scholarly journals Growth Expectations and Banking System Fragility in Developing Economies

2005 ◽  
Author(s):  
Eugenio Proto
Keyword(s):  
Developing Economies ◽  
Banking System ◽  
System Fragility

scholarly journals Sources Of Non-Performing Loans In Turkish Banking System

2011 ◽  
Vol 5 (10) ◽  
Author(s):  
Gokhan Karabulut ◽  
Mehmet Huseyin Bilgin
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Developing Economies ◽  
Banking System ◽  
Bank Loans ◽  
System Stability ◽  
Insurance System ◽  
Turkish Government ◽  
Deposit Insurance System ◽  
The Impact

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman; font-size: x-small;">The purpose of this paper is to examine the impact of the unlimited deposit insurance on non-performing loans and market discipline. Deposit insurance program play a crucial role in achieving financial stability. Governments in many advanced and developing economies established deposit insurance schemes for reducing the risk of systemic failure of banks. Deposit insurance has a beneficial effect of reducing the probability of a bank run.<span style="mso-spacerun: yes;">&nbsp; </span>However deposit insurance systems have its own set of problems. Deposit insurance systems create moral hazard incentives that encourage banks to take excessive risk. Turkey established an explicit deposit insurance system in 1960. Until 1994, the coverage determined by a flat rate but in that date, Turkey experienced a major economic crisis. In April 1994, Turkish government started to apply an unlimited deposit insurance scheme to restore banking system stability. Unlimited deposit insurance caused a remarkable increase at non-performing loans. This paper empirically estimates the impact of unlimited deposit insurance system on non-performing bank loans (NPLs) and analyses the other potential sources of NPLs. </span></p>

scholarly journals Determinants of Banking System Fragility: A Regional Perspective

2013 ◽  
Author(s):  
Hans Degryse ◽  
Muhammad Ather Elahi ◽  
María Fabiana Penas
Keyword(s):  
Banking System ◽  
System Fragility ◽  
Regional Perspective

scholarly journals What Determines Bond Market Development? New Theoretical Insights

2019 ◽  
Vol 2 (1) ◽  
pp. 99-106 ◽  
Author(s):  
Ameenullah Aman ◽  
Asmadi Mohamed Naim ◽  
Mohamad Yazid Isa
Keyword(s):  
Foreign Capital ◽  
Developing Economies ◽  
Relevant Literature ◽  
Banking System ◽  
Bond Market ◽  
Policy Implications ◽  
Market Development ◽  
Future Research ◽  
Secondary Markets ◽  
Financial Factors

Purpose- To diversify financing portfolio and reduce the reliance on the banking system, developing economies have realized the importance of bond market development. Bond markets facilitate economies to be more resilient towards the events of financial crises. Therefore, the share of the bond market in the financial system of the Asian economies has remarkably increased in the last decade. However, the academic literature on the bond market is very limited as compared to bank and equity markets. This was mainly because of the unavailability of vast data due to the absence of secondary markets for bonds in most of the economies. To fill this gap, this conceptual study postulates the theoretical relationships of bond market with various macroeconomic and financial factors. The study also assumes some new dimensions for bond financing and opens discussion for scholarly literature and empirical justifications.  Design/Methodology- Content analysis approach is used to review relevant literature for the possible associations of the bond market with macroeconomic and financial factors.  Practical Implications- The theoretical relationships discussed in the paper need empirical testing in future research to conclude policy implications. If the relationship between foreign capital and bond securities is established with empirical justification, we draw the policy that concerned authorities need to create a suitable environment for the attraction of foreign capital to provide support to the development of domestic debt market.

The Role of Macroeconomic and Financial Factors in Bond Market Development in Selected Countries

2020 ◽  
pp. 097215092090720
Author(s):  
Ameenullah Aman ◽  
Mohamad Yazid Isa ◽  
Asmadi Mohamed Naim
Keyword(s):  
Recurrent Events ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Banking System ◽  
Financial System ◽  
Bond Market ◽  
Market Development ◽  
Bond Markets ◽  
Primary Role ◽  
Macroeconomic Factors

Both developed and developing economies have showed serious interest in the development of domestic and regional bond markets. This interest was motivated by the recurrent events of economic crises, due to the over-reliance on the banking system. Therefore, this study investigates the macroeconomic and financial determinants of a bond market development, since the economic and financial environments play a primary role in the development of any financial market. Panel data analysis is employed to investigate the potential relationships. Results identify that financial system and most of the macroeconomic factors are positively associated with a bond market development. However, the stage of economic development is negatively related to bonds. Hence, policymakers need to strengthen and use existing financial system and economic variables to provide reasonable support to the development of bond markets. This study empirically analyses some unexplored theoretical relationships with respect to a bond market.

