The impact of central bank liquidity support on banks’ sovereign exposures

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.

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Determinants of non-cash payments in the Eurozone: Culture matters

Vierteljahrshefte zur Wirtschaftsforschung ◽

10.3790/vjh.89.4.29 ◽

2020 ◽

Vol 89 (4) ◽

pp. 29-38

Author(s):

Mechthild Schrooten ◽

Armin Varmaz

Keyword(s):

Central Bank ◽

European Central Bank ◽

Cultural Factors ◽

Uncertainty Avoidance ◽

Cultural Issues ◽

European Central ◽

Cash Payment ◽

The Difference ◽

Basic Hypothesis ◽

The Impact

Summary: Retail shops incentive contactless transactions during the current COVID-19 pandemic. Customers are asked to pay cashless to prevent contagion. Traditionally, there are large differences in the extent and acceptance of non-cash payments among nations. This paper analyzes empirically the determinants of the payment behavior in the member states of the Eurozone asking how to explain these traditional differences in non-cash payment preferences. Our basic hypothesis is that culture makes the difference across nations matter. The paper adds to the existing literature not only by focusing on the determinants of preferences for non-cash payments from a macroeconomic perspective but also by analyzing cultural factors. The payment data is gathered with the European Central Bank (ECB) and Eurostat. We examine the impact of culture on payment preferences by the means of the Hofstede indicators. Our empirical results show the importance of cultural issues to understand the acceptance of non-cash payments. In particular, the results suggest that a higher degree of uncertainty avoidance goes in line with more non-cash payments. Zusammenfassung: Im Zuge der Corona-Pandemie hat der Einzelhandel den Einsatz von non-cash Einzelhandel vorangetrieben. Um eine Covid-Ansteckung zu verhindern, werden Kund*innen gebeten bargeldlos zu zahlen. Tatsächlich es gibt zwischen einzelnen Volkswirtschaften große Unterschiede in der Verwendung von Bargeld und bargeldlosen Zahlungen. Im Beitrag wird empirisch der Frage nachgegangen, welche Faktoren hinter diesen Unterschieden stehen. Die zentrale Hypothese ist, dass Kultur eine große Rolle spielt. Dieses Paper analysiert auf der Grundlage der vorhandenen empirischen Literatur den Einfluss kultureller Faktoren auf den Einsatz von bargeldlosen Zahlungen. Dazu werden nicht nur makroökonomische Daten von der Europäischen Zentralbank und Eurostat, sondern auch die Hofstede Indikatoren herangezogen. Die Ergebnisse zeigen, dass insbesondere die kulturelle Dimension „Uncertainty Avoidance“ die nationalen Differenzen der gesellschaftlichen Akzeptanz erklären kann. Volkswirtschaften mit einer höheren „Uncertainty Avoidance“ setzen stärker auf non-cash.

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Issues on Takaful Affecting the Choice of Accounting Policies: A Case Study of Two Takaful Companies in Malaysia

International Business Research ◽

10.5539/ibr.v3n3p187 ◽

2010 ◽

Vol 3 (3) ◽

pp. 187 ◽

Cited By ~ 3

Author(s):

Hairul Azlan Annuar ◽

Nur Barizah Abu Bakar

Keyword(s):

Central Bank ◽

Advisory Council ◽

Annual Reports ◽

Case Study Method ◽

Financial Reports ◽

Descriptive Case Study ◽

Senior Official ◽

Similarities And Differences ◽

The Impact

The paper adopts a descriptive case study method to examine the impact of juristic views on the operations of two Malaysian takaful companies. In order to achieve this objective, the annual financial reports of both companies were analysed. Interviews with each company’s finance managers and with a member of the Malaysian Shariah Advisory Council were undertaken for a more in-depth coverage. Also a written correspondence with a senior official of the central bank was accomplished. Similarities and differences between the two companies were identified and it is concluded that the differences are serious enough to warrant interventions from the regulators in the form of mandatory disclosures in the annual reports.

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Macro and microeconomic analysis of the impact of the covid-19 pandemic in Chile and the projections of the central bank's

International Research Journal of Management IT and Social Sciences ◽

10.21744/irjmis.v8n3.1471 ◽

2021 ◽

Vol 8 (3) ◽

Author(s):

Rodrigo Barra Novoa

Keyword(s):

Central Bank ◽

Medium Term ◽

Social Growth ◽

Representative Data ◽

First Approximation ◽

Microeconomic Analysis ◽

The Social ◽

First Results ◽

Business Profitability ◽

The Impact

This article offers a first approximation of the impacts of the COVID-19 pandemic on the Chilean macro and microeconomic environment, using representative data from the latest formal surveys in the country. Here, the number of active firms plummeted in part due to the social crisis that began on October 18, 2019, and losses were felt in most industries due to the pandemic crisis that continues to generate job losses and low business profitability. These first results have implications for central bank policies and can predict medium and medium-term projections, especially for the country's economic and social growth.

