scholarly journals Securitization of (bad) loans to Italian SMES: The role of the public guarantee

2021 ◽  
Vol 16 (4) ◽  
pp. 193-208
Author(s):  
Lucilla Bittucci ◽  
Stefano Marzioni ◽  
Pina Murè ◽  
Marco Spallone
Keyword(s):  
Financial Stability ◽  
Positive Impact ◽  
Central Banks ◽  
General Purpose ◽  
Recent Past ◽  
Balance Sheets ◽  
Access To Credit ◽  
The Public ◽  
Main Factors

This study investigates the main factors driving the evolution of the securitization of loans to Italian small and medium-sized enterprises (SMEs). The value of securitization increased in last two years, even though it has not been used as collateral for central banks. The disposal of non-performing loans (NPLs) may have been rather triggered by increasing attention of the international institutions to such an issue, within the general purpose of financial stability. The purpose of this paper is to interpret such a phenomenon focusing on Italian banks and restricting the analysis to the case of securitizations backed with loans to small and medium-sized enterprises (SMEs). The interesting result that emerges, supported by econometrically tested empirical evidence, is that given the orientation of international financial institutions, such as the ECB and the EBA, and reacting to incentives coming from the fiscal policy authorities for the public guarantee of loans, banks have been using securitization to reduce the burden on their bad balance sheets due to (NPLs). It was found that the public guarantee had a positive impact on SME securitization, whereas securitization in other sectors has not been affected significantly. Such evidence suggests that, in the absence of a public guarantee, the financial stability target would have been at risk, and the effectiveness of collateral-based policies in the recent past must be improved to enhance access to credit for SMEs.

scholarly journals Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

2021 ◽  
Vol 13 (11) ◽  
pp. 5954
Author(s):  
Qamar Abbas ◽  
Li Junqing ◽  
Muhammad Ramzan ◽  
Sumbal Fatima
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Pattern ◽  
The Public ◽  
Mediating Role ◽  
National Output ◽  
State Governance

This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

scholarly journals Food for all? Critically evaluating the role of the Incredible Edible movement in the UK

2019 ◽  
pp. 139-153
Author(s):  
Michael Hardman ◽  
Mags Adams ◽  
Melissa Barker ◽  
Luke Beesley
Keyword(s):  
Positive Impact ◽  
Economic Benefits ◽  
Powerful Method ◽  
The Public ◽  
Social Environmental ◽  
The Uk ◽  
Food Movement ◽  
The Town ◽  
Insight Into

With the concept of Urban Agriculture (UA) growing in popularity, more cities and towns are exploring opportunities to enable the practice and transform neglected spaces into havens for produce. This chapter provides an insight into one such town, Todmorden and its Incredible Edible movement, located in the heart of England. This chapter adopts a qualitative approach to critically exploring the IET movement and to understand its impact on Todmorden. We engaged with key actors and the public in order to ascertain views towards the schemes, analysing the positives and negatives of the model. Findings revealed that the scheme has an overwhelmingly positive impact on the town, with social, environmental and economic benefits. Furthermore, it was made clear that IET is helping to create a more just food movement in Todmorden, particularly through its free for all philosophy. However, some negatives were also highlighted during the course of the research, predominately around maintenance issues and a lack of perceived inclusivity in parts. Overall, the scheme was highly valued and seen as a powerful method for growing the wider UA movement; recommendations centred on further replicating the model and helping local food to prosper in similar locations globally.

scholarly journals The Judicial Implementation of the Provisions of Corporate Crimes in Saudi Law: التنفيذ القضائي لأحكام جرائم الشركات في القانون السعودي

2019 ◽  
Vol 3 (5) ◽  
Author(s):  
Mohammed bin Fahed al-Subaie
Keyword(s):  
Competent Authority ◽  
Recent Past ◽  
The Public ◽  
Judicial Implementation ◽  
Descriptive Method ◽  
Commercial Courts ◽  
Commercial Disputes

