This paper evaluates the effects of a macroprudential policy of regulatory easing implemented amidst a contractionary monetary policy in Brazil. The intervention, carried out by the Central Bank in the third quarter of 2014, relaxed reserve requirements on time deposits to stimulate bank credit for vehicle financing. Using a Difference-in-Differences approach with fixed effects by credit modality and month, the analysis is based on monthly disbursement data for consumer loans from 2011 to 2018. Twelve rolling monthly windows are used to capture the dynamic evolution of the policy’s effects. Results based on a synthetic control group indicate statistically significant and economically meaningful positive impacts in the months immediately following the intervention, peaking at BRL 2 billion in December 2014. From January 2015 onward, a gradual decline is observed, though the effects remain positive through the end of the analysis period. The paper concludes that the policy has a temporary offsetting effect on the contractionary monetary tightening effect on vehicle credit. The study contributes to the literature by offering empirical evidence from a concrete episode of sectoral macroprudential easing under unfavourable macroeconomic circumstances, providing insights into the determinants of its effectiveness in emerging markets.
This study investigates the socio-demographic factors associated with readiness to use AI-driven tools in financial decision-making. It uses data from a representative survey of Poles and conceptualises an AI readiness index. It then estimates the relationships between socio-demographic characteristics and this index using an ordinary least squares (OLS) regression model. Additionally, robustness checks are conducted with heteroskedasticityrobust standard errors and multiple imputation. The OLS results were supplemented by one-way Analysis of Variance (ANOVA) with Tukey’s Honestly Significant Difference (HSD) post hoc tests to identify groups’ differences. The results demonstrate that gender, age, education, and income are significantly associated with consumers’ readiness to use AI-based financial tools, while place of residence is not. Males, young people, highly educated individuals, and higher-income groups exhibit significantly greater AI readiness. Age is negatively associated with AI readiness, revealing generational differences, whereas income shows that readiness increases markedly among upper-middle and high-income groups. Education effects are driven mainly by low readiness among respondents with vocational education. The findings demonstrate that socio-demographic characteristics remain important drivers of consumers’ readiness to use AI-enabled tools for personal financial decision-making.
The green mortgage market in Poland has received limited research attention. Therefore, this article aims to present the specifics of the green mortgage market in Poland. To thoroughly investigate the issue, in-depth interviews were conducted with 12 banking sector representatives, each with varying experience and professional roles. The study’s findings revealed that there is no formal definition of green mortgages, which hinders both banks and their customers. Currently, green mortgages are rarely granted due to their limited economic benefit to borrowers and the small number of residential properties that qualify. For banks, green mortgages present an opportunity to expand their customer base, reduce credit risk, and decarbonise their mortgage portfolios. However, offering them involves higher costs. Finally, the study highlights implications for policymakers.
Why do domestic stock markets in many emerging market economies fail to develop, even in the presence of high savings rates? In this paper, we argue that this may be a ‘chicken-and-egg’ problem, which we formalise as a market coordination failure. We first develop a stylised game-theoretical model, showing that when long-term equity investment is subject to network externalities, the Pareto-optimal, high-investment equilibrium is not robust to noise. Individual investors, fearing defection by others, will rationally choose a low-investment (or ‘run’) strategy, trapping the market in a state of underdevelopment. We then show how a specific institutional design – a fully-funded, individually-owned, collectively-managed, mandatory/incentivised (FICMI) pension scheme – can act as a credible coordination device and explore the welfare implications in a tractable three-period model. By providing a guaranteed, patient source of capital, FICMI changes investor expectations and makes the highinvestment, high-welfare equilibrium robust and achievable. This paper provides a new theoretical justification for funded pension systems, not as a tool to correct individual myopia, but as a public-finance institution designed to solve a collective action problem in financial market development.
This paper investigates real earnings management (REM) practices in public non-financial companies listed on the Warsaw Stock Exchange (WSE) from 2014 to 2023, focusing on sectoral differences and the influence of market competition. REM, defined as deviations from normal business operations aimed at manipulating reported earnings, can distort financial information and harm long-term firm value. This study contributes to the existing literature in two key ways. First, it examines variations in abnormal levels of production costs, sales, and discretionary expenditures – REM proxies based on Roychowdhury’s methodology – across sectors classified according to the WSE’s industry framework. This sectoral classification, reflecting economic activities and client types, allows for identifying industries with distinct REM patterns and uncovering hidden relationships in earnings manipulation across sectors. Second, the research evaluates the impact of industry-specific characteristics on REM using concentration measures such as the Herfindahl-Hirschman Index (HHI) and the entropy ratio (E). Our sample of 218 companies shows significant sectoral variation in REM, with consumer goods firms exhibiting the highest level of earnings manipulation and finance sector firms the lowest. We find significant negative associations between market competition and certain REM proxies – specifically, abnormal production costs and discretionary expenditures – while aggregate REM measures do not show similar relationships. These findings challenge prior studies that suggest greater REM activity in less competitive industries. Limitations include sample restrictions to firms with consistent reporting and at least ten years of trading on the WSE, covering approximately half of the market. Future research incorporating variables such as ownership structure and corporate governance could enhance model fit. Overall, this study offers valuable insights for investors, regulators, academics, and financial statement users who rely on high-quality earnings information to distinguish economically efficient firms.
