Publications
123 results found
Allen HF, Qian J, Gu X, 2017, An overview of China's financial system, Annual Review of Financial Economics, ISSN: 1941-1375
We provide a review of China’s financial system and consider challenges it faces and further reforms in the future. The formal sectors of the financial system, which includes a fast-growing stock market and is dominated by a banking sector with large state-owned banks, have played a critical role in financing the state sectors and the investment-driven economic growth model. However, the formal sectors have not served the needs of the private sectors or households; these dynamic sectors have been financed by alternative finance sectors operating largely outside the markets and formal institutions. Going forward, financial markets need to be further developed to provide more support for the private sectors, including technology and services industries; the formal and alternative sectors should work together to improve the efficiency of resource allocation to better support the new model of consumption- and innovation-driven growth. Finally, the financial system needs to reduce the likelihood of damaging financial crises, which have included a real estate crisis, a banking crisis triggered by defaults on corporate and local government debt, and a twin crisis in the currency market and the banking sector.
Allen F, Edmans A, 2017, Editorial, Review of Finance, Vol: 21, Pages: 1-6, ISSN: 1382-6662
Allen F, Demirguc-Kunt A, Klapper L, et al., 2016, The foundations of financial inclusion: understanding ownership and use of formal accounts, Journal of Financial Intermediation, Vol: 27, Pages: 1-30, ISSN: 1042-9573
Financial inclusion—defined as the use of formal accounts—can bring many benefits to individuals. Yet, we know very little about the factors underpinning it. This paper explores the individual and country characteristics associated with financial inclusion and the policies that are effective among those most likely to be excluded: poor, rural, female or young individuals. Overall, we find that greater financial inclusion is associated with lower account costs, greater proximity to financial intermediaries, stronger legal rights, and more politically stable environments. However, the effectiveness of policies to promote inclusion varies depending on the characteristics of the individuals considered.
Allen HF, Goldstein I, Jagtiani J, et al., 2016, Enhancing Prudential Standards in Financial Regulations, Journal of Financial Services Research, Vol: 49, Pages: 133-149, ISSN: 1573-0735
The financial crisis has generated fundamental reforms in the financial regulatory system in the U.S. and internationally. Much of this reform was in direct response to the weaknesses revealed in the precrisis system. The new “macroprudential” approach to financial regulations focuses on risks arising in financial markets broadly, as well as the potential impact on the financial system that may arise from financial distress at systemically important financial institutions. Systemic risk is the key factor in financial stability, but our current understanding of systemic risk is rather limited. While the goal of using regulation to maintain financial stability is clear, it is not obvious how to design an effective regulatory framework that achieves the financial stability objective while also promoting financial innovations. This paper discusses academic research and expert opinions on this vital subject of financial stability and regulatory reforms. Specifically, among other issues, it discusses the impact of increasing public disclosure of supervisory information, the effectiveness of bank stress testing as a tool to enhance financial stability, whether the financial crisis was caused by too big to fail (TBTF), and whether the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) resolution regime would be effective in achieving financial stability and ending TBTF.
Allen HF, Brealey R, Myers S, 2016, Principles of Corporate Finance, Publisher: McGraw-Hill Higher Education
Allen F, Carletti E, Gray J, et al., 2016, Filling the Gaps in Governance The Case of Europe, ISBN: 9789290844150
The conference consisted of three panel sessions, one keynote lecture and one dinner speech. Opening the event, organizers highlighted that the agenda for this sixth annual conference showed some continuity with the previous ones.
Allen F, Carletti E, Marquez R, 2015, Deposits and bank capital structure, Journal of Financial Economics, Vol: 118, Pages: 601-619, ISSN: 0304-405X
In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce bankruptcy costs, but there is a role for capital regulation when deposits are insured. Banks could no longer use capital when they lend to firms instead of investing directly in risky assets. This depends on whether the firms are public and compete with banks for equity capital or are private with exogenous amounts of capital.
