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This dissertation consists of four chapters, each of which studies monetary policy, financial stability, or their interaction.Chapter one shows empirically that, contrary to theoretical claims, raising interest rates increases bank leverage. I propose and empirically validate the loan-loss mechanism to explain this result: contractionary shocks increase loan losses, reduce bank profits and equity, and ultimately increase bank leverage. I develop a banking model where floating-rate loans entail a trade-off between interest rate risk and credit risk, which generates the loan-loss mechanism. Using microdata, I provide empirical evidence consistent with floating-rate loans hedging interest rate risk at the expense of generating loan losses.Chapter two examines the effects of central bank meetings on stock returns. Cieslak et al. (2019) show that stock returns in the US and internationally are driven by even-week meetings of the Federal Open Market Committee. I find that the US result and the proposed mechanism do not hold out-of-sample, losing robustness as early as 2004. Prior to 2004, there appear to be outliers driving the result. Finally, I show that the international result does not apply in either the UK or Japan.Chapter three studies the consequences of including financial stability among the central bank's objectives when market players are strategic. Our model predicts that central banks underreact to economic shocks, a prediction consistent with the Federal Reserve’s behaviour during the 2023 banking crisis. Policymakers’ stability concerns bias investors' choices, inducing inefficiency. If central banks have private information about their policy intentions, the equilibrium forward guidance is vague because fully informative communication is not credible. A "kitish" central banker, who is less concerned about stability, reduces these inefficiencies.Chapter four studies how financial and production networks affect the transmission of financial shocks to the re

This special issue of the Eurasian Economic Review delves into the critical relationships between macro-financial policy frameworks and environmental sustainability, emphasizing the urgent challenges posed by climate change, biodiversity loss, and environmental degradation. These environmental crises pose significant threats to global economic and financial stability, underscoring the necessity of integrating environmental considerations into macro-financial policies to foster sustainability and resilience in economic policymaking. Through a collection of research papers, this issue explores innovative strategies for developing comprehensive policy frameworks that harmonize monetary, financial, and fiscal policies with environmental objectives. It emphasizes the need for advanced methods to assess and manage the financial risks of climate change and environmental degradation. Underscoring the need for a multidisciplinary approach, the research advocates for the collaboration of economists, environmental scientists, policymakers, and stakeholders to develop effective macro-financial policies. These policies aim to mitigate environmental risks, enhance environmental sustainability, and preserve biodiversity. The issue calls for further research to refine models that accurately predict the macro-financial impacts of environmental risks and assess the effectiveness of policy measures, paving the way for a sustainable future in the face of escalating environmental challenges.

En bostadsrättsförening kan välja att utkontraktera vissa tjänster till externa aktörer eller sköta det i egen regi. I dagens samhälle är det allt vanligare att bostadsrättsföreningar anlitar extern förvaltning, och allt färre sköter det i egen regi. Anledningen till detta är att föreningen kan få hjälp med fastighetsförvaltningen. Den här studien ämnar undersöka motiv att välja extern förvaltning utifrån en bostadsrättsförenings perspektiv och om detta kan påverka den finansiella stabiliteten. Studien grundar sig på två delar. Den första delen är en enkätstudie bland bostadsrättsföreningar på Södermalm i Stockholm, vilken genomförs i syfte att ta reda på motiv att anlita externa förvaltningstjänster. Den andra delen är en jämförelse mellan bostadsrättsföreningars årsredovisningar från år 2022, vilken genomförs i syfte att undersöka den finansiella stabiliteten. Jämförelsen baseras på tre nyckeltal: räntekänslighet, årsavgift per kvadratmeter upplåten med bostadsrätt samt skuldsättning per kvadratmeter. Resultatet visar att de tre främsta motiven är tid, kompetens och storlek på bostadsrättsföreningen. Motiven tid och kompetens syftar på att föreningsarbetet ställer höga krav på tidsåtgång och kompetens för lekmän. Vidare har uppsatsen funnit att ju större bostadsrättsförening, i termer av antal bostadslägenheter, desto större sannolikhet är det att extern förvaltning anlitas. Uppsatsen har även funnit att en bostadsrättsförening, som anlitat extern förvaltning, har större möjlighet att uppnå eller bibehålla en god finansiell stabilitet. Resultatet visar att det förekommer märkbara skillnader för medelvärdet av räntekänslighet och skuldsättning per kvadratmeter beroende på om föreningen har extern förvaltning eller inte. Bostadsrättsföreningar med extern förvaltning har i båda fallen ett lägre medelvärde, vilket signalerar starkare finansiell stabilitet. Skillnaden i medelvärdet av årsavgift per kvadratmeter upplåten med bostadsrätt var inte lika uppenbar. Dock, A housing cooperative can choose to outsource some of its services to an external part or manage it internally. In today’s society it’s common for housing cooperatives to choose external property management, while fewer handle it internally. The main reason for this is to receive support regarding their property management. This study aims at examining motives for choosing external management from the perspective of a housing cooperative and how this can affect the financial stability. The study is based on two parts. The first part is a questionnaire survey among housing cooperatives on Södermalm in Stockholm, conducted to identify the motives for hiring external management services. The second part is a comparison between their annual reports from the year 2022, conducted to examine financial stability. The comparison is based on three key indicators: interest rate sensitivity, annual fee per square meter of cooperative housing and debt per square meter. The result shows that the three main motives are time, competence and size of the housing cooperative. The motives time and competence refer to the fact that the association work makes too high demands on time and expertise for laypeople. Furthermore, our findings show that the larger the housing cooperative is, in terms of number of residential apartments, the greater the likelihood of hiring external management. Our findings show that a housing cooperative that has engaged external management, has a greater opportunity to achieve or maintain financial stability. There are noticeable differences in the mean value of interest rate sensitivity and debt per square meter, depending on whether the housing cooperative has external management or not. In both cases, the housing cooperatives with external management have a lower mean value which indicates a stronger financial stability. The difference in mean value of annual fee per square meter of cooperative housing was not as obvious. Though, the first two key indic

This special issue of the Eurasian Economic Review delves into the critical relationships between macro-financial policy frameworks and environmental sustainability, emphasizing the urgent challenges posed by climate change, biodiversity loss, and environmental degradation. These environmental crises pose significant threats to global economic and financial stability, underscoring the necessity of integrating environmental considerations into macro-financial policies to foster sustainability and resilience in economic policymaking. Through a collection of research papers, this issue explores innovative strategies for developing comprehensive policy frameworks that harmonize monetary, financial, and fiscal policies with environmental objectives. It emphasizes the need for advanced methods to assess and manage the financial risks of climate change and environmental degradation. Underscoring the need for a multidisciplinary approach, the research advocates for the collaboration of economists, environmental scientists, policymakers, and stakeholders to develop effective macro-financial policies. These policies aim to mitigate environmental risks, enhance environmental sustainability, and preserve biodiversity. The issue calls for further research to refine models that accurately predict the macro-financial impacts of environmental risks and assess the effectiveness of policy measures, paving the way for a sustainable future in the face of escalating environmental challenges.

In the United States, there has been a noticeable shift toward sustainable finance practices in the integration of environmental, social, and governance (ESG) aspects into financial institutions. This change is in line with general world patterns. Green bonds, impact investing, ESG investing, and funding for renewable energy are among the increasingly well-liked sustainable finance strategies. Recent literature reviews demonstrate the complexity and breadth of sustainable finance practices, as well as the advancements in technology and law that have propelled this growth. This study aims to investigate the development, implementation, and outcomes of sustainable financial practices in the United States. It focuses on understanding how these activities contribute to financial stability, environmental sustainability, and social fairness. The study aims to identify the primary drivers behind the adoption of sustainable financing, in addition to providing helpful guidance on how governments, investors, and financial institutions may incorporate environmental, social, and governance (ESG) considerations into their financial decision-making processes. Secondary data sources, such as academic publications, reports from governmental and non-governmental organizations, trade journals, and media outlets are investigated using a qualitative technique. Using thematic analysis and cross-case synthesis, important issues, success factors, and barriers to the adoption of sustainable financing are identified. Ethical concerns have been taken into consideration during the study method. The analysis leads to the conclusion that sustainable finance practices reduce the risks associated with social unrest and environmental degradation, thereby improving financial stability. By investing in clean technology and renewable energy, they promote environmental sustainability and social justice through inclusive financial systems. However, problems like data scarcity and greenwashing persist

