Banking and Capital Markets

"Many financial economists have tried to understand Why markets have performed so badly and traditional financial policies have been so ineffectual in preventing and attenuating the current crisis. This is a timely volume written by an Internationally diverse group of economists. Its focus is on banking and international finance, corporate finance and investments with a wide range of institutional perspectives and diversity of data. The book emphasizes how the particulars of asyrnmetric information can create moral hazard and adverse selection problems that can undermine the efficiency of Markets and financial policy, and makes the case for factoring such considerations into any models that are intended to guide policy."-Richard J. Herring, Jacob Safra Professor of International Banking Co-Director of the Whsrton Financial Institutions Center The Wharton School, University of Pennsylvania

"This book is a unique collection of articles about the current financial crises from a global perspective, rather then evaluating selected aspects of it from a Strictly U.S. point of view. It is written for readers who are familiar with financial concepts such as asymmetric information, corporate governance, leveraged buyouts, and value-at-risk."-Benton E. Gun, PhD, Chair of Banking, University of Alabama

This timely collection of papers probes into the major issues that are at the heart of our current financial market crises. The coverage of banking topics include the changing nature of intra and inter-bank markets, bank lending behavior, risk and risk-taking, the role of liquidity, return and maturity transformation issues. Issues on international financial market volatility and spillover effects are analyzed in detail, and intense discussions on capital adequacy and regulation in banking, and the potential role of banks' activities in the triggering of financial crises provide forward-looking insights.

This volume will offer readers current and innovative approaches to assessing extant issues in banking and financial markets. In particular, it provides new ideas about the role of corporate governance institutions as signaling devices in exercising regulatory authority and protection of the shareholders' rights. What this volume covers in breadth, it also delves in depth with critical analyses and commentaries on the possible role of bank lending in triggering international crises, value creation in international joint ventures and the pricing of risk in international financial markets.