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This article examines the critical role of life insurance in India's economic development, focusing on its growth, contributions, and challenges. The life insurance sector in India has experienced significant expansion due to government initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PJJBY), which have improved market penetration and accessibility. Key findings include the importance of a robust regulatory framework, the impact of financial inclusion, and the necessity of enhancing public awareness and trust. The study also highlights future research directions, such as exploring technological innovations, evaluating government schemes, and understanding consumer behavior. The article concludes by emphasizing the sector's role in fostering financial stability and economic growth, while addressing ongoing challenges and identifying opportunities for further development. [ABSTRACT FROM AUTHOR]

We study the impact of unexpected climate shocks on banks' individual and systemic risks. Employing climate risk measures developed using the Billion-Dollar Weather and Climate Disasters data from the National Oceanic and Atmospheric Administration (NOAA) and Dealscan syndicated lending data, we find that climate risk exposure acquired through cross-state lending increases banks' individual and systemic risks. We also find that bank profitability helps offset some of the adverse effects of climate risk. Banks reduce lending and increase loan loss reserves after the experience of an unexpected climate shock. The loan-level analysis reveals that the effect of climate risk exposure on bank risks is more pronounced for loans granted for operating and capital expenditures. We contribute to a growing literature on the impact of climate risk on financial stability and the development of robust measures of climate risk for banks. [ABSTRACT FROM AUTHOR]

This study aims to identify the effect of the financial inclusion sub-index on financial stability in the banking industry proxied by Bank Z Score. This research uses secondary data in the form of panel data with annual data from 2011 to 2021 and the scope of 5 G20 Emerging Market countries. The analysis technique in this study uses the Fixed Effect Model (FEM). The results showed that the banking penetration dimension had a negative and significant effect, bank availability had a significant positive effect, while bank usage had a positive but not significant effect on banking stability. To achieve better financial inclusion and sustainable banking stability in emerging market countries, collaboration between governments, regulators, financial institutions, and other stakeholders is needed. Effective banking regulation and supervision can be the basis for introducing new financial practices and services that support financial inclusion for all levels of society. [ABSTRACT FROM AUTHOR]

This paper aims to identify the most emission-intensive industries in the Czech economy using an environmentally extended input-output framework to determine whether decarbonization of the economy might jeopardize financial system stability. The main contribution of this paper to the existing literature lies in connecting bank industry-specific loan exposures with industry-specific emission intensities, which are used to calculate potential credit losses after the introduction of a carbon tax. The analysis shows that the Czech banking sector is not significantly concentrated in industries which are most vulnerable to decarbonization of the economy and threats to the financial stability of the green transition are currently low. [ABSTRACT FROM AUTHOR]

This paper analyzes the stability of stablecoins and proposes a framework to test for absolute and relative stability of stablecoins. Based on high-frequency data, we find strong evidence of excess price variations. While Bitcoin is a likely source of this excess volatility because stablecoin returns, volatility and volumes are highly correlated with corresponding Bitcoin time-series, we also demonstrate through a quasi-natural experiment that stablecoins increase the trading volume of Bitcoin. The findings suggest stablecoins play a key role in cryptocurrency markets. [ABSTRACT FROM AUTHOR]

We empirically investigate the effectiveness of 17 macroprudential policy (MPP) instruments on financial and macroeconomic stability for 98 emerging market and 36 advanced economies between 1990 and 2020. We use Difference-in-Difference estimators with heterogeneous treatment effects which are robust in estimating treatment effects as compared to time and group fixed effects estimators. We find that while in short-term MPP instruments stabilize capital & other investment flows, in longer term, the regulations may increase fluctuations. Further we find that the MPP regulation reduces leverage growth in short-term, however, it may increase leverage growth in longer term. Our results show that broadly, tightening MPP instruments has a stabilizing impact on financial variables. However, the results indicate that MPP may have negative spill-over effects on real GDP growth. The impact on real effective exchange rate depreciation is mixed. [ABSTRACT FROM AUTHOR]

AbstractAfter discussion of the lender of last resort before Bagehot, we turn to what Bagehot actually said about the concept, the institutions involved, and appropriate lending terms for the Bank of England in a crisis. We examine the application of “Bagehot principles” in several nineteenth, twentieth and twenty-first century episodes. By operating through the discount houses in the nineteenth century, the Bank of England was able to focus on the quality of the paper presented for discounting, rather than on the solvency of each individual bank. Emphasis was thus on the stability of the system, not of individual banks. [ABSTRACT FROM AUTHOR]

