Journal articles: 'Accounting in banks'

1

Du, Chan, Liang Song, and Jia Wu. "Bank accounting disclosure, information content in stock prices, and stock crash risk." Pacific Accounting Review 28, no. 3 (August 1, 2016): 260–78. http://dx.doi.org/10.1108/par-09-2015-0037.

Full text

Abstract:

Purpose This paper aims to examine how banks’ accounting disclosure policies affect information content in stock prices and stock crash risk. Design/methodology/approach This paper uses 1996-2013 as the sample period. The final sample includes 10,045 observations in 37 countries. This paper uses stock return synchronicity to measure information content in stock prices. This study uses the frequency difference between extremely negative and positive stock returns to measure stock crash risk. To measure the level of bank accounting disclosure, this research follows Nier and Baumann (2006) to construct an aggregate disclosure index based on inclusions and omissions of a series of items in a bank’s annual accounting reports. Findings This paper finds that banks’ stocks have lower stock return synchronicity and fewer extremely negative returns if banks have higher levels of financial statement disclosure. These results suggest that banks’ stocks have higher information content and lower crash risk if banks’ information environment is more transparent. Originality/value Overall, this paper provides new insight about how to increase banks’ transparency and the safety of the banking industry, which is beneficial to economic growth. To increase banks’ transparency and reduce the possibility of extremely negative stock returns, one way to regulate banks is to increase their accounting disclosure. In addition, the extant literature (Chen et al., 2006, Durnev et al., 2003, 2004; Wurgler, 2000) demonstrates that firms with lower stock return synchronicity have more transparent information environments and higher investment efficiency. Thus, this paper finds that higher levels of bank accounting disclosure are associated with lower stock return synchronicity, which further reduces banks’ opacity and increases banks’ investment efficiency. Finally, compared to business firms, stock crash risk has much direr consequences because one bank’s stock crash will affect overall financial stability. Thus, it is important for authorities to know the effects of accounting disclosure on bank stock crash risk.

APA, Harvard, Vancouver, ISO, and other styles

2

Kusano, Masaki. "Fair value accounting and procyclicality: accounting for securitization." Corporate Ownership and Control 11, no. 1 (2013): 535–47. http://dx.doi.org/10.22495/cocv11i1c6art1.

Full text

Abstract:

The purpose of this study is to examine whether fair value accounting promotes procyclicality by focusing on securitization transactions before the financial crisis. This study demonstrates the relationship between securitization accounting and procyclicality using a parsimonious model. The findings are as follows. Sale accounting increases the capital ratio compared with that before a securitization transaction. Banks’ executives have incentives to increase both assets and debt within the limits of their target capital ratio (leverage ratio) for executive compensation and market reputation; assets (lending) will be increased. When banks conduct securitization transactions and adopt sale accounting to enhance short-term profits, the capital ratio increases under the certain condition. Thus, banks will increase assets (lending) within the limit of their target capital ratio (leverage ratio). As banks increase and expand their lending during economic booms, the economic booms are accelerated. It is expected that both sale accounting and fair value accounting promote procyclicality during economic booms.

APA, Harvard, Vancouver, ISO, and other styles

3

Siswantoro, Dodik. "Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia." Journal of Islamic Accounting and Business Research 9, no. 3 (May 8, 2018): 434–47. http://dx.doi.org/10.1108/jiabr-11-2013-0040.

Full text

Abstract:

PurposeThis paper aims to analyze the need of Islamic banks for specific Statement of Financial Accounting Standards (SFAS) No. 110 for sukuk accounting in Indonesia. In fact, some Islamic banks have already prepared International Financial Reporting Standards (IFRS), and accordingly, a suitable standard is needed for this case. Design/methodology/approachThe research methodology involved interview with a senior accounting manager of an Islamic bank focusing on relevant topics in sukuk to sharpen the analysis. Equally important, research reviewed and compared financial statements on sukuk accounting among Islamic banks, before and after adoption of sukuk accounting standard. FindingsIFRS require market valuation based on interest rate. As interest rate is unlawful in Islamic teaching, IFRS may not accordingly be suitable. Therefore, SFAS No. 110 was issued by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia). Considering the fact that this standard did not explicitly adopt the IFRS paradigm, there have been consequent conflicts in Islamic bank management because of preference of global recognition to IFRS. Adopting IFRS would be more compatible with other countries’ general accounting standards. In addition, significant differences are found in sukuk accounting treatments by Islamic banks before and after the standard adoption. Research limitations/implicationsThis research only focuses on such question of why specific accounting standard for sukuk accounting is needed by Islamic banks in Indonesia, while only few Indonesian Islamic banks were initially aware of the issue. Originality/valueThis paper may be the first paper discussing the response to and need for sukuk accounting in Indonesian Islamic banks.

APA, Harvard, Vancouver, ISO, and other styles

4

Dinh, Tami, and Barbara Seitz. "The Information Content of Hedge Accounting—Evidence from the European Banking Industry." Journal of International Accounting Research 19, no. 2 (April 15, 2020): 91–115. http://dx.doi.org/10.2308/jiar-18-045.

Full text

Abstract:

ABSTRACT This paper provides an in-depth analysis of financial information related to hedge accounting in European banks from 2005 to 2014. We show that both “as-if” earnings and “as-if” book values excluding the effects of hedge accounting are less value relevant than reported figures. This indicates that hedge accounting information is valued by the market. Further, we develop a proxy to measure whether hedge accounting is economically favorable. Only if the effects of a bank's hedge accounting are economically favorable, hedge accounting disclosures are positively associated with market values. We find cross-sectional differences when adopting hedge accounting for subsample analyses of European regions. In addition, distinguishing between troubled and non-troubled banks, the results only hold for the latter category suggesting that troubled banks suffer from biased accounting information. Our results are important for standard setters and banks when seeking to understand the capital market effects of hedge accounting and their disclosures. JEL Classifications: G21; G28; M41. Data Availability: Data are available from the public sources cited in the text.

APA, Harvard, Vancouver, ISO, and other styles

5

Gláserová, Jana. "Accounting methodical approaches of business entities in comparisson to bank accounting and to insurance company accounting in the Czech Republic." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 58, no. 6 (2010): 133–42. http://dx.doi.org/10.11118/actaun201058060133.

Full text

Abstract:

Bank and insurance must follow the ACT on Accounting No.563/1991 in their financial statement preparation. Banks must use the special decree of Ministry of Finance for Banks and other financial institution due to their special operations and requirements Czech National Bank. The methodical approach to the valuation and recording of basic items balance sheet in banks and other financial institutions are compatible with IAS/IFRS. As well insurances must use special decree of Ministry of Finance for Insurances due to their special operations – cession of insurance. The paper is concerned with the basic items of balance sheet banks and insurances and its comparations with balance sheets of other business entities.

