Academic literature on the topic 'Quoted banks'

This study which focused on the "the effect of audit quality on the corporate performance of selected banks in Nigeria" was prompted as a result of inability of audit to prevent the occurrence of fraud and material misstatement in the bank's financial reports. Thus, this study is aimed at assessing the effect of audit quality on the corporate performance of selected banks in Nigeria. Specifically, the study examined the effect of audit firm size on return on asset of Nigerian banks determined the extent audit committee independence affect return on equity of Nigerian banks and ascertained the effect of audit committee on the profit margin of Nigerian banks. Three research questions and hypotheses were formulated in line with the objectives of this study. The population of the study consists of sixteen deposit money banks quoted on the Nigerian Stock Exchange. Data for the study were extracted through the financial statement of the banks from 2008 to 2017 and was tested with regression statistical tool using the Scientific Package for Social Sciences SPSS Version 20. Based on the data analyzed, the study found that firm size has significant effects on return on assets of quoted Nigerian banks also that audit committee independent has significant affect return on equity of quoted Nigerian banks. Another finding is that audit committee size has significantly affects profit margin of quoted Nigerian banks. Based on this, the study recommended among others that companies should make use of the services of audit firms with unquestionable track records of audit quality and reputation hence the debate on audit quality is not a settled matter. Ogbodo, Okenwa Cy | Akabuogu, Nzube J. "Effect of Audit Quality on the Financial Performance of Selected Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-1 , December 2018, URL: https://www.ijtsrd.com/papers/ijtsrd18961.pdf

This study investigates the impact of corporate governance on the financial performance of Nigeria's publicly traded commercial banks. The objective of this study is to determine if board size, board female gender, and board independence have effect on the financial performance of quoted commercial banks in Nigeria. Five (5) quoted commercial banks in Nigeria was examined, ranging from the years 2011 to 2020. Secondary data was used and obtained from the bank’s annual reports published in Nigeria Exchange Group. Cross-Sectional research design was used, and the method of data analysis used was panel multiple regression. Findings revealed that board independence has a significant impact on financial performance ( return on assets) of quoted commercial banks in Nigeria but shows negative relationship with financial performance ( return on assets) of quoted commercial banks, study further revealed that board size has a negative relationship with bank's financial performance (return on assets) but has significant value on the financial performance (return on assets) , findings also revealed that at least two female board members were represented in every corporate organization studied, female board membership has a positive relationship with banks' financial performance (Return on Assets), but shows insignificant value on financial performance (return on assets). The study concluded and recommended that, despite some of the independent variables shows insignificant values, Board independent, Board size, Board female gender mechanisms continue to be a critical component of corporate governance in achieving any organization's objectives, financial or otherwise.

This paper examined the effect of interest rate spread (IRS) on financial resilience of quoted Nigerian banks from 2007 to 2021. Specifically, the paper examined the effect of deposit rate, lending rate, and interest rate differential on financial resilience of quoted Nigerian banks. The paper collected data from the CBN bulletin (2021) and Security Exchange Commission (SEC) annual report (2021) and the World Bank data base (2021). The study covered all the twenty one (21) commercial banks quoted in the Nigerian exchange group as of 31st December, 2021 using the census sampling approach. The study reported that, deposit (savings) rate/cost has a positive (coef=0.056833) insignificant (p-value=0.5327.5%) effect on financial resilience (bank z-score) of quoted banks in Nigeria. By extension, deposit (savings) rate/cost has a minimal effect on banks’ financial resilience. However, lending (borrowing) rate/cost interest rate differential (prime lending/borrowing rate/cost less savings/deposit rate/cost) exerted negative (coef= -0.527024&coef= -0.160001 respectively) significant (p-value=0.0001<5% &p-value=0.0194<5%) effect on financial resilience (bank z-score) of quoted banks in Nigeria.Hence, the paper concludes that, high lending rate and interest rate differential reduce financial resilience of quoted Nigerian banks. As such, the study submits that, the apex banks must ensure that, the rising lending rate should be discouraged. This if not cautioned; it has the capacity to reduce the productive capacity of the private sector. Again, to encourage more depositors to invest their depositors’ funds, the ape banks should raise the deposit rate. Lastly, the Nigerian banks are adjourning to keep their interest rate differentials relatively low.
 Keywords: Analysis, Interest Rate Spread, Deposit Rate, Lending Rate, And Interest Rate Differential, Financial Resilience Quoted Banks.

