Mark Casson
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199213979
- eISBN:
- 9780191707469
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199213979.003.0001
- Subject:
- Business and Management, Business History, Organization Studies
This chapter discusses controversies over the performance of the British railway system. It introduces a new source of evidence: the deposited plans of railway companies. This source is used to ...
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This chapter discusses controversies over the performance of the British railway system. It introduces a new source of evidence: the deposited plans of railway companies. This source is used to construct a detailed counterfactual alternative to the actual network. The British railway network reached its peak about 1914, and so this is the date at which the networks are compared. The results of the comparison are summarized. The principal discrepancies between the actual and counterfactual networks are then explained in terms of regulatory failure.Less
This chapter discusses controversies over the performance of the British railway system. It introduces a new source of evidence: the deposited plans of railway companies. This source is used to construct a detailed counterfactual alternative to the actual network. The British railway network reached its peak about 1914, and so this is the date at which the networks are compared. The results of the comparison are summarized. The principal discrepancies between the actual and counterfactual networks are then explained in terms of regulatory failure.
Richard Swinburne
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199212460
- eISBN:
- 9780191707193
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199212460.003.0009
- Subject:
- Philosophy, Philosophy of Religion
For there to be a meaningful relationship between the early Church and the present day Church, there needs to be a sense of connectedness and continuity of organization, and connectedness and ...
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For there to be a meaningful relationship between the early Church and the present day Church, there needs to be a sense of connectedness and continuity of organization, and connectedness and continuity of aim. The early Church was formed around the twelve apostles and its aims centrally included proclamation of the teachings of Jesus. So to claim a direct connection with this Church, the modern day Church has to maintain an organization similar to and continuous with that of the apostolic church, and must concentrate on teaching the implications of the original revelation. Defining these implications involves more than deducing doctrine from the ‘deposit of faith’, the core of which is the Bible; interpretation of that deposit in the light of the Church's prior teaching is also necessary.Less
For there to be a meaningful relationship between the early Church and the present day Church, there needs to be a sense of connectedness and continuity of organization, and connectedness and continuity of aim. The early Church was formed around the twelve apostles and its aims centrally included proclamation of the teachings of Jesus. So to claim a direct connection with this Church, the modern day Church has to maintain an organization similar to and continuous with that of the apostolic church, and must concentrate on teaching the implications of the original revelation. Defining these implications involves more than deducing doctrine from the ‘deposit of faith’, the core of which is the Bible; interpretation of that deposit in the light of the Church's prior teaching is also necessary.
Roger W. Shuy
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780195328837
- eISBN:
- 9780199870165
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195328837.003.0008
- Subject:
- Linguistics, Sociolinguistics / Anthropological Linguistics
The case of a bank's advertisements about the rate of return for its certificates of deposit centered on the use of the lexical items in the bank's advertisements and other materials, specifically ...
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The case of a bank's advertisements about the rate of return for its certificates of deposit centered on the use of the lexical items in the bank's advertisements and other materials, specifically “interest,” “simple interest,” and “compound interest.” A plaintiff bought CDs in 1983, before the Federal Deposit Insurance Corporation began to require banks to specify the difference between simple and compound interest in their advertisements. Principles of lexical semantics and marking were used to indicate the taxonomic hierarchy of relationships between interest (the unmarked highest node), simple interest, and compound interest (the marked lower nodes), because the latter two can be differentiated from each other and are more morphologically complex while maintaining their relationship with the higher node. Principles of language change also were relevant to this case. Historical records of the use of these terms supported the defense that when the plaintiff purchased the CDs, there was no usage or legal reason for the bank to have indicated what type of interest would be paid. Because “simple interest” was the unmarked form at the time of purchase, synonymous with “interest,” the bank did not engage in deceptive trade practice.Less
The case of a bank's advertisements about the rate of return for its certificates of deposit centered on the use of the lexical items in the bank's advertisements and other materials, specifically “interest,” “simple interest,” and “compound interest.” A plaintiff bought CDs in 1983, before the Federal Deposit Insurance Corporation began to require banks to specify the difference between simple and compound interest in their advertisements. Principles of lexical semantics and marking were used to indicate the taxonomic hierarchy of relationships between interest (the unmarked highest node), simple interest, and compound interest (the marked lower nodes), because the latter two can be differentiated from each other and are more morphologically complex while maintaining their relationship with the higher node. Principles of language change also were relevant to this case. Historical records of the use of these terms supported the defense that when the plaintiff purchased the CDs, there was no usage or legal reason for the bank to have indicated what type of interest would be paid. Because “simple interest” was the unmarked form at the time of purchase, synonymous with “interest,” the bank did not engage in deceptive trade practice.
