Browsing by Subject "hajautus"

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  • Berger, Allen N.; Hasan, Iftekhar; Korhonen, Iikka; Zhou, Mingming (2010)
    BOFIT Discussion Papers 9/2010
    Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and poor performance. This paper addresses this important question by evaluating the empirical relationship between diversification strategies and the risk-return tradeoff in banking. Our data set covers Russian banks during the 1999-2006 period and finds somewhat mixed results. Specifically, we find that banks performance tends to be non-monotonically related to their diversification strategy. The marginal effects of focus indices (inverse measures of diversification) on performance are nonlinearly associated with the level of risk and foreign ownership. A focused strategy is found to be associated with increased profit and decreased risk only up to a certain threshold. Additionally, when foreign ownership is either very high or very low, banks tend to benefit more from being diversified. This analysis provides important strategic and policy implications for bank managers and regulators in Russia as well as in other emerging economies.
  • Francis, Bill B.; Hasan, Iftekhar; Sun, Xian (2006)
    Bank of Finland Research Discussion Papers 24/2006
    Julkaisun kansilehdellä nimi Xian Sun on muodossa Zian Sun. Published in Journal of Banking & Finance, Volume 32, Issue 8, August 2008, pp. 1522-1540.
    Using theories of internal capital markets, this paper examines the link between financial market integration and the value of global diversification.Based on a sample of 1,491 completed cross-border mergers and acquisitions (M&As) conducted by US acquirers during the 1990-2003 period, we find that, in general, US shareholders gain significant positive abnormal returns following the announcement of the merger/acquisition.Specifically, firms that acquire/merge with targets from countries with financially segmented markets experience significantly higher positive abnormal returns than those that acquire/merge with targets from countries with financially integrated capital markets.We find that the significantly higher positive returns are driven particularly by deals between firms from unrelated industries.These firms with higher announcement returns are also characterized by positive and significant post-merger operating performance.This finding is consistent with our event study results and suggests that the overall improvement in the merged firms' performance is likely due to the influx of internal capital from wholly integrated acquirers to segmented targets, firms that, on average are usually faced with higher capital constraints. Keywords: financial market integration, global diversification, internal capital markets, mergers, acquisitions JEL classification numbers: G15, G31, G34
  • Solanko, Laura; Tekoniemi, Merja (2002)
    BOFIT Online 2002/4
    Artikkelissa tutkitaan Venäjän fiskaalifederalismin kehitystä 1990-luvulta nykypäivään.Neuvostoliiton hajoamisen jälkeisenä aikana entisten neuvostotasavaltojen itsenäisyyspyrkimykset olivat yleisiä ja tämä heijastui myös fiskaalifederalistisiin suhteisiin. Koko 1990-luku pyrittiin erilaisten virallisten ja epävirallisten sopimusten avulla vallan ja vastuiden määrittämiseen keskuksen ja alueiden välillä, mikä teki fiskaalisfederalistisen järjestelmän sekavaksi.Aluepolitiikka ei kuulunut hallituksen prioriteetteihin muuten kuin maan yhtenäisyyden osalta.Vuosikymmenen puolivälistä alkaen alueiden fiskaalista itsenäisyyttä lisättiin ja aluetukia pyrittiin kanavoimaan enemmän virallisten kanavien, lähinnä Aluetukirahaston, kautta.Edelleenkin Venäjän fiskaalifederalistiset suhteet kaipaavat kuitenkin selkeyttä, läpinäkyvyyttä, ennustettavuutta, tasapuolisuutta ja kovia budjettirajoitteita.Vuosikymmenen lopun kehittämissuunnitelmat vaikuttavat tässä suhteessa lupaavilta. Asiasanat: Venäjä, fiskaalifederalismi, verotus, Kiina
  • Westman, Hanna (2012)
    Bank of Finland. Financial market report 2
    The High-level Expert Group appointed by European Commissioner Michel Barnier and chaired by Bank of Finland Governor Erkki Liikanen on reforming the structure of the EU banking sector submitted its final report at the beginning of October 2012. The Group's recommendation consists of five proposals, of which the most important is the separation of activities within banking groups.
  • Westman, Hanna (2012)
    Suomen Pankki. Rahoitusmarkkinaraportti 2
    Komissaari Michel Barnierin asettama, pääjohtaja Erkki Liikasen johtama EU:n pankkisektorin rakenteiden uudistamista pohtinut korkean tason työryhmä jätti loppuraporttinsa lokakuun 2012 alussa.33 Työryhmän suositus koostuu viidestä ehdotuksesta, joista merkittävin on toimintojen eriyttäminen pankkikonsernin sisällä.