In the United States, there has been a noticeable shift toward sustainable finance practices in the integration of environmental, social, and governance (ESG) aspects into financial institutions. This change is in line with general world patterns. Green bonds, impact investing, ESG investing, and funding for renewable energy are among the increasingly well-liked sustainable finance strategies. Recent literature reviews demonstrate the complexity and breadth of sustainable finance practices, as well as the advancements in technology and law that have propelled this growth. This study aims to investigate the development, implementation, and outcomes of sustainable financial practices in the United States. It focuses on understanding how these activities contribute to financial stability, environmental sustainability, and social fairness. The study aims to identify the primary drivers behind the adoption of sustainable financing, in addition to providing helpful guidance on how governments, investors, and financial institutions may incorporate environmental, social, and governance (ESG) considerations into their financial decision-making processes. Secondary data sources, such as academic publications, reports from governmental and non-governmental organizations, trade journals, and media outlets are investigated using a qualitative technique. Using thematic analysis and cross-case synthesis, important issues, success factors, and barriers to the adoption of sustainable financing are identified. Ethical concerns have been taken into consideration during the study method. The analysis leads to the conclusion that sustainable finance practices reduce the risks associated with social unrest and environmental degradation, thereby improving financial stability. By investing in clean technology and renewable energy, they promote environmental sustainability and social justice through inclusive financial systems. However, problems like data scarcity and greenwashing persist

In the United States, there has been a noticeable shift toward sustainable finance practices in the integration of environmental, social, and governance (ESG) aspects into financial institutions. This change is in line with general world patterns. Green bonds, impact investing, ESG investing, and funding for renewable energy are among the increasingly well-liked sustainable finance strategies. Recent literature reviews demonstrate the complexity and breadth of sustainable finance practices, as well as the advancements in technology and law that have propelled this growth. This study aims to investigate the development, implementation, and outcomes of sustainable financial practices in the United States. It focuses on understanding how these activities contribute to financial stability, environmental sustainability, and social fairness. The study aims to identify the primary drivers behind the adoption of sustainable financing, in addition to providing helpful guidance on how governments, investors, and financial institutions may incorporate environmental, social, and governance (ESG) considerations into their financial decision-making processes. Secondary data sources, such as academic publications, reports from governmental and non-governmental organizations, trade journals, and media outlets are investigated using a qualitative technique. Using thematic analysis and cross-case synthesis, important issues, success factors, and barriers to the adoption of sustainable financing are identified. Ethical concerns have been taken into consideration during the study method. The analysis leads to the conclusion that sustainable finance practices reduce the risks associated with social unrest and environmental degradation, thereby improving financial stability. By investing in clean technology and renewable energy, they promote environmental sustainability and social justice through inclusive financial systems. However, problems like data scarcity and greenwashing persist

This thesis examines the expanding role of the European Central Bank (ECB) in integrating Global Health into its monetary policy framework, amid growing recognition that central banking responsibilities extend beyond traditional financial stability mandates. Historically focused on inflation control and economic stabilization, central banks have faced increasing pressure to address broader societal challenges, particularly in light of recent global health crises and environmental concerns. Using a pragmatic theoretical framework and qualitative analysis of ECB speeches and publications, this research explores how the ECB has adapted its policies to include considerations of Global Health and how it could further enhance these efforts in the future. The findings indicate a significant evolution in ECB discourse, with a marked increase in the incorporation of sustainability considerations, a shift catalyzed by the COVID-19 pandemic and heightened environmental awareness. This study contributes to academic discussions on the role of central banks in contemporary society, advocating for a holistic policy approach that balances economic and global health objectives. It proposes a dynamic decision-making process that integrates Health Impact Assessments and promotes intersectoral collaboration, aiming to enhance the efficacy of ECB policies and align them more closely with broader societal needs. By exploring both current practices and potential future improvements, this thesis underscores the necessity for central banks to evolve in response to the interconnected realities of today's global challenges.

In a world with an ever-changing economic landscape, the concept of financial stability can function as a buffer against the negative effects financial crises have on consumers' well-being and finances. Parallel to this, researchers are pushing marketers to move away from traditional marketing and instead focus on psychological well-being (PWB) and mindful consumption since this will grow efforts towards sustainability. Studies suggest that mindless consumption leads to financial stress, debt, and decreased well-being. Therefore, it is suggested that mindful consumption has a positive relationship with PWB and financial stability. However, there is currently a gap in the theoretical understanding regarding the impact of mindful consumption on PWB. The purpose of this thesis is to study the relationship between mindful consumption and PWB with a particular focus on how financial stability can explain this relationship. Drawing on a comprehensive review of existing literature, the following research questions were developed: RQ1: “How do the dimensions of mindful consumption (awareness, caring, and temperance) affect psychological well-being?” RQ2: “To what extent does financial stability contribute to the connection between the dimensionsof mindful consumption and psychological well-being?” This study uses a deductive approach with a quantitative internet survey strategy. The study had a total of 218 responses where the findings suggest that financial stability does not function as a bridge or link between mindful consumption and PWB. However, it was found that mindful consumption positively influences both financial stability and psychological well-being., I en värld med ett ständigt föränderligt ekonomiskt landskap kan begreppet finansiell stabilitet fungera som en buffert mot de negativa effekter finansiella kriser har på konsumenternas välbefinnande och ekonomi. Parallellt med detta driver forskare marknadsförare att gå bort från traditionell marknadsföring och istället fokusera på psykologiskt välbefinnande (PWB) och medveten konsumtion eftersom detta kommer att öka ansträngningarna mot hållbarhet. Studier tyder på att tanklös konsumtion leder till ekonomisk stress, skuldsättning och minskat välbefinnande. Därför föreslås det att medveten konsumtion har ett positivt samband med PWB och finansiell stabilitet. Emellertid finns det för närvarande en lucka i den teoretiska förståelsen angående effekten av medveten konsumtion på PWB. Syftet med denna avhandling är att studera sambandet mellan medveten konsumtion och PWB med särskilt fokus på hur finansiell stabilitet kan förklara detta samband. Med utgångspunkt i en omfattande genomgång av befintlig litteratur utvecklades följande forskningsfrågor: RQ1: "Hur påverkar dimensionerna av medveten konsumtion (medvetenhet, omtanke ochnykterhet) det psykiska välbefinnandet?" RQ2: "I vilken utsträckning bidrar finansiell stabilitet till sambandet mellan dimensionerna avmedveten konsumtion och psykiskt välbefinnande?" Denna studie använder en deduktiv metod med en kvantitativ internetundersökningsstrategi. Studien hade totalt 218 svar där resultaten tyder på att finansiell stabilitet inte fungerar som en bro eller länk mellan medveten konsumtion och PWB. Däremot visade det sig att medveten konsumtion har en positiv påverkan på både finansiell stabilitet och psykiskt välbefinnande.

This thesis brings a new approach to research of non-performing loans (NPLs), stepping away from the traditional macroeconomic and bank-specific focused literature by exploring the relationship between NPLs and natural disasters across all 50 US states, aiming to understand to what extent and how natural disasters affect financial instability as reflected by NPLs. Using fixed effects models with Beck and Katz robust standard errors the study analyses annual state-level NPL-ratio, a measure of NPLs to total loan portfolio value with natural disasters measured as the number of disasters, cost of disasters, and deaths from disasters. Macroeconomic variables are included as controls, the included variables are by personal income, unemployment rate, and tax collection. The studied period is 1984 to 2019. Support for the notion that the NPL ratio is affected by natural disasters is found, however, the results are conflicting as the number of disasters is found to increase the NPL ratio according to the theoretical expectation, however, not when interactions are added to the model. Whilst, contrary to previous research the number of deaths from disasters is found to decrease the NPL ratio. The results are thus deemed ambiguous. However, the thesis contributes to the field by highlighting the need for further research into similar research questions and providing a new approach to NPLs in the US context.

