Impact of monetary policy on lending and deposit rates in Pakistan: Panel data analysis

The study estimates impact of monetary policy (discount rate) on lending and deposit rates in Pakistan using bank type data from November 2001 to March 2011. The study finds evidence of long run relationship between lending and discount rate but deposit rate is not cointegrated with discount rate, monetary policy instrument. The study also finds an increase in the lending rate pass through rate during restricted monetary policy times (2005-2010), whereas deposit rate pass through remains same. The study finds that overall banks pass on only 20% impact of a change in discount rate to the lenders in first month implying it is not complete. There is also significant difference in various bank types pass through rates. The pass through of deposit rate is further low at 0.16 as revealed by short run analysis. It implies that the effectiveness of monetary policy is limited in Pakistan.Discount rate, pass-through, monetary policy

Are domestic banks' pass through higher than foreign banks? Empirical evidence from Pakistan

This study contributes to the literature by estimating Interest Rate Pass Through (IRPT) using Pakistani aggregate banks’ lending and deposit rate data. Lending and deposit rates are estimated to be sluggish in terms of their response to a change in monetary policy rate. There is also evidence of asymmetry in the pass through of four types of banks (i.e., privatized, nationalized, foreign and specialized). Overall, the domestic banks’ pass through is estimated to be higher than that of foreign bank. Although the IRPT is estimated to be incomplete, the degree of lending rate pass- through is not very low. This study provides evidence of an increase in the adjustment speed when the lending rate is below equilibrium after January 2005. However, there was no significant change in the pass through after January 2005 which coincided with the constant increase in the Treasury bill rate by the State Bank of Pakistan.Monetary policy, Treasury Bill rate, pass thropugh

Security Policy Management for a Cooperative Firewall

Increasing popularity of the Internet service and increased number of connected devices along with the introduction of IoT are making the society ever more dependent on the Internet services availability. Therefore, we need to ensure the minimum level of security and reliability of services. Ultra-Reliable Communication (URC) refers to the availability of life and business critical services nearly 100 percent of the time. These requirements are an integral part of upcoming 5th generation (5G) mobile networks. 5G is the future mobile network, which at the same time is part of the future Internet. As an extension to the conventional communication architecture, 5G needs to provide ultra-high reliability of services where; it needs to perform better than the currently available solutions in terms of security, confidentiality, integrity and reliability and it should mitigate the risks of Internet attack and malicious activities. To achieve such requirements, Customer Edge Switching (CES) architecture is presented. It proposes that the Internet user’s agent in the network provider needs to have prior information about the expected traffic of users to mitigate maximum attacks and only allow expected communication between hosts. CES executes communication security policies of each user or device acting as the user’s agent. The policy describes with fine granularity what traffic is expected by the device. The policies are sourced as automatically as possible but can also be modified by the user. Stored policies will follow the mobile user and will be executed at the network edge node executing Customer Edge Switch functions to stop all unexpected traffic from entering the mobile network. State-of-the-art in mobile network architectures utilizes the Quality of Service (QoS) policies of users. This thesis motivates the extension of current architecture to accommodate security and communication policy of end-users. The thesis presents an experimental implementation of a policy management system which is termed as Security Policy Management (SPM) to handle above-mentioned policies of users. We describe the architecture, implementation and integration of SPM with the Customer Edge Switching. Additionally, SPM has been evaluated in terms of performance, scalability, reliability and security offered via 5G customer edge nodes. Finally, the system has been analyzed for feasibility in the 5G architecture

Monetary policy restriction and dividend behavior of Pakistani firms: an empirical analysis

Studies upon impact of macro variables on firm’s dividend policy are very limited and specifically rare in Pakistan perspective. Main purpose of this research paper is to observe impact of restricted monetary policy on dividend behavior of Pakistani firms. During restricted monetary policy, cost of external funds increases and firms prefer to utilize internal funds leading to reduction in dividend payout. Behaviour of 100 listed firms, selected purposefully, has been observed for the period from 2001 to 2009 by using Lintner’ modified model.. During the research period of nine years, monetary policy has been gone through both loose and tight phases. Proposed model is dynamic one as lagged dependent variable has been used as explanatory variable. Due to certain limitations with selection of monetary policy instrument, overall stance of State Bank of Pakistan (SBP) in its annual reports has been used as a dummy variable in the model. Results of all the three estimations reveal almost same results. First lagged dividend has been proved to be most deterministic factor of dividend policy followed by current earnings. Monetary policy and lagged dividends interactive variables provide mixed results. First interactive variable has negative coefficients in all three, fixed effect, random effects and GMM, models but with insignificant p values. Second monetary policy interactive variable has positive coefficients with significant values in random effects and GMM model. Firms seem to follow relatively stable dividend policies with lower adjustment factor. As model is dynamic, GMM estimation is preferred. Monetary policy has not been observed as significant determinant of dividend policy of Pakistani firms.Dividend payment, Monetary Policy

Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries

Financially repressed economy cannot grow with an increasing growth rate. That’s why most of the developing countries move toward liberalized financial system. The basic objective of this paper is to provide a comparative analysis of Pakistan, China, and India financial sector liberalization and its impact on macroeconomic performance. This study uses Johansen co integration to provide cross country evidence of long run relationship between macroeconomic variables and financial openness. Results show that there is long run relation among financial openness and macro economic performance in all three countries. Financial liberalization has positive and significant effect on Pakistan macroeconomic performance while negative and significant effect on china economy. The relationship in India is positive but not significantFinancial liberalization, financial depth. Economic growth

Financial Networks: Analysis, Visualization and Interpretation

博士学位論文の要旨及び審査結果の要旨 (Summary of Thesis(DR))othe

Credit constraints for microfinance sector in Pakistan, an analysis of internal and external factors

Microfinance is considered to be an effective tool for poverty alleviation, employment generation, income generation and income equality. It is a financial service provided to poor people who do not have any other source of funds or have access to financial services. The purpose of this research paper is to determine the credit constraints that are facing by microfinance sector in Pakistan. The data is collected through structured questionnaires from 250 respondents who are employees of MFBs/ MFIs keeping in view three broad categories of theoretical framework including internal factors having sub variables like operational cost, HR capacity, innovation and external factors having sub variables like competition, language, awareness as independent variables and a dependent variable having sub variable that is credit constraints for microfinance sector. Regression analysis has been used to determine the impact of independent variables i.e. internal and external factors on dependent variable that is credit constraints. The study found that there is a significant impact of internal and external factors on the credit constraints facing the microfinance sector. Based on the results it is recommended that concerned authorities should give due importance to all sub variables of internal and external factors in order to minimize the issue of credit constraints facing the microfinance sector

David A. Robalino, et al. (eds.). Pensions in the Middle East and North Africa: Time for Change. Washington, D. C.: The World Bank, 2005. pp.xxviii+253. Price not given.

This report by David A. Robalino, et al. on Pensions in the Middle East and North Africa: Time for Change evaluates the current mandatory pension systems formulated in the 1970s in the region. Since the publication of Boersch-Supan Palacios and Tumbarello (1999), cited in the volume, the Word Bank has been providing technical assistance to the countries of the region in the area of pension reforms. According to Schwarz and Demirguc-Kunt (1999), also cited in the volume, more than 60 countries have introduced pension reforms in the last 20 years. The financial problems and the fiscal burden of these generous schemes was the common motivation for the reforms undertaken. The present book by David Robalino and his co-authors is the extension of those previous works published five years ago

Economic Research of Corruption: Its Consequences

In current age, corruption has become a major socio-economic problem. It is one of the most prominent barriers in the way to economic development. The major focus of this paper is on the economic research of corruption. The first part of this paper brings various definitions by renowned authors and typologies like intellectual, political, economic, and bureaucratic corruption. In the second part, this paper presents different impacts of corruption through economy. It contains research on the effect of corruption on the Gross domestic product (GDP), the level of investment in public and private projects, governmental expenditure, capital flows and Foreign Direct investment, bureaucracy, resource allocation, and foreign aid

Sources of finance available for SME sector in Pakistan

Small and medium enterprises (SMEs) are engines of growth for developed and developing countries. Developing countries like Pakistan must pay special attention towards its development and growth which is very essential for country's economic growth, economic development, employment generation, income equality, poverty alleviation, entrepreneurial culture etc. But unfortunately this sector is under performing due to many barriers including improper infra-structure, regulatory requirements difficulties, shortage of skilled HR, non competitive products, lack of entrepreneurial expertise, small scope of business and risk of default but above all access to finance is the major barrier that is facing by SMEs. This research paper examines the sources of finance (formal and informal) that are available for SMEs and also highlights the issues that create hindrance in effective flow of financial facilities to SMEs especially SEs (Small Enterprises). The research paper concludes that sufficient and easy availability of finance is the key to success for SMEs in Pakistan