scholarly journals Impact of Green Central Bank Collateral Policy: Evidence from the People’s Bank of China

2021 ◽  
Author(s):  
Camille Macaire ◽  
Alain Naef
Keyword(s):  
Central Bank ◽  
Central Banks ◽  
Yield Spread ◽  
Medium Term ◽  
Difference In Differences ◽  
Bank Of China ◽  
The Impact

In June 2018, the People’s Bank of China (PBoC) decided to include green financial bonds into the pool of assets eligible as collateral for its Medium Term Lending Facility. We measure the impact of the policy on the yield spread between green and non-green bonds, or greenium. Using a difference-in-differences approach to compare pairs of green and non-green bonds issued by the same institutions, we show that the policy increased the greenium by 46 basis points. This experience can be useful to other central banks considering similar polices.

Central bank digital currency: the future of institutional changes in the banking sector

2021 ◽  
Vol 2021 (2) ◽  
pp. 26-48
Author(s):  
Volodymyr MISHCHENKO ◽  
◽  
Svitlana NAUMENKOVA ◽  
Svitlana MISHCHENKO ◽  
◽  
...  
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Banking Sector ◽  
Central Banks ◽  
Credit System ◽  
Bank Supervision ◽  
Bank Of China ◽  
Digital Currency ◽  
Financial Monitoring ◽  
The Impact

The purpose of the article is to reveal the essence and features of the introduction of digital currency of central banks and their impact on the conditions of monetary policy, financial stability, as well as institutional transformations in the development of national banking systems. The study is based on an analysis of projects of issuance and use of digital currencies of the ECB and central banks of leading countries, as well as the results of pilot projects of the National Bank of China on the use of the digital yuan and NBU on the e-hryvnia circulation. It is proved that digital currency of the central bank should be considered as a new dematerialized form of national currency in addition to cash and non-cash forms. Particular attention is paid to the study of the impact of the use of digital currency by central banks on the main parameters of economic policy. The main directions of potential influence of digital currency use on transformation of mechanisms of realization of monetary, budgetary and tax, macroprudential policy, maintenance of financial stability, activization of action of channels of the monetary transmission mechanism, and also on reforming of system of the state financial monitoring and bank supervision are substantiated. It is determined that one of the consequences of the use of digital currency will be the ability to ensure full control over all monetary transactions, which will help reduce the shadow economy and corruption. Structural and logical schemes of centralized and decentralized models of issuance and circulation of digital currency of central bank have been developed, directions of changes in the structure and functions of commercial and central banks, as well as in the structure of the financial and credit system in general have been substantiated.

scholarly journals The Impact of B Corp Certification on Growth

2021 ◽  
Vol 13 (13) ◽  
pp. 7191
Author(s):  
Valerie Paelman ◽  
Philippe Van Cauwenberge ◽  
Heidi Vander Bauwhede
Keyword(s):  
Regression Analysis ◽  
Propensity Score ◽  
Panel Regression ◽  
Medium Term ◽  
Difference In Differences ◽  
Dual Purpose ◽  
Full Effect ◽  
The Impact ◽  
Positive Effect ◽  
Over Time

We empirically test whether B Corp certification affects the short- and medium-term growth rates of sustainable enterprises. These businesses are growing in popularity and prevalence but, due to their hybrid nature, often suffer from external credibility issues and competing internal logics. Because of the rigorous and time-involving audit procedure, B Corp certification potentially sends a credible signal about the sustainable nature of the enterprise to its stakeholders. In addition, the B Corp label could help to straighten out internal tensions and align the company towards its dual purpose. Hence, B Corp certification could contribute to company success. We observe 129 firms that were certified between 2013 and 2018 over a period between six years prior and five years post-certification. Using propensity score matching, we identify 129 non-certified matching companies. On this sample, we conduct a difference-in-differences panel regression analysis to investigate the effect of certification. Our dataset allows us to study how the effects of B Corp certification evolve over time, which was previously untested. Our study documents a positive effect of B Corp certification on turnover growth and also that this effect increases with the time since certification, implying that certification requires some time for its full effect to become apparent.

scholarly journals Macro and microeconomic analysis of the impact of the covid-19 pandemic in Chile and the projections of the central bank's

2021 ◽  
Vol 8 (3) ◽  
Author(s):  
Rodrigo Barra Novoa
Keyword(s):  
Central Bank ◽  
Medium Term ◽  
Social Growth ◽  
Representative Data ◽  
First Approximation ◽  
Microeconomic Analysis ◽  
The Social ◽  
First Results ◽  
Business Profitability ◽  
The Impact

This article offers a first approximation of the impacts of the COVID-19 pandemic on the Chilean macro and microeconomic environment, using representative data from the latest formal surveys in the country. Here, the number of active firms plummeted in part due to the social crisis that began on October 18, 2019, and losses were felt in most industries due to the pandemic crisis that continues to generate job losses and low business profitability. These first results have implications for central bank policies and can predict medium and medium-term projections, especially for the country's economic and social growth.

