scholarly journals The Rise of Digital Money

FinTech Notes ◽  
2019 ◽  
Vol 19 (01) ◽  
Author(s):  
Tobias Adrian ◽  
Tommaso Mancini Griffoli
Keyword(s):  
Consumer Protection ◽  
Financial Stability ◽  
Credit Card ◽  
Global Economy ◽  
Regulatory Issues ◽  
Monetary Value ◽  
Bank Deposits ◽  
Digital Money ◽  
Illegal Activities ◽  
Insight Into

This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy. The Rise of Digital Money analyses how technology companies are stepping up competition to large banks and credit card companies. Digital forms of money are increasingly in the wallets of consumers as well as in the minds of policymakers. Cash and bank deposits are battling with so-called e-money, electronically stored monetary value denominated in, and pegged to, a currency like the euro or the dollar. This paper identifies the benefits and risks and highlights regulatory issues that are likely to emerge with a broader adoption of stablecoins. The paper also highlights the risks associated with e-money: potential creation of new monopolies; threats to weaker currencies; concerns about consumer protection and financial stability; and the risk of fostering illegal activities, among others.

scholarly journals Financial Consumer Protection in the Household Lending Sector : An Assessment of the Korean Experience

2017 ◽  
Vol 2 (No. 2 Oct 2017) ◽  
pp. 15-34
Author(s):  
Man Cho ◽  
Seung Dong You ◽  
Young Man Lee
Keyword(s):  
Consumer Protection ◽  
Financial Stability ◽  
Credit Card ◽  
Service Providers ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Financial Inclusion ◽  
Future Research ◽  
Regulatory Authorities ◽  
Policy Measures

The objective of this paper is to offer a systematic review and assessment of the policy measures adopted to date for financial consumer protection (FCP) in the household lending sector in Korea. In so doing, we focus on the “software” aspects of the policies adopted so far in terms of four particular groups of consumer issues: (1) information provision (by service providers), (2) financial literacy programs, (3) sales practices, and (4) dispute resolution (rules and processes). We also attempt to relate the FCP policies to two broader goals of financial market regulations - financial stability and financial inclusion. Our analyses indicate that; the regulatory authorities in Korea initiated the FCP policies early on, which cover a fairly comprehensive set of policy measures with almost all sub-items of the aforementioned four dimensions being included; some of the FCP policies are driven in large part by the intent of stabilizing the housing and mortgage market rather than protecting financial consumers per se, for which the regulatory authorities should weigh the anticipated benefit in terms of financial stability against the unintended cost in financial inclusion; and the Korean FCP policies tend to focus on the residential mortgage lending sector, which should be extended to other consumer lending products (e.g., credit – or non-collateralized – lending, credit card receivables, and car loans). Though seemingly comprehensive, the FCP policies in Korea should be further refined and enhanced with respect to their effectiveness, for which we discuss a series of future research topics.

The Oxford Handbook of the Brazilian Economy

2018 ◽  
Keyword(s):  
Direct Investment ◽  
Global Economy ◽  
Iron Ore ◽  
Structural Features ◽  
Economic Importance ◽  
Closed Economy ◽  
Current Characteristics ◽  
Insight Into ◽  
Contemporary Context ◽  
Over Time

Brazil constitutes a globally vital but troubled economy. It accounts for the largest GDP in Latin America and ranks among the world’s largest exporters of critical commodities including iron ore, soya, coffee, and beef. In recent years Brazil’s global economic importance has been magnified by a surge in both outward and inward foreign direct investment. This has served to further internationalize what has been historically a relatively closed economy. The purpose of this Handbook is to offer real insight into the Brazil’s economic development in contemporary context, understanding its most salient characteristics and analyzing its structural features across various dimensions. At a more granular level, this volume accomplishes the following tasks. First, it provides an understanding of the economy’s evolution over time and the connection of its current characteristics to this evolution. Second, it analyzes Brazil’s broader place in the global economy, and considers the ways in which this role has changed, and is likely to change, over coming years. Third, reflecting contemporary concerns, the volume offers an understanding, not only of how one of the world’s key economies has developed and transformed itself, but also of the ways in which this process has yet to be completed. The volume thus analyzes the current challenges facing the Brazilian economy and the kinds of issues that need to be tackled for these to be addressed.