This study examined the effect of corporate governance mechanism and shareholders wealth maximization of quoted commercial banks in Nigeria. The purpose is to examine how corporate governance variables affect shareholders wealth of quoted commercial banks in Nigeria. Panel data was sourced from financial statement of the quoted commercial banks from 2011 to 2020. Return on equity and return on assets were modeled as a function of board size, board composition, board independence and directors shareholdings. Panel data Ordinary least square method was used as data analysis technique. The study found that 65.7 and 70 percent of return on equity and return on assets were explained by variation in corporate governance variables. Beta coefficient of the variables found that board size and board composition have positive but no significant effect on return on equity of the quoted commercial banks while board independent and directors equity holding have negative effect on the return on equity of the quoted commercial banks. The study found that the independent variables have positive effect on return on assets of the quoted commercial banks except directors’ equity holding. From the findings, the study concludes that corporate governance variables have greater effect on return on assets than return on equity of the quoted commercial banks. From the findings, the study recommends the all corporate governance code from the regulatory authorities should well complied with by the management of the commercial banks. Directors equity holding should be reduce and its objectives integrated with the management objective of maximizing shareholders wealth

<i>This study examined the effects of dividend payments on share prices of quoted deposit money banks in Nigeria. The specific objectives of the study are to: determine the effect of dividend payout ratio on share prices of quoted deposit money banks in Nigeria, examine the effect of dividend per share on share prices of quoted deposit money banks in Nigeria and ascertain the effect of dividend yield on share prices of quoted deposit money banks in Nigeria. The study was an expo facto research design which span for a period of 10 years from 2013 to 2022. The study adopted a stratified sampling technique in determining the sample size, hence 15 Deposit Money Banks operating on the Nigerian Exchange Group with total observation of 150 were sampled for analysis. Regression analysis applied as panel estimation were used in testing the hypotheses, since the dataset combines cross-sections and time series which increases the number of degree of freedom and strengthens the power of the tests. Findings arising from the panel least squares indicates dividend payout ratio exerts a significant and positive effect on share prices of the sampled Deposit Money Banks in Nigeria with p-value of 0.0018 &lt; 0.05 and the t-statistics of 3.172829 &gt; 2. The result also revealed that dividend per share has a significant and positive effect on share prices of the sampled Deposit Money Banks in Nigeria with probability value of 0.0012&lt; 0.05 and a t-Statistic of 3.309352&gt;2. More so, Dividend yield has a significant and positive effect on share prices of the sampled Deposit Money Banks with probability value of 0.0306 &lt; 0.05 and a t-Statistic of 2.183960&gt;2. These findings suggest that dividend payments play a crucial role in influencing investor perceptions and demand for the bank's shares. Conclusively, the study portrays that consistent dividend payments can assist deposit money banks in formulating effective dividend policies, attracting investors, and maximizing shareholder value. It was recommended that Deposit money banks should carefully determine an appropriate dividend payout ratio that balances the interests of shareholders and the need for reinvestment in the business.</i>

This study seeks to examine the effect of unclaimed dividend on profitability and firm value of selected deposit money banks DMBs quoted in the Nigerian Stock Exchange NSE . The population of constitutes of all the quoted deposit money banks DMBs in the Nigerian Stock Exchange for the 5 year period 2012-2016 covered by this study. Nine of the banks were selected was selected for the study. Ordinary least square OLS statistical tool was used in the analysis of data. The study found that there is no significant relationship between unclaimed dividend and profitability, similarly it was also observed that no significant relationship exists between unclaimed dividend and firm value of the selected banks. It was recommended that regulators and other stakeholders in the capital market should ensure that the new e dividend payment system is fully implemented to significantly reduce the volume of unclaimed dividend. Also, shareholders should be sensitized on the importance of the e dividend payment and how they can take advantage of it. Prof. C. M. Ekwueme | Ezelibe Chizoba Paulinus &quot;Unclaimed Dividend, Profitability and Firm Value of Quoted Deposit Money Banks (DBMS) in Nigeria&quot; Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-1 , December 2017, URL: https://www.ijtsrd.com/papers/ijtsrd8252.pdf

Commercial banks and other profit making organizations want to sustain their profit. This made them improve on their financial management practices. However, risks are inevitable in business and to improve on the indices of organizations, financial risks are expected to be properly managed. Hence this study examined the effect of financial risk assets management on financial performance of quoted commercial banks in Nigeria using data from seven selected quoted commercial banks for the period between 2014 and 2023. This study examined in details the effect of liquidity risk, operational risk, capital risk, credit risk, and market risk on the profitability of quoted commercial banks in Nigeria. The study adopted a dynamic approach of using the Autoregressive Distributed Lag (ARDL) model. The lag length selection criteria revealed that it is appropriate to use lag one in our dynamic approach. The study revealed significant effect of liquidity risk, operational risk, capital risk and market risk on the profitability of quoted commercial banks in Nigeria, both at the short run as well as the long run. It was further revealed that credit risk management have no significant effect on the profitability of quoted banks in Nigeria. The study therefore recommend that proper review of the credit risk structure should be done for aggressive loan recovery by the banks. The banks should adopt various methods necessary in other to ensure massive recovery of their funds that has been a source of negative financial performance to their organizations. Such methods to adopt should include, but not limited to, meetings and dialogue with the debtors, moral suasion, and litigations. Email: Risk Management, Commercial Banks, Nigeria and Financial Performance