APA, Harvard, Vancouver, ISO, and other styles

6

Festić, Mejra. "THE ROLE OF THE FOREIGN BANKS IN THE 5 EU MEMBER STATES / UŽSIENIO BANKŲ VAIDMENS 5 EUROPOS SĄJUNGOS VALSTYBĖSE TYRIMAS." Journal of Business Economics and Management 13, no. 1 (February 21, 2012): 189–206. http://dx.doi.org/10.3846/16111699.2011.620156.

Full text

Abstract:

The article tests if foreign banks have lowered their market share in the Baltic States, Romania and Bulgaria during the recent financial crisis after 2007, due to the perception of risk exposure in local markets. It has been proved that, the credit supply by foreign banks in the Baltic States, Romania and Bulgaria has remained relatively stable during the latest crisis by TSLS method. Foreign ownership generally utilizes derivative products more than domestic banks in the NMSs because they have more expertise in hedging and can diversify risks effectively with their larger parent banks in their home country. The reaction of foreign banks abroad depends on the capital adequacy of the parent bank and the business opportunities in the host economies. Santrauka Straipsnyje analizuojamas užsienio bankų vaidmuo penkiose Europos Sąjungai priklausančiose valstybėse – Baltijos šalyse, Rumunijoje ir Bulgarijoje. Autorius tyrimui pasirinko užsienio bankų užimamos rinkos dalies vertinimą ir ekonomikos krizės poveikio nustatymą šių bankų veiklos rodikliams bei rinkos daliai. Gauti rezultatai parodė, kad kreditų pasiūla, teikiama užsienio bankų Baltijos šalyse, Rumunijoje ir Bulgarijoje, išliko palyginti stabili. Tai galima susieti su tuo, kad užsienio bankai taiko ir naudoja išvestinius produktus, motyvuodami tuo, jog turi daugiau patirties ir gali diversifikuoti riziką, efektyviai naudodami juos remiančių savos šalies („motininių“) bankų finansinius išteklius. Tyrimas taip pat parodė, kad užsienio bankų reakcija į rinkos pasikeitimus vienoje ar kitoje valstybėje tiesiogiai priklauso nuo „motininio“ banko kapitalo pakankamumo ir ekonominių verslo sąlygų toje šalyje.

APA, Harvard, Vancouver, ISO, and other styles

7

Cucinelli, Doriana. "Can speed kill?" Journal of Risk Finance 17, no. 5 (November 21, 2016): 562–84. http://dx.doi.org/10.1108/jrf-03-2016-0035.

Full text

Abstract:

Purpose This study aims to analyze bank lending behavior before and during the most recent financial crisis. Banks are more willing to grant loans during economic expansion. However, this behavior can result in reduced portfolio asset quality. The analysis tries to facilitate understanding of whether this relationship is always true. A second aim of the study is to highlight whether the impact of credit risk on bank lending behavior during a financial crisis is greater for banks that grew faster during the pre-crisis period than for other banks. Design/methodology/approach The analysis is based on a sample of banks in Italy, an example of a country undergoing a credit crunch without a lending bubble burst. The methodology is based on a panel regression and author uses different models to test his hypothesis: an ordinary least squares, a fixed effect, a least absolute regression and a Generalized Method of Momentum (GMM). This allows to mitigate some of the endogeneity problems. Findings The essay shows that effectively, most of the banks that grew faster during a pre-crisis period show a higher growth of non-performing loans and a greater reduction in lending activity during a financial crisis. However, 34 per cent of banks that grew faster during a pre-crisis period have a low growth of non-performing loans in the subsequent years. Finally, the results suggest that credit risk negatively affects bank lending behavior, but a higher impact relative to fast banks with respect to other banks cannot be emphasized. Practical implications Findings have some policy implications. First, given the adverse effect of the increase of non-performing loans (NPLs) on the bank’s lending activity and on the broad economy in general, there is merit to strengthen supervision to prevent a further increase and accumulation of NPLs in the bank’s credit portfolio. In addition, the supervisors could require that banks take always high credit standard when extend credit, both during positive economic cycle and during period of contraction. The using of higher credit standard could be helpful in the reduction of the pro-cyclicality of bank’s lending behavior and credit risk. Furthermore, the fact that high level of NPLs continues to impact on the bank’s lending activity and that this activity is very important for the economic recovery underlines that banks should clean-up their credit portfolios as soon as possible. Originality/value This paper contributes to the literature in various ways. The study analyzes the cyclical effect of credit growth, i.e. banks increase their bank lending behavior during good times, which leads to an increase in bad loans and a high credit risk in their portfolio. These cyclical effects are not knowingly studied together, but the literature usually analyzes the single steps of the cycle. Second, studying listed and unlisted banks allows to have a more representative sample and to analyze better the real bank lending activity considering both commercial than cooperative banks.

APA, Harvard, Vancouver, ISO, and other styles

8

Karki, Chitra Bahadur. "Management Accounting Practice in Nepalese Commercial Banks." Journal of Management 4, no. 1 (August 3, 2021): 51–64. http://dx.doi.org/10.3126/jom.v4i1.38661.

Full text

Abstract:

The paper aims to analyze the management accounting practice in Nepalese commercial banks. Primary data have been collected by using interview method and structured questionnaire. The accounting and audit department staff in the sample banks were served with questionnaires. The descriptive survey research has been utilized in this research. The study employed the simple percentage and simple average to analyze the research questions. A sample of six numbers Nepalese commercial banks has been considered with convenience sampling technique. The study foundthat various management accounting tools are in practice in Nepalese commercial banks and maximum Nepalese commercial banks use more than one management accounting tools.In addition, management accounting is important to Nepalese commercial banks’ management for planning, evaluating, controlling and decision making and there are various problems in practicing management accounting tools in Nepalese commercial banks, such as lack of expertise, lack of information about tools, lack of top management’s committee, accounting provisions of NRB, tax law compliances, high cost and so on.

APA, Harvard, Vancouver, ISO, and other styles

9

Jati, Ahmad Waluyo, Eny Suprapti, and Satria Budi Wicaksono. "Kajian atas Standar Pelaporan Keuangan Bank Perkreditan Rakyat : Komparasi Antara PSAK No. 31, SAK ETAP, dan Pedoman Akuntansi Bank Perkreditan Rakyat." Jurnal Reviu Akuntansi dan Keuangan 1, no. 2 (October 11, 2011): 141. http://dx.doi.org/10.22219/jrak.v1i2.518.