En bostadsrättsförening kan välja att utkontraktera vissa tjänster till externa aktörer eller sköta det i egen regi. I dagens samhälle är det allt vanligare att bostadsrättsföreningar anlitar extern förvaltning, och allt färre sköter det i egen regi. Anledningen till detta är att föreningen kan få hjälp med fastighetsförvaltningen. Den här studien ämnar undersöka motiv att välja extern förvaltning utifrån en bostadsrättsförenings perspektiv och om detta kan påverka den finansiella stabiliteten. Studien grundar sig på två delar. Den första delen är en enkätstudie bland bostadsrättsföreningar på Södermalm i Stockholm, vilken genomförs i syfte att ta reda på motiv att anlita externa förvaltningstjänster. Den andra delen är en jämförelse mellan bostadsrättsföreningars årsredovisningar från år 2022, vilken genomförs i syfte att undersöka den finansiella stabiliteten. Jämförelsen baseras på tre nyckeltal: räntekänslighet, årsavgift per kvadratmeter upplåten med bostadsrätt samt skuldsättning per kvadratmeter. Resultatet visar att de tre främsta motiven är tid, kompetens och storlek på bostadsrättsföreningen. Motiven tid och kompetens syftar på att föreningsarbetet ställer höga krav på tidsåtgång och kompetens för lekmän. Vidare har uppsatsen funnit att ju större bostadsrättsförening, i termer av antal bostadslägenheter, desto större sannolikhet är det att extern förvaltning anlitas. Uppsatsen har även funnit att en bostadsrättsförening, som anlitat extern förvaltning, har större möjlighet att uppnå eller bibehålla en god finansiell stabilitet. Resultatet visar att det förekommer märkbara skillnader för medelvärdet av räntekänslighet och skuldsättning per kvadratmeter beroende på om föreningen har extern förvaltning eller inte. Bostadsrättsföreningar med extern förvaltning har i båda fallen ett lägre medelvärde, vilket signalerar starkare finansiell stabilitet. Skillnaden i medelvärdet av årsavgift per kvadratmeter upplåten med bostadsrätt var inte lika uppenbar. Dock, A housing cooperative can choose to outsource some of its services to an external part or manage it internally. In today’s society it’s common for housing cooperatives to choose external property management, while fewer handle it internally. The main reason for this is to receive support regarding their property management. This study aims at examining motives for choosing external management from the perspective of a housing cooperative and how this can affect the financial stability. The study is based on two parts. The first part is a questionnaire survey among housing cooperatives on Södermalm in Stockholm, conducted to identify the motives for hiring external management services. The second part is a comparison between their annual reports from the year 2022, conducted to examine financial stability. The comparison is based on three key indicators: interest rate sensitivity, annual fee per square meter of cooperative housing and debt per square meter. The result shows that the three main motives are time, competence and size of the housing cooperative. The motives time and competence refer to the fact that the association work makes too high demands on time and expertise for laypeople. Furthermore, our findings show that the larger the housing cooperative is, in terms of number of residential apartments, the greater the likelihood of hiring external management. Our findings show that a housing cooperative that has engaged external management, has a greater opportunity to achieve or maintain financial stability. There are noticeable differences in the mean value of interest rate sensitivity and debt per square meter, depending on whether the housing cooperative has external management or not. In both cases, the housing cooperatives with external management have a lower mean value which indicates a stronger financial stability. The difference in mean value of annual fee per square meter of cooperative housing was not as obvious. Though, the first two key indic

This special issue of the Eurasian Economic Review delves into the critical relationships between macro-financial policy frameworks and environmental sustainability, emphasizing the urgent challenges posed by climate change, biodiversity loss, and environmental degradation. These environmental crises pose significant threats to global economic and financial stability, underscoring the necessity of integrating environmental considerations into macro-financial policies to foster sustainability and resilience in economic policymaking. Through a collection of research papers, this issue explores innovative strategies for developing comprehensive policy frameworks that harmonize monetary, financial, and fiscal policies with environmental objectives. It emphasizes the need for advanced methods to assess and manage the financial risks of climate change and environmental degradation. Underscoring the need for a multidisciplinary approach, the research advocates for the collaboration of economists, environmental scientists, policymakers, and stakeholders to develop effective macro-financial policies. These policies aim to mitigate environmental risks, enhance environmental sustainability, and preserve biodiversity. The issue calls for further research to refine models that accurately predict the macro-financial impacts of environmental risks and assess the effectiveness of policy measures, paving the way for a sustainable future in the face of escalating environmental challenges.

In this chapter, we discuss supervisory oversight and reporting systems during and after the financial crisis of 2007–2009. We also highlight past and current systemic weaknesses in the European Union and the United States. Accordingly, we present a conceptual framework for future regulatory reporting that enables near real-time banking supervision, opens new approaches to systemic risk monitoring, and incorporates cryptoassets seamlessly. By conducting a stakeholder analysis, we also accentuate this novel framework’s practical and operational challenges, where policymakers must play a moderating role in its implementation.

This thesis consists of four essays exploring risk creation in the banking sector. The essays examine how conflicting interests can compromise the objectivity, judgment, and decision making of economic agents. Consequently, they may prioritize their personal or institutional interests over the best interests of others or the entire financial system. Chapter 2 delves into the conflict of interest that arises when a bank serves as an investor in the stock market. Chapter 3 revisits the discussion of the potential misalignment between sovereign incentives and the collective interests of the currency union, particularly in the bond market. Chapter 4 draws attention to a situation where regulations in the banking sector may be advantageous for a government in the sovereign bond market. Finally, Chapter 5 looks at the flip side of the coin, examining how banks may be susceptible to moral hazard concerns in their FX lending decisions, given that they do not fully bear the consequences of their actions.

This special issue of the Eurasian Economic Review delves into the critical relationships between macro-financial policy frameworks and environmental sustainability, emphasizing the urgent challenges posed by climate change, biodiversity loss, and environmental degradation. These environmental crises pose significant threats to global economic and financial stability, underscoring the necessity of integrating environmental considerations into macro-financial policies to foster sustainability and resilience in economic policymaking. Through a collection of research papers, this issue explores innovative strategies for developing comprehensive policy frameworks that harmonize monetary, financial, and fiscal policies with environmental objectives. It emphasizes the need for advanced methods to assess and manage the financial risks of climate change and environmental degradation. Underscoring the need for a multidisciplinary approach, the research advocates for the collaboration of economists, environmental scientists, policymakers, and stakeholders to develop effective macro-financial policies. These policies aim to mitigate environmental risks, enhance environmental sustainability, and preserve biodiversity. The issue calls for further research to refine models that accurately predict the macro-financial impacts of environmental risks and assess the effectiveness of policy measures, paving the way for a sustainable future in the face of escalating environmental challenges.

In a world with an ever-changing economic landscape, the concept of financial stability can function as a buffer against the negative effects financial crises have on consumers' well-being and finances. Parallel to this, researchers are pushing marketers to move away from traditional marketing and instead focus on psychological well-being (PWB) and mindful consumption since this will grow efforts towards sustainability. Studies suggest that mindless consumption leads to financial stress, debt, and decreased well-being. Therefore, it is suggested that mindful consumption has a positive relationship with PWB and financial stability. However, there is currently a gap in the theoretical understanding regarding the impact of mindful consumption on PWB. The purpose of this thesis is to study the relationship between mindful consumption and PWB with a particular focus on how financial stability can explain this relationship. Drawing on a comprehensive review of existing literature, the following research questions were developed: RQ1: “How do the dimensions of mindful consumption (awareness, caring, and temperance) affect psychological well-being?” RQ2: “To what extent does financial stability contribute to the connection between the dimensionsof mindful consumption and psychological well-being?” This study uses a deductive approach with a quantitative internet survey strategy. The study had a total of 218 responses where the findings suggest that financial stability does not function as a bridge or link between mindful consumption and PWB. However, it was found that mindful consumption positively influences both financial stability and psychological well-being., I en värld med ett ständigt föränderligt ekonomiskt landskap kan begreppet finansiell stabilitet fungera som en buffert mot de negativa effekter finansiella kriser har på konsumenternas välbefinnande och ekonomi. Parallellt med detta driver forskare marknadsförare att gå bort från traditionell marknadsföring och istället fokusera på psykologiskt välbefinnande (PWB) och medveten konsumtion eftersom detta kommer att öka ansträngningarna mot hållbarhet. Studier tyder på att tanklös konsumtion leder till ekonomisk stress, skuldsättning och minskat välbefinnande. Därför föreslås det att medveten konsumtion har ett positivt samband med PWB och finansiell stabilitet. Emellertid finns det för närvarande en lucka i den teoretiska förståelsen angående effekten av medveten konsumtion på PWB. Syftet med denna avhandling är att studera sambandet mellan medveten konsumtion och PWB med särskilt fokus på hur finansiell stabilitet kan förklara detta samband. Med utgångspunkt i en omfattande genomgång av befintlig litteratur utvecklades följande forskningsfrågor: RQ1: "Hur påverkar dimensionerna av medveten konsumtion (medvetenhet, omtanke ochnykterhet) det psykiska välbefinnandet?" RQ2: "I vilken utsträckning bidrar finansiell stabilitet till sambandet mellan dimensionerna avmedveten konsumtion och psykiskt välbefinnande?" Denna studie använder en deduktiv metod med en kvantitativ internetundersökningsstrategi. Studien hade totalt 218 svar där resultaten tyder på att finansiell stabilitet inte fungerar som en bro eller länk mellan medveten konsumtion och PWB. Däremot visade det sig att medveten konsumtion har en positiv påverkan på både finansiell stabilitet och psykiskt välbefinnande.

This thesis brings a new approach to research of non-performing loans (NPLs), stepping away from the traditional macroeconomic and bank-specific focused literature by exploring the relationship between NPLs and natural disasters across all 50 US states, aiming to understand to what extent and how natural disasters affect financial instability as reflected by NPLs. Using fixed effects models with Beck and Katz robust standard errors the study analyses annual state-level NPL-ratio, a measure of NPLs to total loan portfolio value with natural disasters measured as the number of disasters, cost of disasters, and deaths from disasters. Macroeconomic variables are included as controls, the included variables are by personal income, unemployment rate, and tax collection. The studied period is 1984 to 2019. Support for the notion that the NPL ratio is affected by natural disasters is found, however, the results are conflicting as the number of disasters is found to increase the NPL ratio according to the theoretical expectation, however, not when interactions are added to the model. Whilst, contrary to previous research the number of deaths from disasters is found to decrease the NPL ratio. The results are thus deemed ambiguous. However, the thesis contributes to the field by highlighting the need for further research into similar research questions and providing a new approach to NPLs in the US context.

