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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The motivation for this research was the need for scientific elaboration on the issues of managing the flexibility of the financial system to ensure its sustainable development. The purpose of the article is to develop a counter-cyclical approach to change management in banks for the sustainable development of the financial system. Based on data of 2020 and post-crisis economic recovery in 2021, the article reveals the positive effect of managing changes in banks in the form of sustainable development of the financial system. Alternative scenarios for managing changes in banks are compared in terms of advantages to enhance the resilience of the financial system. This serves as a justification for the fact that the contribution of banks' flexibility to this positive effect varies significantly depending on the phases of the economic cycle. The authors' SAP-LAP model has provided a qualitative interpretation of change management in banks in the context of the economic crisis to enhance the resilience of the financial system on the example of the credit services market. The theoretical impact consists in revealing the status quo that determine the flexibility of banks and their contribution to the sustainable development of the financial system. These conditions are the development of mobile money services and the expansion of ATM network, as well as specialization in the segments of the richest 60% and the poorest 40% of consumers of credit services. The practical significance of the results obtained in the article is that the developed new approach to the organization of banks' activities makes it possible to increase the flexibility of banks and thereby enhance their adaptability to the cyclical economy. [ABSTRACT FROM AUTHOR]

This research aims to obtain empirical verification regarding the effect of peer-to-peer (P2P) lending on banking credit for micro, small, and medium enterprises (MSMEs) by considering loose, according to banking standards (normal), and tight banking liquidity. Separating research samples based on different levels of liquidity is a unique and important study. This is because banking liquidity conditions can influence the behavior and decisions of banking management in determining credit distribution priorities to MSMEs or non-MSMEs, as well as being a consideration in utilizing collaboration with P2P platforms. The data utilized in this research uses panel data from January to December 2022, encompassing 33 provinces in Indonesia, resulting in a total of 396 observations. Hence, the test employs a panel data regression approach. This research shows that P2P loans do not affect MSME banking credit in Indonesian provinces with loose liquidity. In contrast, P2P lending positively affects MSME banking credit in provinces with normal and tight banking liquidity. To the best of the researcher's knowledge, this is the first study to examine the effect of P2P lending on MSME banking credit after COVID-19 involving several situations related to banking liquidity. [ABSTRACT FROM AUTHOR]

This study aims to know the existence of culture and its deconstruction in management control systems in traditional banking institutions. This research uses a mixed method with Explanatory Sequential Design by taking a traditional banking institutions in Indonesia and exploring it using interview and observation techniques at one of the traditional banking institutions to form a deconstruction of the new MCS concept. The results of this research reveal a significant influence between culture and MCS. Furthermore, a culture-based MCS deconstruction was discovered and formed, which found a kindness implemented in the Standard Operational Procedure, Assets implemented in the Work Plan, budgeting, and expenditure and a desire for its implementation through performance. Lastly is happiness, implemented in reporting and auditing. [ABSTRACT FROM AUTHOR]

This study examines the impact of the reward system on the performance of talented staff in Vietnamese commercial banks. We obtained data from a structured questionnaire distributed to 330 Vietnamese bankers. The partial least square structural equation model, which includes employee recognition programs, performance incentives, promotion opportunities, employee performance, and work satisfaction variables, is used to analyze these data. According to the findings, although performance incentives and recognition programs have no impact on an employee's performance, promotion opportunities may assist bright workers in improving their output. These elements do, however, indirectly influence the performance of talented employees via job satisfaction. This study contributes to the previous literature by concentrating on the aspect of talent management in commercial banks, instead of researching all of the employees in companies. The results offer commercial banks vital approaches for managing their brilliant personnel in today's dynamic business environment, therefore enhancing their competitiveness and productivity. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study assesses the operational efficiency of 14 Sierra Leone commercial banks from 2020 to 2022, focusing on the adoption of financial innovation, such as digital banking, mobile services, and online payments. The research evaluates banks' performance by leveraging innovations using data envelope analysis (DEA) with constant and variable returns to scale models. Findings show varied efficiency, with some banks excelling and others lagging. The study underscores the need for strategic management and optimization so that banks can benefit fully from financial innovations. The insights inform policymakers and bank managers on enhancing the sector's operational performance through technology integration. [ABSTRACT FROM AUTHOR]

This study examines the efficiency of credit allocation among various types of banks in China. Seven different varieties of Chinese banks' performance are examined from 2011 to 2021. We introduce a novel hybrid pseudo‐Malmquist–Grey–TOPSIS model that effectively addresses the need for integrating uncertainty and heuristics in relocation decision‐making. Our analysis reveals that the Joint‐Stock Commercial Bank demonstrates superior performance in terms of credit allocation efficiency. In contrast, rural commercial banks exhibit suboptimal performance when it comes to credit allocation convenience, indicating the importance of prudent credit risk management for this category of banks. It is important to note that the loan allocation performance of each bank category is primarily influenced by the distinct characteristics associated with that specific bank type. However, it is crucial to understand that the success of each bank category's frontier, regardless of its quality, should not be considered a causative determinant of the overall performance of such types of banks. [ABSTRACT FROM AUTHOR]

