Search

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]

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]

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 banking sector has the potential to progress and grow sustainably. This is reflected in the increase in the value of distributed funds and the value of commercial bank assets. However, this increase was not in line with the increase in company value. Therefore, companies must be able to optimize their resources to increase corporate value. This study aims to analyze and explain the factors that can affect corporate value. The variables used in this research are corporate governance as an independent variable, financial performance as a mediating variable, and corporate value as a dependent variable. The type of research used is explanatory research with a quantitative approach. The samples for this research were Bank Rakyat Indonesia (BBRI), Bank Mandiri (BMRI), Bank Negara Indonesia (BBNI), and Bank Tabungan Negara (BBTN). The data analysis was done using descriptive statistical analysis and partial least squares (PLS) analysis which is processed using SmartPLS software. The results of this research indicate that corporate governance has a negative and insignificant effect on corporate value. Furthermore, corporate governance variables also had a negative and insignificant effect on financial performance. Apart from that the results also show that the financial performance variable is not able to mediate the relationship between corporate governance and corporate value significantly. The practical implication of this research was to encourage banking management in Indonesia to implement good corporate governance as it can boost financial performance. [ABSTRACT FROM AUTHOR]

This comparative study analyzed the impact of loan portfolio composition on the efficiency of different types of banks in India—public sector, old private, and new private banks—in the period between 2013 and 2022. Efficiency was evaluated using data envelopment analysis (DEA). The study considered four loan variables—term lending, working capital, priority sector lending, and secured lending in proportion to the overall loans—as independent factors against the efficiency score as the dependent variable, using a random-effects generalized least squares (GLS) regression framework. The results indicate that there were no significant effects on the efficiency of old private banks, except for working capital, which had a marginally negative impact on bank efficiency. Working capital, priority sector lending, and term lending have been found to significantly impact the efficiency of new private banks. Only term and working capital loans significantly affected the efficiency of public sector banks. [ABSTRACT FROM AUTHOR]

Purpose: The primary purpose of this paper was to identify and evaluate the optimal structure for the credit portfolio of a specific cooperative bank, with a focus on both efficiency and the resultant credit risk. Design/methodology/approach: The paper outlines strategies for sound credit risk management within the credit portfolio structure. Utilizing variable parameters, it provides various examples illustrating the potential development trajectories of a cooperative bank, along with the consequences of decisions concerning the credit portfolio structure which exemplifies risk management within a banking context and the commitment to pursuing both prudent and stable financial activities. Findings: The research substantiated the idea of formulating an optimal structure for a bank's credit portfolio. It also validated the hypothesis that effective diversification of assets could swiftly recuperate the interest income lost by the examined Cooperative Bank X by increasing other income sources. The study's outcomes affirmed that the cornerstone of effective cooperative bank management lies in maintaining a balanced ratio among various assets, ensuring a sound structure of these assets, and possessing the ability to generate a sufficient level of profit capable of offsetting realized risks. Practical implications: Applying the acquired knowledge and experiences to craft an optimal credit portfolio model for a cooperative bank. Originality/value: Emphasizing the importance of the credit portfolio structure of a cooperative bank as a fundamental tool ensuring the security of business activities, bank reputation, and customer trust. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Application Business & Management / Jurnal Aplikasi Bisnis dan Manajemen is the property of IPB 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.)

Banking systems play an essential role in the economy through their varied functions. They facilitate access to credit, ensure efficient money management and promote the smooth functioning of financial markets. In the current period, in financial and credit institutions there is an orientation towards the use of AI. Thus artificial intelligence has been introduced in bank asset management, in analyzing and assessing the risks of bank customers, in bank marketing, etc. The aim of the paper is to present the current AI technologies used in banking, highlighting the transformations that the field has undergone in recent years as a result of the implementation of AI. Moreover, the benefits, but also the risks that may arise for all actors participating in the banking market will be highlighted. We focus our attention on AI because it stimulates innovation in industry and opens the way to new business opportunities. [ABSTRACT FROM AUTHOR]

We evaluate a novel regulation designed to address ongoing risk management failures: Australia's Banking Executive Accountability Regime (BEAR). This mixed methods study draws on a survey and 41 interviews with accountable persons and their reports across 15 organisations. Consistent with theory and previous experimental research, the study demonstrates the benefits of enhanced accountability for promoting more diligent 'system 2' behaviour. We provide evidence that BEAR promotes greater felt accountability among senior executives which in turn stimulates more proactive and diligent risk management behaviour. This behaviour has the potential to attenuate many of the behavioural biases associated with risk management failures. [ABSTRACT FROM AUTHOR]

