Maintenance Of Financial Stability Research Articles

Համաշխարհային տնտեսության հեռանկարները. ճգնաժամի խորացման ուրվականը / WORLD ECONOMIC PERSPECTIVES: THE SPECTER OF A DEEPENING CRISIS

The paper explores the modern prospects for the development of the world economy. In particular, it is noted that most countries managed to avoid deepening economic recession in the winter of 2022 due to the implementation of restraining economic policy. However, in the beginning of 2023 signs of financial system instability emerged due to the increase in the degree of vulnerability of the financial sector driven by a strict monetary policy. The current challenges facing the world economy can be categorized into three groups։ ensuring further recovery of economy, containment of inflation and maintenance of financial stability. From this point of view, governments are advised to adopt a fiscal strategy aimed at reducing the current inflationary pressure and mitigating medium-term public debt vulnerability. The implementation of such a policy will simultaneously stabilize the level of refinancing interest rates.

Implikacije po finansijsku stabilnost sa tržišta kripto-aktive

A component of digital finance that has been developed with an aim to decrease the usage of cash payments and improve financial inclusion is the crypto-asset. Concerns have been raised about the preservation of financial stability, which stands in for one of the primary objectives of central banks - along with price stability - as a result of the significant growth of the market capitalization of crypto-assets, as well as the rise in the variety of crypto-assets instruments and the volatility of their prices. Operating outside of national borders, crypto-asset trading platforms could lead to a concentration of risk and a lack of business transparency. The market for crypto-assets is growing more quickly, which highlights the need for strict regulation of that sector of the market, data collection to effectively monitor transactions, as well as providing protection for consumers and investors. The safety of all partipicants, the efficient operation of the financial system, and the maintenance of financial stability should all be guaranteed by the regulation of the crypto-asset market.

Les répercussions du taux de change sur le taux d'inflation au Maroc : investigation empirique (1980-2019)

The objective of this paper is to empirically analyze the impact of the exchange rate on inflation in Morocco. The search for competitiveness of the economy at the international level and the maintenance of financial stability are priorities in developing countries.Indeed, the rate of exchange variable has become one of the controversies of monetary policies.  This variable is taken into account in determining the level of inflation. This leads us to treat the notion of ERPT Exchange-rate pass as an indicator of the responsiveness of international prices to changes in exchange rates. Using data covering the period 1980-2019 analyzed with the ARDL model, the estimates showed that the exchange rate exerts a significant negative effect on inflation in Morocco. Thus, the exchange-rate pass through still appears as an important variable of inflation in the long run.

Цифрові гроші центральних банків: майбутнє інституційних змін у банківському секторі

The purpose of the article is to reveal the essence and features of the introduction of digital currency of central banks and their impact on the conditions of monetary policy, financial stability, as well as institutional transformations in the development of national banking systems. The study is based on an analysis of projects of issuance and use of digital currencies of the ECB and central banks of leading countries, as well as the results of pilot projects of the National Bank of China on the use of the digital yuan and NBU on the e-hryvnia circulation. It is proved that digital currency of the central bank should be considered as a new dematerialized form of national currency in addition to cash and non-cash forms. Particular attention is paid to the study of the impact of the use of digital currency by central banks on the main parameters of economic policy. The main directions of potential influence of digital currency use on transformation of mechanisms of realization of monetary, budgetary and tax, macroprudential policy, maintenance of financial stability, activization of action of channels of the monetary transmission mechanism, and also on reforming of system of the state financial monitoring and bank supervision are substantiated. It is determined that one of the consequences of the use of digital currency will be the ability to ensure full control over all monetary transactions, which will help reduce the shadow economy and corruption. Structural and logical schemes of centralized and decentralized models of issuance and circulation of digital currency of central bank have been developed, directions of changes in the structure and functions of commercial and central banks, as well as in the structure of the financial and credit system in general have been substantiated.

Assessment of Bad Loans in Turkey: What Role do Financial Conditions have?