    This study aimed to identify the judicial implementation of the provisions of corporate crimes in Saudi law and determine the objectives of judicial execution and the competent authority in adjudicating the disputes of commercial companies and the role of lawyers in the trial proceedings in the crimes of commercial companies. Moreover, this study aimed at how to achieve justice in commercial courts. The researcher followed the descriptive method in this study as it has included all texts related to the activities and commercial relations contained in the current regulations. The results of the study reached several results, the most important of which are: The jurisdiction over the consideration of commercial disputes in the Kingdom has passed several stages, but in the recent past it is divided into two parts: the first is the Diwan of Grievances; the second is the committees with jurisdiction. However, Ombudsman for Commercial Disputes. As well as the judicial environment in the Kingdom is living a significant positive movement, especially in the legislative and executive aspects, and the non-unification of commercial judicial bodies in one hand led to duplication of the judiciary and resulted in the presence of more than one body charged with separating with the differentiation of competencies and their overlap in one conflict. The study recommended the need to unify the Saudi commercial judicial bodies in one jurisdiction, the commercial courts of the public judiciary, and rely on modern techniques of telecommuting methods to provide easy communication with lawyers.  

scholarly journals From cash to central bank digital currencies and cryptocurrencies: a balancing act between modernity and monetary stability

2020 ◽  
Vol 47 (4) ◽  
pp. 911-938 ◽  
Author(s):  
Ansgar Belke ◽  
Edoardo Beretta
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Service Providers ◽  
Central Banks ◽  
Payment Systems ◽  
Content Type ◽  
Paper Money ◽  
Payment Instruments ◽  
Tier System

PurposeThe paper explores the precarious balance between modernizing monetary systems by means of digital currencies (either issued by the central bank itself or independently) and safeguarding financial stability as also ensured by tangible payment (and saving) instruments like paper money.Design/methodology/approachWhich aspects of modern payment systems could contribute to improve the way of functioning of today's globalized economy? And, which might even threaten the above-mentioned instable equilibrium? This survey paper aims, precisely, at giving some preliminary answers to a complex – therefore, ongoing – debate at scientific as well as banking and political levels.FindingsThe coexistence of State's money (i.e. “legal tender”) and cryptocurrencies can have a disciplining effect on central banks. Nevertheless, there are still high risks connected to the introduction of central bank digital currency, which should be by far not considered to be a perfect substitute of current cash. At the same time, cryptocurrencies issued by central banks might be exposed to the drawbacks of cryptocurrencies without benefiting from correspondingly strong advantages. A well-governed two-tier system to be achieved through innovation in payment infrastructures might be, in turn, more preferable. Regulated competition by new players combined with “traditional” deposits and central bank elements remains essential, although central banks should embrace the technologies underlying cryptocurrencies, because risk payment service providers could move to other currency areas considered to be more appealing for buyers and sellers.Research limitations/implicationsWe do not see specific limitations besides the fact that the following is for sure a broad field of scientific research to be covered, which is at the same time at the origin of ongoing developments and findings. Originality and implications of the paper are, instead, not only represented by its conclusions (which highlight the role of traditional payment instruments and stress why the concept of “money” still has to have specific features) but also by its approach of recent literature's review combined with equally strong logical-analytical insights.Practical implicationsIn the light of these considerations, even the role of traditional payment systems like paper money is by far not outdated or cannot be – at this point, at least – replaced by central bank digital currencies (whose features based on dematerialization despite being issued and guaranteed by a public authority are very different).Social implicationsNo matter which form it might assume is what differentiates economic from barter transactions. This conclusion is by far not tautological or self-evident since the notion of money has historically been a great object of scientific discussion. In the light of increasingly modern payment instruments, there is no question that money and the effectiveness of related monetary policies have to be also explored from a social perspective according to different monetary scenarios, ranging from central bank digital currencies to private currencies and cash restrictions/abolition.Originality/valueThe originality/value of the following article is represented by the fact that it (1) refers to some of the most relevant and recent contributions to this research field, (2) moves from payment systems in general to their newest trends like cryptocurrencies, cash restrictions (or, even, abolition proposals) and monetary policy while (3) combining all elements to reach a common picture. The paper aims at being a comprehensive contribution dealing with "money" in its broadest but also newest sense.

