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The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008–2009. It is argued that a compositional change in non-core liabilities reflects the different stages of financial cycle. Banks usually fund their credits with core liabilities, which grow with households’ wealth, but when there is a faster growth in credits compared to deposits, the banks often resort to non-core liabilities to meet the excess demand for loans. This chapter analyses the relationship between non-core liabilities and credits in a small open economy, namely Turkey. It investigates the relationship under alternative settings and presents consistent evidence on a robust relationship between credits and non-core liabilities under all frameworks. The study also verifies that elevated demand for credit may induce some increase in non-core liabilities. Finally, the relationship between non-core liabilities and credit growth is also affirmed in the long run.

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from 2009 to 2014. Performance is measured by gross income and return on assets (ROA) of these banks. To ensure the robustness of our results, we used six different measures of FI. These include credits for small and medium enterprises (SMEs), deposits for SMEs, number of ATMs, number of ATM services, number of credit cards, and new services. We found a significant impact of FI on ‘ performance when measured by gross income, and ROA, although our study displays different results when considering the effect of FI variables separately. Thus, FI contributes to enhance the banks’ performance. Therefore, the banks should devote more resources to increase FI as it benefits their profitability.

Market-based approaches to environmental management are increasingly common. In 1983 when Joeres and David published their pioneering collection, Buying a Better Environment, the concept was seen as at best novel, and at worst far-fetched. Yet today, conservation and water quality credits are for sale in many developed countries, and the idea of payment for ecosystem services is ubiquitous in environmental policy circles. This paper traces that shift from command-and-control to market-based environmental management through analysis of the evolving practice of stream mitigation banking (SMB) in the US. In the most common form of SMB today, a for-profit company buys land with a damaged stream on it and restores it to produce mitigation credits which can then be purchased by developers to fulfill their permit conditions under the Clean Water Act. Though decidedly noncommercial in origin, SMB was converted into for-profit tradable regulatory mechanism in 2000 and has since spread rapidly across the US with the strong support of the US Environmental Protection Agency. Using Bourdieu’s field concept as a framework, I argue that the neoliberal transformation of mitigation banking is a product of both relations within the regulatory field, of that field’s relations with the fields of science, and of power.

That Melchior Palyi taught a course at the University of Chicago on the European banking system is unsurprising, given his background provided in the biographical sketch presented above.

This research uses public information and represents an analysis of how the capital markets will be considered as an alternative for the microfinance entities in order to obtain better interest rates and new financial alternatives (diversify their capital structure) as well as develop their corporate governance (Bolaños et al., 2014). Peru has been one of the fastest growing Latin American countries in recent years. In microfinance, Peru has achieved considerable growth over time. According to the Interamerican Development Bank (IDB) and Coporación Andina de Fomento (CAF), Peru is a country with the best conditions for microfinance in region of Latin America and the Caribbean. This is reflected, in part, by a larger portfolio of microfinance loans and the best business environment in the region (IDB, 2010). We start by reviewing the history of this industry for the period 2009–2013. This overview will facilitate an understanding of this industry, its development, and the main participants in this sector; then we proceed by exploring the market structure, its nature, its characteristics, and the supply and demand forces, including the competitors and the size of the Peruvian financial sector. Finally, we focus on the process followed by Caja Municipal de Huancayo (CMAC) in order to list bonds and commercial liabilities on the Lima Stock Exchange, taking into consideration the regulation process; finally, the results of the operation are presented, This review will give a better understanding about the process of development for microfinance entities in a volatile macroeconomic context.

Financial systemic risk is often assessed by the interconnectedness of financial institutes (FI) in terms of cross-ownership, overlapping investment portfolios, interbank credit exposures, etc. Less is known about the interconnectedness between FIs through the lens of consumer credits. Using detailed consumer credit data in Canada, this chapter constructs a novel banking network to measure FIs’ interconnectedness in the consumer credit markets. Results show that FIs on average are more connected to each other over the sample period, with the interconnectedness measure increases by 19% from 2013 Q4 to 2019 Q4. FIs with more diversified portfolios are more connected in the network. Among various types of FIs, secondary FIs have the notable increase in interconnectedness. Domestic Systemically Important Banks and secondary FIs offering a broad range of loan products are more connected to large FIs, while those specialized in single loan types are more connected to their industry peers. FI connectedness is also significantly related to their participation in the mortgage markets.

If a reason is sought for not neglecting Cazenove, we need look no further than to his views on demand, consumption, saving and gluts, and to his criticisms of what he called ‘Say's principle’ and ‘Say's new theory’.

Inquiring into the role of Islamic and conventional banks regarding the core responsibility of lending is an established phenomenon. This chapter is based on key findings regarding dynamic changes in the structural mix of credit portfolios in Islamic banks and conventional banks of Pakistan.

The nature of the study is exploratory; the sample consists of 5 Islamic banks and 20 conventional banks of Pakistan comparatively evaluated for the time frame of 2008–2014.

Our findings show that for Islamic banks, there is an increasing trend in the credit portfolios as a proportion to assets as well as to equity, whereas in case of conventional banks the findings are opposite. The results further prove a positive and negative growth of credit portfolios as proportional to assets and equity in case of Islamic and conventional banks respectively. It is also observed that credit portfolios of Islamic banks are growing with higher degree as a proportion to equity as compared to proportion to assets. On the other hand, conventional banks show higher degree of decline of credit portfolios as a proportion to equity as compared to assets.

These findings also show that primary stakeholders in Islamic banks are more risk seekers thus more inclined towards risky investments than ordinary credits.

It is deservedly recognized that James Steuart advanced a monetary theory in which paper money played an important role. The successful establishment of Scottish banknote circulation and theoretical influences from his fellow countrymen such as John Law can be pointed out as backgrounds for his monetary theory. Little attention has been given however to the point that Steuart deduced theory on banks and banknotes quite differently from his predecessors. It is of great significance that Steuart’s theory on banks and banknotes in his first draft of The Principles of Political Oeconomy was, in the following years, drastically expanded and reconstructed. The theory in his first draft written in 1764 was based on the opinion that banknotes should be issued only on landed securities, in consideration of ideas from the Scottish banking system. He then expanded the theory into a dynamic three-stage banking theory where he concluded that as economies and credit grew, banks should issue notes not only on the basis of landed securities but also by discounting bills and giving public credit. By this expansion, banknotes gained a broad and central role in his monetary theory, and the expansion gave his monetary theory more ingenious evolutionary aspects.