scholarly journals Commercial Bank Money, Seigniorage, and the Macroeconomy

2018 ◽  
Author(s):  
Biagio Bossone
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Equilibrium Prices ◽  
Different Types ◽  
Money Creation ◽  
Fractional Reserves ◽  
Macroeconomic Implications ◽  
The Impact ◽  
The Relationship ◽  
Bank Money

This article evaluates the macroeconomic implications of commercial bank seigniorage, which emerges from the commercial banks’ power to create money in a fractional reserves regime. After evaluating the impact on aggregate output of commercial bank money relative to alternative exchange arrangements, the article identifies the determinants of commercial bank seigniorage and analyzes how equilibrium prices are determined in an economy where commercial banks extract seigniorage. The article also identifies the conditions under which commercial banks extract seigniorage, clarifies the relationship between seigniorage from commercial bank money creation and profits from pure financial intermediation, and shows how commercial bank seigniorage changes with different types of interbank payments settlement.

A study of the relationship between employee wage and commercial banks efficiency in China

2016 ◽  
Vol 7 (2) ◽  
pp. 147-159
Author(s):  
Jiangtao Li ◽  
Jianyue Ji ◽  
Yanxia Wang
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Calculated Data ◽  
Wage Structure ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

Purpose Efficiency of a commercial bank affects both its competitiveness and the role it plays in the process of economic development. Although great efforts have been exerted in developing the various aspects of banking efficiency, there seems to be a lack of research on examining the impact of the bank efficiency from the employee wage perspective. The mechanism of how employee wage affects commercial bank efficiency and the relationship between the two were analyzed in this paper. Based on the growing body of research on efficiency in banking, the aim of this paper is to examine if competitiveness of employee wages at any commercial bank has any impact on the bank efficiency score. Design/methodology/approach The method used was quantitative analysis, which was based on comparing the evaluated efficiencies of the banks with employee wages published in the bank reports. The empirical data in this paper were based on 16 Chinese listed commercial banks from 2004 to 2012. The per capita wage of commercial banks was selected as the wage indicator, and the efficiency value obtained by the slack-based measure (SBM) model was selected as the efficiency indicator. According to the calculated data, the Tobit regression model was built to analyze the relationship between employee wage and commercial bank efficiency. Findings The research results show that employee wage is the key variable that influences the efficiency of Chinese commercial banks, and the inverted U-shaped relationship between employee wage and commercial banks efficiency shows up. Practical implications The wage structure data of the composition of basic pay and bonus were not available at the time of conducting the research. Per capita wages were used instead to reflect the employee wage levels of Chinese banks. Originality/value This study can provide some help for the banking industry by analyzing the wage levels from the perspective of efficiency and also further enriches the theoretical system of the relationship between employee wage and bank efficiency.

scholarly journals Lending and Cash Required Reserve: Empirical Evidence from Ethiopian Commercial Bank

2018 ◽  
Vol 14 (13) ◽  
pp. 179 ◽  
Author(s):  
Mitku Malede Yimer
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Predictor Variable ◽  
Bank Lending ◽  
Least Square ◽  
Financial Data ◽  
Ordinary Least Square ◽  
Credit Creation ◽  
The Impact ◽  
The Relationship

The study was mainly intended to determine the effect of cash required reserve on commercial bank lending in Ethiopia using panel data of eight purposively chosen commercial banks over the period of eleven years (2005 to 2015). The investigation tested the relationship between commercial bank lending and cash required reserve. Eleven years financial data of eight purposively chosen commercial banks were used for analysis purpose. Ordinary least square model was applied to test the impact of predictor variable on commercial bank lending. The result suggests that, there is no significant relationship between commercial bank lending and cash required reserve in Ethiopian commercial. This study suggests that commercial bank have to give less emphasis to cash required reserve because it doesn’t weakens banks credit creation ability and does not leads a bank to be insolvent.

scholarly journals Inflation and Profitability of Commercial Banks in Rwanda: A Case Study of Bank of Kigali

2019 ◽  
Vol 14 (10) ◽  
pp. 35
Author(s):  
Gilbert Batsinda ◽  
Jaya Shukla
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Sample Size ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Descriptive Research ◽  
Demand Pull ◽  
The Impact ◽  
The Relationship

The study evaluates the impact of inflation on the profitability of commercial banks in Rwanda with specific focus on the Bank of Kigali. In Rwanda, the effect of inflation on the financial performance of commercial banks has not been adequately researched in relation to types of inflation. It is against this issue that the researcher wanted to carry out this research to find the relationship between inflation and profitability of commercial bank in Rwanda. The specific objectives of study were: to examine the trend of inflation in Rwanda; to examine the profitability of Bank of Kigali between 2011 and 2015; and to establish the relationship between inflation and profitability. To achieve objectives study used descriptive research design with population and sample size of 26 respondents. Correlation analysis is used to examine relationship between study variables. The study findings revealed that cost push inflation has positive high correlation to the Profitability of BK. Findings indicated that demand pull inflation and Monetary inflation has also positive high correlation profitability of Bank of Kigali. Finally it is concluded that the types of inflation affect commercial banks are cost push inflation, demand pull inflation and monetary inflation. Inflation has a significant role in enhancing commercial bank’s profitability.