This insightful study delves into the intricate relationship between key digital finance adoption indicators and the stability of the banking sector in Ethiopia, an emerging economy undergoing rapid digitalization. Covering annual data from 1991 to 2022 and utilizing an autoregressive distributed lag (ARDL) approach alongside Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) techniques, the researchers uncover thought-provoking findings that challenge conventional wisdom. Contrary to expectations of a positive long-term association, the analysis reveals a statistically significant negative relationship between both internet usage and mobile phone subscriptions and Ethiopia's banking system's financial stability. This robust result, validated through rigorous robustness checks, suggests that the breakneck pace of digital transformation may outpace the development of robust regulatory frameworks and risk management practices, ultimately undermining the overall stability of the financial sector. Interestingly, the short-term analysis presents a more nuanced picture, with mobile phone subscriptions exhibiting a stabilizing effect in the immediate aftermath. This intriguing dichotomy highlights the complex and evolving dynamics at play, where the challenges of integrating digital finance with the traditional banking infrastructure and the persistence of informal financial activities potentially offset the benefits of enhanced financial inclusion and transaction efficiency. These thought-provoking findings carry crucial implications for policymakers and industry stakeholders navigating the digital revolution. Policy implications emphasize the need for robust regulatory frameworks, enhanced cyber security measures, and improved financial literacy. The findings underscore the importance of a nuanced approach to digital finance in emerging economies, advocating for continuous adaptation of policies to address the evolving landscape of financial technology. Continued inquiry can better guide policies that foster digital transformation while safeguarding stability, especially in rapidly developing regions like sub-Saharan Africa. Article Highlights: Digital finance growth may harm bank stability in Ethiopia. Short-term benefits from mobile money exist, but long-term risks outweigh them. Strong regulations and financial education needed to balance digital growth and stability. [ABSTRACT FROM AUTHOR]

Marriage provides a key insight to American life. Marriage is a significant factor when analyzing our society and our current structure – a widening gap among social classes. The decline in marriages among middle and lower class reflects issues with education attainment and financial stability. Unfortunately, there has been no initiative to address the declining marriage rate. This Note proposes a two‐alternative approach to implementing family‐friendly policies and a nationwide network of Family Centers that will aid the current and next generation. Society will obtain a more educated, cooperative workforce, with a more stable family structure across all classes. Key points for the family court community: Marriage is becoming a class privilege.The family structure has changed among the middle and lower class.Stable marriages are essential for society's economic benefit and child well‐being.The U.S. ranks among the lowest within middle‐ and high‐income countries for family‐friendly policies.Government promotion is needed to incentivize marriage. [ABSTRACT FROM AUTHOR]

Copyright of African Journal of Reproductive Health is the property of Women's Health & Action Research Centre and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This is the first study to investigate whether country institutional quality influences the impact of supervisory power on insurer soundness. It tests the hypothesis arguing that institutional quality enhances the implementation capacity of supervisors versus the one that maintains that institutional quality mitigates the impact of supervisory power on insurer soundness, particularly when this effect is negative. An analysis is carried out on firms operating in the insurance markets of 12 Muslim-populous countries over the eight-year sample period 2009–2016. As a proxy of insurers' financial stability, we use the Z-score and conduct the study by employing the two-step system generalised method of moments. We find a negative impact of supervisory power on insurer soundness—exercised by increasing portfolio risk—that is mitigated by national institutional quality, in particular by government effectiveness, regulatory quality and control of corruption. The findings emphasise the view that national institutional quality avoids private use of supervision. [ABSTRACT FROM AUTHOR]

Purpose: The study aims to find out the impact of financial inclusion and financial development on financial stability using panel data from eight countries in the Middle East and North Africa (MENA). Design/methodology/approach: To achieve the aim of the study, the researcher prepared two indicators of financial inclusion and governance to find out the impact of financial development on the relationship between financial inclusion and financial stability. Data on financial inclusion was obtained from the International Monetary Fund, data on financial development and financial stability were obtained from the World Bank. Findings: The results of the fixed and random effect methods show that financial inclusion has a significant positive effect on financial stability. Additionally, financial development represents a moderating variable in the significant positive effect on the relationship between financial inclusion and stability in the MENA countries. Research limitations/implications: The current study suffers from some limitations that researchers must be aware of in future research. First, there is an inability to determine qualitative aspects such as time and cost when designing a composite indicator of financial inclusion. Second, due to limited data, we used only eight countries from the MENA. It is suggested to expand the sample to include other countries. Originality/value: This paper contributes to the related literature between financial inclusion and financial stability by confirming or denying the results of previous studies. Also, to the best of the author's knowledge, this paper is the only one that explains the role of financial development in the relationship between financial inclusion and stability in MENA countries, using a composite index to calculate financial inclusion. Finally, the study seeks to focus the attention of the government and policymakers to build a system of financial inclusion that leads to improving financial stability. [ABSTRACT FROM AUTHOR]

