Effects of bank supervision and regulation on bank risk

In the last few decades, banking has strongly internationalized and become more complex. Hence, bank supervision and regulation has taken global perspective, too. The most important international regulation are the Basel frameworks by the Basel committee on banking supervision. This study examines the effects of bank supervision and regulation, especially the Basel II, on bank risk and risk-taking. In order to separate and recognize the efficiency of these effects, the co-effects of many supervisory and regulatory tools together with other relevant factors must be taken into account. The focus of the study is on the effects of asymmetric information and banking procyclicality on the efficiency of the Basel II. This study tries to find an answer, if the Basel II, implemented in 2008, has decreased bank risk in banks of European Union member states. This study examines empirically, if the volatility on bank stock returns have changed after the implementation of the Basel II. Panel data consists of 62 bank stock returns, bank-specific variables, economic variables and variables concerning regulatory environment between 2003 and 2011. Fixed effects regression is used for panel data analysis. Results indicate that volatility on bank stock returns has increased after 2008 and the implementation of the Basel II. Result is statistically very significant and robustness has been verified in different model specifications. The result of this study contradicts with the goal of the Basel II about banking system stability. Banking procyclicality and wrong incentives for regulatory arbitrage under asymmetric information explained in theoretical part may explain this result. On the other hand, simultaneously with the implementation of the Basel II, the global financial crisis emerged and caused severe losses in banks and increased stock volatility. However, it is clear that supervision and regulation was unable to prevent the global financial crisis. After the financial crisis, supervision and regulation have been reformed globally. The main problems of the Basel II, examined in the theoretical part, have been recognized in order to prevent problems of procyclicality and wrong incentives in the future.

Security, Loan & Savings Company receipt

An 1897 receipt from the Security, Loan & Savings Company to the Grand Central Hotel Co. for $15.00

Niagara Suspension Bridge Bank note, 1841

The Niagara Suspension Bridge Bank operated in Queenston in 1840. The bank issued notes in denominations of ten dollars, five dollars and one dollar, and featured a drawing of the Queenston-Lewiston Bridge, ten years prior to its construction. The notes are signed by the bank’s Cashier, Gilbert McMicken, and President, Joseph Hamilton. The bank failed a year after its establishment.

A DYNAMIC FRAMEWORK FOR THE RELATIONS BETWEEN FOREIGN EXCHANGE RATES, SAVINGS AND INVESTMENTS

The Meese-Rogoff forecasting puzzle states that foreign exchange (FX) rates are unpredictable. Since one country’s macroeconomic conditions could affect the price of its national currency, we study the dynamic relations between the FX rates and some macroeconomic accounts. Our research tests whether the predictability of the FX rates could be improved through the advanced econometrics. Improving the predictability of the FX rates has important implications for various groups including investors, business entities and the government. The present thesis examines the dynamic relations between the FX rates, savings and investments for a sample of 25 countries from the Organization for Economic Cooperation and Development. We apply quarterly data of FX rates, macroeconomic indices and accounts including the savings and the investments over three decades. Through preliminary Augmented Dickey-Fuller unit root tests and Johansen cointegration tests, we found that the savings rate and the investment rate are cointegrated with the vector (1,-1). This result is consistent with many previous studies on the savings-investment relations and therefore confirms the validity of the Feldstein-Horioka puzzle. Because of the special cointegrating relation between the savings rate and investment rate, we introduce the savings-investment rate differential (SID). Investigating each country through a vector autoregression (VAR) model, we observe extremely insignificant coefficient estimates of the historical SIDs upon the present FX rates. We also report similar findings through the panel VAR approach. We thus conclude that the historical SIDs are useless in forecasting the FX rate. Nonetheless, the coefficients of the past FX rates upon the current SIDs for both the country-specific and the panel VAR models are statistically significant. Therefore, we conclude that the historical FX rates can conversely predict the SID to some degree. Specifically, depreciation in the domestic currency would cause the increase in the SID.

Royal Bank of Canada records, 1973-1977

In 1973, the Royal Bank of Canada began construction on a new office in downtown Toronto known as the Royal Bank Plaza. The $100 million construction project consisted of two triangular office towers linked by a glass-enclosed banking hall. In addition to housing the Royal Bank of Canada’s Ontario headquarters, the Plaza included a two-level shopping concourse with restaurants and boutiques, as well as office space available for lease. The Plaza officially opened on March 10, 1977.

Citizens’ Savings and Loan Association, Cleveland, Ohio passbook

Citizens’ Savings and Loan Association, Cleveland, Ohio passbook issued to Isabel G. Price, 1882- 1901.

Society for Savings in the City of Cleveland Passbook

Society for Savings in the City of Cleveland passbook (soft cover) issued to Isabella P. Woodruff. Included with this is a New York draft for $389.00. There is no name or date on the draft, 1902, n.d.

Canadian Bank of Commerce (vinyl cover), St. Catharines bank book of Welland D. Woodruff Esq.

Canadian Bank of Commerce (vinyl cover), St. Catharines bank book of Welland D. Woodruff Esq., 1915-1917.

Memoranda booklet (soft cover) compliments of the Canadian Bank of Commerce, St. Catharines Branch

Memoranda booklet (soft cover) compliments of the Canadian Bank of Commerce, St. Catharines Branch. Only one page has writing on it. It appears to be a shopping list, n.d.

Indenture of assignment of mortgage between Executors of the Zimmerman Estate and the Bank of Upper Canada

Indenture of assignment of mortgage between Executors of the Zimmerman Estate and the Bank of Upper Canada regarding Lot no. 4 in block O in the Town of Elgin – instrument no. 6360, May 14, 1858.

Letter to William Dickson of Galt from the cashier of the Bank of Upper Canada

Letter to William Dickson of Galt from the cashier of the Bank of Upper Canada, Toronto, Ontario. This letter informs Mr. Dickson that he has received a bonus on his shares of the Old Stock on the Bank of Upper Canada due to an act that was passed by legislature (3 pages, printed), Jan. 6, 1855.

Statement of Debentures lodged in the Bank of Upper Canada for Safe Keeping and for Collection the Interest

Statement of Debentures lodged in the Bank of Upper Canada for Safe Keeping and for Collection the Interest on them every 6 months, on the 8th of February and the 8th of August every year (handwritten), 1848, 1850.

Statement of Debentures lodged in the Bank of Upper Canada for Safe Keeping and for Collection the Interest

Statement of Debentures lodged in the Bank of Upper Canada for Safe Keeping and for Collection the Interest on them every 6 months, on the 8th of February and the 8th of August every year (handwritten). [This is a more detailed copy of the above item], 1848, 1850.