Wayne L. Hamilton
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780195148213
- eISBN:
- 9780199790449
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195148213.003.0012
- Subject:
- Biology, Ecology
Reanalysis of previously published data on trends in sedimentation rates over time in eight small lakes in the northern range shows variations associated with elevation and character of lake basin ...
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Reanalysis of previously published data on trends in sedimentation rates over time in eight small lakes in the northern range shows variations associated with elevation and character of lake basin (kettle lakes or lakes in slide-deposit terrain) that must be taken into account in evaluating whether sedimentation rates have changed over time in response to increases in the elk herd. Total sedimentation rates and those of allogenic silica increased in most lakes between park establishment and the 1980s-1990s. Total organic sedimentation rates, and those of biogenic silica and phosphorus, increased during park history indicating eutrophication. Two species of diatoms characteristic of eutrophic conditions increased during park history in three of five lakes. Although more comprehensive research is needed on this question, an increase in the northern herd is the most probable hypothesis to explain the evidence from this preliminary study.Less
Reanalysis of previously published data on trends in sedimentation rates over time in eight small lakes in the northern range shows variations associated with elevation and character of lake basin (kettle lakes or lakes in slide-deposit terrain) that must be taken into account in evaluating whether sedimentation rates have changed over time in response to increases in the elk herd. Total sedimentation rates and those of allogenic silica increased in most lakes between park establishment and the 1980s-1990s. Total organic sedimentation rates, and those of biogenic silica and phosphorus, increased during park history indicating eutrophication. Two species of diatoms characteristic of eutrophic conditions increased during park history in three of five lakes. Although more comprehensive research is needed on this question, an increase in the northern herd is the most probable hypothesis to explain the evidence from this preliminary study.
Sean D. Ehrlich
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199737536
- eISBN:
- 9780199918645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199737536.003.0005
- Subject:
- Political Science, American Politics
Every country regulates its banking sector in order to prevent a run on one bank from spreading throughout the banking system and creating a financial crisis. However, countries have many options ...
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Every country regulates its banking sector in order to prevent a run on one bank from spreading throughout the banking system and creating a financial crisis. However, countries have many options when creating these prudential regulations, including regulations that banks support, such as maintaining a minimum level of capital as enshrined in the internationally negotiated Basel Accords, or ones that are less friendly to banks, such as restricting banks’ investment opportunities or creating regulators with strong supervisory powers. Access Point Theory argues that countries with many access points should have bank-friendly rules, since banks will have a lobbying advantage over consumers, while countries with fewer access points should have more consumer-friendly rules. The chapter tests this hypothesis by examining capital adequacy standards, deposit insurance systems, investment activity restrictions, and supervisory powers in banking systems in democracies around the world.Less
Every country regulates its banking sector in order to prevent a run on one bank from spreading throughout the banking system and creating a financial crisis. However, countries have many options when creating these prudential regulations, including regulations that banks support, such as maintaining a minimum level of capital as enshrined in the internationally negotiated Basel Accords, or ones that are less friendly to banks, such as restricting banks’ investment opportunities or creating regulators with strong supervisory powers. Access Point Theory argues that countries with many access points should have bank-friendly rules, since banks will have a lobbying advantage over consumers, while countries with fewer access points should have more consumer-friendly rules. The chapter tests this hypothesis by examining capital adequacy standards, deposit insurance systems, investment activity restrictions, and supervisory powers in banking systems in democracies around the world.
