Bank Group Research Articles

TRANSFORMATIONS OF THE RESOURCE MANAGEMENT STRATEGY OF UKRAINIAN BANKS

This article examines the peculiarities of the management of assets and liabilities of Ukrainian banks in the conditions of significant structural transformations of the resource base during the period of martial law. The analysis is carried out at the level of homogeneous structural and functional groups of banks (SFGBs), which are formed using published reporting data and the application of Kohonen's self-organizing map (SOM). Accumulation of statistical data has been carried out for 5 years, special attention is paid to structural changes in the resource base and directions of placement of bank assets over the past two years.Over the past two years, the bank has been under the influence of shock factors affecting assets and liabilities. At the beginning of 2022, there was an outflow of funds from bank accounts, which was gradually compensated by the inflow of current funds from corporations and the population of individuals. In 2023, the National Bank of Ukraine actively stimulated the development of the term resource base, the basis for ensuring the growth of credit operations. Transactions with state securities continue to grow in the structure of bank assets. The priority task of the banking system remains the financial support of business, but in the conditions of a full-scale war, such development of credit operations is limited. It is expedient to study the strategy of banks by combining the structure of assets and liabilities according to similar characteristics and analyzing the dynamics of groups. Observation of homogeneous groups confirms their stable nature, features of strategy, risk profile and development priorities. It has been proven that banks within homogeneous SFGBs demonstrate similar behaviour in the formation of management strategies and reactions to internal and external shocks. At the macro level, the SOM structure allows you to quantitatively assess the main processes taking place in the banking system, conduct comparisons with maps, and identify problems and priorities in the management of bank assets and liabilities. The SFGB method allows you to evaluate the trajectory of individual banks on the map and develop recommendations for improving the strategy of managing assets and liabilities.

Examining the portfolio carbon footprint of Indian banking system

This paper examines the portfolio carbon footprint of Indian banking system. To this end, we combine the emissions data from India's Biennial Update Reports to UNFCCC and Reserve Bank of India's bank database from 2010 to 2016; apply Network for Greening the Financial System's backward-looking methodology and Partnership for Carbon Accounting Financials Standards in conjunction with Leontief's Input-Output technique to estimate the weighted average carbon intensity (WACI) of bank's loans portfolio at three levels – System level, Bank group level and Spatial level. Our major findings include-first, at system level, the carbon footprint of Indian banks shows a rising trend over the study period with the aggregate WACI of bank loans increasing by 9.4% from 332.5 tCO2e/US$ million in 2010 to 363.7 tCO2e/US$ million in 2016. Second, at the group level, while the financed emissions of public sector banks have plateaued, for private sector banks they have nearly doubled during the study period, suggesting the increased exposure to carbon intensive assets. Third, on the spatial level, top five regions by WACI include Delhi, Maharashtra, Gujarat, Tamil Nadu, and Telangana in descending order.

How Audit Committee Address The Effects Of Political Connections And Government Ownership In Banking Sector

Purpose: This research aims to examine the influence of political connections, government ownership, and changes in loans on financial performance, as well as the role of the audit committee in moderating the relationship between political connections, government ownership, and financial performance. Methodology/approach: The research sample consists of 32 banking companies listed on the Indonesia Stock Exchange from 2017 to 2021. This study utilizes the Structural Equation Model-Partial Least Squares (SEM-PLS) analysis with WarpPLS.. Findings: The research results indicate that political connections and changes in loans have a significant impact on financial performance, while government ownership does not show any influence on financial performance. Moreover, the audit committee was found to moderate the relationship between political connections and government ownership with financial performance. Practical implications: This research contributes to the management of companies by providing insights into the factors that influence the improvement of the company's financial performance. A significant improvement in financial performance is a positive signal that investors receive about the company, thus influencing their investment decisions. Originality/value: This research adds an audit committee as a moderator, uses market-based measurements for banking financial performance, and uses a new measurement scale to assess the size of companies, especially in the banking sector, referring to POJK. Number 12 of 2021 based on Bank Group Core Capital (KMBI).

