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Digital technologies challenge incumbent firms to rethink their established approaches to customer relationships. This article examines how a corporate bank reconfigured its relationship-oriented business model to benefit from digital transformation. The case analysis reveals a gradual transition toward a blended service model that first replaces, then complements, and finally augments physical with digital in increasingly complex customer interactions. While replacing and complementing human-enabled services with digital offerings are necessary steps of the digital transition, the associated competitive advantages are perceived as unlikely to endure. In contrast, augmenting human-enabled services with sophisticated digital technologies holds the potential for sustainable competitive advantage. [ABSTRACT FROM AUTHOR]

After digital platforms have become successful in the information technology (IT) industry, incumbents from traditional industries increasingly implement digital platform strategies. However, there is mixed evidence on whether these incumbents benefit from digital platform strategies. To provide systematic insights, we focus on the banking industry. With the emergence of open banking, banks have begun implementing digital platforms to unlock the innovative power of third-party developers. We conducted an event study based on the announcement of digital platform strategies in a global sample of 165 banks. We show that, on average, investors react positively to the announcements. Contrary to our expectations, this effect is more substantial for banks from emerging markets than those from developed markets. Prior artificial intelligence (AI) orientation only partly contributes to investors' favorable perception of a digital platform strategy. These results point to the complex interplay of AI orientation and digital platform strategies, yielding questions for future research. [ABSTRACT FROM AUTHOR]

This study uses a broad cross-section of countries to identify a link between financial market development and mortality rates. Our research is motivated by the idea that robust financial markets can facilitate innovation by efficiently channelling essential capital to the entities responsible for health-related advancements, resulting in improved overall health outcomes. Consistent with this conjecture, our findings reveal that countries with better-developed credit markets have markedly lower infant and maternal mortality rates. These results are robust to controls for time-series variation in mortality rates, country-specific determinants such as GDP per capita and other measures of wealth, and potential simultaneity bias. [ABSTRACT FROM AUTHOR]

In today's world, addressing the topic of sustainability is crucial due to its profound impact on financial and non-financial corporations. Although interesting, previous studies underinvestigate the issue, especially concerning financial institutions and the potential impact of national context by means of culture. This paper aims to explore the topic, delving into ESG performance and how cultural dimensions affect banks’ sustainability. We performed a quantitative analysis using different data sources. Particularly, through regression models, we investigate the direct impact of Hofstede’s cultural dimensions on the ESG rating. Moreover, we also consider financial characteristics (ROA, ROE, and bank size) and their role in interacting with ESG and Hofstede’s dimension. The main results show that culture shapes and addresses ESG banks’ orientation. Thereby, the cultural context within which banks are located matters for the achievement of the sustainability challenge. [ABSTRACT FROM AUTHOR]

Do political connections affect bank efficiency during crises? This study addresses this question by adopting a two‐stage approach that performs a quantile regression analysis on a unique dataset of listed banks in a region that has witnessed both financial and political crises, namely the Middle East and North Africa. Our results show that political connections are a driving force behind bank inefficiency. We find that the least efficient banks have the most significant association with political connections, thus supporting bailout theory. We also find that political connections influenced the efficiency of banks during the financial crisis, but not during the regional political crisis. Our results provide new evidence on the applicability of established political connection theories during political turmoil. [ABSTRACT FROM AUTHOR]

While financial development is often found to raise income inequality, it remains unclear whether the composition of the financial system makes a difference. In our sample of 99 countries over the period 1975–2020, increased activity of banks relative to markets in the provision of financial services is robustly associated with less inequality in the developing world yet with more inequality in developed economies. Accounting for redistribution systems does not alter this finding; banking sector concentration amplifies the effects. Results suggest that banks work at the extensive margin at earlier stages of economic development yet shift to the intensive margin at higher levels of development, where they increasingly serve the interests of the rich. Higher market power enables banks to better pursue their objectives at each of the margins. [ABSTRACT FROM AUTHOR]

In the wake of the financial crisis, policymakers expressed the concern that the incurred loss model delays loan loss recognition to economic stress periods and thereby exacerbates banks' lending contraction during these periods. Addressing this concern, the FASB issued Accounting Standards Update 2016-13, which requires large public banks to accrue for loan losses using the current expected credit loss (CECL) approach starting in January 2020. We hypothesize and find that banks that adopted CECL prior to the COVID-19 pandemic increased loan loss provisions and reduced loan growth during the accompanying recession more than other banks. The lending contraction is stronger for adopting banks with low regulatory capital and low loan impairment and is primarily driven by commercial loans. Lastly, we find that counties in which CECL-adopting banks have higher market share experience larger increases in unemployment rates during the recession and slower subsequent recoveries. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: E32; G21; G28; M41; M48. [ABSTRACT FROM AUTHOR]

At the end of the nineteenth century, the process of modernization penetrated deeply into Romanian society and also reached the rural world, which caused a series of changes. This article aims at researching the scope of the contribution that Romanian credit institutions had in the development of Romanian schools, churches, and cultural institutions at the time. For this purpose, the article used comparative research to review the balance sheets of Romanian credit institutions, as they were published in the media at that time, as well as documents from several archives throughout Romania. [ABSTRACT FROM AUTHOR]

This paper examines the effectiveness of macroprudential regulations in promoting bank stability and the credit market in the Kenyan financial system. The study applies a panel estimation methodology on bank‐level and non‐bank credit data for the period 2001–2021 to achieve its objectives. The study reveals three key findings. First, overall, the banking sector remains resilient as evidenced by the S‐score stability measure. Second, liquidity‐related, capital‐based, and asset‐side macroprudential regulations lower bank stability. Third, there is evidence of dampened bank credit and domestic leakage associated with macroprudential regulations. The paper concludes that macroprudential regulations are ineffective in promoting stability and the credit market. This paper recommends policymakers to use caution when implementing macroprudential conditions. This is to balance out the policy objectives of banking sector stability and access to finance. Additionally, policy makers should be mindful when implementing macroprudential measures that may cause banks to adjust their behavior, leading to domestic credit leakages and cross‐border spillovers. [ABSTRACT FROM AUTHOR]

Having into consideration the importance of the profitability of the commercial banks and their role on the economy of the developing countries, this study tries to investigate empirically the bank’s profitability and the main determinants that effect the profitability of the banks operating in the Republic of North Macedonia for the last two decades. Thus, in addition, this paper tries to underline the main determinants that influence the profitability of banks operating in the Republic of North Macedonia. In this regard, the study by utilizing secondary quarterly data for the time period 2004q1 – 2022q4 and employing VECM technique, it investigates the short-run and long-run relationship of the determinants of the profitability of the banks of the Republic of North Macedonia. From the VECM results, it can be noted that from the internal factors, deposit growth and level of non-performing loans have a strong positive long-run effect on profitability, while loan growth has a negative impact on the ROA of the Macedonian banking sector. Furthermore, from the external factors, only inflation seems to have a significant long-run effect on the profitability of the banks in the Republic of North Macedonia for the time frame 2005q1 – 2022q4. Further recommendations are given with regard to internal and external determinants of the profitability of the banks in the Republic of North Macedonia, in the scope of improving and strengthening the bank profitability, resilience and enhancing sustainable growth. [ABSTRACT FROM AUTHOR]

