Banking Segment Research Articles

Типологизация рисков экономической безопасности банковской системы и методические подходы к их оценке

The aim of the study is to identify the advantages and limitations of the system of standards used in modern Russia as threshold values of indicators of threats to the economic security of the banking system. During the study, we developed the conceptual apparatus of the theory of economic security management, determined the composition of risks of the sustainable development of the banking system and analyzed indicators of threats to its functioning. In accordance with the goal, we presented interpretation of the conceptual structures “economic security of the banking system” and “banking security”. We carried out scientific research using the gnoseological potential of the theory of economic security, the theory of credit and banking, and the theory of risk management. To solve the research problems, we used methods of economic grouping, economic comparison (comparison), abstract-logical method, etc. The use of these methods made it possible to present a typology of risks and threats to the economic security of the banking system, as well as to analyze the methodological approach adopted by the banking segment of the Russian economy to determine threshold values of economic security indicators based on the use of standards. These standards are based on the accounting of indicators of capital adequacy level and indicators of return on capital. We formulated the advantages and disadvantages of this approach taking into account the interests of owners, managers and clients of banks and non-bank credit organizations. It is necessary to develop a methodology for determining the level of risks of the sustainable development of the banking system, taking into account the increase in the level of uncertainty of environmental factors. The obtained conclusions are a starting point for further study of indicators of threats to the economic security of the banking system and justification of their thresholds.

The civil law form of musharakah as an instrument for direct participation of the Islamic bank in capital: A retrospective analysis and modernity

Conventional banks, which operate under the conditions of interest capitalism, no longer dominate the financial sector. In the 21st century, Islamic banks, which provide services on an interest-free basis, have become their main competitors. In recent years, Islamic banking has grown rapidly even though 30–40 years ago it was only a regional phenomenon that could be found in countries with a predominantly Muslim population. The dispersal of capital by scaling a separate interest-free banking segment is now on the agenda of the Islamic world. It is stimulating the growing social demand for a fair distribution of resources within the community, as well as sustaining, at the same time, resilient economic development. However, the activity of Islamic banks remains a poorly studied and understood phenomenon within the circles of Russian legal science. In this article, the authors reveal the legal nature of the participation transaction involving shirkat al’-inan, while attempting to clarify the notion of using musharakah as a form of civil law, derived from shirkat al’-inan, within the Islamic banking system.

Implementation and impact of sarfaesi act 2002

Abstract: Banks are the foundation of any nation as they are inescapable for the monetary advancement of a nation. Investors are the absolute entirety of any business. Banks are delegates between the investors and borrowers. This connection separates when the borrower neglect to reimburse the vital and premium sum; subsequently the banking segment concentrate on the issue of Non-Performing Assets. So far as India is worried, before 2002 banks have no alternative other than implementing the security through a court/tribunal, to recoup its duty. On the suggestion of Narasimham Committee –II SARFAESI Act 2002 came as a sigh of relief for the banking sector. This demonstration enabled the banks and budgetary organizations for the procurement of the secured resources of the borrowers held with the bankers at the time of availing loans. This paper endeavors to concentrate the execution and effect of SARFAESI Act 2002 for the administration of NPA in Indian Banking. The articles and papers published in different business journals, magazines, newspapers, periodicals were studied and data available on NPAs recovery have been used for analysis. Statistical tools like percentages used for analysis. At first DRTs performed well, however their advance was endured when they get overburdened with the vast number of cases alluded to them. Keywords: Economic Development, Inevitable, Narasimham Committee-II, SARFAESI ACT 2002, Secured Assets.

Internet banking in Ukraine is an innovative development of the banking sector

The use of Internet banking by Ukrainian banks has been explored in the article. The online banking market research in the field of Internet banking is relevant, because this area of the modern banking world is considered to be promising and innovative. The state of the Ukrainian Internet banking market has been researched: the number of banking institutions that use Internet banking, the list of services offered on-line, the quality level of these services and the operation of the system as a whole, target groups of consumers. Banking organizations give customers the choice of access to various types of online services, the most popular of which is remote service today. The future prospects and directions of further development of Internet banking in Ukraine have been analyzed and concluded in this article. The range of questions connected with the distance banking services and the forms of distance banking services have been determined. The development of remote banking services is having an ever-increasing impact on existing legal norms of banking services, forcing them to adapt to new technological conditions for the provision of banking services. Automation of the bank’s ongoing work by serving legal entities and individuals reduces its internal costs and improves the quality of customer and partner services. Thus, Internet banking is strategic for any bank because, ultimately, the indicators determine its competitive position in the financial services market. Internet banking has become a part of everyday life of Ukrainians and Internet banking is well-implemented in Ukraine and real-time instant payments are established. The prognosis of the development of Internet banking is quite optimistic. The May-future plans translate all the services provided by the bank into the online process and this should provide a great alternative to a visit to the bank branch without a queue. Already, it is advisable for a virtual bank to serve clients from any region, in Ukraine, such has been in existence for two years, "Monobank". Internet banking is a promising and fast-growing segment in the banking segment.

In the Shadow of Banks: Wealth Management Products and Issuing Banks’ Risk in China

We study the rise and risks in bank issuance of Wealth Management Products (WMPs), which are off-balance-sheet substitutes for deposits without the regulatory interest rate ceilings and constitute the largest shadow banking segment in China. We show that competition for deposits has a causal effect on the WMP issuance of small and medium sized banks (SMBs), where we instrument deposit competition by SMBs' geographical exposure to the large (Big Four) banks. The Big Four banks substantially increased their loan supply to support the RMB 4 trillion stimulus initiated in response to the global financial crisis, and thereafter grew more aggressive in the deposit markets in order to stay below the regulatory ceiling on the loan-to-deposit ratio. In response, SMBs issued more WMPs and more frequently, besides also establishing fewer branches in cities with greater competition from the Big Four banks. We find that this growth of WMPs imposed rollover risks for all the bank issuers, as reflected in higher yields on new WMPs, higher borrowing rates in the inter-bank market, and adverse stock market performance of WMP-issuing banks on days with heightened rollover risks.

When the team potency needs self-efficacy and adaptive selling

Objetivo: Sugerimos que o efeito da potência do time no desempenho não é somente direto, mas também mediado pelos mecanismos de autoeficácia e venda adaptativa. A Teoria Social Cognitiva explica essa mediação em série, pois o indivíduo que possui crenças nas suas habilidades de vendas (autoeficácia), molda seu comportamento congruente ao do cliente (venda adaptativa). Como consequência, os resultados de vendas são melhores.Método: Foram coletados dados com funcionários da linha de frente do segmento bancário, que, por meio de análises multivariadas, confirmam as expectativas dos autores, para o desempenho individual e do time.Originalidade/Relevância: A Teoria da Efetividade do Time tem mostrado que a potência do time aumenta positivamente o desempenho individual, contudo pouco se sabe sobre sua influência no desempenho do grupo. Em complemento, ainda é necessário compreender o poder explicativo do efeito da potência no desempenho.Resultados: A potência influencia o desempenho tanto individual quanto do time por meio da autoeficácia e da venda adaptativa.Contribuições teóricas/metodológicas: Este trabalho apresenta um avanço na literatura ao relacionar construtos do time com elementos individuais para a obtenção de desempenho individual e do time. Em complemento, contribui com a Teoria Social Cognitiva e com a Teoria da Efetividade do Time, ao elevar o poder de explicação da potência do time na determinação do desempenho de vendas.

