Kazakh central bank cuts lending rate as sector mends

2018 ◽  
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Chain Reaction ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
The Third ◽  
Structural Fragility ◽  
National Bank ◽  
A Chain ◽  
Sizeable Reduction

Subject Kazakhstan's banking sector. Significance The National Bank of Kazakhstan (NBK) lowered its policy rate to 9.25% on April 16, the third cut since the start of 2018. The bank approved the cut despite a fall in the Russian ruble's value, which pushed Kazakhstan's tenge down to a three-month low in a chain reaction. The central bank had earlier predicted that improved macroeconomic conditions would open the way to an expansion in lending by commercial banks. Impacts Further banking sector consolidation is likely, bringing the number of banks from 32 to below 30. Despite a sizeable reduction in non-performing loans, banks face high risks from low-quality loans not classified as such. The transfer of problem loans to special-purpose vehicles is masking banks' structural fragility. The depressed purchasing power of households will keep private borrowing in check.

Kazakhstan Ministry of Finance and National Bank of Kazakhstan v. Ascom Group SA, Anatolie Stati, Gabriel Stati, Terra Raf Trans Traiding Ltd

2021 ◽  
Vol 195 ◽  
pp. 387-413
Keyword(s):  
United Nations ◽  
Central Bank ◽  
International Law ◽  
The State ◽  
Content Type ◽  
Customary International Law ◽  
State Immunity ◽  
National Bank ◽  
United Nations Convention ◽  
Ministry Of Finance

387State immunity — Immunity from execution — Customary international law — United Nations Convention on Jurisdictional Immunities of States and Their Property, 2004 — Articles 19 and 21 — Whether property of a State central bank immune from measures of constraintArbitration — Post-Award enforcement — Attachment — Whether property of a State central bank immune from attachment in satisfaction of an arbitral award rendered against the State — The law of Sweden

scholarly journals Bank performance variability and strands of inflationary conditions

2020 ◽  
Vol 29 (3) ◽  
pp. 235-253
Author(s):  
Rexford Abaidoo ◽  
Hod Anyigba
Keyword(s):  
Performance Indicators ◽  
Banking Sector ◽  
Key Performance Indicators ◽  
Bank Performance ◽  
Inflation Expectations ◽  
Content Type ◽  
Return On Equity ◽  
Macroeconomic Conditions ◽  
Macroeconomic Uncertainty ◽  
The Us

PurposeThis study seeks to examine the extent to which strands of inflationary related conditions (inflation expectations, inflation uncertainty and realized inflation); macroeconomic uncertainty and the likelihood of recessionary conditions influence performance indicators in the US banking sector over a specified time period.Design/methodology/approachThe study adopts seemingly unrelated regression model (SUR) advanced by Zellner (1962) in its examination of how specific strands of inflationary conditions, and other adverse macroeconomic conditions influence performance dynamics in the US banking sector.FindingsEmpirical evidence suggest that among various adverse macroeconomic conditions examined, inflation expectations and macroeconomic uncertainty tend to have significant constraining impact on key performance indicators in the US banking sector than other conditions examined. Comparatively, this study finds that inflation expectations and macroeconomic uncertainty tend to have much more constraining impact on return on equity, than on return on assets in the US banking sector. Results further suggest that among the three bank performance indicators examined, net interest margin is the least vulnerable bank performance indicator to various adverse macroeconomic conditions examined in the study.Practical implicationsApart from the various empirical results noted above, this study's findings are projected to help inform strategic planning decisions among institutions in the banking sector. The various findings could, for instance, inform policies and operational strategies geared toward reducing vulnerability associated with specific performance indicators such as return on equity. This reduction could be achieved by critically examining how the various performance indicators react to individual adverse macroeconomic conditions examined in this study. The process could ultimately help in developing tailored measures/procedures aimed at reducing how susceptible key performance indicators are to the various adverse macroeconomic conditions. This study's findings could also provide the platform for more adaptive policies aimed at minimizing the effects of noted macroeconomic conditions on operational efficiency in the banking sector.Originality/valueThe uniqueness of this study, compared to related ones found in the literature, stems from its treatment of three variant of related strands of macroeconomic condition (different variant of inflationary conditions) in the same framework in its empirical analysis.

scholarly journals Capital buffers based on banks’ domestic systemic importance: selected issues

2015 ◽  
Vol 7 (3) ◽  
pp. 207-220 ◽  
Author(s):  
Michal Skorepa ◽  
Jakub Seidler
Keyword(s):  
Banking Sector ◽  
Relevant Literature ◽  
Capital Requirements ◽  
Content Type ◽  
Individual Level ◽  
Level Data ◽  
National Bank ◽  
Key Steps ◽  
Importance Assessment

