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The purpose of this research is to explore and summarize aspects of the current state and development trends in Albania's banking sector. The analysis shows that the banking system dominates the country's financial landscape, while the securities market remains nascent. Adverse inflationary dynamics are also observed. The research demonstrates dependencies between key banking indicators like non-performing loans, capital adequacy ratio and money supply on economic factors. The prospects for Albania's banking sector are challenged by the volatile global economy, however promoting lending, improving asset quality and supporting businesses can help establish stability. Expanding the securities market can also assist banking sector growth. The practical significance is that the identified trends and relationships can inform policy decisions to facilitate robust banking sector performance. [ABSTRACT FROM AUTHOR]

Several policymakers and academic works have been discussing the nature of Central Bank Digital Currency (CBDC) as well as its debated relationship with crypto-assets. CBDC would allow the private (non-financial) sector to access the central bank’s reserves. Given its superior hierarchy in the money spectrum, CBDC adoption could trigger a strong or mild conversion from deposits, depending on its design, with strong impacts on the assets and liabilities composition and magnitude of different actors. The aim of this paper is to study the dynamics related to the transmigration process from deposits to CBDC as well as the process of money creation through a detailed step-by-step analysis, tracking the transactions between the institutions involved in its adoption. It underlines the validity of the endogenous money theory (EMT) in describing those transactions while clarifying the maintenance of the commercial banks’ vital role in the process of money creation, in a world with the emergence of CBDC. [ABSTRACT FROM AUTHOR]

The object of the study is monetary processes and the real sector of the economy. The purpose of the study is to analyze the impact of monetary processes in the economy on GDP based on a systematic approach. The task of analyzing the relationship between the main indicators of monetary processes and GDP on the basis of a wide sample of countries was solved. The results are obtained: – for the variables included in the cluster analysis, the money supply analyzed: (1st cluster “stable financial environment” – 0, 2nd cluster “high access to credit” – 147.7, 3rd cluster “limited access to credit” – 72.2, 4th cluster “high interest rates” – 30.4 % of GDP); – 72 countries are divided into 4 clusters, with 13 countries in the first cluster, 15 in the second, 21 in the third, and 23 in the fourth. This allows to determine the nature and place of the economy in the world and to make monetary policy decisions; – there is a positive correlation between GDP and money supply (r=0.317); there is a weak positive relationship between GDP and the credit information depth index (r=0.203); there is a moderate positive relationship between GDP and domestic lending (r=0.39). Money supply management and domestic credit should be prioritized in monetary management of the economy. The obtained results are explained by the assumption of linear dependence between the indicators of monetary processes and the real sector of the economy. This assumption was confirmed on the example of different countries, which indicates its universality. The peculiarities of the results obtained are the application of a combination of cluster and correlation and regression methods of analysis using actual World Bank data [ABSTRACT FROM AUTHOR]

Domestic and international risk shocks have greatly increased the demand for systemic risk management in China. This paper estimates China's multi-layer financial network based on multiple financial relationships among banks, assets, and firms, using China's banking system data in 2021. An improved PageRank algorithm is proposed to identify systemically important banks and other economic sectors, and a stress test is conducted. This study finds that China's multi-layer financial network is sparse, and the distribution of transactions across financial markets is uneven. Regulatory authorities should support economic recovery and adjust the money supply, while banks should differentiate competition and manage risks better. Based on the PageRank index, this paper assesses the systemic importance of large commercial banks from the perspective of network structure, emphasizing the role of banks' transaction behavior and market participation. Different industries and asset classes are also assessed, suggesting that increased attention should be paid to industry risks and regulatory oversight of bank investments. Finally, stress tests confirm that the improved PageRank algorithm is applicable within the multi-layer financial network, reinforcing the need for prudential supervision of the banking system and revealing that the degree of transaction concentration will affect the systemic importance of financial institutions. [ABSTRACT FROM AUTHOR]

This paper explores the origins of German banks' risk‐taking in the years preceding the 1931 crisis. The 1920s were marked by a large and prolonged increase in capital flows into Germany, chiefly from the United States and the United Kingdom. This coincided, at the individual bank level, with a rise in leverage and a fall in liquidity. We examine possible connections between the two phenomena. Our analysis is based on a combination of historiographical work and statistical modelling based on a newly hand‐collected bimonthly dataset on German reporting banks from 1925 to 1935. Bank by bank we examine the effects of foreign inflows on decisions related to leverage, lending, and liquidity. The Dawes Plan of 1924 and the relative absence of a too‐big‐to‐fail (TBTF) environment allow us to mitigate endogeneity concerns. We suggest that while capital inflows did not seem to impact banks' liquidity decisions, their impact on leverage was non‐negligeable. [ABSTRACT FROM AUTHOR]

