Journal articles on the topic 'Banks and banking Australia Deregulation'
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1
Holdren, Don P., and Wilton E. Heyliger. "The Performance of Minority Banks in a Deregulated Banking Environment." Review of Black Political Economy 22, no. 2 (December 1993): 89–107. http://dx.doi.org/10.1007/bf02689945.
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This study examined 58 performance ratios for minority banks in 1980 and 1988. Its purpose was to evaluate the impact of deregulation on high and low performance minority banks. The study found that deregulation had a positive impact on those banks in the high performance groups in 1980 and a negative affect on those banks in the low performance groups in 1980. The study also found minority banks, in general, needed to improve management efficiency. Management efficiency of low performance minority banks seemed to have deteriorated in the deregulation period. The authors suggest that low performance minority banks be given closer regulatory supervision and aid in developing efficient management in their organizations.
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Hoffmann, Mathias, and Iryna Stewen. "Holes in the Dike: The Global Savings Glut, U.S. House Prices, and the Long Shadow of Banking Deregulation." Journal of the European Economic Association 18, no. 4 (September 24, 2019): 2013–55. http://dx.doi.org/10.1093/jeea/jvz045.
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Abstract We show how capital inflows into and financial deregulation within the United States interacted in driving the recent boom and bust in U.S. housing prices. Interstate banking deregulation during the 1980s cast a long shadow: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to aggregate U.S. capital inflows during 1997–2012. Capital inflows relaxed the value-at-risk constraints of geographically diversified (“integrated”) U.S. banks more than those of local banks. Therefore, integrated banks absorbed a larger share of capital inflows and expanded mortgage lending more. This drove up housing prices.
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Keil, Jan, and Karsten Müller. "Bank Branching Deregulation and the Syndicated Loan Market." Journal of Financial and Quantitative Analysis 55, no. 4 (August 15, 2019): 1269–303. http://dx.doi.org/10.1017/s0022109019000607.
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How do changes in banking regulation affect the syndicated loan market? Because branch networks and loan syndication both enable banks to diversify geographical credit risk, we investigate the staggered implementation of the Riegle–Neal Interstate Branching and Banking Efficiency Act of 1994. Exploiting that the act only changed the legal framework for out-of-state commercial banks, we find that branching deregulation decreased syndicated loan issuance but spurred bilateral lending to corporations. Consistent with a supply-driven substitution effect, this shift is also reflected in interest rate spreads. Our results suggest that changes to banking regulation can substantially alter credit allocation across loan types.
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Guinnane, Timothy W. "Delegated Monitors, Large and Small: Germany's Banking System, 1800–1914." Journal of Economic Literature 40, no. 1 (February 1, 2002): 73–124. http://dx.doi.org/10.1257/0022051026985.
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Banks play a greater role in the German financial system than in those of the United States or Britain. Germany's large universal banks are admired by those who advocate bank deregulation in the United States. Others admire the universal banks for their supposed role in corporate governance and industrial finance. Many discussions distort the German banking system by overstressing one of several types of banks, and ignore the competition and cooperation between the famous universal banks and other banking groups. Tracing the historical development of the German banking system from the early nineteenth century places the large universal banks in context.
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Gulati, Rachita. "Trends of cost efficiency in response to financial deregulation." Benchmarking: An International Journal 22, no. 5 (July 6, 2015): 808–38. http://dx.doi.org/10.1108/bij-06-2013-0065.
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Purpose – The purpose of this paper is to examine the trends of cost efficiency (CE) of Indian banks in response to financial deregulation programme launched in early 1990s. More specifically, the findings of this paper offer empirical testing of the basic underlined hypothesis that the CE of banks will rise in the more liberal and competitive environment. Design/methodology/approach – The study employs input-oriented data envelopment analysis (DEA) models that incorporate the quasi-fixed inputs to compute the cost, technical, and allocative efficiency scores for individual banks. The unbalanced panel data spanning from the financial year 1992-1993 to 2007-2008 are used for obtaining efficiency measures. In addition, the panel data Tobit model has been applied to investigate the bank-specific factors explaining variations in the CE. Findings – The empirical findings pertaining to the trends of efficiency measures suggest that: first, deregulation programme has had a positive impact on the CE of Indian banks, and the observed increase in CE is entirely due to improvements in technical efficiency (TE); second, the ranking of ownership groups provides that public sector banks are more cost efficient along with the foreign than private banks; and third, there is a strong presence of global advantage hypothesis in the Indian banking industry. The results of post-DEA analysis reveal that size and exposure to off-balance sheet activities are the key determinants of CE. The results also support the existence of bad luck or bad management hypothesis in Indian banking industry. Practical implications – The practical implication of the research findings is that the financial deregulation programme seems to be successful in achieving the CE gains in the Indian banking industry. This explicitly signals that the cautious approach of banking reforms adopted by Indian policy makers has started bearing fruit in terms of the creation of an efficient banking system, which is immune to any sort of financial crisis, and resilient to both internal and external shocks. Originality/value – The present study offers new evidence on the time-series properties of cost, allocative, and TEs of Indian banks. The DEA models used in this study explicitly incorporate the equity as a quasi-fixed input, which accounts for “risk” in the bank efficiency measurement.
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Correa, Ricardo, and Gustavo A. Suárez. "Firm Volatility and Banks : Evidence from U.S. Banking Deregulation." Finance and Economics Discussion Series 2009, no. 46 (2009): 1–41. http://dx.doi.org/10.17016/feds.2009.46.
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LEE, BOON L., ANDREW C. WORTHINGTON, and WAI HO LEONG. "MALMQUIST INDICES OF PRE- AND POST-DEREGULATION PRODUCTIVITY, EFFICIENCY AND TECHNOLOGICAL CHANGE IN THE SINGAPOREAN BANKING SECTOR." Singapore Economic Review 55, no. 04 (December 2010): 599–618. http://dx.doi.org/10.1142/s0217590810003948.
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By the end of the 1990s, the Singaporean government had recognised the need to open up its banking sector so as to remain competitive in the global economy. The Monetary Authority of Singapore (MAS) thus began deregulation of the banking sector in 1999 to strengthen the competitiveness of local banks relative to their foreign competitors through mergers. This paper employs a nonparametric Malmquist productivity index to provide measure of productivity, technological change and efficiency gains over the period 1995–2005. The findings reveal some total factor productivity growth associated with deregulation and scale efficiency improvement largely from mergers amongst the local banks.
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Baglioni, Angelo. "Liberalizzazione, concentrazione e diversificazione del sistema bancario italiano." ECONOMIA E POLITICA INDUSTRIALE, no. 3 (September 2009): 7–19. http://dx.doi.org/10.3280/poli2009-003002.
