This study analyzes the impact of participation in the Belt and Road Initiative (BRI) on financial inclusion across 135 countries from 2007 to 2021. Using an Ordinary Least Squares Interrupted Time Series Analysis (OLS-ITSA), the findings show that BRI participation significantly improves access to financial infrastructure, particularly through increased Automated Teller Machines (ATM) penetration in low- and middle-income countries. However, a decline in life insurance usage and slight increases in borrowing, deposits, and Small Medium Enterprises (SME) lending suggest persistent gaps in broader financial participation and a continued household preference for liquidity. Foreign direct investment (FDI) under the BRI primarily supports traditional financial infrastructure, with limited spillovers into digital finance and SME financing. The outcomes of financial inclusion are also affected by macroeconomic variables such as Gross Domestic Product (GDP) per capita, inflation, and internet penetration. The findings demonstrate how infrastructure investments can alter financial accessibility and align with institutional theory and innovation diffusion models. The study concludes that realizing the full financial inclusion potential of the BRI requires complementary reforms, particularly in digital and institutional finance.

Abstract. The COVID-19 pandemic disrupted global financial services and increased demand for rapid liquidity among low-income communities. This study examines the performance of a state-owned pawn institution in Makassar across two flagship products, namely the pawn-based Kredit Cepat Aman (KCA) and the fiduciary installment Kredit Angsuran Sistem Fidusia (KREASI), before (2019) and during (2020) the pandemic. Using a comparative longitudinal design, the analysis draws on revenue data from ten branches. The results reveal a clear divergence in product performance. Revenue from the pawn-based product increased significantly, reflecting customers’ preference for fast liquidity supported by collateral and simple procedures. In contrast, revenue from the fiduciary installment product declined overall, with limited growth observed in only a few branches. Substantial variation across branches was also evident, with branches located in commercial centers demonstrating greater resilience than those in peripheral areas. These findings indicate that adjusting product portfolios to local shock profiles—by maintaining fast, collateral-based lending channels and recalibrating installment financing in line with recovery dynamics—can strengthen financial inclusion and institutional resilience. The study contributes to the literature on microfinance performance during crises and highlights the importance of contextual risk management in sustaining financial services under conditions of economic disruption.

Abstract Using detailed data from the introduction of a new high‐value payment system (HVPS) in Canada, we show how participants learn to use the new gridlock resolution arrangement to create gridlock and save liquidity. These observed behaviors are consistent with the equilibrium of a “gridlock game” that captures the key incentives participants face in the system. The findings have important implications for the design of HVPSs and shed light on financial institutions' liquidity preference.

ABSTRACT The paper examines the financial balances of the US economy. Government is the main borrower and households and the foreign sector the main lenders. Business net lending is minimal. The balances and their underlying transactions contradict the loanable funds theory and its “global savings glut” variation. Keynes's liquidity preference theory is correct but, in its original formulation, overlooked government and foreign sector flows. The internal finance of business investment aligns with Kalecki's profit equation. The foreign deficit, tied to the dollar's role as a reserve currency, reflects systemic global demand for dollar assets, as explained by Triffin and Minsky.

Keynes’ theory of liquidity preference and microfinance banks in Africa

Keywords Startup Development, Market Sizing, TAM, SAM, SOM, Blue Ocean Strategy, Lean Startup, MVP, A/B Testing, Pivot, Unit Economics, CAC, LTV, Churn Rate, Payback Period, Viral Coefficient, Network Effects, Venture Capital, Valuation, Dilution, Convertible Notes, Liquidity Preference, Exit Strategy ABSTRACT This paper provides a comprehensive mathematical analysis of startup development, distinguishing high-growth ventures from traditional small businesses. With technology startup failure rates approaching 90%, primarily due to a lack of market need, this study argues for a shift from intuition-based execution to quantitative validation. The research outlines a five-phase framework for survival: utilizing the TAM/SAM/SOM models for market sizing, applying Lean Startup methodologies for product validation, and optimizing Unit Economics through the LTV:CAC ratio. Furthermore, it explores the mechanics of exponential growth via the Viral Coefficient and Network Effects, alongside the financial implications of venture capital funding and dilution. Through theoretical analysis and real-world case studies of companies like Airbnb and Slack, this paper demonstrates that startup success is not merely a function of innovation, but a derivative of specific, optimizable economic variables.

