Post crisis challenges to bank regulation

The current crisis has swept aside not only the whole of the US investment banking industry butalso the consensual perception of banking risks, contagion and their implication for bankingregulation. As everyone agrees now, risks where mispriced, they accumulated in neuralgic pointsof the financial system, and where amplified by procyclical regulation as well as by the instabilityand fragility of financial institutions.The use of ratings as carved in stone and lack of adequate procedure to swiftly deal withsystemic institutions bankruptcy (whether too-big-to-fail, too complex to fail or too-many to fail).The current paper will not deal with the description and analysis of the crisis, already covered inother contributions to this issue will address the critical choice regulatory authorities will face. Inthe future regulation has to change, but it is not clear that it will change in the right direction. Thismay occur if regulatory authorities, possibly influenced by public opinion and political pressure,adopt an incorrect view of financial crisis prevention and management. Indeed, there are twoapproaches to post-crisis regulation. One is the rare event approach, whereby financial crises willoccur infrequently, but are inescapable.

Bank liquidity, interbank markets and monetary policy

A major lesson of the recent financial crisis is that the interbank lending marketis crucial for banks facing large uncertainty regarding their liquidity needs. Thispaper studies the efficiency of the interbank lending market in allocating funds. Weconsider two different types of liquidity shocks leading to different implications foroptimal policy by the central bank. We show that, when confronted with a distributional liquidity-shock crisis that causes a large disparity in the liquidity held amongbanks, the central bank should lower the interbank rate. This view implies that thetraditional tenet prescribing the separation between prudential regulation and monetary policy should be abandoned. In addition, we show that, during an aggregateliquidity crisis, central banks should manage the aggregate volume of liquidity. Twodifferent instruments, interest rates and liquidity injection, are therefore required tocope with the two different types of liquidity shocks. Finally, we show that failureto cut interest rates during a crisis erodes financial stability by increasing the riskof bank runs.

Is bank debt special for the transmission of monetary policy? Evidence from the stock market

We combine existing balance sheet and stock market data with two new datasets to studywhether, how much, and why bank lending to firms matters for the transmission of monetarypolicy. The first new dataset enables us to quantify the bank dependence of firms precisely,as the ratio of bank debt to total assets. We show that a two standard deviation increase inthe bank dependence of a firm makes its stock price about 25% more responsive to monetarypolicy shocks. We explore the channels through which this effect occurs, and find that thestock prices of bank-dependent firms that borrow from financially weaker banks display astronger sensitivity to monetary policy shocks. This finding is consistent with the banklending channel, a theory according to which the strength of bank balance sheets mattersfor monetary policy transmission. We construct a new database of hedging activities andshow that the stock prices of bank-dependent firms that hedge against interest rate riskdisplay a lower sensitivity to monetary policy shocks. This finding is consistent with aninterest rate pass-through channel that operates via the direct transmission of policy ratesto lending rates associated with the widespread use of floating-rates in bank loans and creditline agreements.

ValTer2 and ForesTer : From a relational term bank to hypertext on the Web

Abstract

The Nordic Gene Bank's Prunus clone archive in Finland 1

Selostus: Pohjoismaisen geenipankin Prunus-kokoelma Suomessa : 1. Hapankirsikkakannat

The Nordic Gene Bank's Prunus clone archive in Finland 2

Selostus: Pohjoismaisen geenipankin Prunus-kokoelma Suomessa : 1. Luumukannat

Submerged Vanes for Flow Control and Bank Protection in Streams, HR-255, 1984

This study was conducted for the purpose of evaluating a new concept for a bank-protection structure: The Iowa Vane . The underlying idea involves countering the torque exerted on the primary flow by its curvature and vertical velocity gradient, thereby eliminating or significantly reducing the secondary flow and thus reducing the undermining of the outer banks and the high-velocity attack on it. The new structure consists of an array of short, vertical, submerged vanes installed with a certain orientation on the channel bed. A relatively small number of vanes can produce bend flows which are practically uniform across the channel. The height of the vanes is less than half the water depth, and their angle with the flow direction is of the order of l0 degrees. In this study, design relations have been established. The relations, and the vanes' overall performance, have been tested in a laboratory model under different flow and sediment conditions. The results are used for the design of an Iowa-Vane bank protection structure for a section of East Nishnabotna River along U.S. Highway 34 at Red Oak, Iowa.

Le Consulat et l'Empire : pièce militaire en 4 actes et 22 tableaux (de 1799 à 1806), / par MM. Fabrice Labrousse et Albert...

Collection : Magasin théâtral