Central Banking and Macro-financial linkages

Macro-prudential analysis is a relatively new atea infinancial system supervision. The paper presents a synopsis of the main attributes of the area, noting that one of its main features is that it adds an element of dynamism to the existing framework of supervision. Based on these factors several lessons have been druwn which should have a bearing on establishing the mocro-prudential analytical framework in Zambia. In conclusion, it is noted that being a new area, there is still a lot of work that needs to be done in order to have an adequate analytical frameworkinplace.

En este ensayo se explican y analizan las transferencias hechas por el Banco de México al Gobierno Federal, en tanto se ha tratado de transferencias de ganancias no existentes. Se explica el problema con un símil, usando como ejemplo un valioso jarrón. En la segunda parte se discute la situación fiscal durante este sexenio, lo que explica la necesidad de recurrir a una operación tan poco ortodoxa; finalmente, en la tercera parte se insiste en un manejo adecuado de esas ganancias no realizadas, en fortalecer la autonomía del banco central y en cambiar la definición actual del excedente de operación.

This paper tries to explore the challenges of the existing corporate governance analyzing the existing policy, ownership structure and Bank performance. In doing so, this paper attempts to investigate the pattern of ownership composition and ownership concentration scenario towards sponsorship in Banks, the relationship between the ownership structure, firm performance and finally, the impact of ownership structure on bank's performance. Besides, it tries to investigate the main causes of banks' poor performance, financial scams, Non Performing Loans (NPLs) regarding the recent crisis understanding the feedback of bankers, depositors and stakeholders. In this aspect, how corporate governance is practiced through ownership structure as well as how its loan policy is influenced by different ownership pattern is analyzed through a survey result conducted in State Owned Commercial Banks (SOCBs) and Private Commercial Banks (PCBs) in Bangladesh. Thus, main features of the existing corporate governance are identified and some action plans are suggested in this paper to restore the sound corporate governance in the banking sector of Bangladesh.

В данной монографии делается анализ социально-экономических проблем и вызовов с которыми столкнулся Кыргызстан с точки зрения выбора валютного режима. Как денежная система во главе с Национальным банком влияет на развитие экономики и жизнь граждан. Как граждане страны расплачиваются за системные ошибки денежной системы, и каким образом выбор денежной системы программирует экономическую модель развития. Автор предлагает новую концепцию валютного режима, основанного на золотовалютном стандарте.

The new designs for the US Paper Money between 1914 and 1918: Federal Reserve Notes and Federal Reserve Bank Notes during the Word War I. Contents:
BEFORE THE FED, THE FED, THE NEW NOTES, 12 BANK SEALS, THE NEW TRADITION, 2 TREASURY SEALS, DATES, FIVE-DOLLAR BILL, TEN-DOLLAR BILL, TWENTY-DOLLAR BILL, FIFTY-DOLLAR BILL, ONE HUNDRED-DOLLAR BILL, ONE-DOLLAR BILL, TWO-DOLLAR BILL, $500 BILL, $1,000 BILL, $5,000 BILL, $10,000 BILL, 4 AUTHORIZATIONS ON THE “FED” PAPER MONEY (1914-1918), FINAL WORDS.

*Final Paper of Level 5 (UG 2nd year) module: Political Theory of Finance. Mark: 68 (high 2:1)*

Delegation of monetary authority to the central bank is perceived to be credible only when political independence is retained, preventing ‘political business cycle’ to influence monetary policy process. However, the rise of macro-prudentialism and central banks’ increasing use of unconventional monetary policies such as Quantitative Easing (QE) and Permanent Open Market Operations (POMO) worldwide following the 2008 financial crisis invited heated debate over the legitimacy of the power exercised by unelected central bankers, calling central banks to be subject to greater democratic accountability. This essay argues that central banks should be subject to more democratic accountability by incorporating precise rules of monetary policy within party manifestoes during general elections, so that central banks will be equipped with popular mandate to deliver monetary policies whilst their performance being checked by the intermediary of elected government. This essay commences as follows. Section I outlines the powers of central banks and present the current debates surrounding their monetary authority. Section II discusses whether political independence of central banks remains intact with democratic principles followed by reform proposal to improve democratic accountability of the central bank.

