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        <title>Journal of Central Banking Theory and Practice Feed</title>
        <link>https://sciendo.com/journal/JCBTP</link>
        <description>Sciendo RSS Feed for Journal of Central Banking Theory and Practice</description>
        <lastBuildDate>Sun, 10 May 2026 12:10:00 GMT</lastBuildDate>
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            <title>Journal of Central Banking Theory and Practice Feed</title>
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            <link>https://sciendo.com/journal/JCBTP</link>
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        <copyright>All rights reserved 2026, Central Bank of Montenegro</copyright>
        <item>
            <title><![CDATA[Bank Diversification and Performance Nexus: Theoretical and Empirical Insights from South Asia]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0008</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0008</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

The aims of the study include examining the relationship between assets, funding, income diversity, and bank performance using a panel dataset over the period ranging from 2011 to 2023 by applying a two-step system GMM procedure for South Asian banks. The findings reveal that diversity in funding sources and assets leads to decreases in the profitability of banks in South Asia. The findings imply that overdoing it in funding and asset diversity is not good for South Asian banks. However, the diversity in income sources causes the performance of South Asian banks to boost up. Implying that an increase in income sources causes an increase in the profits of South Asian banks. Moreover, the empirical analysis remains consistent for the outcome of well- and under-capitalized banks. The findings are also in line with the economics and finance theories, including portfolio diversification, resource-based theory, and agency hypothesis. The findings suggest that regulators, economists, policymakers, and managers should revise the composition of their banks’ assets and funding sources to optimize benefits in South Asian regions.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The “Lean vs. Clean” Debate in Monetary Policy: New Evidence]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0001</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0001</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

This paper explores the ongoing debate on the role of monetary policy in preventing and addressing financial crises, known as the “lean vs. clean” dilemma. The central question is whether central banks should act preventively to avoid financial bubbles and imbalances (the lean approach), or whether it is more effective to respond only after they burst, focusing on mitigating the consequences (the clean approach). Through a review of theoretical literature and historical experiences, the paper highlights the advantages and limitations of both approaches. Special emphasis is placed on post-crisis reforms and the role of macroprudential policy as a complementary instrument to monetary policy. The paper shows that neither approach offers a universally applicable solution, but places a slight emphasis on the lean approach and suggests that the new framework for monetary policy must include a combination of preventive measures, effective responses after a crisis outbreak, international coordination of central banks, as well as improvements in forecasting models and early warning systems.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Understanding Central Bank Profitability]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0002</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0002</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

Since the increases of policy interest rates in the years 2022-2023, a number of central banks are suffering significant losses from the materialisation of interest rate risk. These losses erode the capital buffers and raise questions about the cost-efficiency of monetary policy. This warrants a closer look at the topic of central bank profitability. What drives central bank profits? What is the problem with central bank losses exactly? And what possibilities do central banks have to influence their profits and manage public perception? In this paper we revisit these questions for central banks in general, with a particular focus on the Eurosystem and De Nederlandsche Bank.
Although central bank losses can be an accepted consequence of necessary monetary policy (risks), they are regrettable as they constitute public money that could have been otherwise used for public purposes such as education and healthcare. But even low (positive) profits are undesirable. In general, central bank profits contribute to maintaining a strong balance sheet and support financial independence from the government. A central bank should preferably generate sufficient income over time to grow its capital in line with GDP (Gross Domestic Product). Here, we use the concept of “capital” in a broad sense, i.e. shareholder capital and provisions, acting as risk buffer. This risk buffer should develop in line with GDP as that is roughly proportional to the underlying latent risks of the central bank from the economy and the banking sector.
Central bank profits are mainly driven by the monetary policy interest rates – which have little room for including “efficiency” considerations. However, central banks should understand the outlook of their profits under different (interest rate) scenarios. This is also important for Eurosystem national central banks and the ECB which are exposed to the financial consequences of the ECB’s monetary policy decisions via income and cost sharing arrangements. Some of the balance sheet items allow for profitability considerations to be included in their management. The central bank’s own investment portfolio is the most prominent example. With the significant losses of a number of central banks, it may be wise to consider profitability more explicitly in the central bank policies. This paper attempts to offer input on that question.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Green Trilemma of Banks and its Potential Solution: The Green Preferential Capital Requirements]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0009</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0009</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

The traditional trade-off between banks’ safety and income should be amended with a green factor creating the green trilemma. Banks must find the balance between the three mentioned goals. Firstly, we build up a formal model of the green trilemma and point out the need for incentives to support green lending. The introduction of green differentiated capital requirements can be a solution. However, there is little empirical experience about the application of this policy tool. Secondly, we assess the Green Preferential Capital Requirement Program (GPCRP) of the Central Bank of Hungary, which is a pioneer green supporting factor program. We measure the cost efficiency of this program. The cost is prudential, meaning that the benefit of prudential release is distributed between bank owners and green borrowers. The program’s unit cost is much below the current EU ETS prices. Our results underline the effectiveness of the program: without material increase in prudential risk, the GPCRP contributes to avoiding significant amounts of carbon emission.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Econometric Analysis of the Impact of Inflation Targeting on Macroeconomic Variables: New Keynesian Model]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0004</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0004</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

Many central banks adopted inflation targeting under pressure from the IMF. Adoption of inflation targeting happened on pretty favourable macroeconomic terms whose distinctive features were the absence of supply shocks, low budget deficit and foreign currency access. It was a ‘period conducive to price stability’ with inflation on a downward trajectory in many countries, especially developed ones, even before the introduction of inflation targeting. That could have contributed to efficiency of inflation targeting considering other monetary strategies. The most widely used model in designinig monetary policy under inflation targeting is a macroeconomic model of a small open economy from the group New Keynesian model. The results of the econometric analysis in this paper show that inflation targeting is an inefficient monetary strategy in the face of negative supply shocks (financial crises, pandemic, rising energy prices, tariffs), as it leads to rising interest rates, falling GDP, and rising unemployment. The results of the econometric analysis in this paper show that inflation targeting is an inefficient monetary strategy in the face of negative supply shocks (financial crisis, pandemic, rising energy prices, tariffs, etc.), which leads to rising interest rates, falling GDP, rising unemployment, and ultimately to an “inflationary pandemic”.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Is the Money Supply Endogenous or Exogenous? A Panel Data Investigation of Developing Asian Countries]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0010</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0010</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

This study investigates whether the money supply (MS) is endogenously or exogenously determined in 10 developing Asian countries. The study implemented the Panel FMOLS, DOLS, and ARDL/PMG approaches with quarterly panel data from 1980Q1 to 2020Q4. The results reveal that bank lending and income positively influence the MS, while the inflation rate has a negative impact. These findings support the idea that the MS is endogenously determined while rejecting the view of the Monetarists that the MS is exogenously determined or that there is a “helicopter drop” of money. Central banks should espouse a flexible approach to monetary policy that considers the broader economic environment. Recognizing the endogeneity of the MS can lead to more prudent strategies for achieving sustainable economic outcomes.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Bank Non-Performing Loan Determinants: A Comparison of European and African Countries]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0006</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0006</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

The study investigates the determinants of bank non-performing loans (NPL) in European and African countries, focusing on 32 European and African countries from 2010 to 2021. The results based on the two-stage least squares regression methodology show that the number of commercial bank branch, bank liquid reserves to bank assets ratio, inflation rate, exchange rate, real interest rate and the lending rate are significant determinants of bank NPL in the full sample. Size of domestic private credit, bank capital to asset ratio, bank liquid reserve to bank asset ratio, unemployment rate, inflation rate, exchange rate, real interest rate and lending rate are significant determinants of bank NPL in European countries. Bank capital to asset ratio, bank liquid reserve to bank asset ratio and inflation rate in Africa are significant determinants of bank NPL in African countries. The implication of the results is that the determinants of bank NPL in European countries are not necessarily the drivers of bank NPL in African countries.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Does Corruption Affect Non-Performing Loans in Central and Eastern Europe?]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0005</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0005</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

The objective of this study is to examine the effect of corruption on non-performing loans in 17 Central and Eastern European countries from 2004 to 2021. The study investigates the influence of corruption on the incidence of non-performing loans while controlling for macroeconomic, bank-specific, and governance-related factors. The analysis is based on panel data, and the fixed effects method is applied. The results indicate that several variables, including corruption, unemployment, loan-to-deposit ratio, voice and accountability index, and credit growth significantly affect non-performing loans. The findings contribute to the existing literature by examining the role of external factors in the persistence of non-performing loans, revisiting this issue in the specific context of the Central and Eastern European region.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Ockham’s Razor: How to Implement CBDC Simply: The Idea of a Digital Currency Bank]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0003</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0003</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

