Richard Roberts
- Published in print:
- 2005
- Published Online:
- September 2007
- ISBN:
- 9780199269495
- eISBN:
- 9780191710162
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269495.003.0014
- Subject:
- Business and Management, Finance, Accounting, and Banking
The prosperity of the international financial services industry in the 1980s and 1990s stimulated other financial centres to try to boost, or just retain, their share of activity. Challenges were ...
More
The prosperity of the international financial services industry in the 1980s and 1990s stimulated other financial centres to try to boost, or just retain, their share of activity. Challenges were mounted by Frankfurt and Paris, taking advantage of the opportunity offered by the UK's non-participation in the launch of the European single currency. There were also internal challenges that threatened to erode the City's competitive standing, notably congested local transport, creeping taxation, and increasingly bureaucratic regulation. This chapter considers the seriousness of these challenges and the City's outlook for the 21st century.Less
The prosperity of the international financial services industry in the 1980s and 1990s stimulated other financial centres to try to boost, or just retain, their share of activity. Challenges were mounted by Frankfurt and Paris, taking advantage of the opportunity offered by the UK's non-participation in the launch of the European single currency. There were also internal challenges that threatened to erode the City's competitive standing, notably congested local transport, creeping taxation, and increasingly bureaucratic regulation. This chapter considers the seriousness of these challenges and the City's outlook for the 21st century.
Richard Herring and Til Schuermann
- Published in print:
- 2005
- Published Online:
- January 2007
- ISBN:
- 9780195169713
- eISBN:
- 9780199783717
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195169713.003.0001
- Subject:
- Economics and Finance, Financial Economics
Currently, banks, securities firms, and insurance companies conduct trading businesses that involve many of the same financial instruments and several of the same counterparties but that are subject ...
More
Currently, banks, securities firms, and insurance companies conduct trading businesses that involve many of the same financial instruments and several of the same counterparties but that are subject to very different capital regulations. This chapter examines why these regulatory differences exist and what they imply for differences in minimum capital requirements for position risk. It considers differences in the definition and measurement of regulatory capital, and quantifies differences in the capital charges for position risk by reference to a model portfolio that contains a variety of financial instruments, including equity, fixed income instruments, swaps, foreign exchange positions, and options — instruments that may appear in the portfolios of securities firms, banks, or insurance companies. For most leading firms in the financial services industry, however, market forces, not minimum regulatory capital requirements, appear to play the dominant role in firms' capital decisions. The chapter concludes by considering measures to enhance market discipline.Less
Currently, banks, securities firms, and insurance companies conduct trading businesses that involve many of the same financial instruments and several of the same counterparties but that are subject to very different capital regulations. This chapter examines why these regulatory differences exist and what they imply for differences in minimum capital requirements for position risk. It considers differences in the definition and measurement of regulatory capital, and quantifies differences in the capital charges for position risk by reference to a model portfolio that contains a variety of financial instruments, including equity, fixed income instruments, swaps, foreign exchange positions, and options — instruments that may appear in the portfolios of securities firms, banks, or insurance companies. For most leading firms in the financial services industry, however, market forces, not minimum regulatory capital requirements, appear to play the dominant role in firms' capital decisions. The chapter concludes by considering measures to enhance market discipline.
Wendy Dobson
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199235216
- eISBN:
- 9780191715624
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235216.003.0007
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter notes the special role of financial services in an economy and distinguishes policy reform from domestic deregulation and capital account deregulation. The impacts of policy reform and ...
More
This chapter notes the special role of financial services in an economy and distinguishes policy reform from domestic deregulation and capital account deregulation. The impacts of policy reform and the benefits and risks of broader financial sector development, growth, income distribution, and poverty are discussed. The impacts of reform include: increased domestic competition; causing further reform and greater regulatory transparency; increased resiliency of the domestic financial system to shocks; encouragement of the diffusion of new skills, products and technologies; and facilitation of access to international capital. The elements of successful trade-policy reform are noted, based on the experiences of China, Thailand, and Latin America. Issues in need of additional research are identified, including the impact on domestic financial performance of foreign equity participation, improvement of available data on and transparency of barriers to cross-border transactions and foreign entry, measures used to moderate unanticipated impacts of liberalization, and further elucidation of the rationales for the WTO Financial Services Agreement (FSA) commitments. The role of international negotiations is addressed in terms of how they can help individual countries, what can be learned from international rules and commitments undertaken, whether there is scope for improvement, whether existing commitments promote desirable policies, possible reasons for refraining from commitments, and issues in need of further research. An addendum reviews the liberalization of financial services in the Western Hemisphere and in China.Less
This chapter notes the special role of financial services in an economy and distinguishes policy reform from domestic deregulation and capital account deregulation. The impacts of policy reform and the benefits and risks of broader financial sector development, growth, income distribution, and poverty are discussed. The impacts of reform include: increased domestic competition; causing further reform and greater regulatory transparency; increased resiliency of the domestic financial system to shocks; encouragement of the diffusion of new skills, products and technologies; and facilitation of access to international capital. The elements of successful trade-policy reform are noted, based on the experiences of China, Thailand, and Latin America. Issues in need of additional research are identified, including the impact on domestic financial performance of foreign equity participation, improvement of available data on and transparency of barriers to cross-border transactions and foreign entry, measures used to moderate unanticipated impacts of liberalization, and further elucidation of the rationales for the WTO Financial Services Agreement (FSA) commitments. The role of international negotiations is addressed in terms of how they can help individual countries, what can be learned from international rules and commitments undertaken, whether there is scope for improvement, whether existing commitments promote desirable policies, possible reasons for refraining from commitments, and issues in need of further research. An addendum reviews the liberalization of financial services in the Western Hemisphere and in China.
Paul Stoneman
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199572489
- eISBN:
- 9780191722257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572489.003.0005
- Subject:
- Business and Management, Innovation
This chapter is the second taking a micro view and explores the role of soft innovation in three industries outside the creative industries, i.e. food, pharmaceuticals, and finance. Outside the ...
More
This chapter is the second taking a micro view and explores the role of soft innovation in three industries outside the creative industries, i.e. food, pharmaceuticals, and finance. Outside the creative sector the measurement of soft innovation is hampered by data availability. However, it is possible to observe extensive soft innovation as reflected in new product launches that do not reflect changed functionality. This is especially prevalent in the food industry, but also can be found in banking and pharmaceuticals. The study of generics in pharmaceuticals suggests that soft innovation activity may be the larger part of innovative activity in that industry. All the data at differing levels of aggregation indicates that rates of soft innovation are high and that such innovation is widespread and extensive. The chapter argues that to concentrate solely on TPP innovation and to ignore soft innovation provides only a limited and biased picture of total innovative activity.Less
This chapter is the second taking a micro view and explores the role of soft innovation in three industries outside the creative industries, i.e. food, pharmaceuticals, and finance. Outside the creative sector the measurement of soft innovation is hampered by data availability. However, it is possible to observe extensive soft innovation as reflected in new product launches that do not reflect changed functionality. This is especially prevalent in the food industry, but also can be found in banking and pharmaceuticals. The study of generics in pharmaceuticals suggests that soft innovation activity may be the larger part of innovative activity in that industry. All the data at differing levels of aggregation indicates that rates of soft innovation are high and that such innovation is widespread and extensive. The chapter argues that to concentrate solely on TPP innovation and to ignore soft innovation provides only a limited and biased picture of total innovative activity.
Aaditya Mattoo, Robert M. Stern, and Gianni Zanini (eds)
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199235216
- eISBN:
- 9780191715624
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235216.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book aims to improve understanding of the economic implications of services trade, liberalization, regulatory reforms, and international negotiations. It discusses the basic economics of ...
