Juliet Johnson
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9781501700224
- eISBN:
- 9781501703751
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501700224.003.0004
- Subject:
- Political Science, Political Economy
This chapter describes the coordination and evolution of the transnational central banking community's training and technical assistance programs and explores the transformation campaign's overall ...
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This chapter describes the coordination and evolution of the transnational central banking community's training and technical assistance programs and explores the transformation campaign's overall effects in postcommunist states. While the transnational central banking community encouraged postcommunist governments to adopt legislation granting independence to their central banks, it came into its own with the campaign to transform the beliefs and practices of postcommunist central bankers. Driven by a desire to preserve international financial stability and to draw new members into the community, established central bankers individually and collectively deployed their extensive organizational, human, and material resources to develop training and technical assistance programs for the postcommunist central banks. Postcommunist central bankers welcomed this assistance because of the community's international status and model, the challenge of managing the complex postcommunist economic environment, and the social and material incentives for joining the community.Less
This chapter describes the coordination and evolution of the transnational central banking community's training and technical assistance programs and explores the transformation campaign's overall effects in postcommunist states. While the transnational central banking community encouraged postcommunist governments to adopt legislation granting independence to their central banks, it came into its own with the campaign to transform the beliefs and practices of postcommunist central bankers. Driven by a desire to preserve international financial stability and to draw new members into the community, established central bankers individually and collectively deployed their extensive organizational, human, and material resources to develop training and technical assistance programs for the postcommunist central banks. Postcommunist central bankers welcomed this assistance because of the community's international status and model, the challenge of managing the complex postcommunist economic environment, and the social and material incentives for joining the community.
Rebecca K. Marchiel
- Published in print:
- 2020
- Published Online:
- May 2021
- ISBN:
- 9780226723648
- eISBN:
- 9780226723785
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226723785.003.0007
- Subject:
- History, American History: 20th Century
This final chapter follows the movement through the 1980s, as the savings and loan industry collapsed and as National People’s Action directed much of its energy toward using the CRA to win ...
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This final chapter follows the movement through the 1980s, as the savings and loan industry collapsed and as National People’s Action directed much of its energy toward using the CRA to win community-bank partnerships. The Reagan administration and Congress resolved a two-decades long debate over financial reform by choosing to reregulate banks, liberalizing the savings and loan industry to promote competition rather than bolstering the social mission codified by New Deal-era banking reforms. Reinvestment activists called for credit allocation, or state-mandated lending, but ultimately lost the battle to reform the financial sector by strengthening bank ties to local communities. Local savings and loans lost ground to bigger banks that orchestrated the movement of capital through national and international credit markets. Despite this smashing defeat, reinvestment activists used the HMDA and the CRA to secure small pools of credit that served as the lifeblood for an emerging community development banking sector.Less
This final chapter follows the movement through the 1980s, as the savings and loan industry collapsed and as National People’s Action directed much of its energy toward using the CRA to win community-bank partnerships. The Reagan administration and Congress resolved a two-decades long debate over financial reform by choosing to reregulate banks, liberalizing the savings and loan industry to promote competition rather than bolstering the social mission codified by New Deal-era banking reforms. Reinvestment activists called for credit allocation, or state-mandated lending, but ultimately lost the battle to reform the financial sector by strengthening bank ties to local communities. Local savings and loans lost ground to bigger banks that orchestrated the movement of capital through national and international credit markets. Despite this smashing defeat, reinvestment activists used the HMDA and the CRA to secure small pools of credit that served as the lifeblood for an emerging community development banking sector.
Juliet Johnson
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9781501700224
- eISBN:
- 9781501703751
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501700224.003.0006
- Subject:
- Political Science, Political Economy
This chapter explores the intensive transformation of the Bank of Russia and the National Bank of the Kyrgyz Republic (NBKR). As the central bank of the largest, the wealthiest, and the most ...
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This chapter explores the intensive transformation of the Bank of Russia and the National Bank of the Kyrgyz Republic (NBKR). As the central bank of the largest, the wealthiest, and the most geopolitically important Soviet successor state, the Bank of Russia received a disproportionate share of international attention and assistance. Although the Bank of Russia itself gradually transformed along Western lines, the slow pace of complementary institution building, advising mistakes in the 1990s, and an increasingly authoritarian government made its work difficult and often counterproductive. As the central bank of a small, resource-poor state in Central Asia, the NBKR presented a fundamental challenge to the transnational central banking community. With early and consistent community access but unstable domestic conditions and few internal resources, the NBKR's experience demonstrated both the possibilities and the limits of internationally driven institutional transplantation.Less
This chapter explores the intensive transformation of the Bank of Russia and the National Bank of the Kyrgyz Republic (NBKR). As the central bank of the largest, the wealthiest, and the most geopolitically important Soviet successor state, the Bank of Russia received a disproportionate share of international attention and assistance. Although the Bank of Russia itself gradually transformed along Western lines, the slow pace of complementary institution building, advising mistakes in the 1990s, and an increasingly authoritarian government made its work difficult and often counterproductive. As the central bank of a small, resource-poor state in Central Asia, the NBKR presented a fundamental challenge to the transnational central banking community. With early and consistent community access but unstable domestic conditions and few internal resources, the NBKR's experience demonstrated both the possibilities and the limits of internationally driven institutional transplantation.
Rebecca K. Marchiel
- Published in print:
- 2020
- Published Online:
- May 2021
- ISBN:
- 9780226723648
- eISBN:
- 9780226723785
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226723785.001.0001
- Subject:
- History, American History: 20th Century
After Redlining explains the changed relationship between urbanites and their banks during the last third of the twentieth century, and argues that an urban social movement drove the change. In so ...
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After Redlining explains the changed relationship between urbanites and their banks during the last third of the twentieth century, and argues that an urban social movement drove the change. In so doing, it explores how the U.S. financial system shaped and was shaped by the community organizing of ordinary urbanites from 1966 to 1989. The book charts the activism of the urban reinvestment movement whose members blamed anti-urban, bank-friendly policies for the decline of American cities—not riots, white flight, or deindustrialization as current scholarship and popular memory suggested. Drawing on the unprocessed archive of the reinvestment movement’s lead organization, National People’s Action, as well as Congressional hearings and banking trade publications, the book spotlights the impact of this multiracial coalition of low-and moderate-income city residents on urban redevelopment and American politics. The movement’s crowning legislative achievements—the Home Mortgage Disclosure Act of 1975 and the Community Reinvestment Act of 1977—created a unique role for community organizations as grassroots financial regulators who policed urban redlining at the street level. Yet the 1970s economic downturn narrowed the scope of urban reinvestment in practice. Policymakers rejected ambitious urban initiatives out of fear that increased spending would worsen the era’s persistent inflation, making bank-financed reinvestment all the more important. At the same time, financial deregulation—wherein policymakers gave banks untested privileges to lend and manage wealth in new ways—shifted the ground beneath activists’ feet. By decade’s end, “reinvestment” referred largely to something that banks did, and banks had changed dramatically.Less
After Redlining explains the changed relationship between urbanites and their banks during the last third of the twentieth century, and argues that an urban social movement drove the change. In so doing, it explores how the U.S. financial system shaped and was shaped by the community organizing of ordinary urbanites from 1966 to 1989. The book charts the activism of the urban reinvestment movement whose members blamed anti-urban, bank-friendly policies for the decline of American cities—not riots, white flight, or deindustrialization as current scholarship and popular memory suggested. Drawing on the unprocessed archive of the reinvestment movement’s lead organization, National People’s Action, as well as Congressional hearings and banking trade publications, the book spotlights the impact of this multiracial coalition of low-and moderate-income city residents on urban redevelopment and American politics. The movement’s crowning legislative achievements—the Home Mortgage Disclosure Act of 1975 and the Community Reinvestment Act of 1977—created a unique role for community organizations as grassroots financial regulators who policed urban redlining at the street level. Yet the 1970s economic downturn narrowed the scope of urban reinvestment in practice. Policymakers rejected ambitious urban initiatives out of fear that increased spending would worsen the era’s persistent inflation, making bank-financed reinvestment all the more important. At the same time, financial deregulation—wherein policymakers gave banks untested privileges to lend and manage wealth in new ways—shifted the ground beneath activists’ feet. By decade’s end, “reinvestment” referred largely to something that banks did, and banks had changed dramatically.