Central banks that intend to implement Central Bank Digital Currency (CBDC) must decide whether to leverage blockchain as their technology or introduce digital currency on their own terms. We argue that the first option is not a good idea, as it implies the application of a very complicated, non-intuitive, and expensive solution, which cannot meet some central banks’ expectations. Instead, we propose a special entity – a Digital Currency Bank (DCB) – as a method to implement CBDC. The DCB would use traditional information technology successfully employed by banks for years, instead of the intricate blockchain technology used to implement cryptocurrencies.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Procyclicality of Credit Cycle of Islamic and Conventional Banks During COVID-19: Measuring Amplitude and Frequency Indicators]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2026-0007</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2026-0007</guid>
            <pubDate>Mon, 12 Jan 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[

Procyclicality in the banking sector is one of the important indicators that may encourage the systemic risk in the banking system. This study examines banking behavior of the economy during the COVID-19 pandemic and analyze the amplitude and frequency of the credit cycle of Islamic and conventional banks. This study is primarily focused on the credit property of Islamic and conventional banks from 2014 to 2020 with application of Ordinary Least Square (OLS), Frequency Base Filter Analysis (FBF) and Turning Point Analysis. Our study finds that the size of Islamic bank’s amplitude is larger than the size of conventional bank’s amplitude. This is characteristic of Islamic banks based on the pattern of financing of the real sector. Meanwhile, conventional banks encourage the creation of bubble capital because it is related to the credit pattern grounded in speculative activities based on the interest system. Therefore, conventional banks need to encourage credit patterns based on capital. Meanwhile, the size of the frequency of Islamic banks has a longer frequency measure than conventional banks, but the number of cycles formed is the same as a perfect cycle.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Does Bank Capital Increase the Productivity of the Banking Industry? A Critical Review]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0021</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0021</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

The purpose of this paper is to assess the level of productivity of the banking sector in the Central African Economic and Monetary Community based on the evolution of the level of minimum bank capital. This study used data from the annual reports and bulletins of the Central African Banking Commission, the database of the Bank of Central African States and the World Bank’s Worldwide Government Indicators for 1998 to 2020. We opted for the estimation of the Malmquist index of total factor productivity based on data envelopment analysis on the one hand, and an estimation of the channels influencing productivity using the generalised method of moments in system on the other hand. This study finds that the minimum capital requirement for banks has a significant positive impact on industry productivity. In addition, the ownership structure and the socio-political framework influence the productivity of banks in the Central African Economic and Monetary Community.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Fintech as an Enabler of Digital Economy Development in the Balkan Countries]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0028</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0028</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

This paper examines the role of FinTech in advancing digitalization across Balkan economies, analysing key drivers of FinTech adoption and its impact on digital economy development. Using a Principal Component Analysis (PCA) approach, along with descriptive statistics, ANOVA, and cluster analysis, the study identifies the principal factors influencing FinTech penetration and digital financial engagement.
The research utilizes a dataset encompassing key indicators of digital adoption, and digital sectors development across seven Balkan countries—Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Albania, and North Macedonia. Specific variables include digital payment penetration, mobile banking usage, internet access, ATM density per 100,000 adults, POS terminals per 100,000 adults, FinTech startup growth index, regulatory quality, financial literacy, and trust in digital finance.
Findings reveal significant disparities in FinTech adoption across the region, shaped by differences in regulatory policies, digital infrastructure, and population readiness to embrace digital financial solutions. While FinTech serves as the backbone of the digital economy by providing seamless and efficient financial services, the digital transformation is very modest in Balkan countries. Regression analysis further validates that FinTech adoption significantly influences the development of the digital economy. The findings demonstrate a strong positive correlation between the extent of FinTech adoption and the overall growth of the digital economy in the region.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Impacts of Liquidity Creation on Banking Stability: An Empirical Research in ASEAN-5]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0030</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0030</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

Using both GMM estimation and the Bayesian approaches during the period of 2007 to 2021 to examine the impacts of liquidity creation (LC) on banking stability (Bank Stability-BS) on the sample of 53 banks in 5 Southeast Asian countries (ASEAN-5), the author has become a pioneer that carries out the first empirical study applying two approaches, which provides a broader perspective on the effects of liquidity creation on bank stability. Positive impacts of Liquidity Creation (LC) on the financial stability revealed from both approaches have contributed important management implications to the banking industry in ASEAN-5 in particular, and emerging and developing economies in general. The research also enriches the literature overview on the relationship between Liquidity Creation (LC) and bank stability.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Carrot and Stick: Impact of Regulations, Subsidies, and Obligations on the Development of Cashless Payments in Poland]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0025</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0025</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

