Bank Deposits Research Articles

ANALYSIS OF THE INTEGRAL INDEX OF BANK CAPITALIZATION

Adequate capitalization is crucial for ensuring a bank’s financial stability and, by extension, the financial security of the entire country. This importance is especially evident in terms of both the quantity and quality of capital that a bank holds to cushion potential losses. Various indicators and ratios are employed to assess the level of bank capitalization, often subject to regulatory oversight. However, there is currently no standardized methodology for calculating and analyzing this indicator. This article aims to analyze the comprehensive index of bank capitalization levels. The calculation is based on statistical reports from 34 European countries spanning the years 2010 to 2020. The author explores the main direct and indirect factors influencing the level of bank capitalization. Direct indicators include return on equity, capital to assets ratio, and the ratio of regulatory capital to risk-weighted assets. Indirect factors include return on assets, the level of non-performing loans, the number of bank branches, the ratio of expenses to income of banks, and the ratio of bank deposits to GDP.

Internal determinants of bank deposit flows under different market conditions in Ghana

This study analyzes the effect of internal factors of bank performance on deposit flows, considering the changes in the stock market conditions in Ghana. A panel dataset covering 2007 to 2021 of 18 banks in Ghana is applied in a dynamic panel model for the analysis. The results show that the lagged deposit growth exerts an impressive influence of 0.68 percent on the future deposit flows of banks, thus positing a favorable implication for their trading momentum. Also, liquidity was found to have a negative relationship of –0.64 percent with deposit growth. This implies that the holding of excess liquidity diminishes investors’ confidence in a bank’s ability to generate more revenue to enhance the value of their funds, as high liquidity ratios reduce the bank’s capacity to grant more loans for profit. Furthermore, the analysis revealed a positive effect of 1.93 percent by expenditure on deposit growth, which suggests that depositors recognize a rise in operational costs as an indication of a bank’s potential for growth and rapid expansion. Moreover, the analysis found the existence of a negative effect of –0.88 percent by the stock market conditions on deposit growth, which implies that bullish market conditions reduce bank deposits. This verifies that the determinants of deposit flows adapt to the changes in market conditions. Policy strategies should include non-performance metrics such as an increase in the interest paid on customers’ deposits, product promotions, and targeted advertisements to sustain the inflow of depositors’ funds under changing market conditions.

APPLICATION OF BANK DEPOSIT INSURANCE LEGISLATION: MAIN ASPECTS

The article highlights the special relevance of the legal study of the bank deposit insurance system. The authors have identified the main trends in the historical development of the bank deposit insurance system, which are generally of positive importance. The article also analyzes the main problems of legislation and law enforcement practice in the field of bank deposit insurance. The conclusion is formulated that the legitimate interest of depositors should be protected primarily, while the established judicial practice in some cases indicates the opposite. In addition, the legislation on insurance of bank deposits violates the principle of equality of subjects of civil law. This situation leads to a drop in the level of depositors' trust and is an obstacle to the effective implementation of the bank deposit insurance system.

Про зміни щодо порядку призначення виплат для внутрішньо переміщених осіб України

The article analyzes financial support from the state for internally displaced persons. On the basis of the current legislation, the concept of “internally displaced persons” was characterized. It is noted that internally displaced persons are citizens, foreigners, and stateless persons who permanently or temporarily reside in the territory of Ukraine and are forced to carry out internal displacement within the borders of their country either forcibly or of their own free will. It is indicated that precisely because of the military aggression of the Russian Federation against Ukraine, a large number of Ukrainian citizens were forced to migrate to safe places, saving their lives and the lives of their relatives, therefore, since 2022, the number of displaced people has increased, both within Ukraine and abroad. Statistical data on forced displacement by internally displaced persons are indicated. It is noted that the fact of internal displacement is confirmed by a certificate of registration of an internally displaced person. It was established that the state contributes to providing effective support and assistance in overcoming the challenges caused by the war in Ukraine for internally displaced persons. It is indicated that persons who lost their homes or were forced to relocate from places where hostilities are taking place or from temporarily occupied territories are most in need of housing and financial support. It is indicated that internally displaced persons are provided with financial support for accommodation in the amount of UAH 3,000 for persons with disabilities and children and UAH 2,000 for other persons. However, the Government made changes to the legislation on the appointment of payments for internally displaced persons. It is noted that the payment will not be extended for persons staying abroad for more than 30 calendar days in a row; are serving sentences in places of deprivation of liberty; were convicted of a criminal offence; returned to the abandoned place of residence. It is emphasized that state payments will be stopped to those internally displaced persons who: purchased a new vehicle; purchased for more than UAH 100,000 a plot of land, an apartment, a house of other immovable property; have funds in the deposit bank account(s) in the total amount exceeding UAH 100,000, etc. It has been proven that it is very important for internally displaced persons to continue receiving payments.

