The Problem of Non-payment and Banking Sector Development in Russia

The authors point out that the local market crisis - on the USA substandard loan market - has led to the uncertainty of the world financial market. It has caused the growing demand for liquidity in the framework of the world financial system. The Russian banking sector seems to be more stable under negative changes than banking systems of other emerging markets. At the same time one can assume that the crisis will become the factor of qualitative shift in the character of the Russian banking sector development - the shift from impetuous to more balanced growth.

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Banking Sector Development, Inflation and Economic Growth in Asian Countries: A Panel Causality and Co-Integration Approach

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v8i4.14046 ◽

2018 ◽

Vol 8 (4) ◽

pp. 384

Author(s):

Muhammad Imran Nazir ◽

Rehana Tabassam ◽

Ifran Khan ◽

Muhammad Rizwan Nazir

Keyword(s):

Economic Growth ◽

Banking Sector ◽

Vital Role ◽

Least Square ◽

Policy Implications ◽

Asian Countries ◽

Ordinary Least Square ◽

Long Run ◽

Banking Sector Development ◽

Integration Test

This study investigates the causal relationship between banking sector development, inflation, and economic growth for six Asian countries (Bangladesh, China, India, Malaysia, Pakistan and Sri Lanka) over the period of 1970-2016. Using a Pedroni panel, Kao co-integration test, Panel Granger causality-based Error Correction Model, Dynamic ordinary least square (DOLS), and Fully modified ordinary least square (FMOLS), this study finds that the development of the banking sector generally has a positive relationship with economic growth in the long-run. This results show that in the long-run, monetary policy play a vital role in the economic growth. This study also confirmed the response causality between the indicators of banking sector development and economic growth. Based on the empirical findings, this research provides important policy implications to the banking sector and economic supervisory bodies in order to achieve the long run economic growth.

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Banking sector development and foreign direct investment. A case of Botswana

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgcv4i3art5 ◽

2014 ◽

Vol 4 (3) ◽

pp. 44-50

Author(s):

Kunofiwa Tsaurai

Keyword(s):

Host Country ◽

Banking Sector ◽

Fdi Inflows ◽

The Third ◽

Long Run ◽

Banking Sector Development ◽

The Subject ◽

Causality Relationship ◽

The Moment ◽

The Relationship

The study investigates if there is a causality relationship between banking sector development and FDI inflows in Botswana. Though quite a number of authors have written on the subject, there appears to be no consensus on the directional causality between banking sector development and FDI inflows into the host country. At the moment, three dominant perspectives exist regarding the relationship between banking sector development and FDI inflows into the host country. The first perspective says that banking sector development attracts FDI inflows into the host country. The second perspective suggests that there is a positive feedback effect between banking sector development and FDI inflows whilst the third perspective maintains that there is no direct causality relationship between the two variables. The results from this study are consistent with the third perspective that says there is no direct causality relationship between banking sector development and FDI net inflows. This confirms that the long run relationship between banking sector development and FDI net inflows is an indirect one and the two set of variables affect each other indirectly through other factors in Botswana.

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Domestic banking sector development and cross border mergers and acquisitions in Africa

Review of Development Finance ◽

10.1016/j.rdf.2012.01.003 ◽

2012 ◽

Vol 2 (1) ◽

pp. 32-42 ◽

Cited By ~ 10

Author(s):

Elikplimi K. Agbloyor ◽

Joshua Abor ◽

Charles K.D. Adjasi ◽

Alfred Yawson

Keyword(s):

Mergers And Acquisitions ◽

Banking Sector ◽

Cross Border ◽

Banking Sector Development

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The macroeconomic drivers of stock market development: evidence from Hong Kong

Journal of Financial Economic Policy ◽

10.1108/jfep-11-2018-0163 ◽

2019 ◽

Vol 12 (2) ◽

pp. 185-207 ◽

Cited By ~ 1

Author(s):

Sin-Yu Ho ◽

Nicholas M. Odhiambo

Keyword(s):

Hong Kong ◽

Stock Market ◽

Inflation Rate ◽

Banking Sector ◽

Trade Openness ◽

Market Development ◽

Content Type ◽

Stock Market Development ◽

Banking Sector Development ◽

Short Run

Purpose The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates the impact of banking sector development, economic growth, inflation rate, exchange rate, trade openness and stock market liquidity on stock market development. Design/methodology/approach This paper uses quarterly time-series data covering the period 1992Q4-2016Q3, which have been obtained from various reliable sources. The study uses the autoregressive distributed lag bounds testing procedure to identify both the long- and short-run macroeconomic drivers of stock market development in Hong Kong. Findings We find that banking sector development and economic growth have positive impacts on stock market development, whereas the inflation rate and the exchange rate have negative impacts on stock market development both in the long and short run. In addition, the results show that trade openness has a positive long-run impact but a negative short-run impact on stock market development. Originality/value Despite the phenomenal growth of stock market in Hong Kong, there are, to the best of the authors’ knowledge, no relevant studies on the macroeconomic drivers of stock market development in Hong Kong. Therefore, this paper endeavours to enrich the literature by examining the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3.

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Trade openness, internet finance development and banking sector development in China

Economic Modelling ◽

10.1016/j.econmod.2019.12.008 ◽

2020 ◽

Vol 91 ◽

pp. 670-678

Author(s):

Junhui Fu ◽

Yufang Liu ◽

Rongda Chen ◽

Xiaojian Yu ◽

Wen Tang

Keyword(s):

Banking Sector ◽

Trade Openness ◽

Banking Sector Development ◽

Finance Development ◽

Internet Finance

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Do banking sector concentration, banking sector development and equity market development influence firms’ financial flexibility? Evidence from Pakistan

South Asian Journal of Business Studies ◽

10.1108/sajbs-01-2019-0009 ◽

2019 ◽

Vol 9 (1) ◽

pp. 115-129 ◽

Cited By ~ 1

Author(s):

Yasin Mahmood ◽

Maqsood Ahmad ◽

Faisal Rizwan ◽

Abdul Rashid

Keyword(s):

Banking Sector ◽

Developing Economies ◽

Bank Lending ◽

Equity Market ◽

Debt Financing ◽

Market Development ◽

Financial Flexibility ◽

Content Type ◽

Banking Sector Development ◽

The Impact

Purpose The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF). Design/methodology/approach The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development and corporate FF; hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt financing. Practical implications The banking sector is an important provider of capital to business entities. A concentrated banking system discourages the provision of capital to firms; hence regulators have to take appropriate measures to resolve the problem of a reduced supply of capital. Banking sector development facilitates the provision of capital; further development may reduce bank lending rates to firms. Equity market development positively affects FF; hence, firm managers can use equity financing to resume FF. By following pecking order theory, managers use internal sources to finance value-maximizing investment projects, debt and issue shares as the last choice to get financing. When borrowing capacity is depleted, managers can obtain further funds by issuing stocks. Originality/value FF is an emergent area of research in advanced countries, while in developing economies, it is in the initial stages. Little work is available in this area to find the impact of banking sector concentration, banking sector development and equity market development, therefore, this study fills this gap in the existing literature.

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Russian banks will need tight control and pruning

Emerald Expert Briefings ◽

10.1108/oxan-db209942 ◽

2016 ◽

Keyword(s):

Banking Sector ◽

Foreign Currency ◽

Banking System ◽

Tight Control ◽

Content Type ◽

Perceptions Of Risk ◽

Banking Sector Development ◽

Foreign Loans ◽

The Cost ◽

Systemically Important Banks

Subject Measures to keep Russia's banking system sustainable. Significance In 2015, the majority of Russian banks recorded operating losses, with the exception of Sberbank. Banks had to repay foreign currency-denominated loans whose cost rose as the ruble fell in value. Access to further foreign loans was severely constrained by Western sanctions, the cost of domestic borrowing was high and consumers' real incomes declined. The Central Bank of Russia (CBR) continues to support the sector by offering refinancing facilities and capital support for systemically important banks while shutting down banks engaged in high-risk activity. Impacts Western sanctions continuing into 2017 will worsen investor perceptions of risk. CBR intervention will avoid a collapse in depositor confidence. Geopolitical isolation will limit banking sector development.

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BANKING SECTOR LIBERALIZATION AND ECONOMIC GROWTH: CASE STUDY OF PAKISTAN

Journal of Business Economics and Management ◽

10.3846/16111699.2013.804874 ◽

2016 ◽

Vol 17 (1) ◽

pp. 125-139 ◽

Cited By ~ 1

Author(s):

Najia SAQIB

Keyword(s):

Economic Growth ◽

Banking Sector ◽

Time Series Data ◽

Series Data ◽

Omitted Variables ◽

Financial Systems ◽

Long Run ◽

Banking Sector Development ◽

The Impact

Economic theory suggests that sound and efficient financial systems channel capitals to its most productive uses are beneficial for economic growth. Sound and efficient financial systems are especially important for sustaining growth in developing countries. This paper examines the impact of banking sector liberalization on long-term economic growth in Pakistan by using a time series data for the period 1971–2011. The results show that there exist a significant positive long run relationship between banking sector development and economic growth in the country. The sensitivity analysis also shows that the relationship remain positive and significant no matter what combination of the omitted variables are used in the basic model. Thus, our findings support the core idea that banking sector development stimulates long term economic growth in a country.

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