Allen F, Jackowicz K, Kowalewski O, et al., 2015, Bank lending, crises, and changing ownership structure in Central and Eastern European countries, Journal of Corporate Finance, Vol: 42, Pages: 494-515, ISSN: 0929-1199
We examine the interactions of bank lending dynamics, ownership structures, and crisis phenomena in the banking systems of Central and Eastern European (CEE) countries. Using a panel dataset of more than 400 banks for the period from 1994–2010, we show that the impact of ownership structure on a bank’s lending activities in CEE countries was conditional upon the type of crisis, namely, whether it was a host, home, global, or simultaneous crisis. In contrast, our evidence indicates that bank-specific characteristics, such as deposit growth and profitability ratios, are significant determinants of credit growth during both normal economic times and crisis periods, regardless of the crisis type. Moreover, we provide indirect evidence of the benefits of banking sector diversification dependent upon the criterion of parent banks’ country of origin.
Allen F, Carletti E, Marquez R, 2015, Stakeholder Governance, Competition, and Firm Value*, Review of Finance, Vol: 19, Pages: 1315-1346, ISSN: 1572-3097
Allen HF, Goldstein I, Jagtiani J, et al., 2015, Enhancing Prudential Standards in Financial Regulations
Allen F, Carletti E, Goldstein I, et al., 2015, Moral Hazard and Government Guarantees in the Banking Industry, Journal of Financial Regulation, Vol: 1, Pages: 30-50, ISSN: 2053-4833
The massive use of public funds in the financial sector and the large costs for taxpayers are often used to justify the idea that public intervention should be limited. This conclusion is based on the idea that government guarantees always induce financial institutions to take excessive risk. In this article, we challenge this conventional view and argue that it relies on some specific assumptions made in the existing literature on government guarantees and on a number of modelling choices. We review the theory of government guarantees by highlighting and discussing the role that these underlying assumptions play in the assessment of the desirability and effectiveness of government guarantees and propose a new framework for thinking about them.
Allen F, Carletti E, 2015, Systemic risk and macroprudential regulation, RISK AND EU LAW, Editors: Micklitz, Tridimas, Publisher: EDWARD ELGAR PUBLISHING LTD, Pages: 197-219, ISBN: 978-1-78347-093-8
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- Citations: 1
Allen HF, Carletti E, Cull R, et al., 2015, Resolving the African Financial Development Gap: Cross-Country Comparisons and a Within-Country Study of Kenya, African Successes: Modernization and Development, ISBN: 9780226315690
Acharya VV, Laffan B, 2015, The New Financial Architecture in the Eurozone, ISBN: 9789290842965
The logic, features and future shape of the new financial architecture of the Eurozone were discussed under Chatham House Rules on the occasion of a high-level conference hosted in Florence on 23 April 2015, by the European University ...
Allen HF, Goldstein I, Jagtiani J, et al., 2014, Enhancing Prudential Standards in Financial Regulations, Publisher: FRB of Philadelphia
Allen F, Hryckiewicz A, Kowalewski O, et al., 2014, Transmission of financial shocks in loan and deposit markets: Role of interbank borrowing and market monitoring, JOURNAL OF FINANCIAL STABILITY, Vol: 15, Pages: 112-126, ISSN: 1572-3089
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- Citations: 46
Allen F, Carletti E, Cull R, et al., 2014, The African Financial Development and Financial Inclusion Gaps, JOURNAL OF AFRICAN ECONOMIES, Vol: 23, Pages: 614-642, ISSN: 0963-8024
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- Citations: 117
Allen HF, Carletti E, Qian J, et al., 2014, Does Finance Accelerate or Retard Growth? Theory and Evidence, Towards a Better Global Economy Policy Implications for Citizens Worldwide in the Twenty-first Century, Publisher: Oxford University Press, USA, ISBN: 9780198723455
The prospects for the global economy would become much less favorable if today's emerging economies, particularly China, were to experience a significant slowdown in their pace of growth, as they currently account for 75–80 percent of the ...