The aim of the study was to identify the low beta anomaly and analyse the causes of its occurrence in five European emerging markets that were components of the MSCI Emerging Markets Europe index in the period 2010–2019. It was hypothesized that the determinants of the low beta anomaly in the analysed markets are factors from at least two of the three categories of variables. Using the Betting Against Beta model proposed by A. Frazzini and L. H. Pedersen (2014), we found that this phenomenon was not identified in three markets, but occurred in the remaining two markets, for which the factors determining its occurrence were then identified, confirming the adopted hypothesis.
Purpose We address the problem of forecasting USD/CHF volatility at the beginning of the COVID-19 crisis. We chose popular currencies (Swiss franc and American dollar) in the period 1.07.2020 to 31.12.2020. Design/methodology/approach We employed several volatility models, including APARCH, EGARCH, GJR-GARCH, TGARCH, and GARCH-MIDAS, on high-frequency USD/CHF data. Particular emphasis was placed on asymmetric models to capture volatility asymmetry. Findings The highest volatility occurred during the first wave of the COVID-19 pandemic. Volatility forecasts are most accurate with EGARCH and GARCH-MIDAS models that incorporate long-term asymmetry, particularly when predicting volatility over a longer planning horizon. GARCH-MIDAS models with short-term asymmetry perform best in the sample but are inferior in forecasting future volatility (out-of-sample). Originality The originality refers to the subject of study (exchange rates instead of stocks), the methods used (GARCH-MIDAS, asymmetric volatility models), and the particular crisis period (the outbreak of the COVID-19 pandemic). Research limitations/implications Even in a market of relatively low volatility, such as forex, volatility reveals both long- and short-run components during the pandemic crisis and some asymmetry. Therefore, the use of more complicated methods is sometimes not justified by the improvement of prediction accuracy. The results are limited to specific data and a crisis period. Therefore, in the future, we need to determine whether these methods are effective in periods with average volatility.
This article examines responses to the regulatory challenges posed by decentralised finance (DeFi), a fast-evolving domain of blockchain-based financial innovation. It investigates the factors shaping divergent regulatory strategies, with a focus on the European Union’s comprehensive cryptoasset framework and selected comparative insights. Adopting a qualitative legal methodology – combining doctrinal-functional analysis, multivocal literature review, and two case studies – the authors explore how regulatory responses are influenced by three key variables: legal tradition, the financial function performed by blockchain-based solutions, and the level of technological and institutional autonomy. The case studies – Bitcoin as a payment instrument and cryptoassets as collateral – illustrate how functional and institutional contexts shape regulatory treatment. The findings suggest that highly autonomous DeFi solutions challenge traditional supervisory models, necessitating novel forms of regulatory engagement. Moreover, effective regulatory design depends on balancing legal certainty, innovation, and market integrity. The study concludes that rigid regulatory frameworks may hinder innovation and recommends greater use of soft law instruments and dynamic supervisory mechanisms to promote both adaptability and legal enforceability. The article contributes to scholarly and policy discourse by presenting one of the first analyses of recent regulatory documents, which have not yet been examined in the peer-reviewed literature. Through an interdisciplinary approach bridging finance, law, and technology, it provides practical insights for legal practitioners, financial professionals, and DeFi developers, alongside a concise conceptual overview of DeFi’s technological foundations.
The aim of this paper is to estimate the greenium in the financial debt market, calculated as the difference between the yield of green bonds and conventional bonds with the same type of with respect to euro-denominated bonds, type of the debt security, type of issuers, and maturity. The hypothesis is The greenium for the euro-denominated bonds does exist. For the analysis, yield curves for green bonds and conventional bonds were built. It employed the yield curve methodology proposed by Nelson Siegel Svensson. Statistical tests on greenium were also prepared. Daily data were collected from the Refinitiv Eikon database, covering the period from January 4, 2010, to October 17, 2024. The results suggest that greenium exists and is statistically significant. This phenomenon is noticed for the whole sample as well as the individual issuer and its bonds. The presented results show that greenium is negative and that it equals 9 basic point. The findings can be useful for regulators, governments, investors, and especially for financial institutions. They can be useful for the creating investment portfolio or estimating risk and capital adequacy measures for banks and insurance companies, which is especially significant with respect to the revised Solvency II directive.
