Abstract
• Stakeholders’ interest in Pillar 3 disclosures is low even during turbulent times. • During turbulent times, strategic issues have the highest peak in attractiveness. • After turbulent times, Pillar3 categories have weak interest. • Enhancement of interest of key stakeholders in Pillar 3 disclosures requires major changes. • The Pillar 3 disclosures are most attractive at the beginning and at the end of the year. Market discipline has been a scrutinized area since the last financial crisis in 2008. Regulators strengthened their role particularly through Pillar 3 in Basel III. However, there are still some aspects of market discipline that deserve special attention to avoid future failures. This study focuses on the analysis of the interest and behaviour of deposit stakeholders based on website data dedicated to disclosures of commercial bank in Slovakia during and after turbulent times (period 2009–2012). The data consists of log files, and web mining techniques were applied (the modelling of web user behaviour in dependence on time - based on the proposals of the authors). The results show that also in turbulent times, stakeholders’ interest in Pillar 3 disclosures is low (in line with ( Munk, Pilkova, Benko, & Blažeková, 2017 )) and the highest interest was identified for the Pricing List category. After turbulent times, Pillar 3 categories (Pillar 3 related information and Pillar 3 disclosures) have weak interest, with peaks at the beginning of the year, and the highest increase was in the Business Conditions category. The results suggest that the enhancement of interest of key stakeholders in disclosures inevitably requires changes to deliver sufficient disclosure data structures and to design a disclosure policy that fulfils regulatory expectations.
Highlights
We live in a world of fast changes in products, technolo gies, companies, markets and industries etc
To sum up, based on the findings stated above, the main goal of this study is twofold: Firstly, to assess the behaviour and interest of the key stakeholders in a foreign-owned commercial bank on disclosed information during and after turbulent times in a country that belongs to the Central and Eastern European (CEE) region and subsequently, based on website data analysis during and after crises to identify the key types of information, which are in the particular interest of the key stakeholders as a component for the design of optimal disclosure policy
The source data came from a domestic significant commercial bank operating in Slovakia
Summary
We live in a world of fast changes in products, technolo gies, companies, markets and industries etc. These changes are sources of economic turbulence which banking sectors cannot avoid. Market discipline is one of the areas on which regulators have focused. Pillar 3 complements the minimum risk-based capital requirements and the other quantitative requirements (Pillar 1), and the supervisory review process (Pillar 2). It aims to promote market discipline by providing meaningful regulatory information to market participants consistently and to be able to assess banks’ risk appetite, risk exposure, and level of risk management. In the studies of Bliss and Flannery (Bliss & Flannery, 2002), a market discipline is defined by its two distinguishing aspects into market monitoring – market partici pants’ assessment of banks’ conditions, which are to be reflected in banks’ security prices and deposit rates; market influence – banks’ re action brought on by market monitoring or to counteract adverse changes in banks’ conditions
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