This study adopts an innovative, holistic research approach based on fuzzy set qualitative comparative analysis (fs‐QCA) to deeply delve into national cultural dimensions' role in affecting banks' sustainability disclosure practices in the Eastern European (EE) region. Accordingly, this study aims to identify whether one or more configurations of cultural dimensions derived from Hofstede's national culture framework are conducive to higher levels of sustainability disclosure, using a sample including the five largest banks in each country of the 'Bucharest Nine' (B9) area over 2018–2022 period. Results evidence that sustainability disclosure patterns are not homogeneous among the banks operating in B9 countries. After the introduction of Directive 95/2014/EU, banks in some countries maintained relatively constant levels of sustainability disclosure, while others experienced steady growth rates. No cultural dimension alone would likely determine higher sustainability disclosure levels among B9 banks, confirming that normative pressures influencing EE banks' sustainability disclosure practices result from a combination of more cultural facets. In particular, fs‐QCA highlights a bundle of cultural dimension configurations that mould stakeholders' expectations in investigated countries, exerting pressures on banks to enhance their transparency on sustainability issues. The presence of power distance recurs in most configurations as a factor enabling higher sustainability disclosure levels. On the other hand, in most cases, the presence of uncertainty avoidance and long‐term orientation is conducive to higher banks' sustainability and transparency. [ABSTRACT FROM AUTHOR]

Given the importance of climate change and the various ways to address it, this paper studies whether small firms that are environmentally committed are better able to access finance. It is important from a policy perspective to investigate if firms that care about climate change and sustainability are indeed being given all the incentives or if this is just a political discourse. The analysis is based on firm‐level data covering several years, which allows a temporal investigation as to whether environmental commitment is becoming an influential factor that affects access to finance. The results obtained highlight that although commitment to environmental issues is becoming more widespread in firms, they are still not important factors that affect access to external financing. The evidence regarding environmental commitment is mixed, since the paper also finds that several traditional factors continue to influence access to finance. Therefore, the providers of funds, especially banks should avoid paying lip‐service to their concern of the environment and abide by their discourse of facilitating access to finance, especially to firms having environmental commitments. [ABSTRACT FROM AUTHOR]

This paper aims to uncover the cross-sectional relationship between country-level sustainability performance and the domestic lending activity of commercial banks. Considering a worldwide sample of countries, it uses publicly available sustainability scores from SolAlability Sustainable Intelligence, macroeconomic data, and banking sector data from the World Bank. The results show that the country's sustainability performance is positively related to the amount of domestic credit granted by banks to the private sector and negatively related to the importance of nonperforming loans. Moreover, looking at the pillars that constitute the sustainability scores, this work finds evidence that social cohesion, intellectual capital, and governance are the pillars of sustainability that affect domestic lending activity. Results survive several robustness tests concerning samples, variables' definitions, and estimation procedures. Our results suggest that policies aiming at improving a country's sustainability contribute to domestic banking sector stability and financial development. Specifically, measures that contribute to social cohesion and solidarity, innovation and value-added industries, and the country's governance performance, contribute to the smooth functioning of credit markets. [ABSTRACT FROM AUTHOR]

This paper investigates announcement effects and longer‐term performance associated with the Forbes' America's Best Banks survey release. Although the market reacted positively to the announcement, the overall event window effects were insignificant. Raw and risk‐adjusted returns are statistically insignificant over longer‐time horizons. Investors cannot just use the Best Banks list to earn positive announcement window returns. However, a direct relation exists between movement in survey rank and subsequent accounting profitability measures, suggesting investors may benefit from monitoring movements on the Best Banks list. We also find support for a size effect as smaller, matched sample banks have higher Jensen's alphas than the Forbes larger Best Banks. [ABSTRACT FROM AUTHOR]

The article analyses the legal regime of privatization of state-owned banks in Ukraine. The author examines international arrangements between Ukraine and foreign partners to reduce the share of the state in the banking sector of Ukraine, in particular those set out in the memorandum between Ukraine and the International Monetary Fund. Although these agreements do not establish legally binding obligations for Ukraine under international law, they can be seen as ‘soft law’, the implementation of which is important for Ukraine’s international reputation and for obtaining funding from international donors. The article provides a comparative analysis of the current Law of Ukraine ‘On Peculiarities of Sale of Stakes Owned by the State in the Authorised Capital of Banks in Which the State Participated’ and the new draft law amending the said Law. The article highlights the main differences between the current regulation and the regulation proposed in the draft law and assesses the impact of the proposed legislative changes on the regulation of privatization of state-owned banks in Ukraine. The author examines the key changes proposed by the new draft law, including the extension of the scope of the law to all state-owned banks, the expansion of the range of potential investors, the improvements in the flexibility of the privatisation process, the introduction of restrictions for persons associated with the russian federation and the republic of belarus, the heightened requirements for financial advisors and the expansion of their powers, and the involvement of representatives of international organisations in the privatisation process. Special attention is paid to the analysis of international legal aspects of privatisation of stateowned banks. In particular, the author examines the choice of applicable law to a bank share purchase agreement, as well as the use of contractual mechanisms typical for international M&A market, such as representations, warranties, and indemnities. The author explains the meaning of these concepts and their potential impact on the privatisation process. The article also discusses mechanisms to protect the privatisation process from possible abuse by minority shareholders and former owners of nationalised banks. The article analyses the proposed amendments to the procedural legislation aimed at preventing disruption of the ongoing privatisation process. [ABSTRACT FROM AUTHOR]