David P. Wright
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195304756
- eISBN:
- 9780199866830
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195304756.003.0009
- Subject:
- Religion, Biblical Studies
This chapter explains the compositional logic lying being the series of laws on animal theft, burglary, crop destruction, and deposit in Exodus 21:37–22:8. Here the Covenant Code has used the ...
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This chapter explains the compositional logic lying being the series of laws on animal theft, burglary, crop destruction, and deposit in Exodus 21:37–22:8. Here the Covenant Code has used the technique of cross-referencing to laws in other places of Hammurabi's text or to other sources. The chapter explains that the law about the resolution of legal claims in 22:8 is a general law, comparable to the talion law in 21:23–25, also a general law. These laws are summaries that allow abridgment of the source as well as set down principles that operate in their respective sections of legislation. The chapter also explains that the out-of-place burglary law in 22:1–2a was conceptually created with the deposit law of 22:6–8 and only secondarily received its present position.Less
This chapter explains the compositional logic lying being the series of laws on animal theft, burglary, crop destruction, and deposit in Exodus 21:37–22:8. Here the Covenant Code has used the technique of cross-referencing to laws in other places of Hammurabi's text or to other sources. The chapter explains that the law about the resolution of legal claims in 22:8 is a general law, comparable to the talion law in 21:23–25, also a general law. These laws are summaries that allow abridgment of the source as well as set down principles that operate in their respective sections of legislation. The chapter also explains that the out-of-place burglary law in 22:1–2a was conceptually created with the deposit law of 22:6–8 and only secondarily received its present position.
Stephen H. Axilrod
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780199934485
- eISBN:
- 9780199345786
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199934485.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The Federal Reserve System—the central bank of the United States, better known as the Fed—has never been more controversial. Criticism has reached such levels that Congressman Ron Paul, contender for ...
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The Federal Reserve System—the central bank of the United States, better known as the Fed—has never been more controversial. Criticism has reached such levels that Congressman Ron Paul, contender for the Republican presidential nomination in 2012, published End the Fed, with blurbs from musician Arlo Guthrie and actor Vince Vaughn. And yet, amid a slow economy and partisan gridlock, the Fed has never been more important. This book explains this influential agency: its powers, operations, and how it sets policy. Of the two major governmental tools for shaping the economy, Congress controls fiscal policy—taxation and spending—and the Fed makes monetary policy—influencing how much money circulates in the economy, and how quickly. Traditionally the Fed has relied on three instruments: open-market operations (buying and selling U.S. bonds), lending to banks, and setting reserve requirements on bank deposits. It also helps to regulate the financial system. The book shows how these tools actually work, and answers a series of increasingly detailed questions in the series format. It asks, for instance, if the system of regional Fed banks needs modification for today's technological landscape; if there is corruption in the Fed's governance; what happens to profits from its operations; the impact of political pressure; the extent of Congressional oversight; and just how independent it truly is.Less
The Federal Reserve System—the central bank of the United States, better known as the Fed—has never been more controversial. Criticism has reached such levels that Congressman Ron Paul, contender for the Republican presidential nomination in 2012, published End the Fed, with blurbs from musician Arlo Guthrie and actor Vince Vaughn. And yet, amid a slow economy and partisan gridlock, the Fed has never been more important. This book explains this influential agency: its powers, operations, and how it sets policy. Of the two major governmental tools for shaping the economy, Congress controls fiscal policy—taxation and spending—and the Fed makes monetary policy—influencing how much money circulates in the economy, and how quickly. Traditionally the Fed has relied on three instruments: open-market operations (buying and selling U.S. bonds), lending to banks, and setting reserve requirements on bank deposits. It also helps to regulate the financial system. The book shows how these tools actually work, and answers a series of increasingly detailed questions in the series format. It asks, for instance, if the system of regional Fed banks needs modification for today's technological landscape; if there is corruption in the Fed's governance; what happens to profits from its operations; the impact of political pressure; the extent of Congressional oversight; and just how independent it truly is.
Helena Hamerow
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199203253
- eISBN:
- 9780191741760
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199203253.003.0004
- Subject:
- History, British and Irish Medieval History
This chapter begins by considering how the relationship of settlements and cemeteries changed from the early Anglo-Saxon period, characterized by long-lived communal cemeteries, to the establishment ...