More
This book aims to improve understanding of the economic implications of services trade, liberalization, regulatory reforms, and international negotiations. It discusses the basic economics of services trade, cross-sectoral domestic policy issues, and the international negotiating framework, as well as data sources and measures of services trade barriers. It addresses how services reform — including in banking and the broader financial sector, in health, and in key infrastructure sectors such as telecommunications and transport — can promote efficiency, economic growth, and poverty reduction. The book points out that the benefits of services liberalization may be diminished by flaws in reform programs, such as inadequate efforts to introduce competition; failure to strengthen regulation or institute policies that ensure that the poor have access to services in liberalized markets; inappropriate sequencing of reforms; and inadequate foreign assistance to help implement reforms. The ongoing GATS negotiations in the Doha Development Round could help achieve reciprocal liberalization, lend credibility to reform, and help mobilize external assistance to support reform. There may also be greater scope for achieving deeper integration of particular services sectors, and for greater cooperation on temporary migration (mode 4) under regional or bilateral agreements.Less
This book aims to improve understanding of the economic implications of services trade, liberalization, regulatory reforms, and international negotiations. It discusses the basic economics of services trade, cross-sectoral domestic policy issues, and the international negotiating framework, as well as data sources and measures of services trade barriers. It addresses how services reform — including in banking and the broader financial sector, in health, and in key infrastructure sectors such as telecommunications and transport — can promote efficiency, economic growth, and poverty reduction. The book points out that the benefits of services liberalization may be diminished by flaws in reform programs, such as inadequate efforts to introduce competition; failure to strengthen regulation or institute policies that ensure that the poor have access to services in liberalized markets; inappropriate sequencing of reforms; and inadequate foreign assistance to help implement reforms. The ongoing GATS negotiations in the Doha Development Round could help achieve reciprocal liberalization, lend credibility to reform, and help mobilize external assistance to support reform. There may also be greater scope for achieving deeper integration of particular services sectors, and for greater cooperation on temporary migration (mode 4) under regional or bilateral agreements.
Markus Venzin
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780199535200
- eISBN:
- 9780191701153
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199535200.003.0013
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
This chapter discusses the impact of the subprime crisis on the international strategies of financial services firms. Many mostly passive investors from emerging economies will get the opportunity to ...
More
This chapter discusses the impact of the subprime crisis on the international strategies of financial services firms. Many mostly passive investors from emerging economies will get the opportunity to acquire a share in some of the most prestigious financial services firms. New clearing platforms for investment vehicles will appear to create transparency and restore trust. Some of the big financial institutions will have to sell parts of their businesses to make up for their huge write-downs. New governance models need to be found to establish process standards and managerial practices that stabilize the financial services systems. But maybe more importantly, financial services firms need to find new ways to attract and keep talent without losing control over their activities.Less
This chapter discusses the impact of the subprime crisis on the international strategies of financial services firms. Many mostly passive investors from emerging economies will get the opportunity to acquire a share in some of the most prestigious financial services firms. New clearing platforms for investment vehicles will appear to create transparency and restore trust. Some of the big financial institutions will have to sell parts of their businesses to make up for their huge write-downs. New governance models need to be found to establish process standards and managerial practices that stabilize the financial services systems. But maybe more importantly, financial services firms need to find new ways to attract and keep talent without losing control over their activities.
Roy C. Smith and Ingo Walter
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195171679
- eISBN:
- 9780199783618
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195171675.003.0002
- Subject:
- Economics and Finance, Microeconomics
This chapter examines the fundamental effects related to the evolving dominance of capital markets. By the end of the 20th century, the proportion of all financial assets held by banks had declined ...
More
This chapter examines the fundamental effects related to the evolving dominance of capital markets. By the end of the 20th century, the proportion of all financial assets held by banks had declined to approximately 30% from 45% in 1980, with the difference transferred to global financial markets that had developed to an extraordinary, completely unprecedented size with market capitalization of stocks and bonds exceeding $72 trillion in 2000. These markets contained powerful forces that could quickly move funds in large quantities around the world to jump into (or out of) a suddenly discovered investment opportunity. These forces were energized by enormous turnover volumes — the value of consolidated world stock trading in 2000 was more than $47 trillion, one and a half times its market capitalization. About half of this trading occurred outside the United States, in stock markets in Europe, Asia, and Latin America.Less
This chapter examines the fundamental effects related to the evolving dominance of capital markets. By the end of the 20th century, the proportion of all financial assets held by banks had declined to approximately 30% from 45% in 1980, with the difference transferred to global financial markets that had developed to an extraordinary, completely unprecedented size with market capitalization of stocks and bonds exceeding $72 trillion in 2000. These markets contained powerful forces that could quickly move funds in large quantities around the world to jump into (or out of) a suddenly discovered investment opportunity. These forces were energized by enormous turnover volumes — the value of consolidated world stock trading in 2000 was more than $47 trillion, one and a half times its market capitalization. About half of this trading occurred outside the United States, in stock markets in Europe, Asia, and Latin America.
