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We analyse the effects of bank wholesale and retail funding swings triggered by the real economy and foreign financial flow shocks, as well as the effects of the corresponding policy interventions in three emerging countries (Croatia, Montenegro, and Slovenia) throughout the boom (2007–2008), bust (2009–2010), and recovery (2011–2013) periods of the Great Recession. We find evidence that supply-side factors were crucial for the huge procyclical credit swing, and that the cyclicality of credits to firms was amplified the most. The paper also documents that policy contribution was of a second-rate order compared to funding effects. The effectiveness of macroprudential and other policies (standard macro, structural) in supporting the stability of financial systems is discussed, and external flow, policy, and regulation effects on the credit activities of banks are disentangled. [ABSTRACT FROM AUTHOR]

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related to the perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. [ABSTRACT FROM AUTHOR]

The liquidity regulation of banks in Pillar 1 of the Basel framework does not consider longer-term funding cost risks of different bank business models. Therefore, we assemble a data set of balance sheet positions including maturities and use the method of Value-Liquidity-at-Risk to explore 118 European retail, wholesale, and trading banks. When examining liquidity-induced equity risks, trigged by exemplary rating shifts, we find that retail banks bear significantly lower funding cost risks than wholesale and trading banks. Consequently, a prudential regulation, which simultaneously considers the funding cost risk and the diversification of the banking system, is recommended. [ABSTRACT FROM AUTHOR]

The banking system is facing a lot of changes, from the regulatory framework, external competition, low interest rates up to the customers different behavior and expectations. The business model of banks is important both from revenue streaming point of view and for creating stability in the financial system. In recent times scholars and regulatory bodies have expressed their opinion and interest regarding how different banking business models faced to the crisis shocks. The present paper is resuming part of these opinions which converge to the same conclusion, retail banking business model was less affected by the crisis, in comparison with wholesale and investment banking business models, and created value for the economy. In a low rates interest environment and an increasing external and internal competition revenue diversification becomes an option. Moreover, increase of cost efficiency by changing the operating model it's a complex action and very costly, so each bank should have a personalized approach based on identified strengths and weakness. [ABSTRACT FROM AUTHOR]

I study rollover risk in wholesale funding markets when intermediaries hold liquidity ex ante and fire sales may occur ex post. Multiple equilibria exist in a global rollover game: intermediate liquidity holdings support equilibria with both positive and zero expected liquidation. A simple uniqueness refinement pins down the private liquidity choice, which balances the forgone expected return on investment with reduced fragility and costly liquidation. Due to fire sales, liquidity holdings are strategic substitutes. Intermediaries free ride on the holdings of other intermediaries, causing excessive liquidation. To internalize the systemic nature of liquidity, a macroprudential authority imposes liquidity buffers. [ABSTRACT FROM AUTHOR]

This study draws upon the service literature and operationalizes the investment model in the services domain to examine factors that contribute to customers' desire to maintain service relationships with firms (i.e., retail banks) in an emerging economy in sub-Saharan Africa: Ghana. We empirically test the explanatory power and robustness of the investment model using 218 customers of various banking institutions in Ghana. Results from partial least squares-structural equation modeling (PLS-SEM)-reveal that (1) service quality is positively associated with customer satisfaction, investment size, and customer commitment; and (2) while customer satisfaction is positively associated with customer commitment, both investment size and quality of attractive alternatives are not associated with customer commitment. Interestingly, we found investment size to have a positive association with customer commitment only when fully mediated by customer satisfaction. Our model reveals that service quality and customer satisfaction predict 79.3% of the variation in customer commitment toward maintaining a service relationship with their retail banks. Discussion and managerial implications conclude the article. © 2015 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

Two currency cocktails that were first developed for government use, the European Currency Unit (ECU) and the Special Drawing Right (SDR), now have very active markets that have evolved to meet the needs of the private sector. Although the private use of both currency composites emerged in the wholesale banking market, currency cocktails are now also rapidly becoming important in the area of retail banking. The present work explores this recent phenomenon of private use of official currency cocktails. The author looks at the origins and composition of the ECU and SDR, their development in private markets and the reasons for their relative success. JEL: G15, G21

We use financial information on banks from Asia, Europe, North America and Oceania to examine the role of wholesale funding on the transmission of financial crises to bank lending, as well as to study the response of financial institutions in different regions during the crises. We consider the role of wholesale funding during the Global Financial Crisis (GFC) and Asian Financial Crisis (AFC). Our results suggest that during the GFC, wholesale funding dependence had a negative effect on loans growth across regions, but with substantial regional heterogeneity. The growth of loans from financial institutions in Asia and Europe was consistently sensitive to wholesale funding dependence. Although wholesale funding did not play a significant role in the transmission mechanism of the AFC, a subsample of financial institutions in Asia, who depended more heavily on wholesale funding, experienced a faster loan growth and may have been able to better withstand the crisis. [ABSTRACT FROM AUTHOR]