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- Starting from the early nineties, the Italian banking system has undergone a deep process of deregulation, consolidation and diversification. The deregulation process has enabled Italian banks to enter new - geographical and product - markets. The single European market has introduced a competitive challenge from abroad. The concentration process may be explained on several grounds. Smaller banks have aimed at reaching a more efficient scale of production. Deals involving banks located in Northern and Southern Italy had a prudential rationale, given the weakness of Southern banks. Large banks have presumably pursued a defensive strategy, due to the threat of take-overs from abroad. An important role has been played by the moral suasion exerted by the Bank of Italy. Deregulation and consolidation have come along together with an increase of the competitive pressure, as shown by the decline of interest rate margins. Banks have reacted by diversifying their business, in order to expand their sources of revenue and to create switching costs for their customers (by selling bundles of services). Keywords: banks, deregulation, consolidation, competition Parole chiave: banche, liberalizzazione, concentrazione, concorrenza Jel Classification: G21 - L89
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Lee, Seok Weon. "Regulation, corporate control and bank risk taking." Corporate Ownership and Control 1, no. 4 (2004): 108–17. http://dx.doi.org/10.22495/cocv1i4p9.
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In this study, we examine the relation between ownership structure and risk-taking behavior of banks by analyzing data for three different regulatory and economic regimes of the Korean banking industry. We find that stockholder-controlled banks exhibit higher but unprofitable risk-taking than managerially-controlled banks during the period of deregulation 1994-1995, and that this relation is more transparent during the period of deregulation and decline of the industry 1996-1997. However, higher risk-taking incentives of stockholder-controlled banks become weaker during the period of tightened regulation and structural reform 1999-2000. Furthermore, the profitability of stockholder-controlled banks given a unit increase in the bank’s risk appears to be improved in this period relative to the periods of deregulation. Considering that the economic conditions of the Korean banking industry in this period is under recovery stage (not prosperity), these results may suggest that stockholder controlled banks try to change their risk-taking behavior toward a more deliberate and profitable one, and therefore, may provide somewhat convincing evidence for the corporate control hypothesis stating that insider ownership during periods of regulatory stringency would give banks the incentives to pursue modest, deliberate and profitable risk-taking strategies. In the test for the partitioned sample, we find stronger evidences that are an integral part of this paper.
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Kuzucu, Serpil. "Concentration and Competition in Turkish Banking Industry: The Evidence from 2000 to 2012." International Journal of Finance & Banking Studies (2147-4486) 4, no. 3 (January 21, 2016): 1. http://dx.doi.org/10.20525/.v4i3.220.
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<p><em>Banking industry worldwide has been transformed due to globalization, financial liberalization, technological developments, government policies, deregulation of financial services, financial crises and increase in mergers and acquisitions since 1980. With these changes, there is a trend towards decrease in the number of banks and increase in banking concentration. Increase in banking concentration might affect competition conditions in banking industry. The decrease in the number of banks and the increase in banking concentration dominate the Turkish banking industry after the banking crises in 2000 and 2001. This paper examines the relationship between concentration and competition in Turkish banking industry. I measure the size of banking concentration by concentration ratios and Herfindahl-Hirschman index with the data of commercial deposit banks in Turkey from 2000 to 2012. Competition degree is measured by using Panzar Rosse model. The results of the study suggest that there is no permanent relation between banking concentration and competition in Turkish banks.</em></p>
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ABOGAN, Opeyemi Philips, Egbewole OLAJIDE, and Olusola OLOBA. "The Impact of Deregulation of the Economy on Nigerian Commercial Banks; A Case Study of Some Selected Commercial Banks in Ilesa, Osun State." Australian Journal of Business and Management Research 03, no. 10 (October 1, 2013): 19–27. http://dx.doi.org/10.52283/nswrca.ajbmr.20130310a02.
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The study looks at the impact of deregulation of the economy on Nigerian commercial banks; A case study of some selected commercial banks in Ilesa, Osun State. The economy policies pursued prior to 1985 made the Nigeria economy price distortions created by a highly over-valued currency and inappropriate pricing of agricultural and other local products. The control measure introduced prior to deregulation of the economy were unable to improve the economy positively. Instead, that period was characterized by short-supply of industrial inputs, plant closure, large retrenchment of workers, and shortage of goods and price inflation coupled with unfavourable balance of payment. Data were gathered from some selected commercial banks in Ilesa, Osun State Nigeria through issuing of questionnaires and from some secondary sources such as CBN statistical bulletin, Publications and other relevant materials. The major deregulation policies were deregulation of interest rates structure, introduction of second tier foreign exchange market. Since the Federal Government is contemplating deregulation as the only paramount solution to distorted economic structure. The study therefore recommends that banking industry [commercial banks] needs to reposition itself to take full advantage of the gains which might arise from such deregulation. Commercial banks should equally anticipate and sensitize themselves with the challenges of a deregulated economy.
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Kumar, T. S., and K. Kalairaja. "A Study on Customer Relationship Management Practices in Indian Banks With Special Reference to Chennai City." Shanlax International Journal of Management 9, no. 1 (July 1, 2021): 66–70. http://dx.doi.org/10.34293/management.v9i1.3913.
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The banking landscape has undergone a paradigm shift from welfare oriented banking to profit oriented banking over a period of three decades. The deregulation has completely transformed a very complexion of commercial banks in the early nineties. Prior to deregulation syndrome, the customers were given short shrift in the social sector banking era. The customers were made to run from pillar to post to get an ordinary personal loan. Only those who can afford to offer security were made eligible for big ticket loans. The borrowers had to wait endlessly for various types of consumer loans. The customers in the current era of liberalized environment are enjoying the privilege of choosing their banks in terms of various considerations. The main objectives of the study is to examine the current customer relation strategies adopted in Indian Banks, to identify the deficiencies in the existing customer satisfaction variables which lead to Bridge the customers and the bank, to study the difference in perception of the customers of the bank toward various services provided by bank and to analysis the satisfaction level of customer services provided by the bank. The survey reveals that assenters are satisfied in most of the aspects and they want to continue with their respective banks. So now if the banks use proper strategies to overcome the shortcomings faced by customers, the banks can easily build a strong relationship and that will allow the bank to earn profit in the competitive environment.
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Lee, Seok Weon. "Changing Incentives and Opportunities for Risk-Taking in Recent U.S. Banking Industry." International Studies Review 6, no. 1 (September 28, 2005): 69–83. http://dx.doi.org/10.1163/2667078x-00601004.
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We examine how the rd,~ionship between bank ownership structure and risk-raking may be differently affected by the different regulatory regimes in the U.S. banking industry. We find that higher insider-ownership banks had greater risk-raking incentives than lower insider-ownership banks between 1987-1990 (a period of relative deregulation and decline of the U.S. banking industry), when we represent risk-raking by systematic risk. However, chis greater systematic risk-caking is unprofitable, indicating chat banks pursued perverse risky strategies in the lace l 980s as suggested by the moral-hazard hypothesis in banking literature. Bue we find char greater systematic risk-caking incentives of higher insider-ownership banks than lower insider-ownership banks disappeared, and that the association between risk-raking and profitability improved over the period of tightened regulation (1991-1995). These results may offer some supp:ming evidence for the effectiveness of regulatory reforms in the U.S. banking industry beginning around 1991. In testing the partitioned sample between lower insider-ownership banks vs. higher ones, we find that the positive relationship between insider ownership and risk-raking, and the negative relationship between the risk-taking and profitability, is significantly more transparent JOY the set of hankJ with lower insider mi11ership over the period 1987-1990. Thus, at r'flJ' lrn11 /weir of stock ownership, banks greatly increase risk, but ultimately unprofirahle risks, as the level of imider ownership rises over the period of dc:regulation and decline of the banking industry. This result is consistent with the corporate-control hypothesis. Over the periOO 1 lJ) 1-1995, we also find char at high levels of stock ownership, banks sc:c:med to engage in profirable risk-taking as the level of insider ownership rose, as predicted by the corporatc:-control hypothesis. Overall, in terms of only addressing the owner/manager agency problem, these results strongly suggest that in years of deregulation, the owner/manager agency problem of banks can be easily addressed by changing insider holdint,rs or ownership structure ro accommodate increased risk. But this policy suggestion should be taken with caution, since banks seem to take on more than enough risk in years of deregulation, which may ultimately increase the probability of bank failure. TI1is might suggest that the increase in insider holdinb:rs to address the ov,rner/manager agency problem should be associated with closer monitoring of the banks' risk-taking behavior. This policy suggestion shoulJ he encouraged more strongly, especially to banks with very low levels of stock ownership.
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M. S. Nilam. "Bank Selection Criteria and Performance of Public and Private Banks of Sri Lanka: A Comparative Study." CenRaPS Journal of Social Sciences 2, no. 2 (July 15, 2020): 197–215. http://dx.doi.org/10.46291/cenraps.v2i2.27.
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Financial deregulation and technological advancement have led the sri lankan banking industry to highly competitive environment. In sri lanka, the competition is not only among the local banks, but also from foreign banks. To stay competitive and strong, a bank’s customer retention is crucial. In this context banking institutions would like to know how the customers select their bank and how they perceive the performance of banks in such competitive environment. The researcher selected sample of 468 banking customers from public and private banks of sri lanka. Responses were analyzed and presented through descriptive, correlation and regression analysis. The findings showed that the security and service quality were the two most crucial factors when selecting a bank in sri lanka. Significant gender and education level factors in bank selection were observed. Study concludes that sri lankan private banks perform better on those factors than the public banks in sri lanka.
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Yoo, Tae Hwan. "Indian Banking Sector Reforms: Review and Prospects." International Area Review 8, no. 2 (June 2005): 167–89. http://dx.doi.org/10.1177/223386590500800209.
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Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.
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BATTILOSSI, STEFANO. "Financial innovation and the golden ages of international banking: 1890–1931 and 1958–81." Financial History Review 7, no. 2 (October 2000): 141–75. http://dx.doi.org/10.1017/s0968565000000093.
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Stefano Battilossi, Financial innovation and the golden ages of international banking: 1890–1931 and 1958–81Throughout the twentieth century, the internationalisation of banking was both a factor for, and an ensuing aspect of, rising globalisation. During the period 1890–1931, commercial banks of industrialised countries promoted organisational and process innovations that successfully challenged the dominance of merchant banks in international financial intermediation. International banking re-emerged from interwar nationalistic retrenchment during the late 1950s, when banks exploited regulatory asymmetries to foster the emergence of Eurocurrency markets. Eurobanks provided not only global liquidity redistribution but also portfolio transformation services to corporate and sovereign customers. Financial innovations related to Eurobanking mark a secular discontinuity as they proved to be vehicles of a banking revolution, based on competition, deregulation and wholesale-market funding.
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Anasweh, Mohammed Salameh. "The market concentration and banking industry performance." Corporate Ownership and Control 13, no. 1 (2015): 1257–64. http://dx.doi.org/10.22495/cocv13i1c10p11.
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This study examines the structure-profit relationship in the Qatari banking industry. The study sample consists of all the local banks operating in the market (13 banks) listed in Qatar Stock Exchange (QSE) over the 2009-2014 period. The hypotheses related to the market power structure which includes the traditional Structure-Conduct-Performance Hypothesis (SCP), and the traditional Efficiency Hypothesis (EH). The empirical results generally support the (SCP) Hypothesis in Qatari banking industry. Thus, the main implication of these results for the policymakers, of Qatari banking sector, is to expand the ongoing deregulation efforts with the aim of reducing the industry concentration and enhancing the market competitiveness.
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Sylla, Mamadou. "How to Save the World Management of the Banking System?" Applied Economics and Finance 7, no. 5 (July 22, 2020): 1. http://dx.doi.org/10.11114/aef.v7i5.4852.
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The unprecedented subprime crisis, the deregulation of the market, bank credit and payment mechanisms have facilitated the spread of the risk to the whole of economy. This study examines the issue of the processes set up to save the management of the global banking system. To achieve our goal, we conducted a survey of the various techniques used by banks to prevent global financial crises. At the end of our study, we found that the banks while opting for different policies play the same role and are increasingly hard to avoid risk.
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Prasetiyo, Luhur. "Perkembangan Bank Syariah PAsca UU 21 Tahun 2008." Al-Tahrir: Jurnal Pemikiran Islam 12, no. 1 (May 1, 2012): 43. http://dx.doi.org/10.21154/al-tahrir.v12i1.46.
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<em>Islamic banking system still grows continuously over time in various countries, including Indonesia. Although it was a bit late, if it was compared to another, Islamic banking system began to develop in Indonesia in the early 1990’s. At that time, Islamic banking, however, was still running with its all characteristics based on the rule without adequate law. Islamic banking began to be recognized legally as the legalization of UU Perbankan 1992, and it was followed by its deregulation in 1998, and Islamic banking in Indonesia finally got its full legality after legalization of UU Perbankan Syariah in 2008. UU Perbankan Syariah as a new law certainly has significance for the development of Islamic banking in Indonesia. Based on the BI statistics, Islamic banks, especially Bank Umum Syariah after legalization of UU Perbankan Syariah, has been growing significantly, among in the number of banks, total assets, and total financing. Unfortunately, the growth of PLS (profit and loss sharing) doesn’t occupy a significant position in total financing of Islamic banks, whereas PLS is core system in Islamic banking.</em>
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Kacperska, Elżbieta, and Jakub Kraciuk. "Procesy koncentracji w polskim sektorze bankowym." Zeszyty Naukowe SGGW - Ekonomika i Organizacja Gospodarki Żywnościowej, no. 54 (November 25, 2004): 69–87. http://dx.doi.org/10.22630/eiogz.2004.54.28.