Full text

Abstract:

The purpose of this study is to describe Rural Bank’s financial reporting based on PSAK No.31 and SAK ETAP then describe the comparison between the Rural Bank of PSAK No. 31, SAK ETAP and Accounting Manual of Rural Banks (BPR PA). In this research, the author uses PSAK No.31, SAK ETAP and Accounting Manual of Rural Banks (BPR PA) as the unit of analysis. In PSAK No.31 provision is recognized as a liability, while at the SAK ETAP in accordance with accounting guidelines Rural Banks (BPR PA) is recognized as a reduction of asset loans. At SAK ETAP also lost the deferred tax expense, and be an advanced standard of one step compared to PSAK because there was no fundamental error and extraordinary gain or loss. While in terms of measurement, the two standards had been worth it, only SAK ETAP is a standard that is more simple with the simplicity of measurement and reduce the disclosure. The financial statements are also presented based on the characteristics and order of liquidity. In the SAK ETAP presentation of financial statements was not described in detail, requiring the accounting guidelines of Rural Banks (BPR PA) as a companion, so the information was presented in a transparent, accurate, and reliable. Keywords : PSAK No. 31, SAK ETAP, Accounting Manual of Rural Banks (BPR PA), recognition, measurement, presentation, disclosure.

APA, Harvard, Vancouver, ISO, and other styles

10

Downing, Jeff. "Fair-value accounting, asset sales and banks’ lending." Studies in Economics and Finance 35, no. 1 (March 5, 2018): 163–77. http://dx.doi.org/10.1108/sef-10-2017-0294.

Full text

Abstract:

Purpose This paper aims to examine the interaction between fair-value accounting, asset sales and banks’ lending in booms and busts. Throughout, the author uses “fair value” and “mark-to-market” interchangeably, to denote an accounting regime where changes in the prices of banks’ assets affect regulatory capital. “Historic-cost accounting” has been used in the paper to denote an accounting regime where changes in asset prices do not affect regulatory capital. Design/methodology/approach The author built a model that examines how the accounting regime affects banks’ incentives to sell assets and how the impact of the accounting regime on asset sales affects lending. Findings In a bust, fair value strengthens banks’ incentives to sell assets. The resulting increase in sales increases banks’ lending capacity. Consequently, lending can be higher under fair value. Conversely, in a boom, historic cost strengthens banks incentives to sell assets. The resulting increase in sales increases banks’ lending capacity. Hence, lending can be higher under historic cost. Originality/value This paper identifies a new channel through which the accounting regime could affect lending. The accounting regime can affect banks’ incentives to sell assets. The resulting difference in sales can affect banks’ ability to make new loans. Hence, in a boom, although banks book mark-to-market gains under fair value, asset sales could be higher under historic cost. Lending, thus, could be higher under historic cost. Conversely, in a bust, although banks book mark-to-market losses under fair value, sales could be higher under fair value. Lending, thus, could be higher under fair value.

APA, Harvard, Vancouver, ISO, and other styles

11

Omer Khalid, Waleed Eltayeb. "Role of actuarial accounting in enhancing banks performance." Global Journal of Economics and Business 9, no. 2 (October 2020): 452–57. http://dx.doi.org/10.31559/gjeb2020.9.2.16.

Full text

Abstract:

This study aims to shed light on the significance of actuarial science in the banking sector from an accounting point of, And try to find out of the role he plays of actuarial accountant in the Sudanese banking sector and added value that he can add especially In light of a local economy which suffers from violent economic fluctuations that cast a shadow over on. financial stability, and the extent of its ability and contribution to the effectiveness of performance. The study found that Actuaries are active in banking roles despite the weakness of the actuaries who work in the banking sectors in sudan, The study also showed there's a direct relationship between economic fluctuation risks and financial crises need to adopt actuarial accounting methods, also, they have a major role to play to supports the improvement of the quality of financial reporting. The Study recommended necessity of educating decision- makers in the banking sector on the importance of actuarial science and actuarial accountants, who play a key role through actuarial methods that effectively contribute to the bank's ability to overcome economic fluctuations and financial crises.

APA, Harvard, Vancouver, ISO, and other styles

12

Reem Mohammed Al-Balawi, Reem Mohammed Al-Balawi. "Accounting for Social Responsibility and Its Applicability in Islamic banks: An Analytical Study in Saudi Arabia: محاسبة المسؤولية الاجتماعية ومدى تطبيقها في البنوك الاسلامية: دراسة تحليلية في المملكة العربية السعودية." مجلة العلوم الإقتصادية و الإدارية و القانونية 5, no. 14 (July 30, 2021): 151–74. http://dx.doi.org/10.26389/ajsrp.v201120.

Full text

Abstract:

The study aimed to identify the understanding Islamic banks in Saudi Arabia of the concept of social responsibility accounting, identify the most important obstacles to the application of social responsibility accounting in Islamic banks in Saudi Arabia, and to know the extent to which Islamic banks in Saudi Arabia apply social responsibility accounting with its three areas of (community service, human resources, and customers). The study used the descriptive analytical approach, the sample of the current study consisted of (102) employees of Islamic banks in Saudi Arabia. The results of the study showed that Islamic banks in Saudi Arabia are aware about the concept of social responsibility accounting, and there are many obstacles to the application of social responsibility accounting in banks, and the results showed that the application of banks of the areas of social responsibility accounting (customers, human resources, community service) with a high degree. The study recommended the development of the trends of economic institutions towards the use of the social responsibility accounting system.

APA, Harvard, Vancouver, ISO, and other styles

13

Szydełko, Łukasz. "Bonds in the Cooperative Banks Policy Accounting." Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia 80 (2016): 177–84. http://dx.doi.org/10.18276/frfu.2016.2.80/2-19.

Full text

APA, Harvard, Vancouver, ISO, and other styles

14

Sanusi, Beshiru, and Prince Famous Izedonmi. "Nigerian Commercial Banks and Creative Accounting Practices." Journal of Mathematical Finance 04, no. 02 (2014): 75–83. http://dx.doi.org/10.4236/jmf.2014.42007.

Full text

APA, Harvard, Vancouver, ISO, and other styles

15

Meriläinen, Jari-Mikko. "Western European Stakeholder Banks’ Loan Loss Accounting." Journal of Financial Services Research 56, no. 2 (September 18, 2017): 185–207. http://dx.doi.org/10.1007/s10693-017-0283-4.

Full text

APA, Harvard, Vancouver, ISO, and other styles

16

Pokharel, Prakash. "Competitor Accounting (CA) of Joint Venture Banks." KMC Research Journal 3, no. 3 (June 13, 2019): 109–22. http://dx.doi.org/10.3126/kmcrj.v3i3.35718.