Effective government rules and regulations, as well as the ability of the regulator to curb corruption and promote voice and accountability, can influence the ability of bank management to allocate resources and ensure high performance. Based on this assumption, we aim to find out whether institutional quality is able to improve bank performance in Italy. To do so, we rely mainly on the diversity of banks, thus capturing the different behaviors of the two main categories, i.e. cooperative and for‐profit banks. Using a parametric method, the results show a clear impact of most dimensions of institutional quality on reducing banks' cost inefficiency. Some robustness checks, especially regarding the role of market structure, confirm our findings. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the simultaneous effect of variations in the Capital Adequacy Ratio and Credit Risk of Islamic banks of the Gulf Cooperation Council under the influence of the Basel III regulations using an innovative approach. Design/methodology/approach: This approach highlights the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021. Findings: The findings highlight the critical importance of the Basel III reform in preserving the stability of the regional and international financial sector in the Gulf Cooperation Council and globally by examining the complex dynamics between Capital Adequacy Ratio and Credit Risk and their interaction under regulatory constraints. The annual reports and financial performance of 26 Islamic banks were analyzed over the period 2013–2021. Originality/value: The insights from findings help define effective strategies to manage and mitigate Credit Risk while strengthening solvency under Basel III prudential supervision. Policymakers, regulatory authorities and banking institutions can optimize the management of Credit Risk and create a robust and stable financial environment for Islamic banks. [ABSTRACT FROM AUTHOR]

Going concern of entity is of much concern to stakeholders, especially investors of financial institutions since the failure of financial institutions affects a wide range of sectors. The study sought to develop a model to predict going concern of financial institutions. The data were collected from the financial statements of selected banks in Ghana and Nigeria. The binary logistic regression model was employed as the data analysis technique. The model used financial ratios as predictors of going concern. The result revealed that working capital and earnings before interest and tax on total assets are crucial financial predictors for going concern in financial institutions. The implication is that management should maintain adequate working capital and improve upon its earning capacity to sustain the operations of financial institutions. [ABSTRACT FROM AUTHOR]

Amidst growing financial internationalization, public banks are a reemerging mode of financial governance that can serve as a policy tool for counter-cyclical crisis financing, proactive investment (e.g. green finance), or protectionist lending. Yet no systematic studies examine what leads governments to form public banks in the first place, in part due to a lack of data. This paper introduces an original dataset, conceptual framework, and descriptive empirical insights to serve as the basis for future research. I discuss contending definitions of public banks to advance the more targeted conceptualization of 'government-initiated public banks' (G-Pubs), or banks that are formed by governments and remain under government control through ownership and/or management. The dataset includes 1,355 banks and spans 195 countries for the period 1401–2020. Using these data, I test prevailing assumptions suggesting G-Pubs are more likely to form in less developed or more autocratic countries. I show that for the period 1970–2020, G-Pub formation is instead associated with developed democracies. Descriptive analysis prior to the 1970s further supports a more complex view. These findings underscore the need for a renewed research agenda on public banking that considers both domestic and international political economic dynamics, including international diffusion, financial integration, and crisis mechanisms. [ABSTRACT FROM AUTHOR]

Banking and risk are synonymous concepts. The risk concepts for both conventional and Islamic banks are broadly similar, and liquidity risk is among the most important risks that all banks are exposed to. The management process of liquidity risk, which arises when banks do not have enough assets to meet their liabilities at maturity, may differ in conventional and Islamic banks. This study aims to present a comparative analysis of the liquidity determinants of conventional and Islamic banks operating in Turkey. Using the data of 3 Islamic and 17 conventional banks for the period between 2011Q1-2022Q2, the analysis, which also aims to see the short and long-term effects, concludes that the determinants of liquidity risk for conventional and Islamic banks are largely similar. However, the liquidity of Islamic banks is more sensitive to bank-specific variables. The findings showed that Islamic banks, which cannot use all of the conventional liquidity management tools in the liquidity management process for different reasons, have to hold higher liquid assets than conventional banks in the short term, even if they are balanced in the long term. [ABSTRACT FROM AUTHOR]

Maximising financial performance while maintaining adequate liquidity is a crucial and ongoing challenge for bank management, particularly in emerging markets. This study focuses on the relationship between capital structure and financial performance in Jordanian banks, with the mediating role of liquidity risk. Using panel data from 13 central Jordanian banks over the 2015–2022 period, we employ structural equation modelling (SEM) to analyse how capital structure ratios (equity-to-asset, debt-to-loan, and deposit-to-asset) influence financial performance metrics (return on assets and net income-to-expenditure ratio). Our findings reveal a significant positive association between capital structure and financial performance. However, liquidity risk fully mediates this effect. Capital structure primarily impacts performance by influencing a bank's liquidity risk profile. Furthermore, the strength of this mediating effect is noteworthy—capital structure exhibits a statistically more robust association with liquidity risk than its direct impact on performance. This highlights the crucial role of managing liquidity risk within the complex dynamics of bank operations. This research makes a significant contribution to the existing literature by demonstrating the positive impact of capital structure on performance using the underlying mechanism through which this effect occurs. The insights of this research provide several implications for practice in the context of banking industries. [ABSTRACT FROM AUTHOR]

This study identifies and synthesizes patterns and trends in the emerging body of literature of environmental, social, and corporate governance (ESG) endeavors on the financial performance (FP) of the banking firms. It specifically aims to highlight the relationship of ESG–FP. The scoping review analysis is based on 1856 journal articles from two online databases, namely Scopus and Web of Science (WoS) for the period of 2015 to 2023. The analysis reveals inconsistent results regarding the ESG–FP relationship, with some studies reporting positive impacts, others negative, and several showing no significant relationship. Notably, non-linear studies consistently identify an inverted U-shaped relationship, suggesting that there is a threshold level of ESG investment beyond which additional investments do not yield proportional benefits. This indicates that threshold-based policies may be more effective at maximizing ESG benefits. The study also found that numerous studies suggested exploring the indirect effect or mediating variables in the ESG–FP relationship to better explain the FP variance. Thus, the study identifies a need for future research to explore indirect relationships by testing potential moderators or mediators, particularly bank risk-taking, to better understand the ESG–FP dynamics. Policymakers and regulators should adopt non-linear analytical approaches and set threshold-based ESG investment policies, while bank management should strategically invest in ESG activities, integrating ESG considerations into risk management frameworks. Continuous monitoring and evaluation, along with stakeholder engagement, are crucial for optimizing ESG investments. By adopting these strategies, banks can enhance financial performance and contribute to sustainable and responsible banking practices. [ABSTRACT FROM AUTHOR]

We test whether organizational risk management matters to bondholders of U.S. bank holding companies (BHCs), and find that debt financing costs increase when the BHC has lower-quality risk management. Consistent with bailouts giving rise to moral hazard among bank creditors, we find that bondholders put less emphasis on risk management in large institutions for which bailouts are expected ex-ante. BHCs that maintained strong risk management before the financial crisis had lower debt costs during and after the crisis, compared to other banks. Overall, quality risk management can curtail risk exposures at BHCs and result in lower debt costs. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The failure of banks to safeguard customers' funds has become a substantial issue that has affected public impressions on social media. One of the strategies to ensure the company's reputation is performing impression management. This study aims to assess the financial performance impact of using impression management on banking's Twitter. This study collected 6712 tweets from banks listed on the Indonesia Stock Exchange in 2019. The regression shows no influence on financial performance when banks post a lot of their achievements and accomplishments. However, being a friendly bank can have a favourable impact on financial performance. Empirically, this study contributes to explaining the influence of impression management categories on social media on financial performance, implying that firms should make the most of their social media communications to manage public impressions. [ABSTRACT FROM AUTHOR]

Assessing the financial health of banks is crucial to ensure the stability of the financial system. This is not only a way to safeguard the interests of customers and shareholders but also to prevent inherent risks and ensure reliability in banking operations. Thus, evaluating financial health plays a crucial role in maintaining stability and sustainable development in the banking sector. This study employed three methods: RAM (Root Assessment Method), PSI (Preference Selection Index), and SRP (Simple Ranking Process), to assess the financial health of twenty-eight banks in Vietnam. Capital adequacy rating, asset quality rating, management rating, earnings rating, liquidity rating, and sensitivity to market risk rating are the six criteria used to characterize each bank. The evaluation results using these three methods were compared with each other and with the evaluation using the CAMELS rating system. The study identified banks with good financial health and those with weak financial health. The notable point is that the results of ranking financial health of banks using three methods: RAM, PSI, and SRP, and according to the CAMELS system are quite similar. These findings are vital in providing valuable information for managers and investors, aiding them in making informed decisions regarding investment, risk management, and development strategies based on empirical data. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Professional Business Review (JPBReview) is the property of AOS: ESTRATEGIA & INOVACAO and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates the relationship between bank competition and stability within a transitioning economy, focusing on Vietnamese banks from 2007 to 2018. Set against the backdrop of a transformative banking landscape post the collapse of the socialist bloc, the article utilises the Lerner Index to measure bank competition. The Z-score is used as a measure of bank stability. Panel fixed effects and difference GMM estimations suggest that heightened competition correlates positively with bank stability. Notably, these dynamics hold true even after omitting state-owned banks, signifying that government-controlled banks do not exclusively drive the observed relationships. Policymakers, hence, face the crucial task of balancing liberalisation efforts with safeguarding bank stability and emphasising the need for robust risk management and strong corporate governance in transitioning economies dominated by public ownership. This article thus offers valuable insights for policy refinement in similarly poised nations. [ABSTRACT FROM AUTHOR]

Conventional banks are 'indirectly' allowed to take more risk under the shadow of sovereign guarantees. Banks commit moral hazards as any major banking crisis will be 'cushioned' by deposit insurance and bailed out using the taxpayer's money. This study offers an alternative explanation for the determinants of banks' credit risk, particularly those from the Islamic regions. Although conventional banks and Islamic banks may share state and social cushioning systems, Islamic banks are strictly prohibited by moral and religious principles from gambling with depositors' funds, even if there is a cushion available to bail them out. However, banks belonging to collective societies, such as those in the MENA area, may be inclined to take more risks due to the perception of having a larger safety net to protect them in the event of failure. We analyse these theoretical intersections by utilising a dataset consisting of 320 banks from 20 countries, covering the time span from 2006 to 2021. Our analysis employs a combination of Ordinary Least Squares (OLS), Fixed Effects (FE), and 2-step System-GMM methodologies. Our analysis reveals that Islamic banks are less exposed to credit risk compared to conventional banks. We contend that the stricter ethical and moral ground and multi-layer monitoring system amid protracted geopolitical and post-pandemic crises impacting Islamic countries contribute to the lower credit risk. We examine the consequences for credit and liquidity management in Islamic banks and the risk management strategies employed by Islamic banks, which can serve as a valuable reference for other banks. [ABSTRACT FROM AUTHOR]

This study investigates the effects of the digitalization process on the job satisfaction of employees in participation banks. During the pandemic period, technological efforts that allow banking transactions to be carried out contactless and remotely have accelerated, and suitable financial products have been put into service. Participation banks have swiftly adapted to the digitalization activities observed in the banking sector, much like their counterparts. By offering digital products that adhere to Islamic principles, customers can remotely and contactlessly conduct their banking activities. This transformation has had an impact on the employees of participating banks. The study examines the effects of digitalization on the work lives of employees in participating banks through the administration of a survey. Considering the demographic characteristics of the workplace, the job satisfaction levels of employees have been measured. The effect of digitalization on the job satisfaction of employees was also measured by regression analysis. In the findings, internal and external satisfaction with digitalization were measured. According to the measurement results, it was found that digitalization positively increases the job satisfaction of employees in participation banks. [ABSTRACT FROM AUTHOR]

In developing countries, banks have been looking out for new ways to improve their performance using digital transformation. This research bases itself on critical methodology, in which, a Data Analytics Lifecycle based on the Design Thinking concept (DAL-DT) has been used to support management control systems, and propose ways to optimise employee incentives, capital budgeting, workforce planning systems, in the context of a commercial bank in Vietnam. In addition, our study also examines the organisational actors engaged in the application of DT initiatives through the social practice theoretical lens of Bourdieu, regarding habitus, capitals, and fields. The results reveal that although DAL-DT, in principle, provides effective strategic plans along with a cohesive corporate culture that supports the implementation of DT initiatives, there are some constraints to this innovative reform. For instance, the top management of commercial banks in developing nations seem to display a lack of willingness and misunderstanding of the concept of DT, add to that the lack of suitable resources coupled with over-expectations. [ABSTRACT FROM AUTHOR]

Copyright of Business Intelligence Management Studies is the property of Allameh Tabatabai University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: Continuous performance management is an emerging global phenomenon adopted by the human resources management discipline that is decentralizing the way performance management is traditionally executed within organizations. This study aims to examine the impact of continuous performance management (CPM) on turnover intention in the banking sector in Dubai and to identify the mediating roles of employee motivation and job autonomy. Design/methodology/approach: The study used surveys to collect primary data from 375 employees at 15 banks operating in Dubai to explore the relationships among CPM, employee motivation, turnover intention, as well as perceived job autonomy. Through a robust analytical methodology that included exploratory factor analysis and confirmatory factor analysis, multiple regression and parallel mediation analysis using the Hayes process macro, not only were the factor structures validated, but the relationships between the constructs were also uncovered. This comprehensive research process helped the present study delve into the depths of the study's subject matter, thereby enhancing the value of the study to the extant literature which given the multicultural orientation, further contributed to the comprehensiveness of the conceptual relationship between the variables. Findings: From the findings, the current study concludes that the key predictors of employee motivation, job autonomy and turnover intention in the banking sector among employees were CPM factors. In addition, based on the findings from the Hays process macro parallel mediation analysis, the current study identified the mediation effect of employee motivation and job autonomy between CPM and turnover intention. With the confirmation of all the research hypotheses, the output from this study is valuable to HR academicians and practitioners seeking to understand CPM and how to implement performance management drivers for the purpose of employee development and retention. Originality/value: This paper's originality lies in its examination of the burgeoning trend of CPM within the unique context of the GCC banking sector, a sector-specific focus that offers fresh insights into the adoption and impact of CPM in a regional context. [ABSTRACT FROM AUTHOR]

The purpose of this research is to investigate the future of the country’s banking management system due to the merger of banks. The research strategy in the qualitative part of the research is a library study and in the quantitative part of the research, it is a survey type. The current research in terms of practical purpose and in terms of how to collect information; it is a field. The statistical population consists of all the university and banking experts of West and East Azerbaijan province, whose number is equal to 440 people, and using Cochran’s formula, the sample size is equal to 205 people. The random sampling method is simple and in order to collect information from library resources, as well as in order to collect data and information for analysis, a questionnaire made by the researcher was used, and all analyzes were done using software SPSS software was used, which according to the results of prioritizing the opinions of the sample about the merger of banks in the future, in the banking management system of West and East Azarbaijan province, showed that the items ”culture management, stress management, human resource reconstruction, resistance to change, insecurity ”Jobs, draining talents, lack of motivation are among the challenges in merging banks in the future.” With the average (3.52) and coefficient of variation (cv=0.288), the item ”successful transfer of management depends on changing the management structure in accordance with the functional requirements after the merger and creating the necessary infrastructure based on solving the previous problems.” With the mean (3.35) and coefficient of variation (cv=0.300), the item ”In the integration process, some employees with less skill, less talent or less commitment may not be employed in the new group; ”Trying to employ them in subsidiary companies or other work environments and reducing the stress of job loss among them is another important step in managing change in bank mergers.” With the average (3.33) and coefficient of variation (cv = 0.334), respectively, they play the biggest role in the causes of bank mergers in the future. [ABSTRACT FROM AUTHOR]

Purpose: Islamic banks (IBs) place significant importance on their religious identity, prompting the utilization of impression management (IM) strategies to emphasize such identity. This paper aims to discuss the motivations behind using IM in the creation of religious identity by IBs, and to explore the use of religious symbols and language as a form of religious rhetoric. It is argued that to counteract the threats to their religious identity, IBs use IM techniques, predominantly through the inclusion of religious symbols and rhetoric. Design/methodology/approach: An empirical exploratory study, using content analysis, was conducted on the annual reports of the largest IBs for the year 2022. The analyses involved a total of 39 banks based on a filtered list from The Banker's Top Islamic Financial Institutions of 2022. A manual content analysis was undertaken to extract religious symbols, images and contents. Findings: The findings reveal the use of IM techniques that emphasize the religious identity of these banks. Notably, IBs consistently reaffirm their commitment to Sharia compliance and disclose their contributions to Zakah. In addition, the analysis reveals the incorporation of Quranic verses, religious iconographic images and other religious rhetoric statements in the annual reports of many IBs. Research limitations/implications: The analysis concludes that the assertion by IBs that their guiding principles are rooted in Islamic values are supported by the religious terminology and imagery embedded in their annual reports. Alongside mere religious symbolism, the terms and images are integral part of the corporate identity of the Islamic that not only sends persuasive signals to stakeholders but also help build an impression on the activities of the IBs. Originality/value: IM has been a key objective and strategy of companies. This study aimed at exploring whether and how IBs used religious symbolism as an integral part of IM and corporate identity. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impact of the auditor's characteristics on bank's earnings management (EM) through loan loss provisions (LLP) for African banks. Design/methodology/approach: This study is based on 360 bank-year observations from 14 African countries for the period 2011–2016, discretionary LLP is used as proxy for EM. Panel regressions have been conducted. Findings: The authors' findings reveal that auditor's industry specialization and tenure exert a negative and significant influence on the extent of LLP-based EM. The results also show that total fees paid to the banks' auditors are positively related to the extent of EM. In a further analysis, the authors find that industry specialist auditors are more effective in reducing the incoming-increasing. Similarly, the positive relationship previously found between EM and total fees still holds only for income-increasing. Moreover, auditor tenure negatively impacts both income-increasing and income-decreasing EM. As for auditor change, results reveal differential effect on EM. Originality/value: The current research extends prior literature and provides an understanding of an important external monitoring mechanism, the external audit, within African banks. To the best of the authors' knowledge, there is a paucity of cross-country studies that has addressed the influence of auditors' attributes on banks' EM in Africa. [ABSTRACT FROM AUTHOR]

We test the effect of the establishment of a risk management committee on bank risk, bank loan performance and bank profitability. The Dodd–Frank Act of 2010 provides us with quasi‐experimental variation on risk management committee establishment that facilitates identification. We identify the risk management committee effect using an instrumental variable model based on the difference‐in‐differences design. We find that the establishment of a risk committee has effectively reduced bank risks. In addition, risk committee member independence, more risk committee meetings and more risk committee members are all instrumental to bank risk reduction. We also find evidence that the risk reduction effect from the risk management committee is more pronounced among asset‐diversified banks. Finally, the establishment of a risk committee helps with loan quality improvement and firm profitability increment, which sheds light on the bright side of stringent bank regulation. [ABSTRACT FROM AUTHOR]

We investigate the effect of the 2005 US hurricane strikes on big bath earnings management in the banking industry. Using a difference-in-differences approach, we find that banks affected by the hurricanes add more discretionary loan loss provisions (DLLP) after the shock relative to unaffected banks. Further tests suggest that the hurricane-induced DLLP increase is attributable to opportunistic big bath accounting rather than to a precautionary motive. We also show that the effect of the hurricanes on big bath earnings management is more pronounced in banks that were managing earnings upwards more aggressively before the hurricanes. [ABSTRACT FROM AUTHOR]

This article examines the effectiveness of cooperation among bank supervisors using novel data on supranational agreements signed by 93 countries. Exploiting that globally operating banks are differently covered by these agreements, we show that supervisory cooperation generally improves bank stability. The magnitude of the effect is higher for smaller global banks, and when supervisors are more stringent and have access to higher quality information. We also show that actual supervisory cooperation varies across countries consistent with differences in economic costs and benefits of cooperation. This suggests that cooperation is not always desirable, despite being effective in reducing bank risk. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to identify the factors that influence the image of banks in the Polish banking sector among members of Generation Z (Gen Zers) and assess the strength of their impact. Design/methodology/approach: The methods used to achieve this purpose included a literature review and a diagnostic survey with an original questionnaire. The study employed PAPI and CAWI techniques and targeted Gen Zers with accounts at commercial and/or cooperative banks in Poland. Findings: The study identified the determinants influencing the image of banks and assessed their impact on how Gen Zers perceive banks in Poland. The findings indicate that the factors with the greatest impact on the image of banks in the Polish banking sector are security, convenience and accessibility, and technologies and innovations. Research limitations/implications: Since the research part of the paper is based on a survey study, the findings are somewhat superficial. A significant limitation preventing these findings from being generalized globally is the scope of the study, which was conducted solely among customers of the Polish banking sector. Therefore, it would be beneficial to expand the research by conducting a qualitative study, and by including it customers of banks from other countries. Practical implications: By understanding the impact of the determinants influencing the perception of banks in the Polish banking sector among Gen Zers, those responsible for managing the bank's image will be better equipped to understand the needs and expectations of the youngest generation of banking service users. This, in turn, should lead to more effective management of the bank's image among a generation that currently makes up almost one-fourth of the Polish population. Originality/value: The paper is primarily aimed at individuals in managerial positions in commercial and cooperative banks within the Polish banking sector, as well as bank image specialists. The ranking of the determinants influencing the image of banks among Gen Zers, presented in the paper, partially fills the research gap by revealing the real needs and expectations of the youngest generation of bank customers. [ABSTRACT FROM AUTHOR]

This research examines the relationship between bank branch expansion and ESG through the lens of geographical proximity. By utilizing panel data from Chinese listed firms during the 2010–2020 period, our results provide robust evidence that bank branch expansion promotes firms to fulfill ESG. Through increased bank competition and reduced distance between banks and enterprises, bank branch expansion contributes to ESG by strengthening financial support and optimizing informational efficiency. Additional analyses reveal that bank branch expansion enhances ESG in firms with financial backgrounds on boards, state-owned enterprises, firms with higher digital transformation and located in a superior legal environment. Overall, these findings reveal the influence of bank branch expansion on the non-financial behavior of firms and provide new empirical evidence for exploring the motivation for ESG. [ABSTRACT FROM AUTHOR]

Copyright of Global Journal of Economics & Business is the property of Refaad for Studies, Research & Development and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article establishes that the effective management of banking risks should be based on the relevant fundamental research on the formation of an effective mechanism for regulating financial relations in the banking sector. The purpose of the study was to substantiate the theoretical and methodological foundations of effective banking risk management and develop practical recommendations for improving its effectiveness in the context of digitalization. The study utilized various scientific methods, including financial stability indicator analysis, economic standards evaluation, financial condition coefficient calculation, and testing the CAMELS system within the digitalization context. Bank risk management is crucial for sustainable development. Studying risk management enhances the Russian banking sector's financial stability. However, risk management in stable conditions differs significantly from digitalization. In the digital era, objectives, resource availability, support, and decision-making time change. The goal becomes avoiding major performance deviations caused by risks in active and passive operations and bank activities. [ABSTRACT FROM AUTHOR]

This paper explores the multifaceted realm of artificial intelligence (AI) implementation in financial services, providing insights into its potential, challenges and best practices. Highlighting the emergence of generative AI (GenAI) as a transformative tool, the paper underscores its significant impact on productivity and revenue generation within investment banks and capital markets. Addressing inherent risks of AI adoption, the paper stresses the importance of robust governance frameworks to mitigate operational, reputational and compliance risks. Specific attention is given to the phenomenon of GenAI hallucinations and the imperative for deterministic AI models to ensure data integrity and regulatory compliance. The paper outlines four key pillars of AI's applications in financial services: predictive AI, anomaly detection AI, classification AI and GenAI. Examples highlight AI's role in risk management, fraud prevention, customer experience enhancement and internal process optimisation, underscoring its transformative potential across the industry. The paper also covers the distinction between public and private AI models, emphasising the advantages of proprietary data-driven insights in ensuring competitive advantage and regulatory compliance. Concluding with actionable insights for AI implementation, the paper advocates for a strategic approach encompassing clear vision setting, risk oversight, data privacy management, centralised data architecture and comprehensive process automation. [ABSTRACT FROM AUTHOR]

This study examines the balance sheet management governance operating model of selected failed banks from 2007, 2008, 2009 and 2023, with emphasis on the corporate governance structure in place and the position of the asset-liability committee (ALCO), and draws conclusions and recommendations for future policy. All failed sample banks exhibited near-identical governance frameworks for management and oversight of balance sheet risk: namely an ALCO that reported to the senior executive management committee, and was at least two levels, if not three levels, below board level. It is inferred that, as the ultimate responsible and accountable forum for ensuring balance sheet viability and continuing going concern of the bank, the board would benefit from being closer to the balance sheet risk management process. This implies changing the governance structure such that the ALCO is closer to the board itself, and able to provide direct comfort to the board that the bank's capital and liquidity risks are being managed appropriately. The following bank governance measures are recommended, to be imposed by regulatory fiat if necessary: • Direct delegated authority of the ALCO to manage the balance sheet, from a long-term robustness and viability perspective, directly on behalf of the board. • The ALCO to report directly to the board, rather than via the executive management committee (or as an alternative approach, changed to become a sub-committee of the board). This recognises that the asset-liability management (ALM) discipline is at least as important as, if not more important than, the 'audit' oversight function undertaken by the board audit committee. • Technical expertise at ALCO and board level that is capable of discerning the genuine capital and liquidity risk exposure position of the bank, on a medium-term forward-looking basis, at all times. [ABSTRACT FROM AUTHOR]

Climate change poses significant challenges across various sectors, particularly within the financial realm, where the stability of banking systems is paramount. Non-performing loans (NPLs), as critical indicators of financial health, may be considerably influenced by climatic factors. This study delves into the impact of climate change on NPLs within the Chinese banking sector from 2010 to 2022, focusing on the influence of greenhouse gas (GHG) emissions. Utilising a comprehensive dataset and advanced econometric models (including panel quantile regression, sensitivity analysis and balanced panel data models), this research illuminates the intricate relationship between environmental changes and financial health. The research also discovers a significant climate change impact on NPLs, with increased GHG emissions leading to varied responses among banks. This variation reflects the different risk profiles and adaptive capacities of banks to climate-related financial risks. Banks demonstrating higher adaptability to climate change exhibit lower NPL ratios, underscoring the importance of strategic risk management and proactive adaptation in the banking sector. The research significantly advances the understanding of the financial implications of climate change and the interplay of climate variables with financial stability. It offers crucial insights for policy makers and banking institutions, emphasising the need to integrate climate risk into financial decision making and develop robust climate-resilient strategies for the banking sector's protection. In conclusion, the study enriches the discourse on the financial impacts of climate change and serves as an informative guide for stakeholders in navigating and addressing these emerging challenges. It underscores the necessity of embedding environmental considerations within banking practices to promote a resilient and sustainable financial system in the face of environmental uncertainties. [ABSTRACT FROM AUTHOR]

Nature is undergoing a rapid decline, due to factors such as changes in land use, climate change and pollution, potentially leading to the sixth mass extinction of species. This process jeopardises ecosystem services and therewith the global economy. Over half of the global economy relies on nature and its degradation can affect supply chains, weather patterns, commodity prices and economic growth prospects. This paper finds that nature-related risks are in fact financial risks and offers empirical evidence that these risks are priced in corporate bonds, a relevant asset class for central banks. In light of this, central banks can acknowledge and evaluate the impact and dependency of their operations on nature, incorporating these considerations into their risk management framework, encompassing identification, assessment, mitigation and disclosure. This will help to ensure price stability and sustainable development, while enabling them to safeguard their balance sheets. The guidelines provided by this paper extend to other financial institutions, underscoring the need for a holistic approach to the challenges posed by nature loss. [ABSTRACT FROM AUTHOR]

This study investigated the impact of audit committee characteristics on earnings management based on data collected from the annual reports of banks operating in Dubai from 2010 to 2022. The audit committee's independence and the number of members had a statistically significant effect on earnings management. Nevertheless, auditor reputation, gender, financial expertise, time commitment, and the number of meetings insignificantly affected earnings management. The implications of this study benefit both business leaders and investors, who aim to observe the actual state of their company's finances by strengthening the auditing process. [ABSTRACT FROM AUTHOR]

This study explored the impacts of ownership structure (OS) on intellectual capital (IC) and its components. Data were gathered from 31 Dhaka Stock Exchange-listed banks for five years, from 2017 to 2021, consisting of 155 observations as balanced panel data. The study used the modified value-added intellectual coefficient (MVAIC) model to track the IC efficiency. The robust fixed effects model was employed for regression analysis to test the hypotheses. The research found that sponsor director ownership is negatively associated with the MVAIC, human capital efficiency (HCE), and structural capital efficiency (SCE) but positively with relational capital efficiency (RCE). High institutional and public ownership are positively linked with SCE but negatively with RCE. Foreign ownership is only positively associated with banks' MVAIC and HCE. The regression results showed that high institutional ownership (IO) significantly enhanced the MVAIC and HCE. Foreign and public ownership positively influenced banks' MVAIC, HCE, and capital employed efficiency (CEE) but negatively impacted RCE. The findings of this study will help banks' policymakers with ownership mixes for the optimum utilization of banks' resources. Management may assess IC's efficiency level for proper supervision and use of knowledge resources to boost bank profitability. Also, the findings will help investors make prudent investment decisions. This is the first study to focus on OS and IC with diverse elements in Southeast Asia, especially Bangladesh, an emerging market. [ABSTRACT FROM AUTHOR]

Major banks around the world lost nearly $210 billion during the period of 2011–2016 due to operational risk events. To mitigate the severe consequences that can arise from such events, the Basel Regulatory Committee has mandated that financial institutions worldwide conduct inspections on operational risk. In light of the importance of operational risk and its current regulation in the industry, this paper proposes a continuous-time principal-agent model that explores the optimal inspection policy of a financial firm (principal) and the effort of its employees (agent) to reduce the occurrence of risk events. First, we characterize the optimal inspection strategy under two commonly used policies in practice, namely random and periodic policies. This characterization reveals the conditions for two different modes of inspection (effort inducement and error correction), as well as the nuanced interactions among the inspection frequency, the penalty charged for errors, and the wage paid to employees. Next, by comparing random and periodic policies, we find that the random policy outperforms the periodic policy if and only if the inspection cost is high. Furthermore, we propose a hybrid policy that strictly dominates the random policy and weakly dominates the periodic policy, suggesting that a proper reduction of the random element in the inspection policy, in the manner of our proposed hybrid policy, can always improve its performance. Finally, we examine the complete information benchmark (without moral hazard), supplemental mitigation strategies, and numerical studies to provide further insights and show the robustness of our main findings. This paper was accepted by Vishal Gaur, operations management. Supplemental Material: The e-companion is available at https://doi.org/10.1287/mnsc.2021.00322. [ABSTRACT FROM AUTHOR]

The NPAs are considered as an important parameter to judge the performance and financial health of banks. The level of NPAs is one of the drivers of financial stability and growth of the banking sector. This research explores an empirical approach to the analysis of Non-Performing Assets (NPAs) with special reference to different banks. NPAs adversely affect lending activity of banks as non-recovery of loan instalments as also interest on loan portfolio. Non - recovery of loans also hurts the profit ability of banks. The outcome of the study would help the concerned more particularly the managers of banks to device appropriate management strategies to have NPA within the manageable limit to keep the performance of the banks in a healthier condition. To analyse and minimize the risk involved in different sectors of NPA. [ABSTRACT FROM AUTHOR]

The study concentrated on how organizational commitment mediates the relationships between employee relationship management and bank performance in selected commercial banks in Ethiopia, with organizational commitment playing a mediating role. The theoretical and empirical review of related literature has been used to construct the hypotheses and frame the study variables. Simple random sampling, purposive sampling, and multistage sampling techniques were used to select 336 samples from selected branches of commercial banks operating in two regions of Ethiopia: in Gambella town of Gambella region and Jimma town of the Oromia region. Questionnaires, interviews, and observation were used to collect data, and the Structural Equation Modeling was mainly used to see the relationship between employee relationship management and organizational performance moderated by organizational commitment using AMOS software. The result indicated that employee relationship management has a positive relationship with organizational performance, with organizational commitment playing a moderating role. The effect of employee relationship management on bank performance in Ethiopia is shown to be insufficient without organizational commitment as a moderating role. As a result, Ethiopian policymakers are advised to take into account both the employees' dedication and relationship management to enhance the performance of commercial banks in Ethiopia. This outcome is believed to be explainable in terms of the Human Capital Theory and the Human Relations Approach. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study examines the determinants of customer adoption of Islamic banking in Turkey. Design/methodology/approach: This study gathered sample data from 409 participants determined using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM) is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally, this study performed both descriptive and inferential analysis to understand customer literacy about Islamic banking and their adoption behavior of Islamic banking. Findings: The results obtained from descriptive assessment indicate that Turkish customers of Islamic banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management, Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial system. Research limitations/implications: This study focuses only on the level of knowledge and perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and financial institutions. Originality/value: Previous studies on Islamic banking are mostly studies that investigate customers' perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies examining the relationship between individuals' Islamic financial literacy level and Islamic banking preferences are limited. This study is considered to be an original study as it investigates the relationship between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in Turkey. [ABSTRACT FROM AUTHOR]

Fulfilling the international considerations of environment, societal, and governance challenges, the financial industry, especially banks, has initiated "Go Green" practices to help sustain the environment and enhance "banking" across the globe. Amidst the green and climate-friendly drives, there is scarce literature highlighting the banks' green practices, environmental awareness, and their effects on bank reputation, especially the reputation of Islamic banks. This study aims to investigate the green banking practices of Islamic banks in a developing Islamic country. Focusing on the greening ambitions of banks, this study argues that the reputation of Islamic banks can be better enhanced through adopting green banking initiatives that will beget better climatic outcomes in Muslim societies. Therefore, the study illumes green banking practices and their impact on the reputation of Islamic banks in Pakistan. Moreover, this study checks the moderation effect of employees' environmental awareness on banks' reputation. The study used deductive rationale and quantified the employees' data to unravel their go-green perceptions and bank green activities. In this regard, the 390 response data, collected through a survey from the employees of Islamic banks, were analyzed through Smart-PLS, using structural equation modeling technique. The study finds that banks' employees-related practices (ERPs), daily operations-related practices (DORPs), customers-related practices (CRPs), and banks' policy-related practices (PRPs) have a significant positive influence on bank reputation. The authors also find that there is a significant moderating impact of environmental awareness between the relationships of ERPs, DORPs, CRPs, PRPs, and bank reputation. The study might increase understating and enlighten regulators and bank management to sustainably transform their operations to green banking practices, particularly adding to the environmental sustainability in Pakistan. [ABSTRACT FROM AUTHOR]