We investigate whether diversification stabilizes bank lending cyclicality on a sample of 25 conventional and 18 Islamic banks from Malaysia spanning 2008 to 2021. Our findings reveal that both bank types are nonlinearly procyclical during economic expansions, with Islamic banks also exhibiting countercyclical behavior during economic contractions. Diversification is positively associated with credit growth in conventional banks and Islamic bank subsidiaries, and it amplifies procyclicality across all Islamic bank types. Conversely, loan concentration stabilizes credit in Islamic banks. These results are robust to an alternative credit measure. Further analyses indicate that public and foreign banks are procyclical during booms and countercyclical during busts. At the same time, diversification heightens procyclicality in private, local, and foreign banks, whereas concentration mitigates it in public and local banks. [ABSTRACT FROM AUTHOR]

We present a life cycle view of systemic risk and crises that incorporates and synthesizes a number of views and organizes the theoretical and empirical research evidence in a clear fashion. We illustrate how systemic risks build during the boom, are realized during the following crisis, and are well addressed or not in the aftermath, which helps determine how well or poorly the following cycle will likely evolve. We aim to improve current understanding of systemic risk and crises, the roles of the different economic segments of society, highlight key issues of measurement, and provide guidance for future academic research and policy analysis. We address several controversies—the outsized role of the banking sector in creating and resolving systemic risks, its exclusive role in systemic risk measurement, and seemingly irrational behavior in which the same or similar costly mistakes are repeated every cycle. [ABSTRACT FROM AUTHOR]

This paper aims to contribute to the ongoing discourse regarding the distinctions and application of scoring and rating systems by presenting a conceptual model designed to assess and self-assess small and medium-sized enterprises (hereinafter also "SMEs") on their sustainability transition. Indeed, SMEs operate in very different economic contexts and have simplified organizational and governance structures. These characteristics can be effectively captured through this conceptual model based on a customized questionnaire tailored to the specificities of SMEs. Following an analysis of existing literature and regulatory frameworks, a conceptual model is proposed that includes a questionnaire that, unlike commonly proposed industry questionnaires, is designed to generate an Environmental, Social and Governance (hereinafter also "ESG") Score complemented by a forward-looking perspective. This model can be useful for SMEs, as it allows them to self-assess their strengths and weaknesses in the sustainability transition process, highlighting specific needs and suggesting actions to improve their sustainability transition. It also allows banks to make a more accurate assessment of the sustainability of their customers, facilitating the redefinition of green and social credit products according to the needs of SMEs. Additionally, it also supports supply chain leaders in ensuring a sustainable supply chain by facilitating the sustainability assessment of SMEs. This is so that everything complies with the new European Union (hereinafter also "EU") regulations. Finally, the questionnaire is currently being tested at a local bank and has been proposed to SME suppliers in a specific supply chain. It will be possible to make changes to the questionnaire based on the feedback received during the administration phase. [ABSTRACT FROM AUTHOR]

