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Purpose: This study examines the influence of bank credit to the private sector and financial deepening on economic growth in Nigeria using annual time series data from 1990 to 2021.   Theoretical Framework: The study anchored on the supply-leading hypothesis which postulated that financial system fosters economic growth. It also argued that financial deepening drives economic growth in a nation.   Design/Method/Approach: The study adopted MacKinnon (1996) residual cointegration test to investigate if the variables are cointegrated. Also, autoregressive distributed lag model suggested by Pesaran et al. (2001) was adopted to analyze the existing relationship between the variables, while the ARDL bound test approach was utilized to examine the existing long run relationship.   Findings: The ARDL findings show that bank credit to the private sector (as a percentage of GDP) and financial deepening proxy with the ration of money supply had a significant impact on economic growth, while the bound test confirmed a long-term association between the variables in the model. According to the short-run coefficient of the error correction model (ECM), there will be a 68% correction to the rate of adjustment from the short-run to the long-run.   Research, Practical & Social implications: The information provided by the current study is crucial to enhancing the conditions for Central Bank of Nigeria to grant loans and credits to businesses and people with solid business plans. Additionally, it makes recommendations for coordinated and synergistic policies that might strengthen the banking system and promote the expansion of the financial system.   Originality/value: The current study is important because it investigates the long-term relationship between the repercussions of the financial system's bubble and economic growth. Furthermore, the study used a parametric method and processes to investigate the long-term correlations between bank loans, financial bubble measures, and economic development.

This article provides an empirical analysis of the relationship between financial development and economic growth, using a sample of nine countries in the Western Balkans from 1995–2022. The study addresses the gap in the literature on financial deepening in the region, specifically regarding its impact on economic development and the Euro-integration status. A novel approach is used to construct the Financial Development Index employing principal component analysis, utilizing a comprehensive matrix of financial proxies for both financial institutions and markets, not previously used in the literature. Results of the dynamic generalised method of moments estimation confirm a significant positive impact of financial deepening on economic growth and income per capita. The positive quadratic term of financial deepening suggests that financial development fosters economic growth. Furthermore, European member states have not yet reached a level of financial development, where the effects of “too much finance” would appear, implying that European integration has not deepened financial development.

This study examines the impact of monetary policy shocks and financial deepening on economic growth in Tanzania using a machine learning approach, focusing on XGBoost regression. By leveraging quarterly macroeconomic data, the study explores how changes in interest rates, money supply and inflation influence private sector credit expansion (financial deepening) and, in turn, GDP growth. The XGBoost model effectively captures complex, nonlinear relationships, providing deeper insights into the interactions between monetary policy decisions and economic performance. The results indicate that monetary policy variables dominate GDP growth, while financial deepening contributes positively but with lower influence in the short term. A Difference-in-Differences (DiD) analysis also reveals that monetary policy shocks negatively impact GDP growth. At the same time, the SARIMAX model suggests that GDP follows a predictable yet mean-reverting pattern, with weak persistence of external shocks. These findings underscore the critical role of monetary policy in macroeconomic management and highlight the need for data-driven policy interventions to enhance financial deepening and economic stability. This study offers new insights into how monetary policy shocks impact economic growth in Tanzania by incorporating machine learning techniques into macroeconomic analysis. Using XGBoost and SARIMAX models, the research uncovers the nonlinear and dynamic interactions between interest rates, money supply, inflation, and financial deepening. The findings reveal that monetary policy variables are the dominant short-term drivers of GDP growth, while financial deepening contributes more gradually over time. By adopting a data-driven approach, this work enhances the understanding of Tanzania's monetary transmission mechanism and provides policymakers with robust evidence for designing more effective and adaptive macroeconomic strategies.

Type of the article: Research Article AbstractFinancial technology has become a top priority and a vital avenue for banking institutions seeking financial development and enhanced services. Financial technology is using a new digital transformation in the financial services industry. The study aims to investigate the dynamic effect of financial technology tools on financial development, examining both the long-run and short-run perspectives. The study used an ex-post facto research design because the data already existed and were retrieved from the Central Bank of Nigeria’s statistical bulletin. The Autoregressive Distributed Lag (ARDL) model was employed to examine the impact of financial technology policy tools and financial development from the first quarter to the fourth quarter of 2013–2023. The long-run results revealed that financial technology positively impacted financial development, where a 1% increase in financial technology led to a 20.33% (p-value = 0.4123) increase in financial development, though statistically insignificant. In the short run, financial technology positively impacted financial development, where a 1% increase in financial technology led to a 6.57% (p-value = 0.0053) increase in financial development. The results showed a statistically significant relationship between biometric authentication devices, point of sale, web-based transactions, and mobile banking on money supply to gross domestic product in the short run, suggesting that financial technology drives financial development, enhancing access to financial services, and improving efficiency. Banks should continuously strengthen the adoption of financial technology tools that would promote banks’ efficiency.

