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Purpose: The purpose of this paper is to fill the momentous gap by explicitly investigating the asymmetric effects of monetary policy (MP) on non-bank financial intermediation (NBFI) assets. Design/methodology/approach: The authors utilized panel data from 29 countries for the period of 2012–2020 and used the quantile regression estimation. In addition to simultaneous quantile regression (SQR), the authors also employ quantile regression with clustered data (Parente and Silva, 2016) and the generalized quantile regression (GQR) method (Powell, 2020). Findings: The empirical results show a significant heterogeneous impact of MP. While there is a positive relationship between MP and NBFI assets ("waterbed effect") at lower quantiles of NBFI assets, at middle and higher quantiles, MP has a negative impact on NBFI assets ("search for yield" effect). The authors further find that negative impact strengthens as the quantile levels of NBFI assets rise from mid to high. Findings also reveal that "procyclicality" (except higher quantile) and "institutional demand" hypotheses hold. However, regarding "regulatory arbitrage," mixed results are observed indicating the impact of Basel III requirements. Originality/value: Previous empirical studies have concentrated on either the Dynamic Stochastic General Equilibrium (DSGE) framework or conditional mean regression approaches and delivered mixed findings of the MP effects on NBFI. The current paper takes a step toward dealing with this issue by deploying quantile regression methodology, which shows the impact of MP on NBFI at different conditional distributions (quantiles) of NBFI assets instead of just NBFI's conditional mean distribution. [ABSTRACT FROM AUTHOR]

The rise of asset managers as key nodes of financial intermediation has been one of the most fundamental changes in the global economy over recent years. An emerging literature on asset manager capitalism (AMC) discusses these changes and its implications, though largely in the context of corporate governance in advanced capitalist economies. This paper expands the remit of the AMC literature to spaces outside the global capitalist core, and assesses its implications, based on quantitative data on asset manager allocations and flows, and qualitative data from semi-structured interviews. We find that despite the growth of asset managers' investments into emerging markets, their presence remains limited and that the threat of exit remains present but increasingly tied with global conditions and the composition of benchmark indices. We also find that asset managers' investments are increasingly focussing on bonds, and are heavily concentrated in a few companies and sectors, revealing a marginal rather than broad-based presence. Finally, we find very limited evidence that asset managers use their voice to influence corporate governance and macroeconomic policy. Overall, asset managers do not seem to fundamentally reshape the characteristics of financial subordination of emerging markets, and the characteristics of AMCs remain, for now, specific to advanced economies. [ABSTRACT FROM AUTHOR]

"Capital Wars: The Rise of Global Liquidity" by Michael J. Howell is a book that explores the relationship between financial flows and economic cycles. The author argues that economic cycles are driven by quantities of savings and credits, rather than inflation or interest rates. Howell discusses the concept of global liquidity, which refers to the worldwide aggregated funding liquidity, and its impact on the financial system. He also examines the roles of central banks, cross-border capital flows, and the rise of China in the global economy. The book concludes by highlighting the potential destabilizing consequences of current monetary policies and the need for a better understanding of the financial structure. [Extracted from the article]

This study explores the evolution of the music industry in the digital age by focusing on market intermediation. Drawing on Karpik's (2010) economics of singularities, it aims to understand how digital technologies have transformed cultural intermediaries in the context of the independent music market. More-than-human (n)ethnography supported by depth interviews and secondary data analysis is used to provide new insights into the persistent function of judgement devices in digitalised markets. The findings highlight the material and axiological affordances of judgement devices and show how they provide opportunities for consumers whose intentions affect the actions of judgement devices. Although digitalisation has enhanced consumer empowerment, our study also reveals how actors of the indie music market experience the persistence of power relations in the music industry and the paradoxes of digitalisation. By focusing on the complex nature of technocultural changes, this paper offers a nuanced understanding of the (un)changing role of cultural intermediaries in digitalised markets. [ABSTRACT FROM AUTHOR]

The author discusses the intermediation role of banks in channeling funds from savers to investors as researched by Ben Bernanke, and the possible limitations of the banking model of Douglas Diamond and Philip Dybvig. Topics covered include the conceptual reduction of theorizing economy without money, and the contextual depiction of theorizing the economy through money. Also noted is the challenge in contextual analysis of involving actual agents unlike those assumed in conceptual models.