We examine the relationship between abnormal income from sales of available for sale (AFS) securities and bank external auditor fees. Prior research finds that income from sales of AFS securities is used to achieve financial and regulatory reporting objectives, helpful in predicting future bank income, and assigned a persistent valuation multiple by investors. Building on prior research that suggests real activities management leads to negative outcomes, we predict and find that auditors respond to abnormal income from AFS securities sales with increases in audit fees and the effect is stronger among high risk (i.e. higher stock return and earnings volatility) banks relative to low risk banks. In additional analyses concerning a bank's limited flexibility to achieve regulatory capital objectives through managing loan loss provisions, we find evidence of higher audit fees for banks with low regulatory capital and aggressive income-increasing AFS security sales. Among other robustness tests, we find higher audit fees as abnormal income from sales of AFS securities increases among banks with liquidity concerns and those approaching failure. Our findings suggest that auditors interpret abnormal income from AFS securities sales as an indicator of increased client business risk. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Finance Letters / Maliye Finans Yazıları Dergisi is the property of Maliye Finans Yazilari Yayimcilik Ltd. 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 primary goal of this research is to explore the preferences of domestic consumers in relation to the brand archetypes of banks. The chosen topic fits into broader research that examines the elements of brand building in the Hungarian retail banking sector and their impact on consumer preference and behaviour. Besides defining and manufacturing products brand building includes the development of a brand personality. The basic conceptual framework examined in the present research was determined based on the Mark and Pearson brand archetype framework to enable a comparison with the findings in the USA. In the research, we were also seeking an answer to the question as to whether the consumer preference regarding the banking services, payment methods and banking marketing channels examined in research has an impact on the consumer preference regarding brand archetypes, as the exploration of such effects expands the scope for interpretation and usage of the obtained results. Knowledge of preferred brand archetypes supports the management of banks' branding tools, can help banks in their innovation activities and the results can be used to develop new products and services. It is identifiable that the most preferred archetypes by consumers among the 12 possible brand archetypes are the Sage and Caregiver archetypes. There is only a slight correlation between the consumer preference regarding the various banking services, payment methods and forms of information examined in the research and the choice of the brand archetype; however, a strong relationship can be established between the choices of brand archetypes. [ABSTRACT FROM AUTHOR]

Copyright of Ekonomika is the property of Society of Economists 'Ekonomika' 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: This paper aims to examine the effect of top management support (TMS) and risk management (RM) on the internal audit activities (IAA) and fraud mitigation (FM) in the Libyan banking sector. Design/methodology/approach: The data is collected using a survey questionnaire of 16 commercial banks in Libya and analysed using a structural equation modeling. Findings: The study shows positive and significant relationships between RM and employees' FM and TMS and employees' FM. The study also demonstrates a significant mediating effect on the relationship between RM, TMS and FM. Research limitations/implications: The study is conducted in the Libyan banking sector. Further research is needed in other contexts and sectors to understand the contribution of the RM and TMS on FM, including the impact of technology and internal audit characteristics in terms of experience, education and professional certificates on FM. Originality/value: The study is the first attempt to explore FM in an emerging economy, particularly Libya, by introducing IAA as a mediator. The study provides implications for regulators and top management in the banking sector. [ABSTRACT FROM AUTHOR]

Globalization processes define the modern trends in world economic development, including both international financial markets and the banking systems of different countries. The study aims to evaluate the efficiency of the banking systems of Ukraine and 17 European countries in order to choose the appropriate measures, concerning its increasing. The Data Envelopment Analysis (DEA) was chosen as a tool for evaluating the efficiency of the banking systems; the calculations were made using the Banxia Frontier Analyst software. Also, the BBC and CCR models of linear programming were used to define the existing relationship between the studied indicators. As a result of the study, the groups of efficient and inefficient banking systems were identified, which allowed determining the existing reserves, possible managerial tools and decisions for improving the inefficient banking systems’ performance. Besides, graphical interpretation of the current position (rank) of certain country bank system in relation to other countries’ banking systems was presented. The developed approach is aimed at improving bank management at the macro level and enhancing the efficiency of banking systems.

