Withdrawal Of Banks Research Articles

Does the Stock Market Compensate Banks for Diversifying into the Insurance Business?

This paper explores a wide range of corporate restructurings, all available deals from wire services, in the banking and insurance sectors that led to bancassurance ventures. An event study methodology is employed to calculate excess returns on and around the deals’ announcement date. Using both univariate and multivariate analysis the paper finds bank driven mergers, deal's size and regional categorization all triggering positive and significant market reactions. Unlike the univariate framework, multivariate analysis shows that geographic focus and language are not significant factors. The results also indicate that markets are indifferent with respect to bank withdrawals from the bank-insurance operations. Finally, Canadian, U.S. and European bank-insurance deals produce positive results, while Australasian bidders offer statistically insignificant equity returns.

Structural Break in the Real Exchange Rates: The Asian Crisis

This study estimates the break point in the residual variance and in the propagation mechanism of the real exchange rates at about the time of the Asian crisis that occurred in 1997, and provides some explanations for the breaks. The breaks in the residual variance increased the volatility of the real exchange rates, which given the overall effects of common adverse shocks to the countries seems to be reinforced by the sudden withdrawal of Japanese commercial banks' lending to the region. And the subsequent breaks in the propagation mechanism reduced the volatility, which reflects the change in the government policy stance to result in smoothing the pace of appreciation. In addition, the breaks in the nominal exchange rates rather than in the price ratios are mainly responsible for the breaks in the real exchange rates.

Simulation of an hypothetical out-of-phase instability case in boiling water reactor by RELAP5/PARCS coupled codes

A very complex type of power instability occurring in boiling water reactor (BWR) consists of out-of-phase regional oscillations, in which normally subcritical neutronic modes are excited by thermal-hydraulic feedback mechanisms. The out-of-phase mode of oscillation is a very challenging type of instability and its study is relevant because of the safety implications related to the capability to promptly detect any such inadvertent occurrence by in-core neutron detectors, thus triggering the necessary countermeasures in terms of selected rod insertion or even reactor shutdown. In this work, simulations of out-of-phase instabilities in a BWR obtained by assuming an hypothetical continuous control rod bank withdrawal are being presented. The RELAP5/Mod3.3 thermal-hydraulic system code coupled with the PARCS/2.4 3D neutron kinetic code has been used to simulate the instability phenomenon. Data from a real BWR nuclear power plant (NPP) have been used as reference conditions and reactor parameters. Simulated neutronic power signals from local power range monitors (LPRM) have been used to detect and study the local power oscillations. The decay ratio (DR) and the natural frequency (NF) of the power oscillations (typical parameters used to evaluate the instabilities) have been used in the analysis. The results are discussed also making use of two-dimensional plots depicting relative core power distribution during the transient, in order to clearly illustrate the out-of-phase behavior.

Bank Withdrawal

Bank Withdrawal

Does Compliance with the German Corporate Governance Code Have an Impact on Stock Valuation? An empirical analysis

Since 2002 company law requires listed German corporations to declare their degree of conformity to the German Corporate Governance Code (GCGC). We examine whether there is a pricing effect connected to the declared degree of compliance for a sample of (big) publicly traded German companies listed in the DAX 30 and MDAX. We find that the degree of compliance with the Code is value‐relevant after controlling for an endogeneity bias. This shows that the capital markets find the rules in the code meaningful and that there is capital market pressure to adopt the Code regulation. Our findings also suggest that the capital market fills a possible “control vacuum” resulting from the withdrawal of commercial banks from their (former) influential role in the German “insider control” corporate governance model.

Overpressure protection analysis of an advanced integral reactor

Overpressure protection analysis of KAERI's advanced integral reactor, which has been developed to verify the performance of the System integrated Modular Advanced ReacTor (SMART), has been performed using the Transients And Setpoint Simulation/Small and Medium Reactor (TASS/SMR) code. In the analysis, the loss of feed-water and the regulating bank withdrawal events on behalf of the decrease in the heat removal by the secondary system and the reactivity and power distribution anomalies are selected as the initiating events for the analysis because the highest peak pressures of the primary system occur during these events. Conservative assumptions and the various initial/boundary conditions have been applied to the overpressure protection analysis for the advanced integral reactor. Although the pressurization of the primary system occurs due to an unbalance between the power generation in the core and the heat removal through the steam generator, the peak pressures in the cases of using the loss of feed-water and the regulating bank withdrawal event as an initiating event are well below the acceptance criteria of 18.7 MPa, due to the reactor protection system and three pilot operated safety relief valves installed in the advanced integral reactor.

Financial Market Discipline in Early-Twentieth-Century Mexico

We test for the presence of market discipline in the banking sector in early-twentieth-century Mexico. Using financial data from note-issuing banks between 1900 and 1910, we examine whether bank fundamentals influenced the patterns of withdrawals and of note issue. We show that fundamentals were a strong determinant of bank withdrawals and note issue, indicating that market discipline was an important feature of the banking system in this period. This result crucially depends on correcting for selection bias generated by the exit of several banks in the 1907 crisis.

Subcriticality Measurement of Pressurized Water Reactors by the Modified Neutron Source Multiplication Method

Applicability of the modified Neutron Source Multiplication (NSM) method with extraction of the fundamental mode to subcriticality measurement has been investigated. This concept can be applied to the control rod worth measurement that is performed during reactor physics tests at periodical inspection of commercial PWRs. Following the feasibility verification in the previous study based on numerical analyses, its applicability has been proven in a more realistic situation; Regarding a withdrawal sequence of control rod banks during the PWR startup as a mockup experiment, subcriticalities with various control rod insertion patterns were estimated based on the modified NSM method. The subcriticality could be evaluated with good accuracy even with the mockup experiment where any special treatments for accurate measurement were not taken into account and furthermore the insensitivity of measuring signals by reactivity changes and their large fluctuations were seen. Some vital treatments for accurate estimation were identified: The reference subcritical state must be as closer to zero as possible. It is necessary to wait long enough for the delayed neutron effect to attenuate after a reactivity change by control rod bank withdrawal. Gamma-ray contamination contained in the detector signals should be corrected.

The Analysis of Pressurized Water Reactor and Boiling Water Reactor Reactivity Transients with CORETRAN and RETRAN-3D

A code environment based on the CORETRAN and RETRAN-3D codes for the three-dimensional (3-D) kinetic analysis of transients in Swiss light water reactors is currently being developed and implemented within the STARS project at the Paul Scherrer Institute (PSI). As a first step in the application of these codes, an assessment of both codes for the analysis of reactivity-initiated transients in pressurized water reactors (PWRs) was performed. For that purpose, the Nuclear Energy Agency benchmark exercises, consisting of rod ejection and uncontrolled rod bank withdrawal transients, were selected. These analyses showed that very satisfactory results could be obtained with both CORETRAN and RETRAN-3D. In this paper, a summary of the PWR results, along with an emphasis of important modeling options that were identified during that work, is presented. As a second step, it was considered important to assess both codes for boiling water reactor (BWR) reactivity transients. Therefore, in addition, the analysis of a hypothetical beyond-design-basis rod drop accident for a Swiss BWR core at end of cycle is presented in this paper. This transient, which was previously analyzed with another 3-D code at PSI, shows that also for BWRs, both codes give satisfactory results.

