1,720,983 research outputs found
Financial inclusion
Get PDFFinancial inclusion has been noted as a key driver of poverty alleviation and growth. Yet, most of the scholarly work that exists lacks a comprehensive discussion of how the poor interact with financial services and the channels through which such services can affect their livelihoods. This book offers researchers who focus on financial inclusion and African economies a one stop resource for understanding the channels of transmission for financial inclusion as well as an application of these channels through original country specific empirical papers. The book provides a back-to-basics presentation of the transmission of financial services to growth and poverty. This theoretical discussion is complemented by an empirical presentation of the various services used by the poor, with a focus on Africa. Case studies of financial inclusion in six African countries cover a broad range of topics most important to African countries and highlight the unique African setting. These empirical papers provide important learning points. Firstly, hybrid financial institutions such as cooperative financial institutions and financial social entrepreneurs are the best way to increase financial inclusion in Africa. They provide important vehicles to circumventing the restrictive and exclusive bank-based financial markets typical of African economies. Secondly, digital finance is a potent tool in improving financial access and usage in Africa, and its impact on poverty operates through both traditional and nontraditional financial instruments. Thirdly, investment in infrastructure which supports complementary markets is critical and is likely to have a greater effect on credit rationing than direct provision of credit to small businesses
Market Structure and Competition in the South African Banking Sector
No full textAbstractThis paper examines the relationship between bank structure, performance and competition in the South African banking industry. South Africa has a very concentrated banking industry with a C4 concentration ratio of over 80%. The structure conduct performance hypothesis would suggest that competition in the sector would therefore be very low. We apply the Panzar-Rosse approach to bank level data for the period 1997 to 2014 to assess the competitive environment in the South African banking industry. We estimate a revenue equation to obtain the H statistic. Changes in competition over the sample period are explored by estimating a time varying Panzar-Rosse H statistic. This also allows us to assume a gradual change in bank competition rather than a static equilibrium. We find that competition has increased over time. This result is consistent no matter how the time variable enters the revenue equation. The estimated H statistic suggests that banks operate in a monopolistically competitive market structure. Bank specific factors are generally consistent across alternative measures and in line with expectations. We also find that the increased concentration arising from the currency crisis in 2001/02 does not reduce the level of competition. This result is somewhat puzzling because the industry exhibits relatively high transactions fees in the larger bank
Financial Sector Reforms and Monetary Policy in Zambia
Get PDFThe dissertation comprises four chapters focusing on issues concerning policy reforms and monetary policy in Zambia.
Chapter 1 briefly outlines the theoretical foundations for the reforms undertaken in Zambia since the mid 1980s and the process thereof. The main issues addressed were the removal of interest rate and credit controls, exchange rate devaluation and the use of indirect instruments in implementing monetary policy. The review indicates that although the control of inflation is still difficult and figures are still in double digit levels, annual inflation rates have reduced significantly compared to levels achieved in the early 1990s. The nominal exchange rate has been depreciating prompting increased intervention from the central bank. Despite the increase in nominal interest rates, real deposit rates have remained negative.
Chapter two analyses the monetary transmission mechanism in Zambia. Vector auto -regressions are estimated for the pre-reform and post-reform periods.Variance decompositions and impulse response functions are examined to see whether there are any changes observed in the monetary transmission mechanism after the reforms. Different systems are estimated in each period using alternate variables as measures of monetary policy shocks. The results show that contractionary monetary policy is followed by a fall in both output and prices. When compared, results from the two estimation periods show that both the responsiveness of prices and output to policy shocks and the magnitude of their forecast error variance decompositions explained by these variables have increased since the reforms. The results also show that the impact lags have reduced. There is evidence of the bank lending channel both before and
after the reforms. Of the mechanisms estimated, the exchange rate mechanism seems to be the most important mechanism for transmission of policy shocks to both prices and output during the post-reform period.
Chapter three investigates whether monetary aggregates have useful information for predicting inflation other than that provided by inflation itself. Forecasting experiments are conducted to see whether monetary aggregates and selected financial sector variables are useful in predicting inflation.We perform forecasting experiments and compare the performance of different models. We also estimate an error correction model of inflation. Of the monetary aggregates considered, M2 contains the most information and its growth rate is significant in the inflation model. The external sector variables are also important. The results indicate that inflation exhibits a high level of inertia suggesting the presence of implicit indexation and significant inflationary expectations possibly due to past fiscal effects and low policy credibility. Overall, the foreign sector variables seem to be more important for movements in prices than monetary aggregates even in the long run.