Prompted by technological advances and a decline in cash usage, many Central Banks are investigating whether it would be possible to issue a digital complement to cash, a so-called Central Bank Digital Currency (CBDC). Despite ongoing research and occasional pilots, Central Banks have shied away from introducing a CBDC for public use. Even though CBDCs would have the potential to counteract some of the problems that could arise for the payment system in the future when the use of cash is rapidly declining, they also present significant risks for financial stability.

This article contributes to the discussion by setting out a CBDC framework and formulating broad design principles for CBDC in line with the central bank´s function as Lender of last Resort (LOLR). The attributes and functionality of a CBDC are highly determinative of the architectural design and technical solution chosen, particularly in the context of LOLR. Therefore, we argue in favour of a solid coin for e-emergency liquidity assistance, available 24 hours a day and seven days per week, anonymous, interest-bearing and unlimited, to prevent bank runs and restore financial stability in times of financial distress.

This study applied the Index of Institutional Quality (IQ) methodology to measure the level of independence of the Reserve Bank of Malawi (central bank) and examine its impact on inflation. The IQ methodology assesses independence of central banks based on their actual practices. The methodology is suitable for developing countries whose practices do not fully conform to the laws of Banks that are in place. The study finds that the average independence index of the Reserve Bank of Malawi (RBM) is 15.1, which is more than half below the total index value of 36. This clearly shows that the RBM is not convincingly independent. Although the results show an above-average value for index of monetary policy independence, indications are that the RBM is not free from political pressures as evidenced by below-average values for indices of political and fiscal independence. Using Ordinary Least Square (OLS), the results further show that the low degree of independence by the RBM has contributed to high inflation in Malawi.

(Russian and English version)Представленная монография является фундаментальным теоретическим исследованием правового регулирования государственного финансового планирования в системе стратегического планирования в Российской Федерации. Россия одна из первых в мире подошла к такому уровню развития стратегического планирования, который позволяет придать ему законодательную форму. Монография исследует теоретические основы этого авангардного явления применительно к государственному финансовому планированию.
Монография нацелена на формирование системного теоретического подхода к правовому регулированию планирования государственных финансов. В исследовании реализован комплексный междисциплинарный подход: обобщены достижения экономической, политической и иных социальных наук по вопросам государственного финансового планирования и выявлены наиболее значимые для правового регулирования выводы и положения.
Автор обращается к проблеме соотношения права, политики и иных средств регулирования планирования в сфере государственных финансов. Подробно рассмотрен механизм правового регулирования государственного финансового планирования. Особое внимание в монографии уделяется понятию финансово-плановых актов, финансовых правоотношений, проблемам правоприменения. Проанализированы особенности и единые закономерности правового регулирования государственного финансового планирования в разных сферах финансов: в бюджетной сфере, сферах государственных доходов и расходов, на финансовом рынке.
Монография будет интересна для научных работников, лиц, занимающихся общественно-политической деятельностью, адвокатов, практикующих юристов и экономистов, государственных и муниципальных служащих, судей и арбитров, преподавателей, аспирантов, студентов, обучающихся по юридической и экономической специальностям.
This monograph is a fundamental theoretical study of the legal regulation of public finance planning in the system of strategic planning in Russian Federation. Russia is one of the fist countries in the world where strategic planning development reached the level of legislative regulation. The monograph presents the theoretical basis of this forefront phenomenon with special accent on the state planning in the public finance.
The monograph aims at forming the theoretical systematic approach to the legal regulation of public finance planning. This research exercise integrative interdisciplinary approach: the achievements of economy, politics and other social sciences on the public finance planning are accumulated and the most important solutions and conclusions for legal regulation are identified.
Author refers to the correlation of law, politics and other social regulatory means for planning in public finance. The mechanism of public financial planning regulation is scrutinized. Special attention is paid to the notion of financial plans as legal acts, legal relations in the field of public finance planning, issues of law enforcement. The monograph presents analysis of the particularities and general consistent patterns of the legal regulation in the different fields of finance: budget, state revenues and public expenditures, as well as in the financial market field.
This research shall be interesting for academics, social and political leaders, advocates, other practitioners in law and economy, state and municipal officials, judges and arbitrators, professors, post-graduate students and researchers, students in law and economics.

