00924nas a2200253 i 450099100278821970753620231114121014.0011205m19641966sz || | |fre b11708098-39ule_instPERLE007461ExLCDU 361Revue de l'Union internationale de secoursRevue de l'Union internationale de secours. - 1964-1966Genève,1964-1966Codice CNR: P 00008406LE009 1965;lac.;Union internationale de secoursRevue pour l'étude des calamités.b1170809802-04-1408-07-02991002788219707536LE009 Per. G. 143.11le009-E0.00-no 180000.i1194277008-07-02Revue de l'Union internationale de secours. - 1964-1966894510UNISALENTOle00901-01-01sa -fresz 0107637oam 22016814 450 991096123260332120250426110506.09781475512489147551248197814755124651475512465(CKB)2670000000278930(EBL)1607012(SSID)ssj0000941793(PQKBManifestationID)11498813(PQKBTitleCode)TC0000941793(PQKBWorkID)10971664(PQKB)11650760(Au-PeEL)EBL1607012(CaPaEBR)ebr10627151(OCoLC)812041171(IMF)WPIEE2012238(IMF)WPIEA2012238(MiAaPQ)EBC1607012WPIEA2012238(EXLCZ)99267000000027893020020129d2012 uf 0engurcn|||||||||txtccrBanking and Trading /Arnoud Boot, Lev Ratnovski1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (49 p.)IMF Working PapersIMF working paper ;WP/12/238Description based upon print version of record.9781475512472 1475512473 9781475511215 1475511213 Includes bibliographical references.Cover; Contents; I. Introduction; II. Relationship to the Literature; III. Model; A. Approach; B. Credit Constraints; C. Banking; D. Trading; IV. Benefits of Conglomeration; V. Time Inconsistency of Capital Allocation; A. Setup: Long-term Banking; B. The Consequences of Time Inconsistency; C. Cost of Conglomeration under Time Inconsistency; VI. Trading as Risk-Shifting; A. Setup: Risky Trading; B. Risk-Shifting; C. The Interaction of Time Inconsistency and Risk Shifting; VII. Discussion; A. Front-loaded Income in Relationship Banking; B. External Equity and Internal Capital AllocationC. Policy Implications VIII. Conclusion; References; Figures; 1. The Timeline; 2. The Timeline with Time Inconsistency; 3. Relationship Banking Allocation R as a Function of Trading Opportunities; 4. The Volume of Banking (R) and Trading (T), and Profits (Π)under Conglomerated Banking; 5. The Volumes of Banking (R)and Trading (T), and Profits (Π) with Risk-shifting; 6. Time Inconsistency Arises due to a Higher Return to Trading under Risk-shifting ("Effect 1"); 7. Risk-shifting Arises due to a Higher Volume of Trading, Driven by Time Inconsistency ("Effect 2")We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank engages in trading, it can use its ‘spare’ capital to profitablity expand the scale of trading. However, there are two inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex-ante. And a bank may use trading for risk-shifting. Financial development augments the scalability of trading, which initially benefits conglomeration, but beyond some point inefficiencies dominate. The deepending of the financial markets in recent decades leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will persist for the foreseeable future. The analysis has implications for capital regulation, subsidiarization, and scope and scale restrictions in banking.IMF Working Papers; Working Paper ;No. 2012/238Banks and bankingStocksBank soundnessimfBankingimfBanks and BankingimfBanks and bankingimfBanksimfBrokerageimfCapital and Ownership StructureimfCreditimfDepository InstitutionsimfEconomic & financial crises & disastersimfFinanceimfFinance: GeneralimfFinancial CrisesimfFinancial crisesimfFinancial Institutions and Services: Government Policy and RegulationimfFinancial institutionsimfFinancial Risk and Risk ManagementimfFinancial Risk ManagementimfFinancial risk managementimfFinancial sector policy and analysisimfFinancing PolicyimfGeneral Financial Markets: Government Policy and RegulationimfGoodwillimfIndustries: Financial ServicesimfInvestment BankingimfLines of creditimfLoansimfMicro Finance InstitutionsimfMonetary economicsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMoney and Monetary PolicyimfMoneyimfMoral hazardimfMortgagesimfPublic finance & taxationimfRatings and Ratings AgenciesimfTax incentivesimfTaxationimfTaxation, Subsidies, and Revenue: GeneralimfValue of FirmsimfVenture CapitalimfUnited StatesimfBanks and banking.Stocks.Bank soundnessBankingBanks and BankingBanks and bankingBanksBrokerageCapital and Ownership StructureCreditDepository InstitutionsEconomic & financial crises & disastersFinanceFinance: GeneralFinancial CrisesFinancial crisesFinancial Institutions and Services: Government Policy and RegulationFinancial institutionsFinancial Risk and Risk ManagementFinancial Risk ManagementFinancial risk managementFinancial sector policy and analysisFinancing PolicyGeneral Financial Markets: Government Policy and RegulationGoodwillIndustries: Financial ServicesInvestment BankingLines of creditLoansMicro Finance InstitutionsMonetary economicsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMoney and Monetary PolicyMoneyMoral hazardMortgagesPublic finance & taxationRatings and Ratings AgenciesTax incentivesTaxationTaxation, Subsidies, and Revenue: GeneralValue of FirmsVenture Capital332.1/52Boot Arnoud1815924Ratnovski Lev1193852DcWaIMFBOOK9910961232603321Banking and Trading4371548UNINA