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Books > Business & Economics > Industry & industrial studies > Service industries > Financial services industry
This second edition updates and extends the original foundations of
the loanable funds model. It develops a new monetary model of
inside money, which is created by the commercial (or retail) banks,
drawing on the events of 2007/08 that led to the Great Recession
and fragile economy of today. Coronavirus is likely to cause
another downturn of economic activity, from the perspective of late
2020 as this is written. That will represent a long-period of
subpar, anaemic growth, which has not been satisfactorily explained
by the traditional theory in the form of neo-classical analysis.
The reason may lie with the adoption of a body of theory based
primarily on a barter system of exchange but sometimes with one
commodity used as money to try to explain a dynamic, monetary
economy of today. Money has evolved from a system of barter to
become a medium of exchange based on fiat money and credit currency
underpinned by legal tender, and therefore, a creature of law. If
households and firms lose confidence in the banking system, they
can withdraw their deposits in the form of cash as a medium of
exchange, which must be accepted in exchange for goods and services
as legal tender. This book highlights the importance of how money
is created or destroyed endogenously and derives the loanable
supply of funds in conjunction with the demand within a revised
analysis of monetary theory, with a new emphasis on portfolio
theory. It applies critical thinking and the realization of a more
precise formulation of the loanable funds theory to final year and
postgraduate students in particular, with various features
systematically added such as the catastrophe framework and Minsky's
theory of changing states in an attempt to derive a fully dynamic
model. There is a new framework using aggregate demand and supply
analysis to explain inflation. This will be reinforced at each
stage by the inclusion of revised and updated case studies, graphs
and figures to give an international setting and application
This book describes various approaches in modelling financial risks
and compiling ratings. Focusing on emerging markets, it illustrates
how risk assessment is performed and analyses the use of machine
learning methods for financial risk assessment and measurement. It
not only offers readers insights into the differences between
emerging and developed markets, but also helps them understand the
development of risk management approaches for banks. Highlighting
current problems connected with the evaluation and modelling of
financial risks in the banking sector of emerging markets, the book
presents the methodologies applied to credit and market financial
risks and integrated and payment risks, and discusses the outcomes.
In addition it explores the systemic risks and innovations in
banking and risk management by analyzing the features of risk
measurement in emerging countries. Lastly, it demonstrates the
aggregation of approaches to financial risk for emerging financial
markets, comparing the experiences of various countries, including
Russia, Belarus, China and Brazil.
Pricing of export credit is a challenge in the globalised world
trade. Annual premia represent billions of euros or dollars and may
determine competition. This book develops a rigorous new framework
for pricing export credit products, e.g. buyer and supplier credit
insurance and performance and working capital guarantees , based on
well-known financial and actuarial theories. It introduces the
products, the theories and the different data sources in order to
apply the mathematical and financial ideas, e.g. discounting,
risk-neutral valuation and Merton type defaults. It shows the
differences of historical experience and implicit market pricing
assumptions. The well-known OECD Arrangement is used as a benchmark
for some part of the framework. Short code snippets in R are given
in order to re-perform the results and have a basis to try own
ideas. Many unprecedented exhibits give new insights into the
subject matter. The book is targeted at practitioners and actuaries
in the field with a good quantitative background.
This timely book addresses the effects and implications of rapid
technological changes within the financial services industry on
Islamic finance and Islamic banks. Exploring current challenges,
opportunities and threats, the authors provide an overview of how
FinTech can operate within an Islamic context, under the Shari'ah
principles or the Halal framework, for example. Examining the
potential opportunities of Islamic FinTech from a socio-economic
perspective, this edited collection will be of use to anyone
researching FinTech or Islamic Finance as well as practitioners and
policy-makers involved in banking and financial services.
Financial services technology and its effect on the field of
finance and banking has been of major importance within the last
few years. The spread of these so-called disruptive technologies,
including Blockchain, has radically changed financial markets and
transformed the operation of the industry as a whole. This is the
first multidisciplinary handbook of FinTech and Blockchain covering
finance, economics, and legal aspects globally. With comprehensive
coverage of the current landscape of financial technology alongside
a forward-looking approach, the chapters are devoted to the spread
of structured finance, ICT, distributed ledger technology (DLT),
cybersecurity, data protection, artificial intelligence, and
cryptocurrencies. Given an unprecedented 2020, the contributions
also address the consequences of the current emergency, and the
pandemic stroke, which is revolutionizing social and economic
paradigms and heavily affecting Fintech, Blockchain, and the
banking sector as well, and would be of particular interest to
finance academics and researchers alongside banking and financial
services professionals.
