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We study the run on the German banking system in 1931 to understand whether depositors anticipate which banks will fail in a major financial crisis. We find that deposits decline by around 20% during the run. There is an equal outflow of retail and nonfinancial wholesale deposits from both failing and surviving banks. In contrast, we find that interbank deposits almost exclusively decline for failing banks. Our evidence suggests that banks are better informed about which fellow banks will fail. In turn, banks being informed allows the interbank market to continue providing liquidity even during times of severe financial distress. [ABSTRACT FROM AUTHOR]

We characterize the interaction between banks' liquid assets purchases and deposit issuance decisions. Using global games, we derive a liquidity multiplier : the amount of deposits a bank can create when endowed with one additional unit of liquid asset to maintain a given level of liquidity risk. In our central theorem, we prove it is larger than unity. This entails that banks have a special role in enhancing liquidity provision, "multiplying" liquid assets into a larger quantity of deposits. Our theory has implications for banks' balance sheet choices, the pricing of liquid securities, and the role of public liquidity provision. [ABSTRACT FROM AUTHOR]

By studying the relationship between shadow banking activities of commercial banks in China and the pricing of deposits and loan interest rates, we find that shadow banking promotes the liberalization of commercial bank interest rate pricing. Further research finds commercial banks' shadow banking businesses improve their liquidity. Compared with state-owned banks, the development of shadow banking promotes the liberalization of the deposit and loan interest rate pricing of non-state-owned banks to a greater extent. Therefore, we believe China should support the development of shadow banking to promote the liberalization of interest rates and monetary policy transformation. [ABSTRACT FROM AUTHOR]

By utilizing China's 2016 Implementation Plan for the Specific Rectification of Internet Financial Risks as an exogenous shock, we employ a difference-in-differences identification strategy to investigate the impact of FinTech regulation on banks' risk-taking. Our findings indicate that FinTech regulation strengthens banks' deposit franchises and funding liquidity. As reliable and interest-rate-insensitive funding sources, higher deposit franchises weaken banks' incentives for risk-taking. Further analysis, conducted to control for the potential interference of other policies, confirms the stable incremental effect of FinTech regulation. Moreover, we find that FinTech regulation tends to benefit banks with higher capital buffers and smaller sizes from a triple difference (difference-in-difference-in-difference) analysis. By focusing on the external effects of FinTech regulation, we aim to shed light on how regulatory gaps impact the formal financial system and highlight the importance of effectively regulating emerging financial entities. [ABSTRACT FROM AUTHOR]

Leveraging branch‐level data on bank deposits, we provide evidence of a negative impact of branching restrictions on payout ratios, which occurs only for banks with a low charter value, as proxied by the market‐to‐book ratio. The results for the market‐to‐book ratio extend to the Lerner index, the return on assets, and the Z‐score, suggesting that risk‐shifting incentives drive our results rather than signaling incentives or agency costs. Our results are robust to different proxies for banking competition and identification strategies, and bootstrap simulations suggest that our results are not due to confounding factors. [ABSTRACT FROM AUTHOR]

We investigate how local deposit shocks affect bank lending in nonaffected markets for the case where banks mostly neutralize that shock. Colombian banks in oil-producing municipalities experienced deposit outflows after the collapse of oil prices in 2014–2015. Following the shock, we observe that the affected banks increased their credit to non-oil-producing markets by reducing the price of consumer loans and by using market power in both commercial and consumer loans. This paper contributes to understanding how multimarket banks transmit local deposit shocks to other geographic markets to mitigate deposit outflows. [ABSTRACT FROM AUTHOR]

This paper provides evidence on how bank performance and strategies vary with the degree of bank internationalization using data for 113 countries during 2000–15. Bank internationalization is associated with lower valuations and lower returns on equity. After the global financial crisis, international banks were revalued particularly if they had stable funding in the form of deposits and if they had more generous deposit insurance coverage. For international banks headquartered in developing countries, bank internationalization is related negatively with the cyclicality of their domestic credit growth with respect to home country GDP growth, smoothing local downturns. In contrast, if the international bank is from a high-income country investing in a developing country, its subsidiary bank lending is relatively procyclical, which can be destabilizing. [ABSTRACT FROM AUTHOR]

