Macro-prudential banking regulation, interest rate spread and the conduct of monetary policy in South Africa
- Shayanewako,Varaidzo Batsirai
- Authors: Shayanewako,Varaidzo Batsirai
- Date: 2018
- Subjects: Monetary policy Economic stabilization
- Language: English
- Type: Thesis , Doctoral , D.Com
- Identifier: http://hdl.handle.net/10353/14093 , vital:39843
- Description: The joint implementation of macro-prudential regulatory and monetary policies is necessary for modern banking systems not only to achieve optimal interest rate spread but to cushion the economy against the catastrophic effects of systemic risk. Therefore, the understanding of the interconnection between macroprudential regulation, interest rate spread and monetary policy, supported with empirical evidence, enables economies to build health and sound financial systems and achieve desirable growth rates. Thus, this study utilises the Vector Error Correction (VEC) mechanism to empirically investigate the interconnection between macro-prudential regulation, interest rate spread and monetary policy in South Africa. Quarterly time series data for the period from 1994 to 2016 was employed with the New Keynesian Dynamic Stochastic General Equilibrium (NKDSGE) model as the framework for analysis. The findings of this study suggest that a negative relationship exists between interest rate spread, macro-prudential regulation and monetary policy in South Africa. Moreover, the systems equation provided evidence that a short run causality running from macroprudential regulation to monetary policy is prevalent in South Africa. The empirical model of the study was found to be desirable as evidence of no serial correlation, no ARCH effect and non-normality in residuals was detected. Evidence from this study further suggest that interest rate spread has a dampening effect on monetary policy, but in the long-run this effect seems reversible in South Africa. As a result, this study recommends that caution should be taken on the appropriate selection of measures of macro-prudential regulation and its tool-kit as it can be used to disguise the symptoms of a lax monetary policy. This implies that the South African Reserve Bank (SARB) should sternly supervise and regulate the extension of credit by commercial banks in line with its inflation targeting monetary policy rule in order to achieve financial stability and ensure optimal interest rate spread that can stimulate the economy to growth.
- Full Text:
- Date Issued: 2018
- Authors: Shayanewako,Varaidzo Batsirai
- Date: 2018
- Subjects: Monetary policy Economic stabilization
- Language: English
- Type: Thesis , Doctoral , D.Com
- Identifier: http://hdl.handle.net/10353/14093 , vital:39843
- Description: The joint implementation of macro-prudential regulatory and monetary policies is necessary for modern banking systems not only to achieve optimal interest rate spread but to cushion the economy against the catastrophic effects of systemic risk. Therefore, the understanding of the interconnection between macroprudential regulation, interest rate spread and monetary policy, supported with empirical evidence, enables economies to build health and sound financial systems and achieve desirable growth rates. Thus, this study utilises the Vector Error Correction (VEC) mechanism to empirically investigate the interconnection between macro-prudential regulation, interest rate spread and monetary policy in South Africa. Quarterly time series data for the period from 1994 to 2016 was employed with the New Keynesian Dynamic Stochastic General Equilibrium (NKDSGE) model as the framework for analysis. The findings of this study suggest that a negative relationship exists between interest rate spread, macro-prudential regulation and monetary policy in South Africa. Moreover, the systems equation provided evidence that a short run causality running from macroprudential regulation to monetary policy is prevalent in South Africa. The empirical model of the study was found to be desirable as evidence of no serial correlation, no ARCH effect and non-normality in residuals was detected. Evidence from this study further suggest that interest rate spread has a dampening effect on monetary policy, but in the long-run this effect seems reversible in South Africa. As a result, this study recommends that caution should be taken on the appropriate selection of measures of macro-prudential regulation and its tool-kit as it can be used to disguise the symptoms of a lax monetary policy. This implies that the South African Reserve Bank (SARB) should sternly supervise and regulate the extension of credit by commercial banks in line with its inflation targeting monetary policy rule in order to achieve financial stability and ensure optimal interest rate spread that can stimulate the economy to growth.
- Full Text:
- Date Issued: 2018
Rural-urban migration and its impact on rural development in Nigeria
- Authors: Abizu, Odion Stanley
- Date: 2018
- Subjects: Rural development Rural-urban migration -- Nigeria Rural poor
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10353/13815 , vital:39714
- Description: This thesis focuses on the developmental impact of rural-urban migration in Nigeria. While, recognising the negative impact of rural-urban migration, the study argues that in order to benefit internal migrants as well as rural development, there must be a paradigm shift to focus on how the benefits of migration on development can be achieved. It is proposed that rural-urban migration occurs as a response to economic, education, health, social and environmental factors. The challenges confronting rural areas are urban bias development paradigm pursued by the successive governments resulting in rural underdevelopment that exacerbates the rural urban disparity. And the neglect of agriculture in rural areas resulting from the discovery of oil in Nigeria. The study revealed that flawed policies adopted by successive Nigerian governments led to joblessness, entrenched social inequality and opportunities. One of the outcomes of these short-sighted policies was rural underdevelopment, which accelerated rural-urban migration in Nigeria. However, the study also demonstrates that the income flows from the migrants to the various rural households has contributed to improvement in the living standard of the households. The fragmentary approaches to rural development that is currently the case in Nigeria would not generate the required level of development and growth needed in the rural communities to improve the living standard. Thus, there is need for a policy framework in Nigeria, which would encourage the private sector to play a vital role in contributing their part in the provision of infrastructural facilities in the rural communities. Although this thesis is a case study of the impact of rural-urban migration on rural development in Nigeria, it can serve to appreciate the role migration can play in promoting development both in rural and urban areas in Nigeria and other Saharan Africa countries.
- Full Text:
- Date Issued: 2018
- Authors: Abizu, Odion Stanley
- Date: 2018
- Subjects: Rural development Rural-urban migration -- Nigeria Rural poor
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10353/13815 , vital:39714
- Description: This thesis focuses on the developmental impact of rural-urban migration in Nigeria. While, recognising the negative impact of rural-urban migration, the study argues that in order to benefit internal migrants as well as rural development, there must be a paradigm shift to focus on how the benefits of migration on development can be achieved. It is proposed that rural-urban migration occurs as a response to economic, education, health, social and environmental factors. The challenges confronting rural areas are urban bias development paradigm pursued by the successive governments resulting in rural underdevelopment that exacerbates the rural urban disparity. And the neglect of agriculture in rural areas resulting from the discovery of oil in Nigeria. The study revealed that flawed policies adopted by successive Nigerian governments led to joblessness, entrenched social inequality and opportunities. One of the outcomes of these short-sighted policies was rural underdevelopment, which accelerated rural-urban migration in Nigeria. However, the study also demonstrates that the income flows from the migrants to the various rural households has contributed to improvement in the living standard of the households. The fragmentary approaches to rural development that is currently the case in Nigeria would not generate the required level of development and growth needed in the rural communities to improve the living standard. Thus, there is need for a policy framework in Nigeria, which would encourage the private sector to play a vital role in contributing their part in the provision of infrastructural facilities in the rural communities. Although this thesis is a case study of the impact of rural-urban migration on rural development in Nigeria, it can serve to appreciate the role migration can play in promoting development both in rural and urban areas in Nigeria and other Saharan Africa countries.
- Full Text:
- Date Issued: 2018
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