The '100% money' proposal aims at divorcing the creation of money from banking, by requiring 100% reserves on transaction accounts. The public monetary authority would then be the sole issuer of means of payment, while the banks would function as true intermediaries, financing loans with pre‐existing money. This article, building on the works of 1930s economists such as Irving Fisher, presents ten arguments in favour of this reform proposal — arguing that it would, in particular, prevent cumulative variations in the money stock, facilitate monetary control, reduce government intervention in banking, improve public finances, and make money creation more neutral. [ABSTRACT FROM AUTHOR]

Banking sector credits have an important role in the functioning of the monetary transmission mechanism. Policies implemented to determine the money supply affect the credit channel and the real economy through monetary transmission. The sound functioning of the credit channel is closely related to the stable management and the level of development of the financial system. In this study, the relationship between commercial loans provided by the Turkish banking sector and employment is analyzed. The study utilizes monthly unemployment rates and commercial loans provided by the Turkish banking sector for the period 2015:M01-2023:M3. The stationarity levels of the variables are investigated with Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. Granger Causality test and Toda Yamamoto method are used to determine whether there is causality between the variables and if there is a causality relationship, its direction. According to the results of causality analysis, it is concluded that there is no causality relationship between employment data and Turkish banking sector commercial loans. [ABSTRACT FROM AUTHOR]

We estimate elasticities of substitution between components of the Bank of England's household-sector UK Divisia monetary aggregate using quarterly data from 1999 to 2019, encompassing the period surrounding the global financial crisis. The demand system includes interest-bearing sight and time deposits at monetary financial institutions as components, since deposit data for banks (excluding mutuals) and for mutuals are no longer published separately. We find that the elasticities of substitution that relate to changes in the user cost of noninterest-bearing monetary assets imply inelastic substitution over all or almost all of the sample and, consequently, a conventional monetary aggregate would be a highly misleading economic indicator relative to a Divisia monetary aggregate. [ABSTRACT FROM AUTHOR]

Copyright of International Economics / Economia Internazionale is the property of Camera di Commercio di Genova 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.)

This work investigates the relationships between the retail payment system, monetary aggregates and economic activity in Spain from a long-run perspective. This approach is considered from the perspective of the transformations favored by ICT in the payment system, which incorporates increasingly more and more cashless instruments. The methodology used is based on cointegration analysis and error correction models. Likewise, a new indicator of some trends in the implementation of cashless transactions in payment systems is proposed; this measure has been applied to Spain and other European countries. With respect to long-run relationships, we demonstrate the relevant (and direct) impact of changes in the monetary system and national income on the value of cashless transactions. Regarding the short-run, the most important relationships in terms of the value of cashless transactions are those related to the real estate sector. The empirical results evidence the intensive progress of the cashless society in Spain, where the banking sector, regulatory changes and ICT development have played a key role. [ABSTRACT FROM AUTHOR]

The article focuses on the significance of preserving traditional languages in indigenous communities to maintain their cultural heritage, improve education, and foster a sense of identity and belonging. It mentions the importance of language documentation, language revitalization programs, and collaborations between linguists and community members to achieve effective language preservation.

The estimation of the impact of financial liberalization on economic growth in Algeria during the period 1990 – 2022 by an autoregressive VAR regression model shows that the financial development indicators, which are the credits granted to the private sector and the money supply, do not influence positively on the gross domestic product while the inflation rate negatively affects the GDP. The success of financial liberalization for the benefit of economic growth is conditioned by the respect of certain preconditions such as macroeconomic stability and financial development allowing the creation of a sphere encouraging savings and local and foreign investment favoring production to get rid of the rentier nature of financing the economy which puts the banking and financial sector outside its role of financial intermediation. [ABSTRACT FROM AUTHOR]

