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ALM practices, multiple uncertainties and monopolistic behavior: A microeconomic study of banking decisions

Author

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  • Antonio Ruiz-Porras

    () (Universidad de Guadalajara)

Abstract

Estudiamos las decisiones tomadas por un banco monopolico para alcanzar objetivos de administracion de riesgos y de rentabilidad. El banco enfrenta riesgos de liquidez y solvencia porque los prestamos pueden no ser pagados y porque pueden ocurrir inesperados retiros de depositos. El modelo bancario de administracion de activos y pasivos (ALM) muestra que las soluciones de compromiso son necesarias para manejar los dilemas entre la administracion de la liquidez y la rentabilidad. Tambien muestra que las practicas de administracion de activos pueden incrementar las ganancias. Mas aun, muestra que las practicas de administracion de pasivos y el poder de mercado sustentan la rentabilidad. Finalmente, el modelo confirma que los bancos deben asumir inversiones riesgosas de largo plazo cuando los depositantes confian en la viabilidad del proceso de transformacion de activos.

Suggested Citation

  • Antonio Ruiz-Porras, 2011. "ALM practices, multiple uncertainties and monopolistic behavior: A microeconomic study of banking decisions," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 8(2), pages 163-181, Julio-Dic.
  • Handle: RePEc:qua:journl:v:8:y:2011:i:2:p:163-181
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    File URL: http://econoquantum.cucea.udg.mx/volumen_8_num_2/suplemento_4_vol_8_num_2.pdf
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    Citations

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    Cited by:

    1. Carolina Laureti & Ariane Szafarz, 2012. "The Time-Inconsistency Factor: How Banks Adapt to their Mix of Savers," Working Papers CEB 12-035, ULB -- Universite Libre de Bruxelles.
    2. Carolina Laureti & Ariane Szafarz, 2014. "Having it Both Ways: A Theory of the Banking Firm with Time-Consistent and Time-Inconsistent Depositors," Working Papers CEB 14-011, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    Banking; ALM; multiple uncertainties; monopolistic behavior.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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