Bank Rate Research Articles

Financial liberalization and house prices: Evidence from China

I investigate whether financial liberalization can affect house prices. I exploit the 2008 US financial crisis as an exogenous shock that negatively affected foreign banks’ operations in China. Using cross-sectional variation in foreign banks’ establishment and asset value, I document that cities with a higher level of financial openness have more volatile house price movements. I also show that the drops in house price growth rates in 2008 were larger for cities with higher withdrawal or exit rates of overseas banks. I exclude alternative explanations for the negative treatment effect, such as shocks to international trade and local economic conditions in 2008. The evidence suggests a credit supply channel. Further analyses show that the negative effect of financial liberalization on the house price growth rate is more pronounced for more geographically constrained cities.

SP11.2 Tackling the post pandemic NHS waiting lists- Mission impossible?

Abstract Aim The office of national statistics (ONS) has estimated that around 5.8 million people are currently, waiting for treatment and the government has allocated £ 1.5 billion to tackle the backlog. The study aimed to analyze the likely effectiveness of these measures. Methods We looked at various government and NHS resources pertaining to the recovery plan. Results The actual numbers currently waiting to be treated is predicted to be closer to 13 million. Working within the current timeframes it will take up to 12 years to clear this backlog. Among the surgical specialities the numbers waiting are Orthopaedics- 700,547, Ophthalmology - 595,824, ENT - 459,087, Gynaecology - 438,703, General Surgery - 409,823. The £1.5 billion for elective recovery, includes £500 million capital funding (£250 million for increasing operating theatre capacity and hospital productivity and £250 million for an elective recovery technology fund). The private setup has been utilized in fits and starts to ensure there is no undue delay for cancer surgeries. Pop up centers and surgical hubs are to speed up the diagnosis and treatments for things like day case cataract surgeries. Conclusion Without disruptive thinking, clearing the backlog is mission impossible. The existing capacity has to be utilized beyond the conventional working hours and Hospital at weekend has to designated for pandemic backlog. This will give 104 additional full time days in each of the NHS Hospitals and paying the staff a “new pandemic bank rate” may help get the job done in 4–5 years.

Evaluation Factors That Determine the Dividend Payout Ratio of Commercial Banks in Nigeria

The study examined the evaluation of factors that determine the dividend payout rate of commercial banks in Nigeria. The research adopted ex post facto research covering the period 2009 to 2018. Secondary data were extracted from annual reports and accounts of selected banks listed on the Stock Exchange (NSE). The data were analyzed using multiple regression techniques. Findings depict that earnings per share have a positive and nonsignificant effect on the dividend payout ratio of commercial banks in Nigeria. Retained earnings on the other hand have a negative and significant effect on the dividend payout ratio of commercial banks in Nigeria. Net profit margin and debt-equity ratio have a negative and insignificant effect on the dividend payout ratio of commercial banks in Nigeria. However, bank age has a positive and significant effect on the dividend payout ratio of commercial banks in Nigeria. The adjusted R-squared revealed that 21% of the variations in dividend payout ratio could be explained by the explanatory variables while 79% could be explained by other factors that are capable of influencing dividend payout ratio that was not studied. The implication of the findings is that only retained earnings and bank age can be used in predicting movement in the dividend payout ratio of banks in Nigeria.

Investigating the Impact of Changing the Usage Type of Existing Structure Using BIM

Many real estate owners change the building in terms of the type of usage in response to changes in economic conditions and the requirements of the surrounding environment to get the best potential financial return. To investigate the possibilities of changing the real estate's usage, the owners of these existing structures turned to feasibility study experts for assistance in making the optimum alternatives. So, they need an integrated model between VE and BIM, especially applicable to an existing structure, to determine the optimum usage type for the existing structure. Value Engineering (VE) and Building Information Modeling (BIM) must be connected to profit from both outputs simultaneously. Previous studies only investigated the VE alternatives during the design phase; when they decided to reduce project costs by using construction materials alternatives, they ignored existing structure alternatives significantly when changing the usage type. This study attempts to provide an integrated model between VE and BIM that can be applied to the existing structure to assist in determining the best alternative in terms of the type of usage for such existing structures by conducting BIM methodology such as a feasibility study, including BIM software such as Revit and Primavera. A feasibility study that contains the bank rate of interest. As a result, the maximum financial return is obtained based on predetermined criteria and in compliance with decision-making requirements. Doi: 10.28991/CEJ-2022-08-08-06 Full Text: PDF