The study examines board size and corporate performance of quoted companies in Nigeria. The objectives of the study are to examine the relationship between board size and total asset of quoted Nigerian banks; to examine the relationship between board size and total revenue of quoted Nigerian banks; to examine the relationship between board size and net profit of quoted Nigerian banks. The study adopted panel research design and census survey approach. The population of this research consists of 21 commercial banks in Nigeria. Data were collected from secondary sources that is audited financial statements. The findings of the study showed that there is a negative relationship between board size and total assets; there is a positive relationship between board size and gross revenue; there is a positive relationship between board size and Net profit. From the above findings, the study concluded that there is a relationship exist between board size and corporate performance of quoted Nigerian banks. The study further recommend that commercial banks and quoted firms must ensure that a proper board of directors is composed in other to institute standards and controls that will boost the net income of the firm; regulatory bodies should ensure that firms constitute a board with a standard size of seven members. The board also must have professionals who have requisite knowledge in the business; firm’s board must ensure that the committees in the board are most effective in safeguarding the asset of the organization and should continuously make decisions that will boost the revenue and net profit of the firm.

The study examines board size and corporate performance of quoted companies in Nigeria. The objectives of the study are to examine the relationship between board size and total asset of quoted Nigerian banks; to examine the relationship between board size and total revenue of quoted Nigerian banks; to examine the relationship between board size and net profit of quoted Nigerian banks. The study adopted panel research design and census survey approach. The population of this research consists of 21 commercial banks in Nigeria. Data were collected from secondary sources that is audited financial statements. The findings of the study showed that there is a negative relationship between board size and total assets; there is a positive relationship between board size and gross revenue; there is a positive relationship between board size and Net profit. From the above findings, the study concluded that there is a relationship exist between board size and corporate performance of quoted Nigerian banks. The study further recommend that commercial banks and quoted firms must ensure that a proper board of directors is composed in other to institute standards and controls that will boost the net income of the firm; regulatory bodies should ensure that firms constitute a board with a standard size of seven members. The board also must have professionals who have requisite knowledge in the business; firm&rsquo;s board must ensure that the committees in the board are most effective in safeguarding the asset of the organization and should continuously make decisions that will boost the revenue and net profit of the firm.

It is important for the investors to have a good understanding of the financial position of a company in other to make sound investment decisions. This study examined the relationship between accounting information and share price of quoted commercial banks in Nigeria for 10 years from 2007 to 2016. Ex post facto research design was adopted and the data collected were analyzed using descriptive statistic, correlation and regression analysis. The study findings revealed that earnings per share and capital employed per share have positive and strong significant influence on share price of quoted banks in Nigeria. The study recommends the introduction of sector wise index which will help Investors to analyze the company&#39;s overall characteristics when making investment decisions, this is because the effects of accounting information on share price depends on both the firms and industry&#39;s overall characteristics. Meka Azuka Gloria | Nwadialor Eugene Okoye &quot;Effect of Accounting Information on Share Price of Quoted Banks in Nigeria&quot; Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-1 , December 2018, URL: https://www.ijtsrd.com/papers/ijtsrd19073.pdf

This thesis deals with the automatization and comparison of two different strategies for the forex markets, based on the indicator, one from the tools of technical analysis, called Bollinger Bands. Both strategies are first optimized and then compared. Automatization of strategies will be implemented by? using the Meta Quotes Language for MetaTrader broker and its testing will be done on historical data. The goal with this thesis is the operational objective application of the better strategy in the environment of real market.

碩士<br>國立中正大學<br>國際經濟所<br>95<br>Although a large number of studies on market microstructure have been made in securities market, little attention has been given to the foreign exchange market. The purpose of this paper is to explore a little further on market microstructure in TWD/USD market. We try to analyze the information impact on price movement by using the bid quote and the ask quote of TWD/USD exchange rate respectively through an error-correct model. The empirical evidences find that (1) quote revision is negatively auto-correlated and revision in one-period lagged quote makes both the bid quote and the ask quote move in the same direction. In addition, there exists a long-run equilibrium bid-ask spread, and empirical results indicate that bid-ask spread would tend to narrow because information discloses gradually in trade processes. Finally, trading volume and the dummy variable indicating block trade show a positive impact on bid-ask spread.

碩士<br>國立臺灣大學<br>財務金融學研究所<br>92<br>After the principal of “liberalizing for business but tightening for financial control” being made by the supervision institutinos which aims at participating in WTO, the free-up has resulted in increasingly adding derivative financial products; at the end of 2003, the accumulated volume of derivative products in domestic banking businesses has reached NT$4.07 trillion. Due to the fact that banking businesses become much more aggressive in reaching out financial investment, it becomes even more important as to set up the counterparty trading limit out of the general credit line. On the other hand, the Basel II agreements regulate the way that the financial institutions should reserve the risky assets when trading on the derivative products, it also regulates to set up the total credit line of the counterparties, as well as to monitor the differences between the real risky limit and the original set-up risky limit. Hence, this paper is focusing on applying these theories into practice to help solve for a much better financial-healthy business environment, and greet for a sounder and more liberalized future. This paper is divided in four parts. The first part is to rate various financial indexes, and the ratings will therefore be linked to the group standards of credit risk of the clients. First of all, we have to set up the rating system of our clients; through unilateral regression (the choosing of variables) and mutilteral regression (the determination of explainable and related variables), we will find out the explainable financial variables, and thus build up the model. The second part is to cross calculate the credit rating result and the client’s net worth, thus gives the counterparty a limit line, which determines the risk limit of both sides. The total limit line for counterparty is also subject to the limitation of assets as well as the risky nature of credit line. The third part is to calculate the risk measures of different financial products, which are divided by the traditional products such as general mortgage、 interbank loan、 RP and the derivative products such as Interest Rate Option and FX Option, all the potential financial losses of all the financial products should be measured carefully. In the fourth part we deal with the counterparty’s limit line which is derived from the above three parts. A explosure of each financial product will be calculated by risky coefficient, when a deal is done, the explosure will be reasonably deducted from counterparty’s limit line. This will help to find out the possible default during the existing time of financial contracts, thus help to accomplish the ultimate goal as to manage the counterparty risk.