This study examines the determinants of profitability of deposit banks in Turkiye taking into account differences in the ownership structures of public, private domestic and foreign-owned banks. The aim of the study is to analyse whether the factors determining profitability change depending on the managerial differences that the ownership structure may entail. A seemingly unrelated regression method with monthly data from 2010 to 2022 is used for this purpose. Our findings suggest that the real effective exchange rate, inflation, and non-interest income variables have common effects on profitability regardless of bank ownership. However, the bank capital ratio, bank size, loan to deposit ratio, and economic activity affect profitability differently across bank ownership types. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of four historical tropical storms on the Colonial Bank's operations in the British Caribbean between 1922 and 1927. By employing a high-frequency data set of bank transactions, this study reveals how these severe shocks influenced the banking activities of clients. The findings reveal a multifaceted and significant impact of tropical storm strikes on the banks' operations, particularly a surge in borrowing via overdrafts of current accounts. Moreover, the study reveals the multifaceted nature of such storms' impact on the bank's functionality, with affected branches demonstrating an uptick in deposits and savings as a strategy to mitigate funding shocks. The results of the econometric analysis indicate that the impact of such storms on banks' functionality during the early 20th century was significant and multidimensional. It highlights the critical role that the Colonial Bank plays in facilitating recovery from these devastating events and contributes to the existing literature by studying multiple shocks at different geographical locations and time frames. [ABSTRACT FROM AUTHOR]

The Newcomb-Benford law states that the frequency of different leading significant digits in many datasets typically follows a specific distribution. Deviations from this law are often a sign of data manipulation. There has been no established method to test whether the non-reliability of observations depends on some potential explanatory variables. A novel method to address this issue is presented. If a leading significant digit has a higher observed frequency than implied by Benford's distribution, such observations are particularly likely to be non-reliable. Dividing the frequency in Benford's distribution by the observed frequency of the same leading significant digit yields an ordinal explained variable. The method is applied to bank deposit data collected in interviews. Many interviewees have provided rounded data, which may be a problem. Answers seem unreliable if the respondent belongs to the age group 51–65, has only primary education, does not live alone, and lives in a city. [ABSTRACT FROM AUTHOR]

The study presents a review of the Geology of the Senegalo-Mauritanian (S-M) sedimentary basin with a glance on stratigraphy, tectonic evolution, and integrated petroleum systems. The S-M basin is a typical Mesozoic-Cenozoic passive margin which opened westward from the Northwest African craton into the Atlantic Ocean. The basin overlies a Paleozoic sequence which represents part of the Taoudeni basin. Rifting and tectonic movements associated with the breakup of Gondwana and the formation of the Atlantic Ocean began in the Triassic and have led to a subdivision of the basin into three stages: pre-rift (Proterozoic-Paleozoic), syn-rift (Late Triassic-Middle Jurassic), and post-rift (Middle Jurassic-Present). Pre-rifting phase, made of sediments deposited between the Precambrian and Devonian, is mainly continental detrital rocks. The main deposits of the syn-rift stage are Triassic evaporites and Jurassic volcanic intrusion from the Central Atlantic Magmatic Province (CAMP). The post-rift segment consists of an Upper Jurassic-Lower Cretaceous carbonate platform overlain by a predominantly progradation and transgressive Cretaceous-Tertiary clastic sequence, up to 12,000 m thick in places. The S-M basin exhibits oil and gas potential. Indeed a total of three petroleum systems exist in the basin: the Lower Paleozoic Petroleum System (LPPS), the Subsalt Petroleum System (SSPS), and the Cretaceous-Tertiary Petroleum System (CTPS). Previous source rock analyses have shown a good quantity of total organic content (TOC) and type I kerogen; type I, II, and III for the LPPS and CTPS, respectively. The main reservoirs comprised fractured sandstone of Cambrian to Ordovician and Devonian, with good porosity up to 20%, karstified Oligocene limestone, and Maastrichtian and Miocene sandstones. The primary seals include the Upper Cretaceous and Tertiary marine mudstone and shale for these petroleum systems. Both stratigraphic and structural traps were derived from seismic profiles and included growth faults, slope truncation, turbidite-related traps, salt-related structures, carbonate bank deposits, and structures related to volcanism. Preserved extensional structures before the rifting and especially normal faults along the Paleozoic section have served as migration pathways for hydrocarbon in the Southern sub-basin. [ABSTRACT FROM AUTHOR]

