The Nexus of Financial Stability and Financial Access: The Role of Financial Infrastructure

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: closed (30 July 2021) | Viewed by 10686

Special Issue Editors

Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Iasi, Romania
Interests: banking risk; systemic risk; household finance; financial system; financial regulation
Special Issues, Collections and Topics in MDPI journals
Prof. Dr. Simona Nistor
E-Mail Website
Guest Editor
Babeș-Bolyai University, Cluj Napoca, Romania
Interests: systemic risk; financial institutions; banking regulation; cross-border banking; value at risk estimation

Special Issue Information

Dear Colleagues,

Recent contributions to systemic risk literature highlight that greater financial inclusion has both positive and negative consequences on financial stability, but the empirical literature is still limited. The purpose of this Special Issue is to provide a framework that permits one to assess the interplay between financial inclusion, financial stability, and financial infrastructure, and aims to compile high-quality papers that offer a discussion of the state-of-the-art or introduce new theoretical or practical developments related to identifying the channels that could shape the impact of financial inclusion on stability and the possible particularities of the relationship.

We welcome papers related but not limited to the following topics:

  • The impact of financial inclusion on banks’ risk taking (a microprudential perspective);
  • The influence of financial inclusion on banks’ contribution to systemic risk (a macroprudential perspective);
  • The channels that could shape the relationship between financial inclusion and banking sector stability;
  • The effects of financial crises on the financial infrastructure from an access-to-finance perspective;
  • The repercussion of the financial crises on access to finance, both at the household and firm level;
  • The financial infrastructure and competition level across European financial systems; the nexus of competition on the access to finance;
  • The effects of regulatory changes on access to finance.

Prof. Alin Marius Andrieş
Prof. Dr. Simona Nistor
Guest Editors

Manuscript Submission Information

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Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • financial crises
  • banks’ risk taking
  • systemic risk
  • macroprudential policies
  • access to finance
  • financial infrastructure
  • microprudential regulation

Published Papers (3 papers)

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Research

19 pages, 4393 KiB  
Article
Risk Mutualization in Central Clearing: An Answer to the Cross-Guarantee Phenomenon from the Financial Stability Viewpoint
Risks 2021, 9(8), 148; https://doi.org/10.3390/risks9080148 - 19 Aug 2021
Cited by 2 | Viewed by 1874
Abstract
Central counterparties’ (CCPs) role is to take over the counterparty risk during trading. To fulfill its role, a CCP needs to operate a multi-level guarantee system that can absorb losses of clearing members’ defaults. Our main question is how the size of the [...] Read more.
Central counterparties’ (CCPs) role is to take over the counterparty risk during trading. To fulfill its role, a CCP needs to operate a multi-level guarantee system that can absorb losses of clearing members’ defaults. Our main question is how the size of the guarantee system changes and how the cross-guarantee undertaking changes between clearing members and markets if the CCP merges the guarantee systems of different markets. This question is essential from a financial stability perspective since the size and the structure of the guarantee system will affect the loss-absorbing capacity of a CCP. We used Monte Carlo simulation to simulate a 30 year time-series for three different products, which gave us the basis for the value-at-risk-based margin calculation and the stress-test-based default fund calculation. Results show that merging the guarantee systems will always decrease the total value of the guarantees because the margin will decrease, which cannot be offset by the increase in the default fund size. We conclude that it is not optimal from the financial stability perspective to merge the guarantee systems. However, if the CCP wants to provide cheaper services, or if the clearing members are willing to cross-guarantee each other, merging is more suitable. Full article
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29 pages, 768 KiB  
Article
Corporate Governance and Cost of Capital: Evidence from Emerging Market
Risks 2020, 8(4), 104; https://doi.org/10.3390/risks8040104 - 09 Oct 2020
Cited by 6 | Viewed by 3864
Abstract
This study used a researcher self-constructed corporate governance index as a proxy to measure the firm-level corporate governance compliance and disclosure with the 2002 Pakistani Code of Corporate Governance, to examine the relationship between corporate governance and cost of capital. We found a [...] Read more.
This study used a researcher self-constructed corporate governance index as a proxy to measure the firm-level corporate governance compliance and disclosure with the 2002 Pakistani Code of Corporate Governance, to examine the relationship between corporate governance and cost of capital. We found a negative and significant association between the Pakistani Corporate Governance Index (PCGI) and block ownership with the firm-level cost of capital. On average, better-governed Pakistani listed firms tend to be associated with a lower cost of capital than their poorly governed counterparts are. As an emerging market, good corporate governance practices are mainly related to minimise corporate failure and assist firms in attracting capital at a lower cost. Full article
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18 pages, 669 KiB  
Article
Fiscal Responsibility Legal Framework—New Paradigm for Fiscal Discipline in the EU
Risks 2020, 8(3), 79; https://doi.org/10.3390/risks8030079 - 21 Jul 2020
Cited by 3 | Viewed by 4436
Abstract
This paper aims at studying the legal aspects of the European Union (EU)’s fiscal policy, analyzing the statute of fiscal responsibility legal framework, the different measures undertaken in the last years with respect to European trends in fiscal governance and their implications for [...] Read more.
This paper aims at studying the legal aspects of the European Union (EU)’s fiscal policy, analyzing the statute of fiscal responsibility legal framework, the different measures undertaken in the last years with respect to European trends in fiscal governance and their implications for challenges in public finance sustainability. The research started from the presupposition that there is a lack of mechanisms capable of enforcing the area of public finance sustainability, and the implication of the events that created the economic conjuncture of recent years reveals that the solidity of public finances has reached an impasse and needs to be enhanced. The analyzed documents from the area of fiscal responsibility show formal respect for the legislative framework aimed at consolidating public finance sustainability and accentuate the need to use fiscal laws, independent institutions and mechanisms that put constraints on policymakers and determine them to spend more efficiently, invest more wisely, and obtain better results regarding public finance sustainability. We conclude that future policymaking processes need to consider the consolidation of independent fiscal institutions founded by Fiscal Responsibility Law framework, completed by fiscal rules and, therefore, need to redesign the fiscal risk management process. Full article
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