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on Payment Systems and Financial Technology |
| By: | Magin, Jana; Neyer, Ulrike; Stevens, Alexandra |
| JEL: | E41 E42 C92 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325448 |
| By: | Peter Bofinger |
| Abstract: | The paper discusses the functions and the potential of stablecoins as an innovative payment system: Stablecoins constitute a new payment object which can be used for a direct exchange on the infrastructures provided by blockchains and crypto exchanges. For the discussion of stablecoins It is important to distinguish between bond-based and bank-based stablecoins: While the former use bank deposits as collateral, the latter use short-term treasuries. Bond-based stablecoins have an attractive business model. They enable direct international.payments, i.e. without an intermediary, based on a safe transaction asset. Market dynamics reveal significant network effects: the system is characterized by the US dollar as the dominant currency denomination, a duopoly of two issuers, and a small number of blockchains. In the last few years, the dominant issuers have demonstrated resilience even during periods of economic shocks. The macroeconomic effects of bank-based stablecoins are limited, since they cannot create loans. However, bond-based stablecoins can create money by purchasing government bonds. While bank-based stablecoins create financial stability risks by interconnecting banks and stablecoin issuers, bond-based stablecoins do not present this risk. The Digital Euro is not an alternative to stablecoins: Its use is limited to the euro area, it is designed for retail payments and it only allows asset holdings for private households. |
| Keywords: | crypto currencies, blockchain, stablecoins. Digital Euro, cyrpto exchanges |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:studie:100-2025 |
| By: | de Brauw, Alan; Gilligan, Daniel O.; Herskowitz, Sylvan; Roy, Shalini |
| Abstract: | Mobile money can be a vehicle for improving financial access, particularly among disadvantaged populations. For mobile money systems to play this role, though, members of disadvantaged groups must both enroll in and begin to use mobile money systems. In this paper, we describe a randomized trial conducted in collaboration with a bank in Somali region, Ethiopia, that attempted to stimulate use among recent mobile money enrollees in areas near refugee camps. We provide one group with a small transfer to their mobile money account and another group is told they will receive a small transfer if they first make three transactions of any type within a promotional period. The unconditional transfer induces a 9.3 percentage point increase in customers making at least one transaction, while the conditional transfer has no significant effect. The effect is larger among men, but there is evidence that it also induces use among women. |
| Keywords: | access to finance; refugees; gender; digital technology; currencies; finance; mobile phones; Ethiopia; Eastern Africa; Africa |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:162765 |
| By: | Pablo D. Azar; Francesca Carapella; JP Perez-Sangimino; Nathan Swem; Alexandros Vardoulakis |
| Abstract: | In a previous post, we provided background information about the emergence of tokenized investment funds and their use cases. These use cases are currently limited to the digital asset ecosystem. However, the recent approval of cryptocurrency exchange-traded funds (ETFs) and the passage of the GENIUS Act raise concerns about the impact of these tokenized investment fund to the broader financial system. In this post, we assess this impact by considering three economic mechanisms based in part on market participants’ investment strategies and liquidity needs. They include: liquidity transformation, interconnections between the digital asset and the traditional financial system, and transaction settlement. Through these mechanisms, tokenization of investment funds can bring about financial stability benefits in the form of reduced redemption pressures and additional sources of liquidity for fund issuances, but may also increase interconnectedness between the traditional financial system and digital asset ecosystem, thereby amplifying existing financial stability risks. |
| Keywords: | cryptocurrency; blockchain; money markets |
| JEL: | G0 E0 |
| Date: | 2025–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:101778 |
| By: | Yuko Tamura (Institute for Monetary and Economic Studies, Bank of Japan (E-mail: yuuko.tamura@boj.or.jp)); Masayuki Abe (Social Informatics Laboratories, NTT Corporation (E-mail: msyk.abe@ntt.com)); Tetsuya Okuda (Social Informatics Laboratories, NTT Corporation); Hiromasa Tsugawa (Social Informatics Laboratories, NTT Corporation); Toshiyuki Miyazawa (Social Informatics Laboratories, NTT Corporation (currently, Service Innovation Laboratory Group, NTT Corporation)); Kazuki Yamamura (Social Informatics Laboratories, NTT Corporation); Yoshiharu Akahane (Third Financial Sector, NTT DATA Corporation (E-mail: yoshiharu.akahane@nttdata.com)); Tomoki Taguchi (Third Financial Sector, NTT DATA Corporation); Yuto Hirakuri (Third Financial Sector, NTT DATA Corporation); Hiroto Masuda (Third Financial Sector, NTT DATA Corporation); Kento Yamada (Third Financial Sector, NTT DATA Corporation) |