Analisis Tingkat Kesehatan Bank dengan Menggunakan Metode Risk-Based Bank Rating (RBBR) pada PT. Bank Mega Syariah Periode Tahun 2017-2021

This study analyzes the health level of banks using the Risk-Based Bank Rating (RBBR) method. The secondary data used in this study was taken from the Financial Statements of PT Bank Mega Syariah on the official website of PT Bank Mega Syariah for the period 2017-2021. The Risk-Based Bank Rating (RBBR) method based on BI Circular No. 13/24/DPNP uses Risk Profile, Earning and Capital assessments. The method used in this research is descriptive research method with a quantitative approach. The results show that the Risk Profile component calculated using the NPF ratio in 2017 was 2.75 percent, in 2018 it was 1.96 percent, in 2019 it was 1.49 percent, in 2020 it was 1.38 percent and in 2021. by 0.97 percent. In addition, the FDR ratio in 2017 was 91.05 percent, in 2018 it was 90.88 percent, in 2019 it was 94.53 percent, in 2020 it was 63.94 percent, and in 2021 it was 62.84 percent. In the Earning component calculated using the ROA ratio in 2017 it was 1.56 percent, in 2018 it was 0.93 percent, in 2019 it was 0.89 percent, in 2020 it was 1.74 percent and in 2021 it was 4.08 percent. In addition, the NIM ratio in 2017 was 6.03 percent, in 2018 it was 5.52 percent, in 2019 it was 5.36 percent, in 2020 it was 4.97 percent and in 2021 it was 4.35 percent. For the capital component calculated using the CAR ratio in 2017 it was 22.19 percent, in 2018 it was 20.54 percent, in 2019 it was 19.96 percent, in 2020 it was 24.15 percent and in 2021 it was 25.59 percent. From the results of the study, it is known that the ratio of ROA shows poor results.

Penilaian Tingkat Kesehatan Bank dengan Metode Risk Based Bank Rating pada PT. Bank Negara Indonesia Tbk Periode 2016-2020

This study raises the issue of how to assess bank health using the Risk Based Bank Rating method with ratios of NPL, LDR, GCG, ROA, NIM and CAR at PT. Bank Negara Indonesia Tbk 2016-2020. The purpose of this study was to determine the soundness of Bank Negara Indonesia Tbk with the Risk Based Bank Rating method by looking at the conditions based on the annual financial statements. With the results of the NPL ratio having a value of less than 2%, which means that lending is more than non-performing loans, the LDR ratio with the criteria of 85%-100% which means it is quite healthy to fulfill its obligations, the GCG ratio is in level 2 condition, which is generally good, ROA ratio that asset management is in good condition, the NIM ratio is above 3%, which means a high level of income and a CAR ratio is above 12% in a very healthy condition, which means that capital is carried out very effectively.

Evaluation of The Nexus Between Financial Inclusion and Economic Growth in Nigeria (1980-2020)

The focus of financial inclusion is the easy access of financial services to the populace to tackle poverty, improve living standard and address the general welfare of the people for the purpose of enhancing economic growth. This paper examines how financial inclusion relates with economic growth in Nigeria. Data was obtained from the bulletins of the Central Bank of Nigeria covering the period 1981 to 2020. Statistical analysis involves the use of descriptive statistics, Johansen Co-Integration Test, Phillips-Perron Unit Root Test, Pairwise Granger Causality and Error Correction Model. To estimate the hypotheses formulated in alignment with the set objectives., the Error Correction Model was used. Economic growth, the dependent variable, was proxied by Gross Domestic Product, while total bank deposit and total credit disbursement constitute what was used to proxy the independent variable financial inclusion. The Error Correction Model result shows that there was a positive and statistically significant relationship between total bank deposit and gross domestic product. Total credit disbursement has a negative and an insignificant relationship with gross domestic product. The result from the study validates the finance led growth hypothesis and established that finance is one of the factors that causes economic growth in Nigeria. The consequence of this findings is that policy makers should pay more attention on long run financial policies that can enhance effectiveness of the financial sector in promoting growth. In addition, the CBN should focus on reduction of interest rate of banks in other to increase financial intermediation.