The investment industry is increasingly a global business. This is
partly due to the needs of multinational corporations to obtain
financing in more than one nation. Cross-border investments and
acquisitions continue at a rapid pace. The asset management
business is becoming larger, more complex and more competitive,
while hedge funds and private equity dominate large portions of the
industry. This carefully-researched book is a complete investments,
securities and asset management market research and business
intelligence tool--everything you need to know about the business
of investments, including: investment banking, stock brokers,
discount brokers, online trading, trends in financial information
technologies, asset management, stock ownership by individuals and
households, 401(k)s and pension plans, mutual funds, ETFs, ECNs and
exchanges. The book includes vital industry statistics; a glossary;
industry contacts such as industry associations and government
agencies; and our profiles of 350 leading global firms in the
investment and asset management business, both public and private.
You'll find a complete overview, industry analysis and market
research report in one superb, value-priced package.
This book provides an overview of the historical financial reforms
and regulatory changes in China, highlighting the background to and
causes of changes in the income structure of China's banks. It also
investigates ongoing concerns with regard to banking
diversification in China, and its consequences, amid the global
trend of banks' shift to non-traditional businesses. Focusing on
three critical aspects of bank-income diversification, namely the
effects on profitability, risk level, and efficiency, it employs
the concept of systemically important banks, which describes the
scale and degree of influence a bank has in global and domestic
financial markets. More importantly, rather than replicating
techniques employed in the research on developed markets, it
applies several improved methodologies to address bank
diversification in the specific context created by China's unique
institutional background and data characteristics, such as GMM-type
threshold models and stochastic frontier analysis with the within
maximum likelihood estimation. Shedding new light on the current
status of income diversification in the Chinese banking sector,
this book is a valuable resource for readers in fields such as
banking and financial stability. It will also help banking
professionals and financial regulatory authorities to better
understand the reform of China's financial industry and the future
direction of banking.
This book offers new insights and perspectives on the financial and
banking sector in Europe with a special focus on Central and
Southeastern European countries. Through quantitative and
qualitative analysis of primary sources and datasets, the book
examines both the financial development and performance of the real
sector of the economy and the impact and involvement of the banking
sector. The contributions offer new insights into current financial
innovations and discuss best practices in innovative financial
solutions. They also highlight new perspectives in finance and
analyze characteristic problems in the real and banking sectors in
various European countries. The insights and financial solutions
presented in this book will be of interest to scholars of finance
and financial economics as well as practitioners in the financial
industry and policy makers.
This short monograph examines the tense relationship between
central bank independence and democratic legitimation, which has
changed as the European Central Bank (ECB) has been entrusted with
new tasks and faced unprecedented challenges. The financial and
sovereign debt crisis, in particular, has affected the ECB's
position within the Economic and Monetary Union without substantial
changes in the Union's legal framework. However, the evolution of
an institution primarily obligated to maintain price stability into
an actor involved in sustaining financial stability, performing
banking supervision and supporting economic policy raises the
question of whether the high level of autonomy granted to the ECB
is justified with regard to the principle of democracy that demands
adequate accountability and control. This book identifies
requirements for the democratic legitimation of central bank action
in relation to specific tasks. Further, it analyses other scales of
independence encountered in EU law in order to allow readers to
gain a better conceptual understanding of central bank
independence.
Industry 4.0 has spread globally since its inception in 2011, now
encompassing many sectors, including its diffusion in the field of
financial services. By combining information technology and
automation, it is now canvassing the insurance sector, which is in
dire need of digital transformation. This book presents a business
model of Insurance 4.0 by detailing its implementation in
processes, platforms, persons, and partnerships of the insurance
companies alongside looking at future developments. Filled with
business cases in insurance companies and financial services, this
book will be of interest to those academics and researchers of
insurance, financial technology, and digital transformation,
alongside executives and managers of insurance companies.
This book exemplifies the potential of FinTech to deliver important
economic and societal gains, such as enhancing competition and
financial inclusion to deliver tailored financial products and
services at more affordable prices and at greater convenience. The
emergence of FinTech directly challenges the business models of
incumbent financial intermediaries like banks, which are adapting
by developing their own FinTech offerings and partnering with
FinTech and large technology firms. FinTech also constitutes both
known and unknown risks to financial stability and challenges
regulators to evaluate whether existing regulations are sufficient.
The emergence of FinTech as a global phenomenon requires insightful
cross-country analysis and different perspectives to evaluate its
development and associated opportunities and challenges. This book
will be of interest to practitioners, regulators and students of
this essential enabling technology that is a major component of the
Fourth Industrial Revolution.
Humanitarian crises have become more frequent, complex and
protracted. If current trends continue, it is estimated that by
2030, humanitarian assistance costs could increase to $50 billion
per year. By then, two-thirds of the world's poor are at risk of
living in conflict-affected countries. To bridge the gap,
humanitarian organizations are increasingly utilizing innovative
financing tools such as impact bonds, faith-based finance and other
innovative financial products and services to mobilize greater
funding to address humanitarian needs. This book is among the first
to assess a set of innovative financing mechanisms that have been
transforming the humanitarian sector and explores their key
opportunities, challenges and future prospects. This book will be
of interest to academics, practitioners, humanitarian organizations
and policy makers involved in humanitarian financing and to the
humanitarian sector in general.