A simple model is developed to analyze the effects of social media use by a bank's uninsured depositors. While social media increases the likelihood of bank runs, it can be ex-ante beneficial to a bank by raising its shareholders' equity. Social media enhances monitoring of a bank's financial condition, thereby giving uninsured depositors a valuable option to withdraw early and avoid potential losses in states when a bank is likely to be insolvent. Recognizing this option, uninsured depositors require a lower promised interest rate that reduces the bank's cost of funding at the expense of a greater liability for the bank's deposit insurer. [ABSTRACT FROM AUTHOR]

This paper provides the first evidence of positive bank-to-bank spillovers. I show that geographic linkages between banks that engage in home lending in the same geographic region transmit positive shocks from one bank to another. I exploit shocks to the deposit base of banks located in counties experiencing shale oil booms and show that a nonshocked bank in a nonboom county expands lending more if its linkages have greater exposure to shale booms. Results show that the shock exposure of linkages has a positive impact on home prices of nonboom counties, and nonshocked banks located therein respond with increased lending. [ABSTRACT FROM AUTHOR]

This paper studies the effect of deposit insurance on depositor behavior. Our theoretical framework integrates insights from public and financial economics and predicts that (1) deposit insurance induces bunching at the threshold in the deposit distribution and (2) an increase in the insurance threshold promotes deposit growth, particularly higher for individuals bunching at the initial limit. We exploit a large and unexpected increase in the Colombian insurance together with monthly depositor-level records from a major bank to test these predictions. We validate the existence of bunching in deposits and quantify the heterogeneous effect of deposit insurance on individual deposit growth. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Bank-created money, shadow-bank money, and Treasury bonds all satisfy investors' demand for liquidity. We measure the quantity of these forms of liquidity and their corresponding liquidity premium in a sample from 1934 to 2016, estimating the substitutability of these assets and the liquidity per unit delivered by each asset. Treasuries and bank transaction deposits are imperfect substitutes, in contrast to perfect substitutes found by Nagel (2016). Bank and nonbank non-transaction deposits are closer substitutes for Treasuries. Our empirical results inform theories of the monetary transmission mechanism running through shifts in asset supplies and models of the coexistence of the shadow banking and regulated banking system. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

We test whether organizational risk management matters to bondholders of U.S. bank holding companies (BHCs), and find that debt financing costs increase when the BHC has lower-quality risk management. Consistent with bailouts giving rise to moral hazard among bank creditors, we find that bondholders put less emphasis on risk management in large institutions for which bailouts are expected ex-ante. BHCs that maintained strong risk management before the financial crisis had lower debt costs during and after the crisis, compared to other banks. Overall, quality risk management can curtail risk exposures at BHCs and result in lower debt costs. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Considering the trend toward microfinance institutions (MFIs) commercialization that fundamentally reshapes their capital structure, this meta‐analysis, by synthesizing data from a wide range of studies, aims to investigate the impact of different sources of finance on the financial sustainability of MFIs and determine the optimal order in which these sources should be utilized. In this study, 166 effect sizes were obtained from 64 studies. Overall, the findings indicate that equity and deposit financing enhance financial sustainability positively, whereas debt and donation financing exhibit an inverse relationship. However, variations exist based on the MFI charters. While equity financing adversely affects the financial sustainability of MFI banks, it also exerts positive effects on other types of MFIs. Similarly, deposit financing negatively affected MFI NGOs. Regarding financial sustainability proxies, debt and equity financing affect financial self‐sufficiency (FSS) and operating self‐sufficiency (OSS), unlike donation and deposit financing. Equity financing has a positive effect on OSS but a negative effect on FSS. In contrast, debt financing shows the opposite trend. The meta‐regression further reveals that, as capital structure variables, the sources of finance do not significantly explain the variance in MFIs' FSS but do so for OSS. These findings have implications for managers and for future research. [ABSTRACT FROM AUTHOR]

