Suchergebnisse

Analyses the transformations typical of financial globalization which have occurred in the financial markets over the past 25 years. Argues that banking crises arise when the active management of balances encounters currency mismatch problems; when credit is concentrated in certain sectors (for example, oil or real estate) or companies; when real interest rates are high during periods of lower economic growth; when leverage levels are high as a result of rapid privatizations or takeovers; or when there is a combination of these factors. (Original abstract - amended)

Many reforms have taken place in Indonesia following the Asian financial crisis of 1997 - 1998. The government has embarked upon institutional transformation, making the country one of the region's most vibrant democracies. In social, economic, and political areas, Indonesia has seen much progress. Wide reforms have been carried out in all areas of governance, including in the financial sector, and a new development strategy has been adopted for "inclusive" economic development. This paper examines the shift in Indonesia's national economic development strategy from its "exclusive" orientation during the New Order era before the Asian financial crisis, to its "inclusive" orientation after the crisis. It also examines the impact the reforms have had on poverty reduction and the campaign to create a better environment for micro, small, and medium-sized enterprises (MSMEs). The constraints that Indonesia faces in implementing inclusive development, particularly financial inclusion, are also discussed.

AbstractUsing the family stress model and marital bargaining theory, we aimed to investigate how financial stress and financial management roles are associated with both partners' (men's and women's) initial levels and rates of changes in financial disagreements over time. To test this, we used dyadic latent growth curve analyses obtained from 2158 German heterosexual couples over four waves or a 6‐year time span from the Panel Analysis of Intimate Relationships and Family Dynamics dataset. Financial stress and discrepant or unclear financial management roles were associated with higher initial financial disagreements in both partners. Only discrepant financial management roles were associated with lesser declines in women's financial disagreement trajectories. Additionally, in the context of greater financial stress, discrepant financial roles were associated with ever higher initial financial disagreements in women. Practitioners working with couples in financial distress should consider exploring the couple's level of financial stress as well as specialized and discrepant views on financial role division.

Purpose
The purpose of this paper is to analyze the financial friction effect of non-performing loans (NPLs) on financial intermediation (FI) through empirical evidence from the Brazilian experience.


Design/methodology/approach
The authors develop a new variable, financial intermediation flow and a new indicator, FI, both measures of FI. To empirically test FI, the authors use a dynamic panel data framework that draws on 101 banks (December 2000 to December 2015).


Findings
An increase in NPL reduces FI. Thus, NPL amplifies financial friction in FI. This result holds in different time frames, such as the pre-crisis period, the crisis period and the post-crisis period.


Practical implications
The FI measure developed in this study offers the policymakers a possibility to monitor financial stability.


Originality/value
This study adds to this debate by proposing a measure of FI derived from financial flows. This measure allows one to estimate the role of NPL as a financial friction that can pose a threat to financial stability.

In a market-based financial system, banking and capital market developments are inseparable. We document evidence that balance sheets of market-based financial intermediaries provide a window on the transmission of monetary policy through capital market conditions. Short-term interest rates are determinants of the cost of leverage and are found to be important in influencing the size of financial intermediary balance sheets. However, except for periods of crises, higher balance-sheet growth tends to be followed by lower interest rates, and slower balance-sheet growth is followed by higher interest rates. This suggests that consideration might be given to a monetary policy that anticipates the potential disorderly unwinding of leverage. In this sense, monetary policy and financial stability policies are closely linked.

In 2008 financial crisis, stock market turned highly volatile while U.S. government had proposed a series of policies rescuing the economy. This study examines convergence to market efficiency from government financial policies. We find a significant impact of contemporaneous order imbalance on return, while the relation between return and lagged imbalances is insignificant, implying that lagged order imbalances have no predictability on return. From a time-varying GARCH model, we find that explaining power of order imbalance on return declining, implying that volatility plays an important role in return-order imbalance relation. We take a further step to find that there is no strong direct relationship between order imbalances and stock volatility. The story casts on market maker behaviors. Market makers accommodate high inventory levels to mitigate stock volatility on financial policies announcements. An imbalance based trading strategy we develop fails to beat the market. It supports financial policy announcement efficiency.