Handbook of International Banking

Cover......Page 2
Contents......Page 6
Figures......Page 10
Tables......Page 12
Exhibits......Page 14
Contributors......Page 16
Preface......Page 30
PART I The Globalization of Banking......Page 32
1 INTRODUCTION......Page 34
2 INTERNATIONALIZATION, SECURITIZATION AND DERIVATIZATION......Page 37
3 PATTERNS OF CORPORATE FINANCING AND FINANCIAL SYSTEMS CONVERGENCE......Page 42
4 GLOBALIZATION, WTO AND GATS......Page 48
5 TRENDS IN CORPORATE GOVERNANCE......Page 49
6 WHERE DO WE GO FROM HERE?......Page 51
REFERENCES......Page 55
1 INTRODUCTION......Page 58
2 THEORIES OF MULTINATIONAL BANKING......Page 62
3 MULTINATIONAL ORGANIZATIONAL FORMS......Page 70
4 THE PERFORMANCE OF MULTINATIONAL BANKS......Page 80
5 THE FUTURE OF MULTINATIONAL BANKING......Page 82
NOTES......Page 86
REFERENCES......Page 87
1 INTRODUCTION......Page 91
2 ASSET-BACKED SECURITIZATION......Page 92
3 COLLATERALIZED OBLIGATIONS......Page 96
4 CREDIT DERIVATIVES......Page 108
5 REGULATION......Page 117
NOTES......Page 129
REFERENCES......Page 131
PART II Banking Structures and Functions......Page 134
2 THE ORIGIN OF EMU: A REMINDER......Page 136
3 BANKING WITH A SINGLE CURRENCY......Page 138
4 THE STRATEGIC ISSUES......Page 148
5 CROSS-BORDER MERGERS: A REGULATORY CHALLENGE......Page 152
6 CONCLUSIONS......Page 157
NOTES......Page 158
REFERENCES......Page 159
2 STRUCTURE AND PERFORMANCE TRENDS IN EU BANKING......Page 161
3 THE NEW STRATEGIC ENVIRONMENT......Page 168
4 IMPACT OF REGULATORY CHANGE......Page 171
5 GENERAL IMPACT OF EMU ON BANKING AND FINANCIAL MARKETS......Page 175
6 COMPETITIVE STRATEGIES IN EUROLAND......Page 177
REFERENCES......Page 185
1 INTRODUCTION......Page 187
2 THE ESSENTIALS OF A CURRENCY BOARD......Page 188
3 CURRENCY BOARD OR INDEPENDENT CENTRAL BANK?......Page 193
4 SOME OTHER CONSIDERATIONS......Page 195
5 CONCLUDING COMMENTS......Page 199
NOTES......Page 201
REFERENCES......Page 202
1 INTRODUCTION......Page 204
2 THE CASE FOR FREE BANKING......Page 205
3 THE CASE FOR DEPOSIT INSURANCE......Page 209
4 THE CASE FOR BANK CAPITAL ADEQUACY REGULATION......Page 212
NOTES......Page 216
REFERENCES......Page 219
1 INTRODUCTION......Page 222
2 HISTORICAL DEVELOPMENT OF ISLAMIC BANKING......Page 223
3 ISLAMIC BANKING IN THEORY......Page 225
4 PRACTICE OF ISLAMIC BANKING......Page 229
5 TOO MUCH EMPHASIS ON PLS?......Page 233
6 ISLAMIC BANKING IN THE FUTURE......Page 234
NOTES......Page 236
REFERENCES......Page 237
1 INTRODUCTION......Page 238
2 STRUCTURE OF THE UNIVERSAL BANK......Page 239
3 FROM BOOK VALUE OF EQUITY TO MARKET VALUE OF EQUITY......Page 241
4 FROM MARKET VALUE OF EQUITY TO POTENTIAL VALUE OF EQUITY......Page 260