Money growth variability and output: evidence with credit card-augmented Divisia monetary aggregates

2020 ◽  
Vol 24 (5) ◽  
Author(s):  
Jinan Liu ◽  
Apostolos Serletis
Keyword(s):  
Financial Stability ◽  
Credit Card ◽  
Negative Impact ◽  
Balance Sheet ◽  
Credit Cards ◽  
Money Growth ◽  
Monetary Policies ◽  
Growth Variability ◽  
Significant Negative Impact ◽  
Growth Volatility

Abstract We reexamine the effects of the variability of money growth on output, raised by Mascaro and Meltzer (1983), in the era of the increasing use of alternative payments, such as credit cards. Using a bivariate VARMA, GARCH-in-Mean, asymmetric BEKK model, we find that the volatility of the credit card-augmented Divisia M4 monetary aggregate has a statistically significant negative impact on output from 2006:7 to 2019:3. However, there is no effect of the traditional Divisia M4 growth volatility on real economic activity. We conclude that the balance sheet targeting monetary policies after the financial crisis in 2007–2009 should pay more attention on the broad credit card-augmented Divisia M4 aggregate to address economic and financial stability.

scholarly journals The future of financial markets and regulation: what strategy for Europe?

foresight ◽  
2014 ◽  
Vol 16 (2) ◽  
pp. 95-108 ◽  
Author(s):  
Jean-Baptiste Gossé ◽  
Dominique Plihon
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Financial Stability ◽  
Design Methodology ◽  
Financial Integration ◽  
Content Type ◽  
Realistic Option ◽  
The Future ◽  
Unstable Environment ◽  
Insight Into

Purpose – This article aims to provide insight into the future of financial markets and regulation in order to define what would be the best strategy for Europe. Design/methodology/approach – First the authors define the potential changes in financial markets and then the tools available for the regulator to tame them. Finally, they build five scenarios according to the main evolutions observed on the financial markets and on the tools used by the regulator to modify these trends. Findings – Among the five scenarios defined, two present highly unstable features since the regulator refuses to choose between financial opening and independently determining how to regulate finance in order to preserve financial stability. Three of them achieve financial stability. However, they are more or less efficient or feasible. In terms of market efficiency, the multi-polar scenario is the best and the fragmentation scenario is the worst, since gains of integration depend on the size of the new capital market. Regarding sovereignty of regulation, fragmentation is the best scenario and the multi-polar scenario is the worst, because it necessitates coordination at the global level which implies moving further away from respective national preferences. However, the more realistic option seems to be the regionalisation scenario: this level of coordination seems much more realistic than the global one; the market should be of sufficient size to enjoy substantial benefits of integration. Nevertheless, the “European government” might gradually increase the degree of financial integration outside Europe in line with the degree of cooperation with the rest of the world. Originality/value – Foresight studies on financial markets and regulation are quite rare. This may be explained by the difficulty to forecast what will be their evolution in the coming decades, not least because finance is fundamentally unstable. This paper provides a framework to consider what could be the best strategy of regulators in such an unstable environment.

World 2021: Pandemic and economic problems remain acute

2021 ◽  
pp. 5-20
Author(s):  
M. V. Ershov
Keyword(s):  
Economic System ◽  
Global Economy ◽  
Large Scale ◽  
Real Economy ◽  
Economic Problems ◽  
Support Measures ◽  
Long Time ◽  
Digital Money ◽  
Successful Business ◽  
The Stability

The global economy continues to grow, albeit mainly due to large-scale support measures from governments and regulators. Moreover, the latter are not sure about the prospects for such development, since the economies do not demonstrate the potential for independent growth. As a result, in order to stimulate it, regulators are forced to expand the range of their tools, mechanisms, approaches, otherwise the risks to the stability of the global financial and economic system increase. All this is happening against the background of negative rates, which have become virtually ubiquitous and persist for a long time. New growth records are being set in the stock markets, and their gap from the real economy is growing. A number of sectors are beginning to dominate, forming distortions and bubbles in the markets. In such conditions, the importance of digital money, ecosystems, etc. increases. Moreover, the faster and more efficiently regulators can integrate into these formats, the more successful business, the population, and the economy as a whole will be.

scholarly journals Credit Card Fraud Detection Using Machine Learning Techniques

2020 ◽  
pp. 436-442
Author(s):  
Aruna Kumar Joshi ◽  
Vikram Shirol ◽  
Shreekanth Jogar ◽  
Pavankumar Naik ◽  
Annapoorna Yaligar
Keyword(s):  
Credit Card ◽  
Fraud Detection ◽  
Shopping Mall ◽  
Machine Learning Techniques ◽  
Credit Card Fraud ◽  
Public And Private ◽  
Transaction Process ◽  
Illegal Activities ◽  
Cost Utilization ◽  
The Cost

Credit Card Fraud is one of the major moral issues in the public and private bans sector. The effect of this problems leads to the several ethical trouble. The important themes are to notice the distinctive kinds of credit card fraud and to locate different methods that have been used in fraud detection. The sub-point is to suppose about existing and ruin down as of late dispensed discoveries in fraud detection. Probable upon the variety of extortion appeared with the banks or different financial organizations, exceptional measures can be embraced and executed. The work carried out in this paper are usually going to have really beneficial residences as a approaches as expenditure reserve fund and time capability. The cost utilization of the strategies investigated proper right here is in the minimization of credit card fraud. Anyway, there are up to now moral troubles when appropriate credit card customers are unsorted as fraudulent. Credit Card Fraud Detection is an method which will help people for their transaction process in shopping mall and any other transaction process nowadays fraud detection is nothing but an process where the criminals are found and there are many illegal activities are taking place which causes difficulty for people. Here in this paper we are using SMOTE technique to find fraud and this technique will help to sort both the normal transaction and fraud transaction this process can make easy to find fraudulent. And Neural Network KNN are also taken place to find Credit Card Fraud.