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This chapter begins by considering how the relationship of settlements and cemeteries changed from the early Anglo-Saxon period, characterized by long-lived communal cemeteries, to the establishment in the Mid Saxon period of small, short-lived burial grounds within pre-existing settlements. It is argued that the changing relationship to dead ancestors that this reflects is linked to new forms of land use which were themselves a response to the demands of regular surplus extraction. The proximity of settlements and cemeteries may, in this light, be seen as a means of strengthening claims to landed resources. The second half of the chapter examines so-called ‘placed deposits’, the remnants of closure rituals associated with buildings and boundaries. Finally, the evidence for ritual structures and the association of some settlements with prehistoric monuments is considered.Less
This chapter begins by considering how the relationship of settlements and cemeteries changed from the early Anglo-Saxon period, characterized by long-lived communal cemeteries, to the establishment in the Mid Saxon period of small, short-lived burial grounds within pre-existing settlements. It is argued that the changing relationship to dead ancestors that this reflects is linked to new forms of land use which were themselves a response to the demands of regular surplus extraction. The proximity of settlements and cemeteries may, in this light, be seen as a means of strengthening claims to landed resources. The second half of the chapter examines so-called ‘placed deposits’, the remnants of closure rituals associated with buildings and boundaries. Finally, the evidence for ritual structures and the association of some settlements with prehistoric monuments is considered.
Howard Bodenhorn
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195147766
- eISBN:
- 9780199832910
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195147766.001.0001
- Subject:
- Economics and Finance, Economic History
An outpouring of recent theoretical and empirical research places financial intermediaries center stage in the process of economic growth. Through their dealings with customers as depositors, ...
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An outpouring of recent theoretical and empirical research places financial intermediaries center stage in the process of economic growth. Through their dealings with customers as depositors, borrowers, entrepreneurs, and shareholders, financial intermediaries have an advantage over other market participants in gathering and evaluating information on the likely success of many entrepreneurial projects. Despite this outpouring of work on the connection between aggregate economic activity and total financial intermediation, less attention has been paid to whether there is a best type of banking. Early America provides a valuable natural experiment because the decentralized federalist polity allowed for a great deal of financial experimentation. Distinct regional differences appeared. In New England, small, family‐owned banks appeared and a coherent system was knit together through the operation of the Suffolk system. In the Middle‐Atlantic region, two distinct experiments were conducted: deposit insurance and free banking. The former failed, but reappeared in various guises; the latter succeeded in that it influenced America's banking policy for the next 150 years. Banking in the South and West followed a number of paths, including state‐subsidized banks designed to offer long‐term mortgage credit, free banking, and branch banking. Branch banking was the most successful of these experiments. There was no single best banking system, but systems better adapted to local conditions.Less
An outpouring of recent theoretical and empirical research places financial intermediaries center stage in the process of economic growth. Through their dealings with customers as depositors, borrowers, entrepreneurs, and shareholders, financial intermediaries have an advantage over other market participants in gathering and evaluating information on the likely success of many entrepreneurial projects. Despite this outpouring of work on the connection between aggregate economic activity and total financial intermediation, less attention has been paid to whether there is a best type of banking. Early America provides a valuable natural experiment because the decentralized federalist polity allowed for a great deal of financial experimentation. Distinct regional differences appeared. In New England, small, family‐owned banks appeared and a coherent system was knit together through the operation of the Suffolk system. In the Middle‐Atlantic region, two distinct experiments were conducted: deposit insurance and free banking. The former failed, but reappeared in various guises; the latter succeeded in that it influenced America's banking policy for the next 150 years. Banking in the South and West followed a number of paths, including state‐subsidized banks designed to offer long‐term mortgage credit, free banking, and branch banking. Branch banking was the most successful of these experiments. There was no single best banking system, but systems better adapted to local conditions.
Howard Bodenhorn
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195147766
- eISBN:
- 9780199832910
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195147766.003.0007
- Subject:
- Economics and Finance, Economic History
Economists and regulatory agencies justify deposit insurance because they consider banks unique among capitalist firms. Because banks hold highly idiosyncratic portfolios that are hard for outside ...
