Overcoming the loan-to-deposit ratio by a financial intermediation measure-A perspective instrument of financial stability policy

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F21%3A39917566" target="_blank" >RIV/00216275:25410/21:39917566 - isvavai.cz</a>

Result on the web

<a href="https://www.sciencedirect.com/science/article/abs/pii/S0161893821000545" target="_blank" >https://www.sciencedirect.com/science/article/abs/pii/S0161893821000545</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.jpolmod.2021.03.012" target="_blank" >10.1016/j.jpolmod.2021.03.012</a>

Result language

angličtina

Original language name

Overcoming the loan-to-deposit ratio by a financial intermediation measure-A perspective instrument of financial stability policy

Original language description

In cognizance of the role that the traditional loan-to-deposit (LTD) ratio fulfils for financial stability policy, the paper proposes extending this metric of liquidity and funding towards measuring attainment in financial intermediation. The proposed metric, financial intermediation measure (FIM), is a normative indicator and amends the descriptive nature of the LTD ratio, and is thus more suited to the needs of macroprudential regulation of financial systems. The metric is grounded in ideas of data envelopment analysis and is developed in conjunction with a data set on structural indicators provided by the World Bank. The FIM focuses upon the banking part of financial intermediation and measures whether a financial system is successful in transforming (bank) deposits into loans subject to feasibility restrictions applied to both the banking and securities markets. Utilization of the FIM is demonstrated for 48 financial systems of the world using data from 1993 to 2016 under different classifications applied to financial systems. The demonstration shows that the FIM is useful also for performance assessments of market-based financial systems without distinction. (c) 2021 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Policy Modeling

ISSN

0161-8938

e-ISSN

—

Volume of the periodical

43

Issue of the periodical within the volume

5

Country of publishing house

US - UNITED STATES

Number of pages

19

Pages from-to

1051-1069

UT code for WoS article

000704359500009

EID of the result in the Scopus database

2-s2.0-85107421292