TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 16 - Ritter, Silber, Udell

Chapter 16 - Financial system design. In this chapter you will learn to analyze the stockholder-lender and manager-stockholder conflicts; understand the different financial structures that limit these conflicts; compare and contrast the financial system design of Germany, Japan, the United Kingdom, and the United States. | Chapter 16 Financial System Design Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • Analyze the stockholder-lender and managerstockholder conflicts • Understand the different financial structures that limit these conflicts • Compare and contrast the financial system design of Germany, Japan, the United Kingdom, and the United States Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 16-2 Introduction • As Eastern European countries adopt capitalism, they are faced with task of designing a financial system • Two models in industrialized nations are: – Markets-oriented—United States and United Kingdom – Banking-oriented—Germany and Japan • Chapter examines/contrasts the two models • Ends with observations/recommendations for emerging capitalistic countries Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 16-3 1 Information and System Design • All financial systems have things in common – Payments system—processing of checks and electronic transfers – Specialized Financial Intermediaries — organizations or activities designed to perform specific functions within the financial system – Deposit Insurance—protecting individual depositor – Central Bank—responsible for issuing currency and implementing monetary policy Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 16-4 Information and System Design (Cont.) • However, there are significant differences – Primarily related to how businesses obtain financing – The private ownership of business leads to two fundamental problems that are handled differently by the financial sectors in the various systems • Both are based on the issue of asymmetric information • Stockholder-lender conflict • Management-stockholder conflict Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 16-5 Information and System Design (Cont.) • Stockholder-Lender Conflict – Adverse selection—firm owners (stockholders) have an incentive to understate their .

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Financial system design
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation