Sistemas financieros comparados Leccion 2 SISTEMAS FINANCIEROS...Sistemas financieros comparados Afi...

Emilio [email protected]

www.afi.es

www.emilioontiveros.com

@ontiverosemilio

Octubre de 2019

Curso 2019-2020

Sistemas financieros comparados


Afi Escuela de Finanzas, 2019-2020. Todos los derechos reservados.

Objetivo de la lección:

Financial intermediaries and markets can alleviate market frictions through producing

information and risk sharing in different ways. In practice, the structure of financial

systems can be bank-based or market-based, varying across countries. The influence of

financial structure on economic growth is dependent on the overall development of the

real economy and institutions. The association is also different during crisis periods and

non-crisis periods. Market-based systems tend to have an advantage for financially

dependent industries in good times but are a disadvantage in bad times. The recent rapid

growth of shadow banking benefits economic growth but also poses additional risks to

the financial system and real economy.

Lectura básica:

Fuente: Franklin Allen, Xian Gu, Oskar Kowalewski (2017)



BANK VS. CAPITAL MARKET

What defines a bank traditionally?

Takes deposits (short-term obligations) and makes loans (long-term assets), both on balance sheet

What defines a capital market traditionally?

Purchase and sale of securities (equity or debt, stocks orbonds), traditionally through an underwriter (market risk, short-term on balance sheet) in primary market and through a broker(only settlement risk, effectively off balance sheet except forguaranty) in secondary market

Fuente: David K. Linnan (2002)



Bancos Vs. Mercados. Antecedentes:

Hamilton (1781): “banks are the happiest engines that ever were

invented” for spurring economic growth.”

Gerschenkron (1962) underlined the crucial role of universal banks in German

industrialization between the middle and end of the

nineteenth century.

Calomiris (1995) compared the American and German systems of investment between

1870 and 1914 and argued that the German system was

superior.

Kennedy (1987) claimed that the failure of British financial intermediaries to behave

as German universal banks did hamper British economic

performance in the late nineteenth and early twentieth centuries.

Bagehot (1873) and Hicks (1969) claimed that financial markets played an important role

in the UK’s Industrial Revolution.



Afi Escuela de Finanzas, 2019-2020. Todos los derechos reservados. 5

Caracterización de un Sistema Financiero. Fohlin (2015)

A financial system is the set of institutions and markets that gathers excess funds from

savers— whether households or businesses--and allocates financial capital to those with

entrepreneurs and others in need of credit. In the process, the financial system produces

information and distributes risk throughout the economy and among its participants.

Merton (1993) summarizes even more succinctly the primary function of any financial

system: “to facilitate the allocation and deployment of economic resources, both

spatially and temporally, in an uncertain environment.”

Well-functioning financial systems must provide several core functions (Merton, 1993;

Crane et al 1995):

- Clearing and settling payments

- Pooling or mobilizing resources

- Transferring economic resources, inter-temporally or geographically

- Managing risk

- Pricing information

- Dealing with information and incentive problems



Three of the key areas of research and debate revolve

around the following three topics:

1. The design of financial institutions and systems: Functional versus

institutional approaches

2. Why do financial systems differ across countries: legal origins versus political

and economic explanations

3. Does financial system design affect an economy’s long-run economic growth

rates?



In the literature, the classification of the financial system typically follows a binary approach (Fohlin,

2012). It often focuses on the dependence of savers and firms on banks or capital markets and

draws a distinction between countries with market- and bank-oriented systems.

a) Bank-oriented systems are those displaying high levels of bank finance, equity holding by

banks, long-term relationships, close monitoring and active corporate governance by banks.

Typically, bank-based financial systems correspond to countries in which commercial banks are

mainly universal.

b) Market-oriented financial systems support large, active securities markets, and firms use

market-based financing. In market-based financial systems, banks are very often specialized with an

important group being investment banks. This oversimplified characterization provides only a partial

picture of the financial system, so some authors classify the financial system as relationship-based

or arms-length systems, which captures the degree of separation between investor and firm

(Rajan and Zingales, 2002).

The rapid changes in the financial industry in recent decades have further complicated the

distinction. In reality, there is no clear-cut distinction between financial systems, and the

classifications fit only in a rough manner empirically




The literature usually associates bank-based financial systems with universal

banking and market-oriented systems with specialized banking.

The three-part financial system paradigm that aligns universal banking,

relationship banking, and bank-oriented financing on the one hand, and

specialized banking, arms-length lending, and market orientation on the

other.

Germany, with its dozen or more large-scale universal banks, offers the classic

example of universal banking (Fohlin, 2007), but most of continental Europe

followed a similar pattern. Universal banks had emerged in Belgium even earlier

and in France almost simultaneously. Universal banking spread to several other

European countries in the 1890s: Finland, Italy, Spain, Sweden, Ireland and

Switzerland. In Italy, the financial system remained compartmentalized until the

early 1890s, when it suffered a severe crisis and the failure of many banks.



1.- Elementos de comparación

Orientación a mercados o a intermediarios financieros

Mayor o menor participación pública

Mayor o menor propensión a innovar y financiar innovación

Costes de transacción

Exigencias informativas

Gobierno corporativo

Convergencia gradual



1.- Elementos de comparación

Overview of financial systems

Financial Markets:

Banks:

External Corporate

Governance:

Central Central Developed Fairly Unimportant

unimportant

Competitive concentrated

Hostile Hostile Main Hausbank

Takeovers takeovers bank system

system

United United

States Kingdom Japan France Germany



2.- Instituciones y mercados

Mercados financieros

Bolsas

Deuda Pública

Renta Fija Privada

Derivados

Sistema bancario

Inversión Institucional

Seguros

Pensiones



3.- El gobierno de las empresas

Corporación empresarial: conceptos y definiciones

Estructura de propiedad y control

Mecanismos de Gobierno

El cuestionamiento de los mismos a la luz de los escándalos

recientes

Formas especiales de corporación (entidades mutualistas; sin

ánimo de lucro, etc.): el caso de las cajas



4.- Las limitaciones de los mercados

Mercados eficientes en cuestión

Mercados incompletos

Conflictos de intereses entre grupos de accionistas

Asimetrías informativas y riesgo moral



Discusión

16

There is not such a thing as the “ideal” financial system

Banks based

– Pro: long-term relationship

– Con: possible misallocation in case of crisis (Rajan-Zingales)

Markets (arm-length)

– Pro: Public information through prices

– Con: Markets are not perfect



Discusión

Banks solve the free rider problem of atomistic market participants, as theyhave greater incentives to search for information on valuable projects

– If they don’t do it, nobody will do it

– They don’t have to display the information they collected, so they cantake advantage of this monoplistic position. By contrast, privateinformation collection by market participants is immediately revealed in the stock price

Takeovers are not always socially beneficial, as they may simply benefitthe raider



Discusión

Banks with close ties to their creditors may have too high an influence on them

– Banks can extract rents from firms because they have a lot of privateinformation

– In case of debt renegotiation or liquidity injection, banks have a lot of bargaining power and can extract more of the future profits of the firms

-> this may reduce the effort extended by firms to undertake innovativeventures

– Banks may be more risk averse and favor conservative and slow growth strategies

– Banks may not be effective gatherers of information in new and uncertain situations (think of venture capital)

– Main banks may exert influence over corporate decisions or fail to bankrupt distressed firms because of long run ties



Discusión

It does not matter whether finance comes from banks or markets

Bank and market-based finance are complementary:

– The availability of both systems may spur competition to provide

finance

– Each system may be more appropriate for a certain type of firms: e.g.

banks finance low-risk projects, markets high-risk ones



5.- Sistema financiero europeo



Ratio of bank credit to total private sector fundingIn per cent



Bank funding ratio1

In per cent



Percentage of the banking system that is foreign owned



DimensiónTotal loans to private sector and securities market capitalisation as a ratio of GDP



The relative importance of loans and securities



Referencias:

− Banco Mundial. Blog: All about finance: http://blogs.worldbank.org/allaboutfinance/

− Allan, F. –Gale, D., Comparing Financial Systems, MIT Press, Cambridge (Mass), 2000

− Banco Central Europeo: Financial stability Review, semestral,

https://www.ecb.europa.eu/pub/fsr/html/index.en.html

− Barth, James R., Caprio, Gerard y Levine, Jr., Ross. NBER working paper series. BANK REGULATION AND

SUPERVISION IN 180 COUNTRIES FROM 1999 TO 2011. Working Paper 18733

http://www.nber.org/papers/w18733 National Bureau of Economic Research

− Beck, Thorsten y Feyen, Erik. Benchmarking Financial Systems. Introducing the Financial Possibility Frontier

The World Bank, Development Economics, Office of the Senior Vice President and Chief Economist. September

2013

− Berges, Angel, Ontiveros, Emilio y Valero, Francisco José. La Unión Bancaria desde una perspectiva española.

Fundación Alternativas y Fundación ICO. Documento de trabajo Opex nº 71/2012. Enero 2013

− Berges, Angel, Ontiveros, Emilio y Valero, Francisco José. La Unión Bancaria: avances e incertidumbres para el

año 2014. Fundación Alternativas. Documento de trabajo Opex nº 75/2014. Enero 2014

http://blogs.worldbank.org/allaboutfinance/

https://www.ecb.europa.eu/pub/fsr/html/index.en.html

http://www.nber.org/papers/w18733

http://www.falternativas.org/opex/documentos/documentos-de-trabajo/la-union-bancaria-desde-una-perspectiva-espanola

http://www.falternativas.org/opex/documentos/documentos-de-trabajo/la-union-bancaria-avances-e-incertidumbres-para-el-ano-2014



Referencias:

− Berges, Angel y Ontiveros, Emilio. Financiación de la economía. Bancarización frente a mercados. Un nuevo

modelo económico para España. Mediterráneo económico nº 25. Colección Estudios Socioeconómicos. Fundación

Cajamar. Mayo 2014

− Bernanke, Ben (sesiones): http://www.federalreserve.gov/newsevents/lectures/about.htm

− Čihák, Martin, Demirgüč-Kunt, Asli, Feyen, Erik y Levine, Ross. Financial Development in 205 Economies, 1960 TO

2010. Working Paper 18946 http://www.nber.org/papers/w18946 National Bureau of Economic Research

− Demirguc-Kunt, Asli, Feyen, Erik y Levine, Ross “The evolving importance of banks and securities markets”

(NBER Working Paper Series. Working paper 18004) http://www.nber.org/papers/w18004. National Bureau of

Economic Researh

− Demirgüç-Kunt, A. –Levine, Ross, Financial Structure and Economic Growth. A Cross-Country Comparison of

Banks, Markets and Development, Cambridge (Mass), The MIT Press, 2001.

− Easterly, William y Levine, Ross, 2012 “The European origins of economic development” (NBER Working Paper

Series. Working paper 18162) http://www.nber.org/papers/w18162. National Bureau of Economic Researh

http://www.afi.es/EO/notaprensa20140529a.pdf

http://www.federalreserve.gov/newsevents/lectures/about.htm


http://www.afi.es/EO/Derminguc-Kunt The evolving.pdf


https://mitpress.mit.edu/books/financial-structure-and-economic-growth

http://www.afi.es/EO/Levine NBER 18162.pdf




Referencias:

− Fohlin, Caroline (2015) “Financial Systems and Economic Development in Historical

Perspective,” Forthcoming (2015) in Claude Diebolt and Michael Haupert (Eds.), Handbook

of Cliometrics, Springer Verlag. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2524109

− Fundación Estudios Bursátiles “Finance Glossary” Bancaja, IVF, Fundación de Estudios

Bursátiles y Financieros, Thomson Reuters

− Levine, Ross, 2004 “Finance and Growth: Theory and Evidence” (NBER Working Paper

Series. Working paper 10766) http://www.nber.org/papers/w10766. National Bureau of

Economic Researh

−

− Levine, Ross, 2004. “Bank-based or market-based financial systems: Which is better?”.

Journal of Financial Intermediation 11, 398-428.

- Merton, Robert C. y Bodie, Zvi ,2005 “Design of financial systems: towards a synthesis of

function and structure” Journal of Investment Management. Vol. 3. Nº 1 pp.1-23

- Merton, R. –Bodie, Z., A Conceptual Framework for Analyzing the Financial Environment,

Harvard University Press, 1995

http://www.afi.es/EO/Financial Systems ans Economic develpment.pdf

http://www.afi.es/EO/232 Libro Finance Glossary.pdf

http://www.afi.es/EO/w10766.pdf


http://www.afi.es/EO/w9138.pdf

http://www.people.hbs.edu/rmerton/Designpaperfinal.pdf

http://www.people.hbs.edu/rmerton/Conceptual Framework.pdf



Referencias:

- Ontiveros, Emilio, 2013 «Bancarización declinante”, Blog Finanzas a las nueve, El País,

20 de junio

- Rajan, R. –Zingales, L., Banks and Markets: The Changing Character of European Finance,

CRSP Working Paper No. 546 january 2003. Available at SSRN:

http://ssrn.com/abstract=389100

- World Economic Forum “The Financial Development Report”, 2012

- Wray, L.R, Financial Markets Meltdown. What Can We Learn from Minsky?, The Levy

Economic Institute, 2008

http://blogs.elpais.com/finanzas-a-las-9/2013/06/bancarizaci%C3%B3n-declinante.html

http://ssrn.com/abstract=389100

http://www3.weforum.org/docs/WEF_FinancialDevelopmentReport_2012.pdf

http://www.levyinstitute.org/pubs/hili_94a.pdf

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