Fluvial Processes and Channel Stability of the Torsa River, West Bengal (India)

Fluvial processes such as bank erosion plays an important role to change the channel stability of the Torsa River in the downstream region. The present study was focused on stream stability assessment of the Torsa River. The study area is situated between the downstream of the Jaldapara Reserve Forest and confluence of Kaljani River. Data of different parameters about 64 bank segments of the Torsa River were prepared using the field work techniques for assessing the stream bank conditions using lateral, vertical and overall reach stability models. The individual results of BEHI and NBS ratings show that out of 64 bank segments only 35 and 19 bank segments classified in higher categories. Overall lateral stability analysis shows that most of the sample bank segments are in an unstable condition. All bank segments are vertically unstable and degrading. Overall reach stability analysis shows widespread instability. BEHI and NBS results are almost similar for most of the bank segments and therefore, BEHI and NBS can be suitable bank erosion hazard predictive models in the study for channel stability analysis.

Рынок кредитных карт в России: мифы и реальность

<span>В статье опровергаются распространённые в настоящее время мифы о функционировании отечественного рынка кредитных карт в области: а) малозначительности данного сегмента банковской деятельности; б) «обычной» стоимости привлечения заёмных ресурсов; в) простоты и выгодности использования льготных беспроцентных периодов (грейс-периодов); г) низкого влияния на рост закредитованности заёмщиков; д) возможности использования неактивированных карт в качестве стратегического финансового резерва; е) экономической привлекательности недавно появившихся и активно распространяемых карт рассрочки; ж) зарубежного опыта функционирования рынка кредитных карт в развитых странах (на примере Великобритании). На основе проведённого анализа сформулированы ключевые проблемы, препятствующие эффективному развитию рынка кредитных карт в России на современном этапе, и предложены дискуссионные пути их решения.</span>

Determinants of Profitability in Banking Industry: A Case Study of Indonesia

The purpose of this study is to investigate the determinants of profitability in Indonesian banking industry. This research defines profitability as basic earning power (BEP) and return on equity (ROE) with variables like basic condition, market structure, banking characteristics and performance as its determinants. Both credit market and deposit market channel of Indonesian banking were used to analyze the data. The Structure-Conduct Performance (SCP) paradigm was used to offer theoretical perspective. Data was collected through purposive sampling technique, randomly picked from Indonesian banks financial statements during 2001-2014. The dynamic panel GMM-Arellanno Bond was used as the tool analysis. The results show that basic condition, market structure, banking characteristic, and performance significantly influence profitability. Based on this result, the study recommends that Indonesian banking segment should improve its market structure through enhancement of performance particularly that of individual banks. It also recommends that regulations and policy planning of national banking industry should be directed to retaining and increasing profitability without relying on market power, nor requiring collusion or high interest to get higher profit. The implication of the current research will be seen in judging the durability of bank profitability and finding means to make it strong enough despite the influence of crisis, money market and inflation, although it may be still sensitive to exchange rate volatility.

АКТИВИЗАЦИЯ ФОНДОВОГО РЫНКА КАЗАХСТАНА НА ФОНЕ НЕЭФФЕКТИВНОСТИ ЕГО БАНКОВСКОГО СЕКТОРА

In the face of a decline in the efficiency of banking sector, a stock market can be a key source of business financ­ing and the driver of economic growth in the Republic of Kazakhstan at current stage. Nevertheless, banks are at the same time the main participants of the stock market. The article discusses some of the internal indicators of the banking segment, which adversely affect the real economy and the financial market, such as the increase in problem loans. Definitely, the deeper financial relations are, the smaller the index of non-performing loans (NPL) is. Also, im­balances in lending to the Kazakhstan economy increase potential inflation, etc. We analyzed the tightness of the re­lationship between rising inflation and increasing money supply, as well as money supply and consumer price index through the correlation. In the article, we present how the stock market develops and activates in context of liberal­ization and stimulation of its main participants, on the back of the banking sector destabilization.

Credit risk management and business intelligence approach of the banking sector in Jordan

Banking segment is one of the ultimate key segments that support the sustainable economic progress in Jordan. Hence, banks in Jordan are considered as tremendously significant financial establishme...

Business Activity and Assessment of the National Banking System in Terms of the VBM Concept

The reform of the Russian banking system is being stalled due to the imperfection of existing methods of assessing both the whole market value of business and its banking segment. This circumstance restrains the business activity of Western investors in the Russian financial market, provokes momentary speculative sentiments in it and strengthens crisis factors. The purpose of the research was to reveal the relevance and the possibility of applying the VBM concept, recognized and accepted in the majority of developed economies, to the banking business. The analysis of the works of foreign and domestic authors shows the need for further Russian theoretical developments. It is proved that the banking business market in Russia is undervalued. Based on the aggregate analytical data, the free cash flow to equity (FCFE) of the banking system is calculated. Based on the net profit of the banking system, its market value and the range of values in which it can be found are estimated. It is concluded that the growth of the Russian banking system measured in terms of capital and assets does not lead, as a minimum, to the growth of the market value, and, as a maximum, is accompanied by a decline in the market value. The prospects of the practical use of the VBM concept both for individual bank management and for the industry in the whole are substantiated.

An Analysis and Comparison of the Commercial Bank Competition Regimes in Lithuania and Denmark

[full article and abstract in English]
 The article itself is focused on the empirical researches that had challenged two different operational areas of the same entity, with a special emphasis on the challenges and opportunities for the banking segments of Lithuania and Denmark. The influencing factors of the banking sector within these two countries have been analyzed and compared. We have delved into the issue that the successful standing of a parent company within its home area of operations is not by default a guarantee of success for its foreign branch or subsidiary. The decisive factors for a successful competitive approach within the banking segment are compared on the national levels of Denmark and Lithuania.

Структурно-функціональна деформація фінансового сектора в економіці України

A full-fledged financial sector can play a significant supporting role in the economic development of the country. Therefore, it is an actual question for financial researchers to make a proper assessment of the current role of national financial sector in supporting economic development in order to identify the existing bottlenecks and find opportunities to improve the overall efficiency of the financial sector in executing its social, economic and innovative functions. For that reason, the article studies the change in the role of Ukrainian financial sector in supporting the economic development in 2003-2017. The author analyzes such parameters as financial depth of financial market segments, intensity of capital accumulation and redistribution of savings through the financial sector. The article also analyzes the index of debt load (Credit-to-GDP) in the Ukrainian economy and identifies gaps with the Credit-to-GDP long-time trend line, which shows a significant lack of credits in the economy. The latter allowed determining the influence of the Ukrainian credit market on the support of the economic growth in this period. Conclusions are made about the characteristics of the financial sector's role and its impact on the allocation of financial resources in the real sector. It is noted that the banks remain the main segment of Ukraine's financial sector. In the bank segment, a predominant share of assets belongs to the state as government and regulator. At the same time, the relative sizes of the other segments such as insurance, stock market and non-banking deposit and credit institutions remain insignificant. However, even in the banking sector, the parameters of intensity of capital attraction, monetization of the economy and financial depth have been declining for a long period of time since the start of the crisis. The same is happening to the Credit-to-GDP indicator whose current state reflects the weak credit support in the economy and a necessity of measures to stimulate credit growth.

Directions of development of bank technologies applied in the russian market of retail credit services

The relevance of the research is determined by the focus of the banking segment on digitalizing banking services, the gradual transition from the development of banking products based on the needs of certain social strata and groups to individual selected products, taking into account the behavior and structure of the client's balance, which involves the active development of data collection technologies and introduction of advanced systems of protection of the client's funds and confidential information. In this article, we present new banking technologies that can increase the efficiency and security of lending. In addition, we consider the mechanism affecting technologies, supply on the markets of IT services, their prospects for further application and development. There are comments of experts and bank employees about prospects of these technologies. The study of modern technologies applied by individual banks in Russia allowed the authors to identify key trends in the technological re-equipment of banks as well as explore the advantages and disadvantages of already tested and mastered technological solutions.