We propose a method based on control charts to identify in real-time sudden deposits outflows through the payment system. The performance of the methodology is assessed with both Monte Carlo simulations and real transaction-level TARGET2 data for a large sample of Italian banks. We identify a set of idiosyncratic bank stress episodes. Using high-frequency payment system data, we provide new evidences on the interaction between retail, wholesale, and central bank funding in the post global financial crisis period. [ABSTRACT FROM AUTHOR]

Aimed at preserving firm-level and macro-financial stability against climate-related physical and transition risks, green financial policies are often viewed as complements to fiscal policies. While the latter are aimed directly at an economy-wide state-led green transformation, the former are targeted specifically towards the financial sector. In this context, this article makes two contributions to the climate change/green finance literature. First, it creates a green financial policy intensity index which measures the cumulative number of such policies rolled out by countries from 1995 till 2021. Second, it empirically examines the nexus between the uptake of these policies and fiscal space. Our findings suggest that higher physical and transition climate risks are associated with more green financial policies being undertaken, but only for countries with limited fiscal space or a high fiscal deficit. [ABSTRACT FROM AUTHOR]

The European Union's (EU) ambition is to encourage clearing at EU Central Counterparties (CCPs) and with EU clearing members (CMs). This is to reduce reliance on systemic non-EU CCPs, and to build a more attractive and robust EU clearing market. To achieve this, the European Market Infrastructure Regulation (EMIR) 3.0 requires EU CMs and clients subject to the clearing obligation to hold active accounts at EU CCPs. Although it is very unlikely that the watered-down compromise will fulfil the EU's ambition, more importantly it still risks diminishing the competitive position of EU companies, leading to EU clients who do not fall under the clearing obligation to use non-EU CMs, and directing non-EU clients' euro-denominated interest rate swaps trading activity towards non-EU dealers. This seems contradictory to the policy objective of building a strong EU Capital Markets Union (CMU). With regard to supervision, EMIR 3.0 is a missed opportunity for a centralised supervisory framework. Just enhancing the current decentralised supervision mechanism, which is based on cooperation and information sharing between National Competent Authorities (NCAs), is not enough. A European centralised supervisor will not only strengthen risk monitoring and (eventually) minimise systemic risks but will also reduce supervision costs, the number of procedures, divergent interpretations of EMIR rules and the exchange of data. Whereas the main focus with regard to EMIR 3.0 was geared towards the active account requirement and whether or not to centralise supervision of EU CCPs, regulators and market participants would be ill advised to let discussions over third-country CCP equivalence issues distract them from other important and persistent challenges in the derivatives clearing markets. There are currently three pressing issues that require attention: clearing access and capital rules, portability and clearing models, as well as liquidity and collateral optimisation. A failure to address them risks undermining the key driver for derivatives clearing, which is increasing financial stability. [ABSTRACT FROM AUTHOR]

Interactions between monetary and macroprudential policy are crucial in safeguarding price and financial stability. This study investigates the macroeconomic and financial impacts of monetary and macroprudential policy interactions in South Africa, a leading African economy in developing macroprudential frameworks. The existing literature largely focuses on the effectiveness of these policies independently, leaving a gap in understanding how their interaction affects their overall efficacy. Employing a Structural Vector Autoregression (SVAR) model and utilizing data from 1980 to 2023, this study uniquely incorporates the financial cycle to represent financial developments. The results reveal significant effects of both policies on key variables such as output, the financial cycle, and the price level. Specifically, policy contractions reduce output and the financial cycle but increase the price level, illustrating the 'price puzzle'. This study further identifies an endogenous response between the two policies: monetary policy reacts by rising to reduce price levels following a macroprudential shock, while macroprudential policy rises to stimulate financial activity after a monetary shock. These findings underscore the importance of using both policies in conjunction but in opposite directions to balance their effects and achieve price and financial stability. This study suggests that an optimal combination of monetary and macroprudential policies is critical for maintaining macroeconomic equilibrium. [ABSTRACT FROM AUTHOR]

Whether bank competition promotes access to finance is highly debated in economic literature and policy circles. Amidst this debate, this paper investigates the implications of bank competition, financial stability, and gender gap on access to finance for 40 Sub‐Saharan African countries using 12,504 firm‐level observations from the World Bank Enterprise Survey. In addition to structural measures, competition has been measured by three non‐structural measures (Lerner index, Boone indicator, and Panzar‐Rosse H‐statistic). Results obtained through the probit model and probit model with sample selection (PSS) suggest that a higher degree of bank competition positively affects firm's credit availability in the Sub‐Saharan African region. Results also indicate that firms owned by female entrepreneurs are more likely to report greater difficulties in obtaining formal finance. The findings suggest that policymakers and other stakeholders should direct policy actions that promote competition in the credit market by reducing the cost of credit. [ABSTRACT FROM AUTHOR]

