Money Banks Research Articles

Wholesale Central Banks Digital Currencies and New Opportunities for Interbank Settlements with the Prospect of Entering International Transactions

A new generation of digital technologies that make it possible to speed up settlements and reduce their cost was born from crypto-currency projects, but the prospects of their economically effective and socially responsible application associate with central bank digital currency. The article discusses the issues of digitalization of central bank money in relation to interbank settlements, including for servicing cross-border payment turnover. So far, this topic has not found a significant response in Russian scientific journals. This publication aims to popularize it by summarizing and analyzing examples extracted from foreign experiments. The advantages of digitalization are compared with the capabilities of conventional payment systems. Descriptions and comparisons of the architectures of the new generation payment system are given, in the range of which it is possible to choose compromises between benefits, risks and costs in the search for the optimal solution. In conclusion, the prospects for the transition to an experiment with digitalization of wholesale payments in Russia are assessed following the upcoming introduction of the “retail” digital ruble

Privacy in payments: What a CBDC can do better than commercial bank money

Privacy in payments: What a CBDC can do better than commercial bank money

Analysis of Optimizing the Allocation of Chinese Family Pension Financial Assets

In this era of national aging, social pension insurance can no longer meet the accelerated aging rate. According to statistics, by the end of 2021, the number of elderly people aged 60 and above in China had reached 267 million, accounting for 18 9% of the total population. In 2021, the number of elderly people aged 60 and above in China had reached 267 million, accounting for 18.9% of the total population. It is expected that by 2035, the elderly population will reach 300 million, accounting for 20% of the total population. In 2035, the elderly population will reach 300 million, accounting for 20% of the national population. Due to outdated concepts, the older generation believes that storing money in banks is not a good idea. In order to solve this problem, the country has promulgated the "Personal Pension Implementation Law", which is a type of pension insurance that individuals bear. Due to outdated concepts, the older generation believes that storing money in banks through real estate is safe and lacks correct financial management views. Therefore, the development of pension finance is difficult to implement, especially the understanding of that financial knowledge is needed for the allocation of pension products. To solve the development problem of elderly care finance, it is necessary to first improve the financial concepts of the old so that they can understand the correct financial concepts. Therefore, we will explore the understanding of financial concepts and elderly care allocation among the elderly in China and demonstrate it through data. Therefore, we will explore the understanding of financial concepts and elderly care allocation among the elderly in China and demonstrate it through data. Then, we will combine the theories of some financial scholars to conduct research, hoping to discover the problems of elderly care asset allocation in China through research and propose some of our own opinions.

Legal regulation of the monetary system of the Russian Federation in the digital economy: financial and legal problems

The article discusses current problems of digitalization of the monetary system of the Russian Federation. A conclusion is made about the place and content of the sub-growth of the rights of the monetary system in the structure of financial law. It is argued that digitalization does not change the essence of financial relations, the essence of money as a financial and legal category, it only gives them an electronic form. The author’s assessments of the legal nature and qualifying features of new financial payment instruments that are a response to the challenges of the digital economy are given: electronic money, digital currencies, digital ruble. It is argued that they are subtypes of non-cash money circulation along with classic bank money. Proposals for improving the current legislation on the national payment system are substantiated in terms of systemic legal regulation of all types of digital forms of monetary circulation.

The Digital Pound: A Plan Designed to Fail?

The UK authorities have consulted on the issue of the ‘digital pound’, a retail central bank digital currency (CBDC) for general use in payments by UK households and firms. The stated ambition is a new form of central bank money, used alongside Bank of England notes and commercial bank deposits. There are inherent contradictions in these plans. Promoting adoption requires that users should be able to freely and conveniently receive and send digital pound payments and that account services can compete effectively with commercial bank transaction accounts. Containing the risks of retail CBDC to financial stability requires doing the opposite: limiting the use of the digital pound and handicapping account providers in their competition with commercial banks. To resolve this contradiction, ambition should be scaled back, focusing on specific and narrow use cases that cannot be easily addressed using commercial bank transaction accounts.