Mapping the Sustainable Human-Resource Challenges in Southeast Asia’s FinTech Sector

The significance of human resources (HRs) has increased with the increasing awareness of sustainability issues and corporate social responsibility. However, the rapidly emerging financial technology (FinTech) sector still presents an HR challenge. Southeast Asia, which accounts for the highest adoption rate of mobile banking, has set new records regarding the number of transactions, as well as funding amount, in recent years. Moreover, borderless financial cooperation, coupled with in-demand tech talents, will rapidly boost the development of the region. Thus, this study explored the new opportunities as well as challenges of a new business model, FinTech, in Southeast Asia’s banking and enterprise sector in the post-COVID-19 era. It also examined how organizations can achieve sustainable development via the interaction of the new operating model with existing ones by developing relevant strategies in the context of the “new normal” working condition. By reviewing the literature on HR management (HRM), we proposed how banking and FinTech companies could supply tech talent with the relevant experience or engage in training projects before recruiting. Additionally, since organizations desire sustainability-minded employees, they offer flexible working arrangements and well-established reward policies that can create remote work performance and retention rates. Being committed to upskilling and reskilling global talent by offering talent mobility opportunities across the organization, as well as by fully embracing the creation of value for cross-cultural talent, companies can support their employees’ long-term career goals and maintain competitive strength. Finally, organizations must focus more on flexible adjustments and cross-domain communication for global talent. Forming strategic alliances with FinTech companies would be an alternative conduit that can ensure that regional laws comply with the local culture and national law, for bias and conflict reduction.

Financial Performance Measurement Analysis of Shariah Commercial Banks in Indonesia Using Risk Based Bank Rating (RBBR) and Shariah Conformity and Profitability (SCNP) Methods

This research aims to determine the level of performance of Islamic Commercial Banks in Indonesia using the Risk Based Bank Rating (RBRR) and Shariahh Conformity and Profitability (SCnP) for the 2017-2019 period. The object of this research is a BUMN Shariah Commercial Bank. The technique used for this research is purposive sampling using descriptive quantitative method. This study describes the performance of Islamic Commercial Banks through two methods, namely the Risk-Based Bank Rating (RBBR) method which is seen from 4 aspects, namely Risk Profile, Good Corporate Governance, Earnings, and Capital. The second method is Shariahh Conformity and Profitability (SCnP) which is seen from the Shariahh Conformity variable with indicators of Islamic Investment Ratio, Islamic Income Ratio, and Profit-Sharing Ratio and Profitability variable with indicators of Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin Ratio. The results showed that dwith the Risk-Based Bank Rating (RBBR) method, Islamic Commercial Banks are in a “Healthy” or “Good” condition. While the analysis using the Shariahh Conformity and Profitability (SCnP) method, shows that Islamic Commercial Banks are spread in three quadrants, namely URQ, LRQ, and ULQ.

The economic climate for businesses and the continued existence of industrial companies in Nigeria

The primary goal of this study was to determine if and how the Nigerian business climate affects the long-term viability of manufacturing companies there. A theoretical or qualitative method was used to compile the study's findings. The study found that high rates of unemployment, interest, the exchange rate, and inflation all have negative and substantial effects on the long-term viability of Nigeria's manufacturing sector. Manufacturing firms in Nigeria should be encouraged by the government to increase the number of available jobs for the country's recent graduate population by providing financial incentives in the form of grants and realistic loan facilities from the central bank of Nigeria (CBN) and the bank of industry (BOI). Scan the external economic environment for the country's strengths and weaknesses and ensure the survival of manufacturing enterprises by having the government aid lower and regulate the quick acceleration of interest rates of commercial banks through the proper financial authorities.

THE IMPACT OF BANK RATE AND EXCHANGE RATE ON STOCK MARKET PERFORMANCE OF PAKISTAN: A CO-INTEGRATION ANAYSIS

The aim of this study is to highlight the impact of interest rate and exchange rate on stock market performance of Pakistan. Time series data for 20 years (2001-2021) collected from world development indicator. Multiple linear regression model is applied. For the analysis of data Ordinary Least Square, tests like multi-collinearity, Augmented Dickey Fuller test, serial correlation test, co-integration techniques were used to locate out the long as well as short run and significant relationship. The results show that the interest rate has negatively while the exchange rate positively and significantly affected the stock market performance. The study has a good scope for policy implication and suggest recommendation for the government to handle the bank rate and exchange rate to regulate the capital market of Pakistan to boost economic activity and accelerate GDP growth.