Based on stakeholders' theory, our paper investigates the relationship between customer complaints and bank performance. We use a unique hand-collected database of customer complaints published by the banking and financial ombudsman and the financial data of the universe of Italian banks during the 2010–2017 period and employ a fixed effect panel data model and two-step system GMM estimation. We first confirm that higher complaints scaled by bank size reduce profitability and increase bank risk. Then, we show that bank institutional form affects this outcome. In contrast to cooperative banks, the performance of commercial banks is negatively influenced by customer complaints. Moreover, in contrast to medium and large banks, small banks' profitability is not affected by customer complaints. We also found that a bank's decision to settle customer complaints has a positive impact in the long run. The results are consistent when using normalized variables for size and different robustness checks. Consequently, managerial and policy implications related to customer complaints are proposed. Indeed, commercial banks must protect relational capital with customers by strengthening dialogue among the compliance function, complaints office and commercial areas to proactively manage the risk of complaints and improve performance. Policy makers should enhance banking transparency and simultaneously promote greater financial education of clients, which can foster trust in banks and their stability. [ABSTRACT FROM AUTHOR]

Our article is among the first to model the reactions of customers to the digital transformation of European banks in a scenario of declining interest margins. Motivated by the hypothesis that customers' feelings, perceptions and negative reactions towards digital transformation are channeled through the spread of negative word-of-mouth (NWOM) in a way analogous to the spread of a disease epidemic, we propose and analyze a compartmentalized mathematical model using data from a medium-sized Spanish commercial bank. To understand the NWOM phenomenon with an epidemiological approach we consider some realistic interactions in a social network and we formulate a novel application of the susceptible-exposed-infected-recoveredmortality (SEIRM) model. The results indicate that a better understanding of consumers' negative reactions and their correct monitoring can help banks improve profitability when facing a digital transformation process. In summary, the research warns commercial bank managers about the need to carefully assess the effects of changes brought about by digital transformation and the development fee management strategies based on the behavior of customer groups, as well as the deployment of new churn risk management methods to deal with the most disengaged customers. [ABSTRACT FROM AUTHOR]

During the COVID-19 lockdown, the typical bank in the Middle East lost liquidity due to deposit drains and experienced increases in nonperforming loans. The loss of liquidity was a supply shock, while the increase in nonperforming loans was a demand shock. Corporate governance increases the board's oversight of top management's implementation of strategies to reduce these shocks. Two corporate governance measures include a political concentration in the ownership and the presence of independent directors on the board of directors. Politically connected shareholders can ensure the continuous flow of deposits through their access to large depositors, thereby reducing supply shocks. Supply shocks may also be overcome by the large deposit balances from oil wealth. Independent directors are not employees of the banks on whose boards they serve, thereby providing objective evaluations of management's performance. Managers who are evaluated by independent directors can reduce nonperforming loans by strictly evaluating the creditworthiness of borrowers and providing incentives for timely repayment. Thus, demand shocks may be overcome by the scrutiny of management by independent directors. These conditions prevail in the Gulf Cooperation Council (GCC countries). Using a sample of 326 GCC banks, we perform OLS regressions followed by two-stage least squares and GMM estimator robustness checks of ownership's political concentration, independent directors, bank size, and bank liquidity on returns on assets and equity. Ownership political concentration, independent directors, bank size, and liquidity ratio significantly explained the return on assets and on equity. We conclude that large shareholders use political connections to cope with crises and that large banks are able to make new loans due to liquidity from large reserves. Independent directors evaluate management performance objectively, thereby requiring that management reduce nonperforming loans. We close research gaps of bank performance in GCC countries, as opposed to the entire MENA region, the latter being the focus of the literature. The significance of this paper is that it demonstrates the ability of banks to employ corporate governance to cope with crises. This is an original approach, as it seeks the outcome of a positive signal on bank performance of the reduction in the supply shock through ownership political concentration and reduction in the demand shock by independent directors. As corporate governance variables mitigate both shocks, corporate governance may assist banks in coping with liquidity crises. [ABSTRACT FROM AUTHOR]

The purpose of the study is a structural analysis of sustainability risks by components, taking into account the specifics of the banking business. The main results of the study are the streamlining of approaches to the systematics of ecological, social, and managerial risks, proposals for creating an additional mechanism for managing such risks, and determining the key role of the supervisory authority in encouraging banks to transform. Ukrainian banks are still at the beginning of the path to a full-fledged business model based on the principles of sustainable finance. The culture of risk management requires unification and a free transfer of experience between banks and supervision in the dissemination of good practice. There is no need to create a new organizational structure within the bank, but it is enough to enrich all three lines of risk protection with new functions and responsibilities. Today, too much attention is paid by the banking community, regulators and analysts to climate risks. The least developed in terms of methodology remains the component of corporate governance, as a result of which it is perceived as artificially attached to environmental and social aspects. Integration of ESG in banks' strategies and investment policies means an offering of ESG-related products (sustainable, green, and social bonds, green project finance etc.) for the markets. There is a danger of withdrawing debt capital from industries that are recognized as "dirty", but where the owners of the business are trying to really clean them up by modernizing technologies. Therefore, a practical solution for a modern bank is not simply a refusal to finance certain sectors of the economy, but to a greater extent a reorientation to projects that involve energy saving and energy efficiency, reducing emissions of greenhouse gas into the atmosphere, declining consumption of water and other resources. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to establish whether customers from small, medium and large business-banking segments -- who have been exposed to different customer relationship management (CRM) processes - experienced varying levels of customer satisfaction. Specifically, whether those segments with higher satisfaction levels also had higher levels of product ownership. Using computer-aided telephone interviewing, data were obtained from the participating bank and its outsourced research company over a three-year period. Respondents' data were integrated with product portfolio data, totalling 20 661 usable records. Findings showed that the bank's CRM processes support cross-selling efforts, but do not seem to yield satisfaction for larger segments. This study provides food for thought to bank managers on whether more expensive CRM processes deliver customer value, and consequently cost-effectiveness. Bank managers could utilise this study's results for better allocation of resources and the creation of optimal CRM structures within the bank. [ABSTRACT FROM AUTHOR]

Financial technology is changing the banking industry. A blend of high‐tech inventions is altering business as it reacts to unpredictability, indecisions, intricacy, and vagueness in the financial area. Banks are embracing this change and adapting financial technology in their banking products and services in customer advisory, artificial intelligence models, blockchain security, and many more. Given the dearth of literature on the arising subject of Fintech banking this paper provides a status quo and the trend of Fintech banking. A review is done of 3268 documents from the data extracted from Google Scholar for the year 1966–2021. Qualitative analysis including co‐occurrence analysis and the trend analysis was applied with the help of documents analysis, citation analysis, influential journals and authors, and leading countries in the research space. The results were achieved using the NVivo and Vosviewer software. The results identified significant topics trending in this space which include credit risk, artificial intelligence models, robot‐advisory, and decentralized blockchain usage in banking management. [ABSTRACT FROM AUTHOR]

Introduction. The domestic economy has been operating under conditions of military terror for more than a month, and the stability and predictability of the functioning of the national banking system are of great importance here. Work in the conditions of martial law became to some extent a stress test for Ukrainian banks. In today's conditions, an effective process of verifying the reliability of banks is of critical importance for the financial stability of both business and the population. Methods. The theoretical and methodological basis of the research is the fundamental provisions of general economic theories, general theories of development. In order to achieve the set goal, the methods of analysis, synthesis and generalization are applied in the article, in particular to determine the directions of development of the banking system. A systematic method was used to substantiate the proposals regarding the prospects for the development of banks in the conditions of military aggression. Series of dynamics, average values, comparison, graphic methods are used in the evaluation of the dynamics of loans; estimates of the amount of loans, rates of increase in the assets of the banking system and the authorized capital of banks. The results. The peculiarities of the development of the banking system of Ukraine at the current stage are considered. The impact of the military-political crisis on the work of the banking sector of the economy is determined. The rates and reasons for growth in the volume of assets of the banking system of Ukraine were assessed. The specific weight of banking assets in the country's GDP over the past five years has been analyzed. The causes and extent of the decrease in the authorized capital of banks have been studied. It has been proven that lending is the area of banking business that suffered the most from military aggression. The development trends of the Ukrainian banking system in the conditions of the militarypolitical crisis are determined. The complex of anti-crisis measures applied by bank management was evaluated. A retrospective assessment of subjective and objective factors influencing the functioning of the banking system was carried out and the prospects for its development were outlined. Discussion. The obtained results of the research can be used for further scientific developments regarding the restoration of the banking system of Ukraine in the conditions of military aggression with the help of state support of credit programs for enterprises in important spheres of the national economy. [ABSTRACT FROM AUTHOR]