SMEs play a crucial role for inclusive development, but their growth is often hampered by lacking access to finance. This paper explores whether capital markets can be harnessed to foster SME finance. Given the negligible use of market-based financing by SMEs, it is analysed to what extent capital market development indirectly alleviates SMEs' financing constraints by improving their access to loans. Thus, the study builds on the theoretical model by Song and Thakor (2010), which consolidated the view that markets and banks are complementary and co-evolve. Using a modification of the analysis framework by Rajan and Zingales (1998) for 68,712 firm-level observations from 50 mostly low- and middle-income countries for 2006-2019, it empirically investigates the central prediction of Song and Thakor (2010) that capital market development is associated with an increase in bank lending, in particular, towards smaller and riskier firms. I find a positive and significant effect; in support of Song and Thakor (2010), the effect runs through increased capital market usage by financial institutions and expanded loan availability. The findings underline that markets and banks co-evolve and that the most important contribution of capital markets to SME finance is their indirect effect on bank lending and loan availability. [ABSTRACT FROM AUTHOR]

Climate change litigation appears to have emerged as a forceful driver behind the transition to a more sustainable world. In this article some examples of this emerging trend are discussed: (i) Urgenda v Netherlands, (ii) Klimaseniorinnen Schweiz v Switzerland, (iii) Friends of the Earth v Shell, (iv) Friends of the Earth v ING, and (iv) Friends of the Earth v BNP Par ibas. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to evaluate how audit committee (AC) characteristics affect the performance of banks in Africa. Design/methodology/approach: The authors manually generated unbalanced panel data from 78 commercial banks operating in twelve (12) countries whose annual reports were published on the website of African Financials between 2010 and 2020. Findings: The results indicate that AC size has an insignificant positive association with bank performance (return on equity and Tobin's Q). AC independence has a significant positive association with bank performance. However, AC gender diversity has a significant negative association with bank performance. Besides, AC financial expertise has a significant positive and negative association with return on equity and Tobin's Q, respectively. Research limitations/implications: The study considered only 78 banks that operate in twelve (12) African countries. Besides, the authors consider only four (4) AC attributes. Practical implications: The findings suggest the need to maintain a smaller AC, appoint more independent members to AC, reduce the number of women appointed to AC and ensure most AC members have financial expertise. These measures could improve bank performance in Africa. Originality/value: Unlike previous African studies that are mostly restricted to a country level, the study examined how AC attributes influence the performance of banks that operate in Africa. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of the new post‐financial crisis regulatory regime – risk‐based capital ratios (RBC) and stress tests – on banks' off‐balance sheet activities (OBS). We use a panel of US bank holding companies over the period 2001–2018 to examine the relationship between banks' capital levels and OBS activities. Our major finding is that banks significantly reduced their OBS exposure following the introduction of the new capital regulatory framework requirements. In particular, we show that tighter regulatory RBC resulted in a reduction of OBS activities in well‐capitalised banks. Conversely, we find that under‐capitalised banks increased their OBS activities, which suggests the possibility of regulatory arbitrage. [ABSTRACT FROM AUTHOR]

We show that macroprudential policies dampen the impact of global financial conditions on local bank credit cycles. For identification, we exploit variation in the U.S. volatility index (VIX) and household and business credit registers in an emerging market economy in which banks depend on foreign funding and macroprudential measures vary over the full cycle. Our results suggest that when the VIX is low, tighter macroprudential policies reduce household lending, notably for riskier (foreign currency (FX) and high debt-service-to-income) loans and by banks dependent on foreign funding. Moreover, they increase (less regulated) local currency lending to real estate firms. Such periods are associated with less subsequent total lending to households and firms and with a lower share of FX loans at the local level. Consistently, when the VIX is low, tighter macroprudential policies dampen house prices and economic activity. This paper was accepted by Victoria Ivashina, finance. Funding: M. Epure acknowledges support from the Serra Húnter program. This project received funding from the European Research Council under the European Union's Horizon 2020 research and innovation program [Grant 648398], from the Agencia Estatal de Investigacion [Grants PID2020-115660GB-I00 and PGC2018-102133-B-I00], and the Severo Ochoa Program for Centers of Excellence in Research and Development [Grant CEX2019-000915-S]. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2024.4981. [ABSTRACT FROM AUTHOR]

