61 Articles found for Industry: Finance / Banking

In discussing the state of the financial services industry, it’s hard not to reference the events of Sept. 11. Yet even before that day, the industry was undergoing a number of changes that will affect customers, employees, analysts, managers and others. These changes, and the outlook ahead, were the focus of two Wharton conferences in October (2001).

Content: Article | Source: Knowledge@Wharton | Subjects: Finance, Industry Specific | Industry: Finance / Banking

International bank regulators are currently drafting a new version of the historic 1988 Basel Capital Accord, which set minimum capital requirements for banks around the world. Far from being an esoteric banking issue, the new rules will have far-reaching implications for banks and borrowers alike. As currently written, however, proposals for the new accord threaten to put an undue and unintended capital burden on … [ Read more ]

Content: Article | Authors: David Bear, Gunnar Pritsch, Kevin S. Buehler | Source: McKinsey Quarterly | Subjects: Finance, Industry Specific | Industry: Finance / Banking

Developing a local-currency bond market tops the agenda of many emerging economies intent on financial reform. The reasons are clear: a deep and liquid bond market provides an alternative to bank credit and thus helps to create a more competitive financial sector and to lower the cost of borrowing. And bonds tend to have longer maturities than bank loans in these economies, thereby reducing the … [ Read more ]

Content: Article | Author: Tobias Hoschka | Source: McKinsey Quarterly | Subjects: Economics, Finance | Industry: Finance / Banking

20 years pass and one becomes two: that is, over time, the once-unified financial services industry split into two broad sectors. One is wholesale finance, where clients who have direct access to capital markets may receive financial services. The second is retail and regional finance, where clients do not have direct access but still receive services. Professors Ingo Walter and Roy Smith compare and contrast … [ Read more ]

Content: Article | Authors: Ingo Walter, Roy Smith | Source: INSEAD Knowledge | Subjects: Finance, Industry Specific | Industry: Finance / Banking

The market for lending equities is obscure and privately negotiated, but the benefits are substantial, according to Wharton finance professors Christopher Geczy and David Musto and Wharton doctoral student Adam Reed. In the article below, reprinted from the Financial Times’ Mastering Investment series, the three authors discuss short-selling in equity lending, short selling of IPO stocks and the legal issues of shorting.

Content: Article | Source: Knowledge@Wharton | Subjects: Finance, Industry Specific | Industry: Finance / Banking

As the once-fragmented banking industry continues the consolidation that began a decade and a half ago, what has been the impact of bank mergers on consumers? Are they finding higher fees and fewer free services, or lower interest rates and more service options? Some experts offer their opinions.

Content: Article | Source: Knowledge@Wharton | Subjects: Finance, Industry Specific | Industry: Finance / Banking

Many Wall Street watchers believe that the low-cost electronic trading of securities will destroy market making and brokerage. But this doom-and-gloom prognosis results from a fundamental misunderstanding of the way technology is changing the business. Companies that use the technology right can greatly increase the volume of the trades they process–and boost margins as well.

Content: Article | Authors: Charlotte M. Hogg, Jonathan A. Davidson, Léo M. Grépin | Source: McKinsey Quarterly | Subject: Finance | Industry: Finance / Banking

Why are so many on-line banking ventures-start-ups and incumbents alike-foundering? Despite the presence of more than 2,500 Western European banking sites on the World Wide Web, only eight million people in the region use the channel to either check their accounts or make transactions. We studied 65 leading banks in ten European countries to determine why customers are adopting on-line banking at different rates.
… [ Read more ]

Content: Article | Author: Jacques R. Bughin | Source: McKinsey Quarterly | Subjects: Industry Specific, International – Europe | Industry: Finance / Banking

This article describes the author’s experience with the development of the first Yugoslav Internet payment processing system. The system’s architecture is very similar to the Three Domain (3D) model that started to emerge later. This success story is worthwhile sharing with a wider audience.

Content: Article | Author: Dragomir D. Dimitrijevic, Ph.D. | Source: TechnologyEvaluation.com | Subject: IT / Technology / E-Business | Industry: Finance / Banking

Technology has brought major improvements to the cross-border payment process. But the old problems, including payments never showing up or showing up very late, continue to hamper global commerce.