Financial Literacy Among the Different Economic Classes in India

This study attempts to investigate the degree of financial literacy among the various economic classes in India, and the ways in which this influences the way in which individuals of different ages make investment decisions. Even though they may reside in the same location, each person has different financial demands. The findings show that investors are making investments in order to predict their demands for the future and to make significant returns. The majority of investors do not participate in the stock market; those that do choose to trade as investors as opposed to hedgers or speculators. While most investors are well-versed in bank deposits, insurance, and real estate, very few are conversant with internet trading. If an investor can get a large return, they will accept a significant risk. Because they are unsure of how to choose a reliable adviser, many investors are still not taking use of financial advisor services. According to the research, strong promotional actions must be implemented in order to raise consumer awareness of the new and existing goods and services that are offered on the market.

Diversity and composition of cladoceran egg bank in sediments and macrophyte roots from the littoral zone of tropical lakes

Diversity and composition of cladoceran egg bank in sediments and macrophyte roots from the littoral zone of tropical lakes

Design of a CBDC in a Highly Dollarized Emerging Market Economy: The Case of Cambodia

Cambodia is one of the first two countries that adopted a retail central bank digital currency (CBDC) in October 2020. The design of the CBDC, called the Bakong, is a bit unique. We find a few design flaws that could potentially damage the central bank and then the Cambodian economy as a whole. We show some key statistics from our own survey in 2022 to support our arguments. The Bakong is offered in two currencies, the Khmer Riel (KHR) and the US dollar (USD), as Cambodia has been highly dollarized. We discuss theoretical predictions for the CBDC based on three kinds of substitutes: paper money, bank deposits, and foreign currencies. The third one is specific to the Bakong. Unlike a typical local currency CBDC, the USD Bakong may substitute for the KHR more. Moreover, it has been announced that the retail Bakong is legally not a liability of the central bank, but from the viewpoint of the underlying technology and economics, it is a central bank liability.

Sharia Bank Deposits and Financing: Does Economic Turbulence Matter?

The decline in national economic performance as a result of COVID-19 can cause a reduction in company and community income, which will reduce the availability of third-party funds and financing channeled by Sharia banks. This research aims to examine the determinants of third-party deposits and Sharia bank financing in Indonesia using a sample of ten Sharia banks from 2017-2022 that did not carry out mergers or acquisitions. Testing was also carried out on each type of deposit and financing contract because of the potential for different behavior between types of contracts. Data were analyzed using panel data techniques, where the selected model had a fixed effect. The test results prove that there is a positive reciprocal influence between third-party deposits and Sharia bank financing. Economic turbulence has a significant negative impact on deposits, but it is not significant on financing. This turbulence significantly only reduced profit-sharing deposits but not wadiah deposits. Likewise, this economic condition only has a negative impact on financing with receivables contracts but not on profit-sharing financing. This finding implies the importance of Sharia banks in maintaining adequate availability of third-party funds to support financing growth. The Government and Bank Indonesia are important to maintain economic stability. Furthermore, the Financial Services Authority needs to increase monitoring of banks with low capital because of the potential for moral hazard.

Money Supply, Banking and Economic Growth: A Cross Country Analysis

The primary objective of the research is to understand the interactions between money supply, banking and economic growth for effective policy interventions and business decisions. Based on annual data for the time period (2004-2021), descriptive analysis, correlations, causality tests and panel data regressions are analyzed for a sample from India, Saudi Arabia and UAE to draw conclusions. The results favored the ‘intermediation theory’ and were contrary to the ‘credit creation’ theory of banking. It was observed that the GDP of a country can be efficiently explained by financial soundness, broad money, loans and deposits for a country. Also, that the GDP of a country influences banking loans and deposits but not vice versa. The monetary policy of the sample was questioned by the finding that GDP causes banking loans and banking deposits but not vice versa. This important finding will add to the effectiveness in business decision making.

New Technologies and the Future Governance of Bank Run Risk

ABSTRACT The banking turmoil in March 2023 and the associated public interventions to prevent or reduce the risk of a systemic fallout underscore the fact that despite banking systems being in a much better shape in many countries relative to the position prior to the global financial crisis, some bank run risk remains. In fact, bank run risk may be increasing. As fintech and new technologies transform banking, uninsured deposits may become near-perfectly mobile, making bank runs all but inevitable if the governance of the financial system is not appropriately adapted. In this article we discuss how digitalization and new technologies can affect bank run risk and we look at approaches to adapting governance to containing related systemic vulnerabilities in the banking system. We also briefly consider how central bank digital currencies could fit into future frameworks. We conclude that there is no silver bullet, but that adjusting frameworks will become necessary if bank deposit mobility increases.

Human interventions alter morphodynamics of meandering channels: Insights from decadal to pre-industrial observations in the Yangtze River

Human activities, such as reservoir construction and bank revetment, significantly alter downstream flow and sediment regimes and river channel changes, impacting river ecosystem services. However, our understanding of how intense human activities affect morphodynamics of meandering channels in big river systems remains incomplete due to the lack of high-resolution in-situ data. Here, we use comprehensive data encompassing hydrology and sediment, historical channel maps, and high-resolution river bathymetry to investigate the evolution of meandering bends in the Middle Yangtze River (MYR) across three distinct phases: the natural period (1490–1975), the bank revetment period (1975–2002), and the post-dam period (2003–2018). The study revealed that, in the absence of human intervention, the meandering channels of the MYR naturally experienced inner bank deposition and outer bank erosion, largely governed by curvature-induced secondary flow patterns in flow and sediment transport mode. In 1975–2002, outer-bank revetments reduced erodibility, stabilizing outer banks, while inner banks continued to experience lateral and vertical deposition, causing a narrower and deeper channel hydraulic geometry. Conversely, meandering bends had exhibited an unusual pattern of ‘outer bank deposition and inner bank erosion’ in 2003–2018. Channel morphological changes characterized by channel incision and widening were driven by changes from erodible bank boundaries to solidified bank boundaries, substantial reduction in suspended sediment concentration, and an altered and extended effective flow range (10,000–25,000 m3/s). Our findings highlight that human interventions such as damming and bank revetments can alter the conventional erosion–deposition morphodynamics of meandering bends in large river systems, carrying vital implications for sustainable river management in the Anthropocene.

Imperfect competition in the banking sector and economic instability

We study the impact of competition in the banking sector on the emergence of endogenous cycles driven by self-fulling volatile expectations. We consider an OLG model with two sectors and two household types: workers, who consume and work when young and save through bank deposits; and entrepreneurs, who seek bank loans to finance current consumption and to invest in a productive technology that transforms the consumption good into capital. When old, entrepreneurs rent this capital to firms, who produce the consumption good using capital and labor. All markets are perfectly competitive, except the loans market where banks compete à la Cournot under free entry and exit.In the absence of externalities in the capital producing technology, more competition in the banking sector promotes the emergence of local indeterminacy and sunspots fluctuations. In contrast, under constant social returns to scale in the capital producing technology, bank market power alone triggers the emergence of local indeterminacy. With increasing social returns to scale, both market power and externalities facilitate the emergence of local indeterminacy. Additionally, when banks have market power, steady state multiplicity may emerge, opening the way to global indeterminacy and fluctuations.

Financial outreach, total factor productivity and environmental sustainability in middle-income countries

We present evidence that technological advancement can attenuate the harmful effect of financial outreach on environmental sustainability among 58 Middle-Income countries for the period between 2004 and 2021 inclusively. We reached the conclusion after employing the two-step System General Method of Moment Estimation technique to deal with endogeneity due reverse causality. The findings indicate that factors like bank branches, ATMs, credit to the private sector, credit bureaus, and bank depositors have a negative influence on environmental sustainability. The study also highlights a favourable relationship between TFP and environmental sustainability. In the end, we found that TFP plays a crucial role in offsetting the adverse effects of financial outreach on the environmental sustainability. Based on the results, it is recommended that MICs assess their financial outreach activities to prevent compromising sustainability goals. Furthermore, promoting technological advancement is essential in achieving sustainability and mitigating the negative impacts of financial outreach on environmental sustainability.

