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The present study aimed at studying the recycling of shredded currency waste of The Egyptian Central Bank, ECB, in the form of good-quality products. The techniques used include soaking with chemicals, screening to separate the detached ink particles from the soaking step, pulping at high temperature, screening to separate large nylon pieces and small ink particles, flotation to separate large ink particles and small pieces of nylon and bleaching as the final step to increase the whiteness of the product. [ABSTRACT FROM AUTHOR]

The Continental Congress foray into printed money during the American Revolution was so disastrous that the United States printed no more money for nearly a century, the one exception being a brief period during the War of 1812. After that Congress chartered and unchartered its national bank twice. The American economy henceforth (1816–1836) was often structurally short of coins, and without any national coinage Americans had to find substitute forms of currency to finance the burgeoning economy. The Supreme Court ruled that sovereign States and individuals could authorize both State and private banks to issue their own notes. In consequence, nearly all paper money in circulation was either State or private banknotes based on a limited reserve of gold. This generally proved insufficient to adequately fund major infrastructure projects. The federal government also had no institution for raising or transferring large amounts of money to fund these national improvements. Nonetheless, Hamilton's U.S. Bank, without the help of a national currency, was an institutional precursor for what would not take final form until 1913. There would be no Federal Reserve today without the Whig-Republican agenda institutionally incarnated in the First and Second U.S. Bank. [ABSTRACT FROM AUTHOR]

After over a decade of crisis, the ECB's functions have expanded considerably, which in turn altered its relationship with other institutions. In particular, when the ECB assumed the role of Banking Supervisor under the Single Supervisory Mechanisms, it was generally accepted that this role would require more accountability than its traditional role in monetary policy. Yet, accountability requires transparency. However, there is a dearth of studies on the transparency of European banking supervision, and the few that exist are usually single case studies. This leaves us without a point of comparison that would help us understand what constitutes a 'transparent banking supervisor'. Therefore, the aim of this article is to situate the transparency of the ECB within the wider literature on the transparency of banking supervisors. This allows us to pinpoint more precisely its strengths and shortcomings and the potential for reforms. [ABSTRACT FROM AUTHOR]

This article looks at the controversy which emerged between the Bank of England and a number of external actors over various proposals to modify the printing of the Bank's paper-money during the Bank restriction period of 1797–1821. As a result of this controversy, the debate over the best method to prevent the forgery of the Bank's paper-money became increasingly technical and specialised over the Restriction period. I argue that, as a result of the growing technical nature of the controversy that emerged, the problem of the forgery of the Bank's paper-money became depoliticised – separated from the controversial political and social context that attended the widespread introduction of paper-money in early nineteenth-century British society. [ABSTRACT FROM AUTHOR]

Archives in financial institutions can often appear detached from reality, less relevant in reporting political facts and the documents mostly reveal redundant financial details. Yet financial institutions hold reliable primary information and their files contain insights of international historical relevance. Through the analysis of documents kept at the historical archive of the the Italian Bank for China (now in Archivio Storico UniCredit) it is possible to contextualize the bank's activity in the first half of the twentieth century in relation to historical facts of the first republic, China. In this article, the author unveils how the Banca Italiana per la Cina was involved in financial and political events concerning the Chinese and Italian governments. In the documents and correspondence written by the bank's management the facts are described with real perception of the situations. They reveal, using reliable sources, significant aspects regarding Sino-Italian relations during that historical period. [ABSTRACT FROM AUTHOR]

Before the global financial crisis, the assistance of the lender of last resort was thought to be limited to commercial banks. During the crisis, however, the Federal Reserve created a number of facilities to support brokers and dealers, money market mutual funds, the commercial paper market, the mortgage-backed securities market, the triparty repo market, and so on. In this paper, we argue that the elimination of specialized banking through the eventual repeal of the Glass-Steagall Act (GSA) has played an important role in the leakage of the public subsidy intended for commercial banks to nonbank financial institutions. In a specialized financial system, which the GSA had helped to create, the use of the lender-of-last-resort safety net could be more comfortably limited to commercial banks. However, the elimination of GSA restrictions on bank-permissible activities has contributed to the rise of a financial system where the lines between regulated and protected banks and the so-called shadow banking system have become blurred. The existence of shadow banking, which is directly or indirectly guaranteed by banks, has made it practically impossible to confine the safety to the regulated banking system. In this context, reforming the lender-of-last-resort institution requires fundamental changes within the financial system itself. [ABSTRACT FROM AUTHOR]

With the rapid diffusion of the Internet worldwide, there has been considerable interest in the e-potentials of developing countries giving rise to a first generation of e-readiness studies. Moreover, e-readiness means different things to different people, in different contexts, and for different purposes. Despite strong merits, this first generation of e-readiness studies assumed a fixed, one-size-fits-all set of requirements, regardless of the characteristics of individual countries, the investment context, or the demands of specific applications. This feature obscures critical information for investors or policy analysts seeking to reduce uncertainties and make educated decisions. But there is very little known about e-readiness for e-banking. In particular, based on lessons learned to date and their implications for emerging realities of the 21st century, the authors designed and executed a research project with theoretical as well as practical dimensions to answer the question of “e-Readiness for What?,” focusing specifically on e-banking, based on the very assumption that one size can seldom, if ever, fit all. The authors also propose and develop a conceptual framework for the “next generation” e-readiness—focusing on different e-business applications in different economic contexts with potentially different pathways—as well as a data model—to explore e-readiness for e-banking in 10 countries. © 2005 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

The aim of this to study is to examine how non-performing loans on the balance sheets of Japanese banks affect their performance by adopting a material balance principle. The paper outlines how the material balance conditions can be applied when modelling banks' production process in the presence of non-performing loans. The paper utilizes the generalized weak G-disposability principle which accounts for the heterogeneity among banks' input quality. We test how an input-oriented model (non-performing loans are treated as an input), the weak disposability assumption and the adopted material balance approach, affect banks' performance levels. We apply our test on a sample of Japanese banks over the period 2013 to 2019. Our findings indicate that the input-oriented model and the material balance estimator even if they present similar distributions, they account differently the effect of non-performing loans' fluctuations over the examined period. In addition, the results under the weak disposability assumption are found to be different compared to the material balance measures and less sensitive to banks' non-performing loans variation levels. We also provide evidence that the generalized weak G-disposability assumption captures better banks' performance fluctuations that has been caused by the restructuring of the Japanese banking industry. [ABSTRACT FROM AUTHOR]

This article examines the epistemology of risk assessment in the context of financial modelling for the purposes of making loan underwriting decisions. A financing request for a company in the paper and pulp industry is considered in some detail. The paper and pulp industry was chosen because (1) it is subject to some specific risks that have been identified and studied by bankers, investors and managers of paper and pulp companies and (2) certain features of the industry enable analysts to quantify the impact of specific risk events of a given dimension on a company's future financial performance. While companies in other industries may be subject to similar risk factors, the impact of risk events may be more difficult to gauge in those industries. The ability of financial analysts to model the impact of a risk event, and hence quantify a credit risk, increases the predictive accuracy of the model. I argue that bankers and regulators should recognise the uncertainty associated with unquantifiable credit risk in financial models, and they should view this uncertainty as a credit risk factor in and of itself. Evaluating the relative degree to which credit risk is quantifiable in financial models is a potentially significant yet largely unrecognised tool for credit risk management. I consider some possible applications of this assessment tool for managing risk within the banking industry. [ABSTRACT FROM PUBLISHER]

The article reviews the report "From the Universal Bank to the Universal Bank: A Reappraisal," by Giandomenico Piluso in this issue of the journal.

The article presents summaries of papers of Business History Seminar. The Business History Seminar organized by Dr. Oddy met on 8 May 1981 in the Board Room of the Polytechnic of Central London. Dr. Charles Munn's paper, "Bank Finance for Industry: Scotland and Ireland 1820-1850" was concerned with the volume and techniques of lending by Scottish and Irish joint-stock banks in their formative years compared with their predecessors. In the 1820s and 1830s long established banking systems in the two countries gave way to systems of joint-stock banks and the average site of bank was larger than the English equivalent. The changing structures in the banking systems had implications for the ways in which they did business. Larger advances led the banks to look for more tangible forms of security than the traditional personal guarantee. Lending on the security of shares, property, goods, life assurance policies and ships became common but the banks struggled long and hard to find ways of obtaining effective security over these items. Acceptance finance and lending by means of unsecured overdraft also became common at this time.

Central bank communication plays a crucial role in the conduct of monetary policy, yet the research on central bank communication, while growing, is still scarce. In this paper, we analyze the communication reaction function of the European Central Bank (ECB) through topic-based indices derived from the bank's speeches. These indices are used as dependent variables in policy and communication reaction function models, as suggested by recent literature. The topics are extracted using Latent Dirichlet Allocation (LDA), a popular text mining algorithm for topic extraction. The ECB has recently reviewed its monetary policy strategy, which led to an increase in studies incorporating the new methods offered by text mining for analyzing the policy reaction function of the bank. We show how indices built through topic modelling can be used to study the communication reaction function of a central bank, and we examine which variables are significant for every topic communicated by the ECB. [ABSTRACT FROM AUTHOR]

Between 1862 and 1878, the view of the United States government towards the nation's money was transformed. Early in the Civil War, the government got into the bank note printing business out of necessity, printing and issuing the first-ever federal currency. Over the following years, debates raged whether the national currency should be printed privately or by the government's bank note printer, the United States Bureau of Engraving and Printing (BEP). Matters came to a head in 1878 when Congress debated the future of the BEP. That year, in a radical departure from the past, Congress gave the Bureau of Engraving and Printing a monopoly on the production of currency, forever changing the role of the government in the nation's economy. Money, be it in the form of coin or currency, was now the exclusive province of the government – not private banks or bank note companies. This change was the result of a rare consensus between Democrats and Republicans and between the forces of the antimonopoly tradition, Greenbackism, and hard money. For various reasons, they were unanimous in believing that the government, especially Congress, should be in control of those matters affecting the monetary affairs of the country. [ABSTRACT FROM PUBLISHER]

In this paper, we explore how asset returns used as a proxy to detect interconnectedness of systemic risk in the financial system. Our sample employs a mixture of Indonesian banks' public and prudential data over the 2012–2019 period. Using the Principal Component Analysis and Granger causality the core banks in the network could explain the variance, risk co-movement, and show shocks propagation. Further, the results are also in line with Basel indicator-based to score the interconnectedness. The dominance of big size banks in the centrality measures raises issue of substitutability. This paper outstretched theories and their application provides a basis for policy makers to develop supervision frameworks to mitigate systemic risk. [ABSTRACT FROM AUTHOR]

In this paper, we attempt to study the effectiveness of various simple machine learning methods in the prediction of bank failures. From a raw dataset of 10,938 US banks during the period of 2000–2020, we find that machine learning approaches do not really outperform the benchmark of conventional statistical method, logistic regression. However, using PCA to retain relevant variance in variables significantly improve the performance of machine learning methods and raise the out-of-sample accuracy of those method to over 70% to over 80%. Of all the machine learning methods used in this paper, the simple KNN seems to be the best model in forecasting bank failure in the United States. [ABSTRACT FROM AUTHOR]

This paper identifies the need for a pedagogical re-orientation in UK higher education to prepare graduates to overcome wicked problems. In addition to key knowledge sets, graduates need attributes of critical self-reflection, risk-awareness and management, collaboration, creativity, agility, reflexivity – enabling the ability to manage the unknown. In response, researchers have acknowledged the importance of pedagogies that are risk-oriented, creative, and reflective to remedy modernist banking methods. This paper acknowledges that while such pedagogies are underutilised, an antagonistic dichotomy between modernist banking methods (bad) and enquiry and risk-oriented approaches (good) is unhelpful as both approaches are necessary. This paper develops a metamodern framework to guide pedagogic practices to facilitate a disposition among learning strategists and practitioners which embraces oscillation between banking and radical pedagogic approaches. In turn this enables the development of student sensibilities, empowering them to challenge the growing wickedness with which they must do battle. [ABSTRACT FROM AUTHOR]

In this paper an attempt is made to calculate the profit rate of the banking sector in the period following the 2007–2008 financial crisis, in order to compare it with that of other real productive sectors. Various techniques are used, highlighting the differences between the results of national accounts data—on which the GDP calculation is based—and those of the central bank. This paper studies the problem of this difference on Italian data and offers a possible explanation, which confirms some analysis (Banque de France on French data) related to an earlier period. The second step in the analysis is directed at comparing bank profit rate and the productive profit rate. The result is that the bank profit rate has been surprisingly low in recent years, due to a decrease in net interest income, an increase in capital and an increase in non-performing loans. However, since 2021, bank profitability has improved greatly, thanks in part to institutional interventions. [ABSTRACT FROM AUTHOR]

Discusses the paper by Anil K. Kashyap on the financial crisis of Japan as of December 2002. Role of macroeconomics in the financial crisis; Problems in the banking sector; Analysis of the cost of recapitalization.

Focusing on Asian economies over the period 2006 to 2019, we find that while non-bank finance appears to complement rather than substitute credit provision by the traditional banking sector, weaker regulatory quality is an important driving factor. Moreover, while we find that central bank policy rates countercyclically affect credit provision by non-banks, impulse responses to monetary policy shocks with and without non-bank finance indicate that the effectiveness of monetary policy as a transmission channel to GDP growth, inflation, house prices, and traditional bank credit is weakened in the presence of non-bank finance. Our paper has implications for monetary policy implementation, potentially incorporating non-banks into central bank operations and liquidity provision, as well as for financial supervisors on mitigating regulatory arbitrage. [ABSTRACT FROM AUTHOR]

The present paper explores both the direct and indirect impact of ICT diffusion through the channel of digital finance on two development indicators such as poverty and income inequality at the sub-national level in India. Ordered probit estimation confirms that ICT diffusion directly reduces the persistence of poverty in both urban and rural areas. The application of ICT in the banking sector in the form of digital finance has a positive role in rural-urban poverty reduction. ICT has no direct impact on income inequality, though financial inclusion has a positive influence on both rural and urban inequality. ICT diffusion in the banking sector dampens the positive impact of financial inclusion on urban inequality with no impact on rural inequality. Proposed policy prescription can be strengthening of ICT infrastructure with wider and uniform spread of digital finance among rural and urban population so that more people can take advantage of it. [ABSTRACT FROM AUTHOR]

The paper uses a series of focus discussion groups to examine the circumstances under which consumers of financial services perceive a benefit from having a banking relationship. Specifically, it attempts to understand what motivates consumers to form relationships with banks and to what extent this is determined by the decision making environment. To achieve this objective the paper draws upon the interaction and relationship marketing literature and examines banker-customer interactions when purchasing a range of financial services. The importance of the paper stems from the fact that it sheds light on the interaction mode and increased customer participation and, therefore, examines the opportunities for marketing, enhancing quality, and improving customer retention. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of the geographic concentration of branch networks on bank profitability in Switzerland. Leveraging Switzerland's distinctive federalist fiscal structure, where communes set their own income tax rates, we also explore whether the tax burden of branch locations moderates this relationship. Using a hand-collected dataset of branch networks of commercial banks, we find that geographic branch network concentration positively affects bank profitability but only when banks concentrate their branches in low-tax communes. This suggests that the proximity to wealthy clients, who are more likely to reside in low-tax areas, enhances bank profitability. [ABSTRACT FROM AUTHOR]

This paper builds a new dataset on bank ownership and finds no evidence of a negative correlation between state-ownership of banks and economic growth. Banking crises predict increases in state-ownership but that there is no evidence that high state-ownership predicts banking crises. Contrary to past literature, the paper also shows that recent data show no difference between the profitability of private and public banks located in emerging and developing economies. The paper corroborates the existing literature which shows that in emerging and developing economies lending by state-owned banks is less procyclical than private bank lending. [ABSTRACT FROM AUTHOR]

Central banks and finance ministries have been faced with growing calls for better monetary-fiscal coordination in recent years as the solution to an array of macroeconomic policy problems, promoted by an ever-wider range of stakeholders. Yet, how can the silver-bullet solution of coordination be expected to play out across very different political-economic contexts? This paper sheds light on this question by introducing a novel typology of monetary-fiscal coordination that can help us make sense of formal and informal coordination efforts in the post-2008 era. It zooms in on a peculiar but key aspect which monetary and fiscal authorities have sought to achieve coordination on: The fiscal backing of central banks' balance sheets to insure monetary policy against losses and 'insolvency'. To understand central bankers' aversion towards loss-making despite their ability to create currency, the paper develops a political economy account which emphasizes policy-makers' interpretations of their own independence and their desire for fiscal protection, in contrast to traditional accounts of delegation that treat independent agents as discretion-seekers and power-maximizers. The typology is illustrated with case studies of the European Central Bank, Bank of England, and Bank of Japan between 2008 and 2023, each representing a different type of monetary-fiscal coordination post-crisis. [ABSTRACT FROM AUTHOR]

After Russia's massive Cyber-attacks on Ukraine's government and bank sectors in January–February 2022, many analysts alleged that Cyber-power would be a crucial component of Russia's military victory in Ukraine. Contrary to these expectations, however, Russian Cyber-intrusions yielded meagre strategic benefits, with Moscow seemingly prioritising conventional warfare and destruction of energy and civilian infrastructure instead. Using a theory of asymmetric conflict, this paper argues, somewhat counterintuitively, that the reason behind inhibited efficacy of Russian Cyber-operations post-2022 are Moscow's prior Cyber-attacks against Ukraine since 2013. While having helped the Kremlin weaken Ukraine's Cyber-networks and collect local intelligence, these antecedent Cyber-operations have provided a two-pronged learning loop: for Ukraine to cultivate habits of mitigating Russian Cyber-threats, and for Russia to acquire habits of relying on information operations more than on destructive Cyber-attacks. This "pedagogical" mechanism ultimately enabled Ukraine to redress its Cyber-asymmetry with Russia and deny Moscow success in its Cyber-intrusions post-2022. [ABSTRACT FROM AUTHOR]

The literature on the effects of bank market power on access to credit has produced many results that are sometimes contradictory. Yet, all of these studies are based on unconsolidated data that ignore the national market power of banking groups. This results in an underestimation bias that this paper proposes to correct. Using a panel of more than 55,000 French firms covering the period 2006–2017, I consider a set of structural and non-structural measures of bank market power both at the unconsolidated and consolidated levels. My results strongly support the market power hypothesis which emphasizes the virtues of competition on interest rate setting. I find that bank market power increases the interest rate charged, but only when using my consolidated measures. This effect is stronger for small and risky firms and is concentrated on long-term loans. My findings highlight the need to take into account the capital linkages of subsidiaries within the same banking group in order to fully assess the implications of bank market power. [ABSTRACT FROM AUTHOR]

Since the Global Financial Crisis in 2007, a domino of banking distress episodes took place around the world, both at individual and systemic level. The bailout cost of these banking crises was extreme, especially in USA and EU countries, which were mostly affected. In recent years, there are many empirical studies, which attempt to develop a new mechanism of Early Warnings. As a result, more integrated and accurate systems are developed. Concerning the selection of the appropriate method, multivariate logit analysis is arguably one of the most popular models for EWSs. An important methodological issue, regarding the application of binary logit models, is how to deal with the observations following the onset of a banking crisis. One can either treat years after crisis as tranquil periods or remove them from the sample. In this paper, a multinomial logit model is applied to include all the crisis observations in the sample, treating them as a different outcome. Subsequently, this paper compares the predictive ability of binomial and multinomial logit models as EWSs for systemic banking crises in Eurozone, and, contrary to previous results, multinomial logit model does not seem to perform well to signal systemic banking crises. [ABSTRACT FROM AUTHOR]

A comment on the previously published paper 'Pricing of card payment services in Scandinavian banking' has been written by Leo Van Hove and published in this issue of The Service Industries Journal; it suggests alternative analytical approaches and other implications of the results. This reply develops the study further, providing new presentations of the empirical data and discussing its conclusions. The suggestions and approaches provided by Van Hove do not change the conclusions drawn in the paper, and in-depth implications of the results in a wider context are outside the scope of the paper. However, this reply proposes further empirical studies regarding the pricing of card payment services. [ABSTRACT FROM AUTHOR]

Mobile banking has emerged as most popular mode of electronic banking in Kenya and people prefer to use it due to ease and convenience. Though mobile transactions are preferred by a large section of people, plastic cards are still widely used and account for a significant portion of banking transactions. This paper explores the evolution of mobile banking despite the existence of different e-banking services and the reasons for the quick adoption of mobile banking by Kenyan society. The paper also analyzes whether there is any association between plastic cards and mobile banking transactions in the country. The log-log regression technique has been used to establish a relationship between plastic cards and mobile transactions and, on the basis of results, the study recommends that commercial banks should try to popularize mobile banking among existing plastic card users. This move will not only give competitive advantage to banks but will also promote higher penetration on account of its easiness to use and quick acceptability among new users. Moreover, as there is a dearth of studies that associate mobile banking and plastic cards in Kenya, this work will add to the existing body of knowledge in the literature. [ABSTRACT FROM AUTHOR]

In the last few decades, most of the emerging market economies (EMEs) have adopted financial liberalization. Evidence shows that the financial sectors/institutions in emerging economies were either underdeveloped or functioning with a lot of inefficiencies under inadequate regulation. The paper examines whether liberalization in the financial sector has led to financial development for a bunch of EMEs including BRICS. The paper differs from the existing literature in its approach of dealing with the measurements of financial development and considering financial liberalization as a gradual process. Panel regressions are estimated for 9 countries based on 22 years' data for four aspects of financial development, viz. depth, efficiency, stability and competition. Results indicate that financial liberalization in terms of freedom in capital markets has a positive effect on financial depth and competition, whereas liberalization from government interference in the banks and other financial institutions has a positive impact on the stability of the financial sector. Trade openness has a role in enhancing the efficiency of the financial sector. Also, evidence suggests that capital account openness leads to increased depth and does not destabilize the financial sector. GDP, political stability, regulatory quality and government effectiveness are also important factors in influencing more than one aspect of financial development in a country. [ABSTRACT FROM AUTHOR]

Recent financial upheavals and economic downturns have triggered and sped up the research on financial distress in general and in the Banking industry in specific. The current review attempts to gauge and map performance trends and intellectual knowledge structure of the financial distress research in the banking industry. A hybrid approach was adopted to inventorize, analyse and evaluate the financial distress literature pertaining to the banking industry (1982–2022); the authors apply bibliometric analysis to identify critical financial distress literature articles and journals, followed by the identification of central financial distress literature research themes through co-citation analysis. We found that financial distress researchers have published 11 papers each year since 1982, and the number of citations received by the research domain has significantly risen, adding more importance to this research domain. Further, the analysis helps delineate four thematic knowledge clusters throwing light on the nomological network of the field and giving a bird's eye-view of the intellectual structure of the field. Since this review utilised data from a single database, i.e. Scopus, any shortcomings associated with the database would undoubtedly impact the results. [ABSTRACT FROM AUTHOR]

The importance of tourism expenditure is widely recognized, but the spatial patterns of visitor expenditure in cities is so far an unexplored subject. The main aim of this paper is to analyze the spatial distribution of visitor spending using bank card transaction data. Spatial statistics tools are used to identify expenditure clustering patterns and hot spots, distinguishing between national and foreign visitors, and comparing their patterns with those of locals. Our analysis shows that visitor expenditure, and especially that of foreigners, is much more concentrated in the city centre and spatially clustered than local spending. OLS regressions and spatial regression models are used for explaining the spatial distribution of visitor expenditure. Predictors are extracted from old (Cadastre) and new (the social network Foursquare) data sources. Regressions results indicate that socio-symbolic variables have greater explanatory power than physical dimension variables, that expenditure falls sharply with the distance to the city centre, and that the amount of spending in each spatial unit is influenced by the expenditure in the neighbouring spatial units. The paper demonstrates the great potential of this data source to explore with a high level of detail the spatial patterns and drivers of visitor spending within urban destinations. [ABSTRACT FROM AUTHOR]

This study examines day-of-the-week effects in short term New Zealand bank bills with maturities of 30, 60 and 90 days. The analysis is based on a within-subject design. The spot interest rates within a week are treated as repeated measures on the same subject. These interest rates are transformed into orthogonal contrasts which can be analysed separately as dependent variables. Two analyses are conducted. The full data does not exhibit significant day-of-the-week effects. When the data is trimmed, to ameliorate the presence of fat tails, a Wednesday effect is observed for the three series. The ubiquitous weekend effect is observed for one series of interest rates. However, the reverse of the weekend effect is present for the two other series. The practical importance of the results is discussed. [ABSTRACT FROM AUTHOR]

Much has been said about how crises in the EU create disintegration or differentiation pressures. Considerable attention has been paid to EU crisis governance mechanisms. Yet, less attention has been paid to the anticipation of effects of differentiated implementation on transboundary crisis management regimes. This article asks how differential policy integration accommodates the anticipation of differential implementation through institutional choices in transboundary crisis management regimes. Concerns about the consequences of national customisation influence the way in which transboundary crisis management regimes develop in terms of allocation of authority and constraints on member state discretion. The paper compares EU transboundary crisis regimes in four sectors: banking, electricity, youth unemployment, and invasive alien species. Concerns with ongoing differential implementation of transboundary crisis management generate further inevitable tensions in governance systems, leading to continued contestation over institutional arrangements. [ABSTRACT FROM AUTHOR]

This paper explores the value effects of FinTech innovations on the finance industry in China, focussing on the banking system. We use a crawler-like application programme to grab patent filing information and manually identify and classify FinTech innovations based on their application fields. FinTech patents generally bring adverse value effects to various finance sectors, revealing a competitive relationship between innovators and financial firms. FinTech innovations applied to insurance and asset management cause the most harm to the industry, especially to state-owned and joint-stock commercial banks. Moreover, disruptive FinTech innovations by start-up firms appear to pose more potential threats to commercial banks. [ABSTRACT FROM AUTHOR]

This paper examines the impact of the policy on eliminating the ratio of foreign shareholding in banks in a mixed oligopoly model. Its analytic results show that state-owned banks should encourage privatisation along with an increasing proportion of the domestic share in multinational banks. Furthermore, we argue that the increase in domestic stockholding of multinational banks raises domestic private firms' profits but decreases their social welfare in the deposit market. The results of numerical simulation show that when the quantity of private banks is fixed, foreign banks tend to enlarge their stake and strengthen their controlling power. [ABSTRACT FROM AUTHOR]

This paper empirically investigates corruption-related disclosure in the banking industry, aiming to shed light on the reasons why financial institutions disclose corruption-related information in their annual financial reports. Using a total sample of 88 banks from the GIPSI countries during the period 2011-2019, our results reveal that, on average, banks involved in corruption issues disclose less on corruption-related matters than banks not involved in any corruption scandal. Moreover, banks not involved in corruption cases disclose even more information after other banks' corruption events become public. These basic relationships, however, are shaped by the characteristics of each particular country in terms of control of corruption and the specific regulation on non-traditional banking activities. Our results are robust to different specifications of econometric models, to alternative empirical methods accounting for potential reverse causality and sample selection concerns and to the inclusion of internal corporate governance mechanisms. [ABSTRACT FROM AUTHOR]

Using a sample of East Asian banks covering the period 1999–2014, this paper analyses the impact of natural disasters on commercial bank performance and how financial integration moderates this relationship. A dynamic GMM model reveals that natural disasters significantly lower deposit ratios but have no contemporaneous relationship with liquidity, credit risk, profitability and default risk. There is also evidence of a lagged effect of disasters, increasing deposits and lowering liquidity one year after the event. Furthermore, foreign banking claims, specifically those extended by regional Asian lenders, help to alleviate the deposits decline in the aftermath of natural disasters. These baseline findings are mainly driven by severely affected countries. Overall, the paper highlights the role of commercial bank deposits and foreign banking claims as sources of finance for post-disaster recovery. In particular, the resilience of Asian foreign claims in the event of natural disasters provides evidence to support intra-regional financial integration in East Asia. [ABSTRACT FROM AUTHOR]

This paper explores the foundations for developing incentives for influencing units operating within centrally managed organizations. We begin by laying out the theory of managerial control in principal-agent contexts and draw from the incentive mechanisms developed in the related field of economic regulation. In particular, we highlight issues, differences and similarities in three recently proposed approaches under these circumstances, not only to compare them, but more importantly to motivate and arrive at requirements that should be met by incentivization systems in centrally managed multi-unit organizations. The stipulated requirements are not intended to be exhaustive but rather aim at defining conceptual foundations for further discussions and encouraging avenues for future research in this field. Our investigations are supported by graphical examples and an analysis of empirical data from banking. [ABSTRACT FROM AUTHOR]

In this paper, we apply the banking sector volatility connectedness proposed by Diebold and Yilmaz 2014 to measure the dynamic aggregate volatility risk of the bank system. Using this measure, we study how the aggregate volatility risk of the bank system affects the innovation quality of non-financial listed firms in China. This study finds a positive relationship between the banking sector volatility connectedness and corporate innovation quality. Financial constraints and bank supervision are two plausible channels through which banking sector volatility connectedness could affect corporate innovation quality. In addition, the positive effect of banking sector volatility connectedness on firm innovation quality is suppressed for bank-related firms, and during high economic policy uncertainty and post-2015 stock market crash periods. The results are consistent to a battery of robustness test. Our empirical results present a novel finding that an appropriate high aggregate volatility risk of the bank system has a bright side for company innovation. [ABSTRACT FROM AUTHOR]

This paper applies the econometric Chow test to determine the impact of the recent oil price decline on the GCC banking system for the period 2011–2017. Structural breaks in the performance of selected sample GCC banks, Saudi, UAE, and Qatar banks, are tested upon the occurrence of the recent oil price decline in 2014 for different aspects of bank performance: profitability, liquidity, credit quality, and capitalization. While Qatar banks are found to be resilient showing continuous performance over time, the Saudi banks are found to be significantly impacted by the decline experiencing negative structural breaks at the credit quality level but positive breaks at the capitalization level. However, UAE banks are found to have experienced negative breaks at the profitability, credit quality, and capitalization levels. The paper provides GCC banks with valuable insights about what bank aspects could be negatively impacted in the event of negative oil price shocks and what aspects could help mitigate the impact. This helps banks introduce necessary changes and preventive actions to better absorb future shocks. [ABSTRACT FROM AUTHOR]

Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society's areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank's FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman's Z-score are used for the assessment of FD. Lerner's index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman's z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach. [ABSTRACT FROM AUTHOR]

The paper investigates the impact of EPU on bank capital in the U.S. from 2001–2020. The empirical results show that banks hold more capital when encountering high EPU. This effect increases with the bank size, meaning that the larger banks hold more capital during increasing EPU. Interestingly, further analyses reveal that worst-capitalized banks decrease their capital ratio when EPU elevates. The results are robust under different econometric methods and alternative proxies of uncertainty and bank capital. [ABSTRACT FROM AUTHOR]

The papers of this special issue investigate the persistent challenges to European Banking Union and explore the tensions between broader financial stability objectives and national political and socio-economic pressures through a diversity of lenses. In this introduction, we examine two main issues that need to be addressed in order to strengthen Banking Union: the incomplete institutional design of Banking Union and the difficulties encountered in applying the different elements of Banking Union to loosen sovereign-bank ties. These elements include the so-called 'single' rulebook, supervision, resolution, and financial mechanisms to support and resolve banks. [ABSTRACT FROM AUTHOR]

Recently worldwide Islamic finance has gained considerable attention. However, Islamic financial institutions face multiple risks to sustaining and growing further. Against this backdrop, the paper examines the impact of both liquidity and credit risk on the efficiency of Islamic banks (IBs) operating in Bangladesh. This paper uses IB's data from 2007 to 2018 and offers a two-stage assessment. In the first stage, it uses data envelopment analysis (DEA), and in the second stage regression models to assess the impact of both liquidity and credit risk on the efficiency of the IBs. Efficiency scores confirm that IBs are operating with an 86% efficiency level through a 68% share in the constant returns to scale (CRS). Our results also confirm that both liquidity risk (LR) and credit risk (CR) have a significant impact on the efficiency of the IBs in Bangladesh. A higher score for efficiency is shown by a higher liquidity risk, whereas mixed results are confirmed by credit risk indicators. Moreover, the Z-score (a bank stability measurement) and number of branches (a measurement of the bank's network coverage), have a positive impact on efficiency. On the other side, the size of the bank and the financial crisis period show a negative relationship with the bank's efficiency. The findings of our paper significantly contribute to the Islamic banking sector, especially for the policymakers and academic researchers. [ABSTRACT FROM AUTHOR]

The paper aims to provide an in-depth understanding of the effectiveness of anti-money laundering (AML) regulations in measuring banking sector stability in Western Balkan countries, as well as to explore the possibility of enhancing banking sector policy and performance. The study employs a quantitative methodology created on secondary data from 2012 to 2021. The data analysis methodology incorporates static and dynamic approaches to examine the banking sector stability using OLS and 2SLS. The results of the study show that the tight A M L i , t implementation of both approaches has a positive and statistically significant impact on the banking sector stability ( B S S ). The value of the paper is unique in that it applies the most recent data in this field for Western Balkans countries, and it brings benefits for a better understanding of the effectiveness of A M L regulations. The research will encourage fruitful discussion among policymakers, practitioners, researchers, and financial institution executives. [ABSTRACT FROM AUTHOR]

This paper investigates whether local banking market structure affects regional entrepreneurship, measured by new firm formation. Considering provincial data over the period 2011–21 in Italy, we found that bank concentration and firm formation had an inverted ‘U’-shaped relationship. Lower levels of bank concentration fostered firm formation, but above a market share of about 58% for the largest banks, which is seen in the South and some peripheral and inner areas of central and northern Italy, increased concentration reduced firm formation. However, the presence of local banks is beneficial for the birth of new firms and can reduce the negative impact of high concentration. These findings suggest that banking market structure plays an important role in shaping regional entrepreneurship. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the downside and upside risk spillovers from three kinds of commercial banks (state-owned commercial banks (SOCBs), joint-stock commercial banks (JSCBs) and city commercial banks (CCBs)) to China's financial system by proposing a new copula quantile regression-based CoVaR model. We find that (i) the dynamic risk spillovers show heterogeneity over time, specifically that its downward trend is significant after the stock market disaster in 2015; (ii) JSCBs display the largest risk spillovers, indicating that JSCBs are the main contributors to systemic risk in China's financial system; and (iii) the risk spillovers are not symmetrical, as the upside risk spillovers are smaller than the downside risk spillovers. Our results have crucial implications for financial regulators and investors who want to measure and prevent systemic financial risk and optimise their investment strategies. [ABSTRACT FROM AUTHOR]

While Euro area interest rates were responding to accommodative monetary policy and decreasing throughout 2015-2019, in stark contrast, Lithuania's bank lending rates increased. Although the rates dropped slightly around the onset of the pandemic, they are still elevated and well above the EA figures. This paper asks the question: what were the drivers of such interest rate dynamics in Lithuania? By analysing the historical events and practical aspects of loan pricing in Lithuania's banking industry, we build an empirical model that exploits lending rate variation across banks, time and lending segments, and maps it to different drivers of pricing. We find that the recent changes in lending rates can be attributed to average bank margins, which moved largely in response to changes in market concentration. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the factors affecting consumer attitudes towards SMS advertising in the Palestinian banking sector: The moderating role of national culture) from a consumers' point of view. An empirical study was conducted using a survey questionnaire to collect primary data in order to test the hypotheses. A structural equation model (SEM) technique is employed to analyze the data collected from 424 banks' clients. The findings show that national culture acts as a moderating variable in managing the relationship between (i.e., relevancy, entertainment, informativeness, irritation, and creditability), and consumer's attitudes towards SMS advertising indicating its importance for marketers when they communicate via SMS with their clients for advertising purposes. While this paper builds on previous work, it also offers results that can help researchers and practitioners in their hunt for SMS advertising success. [ABSTRACT FROM AUTHOR]