Li-Gang Liu and Elvira Kurmanalieva
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199235889
- eISBN:
- 9780191717109
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235889.003.0013
- Subject:
- Economics and Finance, South and East Asia
This chapter examines the impact of China's financial services trade liberalization on capital flows. First, it reports that foreign banks, in spite of their small presence in China, have already ...
More
This chapter examines the impact of China's financial services trade liberalization on capital flows. First, it reports that foreign banks, in spite of their small presence in China, have already played an important role in channeling capital flows in and out of the country. Second, it examines the impact of the liberalization commitments made under the GATS in financial services and especially in the banking sector on international bank loans to developing economies. The chapter is organized as follows: Section 13.2 provides an updated review of the GATS with a focus on the financial services. Section 13.3 documents the role of foreign banks in channeling capital flows in and out of China. Section 13.4 presents some empirical findings on whether the financial services trade liberalization commitments promote bank loans to emerging market economies. Section 13.5 concludes and discusses implications for policy.Less
This chapter examines the impact of China's financial services trade liberalization on capital flows. First, it reports that foreign banks, in spite of their small presence in China, have already played an important role in channeling capital flows in and out of the country. Second, it examines the impact of the liberalization commitments made under the GATS in financial services and especially in the banking sector on international bank loans to developing economies. The chapter is organized as follows: Section 13.2 provides an updated review of the GATS with a focus on the financial services. Section 13.3 documents the role of foreign banks in channeling capital flows in and out of China. Section 13.4 presents some empirical findings on whether the financial services trade liberalization commitments promote bank loans to emerging market economies. Section 13.5 concludes and discusses implications for policy.
Gordon L. Clark
- Published in print:
- 2003
- Published Online:
- January 2010
- ISBN:
- 9780199253647
- eISBN:
- 9780191719752
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199253647.003.0007
- Subject:
- Business and Management, Pensions and Pension Management
London dominates cross-border transactions and is the favoured international location of many global banks and market intermediaries. However, this dominance has prompted recurrent geographical and ...
More
London dominates cross-border transactions and is the favoured international location of many global banks and market intermediaries. However, this dominance has prompted recurrent geographical and social tensions; the growth of regional income and employment inequalities over recent years has been linked to the concentrated economic and political power of the city financial institutions. Research on European social security systems suggests that Anglo-American financial markets will play increasingly important roles in the investment of retirement income assets. This chapter explains how and why London occupies such a vital role in the European and global financial services industries, focusing on the development of financial products relevant to the retirement incomes of European citizens. The oligopolistic behavior and competition in the financial services industry in London are discussed, along with industry organisation, product differentiation and quality, supply and demand of financial products, complementarities between financial products and services, functional and spatial concentration of bulge-bracket financial firms, and the role of London in the global economy.Less
London dominates cross-border transactions and is the favoured international location of many global banks and market intermediaries. However, this dominance has prompted recurrent geographical and social tensions; the growth of regional income and employment inequalities over recent years has been linked to the concentrated economic and political power of the city financial institutions. Research on European social security systems suggests that Anglo-American financial markets will play increasingly important roles in the investment of retirement income assets. This chapter explains how and why London occupies such a vital role in the European and global financial services industries, focusing on the development of financial products relevant to the retirement incomes of European citizens. The oligopolistic behavior and competition in the financial services industry in London are discussed, along with industry organisation, product differentiation and quality, supply and demand of financial products, complementarities between financial products and services, functional and spatial concentration of bulge-bracket financial firms, and the role of London in the global economy.
Markus Venzin
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780199535200
- eISBN:
- 9780191701153
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199535200.003.0002
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
The strategic challenges of internationalization vary greatly between different financial services sectors. A retail bank such as the Italian UniCredit, as opposed to an investment bank such as ...