Purpose: The general objective of this study is to assess the influence of macroeconomic factors on the financial stability of commercial banks in Rwanda. The study is grounded on theories such as the Interest Rates Theory, Inflation and Deflation Theory, the Liquidity Preference and the Financial Intermediation Theory. Methodology: A descriptive research design was employed, focusing on nine commercial banks in Rwanda operating between 2015 and 2023. Explanatory research design was adopted. Findings: Based on the panel regression analysis, it was established that interest rates, exchange rates and inflation had significant effect on financial stability of commercial banks in Rwanda. Unique Contribution to Theory, Practice and Policy: The study recommends that the National Bank of Rwanda should adopt a gradual but properly calibrated interest rate policy that is required to solidify bank intermediation spreads, as well as the need to maintain cheap credit accessibility. In particular, regular reviews of the policy rate that are in synch with liquidity and risk perceptions in the banking sector should be embedded so that rate adjustments remain supportive of stability without unnecessarily hindering private sector lending.

ABSTRACT This article presented an analytical extension of Minsky's Financial Instability Hypothesis (FIH) to examine boom-and-bust dynamics in Financialized Emerging Economies (FEEs). We argued that Systemic Financial Instability (SFI) in FEEs was not merely endogenous but constituted a structurally subordinate and externally amplified form of the Minskyan cycle. To demonstrate this, we integrated Keynes’s monetary theory of production, which highlighted the role of uncertainty and liquidity preference, with structuralist and regulationist perspectives that characterized the financial subordination of FEEs within the global system. Through a comparative and structured analysis of financial crises in FEEs — including the Mexican Peso Crisis (1994), the Asian Crisis (1997), and the Russian Crisis (1998) — we identified key mechanisms, such as foreign currency-denominated debt, capital flow volatility, and regulatory fragility, that transformed endogenous fragility into systemic crises under the weight of external constraints. Our findings underscored the urgent need for regulatory frameworks that addressed the interaction between internal financial dynamics and the structural constraints of global integration.

This study examines the relationship between deposit growth and profitability at CRDB Bank Plc in Tanzania, using Return on Equity (ROE) as a profitability indicator. The commercial banking sector in Tanzania faces considerable challenges in maintaining profitability due to fluctuating economic conditions and increased competition. Factors such as credit risk management, optimization of capital structure, macroeconomic influences (for example, deposit growth), regulatory compliance, and rapid digital transformation contribute to this complexity, highlighting the need for a deeper understanding of profitability dynamics. Despite a notable rise in deposits, academic literature lacks insights into the direct impact of deposit growth on bank profitability in Tanzania. To fill this gap, the research focuses on CRDB Bank Plc, aiming to shed light on the subtle interaction between deposit levels and ROE. The current study utilized liquidity preference, financial intermediation, and modern portfolio theories. By analyzing quarterly secondary data from 2014 to 2023 and applying correlation and regression analyses on 37 observations, the findings suggest a weak positive correlation between deposit growth and profitability, with a low R-squared of 1.87%. The average ROE was 17.90%, compared to an average deposit growth of 13.08%, indicating that deposit growth is not a significant factor influencing ROE. Therefore, the study recommends exploring additional factors affecting bank performance, including macroeconomic conditions and regulatory compliance, to improve strategic decision-making. Future research should also compare CRDB's performance against industry standards to identify potential improvements, ultimately aiming to support the development of a resilient banking environment that promotes economic growth in Tanzania.

