bank securities (stocks); changing banking facilities into securities in non-usurious banking

Big Data Cases in Banking and Securities

The Risk Effects of Combining Banking, Securities, and Insurance Activities

We create synthetic universal banks to examine the impact of securities and insurance activities on the banking firms’ risk. We find that these nonbank activities reduce the overall risk to the firm but increase systematic market risk—thus reducing the firm’s ability to diversify. Moreover, the unit price of risk does not appear to contain a risk premium to price the enhanced systemic risk expo...

Securities Services Bank : IT Platform Strategy

The acquisition case was built around an ambitious business plan that called for rapid growth of SSB’s business over the next three years, accompanied by cost reductions and efficiency improvements. Specifically, the business plan relied on the winning of five new large private banks as justification for a €40 million IT investment directed at improving service quality and lowering IT maintenan...

Bank-Firm Relationships and Contagious Banking Crises

This paper shows that in an open economy a banking system with close bank-firm relationships may be easily subject to contagious banking crises, because it is difficult to distinguish between “crony capitalism” and main bank relationships. There is cronyism if banks renew loans to insolvent projects and, as a consequence, accumulate losses. On the other hand, banks could be only temporarily ill...

Complex Securities

This paper proposes a dynamic equilibrium model to study the implications of the complexity of financial securities for investor behavior, asset prices, and welfare. The key assumption is that, unlike fund managers, non-professional investors cannot directly observe complex securities’ payoffs. In equilibrium, fund managers overinvest in complex securities as these potentially allow them to inf...

Money and Modern Banking without Bank Runs

Bank runs in the literature take the form of withdrawals of demand deposits payable in real goods, which deplete a …xed reserve of goods in the banking system. That framework describes traditional bank runs based on currency withdrawals as occurred historically in the U.S. and more recently in developing countries. However, in a modern banking system, large withdrawals typically take the form o...