| Abstract: | This paper explores a payment system that enables transactions without relying on a ledger or intermediary service providers, examining it from a technical perspective. The system facilitates payments through the transmission and receipt of electronic data, analogous to physical cash. In the field of cryptography, this concept has been studied under the name "electronic cash." While several demonstration experiments were conducted in the 1990s, it is presumed that the technology at the time could not ensure sufficient usability. In this paper, we revisit the concept of electronic cash in light of technological advancements and evolving societal needs. Additionally, we conduct practical verification using smartphones to demonstrate that current technological standards can offer electronic cash systems with high usability. From a technical standpoint, we propose methods to further enhance usability and privacy for electronic cash schemes. These include mechanisms for splitting and aggregating electronic cash into arbitrary amounts, as well as schemes that make it difficult to link electronic cash transactions made by the same user. It should be noted that this paper focuses solely on the technical aspects of electronic cash and does not examine the feasibility of its legal, institutional, or practical implementation in society. |
| Keywords: | digital payments, electronic cash, e-money, privacy protection, smartphone payments |
| JEL: | L86 L96 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ime:imedps:25-e-07 |
| By: | Arvai, Kai; Coimbra, Nuno |
| JEL: | E42 F02 F33 N10 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325376 |
| By: | Klonner, Stefan; Xie, Min |
| JEL: | O16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325440 |
| By: | Balana, Bedru; Olanrewaju, Opeyemi |
| Abstract: | This paper examines the effects of financial inclusion on adoption and intensity of use of agricultural inputs and household welfare indicators using data from the nationally representative Nigerian LSMS wave-3 (2015/2016) survey. For this, we constructed a financial inclusion index from four formal financial services access indicators (bank account, access to credit, insurance coverage, and digital transaction) using multiple correspondence analysis (MCA). We used Cragg’s two-step hurdle, instrumental variables for binary response variables, and a Generalized Method of Moments (GMM) models in the econometric analysis. Results show that households with access to formal financial services are more likely to adopt agricultural inputs and to apply these more intensively. These same households are less likely to experience severe food insecurity and are more likely to consume diverse food items. We also find that these effects are less for female farmers regardless of formal financial inclusion, suggesting that they may bear more non-financial constraints than their male counterparts. The results suggest a need for targeted interventions to increase access to formal financial services of farm households and gender-responsive interventions to address the differential constraints women farmers face. |
| Keywords: | farm inputs; financial inclusion; food security; households; inorganic fertilizers; seeds; Nigeria; Africa; Western Africa |
| Date: | 2024–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:162588 |
| By: | Popoola, Osuolale Peter; Fakotun, Musa Adesoji |
| Keywords: | 5G Technology, Internet of Things, Smart Libraries, Information Access, Digital Era |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:327153 |
| By: | Abdul Ghaffar (BZU - Bahauddin Zakariya University); Muhammad Asif (Ghazi University); Areeba Ejaz (Ghazi University); Kashif Raza (Ghazi University) |
| Abstract: | Digital financial inclusion (DFI) initiatives have transformed the economy and environment by providing previously underbanked regions with enhanced access to banking, payment processing, and other financial services. This study analyses the correlations among DFI, GDP growth, and ecological sustainability, using the rapid expansion of digital finance in China as a case study. The research used econometric models to examine the impact of DFI on GDP growth and CO₂ emissions, including factors such as renewable energy adoption, industrial efficiency, and trade patterns. This purpose employs panel data from many national and international sources. The results demonstrate that reduced carbon intensity and improved economic inclusion correlate with heightened DFI penetration. Improved resource allocation, less travel for transactions, and increased green investment flows contribute to lower carbon intensity. The results suggest that DFI may fulfil climate action goals while promoting equitable growth, benefiting policymakers aiming to include financial innovation in sustainable development plans. |
| Keywords: | Digital Financial Inclusion, Sustainable Development, Digital Governance, China Natural Resources, China, Natural Resources, Natural Resources Digital Financial Inclusion Sustainable Development Digital Governance China Natural Resources Digital Financial Inclusion Sustainable Development Digital Governance China |
| Date: | 2025–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05236350 |
| By: | Pablo D. Azar; Francesca Carapella; JP Perez-Sangimino; Nathan Swem; Alexandros Vardoulakis |
| Abstract: | A blockchain is a distributed database where independent computers across the world maintain identical copies of a transaction record, updating it only when the network reaches consensus on new transactions—making the history transparent and extraordinarily difficult to alter. Historically, bonds have traded almost entirely in over-the-counter (OTC) markets, while equities and money market fund shares have largely settled through centralized infrastructures such as stock exchanges and central securities depositories. In both settings, each institution maintains its own records, and post-trade steps like confirmation, clearing, and settlement require multiple intermediaries and repeated reconciliation. |
| Keywords: | tokenized money; market funds; financial stability |
| JEL: | G0 E0 |
| Date: | 2025–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:101777 |
| By: | Krishna Dasaratha (Boston University); Kevin He (University of Pennsylvania) |
| Abstract: | We study learning on social media with an equilibrium model of users interacting with shared news stories. Rational users arrive sequentially, observe an original story (i.e., a private signal) and a sample of predecessors’ stories in a news feed, then decide which stories to share. The observed sample of stories is jointly determined by predecessors’ sharing behavior and the sampling algorithm generating news feeds. We focus on how often this algorithm selects more viral (i.e., widely shared) stories. Showing users viral stories can increase information aggregation, but it can also generate steady states where most shared stories are wrong. These misleading steady states self-perpetuate, as users who observe wrong stories develop wrong beliefs, and thus rationally continue to share them. Finally, we describe several consequences for platform design and robustness. |
| Keywords: | social learning, selective equilibrium sharing, social media, platform design, endogenous virality |
| Date: | 2025–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:pen:papers:25-021 |
| By: | Gaul, Johannes; Schrader, Pascal |
| Abstract: | We study the relationship between investors' social media activity and earnings announcement returns. To distinguish between information contained in peer-to-peer interaction and user-posted content, we analyze conversation networks on Reddit using centrality metrics from network science and classify user sentiment with large language models. We show that pre-announcement sentiment is positively associated with short-term cumulative abnormal returns only if it does not spark pre-announcement controversy. If pre-announcement controversy arises, we document a negative association. Our findings present a more nuanced view on the wisdom of crowds hypothesis, highlighting that peer-to-peer interaction on social media exhibits a pattern of normalization, and thus contains informational value beyond content. |
| Keywords: | Information Processing, Reddit Wallstreet Bets, Wisdom of Crowds, Conversation Networks, Large Language Models, Eigenvector Centrality, High-frequency Data |
| JEL: | G12 G14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:327108 |
| By: | López Abenia, Marta |
| Abstract: | En la actualidad, las redes sociales han adquirido una gran relevancia en el ámbito empresarial, permitiendo a las pequeñas y medianas empresas (pymes) conectar con su audiencia, promocionar sus productos y fortalecer su presencia en el mercado. A raíz de la crisis del COVID-19, el emprendimiento digital ha experimentado un crecimiento significativo, consolidándose como una vía clave para la generación de negocio. El objetivo de este estudio es analizar el impacto del uso de redes sociales en el emprendimiento, utilizando datos de la encuesta Future of Business Survey de Facebook, que recoge información sobre cómo las pymes utilizan plataformas como Facebook, Instagram y WhatsApp para desarrollar sus actividades. A través de un análisis econométrico de datos agregados por país, se estudiarán las variables clave que determinan el éxito de los negocios en redes sociales. |
| Keywords: | Emprendimiento, redes sociales, emprendedor |