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Efektivitas Kredibilitas Bank Sentral terhadap Inflasi bagi Produsen dan Konsumen di Indonesia

Jurnal Ekonomi dan Pembangunan Indonesia ◽

10.21002/jepi.v20i2.1219 ◽

2020 ◽

Vol 20 (2) ◽

pp. 174-196

Author(s):

Rakhmat Prabowo ◽

Mohamad Ikhsan

Keyword(s):

Central Bank ◽

Method Of Moments ◽

Price Index ◽

Generalized Method Of Moments ◽

Wholesale Price ◽

Producer Price ◽

Core Inflation ◽

Wholesale Price Index ◽

The Impact ◽

Central Bank Credibility

This study is intended to explain the impact of central bank credibility on inflation in Indonesia at the producer and consumer level. In this study, Central Bank Credibility is measured using an index with values between 0 (zero credibility) and 1 (perfect credibility). Generalized Method of Moments (GMM) method is used to analyze the impact of central bank credibility on inflation. Based on the results, central bank credibility can reduce inflation on both producer and consumer price. Central bank credibility is more sensitive towards producer price index compared to Gross Domestic Product (GDP) deflator and wholesale price index while at the consumer level, central bank credibility is more sensitive towards core inflation compared to headline inflation. -------------------------------------- Penelitian ini menjelaskan dampak kredibilitas Bank Sentral terhadap inflasi di Indonesia. Dampak kredibilitas Bank Sentral dianalisis pada tingkat produsen maupun konsumen. Untuk mengukur kredibilitas Bank Sentral, penelitian ini menggunakan indeks kredibilitas bernilai 0 (zero credibility) hingga 1 (perfect credibility). Metode Generalized Method of Moments (GMM) digunakan untuk menganalisis dampak kredibilitas Bank Sentral terhadap inflasi. Berdasarkan hasil empiris, kredibilitas Bank Sentral cenderung lebih memengaruhi inflasi pada Indeks Harga Produsen (IHP) dibandingkan Indeks Harga Perdagangan Besar (IHPB) dan deflator Produk Domestik Bruto (PDB). Kredibilitas Bank Sentral lebih memengaruhi inflasi inti dibandingkan dengan inflasi umum. Dari hasil empiris diketahui bahwa kredibilitas Bank Sentral lebih memengaruhi inflasi pada sisi produsen dibandingkan konsumen.

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Combating money laundering and terrorism financing instructions in Jordan

Banks and Bank Systems ◽

10.21511/bbs.13(3).2018.08 ◽

2018 ◽

Vol 13 (3) ◽

pp. 81-94

Author(s):

Walid Muhammad Masadeh ◽

Abdullah Tayel Al Hassan

Keyword(s):

Central Bank ◽

Money Laundering ◽

Practical Application ◽

Related Data ◽

Cooperation Level ◽

Terrorism Financing ◽

Financing Of Terrorism ◽

High Level ◽

The Impact ◽

Combat Money Laundering

This study aims to identify the extent of the response of operating banks in Jordan to the anti-money laundering and terrorism financing instructions set by the Central Bank of Jordan, and to enumerate the effectiveness of these sets of laws, the echelon of cooperation with the relevant government agencies and the impact of contiguous political and security conditions on the anti-money laundering and financing of terrorism. To attain the objectives of this study and to test its hypotheses, a descriptive analytical method was followed based on related data of the Central Bank instructions and the engaged procedures by operating banks to combat money laundering and financing of terrorism. Therefore, a questionnaire was designed and distributed to the managers of anti-money laundering departments in operating banks in Jordan. The study shows various outcomes, the most important is the high responding of operating banks in Jordan to the instructions of the anti-money laundering and terrorism financing issued by the Central Bank of Jordan. The existence of practical application of money laundering and terrorism financing instructions fights against money laundering and terrorism financing in banks in Jordan at a soaring level. In addition to the functional cooperation by the competent governmental authorities in the fight against money laundering and terrorism financing, this study introduces a set of recommendations to reinforce the cooperation level for every related party to achieve a high level of cooperation in the field of the anti-money laundering and financing terrorism.

