It is a challenging task to design orthogonal filter banks, especially multidimensional (MD) ones. In the onedimensional (1D) two-channel finite impulse response (FIR) filter bank case, several design methods exist. Among them, designs based on spectral factorizations (by Smith and Barnwell) and designs based on lattice factorizations (by Vaidyanathan and Hoang) are the most effective and widel...

How Well Capitalized Are Well-Capitalized Banks? T he wave of bank and savings and loan failures in the 1980s and early 1990s, and the resulting losses to deposit insurance funds, served to highlight the need for banks to hold sufficient capital to survive difficult times. In addition, many argued that deposit insurance made it imperative that banks be better capitalized, since deposit insuranc...

J apanese banking problems have received substantial attention worldwide. Critics of Japanese policymakers have argued that problems at Japanese banks threaten the Japanese economic recovery. They also point out that because Japanese banks have been among the most active in expanding their presence beyond their domestic borders, they could play a major role in prolonging the financial problems ...

I analyze banks’ incentives to acquire expertise in judging the credit-worthiness of borrowers in an industry with uncertain business conditions. The optimal industrial organization of bank lending features several banks with industry expertise, as well as a competitive fringe of banks without such expertise. The analysis provides a foundation for analyzing the relative merits of focus vs. dive...

In this paper we re–examine banks’ lending behavior taking into account changes in the stance of monetary policy in conjunction with changes in financial sector uncertainty. Using a very large data set covering all banks in the US between 1979–2000, we show that financial sector uncertainty plays an important role in banks’ lending decisions: for a given size classification, less liquid banks (...

Numerous studies have found that US commercial banks are quite inefficient, and we find that, on average, banks became more technically inefficient between 1984 and 1993. Our analysis of productivity change, however, shows that technological improvements adopted by a few banks pushed out the efficient frontier, and that, on average, commercial banks experienced productivity gains. For banks wit...

The European sovereign debt crisis has impaired many European banks. The distress on the European banks may transmit worldwide, and result in a large-scale knock-on default of financial institutions. This study presents a computer simulation model to analyze the risk of insolvency of banks and the consequent knock-on defaults in a bank credit network. Simulation experiments quantify the worst i...

This paper analyses the role of banks in financing SMEs in Britain and Germany. It applies a sociological institutionalist approach to understand how banks construct and manage risk, relating to SME business. The empirical analysis is based on the results of a comparative survey of a sample of British and German banks and also refers to statistical material produced by the banks themselves. The...

The paper by Manmohan Singh covers a lot of ground, and lays out a number of very interesting issues about the nature of the shadow banking sector, and the extent to which the activities of banks and non-banks are interrelated. In particular, it points out that, in addition to deposits, a significant share of bank lending is ultimately funded by non-banks. This funding can be described as ‘indi...

This study develops a stress-testing framework to assess liquidity risk of banks, where liquidity and default risks can stem from the crystallisation of market risk arising from a prolonged period of negative asset price shocks. In the framework, exogenous asset price shocks increase banks’ liquidity risk through three channels. First, severe mark-to-market losses on the banks’ assets increase ...