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The idea of 100% reserve requirements against demand deposits received a renewed impetus in recent years. In 1933, a group of University of Chicago economists, led by Frank Knight and Henry Simons, circulated two memoranda that proposed the scheme in what became known as the Chicago Plan of Banking Reform. That same idea had been proposed in 1926 by Frederick Soddy, a Nobel Laureate in chemistry. Soddy claimed precedence, a claim that caught on. I provide evidence showing that Knight, and probably Simons, conceived the idea of 100% reserves prior to the publication of Soddy's 1926 book. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between ownership structures and dividend policies for 46 Islamic and 75 conventional banks from 12 MENA and Asian countries between 2012 and 2020. Logit regression is employed to estimate the regression equation, centering on the moderating impacts of the COVID-19 pandemic and national culture. Our findings remain robust as we tackle the endogeneity issue using probit and logistic regression models. Asset growth and GDP growth serve as proxies for investment opportunities. Additionally, dividend per share acts as a proxy for dividend policy. Our findings emphasize how the ownership structure impacts dividend payouts in both banking systems. We observed positive relationships between dividend payouts and foreign ownership, bank size, age, and performance. Conversely, concentration of ownership and leverage negatively influence dividend payouts. The COVID-19 pandemic directly boosts the dividend policy for conventional banks and alters the relationship between foreign ownership and distribution policy in Islamic banks. Specifically, COVID-19 interacts with foreign and state ownership to reduce dividend payouts, but concentration of ownership does not show this effect. This study furnishes evidence affirming the significance of the ownership structure in shaping the dividend payout policy within Islamic and conventional banking. The results maintain their reliability across various estimation approaches. Moreover, this study accounts for the crisis period as a moderating factor influencing dividend payments. [ABSTRACT FROM AUTHOR]

The aim of this study is to investigate the impact of delegated monitoring by a group leader and peer monitoring by group members on loan defaults in a group-based lending program in Vietnam. The data used in the study were collected from a questionnaire survey of 675 participants involved in a group-based lending program conducted from August to October 2022 in the Mekong River Delta, Vietnam. This group-based lending program employs a unique monitoring system that involves hiring the group leader to supervise the group and encouraging group members to monitor each other. The empirical findings derived from the Probit model indicated that delegated monitoring significantly reduces loan defaults, but there was no evidence supporting the effectiveness of peer monitoring within the group. Additionally, under the delegated monitoring scheme, commissions and group size plays an important role in decreasing loan defaults. The implication of the findings is that the Vietnam Bank for Social Policies (VBSP) could maintain large group sizes to provide incentives for group leaders through commissions to enhance repayment rates. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyse the policy implications of the Insolvency and Bankruptcy Code (IBC) 2016, which was enacted in India as part of banking sector reforms. The study aims to answer the question: Has the policy helped banks enhance their asset quality, stability, and performance?" To determine the effect of IBC on these research variables, we used a difference-in-difference (DID) regression technique. We collected a sample of 924 bank year observations for three categories of banks -- public, private and foreign ownership banks for the period during 2010 to 2021. We first analysed the ownership-wise impact of IBC on asset quality, stability and performance. Then, we further investigated the policy's implications by dividing banks into unhealthy and healthy categories based on their Z scores. In our findings, bank stability and asset quality for three ownership banks (private, public and foreign banks) is significantly different from each other. For overall sample observations, the relationship between asset quality and banks stability is negative and significant. This suggests that a deterioration in asset quality leads to less change in bank stability, i.e. the result confirms banks' loan evergreening problem during the reform period. The results estimating the impact of IBC on stability of public sector banks was insufficient, except for risk capital. Our findings show that public sector banks have tightened their lending standards in anticipation of potential asset quality deterioration. However, our analysis of the IBC's impact on unhealthy banks' asset quality, stability and performance did not align with the policy's objectives. While the IBC policy in itself is passing through several changes in recent, the study's results can aid policymakers in better assessing the impact of banking policies in India and can be used a reference for future policy formulation. A few related areas where the study results will aid to help are insolvency resolution, developing liquidation and cross-board insolvency framework. This paper is the first effort to estimate the impact of IBC separately on asset quality, bank stability, and performance of banks in India. [ABSTRACT FROM AUTHOR]