Full text

Abstract:

In order to facilitate the collection and analysis of accounting information related with the competitor in the context of strategic management accounting, the term competitor accounting has been developed. However, no empirical results are available as to the extent to which such information influences strategic decision behavior. Main purpose of this study is to explore the effect of competitor accounting on performance of the joint venture banks, and compare the effectiveness of competitor accounting between those banks. For this structured questionnaire survey with 133 staffs of the concerned banks as well as unstructured interview with 4 senior managers were conducted. Various published and unpublished reports like annual reports of the concerned banks were also used. From the study it is found out that levels of CA formalised application appear limited, especially when compared with a widely held managerial perception that significant benefits could derive from CA. The CA practices noted were conducted in an unstructured and ad hoc manner. CA does not have any effect on performance of Nepalese joint venture banks because of not applying any formalised CA application. The study had /some of the limitations generally associated with a qualitative as well as quantitative study. These limitations include the degree of subjectivity that is invoked when researchers interpret qualitative data, scarcity of various resources, and accuracy of secondary data. The study clarifies the notion of CA and provides an outline of CA management issues arising in the context of a joint venture banks. An outline is provided of those parts of a bank operation that are most likely to be more active in CA, together with empirically informed suggestions with respect to CA uses in a joint venture banks.

APA, Harvard, Vancouver, ISO, and other styles

17

AlSedya, Mohammed Ali. "Accounting Concepts Relevant to Application in Islamic Banks Comparing With Usury Banks." TANMIYAT AL-RAFIDAIN 27, no. 77 (March 1, 2005): 9–26. http://dx.doi.org/10.33899/tanra.2005.161615.

Full text

APA, Harvard, Vancouver, ISO, and other styles

18

Statovci, Bedri, Vlora Berisha, and Jetmira Tahirukaj. "Level of usage of income smoothing as a creative accounting tool by Balkan banks." Banks and Bank Systems 16, no. 3 (August 30, 2021): 63–70. http://dx.doi.org/10.21511/bbs.16(3).2021.06.

Full text

Abstract:

The main objective of this study is to find out if Balkan banks use income smoothing (IS) as a creative accounting practice. The IS level is analyzed to see whether banks are focused on these practices as a tool to produce a better picture of financial views in the sight of decision makers. The data are provided from the audited financial reports presented on the banks’ web pages. Eckel’s modified equation was used to find out if banks use the technique of IS. As a result, the findings showed that banks use IS, and the factors that influence the use of this practice are analyzed. The factors studied are: age of banks, profitability, and loan provision. Of a total of seven banks in Kosovo, only three use income smoothing. In Albania, of a total of 11 banks, only one uses income smoothing. Surprisingly, the results show that none of the variables measured affect the usage of income smoothing. The study contributes to understanding the practice of IS on the one hand, and on the other hand, to opening the eyes of investors and depositors promoting vigilance when they make decisions about investing their funds in banks.

APA, Harvard, Vancouver, ISO, and other styles

19

Zhang, Jie, and Ahmed Aboud. "Determinants of economic value added (EVA) in Chinese listed banks." Asian Review of Accounting 27, no. 4 (December 2, 2019): 595–613. http://dx.doi.org/10.1108/ara-11-2018-0216.

Full text

Abstract:

Purpose The purpose of this paper is to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The authors investigate the impact of six bank-specific factors and corporate governance factors on financial performance. Design/methodology/approach The authors use the ordinary least square regression to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The findings are generally robust to alternative proxies of performance. Findings The empirical results indicate that credit risk, operational efficiency and the degree of innovation are positively related to banks’ EVA while capital management has a negative impact on it. In addition, although board size and independent directors are not related to the bank’s EVA, from the perspective of the traditional performance evaluation indicators, executive compensation has a positive impact on the bank’s profitability. Research limitations/implications This paper has some limitations. First, due to the large number of adjustments to accounting items are required in the application of EVA when evaluating business performance, some items of the EVA model in this paper have been simplified, which may cause the bank’s EVA value to deviate slightly from the actual situation. Moreover, the sample includes only listed banks, so our results cannot generalize to non-listed banks, such as some small- and medium-sized commercial banks. Originality/value This paper contributes to the limited body of literature concerning the use and the determinants of EVA in emerging markets. The authors construct an EVA model which is suitable for China’s banks and reports comprehensive evidence on the drivers of EVA as a measurement tool.

APA, Harvard, Vancouver, ISO, and other styles

20

Corona, Carlos, Lin Nan, and Gaoqing Zhang. "Accounting Information Quality, Interbank Competition, and Bank Risk-Taking." Accounting Review 90, no. 3 (October 1, 2014): 967–85. http://dx.doi.org/10.2308/accr-50956.

Full text

Abstract:

ABSTRACT We study the interaction between interbank competition and accounting information quality and their effects on banks' risk-taking behavior. We identify an endogenous false-alarm cost that banks incur when forced to sell assets to meet capital requirements. We find that when the interbank competition is less intense, an improvement in the quality of accounting information encourages banks to take more risk. Keeping the banks' investments in loans constant, the provision of high-quality accounting information reduces the false-alarm cost of assets sales and improves the discriminating efficiency of the capital requirement policy. When considering the banks' endogenous investment decisions, however, this improvement in discriminating efficiency causes excessive risk-taking, because banks respond by competing more aggressively in the deposit market, and the increase in deposit costs motivates banks to take more risk. Our paper shows that improving information quality increases risk-taking with mild competition, but has no effect under fierce competition.

APA, Harvard, Vancouver, ISO, and other styles

21

Yim, Sang-Giun. "The Influence of IFRS Adoption on Banks’ Cost of Equity: Evidence from European Banks." Sustainability 12, no. 9 (April 26, 2020): 3535. http://dx.doi.org/10.3390/su12093535.

Full text

Abstract:

This study examines how mandatory adoption of International Financial Reporting Standards (IFRS) in European countries affects banks’ cost of equity. Supporters of IFRS argue that its adoption improves the quality of accounting information, which in turn decreases the cost of equity. However, banking regulators could intervene in the implementation of new accounting standards to protect the stability of the banking system, which would deteriorate banks’ information environment and thereby increase the cost of equity. Using a regression analysis of European listed bank data, I find that banks’ cost of equity increases after the adoption of IFRS in countries with strong bank supervisory offices. I also find that strong legal enforcement and additional disclosure requirements jointly reduce banks’ cost of equity, but pre-IFRS inconsistencies between local accounting standards and regulatory standards jointly increase banks’ cost of equity. This study contributes to the literature on market discipline in banking and has policy implications: The findings suggest that, when implementing new accounting standards, potential conflicts between financial reporting and banking regulations should be considered.

