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Building and loan associations (B&Ls) financed over half of new houses constructed in the United States during the 1920s but they lost their predominance within the following decades as they were pushed to convert into Savings and Loans (S&Ls). This study examines whether the U.S. government‐insured Postal Savings System attracted funds away from B&Ls precisely when they needed them the most in the Great Depression. Annual town‐ and county‐level data from 1920 through 1935 for three states show that the sudden rise in local postal savings was associated with local downturns in B&Ls. Using a panel vector autoregression, we find that postal savings significantly reduced the amount of money in B&Ls, yet B&Ls had no significant effect on postal savings banks. Alternatively, postal savings had no significant effect on commercial banks. The results suggest that this competitive dynamic prevented B&Ls from rebounding in the mid‐1930s and helped contributed to Great Depression's local real estate lending decline. [ABSTRACT FROM AUTHOR]

This research was conducted to identify the stages in the personal selling process carried out by Relationship Managers in the Banking Sector in the Digital Age. With a qualitative approach, the data collection method is to conduct interviews with four RM practitioners at private and government banks in Salatiga City. The results of this study show that RM practitioners apply a personal selling strategy in marketing banking products, including the prospecting, the approach, the sales presentation, overcoming objection, closing and follow-up service stages. In this study, it can be concluded that RM practitioners still carry out face-to-face approaches and use e-sales kits as a form of using technology in the digital era. [ABSTRACT FROM AUTHOR]

Seeking to reach the unbanked, the US Postal Savings System provided a federally insured savings alternative to traditional banks. Using novel data sets on postal deposits, demographic characteristics, and banks, we study how and by whom the system was used. We find the program was initially used by nonfarming immigrant populations for short-term saving, then as a safe haven during the Great Depression, and finally as long-term investments for the wealthy during the 1940s. Postal Savings was only a partial substitute for traditional banks, as locations with banks often still heavily used Postal Savings. [ABSTRACT FROM AUTHOR]

Modern jurisprudence and regulation of small-dollar lending is centered on a consumer protection framework. State and federal agencies and regulators monitor lender behavior, policing fraudulent activity, lack of disclosure, or predation. However, for most of American history, the relevant legal framework relating to small-dollar lending was the law of Usury. This is due, in part, to Court decisions and legislative deregulation that made it difficult for states to enforce usury laws. However, the broader shift was ideological--from the Progressive era framework acknowledging small-dollar lending as a systemic problem to the general dominance of the neoliberal lens on the market that filtered interest rate through market competition. Usury laws, having been infused with moral and even religious overtones, seemed out of touch with the emphasis on "freedom of contract." Regulating interest rates (i.e., setting prices) for small-dollar loans became anathema for a market-centric ideology. Yet, the tide has begun to turn, at least ideologically. This Article explores the legal and political evolution in lending regulation and offers suggestions on how to account for both systemic and moral concerns in small-dollar lending. The Article concludes with a proposal for a public banking option through postal banks. [ABSTRACT FROM AUTHOR]

European banks have experienced significant changes in the type of entity that owns them (another bank, an individual or a family, a non-financial company, an institutional investor, a government, a foreign entity, a domestic entity...). In this paper, we look at the influence of ownership type changes on risk and profitability. Working with a panel of commercial banks from 17 European countries, we find that although banks that experience a change in ownership type do not exhibit lower or higher risk or profitability than other banks, their risk and profitability is significantly affected after the change takes place. The type of the acquirer plays a significant role in explaining the observed changes. When the acquirer is a non-financial company, the state or an institutional investor, the level of risk increases after the change while the level of profitability remains unchanged. Conversely, when the acquirer is a bank, we find that the level of risk-adjusted profitability decreases. Banks acquired by a different type of owner during the global financial crisis do not perform better or worse than they did before. [ABSTRACT FROM AUTHOR]