This study aims to analyze the effect of banking stability, exchange rates, and external debt on economic growth in BRICS countries (Brazil, Russia, India, China, and South Africa) during the period 2011-2020. The data used in this study is panel data from five BRICS countries, obtained from the International Monetary Fund (IMF) and the World Bank. The method used is a panel data regression model using the Fixed Effect method. This model makes it possible to account for the fixed effects of time as well as the fixed effects of individual states in regression analysis. The results of the analysis show that banking stability has a significant negative influence on economic growth in BRICS countries. On the other hand, exchange rates and external debt have a significant positive impact on economic growth. These findings indicate that policies that promote banking stability, prudent exchange rate management, and effective use of external debt can support sustainable economic growth in BRICS countries. The results of the analysis show that banking stability has a significant negative influence on economic growth in BRICS countries. On the other hand, exchange rates and external debt have a significant positive impact on economic growth. These findings indicate that policies that promote banking stability, prudent exchange rate management, and effective use of external debt can support sustainable economic growth in BRICS countries. [ABSTRACT FROM AUTHOR]

The article discusses the Bank of England's (BoE) plan to slow down its quantitative tightening (QT) process, which involves reducing the amount of government bonds (gilts) held in the Bank's asset purchase facility (APF). While there is a consensus that the APF rundown can be achieved through redemptions of these gilt holdings, the author disagrees and expects QT to continue at its current pace. The article explores the arguments for and against slowing down the APF rundown, including concerns about losses from gilt sales, the impact on interest rates, and the government's fiscal rules. The BoE is likely to steadily reduce gilt holdings until they reach zero, using short-term repos as an alternative. However, uncertainties remain regarding the smooth expansion of repos and the impact on short-term interest rates. [Extracted from the article]

The main objective of the present study is to investigate the international spillover effect of US monetary policies on bank lending for 34 upper-middle-income countries during the period of 2000-2021. For this purpose, Panel Smooth Transition Regression model (PSTR) method has been used to estimate the model of this research. Based on the estimation results, the model includes two regimes and its transition variable is the monetary policy rate of the United States, which is not significant in the first regime and is negative and significant in the second regime. So, with the reduction of interest rates and the implementation of expansionary monetary policies in the United States, the lending rate in the studied countries increases; and vice versa. Based on the results obtained and the lack of independence of monetary policies in the studied countries, it is recommended that the countries make their internal economic conditions more stable than the external conditions with targeted policies and somehow secure their economy against external shocks. [ABSTRACT FROM AUTHOR]

Housing industry is one of the major threats to global environment and resource depletion. Particularly in China, it is regarded as a major challenge due to massive population growth. The most common barriers involve; economic barriers and environmental barriers. Therefore, to promote sustainable housing development, the management of these barriers is most crucial. This study is an attempt to overcome these barriers with the help of financial institutions in the context of China. The sample of the study are construction sector employees which are selected through simple random sampling method. Partial Least Square (PLS) is employed as statistical tool to analyze the primary data. Results revealed the positive role of financial institutions to overcome the challenges related to the economic barriers and environmental barriers. Financing from banks for the sustainable housing schemes can reduce the economic barriers and help to fulfil the sustainable housing criteria. Similarly, the environment requirements can also be achieved through environmental policy developed by the banks in China. This study recommended the Chinese government to promote sustainable hosing development through the promotion of bank financing and implementation of banks environmental policies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the determinants of the dividend distribution policy in a banking setting. Design/methodology/approach: Using a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy. Findings: We find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks. Practical implications: Our findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies. Originality/value: Our study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks. [ABSTRACT FROM AUTHOR]

This study draws on the parallelism between digitalization and the complexity of the Islamic banking industry (IBs) in a postpandemic era. It examines the digital Butterfly Effect on the Islamic banking industry to promote tech-driven IBs through an empirical lens. The study constructs a Fintech adoption index (FADi) and uses a Bayesian vector Auto-Regressive model, causality tests and impulse response functions for yearly data from 2008 to 2022 to examine the possible magnified effect of adopting Fintech by the Islamic banking industry in Malaysia. Key findings suggest that embracing Fintech by the IBs enhances the profitability of the banks, which is measured by the return on asset and return on equity. In addition, the study reports a ripple effect of FADi on the broader spectrum of the Malaysian economy. This indicates that Fintech fosters economic growth, household consumption, financial and insurance services, and corporate taxes. On the other hand, Fintech adoption helps reduce the unemployment rate. The findings contribute to the literature by investigating the IB as a system within financial chaos theory and the possible Butterfly Effect triggered by Fintech adoption. [ABSTRACT FROM AUTHOR]

This study examines the impact of CEO characteristics on bank performance within the Tunisian banking sector, focusing on a dataset of 1,340 professionals spanning from 2018 to 2022. Specifically, we compare Islamic and conventional banks, analyzing CEO traits such as educational background and decision-making authority. Our findings reveal higher customer satisfaction levels in Islamic banks (75%) compared to conventional banks (45%). CEO educational background positively influences bank performance in both bank types, with variations in ideal backgrounds. Larger banks tend to perform better, and greater CEO decision-making delegation enhances performance, contradicting the New Institutional Theory. Additionally, the age and frequency of CEO-board meetings significantly affect conventional bank performance. At the same time, these variables are less significant in Islamic banks due to their smaller size and older CEO demographics. Overall, our research highlights the critical role of CEO characteristics in shaping bank performance. This study provides valuable guidance for organizational leadership and regulatory bodies seeking to optimize banking operations. Understanding the impact of a CEO's educational background and decision-making authority on performance underscores the importance of strategic leadership in navigating dynamic market conditions. These insights are crucial for fostering resilience and competitiveness within the Islamic and conventional banking sectors. [ABSTRACT FROM AUTHOR]

