Asymmetric Impact of Financial Intermediary Development in Low- and High-Income Countries

Yang, Chi-Chun; Chang, Ya‐Kai

doi:10.3390/su12155960

Cited by 3 publications

(2 citation statements)

References 21 publications

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“…increase, the household expenditure also increases. This finding is in line with the theory put forward by Narayan & Sahminan (2018), and not in line with that put forward by Cheng & Hou (2020) and Yang & Chang (2020).…”

Section: Macroeconomic Influence On Islamic Fintech Growthsupporting

confidence: 72%

“…On the other hand, research by Yang & Chang (2020) found that there is an asymmetrical impact on the development of financial intermediaries on economic growth in various countries classified according to their per capita income, specifically, progress in finance is the driving force for the economy in developed countries. However, not in developing countries, similarly, Cheng & Hou (2020) found similar research results and recommended non-financial intermediary activities to drive economic growth.…”

Section: Introductionmentioning

confidence: 99%

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Islamic Fintech Growth Prospects in Accelerating MSMEs Growth: Evidence in Indonesia

Iqbāl¹,

Nadya²,

Saripudin³

2021

International Journal of Islamic Economics and Finance Studies

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Islamic fintech plays a role in encouraging the growth of MSMEs in Indonesia with its financing segment. The more Islamic fintech develops, the faster the growth of MSMEs in Indonesia will be. This study aims to identify macroeconomic factors such as gross domestic product (GDP), interest rates, and inflation in encouraging the growth of Islamic fintech. Using the OLS regression method, the results show that GDP has a positive effect on the growth of Islamic fintech, while interest rates have a negative effect on the growth of Islamic fintech.Improving macroeconomic conditions will encourage the growth of Islamic fintech which will ultimately contribute to the growth of MSMEs which are the main segment of Islamic fintech financing. In general, the growth of Islamic fintech assets in Indonesia tends to decline in line with the decline in GDP during the Covid-19 pandemic period. However, fintech assets can still grow, supported by declining interest rates and other factors such as the growth of the digital ecosystem in Indonesia.

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Section: Macroeconomic Influence On Islamic Fintech Growthsupporting

confidence: 72%

Section: Introductionmentioning

confidence: 99%

Islamic Fintech Growth Prospects in Accelerating MSMEs Growth: Evidence in Indonesia

Iqbāl¹,

Nadya²,

Saripudin³

2021

International Journal of Islamic Economics and Finance Studies

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Management of Innovations in Public Administration: Strategies to Prevent the Participation of Financial Intermediaries in Shadow Operations

Kuznyetsova

Tiutiunyk

Panimash

et al. 2022

MMI

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This article summarizes the arguments and counterarguments within the scientific discussion on improving public administration tools in the context of implementing innovative mechanisms for combating shadow financial transactions. The main purpose of this research is to formalize innovative strategies to counter the shadow withdrawal of capital with the participation of financial intermediaries. The systematization of scientific sources and approaches to solving the problem of the de-shadow economy proved that a characteristic feature of the functioning of the shadow market is the active participation of financial intermediaries in shadow operations. The information base is data from the World Bank and the Organization for Economic Cooperation and Development, the Group for the Development of Financial Measures to Combat Money Laundering, Transparency International, and the World Economic Forum. The period of the study is 2003-2021. The EU countries, Ukraine, Moldova, and Montenegro, as candidate countries for EU membership, were selected as the object of the study. This study applied the methods of bibliometric analysis to generalize the existing scientific work on the investigated issue, analysis of changes in the number of search changes on the problems of shadowing the economy, and clustering regions by the number of search queries on the shadow economy. Intellectual data analysis methods (one-dimensional branching CART and agglomeration methods) were used for clustering countries depending on the nature of the policy of countering the shadowing of the economy. Based on the results of the bibliometric analysis, theories describing the shadow economy, in particular: innovation theory, the theory of centralization, and institutional theory, were summarized. The article presents the results of cluster analysis, which proved the practicality of selecting three clusters of countries: cluster 1 – Cyprus, Czech Republic, Denmark, Finland, Greece, Ireland, Italy, Luxembourg, and Portugal; cluster 2 – Bulgaria, Croatia, Estonia, France, Malta, Netherlands, Spain, Sweden, Belgium, Greece, Austria, Hungary, and Slovak Republic, Slovenia; cluster 3 – Lithuania, Latvia, Romania, Poland, Moldova, Montenegro, and Ukraine. The study empirically confirmed and theoretically proved that the entire set of innovative scenarios for implementing economic de-shadowing policy could be divided into three types (evolutionary scenario, sequential transformation scenario, and forced scenario). The above scenarios depend on the speed of change in the indicators of developing the shadow economic sector and their sensitivity to the implemented measures.

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Modeling the dynamic patterns of banking and non-banking financial intermediaries’ performance

Bukhtiarova

Semenog

Mordan

et al. 2022

Banks and Bank Systems

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Nowadays, there are many preconditions and circumstances for conducting shadow schemes in the financial market. Therefore, the level of risk of participation of bank and non-bank financial intermediaries in such schemes is assessed as high. The lack of a practical methodology for assessing the development trajectory of financial intermediaries raises the question of the need for preventive control and quality modeling of their growth dynamics. The study aims to identify and formalize the patterns of development paths of banking and non-banking financial intermediaries based on the Harrington desirability function, which will be used to identify risk patterns as indicative patterns of financial intermediaries’ participation in shadow schemes. The sample includes 13 banking institutions, 3 credit unions, 3 pawnshops, 3 insurance companies, and 3 financial companies. The obtained results showed the relationship between the financial intermediary risk level in terms of its participation in shadow schemes and the phases of the economic cycle as a catalyst for the economic dynamics of the formal and informal economy. Thus, in 2012–2015, most financial intermediaries were in the zone of most significant risk, especially banks, characterized by economic, social, and political instability. Today, banks are in the group with a controlled level of risk of participation in scheme operations. Over the years analyzed, a stable neutral level of risk of participation in shadow schemes was inherent in most non-bank financial institutions. They were less sensitive than banks to the phases of the economic cycle. AcknowledgmentAlina Bukhtiarova and Yevgeniya Mordan gratefully acknowledge financial support from the Ministry of Education and Science of Ukraine (0120U100473, 0121U100469).

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Asymmetric Impact of Financial Intermediary Development in Low- and High-Income Countries

Cited by 3 publications

References 21 publications

Islamic Fintech Growth Prospects in Accelerating MSMEs Growth: Evidence in Indonesia

Islamic Fintech Growth Prospects in Accelerating MSMEs Growth: Evidence in Indonesia

Management of Innovations in Public Administration: Strategies to Prevent the Participation of Financial Intermediaries in Shadow Operations

Modeling the dynamic patterns of banking and non-banking financial intermediaries’ performance

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