Juliet Johnson
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9781501700224
- eISBN:
- 9781501703751
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501700224.001.0001
- Subject:
- Political Science, Political Economy
This book explores the unsung revolutionary campaign to transform postcommunist central banks from command-economy cash cows into Western-style monetary guardians. The book argues that a powerful ...
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This book explores the unsung revolutionary campaign to transform postcommunist central banks from command-economy cash cows into Western-style monetary guardians. The book argues that a powerful transnational central banking community concentrated in Western Europe and North America integrated postcommunist central bankers into its network, shaped their ideas about the role of central banks, and helped them develop modern tools of central banking. The detailed comparative studies of central bank development in Hungary, the Czech Republic, Slovakia, Russia, and Kyrgyzstan span from the birth of the campaign in the late 1980s to the challenges faced by central bankers after the global financial crisis. As the comfortable certainties of the past collapse around them, today's central bankers in the postcommunist world and beyond find themselves torn between allegiance to their transnational community and its principles on the one hand and their increasingly complex and politicized national roles on the other.Less
This book explores the unsung revolutionary campaign to transform postcommunist central banks from command-economy cash cows into Western-style monetary guardians. The book argues that a powerful transnational central banking community concentrated in Western Europe and North America integrated postcommunist central bankers into its network, shaped their ideas about the role of central banks, and helped them develop modern tools of central banking. The detailed comparative studies of central bank development in Hungary, the Czech Republic, Slovakia, Russia, and Kyrgyzstan span from the birth of the campaign in the late 1980s to the challenges faced by central bankers after the global financial crisis. As the comfortable certainties of the past collapse around them, today's central bankers in the postcommunist world and beyond find themselves torn between allegiance to their transnational community and its principles on the one hand and their increasingly complex and politicized national roles on the other.
Genauto Carvalho de França Filho, Ariádne Scalfoni Rigo, and Jeová Torres Silva Júnior
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199687015
- eISBN:
- 9780191766916
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199687015.003.0007
- Subject:
- Economics and Finance, Microeconomics, Development, Growth, and Environmental
This chapter examines the role of community development banks in the field of solidarity finance in Brazil, focusing on the unique nature of their practices in the context of the government’s ...
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This chapter examines the role of community development banks in the field of solidarity finance in Brazil, focusing on the unique nature of their practices in the context of the government’s microcredit policy. It explores whether that policy adequately responds to the problem of access to credit faced by the informal economy. Based on a general diagnosis, the chapter assesses the potential and limitations of conventional microcredit practices and proposes a new agenda for addressing the issue of microcredit in Brazil.Less
This chapter examines the role of community development banks in the field of solidarity finance in Brazil, focusing on the unique nature of their practices in the context of the government’s microcredit policy. It explores whether that policy adequately responds to the problem of access to credit faced by the informal economy. Based on a general diagnosis, the chapter assesses the potential and limitations of conventional microcredit practices and proposes a new agenda for addressing the issue of microcredit in Brazil.
Travis J. Lybbert and Bruce Wydick
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780226574301
- eISBN:
- 9780226574448
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226574448.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The majority of the research on poverty traps has concentrated on dynamics arising from external constraints such as missing credit, labor, and land markets or structural features such as locally ...