Content: Article | Author: Richard H. Gamble | Source: Business Finance Magazine | Subjects: Finance, International | Industry: Finance / Banking

Article discusses the reset security, also known as the “death-spiral convert” and sometimes as a “toxic” (privately held preferred stock or bonds that can be exchanged for shares of common stock. An investor will offer a company cash in exchange for a percentage of the company, but with a catch: The investor wants a guarantee that the investment’s value won’t fall (or won’t fall much). … [ Read more ]

Content: Article | Author: Cory Johnson | Source: The Standard | Subject: Finance | Industry: Finance / Banking

Although digital cash was a compelling concept, companies went out of business left and right trying to make it work — until PayPal came along. PayPal’s simplified idea of e-cash didn’t create a separate currency (instead sticking with the good old dollar), and signing up didn’t require any paperwork or credit checks. The service expanded exponentially when eBay users began to adopt it as a … [ Read more ]

Content: Article | Author: Damien Cave | Source: salon.com | Subjects: Finance, IT / Technology / E-Business | Industry: Finance / Banking

David Komansky, chairman and CEO of Merrill Lynch & Co., finds it ironic that the head of a financial services firm gets asked to lecture on the new economy these days. “Our company has been called ‘a relic from the Cro-Magnon era’,” he said during a visit to Wharton. “But because of the patterns that started in the last year, some of the virtues of … [ Read more ]

Content: Article | Author: David Komansky | Source: Knowledge@Wharton | Subjects: Finance, Trends / Analysis | Industry: Finance / Banking

Article discusses the concept of business development corporations (BDCs) and highlights some of the players.

Content: Article | Author: Lewis Braham | Source: BusinessWeek | Subject: Finance | Industry: Finance / Banking

ABSTRACT: This article examines empirically the dynamic relationship between two key US money market interest rates – the federal funds rate and the 3-month Treasury bill rate. Using daily data over the period 1974-1999, we show that a long-run no-arbitrage relationship exists between these two rates. This relationship is shown to be remarkably stable across monetary policy regimes of interest rate and monetary aggregate targeting. … [ Read more ]

Content: Article | Authors: Daniel L. Thornton, Lucio Sarno | Source: Federal Reserve Bank of St. Louis | Subjects: Economics, Finance | Industry: Finance / Banking

This article first reviews methods of foreign exchange intervention and then presents evidence—focusing on survey results—on the mechanics of such intervention. Types of intervention, instruments, timing, amounts, motivation, secrecy and perceptions of efficacy are discussed.

Content: Article | Author: Christopher J. Neely | Source: Federal Reserve Bank of St. Louis | Subjects: Economics, Finance | Industry: Finance / Banking

Quite an impressive amount of recent academic research focuses on the idea that financial factors may cause or reinforce real fluctuations. In these models, it is typically a monetary policy shock that serves to lower the value of an asset which is used to secure a firm’s borrowing, thereby generating broad credit channel effects of monetary transmission. We empirically investigate the impact of corporate risk … [ Read more ]

Content: Article | Author: Ingo Fender | Source: Bank for International Settlements | Subjects: Economics, Finance | Industry: Finance / Banking

When a credit card company changes interest rates or increases the credit limit of its consumers, how do these consumers respond? The answers are far from predictable, as David B. Gross of the University of Chicago and Wharton’s Nicholas S. Souleles have found out. In a paper titled, “Consumer Response to Changes in Credit Supply: Evidence from Credit Card Data,” Gross and Souleles examine the … [ Read more ]

Content: Article | Authors: David B. Gross, Nicholas S. So | Source: Knowledge@Wharton | Subjects: Economics, Finance | Industry: Finance / Banking

This 117 page .pdf paper addresses the causes, consequences and implications of cross-border consolidation of financial institutions. It finds that, on average, domestic banks have higher profit efficiencies than foreign banks (with the exception of U.S. banks which operate efficiently at home and abroad). The results do not preclude successful international expansion but they do suggest limits to global consolidation.

Content: Article | Author: Various | Source: Federal Reserve Board (FRB) | Subject: Finance | Industry: Finance / Banking

describes Offroad Capital, a pioneer in online private equity placements

Content: Article | Source: Forbes | Subject: Finance | Industry: Finance / Banking