scholarly journals Financial Independence of Central Bank through the Balance Sheet Prism

2014 ◽  
Vol 3 (2) ◽  
pp. 37-59 ◽  
Author(s):  
Valentina Ivanović
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Central Banks ◽  
Central Bank Independence ◽  
Financial Independence ◽  
Balance Sheets ◽  
Financial Strength ◽  
The Global Financial Crisis

Abstract The main reason for central bank independence lies in the fact that it is necessary to clearly distinguish spending money from the ability of making money. Independence of central banks is now a characteristic of almost all developed and highly industrialized countries. In this respect, it represents an essential part of the overall economic reality of these countries. Over the past decade or somewhat earlier, the issue of importance of central bank independence has been raised in developing countries, making the institutional, functional, personal and financial independence of central banks current topics for consideration. The key reason for the growing attention to financial independence of central banks is due to the effects of the global financial crisis on their balance sheets and therefore the challenges related to achieving the basic goals of the functioning of central banks - financial stability and price stability. Financial strength and independence of central banks must be developed relative to the policy and tasks that are carried out and risks they face in carrying out of these tasks. Financial independence represents a key base for credibility of a central bank. On one hand, the degree of credibility is associated with the ability of central banks to carry out their tasks without external financial assistance. In order to enhance the credibility of central bank in this regard, it must have sufficient financial strength to absorb potential losses and that power must be continuously strengthened by increasing capital and rearranging profit allocation arrangements. This is particularly important in times of crisis.

scholarly journals Monetary Policy within a COVID-19 Environment: The Role of Central Banks and the Main Challenges for the Euro-zone

2021 ◽  
Vol 27 (2) ◽  
pp. 197-212
Keyword(s):  
Interest Rate ◽  
Crisis Management ◽  
Financial Stability ◽  
Inflation Rate ◽  
Central Banks ◽  
Environmental Crisis ◽  
Monetary Policies ◽  
Health Crisis ◽  
Euro Zone

The last financial crisis in 2008 has weakened the Euro-zone countries. Most of them were deeply affected, and their economic growths have not returned to their pre-crisis rates. Moreover, the inflation rate is still very low despite the European Central Bank’s interventions. Twelve years later, a health crisis occurred. The ECB have reacted to this event by using monetary tools. We can cite for example the famous temporary Pandemic Emergency Purchase Programme (PEPP) to save the Euro-zone countries from a systemic disaster. The current interest rate is negative, and it seems to raise some questions about the efficiency of policies and the threat to economic, monetary, and financial stability. Negative interest rate may also generate the next crisis. This paper is dedicated to recommendations based on the role of Central Banks in the health crisis management and, more generally, environmental crisis management instead of evaluating the impacts of the monetary policies on Eurozone countries because it is too early to measure with acuity the COVID-19 effects.

scholarly journals A new paradigm of modern central banking

2013 ◽  
Vol 2 (2) ◽  
pp. 75-78
Author(s):  
Aleksandra Szunke
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Central Banking ◽  
First Century ◽  
Financial Instability ◽  
New Paradigm ◽  
The Global Financial Crisis

The changes in the modern monetary policy, which took place at the beginning of the twenty-first century, in response to the global financial crisis led to the transformation of the place and the role of central banks. The strategic aim of the central monetary institutions has become preventing financial instability. So far, central banks have defined financial stability as a public good, which took care independently of other monetary purposes (Pyka, 2010). Unconventional monetary policy resulted in changes the global central banking. The aim of the study is to identify a new paradigm of the role and place of the central bank in the financial system and its new responsibilities, aimed at countering financial instability.

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