Financial Innovation in Retail and Corporate Banking PDF
Preview Financial Innovation in Retail and Corporate Banking
Financial Innovation in Retail and Corporate Banking http://avaxhome.ws/blogs/ChrisRedfield NEW HORIZONS IN MONEY AND FINANCE Series Editor: Mervyn K. Lewis, University of South Australia This important series is designed to make a signifi cant contribution to the shaping and development of thinking in fi nance. The series will provide an invaluable forum for the publication of high quality works of scholarship on a breadth of topics ranging from fi nancial markets and fi nancial systems to monetary policy and banking reform, and will show the diversity of theory, issues and practices. The focus of the series is on the development and application of new original ideas in fi nance. Rigorous and often path-breaking in its approach, it will pay particular attention to the international and comparative dimension of fi nance and will include innovative theoretical and empirical work from both well-established authors and the new generation of scholars. Titles in the series include: Banking Reforms in South-East Europe Edited by Zeljko Sevic Russian Banking Evolution, Problems and Prospects Edited by David Lane Currency Crises A Theoretical and Empirical Perspective André Fourçans and Raphaël Franck East Asia’s Monetary Future Integration in the Global Economy Suthiphand Chirathivat, Emil-Maria Claassen and Jürgen Schroeder Reforming China’s State-Owned Enterprises and Banks Becky Chiu and Mervyn K. Lewis Financial Innovation in Retail and Corporate Banking Edited by Luisa Anderloni, David T. Llewellyn and Reinhard H. Schmidt An Islamic Perspective on Governance Zafar Iqbal and Mervyn K. Lewis Financial Innovation in Retail and Corporate Banking Edited by Luisa Anderloni Professor of Banking and Finance, Department of Economics, Business and Statistics, University of Milan; Researcher, Carefi n, Bocconi University, Milan, Italy David T. Llewellyn Professor of Money and Banking, Department of Economics, Loughborough University, UK; Visiting Professor, CASS Business School, London, UK, Vienna University of Economics and Business Administration, Austria, and Swiss Finance Institute, Zurich, Switzerland Reinhard H. Schmidt Professor of International Banking and Finance, Department of Finance, Goethe University, Frankfurt am Main, Germany NEW HORIZONS IN MONEY AND FINANCE Edward Elgar Cheltenham, UK • Northampton, MA, USA © Luisa Anderloni, David T. Llewellyn and Reinhard H. Schmidt 2009 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2008943834 ISBN 978 1 84844 040 1 Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall L N Contents List of contributors vi Acknowledgements viii Preface Paolo Mottura ix 1 Financial innovation and the economics of banking and the fi nancial system 1 David T. Llewellyn 2 Is fi nancial innovation still a relevant issue? 41 Luisa Anderloni and Paola Bongini 3 Microfi nance, innovations and commercialisation 63 Reinhard H. Schmidt 4 Technological innovation in banking: the shift to ATMs and implicit pricing of network convenience 89 Santiago Carbó Valverde and David B. Humphrey 5 Financial innovation in internet banking: a comparative analysis 111 Francesca Arnaboldi and Peter Claeys 6 How do internet payments challenge the retail payment industry? 146 David Bounie and Pierre Gazé 7 Intellectual property rights and standard setting in fi nancial services: the case of the Single European Payments Area 170 Robert M. Hunt, Samuli Simojoki and Tuomas Takalo 8 The regulatory and market developments of covered bonds in Europe 199 Giuseppina Chesini and Monica Tamisari 9 Credit derivatives versus loan sales: evidence from the European banking market 224 Mascia Bedendo and Brunella Bruno 10 On the required regulatory support for credit derivative markets 250 Rym Ayadi and Patrick Behr 11 Innovation in trading activity: should stock markets be more transparent? 282 Caterina Lucarelli, Camilla Mazzoli and Merlin Rothfeld Index 327 v Contributors Luisa Anderloni Professor of Banking and Finance, Department of Economics, Business and Statistics, University of Milan, Milan; Researcher, Carefi n, Bocconi University, Milan, Italy. Francesca Arnaboldi Assistant Professor, Department of Economics, University of Milan, Milan, Italy. Rym Ayadi Senior Research Fellow and Head of Financial Institutions and Prudential Policy Unit, Centre for European Policy Studies (CEPS), Brussels, Belgium. Mascia Bedendo Assistant Professor, Department of Finance, Bocconi University, Milan, Italy. Patrick Behr Assistant Professor, Department of Finance, Goethe University, Frankfurt am Main, Germany. Paola Bongini Associate Professor, Department of Business and Economic Sciences, University of Milan – Bicocca, Milan, Italy. David Bounie Assistant Professor, École Nationale Supérieure des Télécommunications, Département Sciences Économiques et Sociales, Paris, France. Brunella Bruno Assistant Professor, Department of Finance, Bocconi University, Milan, Italy. Santiago Carbó Valverde Professor of Economics, Department of Economic Theory