Issues

Journal & Issues

Volume 11 (2022): Issue 3 (September 2022)

Volume 11 (2022): Issue 2 (May 2022)

Volume 11 (2022): Issue 1 (January 2022)

Volume 10 (2021): Issue 3 (September 2021)

Volume 10 (2021): Issue 2 (May 2021)

Volume 10 (2021): Issue 1 (January 2021)

Volume 9 (2020): Issue 3 (September 2020)

Volume 9 (2020): Issue 2 (May 2020)

Volume 9 (2020): Issue 1 (January 2020)

Volume 9 (2020): Issue s1 (July 2020)

Volume 8 (2019): Issue 3 (September 2019)

Volume 8 (2019): Issue 2 (May 2019)

Volume 8 (2019): Issue 1 (January 2019)

Volume 7 (2018): Issue 3 (September 2018)

Volume 7 (2018): Issue 2 (May 2018)

Volume 7 (2018): Issue 1 (January 2018)

Volume 6 (2017): Issue 3 (September 2017)

Volume 6 (2017): Issue 2 (May 2017)

Volume 6 (2017): Issue 1 (January 2017)

Volume 5 (2016): Issue 3 (September 2016)

Volume 5 (2016): Issue 2 (May 2016)

Volume 5 (2016): Issue 1 (January 2016)

Volume 4 (2015): Issue 3 (September 2015)

Volume 4 (2015): Issue 2 (May 2015)

Volume 4 (2015): Issue 1 (January 2015)

Volume 3 (2014): Issue 3 (September 2014)

Volume 3 (2014): Issue 2 (May 2014)

Volume 3 (2014): Issue 1 (January 2014)

Journal Details
Format
Journal
eISSN
2336-9205
First Published
11 Mar 2014
Publication timeframe
3 times per year
Languages
English

Search

Volume 6 (2017): Issue 2 (May 2017)

Journal Details
Format
Journal
eISSN
2336-9205
First Published
11 Mar 2014
Publication timeframe
3 times per year
Languages
English

Search

8 Articles
Open Access

XBRL Implementation in the Banking Sector in Montenegro

Published Online: 22 May 2017
Page range: 5 - 22

Abstract

Abstract

The EXtensible Business Reporting Language – XBRL appeared in the beginning of the 21st century and it represents one of the most important technological innovations in financial reporting, collecting and exchanging data since the introduction of electronic spreadsheets. However, although the XBRL standard is globally accepted, and it has been proved to be a standard sui generis, the implementation of the standard has not yet become a reality in Montenegro and the region. In this context, the goal of this article is to evaluate a new and, for our conditions unexplored, area from the point of application of modern methods of accounting theory and practice, highlighting both positive and negative aspects. This research is getting prominence having in mind that the EU integration process which Montenegro has already started would affect all areas of socioeconomic life and development, especially in terms of accounting practices harmonization.

Keywords

  • XBRL
  • financial reporting
  • digitalization
  • Internet
  • accounting standards
  • management
  • company
  • stakeholders
  • globalization

JEL Classification

  • E58
  • M41
Open Access

The Impact of Financial Dollarization on Inflation Targeting: Empirical Evidence from Serbia

Published Online: 22 May 2017
Page range: 23 - 43

Abstract

Abstract

Serbia has applied inflation targeting against the backdrop of financial dollarization for almost a decade. In such circumstances, efficiency of monetary policy instruments decreases and begs the question of efficiency of the monetary regime efficiency issue. Although there is some empirical testing of financial dollarization effects on monetary policy performance in the inflation targeting regime for some countries, such studies for Serbia mostly cover periods of early application of the regime.

Therefore, the authors analysed financial dollarization effects on prices, i.e. exchange rate pass-through effect using Serbia as an example. The study concludes that although unpredictable changes in financial dollarization strongly affect nominal exchange rate, prices level is subject to moderate but persistent increase upon this shock.

Keywords

  • Serbia
  • financial dollarization
  • inflation targeting
  • pass-through effect

JEL Classification

  • E42 and E52
Open Access

Perspectives on Monetary Policy and Cost of Capital: Evidence from Turkey

Published Online: 22 May 2017
Page range: 45 - 64

Abstract

Abstract

The target of monetary policy is generally set as to create an environment of manageable employment and affordable long-term interest rates. However, priorities of central banks may differ depending on economic and financial circumstances of individual countries. Modern approaches to monetary policy transmission can be grouped under two headings, Money View and Credit View. The money view concentrates on interest rates to explain the effects of monetary policy on aggregate spending by creating an interest rate channel. The credit channel transmission approach focuses on the supply of credits by banks following a monetary policy shift in interest rates. In 2010, the Central Bank of Turkey (CBT) developed an interest rate corridor shaped by one-week and overnight repo lending to the financial banks to absorb excessive volatility caused by short-term capital inflows. Under this framework, the CBT implements its monetary policy in two ways; firstly it can alter the interest rates of weekly repo as well as O/N lending rate. Secondly, it can configure the funding structure it provides to the financial intermediaries. In such a framework, the interest rate transmission mechanism has been operated by two benchmark interest rates, one of which is the weighted average of the cost of funds provided by the CBT and the other is the interest rate in Borsa Istanbul (BIST) money market transactions at an overnight maturity. There is a strong co-movement between the interest rates and they are affected by the movements in the CBT lending rate in both directions. Interest rates applied to deposits and loans by banks are affected by the policy rate (CBT Average Funding Rate) and the market rate (BIST O/N Repo Rate).

Keywords

  • Monetary Policy
  • Transmission Channels
  • Money View
  • Credit View

JEL Classification

  • E52
  • E58
Open Access

Comparative Analysis of Results of Online and Offline Customer Satisfaction & Loyalty Surveys in Banking Services in Montenegro

Published Online: 22 May 2017
Page range: 65 - 76

Abstract

Abstract

The logic that customer satisfaction is the starting point of marketing and business activities is based on the assumption that customer satisfaction leads to customer loyalty, keeping in mind all of the positive effects that customer loyalty has on business success of an organization. Because of this, marketing and management theory and practice dedicate particular attention to the concepts of customer satisfaction and loyalty. In this paper we will use the surveys of customers of banking services not only to show the levels of their satisfaction and loyalty, but also to make a comparative analysis of data obtained through online and offline research. This approach was made possible because the research was carried out on a sample which was divided in two groups. All of the participants answered the questions from a unique questionnaire, however, one group took the survey via the Internet (online) while data from the other group of participants was collected in the field by using printed questionnaires (offline). The findings of the comparative analysis of online and offline survey results are presented in the final part of the paper.

Keywords

  • Customer satisfaction
  • loyalty
  • services
  • banking
  • online vs offline research

JEL Classification

  • M39
  • G20
Open Access

Impact of Quantitative Easing on Purchased Asset Yields, its Persistency and Overlap

Published Online: 22 May 2017
Page range: 77 - 99

Abstract

Abstract

The main focus of this paper rests on the event study and SVAR analysis of quantitative easing that was initiated as a reaction to the financial crisis at the turn of 2008/2009 that finally ended in 2014. The Fed was virtually unable to continue with its conventional monetary policy regime in environment of zero-bound threshold, where there is no easy way to decrease main monetary policy rate any further. As a reaction to this limitation, the Fed started to practice quantitative easing and other unconventional measures. Event study examines changes in yields of purchased assets, namely US Treasuries, MBS and agency debt, and on two-day event window of the OIS and yield spreads quantifies imminent impact of QE announcements and relevant chairman speeches. Following VAR model and impulse-response functions, I examine the impact of QE and its persistency on purchased asset and on alternative asset classes in the framework of various transmission channels such as signalling, portfolio-balancing and liquidity channels. In this study I found non-negligible impact of QE on purchased assets in both models through all waves of QE and time persistency patterns in IRFs part. Furthermore, some evidence for portfolio-balancing channel and other related channels was found.