Financial Management Practices and Financial Performance of Table Banking Self-Help Groups in Kenya

Effective financial management is critical to the sustainability and growth of organizations, including support groups such as table banking groups. Table banking involves pooling members' financial resources to provide loans at reasonable interest rates to improve their socioeconomic status. This study examines the impact of financial management practices on the performance of self-help groups using the table banking model in Kenya. Theoretical frameworks, including monetary theory and financial theory, guide the investigation alongside empirical findings from previous studies. The study examines the importance of record keeping, debt management, credit assessment and cash flow management in improving the financial performance of table banking self-help groups. The results highlight the importance of these practices in maximizing savings, facilitating credit, and ultimately promoting economic empowerment within communities. The study concludes that financial management practices play a crucial role in shaping the performance of self-help groups engaged in table banking. By adopting effective strategies such as record keeping, debt management, credit assessment, and cash flow management, these groups can improve their financial stability, promote prudent lending, and ultimately contribute to poverty alleviation and economic development.

Leveraging Digital Transformation in Risk Management

This study analyses the evolving landscape of digital risk management within the banking sector. Based on responses from a diverse group of Italian banks, the research sheds light on key trends and strategic priorities in risk management. By soliciting insights from professionals and decision-makers across various financial institutions, this research seeks to provide a snapshot of current practices, challenges, and opportunities in the realm of digital risk management. Notable findings include a strong commitment to cloud adoption, a focus on areas like cyber risk and model explainability. The study underscores the industry's readiness for regulatory advancements. These insights provide valuable guidance for banking institutions navigating the complex terrain of digital risk management in the modern era.

Machina Aesthetica: Impressions on Art in and out of the Machine Age

Abstract Paul Chan reflects on his experiences as an artist working in and out of domains of technology, from truetype fonts and pirated software to datasets and machine-learning frameworks. He recounts periods of his artistic life when he abandoned technologies as instruments of production. And he offers an idiosyncratic account of a lineage of artists and writers he admires who used and abused technology in aspects of their work—including Agnès Varda, Chris Marker, the Left Bank Group in 1960s, Yvonne Rainer, Theodor Adorno and the Radio Research Project; the bio-cybernetic work of free-jazz musician, programmer, and artist Milford Graves; the pioneering sound work of Maryanne Amacher; and the writer Claudia La Rocco—and how their dynamic and at times contentious relationship with technology proved vital to their understanding of what art under the influence of historical and social progress looks like.

The Development of the Cooperative Banking Sector in Selected Central and Eastern European Countries

The study assesses the development of the cooperative banking sector in selected Central and Eastern European (CEE) countries against the average statistics of the segment in those countries. It also compares it to the largest European cooperative banking group in Germany. The article presents the results of an analysis of the cooperative banking sectors between 2016 and 2021 in Poland, Bulgaria, Romania, Hungary and Germany, all of which are members of the European Association of Cooperative Banks (EACB). The selection criterion was based on the availability of detailed data on cooperative banks published by the EACB on a temporal and spatial basis.
 The empirical basis for the issues addressed in the article is a review of the reference literature and the comparative analysis of the development of the cooperative banking sector using a synthetic development indicator for the period 2016–2021. According to the theoretical and empirical analysis, Romania demonstrates the lowest level of development of the cooperative banking segment. In turn, the Polish and Bulgarian cooperative banking sectors represents a higher level of development than the Romanian one. Hungary has reached the highest level of development in the group of Central and Eastern European countries. While comparing the CEE countries to the German cooperative banking sector, their development was almost one and a half times lower and, in the case of Romania, three times lower.

Analysis of Determinants That Influence the Profitability of Conventional Banks in Indonesia

This research aims to examine the factors that influence the level of profitability in conventional banking in Indonesia in 2010-2019. This research uses Return on Assets (ROA) as a ratio to describe the level of profitability of commercial banks in Indonesia. The object of this research is conventional banking in Indonesia, with a research sample of 6 groups of conventional banks, namely Persero Banks, Foreign Exchange Private Banks, Non-Foreign Exchange Private Banks, Regional Development Banks (BPD), Joint Venture, and Foreign Banks. The analytical method used in this research is panel data regression analysis with Random Effect Model (REM). The research shows that the spread interest rate, Bank Indonesia Certificate (SBI), and third party funds (DPK) have a positive and significant effect on Return on Assets (ROA). Meanwhile, the interbank liability variable has a negative and significant effect on Return on Assets (ROA). Simultaneously, spread interest rate, SBI, third party funds, and interbank liabilities influence ROA.

