International Bank Research Articles

A Lost Game of Bank Bargains: West Germany and International Banking Regulation between Bretton Woods and Basel I (1972–1988)

Abstract Current theories of financial regulation suggest expanding rules-based formal state intervention to promote international banking stability. Such policy solutions should then be global in scope. This article instead argues that principles-based informal co- and self-regulation through domestic (gentlemen’s) agreements underpinned West German bank internationalisation until the 1980s. The analytic narrative approach allows the tracing of the social dynamics of the German politics of regulation, drawing on unused primary sources: Coalitions between the German regulating and regulated actors were bolstered by a liberal domestic framework and bespoke national policies. In contrast, regulatory harmonisation through international prudential standards came with high domestic adjustment costs for the German banking sector. Thus, domestic makeshift solutions to deal with and internalise cross-border financial risks proved most workable.

Neuer Aufbruch ins globale Bankgeschäft: Die Personal- und Steuerungsprobleme der Deutschen Bank beim Einstieg ins internationale Investmentbanking

Abstract The article examines the genesis, perception and handling of the staffing and governance problems of Deutsche Bank, which stemmed from its entry into international investment banking in the mid-1980s and which have remained virulent into the bank’s recent past. Why was it not possible to prevent the blatant, extremely costly and permanently reputation-damaging breaches of rules by many investment bankers in this business area? An important explanatory factor seems to be the only half-hearted adherence to the concept of a global universal bank with integrated investment banking, while investment banking – which expanded strongly through the acquisitions of Morgan Grenfell (1989) and Bankers Trust (1998) – was de facto granted extensive autonomy within the group and a continuous but not precisely recorded transfer of resources by the parent company.

Does culture matter? Corporate reputation and sustainable satisfaction in the Chinese and German banking sector

AbstractCorporate reputation is important for all types of banks across the world, despite these countries differing culturally. Building on an extended corporate reputation model, we identify the key drivers of customer-based reputation and sustainable customer satisfaction in two culturally different countries, namely China and Germany. We also consider two reputation dimensions—perceived competence and likeability—and their effects on the target construct. Empirical data from 625 German and 734 Chinese commercial bank customers allow us to estimate the corporate reputation model with the partial least squares structural equation modeling (PLS-SEM) method, and by substantiating the relationships by means of a necessary condition analysis (NCA) and a predictive power analysis. By comparing the two countries’ results, we identify their cultural differences. Overall, we confirm the model’s relevance for the two cultures, finding that banks’ perceived attractiveness is the most important driver of both cultures’ customer-perceived bank reputation. By means of an importance-performance map analysis, we identify a large overlap between the two cultures’ set of important constructs, likeability’s much greater importance in Germany, and the perceived quality construct’s relevance in both countries. We contribute to research and scientific knowledge about corporate reputation models by identifying the similarities in and differences between two countries’ markets with respect to the banking sector, all of which have implications for international banks’ management.

Socio-economic and Demographic status of Emigrants’ Households of Baghchaur Municipality

This study deals with the “International Labour Migration (A Case Study of Baghchaur Municipality in Salyan District. The primary data was collected from the study area of Baghchaur Municipality. The general objective of the study is to examine the scenario of international labour migration pertaining to study area. Main objectives of the study are to examine the socio-economic and demographic status of emigrant's households, influencing factors, direction and magnitude, and the impact of emigration in the place of origin. The analysis and interpretation of data were carried out by using frequency tables, cross tabulation, with selected dependent and independent variables. International labour migration is seen in direction and destination with increasing volume in study side.
 Methods: Simple random sampling procedure was applied to collect the primary data and information about the emigrants by using questionnaire. Descriptive research design was used and the total number of international labor migrants were 118 from 100 households. There are 118 respondents were found whereas 111 were male and 7 were female.
 Results: India has the highest volume of emigrants and the flow is increasing now towards Malaysia from Nepal. Skilled migrant workers get high paid jobs. Reliability of human resource agencies have also played the crucial role in finding the work and wage. Amount, frequency and regularity of remittances depend upon the types of works, companies and the destination country. International money express, banks, and western union money transfer are mostly used channels for sending money. The rise in income is evident in the emigrant's household but the expenditure increasing. Unemployment, insufficient agricultural land and poverty are the key factors for emigration associated with origin. Due to the low level of education migrant workers get highly paid in destination countries compared to Nepal. Availability of unskilled works in the destination countries seems appealing to the low educated migrant workers.

