Systemic Risk Assessment in Low Income Countries: Balancing Financial Stability and Development

2015 ◽  
Author(s):  
Daniela Marchettini ◽  
Rodolfo Maino
Keyword(s):  
Risk Assessment ◽  
Low Income ◽  
Systemic Risk ◽  
Financial Stability ◽  
Low Income Countries

Enhancing Financial Sector Surveillance in Low-Income Countries - Financial Deepening and Macro-Stability

Policy Papers ◽  
2012 ◽  
Vol 2012 (27) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Financial Stability ◽  
Low Income Countries ◽  
Financial Deepening ◽  
Macroeconomic Policies ◽  
Risk Return ◽  
Inherent Risk ◽  
Analytical Tools ◽  
Shed Light

This paper aims to widen the lens through which surveillance is conducted in LICs, to better account for the interplay between financial deepening and macro-financial stability as called for in the 2011 Triennial Surveillance Review. Reflecting the inherent risk-return tradeoffs associated with financial deepening, the paper seeks to shed light on the policy and institutional impediments in LICs that have a bearing on the effectiveness of macroeconomic policies, macro-financial stability, and growth. The paper focuses attention on the role of enabling policies in facilitating sustainable financial deepening. In framing the discussion, the paper draws on a range of conceptual and analytical tools, empirical analyses, and case studies.

scholarly journals Energy Generation through Integrated Sustainable Waste Management- Case Study NAXOS 2018

2020 ◽  
Vol 06 (09) ◽  
pp. 125-131
Author(s):  
Shalini Jaiswal Preeti Singh Bahadur and Manjari Jain
Keyword(s):  
Developing Countries ◽  
Waste Management ◽  
Solid Waste ◽  
Low Income ◽  
Financial Stability ◽  
Low Income Countries ◽  
Sustainable Waste Management ◽  
Power Module ◽  
Physical Elements ◽  
Management Case Study

The integrated waste management method used to examine solid waste problems in different developing countries along with their solution. Integrated sustainable waste management includes examination of physical elements like assemblage, dumping, and reprocessing as well as government role like involvement of consumers and facility suppliers; financial stability; rational institutions supported by coherent guidelines. The data shows that the performance has enhanced considerably over past 10 years in different developing countries. The mean collection and disposal rate of disposal in the middle 95% are even more common than in the low-income cities, even before 50%. Recycling rates of 20–30% have been achieved by the informal sector in many low-income countries. The evidence suggests that efficient, effective, and inexpensive systems are compatible with local requirements and conditions, developed with the direct involvement of service recipients. Despite the remaining challenges, evidence from recent reforms suggests that sustainable solid waste and resource management are possible for developing countries. The articles distributed right now a wide scope of themes, including vitality recuperation from squander, waste to vitality advances, maintainable vitality frameworks, anaerobic absorption, warm circular segment plasma gasification, microalgal-based biorefinery, squander the board, displaying of cutting edge gasification frameworks, squander valorisation, and microbial power module innovation.

scholarly journals Drivers of Financial Access

2020 ◽  
Vol 20 (74) ◽  
Author(s):  
Corinne Deléchat ◽  
Lama Kiyasseh ◽  
Margaux MacDonald ◽  
Rui Xu
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Stability ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Financial Access ◽  
Country Level ◽  
Macroprudential Policies ◽  
Sub Saharan ◽  
Emerging And Developing Countries

This study analyzes the drivers of the use of formal vs. informal financial services in emerging and developing countries using the 2017 Global FINDEX data. In particular, we investigate whether individuals’ choice of financial services correlates with macro-financial and macro-structural policies and conditions, in addition to individual and country characteristics. We start our analysis on middle and low-income countries, and then zoom in on sub-Saharan Africa, currently the region that most relies on informal financial services, and which has the largest uptake of mobile banking. We find robust evidence of an association between macroprudential policies and individuals’ choice of financial access after controlling for personal and country-level characteristics. In particular, macroprudential policies aimed at controlling credit supply seem to be associated with greater resort to informal financial services compared with formal, bank-based access. This highlights the importance for central bankers and financial sector regulators to consider the potential spillovers of monetary policy and financial stability measures on financial inclusion.

scholarly journals Effect of Financial Inclusion on Financial Stability: Countrys by Income Level Clasiffication, 2004-2014

2020 ◽  
Vol 1 (1) ◽  
pp. 11-22
Author(s):  
Wirdatul Aini ◽  
A. Tony Prasetiantono
Keyword(s):  
Financial Crisis ◽  
Commercial Bank ◽  
Low Income ◽  
Financial Stability ◽  
High Income ◽  
Financial Inclusion ◽  
Low Income Countries ◽  
Service Development ◽  
Middle Income ◽  
Middle Income Countries