More
The strategic challenges of internationalization vary greatly between different financial services sectors. A retail bank such as the Italian UniCredit, as opposed to an investment bank such as Merrill Lynch or an online bank like ING Direct, will pursue distinct strategies. Different countries and regions do pose very different internationalization issues: for a European firm it is more hazardous and challenging to expand into China than to neighbouring countries within the same trade bloc. Similarly, serving different customer groups in foreign countries will pose distinct opportunities: large corporate customers tend to have less naturally differentiated needs than small corporate customers or retail clients. Hence, internationalization strategies need to be carefully tailored to specific circumstances. This chapter describes how the financial services industry emerged and how the first financial institutions started to engage in international transactions. The main objective is to increase our understanding of the factors that have led to the rise (and fall) of the first internationally active financial services firms.Less
The strategic challenges of internationalization vary greatly between different financial services sectors. A retail bank such as the Italian UniCredit, as opposed to an investment bank such as Merrill Lynch or an online bank like ING Direct, will pursue distinct strategies. Different countries and regions do pose very different internationalization issues: for a European firm it is more hazardous and challenging to expand into China than to neighbouring countries within the same trade bloc. Similarly, serving different customer groups in foreign countries will pose distinct opportunities: large corporate customers tend to have less naturally differentiated needs than small corporate customers or retail clients. Hence, internationalization strategies need to be carefully tailored to specific circumstances. This chapter describes how the financial services industry emerged and how the first financial institutions started to engage in international transactions. The main objective is to increase our understanding of the factors that have led to the rise (and fall) of the first internationally active financial services firms.
Ma. Joy V. Abrenica and Gilberto M. Llanto
- Published in print:
- 2003
- Published Online:
- November 2003
- ISBN:
- 9780195158984
- eISBN:
- 9780199869107
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195158989.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter documents the changing face of the services industry over the past three decades (1970–2000). It makes a special reference to two case studies – telecommunications and banking. Both are ...
More
This chapter documents the changing face of the services industry over the past three decades (1970–2000). It makes a special reference to two case studies – telecommunications and banking. Both are largely positive cases of reform leading to a more efficient provision of a range of services. There are other cases of successful reforms in the sector, including domestic shipping and civil aviation. This chapter also closely examines regulations that distort trade in services.Less
This chapter documents the changing face of the services industry over the past three decades (1970–2000). It makes a special reference to two case studies – telecommunications and banking. Both are largely positive cases of reform leading to a more efficient provision of a range of services. There are other cases of successful reforms in the sector, including domestic shipping and civil aviation. This chapter also closely examines regulations that distort trade in services.
Angela A. Hung, Noreen Clancy, and Jeff Dominitz
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199696819
- eISBN:
- 9780191732089
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199696819.003.0007
- Subject:
- Business and Management, Pensions and Pension Management, Finance, Accounting, and Banking
The financial services industry has been changing so fast and growing so complex that broker-dealers and investment advisers, which are subject to different regulations, are no longer easy to ...
More
The financial services industry has been changing so fast and growing so complex that broker-dealers and investment advisers, which are subject to different regulations, are no longer easy to distinguish from one another. Since the 1990s, market demands have introduced new business practices and firms have taken many different forms, making it harder for investors to distinguish these traditional distinctions. Given such complexity, it is not surprising that typical investors are confused about the nature of the services their financial professional offers. Many of those surveyed, as well as focus group participants, did not understand the key distinctions between investment advisers and broker-dealers: their duties, the titles they use, the services they offer, or the fees they charge. They attributed part of their confusion to the dozens of titles used in the field, including generic titles such as financial advisor and financial consultant, as well as advertisements that claim “we do it all.”Less
The financial services industry has been changing so fast and growing so complex that broker-dealers and investment advisers, which are subject to different regulations, are no longer easy to distinguish from one another. Since the 1990s, market demands have introduced new business practices and firms have taken many different forms, making it harder for investors to distinguish these traditional distinctions. Given such complexity, it is not surprising that typical investors are confused about the nature of the services their financial professional offers. Many of those surveyed, as well as focus group participants, did not understand the key distinctions between investment advisers and broker-dealers: their duties, the titles they use, the services they offer, or the fees they charge. They attributed part of their confusion to the dozens of titles used in the field, including generic titles such as financial advisor and financial consultant, as well as advertisements that claim “we do it all.”
