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Article
Publication date: 15 April 2024

Ali Awdeh, Chawki El Moussawi and Hassan Hamadi

Serious concerns about the stability of the international financial systems have arisen recently, resulting from the mounting inflation rates and the accompanying procedures to…

Abstract

Purpose

Serious concerns about the stability of the international financial systems have arisen recently, resulting from the mounting inflation rates and the accompanying procedures to control them. Consequently, this study aims at examining empirically the impact of inflationary pressures/shocks on the stability of banking sectors.

Design/methodology/approach

The study adopts a dynamic GMM models and exploits a sample of 188 banks operating in 14 MENA economies, over the period 1999–2021.

Findings

This research finds that high inflation does indeed harm bank financial stability and deteriorates banks credit risk. Furthermore, the examination of the impact of interaction terms between inflation and bank-specific and institutional quality variables shows that better capitalisation levels, higher liquidity buffers, larger asset size, greater market power, foreign ownership and overall political stability, all can counterbalance the impact of inflationary pressures on MENA banks financial stability.

Originality/value

In addition to empirically revealing how inflationary shocks can deteriorate financial stability, the main novelty of this research is examining how the interactions between inflation on one hand, and bank-specific and institutional quality on the other, affect bank stability.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 17 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 4 September 2017

Marcin Figat

This paper aims to present the results of aerodynamic calculation of impact the main rotor on the fuselage and the tail of a light gyroplane. This kind of vehicle is a type of…

Abstract

Purpose

This paper aims to present the results of aerodynamic calculation of impact the main rotor on the fuselage and the tail of a light gyroplane. This kind of vehicle is a type of rotorcraft which uses a non-powered rotor in autorotation to develop lift and engine-powered propeller to provide the thrust. Both of them disturb the flow around the gyroplane body (gyroplane fuselage and tail) and influence on its static stability. The main goal of the presented research was to find the magnitude of this influence. To measure this effect, the main stability derivatives changes of gyroplane body were investigated.

Design/methodology/approach

The CFD analysis of the complete gyroplane was made. Computation was performed for the model of gyroplane which was equipped with the two sub-models of the main rotor and the engine-powered propeller. Both of them were modelled as the actuator discs. This method allows to compute the aerodynamic impact of rotating components on the gyroplane body. All aerodynamic analysis was made by the MGAERO software. The numerical code of the software bases on the Euler flow model. Next, the resulting aerodynamic coefficients were used to calculate the most important stability derivatives of the gyroplane body.

Findings

The result obtained by computation presents the change in the most important aerodynamic coefficients and stability derivatives of the gyroplane body caused by the impact of its main rotor. Moreover, the result includes the change of the aerodynamic coefficients and stability derivatives caused by change of the main rotor configuration (change of rotation rate and angle of incidence) and change of the flight condition (gyroplane angle of attack sideslip angle and flight speed).

Practical implications

Analysis of the main rotor impact will be very useful for evaluation of dynamic stability of the light gyroplane. Moreover, the results will be helpful to design the horizontal and vertical tail for the light gyroplane.

Originality/value

This paper presents the method of the numerical analysis of the static stability of the light gyroplane’s body. The results of analysis present the impact of disturbance generated by the rotating main rotor on the static stability of the gyroplane body. Moreover, the impact of the main rotor configuration change and the flight condition change on the static stability were investigated too. The evaluation of the gyroplane’s body static stability was made by the stability derivatives. The methodology and obtained result will be very useful for analysis of the dynamic stability of the light gyroplanes. Moreover, the results will be helpful during design the main components of the gyroplane like vertical and horizontal tail.

Details

Aircraft Engineering and Aerospace Technology, vol. 89 no. 5
Type: Research Article
ISSN: 1748-8842

Keywords

Article
Publication date: 14 June 2011

Huaishu Li, Yanhui Lai, Wu Qiang and Xiang Dong

In order to research the law of the low‐frequency power oscillation which often exists in the synchronous generator rectification system, the purpose of this paper is to study…

Abstract

Purpose

In order to research the law of the low‐frequency power oscillation which often exists in the synchronous generator rectification system, the purpose of this paper is to study theoretical analysis and numerical calculation on the static stability of the system.