Financing Millennials in Developing Economies

2021 ◽  
pp. 269-291
Author(s):  
Bernardo Amezcua ◽  
Alicia De la Peña ◽  
Arturo Briseño ◽  
Alfredo Sánchez-Aldape ◽  
Juana María Saucedo-Soto ◽  
...  
Keyword(s):  
College Students ◽  
Financial Services ◽  
Developing Economies ◽  
Banking System ◽  
Banking Services ◽  
The World ◽  
Credit Programs ◽  
Spending Behavior ◽  
Banking Credit ◽  
To Receive

Young millennials (i.e., 18 to 24 years old) are not a primary market for the traditional banking system, especially in emerging economies. Despite the fact that almost 30% of college students have partial jobs, economic resources are limited and access to finance seems utopic. Banking services throughout the world but especially in growing economies do not fully serve students because of their lack of resources. Whether to pay for college studies or clothing, dinner or a weekend vacation, young millennials do not expect to receive banking credit from the big bank brands. In fact, this market segment is served by the retail industry with their own credit programs and financial services. In this chapter, the authors explore how young millennials have access to savings and credit, their spending behavior, their attitudes towards traditional sources of finance, and their financial inclusion and literacy. They also conducted an empirical exploratory study among college students in Mexico to hear firsthand how they managed their finances.

scholarly journals Informal Sector’s Structural and Demographic Fundamentals against the Efficacy of Monetary Policy in Nigeria

2020 ◽  
pp. 1-18
Author(s):  
Emeka Osuji ◽  
Stanley Emife Nwani
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Developing Economies ◽  
Banking System ◽  
Working Capital ◽  
Access To Finance ◽  
Banking Services ◽  
Start Up ◽  
Monetary Policy Effectiveness ◽  
Structured Questionnaire

The informal sector is globally significant because it accounts for much of the job placements, especially in the developing economies. About 99 per cent of the 37million enterprises in Nigeria are microenterprises, most of which are financially excluded. This study examined the structural and demographic features of Nigeria’s MSMEs, from the stand point of the efficacy of monetary policy. The study employed survey research design using structured questionnaire administered on 282 microenterprises in Lagos. The results indicated that the MSME sector suffers significantly from limited access to finance and banking services. Operators in the sector placed little or no reliance on commercial banks for both start-up and additional working capital. They, therefore, operated largely outside the banking system thereby acting, at best, as passive observers of government’s monetary policy actions. The study recommended the vigorous pursuit of financial inclusion, as a strategy for enhanced monetary policy effectiveness.

scholarly journals Determinants of Capital Adequacy of Nigerian Banks

Market Forces ◽  
2020 ◽  
Vol 15 (1) ◽  
Author(s):  
Sanyaolu Wasiu Abiodun ◽  
Alao Adeniyi Abdul-Azeez ◽  
Yunusa Lateef Adewale
Keyword(s):  
Management Practices ◽  
Developing Economies ◽  
Banking System ◽  
Capital Adequacy ◽  
Data Set ◽  
Nonperforming Loans ◽  
Flow Of Funds ◽  
Economic Progress ◽  
The Stability ◽  
Macroeconomic Determinants

A reliable banking system in developing economies like Nigeria is vital for economic progress as it facilitates the flow of funds to productive investment sectors. The capital adequacy requirement of banks is a crucial feature of the stability of the banks globally. Because of its importance, we have examined the antecedents to capital adequacy. We have used the data set of ten leading banks of Nigeria from 2007 to 2017. Our results indicate that ROA and loan to total assets are significantly associated with capital adequacy. However, we found that nonperforming loans and size are negatively associated with the capital adequacy. Our results do not support the association between macroeconomics variables and capital adequacy. Therefore, we recommend that all banking entities should reserve sufficient cash and cash equivalents as a percentage of deposits and apply aggressive risk management practices to reduce the magnitude of nonperforming loans. This study was restricted to one country. Future studies can be carried out in other countries. A comparative data set of more than one country may bring further insight into the phenomenonKeywords: Capital adequacy ratio, banks-specific determinants, macroeconomic determinants, Nigeria.

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