Indian Banking Industry: Challenges and Opportunities

Traditional banking practices from the British era, through the reforms era, nationalization, privatization, and the rise of an ever-increasing number of international banks in India, all comprise a vast canvas that makes up India's banking industry's history. Thus, the development of banking in India has been a protracted process. Keeping pace with the trends, India's banking sector has also reached new heights. Banks' methods of operation have undergone a dramatic transformation as a result of technological advancements. The danger of a lack of work-life balance is particularly evident in the banking sector. When it comes to satisfying their clients' varying requirements, bank employees exert tremendous effort. Tightening deadlines and increased workloads mean that workers must prioritise the quality of their product. It's challenging to strike a balance between work and personal life in today's fast-paced, always-on society. Human resource quality directly impacts the success of the banking industry.

International banking regulation and Tier 1 capital ratios. On the robustness of the critical average risk weight framework

Under Basel III, the current international banking regulation, banks must maintain two Tier 1 capital ratios that treat risky assets differently. The Basel Committee uses the critical average risk weight (CARW) framework developed by the Bank of England to determine which ratio is the binding constraint. This methodology, which implicitly assumes that each asset is subject to a uniform shock, consists in comparing the implied average risk weight of a bank to a regulatory critical threshold. Using a stress test approach, we examine whether, and under which conditions, the CARW framework identifies the correct binding capital ratio. We find important errors that are attributable to a series of simplifying assumptions made by the regulator. We finally generalize the methodology used by the Basel Committee and show how our stress-test approach can be used to determine which ratio is binding when only a (single class of) asset(s) is shocked.

Drivers of cross‐border bank claims: The role of foreign‐owned banks in emerging countries

AbstractStudies of the determinants of cross‐border bank claims are based on the economic situations of the lending and borrowing countries—the traditional push/pull factors—but fail to take into account the situation of the international lending banks and the presence of their subsidiaries in emerging countries. They also fail to explain the huge decrease in cross‐border bank flows after the 2008 global financial crisis. In this paper, we analyse the determinants of cross‐border bank claims on a panel of 28 emerging countries and explicitly integrate banking determinants. Thus, we account for the financial situation of international lender banks and the existence of foreign locations in emerging countries as a potential pull stabilising factor. We show that the presence of foreign banks in emerging countries is clearly a factor of attraction for cross‐border bank claims. It remains when we explicitly take into account the 2008 crisis but to a lower extent and in favour of interbank loans. This may be proof of support from the international parent banks to their affiliates. Last, the financial situation of international banks, notably their liquidity and ability to respect prudential rules, also plays a role in their financing strategies in emerging countries.

