Determinants of non-cash payments in the Eurozone: Culture matters

2020 ◽  
Vol 89 (4) ◽  
pp. 29-38
Author(s):  
Mechthild Schrooten ◽  
Armin Varmaz
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Cultural Factors ◽  
Uncertainty Avoidance ◽  
Cultural Issues ◽  
European Central ◽  
Cash Payment ◽  
The Difference ◽  
Basic Hypothesis ◽  
The Impact

Summary: Retail shops incentive contactless transactions during the current COVID-19 pandemic. Customers are asked to pay cashless to prevent contagion. Traditionally, there are large differences in the extent and acceptance of non-cash payments among nations. This paper analyzes empirically the determinants of the payment behavior in the member states of the Eurozone asking how to explain these traditional differences in non-cash payment preferences. Our basic hypothesis is that culture makes the difference across nations matter. The paper adds to the existing literature not only by focusing on the determinants of preferences for non-cash payments from a macroeconomic perspective but also by analyzing cultural factors. The payment data is gathered with the European Central Bank (ECB) and Eurostat. We examine the impact of culture on payment preferences by the means of the Hofstede indicators. Our empirical results show the importance of cultural issues to understand the acceptance of non-cash payments. In particular, the results suggest that a higher degree of uncertainty avoidance goes in line with more non-cash payments. Zusammenfassung: Im Zuge der Corona-Pandemie hat der Einzelhandel den Einsatz von non-cash Einzelhandel vorangetrieben. Um eine Covid-Ansteckung zu verhindern, werden Kund*innen gebeten bargeldlos zu zahlen. Tatsächlich es gibt zwischen einzelnen Volkswirtschaften große Unterschiede in der Verwendung von Bargeld und bargeldlosen Zahlungen. Im Beitrag wird empirisch der Frage nachgegangen, welche Faktoren hinter diesen Unterschieden stehen. Die zentrale Hypothese ist, dass Kultur eine große Rolle spielt. Dieses Paper analysiert auf der Grundlage der vorhandenen empirischen Literatur den Einfluss kultureller Faktoren auf den Einsatz von bargeldlosen Zahlungen. Dazu werden nicht nur makroökonomische Daten von der Europäischen Zentralbank und Eurostat, sondern auch die Hofstede Indikatoren herangezogen. Die Ergebnisse zeigen, dass insbesondere die kulturelle Dimension „Uncertainty Avoidance“ die nationalen Differenzen der gesellschaftlichen Akzeptanz erklären kann. Volkswirtschaften mit einer höheren „Uncertainty Avoidance“ setzen stärker auf non-cash.

Troika's Portuguese Ministry of Justice Experiment: Dissipation of Doubts about Success, Continuation and Confirmation of Positive Results

2019 ◽  
Vol 12 (24) ◽  
pp. 40-53
Author(s):  
Pedro Miguel Alves Ribeiro Correia ◽  
◽  
Susana Antas Videira ◽  
Ireneu de Oliveira Mendes ◽  
◽  
...  
Keyword(s):  
Quantitative Analysis ◽  
Empirical Study ◽  
Central Bank ◽  
European Commission ◽  
International Monetary Fund ◽  
European Central Bank ◽  
European Central ◽  
The Impact ◽  
Positive Effect ◽  
Positive Results

This article is the continuation of a series of studies on the impact of the measures implemented by the Portuguese Ministry of Justice. This research addresses the results obtained in the civil enforcement actions arising from objectives included in the Memorandum of Understanding (MoU) signed between Portugal and the so-called Troika (International Monetary Fund / European Commission / European Central Bank). The empirical study was extended to cover the quantitative analysis of the results achieved not only during the Troika period but also during the post-Troika period. The results show and confirm a continued positive effect on the level of civil enforcement actions in the period analyzed.

Conditions and Obligations in ECB Supervisory Decisions as Ancillary Provisions under SSM Law

2017 ◽  
Vol 14 (1) ◽  
Author(s):  
Gianni Lo Schiavo
Keyword(s):  
Adverse Effects ◽  
Central Bank ◽  
European Central Bank ◽  
Administrative Law ◽  
Eu Law ◽  
Insurance Supervision ◽  
European Central ◽  
The Right ◽  
National Competent Authorities ◽  
The Impact

The Single Supervisory Mechanism (SSM) Regulation has conferred prudential tasks to the European Central Bank (ECB) which it shall carry out within a SSM composed of the ECB and national competent authorities (NCAs). This article assesses the legal feasibility to attach conditions and obligations in ECB supervisory decisions. It looks at other areas of EU administrative law (merger control and State aid law), assesses the ECJ Atradius (C-18/14) judgment in the area of insurance supervision and argues that conditions and/or obligations are ancillary provisions that can be included in ECB supervisory decisions as a matter of EU law. The article evaluates also the impact of the inclusion of conditions and/or obligations on the right to be heard under art.22 SSM Regulation. While conditions and obligations may have adverse effects, the article examines to what extent the right to be heard applies in cases the ECB includes conditions and/or obligations in ECB supervisory decisions.

