In their traditional function, commercial banks engage in recourse loan sales while evaluating clients' creditworthiness and assuming risk. However, banks face regulatory constraints that prevent them from fully exploiting this activity. Loan sales with recourse are treated as deposits, and...

Financial volatility increasingly challenges firms to maintain operational sustainability; yet the mechanisms through which cash flow uncertainty (CFU) shapes environmental practices remain unclear. Based on an international unbalanced panel of 14,798 firm-year observations (2010–2021), this...

This paper derives a closed-form expression for the expected discounted value of aggregate cash flows when arrival times follow a Poisson process but both the time horizon and the number of arrivals are finite. The result provides a tractable analytical formula for the expected discounted sum...

This paper analyzes the affordability of cash in an international context. After outlining why cash should remain a core component of a diversified payment mix within a resilient and efficient payment system, we discuss methodological challenges associated with measuring the costs of payment...

We study the transmission of rising interest rates to consumption using granular customer data from a major bank in Denmark. We show that households with adjustable-rate mortgages gradually reduced spending and increased deposits as market rates soared in 2022 but made no further spending cuts...