Nexus between financial innovations, remittances and credit performance: Evidence from augmented ARDL and nonlinear ARDL

This paper examines the macro-economic and bank-specific factors affecting non-performing loans in commercial banks. Using 47 listed commercial banks from six countries, namely 19 banks from Nigeria, 14 banks from Benin, 3 banks from Burkina Faso, 3 banks from Gambia, 3 banks from Guinea, and 5 banks from Liberia for the period 2008 to 2019, fixed and random effect model was used. The Hausman test favored the selection of fixed effect model, and it was found from the estimation that the liquidity ratio, capital adequacy ratio and inflation rate significantly affect non-performing loans. As a result, it is advised that banks depend not only on their ability to achieve the capital adequacy ratio, but also guarantee that loans are thoroughly scrutinized before being issued to beneficiaries. Bank managers should guarantee that banking staff is not simply awarding loans to secure their jobs by accumulating deposits from consumers at the price of the bank’s long-term stake. In addition, the economies of West Africa should keep their inflation rates low so that repayment of loans on time is cheap and realistic.

Acknowledgment
I would like to appreciate Fezile Nonjabulo Gcwabaza for love and support throughout this research project.

The research paper outlines general problems of ensuring the continuity of the reproductive process in the Ukrainian economy with the help of long-term bank lending, and the problem of improving the accounting of non-performing long-term bank loans in the country was urged. The importance of solving this problem is conditioned by the significance of this group of loans in the loan portfolios of Ukrainian banks in terms of the current crisis economic situation in Ukraine. The objective of the research paper is to analyze the current state and trends in the methodology and practice of accounting of non-performing long-term bank loans in Ukraine, as well as formulate and substantiate directions for improving this methodology and practice. In the process of fulfilling the tasks of this reserch paper, the significance of the objective accounting of non-performing long-term loans of banks was substantiated; the status and changes in the accounting system of non-performing loans of Ukrainian banks were analyzed; the importance of European experience in this area was urged, which has being consistently adopted; and the scheme of allowing for changes in a share of non-performing bank loans when determining loan price was suggested. The ways to improve the accounting system of non-performing long-term loans in Ukrainian banks were suggested.

Proper understanding and monitoring of household savings are crucial to effective macroeconomic policies targeted at balanced and sustainable economic growth. Remittances, as a financial flow of foreign capital, can create a vital part of private savings. This paper is aimed at identifying whether remittances contribute to household savings in the Baltics along with other macroeconomic variables in a post-crisis period, during which the relative smoothing and convergence of economic development of the Baltic countries after the sharp financial distress in 2009 can be observed. The following methods of panel data regression analysis were employed: fixed effects and OLS. The results of the econometric analysis based on both fixed effects and OLS methods reveal that remittances are an essential driver of savings in the Baltics in the long run. Savings in the Baltics are not significantly influenced in the short term by sharp economic fluctuations, but are dependent on demographic factors and foreign capital, which can bring instability in economic development and financial flows of the region.

Acknowledgment
This research was funded by Vega research project no. 1/0037/20: “New challenges and solutions for employment growth in changing socio-economic conditions”, and VEGA research project no. 1/0287/19 “Integration of immigrants in EU countries from the point of view of migration policies”.