scholarly journals The Basel III net stable funding ratio and a risk-return tradeoff: Bank-level evidence from Vietnam.

2021 ◽  
Vol 17 (2) ◽  
pp. 247-274
Author(s):  
Van Dan Dang
Keyword(s):  
Policy Framework ◽  
Basel Iii ◽  
Bank Profitability ◽  
Risk Return ◽  
Credit Risks ◽  
Alternative Measures ◽  
Potential Benefits ◽  
Bank Funding ◽  
The Impact

The Net Stable Funding Ratio (NSFR) liquidity rule under Basel III guidelines is designed to handle long-term liquidity risk, promoting the sustainable structures of bank funding. This study estimates the NSFR and analyses the impact of this liquidity ratio on banks according to a risk-return trade-off in Vietnam prior to the Basel III implementation. Using yearly data for commercial banks from 2007 to 2018, I find that banks with higher NSFR gain more potential benefits than banks with lower NSFR. Concretely, a rise in NSFR increases bank profitability and decreases bank funding costs, credit risks and liquidity creation, as evidenced by a comprehensive set of alternative measures. The findings of this study offer insightful implications on the bank policy framework advocating the Basel III liquidity regulation in Vietnam as well as other emerging markets.

scholarly journals Liquidity regulations and bank behavior: An emerging markets perspective

2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 194-211
Author(s):  
Tafirei Mashamba
Keyword(s):  
Emerging Markets ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Emerging Market Economies ◽  
Basel Iii ◽  
Market Economies ◽  
Coverage Ratio ◽  
The Impact

The 2007 to 2009 global financial crisis significantly affected the funding structures of banks, especially internationally active ones (Gambacorta, Schiaffi, & Van Rixtel, 2017). This paper examines the impact of liquidity regulations, in particular, the liquidity coverage ratio (LCR), on funding structures of commercial banks operating in emerging markets over the period 2011 to 2016. Similar to Behn, Daminato, and Salleo (2019) who developed a dynamic partial equilibrium model to examine capital and liquidity adjustments, this paper develops three dynamic error component adjustment models and estimates them using the two-step system generalized method of moments (GMM) estimator to analyze funding adjustments adopted by banks in emerging markets in response to the LCR requirement. The results revealed that banks in emerging markets responded to binding liquidity regulations by increasing deposit, equity as well as long-term funding. In terms of the magnitude of response, deposit funding was found to be more responsive to the LCR rule while the elasticity of equity and long-term funding to the LCR specification was found to be weak. The weak response of equity and long-term funding to liquidity standards was attributed to low levels of capital market development in emerging markets (Bonner, van Lelyveld, & Zymek, 2015). By and large, the results suggest that Basel III liquidity regulations have been effective in persuading banks in emerging market economies to fund their business activities with stable funding instruments. Based on this evidence, the study supports the adoption of Basel III liquidity regulations in emerging markets. Moreover, policymakers in emerging market economies should monitor competition for retail deposits to safeguard the benefits of the LCR rule and pay more attention to developing capital markets.

Dams: Effects of Hydrological Infrastructure on Development

2019 ◽  
Vol 11 (1) ◽  
pp. 125-148
Author(s):  
Andrew Dillon ◽  
Ram Fishman
Keyword(s):  
Economic Development ◽  
Flood Control ◽  
The Body ◽  
Future Research ◽  
Emerging Issues ◽  
Potential Benefits ◽  
The Impact ◽  
Benefits And Costs ◽  
Distributional Impacts

Hydrological investments, particularly irrigation dams, have multiple potential benefits for economic development. Dams also have financial, environmental, and distributional impacts that can affect their benefits and costs. This article reviews the evidence on the impact of dams on economic development, focusing on the levels and variability of agricultural productivity, and its effect on poverty, health, electricity generation, and flood control. We also review the evidence on irrigation efficiency and collective action of dam maintenance. Throughout the discussion, we highlight the empirical challenges that restrict the body of causally interpretable impact estimates and areas in which the evidence is particularly thin. We conclude with a discussion of emerging issues pertaining to the long-term sustainability of dams’ impacts and suggest directions for future research.

Impact of Financial Risks on the Profitability of Systematically Important Banks in Nigeria

Paradigm ◽  
2019 ◽  
Vol 23 (2) ◽  
pp. 117-129
Author(s):  
Olufemi Adewale Aluko ◽  
Funso Tajudeen Kolapo ◽  
Patrick Olufemi Adeyeye ◽  
Patrick Olajide Oladele
Keyword(s):  
Interest Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Financial Risks ◽  
Cross Sectional ◽  
Bank Profitability ◽  
Alternative Measures ◽  
Cross Sectional Dependence ◽  
Fixed Effects Regression ◽  
The Impact