| JEL: | M2 M21 |
| Date: | 2025–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126253 |
| By: | Abdelaziz, Fatma; Tarek, Abdallah |
| Abstract: | The rapid adoption of mobile phones in agricultural and production systems provides an avenue to unlock the potential of digital innovations to transform smallholder agriculture in low- and middle-income countries. Previous research highlights how the adoption of digital tools can enhance farmers' profits and marketing outcomes by improving market efficiency through better supply and demand matching. Other research similarly emphasizes how digital innovations can facilitate agricultural transformation and transform the functioning of markets by addressing multiple forms of institutional and market failures. However, despite these advantages and the availability of numerous digital tools for agriculture, their adoption remains low and uneven across Africa, where agricultural markets are still underdeveloped. Smallholder farmers in developing countries, including Egypt, face challenges in accessing essential information, which limits their ability to leverage market opportunities and maximize profitability. Given the limited understanding of the primary challenges hindering Egyptian farmers' adoption of digital technologies and the strategies needed to enhance their access to these innovations, this paper aims to utilize an extensive survey of smallholder farmers in Egypt to: (i) examine the constraints to adoption of digital agricultural tools in Egypt; and (ii) assess the impact of farmer training programs on the awareness and adoption of digital tools, using the Mahsoly mobile application and its new price monitoring tool as a case study. |
| Keywords: | digital innovation; farming systems; mobile phones; smallholders; Egypt; Africa; Eastern Africa; Northern Africa |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:menawp:152510 |
| By: | Alessandro Gioffré (University of Florence); Gabriele Camera (Economic Science Institute, Chapman University) |
| Abstract: | Tokenization of assets has multiple implications for the operation of financial markets, among which are mitigating trade frictions and improving the interconnectedness of financial firms. This feature—if not properly managed—can propagate shocks more widely as compared to a traditional system. We study this double-edged aspect of tokenization using a matching model that makes explicit how firms are exposed to counterparty risk. We propose a way to manage this increased risk, through Financial Transactions Limiters, which exploit the technical advantages of tokenization in monitoring financial transactions of individual firms. We numerically analyze the possible social welfare consequences of tokenization, in both the short and long run, based on the economy’s fundamentals. |
| Keywords: | matching models, fintech, contagion |
| JEL: | C6 D6 E5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:chu:wpaper:25-08 |
| By: | Viktors Stebunovs |
| Abstract: | A cornerstone of the law-and-finance literature is that stronger institutions reduce financial intermediation costs. Using global data on cross-border payment costs, I show this relationship can reverse in heavily regulated sectors. Anti-money laundering risks have larger cost effects in advanced economies with strong enforcement than in developing countries with weak enforcement, despite the former having lower underlying risks. This counterintuitive pattern reflects strong institutions operating through two channels: Directly reducing costs through risk mitigation and forcing risk-based pricing that eliminates cross-subsidization. The net results demonstrate that traditional studies can miss heterogeneity by not controlling for risk levels: Strong institutions benefit low-risk jurisdictions but force high-risk ones to pay higher costs for their risk profiles. Policy implications favor improving enforcement and lowering risks rather than treating these as substitutes. The findings have implications for emerging payment rails, such as regulated payment stablecoins, which face similar AML requirements. |
| Keywords: | Cross-border payments; Anti-money laundering; Institutional quality; Law enforcement; Compliance costs; Competitive forces; Risk-based pricing; Regulated payment stablecoins |
| JEL: | F20 F24 F30 G20 G21 G23 G28 G50 |
| Date: | 2025–09–25 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1422 |
| By: | Nicole Hentschel (University of St.Gallen and Swiss National Bank) |