From 1911 to 1966, the United States government operated a savings bank at local post offices. Throughout the early 20th century grassroots agitation to expand the Postal Savings System served as an oppositional political force to the power of bankers. Working people advocated a postal bank that would prioritize financial security, affordable credit, and macroeconomic stability. The banking fraternity aggressively opposed efforts that workers and farmers made to expand postal savings. The failure of more than one-fifth of the nation’s banks during the early Great Depression placed the private banking system’s future survival in doubt. The extension of postal savings was a distinct possibility. However, New Deal programs responded to the banking crisis by guaranteeing bank deposits and providing affordable credit to homeowners and farmers. These reforms reduced popular interest in extending postal savings. By 1966 the political opposition facing banking interests was much diminished. Bankers finally succeeded in terminating the Postal Savings System. [ABSTRACT FROM AUTHOR]

Objectives: The study sought to establish the effectiveness of financial inclusion strategies namely National Micro finance Policy, Post Office Savings Bank loans, mobile financial services, Agency Banking, Shared Infrastructure Network, Insurance policy provisions. The study builds on previous work that has identified financial inclusion strategies but have not established their effectiveness. A Hypothetico-deductive approach was used to survey randomly selected 118 Micro, Small to Medium enterprises owners/managers in Zimbabwe. National Micro finance Policy, Post Office Savings Bank loans, mobile financial services have statistically significant effects on financial inclusion. Agency Banking, Shared Infrastructure Network, and Insurance provisions exhibited negative effects on financial inclusion. The results of the study provide inform financial services sector managers, policy makers as well as academics that National Micro finance Policy, Post Office Savings Bank loans, mobile financial services are statistically significant factors that influence financial inclusion. The results help them to effectively implement the strategies to ensure increased levels of financial inclusion. The majority of studies have only established financial inclusion strategies but have not gone further to establish the effectiveness of such strategies. The current study closed the gap by identifying the impact of each strategy. [ABSTRACT FROM AUTHOR]

The non-farm IGA activities may be defi ned as comprising all those activities associated with waged work or self-employment that are not agricultural but which generate income (including remitt ances etc.). The study aims to determine the non-farm IGA activities in Char areas. The study is based on primary and secondary data and a total of 75 samples have been selected from two Char of Kajipur upazila under Sirajganj District. The data have been collected through face to face interview and FGD method. It was observed that the most frequently practiced nonfarm IGA activities were fi shing, day laborer, renting (agri.) machineries, tailoring, handicraft, carpentry, business, water transport etc. The research also identifi ed some problems of non-farm IGAs. Among which lack of capital, problem in gett ing loan from government bank, scarcity of labor and high wage of labor and poor road communication and irrigation system are mentionable. Besides this there has a huge scope of IGA activities in removing poverty from char areas ultimately from Bangladesh. [ABSTRACT FROM AUTHOR]

Banking sector is accepted as the main motivator in socio-economic upgradation of any country especially developing one like India. Commercial banks, specially their public domain, introduce the assistance programme to society under the portfolio of commercialisation and socialisation. Public sector banks play a pivotal role in framing the socio-economic development of our country by including all financially excluded poor populace at soft terms and conditions under their purview. But in this very effort, the said banks have to face extreme pressure due to lesser amount of deposit than advance, wilful default etc. which may have high impact on their liquidity position and thus would force them to face sustainability crisis in its professional field of activity. Therefore, to carry on a smooth operation in competitive environment, public sector banks would have to maintain a steady flow of liquidity which can be judged through some basic financial ratios. The present paper aims at (i) assessing the consistent position of the public sector banks (listed in BSE 23.06.2016) in liquidity aspects during the period 1999-2000 to 2015-2016, (ii) making a bank-bank, bank-group (size of bank), and bank-sector comparative analysis on the liquidity position throughout the specific period, and (iii) examining any difference between and within at least two selected banks on liquidity aspects by applying some relevant statistical tools and techniques. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius 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.)