Copyright of Global Journal of Economics & Business is the property of Refaad for Studies, Research & Development 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 current study aims to examine the determinants of the capital adequacy ratio (CAR) in the context of Jordanian banks through a literature review and analysis of empirical evidence. The aggregate data were obtained from Globaleconomy.com, the Financial Soundness Indicators, the Central Bank of Jordan, and World Bank Data covering the period from 2003 to 2021. The aggregate data were analyzed using autoregressive distributed lag (ARDL), utilizing Econometric Views (EViews) software. The empirical results suggest a short-run causality relationship running from banks' credit-to-deposits ratio, banks' leverage ratio, banks' liquidity ratio, and one-year-lagged ROE to the CAR. The results also suggest the existence of short-run causality running from the capital-to-assets ratio, one-year-lagged capital-to-asset ratio, liquid-assets-to-deposits ratio, and coverage ratio to CAR. In addition, the results show the leverage ratio and liquidity ratio as having positive long-run associations with CAR. A positive and significant long-run association was also found between CAR, on the one hand, and the capital-to-assets ratio and the liquid assets to deposits ratio; the coverage ratio, on the other hand, showed a negative and statistically significant long-run association with CAR. The pairwise Granger causality test results reveal that liquid asset to deposits, money supply, profitability, and the capital-to-assets ratio Granger cause CAR. The study findings emphasize the importance of understanding the factors impacting CAR, the direction of the influence, the magnitude of the influence of the determinants of CAR in emerging economies such as Jordan and taking appropriate measures to safeguard the stability and resilience of the banking industry. [ABSTRACT FROM AUTHOR]

To efficiently assess the performance of investing in stocks rather than in a bank account for the long run, stochastic interest rate modelling is advocated. We introduce a correlated stochastic interest rate model that addresses this problem. We derive analytic formulas for general spectral risk measures in our setting, and apply our results to Value at Risk, Expected Shortfall and GlueVaR. We characterize the short- and long-term behaviour of these risk measures. We fit our model to financial markets, perform an empirical study and evaluate risk numbers for realistic scenarios in the future. Our results reveal sizeable sensitivities on parameter estimation, but we may conclude that holding stocks for less than a few decades bears significant risk. [ABSTRACT FROM AUTHOR]

The CMA (Common Monetary Area) is a quadrilateral monetary arrangement encompassing South Africa, Namibia, Lesotho, and Eswatini. The four countries have undergone a gradual improvement in regional economic integration for the effective economic coordination of their policymaking. Despite the monetary coordination, the countries are still experiencing poor economic performance. This study traces how a shock or an unanticipated change in the anchor country's central bank's policy instrument, in this case, South Africa, affects the macroeconomic performance in the entire CMA region. Employing a Panel Structural Vector Autoregressive model (Panel-SVAR) and annual data from 1980–2021, the findings show that a positive shock in the repo rate from South Africa significantly affected important macroeconomic performance indicators. The results indicate that a shock in the anchor country's repo rate is followed by a significant decline in RGDP_G, a decrease in inflation, a decrease in money supply, and an increase in lending rate in the entire CMA region. The study recommends that CMA monetary authorities and policymakers need to formulate policies toward cushioning the effects of unanticipated monetary policy shock from the anchor country as well as global shocks. [ABSTRACT FROM AUTHOR]

As the competitiveness of the banking sector has a direct effect on the steady state growth rate, through a process of well-functioning educational system, it is expected that capital market sector responds positively to steady economic growth. This is a puzzle that this study identified and put into empirical test. Data on financial market intermediation (as measured by market capitalization, money supply, credit to the private sector, and total reserve) and economic growth (as measured by Real GDP) were obtained from a secondary sources, namely the Central Bank of Nigeria Statistical Bulletin (2017), National Bureau of Statistics (2017) and World Bank Development Index. The study therefore applied stationarity tests (Augmented Dickey Fuller and Phillip Perron) and structural vector autoregressive (SVAR) as analytical techniques in a bid to examine the effects of financial market intermediation on economic growth in Nigeria over a thirty-seven (37)-year period, from 1981 to 2017. Based on the evidence of statistical result, it was established that the estimated parameters attained stationarity at first difference, that is, I(1), the result further expressed that market capitalization has a positive and significant effect on economic growth (z=26.62778; p0.05); money supply has a positive and significant effect on economic growth (z=4.914683; p0.05); credit to the private sector has an inverse and significant effect on economic growth (z=2.707756; p0.05); and lastly, the result disclosed that total reserve has a negative and significant effect on economic growth in Nigeria (z=12.63565; p0.05). According to the study, financial market intermediation has a significant impact on economic growth in Nigeria and can be used to predict economic growth in the Nigerian economy as in other developing economies of the world. The policy implication in the study is that governments need to intensify effort to ensure appropriate policy mix for harmony and proper coordination of economic policies and greater attention directed to money supply that is, greater emphasis should be on the improvement of monetary policies, instruments and institutions in Nigeria to ensure effective and efficient monetary system. The study also implies that government need to strengthen capital market the more in order to remain competitive. [ABSTRACT FROM AUTHOR]