This study conducts a comparative analysis of the relationship between Corporate Social Responsibility (CSR) and financial performance in Tunisian banks. The research focuses on an extensive sample of Tunisian banks operating between 2018 and 2022. Two models are employed: one based on Return on Equity (ROE) and the other on Return on Assets (ROA). The findings reveal that Islamic banks benefit from robust CSR practices, leading to enhanced ROA and aligning with ethical principles inherent in Islamic finance. In contrast, conventional banks demonstrate no significant correlation between CSR and ROE and exhibit a negative impact of CSR on ROA. These results underscore the sector-specific nuances of CSR and its influence on financial performance, highlighting the necessity for customized CSR strategies. The study offers valuable insights for banking professionals, policymakers, and stakeholders, aiding their comprehension of the role of CSR in shaping financial outcomes in distinct banking sectors. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between monetary policy and bank risk-taking by introducing a model wherein banks expend a level of costly monitoring effort to select low-risk projects, thereby reducing the risk associated with the loans they grant. The impact of monetary policy on bank risk-taking is examined through both theoretical models and empirical analysis. The paper compares theoretical models with different assumptions, revealing an unambiguous negative effect without the assumption of limited liability for banks, and an ambiguous effect with the assumption of limited liability for banks, influenced by the equity ratio. The empirical model employs unique quarterly data comprising balance sheet information for top-listed banks in the U.S. banking system from 2000 to 2017. The findings indicate that low-interest rates contribute to an increase in bank risk-taking. Moreover, this effect is more pronounced after the financial crisis and weaker before the crisis. Additionally, the impact is evident for undercapitalized banks and more substantial for those financed with a higher proportion of equity. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal 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.)

The predominance of bank credit in financing the economies of less developed countries is prompting policymakers to stimulate this mode of financing. This study tests the ability of conventional monetary policy to stimulate the supply of bank credit to the private sector in Morocco. Based on the lending channel as a theoretical framework, an analytical framework to explore the conduct of monetary policy and the preconditions for the functioning of this channel was developed. In addition, a test of the impact of monetary policy on credit supply was conducted using bank-level data from a representative sample of the Moroccan banking sector. The results show that demand factors and the quality of potential borrowers are the main drivers of bank credit growth. They also show that monetary policy in Morocco directly affects credit growth. However, no evidence that this impact is mediated through credit supply was provided, indicating that the credit channel is not operational in Morocco. The policy implications of these results are discussed. [ABSTRACT FROM AUTHOR]

In this study, we explored the impact of bank leverage and financial frictions on the transmission of real and financial shocks. Two new Keynesian dynamic stochastic general equilibrium (DSGE) models, with and without financial frictions, were employed in the context of the Tunisian economy. In the analysis, we considered three types of shocks—productivity, monetary, and adverse bank capital shocks. The findings reveal that, in the model with financial frictions, the response of macroeconomic and financial variables to demand and supply shocks was more pronounced than in the baseline model, where frictions primarily exist at the borrower level. In this study, we underscored the significance of financial shocks, particularly negative bank capital shocks, in triggering substantial macroeconomic and financial fluctuations, especially when banks operate with higher leverage ratios. Additionally, the inclusion of financial frictions in the DSGE model enhanced its ability to capture the empirical features of real and financial shocks, providing valuable insights for effective monetary policymaking. The results provide foundational insights for Tunisian policymakers to assess the impact of financial frictions in the context of the Tunisian economy. This is significant for the Central Bank of Tunisia, which has not yet adopted a specific DSGE model. Therefore, through our analysis, we determined the amplificatory role of financial frictions in the dynamics of macroeconomic and financial variables in Tunisia and examined the main transmission channels of shock propagation. [ABSTRACT FROM AUTHOR]

The study primarily aims to examine the impact of financial distress on the dividend distribution policy of banks operating in India. Panel data analysis was performed using a static model to investigate the impact of distress on the bank's dividend policy. The Z-score developed by Altman measures a bank's financial distress (a high Z-score indicates the absence of financial distress). Data from 31 out of 34 banks operating in India between 2016 and 2020 has been used. The debt/equity ratio is used as the moderator. The sales log is used as the control variable. A linear connection exists between financial distress and dividends. Furthermore, debt/equity ratio significantly moderates the association of financial distress with dividend policy. The findings contribute to formulating a long-term dividend policy by drawing attention to the distressing situation in the banking sector, focusing on ensuring the banks' financial viability. Thereby, the findings are novel and hold significant worth in improving the current understanding of the subject. [ABSTRACT FROM AUTHOR]