This paper analyzes non-performing loans in the Turkish banking sector with a special focus on the role of financial conditions after the global crisis. In doing so, the empirical framework shows that the determinants of non-performing loans have changed after the crisis. In particular, non-performing loans are mostly shaped by bank-specific factors before the crisis, whereas these variables have a reduced effect after the global crisis. This finding is attributed to global developments in this period, which certainly had effects on both global and domestic financial conditions. The inclusion of financial conditions index as an additional regressor in the post-crisis episode also confirms this finding by yielding a statistically significant coefficient while the sign of the coefficient implies that tighter financial conditions cause higher non-performing loans. This supports our view that financial conditions take account for the dynamics of bad loans after the crisis. In the upcoming period, the course of global policy normalization may affect and even tighten financial conditions, thereby causing non-performing loans to gain momentum. All these analysis results signal challenges and prospects regarding the maintenance of financial stability and the conduct of monetary policy.

Twin Peaks in South Africa: a new role for the central bank

This contribution explores the newly introduced South African Twin Peaks model and its unique features. The main focus of the article is on the comprehensive financial stability mandate imposed on the South African Reserve Bank as central bank by the Financial Sector Regulation Act 9 of 2017. The legislative framework enabling the execution of the SARB's financial stability mandate is interrogated and the strengths and weaknesses of the model, from the perspective of the promotion and maintenance of financial stability are considered.

In Search of Financial Stability in Nigeria: From Legislation to Effective Regulation of Banks

The systemic importance of banks in any economy brings to the fore the inevitability of exploring ways of keeping banks not only strong but also within the safety level desired by depositors and financial managers. This is underscored by the invaluable and fundamental roles of these financial institutions in the maintenance of financial stability. The state of banking regulation in Nigeria, especially before the introduction of reforms in the sector, had given serious cause for concern. This observation is in light of serious illiquidity and systemic distress that was synonymous with the banking sector in Nigeria in the 1990s and even into the opening years of the twenty-first century. This article examines in detail the legal and institutional frameworks for banking regulation in Nigeria. It finds that the challenge of ineffective regulation of the banks in the country may not necessarily be associated with the dearth or non-comprehensiveness of statutes on the subject but rather borders on uncoordinated and ineffective enforcement mechanisms, coupled with policy inconsistency on the part of banking regulators. This situation engenders confusion, uncertainty and instability because prospective investors tend to be more hesitant, depositors shy away from saving with banks and banks tend to have to grapple with persistent illiquidity when the system is unpredictable. The article therefore advocates a policy shift from legislative review to effective enforcement of the existing laws regulating banks in Nigeria in order to grow these financial institutions into transparent, efficient, strong and globally competitive institutions.

Financial Stability Report: Lessons From the Central Banks

The economic and social costs of the financial crises are very high led the central banks to register financial stability, in addition to the price stability, in the middle of their concerns. Nevertheless, the objectives of the central banks as regards financial stability are less clear and specific that in the monetary field. This difficulty related to the abstract character and multidimensional of the concept of financial stability makes difficult to quantify an objective, to check the realization of it and complicates the communication strategy to be adopted on the matter. In spite of these difficulties, the central banks reinforced their communications as regards financial stability by the publication of Financial Stability Report (FSR). The latter describe the various risks overall weighing on the stability of the financial system and formulate a judgment on its impact strength and its capacity to reabsorb the various potential shocks. The RSF aim reinforcing the transparency on the various components of the financial system and at supporting the emergence of a framework of co-operation between the various speakers. Vis-a-Vis the stakes of financial stability, the majority of the central banks widened their missions with the maintenance of financial stability. In the same way, they recorded signification advances in the installation of the framework of financial stability (institutional, lawful, and operational). Within this framework, this paper tries to describe the practices of the central banks as regards development of the FSR and formula of the recommendations aiming at proposing an exhaustive analysis of the FSR. Initially, it presents the objectives sought through this communication strategy and examines, without going into the details, the structure adopted in the development of the RSF.

Taking Identity Seriously: When Identity Meets Regulation

Financial stability is a public good. Banking regulation has a vital role to play in the provision and maintenance of financial stability. This article introduces a multiple identity approach to the regulation of the banking sector. It conceptualizes bankers and regulators sharing a common social identity with the rest of the society, namely taxpayer identity besides their respective banker and regulator identities. The article underlines the balance between two social identities, and the reasons why bankers and regulators cannot achieve a balance between the two. Finally, motivated by the multiple identity approach on the political economy of banking regulation, the article discusses two major policy recommendations for regulatory design, at least, to partially address the multiple identity problem.

Effect of Financial Stress and Positive Financial Behaviors on Cost-Related Nonadherence to Health Regimens Among Adults in a Community-Based Setting.

IntroductionLittle is known about the role of positive financial behaviors (behaviors that allow maintenance of financial stability with financial resources) in mitigating cost-related nonadherence (CRN) to health regimens. This study examined the relationships between positive financial behaviors, financial stress, and CRN.MethodsData came from the 2011 Speak to Your Health! Community Survey (n = 1,234). Descriptive statistics were computed to examine financial stress and CRN, by chronic condition and health insurance status. We used multivariate logistic regression models to examine the relationship between positive financial behaviors and financial stress and their interaction on a composite score of CRN, controlling for health insurance status, educational level, age, marital status, number of chronic conditions, and employment status.ResultsThirty percent of the sample engaged in CRN. Participants reported moderate financial stress (mean, 13.85; standard deviation [SD] = 6.97), and moderate positive financial behavior (mean, 8.84; SD = 3.24). Participants with employer-sponsored insurance, Medicaid, Medicare, the Genesee Health Plan, high blood pressure, asthma, and diabetes had the highest proportion of CRN. The relationship between financial stress and CRN was not significantly different between those who reported lower versus higher levels of positive financial behavior (P = .32). Greater financial stress was associated with a greater likelihood of CRN (odds ratio [OR] = 2.49; 95% confidence interval [CI], 2.08–2.99). Higher level of positive financial behavior was associated with a lower likelihood of CRN (OR = 0.80; 95% CI, 0.67–0.94).ConclusionFinancial literacy as a means of promoting positive financial behavior may help reduce CRN. An intervention strategy focused on improving financial literacy may be relevant for high-risk groups who report high levels of financial stress.

ДЕИНДУСТРИАЛИЗАЦИЯ, РЕИНДУСТРИАЛИЗАЦИЯ И РАЗВИТИЕ

The paper focuses on deindustrialisation, which appears to be as the diminishing share of manufacturing industry in GDP and employment. This phenomenon emerged in the mid-20th century, initially in Great Britain and the United States, but spread to other developed countries in the late 1960s –1970s. Later, in the 1980s, deindustrialisation took place in Latin America, too. At the turn of the century, it embraced the newly industrialised countries (“tigers”) of East Asia and the Asian giants, China and India. The author differentiates deindustrialisation in developed and developing (emerging) countries. In the former case, it is the effect of the internal development (productivity growth, technological upgrading, etc.), whereas deindustrialisation in countries of catching-up development is premature, because it begins earlier than its all proper premises have matured. Premature deindustrialisation does not succeed in progressive technological changes in economy. Attempts to find an alternative to premature deindustrialisation in the state-led industrial policy can have a limited effect. They do not take into account the large social base of economic policy which is aimed at maintenance of financial stability but aggravates premature, negative deindustrialisation. As the case of Brazil demonstrates, not only the old upper, but also the new low-middle and low social groups prefer such stability instead of reindustrialisation. At the same time, the former poor, who abandoned poverty due to the Workers' Party (PT) government’s social policy in Brazil, in their majority are not prepared for a skilled industrial labour and other kinds of contemporary economic activities. They have become consumers but not yet labourers of the 21st century. The seemingly obvious resolution of this problem by means of education improvement is not as simple as it appears at a first glance. It requires a profound revision of social policy as a whole, which has to be aimed at the development of creative activity, this genuine foundation of innovations and technological progress. Therefore, the real choice is not between deindustrialisation and reindustrialisation but between progressive, creative and regressive, destructive deindustrialisation.

Supervision of Non-Banking Financial Institutions in Croatia

Financial sector has a specific role in the country’s economy as a driving force of growth and development. In the same way as the efficiency of the national economy can be fostered by the development of financial mechanism, it can be also threatened by possible financial crisis and instabilities.Therefore, a question of regulation and supervision of all parts of financial system are of major importance for any country. The regulations refer mostly to maintenance of financial stability and consumer protection. In order to protect the interest of the society and to accelerate the economy development it is necessary to provide adequate legal framework as well as independent supervision institutions.The structure of the financial sector in the Republic of Croatia is underdeveloped and characterized by domination of the banking sector and the issue of regulatory model of financial sector is solved by adopting the model of a group of independent agencies for each activity. The Croatian National Bank is in charge of the supervision of operations conducted by banks and savings banks. Non-banking financial institutions (investment funds, pension funds, insurances) are regulated by a wide range of regulatory institutions – The Securities Commission of the Republic of Croatia, Agency for Supervision of Pension Funds and Insurances, Directorate for Supervision of Insurance Companies, State Agency for Deposit Insurance and Bank Rehabilitation and Ministry of Finance. Because of such a wide range of regulatory institutions, the problems of authority overlapping and insufficient regulation unavoidably arises, especially by the development and deregulation of financial markets.Because of that, it seems reasonable to investigate the existing regulatory framework of non-banking financial institutions in Croatia. The aim of this paper is to determine if the introducing of an integrated financial supervision of non-banking financial sector is justified. In order to give an answer to this complex question, a comparative analysis will be carried out by presenting a models of consolidated supervision of financial institutions and markets for several European countries.The authors conclude that there are measures to ensure a stable and more efficient financial system.

HYPOTHETICAL EVOLVENT OF MACROECONOMIC STABILITY SURVEILLANCE INDICATORS AND EUROPEAN UNION ‘S INITIATIVES FOR MAINTENANCE OF FINANCIAL STABILITY

Starting from the 2008 summer, the European Union’s economy feels the recession. The dissatisfaction of EU citizens does not allow to implement impartial (although sometimes painful) actions for the recovery of the situation which lasts too long and rises many linked problems. In the latest European Commission’s document there is stressed, that economic, financial as well as moral recession is now affecting so many parts of Europe that this situation shaken the disrupt the trust in the ability of Europe’s political and economic system to deliver on the EU Treaty’s ambition of “sustainable development… based on balanced economic growth.” However such statements are not or should not be unexpected and could be interpreted at least as catchwords. Considering prevailing situation of moral decline, incredulity in the capability of political actions the article solves the scientific problem – how to evaluate the macroeconomic situation of state’s economy? What are the main indicators for macroeconomic stability surveillance of state’s economy? Is it possible to apply it to every country? Are there any correlations between theoretical instruments (policies) for coordination of macroeconomic situation in the state level and practical actions made by the EU’s government? The object of research is state’s (EU member state’s) macroeconomic stability and EU-actions for the maintenance of macroeconomic and financial stability. The subject of the research is theoretical indicators for the macroeconomic stability surveillance. The article aim’s to construct hypothetical evolvent of macroeconomic stability surveillance indicators and to analyse some initiatives of EU’s government for maintenance of financial stability. To achieve this aim four tasks are solved: to systemise existing theoretical instruments (policies) for coordination of macroeconomic situation in the state level; to construct the evolvent of macroeconomic stability surveillance indicators; to highlight some concerned initiatives of the EU’s government for the maintenance of macroeconomic and financial stability; to provide negotiable recommendations for actions considering macroeconomic stability surveillance in the EU. Scientific originality and practical significance of the article: the article solves original scientific problem - is there a method for evaluation of macroeconomic stability of state’s economy and if these indicators are appropriate for practical usage; solution of the scientific problem enabled to provide the comprehensive evolvent of macroeconomic stability surveillance indicators; there are provided practical and substantiated recommendations for actions considering macroeconomic stability surveillance in the EU. The article does not aim to present all EU’s initiatives towards stable economy maintenance. It is a key to highlight that they do exist but situation is still remains very complicated. Theoretical comparative analysis of the scientific works, analysis of legal documents as well as strategies and practical papers in this field was taken as the research methods. The recommendations and conclusions are provided using reality-based, prognostic – analytical method. DOI: http://dx.doi.org/10.5755/j01.eis.0.6.1792

The central bank policy and the financial stability in European Union (EU)

In this paper, we aim at conducting an analysis of the supervision and regulation arrangements at the level of EU27 countries. We assess the involvement of central bank in the maintenance of financial stability as well as an analysis of the financial supervision unification index and the central bank as financial authority index calculated at the level of the year 2011 (August), according to Masciandaro’s (2004) methodology. We will also analyse these indices dynamically and comparatively for the year 2004 – the year of the first wave of adherence to the European Union (EU), respectively 2008 – the first year when the present crisis was felt in the whole Europe. We observed that at the level of the European Union, there is heterogeneity regarding the types of financial supervision national systems. The degrees of concentration of supervisory and regulating power as well as the central bank degree of involvement differ from one country to another. There are four possible patterns in the interaction between the indexes. The two most frequent models are polarized: 11 countries with a high concentration of powers with low central bank involvement and 10 countries with a low concentration of powers with high central bank involvement. From the point of view of the dynamics of these indicators, we may notice in whole an increase in the degree of concentration as well as in the degree of involvement of the central bank in the financial supervision and regulation during the period of 2004 to 2008. During the period of 2004 to 2008, a significant increase of these indicators was registered for the new members, while for the old member states, this had relatively reduced changes, the averages for the two groups of countries becoming fairly equal, as a result of caching up process. During the period of 2008 to 2011, the evolution has registered a higher increase in the value of the two indicators for the old member countries, phenomenon which may be explained by the implications of the international financial crisis broken out in August 2007. We propose a change in the present EU-level financial supervisory regime as a combination of the sectoral model with the objectives-centred model, such as the following: the micro-stability (prudential regulation) could be maintained at the level of the present European supervisory authorities (ESAs), but the transparency in the market of intermediaries and customer protection, and respectively, the safeguarding and promotion of competition in the financial intermediation sector should be tackled by two other distinctive integrated agencies.   Key words: Central bank, financial stability, financial supervision and regulation, the financial supervision unification (FSU) index, the central bank as financial authority (CBFA) index.

The Coming Transformation of Continental European Banking?

This paper first provides a broad overview of current conditions in the banking industry in some of the countries that will participate in European economic and monetary union. It then goes on to identify a number of important forces for change. Some of these are global in nature, but likely to have a particularly strong impact in continental Europe, while others (such as the introduction of the euro) are distinctively European. The paper then notes just how little restructuring has actually taken place in continental European banking in the last decade and offers some explanations. The conclusion reached is that the banking sector in continental Europe may now be about to enter a period of sharply increased competition. This will pose challenges for national regulators and other policy-makers concerned with the maintenance of financial stability.

Lender of Last Resort: What Have We Learned Since Bagehot?

The maintenance of financial stability is facilitated by well-designed “safety-net” arrangements aimed at limiting the risk of disruption in the financial system (crisis prevention) and the consequences of disruption if it arises (crisis management). An important element of crisis management is the lender of last resort (LOLR) function. This article reviews the main ideas on LOLR reflected in the academic literature, going back to Henry Thornton almost 200 years ago.

Lessons from the Asian Crisis: A Central Banker's Perspective

This paper presents a central banker's perspective on the Asian crisis. Central banks have two core missions: the pursuit of monetary policy to achieve broad macroeconomic objectives and the maintenance of financial stability, including the management of financial crises. The management of financial crises is closely connected to the regulation and supervision of the banking system, so it, as well as broader issues related to systemic risk in the financial sector, is included as part of the central banker's perspective. Central banks also often have or share with finance ministries control over exchange rate policy, including the choice of an exchange rate regime and the management of that regime. Therefore, the roles of exchange rate policy, macroeconomic policy, and bank supervision and regulation in the crises are examined and some lessons in each case are suggested. The author's interpretation of the sources of and appropriate policy responses to the crises among the Asian emerging economies draws heavily upon the work of Hyman P. Minsky.

Some Comments on Thai Development Planning

Research Article| April 01 1972 Some Comments on Thai Development Planning David Feeny David Feeny Search for other works by this author on: This Site PubMed Google Scholar Far Eastern Survey (1943) 12 (4): 317–326. https://doi.org/10.2307/2642939 Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Share Icon Share Twitter LinkedIn Tools Icon Tools Get Permissions Cite Icon Cite Search Site Citation David Feeny; Some Comments on Thai Development Planning. Far Eastern Survey 22 February 1943; 12 (4): 317–326. doi: https://doi.org/10.2307/2642939 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAsian Survey Search This content is only available via PDF. Copyright 1972 Regents of the University of California Article PDF first page preview Close Modal You do not currently have access to this content.