We examine the rigidity of retail deposit and loan rates by applying duration analysis on uniquely rich data. We find that the retail rate dynamics are state-dependent. An important determinant of the duration of retail interest rates are the dynamics of the wholesale (market and monetary policy) interest rates. We also show that the reaction to positive and negative wholesale interest rate changes is strongly asymmetric. Moreover, retail rate durations are significantly modified by bank and market characteristics, such as the size of the bank, its market share in a given local market, and its geographical scope. [ABSTRACT FROM PUBLISHER]

This paper presents findings from an in-depth case study of a bank that has drawn on an anti-globalization discourse and the idea of the “local in opposition to the global” to create a niche for itself in the highly consolidated Australian retail banking market. The paper explores why, despite the contradiction inherent in its discourse, the bank has been able to garner the funds and volunteer effort of locals to establish and extend its branch network. In exploring what motivated the volunteers involved in the establishment of the local bank the paper shows how seemingly impersonal abstract processes of globalization are embedded in local places and worked out through localized practices of agency. These agentic practices were experienced as being connected, authentic, and in control. Yet as always the paradox of agency came into play and throughout the case study we see how these practices of agency are both enabled and constrained by “being local”. By highlighting processes of globalization at the local level these findings move us beyond overarching and overly “neat narratives of globalization” (Maurer, 2003). So that rather than invitations and invocations to “act locally” being seen as “anti-globalization” they should be understood as embedded processes of globalization. [ABSTRACT FROM AUTHOR]

Credit procyclicality has recently been the focus of considerable attention, but what fuels the often excessive credit growth is rarely questioned. We investigate the relationship between the composition of banks' liabilities and their credit procyclicality. After examining the macroeconomic context where banks rely increasingly on wholesale funding (WSF), we estimate the effect of WSF on the banks' credit growth using quarterly panel data for the commercial banks of Korea from 2000 to 2011. We find that a higher sensitivity of banks' WSF to the business cycle leads to an excessive response of credit growth to the business cycle, even with a low share of WSF on bank liabilities. On the other hand, we find that overseas WSF has a more marked effect on credit procyclicality, which may additionally exacerbate the financial fragility of export-led emerging economies. [ABSTRACT FROM AUTHOR]

While customer management has become a top priority for practitioners and academics, little is known about how managers actually make customer management decisions. Our study addresses this gap and uses the adaptive decision maker as well as the fast and frugal heuristics frameworks to gain a better understanding of managerial decision making. Using the process-tracing tool MouselabWEB, we presented sales managers in retail banking with three typical customer management prediction tasks. The results show that a majority of managers in this study are adaptive in their decision making and that some managers use fast and frugal heuristics. Usage of adaptive decision making seems to be mainly driven by low objective task difficulty, the use of fast and frugal heuristics by experience. While adaptive decision making does not impact predictive accuracy, usage of fast and frugal heuristics is associated with proportionally greater use of high predictive quality cues and a significant increase in accuracy. Hence, the existing skepticism concerning heuristics should be questioned. [ABSTRACT FROM AUTHOR]

The paper aims at testing the moderating effect of individualism dimension of culture on consumer behavioural intention with regards to bank services in Nigeria. To this extent, a survey was conducted with a sample of five hundred and fifty five bank customers drawn from various retails banks. Statistical Package for Social Sciences version 18 and Analysis of Moment Structure version 16 were employed. The results show that individualism has a significant moderating effect on the relationship between technical quality, perceived value and corporate image on the one hand, and behavioural intention on the other. However, individualism does not moderate the association between functional quality and behavioral intention. It was recommended that the bank policy makers should take necessary step to enhance the customer perception of technical quality, perceived value and corporate image with respect the retail bank services. [ABSTRACT FROM AUTHOR]

Abstract: This paper analyzes how different types of bank funding affect the extent to which banks ration credit to borrowers, and the impact that capital requirements have on that rationing. Using an extension of the standard Stiglitz–Weiss model of credit rationing, unsecured wholesale finance is shown to amplify the credit market impact of capital requirements as compared to funding by retail depositors. Unsecured finance surged in the pre-crisis years, but is increasingly replaced by secured funding. The collateralization of wholesale funding is found to expand the extent of credit rationing. [Copyright &y& Elsevier]

Retail banking is a mass-market banking where the banking products specially designed at customers segment and relation. Retail banks provides e-banking facilities for their high net worth and techno-savvy customers which will enables to do the banking transactions from anywhere in the world without physically going down to the branch. The highlight of this present study is on financial performance and retail banking products of MSC Bank from 2006 to 2010 through Camel Model, a recognized statistical tool. The total income of the MSC Bank has also shown good performance since last 5 years from Rs. 1442 crores from 2006 to Rs. 1536 crores including interest income. The banks have shown comparatively good and remarkable achievement. The net profits of the state co-operative banks are Rs. 221 crores in 2008 and Rs. 314 crores in 2009 which has increased almost 42%. The co-operative banks have shown every good performance as far as the retail banking products are concerned. If we look to the glance of the financial operations. It may find that deposits, Investments, Loans and Advances and total business have been increased. An attempt has been made under this research study to observe the improvements in retail banking and financial performance of MSC Bank. [ABSTRACT FROM AUTHOR]

Purpose -- There is intense competition and increasing globalisation in financial markets. Bank management must develop customer-oriented strategies in order to compete successfully in the competitive retail banking environment. The longer a bank can retain a customer, the greater revenue and cost savings from that customer. China's accession to the World Trade Organisation (WTO) has resulted in the liberalisation and deregulation of China's financial services market. Chinese customers now have greater choices between domestic and foreign banks. This study aims to identify and analyse the factors that influence bank customers' switching behaviour in the Chinese retail banking industry. Design/methodology/approach -- The data for this analysis was obtained using a convenience sample of 421 bank customers in Jiaozuo City, Henan Province, China. The decision to switch banks is hypothesised to be a function of price, reputation, service quality, effective advertising competition, involuntary switching, distance, switching costs, distance, and demographic characteristics. Factor analysis and logistic regression are used to analyse the data and identify and rank the factors that impact on the bank switching behaviour of customers. Findings -- The research findings reveal that price, reputation, service quality, effective advertising, involuntary switching, distance, and switching costs impact on customers' bank switching behaviour. The findings also reveal that the young and high-income groups are more likely to switch banks. Practical implications -- The results of this research allow service marketers and practitioners to develop and implement service marketing strategies to decrease customer defection rates, and in turn, increase bank profits. Furthermore, this research provides useful information for future researchers investigating customer switching behaviour in the retail banking industry. Originality/value -- This paper provides an empirical analysis of Chinese bank switching behaviour and provides a framework for future studies on the behaviour of bank customers. Paper type Research paper [ABSTRACT FROM AUTHOR]

Banking and finance are inherently pro-cyclical, a condition exacerbated by a combination of Basel II and mark-to-market accounting. But these latter measures have many advantages, so the need is to devise other counter-cyclical macroprudential policies. This fragility was further enhanced by a decline in bank liquidity (reliance on wholesale funding) and a shift in govenance from partnerships to limited liability public companies. Some commentators have seen the solution to such pro-cyclicality in the guise of direct constraints on bank activity, such as the promotion of 'narrow banking' or limits on bank size. While there are arguments for toughening regulation as systemic risk increases, direct constraints are simplistic; more sensible ideas involve the adoption of better designed macro-prudential regulation, perhaps with some version of banking self-insurance. Quite what the future holds for bank regulation remains, however, to be decided. [ABSTRACT FROM AUTHOR]

Ghana, one of the fastest growing liberalized developing economies in Africa, has, in recent years, established a nationwide rural bank system and has witnessed an increase in the entry of foreign retail banks. Although there are increased activities and interest about bank offerings and bank-customer relationships in Ghana (Dadzie, Akaah, and Dunson, 1989), to date, researchers have overlooked the factors underpinning consumers' selection criteria of retail banks in Ghana (Owusu-Frimpong, 1999). This exploratory research complements extant studies on retail bank selection by developing a scale providing insights into consumers' selection of retail banks in Ghana. The results identify three key factors, namely, “competence,” “recommendation by parents,” and “free banking/no bank charges” that are important in the decisions and selection of retail banks. The reliability and validity of the scale were assessed using exploratory and confirmatory factor analyses. Conclusions, managerial implications, limitations, and future research directions are discussed. [ABSTRACT FROM AUTHOR]

It has been established that increasing the role of technology in a service organisation can serve to reduce costs and improve service reliability. It is argued, however, that there remains an important role for personalised relationships in the delivery of any service proposition. Throughout this paper both of these perspectives will be discussed and an attempt is made to reconcile these apparently opposing views in the emerging age of technology-enabled remote relationships. Findings from a longitudinal research study with a large UK case bank that focused on the area of remote relationships are revisited and reinterpreted with management from the case bank in question. Through this reflective lens the bank's recent strategic decision to no longer proactively relationship manage its personal customer base is examined. In light of this deliberate relationship disconnection strategy key marketing implications are discussed.Journal of Financial Services Marketing (2008) 12, 260–271. doi:10.1057/palgrave.fsm.4760080 [ABSTRACT FROM AUTHOR]