Argentina, a 'Parasite State' on the Verge of Disintegration

Argentina has more than twice the total debt of India whilst the latter has 28 times more population in roughly equivalent territories. According to Poder Ciudadano, a local NGO, in 1999 Argentine political parties spent 440 times more than those of Chile. These gross asymmetries help to show that Argentina's financial troubles must be attributed to her own political practices rather than to adverse circumstances or foreign scapegoats. By December 2001, overspending had manifestly destroyed the Argentine financial system. Across-the-board violations of property rights followed, through bank withdrawal restrictions and a debt default that was the biggest in world economic history. This paper analyses the breakdown of federal institutions, the atomisation of power and the erosion of governability that ensued as a consequence of the financial crisis. Mafia-style political practices, an endemic evil in the background of Argentine politics, jumped to the forefront as a consequence of this institutional breakdown.

Italian multinational banking in interwar east central Europe

Laura Stanciu, Italian multinational banking in interwar east central EuropeThis article examines the interwar development of multinational investment undertaken by the most prominent Italian universal bank — Banca Commerciale Italiana — in Bulgaria, Hungary, Poland and Romania, referred to here as east central Europe. It analyses the extent to which considerations concerning universal banking's development are valid in the case of Italian multinational investment in this region. The article is neither a study of the 1930s financial crisis nor an analysis of the Italian universal banking per se. Instead, it questions the implicit relationship between the fate of the activities of Banca Commerciale Italiana in east central Europe and the general problems of the universal banking system during the early 1930s. Evidence seems to suggest that the bank's withdrawal from the region, beginning in the late 1920s, was more a result of managerial shortcomings and unsound investment decisions than the crisis.

La stabilisation russe en 1995 : le pari de l'ancrage par le change

Stabilizing Russia in 1995 : taking a chance on anchoring the rouble. In 1995, the main instrument used for stabilizing the money supply in Russia was the exchange rate. Indeed, from July 1995, the movements of money in Russia were contained within limits of 4,300 and 4,900 roubles to the dollar in the second half of 1995, and then 4,550 and 5,150 roubles to the dollar from the 1st January, 1996. The lack of regulatory financial instruments - inoperative guidance rates, the central Bank's withdrawal of procedures for invitation to tender, a sizeable increase in reserve requirement - has left the exchange rate as one of the only operative instrument of disinflation. This policy is based upon a specific structure of foreign exchange markets which are closely monitored by central Bank : on the one hand, there exist stock exchange markets where the prime exchange rate of the rouble is determined, and, on the other, a mutually agreed interbank market where 80% of transactions are carried out. The rouble "corridor" has up till now been a clear success : it has allowed expectations to be stabilized, and therefore played its part in the steady disinflation which marked the second half of 1995. Observance of the "corridor" took place without any significant change in the level of currency reserves, which have stabilized at 7,5 billion dollars since the month of July. However, at the same time this policy carries with it certain risks, which may in the long run make it unworkable. On the one hand, the actual rise in the value of Russian currency makes exports less competitive. It is true that, at the moment, the trade balance is not adversely affected by the anchoring of the rouble, since it continues to show a healthy surplus. But an overvalued currency may hamper the development of a processing industry (at present in continuous decline) which alone could ensure the Russian economy reliable growth. As for monetary policy, the lack of instruments for monitoring banks liquidity, and the existence of an estimated 20 billion dollars' worth of savings lying idle mean that central Bank's sterilization efforts on the exchange market are doomed to failure. The anchoring of the rouble involves the prioritizing of objectives, with the exchange objective henceforth taking precedence over purely financial objectives. But above all, anchoring the rouble has effected only a conjunctural change in the demand for money. To ensure a return toward the rouble, this policy - admittedly necessary - will not suffice, so long as the shaky and overblown banking system fails to inspire confidence in the depositors. As such, an exchange policy, however stringent and well-intentioned, cannot avoid the necessity for a full-scale structural overhaul of the Russian financial system.