Rural SACCOs often face irregular cash inflows, high delinquency rates, and low deposit mobilization capacity. These disparities underline a persistent institutional gap in liquidity strategy and financial resilience in rural SACCOs. The purpose of the study was to assess the effect of cash-flow planning on the financial performance of deposit-taking savings and credit co-operative societies in Samburu County, Kenya. Liquidity Preference Theory was the main theory of the study. The study employed a descriptive cross-sectional design. The unit of analysis for this study consisted of the 30 licensed deposit-taking SACCOs in Samburu County. The study targeted all 120 eligible respondents, comprising finance managers, accountants, internal auditors, and operations managers from all 30 deposit-taking SACCOs. The census method was used to sample the study respondents. Data was collected using structured questionnaires and analysed through descriptive and inferential statistical methods. The present study conducted a pilot test with 12 participants, representing approximately 10% of the total population of 120 respondents. These participants were drawn from three deposit-taking SACCOs in Isiolo County with similar operational profiles. The study established a moderate and statistically significant positive relationship between cash flow planning and financial performance. Regression analysis showed that cashflow planning explained 29.1% of the variance in financial performance, with a one-unit increase in cashflow planning resulting in a 0.639-unit increase in financial performance. The findings concluded that effective cash flow forecasting, budgeting practices, and alignment of inflows and outflows improve liquidity readiness and operational efficiency. It is recommended that deposit-taking SACCOs adopt formalized cashflow planning frameworks to guide liquidity management decisions. These frameworks should incorporate tools for cash flow forecasting, cash budgeting, and inflow–outflow alignment. SACCOs should establish liquidity reserve policies to safeguard against unanticipated financial obligations and ensure uninterrupted service delivery.

This study examined the impact of liquidity risk on the financial performance of listed commercial banks in Kenya from 2013 to 2023. Using the Liquidity Preference Theory, it employed a longitudinal approach and conducted a census of all 11 banks listed on the Nairobi Securities Exchange (NSE). These banks operate under strict oversight by both the Capital Markets Authority (CMA) and the NSE, which require consistent disclosures, financial reporting, audits, and adherence to corporate governance standards. This regulatory environment promotes transparency in asset-liability management (ALM) and risk control, making these banks an ideal setting for studying the relationship between liquidity risk and financial performance. The research utilized secondary data from annual financial statements and reports from the Central Bank of Kenya. Financial performance was measured using the Return on Assets (ROA) metric. Panel regression analysis revealed a positive relationship between liquidity risk and financial performance, indicating that banks with stronger liquidity risk management tend to perform better financially. The findings suggest that Kenyan-listed banks have maintained consistent and effective liquidity risk management over the decade, which has contributed to their stability during periods of economic uncertainty. Enhanced liquidity management further improved their resilience and financial outcomes. The study recommends that banks maintain sufficient liquidity buffers, conduct regular stress tests, and perform scenario analyses to guard against unexpected liquidity issues and promote sustainable growth.

This study examines the investment behaviour of rural working women in Nagaon district of Assam, with a focus on their preferences, influencing factors, and awareness levels. Primary data were collected from 150 respondents through a structured questionnaire, and analysis was conducted using percentages and the Chi-square test. Findings reveal that savings accounts are the most preferred investment avenue, followed by insurance and recurring deposits, reflecting a preference for safety and liquidity. Awareness of modern instruments like mutual funds and PPF/NSC remains very low. The study highlights the need for financial literacy and policy measures to promote diversified investments.

This study investigates the effect of liquidity risk hedging on share price volatility among NSE-listed firms in Kenya. Liquidity risk, the possibility that a firm may not be able to meet its short-term financial obligations, can significantly influence investor confidence and share price stability. The research examines whether firms that adopt liquidity risk hedging experience reduced volatility in their share prices compared to those that do not. Using a panel data approach, the study analyzes financial data from a representative sample of NSE-listed firms over a ten-year period. The study was anchored on liquidity preference theory and a mixed research design for the period between 2013 and 2022. Fifty-four NSE-listed firms were listed for the study. The findings indicate a p-value of 0.128, and the coefficient of liquidity risk hedging is -0.3386364. The results imply that a unit increase in liquidity risk hedging results in a decrease in the share price volatility of Kenyan firms listed on the NSE. The mean score of Capital Markets Authority (CMA), the moderating variable, is 3.95, indicating that CMA regulations have a moderating effect on the relationship between liquidity risk hedging and share price volatility of NSE-listed Firms in Kenya. The study accepted the alternative hypothesis and concluded that liquidity risk hedging statistically affects the share price volatility of listed firms in Kenya. The findings reveal a statistically significant negative relationship between effective liquidity risk hedging and share price volatility, suggesting that prudent liquidity management enhances market stability and investor confidence. The study contributes to financial risk management literature and provides practical insights for corporate managers and investors in emerging markets. The study recommends CMA and NSE to mandate more comprehensive disclosure of liquidity risk management strategies in financial reports, the listed firms to develop and enforce a risk disclosure index for listed firms to ensure consistency, comparability, and reliability of financial statements and CMA and NSE to support the development of local financial markets for hedging instruments to provide firms with accessible tools for managing liquidity risk. Future studies should analyze sector-specific impacts to identify whether liquidity risk hedging is more effective in certain industries than others, conduct comparative studies between the NSE and other stock exchanges to explore how market structure and regulation influence the hedging-volatility relationship and apply models such as GARCH or panel vector autoregression to better understand volatility behavior over time and across firms as the traditional linear regression may not capture dynamic or non-linear relationships.

