Senate Documents vol 24 Evolution of Credit and Banks in France

From the Founding of the Bank of France to the Present Time

Local savings and credit organizations : towards an innovative approach for rural Zimbabwe

Résumé : L'épargne et le crédit sont reconnus comme deux éléments clés du développement économique. Or, jusqu'à ce que les membres défavorisés d'une communauté aient accès aux ressources et services financiers, ils seront toujours privés de la participation au processus du développement et des bénéfices qui pourraient s'en suivre. La recherche indique que les services des prêts offerts par les institutions officielles ne parviennent que rarement aux plus pauvres de la société, qui sont obligés par conséquent de dépendre des intermédiaires informels comme les groupes d'épargne et les usuriers. Diverses organisations sur place comme les coopératives ont essayé de répondre aux besoins du développement des communautés défavorisées. Dans ce contexte, nous ferons d'abord le bilan historique et international des coopératives d'épargne et de crédit (i.e. les caisses populaires). Ensuite, nous analyserons quatre autres tentatives récentes qui eurent pour but de créer de nouvelles formes d'institutions financières, de les développer de telle sorte qu'elles offrent un degré d'accès raisonnable, sinon privilégié, aux ménages de revenu inférieur. L'analyse de ces cas-ci (venant du Zimbabwe, de l'Inde, du Ghana, et du Bangladesh) permettra d'identifier leurs caractéristiques communes et divergentes. À partir des résultats de cette analyse, un projet pilote au Zimbabwe fut initié pour élaborer une stratégie appropriée qui faciliterait le développement d'un réseau de caisses rurales. L'analyse théorique, la mise en pratique du projet, ainsi que les conclusions subséquentes soulignent l'importance de la participation directe des communautés à l'élaboration des organisations populaires. Il est évident que ces méthodes sont de loin plus efficaces que celles basées sur des politiques et des structures uniformes et compréhensives.||Abstract : Savings and credit are recognized as key elements of economic development, but until such time as disadvantaged members of the community have access to financial resources and services, they are obstructed from participating fully in the development process. Experience has shown that formal institutional credit bas rarely reached the poorer sectors of society, who have had to rely on informal intermediaries such as savings groups and money-lenders. Local organizations such as co-operatives have attempted to respond to the development needs of disadvantaged communities, and the historical and international record of savings and credit co-operatives (i.e. credit unions) is examined in this context. Four recent initiatives to design and develop new forms of financial institutions that give fair if not favoured access to low-income housebolds are also identified. These cases (from Zimbabwe, India, Bangladesh, and Ghana) are examined in an effort to identify common and divergent characteristics. Following from this analysis, a pilot project in Zimbabwe was initiated in an effort to elaborate an appropriate strategy for development of a network of rural savings and credit organization. The theoretical analysis, field exercise and subsequent reflections highlight the need for participatory methods of organizational design and development, rather than any all-encompassing structural or policy guidelines.

Water quality trading: credit stacking and ancillary benefits

Ecosystems can provide many services. Wetlands, for example, can help mitigate water pollution from point sources as well as non-point sources, serve as habitat for wildlife, sequester carbon and serve as a place for recreation. Studies have found that these services can have substantial value to society. The sale of ecosystem credits has been found to be a possible way to finance construction investments in wetlands and easements to farmers to take their land out of production. At the same time, selling one ecosystem service credit may not always be enough to justify the investment. Traditionally market participants have only been allowed to sell a single credit from one piece of land, but recently there have been discussions about the possibility of selling more than one credit from a piece of land because it potentially could lead to more efficient ecosystem service provision. Selling multiple credits is sometimes referred to as credit stacking. This paper is an empirical study of the potential for credit stacking applied to the services provided by wetlands in the Upper Mississippi River Basin, specifically nitrogen, phosphorus and wildlife credits. In the setting of our study where costs are discrete rather than continuous we found that wetlands are a cost-effective way to reduce the nitrogen loads from wastewater treatment plants and that stacking nitrogen, phosphorus and wildlife credits may improve social welfare while leading to a higher level of ecosystem services. However, for credit stacking to be welfare improving we found that there needs to be a substantial demand for the credit that covers the majority of the investment in wetlands, while the credit aggregator has a choice between what ecosystem projects to undertake. If the credit that covers the majority of investment is sold first and is the sole basis of the investment decision and the objective is to improve welfare, a sequential implementation of ecosystem credits is not recommended; it would not lead to an increase in the total amount of ecosystem services provided though it would increase profit for the credit producer.