Bank affiliation and timing ability of mutual funds: Evidence from China

This study analyzes the impact of commercial bank affiliation on mutual funds' timing ability. In contrast to the findings for developed markets, affiliated funds outperform unaffiliated funds in China. Here, we explain affiliated funds' outperformance using 3,351 Chinese equity and hybrid mutual funds between 2008 and 2019 to demonstrate that affiliated funds are better timed than unaffiliated funds. One underlying mechanism is that affiliated funds benefit from information advantages due to the unique position of commercial banks in China's economy. Further findings reveal that better timing ability subsequently benefits commercial banking groups, indicating that commercial banks and affiliated funds share a mutual incentive compatibility relationship. A quasi-natural experiment of variations in bank affiliation verifies a causal interpretation of these findings, and our results continue to hold across a set of robustness tests.

Disclosure Compliance with Different ESG Reporting Guidelines: The Sustainability Ranking of Selected European and Hungarian Banks in the Socio-Economic Crisis Period

As the relevant European Union directives require in-depth sustainability reporting from large institutions, banks are among the concerned with disclosure obligations. Several institutions prepare self-structured recommendations by which companies are indirectly fostered to make their operation more sustainable through reporting and to help compliance with the upcoming Corporate Sustainability Reporting Directive (CSRD) regulations. However, in the preparation period, differences can be found in the actual sustainability disclosure practices across Europe (primarily by a western–eastern European relation). To examine this issue, this study aimed to investigate if there was any variation in the reporting compliance with aspects (key performance indicators—KPIs) of three reporting guidelines (Global Reporting Initiative—G4, Financial Services Sector Disclosures—GRI; Alliance for Corporate Transparency—ACT; ISO 26000:2010—ISO) between top European and Hungarian banks according to their 2021 sustainability/ESG reports, using content analysis-based disclosure scoring. The results revealed no significant differences among the general (aspect-pooled) scores for different guidelines, while the differences were significant for each guideline between the two bank groups. In the aspect-level evaluation, the European banks had higher scores in most cases, with the Hungarian banks receiving higher scores in 4 of 49 GRI, 1 of 16 ACT, and 2 of 37 ISO aspects. Significant correlations were indicated in disclosure score values between the two bank groups, which suggested similar preferences for the aspects demonstrated; however, elaboration levels differed. These findings showed that the European and Hungarian banks could be differentiated by their sustainability disclosure patterns. The results suggest a better CSRD-level preparedness of the top European banks than of the Hungarian ones, with the latter being introduced as a model group of the region. This reflects the need for more efficient adoption of best practices by financial institutions in the eastern parts of Europe.

Effect of Micro and Macroeconomic Variables on Performance of Islamic Life Insurance in Southeast Asia

This study aims to determine the effect of gross contribution income, investment income and macroeconomic variables consisting of GDP, inflation and exchange rates on the growth of assets of Islamic life insurance companies in the Southeast Asian region. This research is a quantitative research with associative type. The analysis method used is panel data regression analysis with the help of E-views 12 software. The required data consists of company financial statements published through each company's website and World Bank Group data. The study was conducted on sharia life insurance during the 2017-2021 period with a sample of 33 companies. The results showed that partial contribution had a positive effect on asset growth, while GDP and exchange rates had a negative effect on asset growth, furthermore investment income and inflation did not affect the asset growth of Islamic life insurance companies in Southeast Asia. Simultaneously, all independent variables contributed 47% to the growth of Islamic life insurance company assets in Southeast Asia. The rest (53%) were influenced by other variables not addressed in the study.

Co-operative Banks - A Helping Hands for Small and Medium Entrepreneurs in Saharanpur District

Co-operative banks are more structured compared to credit associations. While local branches of cooperative banks can pick their own leaders and manage their own tasks, big decisions need to be approved by a main office. Credit associations frequently exercise significant local fundamental leadership, but by joining forces, they can share back-office functions including access to the global payments system. This essay provides background information on cooperative banks and small bank groups. Co-operative banks have more information available than "little establishments" as a whole cooperative banking systems exhibit greater organizational structure compared to credit association systems. Local branches of cooperative banks have autonomy in selecting their executive candidates and managing their operations. Small and medium enterprises (SMEs) encounter unique challenges in their development compared to large enterprises. The competitive market environment demands that SMEs adapt to the survival-of-the-fittest dynamics inherent in a market economy. In essence, this translates to a competition for human resources, making staff training a crucial method for SMEs aiming at long-term, stable development. Staff training serves as a fundamental approach to elevate the quality of human resources within SMEs. The paper provides background information on cooperative banks and small bank groups, highlighting their organizational structure and decision-making processes. It emphasizes the importance of staff training in small and medium enterprises (SMEs) for long-term, stable development, as it enhances the quality of human resources and improves overall productivity and competitiveness. The paper discusses the role of corporate culture in SMEs, stating that cultivating a positive corporate culture can enhance cohesion, employee loyalty, motivation, and job satisfaction, ultimately fostering productivity and innovative outcomes. It also highlights that a strong corporate culture can be a unique selling proposition for SMEs in attracting and retaining top talent. Additionally, the paper mentions the significance of cooperative banks in rural financing and their growing activity in metropolitan areas, contributing to the local economy and employment generation.

How the method for delivering loans impacts on the economic efficiency of microfinance institutions

AbstractThe aim of this research has been to analyse how the method employed for lending can affect the cost efficiency of microfinance institutions (MFIs) since innovations for lending have been introduced in the sector in the last years and there are not empirical studies to analyse the actual impact of it. The improvement of MFIs' cost efficiency is very important for these institutions to achieve their financial self‐sufficiency and be sustainable in the long run. The data employed in this analysis have been an unbalanced panel composed of a sample of 1017 MFIs for the 2008–2018 period and collected from the microfinance information exchange (MIX) database. Our results also show that community or group‐lending methods, as village banking and solidarity groups, have a positive effect on the MFIs’ cost efficiency versus traditional methods based on individual lending. In addition, we have found that MFIs with a higher proportion of borrowers in rural areas are more cost efficient than institutions with more borrowers in urban areas, although community or group‐lending methods have a larger positive effect on MFIs’ cost efficiency in urban than in rural areas.

“Searching for order at all levels”. Antonio Lima-de-Faria (July 4, 1921 – December 27, 2023)

“Searching for order at all levels”. Antonio Lima-de-Faria (July 4, 1921 – December 27, 2023)

ANALISA DAMPAK RASIO KEUANGAN PERBANKAN TERHADAP PROFITABILITAS BANK BERDASARKAN MODAL INTI (KBMI) PADA KELOMPOK BANK DI INDONESIA

This research aims to investigate the analysis of the relationship between banking financial ratios and profitability using the purposive sampling technique in the form of panel data. The research sample was derived from 47 banking sectors listed on the BEI stock exchange from 2013 to 2022, with a total of 470 firm-year observations. The regression method employed was the Ordinary Least Squares (OLS) data panel, and it underwent tests for regression model selection, classical assumptions, robustness, and the Generalized Least Squares (GLS) method. The research findings indicate that CASA is a determining factor for banks in general to enhance Return on Assets (ROA), especially in the small bank group (KBMI 1 and 2). BOPO has been a hindering factor for banks in general to achieve profitability (ROA and ROE) over the past 10 years. In the pre and POST economic crisis of Covid-19, the Loan to Deposit Ratio (LDR) is a hindering factor for banks in general to achieving profitability. Interestingly, as long as the economic crisis, the opposite is true, LDR became a determining factor in increasing profitability, especially in the large bank group (KBMI 3 and 4).

Sistem Informasi Produktivitas Dengan Metode Nearest Neighbor Bank Sampah Di PT Anugrah Alam Manunggal

This research is intended to design a waste bank information system through an action research approach. The object in this study is a group of waste banks under the auspices of the Guwosari Training Center, Bantul Regency. The new system built will strengthen ease of use (easy to use). Two things are proposed in this study, namely improvements to the waste bank manual information system that is already running as an initial diagnosis and the transition from the manual recording system to digital recording through computer devices (applications) with centralized data in one database.