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Economists and regulatory agencies justify deposit insurance because they consider banks unique among capitalist firms. Because banks hold highly idiosyncratic portfolios that are hard for outside monitors to value correctly, macroeconomic shocks that threaten the viability of individual banks can threaten the entire system. Although deposit insurance diminishes the threat of bank runs and, thereby, creates a social benefit, deposit insurance also generates potentially large costs, which provides a justification for regulatory oversight and regulation. Like most bank insurance schemes, the Safety Fund was prone to moral hazard, or excessive risk taking by member banks and adverse selection, wherein better banks left the system, leaving only high‐risk banks as members. The system collapsed after only a small number of failures because of poor oversight, moral hazard, adverse selection, regulatory forbearance, and an under‐funded insurance.Less
Economists and regulatory agencies justify deposit insurance because they consider banks unique among capitalist firms. Because banks hold highly idiosyncratic portfolios that are hard for outside monitors to value correctly, macroeconomic shocks that threaten the viability of individual banks can threaten the entire system. Although deposit insurance diminishes the threat of bank runs and, thereby, creates a social benefit, deposit insurance also generates potentially large costs, which provides a justification for regulatory oversight and regulation. Like most bank insurance schemes, the Safety Fund was prone to moral hazard, or excessive risk taking by member banks and adverse selection, wherein better banks left the system, leaving only high‐risk banks as members. The system collapsed after only a small number of failures because of poor oversight, moral hazard, adverse selection, regulatory forbearance, and an under‐funded insurance.
Jaime Reis
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198288039
- eISBN:
- 9780191596230
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288034.003.0020
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Economic History
Portugal was still a relatively poor country at the end of the First World War, and its banking system was small and undeveloped. The public viewed the commercial banks with suspicion, and growth of ...
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Portugal was still a relatively poor country at the end of the First World War, and its banking system was small and undeveloped. The public viewed the commercial banks with suspicion, and growth of deposits and assets was very slow. The author examines events between the two wars and shows that the system changed considerably. Those banks that emerged in this period and learnt both to weather its storms, and to work within the highly regulated political regime in force from 1928, were to be Portugal's long‐term survivors. The events and policies of the two decades produced a financial system that was becoming progressively less fragile, more concentrated, and more specialized. Public trust in the system increased, and there was a strong expansion in the level of deposits and, thus, of the money supply.Less
Portugal was still a relatively poor country at the end of the First World War, and its banking system was small and undeveloped. The public viewed the commercial banks with suspicion, and growth of deposits and assets was very slow. The author examines events between the two wars and shows that the system changed considerably. Those banks that emerged in this period and learnt both to weather its storms, and to work within the highly regulated political regime in force from 1928, were to be Portugal's long‐term survivors. The events and policies of the two decades produced a financial system that was becoming progressively less fragile, more concentrated, and more specialized. Public trust in the system increased, and there was a strong expansion in the level of deposits and, thus, of the money supply.
Karl-Hermann Fischer and Christian Pfeil
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199253166
- eISBN:
- 9780191601651
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253161.003.0010
- Subject:
- Economics and Finance, Financial Economics
Offers an in-depth discussion of regulatory and competitive issues in German banking. Emphasising that regulation, market structure, and competitive conduct are deeply interrelated the authors look ...
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Offers an in-depth discussion of regulatory and competitive issues in German banking. Emphasising that regulation, market structure, and competitive conduct are deeply interrelated the authors look at bank regulation from an Industrial Organisation perspective. Special consideration is given to the three-pillar structure of German banking comprising private, public, and co-operative banking institutions as well as to the driving forces that shaped bank regulation and supervision from its beginning in 1931. To assess market structure and competition in Germany’s banking market, the available empirical evidence is carefully discussed. A concluding section points to the challenges stemming from the decision to phase out state-guarantees for public banks.Less
Offers an in-depth discussion of regulatory and competitive issues in German banking. Emphasising that regulation, market structure, and competitive conduct are deeply interrelated the authors look at bank regulation from an Industrial Organisation perspective. Special consideration is given to the three-pillar structure of German banking comprising private, public, and co-operative banking institutions as well as to the driving forces that shaped bank regulation and supervision from its beginning in 1931. To assess market structure and competition in Germany’s banking market, the available empirical evidence is carefully discussed. A concluding section points to the challenges stemming from the decision to phase out state-guarantees for public banks.
