In this paper, we provide the first cross-country empirical evidence on the relationship between economic policy uncertainty (EPU) and banks’ interest income activities (measured using the net interest income). Using bank-level panel data of 3,252 banks in 16 economies over the period...

Using an Autoregressive Distributed Lag (ARDL) technique, and the Granger causality test, this paper examines the dynamic relationship between economic growth, the size of the informal economy, and trade openness in Ghana. Our results provide evidence of a positive and bidirectional causality...

This paper aims to examine and compare the profitability of Islamic and conventional banks located in 20 African countries over the period 2009-2018. Based on a sample of 21 Islamic banks and 297 conventional banks, this study shows that Islamic banks perform better than conventional banks in...

Does the lending channel of monetary policy operate under a negative interest rate policy (NIRP)? The purpose of this study is to shed light on the existence of a lending channel of monetary policy under NIRP. To do so, we aim to provide an in-depth analysis of the relationship between NIRP and...

Faced with a potential zero lower bound on deposit interest rates, how do banks pass onthe fall in net interest income due to negative interest rates? This paper aims to investigatethe different channels of banks’ responses to negative interest rates using a detailedbreakdown of the profit and...

Using the Difference-in-Differences method and data from 5115 banks located in 74 countries over 2009-2018, we investigate the effects of negative interest rate policy (NIRP) on customer deposit rate. Our results suggest that banks affected by NIRP reduced their customer deposit rate. We also...

As a topical issue, this paper studies the responses of world stock market indices to the ongoing war between Ukraine and Russia. Using daily stock market returns in a sample of 94 countries and covers the period from 22 January 2022 to 24 March 2022, we consistently document a negative...

This study provides empirical evidence on the impact of bank capital on lending and securities holdings in Asian banks. Using a panel data set of 370 banks from 15 Asian countries over the period 2010-2018, our findings suggest that the increase in bank capital reduces lending supply, especially...

Faced with a potential zero lower bound on deposit interest rates, how do banks pass on thefall in net interest income due to negative interest rates? This paper aims to investigate thedifferent channels of banks’ responses to negative interest rates using a detailed breakdownof the profit and...