Digital Ruble As an Element of the Digitalization of the Economy

2021 ◽  
pp. 22-28
Author(s):  
E. Myasnikova ◽  
L. Voskresenskaya
Keyword(s):  
Comparative Analysis ◽  
Central Bank ◽  
Commercial Banks ◽  
Central Banks ◽  
Digital Currency ◽  
Expert Assessments ◽  
Potential Risks ◽  
Excessive Load ◽  
Model C ◽  
The Impact

The article is devoted to the discussion of the prospect of issuing in Russia the digital currency of the Central Bank - the digital ruble. The properties and characteristics of the digital ruble, models of the functioning of the digital currency are considered. The place of the Central Bank in the process of functioning of the platform for the production of digital rudders shown. The main stages of development and implementation of the digital ruble are presented. Expert assessments of the possibilities and consequences of the introduction of the digital ruble are discussed. The impact of the digital ruble of the Central Bank on the financial system and the potential risks of introducing a digital currency are assessed. A comparative analysis of technologies for creating a digital ruble platform been carried out. The strategies of the central banks of various countries in creating models and mechanisms for issuing digital currencies into circulation are considered. Conclusions are made about the prospects for the introduction of the digital ruble in Russia. It noted that the problem of choosing the organization of the circulation of digital currency remains unresolved. Model C creates an excessive load of settlements on the Central Bank; Model D distributes the settlement load among commercial banks, which greatly increases the risks of clients – legal entities and individuals.

scholarly journals Modern models of systems of central bank digital currency

2021 ◽  
Vol 37 (2) ◽  
pp. 205-240
Author(s):  
Dmitry Kochergin ◽  
Keyword(s):  
Central Bank ◽  
Central Banks ◽  
Payment Systems ◽  
Bank Of China ◽  
Digital Currency ◽  
Cross Border ◽  
Economic Interpretation ◽  
Key Characteristics ◽  
National Implementation ◽  
Retail Payments

The article examines modern models of digital currency systems of central banks (CBDC) for retail payments and wholesale settlements. The study gives economic interpretation and defines the key characteristics of central bank digital currencies, identifies the features of the main models of digital currencies systems and analyzes the most advanced national implementation projects of CBDC. The study concludes that the digital currencies of central banks are a new (digital) form of fiat money. The implementation of digital currencies of central banks is due to the need to improve the efficiency of the monetary and payment systems and is aimed at preserving of the central banks as a monetary issuer. The main advantages of digital currencies for retail payments are the offer of a highly liquid, low-risk and universally accessible means of payment. The key benefits of wholesale digital currencies are to provide faster, safer, and cheaper cross-border payments. Among the models of digital currencies systems for retail payments (R-CBDC) the model of hybrid system is characterized by the best reliability and speed when processing a large number of payment transactions. Therefore, these systems are the most promising for implementation. Between the models of systems for wholesale payments (W-CBDC) systems with a universal digital currency are the most suitable for eliminating the main problems of cross-border payments. However, the implementation of such systems may require a large number of technological, managerial and financial changes in the payment systems of central banks. Currently, the most advanced project for issuing R-CBDC is the DCEP system of the People’s Bank of China, which is implemented on the basis of a hybrid model. W-CBDC projects are implemented jointly by the central banks of the leading countries, as they require financial and technological unification of settlements. Most projects of W-CBDC involve the use of systems with a convertible or universal digital currency.

scholarly journals Effectiveness of Central Bank Independence via Its Internal Characteristics

2011 ◽  
Author(s):  
Caroll H. Griffin
Keyword(s):  
Central Bank ◽  
Informal Economy ◽  
Developing Economies ◽  
Developed Countries ◽  
Central Banks ◽  
Central Bank Independence ◽  
Reserve Requirements ◽  
Formal Economy ◽  
The Impact ◽  
Macroeconomic Environment

This study examines central bank independence in developing countries of Latin America and Asia as well as selected developed countries. Many countries around the world, both developed and developing, have accepted the idea of central bank independence over the last several decades, so central banks have autonomy. A majority of studies has examined primarily the impact of central bank independence on inflation as promoting the theoretical benefits of a more stable and prosperous macroeconomic environment. However, there is only now sufficient data to empirically determine whether these claims are true. This research attempts to answer why developing economies with an informal sector resort to inflationary measures to finance their activities; how does a government induce an agent to choose the formal economy. In the trade-off between inflation and reserve requirements, the optimal policy is maximum inflation and minimum reserve requirements as increasing the steady-state utility of an optimizing agent. Also agents prefer the informal economy if policy relies on a maximum reserve requirement.  

scholarly journals Central Bank Policy toward the Covid-19 pandemic: Seeking patterns among the most powerful central banks

2021 ◽  
pp. 63-74
Author(s):  
Anna Matysek-Jędrych ◽  
Katarzyna Mroczek-Dąbrowska
Keyword(s):  
Central Bank ◽  
Global Economy ◽  
Central Banks ◽  
Central Banking ◽  
Financial Policies ◽  
Ex Post ◽  
Similar Solutions ◽  
European Economies ◽  
The Impact ◽  
The Given

