Banking Activities Research Articles

ASSESSMENT OF THE LEVEL OF INFORMATION TRANSPARENCY OF BANKS

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.

The Banking Regulation’s Shifts in Light of Globalization and its Effect on the Banking Industry’s Performance: U.S.A. as a Model

Banking regulation is essential for the efficient functioning of banking activities and the optimal allocation of financial resources. It also plays a critical role in ensuring financial stability and safeguarding depositors by preventing banks from taking excessive risks and ensuring they maintain adequate liquidity to meet their obligations. These measures contribute to the development of the banking sector and enable banks to finance economic growth. This study seeks to examine the transformations in banking regulation over recent decades and their impact on the performance of the banking sector, focusing on the United States as a case study. To achieve this objective, a descriptive method was employed. The study found that banking regulation in the United States has undergone significant transformations, shifting from liberalization to increased restrictions. The global financial crisis of 2008 prompted regulators to tighten their frameworks, which, while initially having a slight negative impact on profitability, ultimately had a significant positive effect on the resilience of banks.

Регуляторний вплив держави на діяльність банків як категорія системного управління (сутність і метрологія)

Introduction. System management is based on the recognition of management objects as integral groups. The essence of the regulatory influence of the state on the activities of a bank is considered as a way to change project standards and current indicators of its financial stability with the justification of organizational measures to ensure stable functioning and development. Problem Statement. System management of an integral group involves a systemic analysis of the management object as a single whole with the determination of the properties and relationships of the system components: input, process, output, goal, direct and feedback, and limitations. The purpose is to determine the market characteristics of the regulatory influence of the state on the activities of banks as a category of system management, its content, metrology, and signs of complexity. Methods. The conceptual provisions of system analysis, methods of clarifying the content, properties of integrity, self-organization and stability of the system, their structuring, as well as program-targeted design were used. Results. Market characteristics were systematized and the social status of the state's regulatory influence on the activities of banks as a category of systemic management was substantiated. The integrity of the state'scomplex regulatory influence on the activities of banks was substantiated by means of a “three-story” classification of its components and the results of their interaction. Conclusions. The use of the conceptual provisions of systems theory to clarify the nature of the state's regulatory influence on the activities of banks revealed the processes of its formation as a category of systemic management. The metrology of such influence consists in monitoring and comparative assessments of: indicators of financial stability and stability of banks with the economic standards of the NBU; leading indicators of measuring the financial condition and probability of bankruptcy of banks; dynamics of the market value of banks as a target criterion of complex regulatory influence.

Assessment of the Investment Attractiveness of VTB Bank Shares

The study of VTB Bank's investment attractiveness is undoubtedly relevant due to the fact that deterioration of the geopolitical situation, the bank's inclusion in the sanctions list, as well as tightening of the monetary policy of the Bank of Russia, a pronounced weakening of the national currency had a negative impact on the activities of this commercial bank, the second most important for the Russian banking system, and in 2022 it received a record the loss; in addition, the bank's equity was significantly affected. In 2023, VTB Bank's operations began to recover, and in 2024, the bank carried out a reverse split of its own shares. The growth of investment attractiveness and a high reliability degree of systemically important commercial banks, including VTB Bank, ensure soundness and stability of the banking system, which plays a leading role in ensuring the economic development of the country. The objectives of this study are to assess the investment attractiveness of VTB Bank (PJSC) using the instrumentarium of fundamental and technical analysis and to determine the prospects for its development in terms of potential investments in the bank's shares. Materials and methods. Methods of technical analysis and econometric modeling were used to predict the share price; among special methods of financial and economic analysis, the method of estimating financial coefficients was used. The main data sources were the Investfunds, TradingView, and Smart-lab platforms. Study results. The analysis of candle patterns, construction of moving averages and tracking the relative strength indicator RSI allowed us to assert that in the first half of 2024 there was no entry point into VTB shares. The conditions under which an investor can buy shares of VTB Bank, including after the reverse split, are outlined. It has been established that construction of the ARIMA econometric model makes it possible to accurately predict the future change in VTB Bank share prices by smoothing the time series of stock prices. In the long term, such models will be ineffective, since they do not take into account changes in external factors, as well as individual factors that are characteristic of VTB Bank's activities as an issuer. The fundamental analysis has shown that problems with the bank's equity have a negative impact on the bank's investment attractiveness, since capital adequacy ratios are at a low level and do not give the bank the opportunity to pay dividends. It may take several years to restore VTB Bank's capital position, and during this period, profits will be directed to capitalization increase, rather than paying dividends. The results of the study may have practical significance for potential investors in VTB Bank securities. Conclusions. While maintaining the stability of the bank's financial position, the decisive role in shaping its investment attractiveness will belong to the decisions of the Bank of Russia regarding the key rate and the strategy of the state as the majority shareholder in the management of VTB Bank. The policy of the Bank of Russia in the form of setting a high key rate is aimed at reducing the business activity of economic entities and the inflation rate to target values, which limits the growth of the bank's loan portfolio and net interest income. In 2024, the impact of this factor will have a significant influence on the activities of VTB Bank and may affect the bank's financial results and result in a decrease in net profit, and therefore the degree of its investment attractiveness.