The main purpose of this study is to examine the Basel standards, which have such an important share in the banking sector. The study highlights the importance of Basel standards to determine how banks guarantee themselves and minimize their risks by applying Basel standards to the banking system. Actions and practices to be taken within the framework of banks with a strong and stable structure, affected by different levels of risks, have brought international research and standards creation to the agenda. With the establishment of the Bank for International Settlements in 1930, the global banking and financial sector was tried to be standardized and further developed. The Basel Committee on Banking Supervision, established in 1974 as part of the Bank for International Settlements; By trying to create international standards in areas such as risk management and capital adequacy, it aimed for banks to comply with these standards at an optimal level. While there are many rules created and published by the Basel Committee Standards to ensure financial stability is built on a solid foundation, the most widely recognized are: There are Basel I, Basel II and Basel III criteria. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine whether African banks audited by a Big 4 auditor use loan loss provisions (LLPs) for earnings management purposes before, during and after the global financial crisis. It focuses on income smoothing as a type of earnings management. Design/methodology/approach: The study analyzed banks in 21 African countries from 2002 to 2014. The estimation techniques used are the fixed effect regression technique, descriptive statistic and Pearson correlation statistic. The model used in the study expresses LLPs as a function of its discretionary and non-discretionary determinants. Findings: African banks audited by Big 4 auditors use LLPs to smooth income and the incentive to smooth income is greater during an economic downturn or recession. Also, African banks audited by a Big 4 auditor use income smoothing to lower high earnings during the financial crisis and in the pre-financial crisis period but not in the post-financial crisis period. Originality/value: The literature shows that the presence of Big 4 auditors improves earnings quality. The direct impact of Big 4 auditors on earnings management in African banks has received little attention in the literature, and the impact of audit quality on bank earnings smoothing particularly in Africa is yet to be known. [ABSTRACT FROM AUTHOR]

The paper aims to investigate the impact of CAMEL components on the financial performance of commercial banks in Vietnam. Three econometric models are built using four CAMEL’s crucial indicators as independent variables (capital adequacy, asset quality, management effectiveness, bank liquidity) and return on assets (ROA), return on equity (ROE), and net interest margin (NIM) as proxies for commercial banks’ financial performance – dependent variables. The research sample includes 31 Vietnamese commercial banks over the 6-year period, from 2013 to 2018. The results show a better fit of the fixed effects model (FEM) in terms of the research methodology compared to the ordinary least squares (OLS) and random effects model (REM). It was found that capital adequacy, asset quality, liquidity and management efficiency affect the performance of Vietnamese commercial banks. Acknowledgement This research is funded by National Economics University (NEU), Hanoi, Vietnam. The authors thank anonymous referees for their contributions and the NEU for funding this research.

Purpose: The objective of this paper is to explore and extend the existing literature on the use of gamification in banking. Design/methodology/approach: Gamification is a new concept, further its application in banking is in a nascent stage both from the perspective of research and application. To systematise the limited literature and to draw the future research prospects, studies are presented based on theories, characteristics, context and methodologies framework. Findings: The synthesis of the literature on gamification opened to a spectrum of areas to determine the future of gamification in the banking industry. The study emphasises the use of social and psychological theory building in the banking industry. Further, the research on game elements is an underexplored area in the banking domain, while they have well exploited in other contexts. Banking context needs more literature evidence, empirically tested and validated research methods to understand the personality traits and customer behaviour arising from the use of gamification. Practical implications: For bank management, this study lays the impact of gamification in this era of digital banking. With the right mix of hedonic and utilitarian elements, bank management shall be able to boost financial literacy, improve saving habits, simplify banking products and strengthen knowledge updates among bank employees. Understanding the key elements and present status of research on gamification and their impact on customer behaviour development is crucial for the bank in building strategic advantage. Originality/value: This study on gamification applied explicitly to the banking sector. With no clear application of the elements and mechanics of technology used in gamification, this study presents past literature in a systematised manner and draws the future research agenda of gamification in banking services. [ABSTRACT FROM AUTHOR]

This paper employs the Statistical Cost Accounting (SCA) model to examine the relationship between profit and Asset‐Liability Management (ALM) structure of 27 banks in Ghana over the period 2007–2015. The findings confirm the central hypothesis of the SCA model and provide evidence that profitability is linked to balance sheet items in Ghana. It also documents evidence that domestic banks have higher rate of return on assets than foreign banks over the study period. In addition, high profit banks were observed to have higher rate of return on assets as well as higher rate of cost on liabilities than low profit banks. These findings provide useful insights to bank management through the identification of the assets items that generate highest return on bank profitability. [ABSTRACT FROM AUTHOR]