Higher education system reforms in Ukraine: challenges for art education

Permanent reforms of the education system in Ukraine are conducting without high-quality strategic planning and scientific justification. It leads to stochastic processes, actualizes challenges and threats to the competitiveness of the high education industry, and the issue of many universities survival precisely of the number, permanence and groundlessness of the proposed reforms. In 2022 the Ministry of Education and Science of Ukraine announced another reform of higher education, which don't take into account the important role of culture as the pilar and basis for the Sustainable Development Goals achieving, and the requirements of the strategic documents of Ukraine's development. Special risks are created for higher art education, as a result of its marginalization, neglect of the importance of this education for social development and the peculiarities of the artistic higher education training. There is established that certain proposals for modern reforms, in particular regarding the list of fields of education and training, the standardization of scientific work accounting, do not meet the actual needs of society, and therefore the implementation of these changes is inappropriate. For the authorities an economy of budget funds is the main criterion for the effectiveness of reforms, and obviously these reforms do not supply the better provision of public goods por the people. Also, the priorities of the implemented reform are determined by the requirements of the loan agreement with the International Bank for Reconstruction and Development, the main target indicators of which are unknown to the public. At the same time, the proposed changes do not contain proper scientific justifications and assessments of the expected impact on the state's ability to perform social functions, in particular to guarantee higher education as a component of the state's security chain. And most importantly, its do not contain indicators of humanitarian development as a pillars of reforms. The need to revise the goal-setting procedure and approaches to the planning and implementation of the higher education reforms is proven. The important criteria for the effectiveness of reforms should be the systematic consideration of the important role of culture in social development and the human dimension of performance indicators, as well as the positioning of higher art education as a value-shaping component of the education system.

118.3: Two decades of experience: the evolution of international tissue banking and advanced therapies educational program.

118.3: Two decades of experience: the evolution of international tissue banking and advanced therapies educational program.

Board Characteristics and Bank Performance after the Global Financial and Economic Crisis – Do People Matter?

The study focuses on the impact of board characteristics on the performance of major international banks following the global financial crisis of 2008. Aspects such as the stability of governance structures, gender equality policies, and the correlation between board composition and key success indicators are analyzed. The relationships between efficiency, age, and gender of board members are explored, emphasizing the significance of dynamics in these structures for successful financial institution management. The study refrains from explicitly mentioning specific banks, providing insights into the broader issues surrounding governance in the post-crisis banking sector.

International banking facilities and bank value

International banking facilities and bank value

The Impact of Management Information Systems on Strategic Success: A Field Study in Islamic Banks Operating in Aden, Yemen

The study aimed to identify the impact of management information systems in its four dimensions (human resources, material resources, software, information security) on the strategic success in its three dimensions (survival, growth, adaptation) in Yemeni Islamic banks operating in the city of Aden (Tadhamon International Bank, Saba Islamic Bank, CAC Islamic Bank). The study adopted the descriptive analytical approach, and the study population consisted of the administrative leaders working in those banks, and their number was (56). The study used the questionnaire as a tool (f)or data collection, and it employed the statistical program (SPSS) for data analysis. The study reached a number of conclusions, the most important of which are: In general, there is an impact of management information systems on the strategic success, and there is an impact for each of the four dimensions of management information systems (human resources, material resources, software, information security) on the strategic success of the banks in the study population. The level of management information systems in banks provides the study population with a very high level on the variable itself and at the level of dimensions such as (physical resources, software, information security). Further, there is an impact of management information systems on strategic system at a high-level of a dimension such as (human resources). There is also an impact with regard to dimensions such as (growth, adaptation) and a very high level of impact on a dimension such as (survival). The study recommended that banks should make use of strengths, addressing points of weaknesses, seizing opportunities, and overcoming threats in order to achieve their objectives. It also suggested conducting another scientific study on the impact of management information systems in strategic control in other dimensions of management information systems and this can be determined according to the specialized functions of banks.

SUSTAINABLE BANKING AND ITS MAIN DETERMINANTS – EVIDENCE FROM THE SERBIAN BANKING SECTOR

Throughout the past decade, sustainability has been one of the most important topics among academics and within the business community. The adoption of ESG practice and the creation of holistic business models is on the agenda of the entire financial industry, predominantly among banking and investment entities. The paper aims to analyse the regulatory framework and current practice of sustainable business models with respect to the most important international banks operating within the Serbian economy. The analysis encompasses the descriptive assessment of ESG regulations, the reporting framework in the sustainability domain, and the quantitative analysis of ESG metrics and their statistical relationship with banks’ financial performance. Due to various limitations, such as a lack of quantitative metrics and an unstandardized reporting practice, research was performed on a sample of four international banks operating in Serbia, for the period between the years 2015 and 2021. The statistical results of the regression analysis do not show a significant relationship between ESG metrics and the financial performance of the examined banks.

The countercyclical capital buffer and international bank lending: Evidence from Canada

We examine the impact of the recently introduced Basel III countercyclical capital buffer (CCyB) on foreign lending activities of Canadian banks. By exploiting the variation in CCyB rates across countries, we overcome the identification challenge associated with limited time-series evidence on the CCyB's use in individual jurisdictions. We show that in response to a 1-percentage-point tightening announcement in a foreign CCyB, the growth rate of cross-border lending between Canadian banks and borrowers abroad decreases by 12-17 percentage points. The direction of this effect is likely driven by the CCyB's unique reciprocity rule, which also subjects foreign banks to domestic regulation.

The impacts of macroprudential regulations on extreme episodes in bank flows: Whose policy helps and whose policy harms?

Using a sample of pairwise bank flows from source countries to recipient countries, we find mixed evidence on how macroprudential policies implemented by different counterparties affect the incidence of extreme episodes (i.e. surges or sudden stops) in international bank flows. Macroprudential regulations adopted by the capital recipient country contribute little to mitigate extreme episodes. Capital source country's regulation exacerbates the occurrence of surges and sudden stops. Tightened macroprudential stance of the United States demonstrates efficacy in mitigating both types of extreme episodes.

Optimal Loan Portfolio under Regulatory and Internal Constraints

The environment surrounding banks is becoming increasingly severe. Particularly, to prevent the next financial crisis, Basel III requires financial institutions to prepare higher levels of capitals by 1 January 2028, and the financial stability board (FSB) suggests the risk appetite framework (RAF) as their internal risk management. Hence, efficient usage of their own capitals for banks is more important than ever to improve profitability. Under such circumstances, this paper is the first to consider an optimization problem for a typical loan portfolio of international banks under comprehensive risk constraints with realistic profit margins and funding costs to achieve an efficient capital allocation. Concretely, after taking concentration risks on large individual obligors into account, we obtain a loan portfolio that attains the maximum profit under Basel regulatory capital and loan market constraints, as well as internal management constraints, namely, risk limits on business units and industrial sectors. Moreover, we separately calculate credit risk amounts of the internal constraints in terms of regulatory and economic capitals to compare the optimized profits. In addition, considering sharp increases in default probabilities of all obligors as in the global financial crisis, we perform a stress test on the optimization results to investigate the effects of changes in risk amounts and profits. As a result, we propose to unify risk constraints on the business units and industrial sectors by using credit risk amounts in terms of economic capitals.

The value of reverse knowledge transfer: Case of Austrian Bank subsidiary in Slovakia

This research focuses on reverse knowledge transfer from Central Europe to Western Europe by analyzing the contribution of a specific Slovak subsidiary to MNC knowledge. It explores the first digital bank created in Slovakia, its origin, expectations, results, and expertise transmitted from the daughter company to the Austrian headquarters. The paper analyses the situation of Raiffeisen Bank International, headquartered in Vienna, and its digital daughter company ZUNO founded in Slovakia in 2010. It identifies the learnings transferred to the parent in digital banking, marketing, operational, HR, and strategic management. The authors also study subsidiary integration within MNC, alignment of its structure and processes with the parent and conclude that the new knowledge generation was especially valuable in digital banking, at work with new client segments, in implementing new forms of marketing, working with new technologies, creating new structures, and transferring them to the other foreign markets.

ADAPTIVE STRATEGIES FOR DIGITAL TRANSFORMATION: A COMPARATIVE STUDY OF BANKING INNOVATIONS AND ROADMAP FOR BANKS IN INDIA

This research paper explores adaptive strategies employed in digital transformation within the banking sector, presenting a comparative analysis of innovative practices and proposing a roadmap for banks in India. The digital era has prompted banks to reinvent their operational paradigms, necessitating agile approaches to remain competitive. Through an in-depth examination of banking innovations across global contexts, this study elucidates diverse adaptive strategies that institutions have undertaken to navigate digital transformation challenges. Focusing on the Indian banking landscape, the paper examines the unique dynamics and challenges faced by banks in this rapidly evolving market. By scrutinizing successful case studies from both domestic and international banks, it identifies key drivers and barriers for digital transformation adoption. Synthesizing these insights, the study develops a comprehensive roadmap tailored specifically for banks in India, offering a strategic framework to guide their digital transformation journey. The findings of this research focus on effective strategies, organizational restructuring, technological integration, and customer-centric initiatives that can be harnessed by Indian banks to achieve sustainable and impactful digital transformation. By synthesizing global best practices with local nuances, the proposed roadmap provides a robust guide for banks in India to not only adapt to the digital age but also thrive within it.

When the available blood supply mismatches the needs of the patient.

Substantial regional differences in the genetic patterns related to blood group have been observed across different continents. This diversity means that the blood supply, as an essential part of patient care, is increasingly impacted by global migration. Consequently, the Austrian blood donor population does not match the immigrant patient population. This mismatch is likely to result in the formation of alloantibodies to red cell antigens in the chronically transfused. Subsequently, major difficulties in providing compatible blood emerge. The study included patients of African origin (n=290) and Caucasians who represent the Austrian donor population (n=1,017). Genetic typing was performed for up to 69 blood group polymorphisms with a multiplex sequence specific primer-PCR including high frequency antigens and antigens for which antisera are not commercially available. By assessing differences in antigen frequencies between the two populations, and using these data for prophylactic matching, we aim to develop tools to increase the quality of patient care. Results indicate various and significant differences (p<0.0001) in antigen frequencies between African patients and the European donor population, especially in the MNS, Duffy, Knops and Rhesus systems. Our data highlight the importance of matching the donor population to the demographics of the patient population. In addition, it underlines the need to recruit donors of African origin and to focus on the upcoming challenges, such as malaria semi-immunity and a significantly higher rate of infectious disease in this population. It is also recommended to apply extended genetic typing to detect rare blood types, and (cryo)storage of rare blood in national and international rare blood banks. Co-operation with regional blood banks should also be encouraged.

The role of governance in enhancing investment decisions in capital

Many major international companies, banks and financial institutions in developed countries, led by the United States of America, have been exposed to bankruptcy and financial shocks, similar to Enron and the famous Wordcom company. The most important reason for this is the collusion of the managements of these companies and banks with external auditing firms, led by the international auditing firm Arthur Anderson. Which could have been avoided if the role of governance was implemented effectively. Since then, the concept of governance has become one of the most important relatively modern concepts that have increased in importance in the public and private sectors, because of this concept of great importance in managing companies, protecting the rights of shareholders and stakeholders, and achieving the principle of accountability when errors occur. The large size of companies on the one hand, and the emergence of transcontinental (multinational) companies on the other hand, imposed on local companies the need to improve their performance further to strengthen their market value, because the market value of the company is considered important for shareholders, and this requires departments to improve conditions The internal structure of the company or the financial institution alike, including the basis of tangible assets in addition to the intangible (intellectual) assets, and supporting the implementation of the role of governance, which is supposed to enhance the company's performance and support its competitiveness. As a result, all public and owned institutions have become Looking for the content of the capital and the best ways to invest in it, especially with the difficulty of ascertaining the expected future returns from it, due to the difficulty of predicting its life span and the difficulty of measuring or evaluating it. The researchers believe that the recent environmental changes surrounding institutions can be one of the roles of governance because they affect and are directly affected by the operations of institutions, and this comes by highlighting the decisions of managers to invest in capital as an effect resulting from the application of governance roles that work to address deficiencies in control systems. which will assist management in ensuring efficient performance, defining its appropriate strategy, and improving mutual relations between the institution, its customers and suppliers, which may have a significant role in increasing capital efficiency