Hodgman, Donald R.
European Monetary Integration: Problems and Prospects
Die BankloyalitÃ¤t als Grundlage zum VerstÃ¤ndnis der Absatzbeziehungen von Kreditinstituten
Die optimale HÃ¶he einer Kontokorrentkredites
Vorgeschichte und GrÃ¼ndung der ersten Aktienbanken in Hamburg
Das Brasilianische Kreditwesen
Die Zehner-Gruppe (Dietrich Hartenstein)
Theoretische und empirische Untersuchungen zur lÃ¤ngerfristigen Geldnachfrage in der Bundesrepublik Deutschland (JÃ¼rgen Siebke)
Das kanadische Kreditwesen - Struktur und Tendenzen (A. Riedesser)
Finanzstrategie der Unternehmung - Beziehungen zwischen Kapitalgeber und Kapitalnehmer (Hans-Jacob KrÃ¼mmel)
Hodgman, Donald R.
"European Monetary Integration: Problems and Prospects"
In view of the problems explored in this report and those suggested by the additional areas mentioned above, it is our opinion that the E.E.C. plan for monetary and economic union will not be implemented on anything like its announced scale or timetable. With respect to monetary integration it seems likely that efforts to coordinate domestic monetary policies will continue to be limited to discussion and the exchange of information. The decision to narrow the band within which exchange rates Community currencies may move effective April 24, 1972 is likely to remain in effect for a period of relatively short duration measured in months rather than years. If launched the European Monetary Cooperation Fund will stress credit facilities rather than reserve pooling and will be largely a token effort. Foreign exchange controls will be continued and intensified in relations to capital movements and will be applied on a national rather than a Community basis. In short, significant progress in monetary integration within the Community appears most unlikely.
"Bank Loyalty as a Basis for Understanding Sales Relations of Banks"
The need for explanation and the permanence of abstract services, together with the object of the services, money, are the causes for the fact that the establishing of bank connections and the acceptance of problem-solving services face customers with difficult decisions. In view of their uncertain situation, the human element as the holder of preferences moves into the foreground as far as the banks' sales instrumentarium is concerned. It is primarily the personal contact between customer and employee that decides whether the learning process of bank loyality develops in favour of a bank or not.
If the human element, via the advisory function, is regarded as an integral part of otherwise colourless services of mixed banking institutions that require explanation, their qualitative competition in respect of service features and assortment policy takes the form of competition in personnel quality, especially in the case of problem-solving services. This is also true of the communications sphere, when decisions are made on the employment of impersonal advertising media or sales personnel. Economic considerations require that a salesman should be employed where customers are still in the initial phase of the process of learning bank loyalty. Locationpolicy deliberations must take into account whether, in addition to routine services, problem-solving services are to be included in the assortment of a new branch office; this will probably prove necessary above all when branch office policy is offensive and aimed at winning customers from competing banks. In price policy one must proceed from the assumption that, in principle, the price sensitivity of customers diminishes as bank loyalty grows; this is true, however, only up to the point where the increasing degree of economic knowledge and the economic power of the customers result in a network of banking connections within which shifts in business are oriented to price differences.
"The Optimal Level of Current Account Credit"
For the event that the time path of the balance on a current account can be forecast (at least approximately), the article shows when and to what extent a higher yield is attainable by means of withdrawal of an additional amount and putting it to some other fairly long-term use, and also by taking up a correspondingly higher credit on current account in periods of especially high money requirements.
Following ventilation of the relevant changes in interest and commission rates and, based on the foregoing, deliberations regarding the anticipatable change in yield which is dependent on the geometry of the curve for the balance on the account, a graphic-mathematical method applicable to any time path of the balance is developed for determining yield changes.
Then follows an analytical determination of the optimal level of current account credit for exemplary special cases: 1. uniformly declining balance, 2. periodical in-payment at the beginning and uniform outpayments during the period, 3. periodical withdrawal at the beginning and uniform in-payments during the period, and 4. sinusoidal path of the balance. A concrete numerical example shows that the optimum credit level and the additional yield attainable if that level is realized are quite substantial.
The article closes with a brief treatment of possible variations and other applications of the method.
"Antecedents and Foundation of the First Joint-Stock Banks in Hamburg"
In nearly all states of the German Confederation, banks with note-issuing privileges were founded in the course of the first half of the 19th century, that is, in the late Forties and Fifties, above all in the relatively new organizational form of joint-stock companies. This also happened in the free imperial cities- the only exception was Hamburg and there, up to the establishment of the Reichsbank, there were in fact no banknotes of private institutions issued.
There is no adequate explanation for this fact, which is remarkable not only from the standpoint of banking history. It is known, of course, that also the senate in office after 1848 was not exactly progressive, but on the other hand we are familiar with the strong liberal trend which found expression in the activities of the Commercial Deputation (predecessor of the chamber of commerce). The manner in which banking questions and bank reform were handled in this field of tension of political and economic interests is described in this study.
Most people at that time became abruptly aware of this rivalry between economic interests and (very closely related) political views when at the end of July 1856 two joint-stock banks were suddenly founded in Hamburg- the Vereinsbank and the Norddeutsche Bank, each with a stock capital of twenty million Bancomarks. In the light of their early history (articles, personalities of founders and Agitation surrounding their foundation), the two banks can be interpreted as alternatives in modern bank development as it were. On the one hand an institution that smacks of the Credit mobilier and presses for the issue of banknotes, on the other the conception of the modern commercial bank, to which incidentally the Hamburg merchants remarkably felt themselves more drawn from the very outset.
The article describes the institutional make-up of the Brazilian banking system, the present structure of which is largely attributable to the reform Legislation of 1964 and 1965. Since that time it has undergone a rapid and organically controlled upswing and with regard to its economic importance it is quite capable of standing up to an international comparison.
The supreme monetary authority is the National Monetary Council. The central bank serves the council as executive organ. The Banco do Brasil enjoys a characteristic special status; it is by far the biggest bank in the country and at the same time the fiscal agent of the government.
The private banking sector is built up on the principle of specialization and comprises three groups of institutions- the commercial banks, the investment banks and the financing companies that are typical of the Brazilian banking system.
In the public sector, a distinction must likewise be made among three groups of institutions: the development banks, by far the most important of which is the federal BNDE; the federal and state savings banks; the National Housing Bank with its affiliated institutions.
The government has instituted a number of measures to promote the capital market. In particular, tax concessions are granted for capital investment and current earnings. As the turbulent development on the stock exchange in recent years indicates, the market has honoured these efforts.