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on Payment Systems and Financial Technology |
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Issue of 2024‒03‒18
thirty papers chosen by |
| By: | Martin Brown; Laura Felber; Dr. Christoph Meyer |
| Abstract: | Financial intermediaries play an important role in consumer adoption and use of payment technology. Card schemes and card-issuing banks set rules for cashless payments between consumers and merchants. We document that these rules have a strong causal impact on the use of digital payment technology. We study an increase in the value limit for contactless cardholder verification (“tap-and-go” limit) that was introduced at the onset of the COVID-19 pandemic. Our analysis is based on anonymized, transaction-level data for a large sample of point-of-sale (POS) debit card payments between 2019 and 2021. We show that the increase in the “tap-and-go” limit caused a significant increase in the consumer use of contactless payments but only a minor increase in first-time adoption of this payment technology. Our results suggest that policy-makers are advised to consider the role of intermediaries and verification rules when evaluating payment innovations, such as instant payment systems or central bank digital currencies (CBDCs). |
| Keywords: | Payment choice, Financial intermediation, Technology adoption, Contactless payments, COVID-19 |
| JEL: | D14 E42 G21 G23 G50 O33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2023-08&r=pay |
| By: | Scarpini, Celeste; Santoro, Fabrizio; Abounabhan, Mary; Diouf, Awa |
| Abstract: | In this paper we look into the increasing use of electronic payment technologies in low-income countries (LICs), with a particular focus on the use of mobile money in Ghana. Our study evaluates the effectiveness of tax exemptions for incentivising businesses and customers to adopt digital merchant payments, and shaping their perceptions of the tax system. Specifically, we investigate the impact of an exemption embedded in Ghana's electronic transfer levy (e-levy), implemented in May 2022. Through a mixed-methods approach, involving survey data from 1, 065 businesses and focus group discussions with Ghanaian citizens, we explore the barriers and drivers to merchants' (businesses’) registration with mobile money for digital merchant payments. We assess the impact of the exemption on payment methods and customer preferences, as well as merchants' perceptions of the tax system. Our findings highlight that larger digitally- and financially-inclusive businesses are more likely to adopt digital merchant payments. The exemption appears to have encouraged the use of mobile money for merchant payments, leading to a shift away from personal accounts. However, cash remains prevalent among both users and non-users of mobile money. Merchants using the exempted service express more satisfaction with various aspects of the e-levy policy, and show greater trust in the government and the fairness of the tax system. Our study offers valuable insights into the adoption of digital merchant payments in LICs, and the impact of tax exemptions on merchants' behaviour and perceptions. We provide policy recommendations aimed at promoting the uptake of digital payments among merchants, and enhancing the effectiveness of the tax administration. |
| Keywords: | Finance, |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18237&r=pay |
| By: | Harald Uhlig |
| Abstract: | I discuss private and central-bank-issued digital currencies, summarizing my prior research. I argue that prices of private digital currencies such as bitcoin follow random walks or, more generally, risk-adjusted martingales. For central bank digital currencies, I argue that they enhance the “CBDC trilemma” facing a central bank: out of the three objectives, price stability, efficiency, and monetary trust, it can achieve at most two. |
| JEL: | E31 E42 E44 E52 G12 G21 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32159&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | The literature has not extensively examined the dangers of digital-only financial inclusion. The purpose of this chapter is to highlight the dangers of digital-only financial inclusion (DOFI). Using the discourse analysis method, the study showed that digital-only financial inclusion may be difficult to achieve when there is uneven availability and uneven access to digital devices. It was also argued that digital-only financial inclusion could lead to high cost of internet broadband, and it places much emphasis on accelerating digital access rather than protecting users who use digital finance platforms. Furthermore, it pays little attention to risk mitigation, and produces digital ID schemes that enable government surveillance. It also prioritizes digital access rather than financial health; and makes it easier to perpetrate fraud using digital means. Finally, it can enable the endless pursuit of power, and it prioritizes a digital version of financial inclusion at any cost. As much as possible, the strategies used to advance financial inclusion should not be too dependent on digital technologies because they only offer digital access and more access but may not improve the financial health of users in a significant way. |
