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1 – 10 of over 11000James D. Tripp, Peppi M. Kenny and Don T. Johnson
As of 1982, federal credit unions were allowed to add select employee groups and thus create institutions with multiple-group common bonds. We examine the efficiency of single…
Abstract
As of 1982, federal credit unions were allowed to add select employee groups and thus create institutions with multiple-group common bonds. We examine the efficiency of single bond and multiple bond federal-chartered credit unions by using data envelopment analysis (DEA), a non-parametric, linear programming methodology. Results indicate that multiple bond credit unions have better pure technical efficiency than single bond credit unions. However, single bond credit unions appear to be more scale efficient than the multiple bond credit unions. Our results also indicate that members of multiple bond credit unions may derive greater wealth gains than members of single bond credit unions.
Zubeyir Kilinc, Hatice Gokce Karasoy and Eray Yucel
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…
Abstract
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.
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With the aim of analysing the growth and developmental aspects of bank credit allocations in the selected countries, the primary requirements are to see the trends of the lead…
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With the aim of analysing the growth and developmental aspects of bank credit allocations in the selected countries, the primary requirements are to see the trends of the lead variables, credit, gross domestic product (GDP) and Human Development Index (HDI), and get ideas on the descriptive statistics. The present chapter has attempted to do all these primary analyses across the countries for the period of 1990–2019. The study observes that the levels of GDP have increased for all the countries throughout the entire period with some downhill breaks during the global financial crisis of 2007–2009. There are also similar types of upward trends in the credit delivery to the private sectors of the countries over time with some exceptions in the second phase (2001–2010) for Germany and the first phase (1990–2000) for Brazil. On the other hand, the HDI values for all the countries have improved over time in the entire period of time and the developing countries in the list have progressed more in all three indicators, GDP, credit and HDI, compared to that of the developed countries in the list. The correlation analysis of credit with GDP and HDI shows positive coefficients in many of the developed and developing countries which primarily justify the existence of strong linkages of their financial sectors with their real sector and overall development.
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The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose…
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The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose piecemeal. In the absence of banks and treasuries that exchanged paper monies at face value for specie monies on demand, colonial governments experimented with other ways to anchor their paper monies to real values in the economy. These mechanisms included tax-redemption, land-backed loans, sinking funds, interest-bearing notes, and legal tender laws. I assess and explain the structure and performance of these mechanisms. This was monetary experimentation on a grand scale.
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Sequel to the results of the preceding chapter that depicted positive associations of credit with the indicators of growth and development, the present chapter aims at…
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Sequel to the results of the preceding chapter that depicted positive associations of credit with the indicators of growth and development, the present chapter aims at investigating the interrelationships of credit with GDP and HDI separately in a bivariate framework for the selected countries for the period 1990–2019. For this purpose, this chapter first develops a theoretical model in line with the Barro (1991) model where bank credit is introduced as a good institutional component of endogenous growth. Then, it goes for a time series exercise to establish the long-run relations and short-run dynamics for the pairs of variables, credit-GDP and credit-HDI, to justify the linkages between the financial sector and the real sector. The study arrives at mixed results across the countries. In many cases, credit has been identified to be strongly related to income and development indicators in the long run through cointegrated stable relationships. Furthermore, credit makes a causal influence on GDP and HDI in some developed countries whereas GDP becomes a causal factor to credit in some developing countries. It is thus recommended for further aggravation of the two sectors’ linkages under the patronisations of the governments and the monetary authorities of the countries to have high growth of income and development so that a part of the sustainable development goal can be achieved through the financial sector.
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