Report of the Working Group on Introductions and Transfers of Marine Organisms (WGITMO). 16-18 March 2016 Olbia, Italy

The 42th meeting of the ICES Working Group on Introductions and Transfers of Marine Organisms (WGITMO) was held in Olbia, Italy, 16–18 March 2016, with Anna Occhipinti-Ambrogi as host and Henn Ojaveer as chairperson. Representatives from 19 countries participated in the meeting. Attendants were from Belgium, Canada, Dennark, Estonia, Finland, France, Germany, Ireland, Israel, Italy, Lithuania, Norway, Poland, Portugal, Russia, Spain, Sweden, United Kingdom and United States. Sweden contributed by cor-respondence. The objectives of the meeting were to update information and discuss several aspects related to the introductions and transfers of non-indigenous aquatic species. Data and information management were two of the discussion topics of the meeting, with special focus on the better exploitation of the ‘Information system on aquatic non-indigenous and cryptogenic species’ (AquaNIS). The WGITMO also dedicated time for addressing the MSFD D2 issues: indicator on new non-indigenous species introduced by human activities, and opportunities and problems related to cross-regional comparison of non-indigenous species indicators. Preparation of the manuscript of the alert report on sea squirt Didemnum vexillum, which is to be published in ICES CRR series, was discussed and the steps to be taken to finalise the report were agreed. As usual, adequate time was devoted to discuss national reports, to exchange of information on the management of NIS and to review ongoing and planned research activities. The approach taken during the meeting facilitated presentations and discussions on the issues of relevance related to the Terms of References as well as on a few generic and strategically-important issues of general relevance to bioinvasions. The meeting began with a full-day joint meeting with the Working Group on Ballast and Other Ship Vectors (WGBOSV), which provided an opportunity to discuss and address issues of common interest, such as shipping and biofouling as introduction vectors. The proposed ICES demonstration advice on ‘Risk management of non-indigenous species associated with shipping in the Arctic’ was discussed, and edits were suggested for both the orientation of the demonstration advice as well as for the exact questions to be asked. Both working groups agreed that the practice of conducting back-to-back meetings with one joint day is useful and will continue in 2017. All Terms of References to be addressed for 2016 were discussed. For some Terms of Ref-erence, more detailed presentations were given, and a short overview of the information and subsequent discussion is provided herein at the end of each section. This report is structured so that each Term of Reference is dealt with in sequential order. The main body of the report contains summaries of the presentations and discussions with the more detailed documents being contained in the Annexes. WGITMO progressed each of the Terms of Reference by either completing the task or clearly identifying and agreeing on the inter-sessional activities required to still finalise the work in 2016. From 2017, WGITMO will be shifted to multi-annual management.

The ways behind the railways: Algarve's railway line. Technique transfers and transport development in Southern Portugal

Esta dissertação pretende contribuir para um melhor conhecimento da complexidade das redes de transferência de conhecimentos e técnicas, no domínio da engenharia civil e mais concretamente através dos caminhos-de-ferro, nos séculos XIX e XX. Em Portugal, os caminhos-de-ferro estiveram no cerne de um vasto debate, sobretudo político, concomitante com uma instabilidade crescente no cenário político e uma fase de fragilidade económica. É neste contexto que a Linha do Sul e Sueste vai ser construída (seguida pela sua extensão até Vila Real de Santo António e pela construção do ramal de Portimão, que chegará a Lagos). Este empreendimento é uma clara ilustração da realidade portuguesa de então, no que concerne ao desenvolvimento desta rede de transportes, que nos permite, igualmente, conhecer e compreender quem interveio no processo de construção da linha (os engenheiros, as empresas, entre outros aspectos) e assim determinar quais as influências e transferências técnicas que tiveram lugar; RESUMEE: Cette mémoire attire à la contribution pour une meilleure connaissance de la complexité des réseaux de transfert de techniques et connaissances qui ont eu lieu dans le domaine de l’ingénierie civile, surtout dans les chemins de fer, au XIXème et XXème siècles. Au Portugal, les chemins de fer sont été le cerne d’un très vaste débat, coïncidant avec une croissante instabilité dans le scenario politique et aussi une phase économique fragile. C’est dans ce contexte que la Ligne du Sud et Sud-est va être bâti (suivi par l’extension jusqu’à Vila Real de Santo António et la construction de l’embranchement ferroviaire Portimão). Cette entreprise c’est une illustration claire de la réalité portugaise, en concernant l’implémentation de cette réseau de transport, que nous permettre de comprendre et également bien connaitre qui a intervenu dans le processus de construction de la ligne (les ingénieurs, entreprises, etcetera), ainsi que déterminer les influences et les transferts techniques qui ont eu lieu; ABSTRACT: With this master’s thesis, the aim is to be able to contribute to a better understanding of the complex network of technique’s and knowledge transfers, that took place within the field of civil engineering, in the 19th and 20th centuries, namely on the railways. In Portugal, railways take-up was a wide and ample debate, coinciding with an uprising turmoil on the Portuguese political outskirt and a phase of economic frailty. It’s in this context that the construction of the South and Southeast Line took place (followed, later on, by its extension until Vila Real de Santo António and by the construction of the Portimão’s branch). This enterprise is, as we pretend to prove in this master’s thesis, a clear example of the Portuguese reality, enabling us to understand and to get to know those who intervened in the construction’s process (the engineers and the companies) as well as determining influences and technique transfers that have taken place.