NOTES......Page 264
REFERENCES......Page 265
1 INTRODUCTION......Page 268
2 SECURITY ANALYSIS TECHNIQUES......Page 271
3 IMPORTANCE OF TECHNICAL ANALYSIS......Page 277
4 PROFITABILITY OF TECHNICAL ANALYSIS......Page 278
5 TRADING STRATEGIES AND ECONOMIC THEORY......Page 282
6 CONCLUDING REMARKS......Page 286
REFERENCES......Page 287
1 INTRODUCTION......Page 290
2 OPEN ACCOUNT TRADING......Page 292
3 DOCUMENTARY COLLECTIONS......Page 293
4 FINANCING......Page 298
5 DOCUMENTARY CREDITS......Page 299
6 SUMMARY AND CONCLUSION......Page 312
REFERENCE......Page 313
2 A BRIEF OVERVIEW OF TRENDS IN THE UK, US AND JAPANESE FINANCIAL MARKETS......Page 314
3 METHODOLOGY......Page 319
4 MODELLING THE BANKING FIRM......Page 327
5 EMPIRICAL EVIDENCE......Page 328
6 CONCLUSIONS......Page 349
REFERENCES......Page 351
PART III Banking Risks, Crises and Regulation......Page 356
1 INTRODUCTION......Page 358
2 A PERSPECTIVE ON COUNTRY RISK......Page 359
3 COPING WITH THE CHANGES......Page 362
4 CURRENT COUNTRY RISK MODELS: GENERAL CHARACTERISTICS......Page 367
5 CURRENT COUNTRY RISK MODELS: QUALITATIVE......Page 373
6 CURRENT COUNTRY RISK MODELS: QUANTITATIVE......Page 382
7 CONCLUDING REMARKS......Page 393
REFERENCES......Page 394
1 INTRODUCTION......Page 397
2 BANK FAILURE: THE CONTROVERSIES......Page 398
3 THE DETERMINANTS OF BANK FAILURE......Page 405
4 CONCLUSIONS......Page 427
NOTES......Page 428
REFERENCES......Page 430
APPENDIX 14A......Page 432
1 WHAT IS AN INTERNATIONAL BANKING CRISIS?......Page 434
2 BANKING CRISES: THEORY AND HISTORY......Page 436
3 THE ORIGINS AND TRANSMISSION OF BANKING CRISES......Page 441
4 THE SUPERFLUITY OF AN INTERNATIONAL LENDER OF LAST RESORT......Page 452
5 SUMMARY AND CONCLUSION......Page 455
REFERENCES......Page 456
1 INTRODUCTION AND OUTLINE......Page 459
2 RECENT BANKING CRISES......Page 461
3 SOME COMMON ELEMENTS IN BANKING DISTRESS......Page 463
4 A MULTIDIMENSIONAL PROBLEM......Page 464
5 LIBERALIZATION: STOCK ADJUSTMENT VERSUS STEADY STATE......Page 479
6 THE REGULATORY REGIME......Page 484
7 CONCLUSIONS AND ASSESSMENT......Page 510
REFERENCES......Page 512
1 INTRODUCTION......Page 517
2 FINANCIAL LIBERALIZATION......Page 518
3 EXTENSIONS OF THE SCOPE OF BANKING AND FINANCIAL INSTITUTION OPERATIONS......Page 525
4 THE FINANCIAL SYSTEM MASTER PLAN......Page 529
5 THE 1997 FINANCIAL CRISIS AND ITS IMPACT ON FINANCIAL REFORMS......Page 532
6 RESTRUCTURING AND REGULATORY REFORM......Page 533
7 CONCLUSIONS AND LESSONS......Page 544
NOTES......Page 545
REFERENCES......Page 546
1 INTRODUCTION......Page 547
2 CONCEPTS OF CAPITAL FLIGHT......Page 549
3 THE MEASUREMENT OF CAPITAL FLIGHT......Page 550
4 THE MAGNITUDE OF CAPITAL FLIGHT......Page 554
5 DETERMINANTS OF CAPITAL FLIGHT: THEORY AND EMPIRICAL RESULTS......Page 555
6 POLICY UNCERTAINTY: THE KEY DETERMINANT OF CAPITAL FLIGHT?......Page 565
7 SUMMARY AND CONCLUSION......Page 569
REFERENCES......Page 571
APPENDIX 18A......Page 575
1 INTRODUCTION......Page 577
2 MONEY LAUNDERING: SCALE, SCOPE AND TYPOLOGY......Page 578
3 THE MICROECONOMICS OF MONEY LAUNDERING......Page 584
4 MACROECONOMICS OF MONEY LAUNDERING......Page 587
5 COMBATING MONEY LAUNDERING......Page 596
6 CONCLUSION......Page 598
NOTES......Page 600
REFERENCES......Page 601
2 OBJECTIVES, TARGETS AND TECHNIQUES OF REGULATION......Page 603
3 THE NEW MARKET ENVIRONMENT......Page 609
4 IMPLICATIONS FOR REGULATORY STRUCTURE......Page 615
5 THE INTERNATIONAL DIMENSION......Page 620
6 SUMMARY AND CONCLUSION......Page 623
REFERENCES......Page 625
APPENDIX 20A......Page 627
1 INTRODUCTION......Page 643
2 SELECTIVE TRENDS IN US BANKING SUPERVISION......Page 644
3 BANKING REGULATION, HEDGE FUNDS AND OTC DERIVATIVES......Page 650
4 THE GRAMM–LEACH–BLILEY ACT OF 1999......Page 660
REFERENCES......Page 667
1 INTRODUCTION......Page 668
2 DEPOSIT INSURANCE: ORIGINS AND BACKGROUND......Page 669
3 DEPOSIT INSURANCE AND RISK-TAKING BEHAVIOUR......Page 671
4 THE PRICING OF DEPOSIT INSURANCE PREMIUMS......Page 677
5 DESIGN FEATURES OF A DEPOSIT INSURANCE SCHEME......Page 681
6 CONCLUSIONS AND POLICY IMPLICATIONS......Page 689
NOTES......Page 691
REFERENCES......Page 694
PART IV The Evolving International Financial Architecture......Page 700
1 INTRODUCTION......Page 702
2 MONETARY POLICY AS A STABILIZATION DEVICE......Page 703
3 THE TIME-INCONSISTENCY PROBLEM......Page 706
4 THE BASIC TRADE-OFF: FLEXIBILITY VERSUS CREDIBILITY......Page 713
5 OPTIMIZING THE TRADE-OFF: THE CONSERVATIVE CENTRAL BANKER......Page 716
6 RESOLVING THE TRADE-OFF: THE OPTIMAL CENTRAL BANK CONTRACT......Page 722
7 THE ADVANCED TRADE-OFF: CONSERVATIVE CENTRAL BANKER VERSUS OPTIMAL CENTRAL BANK CONTRACT......Page 724
8 THE REFLECTION OF THE IDEAS IN PRACTICE......Page 726
REFERENCES......Page 728
1 INTRODUCTION......Page 730
2 PAST......Page 731
3 PRESENT......Page 737
4 FUTURE......Page 744
REFERENCES......Page 749
1 INTRODUCTION......Page 752
2 CREATING A PUBLIC INTERNATIONAL INVESTMENT FUND FOR EMERGING MARKETS......Page 753
3 ISSUING A NEW ALLOCATION OF SDRs......Page 760
4 CREATING AN INTERNATIONAL CLEARING SYSTEM......Page 765
NOTES......Page 771
APPENDIX 25A......Page 773
1 INTRODUCTION......Page 782
2 TRADE THEORY AND TRADE IN FINANCIAL SERVICES......Page 783
3 THE MAIN PROVISIONS OF THE GATS AND TRADE LIBERALIZATION......Page 786
4 CONCLUSION......Page 792
REFERENCES......Page 794
Index......Page 796