The Late Pleistocene Marine Isotope Stage (MIS) 5 – MIS 4 transition (at ca. 75 ka) is globally known to correspond to a period of strong cooling and sea‐level lowering. Terrestrial records indicate the transition had a large impact on terrestrial environments, but the impact on coastal and shallow‐marine areas is poorly documented due to a lack of well‐dated, continuous archives caused by erosion during succeeding glacial lowstands. The extensive offshore deposits of the Brown Bank Formation in the southern North Sea yield a valuable record of this transition in a shallow‐marine environment. We show that the southern North Sea experienced subarctic marine conditions with a high input of terrestrial material during the MIS 5–4 transition. These continued marine conditions, which have not been described earlier for northwestern Europe, show that sea level remained relatively high, and lagged cooling on land inferred from lipid‐biomarker palaeothermometry. The time‐lag between terrestrial cooling and sea‐level fall created a sediment preservation window during the onset of MIS 4 in a shallow‐marine environment. Our record captures changes in both the terrestrial and shallow‐marine environments, and allows for linking terrestrial and marine records of the MIS 5–4 transition in NW Europe. [ABSTRACT FROM AUTHOR]

In this research, based on the historical statistics of the deposits of a private bank (Ansar bank before merging) into four different categories (funds), we are looking for the results and prediction of bank deposits in each of the categories, using machine learning prediction methods for the first time in internal studies. In this forecasting method, the superiority of the machine learning method is confirmed due to the examination of all the time changes of the data in a large volume (from the beginning until now). Forecasting the above deposit statistics for bank decision makers in the future according to the economic conditions can be the basis of macro banking decisions. The results show that partly stable long-term deposit and stable deposit will take a downward trend in the future in the Ansar bank, and unstable and interest-sensitive deposit will also take a downward trend. Qarzol-hasane deposit has an upward trend, although it has always fluctuations similar to sin-cos fluctuations. It should be noted that this machine learning prediction method is a stable method without sensitivity analysis and has high reliability. According to this research, paying attention to long-term and stable deposits as well as Qarzol-ha-sa-ne is of great importance in the bank's budget. [ABSTRACT FROM AUTHOR]

We analyze the role of retail central bank digital currency (CBDC) and reserves when banks exert deposit market power and liquidity transformation entails externalities. Optimal monetary architecture minimizes the social costs of liquidity provision, and optimal monetary policy follows modified Friedman rules. Interest rates on reserves and CBDC should differ. Calibrations robustly suggest that CBDC provides liquidity more efficiently than deposits unless the central bank must refinance banks and this is very costly. Accordingly, the optimal share of CBDC in payments tends to exceed that of deposits. [ABSTRACT FROM AUTHOR]

Motivated by the successful usage of machine learning around computer science and its wide acceptance from the finance literature, we utilize monthly data spanning the period 2008–2018 for the Euro area peripheral countries, in order to embark on a two-fold mission. First, to construct short-term prediction models for bank deposit flows in the Euro area peripheral countries, employing machine learning techniques. Second, to examine whether textual features enhance the predictive ability of our models. From the variety of models tested, we find that Random Forest models including both textual features and macroeconomic variables outperform models including only macro factors or textual features. Monetary policy authorities or macroprudential regulators could adopt our approach to timely predict potential excessive bank deposit outflows and assess the resilience of the whole banking sector in the Euro area peripheral countries. [ABSTRACT FROM AUTHOR]

