Expansion Of Banks Research Articles

Conjoint Analysis to Measure Millennial Generation's Preferences on the Role of Technology in the Existence of Mitra Batik Cooperatives in Tasikmalaya

As a people's economic movement founded on the concept of kinship, a cooperative is a corporate company made up of individuals or cooperative legal entities that engage in cooperatively-based activities. In the city of Tasikmalaya alone there are 603 ooperatives with an active level of 44%. Mitra batik cooperative is one of the oldest consumer cooperatives in Tasikmalaya. In an effort to develop cooperatives, mitra batik cooperatives are faced with a situation where they still have various obstacles for their development, one of which is the low interest and awareness of the community members to participate in cooperatives. In an effort to increase the number of cooperative members, the authors intend to conduct research on the preferences of Tasikmalaya people, especially millennial generation to participate in maintaining the existence of mitra batik cooperatives. The method used is conjoint analysis. According to the research results, millennials consider technology the most significant aspect in preserving mitra batik cooperatives in Tasikmalaya. In the digital age, technology is a crucial element. Millennials like technology's ease. The millennial generation must develop technology to preserve mitra batik cooperatives in Tasikmalaya. Due to the fast expansion of banking, particularly in technology, cooperatives must keep up with technology.

Absorption and profitability: evidence from the expansion of pan-African banks

ABSTRACT Several local banks in the West African Economic and Monetary Union (WAEMU) were absorbed (acquired) by pan-African banking groups over the last two decades. These acquisitions occur in the context of a rapid and ongoing expansion of these banking groups that is transforming Africa’s banking landscape. This paper estimates the impact of two waves (2013 and 2017) of absorption of local banks by pan-African banking groups on the absorbed banks’ profitability, using a dynamic difference-in-differences method that allows for heterogeneous treatment effect. We find the absorption treatment has positive and significant impacts on the return on assets of local banks, but negative ones on their return on equity. This suggests that pan-African banking groups successfully operate the local banks they absorb but do so at lower returns for the capital engaged in these banks.

Antecedents of Islamic credit card adoption in Pakistan: an empirical study based on the decomposed theory of planned behavior

PurposeIn the past three decades, the expansion of Islamic banking has been recognized as one of the most significant financial developments across the world, and to enhance their market share in the highly competitive global banking market, these Islamic banking institutions must continue to be innovative. Credit cards are popularized worldwide; developing countries are also intrinsically motivated to adopt this product for performing financial transactions; however, understanding the factors influencing Islamic credit card (ICC) adoption remains limited, and the ICC still needs to attain adequate market share in the banking sector. Therefore, this study aims to investigate the determinants of ICC in Pakistan.Design/methodology/approachFor empirical estimation, sample data from 499 respondents, including ICC users and individuals willing to use ICC, is utilized through partial least square structural equation modeling.FindingsThe results show that attitude, compatibility, perceived behavioral control and religiosity are positive, while complexity negatively affects ICC adoption. In contrast, social influence, trust and satisfaction are insignificant determinants of ICC’s intention to use in Pakistan.Originality/valueAs a banking service, ICCs are viewed as a new banking product in Pakistan and have limited scope in the literature. Therefore, this study contributes to the existing literature by providing more integrating policy insights to academians and banking managers on ICC service in Pakistan.

Are cooperative and commercial banks equally effective in reducing the shadow economy? International evidence

Are cooperative and commercial banks equally effective in reducing the shadow economy? Although theory and evidence indicate that the expansion of the financial system reduces the size of the shadow economy, little is known on the role played by cooperative and commercial banks in shaping the size of the shadow economy. We address this issue using data from 42 developed and developing countries over the 2006–2017 period. For our empirical purposes, Generalized Least Squares (GLS) and Instrumental Variable (IV) estimators have been employed. Evidence indicates that cooperative banks significantly reduce the size of the shadow economy. On the contrary, commercial banks are shown to increase the shadow economy. Consistent with previous literature, while for cooperative banks increased financial outreach encourages small firms to enter the formal sector, thereby reducing the size of the shadow economy, the expansion of commercial banks exacerbates the latter by tightening credit constraints for small firms.

