The last few years have witnessed a rapid development in digital finance that may threaten the manner in which traditional financial services are being used. It opens up new opportunities for low-income groups and small businesses that have limited or no access to formal financial services....

Exploiting the introduction of the ECB's tiering system for remunerating excess reserve holdings, we document the importance of access to the money market for bank lending. We show that the two-tier system produced positive wealth effects for banks with excess reserves and encouraged a...

We assess the impact of contingent convertible (CoCo) bonds and the wealth transfers they imply conditional on conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks try to maintain risk-taking incentives by issuing CoCo bonds, when...

Despite evidence on the social and economic importance of financial inclusion (FI), the relationship between FI and bank profitability remains unclear. In this research, we evaluated the association between financial inclusion and the performance of banks in Palestine using dynamic panel...

The Little Data Book on Financial Inclusion 2022 is a pocket edition of the Global Findex Database 2021. The Global Findex is the world's mostcomprehensive database on financial inclusion. It is also the only global demand-side data source allowing for global and regional cross-country analysis...

Previous literature supports the view that the financial inclusion leads to economic growth and helps alleviate poverty; however, it is still unclear whether financial inclusion increases bank profitability. The study assumes that financial inclusion is significant in enhancing the economy and...

This paper discusses first the role of mobile money accounts to enhance financial inclusion towards vulnerable groups in developing countries in the light of recent empirical evidence. Second, we explore the role of regulation to address risks to consumers and the financial system arising from...

After the recent global financial crisis of 2008, the attention of researchers and politicians has focused on both financial inclusion and bank stability. However, we still know little of how the former impacts the stability of financial services providers. This paper focuses on financial...

Purpose This study estimates impact of remittances from internal migration on households' use of bank services in Vietnam. Design/methodology/approach This study uses data from the Vietnam Household Living Standards Survey and the two-stage least squares method (2SLS). Findings The results show...

Lately, the global banking services industry has faced numerous challenges: the digitalization, increased competition, the instability of monetary and foreign exchange markets, and the volatility of exchange rates. However, at present, banks are facing the greatest challenge of all that is,...

Traditional organizations are strongly encouraged by emerging digital customer behavior and digital competition to transform their businesses for the digital age. Incumbents are particularly exposed to the field of tension between maintaining and renewing their business model. Banking is one of...

The digital economy has risen dramatically in the global environment, and many developing countries, including African countries, have seen a spike in digital activity over recent years. The digital economy's growth has resulted in an increase in digital financial services (DFS) in Africa and...

This paper investigates the relationship between legal origin and banks' risk-taking behavior. We employ GMM to study a sample of both Islamic and conventional banks from 14 dual banking economies from 2005-2018. Our findings can be summarized as follows: (a) bank risk-taking and legal origin...

The growth of so-called “shadow banking” was a significant contributor to the financial crisis of 2008, which had huge social costs that we still grapple with today. Our financial regulatory system still hasn’t fully figured out how to address the risks of the derivatives, securitizations,...

We analyze the expectations of U.S. banks using the construct of “expected loss” from loan loss provisions and find evidence of departure from rational expectations, in particular overreaction to losses observed in the recent past. Our findings are explained by a model of belief distortion...

Chinese banks have become the largest cross-border creditors for almost half of all emerging market and developing economies (EMDEs). While they look closer to other EMDE banks in terms of ownership and balance-sheet structure, their global footprint resembles that of banks from advanced...

Banking plays a crucial role in the economic development of developing countries. Today’s banking. sector is considered a prime sector for economic reforms and social-economic development. Rivalry among banking is quickly rising due to the enactment of technology in the banking business....

We propose a methodology for measuring the market-implied capital of banks by subtracting from the market value of equity (market capitalization) a credit spread-based correction for the value of shareholders’ default option. We show that without such a correction, the estimated impact of a...

We examine trends in bank competition since the early 2000s. The Lerner index—arguably the most commonly used measure—shows evidence of a marked increase in market power in advanced economies, especially after the global financial crisis. But other frequently used indicators of banking...

The coupling of data and digital innovation opens the way for new business in the financial services sector, where customers are placed at the centre of decisions and data can help to develop customer knowledge. To carry out our research, we adopted a multi-case study approach to explore how a...

This paper examines the impact of long-run earthquake experiences on banks’ business practices. Using earthquake and bank branch data for California, we find that banks that have had more intense experiences change their business practices: they have a smaller exposure to real estate and...

Today, banking industry has shifted from the traditional system and branchless mood to digital. In the latest e-banking system, mobile banking has opened a new window for both, customers and the service providers. The objective of this research project was to analyze the influence of mobile...

The impact of Demonetization and Financial Inclusion on Indian Bank Efficiency using three measures namely, New Profit, New Cost, and New Technical, across Size and Ownership groups and difference in the impact of the event across groups, using RANOVA is examined. Significant, albeit not uniform...

Aim: The main aim of this research was to investigate the factors that have been limiting the spread of mobile banking services in Pakistan.Method: The research adopted a primary quantitative methodology in which a 5- point based Likert scale questionnaire was distributed. Responses of 274...

The early stages of banking and finance in Turkey were one of its brightest periods, even though it was the toughest because of lack of capital and unfavourable initial conditions. The finance and banking conception was quite rational and potential crises were eliminated through careful choices....

In this paper, we show the benefits of bank asset diversification for the economy. A more diversified stream of earnings enables banks to better absorb negative shocks, leading to increased and more stable lending. This, in turn, provides positive spillovers to the economy. We demonstrate that...