Because of limited liability, insolvent banks have an incentive to continue lending to insolvent borrowers, in order to hide losses and gamble for resurrection, even though this is socially inefficient. We suggest a scheme that regulators could use to solve this problem. The scheme would induce banks to reveal their bad loans, which can then be dealt with. Bank participation in the scheme would…
The recent financial crisis has shown that short-term collateralized borrowing may be a highly unstable source of funds in times of stress. In this paper, we develop a dynamic equilibrium model and analyze under what conditions such instability can be a consequence of market-wide changes in expectations. We derive a liquidity constraint and a collateral constraint that determine whether such ex…
Why do security analysts issue overly positive recommendations? We propose a novel approach to distinguish strategic motives (e.g., generating small-investor purchases and pleasing management) from nonstrategic motives (genuine overoptimism). We argue that nonstrategic distorters tend to issue both positive recommendations and optimistic forecasts, while strategic distorters "speak in two tongu…
Contrary to earlier studies, we find that prior client performance is a significant determinant of the likelihood that an investment bank will be chosen as the advisor by future acquirers and of the changes through time in banks' shares of the advisory business. Further, the changes in the market values of acquirers at the announcement of acquisition attempts are positively correlated with cont…
Includes bibliographies and index
This paper studies the quantitative impact of microprudential bank regulations on bank lending and value metrics of efficiency and welfare in a dynamic model of banks that are financed by debt and equity, undertake maturity transformation, are exposed to credit and liquidity risks, and face financing frictions. We show that: (a) there exists an inverted U?shaped relationship between bank lendin…
Credit default swaps (CDS) are derivative contracts that are widely used as tools for credit risk management. However, in recent years, concerns have been raised about whether CDS trading itself affects the credit risk of the reference entities. We use a unique, comprehensive sample covering CDS trading of 901 North American corporate issuers, between June 1997 and April 2009, to address this q…
This paper considers the optimal joint decision on firm organization and capital structure under a tax-bankruptcy trade-off, stressing the role of guarantees against default. Conditional guarantees, which are embedded in parent-subsidiary structures, increase joint value and joint debt relative to unguaranteed stand-alone firms. Such guarantees, that are unilateral rather than mutual for modera…
We propose a labor market model in which agents with heterogenous ability levels choose to work as bankers or as financial regulators. When workers extract intrinsic benefits from working in regulation (such as public-sector motivation or human capital accumulation), our model jointly predicts that bankers are, on average, more skilled than regulators and their compensation is more sensitive to…
Ada bibliografi, indek dan tabel
Includes bibliography & index
Includes tables
Laporan magang ini ditulis untuk membahas evaluasi terhadap prosedur audit teknologi informasi yang dilakukan oleh KAP XYZ terhadap salah satu fitur yang akan dirilis oleh PT BCD pada produk bank digital Bank Mobile, yaitu Onboarding Webview di aplikasi mitra Bank sebagai saluran promosi yang memungkinkan calon nasabah untuk membuka rekening Bank Mobile di dalam aplikasi mitra Bank tersebut. Se…
Penelitian ini membahas tentang hubungan governansi syariah dan tingkat risiko kredit di bank syariah. Unsur governansi yang digunakan adalah jumlah anggota dewan direksi dan dewan komisaris, proporsi komisaris independen, tingkat kepemilikan manajer, tingkat kepemilikan saham institusi, jumlah komite audit, jumlah dewan pengawas syariah, dan kompetensi dari anggota dewan pengawas syariah serta…
Includes bibliographies, tables
Includes bibliographies and index
Laporan magang ini mengevaluasi pelaksanaan kembali proses rekonsiliasi bank, sebagai bagian dari uji substantif untuk audit akhir tahun atas kas dan rekening bank oleh KAP CRT untuk PT SVT. Evaluasi menunjukkan bahwa KAP CRT telah bekerja dengan baik berdasarkan SA 315 (Keberadaan, Kelengkapan, dan Penilaian & Alokasi), memastikan bahwa saldo kas dalam laporan keuangan tercermin secara akurat,…
Transformasi digital mengubah cara kerja, peran, dan penawaran bisnis suatu perusahaan yang disebabkan oleh adopsi teknologi digital. Pengadopsian inovasi teknologi seperti Internet of Things, Cloud Computing, dan Machine Learning membawa perubahan yang signifikan, terutama di industri perbankan. Untuk menghadapi lanskap perbankan di masa depan karena adanya transformasi digital, penting bagi p…
Includes bibliographies and index
Includes bibliographical references and index