Presence Of Banks Research Articles

The Impact of Financial Development and Macroeconomic Fundamentals on Nonperforming Loans among Emerging Countries: An Assessment Using the NARDL Approach

The relationship between financial development indicators and non-performing loans (NPLs) has garnered significant attention, especially in emerging countries. The puzzle of whether financial sector development increases or decreases Non-performing Loans (NPL)s has not been resolved to the satisfaction of the curious mind. This research attempts to answer the above question by studying the asymmetric and symmetric association between financial sector development and NPLs, by utilizing the novel non-linear autoregressive distribution lag (NARDL) and the linear autoregressive distribution lag (ARDL) approach. Moreover, to make the study inclusive, we have added a series of proxies to measure financial sector development and macroeconomic vulnerabilities. Our main findings confirm that financial sector development and NPLs move together in the long run, and there is significant evidence of the asymmetric relationship. We infer that NPLs react differently to the negative and positive shocks of financial development and macroeconomic variables both in the short and long run. In the long-run positive shocks in financial intermediation, banking efficiency, banking depth, banking stability index, and banking non-interest income significantly impact the NPLs in emerging countries. The positive shocks of financial sector development (financial intermediation and size of banks) increase NPLs in emerging countries and vice-versa. Furthermore, regarding the macroeconomic variables, the positive shock of inflation, unemployment, and interest rate positively affect NPLs. The empirical analysis also concludes that in the long-run foreign bank presence is an insignificant factor affecting NPLs in the selected countries. This study emphasizes that, unlike the linear model, the non-linear model provides a more realistic and robust result by highlighting hidden asymmetries, which will help policymakers make appropriate strategic decisions.

Pengelolaan Bank Sampah Induk Berseri di Kecamatan Lubuk Pakam

This study aims to analyze best practices related to the ability of the Induk Berseri Waste Bank to maintain a relatively high income compared to other waste banks which generally have low incomes and its role in maintaining relationships with partners so that they are productive and in maintaining trust. This study uses a descriptive research method with a qualitative approach in the sense that the research is focused on the selected phenomena and wants to be understood in depth by using interview techniques. The results of this study are the presence of the Berseri Main Waste Bank in Lubuk Pakam District has encouraged smart city efforts, by inviting community cooperation to seek economic assistance for each partnered citizen. Creating awareness and knowledge as well as the ability to encourage participation in maintaining a clean environment. Some of the public opinions of the Berseri Parent Waste Bank are positive opinions with the helpful response to the Berseri Parent Waste Bank, while the obstacles that are still felt by residents who partner with the Berseri Parent Waste Bank are the frequent delays or delays in taking waste to residents and the prices are still low. The Main Trash Bank Berseri itself in its business really maintains a cooperative relationship with its partners and maintains trust so that it has a good image in the community.

Pengaruh Kontribusi Pembiayaan Mikro Modal Kerja di dalam Lembaga Keuangan Perbankan Syariah terhadap Pengembangan Usaha Mikro Kecil dan Menengah (UMKM) di Kota Palembang (Studi Kasus Bank Syariah Indonesia KC Demang)

Islamic banking is a banking system whose implementation is based on Islamic law. Financial institutions whose operational activities and products adhere to Islamic principles based on Islamic principles Quran and Hadith. The characteristics of Islamic banking are actually based on the core product of profit-sharing financing developed in the product musyarakah and mudharabah financing. The presence of Islamic banking should have a major impact on real sector growth. One unit Businesses that need to be developed to encourage real sector growth are Micro, Small and Medium Enterprises (MSMEs) which in the current national economy has a very important position, because of its contribution to employment and Gross Domestic Product (GDP). As well as its flexibility and toughness in facing an economic crisis. The role of working capital microfinance plays an important role in providing guidance to (MSMEs) to develop businesses, provide consulting on business development and facilitating the existence of a place of business in the Palembang city.

Themes in Southeast European Banking: A Review of Literature

In this paper we review the literature around three main research questions: the impact of foreign bank entry on net interest margins, financial system stability and credit supply. We also motivate the focus on Southeast European (SEE) countries. SEE economies although under the umbrella of European transition economies exhibit different macroeconomic and financial sector features from these countries and as such could benefit from a more focused empirical investigation. This could tailor and improve the recommendations given to policymakers in these countries which will help promote financial and economic development. Other countries in the world that share similar macroeconomic and financial sector features could benefit from the results as well. In addition, it is argued that SEE countries offer a unique laboratory for the proposed research questions because of the dramatic increase of foreign bank presence in these countries and their low level of financial and economic development. Keywords: foreign bank entry, Southeast Europe, net interest margins, financial system stability, credit supply DOI: 10.7176/EJBM/14-18-07 Publication date: September 30 th 2022

Effects of politically controlled boards on bank loan performance: an emerging economy perspective

PurposeIn this study, the authors explore the effects of politically controlled boards on bank loan performance in both state-owned commercial banks (SCBs) and private sector commercial banks (PCBs) in Bangladesh.Design/methodology/approachThe data consist of 409 bank-year observations from 46 sample SCBs and PCBs of Bangladesh for the period 2008–17. The authors apply ordinary least squares pooled regression with year fixed effect for baseline econometric analyses and generalized method of moments regression for robustness tests after addressing the endogeneity issue.FindingsThe regression results reveal that the presence of bank “boards controlled by politically affiliated directors” (PA) have significant positive effects on non-performing loans (NPLs). Similarly, the presence of “boards controlled by politically affiliated directors without substantial ownership interests” (PAWOI) show positive association with NPLs. In contrast, the presence of “boards controlled by politically affiliated directors with substantial ownership interests” (PAOI) exhibit an inverse relationship with NPLs. These findings support ‘agency conflict’ arguments and document that both PA and PAWOI are detrimental to bank loan performance in Bangladesh, while PAOI do not have significant effect on increasing NPLs.Originality/valueThis study contributes to the existing bank governance literature by providing evidence from an emerging economy perspective, where politically affiliated directors (PADs) exploit their positions for personal and/or political gain at the cost of other stakeholders by taking advantage of relaxed regulatory oversights and investor protections.

Developing Conflict: Elite Bias in the the Stakeholder Networks of World Bank Projects

World Bank development projects seek to increase the economic prosperity of communities and nations, as well as reduce conflict and promote peace. Yet, the selection, funding, design and governance of these projects is influenced by national governments who may favor certain identity groups over others. As a result, the economic benefits and costs of these projects may not be distributed equitably across stakeholder groups, which may aggravate, instead of moderate, conflict risk. Building on research that examines how elite bias in stakeholder networks (i.e., the favoring of elites at the expense of peripheral stakeholders) can exacerbate conflict, as well as past research that argues development aid can worsen conflict, we examine the impact elite bias in the stakeholder network of World Bank funded projects on conflict between stakeholders. Using a panel dataset of 763 World Bank funded projects across 124 countries and the media corpus of the Global Database of Environment Language and Tone (GDELT) from these countries, we measure conflict and elite bias in the stakeholder network of intergovernmental organizations at a micro-spatial level and analyze how the relationship between these constructs varies in the presence or absence of a World Bank funded project. We further explore the impact of the national composition of project contractors and the importance of state fragility. Our findings provide support for the argument that the World Bank and other financiers of development projects should take the distribution of benefits and costs across identity groups into account in their selection of projects.

Efficiency, foreign banks presence, competition and risk exposure of banks in middle-income economies

Efficiency, foreign banks presence, competition and risk exposure of banks in middle-income economies

Liquidity risk, macroprudential regulation and bank performance: empirical evidence from Vietnamese commercial banks

This paper attempts to cover the gap in the literature on the effects of liquidity risks and macroprudential policies on the performance of domestic banks in Vietnam. The two-way fixed effects and fixed effects generalized least squares methods are employed to analyze panel data from 31 Vietnamese commercial banks from 2006 to 2020. The results show that the liquid assets to total assets ratio has a positive effect on bank performance, which is measured by net interest margin. Stricter macroprudential regulations, which are represented by the short-term funding for mid-to-long-term loans ratio, improve domestic banks’ performance when taking the increase of foreign bank presence into account.

