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Cloud applications are becoming central and critical to the delivery of financial services. Despite their significance, banks face increased exposure to transaction risks related to the use of cloud services and internal and external pressures to improve their risk management practices. In this study, we use a unique data set from a bank's cloud register to examine the effectiveness of internal governance on an ongoing cloud outsourcing transaction between a bank and cloud service provider. We employ structural equation modeling and a simple linear regression to test for transaction misalignment and causes of governance inefficiencies. We find that a strong degree of misalignment is largely due to poor design of internal controls and a weak control system that does not provide acceptable indications of residual risk likelihood. The findings indicate that cloud risks are driven not only by agency costs, but also by firm-specific risks which contribute to a number of transaction uncertainties and governance misalignment. [ABSTRACT FROM AUTHOR]

In the article, the authors discuss the reasons why supervisors need to rank banking organizations periodically to rate their safety, soundness and compliance with law. Topics include how the U.S. Congress enacts laws that mandate ratings of said organizations to help build confidence in the financial system and how supervisory ratings influence organizational behavior.

Globalization and digitization of the banking and financial market are well known. They are the trends of this decade-defining the context and efficiency of the banking business. Financial innovations introduced by new technologies have provided banks with the necessary utilities to seize the possibilities to tap into efficiency and competitive advantage gains. In this context, this study seeks to assess the overall efficiency of Azerbaijanian banks in adopting and utilizing financial innovation in providing financial products and services. The data envelopment analysis was applied to compute and compare the ability of financial intermediaries to adopt financial innovations via modern technologies efficiently. Based on the institutional value-added concept, the aggregate efficiency score for each of the 14 banking institutions was calculated. The inefficiency sources were derived from the overall technical efficiency decomposition into pure technical efficiency and scale efficiency. The results showed that only four banks had utilized financial innovations in the banking production process to increase their value-added during 2017-2019. Decomposition results further indicated that slight values of the overall technical inefficiency were caused by scale inefficiency. Thus, these banks' had the capacity for banking business value-added growth by 5-16% just by adjusting scales. Simultaneously, all significant deviations from the absolute overall technical efficiency caused by both pure technical efficiency and scale efficiency. Therefore, there is still much room for banking institutions to increase valueadded by adjusting scales and enhancing banking operations and management. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine organizational-level determinants of commercial bank profitability.Design/methodology/approach Using bank-level longitudinal panel data for the 2005–2014 period, this study conducts univariate and multivariate statistical analyses, i.e. ordinary least squares (OLS), fixed-effects and feasible generalized least-squares (FGLS) regressions, to analyze profitability variables in Swedish commercial banks.Findings The findings indicate that the organizational-level determinants growth, lagged profitability and capital adequacy are positively related to banks’ current profitability. No relationship was found between banks’ size and their profitability. Moreover, no relationship was found between the macroeconomic control variable gross domestic product (GDP) and bank profitability.Practical implications Given that organizational-level determinants explain sustainable bank profitability, the findings can be used by bank managers as a basis for low-risk bank policy formulation, and by regulators in monitoring banks relative to international standards (i.e. the Basel Accords).Originality/value To the best of the authors’ knowledge, this is the first study to investigate determinants of bank profitability in Sweden, a country with a strong tradition of bank-based financing, with previous experience of a domestic bank crisis in the 1990s, and where the recent global financial crisis had relatively little impact on domestic banks. [ABSTRACT FROM AUTHOR]

The banking system of any country plays an extremely important role in the functioning and development of the national economy, since it provides all sectors and industries with financial resources, organizes settlements between different entities and turns cash and savings into capital. The stable activity of the banking sector is the key to the structural adjustment of the economy and its integration into the world economic space. Considering such a close connection of the banking system with other sectors of the economy, its activities are objects of the influence of numerous external factors and circumstances. The main system-forming element of the banking sector is an ordinary commercial bank, which management is the subject of numerous studies and scientific discussions. Recently, international banking practice has witnessed a transformation of approaches to banking management towards strategic management, which involves the process of long-term management of the bank with the formation of a general development strategy and objectives and goals of its achievement, and also considers the influence of factors of the external and internal environment. The correct approach to building a system of strategic management in a bank will not only improve the competitive position in the market and performance results but is a guarantee of banking stability in general. This article is devoted to one of the initial stages of strategic management - a strategic analysis of the external environment of a commercial bank, aimed at allocating quantitative factors of direct influence. It should be noted that external factors of direct influence are primarily concerned with entities that are directly related to banking institutions and which can be partially controlled. These included government agencies (controlling or having an impact on the banking sector), suppliers (which ensure the receipt of relevant financial, labor, material, information resources, etc.), consumers (clients of banking institutions), competitors (that is, other banking or credit institutions that provide similar services) and other counterparties. In each block, the main quantitative indicators were highlighted and a thorough analysis of their dynamics in recent years has been provided. The formed base is the basis for further research in this field. [ABSTRACT FROM AUTHOR]

The article reports on the approval by the U.S. Federal Reserve Board on the application by KSRS LLC to become a bank holding company under the Bank Holding Company Act (BHC). Topics discussed include the regulations on depository institution in the U.S., the banking industry management, and the regulations on financial institutions.