Hrishikes Bhattacharya
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198074106
- eISBN:
- 9780199080861
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198074106.003.0004
- Subject:
- Economics and Finance, Financial Economics
This chapter lays down the principles behind the formulation of the lending strategy and loan policy of a bank in a competitive environment. It begins by outlining the principal objectives of the ...
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This chapter lays down the principles behind the formulation of the lending strategy and loan policy of a bank in a competitive environment. It begins by outlining the principal objectives of the lending strategy, which are primarily drawn from the strategic plan of a banking organization. It outlines important concepts such as credit-deposit ratio, interest rate policy, loan portfolio and exposure policy, loan-to-value ratio, and repayment policy. It emphasizes that the success of a loan policy document lies in its zealous implementation.Less
This chapter lays down the principles behind the formulation of the lending strategy and loan policy of a bank in a competitive environment. It begins by outlining the principal objectives of the lending strategy, which are primarily drawn from the strategic plan of a banking organization. It outlines important concepts such as credit-deposit ratio, interest rate policy, loan portfolio and exposure policy, loan-to-value ratio, and repayment policy. It emphasizes that the success of a loan policy document lies in its zealous implementation.
Hrishikes Bhattacharya
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198074106
- eISBN:
- 9780199080861
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198074106.003.0009
- Subject:
- Economics and Finance, Financial Economics
Current liabilities originate from current or short-term promises made to non-owners of a business, namely suppliers of goods and services, including suppliers of short-term cash. As current assets ...
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Current liabilities originate from current or short-term promises made to non-owners of a business, namely suppliers of goods and services, including suppliers of short-term cash. As current assets originate similarly, but on the other side of the balance sheet, it is normally expected that current liabilities are to be paid from out of current assets. This chapter discusses the origination of current liabilities, dangers of overtrading and the safety margin, and also covers important items of current liabilities — trade creditors, deposits from customers and public, inter-corporate loans and investments, bridge loans, commercial paper, and registration of charges.Less
Current liabilities originate from current or short-term promises made to non-owners of a business, namely suppliers of goods and services, including suppliers of short-term cash. As current assets originate similarly, but on the other side of the balance sheet, it is normally expected that current liabilities are to be paid from out of current assets. This chapter discusses the origination of current liabilities, dangers of overtrading and the safety margin, and also covers important items of current liabilities — trade creditors, deposits from customers and public, inter-corporate loans and investments, bridge loans, commercial paper, and registration of charges.
Don Fullerton
- Published in print:
- 2005
- Published Online:
- October 2005
- ISBN:
- 9780199278596
- eISBN:
- 9780191602856
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199278598.003.0006
- Subject:
- Economics and Finance, Financial Economics
Under current policies in US states, the marginal cost to an individual household for disposal of another bag of garbage is essentially zero, even though collection and disposal costs increase with ...
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Under current policies in US states, the marginal cost to an individual household for disposal of another bag of garbage is essentially zero, even though collection and disposal costs increase with the amount of garbage. Instead, the social cost per bag of garbage should be the product’s price plus the optimal tax rate. This chapter develops a theoretical model to characterize optimal waste taxes and tax-subsidy policies. It shows that an appropriately designed excise can achieve efficient levels of waste disposal and recycling, as well as raise revenue for state governments. The recommended approach would be a tax-subsidy or deposit-refund system, under which product sales would be taxed at retail stores and the recycling and legal garbage collection subsidized. It is shown that this Pigouvian type of environmental tax reform can match all the effects of having both the tax on garbage and the unavailable ‘tax on dumping’. In addition, the empirical literature is reviewed on how unit pricing of solid waste affects disposal and recycling, whilst the welfare costs of illicit disposal are analysed.Less
Under current policies in US states, the marginal cost to an individual household for disposal of another bag of garbage is essentially zero, even though collection and disposal costs increase with the amount of garbage. Instead, the social cost per bag of garbage should be the product’s price plus the optimal tax rate. This chapter develops a theoretical model to characterize optimal waste taxes and tax-subsidy policies. It shows that an appropriately designed excise can achieve efficient levels of waste disposal and recycling, as well as raise revenue for state governments. The recommended approach would be a tax-subsidy or deposit-refund system, under which product sales would be taxed at retail stores and the recycling and legal garbage collection subsidized. It is shown that this Pigouvian type of environmental tax reform can match all the effects of having both the tax on garbage and the unavailable ‘tax on dumping’. In addition, the empirical literature is reviewed on how unit pricing of solid waste affects disposal and recycling, whilst the welfare costs of illicit disposal are analysed.