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The majority of the research on poverty traps has concentrated on dynamics arising from external constraints such as missing credit, labor, and land markets or structural features such as locally increasing returns to scale in production. Recent work in behavioral economics, however, has illuminated the potential for development traps based on internal psychological phenomena. In this research, we address the subject of hope, which may form a key component to breaking cycles of poverty. Work in positive psychology by Snyder (1994) decomposes hope into aspirations, agency, and pathways. Operating in the context of an economic model developed with this framework, we review the literature on hope from psychology, philosophy, and theology, and its relationship to emerging work on aspirations in development economics. We then present one-month follow-up results from an experimental study based on a hope intervention in Oaxaca, Mexico among 601 indigenous women with access to microfinance loans. Our early experimental results suggest that the intervention raised aspirations approximately a quarter of a standard deviation, significantly raised a hope index among the treated subjects, and had positive but statistically insignificant results on enterprise revenues and profits.Less
The majority of the research on poverty traps has concentrated on dynamics arising from external constraints such as missing credit, labor, and land markets or structural features such as locally increasing returns to scale in production. Recent work in behavioral economics, however, has illuminated the potential for development traps based on internal psychological phenomena. In this research, we address the subject of hope, which may form a key component to breaking cycles of poverty. Work in positive psychology by Snyder (1994) decomposes hope into aspirations, agency, and pathways. Operating in the context of an economic model developed with this framework, we review the literature on hope from psychology, philosophy, and theology, and its relationship to emerging work on aspirations in development economics. We then present one-month follow-up results from an experimental study based on a hope intervention in Oaxaca, Mexico among 601 indigenous women with access to microfinance loans. Our early experimental results suggest that the intervention raised aspirations approximately a quarter of a standard deviation, significantly raised a hope index among the treated subjects, and had positive but statistically insignificant results on enterprise revenues and profits.
- Published in print:
- 2000
- Published Online:
- June 2013
- ISBN:
- 9780853236061
- eISBN:
- 9781846314261
- Item type:
- chapter
- Publisher:
- Liverpool University Press
- DOI:
- 10.5949/liverpool/9780853236061.003.0007
- Subject:
- History, Economic History
This chapter addresses questions of risk, reputation, and information, specifically investigating the backdrop of key issues cited by contemporaries in their complaints about the uncertainties of the ...
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This chapter addresses questions of risk, reputation, and information, specifically investigating the backdrop of key issues cited by contemporaries in their complaints about the uncertainties of the traders' lot. It also addresses the complex networks of information that surrounded the credit-worthiness of firms, and the problems faced by traders in securing sufficiently accurate information on which to base decisions. The strategies adopted to persuade a wider audience of the respectability of the new joint-stock firms are then explained. Information, reputation, co-operation, and careful image-making were important to Liverpool traders. Firms had to maintain good relations with major traders, and especially with the banking community, due to the complex circuit of information, rumour, and gossip that characterised the interplay of the trading community. It is noted that ideas of corporate image and reputation produced for the new joint-stock companies presented a process of evolution in Liverpool's business culture.Less
This chapter addresses questions of risk, reputation, and information, specifically investigating the backdrop of key issues cited by contemporaries in their complaints about the uncertainties of the traders' lot. It also addresses the complex networks of information that surrounded the credit-worthiness of firms, and the problems faced by traders in securing sufficiently accurate information on which to base decisions. The strategies adopted to persuade a wider audience of the respectability of the new joint-stock firms are then explained. Information, reputation, co-operation, and careful image-making were important to Liverpool traders. Firms had to maintain good relations with major traders, and especially with the banking community, due to the complex circuit of information, rumour, and gossip that characterised the interplay of the trading community. It is noted that ideas of corporate image and reputation produced for the new joint-stock companies presented a process of evolution in Liverpool's business culture.
Julia C. Morse
- Published in print:
- 2022
- Published Online:
- May 2022
- ISBN:
- 9781501761515
- eISBN:
- 9781501761522
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501761515.003.0001
- Subject:
- Political Science, Political Economy
This introductory chapter provides an overview of the link between cross-border banking and domestic policy. Every country in the world relies on bank-to-bank networks for some type of commerce, and ...