The asset side of Islamic banks has two different portfolios running side by side, namely risk-sharing (PLS) and non-risk sharing (non-PLS) financing. The segregation of PLS and non-PLS financing has gathered some attention recently owning to its relative importance for sustainable economic output. This study attempts to analyze the impact of decomposed Islamic financing modes (PLS and non-PLS) with a particular focus on their impact on real economic activity. In addition, we moderated the relationship with asset quality of aggregate Islamic banking sector. Quarterly data from 2014 to 2021 have been sourced from datasets of the Islamic financial service board (IFSB), the International Monetary Fund (IMF), World Bank, and Central banks' data streams. Eleven countries have been selected based on the highest local and global share in global Islamic financial assets. Panel data regression model has been used in this study. The findings indicate that PLS financing is a weaker driver to channelize funds. However, industrial production output is significantly affected by non-PLS financing. Further the results suggest, Islamic finance–output nexus found to have a stronger relationship in the presence of higher asset quality of Islamic banks. The results show that firms mostly rely on non-PLS financing, due to reduced asymmetry and higher transparency in non-PLS contracts compared to PLS modes. The results have implications for governing bodies of Islamic financial system in boosting risk-sharing contracts and firms to limit agency conflicts arising from fluctuating cost of financing. [ABSTRACT FROM AUTHOR]

Purpose: Microfinance programs across the countries are designed on the self-help and peer pressure model, aim at microentrepreneurship development. Despite of significant studies on microfinance-supported microentrepreneurship (MSM), not a single literature examines it from the systems thinking. In addition to that, the extant literature did not look MSM from the behavioral perspectives. To address the above gaps, the present study aims to examine self-help group (SHG)-based microfinance programs from the systems approach using the Stimulus-Organism-Behavior-Consequence (SOBC) model. Design/methodology/approach: Information gathered from 786 women SHG members from four states of India through a structured interview schedule. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were conducted to process data. Additional statistical tests were performed to test the reliability and validity. Findings: It was found that the "positive stimulus" (social intermediation, financial intermediation and business development services) positively impacted; and "negative stimulus" (intermediation accountability, and intermediation assumption) negatively impact, to "motive" (attitude, subjective norms, and perceived control) for micro-entrepreneurship in the SHG-based microfinance. Further, "motive" positively predicted "behavioral intention"; the "behavioral intention" positively determined "consequences" of micro-entrepreneurship. Intermediation as stimuli acted as "input"; the motive and behavioral intention acted as the "process", and the consequence acted as the "output" in the SHG-based microentrepreneurship system. Originality/value: To the best of the author's knowledge, this paper is the first one to examine the behavioral systems of microentrepreneurship programs through the Stimulus-Organism-Behavior-Consequence (SOBC) model. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2022-0801 [ABSTRACT FROM AUTHOR]

This paper shows that the entry of a for-sale-by-owner platform reduces the intermediation pricing. Intermediary agents play a crucial role in connecting sellers and buyers across various markets. However, the emergence of digital platforms has provided more affordable channels for direct transactions, challenging the dominance of agents. In this study, we examine the impact of a for-sale-by-owner (FSBO) platform on real estate agents' listing prices. By using a natural experiment in China, we find that the introduction of the FSBO platform leads to a 2.8% decrease in listing prices, a percentage comparable to the commission rate typically charged by agents. The cost advantage provided by the FSBO platform appears to be the primary driver behind this price drop rather than selection bias in listings. Furthermore, the impact of reduced listing prices extends to the final sales price of the properties. These findings carry important policy implications for competition regulation of intermediaries. History: Catherine Tucker served as the senior editor. Funding: This work was supported by the startup grant at the Hong Kong Polytechnic University [1-BE6Y]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mksc.2022.0245. [ABSTRACT FROM AUTHOR]

This paper presents evidence on productivity growth in the South African banking industry in the last 30 years. The productivity measures we construct shed light on whether the development, increased contribution and influence of the banking industry have translated into lower cost of intermediation and improved productivity and efficiency of the banking sector. Our results show that there is no apparent trend in the unit cost of intermediation in the period 1993 to 2019, which is indicative of constant productivity. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to assess the effectiveness of the banking market discipline in relation to the development of Financial Technology (FinTech) startups. Design/methodology/approach: Using panel data collected from 144 banks in Indonesia from 2004 to 2018, this study's regression models were estimated using fixed effects with robust standard errors. Findings: This study finds that FinTech startups disturb bank deposits. Meanwhile, market discipline exists in Indonesian banks, as indicated by depositors' behavior with higher credit and liquidity risks. However, market discipline does not exist for bank insolvency risk, which is indicated by a significant and positive relationship with the dependent variable. Therefore, the higher the number of FinTech startups, the more effective the market discipline. Empirical findings also revealed that the joint impact between FinTech startups and bank risk is also important in explaining the difference in the effectiveness of banking market discipline. Practical implications: This study has policy implications for banks in mitigating risk associated with market discipline and instability of financial intermediation. Originality/value: This study offers a significant contribution to the empirical literature because it specifically explores the effectiveness of the banking market discipline by focusing on the joint impact of FinTech startups and bank risk on deposits. Furthermore, this study contributes to providing empirical evidence that links between FinTech startups and bank risk affect depositor behavior at government-owned, private, large and small, as well as nonmobile and mobile adoption banks. [ABSTRACT FROM AUTHOR]