Testing the development impact of islamic banking: Islamic moral economy approach to development

Redistributive justice and stakeholder development have been central objectives of the Islamic moral economy for which Islamic banking was considered a facilitatory operational tool. Being its institutional form, the emergence of Islamic finance is, therefore, related to rescuing ‘human, land, labour and capital’ so that extended stake-holding governance can be achieved. As opposed to the institutional logic of conventional finance, within the Islamic moral economy paradigm, Islamic finance, theoretically, is expected to essentialise justice and equilibrium and equalise development opportunities for all stakeholders to fulfil their development path towards perfection. To assess the Islamic moral economy performance of Islamic banking, this paper uses HDI and GINI as the dependent variables to determine short-run and long-run relationships between Islamic banking growth and the development of the economy through socioeconomic indicators. The data covers the period 2000–2021 with fourteen countries with a systemic presence of Islamic finance, The results show that although Islamic banks did not cause an increase in inequality, as opposed to expectations, they neither caused a decrease in the sampled countries. As for the effect of Islamic banking expansion on human development, it positively contributes to human development only in the long run under certain conditions, which cannot be established in the short run. If sustained, this should be considered positive progress as opposed to the experience observed in the initial period of Islamic banking.

Impact of Off-Balance-Sheet Activities on the Effectiveness of Monetary Policy

Off-balance-sheet (OBS) activities are special means of credit expansion of commercial banks, which can affect banks’ assets allocation decisions, loans supplies, and the bank lending channel of monetary policy transmission. This paper analyses the impact of OBS activities on banks’ asset allocation and on the effectiveness of monetary policy. Our findings show that increases in OBS activities weaken the effectiveness of price-based monetary policy through the bank lending channel, and this dampening effect is stronger in periods of market liquidity shortage.

Commercial Bank Expansion and Environmental Pollution: Micro Evidence from Industrial Firms in China

Commercial Bank Expansion and Environmental Pollution: Micro Evidence from Industrial Firms in China

Risking or de-risking? The effect of banking competition on large state-owned banks and small and medium-sized enterprise lending: Evidence from China

This study examines the effect of the expansion of small and medium-sized bank branches on large state-owned banks in China based on bank branch-level financial data and detailed loan-level data from 2008 to 2015. We find that the expansion of small and medium-sized banks favorably impacts the operating income of large state-owned banks without intensifying bank risk-taking. Large state-owned banks, used to lack competition, expand their total lending scale to achieve more operating revenue by servicing more firms, especially small and medium-sized enterprises (SMEs). This promotes SMEs' access to finance, while also raising the operating costs of large state-owned banks. More importantly, the lending standards and loan quality of large state-owned banks do not deteriorate, implying that they do not employ risky lending tactics to deal with increased competition.

Biogeomorphological floodplain dynamics along a degradation gradient of an Alpine river

AbstractChannel migration, furcation, and vegetation succession are characteristic processes of braided gravel rivers in Alpine regions. These are associated with a frequent turnover of large parts of the active floodplain. However, more than one century of river regulation has reduced or destroyed most of these ecosystem dynamics. More recently, there have been attempts to restore at least some sections of degraded rivers, while there is little monitoring of the biogeomorphological dynamics of such rivers. Thus, we did a four‐year analysis of four representative sections of the upper River Isar in Southern Germany differing in their degree of naturalness. Dynamics of channels, gravel bars, and vegetation were recorded by drone images, and braiding and gravel indices were calculated. When comparing the near‐natural, semi‐natural, degraded or restored sections, there was a gradient of decreasing channel migration, gravel bank expansion, and bank erosion due to a reduced turnover frequency. Biogeomorphological variation among years correlated with log peak discharge within the four sections. In addition, the cover and height growth of vegetation increased with river degradation, and channel migration was positively related to the braiding index. The total turnover of the active river corridor and of the vegetation were positively correlated with log peak discharge within the four sections. The floodplain dynamics of the restored section were improved compared to the degraded section but did not reach a near‐natural state. Thus, Alpine river sections with contrasting degrees of naturalness differ in terms of habitat turnover and vegetation succession, and these characteristics can only partially be restored by local measures.

