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        <title>Journal of Central Banking Theory and Practice Feed</title>
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        <item>
            <title><![CDATA[Financial Technologies and Market Volatility: Dynamic Connectedness between FinTech and Traditional Markets]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0024</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study examines the dynamic volatility spillover between financial technologies and traditional and alternative financial markets. The analysis utilizes daily data covering the period from January 2018 to March 2026 for FinTech ETFs, the Nasdaq, Bitcoin, and gold markets. Interconnectivity among financial markets was analyzed using the time-varying parameter VAR (TVP-VAR) connectedness approach. The findings indicate the presence of a moderate and time-varying connectivity structure among the markets. In particular, a strong interaction was observed between the FinTech and Nasdaq markets, while Bitcoin was found to play a significant role as a volatility transmitter during certain periods. The gold market, on the other hand, generally exhibited more stable and limited interactions. Additionally, the study found that financial market linkages increase during periods of crisis and uncertainty. These results highlight that the transmission of volatility across financial markets has a dynamic structure and that portfolio diversification strategies should be evaluated accordingly. By examining FinTech markets alongside other major asset classes, the study provides a timely and comprehensive contribution to the literature.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Carbon Emissions and Inflation Dynamics in the Eurozone: An Empirical GMM Approach]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0028</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Climate change and the transition toward a low-carbon economy have intensified the debate on the interaction between environmental factors and macroeconomic stability. While recent studies have mainly focused on how monetary policy can address climate-related risks, much less attention has been devoted to the potential influence of environmental indicators on inflation. This paper examines the relationship between carbon emissions and inflation dynamics across 20 Eurozone countries over the period 2010–2023. Using annual panel data, we estimate a dynamic model based on the System Generalized Method of Moments (System GMM) to account for inflation persistence and potential endogeneity. The empirical framework incorporates carbon emissions per capita together with final energy consumption, the EUR/USD exchange rate, and the trade balance as key macroeconomic control variables. The baseline specification does not reveal a statistically significant relationship between carbon emissions and inflation. However, robustness analysis based on a first-differenced System GMM specification identifies a significant negative association, suggesting that environmental factors may influence inflation dynamics under alternative model specifications. Energy consumption and exchange rate movements also emerge as important determinants of inflation.These findings contribute to the growing literature linking climate-related variables and monetary policy by highlighting the relevance of incorporating environmental indicators into inflation analysis while emphasizing the need for cautious interpretation and further empirical investigation.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Determinants of Inflation in a Fully Euroized Regime: Dynamic Evidence from Montenegro (2008–2025)]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0025</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper examines the key determinants of inflation in Montenegro under conditions of full euroization during the period 2008–2025. Despite the extensive theoretical and empirical literature on inflation, the role of domestic and external factors affecting inflation in small euroized economies remains insufficiently explored, particularly with regard to the aggregate demand transmission channel and the fiscal impulse in the case of Montenegro. The analysis is based on a regression specification using annual data, including lagged inflation, real GDP growth, euro area inflation (HICP), changes in oil prices, and the fiscal impulse measured as the change in the primary balance expressed as a percentage of GDP. The findings indicate that imported inflation from the euro area is strongly associated with domestic price dynamics, although the empirical specification does not allow strict separation between imported inflation effects and common global shocks. Although the fiscal impulse displays a positive sign, it does not exhibit stable statistical significance across different model specifications and robustness checks. The empirical results suggest that inflation in Montenegro, as a small and open euroized economy, is largely driven by external factors, while the inflationary effect of fiscal policy through the aggregate demand channel remains inconclusive and sensitive to model specification.