Recent Developments in Modeling Financial Intermediation

Long-term and Short-term Effects of Financial Intermediation on Economic Growth

Financial intermediation in Iran's banking system is negatively affected at least in two ways. First, there are many similarities between financial intermediation and usurious activities in the common interpretation of interest-free banking law. This encourages the banks to participate in various commercial activities. Second, the price setting policies of the central bank makes investment more...

Operational risk , payments , payment systems , and implementation of Basel II in Latin America : recent developments

Banking is a risky business, and only taking on risks in a professional manner will allow for a healthy business. But, as we all know, the banking and payment industries are not like most other businesses. Given the importance of financial intermediation for the economy and the need to have a functioning infrastructure in order to allow for a speedy and safe transmission of information between ...

Development of Financial Intermediation and Economic Growth Chinese Experience

Using Chinese provincial data from 1985 to 1998 and applying recent GMM techniques developed for dynamic panels, this paper examines how the development of financial intermediation influences China’s economic growth during the post-1978 reform period. Our econometric results show that China’s financial intermediation development contributes to its rapid economic growth through two channels: the...

Financial Intermediation and Macroeconomic Analysis

I ssues relating to fi nancial stability have always been part of the macroeconomics curriculum, but they have often been presented as mainly of historical interest, or primarily of relevance to emerging markets. However, the recent fi nancial crisis has made it plain that even in economies like the United States, signifi cant disruptions of fi nancial intermediation remain a possibility. Under...

International financial networks with intermediation: modeling, analysis, and computations