The recent series of banking crises in the United States and in the Eurozone has resulted in numerous bank failures. In this paper, an agent-based model is employed to test for factors that determine bank viability in times of distress, focusing mainly on the endogenous risk of financial institutions. The authors test for the effects of both management and financial factors on the institutions’ ability to weather the storm during times when the banking system experiences distress. The agent-based simulation process is split into a setup period, when the simulation builds the structural characteristics of each bank, and a testing period, where these characteristics are tested against the final result, which is the bank’s viability. A risk estimation model is built and it is found that the proposed model is successful in predicting whether a particular bank can endure a stress testing situation. The empirical results confirm the relevant literature and put further emphasis on the policy implications regarding banking supervision and regulation, particularly in context of the Eurozone banking union.

The author gave us some examples of formation of banking risks controlling and their need in Ukrainian commercial banks which, at the present stage of development, are in dare need of innovations both in sphere of management and in sphere of separate products development. The realization of controlling acquires special relevance, whereas the last is not just a management system which has absorbed the functions of accounting, planning, marketing and budget contol but also high-quality new sample of manager thinking addressed in future. Bank controlling is a functional system of planning, controlling and analyzing rejections, coordination, internal consulting and general information management of the bank. The main aim of controlling is orientation of management process for achievement of the goals of the bank. Nowadays, the market of providing controlling services in Ukraine is undeveloped, so that, it is expedient, creating of controlling companies or expansion of assortment of services of audit companies. In order to reduce the negative consequences of irrational management decisions the most effective are modern trends of services use of controlling company, whose specialists provide to bank the fulfillment of ultimate goals

The adoption of the IFRS is lauded by many countries as it improves the quality of financial reporting and reduces the likelihood of earnings management. The IFRS being principle-based standards promote firms to practice substance over form more profoundly with its inherent flexibility. Given the unique ownership nature of the Indonesian banking with high family ownership concentration, this study examines the effects of such ownership and the IFRS adoption on earnings management. The samples for this research consist of 160 firm-year observations from the 2006 - 2011 period. Findings from the study suggest that the adoption of the IFRS requirements has a good effect on reducing earnings management and concentrated family ownership also help to mitigate the earnings management. The combined effects of both the IFRS adoption and the concentrated family ownership strengthen the negative effect of the IFRS on earnings management only in the case of ownership exceeding 50 percent. At this level of ownership, the family owners align their interests with the minority shareholders. [ABSTRACT FROM AUTHOR]

We quantitatively analyse the interest rate-setting behaviour of German commercial banks during the period 2003–2014, using nonlinear (smooth transition) cointegration approaches. Our empirical results reveal principles applied by commercial banks in (re-)gaining margins in the aftermath of the financial crisis. We substantiate our findings using economic arguments from a bank management perspective. As our study contributes to a better understanding of the pass-through mechanism from market to commercial banks' customer interest rates, the results will also be relevant to meaningful assessments of the effectiveness of monetary policy measures. [ABSTRACT FROM AUTHOR]

This study analyses one of the largest and controversial mergers from the Philippine Banking sector and links it to M&A theories: Firstly, this study survey prior M&A literature to identify merger motivations, synergies and factors affecting merger outcomes. Secondly, this study conducts a case study to link prior literature to a merger in an emerging economy. This merger provides an ideal setting for a case study, subsequent links to M&A theories and generalizable lessons for future bank mergers in emerging markets. Furthermore, this study identifies key factors and steps taken by the acquiring bank management to obtain success such as doubling net income, assets and becoming the number one bank in Philippines post-merger. [ABSTRACT FROM AUTHOR]

It is a commonly held misbelief in risk management in banking that the application of logic and mathematics in economics and finance serve as panacea for all the challenges risk managers face. Against the background of lurking traps on this terrain of risk management, the call for an avoidance strategy cannot be ignored. This paper outlines five guidelines that should be met on the way towards decision-making competency in risk management: (1) Adopt intellectual modesty to come to the insight that every approach to risk management can be maladaptive. (2) Effective risk management is ascribed to well-informed decision-making, where the risks are known and understood by decision-makers. (3) Understanding risks does not culminate in risk control, but it creates room for more systems-oriented regulation. (4) Reaching awareness of a latent paradox: effective risk management and mitigation can be ineffective when viewed over time. (5) Practical wisdom is the trump card for determining decisionmaking competency: formal modelling is no substitute for human judgment in evaluating risks. [ABSTRACT FROM AUTHOR]

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine 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.)