The Technology Revolution has been changing the way people interact with each other, as well as changing the way several industries operate for the last decades. This Dissertation studies banking industry, which is one of the major industries that is undergoing a digital transformation. The objective of the following Dissertation is to analyze and study what impact does Fintech have on the already-established financial companies, with a special emphasis on European banks, as well as analyzing whether there is some specific type of Fintech company more capable of impacting more significantly the share price of the acquirer.. With the use of the event study methodology, it was possible to analyze how a merger or acquisition (M&A) of a Fintech company by a financial company affects the share price of the acquirer. The present Dissertation uses financial market data to understand if there is a positive significant effect on the share price of the acquirer when if a Fintech M&A event occurs. The empirical results of this Dissertation allow us to conclude that the acquisition of Fintech companies have a positive and significant impact in the share price of the acquirer, both European banks as well as other financial companies. In regard to the type of Fintech, the results show that the “Digital Banking” type of Fintech is the one which has the most positive and significant impact, while “Software” has the most negative and significant impact. The robustness of the model was tested, and the results show that the results are globally stable.<br>A Revolução Tecnológica tem alterado de forma significativa a maneira como as pessoas interagem umas com as outras, tal como tem mudado a maneira como várias indústrias têm operado nas últimas décadas. Nesta Dissertação é estudada a indústria financeira, que é umas das principais indústrias que tem sido objecto de uma transformação digital. O objetivo desta Dissertação é analisar e estudar os impactos que as Fintech têm nas já estabelecidas empresas financeiras, com especial ênfase para os bancos Europeus, bem como analisar se existe alguma categoria específica de empresa Fintech que tenha um impacto mais significativo na cotação bolsista da empresa compradora. A presente Dissertação emprega a metodologia quantitativa de estudos de eventos, analisando como uma fusão ou aquisição (F&A) de uma empresa Fintech por uma empresa financeira afeta a cotação bolsista da empresa compradora. A presente Dissertação usa dados financeiros de alta frequência dos mercados, sendo possível, através da metodologia descrita, analisar se existe um efeito positivo e significante na cotação bolsista da empresa compradora. Os resultados empíricos da presente Dissertação permitem concluir que a aquisição de empresas Fintech apresenta impactos positivos e significativos na cotação bolsista das empresas compradoras, sejam bancos europeus ou outras empresas presentes na indústria financeira. Quanto à categoria de Fintech, os resultados mostram que as Fintech do tipo “Bancos Digitais” são as que têm o maior impacto positivo e significante, enquanto que as do tipo “Software” são as que têm o maior impacto negativo e significante. A robustez do modelo é igualmente testada e os resultados finais demostram que os resultados são globalmente estáveis.

Abstract This chapter explores the critical role of market-based instruments in the framework of climate clubs, emphasizing their effectiveness in reducing global emissions while maintaining economic efficiency. Instruments such as import bans and quotas for high carbon emitted products, emissions trading systems, domestic carbon tax, border carbon adjustments, and technical regulations and standards are highlighted as key tools for fostering shared responsibility and promoting sustainable markets. These mechanisms offer valuable insights for policymakers, demonstrating their potential to achieve emission reduction targets and encourage economic competitiveness within a cooperative global framework. The analysis also underscores the importance of aligning these instruments with WTO law to ensure their long-term viability.

Abstract This chapter evaluates the legality of the climate club scheme, focusing on its alignment with the Paris Agreement and WTO norms. Through an analysis of Article 6 of the Paris Agreement, the chapter underscores how the club scheme complements and amplifies international climate governance, emphasizing its potential to foster heightened ambition and cooperation among countries. The Climate Club Initiative introduced at COP 28 exemplifies the practical application of this framework, highlighting its role in industrial decarbonization and advancing global climate goals. The chapter also addresses the compatibility of climate club linkages of extra carbon tariffs, import requirements leading to bans or quotas for high carbon emitted products, or surrender of emission allowance certificates for certain imports’ implications on WTO norms. The examination of the schedule of concessions, tariff deconsolidation, and the general elimination of quantitative restrictions has highlighted the intricate legal considerations involved in reconciling climate-related trade instruments with WTO law. The climate club scheme mitigates potential trade disputes and fosters a global market for green goods by proposing shared standards, carbon pricing mechanisms, and mutual recognition of emissions allowances. The integration of environmental and trade policies, leveraging legal flexibilities and multilateral negotiations, emerges as key to aligning climate action with sustainable trade practices. With dual legitimacy under the Paris Agreement and WTO law, the climate club framework offers an innovative and cooperative model for addressing the multifaceted challenges of climate change. Its evolution will be pivotal in advancing international climate governance and achieving the ambitious goals set by the Paris Agreement.