After surveying some leading cases that have occurred in the past few years, this article claims that the systems of financial supervision and the legal tools developed to handle the failure of banks should be viewed as two complementary elements; therefore they should be elaborated consistently. In the light of this complementarity, this article proceeds by describing the main features of the supervisory framework and the regulations on the subject of banks' insolvency in force at the EUlevel at the time of the crisis. In viewof these descriptions, this article concludes by showing that financial supervision and crisis resolution were not designed at the EU level as two complementary activities, arguing that several challenges faced by the Member States in dealing with the insolvency of banks during the crisis were due to this circumstance. [ABSTRACT FROM AUTHOR]

Abstract: This article takes 117 branches of a certain bank in Taiwan in 2006 as the research subject and introduces data envelopment analysis (DEA) to evaluate the operating performances of business units of this bank to provide the reference for a bank’s managers in determining operation strategies. The result indicates that, in overall technical efficiency, the case bank has many inefficient branches distinctly; the average overall technical efficiency of branches is 54.8% and the average pure technical efficiency of branches is 67%, which is probably because of lower loan-to-deposit ratio, leading to excessive input waste. The average scale efficiency of the case bank during the sample period is 82%. The ratio of resource waste due to technical inefficiency is 45.2%, of which 55.03% is due to pure technical inefficiency. [Copyright &y& Elsevier]

For the national economy, it is critically important to operate banking sector efficiently and effectively. Competition in the banking sector forces banks to use their resources effectively. In this context, performance of bank branches should be evaluated and precautionary measures should be taken according to the results of this evaluation. In this study, applicability of VIKOR (Vise Kriterijumska Optimizacija I Kompromisno Resenje) method in the performance evaluation of commercial banks which have an important role in service sector is discussed. VIKOR is one of the multiple attribute decision making methods based on determining the ranking of alternatives and reaching a compromise solution. In this study performance of a bank's branches are evaluated and ranking of the branches are determined. [ABSTRACT FROM AUTHOR]

Here we seek to spatialise aspects of the Northern Rock Bank crisis of 2007 by marrying two radically different approaches. We combine a discussion of financial lending practices with an articulation of herd behaviour in conditions of uncertainty. Both were part of the still-unfolding picture of a traumatic episode in the geography of finance but also convey lessons on the behaviour of society in situations of shortage. [ABSTRACT FROM AUTHOR]

The article reports on the significance of banks specially its products and services being offered towards the finance industry and the economy in general. The author cites the banking scenario in Great Britain, specifically the developments which occurred at the British Institute of Financial Services formerly known as the Institute of Bankers. The development reflects a revolution as well as rediscovery in the retail banking industry in the county when it marginalizes the powerful bank manager. The development is also true among other high income capitalist countries, the marginalization has also occurred among their banks.

The article outlines the fundamental changes in the structure of the U.S. commercial banking industry since the publication of the book "Perspectives on Safe and Sound Banking: Past, Present and Future" in 1986. It describes the various regulatory, technological, financial and competitive changes in the banking sector. It analyzes the current state of the industry and compares the transactions banking business model to the more traditional relationship-based banking business model.

We explore the relationship between banking sector performance and the quality of regulation and supervision as measured by compliance with the Basel Core Principles for Effective Banking Supervision (BCP). Using BCP assessment results for 65 countries and 1998-2002 panel data for other variables, we find a significant positive impact of higher compliance with BCP on banking sector performance, as measured by nonperforming loans and net interest margin, after controlling for the level of development of the economy and the financial system and macroeconomic and structural factors. [ABSTRACT FROM AUTHOR]

Focuses on the several reforms in the banking system of China as part of preparations for its accession to the World Trade Organization. Efforts to improve management at government-owned commercial banks; Reforms at rural credit cooperatives; Significance of the development of a political strategy to permit government-owned commercial banks to double as asset management companies.

As an international financial center, the banking industry in Hong Kong (HK) plays a significant role. Because of increasingly competitive pressure from domestic and overseas banks, HK banks must tightly control cost and improve quality and efficiency of operations in order to maintain profitability. For this purpose, quality management has emerged as an effective tool in recent years. In fact, it has been regarded as a vital strategic element for meeting the challenge of the new and intensified competition in the financial services industry (Knights & McCabe, 1996b, Managing Service Quality, 6, pp. 18-21). This paper reports the result of a survey on quality management initiatives in HK's banking industry between 1997 and 2000. The trend of changes in these years is analyzed and the results from HK are compared with those from British financial institutions reported by Wilkinson et al. (1996, Total Quality Management, 7, pp. 67-78). The results show that HK banks have gradually adopted quality initiatives and gained significant success in quality management over the past 3 years. They focused more on meeting service standard and providing prompt services while banking institutions in the UK focused more on understanding and meeting customers' needs. [ABSTRACT FROM AUTHOR]

This article presents a paper discussing the regulation of financial institutions in the Caribbean and shows that regulations made to protect the solvency of banks have consequences for commercial bank operation and monetary policy. The author looks at diversification and erosion of market segmentation in financial institutions and the impact of international developments on regulations. Four areas of regulation are discussed.

El artículo presenta una descripción del cambio organizacional a través de la implementación de "pensa" de capacitación por puesto en el Banco de Guatemala. El trabajo del banco es buscar personal calificado y que pueda traer un alto nivel de eficiencia a la institución. Para poder cambiar la situación dentro del Banco, los ejecutivos tenían que tomar en cuenta las necesidades de los puestos según sus descripciones y, también, la opinión de los jefes de cada departamento.

El artículo examina las funciones del Banco de Italia. Al principio, la organización, que fue fundada en 1893, fue el resultado de la fusión entre el Banco Toscano de Crédito, el Banco Nacional del Reino, y el Banco Nacional de Toscana. El Banco de Italia encabeza el sistema crediticio y actúa como el vigilante de control de las emisiones, gestión de las cámaras y servicios de compensación.