FERTILISER CREDIT AND AGROECOLOGICAL USE OF ORGANIC SOIL AMENDMENTS IN NORTHERN GHANA

Contemporary African agricultural policy embodies the African Green Revolution’s drive towards modernisation and commercialisation. Agroecologists have criticised this movement on ecological, social and political grounds. Northern Ghanaian fertiliser credit schemes provide a good example through which these critiques can be examined in a context where agricultural policy reflects the African Green Revolution’s ideals. This study aimed to determine the relationship of such credit schemes to farmers’ use of organic amendments, elucidate other factors related to organic amendment use, and comment on the relevance of this modernisation policy and its relationship to agroecology. A first research phase employed semi-structured key informant interviews. Qualitative data from these informed construction of a semi-structured questionnaire that was used in a survey of 205 farmers. Multistage sampling purposively identified five villages and selected farmers within who had joined government and donor-funded fertiliser credit schemes. The use of organic and inorganic amendments was compared to that of peers who had not taken part in such schemes. Quantitative data were used in binomial logistic regression, inferential and descriptive statistics. Qualitative data were content analysed. Credit group membership was associated with higher fertiliser application and yield, but had little influence on the extent of commercialisation. Farmers who applied organic amendments were 40% less likely to belong to a fertiliser credit scheme than not, indicating substitution between organic and inorganic fertilisers. Organic amendments were 40% more likely to be applied to compound farms than outfields and six times more likely to be applied by household heads than other household members. However, household heads also preferentially joined credit groups. This was part of an agroecological soil fertility management strategy. Household heads appreciated the soil moisture retention properties of organic amendments, and applied them to compound farms to reduce risk to their household food supply in a semi-arid environment. They simultaneously accessed fertiliser to enhance this household provisioning strategy. They appreciated the increased yields this achieved, yet complained that the repayment terms of credit schemes were unfair, fertiliser did not enhance yields in dry conditions and fertilisers were supplied late. Farmers’ use of credited fertiliser alongside their existing agroecological strategy is helpful to the extent that it raises yields, yet is problematic in that it conflicts with risk-reduction strategies based on organics. There is some potential for modernised and agroecological management paradigms to coexist. For fertiliser credit to play a role in this, schemes must use fairer repayment terms and involve a focus on simultaneous use of organic amendments.

Role of financial and other information in trade credit decisions in SMEs: An international study

Trade credit is an important source of finance for SMEs and this study investigates the use of the financial statements and other information in making trade credit decisions in smaller entities in Finland, the UK, USA and South Africa. The study adds to the literature by examining the information needs of unincorporated entities as a basis for making comparisons with small, unlisted companies. In-depth, semi-structured interviews in each country were used to collect data from the owner-managers of SMEs and from credit rating agencies and credit insurers. The findings provide insights into similarities and differences between countries and between developed and developing economies. The evidence suggests that there are three main influences on the trade credit decision: formal and report-based information, soft information relating to social capital and contingency factors. The latter dictate the extent to which hard/formal information versus soft/informal information is used.

Information Content of Bank Credit Rating Changes: Evidence from Europe

This thesis examines the short-term impact of credit rating announcements on daily stock returns of 41 European banks indexed in STOXX Europe 600 Banks. The time period of this study is 2002–2015 and the ratings represent long-term issuer ratings provided by S&P, Moody’s and Fitch. Bank ratings are significant for a bank’s operation costs so it is interesting to investigate how investors react to changes in creditworthiness. The study objective is achieved by conducting an event study. The event study is extended with a cross-sectional linear regression to investigate other potential determinants surrounding rating changes. The research hypotheses and the motivation for additional tests are derived from prior research. The main hypotheses are formed to explore whether rating changes have an effect on stock returns, when this possible reaction occurs and whether it is asymmetric between upgrades and downgrades. The findings provide evidence that rating announcements have an impact on stock returns in the context of European banks. The results also support the existence of an asymmetry in capital market reaction to rating upgrades and downgrades. The rating downgrades are associated with statistically significant negative abnormal returns on the event day although the reaction is rather modest. No statistically significant reaction is found associated with the rating upgrades on the event day. These results hold true with both rating changes and rating watches. No anticipation is observed in the case of rating changes but there is a statistically significant cumulative negative (positive) price reaction occurring before the event day for negative (positive) watch announcements. The regression provides evidence that the stock price reaction is stronger for rating downgrades occurring within below investment grade class compared with investment grade class. This is intuitive as investors are more concerned about their investments in lower-rated companies. Besides, the price reaction of larger banks is more mitigated compared with smaller banks in the case of rating downgrades. The reason for this may be that larger banks are usually more widely followed by the public. However, the study results may also provide evidence of the existence of the so-called “too big to fail” subsidy that dampens the negative returns of larger banks.

Household portfolio allocation, risk attitudes and credit constraints : evidence from the eurozone

Mestrado em Economia Monetária e Financeira

Credit risk & forward price models

Doutoramento em Gestão

The credit channel transmission of monetary policy in the European Union

This paper confirms the importance of the financial systems behaviour conditions to the credit channel of monetary policy in the entire European Union (EU). It uses panel fixed- effect estimations and quarterly data for 26 EU countries for the period from Q1 1999 to Q3 2006 in an adaptation of the Bernanke and Blinder (1988) model. The findings also reveal the high degree of foreign dependence and indebtedness of the EU banking institutions and their similar reactions to the macroeconomic and the monetary policy environments.

The economics of credit markets: theory and evidence.

Doutoramento em Economia.