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In the overlapping global emergencies of the pandemic, climate change and geopolitical confrontations, supply shocks have become frequent and inflation has returned. This raises the question of how sector-specific shocks are related to overall price stability. This paper simulates price shocks in an input–output model to identify sectors which present systemic vulnerabilities for monetary stability in the United States. We call these prices systemically significant. We find that in our simulations the pre-pandemic average price volatilities and the price shocks in the COVID-19 and Ukraine war inflation yield an almost identical set of systemically significant prices. The sectors with systemically significant prices fall into four groups: energy, basic production inputs other than energy, basic necessities, and commercial infrastructure. Specifically, they are "Petroleum and coal products," "Oil and gas extraction," "Utilities," "Chemical products," "Farms," "Food and beverage and tobacco products," "Housing," and "Wholesale trade." We argue that in times of overlapping emergencies, economic stabilization needs to go beyond monetary policy and requires institutions and policies that can target these systemically significant sectors. [ABSTRACT FROM AUTHOR]

We analyze the distributional effects of macroprudential policy on mortgage cycles by exploiting the U.K. mortgage register and a 2014 15% limit imposed on lenders' high loan-to-income (LTI) mortgages. Constrained lenders issue fewer and more expensive high-LTI mortgages, with stronger effects on low-income borrowers. Unconstrained lenders strongly substitute high-LTI loans in local areas with higher constrained lender presence, but not high-LTI loans to low-income borrowers—consistent with adverse selection problems—implying lower overall credit to low-income borrowers. Consistently, policy-affected areas experience lower house price growth postregulation and, following the Brexit referendum (negative aggregate shock), better house price growth and lower mortgage defaults for low-income borrowers. [ABSTRACT FROM AUTHOR]

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

The European Union (EU) and its member states are the world's largest development donor, but the European financial architecture for development suffers from well-documented problems of fragmentation. EU member states' decision to convene the Wieser Group in April 2019 raised expectations over rationalising the roles of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). However, the Council of the EU showed little enthusiasm for the group's call to create a single entity for external development finance. Twelve months later, member states endorsed Team Europe, an alternative approach which mobilises the resources of the EIB, the EBRD, the European Commission and national development finance institutions in support of shared development goals. This article seeks to explain why the Council ultimately preferred Team Europe's coordinated approach to the Wieser Report's centralised vision of a European Climate and Sustainable Development Bank. In keeping with new intergovernmentalism, we find that member states' willingness to cooperate but reluctance to delegate, and the aim of EU institutions to protect their turf, favoured Team Europe. We see few reasons to expect radical changes in this domain despite continued doubts over the effectiveness and coherence of European development finance. [ABSTRACT FROM AUTHOR]

The study examines the impact of board attributes, ownership structures and other bank-specific factors on bank risk-taking. Using a sample of 220 banks in 16 sub-Saharan Africa countries for the years 2007–2018, the findings of the study are fourfold. First, the findings indicate that independent directors who are financial experts reduce bank risk-taking. Second, the study finds that the number of board meetings has a negative impact on bank risk-taking. Third, the estimation results suggest that government and foreign ownership encourage banks to take more risks. Finally, the study observes that institutional shareholder ownership influence bank risk-taking negatively. We observe that an increase in the ownership stake held by long-term institutional investors is associated with a decrease in risk-taking. Furthermore, we show that the predicted relationships vary across different periods. The findings are robust to different types of endogeneities and alternative measures of bank risk-taking. The study concludes that different corporate governance characteristics have different implications for banks' risk-taking in the region. The findings have key policy implications for banking practitioners, regulators, and policy makers in the region. [ABSTRACT FROM AUTHOR]

We assess the relation of macroprudential policy and competition to bank risk for a sample of 1373 banks from 13 East Asian countries, using the IMF iMaPP dataset of macroprudential policy from 1990 to 2018. To our knowledge, this is the first paper to include both macroprudential policy and individual bank market power, as well as their interaction, as determinants of bank risk. On the one hand, we find direct effects of both macroprudential policy and competition on risk, in line with the existing literature. On the other hand, we detect important interaction effects. Notably in the developing and emerging East Asian countries, the interactions between competition and macroprudential measures often show a lesser response to such measures in terms of risk reduction for banks with more market power. We suggest that this links in turn to ability of such banks to undertake risk-shifting in response to macroprudential policy. We also find for banks in advanced East Asian countries—and in wider samples—some tendency in the long term for banks facing intense competition to take relatively more risks in face of macroprudential measures, in line with the traditional "franchise value" view of bank competition and risk taking. These findings have important implications for regulators. [ABSTRACT FROM AUTHOR]

Economic literature suggests that banks change their dividend payouts for three main reasons. They may be willing to signal good future profitability to shareholders to address information asymmetry, or use dividends to mitigate the agency costs, or could come under pressure from prudential supervisors and regulators to retain earnings. The COVID-19 pandemic led to introduction of sector-wide recommendation by regulators to suspend dividend payouts in view of prevailing large uncertainty. Using a panel data approach for two samples of listed and unlisted European banks, this paper provides evidence that, over a decade and a half preceding the pandemic, bank dividend payouts were adjusted in line with the three motivations found in the literature. The results are robust to selection of alternative variables representing these motivations. Banks are however found not to discount expectations about future economic conditions or their own profitability when making payouts. Simulations shown in the paper suggest that, in the absence of supervisory recommendations, banks would likely have reduced the payouts only slightly in the first year of the pandemic. [ABSTRACT FROM AUTHOR]

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]

The World Bank has been called the most influential organization in education reform globally. Not only is it the single largest funder of education for international development, but it also produces knowledge, circulates discourse, and structures policymaking processes in ways that extend its influence far beyond its primary role as a bank. However, while much literature has been produced about the World Bank, the field of education lacks a systematic discussion of what has been reported about how the World Bank influences policy formation at the country level. Through the conduct of a theoretically informed systematic literature review of 70 publications, this article clarifies and provides examples for the numerous ways that the World Bank influences policy formation. In all, the article documents 11 pathways through which the World Bank influences policymaking. The article concludes by suggesting areas where research on the World Bank can be improved, namely, through more explicit attention to the theoretical and methodological approaches employed. The goal of this review is to encourage scholars to be more specific in their conceptualizations and discussions of World Bank influence, to go beyond general claims of policy imposition or agenda shaping. [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]

Purpose: This research attempts to examine bank dividend policy in Indonesia by applying the life cycle theory of dividends. Design/methodology/approach: This research used secondary data gotten from two sources: banks' annual financial statements from 2005 to 2019 and the number of observation samples was 510 from 42 banks. Random Effects Logit Model (RELM) is used to detect the influence of independent variables on Propensity to Pay Dividends (PPD) and Random Effects Tobit Model (RETM) is used to test the influence of independent variables on Dividend Payout Ratio (DPR). Findings: The RELM results show that Retained Earnings to Total Equity (RE/TE), Retained Earnings to Total Asset (RE/TA) and bank age have a positive impact on the propensity to pay dividends (PPD) while bank growth (GRW) has a negative impact. The RETM results reveal that RE/TE, ROA and bank size have a positive impact on the dividend payout ratio (DPR) while GRW has a negative impact. This analysis also discovers that the capital adequacy ratio (CAR) and Non-performing Loans (NPL) is one important factor considered by banks in Indonesia in determining their dividend policy. Research limitations/implications: This study contributes to enriching literature in finance, especially in the life cycle theory of dividends. Also, it can be a guide to consider by investors before deciding to put their shares in banks in Indonesia. Originality/value: Research on bank-specific life cycle theory is very difficult to find, especially in the Indonesian context, so this research can enrich the body of knowledge on dividend decisions. [ABSTRACT FROM AUTHOR]

In this paper, we build a simple model on the role of households' liquidity preference in the determination of economic performance. We postulate, for the sake of the argument, a purely 'horizontalist' environment, i.e., a world of endogenous money where the central bank is able to fix the interest rate(s) at a level of its own willing. We show that even in such a framework liquidity preference, while obviously not constituting anymore a theory for the determination of the interest rate, continues to be a key element for the determination of both the level and evolution over time of aggregate income and capital accumulation. In our model, this happens because of the working of a mechanism so far unexplored in the literature, i.e., the endogenous variations of banks' policy of profits' distribution in response to changes in the liquidity preference of the public. [ABSTRACT FROM AUTHOR]

Supervision is important for the entire financial system since it plays the role of a stabilizer; it seeks to create a healthy environment for financial institutions, and in particular for banks. Bank supervision is considerably more challenging than that of other institutions because of the opacity and complexity of bank assets. We explore the impact of supervision on the risk, profitability, and growth of Tunisian banks. The empirical study focused on 210 annual reports of almost all Tunisian banks during the 2010–2019 period. Banking supervision effectiveness is measured by enforcement outputs (i.e. on-site audits and sanctions). The generalized least squares method of multivariate analysis was used to analyze our panel data.The results show that supervisory and regulatory measures applied during this period have a negative impact on bank risk and profitability. This means that stricter banking regulation and supervision reduce both the risk and profitability of banks. Our results also show that intense supervision reduces the growth of loans for Tunisian banks. Our results have important implications for the decision-making of bank managers and regulators in Tunisia as well as for relevant actors in similar emerging economies. Strengthening further banking supervision policy is still needed by the central bank of Tunisia, i.e. the bank regulator. [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 (1) measure the financial sustainability ratio (FSR) of banks in Indonesia During the pandemic covid 19; (2) test the impact of the implementation of POJK No. 11/2020 concerning National Economic Stimulus as a counter-cyclical policy impact pandemic covid 19 to FSR banking. The study used 38 conventional commercial banks in Indonesia with an observation period of 36 months, calculated from 1 year before the implementation of POJK No. 11/POJK.03/2020 and 1 year after implementation. The data analysis method used a non-parametric Wilcoxon signed rank test. The study results indicate significant differences in the financial sustainability ratio of conventional commercial banks in Indonesia before and after implementing POJK No.11/2020. The average FSR calculation after policy implementation is lower than before implementation. This indicates that the restructuring policy has not been able to improve bank performance which has an impact on increasing the sustainability ratio. The results study this expected to contribute significantly to bank managers, Bank Indonesia, and the Financial Services Authority. The results of this study can be used as a base evaluation effectiveness application of policy government. For Bank Indonesia, the results study could be used to design a policy that could increase banking FSR due to the Covid-19 pandemic. [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]

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]

Purpose: This paper aims to propose a dynamic stochastic general equilibrium (DSGE) model for the State Bank of Vietnam (SBV) to assess the response from the household sector to monetary policy shocks through the consumption function. Moreover, the transmission from monetary policy to household consumption and income distribution is experimented with through the vector autoregression (VAR) model. Design/methodology/approach: In this study, the authors used the maximum likelihood estimation to estimate the DSGE and VAR models with the sample from 1996Q1 to the end of 2021Q4 (104 observations). Findings: The DSGE model's results show that the response of the household sector is as expected in the theory: a monetary policy shock occurs that increases the policy interest rate by 0.29%, leading to a decrease in consumer spending of about 0.041%, the shock fades after one year. Estimates from the VAR model give similar results: a monetary policy shock narrows income inequality after about 2–3 quarters and this process tends to slow down in the long run. Research limitations/implications: Based on the research results, the authors propose policy implications for the SBV to achieve the goal of price stability, and stabilizing the macro-economic environment in Vietnam. Originality/value: The findings of the study have theoretical contributions and empirical scientific evidence showing the effectiveness of the implementation of the SBV's monetary policy in the context of macro-instability, namely: flexibility, caution and coordination of different measures promptly. [ABSTRACT FROM AUTHOR]

The role of asset quality in impacting bank lending has been examined in several studies. What has however not been examined is how asset quality interacts with monetary policy to influence bank lending or what is popularly referred to as the asset quality channel of monetary transmission. Employing data during 2011–2020, we examine whether there exists an asset quality channel of monetary transmission for MENA country-banks. The findings provide strong support in favour of an asset quality channel of monetary transmission. In particular, the baseline results suggest that a one percentage point increase in the impairment ratio leads to a decline in bank lending by 11%. These findings differ across key bank characteristics such as profitability, capital and funding costs for conventional versus Islamic banks. Relatedly, macroprudential policies play an important role in arresting asset quality deterioration. [ABSTRACT FROM AUTHOR]

Buildings are responsible for around 45% of total energy consumption and one-third of CO2 emissions annually in Switzerland. Policymakers have argued that an increased rate of energy-saving retrofits in existing buildings will play a critical role in meeting the energy and climate policy goals. This article examines the determinants for the households' investment decisions to undertake energy-efficient retrofits and investigates the role of policy measures. We estimate random effects probit models using a rich data for 1663 owned single-family Swiss households for retrofits undertaken during 2010 to 2014. Results suggest that while the building vintage appears to be a relevant determinant; energy-related attitudes of decision makers and policy instruments are also likely to play an important role. In particular, we find a suggestive evidence of tax deduction policy in supporting households' decisions to undertake energy-saving retrofits as well as the intensity of renovation. Direct monetary policies such as tax deductions should be focused particularly upon poorly insulated old buildings and those that rely on non-renewable energy sources for heating purposes. [ABSTRACT FROM AUTHOR]

This research aims to analyze the implementation of green banking and the policies implemented in it. The macro approach is carried out through literature studies by collecting secondary data such as scientific articles, planning documents, government policies, and the mass media as well as data related to this research. Data analysis was carried out qualitatively by implementing green banking in several aspects, namely, in the internal bank, in customer service, and during financing. And in its implementation, it has fulfilled the principles of the green banking concept which includes 4 elements of life, namely nature, well-being, economy, and society. [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]

This study investigates the impacts of global economic policy uncertainty (GEPU) and domestic (Chinese) economic policy uncertainty (CEPU) on the long-run volatility of the tourism stock market in China based on an improved GARCH–MIDAS–X model. Empirical results reveal that both CEPU and GEPU have significant negative effects on the long-run volatility of China's tourism stock market. It is further identified that the impact of GEPU on tourism companies' performance is short-lived. The findings suggest that tourism-related practitioners should monitor both CEPU and GEPU when conducting risk assessments related to tourism investment and policymaking. [ABSTRACT FROM AUTHOR]

This study investigates how competition and loan loss provisions (LLP) affect stability by including the variable of LLP as a moderating factor introduced as a new variable in the research framework. This study used panel data from 2012 to 2021 from Indonesia's largest banks by assets. This study will analyze competitiveness, loan loss provision, and stability using moderated regression. This study determined long-term and short-term results using VAR/VECM. At the short-term level, competition did not significantly affect stability, while stability had a more significant effect on competition. However, increased competition seems to improve banking stability in the long run. The role of allowance of impairment losses varies depending on the period, with its negative impact on stability in the short-term. This study uses loan loss provision (LLP) as a moderating variable to examine the extent to which competition enhances stability. Internal banking policies must strengthen understanding of the impact of loan loss provisions and ensure effective risk management practices. In addition, banks must consider long-term strategies in managing competition by maintaining a balance between healthy competition and sound risk management to achieve long-term stability. [ABSTRACT FROM AUTHOR]

In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese Banking and Insurance Regulatory Commission policies using a VAR model. We find that CBIRC policies are predicted by State Council construction policies and policies set by the State Administration of Foreign Exchange. This indicates that the CBIRC is inward-looking, observing what other regulators are doing rather than responding to changes in the real and financial economy. This may be a product of market distortions due to China's unique blend of state-oriented and market-based institutions. [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]

The overnight money market rate is a key monetary policy tool. In recent years, central banks worldwide have developed new monetary policy strategies aimed at keeping its deviations from the policy rate small and short-lived. This paper describes the main instruments used for this purpose by the US Fed, the ECB and the BoE and also their policy responses to the Great Financial Crisis (GFC). Fractional integration and long-memory methods are then applied to investigate how those affected the persistence of policy spreads (i.e. the difference between overnight rates and policy rates) during different sub-periods. It is found that this increased sharply during the GFC but has fallen back in recent years. In the case of the ECB the introduction of the new €-STR benchmark in particular appears to have made monetary policy more effective. [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]

Since the global financial crisis burst in 2008, central bankers have been at centre stage in addressing its negative consequences across the economic systems of many countries. This has been further noticed in the aftermath of the pandemic crisis that erupted at the beginning of 2020 at global level, when a number of governments did intervene also in a rather 'unconventional' way to support economic activity through public spending. In both circumstances, central bankers have been in a position to satisfy private interests of the relevant stakeholders even though this has been affecting both income and wealth distribution against the common good. This paper investigates the political benefits that these 'unconventional' policy interventions have elicited in advanced economies to point out the political and distributional consequences of them, suggesting an alternative monetary policy stance that considers climate-related issues. [ABSTRACT FROM AUTHOR]

The study endeavors to explore policies and procedures related to banking which are hindering Pakistan's trade with Central Asia (CA) and to find solution for these problems. The methodology used has conducted secondary analysis of relevant literature, qualitative data collection in the form of qualitative interviews and content analysis of policy documents. The study found that besides trade complementarity there is huge trade potential between the economies of CA and Pakistan. It also found out that with most CA countries this potential is being missed by Pakistan. Reason for this loss is gaps in banking policy of Pakistan. Study recommends a plan be implemented by SBP; that solves the LC opening and implementation problems being faced by traders of Pakistan, for all the CA countries. It also recommends private banks should be incentivized by the SBP to open and operate branches in CA countries. [ABSTRACT FROM AUTHOR]

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]

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Using the Austrian Business Survey between 2011 and 2016, we study how firms' individual credit market experiences influence their beliefs about the bank lending policy. Firms that have recently experienced a loan rejection are more likely to believe that the lending policy is restrictive. We see similar effects for firms that were granted loans, but with conditions worse than anticipated. Exploiting the panel structure shows that firms without recent credit market experience are less likely to change their beliefs, which converge towards the middle category. Our findings are in line with theories of rational inattention and with asymmetric experience effects. [ABSTRACT FROM AUTHOR]

This article examines the effectiveness of the banking‐lending channel in the transmission of monetary policy mechanisms in the West African Economic and Monetary Union. We estimated a Dynamic Stochastic General Equilibrium model with an incomplete credit market, where the financial system is based on an active banking sector and the central bank follows a fixed exchange rate regime, using quarterly data from 1985Q1 to 2020Q4. Findings reveal that, first, monetary policy induces an expansionary effect in the real economy when the banking sector loosens borrowing constraints. Second, we found that the banking sector is sensitive to the contraction of monetary policy via its effects on lending rates and deposit rates. Third, findings show that the bank‐lending channel amplifies and propagates monetary policy transmission mechanisms into the real economy. The counterfactual analysis demonstrates that the level of financial depth within the currency union enhances the efficiency of the bank‐lending channel of the monetary policy transmission mechanism. The macroeconomic outcomes and the financial implications of monetary policy via bank‐lending channels are more accentuated for the economies of the currency union with more financial depth than for those with shallow financial sector depth. [ABSTRACT FROM AUTHOR]

Customers churn is an important issue that is always concerned by banks, and is put at the forefront of the bank's policies. The fact that banks can identify customers who are intending to leave the service can help banks promptly make policies to retain customers. In this paper, we propose a combined deep learning network models to predict customers leaving or staying at the bank. The proposed model consists of two levels, Level 0 consists of three basic models using three Deep Learning Neural Networks, and Level 1 is a logistic regression model. The proposed model has obtained evaluation results with accuracy metrics of 96.60%, precision metrics of 90.26%, recall metrics of 91.91% and F1 score of 91.07% on the dataset "Bank Customer Churn Prediction". [ABSTRACT FROM AUTHOR]

This article investigates the role of local banking development, per se, in European SME debt policies, using a cross-country dataset. Moreover, it assesses whether the debt policies of SMEs are mainly driven by local or national banking development. We find that higher levels of local banking development increase the amount of debt used by SMEs. Results suggest that national banking institutions reduce the influence of local banking sectors on SME financial behavior. Several robustness and further tests validate our results, suggesting that whilst the process of international integration and digitalization of financial markets, local banking development is still relevant despite the moderating role of national banking policies. Consequently, policy makers should first and foremost allow headquarters and central banks to better support local banks in integrating national banking policies in order to reduce the financial constraints on SMEs and spur their economic growth. [ABSTRACT FROM AUTHOR]

Indonesia has great economic potential with abundant natural resources. However, so far Indonesia is still trapped in the global value chain as an exporter of raw materials. This causes the added value obtained by Indonesia to be low and the Indonesian economy does not grow optimally. The Indonesian government has realized this problem and has issued various policies to encourage downstream investment. This research aims to analyze the downstream regulations for strategic investment in the growth of Indonesia's leading sectors. This research uses normative legal research methods. Research data was obtained from a study of documents and laws and regulations related to downstream investment. The data analysis technique used is qualitative analysis. The data obtained were analyzed using descriptive and interpretive methods. The research results show that the Indonesian government is using an acceleration strategy to increase investment to increase the rate of downstream investment in leading sectors for national economic growth. Regulations for the downstreaming of strategic investments in the growth of leading sectors are regulated in several policies including Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, mandating that no longer export raw materials, Law Number 3 In 2014 regarding Industry, OJK issued a policy in the banking industry to support the acceleration program for Battery-Based Electric Motor Vehicles (KBL BB) as well as the development of its upstream industry. [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 impact of macroprudential policies on the nexus between economic uncertainty and bank risk in emerging Asian economies. We construct our index of economic uncertainty by applying the Generalized Autoregressive Conditional Heteroskedasticity (GARCH)-in-mean model to a series of important macroeconomic variables, and borrow macroprudential policy indices from Cerutti et al. (2017) and Alam et al. (2019). Using bank-level panel data from approximately 600 commercial banks in 11 emerging Asian economies during the period 2000–2016, we find consistent evidence that bank risk increases with economic uncertainty, while macroprudential measures play an ameliorative role in uncertainty-induced bank risk. Our baseline findings are largely driven by macroprudential measures that aim to dampen the credit cycle more than those that target increasing the resilience of the banking sector. Our further analyses of the heterogeneous impacts of macroprudential measures by specific type on the risk of banks show that liquidity-based instruments, reserve requirements and currency instruments play a more conspicuous role in the economic uncertainty‒bank risk nexus than capital-based and asset-side macroprudential instruments. [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]

Policymakers frequently use guarantees to mitigate panic‐based runs in the financial system. We analyze a binary‐action coordination game under the global games framework and propose a novel intervention program that screens investors based on their heterogeneous beliefs about the system's stability. The program only attracts investors who are at the margin of running, and their participation boosts all investors' confidence in the financial system. Compared with government guarantee programs, our proposed program is as effective at mitigating runs but features two advantages: it costs less to implement and it is robust to moral hazard. [ABSTRACT FROM AUTHOR]

We empirically document two adjustment margins that are usually absent from the predominant "bank balance sheet lending" view of financial intermediation. For the shadow bank substitution margin, shadow banks substitute for traditional banks among loans that are easily sold. For the balance sheet retention margin, banks switch between balance sheet lending and selling loans based on their balance sheet strength. Estimates from a structural model show that these margins significantly shape policy responses, dampening the effect of capital requirements on lending whose costs are borne by wealthier borrowers. Secondary-market disruptions such as quantitative easing have significantly larger impacts on lending than capital requirements. [ABSTRACT FROM AUTHOR]

This article provides a summary of two books that examine the role of civil servants in organizations and their impact on policies. The first book focuses on the World Bank and its policy development over 32 years, while the second book explores the influence of globalization on civil service systems in four Middle Eastern and North African countries. Both books offer valuable insights into the role of professionals in organizations and their influence on policies. The article also discusses the influence of globalization on national civil service systems, particularly in Jordan, Lebanon, Morocco, and Tunisia. It emphasizes the importance of evaluating development policies from both international and national perspectives. [Extracted from the article]

How relevant are government-owned banks in the economy, especially during recessions? We study the role of government-owned banks in a dynamic stochastic general equilibrium (DSGE) model with heterogeneous financial intermediaries, heterogeneous households, and minimum capital requirement constraints. We show that the capitalization of government-owned banks during recessions smooths the effects of a negative shock and helps the economy recover more quickly. However, these stabilizing effects could be partially offset by banks' inefficiency in transforming one unit of capital into loans. Therefore, ignoring the heterogeneity between private and government-owned banks may lead to misleading assessments and conclusions regarding the effects of economic policies on the macroeconomic and banking variables. This is particularly important for evaluating the effectiveness of macroprudential policies. [ABSTRACT FROM AUTHOR]

We investigate the joint optimal risk management and capital structure decisions of banks when they use contingent-convertible (CoCo) futures contracts to hedge financial-sector risk. In spite of banks choosing significantly higher leverage ratios, their default probabilities drop appreciably while their equity values increase, allowing banks to compete more favorably with the shadow-banking system. Banks' value-maximizing decision to hedge financial-sector risk unintentionally leads to an economy with extremely low aggregate bank default rates across all future states of nature. Thus, CoCo futures offer a powerful microprudential and macroprudential policy tool. That banks choose not to hedge financial-sector risk in practice is consistent with managers internalizing bank bailouts. [ABSTRACT FROM AUTHOR]