The article develops the concept of 'unfree wage labour' that refers to a situation in which a worker must (temporarily and conditionally) give away possession of his labour power to a third party who then sells it to the buyers of labour power. From the perspective of contract freedom and legal equality, it seems irrelevant whether a worker sells his or her labour power to an employer or to an intermediary. However, there is no doubt that labour intermediation increases the economic dependence and social subordination of workers. First, given that the intermediary negotiates with the employer, the worker has a lower ability to influence the terms of employment. Second, given that he or she is a contract worker, they have a lower ability to engage in collective action in the company. Undoubtedly, this worker has significantly lower control over her or his working and living conditions. The question arises whether his or her contract freedom lessened to the extent that we can speak of unfree wage labour. [ABSTRACT FROM AUTHOR]

This paper analyzes the effects of informal finance on formal finance in West African Economic and Monetary Union (WAEMU) countries. To this end, it uses a Probit model with a binary endogenous regressor and data from the Global Findex database, 2021. The findings indicate that having already saved informally positively affects the behavior of individuals to save formally. They also indicate that informal financial credit positively affects formal financial credits in the WAEMU. These findings indicate that formal finance is complementary to informal finance in the WAEMU. On the other hand, the findings show that labour force participation, mobile banking use and online banking use increase the likelihood of use of formal and informal services in the WAEMU. This paper suggests that formal financial institutions (mainly banks and microfinance institutions) should strengthen their collaboration with actors (money keepers, itinerant bankers, tontines systems) involved in the provision of informal financial services to populations in order to improve formal financial intermediation in the WAEMU. [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]

In recent years, the use of cryptocurrencies has increased. As these currencies continue to play a larger role, they eventually will be an important component of banking system activity. Moreover, in addition to the standard role of financial intermediaries to facilitate lending, intermediaries can be valuable firms that help provide safekeeping of tokens. The objective of this paper is to demonstrate these important functions in a microfounded model of monetary exchange. Furthermore, we also consider the possibility that central banks issue their own digital currencies that may affect the level of intermediation in the private banking system. [ABSTRACT FROM AUTHOR]

Ben Bernanke and Charles Kindleberger both studied financial crises. One interpretation in monetary macroeconomics associates them over their endorsement of the credit view as opposed to the money view. We suggest another interpretation and compare their contributions on financial crises more closely. This comparison makes all the more sense as the two authors were engaged in a discussion that the literature has not studied in depth, but that forms the Ariadne's thread of our investigation. We show that the difference did not so much concern the distinction between rationality and irrationality hypothesis, or between policy and market failure, as the distinction between exogeneity and endogeneity of financial crises. Bernanke rested on the assumption of any kind of exogenous shocks and studied their effects on credit intermediation, whereas Kindleberger analysed credit intermediation throughout the financial cycle and pointed out the causes of financial crises as the culmination of the endogenous process. [ABSTRACT FROM AUTHOR]

The article focuses on advocating for the incorporation of market-based information, particularly stock prices and economic equity ratios derived from them, into the supervision and regulation of banks. It argues that traditional regulatory frameworks, such as CAMELS ratings, are limited in assessing banks performance and stability, and highlights the importance of using market signals to identify early warning signs of financial distress and prompt timely regulatory interventions.

How to apply Internet technology to the financial field has become a pertinent question in the academic circle. To solve the financing difficulties of small, medium and micro enterprises, this study conducts an in-depth exploration into the Internet Finance financing model from three perspectives: the Internet Finance financing model under the background of big data, the functional deconstruction of Internet financial banks, and the characteristics of Internet financial financing intermediaries. Based on the theory of financial intermediaries, an Internet finance model supported by financing functions is proposed. This model puts forward a major deconstruction of the traditional financial intermediary function, with high financing flexibility, and is of great significance to solving the financing difficulties of small, medium and micro enterprises. This research takes X Film and Television Company as the experimental object and carries on the empirical analysis. The experimental results indicate that after three rounds of Internet financing, the asset level of X Film and Television Company has significantly improved. The experimental results show that the asset level of X Film and Television Company increases increased significantly after three times of Internet financing. The growth rate of total assets is close to 150%, and the growth rate of current assets is close to 160%. The three Internet financing schemes provided by X Film and Television Company have saved time and financing costs and have verified the wide applicability of this method in micro, small and medium-sized enterprises. [ABSTRACT FROM AUTHOR]