The financial inclusion agenda: Examining the role of conventional banks in deepening access to formal credit

Using a unique district-level panel dataset, we investigate the effect of banking system penetration on financial inclusion in Ghana. To purge potential endogeneity bias in the underlying relationship, we exploit a change in the policy environment of the Ghanaian banking system to instrument for bank branch expansion. We show, first, that the switch from the compartmentalized system of banking to the universal banking system in Ghana has resulted in an expansion of banks’ branch network, which has benefited hitherto financially less developed districts. Second, our instrumental variable evidence suggests that banking system penetration promotes financial inclusion—notably, access to bank credit and to formal credit. The results of this paper provide important insights into the role of policy in enhancing financial inclusion.

The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam

This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banking is found to have a negative effect on the overall financial soundness of the securities companies, in particular negatively affecting performance and increasing the risk tolerance of companies. We present empirical findings about several aspects of shadow banking activities, including entrusted loans, entrusted investments, private lending, leasing, and commercial credit in this study. While the majority of shadow banking operations could have a negative impact on a firm's performance, we have discovered that commercial credit grants were crucial in reducing the COVID-19 pandemic's adverse effects on businesses, highlighting the need for financial stability in times of crisis. According to our results, the risk of shadow banking activities, which have consequences for policymakers and caution for nonfinancial enterprises, must be taken into consideration.

Bank branching and corporate tax avoidance: evidence from a quasi-natural experiment of banking deregulation in China

ABSTRACT Using the small and medium-sized commercial banks’ market entry reform policy implemented in 2009 in China as a quasi-natural experiment of banking deregulation, we examine its effect on corporate tax avoidance. Our empirical results show that banking deregulation significantly reduces corporate tax avoidance. Banking deregulation not only promotes the expansion of joint-stock banks and city commercial banks, but also increases the credit supply and bank competition in the region. Further tests imply that banking deregulation restrains corporate tax avoidance through two channels: alleviating financial constraints and strengthening external monitoring. Our paper sheds new light on the spillover effects from regulations in the banking sector to tax management behaviours in the corporate sector.

Key Determinants of for-Profit Micro Finance Institutions Credit: A Study on Rural Manufacturing Households

The pathetic condition of Indian agriculture speaks volumes about the distress in its rural economy. Manufacturing activity, though providing hope, is constrained by the availability of credit. From social banking to for-profit micro finance institutions (MFIs), the rural economy has witnessed a sea change in the public provisioning of credit. The phenomenal growth of for-profit MFIs in recent years is associated with growing concerns over their unethical practices and exploitation of the rural poor. The present study attempts to trace the factors that influence rural households’ dependence on forprofit MFI credit, despite the abovementioned concerns. The study is based on a primary survey and uses logit and probit models. The estimated results suggest that the factors like access to bank credit and household poverty factors—such as per capita income, number of male workers, and the existence of wage labour—significantly influence the probability of accessing for-profit MFI credit. Accordingly, the present study proposes remedial policies like the expansion of scheduled commercial banks (SCBs) and not-forprofit MFIs, apart from strict regulation of for-profit MFIs.

The Impact of Artificial Intelligence Applications on Digital Banking in Turkish Banking Industry

This paper presents the effects of chat box (C.B.) and video call (V.C.) artificial intelligence applications, which are becoming increasingly common in the banking system in parallel with the development of information systems on the number of digital banking users, and the relationship between the variables is investigated. The data set of the variables consists of a total of 44 observation points between the 1st quarter of 2012 and the 4th quarter of 2022. The cointegration relationship between the variables is examined using the ARDL cointegration test. According to the F statistic results for cointegration hypothesis testing, there is a statistically significant relationship between the variables at a 1% significance level. In the long run, a 1% increase in Chat Box users causes an increase of approximately 0.2% in the number of mobile banking users. A 1% increase in Chat Box users in the short term increases the number of mobile banking users in the current period by approximately 0.03%. A 1% increase in video call users in the long term causes an increase of approximately 0.04% in the number of mobile banking users. A 1% increase in the number of video calls in the current period increases current period mobile banking applications by approximately 0.005%. It has been determined that the effect of chat box applications on mobile banking is higher than that of video call applications. In addition, there is a close correlation between mobile banking and the independent variable chat box, no correlation between mobile banking and video calling, and a moderate correlation between chat box and video calling. All findings mean that artificial intelligence applications positively contribute to the expansion of mobile banking.

Seasonal change of tensile crack morphology and its spatial distribution along gully bank and gully slope in the Mollisols region of Northeast China

Gully bank expansion is a critical process of gully development, with tensile cracks development being a necessary condition for gully bank instability and collapse. However, there has been a lack of research on the morphological characteristics of tensile cracks and their distribution along gully bank and slope, which hinders our understanding of gully expansion and its underlying mechanisms. This study aims to address this knowledge gap by investigating the temporal changes in the morphology and spatial distribution of tensile cracks in the Mollisols region of Northeast China. We conducted field investigations at three times: 2020–10 (before freeze–thaw), 2021–05 (after freeze–thaw), and 2021–10 (after rainy season). Morphological and topographical indicators, as well as the locations of each crack, were taken into determination, and an unmanned aerial vehicle (UAV) was employed to capture images of the gullies for clarifying the distribution of tensile cracks. A total of 284 cracks were found with 66.9 % of them on the gully bank and 33.1 % on the gully slope, with their average length, width, and depth of 4.69 m, 8.88 cm, and 20.55 cm, respectively. The length of cracks after freeze–thaw increased by 12.8 %, while the width and depth decreased by 31.2 % and 32.5 %, respectively, and the width of cracks increased by 16.5 % but their length and width decreased by 14.8 % and 24.8 % after rainy season, respectively. The cracks in the rainy season were mainly extinction, and the total length of the cracks is 86.3 % higher than that in the freeze–thaw period, while the freeze–thaw period is dominated by the new formation of cracks with the length of the newly formed cracks being 28.3 % higher than that in the rainy season. Most cracks were distributed in the middle and lower part of gully, and the cracks were closer to the gully head and the gully channel centerline after freeze–thaw. The length, width, and depth of cracks showed a significantly negative correlation with upstream slope, and they were significantly and positively related with gully slope and gully-slope length. Our results provide critical insights into the nature and severity of cracks, lending vital support to the study of gully bank expansion.

Impact of banking development and renewable energy consumption on environmental sustainability in Germany: Novel findings using the bootstrap ARDL approach

This study examines the effects of banking development, economic growth and consumption of renewable energy on carbon dioxide (CO2) emissions and load capacity factor (LCF). Previous empirical studies have assessed the interrelationship between banking development and CO2 emissions; however, these studies have ignored supply-side ecological issues. To overcome this issue, this study evaluates the effect of banking development on LCF, which is considered to be one of the most comprehensive ecological proxies to date, including both biocapacity and ecological footprint (EF). Using the bootstrap autoregressive distributed lag model, the study reveals that renewable energy improves ecological quality in Germany. The results of the investigation demonstrate that the environmental Kuznets curve hypothesis is valid in Germany using CO2 emissions and LCF indicators. Furthermore, this study demonstrates that banking growth and renewable energy in Germany correlate with improved environmental quality. These findings provide policymakers with important insights. In this context, the study advises the banking industry and government authorities to leverage banking expansion to support green energy to achieve the national goal of zero CO2 emissions by 2045.

Green gospel effect of regional financial expansion: evidence from urban commercial banks in China.

The regional financial expansion represented by the development of regional small and medium-sized banks, such as urban commercial banks, is an essential factor affecting the environmental behavior of enterprises. We found that both the marginal expansion and the scale expansion of regional finance help reduce the sulfur dioxide emission intensity and improve the environmental performance of enterprises, indicating a green gospel effect of regional financial expansion. In terms of the impact path, regional financial expansion cannot only reduce the sulfur dioxide generation intensity and improve the front environmental performance of enterprises, but also increase the sulfur dioxide removal intensity as well as improve the terminal environmental performance. However, in the context of high fiscal pressure on local governments, regional financial expansion exacerbates sulfur dioxide emission and generation intensity of enterprises, worsening environmental performance and creating a green curse effect. Further study finds that the cross-regional expansion of urban commercial banks can strengthen the green gospel effect; the improvement of enterprises' environmental performance by regional financial expansion is mainly found in polluting industries and non-SOEs.

ОСОБЕННОСТИ УПРАВЛЕНИЯ КРАТКОСРОЧНЫМИ СТАВКАМИ ДЕНЕЖНОГО РЫНКА В УСЛОВИЯХ УСТОЙЧИВОГО ПРОФИЦИТА ЛИКВИДНОСТИ НА РЫНКЕ МЕЖБАНКОВСКОГО КРЕДИТОВАНИЯ

One of the central bank’s operative objectives is control of short-term interest rates. It means that monetary authority maintains short-term interest rates within a specified corridor and provides their conformity to the policy rate level. Monetary policy tools, which provide liquidity and absorb it from the interbank lending market, insure effective interest rate steering policy. In conventional times central banks implement their monetary policy in case of insignificant deficit of reserve money preserving control over money market interest rates. After the Great Recession central banks of developed countries had to bring tools of unconventional monetary policy in operation, what resulted in unprecedented growth of supply of excess reserves and expansion of central banks’ balance sheets. Basing on experience of Federal Reserve System this article covers the issue of short-term interest rates steering within the scope of significant sustainable structural liquidity surplus on reserve money market.

The local communities’ perceptions on the social impact of tourism and its implication for sustainable development in Amhara regional state

Tourism is a current and global industry that has a multidimensional impact on destinations. As an emerging industry, it has an immense contribution to make to the development of the local community if all stakeholders participate in a responsible manner. The social impact of tourism is, among other things, one that needs the attention of scholars. The social impact of tourism is immense and diverse, and it is embedded with other tourism impacts. So, studying it is very essential to managing tourism in a responsible way. To address the stated objective, mixed research approaches were used. The result of the study indicated that tourism has both positive and negative impacts on tourist destinations. The positive social impact of tourism was expressed in moderate terms and stated in terms of the expansion of hotels, road transportation, air transportation, electricity, internet, banking, and other infrastructures. The negative social impact was expressed in small terms and conveyed in terms of the unequal access to the aforementioned social services, the expansion of prostitution, the persistence of theft and illicit trade in heritage, and the random adoption of the lifestyles and manners of tourists by residents.

AN ANALYSIS OF THE INDONESIAN SHARIA BANKING DEVELOPMENT ROADMAP 2020-2025

This article aims to examine the Roadmap that has been published by the Financial Services Authority (OJK) for the expansion of Islamic banking in Indonesia in the next five years. In particular, it seeks to analyze the main pillars that the Roadmap has identified to further the progress of Islamic banking in Indonesia. These pillars are strengthening the identity of Islamic banking, synergizing the Islamic economic ecosystem, and strengthening licensing, regulation, and supervision. This study applies a qualitative method to analyze the implementation of the 2020-2025 Islamic banking development roadmap. The data was analyzed using taxonomic analysis techniques method, that conducts not only a general exploration but also focuses on a particular domain in accordance with the research focus of the researcher. Because this research is qualitative in nature, the data was interpreted based on the content review system. The paper finds that the use of technology is one of the most important tools to achieve the three pillars of Islamic banking in Indonesia. Having the full support of all Islamic banking stakeholders is also another important factor that will further progress the industry. The analysis of the Islamic banking Roadmap provides an overview on the key pillars that have been identified as drivers for the future of Islamic banking in Indonesia. This will provide important knowledge to industry players, the academic and other stakeholder to understand the direction that the industry will be taking in the next five years so that they can collaborate effectively to support the progress of the industry. The analysis of the 2020-2025 Islamic banking development roadmap is a first in the existing literature. A critical analysis of this recently released document by the OJK in 2021 is deemed important to elucidate the future direction of the Islamic banking industry to stakeholders in Indonesia.