Financial Knowledge,Capability to Guard Against Risks,and Rural Households’Selection of Financial Assets:An Empirical Study Based on Rural Households in China

Based on rural household data collected in two rounds of the China Household Finance Survey(CHFS)in 2015 and 2017,respectively,this paper presents the likely impact of financial literacy and capability against risks on the breadth and depth of participation by rural households in risky financial markets.After instrumental variables are used to solve endogenous problems,we find that a good command of financial knowledge and a higher risk management level could significantly increase the probability and proportion of rural households investing in risky financial assets.A mechanism analysis further reveals that financial knowledge motivates rural households to engage in financial investments by helping them evaluate their capability to guard against risks.After multiple dimensions of indicators are employed to measure financial knowledge,the estimated results remain stable.In view of this,we have put forward some policy suggestions to increase the property income of rural households and promote the rural financial market.

Financial assets owned by Chinese residents to surpass 7,000 billion yuan this year

According to forecasts by relevant experts, the financial assets owned by Chinese residents will hit 7,211 billion yuan this year, a 17 per cent increase over last year or 16.4 per cent more after deduction of price factors. So far as the structure of these financial assets is concerned, bank savings deposits by Chinese residents will grow by 17.2 per cent to 5,426 billion yuan by the end of this year, accounting for 75.2 per

Analyzing China's Non-performing Financial Assets

The non-performing assets of China’s financial institutions totaled RMB l,800 billion. Has this threatened the safety of China’s financial industry? Where do this large amount of nonperforming assets come from?

Social interactions in periodic urban markets and their contributions to sustainable livelihoods:Evidence from Ghana

Periodic markets are an important aspect of local economies,providing a platform for farmers(producers),wholesalers,retailers,and consumers to interact face-to-face and exchange goods and services.These markets have been increasing in urban areas in Africa,Asia,and South America because of urbanization.The increase of periodic urban markets(PUMs)in urban areas is observed as an index of modernization,reflecting a response to transition process.However,there are limited studies on how social interactions in PUMs contribute to sustainable livelihoods.This study investigated the types of social interactions occurring in PUMs in Ghana,the benefits of social interactions for participants of PUMs,and how social interactions contribute to sustainable livelihoods.This research interviewed 162 participants,comprising 27 farmers(farmers were regarded as producers in this study),61 retailers,47 wholesalers from 9 selected PUMs across Ghana,and 27 officers from government institutions and non-governmental market associations to obtain their opinions.We analyzed the interview data using the NVivo software.The results showed that there are seven kinds of social interactions in PUMs,including(i)producer-wholesaler relationship,(ii)producer-consumer relationship,(iii)wholesaler-retailer relationship,(iv)retailer-consumer relationship,(v)trader-driver relationship,(vi)trader-institution relationship,and(vii)trader-international buyer relationship.We found that these social interactions in PUMs enhance sustainable livelihoods by supporting human,social,financial,natural,and physical assets of traders(traders refer to producers,wholesalers,and retailers in this study).Therefore,we concluded that the development of policies to improve PUMs could strengthen social interactions,enabling the achievement of sustainable livelihoods in developing countries.

Importance of Balance Sheet Composition in Stress Test Estimates

The stress tests are based on macroeconomic variables for the estimations of the results.However,there are other factors that may influence them.This paper studies the influence of the balance sheet structure in the NPL and the loss caused by the NPL using econometric models.The objective is to research how they affect the aggregates in the balance sheet to the delay in payment and the the provision for impairment,distinguishing these effects according to the economic cycle,so that can be applied to the stress test.The results show that the Balance sheet structure is important in delinquency and losses caused by it,especially in respect of stockholders'funds,ECB resources and the account Non-current assets held for sale.It also highlights the influence of the economic cycle and the different behavior of the NPL and the losses due to default with respect to the same explanatory variables.