ECB QE will boost credit growth, but not soon

2015 ◽  
Keyword(s):  
Private Sector ◽  
Asset Price ◽  
Quantitative Easing ◽  
Press Conference ◽  
Private Debt ◽  
Credit Growth ◽  
Content Type ◽  
Portfolio Rebalancing ◽  
Price Bubble ◽  
Private Credit

Subject Is quantitative easing helping credit growth? Significance Economists are questioning whether the ECB's sovereign quantitative easing (QE) programme is boosting private credit growth, one of the key objectives of QE. At his June press conference, ECB President Mario Draghi said that "the dynamics of loans to non-financial corporations remain subdued". This followed his comments in May that the private sector is still "hesitant to take on economic risk". Impacts Regardless of encouraging signals from the credit front, both real borrowing costs and private debt ratios remain high. The QE programme's goal is encouraging banks to make new loans to corporates and households. QE also aims to trigger portfolio rebalancing from bonds to equities. If non-financial companies do not issue more equities or bonds, higher bank demand will fuel an asset price bubble.

scholarly journals Banks’ Holdings of Government Securities and Credit to the Private Sector in Emerging Market and Developing Economies

2019 ◽  
Vol 19 (224) ◽  
Author(s):  
Romain Bouis
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Developing Economies ◽  
Emerging Market ◽  
Negative Relationship ◽  
Credit Growth ◽  
Financial Repression ◽  
Portfolio Rebalancing ◽  
Sector Analysis ◽  
The Government

This paper studies the relationship between banks’ holdings of domestic sovereign securities and credit growth to the private sector in emerging market and developing economies. Higher banks’ holdings of government debt are associated with a lower credit growth to the private sector and with a higher return on assets of the banking sector. Analysis suggests that the negative relationship between banks’ claims on the government and private sector credit growth mainly reflects a portfolio rebalancing of banks towards safer, more liquid public assets in stress times and provides only limited evidence of a crowding-out effect due to financial repression.

Active investment funds face rising pressure

2019 ◽  
Keyword(s):  
Asset Management ◽  
Asset Price ◽  
Equity Markets ◽  
Poor Performance ◽  
Exchange Traded Funds ◽  
Investment Funds ◽  
Content Type ◽  
Fund Managers ◽  
Price Bubble ◽  
Specific Index

Subject Passive and active fund management. Significance Active investment, actively buying and selling assets to try and outperform the market, was already under fire because of poor performance, high fees and passive funds (tracking a specific index) performing well due to the surge in global equity markets. Exacerbating this, the decision on June 2 by Neil Woodford, one of the United Kingdom's best-known fund managers, to suspend withdrawals from his flagship Equity Income Fund is triggering a scandal in UK asset management. Impacts Passive funds performing well fuels asset price bubble fears as they tend to lead to more money being directed to larger firms and sectors. Exchange Traded Funds, popular passively run vehicles, have momentum, holding almost 5.5 trillion dollars, six times as much as in 2009. The dollar may rise as geopolitical uncertainty will drive ‘safe haven’ interest but doubts over US growth and policy will cap the trend.

scholarly journals Are Real Estate Prices Evolving into an Asset Price Bubble?

2021 ◽  
Vol 15 (1) ◽  
pp. 36-48
Author(s):  
Wolfgang Kloppenburg
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Asset Price ◽  
Oecd Countries ◽  
Real Estate Market ◽  
Private Debt ◽  
Asset Price Bubbles ◽  
Price Bubbles ◽  
Price Bubble ◽  
Real Estate Prices

The development of real estate prices is of extraordinary importance for the fi nancial and economic system, as undesirable developments could endanger fi nancial stability – as seen in the fi nancial crisis of 2008 and 2009. This applies not only to speculators, but also to private households, which have to borrow to pay the purchase price. The market has been “fueled” in particular by the monetary policy of the central banks – expansion of the money supply and low interest rates. Investors are looking for investment opportunities due to the money glut, and the real estate market still promises a return. Furthermore, many people looking to build are willing to go into debt to buy a property. This demand ultimately has a driving eff ect on real estate prices. The aim of this paper is to compare and analyze the development of real estate prices in the most important OECD countries with those of Germany. A model of real estate prices is presented, which takes into account the most important indicators and provides information on when a price bubble exists. The model shows that asset price bubbles can be identified in some OECD countries. In Germany, on the other hand, there are only signs of a price bubble in a few major cities. Since private debt is low, it does not seem to be a problem across the board in Germany. A general problem remains with regard to the timely detectability of price bubbles.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

South African government’s GBV plans may disappoint

2021 ◽  
Keyword(s):  
Civil Society ◽  
Private Sector ◽  
South African ◽  
Foreign Investment ◽  
Gender Based Violence ◽  
Content Type ◽  
Management Structure ◽  
National Strategic Plan ◽  
The Government ◽  
Gender Based

Significance Although President Cyril Ramaphosa has publicly committed to increase funding to combat what he calls South Africa’s “second pandemic”, there is a lack of transparency in how the government disburses funds linked to its National Strategic Plan (NSP) on Gender-based Violence and Femicide. Impacts Civil society groups will increase pressure on the government to make expenditure on GBV programmes more transparent. A new private-sector fund to contribute to the NSP has received strong early support, but its management structure is opaque. High levels of GBV will not only have significant humanitarian and social costs but may deter much-needed foreign investment.

Leveraging business intelligence systems to enhance management control and business process performance in the public sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Z. Elbashir ◽  
Steve G. Sutton ◽  
Vicky Arnold ◽  
Philip A. Collier
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Performance Measurement ◽  
Knowledge Creation ◽  
New Technologies ◽  
Top Management ◽  
Process Performance ◽  
Content Type ◽  
The Public ◽  
Public Sector Organizations

Purpose Recent research and policy reports indicate public sector organizations struggle to leverage information technology-based performance measurement systems and fail to effectively evaluate performance beyond financial metrics. This study aims to focus on organizational factors that influence the assimilation of business intelligence (BI) systems into integrated management control systems and the corollary impact on improving business process performance within public sector organizations. Design/methodology/approach The complete Australian client list was acquired from a leading BI vendor; and the authors surveyed all public sector organizations, receiving 226 individual responses representing 160 public sector organizations in Australia. Using latent construct measurement, structural equation modeling (SEM)-partial least squares is used to test the theoretical model. Findings When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities that are critical to assimilation in private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. When top management effectively manages knowledge importation from external entities to counteract deficiencies, public sector organizations effectively assimilate BI knowledge into performance measurement yielding strong process performance. Research limitations/implications When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities critical to assimilation in the private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. The research extends the theory behind organizational absorptive capacity by highlighting how knowledge importation can be used as an external source facilitating internal knowledge creation. This collaborative knowledge creation leads to affective assimilation of BI technologies and associated performance gains. Practical implications The results provide guidance to public sector organizations that struggle to measure and validate service outcomes under New Public Management regulations and mandates. Originality/value The results reveal that consistent with the philosophies behind New Public Management strategies, private sector measures for increasing organizational absorptive capacity can be applied in the public sector. However, knowledge importation appears to be a major catalyst in the public sector where the resources to retain skilled professionals with an ability to leverage contemporary technologies into service performance are often very limited. Top management team knowledge and skills are critical to effectively leveraging these internal and external knowledge creation mechanisms.

Impact of conspiracy beliefs on Covid-19 fear and health protective behavior: a case of university students

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Asif Naveed ◽  
Amara Malik ◽  
Khalid Mahmood
Keyword(s):  
Public Health ◽  
Health Education ◽  
University Students ◽  
Private Sector ◽  
Protective Behavior ◽  
Cross Sectional Survey ◽  
Content Type ◽  
Conspiracy Beliefs ◽  
The Impact ◽  
Health Education And Promotion

PurposeThis study investigated the impact of conspiracy beliefs on fear of Covid-19 and health protective behavior of university students in Pakistan.Design/methodology/approachA cross-sectional survey using an online questionnaire was conducted at three universities in Punjab (e.g. two public sectors and one private sector) with permission from concerned authorities for data collection. A total of 374 responses were received that were analyzed by applying both descriptive and inferential statistics.FindingsThe results indicated the prevalence of conspiracy beliefs and fear of Covid-19 among university students of two public sector universities and one private sector university. Furthermore, the conspiracy beliefs of university students predicted their fear of Covid-19. However, conspiracy beliefs did not predict the health protective behavior of university students.Research limitations/implicationsThese results had serious implications for public health in Pakistan demonstrating the critical need for health education and promotion as individual preparedness along with system preparedness is essential to combat Covid-19 pandemic and infodemic. These results are useful for policymakers, healthcare professionals, university administration and library staff for making evidence-based decisions toward health education and promotion related to the Covid-19 pandemic.Originality/valueIt is hoped that the present study would make an invaluable contribution to existing research on promotional health in general and the role of conspiracy beliefs in putting public health at risk in particular as limited studies have been published so far.

US move against Israeli firm will not slow spyware use

2021 ◽  
Keyword(s):  
Private Sector ◽  
Regulatory Reform ◽  
Democratic Accountability ◽  
Content Type ◽  
Western Countries ◽  
Autocratic Regimes

Significance Reports about this spyware’s widespread use to target activists and critics have tarnished the company, which on November 3 was blacklisted by US President Joe Biden’s administration. This prohibits US entities from purchasing NSO Group products. Impacts Calls for regulatory reform to limit the development, use and export of spyware capabilities will increase in Western countries The private sector in Israel and elsewhere will continue to play a major role in the development of the lucrative global spyware market. Autocratic regimes and states with weak democratic accountability will actively use spyware as more business shifts online.

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