This paper examines whether mobile money adoption can induce informal firms to formalize, an aspect that has been overlooked in the empirical literature. Despite several regulatory reforms such as simplifying tax systems and reducing the costs and time needed to register a business, informality...

This paper investigates the willingness and barriers to adoption of mobile money merchant accounts by the informal businesses in Burkina Faso. We use business survey data from a quasi-experimental opening of mobile money merchant accounts that we conducted in March 2021. Our data enable us to...

We examine prospects for a monetary union in the East African Community (EAC) by developing a stylized model of policymakers' decision problem that allows for uncertain benefits derived from monetary,financial and fiscal stability, and then calibrating the model for the EAC for the period...

We depart from the fact that in Europe, unlike the leverage ratio, risk-based capital ratios are formally under capital regulation with specified minimum thresholds to be respected. Building on this difference, we study their comparative persistence and convergence. For this purpose, we borrow...

Since the subprime crisis, the regulatory framework for bank regulation has undergone substantial changes with the release, in December 2010, of the Basel 3 document. The new framework reintroduces a simple capital ratio, the leverage ratio, which is added to the more sophisticated capital...

This paper investigates bank portfolio composition under Basel II where the amount of required capital is determined by bank?s own risk assessment. We particularly show that in presence of asymmetric information between the bank and the supervisor, it has incentives to understate its risk taking...

We aim to assess how accurately accounting and stock market indicators predict rating changes for Asian banks. We conduct a stepwise process to determine the optimal set of early indicators by tracing upgrades and downgrades from rating agencies, as well as other relevant factors. Our results...