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Article
Publication date: 1 July 2005

Eva Lomnicka

Describes how the 1986 Financial Services Act gives the FSA power to pursue not only those breaching its rules but others who become involved in breaches by being…

Abstract

Describes how the 1986 Financial Services Act gives the FSA power to pursue not only those breaching its rules but others who become involved in breaches by being “knowingly concerned”; the FSA can apply to the courts for an injunction or for a restitution order, and if the person is in fact a bank it has a new extra‐judicial power to make it disgorge the profits and/or compensate for the loss. Explains at length what “knowingly concerned” means in the context of the criminal and civil law. Shows how banks are now under significant obligation to obtain information about their clients, and this results in knowledge for the purpose of “knowingly concerned” liability; they also have to report suspicions of money laundering and generally cooperate with the FSA.

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Journal of Financial Crime, vol. 12 no. 3
Type: Research Article
ISSN: 1359-0790

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Soldiers on International Missions
Type: Book
ISBN: 978-1-78973-032-6

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Book part
Publication date: 11 August 2016

Salima Ben Ezzeddine and Kamel Naoui

The aim of this chapter is to assess the real exchange rate misalignments. A smooth transition autoregressive model (STAR) is used for Tunisian exchange market. This model…

Abstract

The aim of this chapter is to assess the real exchange rate misalignments. A smooth transition autoregressive model (STAR) is used for Tunisian exchange market. This model allows us to see whether these differences are temporary or persistent over the period 1975–2012. We start by defining the exchange rate’s fundamental determinants to provide the equilibrium exchange rate value. Then, we study the observed exchange rate adjustment toward its equilibrium level. Vector autoregressive model and vector error correction model are applied to characterize the joint dynamics of variables in the long run. The results indicate a long-run relationship between variables. In order to consider the nonlinearity for better results, we will move to nonlinear smooth transition model. We found there is a high degree of exchange rate misalignment. We recognized that this difference decreases in the long run and disappears at the end.

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The Spread of Financial Sophistication through Emerging Markets Worldwide
Type: Book
ISBN: 978-1-78635-155-5

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Book part
Publication date: 9 March 2021

Nilendu Chatterjee and Tonmoy Chatterjee

The fight between two nations on each other’s exportable on the basis of tariff is known as tariff war. Although an economic policy, very ­often ­motivated by nationalism…

Abstract

The fight between two nations on each other’s exportable on the basis of tariff is known as tariff war. Although an economic policy, very ­often ­motivated by nationalism and politics, a nation imposes tariff on the ­exports of another nation which, in retaliation, again imposes tariff on the exports of its trading partner. The prime cause of such war is certainly to enhance employment opportunities in the home nation. But politics and nationalism provoke the opposite nation to follow the same policy. Effects of such tariff war, whether beneficial or harmful, are yet to be seen. In this context, we have adopted a general equilibrium model to illustrate the probable effect of the above-stated trade war in a structure consisting both H–O nugget and export sector dualism. The effect of imposition of tariff on multinational corporation (MNC) that has its own origin nation and production activities in other nation as well where it faces the war of tariff is considered. But it gets relief in the form of tax reduction in its origin nation. Under such a scenario, the study has shown the effect of tariff in the presence of full employment in the economy as well as in the presence of unemployment. It is seen that the MNC will continue its production procedure in both nations and enjoy profit, under some conditions. Further, in the presence of unemployment it is seen that if rate of tax on the MNC rises, unemployment may fall and welfare can increase under certain conditions.

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Global Tariff War: Economic, Political and Social Implications
Type: Book
ISBN: 978-1-80071-314-7

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Book part
Publication date: 21 May 2021

Aamir Aijaz Syed

The objective of this chapter is to study the symmetric and asymmetric impact of macroeconomic variables on the Indian stock prices (SPs) of the Bombay Stock Exchange…

Abstract

The objective of this chapter is to study the symmetric and asymmetric impact of macroeconomic variables on the Indian stock prices (SPs) of the Bombay Stock Exchange index. This chapter further investigates whether the asymmetric impact of macroeconomic variables on SP is due to the impact of any tail events like the global financial recession. An autoregressive distribution lag and non-autoregressive distribution lag approach is used for the full sample covering the period from January 2000 to June 2019 and later this sample is further subdivided into before and after the crisis period to study the variations in result. The findings show that macroeconomic variables and SP have a symmetric relation in the long run whereas an asymmetric relationship in the short run when the whole sample is analyzed. However when data are segregated into “before and after” crisis period this relationship turns to be asymmetric in long run too, meaning that in the long run, the negative and positive changes in a macroeconomic variable do not affect SPs similarly.