Abstract Storing human tissues for biomedical research purposes has been a common practice for decades, yet until a few years ago there were no reliable data in the United States or elsewhere on the approximate numbers or types of tissues in storage at government laboratories, universities, or commercial tissue banks. Likewise, the two statements quoted above remind us that expressions of concern about the multiple uses and possible abuses of our continually expanding knowledge in human genetics have been common for many years-long before and, we predict, long after the Human Genome Project (HGP)-yet there has been little information compiled about these concerns or how they may play influential roles in the current controversy over research with stored tissues.

Based on the theoretical analysis of bibliographic sources, the main content of the concept of &amp;quot;banking ecosystem&amp;quot; is determined, the main tasks of its creation, distinctive features, functions of the ecosystem of the banking sector are considered, special attention is paid to the algorithm of creation and aspects of state regulation of the digital ecosystem of the bank. Examples of domestic banks developing their own ecosystems are given, and services are offered to enhance the functionality of Sberbank's mobile application. The prospects for the development of banking ecosystems in Russia are formulated.

This paper presents a case study using ergonomics methodology to design workstations for wheelchair users in administrative offices. The case study was conducted for a large financial institution in Brazil with headquarters in São Paulo-SP. The design project seeks to meet two existing technical standards in Brazil , one of them is Brazilian standard ABNT NBR-9050: Accessibility of Buildings, Furniture, Urban Spaces and Equipment and the other is Ergonomics standard NR-17 which sets out the minimum comfort requirements for workstation furniture . The furniture in question will enable the financial institution (a Bank) to hire operators who have locomotor disabilities so that they can work in their premises at workstations that meet users’ needs and address their limitations, as well as complying with the Labor Legislation and the Accessibility Legislation (the Law on quotas), thereby demonstrating a real social contribution of Ergodesign and Ergonomics as a whole.

The EU Commission draft proposal for the F gas regulation EU 514/2014 review was published in April 2022. This draft proposal is foreseen to adapt to new challenges coming from the EU Green Deal – striving to achieve carbon neutrality by 2050, while keeping also alignment with the EU commitment towards the Montreal Protocol - Kigali amendment. There are different views how the revised F gas regulation should contribute to these goals. This paper analyses elements of the draft proposal in which the proposal: gets more strict for RACHP equipment (product bans) and reduces available amounts of refrigerant on the market (phase down quota) for new equipment as well as for servicing needs. It will also show the challenges of the proposed changes and adaptations, impact on the market and industry of RACHP equipment – relation to energy efficiency of the equipment, availability of the HFC refrigerants, new alternatives, etc.

Abstract X Field located in the United Arab Emirates has been developed since 1970's by waterflooding as secondary recovery strategy. As water front advances into oil bank, the well operation practice commonly adopted in many fields for oil wells cutting water has consisted in reducing choke aperture in an attempt to control the water cut trend. However, in wells producing moderate to high water cut, this practice has proven to generate excess water settling in the bottom of the wellbore leading to premature inactivation of the wells. The reservoir Z in the north of X Field, is a black oil block operated by peripheral and pattern waterflooding. The production wells have been operating by natural lifting since first oil and will continue in natural flow until the Artificial Lift projects are commissioned within a few years. Meanwhile, the field production plateau has been increased arising challenges of production sustainability due to higher risk of acceleration of water breakthrough and consequently higher number of wells becoming inactive earlier. This led to re-assess the Well and Reservoir management strategy to define improved practices oriented to maximize the natural life cycle of wet wells and ensure the compliance of the field production quota. As a result, a new well management approach was devised and adopted to identify and optimize at the earliest stage, wells potentially affected by water loading mismanage. Conceptually, this new practice consisted in comprehensively analyzing well operating conditions, which ultimately generated a flow operating window that improved the multiphase flow performance in wellbores, minimized water slippage avoiding it to settle down and its associated problems, whilst respecting the compliance of technical guidelines for optimum reservoir management. Based on observations and data gathered from portable testing jobs, saturation logs, PLT and production monitoring; a methodology referred in this work as Critical Flow Analysis, has been successfully implemented in several naturally flowing wells with water cuts ranging from 15 – 40 % in Reservoir Z in X Field, which resulted in prolonged natural life, extra oil recovered, and avoided the negative impact of inactive string count on the Field Management KPI. The Critical Flow analysis has been a comprehensive well management evaluation and operation philosophy in Reservoir Z which helped to manage more efficiently and in cost-saving fashion the performance of oil wells located in high risk areas, in addition to contribute with stablishing best practices for well and reservoir management that could be extended to analog fields in the area.