This paper examines how individual bank characteristics influence the transmission of monetary policy through the bank lending channel. Using panel data and a Fixed Effects model validated by the Hausman test, the author analyses how bank size, capitalization, profitability and asset quality affect responses to monetary tightening. The study highlights the importance of inter-bank differences in shaping monetary policy effectiveness and offers insights for regulatory frameworks and macroprudential policies aimed at strengthening financial stability.
We studied expansions in financial safety nets and their relation to bank risk and depositor behaviour in Central and Eastern Europe, using time-varying regulatory data. In general, we find that stronger deposit insurance and state aid granted to banks are linked with both bank risk and depositor behaviour. However, these relations critically depend on whether safety net instruments are used separately or simultaneously. When deposit insurance is strengthened or state aid is granted, we confirm the standard moral hazard behaviour of banks visible in higher bank risk. In parallel, we observe more elevated deposit growth, implying lower market discipline. Conversely, when there is a simultaneous increase in deposit insurance and granting of state aid, our findings reverse. This indicates that strong policy interventions may have different links to bank risk and depositor trust than single, weaker actions. At the same time, we confirm earlier findings from the literature that expansions of financial safety net are not linked with all types of bank risk and may be associated with lagged effects.
This study examines the dynamic connectedness and spillover effects among various financial and economic indicators, including uncertainty indices, market volatility, and stock market indices, from 3 June 2008, to 30 December 2024. This interconnectedness implies that shocks originating in one market or asset class can rapidly transmit to others, underscoring the potential for systemic risk and financial contagion. The US emerges as a significant net transmitter of influence within the global financial system, with the VIX playing a crucial role in influencing global financial conditions. Major European equity markets also transmit influence, while the Geopolitical Risk Index (GRI) and the Economic Policy Uncertainty Index (EPUI) are primarily influenced by the broader financial system. Total connectedness varies over time, spiking during periods of economic distress, and volatility indices exhibit positive net connectedness during periods of financial stress, indicating their role as significant sources of volatility transmission.
The Covid-19 pandemic, which began in early 2020, triggered a global health and economic crisis, leading to unprecedented changes in consumer behaviour and the functioning of national economies. This article examines the impact of the pandemic and the subsequent inflationary crisis on household savings levels in selected European countries. The analysis includes an assessment of household responses to changing macroeconomic conditions, such as inflation, interest rates, and household incomes, as well as the effectiveness of implemented monetary and fiscal policies. The study employs a neural network model considering autoregressive relationships in a panel data approach. The research covers data from 2000–2023 for fifteen European countries. The results indicate a two-phase reaction of households: an initial sharp increase in savings in the first year of the pandemic, followed by a decline in these values below projected levels. Four groups of countries with similar reaction trajectories were identified, highlighting the diversity in savings strategies. The study emphasizes the importance of flexibility in managing economic crises and adjusting policies to specific local conditions. These findings are crucial for policymakers, enabling the development of more effective strategies for responding to future economic crises.
Retirement intentions depend on a number of different factors. The aim of this paper is to assess the impact of personal characteristics on the willingness to retire as soon as possible among older workers in Poland. The data were collected through a CAWI survey conducted in 2021 among a representative sample of workers aged 50 and over. Statistical analysis was based on logit model. Identified predictors are: age, education, fear about the financial situation in retirement, the use of free time after retirement, and lack time to pursue passions due to work. Those results provide suggestions for strengthening active ageing policy in Poland. There is a clear need for policymakers to pay more attention to reconciling work and private life and to preparing citizens for old age.
This paper explores how traditional banks perceive digital-only banks and the potential impact of digital-only banks on the retail segment of the banking sector. To obtain the main goal, we conducted in-depth semi-structured interviews with managers and directors representing different traditional banks with profound insight into the bank digitalisation process. The results indicate that, for traditional banks, the development of digital-only banks does not pose a threat or challenge that can significantly undermine their business. A high level of user experience, innovativeness, and lack of obsolete processes and technologies are the main advantages of digital-only banks that attract retail customers. At the same time, the limited range and scope of services provided and issues with compliance and trust translate into limited development opportunities.
With a vast customer base and the acquisition of information about their customers and their preferences in connection with their services, Big Tech companies are also becoming essential players in the financial sphere. Payment solutions offered by Big Tech companies, such as Google Pay or Alipay, familiarise consumers with the presence of such companies in the monetary sphere. The issuance of private money has the most excellent chance in a form regulated by public authorities and with a value stabilized to the national currency, regardless of whether it would be similar to narrow banking, synthetic CBDC or another, related form. This would provide the best ratio of benefits to economic and social costs generated by the emergence of such private money. The article aims to define the relationship between the characteristics of prospective Big Tech money individual users from France and Germany and their support for Big Tech’s right to issue their digital money. The study used data from an empirical survey designed by the author. The study used the logit model to assess the impact of selected determinants on the respondents’ willingness to accept Big Tech’s right to issue money. For this research, a stepwise regression was used to estimate the parameters of the logit model. The results revealed much greater flexibility in the approach to money on the part of French consumers than German consumers due to a significantly larger number of statistically significant explanatory variables and their differentiation in the studied groups of these variables. Differences in monetary preferences of societies of countries using a single currency should be taken into account both by companies seeking to launch the issuance of private stablecoins in the eurozone as well as by the European Central Bank intending to introduce the digital euro and by other regulators of the eurozone financial market.