This special issue of the Eurasian Economic Review delves into the critical relationships between macro-financial policy frameworks and environmental sustainability, emphasizing the urgent challenges posed by climate change, biodiversity loss, and environmental degradation. These environmental crises pose significant threats to global economic and financial stability, underscoring the necessity of integrating environmental considerations into macro-financial policies to foster sustainability and resilience in economic policymaking. Through a collection of research papers, this issue explores innovative strategies for developing comprehensive policy frameworks that harmonize monetary, financial, and fiscal policies with environmental objectives. It emphasizes the need for advanced methods to assess and manage the financial risks of climate change and environmental degradation. Underscoring the need for a multidisciplinary approach, the research advocates for the collaboration of economists, environmental scientists, policymakers, and stakeholders to develop effective macro-financial policies. These policies aim to mitigate environmental risks, enhance environmental sustainability, and preserve biodiversity. The issue calls for further research to refine models that accurately predict the macro-financial impacts of environmental risks and assess the effectiveness of policy measures, paving the way for a sustainable future in the face of escalating environmental challenges.

The increasingly interdependence between non-banking financial institution (NBFIs) and the banking sector conditions the provision of liquidity in the financial markets. This paper evaluates how the market stress associated to the bankruptcy of one of the most interconnected NBFIs in an emerging market economy affected the availability of unsecured interbank funding. We show that the market stress conducted to a reallocation of deposits from money market mutual funds (MMMF) within the banking sector that affected the liquidity provision in the unsecured interbank market. Banks with ex-ante high concentration of deposits from the MMMF sector significantly increased loan spreads and reduced the supply of unsecured funds in the interbank market. Lending relationships and central bank liquidity contributed to partially alleviate the liquidity shock. Overall, we identify that the concentration of uninsured deposits from MMMFs increases the transmission of non-banking liquidity shocks to the banking sector.

Objective: The study aims to investigate the impact of bank credit on financial stability in the Iraqi economy and to reveal trends in bank credit in the Iraqi economy.   Method: We use the Vector Error Correction Model (VECM) and the Granger causality to assess the role of bank credit in strengthening financial stability in the Iraqi economy for the period 2006 to 2021.   Result: We provide evidence on the presence of a long-term relationship between bank supply and all indicators of financial stability. In the short term, a positive association is documented between bank credit and capital adequacy ratio.   Conclusion: Several conclusions could be drawn from our analysis of the evolution of bank credit and financial stability indicators, as well as from our empirical investigation of the relationship between them. The bank credit has been steadily increasing from 2006 to 2021. The capital adequacy ratio (CAR) was very high over the period 2006-2021, exceeding the standard ratio set by the Central Bank of Iraq, which is 12%. This reflects the soundness of the banking system in Iraq.  However, the return on equity declined from 27.1% in 2010 to 5.15% at the end of the study period in 2021. Using the VECM model and Granger causality, we provide evidence that bank credit affects financial stability through multiple channels. Thus, the Iraqi central bank should use the tool of credit supply to enhance financial stability.

Both the redistribution of resources and the efficient provision of public goods and services are undoubtedly two of the main functions of the public sector in today’s market economies. The success of the policies developed to perform these functions requires both the availability of sufficient financial resources and the best possible use of funds allocated. In this sense, the efficiency of public spending is an essential element in assessing the quality of public finances. This is particularly relevant for regional governments, as the resources that must finance their competencies do not depend exclusively on their own taxes, but also come from horizontal and vertical transfers. After setting out the fundamentals of this issue, in this paper we use the Spanish Autonomous Communities as an illustrative case study. The results obtained show that ignoring the fact that the levels of harnessing of each euro allocated may be different for each policy, period and autonomous community not only prevents the full use of the resources taken from society, but also violates the principle of horizontal equity in the financing of public services, based on the territory in which citizens reside, pay their taxes and receive their public spending benefits., Tanto la redistribución de recursos como la provisión eficiente de bienes y servicios públicos constituyen sin duda dos de las principales funciones del sector público en las economías de mercado actuales. El éxito de las políticas desarrolladas para realizar estas funciones requiere tanto disponer de recursos financieros suficientes como hacer el mejor uso posible de los fondos asignados. En este sentido, la eficiencia del gasto público constituye un elemento esencial a la hora de evaluar la calidad de las finanzas públicas. Esto es especialmente relevante en el ámbito de los gobiernos regionales, en la medida que los recursos que deben financiar sus competencias no dependen exclusivamente de sus propios impuestos, sino que proceden además de las transferencias horizontales y verticales de los sistemas de nivelación fiscal. Después de exponer los fundamentos de esta cuestión, en este trabajo usamos como caso de estudio ilustrativo el de las comunidades autónomas españolas. Los resultados obtenidos muestran que obviar que los niveles de aprovechamiento de cada euro asignado pueden ser distintos para cada política, periodo y comunidad autónoma no sólo impide un aprovechamiento pleno de los recursos detraídos de la sociedad, sino que vulnera el principio de equidad horizontal en cuanto a la financiación de los servicios públicos, por razón del territorio en el que los ciudadanos residen, pagan sus impuestos y reciben sus prestaciones de gasto público.

In the ever-evolving landscape of banking and insurance, the accurate assessment of credit risk stands as a cornerstone for financial stability and profitability. With the advent of machine learning techniques, the methodologies for credit risk assessment have witnessed a transformative shift, promising enhanced predictive capabilities and risk segmentation. This paper delves into the comprehensive investigation of machine learning approaches tailored for credit risk assessment within the banking and insurance sectors, with a focal point on predictive modeling for loan default prediction, credit scoring, and risk segmentation. The journey begins with an exploration of the fundamental concepts underlying credit risk assessment, shedding light on its pivotal role in ensuring prudent lending practices and mitigating potential financial losses. Following this, a detailed overview of traditional credit risk assessment methods is presented, highlighting their limitations in coping with the complexities of modern financial landscapes characterized by vast datasets and dynamic risk profiles. The subsequent sections delve into the realm of machine learning, elucidating its principles and methodologies pertinent to credit risk assessment. Various machine learning algorithms, including but not limited to logistic regression, decision trees, random forests, support vector machines, and neural networks, are dissected in terms of their applicability and efficacy in predicting loan defaults, generating credit scores, and delineating risk segments. Furthermore, the paper explores the challenges and considerations inherent in the application of machine learning techniques to credit risk assessment, encompassing issues such as data quality, model interpretability, regulatory compliance, and ethical considerations. Strategies for data preprocessing, feature selection, model evaluation, and validation are elucidated to ensure robust and reliable credit risk models. Drawing upon empiric

Banking Union was a major policy response to the financial crisis that began in 2007 and the subsequent Eurozone crisis. Moral hazard has frequently been presented as a major cause of these crises. Therefore, Banking Union can be understood as a response to moral hazard in relation to banks and sovereigns. Yet, moral hazard was an acknowledged and supposedly managed problem prior to these events. Paradoxically, moral hazard has been used to justify contradictory policy options to safeguard European financial system stability, such as decentralized institutional arrangements for banking supervision but also a centralized system coordinated by the European Central Bank (ECB). To address this paradox, this paper investigates moral hazard as a political concept. Based on a comparison of how central bankers from the Bundesbank and the ECB understand and use the moral hazard concept, this paper argues that moral hazard is closer to the realm of politics than expertise.

Banking Union was a major policy response to the financial crisis that began in 2007 and the subsequent Eurozone crisis. Moral hazard has frequently been presented as a major cause of these crises. Therefore, Banking Union can be understood as a response to moral hazard in relation to banks and sovereigns. Yet, moral hazard was an acknowledged and supposedly managed problem prior to these events. Paradoxically, moral hazard has been used to justify contradictory policy options to safeguard European financial system stability, such as decentralized institutional arrangements for banking supervision but also a centralized system coordinated by the European Central Bank (ECB). To address this paradox, this paper investigates moral hazard as a political concept. Based on a comparison of how central bankers from the Bundesbank and the ECB understand and use the moral hazard concept, this paper argues that moral hazard is closer to the realm of politics than expertise.

Bostadspriserna har stigit markant under de senaste åren och till följd av detta har hushållen varit tvungna att ta på sig stora skulder. Svenska hushåll tar därför ständigt större lån och fler bostadslåntagare uppvisar högre skuldkvot och belåningsgrad än tidigare. Stigande inflation och ökade räntor resulterar i minskade ekonomiska marginaler för låntagare samt sociala konsekvenser. Hushållen har även blivit mer känsliga för risker, såsom förändringar i räntenivåer. Denna studie har till syfte att undersöka hur hög belåningen i samhället är idag och vilka konsekvenser som kan ses på kort och lång sikt. Privata bostadslån i Sverige studeras med fokus kring problematiken med hög skuldsättning. Detta görs genom banktjänstemäns syn på hushållens skuldkvot med hjälp av semistrukturerade intervjuer. Studien innefattar nio intervjuer med åtta svenska banker och en bankförening. Studiens resultat är relevant för svenska beslutsfattare, banker och hushåll, eftersom det ger insikt i vad som ökar riskexponeringen för de som tar bostadslån. Resultaten visar att Sverige ligger på rekordhöga nivåer vad gäller skuldsättning och att detta resulterar i flera konsekvenser. Hög skuldkvot leder till hög räntekänslighet och sårbarhet vilket kan strama åt hushållens ekonomi vid förändringar i penningpolitiken. Detta leder i sin tur till minskat konsumtionsutrymme, försämrad återbetalningsförmåga, minskad ekonomisk tillväxt, finansiell instabilitet, fler konkurser och högre arbetslöshet., Housing prices have risen significantly in recent years and as a result, households have had to take on large debts. Swedish households are therefore constantly taking out larger loans, and more mortgage borrowers show a higher debt-to-income ratio and loan-to-value ratio than before. Rising inflation and increased interest rates result in reduced financial margins for borrowers and social consequences. Households have also become more sensitive to risks, such as changes in interest rates. The purpose of this study is to investigate how high the level of debt in society is today and what consequences can be foreseen in the short and long term. Private housing loans in Sweden are studied with focus on problems related to high indebtedness. This is done through the perspective of bank employees on households' debt-to-income ratio, using semi-structured interviews. The study includes nine interviews with eight Swedish banks and one banking association. The results of this study are relevant for Swedish decision-makers, banks, and households, as they provide insight into what increases risk exposure for those taking out home loans. The results show that Sweden is at record high levels in terms of indebtedness, and this implies several consequences. A high debt-to-income ratio leads to high interest rate sensitivity and vulnerability, which can tighten the finances of households in case of changes in monetary policy. This, in turn, leads to a reduced space for consumption, worsened repayment ability, reduced economic growth, financial instability, more bankruptcies, and higher unemployment.

The banking sector is experiencing an increasing interest in evaluating environmental performance, social responsibility, and corporate governance (ESG), since the internationalcontext aroused discussions on advantages of incorporating ESG-related policies. Therefore,significant relationships between ESG engagement and financial performance and stabilityare expected. This study aims to analyse the impact of ESG engagement on financial stabilityin the banking sector including the period of economic distress. A sample size of 72 listedEuropean banks is studied during the period 2017-2022, using regression analysis. Z-score,Non-performing loan ratio and Tobin’s Q are proxies used to measure banks’ financialstability. Combined ESG score and individual Social, Environmental, and Governance pillarsfrom Refinitiv Eikon database are the target variables. Contrary to expectations, the findingsreveal that ESG engagement does not have a significant positive impact on financial stabilitywithin the banking sector. However, interestingly, among the three ESG pillars the social oneseems to decrease financial stability of banks in some estimations. It is also notable that theregression coefficients for target variables are quite low, especially in comparison withfinancial performance variables ROA and ROE, which indicates that ESG engagement maynot be the most influential factor in banks’ financial stability.

Bostadspriserna har stigit markant under de senaste åren och till följd av detta har hushållen varit tvungna att ta på sig stora skulder. Svenska hushåll tar därför ständigt större lån och fler bostadslåntagare uppvisar högre skuldkvot och belåningsgrad än tidigare. Stigande inflation och ökade räntor resulterar i minskade ekonomiska marginaler för låntagare samt sociala konsekvenser. Hushållen har även blivit mer känsliga för risker, såsom förändringar i räntenivåer. Denna studie har till syfte att undersöka hur hög belåningen i samhället är idag och vilka konsekvenser som kan ses på kort och lång sikt. Privata bostadslån i Sverige studeras med fokus kring problematiken med hög skuldsättning. Detta görs genom banktjänstemäns syn på hushållens skuldkvot med hjälp av semistrukturerade intervjuer. Studien innefattar nio intervjuer med åtta svenska banker och en bankförening. Studiens resultat är relevant för svenska beslutsfattare, banker och hushåll, eftersom det ger insikt i vad som ökar riskexponeringen för de som tar bostadslån. Resultaten visar att Sverige ligger på rekordhöga nivåer vad gäller skuldsättning och att detta resulterar i flera konsekvenser. Hög skuldkvot leder till hög räntekänslighet och sårbarhet vilket kan strama åt hushållens ekonomi vid förändringar i penningpolitiken. Detta leder i sin tur till minskat konsumtionsutrymme, försämrad återbetalningsförmåga, minskad ekonomisk tillväxt, finansiell instabilitet, fler konkurser och högre arbetslöshet., Housing prices have risen significantly in recent years and as a result, households have had to take on large debts. Swedish households are therefore constantly taking out larger loans, and more mortgage borrowers show a higher debt-to-income ratio and loan-to-value ratio than before. Rising inflation and increased interest rates result in reduced financial margins for borrowers and social consequences. Households have also become more sensitive to risks, such as changes in interest rates. The purpose of this study is to investigate how high the level of debt in society is today and what consequences can be foreseen in the short and long term. Private housing loans in Sweden are studied with focus on problems related to high indebtedness. This is done through the perspective of bank employees on households' debt-to-income ratio, using semi-structured interviews. The study includes nine interviews with eight Swedish banks and one banking association. The results of this study are relevant for Swedish decision-makers, banks, and households, as they provide insight into what increases risk exposure for those taking out home loans. The results show that Sweden is at record high levels in terms of indebtedness, and this implies several consequences. A high debt-to-income ratio leads to high interest rate sensitivity and vulnerability, which can tighten the finances of households in case of changes in monetary policy. This, in turn, leads to a reduced space for consumption, worsened repayment ability, reduced economic growth, financial instability, more bankruptcies, and higher unemployment.

Bu çalışmanın amacı, küresel ekonomi açısından büyük önem taşıyan G-20 ülkeleri için finansal baskı endeksinin oluşturmak ve söz konusu piyasalar arasındaki finansal baskı aktarımını incelemektir. Bu kapsamda bu çalışma G-20 ekonomilerinin dış finansal baskı şoklarına karşı kırılganlığını ve istikrar yapısını ortaya çıkarmayı amaçlamaktadır. Her bir ülke için finansal baskı endeksi beş alt piyasa göstergesi (para, tahvil, hisse senedi, döviz kuru ve bankacılık sektörü) dikkate alınarak hesaplanmıştır. Buna göre hesaplanan finansal baskı endekslerinin resesyon dönemlerini yakalamada yeterli olup olmadığı tarihsel perspektifte değerlendirilmiştir. Daha sonra, ülkeler arasındaki entegrasyonun varlığı dikkate alınarak, Diebold ve Yılmaz (2012) tarafından önerilen dinamik bağlantılılık analizi kullanılarak ülkeler arasındaki finansal baskı aktarım ilişkisi 2006-2020 dönemi için incelenmiştir. Buna göre, söz konusu ülkelerde finansal baskının kriz dönemlerinde arttığı belirlenmiştir. Ampirik sonuçlar finansal kriz dönemlerinde finansal stres aktaran ve alan ülkeleri ortaya koymaktadır. Net yönlü yayılma analizi sonuçlarına göre, finansal baskı alıcısı olarak söz konusu ülkeler arasında Endonezya ilk sırada yer alırken, Japonya son sırada yer almaktadır. Öte yandan, finansal stres vericisi olarak söz konusu ülkeler arasında İngiltere ilk sırada yer alırken, Arjantin son sırada yer alıyor. Son olarak, net yayılma analizi sonuçları, finansal baskıyı diğer ülkelere ileten en önemli ülkeler olarak İngiltere, ABD ve Fransa'yı öne çıkarırken, Arjantin, Türkiye ve Endonezya’yı en önemli finansal stres alıcısı olan ülkeler olarak belirtmektedir., The study aims to calculate a financial stress index for the G-20 countries, which are of great importance for the global economy, and to examine the transmission of financial stress between the countries in question. In this context, the study aims to reveal the vulnerability and stability of G-20 economies against external financial stress shocks. The financial stress index for each country is calculated by considering five sub-market indicators (monetary, bond, stock exchange, foreign exchange, and banking sector). Accordingly, whether the financial stress indices are sufficient to track recessions has been evaluated from a historical perspective. Then, by considering the integration among countries, the financial stress transmission relationship between the countries is examined between 2006 and 2020 by using the dynamic connectedness analysis suggested by Diebold and Yilmaz (2012). Accordingly, it is determined that the financial stress in these countries increased during the crisis periods. Empirical results show the financial stress transmitter and receiver countries during financial crisis periods. According to the net directional spillover analysis results, as financial stress receiver, while Indonesia ranks first among the countries in question, Japan ranks last. On the other hand, as financial stress transmitter, while the UK ranks first among the countries in question, Argentina ranks last. Finally, while the net spillover analysis results highlight the UK, the US, and France as the most important countries that transmit financial stress to the rest of the countries, Argentina, Turkey and Indonesia are determined the countries that most important financial stress receiver.

Nº 109 - MONOGRÁFICO: La financiación complementaria y la respuesta de la economía social: la situación del “des-crédito” bajo la crisis financiera., La reforma propuesta por la Comisión Europea en julio de 2010, modificando el procedimiento para fijar las aportaciones que deben realizar las entidades de crédito a los sistemas de garantía de depósitos en función de su nivel de riesgo, supondrá cambios sustanciales en las cuotas que pagan actualmente. Este trabajo analiza el perfil de riesgo de las cooperativas españolas durante el período 2007-2010 y cuantifica su efecto sobre las contribuciones al Fondo de Garantía de Depósitos de Entidades de Crédito (FGDEC) aplicando la metodología desarrollada por la Comisión. El estudio concluye con importantes evidencias sobre la evolución del perfil de riesgo del sector durante un periodo de recesión económica y el impacto de esta reforma, valorado a través del número de entidades que aumentarían su aportación y las variaciones en el coste del seguro respecto al sistema vigente., The reform proposed by the European Commission in July 2010, modifying the procedure for determining the contributions which the banks must make to the deposit guarantee systems according to their level of risk will imply substantial changes in the fees currently paid. This paper analyzes the risk profile of Spanish cooperatives during 2007-2010 and quantifies their effect on contributions to the Deposit Guarantee Fund for Credit Institutions (FGDEC) using the methodology proposed by the Commission. The study concludes with important evidence about the evolution of the risk profile of the sector in a period of economic recession and the impact of this reform, measured by means of the number of entities that would increase their input and variations in the cost of insurance in relation to the current system., Escuela de Estudios Cooperativos, Fac. de Ciencias Económicas y Empresariales, TRUE, pub

Parts of this paper build on Stockhammer (2008). The author benefited greatly from discussions with and comments by Özlem Onaran and Joachim Becker. An earlier version of the paper has been presented at the Global Labor University Conference, Feb. 2009, Mumbai, and benefited from the discussion there as well as from comments by Klara Zwickl. The usual disclaimers apply., The paper discusses the interactions of changes in income distribution and the accumulation dynamics in the post-Fordist accumulation regime in OECD countries, which is characterized by deregulated financial markets. The neoliberal mode of regulation came with a decisive shift in power relations at the expense of labor, which is clearly reflected in the fall of wage shares across OECD economies. The notion of a “finance-dominated” accumulation regime is proposed to highlight that financial developments crucially shape the pattern and the pace of accumulation. Financial globalization has relaxed balance of payment constraints and thereby allowed the build up of big international imbalances. The combination of real wage moderation and financial liberalization has led to different strategies (or at least outcomes) in different countries. While some countries (like the USA) exhibit a credit-fuelled consumption-driven growth model that comes with large current account deficits, others (like Germany and Japan) show an export-driven growth model with modest consumption growth and large current account surpluses. Overall the financedominated accumulation regime is characterized by a mediocre growth performance and by a high degree of fragility., Instituto Complutense de Estudios Internacionales, TRUE, pub

Este documento presenta el marco de referencia del Banco de España para el análisis del impacto de la materialización de riesgos macroeconómicos y financieros sobre la actividad real y la estabilidad financiera. Este marco incluye un amplio conjunto de modelos y métodos, tanto empíricos como teóricos, con el fin de capturar la heterogeneidad de las diversas fuentes de riesgo y sus distintas características. En particular, se describe su aplicación para medir el impacto de riesgos, derivados tanto de fuentes endógenas (como la acumulación de desequilibrios macroeconómicos y financieros a lo largo del ciclo) como de fuentes exógenas. Respecto a estas últimas, se presenta la aplicación de estos modelos en el contexto de la irrupción de la pandemia de COVID-19 y de las medidas de política económica adoptadas en respuesta la crisis resultante, tanto en los ámbitos fiscal y monetario como en el prudencial. Igualmente, se presenta su aplicación en el contexto de la invasión rusa de Ucrania y de la intensificación de las tensiones inflacionarias y de incertidumbre económica., This paper presents the Banco de España’s reference framework for the analysis of macroeconomic and financial risk, and the impact of the materialisation of this risk on financial stability and the real economy. The framework encompasses a broad set of empirical and theoretical models and methods, with the aim of capturing heterogeneity in the characteristics of different sources of risk. In particular, the paper describes how these models are used to identify the impact of endogenous sources of risk, such as the build-up of macro-financial imbalances over the cycle, and of exogenous shocks. Regarding the latter, the paper presents an application of the models to the main exogenous events that have occurred recently: the COVID-19 pandemic, including the fiscal, monetary and prudential measures adopted as a response to this shock; the Russian invasion of Ukraine; and the subsequent high inflation and economic uncertainty environment.

Purpose: This research aims to determine the correlation between financial integration and financial stability and whether increasing financial integration leads to increased financial stability. Theoretical framework: The study investigates the effect of growing financial integrity on financial stability and the causal association between the two variables. Design/methodology/approach: The study uses an Autoregressive-Distributed Lag (ARDL) regression model with the help of least squares (OLS) regression to evaluate the relationship between financial integration and stability. This research work further employed a Panel Smooth Transition Model (PSTR) to determine the nonlinearity among two factors and investigated the entrance stage of financial boosting beyond which Total Factor Productivity (TFP) extension is possibly dampened. Findings: The results came forward with a positive impact of financial integrity on financial stability across many countries. Findings indicated that economic and financial integration is the primary channel to mediate the effect of monetary extremity in economies. Fiscal policy should seek measures to reduce the risk of crisis transfer and increase the benefits of financial integration to achieve financial stability. Research, Practical & Social implications: The study recommends considering financial integration for economic development and avoiding the occurrence of risk by considering a fiscal policy. Originality/value: The results highlight the sectors where financial integration is required. Moreover, establishment of subsidiary international bank in the resident economy with the local financial centre’s loans has been emphasized.

Purpose: The purpose of this study is to examine the association of entrepreneurship ecosystem with financial inclusion, and to explore the potential ways in which the ecosystem can be leveraged to improve access to financial services for marginalized communities. Theoretical framework: The study utilizes the ecosystem approach to entrepreneurship, which emphasizes the interdependence and interplay of various stakeholders in the entrepreneurial process. The study also draws on the concept of financial inclusion, which refers to the provision of affordable and accessible financial services to all individuals and businesses. Design/methodology/approach: The study employs a mixed-methods approach, including a literature review, case studies, and surveys, to collect data from a variety of stakeholders in the entrepreneurship ecosystem. Findings: The findings suggest that the entrepreneurship ecosystem plays a critical role in promoting financial inclusion. The ecosystem can be leveraged to increase access to financial services for marginalized communities through the development of innovative financial products and services, the creation of mentorship and networking opportunities, and the promotion of policies that encourage financial inclusion. Research, practical and social implications: The study contributes to the understanding of the relationship between entrepreneurship and financial inclusion, and has implications for policymakers and practitioners seeking to promote financial inclusion through entrepreneurship. The findings can also inform the design and implementation of programs and policies aimed at promoting entrepreneurship and financial inclusion in marginalized communities. Originality/value: The study is among the first to examine the association of entrepreneurship ecosystem with financial inclusion and to explore the potential ways in which the ecosystem can be leveraged to improve access to financial services for marginalized communities.

Purpose: The purpose of this research is studying the role of financial inclusion on financial stability in the Islamic banks, Highlighting the role of Islamic law in promoting financial and banking inclusion. Theoretical framework: Introduce financial inclusion and definition of financial inclusion, statement of financial stability, and the role of financial inclusion in the stability of Islamic banks, in which the concept of financial inclusion and its dimensions was reviewed. Methodology: The study was based on a qualitative research method, as it collected information from books, reports, journals, newspapers, and websites. The study adopted the descriptive analytical approach to study and analyze the various aspects of financial inclusion, its dimensions in Islamic banks, and its relationship in financial stability. Findings: The relationship between financial stability and financial inclusion in Islamic banks is a direct relationship and financial stability cannot be reached without achieving financial inclusion and vice versa. The financial sectors must develop two sectors in parallel to achieve the desired economic development. Research, Practical & Social implications: Central banks, Islamic banks (clients /staff), financial institutions, and small clients are the main beneficiaries of these ideas. Originality/value: This study contributes to determining the role of financial inclusion in financial stability, using Islamic banks, which is to determine the effect of applying financial inclusion on the financial investment of Islamic banks. The research is based on a lack of studies on research variables.

Artículo de revista, Energy derivatives markets were thrown into turmoil following Russia’s invasion of Ukraine, as the prices of natural gas and power soared amid high volatility and a significant deterioration in market liquidity. Prices surged in March 2022, before declining in Spring and then rebounding to reach historical peaks at end-August 2022. The sharp price increases triggered large margin calls on derivatives positions, resulting in liquidity stress for some firms using derivatives as hedges against price declines, energy utilities in particular. The liquidity demands were so high that some EU countries introduced public support mechanisms in the form of loans and public guarantees, and a few energy firms were bailed out. Therefore, it is crucial to understand the structure and functioning of energy derivatives markets. This article provides an overview of EU energy derivatives markets and assesses the risks for financial stability. Unlike other financial markets, non-financial corporates play a key role in energy markets by trading on exchanges and over the counter. The market is characterised by a high degree of concentration in clearing and trading activities, as evidenced by network analysis, and some energy firms hold relatively large positions in the market. In this context, liquidity and concentration risks are among the main vulnerabilities identified, along with data fragmentation and data gaps. The recent migration of some of this activity from exchange-traded to over-the-counter derivatives markets raises concerns over limited transparency and more bespoke margin and collateral requirements.

Artículo de revista, Over financial stability concerns, supervisors and regulators have turned their attention to non-bank financial institutions and activities because of the importance they have taken on in recent years. Discussions have started globally over whether macroprudential policy should be conducted in the investment fund sector. The most important risks that these institutions may pose to financial stability mainly arise from the liquidity mismatch between their portfolio assets and their redemption terms, or because they are highly leveraged. There are many different macroprudential tools available in this area which vary greatly across jurisdictions. Important international initiatives are currently under way, driven by the International Organization of Securities Commissions and the Financial Stability Board, aimed at promoting and standardising the available toolkit and how it is used. This article describes the existing tools in Spain, detailing their aim and possible actions by the regulator. It also compares the situation in Spain with other European jurisdictions, revealing that data and risk management tools are widely available in Spain.

Artículo de revista, The growth of crypto-assets in recent years, their potential use as a means of exchange or saving, and their possible risks to financial stability, arising, among other things, from their interconnections with the banking sector, have drawn the attention of national and international authorities. In terms of the regulation of these assets, of note at the European level is the European Union’s proposal for a regulation on markets in crypto-assets, which establishes a regulatory framework for all those crypto-assets that currently lie outside the scope of the European Union’s existing regulation on financial services. As regards their treatment in the banking sector, in December 2022 the Basel Committee on Banking Supervision published the global standard on the prudential treatment of banks’exposures to crypto-assets. In this article we review the main characteristics of these two regulatory developments, which are essential for the future of the crypto-asset ecosystem’s relationship with the traditional financial world.

Artículo de revista, This article examines the evolution of the mandate and tasks of the European Central Bank (ECB) in the field of financial stability since its establishment in 1998. Over this period, the significance of the ECB’s financial stability function has increased markedly, in parallel with the growth of macroprudential policy and driven by the institutional reforms stemming from the creation of the European Systemic Risk Board in 2010 and the start of the Single Supervisory Mechanism (SSM) in 2014. To carry out its tasks, the ECB has a Financial Stability Committee, which is made up of representatives of the central banks and banking supervisory authorities of the SSM area – including the Banco de España – , that acts as an internal forum for the ECB’s governing bodies to prepare issues relating to the analysis of risks and vulnerabilities and national macroprudential policies in the banking union. Lastly, an overview is provided of the main ECB publications and public interventions in this field.

The banking sector is experiencing an increasing interest in evaluating environmental performance, social responsibility, and corporate governance (ESG), since the internationalcontext aroused discussions on advantages of incorporating ESG-related policies. Therefore,significant relationships between ESG engagement and financial performance and stabilityare expected. This study aims to analyse the impact of ESG engagement on financial stabilityin the banking sector including the period of economic distress. A sample size of 72 listedEuropean banks is studied during the period 2017-2022, using regression analysis. Z-score,Non-performing loan ratio and Tobin’s Q are proxies used to measure banks’ financialstability. Combined ESG score and individual Social, Environmental, and Governance pillarsfrom Refinitiv Eikon database are the target variables. Contrary to expectations, the findingsreveal that ESG engagement does not have a significant positive impact on financial stabilitywithin the banking sector. However, interestingly, among the three ESG pillars the social oneseems to decrease financial stability of banks in some estimations. It is also notable that theregression coefficients for target variables are quite low, especially in comparison withfinancial performance variables ROA and ROE, which indicates that ESG engagement maynot be the most influential factor in banks’ financial stability.

The study aims to calculate a financial stress index for the G-20 countries, which are of great importance for the global economy, and to examine the transmission of financial stress between the countries in question. In this context, the study aims to reveal the vulnerability and stability of G-20 economies against external financial stress shocks. The financial stress index for each country is calculated by considering five sub-market indicators (monetary, bond, stock exchange, foreign exchange, and banking sector). Accordingly, whether the financial stress indices are sufficient to track recessions has been evaluated from a historical perspective. Then, by considering the integration among countries, the financial stress transmission relationship between the countries is examined between 2006 and 2020 by using the dynamic connectedness analysis suggested by Diebold and Yilmaz (2012). Accordingly, it is determined that the financial stress in these countries increased during the crisis periods. Empirical results show the financial stress transmitter and receiver countries during financial crisis periods. According to the net directional spillover analysis results, as financial stress receiver, while Indonesia ranks first among the countries in question, Japan ranks last. On the other hand, as financial stress transmitter, while the UK ranks first among the countries in question, Argentina ranks last. Finally, while the net spillover analysis results highlight the UK, the US, and France as the most important countries that transmit financial stress to the rest of the countries, Argentina, Turkey and Indonesia are determined the countries that most important financial stress receiver., Bu çalışmanın amacı, küresel ekonomi açısından büyük önem taşıyan G-20 ülkeleri için finansal baskı endeksinin oluşturmak ve söz konusu piyasalar arasındaki finansal baskı aktarımını incelemektir. Bu kapsamda bu çalışma G-20 ekonomilerinin dış finansal baskı şoklarına karşı kırılganlığını ve istikrar yapısını ortaya çıkarmayı amaçlamaktadır. Her bir ülke için finansal baskı endeksi beş alt piyasa göstergesi (para, tahvil, hisse senedi, döviz kuru ve bankacılık sektörü) dikkate alınarak hesaplanmıştır. Buna göre hesaplanan finansal baskı endekslerinin resesyon dönemlerini yakalamada yeterli olup olmadığı tarihsel perspektifte değerlendirilmiştir. Daha sonra, ülkeler arasındaki entegrasyonun varlığı dikkate alınarak, Diebold ve Yılmaz (2012) tarafından önerilen dinamik bağlantılılık analizi kullanılarak ülkeler arasındaki finansal baskı aktarım ilişkisi 2006-2020 dönemi için incelenmiştir. Buna göre, söz konusu ülkelerde finansal baskının kriz dönemlerinde arttığı belirlenmiştir. Ampirik sonuçlar finansal kriz dönemlerinde finansal stres aktaran ve alan ülkeleri ortaya koymaktadır. Net yönlü yayılma analizi sonuçlarına göre, finansal baskı alıcısı olarak söz konusu ülkeler arasında Endonezya ilk sırada yer alırken, Japonya son sırada yer almaktadır. Öte yandan, finansal stres vericisi olarak söz konusu ülkeler arasında İngiltere ilk sırada yer alırken, Arjantin son sırada yer alıyor. Son olarak, net yayılma analizi sonuçları, finansal baskıyı diğer ülkelere ileten en önemli ülkeler olarak İngiltere, ABD ve Fransa'yı öne çıkarırken, Arjantin, Türkiye ve Endonezya’yı en önemli finansal stres alıcısı olan ülkeler olarak belirtmektedir.

This article proposes a methodology for modifying bankruptcymodels. The authors focused on the role of partial predictors inpredicting companys bankruptcy. According to the authors, it is necessary to analyse the anomalies that occur in companies that are losing financial stability. It has been hypothesized that some anomalies in the form of extreme values may deviate the overall final value of the model to such an extent that they lead to an erroneous evaluation of the company by the bankruptcy model. As a result, companies in bankruptcy may be incorrectly classified as 'financially stable' or, conversely, financially sound companies with certain extreme values could be mistaken for companies in bankruptcy. To verify the hypothesis, the authors analysed the probability distribution of partial predictors of the bankruptcy Model 1 on a test and verification sample of more than 1,100 companies. Limits were set to eliminate extreme values and, as a result, the accuracy of the model has been increased. The introduction of limits has increased the accuracy of the model, especially in bankruptcy prediction. For bankruptcies, the accuracy increased from 85.82% to 88.65% for the test sample and from 84.00% to 88.00% for the verification sample., Tento článek navrhuje metodologii pro úpravu bankrotních modelů. Autoři se zaměřili na roli dílčích prediktorů předpovídajících bankrot firem. Podle autorů je nutné analyzovat anomálie, které se vyskytují ve firmách, které ztrácejí finanční stabilitu. Byla vyslovena hypotéza, že některé anomálie v podobě extrémních hodnot mohou vychýlit celkovou výslednou hodnotu modelu natolik, že vedou k chybnému ohodnocení podniku bankrotním modelem. V důsledku toho mohou být společnosti v úpadku nesprávně klasifikovány jako „finančně stabilní“ nebo naopak finančně zdravé společnosti s určitými extrémními hodnotami by mohly být zaměněny za společnosti v úpadku. Pro ověření hypotézy autoři analyzovali rozdělení pravděpodobnosti dílčích prediktorů bankrotu Model 1 na testovacím a ověřovacím vzorku více než 1100 společností. Byly nastaveny limity pro eliminaci extrémních hodnot a v důsledku toho byla zvýšena přesnost modelu. Zavedení limitů zvýšilo přesnost modelu, zejména v predikci bankrotu. U bankrotů se přesnost zvýšila z 85,82 % na 88,65 % u zkušebního vzorku a z 84,00 % na 88,00 % u ověřovacího vzorku.

Students’ home lives can significantly impact their educational progress and success. Aspects such as the amount of parental involvement, grandparents’ support, family structures, number of siblings, financial stability, socioeconomic status, abusive family situations, and spiritual background can all have a major influence on how a student behaves and performs at school. This thesis provides a description of how these various subjects impact students in their education, and it provides some practical steps that teachers can take based on this information. The thesis is supported by information from scholars, who support the idea that parental involvement, which is directly tied to a student’s home life, has a large and important impact on a student’s academic development.

Financial markets have been shaken by the surge of a banking crisis in early 2023. The failure of Silicon Valley Bank has raised concerns about the health of various financial institutions in a period of rapid monetary contraction and high interest rates. I discuss the stress levels of sixty US regional banks, by proposing a new “bank stress indicator”, based on an event study framework. The indicator suggests six highly stressed banks: First Republic Bank, Western Alliance Bancorporation, KeyCorp, Comerica Incorporated, Zions Bancorporation and PacWest Bancorp. Although most of these banks have been highly profitable and have built solid balance sheet positions over the past years, they have faced large shares of uninsured deposits, which have put them at risk. The new Bank Term Funding Program launched by the Fed is designed to help in this matter, lowering the risk of new failures.

This thesis studies the causes of rising household and particularly mortgage debt in Sweden between 1995 and 2020. It aims to contribute to the understanding of institutional factors behind increasing debt, such as policy regulating lending. It undertakes a qualitative analysis of previous literature on household debt, and the Financial Accelerator framework. The Financial Accelerator (Bernanke & Gertler, 1989) proposes a procyclical feedback loop between asset values, income, and debt levels. Favourable lending conditions, low interest rates, and an inelastic housing supply are found to be key factors behind the increase in mortgage debt. These factors constitute conditions necessary for a Financial Accelerator to operate, suggesting a high probability that a Financial Accelerator effect is in place.

Since the nineties, crises have punctuated financial markets, shattering the conventional wisdom about how these markets work and how to regulate them, and forcing a deep rethinking of the supervisory framework that, however, did not change much of the banks’ behavior and incentives. In particular, banking regulation did not face the nexus profitability-riskiness. Based on Minsky’s financial instability hypothesis, we discuss the literature on banks’ profitability and its relation to the originate-to-distribute model. We also propose a different strategy for banking regulation, based on a profitability cap that prevents financial innovation from overwhelming supervision. Finally, we discuss the data for the US case, confirming the importance of profitability as a signal of incoming troubles and the possibility of using the profitability cap to greatly simplify banking regulation.

Evento: International Symposium on Central Bank Independence. Organizado por: Sveriges Riksbank, There needs to be an appropriate balance between globally-agreed decisions and national measures. This is the approach that has always been pursued by the Basel Committee. It comprises: (i) a common and consistent global baseline of standards and principles to provide a level-playing field; (ii) the ability of member jurisdictions to apply additional and more prudent measures to help mitigate specific areas of risks and vulnerabilities related to their banking systems; and (iii) the possibility for them to implement the proportionality principle in their domestic regulatory and supervisory frameworks, in such a way that neither financial stability nor the safety of financial institutions is undermined.

In the ever-evolving landscape of banking and insurance, the accurate assessment of credit risk stands as a cornerstone for financial stability and profitability. With the advent of machine learning techniques, the methodologies for credit risk assessment have witnessed a transformative shift, promising enhanced predictive capabilities and risk segmentation. This paper delves into the comprehensive investigation of machine learning approaches tailored for credit risk assessment within the banking and insurance sectors, with a focal point on predictive modeling for loan default prediction, credit scoring, and risk segmentation. The journey begins with an exploration of the fundamental concepts underlying credit risk assessment, shedding light on its pivotal role in ensuring prudent lending practices and mitigating potential financial losses. Following this, a detailed overview of traditional credit risk assessment methods is presented, highlighting their limitations in coping with the complexities of modern financial landscapes characterized by vast datasets and dynamic risk profiles. The subsequent sections delve into the realm of machine learning, elucidating its principles and methodologies pertinent to credit risk assessment. Various machine learning algorithms, including but not limited to logistic regression, decision trees, random forests, support vector machines, and neural networks, are dissected in terms of their applicability and efficacy in predicting loan defaults, generating credit scores, and delineating risk segments. Furthermore, the paper explores the challenges and considerations inherent in the application of machine learning techniques to credit risk assessment, encompassing issues such as data quality, model interpretability, regulatory compliance, and ethical considerations. Strategies for data preprocessing, feature selection, model evaluation, and validation are elucidated to ensure robust and reliable credit risk models. Drawing upon empiric

In the ever-evolving landscape of banking and insurance, the accurate assessment of credit risk stands as a cornerstone for financial stability and profitability. With the advent of machine learning techniques, the methodologies for credit risk assessment have witnessed a transformative shift, promising enhanced predictive capabilities and risk segmentation. This paper delves into the comprehensive investigation of machine learning approaches tailored for credit risk assessment within the banking and insurance sectors, with a focal point on predictive modeling for loan default prediction, credit scoring, and risk segmentation. The journey begins with an exploration of the fundamental concepts underlying credit risk assessment, shedding light on its pivotal role in ensuring prudent lending practices and mitigating potential financial losses. Following this, a detailed overview of traditional credit risk assessment methods is presented, highlighting their limitations in coping with the complexities of modern financial landscapes characterized by vast datasets and dynamic risk profiles. The subsequent sections delve into the realm of machine learning, elucidating its principles and methodologies pertinent to credit risk assessment. Various machine learning algorithms, including but not limited to logistic regression, decision trees, random forests, support vector machines, and neural networks, are dissected in terms of their applicability and efficacy in predicting loan defaults, generating credit scores, and delineating risk segments. Furthermore, the paper explores the challenges and considerations inherent in the application of machine learning techniques to credit risk assessment, encompassing issues such as data quality, model interpretability, regulatory compliance, and ethical considerations. Strategies for data preprocessing, feature selection, model evaluation, and validation are elucidated to ensure robust and reliable credit risk models. Drawing upon empiric

The aim of this study is to disentangle the effects of introducing an interest-bearing central bank digital currency (CBDC) for financial stability using a Diamond and Dybvig (1983) model in which (i) both CBDC and private bank deposits can be used in exchange and (ii) liquidity is created endogenously. Agents have direct access to a CBDC via deposits at the central bank. They use both sight deposits and CBDC deposits to buy goods and commercial banks borrow reserves to cover liquidity needs. The introduction of an interest-bearing CBDC has direct implications on the sight deposits rate and on the loan rate of banks. Besides, if the central bank aims at having a positive net worth and the absence of bank runs, a high supply of a CBDC is a necessary condition to achieve both objectives. If this is not provided, it will endanger financial stability.

Research suggests that multiple trade-offs and synergies characterise the relationship between financial inclusion and financial stability. For example, expanding access to financial services can lead to a more stable banking system but also excessive credit growth and decreased stability. The outcome is determined by policy and management and depends on institutional factors and other country characteristics. Recently, macroprudential policy (MaPP) has become the tool of choice for managing systemic risk. Other research has found that some MaPP tools lead to less uptake of formal financial services, while others are inherently exclusionary. This thesis argues that MaPP tools counteract financial inclusion goals in the short term. I propose a relationship in which commitments to inclusion increase the perceived costs of MaPP. Thus, risk build-up associated with tighter MaPP and financial inclusion would correlate negatively. This relationship entails that in the event of risks materialising, country financial sector ability to absorb shocks is lower as inclusion decreases. To study this, I analyse cross-country data on MaPP usage and financial inclusion, first to determine whether tool usage differs by inclusion quartile and second whether financial soundness indicators predict differing levels of macroprudential activity by quartile. There is little research on the determinants of MaPP usage. Therefore, this study presents a novel and exploratory approach. The findings indicate that policy activity and inclusion are positively correlated. However, results on the determinants of policy tightening are inconclusive. Therefore, the thesis concludes with the observation that further research on what determines policy activity is needed to narrow the knowledge gap between MaPP effectiveness and usage.