Design/methodology/approach

Different from the common three‐phase synchronous generator operating in large power networks, the stability of synchronous generator rectification systems is much more difficult to analyze because of its nonlinear loads. Some papers have analyzed the stability of the synchronous generator rectification system and presented different parameter conditions of system stability, but since factors that influence the system stability are complex, the essence of this kind of oscillation is not completely known yet. By considering rectification systems as an equivalent to DC circuits, the correct circuit model which is necessary to analyze the rectification systemic stability is set up, the changing law and relationship of various parameters under mini‐disturbances is analyzed, a linear differential equation about the DC‐side average current is derived, the stability of the synchronous generator rectification system is analyzed and deduced by using Hull criterion, all parameters influencing system stability are calculated and analyzed, and their ranges for a stable rectification system are given. Also, the reason why and how the parameters affect system stability is explained.

Findings

The operational stability of synchronous generator rectification systems is completely and correctly recognized.

Practical implications

The paper has a reference value for the design and safe operation of synchronous generator rectification systems.

Originality/value

The paper puts forward system stability criterion and gives a rational physical explanation about system stability.

Details

Kybernetes, vol. 40 no. 5/6
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 26 July 2011

Tristan Nguyen

In the recent financial crisis, many observers have assigned monetary policy a central role in the crisis. Specifically, they claim that excessively easy monetary policy by the…

2392

Abstract

Purpose

In the recent financial crisis, many observers have assigned monetary policy a central role in the crisis. Specifically, they claim that excessively easy monetary policy by the Federal Reserve in the first half of the decade helped to cause a bubble in housing prices in the USA. The purpose of this paper is to analyze the role of monetary policy within the regulatory frameworks of financial markets.

Design/methodology/approach

The authors show within a macroeconomic framework a possible trade‐off between price stability and financial stability by differentiating between a technology‐driven bubble and an animal spirit bubble. In their conclusion: if there is a trade‐off between price stability and financial stability, the central bank will have to make a choice between the two objectives. In that case, the question arises of which of the two objectives should take precedence: price stability or financial stability?

Findings

From this analysis, the authors conclude that a central bank which uses a lexicographic ordering favoring price stability over other objectives is likely to fuel the boom inadvertently (in the case of a technology‐driven bubble) or will decide to do nothing (in the case of an animal spirit bubble) allowing a process of excessive credit creation. The latter seems to be what happened between 2003 and 2008.

Practical implications

If one wants to reduce the likelihood of future major financial busts, it must be accepted that the central banks (especially the Fed and the ECB) cannot only be responsible for price stability. Maintaining financial stability by preventing excesses in financial markets should be an equally important objective.

Originality/value

The paper gives a new perspective on the role of monetary policy within the regulatory framework. With this macroeconomic framework, the authors are able to show possible trade‐offs between price stability and financial stability. The micro‐ and macro‐prudential approach of this paper is a useful contribution to the discussion about regulatory reforms of financial markets.

Details

Journal of Financial Regulation and Compliance, vol. 19 no. 3
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 10 April 2009

Gui‐Ju Shi, Jin‐Fang Han, Jun‐Ling Gao and Qing‐Yin Wang

The purpose of this paper is to discuss the Schur D‐stability and the vertex stability of interval matrices (including point matrix obviously). Some new sufficient conditions…

170

Abstract

Purpose

The purpose of this paper is to discuss the Schur D‐stability and the vertex stability of interval matrices (including point matrix obviously). Some new sufficient conditions (criteria) are proposed which guarantee the interval matrix is Schur D‐stable. This results are shown to be less conservative than those in recent literatures. In addition, two equivalence relations between the Schur D‐stability and the vertex stability of interval matrices will be proposed and a new Schur D‐stability range of an interval matrix presented.

Design/methodology/approach

Matrix eigenvalues theory and matrix measure approach.

Findings

Several simple sufficient conditions (criteria) for guaranteeing the Schur D‐stability of interval matrices are derived, two equivalence relations between the Schur D‐stability and the vertex stability of interval matrices are proposed, and a new Schur D‐stability range of an interval matrix is presented.

Research limitations/implications

Control theory or stability theory. These stability criterion possess simple forms and provide useful tools to check Schur D‐stability of interval matrices (including point matrix) at first stage.

Practical implications

The paper provides useful tools to check Schur D‐stability of interval matrices (including point matrix) at first stage.

Originality/value

Two equivalence relations between the Schur D‐stability and the vertex stability for general interval matrices (including point matrix) are proposed, such that the conditional limitations for tridiagonal matrix in recent papers are broken. A new Schur D‐stability range of an interval matrix is presented, and several simple sufficient conditions are obtained which guarantee the Schur D‐stability of interval matrices (including point matrix).