Optimal linearized operation of electric railway system in the presence of flexible renewable sources and switchable capacitor banks considering supply and demand sides’ uncertainties

The electric train (ET) is a great energy consumer in an electrical network, which regenerates a high amount of energy into the grid at the braking moment. Therefore, in this paper, the optimal operation of the electric railway system is proposed considering renewable sources, hybrid storage systems (battery and ultracapacitor units), switchable capacitor banks, and regenerative braking energy of ET at the same time to attain a favorable economic, environmental and operational condition. Renewable sources reduce operating costs and environmental pollution. The storage system is utilized as a flexible source along with renewable generations. The ultracapacitor stores the ET braking energy, and the capacitor bank regulates the voltage. The scheme minimizes the expected network operating cost, while the AC optimal power flow and other technical limits are considered. This problem is nonlinear, and a linearized approximation formulation is implemented to achieve a unique optimal solution with the best and minimum computation time. The unscented transformation method is used to model uncertainties of load, ETs’ energy consumption, and renewable energies. Finally, by evaluating the numerical results, it is illustrated that the efficiency of the proposed method simultaneously improves the economic, environmental, and operational features of the network.

Private credit in dual banking countries: Does bank ownership type matter?

AbstractThis study investigates how the effects of government and foreign bank ownership on private credit vary in the cases of Islamic and conventional banks using data extended from Claessens and van Horen (2014) of 29 dual banking countries from 1995 to 2017. In support of the political view of financial development, we find that the presence of state‐owned Islamic banks seem to be slightly less harmful to private credit flows than their conventional peers, particularly in the period after the global financial crisis. We also document evidence showing that countries with a larger foreign Islamic bank presence tend to have deeper credit markets postcrisis. However, such advantages may often be outweighed by the costs associated with increased penetration by foreign conventional banks.

The existence of waste bank management and the impact on the environment and trends of community consumption (Case study of the Ngudi Resik Waste Bank, Krecekan, Wironanggan, Sukoharjo)

The presence of a waste bank institution can encourage people to have the habit of sorting waste and change the paradigm that waste is worth. Furthermore, with a waste bank, the community can earn additional income from selling waste. The presence of a waste bank also has an impact on aspects of environmental cleanliness. In this study, researchers describe the environmental impact of the existence of a waste bank and the allocation of additional income earned by the community from the sale of sorted waste. The method used in this research is a survey by conducting interviews with the waste bank management to determine the management model. Interviews were also conducted with waste bank customers to obtain data on the amount of waste deposited and the customer's financial allocation. The number of customers in Dusun Krecekan is 19 people. Data analysis was conducted using descriptive statistical methods to describe the waste bank management mechanism and the portion of the community's additional income allocation from participation in waste bank activities. The presence of the Krecekan Ngudi Resik waste bank is the result of initiation from the community-driven by the desire to create a clean environment. Good waste bank management is the key to a sustainable waste bank. The presence and support of community leaders also play an essential role in the sustainability of the waste bank. The Krecekan Ngudi Resik waste bank has positively impacted environmental hygiene and the community's economy. Most people who become customers (78.9%) allocate money obtained from waste bank activities for consumption needs.

DOES ISLAMIC BANKING PROMOTE FINANCIAL INCLUSION AMONG WOMEN IN OIC MEMBER COUNTRIES?

Previously, women in Organization of Islamic Cooperation (OIC) member countries were reported to be more financially excluded compared to the global average. Hence, this study aims to have a closer look at the aspect of gender inequality in financial inclusion in OIC member countries. Specifically, it seeks to examine the role of Islamic banking in enhancing financial inclusion among women in selected OIC member countries empirically. This study frames its analysis based on annual economic and financial data for OIC member countries from several sources including the World Bank Global Findex and World Development Indicators for each respected country for the years 2011 and 2014 using ordinary least squares (OLS) estimation. The findings show significant improvement in the growth of women’s account penetration for 2014, suggesting Islamic banking deepening has had a positive effect on financial inclusion among women in the OIC member countries under study. The significant positive effect of Islamic banking presence and accessibility of Muslim women to financial services indicates pivotal role of Islamic banking in promoting financial inclusion among women, enhance economic activities for women and reduce gender gap in finance. The finding helps to promote gender equality, empowerment and financial inclusion among Muslim women in OIC countries through Islamic banking services. The findings call for Islamic finance industry players to expand their outreach to Muslim clients and help policymakers to define their role more clearly in expanding financial inclusion, Islamic or otherwise, to Muslim adults.

Benefits of local banking in local economic development: Disparities between micro firms and other SMEs

This paper provides new evidence on the benefits of local banking. Relying on a unique bank-level lending dataset covering 96 French counties from 2005 to 2013, completed by historical firm-level information on firm's main bank, our results reveal strong heterogeneities in the impact of local banking on SMEs' activity depending on firm size, both at the local market level and the bank-firm level. Bank proximity provides strong benefits only to micro firms, the smallest and most informationally opaque SMEs, through a higher presence of regional banks or of geographically focused banks, in both normal and crisis times. Further, we document an overall positive effect of long-lasting bank-firm relationship on SMEs economic activity in line with the continuation-lending hypothesis. Being loyal to either a regional or a national bank fosters micro firms value added, while this benefit only exists for larger SMEs which are loyal to a national bank. Furthermore, our results reveal a flight to quality phenomenon led by national banks in troubled times.

Banking proximity and firm performance. The role of small businesses, community banks and the credit cycle

ABSTRACT This article analyses the link between banking geography and firm performance, i.e. whether the proximity within banks and between banks and borrowers has a positive impact on firms’ Returns on Assets (ROA).Using a unique dataset of Italian manufacturing firms and banks from 2006 to 2011 and an instrumental variable approach to account for endogeneity, we investigate whether this effect increases with the presence of community banks and small businesses and whether the relationship changes over the credit boom and bust, which preceded and followed the Lehman Brothers collapse.We show that geographical proximity matters for firm performance especially when the presence of community banks is high and when considering small (micro) firms. During the credit boom, both functional distance and operational proximity seem to matter, whereas, during the credit crunch, operational proximity has a more relevant role compared to functional distance in becoming an important driver to increase firm’s performance.

Banking infrastructure and the Paycheck Protection Program during the Covid-19 pandemic

ABSTRACT In response to the Covid-19 pandemic, the US federal government distributed US$800 billion in Paycheck Protection Program (PPP) loans to small businesses to preserve employment. Since PPP funding was transmitted through private banks, the characteristics of the regional banking market may have unevenly affected the programme’s reach. This paper examines how variations in market concentration and the presence of community banks contributed to PPP disbursement in US counties. It finds that greater regional banking market concentration correlates with fewer PPP loans, but this negative relationship is mitigated by a greater presence of community banks in highly concentrated markets.

PENGARUH PERSEPSI RISIKO DAN DUKUNGAN PEMERINTAH TERHADAP MINAT PENGGUNAAN MOBILE BANKING: PERAN PEMEDIASI PERSEPSI KEGUNAAN

The Covid-19 pandemic has influenced the government to implement various policies as a form of support to break the chain of the spread of the Covid-19 virus. In addition, the presence of the Covid-19 pandemic requires people to switch from cash transactions to non-cash transactions to prevent exposure to the Covid-19 virus. Technological developments support this transition with the presence of mobile banking to facilitate non-cash transactions. This study aims to determine the effect of perceived risk and government support on interest in using mobile banking with perceived usefulness as a mediating variable. This type of research is quantitative research and uses a questionnaire to obtain data which is then processed using Structural Equation Modeling-Partial Least Square (SEM-PLS) software. The results of the study prove that risk perception has the most influence on interest in using mobile banking, while government support does not influence the use of mobile banking.

Effects of Heterogeneous Institutional Investors on the Performance of Portuguese Banks

Abstract Effective corporate governance is fundamental to the correct operation of the banking sector. This study examines corporate governance in terms of the effects of different combinations of institutional investors on the performance of Portuguese banks. Effects based on kind (e.g. type of institutional investor) and degree (e.g. institutional investor experience) are considered. The results of a crisp-set qualitative comparative analysis (csQCA) show that the simultaneous presence of banks and corporations as shareholders, and non-presence of financial companies can positively affect banks’ return on average assets (ROAA) and return on average equity (ROAE). This research provides a wider picture of possible impacts in terms of banks’ performance when there are different types of institutional owners. Lastly, the results are particularly relevant for the supervision protocols developed by the Bank of Portugal and the European Central Bank, in situations of changes of banks’ shareholders.

Gauging the Institution’s Potential Towards an Entrepreneurial University: The Case of a Philippine State University

The potential of a state university for entrepreneurial university transformation is determined in this study by using the mixed method, specifically the concurrent triangulation design. Strengths, weaknesses, challenges and issues are highlighted based on the guiding framework for entrepreneurial universities by the European Commission – Organization for Economic Cooperation and Development (EC-OECD). Middle level managers of the institution served as participants providing data through survey instrument and interviews. Results revealed that generally the university is Going Entrepreneurial, particularly in leadership and governance; organizational capacity, people and incentives; entrepreneurship development in teaching and learning; and pathways for entrepreneurs. It is Almost Entrepreneurial in its business/external relationships for knowledge exchange, and as an internationalized institution; and only in measuring the impact of entrepreneurial university that it is described as Initially Going Entrepreneurial. Challenges and issues identified that may affect the internal system consist political leadership openness to support development plans and projects; presence of internationally-popular eco-tourism, farm tourism, cultural and heritage tourism potentials; booming business atmosphere in the province and the region; availability of local and international scholarships and fellowships for staff and students; presence of commercial banks offering loan credits; and presence of private colleges and learning centers. Recommendations for internal policy consideration include the revisit and inclusion in the strategic plan of an entrepreneurial agenda; appropriation of budget to support the entrepreneurial projects or start-ups by the faculty, staff and students; and exploration of functional engagements and linkages with external (local and international) stakeholders and willing business partners, experts and entities who could help put up or invest on incubators, science parks and the like.

Analysis of Foreign Bank Presence Factor on the Factor of Economic growth Indonesia using Confirmatory Factor Analysis (CFA)

Indonesia is an emerging country which will be develop to industrial country. This paper examines the main implications about foreign bank presence on the Indonesia’s economy. We find that the Foreign Bank Presence has negative effect on Indonesia’s Economy. The determinant factor of foreign bank presence is Foreign Number and Capital Adequacy Ratio (CAR) can be used to confirm determinant factors of Foreign Bank Presence but Foreign Shares cannot be used to confirm determinant factors of Foreign Bank Presence. While, Gross Domestic Product (GDP) and Inflation Rate can be used to confirm determinant factors of Indonesia’s Economy. But direct effect of foreign number on Gross Domestic Product (GDP) is positive effect, and direct effect of capital adequacy ratio on inflation rate is negative effect.

Sediment bank contribution to form a vortex and maintain a deep scour hole on tidal channel meander in the Bahía Blanca estuary, Argentina

A wide range of processes determine the hydrodynamics and sedimentary balance in tide-dominated estuarine environments. Tidal channels can be subject to the most energetic processes. Therefore, changes in their geomorphology require continuous updates. Through oceanographic surveys, were collected in situ hydrodynamic, bathymetric, and sedimentological data in a section of the Canal del Medio in the Bahia Blanca Estuary (southwest of the Buenos Aires Province, Argentina) to examine the possible effect that the presence of a sediment bank can have on the tidal current pattern within a specific meander. An unusual elliptical deep scour hole was detected with a depth of 12.60 m in the thalweg of the meander (tidal range is about 3 m). Based on the data, it was found that the maintenance of the scour hole is possible because of a vortex forced by the presence of an elongated sandy bank connected to the tidal channel bank that acts as a hydrodynamic barrier to the currents, inducing the modification of the meander pattern.