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The role of accounting (public-financial) with special emphasis on financial reforms and budgetary responsibility for the preparation of financial statements is increasingly becoming necessary and important to increase the economic development and financial stability of the country during governance. In order to have financial reforms, there must be responsibility in public accounting as well as in the analysis and financial reporting by the responsible staff at both levels. It is therefore important to have this cooperation in all areas of policy making, defining the responsibilities of the two levels. The purpose of this article is to show about accounting, reforms and budget responsibilities in the financial statements at both levels of financial-budgetary governance. The research was conducted through a questionnaire according to the practices of the OECD, the IMF and the World Bank. The questionnaire was compiled according to Likert scales and was distributed at the governing levels to the state of Kosovo, its completion was done accurately by attaching audited financial reports for each variable taken for study. The data for all variables were processed via the SPSS and R program, which allowed to draw conclusions and recommendations for all variables at both levels. To achieve the results, econometric tests and analyzes were used, such as: descriptive analysis, testing of two samples, analysis of testing of a dependent variable, etc. Based on the results, it is emphasized that there should be reforms for the safeguarding of public money, fair allocation of expenditures, securing of funds and that the responsibilities at both levels differ from the expectations that should occur in the accounting of financial statements.

RESUMENAnte la disolución de la Unión de Repúblicas Socialistas Soviéticas (URSS), la desaparición del Consejo de Ayuda Mutua Económica (came), y el florecimiento del neoliberalismo en un mundo globalizado y desregulado económica y financieramente, Cuba país dirigido económicamente por el Estado ha realizado una serie de reformas para concertar su tránsito lento y complicado hacia un nuevo paradigma de desarrollo capitalista que le permita sortear sus problemas internos y la crisis mundial. Estas transformaciones han acelerado su ritmo con la llegada al poder de Raúl Castro y el restablecimiento de relaciones político-diplomáticas con los Estados Unidos de América. A fin de demostrar esta situación, presentamos aspectos generales de Cuba, y analizamos los alcances a corto, mediano y largo plazo de las reformas económicas.AbstractIn the wake of the dissolution of the Union of Soviet Socialist Republics (USSR), the disappearance of the Council for Mutual Economic Assistance (comecon), and the flourishing of neoliberalism in a globalized and economically and financially deregulated world, Cuba, with a State-directed economy, has undertaken a series of reforms to begin its slow and complicated transition toward a new paradigm of capitalist development, which will permit it to sort out its domestic problems and deal with the global crisis. These transformations took off with the arrival of Raúl Castro to power and the reopening of political and diplomatic relations with the United States of America. To depict the current scenario, this paper introduces some general aspects of Cuba and analyzes them in the short-, medium-, and long-term scope of the economic reforms.

Financial reforms have great impact not only on Indian financial system but also on Indian economy as a whole. Three sectors of Indian financial system that are greatly influenced and witnessed substantial growth are banking, insurance, mutual fund. During the last decade, these three sectors have seen various developments. Mutual funds are investment avenues for the investors. Mutual fund is the pool of money of several investors to invest in financial investment such as stock, government securities and debentures. There are various sources of information like Television, internet, newspaper and also All India mutual fund association has published two booklets “Making mutual funds works for you” and “Selling mutual funds made easy”. These two publications translated into regional languages and distributed widely .To what extent do these sources of information influence the investors? The bankers or agents or financial advisers rendered services like providing knowledge about tax laws, new scheme, sorting out the problem, providing of consultancy. These are essential to strengthen or promote the mutual fund. Are the investors really satisfied with their services? If so, to what extent? Every investor has different investment avenues to invest in. There are some factors such as tax benefits, safety and liquidity, which influence behaviour of investors in selection of mutual fund (Prasada Rao and Vedantam Saikia, 2006). Do these factors influence behaviour of investors in the selection of mutual fund?, In this regard the present study is conducted to list the factors influencing investing in mutual funds in Mysore district.

We study how credit market deregulation and financial openness have changed corporate debt maturity. The evidence comes from a large panel of publicly traded firms in 38 countries in the post 1994 period. Reforms are measured with a comprehensive index that tracks six separate dimensions. We find that these transformations have lengthened debt maturity in advanced economies as expected, suggesting that in these countries corporate credit markets have become deeper. In emerging economies, the picture is more mixed: more international openness has led to shorter debt maturity. The effects of financial sector reforms on debt maturity differ depending on the type of reform.