Keywords

  • monetary policy
  • quantitative easing
  • credit easing

JEL Classification

  • E520
  • E580
  • E440
Open Access

Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Published Online: 22 May 2017
Page range: 101 - 124

Abstract

Abstract

This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price differentials in Montenegro relative to the euro area. Furthermore, the paper examines whether changes in the real effective exchange rates, which in Montenegro’s case follow the path of price differentials, may have any influence on country’s competitiveness.

Keywords

  • euroisation
  • inflation differentials
  • real effective exchange rate
  • competitiveness

JEL Classification

  • E31
  • E52
  • F40
Open Access

Financing Structure and Liquidity Risk: Lesson from Malaysian Experience

Published Online: 22 May 2017
Page range: 125 - 148

Abstract

Abstract

This study examines the relationship between financing structure and bank liquidity risk. We compare the findings between Islamic and conventional banks for the case of Malaysia. We adopt four measures to represent financing structure; namely 1) real estate financing, 2) financing concentration, 3) stability of short-term financing structure and 4) stability of medium-term financing structure. Two BASEL III liquidity risk measures are tested; namely, liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) to measure short- and long-term liquidity risk, respectively. Based on panel data regression comprising 27 conventional and 17 Islamic banks from 1994 to 2014, our findings show that real estate financing and stability of short-term financing structure for Islamic banks are positively related to both liquidity risk measures. This implies that an increasing number of real estate financing and a stable short-term financing structure may increase Islamic banks’ short- and long-term liquidity risks. However, although real estate financing does not affect conventional banks’ liquidity risks, a stable short-term financing structure and increasing financing concentration can positively influence bank long-term liquidity risk. Our findings shed light crucial policy implications for regulatory bodies and market players in the context of liquidity risk management framework as well as the need to develop a separate framework between conventional and Islamic banking institutions.

Keywords

  • liquidity risk
  • financing structure
  • LCR
  • NSFR

JEL Classification

  • G28
  • G21
  • G32
Open Access

Estimating Probability of Default on Peer to Peer Market – Survival Analysis Approach

Published Online: 22 May 2017
Page range: 149 - 167

Abstract

Abstract

Arguably a cornerstone of credit risk modelling is the probability of default. This article aims is to search for the evidence of relationship between loan characteristics and probability of default on peer-to-peer (P2P) market. In line with that, two loan characteristics are analysed: 1) loan term length and 2) loan purpose. The analysis is conducted using survival analysis approach within the vintage framework. Firstly, 12 months probability of default through the cycle is used to compare riskiness of analysed loan characteristics. Secondly, log-rank test is employed in order to compare complete survival period of cohorts. Findings of the paper suggest that there is clear evidence of relationship between analysed loan characteristics and probability of default. Longer term loans are more risky than the shorter term ones and the least risky loans are those used for credit card payoff.

Keywords

  • Peer-to-peer market
  • Probability of default
  • Survival analysis
  • Vintage framework

JEL Classification

  • G11
  • G23
  • C41
8 Articles
Open Access

XBRL Implementation in the Banking Sector in Montenegro

Published Online: 22 May 2017
Page range: 5 - 22

Abstract

Abstract

The EXtensible Business Reporting Language – XBRL appeared in the beginning of the 21st century and it represents one of the most important technological innovations in financial reporting, collecting and exchanging data since the introduction of electronic spreadsheets. However, although the XBRL standard is globally accepted, and it has been proved to be a standard sui generis, the implementation of the standard has not yet become a reality in Montenegro and the region. In this context, the goal of this article is to evaluate a new and, for our conditions unexplored, area from the point of application of modern methods of accounting theory and practice, highlighting both positive and negative aspects. This research is getting prominence having in mind that the EU integration process which Montenegro has already started would affect all areas of socioeconomic life and development, especially in terms of accounting practices harmonization.

