We discuss the implications on banks and the economy of prudential regulatory intervention to soften the treatment of non-performing exposures (NPEs) and ease bank capital buffers. We apply these ...easing measures on a sample of Globally Systemically Important Banks (G-SIBs) and show that these banks can play a constructive role in sustaining economic growth during the COVID-19 pandemic. In addition, an empirical analysis shows that prudential regulatory responses to COVID-19 along with high regulatory capital and low non-performing loans ratios are positively associated with economic growth. Thus, banks should maintain high capital ratios in the medium-term horizon to absorb future losses, as the effect of COVID-19 on the economy might take time to fully materialize.
•Banks can play a constructive role in sustaining economic growth during the COVID-19 pandemic.•Bank and financial sector COVID-19 relief policies have a positive effect on economic growth.•Banks with high regulatory capital and low non-performing loans ratios are positively associated with economic growth.
This study came to inspect a new approach to the government debt security assessment based on the systematization of indicators in terms of four directions: solvency, liquidity, domestic ...indebtedness, and external indebtedness. The proposed methodology considers the weaknesses, which negatively affect the level of government debt security. It was established that in 2014−2016 the level of security at emerging markets was the worst. The main reason was insufficient solvency. Also, the obtained results showed that the general assessment of domestic indebtedness in recent years had a more dangerous level than the external one. In addition, it was revealed that similar problems with the level of debt burden are also presented in the EU countries since the value of the analyzed indicator – general government debt to GDP – exceeds 60%. It is recommended to consider the experience of debt management reform of new members of the EU and, at the same time, post-socialist countries by other emerging economies.
This study investigates the factors constraining the development of the UK equity release market. The results of a thematic review of interviews with industry stakeholders (product providers, advice ...providers and regulators) suggest that the attractiveness of the equity market for insurance companies (the main funders of the market), has diminished following a decline in annuity business and complications around the capital maturity matching requirements under Solvency II. Product costs (interest charges, and the cost of financial advice) are high. Trust in the market has improved, but remains fragile. Increased entry into the market by recognised brand names, (such as the traditional mortgage providers) would increase competition, reduce costs and promote trust. The risk of reputational damage limits the appeal of the market to new entrants. The no negative equity guarantee, a cost in terms of lower than otherwise loan-to-value ratios, promotes demand by way of the protection it affords to customers and their beneficiaries. Equity release is unsuitable for funding long-term care and policymakers advocating it as such damage the market.
•The study adds to the literature on housing equity release markets in two ways.•First, it captures and thematically analyses insights from service providers.•That highlights supply side issues impeding the growth of an efficient UK ER market.•Second, it is the first study to consider the views of the UK regulatory authorities.
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•Solubility data measured for the CO2 + n-dodecane + 3,7+dimethyl-1-octanol system.•Mixtures consisting largely of n-dodecane are co-solvent.•Fitted RK-ASPEN model can correlate ...solubility data and approximate VLE data.
In this work, the solute-solute interaction which exist in the CO2 + n-dodecane+ 3,7-dimethyl-1-octanol system was investigated. Solubility data were measured for three mixtures containing solvent free n-dodecane fractions of 0.50, 0.75 and 0.85, between 308 K and 348 K and pressures up to 14.9 MPa, with solvent mass fractions ranging from 0.375 to 0.984, using a static synthetic method. The data revealed significant solute-solute interactions, which resulted in the occurrence of co-solvency in the two n-dodecane rich mixtures. The phase behaviour data of the system was modelled, using the RK-ASPEN model. The modelling results indicated that, with the inclusion of a solute-solute interaction parameter, the fitted model was capable of correlating fairly accurate solubility data, but it can only approximate vapour-liquid-equilibrium data.
The study examines how premiums ceded to a reinsurer affect the profitability of non-life insurance companies in Ghana. Secondary data on reinsurance ceded, combined ratio, assets, liabilities and ...return on assets for 20 non-life insurance companies over the period 2008–2018 were sourced from National Insurance Commission whilst interest and exchange rates variables were obtained from the Bank of Ghana. Panel regression model was employed for the analysis of the data collected.
