LIMITED OFFER
Save 50% on book bundles
Immediately download your ebook while waiting for your print delivery. No promo code needed.
Handbook of Key Global Financial Markets, Institutions, and Infrastructure
- 1st Edition - November 27, 2012
- Editor: Gerard Caprio
- Language: English
- Hardback ISBN:9 7 8 - 0 - 1 2 - 3 9 7 8 7 3 - 8
- eBook ISBN:9 7 8 - 0 - 1 2 - 4 0 5 8 9 8 - 9
Understanding twenty-first century global financial integration requires a two-part background. The Handbook of Key Global Financial Markets, Institutions, and In… Read more
Purchase options
Institutional subscription on ScienceDirect
Request a sales quoteUnderstanding twenty-first century global financial integration requires a two-part background. The Handbook of Key Global Financial Markets, Institutions, and Infrastructure begins its description of how we created a financially-intergrated world by first examining the history of financial globalization, from Roman practices and Ottoman finance to Chinese standards, the beginnings of corporate practices, and the advent of efforts to safeguard financial stability. It then describes the architecture itself by analyzing its parts, such as markets, institutions, and infrastructure. The contributions of sovereign funds, auditing regulation, loan markets, property rights, compensation practices, Islamic finance, and others to the global architecture are closely examined. For those seeking substantial, authoritative descriptions and summaries, this volume will replace books, journals, and other information sources with a single, easy-to-use reference work.
- Substantial articles by top scholars sets this volume apart from other information sources
- Diverse international perspectives result in new opportunities for analysis and research
- Rapidly developing subjects will interest readers well into the future
Undergraduates and graduate students worldwide working in all areas of finance and economics. Researchers will typically be examining the global aspects and implications of their particular interests
Volume 1
Section Editors for this volume
Preface
Contributors
I: Globalization of Finance: An Historical View
Chapter 1. History of Financial Globalization, Overview
References
Chapter 2. Banking Fragility, United States, 1790–2009
Introduction
Banking Fragility in Theory and in Historical Reality
US Banking Crises: 1790–1933
A Worldwide Tale of Two Banking Eras: 1875–1913 and 1978–2009
Glossary
References
Further Reading
Chapter 3. Bretton Woods and Monetary Regimes
Introduction
Types and Examples of Monetary Regimes
The Classical Gold Standard
The Interwar Years, the Gold-Exchange Standard, and the Great Depression
Bretton Woods and the Anglo-American Compromise
Conclusion
Further Reading
Chapter 4. British Corporate Finance, 1500–1860
World in 1500
Impact of the Voyages of Discovery
Emergence of the Joint-Stock Company
Rise of the Secondary Market in Shares
War Financing – State and Capital Markets
Into the Nineteenth Century
References
Chapter 5. Chinese Finance, 1348–1700
Public and Private Finance in China, 1000–1700
The Monetary System
Public Finance
Credit and Private Finance
Summary
Glossary
Further Readings
Chapter 6. Chinese Money and Monetary System, 1800–2000, Overview
A Conceptual Framework
1800–50
1850–1911
1911–30
1930–49
Acknowledgments
Glossary
References
Chapter 7. Dutch Bank Finance, 1600–1800
An Exchange Bank
The First Five Decades
Fiat Money
Monetary Policy
Eighteenth Century
Conclusion
Further Reading
Chapter 8. Dutch Corporate Finance, 1602–1850
Introduction
From Partnerships to Chartered Public Companies, 1602–1680
Branching Out, 1680–1795
New Challenges, 1795–1850
Conclusion
Further Reading
Relevant Websites
Chapter 9. The Financial Revolution in England
Introduction
The Origins of the Financial Revolution in England
The Development of the Instruments of State Debt
Controlling the Costs of Debt
The Question of Credibility
The Consequences of England’s Financial Revolution
Glossary
Further Reading
Chapter 10. Commercial Finance in Europe, 1700–1815
Introduction
The Instrument: Bills of Exchange
Sources
Mapping Commercial Finance
The Cost of Commercial Finance: Searching for Interest Rate
Conclusion
See also
References
Chapter 11. Exchanges, Rules Governing
France
Germany
Great Britain
Owners Versus Operators
United States
Further Reading
Chapter 12. French Corporate Finance, 1500–1900
Glossary
References
Chapter 13. Genoese Finance, 1348–1700
Introduction
The Origins of the Genoese Public Debt (Twelfth–Twenty-fourth Centuries)
The Birth of the Officium Comperarum Sancti Georgii
The Governance of the Office of Saint George
The Birth of the Republic of Genoa
The Banking Activity of the House of Saint George
The Genoese Exchange Fairs
The New Debt of the Republic: The Creation of the Monti
Conclusion
See also
Glossary
Further Readings
Relevant Websites
Chapter 14. The Political Economy of Global Financial Liberalization in Historical Perspective
Introduction
What Is There to Explain?
