Browsing by Subject "kustannukset"

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  • Koskela, Erkki; Stenbacka, Rune (2000)
    Suomen Pankin keskustelualoitteita 12/2000
    We address the question of how lending market competition, measured by the bargaining power of banks, affects the agency costs of debt finance.It is shown that intensified lending market competition will lead to lower lending rates and investment return distributions which are shifted towards lower, but less risky returns.Consequently, it follows that increased lending market competition will reduce the agency cost of debt financing.Hence, our analysis does not lend support to the commonly held view that there would be a trade-off between more intensive lending market competition and higher agency costs of debt finance.
  • Kivistö, Jarkko (2012)
    Bank of Finland bulletin. Economic outlook 3
    This article discusses the development of housing prices in Finland, with a special focus on the relationship between rents and housing purchase prices (rent-to-price ratio), which is analysed against a constructed benchmark of the user costs of investors or homeowners. A comparison of the rent-to-price ratio and time series of user costs indicates that the development of housing prices relative to rents has been broadly consistent with the fall in housing user costs. The key determinants of user cost dynamics are house price expectations and level of interest rates. The interest rate fall, in particular, has had a significant impact on the reduction in user costs and, hence, housing prices. However, the increase in housing prices relative to developments in household income has been fairly moderate.
  • Newby, Elisa; Railavo, Jukka; Ripatti, Antti (2011)
    Bank of Finland bulletin. Economic outlook 3
    The purpose of economic forecasts is to support economic agents decision-making by providing a coherent picture of the present state of the economy and the outlook for the future. Since 2004, a key tool for preparing the Bank of Finland s forecast has been the Aino model.1 It is employed as a tool for integrating forecast information. The new version of the Aino model was introduced in the preparation of the March 2010 forecast. This article describes the features of the model and its use in the preparation of forecasts.
  • Hasan, Iftekhar; Malkamäki, Markku (2000)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 20/2000
    This paper investigates the existence and extent of economies of scale and scope among stock exchanges.Evidence from 38 exchanges in 32 countries and 4 continents around the world for the years 1989-1998 indicates the existence of significant economies of scale and scope.The degree of such economies however differs by size of exchange and region.The largest stock exchanges show an increasing trend of cost effectiveness.Exchanges in North America and Europe report substantially larger economies of scale than those in the Asia-Pacific regions. Keywords: stock exchanges, mergers, regional alliances, economies of scale
  • Francis, Bill; Hasan, Iftekhar; Song, Liang (2012)
    Bank of Finland Research Discussion Papers 12/2012
    Published in Journal of Financial Research, Volume 35, Issue 3, October 2012: 343-374
    We investigate how borrowers corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with respect to loan amount, maturity, collateral requirements, and spread. Firm-level and country-level corporate governance are substitutes in writing and enforcing financial contracts. We also find that the distinctiveness of borrowers characteristics affect the relation between firm-level corporate governance and loan contracting terms. Our findings are robust, irrespective of types of regression methods and specifications. JEL Classification: G20, G30, G31, G34, G38.
  • Malkamäki, Markku (1999)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 4/1999
    This is the first paper that examines economies of scale in stock exchanges.The data employed in the study include cost and output statistics for 37 stock exchanges in four continents around the world for the year 1997.I estimate two traditional cost functions and find that ray (overall) scale economies exist only in the very large stock exchanges but that there are significant scale economies with respect to one of the outputs, ie the processing of trades.On the other hand, there are not equally clear scale advantages related to activities involving company-specific information.There are thus opposing forces, some tending to increase standardization and scale and others favouring the continuization of more localized facilities.The outcome of increasing competition may be not be the amalgamation of exchanges but instead the centralization of certain functions, eg the trading function, and continued realization of others on a decentralized basis.There is nonetheless an obvious incentive for closer and deeper cooperation between European stock exchanges.
  • Korhonen, Kari (2004)
    Euroopan unionissa panostetaan siihen, että arvopaperikauppojen selvitys- ja toimitusprosessit toimisivat tulevaisuudessa nykyistä kitkattomammin ja että ulkomaisten arvopapereiden hankintakustannukset pienenisivät.Tämä edellyttää suuria rakennemuutoksia näihin prosesseihin ja sääntelyn modernisoimista. Miksi arvopaperikaupan selvitysja toimitusprosessit ovat tärkeitä?