As drivers of climate action enter the fourth decade of what has
become a multi-stage race, Net Zero has emerged as the dominant
organizing principle. Hundreds of corporations and investors
worldwide, together responsible for assets in the tens of trillions
of dollars, are lining-up for the UN Race to Zero. This latest
stage in the race to save civilization from heat, drought, fires,
and floods, is defined by steering toward zeroing out greenhouse
gas emissions by 2050. Settling Climate Accounts probes the
practice of Net Zero finance. It elucidates both the state of play
and a set of directions that help form judgements about whether Net
Zero is going to carry climate action far enough. The book delves
into technical analyses and activates the reader's imagination with
narrative accounts of climate action past, present, and future.
Settling Climate Accounts is edited and authored by Stanford
University faculty and researchers. The first part of the book
investigates the rough edges of Net Zero in practice, exploring
questions of hedging risk, Scope 3 emissions, greenwashing, and the
business of asset management. The second half looks at states,
markets, and transitions through the lenses of blended finance,
offsets, debt, and securitization. The editors tease out possible
solutions and raise further questions about the adequacy and reach
of the Net Zero agenda. To effectively navigate the road ahead, the
editors call out the need for accountability and ask: who is in
charge of making Net Zero add up? Settling Climate Accounts offers
context and foundation to ground the rapidly evolving practice of
Net Zero finance. Targeted at seasoned practitioners, newly
activated leaders, educators, and students of climate action the
world over, this book embraces the complexity of climate action
and, in so doing, proposes to animate and drive hope.
The financial markets have undergone a significant development
process, both qualitatively and quantitatively, and partly induced
by major pushes for globalization and deregulation. In this
context, finance has taken on an increasingly central role for
companies and is now on par with production and sales, which have
always been the cornerstones of business management. The effects of
these structural and functional changes are not limited to the way
companies operate, but also imply a change in corporate cultures;
one consequence of this phenomenon is the large percentage of
managers from the world of finance at the top tiers of corporate
organizations. Moreover, environmental turbulence has forced
companies to increasingly face negative situations characterized by
economic and financial imbalances that may require far-reaching
strategic changes. The purpose of this book, therefore, is to
investigate the possible financial strategies that companies in
distress can adopt; in this regard, it approaches financial
strategies as opportunities to resolve and prevent difficult
situations for the company. After having systematized the financial
strategies and policies used in the governance of companies, the
book analyzes both crises and turnaround processes, describing the
path until the financial balance is restored. Finally, the authors
analyze essential tools for the financial management of companies
in trouble, focusing in particular on operational tools for
managing the crisis, the recovery plan, and its monitoring.
This book discusses ideas for stakeholders to develop strategies to
access and use financial products and services such as deposits,
loans, and fund transfer mechanism, insurance, payment services,
and intermediaries, distribution channels at economical prices in
order to cater to the needs of the poor and underprivileged people.
Financial inclusion ensures ease of access, availability, and usage
of the financial products and services to all the sections of the
society. The book will help in recognizing the role of financial
inclusion as one of the main drivers in reducing income inequality
and thus supporting sustainable economic growth of the countries,
especially of an emerging economy. The book provides conceptual and
practical ideas from the practitioners, best practices from the
experts, and empirical views from the researchers on the best
practices and how to mitigate the challenges and issues plaguing
the development of the financial inclusion.
For many academics, students, and professionals, the field of
commodities is a black box. This book explores commodities in a
holistic manner, presenting concepts from a multidisciplinary
business and financial perspective, and offering a panoramic view
of the global commodity business and markets. In this book, the
author presents core issues related to global commodities with
recent data including COVID-19. The book introduces the key
physical commodities traded globally and some related issues such
as the global supply chain, global trading, transportation,
storage, and how to finance global commodity trades. Then, it
discusses how global commodity businesses and traders manage global
risks related to commodity production (generation or extraction),
transportation, storage, the final delivery, and currency exchange.
Additionally, the book discusses financial commodities, the origins
of global commodity derivatives and exchanges, the rationale behind
the birth of commodity futures and trading, hedging, speculation,
financialization, and manipulation of commodity markets, and how
financial trading is executed in real life. In the last section,
the author also discusses sustainability issues related to global
commodities and the financial valuation aspects of the global
commodity businesses supported by examples from real cases with
recent data.
This book provides a critical assessment of the development of the
Stewardship Code 2020, which sets out principles regarding the role
of institutional investors in corporate governance. It discusses
how the regulatory framework for stewardship evolved before and
after the financial crisis, and how that evolution resulted in the
2020 Code. It then critiques the Code from a practical and academic
perspective, as well as evaluating the wider regulatory framework;
in particular, the position of the FRC (ARGA). The book concludes
by offering insight into different pathways that the evolution of
stewardship may continue to take. Stewardship Codes modelled on the
U.K.'s original 2010 version have been introduced in numerous
markets and as such the book will be relevant for an international
audience of academics, regulators and policymakers in financial
regulation, investment regulation and financial services.
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