Allen F, Qian JQ, 2014, China's Financial System and the Law, CORNELL INTERNATIONAL LAW JOURNAL, Vol: 47, Pages: 499-553, ISSN: 0010-8812
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- Citations: 13
Allen F, Carletti E, Gale D, 2014, Money, financial stability and efficiency, Journal of Economic Theory, Vol: 149, Pages: 100-127, ISSN: 0022-0531
Most analyses of banking crises assume that banks use real contracts but in practice contracts are nominal. We consider a standard banking model with aggregate return risk, aggregate liquidity risk and idiosyncratic liquidity shocks. With non-contingent nominal deposit contracts, a decentralized banking system can achieve the first-best efficient allocation if the central bank accommodates the demands of the private sector for fiat money. Price level variations allow full sharing of aggregate risks. An interbank market allows the sharing of idiosyncratic liquidity risk. In contrast, idiosyncratic (bank-specific) return risks cannot be shared using monetary policy alone as real transfers are needed.
Allen F, Vayanos D, Vives X, 2014, Introduction to financial economics, Journal of Economic Theory, Vol: 149, Pages: 1-14, ISSN: 0022-0531
Allen F, Qian JQ, Shan SC, et al., 2014, The IPO of Industrial and Commercial Bank of China and the 'Chinese Model' of privatizing large financial institutions, EUROPEAN JOURNAL OF FINANCE, Vol: 20, Pages: 599-624, ISSN: 1351-847X
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- Citations: 17
Allen HF, Barth R, Yago G, 2013, Restructuring in the US Housing Market, Financial Restructuring to Sustain Recovery, Publisher: Brookings Institution Press, ISBN: 9780815725251
... critical articles, or reviews. Financial Restructuring to Sustain Recovery may be ordered from: Brookings institution Press, 1775 Massachusetts avenue, n.W. Washington, D.c. 20036 telephone: 1-800/537-5487 or 410/516-6956 e-mail: ...
Allen F, Carletti E, 2013, What Is Systemic Risk?, JOURNAL OF MONEY CREDIT AND BANKING, Vol: 45, Pages: 121-127, ISSN: 0022-2879
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- Citations: 54
Allen F, Gu X, Kowalewski O, 2013, CORPORATE GOVERNANCE AND INTRA-GROUP TRANSACTIONS IN EUROPEAN BANK HOLDING COMPANIES DURING THE CRISIS, GLOBAL BANKING, FINANCIAL MARKETS AND CRISES, Editors: Jeon, Olivero, Publisher: EMERALD GROUP PUBLISHING LTD, Pages: 365-431, ISBN: 978-1-78350-170-0
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- Citations: 13
Allen F, Carletti E, 2013, Systemic risk from real estate and macro-prudential regulation, International Journal of Banking, Accounting and Finance, Vol: 5, Pages: 28-28, ISSN: 1755-3830
Allen HF, Qian J, Zhang C, et al., 2012, China's Financial System: Opportunities and Challenge, Capitalizing China, Publisher: University of Chicago Press, ISBN: 9780226237244
“How High is Urban Unemployment in China?” Journal of Chinese Economic and Business Studies 4 (2): 91–107. Kraay, Aart. 2000. “Household Saving in China.” World Bank Economic Review 14 (3): 545–70. Kuijs, Louis. 2005. “Investment ...
Allen F, Gu X, Kowalewski O, 2012, Financial crisis, structure and reform, JOURNAL OF BANKING & FINANCE, Vol: 36, Pages: 2960-2973, ISSN: 0378-4266
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- Citations: 35
Allen F, 2012, Trends in Financial Innovation and their Welfare Impact: an Overview, EUROPEAN FINANCIAL MANAGEMENT, Vol: 18, Pages: 493-514, ISSN: 1354-7798
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- Citations: 37
Allen F, Chakrabarti R, De S, et al., 2012, Financing firms in India, JOURNAL OF FINANCIAL INTERMEDIATION, Vol: 21, Pages: 409-445, ISSN: 1042-9573
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- Citations: 113
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