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New Challenges for Future Sustainability and Wellbeing
Type: Book
ISBN: 978-1-80043-969-6

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Book part
Publication date: 9 March 2021

Richardson Kojo Edeme, Ebikabowei Biedomo Aduku, Nwokoye Ebele Stella and Chigozie Nelson Nkalu

Taking global economic integration into consideration, this study investigates the effects of the imposition of the tariff. For every tariff increase, a percentage of the…

Abstract

Taking global economic integration into consideration, this study investigates the effects of the imposition of the tariff. For every tariff increase, a percentage of the trade volume is reduced. This means, there is a tradeoff between globalization and restricted trade. This chapter presents empirical evidence from the European Union and the Sub-Saharan Africa region using annual times series for the period, 1980–2019. Result indicates that with coefficient of 4.31 percent, the tradeoff in European Union is higher than Sub-Saharan Africa region with coefficient of 2.66 percent. Implied is that developing countries are more likely to suffer more from the negative effect of globalization due to trade restrictions than the developed countries of the world. This is an indication that whether in developed or developing countries, a tradeoff exists between globalization and restricted trade. Hence, the imposition of tariffs and counter-tariffs is capable of shutting down globalization.

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Global Tariff War: Economic, Political and Social Implications
Type: Book
ISBN: 978-1-80071-314-7

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Article
Publication date: 1 September 2020

Rexford Abaidoo and Hod Anyigba

This study seeks to examine the extent to which strands of inflationary related conditions (inflation expectations, inflation uncertainty and realized inflation);…

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Abstract

Purpose

This study seeks to examine the extent to which strands of inflationary related conditions (inflation expectations, inflation uncertainty and realized inflation); macroeconomic uncertainty and the likelihood of recessionary conditions influence performance indicators in the US banking sector over a specified time period.

Design/methodology/approach

The study adopts seemingly unrelated regression model (SUR) advanced by Zellner (1962) in its examination of how specific strands of inflationary conditions, and other adverse macroeconomic conditions influence performance dynamics in the US banking sector.

Findings

Empirical evidence suggest that among various adverse macroeconomic conditions examined, inflation expectations and macroeconomic uncertainty tend to have significant constraining impact on key performance indicators in the US banking sector than other conditions examined. Comparatively, this study finds that inflation expectations and macroeconomic uncertainty tend to have much more constraining impact on return on equity, than on return on assets in the US banking sector. Results further suggest that among the three bank performance indicators examined, net interest margin is the least vulnerable bank performance indicator to various adverse macroeconomic conditions examined in the study.

Practical implications

Apart from the various empirical results noted above, this study's findings are projected to help inform strategic planning decisions among institutions in the banking sector. The various findings could, for instance, inform policies and operational strategies geared toward reducing vulnerability associated with specific performance indicators such as return on equity. This reduction could be achieved by critically examining how the various performance indicators react to individual adverse macroeconomic conditions examined in this study. The process could ultimately help in developing tailored measures/procedures aimed at reducing how susceptible key performance indicators are to the various adverse macroeconomic conditions. This study's findings could also provide the platform for more adaptive policies aimed at minimizing the effects of noted macroeconomic conditions on operational efficiency in the banking sector.

Originality/value

The uniqueness of this study, compared to related ones found in the literature, stems from its treatment of three variant of related strands of macroeconomic condition (different variant of inflationary conditions) in the same framework in its empirical analysis.

目的

本研究旨在探討與通貨膨脹有關的狀況的組成部分(通脹預期 、通脹不確定性及體現了的通脹), 宏觀經濟不確定性及經濟衰退狀況的可能性、在一段特定時間內對美國銀行業的表現指數有何種程度的影響。

研究設計/方法/理念

研究採用塞爾納 (Zellner) (1962) 提出的看似無關迴歸模型 (SUR),去探討通脹狀況的特定組成部分及其它不利的宏觀經濟狀況如何影響美國銀行業內的績效動態。

研究結果

實證證據暗示在被研究的各個不利宏觀經濟狀況中,通脹預期及宏觀經濟不確定性,對美國銀行業內的主要業績指標的約束影響, 與其它被探討的狀況相比,往往會較重大。相對地、本研究結果顯示通脹預期及宏觀經濟不確定性,對美國銀行業資本回報率的約束影響、往往遠多於資產收益率。研究結果進一步顯示,在被探討的三個銀行業績指標中,就本研究所探討的各個不利的宏觀經濟狀況而言,淨息差是脆弱性最小的銀行業績指標。

實務方面的含意

除了上述各實證結果外,本研究結果預期會給銀行業內機構間作戰略規劃的決定時提供資料,譬如,各項研究結果或可在制定旨在減少與特定業績指標如資本回報率相聯繫的脆弱性的政策和經營策略時提供資料。這脆弱性的減少,是透過嚴謹地研究各個業績指標,如何對在本研究中被探討的個別不利宏觀經濟狀況作出反應而達致的。這程序或許最終會幫助建立一個以減少各個不利宏觀經濟狀況對主要業績指標的影響為目的的量身定制措施/程序。本研究的結果,或許亦可為更多旨在減弱眾所周知的宏觀經濟狀況對銀行業運營效率的影響的適應性政策提供平台。

