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11. Cyber Mapping the Financial System

Author:
Jan-Philipp Brauchle, Matthias Göbel, Jens Seiler, and Christoph Von Busekist
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Cyber risks present a growing threat for individual agents in the financial system: banks, insurers, central counterparties, and the like. However, cyber events may also have the potential to destabilize the financial system as a whole. While dedicated microprudential regulatory and supervisory regimes are in place or are being developed to manage cyber risks especially at credit institutions, what is lacking is a systemic view of cyber risks that particularly sheds light on concentrations and contagion channels that are material to the financial system.
Topic:
Science and Technology, Finance, Networks, Risk, and Financial Institutions
Political Geography:
Global Focus

12. A Surplus of Deficits

Author:
Amr Adly
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
From a political economy perspective, there are four key forces working against the peace and prosperity of Middle Eastern and North African states. To defeat them robust institutions are essential.
Topic:
Economics, Political Economy, Economic Growth, Peace, and Financial Institutions
Political Geography:
Africa, Middle East, North Africa, and MENA

13. Intellectual Capital in Islamic Banking Sector: Evidence from Turkey

Author:
Hakan Uslu
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
The Islamic banking sector has experienced a rapid development both in Muslim and non-Muslim geographies. In this study, using a panel dataset spanning the time period 2005-2018 and several econometric estimations, how intellectual capital affects the financial performance of the participation banks, as Islamic banks are called in Turkey is analysed. The Value-Added Intellectual Coefficient model (VAIC), a well-known methodology, is utilised as a measure for intellectual capital performances and return on assets (ROA) and return on shareholders’ equity (ROE), in general, financial performances of the banks. The results of the analyses provide evidence for a positive and statistically significant impact of intellectual capital on financial performances of Islamic banks operating in Turkey. The results also suggest that employed capital efficiency and structural capital efficiency in the operations of Islamic banks are the two crucial factors for their profitability, while human capital efficiency has no statistical relationship with their financial performances. The current study contributes to the relevant literature since there is no study on Islamic banks of Turkey in the aspect of intellectual capital and helps Islamic bankers, such as executives, investors and shareholders, or policymakers in understanding and determining their positions regarding intellectual capital.
Topic:
Banks, Financial Institutions, Capital, and Banking
Political Geography:
Europe, Turkey, and Asia

14. Navigating Low-Carbon Finance Management at Banks and Non-Banking Financial Institutions

Author:
Naoyuki Yoshino and Farhad Taghizadeh-Hesary
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Lack of long-term financing, the existence of various risks, the low rate of return, and lack of capacity in market actors are major challenges for the development of low-carbon projects. This paper attempts to provide guidelines for governments and financial institutions by highlighting practical solutions as enabling conditions of low-carbon finance and investment. Such solutions include increasing the role of public financial institutions, increasing the share of non-banking financial institutions in long-term investments, using the spillover tax to increase the rate of return, developing green credit guarantee schemes to reduce the credit risk, and addressing low-carbon investment risks via financial and policy de-risking. These solutions are analysed in detail and considerations for their implementation are discussed throughout the paper. Tools and instruments for low-carbon investments and a practical example of the implementation of the proposed tools are also provided in this paper
Topic:
Climate Change, Infrastructure, Banks, Credit, and Financial Institutions
Political Geography:
Global Focus

15. The role of Chinese finance in the City of London after Brexit

Author:
Sarah Hall
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Asia Research Institute, University of Nottingham
Abstract:
London is the largest western financial centre for financial transactions denominated in Renminbi (RMB) and has played an important role in shaping the rapid and recent internationalisation of Chinese finance. This policy brief discusses how to maintain this leading role post-Brexit.
Topic:
Economics, International Political Economy, Finance, Brexit, and Financial Institutions
Political Geography:
Britain, China, and United Kingdom