This research explores the link between stock markets and banking deposits in South Asian (Pakistan, India, Sri Lanka, Nepal) countries. This study empirically examines the systemic risk potential of financial institutions in South Asia using current systemic risk statistics. Yearly data on stock prices and banking deposits from January 2000 to December 2020 were analyzed using a two-stage process. In the first phase, we measure VaR (value at risk), and in the second step, we measure the DCC GARCH model for our empirical analysis. The study findings reveal systemic risk spillover between the stock markets of South Asian countries and the relevant country's banking system deposits. The policymakers can use our study findings to create a more sustainable financial sector. [ABSTRACT FROM AUTHOR]

In the Turkish financial system; public, private and foreign capital deposit banks are classified according to their ownership structures. After the banking crises in the financial system, the share of foreign capital banks in the Turkish banking sector has increased significantly. Banks are the most important funding institutions for the real sector, and it is known that a crisis in the banking sector would seriously affect the real sector. The real sector's continued investments are important for the continuation of the country's economic growth and development. In this respect, the financial performance of banks in the Turkish banking system is also important. In the study, the financial performances of the top five private and foreign capital banks, which have a significant place in terms of asset size, are compared. Asset quality, liquidity, profitability and capital adequacy ratios are used as benchmarks and annual data for 2012-2022 are used as the analysis period. When evaluated on the basis of the ratios used in the study, no significant difference is found between the two groups in terms of profitability, no significant difference is found in terms of Total Loans/Total Assets and Non-Performing Loans/Total Loans in terms of asset quality, while a significant difference is found in favor of private capital banks on the basis of Total Loans/Total Deposits ratio. While a significant difference is found in favor of foreign capital banks in terms of liquidity ratios, it is concluded that foreign capital deposit banks performed better in terms of Equity/Total Assets ratio among capital adequacy ratios. [ABSTRACT FROM AUTHOR]

The activity of the stock exchange has increased significantly in the country. The expansion of the segment of private investors is especially noticeable. This directly depends on the economic stability in the country, the level of inflation, and the growth of real incomes of the population. Therefore, the focus should be on stability in the country, improving the well-being of the population, economic growth, the monetary system, and the activity of business entities. The pandemic also influenced the growing interest of individuals in buying securities. Private investors began to consider alternative sources of bank deposits, ways to generate additional income. In addition, the digitalization of brokerage services provided everyone with access to investing. Since 2020, second-tier banks have received permission to conduct brokerage activities, which has increased their activity. Now individual banks of the country (Halyk Bank, Bank Center Credit) can sell securities through mobile applications. Now work is underway to increase activity in the securities market not only of large companies, but also of small and medium-sized businesses. Therefore, it is very important that the state at the initial stage carries out systematic work to intervene, support and regulate the securities market. The article discusses the need to develop the stock market and issues of government regulation in the country. The importance, main goal, tools and methods of implementing state regulation of the securities market are indicated, and current problems are identified and ways to solve them are proposed. [ABSTRACT FROM AUTHOR]

This study focused on the determinant of macroeconomic variables on the non-performing loans of banks in the sub-Saharan African region using the fixed effect panel regression method. Data from twenty-two SSA countries from 2010 to 2021 were used. The results from the study provide a general indication that the macroeconomic environment matters a lot for non-performing loans within the banking sectors of SSA countries. It is therefore recommended that banks in the SSA sub-region learn to develop adaptive mechanisms to address the effects of macroeconomic shocks on their loan policy. These measures may come in the form of well-diversified portfolio systems that will improve banks' hedging. [ABSTRACT FROM AUTHOR]

Present study is conducted to know the influence of bank-specific and macro-economic variables on bank performance in Indian context. A comparison has been made between public and private sector banks. For the purpose of the study, we have selected 32 commercial banks. Secondary data has been collected from the annual reports of the respective banks for the period 2010-11 to 2020-21. Panel regression model have been employed for the study. Empirical findings show that high operating expenses are not appropriately used to manage financial performance in sample banks especially for public sector banks. Study results also show that credit risk has an inverse association with financial performance. Leverage is negatively related to financial performance for public sector banks only. Deposit ratio, size and Annual GDP growth rate positively related to financial performance in all sample banks. While exchange rate has negative impact on the financial performances. The results show that different bank-specific and macro-economic variables influence differently with bank performance in public and private sector banks. The findings of the study will help policymakers and other stakeholders especially in the financial sector to understand various macro-economic and bank-specific variables impact on bank performances. [ABSTRACT FROM AUTHOR]