Using a unique nationwide mortgage servicing dataset, this paper investigates the underreporting of second liens in portfolio mortgages and compares underreporting in portfolio versus privately securitized mortgages. Portfolio loans have more than 40% of the second liens underreported. Low documentation securitized loans have a 47% (in relative terms) lower misreporting rate than observably similar portfolio loans. The portfolio setting allows us to provide strong evidence that misreporting happens in the early stages of intermediation by lenders. The decreased occurrence of misreporting in sold loans subjected to more rigorous screening indicates the effectiveness of MBS issuers' screening, though its overall effect remains limited. Further, we show that the lender‐MBS issuer affiliation also plays a role in misreporting. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the impact of board characteristics on debt choice. Design/methodology/approach: The sample comprises of unique nonfinancial firms listed in the FTSE 350 over the period 2011–2018. This study uses Tobit and OLS regressions to check the impact of board characteristics on debt choice. The results are robust to the battery of robust checks. Findings: This study finds that board size and board independence are positively associated with public debt. However, CEO duality and board meetings frequency are inversely associated with public debt. Overall, the findings are consistent with the "financial intermediation theory" that the firms with weak governance rely on bank financing, and firms with better corporate governance go for public debt. Research limitations/implications: This study offers significant insights for investors and policymakers. Originality/value: This study offers new insights regarding the role of board characteristics in firms' debt choice by showing the significant impact of board characteristics on debt choice. The findings indicate that the board's efficient internal monitoring may substitute external monitoring by the bank. [ABSTRACT FROM AUTHOR]

The introduction of treasury single account (TSA) in Nigeria is supposed to boost government revenue and more importantly, reduce the funds available to the deposit money banks (DMBs). Consequently, the policy is capable of affecting the stability of the DMBs. Therefore, this paper analysed the difference between the adoption of TSA and the stability of Nigerian DMBs using data obtained from the annual reports and accounts of the nine (9) selected listed DMBs. The stability of DMBs was proxied with profitability (ROA), capital adequacy ratio (CAR), liquidity ratio (LDR), non-performing loan ratio (NPLR), asset growth rate, (AGR), deposit growth rate (DGR) while the adoption of TSA was based on the pre- and post-adoption periods of the policy. The study employed a paired-sample ttest to analyse the formulated hypotheses. The main findings are that there is a significant variance between pre- and post-TSA implementation on CAR, NPLR, LDR, ROA and DGR of Nigerian DMBs. NPLR [t-cal = 10.544; p <0.05], CAR [t-cal = 17.657; p <0.05], LDR [t-cal = 9.308; p <0.05], ROA [t-cal = 10.493; p <0.05], AGR [t-cal = 11.224; p <0.05] and DGR [t-cal = 15.232; p <0.05]. It is therefore recommended that banks should uphold the core financial intermediation role of deposit mobilisation and its allocation to remain liquid and profitable as well as to be able to maximise the wealth of their shareholders. [ABSTRACT FROM AUTHOR]

The main aim of the paper is to investigate the effect of macroeconomic stability on economic growth in North Macedonia by applying ARDL econometric model and by using quarterly data for the period from the first quarter of 2007 to the fourth quarter of 2022. We divide the concept of macroeconomic stability into four sub-concepts - output stability, price stability, fiscal stability and financial stability - and find suitable proxies for each of them. In addition, we add a few growth drivers as control variables. The estimated results indicate that higher GDP volatility has a negative effect on economic growth at one level, but weaker and positive effects at one lag; inflation volatility and budget balance volatility have no effect on GDP growth; and capital adequacy ratio negatively impacts GDP growth. Furthermore, we find that the levels of financial intermediation and indebtedness negatively impact the growth of the Macedonian economy. [ABSTRACT FROM AUTHOR]

This paper documents that, in response to the COVID‐19 pandemic, analysts increase their research activity and significantly revise their forecasts when compared to the pre‐pandemic period. Uncertainty‐adjusted forecast errors are either comparable or smaller during the pandemic compared to the pre‐pandemic period. Investor attention and price reactions to analyst forecast revisions are higher during the pandemic and the effect is stronger in periods where investors actively search for information about firms. During the pandemic, investors value analyst price discovery role more than their role in interpreting public information. Jointly, the results suggest that analysts play an important information intermediation role during the COVID‐19 pandemic. [ABSTRACT FROM AUTHOR]

Borrowers obtain liquidity by issuing securities backed by the current period payoff and resale price of a long-lived collateral asset, and they are privately informed about the payoff distribution. Asset price can be self-fulfilling: a higher asset price lowers adverse selection and allows borrowers to raise greater funding, which makes the asset more valuable, leading to multiple equilibria. Optimal security design eliminates multiple equilibria, improves welfare, and can be implemented as a repo contract. Persistent adverse selection lowers debt funding, generates volatility in asset prices, and exacerbates credit crunches. The theory demonstrates the role of asset-backed securities on stability of market-based financial systems. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the relationship between financial inclusion and financial system development in emerging and frontier markets. Design/methodology/approach: Using data across 35 countries over 19 years (2004–2022), the improved GMM estimation technique reveals that financial inclusion significantly contributes to the development of financial systems. Findings: The study uses a segmented approach, dividing financial development indices into subindices: financial depth, financial access and financial efficiency. Indicators of bank financial inclusion show a positive and highly significant relationship with bank depth and access but a negative relationship with bank efficiency. Similarly, indicators of the debt market and stock market financial inclusion demonstrate positive relationships with market depth and access but negative relationships with debt and stock market efficiency. The study further examines composite indexes of financial inclusion for bank, debt and stock market segments, finding strong and highly significant relationships with market development. These results underscore the importance of promoting financial inclusion across all segments of the financial sector to achieve an inclusive financial system. Practical implications: The implications of this research highlight the need for policymakers and practitioners to implement policies and regulations that enhance financial inclusion and foster the development of robust financial systems. By extending access to mainstream financial instruments and services, financial institutions can stimulate financial intermediation and support, thereby accelerating the development of the banking, debt and stock markets. Originality/value: The study is robust to the use of several indicators of financial inclusion and financial development, and it forms part of the early studies that examine the close relationship between the two variables. [ABSTRACT FROM AUTHOR]

Small and medium-sized enterprises (SMEs) are a very important factor in solving most problems in national economies, so it can be safely said that they are stabilizers in the short term, and that they are generators for the development and success of the economy in the long term. Many analyzes and studies exist in order to provide recommendations that will be implemented by national authorities because SMEs are key in the overall operation of national economies as drivers of employment and participants in the creation of GDP and as such become a significant segment in modern economic flows. The main challenge of SMEs is access to finance, as well as determining the reasons for SME's limited access to finance. There is a great concern based on these challenges for SMEs due to the fact that such limited finances can limit the very operation and growth of companies, and consequently, create an obstacle in economic growth, so the concern is equal for businesses and for policy makers. The financial system in North Macedonia is solid, but still underdeveloped. Banks have the dominant participation in the system and have a high participation in the total assets of the financial sector, as well as in financial intermediation. Bank loans are the dominant form of financing for SMEs. Lending to the private sector as a percentage of GDP is over 50%, which is relatively low compared to developed EU countries. Through a survey on bank financing of SMEs, the main factor in the financing process was captured, as well as identifying institutional and political constraints. The findings indicate that banks consider the SME loan market large, competitive, underprotected and with positive aspirations for the future. From their side, a key premise is that the SME sector should be profitable, with good prospects, taking into account macroeconomic factors, the legislative environment and other factors that are specific to banks. All banks expect that SME is a segment that has aspiration for continuous growth and all banks agree that the existence of a credit bureau or credit register of the Central Bank od North Macedonia will facilitate the process of lending to SMEs in terms of a more transparent data structure, timelu updating and improved display of credit exposure. Bank financing has aspirations to continue to be a key source of financing for SMEs, but it is still necessary to expand the financial instruments for SMEs in order to meet them and help them in maintain economic development at a satisfactory level in investment and innovation, in employment, especially in the part of innovative and fast-growing enterprises with a high risk profile in terms of yield. Despite the progress that has been visible in the past years, small and medium-sized enterprises continue to perceive access to finance as a challenge for theis operations. However, there is a necessity in the implementation of further activities to support the SME sector in terms of strengthening the institutional, regularoty and operational environment in which it operates. Overall, the SME sector still has room to be supported and encouraged to increase their overall contribution to the economy. [ABSTRACT FROM AUTHOR]

The paper studies the productivity change of the commercial banks in the CEE countries over the post-crisis period 2013–2018. The productivity change is measured by the Malmquist Productivity Index and its sub-components, applying two approaches—the asset-oriented and profit-oriented intermediation approaches. The analysis uses data from a balanced panel of 181 commercial banks in 11 CEE countries. We find that commercial banks' productivity, measured with the asset-oriented intermediation approach, decreased in most of the CEE countries over 2013–2018, with a decline ranging, on average, from 1% to 6.9%, driven mainly by a decline in technical efficiency. Nevertheless, estimates using the profit-intermediation approach point to productivity growth in commercial banks in all CEE countries, ranging, on average, from 0.5% to 6.3%. The empirical findings imply the need for the CEE commercial banks to further digital transformation and cost rationalization. [ABSTRACT FROM AUTHOR]

What is the long-term impact of negative interest rates on bank lending? To answer this question, we construct a unique summary measure of negative rate exposure by individual banks based on exclusive survey data and banks' balance sheets and couple it with the credit register of Spain and firms' balance sheets to identify this impact on the supply of credit to firms. We find that only when deposit rates reached the zero lower bound did affected banks (relative to non-affected banks) decrease their supply, especially when undercapitalized and lending to risky firms. The adverse effects of the negative rates on banks' intermediation capacity only took place after a protracted period of time. [ABSTRACT FROM AUTHOR]

I study the impact of intermediation friction on asset bubbles in an infinite horizon model where rational asset bubbles serve as store of value and collateral. Intermediation friction is characterized from two aspects, the interest rate spread and the loan-to-deposit ratio, which affect the existence of bubbles, its steady-state size and its dynamics in different ways. The impact of intermediation friction depends on the role of asset bubbles in the economy. When asset bubbles only serve as store of value (collateral), higher intermediation friction not only raises the value of bubble assets and social welfare in the steady state, but also amplifies (dampens) the fluctuation after the bubble collapses, undermining (improving) the stability of the economy. When both roles are involved, the impact of intermediation friction depends on the relative importance of the two roles. An optimal level of intermediation friction can be derived when the relative importance is within some intermediate range. The roles of asset bubbles also matter for the impact of monetary policies. [ABSTRACT FROM AUTHOR]

The disparity between the interest rates on loans and deposits is a widely used indicator of how expensive financial intermediation is for a community. The nations which reflect lower intermediation costs have higher levels of banking penetration and financial development (Gupta et al., 2021). This research examines the impact of credit diversification strategy on cost of intermediation of the Indian commercial banks. Additionally, our study shows the moderating role of bank ownership in this nexus. The static and dynamic estimation of panel data of the banks during the period 2014 to 2020 are carried out to analyse this relationship. Our baseline results refute the findings of Bustaman et al. (2016) and Huynh and Dang (2021) and indicate that the more diversified a bank's credit portfolio, the higher its cost of intermediation. Besides, the results reflect the effect of credit diversification in inflating the cost of intermediation is less severe for the banks with public ownership. Thus, this research emphasizes while promoting a diversified strategy, regulators and bank managers should carefully evaluate the positive impact of credit diversification on banks' cost of intermediation with a caution that the positive impact is more severe for private sector banks. [ABSTRACT FROM AUTHOR]

In the third paper, Dong et al. analyze the efficiency of government response policies and fiscal policies on green recovery by observing the variation of carbon allowance prices in the European Union (EU) emission trading system (EU ETS). In the second paper, Zhao et al. explore the effective impacts of government subsidies and tax rebate policies on renewable energy firms' investment efficiency. The concept of a "green economic recovery" is rooted in a logical theoretical framework, focusing on economic development strategies that minimize detrimental environmental impacts. [Extracted from the article]

During the past decades, industrial capitalism has been transformed into something which has been dubbed 'Casino Capitalism', 'Turbo Capitalism' or 'Money Manager Capitalism' by different authors: financial accumulation has outpaced real accumulation. This process of 'financialisation' has been discussed quite intensively in the literature with respect to its historical determinants and its macroeconomic effects, yet it has not been studied thoroughly whether the shift from the production and allocation of commodities and services towards the origination and distribution of loans and assets as the main activity of non-financial companies challenges our theoretical principles and, therefore, demands a new macroeconomic approach. The objective of this paper is to argue in a preliminary way that financialisation is not merely to be understood as the relative growth of the financial sector based on a deepening of financial intermediation but as a structural transformation of the core business of non-financial firms. This is based on an extended post-Keynesian theory of monetary production and an application of Minskian short- and long-term instability cycles. [ABSTRACT FROM AUTHOR]

This paper investigates which intermediary practices among European aerospace clusters support their diverse membership. Using a configurational approach, we find nine successful sets of practices spanning cluster members with varying levels of internal resources. We unpack important trade-offs, with no single approach to intermediation being ideal in every context. However, the presence of mutual trust is necessary, hinting that its importance in brokered networks has been understated by past research. Furthermore, equifinality exists even for similar types of members, suggesting the need for future research to be attentive to the existence of multiple viable approaches to cluster intermediation. [ABSTRACT FROM AUTHOR]

Peer-to-peer (P2P) lending enables individuals and small companies to finance and invest without the intermediation of financial institutions. However, this business model is also associated with high delinquency risk and a lack of risk monitoring and control capabilities. This paper explores the potential of the Internet of Things (IoT), blockchain, smart contract technologies, and the Continuous Risk Monitoring and Assessment (CRMA) framework to re-engineer risk monitoring and control for P2P lending. We conducted a case study of a large Chinese P2P lending company to identify problems in its current risk monitoring and control processes and to design an IoT-smart contract CRMA system to continuously monitor and respond to delinquency risk via real-time data collection, automatic loan settlement, and in-time risk disclosure. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41; M49. [ABSTRACT FROM AUTHOR]

This article aims discuss banking reforms of the 1990s, which consolidated the Chinese state and the architecture of its financial system, establishing a circuit based on the finance-investment-saving-funding logic. This circuit provides an increase in the volume of financing, conditioning the growth of the industry and the formation of large state business conglomerates, including the financial sector. The financial system, through voluminous financial resources, mainly via credit, directed the level of expenditure of agents and the real variables of the economy such as product and employment. The result of this process is a clear movement of interest from this market in the search for a share of the large profit presented. In this way, it managed to overcome its development delay, demonstrating that it is possible to accelerate and improve the quality of economic growth through the development and centralization of financial intermediation. [ABSTRACT FROM AUTHOR]

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

American finance has grown immensely profitable in the past four decades, but the precise reasons for this tremendous and sustained growth have not been sufficiently understood. The primary purpose of this paper is to explain the immense profitability of US finance by systematically examining how its sources of profit and types of profit-generating activities have changed since the onset of financialisation in the 1980s. Conceptually, the paper develops a typology of financial profit-generating activities, drawing a separation between credit intermediation, market mediation, and rentierism. Empirically, it examines the changing accumulation dynamics witnessed in US finance since the 1960s using the IRS Statistics of Income, BEA National Income and Product Accounts, and Federal Reserve Flow of Funds data. The paper identifies primary income sources for the sector as a whole and its most profitable subsectors, finding strong evidence that financial profit-making has shifted from lending to ownership and management of capital. It is argued that this transformation has fundamentally changed finance's relationship with the real economy. [ABSTRACT FROM AUTHOR]

Purpose: The impact of financial inclusion on economic growth is a topic that is generating widespread interest among researchers and practitioners. In this paper, the authors review the existing literature to highlight the state of research in the literature and identify new opportunities for innovative research. Design/methodology/approach: The authors used a thematic literature review methodology which involves dividing the review along relevant themes. Findings: The authors find that significant research on the topic emerged in the post-2016 years. Most of the existing studies are from developing countries and from the Asian and African regions. Existing studies have not utilized relevant theories in explaining the impact of financial inclusion on economic growth. Most studies report a positive impact of financial inclusion on economic growth while very few studies show a negative impact. The most common channel through which financial inclusion affects economic growth is through greater access to financial products and services offered by financial institutions that increases financial intermediation and translates to positive economic growth. The common empirical methodology used in the literature are causality tests, cointegration and regression methods. Multiple proxies of financial inclusion and economic growth were used in the literature which partly explains the conflicting result among existing studies. The review paper concludes by identifying some directions for future research. Originality/value: This paper presents the first rigorous thematic review of the existing literature on the impact of financial inclusion on economic growth. It highlights the main approach that researchers have taken on this topic and identifies some important research areas for future investigation. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2022-0339. [ABSTRACT FROM AUTHOR]

Using a unique hand-collected sample, we study market reactions to mining developers announcing project finance loans. We document a significant three-day abnormal return of 2.6% and a 3.4% reduction in abnormal bid-ask spread around loan approvals, consistent with information transfer from private lenders to equity holders and reduction in asymmetric information. Cross-sectional analysis reveals a negative association between announcement return and hedging requirements specified in loan contracts, which becomes insignificant after controlling for treatment effects of hedging. Specialist banks do not charge lower rates but are more likely to impose hedging requirements, consistent with rent extraction due to bargaining power. (JEL G30, G32) [ABSTRACT FROM AUTHOR]

The article discusses the prospects and challenges for regulators of the crypto ecosystem. Topics include the interest of market operators, authorities and academics for crypto assets that has become apparent in 2009, elements that are defining the components of this ecosystem, and the complex structure of crypto-asset ecosystems and their significant vulnerabilities.

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

This paper develops a New Keynesian model featuring financial intermediation, short- and long-term bonds, credit shocks, and scope for unconventional monetary policy. The log-linearized model reduces to four equations: Phillips and IS curves, as well as policy rules for the short-term interest rate and the central bank's long-bond portfolio (QE). Credit shocks and QE appear in both the IS and Phillips curves. In equilibrium, optimal monetary policy entails adjusting the short-term interest rate to offset natural rate shocks but using QE to offset credit market disruptions. Use of QE significantly mitigates the costs of a binding zero lower bound. [ABSTRACT FROM AUTHOR]

The aim of this research is to investigate the role of credit subsidies in overcoming financial intermediation challenges. The study seeks to evaluate the current financial intermediation landscape in both countries with respect to climate change mitigation, and to determine the effectiveness of credit subsidies as a policy instrument for promoting mitigation efforts. We apply the unit root test and the error correction modeling technique in examining data from 2012 to 2018 originating from China and Japan, respectively. After that, an explanation for the data is constructed utilizing a regression method. Among the most important findings are the contributions of credit subsidies to eliminating fiscal imbalances, the positive effects they have on global commerce, and the relevance of credit subsidies in reducing greenhouse gas emissions in China and Japan. A 28% and 37% reduction in climate change, respectively, can be achieved by implementing credit subsidy programs for local residents in China and Japan. To provide households with the finance they require to tackle climate change, the financial systems of the industrialized world, particularly those in China and Japan, need to be upgraded. [ABSTRACT FROM AUTHOR]

We integrate bank and bond financing into a two-sector neoclassical growth model and identify an automatic stabilization effect due to endogenous bank leverage adjustment. We show that although bank leverage amplifies shocks, the increase of leverage due to a decline in bank equity partially offsets the post crisis decline of bank lending and accelerates economic recovery by reducing the persistence of the bank lending channel. In this case, endogenous leverage adjustment is an automatic stabilizer. Regulatory state-independent capital limits and wage rigidities impair the re-allocation of capital between sectors and weaken this automatic stabilization. A quantitative analysis of the US during the Great Recession shows that the magnitude of automatic stabilization can be significant and informs about potentially high costs of strict capital regulation or wage rigidities during banking crises. [ABSTRACT FROM AUTHOR]

This study examines the determinants of capital adequacy and voluntary capital buffers among microfinance institutions (MFIs). We apply the two-stage least squares (2SLS) with instrumental variables to account for endogeneity. Using quarterly panel data of 439 MFIs in Ghana covering the period 2015–2018, the study found that credit risk, income diversification, size, profitability, lending channel, and equity-to-asset ratio significantly affect capital adequacy. Also, the factors that drive voluntary capital buffers are income diversification, size and equity-to-asset ratio, but size and economic growth are insignificant when the upper limits of Basel III requirements are applied. Generally, the results are insignificant among non-deposit-taking (i.e. Tier 3 like Financial NGOs) MFIs. The findings show that non-performing loans negatively affect capital adequacy. Income diversification increases capital adequacy, especially among deposit-taking MFIs which have the regulatory liberty to engage in additional financial intermediation activities. Size has an inverted U-shape nexus with capital adequacy and there is evidence to suggest that for non-deposit-taking MFIs, size may not matter. Profitability increases capital adequacy while equity-to-asset ratio decreases capital adequacy, especially among deposit-taking MFIs. Additionally, lending channels negatively affect capital adequacy, especially among deposit-taking MFIs. Economic growth reduces capital adequacy but results are insignificant when we control for quarter fixed-effects. These results throw light on the application of the capital buffer theory in the context of MFIs which provides useful insights for practitioners, regulators, policymakers and academia. [ABSTRACT FROM AUTHOR]

Access to finance is one of the factors influencing economic activities. The current study aimed at determining the role of finance in the South African agro-industrialization relationship. To achieve the study objective, bounds testing, the autoregressive distributed lag (ARDL) and error correction approaches were applied on quarterly time series data spanning between the first quarter of 1994 and the last quarter of 2021. Additionally, an interaction term was included to assist the aforementioned models in determining linkage between agriculture and industrial outputs through farmer's access to finance. Findings revealed that agricultural output and finance are valid forecasters of the industrialization behaviour in the long-run. Access to finance leads to industrial growth while agricultural output growth causes a decline in the industrialization. Nonetheless, aggregate growth of both financial access and agricultural output are associated with industrial output in the short-run. Grounded of the study findings, this study concludes that financial access influence both agriculture and industrial output. Consequently, improving famers' financial access through financial facilities, financial intermediaries and government subsidies could be a worthwhile strategy or policy to enhance a country's industrialization. As implication of the study, obtained finding can assist in linking effectiveness of primary, secondary and tertiary economic sectors in South Africa. [ABSTRACT FROM AUTHOR]