This paper examines the effect of dislocations in foreign currency (FX) swap markets ("CIP deviations") on bank lending. Using data from UK banks we show that when the cost of obtaining swap‐based funds in a particular foreign currency increases, banks reduce the supply of cross‐border credit in that currency. This effect is increasing in the degree of banks' reliance on swap‐based FX funding. Access to foreign relatives matters as banks employ internal capital markets to shield their cross‐border FX lending supply from the described channel. Partial substitution occurs from banks outside the UK not affected by changes in synthetic funding costs. [ABSTRACT FROM AUTHOR]

The study focuses upon the financial distress and dividend policy of selective public banks across the India. The study provides highlights on relationship between previous two along with assessing the moderating effects of debt-equity of banks, the study aims to establish a relationship between the financial distress with dividend policy, many studies have been conducted to verify the robustness of the banking industries across the world, the authors also focused to verify the financial distress using Altman Z-Score model, this study focuses upon the impact of financial distress of selective banks on dividend policy of selective banks. The study found insignificant impact of financial distress on the dividend policy of selective banks, whilst debt-equity negatively moderates the association of previous both at 5% level of significance. The study uses panel data analysis adopting fixed effects and random effects model. The collinearity test is conducted at 5% level of significance; indicate that no variable has any significant impact on the dividend policy of banks. [ABSTRACT FROM AUTHOR]

This study aims to test whether banks can recognize different signals from different types of government grants received by their clients and respond differently. Using a novel panel data set from China, we construct a three-way fixed-effect regression model and empirically explore the effect of government grants received by banks' clients on banks' lending decisions. We find that banks have heterogeneous attitudes towards their clients when the clients receive different types of government grants. In particular, we discover that banks behave positively toward clients who receive "development supportive" grants but negatively toward clients who receive "helping hand" grants. The main results hold after a series of robustness tests. Our study offers fresh perceptions on how banks see government grants of their clients while making lending choices. Our finds will offer certain inspirations for government grant policies and bank lending decisions. [ABSTRACT FROM AUTHOR]

The objective of this research paper is to examine the impact of monetary policy conditions on bank risk-taking in the Western Balkan countries. The paper tries to identify if monetary policy conditions, especially money interest rates, may induce a greater appetite for bank risk-taking in the Western Balkan countries. The impact of macroeconomic and banking indicators on bank risk-taking will be examined, too. For this purpose, we apply pooled OLS techniques, Fixed and Random effects panel, and Hausman-Taylor Instrumental IV model. The econometric results show a negative correlation between the monetary policy rate and bank risk-taking, rejecting the hypothesis that monetary policy rates indicate bank risk increase. However, expansive credit policies or loan portfolio growth have a positive impact on bank risk-taking in the Western Balkans. The study is original, and its findings will be of value to Central Banks and other policymakers in the Western Balkan countries. [ABSTRACT FROM AUTHOR]

As a response to the COVID-19 shock, the Uruguayan government expanded an existing public credit guarantee and introduced deductions in local currency reserve requirements. Policies of the same nature were also implemented by several governments throughout the world. This paper contributes to the financial additionality literature and the literature on the bank lending view of the monetary policy by analyzing the impact of this type of policies on loans' interest rate spread over the interbank rate. Using a very detailed database on loan contracts, we estimate a dynamic panel model to analyze the effects of policy responses to the COVID-19 shock over loan interest rates. We find that the PCG policy had a relatively higher effect on loans' interest rates in comparison to the reserve requirements policy. [ABSTRACT FROM AUTHOR]

Green banking has become dominant in academics' and practitioners' discourse. The purpose of the research is to investigate whether banks' attitudes, in deciding to go green, change under the influence of other banks through their mutual interaction and whether hysteresis plays a part in the process. A mathematical model, described by a differential system with time delay, considering three variables, i.e.: green, outsider and undecided banks, is used as a research method. We investigate the local stability of the two equilibrium points. Moreover, we look for the optimal control strategy targeting the undecided banks so that the outsiders' group diminishes. The main contribution is that the paper sheds more light on the qualitative rather than on the quantitative side of the banking business given that banks' behaviours are examined when it comes to implementing green policies. The research has policy implications since bank managers can decide whether to follow the greening trends of other banks and bank regulators can use the instrument for tracking the overall changes in banks' behaviours in this respect. [ABSTRACT FROM AUTHOR]