APA, Harvard, Vancouver, ISO, and other styles

22

Ivanov, Katerina, James Schulte, Weidong Tian, and Kevin Tseng. "An Equilibrium-Based Measure of Systemic Risk." Journal of Risk and Financial Management 14, no. 9 (September 2, 2021): 414. http://dx.doi.org/10.3390/jrfm14090414.

Full text

Abstract:

This paper develops and implements an equilibrium model of systemic risk. The model derives a systemic risk measure, loss beta, in characterizing all too-big-to-fail banks using a capital insurance equilibrium. By constructing each bank’s loss portfolio with a recent accounting approach, we perform a comprehensive empirical study of this loss beta measure and document all TBTF banks from 2002 to 2019. Our empirical findings suggest a significant number of too-big-to-fail banks in 2018–2019.

APA, Harvard, Vancouver, ISO, and other styles

23

Gelmini, Lorenzo. "Islamic banks: Sustainability, integrated reporting and religion." Corporate Governance and Sustainability Review 1, no. 2 (2017): 35–42. http://dx.doi.org/10.22495/cgsrv1i2p5.

Full text

Abstract:

Over the last few decades a growing awareness of the role of firms in society has emerged and, consequently, a call for a different approach towards accounting and accountability. Among various proposals, Integrated Reporting (IR) represent the more recent and ambitious one, even if some critical matters have to be dealt with by companies involved in its implementation. In effect, some Authors have already highlighted that it is necessary to introduce a cultural change in order to develop a new approach with reference to the measurement and communication (Songini et al., 2015). In this sense, in recent years critical and interdisciplinary research has significantly challenged the predominantly technical and a-political view of business and accounting. This has led to growing consensus that the most valuable insights are gained from studying practices in the organizational and broader social settings in which they operate, i.e. their cultural context. On the basis of the above, Islam does represent a strongly important field of study for the cultural context into which IR could develop. In effect, in Islamic thought, it is believed that Adam, the progenitor of the human race and Islamic prophet-was appointed Trusteeship (khalifa) or guardian of the planet Earth; in addition, a concept unique to man is amana or trust (Rizk, 2014). Allah offers amana to the heavens, to the earth, to the mountains - to the rest of creation - who all refused; only mankind was foolish enough to accept it. A trust entails one who entrusts and a trustee. Qur’an is embodied with the principles of moderation, balance and conservation, which are the core of sustainable development and provide a framework for discernment, without which there would arguably be no limits to waste, extravagance or greed both individual as well as corporate. Further exploration does suggest that the accountant, and hence accounting, is actually given a very key role. The person that is described as accountant or Muhtasib in Islam is the one responsible for making sure that business is not harming the community. Tawheed (unity) stimulates the desiderata of an explicit public commitment to reasonable and comprehensible accounting – full and relevant disclosure – in the public interest, as such an explicit commitment becomes a charge in relation to which those formally regulating accounting can be held accountable. At the same time, Islam encourages humankind to experience lazkiyah (self-correction) through active participation in life, since only behaving ethically in the materialistic life (duniya) Muslims prove their worth to Allah (Hassan, 2016). The paper is mostly theoretical, yet it offers fruitful practical insights since only a truthful assessment of the cultural pattern, as such as Islam, can lead to a conscious approach towards sustainability. This paper offers insights for future research on the broad field of social and environmental issues, as well as Integrated Reporting, since it suggests to take always in account – when addressing issues and potentialities of non financial reporting – the cultural pattern.

APA, Harvard, Vancouver, ISO, and other styles

24

Shukla, Ankur, Sivasankaran Narayanasamy, and Ramachandran Krishnakumar. "Impact of board size on the accounting returns and the asset quality of Indian banks." International Journal of Law and Management 62, no. 4 (May 8, 2020): 297–313. http://dx.doi.org/10.1108/ijlma-12-2018-0271.

Full text

Abstract:

Purpose The purpose of the paper is to explore the impact of board size on the accounting returns and asset quality of Indian banks. Design/methodology/approach This paper uses ordinary least squares regression, robust regression and panel data methods for estimation, based on data collected for a sample of 29 Indian banks that are listed on the National Stock Exchange (NSE) and form part of the NSE-500 index over a period of eight financial years 2009-2016. The data pertaining to the board size of the sample banks is collected from the annual reports of banks, whereas the data relating to return on assets (ROA) and ratio of the gross non-performing assets to total assets and control variables (bank age and bank size) is extracted from ACE Equity database. Findings This paper concludes that the size of the governing board has a positive impact on the accounting returns (measured through ROA) of the Indian banks. Further, board size is observed to be insignificant in determining the asset quality of Indian banks. Originality/value This paper contributes to the literature and practitioners in a number of ways. First, to the best of the authors’ knowledge, this is the first study on the impact of board size on the accounting returns and asset quality of Indian banks. The findings of the study contribute new theoretical insights to the body of knowledge on the influence of the size of the board, which may be useful for future researchers. Second, banks may enhance their financial performance by taking cognizance of the findings of this study. Finally, equity investors may make use of the findings of this article in deciding on whether to invest in a bank’s stock/lend to the bank based on board size of the bank.

APA, Harvard, Vancouver, ISO, and other styles

25

Pamungkas, Restu Putri, and Istutik Istutik. "PENGARUH EFEKTIVITAS PENGENDALIAN INTERN, ASIMETRI INFORMASI DAN KESESUAIAN KOMPENSASI TERHADAP KECENDERUNGAN KECURANGAN AKUNTANSI (Studi Empiris Kantor Pusat Bank Perkreditan Rakyat Di Kota dan Kabupaten Malang)." Adbis: Jurnal Administrasi dan Bisnis 13, no. 1 (October 14, 2019): 11. http://dx.doi.org/10.33795/j-adbis.v13i1.60.

Full text

Abstract:

The research aims to examine the effect of the effectiveness of internal control on trends in accounting fraud, examine the effect of information asymmetry on trends in accounting fraud, examine the effect of compensation appropriateness on accounting fraud trends. Qualitative research was carried out through in-depth surveys and interviews with the management of Islamic banks in Malang, customers, and academics about the need for an internal control system that is in accordance with the characteristics of Islamic banks. The development of an internal control system using the COSO (Committee of Sponsoring Organizations of The Treadway Commissions) framework was adopted and adapted to the characteristics of Islamic banks. The results of the study offer a model of an Islamic bank's internal control system through five components of the COSO, namely (1) the control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring that will benefit banks sharia to achieve strategic and operational goals, accuracy of financial reporting, and compliance with applicable policies and laws. Thus it will be able to help eliminate risks so that the performance of profit-sharing based financing can also be improved

APA, Harvard, Vancouver, ISO, and other styles

26

Broccardo, Eleonora, Maria Mazzuca, and Elmas Yaldiz. "The use and determinants of credit derivatives in Italian banks." Journal of Risk Finance 15, no. 4 (August 18, 2014): 417–36. http://dx.doi.org/10.1108/jrf-04-2014-0038.