  • Peresetsky, Anatoly (2010)
    BOFIT Discussion Papers 1/2010
    Published in Macroeconomics and Finance in Emerging Market Economies, Volume 6, Issue 1, 2013: 88-113 as "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models". Other author: Subal Kumbhakar
    The Kazakhstan banking system is increasingly viewed as more advanced than the Russian system. Kazakhstan adopted the International Accounting System (IAS) in 2003 and the Basel II norms in 2005, while Russia has yet to fully adopt either IAS or Basel II. In this paper, bank data for 2002-2006 are used to estimate models of bank cost efficiency. In contrast to most previous papers, no significance difference is found for the average cost efficiency scores of banks for the two countries during 2002-2006. How banks are ranked for efficiency depends upon the chosen model (input and output sets). An interesting insight is the finding that most banks in both countries are below optimal size.
  • Fang, Yiwei; Hasan, Iftekhar; Marton, Katherin (2011)
    Bank of Finland Research Discussion Papers 5/2011
    Published in Economics of Transition, Volume 19, Issue 3, July 2011: 495-520
    This study examines the cost and profit efficiency of banking sectors in six transition countries of South-Eastern Europe over the period 1998 2008. Using the stochastic frontier approach, our analysis reveals that the average cost efficiency of SEE banks is 68.59% and the average profit efficiency is 53.87%. The second-stage regressions on the determinants of bank efficiency further show that foreign banks are associated with higher profit efficiency but moderately lower cost efficiency. Government banks are associated with lower profit efficiency. The efficiency gap between foreign banks, domestic private banks and government banks, however, has narrowed over time. We also find that the degree of individual banks competitiveness has a positive association with both cost and profit efficiency. Finally, institutional development, proxied by progress in banking reforms, privatization and corporate governance restructuring, also has a positive impact on bank efficiency.
  • Deli, Yota; Delis, Manthos D.; Hasan, Iftekhar; Liu, Liuling (2016)
    Bank of Finland Research Discussion Papers 23/2016
    Formal enforcement actions issued against banks for violations of laws and regulations related to safety and soundness can theoretically have both positive and negative effects on the terms of lending. Using hand-collected data on such enforcement actions issued against U.S. banks, we show that they have a strong negative effect on price terms (loan spreads and fees) for corporate loans and a positive one on non-price terms (loan maturity, size, covenants, and collateral). The results also indicate that in the absence of enforcement actions, the cost of borrowing during the subprime crisis would have been much higher, while punished banks intensify use of collateral.
  • Toivanen, Mervi (2006)
    Bank of Finland. Financial market report 03
    Banks' aggregate expenses rose in the first half of 2006. This development is currently disguised by banks' high income, as a result of favourable developments in net fee income and net interest income. Overall, banks' operating profits continued to increase in January June 2006.
  • Hasan, Iftekhar; Wu, Qiang; Zhang, Hao; Hoi, Chun-Keung (Stan) (2014)
    Bank of Finland Research Discussion Papers 3/2014
    Published in Journal of Financial Economics, 113 (2014) 109-130
    We find that firms with greater tax avoidance incur higher spreads when obtaining bank loans. This finding is robust in a battery of sensitivity analyses and in two quasi-experimental settings including the implementation of Financial Accounting Standards Board Interpretation No. 48 and the revelation of past tax sheltering activity. Firms with greater tax avoidance also incur more stringent non-price loan terms, incur higher at-issue bond spreads, and prefer bank loans over public bonds when obtaining debt financing. Overall, these findings indicate that banks perceive tax avoidance as engendering significant risks. JEL Classification: G21; H26 Keywords: Tax avoidance; Cost of bank loans; Information risk; Agency risk; Audit risk; FIN 48
  • Niinimäki, Juha-Pekka; Mälkönen, Ville (2009)
    Bank of Finland Research Discussion Papers 16/2009
    Published in Journal of Financial Stability, Volume 8, Issue 2, April 2012: 84-95
    This paper examines blanket guarantee and restructuring decisions in respect of a multinational bank (MNB) using Nash bargaining, when the threat of a panic motivates countries to take decisions quickly. The failure of the bank would cause unevenly distributed externalities between the countries concerned, which influences restructuring incentives. In equilibrium, the bank is either liquidated or one or both of the countries recapitalizes it. The partition of the recapitalisation costs is sensitive to the country-specific benefits and costs from recapitalisation, panics and liquidation. The home regulator benefits from the privilege of being the only entity that can legally liquidate the MNB. Rational expectations regarding the bargaining result affect the incentives to declare a blanket guarantee.