January effect, Lunar New Year effect, and liquidity preference

Islamic commercial banks have gained prominence in Indonesia’s financial system, yet their profitability still lags behind conventional banks. Understanding the financial determinants that influence the profitability of these institutions is critical for improving their competitiveness and ensuring sustainable growth. This study investigates the effects of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Operating Costs to Operating Income (BOPO), and Financing to Deposit Ratio (FDR) on bank profitability, measured by Return on Assets (ROA). This research adopted a quantitative approach using secondary data from the annual financial statements of 12 Islamic commercial banks registered with the Financial Services Authority (OJK) of Indonesia, covering the years 2019 to 2023. Multiple linear regression analysis was applied after conducting descriptive statistics and classical assumption tests, including normality, multicollinearity, heteroscedasticity, and autocorrelation. The regression model was used to examine the relationship between the four independent variables (CAR, NPF, BOPO, FDR) and ROA. The findings show that CAR and FDR have a significant positive effect on ROA, indicating that strong capital adequacy and efficient liquidity management improve profitability. In contrast, NPF and BOPO negatively affect ROA, demonstrating that high credit risk and operational inefficiency diminish bank performance. The regression model explains 72.3% of the variance in ROA, confirming the robustness and relevance of the selected variables in determining profitability. The results are consistent with agency and liquidity preference theories and highlight the distinctive challenges faced by Islamic banks, such as compliance-related costs and limitations in accessing conventional financial instruments. Operational efficiency, credit quality, and liquidity management emerge as critical strategic areas.

At its core, commercial banking is a business deeply entrenched in the dynamics of risk and reward. Financial risks, encompassing credit, liquidity, price and operational risks, serve as inherent components of banking activities. These risks are not only omnipresent but also inherently interconnected, creating a complex web that directly influences financial performance of commercial banks. The purpose of the study was to determine the effect of financial risk on financial performance of listed commercial banks in Kenya. The study was grounded on extreme value theory, credit risk theory, asymmetry information theory and liquidity preference theory. Correlational research design was adopted in the study as it helps researcher explore and explain the effects of financial risks on the financial performance of commercial banks. Nairobi Securities Exchange (2023) indicates that there are 10 commercial banks listed in NSE as of 31st December 2023. The target population consisted of all 10 listed commercial banks in Kenya which formed the unit of analysis. Time Series secondary panel data was utilized. The data was obtained from published financial statements of 10 listed commercial banks, and CBK bank supervision reports from 2019 to 2023.The coefficient of determination (R2) was used to determine how much variation in dependent variable is explained by explanatory variables. Statistical Package for Social Science was used as data analysis tool. Results showed that credit risk, price risk and operating risk had negatively and significant effect on the financial performance of commercial banks in Kenya. However, liquidity risk had negative and insignificant effect on financial performance of listed commercial banks in Kenya. Also, majority of listed commercial banks had adequate liquidity to cover loans in the event of an economic downturn resulting in loan defaults. It was concluded that credit risk had a negative and statistically significant relationship with financial performance of commercial banks listed in NSE. This implies that when non-performing loans are increasing, performance is likely to be going down. It was also concluded that liquidity risk had a negative and insignificant effect on financial performance of commercial banks listed in NSE. . The study recommended that the managers of the bank to adopt the policies that will ensure debtors ratios does not increase at high ratios in relation to the total capital since this amounts to credit risk. The managers should minimize the credit risk by ensuring the credit worthiness of the clients is critically evaluated with collateral