Institutions of the European Union

2017 ◽  
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Central Bank ◽  
European Central Bank ◽  
Lisbon Treaty ◽  
The European Union ◽  
Fourth Edition ◽  
European Central ◽  
Council Of Ministers ◽  
The Impact

The Institutions of the European Union explains the functions, powers, and composition of the European Union institutions. From the Council of Ministers to the European Central Bank, all of the most important organisations are analysed and explained. Updates for the fourth edition include discussions of the impact of the ratification of the Lisbon Treaty and the financial crisis in the Eurozone on the EU’s institutions, as well as the rise of Euroscepticism. Authoritative yet accessible, it remains the best guide to how this range of different bodies work together to provide political direction, manage policies, and integrate contrasting interests within the European Union. Each chapter includes helpful features such as boxes, websites, and suggested further reading to aid learning.

Lower reversal limit of the European Central Bank deposit rate and sustainability of traditional banking business model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariya Gubareva
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Public Utility ◽  
Yield Curves ◽  
Usual Model ◽  
Deposit Rate ◽  
Content Type ◽  
European Central ◽  
Banking Business ◽  
The Impact

Purpose The purpose of this paper is to present an empirical analysis of the European Central Bank (ECB) deposit rate dynamics during 2014–2020, attempting to answer how deep could be cut further this rate without causing persistent yield curve inversions (YCI), i.e. lower yields for longer terms. It addresses the sustainability of the traditional banking and shows that inverted yield curves would require changing the banking-as-usual model to the government-guaranteed long-term-borrowing coupled with short-term-lending. This research poses the question of whether the banking sector should become a public utility. Design/methodology/approach The future scenarios of negative interest rate (NIR) behavior are modeled seeking to increase the understanding of NIR environment. Using an event-study design, empirical analyses of the ECB deposit rate cuts on the Euro Over-Night Index Average rates is performed at different maturities. Findings This study finds that, starting from the lower limit of 80 basis points below zero, the ECB deposit rate is likely to result in complete YCIs. Social implications This paper evidences that moving rates into a more negative territory is likely to be completely counterproductive for banking industry, implying that banking at such conditions would become heavily dependent on governmental support. The results shed light on the interdependence of the banking business, financial monetary policy and welfare of the society, providing policymakers with empirically defined milestones for policy implementations. Originality/value This paper clarifies the impact of the ECB deposit rate on the overall shape of yield curves. The novelty of this research resides in investigation of YCI by simulating NIR dynamics.

Crisis, austerity and water

2017 ◽  
Author(s):  
Fred Powell
Keyword(s):  
Welfare State ◽  
South Korea ◽  
Central Bank ◽  
European Commission ◽  
International Monetary Fund ◽  
European Central Bank ◽  
Social Crisis ◽  
European Central ◽  
Financial Conditions ◽  
The Impact

This chapter examines the impact of the 2008 crash on the Irish welfare state. The 2008 crash seriously damaged Ireland's reputation. Once bracketed with Taiwan and South Korea in terms of the strength of its economy, it now found itself compared to the sick men of Europe — Portugal, Italy and Greece. A bailout was provided by the ‘troika’ of the European Commission/ International Monetary Fund/European Central Bank with penal financial conditions, which came to be popularly known as ‘austerity’. The failure of the Irish welfare state to protect children indicates social priorities that seriously deviate from the norms of international children's rights. Austerity turned these welfare deficits into a full-blown social crisis.

Was für eine Europäische Verfassung?

2005 ◽  
Vol 35 (139) ◽  
pp. 287-300 ◽  
Author(s):  
Étienne Balibar
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Social Rights ◽  
European Constitution ◽  
Fundamental Level ◽  
European Central

The problem of a European Constitution is discussed at a fundamental level. In which way, can we speak about such a Constitution? Thearticle argues against the “postnational souveranism”, legitimating state against citizens. A new kind of citizenship is favoured based on extended social rights. The constitution now proposed contrarily makes the European Central Bank and its neoliberal policy to central and nearly unchangeable institution.

Sign in / Sign up

Export Citation Format

Share Document