This paper set out to empirically evaluate the impact of deposit money banks' credit on the performance of Nigerian economic growth. Data covering 1986 to 2020 were collected from secondary sources and unit root test, cointegration test and the ECM method used in analyzing the data. Findings from the study revealed that total bank credit and money supply both had a positive significant relationship with economic growth. Private sector credit had a positive but not significant relationship with economic growth while lending rate had a negative and significant relationship with economic growth. The study thus recommends that the monetary authorities should implement policies favourable to deposit money banks' credit creation and intensify efforts to attract credit to the private sector in order to stimulate economic growth while policies to support the growth of the financial market and banking industry should be enacted and implemented. [ABSTRACT FROM AUTHOR]

Some trading platforms also conduct proprietary trading or allow proprietary trading on the platform by affiliated entities. Applying our characterization, FTX is the exchange arm, FTT is the cryptocurrency of the issuance arm, and Alameda is the trading arm. A compelling reason is that the trading arm would bring a lot of trading activities (and thus the associated fee revenue) to the exchange. [Extracted from the article]

Using a dynamic stochastic general equilibrium (DSGE) model, we analyzed the impact of the Basel II and III capital requirements regulations on the effects of monetary policy shocks on the behavior of the macroeconomy and the Iranian banking system. According to the structural shocks, four observable variables including output gap, bank capital adequacy, inflation and money base growth rate during the period from 2004Q1 to 2020Q4 were included in the Bayesian estimation process along with some other predetermined parameters. Finally, the impulse-response functions of the model were interpreted in two scenarios Basel II or III to the capital adequacy ratio. The results suggest that if banks operate under the Basel II capital regulations, the central bank's use of money supply may lead to low growth in the economy in the short-run, but in the medium- and long-run, the negative effects will be much larger. However, with the introduction of Basel III regulations for banking business, the output fluctuations will be reduced by the expansion of money supply. The results also show that a shock to the money supply leads to a sharp increase in inflation, and it is noteworthy that the introduction of Basel II or III does not affect the nature of the inflation response to monetary policy. Finally, we found that in both scenarios of the introduction of Basel II and III due to a monetary policy shock, bank profitability falls sharply in the short-run. However, with the adjustments that the bank makes to interest rates, it quickly returns to profitability. [ABSTRACT FROM AUTHOR]

Banks, which are important actors of the overall economy and the financial system, are directly and indirectly affected by the developments in the global and national economy and continue their activities by being exposed to various risks. Therefore, the risks that banks are exposed to and the management of these risks are important. Liquidity risk, which is among the risks mentioned above, is of vital importance for banks and requires proactive management. In this context, this study aims to reveal the internal and external determinants of the Liquidity Coverage Ratio, which is an indicator of the liquidity level of banks in the Turkish banking sector, covering the Covid-19 period. The quarterly data of 19 commercial and 4 participation banks operating in Turkey between 2015/12 and 2021/9 were analysed by panel data analysis method within the scope of the established models. As a result of the analysis, it was concluded that there are statistically significant relationships between the liquidity level of the Turkish banking sector, which consists of deposit and participation banks within the scope of the sample, and bank-specific deposits, loan deposit ratio, return on equity, capital adequacy ratio, equity and asset size and macroeconomic factors money supply, credit default swap, control variable Covid period. [ABSTRACT FROM AUTHOR]

The current article investigates the impact of bank-specific and macroeconomic factors on the net interest margin (NIM) of commercial banks in Vietnam. In order to explore the association, we performed Bayesian linear regression on a dataset of 24 banks from 2008 to 2020. Our research result reveals that bank size (LNSIZE), profitability (ROA), operational cost to operating income ratio (BOPO), loan-to-deposit ratio (LDR), and non-performing loan ratio (NPL) of a bank positively affect the NIM of banks. On the contrary, bank liquidity (GWM) and loan market power (MPR) negatively affect the NIM of banks. Moreover, we suggest that macroeconomic factors, including GDP growth (GDP) and M2 money supply growth (M2), have a negative impact on NIM. Furthermore, the impact of the inflation rate (INFL) on NIM is relatively low. Our article highlights new information that improves the understanding of the NIM of banks in emerging economies like Vietnam. [ABSTRACT FROM AUTHOR]

The influence of the interest policy of the National Bank of Ukraine on the dynamics of lending to non-financial corporations during the period of using the monetary regime of fixed exchange rate and inflation targeting is considered. It has been proven, that the use of the symmetric corridor of the interest policy of the National Bank of Ukraine has a negative effect on the volume of lending to non-financial corporations, since high rates on deposit certificates of the National Bank of Ukraine create a risk-free and highly profitable instrument for the placement of bank assets, which discourages lending to the real sector of the economy. The absence of a connection between the interest rate policy and the dynamics of the consumer price index and the money supply during the period of inflation targeting is substantiated, which made it possible to prove the low level of effectiveness of the chosen monetary regime. The aim of the article is to study the problems of bank lending to non-financial corporations of Ukraine in the conditions of inflation targeting and to develop proposals for its stimulation, taking into account foreign experience. Methods. The methodological basis of the work is the dialectical method of cognition, the policy and credit. The work uses methods of economic and mathematical statistics and methods of correlation analysis to analyze the features of lending to non-financial corporations and the impact of inflation targeting on the dynamics of bank lending; generalization methods for formulating research conclusions. Results. The monetary regime of inflation targeting is quite often recommended by the International Monetary Fund for implementation in countries with emerging markets as a basic set of central bank tools for regulating inflation and ensuring price stability. However, in conditions of import dependence of the national economies of countries with emerging markets, in addition to changes in the money supply and credit activity of banks, the dynamics of export-import operations and the volume of official reserve assets, which determine the level of the exchange rate, have a decisive influence on the dynamics of the consumer price index, and it, in turn, determines the level of prices for imported goods and services. Neglecting the non-monetary factors of supply inflation during the implementation of the interest policy leads to the limitation of bank lending to non-financial corporations, which in turn reduces the ability of enterprises to increase capital investments at the expense of bank loans, as well as to develop domestic production with high added value and to implement the policy of import substitution. Therefore, for this purpose, it is necessary to use the asymmetric corridor of the central bank's interest policy and stimulate targeted bank lending to non-financial corporations. [ABSTRACT FROM AUTHOR]

All governments face increasingly frequent issues arising from aggregate supply and demand against currency circulation and financial stability, and public finance and banking authorities employ a variety of policy instruments to keep the economy stable and coordinated. How to avoid policy conflicts and maximize effectiveness in policy portfolio of local government borrowing, which is taken as a major macrocontrol instrument, is a subject that needs in-depth study. This paper probes into local government borrowing's monetary effect and transmission mechanism and its best synergistic model with monetary policy by the construction of a NK-DSGE model covering financial frictions, multi-period bonds and borrowing rules. The findings are as follows. (1) The shocks of one-percent local government borrowing (bond duration=5 years) push up the money multiplier by 0.39% to produce expansionary monetary effect, and the longer the bond duration, the greater the effect. (2) In the context of physical and financial shocks, monetary policy adopts a moderately tight reverse synergy with local government borrowing, effectively restraining its expansionary monetary effect for better economic stability and recovery. (3) For bonds with longer maturities, raising the risk sensitivity of local government borrowing rules benefits the improvement of welfare. [ABSTRACT FROM AUTHOR]

We analyze the heterogeneous employment effects of financial shocks using a rich data set of job contracts, matched with the universe of firms and their lending banks in one Italian region. To isolate the effect of the financial shock, we construct a firm-specific time-varying measure of credit supply. The preferred estimate indicates that the average elasticity of employment to a credit supply shock is 0.36. Adjustment affects both the extensive and the intensive margins and is concentrated among workers with temporary contracts. We also examine the heterogeneous effects of the credit crunch by education, age, gender and nationality. [ABSTRACT FROM AUTHOR]

This study seeks to examine the pass‐through effect of monetary policy tools on economic growth in Nigeria using quarterly time series data from Q12008 to Q42018. The study employed Augmented Dickey Fuller's unit root test, lag selection criteria, and impulse response function under Toda‐Yamamoto approach to examine the pass‐through effect of monetary policy tools on economic growth. The summary of the results is that, the dynamism in monetary policy tools through money supply remains inconsistent and the changes (either increase/decrease) in these elements could dampen down availability of credit to core private sectors thus hampering growth and development. This study therefore recommends; that monetary authority takes proactive measures to ensure sound and robust commercial banks that can facilitates substantial funds to core private sector to boost productivity of the economy. This can be achieve through close monitoring of banks and ensuring full implementations of indirect monetary policy tools. [ABSTRACT FROM AUTHOR]

Purpose: Since 2004, Pakistan carried the banking sector under the umbrella of the Islamic financial paradigm, consequently the Islamic Banking Industry (IBI) placed an upright position in the banking and financial market of Pakistan. In this context, this study aims to analyze the effect of Shariah-compliant products of the IBI on the pace of economic growth in Pakistan. Design/methodology/approach: The data set covered 13 Pakistani Islamic banks comprising four full-fledged Islamic banks and 9 conventional banks holdings standalone Islamic Branches, for the period 2004–2019. Considering nature of the empirical model and data set, the estimation was carried out with the Pooled Ordinary least squares estimation technique. Findings: The findings of the study reveal that Shariah-compliant products have a positive effect on the pace of economic growth. This indication is based on the fact that five out of six Shariah-compliant products hold positive signs and are statistically significant. In addition, the empirical evidence shows that at large conventional financial sector signifies its role in the Shariah-compliant products and pace of economic growth nexus. Among the control variables, foreign direct investment, human capital, trade openness, inflation and private credit pose negative, whereas money supply and stock market capitalization have a positive effect on the pace of economic growth in Pakistan. Findings of the study points towards the fact that Shariah-compliant financing has great potential to enhance the economic growth of Pakistan therefore to touch the sustainable development goals (SDGs). Practical implications: Having played a significant role in the growth process, Islamic bankers should portray a positive image of their industry to the government authorities. The government should design a public policy to encourage Islamic modes of finance at a macro level to increase the pace of economic growth and therefore SDGs realization. Originality/value: Findings of the study present new insight into the application of Shariah-compliant products of IBI toward the realization of SDGs in case of Pakistan. [ABSTRACT FROM AUTHOR]

Copyright of Acta Economica is the property of University of Banja Luka, Faculty of Economics 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.)

Despite recent clarifications by central banks that it is indeed commercial banks that are the main creators of the money supply, money creation processes remain as confusing and opaque as ever to many. This article develops a simplified macro-visual diagram of today's money system based on the increasingly accepted "credit theory" of money creation. It aims to explain not only how money is created and which institutions have the authority to create it; it also aims to discuss the implications of this understanding of money creation for wider issues, such as political sovereignty, inequality, and socio-economic development. Ultimately, it aims to provide a pedagogical resource upon which both technical and normative discussions about our current money system among academics, activists, and students can be based. [ABSTRACT FROM AUTHOR]

In this study, we have explored the dynamic causal relationship between financial development and economic growth in Uganda during the period from 1980 to 2015. Although the finance-growth nexus debate has been raging for decades, Uganda, similar to many other low-income sub-Saharan African countries, has not yet received adequate coverage on the subject. To eliminate the variable omission bias associated with some previous studies, two intermittent variables, namely savings and inflation, have been included alongside financial development and economic growth in a multivariate Granger-causality setting. In addition, five proxies of financial sector development have been used in the current study, namely money supply to GDP, deposit money bank assets as a percentage of bank assets, liquid liabilities to GDP, private credit by deposit money banks to GDP, and bank deposits to GDP. Using the ARDL approach, the findings of the study reveal that the direction of causality between financial development and economic growth in Uganda is not clear-cut. It varies from one model to the other, depending on the proxy used for financial development. When financial development is proxied by liquid liabilities to GDP and bank deposits to GDP, a unidirectional causal flow from financial development to economic growth is found to prevail. When deposit money bank assets to bank assets ratio is considered a proxy of financial development, astrong bi-directional causal relationship between financial development and economic growth is found to predominate. However, when money supply to GDP and private credit by deposit money banks to GDP are used as proxies, no causality is found to exist between financial development and economic growth in either direction. Based on these results, it is recommended that when drafting policies aimed at boosting economic growth, policymakers should target growth-led financial development proxies as policy implementation outcomes may vary depending on the targeted financial development proxy. [ABSTRACT FROM AUTHOR]

The aim of this study is to measure the technical efficiency of commercial banks in Democratic Republic of Congo (DRC) and to analyze its determinants. To achieve this goal, on an unbalanced panel of 10 commercial banks observed from 2005 to 2019, the Data Envelopment Analysis (DEA) followed by two Truncated Regression (TR) models and the Stochastic Frontier Analysis (SFA) were used. Return on Equity (ROE), loans, deposits, female workforce, number of branches, type of ownership, seniority, liquidity ratio, inflation rate, money supply growth rate, key interest rate and required reserve ratio are the significant covariates identified in this study. In addition, the most technically efficient sampled banks are: BOA, Ecobank, Equity Bank, Rawbank, Sofibanque and TMB. However, in terms of cost-efficiency, commercial banks in DRC operate on a sub-optimal scale. [ABSTRACT FROM AUTHOR]

The objective of this study was to examine the effect of monetary policy and private investment on green finance in the case of Hungary. The study used an explanatory research design and a quantitative research approach. Quarterly secondary time series data over 8 years (2013–2020) were utilized. More specifically, the study used Johnson co-integration test and vector error correction model to investigate the long and short-run relationship among variables. The study's findings imply that monetary policy, as measured by interest rates and the broad money supply, has a mixed effect on the level of green financing. Interest rates, in particular, have a negative and significant relationship with green finance in both the long and short run. However, a broad money supply has a positive but insignificant relationship with green finance in the long run. Private investment has a positive and significant relationship with green financing in both the long and short run. The study also used inward and outward foreign direct investment, and greenhouse gas as a control variable of the study. The study finding implies that inward foreign direct investment has a positive and significant relationship with green financing in both the long and short run. On the other hand, outward foreign direct investment and the level of greenhouse gas have a negative and significant relationship with green finance in both the long and short run. The study also discovered that over time series, disturbance in domestic private investment was the most determinant factor in forecast error variance of green financing. In addition, the result of document analysis shows that the majority of Hungarian credit institutions are dealing with their corporate strategy rather than their sustainability strategy. Hence, progressive approaches are needed from the credit institution to frame their strategy under the concept of sustainable development goals. The finding of this study will contribute to the existing literature on the study area, provide suggestions on green finance and green monetary policy approaches, provide implications on key stakeholders of green financing, as well as the experience of different economies. The study advises central banks, credit institutions, and regulatory authorities to consider both neoliberal and reformist approaches of green finance and green monetary policies in aid to increase green investment. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine a potential case of interdependence in loan and deposit interest rate setting. Design/methodology/approach: The authors set up a theoretical microsimulation model with endogenous loan interest rate determination via a learning algorithm. Findings: The authors show that in certain environments, it may be beneficial for large banks to incorporate information on retail funding costs into the lending rate setting decision. Originality/value: The author's model is based on the realistic money creation mechanism. [ABSTRACT FROM AUTHOR]

This research has been conducted to investigate foreign direct investment and its impact on macroeconomic performance in Pakistan. This paper analyzes whether foreign direct investment and its indicators have significantly affected Pakistan's economic performance. In this research, economic performance is measured in the form of an index. While foreign direct investment with its indicators gross fixed capital formation, remittances, reserves, money supply and credit to private sectors by the bank is analyzing the economic performance. We conducted various econometric models: Bound test, Autoregressive distributed lag (ARDL) model and Error Correction model. In the empirical section, the findings of the bound test have proved the existence of long run ARDL. The empirical analysis of long run ARDL has proved the positive and significant influence of foreign direct investment, gross fixed capital formation, remittances and reserves on economic performance in Pakistan. While money supply and credit have no direction to affect the economic performance in Pakistan. In the end, the error correction model evidenced the significant impact of foreign direct investment and its indicators on Pakistan's economic performance in the short run. Moreover, the findings of the error correction model have stabled the error from short run to long run. The overall findings of empirical analysis evidenced the positive and significant impact of foreign direct investment on economic performance in Pakistan. [ABSTRACT FROM AUTHOR]

Theory of Islamic banking is based on neoclassical theory of money and banking which assumes that money is a neutral lubricant that facilitates exchange while bank is an intermediary institution that equates savings and investments in the economy. Endogenous money supply has demonstrated the fallacy of these assumptions by showing that it is not the deposits that create loans, rather the other way round. Unlike commodity money, modern money is credit, generated by the central and commercial banks in the process of advancing reserves and loans. When this correct version of money and banking is evaluated in the light of the correct understanding of riba, it becomes evident that modern money involves riba and this result is equally valid for Islamic banking. Genuine Islamic monetary and banking systems require commodity money, which may include gold and silver, such that its face value is equal to its intrinsic value and it does not represent credit. Riba is not merely a matter of eliminating the institution of interest from economic system, it is about eliminating credit‐based monetary or financial system because credit creation is as much riba as is charging interest. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the relationship between financial development (FD) and monetary policy effectiveness (MPE) on output and inflation in ASEAN-3 countries (Singapore, Malaysia and the Philippines). Design/methodology/approach: This study uses an open economy structural vector autoregressive model to generate MPE. Then, an autoregressive distributed lagged (ARDL) model is used to analyze the effect of FD on MPE across countries. Findings: The findings revealed that FD plays a different role in MPE across countries. In Malaysia, a more developed financial system tends to reduce the MPE on output, whereas in Singapore, results show that the more developed financial system (stock market capitalization) tends to increase MPE on output. However, in the Philippines, the main results show that the effect of FD (liquid liabilities) upon MPE on output is depending on the policy variable (interest rates or money supply). Originality/value: This paper fills this gap by providing the first study of ASEAN-3 countries in examining how effective is a monetary policy in response to the development of the financial market across the country. Second, this paper considers two FD indicators, namely, the banking sector and capital market development in investigating its effect on MPE on output and inflation. Third, the authors construct the MPE in each country using a structural (identified) VAR model by aggregating the response of output growth and inflation rate on monetary policy changes (interest rate and money supply) using impulse–response function. Regarding this, the results of this study provide new empirical evidence and insight into the long debate on the relationship between FD and the MPE. [ABSTRACT FROM AUTHOR]

14 Wayne Brough, "In the Race over Digital Money, China Is Leaving US in the Dust", RealClearPolicy, October 28, 2020, https://www.realclearpolicy.com/articles/2020/10/28/in the race over digital money china is leaving us in the dust 582153.html. 15 I Inclusive Banking During a Pandemic: Using FedAccounts and Digital Tools to Improve Delivery of Stimulus Payments i : Hearing before the US I House of Representatives Committee on Financial Services Task Force on Financial Technology i , 116th Cong. (June 11, 2020) (statement of J. Christopher Giancarlo, former Chairman of the US Commodity Futures Trading Commission), https://financialservices.house.gov/uploadedfiles/hhrg-116-ba00-wstate-giancarloj-20200611.pdf. While digital currencies may be new to actors in the global economy, the evolution from paper money to digital currencies is part and parcel of the longer-term history in how currencies have evolved to address the changing needs of human society. Governments now appear to be catching up in the digital currency revolution Governments now appear to be catching up in the digital currency revolution, albeit slowly. As governments build digital money for these domestic reasons, they also act in response to digital money projects in counterpart governments. [Extracted from the article]

The increase in the lending rate in Nigeria has affected the borrowers in the financial system and it has invariably reduced the pace of economic activities in the country. Such a situation created the need to examine the impact of the lending rate on bank lending in Nigeria. The study made use of ex-post facto research design. The data collected from the Central Bank of Nigeria Statistical Bulletin in the period 1981-2018 were subjected to Autoregressive Distributed Lag (ARDL) method of regression analysis. The analysis included the macroeconomic variable growth of bank lending, which is a proxy for bank lending, and the independent variables: lending rate, deposit growth, foreign exchange rate, liquidity rate, money supply, and GDP growth. The findings revealed there is a long-run relationship among the variables of the study. It was also discovered that the lending rate and liquidity ratio are inversely related to the growth of bank lending. Deposit growth and money supply both have a positive significant impact on the growth of bank lending. The monetary authorities should encourage banks to attract more deposit as this has a significant impact on the credit ability of the banks. A periodic review of the lending rate and liquidity ratio of the banks in the economy should also be carried out as these have a significant impact on the lending in the economy. Future researchers could extend the research by carrying out a cross country study in order to ascertain whether these variables will generate the same or a contradicting result. [ABSTRACT FROM AUTHOR]