We examine the relationship between government insurance for bank deposits and bank management's voluntary audit choice for a set of privately‐held U.S. banks. Unlikely publicly‐traded banks, U.S. regulations do not require private banks to obtain annual audits. However, all U.S. banks have the feature of insurance on customer deposits that is provided by the Federal Deposit Insurance Corporation—these insured customer deposits comprise a significant portion of the debt of most banks. Consistent with prior research we find that the voluntary choice to be audited is positively related to agency costs as measured by the size of bank assets. Our results show a negative association between a bank's insured deposits and the choice to be audited but (consistent with prior literature) a positive association with uninsured liabilities. In addition, we hypothesize and find that the bank's voluntary audit choice is positively related to the bank's growth rate and related to the bank's primary federal regulator. Taken together, these findings are consistent with the notion that audits create value primarily for uninsured depositors and have implications for bank managers, their customers, and regulators. [ABSTRACT FROM AUTHOR]

National Institute of Bank Management is completing its 50th year of journey towards academic excellence. The paper highlights NIBM's engagement in leadership development for banking and financial services industry through training, teaching, research and consultancy programmes. The author describes the key roles of the institute in advanced learning and its important contributions in the area of Development Banking. [ABSTRACT FROM AUTHOR]

Risk is a fundamental business factor, mostly because no activity can be profitable without risk. Therefore, any business company is trying to maximize its profits by managing the risk specific to its field of activity and by avoiding or transferring the risk that it does not want to take over. A robust banking strategy should include both bank risk management programs and procedures that aim to minimize the likelihood of these risks and the potential exposure of the bank. This stems from the primary objective of these policies, namely to minimize the additional losses or costs borne by the bank, and the central objective of banking activity is to gain the most profit for shareholders. [ABSTRACT FROM AUTHOR]

Nowadays, banks noticed the importance of the CRM systems and started to implement them according to their strategy. Customer relationship management solutions help banks to raise their number of clients, retain existing ones and grow their customer lifetime value. The paper highlights the measures that banks should take in order to enhance the performance of CRM. Customer relationship management in the banking system represents a research step in an interdisciplinary area of maximum interest. The subject is very important for researchers, as well as for bankers. The research about the customer service in the banks measures the customer satisfaction and tries to identify the main problems that the banks are facing with and the future of CRM in banking using the new technologies. [ABSTRACT FROM AUTHOR]

In banking, technology goes to next level as online banking. Here we can easily do the transaction hassle free form on any part of the world to others, but as we know, the new inventions have a bad side too. As in this invention, it carried out to be cyber-crime where peoples process the fraud & do illegal activities like transaction of money without any permission or without knowing you. So in this paper, we research over this issue and worked with real fact & figure and evaluate the several feasible alternatives to secure our account from illegal activity with the help of project management tools & technique(root cause analysis) and also with the help of guild of project controls, at last we find the alternative solution throughout our research which can easily slow down this online criminal activity [ABSTRACT FROM AUTHOR]

Copyright of Electronic Turkish Studies is the property of Electronic Turkish Studies 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 The purpose of this paper is to demonstrate that a deeper analysis of customer experience (CE) can identify idiosyncratic and critical perceptions in the experiences of groups of customers.Design/methodology/approach The methodology that the authors used is made of three main steps: segmentation analysis, profiling and identification of idiosyncratic clusters’ profiles (i.e. those with a CE perception different respect to the whole sample) and among these idiosyncratic clusters, identification of those that may be critical for the business.Findings The authors identified clusters of customers showing significant differences in their perceived experience with respect to the holistic CE model. Nevertheless, a sample of bank managers assessed three cluster profiles among them to be critical signals a company. The identification of these idiosyncratic patterns provides managers with interesting additional insights that would be hidden in a holistic CE model.Practical implications Managers can gain valuable insights of CE from this analysis that should be added to those coming from an holistic CE model.Originality/value This paper contributes to the scientific research in that it extends the knowledge about CE by showing how personal factors can be identified and how drawing additional managerial insights. [ABSTRACT FROM AUTHOR]