Current Issue : April-June Volume : 2025 Issue Number : 2 Articles : 5 Articles
Foreign direct investment (FDI) is essential for enhancing economic resilience and promoting sustainable development. However, inefficiencies in financial connectivity and capital allocation have hindered the facilitation of FDI. Bank linkages between countries in the global sectors of multinational enterprises (MNEs) offer potential solutions to these challenges. In this paper, we focus on whether sustainable FDI can benefit from consolidating bank linkages, which are measured for each pair of countries in each year as the number of bank pairs in both countries that are connected through cross-border syndicated lending. Using the gravity model, we provide empirical evidence based on cross-border data to support the following conclusions: (1) Bank linkages can sustainably enhance the host country’s attractiveness to FDI through information, external financing, and international financial services channels. (2) This positive effect is pronounced in host countries with lower financial development, weaker institution quality, and higher investment risk while remaining insignificant for OECD countries. (3) Bank linkages exhibit a lagged impact on FDI, but newly established bank linkages are more conducive to inward FDI than those established earlier. In this paper, we offer some policy implications for emerging economies and suggest that emerging economies should continue to deepen their financial openness and strengthen international bank links through various means to attract more inward FDI....
The study investigated the moderating effect of bank size on the relationship between income diversification and asset diversification on bank stability in the context of commercial banks in Bangladesh. A total of 180 observations from 36 listed banks were collected, all listed on the Dhaka Stock Exchange. The sample period of this study spanned from 2018 to 2022. The findings revealed that both income and asset diversification had a positive impact on bank stability. Bank size moderated the relationship between income and asset diversification with bank stability. Thus, increasing the size of banks reduced the benefits of income and asset diversification on bank stability, suggesting that larger banks may not gain much from diversification. These results have implications for policymakers and bank managers. They should employ diversification strategies tailored to bank size so that banks will benefit from diversification in the long run. This study is one of the few that uniquely reveals a negative moderating role of bank size in diversification (income and asset) and stability relationships....
The concept of “internal marketing” has attracted significant attention from researchers. Despite extensive studies on the topic, it remains partially understood, as while attention to external customers is critical, the importance of internal customers—an organization's employees—cannot be overlooked. The development of internal marketing within the organization plays a crucial role in gaining a competitive edge in the market. The goal of internal marketing is to engage employees by prioritizing internal initiatives that need to be developed, sustained, and promoted. This fosters business growth and enhances the company’s competitiveness. Different studies show that employees' positive perceptions of internal marketing practices lead to beneficial outcomes. Analysing the components of internal marketing can provide insights into how strategies can be customized for different regions and industries, ultimately leading to more effective internal marketing approaches. Literature reviews indicate that internal marketing serves as a human resource management tool that fosters employee satisfaction and alignment with external customer needs. The authors closely examine the contemporary role of internal marketing strategies and their implementation in a Lithuanian financial institution through an enhanced framework of marketing elements and thus throwing some light on how these strategies impact employee engagement. Empirical research, based on structured interviews within the institution, reveals that the internal pricing element is the lowest rated, while other elements need further strengthening due to differing opinions from managers and employees. Enhancing internal marketing strategies can significantly boost employee engagement, satisfaction, and performance, which in turn positively affects external customer satisfaction....
Inflation targeting, a monetary policy framework, is criticized for its narrow mandate of safeguarding price stability only and neglecting other equally important macroeconomic variables. This negligence, according to the critics, might have had a role in the unprecedented, real business-cycle fluctuations observed in the past. Hence, they advocate for mandating central banks with equally emphasizing employment and output growth along with inflation. Theoretical claims aside, the literature does not present any empirical evidence on how to determine whether a central bank adheres to a single or a dual mandate. This study is aimed at filling this gap by analyzing the reaction functions of various central banks, including the ones targeting inflation and the ones with no specific targets. Using the panel data from OECD countries, our findings question the prevalent theoretical misunderstanding in the literature: the central banks with no specific targets (the dual-mandate monetary policy regimes) appear to be targeting the rate of inflation only, whereas the central banks that are thought to have a single-mandate seem to be targeting inflation, output growth, and unemployment. These results are significant, both statistically and economically, and question the baseless criticism of the inflation-targeting regime for neglecting employment and output growth....
Green credits are one of the alternative bank loans to the traditional sector. In addition, this green credit supports sustainability and environmental issues. This paper analyzes the influence of green credits on bank profits and stability in Indonesia. This study analyzed banks in Indonesia that provided green credits. Of 140 banks, only 35 banks disbursed green credits starting in 2019. Our study examined all banks providing green credit from 2019 to 2022 using annual data. The results of the study showed that green credits have a positive effect on profits, but green credits have no effect on bank stability. Small banks benefit from green credits in encouraging profitability. In addition, the profitability and stability of banks in Indonesia are greatly influenced by strong bank fundamentals such as capital and efficiency. This study has important implications in both theoretical and practical aspects. Because green credit supports profitability, the bank must diversify the loans in both the traditional sector as well as new sectors that are related to environmental issues and development sustainability following the theory of loan diversification. For practical implication, the Indonesian Financial Service Authority as a policymaker requires each bank to provide financing related to green credits....
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