Purpose: The main objective of this chapter is to identify the role of central banks in managing the crisis created by the Covid-19 pandemic. In order to explore this subject, the chapter attempts to identify similarities and differences in the behavior of selected central banks, those most important from the viewpoint of the global economy. Design/methodology/approach: The study encompassed 29 countries, mostly European economies (16) and other economies that bear the impact on the global output. The empirical analysis was based on k-means clustering analysis, which enabled us to identify groups of countries that followed similar solutions in response to the Covid-19 crisis. Findings: The analysis conducted in this chapter indicates the diverse nature of central banks’ policies and, in many cases, to aspecific bias toward an increase in monetary or financial policies. The intensification of the use of the tools of certain policies must be seen from the perspective of the purpose of those policies, but also in the context of the legal or statutory constraints imposed on central banks. Research limitations/implications: An interesting direction of research into the diverse nature of central bank policies will undoubtedly be to seek answers to the question of the effectiveness of these policies in the context of crisis. Such astudy, carried out ex post, may provide astarting point for designing future central bank crisis policy and implementing institutional solutions of anational or even supranational nature. Originality and value: The chapter shed some light on the regulatory and statutory sphere of central banking. We may clearly state that key central banks of the world do not operate within the framework of asingle universal rule and that there simultaneously is no optimal combination of crisis policy tools even for the same crisis. Therefore, when looking for regulatory and legal solutions, we should treat each case individually by designing regulations in away that corresponds to the specific features and conditions prevailing in the given financial and economic system.

scholarly journals Can the Central Bank Alleviate Fiscal Burdens?

2019 ◽  
pp. 130-170
Author(s):  
Ricardo Reis
Keyword(s):  
Central Bank ◽  
Public Debt ◽  
Balance Sheet ◽  
Central Banks ◽  
Resource Constraint ◽  
Income Risk ◽  
The Real ◽  
The Public ◽  
The Government ◽  
The Impact

Central banks affect the resources available to fiscal authorities through the impact of their policies on the public debt, as well as through their income, their mix of assets, their liabilities, and their own solvency. This chapter inspects the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource constraint. It discusses five channels: (i) how inflation can (and cannot) lower the real burden of the public debt, (ii) how seigniorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv) how central bank assets create income risk and whether or not this threatens its solvency, and (v) how the central bank balance sheet can be used for fiscal redistributions. Overall, it concludes that the scope for the central bank to lower the fiscal burden is limited.

NEW TYPE OF MONEY – CENTRAL BANK DIGITAL CURRENCY

2021 ◽  
pp. 187-197
Author(s):  
Sergei I. Belenchuk ◽  
◽  
Keyword(s):  
Central Bank ◽  
Developed Countries ◽  
The United States ◽  
Central Place ◽  
Central Banks ◽  
Bank Of China ◽  
Digital Currency ◽  
Speed Up ◽  
New Type ◽  
Conflicting Goals

Now, with all the acuteness, the question has arisen about what types of money can replace cash and non-cash money that are issued by central and commercial banks. The central place in the new system may be occupied by the CBDC, or “Central Bank Digital Currency”. The People’s Bank of China, which uses the formation of an almost entirely “cashless” economy as the basis for the transition to digital currency, was the first major central bank to test-run the issue of the CBDC. That forced central banks of leading developed countries, primarily the United States, to speed up the implementation of their own digital currencies, but as of the end of 2020, they have not yet come to a final opinion on how, within the framework of the chosen architecture of the CBDC, to achieve an accurate balance of sometimes conflicting goals

scholarly journals The external impacts of Central Bank independence

2010 ◽  
Vol 21 (54) ◽  
pp. 51-63 ◽  
Author(s):  
Carroll Howard Griffin
Keyword(s):  
Central Bank ◽  
Financial Crises ◽  
Inflation Targeting ◽  
Standard Procedure ◽  
Developed Countries ◽  
Central Banks ◽  
Central Bank Independence ◽  
The World ◽  
The Impact ◽  
Macroeconomic Environment

The term "central bank independence" (or abbreviated, CBI) can be broadly defined as the degree of freedom of the central bank to pursue monetary policy without interference from political considerations. The idea of central bank independence has been widely accepted over the last several decades by many countries around the world, both developed and developing. Since being first written about academically in the late 1980s, many countries have come to adopt this policy and many governments have come to recognize this as standard procedure. As such, many countries around the world granted autonomy to their central banks during the 1980s and 1990s. The majority of past studies have examined primarily the impact of central bank independence on inflation. however, the additional theoretical benefits are much more far reaching, the result of a more stable and prosperous macroeconomic environment. Additionally, there is only now sufficient data to empirically determine whether many of these claims are true. This study examines central bank independence in developing countries of Latin America and Asia as well as selected developed countries to determine what actual impact an autonomous central bank has had. It also examines such phenomena as financial crises (including the current global crisis of 2008-2009), inflation targeting, legal systems, country development and fiscal policy to determine the effects of these items on not only inflation, but the broad spectrum of macroeconomic outcomes. Although there is some empirical evidence to support the benefits of central bank independence, it is limited in scope to certain areas.

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