Liabilities Of Financial Institutions Research Articles

STATE PROTECTION OF THE RIGHTS OF PARTICIPANTS OF CREDIT RELATIONS IN UKRAINE AND OTHER COUNTRIES

The article deals with the peculiarities of the state regulation of credit relations in Ukraine and other countries of the world. Special attention is devoted to problems of protection of the rights of individuals-borrowers and the liability of financial institutions for violation of the terms of the loan agreements.
 The authors draw attention to the imperfection of the domestic state regulations in protecting the rights of consumers of financial services. On the basis of analysis of normative sources, concludes that in Ukraine the rights of borrowers is implemented using the General civil-law methods, such as payment of penalty and compensation for damages and contractual penalties. Provides that when the borrower relationship involved a natural person, are also considered statutory provisions of the legislation on protection of consumer rights. The majority of legal provisions contained in the same law and to establish penalties for the violation of consumer rights does not apply to the provision of financial services. It is concluded that in connection with the above, means of influence on the creditor in the contract there are only penalties provided for by the parties themselves.
 Due to the fact that today there is no possibility of application of the financial, administrative and criminal sanctions against credit institutions for violations of the rights of consumers of financial services, the authors made proposals on improving legislation in this sphere. In particular, it is proposed to determine the grounds and amount of payment of legal damages by a creditor for non-fulfillment of their obligations established by contract or by law; to develop the procedure and consequences of termination of the contract of consumer credit in connection with the failure of obligations of third parties (seller, executor). The necessity of regulatory consolidation of financial sanctions, administrative and criminal responsibility of managers of financial institutions for violation of credit services; the possibility of suspension, termination or revocation of appropriate licenses.

전자금융거래 사고와 금융기관의 책임

전자금융거래 사고와 금융기관의 책임

Accidents on Electronic Financial Transactions and the Liability of Financial Institutions

Accidents on Electronic Financial Transactions and the Liability of Financial Institutions

전자금융거래 사고와 금융기관의 책임

전자금융거래 사고와 금융기관의 책임

Systemic Risk and Cyclical Economic Environment

In this paper, the measurement of systemic risk of financial institutions and the determination of optimal capital level under consideration of systemic risk are discussed. The values of assets and liabilities of financial institutions are considered to be correlated with each other and they are described using Multi-Vasicek Model and are transferred into Gauss process with time series correlation. The formulas of calculating time series correlation coefficient are deducted and four advantages of it contrasting to Achayra et al. (2012) are discussed. Default put option pricing model based on Mult-Vasicek Model is first presented to evaluate the expected loss of financial crisis. Four different objective functions are established. They are (1) minimizing the sum of weighted averages of capital cost and expected total loss of financial crisis; (2) minimizing weighted systemically risk value; (3) minimizing weighted systemically expected shortfall and (4) systemically aggregated expected shortfall is at (1-a) confidential level. Optimal solutions can be obtained by solving objective functions. Finally, An application and numerical analysis are carried out by using historical data from the main financial institutions of U.S. and Canada.

Systemic Risk and Cyclical Economic Environment

In this paper, the measurement of systemic risk of financial institutions and the determination of optimal capital level under consideration of systemic risk are discussed. The values of assets and liabilities of financial institutions are considered to be correlated with each other and they are described using Multi-Vasicek Model and are transferred into Gauss process with time varying correlation. The formulas of calculating time varying correlation coefficient are deducted and three advantages of it contrasting to Achayra et al. (2012) are discussed. Default put option pricing model based on Mult-Vasicek Model is first presented to evaluate the expected loss of financial crisis. Four different objective functions are established. They are (1) minimizing the sum of weighted averages of capital cost and expected total loss of financial crisis; (2) minimizing weighted systemically risk value; (3) minimizing weighted systemically expected shortfall and (4) systemically aggregated expected shortfall is at (1- ) confidential level. Optimal solutions can be obtained by solving objective functions. Finally, An application and numerical analysis are carried out by using historical data from the main financial institutions of U.S. and Canada.

European Financial Regulation: How to Make It More Workable

Everyone working in the field of financial regulation – but in other fields as well - is struck by the great number of documents that are being proposed or adopted in this field by the international institutions (FSB, BCBS, BIS, OECD, etc.), but even in greater quantity, by the European institutions. The present paper is aimed at exposing this problem and its increasing complexity, leading to a risk of destabilising the financial regulatory system, creating overlaps and gaps, and possibly engaging the liability of financial institutions. But the problem can be solved. The first and most practical solution consists of organising an integrated website where all texts of whatever nature are posted in a coordinated way, integrating the respective changes and the implementing documents, including level 3, q&a’s, recommendations and other authoritative statements. As in many fields, national legislation remains applicable, it should be included. An initiative from the European institutions would be most welcome.

The Federal Reserve-Wall Street complex

We construct generic balance sheets for the USA and a developing country. The stock-flow-consistent (SFC) framework is drawn from the Godley and Lavoie (2007) compendium. The stylised US matrix is completely financialised. The liabilities of financial institutions (FIs) are equity and their assets are the equity offerings of firms and households. Households are rentiers holding the equity of both the entities. The government oversees the operation of SFC norms. The input-output system of the developing economy is a contrast. Banks 'originate and hold' credit lines which are utilised to employ workers on projects. The private money created thereby is underwritten by state money. We consider the imperialism of the US balance sheet accounting practices on the developing country balance sheet. In particular, what are the implications for stability when 'originate and hold' transforms into 'originate and distribute' financial relationships?