The local and small investors, especially the farmers and the tiny entrepreneurs need credit at affordable cost. In the absence of such a credit facility, the farmers cannot take advantage of the rich natural resources such as abundant water and rich and fertile soils. The overall bank credit scenario remained dismal and unchanged in the state. The farmers in the state have very little amount of loans from the banks. The density of SHGs institutions in the state is quite low compare to national average and southern states. As on March 2011, while 53.4% of total rural households at all India level are covered in SHGs, only 15.3% total rural households in Bihar have been included in SHGs. The bank credit linkages are quite low, especially in terms of the number of SHGs getting loans from banks. Clearly there is a need for widening and deepening of the SHG movement in the state. It is heartening to note that state government is committed to widen and deepen the scope of SHGs in the state.

The book describes the main theoretical aspects of the nature of monetary-credit relations of society in transition period and the role of the banking system as the main institutional mechanism that ensures practical organization of this form of relationship between the economic agents. There is the analysis of the basic elements of interaction between market players in the monetary sphere - the macro and microeconomic levels - in terms of the implementation of monetary policy by the central bank, ensuring regulation of the credit activity of commercial banks for efficient proceedings economic activity in all sectors. The book considers a number of practical recommendations to improve specified aspects of the banking system in the field of monetary relations.

Central banks’ economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much of the enhanced significance of central banks is due to their lender ‐ of ‐ last ‐ resort and market ‐ maker ‐ of ‐ last ‐ resort roles, providing liquidity to financially distressed and illiquid financial institutions and sovereigns. Supervisory and regulatory functions – often deeply political, have been heaped on central banks. Central bankers also increasingly throw their weight around in the public discussion of and even the design and implementation of fiscal policy and structural reforms ‐ areas which are way beyond their mandates and competence.
In this lecture I argue that the preservation of the central bank’s legitimacy requires that a clear line be drawn between the central bank’s provision of liquidity and the Treasury’s solvency support for systemically important financial institutions. All activities of the central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must become more accountable by increasing the transparency of their lender ‐ of ‐ last ‐ resort and market maker ‐ of ‐ last resort activities. Central banks ought not to engage in quasi ‐ fiscal activities. Finally, central banks should stick to their knitting and central bankers should not become participants in public debates and deeply political arguments about matters beyond their mandate and competence, including fiscal policy and structural reform.

The New Approaches to Economic Challenges (NAEC) initiative was established to distil lessons from the Global Financial Crisis and now the systemic crises sparked by the COVID-19 pandemic. This book publishes short summaries of a diverse range of thinking and proposals from a prestigious series of experts. NAEC invited them to share their expertise with those who wish to learn more about the financial system from those at its heart. They debate the theory and models of the financial system as well as the role of its different component parts, such as currency, insurance or asset management and how they interact. And they offer advice on how financial policy can contribute to making the financial system more resilient.

The issuance of a Central Bank Digital Currency (CBDC) is a very important step towards a fully digital economic environment and the consequences of such a direction are under debate by many policymakers around the world. There is a clear interest within the space as governments around the world are exploring the viability of a digital currency and according to the latest Bank for International Settlements (2021) report: 86% of the world's central banks have begun to conceptualize and research the potential of CBDC, 60% are developing Proof-of-Concepts (PoC) and 14% are implementing pilot projects. This paper provides a comprehensive overview for finance and investment participants about the topic of Central Bank Digital Currencies. The recent international exploration into the future of Central Bank money is complex as it is interconnected with two equally dynamic entities: Digital Currencies and Blockchain/Distributed Ledger Technology.

The intellectual justification for modern central banking, time-inconsistency, celebrates its 40 th anniversary in 2017 alongside the Cambridge Journal of Economics. However, the key progeny of the time-inconsistency literature, central bank independence, has fundamental flaws that have been thus far neglected in mainstream research. In the first instance, the argument for independence relies on a utilitarian rather than institutional analysis, one that neglects the genesis of central banks and their relation to other institutions within a country. Secondly, central bank independence neglects the complex interdependencies of the global monetary and financial system. Applying an institutional lens to the concept of central bank independence, I conclude that " independence " fails under the reality of globalization as much as it does in a domestic context. With central banks reliant on all manner of political institutions, they are never really independent operationally or in terms of policy.

It is estimated that small businesses (SMEs) employ 22% of the adult population in developing countries. United Nations Industrial Development Organisation (UNIDO) estimates that SMEs represent over 90% of private business and contribute to more than 50% of employment and of gross domestic product (GDP) in most African countries (UNIDO, 1999). A recent study conducted by Abor and Quartey (2010) estimates that 91% of formal business entities in South Africa are SMEs, and that these SMEs contribute between 52 to 57% to GDP and provide about 61% to employment.