Purpose: To examine how income and interest rate affect mobile banking transactions in India’s financial system during the digital era from January 2016 to December 2022. Design/Methodology/Approach: The authors first test the stationarity of variables using ADF and PP tests, followed by a residual-based Granger and Johansen cointegration tests. The dynamic ordinary least squares (DOLS) method is used to estimate the long-run coefficients whereas the short-run coefficients are examined through the ECM. Additionally, FMOLS, CCR, IRF and diagnostic tests are applied to ensure the robustness of the results. Findings: The stationarity tests indicate that all selected variables are integrated at their first differences. Furthermore, the Engle-Granger and Johansen cointegration tests confirm a long-term relationship. The DOLS results show that income (Y) and short-term interest rate (SR) significantly influence money demand through mobile banking in the long run. In the short run, the coefficients of income and interest rate are not statistically significant; however, the negative and significant error correction term (ECT) indicates adjustment toward long-run equilibrium. Additionally, the FMOLS, CCR, and IRF models support the robustness of the long-run results, and diagnostic tests confirm the accuracy of the findings. Originality/value: This study makes a unique contribution by examining the effects of income and interest rate on mobile banking in the digital era, as the dependent variable instead of the traditional measure of money demand—an area with minimal empirical research. It provides a deeper perspective on how these factors shape mobile banking transactions in an evolving financial sector. By bridging traditional economic theory with modern financial practices, this study enhances our understanding of liquidity preference in the digital age and demonstrates the ongoing relevance of Keynesian concepts in today’s digital finance environment.

Despite the growing importance of the relationship between pension fund investment and market liquidity in the Nigerian capital market, it still remains under-researched in the academic literature. As a result, this study examines the impact of pension funds (PFIs) on market liquidity in the Nigerian capital market from 2004 to 2023, using an ex-post facto research design. The analysis uses an autoregressive distributed lag (ARDL) model and multiple regression with an error correction mechanism (ECM) to examine the effects of different PFIs, including pension fund assets (PFAs), pension fund investments in shares (PFIEs) and pension fund investments. in government securities (PFIGS), on key liquidity indicators such as turnover indicators and gross domestic product growth rate (GDPGR). The findings reveal that both PFA and PFIE significantly increase market liquidity, supporting liquidity preference and portfolio theory. Conversely, PFIGS shows no significant impact on market liquidity, suggesting that government securities may not be as effective in stimulating market activity. Based on these results, the study recommends that policymakers encourage pension fund managers to diversify their portfolios by including a wider range of asset classes, especially equities, while reconsidering the heavy reliance on government securities. The aim of these recommendations is to optimize the role of pension funds in managing economic development and market stability. The study contributes valuable insights to the theoretical discourse on liquidity and portfolio management and provides practical guidance for enhancing the efficiency and resilience of the Nigerian capital market

ABSTRACT: Tthis paper aims to discuss how the demands and logics of the financial market are reflected in the work of teachers in private and financialized higher education organizations in Brazil, identifying elements that contribute to the debate about the daily implications of financialization in the activity of teachers. Based on exploratory research with male and female teachers inserted in the context of the financialization of higher education and the subsequent content analysis of the responses obtained, it was shown that financialization deepens the process of transformation of labor initiated by the commodification of education. In addition to the precariousness and intensification of work, which are reflections of elements of financialization such as the preference for liquidity and short-term profitability, financialization reconfigures teaching and education management work, increasing standardization, widening the distance between management and teaching work and introducing new roles related to the management of appearances within these organizations and the consequent self-marketing and self-promotion of teachers.

The article examines the main theoretical approaches to the formation of government bond yields. Classical theories, including expectations theory, liquidity preference theory, segmented markets and preferred placement, as well as modern stochastic models, are analyzed. It is shown that none of the theories provides a complete explanation of the observed structure of interest rates, and a comprehensive approach is required that takes into account institutional features and investor behavior. Particular attention is paid to the relationship between returns and inflation expectations, monetary policy, fiscal sustainability, market liquidity and global macroeconomic conditions, as well as the applicability of return models to the Russian economy.