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This introductory chapter provides an overview of the link between cross-border banking and domestic policy. Every country in the world relies on bank-to-bank networks for some type of commerce, and it is this near-universal dependence that makes it a uniquely powerful tool of pressure. Countries may be able to forgo foreign investment or sell bonds to domestic markets, but governments cannot afford to be cut off from the global banking community. For this reason, bank networks and operating practices can have profound effects on the domestic policies of states. The chapter describes the Financial Action Task Force's (FATF) noncomplier list, which showcases the power of globalized finance. By avoiding sanctions or direct coercive action, the FATF's noncomplier list preserves a veneer of bureaucratic authority and technocratic monitoring that protects it from easy critiques. The book continues furrther to examine the effects and implications of this unofficial market enforcement process.Less
This introductory chapter provides an overview of the link between cross-border banking and domestic policy. Every country in the world relies on bank-to-bank networks for some type of commerce, and it is this near-universal dependence that makes it a uniquely powerful tool of pressure. Countries may be able to forgo foreign investment or sell bonds to domestic markets, but governments cannot afford to be cut off from the global banking community. For this reason, bank networks and operating practices can have profound effects on the domestic policies of states. The chapter describes the Financial Action Task Force's (FATF) noncomplier list, which showcases the power of globalized finance. By avoiding sanctions or direct coercive action, the FATF's noncomplier list preserves a veneer of bureaucratic authority and technocratic monitoring that protects it from easy critiques. The book continues furrther to examine the effects and implications of this unofficial market enforcement process.
Paul I. Singer and Heloisa H. Primavera
- Published in print:
- 2017
- Published Online:
- January 2018
- ISBN:
- 9781447327226
- eISBN:
- 9781447327240
- Item type:
- chapter
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781447327226.003.0011
- Subject:
- Political Science, Public Policy
Rethinking the economy is at the core of transformations that intersect with every social activity: livelihoods, energy production, healthy food, protection of the environment - and of course, ...
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Rethinking the economy is at the core of transformations that intersect with every social activity: livelihoods, energy production, healthy food, protection of the environment - and of course, education. All over the world new models of development are trying to cope with the challenge of confronting financial capitalism, and in this context the Solidarity Economy has developed in Latin America. This chapter discusses how different innovations are transferred to other countries and contexts, such as the case of how social currencies from civil society in Argentina that have inspired new public policy in Brazil. It shows how governments can support and/or retard good ideas developing within civil society organisations being transmitted from their origins and finding new homes, on the way being adjusted to new conditions.Less
Rethinking the economy is at the core of transformations that intersect with every social activity: livelihoods, energy production, healthy food, protection of the environment - and of course, education. All over the world new models of development are trying to cope with the challenge of confronting financial capitalism, and in this context the Solidarity Economy has developed in Latin America. This chapter discusses how different innovations are transferred to other countries and contexts, such as the case of how social currencies from civil society in Argentina that have inspired new public policy in Brazil. It shows how governments can support and/or retard good ideas developing within civil society organisations being transmitted from their origins and finding new homes, on the way being adjusted to new conditions.
Kathleen C. Engel and Patricia A. McCoy
- Published in print:
- 2011
- Published Online:
- April 2015
- ISBN:
- 9780195388824
- eISBN:
- 9780190258535
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780195388824.003.0009
- Subject:
- Business and Management, Political Economy
This chapter discusses oversight by the Office of the Comptroller of the Currency (OCC), Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC). In addition to ...
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This chapter discusses oversight by the Office of the Comptroller of the Currency (OCC), Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC). In addition to instituting federal preemption and refusing to adopt binding rules that would have mandated safe underwriting practices, the OCC and OTS also failed to take formal enforcement actions against troubled banks and thrifts. The FDIC, however, did not preempt state anti-predatory lending laws for the community banks it regulated. While a few FDIC-regulated banks got into trouble with subprime loans, for the most part FDIC institutions steered clear of those products. Thus, FDIC-regulated banks only had a small role in the unfolding subprime crisis.Less
This chapter discusses oversight by the Office of the Comptroller of the Currency (OCC), Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC). In addition to instituting federal preemption and refusing to adopt binding rules that would have mandated safe underwriting practices, the OCC and OTS also failed to take formal enforcement actions against troubled banks and thrifts. The FDIC, however, did not preempt state anti-predatory lending laws for the community banks it regulated. While a few FDIC-regulated banks got into trouble with subprime loans, for the most part FDIC institutions steered clear of those products. Thus, FDIC-regulated banks only had a small role in the unfolding subprime crisis.