The main objectives of the study are to identify opportunities and services of Seda in the SMEs within the plastics and chemical sector, and to develop a strategy to seize such opportunities in order to create new and support existing enterprises with potential to create jobs.

The study methodologies employed in this study include both secondary and primary research, which also uses quantitative and qualitative research methods.The study also noted that there are a number of organisations, from both the private and public sector, who offer BDS services to the SMME sector. There are currently a large number of government funded programmes which provide either financial support or BDS, or both. It was however noted that there is low take up of both financial and BDS services.

The Declaration consolidates the recommendations of the first and the second Round Tables to develop principled guidance that promotes the fundamental principles and rights enshrined in the international, regional and national laws and regulatory frameworks, and integrates the Resolutions of the First Round Table on cryptocurrency regulation.

Arguments for and against Central Bank Independence, assessed in the context of the European Central Bank. Emphasis on implications for democracy. The article was written before the ECB started operating, but some of its arguments may have more relevance today than when it was written.

Central Banks aim to attain and maintain price stability, through facilitating a wide range of instruments freely, which is called Central Bank independence, with the principle of accountability. In this study, we try to ascertain the relationship between Central Bank actions and the price stability, so called the inflation rate. However, in the literature, there is only one objective scale to be found to evaluate Central Banking success, namely Central Bank Financial Strength. Central Bank Financial Strength and all balance sheet components, scrutinized to show the relationship between them, studying on the Central Bank of the Republic of Turkey, which is supposed to be one of most successful Central Banks through the financial crisis 2008 and 2011. The outcome shows that CBFS has no correlation between price stability, moreover there isn’t any meaningful relationship between any other metric from balance sheet and the inflation rate.

Monetary cooperation at the multilateral level has been challenged by a shift of global economic power. Increasing multipolarity combined with the inertia of the International Monetary Fund (IMF) and harder problems, related to global capital mobility, are leading to a more fragmented and diversified international monetary system. They are the main drivers of gridlock in global monetary affairs. As a pathway through the deadlock in monetary governance, emerging countries in Asia and Latin America invested in alternatives to multilateral institutions, through the formalization of regional and bilateral monetary arrangements based on currency swaps. They also challenged the key functions of the US dollar as the major currency of the Bretton Woods system. Despite their fragmented structure, these bilateral and regional arrangements have a multilateral intent. However, up to present, the initiatives seem to be mainly short-term responses to gridlock. To go beyond, two pathways are emerging as institutional responses and they are led by: technical groups with effective processes (central banks) and an autonomous and adaptative international institution (the Fund).

Este libro analiza más de dos mil quinientas cartas de la factoría en Galicia del Banco Nacional de San Carlos creado por Carlos III en 1782, que se conservan en el Archivo del Banco de España. Considerado como el primer instituto bancario destinado a coordinar la circulación monetaria del país, en esta investigación se trazan las rutas del dinero de más de trece mil transferencias por letras de cambio. Si bien la mayoría tenían por destino conectar el puerto gallego de A Coruña con la capital de la Monarquía Hispánica en Madrid, muchas otras se reparten entre los principales centros financieros de la Europa del momento: París, Londres, Ámsterdam, etcétera. La oficina gallega del Banco de San Carlos tendrá un papel destacado en el negocio de la exportación de la plata hispánica gracias a un acuerdo desconocido hasta el momento entre el banco y los comerciantes para transferir los caudales americanos trasladados por los Correos Marítimos.

Frente al desempeño de la Caja de Cádiz, que merced a la importancia comercial de su plaza y a la naturaleza de su burguesía ocupa otro lugar en la estructura del San Carlos, A Coruña parecía la oficina fiel, tradicional y conservadora que primero cumplió un rol relevante en la extracción de pesos fuertes y luego pasaría a cubrir la liquidez de la caja central de Madrid. En último término la historia del Banco de San Carlos en Galicia puede ser observada desde dos prismas complementarios. De un lado, como la expresión institucional más acabada de un proceso de transformación de Galicia en una periferia financiera, no solo de la Monarquía Hispánica sino del sistema monetario europeo, proceso iniciado con las descargas de flotas durante la Guerra del Asiento (1743-1749) y confirmado con la designación de los Correos Marítimos (1764). Por otro, como observatorio regional del hundimiento del Antiguo Régimen monetario, desde un periodo de crisis de acumulación y aumento de las remisiones de caudales de Indias por motivos bélicos y comerciales bajo influencia francesa, hasta el colapso de la hacienda hispánica en un periodo donde se fragua la futura hegemonía británica.