Full text

Abstract:

Purpose – This paper aims to answer the following research questions: To what extent do banks use credit derivatives (CDs)? What are the differences between users and non-users? What are the main underlying motivations? Design/methodology/approach – The annual reports of 112 Italian banks are analysed during the 2005-2011 period. By estimating a probit regression model, two incentives for using CD are tested: managing credit risk, and increasing a bank’s income composition/diversification. Different sub-samples are considered. The motivations are further investigated to understand whether they vary before and after the crisis. Findings – A limited number of banks use CD and larger and listed banks are more likely to do so. The results do not support the hedging hypothesis. Signals pointing towards the financial distress hypothesis emerge. Less capitalised banks are more likely to use CD. For listed banks, the findings support the hypothesis that economies of scale exist. After the financial crisis, a number of determinants tend to gain significance, and a speculative driver emerges. Originality/value – Previous studies focus primarily on the USA, and single-country studies do not exist in the literature. Given the importance of risk management that the crisis has reinforced, investigating whether CD use has changed before and after the crisis is of interest. Given the incompleteness of the information on CDs, the paper contributes to increasing the available information on CDs by hand-collecting data from banks’ financial statements.

APA, Harvard, Vancouver, ISO, and other styles

27

Fieberg, Christian, Finn Marten Körner, Jörg Prokop, and Armin Varmaz. "Big is beautiful: the information content of bank rating changes." Journal of Risk Finance 16, no. 3 (May 18, 2015): 233–52. http://dx.doi.org/10.1108/jrf-10-2014-0156.

Full text

Abstract:

Purpose – The purpose of this paper is to study the information content of about 3,300 global bank rating changes before and after the Lehman bankruptcy in September 2008 to assess if differences in stock market reactions for small and big banks emerge. Design/methodology/approach – The analysis of the stock market reactions of rating changes (upgrades and downgrades) and bank’s size (small and big) is conducted by an event study approach. Findings – The authors find that while upgrades are not associated with significant abnormal bank stock returns, downgrades have a significantly negative effect. This result holds for both small and big banks, while negative abnormal returns are considerably stronger for the former. For small banks, the authors observe an increase in negative cumulative abnormal returns post-Lehman. The lack of a reaction to large banks’ rating downgrades in the narrow [−1,+1] event window indicates that their stock prices may, to some extent, be insulated from negative rating information even post-Lehman, which the authors attribute to an implicit “too big to fail” subsidy anticipated by equity investors. Originality/value – This paper provides insights to the differences in the information content of changes in small and big banks’ credit rating on stock returns that is unrelated to the well-known size effect. Compared to small banks, big banks seem to some extent be insulated from negative rating changes even post-Lehman – contributing to the on-going too big to fail debate.

APA, Harvard, Vancouver, ISO, and other styles

28

Mnif Sellami, Yosra, and Marwa Tahari. "Factors influencing compliance level with AAOIFI financial accounting standards by Islamic banks." Journal of Applied Accounting Research 18, no. 1 (February 13, 2017): 137–59. http://dx.doi.org/10.1108/jaar-01-2015-0005.

Full text

Abstract:

Purpose The purpose of this paper is to investigate the compliance level of Islamic banks with disclosure accounting standards in some Middle East and North African countries, and most importantly to analyse the factors associated with compliance. Design/methodology/approach This study uses a self-constructed checklist of 203 items to measure the compliance of 38 Islamic banks with disclosure accounting standards during the 2011-2013 period. A multivariate regression analysis is used to determine significant factors influencing the extent of this compliance. Findings The results show a wide variation in compliance levels among the disclosure accounting standards and reveal that compliance is positively related to the listing status, the existence of an audit committee, the bank’s age and the country of domicile. Research limitations/implications This study analyses the compliance level with only disclosure accounting standards. It remains to future research to examine compliance with all Accounting and Auditing Organization for Islamic Financial Institutions’ Financial Accounting Standards (AAOIFI FAS). Moreover, the explanatory power of the model remains modest. This connotes the existence of omitted variables that could be explored in future research. Practical implications The research contributes to the international financial accounting literature about the banking industry. The results are relevant for researchers, accounting professionals, stakeholders, standard-setters and regulatory bodies that are concerned with Islamic banks’ disclosures. Originality/value Although AAOIFI was established since 1991, very few empirical studies about compliance with the FAS have been undertaken. To the authors’ knowledge, there are no studies that investigated the determinants of compliance level with AAOIFI FAS. Then, this study concentrates on disclosure accounting standards (FAS 1 and FAS 5) with a high risk of non-compliance.

APA, Harvard, Vancouver, ISO, and other styles

29

Nanda Putri Ghassani Fildzah, Dini Rosdini,. "Comparison of Conservatism in Islamic And Conventional Banks in Indonesia And Malaysia." Jurnal Manajemen 23, no. 2 (June 8, 2019): 239. http://dx.doi.org/10.24912/jm.v23i2.475.

Full text

Abstract:

Malaysia and Indonesia are two of the ten countries with the largest total assets of Islamic financial markets in the world. The religiosity of a company can influences one of the qualities of accounting. The accounting quality of a company can be measured from accounting conservatism. This study aims to determine the comparison of conservatism between Islamic banks and conventional banks. The samples are Islamic banks and conventional banks in Indonesia and Malaysia from 2013 to 2017. The samples are 13 Islamic banks and 45 conventional banks so that the total sample is 290 observations. Data analysis using pooled least square regression. The result showed that conventional banks in Indonesia tend to be more conservative compared to sharia banks and sharia banks in Malaysia tend to be more conservative compared to conventional banks. Furthermore, changes in non-performing loans and changes in loan charge-offs have positive effect on conservatism.

APA, Harvard, Vancouver, ISO, and other styles

30

Ashraf, Ali, M. Kabir Hassan, Kyle J. Putnam, and Arja Turunen-Red. "PRUDENTIAL REGULATORY REGIMES, ACCOUNTING STANDARDS, AND EARNINGS MANAGEMENT IN THE BANKING INDUSTRY." Buletin Ekonomi Moneter dan Perbankan 21, no. 3 (February 28, 2019): 367–94. http://dx.doi.org/10.21098/bemp.v21i3.975.

Full text

Abstract:

We analyze if a change in accounting standard or a change in prudential regulationimpacts banks’ loan loss provision. We find that, in general, the banks using aprinciples-based accounting standard exhibit a lower level of earnings managementcompared to banks using a rules-based accounting standard. When a country movesfrom pro-cyclical macro-prudential regulations to a dynamic provisioning regime,banks are more likely to set aside a larger amount of loan loss provision for the purposeof income smoothing.