  • Leinonen, Harry; Lumiala, Veli-Matti; Sarlin, Riku (2002)
    Suomen Pankin keskustelualoitteita 23/2002
    Payment systems are undergoing rapid and fundamental changes stimulated largely by technological progress especially distributed network technology and real-time processing.Internet and e-commerce will have a major impact on payment systems in the future.User demands and competition will speed up developments. Payment systems will move from conventions that were originally paper-based to truly network-based solutions. This paper presents a solution - E-Settlement - for improving interbank settlement systems.It is based on a decentralised approach to be fully integrated with the banks' payment systems. The basic idea is that central bank money, the settlement cover, is transferred as an encrypted digital stamp as part of the interbank payment message.The future payment systems would in this model operate close to the Internet/e-mail concept by sending payment messages directly from the sending bank's account/payment server to the system of the receiving bank with immediate final interbank settlement without intervening centralised processing.Payment systems would become more efficient and faster and the overall structure would be come straightforward.The E-Settlement and network-based system concept could be applied with major benefits for correspondent banking, ACH and RTGS processing environments. In order to assess this novel idea the Bank of Finland built a prototype of the E-Settlement model.It consist of a group of emulated banks sending payments to each other via a TCP/IP network under the control of a central bank as the liquidity provider and an administration site monitoring the system security. This paper contains an introduction to network-based payment systems and E-Settlement, the specifications of the E-Settlement model and the description, results and experiences of the actual E-Settlement prototype. Key words: network-based payment systems, settlement systems, interbank settlement, payment system integration
  • Francis, Bill B.; Hasan, Iftekhar; Küllü, A. Melih; Zhou, Mingming (2018)
    Economic Systems 1
    The paper investigates whether diversification/focus across assets, industries and borrowers affects bank performance when banks’ abilities (screening and monitoring) are considered. The initial results show that diversification (focus) at the asset, industry and borrower levels is expected to decrease (increase) returns. However, once banks’ screening and monitoring abilities are controlled for, the effect of diversification/focus either gets weaker or disappears. Further, in some cases, these abilities enhance banks’ long-run performance, but in others they prove to be costly, at least, in the short run. Thus, the level of monitoring and screening abilities should be taken into consideration in understanding, planning and implementing diversification/focus strategies.
  • Francis, Bill B.; Hasan, Iftekhar; Kostova, Gergana L.; Ben Naceur, Sami (2020)
    Asia-Pacific Journal of Financial Studies 2
    This paper tests how capital markets value the international diversification of banks in good and in bad economic times by investigating changes in domestic and foreign sovereign debt ratings before and during the European sovereign debt crisis. Tracing 320 European banks in 29 countries and 226 credit rating announcements for European sovereigns between 1 January 2001 and 15 August 2012, we show that the market values banks with access to foreign funds. Despite occasional adverse effects immediately following negative news regarding sovereign credit rating changes, international diversification was found to be beneficial to European banks, especially during periods of distress.
  • Berger, Allen N.; Hasan, Iftekhar; Zhou, Mingming (2010)
    BOFIT Discussion Papers 4/2010
    Published in Journal of Banking & Finance, Volume 34, Issue 7, July 2010, Pages 1417–1435.
    This paper investigates the effects of focus versus diversification on bank performance using data on Chinese banks during the 1996-2006 period. We construct a new measure, economies of diversi-fication, and compare the results to those of the more conventional focus indices, which are based on the sum of squares of shares in different products or regions. Diversification is captured in four dimensions: loans, deposits, assets, and geography. We find that all four dimensions of diversifica-tion are associated with reduced profits and higher costs. These results are robust regardless of al-ternative measures of diversification and performance. Furthermore, we observe that banks with foreign ownership (both majority and minority ownership) and banks with conglomerate affiliation are associated with fewer diseconomies of diversification, suggesting that foreign ownership and conglomerate affiliation play an important mitigating role. This analysis may provide important implications for bank managers and regulators in China as well as in other emerging economies. JEL classification: G21; G28; G34 Keywords: Diversification; focus; efficiency; Chinese banking
  • Solanko, Laura; Tekoniemi, Merja (2005)
    BOFIT Online 2005/5
    The paper gives a brief overview of the evolving fiscal federalist relations in post-Soviet Russia from the early 1990s up to recent changes in 2004.Since the initial period of disintegration and the parade of sovereignties in the mid-1990s, the tide has clearly turned in favour of central power.The authors describe and discuss the main administrative reforms in this area initiated during Putin s presidency.The paper also offers a characterisation of regional finances in terms of revenues, expenditures and transfers in recent years.The tendency towards recentralising economic and political decision-making is clearly observed. Key words: Russia, fiscal federalism, regional policy
  • Juselius, Mikael; Tarashev, Nikola (2022)
    Bank of Finland Research Discussion Papers 4/2022
    A parsimonious extension of a well-known portfolio credit-risk model allows us to study a salient stylized fact – abrupt switches between high- and low-loss phases– from a risk-management perspective. As uncertainty about phase switches increases, expected losses decouple from unexpected losses, which reflect a high percentile of the loss distribution. Banks that ignore this decoupling have shortfalls of loss-absorbing resources, which is more detrimental if the portfolio is more diversified within a phase. Likewise, the risk-management benefits of improving phase-switch forecasts increase with diversification. The analysis of these findings leads us to an empirical method for comparing the degree of within-phase default clustering across portfolios.