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/9780198775065.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
This chapter is structured around two main themes. The first discusses the advantages and disadvantages of universal and specialized banks from the perspective of the financial organizations ...
More
This chapter is structured around two main themes. The first discusses the advantages and disadvantages of universal and specialized banks from the perspective of the financial organizations themselves. The second theme is the analysis of the advantages and disadvantages of both models for a country as a whole. The chapter also talks about the advisability or not of a bank deciding either to offer a very wide range of financial services, some of which have their own unique competitive dynamics, or to specialize.Less
This chapter is structured around two main themes. The first discusses the advantages and disadvantages of universal and specialized banks from the perspective of the financial organizations themselves. The second theme is the analysis of the advantages and disadvantages of both models for a country as a whole. The chapter also talks about the advisability or not of a bank deciding either to offer a very wide range of financial services, some of which have their own unique competitive dynamics, or to specialize.
Markus Venzin
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780199535200
- eISBN:
- 9780191701153
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199535200.003.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
This introductory chapter begins with a brief discussion of the emergence of a new era of global banking and insurance. It outlines five of the reasons to study the financial services industry. It ...
More
This introductory chapter begins with a brief discussion of the emergence of a new era of global banking and insurance. It outlines five of the reasons to study the financial services industry. It then describes the structure of the book. The book provides an overview of how expansionary strategies of financial services firms are impacted by globalization and discusses performance drivers during internationalization processes. It explores and challenges conventional assumptions from the international management literature on topics such as the limits of international expansion, the importance of cultural and institutional distance, the nature of economies of scale and scope, the existence of first mover advantages, the logic behind the global value chain configuration, the speed and timing of market entry, and the organizational architecture.Less
This introductory chapter begins with a brief discussion of the emergence of a new era of global banking and insurance. It outlines five of the reasons to study the financial services industry. It then describes the structure of the book. The book provides an overview of how expansionary strategies of financial services firms are impacted by globalization and discusses performance drivers during internationalization processes. It explores and challenges conventional assumptions from the international management literature on topics such as the limits of international expansion, the importance of cultural and institutional distance, the nature of economies of scale and scope, the existence of first mover advantages, the logic behind the global value chain configuration, the speed and timing of market entry, and the organizational architecture.
EMILIOS AVGOULEAS
- Published in print:
- 2005
- Published Online:
- January 2010
- ISBN:
- 9780199244522
- eISBN:
- 9780191715105
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199244522.003.0007
- Subject:
- Law, Competition Law
This chapter discusses the legal and regulatory framework dealing with market abuse in the UK. The UK’s market abuse regime has a dual nature and is based both on criminal law and regulatory ...
More
This chapter discusses the legal and regulatory framework dealing with market abuse in the UK. The UK’s market abuse regime has a dual nature and is based both on criminal law and regulatory prohibitions, which overlap to a considerable degree. The regulatory regime dealing with market abuse was introduced by the Financial Services and Markets Act 2000 (FSMA 2000), which provided for a regulatory offence of market abuse. FSMA 2000 came into effect on December 1, 2001; the FSMA 2000 market abuse regime was substantially remodelled in July 2005 following the adoption of the Treasury’s Market Abuse and Investment Recommendation (Media) Regulations and attendant changes to the FSA’s Handbook, which implemented in the UK the EC Market Abuse Directive and its Level 2 Implementing Measures. This reform has left largely unchanged the UK’s criminal regime for insider dealing and market manipulation, based respectively on Part V of the Criminal Justice Act 1993 and section 397 of FSMA 2000.Less
This chapter discusses the legal and regulatory framework dealing with market abuse in the UK. The UK’s market abuse regime has a dual nature and is based both on criminal law and regulatory prohibitions, which overlap to a considerable degree. The regulatory regime dealing with market abuse was introduced by the Financial Services and Markets Act 2000 (FSMA 2000), which provided for a regulatory offence of market abuse. FSMA 2000 came into effect on December 1, 2001; the FSMA 2000 market abuse regime was substantially remodelled in July 2005 following the adoption of the Treasury’s Market Abuse and Investment Recommendation (Media) Regulations and attendant changes to the FSA’s Handbook, which implemented in the UK the EC Market Abuse Directive and its Level 2 Implementing Measures. This reform has left largely unchanged the UK’s criminal regime for insider dealing and market manipulation, based respectively on Part V of the Criminal Justice Act 1993 and section 397 of FSMA 2000.
Jonathan Charkham and Anne Simpson
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198292142
- eISBN:
- 9780191684876
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292142.003.0004
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
This chapter discusses the role of regulation in corporate governance. The UK system has generally depended on a mixture of primary and secondary legislation with rules made by various non-statutory ...
More
This chapter discusses the role of regulation in corporate governance. The UK system has generally depended on a mixture of primary and secondary legislation with rules made by various non-statutory bodies, some of which may, like the Stock Exchange, work under the umbrella of some legislation, and some, like the Cadbury Committee, with no umbrella at all. The creation of the Financial Services Authority is surely helpful. The work of the takeover panel is makes for interesting analysis. It can change its rules without reference to any other authority and has no means of enforcing its rules beyond what supporters are willing to do. Yet UK shareholders have good cause to be grateful to it, because it has succeeded in ensuring relatively equal treatment between them. It has established the rules of conduct about the purchase of shares in the market and governs the timetable and what must and must not be said.Less
This chapter discusses the role of regulation in corporate governance. The UK system has generally depended on a mixture of primary and secondary legislation with rules made by various non-statutory bodies, some of which may, like the Stock Exchange, work under the umbrella of some legislation, and some, like the Cadbury Committee, with no umbrella at all. The creation of the Financial Services Authority is surely helpful. The work of the takeover panel is makes for interesting analysis. It can change its rules without reference to any other authority and has no means of enforcing its rules beyond what supporters are willing to do. Yet UK shareholders have good cause to be grateful to it, because it has succeeded in ensuring relatively equal treatment between them. It has established the rules of conduct about the purchase of shares in the market and governs the timetable and what must and must not be said.
Andrew Jones
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199580590
- eISBN:
- 9780191595257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199580590.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental, Public and Welfare
In the context of its emergence as one of the leading sectors in the UK economy, this chapter seeks to understand the relationship between the financial service sector and immigration. It does this ...
More
In the context of its emergence as one of the leading sectors in the UK economy, this chapter seeks to understand the relationship between the financial service sector and immigration. It does this by unpacking the specific nature of the industries covered within the sector and their need for migrant labour. An examination of the nature of employer demand in financial services is followed by an analysis of labour supply, along with the recruitment practices employed by firms in various sub‐sectors. The chapter then goes on to assess the implications of recent trends in this diverse sector for public policy on immigration, and points to national‐level regional variations and current trends. It ends by considering what options employers have in responding to staff shortages in financial services.Less
In the context of its emergence as one of the leading sectors in the UK economy, this chapter seeks to understand the relationship between the financial service sector and immigration. It does this by unpacking the specific nature of the industries covered within the sector and their need for migrant labour. An examination of the nature of employer demand in financial services is followed by an analysis of labour supply, along with the recruitment practices employed by firms in various sub‐sectors. The chapter then goes on to assess the implications of recent trends in this diverse sector for public policy on immigration, and points to national‐level regional variations and current trends. It ends by considering what options employers have in responding to staff shortages in financial services.
Markus Venzin
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780199535200
- eISBN:
- 9780191701153
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199535200.003.0009
- Subject:
- Business and Management, Finance, Accounting, and Banking, Strategy
This chapter explores how positional competitive advantages can lead to superior performance. It shows why profitability variance among financial services firms exists not only on an international ...