We take the mandatory establishment of the Inclusive Finance Division in large state‐owned banks as a quasi‐experiment to explore the impact of inclusive finance policy on operating performance and risk‐taking behaviours of small regional banks. Using financial information for Chinese banks from 2013 to 2019, we find that small regional banks' performance deteriorated, and they engaged in more risk‐taking activities after the policy shock. Moreover, there are even much sharper performance declines in subsets of city commercial banks, and banks face high competition from large state‐owned banks. [ABSTRACT FROM AUTHOR]

This study examines the role of women included in governance system in explaining the impact of dividend policy framework on the risk-taking of banks, using a panel dataset of 52 African countries over the period, 2006–2020. The empirical outcome confirms that independent women on the board has a lower probability of paying dividend, reduce dividend yield and induce less risk-taking of banks while women in country-level governance position seek to protect the interest of shareholders and subsequently increase the likelihood of dividend payments and risk-taking of banks. The study found that banks that pay dividends face stricter market discipline, which in turn reduces banks' risk-taking. The study found that dividend policy framework generally acts as a complement for risk-taking when independent women are included in corporate boards while it acts as a substitute control device for banks' risk-taking when women are included in country-level governance positions. Based on the net effects, the study found robust and strong evidence to support that the dividend policy framework reduces the risk-taking at higher level of women included in governance system. [ABSTRACT FROM AUTHOR]

We use a Bayesian regime switching approach to examine the performance enhancement of adding US international bond funds to a domestic bond universe pre and post the Global Financial Crisis (GFC) during January 1999 and May 2022. We find that the international bond funds provide large significant performance enhancement pre the GFC, with an increase in Certainty Equivalent Return (CER) performance of 0.595% (monthly), but none post the GFC. The performance enhancement pre GFC is driven by Large Emerging Market bond funds, which is likely fueled by a substantial drop in the Emerging Market central bank policy rates pre GFC. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu 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.)

The 3-6 percent inflation target is a policy rule used by the South African Reserve Bank (sarb) to fulfil its statutory obligation of ensuring a low and stable inflation environment and its policy reaction function assesses how the Reserve Bank responds to deviations of inflation fromits target. We rely on nonlinear autoregressive distributive lag (nardl) models to estimate the asymmetric preferences which the Reserve Bank has to inflation deviations during rising and falling episodes of inflation. Using quarterly data spanning from 2002:q1 to 2021:q4, we estimate the policy reaction functions using 7 disaggregated measures of inflation to capture the heterogeneity in the formation of price expectations. We further segregate our data into two sub-periods, corresponding to the pre-crisis and post-crisis era, as a robustness exercise. Overall, our findings indicate that in the postcrisis era the sarb (i) has become more responsive to inflation, output fluctuations and exchange rates and (ii) has responded more aggressively to rising inflation than falling inflation. [ABSTRACT FROM AUTHOR]

With the increasing size of financial assets and the complexity of monetary patterns, countries around the world are gradually becoming more transparent in their monetary policies, using central bank monetary policy communication as a new type of monetary policy instrument. To measure central bank communication more accurately, this paper proposes a dynamic topic model, LDA-BP, based on branching processes, to construct the central bank communication index. At the same time, this paper does four things: it uses the constructed communication index as a proxy variable for the new monetary policy instrument; it builds a TVP-FAVAR model that can extract potential macroeconomic information from many variables, and its time-varying nature can better reflect the dynamic regulatory effect of monetary policy; it constructs a three-dimensional impulse response diagram; and it conducts a systematic analysis of macroeconomic impact. The experimental results of demonstrate its effectiveness on central bank monetary policy communication, as it captures timely information about conventional monetary policy instruments and immediately responds to changes in interest rates and money supply. All three monetary policy instruments are effective in smoothing output volatility, with monetary policy communication having a longer-term impact on the macroeconomy. [ABSTRACT FROM AUTHOR]

The perception, adoption, use and satisfaction regarding Internet banking in Mexico have been scarcely explored. This research contributes to the limited literature on Internet banking in Mexico. Its objective is to analyze the perception that a population of workers has about the online service provided by banks in Mexico. The information was collected from a sample of 197 workers who make use of Internet banking. A very acceptable Cronbach's alpha index was obtained (α = 0.919), which gives evidence of good internal consistency and reliability. The results of an exploratory and confirmatory analysis with a structural equation model (SEM) show that ten out of the eleven attributes explain workers' perception of Internet banking services. From the eleven attributes analyzed, only four of them are significant in the Mexican context. These attributes are: security, monthly account statement, speed in decision-making and accessibility. In terms of implications for banking practice, the results of this research provide deeper insights for bank managers and policy makers to understand Mexicans' motivation and develop appropriate strategies to increase Internet banking use. [ABSTRACT FROM AUTHOR]

