The effects of credit risk transfer on bank monitoring and firm financing

This paper examines the efects of the transfer of credit risk associated with bank loans. We are interested in (a) whether the transfer of credit risk has any impact on the intensity with which banks monitor their borrowers and (b) whether credit risk transfer infuences the amount of financing that is provided to firms in an economy. Our model first develops conditions under which bank finance is available to firrms, mainly in the spirit of Holmstrom/Tirole (1997). We then introduce projects with uncorrelated pay-offs and argue that one possible economic rationale for credit risk transfer is diversi¯cation. We analyze whether and how within this scenario the transfer of the credit risk of loans changes a bank's incentives to monitor its debtors. Finally we investigate whether and what kind of impact this may have on the amount of ¯nancing available to firms in an economy. Our results indicate that the monitoring incentives are being eroded indeed and that credit risk transfer can increase the overall amount of obtainable funds in an economy.

Bank relationships: effect on the availability and marginal cost of credit for firms in Argentina

The paper provides evidence on what affects at the margin the cost and availability of bank credit for firms in Argentina. We study in particular how banks use different pieces of private and public information to screen firms and overcome informational asymmetries in the credit market. Some private information is transferable, like balance sheet data. Private information generated in relationships is not. To capture the closeness of bank relationships, we resort to the concentration of bank credit and the number of credit lines in a bank. We also consider public information available in the Central de Deudores. The cost of credit is measured using overdrafts, the most expensive line of credit, at the bank that charges the highest rate for overdrafts. We find that the cost of credit is smaller for a firm with a close relationship to the marginal bank. Firms with large assets, a high sales/assets ratio, and a low debt/assets ratio pay a lower interest rate at the margin. A good credit history (no debt arrears and no bounced checks) and collateral also reduce the marginal interest rate. The availability of credit is measured by unused credit lines as a proportion of total liabilities with the main bank. The availability of credit depends positively on a close relationship with the main bank. Large assets, a high return over assets, a high sales/assets ratio, a low debt/assets ratio, a good credit history, and collateral lead to higher credit availability. Our measure of unused credit lines is less ambiguous than traditional measures like leverage, which may indicate financial distress rather than availability of credit.

Creditor's protection and bank loans: lack of competition hamprers bankruptcy reform's effects

This dissertation investigates how credit institutions’ market power limits the effects of creditor protection rules on the interest rate and the spread of bank loans. We use the Brazilian Bankruptcy Reform of June/2005 (BBR) as a legal event affecting the institutional environment of the Brazilian credit market. The law augments creditor protection and aims to improve the access of firms to the credit market and to reduce the cost of borrowing. Either access to credit or the credit cost are also determined by bank industry competition and the market power of suppliers of credit. We derive a simple economic model to study the effect of market power interacting with cost of lending. Using an accounting and operations dataset from July/2004 to December/2007 provided by the Brazilian Central Bank, we estimate that the lack of competition in the bank lending industry hinders the potential reducing effect of the BBR on the interest rate of corporate loans by approximately 30% and on the spread by approximately 23%. We also find no statistical evidence that the BBR affected the concentration level of the Brazilian credit market. We present a brief report on bankruptcy reforms around the world, the changes in the Brazilian legislation and on some recent related articles in our introductory chapter. The second chapter presents the economic model and the testable hypothesis on how the lack of competition in the lending market limits the effects of improved creditor protection. In this chapter, we introduce our empirical strategy using a differences-in-differences model and we estimate the limiting effect of market power on the BBR’s potential to reduce interest rates and on the spread of bank loans. We use the BBR as an exogenous event that affects collateralized corporate loans (treatment group) but that does not affect clean consumer loans (control group) to identify these effects, using different concentration measures. In Chapter 3, we propose a two-stage empirical strategy to handle the H–Statistics proposed by Panzar and Rosse as a measure of market competition. We estimate the limiting effects of the lack of competition in replacing the concentration statistics by the H–Statistics. Chapter 4 presents a structural break test of the concentration index and checks if the BBR affects the dynamic evolution of the concentration index.

Bank transactions tax: pathway to the single tax ideal: a modern tax technology, the Brazilian experience with a bank transactions tax (1993-2007)

Lançado por Marcos Cintra nos EUA, é mais uma contribuição ao debate envolvendo os impostos e a ideia do Imposto Único.

The corporate financial effects of corporate social responsibility, as executed by, and impacted upon, Prime Bank Limited, Bangladesh

Corporate Social Responsibility (CSR) is being implemented in the corporate world at an ever increasing rate, benefitting societies around the world. Several theories have been proposed that contend that the corporations who are implementing CSR programs also benefit financially, making the relationship a symbiotic one. This paper analyzes the financial health of Prime Bank Limited, Bangladesh, (PBL) over a period of a decade in order to determine if PBL has indeed benefited financially from implementing its CSR program. The analysis focuses on examining PBL’s internal and external financial indicators over an extended period of time to determine what the net effect, if any, that the CSR program has had on them. This analysis concludes that the evidence does not support the claim of a causal relationship between CSR spending and positive effects upon PBL, as measured by PBL’s financial indicators.

