Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Negative policy interest rates have prevailed for some years in Denmark and are a more recent development in Sweden. Among other potential side effects, negative rates could weaken banks’ profitability by reducing net interest income, their main source of earnings. However, an analysis of financial statements at the country rather than the consolidated group level shows that bank margins have been broadly stable. At least to date, lower interest income was offset by reductions in wholesale funding costs and higher fee income. Nonetheless, the impacts on bank health and lending from negative interest rates will need to continue to be monitored closely.

Interest rates --- Banks and banking --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- Finance --- Financial institutions --- Money --- Money market rates --- Rate of interest --- Rates, Interest --- Interest --- Banks and Banking --- Macroeconomics --- Money and Monetary Policy --- Finance: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Interest Rates: Determination, Term Structure, and Effects --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Central Banks and Their Policies --- Personal Income, Wealth, and Their Distributions --- General Financial Markets: Government Policy and Regulation --- Monetary economics --- Negative interest rates --- Deposit rates --- Central bank policy rate --- Personal income --- Monetary policy --- Financial services --- National accounts --- Bank soundness --- Financial sector policy and analysis --- Income --- Sweden

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper analyzes how differences in legal origin, judicial efficiency, and investor protection affect firm leverage and earnings volatility across developing countries. Using a large number of developing countries, four main findings are highlighted. First, firms in civil legal origin countries rely more on debt financing compared to firms in common law countries, and they exhibit lower earnings volatility. Second, under weak judicial enforcement, firms tend to borrow more but they take less risk. Third, stronger creditor rights increase debt financing and reduce earnings volatility. Fourth, firm listing on a developed stock exchange shifts the capital structure towards more equity financing, and it increases the firm’s ability to borrow more when the judicial system is inefficient. The results reinforce the importance of strengthening laws and institutions as well as deepening capital markets in developing countries to improve financing conditions and investment outcomes.

Economic development --- Developing countries --- Economic policy. --- Economic conditions. --- Exports and Imports --- Labor --- Public Finance --- Taxation --- International Financial Markets --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Economic Development: Financial Markets --- Saving and Capital Investment --- Corporate Finance and Governance --- Taxation, Subsidies, and Revenue: General --- International Lending and Debt Problems --- Wages, Compensation, and Labor Costs: General --- Public finance & taxation --- International economics --- Labour --- income economics --- Legal support in revenue administration --- Debt financing --- Average effective tax rate --- Wages --- Income tax systems --- Revenue administration --- External debt --- Tax policy --- Taxes --- Revenue --- Debts, External --- Tax administration and procedure --- Income tax --- India

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks’ loan portfolio quality, and that the effect is fairly similar in magnitude using the multivariate and panel vector autoregressive frameworks. In contrast, higher lending rates may lead to adverse selection problems and hence to a drop in portfolio quality. The paper also reports that a larger market share of foreign banks in the industry improves loan quality.

Finance, Public --- Cameralistics --- Public finance --- Public finances --- Currency question --- Banks and Banking --- Public Finance --- Industries: Financial Services --- Exports and Imports --- Computational Techniques --- Financial Markets and the Macroeconomy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Public Administration --- Public Sector Accounting and Audits --- Current Account Adjustment --- Short-term Capital Movements --- Finance --- Banking --- Public finance & taxation --- International economics --- Loans --- Foreign banks --- Commercial banks --- Macroeconomic risks --- Financial institutions --- Public financial management (PFM) --- Capital account --- Balance of payments --- Banks and banking --- Banks and banking, Foreign --- Fiscal policy --- Egypt, Arab Republic of

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Against the backdrop of high international food and fertilizer prices, this paper discusses food insecurity in Nigeria, investigates its drivers in a cross-country setting, and assesses the role of policies. Using two proxies for food security, we find that high per capita consumption, high yields and low food inflation support food security. Cross-country estimates of yields and production provided by the FAO/OECD reveal that use of inputs is lower in Nigeria than in other countries, and that policies to raise crop yields positively correlate with better food security conditions. The paper also uses detailed domestic commodity price indices to assess linkages with international prices and the role of import bans. Central bank policies for funding agriculture and import bans have not managed to stimulate agricultural output nor moderated the impact of international food prices. Rather, policies should focus on use of inputs that are severely underused in Nigeria as elsewhere in SSA.

Money and Monetary Policy --- International Economics --- Agriculture & Food Policy --- Macroeconomics --- Investments: Commodities --- Exports and Imports --- Monetary Policy --- International Agreements and Observance --- International Organizations --- Agriculture: Aggregate Supply and Demand Analysis --- Prices --- Agricultural Policy --- Food Policy --- Macroeconomics: Consumption --- Saving --- Wealth --- Agriculture: General --- Trade: General --- Monetary economics --- International institutions --- Poverty & precarity --- Investment & securities --- International economics --- Monetary policy --- International organization --- Poverty --- National accounts --- Commodities --- International trade --- International agencies --- Food security --- Food prices --- Consumption --- Economics --- Farm produce --- Nigeria

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.

Finance --- Financial risk management --- Risk management --- International Monetary Fund. --- MCD (International Monetary Fund. Middle East and Central Asia Department) --- International Monetary Fund --- E-books --- Banking law (Islamic law). --- Business. --- Finance (Islamic law). --- Finance. --- Business & Economics --- Financial Management & Planning --- Banks and Banking --- Finance: General --- Islamic Banking and Finance --- Financial Markets and the Macroeconomy --- Monetary Policy --- Central Banks and Their Policies --- International Financial Markets --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Other Economic Systems: Public Economics --- Financial Economics --- General Financial Markets: Government Policy and Regulation --- Portfolio Choice --- Investment Decisions --- Banking --- Islamic banking --- Islamic finance --- Financial sector stability --- Liquidity management --- Financial services --- Financial sector policy and analysis --- Asset and liability management --- Open market operations --- Central banks --- Banks and banking --- Islamic countries --- Financial services industry --- Liquidity --- Economics --- Malaysia