the U.S. economy and the continuing risks that affect the global outlook. Overall the region is better placed than in the past to navigate the current financial turbulence, given reduced vulnerabilities and stronger policy frameworks. Nonetheless, the report points to risks that the global financial stress could curtail capital flows to the region and world commodity prices could fall more than expected. There are also risks arising from rising inflation and rapid private credit growth in a number of countries. The report then explores the policy options facing governments in the region, underscoring the need to preserve the gains of recent years

Keywords:
REO; IMF staff estimate; ECCU aggregate; price; e.o.p. rate; PPP GDP; dollar-weighted GDP; average inflation rates; Inflation; Commodity prices; Food prices; Stock markets; Stocks; Global; Caribbean; Central America; Western Hemisphere; South America; North America; world fuel; world food price; market participant; current liabilities; dividend yield; return distribution; terms of trade; cost of capital; world fuel price shock; equity price volatility; headline inflation rise; price change; world prices of fuel; banking system assets; equity-return movement; food price pressure; food price subcomponent; subcomponents of the CPI; food commodity price; inflation-targeting country; commodity shock
Cover Perspectivas económicas, abril de 2008
Perspectivas económicas, abril de 2008
Las Américas
International Monetary Fund. Western Hemisphere Dept.

Abstract

Este informe se focaliza principalmente en las perspectivas para la región en el contexto de la crisis que se proyecta para la economía de Estados Unidos y los persistentes riesgos que afectan a las perspectivas mundiales. En general, la región está en mejores condiciones que en el pasado para navegar por la actual turbulencia financiera, dado que las vulnerabilidades son menores y se han fortalecido los marcos de política económica. No obstante, el informe señala el riesgo de que la tensión financiera mundial limite los flujos de capitales hacia la región y de que los precios mundiales de las materias primas bajen más de lo previsto. También existen riesgos derivados de la creciente inflación y de la rápida expansión del crédito privado en varios países. El informe explora las opciones de política de que disponen los gobiernos de la región, subrayando la necesidad de preservar los logros alcanzados en los últimos años.

Keywords:
REO; IMF staff estimate; ECCU aggregate; price; e.o.p. rate