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Promoting financial stability is one of the main priorities for the governments of countries seeking to achieve sustainable economic growth. The article aims to assess and model the impact of macroeconomic factors on the financial stability of the Russian Federation in the period 2010-2030 using ADF, OLS, VAR, ARCH, VECM and other techniques. In addition, the linear causal relationship between a group of 6 macroeconomic indicators and the financial stability of the Russian Federation was studied. The results of this research show that Russia's financial stability depends mainly on exports of crude oil and natural gas, price stability, volume of government debt, deficits and surpluses of the state's budget, exchange rate stabilization of national currency, and effectiveness of the banking system. Additionally, events taking place in Eastern Europe, the Middle East and the African continent may negatively affect Russia's financial security if it fails to take the necessary preventive measures. [ABSTRACT FROM AUTHOR]

This paper introduces a dynamic dependence framework to calculate various indicators of systemic sovereign default risk. Our analysis reveals a notable increase in systemic fragility among euro-area sovereigns since the onset of the Subprime Crisis, particularly during the First Greek Bailout in May 2010. Furthermore, our measures successfully capture key events within the euro area, including Mario Draghi's impactful "whatever-it-takes" speech in mid-2012 and the Cypriot Banking Crisis of 2012-2013. The incorporation of dynamic dependence into our measures provides a more comprehensive depiction of systemic risk within the euro area sovereign system, often demonstrating distinct dynamics when compared to their static counterparts. These findings carry significant policy implications and contribute to enhancing our understanding of systemic risk among euro-area sovereigns. [ABSTRACT FROM AUTHOR]

Luigi Pasinetti voiced his objections to the Stability and Growth Pact (SGP) at its very inception, in the late 1990s. The SGP has by now been in existence for almost one-quarter of a century. Its historical trajectory has proven its critics right, while its repeated revisions over time have increased its complexity and ineffectiveness to the point where the European Commission embarked on a process of overhaul, ending in a new EU fiscal governance framework. In the present article, we argue that Pasinetti's objections remain valid today, twenty-five years after he exposed them in a series of articles. The new version of the Stability and Growth Pact remains focused on debt reduction, ignores the role of money and of finance and keeps fiscal policy apart from the rest of the economy. The chances that it will succeed where its previous versions failed appear slim. [ABSTRACT FROM AUTHOR]

The European Union's (EU) ambition is to encourage clearing at EU Central Counterparties (CCPs) and with EU clearing members (CMs). This is to reduce reliance on systemic non-EU CCPs, and to build a more attractive and robust EU clearing market. To achieve this, the European Market Infrastructure Regulation (EMIR) 3.0 requires EU CMs and clients subject to the clearing obligation to hold active accounts at EU CCPs. Although it is very unlikely that the watered-down compromise will fulfil the EU's ambition, more importantly it still risks diminishing the competitive position of EU companies, leading to EU clients who do not fall under the clearing obligation to use non-EU CMs, and directing non-EU clients' euro-denominated interest rate swaps trading activity towards non-EU dealers. This seems contradictory to the policy objective of building a strong EU Capital Markets Union (CMU). With regard to supervision, EMIR 3.0 is a missed opportunity for a centralised supervisory framework. Just enhancing the current decentralised supervision mechanism, which is based on cooperation and information sharing between National Competent Authorities (NCAs), is not enough. A European centralised supervisor will not only strengthen risk monitoring and (eventually) minimise systemic risks but will also reduce supervision costs, the number of procedures, divergent interpretations of EMIR rules and the exchange of data. Whereas the main focus with regard to EMIR 3.0 was geared towards the active account requirement and whether or not to centralise supervision of EU CCPs, regulators and market participants would be ill advised to let discussions over third-country CCP equivalence issues distract them from other important and persistent challenges in the derivatives clearing markets. There are currently three pressing issues that require attention: clearing access and capital rules, portability and clearing models, as well as liquidity and collateral optimisation. A failure to address them risks undermining the key driver for derivatives clearing, which is increasing financial stability. [ABSTRACT FROM AUTHOR]

The paper focuses on the relationship between cryptocurrencies and economic policy uncertainty (EPU) shocks by adopting robust econometric techniques. Results on monthly data from 2016 to 2022 confirm that the volumes of cryptos are stationary, and the short- and long-run impacts of uncertainty shocks are significantly positive, and, in most cases, begin to show already in the first six months after the shock. When uncertainty significantly prevails, investors increase their demand for cryptos. The ARDL(12,11) specifications for Bitcoin show a significant increase in volumes of around 1% occurring over a year after a unit increase in economic policy indices. Conclusions from the findings are related to supervision, and monitoring of markets and financial stability. [ABSTRACT FROM AUTHOR]

This investigation utilized the Midlife in the United States Survey (N = 3,258) to assess the relationships between sexual assault, sense of control, and financial stability. Age of first sexual assault and sexual assault revictimization were also considered in analyses of sexual assault survivors' data. Results revealed consistent associations between experiences of sexual assault and revictimization with lower financial stability and suggest that sense of control may be an indirect mechanism linking these variables. Findings have policy relevance and practical implications for practitioners. Restoring sexual assault victims' internal loci of control may promote more positive financial outcomes. [ABSTRACT FROM AUTHOR]

This study investigates the impact of financial stability on environmental degradation in Turkey, controlling for economic growth, renewable energy consumption, and primary energy consumption between 1990 and 2019. The study employs various statistical methodologies, including LS Unit Root, Fourier ARDL, DOLS, and FMOLS tests. The findings reveal an inverse relationship between financial stability and environmental degradation. Both economic growth and primary energy consumption are found to exacerbate environmental degradation. This study recommends that policymakers incorporate financial stability into policies aimed at reducing CO2 emissions. Furthermore, it emphasizes the importance of investing in renewable energy infrastructure and the transportation sector to effectively mitigate environmental degradation. [ABSTRACT FROM AUTHOR]

• We assess the impact of herding/anti-herding on stock-bond correlations in the US. • We find that corporate bonds exhibit herding and stocks anti-herding. • Both these patterns dampen the correlation between US stocks and corporate bonds. • This effect is largely noise-driven in nature. • High uncertainty, optimism and economic outperformance strengthen this effect. We examine investors' herding/anti-herding behavior in the US stock and corporate bond markets and their impact on stock-bond return correlation. Corporate bonds exhibit herding, with stocks displaying anti-herding. Bond herding and stock anti-herding are weakly related, with each significantly dampening the stock-bond return correlation. This effect is largely driven by their irrational components, affecting mostly the correlation of noise-driven stock and bond return elements, more so during periods of elevated uncertainty, optimistic sentiment and excessively positive economic performance. As the irrational forces in each asset class (stocks; bonds) countervail each other, this implies greater stability and resilience for the financial system. [ABSTRACT FROM AUTHOR]

This study investigated a network of financial institutions in Korea using the Korea Consumer Credit Panel (KCCP). It is assumed that each consumer borrows from multiple institutions, so those institutions share risks from the same consumers regardless of the quality or type of loan. We constructed a financial network comprising those institutions and computed a contagion index based on their interconnections using a weight of probability of default for the individual borrowers. We found strong connection between banking institutions and credit card firms because of the convenience of making small loans using credit cards. However, with a weighted probability of default to the linkages among institutions, the connections between banking institutions and savings banks, non-credit card finance corporations and merchant banks are stronger than others, while banking institutions hold a central position and are exposed to the largest amount of loans individually. The contagion index hit a peak in 2013Q1 and then fell rapidly, before fluctuating at a relatively low level from 2016 to 2017Q2. The results enabled authorities to monitor systemic risk from the level of consumer credit, while accounting for specific types of consumers and their probability of default. This paper's main contribution is its construction of a network of financial institutions from the level of consumer credit. [ABSTRACT FROM AUTHOR]

In the wake of the COVID-19 pandemic, the Russian war of aggression against Ukraine and the resurgence of the Middle East conflict, government measures to support the economy have intervened massively in economic activity and thus influenced the real insolvency situation. This situation creates disruptive conditions in insolvency counselling and requires comprehensive risk management for the strategic safeguarding of internal processes in insolvency counselling companies. Despite a number of academic articles that address a lack of risk awareness in insolvency counselling, there have been no valid statistical surveys on this topic to date. The topic has also been largely ignored in practice. This article presents a study that examines risk management in insolvency advisory companies in the context of government intervention in the global economy from 2020 to 2023. The aim of the research is to assess the necessity and existence of risk management in these companies. A survey of 350 insolvency advisors was conducted between March and April 2024, from which 113 complete data sets could be analysed. The central hypothesis of the research study is that a significant majority of insolvency advisory companies have insufficient risk awareness and do not implement comprehensive risk management strategies. The survey results confirm that risk management is rarely practised and that a well-founded risk awareness is lacking in most consulting companies. It is noteworthy that two-thirds of those surveyed consider the benefits of risk management to be low, although more than half of those surveyed recognise increased risks due to government crisis measures. Ultimately, this study concludes with a recommendation that a standardised EU insolvency regulation could offer the greatest benefits for the insolvency sector, as it would simplify risk management for consultants in all member states. [ABSTRACT FROM AUTHOR]

This study explores the evolution of price-to-book (P/B) ratios among European banks from 2005 to 2020, a period where most banks in different countries had a P/B ratio below 1. By dissecting banks' accounting equity into investor contributions and earnings-derived components, this research aims to evaluate how each component of equity affects these ratios and investigates whether their dynamics shifted during the period. We address a gap in prior research that has not extensively examined how individual equity components affect the overall P/B ratio. This aspect is crucial, especially in scenarios where the increase of specific components compensates for declines in others, thereby stabilizing total equity values. Our methodology involves regression analyses using a panel data model with random effects. The findings reveal that earnings-related equity components significantly influence P/B ratios. In contrast, investor contributions, which strengthen the solvency of the entity, appear to have a minimal impact. Additionally, our analysis highlights a significant quadratic relationship between the P/B ratios and both the profit or loss reported on Income Statements and distributed dividends. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Professional Business Review (JPBReview) is the property of AOS: ESTRATEGIA & INOVACAO 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.)

Our study offers insights into the role of investor behavior during periods of turmoil and its impact on the financial sphere. Interestingly, this study aims to establish the influence of investor heterogeneity, investor sentiment, and corporate investor behavior on the dynamics, investment strategies, and financial stability of financial markets. The included studies focus mostly on crises observed during the last decade with diverse origins, distinct mechanisms, and valuable lessons. This study highlights that investor behavior and financial crises play central roles in financial market dynamics, driving investor decisions, strategies, and, consequently, financial stability. These contributions are valuable for academics, practitioners, policymakers, and regulators in this field. [ABSTRACT FROM AUTHOR]

Carbon emissions, ecological pollution and a steadily rising global temperature have been widely acknowledged as the most severe risks to human survival in the last few decades. Alarming increases in global temperature and sudden climatic shifts are nature's way of warning us to curb the use of fossil fuels and adopt more sustainable practices. Therefore, the present study investigates the impact of financial stability, environmental regulations and uncertain economic policies on carbon emissions and investment in renewable energy. The study used a nonparametric DEA‐DDF technique to fulfil this objective using a balanced panel dataset comprising 28 Chinese provinces from 2011 to 2021. Overall results demonstrated that financial stability reduces carbon emissions and accelerates investment in renewable energy projects. The findings imply that a financially stable economy like China encourages businesses to invest in cutting‐edge, environmentally friendly technology to boost productivity while reducing carbon emissions. Likewise, results show that stringent ecological regulations decrease carbon emissions and promote investment in renewable energy. Hence, stakeholders are keen to comply with environmental regulations in China to reduce carbon emissions by investing in renewable energy resources to avoid penalties. Finally, results suggest that uncertain economic policies increase carbon emissions and restrict access to credit from financial institutions for investment in renewable energy purposes in China. Findings imply that uncertainty in economic policies could lead to less environmentally friendly production practices that may increase carbon emissions and reduce the demand for renewable energy products. [ABSTRACT FROM AUTHOR]

In modern times, economic security stands as one of the primary strategic objectives for any state. However, achieving economic security is unattainable without the stable operation of enterprises. Amidst a constantly evolving external environment, the economic security of enterprises becomes a prerequisite for their survival. To this end, evaluating the financial indicators of enterprises and identifying areas for improvement are imperative. The state of an enterprise’s financial indicators is traditionally regarded as the primary factor ensuring its economic security, as these indicators reflect the ultimate outcome of its operations. To analyze the financial indicators of an enterprise effectively, it is essential to establish evaluation criteria and parameters. The significance of accurately defining criteria for evaluating the financial indicators of a company primarily stems from the necessity to ensure its security and formulate and execute effective management decisions. Relevance of the topic. Today, enterprises operate amidst various uncertainties such as crises, pandemics, inflationary processes, and price fluctuations observed worldwide. In such conditions, enterprises are compelled to operate efficiently, compete for market influence and income, accurately assess and enhance financial indicators, and identify, analyze, and neutralize negative effects that may threaten economic security. Conversely, enterprises should promptly analyze their financial indicators to develop a set of measures aimed at bolstering their competitive positions and enhancing the efficiency of their operations. These aspects underscore the relevance of the article’s topic. The purpose of the article is to study financial indicators, their evaluation, determination of resources for increasing profit and profitability, and the impact of those indicators on the financial activity of enterprises and economic security. Evaluating the financial indicators of enterprises aims to determine the indicators for analyzing their current financial situation and identifying areas and actions required to enhance these indicators. Additionally, it involves exploring methods to influence the economic security system of enterprises through the improvement of financial indicators. Achieving these objectives necessitates accurate assessment, forecasting, and management decisions to enhance the financial situation of the enterprise. Research methods. The article was written using theoretical-methodical approaches, systematic approach, comparative analysis, factor analysis, graphic analysis and economic-statistical methods. Scientific innovation. It is justified that evaluating the financial condition of an enterprise and assessing its economic security complement and depend on each other, being inseparably linked. Economic security can only be fully ensured in conditions of continuous financial development. It has been established that when evaluating the financial condition of the enterprise, all its economic indicators should be monitored, enabling the enterprise to swiftly and effectively adapt to changing environmental conditions. Given these considerations, the importance of closely examining, enhancing, and bolstering the financial stability of an enterprise’s financial indicators in ensuring economic security has been justified. Additionally, the authors have proposed the primary directions for improving the financial indicators of an enterprise. [ABSTRACT FROM AUTHOR]

University management systematically faces the problem of objectively assessing the financial stability of higher education institutions (HEIs). This challenge arises due to the influence of external drivers, including the instability of institutional support, changes in approaches, reductions in budget funding, the consequences of the Covid-19 crisis, war, population migration abroad, destruction of the material and technical base of HEIs, a decrease in the solvency of the population, and the psychological status of employees. In the paradigm of this study, the financial stability of universities is investigated as their ability to form a positive financial space, create value propositions considering time demands, ensure income growth and diversification, rational distribution of resources, maintain liquidity and solvency, and respond flexibly and quickly to the challenges of the time. The purpose of the article is to methodologically justify and practically implement the integral assessment of the financial stability of universities based on the point method, utilizing both static and dynamic approaches. The information base of this study comprises data from the Unified State Electronic Database on Education as of October 1 of the reporting year, financial information, and rectors’ reports for the years 2017 to 2022, which were published on the websites of the Higher Education Institutions. The sample includes 35 HEIs of Ukraine, varying in types (classical, polytechnic, pedagogical, economic, and others), scale, and location. The main results of the study are as follows: - a three-criterion approach to determining the integral indicator of financial stability: the first criterion is contingent (scale), encompassing indicators demonstrating changes in student numbers according to public and private forms of education, the ratio of teacher supply to applicants, the level of budget allocations and private financing per student, and expenses for wages per student; the second criterion is cash flows, represented by liquidity indicators and a financial cushion; the third criterion is income and expenses, including indicators characterizing the change in income, their diversification, the level of income per 1 student and teacher, the share of marginal income, the ratio of income and expenses, the coefficient of coverage of fixed expenses by income; -the method of calculating the integral indicator of financial stability based on static and dynamic approaches was justified and tested using the example of 35 HEIs in Ukraine; - four types of financial stability of universities were established according to the maximum value of the integral indicator: stable (41–50 points), normal (31–40 points), risky (21–30 points), and crisis (20 or fewer points). The method of calculating the integral indicator of financial stability of universities proposed in the article is a tool for making tactical and strategic decisions by university management. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between financial development and economic growth in Albania from 2012 to 2022, emphasizing how various aspects of financial development -- particularly financial inclusion, stability, and institutional quality -- impact economic performance. Employing quantitative analysis of secondary data, the research explores the effects of key financial indicators such as banking services efficiency, stock market development, and access to credit on macroeconomic outcomes. Findings reveal that significant enhancements in financial systems correlate positively with economic growth, highlighting the crucial mediating roles of improved financial inclusion, market stability, and governance (Demirgüç-Kunt et al., 2018). These results underscore the importance of robust financial infrastructure in fostering sustained economic development, especially in transitional economies like Albania. By providing empirical evidence from a unique transitional context, this study contributes to the literature by detailing specific mechanisms through which financial development can facilitate economic growth. It suggests that policymakers focus on strengthening financial frameworks to optimize economic outcomes. Future research could broaden these insights by incorporating qualitative methods and additional financial indicators. This research holds relevance for economic strategists and policymakers aiming to enhance economic growth through targeted financial sector improvements. [ABSTRACT FROM AUTHOR]

This study explores the correlation between economic growth and financial stability among upper-middle-income countries in APEC, such as Indonesia, China, Malaysia, Mexico, Peru, Russia, and Thailand from 2013 to 2023. It employs a simultaneous equation approach. The motivation for this research lies in securing the well-being of future generations, as effectively managing current economic growth and financial stability will foster investment in future welfare. This lays the groundwork for sustainable and inclusive economic progress over time. Key findings indicate a mutually beneficial relationship between financial stability and economic growth. The study underscores the importance of bolstering financial stability through measures like increasing capital adequacy ratios and credit private sector, while also managing credit card usage and interest rates. Moreover, it suggests that fostering economic growth requires enhancing credit private sector, alongside managing interest rates, unemployment, and poverty. The study recommends that governments of upper-middleincome APEC countries implement macroprudential policies effectively. This strategic approach aims to uphold both financial stability and interconnected economic growth, thereby mitigating systemic risks that could otherwise harm the economy. [ABSTRACT FROM AUTHOR]

This paper investigates the complex factors hindering entrepreneurial aspirations in Lebanon, focusing on the absence of a functional financial system and its impact on entrepreneurial intentions. Drawing on surveys conducted with 325 Lebanese participants across three generations, using ordinal regression, the research reveals crucial determinants of entrepreneurial intentions, emphasizing the roles of entrepreneurial attitude, the absence of banking sector services, optimism, risk propensity, and age. Positive attitudes and optimism correlate with stronger intentions; however, the weakened economic situation and lack of a functional financial system diminish this positive correlation. Demographic factors like gender and education do not significantly influence intentions. In addition, the study reveals differences in entrepreneurial intentions determinants across the three generations of X, Y, and Z. This study underscores the urgent need for financial system reforms in Lebanon to enhance stability while advocating for financial literacy programs and private sector initiatives to empower entrepreneurs and expand their businesses. [ABSTRACT FROM AUTHOR]

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

Transitioning to a low‐carbon economy will entail sweeping transformations of energy and economic systems. A growing research body has raised concerns about the effect of such strain on financial stability. This literature on "financial transition risk" has highlighted that the conjunction of climate policy, technological change and shifts in consumption patterns may propagate to financial markets. In extreme cases, these dynamics may result in a "Climate‐Minsky" moment with systemic implications. The field has developed quickly, covering many methods and research questions. While this expansion in literature is advantageous when studying a complex issue like the low‐carbon transition, it also comes with downsides. The large number of methods hampers result comparison, and the integration of research designs. It also makes it difficult to provide a synthetic view of results in the literature as well as identify remaining uncertainties. To bridge these gaps, I propose a critical review of the literature. I examine three sub‐fields: the asset stranding literature, the direct assessment of transition risks through prospective models and the financial empirics of the low‐carbon transition. I expound their main results, critically assess underlying methodologies and propose a framework to compare results. The review ends by suggesting some avenues for future research. [ABSTRACT FROM AUTHOR]

The financial system is becoming more and more interconnected at an international level. This interconnection can lead to widespread financial shocks and crises around the globe. However, there is not a clear and unique understanding of the impact of financial concentration over interconnectedness and systemic risk. In the last decades, there has been a considerable development in the applications of network theory to finance. These advances allow us to study, at a network level, the effect of financial concentration on the degree of financial interconnection, leading to robust evidence about this relationship. This is specially relevant in the current context of fusion waves happening in some European countries, fostered by the supervisory and regulatory agencies. The objective of this paper is to unveil the relationship between financial concentration and financial interconnectedness by employing network models. This paper applies the Exponential Random Graph Model to a multiplex financial network connecting some of the main countries of the international financial system in different layers. As each layer represents a different set of monetary and financial institutions, this approach leads to a rich understanding of the relationship between the variables because it is possible to see how it operates at many levels. We find that financial concentration decreases the number of relationships between the agents of the international financial network. We also find that the volume of assets that a country has leads to a similar result, whilst the number of monetary and financial institutions increases it. Finally, we find that the ERGM is a valid methodology to inquire the behavior of a relationship of this kind. The model does not allow to study the dynamic behavior of the network. Thus, other kind of methodologies are necessary in order to achieve results about how the relationship evolves over time. [ABSTRACT FROM AUTHOR]

This study investigated the causal interactions between macroprudential policy, measured by the Macroprudential Policy Index (MPI), and financial cycles represented by the Aggregate Financial Cycle (AFC) and the Credit and Asset Prices Financial Cycle (CAFC) in South Africa from 1970q1 to 2023q2. Additionally, the study explored the effects of macroprudential policy during different phases of financial cycles. Using the time-varying Granger-causality model, the study found that the MPI Granger-caused financial cycles during the 2003/07 credit boom in South Africa, while the AFC and CAFC Granger-caused macroprudential policy during the Covid-19-induced collapse of financial markets. The results suggest that macroprudential policy is employed more proactively during financial booms and more reactively during financial busts in South Africa. The Markov switching dynamic regression model used to assess the MPI's effects revealed that macroprudential policy's effectiveness is stronger during financial busts and weaker during financial booms in South Africa. This is because financial institutions in South Africa tend to resist stricter regulations during boom phases due to heightened optimism about future prospects. Conversely, they are more receptive to stimulatory interventions during bust phases. Based on these findings, it is recommended that the South African Reserve Bank and the Prudential Authority use macroprudential policy more assertively during financial booms to enhance its effectiveness. This could involve setting more stringent parameters upon activating macroprudential policy tools or complementing macroprudential policy with monetary policy during financial booms. [ABSTRACT FROM AUTHOR]

Copyright of Modern Economic Science is the property of Modern Economic Science Editorial Office 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.)

Central bank independence (CBI) has been one of the most significant regulatory state developments of the last three decades. Following the 2008 financial crisis, many central bank mandates were extended to include a responsibility for financial stability. Some commentators claim this jeopardizes CBI by drawing central banks into contested political issues that can impact financial stability, in what we term an independence in decline thesis. Through a detailed study of the Bank of England's financial stability communications employing the Comparative Agendas Project (CAP) codebook, we subject this independence in decline thesis to scrutiny. We show that since the extension of the Bank's mandate in 2011, Bank officials have discussed a wider range of more contentious policy issues. However, these communications appear to date to have largely reinforced the Bank's reputation for technical competence and political neutrality. In this sense, central bank "communicative agency" can be deployed to protect CBI performatively, while CBI can in turn be studied and understood as an ongoing communicative performance act. We find that repoliticization is a more contingent process than much central banking literature has allowed for, while financial stability communications are a potentially powerful regulatory instrument deserving of more scholarly attention. [ABSTRACT FROM AUTHOR]

The experience of flexible inflation targeting in ASEAN‐5 has been favorable. The present paper shows improvements in macroeconomic outcomes consistent with the framework's mandated objectives: lower levels and volatility of inflation, more stable economic growth, and a well‐functioning financial system. Using difference‐in‐difference approaches, we find that, for ASEAN‐5 and developing countries, the inflation targeting framework mainly benefits adopters in terms of reducing inflation levels. In response to the challenges emanating from capital flow volatility and domestic financial imbalances, over the past 20 years, ASEAN‐5 policy frameworks have continuously evolved to incorporate various policy tools. These include, among others, foreign exchange intervention, macroprudential policy, and capital flow measures. A multitude of policy tools is arguably one of the key factors contributing to sound macroeconomic outcomes during the post‐targeting periods. [ABSTRACT FROM AUTHOR]

Global uncertainty is a time when unexpected events occur that have a negative impact on a company. Unforeseen world situations lead to economic disaster. Therefore, decisions must be made quickly, correctly, and appropriately so as not to affect the entire operation of the organization. This is a clear action to reduce negative impacts. A crisis is an event that can destroy a company, its employees, its products, and its services. and the company's financial health, such as the spread of the coronavirus. Serious financial conditions can result from an economic disaster that is not managed. Events that have wide-ranging social impacts are considered crises. The financial reputation of commercial companies may be permanently damaged by this crisis. For this reason, this study aims to examine whether economic factors affect the financial stability of family businesses. Structural equation modeling techniques were used to analyze the data. There are more than 269 family companies listed on the Thai Stock Exchange. (Stock Exchange of Thailand: SET) Research results show the financial impact of Thai family businesses on business factors. The global economy is important in the current economic crisis. As a result, preparing to deal with both negative and positive economic situations may be related to and affect the ability of family businesses to maintain financial stability amid global economic instability. This study examines the financial stability of family businesses by selecting key factors including net profit margin (NPF), return on assets (ROA), and return on equity (ROE) in an unstable economy in Thailand. In the Stock Exchange of Thailand by the study of economic factors and financial stability of family businesses in Thailand. The empirical results using the Panel Regression Model and Robustness Tests exhibit that P>[z] and sectoral indices have a relationship and effect in the short term, and the coefficients in the period of t-1 are significantly positive and negative at the statistical significance at the 0.01, 0.05 and 0.10 level. In the long term have a relationship and effect with Banking, Finance, Economics and Business. [ABSTRACT FROM AUTHOR]

We explore the potential outcomes for financial stability when using peer‐to‐peer lenders to finance economic activity. Combining Random Regression Forests, a machine‐learning process, with an agent‐based model, we perform simulations on artificial economies with various degrees of adoption of peer‐to‐peer lending. We find that as peer‐to‐peer lenders proliferate, there is increased financial instability, lower GDP and higher unemployment. On the other hand, peer‐to‐peer lending increases the total volume of loans given out but demonstrates a preference towards consumer loans (over corporate loans), which has a negative effect in the long run. Finally, introducing peer‐to‐peer lenders increases the access of the unbanked to services which conventional banking is not able to offer within the extant regulatory framework. Our results can help policymakers as they address the issue of regulation in the peer‐to‐peer finance industry. [ABSTRACT FROM AUTHOR]

This paper highlights the procyclical and unstable behaviour of mutual funds, characterized by a varying sensitivity on common asset pricing factors. It proposes a novel factor model that allows for regime changes associated with macroeconomic and financial state variables. Estimated on a panel covering 825 US equity mutual funds over a period of 30 years, it appears that the yield curve, the dividend yield, short term interest rates and the industrial production coincide with regimes switches in the Fama–French factors. Furthermore, the estimated regimes coincide with financial crises and economic downturns, thus confirming the procyclical behaviour of mutual funds' returns. These findings, coupled with the emerging systemic role of mutual funds, promote the consideration for a specific macroprudential regulatory framework targeted at the mutual fund industry. [ABSTRACT FROM AUTHOR]

Financial institutions operating in a stable financial system seem to be willing to support the realization of the sustainable development goals (SDGs). This view assumes that financial stability is crucial for sustainable development. We investigate the effect of financial stability on sustainable development. We use a unique financial stability index, sustainable development index and four SDG indicators. We analyse 26 countries from 2011 to 2018 using the system GMM method. The findings of the sustainable development index analysis show that financial stability has a significant effect on the level of sustainable development and the effect is negative in Asian countries. European and Asian countries have a high sustainable development index compared to African countries. The result of the individual SDG analyses show that financial stability has a significant effect on SDG3. Financial stability has a negative effect on SDG10 in Asian countries and a negative effect on SDG3 during periods of economic prosperity. Financial stability has a positive effect on SDG3 and SDG7 in countries where the banking system have high capital buffer. The results show that the effect of financial stability on sustainable development depends on how sustainable development is measured. [ABSTRACT FROM AUTHOR]

Purpose: Empirical studies, to date, show that financial inclusion (FI) enhances financial stability (FS) by promoting a large deposit base, reducing information asymmetry, and strengthening market power on the one hand, and leads to financial fragility by expanding credit without proper screening, increasing operational costs, and provoking borrowers' moral hazard on the other. Thus, the most important issue is to maintain FS while extending formal financial services to the impoverished and disadvantaged segments of society. Therefore, this paper investigates the efficacy of macroprudential regulations (MPRs) to align these policy divergences. Design/methodology/approach: To accomplish the objective and facilitate policy implications, the authors use aggregated and disaggregated measures of both FI and MPRs, employ advanced econometric models that minimize endogeneity and ensure robustness, and investigate their joint effectiveness in upholding FS using data of 138 countries spanning the 2004–2017 years. Findings: The findings indicate that the effectiveness of MPRs is instrument specific. Some MPRs that obstruct access to formal financial services, in particular, moderate the advantage of FI in achieving FS, while others boost the effect of inclusion in attaining financial sector stability. Therefore, prudence should be emphasized while designing MPRs as a tool for aligning the policy trade-off between FI and FS. Originality/value: To the best of the authors knowledge, this paper extends previous empirical research by investigating the conditioning impact of MPRs in the FI-FS nexus. [ABSTRACT FROM AUTHOR]

In the context of growing economic uncertainty, capital structure optimization is becoming a critical tool for minimizing financial risks, providing companies with the necessary stability and adaptability in modern conditions. This paper aims to develop theoretical foundations for the existing capital structure optimization methods and elaborate an optimal capital structure formation strategy to ensure companies’ financial stability and flexibility in conditions of high financial uncertainty. The article offers a stabilization-flexible approach to optimizing companies’ capital structure in financial instability and crises, making it possible to ensure the companies’ financial stability while preserving their ability to adapt to a volatile environment quickly. The main idea of the approach is the balanced use of equity capital and long-term and short-term liabilities to finance various components of assets, which helps to minimize risks and increase the efficiency of financial management. A roadmap for the implementation of the stabilization-flexible approach to optimizing the capital structure has been formed, the basis of which is the construction of a logical chain of actions, including the definition of companies’ goals, the assessment of available financial resources and risks, and the development of financing strategies, their implementation, further control and monitoring of results. The study results can be helpful for financial managers, analysts, and investors seeking to improve the efficiency of capital management and reduce the impact of external and internal risks on the financial condition of companies.

This paper aims to identify the role of monetary policy in ensuring not only price stability but also financial stability for the central bank of Tunisia. We employ the generalized method of moments on quarterly data during the period 2000-2020 for the Tunisian context to estimate various types of monetary policy rules. We compare the standard Taylor rule with the augmented version that incorporates non-performing loans as a financial variable. Our findings indicate a significant and positive impact of this variable on the monetary policy reaction function. Furthermore, our analysis highlights the ability of monetary policy to effectively balance the trade-off between its dual objectives of price and financial stability.

The aim of this study is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability, and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by Islamic banks. The study employs the fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data from 2013 to 2022. The findings indicate strong evidence that Islamic banking finance supports economic growth and improves financial system stability. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, reinforcing this link. Furthermore, oil rents in Saudi Arabia (KSA) have contributed to improving economic development and supporting the financial sector’s development to achieve economic diversification as outlined in the Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. AcknowledgmentThis work was supported and funded by the Deanship of Scientific Research at Imam Mohammad Ibn Saud Islamic University (IMSIU) (grant number IMSIU-RPP2023024).

This paper explores the factors affecting the financial stability of publicly traded companies. The sample includes non-financial companies listed on the prime and official markets of the Zagreb Stock Exchange from 2018 to 2022. In order to conduct the analysis, a variety of firm-specific, industry-specific and macroeconomic factors were utilized, encompassing company size measured with sales, liquidity expressed with the quick ratio, leverage, earnings per share, Covid-19 dummy variable and inflation. Additionally, financial stability was measured using a variant of the Z-score indicator. The results of the analysis conducted using Arellano-Bond dynamic panel model reveal that variables that are statistically significant in explaining financial stability are size, liquidity, and earnings per share with all three having positive influence on the financial stability of Croatian listed non-financial companies.

Green banking combines operational improvement, technological advancement, and modifications to client behavior in commercial banking. Activities in environmental, social, and corporate governance (ESG) management are part of the banking industry's adoption of sustainable green banking. The goal of ESG disclosure in banking organizations is to spur market growth, boost consumer confidence in banking goods and services, and give investors essential information for making investment decisions. This study intends to empirically demonstrate the impact of audit firm affiliation and financial stability on the degree of disclosure of sustainable green banking. A banking firm with an observation period of 2019–2022, listed on the Indonesia Stock Exchange, serves as the study's sample. The quantitative data used in this study were taken from published annual reports. Purposive sampling is a strategy used to obtain data. The study's independent variables are affiliation with an audit firm and financial stability as measured by return on equity (ROE). While the Environment, Social, and Governance Index (ESGI) will be used as a proxy for the dependent variable in this study, which is the degree of sustainable green banking. The natural logarithm of total assets is employed in this study's control variable for business size. The hypothesis being investigated is that the development of sustainable green accounting is positively influenced by financial stability and affiliation with audit firms. Several regression tests are used to evaluate this hypothesis. The findings of this study are intended to give banking organizations a general overview of the value of sustainable green banking in enhancing investor trust and improving their capacity to compete in the capital market.

In modern times, economic security stands as one of the primary strategic objectives for any state. However, achieving economic security is unattainable without the stable operation of enterprises. Amidst a constantly evolving external environment, the economic security of enterprises becomes a prerequisite for their survival. To this end, evaluating the financial indicators of enterprises and identifying areas for improvement are imperative. The state of an enterprise’s financial indicators is traditionally regarded as the primary factor ensuring its economic security, as these indicators reflect the ultimate outcome of its operations. To analyze the financial indicators of an enterprise effectively, it is essential to establish evaluation criteria and parameters. The significance of accurately defining criteria for evaluating the financial indicators of a company primarily stems from the necessity to ensure its security and formulate and execute effective management decisions. Relevance of the topic. Today, enterprises operate amidst various uncertainties such as crises, pandemics, inflationary processes, and price fluctuations observed worldwide. In such conditions, enterprises are compelled to operate efficiently, compete for market influence and income, accurately assess and enhance financial indicators, and identify, analyze, and neutralize negative effects that may threaten economic security. Conversely, enterprises should promptly analyze their financial indicators to develop a set of measures aimed at bolstering their competitive positions and enhancing the efficiency of their operations. These aspects underscore the relevance of the article’s topic. The purpose of the article is to study financial indicators, their evaluation, determination of resources for increasing profit and profitability, and the impact of those indicators on the financial activity of enterprises and economic security. Evaluating the financial indicators of enterprises aims to determine the indicators for analyzing their current financial situation and identifying areas and actions required to enhance these indicators. Additionally, it involves exploring methods to influence the economic security system of enterprises through the improvement of financial indicators. Achieving these objectives necessitates accurate assessment, forecasting, and management decisions to enhance the financial situation of the enterprise. Research methods. The article was written using theoretical-methodical approaches, systematic approach, comparative analysis, factor analysis, graphic analysis and economic-statistical methods. Scientific innovation. It is justified that evaluating the financial condition of an enterprise and assessing its economic security complement and depend on each other, being inseparably linked. Economic security can only be fully ensured in conditions of continuous financial development. It has been established that when evaluating the financial condition of the enterprise, all its economic indicators should be monitored, enabling the enterprise to swiftly and effectively adapt to changing environmental conditions. Given these considerations, the importance of closely examining, enhancing, and bolstering the financial stability of an enterprise’s financial indicators in ensuring economic security has been justified. Additionally, the authors have proposed the primary directions for improving the financial indicators of an enterprise.

University management systematically faces the problem of objectively assessing the financial stability of higher education institutions (HEIs). This challenge arises due to the influence of external drivers, including the instability of institutional support, changes in approaches, reductions in budget funding, the consequences of the Covid-19 crisis, war, population migration abroad, destruction of the material and technical base of HEIs, a decrease in the solvency of the population, and the psychological status of employees. In the paradigm of this study, the financial stability of universities is investigated as their ability to form a positive financial space, create value propositions considering time demands, ensure income growth and diversification, rational distribution of resources, maintain liquidity and solvency, and respond flexibly and quickly to the challenges of the time. The purpose of the article is to methodologically justify and practically implement the integral assessment of the financial stability of universities based on the point method, utilizing both static and dynamic approaches. The information base of this study comprises data from the Unified State Electronic Database on Education as of October 1 of the reporting year, financial information, and rectors’ reports for the years 2017 to 2022, which were published on the websites of the Higher Education Institutions. The sample includes 35 HEIs of Ukraine, varying in types (classical, polytechnic, pedagogical, economic, and others), scale, and location. The main results of the study are as follows: - a three-criterion approach to determining the integral indicator of financial stability: the first criterion is contingent (scale), encompassing indicators demonstrating changes in student numbers according to public and private forms of education, the ratio of teacher supply to applicants, the level of budget allocations and private financing per student, and expenses for wages per student; the second criterion is cash flows, represented by liquidity indicators and a financial cushion; the third criterion is income and expenses, including indicators characterizing the change in income, their diversification, the level of income per 1 student and teacher, the share of marginal income, the ratio of income and expenses, the coefficient of coverage of fixed expenses by income; -the method of calculating the integral indicator of financial stability based on static and dynamic approaches was justified and tested using the example of 35 HEIs in Ukraine; - four types of financial stability of universities were established according to the maximum value of the integral indicator: stable (41–50 points), normal (31–40 points), risky (21–30 points), and crisis (20 or fewer points). The method of calculating the integral indicator of financial stability of universities proposed in the article is a tool for making tactical and strategic decisions by university management.

The banking sector stability determines the financial immunity of a national economy. Current economic and political tensions precondition the need for predicative diagnosis of factors behind a decrease in a bank’s financial stability taking into account national specificities. The paper aims to explore the impact of intrabank parameters on a risk of deteriorated financial stability of Russian banks. The methodological basis of the study is the theory of financial management as applied to the banking practice. The research methods include content analysis, multiple regression, and logit modelling. The evidence comes from the published financial statements of Russian banks for 2018–2023. The paper suggests an approach for rating banks according to their financial stability and develops logit models for evaluating the risk of losing financial stability based on the CAMELS parameters. The analysis demonstrates a noticeable positive impact of the return on assets and a noticeable negative effect of the overdue loans share on a bank’s financial stability. At the same time, capital adequacy and current liquidity produce an ambiguous effect on the financial strength: they are significant only up to a certain point, after passing which they no longer exert any impact on the financial stability (the so-called “surplus paradox”). The study finds that the impact of the parameters differs for the mediumand long-term forecasting horizons: for a 6-month period, the return on assets is a more significant predictor of the financial instability risk, while the overdue loans share is more important for a 12-month period. The findings extend the understanding of the influence that bank’s internal factors have on their financial stability and can be useful in building the algorithms for analysing and forecasting banking risks.