Search results for "Financial system"

The role of the financial system in the growth–inflation link: the OECD experience

2004

Abstract This paper jointly estimates the effects of financial development and inflation on growth using both cross-section and time-series dimensions of the data on inflation, growth, and some banking and stock market indicators over the period 1961–1993 for a sample of OECD countries. Overall, the results indicate, first, that the long-run costs of inflation are not explained by policies of financial repression and, second, that if inflation affects growth through its interaction with financial market conditions, this is not the only (nor the most important) channel.

Bank Stability: The Case of Nordic and Non-Nordic Banks in Latvia

2018

The banking industry is facing huge challenges due to technology-enabled innovation, to changes in customer preferences, to bank de-risking and to new regulatory initiatives. To go through all these changes, banks need to be stable. The present study contributes to the empirical literature by identifying the determinants of stability of banks in the Latvian Banking Industry. This study covers both bank-specific (endogenous) factors and macroeconomic (exogenous) factors that impact the stability of banks. The data set used in this study is the annual financial statements of Latvian banks operated in the period 2003-2016. Using multivariate regression analysis techniques, we found evidence th…

Information Flows Among the Major Stock Market Areas

2001

The relationship between the index returns of the major stock markets has been analysed in many papers. These studies usually examine lead–lag relationships between markets, without distinguishing the influencing ability and the sensitivity of each of the markets. Additionally, these studies use indices that are not directly comparable — either because of the way the indices are calculated or because of the number of companies and sectors used to construct them. This paper addresses both points. First, all the analyses have been made using homogeneous indices designed by Morgan Stanley Capital International. Secondly, the information flow has been studied by applying the model proposed by P…

Do We have a Regional Interest Rate Spread in Italy

2008

Business Models in the International Banking System—From Traditional to Innovative Banks

2018

The international banking system after the global crisis is a system different from the one before, as a result of the crisis itself and global developments (shifts in global economic power, demographic and social change, new regulations, advances in technology and new customer behaviors). This paper analyzes the developments in the banks’ business models, showing the diversity of them at the global level: from retail-funded and wholesale-funded commercial banking models to investment and digital banking business models. The study continues by presenting a performance assessment of top banks from 2008 to 2018 in terms of capital, assets and profit, using The Banker’s database. The results r…

Efficient Diversification of International Investments: The Spanish Point of View

1999

The search for the best investments in a return-risk framework has led the investors to the portfolio diversification. The domestic markets liberalisation and a increasingly financial market integration, have made the investors to exceed the national barriers in order to get the international diversification of their portfolios.

A Split in The Middle East Financial System

2017

In the Middle East, it has been proven that religious and cultural particularities can have adecisive impact on the economic environment. In this way, has developed Islamic financial system,a counterpart to the conventional one, that is based on the principles of Shari’ah. A niched systemaccording to addressability but also to the degree of geographical spreading, Islamic financialsystem increases with higher rates than the conventional one. Although the financial market in thiscase is closely related to real market. Islamic and conventional systems resilience is similar. TheMiddle East economy seems ready to host in parallel both types, certainty that is proven by theUnited Arab Emirates, …

The effect of language use on the financial performance of microfinance banks: Evidence from cross-border activities in 74 countries

2019

Abstract This multi-year study examines the relationship between financial performance and language use, observing 405 partnerships between microfinance banks and their international financial partners in 74 countries. Drawing on language research in international business, we find that microfinance banks based in English-speaking, French-speaking, and Spanish-speaking countries have higher performance. Furthermore, the linguistic distance between the home country of a microfinance bank and the home country of its international partner(s) is negatively related to its financial performance. Our large-scale study confirms the effect of language use on organization-level financial performance …

Leverage Control and Quantitative Management: The Analysis of Amplification Effect on Financial System

2021

Maintaining the stability of financial leverage is a task in macro-economic management and also a challenge to be faced. Financial amplification characteristics dominate financial leverage system with low risk of capabilities, and the efficiency of this ability has two-sides results and proposes a lot of risks, however, most researchers have not found the best ways to solve this problem. Therefore, taking positive measures to strengthen the management of the financial system leverage feature becomes very important. In this paper, authors use comparative study and data analysis to illustrate the main problems of financial system leverage, the effect of leverage amplification characteristics,…

Switching to floating exchange rates, devaluations, and stock returns in MENA countries

2012

Abstract We test for the impact of the announcements of floating and/or devaluating the exchange rate on stock returns in three MENA countries after the financial crises they experienced. We, first, use an event-study methodology to test for event-induced abnormal volatility of stock returns in Egypt, Morocco and Turkey. We, then, use three different methodologies to test for abnormal returns: a traditional approach and two approaches that control for event-induced volatility. We find clear evidence of abnormal volatility and abnormal returns due to the floating of the Egyptian and Turkish exchange rates in 2003 and 2001, respectively. In contrast, our results do not show that the devaluati…