This study investigates the impact of financial stability on environmental degradation in Turkey, controlling for economic growth, renewable energy consumption, and primary energy consumption between 1990 and 2019. The study employs various statistical methodologies, including LS Unit Root, Fourier ARDL, DOLS, and FMOLS tests. The findings reveal an inverse relationship between financial stability and environmental degradation. Both economic growth and primary energy consumption are found to exacerbate environmental degradation. This study recommends that policymakers incorporate financial stability into policies aimed at reducing CO2 emissions. Furthermore, it emphasizes the importance of investing in renewable energy infrastructure and the transportation sector to effectively mitigate environmental degradation. [ABSTRACT FROM AUTHOR]

In our paper, we provide a review of the literature to identify the main transmission channels through which geopolitical risks (GPR) influence macro-financial stability. We begin by analyzing the existing measures of geopolitical tensions and uncertainty, showing that GPR impacts economic and financial uncertainty episodically, with significant but transient spikes during major geopolitical events. The review then identifies the two principal channels through which GPR affects macro-financial stability: the financial channel, operating through increased uncertainty and heightened risk aversion, leading to shifts in investment portfolio allocations and cross-border capital flows; and the real economy channel, impacting global trade, supply chains, and commodity markets. Using data from the past two to three decades, we provide graphical analyses that confirm the findings in the literature, highlighting the episodic nature of the impact of GPR. These insights underscore the need for policymakers and financial institutions to adopt event-specific approaches to effectively mitigate the adverse effects of geopolitical risks on economic and financial systems. [ABSTRACT FROM AUTHOR]

Promoting financial stability is one of the main priorities for the governments of countries seeking to achieve sustainable economic growth. The article aims to assess and model the impact of macroeconomic factors on the financial stability of the Russian Federation in the period 2010-2030 using ADF, OLS, VAR, ARCH, VECM and other techniques. In addition, the linear causal relationship between a group of 6 macroeconomic indicators and the financial stability of the Russian Federation was studied. The results of this research show that Russia's financial stability depends mainly on exports of crude oil and natural gas, price stability, volume of government debt, deficits and surpluses of the state's budget, exchange rate stabilization of national currency, and effectiveness of the banking system. Additionally, events taking place in Eastern Europe, the Middle East and the African continent may negatively affect Russia's financial security if it fails to take the necessary preventive measures. [ABSTRACT FROM AUTHOR]

This paper introduces a dynamic dependence framework to calculate various indicators of systemic sovereign default risk. Our analysis reveals a notable increase in systemic fragility among euro-area sovereigns since the onset of the Subprime Crisis, particularly during the First Greek Bailout in May 2010. Furthermore, our measures successfully capture key events within the euro area, including Mario Draghi's impactful "whatever-it-takes" speech in mid-2012 and the Cypriot Banking Crisis of 2012-2013. The incorporation of dynamic dependence into our measures provides a more comprehensive depiction of systemic risk within the euro area sovereign system, often demonstrating distinct dynamics when compared to their static counterparts. These findings carry significant policy implications and contribute to enhancing our understanding of systemic risk among euro-area sovereigns. [ABSTRACT FROM AUTHOR]

This study estimates the financial cycle for Botswana using the Christiano–Fitzgerald band‐pass filter, unobserved components approach and a Markov switching dynamic factor model. Using real credit and equity prices, together with several macroeconomic variables from 2001Q1 to 2021Q4, we find that the domestic financial cycle generally captures movements along the business cycle, with peaks reflecting the cumulative build‐up of risks during the boom that ultimately burst, coinciding with periods of financial distress. These findings shed light on the implications of financial fluctuations on domestic financial stability, hence, inform effective calibration of macroprudential tools, while also providing traction for implementation of the recently approved macroprudential policy framework for Botswana. [ABSTRACT FROM AUTHOR]

This study aims to investigate the causal impact of economic and financial stability on political stability in Estonia. With the purpose of determining robust results for the study in mind, both traditional and modern causality methods are employed. To that end, we utilized the nonparametric Diks and Panchenko causality and frequency-domain Granger causality tests. Our nonparametric causality findings reveal that changes in economic and financial stability in Estonia lead to significant changes in political stability, thus indicating how economic and financial factors are important for political stability in Estonia. These results are consistent with findings from spectral causality at different frequencies. [ABSTRACT FROM AUTHOR]

