Current Issue : April-June Volume : 2025 Issue Number : 2 Articles : 5 Articles
This research investigates the relationship between Basel capital regulations, bank risk, and bank efficiency in the context of Pakistani and Indian commercial banks. This study examines the period from 2009 to 2022 and specifically analyses the impact of Basel III capital requirements on risk and efficiency. Quantitative methods are employed, utilising data from central bank websites and the BankScope database to construct a comprehensive sample of commercial banks in Pakistan and India. The system-generalised method of moments (GMM) estimation technique addresses potential endogeneity issues in the regression models. The findings shed light on the effectiveness of these regulations and provide insights for policymakers and regulators in both countries. The results indicate that Basel capital regulations have generally increased banks’ risk-taking behaviour in Pakistan and India. However, they have not improved the overall efficiency of the banking sector in either country. Bank efficiency declined during the study period, highlighting the limited effectiveness of Basel capital regulations in enhancing efficiency. Furthermore, the impact of these regulations on risk and efficiency varies between the two countries. In Pakistan, the regulations do not significantly affect bank efficiency, while in India, they decrease efficiency. Additionally, Basel III capital regulations do not significantly impact the risk taken by banks in either country. This study concludes by emphasising the need for alternative mechanisms or policies to improve the banking industry’s efficiency, as Basel capital regulations alone have proven ineffective. The findings offer valuable insights for central banks and regulators in assessing the relationship between capital regulations, risk, and efficiency and implementing appropriate measures to enhance the performance of the banking sector. This study recommends the following key points: the adoption of tailored regulatory approaches to address specific challenges, achieving an optimal balance between risk management and operational efficiency, enhancing the effectiveness of management roles, considering the influence of macroeconomic factors, and evaluating the implications of long-term policy development for sustainable progress. The present study adds to the prevalent literature on the impact of capital regulations on bank risk and efficiency nexus. This study focuses on Pakistan and India, which are two important developing nations. Moreover, another important contribution of this study lies in the effect of Basel III capital regulation on bank risk, as these capital regulations are different from other Basel capital requirements....
This paper discusses the effect of COVID-19 on the trade volume of the China and Türkiye trade, evaluating the effects of trade deficit and determining ways forward in period of and after the pandemic. The current theoretical framework involved a quantitative synthesis of past literature to conceptualize previous experiences of trade disruption and economic management during health crises. Using quantitative research descriptive and inferential data were collected through survey questionnaires from purposively targeted 50 industry. Surveys were analyzed in Statistical Package for Social Sciences (SPSS) using frequency tables, correlation coefficients, regression analysis and factor analysis. Findings showed that there were breakdowns of trade volumes and pinpointed fundamental important factors relating to trade imbalances such as digital trade, strategic economic adjustments. In accordance with the results presented in Table 3, COVID-19 is revealed as a major drag on Sino-Türkiye trade relations, and deepening trade deficits. The measures like improving digital trade enablers and diversifying economic measures were acknowledged as pivotal to mitigation. In this study, it is found that setting up effective plans for economic and trade cooperation for both the exporting and importing countries can avoid the harm of trade deficits for the domestic economy and also can increase the economic stability in the longer run....
Motivated by lingering incidence of relative economic underdevelopment of Nigerians, this research examined the influence of the growth of the Nigerian stock market on the improvement of individual Nigerians, beyond Gross Domestic Product (GDP) expansion. Employing annual time-series data from 2003- 2022, the research examined how specific stock market indicators such as market capitalization, liquidity, and volatility influenced comprehensive development metrics encompassing real GDP per capita and Human Development Index (HDI). Multiple regression analyses (OLS) were adopted as the estimation technique. The findings showed that market capitalization positively and significantly impacted both the real GDP per capita and HDI. However, the effects of stock market liquidity were varied, showcasing an insignificant impact on real GDP per capita yet a significant negative impact on human development. Stock market volatility, on the other hand, showed insignificant implications on both real GDP per capita and human development. Consequently, the study concluded that market capitalization and liquidity are the major drivers of economic development in Nigeria. Therefore, the study recommended that deliberate measures should be put in place to further open the market and make it more attractive to investors because of its ability to improve the well-being of the citizens with appropriate regulatory oversight to curb negative effects....
Investigating G20 countries in terms of their FDI’s potential to influence the economic growth leads to a clear overview of how these countries have an impact on the world’s economy. This reasearch proposes the Panel EGLS (Cross-section weights) regression models with fixed-effects, based on a database between 2000 and 2022 years, to highlight a positive effect of foreign direct investment on economic growth. Considering the meaningful variables from the economy, the evidence of the study finds out that the economic growth of G20 member countries could increase by 25% as a result of the positive and significant impact of foreign direct investment. The results of this research explain how G20 countries’ economies could be increased and as well how important it is to attract continuously foreign direct investment as a macroeconomic decision for the host countries....
This paper examines the stability of the demand for money in the United States by incorporating economic policy uncertainty (EPU) and monetary policy uncertainty (MPU) into the traditional money demand function. Using monthly data from 1987 to 2020, the study extends the literature by investigating both the symmetric and asymmetric effects of policy uncertainty on the real money aggregate (M2) for the first time. The analysis employs the Auto-Regressive Distributed Lag (ARDL) and Nonlinear Auto-Regressive Distributed Lag (NARDL) models, along with CUSUM and CUSUMSQ stability tests, to capture both short-run and long-run dynamics. Our findings reveal that while monetary policy uncertainty leads to an increase in money holdings in the short run, economic policy uncertainty reduces the demand for money as individuals shift to safer assets. In the long run, the effects of inflation and real effective exchange rates persist, while policy uncertainty shows no sustained impact. These results have significant implications for monetary policy formulation....
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