| Abstract: | Despite the long-termtrend away from cash and the widespread adoption and acceptance of payment cards, many people still carry considerable amounts of cash. In a preregistered study, I examine whether risk attitudes can explain consumers’ persistent cash holdings. To self-insure against the possibility of being unable to pay by card, risk-averse consumers are expected to hold cash in larger amounts. Moreover, consumers who overweight the small probability of card non-acceptance and those who prefer early resolution of uncertainty are also predicted to carry more cash. I test these predictions using data from the RAND American Life Panel (N = 989) and on experimental preference data from Swiss consumers (N = 1’666). 86% of U.S. and 95% of Swiss individuals carry cash in their wallets, with an average of USD 64 and CHF 94, respectively. Neither risk aversion, probability weighting, nor a preference for early resolution of uncertainty are consistently related to cash holdings. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:szg:worpap:2504 |
| By: | Ana-Maria Florescu (CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon); Claudio Vitari (CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique); Serge Amabile (CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon) |
| Abstract: | As digital transformation accelerates, cybersecurity has emerged as a critical concern for organizations worldwide, driven by escalating cyber threats, geopolitical tensions, and increasingly complex supply chains. Effective inter-organizational collaboration in cybersecurity governance relies on trust, which influences information sharing, coordinated threat responses, and risk-management. This study explores how formal and informal rules shape trust dynamics in inter-organizational cybersecurity governance, using Ostrom's Institutional Analysis and Development (IAD) framework. A grounded theory approach is employed through a systematic literature review and semi-structured interviews. Preliminary findings highlight key barriers to trust-building, including partnership failures, disinformation, and geopolitical trust deficits, while identifying potential solutions such as blockchain, AI-driven security models, and structured cybersecurity disclosure frameworks. Trust also requires governance frameworks that balance compliance with collaboration. By advancing theoretical and practical insights, this research informs policymakers, cybersecurity leaders, and IS scholars on designing trust-centric cybersecurity ecosystems in an era of global digital uncertainty. |
| Keywords: | trust, Cybersecurity governance trust inter-organizational collaboration Ostrom blockchain, Cybersecurity governance, inter-organizational collaboration, Ostrom, blockchain |
| Date: | 2025–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05251774 |
| By: | Colin Weiss |
| Abstract: | I examine how governments have managed their holdings of gold and dollar reserves in recent decades, a period when gold’s share of aggregate international reserves rose and the dollar’s share fell. Using data on central banks’ reserve currency composition and official sector purchases of U.S. assets, I argue that gold reserve accumulation is generally not associated with de-dollarization of international reserves at the country level, except in a few prominent cases. Instead, gold purchases are more consistent with most countries pursuing a modest diversification of international reserves that does not solely target a reduced dollar share. My evidence suggests that this characterization also applies to gold reserve accumulation in 2022 and 2023. Finally, I show that, while gold’s importance as a store of value for the official sector has grown since 2000, its use as a unit of account and a medium of exchange remains limited. |
| Keywords: | International Reserves; Gold; Dollar |
| JEL: | F30 F31 F33 |
| Date: | 2025–09–05 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1420 |
| By: | María José Gómez Yubero, Bárbara Gullón Ojesto |
| Abstract: | This paper analyses the potential of resolution technology (ResTech) as a strategic tool for improving the planning, execution, and monitoring of central counterparty (CCP) resolution processes. Building on the existing technology ecosystem in the RegTech and SupTech fields, the paper envisages a natural extension of these technologies to critical resolution functions in a context of increasing digitalisation and finnancial interconnectedness. Through a review of literature and institutional experiences, we identify the most relevant enabling technologies (such as AI, NLP, DLT and digital simulators), their potential applications in the preventive and executive phases, and the associated risks. The study highlights the need to strengthen institutional capacities, develop secure enviroments for experiementation, and foster effective international - particularly European - cooperation through bodies such as the Financial Stability Board (FSB) and the European Securities and Markets Authority (ESMA). Finally, the paper proposes action plans to progressively integrate ResTech into operational and regulatory frameworks with the aim of establishing it as a key pillar for the effective, legtimate and appropriate resolution of the challenges in the digital financial system. |