Review of current methods of preparation and distribution of DMEK graft at the eye banks.

The scope of eye banking activities has been expanding with the advances and techniques of keratoplasty. With the popularity of descemet membrane endothelial keratoplasty (DMEK) in the recent decade, there is a need to adopt the preparation of DMEK tissues in the eye banks. This necessitated surgical training of the eye bank technicians, development of infrastructure in the eye bank, innovative methods of graft preparation, and delivery for the surgery at distant surgery centers. Eye banks across various countries have devised and adopted different methods of providing DMEK grafts based on the demands and preferences of corneal surgeons. This review focuses on the strategies of DMEK graft preparation and its distribution at the eye banks.

Impact of Strategic Entrepreneurship on Digital Business Performance in the Banking Sector in Nigeria

Purpose: This research delves into the nexus between strategic entrepreneurship and digital business performance within Nigeria's banking sector. Methodology: Employing a mixed methods research design, the study focuses on enterprises engaged in digital banking activities across Nigeria. Utilizing the Yamane Formula, a sample of 397 respondents was randomly selected, employing semi-structured questionnaires for primary data collection. SPSS version 27 facilitated both descriptive and inferential analyses. Results: The inferential analysis revealed a statistically significant and positive impact of strategic entrepreneurship on digital business performance in Nigeria (p<0.05). Key drivers include adept question asking, referral acquisition, and value-adding skills, with an R value of 0.686 and R2 of 0.470 attesting to the model's appropriateness. Unique contribution to theory, practice, and policy: This study substantiates the social network entrepreneurship theory and advocates for enterprises in Nigeria to foster quality networks for stakeholder engagement. Policymakers are encouraged to formulate conducive legislation and policies to create a favorable operating environment for the growth of digital enterprises in the banking sector.

Forecasting the stability of the banking sector

A new methodological approach to fore­casting stress periods in the banking sector based on the use of logistic regression is considered. The model takes into account the critical shortcomings of traditional banking stability indices, which are mainly descriptive tools and do not have the predictive potential necessary for proactive risk management. It is hypothesized that existing macroeconomic and bank performance indicators cannot adequately predict the stability of the banking sector, since they mostly reflect previous and current conditions, rather than future risks or stress periods. Using annual changes in key bank balance sheet indicators, the proposed model provides an effective forecasting system with reliable performance indicators. A key feature of this research is its ability to identify the most signi­ficant indicators contributing to stress in the banking sector, especially under martial law. The model identified other critical factors of bank activity that significantly affect the level of stress, including capital adequacy, liquidity ratios, and the structure of assets and liabilities, which should be prioritized in the monitoring system. The forecasts of stress periods obtained using the model which demonstrates significant correlation with the indicators of the Financial Stress Index (FSI) of the National Bank of Ukraine, confirming its reliability. However, such a model goes further, offering practical conclusions that allow regulators to anticipate stress events, and not just analyze them retrospectively. In addition, the research offers a practical method for using open data provided by the NBU to conduct such forecasting resear­ches, ensuring transparency and reproducibility. By integrating publicly available datasets, the study demonstrates a scalable approach that can be adapted to other contexts. The research results contribute to the field of financial stability research by bridging the gap between descriptive analysis and predictive modeling, providing regulators with a powerful tool for timely interventions and mitigating systemic risks in the Ukrainian banking sector during periods of heightened uncertainty

Ensuring inclusive banking: Addressing mandatory signature challenges for visually challenged bank customers

Accessibility to banking services remains a significant problem for visually challenged bank customers (VCC). Despite Reserve Bank of India regulatory initiatives to encourage financial inclusion, conventional paper-based documents and signatures pose substantial challenges for those with visual disabilities. This study addresses critical challenges, such as inaccessible papers, readability issues, lack of support, privacy concerns, and complex signing requirements, based on field experiences and stakeholder comments. Innovative digital technology and alternative techniques, such as digital signatures, digital fingerprints, and thumbprint signatures, have emerged as promising options for improving accessibility and security in banking activities. This article analyses demographic data from visually challenged bank customers, emphasising their qualifications and banking preferences, such as primary and secondary banking services. By looking into the viewpoints of both visually challenged persons and bankers, this study intends to give suitable practical solutions to mandatory signature in banking services for the VCC and ensure regulatory reforms and better procedures to provide equal banking experiences for all, regardless of visual capacity.

COMMERCIAL BANKS OF UKRAINE DURING THE WAR: NEW TRENDS AND OLD PROBLEMS

The article is devoted to the analysis of the peculiarities of the activities of commercial banks in Ukraine during the period of full-scale war. Its purpose is to identify new trends in banking activity and substantiate recommendations for restructuring the work of banks and its state regulation in the post-war period. During the study, a number of hypotheses were tested. It is proved that despite the significant number of commercial banks in Ukraine, the banking services market is actually oligopolistic. Taking into account the fact that state-owned banks, whose share in the total assets of commercial banks reaches 56%, actually pursue a coordinated policy and act as a single entity, the Herfindahl-Hirschman index for the banking sector of Ukraine is more than 3000, which corresponds to an oligopolistic market. This situation is justified for martial law, but it will require changes in the post-war period. The hypothesis that the main factor affecting the size of commercial banks’ assets is monetary aggregates was confirmed. The closest correlation was found between the size of assets and the monetary aggregate M2. This gives reason to recommend regulating this monetary aggregate as a tool for state regulation of banking assets. During the full-scale war, the tendency to change the structure of banking assets, which originated back in 2020, intensified. A sharp decrease in the share of loans granted was noted, while the share of debt securities, mainly government bonds, increased. On the one hand, this is evidence of the success of the implementation of government programs to attract funds from commercial banks for borrowing and covering the state budget deficit, and on the other hand, it distracts the banking system from fulfilling its main function - mobilizing temporarily free funds and providing loans. The high yield of government bonds, the NBU discount rate, which significantly exceeds the inflation rate, make loans inaccessible to business. And since other components of the market infrastructure (for example, joint investment institutions) are underdeveloped in Ukraine, business is actually deprived of the opportunity to attract funds for the implementation of investment projects. A study of the dynamics of bank performance indicators (ROA, ROE) for the period from 2008 to 2024 showed that after the banking crisis of 2015-2018, when the banking system as a whole operated at a loss, in the following years the situation not only stabilized, but also demonstrated that banks received excess profits. This is again a consequence of high interest rates on government securities and the concentration of profits in state-owned banks. Substantiated proposals for changes in state policy in the post-war period, which should revive the lending activities of commercial banks.

The Impact of Government Bond Issuance on Banking Activities and Economic Growth in Indonesia

This paper aims to test the effect of crowding out on one of the developing countries, namely Indonesia. Using monthly data from January 2008 to June 2023, VECM's estimates show that the growth of government debt through its securities is negatively and significantly related to the growth of banking loans, both in the short and long term. This shows that there has been a crowding out effect in the process of withdrawing government debt. Meanwhile, the results of the Markov-switching estimate show that credit growth has a positive and significant impact on economic growth, both in normal and turbulent conditions. The growth of government debt is only positive and significant in turbulence periods, but not significant in normal times. These findings show that the government's debt policy has been at risk to the banking system and the economy.

The Unsung Heroes: The Profile of the Donor at a Southern Italian Milk Bank and Driving Factors in Human Milk Donation.

One of the most effective strategies to mitigate morbidity associated with preterm birth is the use of human milk. The first choice is the mother's milk; if that is not available, human milk donated to milk banks is the second choice. The recruitment of milk donors is essential for enhancing the effectiveness and efficiency of donation. This study aims to profile the donors of a southern Italian milk bank, examine how maternal and neonatal factors impacted the volume and duration of donation and analyze the trend over the last ten years. Data were collected from the milk bank database and hospitalization medical records, encompassing 593 donors and 13 years of activity of the Human Milk Bank from 2010 to 2022. Several variables were assessed: maternal characteristics-maternal age, employment status and the type of profession; pre and perinatal characteristics-type of delivery, parity, previous breastfeeding experience, birth weight and gestational age; milk donation characteristics-volume of milk donated and duration of donation. The trend of the characteristics was studied over time. Statistical correlations were conducted to assess the relationships between variables and the volume and duration of the milk donation. In our cohort of donors, the most prevalent category consists of women over 30 years of age who are multiparous, have prior breastfeeding experience, are workers and have given birth to full-term babies. Maternal age and gestational age significantly influence both the volume and duration of milk donation. The type of delivery and occupation impact the volume of donated milk. There has been a decline in the number of donors over time. However, the trends in both the quantity and duration of milk donations have remained stable over the past decade, with the exception of the year immediately following the COVID-19 pandemic. We have outlined the prevailing average profile of the milk donor to a milk bank in Southern Italy. Factors impacting the volume and duration of donation, such as maternal age, occupation, type of delivery and gestational age, were identified. The volume and duration of donations have remained largely stable, with the exception of 2021, when the pandemic significantly reduced milk donations to the milk bank.

Exploring employee engagement in internal branding: a case study of commercial banks in Urban Masvingo

Efficient internal branding is essential for aligning employees with an organization's ideals, especially in service industries such as banking. This study examines the influence of employee engagement on the efficacy of internal branding activities in commercial banks located in Urban Masvingo, with the objective of understanding the impact of these initiatives on staff commitment and service quality. A quantitative survey design was utilised, focussing on management-level employees, shop floor personnel, and customers from certain banks, employing stratified random sampling to guarantee a varied participant pool. The results demonstrate that although the majority of internal branding efforts focus on frontline employees, there is a significant deficiency in engagement among shop floor personnel. The lack of established recognition procedures and allocated funding for internal branding undermines effectiveness. Strong managerial support and employee participation in branding activities were recognised as essential factors for improving engagement and alignment with brand values. To enhance internal branding, banks must to conduct frequent evaluations of employee engagement, incorporate branding into HR operations, establish formal recognition systems, and promote the co-creation of branding initiatives. These measures will foster a unified organisational culture and enhance service performance, hence augmenting brand equity in a competitive marketplace. This report provides actionable ideas for banks to enhance employee involvement in internal branding and sustain a competitive advantage in a fluctuating market..

Managing and resourcing Nigerian banks’ diasporic operations in the UK: An empirical study

This study explores the objectives and operations of the diasporic operations of Nigerian banks in the UK. Its aim is to understand why such banks choose to establish a presence in the UK, how they structure themselves, and how they meet the UK’s regulatory standards. By employing a mixed-method approach – a combination of survey data and semi-structured interviews – this research examines the reasons underlying Nigerian banks’ engagement in diaspora banking, their human resources strategies, and the manifestation of their organisational culture within the UK context. The findings illustrate that Nigerian banks utilise either the subsidiary model or the branch model to cater to the financial needs of Nigerian diaspora communities, facilitate international transactions, and support international investment in Nigeria and Africa more broadly. The usually staffing strategy applied involves a mixture of UK-based employees and Nigerian staff seconded from the banks; headquarters in Nigeria, which ensures that the bank are able to adhere to both UK financial regulations and Nigerian compliance standards. The study’s originality lies in its novel contribution to the operational activities of diaspora banking in the UK.

The Role of credit and Deposit Services in Enhancing the Market Value of Stocks (The Case of Baghdad Bank)

Purpose: Understanding and analyzing the role of certain banking operations in enhancing the value of the stocks of the banks included in the study sample, in addition to measuring the correlation between the research variables. Conceptual framework : The research examined the study of banking operations and their role in enhancing the market value of shares in the Bank of Baghdad, and in light of the competition witnessed by Iraqi commercial banks, especially in light of the great similarity in the services allowed to be provided, in compliance with the Central Bank's instructions, and the decline in the value of banks’ shares, and that For a number of circumstances, it was necessary for banks to search for ways and means through which they could enhance the market value of their shares, within the permitted tools and capabilities available to them, and from this the research problem could be formulated: Is there a direct effect between banking operations (credit and bank deposits), And (the market value of the bank). Design/methodology/approach : The research depends on the deductive (deductive) method, which is based on analysis to reach the results, by moving from the general principle to the specific principle, in addition to the inductive method based on theoretical foundations by employing a method Descriptive analysis using all data, parameters with the aim of measuring the effect of some banking operations (bank credit and bank deposits as an independent variable) in enhancing (market value as a dependent variable) of the shares of Baghdad Bank in Iraq. A set of indicators, statistical methods, financial and statistical indicators will be used to analyze data, test hypotheses, and measure them using the statistical program (EViews-12 - Microsoft Excel). Findings: The study produced a variety of findings, the most significant of which is that the hypothesis is legitimate because the standard results showed that there is a statistical relationship between the research variables. Research, Practical & Social implications: The research contributes to clarifying the (relationship) between banking operations and the (market) value of the share, and its reflection on the economy. Originality/value: The findings show that the quantity of publications pertaining to banking activities and their role in enhancing market value is increasing, and that the field of economics contributes the most, as the participating countries provided the largest number of publications.

Produk Kreasi Tali Kur sebagai Sarana Peningkatan Produktifitas Ibu Rumah Tangga

The Community Association 02 area of Kelurahan Gisikdrono has 1,097 residents with 353 households. The number of female residents is 531 people, most of whom are housewives who work at home and are active in PKK activities. Through the PKK movement, housewives can strengthen the family to improve welfare. One of the reasons women work is to support the family economy. The weakness of the family economy makes housewives involved in increasing family income by looking for additional income by working for wages. In the context of efforts to improve the family economy, housewives must improve their ability to help the family economy. Given this condition, the service team tried to encourage housewives who have a lot of unproductive time in RW 02 Gisikdrono Village to be creative to make products that have economic value. She is supported again by the Waste Bank activities that have long been carried out by housewives in RW 02 Gisikdrono Village. This macrame art can be an alternative for housewives of Community Association 02 Gisikdrono Village in producing bags, wallets, key chains, brooches, etc. to get a high selling value of goods by combining the utilization of used goods in Waste Bank activities.

Banking research in the context of digitalization: On the transition to ecosystem business

Subject. This article discusses the tools and mechanisms for the transformation of international and Russian banking activities aimed at forming a competitive model for the functioning of a modern bank in the context of digitalization of the economy. Objectives. The article aims to develop a model for the transition of banking activities to an ecosystem business. Methods. For the study, we used analysis and synthesis, induction and deduction, generalization, abstraction, and modeling. Results. The article offers certain tools that involve the formation of a model for the transition of banking activities to ecosystem business in the context of digitalization. The proposed methodological development takes into account the review of the conceptual foundations of the banking system formation and the analysis of current trends in its functioning in the world economy. Conclusions. The digital transformation of the Russian banking system can lead to the introduction of new technologies, the creation of new banking products (including para-banking and non-banking services) and their successful promotion to the market, attracting new customers and expanding the scope of services provided, improving sources of financing and reducing costs, managing risks and negative impacts on the banking system and the economy as a whole, as well as achieving sustainable development goals and supporting the Russian economy.

