Derivative Logic and the Banking System

• Autorzy: Wojciech Lis , Ruprecht Heusinger von
• Języki publikacji: EN

Abstrakty

EN

In this paper, we discussed the structure of stylized banking systems. We have distinguished between the Continental or German banking system and the Anglo-Saxon banking system. We have argued that the banking systems in CEE resemble the Continental banking system and we have shown, that there are many institutional reasons, why the existence of Continental banking systems is no random occurrence. In fact, given the structure, legał system and Information inefficiencies, plus the non-existing strength of the local investors, it seems optimal to finance an emerging economy in such a way. Given the Capital structure and needs of international regulation, this will put pressure on the balance sheets of the CEE banks. It remains for another paper to discuss the alternative ways of risk transfer and to argue, that asset backed securities seem especially suited to transfer risk out of local markets and local banks to the international investor. This would take advantage of the Anglo-Saxon banking system, which dominates the developed financial systems. Indeed, an international investor, holding a portfolio of CEE banks is in an ideał position to structure CEE asset backed securities to intermediate risk of his portfolio of short puts. Thus, the comparative advantages of both financial systems are optimized. (fragment of text)

Słowa kluczowe

EN

Banking system; Financial system; Banking system in market economy; Monetary policy

PL

System bankowy; System finansowy; System bankowy w gospodarce rynkowej; Polityka pieniężna

• Czasopismo: Economic and Environmental Studies
• Rocznik: 2007
• Numer: Vol. 10
• Strony: 173--183

Twórcy

autor

Wojciech Lis

• Małopolska School of Economics in Tarnow, Poland

autor

Ruprecht Heusinger von

• Cracow University of Economics, Poland

Bibliografia

• Chance Don M., Analysis of Derivatives for the CFA Program, Charlottesville: AIMR, 2003.
• Crouhy M., Galai D., Mark R., Risk Management, New York: McGraw-Hill, 2001.
• Kolb R. W., Futures, Options and Swaps, 3rd edition, Oxford: Blackwell, 2000.
• Merton R. C., "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates", in: Journal of Finance, 29, 1974.