Correlation Analysis of Macroeconomic and Banking System Indicators

Ларионова, Н. И.; Varlamova, Julia

doi:10.1016/s2212-5671(14)00724-2

Cited by 5 publications

(4 citation statements)

References 4 publications

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“…Third, IR has also shown a significant adverse effect on bank deposits, positive on speculation in the FEM, and an insignificant impact on the stock market as Chen ( 2009) and Toraman and Başarir (2014) got the same result the insignificant effect of IR on the stock market. IR has shown an adverse effect in some countries and a positive impact in some more economies on bank deposits based on the study of Larionova and Varlamova (2014). The negative impact of IR on bank deposits has confirmed our discussion in Sect.…”

Section: Discussionsupporting

confidence: 82%

Financial intermediaries and speculation in the foreign exchange market: the role of monetary policy in Iran’s economy

Sadeghi

Marzban

Samadi

et al. 2022

Economic Structures

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Given the high fluctuations of the general price level, the importance of investment, and accessing sufficient financial resources, we examine the effects of monetary policy on the nominal (Inflation) and real (Investment) sectors of a developing economy, like Iran, through the channel of the relationship between bank deposits, stock market, and speculation in the foreign exchange market (FEM). For this purpose, due to regime switching in Iran’s economy, the non-linear relation between the variables has been investigated by applying Markov switching models and annual data of 1988–2018. The results show that the financial intermediaries (FIs) have not had a complementary relationship in both bear and bull market and high and low banks deposits regimes. Both FIs have negatively impacted speculation in the FEM in high and low exchange rates difference regimes. The difference between official and unofficial exchange rates negatively impacted the FIs in bear market and low banks deposits regimes; on the contrary, a positive effect in a bull market and high bank deposits. The effects of both FIs on investment have been positive in high and low investment regimes and negative on inflation rates in high and very high inflation regimes. In comparison, the impact of speculation in the FEM has been negative on investment and positive on inflation. Therefore, in the event of the lack of limitations regarding using interest rate (IR) and the policy of exchange rate unification, the central bank would be able to affect the nominal and real sectors of the economy suitably through the channels of the FIs and the FEM.

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Section: Discussionsupporting

confidence: 82%

Financial intermediaries and speculation in the foreign exchange market: the role of monetary policy in Iran’s economy

Sadeghi

Marzban

Samadi

et al. 2022

Economic Structures

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“…Currency undervaluation is also correlated negatively with GDP share changes mentioned Park et al (2019), Wang et al (2022). Due Larionova and Varlamova (2014) influence of economic crisis changes correlation force between macroeconomic factors and indicators of a banking system. Stock market movements are dependent on real-time GDP developments, it is written by Ball and French (2021), Hao et al (2022), Dong et al (2021).…”

Section: Theoretical Backgroundmentioning

confidence: 94%

Aligned Economic Cycle of Global Economies

Vozar,

Kajanova,

Bartekova

2023

JMB

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Background: The alignment of economic cycles is created naturally, by the gradual harmonization of the economic development of economies that are open and cooperating with each other, which gradually over decades has led to their significant economic interconnection, to the creation of the so-called global economy. Aims: The main aim of this paper is to analyze the impact of individual financial crises on economic cycle alignment as well as the naturally increasing correlation between interacting economies themselves. Methods: We have analysed the impact of individual financial crises on economic cycle coherence as well as the naturally increasing correlation between interacting economies. Sample: We examined the historical evolution of the correlation on ten-year periods from 1961 to 2020. Results: The calculated correlations of the percentage GDP growth of the selected 40 countries with the global percentage GDP growth over the last 61 years have shown that the interconnectedness of major economies has reached an advanced level. Conclusions: The higher the correlation of GDP growth of the selected countries with global GDP growth, the higher the effect of economic booms as well as recessions will be multiplied. Implications: This analysis has so far failed to include the impact of the admittedly extremely short but extremely sudden and fully global recession caused by COVID 19.

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“…(2) For the purpose of assessing the impact of certain developments on the banking sector, researchers often use a correlation (Larionova et al, 2014, Jasevičienė et al, 2013, Biswas et al, 2018, Bikker, 2010 and regression analysis (Milič et al, 2017, Tunay et al, 2015. Furthermore, most frequently for analyzing the impact of financial technologies on banks, researchers use the correlation-regression analysis method (DeYoung, 2005, Mwaura et al, 2016, Mustapha, 2015, Mansilla-Fernandez, 2017, Tunay et al, 2015, Shah et al, 2014.…”

Section: Methodsmentioning

confidence: 99%

Possibilities for Financial Technology Sector Development and its Impact on Banking Sector Profitability in Lithuania

Keliuotytė-Staniulėnienė

Smolskytė

2019

Economics and Culture

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Research purpose. The development of financial technology sector (fintech) poses a challenge for traditional financial institutions. Therefore, it is important to analyze not only how financial technologies can change, but also how the fintech sector affects banks and their profitability. The aim of the paper is to analyze the possibilities for the development of financial technology sector and quantitatively evaluate its impact on the banking sector’s profitability in Lithuania. Design / Methodology / Approach. After the analysis of academic literature and statistical data, the authors used expert evaluation method in order to identify development opportunities of fintech in Lithuania and correlation-regression analysis was applied to evaluate the impact of fintech on the profitability of the Lithuanian banking sector. Findings. According to the results of expert assessment research, Lithuania possesses favorable conditions for fintech enterprises to enter the Lithuanian finance market; it is expected that this sector will continue to rapidly expand mostly in payments and banking business models. Correlation-regression analysis showed that fintech indicators has an effect on the banking sector’s profitability but the effect in not very significant. The significance of the connection is lower because banking sector adapts technologies and is influenced by fintech from inside and outside the environment. Originality / Value / Practical implications. The fintech sector in Lithuania is still new and so far very little researched. The outcomes of this research have expanded the scope of research of the Lithuanian fintech sector. The obtained results would be useful and relevant to (i) the government sector to manage risks and ensure stability in the financial sector; (ii) financial sector entities to monitor possible developments and prepare them accordingly; and (iii) banking sector to analyze the impact of technology and fintech entities on them and take strategic decisions in this regard.

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Correlation Analysis of Macroeconomic and Banking System Indicators

Cited by 5 publications

References 4 publications

Financial intermediaries and speculation in the foreign exchange market: the role of monetary policy in Iran’s economy

Financial intermediaries and speculation in the foreign exchange market: the role of monetary policy in Iran’s economy

Aligned Economic Cycle of Global Economies

Possibilities for Financial Technology Sector Development and its Impact on Banking Sector Profitability in Lithuania

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