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Article
Publication date: 8 June 2010

Branka Mraović

This paper seeks to focus on the challenge posed by financial globalization before the traditional Westphalian model of monetary sovereignty, claiming that financial…

Abstract

Purpose

This paper seeks to focus on the challenge posed by financial globalization before the traditional Westphalian model of monetary sovereignty, claiming that financial globalization of the world's markets leads to new forms of geopolitical rivalry among contemporary governments.

Design/methodology/approach

The paper sets the analytical framework for the study of a tripartite foundation of monetary sovereignty in money manager capitalism, consisting of currency associated with the instruments of its manipulation, which are the two largest independent macroeconomic players: the central bank and the state. This raises the issues of dual sovereignty in economy and the ways in which these entities use their sovereign powers on local and global levels.

Findings

Current growing interdependence of financial networks increases the number of choices in monetary issues and forces governments to make ever faster adjustments to the machinery of complex monetary instruments which not only facilitate transactions among very different and distant economies, but also obscure the transparency of decision making. The need to ensure, through the central bank's legislation, an independent status of central bankers with respect to politicians, implies that their work be effectively monitored by the public and the respective parliament.

Practical implications

The independence of central banks, which comprises goal independence, instrument independence and personal independence of the decision‐making body of a central bank, increases the accountability of central bankers and raises the issue of sanctions for their misbehavior.

Originality/value

Financial globalization has definitely raised the issue of redistribution of the authority of governments and non‐state agents. A clear hierarchy between currencies at the global level has dual consequences: first, it amplifies the unequal relationship between the leaders and the followers in global monetary circulation; second, global market forces ignore political borders and present a serious challenge for the monetary sovereignty of contemporary governments. Equally, the question of re‐formulation of the concept of a sovereign state is raised.

Details

Social Responsibility Journal, vol. 6 no. 2
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 23 November 2010

Jessica Lassiter, Timothy O. Bisping and Joseph Horton

The purpose of this paper is to consider the difference in the development of the central bank in two states in transition from communism to capitalism and from being…

411

Abstract

Purpose

The purpose of this paper is to consider the difference in the development of the central bank in two states in transition from communism to capitalism and from being parts of the Soviet Union to being independent states.

Design/methodology/approach

Data and theoretical analysis were gathered from various sources in order to evaluate the approach to central banking taken by these two countries.

Findings

Substantial variations were found in the resulting monetary policies and rates of inflation which demonstrate the differences in the institutions developed and illustrate the importance of independence for the central bank.

Originality/value

The contrasting experience of Belarus and Estonia, both of which gained independence from the Soviet Union in 1991, provide examples of success and failure in this endeavor, thus providing valuable insight to those involved with transitioning economies.

Details

International Journal of Commerce and Management, vol. 20 no. 4
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 15 January 2020

Ebrahim M.R. Lababidi

The purpose of this paper is to explore the relationship and implications of institutional autonomy and capacity through the Central Bank of Syria in its ability to…

Abstract

Purpose

The purpose of this paper is to explore the relationship and implications of institutional autonomy and capacity through the Central Bank of Syria in its ability to implement an effective anti-money laundering (AML) and counter-terrorism financing (CTF) framework during a period of intense armed conflict.

Design/methodology/approach

Due to the lack of reliable data currently available on Syria, this paper focuses on Syria’s AML/CTF legislation through passed laws and regulations; annual reports on the Central Bank of Syria and the AML and terrorism financing authority; the academic literature on money laundering, terrorist financing and institutional capacity. This paper will address the theoretical framework of Coleman and Skogstad’s characteristics that define the degree of autonomy and capacity of an institution. Though their characteristics are applied toward the Canadian state, for the purpose of this paper, they have been adopted in the absence of their use verbatim in the case of the Central Bank of Syria.

Findings

The Central Bank of Syria has experienced diminishing independence due to conflict-induced stress in Syria’s financial sector. This loss of autonomy is attributed to the prioritization of government-led emergency policies to secure and stabilize Syria's economy. Despite this loss, the Central Bank of Syria has maintained considerable and effective improvements in Syria’s AML/CTF framework, aligning it closer to that of international standards promoted by the Financial Action Task Force (FATF). Institutional gaps, however, still exist. These gaps imply that the Central Bank of Syria still lags in a number of areas that affect its capability in implementing a more effective AML/CTF framework.

Research limitations/implications

The conflict in Syria is still a very new topic that lacks a considerable amount of reliable data. As such, many research limitations were encountered despite the volume of information reviewed for this paper in both Arabic and English. Nevertheless, this paper provides a clearer understanding of how state capacity is reflected in its institutions through certain policies and approaches taken by a central monetary authority with implications and results in a country rattled by years of intense conflict.

Practical implications

Despite the research limitations and implications, this paper provides a clearer understanding of how state capacity is reflected in its institutions through certain policies and approaches taken by a central monetary authority with implications and results in a country rattled by years of intense conflict. This can be useful for institutional policymakers, as well as academics exploring the relationship between the state and its institutions in times of hardship.

Originality/value

Though there is AML/CTF literature on Middle Eastern countries such as Egypt, Jordan and Saudi Arabia, very little is written on Syria. There is also very little written on the broader subject of state and institutional capacity through the lens of an effective AML and CTF framework during a period of intense armed conflict. By looking at an ongoing conflict, this paper explores a subject with as much detail as needed to provide an illustration of the relationship and implications of institutional autonomy and capacity in relation to the state through an effective AML/CTF framework in a country with a struggling financial system.

Details

Journal of Money Laundering Control, vol. 23 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Expert briefing
Publication date: 5 May 2016

Central banks in South-east Asia.