This study examines the impact of financial risks in form of credit, interest rate and liquidity risk on the profitability of systematically important banks in Nigeria over the period from 2010 to 2016. The fixed effects regression model is estimated with Driscoll–Kraay standard errors in order to produce results that are robust to heteroscedaticity, autocorrelation, cross-sectional dependence and temporal dependence. After controlling for some bank-specific, industry-specific, macroeconomic and institutional factors, the empirical results show that credit and liquidity risks have a positive impact on bank profitability while interest rate does not have an impact. The results are robust to alternative measures of profitability.

scholarly journals An emergency strategy framework for managing COVID-19 in long-term care facilities in Brazil

2021 ◽  
Vol 15 ◽  
Author(s):  
Peter Lloyd-Sherlock ◽  
João Bastos Freire ◽  
Meirelayne Duarte ◽  
Monica Frank ◽  
Karla Giacomin ◽  
...  
Keyword(s):  
Long Term Care ◽  
Policy Framework ◽  
Intersectoral Collaboration ◽  
Term Care ◽  
Middle Income ◽  
Local Implementation ◽  
Middle Income Countries ◽  
Care Facilities ◽  
The Impact

This paper presents a novel policy framework to support government responses to COVID-19 in long-term care facilities (LTCFs) in low and middle-income countries. It focuses on issues that are of specific relevance to Brazilian policy-settings, including examples of its local implementation. The CIAT Framework combines and summarizes broad elements for an emergency strategy to address the potential effects of COVID-19. The 4 steps of the Framework entail policies to coordinate, identify, assess, and target support. Those policies can be applied immediately to mitigate the impact of the COVID-19 pandemic in LTCFs. It is, however, essential to situate these responses within a more comprehensive and permanent strategy. Intersectoral collaboration must evolve into a fully institutionalized system.

The impact of climate change on electricity demand in Australia

2018 ◽  
Vol 29 (7) ◽  
pp. 1263-1297 ◽  
Author(s):  
Nnaemeka Vincent Emodi ◽  
Taha Chaiechi ◽  
ABM Rabiul Alam Beg
Keyword(s):  
Climate Change ◽  
Peak Load ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Policy Uncertainty ◽  
Intergovernmental Panel ◽  
Distributed Lag ◽  
Potential Benefits ◽  
The Impact

This study estimates the short- and long-term impacts of climate change on electricity demand in Australia. We used an autoregressive distributed lag (ARDL) model with monthly data from 1999 to 2014 for six Australian states and one territory. The results reveal significant variations in electricity demand. We then used long-term coefficients for climatic response to simulate future electricity demand using four scenarios based on the representative concentration pathways (RCPs) of the Intergovernmental Panel on Climate Change (IPCC). Our results show a gradual increase in electricity consumption due to warmer temperatures with the possibility of peak demand in winter; however, demand tends to decrease in the middle of the twenty-first century across the RCPs, while the summer peak load increases by the end of the century. Finally, we simulated the impact of policy uncertainty through sensitivity analysis and confirmed the potential benefits of climate change adaptation and mitigation.

scholarly journals Perspectives on the Potential Benefits of Children’s Group-based Music Education

2021 ◽  
Vol 4 ◽  
pp. 205920432110335
Author(s):  
Linnavalli Tanja ◽  
Soni García Adriana ◽  
Tervaniemi Mari
Keyword(s):  
Music Education ◽  
Executive Functions ◽  
Cognitive Skills ◽  
Language Skills ◽  
Music Schools ◽  
Beneficial Effects ◽  
National School ◽  
Potential Benefits ◽  
The Impact

Recent empirical evidence suggests that attending individual instrumental training in music schools benefits the development of cognitive skills such as language and executive functions. In this article, we examine studies that have found these transfer effects provided by group-based music education in school and preschool contexts. We conclude that group-based music lessons may enhance children’s language skills and possibly executive functions, but evidence for the impact of music activities on intelligence—as measured by nonverbal intelligence tests—or long-term prosocial abilities is scarce. Although the beneficial effects of music on language skills and executive functions are small, they seem to be discernible. However, we do not know if they apply to all children or only to, for example, children who enjoy engaging in musical activities. We suggest that group-based music education should be part of the national school and preschool curricula, because of both the enjoyment of learning music-related skills and the impact it may have on children’s general learning. In parallel, we encourage new empirical longitudinal projects to be launched, enabling further investigations into the promises of music.

scholarly journals Understanding Implementation of Basel II and III in Albania: Obstacles and Solutions

2016 ◽  
Vol 6 (1) ◽  
pp. 30
Author(s):  
Sokol Ndoka ◽  
Altin Zefi ◽  
Ermela Kripa
Keyword(s):  
Banking Sector ◽  
Basel Ii ◽  
Basel Iii ◽  
Real Economy ◽  
Credit Risks ◽  
The Status ◽  
Capital Ratios ◽  
Stable Growth ◽  
The Stability ◽  
The Impact