Empirical research confirms that the financial behaviour of consumers differs from generation to generation – in terms of saving, spending money and also the use of credit. The main objective of this article is to determine the level of financial wellbeing and the relation between psychological wellbeing and financial wellbeing across three consumer age cohorts – generations X, Y and Z in Poland. To achieve this, a CAWI survey was conducted using the Consumer Financial Protection Bureau scale and the Ryff’s Psychological Wellbeing Scale. The results of the F-test show that although generational belonging does not statistically significantly differentiate financial wellbeing, generations X, Y and Z differ in terms of the assessment of their psychological wellbeing. The results of the correlation analysis indicate that the relationship between each dimension of psychological wellbeing and the financial wellbeing indicator is relatively weakest for Generation X and strongest for Millennials.
Background and purpose of the article: The main aim of the article is to present financial literacy (FL) and consumer over-indebtedness (OI) according to the primary survey in Poland. The auxiliary aim is to analyse the importance of financial literacy in reducing consumer over-indebtedness from a generational perspective. Over-indebtedness is a significant problem in personal finance because it leads to a situation in which household members cannot settle their financial obligations on time, negatively affecting their economic stability and prospects for long-term financial security (D’Alessio, Iezzi, 2013). It is becoming increasingly common in the country and around the world. It has a negative impact on consumers and the economy. Methods: The author conducted primary research using a survey questionnaire. The survey was conducted in Poland in 2022 on 1051 consumers. The analysis of survey data was conducted using the PLS-SEM method. Results and added value: The research results indicate that financial literacy as an independent factor alone does not play a significant role in reducing consumer over-indebtedness, but that analyses in combination with other variables shows that analysis is more effective when financial literacy is not isolated. The most sensitive group in the financial literacy and over-indebtedness study is Generation Z (GenZ), which has the lowest level of financial literacy while at the same time has the lowest financial reserves and savings, thus constituting the most exposed group to the risk of over-indebtedness. The added value could be the author’s proposition of the Financial Literacy Index (WF1), which is compared to the worldwide Financial Literacy Big Five Index (BIG 5), introduced by Lusardi (Stanford University) and Michell (Wharton University) (Lusardi, Michell, 2014).
A unique feature of crowdfunding is that it relies on numerous individuals contributing financially to the project, which sets it apart from traditional financing channels. Unlike banks, where funding decisions are subject to strict prudential criteria and the creditworthiness of the borrowing entity, crowdfunding projects appeal to various worldviews and values held by potential backers. Therefore, the financial decision to support the crowdfunding project becomes a unique problem in personal finance. This study aims to analyse the psychological and financial factors influencing crowdfunding participation, comparing social and commercial projects using the Theory of Planned Behaviour (hereinafter: TPB) and subjective financial well-being as key determinants. Specifically, it investigates how attitudes, subjective norms, and perceived behavioural control (hereinafter: PBC) shape backers’ intentions across these two crowdfunding contexts, while also examining the role of financial perceptions in decision-making. For this study, we collected 379 responses from participants with prior crowdfunding experience from the United States and Europe, recruited through the Prolific platform. The data were analysed using Partial Least Squares Structural Equation Modelling (hereinafter: PLS-SEM) to test the hypothesised relationships. Results confirm the central role of attitudes toward crowdfunding in shaping the intentions to support social and commercial projects. The findings indicate that incorporating a personal finance perspective enhances our understanding of crowdfunding backers’ behaviour. Indeed, subjective financial well-being is significantly related to subjective norms and PBC. This result suggests that respondents who perceive their financial situation more positively are also more likely to believe that supporting crowdfunding is an easy process within their control. Finally, the study confirms that subjective norms significantly influence social project intentions but not commercial ones.
In this study, we examine the impact of financial and pension ignorance (information avoidance) on the decisionmaking process for long-term savings. We define the concept of pension ignorance, as active avoidance of retirement information, failure to make decisions regarding retirement savings, and a lack of strategic retirement planning. To assess financial ignorance, we utilized the scale developed by Barrafrem et al. (2024), while pension ignorance was evaluated using the scale designed by the authors. The study was conducted with a sample of 1,200 Polish residents aged 18 to 65, using the Computer-Assisted Web Interviewing (CAWI) method. The findings reveal that both pension and financial ignorance play a significant role in explaining individuals’ willingness to save for the long term.