and History, Facultad de Ciencias Economicas y Empresariales, Universidad de Granada, Granada, Spain. Giuseppina Chesini Associate Professor, Department of Business Studies, University of Verona, Verona, Italy. Peter Claeys Grup AQR IREA, Facultat de Ciències Econòmiques I Empresarials Universitat de Barcelona, Barcelona, Spain; Marie Curie Intra-European Fellow. Pierre Gazé Assistant Professor, University of Orléans, Laboratoire d’Économie d’Orléans, Orléans, France. vi Contributors vii David B. Humphrey Professor, Department of Finance, Florida State University, Tallahassee, Florida, USA. Robert M. Hunt Senior Economist, Research Department, Federal Reserve Bank of Philadelphia, Philadelphia, USA. David T. Llewellyn Professor of Money and Banking, Department of Economics, Loughborough University, Loughborough, UK; Visiting Professor, CASS Business School, London, UK, Vienna University of Economics and Business Administration, Austria, and Swiss Finance Institute, Zurich, Switzerland. Caterina Lucarelli Associate Professor, Department of Economics, University Politecnica delle Marche, Ancona, Italy. Camilla Mazzoli Assistant Professor, Department of Economics, University Politecnica delle Marche, Ancona, Italy. Paolo Mottura Professor of Financial Markets and Institutions, Department of Finance, Bocconi University, Milan, Italy; Carefi n, Bocconi University, Milan, Italy. Merlin Rothfeld On Line Trading Academy, Irvine, California, USA. Reinhard H. Schmidt Professor of International Banking and Finance, Department of Finance, Goethe University, Frankfurt am Main, Germany. Samuli Simojoki Attorneys at Law Borenius & Kemppinen Ltd, Helsinki, Finland. Tuomas Takalo Research Supervisor, Monetary Policy and Research Department, Bank of Finland, Helsinki, Finland; Professor of Economics, School of Business and Economics, University of Jyväskylä, Finland. Monica Tamisari Senior Covered Bond Analyst, Cassa depositi e prestiti S.p.A., Rome, Italy. Acknowledgements The authors wish to thank anonymous referees. The research project has been promoted by Carefi n – Centre for Applied Research in Finance – Bocconi University. Carefi n acknowledges support from: ALETTI GESTIELLE ALLIANZ S.p.A. ARCA ASSICURAZIONI ARCA SGR ASSICURAZIONI GENERALI AVIVA VITA AXA I. M. ITALIA SIM S.p.A. AXA MPS ASSICURAZIONI VITA BANCA CARIGE BANCA MONTE DEI PASCHI DI SIENA BANCA POPOLARE DI LODI BANCA POPOLARE DI MILANO BANCASSURANCE POPOLARI BNL VITA CATTOLICA ASSICURAZIONI SOC. COOP. CNP UNICREDIT VITA DELOITTE CONSULTING EURIZON CAPITAL SGR EURIZON VITA FONCHIM GENERALI INVESTMENTS ITALY INTESA SANPAOLO INTESA VITA MEDIOLANUM VITA PIONEER INVESTMENTS MANAGEMENT SWISS RE UBI ASSICURAZIONI UNIPOL GRUPPO FINANZIARIO UNIQA PREVIDENZA – UNIQA PROTEZIONE VENETO BANCA viii Preface Paolo Mottura Financial innovation has by now become a permanent and irreversible phenomenon, which therefore deserves to be continuously studied in order to understand its origins and drivers, to analyse its various forms, to evalu- ate its positive and negative externalities at the macroeconomic level and fi nally to investigate the organic relationship with the competitive strate- gies of fi nancial intermediaries. The current and prospective context of fi nancial globalisation – which involves both capital markets and fi nancial intermediaries – is charac- terised by particularly intense competition, onto which fi nancial regula- tory authorities try to impose certain rules, without, however, imposing limits. Obviously the challenge lies in trying to achieve the dual objective of, on the one hand maximising positive externalities, in other words the benefi ts of innovation for the real economy itself, and on the other, lim- iting as far as possible the negative externalities that innovation infl icts on real economies and on the return/risk performance for stakeholders (fi nancial intermediaries, fi rms, investors, public administrations and so forth). As far as the strategy of fi nancial intermediaries is concerned, innovation has now become an instrument or, as some would say, a crucial competi- tive weapon. Process innovation, strongly supported and stimulated by new tech- nologies, plays an essential role as a factor of differentiation between the single producer and his/her competitors. Process innovation is focused on obtaining results and levels of productivity and slashing the costs of production and distribution (cost leadership), as well as improving the quality and reliability of the procedures themselves for the benefi t of the client, risk control and internal checks. This type of innovation contributes greatly in improving the reputation of those who are able to manage it. It is important to note that process technology is important for two different reasons: on the one hand, technology that produces cost savings through the substitution of technological investments vis-à-vis labour, increasing its productivity and favouring more-skilled jobs, and on the other, ‘enabling’ technology which allows for the creation and valorisation of activities, ix
The list of books you might like
