The banking sector, economic growth and European integration

2008 ◽  
Vol 35 (6) ◽  
pp. 512-527 ◽  
Author(s):  
Cândida Ferreira
Keyword(s):  
Economic Growth ◽  
European Integration ◽  
Banking Sector

scholarly journals Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Philip Kofi Adom ◽  
Franklin Amuakwa-Mensah ◽  
Salome Amuakwa-Mensah
Keyword(s):  
Economic Growth ◽  
Energy Efficiency ◽  
Banking Sector ◽  
Developing Economies ◽  
Generalized Method Of Moments ◽  
Energy Utilization ◽  
Sub Saharan Africa ◽  
Political Regimes ◽  
Growth Strategies ◽  
Bank Profitability

Abstract The United Nations Sustainable Development Goal 7 emphasizes the need for economies around the world to double their efforts in energy efficiency improvements. This is because improvements in energy efficiency can trigger economic growth and considered as one of the ‘green’ growth strategies due to its carbon free content. To this end, some empirical studies have investigated the nexus between economic growth and energy efficiency, but the effects of the latter on financial indicators have not been sufficiently studied in the literature, at least in developing economies like Africa. This study examines the effect of energy efficiency improvements on commercial bank profitability under different political regimes (i.e., autocratic and democratic political regimes); something previous literature had neglected. The study uses panel data, consisting of 43 African countries and the simultaneous System Generalized Method of Moments. We found that energy efficiency improvement is more likely to induce higher bank profitability in political institutions with the characteristics of centralization of power compared with those with decentralization of power. Furthermore, for the banking sector, the findings suggest that energy utilization behavior of clients should be included in the loan or credit valuation process. For the government, the agenda of energy efficiency should be aggressively pursued while taking cognizance of creating a political environment that weans itself from a ‘grandfathering’ behavior.

China’s shadow banking sector: beneficial or harmful to economic growth?

2015 ◽  
Vol 7 (4) ◽  
pp. 421-445 ◽  
Author(s):  
James R. Barth ◽  
Tong Li ◽  
Wen Shi ◽  
Pei Xu
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Commercial Banking ◽  
Global Perspective ◽  
Shadow Banking ◽  
Content Type ◽  
Wide Range ◽  
Recent Developments ◽  
Major Factors ◽  
Made In

Purpose – The purpose of this paper is to examine recent developments pertaining to China’s shadow banking sector. Shadow banking has the potential not only to be a beneficial contributor to continued economic growth, but also to contribute to systematic instability if not properly monitored and regulated. An assessment is made in this paper as to whether shadow banking is beneficial or harmful to China’s economic growth. Design/methodology/approach – The authors start with providing an overview of shadow banking from a global perspective, with information on its recent growth and importance in selected countries. The authors then focus directly on China’s shadow banking sector, with information on the various entities and activities that comprise the sector. Specifically, the authors examine the interconnections between shadow banking and regular banking in China and the growth in shadow banking to overall economic growth, the growth in the money supply and the growth in commercial bank assets. Findings – Despite the wide range in the estimates, the trend in the size of shadow banking in China has been upward over the examined period. There are significant interconnections between the shadow banking sector and the commercial banking sector. Low deposit rate and high reserve requirement ratios have been the major factors driving its growth. Shadow banking has been a contributor, along with money growth, to economic growth. Practical implications – The authors argue that shadow banking may prove useful by diversifying China’s financial sector and providing greater investments and savings opportunities to consumers and businesses throughout the country, if the risks of shadow banking are adequately monitored and controlled. Originality/value – To the authors’ knowledge, this paper is among the few to systematically evaluate the influence of shadow banking on China’s economic growth.

scholarly journals Banking Sector Development, Inflation and Economic Growth in Asian Countries: A Panel Causality and Co-Integration Approach

2018 ◽  
Vol 8 (4) ◽  
pp. 384
Author(s):  
Muhammad Imran Nazir ◽  
Rehana Tabassam ◽  
Ifran Khan ◽  
Muhammad Rizwan Nazir
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Vital Role ◽  
Least Square ◽  
Policy Implications ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test

This study investigates the causal relationship between banking sector development, inflation, and economic growth for six Asian countries (Bangladesh, China, India, Malaysia, Pakistan and Sri Lanka) over the period of 1970-2016. Using a Pedroni panel, Kao co-integration test, Panel Granger causality-based Error Correction Model, Dynamic ordinary least square (DOLS), and Fully modified ordinary least square (FMOLS), this study finds that the development of the banking sector generally has a positive relationship with economic growth in the long-run. This results show that in the long-run, monetary policy play a vital role in the economic growth. This study also confirmed the response causality between the indicators of banking sector development and economic growth. Based on the empirical findings, this research provides important policy implications to the banking sector and economic supervisory bodies in order to achieve the long run economic growth.

scholarly journals WORLD EXPERIENCE: COMMERCIAL BANK CREDIT AND ECONOMIC GROWTH RELATIONSHIP

2020 ◽  
pp. 6-19
Author(s):  
Davit Aslanishvili
Keyword(s):  
Economic Growth ◽  
Large Scale ◽  
Banking Sector ◽  
Point Of View ◽  
Bank Credit ◽  
Main Function ◽  
Economic Point ◽  
Market Factors ◽  
Credit Portfolio ◽  
The Impact

This research focuses on the problem of large scale disproportion of success in the development of the banking sector and mostly unsuccessful development of the real sector of the economy. It should be noted that this disproportion is a subject of consideration in contemporary economic literature and our research is an attempt to broaden the issue and share ideas inside the international scientific circles. The main problem in the research is the impact of the banking sector's credit portfolio and the functioning of credit markets on the economic growth of the country. In this regard, it is very important to identify, study the macroeconomic stabilization and accelerated economic growth of the country and analyse the impact mechanisms of the credit market factors on economic growth. The conclusion that combines many of the research and opinions given in the survey can be as follows: From the economic point of view, the main function of banks is to increase the financing/lending of funds as the core point to increase investments in the economy. Thus, the development of the country in economic terms depends on the increase of investments. At present, it is in the hands of the banking sector whether to lead us to economic immobility or to accelerate the country's economic development through efficient allocation of resources.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals SWOT-ANALYSIS AS A TOOL FOR DETERMINING A SMALL ENTREPRENEURIAL STRUCTURE DEVELOPMENT STRATEGY

2021 ◽  
pp. 59-66
Author(s):  
Khrystyna Danylkiv ◽  
Oksana Sadura
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Small Businesses ◽  
Matrix Method ◽  
Banking Sector ◽  
Swot Analysis ◽  
External Environment ◽  
The State ◽  
Retail Trade ◽  
Strategic Analysis

Purpose. The aim of the article is strategic analysis of the state of development of LLC “GALYCHMED”, identification of positive and negative trends and changes, identification, and awareness of the factors that cause inhibition of its development, search for priority ways and directions of development of the analysed enterprise. Methodology of research. To achieve this goal, a toolkit of research methods was used, namely: economic-statistical and calculation-analytical – to study the opportunities and threats to the external environment of the operation of LLC “GALYCHMED”, the strengths and weaknesses of the studied enterprise; matrix method of strategic analysis (SWOT-analysis) – to comprehensively reflect the results of the analysis of the external and internal environment of LLC “GALYCHMED”; problem-oriented – to substantiate the strategic directions and the potential scenario of solving the issues of development of the analysed enterprise; tabular – for visual display and effective perception of statistical data; induction and deduction – for concluding; logical – for the consistent generalization of theoretical and practical provisions of scientific research. Findings. SWOT analysis was performed according to the stages of filling in the SWOT matrix, processing (summarizing) results, and analysis of results. It is noted that the main purpose of SWOT analysis as a matrix method is to obtain reliable data on the company’s capabilities and threats to its promotion in the market of goods and services, so before SWOT analysis are the following tasks: identifying marketing opportunities that meet the company’s resources; identification of marketing threats and development of measures to neutralize their impact; identifying the strengths of the enterprise and comparing them with market opportunities; identification of enterprise weaknesses and development of strategic directions for overcoming them; identification of competitive advantages of the enterprise and formation of its strategic priorities. It is established that the influence of the macroenvironment is negative and the mesoenvironment is positive. The most important factors of positive influence are the attitude of the buyer to the product, the population, the attitude of people to work, and so on. Among the most negative factors are inflation, the social situation in the country and the world (COVID-19), financial crisis, slowing economic growth, the purchasing power of the population, industry competitors, potential competitors, and more. The following advantages of the analysed enterprise are determined: the goods sold by the enterprise; quality of services; state of the sales system; market share; availability of credit; enterprise assets; net profit. It is proved that the unstable financial market due to the pandemic, the devaluation of the national currency, the situation in the banking sector, losses in the area of environmental protection in eastern Ukraine, as well as other factors negatively affected the trading activities of LLC “GALYCHMED”. In most retailers, costs have risen and profits have fallen, prompting more conservative pricing and spending cuts. Originality. The application of SWOT analysis has been further developed, which allows to selection measures to ensure the economic growth of the enterprise, systematize problem situations, identify and use new potentials faster than competitors, avoid dangers, make informed decisions about small business development, and prevent irrational use of financial assets. This technique is an effective, affordable, cheap way to assess the state of the problem and management situation in small businesses. Practical value. The results of the SWOT analysis are recommended for use by the researched enterprise (LLC “GALYCHMED”) and other retail enterprises to determine the development strategy, for market analysis and study of competitiveness, but each time it must be adapted to the specifics of the enterprise. Key words: SWOT analysis, strengths, and weaknesses of the enterprise, opportunities and threats, external environment, economic environment, financial and economic situation, retail trade, strategic planning, demography, political environment.

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