Ex ante capital position,changes in the different components of regulatory capital and bank risk

We investigate the impact of changes in capital of European banks on their risk-taking behaviour from 1992 to 2006, a time period covering the Basel I capital requirements. We specifically focus on the initial level and type of regulatory capital banks hold. First, we assume that risk changes depend on banks’ ex ante regulatory capital position. Second, we consider the impact of an increase in each component of regulatory capital on banks’ risk changes. We find that, for highly capitalized, adequately capitalized and strongly undercapitalized banks, an increase in equity or in subordinated debt positively affects risk. Moderately undercapitalized banks tend to invest in less risky assets when their equity ratio increases but not when they improve their capital position by extending hybrid capital or subordinated debt. On the whole, our conclusions support the need to implement more explicit thresholds to classify European banks according to their capital ratios but also to clearly distinguish pure equity from hybrid and subordinated instruments.     

Growth,profits and foreign ownership in the Brazilian banking industry

The deregulation of the financial markets and their progressive globalization has favoured the internationalization of banking. Moreover, during the international financial crisis, the presence of foreign banks has increased in countries experiencing faster economic growth, such as Brazil. In this context, the aim of this study is to analyze the growth and profitability of the financial institutions in Brazil, taking into account the possible non-linearity of the relationship, the differences between Brazilian and foreign institutions and the effect of the crisis. Our results indicate that the entry of foreign institutions has a direct effect on the Brazilian banking industry.     

银行贷款与利用外资对经济增长作用比较的实证研究

我国的经济发展在近些年来始终保持着良好的态势，而支撑经济增长的因素众多，其中，作为企业运行的必要前提的资金来源问题，是我们要重点关注的。传统的资金来源就是银行贷款，另外一个值得关注的渠道为外资。本文对这两个因素加以比较，运用实证分析工具来考察两者发挥作用的大小，从而对政策取向产生某些启示。     

解析外汇储备对中国货币政策的影响

本文从中国外汇储备的现状入手,分析了中国外汇储备迅猛增长的原因,封高外汇储备封中国货币政策影响的机理追行了探讨,从而得出结论：高外汇储备使基础货币的可调控空间减小,弱化了中国货币政策的自主性。     

人民币汇改后中国资本市场改革的成就与问题

解决资本市场与货币市场的不平衡发展是中国实行金融改革的主要动因之一，随着大力发展资本市场的中央文件陆续提出，中国资本市场改革进展顺利，2005年7月人民币汇改后，资本市场也随之进入发展新阶段。过了2006年中国加入WTO承诺——对外开放金融业即将兑现，此前出现的新机遇和新问题亟待我们去分析解决，以积极应对对外开放对我国金融业带来的冲击并把握金融业开放给我们带来的契机。     

人民币汇改后中国资本市场改革的成就与问题

解决资本市场与货币市场的不平衡发展是中国实行金融改革的主要动因之一,随着大力发展资本市场的中央文件陆续提出,中国资本市场改革进展顺利,2005年7月人民币汇改后,资本市场也随之进入发展新阶段.过了2006年中国加入WTO承诺--对外开放金融业即将兑现,此前出现的新机遇和新问题亟待我们去分析解决,以积极应对对外开放对我国金融业带来的冲击并把握金融业开放给我们带来的契机.     

Reconsidering bank capital regulation: a new combination of rules,regulators, and market discipline

Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.We propose a revised system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only common equity should be recognized as regulatory capital, and risk weighting of assets should be abandoned; capital requirements should be assigned on an institution-by-institution basis according to a regulatory (s, S) approach developed in the paper; a standard for prompt, corrective action is incorporated into the (s, S) approach.     

The impact of Chinese monetary policy on co-movements between money and capital markets

From 2010 to 2017, with interest rate liberalization and capital market development in China, the impact of monetary policies on China’s financial markets underwent continuous evolution. Using the DCC-GARCH model, this study investigates the transmission process of monetary policies from the money market to capital markets (stock and bond markets). The results show that in the early stage the instability of the money and stock markets and the downturn in the bond market are primarily caused by the block of monetary policy transmission and the paucity of fund sources in the capital markets. Subsequently, the outbreak of the 2013 money shortage and the 2015 stock market crash are also closely related to monetary policies. In the later periods, the money and stock markets maintain a low degree of correlation for a long time, reducing the impact of destabilizing factors on the stock market. By contrast, with the advancement of interest rate reform and the optimization of bond market structure, the bond market is highly relevant to the money market. The central bank regulates the bond market more effectively using both traditional and innovative monetary policy tools.     

The role of social capital in the labour market in China1

Social capital is considered to play an economic role in labour markets. It may be particularly pertinent in one that is in transition from an administered to a market‐oriented system. One factor that may determine success in the underdeveloped Chinese labour market is thus guanxi, the Chinese variant of social capital. With individual‐level measures of social capital, we test for the role of guanxi using a dataset designed for this purpose, covering 7,500 urban workers and conducted in early 2000. The evidence is consistent with the basic hypothesis. Both measures of social capital – size of social network and Communist Party membership – have significant and substantial coefficients in the income functions. Social capital can have influence either in an administered system or in one subject to market forces. It appears to do so in both parts of the labour market.     

The role of banks in CESEE countries: exploring non-standard determinants of economic growth

This paper explores the finance–growth nexus in 14 countries from Central, Eastern and South-eastern Europe (CESEE) over the 1995–2015 period. It investigates whether including two ‘non-standard’ variables, i.e. a credit cycle dummy and foreign bank relevance, deepens our understanding of the role of a typical financial determinant of economic growth, i.e. bank credit. We find evidence of a negative impact of bank credit on economic growth and the significance of cyclical fluctuations of bank credit. In contrast, a higher market share of loans granted by foreign-owned banks in a cyclical upswing and stock market capitalisation are found to have a proactive effect on growth.     