Monetary Policy and Financial Performance of Commercial Banks in Kenya

This study has been done to address the research gaps in the effect of monetary policy of commercial bank’s financial performance. The key objectives of the study were to establish the following; the effect of changes in central bank rate on financial performance of commercial banks in Kenya, the effect of reserve ratio requirement on financial performance of commercial banks in Kenya and, the effect of repo rate on financial performance of commercial banks in Kenya. The study was carried out covering a five-year time frame period from 2016 to 2020. The independent variables of the study involved: cash reserve ratio, Central bank rate, and the repo rate. Return on equity was used as the dependent variable. The study used descriptive longitudinal research design. The total population consisted of all the commercial banks, which is forty-two in number, licensed to operate in Kenya by the Central Bank of Kenya. The study employed various research tests; Durbin-Watson, quantile-quantile plot and normality test were applied in research finding analysis. The study found out that a negative relationship exists between both Central Bank rate and cash reserve ratio requirement and return on equity (financial performance) of commercial banks in Kenya. The research findings also showed that a positive relationship exists between repo rate and the return on equity (financial performance) of commercial banks in Kenya. In Conclusion, the study concluded that monetary policy affects profitability and financial performance of commercial banks in Kenya. The study recommends that, for central bank to stimulate economic growth, central Bank rate needed to be monitored and maintained low.

Evaluation of Efficient Ventilation and Natural Lighting in Hospital Wards in Ota, Ogun State, Nigeria

This study has been done to address the research gaps in the effect of monetary policy of commercial bank’s financial performance. The key objectives of the study were to establish the following; the effect of changes in central bank rate on financial performance of commercial banks in Kenya, the effect of reserve ratio requirement on financial performance of commercial banks in Kenya and, the effect of repo rate on financial performance of commercial banks in Kenya. The study was carried out covering a five-year time frame period from 2016 to 2020. The independent variables of the study involved: cash reserve ratio, Central bank rate, and the repo rate. Return on equity was used as the dependent variable. The study used descriptive longitudinal research design. The total population consisted of all the commercial banks, which is forty-two in number, licensed to operate in Kenya by the Central Bank of Kenya. The study employed various research tests; Durbin-Watson, quantile-quantile plot and normality test were applied in research finding analysis. The study found out that a negative relationship exists between both Central Bank rate and cash reserve ratio requirement and return on equity (financial performance) of commercial banks in Kenya. The research findings also showed that a positive relationship exists between repo rate and the return on equity (financial performance) of commercial banks in Kenya. In Conclusion, the study concluded that monetary policy affects profitability and financial performance of commercial banks in Kenya. The study recommends that, for central bank to stimulate economic growth, central Bank rate needed to be monitored and maintained low.

Features of the monetary policy of central banks to combat high inflation

The article describes the measures taken by the central banks of the world's largest economies to combat high inflation. The authors give a definition of what exactly is considered high inflation, analyze the timeliness and effectiveness of taking anti-inflationary measures, and also answer the question of the need for the monetary authorities to react to inflation, which does not have an obvious monetary nature.
 In the article the particular attention is paid to the difference between the anti-inflationary policy of central banks in developed and emerging markets, as well as to the issues of coordination between the actions of the central bank and the government in the field of anti-inflationary policy. The authors point out the importance of increasing the efficiency of the transmission mechanism through the development of various segments of the financial market, including the derivatives market.
 As a result of the study, a hypothesis is put forward that there is a direct relationship between the development of the financial market, especially the capital market, and the costs of fighting inflation. Countries with less developed capital markets and smaller gold and foreign exchange reserves are forced to use the key rate of central banks to fight inflation, paying with their economic growth potential for the opportunity to have low inflation.
 The article also makes a fundamental conclusion that the risk of inflation has acquired global features, however has not yet affected all countries, bypassing those markets that traditionally struggled with the deflation factor, and their central banks had negative rates. As well, the article pays attention to the dependence of the foreign exchange rate on the difference between the levels of interest rates, and makes assumptions about the possibility of manipulating the foreign exchange rate through delaying anti-inflationary measures in order to stimulate exports.

Data Mining and Economic Application in the Age of Financial Big Data: A Case Study of Shadow Banking and Interest Rate Liberalization in China

With the booming of big data in finance, data mining technologies, as a new method of data statistics, have made superior economic applications available to researchers. Based on the relationship between shadow banking and interest rate liberalization, this paper intended to analyze the bidirectional relationship between shadow banking and interest rate liberalization using big data mining technologies. The relationship between data mining and the economic application of shadow banking was proven using data from 2014 to 2021. On this basis, this paper identified the bidirectional influence between shadow banking and interest rate liberalization. The findings show that shadow banking has positive contributions to the liberalization of interest rate, and the interest rate distortion resulting from interest rate control also drives the development of shadow banking. Moreover, feasible suggestions have been proposed for supervision on policies.