Credit Card Use and Risks in the E-Market

2013 ◽  
pp. 214-232
Author(s):  
Huong Ha
Keyword(s):  
Pilot Study ◽  
Consumer Protection ◽  
Credit Card ◽  
Online Shopping ◽  
Research Area ◽  
The Body ◽  
Policy Recommendations ◽  
Credit Card Fraud ◽  
Body Of Knowledge ◽  
Credit Card Use

This chapter aims to (1) examine the awareness and experience of undergraduates in Melbourne, Australia of current and potential online risks, (2) explore how undergraduates deal with online incidents, and (3) make policy recommendations on how to enhance e-consumer protection. A total of 802 valid responses were received from the surveys conducted in Melbourne, Australia in 2007-2008. Findings demonstrate that most of the respondents were not aware of online incidents which could lead to credit card fraud. A number of them have encountered online incidents. Also, several respondents would less likely seek help from government and/or non-government organisations when encountering online incidents. Overall, credit card use and risks in the e-market is an under-research area in Australia, and this is a pilot study in this field. Findings from this chapter would contribute to the body of knowledge of credit card use and debt due to online shopping, and e-consumer protection.

Trends and Future Directions of Net-Enabled Connectivity

2011 ◽  
pp. 1675-1682
Author(s):  
Indushobha Chengalur-Smith ◽  
Peter Duchessi
Keyword(s):  
Global Economy ◽  
Information And Communications Technologies ◽  
Future Directions ◽  
Communications Technologies ◽  
Insight Into ◽  
Critical Resources

In a global economy, organizations need to collaborate with other organizations because physical networks of suppliers and partners compete against one another rather than individual organizations. To enable more effective and efficient physical networks, organizations are using information and communications technologies (ICTs) to connect mutually dependent activities and tasks. Connected organizations may attain greater insight into the availability of critical resources, improved ability to respond quickly to events affecting the organization, and greater awareness of the variation between plans and actual results.

Consumer Protection in Online Shopping

2020 ◽  
pp. 203-225
Author(s):  
Emre Yildirim
Keyword(s):  
Consumer Protection ◽  
Credit Card ◽  
Online Shopping ◽  
Education Level ◽  
The Other ◽  
Internet Shopping ◽  
Low Level ◽  
Online Shoppers ◽  
Debit Cards ◽  
Structured Questionnaire

The main purposes of this research are (1) to reveal the virtual credit card (VCC) awareness of online shoppers and (2) to prepare a to do list for managers and relevant institutions to provide a more secured internet shopping process by enhancing the trust perception of consumers. To this end, a structured questionnaire consists of three sections was designed and conducted during the period April-May 2018 in Turkey. The findings achieved show that online shoppers mostly attach importance to the recognition of the website, which means they seek trust in online shopping process. On the other hand, they mostly use credit and debit cards, which may make consumers encounter serious fraud issues. VCC usage is only 4.9% in general although VCC awareness is 55.1%. This low level of VCC awareness is associated with education level and the information provided by the financial banks.

Implications of Central banks’ negative policy rates on financial stability

2018 ◽  
Vol 10 (2) ◽  
pp. 310-320
Author(s):  
Benjamin S. Kay
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Financial Stability ◽  
Global Economy ◽  
Content Type ◽  
Interest Rate Policy ◽  
Trade Offs ◽  
Negative Interest Rates ◽  
Rate Policy ◽  
Negative Interest Rate Policy

Purpose While central bankers have widely discussed the trade-offs of negative interest rates on monetary policy, the consequences of negative rates on financial stability are less well understood. The purpose of this paper is to examine the likely and possible financial stability consequences of a negative rates policy with particular focus on banks, short-term funding markets, foreign exchange markets, asset managers, pension funds and insurers. Design/methodology/approach It draws from international experience with negative interest rates to identify financial stability threats posed to any economy by negative interest rates, and it also highlights where the US experience is likely to differ. Findings In time, financial market threats and other logistical issues of a negative interest rate policy can be managed or overcome. Even cumulatively, these threats are likely to be small as long as the rates remain only modestly negative. However, if the rates remain negative for long periods or they become more sharply negative, the rewards of avoiding negative rates increase. Originality/value Does the negative interest rate policy directly or through these challenges of implementation present a substantial obstacle to achieving financial stability objectives? As policy rates go negative in a greater share of the global economy, the financial stability consequences remain poorly understood and under discussed.

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