| Keywords: | digital-only financial inclusion, digital financial inclusion, financial inclusion. |
| JEL: | G00 G20 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120152&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This chapter examines the role of embedded finance in increasing financial inclusion. The author shows that embedded finance increases financial inclusion by changing the way banked adults, unbanked adults and SMEs interact with financial services. Embedded finance provides greater access to finance for underserved adults and businesses and generates revenue for embedded finance service providers and banks, thereby presenting a win-win opportunity for both the users and providers of embedded financial services. |
| Keywords: | Financial inclusion, embedded finance, embedded payments, unbanked adults, poverty. |
| JEL: | I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120155&r=pay |
| By: | Jean Flemming; Ruth A. Judson |
| Abstract: | Technological advances in recent decades have brought about a wave of private-sector innovation in payments and have led central banks to explore a variety of improvements to their payment systems, including the possibility of issuing a central bank digital currency (CBDC). Survey evidence from the Bank for International Settlements (BIS) shows that over 90% of central banks are exploring CBDCs (Kosse & Mattei, 2022). The Federal Reserve is also exploring the implications of, and options for, introducing a CBDC. |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2024-02-16&r=pay |
| By: | Ozili, Peterson Kitakogelu |
| Abstract: | The chapter analyzes the implication of central bank digital currency (CBDC) issuance for financial stability and monetary policy. It was shown that widespread central bank digital currency adoption and usage may accelerate bank deposit to CBDC migration which could elevate liquidity risk in the banking sector, increase interest rate, reduce bank loan supply, lower bank profit, increase the likelihood of bank panic, and transmit financial stability risks to the financial system. Also, issuing a central bank digital currency can strengthen monetary policy transmission if there is effective coordination between the monetary policy rate and the central bank digital currency deposit rate. If done properly, changes in the central bank digital currency deposit rate will affect households and businesses and compel commercial banks to respond by adjusting their deposit rates too, thereby enhancing the interest rate channel of monetary policy. |
| Keywords: | CBDC, interest rate, central bank digital currency, financial system, banks monetary policy, financial stability |
| JEL: | E42 E51 E52 G21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120146&r=pay |
| By: | Martin Brown; Yves Nacht; Dr. Thomas Nellen; Helmut Stix |
| Abstract: | We examine how payment choice affects discretionary spending for a representative sample of consumers. Our analysis is motivated by a model of intertemporal choice in which intramonth liquidity constraints are endogenously determined by payment choice and cash management. In the model, present-biased consumers overspend if they choose to pay by card, as their spending is not limited by the amount of cash at hand. Our empirical analysis is based on matched payment diary, payment methods and behavioral survey data. We find that present-biased consumers spend more, the more often they use cashless payment instruments. The effect of cashless payments on spending is strong both for low- and high-income consumers but not among young consumers. We find no robust evidence that consumers choose cash payments to self-constrain their spending. |
| Keywords: | Digital payments, Cash management, Payment choice, Present bias, Intertemporal choice, Preanalysis plan |
| JEL: | E41 G20 O33 D14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2023-06&r=pay |
| By: | Dirk Bergemann (Yale University); Alessandro Bonatti (MIT); Nicholas Wu (Yale University) |
| Abstract: | We ask how the advertising mechanisms of digital platforms impact product prices. We present a model that integrates three fundamental features of digital advertising markets: (i) advertisers can reach customers on and off-platform, (ii) additional data enhances the value of matching advertisers and consumers, and (iii) bidding follows auction-like mechanisms. We compare data-augmented auctions, which leverage the platformÕs data advantage to improve match quality, with managed campaign mechanisms, where advertisersÕ budgets are transformed into personalized matches and prices through auto-bidding algorithms. In data-augmented second-price auctions, advertisers increase off- platform product prices to boost their competitiveness on-platform. This leads to socially efficient allocations on-platform, but inefficient allocations off-platform due to high product prices. The platform-optimal mechanism is a sophisticated managed campaign that conditions on-platform prices for sponsored products on off-platform prices set by all advertisers. Relative to auctions, the optimal managed campaign raises off-platform product prices and further reduces consumer surplus. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2367&r=pay |
| By: | Koefer, Franziska; Bokkens, Amber; Preziuso, Massimo; Ehrenhard, Michel |
| Abstract: | This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives. This is the third paper resulting from a research project on 'Strengthening Financial Inclusion through Digitalisation' (SFIDE), initiated by EIF's Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:283601&r=pay |
| By: | Abounabhan, Mary; Diouf, Awa; Santoro, Fabrizio; Sakyi-Nyarko, Carlos; Scarpini, Celeste |
| Abstract: | This study investigates the intricate dynamics surrounding the implementation and reception of mobile money taxes, focusing on Ghana as a case study. Consumer-level mobile money taxes, particularly controversial, have sparked large-scale protests, prompting policy revisions in various countries, including Uganda, Cote d'Ivoire and Benin. Ghana’s electronic transfer levy (e-levy) not only followed this trend of public dissent, but also triggered the country’s first budgetary rejection since 1981. The particularly strong reactions, followed by two rounds of revisions, makes understanding what lies behind public perceptions especially important to inform the ongoing debate within Ghana and the region. |
| Keywords: | Finance, |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18236&r=pay |
| By: | Alireza Fallah; Michael I. Jordan; Ali Makhdoumi; Azarakhsh Malekian |
| Abstract: | We study a three-layer data market comprising users (data owners), platforms, and a data buyer. Each user benefits from platform services in exchange for data, incurring privacy loss when their data, albeit noisily, is shared with the buyer. The user chooses platforms to share data with, while platforms decide on data noise levels and pricing before selling to the buyer. The buyer selects platforms to purchase data from. We model these interactions via a multi-stage game, focusing on the subgame Nash equilibrium. We find that when the buyer places a high value on user data (and platforms can command high prices), all platforms offer services to the user who joins and shares data with every platform. Conversely, when the buyer's valuation of user data is low, only large platforms with low service costs can afford to serve users. In this scenario, users exclusively join and share data with these low-cost platforms. Interestingly, increased competition benefits the buyer, not the user: as the number of platforms increases, the user utility does not improve while the buyer utility improves. However, increasing the competition improves the overall utilitarian welfare. Building on our analysis, we then study regulations to improve the user utility. We discover that banning data sharing maximizes user utility only when all platforms are low-cost. In mixed markets of high- and low-cost platforms, users prefer a minimum noise mandate over a sharing ban. Imposing this mandate on high-cost platforms and banning data sharing for low-cost ones further enhances user utility. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.09697&r=pay |
| By: | Maja Adena (WZB Berlin); Anselm Hager (HU Berlin) |
| Abstract: | Does online fundraising increase charitable giving? Using the Facebook advertising tool, we implemented a natural field experiment across Germany, randomly assigning almost 8, 000 postal codes to Save the Children fundraising videos or to a pure control. We studied changes in the donation revenue and frequency for Save the Children and other charities by postal code. Our geo-randomized design circumvented many difficulties inherent in studies based on click-through data, especially substitution and measurement issues. We found that (i) video fundraising increased donation revenue and frequency to Save the Children during the campaign and in the subsequent five weeks; (ii) the campaign was profitable for the fundraiser; and (iii) the effects were similar independent of video content and impression assignment strategy. However, we also found some crowding out of donations to other similar charities or projects. Finally, we demonstrated that click data may be an inappropriate proxy for donations and recommend that managers use careful experimental designs that can plausibly evaluate the effects of advertising on relevant outcomes. |
| Keywords: | charitable giving; field experiments; fundraising; social media; competition; |
| JEL: | C93 D64 D12 |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:493&r=pay |
| By: | Carmina-Elena Tolbaru (Pitesti University Center, Romania,) |
| Abstract: | Money laundry is a boosting phenomenon worldwide, affecting multiple domains of social life, and we need sustainable efforts to hinder the actions committed by offenders to hide the profits obtained from their offences. The complexity and magnitude of this phenomenon taking place at present is explained within the context of growth of technology, which opens new horizons concerning offence-related opportunities. Thus, offences such as tax evasion, financing terrorist organisations, drug trafficking, corruption, frauds, as well as any other illegal financial activities, are committed regarding the offence of money laundry, witnessing a form of organised cross-border criminality. Starting in 2021, the rate of illegal use of crypto currencies for the purpose of money laundry has registered a significant growth, which made the European Union establish a new regulation framework in the field of combating money laundry, extending the field of application of rules to crypto-assets transfers. This paper analyzes the growing global phenomenon of the use of crypto-assets for criminal purposes, examines the regulatory framework in the European Union, and provides practical recommendations that can help prevent and combat money laundering. |