Analisis Tingkat Pertumbuhan Bank Syariah di Indonesia

The Islamic economy in Indonesia continues to grow rapidly. This growth cannot be separated from the role of many institutions that run with sharia principles, especially Islamic banking. This study has the purpose of analyzing the growth rate of Islamic banks in 2017-2019. The method used is Multiple Linear Regression to determine the growth of Islamic banking in Indonesia. This study uses the variables of assets, third-party funds, profit for the year, and financing. This study uses quarterly time-series data from the first quarter of 2017 to the fourth quarter of 2019 and is obtained from the Islamic Banking Statistics data of the Financial Services Authority. The results of this study, namely the variables of assets, financing, profit for the year, and third-party funds affect the growth rate of Islamic banks in Indonesia. Assets and profits for the year have a significant positive effect, while financing and third-party funds have a negative effect on the growth of Islamic banks in the 2017-2019 period. During that period, the growth of Islamic banks in Indonesia fluctuated but growth in each variable increased.

State defense order as a means of enrichment

Subject. The article discusses the threat of a conflict of interests between public finance and private capital. Objectives. I analyze the fiscal and monetary policy in relation to enterprises of the military-industrial complex. Methods. The study employs methods of statistical and graphical analysis. Results. The paper highlights the shortcomings of financial and monetary policy related to enterprises of the military-industrial complex that implement the State defense order. It provides the analysis of interrelation between the financial condition of enterprises operating in the military-industrial complex and the change in the key rate of the Central Bank of the Russian Federation and the loan interest rate. Conclusions. To prevent a conflict of interests between public finances and private capital and to reduce the threat to military-economic security, enterprises of the military-industrial complex of Russia should get loans from extra-budgetary funds.

Bank Rating Gaps as Proxies for Systemic Risk

Banks receive two types of ratings from major rating agencies: an “all-in” and a “stand-alone” rating. This paper investigates whether rating gaps between all-in ratings and stand-alone ratings could serve as a useful measure for the systemic risk of banks. Using US data from 1994 to 2007, the link between the rating gaps and a quantitative systemic risk measure, Co-independent Value at Risk (CoVar), is examined. The conclusion is that rating gaps are good proxies for systemic risk of large banks.

How Banks Were Chosen and Rated in Hungary before and during the COVID-19 Pandemic

Banks can be chosen based on multiple factors, such as location, security, and e-banking functions. The characteristics of customers such as gender and age can also affect this decision. Since the digitalization of banking sped up due to the COVID-19 pandemic, the factors that affect this decision may change as well. To assess this, a questionnaire was completed by 156 respondents, and the results were evaluated using Pearson’s correlation test. According to the results, personal visits to the banks declined after the COVID-19 pandemic started. Furthermore, the number of e-bankers rose. When choosing banks, no gender-related relationships were found based on location, while older people chose different banks than their younger counterparts. The security of internet banking functions was not associated with bank choice, while the security of the mobile banking application was. Regarding the ratings of banks, males and females did not rate banks differently, and younger people tended to be more critical in their ratings. Security, accessible location, and good customer service can lead to more positive ratings as well. The findings can be used by banks in Hungary to improve their services in order to attract customers and increase their satisfaction.

Bank Soundness Level Analysis Using Method Risk-Based Bank Rating (RBBR) at PT Bank Negara Indonesia (Persero), Tbk period 2018-2020

Banks are one of the institution holding finance _ role important in Indonesian economy . As one related industries with finance, banks are wheel mover economy national, so could said as his heart service finance. Study this aim for knowing evaluation level bank health at PT Bank Negara Indonesia (Persero), Tbk seen from factor Risk Profile, Good Corporate Governance, Earnings, and Capital period 2018-2020. Type used is study quantitative with using secondary data sourced from report finance Annual Report PT Bank Negara Indonesia (Persero), Tbk period 2018-2020. The method used in the research this is the RBBR (Risk-Based Bank Rating) method and uses NPL, LDR, GCG, ROA, NIM, and CAR variables that produce evaluation for knowing level bank health. Research results level bank health at PT Bank Negara Indonesia (Persero), Tbk the period 2018-2020 obtained results rating composite 1 (PK-1) reflecting that by general bank condition in "Very Healthy" state .