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Central counterparty clearing: constructing a framework for evaluation of risks and benefits

Ripatti, Kirsi - Suomen Pankki - 2004

pan-European financial infrastructure for payments and securities clearing and settlement. <p> Central counterparty …’s securities market infrastructure – clearing and settlement. Because of the importance of its role, a CCP must have sound risk …-benefit analysis in a Finnish/Nordic-Baltic clearing and settlement infrastructure that incorporates a CCP solution. This is an updated …

Persistent link: https://www.econbiz.de/10005419682

Gridlock Resolution in Interbank Payment Systems

Bech, Morten L.; Soramäki, Kimmo - Suomen Pankki - 2001

The paper analyses the severity of gridlocks in interbank payment systems operating on a real time basis and evaluates by means of simulations the merits of a gridlock resolution algorithm. Data used in the simulations consist of actual payments settled in the Danish and Finnish RTGS systems....

Persistent link: https://www.econbiz.de/10005190740

Systemic Risk in the Finnish Payment System: an Empirical Investigation

Kuussaari, Harri - Suomen Pankki - 1996

it is possible for settlement failures to spread. This work should be done in cooperation with international …

Persistent link: https://www.econbiz.de/10005190765

Payment and Settlement Systems in Finland 1995

Saarinen, Veikko; Tanila, Kirsti; Virolainen, Kimmo - Suomen Pankki - 1996

This paper is an overview of domestic payment and settlement systems in Finland. It contains an up-to-date description … of institutional aspects of payment systems, payment media used by non-banks, interbank exchange and settlement circuits … and securities settlement systems. At the end of the paper, annual statistics are presented on payment and settlement …

Persistent link: https://www.econbiz.de/10005649002

Information acquisition and learning from prices over the business cycle

Mäkinen, Taneli; Ohl, Björn - Suomen Pankki - 2014

We study firms’ incentives to acquire costly information in booms and recessions to understand the role of endogenous information in explaining business cycles. We find that when the economy has been in a recession in the previous period, and firms enter the current period with a pessimistic...

Persistent link: https://www.econbiz.de/10010818998

Asymmetric information in credit markets and entrepreneurial risk taking

Vesala, Timo - Suomen Pankki - 2004

The paper constructs a search-theoretic model of credit markets with a bilateral trading mechanism that enables the manageable introduction of asymmetric information. Borrowers´ success probabilities are unobservable to financiers, but the degree of risk in observable projects can be used as a...

Persistent link: https://www.econbiz.de/10005207166

Bank competition and collateral: theory and evidence

Hainz, Christa; Weill, Laurent; Godlewski, Christophe - Suomen Pankki - 2008

We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical model incorporating information asymmetries in a spatial competition framework where banks choose between screening the borrower and asking for collateral. We show that presence of...

Persistent link: https://www.econbiz.de/10005190728

The adverse selection problem in imperfectly competitive credit markets

Mälkönen, Ville; Vesala, Timo - Suomen Pankki - 2006

We study the adverse selection problem in imperfectly competitive credit markets and illustrate the circumstances where a separating equilibrium emerges, even without collateral. The borrowers are heterogeneous in their preferences concerning the banks. Separation obtains in market segments...

Persistent link: https://www.econbiz.de/10005648893

The role of comparing in financial markets with hidden information

Niinimäki, Juha-Pekka; Takalo, Tuomas; Kultti, Klaus - Suomen Pankki - 2006

This paper studies how comparing can be used to provide information in financial markets in the presence of a hidden characteristics problem. Although an investor cannot precisely estimate the future returns of an entrepreneur’s projects, the investor can mitigate the asymmetric information...

Persistent link: https://www.econbiz.de/10005648914

Informed Trading, Short Sales Constraints and Futures' Pricing

Hietala, Pekka; Jokivuolle, Esa; Koskinen, Yrjö - Suomen Pankki - 2000

The purpose of this paper is to provide an explanation for relative pricing of futures contracts with respect to underlying stocks using a model incorporating short sales constraints and informational lags between the two markets. In this model stocks and futures are perfect substitutes, except...

Persistent link: https://www.econbiz.de/10005649005