Expected Performance of a Queueing System with Ancillary Activities

Many service organizations follow a scheduling policy whereby employees alternate between direct customer service (e.g. bank deposits and withdrawals) and an ancillary activity (e.g. bookkeeping, paperwork). When queues are short, employees are diverted to ancillary activities; when queues become long, employees return to customer service. This paper evaluates trade-offs between the system objectives of (1) minimizing customer delay, (2) minimizing teller idle time, and (3) minimizing the disruption of ancillary activities, for queueing systems with ancillary activities. Customers are assumed to arrive by a stationary Poisson process, and service times are exponential random variables. In terms of objectives (1) and (3), the best of four policies studied is to add a server when the queue size per server reaches a maximum and remove a server when the queue size equals zero. The difference in teller idle time between the policies is generally small, particularly when the traffic intensity is large.

The Process of Soiling and the Life of Bank Notes in the Netherlands

SUMMARY This paper presents a statistical method for estimating probabilities of soiling and withdrawal of bank notes. The method is applied to seven circulation trials of Dutch bank notes of different denominations. The best fitting distribution for the soiling process is selected for each trial and its parameters are estimated. Then the average soiling time and the average life of the notes are calculated. A notable aspect of our analysis is that large differences with respect to the soiling process were found among notes of one and the same denomination in different circulation trials. AFTER its conception in the paper mill and the printing works, the life of a Dutch bank note starts at the moment it is brought into circulation by the Netherlands Bank. Then begins a wandering through the hands of market vendors, trouserpockets, purses, handbags, paying- counters and private vaults. During this circulation the bank note becomes soiled. One day it will come to the counter of a commercial bank, a savings bank or a post-office from where it is not issued again, but returned to the central bank. A bank note returning to the Netherlands Bank is sorted mechanically to see if it is fit or unfit for further circulation. A soiled bank note is destroyed and replaced by a new one. Hence, its life has ended. An approved note, however, is again brought into circulation and its life continues until its final return to the Bank. In 1980 the Netherlands Bank sorted 663 million notes, of which 232 million were rejected and replaced. This amounted to 93 per cent of the total issue of new bank notes in that year. It is evident that an insight into the processes of soiling and withdrawal is imperative to the Bank's operations. The average life of bank notes is one of the determinants of the future

The Membership Problem of the Federal Reserve: An Alternative Proposal

THE MEMBERSHIP PROBLEM of the Federal Reserve is a fascinating and complex one. According to the Federal Reserve Board, more than 550 banks have withdrawn from membership in the system during the past ten years. Until recently, the attrition came largely from small bank withdrawals, although a growing tendency for larger banks to leave the system is now manifest. Of the sixty-nine banks leaving the system in 1977, fifteen had deposits in excess of $100 million. Does this attrition of membership constitute an issue of genuine social importance or should it be dismissed as a rather uninteresting and parochial problem of the Federal Reserve? Since it is generally agreed that the Federal Reserve's primary function is money stock control, the relationship between membership attrition and possible erosion of monetary control is one subject which has received systematic investigation by economists outside the system. l In general, the empirical results suggest that Federal Reserve ability to control the money supply has not been significantly eroded by the presence of nonmember banks, but the interpretation of

SM-2 Flexible Critical Experiments

The cold, clean, steel-reflected, final, SM-2 mock-up containing 36.4 kg U235 and 61 g B10 maintained criticality after a seven rod bank withdrawal of 6.974 in. and has an “excess K” (ΔKE) of 1520 cents. An infinite steel-water laminated reflector is worth approximately +85 cents over the infinite water reflected core. The measured reactivity coefficient, @ 2000 psi, ranges from –1.15 cents/°F @ 150°F to –5.20 cents/°F @ 510°F. The integral reactivity effect of raising the SM-2 core water temperature from 103 to 510°F @ 2000 psi and the water in the reflector coolant graph from 103 to 477°F @ 2000 psi is –889.7 cents. The average measured material coefficients for U235 and B10 are 0.157 cents/g and 42.54 cents/g, respectively. Without the benefit of flux suppressors the maximum to average power ratio of 7.28 occurs at the top of the fuel section of control rod C (withdrawn to 7.14 in.), and a ratio of 5.28 occurs at the bottom of stationary element 43 and symmetric elements.