Bank networks and firm credit: an agent based model approach

Starting from the idea that economic systems fall into complexity theory, where its many agents interact with each other without a central control and that these interactions are able to change the future behavior of the agents and the entire system, similar to a chaotic system we increase the model of Russo et al. (2014) to carry out three experiments focusing on the interaction between Banks and Firms in an artificial economy. The first experiment is relative to Relationship Banking where, according to the literature, the interaction over time between Banks and Firms are able to produce mutual benefits, mainly due to reduction of the information asymmetry between them. The following experiment is related to information heterogeneity in the credit market, where the larger the bank, the higher their visibility in the credit market, increasing the number of consult for new loans. Finally, the third experiment is about the effects on the credit market of the heterogeneity of prices that Firms faces in the goods market.

The trajectory of social housing policy in Brazil: From the National Housing Bank to the Ministry of the Cities

This paper discusses social housing policy in Brazil since the 1990s by analyzing government programs’ institutional arrangements, their sources of revenues and the formatting of related financial systems. The conclusion suggests that all these arrangements have not constituted a comprehensive housing policy with the clear aim of serving to enhance housing conditions in the country. Housing ‘policies’ since the 1990s – as proposed by Fernando Collor de Mello, Itamar Franco, Fernando Henrique Cardoso and ´ Luis Inacio Lula da Silva’s governments (in the latter case, despite much progress towards subsidized investment programs) – have sought to consolidate financial instruments in line with global markets, restructuring the way private interests operate within the system, a necessary however incomplete course of action. Different from rhetoric, this has resulted in failure as the more fundamental social results for the poor have not yet been achieved.

Multivariate analysis of fresh-cut carambola slices stored under different temperatures

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Biópsia hepática com agulha tru-cut guiada por videolaparoscopia em caprinos

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Trabalho, educação e desenvolvimento: o norte da educação da CUT na Amazônia

This thesis is the result of a bibliographic and field research, with the purpose to answer in what way the process of education developed by the CUT, expressed in the experience of the Project Vento Norte, developed in the Amazônia has colaborated in the sense of the possibility of a articulation between work, education, and develpoment. The bibliographic reasearch was based in the studies of theoreticals like Gadotti (1999), Marx (1998, 1998a), Pochman (2002), Brandão (1985, 2002), Adorno (1999, 2000), Horkeimer (1976), reseachers that in the process of their studies, thinked about the theme, related to work, to education and to developement. The field research was done by the intervews with CUT s educators and managers from the states of Acre, Amazonas, Amapá, Pará, Rondônia and Roraima. The thesis s process of elaboration is done in a cobweb of elements articulated to socioculture values from the habitat of amazônia people. The conclusions point to us that the hypothesis of the CUT, by the Project Vento Norte, develops a propose of education that articulates Work, Education and Development that is confirmed. But, the partiality of the project is presented by the limitations of the CUT s possibility in continuation of the project. Thats why the thesis suports the idea of the project and it consolidation in the Amazônica Region, by the conception of the syndicate managers and educators

Use of modified atmosphere to extend shelf life of fresh-cut carambola (Averrhoa carambola L. cv. Fwang Tung)

Fresh-cut fruit products, including carambola (Averrhoa carambola L.), have limited marketability due to cut surface browning attributed to phenolic compound oxidation by enzymes, such as polyphenol oxidase (PPO). The objective of this study was to evaluate postharvest changes in carambola slices in three different packages. Carambola fruit (cv. Fwang Tung) were picked from the Estacao Experimental de Citricultura de Bebedouro orchard at the mature-green stage. The fruit were washed, dipped in NaOCl solution (200 mg L-1 for 5 min), stored overnight at 10 degrees C, then manually sliced into pieces of approximately 1 cm. The slices were rinsed with NaOCl solution at 20 mg L-1, drained for 3 min, and packaged in polyethylene terephthalate (PET) trays (Neoform (R) N94); polystyrene trays covered with PVC 0.017 turn (Vitafilm (R), Goodyear); and vacuum seated polyolefin bags (PLO, Cryovac (R) PD900). The packages were stored at 6.8 degrees C and 90% RH for 12 d, with samples taken every 4 d. PET trays and PVC film did not significantly modify the internal atmosphere and the high water permeability of PVC led to more rapid slice desiccation. PPO activity was lower when the slices were packaged in PLO vacuum sealed bags, which reduced degreening and led to better appearance maintenance for up to 12 d. (R) 2006 Elsevier B.V. All rights reserved.

Impact of atmosphere, organic acids, and calcium on quality of fresh-cut 'Kensington' mango

Fresh-cut slices from ripe 'Kensington' mango (Mangifera indica L.) were prepared aseptically and stored under various treatments at 3 degrees C. Treatments included reduced oxygen (2.5%), enhanced carbon dioxide (5-40%), organic acid application, calcium chloride application, and combinations of the above. Symptoms limiting shelf-life were characterised by tissue darkening, development of a 'glassy' appearance, surface desiccation, and loss of firmness. Reduced oxygen (2.5%) was effective at controlling tissue darkening and the development of a 'glassy' appearance, while calcium application (3%) was partly effective at controlling darkening. Calcium chloride however significantly slowed (but did not stop) loss of tissue firmness. Carbon dioxide (5-40%) and citric acid had little positive effect on shelf-life, with both treatments appearing to promote tissue softening. A combination of low oxygen and calcium allowed 'Kensington' slices to be held for at least 15 days at 3 degrees C. (C) 2006 Elsevier B.V All rights reserved.