I ran Insurance Company intends to raise its financial credit and render enhanced services to the insured and the public. The need to meet financial obligations arising from the claims requires determination of the optimum deposited claims reserve with banks. Therefore, the present research study aimed at finding the loss ratio (incurred losses to premiu...

This paper studies the duration or survival time of commercial banks active in the Moscovian three month Rouble deposits market, during the 1994-1997 period. The privatization process of the Russian commercial banking industry, after the 1988 banking reform, caused a massive entry of new banks followed by a period of high rates of exit. As a consequence, many firms went bankrupt without refundi...

I n a modern economy, a large fraction of payments for goods and services involve the services of one or more banks. The provision of payment services is, in fact, one of the distinguishing characteristics of banks. A bank-intermediated payment instrument, such as a check, typically communicates instructions to the buyer’s bank to make payment to the seller or the seller’s bank. Often, then, we...

The last few decades have been a period of tremendous change in the U.S. banking industry. One of the most notable changes in this period has been a rapid consolidation among banks and banking organizations. Technological change, financial innovation, and the liberalization of bank expansion powers have all contributed to this consolidation trend. By 2006, the number of banks and banking organi...

T he U.S. banking system has consolidated in recent years, and the shares of total banking system assets and deposits held by the very largest banking organizations have increased markedly. The number of commercial banks reached its post-World War II peak of 14,483 banks in 1984. By year-end 2012, the number of commercial banks had declined to 6,096. In 2001, the five largest commercial banks h...

Coined under the rubric of “shadow banking,” the nonbank/bank nexus is largely seen as a form of regulatory arbitrage. However this is an incomplete view since there is genuine economic demand for such services. This paper attempts to explain the economics that supports the demand/supply for this market, the systemic risks that can arise, and regulatory and broader policy implications. Current ...

Since 80s, along with the heating-up competition in finance industry and the liberalization trend of financial supervision, a tendency of integration appears in world three financial service fields, namely banking, insurance, and security. It threats the banking business. The banking industry that always possesses the core position in financial system faces enormous challenges. On the other han...

The statements, findings, conclusions, and recommendations found in this study are those of the authors and do not necessarily reflect the views of the Office of Advocacy, the United States Small Business Administration, or the United States Government. Executive Summa ry This research examines the implications to the amount of credit available to small businesses from the rapid and pervasive c...

We show that in stark contrast to conventional wisdom, maturity transformation does not expose banks to significant interest rate risk. Aggregate net interest margins have been near-constant over 1955–2013, despite substantial maturity mismatch and wide variation in interest rates. We argue that this is due to banks’ market power in deposit markets. Market power allows banks to pay deposit rate...