Banking Sector in Albania is suffering from high NPL levels, compared with historic levels of NPL in Albania, or with regional nations who have comparable economics. The 2008 crises in USA taught us the impact that the real economy can have from a crisis in Banking Sector. Thus the implementation of Basel III framework and its Capital Requirement ratios becomes crucially important for the stability of the Financial sector and stable growth of the economy. This paper firstly examines the state of Basel II implementation in Albania by the banking sector. The banking sector is primarily invested in government bonds and treasuries and lending to businesses and individuals but the high levels of NPL from both bankrupted businesses and individual poses a credit risks and wider market risks. Albanian Government has committed to speed up implementation of Basel II and Basel III on capital ratios. But questions remain: What’s the status of the implementation? Can the economy absorb the costs of implementing or not implementing Basel III? Secondly we research the additional costs associated with implementation of the banking sector. Because of the expansionary policy of the Bank of Albania the lending rates have fallen but not as fast as expected. Credit growth has been mostly stagnant posing a risk to the growth of the economy. For this study we use time series on Financial Institutions in Albania from the Bank of Albania on capital ratios as well as the policies and requirements set. We find that Basel II criteria have not been met and more can be done to prepare the implementation of Basel III.

scholarly journals A Study of Availability and Utilization of Water Resources in Punjab

2020 ◽  
Vol 15 (3) ◽  
pp. 544-559
Author(s):  
B S Sidhu ◽  
Rakesh Sharda ◽  
Sandeep Singh
Keyword(s):  
Surface Water ◽  
Industrial Development ◽  
Policy Framework ◽  
Resource Estimation ◽  
Crop Water ◽  
Rapid Urbanization ◽  
Irrigation Development ◽  
Self Reliance ◽  
The Impact

While water is renewable, only a finite amount of it is available. Rapid urbanization, industrial development, and growth in food demand contribute to the shortage of freshwater in many countries. The limited availability of surface water and its uneven distribution in time and space has increased the dependence on groundwater (GW) in Punjab. Its irrigation development is characterized by excessive extraction of GW to meet the crop water requirements for ensuring the country’s self-reliance in food. GW development guided by populist political pronouncements has contributed to serious environmental and ecological concerns. The paper, using the GW resource estimation methodology-2015, assesses the net annual replenish able GW availability (21.58 billion cubic meters) and GW extraction (35.78 billion cubic meters), and thus a stage of GW extraction of 166%. It analyses the impact of continuous GW mining on the long-term behaviour of water table. Considering the declining availability of surface water under climate change, it is a high time to study the emerging GW scenario more scientifically and prescribe a policy framework for the future.

A Study on the Impact of Foreign Direct Investment (FDI) on Indian Economy

2017 ◽  
Vol 3 (3) ◽  
Author(s):  
G. Suresh Babu ◽  
C. Sreeramulu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Fdi Inflows ◽  
Internal Resources ◽  
Fund Flow ◽  
The Government ◽  
The Impact

Foreign Direct Investment (FDI) is fund flow between the countries in the form of inflow or outflow by which one can able to gain some benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. The effectiveness and efficiency depends upon the investors perception, if investment with the purpose of long term then it is contributes positively towards economy on the other hand if it is for short term for the purpose of making profit then it may be less significant. Depending on the industry sector and type of business, a foreign direct investment may be an attractive and viable option. Any decision on investing is thus a combination of an assessment of internal resources, competitiveness, and market analysis and market expectations. The FDI may also affect due to the Government trade barriers and policies for the foreign investments and leads to less or more effective towards contribution in economy as well as GDP of the economy Foreign direct investment (FDI) as a strategic component of investment is needed by India for achieving the economic reforms and maintains the pace of growth and development of the economy. The paces of FDI inflows in India initially were low due to regulatory policy framework but there is a sharp rise in investment flows from 2005 towards because of the new policy has broadened. Foreign direct investment (FDI) has been viewed as a power affecting economic growth (EG) directly and indirectly. The main purpose of the study is to analyse the impact of FDI on economic growth in India.

African trade pact advance will hasten Nigerian buy-in

2018 ◽  
Keyword(s):  
Free Trade ◽  
Trade Agreement ◽  
Economic Effects ◽  
Welfare Gains ◽  
Content Type ◽  
Trading Partners ◽  
Potential Benefits ◽  
The Impact ◽  
Sales Increase

Subject African free trade. Significance Six countries are yet to sign the African Continental Free Trade Agreement (AfCFTA), including the continent’s largest economy Nigeria. While the impact of its absence will not be felt in the short term, existing trading partners will want to maintain a strong foothold in the country and its projected market of 350 million consumers by 2050. Impacts The AfCFTA could prompt long-term welfare gains worth 16.1 billion dollars, compared with 4.1 billion dollars in lost tariff revenue. The AfCFTA's economic effects may be milder, driving GDP and employment increases of just 0.97% and 1.17% respectively in the long term. Nigeria’s Dangote group could see sales increase five-fold by 2030, underscoring the potential benefits of AfCFTA to regional manufacturers.

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