The importance of the exchange rate to stabilisation policy in Zambia is underscored by the results obtained in chapters 2 and 3. In this paper, we pursue this idea by investigating the effect of central bank intervention on exchange rates in Zambia. Using a GARCH (1, 1) model of the exchange rate, we simultaneously estimate the effect of cumulative intervention on the mean and variance of the exchange rate.We find that central bank intervention in the foreign exchange market increases the mean but reduces the variance of the exchange rate. The explanation leans towards speculative bandwagons and a 'leaning against the wind' strategy. Although there is no attempt to distinguish through which channel intervention operates, we argue that this is more likely to be a signalling effect rather than a portfolio balance effect. This effect operates mainly through the supply and demand of foreign exchange in the market
Motivations and perceived usefulness of technology in higher education
No full textThis study investigates student experiences with learning and teaching technologies using data obtained through an online survey of 553 students. The following specific questions are addressed in the study. What type of learning and teaching technologies do students use for their study and how often do students use these technologies in a learning week? Do students find these technologies useful or do they use them by compulsion? What is the perceived usefulness that students attach to these technologies? Given the increased number of students with part-time jobs, does technology play any role in enhancing student engagement with their studies? The data obtained is used to describe technology use patterns. Student perceived benefits of learning and teaching technology are discussed along with the perceived constraints in technology use. Likert scale type questions were asked about a wide range of technologies including those used to enhance face to face contact and those used in flexible learning. The results show that students have a preference for technologies that enhance flexible learning such as podcasting, web based activities and online discussions. A large number of students also indicated that PowerPoint slides were useful but their effect was mitigated by improper use and ill designed slides. The results show that the majority of students find that technology enhances their learning experience but are constrained by lack of training for specific technologies, poorly designed virtual learning environments and ill equipped staff. Contrary to general belief (re Oblinger's 'Net generation' or Prensky's 'digital natives'), students have a strong affinity for face to face learning and find that the text book is still the primary source of learning; technology is seen as a way of enhancing learning rather than the main learning vehicle itself. Overreliance on technology is identified as one of the main problems in learning with technology. The results also suggest that flexible learning technologies play an important role in study engagement for students who work longer than 10 hours a week
Financial Sector Reforms and Monetary Policy in Zambia
No full textThe dissertation comprises four chapters focusing on issues concerning policy reforms and monetary policy in Zambia. Chapter 1 briefly outlines the theoretical foundations for the reforms undertaken in Zambia since the mid 1980s and the process thereof. The main issues addressed were the removal of interest rate and credit controls, exchange rate devaluation and the use of indirect instruments in implementing monetary policy. The review indicates that although the control of inflation is still difficult and figures are still in double digit levels, annual inflation rates have reduced significantly compared to levels achieved in the early 1990s. The nominal exchange rate has been depreciating prompting increased intervention from the central bank. Despite the increase in nominal interest rates, real deposit rates have remained negative. Chapter two analyses the monetary transmission mechanism in Zambia. Vector auto -regressions are estimated for the pre-reform and post-reform periods.Variance decompositions and impulse response functions are examined to see whether there are any changes observed in the monetary transmission mechanism after the reforms. Different systems are estimated in each period using alternate variables as measures of monetary policy shocks. The results show that contractionary monetary policy is followed by a fall in both output and prices. When compared, results from the two estimation periods show that both the responsiveness of prices and output to policy shocks and the magnitude of their forecast error variance decompositions explained by these variables have increased since the reforms. The results also show that the impact lags have reduced. There is evidence of the bank lending channel both before and after the reforms. Of the mechanisms estimated, the exchange rate mechanism seems to be the most important mechanism for transmission of policy shocks to both prices and output during the post-reform period. Chapter three investigates whether monetary aggregates have useful information for predicting inflation other than that provided by inflation itself. Forecasting experiments are conducted to see whether monetary aggregates and selected financial sector variables are useful in predicting inflation.We perform forecasting experiments and compare the performance of different models. We also estimate an error correction model of inflation. Of the monetary aggregates considered, M2 contains the most information and its growth rate is significant in the inflation model. The external sector variables are also important. The results indicate that inflation exhibits a high level of inertia suggesting the presence of implicit indexation and significant inflationary expectations possibly due to past fiscal effects and low policy credibility. Overall, the foreign sector variables seem to be more important for movements in prices than monetary aggregates even in the long run. The importance of the exchange rate to stabilisation policy in Zambia is underscored by the results obtained in chapters 2 and 3. In this paper, we pursue this idea by investigating the effect of central bank intervention on exchange rates in Zambia. Using a GARCH (1, 1) model of the exchange rate, we simultaneously estimate the effect of cumulative intervention on the mean and variance of the exchange rate.We find that central bank intervention in the foreign exchange market increases the mean but reduces the variance of the exchange rate. The explanation leans towards speculative bandwagons and a 'leaning against the wind' strategy. Although there is no attempt to distinguish through which channel intervention operates, we argue that this is more likely to be a signalling effect rather than a portfolio balance effect. This effect operates mainly through the supply and demand of foreign exchange in the market. <p