16. The role of Chinese finance in the City of London after Brexit: Background Report

Author:
Sarah Hall
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Asia Research Institute, University of Nottingham
Abstract:
The competitiveness of London’s financial centre is shaped by the UK’s current adoption of EU regulations. The future development of London’s financial services sector is unknown as Britain’s relationship with Europe changes following the vote to leave the EU in the 2016 referendum. This uncertainty arises because even if Theresa May’s Withdrawal Agreement is adopted, the UK will then have to choose whether to converge, seek equivalence with or diverge from EU regulations for financial services. Research by Professor Sarah Hall (University of Nottingham) argues that the implications of these regulatory decisions will impact London’s financial services sector’s relationship with financial markets globally. Her research focuses on how London’s role as the largest western financial centre for financial transactions denominated in China’s currency, the renminbi, could be adversely affected following changes in the regulatory alignment between the UK and the EU following Brexit.
Topic:
Economics, International Political Economy, Finance, and Financial Institutions
Political Geography:
Britain, China, and United Kingdom

17. Climate Scenarios for the Canadian Lending and Investment Industry

Author:
Olaf Weber and Adeboye Oyegunle
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Recently, a task force has been established by the Financial Stability Board that addresses climate risks for the financial industry. The Task Force on Climate-related Financial Disclosures (TCFD) has published recommendations for standardized disclosure about climate-related risks, and it has proposed developing scenario analyses to address climate-related risks for the financial industry. Using the climate risk indicators developed by the TCFD, an impact analysis that explored how direct impacts of the risk indicators influence one another was conducted. In addition, the influence of indirect impacts of the risk indicators on each other was examined by using a mathematical approach, the cross impact matrix-multiplication applied to classification (MICMAC Analysis). Finally, three scenarios were generated (a business as usual scenario; a reduced climate policies scenario; and a strong climate policies scenario), from which recommendations were made that will enable the Canadian financial sector to address risks and take proactive action, including investing in a low-carbon economy, to mitigate climate change.
Topic:
Climate Change, Environment, Investment, and Financial Institutions
Political Geography:
Canada and North America

18. Iran Has a Slow Motion Banking Crisis

Author:
Adnan Mazarei
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Suffering under Western sanctions and security challenges, Iran faces problems as well from its fragile banking system, which has been languishing for decades. Liquidity and solvency weaknesses pose a growing risk to the country’s financial stability. The sanctions reimposed by the United States in 2018 have heightened these vulnerabilities, but the problems also result from the heavy-handed role of the state, corruption, and the Central Bank of Iran’s failure to regulate and supervise the system. Iran’s ability to avoid a run on its banks is aided by their reliance on liquidity assistance, deposit insurance, and regulatory forbearance from the central bank. Depositors are forced to be patient because they have limited options to invest elsewhere. Iran has thus avoided a full-blown banking crisis. But the situation is not sustainable. Banks remain susceptible to external shocks, which could come from a complete halt to oil exports or war.
Topic:
Security, Financial Crisis, Sanctions, Banks, and Financial Institutions
Political Geography:
Iran, Middle East, North America, and United States of America

19. Financial Inclusion and its Impact on Employment Creation in Botswana

Author:
Koketso Molefhi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the impact of financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
Topic:
Employment, Finance, Financial Institutions, and Inclusion
Political Geography:
Africa and Botswana

20. Financial Inclusion in Eswatini: What is Driving the Adoption of Mobile Money?

Author:
T. Magongo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Mobile money has gained increasing importance and prominence in many sub-Saharan African countries and as a result, it is seen as a possible key to fast-tracking financial inclusion in developing countries including Eswatini. Although financial inclusion rates have improved considerably in Eswatini, the adoption of mobile money is still relatively low in the country compared to other countries in sub-Saharan Africa, yet a majority of the population knows about the technology. This study investigates the driving factors of mobile money adoption in Eswatini using a logit and probit analysis based on the 2014 FinScope Financial Access and Consumer Survey. Findings reveal that the likelihood of using mobile money increases with increasing levels of financial literacy, education, sending and receiving remittances using mobile money, usage of informal financial products, living in an urban area, and adjusting income during times of shock. Results suggest opportunities for financial inclusiveness such as designing and implementation of financial literacy education and money management programs, purposely targeting the underserved population (rural), as well as informal financial product usage formalization.
Topic:
Science and Technology, Finance, Economic Mobility, and Financial Institutions
Political Geography:
Africa and Eswatini