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FinWatcher in brief


       Posted on January 13th, 2013

Banking Union for Europe: Risks and Challenges

While a banking union for Europe has been discussed by economists since even before the 2007 crisis, the issue has now moved up to the top of the eurozone agenda. But what kind of banking union? For whom? Financed how? And managed by whom? These questions are explored in a new Vox eBook [...]


       Posted on January 13th, 2013

High-Frequency Trading and the Execution Costs of Institutional Investors

This paper studies whether high-frequency trading (HFT) increases the execution costs of institutional investors. We use technology upgrades that lower the latency of the London Stock Exchange to obtain variation in the level of HFT over time. Following upgrades, the level of HFT increases. Around these shocks to HFT, as far as can [...]


       Posted on January 13th, 2013

The New Debit Card Regulations: Initial Effects on Networks and Banks

American consumers are using debit cards more than ever before, triggering key changes in the payment card industry and affecting how banks and merchants do business.

Controversy has arisen as the industry raised the fees it charges on merchants for debit transaction processing—fees that merchants may pass on to consumers, affecting the [...]


       Posted on January 9th, 2013

IT in banks: What does it cost?

Highlights:

Financial services firms will spend between USD 270 billion and USD 460 billion on IT in 2013 globally. IT cost figures in banking are estimates and differ substantially between different sources.
Measured as a percentage of revenues, financial services firms spend more on IT than any other industry. Banks’ IT costs equal 7.3% of their revenues, [...]


       Posted on January 9th, 2013

Revisions to the Basel Securitisation Framework – BCBS Consultative Document

The performance of securitisation exposures and the central role they played during the recent financial crisis were a key motivation for the Basel Committee to perform a broader review of its securitisation framework for regulatory capital requirements. The Committee’s objectives are to make capital requirements more prudent and risk-sensitive; to mitigate mechanistic reliance [...]


518 pages