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Time-Varying Impacts of Structural Oil Price Shocks on Economic Policy Uncertainty in China: The Role of a Hybrid Monetary Policy Tools Framework]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0023</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper examines the time-varying responses of China’s economic policy uncertainty (EPU) to five structural oil-price shocks, with particular attention to the responses of price- and quantity-based monetary policy instruments. Using quarterly data from 2007Q2 to 2025Q1, we estimate a TVP-VAR-SV model that incorporates both the interest rate gap and the money supply gap to capture the coexistence of price- and quantity-based policy tools in China. The results show that only aggregate supply shocks elicit a statistically significant EPU response, while the other oil shocks are mainly associated with output fluctuations. Monetary policy instruments respond primarily to output dynamics, while their median effects on EPU remain limited. Time-varying impulse responses reveal substantial heterogeneity across major events, including the global financial crisis and the COVID-19 pandemic, and indicate shifts in the relative responses of monetary policy instruments during China’s transition toward a more price-based policy framework. These findings underscore the importance of distinguishing among oil shock sources and strengthening policy communication during periods of monetary policy transition.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Inflation, Income Inequality, and Energy Poverty: Assessing the Moderating Role of Central Bank Independence in Sub-Saharan Africa]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0026</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper contributes to the literature on inflation and income inequality by bringing the issue of energy deprivation into the picture. The study assesses the interconnections between inflation, energy poverty, and income inequality across SSA countries while accounting for the potentially moderating role of CBI in a panel of 24 countries spanning from 2005 to 2022. We employ Driscoll-Kraay fixed effects and Method of Moments Quantile Regression (MMQR) estimators to control for cross-sectional dependence and distributional heterogeneity in the data. The results show that inflation significantly increases income inequality, stressing its regressive effects in the region. In turn, higher income inequality is found to exacerbate energy poverty by reducing households’ access to clean fuels and modern energy technologies. Institutional governance consistently reduces inequality and improves energy access, emphasizing its importance in development outcomes. Central bank independence plays a dual role: while it is associated with lower average income inequality, it amplifies the inequality-increasing effect of inflation. However, its moderating effect on the inflation– energy poverty nexus is weak in mean regressions but becomes more relevant in highly deprived situations. The heterogeneity analysis reveals that these relationships vary across the distribution of inequality and energy poverty. The effect of inequality on energy poverty is stronger at lower and median quantiles, while institutional effects become more pronounced at higher deprivation levels.Similarly, the role of central bank independence and inflation differs across quantiles, confirming substantial distributional asymmetries. These results suggest that macroeconomic stability, institutional quality, and energy access are deeply interconnected, and their effects are highly context-dependent. The study concludes that addressing inequality and energy poverty in Sub-Saharan Africa requires coordinated monetary, fiscal, and institutional policies that explicitly consider distributional heterogeneity.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Time-Varying Effects of Monetary Policy on House Prices in China: Evidence from 2008 to 2025 with the TVP-VAR Approach]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0029</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper investigates the dynamic and nonlinear effects of monetary policy on house prices in China from 2008 to 2025. Utilizing a Bayesian Time-Varying Parameter Vector Autoregression (TVPVAR) model with stochastic volatility, we estimate the evolution of policy transmission in terms of shock magnitude and time-lag. By conducting 20,000 MCMC simulations, the study identifies significant structural shifts in the transmission mechanism. The results show that while the stimulative effect of targeted housing credit expansion was dominant during the 2009 and 2016 cycles, its marginal effectiveness has diminished toward historical lows in the 2023–2025 period. Simultaneously, the inhibitory effect of interest rate hikes has become increasingly shallow, suggesting severe balance sheet constraints and weak expectations in the current housing market rather than a classic “liquidity trap.” The inclusion of stochastic volatility underscores the role of market uncertainty in dampening the efficiency of traditional policy instruments.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Central Banks, Expectations and Collective Psychology - Limits and Possibilities of Behavioral Monetary Policy]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0030</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper presents a critical review of the concept of animal spirits and its importance in shaping contemporary monetary policy. Starting from Keynes’s theoretical assumptions and contributions in the field of behavioral macroeconomics, the paper analyzes the ways in which psychological factors such as trust, optimism, fear and panic affect economic cycles, decision-making processes and the application of monetary policy measures. The methodological framework of the paper is based on a comprehensive analysis of theoretical and empirical research, including behavioral macroeconomic models, expectations experiments and examples from central bank practice, which enables the integration of different approaches and evaluations of different arguments for and against the active management of collective expectations