Financial Regulation and Government Revenue

• Tác giả: Nicola Limodio
• Ngôn ngữ: eng
• Ký hiệu phân loại: 658.15 Financial management
• Thông tin xuất bản: World Bank, Washington, DC, 2016
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 298868
• Chủ đề: 1. AUCTION; 2. BANKING REGULATION; 3. CAPITAL MARKETS; 4. DEPOSIT; 5. GOVERNMENT SAVINGS

Tóm tắt

 Financial regulation affects government revenue whenever it imposes both the mandatory quantity and price of government bonds. This paper studies a banking regulation adopted by the National Bank of Ethiopia in April 2011, which forces all private banks to purchase a fixed negative-yield government bond in proportion to private sector lending. Having access to monthly bank balance sheets, a survey of branch costs and public finances documentation, the effect of the policy on government revenue can be tracked. This is compared to three plausible revenue-generating alternatives: raising funds at competitive rates on international markets
  distorting the private lending of the state-owned bank
  and raising new deposits through additional branches of the state-owned bank. Three main results emerge: the government revenue gain is moderate (1.5-2.6 percent of the tax revenue)
  banks comply with the policy and amass more safe assets
  banks' profit growth slows without turning negative (from 10 percent to 2 percent).