Intellectual capital and asset quality: A nonlinear investigation in the Turkish Banking sector

This study aims to investigate the intricate relationship between intellectual capital and asset quality within the context of the Turkish banking sector to determine the optimal level of intellectual capital investment that can enhance the asset quality of deposit banks. The study relies on panel data regression analysis to explore this complex relationship, and its dataset encompasses 22 deposit banks over 17 years, from 2005 to 2021. The study provides compelling evidence of a nonlinear relationship between intellectual capital and asset quality. It pinpoints an optimal threshold for intellectual capital investments, beyond which further increases can erode asset quality. Furthermore, the study identifies specific intellectual capital components that impact the asset quality of state-owned, privately owned, and foreign deposit banks differently. The findings indicate that optimizing human capital efficiency and capital employed efficiency is critical for enhancing the asset quality of deposit banks. In contrast, the significance of structural and relational capital efficiency may vary, demanding a careful balance of investment strategies.

EVALUASI SISTEM AKUNTANSI PEMBELIAN TUNAI PADA TOKO ROXY SWALAYAN ENDE

The cash sales accounting system is a unified unit of cash sales system elements and works together which includes functions related to documents and records used as well as internal controls governing cash sales activities. The cash sales accounting system implemented by the company will not run well if it is not balanced with a good internal control system. The purpose of this study was to determine the cash sales accounting system at Roxy Supermarkets Ende. The method used is descriptive qualitative method. Data collection techniques used are observation, interviews, documentation and literature study. The results showed that (1) Functions related to sales transactions were sales function, cash function, warehouse function, shipping function and accounting function. (2) The documents used by Roxy Supermarkets consist of cash sales invoices and proof of bank deposits in accordance with the theory put forward by Mulyadi. However, there are several documents such as cash register tapes, bills of lading, COD sales invoices, recapitulation of cost of goods sold, and proof of memorials that are not applied to Roxy Supermarkets. (3) Accounting records, namely sales journals, cash receipts journals, inventory card general journals, and warehouse cards, have not been applied to Roxy Supermarkets. (4) The cash sales accounting system procedure network used by Roxy Supermarkets consists of sales order procedures, cash receipt procedures, goods delivery procedures, and cash deposit procedures which are in accordance with Mulyadi's theory. However, there are several procedures for the cash sales system that are not implemented at Roxy Supermarkets, namely the procedure for recording cash sales, the procedure for recording cash receipts, and the procedure for recording the cost of goods sold.

Idle liquidity, CBDC and banking

We build models with an interest-bearing central bank digital currency (CBDC) to investigate whether the interest-bearing CBDC can lead to financial disintermediation. In the benchmark model with only CBDC, entrepreneurs can deposit their idle CBDC and banks can hold CBDC to satisfy the reserve requirement. CBDC and bank deposits become complements. A higher CBDC interest rate always promotes investment and may or may not reduce bank lending, because the higher return on CBDC encourages entrepreneurs to accumulate more CBDC and deposit more. More deposits could in turn lead to more bank lending. The interest rate on reserves and the reserve requirement ratio can be effective policy tools that affect bank lending and investment. We consider extensions where cash and interest-bearing CBDC can coexist. The coexistence may require the central bank to adjust the CBDC interest rate or the interest rate on reserves. Our results suggest that the relationship between CBDC and bank deposits are crucial for understanding the effects of CBDC on banking and the macroeconomy.