In Australia repurchase (repo) obligations are traded bilaterally 'over-the-counter' between parties, rather than on an exchange. As a result, it is difficult to obtain quotes of executable prices, trading volumes, and related data that are representative of the market. Market conditions are therefore not easy to assess and often dependent on anecdotal evidence. Over the years, the Reserve Bank of Australia has published data and analysis of the repo market by providing indirect perspectives using data from its own open market operations that are conducted using repos. This paper contributes to this work. The Reserve Bank conducts open market operations to manage liquidity in the interbank market, provide settlement balances for the smooth functioning of the payments system, and for the implementation of monetary policy. Repos are an integral part of these operations. The eligible private sector counterparties in these auctions have a variety of reasons for participating. We arrange their bids in an ascending order in a number of distinct phases so that they can be used to make inferences about the demand for repo and hence market operations. Several insights allow us to better understand the dynamics underpinning the repo market. The findings mainly relate to the period prior to the implementation of unconventional monetary policies in March 2020.

Banco de la República is celebrating its 100th anniversary in 2023. This is a very significant anniversary and one that provides an opportunity to highlight the contribution the Bank has made to the country’s development. Its track record as guarantor of monetary stability has established it as the one independent state institution that generates the greatest confidence among Colombians due to its transparency, management capabilities, and effective compliance with the central banking and cultural responsibilities entrusted to it by the Constitution and the Law. On a date as important as this, the Board of Directors of Banco de la República (BDBR) pays tribute to the generations of governors and officers whose commitment and dedication have contributed to the growth of this institution.1 Banco de la República’s mandate was confirmed in the National Constitutional Assembly of 1991 where the citizens had the opportunity to elect the seventy people who would have the task of drafting a new constitution. The leaders of the three political movements with the most votes were elected as chairs to the Assembly, and this tripartite presidency reflected the plurality and the need for consensus among the different political groups to move the reform forward. Among the issues considered, the National Constitutional Assembly gave special importance to monetary stability. That is why they decided to include central banking and to provide Banco de la República with the necessary autonomy to use the instruments for which they are responsible without interference from other authorities. The constituent members understood that ensuring price stability is a state duty and that the entity responsible for this task must be enshrined in the Constitution and have the technical capability and institutional autonomy necessary to adopt the decisions they deem appropriate to achieve this fundamental objective in coordination with the general economic policy. In particular, Article 373 established that “the State, through Banco de la República, shall ensure the maintenance of the purchasing power of the currency,” a provision that coincided with the central banking system adopted by countries that have been successful in controlling inflation. In 1999, in Ruling 481, the Constitutional Court stated that “the duty to maintain the purchasing power of the currency applies to not only the monetary, credit, and exchange authority, i.e., the Board of Banco de la República, but also those who have responsibilities in the formulation and implementation of the general economic policy of the country” and that “the basic constitutional purpose of Banco de la República is the protection of a sound currency. However, this authority must take the other economic objectives of state intervention such as full employment into consideration in their decisions since these functions must be coordinated with the general economic policy.” The reforms to Banco de la República agreed upon in the Constitutional Assembly of 1991 and in Act 31/1992 can be summarized in the following aspects: i) the Bank was assigned a specific mandate: to maintain the purchasing power of the currency in coordination with the general economic policy; ii) the BDBR was designatedas the monetary, foreign exchange, and credit authority; iii) the Bank and its Board of Directors were granted a significant degree of independence from the government; iv) the Bank was prohibited from granting credit to the private sector except in the case of the financial sector; v) established that in order to grant credit to the government, the unanimous vote of its Board of Directors was required except in the case of open market transactions; vi) determined that the legislature may, in no case, order credit quotas in favor of the State or individuals; vii) Congress was appointed, on behalf of society, as the main addressee of the Bank’s reporting exercise; and viii) the responsibility for inspection, surveillance, and control over Banco de la República was delegated to the President of the Republic. The members of the National Constitutional Assembly clearly understood that the benefits of low and stable inflation extend to the whole of society and contribute mto the smooth functioning of the economic system. Among the most important of these is that low inflation promotes the efficient use of productive resources by allowing relative prices to better guide the allocation of resources since this promotes economic growth and increases the welfare of the population. Likewise, low inflation reduces uncertainty about the expected return on investment and future asset prices. This increases the confidence of economic agents, facilitates long-term financing, and stimulates investment. Since the low-income population is unable to protect itself from inflation by diversifying its assets, and a high proportion of its income is concentrated in the purchase of food and other basic goods that are generally the most affected by inflationary shocks, low inflation avoids arbitrary redistribution of income and wealth.2 Moreover, low inflation facilitates wage negotiations, creates a good labor climate, and reduces the volatility of employment levels. Finally, low inflation helps to make the tax system more transparent and equitable