Copyright of Turkish Studies - Economics, Finance, Politics is the property of Electronic Turkish Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In modern conditions of the unpredictability of changes in the economic environment, ensuring the continuity of management of agrarian enterprises requires adequate awareness of the need to choose strategic vectors of their development based on the application of analytical tools for risk assessment. The article discloses the prerequisites for the development of methodological support for comprehensive risk analysis and substantiates the scenarios for choosing the financial strategy of agrarian enterprises in conditions of uncertainty of changes in the economic environment. The purpose of the study is to substantiate the theoretical and methodological principles of comprehensive risk analysis as a tool for choosing a financial strategy for the development of agricultural enterprises in conditions of uncertainty, which is solved through the study of the prerequisites for assessing the risks of the activities of agricultural enterprises in conditions of uncertainty, etc. In order to form an information platform, regarding the assessment of the consequences of risk events, for the selection of financial strategy vectors, a coordinated system of risk indicators has been built. The impact of internal and external environmental factors on the risks of agricultural enterprises has been identified. For the ranking of strategic alternatives for the development of enterprises, a sequence of assessing the risk of reducing the profitability of enterprises is proposed. Procedures for scenario analysis of trends in expected financial indicators are substantiated. As a generalizing indicator of choosing a financial strategy for the development of enterprises, an indicator of market value, adjusted for risk factors and financial stability potential reserves, is proposed. The practice of using analytical methods of risk assessment when choosing a financial strategy is demonstrated in the example of the activities of domestic agricultural holdings LLC "Kernel-Trade", PJSC "MHP", JSC "Astarta-Kyiv" for the years 2018-2022. [ABSTRACT FROM AUTHOR]

Since the beginning of trade liberalization in the 1970s, many financial crises have occurred in various countries. Following the financial crisis of 2008, macroprudential regulation in banking has emerged, emphasizing the importance of overall financial stability rather than the stability of individual banks. Many countries have established a new institution for this regulation, known as the "financial stability council." While most countries have formed such councils, Iran has yet to do so. A new government bill is attempting to establish this council, but its structure is not clearly defined, necessitating further research. Using a descriptive-analytic approach and library sources, we aim to answer the question: how the legal framework for the financial stability council should be designed? Our findings suggest that the financial stability council of Iran should operate independently of the government, the central bank, and the finance ministry. Its members should include representatives from the central bank, the finance ministry, and external experts. [ABSTRACT FROM AUTHOR]

The study examines the relationship between financial stability and inclusion in the context of two significant economic shocks to India: the demonetization and the COVID-19 outbreak. The first section of the paper discusses the rise of financial inclusion and its importance in a country where a sizable percentage of the population lives in rural areas. Ensuring access to formal banking and financial services, or financial inclusion, is essential for reducing poverty, creating jobs, and fostering economic progress. Financial inclusion and financial stability are strongly related. Financial stability is the capacity to endure unanticipated financial shocks. This study centers on the effects of demonetization in 2016, which caused a cash crunch and made people rethink financial inclusion programs, which hastened their implementation. Similar to this, lockdown measures during the COVID-19 pandemic forced a move towards digital financial inclusion, which increased the appeal of online financial services. The necessity of stability and financial inclusion for sustainable growth in a large country like India is emphasized in the conclusion. Ensuring that everyone, particularly those from low-income backgrounds, has access to financial services promotes social cohesion and a strong economy. In the end, inclusive practices' financial stability promotes national progress. [ABSTRACT FROM AUTHOR]

The paper focuses on the relationship between cryptocurrencies and economic policy uncertainty (EPU) shocks by adopting robust econometric techniques. Results on monthly data from 2016 to 2022 confirm that the volumes of cryptos are stationary, and the short- and long-run impacts of uncertainty shocks are significantly positive, and, in most cases, begin to show already in the first six months after the shock. When uncertainty significantly prevails, investors increase their demand for cryptos. The ARDL(12,11) specifications for Bitcoin show a significant increase in volumes of around 1% occurring over a year after a unit increase in economic policy indices. Conclusions from the findings are related to supervision, and monitoring of markets and financial stability. [ABSTRACT FROM AUTHOR]