Details

Kybernetes, vol. 38 no. 3/4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 10 January 2024

Betul Kurtoglu and Dilek Durusu-Ciftci

This study aims to examine the interrelationship between financial stability and economic growth with a comprehensive analysis.

Abstract

Purpose

This study aims to examine the interrelationship between financial stability and economic growth with a comprehensive analysis.

Design/methodology/approach

The panel Granger causality testing approach is carried out to the panels of the Fragile Five (F5) and the Group of Seven (G7) countries for the period 1998–2020. To capture the different aspects of financial stability the authors use eight different indicators.

Findings

The findings reveal some important implications: the relationship between financial stability and economic growth is sensitive to the financial stability indicators for both the F5 and G7 countries. The stability indicators related to the credit market contain much more causality relationship with economic growth than the indicators related to the stock market. Z-score and provisions to nonperforming loans (NPLs) are among the two variables with the highest causality relationship with economic growth. The least number of causality link is found for the Regulatory Capital Ratio and Stock Price Volatility in F5 countries and Credit Ratio, NPLs and Stock Price Volatility in G7 countries. Economic growth affects financial stability through credit market stability indicators and mostly for the F5 countries. No causal relationship is found for any of the financial stability indicators of Canada, the UK and the USA from economic growth to financial stability.

Originality/value

Since the linkages between financial stability and economic growth may vary due to country/group specific differences, apart from the previous studies, the authors select two different groups of countries in terms of financial stability and economic size.

Details

Journal of Financial Economic Policy, vol. 16 no. 2
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 25 December 2023

Nemer Badwan, Besan Saleh and Montaser Hamdan

This paper aims to investigate the determinants that contribute to the financial stability and banking sector of Palestinian banks listed on the Palestine Stock Exchange (PEX) by…

Abstract

Purpose

This paper aims to investigate the determinants that contribute to the financial stability and banking sector of Palestinian banks listed on the Palestine Stock Exchange (PEX) by using yearly data for the years 2012–2022.

Design/methodology/approach

Pooled ordinary least squares (OLS) and two-stage least squares (2SLS) were used to identify the variables and factors affecting the financial stability and banking sector of Palestinian banks. The study’s data were collected from the banks listed on PEX and from the yearly reports posted on the Palestine Monetary Authority’s (PMA) webpage over the years from 2012–2022. According to this research’s analysis, SMEs loans and capital sufficiency have a statistically significant positive impact on the stability of Palestinian banks. Unobserved heterogeneity, simultaneity and dynamic endogeneity are taken into account when using the 2SLS regression approach to adjust for the study endogeneity factor.

Findings

The study’s findings show that some factors and determinants might have both good and negative effects on financial stability and banking sector. Loans to small and medium-sized businesses (SMEs) and enough capital are two characteristics that statistically have a major favourable impact on the stability of Palestinian banks since they help the banks withstand deficits. A further potential discovery relates to the favourable effects of financial inclusion (FI) and digital financial services (DFS) on the stability of banks.

Research limitations/implications

This research has faced some limitations, such as the lack of a defined index from the regulatory organizations, this research is based on information from bank annual accounts. It has mostly relied on self-developed or World Bank indexes. Furthermore, the research solely used information from the supply side (banks); demand-side data were not taken into consideration.

Practical implications

This paper has managerial implications for stability of banking sector. The Palestine Monetary Authority, as the central bank, must increase the percentage of bank loans directed to small and medium-sized companies and oblige bank management to adhere to adequate capital standards, which contributes to strengthening the Palestinian banking sector and increasing its profits. The study findings advise banks that are enjoying financial stability to speed up the pace of FI and DFSs because most of these reliable banks have relatively low FI ratios. PMA is responsible for preserving the stability of the financial system. PMA, decision makers and banks management must retain adequate liquidity in their institutions and raise client collateral expectations to raise credit conditions.

Originality/value

This paper adds some contributions to the literature. To adjust for discrepancies between various types of banks, the authors concentrate on conventional and Islamic banks, which enables us to use a homogenous data set as opposed to depending on dichotomous variables. The authors used Z-scores, which have recently been used in research, to measure stability and FI at the level of specific institutions. This research contributes in some key aspects that no prior research has addressed. Conventional banks are different from Islamic banks, and a number of issues might impact their stability. To evaluate the connection between FI and DFSs, it is important to consider the actions of bank regulators.