APA, Harvard, Vancouver, ISO, and other styles

31

Chiou, Jer-Shiou, Bor-Yi Huang, Pei-Shan Wu, and Chun-Ni Tsai. "THE IMPACTS OF DIVERSIFIED OPERATIONS ON LENDING OF FINANCIAL INSTITUTION." Journal of Business Economics and Management 13, no. 4 (September 17, 2012): 587–99. http://dx.doi.org/10.3846/16111699.2011.620158.

Full text

Abstract:

This study explores the impacts of bank's diversified operations on their loans, the threshold effect of bank's derivatives trading and the impacts on their financial behaviors are investigated. The results show that there are two separate regime effects for banks in large-sized and medium-sized, and three regime effects for banks in small to medium-sized. Derivatives trading not only make banks easier to diversify their credit risk exposure, but also alter their lending behaviors. As an example of large banks, when banks derivatives’ trading is more than US$61 billion, an increase in banks assets will associate with a corresponding increase in loans to SMEs. If trading in derivatives by the banks is less than the threshold value, the banks will make loans less available to SMEs when there is an increase in banks assets. In addition, when banks are less aggressive in derivatives trading, debt ratio, pre-tax earnings and the SME credit guarantee balance all have significantly positive associations with loans to SMEs.

APA, Harvard, Vancouver, ISO, and other styles

32

Hagendorff, Jens, Kevin Keasey, and Francesco Vallascas. "When Banks Grow Too Big for Their National Economies: Tail Risks, Risk Channels, and Government Guarantees." Journal of Financial and Quantitative Analysis 53, no. 5 (August 22, 2018): 2041–66. http://dx.doi.org/10.1017/s0022109018000327.

Full text

Abstract:

Banks are growing ever larger compared to their national economies. We show that increases in relative bank size (measured as a bank’s liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not entirely due to risk channels that disproportionately expose relatively large banks to systematic tail risks, sovereign risks, or banking crises. Instead, we detect a persistent component in the tail risk of relatively large banks that is bank-specific and connected to government guarantees. Furthermore, as banks grow in relative size, tail risks are shifted to debtholders without wealth gains for shareholders.

APA, Harvard, Vancouver, ISO, and other styles

33

Chockalingam, Arun, Shaunak Dabadghao, and Rene Soetekouw. "Strategic risk, banks, and Basel III: estimating economic capital requirements." Journal of Risk Finance 19, no. 3 (May 21, 2018): 225–46. http://dx.doi.org/10.1108/jrf-11-2016-0142.

Full text

Abstract:

Purpose Basel III regulations require banks to protect themselves against strategic risk. This paper aims to provide a comprehensive and measurable definition of this risk and proposes a framework to estimate economic capital requirements. Design/methodology/approach The paper studies the literature and solicits expert opinion in formulating a comprehensive and measurable definition of strategic risk. The paper postulates that the economic capital for a bank’s strategic risk should be estimated using the cost of equity as the profitability threshold, rather than zero and develops a simulation-based framework to estimate economic capital. Findings The framework closely matches the actual economic capital outlay for strategic risk from our case study of ABN AMRO. It is shown that a bank’s strategic growth plans can fall into one of two scenarios based on risk-return characteristics. In one scenario, the required economic capital outlay will increase, and decrease in the other. Practical implications This framework is generalizable and makes use of widely accepted and used practices in banks, making it readily implementable in practice. It does not introduce errors resulting from model selection, parameterizations or complex calculations. Social implications Society would be worse off in the absence of banking and lending services. Banks need to take risks to grow and stay competitive. The framework facilitates better strategic risk management, protecting banks from collapse and reducing the need for taxpayer-funded bailouts. Originality/value The paper provides a measurable and practitioner-verified definition of strategic risk and proposes a simple framework to estimate economic capital requirements, a crucial topic, given the threats and increased levels of strategic risk facing banks.

APA, Harvard, Vancouver, ISO, and other styles

34

Korpaniuk, Tatiana. "Accounting of non-performing long-term bank loans in Ukraine." Banks and Bank Systems 12, no. 4 (December 6, 2017): 121–30. http://dx.doi.org/10.21511/bbs.12(4-1).2017.01.

Full text

Abstract:

The research paper outlines general problems of ensuring the continuity of the reproductive process in the Ukrainian economy with the help of long-term bank lending, and the problem of improving the accounting of non-performing long-term bank loans in the country was urged. The importance of solving this problem is conditioned by the significance of this group of loans in the loan portfolios of Ukrainian banks in terms of the current crisis economic situation in Ukraine. The objective of the research paper is to analyze the current state and trends in the methodology and practice of accounting of non-performing long-term bank loans in Ukraine, as well as formulate and substantiate directions for improving this methodology and practice. In the process of fulfilling the tasks of this reserch paper, the significance of the objective accounting of non-performing long-term loans of banks was substantiated; the status and changes in the accounting system of non-performing loans of Ukrainian banks were analyzed; the importance of European experience in this area was urged, which has being consistently adopted; and the scheme of allowing for changes in a share of non-performing bank loans when determining loan price was suggested. The ways to improve the accounting system of non-performing long-term loans in Ukrainian banks were suggested.

APA, Harvard, Vancouver, ISO, and other styles

35

Swanson, Kara W. "Body Banks: A History of Milk Banks, Blood Banks, and Sperm Banks in the United States." Enterprise & Society 12, no. 4 (December 2011): 749–60. http://dx.doi.org/10.1017/s1467222700010661.

Full text

Abstract:

My dissertation traces the invention and development of a new form of banking, body banking. Today, the body bank as an institution that collects, stores, processes, and distributes a human body product is a taken-for-granted aspect of medicine in the United States. We donate to blood banks, we cherish sperm bank babies, and we contemplate many sorts of banks, including cord blood banks, gene banks, and egg banks. Such institutions have existed for the past century in the metaphorical shadow of financial banks, and like those better-studied banks have stirred considerable controversy. The driving question behind my dissertation is simply, why banks? How did we come to use “bank” to apply to bodies as well as to dollars? More intriguingly, what does this analogy show us and what is it hiding?

APA, Harvard, Vancouver, ISO, and other styles

36

Swanson, K. W. "Body Banks: A History of Milk Banks, Blood Banks, and Sperm Banks in the United States." Enterprise and Society 12, no. 4 (August 23, 2011): 749–60. http://dx.doi.org/10.1093/es/khr038.

