Governments economic recovery policy such as domestic debt exchange program (DDEP) significantly influences the patronage of digital financial products, and services in developing economies. This often led to a weakening of financial institutions ' capital and overall performance. Using dual analysis, this study applies both qualitative and quantitative approaches to analyze the impacts of DDEP through the Lense of digital financial technology applications by financial institutions and conducted both regression and data envelopment analysis. Using the smartPLS model, paths were created to identify and analyze key impacting factors. A bootstrapping of 333 samples was carried out using selected financial institutions in a DDE implemented economy, weighing each case, where t = 1.96 significant value was taken and a p-value <0.05 was also considered to be statistically significant. The study assumed that an efficient DEA is achieved if the DMUO has an ideal solution of µ*, v* in model two and µ* > 0 and v* > 0 and includes a Ɵ*, ƛ*, ƛ* ideal solution. The study found that DDEP can have 15 negative impacts on financial institutions' performance. Also, most financial institutions were found to be inefficient in applying technology to mitigate the negative effects DDEP. Further, despite the introduction of advanced technology financial, the study results showed that nonperforming loans increased between 25% to 35% within twelve months of introducing the DDE, meaning financial institutions are unable to collect both principal and interest on loans by capitalizing technology on during the DDE program. Also, the sector collectively can suffer a sharp increase in impairment loss on financial assets by over 92% during DDE program. In addition, DDEP can caused between 48.5% to 5.68% sharp decline to return on assets.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 6) |
| DOI | 10.11648/j.ijefm.20241206.19 |
| Page(s) | 451-465 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Domestic Debt Exchange, Digital Financial Technology, Financial Performance, Financial Institutions, Economies
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APA Style
Asare, J., Ntiamoah, J. A., Ampong, G. O., Arhenful, P., Nkyi, J. A. (2024). Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era. International Journal of Economics, Finance and Management Sciences, 12(6), 451-465. https://doi.org/10.11648/j.ijefm.20241206.19
ACS Style
Asare, J.; Ntiamoah, J. A.; Ampong, G. O.; Arhenful, P.; Nkyi, J. A. Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era. Int. J. Econ. Finance Manag. Sci. 2024, 12(6), 451-465. doi: 10.11648/j.ijefm.20241206.19
AMA Style
Asare J, Ntiamoah JA, Ampong GO, Arhenful P, Nkyi JA. Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era. Int J Econ Finance Manag Sci. 2024;12(6):451-465. doi: 10.11648/j.ijefm.20241206.19
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Download@article{10.11648/j.ijefm.20241206.19,
author = {Joseph Asare and Jones Adjei Ntiamoah and George Oppong Ampong and Peter Arhenful and Joseph Akwasi Nkyi},
title = {Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era
},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {12},
number = {6},
pages = {451-465},
doi = {10.11648/j.ijefm.20241206.19},
url = {https://doi.org/10.11648/j.ijefm.20241206.19},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241206.19},
abstract = {Governments economic recovery policy such as domestic debt exchange program (DDEP) significantly influences the patronage of digital financial products, and services in developing economies. This often led to a weakening of financial institutions ' capital and overall performance. Using dual analysis, this study applies both qualitative and quantitative approaches to analyze the impacts of DDEP through the Lense of digital financial technology applications by financial institutions and conducted both regression and data envelopment analysis. Using the smartPLS model, paths were created to identify and analyze key impacting factors. A bootstrapping of 333 samples was carried out using selected financial institutions in a DDE implemented economy, weighing each case, where t = 1.96 significant value was taken and a p-value 0 and v* > 0 and includes a Ɵ*, ƛ*, ƛ* ideal solution. The study found that DDEP can have 15 negative impacts on financial institutions' performance. Also, most financial institutions were found to be inefficient in applying technology to mitigate the negative effects DDEP. Further, despite the introduction of advanced technology financial, the study results showed that nonperforming loans increased between 25% to 35% within twelve months of introducing the DDE, meaning financial institutions are unable to collect both principal and interest on loans by capitalizing technology on during the DDE program. Also, the sector collectively can suffer a sharp increase in impairment loss on financial assets by over 92% during DDE program. In addition, DDEP can caused between 48.5% to 5.68% sharp decline to return on assets.
},
year = {2024}
}
TY - JOUR T1 - Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era AU - Joseph Asare AU - Jones Adjei Ntiamoah AU - George Oppong Ampong AU - Peter Arhenful AU - Joseph Akwasi Nkyi Y1 - 2024/12/07 PY - 2024 N1 - https://doi.org/10.11648/j.ijefm.20241206.19 DO - 10.11648/j.ijefm.20241206.19 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 451 EP - 465 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20241206.19 AB - Governments economic recovery policy such as domestic debt exchange program (DDEP) significantly influences the patronage of digital financial products, and services in developing economies. This often led to a weakening of financial institutions ' capital and overall performance. Using dual analysis, this study applies both qualitative and quantitative approaches to analyze the impacts of DDEP through the Lense of digital financial technology applications by financial institutions and conducted both regression and data envelopment analysis. Using the smartPLS model, paths were created to identify and analyze key impacting factors. A bootstrapping of 333 samples was carried out using selected financial institutions in a DDE implemented economy, weighing each case, where t = 1.96 significant value was taken and a p-value 0 and v* > 0 and includes a Ɵ*, ƛ*, ƛ* ideal solution. The study found that DDEP can have 15 negative impacts on financial institutions' performance. Also, most financial institutions were found to be inefficient in applying technology to mitigate the negative effects DDEP. Further, despite the introduction of advanced technology financial, the study results showed that nonperforming loans increased between 25% to 35% within twelve months of introducing the DDE, meaning financial institutions are unable to collect both principal and interest on loans by capitalizing technology on during the DDE program. Also, the sector collectively can suffer a sharp increase in impairment loss on financial assets by over 92% during DDE program. In addition, DDEP can caused between 48.5% to 5.68% sharp decline to return on assets. VL - 12 IS - 6 ER -
Accounting Banking and Finance, Ghana Communication Technology University, Accra, Ghana
Accounding, Accra Technical University, Accra, Ghana
Accounting Banking and Finance, Ghana Communication Technology University, Accra, Ghana
Accounding, Accra Technical University, Accra, Ghana
Accounting Banking and Finance, Ghana Communication Technology University, Accra, Ghana