and sentiment at the macroeconomic level. The author’s special contribution is reflected in the systematization of the literature and a critical review of the results so far, with a special emphasis on how market, institutional and cognitive aspects influence the creation of monetary policy. In this way, the paper goes beyond classical approaches that rely exclusively on rational expectations and offers a much broader framework for understanding the role of central banks in stabilizing the economy. The scientific significance of the topic stems from the fact that behavioral monetary policy is becoming increasingly important in conditions of global crises and financial instability, while traditional models often fail to adequately explain the occurrence of extreme economic fluctuations. The paper concludes that the concept of “animal spirits” can no longer be treated only as a metaphor, but also as a measurable and analytically significant phenomenon that requires systematic attention from policymakers and researchers, which ultimately opens up space for the development of new institutional solutions and research directions.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Effect of Monetary Policy on Non-Performing Loans in Sub-Saharan Africa: A Panel Vector Autoregressive Approach]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0027</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Banks play a vital role in a country’s financial system through their intermediation activities, which support economic development. However, the rise in non-performing loans (NPLs) has jeopardized the performance of banks in Sub-Saharan Africa (SSA). Moreover, the behavior of key macroeconomic factors and shocks to monetary policy are closely linked to this issue. This study examines the impact of monetary policy on NPLs in SSA using a panel vector autoregressive model, based on quarterly data from 23 countries spanning 2008Q1 to 2023Q4. The findings reveal that monetary policy shocks significantly affect NPL levels in SSA. Additionally, excessive domestic and external borrowing, inflationary pressures, and exchange rate volatility have substantial consequences for NPL accumulation. This study offers valuable insights into how macroeconomic factors interact to create banking stress and fragility, ultimately undermining financial stability in the region. It recommends that monetary authorities and governments implement credible monetary policies and maintain a stable macroeconomic environment to safeguard the financial sector.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Robust Estimation of Credit Shocks in Peru during the COVID-19 Crisis]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0022</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The Covid-19 pandemic introduced an unprecedented disruption in macroeconomic activity while credit continued to expand in several economies due to large policy interventions aimed at preserving financial intermediation. In Peru, this episode represented a clear deviation from the historical relationship between credit growth and economic activity. This paper studies the transmission of credit supply and credit demand shocks using a Bayesian structural VAR estimated with monthly macro-financial data from 2010 to 2024. To account for the extreme volatility observed during the pandemic, the identification combines sign and zero restrictions with information from higher-order moments and heteroskedasticity. The results indicate that, conditional on the maintained identifying assumptions, credit supply shocks are associated with stronger responses of economic activity during and after the pandemic than in the pre-pandemic period, while credit demand shocks display weaker and less persistent responses. These findings suggest that credit conditions became a more important driver of macroeconomic fluctuations during episodes of heightened uncertainty, although the framework does not separately identify policy-induced credit shocks.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Central Bank Digital Currencies and Bank Deposit Dynamics: Evidence from Cross-Country Difference-in-Differences Analysis]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0021</link>
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            <pubDate>Thu, 27 Aug 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The emergence of central bank digital currencies (CBDCs) represents one of the most significant innovations in contemporary monetary systems. As central banks explore digital forms of sovereign money, an important question concerns how CBDC introduction may affect the structure of financial intermediation, particularly the role of commercial bank deposits. Because CBDCs constitute a direct claim on the central bank, their availability may alter the allocation of liquid assets held by households and firms and potentially influence bank funding structures.Theoretical research emphasizes that the macro-financial implications of CBDCs depend critically on their design features, including remuneration policies, holding limits, access rules, and distribution models. These design parameters determine the relative attractiveness of CBDCs compared with traditional bank deposits and therefore shape the magnitude of potential deposit substitution. However, empirical evidence on the real-world effects of CBDC implementation remains limited due to the recent emergence of CBDC projects and the substantial heterogeneity in their design and operational frameworks across countries.This paper investigates whether the activation of a CBDC is associated with changes in commercial bank deposit holdings using a cross-country panel dataset covering 30 economies over the period 2015–2024. The empirical analysis employs a Difference-in-Differences framework with staggered treatment timing, complemented by event-study estimates and alternative estimators designed to address identification challenges in two-way fixed-effects models. To partially capture cross-country heterogeneity related to CBDC design and adoption environments, the specification incorporates interaction terms reflecting differences in financial digitalization and payment system structure.The results indicate that CBDC activation is associated with a statistically significant decline in bank deposits as a share of GDP, with stronger effects observed in digitally advanced financial systems.