In emerging countries, deposits play an important role in banks' total funding; hence, depositor discipline may significantly impact banking performance and financial system stability. This paper investigates depositor discipline before and after Vietnam's 2008–2011 banking crisis when depositors had little experience regarding bank bailouts and the amount of deposit insurance was limited to a low cap. The study points out that before the crisis, the level of deposit financing in banks depended on both the interest rates offered and on measures of banks' risk‐taking. After the crisis, given that the Vietnamese government prevented all bank failures to ensure economic, political, and social stability, depositors still react to interest rate changes, but substantially less to risk. This suggests that they have learned that their deposits are safe regardless of the risk the bank is taking. [ABSTRACT FROM AUTHOR]

Banks greatly enhance an economy's ability to move financial resources around. However, many deceitful events have interfered with the way Deposit Banks operate. The goal of the bris study was to use a quantitative research methodology based on the ex post facto technique and positivist research philosophy to examine the consequences of deceit in Kosovo. The impact of deceit on Deposit banks was predicted by the study using Ordinary Least Square (OLS) and data from the Central Bank of Kosovo annual reports for 2012 to 2022. The results showed that the overall level of deceit had no discernible impact on the performance of Deposit Banks. In contrast, Bank Efficiency in Kosovo was positively influenced by the total number of reported incidents and the total number of staff members implicated in deceit. As a result, the study found that deceit in the banking industry negatively impacted Bank Efficiency and suggested that the Central Banks of Kosovo enact more regulation and oversight to curb the growing rate of deceit. [ABSTRACT FROM AUTHOR]

Savings are one of the highly important components that may be used to create capital and invest to increase production, employment, income, and other socio-economic factors that contribute to the development of a nation. However, domestic savings are also thought to be crucial for covering unforeseen expenses for individuals, families, and businesses. The portion of current income that is deposited in a bank account or other financial institution for possible future use rather than being used for immediate consumption is known as savings. Within the context of the economic field, savings are a crucial macroeconomic indicator that must be examined at both the individual and household levels. In an emerging market like India, the majority of people are engaged in the unorganized sector, where low and uncertain wages are considered the main features of this sector, and the result is that MPC is greater than MPS. Elevated rates of inflation and consumption also have the negative effect of reducing savings and capital formation. This paper aims to examine the socioeconomic limitations that Delhi residents experienced during the inflationary period. In order to investigate the impact of factors like family size and income, a questionnaire was created. 50 respondents were included in the sample. The respondents' ratings were analyzed using regression analysis. The findings indicate that inadequate savings are associated with low income. [ABSTRACT FROM AUTHOR]

Households are the main contributors to the domestic savings of the country. The income received by the households can be invested in productive purposes which will help in the growth of the economy. The changing nature of the consumption expenditure highlights the changes in the consumption pattern of the households. The social and economic changes make the household preference their income for consumption, saving, and investment. The paper tries to analyze household savings which have a major share in gross savings. The major share of household savings goes to bank deposits, loans and financial liabilities. [ABSTRACT FROM AUTHOR]

Cambodia is one of the first two countries that adopted a retail central bank digital currency (CBDC) in October 2020. The design of the CBDC, called the Bakong, is a bit unique. We find a few design flaws that could potentially damage the central bank and then the Cambodian economy as a whole. We show some key statistics from our own survey in 2022 to support our arguments. The Bakong is offered in two currencies, the Khmer Riel (KHR) and the US dollar (USD), as Cambodia has been highly dollarized. We discuss theoretical predictions for the CBDC based on three kinds of substitutes: paper money, bank deposits, and foreign currencies. The third one is specific to the Bakong. Unlike a typical local currency CBDC, the USD Bakong may substitute for the KHR more. Moreover, it has been announced that the retail Bakong is legally not a liability of the central bank, but from the viewpoint of the underlying technology and economics, it is a central bank liability. [ABSTRACT FROM AUTHOR]