Collecting Islamic bank funds with mudharabah contracts, such as mudharabah deposits, will offer depositors a profit-sharing rate. This study aims to obtain empirical evidence regarding the determinants of the profit-sharing rate for mudharabah deposits. The determinants in this study are non-performing financing, operational efficiency, capital adequacy, and third-party funds. The sample used in this study was 11 Islamic commercial banks in Indonesia from 2015-2019. The results show that only capital adequacy affects the profit-sharing rate for mudharabah deposits. The increase in the capital adequacy ratio of Islamic banks in the study period significantly impacted the decrease in the rate of profit-sharing on deposits received by third parties, especially from 2017 to 2018. The results also show that non-performing financing, operational efficiency, and third-party funds do not affect profit-sharing deposits. Problem financing and operational efficiency are still the main problems Islamic banks face in Indonesia, so they do not impact the profit-sharing rate for mudharabah deposits. Third-party funds also tend to decrease during the study period so that it does not impact the profit-sharing rate for mudharabah deposits. The study’s findings are expected to generate theoretical contributions to scientific development in concepts and empirical research in the Islamic banking sector, practical contributions to Islamic banks in their operational activities, and policy contributions to regulators in setting policies in the Islamic banking sector. [ABSTRACT FROM AUTHOR]

Developing countries are noted for higher interest margins, and banking in Africa has recently witnessed the rise of African regional banks with a Pan-African ambition and the quest to modify the banking landscape. So far, the banking literature has received little attention regarding the determinants of net interest margin (NIM) of commercial banks in Africa, and the empirics across domestic, regional African, and non-African banks has not been studied either. Thus, we fill this lacuna by analyzing the intermediation margins of commercial banks across Africa while detailing the determinants for the three banking groups. We employ annual data of 552 commercial banks for eight years (2011 to 2018) across fifty-two African countries. The results of the study indicate that bank intermediation margin in Africa is a function of pure spread variables (bank concentration, credit risk, risk aversion, interest rate volatility), income from non-traditional banking activities, specialization, other bank-specific (transaction size, operating cost) and macro-economic variables (financial innovation and GDP). The results also suggest that there are some similarities and nuances for the determinants of bank intermediation margins across the domestic, regional African, and non-African banks. The results obtained have significant policy implications for bank regulation and financial sector development. [ABSTRACT FROM AUTHOR]

In the past several years, central banks globally have begun to consider whether, and to what extent, questions of climate change and sustainability intersect with their statutory mandates. The issues are not straightforward nor is there a one-size-fits-all approach. A range of important questions thus remain unanswered. To what extent can central banks pursue climate change and sustainability goals within their legislative authorities and thus retain legal legitimacy around these actions? Where legal authority exists, how can central banks operationalize climate or sustainability goals—are existing tools fit for purpose or are new ones required? What is the best distribution of tasks between political authorities and depoliticized agencies with narrower mandates? Inasmuch as public discourse and debate have thrown up these thorny questions, the next several years will require policy and academic conversation to explore them. To that end, this Article develops a set of principles for central banks to consider when addressing these climate policy governance questions, in particular with regard to the limits and legitimacy of sustainable central banking. It does so by examining the legal frameworks governing, and unfolding climate initiatives in, the U.S. Federal Reserve, the U.K. Bank of England, and the European Central Bank. * [ABSTRACT FROM AUTHOR]

The transmission of financial shocks and the gains from international macroprudential policy coordination are studied in a two‐region, core–periphery model with a global bank, a two‐level financial structure and imperfect financial integration. The model replicates the stylized facts associated with global banking shocks, with respect to output, credit, house prices and real exchange rate fluctuations in recipient countries, as documented empirically. Numerical experiments, based on a parametrized version of the model, show that the gains from coordination increase with the degree of financial integration, which raises the scope for spillback effects from the periphery to the core, through trade and private capital flows. However, even when coordination is Pareto‐improving, the resulting gains may be highly asymmetric across regions. [ABSTRACT FROM AUTHOR]

This study aims to evaluate the effect of bank profitability on the monetary policy transmission of the Bank of Central African States (BEAC). In order to accomplish this, we conducted a panel data analysis using a sample of 12 commercial banks that were active in Cameroon over the period 2010-2021. The Credit National Council of Cameroon provided the data used in this study. The Fully Modify Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methods are used to estimate our model. We find that the most profitable banks are less sensitive to the restrictive monetary policy shocks than those with low profitability. This result shows that bank's profitability negatively affect the effectiveness of monetary policy. Consequently, we advise BEAC to promote the entry of new commercial banks into the Cameroon financial sector. This will lead to a decline in bank profitability while also raising bank sensitivity to change in monetary policy. [ABSTRACT FROM AUTHOR]

