This paper is an exploratory analysis of the role that banks play in supporting what Jevons called the "mechanism of exchange.'' It considers a model economy in which exchange activities are facilitated and coordinated by a self-organizing network of entrepreneurial trading firms. Collectively,...

The 2007-8 global financial crisis has shown the failure of private finance to efficiently allocate capital to finance real capital development. The resilience and stability of Brazil’s financial system has received attention, since it navigated relatively smoothly through the Great Recession...

One of the essential functions of the financial system is to provide the long-term funding needed for long-lived and expensive capital assets. However, one of the main difficulties of the current private financial system is its failure to provide such long-term financing. The paper specifically...

The 2007-8 global financial crisis has shown the failure of private finance to efficiently allocate capital to finance real capital development. The resilience and stability of Brazil's financial system has received attention, since it navigated relatively smoothly through the Great Recession...

One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with meaningful macro-financial linkages, i.e., taking into account spillover effects and other forms of contagion. We come up with an approach to simulate the potential impact of...

1. Trends and developments in the Spanish banking sectorWhile the deleveraging of the banking system appears to be nearing its end, the number of employees and branches in the sector continues to fall. Solvency and asset quality have further improved. In terms of the system's results, income...

The issue regarding cross-border business has been a key issue on the minds of businesses across the globe. As organizations as well as firms seek to maximize their profit through operating in different jurisdictions, it is quite imperative to take a critical look at the issue regarding...

Unexpected changes in interest rates can significantly alter a bank's profitability and market value of equity. Interest rate risk encompasses this volatility. Depending on the cash flow characteristics of the Bank's assets and liabilities, interest rate changes may raise or lower net interest...

The recent report by Standards and poor has generated a lot of controversies. While some commentators are saying such report should be discarded others are clamouring for its proper perusal and examination. Investors are beginning to panic over their investments. The question in the lips of...