The Japanese Post Office, one of the world’s largest financial institutions, was finally privatised in 2015, marking an appropriate time to examine financialisation in Japan. The literature on financialisation and changes in Japanese capitalism assumes convergence on Anglo-American capitalism with a diminishing of state power. The main argument of this paper is that financialisation is instead a more contingent process. This is put forth through an examination of how this process has been mediated by the Japanese state through the workings of the Japanese Post Office. The state has frequently shaped the direction of financialisation by intervening in the routing of household funds via the postal savings system in order to achieve its objectives in different circumstances, particularly evident in the protracted and contested nature of the post bank’s privatisation. Financialisation is thus not preordained; instead its path is hewn by crisis, catastrophe, demographics and the agency of domestic social actors. [ABSTRACT FROM PUBLISHER]

Banking industry has evolved into one of the most competitive industry in India after the economic liberalization and the entry of new private sector banks in the market. The public sector banks have been feeling the crunch to maintain their business and live up to the expectation of the customers for the last few years. Service quality is the most important factor which influences the customer retention and acquisition of new business. The service quality gap or the gap between the customer expectation and customer perception of service plays the pivotal role in customer attrition and loss of business. In this context every segment of customers and their perception on service quality is important. This research paper will focus on the customer segment of domestic migrant labor in Malappuram district of Kerala. The research was done among a sample drawn out of the population of domestic migrant labor from other states of India who are working in various sectors like construction industry, hotel industry, furniture industry and barbers. A stratified convenience sampling was done with a total sample size of 60. The findings show that empathy and responsiveness are the most important dimensions as far this segment of customers is concerned. The tangibility is the least important dimension which influences this segment of customers. The results of this study can help the management to formulate strategies to satisfy this segment by improving on human dimensions like empathy and responsiveness by imparting suitable trainings. [ABSTRACT FROM AUTHOR]

Banking is based on two fundamentally irreconcilable functions: safekeeping of deposits and relending of deposits. Safekeeping is meant to be a risk-free function, but using deposits to fund loans inevitably poses risk to deposits, thereby undermining the safekeeping function. The expensive, inefficient, and unreliable apparatus of bank regulation is an attempt to square the circle between safekeeping and lending: government liquidity and deposit insurance facilities, capital and reserve requirements, investment restrictions, and supervisory examinations are all aimed at keeping the risks of the lending function in check so as to ensure the safety of deposits. This Article argues for splitting the lending function from the safekeeping function in both traditional- and shadow-banking markets through what it terms "Pure Reserve Banking." In a Pure Reserve Banking regime, "safe banks" would offer safekeeping and payment services, and nothing else. Loans would be a function solely of capital markets, which would operate without government facilitation of shadow-banking deposit substitutes. Historically, a separation between deposits and lending was not possible, but it is now feasible with today's deep and efficient capital markets, which already provide the funding for much of the borrowing in the economy. Splitting the lending function from the safekeeping function would protect both the money supply from the market and the market from the money supply. It would enable the government to end its massive support of both formal-banking markets and shadow-banking markets and would thereby remove the moral hazard that encourages asset bubbles through overlending. At the same time, divorcing lending from safekeeping would instill greater market discipline on lending markets because lending institutions could be allowed to fail without endangering the money supply. Decoupling deposits and lending would eliminate the root cause of financial market instability and enable truly safe banking that is not dependent on an increasingly complex, politicized, and untenable regulatory system. [ABSTRACT FROM AUTHOR]

The performance concerns between and amongst the employees and employers have been the subject matter of the people management across the globe. This study focuses on the stress particularly in the banking companies. The factors influencing the quantum of the stress in both the private as well as government banks are studied and analysed. Also, the methods and suggestions to tackle and manage the stress in the banks are provided by the study. [ABSTRACT FROM AUTHOR]