| Keywords: | money laundry, offenders, organised crime, crypto-assets, European rules |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0312&r=pay |
| By: | damane, moeti; Ho, Sin-Yu |
| Abstract: | This study explores the development of financial inclusion in 37 Sub-Saharan Africa countries during 2005-2019. We first offer a conceptual definition and measurement of financial inclusion. We then discuss international initiatives and country-specific strategies to promote financial inclusion. We also document cross country trends in financial inclusion in the region and highlight general challenges before identifying possible solutions. We find that the extent of financial inclusion in the region varies across low-income, lower-middle-income, and upper-middle-income economies, with lower-middle-income countries having higher access to and use of financial services. Furthermore, although financial inclusion in the region has improved over time, partly due to legislative initiatives, challenges remain, including lack of coordination, gaps between financial deepening and inclusion, low financial literacy, and gender discrimination. We recommend the need for stakeholder-focused national financial inclusion strategies and policy reforms based on peer learning and transformation. |
| Keywords: | Sub-Saharan Africa; Financial inclusion; National financial inclusion strategies; Alliance for financial inclusion; Financial access survey. |
| JEL: | G0 G21 G28 |
| Date: | 2023–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120239&r=pay |
| By: | Alessandro Moro (Bank of Italy); Valerio Nispi Landi (Bank of Italy) |
| Abstract: | Using a DSGE model, we study the macroeconomic consequences of a foreign central bank digital currency (CBDC) being available to residents in a small open economy. We find that a gradual and permanent increase in domestic households' preference for a foreign CBDC leads to a structural reduction in economic activity, especially when the CBDC is designed to be similar to domestic deposits. Imposing capital flow management measures on outflows, relaxing macroprudential policy, or selling foreign reserves can help smooth the transition. A Taylor rule that targets PPI inflation is more effective in limiting the disruptive effects than CPI targeting or an exchange-rate peg. We also show that an economy with a large stock of foreign CBDC is better shielded from exogenous increases in the interest rate on foreign debt if the CBDC remuneration remains constant. |
| Keywords: | central bank digital currency, DSGE model, open economy macroeconomics, financial globalization |
| JEL: | E44 E58 F38 F41 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1416_23&r=pay |
| By: | Hao Chung; Tim Roughgarden; Elaine Shi |
| Abstract: | Users bid in a transaction fee mechanism (TFM) to get their transactions included and confirmed by a blockchain protocol. Roughgarden (EC'21) initiated the formal treatment of TFMs and proposed three requirements: user incentive compatibility (UIC), miner incentive compatibility (MIC), and a form of collusion-resilience called OCA-proofness. Ethereum's EIP-1559 mechanism satisfies all three properties simultaneously when there is no contention between transactions, but loses the UIC property when there are too many eligible transactions to fit in a single block. Chung and Shi (SODA'23) considered an alternative notion of collusion-resilience, called c-side-constract-proofness (c-SCP), and showed that, when there is contention between transactions, no TFM can satisfy UIC, MIC, and c-SCP for any c at least 1. OCA-proofness asserts that the users and a miner should not be able to "steal from the protocol" and is intuitively weaker than the c-SCP condition, which stipulates that a coalition of a miner and a subset of users should not be able to profit through strategic deviations (whether at the expense of the protocol or of the users outside the coalition). Our main result is the first proof that, when there is contention between transactions, no (possibly randomized) direct-revelation TFM satisfies UIC, MIC, and OCA-proofness. This result resolves the main open question in Roughgarden(EC'21). We also suggest several relaxations of the basic model that allow our impossibility result to be circumvented. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.09321&r=pay |
| By: | Yotam Gafni; Aviv Yaish |