by avoiding the distortions that inflation introduces into the value of assets and income that make up the tax base. From the monetary authority’s point of view, one of the most relevant benefits of low inflation is the credibility that economic agents acquire in inflation targeting, which turns it into an effective nominal anchor on price levels. Upon receiving its mandate, and using its autonomy, Banco de la República began to announce specific annual inflation targets as of 1992. Although the proposed inflation targets were not met precisely during this first stage, a downward trend in inflation was achieved that took it from 32.4% in 1990 to 16.7% in 1998. At that time, the exchange rate was kept within a band. This limited the effectiveness of monetary policy, which simultaneously sought to meet an inflation target and an exchange rate target. The Asian crisis spread to emerging economies and significantly affected the Colombian economy. The exchange rate came under strong pressure to depreciate as access to foreign financing was cut off under conditions of a high foreign imbalance. This, together with the lack of exchange rate flexibility, prevented a countercyclical monetary policy and led to a 4.2% contraction in GDP that year. In this context of economic slowdown, annual inflation fell to 9.2% at the end of 1999, thus falling below the 15% target set for that year. This episode fully revealed how costly it could be, in terms of economic activity, to have inflation and exchange rate targets simultaneously. Towards the end of 1999, Banco de la República announced the adoption of a new monetary policy regime called the Inflation Targeting Plan. This regime, known internationally as ‘Inflation Targeting,’ has been gaining increasing acceptance in developed countries, having been adopted in 1991 by New Zealand, Canada, and England, among others, and has achieved significant advances in the management of inflation without incurring costs in terms of economic activity. In Latin America, Brazil and Chile also adopted it in 1999. In the case of Colombia, the last remaining requirement to be fulfilled in order to adopt said policy was exchange rate flexibility. This was realized around September 1999, when the BDBR decided to abandon the exchange-rate bands to allow the exchange rate to be freely determined in the market.Consistent with the constitutional mandate, the fundamental objective of this new policy approach was “the achievement of an inflation target that contributes to maintaining output growth around its potential.”3 This potential capacity was understood as the GDP growth that the economy can obtain if it fully utilizes its productive resources. To meet this objective, monetary policy must of necessity play a countercyclical role in the economy. This is because when economic activity is below its potential and there are idle resources, the monetary authority can reduce the interest rate in the absence of inflationary pressure to stimulate the economy and, when output exceeds its potential capacity, raise it. This policy principle, which is immersed in the models for guiding the monetary policy stance, makes the following two objectives fully compatible in the medium term: meeting the inflation target and achieving a level of economic activity that is consistent with its productive capacity. To achieve this purpose, the inflation targeting system uses the money market interest rate (at which the central bank supplies primary liquidity to commercial banks) as the primary policy instrument. This replaced the quantity of money as an intermediate monetary policy target that Banco de la República, like several other central banks, had used for a long time. In the case of Colombia, the objective of the new monetary policy approach implied, in practical terms, that the recovery of the economy after the 1999 contraction should be achieved while complying with the decreasing inflation targets established by the BDBR. The accomplishment of this purpose was remarkable. In the first half of the first decade of the 2000s, economic activity recovered significantly and reached a growth rate of 6.8% in 2006. Meanwhile, inflation gradually declined in line with inflation targets. That was how the inflation rate went from 9.2% in 1999 to 4.5% in 2006, thus meeting the inflation target established for that year while GDP reached its potential level. After this balance was achieved in 2006, inflation rebounded to 5.7% in 2007, above the 4.0% target for that year due to the fact that the 7.5% GDP growth exceeded the potential capacity of the economy.4 After proving the effectiveness of the inflation targeting system in its first years of operation, this policy regime continued to consolidate as the BDBR and the technical staff gained experience in its management and state-of-the-art economic models were incorporated to diagnose the present and future state of the economy and to assess the persistence of inflation deviations and expectations with respect to the inflation target. Beginning in 2010, the BDBR established the long-term 3.0% annual inflation target, which remains in effect today. Lower inflation has contributed to making the macroeconomic environment more stable, and this has favored sustained economic growth, financial stability, capital market development, and the functioning of payment systems. As a result, reductions in the inflationary risk premia and lower TES and credit interest rates were achieved. At the same time, the duration of public domestic debt increased significantly going from 2.27 years in December 2002 to 5.86 years in December 2022, and financial deepening, measured as the level of the portfolio as a percentage of GDP, went from around 20% in the mid-1990s to values above 45% in recent years in a healthy context for credit institutions.Having been granted autonomy by the Constitution to fulfill the mandate of preserving the purchasing power of the currency, the tangible achievements made by Banco de la República in managing inflation together with the significant benefits derived from the process of bringing inflation to its long-term target, make the BDBR’s current challenge to return inflation to the 3.0% target even more demanding and pressing. As is well known, starting in 2021, and especially in 2022, inflation in Colombia once again became a serious economic problem with high welfare costs. The inflationary phenomenon has not been exclusive to Colombia and many other developed and emerging countries have seen their inflation rates move away from the targets proposed by their central banks.5 The reasons for this phenomenon have been analyzed