E-payment instruments and welfare: The case of Zimbabwe
Get PDFThe literature shows that electronic payments are key to improving financial inclusion and
achieving global development goals such as the United Nation’s (UNs) Sustainable
Development Goals. The benefits are premised on the welfare-enhancing effects of digital
payments, which reduce costs, the probability of loss and risk for low-income consumers,
as well as improve access to formal financial services. This study thus investigates the
conditions under which these welfare-enhancing gains can be obtained. It considers the
conditions under which e-payments can be welfare enhancing by using qualitative data
from Zimbabwe. The severe liquidity constraints in Zimbabwe provide a good case for
evaluating how well e-payments work, as the relative absence of cash has made the use
of mobile money inevitable. Focus group data are analysed to understand participants’
everyday experiences with the e-payment system in Zimbabwe. The results indicate that
the key challenges with payment systems faced by households include high costs,
malfunctions of the system at the point of sale, lengthy refund processes and limited
acceptance. Participants indicate a strong preference for foreign exchange cash as a mode
of payment. High levels of concentration in the mobile money market, lack of transparency
by financial service providers and a strong preference for cash by retailers are the main
drivers of system failure. Therefore, this study identifies the need for the government to
address the lack of competition in the market, as well as address macroeconomic liquidity
constraints
Financial sector reforms and monetary policy reforms in Zambia
Get PDFABSTRACT The dissertation comprises four chapters focusing on issues concerning policy re-forms and monetary policy in Zambia. Chapter 1 briefly outlines the theoretical foundations for the reforms undertaken in Zambia since the mid 1980s and the process thereof. The main issues addressed were the removal of interest rate and credit controls, exchange rate devaluation and the use of indirect instruments in implementing monetary policy. Monetary policy also began to focus more on stabilisation through bringing the inflation rate down. The review indicates that although the control of inflation is still difficult and figures are still in double digit levels, annual inflation rates have reduced significantly compared to levels achieved in the early 1990s. The nominal exchange rate has been depreciating prompting increased intervention from the central bank. Despite the increase in nominal interest rates, real deposit rates have remained negative. Chapter two analyses the monetary transmission mechanism in Zambia. Vector auto -regressions are estimated for the pre-reform and post-reform periods. Variance decompositions and impulse response functions are examined to see whether there are any changes observed in the monetary transmission mechanism after the reforms. Different systems are estimated in each period using alternate variables as measures of monetary policy shocks. The results show that contractionary monetary policy is followed by a fall in both output and prices. When compared, results from the two estimation periods show that both the responsiveness of prices and output to policy shocks and the magnitude of their forecast error variance decompositions explained by these variables have increased since the reforms. The results also show that the impact lags have reduced. There is evidence of the bank lending channel both before and after the reforms. Of the mechanisms estimated, the exchange rate mechanism seems to be the most important mechanism for transmission of policy shocks to both prices and output during the post-reform period. Chapter three investigates whether monetary aggregates have useful information for predicting inflation other than that provided by inflation itself. Fore-casting experiments are conducted to see whether monetary aggregates and selected financial sector variables are useful in predicting inflation. We perform forecasting experiments and compare the performance of different models. We also estimate an error correction model of inflation. Of the monetary aggregates considered, M2 contains the most information and its growth rate significant in the inflation model. The external sector variables are also important. The results indicate that inflation exhibits a high level of inertia suggesting the presence of implicit indexation and significant inflationary expectations possibly due to past fiscal effects and low policy credibility. Overall, the foreign sector variables seem to be more important for movements in prices than monetary aggregates even in the long run. The importance of the exchange rate to stabilisation policy in Zambia is underscored by the results obtained in chapters 2 and 3. In this paper, we pursue this idea by investigating the effect of central bank intervention on ex-change rates in Zambia. Using a GARCH (1, 1) model of the exchange rate, we simultaneously estimate the effect of cumulative intervention on the mean and variance of the exchange rate. We find that central bank intervention in the foreign exchange market increases the mean but reduces the variance of the exchange rate. The explanation leans towards speculative bandwagons and a 'leaning against the wind' strategy. Although there is no attempt to distinguish through which channel intervention operates, we argue that this is more likely to be a signalling effect rather than a portfolio balance effect. This effect operates mainly through the supply and demand of foreign exchange in the market.monetary policy; financial reforms; zambia
- …