We study the Ricardian Equivalence Theorem in the presence of a reserve requirement. Banks pay depositors the deposit rate and receive the borrowing rate on loans. Equivalence fails because the reserve requirement drives a wedge between the deposit and borrowing rates implying that government faces a different intertemporal tradeoff than savers. A tax cut financed by an increase in government debt causes an increase in savings but only increases the supply of loanable funds by a fraction because of the reserve requirement. This causes interest rates to rise and consumption to fall. We also show that if the central bank pays interest on reserves at the borrowing rate, the various rates are equal, however, equivalence still fails. The reason is that future taxes to pay down the debt must be higher for the central bank to pay interest and consumption will fall in response. [ABSTRACT FROM AUTHOR]

• We study the effectiveness of helicopter money in the form of a central bank digital currency (CBDC) • We compare traditional fiscal and monetary stimulus, quantitative easing, and the issuance of a CBDC credited to households or firms, by means of a stock-flow consistent model of a growing open economy. • Issuing a CBDC by expanding the central bank's balance sheet can have a durable impact on GDP and it allows for the activation of a new transmission channel. • A CBDC might reduce the demand for bank deposits and, even more crucially, for bank loans, thus creating challenges for financial stability. We study the effectiveness of helicopter money, once a thought experiment that is now a feasible option given new digital technologies. We consider the effects of central bank digital currencies (CBDC) from a theoretical point of view, by means of a stock-flow consistent model of a growing open economy. We compare the effectiveness of this tool with that of traditional fiscal and monetary policies. We find that issuing a CBDC by expanding the central bank's balance sheet can have a durable impact on GDP and crucially, it allows for the activation of a new transmission channel, which depends on the sensitivity of investment and of the interest rate to firms' leverage. But it might reduce the demand for bank deposits, and even more crucially for bank loans, thus creating challenges for financial stability. [ABSTRACT FROM AUTHOR]

Exactly what form the money of the future will take remains an open question. Central bank digital currencies (CBDCs), tokenised deposits and stablecoins have been discussed as potential candidates. This paper argues that reserve-backed tokens (RBTs) — backed solely and fully by central bank reserves — also represent a credible solution. RBTs pose a unique combination of benefits. Notably, they are safer than, and can crowd out, the unstable breeds of stablecoins. They can adopt a more flexible design than retail CBDCs and thus foster greater competition and innovation. Furthermore, compared with bank deposits, RBTs are immune to runs and are unencumbered by legacy features. Naturally, there are attendant risks and unknowns, but this paper argues that careful design and gradual rollout would help harness the benefits of RBT while mitigating the risks. [ABSTRACT FROM AUTHOR]

We examine the impact of Islamic religiosity, based on an area at the province level, on the amount of depositor funds per capita in Islamic banks. We rely on the religious actors (per capita mosque, per capita Islamic school, and per capita Islamic seminary school) and religious practice (per capita hajj) to capture the religiosity level by province in 33 provinces in Indonesia from 2013 to 2018. We performed pooled least square regressions to test our hypothesis. 2SLS and 3SLS procedures were selected to tackle endogeneity issues, i.e., simultaneity and omitted variable bias. The relationship between religiosity and the amount of depositor funds has a simultaneity problem since the decision to deposit money in a bank increases the funds available to the society. A higher supply of funds could be used not only to increase the quantity of religious actors, but also to enhance the quality of religious actors and religious practices. Consequently, the religiosity level of the people will be improved since both religious actors and religious practices shape the behavior of the people by promoting religious ideas, norms, and values. We find that Islamic banks in the stronger religiosity area receive more deposits from the customers. Our result is robust to endogeneity problems. Our study has an important practical implication since it allows businesses, including Islamic banks, to develop effective strategies when entering or expanding business in a new area, especially in the absence of the survey data of individuals' religiosity in certain areas. [ABSTRACT FROM AUTHOR]