Purpose: The main objective of this study is to analyze the mediating role of intellectual capital in the relationship between diversification, financial stability, and efficiency of the banking sector in Ethiopia. Design/methodology/approach: Secondary data for this study was obtained from audited financial statements of 17 Ethiopian commercial banks for a decade starting in 2013. A descriptive and explanatory research design with a quantitative research approach was employed. The seemingly unrelated Hierarchical regression analysis is used to estimate diversification's effect on banks' financial stability and efficiency, considering the interaction between diversification and intellectual capital as a mediating variable. Findings: The Mediation analysis reveals that asset diversification improves the financial stability of commercial banks when mediated by intellectual efficiency. Investment diversification negatively impacts risk-adjusted return on asset and Z score. Intellectual capital significantly enhances commercial banks' efficiency and financial stability in Ethiopia and mediates the relationship between geographic diversification, financial stability, and efficiency. The mediation analysis also indicates that intellectual capital significantly mediates the relationship between income diversification and efficiency. Practical implications: This study highlights the importance of intellectual capital and promotes its strategic allocation by management and regulatory bodies to enhance the financial stability and operational effectiveness of the banking industry in Ethiopia. Originality/value: To the best of the researcher's knowledge, this study is one of the rare attempts to investigate the mediating role of intellectual capital on the nexus between diversification, financial stability, and efficiency of commercial banks in Ethiopia. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Economics, Politics, Humanities & Social Sciences / Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi is the property of International Journal of Economics, Politics, Humanities & Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the influence of fraud disclosure (FR_DISC) in annual reports on the financial stability of Takaful insurance (TKI) in Saudi Arabia over the period of 2014 to 2022. Moreover, the current study aims to explore the mediating impact of Shariah board size in shaping this relationship using agency theory and examines whether the different Islamic governance attributes could affect this stability differently. Using the dynamic generalized method of moments (GMM) approach to address the possibility of endogeneity, it was found that FR_DISC is significantly negatively related to the financial stability of a sample TKI. We also provide evidence that the larger the size of a Shariah board, the less FR_DISC affects TKI stability. Furthermore, significant negative influence of ownership concentration and the proportion of non-executives' independent board members on the stability of insurance companies was also observed. Overall, our analysis reveals several significant challenges if accounting and whistleblowing are to contribute to financial stability. [ABSTRACT FROM AUTHOR]

The current study aims to develop a financial stability model in Iraq; after reviewing the relevant literature and sources related to financial stability and considering Iraq's social, economic, political, and cultural conditions, a conceptual model and a research questionnaire have been developed. Based on the developed conceptual model, macro variables at the level of the economy, micro variables at the level of companies, the environmental variables of companies, and corporate governance have been selected as model dimensions. Each dimension has several components, including several indicators; 39 indicators were measured through questions in 2024. The research questionnaire was subjected to the opinion of 21 experts with sufficient experimental and academic records on this subject, and by using the Analytic Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods, the results were analyzed, and the final model was extracted. In this model, the scientific method used to analyze the results determines the weight of each dimension, component, and indicator. The results of this research show that the dimensions of corporate governance, the variables of the company environment, micro variables at the company level, and macro variables at the economic level with coefficients of 0.345, 0.251, 0.236, and 0.168, respectively, have the most significant impact on the ranking of the company's financial stability. So far, research has yet to be conducted to present the financial stability model of Iraqi companies. Therefore, the present research is one of the first studies in this respect, which presents a model both qualitatively (by designing a questionnaire and conceptual model) and quantitatively (through a mathematical model) to measure financial stability that can help the development of science and knowledge in this field. [ABSTRACT FROM AUTHOR]

In 'Embracing the Brave New World: A Response to Demekas and Grippa', a response to our article 'Walking a Tightrope: Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy', both published in the Journal of Financial Regulation, Gruenewald, Knijp, Schoenmaker, and van Tilburg claim that climate risk is a clear and present danger to financial stability that justifies imposing higher capital requirements on supervised firms. Until the current prudential risk framework is revised to fully capture climate risk, they advocate ad hoc measures, such as adjustments to risk weights, which, they believe, would have the desired effect. In this article, we argue that these claims are misguided. Given the nature of climate risk, risk assessment models cannot provide a reliable basis for calibrating capital requirements. On the basis of the evidence, prudential tools would have only a negligible impact on the transition. And the idea of adjusting risk weights for climate exposures has been abandoned—for good reasons. Ultimately, there is nothing financial regulation can do about the energy transition that an appropriately designed carbon tax cannot do better. Central banks and financial regulators should resist the pressure to take on additional responsibilities that are essentially political and that they cannot properly discharge. [ABSTRACT FROM AUTHOR]

This investigation utilized the Midlife in the United States Survey (N = 3,258) to assess the relationships between sexual assault, sense of control, and financial stability. Age of first sexual assault and sexual assault revictimization were also considered in analyses of sexual assault survivors' data. Results revealed consistent associations between experiences of sexual assault and revictimization with lower financial stability and suggest that sense of control may be an indirect mechanism linking these variables. Findings have policy relevance and practical implications for practitioners. Restoring sexual assault victims' internal loci of control may promote more positive financial outcomes. [ABSTRACT FROM AUTHOR]

Luigi Pasinetti voiced his objections to the Stability and Growth Pact (SGP) at its very inception, in the late 1990s. The SGP has by now been in existence for almost one-quarter of a century. Its historical trajectory has proven its critics right, while its repeated revisions over time have increased its complexity and ineffectiveness to the point where the European Commission embarked on a process of overhaul, ending in a new EU fiscal governance framework. In the present article, we argue that Pasinetti's objections remain valid today, twenty-five years after he exposed them in a series of articles. The new version of the Stability and Growth Pact remains focused on debt reduction, ignores the role of money and of finance and keeps fiscal policy apart from the rest of the economy. The chances that it will succeed where its previous versions failed appear slim. [ABSTRACT FROM AUTHOR]

Purpose – This work analyzes, through social-environmental reports, whether banks with higher transparency in social-environmental policies better safeguard financial stability in Brazil. Design/methodology/approach – The analysis is carried out through a panel database analysis of the 42 largest Brazilian banks, representing 98% of the Brazilian financial system. Seeking to avoid spurious results, we followed rigorous methodological standards. Hence, we conducted an empirical analysis using a dynamic panel data model, we used the difference generalized method of moments (D-GMM) and the system generalized method of moments (S-GMM). Findings – The results show that the higher the transparency of social-environmental policies, the lower the chance of possible stress on the financial stability of Brazilian banks. In sum, this study builds evidence that disclosing risks related to policies about sustainability can enhance financial stability. It is essential to highlight that social-environmental transparency does not have as direct objective financial stability. Originality/value – The manuscript submitted represents an original work that analyzes whether banks with higher transparency in social-environmental policies better safeguard financial stability. Some countries, such as Brazil, have their potential for sustainable policies spotlighted due to their green territory and diverse natural ecosystems. Besides having green potential, Brazil is a developing country with a well-developed financial system. These characteristics make Brazil one of the best laboratories for studying the relationship between transparency in social-environmental policies and financial stability.

Abstract This insightful study delves into the intricate relationship between key digital finance adoption indicators and the stability of the banking sector in Ethiopia, an emerging economy undergoing rapid digitalization. Covering annual data from 1991 to 2022 and utilizing an autoregressive distributed lag (ARDL) approach alongside Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) techniques, the researchers uncover thought-provoking findings that challenge conventional wisdom. Contrary to expectations of a positive long-term association, the analysis reveals a statistically significant negative relationship between both internet usage and mobile phone subscriptions and Ethiopia's banking system's financial stability. This robust result, validated through rigorous robustness checks, suggests that the breakneck pace of digital transformation may outpace the development of robust regulatory frameworks and risk management practices, ultimately undermining the overall stability of the financial sector. Interestingly, the short-term analysis presents a more nuanced picture, with mobile phone subscriptions exhibiting a stabilizing effect in the immediate aftermath. This intriguing dichotomy highlights the complex and evolving dynamics at play, where the challenges of integrating digital finance with the traditional banking infrastructure and the persistence of informal financial activities potentially offset the benefits of enhanced financial inclusion and transaction efficiency. These thought-provoking findings carry crucial implications for policymakers and industry stakeholders navigating the digital revolution. Policy implications emphasize the need for robust regulatory frameworks, enhanced cyber security measures, and improved financial literacy. The findings underscore the importance of a nuanced approach to digital finance in emerging economies, advocating for continuous adaptation of policies to address the evolving landscape of financial technology. Continued inquiry can better guide policies that foster digital transformation while safeguarding stability, especially in rapidly developing regions like sub-Saharan Africa. Graphical Abstract

Understanding the impact of economic factors on bank lending is crucial in Kazakhstan’s modern economy, characterized by volatile inflation and fluctuations in real wages. This paper aims to investigate the link between bank lending and economic factors such as inflation, real wages, and consumer expenditure in a regional context. Data from the Bureau of National Statistics and the National Bank, covering the period from 2012 to 2022, were used to uncover how economic factors influence bank lending. For the analysis, various economic indicators were integrated through normalization and averaging. Analysis reveals significant regional disparities in real wages and consumer expenditures, which impact the demand for bank credit. The results of the correlation matrix showed that both real wages (P-value < 0.001) and inflation (P-value < 0.001) significantly impact bank lending, with an R² value of 0.998, indicating that the model explains 99.8% of the variation in bank lending. The regression analysis highlights that regions with higher real wages, such as Astana, Almaty, and Atyrau, provide the most favorable conditions for banking sector growth, demonstrated by a strong relationship between wages and bank lending. In contrast, regions with lower wage levels, such as Turkestan and Zhambyl, show a significantly weaker connection (around 0.65), reflecting their lower attractiveness for banking investment and emphasizing the need for policies to address social inequality. The Durbin-Watson test confirmed no autocorrelation in residuals (DW = 1.89), although heteroscedasticity was detected, suggesting the need for further model adjustments. The study emphasizes the importance of developing economic policies that can balance regional development and improve financial stability. AcknowledgmentsThis research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant “Development of mechanisms for reducing social inequality and improving the welfare of the population of Kazakhstan” AP19174744).