The Sinking of HBOS: An Invaluable Lesson to the Contemporary Banking and Finance Sector

HBOS plc, a UK-based financial institution, initially appeared as a remarkable success story in the banking industry. 2001 marked a pivotal moment when Halifax and Bank of Scotland joined forces to create HBOS. For the subsequent six years, it achieved substantial double-digit profits, solidifying its position. In 2007, the bank’s market capitalization soared to an impressive £40 billion. While HBOS garnered accolades from analysts and brokers for its apparent success, beneath the surface, its business model proved susceptible to economic fluctuations due to what was identified as a flawed strategy and inadequate risk management practices. These critical shortcomings left the bank ill-prepared to navigate the global financial crisis. In October 2008, HBOS faced a severe crisis and ultimately merged with Lloyds Banking Group. This case delves into the intricacies of HBOS’s strategy, internal and external governance issues and the changing business environment. It serves as an invaluable tool for students seeking to comprehend the factors that led to the company’s downfall. Several pressing questions are raised, including the role of accounting improprieties, the effectiveness of the risk management system, internal governance and the inability of the board and auditors to foresee the impending challenges within the company.

How to make a SPE resolution strategy work in the EU

Abstract When dealing with the resolution of a banking group under EU regulation there are two different approaches: Single point of entry (SPE) versus Multiple Point of Entry (MPE). In a MPE strategy, the resolution authority is taking separate resolution actions at the level of individual legal entities of the group. In a SPE strategy, the resolution authority is taking a resolution action at the level of a single entity, usually the parent undertaking, which, consequently, becomes the so called “resolution entity” building together with its subsidiaries the “resolution group”. The general idea in a SPE strategy is, that losses at subsidiary level are first streamed up to the parent undertaking (resolution entity), i. e. capital is streamed down from the parent undertaking to the subsidiary to cover its losses and ensure its recapitalisation. This leads to losses at the resolution entity level, which, if the resolution entity meets the conditions for resolution, are taken care of by applying resolution tools to the resolution entity. This procedure is not necessarily a two-step approach but could also be completed in one go. In the following, we focus on different ways to upstream losses from the subsidiary to the parent undertaking and to recapitalise the subsidiary.

Pengaruh Macroeconomi dan Bank Specific terhadap Non- Performing Loans pada Bank KBMI 3 yang Terdaftar di Bursa Efek Indonesia

This research aims to examine the influence of internal banking factors as measured by the inflation rate, growth rate of gross domestic product, interest rate, bank size, return on assets, equity to assets, and credit growth on non-performing loans in the 13 conventional banks referred to in Bank Group According to Core Capital 3 listed on the Indonesia Stock Exchange (BEI) for 7 years (2015-2021). The data in this research are quantitative data obtained from the annual reports of banks included in the Bank Group based on Core Capital (KBMI) 3 in Indonesia which are available on the official website of the Indonesia Stock Exchange (www.idx.co.id), and the official website owned by each bank for 7 years (2021-2015).

PUBLIC HEALTH EXPENDITURE AND MATERNAL MORTALITY IN NIGERIA

This study examined the effect of public health expenditure on maternal mortality in Nigeria from 2002 to 2021. To achieve this objective, the study utilized data on maternal death, total government expenditure on health, and migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries from OECD Health Statistics, 2021, WHO, UNICEF, UNFPA, World Bank Group, the United Nations Population Division, and Central Bank of Nigeria Statistical Bulletin. The study employed an Autoregressive Distributed Lag (ARDL) Bounds testing technique for data analyses. The result revealed that in the long run, total government expenditure on health has a negative and significant relationship with maternal mortality in Nigeria. Meanwhile, the migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries have a positive and significant relationship with maternal mortality in Nigeria. In the short run, total government expenditure on health has a positive and significant relationship with maternal mortality in Nigeria. At the same time, the migration of doctors and nurses trained in Nigeria - doctors and nurses trained in Nigeria but working in other countries has a negative and significant relationship with maternal mortality in Nigeria. Based on the findings of this study, it is recommended here that the government should step up investment in all components of health infrastructure to cope with the explosive population growth requiring medical services in Nigeria. Put differently, a crucial effort should be made by the government to channel more funds to the health sector in order to improve health standards, reduce the mortality rate and hence the life expectancy of the citizens since a healthy population and workforce is a major ingredient for rapid and sustainable productivity and growth.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0004/a.php" alt="Hit counter" /></p>