This study aims to validate a new model that explains the switching intentions of banking customers toward crowdlending based on the perceived investment value, the quality of the crowdlending platform, and two comparative technology adoption factors. The empirical investigation was conducted by conducting an online survey of a sample of 201 potential and actual users of two crowdlending platforms in the Kingdom of Saudi Arabia. The findings of the study highlighted that the switching intentions of potential crowdlenders was affected by perceived emotional and economic investment values, which may in turn be influenced by the relative advantage of this kind of investment and the platform's information quality. The perceived relative complexity, however, had no significant impact on perceived investment value. This study extends our body of knowledge about the adoption of FinTech and specifically crowdlending by considering that the perceived investment value may include an emotional dimension, something that has been ignored in prior research. Finally, this investigation highlights the need for crowdlending platforms to employ communication strategies based on the notion of promoting the hedonic and economic values of this kind of investment and its relative advantages over traditional forms of investment, namely banking deposits. [ABSTRACT FROM AUTHOR]

Using a sample of 7,919 banks from 30 OECD countries over 1995–2019, we examine the impact of low interest rates on banks' net interest margins. Our results confirm a positive relationship between interest rates and interest margins, which is stronger in a low interest rate environment. In more concentrated markets, however, interest margins are less sensitive to the level of interest rates, as interest rate sensitivities of income and expense margins match. But our results also suggest that the effect of market concentration on the link between interest rates and interest margins is weaker when interest rates approach zero. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This paper investigated whether a bank's popularity and depositors' fear of Google search volume could affect bank deposits and credit. Design/methodology/approach: The authors used two different quarterly data from Google Trends and banking data from 2012 Q1 to 2020 Q1. Based on available data, Google Trends data start from 2012. The authors exclude data after 2020 Q1 because the Covid-19 pandemic arguably increased the volume of Internet users due to shifting behavior to online activities. They merged and cleaned the data by winsorizing at 5 and 95 percentiles to avoid any outlier problems, reaching 74 banks in the sample. They used panel data estimation of quarterly data following Levy-Yeyati et al. (2010) and Trinugroho et al. (2020). Findings: The results show that a higher search volume of a bank's name leads to higher deposits. A higher search volume of depositor fear reduces deposits and credit. The authors also found that banks with high risk and a high search volume of their name have a significantly lower volume of deposits. Originality/value: To the best of the authors' knowledge, not many papers in banking and finance have used Google Trends data to gauge related issues regarding depositors' behavior. The authors have filled a gap in the literature by investigating whether the popularity of Google search and depositors' fear could impact deposits and credit. This study also attempted to establish whether Google Trends data could be a reliable source of information to predict depositors' behavior by using a Zscore to measure bank risk. [ABSTRACT FROM AUTHOR]

This study investigates the influence of economic factors in ensuring access to financial services. Financial service accessibility is assessed using metrics such as the number of bank branches and ATMs per 100,000 people, as well as an index derived from these indicators. Drawing from existing literature, a set of economic variables - namely, employment, inflation, gross domestic savings, remittances, bank credit to deposits, and urbanization - are examined using data from 179 countries over eighteen years spanning from 2004 to 2021, with projections extending to 2023. The findings indicate that employment, remittances, bank credit to deposits, and urbanization exert statistically significant effects on access to financial services. These results are robust across alternative definitions of financial access, subsamples categorized by economic development, and exercises addressing endogeneity concerns. [ABSTRACT FROM AUTHOR]

The paper investigates the effect of a (semi-) deposit run during a debt crisis on crime rates. The study focuses on Greece's protracted debt crisis (2009–2018) and analyzes the response of crime to deposit outflows. It shows that deposit outflows corresponded to a significant increase in property crimes (thefts and burglaries), but not other types of offenses. The study provides useful policy insights for regulatory authorities tasked with monitoring and decreasing the criminogenic effects of financial destabilization [ABSTRACT FROM AUTHOR]