We construct an endogenous growth model in which bank runs occur with positive probability in equilibrium. In this setting, a bank run has a permanent effect on the levels of the capital stock and of output. In addition, the possibility of a run changes the portfolio choices of depositors and of banks, and thereby affects the long-run growth rate. These facts imply that both the occurrence of a...

Asset-liability mismatch in balance sheet of banks shows serious challenges in banks because of the traditional methods of recording assets and liabilities at book value in Iran. The Central Bank of the country motivated and advised banks to take concrete steps in minimizing the mismatch in the asset-liability composition. This paper attempts to suggest a micro funded framework that can evaluat...

Purpose- This study examines the development of digital payment systems with evolution communication technologies, financial institutions and fintech companies. Also, this analyzes expected effects developing applications. Methodology- The defines different types systems, compares general characteristics payments, provides a timeline developments for most used Findings- payments market is chang...

Increases in uncertainty have ambiguous effects on the rate of investment in complete contracts models. Consequently, in order to model the adverse effects of high inflation on capital accumulation, macro models overimpose a CIA constraint to buy capital goods. The fall in investment is thus due to an increase in the effective price of capital goods, and not due to inflation uncertainty. In inc...