Purpose This paper aims to investigate the impacts of financial development through commercial banks on poverty conditions in India. Design/methodology/approach Using unbalanced panel data for Indian states and union territories from 1973 to 2004, and applying the generalized method of moments estimation, the author estimates models in which the poverty ratio is explained by financial inclusion and financial deepening for public sector banks and private sector banks, respectively. Findings The results show that financial inclusion and deepening have statistically significant negative relationships with the poverty ratio for public sector banks, but not for private sector banks. In addition, the coefficients of the interaction term between financial inclusion and deepening are estimated to be negative and statistically significant in most cases of public sector banks. Considering the positive impacts of financial inclusion and deepening on poverty reduction, this result implies that promoting breadth and depth of public sector banks could have a synergistic effect on poverty reduction in India. Originality/value First, unlike previous studies, the author applies both the numbers of bank branches and accounts as the measure of accessibility and usage of banking services. Second, using the interaction term between financial inclusion and deepening, the author empirically analyzes whether, and to what extent, the breadth and depth of the banking sector interact with each other in the process of poverty reduction. Third, the author divide the Indian commercial banks into public sector banks and private sector banks and compares their impacts of financial inclusion and deepening on poverty conditions.

The study examined the dynamic nexus between financial deepening, natural resource rent, nonrenewable-energy and renewable-energy consumption and CO2 emission by using a dataset of six GCC countries (UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain) from 1993 to 2019. For estimation, study applying second-generation panel unit root, cointegration and long-run estimation tests for robust and efficient results. The study confirms the presence of cross-sectional dependency while economic expansion and nonrenewable-energy contribute to CO2 emissions, financial deepening and renewable-energy consumption have a significant impact on reducing environmental degradation. Furthermore, the Dumitrescu-Hurlin causality test reveals a statistically significant bidirectional correlation between financial deepening, consumption of nonrenewable-energy and renewable-energy and CO2 emission. In light of these findings, a number of policy recommendations are provided to help the GCC countries overcome on CO2 emissions while promoting economic growth.

Energy availability and the selection of suitable energy sources have substantial implications on both economic and environmental sustainability, and it is because the environmental protection cost is directly linked to overall energy inclusion in the economy. Thus, the importance of clean energy has been noticed in the literature regardless of the economic structure. The purpose of the study is to discover the effects of financial deepening (FD), urbanization (UR), and institutional quality (IQ) on China’s energy consumption. Annual time series date for 1985 to 2019 utilized for documenting the coefficients of explanatory variables by implementing both linear and nonlinear Autoregressive Distributed Lagged (ARDL) and the Fourier-TY causality test. In terms of the test statistics for combined and Maki cointegration, the study revealed that a long-run association prevails in the empirical nexus. Moreover, the symmetric and asymmetric framework established long-run associations. Referring to the coefficients of financial deepening, UR, and governmental effectiveness, the study found a statistically significant and favorable impression of REC. While financial deepening and governmental effectiveness unveiled negatively influenced NREC and fossil energy consumption. The asymmetric linkage between explained and explanatory variables was confirmed through the execution of a standard weld test with a null symmetry. The asymmetry coefficients of FD, UR, and IQ were positive and statistically significant at the 1% level in both the long and short runs. The directional causality revealed feedback hypothesis holds in understanding the causal relationship between explanatory factors and RE usage. The policy recommendations for the future were generated from the research findings.

This paper examines the impact of financial deepening on energy technology green innovation over the period 1996 to 2020. Utilizing the nonlinear QARDL technique, we assess the asymmetric short and long-term impacts across various quantiles. The research employs two measures of financial deepening, namely financial institution deepening (FID) and financial market deepening (FMD). The findings reveal that a positive change in the FID causes energy green innovation to rise, while a negative change in the FID causes energy green innovation to fall in the long run at most quantiles. Further, we find that the rise in the FMD help improves energy green innovation; however, the fall in the FMD does not significantly impact energy green innovation at all quantiles. Based on the findings, our research will help policymakers to develop valuable policies for financial deepening to enhance energy green innovation.

This study extends the limited evidence of the China context by establishing a panel fixed-effect model to identify the nexus between financial deepening and carbon emissions. Using newly compiled city-level (287 prefecture-level and above cities) and enterprise-level (resource enterprises listed on the Chinese A-shares) datasets from 2007 to 2019, this study quantitatively evaluated finance deepening and analysed the impact of financial deepening on carbon emissions in China, with a particular consideration of green innovation. Our results document that financial deepening contributes to carbon reductions, as shown by the considerably decreased carbon dioxide (CO2) emissions. Both the city-level and enterprise-level estimates argue that financial deepening has a promoting effect on green innovation. Stimulating green innovation is identified as an important mechanism through which financial deepening can contribute to carbon reductions. Policy implications are presented based on the empirical results.

This study investigates the relationship between Internet usage, financial development, economic growth, capital and electricity consumption using quarterly data from 1993Q1 to 2014Q4. The integration order of the series is analysed using the structural break unit root test. The ARDL bounds test for cointegration in addition to the Bayer–Hanck ( 2013 ) combined cointegration test is applied to analyse the existence of cointegration among the variables. The study found strong evidence of a long-run relationship between the variables. The long-run results under the ARDL framework confirm the existence of an inverted U-shaped relationship between financial development and electricity consumption, not only in the long-run, but also in the short-run. The study also confirms the existence of a U-shaped relationship between Internet usage and electricity consumption; however, the effect is insignificant. Additionally, the influence of trade, capital and economic growth is examined in both the long run and short run (ARDL-ECM). Finally, the results of asymmetric causality suggest a positive shock in electricity consumption that has a positive causal impact on Internet usage. The authors recommend that the Turkish Government should direct financial institutions to moderate the investment in the ICT sector by advancing credits at lower cost for purchasing energy-efficient technologies. In doing so, the Turkish Government can increase productivity in order to achieve sustainable growth, while simultaneously reducing emissions to improve environmental quality.