We investigate the impact of stakeholder orientation on bank payout policy. As a quasi‐experimental setting, we exploit the staggered enactment of constituency statutes across US states, which broaden the scope of managerial duties to an extended group of stakeholders. The results of a difference‐in‐differences analysis suggest that bank holding companies (BHCs) incorporated in states enacting constituency statutes experience significant declines in total payouts, which is driven by a decline in share repurchases. This observed decline in share repurchases is stronger for banks with sizeable implicit claims, lower transparency and substantial agency conflicts. These findings remain intact following a myriad of robustness checks and alternative estimation techniques. [ABSTRACT FROM AUTHOR]

This article problematizes the political economic drivers of policy (non-)design, instrument choice, and how prolonged non-design could trigger policy accumulation with serious implications for policy capacity. Focusing on the currency crisis-induced economic crisis in Turkey and relying on elite interviews and secondary resources, it argues that the design space, which is defined by the interactions between the credit-led growth model and the growth regime that prioritizes loose monetary and bank regulatory policies for higher economic growth rates, led to haphazard crisis response. Prolonged non-design in response to the crisis triggered policy accumulation and decay in systemic and organizational policy capacity. [ABSTRACT FROM AUTHOR]

Copyright of Ekonomika is the property of Society of Economists 'Ekonomika' 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.)

For a quarter of a century, the western world has enjoyed a macroeconomic environment characterized by low and stable inflation. Over the last two years, this benign state has dramatically changed. In America and Europe, inflation has resurged with unexpected vigor. Treated at first by central banks and most of their observers as a mere temporary aberration, which would soon fade again without much need for action, it has since assumed a virulence which has forced central banks to tighten their policies much more forcefully than was initially expected. How did all this come about? How are central banks and their monetary policies to be judged? [ABSTRACT FROM AUTHOR]

We document that banks reduce the supply of mortgage loans when policy uncertainty increases in their headquarter states as measured by the timing of U.S. gubernatorial elections. The reduction is larger for term‐limited elections and close elections. We utilize high‐frequency, geographically granular loan‐level data to address an identification problem arising from changing local loan demand: (i) we estimate a difference‐in‐difference specification with state/time or county/time fixed effects; (ii) banks reduce lending outside their home states as well when their home states hold elections; and (iii) we observe important cross‐sectional differences in the way banks with different characteristics respond to policy uncertainty. [ABSTRACT FROM AUTHOR]

On average, each person in Indonesia generates 0.45 kg of waste a day. The country is home to 231.8 million people, so the average daily waste generated is approximately 104.31 million kg. Malang, one of the biggest cities in East Java Province, generated 1,790.5 m3 of waste in 2001. Bank Sampah Malang (BSM), a waste bank program, has been established as a social engineering project to socialize and educate waste management in the community. The Malang Waste Bank (BSM) management policy was made as social engineering, providing socialization and education to the community to manage waste. This study aims to analyze the BSM policy by using the Analytic Hierarchy Process (AHP). Information from informants about policy evaluation shows that AHP consists of criteria, sub-criteria, and policy determination based on a green economy concept. The green economy includes economic, social, and environmental/ecological aspects. To sum up, BSM policy as the priority of social engineering requires institutional and environmental support as well as information availability. [ABSTRACT FROM AUTHOR]

As one of the specific practices of natural resource index trading, the forest ecological bank policy (FEB) is essentially a market-based tool. With the deepening of ecological governance, the FEB policy has also become the main method chosen to solve the economic development problems in ecologically rich "low-lying" areas. However, in the process of implementing the FEB policy, the differences in the demands of various stakeholders were found to have led to a complex game phenomenon, resulting in deviations in policy implementation. This study constructs a multiplayer evolutionary game model between local governments and enterprises of different scales and analyzes the evolutionary stabilization strategy (ESS) in the implementation of the FEB policy. The results show that, under different conditions, there are three stabilization strategies in the evolutionary game system, these correspond to F1 (0, 0, 0), F4 (0, 1, 1), and F5 (1, 0, 0), respectively, the implications are that the strict government role with an active regulatory strategy leads to companies of different sizes refusing to participate (i.e., F5) and the lax government role with a negative regulatory strategy leads to companies of different sizes refusing to participate (i.e., F1) or choosing to participate (i.e., F4). Among them, the strict government role stimulates the companies to participate in the FEB policy through the high intensity of government regulation. In addition, as the policy continues to be implemented, the influence of the strict regulation on the "participation" behavior of the companies decreases. Conversely, the lax government role allows the companies to give full play to their autonomy and obtain higher ecological and environmental benefits. [ABSTRACT FROM AUTHOR]

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This paper attempts to employ a microeconomic model (industrial‐organization approach to banking) to formalize the concept that banks in an economy may also unilaterally create money, at least initially, rather than passively multiplying the base money exogenously issued by the Central Bank in the money creation process. It shows that in equilibrium, banks may indeed create money (bank deposits) when making loans without relying on the newly issued base money from the Central Bank. Instead, the endogenously created money by banks would cause the Central Bank to endogenously adjust base money to hit the target policy interest rate. [ABSTRACT FROM AUTHOR]

The present study primarily examines the impact of financial distress (FD) on the dividend policy of 33 banks working in the Indian economy from 2010 to 2019. In addition, we further explore the association between financial distress and dividend policy under the influence of shareholder activism (SHA). Using the static panel data regression technique, it is revealed that financial distress is non-linearly associated with the dividend policy of banks in an inverted U-shape. In the initial phase of a distressing situation, banks tend to have a liberal dividend policy. However, after reaching the pressure point, the banks start to squeeze dividend distribution to the stakeholders. Furthermore, the significant impact of shareholder activism has been found in the association between financial distress and the dividend payout policy of banks. From the policy perspective, the study will provide the policymakers with a clear all-round perspective of distressing situations, as the current research involves exploring the impact of distress on the dividend policy that will help the experts in basically understanding the adverse effect of financial distress and the repercussions, respectively, on the earning of the shareholders. [ABSTRACT FROM AUTHOR]

This paper examines how ownership structure interacts with monetary policy in shaping financial intermediaries' appetite for risk. By constructing a large panel of banks across Western Europe, we provide evidence that differences in bank ownership influence the transmission of monetary policy via the risk‐taking channel. While shareholder banks actively adjust the riskiness of their portfolios to changes in interest rates, stakeholder banks appear to be less responsive to such changes. These findings call for greater attention to the nature of bank ownership when setting monetary policy. [ABSTRACT FROM AUTHOR]

This paper analyzes the main features of the restructuring of the Spanish banking system after the 2008 crisis. The Bank of Spain -the enforcement arm of the European Central Bank's policy- and successive governments accentuated the oligopolistic nature of Spanish banking, as their measures contributed to limit internal competition (eliminating savings banks) and to socialize the costs of the bank bailout. [ABSTRACT FROM AUTHOR]

New forms of money invite informed speculation regarding future possibilities. In this extended commentary, we explore five issue-areas that the growth of cryptocurrency and, more particularly, stablecoin have evoked. This new form of digital money has the potential to change the form and functioning of payments technologies and thus alter not just how something is paid for but what can be paid for. Moreover, as the now shelved plans for Facebook/Meta's Libra/Diem indicate, there is scope for a major corporation or coalition of corporations to issue their own stablecoin and this greatly increases the likelihood of a 'systemic' stablecoin. This, in turn, could change where power resides and who exercises it in banking, finance and society. Concern with power leads to issues regarding the nature of change and thus to concern with possible financial, economic and social disruptions ranging across the nature of trust, bank business models, the effectiveness of central bank policy and security of payments systems. Given these issues, cryptocurrency and stablecoin have become a growing concern for regulators and this concern extends to the case for a retail central bank digital currency (CBDC). Finally, a new form of money invites discussion of its implications for the nature of money and this leads to matters of philosophical or social theory interest. [ABSTRACT FROM AUTHOR]

The emergence of financial technology companies (fintechs) has spurred expectations that they will lead to large-scale disintermediation in finance and significantly disrupt the banking industry. Regulators in several jurisdictions have supported their market entry through the adoption of open banking policies, whose purpose is to facilitate third-party access to banking data, subject to customer consent. Data access has been seen as a competitive bottleneck in the banking industry, while customers hold the ultimate ownership over their data. This paper aims to critically assess proclaimed promises of open banking by analysing existing barriers to entry and market-based collaborations between banks and fintechs as identified in the literature. Since the expected effects can vary depending on the regulatory model embraced, the paper also outlines the economic trade-offs of different regulatory solutions. Consequently, the paper may help regulators who are considering introducing or designing open banking policies. [ABSTRACT FROM AUTHOR]

In this paper, the impact of monetary policy on industrial production is investigated for Malawi. Using the ARDL bounds testing approach, and VAR models, it is shown that tight monetary conditions negatively affect industrial production both in the short run and in the long run. This is the case whether the central bank's policy rate or reserve money is used as the policy tool. The study further establishes the interest rate channel, and money supply channel as the main mechanisms through which this effect of monetary policy is transmitted to industrial production. Given these results, a recommendation is made that the Reserve Bank of Malawi should refrain from prolonged use of tight monetary policy in their quest to achieve stability of prices as this stifles growth of the industrial sector. Rather monetary policy should be used as a temporary stabilization tool when faced with temporary shocks to the bank's policy objectives. [ABSTRACT FROM AUTHOR]