It has become almost conventional wisdom that investors should avoid funds with high expense ratios. Like many nuggets of conventional wisdom, there is some truth, but many exceptions: some of the best funds come at the price of higher expense ratios. Financial planners need this type of...

In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...

Rating is a mark given by a rating agency to the debt of a banking company according to its capability to honour on due term the financial obligations resulting from this debt. The use of ratings is encouraged by the new banking prudential regulations issued on international market (Basel II...

This document presents a set of indicators designed to measure the credit risk implicit in the deposits maintained by domestic financial institutions in foreign countries. It discusses the theoretical definition of the indicators, the software implementation and a case of study based on the...

There are a wide range of local Social and Solidarity Economy (SSE) initiatives in Hungary. Initiatives are aimed at rural development (LEADER), community development, ecology, employment and settlement rejuvenation. Participants are not always aware whether they are more attached to the concept...

Managing current account balances – defining the value of the necessary closing level – is perhaps the most exciting daily routine activity of corporate financial managers. The relevant discussion of this subject in Corporate Finance by Brealey and Myers, one of the most popular manuals of...

In this paper we first develop an axiomatic measure of financial inclusion. This measure is readily implementable and useful to determine policy priorities to promote financial inclusion. Next, we demonstrate that supply side data on banking services can be usefully employed to measure financial...

This paper discusses the concept of leverage, its components and how to measure and monitor it. It proposes an innovative approach to assessing leverage based on flows using the concept of a marginal leverage ratio, which reveals the leverage related to new activities, as a valuable supplement...

The notion that some banks are “too big to fail” builds on the premise that governments will offer support to avoid the adverse consequences of disorderly bank failures. However, this promise of support comes at a cost: Large, complex, or interconnected banks might take on more risk if they...

Changes in the financial market and attempts at implementation of prudential regulation proposals after the recent financial crisis resulted in the scientific conference entitled International Conference on Management, Banking and Finance, held at the Faculty of Management, University of Warsaw,...