| Abstract: | Decentralized cryptocurrencies are payment systems that rely on aligning the incentives of users and miners to operate correctly and offer a high quality of service to users. Recent literature studies the mechanism design problem of the auction serving as a cryptocurrency's transaction fee mechanism (TFM). We find that a non-myopic modelling of miners falls close to another well-known problem: that of online buffer management for packet switching. The main difference is that unlike packets which are of a fixed size throughout their lifetime, in a financial environment, user preferences (and therefore revenue extraction) may be time-dependent. We study the competitive ratio guarantees given a certain discount rate, and show how existing methods from packet scheduling, which we call "the undiscounted case", perform suboptimally in the more general discounted setting. Most notably, we find a novel, simple, memoryless, and optimal deterministic algorithm for the semi-myopic case, when the discount factor is up to ~0.770018. We also present a randomized algorithm that achieves better performance than the best possible deterministic algorithm, for any discount rate. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.08549&r=pay |
| By: | Damane, Moeti; Ho, Sin-Yu |
| Abstract: | The study explores the link between financial inclusion and financial stability in 37 Sub-Saharan African countries. Results of our panel data analysis show that financial inclusion positively impacts financial stability, especially in low-income countries with low levels of financial stability. Additionally, prior improvements in financial stability were found to have positive effects on present levels of financial stability. The study recommends policymakers to enhance cooperation, target excluded communities for financial inclusion, improve financial literacy, and cross-fertilize skills. |
| Keywords: | Sub-Saharan Africa; Financial Inclusion; Financial Stability; Dynamic Common Correlated Effects; Quantile Regression |
| JEL: | G0 G2 G21 G28 |
| Date: | 2024–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120238&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This study investigates the impact of terrorism on financial inclusion that is achieved through ATM penetration and bank branch expansion. Eight countries that are the most terrorized countries in the world were analysed using the panel fixed effect regression model and the generalized linear model. The results provide evidence that terrorism reduces the level of financial inclusion in countries experiencing terrorism, but the presence of strong legal institutions, accountability governance institutions and political stability governance institutions mitigate the adverse effect of terrorism on financial inclusion. |
| Keywords: | Terrorism, financial inclusion, access to finance, institutions, commercial bank branchs, ATM. |
| JEL: | G00 G21 I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120154&r=pay |
| By: | Imane Jed (LURIGOR - Laboratoire d’Universitaire de Recherche en Instrumentation et Gestion des Organisations - Université Mohammed Premier [Oujda]); Mohammed Amine Hafiane (LURIGOR - Laboratoire d’Universitaire de Recherche en Instrumentation et Gestion des Organisations - Université Mohammed Premier [Oujda]) |
| Abstract: | Dealing with dissatisfied customers has become a paramount concern for managers and business leaders, especially in today's technological revolution. However, online revenge behavior occurs when these customers post negative comments on social networks, discussion forums, review sites, blogs or other online platforms to express their frustration. This article therefore presents a systematic review of the literature on this behavior, in order to synthesize research in this field. A rigorous process resulted in a sample of 67 papers published in scientific journals between 2001 and 2023. It was identified through keyword searches in 9 databases. Our aim, after analyzing the conceptual link between customer dissatisfaction and online revenge behavior, is to shed further light on the different currents and starting assumptions on which researchers base their work, with a view to breaking down the various theoretical gaps and proposing avenues for future research. Analysis of the results shows that the majority of articles are relatively empirical, accounting for 61% of the sample, and that qualitative approaches predominate. |
| Abstract: | La gestion des clients insatisfaits est devenue une préoccupation primordiale pour les managers et dirigeants d'entreprises, notamment dans le contexte actuel marqué par la révolution technologique. Cependant, le comportement de vengeance en ligne se produit lorsque ces clients publient des commentaires négatifs sur les réseaux sociaux, les forums de discussion, les sites d'avis, les blogs ou d'autres plateformes en ligne pour exprimer leur frustration. Dès lors, cet article présente une revue systématique de littérature sur ce comportement, et ce, pour synthétiser la recherche dans ce domaine. Un processus rigoureux a abouti à un échantillon de 67 documents publiés dans des revues scientifiques entre 2001 et 2023. Il a été identifié à partir de recherche par mots clés dans 9 bases de données. Notre objectif, après avoir analysé le lien conceptuel l'insatisfaction des clients et le comportement de vengeance en ligne, est d'apporter un éclairage supplémentaire en mettant l'accent sur les différents courants ainsi que sur les postulats de départ sur lesquels les chercheurs fondent leurs travaux en vue de décliner les différents gaps théoriques et de proposer des pistes de recherche future. L'analyse des résultats obtenus indique que la majorité des articles sont relativement empiriques et représentent 61 % de l'échantillon et il semble y avoir une prédominance des approches qualitatives. |
