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149 results found

Report

Competition in financial services

In the financial services sector, the failure of a single institution can have a compounding effect on the sector, and on national and global economies. In particular, there is systemic risk from inter-institution lending, and this effect is more complex in Australia due to the...
Working paper

Balancing competition and stability in Australian retail banking

The Australian Government initiated two major reviews in 2014: the Financial System Inquiry and the Competition Policy Review. These have highlighted policy trade-off between competition and financial stability. Since the global financial crisis, policymakers and economic researchers internationally have highlighted the need for prudential regulation...
Working paper

Banks non-interest income and global financial stability

Depositary institutions over the last 15 years have increased the share of non-traditional revenue in total income.While the change in business models is a global phenomenon, it is more pronounced in countries such as the U.S., France and the U.K. In this study, we examine...
Working paper

Benefits (and pitfalls) of long-term investing

Three key advantages held by long-term investors include: the capacity to adopt positions where payoff timing is uncertain; the ability to exploit opportunities generated by the actions of short-term investors; and latitude to invest in unlisted and/or illiquid assets. These advantages provide access to a...
Article

Building consumer demand for digital financial services – The new regulatory frontier

Digital Financial Services (DFS) are held out as key financial solutions for improving financial inclusion. However, targeted end-users often offer little in the way of obvious profitable opportunities and so market forces alone are not enough to ensure the supply of services and products which...
Working paper

China: investing in the world

It is clear that China has emerged as a key investment actor in the current global milieu. What is not so clear is why this is so. This paper adds an historical perspective to the state capital story by examining China’s trade and investment patterns...
Working paper

Commonality in liquidity

Following previous research which established that liquidity commonality exists within one stock market over a short period of time, this paper finds that liquidity commonality also exists globally. Utilising a large number of stock exchanges and a twelve year research timeframe, this paper observes that...
Working paper

Competition in Australian retail banking: how much is enough and options to facilitate more

In a retail banking sector characterised by both high concentration and low consumer switching, questions arise for Australian policy makers and regulators as to the effectiveness of competition as one important means by which economic outcomes are engendered, including innovation beneficial to consumers and consumer...
Working paper

Connecting the dots: econometric methods for uncovering networks with an application to the Australian financial institution

This paper connects variance-covariance estimation methods, Gaussian graphical models, and the growing literature on economic and nancial networks. We construct the network using the concept of partial correlations which captures direct linear dependence between any two entities, conditional on dependence between all other entities. We...
Working paper

The costs and benefits of financial regulation: A financial CGE assessment of the impact of a rise in commercial bank capital adequacy ratios

Financial regulators in Australia and overseas are requiring banks to raise additional capital. The benefits of this are understood in terms of reducing the risk of incurring the significant costs of another financial crisis. But there are potential costs from securing these benefits, in the...