Financial inclusion has become a main key for financial service development yet this development should also consider financial stability. The Asian financial crisis 1997 and the Global financial crisis 2008 gave us lesson of how important to maintain financial stability. Thus, the development of the financial services sector through financial inclusion is expected to impact the financial stability of the countries income levels. This study aims to determine the effect of financial inclusion relation to the financial stability in many countries based on their level of income during 2004-2014. This study used unbalanced panel data regression with fixed effect model. The results showed that financial inclusion proxied by commercial bank outstanding deposit has positive yet unsignignificant effect on financial stability for high income and upper-middle income countries, and has negative significant effect for lower-middle income and low income countries. Meanwhile, financial inclusion proxied by commercial bank outstanding loan has negative significant effect on financial stability in high income and upper middle income countries. This result is the opposite of lower-middle income which showed positive yet unsignificant effect, and positive significant impact for low  income countries

scholarly journals Measuring Systemic Risk in the Financial Sector

2014 ◽  
pp. 117-125
Author(s):  
M. A. Shchepeleva
Keyword(s):  
Risk Assessment ◽  
Systemic Risk ◽  
Financial Services ◽  
Financial Stability ◽  
Quantitative Methods ◽  
Financial Sector ◽  
Negative Consequences ◽  
Exogenous Shock ◽  
Qualitative Approaches ◽  
Holistic Understanding

The article discusses quantitative methods of assessing systemic risk of the financial sector and the possibilities of their practical application. Systemic risk, which is manifested in the failure of financial services provision and deterioration of the financial system, is a complex concept that can be realized in several forms: the risk of infection, exogenous shock, leading to a simultaneous decline in all financial institutions, and the risk of «financial fragility accumulation". The main causes of the imbalances in the system are unjustified loose standards of risk assessment during economic booms, procyclical behavior of economic agents and asymmetric information. The spread of the risk is associated with the financial accelerator mechanism. Realization of systemic risk in the financial sector leads to serious negative consequences for the real sector not only in the national economy, but also abroad. Quantitative methods of risk assessment provide national authorities with useful information for macroprudential supervision aimed at maintaining financial stability. At the same time it is very important that the data used by the regulator is accurate and reliable. After 2008 crisis, a large number of qualitative approaches appeared, but they all reflect only certain aspects of the risk. The article focuses on stress tests, early-warning indicators, network models, VaR- methods and specific indices. According to research, different assessment methods produce different results. In addition, due to insufficient statistical database existing models are good at predicting crises with hindsight, but cannot identify stressful episodes ex-ante. Thus model results should be treated with caution and require further scrutiny. To get a holistic understanding of the systemic risk regulating authorities should apply different quantitative methods together with qualitative approaches and expert judgement.

scholarly journals Sustainability and risk assessment matrix (SRAM): pathway to water security

2020 ◽  
Vol 20 (7) ◽  
pp. 2928-2940
Author(s):  
Enovwo Odjegba ◽  
Grace Oluwasanya ◽  
Adebayo Sadiq ◽  
Gail Brion
Keyword(s):  
Risk Assessment ◽  
Water Supply ◽  
Low Income ◽  
Sustainability Assessment ◽  
Water Security ◽  
Low Income Countries ◽  
Water Supply Systems ◽  
Sustainable Water Supply ◽  
Assessment Matrix ◽  
Very High

Abstract Water security, as a Sustainable Development Goal, ensures that sustainable water supply is consistently available to every individual. A water supply systems (WSS) assessment matrix was designed as a tool for assessing WSS in low-income countries; with selected urban, peri-urban and rural Nigerian communities as case studies. Sustainability of the WSS was assessed through established criteria against five sustainability factors. Sanitary surveys were conducted to evaluate the risks associated with the WSS using sanitary inspection forms, through which the sanitary risk scores (SRS) were derived. For sustainability, the WSS were ranked as Very High, High, Medium and Low Sustainability, and for SRS as Very High, High, Intermediate and Low Risk. A Sustainability and Risk Assessment Matrix (SRAM) was designed using sustainability evaluation and risk assessment for the WSS. The WSS in the rural areas are more ‘Secure’ than those in urban and peri-urban towns, and boreholes are more ‘Secure’ than hand-dug wells, but none of the public water points are scored ‘Secure’. The paper concludes that SRAM provides a cost-effective method of classification and may serve as a pre-water quality and source sustainability assessment tool, especially in low-income countries, as part of the measures to achieve water security.

Enhancing Financial Sector Surveillance in Low-Income Countries - Background Paper

Policy Papers ◽  
2012 ◽  
Vol 2012 (25) ◽  
Author(s):  
Keyword(s):  
Policy Implementation ◽  
Financial Markets ◽  
Exchange Rates ◽  
Low Income ◽  
Financial Stability ◽  
Low Income Countries ◽  
Fiscal Policies ◽  
Financial Systems ◽  
Liquidity Management ◽  
Indirect Measures

This note provides an overview of the literature on the challenges posed by shallow financial systems for macroeconomic policy implementation. Countries with shallow markets are more likely to choose fixed exchange rates, less likely to use indirect measures as instruments of monetary policy, and to implement effective counter-cyclical fiscal policies. But causation appears to work in both directions, as policy stances can themselves affect financial development. Drawing on recent FSAP reports, the note also shows that shallow financial markets tend to increase foreign exchange, liquidity management, and concentration risks, posing risks for financial stability

scholarly journals Rising External Debt Burden, Increase Financial Stability Risk; the Need for Fiscal Adjustment in Nigeria

2021 ◽  
pp. 33-43
Author(s):  
Adamgbo, Suka ◽  
Kenn-Ndubuisi, Juliet Ifechi* ◽  
Toby, J. Adolphus
Keyword(s):  
Low Income ◽  
Financial Stability ◽  
External Debt ◽  
Low Income Countries ◽  
Fiscal Responsibility ◽  
Debt Sustainability ◽  
Debt Burden ◽  
Fiscal Adjustment ◽  
Analysis Technique ◽  
The Imf

The study examines the rising external debt burden, increased financial stability risk; the need for fiscal adjustment. Given that economic sustainability is the prime desire of every economy and considering the continuous accumulation of external borrowings. Our main focus is to investigate the fiscal vulnerability and debt sustainability position of the Nigerian economy. To find out whether the country’s present fiscal position is sustainable? Has the substantial external borrowings in the last two decades of uninterrupted democratic rule significantly supported the growth path of the Nigeria economy? If not, there is need for fiscal adjustment. Our period of investigation spans from 1999 to 2019. Data estimated using the time series based from CBN, Federal Ministry of Finance, IMF/World Bank publications. In analyzing the country’s debt burden/vulnerability, we applied the IMF debt burden indicators under the debt sustainability framework (DSF) for low income countries. Using the descriptive statistic, the study also employed the regression analysis technique to exploits the cause and effect relationship between the nation’s present debt stock, debt servicing obligation and the nominal as well the real economic growth rate. Our findings revealed the following; (i) using the percentile analysis and comparing it with the major debt sustainability bench marks under the IMF/Work Bank specifications, the country’s debt sustainability position was very negligible. The Nigerian situation shows debt sustainability position that fell below the bench marks (ii) the results of our finding also indicates a negative statistically significant relationship that exists between debt stock, servicing payment and both the nominal and real GDP. Based on our results, we concluded that the present fiscal vulnerability position of the country if not checked or curtailed through fiscal adjustment would amount to increasing the financial stability risk capable of causing deterioration in the functioning of the economy. We therefore, suggest amongst other measures that all should be aimed at improving and or enhancing monetary restrains, debt contraction restrains as well evolving and improving existing rules toward achieving fiscal responsibility and discipline.

scholarly journals DETERMINANTS OF PUBLIC DEBT IN LOWER MIDDLE INCOME COUNTRIES

2018 ◽  
Vol 34 (3) ◽  
Author(s):  
Vu Duc Thuan
Keyword(s):  
Interest Rates ◽  
Low Income ◽  
Public Debt ◽  
Financial Stability ◽  
Trade Openness ◽  
Low Income Countries ◽  
Macroeconomic Factors ◽  
Middle Income ◽  
The Public ◽  
Middle Income Countries

The ever increasing of public debt has been affecting the financial stability of both high and low income countries for years and is a considerable subject to various author all around the world. The aim of this study is to understand which all factors influence the public debt in lower middle-income countries using DGMM regression method. With the dataset of 40 countries during the 1996-2015, the study provides empirical evidences on the role of macroeconomic factors on changes of public debt in lower middle-income countries, including trade openness, interest rates, budget surplus, inflation, economic growth, foreign direct investment, infrastructure, scale of the financial system. However, the unemployment rate does not have any impact whatsoever on debt to GDP ratios of these countries for over the period.

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