| Keywords: | Dissatisfaction, negative emotions, online revenge, systematic literature review, exploratory qualitative study., Insatisfaction, émotions négatives, vengeance en ligne, revue systématique de littérature, étude qualitative exploratoire |
| Date: | 2024–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04451825&r=pay |
| By: | Hasan, Amena; Dowla, Asif-Ud; Tarannum, Ramisa |
| Abstract: | This research paper examines the impact of financial inclusion on the economic growth of developing nations, with a focus on Bangladesh. It reviews existing literature and develops hypotheses related to savings, capital mobilization, entrepreneurship, poverty alleviation, financial stability, and formalization of the economy. The paper presents a conceptual framework illustrating the pathways between financial inclusion and economic growth indicators. Data analysis shows a positive correlation between financial inclusion and GDP growth, as well as a link to poverty reduction. The paper concludes with policy implications for promoting financial inclusion in Bangladesh. |
| Keywords: | Financial inclusion, economic growth, Bangladesh, poverty alleviation, financial stability |
| JEL: | D8 E4 H3 M2 |
| Date: | 2024–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120213&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | The chapter explores the role of the central bank of Nigeria (CBN) in greening the financial system. I explore the ways in which the central bank could green the financial system. Some of the offered suggestions include disclosure requirements, establishing green finance labs, creating a green bank, and the use of differentiated cash reserve requirement based on environmental impact. The insights offered in this chapter are useful to bank supervisors and the monetary authority in understanding how financial and monetary decisions affect the environment. |
| Keywords: | Central bank, green finance, financial institutions, financial system, green bonds. |
| JEL: | E51 Q54 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120157&r=pay |
| By: | Christopher J. Waller |
| Date: | 2024–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:97770&r=pay |
| By: | CLAUDIO, ALEXANDRE APARECIDO |
| Abstract: | Não apenas estamos vivenciando o maior avanço tecnológico do milênio, como também estamos enfrentando a maior adaptação forçada de nosso cotidiano. Nossas relações comerciais dependem de entidades para garantir a transação de forma rápida e eficaz, e estamos altamente dependentes de agentes externos às nossas negociações. O presente artigo busca explorar a história da moeda, desde o escambo até a forma fiduciária que temos hoje, como forma de compreender o histórico de confiança desenvolvido em suas modificações. Além disso, busca-se, com base em fatos históricos, identificar as fragilidades que essa confiança possui, desde as crises vivenciadas até a construção de uma nova tecnologia capaz de descentralizar o sistema financeiro e suprir a falta de confiabilidade, as blockchains. O Bitcoin apresentou potencial como agente fiduciário, mas ainda assim, é altamente dependente de confiança mútua entre os agentes para sua aplicabilidade eficaz em grandes escalas. |
| Date: | 2024–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:vj45k&r=pay |
| By: | Sepp, Tim Florian; Israel, Karl-Friedrich; Treitz, Benjamin; Hartl, Tom |
| Abstract: | The resilience of the German banking system is studied on the semiaggregated level from 1968 to 2022. We distinguish between Large Banks, Regional Banks, Landesbanken, Sparkassen and Credit Unions and study their z-scores as a measure of resilience in response to the monetary policy stances of the Bundesbank and the ECB, respectively. We estimate two-way fixed effects panel regression models for both periods separately. The results suggest that monetary policy was more effective in enhancing resilience during the period of a national currency controlled by the Deutsche Bundesbank. The effect across bank types is much more heterogeneous after the inception of the ECB. In particular, decreasing resilience of Large Banks is associated with expansionary (un)conventional monetary policy in recent years. |
| Keywords: | Resilience, Monetary Policy, Banking, Financial Stability, Germany, Deutsche Bundesbank, ECB, Credit Union, Sparkasse |
| JEL: | E42 E52 G21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:leiwps:283608&r=pay |
| By: | Maryann Osadebamwen Asemota (National Research University Higher School of Economics) |