The study employs the Granger causality test in a multivariate cointegration and error correction environment to examine the relationship between financial development and economic growth in Zimbabwe. Using annual data from 1980 to 2012, and after controlling for financial and monetary reforms, the study demonstrates a unidirectional causal relationship that runs from financial development to economic growth. The evidence shows that financial development; banking sector development in particular, is not a passive response to economic growth. Instead, it is a critical tool for accelerating economic growth. Policy implications of this evidence are that the banking sector in Zimbabwe must be supported with policies that encourage credit expansion and innovation to support economic growth. The equities market, on the other hand, requires more investor-friendly innovations and policies, especially with regard to trading efficiency and foreign investor participation in the primary market. In combination, these policy interventions should be able to magnify the positive effect of financial development on economic growth.

"Published online: 15 Aug. 2014", Using a panel of developed and developing countries and data for the period 1980 to 2005, we find that debt crises trigger financial reforms.We also show that (i) when general economic conditions deteriorate, financial reforms become more likely to take place; (ii) IMF-stabilization programmes and sovereign debt restructurings favour the implementation of financial reforms; and (iii) the quality of economic institutions strongly boosts financial reforms., COMPETE, QREN, FEDER, Fundação para a Ciência e a Tecnologia (FCT)

We study how financial transactions may respond to exogenous variation in trade opportunities not only directly, but also through policy channels. In more open economies, governments may find it more difficult to fund and enforce public policies that substitute private financial transactions, and more appealing to deregulate financial markets. We propose a simple theoretical model of such policy-mediated relationships between trade and financial development. Empirically, we document in a country panel dataset that, before the 2007–2008 crisis, financial market volumes were robustly and negatively related to the share of government consumption in GDP in regressions that also include indicators of financial regulation and trade openness, and we seek support for a causal interpretation of this result in instrumental variable specifications.

Are structural reforms growth enhancing? Is the effectiveness of reforms constrained by a country's distance from the technology frontier or by its institutional environment? This paper takes a new and comprehensive look at these questions by employing a novel data set that includes several kinds of real (trade, agriculture, and networks) and financial (domestic finance, banking, securities, and capital account) reforms for an extensive list of developed and developing countries, going back to the early 1970s. First-pass evidence based on growth breaks analysis and on panel growth regressions suggests that on average, both real and financial sector reforms are positively associated with higher growth. However, on several occasions, botched reforms resulted in growth disasters. More important, the positive reform-growth relationship is shown to be highly heterogeneous and to be influenced by a country's constraints on the authority of the executive power and by its distance from the technology frontier. Finally, there is some evidence that crises, defined as severe growth downturns, are associated with subsequent reform upticks. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

The paper offers a critical assessment of the financial reforms adopted or proposed at the European level. The reshaping of the EU institutional architecture and the adoption of the new Basel 3 rules should reduce the national margins of discretion that have up to now characterised supervisory practices, often leading to light touch supervision, and restrain the growth of bankarisation, hence excessive systemic leveraging. However, the limitations of a purely prudential approach to regulation may not be overcome by setting up new institutions and make prudential requirements more stringent. In addition, given unavoidable national banking specificities, more severe rulebooks homogenously applied across the EU countries could further worsen the inconsistencies of a one-size-fits-all rule. The criticisms directed at the new regulatory framework assume particular relevance in the EU, whose peculiar construction requires that the financial sector should not be permitted to jeopardise its critical fiscal equilibrium. This opens the way to the adoption of structural measures, as the one presented by the Vickers Commission on ring-fencing. Looking at the financial system as a whole, we argue that even these measures do not offer effective protection for the economy and tax-payers, and that much more radical interventions are needed. JEL Codes: G21, G28, E6, PSL Quarterly Review, V. 64, N. 258 (2011)

The financial reform is one of the most important reforms prescribed by the Washington Consensus. With its internal and external components, it occurs in the final stages of the process of economic liberalization. In this work, and after listing, briefly, the causes of financial liberalization, we are going to study in a second section financial development and bank performance in four countries of the MENA region: Tunisia, Algeria, Morocco and Egypt. In this context, we will explore some criteria for determining if the banking sector is performing as the level of intermediation margins, the state of the banking service, and so on. The third section will be subject to an assessment of financial liberalization since the start of reforms to the present day, while focusing on the impact of liberalization on the investment, savings, capital entry, and so on. Our conclusion will be in the form of recommendations aimed at showing that overall reforms, significant progress have been made in recent years but much remains to be done. Key words: Financial reforms, Causes, Banking performance, MENA, Liberalization effects.JEL: G28.

Стаття присвячена проблемам взаємозв’язку фінансових реформ 60-х років ХІХ ст. в Російській імперії із курсовою вартістю основної імперської грошової одиниці – рубля. Особливу увагу приділено заходам Міністерства фінансів у бюджетній сфері щодо стабілізації грошового обігу. Проаналізовано основні чинники, які негативно впливали на грошову систему імперії, зокрема складні економічні та політичні умови в Російській імперії, які обумовили фактичну безрезультатність грошової реформи 1862–1863 рр., яка проводилася міністром фінансів М. Х. Рейтерном. The article puts a light on the problems of the relationship of the financial reforms of 60-th years of the XIX century in Russian Empire with the exchange rate of the main imperial monetary unit – ruble. The general attention is putted to the actions of the Ministry of Finance in the sphere of budgeting, pointed on the stabilization of the money circulation. The main factors, negatively influencing on the monetary system of the Empire, in particular, the hard economical and political conditions in Russian Empire, which resulted in the ineffectiveness of the monetary reform of 1862-1863 under the lead of the minister of finance M.H. Reitern, are analyzed.