Keywords

  • XBRL
  • financial reporting
  • digitalization
  • Internet
  • accounting standards
  • management
  • company
  • stakeholders
  • globalization

JEL Classification

  • E58
  • M41
Open Access

The Impact of Financial Dollarization on Inflation Targeting: Empirical Evidence from Serbia

Published Online: 22 May 2017
Page range: 23 - 43

Abstract

Abstract

Serbia has applied inflation targeting against the backdrop of financial dollarization for almost a decade. In such circumstances, efficiency of monetary policy instruments decreases and begs the question of efficiency of the monetary regime efficiency issue. Although there is some empirical testing of financial dollarization effects on monetary policy performance in the inflation targeting regime for some countries, such studies for Serbia mostly cover periods of early application of the regime.

Therefore, the authors analysed financial dollarization effects on prices, i.e. exchange rate pass-through effect using Serbia as an example. The study concludes that although unpredictable changes in financial dollarization strongly affect nominal exchange rate, prices level is subject to moderate but persistent increase upon this shock.

Keywords

  • Serbia
  • financial dollarization
  • inflation targeting
  • pass-through effect

JEL Classification

  • E42 and E52
Open Access

Perspectives on Monetary Policy and Cost of Capital: Evidence from Turkey

Published Online: 22 May 2017
Page range: 45 - 64

Abstract

Abstract

The target of monetary policy is generally set as to create an environment of manageable employment and affordable long-term interest rates. However, priorities of central banks may differ depending on economic and financial circumstances of individual countries. Modern approaches to monetary policy transmission can be grouped under two headings, Money View and Credit View. The money view concentrates on interest rates to explain the effects of monetary policy on aggregate spending by creating an interest rate channel. The credit channel transmission approach focuses on the supply of credits by banks following a monetary policy shift in interest rates. In 2010, the Central Bank of Turkey (CBT) developed an interest rate corridor shaped by one-week and overnight repo lending to the financial banks to absorb excessive volatility caused by short-term capital inflows. Under this framework, the CBT implements its monetary policy in two ways; firstly it can alter the interest rates of weekly repo as well as O/N lending rate. Secondly, it can configure the funding structure it provides to the financial intermediaries. In such a framework, the interest rate transmission mechanism has been operated by two benchmark interest rates, one of which is the weighted average of the cost of funds provided by the CBT and the other is the interest rate in Borsa Istanbul (BIST) money market transactions at an overnight maturity. There is a strong co-movement between the interest rates and they are affected by the movements in the CBT lending rate in both directions. Interest rates applied to deposits and loans by banks are affected by the policy rate (CBT Average Funding Rate) and the market rate (BIST O/N Repo Rate).

Keywords

  • Monetary Policy
  • Transmission Channels
  • Money View
  • Credit View

JEL Classification

  • E52
  • E58
Open Access

Comparative Analysis of Results of Online and Offline Customer Satisfaction & Loyalty Surveys in Banking Services in Montenegro

Published Online: 22 May 2017
Page range: 65 - 76

Abstract

Abstract

The logic that customer satisfaction is the starting point of marketing and business activities is based on the assumption that customer satisfaction leads to customer loyalty, keeping in mind all of the positive effects that customer loyalty has on business success of an organization. Because of this, marketing and management theory and practice dedicate particular attention to the concepts of customer satisfaction and loyalty. In this paper we will use the surveys of customers of banking services not only to show the levels of their satisfaction and loyalty, but also to make a comparative analysis of data obtained through online and offline research. This approach was made possible because the research was carried out on a sample which was divided in two groups. All of the participants answered the questions from a unique questionnaire, however, one group took the survey via the Internet (online) while data from the other group of participants was collected in the field by using printed questionnaires (offline). The findings of the comparative analysis of online and offline survey results are presented in the final part of the paper.