The results show that purchasing high levels of reinsurance alone does not affect the profitability of non-life insurance companies, but the combined effect of reinsurance and solvency ratio significantly impact their profitability. Managers of non-life insurance companies in Ghana should increase their ability to repay all financial obligations in the short, medium and long term in combination with reinsurance. This will enable insurers to stabilize growth, earn profits and meet their obligations to policyholders in a timely fashion.
JEL Code: G22
The branch features of functioning the enterprises of the extractive industry influencing the organization of the account, the analysis and audit are established: limited stocks of minerals influence ...the actual period of functioning of the enterprise; seasonal demand for products; complex production; the location of the enterprise in relation to settlements must be consistent with the safety of the technological process for the environment, people; obtaining special permits for legitimate subsoil use. The elements of accounting policy as a tool for the actual reflection of contractual and depreciation policy in the financial statements are described. It was found that all surveyed companies apply a uniform depreciation policy. Given the seasonal nature of production and underutilization of capacity, it is proposed to move to the application of intensive depreciation policy. This will allow you to clearly plan the timing of equipment upgrades and the cost of own or borrowed funds for its implementation Stages of assessment of buyers’ solvency are offered. The first stage involves establishing the degree of implementation of agreements between buyers and the mining industry. The second stage involves determining the completeness of the provision of cash or non-cash proceeds from sales based on the establishment of correlations between the indicators of the statement of financial performance and the statement of cash flows. The third stage involves establishing the increase in receivables for sold products, goods, works, services for the reporting period and the share of the increase in receivables in the net income from sales for the reporting period.
In Nigeria, five banks have been designated as ‘too-big-to-fail’ given their critical importance to the wellbeing of the Nigerian economy. It is thus of critical importance to understand the factors ...that are important in ensuring that these Domestic Systemically Important Banks (D-SIBs) continue to perform well financially for the foreseeable future. This importance is further heightened by the fact that at the end of 2020, the Central Bank of Nigeria voiced its concern regarding the decline in the capital adequacy ratio and the increase in the ratio of non-performing loans of Nigerian banks. It is against this backdrop that this study investigates the effect of dividend policy on all of Nigeria’s D-SIBs. It determined whether the influence was homogenous among the selected banks. It found that in the short run, the effect of dividend policy on profitability is heterogenous among banks. This study adopted an ex post facto research design, with dividend policy and bank performance data obtained from the audited financial statements and official annual reports of five D-SIBs (First Bank, GTB, Zenith Bank, UBA, and Access Bank) over a 10-year period (2011–2020). The data were analyzed using panel regression and pooled mean group (PMG) estimators. The study observed that dividend policy had significant impact on the profitability and efficiency of these five D-SIBs, a partial impact on their valuation, and no impact on their liquidity and solvency. Managers of D-SIBs in Nigeria must find a balance between how much dividends they pay to their shareholders and how much they retain to ensure continued profitability.
Introduction. Diagnostics of financial activity is one of the most important components of business economic analysis. It contributes to the indication of the competitiveness of a business, to ...monitor its liquidity, creditworthiness, financial stability and market position, and to develop mechanisms to guard against bankruptcy. All subjects related to the business life of the company and business should use financial analysis methodology to make data-driven decisions aimed at optimizing their interests. The process of diagnosis of the financial status of the enterprise is a complex concept that uses a combination of factors, which are the basis of methods of bankruptcy forecasting, assessing the borrower’s creditworthiness and analyzing the investment attractiveness of the enterprise. Appropriately based diagnosis helps to ensure that the financial resources are used rationally and therefore the efficiency and the competitiveness of the enterprise are managed. Purpose. The purpose of the research is to review and compare the methods and tactics used to diagnose the financial status of enterprises and the results of their activity. This will enable enterprises to identify and prevent shortcomings in financial activities, find reserves for improving the financial position of the company and its solvency. Conclusions. The article sets out the subject matter of the financial status of enterprises, together with relevant researched theoretical and methodical foundations and modern scientific approaches to its interpretation are generalized. The significance and necessity of diagnostics of financial conditions are substantiated. The fundamental stages of conducting financial diagnostics are identified, the collection of indicators employed is analyzed, the main tasks of action are formulated. Criteria and primary methods of diagnostics of the financial status of enterprises are considered.
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