PARA BAZI ANALİZİ VE PARASAL KONTROL MODEL DENEMESİ
Dr Haluk F GURSEL

Bu metin, bugün dahi gecerli olan ve zaman içerisinde daha da gelistirilmis bulunan, örneğin halen Uluslararası Para Fonu (IMF) tarafından kullanılan, para bazı analizi ve parasal kontrol modeli üzerine yapilmis ilk araştırmalardandır.

Çalısmada para bazı yaklaşımı, parasal akımların
kontrolü ve ayrıca para bazı, para arzı ile parasal gelir arasındaki ilişkiler
açılarından incelenmektedir. Bunların yanında, gelişmekte olan ülkelerdeki para politikasi sorunlari da gözden geçirilmektedir.
Çalısmada bir bölüm de gelişmekte olan ülkeler veri uygulamaları ve
analizine ayrılmıştır.

Gelişmekte olan ülkelerde, çok sayıda değişkende benzer eğilimler olmasına karşılık her ülkenin birbirinden farklı karakteristikleri, ekonomik ve sosyal altyapıları olduğu gözlemlenmektedir.

Bunun sonucu olarak, çözüm olanaklari geniş ölçüde benzer olmakla birlikte uygulamalar bir ülkeden diğerine değisiklik göstermektedir. Ana hatlari ile açıklanan politikalar, tüm sorunlarin üstesinden gelmek gibi bir amac taşımamaktadırlar. Her ülkenin kendine özgü koşullarına uyan farklı politikalar düzenlemesinin gereği ve parasal politikalara ek diğer
tamamlayici politikaların lüzumu açıktır.

Bu nedenle, sonuçlar bölümünde önerilen çözümlerin yol gösterici görüşler niteliğinde olduğu düsünülmelidir.

Keywords: Haluk F Gursel, Para Bazi, Parasal Kontrol, Para
Arzi, Gelismekte Olan Ulkelerde Para Modeli, Parasal Model, Parasal Kontrol Modeli, Gelismekte Olan Ulkelerde Para Modeli, Merkez Bankasi, Enflasyon, Para Politikasi, Kamu Borcu, Kamu Sektoru, Kamu Sektoru Kurumsal Cercevesi, Gelismekte Olan Ulkelerde Parasal Kontrol, Monetary Base, Monetary Control, Money Supply, Developing Countries Monetary Model, Monetary Model, Monetary Control Model, Monetary Control in Developing Countries, Central Bank, Hyperinflation, Monetary Policy, Sovereign Debt, Government, Institutional Framework.

JEL Classification:
A00,A23,C22,C25,E17,E31,E37,E41,E42,E43,E44,E47,E51,E52,E58

Suggested Citation:
GURSEL, Haluk Ferden, Dr Haluk F GURSEL, A Monetary Base Analysis and Control Model 180130151026 (August 31, 1976). Available at SSRN:
https://ssrn.com/abstract=3337761

Abstract: A MONETARY BASE ANALYSIS AND CONTROL MODEL

Dr Haluk F GURSEL

This report is one of the first studies discussing monetary base analysis and control model, a concept even today is alive and more developed by, for example, by IMF to use its analysis. The study presents monetary base approach to control of money flows and the links between monetary base, money supply and monetary income. Further, the monetary policy problems of the developing countries are reviewed.
The research devotes a section to a developing country data application
and analysis.

In developing countries, there are similar tendencies for many variables,
although each country has different characteristics, economic and social
structures. It follows that remedies can be broadly similar although
applications will differ from country to country. The outlined policies do not address themselves to the solution of all problems; however, the necessity for designing different policies fitting the special conditions of each country and the need for other policies complementary to monetary policies is apparent. Thus, the solutions suggested in conclusion should be considered as guidelines.

Keywords:  Haluk F Gursel, Monetary Base, Monetary Control,
Money Supply, Developing Countries Monetary Model, Monetary Model,
Monetary Control Model, Monetary Control in Developing Countries, Central Bank, Hyperinflation, Monetary Policy, Sovereign Debt, Government, Institutional Framework.

JEL Classification:
A00,A23,C22,C25,E17,E31,E37,E41,E42,E43,E44,E47,E51,E52,E58

Suggested Citation:
GURSEL, Haluk Ferden, Dr Haluk F GURSEL, A Monetary Base Analysis and Control Model 180130151026 (August 31, 1976). Available at SSRN:
https://ssrn.com/abstract=3337761

The paper analyzes liquidity risk and contagion in interbank markets. The
aim of the research is to define the different structures of interbank
markets and structures that allow the better allocation of liquidity and
thus avoid the spread of crisis in the whole system. For this purpose, this
paper examines Allen and Gale model. This model is the pioneer model
in the management of liquidity risk in the interbank market. We will then
analyze the mechanisms that explain the spread of liquidity risk in the
banking system both at national and international level.

A Batthyány Lajos Szakkollégium 2015 februárjában „Állam – Válság
– Pénzügyek” címmel útjára indított egy konferenciasorozatot, amely
harmadik, egyben záró „állomásán” elhangzott előadások szerkesztett
változatát tartalmazó kötetet tartja kezében T. Olvasó.
A konferenciasorozat célul tűzte ki, hogy áttekintse a világgazdasági
válság hatásait – a jogtudomány és a közgazdaságtan szempontjából
– az állam és a gazdaság viszonyában. A világgazdasági válság
megmutatta, hogy újra kell gondolni az állam és a gazdaság viszonyát,
a régi, bevett megoldások nehezen tarthatóak fenn, új – társadalmi,
gazdasági – konszenzusra van szükség, amely kialakításában
mindkét nagy társadalomtudományi területnek – szoros együttműködésben
– ki kell vennie a részét. A neoliberális gazdaságpolitika adta
megoldások önmagukban nem adnak választ a gazdasági visszaesés
negatív hatásainak kezelésére (államadósság, munkanélküliség stb.),
ezért a nem konvencionális megoldások felé (is) kell fordulni.
A konferenciasorozat harmadik állomása – erre figyelemmel –
a monetáris politika kialakításával, a monetáris politikai eszköztár átalakulásával,
a nemkonvencionális monetráis politikai eszközök megjelenésével
és ezeknek a jelenlegi jogi kereteket feszegető kérdéseivel
foglalkozott.

Ülkeler son 6-7 yıldır etkilerini fazlasıyla hissettiği küresel ekonomik kriz neticesinde farklı para politikaları araçlarıyla piyasalara müdahale araçlarını çeşitlendirmiştir. 2007’nin sonlarına doğru patlak veren ve önceleri finansal kriz olarak algılanan ancak daha sonra reel sektöre de sıçrayan küresel krizde Türkiye Cumhuriyet Merkez Bankası ile birlikte dünya merkez bankaları geleneksel olarak kullandıkları açık piyasa işlemleri, reeskont oranı politikası gibi uygulana gelen para politikası araçlarının yanına faiz koridoru, likidite yönetimi gibi konjonktürel araçları da eklemişlerdir. Böylelikle hem piyasalara etki yönlerini genişletmiş, aynı zamanda da ani ve beklenmedik ekonomik gelişmelere karşı müdahale süresini hızlandırmıştır. Çalışmada TCMB’nin gelişen küresel ekonomik gelişmeler ve kriz neticesinde fiyat istikrarı hedefine ek olarak finansal istikrarı da etkilemesinden sonra uyguladığı para politikaları ve
özelinde faiz koridorunun ve etki kanallarının daha iyi anlaşılması amaçlanmıştır.

In this work, behavior of money multipliers for a developing country, Turkey is examined and is calculated by estimating the values of the model constructed for the purpose for the period of 1952-1972. However, model lends itself for applications covering any other period. Study includes three sections. First, basic money multipliers model is presented. Then, model is modified and developed considering Turkey's special conditions. In the final section, the improved model is tested against actual data. Interestingly, although tentative, the results are different from the limited number of studies about money multipliers in Turkey. Nevertheless, the necessity for a more detailed model to test actual data is imperative.