scholarly journals TECHNIQUE OF ASSESSMENT OF THE IMPACT OF A REPUTATIONAL RISK ON STABILITY OF COMMERCIAL BANK

2020 ◽  
pp. 18-25
Author(s):  
Екатерина Алексеевна Бибикова ◽  
Ирина Валерьевна Курникова
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Credit Institution ◽  
Reputational Risk ◽  
Reputation Risk ◽  
Using Data ◽  
The Stability ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

At present, in Russia, when the revocation of licenses from credit organizations continues, the significance of reputational risks is growing sharply. In connection with this subject of research, reputational risk and its influence on maintaining the stability of a credit institution are presented in this article. The aim of the work is to develop a new methodology for assessing the impact of reputation risk on the stability of commercial banks, as well as the practical application of the method using data from a credit institution. As a result of the study, a specific methodology was compiled, which allows you to directly assess the reputation risk in a commercial bank; the relationship of this type of risk and the stability of the credit institution is determined; the methodology has been applied in practice using data from several commercial banks; It is shown how reputation risk can affect the stability of a credit institution. The presented article allows one to determine what is necessary to understand as reputational risk, why the assessment of reputational risk is of the same importance as the assessment of the stability of a credit institution, and what attention should be paid to the leaders of a credit institution so that their bank has a satisfactory level of reputational risk, and therefore , and level of sustainability

scholarly journals Credit Management Practices, Loan Repayment Management and Profitability Of Commercial Banks’ Branches In Uganda.

2021 ◽  
Author(s):  
◽  
Anthony Elemu
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Management Practices ◽  
Mediating Effect ◽  
Loan Repayment ◽  
Credit Management ◽  
Bank Branches ◽  
The Impact ◽  
The Relationship

Background: The study examined the relationship between credit management practices, loan repayment management and profitability of commercial banks branches in Uganda. The objectives included; to establish the relationship between credit management practices and profitability; relationship between loan repayment management and profitability; mediating effect of loan repayment management on credit management practices and profitability; and examine the impact of credit management practices and loan repayment management on profitability. Methodology: The study was a cross- sectional research and applied a quantitative approach. A sample of 234 commercial bank branches was used from a total of 573. The study obtained responses from 166 branches. Primary data was obtained from a branch manager and credit supervisor using a structured questionnaire. Validity of the questionnaire was obtained using CVI and reliability using Cronbach Alpha Coefficient. Data was analyzed using SPSS v.20 to obtain descriptive statistics, correlation and regression analyzes to present results. A Med-graph was used to test the mediation of loan repayment management. Results: This study ascertained a positive relationship between credit management practices and profitability; and positive relationship between loan repayment management and profitability. The study further ascertained a partial mediation of loan repayment management in the relationship between credit management practices and profitability. Furthermore, the study revealed that jointly credit management practices and loan repayment management predict profitability of commercial bank branches. More so, the study established that the best predictor of profitability is loan repayment management. This study ascertained a positive relationship between credit management practices and profitability; and positive relationship between loan repayment management and profitability. Conclusion: The study concludes that credit management practices and loan repayment management are among the critical factors influencing profitability at the commercial bank branch level.

scholarly journals On the money creation approach to banking

2021 ◽  
Author(s):  
Salomon Faure ◽  
Hans Gersbach
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Central Banks ◽  
Capital Regulation ◽  
Bank Deposits ◽  
Central Bank Money ◽  
Money Creation ◽  
Asset Purchases ◽  
Bank Equity ◽  
Bank Money

AbstractWe study today’s two-tier money creation and destruction system: Commercial banks create bank deposits (privately created money) through loans to firms or asset purchases from the private sector. Bank deposits are destroyed when households buy bank equity or when firms repay loans. Central banks create electronic central bank money (publicly created money or reserves) through loans to commercial banks. In a simple general equilibrium setting, we show that symmetric equilibria yield the first-best level of money creation and lending when prices are flexible, regardless of monetary policy and capital regulation. When prices are rigid, we identify the circumstances in which money creation is excessive or breaks down and the ones in which an adequate combination of monetary policy and capital regulation can restore efficiency. Finally, we provide a series of extensions and generalizations of the results.