Theory
History
Conclusion
Acknowledgments
References
Chapter 15. Alexander Hamilton
Introduction
Hamilton’s Origins
War and Finance
The Confederation Interim
Secretary of the Treasury
Conclusion: The US Financial Revolution and Economic Growth
Further Reading
Chapter 16. Hanseatic Merchants and Credit, 1300–1700
Introduction
Origins of Banking in Northern Germany
Credit Instruments in the Fifteenth and Sixteenth Centuries
Immigration and Innovation
The Adaptation of Western Credit Instruments in the Baltic Trade
Conclusion
References
Chapter 17. John Law and his Experiment with France, 1715–1726
The Beginnings
The Pinnacle
The Debacle
The Impact
See also
Further Reading
Chapter 18. Low Countries Finance, 1348–1700
Introduction
Common Origins
Going Separate Ways: The Dutch Revolt
Holland’s Exceptionalism
Entering a Vicious Debt Circle
Constrained by Local Particularism: The Austrian Netherlands
Conclusion
Further Reading
Chapter 19. Milanese Finance, 1348–1700
The Viscontis and the Emergence of a Tax State (Mid-Fourteenth Century to 1447)
The Consolidation of the Government Financing System Between the Ambrosiana Republic and the Sforzas (1447–1535)
The Rise of a Fiscal State Under the Habsburgs (1535–1706)
See also
References
Chapter 20. Finance in the Ottoman Empire, 1453–1854
Introduction
Money, Credit, and Islam
Business Partnerships
Flexibility in the Monetary System
Fiscal Institutions and Public Finance
Linkages with Western European Capital Markets?
From Debasements to Bimetallism
Financing the State: The Galata Bankers
Conclusion
See also
Further Reading
Chapter 21. Papal Finance, 1348–1848
The Making of the Papal States
The Role of Public Debt
The Growth of Financial Structures
The Times of Decline
See also
Glossary
Further Reading
Relevant Websites
Chapter 22. Precious Metals and Moneys, 1200–1800
Islamic Market Unification; Chinese Silver Exports During the Mongol Period
Intensification of Chinese Silverization from the Mid-Fifteenth Century
The First Global Cycle of Silver (1540–1640): Bimetallic Ratios and the Silver-for-Gold Trade
The First Global Cycle of Silver (1540–1640): The Role of Japan
The First Global Cycle of Silver (1540–1640): Spanish-American Silver
Globalization’s Sixteenth-Century Birth and Subsequent Ramifications
The Mexican Cycle of Silver (1700–1750) and American Crops and Seeds
Conclusions
References
Chapter 23. Rentes and the European ‘Financial Revolution’
Chief Features of the Modern Financial Revolution
The Geographic Origins of the ‘Financial Revolution’: Public Finances in the Low Countries and France
The Historical Origins of the Rente Contracts: In Private Agricultural Finance
The Usury Doctrine and the Revival of the Anti-Usury Campaign
The Relationship Between Franco-Flemish Urban Rentes and the Anti-Usury Campaign in the Thirteenth Century
The Ecclesiastical Debate About the Usurious or Licit Nature of Rentes
Payments to Rentiers in Later-Medieval Flemish Towns
The Development of a Permanent Funded National Debt in Early-Modern France
The Development of Permanent Funded National Debts in Spain (Castile)
The Public Finances of the Later Medieval Italian City States: Forced Loans
Protestant England and the Usury Question
The Beginnings of the English Financial Revolution, from 1693
Excise Taxes in Funding the English National Debt
The Three Sisters and the English National Debt
The Role of Annuities in the English National Debt (to 1719–20)
The Aftermath of the South Sea Bubble and Pelham’s Conversion: 1721–57
Economic Contributions of the Financial Revolution
See also
Glossary
Appendix Yields on Perpetual Rents, Life Rents, and Loans
References
Chapter 24. Ancient Roman Finance
References
Chapter 25. Spanish Finance, 1348–1700
Introduction
Political Organization
Revenues
Debt
See also
Glossary
Further Reading
Chapter 26. The Financial Revolution in Sweden, 1650–1900
Introduction
The Swedish Financial Revolution
Conclusions
See also
References
Chapter 27. Global Financial Brands and the Underwriting of Foreign Government Debt since 1815
Introduction
Focus, Figures, and Facts
Prospecting
Planning
Placing
Post-Issue Support and Performance
Conclusion: The Global Financial System as a Structured Product
Acknowledgments
References
Relevant Websites
Chapter 28. Venetian Finance, 1400–1797
Revenues
Taxation
Taxpayers
Financial Needs
Public Debt
The Floating Debt
See also
Glossary
Further Reading
Chapter 29. Wars and the International Trading System, 1900–2000
See also
Further Reading
II: Key Market, Institutions, and Infrastructure In Global Finance
Chapter 30. Development of Accounting Standards
United States
United Kingdom, Canada, Australia, France, Germany, and Japan
International Accounting Standards Board
See also
Conclusion
Acknowledgment
Glossary
References
Chapter 31. Contemporary Audit Regulation – Going Global!
Introduction: Audit Regulation
Key Players in the Audit Regulatory Arena
The Global Regulatory Involvement of Audit Firms
The Global Regulatory Involvement of National Professional Accounting Bodies
Audit Regulation and Audit Quality
Regulatory Compliance and Enforcement
Conclusion: Maintaining Public Interest in Global Regulation
See also
Appendix Abbreviations
Further Reading
Relevant Websites
Chapter 32. Justifications for Audits of Financial Statements
Introduction
Justifications for Financial Statement Audits
The Justification for Government Intervention into Auditing
The Implementation of External Audits
Auditing After the Securities Acts
The Structure and Growth of the Industry
Competition Rules Change in the 1970s
Modern Firm Structure
Competing Incentives for Firms in the 1990s
Sarbanes–Oxley Act of 2002
The Future of Auditing
References
Chapter 33. Global Banks and Financial Intermediaries
Introduction
The Standard Model of Banking
Banking in the Postwar Period
The Emergence of a New Banking System
Distinctive Features of Modern Banking
Conclusion
References
Chapter 34. Corporate Governance
Basic Concepts
Corporate Governance as a System
Internal Institutions
External Institutions
References
Chapter 35. Credit Ratings and Credit Rating Agencies
Introduction
Objects of Credit Ratings
Business Models of Credit Rating Agencies
Functions of Credit Ratings and Credit Rating Agencies
Market Structure and Competition
Regulation of Credit Rating Agencies
See also
Further Reading
Chapter 36. Earnings Quality
A Case in Point
What Exactly Is Earnings Quality?
Who Cares About Earnings Quality?
What Affects Earnings Quality?
Can Investors See Through the Quality Veil?
Are Things Getting Better?
And Earnings Quality Around the World?
From Descriptive to Prescriptive: How to Assess Earnings Quality?
Conclusion
Acknowledgments
Further Reading
Chapter 37. Exchanges
Exchanges and Their Evolution
Exchange-Traded Instruments
Organization and Governance of Exchanges
Regulation of Exchanges
Best Execution and the National Market System
Globalization and Transnational Exchanges
Chapter 38. Equity Markets
Definition, Structure, and Functions of Equity Markets
Evolution of Equity Markets
Equity Markets Around the World
Globalization and Localization
The Future of Equity Markets
Glossary
See also
Further Reading
Relevant Websites
Chapter 39. Fair Value and Accounting
Introduction
The Purpose of the Balance Sheet
Fair Value Measurement Standards
Fair Value and Historical Cost Accounting
Assets That Generate Cash Directly
Fair Value and the Financial Crisis
Fair Value and Financial Instruments After the Crisis
Full Fair Value Financial Statements
Conclusion
Glossary
Further Reading
Chapter 40. Fair Value Accounting, Disclosure and Financial Stability
Introduction
The Role of Accounting Standards
How Might FVA Have Exacerbated the Financial Crisis?
See also
References
Chapter 41. Investment Banks
Introduction
Concepts
Origins
Functions and Objectives
Investment Banks and Commercial Banks
Business Streams
Markets in Information and Reputational Capital
Questions, Concerns, and Post-crisis Outcomes
See also
Glossary
Further Reading
Chapter 42. Overview of Islamic Finance
What Is Forbidden (Ḥarām): Gharar (Uncertainty)
What Is Forbidden (Ḥarām): Ribā (Interest)
Legal Devices (Ḥiyal) to Circumvent the Proscriptions on Gharar and Ribā
Islamic Bonds (Ṣukuk) and Securitization
Insurance (Takaful) and Transfers (Ḥawālah)
New Islamic Products: Sharī‘a Compliant Investment Funds
Further Reading
Chapter 43. Loan Markets
Overview
Advantages of Loan Markets to Borrowers
Key National and Regional Loan Markets
Leading Industry Associations
Evolution of the Loan Asset
The Financial Institutions Involved in the Loan Markets
Two Stages of the Loan Cycle: Primary and Secondary
Law, Regulation, and Litigation
The Global Financial Crisis and its Impact on Loan Markets
The Future
See also
Further Reading
Relevant Websites
Chapter 44. Microfinance: Costs, Lending Rates, and Profitability
Introduction
Introduction to Microfinance
High Profitability?
Outreach: The MFI’s Social Mission
Conclusions
References
Further Reading
Relevant Websites
Chapter 45. OTC – Derivative Market
The Over-the-Counter Derivatives Market
Understanding the CDS Market and the Use of CDS Data
Glossary
Appendix: Typical OTC Derivative Position from an SIFI’s Financial Statement
References
Further Reading
Chapter 46. Global Payment and Settlement Systems
Introduction
Foreign Exchange Transactions
Payment System Risk
The Failure to Complete Settlement on Participant’s Default
Conclusion
Further Reading
Chapter 47. Pension Funds
Introduction
What are Pension Plans, Funds, and Firms?
Key Policy Issues with Pension Funds
References
Chapter 48. Project and Asset Finance
Introduction
Project and Asset Finance and Economics
Project Finance
Major Asset Financing: Ships and Aircraft
Endnote
See also
Glossary
Further Reading
Relevant Websites
Chapter 49. Property Rights in an Era of Global Finance
Introduction
The Nature of Property Rights
The Local Origins of Property
Supranational Property Instruments: A General Survey
The Challenge of Globalization: Resource-Specific Comments
Conclusion
References
Chapter 50. Securities Settlement Systems
Definition
The Legal Requirements for Transferring Securities
The Creation of the Contemporary Depository Model
The Legal Characteristics of Settlement in the Currently Dominant, Depository Model
Disadvantages of the Depository Model
Ameliorating the Disadvantages of the Depository Model
The Future of Securities Settlement
Glossary
Further Reading
Relevant Websites
Chapter 51. Securitization and Structured Finance
Overview of Securitization
The Economics of Securitization
Potential Abuses of Securitization
The Future of Securitization
See also
Further Reading
Chapter 52. Sovereign Funds
Overview: Definition, Type, Size, and Number
Background and Context: Global Imbalances
Investment Strategies and Performance of SWFs
Issues and Concerns Over SWFs
Regulatory Response to the Rise of SWFs
Implications of SWFs for the Global Financial System
Further Reading
Relevant Websites
Chapter 53. Finance
Introduction
Cash in Advance
Documentary Sale with Confirmed Letter of Credit
Open Account
Commercially Based Working Capital Financing
Export Credit Insurance and Financing
Factoring and Forfaiting
Additional Points
Further Reading
Index
- No. of pages: 634
- Language: English
- Edition: 1
- Published: November 27, 2012
- Imprint: Academic Press
- Hardback ISBN: 9780123978738
- eBook ISBN: 9780124058989
GC
Gerard Caprio
Gerard Caprio is William Brough Professor of Economics and Chair, Center for Development Economics at Williams College. He has served as the Head of Financial Sector Policy at The World Bank and Vice President and Head of Global Economics at J.P. Morgan.
Affiliations and expertise
Williams College,
Williamstown, MARead Handbook of Key Global Financial Markets, Institutions, and Infrastructure on ScienceDirect