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Do Islamic and Conventional Indices React Differently to Monetary Policy Surprises?]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0016</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper tests whether Islamic equity indices exhibit systematically different sensitivities to high-frequency monetary policy surprises than their matched conventional benchmarks, and whether any Islamic–conventional wedge is universal or provider-specific. We construct daily return differentials (Islamic minus conventional) in USD total returns, expressed in basis points, for three global index families: FTSE All-World vs FTSE IdealRatings All-World Islamic; MSCI World vs MSCI World Islamic; and S&amp;P Global BMI vs S&amp;P Global BMI Shariah. We regress the differential on orthogonalised FOMC monetary policy surprises and two ECB surprises: a Target component measured around the press release (OIS-1M) and a Forward-Guidance component measured around the press conference (OIS-2Y). Shocks are mapped to close-to-close returns over an event window ([t-1, t, t+1]), with inference based on Newey–West (HAC) standard errors; event-only and ECB “Monetary Event” (ME) robustness checks are reported. Results show significant, opposite-signed announcement-day effects for FTSE and S&amp;P: Islamic indices relatively outperform on Target surprises and underperform on Guidance surprises (larger magnitudes for S&amp;P), while FOMC surprises are not significant. MSCI differentials are weak and inconclusive. Collapsing ECB shocks into ME largely nets out same-day effects, with a modest (t+1) Guidance effect in event-only estimates. The findings are consistent with distinct funding-cost (Target) versus policy-path/term-premium (Guidance) channels and with provider-level composition differences.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Financial Integration and Growth: Are the Effects Shaped by Country Income Levels and Trade Liberalization?]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0018</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The study explores the nexus between economic growth and international financial integration, mediated by country income levels and trade liberalization, across 108 countries. To check the endogeneity of the lagging variable in the model, the two-step GMM robust panel data estimator is used, while the robustness of the S-GMM estimates is examined by the PMG estimator.The findings of this study reveal that (i) the effects of international financial integration (IFI) on economic growth are mediated by the level of trade liberalization within country income groups, indicating that countries with a higher level of trade liberalization relative to their income group peers show a positive impact of financial integration on economic growth; (ii) the effects of IFI on economic growth are influenced by the income level of countries within their respective income groups, whereas countries with higher income levels relative to their peers in the same income group demonstrate a positive impact of financial integration on economic growth. The study's primary contribution is to fill a gap in the literature by confirming the beneficial effects of trade liberalization and by identifying the country's income level as a mediator in the relationship between international financial integration and economic growth.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Artificial Intelligence in Central Banking: A Nexus for the Future]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0012</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The emergence of artificial intelligence (AI) marks a transformative shift in central banking, presenting new opportunities for economic forecasting, financial supervision, and operational efficiency. Traditionally, central banks have depended on structured frameworks and statistical models, but AI technologies—particularly machine learning and generative models—are redefining these core functions. AI models enhance central banks’ ability to predict economic trends, detect financial irregularities, and streamline administrative tasks, supporting informed decision-making in complex, data-driven environments. Despite these advantages, AI adoption introduces significant challenges, including data security concerns, systemic risk, and algorithmic bias. Central banks must navigate these risks through robust data governance, ethical AI frameworks, and strategic human capital investments. This article examines AI's applications, risks, and strategic requirements in central banking, illustrating how early adopters like the European Central Bank and BIS Innovation Hub leverage AI for forecasting and regulatory compliance. By fostering international collaboration and transparency, central banks can responsibly harness AI’s potential to strengthen financial stability and maintain public trust. This balanced approach underscores AI’s role in enabling central banks to adapt to an evolving global financial landscape while safeguarding ethical standards and regulatory integrity.