| Abstract: | Facial recognition technologies demonstrate a wide range of application fields. Among them is the use of facial recognition for recruitment. This has moved from traditional face scanning to actual emotion detection with the aim of identifying the right candidate for the respective job position. The purpose of this study was to show how facial recognition technology is applied for recruitment in Russia, as well as the benefits, risks, and challenges. The paper answers the question on how the technology has been applied in or adapted to the Russian environment as well as highlighting the corresponding benefits, risks and challenges. Russian employers usually make certain changes to use this facial recognition technology for recruitment including a reduced number of interview questions as compared to a physical interview, interpreting emotions differently and combining it with physical interviews. The benefits include the possibility of checking facial expressions in order to detect emotions, analysing emotions to get information on some personality traits, analysing candidates’ interests, creating candidates’ profiles, reactions to specific questions, checking for culture fit, and finally more objectivity. Finally, the paper argues that facial recognition technology for recruitment is still at an early developing phase in Russia. There is still a lot that can be done to ensure its proper usage for recruitment. |
| Keywords: | Facial Recognition Technology, Recruitment, Artificial Intelligence, E-HRM, Automated Interviews |
| JEL: | Z |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:126sti2023&r=pay |
| By: | Lo\"ic Mar\'echal; Alain Mermoud; Dimitri Percia David; Mathias Humbert |
| Abstract: | Early-stage firms play a significant role in driving innovation and creating new products and services, especially for cybersecurity. Therefore, evaluating their performance is crucial for investors and policymakers. This work presents a financial evaluation of early-stage firms' performance in 19 cybersecurity sectors using a private-equity dataset from 2010 to 2022 retrieved from Crunchbase. We observe firms, their primary and secondary activities, funding rounds, and pre and post-money valuations. We compare cybersecurity sectors regarding the amount raised over funding rounds and post-money valuations while inferring missing observations. We observe significant investor interest variations across categories, periods, and locations. In particular, we find the average capital raised (valuations) to range from USD 7.24 mln (USD 32.39 mln) for spam filtering to USD 45.46 mln (USD 447.22 mln) for the private cloud sector. Next, we assume a log process for returns computed from post-money valuations and estimate the expected returns, systematic and specific risks, and risk-adjusted returns of investments in early-stage firms belonging to cybersecurity sectors. Again, we observe substantial performance variations with annualized expected returns ranging from 9.72\% for privacy to 177.27\% for the blockchain sector. Finally, we show that overall, the cybersecurity industry performance is on par with previous results found in private equity. Our results shed light on the performance of cybersecurity investments and, thus, on investors' expectations about cybersecurity. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.04765&r=pay |
| By: | Paul Hurlet (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Ouassim Manout (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Azise Oumar Diallo (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles) |
| Abstract: | This work addresses the challenges of implementing shared e-scooter services (SSS) in urban areas. Despite their potential for sustainable mobility, issues like road safety and street cluttering persist. Policy regulation is crucial, and recent efforts have focused on free-floating e-scooter parking legislation. To assist decision-making, this paper proposes an agent-based framework to design SSS parking supply and evaluate its impact. The methodology is applied in Lyon, France, where the SSS is gaining more and more territory. The main outcomes show parking regulation can introduce conflicting objectives, with a reduction of SSS use due to an increase in the access and egress walking distance. |
| Keywords: | Shared e-Scooter Services (SSS), Micromobility, Regulation, Parking, Agent-Based Model (ABM), MATSim |
| Date: | 2024–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04422427&r=pay |
| By: | C. Sarai R. Avila |
| Abstract: | This study investigates the relationship between tweet sentiment across diverse categories: news, company opinions, CEO opinions, competitor opinions, and stock market behavior in the biotechnology sector, with a focus on understanding the impact of social media discourse on investor sentiment and decision-making processes. We analyzed historical stock market data for ten of the largest and most influential pharmaceutical companies alongside Twitter data related to COVID-19, vaccines, the companies, and their respective CEOs. Using VADER sentiment analysis, we examined the sentiment scores of tweets and assessed their relationships with stock market performance. We employed ARIMA (AutoRegressive Integrated Moving Average) and VAR (Vector AutoRegression) models to forecast stock market performance, incorporating sentiment covariates to improve predictions. Our findings revealed a complex interplay between tweet sentiment, news, biotech companies, their CEOs, and stock market performance, emphasizing the importance of considering diverse factors when modeling and predicting stock prices. This study provides valuable insights into the influence of social media on the financial sector and lays a foundation for future research aimed at refining stock price prediction models. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.03353&r=pay |