The purpose of the study is to develop a methodology for assessing the level of transparency of banks through the analysis of their web resources, the application of which allows us to conclude the openness of banks, their readiness to interact with their customers, partners, regulatory bodies, the public, and other stakeholders. Based on bibliometric analysis and analysis of banks' websites, those indicators most often found on websites were singled out so they can be compared in a comparative analysis. These comparative indicators were grouped into five groups: 1) "Active transparency and information about the bank"; 2) "Information about relations with the public, users or interested parties, including mechanisms of interaction and cooperation with them"; 3) "Economic and financial transparency"; 4) "Right to access to information"; 5) "Prevention of corruption and compliance with the requirements of transparency and good management." The work used the point evaluation method of indicators, based on which a methodology was developed for evaluating the level of transparency of bank websites, which includes 45 criteria for the level of transparency of their websites. The test results showed that the method can be successfully used to assess the transparency level of their web resources. This methodology for evaluating the level of transparency of bank websites will be a useful tool for both internal and external stakeholders. For banks, it can become an additional motivational tool for improving the quality and availability of information on their web resources, and for consumers (clients, counterparties, investors, regulatory bodies, auditors, etc.) - a source of convenient and understandable information about the activities of banks and their products. In general, the conducted research helps to ensure greater transparency and trust between banks and their stakeholders, which, in turn, will contribute to the development of the modern economy. [ABSTRACT FROM AUTHOR]

Devlet borcu mali, ekonomik ve finansal etkileriyle politika yapıcılar açısından önemli bir maliye politikası aracıdır. Bu noktada önemli olan unsurlardan biri yatırımcı tabanıdır. Devlet farklı kaynaklardan finansman ihtiyacını karşılamakta ve farklı kanallar üzerinden ekonomik etkilere yol açmaktadır. Günümüzde bu etkilerin gerçekleşmesinde önemli kaynaklardan birisi de bankalardır. Bu çalışmanın amacı Türkiye’de borcun ekonomik etkisini bankacılık kredi kanalı üzerinden incelemektir. Çalışmanın amacını gerçekleştirmek adına 2006:Ç1-2023:Ç4 arası dönem için reel GSYH, merkezi yönetim iç borç stokunun GSYH’ye oranı, toplam kredi hacmi ve 5 yıllık Devlet tahvil faizi değişkenleriyle bir yapısal VAR (SVAR) modeli oluşturulmuştur. Çalışma sonuçları, iç borçtaki artışın kısa vadede dışlama etkisi yarattığını ancak devlet destekli kredi benzeri uygulamalarla orta vadede bu etkinin kaybolduğunu ve kısa vadede faizde ortaya çıkan düşüşün orta vadede etkisini yitirdiğini göstermektedir. Analiz sonuçları devlet tahvil faizindeki artışın kredi hacmi ve üretim üzerinde daraltıcı etkisine de işaret etmektedir. Bu çalışma Türkiye’de borç yönetiminde bankaların ve kredi kanalının önemini göstermektedir.

This research focuses on analysis of the market demand and nature of student loans. We have used the demand and supply model to address the student loan crisis. It serves as a framework for analysing the student-borrower motivations (the demand side) and the bank-lender motivations (the supply side). Analysis of the model shows a correlation between employment, budgeting, inflation, current economic conditions, family background, type of the university, enrolment in different courses and demand for student loans. The data is an amalgamation of primary and secondary sources collected by means of sample investigation, followed by regression analysis. The research results obtained are finally analysed and reasonable explanations are put forward.