Role of Development Banking in Economic Growth in Kenya

Purpose: This study delineates the impact of development banking on Kenya's economic growth. The current study adopted a quantitative and exploratory research design.
 Materials and Methods: The study used a quantitative research design. Secondary data was utilized in this study. The data was collected from the financial statements of development banks in Kenya. The target population was 6 development banks in Kenya. The study then progressed to more complex regression analysis, where financial performance ratios and percentages for predictor factors formed the basis of the analysis. The study focused on 6 development financial institutions operating in Kenya.
 Findings: The findings (β=0.1153, p=0.0056), reveal that development banking had a positive and significant effect on economic growth. This infers that an improvement in development banking by one unit would lead to an improvement in economic growth by 0.115 units. The investigation substantiates a tangible and statistically significant correlation between the maturation of the development banking sector and the economic growth spectrum in Kenya.
 Implications to Theory, Practice and Policy: Policymakers in Kenya should work to maintain a stable regulatory system that enhances the role of the banking system in stimulating economic growth. The study emphasizes the need for a stable regulatory environment and well-considered interest rate policies to mitigate adverse economic impacts. Additionally, the study advocates for a pro-poor banking approach to reduce wealth disparities and boost economic growth through improved savings and customer deposits in banks. the banks.

Demand for U.S Banknotes at Home and Abroad: A Post-Covid Update

In principle, physical currency should be disappearing: payments are increasingly electronic, with new technologies emerging rapidly, and governments increasingly restrict large-denomination notes as a way to reduce crime and tax evasion. Nonetheless, demand for U.S. banknotes continues to grow, and consistently increases at times of crisis both within and outside the United States because dollar banknotes remain a desirable store of value and medium of exchange when local currency or bank deposits are inferior. Most recently, the COVID crisis resulted in historic increases in currency demand. After allowing for the effect of crises, U.S. banknote demand appears to be driven by the usual factors determining money demand, with no discernible downward trend. In this work, I review developments in demand for U.S. currency over the past few decades with a focus on developments since early 2020. In addition, I revisit the question of international demand: I present the raw data available for measuring international banknote flows and updates on indirect methods of estimating the stock of currency held abroad. These methods continue to indicate that a large share of U.S. currency is held abroad, especially in the $100 denomination. As shown earlier (Judson 2012, 2017), once a country or region begins using dollars, subsequent crises result in additional inflows: the dominant sources of international demand over recent decades are the countries and regions that were already heavy dollar users in the early to mid-1990s. While international demand for U.S. currency eased during the early 2000s as financial conditions improved, the abrupt return to strong international demand that began with the collapse of Lehman Brothers in 2008 has not slowed and reached new heights over 2020 and 2021. In contrast, however, the growth rate of demand for smaller denominations is slowing, perhaps indicating the first signs of declining domestic cash demand.

FINANCIAL STRUCTURE AND ECONOMIC GROWTH NEXUS IN EMERGING ECONOMICS IN AFRICA

The study investigates specifically the relationship between Gross Domestic Product (GDP), total stock market traded, market capitalization, private credit by deposit bank, human capital, foreign direct investment, population and trade openness (imports plus exports) and economic growth (GDP per capita). We use the extended endogenous growth model with specifications by employing dynamic panel data methodology. Our empirical application of the dynamic panel model to the finance–growth nexus is based on an unbalanced panel dataset of 29 middle-income African countries1 over the period 1990 – 2019 obtained from World Development Indicators. The findings revelead that financial development exerts significant and positive impacts on economic growth. The overall development of the financial system is essential for enhancing economic outcomes. Therefore, attempts at achieving some fine balance between a bank-based system and a market-based system are trivial to growth.

Assessing the Extent of Financial Inclusion Through Bank Office Expansion in Haryana

Abstract Subject and purpose of work: The study presents a comprehensive analysis of the banking sector in Haryana from 2007 to 2022. Materials and methods: The study is based on secondary data. The number of bank branches, deposits, and credits in the state are just a few economic indicators covered in the Statistical Abstract of Haryana. The compound growth rate is calculated to assess the growth of a bank. Results: The findings reveal a consistent rising trend in bank branches, credit and deposits of commercial banks. Notable trends include increasing bank branches, a surge in deposits and robust credit growth, indicating a dynamic and thriving banking sector. The Credit-Deposit ratio gradually increased from 2007 to 2011, reaching a peak in 2012 at 102.10%. Conclusions: The overall number of bank offices has increased dramatically due to the state’s growing financial sector. The steady expansion in bank branches indicates a sustained effort to improve accessibility and financial inclusion.