| Keywords: | Restech, Central Counterparties, Emerging Technologies, Artificial Intelligence, Quantum computing, sistemic crises, Financial Stability, Cyber Resilience, Data Governance, RegTech, Suptech |
| JEL: | O31 F55 C80 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cnv:wpaper:dt_93en |
| By: | Bojidara Doseva; Catherine Dehon; Antonio Estache |
| Date: | 2025–09–25 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/394559 |
| By: | Victor Le Coz (LadHyX - Laboratoire d'hydrodynamique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, MICS - Mathématiques et Informatique pour la Complexité et les Systèmes - CentraleSupélec - Université Paris-Saclay); Michael Benzaquen (LadHyX - Laboratoire d'hydrodynamique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, CFM - Capital Fund Management); Damien Challet (MICS - Mathématiques et Informatique pour la Complexité et les Systèmes - CentraleSupélec - Université Paris-Saclay, FiQuant - Chaire de finance quantitative - MICS - Mathématiques et Informatique pour la Complexité et les Systèmes - CentraleSupélec - Université Paris-Saclay) |
| Abstract: | We propose a minimal model of the secured interbank network able to shed light on recent money markets puzzles. We find that excess liquidity emerges due to the interactions between the reserves and liquidity ratio constraints; the appearance of evergreen repurchase agreements and collateral re-use emerges as a simple answer to banks' counterparty risk and liquidity ratio regulation. In line with prevailing theories, re-use increases with collateral scarcity. In our agent-based model, banks create money endogenously to meet the funding requests of economic agents. The latter generate payment shocks to the banking system by reallocating their deposits. Banks absorbs these shocks thanks to repurchase agreements, while respecting reserves, liquidity, and leverage constraints. The resulting network is denser and more robust to stress scenarios than an unsecured one; in addition, the stable bank trading relationships network exhibits a core-periphery structure. Finally, we show how this model can be used as a tool for stress testing and monetary policy design. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05273328 |
| By: | Linda S. Goldberg; Samantha Hirschhorn |
| Abstract: | Global factors, like monetary policy rates from advanced economies and risk conditions, drive fluctuations in volumes of international capital flows and put pressure on exchange rates. The components of international capital flows that are described as global liquidity—consisting of cross-border bank lending and financing of issuance of international debt securities—have sensitivities to risk conditions that have evolved considerably over time. This risk sensitivity has been driven, in part, by the composition and business models of the financial institutions involved in funding. In this post, we ask whether these same features have led to changes in the pressures on currency values as risk conditions evolve. Using the Goldberg and Krogstrup (2023) Exchange Market Pressure (EMP) country indices, we show that the features of financial institutions in the source countries for international capital do influence how destination countries experience currency pressures when risk conditions change. Better shock-absorbing capacity in financial institutions moderates the pressures toward depreciation of currencies during adverse global risk events. |
| Keywords: | currency; depreciation; Foreign exchange market; risk; bank capital |
| JEL: | F3 |
| Date: | 2025–09–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:101760 |
| By: | Robert M. Adams; Shane M. Sherlund |
| Abstract: | This study examines changes in household and employment access to bank branches in the United States from 2014 to 2024, calculating distances with highly granular census block-level data. We develop a continuous measure of bank branch access that accounts for population and employment density, implicitly accounting for varying travel times within different urban and rural areas. Our findings indicate that despite a 19-percent decline in bank branches over the decade, average distances to the nearest branch increased only modestly—by 0.02 to 0.28 miles depending on area density. We find some disparities in branch access across racial and income groups, but these gaps did not widen substantially over the 2014-2024 period. Overall, our results suggest that while some localized reductions in branch access occurred, the significant reduction in the number of branches did not result in significant decreases in access to local bank branches for households or businesses. |
| Keywords: | Banking; Branch Networks; Geospatial Analysis; Banking Deserts |
| JEL: | G21 R32 |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-86 |
| By: | Mosler, Martin; Schaltegger, Christoph; Mair, Lukas; Brandt, Przemyslaw |
| JEL: | E31 M41 N14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325423 |