Jordi Canals
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780198775065
- eISBN:
- 9780191695353
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198775065.003.0003
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American ...
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The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American banking crisis was and still is the main historical experience customarily used as a reference point when establishing the limits of bank involvement in activities other than pure and simple financial intermediation. This chapter discusses the reasons for the banking crisis in the United States, and the relationship between the cause of the crisis and the universal banking system prevailing at that time. The Roosevelt administration initiated a large-scale reform of the financial system in response to the crisis. The so-called 1933 Banking Act represented a new approach to the problem of financial regulation which, for the first time, followed two distinct lines. On the one hand, there was the separation between financial intermediation or commercial banking activities and investment activities in financial assets or non-financial companies. On the other hand, there was the institution of a deposit insurance to guarantee that deposit holders would receive a certain minimum sum in the event that their bank should fail.Less
The banking crisis that shook the United States in the 1930s meant the end of the universal banking system that, until then, had shaped that and many other financial systems. In fact, the American banking crisis was and still is the main historical experience customarily used as a reference point when establishing the limits of bank involvement in activities other than pure and simple financial intermediation. This chapter discusses the reasons for the banking crisis in the United States, and the relationship between the cause of the crisis and the universal banking system prevailing at that time. The Roosevelt administration initiated a large-scale reform of the financial system in response to the crisis. The so-called 1933 Banking Act represented a new approach to the problem of financial regulation which, for the first time, followed two distinct lines. On the one hand, there was the separation between financial intermediation or commercial banking activities and investment activities in financial assets or non-financial companies. On the other hand, there was the institution of a deposit insurance to guarantee that deposit holders would receive a certain minimum sum in the event that their bank should fail.
Peter d. Spencer
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198776093
- eISBN:
- 9780191695384
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198776093.003.0010
- Subject:
- Economics and Finance, Financial Economics
Based on the Diamond Model, the assumption is that bank liabilities are fixed-term loans. Investors loan from the bank to ultimate borrowers so that they may delegate the monitoring role. However, in ...
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Based on the Diamond Model, the assumption is that bank liabilities are fixed-term loans. Investors loan from the bank to ultimate borrowers so that they may delegate the monitoring role. However, in reality, retail bank liabilities consist of deposits that can be withdrawn without notice. This chapter focuses on the structure of the bank deposit, contract deposit insurance, and other ways of making the banking system run-proof. It first introduces the Dybvig and Diamond model, which is similar to the two-state model in Chapter 3, except that the preferences rather than the production outcomes are state dependent, meaning that people need early or late consumption, which depends upon which state materializes. The chapter also deals with optimal insurance, social insurance, and deposit insurance, which is a way of eliminating bank runs.Less
Based on the Diamond Model, the assumption is that bank liabilities are fixed-term loans. Investors loan from the bank to ultimate borrowers so that they may delegate the monitoring role. However, in reality, retail bank liabilities consist of deposits that can be withdrawn without notice. This chapter focuses on the structure of the bank deposit, contract deposit insurance, and other ways of making the banking system run-proof. It first introduces the Dybvig and Diamond model, which is similar to the two-state model in Chapter 3, except that the preferences rather than the production outcomes are state dependent, meaning that people need early or late consumption, which depends upon which state materializes. The chapter also deals with optimal insurance, social insurance, and deposit insurance, which is a way of eliminating bank runs.
Jordi Canals
- Published in print:
- 1994
- Published Online:
- October 2011
- ISBN:
- 9780198773504
- eISBN:
- 9780191695322
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198773504.003.0006
- Subject:
- Business and Management, Strategy, Finance, Accounting, and Banking
This chapter provides a structural overview of the French banking system. It presents an overview of savings and investment in the French economy, which is broken down into various sectors and ...
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This chapter provides a structural overview of the French banking system. It presents an overview of savings and investment in the French economy, which is broken down into various sectors and provides an international comparison of French corporate indebtedness to other industrialized countries, measured according to cash flow over gross investments. The chapter notes that the principal characteristic of the old regulation was that it encouraged specialization within credit activities, establishing different legal requirements for each type of bank (deposit banks, investment banks, and medium- and long-term credit banks). In contrast, the new legislation is based on the principle of universality and establishes standardized directives. The chapter observes that the nature of French banking is the recent trend in the public sector toward progressive deregulation of the institutions and financial markets. However, it notes that some very significant regulations still exist, principally in the area of deposit remuneration.Less
This chapter provides a structural overview of the French banking system. It presents an overview of savings and investment in the French economy, which is broken down into various sectors and provides an international comparison of French corporate indebtedness to other industrialized countries, measured according to cash flow over gross investments. The chapter notes that the principal characteristic of the old regulation was that it encouraged specialization within credit activities, establishing different legal requirements for each type of bank (deposit banks, investment banks, and medium- and long-term credit banks). In contrast, the new legislation is based on the principle of universality and establishes standardized directives. The chapter observes that the nature of French banking is the recent trend in the public sector toward progressive deregulation of the institutions and financial markets. However, it notes that some very significant regulations still exist, principally in the area of deposit remuneration.
Donald S. McLusky and Michael Elliott
- Published in print:
- 2004
- Published Online:
- April 2010
- ISBN:
- 9780198525080
- eISBN:
- 9780191728198
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198525080.003.0004
- Subject:
- Biology, Ecology
This chapter examines the productivity of the important primary consumer trophic level, considering first the macrofaunal mud dwellers, which are mostly infaunal deposit feeders, but which may make ...
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This chapter examines the productivity of the important primary consumer trophic level, considering first the macrofaunal mud dwellers, which are mostly infaunal deposit feeders, but which may make excursions into the epifauna or utilize the suspension mode of feeding. It then looks at the macrofaunal surface dwellers, considering both mobile and static representatives who are predominantly suspension feeders. The potentially important, but less studied, meiobenthic fraction is also examined, as well as the zooplankton. Finally, the reasons for the high levels of production are studied.Less
This chapter examines the productivity of the important primary consumer trophic level, considering first the macrofaunal mud dwellers, which are mostly infaunal deposit feeders, but which may make excursions into the epifauna or utilize the suspension mode of feeding. It then looks at the macrofaunal surface dwellers, considering both mobile and static representatives who are predominantly suspension feeders. The potentially important, but less studied, meiobenthic fraction is also examined, as well as the zooplankton. Finally, the reasons for the high levels of production are studied.
Assaf Razin
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780262028592
- eISBN:
- 9780262327701
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262028592.003.0005
- Subject:
- Economics and Finance, International
Depository institutions, including banks, investment banks, hedge funds, and so forth, are inherently unstable because they have a mismatch in maturity between the term structure of assets and ...
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Depository institutions, including banks, investment banks, hedge funds, and so forth, are inherently unstable because they have a mismatch in maturity between the term structure of assets and liabilities.In particular, they typically finance long-term investments with shortterm deposits. This exposes banks to the risk of bank runs: When many depositors demand their money in the short term, banks will have to liquidate long-term investments at a loss, leading to their failure.The chapter reviews the analytics of the fragile bank like institutions.Less
Depository institutions, including banks, investment banks, hedge funds, and so forth, are inherently unstable because they have a mismatch in maturity between the term structure of assets and liabilities.In particular, they typically finance long-term investments with shortterm deposits. This exposes banks to the risk of bank runs: When many depositors demand their money in the short term, banks will have to liquidate long-term investments at a loss, leading to their failure.The chapter reviews the analytics of the fragile bank like institutions.