More
This chapter explores how positional competitive advantages can lead to superior performance. It shows why profitability variance among financial services firms exists not only on an international level but also on a national scale. Higher profitability depends on the ability of a financial services firm to understand the local market structure and develop positional advantages. Another avenue to higher profitability is to deploy superior resources and capabilities in the local market. A third common way to internationalize in a profitable way is to concentrate on a narrow industry segment (or client group) and leverage superior capabilities on a global scale. The chapter introduces and illustrates these concepts with two case examples — Allianz and HBOS — which demonstrate show how financial services firms can create unique strategic positions by developing differentiation and cost advantages as well as by focusing on well-defined target segments.Less
This chapter explores how positional competitive advantages can lead to superior performance. It shows why profitability variance among financial services firms exists not only on an international level but also on a national scale. Higher profitability depends on the ability of a financial services firm to understand the local market structure and develop positional advantages. Another avenue to higher profitability is to deploy superior resources and capabilities in the local market. A third common way to internationalize in a profitable way is to concentrate on a narrow industry segment (or client group) and leverage superior capabilities on a global scale. The chapter introduces and illustrates these concepts with two case examples — Allianz and HBOS — which demonstrate show how financial services firms can create unique strategic positions by developing differentiation and cost advantages as well as by focusing on well-defined target segments.
T.A. Bhavani and N.R. Bhanumurthy
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198076650
- eISBN:
- 9780199081868
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198076650.003.0005
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Chapter 5 focuses on the empirical analysis of financial access at the level of households. Initially, it presents evidence for the availability of financial services in the Indian villages. This is ...
More
Chapter 5 focuses on the empirical analysis of financial access at the level of households. Initially, it presents evidence for the availability of financial services in the Indian villages. This is followed by the analysis of evidence for financial access at household level in terms of having bank accounts and availing financial resources for business investment purpose. Empirical analysis indicates that many Indian villages had to have physical access to financial services and a large proportion of households had to have a bank account—a pre-requisite to avail financial services offered by banks. This was reflected in the smaller percentage of households that availed of loan from the formal financial system and their large financial resource gap. One finds wide variation across the states in these two aspects of financial access. The chapter concludes that there exists not only limited financial access but also unequal access across households.Less
Chapter 5 focuses on the empirical analysis of financial access at the level of households. Initially, it presents evidence for the availability of financial services in the Indian villages. This is followed by the analysis of evidence for financial access at household level in terms of having bank accounts and availing financial resources for business investment purpose. Empirical analysis indicates that many Indian villages had to have physical access to financial services and a large proportion of households had to have a bank account—a pre-requisite to avail financial services offered by banks. This was reflected in the smaller percentage of households that availed of loan from the formal financial system and their large financial resource gap. One finds wide variation across the states in these two aspects of financial access. The chapter concludes that there exists not only limited financial access but also unequal access across households.
Masahiko Aoki and Hugh Patrick (eds)
- Published in print:
- 1995
- Published Online:
- August 2004
- ISBN:
- 9780198288992
- eISBN:
- 9780191601224
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288999.001.0001
- Subject:
- Economics and Finance, Financial Economics, South and East Asia
This book is based on a collaborative project sponsored by the World Bank. Its purpose is to describe, analyse, and evaluate the Japanese main bank system, and examine its relevance as a model for ...
More
This book is based on a collaborative project sponsored by the World Bank. Its purpose is to describe, analyse, and evaluate the Japanese main bank system, and examine its relevance as a model for developing market economies and transforming social economies. It is divided into two parts: Part I, The Japanese Main Bank System, presents ten chapters that explore the development, functions, relationships and regulation of the main bank system; and Part II, The Comparative Context: Relevance for Developing and Transforming Economics, contains seven chapters that compare the Japanese main bank system with that of other Germany, Mexico, India, China, and Poland.Less
This book is based on a collaborative project sponsored by the World Bank. Its purpose is to describe, analyse, and evaluate the Japanese main bank system, and examine its relevance as a model for developing market economies and transforming social economies. It is divided into two parts: Part I, The Japanese Main Bank System, presents ten chapters that explore the development, functions, relationships and regulation of the main bank system; and Part II, The Comparative Context: Relevance for Developing and Transforming Economics, contains seven chapters that compare the Japanese main bank system with that of other Germany, Mexico, India, China, and Poland.
