nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2021‒03‒01
three papers chosen by

  1. Gender Inclusive Intermediary Education, Financial Stability and Female Employment in the Industry in Sub-Saharan Africa By Simplice A. Asongu; Yann Nounamo; Henri Njangang; Sosson Tadadjeu
  2. TLAC-eligible debt: who holds it? A view from the euro area By Carmela Aurora Attinà; Pierluigi Bologna
  3. Supporting Financial Inclusion with Graph Machine Learning and Super-App Alternative Data By Luisa Roa; Andr\'es Rodr\'iguez-Rey; Alejandro Correa-Bahnsen; Carlos Valencia

  1. By: Simplice A. Asongu (Yaounde, Cameroon); Yann Nounamo (University of Douala, Cameroon); Henri Njangang (University of Dschang , Cameroon); Sosson Tadadjeu (University of Dschang , Cameroon)
    Abstract: The study examines how financial stability modulates the effect of inclusive intermediary education on female employment in the industry for the period 2008-2018 in Sub-Saharan Africa. The empirical evidence is based on Tobit, Ordinary Least Squares (OLS) and Quantile regressions. There are positive interactive or conditional effects between inclusive intermediary education and financial stability in the Tobit, OLS and bottom quantiles estimations. A net positive (negative) effect is apparent in the 10th quantitle (median) of female employment in the industry distribution. Implications are discussed.
    Keywords: inclusive education; financial sustainability, gender economic inclusion
    JEL: E23 F21 F30 L96 O55
    Date: 2021–02
  2. By: Carmela Aurora Attinà (Bank of Italy); Pierluigi Bologna (Bank of Italy)
    Abstract: We identify two categories of potentially ‘bad investors’ in TLAC-eligible bonds for the purpose of bail-in, i.e. households and hedge funds. The exposure of households may create political economy problems for policy makers when they have to decide about bail-in, while holdings by hedge funds may increase the price volatility of these instruments in stress periods. We analyze the composition of the investor base of the TLAC bonds issued by euro area G-SIBs between 2013 and 2020 and make a first assessment of whether the observed developments could have lessened the above mentioned problems. We show that the composition of the holdings of the different sectors has changed significantly over time. The share directly held by households has declined, is low on aggregate, and should not necessarily be an obstacle to the resolution of a G-SIB. However, there is a negative correlation between households’ TLAC holdings and their financial education. The information gap around the holdings of hedge funds means a full assessment of their role is not feasible. The market tensions that followed the Covid-19 shock did not negatively affect investments in TLAC debt, except for those of households which fell markedly in the first half of 2020.
    Keywords: bail-in, TLAC, resolution, G-SIB, Covid-19
    JEL: E44 G11 G21 G23 G28 G5
    Date: 2021–02
  3. By: Luisa Roa; Andr\'es Rodr\'iguez-Rey; Alejandro Correa-Bahnsen; Carlos Valencia
    Abstract: The presence of Super-Apps have changed the way we think about the interactions between users and commerce. It then comes as no surprise that it is also redefining the way banking is done. The paper investigates how different interactions between users within a Super-App provide a new source of information to predict borrower behavior. To this end, two experiments with different graph-based methodologies are proposed, the first uses graph based features as input in a classification model and the second uses graph neural networks. Our results show that variables of centrality, behavior of neighboring users and transactionality of a user constituted new forms of knowledge that enhance statistical and financial performance of credit risk models. Furthermore, opportunities are identified for Super-Apps to redefine the definition of credit risk by contemplating all the environment that their platforms entail, leading to a more inclusive financial system.
    Date: 2021–02

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