A report by Riinvest titled “Banking Sector: Facilitator or Barrier?”, funded by the Kosovo Foundation for an Open Society – KFOS (an affiliation of Open Society Institute
– OSI), was prepared by Fadil Aliu (project manager), Alban Hashani (senior researcher), Lumir Abdixhiku (senior researcher), Diellza Gashi (researcher), Ilire Mehmeti
(researcher), and Shkëlqim Cani (international consultant from the University of Tirana – former Governor of the Central Bank of Albania). The report was published in Fall
2014. The main findings of the report in question, are: i) foreign capital is dominant in 6 out of 8 commercial banks operating in Kosovo, or 89.2% of total assets in this sector are managed by foreign banks; ii) all banks have enhanced their activity, increased deposits, assets, and lending; iii) the coverage of the loans by collateral, as of 2011, was 236.1%, the highest in the region (Southeast Europe – SEE), thus the loans in Kosovo, in general, were paid back more than in any country in the region; iv) the banking sector in Kosovo is mainly concentrated in three banks that own 74% of assets, 74% of deposits, and 71.7% of loans. Riinvest identifies this as a very high concentration in the banking sector; v) highest interest rates in SEE (14.1% for individual loans, and 16.65% to business entities – SMEs); vi) the lowest SME to GDP ratio (28.3%), indicating a very low credit intermediation and weak access to bank loans by SMEs; vii) highest profit ratio: Return 2 on Equity (ROE) 14.5% versus the average by 4% in SEE, and Return on Assets (ROA) 1.4% versus 0.3%.

Keywords: Kosovo, banking sector, interest rates, Riinvest, KFOS, organized crime, pseudo research

JEL: E43, G21, G28, R11.

The 2008 financial crisis has emphasized the importance of macro financial linkages. In the financial sector, attention is
now focusing on macro prudential regulations that are geared toward the stability of the financial system as a whole. In
the macro arena, the recognition that price stability was not sufficient to guarantee macroeconomic stability and that
financial imbalances developed despite low inflation and small output gaps has highlighted the need for additional tools
(macro prudential policies) to complement monetary policy in countercyclical management. Emerging markets (EMs)
face different conditions and have key structural features that can have a bearing on the relevance and efficacy of policy
measures. Drawing on Canuto and Ghosh (2013), this note discusses the challenges of dealing with macro financial
linkages and explores the policy toolkit available for dealing with systemic risks, particularly in the context of EMs.

THE IMPACT OF BANKING REGULATIONS AND POLICIES ON THE PROFITABILITY INDEX OF COMMERCIAL BANKS IN NIGERIA
(A STUDY OF ECO BANK PLC)














ABSTRACT
This research work was designed to find out Impact of banking regulations and policies on the profitability of commercial banks in Nigeria. The study looked at the roles of commercial banks and found out that it plays a vital role in the financial system and also the traditional role of intermediation channelling of funds from surplus economic units to deficit unit and thus occupy a private position in every economy. And that their failure may bring about a total collapse of the economy. The sample of this study was made up of one (1) commercial bank in Nigeria which is Eco Bank of Nigeria plc.
The study was carried out with the experimental research format using questionnaire to obtain primary and secondary data which was used in the course of this study.

Central banks' economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much of the enhanced significance of central banks is due to their lender-of-last-resort and market-maker-of-last-resort roles, providing liquidity to financially distressed and illiquid financial institutions and sovereigns. Supervisory and regulatory functions often deeply political, have been heaped on central banks. Central bankers also increasingly throw their weight around in the public discussion of and even the design and implementation of fiscal policy and structural reforms - areas which are way beyond their mandates and competence. In this lecture I argue that the preservation of the central bank's legitimacy requires that a clear line be drawn between the central bank's provi...

present a model of the optimal level of international reserves for a small open insurance against sudden stops in capital flows. We derive a formula for the optimal and show that plausible calibrations can explain reserves of the order of magnitude observed emerging market countries. The buildup of reserves in emerging market Asia can if one assumes a large anticipated output cost of sudden stops.

Central banks of large advanced and many emerging market economies have recently gone through a period of extraordinary expansion of balance sheets and are all now possibly facing a transition to less abnormal times. However, the fact that one group is comprised by global reserve issuers and the other by bystanders receiving impacts of the former’s policies carries substantively different implications. Furthermore, using Brazil and the U.S. as examples, we also illustrate how the relationships between central bank and public sector balance sheets have acquired higher levels of complexity, risks and opacity.

Ten years on from the collapse of mortgage markets in the United States and Britain and the resulting ‘Global Financial Crisis’, more researchers are taking a deeper look at the determinants of financial bubbles: when are equity, bonds and commodities markets excessively bullish and overvalued? And why can this cause great damage to the “real economy” when the bubble bursts?