The Dark-Side of Bankss Nonbank Business: Internal Dividends in Bank Holding Companies

We show a dark-side view of internal capital markets in which one segment exploits the funding advantage of another profitable segment to relax its financial constraints. Results demonstrate that bank holding companies (BHCs) shield their nonbank segments, and not their bank segments, from inflexible external dividend policies. Further, bank internal dividends are used to support nonbank segment expansion. We show that BHCs whose nonbank activity had been constrained prior to the passage of the Gramm-Leach-Bliley Act increased their bank segments’ payout ratios by 12 percentage points relative to those that had not been constrained.

The segmental information disclosures in accordance with the requirements of IFRS 8

This research purposes at identifying the level of segmental information disclosure in the annual financial reports of the banks operating in Iraq for the period 2016, through the use of indicators prepared in accordance with the requirements of IFRS 8. The significance of the research stems from the reputation of objective information provided by the segmental financial reports that contribute to the addition of a new type of accounting information on the performance of the bank's segments to meet the needs of the financial reports users. However, in accordance with the research findings, this research presented a set of recommendations, the most important is the necessity of the banks operating in Iraq to comply with all the requirements of the segmental information disclosure that are in line with the requirements of IFRS 8.

Influence of perceived integrity and perceived system quality on Generation Y students’ perceived trust in mobile banking in South Africa

Mobile banking represents an important addition to retail banks’ digital banking channels and a salient tool for servicing both current and future customers. However, given the cybernetic nature of mobile banking, there is a certain degree of uncertainty and perceived risk associated with the use thereof. This uncertainty and perceived risk elevate the importance of trust in fostering mobile banking adoption. The Generation Y cohort, which encompasses today’s youth, represents an important current and future banking segment and their adoption of mobile banking channels could have a significant effect on the cost of servicing members of this cohort. Understanding the factors that positively contribute to the Generation Y cohort’s trust in mobile banking will help retail banks to better market their mobile banking channels to members of this cohort and thereby foster greater adoption of such channels. The study reported in this article considers the influence of the perceived integrity of the bank and the perceived system quality of mobile banking on Generation Y students’ perceived trust in mobile banking in the South African context. Data were gathered from a convenience sample of 334 students registered at three public South African university campuses using a self-administered questionnaire. The gathered data were analyzed using descriptive statistics, correlation analysis and bivariate regression analysis. The results of the study suggest that Generation Y students’ perceived integrity of a bank, together with the perceived system quality of mobile banking, has a significant positive influence on their perceived trust in mobile banking.

Banking Reforms and Competition Liability Structure of Indian Banking Segments

Banking Reforms and Competition Liability Structure of Indian Banking Segments

РОЛЬ БАНКІВСЬКИХ ІННОВАЦІЙ В СИСТЕМІ ЗАБЕЗПЕЧЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ БАНКІВ

The article summarizes the theoretical foundations and defines the role of banking innovations in the system of ensuring the competitiveness of banks. It has been found that in recent years there has been a trend in the banking sector, which indicates that the traditional business model of the bank, based on a regionally branched network of branches, is becoming increasingly inefficient, as rising costs are not supported by rising efficiency. It is noted that banks are sensitive to the process of economic instability, which manifests itself as a loss of financial stability, reduction and deterioration of customer base due to falling solvency, on the one hand, and loss of confidence - on the other, which collectively affects financial performance and competitiveness . It is outlined that in such circumstances banks face an important task of forming a strategy to increase competitiveness, which will ensure not only maintaining but also strengthening market positions through a clear understanding of the structure and dynamics of the financial services market in general and its banking segment in particular. The study emphasizes that innovation as a field of activity, and hence banking innovation in particular, is actively developing. The relevance of new implementations and ideas, especially those already used by foreign banking institutions, and still little known in our country, as opportunities to ensure a high level of bank competitiveness, has been studied. Accordingly, the study highlights the exceptional role of bank investment in the system of ensuring the competitiveness of the bank. Therefore, further research in this direction is important, because the introduction of banking innovations is a very dynamic process. In addition, not all innovative solutions become widespread, and successful banking innovative solutions in some countries may go unnoticed in others.