Purpose – The purpose of this paper is to assist the numerous regulators around the globe who are currently considering ways to impose domestic systemic importance-based capital requirements on banks. Design/methodology/approach – The article discusses in some detail a number of issues from the viewpoint of regulatory practice, mentioning relevant literature where available. Comments partly reflect the experience that the Czech National Bank gathered over the past two years while preparing its own regime of domestic systemic importance-based capital requirements on banks. Findings – The authors stress, among other points, one weakness of the (otherwise well-designed) method suggested by the Basel Committee for Banking Supervision (BCBS) for assessment of banks’ systemic importance: the method is “relative” in that it does not reflect the absolute importance of the banking sector for the economy. The paper also explains that in some cases, use of individual-level rather than consolidated-level data may be preferable, in contrast to what the BCBS guidance suggests. Further, implications of the buffers over a longer term are pointed out. Originality/value – As far as the authors are aware, this article is the first to comprehensively discuss the main issues surrounding both key steps (systemic importance assessment and determination of buffer level) in the process of introducing buffers based on domestic systemic importance. A number of questions related to these two steps are raised which regulators may appreciate to be reminded of, even if some of the questions are such that it is not possible to give a generally applicable answer to them.

Iran’s banking reforms will falter

2017 ◽  
Keyword(s):  
Central Bank ◽  
Dispute Resolution ◽  
Banking Sector ◽  
Banking System ◽  
Banking Reform ◽  
Content Type ◽  
Global Standards ◽  
Central Asian ◽  
European Banks ◽  
Dispute Resolution Mechanism

Subject Iran’s banking sector in urgent need of reform. Significance Tehran's banks face major corruption scandals, and a complex policy environment. In July 2016, the Central Bank of Iran (CBI) announced major plans to reform the country’s banking system in line with global standards. Iranian banks have been cut off from the international financial system since 2012, owing to sanctions. After the 2015 nuclear deal, Iran expected that the lifting of sanctions would reverse this situation. However, despite interest among Central Asian and Turkish banks, progress has been limited. Impacts European banks will be slow to engage with Iran, fearing unpredictable US penalties. Differing US and Iranian interpretations of sanctions lifting under the nuclear deal may come up before the dispute resolution mechanism. Macroeconomic strains will put depreciatory pressure on the currency. If President Hassan Rouhani fails to win re-election in May, the chances of banking reform would be much lower.

Ukraine's banking sector to grow leaner but stronger

2016 ◽  
Keyword(s):  
Economic Crisis ◽  
Large Scale ◽  
Banking Sector ◽  
Capital Requirements ◽  
Real Sector ◽  
Medium Term ◽  
Content Type ◽  
Quick Recovery ◽  
Positive Effects ◽  
National Bank

Subject Early signs of recovery and consolidation in Ukraine's banking sector. Significance For Ukraine's banking sector, the effects of the economic crisis since early 2014 include dramatic currency devaluation, the undermining of public trust and numerous bankruptcies. The crisis has also had positive effects as the National Bank of Ukraine (NBU) set about purging the sector of weak, poorly run institutions. Impacts Capital requirements will cause significant consolidation in the near-to-medium term, as many smaller banks will be unable to comply. By failing to resume large-scale lending to the real sector, the banks will limit the chances of a quick recovery. Russian-owned banks are not immediately threatened by official sanctions, owing to the hefty deposit base they have developed.

NLD will push Myanmar banking reform in 2016

2015 ◽  
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Foreign Banks ◽  
Sector Reform ◽  
Banking Reform ◽  
Content Type ◽  
Investor Confidence ◽  
Banking Sector Development ◽  
Donor Support ◽  
International Donor

Subject Myanmar banking reform outlook. Significance Myanmar's central bank will issue additional banking licences to an undisclosed number of foreign banks in 2016, it announced on December 14. This is part of the wider effort to modernise and build the capacity of Myanmar's banking sector. Impacts Greater banking sector modernisation and liberalisation would aid domestic business sector growth. International donor support will be needed to help Myanmar's banking sector development. Banking sector reform requires the support of Myanmar's central bank personnel, and consumer and foreign investor confidence.

Ecuador banking sector is set for a comeback

2018 ◽  
Keyword(s):  
Private Sector ◽  
Central Bank ◽  
Banking Sector ◽  
Bank Lending ◽  
Foreign Banks ◽  
Economic Recovery ◽  
Content Type ◽  
Loan Growth ◽  
Double Digit

Subject Banking sector prospects. Significance Private sector banks in Ecuador enjoyed strong double-digit loan growth last year -- a reflection of the troubled economy’s gradual emergence from recession. That economic recovery, and the pragmatic willingness of President Lenin Moreno to work with the private sector, is generating optimism regarding the prospects of the country’s banking sector. Impacts Strong bank lending is key for economic recovery, allowing firms to increase investments and consumers to spend more. Taking the E-money system from the central bank shows Moreno’s pragmatism vis-a-vis the private sector. The planned sale of state-owned lender Banco del Pacifico could attract the interest of foreign banks.

Russian budget plan points to shift in priorities

2017 ◽  
Keyword(s):  
Health Education ◽  
Central Bank ◽  
Federal Government ◽  
Government Spending ◽  
Banking Sector ◽  
Living Standards ◽  
Federal Spending ◽  
Content Type ◽  
Welfare Spending ◽  
Education And Health

Significance Plans for the next three years point to a rebalancing in the structure of expenditure, with greater emphasis on spending on health, education and support for the economy. Federal government spending is projected to remain approximately at current levels while declining as a proportion of GDP as the economy grows. Impacts Gains in living standards may be unevenly distributed across regions as welfare spending declines as a share of GDP. Financial pressures on local government may ease with higher federal spending on education and health. The Central Bank has been given a free hand to deal with banking sector stress, but this may change if the sector experiences a crisis.

Hungary’s rising prices may shift monetary policy

2019 ◽  
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Euro Area ◽  
Federal Reserve ◽  
Content Type ◽  
Core Inflation ◽  
The Us ◽  
Manufacturing Sectors ◽  
National Bank

Significance The sharp slide in the forint is fuelling inflationary pressures, testing the resolve of the National Bank (MNB -- the central bank) to continue providing stimulus to the economy. Despite a surge in core inflation in Hungary to 3.8%, the MNB is using this year’s dovish U-turns by the ECB and the US Federal Reserve (Fed) as cover to keep monetary policy ultra-loose. Impacts The dollar index is strengthening despite the dovish U-turn by the Fed and is putting an end to the sharp rally in EM currencies in January. Inflationary pressures will be muted across the euro-area, with core inflation falling to 0.8% in March, less than half the ECB’s target. PMIs show Czech and Polish manufacturing sectors continuing to contract and Hungarian growth at its weakest level since 2016.

Independence and effectiveness of Shariah supervisory board of Islamic banks: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Kausar Alam ◽  
Muhammad Shahin Miah
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Research Approach ◽  
Islamic Banks ◽  
Legitimacy Theory ◽  
Snowball Sampling ◽  
Content Type ◽  
Theoretical Contribution

PurposeThe main objective of the study is to ascertain the level of independence and the effectiveness of the Shariah Supervisory Board (SSB) members of Islamic banks in Bangladesh. This is because only SSB members are empowered to oversee and certify the overall business functions of Islamic banks.Design/methodology/approachThis paper implements qualitative case research approach to explore the research objective in the context of Bangladesh. We applied purposeful and snowball sampling tactics for selecting respondents. By using a semi-structured questionnaire and face-to-face interviews, we collect data from SSB members, central bank executives and experts in Islamic banking and Shariah governance.FindingsThe study finds that majority Islamic banks' SSB's positions are similar to the Board of Directors (BOD) of the banks. Next, this study finds that in recruiting/selecting SSB members, some banks do not follow the guidelines of the central bank. This study finds mixed evidence regarding the independence of the members of the SSB. Most of the respondents opined that SSBs do not have power; in some cases, members of SSB are not independent and seeming powerless as BOD selects and recruits them. In contrast, they are dependent on management in respect of strategy implementation.Research limitations/implicationsThe study significantly contributed to the national and global regulatory bodies by identifying an important governance determinant of Islamic banks that is the independence of SSB members, which is highly important for both Shariah functions, and to enhance the trust level of the stakeholders. This study makes a theoretical contribution by documenting the violation of stakeholder theory and agency theory in recruiting SSB members by BOD's choice. The lack of SSB members' independence has an impact on Shariah legitimacy of the Islamic banks which is contradictory with the notion of legitimacy theory. This study recommends the central bank to ensure the independence of the SSB and central bank should take initiatives to develop an environment for the Islamic banking sector.Originality/valueThis study extends the literature of corporate governance relating to Islamic banking and financial institutions. More specifically, this paper explores the necessity of independence of members of the monitoring body (here SSB), an important constituent of governance, to ensure high-quality governance and transparency in reporting to increase diverse stakeholders' trust/confidence. The absence of independence of SSB in performing their functions contradicts with the agency, stakeholder and legitimacy theory, which is inconsistent with global evidence, that demands further investigations.

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