Concentrated Commonalities and Systemic Risk in China’s Banking System: A Contagion Network Approach

The quality of the loan portfolio in Albanian banking system is facing many obstacles during the last decade. In this paper we look at possible determinants of assets quality. During the recent financial crisis commercial banks were confronted with deteriorating asset quality that threatened not only the banking industry, but also the stability of the entire financial system. This study aims to examine the correlation between non-performing loans and the macroeconomic determinants in Albania during the last decade. NPLs are considered to be of a high importance as they represent the high risk exposure of banking system. A solid bank with healthy assets increases the market efficiency. Our approach is based on a panel data regression analysis technique from 2005-2015. Within this methodology this study finds robust evidence on the existing relationship between lending interest rate, real GDP growth and NPLs. We expect to find a negative relationship between lending interest rate and asset quality. Further we assume an inverse relationship between GDP growth and non-performing loans, suggesting that NPLs decrease if the economy is growing. Furthermore this study proposes a solution platform, which looks deeper into the possibility of creating a secondary active market for troubled loans, restructuring the banking system or implementing the Podgorica model. This research paper opens a new lieu of discussion in terms of academic debates and decision-making policies.

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Central Banking System - A Bench Marking Study of India and Sweden

SSRN Electronic Journal ◽

10.2139/ssrn.1081184 ◽

2008 ◽

Author(s):

S.K. Kumar Rai

Keyword(s):

Banking System ◽

Central Banking ◽

System A

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Systemic Risk in the European Banking System

SSRN Electronic Journal ◽

10.2139/ssrn.1102001 ◽

2008 ◽

Author(s):

Andrea Cipollini

Keyword(s):

Systemic Risk ◽

Banking System ◽

European Banking

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A Digital Currency Architecture for Privacy and Owner-Custodianship

Future Internet ◽

10.3390/fi13050130 ◽

2021 ◽

Vol 13 (5) ◽

pp. 130

Author(s):

Geoffrey Goodell ◽

Hazem Danny Al-Nakib ◽

Paolo Tasca

Keyword(s):

Systemic Risk ◽

Banking System ◽

Developed Countries ◽

Fractional Reserve Banking ◽

Point Of Sale ◽

Digital Currency ◽

Fractional Reserve ◽

Banking Relationships ◽

Reserve Banking ◽

Payment Mechanisms

In recent years, electronic retail payment mechanisms, especially e-commerce and card payments at the point of sale, have increasingly replaced cash in many developed countries. As a result, societies are losing a critical public retail payment option, and retail consumers are losing important rights associated with using cash. To address this concern, we propose an approach to digital currency that would allow people without banking relationships to transact electronically and privately, including both e-commerce purchases and point-of-sale purchases that are required to be cashless. Our proposal introduces a government-backed, privately-operated digital currency infrastructure to ensure that every transaction is registered by a bank or money services business, and it relies upon non-custodial wallets backed by privacy-enhancing technology, such as blind signatures or zero-knowledge proofs, to ensure that transaction counterparties are not revealed. Our approach to digital currency can also facilitate more efficient and transparent clearing, settlement, and management of systemic risk. We argue that our system can restore and preserve the salient features of cash, including privacy, owner-custodianship, fungibility, and accessibility, while also preserving fractional reserve banking and the existing two-tiered banking system. We also show that it is possible to introduce regulation of digital currency transactions involving non-custodial wallets that unconditionally protect the privacy of end-users.

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Systemic risk in the European sovereign and banking system

Quantitative Finance ◽

10.1080/14697688.2016.1205212 ◽

2016 ◽

Vol 17 (4) ◽

pp. 633-656 ◽

Cited By ~ 7

Author(s):

Simon Xu ◽

Francis In ◽

Catherine Forbes ◽

Inchang Hwang

Keyword(s):

Systemic Risk ◽

Banking System

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