The Research Summaries in the March 2013 Research Bulletin discuss "Trade Finance and Its Role in the Great Trade Collapse" (JaeBin Ahn) and "Sovereign Debt: How to Track Who Is Buying and Selling It" (Serkan Arslanalp and Takahiro Tsuda). The Q&A looks at "Seven Questions on the Implications of Global Supply Chains for Real Effective Exchange Rates" (Rudolfs Bems). Readers can also find in this issue a listing of recent IMF Working Papers, Staff Discussion Notes, and Recommended Readings from IMF Publications. The Bulletin also includes a call for papers for a research conference and information on free access to the IMF Economic Review in April.
This Selected Issues and Analytical Note on Finland discusses the potential spillovers to Finland from various shocks associated with cross-country interlinkages. The note provides an overview of the trade and financial linkages, assesses the impact of global fiscal consolidation on Finland via trade links, quantifies dynamic contributions from external sources to growth, and uses these contributions to forecast the potential loss to Finnish GDP from a growth slowdown in other European countries; and analyzes the potential impact from the banking sector or sovereign stress.
This technical note analyzes the competition in the banking sector in Denmark. It reveals that Denmark has a fairly competitive and efficient banking sector. Measured by various indicators, efficiency of banking intermediation has been improving in recent years. The banking sector has become concentrated, and profitability of banks is relatively high and growing. The Danish Bankers Association and the Danish Consumers Association, in collaboration with the Danish Financial Supervisory Authority, should continue efforts to promote the transparency of pricing and quality of different products and services offered by banks.
Mr. Thorvardur Tjoervi Olafsson and Ms. Julia Majaha-Jartby
The paper's central theme is that where a financial crisis emerges, regional supervisors should have systems in place to effectively respond to their country-specific crises and-in the case of foreign operations and financial conglomerates-to collaborate comprehensively with other supervisory agencies and respective ministries to avert a regional crisis or address the immediate crisis at hand. For financial institutions to expand across borders without undermining regional and global financial stability, supervisory agencies must develop the capacity to collaboratively and collectively handle crises.
This study examines the banking crises in Finland, Norway and Sweden, which took place in the early 1990s, and draws some policy conclusions from their experiences. One key conclusion is that factors in addition to business cycle effects explain the Nordic countries financial problems. Although the timing of the deregulation in all three countries coincided with a strongly expansionary macroeconomic momentum, the main reasons for the banking crises were the delayed policy responses, the structural characteristics of the financial systems, and the banks inadequate internal risk-management controls.
This book is intended to provide the user of debt statistics with a comparative description fo the statistics collected by the Bank for International Settlements, the International Monetary Fund, the Organization for Economic Cooperation and Development, and the World Bank. It discusses how these statistics are gathered, why they take the form they do, and how they relate to each other.
The first consideration in formulating a definition of countries’ external debt is that it should respect the requirements of a wide range of users. Major users include: banks and export credit guarantee agencies for their work on risk analysis; officials involved in international financial co-operation, especially those concerned with the negotiation of debt agreements; and economic analysts in general. These and other potential users must find statistics derived from the definition relevant and realistic.
The core definition represents an agreed view of the essential elements in the definition of external debt. Especially in the case of systems focusing on a particular sector, it provides criteria for the inclusion or exclusion of various types of financial instrument. It also provides a yardstick facilitating comparison of the practices of individual organisations.
While the establishment of the core definition of external debt and the improvement in the quality of published data represent substantial achievements, much remains to be done in refining concepts, achieving greater concordance among the reporting systems and improving the reliability of the data collected and published.
The Bank for International Settlements (BIS) is the world’s oldest international financial institution, having been established in May 1930, following the Hague Conference in January of that year. The main role of the BIS is to promote co-operation among central banks. In this capacity it carries out four main functions: a) it acts as a “central banks’ bank” in the sense that it holds and manages deposits from a large number of central banks throughout the world; b) it serves as a focal point for international monetary co-operation; c) it assists as Agent or Trustee in the execution of certain international financial agreements; and d) it carries out research and issues publications on monetary and economic subjects.