A new World Pensions Council white paper titled “Measuring & Predicting Financial Bubbles: Learnings from the Oil Market[s]” co-authored by Iuliia Shpak (Sarasin) and Nicolas J. Firzli (WPC), published 16 November 2017, tackles these important issues, reaching new findings of significance to institutional investors and policy makers

The Gibson paradox is the positive correlation between the long-run rate of interest and the price level. As observed by Tooke (1838, 1844), who by this time had become the main representative of the Banking School in opposition to the Currency School in the nineteenth century in England, “[a] higher rate of interest, in consequence of the absorption by the war loans of a considerable proportion of the savings of individuals; such higher rate of interest constituting an increased cost of production” (Tooke, 1838, p. 347).

Development of new technological innovations in networks, platforms, and financial institutions has empowered m-banking service providers to target their business strategies plan with confidence. Nevertheless, lots of service innovations have failed to generate revenue due to lagging adoption issues. Even though, several prior researches have focused on the factors that influence the acceptance of m-banking, there is limited empirical study which simultaneously take the success factors (perceived benefit) and resistance factors (perceived sacrifice) that contribute to the customers adoption of m-banking. Furthermore, most previous researches investigate on the overall aspects related to the adoption of mobile banking, have used multiple regression methods (structural equation modeling or technology acceptance technique) or some MCDM tools. However, these studies still have some shortcoming due to lack of delivering the enough information about these factors and their prioritizing facets. Nowadays, only those organizations which major goal is to achieve customer's expectations with maximum quality can be successful in the market environment. This research reviewed the literature, took the advice from the experts in the field of m-banking service, and constructed the structural hierarchical table of the factors that affecting perceived value on consumers' adoption of mobile banking. Via a pairwise comparisons scale, a questionnaire designated was distributed to some university students in Lomé-Togo and later used AHP (Analytic Hierarchy Process) to weigh each criteria, sub-criteria and alternative in order to rank them according to their preference. The finding revealed that financial risk is the utmost factor impacting the m-banking adoption, follow by money saved element. Both factors explain how consumers are more concerned with the financial or monetary issues and far ahead Security & Privacy risk come to confirm that, Togolese Banking industry should guarantee the safety and personal detail issues when customers are dealing with this m-banking technology. This research contributes to the existing literature by providing new insights to how AHP can be applied to assess consumer's preference in m-banking in a developing country. Moreover, knowledge acquire from the influential factors will enable firms to better exploit their scarce resources, by formulating management strategies based on the priorities of these factors, and consequently, satisfy consumer needs and wants at lower cost while greater efficiency should be promoted.

We have developed a monetary and financial simulation model based on five adapted bank valuation models.  Each of them estimate the intrinsic values of the five main financial institutions of the Brazilian banking sector: Itaú/Unibanco, Banco do Brasil, Bradesco, Santander and BTG Pactual.  Analyzed period goes from the fourth quarter of 2011 to the third quarter of 2020. Initially, we consolidated the financial statements of these banks. Then, we projected the aggregated sources/uses table three quarters ahead and discounted it for the fourth quarter of 2020, according to the five valuation models most researched by fundamentalist analysts. After this, we calculated the elasticities of the intrinsic value of the banking sector, as a whole, in relation to the changes in Brazil's basic interest rate (SELIC rate, defined by Central Bank of Brazil). Finally, we did some simulations using this new approach to transmission mechanism analysis. This approach, in short, try to complement the traditional analysis of the transmission mechanism by the asset price channel. We propose another alternative: the channel of the intrinsic value of the assets. Although the analysis of the effect of interest policy on the price of assets is relevant, we have tried to show that valuation techniques can also contribute to the debate over the channels of the transmission mechanism of monetary policy. The results show that the impact of these changes on the banking sector does not tend to negatively affect their intrinsic values. Indeed, in most situations, banks increase their intrinsic value with lower base interest rates. They also lose very little intrinsic value when interest rates rise. This explains why Brazilian investors usually buy bank’s stocks as a way to protect themselves against rising interest rates. These results also help to demystify the erroneous notion that the main Brazilian banks prefer a macroeconomic environment with high basic interest rates. This, in a way, contradicts what some economists in Brazil have said in recent decades.