/library/oar/handle/123456789/5444 2025-12-26T12:30:23Z /library/oar/handle/123456789/7581 Title: An analysis of financial markets integration within the European Union Abstract: Given the context of world globalisation, financial integration is gaining ever increasing importance. This subject has long been at the centre of debate within the European Union. Inspired by the importance of this subject, the dissertation investigates European financial integration during the period 1998-2012. As an indication of European Union integration the study focuses on six member states (Luxembourg, Ireland, Netherlands, Slovenia, Malta and Slovakia), which are compared with the European benchmark (Germany). The analysis is performed using the law of one price as a backing theory and by applying price based measure of financial integration. Overall the study shows that financial integration changes over time and different member states have different levels of financial integration with the European benchmark. Countries with higher levels of GDP seem to have a superior degree of integration. Yet an increase in integration can be noted for new member states, particularly following the euro adoption. The study also reveals that the financial and sovereign debt crises have negatively impacted integration within the European Union. However there is also evidence of recovery during the second half of 2012. The dissertation is concluded by providing suggestions for future studies. Such studies can aid policy makers and investors in augmenting the decision making process. Description: B.COM.(HONS)BANK.&FIN. 2012-01-01T00:00:00Z /library/oar/handle/123456789/6435 Title: The fear of equity : the macroeconomics of European aversion towards stock markets Abstract: The aim of this dissertation is to analyse and evaluate the impact of macroeconomic indicators on stock market participation in the European Union (EU). This dissertation implements the methods of panel regression analysis to achieve the aim and assess the statistical significance of the determinants of stock market participation. Five European countries from 1991 to 2009 have been chosen to represent the European stock markets. In the course of the research, it has been found that the stock market participation in Europe is positive affected by the real gross domestic product per capita and inflation. However, the results of testing also revealed that interest rates, unemployment rates and savings rates had a negative effect on the stock market participation. The results are limited in their power to make generalisation on the whole European Union since an assumption of homogeneity of stock markets was made and less than a fifth of the countries that comprise the EU have been analysed. Recommendations are provided to expand the sample and to conduct a comparative study that will include non-European countries as well. Description: B.COM.(HONS)BANK.&FIN. 2012-01-01T00:00:00Z /library/oar/handle/123456789/6265 Title: An empirical study of the capital requirements and bank behaviour : evidence for Maltese banks Abstract: In recent years, regulators have "increased their focus on the capital adequacy of banking institutions"(Rime 2001, Rime 2001)(Matejasák M., Petr T. 2007) with the specific aim of enhancing their stability, hence the stability of the whole financial system (Rime 2001)(Matejasák M., Petr T. 2007). The purpose of this dissertation is thus to assess and judge how banks operating in the local Maltese market adjust their level of capital and portfolio risk under capital regulation, and whether and how they react to the constraints placed by the regulators (Rime 2001)(Matejasák M., Petr T. 2007). In order to do this, the researcher used variables from the estimated modified version of the model developed by (Shrieves, Dahl 1992)(Matejasák M., Petr T. 2007), and used correlation analysis to analyse the results. Results will then enable the researcher to establish whether regulatory requirements have the desired effect on bank behaviour (Matejasák M., Petr T. 2007). This analysis mainly delves through some theories that try to explain bank behaviour toward capital requirement, but focus mainly on the Capital buffer theory and the Moral hazard theory. The researcher will then attempt to ascertain whether these theories are in line with the Maltese Banking behaviour. This research in fact demonstrated that both theories are in line with the obtained results; however the findings went against literature proposing that regulation led to an economic downturn. Several conclusions were drawn through this study, which will be further explained in the prevailing chapters. Description: B.COM.(HONS)BANK.&FIN. 2012-01-01T00:00:00Z /library/oar/handle/123456789/6079 Title: Governance, risk management and compliance practices within Maltese credit institutions Abstract: In light of the recent banking crisis and the continuous development of financial regulations, a new school of thought prescribing an integrated approach towards Governance, Risk Management and Compliance (GRC) has emerged. This dissertation explores whether Maltese credit institutions have embarked on these challenges and whether they understand the rationale underlying this holistic effort. The study outlines credit institutions' internal practices in comparison to a number of fundamental principles proposed in the GRC Model by the Open Compliance and Ethics Group (OCEG). Moreover, the study determines the involvement of front offices within local institutions. The answers to the research questions were obtained through an empirical study that gathers data by means of face-to-face structured interviews. Interviews were conducted with senior management personnel that held roles in the areas of risk management, compliance or internal audit. Additionally, where applicable, a couple of questions were also extended to front liners. The results acquired indicate that Maltese credit institutions are partly aligned with most of the practices proposed in this study even though the majority is not aware of the GRC model and its consequent competitive advantage. However, communication with the front office needs to be enhanced in order for institutions to fully support a collective awareness towards governance, risk management and compliance. Finally, the researcher came up with a number of recommendations that can further mitigate the gap between local institutions' current internal practices and those proposed in the GRC model by OCEG. Description: B.COM.(HONS)BANK.&FIN. 2012-01-01T00:00:00Z