Journal of Public Budgeting, Accounting & Financial Management
PurposeThis study contributes to the literature on local administrations' debt and attempts t... more PurposeThis study contributes to the literature on local administrations' debt and attempts to answer the following research questions: (1) What effects do swaps produce on regions' debt? (2) Have swaps been used to finance discretionary debt?Design/methodology/approachThe paper investigates the debt burden as influenced by economic, financial and political variables and forces with panel data techniques, and tests whether swaps have been used to financing debt due to unfunded expenditures.FindingsPanel data results of 15 Italian regions over the 2007–2014 period shows that regions with higher debt exhibited a higher interest rate exposure and have employed derivatives hoping to counterbalance the reduced resources received from the central state, in line with other European countries' experience (i.e. France and Greece).Research limitations/implicationsThe scarcity of official data and information on swaps has limited the empirical investigations in the literature but d...
Purpose The purpose of this paper is to underline the (hidden) risks posed after the crisis by th... more Purpose The purpose of this paper is to underline the (hidden) risks posed after the crisis by the exemption of non-financial operators, especially sovereigns, from the regulatory reforms of over the counter (OTC) derivatives undertaken by G20 countries in the absence of accounting data on trading. Design/methodology/approach Recent financial regulatory improvements are reported to underline that the trading of OTC derivatives by sovereigns and local administrations does not take place under the new regulatory umbrella, because of the relative size of the institution, the lack of incentives to adhere to Centralized Counterparty Systems (CCPs) and most of all, the absence of proper accounting rules. Sovereigns and local administrations have the potential to undermine global financial stability. Findings The limited availability of accounting data on derivatives’ use by public administrations constitutes a barrier towards a full comprehension of risks involved. Sovereigns should be co...
The financial and risk management are integral parts of public debt management, and are common in... more The financial and risk management are integral parts of public debt management, and are common in Western countries; the use of innovative financial securities for these purposes, such as interest rate swaps, forces sovereign states to behave in a more credible way, from a financial point of view, and moves toward a greater degree of transparency of accounting rules. The Governmental Accounting Standard Board (GASB) project to improve the transparency of present accounting rules for these innovative securities goes in the direction of introducing proper risk management and better market procedures, in order to increase financial stability in the interest of all market players.
Il sistema bancario e finanziario italiano utilizza l'innovazione per modificare la propria strut... more Il sistema bancario e finanziario italiano utilizza l'innovazione per modificare la propria struttura e per cogliere nuove occasioni di profittabilità e di miglioramento della performance. Le banche italiane, sottoposte ad una crescente pressione concorrenziale a causa delle mutate condizioni di mercato domestico ed europeo, hanno risposto alla sfida dell'ICT (Information and Communication Technology) utilizzando l'innovazione sia per il back office (per la riduzione dei costi operativi e l'aumento dell'efficienza), sia per l'introduzione di nuovi strumenti finanziari e servizi alla clientela. L'impatto dell'ICT sulle imprese bancarie e creditizie può essere analizzato guardando a due sotto-categorie: la mass automation e la smart automation . La prima rappresenta l'innovazione tecnologica (di processo) nelle procedure di back office della banca, rese più veloci, sicure e affidabili grazie all'innovazione tecnologica.
Journal of Public Budgeting, Accounting & Financial Management
PurposeThis study contributes to the literature on local administrations' debt and attempts t... more PurposeThis study contributes to the literature on local administrations' debt and attempts to answer the following research questions: (1) What effects do swaps produce on regions' debt? (2) Have swaps been used to finance discretionary debt?Design/methodology/approachThe paper investigates the debt burden as influenced by economic, financial and political variables and forces with panel data techniques, and tests whether swaps have been used to financing debt due to unfunded expenditures.FindingsPanel data results of 15 Italian regions over the 2007–2014 period shows that regions with higher debt exhibited a higher interest rate exposure and have employed derivatives hoping to counterbalance the reduced resources received from the central state, in line with other European countries' experience (i.e. France and Greece).Research limitations/implicationsThe scarcity of official data and information on swaps has limited the empirical investigations in the literature but d...
Purpose The purpose of this paper is to underline the (hidden) risks posed after the crisis by th... more Purpose The purpose of this paper is to underline the (hidden) risks posed after the crisis by the exemption of non-financial operators, especially sovereigns, from the regulatory reforms of over the counter (OTC) derivatives undertaken by G20 countries in the absence of accounting data on trading. Design/methodology/approach Recent financial regulatory improvements are reported to underline that the trading of OTC derivatives by sovereigns and local administrations does not take place under the new regulatory umbrella, because of the relative size of the institution, the lack of incentives to adhere to Centralized Counterparty Systems (CCPs) and most of all, the absence of proper accounting rules. Sovereigns and local administrations have the potential to undermine global financial stability. Findings The limited availability of accounting data on derivatives’ use by public administrations constitutes a barrier towards a full comprehension of risks involved. Sovereigns should be co...
The financial and risk management are integral parts of public debt management, and are common in... more The financial and risk management are integral parts of public debt management, and are common in Western countries; the use of innovative financial securities for these purposes, such as interest rate swaps, forces sovereign states to behave in a more credible way, from a financial point of view, and moves toward a greater degree of transparency of accounting rules. The Governmental Accounting Standard Board (GASB) project to improve the transparency of present accounting rules for these innovative securities goes in the direction of introducing proper risk management and better market procedures, in order to increase financial stability in the interest of all market players.
Il sistema bancario e finanziario italiano utilizza l'innovazione per modificare la propria strut... more Il sistema bancario e finanziario italiano utilizza l'innovazione per modificare la propria struttura e per cogliere nuove occasioni di profittabilità e di miglioramento della performance. Le banche italiane, sottoposte ad una crescente pressione concorrenziale a causa delle mutate condizioni di mercato domestico ed europeo, hanno risposto alla sfida dell'ICT (Information and Communication Technology) utilizzando l'innovazione sia per il back office (per la riduzione dei costi operativi e l'aumento dell'efficienza), sia per l'introduzione di nuovi strumenti finanziari e servizi alla clientela. L'impatto dell'ICT sulle imprese bancarie e creditizie può essere analizzato guardando a due sotto-categorie: la mass automation e la smart automation . La prima rappresenta l'innovazione tecnologica (di processo) nelle procedure di back office della banca, rese più veloci, sicure e affidabili grazie all'innovazione tecnologica.
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