Book part
Publication date: 16 February 2006

Caner Bakir

The 17 December 2004 was a turning point in both Turkish and European history: The European Council followed the European Commission's recommendation and approved the…

Abstract

The 17 December 2004 was a turning point in both Turkish and European history: The European Council followed the European Commission's recommendation and approved the opening of accession negotiations with Turkey, which commenced on 3 October 2005. The goal of accession to the European Union (EU) has become one of the main driving forces for broadly defined legal, political, economic, and financial reforms in Turkey.2

Details

Emerging European Financial Markets: Independence and Integration Post-Enlargement
Type: Book
ISBN: 978-0-76231-264-1

Book part
Publication date: 8 June 2021

Partha Gangopadhyay and James Glenn

The tendency for nations to move toward implementing independent and conservative central bankers has gained momentum over the past two decades. This trend continues…

Abstract

The tendency for nations to move toward implementing independent and conservative central bankers has gained momentum over the past two decades. This trend continues despite the fact that the benefits of central bank independence (CBI) are highly contested among economists. The ability of a central bank to boost economic growth has been seriously compromised due to the emergence of the concept, or knowledge, of independent CBI as per the New Zealand model. In this chapter, we will propose a new line of research for the knowledge economy to underscore the ramifications of substituting local, or regional, knowledge by international knowledge. The goal of this chapter is to assess whether the new knowledge has real merits vis-à-vis the old knowledge of central banking. If not, this chapter will issue a caveat to policy makers to be careful in replacing old knowledge by new knowledge – the new does not always mean a better knowledge. In other words, this chapter will highlight the potential dangers of using untested new knowledge and its economic consequences. This chapter contributes to the literature on CBI by introducing analytical methods not previously used in empirical examination of central banks. Analysis has uncovered the presence of high mobility in economic variables that is unexplained by changes in CBI. The chapter addresses the question of mobility by making use of mobility measures and linear regression in an attempt to identify the source of this mobility. The results from the regression are significant to the theory of central bank independence as they imply that consolidation of inflation rates are not reciprocated with consolidation of economic growth, as conventional theory would suggest.

Article
Publication date: 7 September 2021

Janusz Brzeszczyński, Jerzy Gajdka, Tomasz Schabek and Ali M Kutan

This study contributes to the pool of knowledge about the impact of monetary policy communication of central banks on financial instruments' prices and assets' value in…

Abstract

Purpose

This study contributes to the pool of knowledge about the impact of monetary policy communication of central banks on financial instruments' prices and assets' value in emerging markets.

Design/methodology/approach

Empirical analysis is executed using the National Bank of Poland (NBP) announcements about its monetary policy covering the data from the broad financial market in its three main segments: stock market, foreign exchange market and bonds market. The reactions are measured relative to the changes in the NBP announcements and also with respect to investors' expectations. Autoregressive conditional heteroscedasticity (ARCH) models with dummy variables are used as the main methodological tool.

Findings

Bonds market and foreign exchange market are the most sensitive market segments, while interest rate and money supply are the most influential types of announcements. The changes of the revealed new macroeconomic figures had more impact on assets' prices movements than the deviations from their expectations. Moreover, greater diversity of the Monetary Policy Council (MPC) members' opinions on the voted motions, captured in the MPC voting reports, is associated with more cases of statistically significant NBP communication events.

Practical implications

The findings have direct relevance for fund managers, portfolio analysts, investors and also for financial market regulators.

Originality/value

The results provide novel evidence about how the emerging financial market responds to monetary policy announcements. They help understand the nature of the impact of public information on financial assets' valuation and on movements of their prices, analysed comprehensively in three market segments, in the emerging market environment.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Expert briefing
Publication date: 13 June 2018

The Vollgeld (sovereign money) proposal, which claimed to make the banking system safer by preventing commercial banks creating money through requiring thems to keep 100…

Article
Publication date: 7 October 2019

Eugene E. Mniwasa

This paper aims to examine how banks in Tanzania have been vulnerable to money laundering activities and how the banking institutions have been implicated in enabling or…

Abstract

Purpose

This paper aims to examine how banks in Tanzania have been vulnerable to money laundering activities and how the banking institutions have been implicated in enabling or aiding the commission of money laundering offences, and highlights the banks’ failure or inability to prevent, detect and thwart money laundering committed through their financial systems.

Design/methodology/approach

The paper explores Tanzania’s anti-money laundering law and analyzes non-law factors that make the banks exposed to money laundering activities. It looks at law-related, political and economic circumstances that impinge on the banks’ efficacy to tackle money laundering offences committed through their systems. The data are sourced from policy documents, statutes, case law and literature from Tanzania and other jurisdictions.

Findings

Both law-related and non-law factors create an enabling environment for the commission of money laundering offences, and this exposes banks in Tanzania to money laundering activities. Some banks have been implicated in enabling or aiding money laundering offences. These banks have abdicated their obligations to fight against money laundering. This is attributed to the fact that the banks’ internal anti-money laundering policies, regulations and procedures are inefficient, and Tanzania’s legal framework is generally ineffective to tackle money laundering offences.

Originality/value

This paper uncovers a multi-faceted nature of money laundering affecting banks in Tanzania. It is recommended that Tanzania’s anti-money laundering policy should address law-related, political, economic and other factors that create an enabling environment for the commission of money laundering offences. Tanzania’s anti-money laundering law should be reformed to enhance its efficacy and, lastly, banks should reinforce their internal anti-money laundering policies and regulations and policies.

Details

Journal of Money Laundering Control, vol. 22 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Executive summary
Publication date: 11 December 2018

INDIA: RBI governor resignation augurs risk to growth

Details

DOI: 10.1108/OXAN-ES240488

ISSN: 2633-304X

Keywords

Geographic
Topical
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