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Monetary Policy Effectiveness under a Currency Board Regime: Evidence from Bosnia &amp; Herzegovina]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0013</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper examines the effectiveness of monetary policy transmission to bank liquidity in countries operating under constrained monetary regimes, drawing on the case of Bosnia and Herzegovina’s currency board arrangement. Using monthly bank-level data (2006 - 2024), we apply a two-step empirical framework combining a Panel Vector Autoregression (PVAR) and a Panel Vector Error Correction Model (PVECM) to analyse the short and long-run effects of reserve requirements and the remuneration of excess reserves on bank liquidity. Our findings indicate that liquidity dynamics are largely driven by banks’ internal portfolio decisions, while monetary instruments can influence liquidity in the short term, but their overall impact is modest and considerably outweighed by internal bank-level factors such as lending intensity and foreign asset exposure. A stable long-run relationship is confirmed between liquidity, policy tools, and balance sheet fundamentals. Although the study considers bank size and ownership structure, the estimated effects represent system-wide averages. Nonetheless, the observed patterns are broadly consistent with the hypothesis that large and foreign-owned banks may exhibit lower sensitivity to domestic monetary impulses. The results suggest that in a currency board system, the transmission of monetary impulses is constrained and highly dependent on structural banking characteristics.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Banknote Demand in the European Union: Different Seasonal Patterns]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0017</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[A model based on evolving splines is proposed to address seasonal patterns in daily cash demand observed in banknotes issued by the national central banks of Spain and Germany. Statistical indexes are applied to measure and compare weekly, monthly and yearly seasonal variations in these two series. Changes in these seasonal patterns are identified. The main finding is that seasonal variations are less relevant in the German series. By contrast, in the Spanish case, the magnitude of seasonal variations is increasing. Therefore, high levels of dissimilarity are observed between both cases for each one of the three seasonal patterns. However, the lower values of complementarity indexes suggest that the shapes of these seasonal patterns are not so different.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Threshold Effects in the FED’s Monetary Policy Before and After Inflation Targeting]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0011</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The present study uses the threshold SVAR models to analyse the periods before and after inflation targeting, covering monthly data between 1992 and 2024. It examines whether the Fed reaction function based on the expanded Taylor equation with the US economic and policy uncertainty index is asymmetric with respect to the inflation and output gap. The results indicate that when inflation is below the 2% threshold, the Fed reacts to economic instability rather than inflation and the output gap. The empirical findings show that once inflation exceeds this level during the inflation targeting period, the Fed reacts to inflation in the long term, output gap in the short term, and economic instability in both the short and long term. Also, when inflation is greater than 2%, the Fed reacts more to expected inflation than to current inflation. Moreover, in post-inflation-targeting period, when inflation rises above this level, the Fed reacts to positive shocks in current inflation with a three-month lag, whereas its reaction to expected inflation is instantaneous. According to the output gap threshold value, it was determined that the Fed's reactions were symmetrical before inflation targeting and asymmetrical afterwards. Empirical findings show that the Fed reacts to economic instability before inflation targeting, to both output gap and economic instability in the short term after inflation targeting, and to inflation in the long run. The results show that the asymmetric effects of the Taylor rule are due to the asymmetric preferences of the Fed.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Diversification for Stock Markets: Commodities or Crypto]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0019</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The question that an asset could serve as a good store of value has been brought up a number of times, especially due to major market shocks. Despite the long-held belief that gold serves as a safe haven, a growing body of contemporary literature perpetually assesses this notion. Whether cryptocurrencies, namely Bitcoin as the most well-known of them, as an asset, can serve as a safe haven or hedge gains traction in research. This study investigates the relationship of gold and Bitcoin to S&amp;P 500 stock index and the possibility that these might serve as a safe haven in respect to stock indexes. The results show that, when analysed the safe haven properties of either gold or Bitcoin, there is evidence that Bitcoin has negative and statistically significant relationship with the stock market making it good proponent for safe haven. On the other hand, gold has non-positive correlation with the stock market, which adds to the basic readings that it is good hedge asset.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Offline NLP Assistants for Internal Knowledge Access in a Central Bank: Proof-of-Concept Systems for Semantic Search and HR Chatbot]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0014</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper presents two offline, on-premise NLP proof-of-concept assistants built on a shared architecture for internal knowledge access in the Central Bank of Bosnia and Herzegovina: (i) a semantic document search tool for internal Word/PDF repositories and (ii) an HR chatbot that applies retrieval-augmented generation (RAG) over indexed HR policies and procedures. Rather than proposing a novel NLP method, the paper contributes by documenting a reusable offline architecture for institutional AI assistants in a security-constrained central banking environment and by providing pilot evidence on how established semantic retrieval and RAG techniques can be adapted to strict requirements of confidentiality, data sovereignty, and governance. The semantic search assistant combines exact phrase matching with embedding-based retrieval and hybrid re-ranking, while the HR chatbot generates source-grounded answers using locally hosted language models under explicit governance constraints, including B/H/S-only output, strict fallback behaviour, and transparent display of retrieved passages. Pilot results indicate that hybrid retrieval offers the most reliable performance across representative internal queries, while the HR chatbot demonstrates the feasibility of document-grounded employee support under offline institutional constraints. The findings provide preliminary evidence that offline NLP assistants can improve access to internal institutional knowledge while remaining compatible with the security and operational risk requirements typical of central banking environments.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[Assessing Artificial Intelligence Readiness in Central Banks of the Western Balkans]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0015</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study evaluates the institutional readiness of central banks in the Western Balkans to adopt and integrate Artificial Intelligence (AI) into their operations. While AI is rapidly transforming central banking functions globally, enhancing forecasting, regulatory oversight, and operational efficiency, its adoption by central banks of the Western Balkans remains underexplored. Using a structured framework adapted from Jöhnk et al. (2021), this research assesses five key readiness dimensions: strategic alignment, resources, knowledge, organizational culture, and data infrastructure; and supplements this with additional questions to gain deeper insights into the perceived practices, expectations, benefits and risks of AI by central bankers. Insights were drawn from senior professionals across six central banks in the region. The findings reveal generally low yet uneven levels of readiness for AI adoption, with particular deficiencies in data infrastructure and the strategic integration of AI. The benefits of using AI in these central banks are widely recognized, including improvements in economic forecasting and task automation. However, key barriers persist, including institutional inertia, fragmented data systems, and a lack of internal expertise. The study emphasizes the importance of aligning AI strategies with core mandates, investing in capacity-building, and fostering regional cooperation as ways to ensure that the central banks in the region can effectively fulfil their mandated functions.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Assessing the Impact of Monetary Policy on Financial Stability through Non-Performing Loans]]></title>
            <link>https://reference-global.com/article/10.2478/jcbtp-2026-0020</link>
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            <pubDate>Tue, 12 May 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study investigates the relationship between monetary policy and financial stability by examining non-performing loans (NPLs) as a key indicator of credit risk in nine Southeast European countries over the period 2007–2022. The empirical framework is built on an unbalanced panel dataset and employs fixed effects (FE) estimation, feasible generalized least squares (FGLS), and panel-corrected standard errors (PCSE) to address potential econometric challenges and enhance the robustness of results. The findings reveal that lending interest rates are a significant determinant of NPLs, indicating that tighter monetary conditions increase repayment burdens and amplify credit risk. By contrast, the official exchange rate does not show a consistent effect on loan performance, a result that may reflect relative stability in currency markets and the presence of regulatory safeguards in the region. An unexpected but noteworthy outcome is the negative association between unemployment and NPLs, which could be attributed to more cautious borrowing behaviour in periods of economic uncertainty and the role of government support mechanisms. These results highlight the complex transmission channels through which monetary policy interacts with financial stability, while also underscoring the importance of country-specific conditions in shaping these dynamics. The study contributes to the literature by providing evidence from a region marked by transition, crisis episodes, and external vulnerabilities, offering insights into how monetary policy can be calibrated to safeguard the resilience of the banking sector.]]></description>
            <category>ARTICLE</category>
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