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The financial sector presents the strongest tendency towards capital concentration, what is the effect of its deregulation, liberalization and strong competitiveness. Fusions and foreign investors, who are taking banks over, are accomplishing this concentration. From the beginning of 1993 until the first quarter of 2004, the number of active commercial banks decreased from 87 to 59 and 27 fusions and assumptions were noticed. At the beginning of 2004 foreign investors controlled 46 commercial banks out of 59 operating in Poland. The value of their investments exceeded 7 .2 billions PLN and they owned 76.3% of equity and supplementary funds and 67.4% of assets. Owing to these investments, the banking sector development has started and the investors subsidised existing banks, improved infrastructure and made many innovations. The large foreign banks, which were set up as a result of concentration, made banking system more effective and facilitated development of national economy. On the other hand, the superior contribution of large foreign banks obstructs national financial policy and makes the financial sector sensitive to prosperity fluctuations and a crisis of the world banking system.
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Lee, Gin-Yuan, Po-Young Chu, and YU Chao. "Service Quality, Relationship Quality, and Customer Loyalty in Taiwanese Internet Banks." Social Behavior and Personality: an international journal 39, no. 8 (September 1, 2011): 1127–39. http://dx.doi.org/10.2224/sbp.2011.39.8.1127.
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While deregulation of financial institutions has increased competition in the Taiwanese banking industry, the advent of e-commerce has provided business opportunities for consumer financing operations. Network banking helps banks to develop relationship marketing by delegating tasks to customers, thus improving customer loyalty. The relationships between service quality, relationship quality, and customer loyalty were investigated in this study. It was found that crisis handling and relationships are negatively, and relationship quality and customer loyalty, and service quality and customer loyalty positively, correlated. Customer loyalty in Taiwanese Internet banks can be increased by improving service quality and relationship quality.
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Booth, Sue, and Jillian Whelan. "Hungry for change: the food banking industry in Australia." British Food Journal 116, no. 9 (August 26, 2014): 1392–404. http://dx.doi.org/10.1108/bfj-01-2014-0037.
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Purpose – Over the last 20 years, food banks in Australia have expanded nationwide and are a well-organised “industry” operating as a third tier of the emergency food relief system. The purpose of this paper is to overview the expansion and operation of food banks as an additional self-perpetuating “tier” in the response to hunger. Design/methodology/approach – This paper draws on secondary data sourced from the internet; as well as information provided by Foodbank Australia and Food Bank South Australia (known as Food Bank SA) to outline the history, development and operation of food banks. Food banking is then critically analysed by examining the nature and framing of the social problems and policies that food banking seeks to address. This critique challenges the dominant intellectual paradigm that focuses on solving problems; rather it questions how problem representation may imply certain understandings. Findings – The issue of food banks is framed as one of food re-distribution and feeding hungry people; however, the paper argue that “the problem” underpinning the food bank industry is one of maintaining food system efficiency. Food banks continue as a neo-liberal mechanism to deflect query, debate and structural action on food poverty and hunger. Consequently their existence does little to ameliorate the problem of food poverty. Practical implications – New approaches and partnerships with stakeholders remain key challenges for food banks to work more effectively to address food poverty. Social implications – While the food bank industry remains the dominant solution to food poverty in Australia, debate will be deflected from the underlying structural causes of hunger. Originality/value – This paper contributes to the limited academic literature and minimal critique of the food bank industry in Australia. It proposes that the rapid expansion of food banks is a salient marker of government and policy failure to address food poverty.
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Venkataramany, Sivakumar, and Balbir B. Bhasin. "The Changing Landscape Of The Indian Banking Industry: An Empirical Study." International Business & Economics Research Journal (IBER) 11, no. 4 (March 21, 2012): 421. http://dx.doi.org/10.19030/iber.v11i4.6878.
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While global financial deregulation has led to liberalization of financial services and thus to modernization of commercial banking, industrialized economies are facing a financial meltdown. The health of the major global banking industry is under severe stress, but India continues to be strong. Despite cost prohibitive efforts in the introduction of a range of new products and services, banks in India are striving to emerge from an era of development banking into consumer-oriented supermarkets. This paper studies the Indian banking industry with regard to its readiness to move on to the next generation.
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Hrazdil, Karel, Jeong-Bon Kim, Lijing Tong, and Min Zhang. "How Does Market Competition Affect Shareholder Voting? Evidence from Branching Deregulation in the U.S. Banking Market." Journal of Risk and Financial Management 15, no. 9 (August 30, 2022): 387. http://dx.doi.org/10.3390/jrfm15090387.
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Exploiting interstate branching deregulations during 1994–2005 as exogenous shocks to banking market competition, we examine the impact of increased market competition on shareholder voting in the U.S. banking industry. Voting is one of the primary mechanisms through which shareholders participate in corporate governance and “voice” their opinions to company management, yet little is known about how external market environments shape shareholder voting behavior. Using a difference-in-differences design, and a sample of 596 banks (17,783 bank-year proposals), we are the first to provide large-sample, systematic evidence that the intensification of market competition leads to an increase in rates of disapproval for management proposals. We further document that the relation between the two is more pronounced among states with higher degrees of deregulation and weaker levels of pre-deregulation competition. Overall, our findings are consistent with the notion that increased competition among U.S. banks induces more shareholders to vote against management proposals.
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Krisna, Ivo Nila, Rida Rahim, and Mohamad Fany Alfarisi. "COMPETITION AND PROFITABILITY: IMPACT ON STABILITY IN INDONESIAN BANKING." JBTI : Jurnal Bisnis : Teori dan Implementasi 13, no. 1 (April 13, 2022): 51–61. http://dx.doi.org/10.18196/jbti.v13i1.14309.
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Currently the banking industry has undergone major changes in recent years due to regulatory deregulation. Seeing this, in implementing it, banks must be managed more carefully, one of which is by maintaining it. Banking instability occurs because banks face too many risks. The purpose of this study is to examine how the influence of competition and profitability on banks in the Indonesian banking industry. The population used is commercial banks listed on the Indonesia Stock Exchange in 2015-2019. A series of indicators from internal and external banks are also used in this study to support the research results, which consist of bank size, concentration, inflation, and GDP. That is, banking is measured using three risks, credit risk with NPL proxy, liquidity risk with LDR proxy, and insolvency risk with Z-score proxy. Using panel data analysis, the following results were found in the 2015-2019 research period, competition had a positive and insignificant effect on credit risk, competition had a negative and insignificant effect on liquidity risk and insolvency risk. Profitability has a negative and significant effect on credit risk and insolvency risk, and profitability has a positive and insignificant effect on liquidity risk.
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Khan, Mohsin S. "New Issues in Bank Regulation (The Quaid-i-Azam Memorial Lecture)." Pakistan Development Review 41, no. 4I (December 1, 2002): 333–56. http://dx.doi.org/10.30541/v41i4ipp.333-356.
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Deregulation, technology, and financial innovation are transforming banking. Indeed, banking is no longer the business it was even a few decades ago. The way banking services are provided has changed dramatically, and in many countries they are even offered by institutions that are quite different from traditional banks. As the old institutional demarcations become increasingly irrelevant, increased competition from other intermediaries has led to a decline in traditional banking in which banks took deposits and made loans that stayed on their books to maturity. Banks thus have been moving rapidly into new areas of business. In this evolving financial environment, the international banking community and the Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) are currently wrestling with pinning down an appropriate regulatory framework. The regulatory response to these changes has been a move away from the increasingly ineffective command-and-control regulations to greater reliance on assessing the internal risk-management systems, the supervision of banks, and more effective market discipline. In the language of the New Basel Accord, this represents a shift in emphasis away from capital-adequacy rules toward supervision and market discipline. This paper provides an overview of the profound and rapid changes brought about by technology and deregulation, and discusses the hurdles that will have to be negotiated for putting in place a suitable regulatory framework. On the one hand, inadequate resolution of these challenges will create the wrong incentives and lead to banking fragility. On the other hand, overregulation carries the danger that it will retard the development of national financial systems, hinder the best use of available domestic savings, prevent countries from accessing international capital, and ultimately lead to slower growth. Developed financial systems are being challenged by the shift in regulatory focus, and the definition and implementation of appropriate regulatory standards is encountering substantial difficulties. Finding the right balance between regulation, supervision, and reliance on market discipline is likely to be even more difficult in developing and transition countries.
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LaDue, Eddy L., and Kenneth C. Carraro. "The Effect of Interstate Banking on Farm Lender Market Shares in New York State." Northeastern Journal of Agricultural and Resource Economics 15, no. 1 (April 1986): 61–65. http://dx.doi.org/10.1017/s0899367x00001343.
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Commercial bank loans to New York farmers are significantly overestimated in the reported USDA statistics due to out-of-state lending and reporting of some agribusiness loans as agricultural loans by New York State banks. Correcting for this distortion lowers the 1978–84 average New York agricultural credit market share held by banks from 36 to 24 percent. As deregulation allows more interstate banking activity, the overestimate of agricultural loan volume in states with money center banks and the corresponding underestimate of loan levels and market shares in nonmoney center states could cause increased distortion of state level farm debt statistics.
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Mulyaningsih, Tri, Anne Daly, and Riyana Miranti. "NEXUS OF COMPETITION AND STABILITY: CASE OF BANKING IN INDONESIA." Buletin Ekonomi Moneter dan Perbankan 18, no. 3 (March 31, 2016): 333–50. http://dx.doi.org/10.21098/bemp.v18i3.555.
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This paper analyzes the relationship between banking competition and banking stability in Indonesia, where the bank lending is the major source of funding on this country with a series of structural changes including deregulation, economic crisis, and consolidation. We apply generalized method of moment approach on individual bank data, and the result shows that competitive banking will increase the economic stability. Under a competitive industry, banks must improve their efficiency, increase their loans disbursement, diversify their business, boost their assets and enhance their capitalization. This paper emphasize that the efficiency is a critical to reduce risk, both for large and small banks. Furthermore, regardless their size, an adequate capital is an important factor for the bank to cope with shocks in the market
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Rasool, Syed Aziz, and Muhammad Ali Khan. "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan." Global Economics Review VII, no. II (June 30, 2022): 112–23. http://dx.doi.org/10.31703/ger.2022(vii-ii).10.
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This paper investigates the response of banks towards their performance in terms of their internal and external risk appetite. The statistics of Government Banks, Commercial banks, Islamic banks, and Islamic-Commercial Banks in Pakistan from 2010-2020 are measured. This study measures the risk-taking of Banks in Pakistan. There are many factors to be considered for the profitability of any business, some are internal factors, and some are external. This paper contributes to the ongoing discussion on the effects of deregulation and liberalization on the performance of the banking sector by examining the relationship between bank performance and efficiency indicators. Meanwhile, the paper makes several attempts to add to the existing literature. I will betaking 4 independent "Inflation, Loan Loss Provision (LLP), Gross Domestic Product (GDP) and Lending rates of interest (LIR)" and 1dependent variable, "Return on Average Equity", for this study. Examining these specific factors in greater depth can aid in comprehending their impact on banking institution profitability.
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Elfeituri, Hatem. "Examining banking productivity drivers in MENA banks after financial liberalisation in 1990s." Journal of Governance and Regulation 8, no. 1 (2019): 59–74. http://dx.doi.org/10.22495/jgr_v8_i1_p5.
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The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.
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Vunjak, Nenad, Miloš Dragosavac, Jelena Vitomir, and Petra Stojanović. "Central and South – Eastern Europe Banking Sectors in the Sustainable Development Function." ECONOMICS 8, no. 1 (June 1, 2020): 51–60. http://dx.doi.org/10.2478/eoik-2020-0009.
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AbstractChanges in banking sectors with the onset of the global financial crisis were related to: globalization, sector deregulation, technological change and financial innovation. Structural changes within banking services (at the end of the 20th century) relate to: the consolidation of banks, the merging of banking and non-banking financial institutions and their competition with one another. Significant place in the part of sustainable development belongs to bank performance, vision and mission of banks. The corporate vision of banks should be the “framework” for the future development of a bank. The corporate mission should be a “roadmap” to the realization of the bank’s vision and an expression of the business philosophy of the bank in question.It is of particular importance for the banking sectors of the CEE countries to define: the vision, the mission, the situational analysis and the planned long-term goals of the bank. With the advent of the global financial crisis, the financial activity of banks in the Central and Southeastern European region decreased, as the number of attractive fusion and acquisition banks in the region concerned was reduced.The aim of the research is to determine the importance of the vision, mission and clearly set goals in banks, where the analysis of banking sectors in 13 countries over a period of 11 years was carried out. The analysis of GDP and its growth in the period from 2008 to 2018 indicates a dynamic growth in the countries of Central Europe and some countries of Southeast Europe. The analysis of the assets of the banking sector and its share in GDP indicates the dominant participation of the countries of Central and Southeastern Europe that are members of the European Union relative to the candidate countries for EU member states. Analysis of the banking sector of the influx countries shows that more than 70% of the banking market in Southeast European countries is influenced by foreign highly developed banking groups. Sustainable development can only be achieved through the active joint action of the banking sectors of the Central and Southeast European countries.
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Tewari, Ishani. "The Distributive Impacts of Financial Development: Evidence from Mortgage Markets during US Bank Branch Deregulation." American Economic Journal: Applied Economics 6, no. 4 (October 1, 2014): 175–96. http://dx.doi.org/10.1257/app.6.4.175.
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Well-functioning credit markets play a key role in boosting overall economic growth, but their impact on distributional outcomes is much less clear. I use a quasi-experimental setting provided by branch banking deregulation, an important episode of US financial development, to study the distributive impacts of finance. Following removal of geographic restrictions on banks in the 1980s and early 1990s, mortgage access increased for lower-middle income groups, young, and also black households. These effects were driven by commercial banks, the only financial institutions subject to the policy. Banks' new screening technologies may have been responsible for this expansion of credit. (JEL D14, D31, G12, G28)
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Sadaula, Subal, and Janga Bahadur Hamal. "Ownership Structure, Deregulation and Bank Risk in Nepalese Commercial Banks." Journal of Bhuwanishankar 1, no. 1 (December 12, 2022): 23–35. http://dx.doi.org/10.3126/jobs.v1i1.49492.
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This study aims to examine the relationship between ownership structure, deregulation, and bank risk in Nepalese commercial banks. In the study, the non-performing loan has been considered as a response variable and ownership structure, bank size, bank age, and bank regulation have been taken as independent variables. The study is based on the secondary data of 20 commercial banks with 140 observations for the period from 2012 to 2018, employing descriptive and inferential statistical tools for the analysis. The correlation analysis reveals the significant and positive relationship of age with risk, which indicates that the bank's risk increases as the bank gets older. The study also signifies that the non-performing loans can be decreased with the implementation of capital regulation imposed by the regulatory body. The regression analysis depicts the negative and significant impact of bank size on bank risk when regressed together with the bank age. The mean value of non-performing loan for foreign-owned banks and private-owned banks is lower in comparison to that of government-owned banks. Similarly, the mean value of the non-performing loan for the deregulated period is higher in comparison to that of banks during the regulated period. The results provide interesting insights into the ownership structure and bank regulation in connection with bank risk. Hence this paper attempted to fill the gap in the existing literature in the context of Nepal. The study also elucidates that the banking business is not free from risk, and hence it has to consider a substantial number of factors while managing the risk.
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Tarullo, Daniel K. "Financial Regulation: Still Unsettled a Decade After the Crisis." Journal of Economic Perspectives 33, no. 1 (February 1, 2019): 61–80. http://dx.doi.org/10.1257/jep.33.1.61.
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A decade after the darkest moments of the financial crisis, both the US financial system and the legal framework for its regulation are still in flux. The post-crisis regulatory framework has made systemically important banks much more resilient. They are substantially better capitalized and less dependent on runnable short-term funding. But the current regulatory framework does not deal effectively with threats to financial stability outside the perimeter of regulated banking organizations, notably from forms of shadow banking. Moreover, with the political tide having for the moment turned decisively toward deregulation, there is some question whether the resiliency improvements of the largest banks will be preserved. This article assesses the accomplishments, unfinished business, and outstanding issues in the post-crisis approach to prudential regulation.
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Dhanda, Upasana, and Monika Sehrawat. "ISLAMIC BANKING IN INDIA: AN ALTERNATIVE BANKING SYSTEM." International Journal of Research -GRANTHAALAYAH 3, no. 12 (December 31, 2015): 171–80. http://dx.doi.org/10.29121/granthaalayah.v3.i12.2015.2902.
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The Banking system in India and all over the world is based on the interest system. Interest bearing money is almost like the law of nature where money generates money. However, an alternative banking system called Islamic banking which prohibits charging of interest and is based on profit/loss sharing system became popular in many countries. Global Islamic banking assets attained compounded annual growth rate (CAGR) of around 17% from 2009 to 2013 according to the World Islamic Banking Competitiveness Report 2014-2015.
The Indian Banking system has undergone many changes in the recent past with deregulation of banking system paving way for new banks in India. However, Islamic banking which has emerged as a global phenomenon lately has not evolved as a full-fledged system in India though is it operative through the NBFC route. The research paper tries to explain the concept of Islamic banking and discusses the various financial products offered by the Islamic banks. It weighs the various pros and cons of Islamic banking in India. SWOT analysis and Porter’s Five Forces Model are used to provide a thorough analysis of feasibility and scope of Islamic banking in India.
The paper reveals that India has a great potential for Islamic banking provided necessary changes in the regulations and guidelines are made to evolve it has an alternative system of banking. The law makers should view it from an economic point of view rather than a religious view for its successful implementation and for the welfare and upliftment of financially excluded sections of society that do not participate in conventional banking due to their religious beliefs.
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Schackmann-Fallis, Karl-Peter, Horst Gischer, and Mirko Weiß. "A Case for Boring Banking and Re-Intermediation." Applied Economics Quarterly: Volume 64, Issue 3 64, no. 3 (July 1, 2018): 199–238. http://dx.doi.org/10.3790/aeq.64.3.199.
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Abstract Experience from the recent financial crisis quite clearly revealed the limits of deregulation. Instead of trusting in perfect financial markets, re-intermediation or &#8220;boring banking&#8221; seems to be a more promising alternative. In our discussion of the steps towards a European Banking Union that have been implemented so far, we seek to expose its shortcomings. Against this backdrop, we discuss whether boring banking is an economically and socio-politically appropriate goal at all. Outlining the economical functions of banks, we investigate whether a widely disintermediated financial system can work without frictions. Additionally, we evaluate the concepts of bank-based and capital-market-based financial systems from the perspective small and medium-sized enterprises. By way of example, the structure of the German banking industry as well as different business models are analyzed in the light of boring banking. We conclude with economic policy recommendations deemed necessary to promote &#8211; or at least preserve &#8211; traditional loan-making by banks. JEL classifications: G18; G21; L52 Keywords: banking industry, financial intermediation, business models, European Banking Union
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Nyasha, Sheilla, and Nicholas M. Odhiambo. "The australian banking sector reforms: Progress and challenges." Corporate Ownership and Control 10, no. 4 (2013): 469–78. http://dx.doi.org/10.22495/cocv10i4c5art4.
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This paper gives an overview of the Australian banking sector; it highlights the reforms since the 1970s; it tracks the growth of the banking sector in response to the reforms implemented over the past five decades; and finally, it highlights the challenges facing the Australian banking sector. The country’s banking sector consists of more than 60 commercial banks, with the Reserve Bank of Australia, the country’s central bank, at the apex. Since the 1980s, the Australian government has implemented a number of banking sector reforms in order to safeguard and improve the banking sector. The response to these reforms by the banking sector has been varied. As a result of these reforms, there has been an increase in the number of banks and a decrease in the number of building societies and credit unions. There has also been an improvement in the central bank’s oversight of the financial institutions, and an enforcement of the banks’ capital-adequacy requirements. Currently, Australia has one of the most developed banking systems in the world. The country has enjoyed a substantial bank-based financial sector development over the years, and its institutional framework has also grown stronger. However, like any other country’s financial system, the Australian banking system still faces wide-ranging challenges, such as bank concentration and exposure.
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Kaushik, Surendra K., and Raymond H. Lopez. "Profitability of Credit Unions, Commercial Banks and Savings Banks: A Comparative Analysis." American Economist 40, no. 1 (March 1996): 66–78. http://dx.doi.org/10.1177/056943459604000109.
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The liberalization of product and price competition among depository intermediaries in the United States has tended to make them more similar since enactment of the Depository Institutions Deregulation and Monetary Control Act in 1980 (DIDMCA). Credit unions have developed into highly efficient organizations for meeting the basic financial needs of their members. Credit unions, although only one-twelfth their size, are at least as profitable as commercial banks and savings banks. The savings banking industry has maintained its competitive profitability as the industry has shrunk in the late 1980's and early 1990's. Credit union loan portfolios have grown more rapidly than either commercial banks' or savings institutions‘. Their net interest margins have been above the banks' in recent years. Growth in the equity capital accounts of credit unions has been consistently more than double that of commercial banks since 1985, giving them a substantial advantage with regard to overall “safety and soundness” compared with commercial and savings banks.
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Black, Sandra E., and Philip E. Strahan. "The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry." American Economic Review 91, no. 4 (September 1, 2001): 814–31. http://dx.doi.org/10.1257/aer.91.4.814.
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Until the middle of the 1970's, regulations constrained banks' ability to enter new markets. Over the subsequent 25 years, states gradually lifted these restrictions. This paper tests whether rents fostered by regulation were shared with labor, and whether firms were discriminating by sharing these rents disproportionately with male workers. We find that average compensation and average wages for banking employees fell after states deregulated. Male wages fell by about 12 percent after deregulation, whereas women's wages fell by only 3 percent, suggesting that rents were shared mainly with men. Women's share of employment in managerial positions also increased following deregulation. (JEL G2, J3, J7, L5)
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Rudawska, Edyta, and Sanda Renko. "Sustainability as the Direction for the Long-Term Success in Banking: Poland vs. Croatia." Folia Oeconomica Stetinensia 11, no. 1 (January 1, 2012): 97–117. http://dx.doi.org/10.2478/v10031-012-0002-0.
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Abstract Dynamic environment forces companies to develop new approaches to establishing objectives and to develop management practices. Apart from doing profit-making activities, companies are forced to undertake activities aiming at their long-term sustainable development. As a result of deregulation and globalization, the banking sector had to accept the postulations of sustainable development and to keep their position on the market through establishing lasting relationships with customers, environment organizations, employees and a local community. The main goal of this paper is to explore implications of sustainability on the banking sector. Based on the research on the sample of 33 bank managers, the paper is trying to find out whether there are similarities in sustainability aspects in the banking sectors of Poland and Croatia. The findings of the papers suggest that banks in Poland express stronger need to take into account the environmental, social and economic concerns comparing to banks in Croatia.
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Kosim, Zunarni, Nor Hayati Ahmad, and Tan Sek Choo. "Determinants of Sales Force Performance in Banking Sector: A Case of Malaysia." Information Management and Business Review 8, no. 4 (September 23, 2016): 13–23. http://dx.doi.org/10.22610/imbr.v8i4.1389.
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Globalisation, deregulation, technology, competition and new customers’ needs influence the banks to adopt marketing approach in promoting their product and services to generate income. In this aspect, personal selling which focuses on selling skills of banking employees becomes a very important banking function. This study intends to investigate the relationship between the determinants namely teamwork, learning, leadership, communication and, high performance culture and Key Performance Indicators (KPI). Inspite of the importance of KPI in measuring performance of salesforce, there is a lack of published empirical findings to explain the influence of these predictors on KPI achievement in banking sector.This study reported that the model explains 0.21 percent of the variance in KPI achievement. In which teamwork and high performance culture are found to be positive and significantly related. This new finding appears to imply that bank should cultivate and promote teamwork and high performance culture to ensure KPI highly achievable and enhance banks profitability.
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Kapstein, Ethan B. "Resolving the regulator's dilemma: international coordination of banking regulations." International Organization 43, no. 2 (1989): 323–47. http://dx.doi.org/10.1017/s0020818300032938.
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Since the early 1970s, bankers have developed a host of new financial instruments and practices. These innovations have altered the nature of banking, and this in turn has complicated the task of banking regulation. National regulations have become largely ineffective in monitoring the safety and soundness of global banks. The resulting market changes and the growth of knowledge about the risks facing the international financial system have prompted governments to hold multilateral discussions regarding banking regulation. However, the task of international regulation has been compromised by the desire of states to attract foreign and domestic investment to the financial sector. Since states wish to create or maintain competitive banking institutions, they have often deregulated in order to provide banks with a cost advantage in the international marketplace. This “competitive deregulation” undermines collaborative efforts.Under the leadership of the United States and Great Britain, a multilateral agreement on bank capital standards was reached in December 1987. This agreement suggests that the interplay of market factors, consensual knowledge, and leadership by powerful states can lead to international policy coordination. The article describes the multilateral negotiations that led to this banking accord.
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Husnain, Muhammad, Qaisar Maqbool Khan, Mumtaz Ahmad, and Zainab. "Impact of Credit Risk on Financial Performance: Mediating role of Operational Efficiency in banking Sector of Emerging Economy." Sustainable Business and Society in Emerging Economies 3, no. 3 (September 30, 2021): 253–63. http://dx.doi.org/10.26710/sbsee.v3i3.1930.
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Purpose: Financial performance of banks is an estimation of how better a company can use its assets for generating profits. Mostly the performance of banks is affected by modernization of financial system, technological advancements and deregulation. The aim of this study is to examine the mediating role of operational efficiency in relationship between credit risk and financial performance of banks.
Design/Methodology/Approach: The research sample is 29 banks of Pakistan. Data for the study is collected from the published financial statements of banks ranges from 2011 to 2018. The data analysis technique used in this study is simple mediation analysis in structure equation modeling.
Findings: The results reflect that operational efficiency partially significantly and inversely mediates the relationship of credit risk with financial performance.
Implications/Originality/Value: One the basis of results it can be suggested that managers need to utilize their deposits carefully and should take more precautionary measures while granting loans. Managers and employees should maintain a better relationship and align their goals with the banks.
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Adu, Abraham, and Keshab Bhattarai. "IMPACT OF FINANCIAL LIBERALIZATION ON CONCENTRATION AND COMPETITION IN THE GHANAIAN BANKING SYSTEM: A PANZAR-ROSSE ANALYSIS." JOURNAL OF DEVELOPMENT ECONOMICS AND FINANCE 3, no. 2 (2022): 253–73. http://dx.doi.org/10.47509/jdef.2022.v03i02.01.
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This paper empirically investigated the evolution of market concentration in Ghana. It tests market competitiveness in banking systems post financial sector reforms. Using unbalanced panel data of 24 banks in the period 2003-2012, a period characterized with deregulation, liberalization and consolidation of the banking sector in Ghana. Market concentration in the Ghanaian banking sector is measured by the Hirschman-Herfindahl indices as well as CR3 and CR5 with this panel data. Both CR3 and CR5 had a decreasing trend indicating falling market concentration ratios and increasing rate of competition in the Ghanaian banking industry. The degree of competition based on the revenue elasticity to input approach under Panzar-Rosse framework indicates monopolistic competition in both interest based market and total revenue markets relative that in the non-interest based market in the Ghanaian banking industry.
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Ikpefan, Ochei Ailemen, and Benny Chukwudumebi Oligbo. "The Impact of Mergers on Bank Competitiveness in Nigerian Banking Industry." International Journal of Innovation in the Digital Economy 3, no. 4 (October 2012): 64–80. http://dx.doi.org/10.4018/jide.2012100104.
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An inclusive merger mechanism became one option for the Nigerian banking industry in response to a Central Bank of Nigeria’s policy to increase the minimum paid-up share capital requirement of Nigerian banks from N2 billion to N25 billion in July 2004, with December 31, 2005 as deadline. More than half of the 89 banks in Nigeria as at July 2004 were engaged in one form of merger. The study objective gives insight into the effectiveness of economic policy reforms in the Nigerian banking industry. This study examines the merger’s impact on bank competitiveness between 2000 and 2009. The period was characterized by financial deregulation, the Global economic crisis, and bank restructuring programs. The panel data ordinary least squares approach is the methodology employed to investigate if there is any significant effect of merger on the bank competitiveness from the pre to the post merger periods, in order to detect whether bank mergers produce any performance gains as well as factors contributing to the competitiveness in the Nigerian banking industry.
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Santillán-Salgado, Roberto. "Banking concentration in the European Union during the last fifteen years." Panoeconomicus 58, no. 2 (2011): 245–66. http://dx.doi.org/10.2298/pan1102245s.
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The increase in the concentration of the banking industry across European Union countries during the last fifteen years can be explained in terms of: a) global factors, like the comprehensive adoption of technological innovations, the intensification of competition that has resulted from the deregulation of the financial sector and, more recently, as a consequence of the government interventions and forced acquisitions prompted by the 2007-2009 financial crisis; and, b) factors that have been specific to the E.U., in particular, the structural changes that took place in the region as a result of the creation of the Single Financial Market (1993) and the introduction of the euro (1999). This work analyzes the concentration process of the banking industry in the E.U. during the last fifteen years giving preeminence to the strategic choices made by the region?s commercial banks. It also reports the most visible E.U. banks? M&As and government interventions that resulted from the 2007-2009 financial crisis, make a preliminary evaluation of the outcomes, and suggests possible future trends for the banking industry in the region.
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Kołodziej, Elżbieta. "THE IMPORTANCE OF THE BANKING UNION FOR THE STABILITY OF THE FINANCIAL SECTOR IN THE EURO AREA." Annals of the Polish Association of Agricultural and Agribusiness Economists XIX, no. 6 (January 10, 2018): 129–34. http://dx.doi.org/10.5604/01.3001.0010.7917.
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The research goal of this study is to assess the significance of the banking union for the stability of the financial sector in the euro area. A review of available literature, legal acts and the analysis of statistical data relevant to the research objective of the work turned out to be necessary to prepare the work. The financial crisis that began in 2007 had its source in the deregulation of financial markets, the lack of legal framework for supervisory institutions and inadequately functioning market information system. Public aid for banks in the EU within 5 years (2008-2012) amounted to nearly EUR 4 trillion. The majority of public aid (75%) was addressed to euro area banks. The largest amounts of public aid were directed to support banking systems in Ireland, the United Kingdom, Germany and Spain. In the case of Ireland, this led to almost bankruptcy. The crisis has led to changes in the approach to the security of the financial sector including the banking sector of countries belonging to the euro area. The most important project implemented in response to the financial crisis is the banking union. The banking union is based on three pillars: the Single Supervisory Mechanism (SSM), Single Resolution Mechanism (SRM), the Single Deposit Guarantee Scheme (SDGS).
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Ristić, Kristijan, and Mirjana Jemović. "Analysis of Non-Performing Loans’ Determinants in the Banking Sector of the Republic of Serbia." Economic Themes 59, no. 1 (March 1, 2021): 133–51. http://dx.doi.org/10.2478/ethemes-2021-0008.
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Abstract After the financial deregulation that marked the last two decades of the 20th century, banks lost their monopolistic position and faced a number of competitors on the financial market. Fighting for their market share, banks began to grant loans under more relaxed terms. This policy increased the share of non-performing loans (NPLs) and ultimately increased credit risk in the banking sector. The share of non-performing loans in total loans indicates the quality of bank assets, so their analysis and trend are an important parameter in assessing the stability of the banking and overall financial sector. The paper aims to analyze the NPL trend in the banking sector of the Republic of Serbia in the period from 2010-2019 and, thus, identify determinants that significantly affect the extent of credit risk. The research uses vector autoregressive model (VAR), and the results confirm that gross domestic product, inflation, unemployment, return on total assets (ROA), cost efficiency, capital adequacy ratio, and income diversification affect NPLs. The analysis shows that the level of non-performing loans depends on a number of factors, both macroeconomic and bank-specific, which regulatory authorities must keep in mind when assessing the credit risk that banks face.
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Tucker, Mark, Christine Jubb, and Chee Jin Yap. "The theory of planned behaviour and student banking in Australia." International Journal of Bank Marketing 38, no. 1 (July 18, 2019): 113–37. http://dx.doi.org/10.1108/ijbm-11-2018-0324.
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Purpose The purpose of this paper is to investigate the extent to which the three constructs associated with the theory of planned behaviour (TPB) can explain student banking intentions and assist in understanding their bank satisfaction. Design/methodology/approach This research issue was investigated using a mixed methods approach, incorporating both qualitative and quantitative methods. Convenience sampling was used. Factor analysis and logistic regression were used to ascertain the relevance of the TPB in explaining student banking intentions. Findings Using factor analysis, perceived behavioural control was shown to be the key determinant in explaining student banking intentions. Using a logistic regression, the TPB was shown to have strong application in predicting customer satisfaction with all three of its constructs significant, but weaker application for predicting the likelihood of a bank switch, with subjective norms and attitude significant, and even less for the likelihood of recommending the bank to a friend, with only perceived behavioural control significant. Research limitations/implications The use of an online survey which limits the pool of respondents to internet users, together with the sample size, limit the generalisability of findings. Practical implications Banks can better target and understand the drivers that influence both student banking intentions and customer satisfaction. This knowledge will allow banks to better attract and retain student customers. Originality/value Provides insight to and a better understanding of how the TPB can explain and predict student banking intentions. This study fills a gap in the literature by concentrating on student banking behaviour in Australia, a substantial segment of bank customers that has received little research.
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Heard, Christopher, Flavio M. Menezes, and Alicia N. Rambaldi. "The dynamics of bank location decisions in Australia." Australian Journal of Management 43, no. 2 (September 6, 2017): 241–62. http://dx.doi.org/10.1177/0312896217717572.
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This article exploits a large panel to study trends in, and determinants of, the decisions made by the four largest Australian banks about whether to establish or maintain branch- and automated teller machine (ATM)-level presence in a local market between 2002 and 2013. These decisions are potentially important for competition in local banking markets. Our analysis suggests that past presence is the most important factor for explaining current presence in a particular local market. Moreover, we present evidence that the four largest banks co-locate branches. The relationship between the location of other (smaller) banks and the location of the four largest banks is less clear; there is some limited evidence that this relationship is negative for two of the four largest banks. Our results also suggest that the four largest banks displayed changed behaviour in terms of their branch location decisions after the global financial crisis and that the changes differed between banks. Our analysis of ATM location decisions reveals that the four largest banks follow different strategies. These results suggest that Australian banks did not shy away from this limited form of competition, either before or after the global financial crisis (GFC). JEL Classification: C23, D43, G21, L13