Article Abstract:
The relationship between bank regulation and the availability of bank loans is discussed. The contraction of bank loans is analyzed according to two likely causes: regulatory activities and voluntary action because of low capital-to-asset ratios. It is shown that the shrinkage is faster when it is brought about by the latter cause. Likewise, such shrinkage tended to occur more often in primary loans to customers exclusively dependent on the banking system for their financial needs.
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Article Abstract:
A Lancaster-type model is introduced to evaluate the possible effects of banking law changes on money demand. Bank laws have officially recognized checkable deposit accounts that provide specific rates of interest determinable by the market. Spendability limitations and paid rates of interest determine the rise or fall of money demand and interest elasticity. Results reveal that monetary market deregulation and its accompanying financial assets effectivity lessen monetary policy.
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Article Abstract:
A functional overview on the workings of change in financial institutions and its effects on the future are discussed. Such changes include the design of new security arrangements and advances made in the realm of telecommunications and computers. In view of such wide-ranging change, the role of risk management as practiced either through hedging or equity capital and risk accounting has increased in importance.
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