Full text

APA, Harvard, Vancouver, ISO, and other styles

37

Ambilikumar, V. "Co-operative Banks Require Double Entry Accounting System." Journal of Commerce and Management Thought 5, no. 1 (2014): 3. http://dx.doi.org/10.5958/j.0976-478x.5.1.001.

Full text

APA, Harvard, Vancouver, ISO, and other styles

38

Sorin, Grigorescu. "Characteristics Of Application Of Accounting Principles To Banks." Annales Universitatis Apulensis Series Oeconomica 1, no. 8 (June 1, 2006): 66–74. http://dx.doi.org/10.29302/oeconomica.2006.8.1.13.

Full text

APA, Harvard, Vancouver, ISO, and other styles

39

Lee, Jin Hyo. "A Study On Accounting Of Mutual Savings Banks." Sogang Journal of Law and Business 7, no. 2 (August 31, 2017): 121–51. http://dx.doi.org/10.35505/sjlb.2017.08.7.2.121.

Full text

APA, Harvard, Vancouver, ISO, and other styles

40

Laeven, Luc, and Harry Huizinga. "Accounting Discretion of Banks During a Financial Crisis." IMF Working Papers 09, no. 207 (2009): 1. http://dx.doi.org/10.5089/9781451873542.001.

Full text

APA, Harvard, Vancouver, ISO, and other styles

41

Karim, Rifaat Ahmed Abdel. "International accounting harmonization, banking regulation, and Islamic banks." International Journal of Accounting 36, no. 2 (May 2001): 169–93. http://dx.doi.org/10.1016/s0020-7063(01)00093-0.

Full text

APA, Harvard, Vancouver, ISO, and other styles

42

Ryu, Sang Lyul, and Jayoun Won. "Loan securitisation and accounting measurement methods in banks." International Journal of Economic Policy in Emerging Economies 13, no. 4 (2020): 1. http://dx.doi.org/10.1504/ijepee.2020.10029978.

Full text

APA, Harvard, Vancouver, ISO, and other styles

43

Ryu, Sang Lyul, and Jayoun Won. "Loan securitisation and accounting measurement methods in banks." International Journal of Economic Policy in Emerging Economies 13, no. 4 (2020): 312. http://dx.doi.org/10.1504/ijepee.2020.109576.

Full text

APA, Harvard, Vancouver, ISO, and other styles

44

Hussain, Mostaque. "Management accounting performance measurement systems in Swedish banks." European Business Review 17, no. 6 (December 2005): 566–89. http://dx.doi.org/10.1108/09555340510630581.

Full text

APA, Harvard, Vancouver, ISO, and other styles

45

Hussain, Mostaque, and A. Gunasekaran. "Management accounting and performance measures in Japanese banks." Managing Service Quality: An International Journal 12, no. 4 (August 2002): 232–45. http://dx.doi.org/10.1108/09604520210434848.

Full text

APA, Harvard, Vancouver, ISO, and other styles

46

Li, Jing. "Accounting for banks, capital regulation and risk-taking." Journal of Banking & Finance 74 (January 2017): 102–21. http://dx.doi.org/10.1016/j.jbankfin.2016.09.003.

Full text

APA, Harvard, Vancouver, ISO, and other styles

47

Almutairi, Ali R., and Majdi A. Quttainah. "Corporate governance and accounting conservatism in Islamic banks." Thunderbird International Business Review 61, no. 5 (April 10, 2019): 745–64. http://dx.doi.org/10.1002/tie.22063.

Full text

APA, Harvard, Vancouver, ISO, and other styles

48

Absamatovich, Umarov Zafar. "Overdraft credit in commercial banks and its accounting." SAARJ Journal on Banking & Insurance Research 9, no. 6 (2020): 52–58. http://dx.doi.org/10.5958/2319-1422.2020.00039.9.

Full text

APA, Harvard, Vancouver, ISO, and other styles

49

Alqaraleh, Mithkal Hmoud, Nawaf Samah Mohammad Thuneibat, and Abdulnaser Ibrahim Nour. "The factors affecting the adherence of Islamic accounting standards AAOIFI in Jordan." Journal of Governance and Regulation 9, no. 4 (2020): 69–75. http://dx.doi.org/10.22495/jgrv9i4art6.

Full text

Abstract:

The aim of this paper is to knowledge the problems faced by Islamic banks in Jordan towards the adherence to AAOIFI accounting standards. And to study the problems faced with adherence to AAOIFI accounting standards, a meticulous market survey was conducted from banking (employees of the financial department) in Islamic banks in Jordan – their number 4 – banks. A structured questionnaire was designed and distributed in person among respondents – their number 80 – employees in the financial departments. We are found towards adherence to AAOIFI accounting standards. Internal and external problems are found to adherence Islamic banks to AAOIFI accounting standards. The sample is limited to Islamic banks in Jordan. This is necessitated by the lack of adaptation elsewhere. Also, there is little research in Jordan on adherence to AAOIFI accounting standards developed by this body. This paper, along with the previous study, helps to address this gap.

APA, Harvard, Vancouver, ISO, and other styles

50

Schwarz, Claudia, Polychronis Karakitsos, Niall Merriman, and Werner Studener. "Why Accounting Matters: A Central Bank Perspective." Accounting, Economics and Law - A Convivium 5, no. 1 (January 1, 2015): 1–42. http://dx.doi.org/10.1515/ael-2014-0023.

Full text

Abstract:

AbstractThis paper analyses how accounting frameworks can affect three important areas of responsibility of many central banks, namely monetary policy, financial stability and banking supervision. The identified effects of accounting rules and accounting information on the activities of a central bank are manifold. First, the effectiveness of monetary policy crucially hinges on the financial independence of a central bank, which can be evidenced, inter alia, by its financial strength. Using a new simulation of the financial results of the European Central Bank (ECB), this paper shows that the reported annual profit and financial buffers of a central bank can be significantly affected by accounting, profit distribution and loss coverage rules. Second, in respect of financial stability, the accounting frameworks applied by commercial banks can not only affect their behaviour, but also that of financial markets. Indeed, there is evidence that accounting frameworks amplified pro-cyclicality during the recent crisis, and thus posed risks to the stability of the financial system. This being so, the accounting frameworks of credit institutions have obvious implications for central banks’ analyses with regard to promoting financial stability. Finally, as regards banking supervision, regulatory reporting and key supervisory ratios are based on accounting data. Under the new regulatory framework for banks in the European Union (EU), bank supervisors are highly reliant on accounting data. This means that central banks, in their role as bank supervisors, need to understand the underlying accounting rules and should directly support the development and application of harmonised accounting frameworks.

APA, Harvard, Vancouver, ISO, and other styles

Journal articles on the topic 'Accounting in banks'

Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles