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1
Kolia, Dimitra Loukia, and Simeon Papadopoulos. "Integration in banking efficiency: a comparative analysis of the European Union, the Eurozone, and the United States banks." Journal of Capital Markets Studies 6, no. 1 (November 30, 2021): 48–70. http://dx.doi.org/10.1108/jcms-08-2021-0026.
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PurposeThis paper investigates the development of efficiency and the progress of banking integration in the European Union by checking for convergence among banks of European and Eurozone countries as well as contrasting the results with those of United States banks.Design/methodology/approachInitially, we employ the two-stage semi-parametric double bootstrap DEA method, which absorbs the effects of possible integration barriers in the measurement of efficiency. Afterwards, we apply a panel data model, in order to investigate the process of banking integration by testing for convergence and for convergent clusters in banking efficiency.FindingsOur main findings show that the bank efficiency of the US is considerably higher than that of the Eurozone and the European Union. Although there is no evidence of convergence across the banking groups, our results indicate the presence of club convergence. We also conclude that the US banking system is closer to convergence than the Eurozone and the European Union banks. Nevertheless, this outcome is subject to change in the future due to the fact that Eurozone and European Union banks' speed of convergence is higher than that of US banks.Originality/valueOur survey is unique in trying to check for convergence while controlling for country-specific and bank-specific factors that affect the efficiency of European and Eurozone banks. Moreover, recent literature does not compare the convergence of efficiency of Eurozone, European and US banking. Finally, in our paper special consideration was given to the comparison of commercial, cooperative and savings banks, as subsets of our banking groups.
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Mol-Gómez-Vázquez, Ana, Ginés Hernández-Cánovas, and Johanna Koëter-Kant. "Do foreign banks intensify borrower discouragement? The role of developed European institutions in ameliorating SME financing constraints." International Small Business Journal: Researching Entrepreneurship 38, no. 1 (August 3, 2019): 3–20. http://dx.doi.org/10.1177/0266242619868231.
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The growing activity of foreign banks in most European countries may increase financing constraints by intensifying the problem of borrower discouragement. We provide new evidence of this association by analysing a sample of small and medium-sized enterprises (SMEs) operating in 25 developed and developing European countries. We find that financing constraints increase with foreign banks for those SMEs operating in countries where the share of banking assets owned by foreign banks is above 34%. Our results also show that borrower discouragement may decrease, or increase less, with the presence of foreign banks for SMEs operating in countries with high income, with cheap debt enforcement mechanisms, or having a private bureau that provides credit information about firms and individuals. These results suggest that unification towards better institutions needs to occur in Europe before the banking union progresses to a more open banking system.
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Tsyganov, Alexander A., and Sergey V. Maslennikov. "INSURANCE REGULATION PECULIARITIES IN THE BANK INSURANCE PRACTICE IN THE EUROPEAN UNION." Banking law 6 (December 10, 2020): 44–57. http://dx.doi.org/10.18572/1812-3945-2020-6-44-57.
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In the Russian Federation, bancassurance has already become a relatively common type of interactions between banks and their customers in selling insurance, with banks being the main channels for distributing insurance services in exchange for commission. Borrowers are known to be the weaker side of a contract, which leads to banks impose insurance services and commission, which the banks may capitalize on. This indicates a significant issue for the local antitrust and banking regulations. The article describes the expertise in managing these activities in the member countries of the European Union and provides recommendations for a possible legal regulation of insurance and banking activities in Russia.
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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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Anarfi, Daniel, and Danuše Nerudová. "Profit Shifting and the Tax Response of Multinational Banks in Eastern Europe." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 66, no. 3 (2018): 729–36. http://dx.doi.org/10.11118/actaun201866030729.
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The aim of the paper is to measure the amount of profit shifting within the banking sector in Eastern European countries. The paper uses firm‑level bank data from the Bankscope database of multinational subsidiary banks operating in Eastern Europe for a period of 10 years (2006-2015). An empirical analysis is performed on the panel data to identify the profit‑shifting activities of these banks. Focusing on the banking sector of Eastern European countries, which are a microcosm of the European Union, substantial evidence of profit shifting is found and confirms that banks have enhanced tax‑planning opportunities similar to firms from different jurisdictions. The paper also seeks to contribute to recommendations on how fair and sustainable taxation and social policy reforms can increase the economic stability of the EU member states.
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Ungureanu, Maria Cristina. "Banks: regulation and corporate governance framework." Corporate Ownership and Control 5, no. 2 (2008): 449–58. http://dx.doi.org/10.22495/cocv5i2c4p6.
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The banking sector industry is somewhat unique because it is simultaneously consolidating and diversifying. Banks’ major role in stabilising the financial systems of countries and in spurring their economic growth explains the particularities of their own corporate governance. The specificity of banks, the volatility of financial markets, increased competition and diversification expose banks to risks and challenges. The banking industry is heavily regulated and supervised in every country around the globe. This, in turn, establishes a particular corporate governance system. The paper lays out the specific attributes of banks that influence their regulatory and supervisory environment, which, in turn, creates a unique corporate governance framework for the banking industry. The paper emphasises the benefits and limits of regulations and supervision on banks’ corporate governance and focuses its empirical results on the European Union countries.
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SHULGA, Natalia, and Serhii SAVLUK. "Innovations in strengthening the stability of European Union banks and their synchronization in Ukraine." Fìnansi Ukraïni 2023 (November 2, 2023): 48–61. http://dx.doi.org/10.33763/finukr2023.09.048.
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Introduction. The European Commission took a new step in the development of the system of financial security of banking sector and protection of the interests of depositors and creditors of banks, approving Document 52023DC0225 “On the review of the crisis management and deposit insurance framework contributing that completing the Banking Union”, which, together with the previously created regulatory framework, are extremely useful for Ukraine in order to harmonize financial legislation with the requirements of the European Union. Problem Statement. Determining the vectors of development, the system of banking regulation and supervision, guaranteeing deposits of various categories of bank` clients in the countries-members of the European Union, as well as preparing recommendations for synchronizing this experience in Ukraine. Purpose. Disclosure of modern trends in reforming the system of banking regulation and supervision, protection of bank depositors in EU countries, as well as outlining prospects for further use of this experience in Ukraine. Methods. General scientific and special methods of analysis, synthesis, grouping, description, comparison, calibration of important elements, abstract and logical, generalization are used. Results. Three pillars are defined, on which the unified system of banking regulation and supervision in the EU member states is based; the concept of “Resolution” in relation to banks is analyzed; the genesis of the EU legislation regarding banks recover and liquidation has been recreated, taking into account the innovations in 2023; a comparative analysis of the approaches of the EU and Ukraine regarding the rehabilitation/liquidation of banks and the banks deposit guarantee system is carried out; conceptual directions for the development of Ukrainian legislation in this area are proposed. Conclusions. The European Union continues to adopt measures aimed at strengthening the financial stability of the Banking Union and increasing trust in banks of all economic entities. The EU is developing a new vector of financial policy aimed at early diagnosis of bank problems, introduction of an adequate crisis management system as opposed to their preventive liquidation. The range of coverage by the deposit guarantee system is expanding not only for the population, but also for businesses, pension funds, municipalities and other bodies, while maintaining the maximum compensation amount of EUR 100,000. The introduction of this approach and other innovations in the system of guaranteeing banking financial security in Ukraine should be considered in the post-war period. At the same time, in our opinion, it would be expedient to form: a fund guaranteeing deposits of socially significant organizations and enterprises with a limit on the size of the maximum compensation; the mechanism of resolution of banks with the corresponding financing fund; the system of early replacement of the management of problem banks and the bail-in mechanism.
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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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Gibilaro, Lucia, and Gianluca Mattarocci. "Cross-border banking and foreign branch regulation in Europe." Journal of Financial Regulation and Compliance 29, no. 3 (May 13, 2021): 280–96. http://dx.doi.org/10.1108/jfrc-08-2020-0072.
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Purpose This paper aims to examine the relevance of cross-border activity in the European banking sector, evaluating the role of differences in regulation to explain the level of interest in entering foreign markets. Design/methodology/approach The sample considers all banks in the European Union (EU 28) existing at year-end 2017, and information about the ultimate owners’ nationality to classify local and foreign banks is collected. The analysis provides a mapping of regulatory restrictions for foreign banks and evaluates how they impact the role of foreign players in the deposit and lending markets. Findings Results show that the lower are the capital adequacy requirements, the higher are the amounts of loans and deposits offered by non-European Economic Area banks and, additionally, the higher the probability of having a foreign bank operating in the country. Originality/value This paper provides new evidence on regulatory arbitrage opportunities in the EU and outlines differences among EU countries not previously studied.
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Druhov, Oleksiy, Vira Druhova, and Olena Pakhnenko. "THE INFLUENCE OF FINANCIAL INNOVATIONS ON EU COUNTRIES BANKING SYSTEMS DEVELOPMENT." Marketing and Management of Innovations, no. 3 (2019): 167–77. http://dx.doi.org/10.21272/mmi.2019.3-13.
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This article summarizes the arguments and counterarguments in the framework of the scientific discussion on determining priority directions of developing banking systems, modern problems and prospects of introduction of financial innovations in the process of development of banking services. Its pace and current trends require a completely scientific basis. Accordingly, the purpose of the study is to determine the impact of modern information technology in the banking systems of the European Union countries and the future prospects for their development. For this purpose, the hypothesis was, first of all, proposed that the level of business activity of the banking activity is related to the level of development of the country's economy and it will determine in the future the development of the banking systems of these countries. An appropriate empirical study was conducted to confirm this hypothesis. The systematization of literary sources and approaches to the solution of this problem has shown that in scientific sources the analysis of the impact of financial innovations on the banking systems of individual European Union countries is mainly carried out. Taking into account the different levels of development of these countries, these studies do not allow us to make conclusions and suggestions as to the future of European banks. Electronic banking, the creation of a large number of fi tech companies, crypto volume, blockade – radically change the classical banking business. These changes are gaining momentum and the future of the banking system is now very ambiguous. Will classical banks be able to function effectively, or will new financial companies come to their place? What should I do to manage the bank to lay the groundwork for its successful operation, in the context of the rapid development of information technology? Who and how will regulate global financial markets? There are no clear answers to these questions. The methodical toolkit of the study was a clustering method, methods of systematization, grouping, comparison, expert evaluations. The study period covers 2015-2018, which shows the most rapid dynamics of changes in the processes of customer service of banks from the offline to the online sphere. In addition, this period of time is characterized by the rapid development of financial innovation, which radically changes the approaches to traditional banking activities. The article presents the results of cluster analysis, the results of which allowed to group the countries of the European Union at different levels of digitalization. As a result, it was found that the most advanced economies and the most developed countries have the highest level of deductibility of banking activity (related to clusters 2 and 1). As a higher level of economic development provides more opportunities for investment, Internet access and better education of the population. In addition, it can be argued that it is the countries from the first group in the near future will or will become leaders in the European market of banking services, and it is on them that they will need to be guided by the orientation of the development of the banking system. The results of empirical analysis, have shown that banking institutions understand the lack of prospects of activities without financial innovation. On the other hand, as the study showed, such activity is characterized by high-risk banks. The issue of safety of up-to-date financial transactions is extremely important for supervisors who can not at the moment agree on what measures to apply and implement in order to minimize the risks of financial transactions. The study empirically confirms and theoretically proves that it is important to understand and justify the basic principles of the future development of banks, to identify and develop measures to minimize the levels of financial risks associated with the implementation of financial innovations, as well as to simply understand and evaluate changes expected by users of banking services during the next 5 to 10 years. The results of the research can be useful for scientists, management of banking and other financial institutions, as well as for users of banking services.
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Barbu, Teodora Cristina, Iustina Alina Boitan, and Sorin Iulian Cioaca. "Macroeconomic Determinants of Shadow Banking – Evidence from EU Countries." Review of Economic and Business Studies 9, no. 2 (December 1, 2016): 111–29. http://dx.doi.org/10.1515/rebs-2016-0037.
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AbstractShadow banking is a topical, debated issue on the agenda of national and European macro-prudential regulatory and supervisory authorities. It is generally accepted that shadow banks and the traditional banking system have some core functions in common, such as credit and maturity transformation, and the exposure to similar risks. However, the tight banking regulations and the decreasing trend recorded by interest rates in the post-crisis period create prospects for shadow banking sector growth. Against this background, the present paper aims at investigating the particular impact that shadow banking activity exerts on macroeconomic fundamentals. The analysis covers 15 European Union countries, including Romania, during the period 2008 – 2015, using quarterly data. Shadow banking system is used as a proxy by monetary funds, due to breaks in the series or unbalanced number of observations across selected countries. By employing panel regression, it was found that the shadow banking total assets’ variation is negatively influenced by the GDP growth, short term interest rates, M2/GDP ratio and the ratio of investment funds’ assets in GDP, and positively determined by stock index dynamics and long term interest rates. The findings sustain the literature’s point of view
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Prokopowicz, Dariusz. "CONDITIONS FOR INTRODUCING A BANKING TAX IN POLAND." International Journal of Legal Studies ( IJOLS ) 2, no. 2 (December 29, 2017): 135–60. http://dx.doi.org/10.5604/01.3001.0012.2248.
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This article describes the main determining factors of the implementation of a bank tax in commercial banks that run their activities in Poland. It also considers the importance of legal regulations of the rules for collecting this tax. The global financial crisis of 2008 was an important factor that has stimulated the processes of improving legal regulations concerning banks. Weakening economic situation and higher risk caused the need to improve procedures and banking legal regulations of the financial transactions safety in Poland. Improvement of banking system financial procedures is correlated with gradually progressing globalization but also with anti-crisis socio-economic policy in Poland. Therefore, the level of adaptation of legal procedures and norms regarding commercial banks in Poland to the European Union standards and guidelines of the Basel Committee is continuously improving. One of the specific aspects of these adjustment processes was the introduction of a bank tax, which operates in most European Union countries. The introduction of this tax could be one of the factors determining the sale of subsidiary companies, i.e. banks that are controlled in Poland by foreign financial institutions. Therefore this can be an important factor, which would accelerate the process of repolonization of the banking sector in Poland. The economically effective introduction of a bank tax depends among other things on efficient legislative process.
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Michael, Okoche. "Political Dimension in Pan-African Cross-border Banking: An Inhibitor or Catalyst?" Business and Management Studies 5, no. 1 (January 22, 2019): 1. http://dx.doi.org/10.11114/bms.v5i1.3984.
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The emergence and the dominance of African banks in Africa have been touted as one of the popular mechanisms for financial development leading to a concept termed as Pan-African cross-border banking. African Banks have become dominant in the African market as opposed to European colonial banks substantially increasing their geographic footprints on the continent. African banks have become economically significant beyond their home countries and of systematic importance in a number of jurisdictions. This systematically examined the influence of the political environment on Pan-African cross-border banking using Kenya Commercial bank as a case study.Interpretive research paradigm guided the study seeking using qualitative data by interviewing employees, managers, and policymakers from the three subsidiaries of Kenya Commercial Bank; Uganda, Rwanda, and Burundi. This was further supported by secondary data collected from journal articles and reports from the Kenya Commercial Bank.The study established that political environment plays an important role in influencing Pan-African cross-border banking either through catalysing or inhibiting. Despite effort integration by African Union, regional unions like East African Community there still areas for improvement. In order to enhance Pan-African cross-border banking, there has to be systematically management of political environment which was distorted by history, ideologies, different political systems, different regulatory frameworks between the subsidiaries and home countries. This will further enhance the significance of Pan-African banks African cross-border banks enhancing economic development within Africa.
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Nayebyazdi, Arash. "Social capital and banking system profitability: A survey of European Union countries." European Journal of Government and Economics 8, no. 1 (June 24, 2019): 48–62. http://dx.doi.org/10.17979/ejge.2019.8.1.4575.
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Over the last years, the concept of social capital as a facilitator of economic activities has been a remarkable issue among economists. In this article, we study the impact of social capital on banking performance focusing on profitability in the European Union for period 2008-2016. Social capital indicators are applied in the model are "trust in others" and "fair behavior of others". We expect more profitable banks in societies with higher levels of social capital. According to the type of data, we apply GMM estimator to do more efficient estimations. We use auxiliary variables such as bank asset, capital adequacy, real interest rate, the cost to income ratio as micro variables, GDP and inflation are employed as macros. Our estimations point at a rejection of the main hypothesis. Opportunistic behavior and less social trust result in more profits for European countries. We justify the results in two ways. First, due to the 2008 financial crisis, trust in all institutions has decreased in European countries. The second reason concerns countries with low levels of social capital. The decrease of trust for the banking system is lower than for other institutions. Therefore, that sector may benefit is such circumstances.
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SHULGA, Nataliya, and Serhii SAVLUK. ""Environmental" vector of banking regulation: the EU model." SCIENTIA FRUCTUOSA 153, no. 1 (February 16, 2024): 110–26. http://dx.doi.org/10.31617/1.2024(153)07.
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Ukraine is on the verge of joining the European Union, which requires, on the one hand, the transformation of the regulation of banking activity in accordance with the standards adopted by it, and on the other hand, the implementation of the concept of sustainable financing in all spheres of public life, including the banking system. Recently, a stable trend has emerged in the countries of the Euro zone, which consists in liaison of the mechanism of regulation of banks’ activity to the goals of sustainable financing, which makes it necessary to do changes to the existing standard of requirements for the capital of credit institutions (CI) and to regulate its adequacy. The mentioned metamorphosis has also spread to the banks of Ukraine, which are only taking the first steps in the direction of introducing the key principles of sustainable financing into their practical work. Along with the above, in the near future the domestic banking sector may face the problem of "greening" the mechanism of regulation of their activity according to European standards, directives, regulations and guidelines. Solving this extremely difficult problem will require the NBU to take decisive and, at the same time, well-balanced measures, which would not hinder the active development of investment and lending in a sustainable economy. The aim of the study is to reveal the key provisions of the regulation of banks in the EU, to determine the vectors of their change in accordance with the goals of sustainable financing, as well as to develop recommendations for the banking sector of Ukraine. In this research, methods of scientific knowledge were used, in particular: observation, theoretical generalization, abstracttion, comparison, analysis and synthesis, induction and deduction. The main provisions of the Directive on capital requirements and regulation of capital adequacy of banks in the European Union are outlined. The essence of harmonious finance and the stages of its transformation in EU countries are revealed. The ecological vector of the regulation of banks’ activities was considered, and the difficulties and prospects of its implementation in the banks of Ukraine were determined. A "chain" of step-by-step implementation of the NBU’s "environmental" regulatory initiatives in Ukrainian banks is proposed based on the best European practices and the possibilities of their implementation in a country at war.
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Bryhinets, Oleksandr, and Dmytro Vasyliuk. "PRUDENTIAL REGULATION OF BANKING ACTIVITIES IN THE EUROPEAN UNION." Administrative law and process, no. 1 (2024): 28–39. http://dx.doi.org/10.17721/2227-796x.2024.1.02.
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Purpose. The purpose of the article is to analyze prudential regulation of banking activity in theEuropean Union and to provide proposals for improving prudential regulation in Ukraine.Methodology. The methodological basis of the research is the dialectical method, which allows youto investigate the set of phenomena in the relationship; a comparative method that allows you tosave the studied phenomena; the method of studying international practice, as well as the methodsof analysis, synthesis, deduction, induction, historical-legal method and formal-legal method. Results. The first section of the article analyzes categorically – the conceptual apparatus ofprudential regulation of banking activity as a type of banking regulation in particular, as well asthe place of prudential regulation of banking activity and its significance for the financial systemof Ukraine.The second section of the article is devoted to the study of prudential regulation of banking activityin individual member states of the European Union (France, Federal Republic of Germany).The third section of the article is devoted to the study of practical problems that arise in theimplementation of prudential regulation and prudential supervision and the provision of proposalsfor improving banking regulation in Ukraine.Conclusions. Prudential regulation of banking activity is an important component for thedevelopment and maintenance of the stability of the banking sector. The successful functioningof the market economy of Ukraine, like that of other countries, is connected with the efficiency ofthe functioning of the market of banking services, in particular credit institutions. Conducting ananalysis of prudential regulation is particularly relevant, because this topic has not yet receivedproper development in the scientific works of scientists and is only beginning to gain practicalsignificance. This study makes it possible to draw a number of basic conclusions about the legaland economic nature of prudential regulation and its main element – prudential supervision, tostudy the legal position of the subjects of this activity, to analyze the problems of the developmentand use of this system, as well as the experience of foreign countries in solving them. Prudentialsupervision ensures transparency and transparency of banking activities and is aimed atpreventing potential negative phenomena in the banking sector as a whole and, in particular,stopping excessively risky or illegal activities in specific banks, which can lead to the bankruptcyof a credit organization, and sometimes to systemic banking or even economic crises. It can beconcluded that effective prudential supervision is an integral part of the system of prudentialregulation of banking activity and is of crucial importance for maintaining the stability of thebanking sector, which is confirmed during the analysis of systemic banking crises.
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Zielińska, Klaudia. "Unknown Future of the Banking Union’s Third Pillar." Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego 19(34), no. 1 (April 1, 2019): 172–79. http://dx.doi.org/10.22630/prs.2019.19.1.16.
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The aim of the article is to evaluate the process of building the third pillar of the banking union. The analysis of the problem required both subject literature studies and descriptive statistics. Time scope of the analysis covers the years 2012 until 2017. The relevant data used came from the European Central Bank and the European Banking Authority. The results of the study suggest that the creation of a European Deposit Guarantee Scheme is inevitable for further financial integration in the Eurozone but more detailed conditions need to be added to its implementation plan in order to have the scheme established. This stems from both the bad financial standing of some of the euro area banks and their dependency on the sovereign debt of their home and host countries. Studies also indicate low operational readiness of the national schemes, so a transition from re-insurance onto co-insurance phase will require increased efforts of both the Member States and the banks themselves.
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Doran, Nicoleta Mihaela, Roxana Maria Bădîrcea, and Alina Georgiana Manta. "Digitization and Financial Performance of Banking Sectors Facing COVID-19 Challenges in Central and Eastern European Countries." Electronics 11, no. 21 (October 26, 2022): 3483. http://dx.doi.org/10.3390/electronics11213483.
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The COVID-19 pandemic deeply impacted not only human wealth but also all segments of the economy as well as the field of technology. Thus, the purpose of this paper was to analyze the effects that the pandemic crisis and digitization have had on the financial performance of banks in Central and Eastern European Union countries (CEEC) during the 2010–2021 period. In order to capture an overview of the financial performance of the banking systems in the 10 CEECs, we used three variables—ROA, ROE and NPL—as reference indicators. In order to highlight the impact of the COVID-19 pandemic on the performance of banking systems, we used the number of reported cases as a variable, and to highlight the impact of digitization, we used as indicators the number of automated teller machines (ATMs) per 100,000 adults, number of certificates of secure internet servers, number of credit cards, number of debit cards, percentage of individuals using internet banking, and the number of commercial bank branches per 100,000 adults. Thus, the impact of digitization and the pandemic crisis generated by the COVID-19 virus on the performance of the banking systems in the 10 CEECs is outlined through three regression models using the robust regression model. The obtained results show that, as the infection rates with COVID-19 increased, the performance of banks measured by ROE and ROA decreased. Regarding the impact of digitization on performance, we note that an increase in the use of internet banking and the security of bank servers generated positive effects on the performance of banks. The results of the study are useful for banking product development departments, who should consider the important role of digitization in increasing the performance of banking services and thus design new digital products or ways to expand existing ones on a larger scale.
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Pešić, Ivana V., and Gajo M. Vanka. "EU Crises Multiplier - From One Crisis To Another." Economic Themes 52, no. 2 (June 1, 2014): 215–41. http://dx.doi.org/10.1515/ethemes-2014-0015.
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Abstract Since the wide spreading of the European Union (EU) crisis begun, the research papers have been providing different definitions such as currency crisis, competitiveness crisis, banking crisis, balance of payment crisis, but the most frequent notion of EU crises is the sovereign debt crisis. In this paper, the researchers agree that the current European crisis can be identified as sovereign debt crises at its surface, but in order to search for solutions of EU problems, we must look deeper into the sources of this crisis. Through this paper, the multiplication of crisis is explained, whereby it is being concluded that one type of crisis led to another, while staying on the point that the Eurozone current crisis is basically a combination of two core crisis: balance of payment crisis and banking crisis. In order to support the hypothesis that sovereign debt crisis is deeply connected with balance of payment crisis, we have analysed the trade and capital flows of European countries. It was discovered that periphery countries mostly financed their current account deficit, trade deficits and public deficit through external borrowing from creditor countries. Further, the periphery countries have been cumulating not only trade deficit in trade activity with other European partners, but also in trade with the rest of the world. The key source of imbalances between the European countries seems to be a different level of competitiveness caused by different level of productivity. As the second face of EU crises, we recognised a banking crisis. We found that sovereign debt crisis and banking crisis are interconnected but banking crisis usually precedes the debt crisis. With the fast growth of international capital flows, financial integration was strongly regionally concentrated and became especially important within the EU. Through the analysis of the international investment position of creditor countries, it was concluded that these countries are more integrated within the euro area through financial flows than through real economic flows. Additionally, it was discovered that creditor countries’ banks were among the biggest investors in bonds of periphery countries such as Greece. In other periphery countries such as Ireland, banking crisis and subsequent measures for the rescuing of banking system led to the increase of public debt. In the other countries, banks were faced with solvency problems due to bad debt holdings. Having in mind that we found interconnection of the debt crisis with balance of payment crisis on the one side, and with the banking crisis on the other side, the conclusion is that sovereign debt crisis in the Eurozone is a result of two-core crisis: balance of payment crisis and bank crisis. Reckoning on the European Union history where each crisis usually led to the stronger integration, maybe the current crisis is a step further towards better and deeper integration.
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Gutiérrez-López, Cristina, and Julio Abad-González. "Sustainability in the Banking Sector: A Predictive Model for the European Banking Union in the Aftermath of the Financial Crisis." Sustainability 12, no. 6 (March 24, 2020): 2566. http://dx.doi.org/10.3390/su12062566.
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Given the central role of banks in financial stability and the recent impact of their insufficient capitalization, this article focuses on finding determinants of their solvency through financial variables. The study considers the European Banking Union framework and the results of the latter stress test exercises, using a panel of the 45 banks based in 15 European countries that were stress tested in 2014, 2016 and 2018. This paper models bank soundness proxied by the stressed tier capital 1 ratio by means of financial indicators representing a CAMELS (Capital, Assets quality, Management, Earnings, Liquidity and Sensitivity to market risk) approach as well as global systemically important financial institutions (G-SIFIs) additional requirements. The model also specifies a dummy covariate referred to the disclosure of corporate social responsibility (CSR) reports, adopting a comprehensive sustainability scheme. The research period starts with the European Banking Union and includes the three exercises conducted since then. We find that financial sustainability is positively correlated with higher capitalization, earnings and liquid assets, while poor quality assets (high non-performing loans) and inefficiency impact negatively on bank soundness. Moreover, it considers the year-scenario interaction either as a fixed or a random effect. The results support capital and liquidity regulation and highlight factors that reinforce banking soundness. They also reveal a positive connection between CSR and banking solvency.
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van Loon, Eric, and Jakob de Haan. "Location of banks and their credit ratings." Journal of Risk Finance 16, no. 3 (May 18, 2015): 220–32. http://dx.doi.org/10.1108/jrf-11-2014-0161.
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Purpose – This paper aims to examine whether credit ratings of banks are related to their location, i.e. inside or outside the Euro Area. Design/methodology/approach – The authors estimate a multilevel ordered probit model for banks’ credit ratings in 2011 and control for bank-specific factors. They use the overall ratings and the external support ratings provided by Fitch as the dependent variable. Findings – Banks located in Euro Area member countries, on average, receive a higher credit rating from Fitch than banks located outside the Euro Area. Evidence for a “too-big-to-fail” and a “too-big-to-rescue” effect was also found. Research limitations/implications – The monetary union effect on banks’ credit ratings may be affected by the period under investigation. The ratings refer to August 2011, when the European sovereign debt crisis was at its height. This implies that, if anything, the Economic and Monetary Union (EMU) effect is underestimated. Practical implications – Large banks in the Euro Area receive higher credit ratings, so they have a competitive advantage over small banks located outside the Euro Area. Social implications – The present evidence suggests that small European countries with an extensive banking sector will be better off if they are member of the European EMU. Originality/value – The relationship between location of banks and their credit ratings has hardly been researched before. The present evidence is directly related to a debate in the literature on this issue.
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Silva, Célia Taborda. "Protests in Europe in Times of Crisis -The Case of Greece, Ireland and Portugal." European Journal of Social Sciences 5, no. 2 (October 1, 2022): 97–109. http://dx.doi.org/10.2478/eujss-2022-0019.
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Abstract The year 2008 was marked by a financial crisis that started in the United States but quickly spread to the rest of the world. Subprime-related, this crisis was linked to property speculation, leveraged by the banking sector. This crisis quickly spread to Europe due to exposure of European economies to international markets. To avoid economic collapse the States decided to intervene in the banking sector, nationalizing some banks and injecting capital in others. Some European countries not to enter bankruptcy had to ask for external financial support between 2010-11, was the case of Greece, Ireland and Portugal. The aid granted by the Troika (European Union, European Central Bank, International Monetary Fund) to European countries referenced advocated a drastic austerity plan. Faced with such a scenario of crisis, austerity, unemployment and precariousness, Europeans came to the streets to demonstrate their discontent with the crisis but also with politicians and policies implemented to solve the economic problems. Throughout Europe there were large protests, especially in the countries that received international aid. From a corpus taken from newspapers and from a theoretical framework of social movements we intend to verify if there was a direct relationship between crisis and contestation in the three countries that had external aid and if this crisis returned the centrality to materials on European social movements.
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Silva, Célia Taborda. "Protests in Europe in Times of Crisis -The Case of Greece, Ireland and Portugal." European Journal of Social Sciences 5, no. 2 (October 1, 2022): 97–109. http://dx.doi.org/10.2478/ejss.v1i2.p44-51.
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Abstract The year 2008 was marked by a financial crisis that started in the United States but quickly spread to the rest of the world. Subprime-related, this crisis was linked to property speculation, leveraged by the banking sector. This crisis quickly spread to Europe due to exposure of European economies to international markets. To avoid economic collapse the States decided to intervene in the banking sector, nationalizing some banks and injecting capital in others. Some European countries not to enter bankruptcy had to ask for external financial support between 2010-11, was the case of Greece, Ireland and Portugal. The aid granted by the Troika (European Union, European Central Bank, International Monetary Fund) to European countries referenced advocated a drastic austerity plan. Faced with such a scenario of crisis, austerity, unemployment and precariousness, Europeans came to the streets to demonstrate their discontent with the crisis but also with politicians and policies implemented to solve the economic problems. Throughout Europe there were large protests, especially in the countries that received international aid. From a corpus taken from newspapers and from a theoretical framework of social movements we intend to verify if there was a direct relationship between crisis and contestation in the three countries that had external aid and if this crisis returned the centrality to materials on European social movements.
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Ćurić, Predrag, Rodoljub Topić, and Bojana Vilendečić. "Banking Sector of the Republic of Serbian in Terms of Transition." ECONOMICS 4, no. 1 (June 1, 2016): 45–58. http://dx.doi.org/10.1515/eoik-2015-0028.
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Summary Privatisation of the banking sector is an inseparable part of development strategies used by the countries in transition. The process of transition and building a financial and market-oriented system is a complex and long-term task which, in addition to a variety of legal arrangements, involves also several institutional options, such as the Central Bank of Bosnia and Herzegovina, Banking Agency of the Republic of Srpska and Banja Luka Stock Exchange of Securities. The transition process of the banking sector in the Republic of Srpska was not implemented by rehabilitation of existing domestic banks, but by opening the banking system for the entry of foreign, more efficient banks. The level of trust in the banking sector grew in parallel with the process of bank privatisation and the arrival of foreign banks. Throughout the previous period, all the banks in the Republic of Srpska recorded a significant increase in the amount of deposits and loans placed, which implies the growth of investment and economic activities, therefore indicating the increase of the Republic of Srpska’s GDP in general. These are positive trends that demonstrate a decrease in the current lagging behind the European Union.
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Bazoti, Pery. "The missing European Deposit Insurance Scheme." Region & Periphery, no. 9 (July 29, 2020): 151. http://dx.doi.org/10.12681/rp.23789.
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The European Banking Union embarked as a highly ambitious project of the European Union as a response to the signifi cant fl aws and weaknesses in the original architecture of the European Monetary Union that became apparent during the economic crisis. However, the establishment of a single European banking system has stumbled upon the creation of a common deposit insurance scheme that could safeguard depositors and create a more stable fi nancial framework in the euro area. The European Deposit Insurance Scheme (EDIS) was fi rstly introduced by the European Commission in 2015. As a bold proposal that comprises wide risk mutualization among the euro area member states, it has spurred a vivid discussion in the European public speech and many proposals have been made since then altering its original planning in an effort to tackle the moral hazard concerns that have risen. The present article, after discussing the reasons that keep obstructing EDIS, presents these suggestions that move around, primarily, the role of the national deposit guarantee schemes. However, as highlighted in the article, before moving to any alterations on the structure and role of a proposed common deposit insurance scheme, signifi cant risk minimization on behalf of the national banking systems, must precede by limiting the sovereign exposures of banks and the size of the Non-Performing Loans. Such steps of risk minimization are critical for addressing concerns and the political unwillingness demonstrated by several European countries in moving forward towards deeper integration.
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Trippner, Paweł. "Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012." Management 17, no. 2 (December 1, 2013): 177–89. http://dx.doi.org/10.2478/manment-2013-0064.
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Summary Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012 The banking system is a very important element of the financial system of a country. As institutions of public trust, banks play a crucial role in the process of transforming savings into investments, which directly affects the country’s economic development. Maintaining the banking sector in a good financial condition guarantees stability of the financial system and economic development of Poland. The article aims to present the essence of operations of banks as financial institutions, present their role in the economy, and describe various methods of appraising their financial condition. In order to fulfil the above goals, a research hypothesis is put forward stating that the financial condition of the banking sector in Poland deteriorated in the analysed period as a result of an adverse impact of turbulence in financial markets and problems in banking sectors in the European Union countries.
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Dacev, Nikola. "DEVELOPMENT OF BANK ASSURANCE IN THE REPUBLIC OF MACEDONIA." KNOWLEDGE INTERNATIONAL JOURNAL 30, no. 1 (March 20, 2019): 93–98. http://dx.doi.org/10.35120/kij300193d.
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Banking has gained a new dimension throughout the world in the last few decades due to the integration of global financial markets, the development of new technologies, the universalization of banking operations and diversification into non-banking activities. The merging of various financial services has provided synergies in the banks' operations and development of new concepts. One of these concepts is bank insurance (or banc assurance). Banc assurance, as an emerging distribution channel of insurance, essentially is defined as mediation of banks in the sale of insurance policies issued by insurance companies that are most often used as additional collateral for banks when giving loans to their clients, while the clients with the purchase of credit insurance through banks are secure in case of inability to pay off the loan due to occurrence of the insured risk, whereby the insurer covers the remaining debt of the client towards the bank. Banc assurance is much more developed in Western European countries, but in recent years this type of insurance has noted a trend of growth in the less developed countries also. Banks in the Republic of Macedonia, as well as banks in other countries in the region, try to encourage the development of banc assurance, but it still has a low level of growth in comparison with the European Union member states. This paper presents the level of development of banc assurance as well as its share in the insurance market in the Republic of Macedonia by analyzing the annual reports of the Insurance Supervision Agency of the Republic of Macedonia for the past few years. Consequently, an appropriate comparison was made between the realized values of the gross written premium of the banks as intermediaries in insurance with the realized values of the gross written premium of the other insurance intermediaries (insurance brokerage companies and insurance agencies); and a brief comparison was made with the share of banc assurance in the insurance markets in several countries in the region. The purpose of the paper is to determine the reasons for the situation in which the banc assurance in the Republic of Macedonia is, to analyze the need and the possibility for its development, as well as to determine the manners for banc assurance to reach the level of development in the member states of the European Union as soon as possible. For this purpose, an adequate analysis of the level of implementation of the European Directives for banc assurance (such as the Directive on Insurance Mediation and the Directive on Insurance Distribution) in the legal framework of the Republic of Macedonia has been carried out, as well as analysis of the national legislation regulating banc assurance in the Republic of Macedonia, covered in couple of provisions in the Law on Banks and the Law on Insurance Supervision.
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Rakhmonov, A. Kh. "New sanctions of the European Union and United States against Russia and their impact on Tajikistan’s socio-economic development." UPRAVLENIE / MANAGEMENT (Russia) 10, no. 4 (January 24, 2023): 121–31. http://dx.doi.org/10.26425/2309-3633-2022-10-4-121-131.
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The article examines the socio-economic relationship between Tajikistan and Russia, the new European Union and USA sanctions against Russia and their impact on the economy and well-being of Tajikistan, and the role of Society for Worldwide Interbank Financial Telecommunication (SWIFT) in Russian and Tajik banks, including the disconnection of SWIFT from Russian banks and its impact on remittances of migrant workers in Tajikistan. Attention is paid to Tajikistan’s crisis management policy. After gaining independence, Tajikistan’s economy suffered greatly from the civil war in the republic. Russia is one of the main donors to Tajikistan’s economy. There are countries that are more connected to Russia than Tajikistan, but it is difficult to find a country that could compete with Tajikistan in terms of dependence on Russia. Almost all sectors of Tajikistan’s economy depend on Russia: Tajikistan is a donor country for migrant workers, and remittances from migrant workers play an important role in Tajikistan’s economy. Only, at the expense of money transfers of Tajik labor migrants, the banking sector of Tajikistan is supported. Over the years of independence, Tajikistan has not taken its economy out of the influence of Russia. The dependence of the Tajik economy on Russia manifested itself in the very first days of the conflict actions on the territory of Ukraine in February 2022. After the statement of Western countries on the introduction of new sanctions to restrict the access of some Russian banks to the SWIFT, the problems of the financial intermediation market of Tajikistan were exposed. An unprecedented package of sanctions by Western countries due to the situation with Ukraine has already led to a number of problems inside Tajikistan. European Union and USA sanctions against Russia have also had a strong impact on all sectors of Tajikistan’s economy, from food prices to the banking sector. The aim of the article is to assess the role of the new European Union and USA sanctions against Russia in connection with the conflict in Ukraine and their impact on the economy and welfare of Tajikistan.
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Suruchanu, A., V. Zharnikova, and O. Sobolieva-Tereshchenko. "Features of accounting and organization of labor remuneration in the field of project banking management." Galic'kij ekonomičnij visnik 68, no. 1 (2021): 77–86. http://dx.doi.org/10.33108/galicianvisnyk_tntu2021.01.077.
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The paper is devoted to the investigation of the current state and trends of the project banking management in Ukraine. It is stated and proved in this paper that project management is a separately developed area of management with its own methodology, professional knowledge, methods and tools. The average salary level of «Project manager» in Ukraine in 2020, is analyzed in this scientific paper. Comparative analysis of the above mentioned indicator with similar indicators of eleven European Union countries is carried out. It is defined that the average salary level of «Project manager» in Ukraine lags far behind the Project Management Salary in Switzerland, Germany, Netherlands, and other European Union countries. The main options for banking project implementation are systematized. It is established that for the successful implementation of any project in the bank, it is necessary to construct the effective system of remuneration for the project office. The classification of expenses in the framework of project implementation in banks is identified. It is proposed to structure the expenses in the framework of project implementation in banks into three groups: target costs, general project costs, general bank costs. The investigation results are presented in the form of tables and graphical interpretations. The options for successful implementation of banking project are revealed and several methods of the system of calculating remuneration in the form of incentives are highlighted. In order to stimulate project participants during its life cycle, the relevance of applying a piece-rate bonus system of remuneration in bank project management is substantiated. Two versions of the organization of salary payment in piece-rate bonus system of remuneration depending on the duration of the bank project are proposed. The features of accounting for payroll settlements with personnel in project banking management are highlighted, and accounting entries related to the formation of accounting information about settlements arising between project participants in banks are provided in this paper. A number of recommendations for the development of project banking management are developed.
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Barkauskaite, Aida, Ausrine Lakstutiene, and Justyna Witkowska. "Measurement of Systemic Risk in a Common European Union Risk-Based Deposit Insurance System: Formal Necessity or Value-Adding Process?" Risks 6, no. 4 (December 4, 2018): 137. http://dx.doi.org/10.3390/risks6040137.
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Scientific discussions have emphasized that the main problem with the current deposit insurance system is that the current system does not evaluate the risks that banks assume to calculate the deposit insurance premiums in many countries of the European Union (E.U.). Thus, the prevailing system does not safeguard a sufficient level of stability in the banking system. Scientific studies show that the deposit insurance system should consider not only the risk indicators for individual banks, but it must also consider the systemic risk of banks that affects the stability of the banking system. Hence, the question arises as to whether measurements of systemic risk in a common E.U. risk-based deposit insurance system are a formal necessity or if they are a value-adding process. Expanding the discussion of scientists, this article analyzes how contributions to insurance funds would change the banks of Lithuania following the introduction of the E.U.’s overall risk-based deposit insurance system and after taking into consideration the additional systemic risk. The research results that were obtained provide evidence that the introduction of a risk-based deposit insurance system would redistribute payments to the deposit insurance fund between banks operating in Lithuania, and, thereby, would contribute to a reduction in the negative effects of the deposit insurance system and would improve the stability in the financial system.
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Jemović, Mirjana, and Borko Krstić. "Comparative Analysis of Financial Stability Policy of The National Bank of Serbia and The European Central Bank." Economic Themes 53, no. 2 (June 1, 2015): 142–61. http://dx.doi.org/10.1515/ethemes-2015-0009.
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AbstractThe Republic of Serbia has successfully completed the first part in the European Union integration process, being granted candidate status for membership in the European Union (EU). The stage of accession negotiations is in progress, and it includes the full harmonization with the EU acquis, whereby the analytical review of legislation, the so-called screening is being carried out in 35 chapters. The global financial crisis that affected our country in 2008 has required a timely reaction of the National Bank of Serbia (NBS) in order to preserve the financial system stability, especially the banking sector as its most important segment. As the financial services sector adjusts within chapter 9, the aim of this paper is to assess the level of compliance of national legislation with the EU legislation regarding banking sector. Along with the regulatory initiatives in the field of preserving financial stability in the EU countries, the NBS has paid great attention to the harmonization of its financial stability policy with the financial stability policy of the European System of Central Banks (ESCB).
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Skenderi, Sibora. "Central Bank Digital Currencies: To issue, or not to issue, that is the question- Legal and Economic Implications in the EU and, the Albanian Perspective." European Journal of Accounting, Auditing and Finance Research 10, no. 8 (August 15, 2022): 56–77. http://dx.doi.org/10.37745/ejaafr.2013/vol10n85677.
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This research paper aims to serve as an added value to enrich the literature regarding the Central Banks Digital Currency and all its possible implications impacting the financial system. Our focus is on analysing CBDC from different perspectives, by analysing the motivations and concerns that lead countries with different economic conditions to introduce for their public this innovation as well as, to analyse the implications it poses due to significant fields of banking sector at whole, in terms of commercial banks, monetary policy of central bank or all the spikes that may happen in financial stability. The imminent allocation of crypto currencies has been the catalyst which has prompted Central Banks of various countries in Europe and beyond, to launch complex studies focusing on the implementation of macroeconomic policies in the context of digital currency issued by Central Banks. In prima facie overview, this process will be accompanied by various challenges, ascertained these challenges in the economic field but also in the legal one. This research paper, inter alia, aims to analyse the legal regulatory framework at the level of the European Union, taking into account the potential implications, material and procedural difficulties as well as, the economic effects that may derive from the issuance of digital currency issued by Central Banks. Along with analysation of EU legal framework in this research paper shall be analysed also the perspective of the Republic of Albania, as a candidate country for membership in the European Union which has the obligation to harmonize legislation with the aquis communiter.
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Ershov, Vitalii F. "EUROPEAN UNION FINANCIAL POLICY IN THE POST-SOVIET SPACE AT THE BEGINNING OF THE 21ST CENTURY. EXPERIENCE AND PROSPECTS." RSUH/RGGU Bulletin. Series Eurasian studies. History. Political science. International relations, no. 3 (2020): 10–28. http://dx.doi.org/10.28995/2686-7648-2020-3-10-28.
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The paper deals with the formation of a modern style of financial relations between the European Union and post-Soviet states. The author explores the objectives and features of the implementation of two main components of the European financial policy in the post-Soviet space: investment in the development and commercial activities of private capital. The EU financial policy in the post-Soviet states advances in the context of pan-European humanitarian, geopolitical and energy concepts established at the beginning of the 21st century. Despite certain differences that exist in the approaches of the European Union to dialogue with groups of countries within the frameworks of the Eastern Partnership and the EU Strategy for Central Asia, a common line is seen here on investments in promoting the education, European values, legal standards of banking. At the same time, in relations between Europe and the post-Soviet countries there is a tendency towards the adoption of the principles of financial pragmatism and a desire for long-term investment ties. The expanding role of the European banks and investment companies in economic life in the post-Soviet space is in direct connection with the realization of the modernization potential in post-Soviet states.
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Ercegovac, Roberto, Ivica Klinac, and Mario Pečarić. "The Non-Sensitivity of Public Development Banks to Key Stability Performance of the Banking Sector: The Lessons for Policymakers." Croatian Economic Survey 26, no. 1 (June 27, 2024): 37–58. http://dx.doi.org/10.15179/ces.26.1.2.
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Public development banks are mission-oriented financial institutions whose purpose is to finance investments on behalf of the policymakers. After the last global financial crisis and the changes in the regulatory framework, the lending activities of commercial banks have declined, and their business models have shown a strong pro-cyclical character. On the other hand, public development banks are gaining considerable importance in maintaining the supply of credit in the event of disruptions in the financial system. Because the activity of public development banks is policy-driven, their credit supply is not affected by the GDP rate movement. The paper not only links the credit activity of public development banks with the indicator of financial stability of commercial banking before and after the establishment of the new banking regulatory framework but also examines the quality of the loan portfolio of public development banks and the movement of the ratio of non-performing loans of the commercial banking sector. The empirical analysis was conducted on a panel sample of EU27 countries using the publicly available database of the World Bank and the Bloomberg database for the 10 largest public development banks in the European Union in the period from 2005 to 2021. A research model with dynamic panels and a systematic one-step GMM estimator was employed. The results of the research confirmed and supported the basic research hypothesis that lending by public development banks is negatively related to the stability of the banking system, which indicates the contribution of public development banks in providing access to finance during the banking system crisis. Furthermore, research results showed that public lending by development banks is not related to GDP growth. The results of the research also confirmed an additional research hypothesis that the quality of lending by public development banks is significantly inversely proportional to the share of non-performing loans in the banking system as a whole. Accordingly, it is associated with a stable business model during economic cycles, solid credit standards, disclosure obligations, and public interest monitoring to avoid adverse shocks. Finally, the research result has confirmed the positive role of European public development banks in case of an increase in the probability of banking system distress due to efficient risk management and credit standards. Its conclusion is that the policymakers need to continue to promote the importance of public development banks in contributing to policy objectives and extending financial inclusion, both during the periods of financial stability and in the periods of indications of financial uncertainties and crises.
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Prokopowicz, Dariusz. "THE PROCESSES OF CONSOLIDATION AND CONCENTRATION OF CAPITALAS IMPORTANT DETERMINANTS OF ECONOMIC GLOBALIZATION PROCESSES AFFECTING THE ECONOMIC DEVELOPMENT OF THE BANKING SYSTEM IN POLAND." International Journal of Legal Studies ( IJOLS ) 4, no. 2 (December 30, 2018): 217–44. http://dx.doi.org/10.5604/01.3001.0013.0017.
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The systemic transformation and socio-economic, which was initiated in Poland since 1989, are related with the intensified globalization processes that take place in various economic and social spheres of economy, including banking. Financial institutions as well as commercial banks are the entities which are not only subjects to theglobalization processes, they co-create these processes. The key attributes of globalization include deregulation processes, digitalization and internationalization, ie. global determinants, which were correlated with the adaptation of the financial system functioning in Poland to the European Union standards. To adjust internal procedures, product offerings and techniques of ICT operating in Poland banking to EU standards one has to consider the processes of consolidation and concentration of capital. These processes are applied in the commercial dimension of the financial system, including the banking sector since the mid-90s. Financial systemthat currently exists in Poland and includes the banking sector is among the best adapted to the EU standards. It is simultaneously one of the most globalized sectors of the economy. The key date for this issue concerns the year 2004, when Poland entered the European Union market structures. Currently, it is assumed that the process of globalization of financial markets and the banking system in Poland, apart from the consolidation processes and adjustments has been determined by such factors as administrative and supervisory goals of the central banking and supervisory bodies in the financial system and adjusting banking norms of law to the standards of Western highly developed countries.
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Vasilakopoulos, Konstantinos, Christos Tzovas, and Apostolos Ballas. "Banks’ risk and the impact of audit quality on income smoothing." Journal of Accounting and Management Information Systems 20, no. 3 (September 1, 2021): 425–53. http://dx.doi.org/10.24818/jamis.2021.03003.
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Research question: This paper investigates the impact that specific audit quality dimensions have upon European Union Banks’ income smoothing behavior. Motivation: Although previous studies have investigated the characteristics of audit quality, little is known about the audit quality in the banking sector. Excessive risk taking and business complexity may further impair auditors’ work and an audit’s outcome may be conditioned upon banks’ risk. Idea: We examine whether auditors’ independence influences bank managers’ decision to smooth income and whether this attribute depends on bank risk and systemic importance. We investigate the association between auditors’ industry specialization and auditors’ tenure with the level of Loan Loss Provisions Data: We use a sample of 133 banks from 26 European Union countries for the period 2006-2013. Tools: Similar to previous research, we use ordinary least squares analysis to test the results. Findings: Empirical findings provide evidence that the auditors’ industry expertise limits management’s discretion of high-risk banks to a greater extent relative to low risk banks. In contrast, our results imply that banks that retain the same auditor for a consecutive fiscal year are more likely to engage in income smoothing through LLPs. Furthermore, our study examines whether audit quality dimensions have different outcomes on income smoothing decisions between globally systemically important banks (GSIBs) and the rest of banks. Our results provide evidence that the impact of industry specialization and auditor tenure on EU banks accounting policy decisions differs between GSIBs and non-GSIBs. Contribution: Our analysis contributes in the existing body of research by focusing on the impact of audit quality on managements’ accounting discretion and the influence of banks’ special attributes on the audit process.
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Bobrov, A. "Transformation of the EU Monetary Policy in an Age of Financial Instability." World Economy and International Relations 66, no. 2 (2022): 33–41. http://dx.doi.org/10.20542/0131-2227-2022-66-2-33-41.
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Challenges the European economy began to face 12 years ago raised the question about actions European Central Bank (ECB) have to undertake to maintain the financial sustainability, considering its objective to ensure price stability while coping with a changed economic environment. Provision that the ECB is obliged to take efforts to ensure financial stability as well as potentially serious consequences of crisis’ impact on the banking system and industrial production, led to an expansion of its role beyond standard monetary policy measures, with the unconventional steps being taken in addition to conventional to combat the adverse impact of the financial crisis. While reducing the interest rate, ECB also provided a cheap financial capital for banks via fixed-rate “Long Term Refinancing Operations” (LTROs), and three “Covered Bond Purchase Programmes” (CBPP). Purchases of debt securities were also conducted via “Securities Market Programme” (SMP) and, later, with then ECB’s President Mario Draghi declaring that ECB will do “whatever it takes to preserve the euro”, possibility of their increase was announced with the start of “Outright Monetary Transactions” (OMT) Programme. A mere announcement of the OMT was enough to calm financial markets, as none of the eurozone countries applied for financial support within this programme’s framework. Then ECB proceeded with a full-fledged quantitative easing, starting to buy sovereign bonds under its Public Sector Purchase Programme (PSPP), having spent 2.6 trillion € on its implementation. Understanding that a monetary union without an efficient banking union is unacceptably dangerous, the European Banking Union, under which supervision of largest eurozone banks has transferred directly to the ECB, was progressively established. While ECB’s anti-crisis policies achieved their goals, prolongation of the strategy it adopted may create new risks for the financial stability of the euro area, such as excessive dependence of credit institutions on monetary support and excessive inflationary risks under a zero interest-rate policy. Still, EU institutions’ coordinated financial management played an important role in overcoming the existing turbulence, with fiscal and monetary policy measures reinforcing each other.
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Kuznichenko, Polina, Serhiy Frolov, Volodymyr Orlov, and Oleksii Boiko. "European Deposit Insurance Scheme implementation: pros and cons." Banks and Bank Systems 16, no. 1 (March 22, 2021): 116–26. http://dx.doi.org/10.21511/bbs.16(1).2021.11.
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The creation of deposit insurance systems in world practice has become a tool for solving problems of maintaining the stability of banking systems, increasing customer confidence in banks and other credit institutions, and preventing cases of mass withdrawal of deposits during economic crises. The paper aims to examine why such an important pillar of the banking union as the European Deposit Insurance Scheme (EDIS) has not yet been implemented. The deadlock in the EDIS negotiations is unprecedented, and the likelihood that the agreement towards this pillar will be reached is rather low. The main reason for its blocking is the existing differences of interests between the main actors, and as a consequence, it makes the progress towards the completion of this process impossible. This study attempts to structure these interests, and it seems that the necessary tool to help bring them together is the concept of moral hazard. The results obtained confirmed the hypothesis that the main barrier for EDIS introduction is the severe difference of interest between countries that can be potentially major contributors and those that hope to benefit from that. Moreover, one of the arguments for such a delay is that cross-border subsidization leads to the problem when the country with better economic indicators pays for the debts of weaker economies as the costs should be socialized.
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Florczak, Tomasz. "The Growing Importance of the Financial Sector in the Founding Countries of the European Union." Finanse i Prawo Finansowe 2, no. 26 (June 30, 2020): 37–49. http://dx.doi.org/10.18778/2391-6478.2.26.03.
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The economies of the 21st century countries operate on the principle of connected vessels. A significant element of changes in economies is the growth of the financial sector. The process of financial sector growth is often referred as financialization. The significant impact of this sector on economic development was shown during the financial crisis of 2008. Financialization is more visible in highly developed countries. Undoubtedly the founding countries of the European Union belong to highly developed countries. It is possible that the financialization is higher in bigger countries like France, Germany, Italy or United Kingdom, which can also have bigger financial sectors. From the other side there is also country, which economy is based on banks. The aim of the article is to indicate the growth of the financial sector in the founding countries of the European Union. To determine the growth of the financial sector, the author used the indicators appearing in the literature of subject. There are indicators relating to functioning of the economy and banking sector. The second method helps to determine in which country financialization is higher. To made the research there was used zero unitarization method. The results of the study allows to determine in which of the subjects the financial sector is at a higher level of development. It is possible, that during researched period there were changes in financializiation of researched countries.
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Klutse, Senanu Kwasi. "Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis." Review of Economic Perspectives 20, no. 4 (December 1, 2020): 431–44. http://dx.doi.org/10.2478/revecp-2020-0021.
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AbstractThe constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits.
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Puşcaşu, Ela-Andrada. "The impact of financial systems on economic growth in European Union member countries." Proceedings of the International Conference on Business Excellence 16, no. 1 (August 1, 2022): 722–31. http://dx.doi.org/10.2478/picbe-2022-0068.
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Abstract As the economy develops, self-financed capital investments are less frequent, being replaced by financing through banking intermediation and later through capital markets. The development of financial systems has a positive effect on the mobilization of resources, improving corporate governance and risk management, leading to economic growth. The preponderance of previous research papers shows a positive relationship between financial development and economic growth. Studies using cross-sectional methodologies discover almost unanimously a positive link between financial development and economic growth, while studies with methodologies based on time series, panel data or case studies reach different conclusions depending on the period considered, the countries’ initial level of development and the structure of the financial systems. The purpose of this paper is to investigate the impact of financial systems on economic growth using panel regressions based on annual data regarding measures of financial development for the member countries of the European Union, for the period 1990-2020. The findings show that the development of the financial systems, through the activity of banks and capital markets, has a positive effect on the allocation of resources, the mobilization of savings and the efficient management of risks, leading in turn to economic growth if there is a correlation between the funds invested and the output of the real sector. The paper’s contribution to the field refers to the study of the long-term relations between the financial systems and the economic growth using data for all European Union countries, the findings helping to formulate public policies.
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David, Delia, Shailendra Kumar Rai, and Luminita Paiusan. "Appreciation of the Swiss Franc and its Impact on Romania and other Central and Eastern European Countries." Studia Universitatis „Vasile Goldis” Arad – Economics Series 25, no. 4 (November 1, 2015): 11–24. http://dx.doi.org/10.1515/sues-2015-0024.
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Abstract The decision of the Swiss National Bank of giving up the fixed rate of 1,2 Euro/CHF on the 15th of January 2015, a rate established at its admission to the Monetary Economic Union, had consequences on Central and Eastern European countries because a great part of the credits granted were in Swiss francs. In all these countries, the national currencies depreciated and the financial market rates were reduced. Regional banks started to face difficulties regarding the management of the situation and were under the necessity of finding solutions to avoid the risk of not recovering the granted credits. The issue of the Swiss franc appreciation was treated differently by the analysed countries and took into consideration the particularities characteristic to the credits granted in this currency. The present paper aims at emphasising the impact of the Swiss franc appreciation on the Romanian banking system but also the approach of other countries in Central and Eastern Europe in this respect.
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Carbó-Valverde, Santiago, Harald A. Benink, Tom Berglund, and Clas Wihlborg. "Regulatory response to the financial crisis in Europe: recent developments (2010-2013)." Journal of Financial Economic Policy 7, no. 1 (April 7, 2015): 29–50. http://dx.doi.org/10.1108/jfep-11-2014-0071.
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Purpose – The purpose of this paper by the European Shadow Financial Regulatory Committee (ESFRC) is to provide an account of the financial crisis in Europe during the period 2010-2013 and an analysis of how the relevant authorities reacted to the crisis. Design/methodology/approach – These actions included measures taken by central banks, governments or fiscal authorities, and by regulatory or supervisory bodies. In a previous study covering the regulatory developments during the financial crisis up until 2009, issues such as the implementation of Basel III rules in Europe and the (mostly ad hoc and unilateral) resolution mechanisms set in most European countries to fight the crisis were covered. This study focuses on developments since 2010 with a focus on the concerns and actions that emerged with the sovereign debt crisis in the euro area. In particular, the transition from the European Financial Stability Facility to the European Stability Mechanism is assessed. The focus after 2012 has progressively turned to the challenges of the European banking union. Findings – These issues are jointly covered, along with some updates on the views of the ESFRC on recent advances in other areas, such as solvency regulation. All in all, the authors find that the weaknesses of the global financial system remain to be addressed, and they believe that the banking union is one of the main tools and opportunities for an improved and efficient crisis management in Europe. Originality/value – The paper aims at contributing to the study of financial regulation after the banking crisis. The experience of the euro zone in this context is assessed in this article from a wide range of perspectives.
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Fedorko, Igor, Radovan Bačik, and Beata Gavurova. "Effort expectancy and social influence factors as main determinants of performance expectancy using electronic banking." Banks and Bank Systems 16, no. 2 (April 28, 2021): 27–37. http://dx.doi.org/10.21511/bbs.16(2).2021.03.
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This study is aimed at determining the effect of expected effort and social influence factors on expected performance when using internet banking. The study adapts the constructs and definitions from the UTAUT model in the context of the adaptation of online banking technology. With regard to the nature of the variables analyzed, the following statistical tests and methods were used: calculation of average values using descriptive statistics; multiple linear regression analysis – to interpret associations between quantitative variables. Banks, as well as users of these banking services in the online environment, are the subject of research. The survey sample consists of 454 men and women and reflects the profile of online consumers across different countries of the European Union. The results of this study show the impact of the social influence construct on the respondents’ behavior when using electronic banking. The expected effort factor in the study significantly affects the expected performance factor, which can be characterized by original research, which showed that the effect of perceived ease of use on behavioral intent and use is incompatible with the degree of system complexity.