Improving Assessments of Another Auditor's Competence

2009 ◽  
Vol 28 (1) ◽  
pp. 53-78 ◽  
Author(s):  
Noel Harding ◽  
Ken T. Trotman
Keyword(s):  
Group Feedback ◽  
Potential Intervention ◽  
Outcome Feedback ◽  
Average Group ◽  
Different Types ◽  
Specific Feedback ◽  
Specific Outcome ◽  
The Impact ◽  
The Relationship ◽  
Audit Effectiveness

SUMMARY: Auditing standards require auditors to assess the competence of their colleagues. However, previous studies have shown that auditors' assessments of their colleagues' competence are inaccurate and overconfident, potentially leading to a reduction in audit effectiveness. In two related studies, we investigate both the process by which these assessments are made and a potential intervention aimed at improving these judgments. In study 1, we investigate the anchors used by senior auditors in assessing the competence of their subordinates and peers, and find that the anchors vary depending on the familiarity of the audit senior with their colleague. These findings inform study 2, which investigates the impact of different types of outcome feedback on auditors' assessments of another auditor's competence. We find that the effects of individual-specific feedback and average-group feedback will be contingent on the nature of the relationship between the assessor and assessee. Specifically, individual-specific outcome feedback is effective in reducing overconfidence when assessing the competence of a colleague with whom the assessor has previously worked, but not an unfamiliar colleague. When assessing the competence of an unfamiliar colleague, we find that average-group outcome feedback is effective in reducing overconfidence. Our results complement and extend earlier theory by showing that individuals, in assessing a colleague's competence, use anchors in addition to the competence of the assessor.

scholarly journals Research on Mediating Mechanisms and the Impact on Food Provision Services in Poor Areas from the Perspective of Stakeholders

2021 ◽  
Vol 18 (19) ◽  
pp. 10510
Author(s):  
Tianwei Geng ◽  
Hai Chen ◽  
Di Liu ◽  
Qinqin Shi ◽  
Hang Zhang
Keyword(s):  
Ecosystem Service ◽  
Behavioral Responses ◽  
The Loess Plateau ◽  
Trade Offs ◽  
Different Types ◽  
Mediating Mechanisms ◽  
The Common ◽  
Food Provision ◽  
The Impact ◽  
The Relationship

Exploring and analyzing the common demands and behavioral responses of different stakeholders is important for revealing the mediating mechanisms of ecosystem service (ES) and realizing the management and sustainable supply of ES. This study took Mizhi County, a poverty-stricken area on the Loess Plateau in China, as an example. First, the main stakeholders, common demands, and behavioral responses in the food provision services were identified. Second, the relationship among stakeholders was analyzed. Finally, this study summarized three types of mediating mechanisms of food provision services and analyzed the influence of the different types of mediating mechanisms. The main conclusions are as follows: (1) Five main stakeholders in the study area were identified: government, farmers, enterprises, cooperatives, and middlemen. (2) Increasing farmers’ income is the common demand of most stakeholders in the study area, and this common demand has different effects on the behavioral responses of different stakeholders. (3) There are three types of mediating mechanisms in the study area: government + farmers mediating corn and mutton, government + enterprises mediating millet, and government + cooperatives mediating apples. On this basis, the effects of the different types of mediating mechanisms on variations in food yield, and trade-offs and synergies in typical townships, were analyzed.

scholarly journals The impact of capital ratio on lending of EU banks – the role of bank specialization and capitalization

Equilibrium ◽  
2016 ◽  
Vol 11 (1) ◽  
pp. 43 ◽  
Author(s):  
Małgorzata Olszak ◽  
Mateusz Pipień ◽  
Sylwia Roszkowska
Keyword(s):  
Commercial Banks ◽  
Robust Estimator ◽  
Bank Capital ◽  
Savings Banks ◽  
Cooperative Banks ◽  
Lending Activity ◽  
The Impact ◽  
The Relationship

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between loans growth and capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative banks and savings banks. We also expect that this effect is nonlinear, and is stronger in “low” capital banks than in “high” capital banks. In order to test our hypotheses, we apply the two-step GMM robust estimator for data spanning the years 1996–2011 on individual banks available in the Bankscope database. Our analysis shows that lending of poorly capitalized banks is more affected by capital ratio than lending of well-capitalized banks. Loans growth of cooperative and savings banks is more capital constrained that lending of commercial banks. Capital matters for the lending activity in contractions only in the case of savings and “low” capital banks.

Energy Efficiency of Vehicles

2020 ◽  
Author(s):  
Doug Carroll
Keyword(s):  
Energy Efficiency ◽  
Scientific Knowledge ◽  
Fuel Economy ◽  
Environmental Consequences ◽  
Energy Models ◽  
The World ◽  
Different Types ◽  
The Impact ◽  
The Relationship ◽  
Rational Decisions

Energy Efficiency of Vehicles educates readers about energy and the environment and the relationship between the energy we use and the environment. The world is at a point in time when people need to make very important decisions about energy in the next few decades. This book enables readers to utilize our scientific knowledge to make good rational decisions. Energy Efficiency of Vehicles provides information on: Calculations related to energy, power, and efficiency, and the impact of using different types of energy on the environment. Environmental consequences of consuming energy. Models related to impact of city driving on the energy efficiency and fuel economy of cars and trucks.

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