The postal history of India has started its foot prints prior to independence. It is the outcome of joint venture of the British, one of the colonial rulers and segregated efforts of several princely states. The postal service was opened for public on 1st April 1774. Indian Postal Department is 242 years old organisation, has a network of 1,55,837 Post Offices of which, 1,39,280 are located in Rural Areas. On an average, a Post office serves an area of 21.17 Sq. Km. and 6613 people. Though Indian Postal Department has wide coverage and network all over the country, it is observed that the department has not done required amount of advertisements to sell its products and services. The present study is conducted to find out the degree of knowledge of postal products and services in the minds of customers and the consumers' perceptions towards the Indian Postal services at rural and urban areas in North Goa district of Goa State. The survey revealed that most of the common products and services are not known or less known by the public. Twenty per cent of Government servants do not know about the postal life insurance product and majority of them are not interested to buy due to lack of information, which is one of the cheapest and most beneficial life insurance products as compared to other insurance product available in the market. The study concluded with a remark that the giant institution yet to put up its giant efforts to get giant gain. [ABSTRACT FROM AUTHOR]

In the age of the knowledge economy, the business performance of an enterprise depends on both the collective aptitude of its human resources and the general possession of knowledge. Company employees can only gain knowledge through constant studying. A company culture of learning is the impetus behind the growth of the organization, and while sharing knowledge can multiply this effect, close identification with an organization engenders an internal consensus of well-being and commitment. Together, these three elements have an important influence on overall business performance. This study takes the government-owned bank as an example and explores the interrelationships between organizational learning, knowledge sharing, organizational identification and business performance. The study furthermore provides an analysis of the variance in recognizing the aforementioned criteria by government-owned bank staff with different backgrounds. Methods used in this study include literature analysis, secondary data analysis, and survey by questionnaire. The collected data were processed by SPSS, Structural Equation Modeling (SEM) on correlation, and AMOS software for making path analysis to verify the model. Out of the 641 questionnaires, 549 are valid (85.65%). After the SPSS and AMOS stages, the following were conducted: sample analysis, descriptive statistical analysis, and variance study on the statistical variables of the population. SEM was also used to verify the analyses of different factors and the structural model, so as to understand the correlation thereof. The study results shows that, with regard to factors such as seniority, academic specialization, company position, differing departments, and management traits, the bank staff in the eastern regions held higher awareness of knowledge. The most important factors affecting a government-owned bank's business performance are organizational identification, followed by organizational learning; knowledge sharing, meanwhile, did not appear to have a positive effect. It is worthwhile to note that while organizational identification does not positively affect organizational learning, these two qualities in conjunction with knowledge sharing all have both direct and indirect effects on one another. [ABSTRACT FROM AUTHOR]

This paper investigates whether political connections improve the access of firms to financing. We propose three hypotheses to prove that political benefits exist. First, do politically connected firms obtain preferential treatment for bank loans? Second, if these firms do obtain preferential treatment, do they benefit from government-owned banks (GOBs) more than from privately owned banks? Third, is the preferential treatment from GOBs enhanced during presidential election years? We examine these three questions by using detailed data on political connections and 69,332 individual bank-loan contracts for listed firms in Taiwan from 1991 to 2008. The empirical results generally support our hypotheses. [ABSTRACT FROM AUTHOR]

In this study, we reinvestigate the question of whether government banks are inferior to private banks. We use cross country data from 1993 to 2007 to trace the different types of government banks. These types comprise banks that acquire distressed banks, normal banks, or no banks at all. Contrary to common belief, the evidence shows that unless government banks are required to purchase a distressed bank because of political factors (the government's role), their performances are at par with that of private banks. This fact particularly holds true in countries with poor records on political rights and governance. [ABSTRACT FROM AUTHOR]

The present study addresses the problem of book value insolvency by analyzing 47 Indian commercial banks (26 public sector and 21 private sector banks) over the period of 2006-07 to 2010-11. Book value insolvency score of banks is calculated using the Z-statistic, and further, the Z-statistic scores of public and private sector banks are compared. The study also analyzes selected internal determinants of book value insolvency. The results reveal that bank size is a major determinant that significantly affects the solvency of Indian commercial banks. On the other hand, it is found that increase in non-performing assets leads to high insolvency risk in Indian banks. The study concludes that public sector banks have efficient risk management and are safer than private sector banks. [ABSTRACT FROM AUTHOR]

The article discusses the threat posed by sovereign debt crises and banking crises to the solvency of domestic banking sectors and the solvency of the domestic sovereigns in Europe, respectively. The home bias in banks' government bank portfolios is cited for exacerbating the loop between government and bank solvency. A strict limitation of bank investments to cross-border sovereign debt without country-specific is proposed.