Improving Commercial Banks’ Profit Taxation

This article examines the issue of taxation in favor of commercial banks. The research examines theoretical and empirical research on the impact of profit tax on the activities of commercial banks. In the conducted analysis, it was determined that the profit tax paid by the banks has a positive effect on the profitability of the bank. As a result of the conducted analysis, conclusions were formed on the improvement of taxation in favor of commercial banks.

Assessing the impact of sanctions on the performance of Russian banks

Subject. The article discusses the impact of sanctions on the performance of Russian banks. Objectives. The focus is on the consideration of key performance indicators of banking activities, analysis of the impact of sanctions on the efficiency of 100 Russian banks. Methods. We made a sample of 100 Russian banks, sorted by net assets, identified and calculated key performance indicators of banking activities, built a model and analyzed the impact of sanctions on performance indicators under the Difference-in-Difference method, using STATA software. Results. The study unveiled a slight negative impact on the performance indicators of banking activities. Conclusions. In 2022, unfriendly countries imposed unprecedented sanctions on Russia, including the banking sector. Thus, the analysis of the impact of sanctions on the effectiveness of Russian banks is highly relevant in modern economic conditions. Given the complex international relations and sanctions policy towards Russia, the study of this issue is extremely important for understanding the impact of external factors on the functioning of the country's banking system.

Income Diversification, Credit Risk and Profitability of Ethiopian Commercial Banks

This study examined the impact of income diversification on credit risk-taking and profitability of commercial banks in Ethiopia. Additionally, it investigated how bank-specific and macroeconomic factors influence diversification, risk-taking and profitability of these banks. The analysis was based on unbalanced panel data of 19 banks over the period of 1997-2022. The empirical estimation relies on a two-step Generalized Methods of Moments (GMM) technique. The results indicate that commercial banks in Ethiopia tend to enhance their profitability by assuming greater credit risk. The findings also indicate that diversifying income sources toward non-traditional banking activities has a significant risk reducing and profit enhancing effect for Ethiopian commercial banks. This study further suggests that bank specific characteristics, such as bank size, capitalization and liquidity; macroeconomic conditions, and the structure of the banking industry play important role in determining income diversification, credit risk-taking and profitability of banks in Ethiopia. Finally, the paper concluded by recommending the importance of promoting diversification into non-traditional businesses so as to ensure more profitable and more stable commercial banking system in Ethiopia.

Islamic Finance and Economic Growth: Empirical Evidence from Panel ARDL Approach

Abstract This paper applied the pooled Mean Group (PMG) /ARDL approach to examine the effect of Islamic finance on economic growth of Brunei, Indonesia, Jordan, Kuwait, Malaysia, Nigeria, Oman, Pakistan, Saudi Arabia, Sudan, Turkey and United Arab Emirates. Using variables such as gross domestic product growth rate as the dependent variable, Total Assets of Islamic Banks, Total Revenue of Islamic Banks, Total Islamic Banks financing and Sukuk Holdings as the independent variables for the period 2014Q1 – 2022Q4. Panel unit root test was carried out to ascertain that no variable was integrated of order 2. To achieve these four different types of panel unit root tests Im, Pesaran and Shin, ADF-Fisher, PP-Fisher and Levin Lin Chu tests were applied. The estimated pooled Mean Group (PMG) model established the existence a negative but significant long-run relationship between Islamic finance and economic growth of the selected countries with the exception of total assets of Islamic banks which shows a positive and statistically significant relationship with economic growth. The validity of this finding was supported by the error correction coefficient which was negative and statistically significant. Consequently, to achieve growth in GDP the study recommends that policymakers should focus on implementing policies that promote a conducive environment for Islamic banking activities and stimulate demand for Sharia-compliant financing. Another key policy recommendation is to develop a supportive regulatory framework that accommodates Islamic finance principles and facilitates the growth of Islamic banking operations. JEL classification numbers: F43, C33. Keywords: Islamic Finance, Economic Growth, Sukuk, Panel ARDL.