A number of countries have gone through banking crises since the early 1970s. This work links those episodes with the patterns of various financial reforms within those countries. As banking crises are endogenous, crisis exposures to major trading partners help identify the causality between crises and reforms. Consistent with the previous literature, the results of this work demonstrate that systemic banking crises reverse most financial reforms. However, they do so with various lags, whereas the impact of non-systemic crises is largely insignificant. The main results remain unaffected after numerous robustness checks. A rich set of policy implications is discussed which could help establish a growth-enhancing financial regulatory framework after banking crises.

As a result of debt enforcement problems, many high-productivity firms in emerging economies are unable to pledge enough future profits to their creditors and this constrains the financing they can raise. Many have argued that, by relaxing these credit constraints, reforms that strengthen enforcement institutions would increase capital flows to emerging economies. This argument is based on a partial equilibrium intuition though, which does not take into account the origin of any additional resources that flow to high-productivity firms after the reforms. We show that some of these resources do not come from abroad, but instead from domestic low-productivity firms that are driven out of business as a result of the reforms. Indeed, the resources released by these low-productivity firms could exceed those absorbed by high-productivity ones so that capital flows to emerging economies might actually decrease following successful reforms. This result provides a new perspective on some recent patterns of capital flows in industrial and emerging economies.

This paper analyzes reforms and adjustments in the context of the Euro and the global financial crises. Taking the perspective of the evolutionary approach to institutions, the formation of a new currency area is not unidirectional. The process leading to the euro is an example of a common upbeat and optimistic attitude to the formation of new institutions. Such a Panglossian attitude to policies may reflect built-in fiscal myopia, possibly both at the level of the principal [the policy maker] and of the agents [consumers and households]. Next, the paper reviews the evolution of institutions buffering the stability of unions in the aftermath of crises, where fiscal restraints and the allocation of significant bargaining clout to the Federal Center increase the stability of a union. The paper concludes with an overview of the challenges associated with finding the proper balance between financial integration and financial regulations.

Available online 8 June 2012, Using a panel of 62 countries for 1973-2005, we assess the impact of financial reforms on income inequality. We find that removal of policies towards directed credit and excessively high reserve requirements, and improvements in the securities market reduce inequality., COMPETE;QREN; FEDER;Fundação para a Ciência e a Tecnologia (FCT)

Time series panel data estimation methods are used to estimate the cointegrating equations for the demand for money (M1) for a panel of 11 Organization for Economic Cooperation and Development (OECD) countries for which consistent quarterly data are available. The effects of financial reforms are analysed with structural break tests and estimates for alternative sub-samples. Our results for the post-reform sub-samples show that the income elasticity of the demand for money has decreased and response to interest rate changes has increased.

Following their EU15 counterparts, the banking systems of Central and Eastern European (CEE) countries underwent extensive reform since the 1990s. In this paper we estimate the degree of bank market power during the periods of financial reform in each European country, and subsequently we analyze the political and institutional sources of bank competition distinguishing between the EU15 and CEE subgroups. A linear pattern in the relationship between bank competition and institutional strength is demonstrated for the EU15 group of countries, while for the CEEs this pattern is non-linear. Therefore, we suggest that relatively underdeveloped banking systems, in less advanced politico-institutional milieus, overall fail to benefit from reforms in their early stages. As a policy implication the results imply that a certain level of institutional maturity, combined with openness to foreign investors, is a precondition for reforms aiming at enhancing competition and efficiency of banking markets.

In the early 1990s the World Bank launched the Regional Program on Enterprise Development in several African countries, a key component of which was the collection of manufacturing firm-level data. In this paper the authors review the research based on the data sets generated by these and subsequent firm surveys in Africa, with a special view to what they think are the most important policy implications. The authors survey the research on the African business environment, focusing on market size, risk, access to credit, labor, and infrastructure. They cover the research on how firms choose to organize themselves and how firms do business. They review the research on firm performance, including firm growth, investment and technology acquisition, and exports. They conclude with an extended discussion of the policy lessons.