Between 2012 and 2024, Poland—once a laggard in cashless payments among EU countries—underwent a profound transformation. The per capita number of cashless transactions at physical points of sale increased more than eightfold, rising from approximately 30 to over 250 per year, surpassing the EU average. While the number of payment cards per capita grew by about 40%, payment terminals per one million inhabitants increased almost fivefold, from 7,500 to 36,700. This paper adopts a two-stage analytical approach to examine whether policies introduced over the past decade influenced the growth in payment terminals and cards, and ultimately, the volume of cashless transactions. These policies include regulations of the interchange fee level, a program to subsidize payment terminals for merchants, and the introduction of the legal obligation for merchants to accept cashless instruments. Our findings indicate that the first two policies—interchange fee regulation and terminal subsidies—positively affected the expansion of the acceptance network. In turn, this expansion had a statistically significant impact on the growth of cashless payment usage.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Interest Rate Policy and the Assets and Financial Results of Central Banks in Selected European Union Member States]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0026</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0026</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

In reaction to the 2008 global financial crisis, central banks made large-scale asset acquisitions using their reserves. This unusual monetary strategy has persisted throughout the pandemic, and in certain cases beyond 2022. By then, central bank balance sheets had grown by up to tenfold. Then, as interest rates climbed sharply, these enormous holdings began to suffer significant losses. These losses vary qualitatively depending on whether the central bank purchased domestic or international assets, resulting in transfers within or between countries.
The aim of the research undertaken in this article is to examine the impact of changes in the interest rates of selected central banks on the value of their assets in the period 2015-2023. The European Central Bank was selected for the study as the central bank of 20 euro area member states and the central banks of selected European Union countries still outside the euro area (Czech Republic, Denmark, Hungary, Poland, Sweden). The research used research methods based on literature studies in the field of finance and banking as well as statistical and econometric methods (Granger causality test and Vector Autoregression Model). The research used quarterly data from the Bank for International Settlements.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Tax Cut-Induced Wage Growth as a Source of Inflation in a Dollarized Economy – Review of the Case of Montenegro]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0022</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0022</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

Available studies suggest that fiscal policy measures aimed at increasing disposable income growth may have an impact on inflation. As inflation in Montenegro in 2022 was higher compared to the euro area, several studies were conducted to estimate the impact of external and domestic inflation factors. They identified a positive relationship between external factors (changes in import prices) and domestic factors (fiscal policy measures), as well as between these factors and inflation. However, they did not quantify the impact of any component, particularly of the fiscal programs implemented in Montenegro. This study aims to estimate the effects of fiscal policy programs on growth in disposable income implemented in 2022, which in turn led to increased household deposit growth. The empirical analysis based on estimated correlation coefficients between household deposits’ annual change, import prices, and CPI in Montenegro (yearly data from 2014 to 2024) shows a strong positive linear relationship between changes in household deposits and CPI and also between changes in import prices and CPI, with a stronger correlation between change in import prices and CPI. This leads to the conclusion that deposit and import price growth influence inflation, with different impacts on its intensity.
To estimate the impact of fiscal measures on inflation in Montenegro in 2022, we apply an accounting approach and use a dynamic mathematical model based on the quantitative theory of money. The study shows that inflation in Montenegro in 2022 was partly driven by household deposit growth, influenced by wage growth (in the part where wages grew above productivity growth), which contributed to half of the rate of price growth. The growth in prices of imported products contributed the remaining half of the inflation. The increased disposable income led to growth in demand deposits and time deposits of the households (up to one-year time deposits may be used as transaction money) which, according to the quantitative theory of money, led to price growth as it was not followed by similar production growth. During the same period, net public debt increased, which was associated with declining reserves financed through external borrowing in earlier periods, explaining the source of money supply growth.
This study contributes to the literature by offering an additional approach to analyzing short-term inflation sources in dollarized countries during a short period or after specific fiscal instruments have been implemented. The accounting approach, combined with a mathematical dynamic model, provides the opportunity to investigate inflation determinants in more detail, giving a more in-depth view than the analysis conducted by applying the standard econometric models.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Can Digitalisation Mitigate Financial Exclusion? Investigation of Regional Disparities]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0024</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0024</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

In this study, we use data from the World Bank Global Findex database for 2021 to investigate both voluntary and involuntary reasons for financial exclusion in an era of increasing digitalisation. Our analysis reveals that socio-demographic characteristics play a significant role in determining the reasons for financial exclusion. The results confirmed that increased access to the Internet could mitigate involuntary reasons for financial exclusion, mainly in middle- and low-income countries where the digitalisation boom has occurred in the last few years. The findings also highlight significant regional disparities: involuntary reasons for exclusion dominate in regions such as Sub-Saharan Africa, Latin America, and the Caribbean, while voluntary are more prevalent in areas like the Middle East and North Africa. These results underscore the issue’s complexity, showing that applying a single policy universally applicable to all countries is impossible. Each government and its regulators must consider regional specificities when defining policies to eliminate financial exclusion. Such targeted policies are crucial for reducing social inequalities, fostering broader financial inclusion, and promoting sustainable economic development.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Does Central Bank Independence Affect Inflation?]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0027</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0027</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

The objective of this paper is to analyze the impact of central bank independence on inflation in Western Balkan countries, from 2010q1 to 2022q4. In this paper the panel Autoregressive Distributed Lags (ARDL) model for six Western Balkan countries is used to analyse the effects of central bank independence on inflation. Results show that central bank independence has a negative effect on inflation in countries studied. These findings help management of banks and policymakers to find other monetary tools to reduce inflation and develop more effective regulations. The paper recommends central banks to use central bank independence to fight inflation.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Monetary Policy of the ECB and its Spillover Effects to Central and Eastern Europe. Rolling Window VAR Approach]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0023</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0023</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

This paper investigates the impact of the monetary policy of the European Central Bank (ECB) on economic activity in the euro area, as measured by industrial production, and price developments, as well as the spillover effects of this policy to three Central and Eastern Europe Countries: Czechia, Hungary, and Poland for the period 2000–2023 (CEE-3). The method of principal component analysis is employed to account for the bank’s overall monetary policy stance and to disentangle the main factors driving the macroeconomic situation. In particular, two main factors are identified. The first pertains to the conventional monetary policy of the ECB, and the second represents its non-standard measures. Moreover, the overall monetary conditions index is calculated. Next, the use of the vector autoregression technique shows that the ECB’s monetary policy exerted a significant impact on euro area inflation, while the impact on industrial production was less pronounced. The results also indicate that the ECB’s monetary policy exerted some significant international spillovers. Nonetheless, they varied with regard to time (as indicated by rolling window analysis), countries, and macroeconomic variables affected.
]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Sensitivity of Emerging Market Corporate Borrowing Spreads to Global Financial Conditions]]></title>
            <link>https://sciendo.com/article/10.2478/jcbtp-2025-0029</link>
            <guid>https://sciendo.com/article/10.2478/jcbtp-2025-0029</guid>
            <pubDate>Mon, 01 Sep 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[

Global financial conditions (GFC) considerably influence emerging markets (EM) firm dynamics. Albeit a vast literature on the vulnerability of EM firms to GFC, no study assesses the sensitivity of EM firm credit risk to GFC by looking at the sensitivity of borrowing spreads of EM firms to GFC. We fill this gap by calculating borrowing spreads for nearly 12000 non-financial firms from 13 EMs, analyzing the sensitivity of the spreads to GFC, and documenting the role of country fundamentals and firm characteristics. Using three levels of data—firm-level microdata, country-level macro data, and global financial data— and panel regressions, we document a clear pattern of EM firms’ vulnerability to the GFC by illustrating significant global financial effects on the credit risk premium of EM firms. Specifically, we find that the firm-level borrowing spreads widen once the GFC tightens, suggesting that the perceived riskiness of EM firms, i.e., the credit risk premium, increases when the GFC tightens. We highlight the importance of country fundamentals and firm characteristics in the sensitivity of EM firms’ borrowing spreads to GFC: (i) EM firms with weaker characteristics display more sensitivity to GFC; (ii) EM firms from risky EM countries are more exposed to the effects of GFC. Finally, we also find that currency depreciation increases the firm-level borrowing spreads, which is consistent with the risk channel of the exchange rate.
]]></description>
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