Selective Appraisal of the Liability of Financial Institutions with Use of E - Banking and Payment Systems

This paper seeks to examine the impact of Information and Communication Technology (ICT) on the provision of financial payment services in Nigeria. We have carried out a selective appraisal of the liability of financial institutions as well as payment system providers that have deployed ICT tools in the delivery of their services in relation to cases of forgery, fraud, mistake and system failure; while assuming at all times that the customer or client is faultless, The paper examines the selected issues within the precincts of the extant legal regime in Nigeria with a view to ascertaining if they suffice for the regulation of the relationship between customers and financial institution. DOI: 10.5901/mjss.2015.v6n3p515

The Liability of Financial Institutions under the Article 9 of the Electronic Financial Transaction Act

The Liability of Financial Institutions under the Article 9 of the Electronic Financial Transaction Act

Market Consistent Valuation of Life Assurance Business

ABSTRACTIn recent years there has been a trend towards market consistent valuation in those institutions for which actuaries have responsibilities. The larger United Kingdom with-profits insurance companies are now preparing realistic balance sheets, both for internal purposes and also at the request of the Financial Services Authority. International accounting standards have been moving to a fair value approach. Pension fund accounting under FRS 17 has also moved in this direction.In this paper we examine the reasons for the adoption of market consistent valuation and discuss some of the commercial implications and corporate valuation. We consider the methods and assumptions which can be used to develop market consistent valuations of cash flows typically encountered in the liabilities of financial institutions, together with some of the problems inherent in the calibration of models used for the valuation of these cash flows. The volatility assumption is crucial to the valuation of options and guarantees, and we discuss the relationship between historical and implied volatility.While most insurance companies initially adopted formulae to value their with-profits guarantees, several offices are now using a Monte Carlo simulation approach for their realistic balance sheets. The Monte Carlo approach enables allowance to be made for management discretion in bonus and investment policy, as well as policyholder actions. However, in many cases it is possible to develop analytical formulae for cash flows approximating those payable under insurance contracts.The valuation formulae have implications for the hedging of embedded guarantees. The authors discuss the construction of hedges for financial risks in with-profits funds, the separate perspectives of policyholders and shareholders, possible funds in which to hold hedging instruments, limitations of capital market hedging tools and the effect of taxation on hedge effectiveness.

The liabilities of financial institutions

The purpose of this paper is to consider the different heads of liability which may attach to banks and other financial institutions if they become mixed up in frauds committed by their customers or by third parties with whom they have no contractual relationship. This paper is adapted from a paper given at the Commercial Bar Association Conference in the Cayman Islands in April 2000.

The liabilities of financial institutions for the fraud of third parties: The Jersey, Channel Islands experience

Jersey is recognised as being an independent and well-regulated finance centre providing tax benefits and investment opportunities. In order to protect its reputation, laws and procedures are constantly being developed. The liabilities of financial institutions for the fraud of third parties is one such development.

BANK COMPETITIVENESS IN THE FACE OF INTEREST RATE RISK

The values of assets and liabilities of financial institutions are subject to fluctuations in interest rate. The differential impact in interest rate changes between assets and liabilities is referred to, in banking, as interest rate risk. Of all threats to bank competitiveness this risk dwarfs all others. Banks traditionally have dealt with interest rate risk by restructuring their loan portfolios. In this paper, we construct a model to measure interest rate risk, called the Degree of Interest Rate Sensitivity (DIRS), and demonstrate its effectiveness for banks to compete. The degree of interest rate risk is of vital importance to the commercial bank which has to know its level and degree of interest‐rate risk in order to prudently manage it. Failure to adequately manage interest rate risk can lead to bankruptcy or, at the least, a lack of competitiveness.

Money and finance in the economic development of Taiwan

Part 1: historical review of the banking system domestic and foreign banks investment and trust companies credit cooperatives credit departments of farmers associations and fishery associations insurance companies offshore banking systems informal money markets assets and liabilities of financial institutions and the composition of lending deposits of various financial institutions and their growth rates loans of various financial institutions and their growth rates aggregate assets of various financial institutions and their growth rates domestic banks medium and small business banks foreign banks composition of lending investment and trust companies. Part 2: monetary system historical background of currency issue currency issue of new Taiwan dollars reserve requirement of deposit money banks money, income and prices demand for money in Taiwan determinants of money supply the monetary identity as applied to Taiwan money multiplier income velocities of circulation savings and investment ratios and the financial system monetary policy objectives and instruments of monetary policy exchange rate policy exchange rate, international reserves and money supply appreciation of exchange rate and price change major issues of monetary policy. Part 3: Development of the financial and real sectors financial development and economic growth land reform and industrialization import-substitution and export orientated strategy manufacturing and export growth liberalization and reform of the financial system liberalization of interest rate and foreign exchange order and speed of liberalization a consideration of the reform of financial institutions banks investment and trust companies credit cooperatives insurance companies a consideration of strengthening the capital market.