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Kvasničková Stanislavská, Lucie, K. Margarisová, and K. Šťastná. "Corporate Social Responsibility in banking sector." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 60, no. 2 (2012): 157–64. http://dx.doi.org/10.11118/actaun201260020157.
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After popularity increase of the concept of Corporate Social Responsibility over last century in the USA, with the 21st century the concept comes into the European Union as well, actually into Czech Republic. For the European Union, the concept of social responsibility becomes one of the tool for achieving the most competitive and dynamic knowledge-based economy (Lisbon Strategy, 2000). With the start of the financial and economic crisis, the European Commission sees in the Corporate Social Responsibility a way how to cope with the crisis. Also scientific studies (Ghoul, 2011; Gruz, 2009) indicate the positive influence of Corporate Social Responsibility on financial performance of the company. In the Czech Republic, the implementation of the concept is especially for multinational corporations. For example, Corporate Social Responsibility is very popular in financial sector, which the financial crisis did not damage so perceptible as in other countries of developed economies (Singer, 2009). This article defines on a theoretical level the concept of Corporate Social Responsibility, its development, its present form and the influence on financial performance of the company. Another part of the article focuses on three czech banking subjects (Česká spořitelna, Komerční banka a Československá obchodní banka), which regularly take the leading positions of the official corporate donors chart „TOP Filantrop“. The article explores the evolution of corporate donations and finds the connection between corporate donations and corporate profit and financial and economic crisis.
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Mielczarek, Mikołaj. "Efekty fiskalne wprowadzenia podatku bankowego w Polsce." Ekonomia 26, no. 2 (August 11, 2020): 123–43. http://dx.doi.org/10.19195/2658-1310.26.2.8.
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The article attempts to assess the fiscal effects of the introduction of a bank tax in Poland. From January 2016, a new public tax in Poland has been imposed on some financial institutions, including banks. Similar solutions are also found in some European Union countries. The aim of the article was to implement literature research and legal acts as well as empirical simulation. To accomplish the purpose of the article, literature research and legal acts, as well as empirical simulation were used. The simulation showed that the introduction of a bank tax gives beneficial fiscal effects for the state in the form of additional budget revenues. The construction of the bank tax provided for in Polish law was much more beneficial for the state than the adoption of a solution operating in another EU country. On the other hand, the introduction of a new tax is a rather unfavorable situation for the banking sector, because banks hitherto covered by income taxes and VAT have to bear an additional tax burden from 2016. For the banks themselves, the adoption of a solution found in one of the EU countries would be more favorable than the Polish solution.
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Nakonechna, Alyona. "Control in the field of banking activity: problems, prospects of development and legal regulation." Visegrad Journal on Human Rights, no. 2 (July 15, 2024): 84–90. http://dx.doi.org/10.61345/1339-7915.2024.2.15.
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The aim of the work is to study the problems of control in the field of banking. During the writing of the work, the concept, essence and content of the concept of control in the field of banking activity are studied. By working through a large number of works of scientists on this issue and using the method of comparison and analysis, ways to overcome more significant shortcomings have been identified. The most effective ways to solve the problem, which consist in the integration and differentiation of banking legislation, have been found. The process of integration of banking legislation, in our opinion, consists in carrying out high-quality work on the creation of the Banking Code of Ukraine. The mechanism for creating a banking code should include the process of systematization of banking legislation, which includes incorporation and codification. The legal regulation of banking activity in foreign countries, which is characterized by the diversity of the legal nature of the sources of banking law, a highly developed system of normative acts on banks and banking activities, the thoroughness of their legal regulation and the penetration of a foreign element into the national banking legislation, has been studied. Therefore, in connection with Ukraine’s aspiration to join the European Union, considerable attention should be paid to the legal regulation of the principles of control in the field of banking activities in the EU.
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Kravchenko, Andrii. "COMPARATIVE ANALYSIS OF THE DEVELOPMENT OF UNSECURED CONSUMER LENDING IN THE COUNTRIES OF EASTERN EUROPE." Problems and prospects of economics and management, no. 2(30) (2022): 139–50. http://dx.doi.org/10.25140/2411-5215-2022-2(30)-139-150.
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Today, unsecured consumer lending is one of the main elements of the credit market in devel-oped countries. The growth of its popularity in developed countries is due to both the increase in the volume of such loans by banking institutions and the simultaneous growth of the population's demand for unsecured consumer loans.The article analyzes and compares the indicators of the volume of unsecured consumer lending in Ukraine and Eastern European countries such as Bulgaria, Hungary, Moldova, Hungary, Poland, Romania, Slovakia and the Czech Republic. This analysis is relevant because most of the countries of Eastern Europe are fullmembers of the European Union with a developed economy and banking sys-tem. The indicators of unsecured lending of other developed countries -the USA and Germany -were also given for comparison. The total amount of unsecured consumers in the banking system and the amount of unsecured consumer loans per person were chosen as indicators for comparing countries.In addition, the article provides a definition of unsecured consumer lending. The main ad-vantages of the development of unsecured consumer lending for the growth of the country's national economy are highlighted and described. The reasons for the growing popularity of unsecured consum-er lending in developed countries were investigated and characterized.The conducted analysis made it possible to conclude that Ukraine is in the last place in terms of unsecured consumer lending in its region and significantly lags behind not only the most developed countries, but also all the countries of Eastern Europe, except for Moldova. This situation is connected both with the insufficiency of total bank assets for the expansion of unsecured consumer lending, and with the fact that any lending still remains a rather risky activity and banks are forced to set strict re-quirements for potential borrowers.
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Căpraru, Bogdan, and Iulian Ihnatov. "Determinants Of Bank’s Profitability In EU15." Annals of the Alexandru Ioan Cuza University - Economics 62, no. 1 (April 1, 2015): 93–101. http://dx.doi.org/10.1515/aicue-2015-0007.
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Abstract In this paper we analyse determinants of bank profitability of EU15 banking systems for the period 2001-2011. We use as proxy for banks profitability the return on average assets (ROAA), the return on average equity (ROAE) and net interest margin (NIM). We also measure the impact of the first and the largest wave of enlargement (10 new members in 2004) on EU15 bank profitability, introducing a dummy variable. The contribution of this paper for the empirical literature is that there are no other studies that deal bank profitability for all EU 15 countries for the period considered (2001-2011). The literature splits the factors that influence banks’ profitability in two large groups: bank-specific (internal) factors and industry specific and macroeconomic (external) factors. Our results are in line with the economic theory. Cost to Income Ratio, credit risk and market concentration had a negative influence in case of all measures of banks’ profitability, while bank liquidity only for ROAE and NIM. The size of banks had a negative impact on NIM, suggesting that bigger the bank is, smaller the net interest margin ratio is, but, on the contrary, in case of ROAA, had a direct effect. The market concentration had a negative influence, meaning that the increasing competition, as a structural point of view, increases banks’ profitability. The results show us that the process of European Union enlargement from 2004 does not have significant impact on EU15 banking systems’ profitability. It has a week and negative effect only in case of net interest margin. As policy recommendations, we suggest for authorities a better supervision for credit risk and liquidity and maintaining a competitive banking environment. For banks’ management we also recommend to monitor the credit risk indicators, optimizing costs and diversifying the sources of income.
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Blake, David. "Target2: The Silent Bailout System That Keeps the Euro Afloat." Journal of Risk and Financial Management 16, no. 12 (December 7, 2023): 506. http://dx.doi.org/10.3390/jrfm16120506.
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Target2 is the Eurozone’s cross-border payment system, which is mandatory for the settlement of euro transactions involving Eurozone central banks. It is being used to save the Eurozone from imploding. A key underlying problem is that the Eurozone does not satisfy the economic conditions for being an Optimal Currency Area, i.e., a geographical area over which a single currency and monetary policy can operate on a sustainable, long-term basis. The different business cycles in the Eurozone, combined with poor labour and capital market flexibility, mean that systematic trade surpluses and deficits will build up because inter-regional exchange rates can no longer be changed. Surplus regions need to recycle the surpluses back into deficit regions via transfers to keep the Eurozone economies in balance. But the largest surplus country—Germany—refuses to formally accept that the European Union is a ‘transfer union’. However, deficit countries, including the largest of these—Italy—are using Target2 for this purpose. Target2 has become a giant credit card for Eurozone members that import more than they export to other members, but with two differences compared with normal credit card debt: neither the debt nor the interest that accrues on the debt ever needs to be repaid. Furthermore, the size of the deficits being built up is causing citizens in deficit countries to lose confidence in their banking systems, leading them to transfer their funds to banks in surplus countries. Target2 is also being used to facilitate this capital flight. However, these are not viable long-term solutions to systemic Eurozone trade imbalances and weakening national banking systems. There are only two realistic outcomes. The first is a full fiscal and political union, with Brussels determining the levels of tax and public expenditure in each member state—which has long been the objective of Europe’s political establishment. The second outcome is that the Eurozone breaks up.