Financial Crises: Theory and Evidence Franklin Allen University of Pennsylvania Ana Babus Cambridge University Elena Carletti European University Institute June 8, 2009 1. Introduction Financial crises have been pervasive phenomena throughout history. Bordo et al. (2001) find that their frequency in recent decades has been double that of the Bretton Woods Period (1945-1971) and the Gold Standard Era (1880-1993), comparable only to the Great Depression. Nevertheless, the financial
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Market liquidity From Wikipedia, the free encyclopedia Jump to: navigation, search "Liquidity" redirects here. For the accounting term, see Accounting liquidity. In business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value. Money, or cash in hand, is the most liquid asset, and can be used immediately to perform economic actions like buying, selling, or paying debt, meeting immediate
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1，short-term liquidity risk The short-term liquidity risk of IBM appears low. A,The current and quick ratios were steady during the three years and at healthy levels. The current ratio, which indicates the amount of cash available and other current assests of the firm, hovers around 1.2, which is common. The ratio reaches its peak in the year 2009 which is 1.3593, and decreases slightly in 2010. Accounts report inventories at acquisition cost. The quick ratio has the same trend with current
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Managing Risk at Commercial Bank 1. Interest Rate Risk Interest Rate Risk (IRR) is the impact on interest income of the Bank due to possible changes in market interest rates as compared to current level. IRR constitutes the most significant component of market risk exposure of the Banking Book. Hence, the Bank monitors IRR on an ongoing basis giving due consideration to re-pricing characteristics of all assets and liabilities. Rate shocks of different magnitudes are
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DRAFT RTS ON ASSESSMENT METHODOLOGY FOR IRB APPROACH - Consultation Paper - 16 March 2015 Published by EBA Publication date 12 November 2014 Read by Hasan Isik Link CHAPTER 1- General rules for the assessment methodology 32 CHAPTER 2- Assessment methodology of roll out plans and Permanent partial use of Standardised Approach 35 CHAPTER 3- Assessment methodology of the function of validation of internal estimates and of the internal governance
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Courtney T. Powers E562X732 Accounting 610-Special Entities & Complex Issues Spring 2015 Assignment: Not For Profit Balance Sheet Analysis – Rainbows United, Inc. Date: May 6, 2015 Rainbows United was founded in 1972 as a center for children with severe mental and physical disabilities to receive special education that was not available in the public school system. Since their establishment Rainbows has continually been on
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short run, or current assets. “As the name suggests, short-term solvency ratios as a group are intended to provide information about a firm’s liquidity (liquidity measures). The primary concern is the firm’s ability to pay its bills over the short run without due stress” (pg. 57). Some of the short-term solvencies are: Current Ratio, Quick Ratio, and Liquidity Ratios. When a business requires cash quickly, a creditor would be interested in the organization’s current ratio. The current ratio measures
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Quiz: * Case can go up by 200 Bp or down by 100 Bp * Treasury Bill matures at FV of $100 * 2 cents per bond commission on every transaction * T-Bill = rf * In cases no interest risk, default risk or liquidity risk. * T-Bill valuation Fair Value = 100/(1+current rfr)^weeks remaining/52 * Names * TB6M 6 month T-Bill * TB12M 12 Month T-Bill * 1YCP 10% coupon (semi-annual) 12 month T-bond * Accrued interest = (time since last coupon/312)*Coupon amount
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RISK REGISTER: Carmel Soda Company. The Carmel Soda is a worldwide leader in soft drinks. They are on every continent and in every country. Below are eight risks that have been identified that could contain some problematic issues for the company. |Risk |Description |Owner |Source |Likelihood of Occurrence* |Severity of Impact* |Controllability* | |Process/execution |Carmel
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Paper name: “What is Strategy?” Author: Michael E.Porter During the study process i have red few articles on company strategy planning importance and the process of it's implementation. The paper which is chosen as the base for this work goes under the title “ What is strategy?”, contributed by Michael E. Porter. The main idea of this paper is the importance of company's strategy and operation effectiveness for reaching the corporate goals. The author notes that both are essential for
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