To prevent crises in the economy, it is necessary to ensure the financial stability of banks, which is one of the main tasks facing the banking system.The purpose of this article is to develop tools ...for improving the efficiency of financial stability management in a bank based on strategy maps.Using UkrSibbank (Ukraine) as an example, two strategy maps are developed: a general management map and a local map – for the international payments division of the operational payments department. Structural elements of the designed strategy maps are: finances, clients, internal processes, training and development.Implementing the developed general strategy map in the bank’s practical activities involves the following measures: increasing financial stability; avoiding credit risk and optimizing the credit process; increase in profit; cost reduction; introducing new banking products; increase in the number of satisfied consumers; involvement and retention strategic clients.The developed strategy map for the international payments division of the operational payments department provides for the following measures: ensuring sufficient liquidity level of the bank’s balance sheet; introducing an effective system of analysis of origin of individuals’ and legal entities’ funds; direct correlation between employees of the international payments division and bank customers; timely informing customers regarding requirements updated.
The aim of this paper is to find alternative method of executing reimbursement loan, as a form of documentary loan, that is, to investigate new digital technology methods (fintech) to improve the ...efficiency of the international exchange. Reimbursement loans are often used to credit the trade of overseas goods. The reason of such case is that the shipment of goods by the maritime transport requires a significant amount of time and those trades are often associated with high financial amounts. Since international trade (exchange) is a kind of a generator of society’s progress, it is necessary to explore the possibilities for making international payment cheaper, more efficient and more secure. In this case, we based our research on the implementation of modern technologies, more precisely “blockchain”/DLT (Distributed Ledger Technology) and “smart contracts”. The new reimbursement loan model presented in the paper is based on the aforementioned technologies. It could potentially change not only the documentary lending techniques, but also, eventually, overall financial paradigm. The effectiveness of the application of modern technologies is proven comparing the results of the so called conventional and unconventional reimbursement credit model on a real case involving two companies in Indonesia and Singapore. The paper also tackles on the further implementation of “smart contract” technology and “blockchain”/DLT, thus considering the potential impact of these technologies on overseas trade, credit markets and financial institutions. Finally, the paper argues on the limitations in implementing this new technique (e.g. legal, political and technical challenges).
The article examines the war and postwar vicissitudes of the sterling area, bringing to limelight features and questions of present and immediate significance for the current system of international ...payments as a whole. JEL: E42
This text addresses the ecological political economy of international payment for ecosystem services (IPES). Taking the United Nations Collaborative Programme on Reducing Emissions from Deforestation ...and Forest Degradation in Developing Countries (REDD) as a case in point, it asks: in what ways may IPES schemes impinge upon the political and economic autonomy of local and indigenous peoples in tropical countries? It is argued that PES schemes like REDD should be assessed not only with respect to questions of distributional equity (does everyone have enough pie?) but also with respect to franchise equity (does everyone want pie?) and that failure to take questions of franchise equity into account in IPES schemes reflects a form or intellectual mercantilism, where wealth transfers from new economies to old ones are achieved by redefining existing locally available resources as internationally tradable speculative commodities. This proposition is considered through exploration of two illustrative cases – the REDD+ Social and Environmental Standards (REDD+ SES) and the Yasuní-ITT initiative – and through normative political theory recommendations building on Dryzek and Stevenson's discussion of deliberative systems, regarding how it might be possible to ensure franchise equity within REDD+ in particular and within global environmental governance, more generally.
•Interpreting and critiquing REDD as a de facto laissez-faire earth systems governance regime for forest management.•Fairness, franchise and the peculiar character of international payment for ecosystem service.•Globalized financial income, local environmental costs and benefits; the problem of franchise equity in ecological economics.•Exploring the idea of intellectual mercantilism and the practice of financial speculation in ecological functions.•An ecological political economy approach to the study of institutional ecological economics.
Within the uncharted course which has been followed by the international payments system in recent years, the new exchange rate arrangements administered by the International Monetary Fund under the ...Second Amendment appear to have had a limited effectiveness. Positive action has been taken, however, with respect to the Special Drawing Rights (SDR), and further action is being contemplated. Ten years have now elapsed since the decisions to activate the SDR. The present work takes a distant fresh look at this reserve asset and at its prospects, and presents suggestions for going forward. JEL: E42
The work looks at the rise in the price of crude oil, elucidating some economic implications of the issues which a large number of economies will have to face in the near future. The authors first ...consider the primary impact of the rise in the price of crude on the economy of an importing country considered in isolation. A simple model shows a very sizeable deflationary effect which, to a large extent, can only be offset as a result of deliberate policy decisions. It is also shown how each importing country’s decisions in this matter affect the situation of all others. Some aspects of the international payments problem are then dealt with. JEL: E31, Q41, Q43
Instability in the world dollar standard, as most recently manifested in the US Federal Reserve's near‐zero interest rate policy, has caused consternation in emerging markets with naturally higher ...interest rates. China has been provoked into speeding RMB “internationalization”; that is, opening up domestic financial markets to reduce its dependence on the US dollar for invoicing trade and making international payments. However, despite rapid percentage growth in offshore financial markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls (reinforced by financial repression in domestic interest rates) to avoid an avalanche of foreign capital inflows that would threaten inflation and asset price bubbles by driving nominal interest rates on RMB assets down further. Because a floating (appreciating) exchange rate could attract even more hot money inflows, the People's Bank of China should focus on keeping the yuan/dollar rate stable so as to encourage naturally high wage increases to help balance China's international competitiveness. However, further internationalization of the RMB, as with the proposed Shanghai pilot free trade zone, is best deferred until world interest rates rise to more normal levels.
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