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In this paper, we broaden the debate on the determinants of bank excess liquidity by focusing on a new mechanism. Using time series data from six CEMAC countries and using shock simulation in a structural VAR as well as Cointegration analysis in an ARDL model, the empirical analysis shows that the financial rigidity caused by the increase in the information asymmetry premium leads to a fall in investment which weakens economic activity. The fall in economic activity amplifies the increase in information asymmetry premium resulting in an increase of free reserves. Finally when the effect of the financial accelerator is reduced by stretching the information asymmetry premium towards zero, then the refunding policy through calls to tender favors a decrease of interest rates, a profusion of credit and consequently the increase of investments and consumption. We suggest all measures aimed at reducing the asymmetry of information on the credit market, in particular, the creation of credit offices and / or public credit registers, the creation of rating agencies for companies and individuals, improvement of the quality of institutions whose poor quality leads to the camoufl age of information and moral hazards.

Keywords: financial accelerator, bank excess liquidity, information asymmetry premium, key interest rates.

JEL classification: E6 E30 E32 E44

The purpose of this article is to examine the impact of selected internal and external factors on a bank’s profitability. The research investigates the impact of size; liquidity; operating costs; deposits; credits; GDP growth and inflation change of the profitability of sample of 11 banks in Tunisia for the period (2000…2018). The determinants were used to construct 2 models with ROA and ROE as a proxies and regression analysis using panel approach. We found that size; bank deposit; operating costs; liquidity; economic growth have a significant impact on bank

profitability measured by (ROA and ROE).

Keywords: Profitability; ROA; ROE; Panel, bank, profitability

JEL classification: G21, G23; D08

The purpose of this research was to consider the influence of financial development on Tanzania’s tax revenue. To accomplish the intent of this study, the main specific objective was concerned about the effect of financial depth on tax revenue in Tanzania.

Design/methodology: This study adopted quantitative approach and time series as research design, this study was conducted in Tanzania. Because of the accessibility of the data for the time of 1996-2020.The annual time series data for the Tanzanian financial development and tax revenue were obtained from secondary sources which include the World Development Indicators (WDI) and Tanzania Revenue Authority (TRA). The method was employed to make the

estimation is the Dynamic Ordinary Least Square (DOLS).

Findings: The financial characteristics were considered to be relevant tax revenue parameters based on the study’s aims. As a consequence, the examination of the estimation findings revealed that financial depth had a beneficial influence on increasing tax revenue in Tanzania. As a result, this paper recommends that the government place a greater emphasis on financial development, as it may be a vital instrument for increasing tax revenue for social welfare, poverty reduction, and macroeconomic stability. The Bank of Tanzania has maintained its monetary policy stance, which aims to increase lending to the private sector to encourage economic activity.

Keywords: Financial development, financial stability and depth, tax revenue, DOLS, Tanzania

Given the importance of the economic indicators on the economic growth in Bangladesh, this paper examines the shortrun and long run causality between remittance, imports, exports and GDP growth of Bangladesh using the data over the liberalized period 1976-2016. Applying the Johansen cointegration and elasticity concept, this study finds that variables are cointegrated as well a long run nexus between exports, imports, remittances and GDP growth in Bangladesh. Besides, the Granger Causality test in a VECM (Vector Error Correction Model) framework, this study finds unidirectional causality from import to growth in Bangladesh. The hardly surprising result, remittance does not show any feedback effect/causality in both the short run and long run. The possible interpretation may be that remittances mainly benefit the individual receivers. The finding also explores that exports, imports and remittances endorse each other in the short run.

Keyword: Economic growth (GDP); Export; Import; Remittance; Granger Causality test; Vector Error Correction (VECM); Cointegration; Unit root test; ADF (Augmented Dicky-Fuller) test, Phillips-Perron (PP) test; elasticity.