Memorandum on a new financial architecture and new regulations

Mittnik, Stefan
Nell, Edward
Platen, Eckhart
Semmler, Willi
Chappe, Raphaele
The financial crisis is global and is deeply rooted in a decade-long misuse of the financial market for rent-seeking. The financial industry has largely abandoned its role as a service industry, supposedly charging reasonable fees for the services of spreading risk and allocating capital and credit. Instead it provides a market for corporate control –mergers and acquisitions– and a casino for betting on or hedging practically any kind of risk –the derivatives market–.


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The Financial Crisis in 2008 has revealed the need for a more advanced management of liquidity risk in financial institutions. This thesis aims to introduce and implement an advanced Fund Transfer Pricing (FTP) model into banking industries of the developing countries. The methodology of the FTP model, constructed in this research, measures the cost of a product’s cash-flows by splitting them into a deterministic and a stochastic component. The cost of the deterministic part is assessed as an equivalent of ...
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Citation Formats
S. Mittnik, E. Nell, E. Platen, W. Semmler, and R. Chappe, “Memorandum on a new financial architecture and new regulations,” ODTÜ Gelişme Dergisi, vol. 36, no. 1, pp. 253–269, 2009, Accessed: 00, 2021. [Online]. Available: