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on Central and Western Asia |
| By: | Brownbridge,Martin; Canagarajah,Sudharshan |
| Abstract: | Armenia, Georgia, the Kyrgyz Republic, and Tajikistan have all experienced substantial out-migration of workers and an associated inflow of workers'remittances over the past two decades. These four countries have much higher human capital, as measured by the Human Capital Index, than is typical for countries with similar levels of per capita income, and this may enable migrant workers to exploit opportunities to work in economies where labor productivity is higher. The inflow of workers'remittances has had effects analogous to those of Dutch disease in the Kyrgyz Republic and Tajikistan, which have experienced a large rise in expenditure to output and the share of services in gross domestic product, appreciation of the Balassa-Samuelson adjusted real exchange rates, and poor trade performance. In Armenia and Georgia, where remittances are a smaller share of gross domestic product, the effects were much more muted and their trade performance was much better. |
| Date: | 2020–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9111&r=all |
| By: | Anginer,Deniz; Demirguc-Kunt,Asli; Mare,Davide Salvatore |
| Abstract: | This paper examines changes in bank capital and capital regulations since the global financial crisis, in the Europe and Central Asia region. It shows that banks in Europe and Central Asia are better capitalized, as measured by regulatory capital ratios, than they were prior to the crisis. However, the increase in simple equity ratios for the same banks has been smaller over the past 10 years. The increases in regulatory capital ratios have coincided with a reduction in the stringency of the definition of Tier 1 capital and reduction in risk-weights. Further analyses showthat bank risk in Europe and Central Asia is more sensitive to changes in simple leverage ratios than in regulatory capital ratios, consistent with the notion that equity ratios only include high-quality capital and do not rely on internal risk models to compute risk-weights. Although there has been some effort to increase capital and liquidity requirements for institutions deemed systemically important, the region has been lagging in addressing the resolution of these institutions. |
| Date: | 2020–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9138&r=all |