in recent Reports to Congress, and this new edition delves deeper into the subject with updated information. The solid institutional and technical base that supports the inflation targeting approach under which the monetary policy strategy operates gives the BDBR the necessary elements to face this difficult challenge with confidence. In this regard, the BDBR reiterated its commitment to the 3.0% inflation target in its November 25 communiqué and expects it to be reached by the end of 2024.6 Monetary policy will continue to focus on meeting this objective while ensuring the sustainability of economic activity, as mandated by the Constitution. Analyst surveys done in March showed a significant increase (from 32.3% in January to 48.5% in March) in the percentage of responses placing inflation expectations two years or more ahead in a range between 3.0% and 4.0%. This is a clear indication of the recovery of credibility in the medium-term inflation target and is consistent with the BDBR’s announcement made in November 2022. The moderation of the upward trend in inflation seen in January, and especially in February, will help to reinforce this revision of inflation expectations and will help to meet the proposed targets. After reaching 5.6% at the end of 2021, inflation maintained an upward trend throughout 2022 due to inflationary pressures from both external sources, associated with the aftermath of the pandemic and the consequences of the war in Ukraine, and domestic sources, resulting from: strengthening of local demand; price indexation processes stimulated by the increase in inflation expectations; the impact on food production caused by the mid-2021 strike; and the pass-through of depreciation to prices. The 10% increase in the minimum wage in 2021 and the 16% increase in 2022, both of which exceeded the actual inflation and the increase in productivity, accentuated the indexation processes by establishing a high nominal adjustment benchmark. Thus, total inflation went to 13.1% by the end of 2022. The annual change in food prices, which went from 17.2% to 27.8% between those two years, was the most influential factor in the surge in the Consumer Price Index (CPI). Another segment that contributed significantly to price increases was regulated products, which saw the annual change go from 7.1% in December 2021 to 11.8% by the end of 2022. The measure of core inflation excluding food and regulated items, in turn, went from 2.5% to 9.5% between the end of 2021 and the end of 2022. The substantial increase in core inflation shows that inflationary pressure has spread to most of the items in the household basket, which is characteristic of inflationary processes with generalized price indexation as is the case in Colombia. Monetary policy began to react early to this inflationary pressure. Thus, starting with its September 2021 session, the BDBR began a progressive change in the monetary policy stance moving away from the historical low of a 1.75% policy rate that had intended to stimulate the recovery of the economy. This adjustment process continued without interruption throughout 2022 and into the beginning of 2023 when the monetary policy rate reached 12.75% last January, thus accumulating an increase of 11 percentage points (pp). The public and the markets have been surprised that inflation continued to rise despite significant interest rate increases. However, as the BDBR has explained in its various communiqués, monetary policy works with a lag. Just as in 2022 economic activity recovered to a level above the pre-pandemic level, driven, along with other factors, by the monetary stimulus granted during the pandemic period and subsequent months, so too the effects of the current restrictive monetary policy will gradually take effect. This will allow us to expect the inflation rate to converge to 3.0% by the end of 2024 as is the BDBR’s purpose.Inflation results for January and February of this year showed declining marginal increases (13 bp and 3 bp respectively) compared to the change seen in December (59 bp). This suggests that a turning point in the inflation trend is approaching. In other Latin American countries such as Chile, Brazil, Perú, and Mexico, inflation has peaked and has begun to decline slowly, albeit with some ups and downs. It is to be expected that a similar process will take place in Colombia in the coming months. The expected decline in inflation in 2023 will be due, along with other factors, to lower cost pressure from abroad as a result of the gradual normalization of supply chains, the overcoming of supply shocks caused by the weather, and road blockades in previous years. This will be reflected in lower adjustments in food prices, as has already been seen in the first two months of the year and, of course, the lagged effect of monetary policy. The process of inflation convergence to the target will be gradual and will extend beyond 2023. This process will be facilitated if devaluation pressure is reversed. To this end, it is essential to continue consolidating fiscal sustainability and avoid messages on different public policy fronts that generate uncertainty and distrust. 1 This Report to Congress includes Box 1, which summarizes the trajectory of Banco de la República over the past 100 years. In addition, under the Bank’s auspices, several books that delve into various aspects of the history of this institution have been published in recent years. See, for example: Historia del Banco de la República 1923-2015; Tres banqueros centrales; Junta Directiva del Banco de la República: grandes episodios en 30 años de historia; Banco de la República: 90 años de la banca central en Colombia. 2 This is why lower inflation has been reflected in a reduction of income inequality as measured by the Gini coefficient that went from 58.7 in 1998 to 51.3 in the year prior to the pandemic. 3 See Gómez Javier, Uribe José Darío, Vargas Hernando (2002). “The Implementation of Inflation Targeting in Colombia”. Borradores de Economía, No. 202, March, available at: https://repositorio.banrep.gov.co/handle/20.500.12134/5220 4 See López-Enciso Enrique A.; Vargas-Herrera Hernando and Rodríguez-Niño Norberto (2016). “The inflation targeting strategy in Colombia. An historical view.” Borradores de Economía, No. 952. https://repositorio.banrep.gov.co/handle/20.500.12134/6263 5 According to the IMF, the percentage change in consumer prices between 2021 and 2022 went from 3.1% to 7.3% for advanced economies, and from 5.9% to 9.9% for emerging market and developing economies. 6 https://www.banrep.gov.co/es/noticias/junta-directiva-banco-republica-reitera-meta-inflacion-3