产业结构调整的资本市场约束

近年来,资本市场繁荣,资本市场收益率激增,产业中的微观企业成为了资本市场的主体,希望在资本市场中迅速实现资本增值,为企业自身的产业结构合理发展、优化升级创造资本条件。然而,这种行为致使产业结构调整产生波动,产业内部的合理化受到阻碍,产业之间的优化升级遇到鸿沟。甚至出现了产业结构不合理,产业发展倒退现象。资本市场的快速发展最终对产业结构调整产生了投资约束。     

Commercial bank ownership and performance in China

This study examines the determinants of bank performance based on proxy variables that assess the quality of assets, profitability, liquidity and overall performance. Using a sample of 111 Chinese commercial banks over the period of 2000–2012, we find that foreign banks appear to have better asset quality and overall performance although lower profitability compared to domestic banks. In contrast, the state-owned banks tend to be more profitable and have better liquidity position compared with other domestic banks and foreign banks. At bank level, equity/liability ratio exerts significant influence on overall bank performance, while at the macroeconomic level, per capital GDP, GDP growth, inflation and unemployment rates appear to have a bearing on bank performance.     

基于风险视角的商业银行资本结构研究

基于银行风险行为的异质性,以效用最大化为期望目标,通过推导商业银行资本约束曲线和效用曲线,建立资本－风险局部均衡模型,拓展资本监管效应理论分析框架,在资本监管强化背景下,运用该模型进一步分析商业银行的风险行为、经营行为对资本监管约束的差异性反应。建立的资本－风险均衡模型有别于前人的成果,具有较强的包容性和较高的解释能力。     

The impact of international information disclosure requirements on market discipline

Financial regulators are challenged with finding the most efficient and effective ways to monitor banks given an expanding and complex international financial system. Market discipline has grown in importance as a way to discourage banks from taking on unnecessary risk. One of the main drivers of market discipline is information disclosure. While the literature on market discipline is expansive, there are no known studies on the impact of individual information disclosure requirements on market discipline. Our study investigates which specific disclosure requirements influence financial investors to discipline banks and which do not. We find that information disclosure requirements primarily reduce or have no impact on market discipline practices.     

The dynamic impact of intellectual capital on firm value: evidence from China

We examine the dynamic relationship between intellectual capital (measured by human capital and organizational capital) and firm value of Chinese listed firms. We do causality identification using system GMM and IV estimation, and find no significant relation between human capital and firm value, but organizational capital positively affects firm value with a lag. Our findings are robust to firms with different property rights, of different sizes, or in different industries, with the only exception of capital-intensive firms, in which human capital has a significant influence on firm value. The results imply that the improvement of organizational system plays a more important role in raising the value of a firm in a typical developing country, like China.     

The impact of foreign direct investment on the relative return to skill

Since the early 1980s, China has adopted favourable economic policies to attract FDI in order to facilitate technology development. Since inward FDI induces either sector‐ or factor‐biased technical progress, the impact of FDI on the distribution of income between skilled and unskilled labour is not trivial. This paper introduces vertical product differentiation to analyze the impact of FDI on the return to skill and concludes that, for a labour abundant country, this impact depends on whether the FDI‐induced technology transfer is skill‐ or labour‐biased, regardless of which sector receives FDI. The analysis shows that FDI with relatively labour‐biased technology will decrease the wage gap while FDI with relatively skill‐biased technology will increase the profit margin of the host country’s exports as well as its wage gap. The findings provide policy insights for FDI recipient countries in balancing wage growth between skilled and unskilled workers by managing inward FDI with relatively labour‐biased and skill‐biased technologies. This is particularly important for China given the expected further increase of inward FDI following its imminent membership of the WTO. JEL classification: F23, J31, P33.     

The determinants and profitability of switching costs in Chinese banking

This article models the determinants of bank switching costs in China in terms of bank characteristics and non-bank variables. It also determines the contribution of switching costs to banks’ profits. Using a sample of 151 banks over the period 2003–2013 it reports a positive relationship between bank profitability and switching costs. The main result is that bank size measured by total assets has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs.     

Return seasonality in the foreign exchange market

I examine return seasonality in the foreign exchange market using currency futures during the period 1973?2015. All the G10 currency futures yield negative returns in January and this effect happens more often in the countries that have a tax year ending in December. In contrast, returns offered in April are positive. To exploit these anomalies, I use a seasonality strategy that selects portfolios based on their historical same-calendar-month returns. I find that this strategy does not work in the currency market, although I find consistent results with Keloharju et al. in the stock portfolios.     

How foreign investments contribute to economic growth of industrial parks in China: a production-frontier decomposition approach

We study the importance of foreign direct investment for economic growth of 52 Chinese industrial parks from 2007 to 2015. For this task, we extend a production-frontier methodology, specially designed to decompose economic growth into different sources, to take two types of capital into account. Our results reveal that foreign capital is necessary for boosting economic growth of the parks, but domestic capital played the main role.     

外资银行进入影响研究——基于面板数据和产业组织方法

本文基于我国14家银行1996—2005年的面板数据,对外资银行进入对我国银行业的短期影响进行了研究。实证结果表明,我国银行业对外资银行营业性机构数的增加反应不敏感,经营成本、盈利同外资银行市场份额的增加正相关,我国银行业市场符合结构一行为一绩效范式。本文认为,当前外资银行已经越来越快地融入我国金融体系,为应对外资银行进入的冲击,我国银行业应以金融控股公司模式实现综合经营,同时积极学习借鉴外资银行新的金融产品和管理经验。