Deposit Insurance, Capital Regulations, and Financial Contagion in Multinational Banks

Abstract:  Banking sector globalization has caused an expansion in foreign-owned bank assets. In this paper we analyse the effects of a MNB's liability structure upon its investment in a foreign country. We develop a model in which capital adequacy requirements introduce some deliberate underinvestment which counters deposit insurance-induced overinvestment. Diversification is unattractive with fixed bank capital requirements, because it reduces the expected value of the deposit insurance net. This effect applies in multinational banks (MNBs), where shocks to the home country economy alter the value of the deposit insurance net and hence affect overseas lending incentives. Thus, MNBs act as a channel for financial contagion. We discuss the policy implications of our results.     

中国对外资银行的监管制度分析——以相关外资银行管理条例为视角

外资银行是中国银行业的重要组成部分，中国于1994年、2001年和2006年先后颁布的三个外资金融机构管理条例及其相应的实施细则，集中体现了中国对WTO承诺的履行和外资银行监管制度的发展，也标志着中国银行业（中国加入WTO过渡期最长的一个行业）从此进入完全开放的时代。2006年12月，中国在入世过渡期结束时采用的新《中华人民共和国外资银行管理条例》在市场开放、履行WTO承诺等各方面有了很大进展。不过中国仍然需要在对外资银行的审慎监管、法人银行导向、国民待遇落实和统一监管等问题上做出进一步的努力.     

Earnings and capital management and signaling: the use of loan-loss provisions by European banks

This paper investigates the relationship between loan-loss provisions (LLPs) and earnings management in the context of the capital adequacy of Euro Area (EA) banks versus non-EA credit institutions. This paper also examines whether LLPs signal managements’ expectations concerning future bank profits to investors. Additionally, this paper traces the role of bank regulations and creditor protection systems in explaining income smoothing. Evidence drawn from the 1996 to 2006 period indicates that LLPs do reflect changes in the expected quality of a bank's loan portfolio for both groups of banks, and that earnings management is an important determinant of LLPs for EA intermediaries, whereas non-EA credit institutions use LLPs to signal private information to outsiders. The paper also finds that higher protection of creditors’ rights significantly reduces the incentives to smooth earnings for EA banks. During the recent financial crisis, EA bank managers are much more concerned with their credit portfolio quality and do not use LLPs for discretionary purposes, whereas LLPs at non-EA banks are used to smooth income more than for the purposes of managing capital ratios or conveying private information about future performance to the market.     

Further Evidence on Equity Market Contagion: the FSLIC's Solvency and the Liquidity Crisis of Financial Corporation of America

Whether pure contagion is more likely to occur when a federal deposit insurer is severely undercapitalized is an unanswered question. This paper provides evidence on this issue by examining the stock market reaction of savings and loans (S&Ls) to the crisis of Financial Corporation of America (FCA) in 1984, when the Federal Savings and Loan Insurance Corporation was fiscally unsound. Consistent with a contingent insurance guarantee hypothesis, the results show large, significant negative abnormal returns (ARs) for a portfolio of high insured deposit S&Ls during FCA's crisis.     

现阶段商业银行汽车贷款保证保险问题分析--兼评保监会《关于规范汽车消费贷款保证保险业务有关问题的通知》

保监会《关于规范汽车消费贷款保证保险业务有关问题的通知》在贷款流程、除外责任、索赔顺序、承保期限等方面对银行汽车贷款产生了较大的影响。该《通知》将被保险人(银行)的实质性审查义务作为保证保险合同生效的要件值得商榷,也没有合理、公平地划分保险公司和银行之间的风险。对此,作者认为,商业银行在汽车消费贷款中不能过分依赖保证保险,积极探索汽车贷款风险防范的其他途径,巧妙利用保险公司的先索抗辩权并不包括汽车的其他财产险、偷盗险等险种的有利条件,注意区分汽车贷款诈骗的情况,严防保险公司对诈骗做扩大解释,从而有效防范和化解汽车贷款义务中存在的风险。