研究原創性/價值

與文獻中可見的相關研究比較,本研究的獨特性源於其實證分析,是涉及在同一個構架內處理宏觀經濟狀況相互有關的組成部分的三個變體 (通脹狀況的不同變體) 。

Details

European Journal of Management and Business Economics, vol. 29 no. 3
Type: Research Article
ISSN: 2444-8451

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Article
Publication date: 15 January 2020

Vighneswara Swamy

The significant economic weight of the Eurozone in the globe caused the contagion of the Eurozone debt crisis on the emerging markets. The Eurozone debt crisis caused the…

Abstract

Purpose

The significant economic weight of the Eurozone in the globe caused the contagion of the Eurozone debt crisis on the emerging markets. The Eurozone debt crisis caused the sudden plummeting of the cross-border bank credit (BC) to India causing a significant impact on bank lending in India. Essentially, the purpose of this study is to find an answer to the question: Did the decline in cross-border cross-credit from Eurozone had an impact on domestic BC in India?

Design/methodology/approach

Using the data for the period from 2000 to 2013 sourced from Bank for International Settlements international banking statistics consolidated data sets, the novel specification of the study captures the impact of Eurozone cross-border credit on India by developing two regression frameworks that capture the pre-Euro debt crisis period scenario and post-Euro debt crisis period scenario.

Findings

The results offer a very interesting analogy of the behavior of BC and cross-border credit during the pre and post-Eurozone crisis scenarios of analysis. During the pre-Eurozone crisis period, cross-border credit displayed a significant negative relationship with BC indicating that cross-border credit to the Indian firms indirectly benefitted the banks by creating increased demand for domestic BC. The post-Eurozone crisis period witnessed a nexus between cross-border credit and BC during the pre-Eurozone crisis period, which gradually disappeared largely because of the onset of the Eurozone crisis.

Originality/value

This study is a first of its kind in investigating the impact of the Eurozone crisis on an emerging economy like India. This study supports the hypothesis of the existence of the transmission of financial shocks through the balance sheets of international banks. The findings conform to the policy concerns of most of the emerging economies that international banks transmit financial shocks from their home countries. The implication for India and other emerging economies is that international credit growth deserves careful monitoring.

Details

Journal of Financial Economic Policy, vol. 12 no. 4
Type: Research Article
ISSN: 1757-6385

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Article
Publication date: 29 April 2020

Elena Popkova

The purpose of the paper is to model the modern global practice of social management of human capital – at the state and corporate levels – to determine the perspectives…

Abstract

Purpose

The purpose of the paper is to model the modern global practice of social management of human capital – at the state and corporate levels – to determine the perspectives of its optimization and to develop the basic principles of a new methodological approach to social management of human capital, which is preferable in the conditions of social market economy.

Design/methodology/approach

The author uses mathematical tools, including correlation and regression analysis. These are applied to determine the influence of each of the 12 indicators for the labor market that are presented as part of The World Economic Forum's (WEF’s) ”The Global Competitiveness Report 2019” on The United Nations Development Programme's (UNDP) Human Development Index. The research objects are countries from each of the four categories of nations, as distinguished by UNDP, in the Human Development Index. By unifying the 2019 data from UNDP and WEF, a data set is formed.

Findings

It is substantiated that in modern economic practice, it is impossible to achieve the “ideal” conditions necessary for applying existing methodological approaches to the social management of human capital, which reduces how effectively current approaches function. Foundation on the existing methods leads to uncertainty as to management of human capital, which is social by 95.14% in 2019. Though the achieved value of the social management of human capital is close to being optimal, it is still not enough to achieve a high level of human development, which was 0.685 on average for the global economy in 2019 and is likely to increase by 31.43% until 2025, for acknowledging the social market status of the modern economy.

Originality/value

It is proven that there is a need for a new, mixed, methodological approach to the social management of human capital, which would optimally combine the best practices of both state and corporate management. The principles for the practical implementation of such an approach are offered, and proposals are developed to substantiate the contribution of this approach to the achievement of the global goals of sustainable development.

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Article
Publication date: 7 May 2020

Hummera Saleem, Malik Shahzad Shabbir and Muhammad Bilal khan

The purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a…

Abstract

Purpose

The purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a set of five selected South Asian countries.

Design/methodology/approach

This study used newly developed bootstrap auto regressive distributed lags (ARDL) cointegration test to examine the long-run relationship among FDI, GDP and TO for selected South Asian countries for 1975–2016.

Findings

The economic growth (EG) is significantly related to TO for Bangladesh, India and Sri Lanka and the expansion of TO is crucial for growth in these countries. The results show that all countries (except Bangladesh) found the existence of long-run cointegration between FDI, GDP and TO, whereas FDI is a dependent variable. These results concluded that FDI and TO are contributing to EG in these selected countries.

Originality/value

This study is one of the first attempts to investigate the causal relationship and address the short and long dynamic among FDI, GDP and TO regarding five south Asian countries such as Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Details

South Asian Journal of Business Studies, vol. 9 no. 2
Type: Research Article
ISSN: 2398-628X

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