  • Kaaresvirta, Juuso; Koivu, Tuuli (2008)
    BOFIT Online 2008/1
    China was able to combine slow inflation with very rapid economic growth for more than a decade. Finally, in 2007 inflation started to accelerate and there are a number of factors that may increase the pressure on China's price level in the near future. Most importantly, money supply growth is expected to remain rapid due to the ballooning foreign currency inflows. In addition, according to some estimates, economic growth has accelereated above its long-term potential and also a number of structural factors are likely to push production costs up. Counterbalancing part of the rising costs, productivity growth has somewhat accelerated during recent years. With low cost levels and fastly growing exports, China is believed to have exported deflation into its trading partners in recent years. However, due to the fact that the direct impacts of globalisation on inflation in the advanced economies have been moderate, also the effect of a possible rise in China's cost leve! l on inflation in eg euro area is expected to remain small. However, the indirect impacts on price dynamics are much more difficult to forecast. Keywords: China, inflation, monetary policy
  • Laisaari, Mauno (1946)
    Bank of Finland. Monthly Bulletin 20 ; 10-12 ; October-December
  • Kopsakangas-Savolainen, Maria; Takalo, Tuomas (2012)
    Bank of Finland Research Discussion Papers 32/2012
    Published in Review of Network Economics
    We build a simple model to study service fee competition between an incumbent and an independent ATM deployer, and its optimal regulation. We use the model to analyze an actual regulation of such a market by competition authorities in Finland. We find that socially optimal first-best fees would imply negative profits for the independent deployer, calling for a Ramsey regulation. While the Finnish regulation pushes the foreign fee downwards towards its socially optimal level, the regulated fees are likely to remain too high from the welfare point of view. In contrast with the actual regulation, it would be essential to regulate the independent deployer's interchange fee, as the incumbent deployer internalizes the effect of its foreign fee on consumer usage of the rival's network and has little incentive for foreclosure.
  • Francis, Bill; Hasan, Iftekhar; Wu, Qiang; Koetter, Michael (2012)
    Bank of Finland Research Discussion Papers 14/2012
    Published in Journal of Financial Research, Volume 35, Issue 4, December 2012: 521-552
    We investigate the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and nonprice loan terms (e.g., interest rates, collateral, covenants, and performance-pricing provisions) are more favorable, and syndicated loans comprise more lenders. In addition, board size, audit committee structure, and other board characteristics influence bank loan prices. However, they do not consistently affect all nonprice loan terms except for audit committee independence. Our study provides strong evidence that banks tend to recognize the benefits of board monitoring in mitigating information risk ex ante and controlling agency risk ex post, and they reward higher quality boards with more favorable loan contract terms. JEL Classification: G21, G34
  • Gu, Xian; Hasan, Iftekhar; Lu, Haitian (2019)
    Comparative Economic Studies 3 ; September
    Using a comprehensive dataset of corporate lawsuits in China, we investigate the implications of corporate misconduct on the cost of private debt. Evidence reveals that firms involved in litigations obtain subsequent loans with stricter pricing terms, 15.1 percent higher loan spreads, than non-litigated borrowers. Strong political connection and repeated relationship help to flatten the sensitivity of loan pricing to litigation. Nonbank financial institutions react in stronger manner to corporate misconduct than traditional banks in pricing loans. Overall, we show that private debt holders care about borrowers’ wrongdoing in the past.
  • Ambrocio, Gene; Juselius, Mikael (2020)
    BoF Economics Review 2/2020
    The main problem facing policymakers during the corona virus pandemic is how to mitigate its humanitarian and economic costs. Doing so invariably involves trading off some costs against others as well as short-term against longer-term consequences. We provide an overview of economic literature that is relevant for understanding these trade-offs in the context of the current pandemic. We also discuss a range of fiscal measures that can be adopted with the aim of achieving the preferred trade-offs at lowest cost.
  • Leinonen, Harry (2011)
    Bank of Finland Research Discussion Papers 3/2011
    Published in European Competition Journal, Volume 7, No 3, December 2011: 527-557
    Cards and cash are competing payment instruments at point-of-sale. The twosided market platform theory, based on general benefit assumptions, supports the use of multilateral interchange fees for card payments as a means of promoting the use of cards. However, analysis of the issue from the concrete processing cost viewpoint leads to the opposite conclusion: collection of debit card interchange fees by issuers results in subsidisation of cash and so actually promotes the use of cash instead of cards. Banks use card interchange revenues to cover cash distribution costs. For merchants, interchange fees increase payment costs and thus reduce the possibilities to pass through to customers the cost savings flowing from card efficiency. Moreover, because of high merchant fees due to high interchange fees, merchants are also more reluctant to accept payment cards. An MIF based on the tourist level approach will result in all parties being indifferent between cash and cards and thereby delay the realisation of the cost benefits of increased debit card usage. The resent actions of authorities to increase transparency and reduce cross-subsidisation seem to point in the right direction towards more efficient resource allocation in payments.