In modern economic conditions, business entities are increasingly paying attention to the issues of economic security, which allows businessmen to regularly monitor and control the state of financial stability. The vector of the direction of stable economic development of an economic entity has recently become increasingly important among entrepreneurs and is manifested through the introduction of elements of economic security into the system of financial and economic activity. Safe entrepreneurial activity is an important and necessary condition for healthy competition and sustainable development of a business entity of any form of ownership, regardless of the type of activity carried out. The economic security of an enterprise should be considered as a multifaceted category consisting of internal and external factors and risks. The article highlights the problem of insufficient implementation of the existing mechanism of functioning at the enterprise PJSC “Penzkompressormash” of economic security and, as a consequence, the deterioration of the financial stability of the business entity. The purpose of the study is to substantiate the importance of economic security in entrepreneurial activity of any form of ownership, through solving the tasks set: analysis and assessment of financial stability, identification of «bottlenecks» and ranking them by causes of occurrence; search for reserves to improve the financial condition of the company, its solvency and financial stability; development of specific measures aimed at more effective use of financial resources and strengthening the economic condition of the enterprise. In the course of the research, the authors used such scientific methods as comprehensive and comparative analysis, generalization, synthesized and economic-statistical approaches. The basis of the theoretical methodology was formed from the works of modern scientists and economists, legislative acts of the Russian Federation, official publications, materials of scientific and practical conferences, etc. The article contains proposals for the use of elements of economic security as a necessity to bring an enterprise out of a difficult financial situation.

This study investigates the relationship between financial contagion and the transition to a circular economy in Romania, analyzing the impact of economic and environmental factors on CO2 emissions. Using an ARDL model, the study examines the short-term and long-term influence of variables such as GDP, recycling rate, resource productivity, foreign direct investment, and renewable energy consumption on CO2 emissions. The results show that, in the short term, resource productivity and foreign investments have a significant impact on emissions, while GDP has a positive influence on them. In the long term, although the analyzed variables suggest a potential for reducing emissions, the statistical significance is limited. The diagnostic tests confirm the stability and correct specification of the model, and the analysis suggests that the transition to a circular economy may be affected by Romania’s vulnerability to external financial shocks and underdeveloped infrastructure. The conclusions underline the importance of coherent policies and sustainable investment in support of sustainable development in Romania.

In the context of growing economic uncertainty, capital structure optimization is becoming a critical tool for minimizing financial risks, providing companies with the necessary stability and adaptability in modern conditions. This paper aims to develop theoretical foundations for the existing capital structure optimization methods and elaborate an optimal capital structure formation strategy to ensure companies’ financial stability and flexibility in conditions of high financial uncertainty. The article offers a stabilization-flexible approach to optimizing companies’ capital structure in financial instability and crises, making it possible to ensure the companies’ financial stability while preserving their ability to adapt to a volatile environment quickly. The main idea of the approach is the balanced use of equity capital and long-term and short-term liabilities to finance various components of assets, which helps to minimize risks and increase the efficiency of financial management. A roadmap for the implementation of the stabilization-flexible approach to optimizing the capital structure has been formed, the basis of which is the construction of a logical chain of actions, including the definition of companies’ goals, the assessment of available financial resources and risks, and the development of financing strategies, their implementation, further control and monitoring of results. The study results can be helpful for financial managers, analysts, and investors seeking to improve the efficiency of capital management and reduce the impact of external and internal risks on the financial condition of companies.

This paper aims to identify the role of monetary policy in ensuring not only price stability but also financial stability for the central bank of Tunisia. We employ the generalized method of moments on quarterly data during the period 2000-2020 for the Tunisian context to estimate various types of monetary policy rules. We compare the standard Taylor rule with the augmented version that incorporates non-performing loans as a financial variable. Our findings indicate a significant and positive impact of this variable on the monetary policy reaction function. Furthermore, our analysis highlights the ability of monetary policy to effectively balance the trade-off between its dual objectives of price and financial stability.

The aim of this study is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability, and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by Islamic banks. The study employs the fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data from 2013 to 2022. The findings indicate strong evidence that Islamic banking finance supports economic growth and improves financial system stability. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, reinforcing this link. Furthermore, oil rents in Saudi Arabia (KSA) have contributed to improving economic development and supporting the financial sector’s development to achieve economic diversification as outlined in the Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. AcknowledgmentThis work was supported and funded by the Deanship of Scientific Research at Imam Mohammad Ibn Saud Islamic University (IMSIU) (grant number IMSIU-RPP2023024).