Journal of Economics - Obsahy ročníkov

This paper explores the impact of the Liquidity Coverage Ratio (LCR) as a binding constraint on banks. Using a panel dataset encompassing 707 banks located in EU countries over the years 2012 to 2018, we analyze the phased introduction of the LCR, starting at 60% in 2015 and reaching full implementation at 100% in 2018. Our research reveals a positive effect of the LCR on liquidity buffers and a negative impact on the loan-to-deposit ratio, indicating strengthened liquidity positions. Contrary to expectations, estimations across five bank types demonstrate a significant LCR impact on all categories. Additionally, the study investigates the adverse effects of low or negative interest rates, particularly affecting cooperative and savings banks. Based on these findings, we recommend that policymakers maintain a vigilant approach to liquidity regulations, ensuring their adaptability to diverse bank types and considering measures to alleviate the negative impact of prolonged low or negative interest rate environments on specific bank categories.

This study explores the presence of a nonlinear relationship between concentration, indicated by market share, and banking stability, represented by the Z-score, in relation to different levels of bank capitalization, assessed by the capital adequacy ratio in accordance with Basel standards, in the Euro Area countries from 2009 to 2019. By employing the panel smoothing transition regression model, we do not find the statistical significance of the coefficients when bank capitalization is low. However, the concentration-stability paradigm is confirmed when capitalization exceeds the current minimum regulatory requirements. These findings suggest that strengthening bank capitalization is crucial for enhancing stability in the Euro Area banking sector, as higher capitalization enables banks to better withstand negative economic shocks during adverse conditions.

Population aging and low birth rates are linked to the problem of unsustainability of ongoing pension systems. As demographic predictions follow unfavorable developments, adjusting such pension systems is inevitable. This paper discusses introducing child-related benefits into pension system models and their advantages and disadvantages. The model with child-related pension benefits dependent on the average wage is examined concerning the effects of the child factor on individual fertility and private savings. Subsequently, we estimate the size of the child factor in the current setting of Slovakia’s pension system and several other alternatives. Finally, the optimal setting of the above pension system model is presented and compared with the presented alternatives. We show that the current setting of the pension system can be brought closer to the optimum by, for example, more generous awarding of personal wage points for raising children.

This study aims to fill the gap in recent research on the effect of quantitative easing proxied by the broad money growth on economic growth in Economic and Monetary Union (EMU) countries. Specifically, we aim to determine an optimum level of quantitative easing in specific countries that enabled the highest possible economic growth from 2010 to 2019. The results based on the system generalized method of moments (GMM) estimation suggest the inverted U-shaped curve relationship between the broad money growth and GDP per capita growth/GDP growth with the parabola peak between 6.24% and 8.08%. After exceeding this level of broad money growth, the effect on economic growth appears negative, implying that excessive usage of quantitative easing hampered EMU economic growth. Therefore, we assume that sporadic and moderate quantitative easing could be beneficial in times of recession and in the absence of inflation pressures. Otherwise, the risk of stagflation would become real.