Copyright of Management & Business Administration. Central Europe is the property of Management & Business Administration, Central Europe 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.)

Everything is uncertain but within this uncertainty we can gaze some sorts of certainty. The paper analyzes the Dominance of the public sector banks have been exposed to competition from the new banks set up in the private sector with the latest technology. The existence in the new market and capture the market is full of uncertainty but the competition among the private and public sector is certain. This has created a need for the public sector banks to improve their business efficiency and volume, which is good sign of competitive effectiveness. Induced stiff competition in the banking sector certainly raises some issues relating to the functioning of domestic banks. The study mainly focuses on the State Bank of India (SBI), premium public sector bank in India, as to what extent it has affected by the entry of the new private sector banks. The study applies the t-test for finding for significant difference in the performance of SBI before and after the entry of private sector banks, with the help of financial ratios selected as the parameters for ascertaining the in the business of SBI. The results indicate that the presence of private sector bank does not pose any threat to SBI at the moment, however, the same cannot say in the future. The SBI has a strong network as compared to these new banks, and its presence has been for more than hundreds of years in the region. These facts certainly have a major impact on the results of the study. [ABSTRACT FROM AUTHOR]

A sound and effective banking system helps in the building of a healthy economy of a country. India is not an outlier in this respect. The Indian banking sector has also undergone changes. These changes have given a sound industrial structure in the country. Further, to strengthen the structure, the Indian government liberalized the industry in the year 1991. This liberalization gave entry to many foreign players. It also helped many domestic players to establish themselves in the industry. Today, all public sector and private sector banks (both Indian and foreign) compete with each other. The main thrust of the paper is to find out how age and size of banks affect their growth performance. The paper contributes to the existing literature in the area and encourages future research. [ABSTRACT FROM AUTHOR]

Public banks are often blamed to possess an unfair competitive advantage in the form of lower funding costs due to a state guarantee on their deposits. However, public and private banks tend to differ not only in their funding costs, but also in the way they deal with borrowers in financial distress. The model presented in this paper shows that if banks differ in these two characteristics, a separation of borrowers may result, with public banks lending to risky firms and private banks lending to safe firms. This separation can explain differences in the lending behavior and performance of public and private banks as observed in the market. Interestingly, the separation may persist even when funding costs are equal, implying that an abolition of state guarantees will not necessarily lead to identical performance of the two types of banks. [ABSTRACT FROM AUTHOR]

The global financial crisis was not wholly caused by ‘greed’ or ‘market fundamentalism’ but had many causes. Fortunately, governments and central banks have absorbed the lessons of mistakes made in the 1930s. Australian policy responses to the crisis have been particularly effective, although we cannot afford to be complacent. [ABSTRACT FROM AUTHOR]

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

This paper examines the political determinants of government banks' lending decisions using prefecture-level panel data on Japan's government loans from 1975 to 1992. It finds that the size of government loans is positively correlated with two political factors: (1) the electoral vulnerability of politicians who belong to the ruling Liberal Democratic Party (LDP) and (2) their seniority. These political effects are statistically robust to the inclusion of prefecture fixed effects, year fixed effects, and other socioeconomic factors and, more important, are present only in government loans, and not in private loans. These results suggest that self-interested LDP members (ab)used government loans for political purposes as implied by the "political view" of government banks. [ABSTRACT FROM AUTHOR]