The dissertation comprises four chapters focusing on issues concerning policy re-forms and monetary policy in Zambia. Chapter 1 briefly outlines the theoretical foundations for the reforms undertaken in Zambia since the mid 1980s and the process thereof. The main issues addressed were the removal of interest rate and credit controls, exchange rate devaluation and the use of indirect instruments in implementing monetary policy. Monetary policy also began to focus more on stabilisation through bringing the inflation rate down. The review indicates that although the control of inflation is still difficult and figures are still in double digit levels, annual inflation rates have reduced significantly compared to levels achieved in the early 1990s. The nominal exchange rate has been depreciating prompting increased intervention from the central bank. Despite the increase in nominal interest rates, real deposit rates have remained negative. Chapter two analyses the monetary transmission mechanism in Zambia. Vector auto -regressions are estimated for the pre-reform and post-reform periods. Variance decompositions and impulse response functions are examined to see whether there are any changes observed in the monetary transmission mechanism after the reforms. Different systems are estimated in each period using alternate variables as measures of monetary policy shocks. The results show that contractionary monetary policy is followed by a fall in both output and prices. When compared, results from the two estimation periods show that both the responsiveness of prices and output to policy shocks and the magnitude of their forecast error variance decompositions explained by these variables have increased since the reforms. The results also show that the impact lags have reduced. There is evidence of the bank lending channel both before and after the reforms. Of the mechanisms estimated, the exchange rate mechanism seems to be the most important mechanism for transmission of policy shocks to both prices and output during the post-reform period. Chapter three investigates whether monetary aggregates have useful information for predicting inflation other than that provided by inflation itself. Fore-casting experiments are conducted to see whether monetary aggregates and selected financial sector variables are useful in predicting inflation. We perform forecasting experiments and compare the performance of different models. We also estimate an error correction model of inflation. Of the monetary aggregates considered, M2 contains the most information and its growth rate significant in the inflation model. The external sector variables are also important. The results indicate that inflation exhibits a high level of inertia suggesting the presence of implicit indexation and significant inflationary expectations possibly due to past fiscal effects and low policy credibility. Overall, the foreign sector variables seem to be more important for movements in prices than monetary aggregates even in the long run. The importance of the exchange rate to stabilisation policy in Zambia is underscored by the results obtained in chapters 2 and 3. In this paper, we pursue this idea by investigating the effect of central bank intervention on ex-change rates in Zambia. Using a GARCH (1, 1) model of the exchange rate, we simultaneously estimate the effect of cumulative intervention on the mean and variance of the exchange rate. We find that central bank intervention in the foreign exchange market increases the mean but reduces the variance of the exchange rate. The explanation leans towards speculative bandwagons and a 'leaning against the wind' strategy. Although there is no attempt to distinguish through which channel intervention operates, we argue that this is more likely to be a signalling effect rather than a portfolio balance effect. This effect operates mainly through the supply and demand of foreign exchange in the market.

This paper focuses on bank rescue packages and on the behaviour of troubled banks in light of rescue offers. A puzzling feature of experience with banking crises is that in many cases policy authorities make offers of bank rescue, and banks are reluctant to accept these offers. We study situations in which regulators have decided to offer bank rescue plans, and we show that a combination of factors, including bankers' reputational concerns, can explain banks' potential reluctance to accept offers of recapitalization.

While the Israeli stabilization of 1985 has received significant attention in previous work, much less is known about the process of financial opening and liberalization which began shortly afterwards. In contrast to the disinflation policy of 1985, the process of financial liberalization that started in 1987 proceeded in a slow and gradual mode. No official announcement was made about either the precise policy measures or the timetable for the process. As a result of these and other political economy factors, the process has not been completed and there are no strong incentives for policy-makers to further deepen the reforms at the present time. This paper discusses the main elements of financial liberalization in Israel and draws implications that could be relevant for financial opening policies in other countries.

Financial development has a major role in the sustainable economic growth of Central and Eastern European emerging countries, particularly after their political and structural changes. These changes required a reform of financial sectors of these countries, such as capital market development, banking privatisations and trade openness (TO). Moreover, emerging countries have opened too quickly to foreign competitors. Importantly, TO without financial openness is unlikely to contribute financial development. Therefore, this paper deals with banking sector analysis of the CEE emerging countries, which are still more bank based. Empirical results will show as which macroeconomic variables affect banking sector development in CEE countries. Different indicators of banking sector development will be used. Panel technique will be used to analyse panel data from 16 CEE countries during the period 1994–2007. Parameters of the panel data model will be estimated using GMM method.

The paper investigates those aspects of economic transformation and long-term economic development where financial institutions can and should make a contribution. It also investigates the financial services industry as a sector and tries to point out the conditions which can enable financial firms to perform these tasks properly. Banks, or any other financial firms, will become competitive and innovative only if the market conditions force them to do so. On the other hand, they will be unable to compete if they themselves do not have proper access to resources, production technologies and the appropriate infrastructure, and a supportive legal environment to carry out the necessary product and technology innovation.