The Banking System and the Derivatives: The State of the Art and the Management Mechanisms

Mostéfaoui Sofiane; Yousfat Ali

doi:doi:10.11648/j.ijefm.20160405.22

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The Banking System and the Derivatives: The State of the Art and the Management Mechanisms

Mostéfaoui Sofiane, Yousfat Ali

Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 5)

Received: 3 January 2016 Accepted: 5 April 2016 Published: 27 October 2016

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Abstract

The financial transactions witnessed an explosion and huge dealings with financial derivatives. The sense of these assets comes from the dependence of their values on the principal ones (the original asset: bond, equity, exchange rate…). The objective behind the emergence and the wide uses of them is to hedge the financial securities against risks and reduce the volatility of their revenues. This paper attempts to shed light on the impact of the financial derivatives on the safety and soundness of the banking system by analyzing the determinants of this impact and the sensitiveness of the banking system to risks associated by the usage of the financial derivatives.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 5)
DOI	10.11648/j.ijefm.20160405.22
Page(s)	309-313
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Derivatives, Risks, Banking System

References

[1]	Alibert, R. Z. (1987) ʻFinancial Innovation and the boundaries of bankingʼ, Managerial and Decision Economics, Vol. 8, No. 1: 67-73.
[2]	Arnould, W. A., Boot and Anjan, V. T. (1997) ʻBanking Scope and Financial Innovationʼ, The Review of Financial Studies, Vol. 10, No.4: 1099-1131.
[3]	Carter. M. (1989) Financial Innovation and Financial Fragility, Journal of Economic Issues, Vol. 23, No.3: 779-793.
[4]	Carlos Pérez Montes. (2014), The Effect on Competition of Banking Sector Consolidation Following the Financial Crisis of 2008, Journal of Banking and Finance 43, 124-136.
[5]	Gorton. G. and Rosen, R. (1995)ʻBanks and Derivativesʼ, NBER Macroeconomics Annual, Vol. 10: 299-339.
[6]	Emanuel Barnea, Yoram Landskroner, Meir Sokoler. (2015), Monetary policy and financial stability in a banking economy: Transmission mechanism and policy tradeoffs, Journal of Financial Stability 18, 78-90.
[7]	Eugenio Cerutti. (2015), Drivers of cross-border banking exposures during the crisis, Journal of Banking and Finance 55, 340-357.
[8]	Franziska Bremus, Marcel Fratzscher. (2015), Drivers of Structural Change in Cross-Border Banking since thje Global Financial Crisis, Journal of International Money and Finance 52, 32-59.
[9]	Henry. T. C., Hu. (1989) ʻSwaps, The Modern Process of Financial Innovation and the Vulnerability of a Regulatory Paradigm, University of Pennsylvania Law Review, Vol. 138, No. 2: 333-345.
[10]	John V. Duca. (2015), How Capital Regulation and Other Factors drive the Role of the Shadow Banking in Funding Short Term Business Credit, Journal of Banking and Finance, 1-15.
[11]	Mardi Dungey, Jan P.A.M. Jacobs, Lestano. (2015), The Internationalization of Financial Crises: Banking and Financeial Crises 1883-2008, North American Journal of Economics and Finance 32, 29-47.
[12]	Mishkin. F.S. (2004) The Economics of Money, Banking and Financial Markets, 7th edition (The Addison-Wesley series in Economics).
[13]	Shaofang Li, Matej Marinč. (2014), The use of financial derivatives and risks of U. S. bank holding companies, International Review of Financial Analysis 35, 46-71.
[14]	Vincent Bouvatier, Anne-Laure Delatte. (2015), Waves of international banking integration: A tale of regional differences, European Economic Review 80, 354-373.

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APA Style

Mostéfaoui Sofiane, Yousfat Ali. (2016). The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. International Journal of Economics, Finance and Management Sciences, 4(5), 309-313. https://doi.org/10.11648/j.ijefm.20160405.22

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ACS Style

Mostéfaoui Sofiane; Yousfat Ali. The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. Int. J. Econ. Finance Manag. Sci. 2016, 4(5), 309-313. doi: 10.11648/j.ijefm.20160405.22

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AMA Style

Mostéfaoui Sofiane, Yousfat Ali. The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. Int J Econ Finance Manag Sci. 2016;4(5):309-313. doi: 10.11648/j.ijefm.20160405.22

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@article{10.11648/j.ijefm.20160405.22,
  author = {Mostéfaoui Sofiane and Yousfat Ali},
  title = {The Banking System and the Derivatives: The State of the Art and the Management Mechanisms},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {5},
  pages = {309-313},
  doi = {10.11648/j.ijefm.20160405.22},
  url = {https://doi.org/10.11648/j.ijefm.20160405.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160405.22},
  abstract = {The financial transactions witnessed an explosion and huge dealings with financial derivatives. The sense of these assets comes from the dependence of their values on the principal ones (the original asset: bond, equity, exchange rate…). The objective behind the emergence and the wide uses of them is to hedge the financial securities against risks and reduce the volatility of their revenues. This paper attempts to shed light on the impact of the financial derivatives on the safety and soundness of the banking system by analyzing the determinants of this impact and the sensitiveness of the banking system to risks associated by the usage of the financial derivatives.},
 year = {2016}
}

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TY  - JOUR
T1  - The Banking System and the Derivatives: The State of the Art and the Management Mechanisms
AU  - Mostéfaoui Sofiane
AU  - Yousfat Ali
Y1  - 2016/10/27
PY  - 2016
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DO  - 10.11648/j.ijefm.20160405.22
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JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
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AB  - The financial transactions witnessed an explosion and huge dealings with financial derivatives. The sense of these assets comes from the dependence of their values on the principal ones (the original asset: bond, equity, exchange rate…). The objective behind the emergence and the wide uses of them is to hedge the financial securities against risks and reduce the volatility of their revenues. This paper attempts to shed light on the impact of the financial derivatives on the safety and soundness of the banking system by analyzing the determinants of this impact and the sensitiveness of the banking system to risks associated by the usage of the financial derivatives.
VL  - 4
IS  - 5
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Author Information

Mostéfaoui Sofiane

Department of Management Sciences, University of Adrar, Adrar, Algeria
Yousfat Ali

Department of Management Sciences, University of Adrar, Adrar, Algeria

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APA Style

Mostéfaoui Sofiane, Yousfat Ali. (2016). The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. International Journal of Economics, Finance and Management Sciences, 4(5), 309-313. https://doi.org/10.11648/j.ijefm.20160405.22

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ACS Style

Mostéfaoui Sofiane; Yousfat Ali. The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. Int. J. Econ. Finance Manag. Sci. 2016, 4(5), 309-313. doi: 10.11648/j.ijefm.20160405.22

Copy | Download

AMA Style

Mostéfaoui Sofiane, Yousfat Ali. The Banking System and the Derivatives: The State of the Art and the Management Mechanisms. Int J Econ Finance Manag Sci. 2016;4(5):309-313. doi: 10.11648/j.ijefm.20160405.22

Copy | Download

@article{10.11648/j.ijefm.20160405.22,
  author = {Mostéfaoui Sofiane and Yousfat Ali},
  title = {The Banking System and the Derivatives: The State of the Art and the Management Mechanisms},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {5},
  pages = {309-313},
  doi = {10.11648/j.ijefm.20160405.22},
  url = {https://doi.org/10.11648/j.ijefm.20160405.22},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160405.22},
  abstract = {The financial transactions witnessed an explosion and huge dealings with financial derivatives. The sense of these assets comes from the dependence of their values on the principal ones (the original asset: bond, equity, exchange rate…). The objective behind the emergence and the wide uses of them is to hedge the financial securities against risks and reduce the volatility of their revenues. This paper attempts to shed light on the impact of the financial derivatives on the safety and soundness of the banking system by analyzing the determinants of this impact and the sensitiveness of the banking system to risks associated by the usage of the financial derivatives.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - The Banking System and the Derivatives: The State of the Art and the Management Mechanisms
AU  - Mostéfaoui Sofiane
AU  - Yousfat Ali
Y1  - 2016/10/27
PY  - 2016
N1  - https://doi.org/10.11648/j.ijefm.20160405.22
DO  - 10.11648/j.ijefm.20160405.22
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 309
EP  - 313
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20160405.22
AB  - The financial transactions witnessed an explosion and huge dealings with financial derivatives. The sense of these assets comes from the dependence of their values on the principal ones (the original asset: bond, equity, exchange rate…). The objective behind the emergence and the wide uses of them is to hedge the financial securities against risks and reduce the volatility of their revenues. This paper attempts to shed light on the impact of the financial derivatives on the safety and soundness of the banking system by analyzing the determinants of this impact and the sensitiveness of the banking system to risks associated by the usage of the financial derivatives.
VL  - 4
IS  - 5
ER  -

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