This study aims to analyze the sufficiency and sustainability of financial resource mobilization by credit institutions in the Far North regions of Russia within the framework of regional financial security assessment. The paper examines the adequacy of financial resource mobilization through coefficient analysis. It was found that, over the past decade, there has been a consistent increase in the attraction of funds by the credit system in the Far North regions, aligning with the national growth rates. In recent years, the rate of fund mobilization from legal entities has exceeded the national average, while the rate from individuals has been lower than Russia’s average. Currently, the Far North regions’ high financial potential is supported by a relatively high share of individual deposits. The sustainability of the resources attracted by regional credit systems was assessed using regression analysis. The results indicate that northern regions exhibit low volatility in individual deposits but high volatility in term accounts belonging to legal entities, indicating significant risks of fund outflows from this category. Based on these findings, a classification of the Far North regions was developed. The analysis not only identified regions with the highest financial risks related to borrowing base formation but also highlighted northern regions with the greatest potential for regional investment instruments. These regions include the Magadan and Murmansk regions, the Kamchatka Territory, and the Republic of Karelia.

This study examines the impact of implementing generative AI voice chatbots on customer expectations and satisfaction in the banking sectors of Kazakhstan, Russia, and Italy. To achieve this objective, this study conducted a survey of 253 customers from 35 commercial banks in Kazakhstan, Russia, and Italy from November 2023 to early April 2024. This study employed partial least squares structural equation modelling (PLS-SEM) to assess and validate the validity and reliability of the research model. The study integrates the Expectation Confirmation Model with AI components to analyze factors influencing customer satisfaction with AI-enabled digital banking services. Key findings indicate that expectation confirmation, perceived performance, visual attractiveness, problem-solving capabilities, and communication quality significantly affect customer satisfaction with AI chatbots. However, trendiness and customization features showed minimal impact. The research also explores how customer satisfaction and corporate reputation influence chatbot adoption. Additionally, the study investigates the relationship between chatbot adoption and productivity performance in banking operations. The study provides several policy recommendations, including enhancing perceived performance, expectation confirmation, communication quality, visual attractiveness, and corporate reputation, which can improve customer satisfaction and increase confidence in generative AI voice chatbots in the digital banking industry. Doi: 10.28991/ESJ-2024-08-06-09 Full Text: PDF

Today, Ukraine is in an extremely difficult economic, social and political situation, which in turn determines the need to ensure the effective functioning of all spheres of the state's life, especially its financial sector. An important element of the latter is the banking system, which in the conditions of a full-scale war faced a large number of risks, among which a special place is given to non-working (problem) assets. At the same time, it should be noted that the emergence of non-performing (problem) assets in the banking sector is determined by a number of factors of a diverse nature. Objective. The article, based on the analysis of the scientific views of scientists, the norms of the current legislation and the practice of its implementation, highlights the factors that cause the emergence of non-performing (problem) assets in the banking sector in modern conditions. Methods. In the process of preparing a scientific study, a number of both general and special methods of scientific knowledge were used. Thus, the analytical method and the method of documentary analysis were used in order to identify the problems causing the emergence of (problem) assets in the banking sector. The method of systematization and classification was used in order to form the author's vision of the factors that cause the emergence of non-performing (problem) assets in the banking sector. Results. It is argued that the factors causing the emergence of non-performing (problem) assets in the banking sector should be divided into two large groups: 1) external, in particular: a) regulatory and legal; b) political; c) financial and economic; d) safe; e) demographic; 2) internal factors, which include: a) organizational and managerial factors; b) personnel; c) informational and analytical. Scientific novelty. The scientific novelty of the research lies in the fact that the theoretical approach to the definition of the key factors causing the emergence of non-performing (problem) assets in the banking sector in modern conditions was further elaborated in it. Practical significance. To solve the theoretical and practical problems causing the emergence of non-performing (problem) assets in the banking sector in modern conditions.

Over the past two decades, more than 11,000 U.S. counties have been impacted by natural disasters. This study investigates how banks and their depositors respond to such events using a difference-in-difference-in-differences (DDD) methodology combined with coarsened exact matching (CEM). Analyzing 1.3 million observations from 1999 to 2017, we find that natural disasters lead to a significant increase in deposit rates but do not affect the volume of deposits. Our findings suggest that banks raise deposit rates to counteract the potential withdrawal of funds, thereby maintaining stable deposit levels. This research provides new insights into the causal dynamics of deposit supply and demand in the face of natural disasters.