A simple model of a central bank digital currency

We develop a general equilibrium model that highlights the trade-offs between physical and digital forms of retail central bank money. The key differences between cash and central bank digital currency (CBDC) include transaction efficiency, possibilities for tax evasion, and, potentially, nominal rates of return. We establish conditions under which cash and CBDC can co-exist and show how government policies can influence relative holdings of cash, CBDC, and other assets. We illustrate how a CBDC can facilitate negative nominal interest rates and helicopter drops, and also how a CBDC can be structured to prevent capital flight from other assets.

The impact of bank money on stock market integration: evidence from the Eurozone

This paper explores the impact of monetary policy on the integration of the equity markets of the five largest economies of the Eurozone. We show that a rise in leverage and accommodating monetary policies significantly affects the probability of simultaneous stock market crashes. Moreover, we find that an increasing loan-to-base ratio divergence has a destabilizing effect on equity markets. Our findings are instrumental for international investors, who might operate under the assumption that Eurozone stock markets exhibit stable correlations during non-crisis periods, bolstered by the prevailing monetary regime. We suggest implementing a probability threshold as a macroprudential tool to manage latent correlations and ensure effective risk management.

The digital euro: a materialization of (in)security

The European Central Bank (ECB) has entered the preparation phase for the potential issuance of a digital euro. The digital euro under consideration represents a retail central bank digital currency (CBDC), a digital representation of central bank money that is intended for use by the general public. This article foregrounds the digital euro as an infrastructure that furthers European security ambitions. It argues that the development of the digital euro is a materialization of European (in)security rationales that aim to secure pan-European financial transactions amid growing geopolitical tensions. It focuses on the development of the technology and analyses how central bankers’ scenarios of the future manifest in the anticipated design and prototypes. While the provision of a financial infrastructure is the most decisive security-related implication of the digital euro, the introduction of a new form of public money is the decisive financial feature with potentially wide-ranging implications for banks. Although the ECB seeks to balance the interests of banks and other financial actors in the development of the digital euro, its plans are still met with criticism. Finally, the article argues that the ECB exerts itself more explicitly than before as a geopolitical actor in its own regard.

SHAPE OF CENTRAL BANK MONEY AIMS FOR DIGITAL PROGRAMMABLE COINS: FROM METAL AND PAPER TO A FULLY CONTROLLED DIGIT (DISPLACEMENT HYPOTHESIS)

SHAPE OF CENTRAL BANK MONEY AIMS FOR DIGITAL PROGRAMMABLE COINS: FROM METAL AND PAPER TO A FULLY CONTROLLED DIGIT (DISPLACEMENT HYPOTHESIS)

Bifurcations and complex dynamics in a banking duopoly model with macroprudential policy

We consider a banking duopoly model with a macroprudential policy in Indonesia called loan-to-deposit ratio-based reserve requirement (LDR-RR). The objective of the policy is to control the banking loans growth using a LDR-based penalty scheme that requires banks to save more money in the central bank to maintain their liquidity ratio. Following recent studies on banking models, we analyze a piecewise discrete-time model with two banks. We assume that the dynamics of the deposits follows the discrete logistic growth. Moreover, our model has two borders, hence we examine the resulting border-collision bifurcations. From the local stability analysis we find that, according to the parameter values, only the border-collision bifurcation or the flip bifurcation occurs. Finally, we perform several numerical simulations to confirm the stability analysis’ results. Our discrete dynamical system offers various possibilities of development for future research perspectives.

Interest Rate Sensitivity of Depositors in Non-Financial Banks: A Case of an emerging Economy

This study uses 62 years of data, from 1960 to 2021, including variables like deposits, interest rates, GDP, and inflation, to investigate the link between interest rates and deposit behavior in non-Islamic banks in Pakistan. The study finds that interest rates have a big influence on deposit behavior using time series analytic techniques as unit root testing, cointegration analysis, and Vector Error Correction Model (VECM). More specifically, people's decisions to deposit money in non-Islamic banks are observed to be influenced by interest rate variations. The results highlight the importance of interest rate changes in influencing deposit behavior, showing how people choose which non-Islamic institutions to deposit money with. These findings have significance for financial institutions, policymakers, and economists in general. They provide important new information about the ways in which monetary policy choices affect deposit mobilization and liquidity conditions in the banking industry. The report also proposes directions for further investigation, including the possible examination of differences in deposit behavior between demographic groupings or geographical areas. To further help understand the dynamics at work, it also suggests examining how interest rates affect deposits in various sample configurations. This research advances theoretical frameworks in the field by shedding light on the complex interactions between interest rates and deposit behavior. It also offers stakeholders practical guidance on how to deal with the effects of interest rate dynamics on deposit mobilization and banking sector liquidity.

Central Bank Digital Currency: Driving the Shift Towards a Global Cashless Society

The evolution of money from traditional physical cash to Digital Currency marks a significant paradigm shift in the global financial landscape. This conceptual paper provides an overview of the emerging form of central bank money known as Central Bank Digital Currency (CBDC) and its progression amidst the digitalization era. It discusses the transition from cash to CBDC, exploring global advancements and initiatives. Drawing upon existing literature, it comprehensively addresses CBDC's forms, features, types, motivations, and implications. Specifically, it emphasizes the practical application of CBDC through pilot projects in India, highlighting the interoperability of Unified Payments Interface (UPI) with CBDC, a significant step towards adoption by the Reserve Bank of India (RBI). This study contributes to existing literature by highlighting the necessity for further research to understand the complexities and implications of CBDC adoption, crucial for its widespread acceptance. It underscores the imperative need for additional research and practical exploration to fully understand the ramifications of CBDC adoption, particularly within the Indian context and beyond.

Analisis Faktor-faktor yang Mempengaruhi Minat Masyarakat Menabung di Bank Syariah Indonesia

Islamic banking is an Islamic economic phenomenon that has become an alternative and increasingly popular with people around the world, including millennials. Not only to accommodate the interests of Muslims, but also to integrate personal interests and community benefits in a balanced form. Islamic banking in Indonesia is currently experiencing rapid development. As a country with the largest Muslim population in the world, Indonesia certainly has a very important role in building the Islamic economy. This can be used as a great opportunity by Bank Syariah Indonesia in optimizing its role to support the country's plan to develop Islamic finance in Indonesia. It can be seen that the number of customers at Bank Syariah Indonesia is still far from expectations when viewed from the large Muslim population in Indonesia. This indicates that there are still many Muslim residents in Indonesia who still do not use the services of Sharia Banks in Indonesia. This indicates that there are still many Muslim residents in Indonesia who still do not use the services of Sharia Banks in Indonesia. This can arise by several factors that are the reason why the Indonesian Muslim population is still reluctant to use the services of Bank Syariah Indonesia. The large gap between the Muslim population in Indonesia and the number of customers of Bank Syariah Indonesia is one of the attractions for researchers to conduct an analysis of the Factors Influencing Public Interest in Saving at Bank Syariah Indonesia (BSI). Interest can be interpreted as an interest or tendency to choose what is desired. One example is the interest and tendency towards interest in saving, for example a religiously inclined person will choose Islamic banks over conventional banks because based on Islamic religious law which prohibits his people from transacting ribawi (interest). According to (crow & crow 1998) states that there are six that affect interest, namely: income factors, job stability factors, financial goal factors, risk avoidance factors, knowledge factors, social and cultural environmental factors. While the author in conducting this study used descriptive qualitative methods with data collection techniques used was to conduct structured interviews to the community with the help of research instruments in the form of mobile phone cameras as photo documentation and recordings during interviews with the people of Bandung City which at this time became a source of research information. The results obtained from research conducted by the author to the people of Bandung city resulted in income, risk avoidance / security factors and social and cultural environmental factors are factors for people interested in saving their money in Indonesian Islamic banks (BSI).
 Keywords: Bank Syariah Indonesia, community, Interest.

A Study on the Relationship Between Government Funding Supply and Central Bank Money Supply

With the development of the economy, the relationship between government funding supply and central bank money supply has received widespread attention. This paper first analyzes the influencing factors between government funding supply and central bank money supply, then explains the data processing method, and finally verifies the feasibility of this study through experiments. The experimental results show that there is a certain degree of correlation between government funding supply and central bank money supply, and channels such as fiscal expenditure, debt issuance, and bank credit of government funding will affect the changes in central bank.

DDoS attacks detection using different decision tree algorithms

In today's world, the banking sector, government organizations, and various users in the finance and insurance sectors have grown exponentially. In such situations, they become primary targets for attackers. The main focus of these attackers is to disrupt services for legitimate users. Recently, attackers have targeted banks in Ukraine during the Russia- Ukraine war, causing a shortage of money in banks and making it difficult for people to withdraw funds. These types of attacks fall under the category of Distributed Denial of Service (DDoS) attacks. The primary objectives of these DDoS attacks are to gain financial control and damage the reputation of the affected organization or country. The purpose of this paper is to detect DDoS attacks using various Decision Tree Classifiers in Machine Learning algorithms. We utilized the 'caret' package in R, which is well-known for its Classification and Regression Techniques. We split the KDD'99 dataset based on the outcome variable. We employed the 'rpart' method to classify the dataset using CART and C4.5 algorithms. Experimental results indicate that our classification methods achieve a better accuracy rate compared to other decision tree methods.

Impact of External Factors on Customers’ Choice of Deposit Money Banks in Akure, Ondo State

The study investigated the influence of external factors on customers’ choices of Deposit Money Banks in Akure, Ondo State. With the population of 22 deposit money banks in Akure, Ondo State, Nigeria, a survey research design was used. Ten bank clients from each of the 11 deposit money banks in Akure that were chosen (50%) out of the 22 deposit money banks in Akure were taken into consideration using the random sampling technique. Information from respondents was gathered via the primary data source, and the study’s hypotheses were tested using linear regression. The study’s conclusions showed that customers’ choice of bank in Akure is significantly influenced by organizational factors (p=0.28<0.005) and that physical factors and customers’ choice of bank have a positive relationship (p=0.032< 0.005). Furthermore, the results demonstrated that, in Akure, Ondo State, customers’ choice of bank is positively influenced by technological factors (p=0.17< 0.005). The study came to the conclusion that customers’ decisions about depositing Money in money banks in Akure, Ondo State, are influenced by outside factors. The study also concluded that banks should cater to the social needs of their customers in order to draw in more of them and that they should operate with little to no bank interest to influence customers’ choices. According to the study, banks should determine which external factors influence customers’ choice of bank and address them appropriately.

Cash, Accounts, and Central Bank Digital Currencies – a Transatlantic View on the Digitization of Retail Central Bank Money

Cash, Accounts, and Central Bank Digital Currencies – a Transatlantic View on the Digitization of Retail Central Bank Money

Financial industry adoption of distributed ledger technologies: implications for central bank money settlement

Financial industry adoption of distributed ledger technologies: implications for central bank money settlement

Assessing the Resilience of Fintechs to Epidemic Crises from a Monetary Stability Perspective: Evidence from Africa

The paper aims to assess the resilience of fintechs to epidemic crises in Africa. This study is new in that it is one of the few to have examined the impact of fintechs on monetary stability in the African region, and it shows how digital tools have become crucial for regions to better manage their response to the crisis. To do so, we use the Ordinary Least Squares (OLS) technique to investigate the complexity of the relationship between Fintechs and monetary stability during the years 2011, 2014 and 2017. The study confirms that debit card use leads to an increase in inflation and participates in the decline of the interest rate. We also find that the use of the internet during transactions plays a stimulating role in lowering inflation, encouraging currency transactions and reinforcing the increase in interest rates. Finally, we conclude that the stability of money in bank accounts decreases the effect of inflationary pressures but favors exchange rates and interest rates together as a result of the increase in money.

Editorial 30

This volume of Pensamiento Americano has corruption as one of its featured articles. And, although it may seem wrong to say so, there is a need for us citizens to recognize the small corruptions we do on adaily basis. Obviously there are scales of corruption at various levels, but this corruption as a product of fetishistic materialism is part of our social history. Let us not be romantic about pointing out the macro corruption at institutional levels, for example, and avoid doing it by paying the police officer when we are going to withdraw a generous sum of money in Colombian banks. Because of the fear instilled in our minds by the newspapers almost daily, we accept to pay this agent to protect us until we arrive at our destination with that money taken out of the bank, with our lives intact. It is often said that "it is good to give something for the agent", although it is his function to provide us with this security, according to the internal communications of the banks. But... we pay for this agent to protect us and not to report us to the criminals. That, I am sorry to say, is how we are part of the gear of corruption. We can say we are corrupt when we accept the fruit basket from the student who lives in Sabanalarga, and needs to improve his grades - in this case, fruits are the bargaining chip.