Keywords

  • Customer satisfaction
  • loyalty
  • services
  • banking
  • online vs offline research

JEL Classification

  • M39
  • G20
Open Access

Impact of Quantitative Easing on Purchased Asset Yields, its Persistency and Overlap

Published Online: 22 May 2017
Page range: 77 - 99

Abstract

Abstract

The main focus of this paper rests on the event study and SVAR analysis of quantitative easing that was initiated as a reaction to the financial crisis at the turn of 2008/2009 that finally ended in 2014. The Fed was virtually unable to continue with its conventional monetary policy regime in environment of zero-bound threshold, where there is no easy way to decrease main monetary policy rate any further. As a reaction to this limitation, the Fed started to practice quantitative easing and other unconventional measures. Event study examines changes in yields of purchased assets, namely US Treasuries, MBS and agency debt, and on two-day event window of the OIS and yield spreads quantifies imminent impact of QE announcements and relevant chairman speeches. Following VAR model and impulse-response functions, I examine the impact of QE and its persistency on purchased asset and on alternative asset classes in the framework of various transmission channels such as signalling, portfolio-balancing and liquidity channels. In this study I found non-negligible impact of QE on purchased assets in both models through all waves of QE and time persistency patterns in IRFs part. Furthermore, some evidence for portfolio-balancing channel and other related channels was found.

Keywords

  • monetary policy
  • quantitative easing
  • credit easing

JEL Classification

  • E520
  • E580
  • E440
Open Access

Inflation in a Fully-Euroised Economy: Could Inflation Differentials Threaten Competitiveness?

Published Online: 22 May 2017
Page range: 101 - 124

Abstract

Abstract

This paper analyses inflation in Montenegro, a country which uses euro outside the euro area, and investigates the factors which contribute to price differentials in Montenegro relative to the euro area. Furthermore, the paper examines whether changes in the real effective exchange rates, which in Montenegro’s case follow the path of price differentials, may have any influence on country’s competitiveness.

Keywords

  • euroisation
  • inflation differentials
  • real effective exchange rate
  • competitiveness

JEL Classification

  • E31
  • E52
  • F40
Open Access

Financing Structure and Liquidity Risk: Lesson from Malaysian Experience

Published Online: 22 May 2017
Page range: 125 - 148

Abstract

Abstract

This study examines the relationship between financing structure and bank liquidity risk. We compare the findings between Islamic and conventional banks for the case of Malaysia. We adopt four measures to represent financing structure; namely 1) real estate financing, 2) financing concentration, 3) stability of short-term financing structure and 4) stability of medium-term financing structure. Two BASEL III liquidity risk measures are tested; namely, liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) to measure short- and long-term liquidity risk, respectively. Based on panel data regression comprising 27 conventional and 17 Islamic banks from 1994 to 2014, our findings show that real estate financing and stability of short-term financing structure for Islamic banks are positively related to both liquidity risk measures. This implies that an increasing number of real estate financing and a stable short-term financing structure may increase Islamic banks’ short- and long-term liquidity risks. However, although real estate financing does not affect conventional banks’ liquidity risks, a stable short-term financing structure and increasing financing concentration can positively influence bank long-term liquidity risk. Our findings shed light crucial policy implications for regulatory bodies and market players in the context of liquidity risk management framework as well as the need to develop a separate framework between conventional and Islamic banking institutions.

Keywords

  • liquidity risk
  • financing structure
  • LCR
  • NSFR

JEL Classification

  • G28
  • G21
  • G32
Open Access

Estimating Probability of Default on Peer to Peer Market – Survival Analysis Approach

Published Online: 22 May 2017
Page range: 149 - 167

Abstract

Abstract

Arguably a cornerstone of credit risk modelling is the probability of default. This article aims is to search for the evidence of relationship between loan characteristics and probability of default on peer-to-peer (P2P) market. In line with that, two loan characteristics are analysed: 1) loan term length and 2) loan purpose. The analysis is conducted using survival analysis approach within the vintage framework. Firstly, 12 months probability of default through the cycle is used to compare riskiness of analysed loan characteristics. Secondly, log-rank test is employed in order to compare complete survival period of cohorts. Findings of the paper suggest that there is clear evidence of relationship between analysed loan characteristics and probability of default. Longer term loans are more risky than the shorter term ones and the least risky loans are those used for credit card payoff.

Keywords

  • Peer-to-peer market
  • Probability of default
  • Survival analysis
  • Vintage framework

JEL Classification

  • G11
  • G23
  • C41

Plan your remote conference with Sciendo