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THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

НОВИ ЕКОНОМИСТ ◽

10.7251/noe1824008m ◽

2019 ◽

Vol 12 (24) ◽

Author(s):

Goran Mitrović ◽

Živko Erceg

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Bosnia And Herzegovina ◽

Banking Sector ◽

Banking System ◽

Policy Instruments ◽

Foreign Banks ◽

Dayton Agreement ◽

The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

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Troika's Portuguese Ministry of Justice Experiment: Dissipation of Doubts about Success, Continuation and Confirmation of Positive Results

Revista Pensamiento Americano ◽

10.21803/pensam.v12i24.309 ◽

2019 ◽

Vol 12 (24) ◽

pp. 40-53

Author(s):

Pedro Miguel Alves Ribeiro Correia ◽

◽

Susana Antas Videira ◽

Ireneu de Oliveira Mendes ◽

◽

...

Keyword(s):

Quantitative Analysis ◽

Empirical Study ◽

Central Bank ◽

European Commission ◽

International Monetary Fund ◽

European Central Bank ◽

European Central ◽

The Impact ◽

Positive Effect ◽

Positive Results

This article is the continuation of a series of studies on the impact of the measures implemented by the Portuguese Ministry of Justice. This research addresses the results obtained in the civil enforcement actions arising from objectives included in the Memorandum of Understanding (MoU) signed between Portugal and the so-called Troika (International Monetary Fund / European Commission / European Central Bank). The empirical study was extended to cover the quantitative analysis of the results achieved not only during the Troika period but also during the post-Troika period. The results show and confirm a continued positive effect on the level of civil enforcement actions in the period analyzed.

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Digital Ruble As an Element of the Digitalization of the Economy

Scientific Research and Development Economics ◽

10.12737/2587-9111-2021-9-3-22-28 ◽

2021 ◽

pp. 22-28

Author(s):

E. Myasnikova ◽

L. Voskresenskaya

Keyword(s):

Comparative Analysis ◽

Central Bank ◽

Commercial Banks ◽

Central Banks ◽

Digital Currency ◽

Expert Assessments ◽

Potential Risks ◽

Excessive Load ◽

Model C ◽

The Impact

The article is devoted to the discussion of the prospect of issuing in Russia the digital currency of the Central Bank - the digital ruble. The properties and characteristics of the digital ruble, models of the functioning of the digital currency are considered. The place of the Central Bank in the process of functioning of the platform for the production of digital rudders shown. The main stages of development and implementation of the digital ruble are presented. Expert assessments of the possibilities and consequences of the introduction of the digital ruble are discussed. The impact of the digital ruble of the Central Bank on the financial system and the potential risks of introducing a digital currency are assessed. A comparative analysis of technologies for creating a digital ruble platform been carried out. The strategies of the central banks of various countries in creating models and mechanisms for issuing digital currencies into circulation are considered. Conclusions are made about the prospects for the introduction of the digital ruble in Russia. It noted that the problem of choosing the organization of the circulation of digital currency remains unresolved. Model C creates an excessive load of settlements on the Central Bank; Model D distributes the settlement load among commercial banks, which greatly increases the risks of clients – legal entities and individuals.

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Study of Increasing Adoption Trends of Digital Banking and FinTech Products in Indian Payment Systems and Improvement in Customer Services

Collaborative Convergence and Virtual Teamwork for Organizational Transformation ◽

10.4018/978-1-7998-4891-2.ch012 ◽

2021 ◽

pp. 229-255

Author(s):

Narinder Kumar Bhasin ◽

Anupama Rajesh

Keyword(s):

Customer Satisfaction ◽

Central Bank ◽

Banking System ◽

Government Agencies ◽

Payment Systems ◽

Online Payment ◽

Customer Services ◽

The Government ◽

Digital Payments ◽

The Impact

The objective of massive adaptation of digital payments by the banks with the support of the central bank of any country along with their government agencies is to improve customer services and satisfaction in the online payment systems in place of cashless and paperless payment systems. There are very few researches that have focused to measure the higher customer satisfaction based on factors like trust, risk-free, secure, transparent, accountability of banks, fintech, regulator, and payment system operators. This chapter analyzes the impact of digital banking and fintech in the Indian banking system, initiatives taken by RBI, NPCI, and the government to build the strong trust of customers in online payment systems to ensure improvement in customer services with higher customer satisfaction.

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