Details

Journal of Financial Regulation and Compliance, vol. 32 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 24 October 2023

Evans Kulu and Bismark Osei

As an effort to support the quest for a stable financial sector, this study aims to determine the factors that contribute to the financial stability gap in sub-Saharan Africa…

Abstract

Purpose

As an effort to support the quest for a stable financial sector, this study aims to determine the factors that contribute to the financial stability gap in sub-Saharan Africa (SSA).

Design/methodology/approach

The estimation techniques used include the fixed and random effect, system general methods of moments and dominance analysis. The data used is annual data for 33 SSA countries, covering the period 2007 to 2018.

Findings

Key findings from the analyses indicate that nonperforming loans increase gaps in financial stability while regulatory quality, control of corruption, political stability and appreciation of the local currency reduce the financial stability gap in SSA.

Research limitations/implications

The absence of a specific metric for measuring the financial stability gap appears to be the limitation of this study. Its existence could improve the discussion and also make replicability easier. However, this study relies on a measure introduced by Kulu et al. (2022b), which is also acceptable and quite popular in the literature.

Originality/value

To the best of the authors’ knowledge, this study is the first in the finance literature to estimate the determinants of the financial stability gap in SSA.

Details

Journal of Financial Economic Policy, vol. 16 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 12 September 2023

Norfaizah Othman, Mariani Abdul-Majid and Aisyah Abdul-Rahman

This paper aims to determine the effect of equity financing on bank stability during normal and crisis periods.

Abstract

Purpose

This paper aims to determine the effect of equity financing on bank stability during normal and crisis periods.

Design/methodology/approach

This study uses a static panel regression that includes pooled ordinary least square, random effect and fixed effect model to examine the influence of equity financing on bank stability. In estimating bank stability during a financial crisis, the authors predict the occurrence of a crisis using the early warning system (EWS). The authors then used z-score to measure Islamic banks’ stability.

Findings

Islamic banks that offer equity financing structure are more stable compared to Islamic banks without such structure. Islamic banks with medium equity financing have highest stability relative to Islamic banks with high or low equity financing. During crises, the Islamic banks with equity financing structure remain relatively stable compared to other Islamic banks.

Research limitations/implications

The sampling coverage could have included a larger number of countries and banks.

Practical implications

The authorities need to strengthen the banking framework to support the Islamic financial products by encouraging a wider use of risk-sharing instruments. Besides using a debt-like financing structure, Islamic banks should also place emphasis on equity financing in instilling the banking sector stability. In monitoring banks with equity financing, the authorities may need to look into the level of equity financing.

Social implications

Besides avoiding riba and gharar in financing, equity financing encourages cooperation and participation among society as they share the risks.

Originality/value

This paper analyses the effect of equity financing on the Islamic banks stability during normal and crisis periods. This paper further examines the intensity of the equity financing and its influence on bank stability.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 6
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 20 September 2023

Ricardo Figueiredo Belchior and Roisin Lyons

Entrepreneurial intention (EI) has been studied prolifically, as a precursor to entrepreneurial action, and a desired outcome of entrepreneurship education. Yet, the paucity of…

Abstract

Purpose

Entrepreneurial intention (EI) has been studied prolifically, as a precursor to entrepreneurial action, and a desired outcome of entrepreneurship education. Yet, the paucity of extant studies that analyze its temporal stability has been noted. This paper aims to address this gap by studying the temporal stability of EI, investigating its persistence as an attitudinal state over time.

Design/methodology/approach

A series of intraindividual and group-level longitudinal analyses were undertaken, over an 11-year period, using a student sample from Portugal. The authors highlight the magnitude of EI change over time, where item-structure, relative and absolute stability and group and individual-level EI changes are all considered.

Findings

Results indicate an initially strong to moderate EI item-structure stability and relative stability over the first five years, with moderate signs of deterioration. This deterioration becomes even more pronounced across the full 11-year period. Regarding EI absolute stability, while college students (as a group) did not display a general tendency to develop higher or lower EI during the first five years, a small deterioration was found over the 11-year period. At the individual level, EI instability was detected, and this increased with time. Finally, the exploratory results suggest that entrepreneurship education may buffer the deterioration of EI.

Practical implications

The findings provide a more nuanced reasoning for dampened EI–entrepreneurial behavior associations and highlight key determinants of EI change, which can inform educational experts and policymakers.

Originality/value

The legitimacy of the EI field lays heavily on the existence of a stable EI construct and a strong relationship between intentions and behavior. The methodology provides a new and more complete picture of EI’s temporal stability.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 18 no. 1
Type: Research Article
ISSN: 1750-6204

Keywords

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