Banking Organizations Research Articles

Factors Affecting Total Risk in Banking Sector of Pakistan: Empirical Evidence from Panel Data Analysis

If a financial organization flops, it can impose an externality nationwide as a whole. Augmented globalization along with deregulation of financial organizations has not only given rise to competition, but it has also amplified the need for powerful policies to manage risk for the industry. Being cautious of elements which might direct to failure of banking organization support in future for evading losses by introducing preemptive initiatives to minimize damage caused by risk. This study analyzes the factors affecting total risk in banking sector of Pakistan using sample data from 2006 to 2013. The results revealed that the size of bank, financial leverage, liquidity, loan to asset ratio, growth in real GDP, supply of money and spread of interest rates all seem to be statistically significant with total risk faced by bank. However, the ratio of loan losses remained statistically insignificant. This study stresses the insertion of macroeconomic factor as a probable determining factor for total risk.

Convalescent plasma use in the USA was inversely correlated with COVID-19 mortality.

The US Food and Drug Administration authorized COVID-19 convalescent plasma (CCP) therapy for hospitalized COVID-19 patients via the Expanded Access Program (EAP) and the Emergency Use Authorization (EUA), leading to use in about 500,000 patients during the first year of the pandemic for the USA. We tracked the number of CCP units dispensed to hospitals by blood banking organizations and correlated that usage with hospital admission and mortality data. CCP usage per admission peaked in Fall 2020, with more than 40% of inpatients estimated to have received CCP between late September and early November 2020. However, after randomized controlled trials failed to show a reduction in mortality, CCP usage per admission declined steadily to a nadir of less than 10% in March 2021. We found a strong inverse correlation (r = -0.52, p=0.002) between CCP usage per hospital admission and deaths occurring 2 weeks after admission, and this finding was robust to examination of deaths taking place 1, 2, or 3 weeks after admission. Changes in the number of hospital admissions, SARS-CoV-2 variants, and age of patients could not explain these findings. The retreat from CCP usage might have resulted in as many as 29,000 excess deaths from mid-November 2020 to February 2021. A strong inverse correlation between CCP use and mortality per admission in the USA provides population-level evidence consistent with the notion that CCP reduces mortality in COVID-19 and suggests that the recent decline in usage could have resulted in excess deaths. There was no specific funding for this study. AC was supported in part by RO1 HL059842 and R01 AI1520789; MJJ was supported in part by 5R35HL139854. This project has been funded in whole or in part with Federal funds from the Department of Health and Human Services; Office of the Assistant Secretary for Preparedness and Response; Biomedical Advanced Research and Development Authority under Contract No. 75A50120C00096.

A new value-based method for decomposing profit efficiency

Abstract Conventional profit and allocative efficiencies suffer from a critical deficiency if input and output prices are different between decision-making units (DMUs) in the market when assuming given uniform input and output prices under a homogeneous technology. Price differences and technology gap considerations are more relevant to firms in reducing profit loss under a non-homogeneous technology with non-perfect market competition. This study proposes a new value-based meta-profit inefficiency decomposition considering the presence of both a new technology gap and price inefficiency. As an illustrative empirical application, we present an example of 35 Taiwanese banks representing two types of banking organizations: financial holding companies (FHCs) and non-FHCs. The new decomposition we propose helps to identify the profit–loss due to group technical, group price, new technology gap and meta-mix inefficiencies of DMUs.

Incidence of Mortality rates due to Tuberculosis in Association of South East Asian Nations and its relation to Current Health Expenditure Per Capita: A secondary Data Analysis

Introduction: Tuberculosis is a devastating health condition with a high incidence in the ASEAN population. This study analyses mortality trends due to TB among the Association of South East Asian Nations (ASEAN) and also investigates the relationship between mortality and Current health expenditure (CHE) per capita Methods: This study is a secondary data analysis on mortality rates and CHE per capita from the year 2002 to 2017. The data was obtained from global health observatory data repository databases and World Bank Organization respectively. They were analysed using SPSS trial version 23. Results: This study showed an overall reduction in mortality rates among the ASEAN countries except Brunei Darussalam which showed an increase. This study also showed an indirect intermediate correlation between mortality rates and CHE per capita. Discussion: Among the ASEAN, Singapore, which follows the TB control program suggested by WHO, achieved 2/5 TB control performance indicators. Its healthcare spending has almost doubled since 2010. Since implementation of directly observed treatment, short-course in Thailand in 2001, Thailand has succeeded achieving the detection target. Brunei Darussalam witnessed an increase in mortality rate. The rise in the number of people with chronic Non –communicable Diseases, especially diabetes mellitus, is posing a major challenge to Brunei's TB control efforts. Myanmar has a heavy TB burden, it seeks to cut TB incidence in half by 2025. Key words: Tuberculosis , ASEAN, Secondary data analysis, Mortality, Current health expenditure per capita.

Corneal transplant during COVID-19 pandemic: the Italian Eye Bank national report

To investigate the impact of Coronavirus Disease-2019 lockdown on the Italian Eye Bank organization. In this national retrospective, multicentric, cohort study, data from the Italian Eye Bank during both the lockdown and the first month after the lockdown period were retrieved. We compared the Italian Eye Bank metrics with the same timeframe of 2019 and 2018. Data from 13 out of 13 (100%) Italian Eye Banks were included in the analysis. A statistically significant reduction in the number of donor corneas retrieved in 2020 was found as compared to the same period in 2019 and in 2018, respectively (2020 = 1284; 2019 = 3088; 2018 = 3221; ANOVA: p < 0.0001). Only 534 corneas have been distributed by Eye Banks during the COVID-19-lockdown period (2020 = 534; 2019 = 1220; 2018 = 1237. ANOVA: p < 0.0001). Similarly, the number of wasted corneas due to postponed or cancelled surgeries was 421, resulting in a considerable increase as compared to the previous 2 years (2020 = 421; 2019 = 67; 2018 = 84; ANOVA: p = 0.0035). Overall, 45 donor corneas were rejected in accordance with the guidance of the Italian National Health Institute Italian National Transplant Centre (CNT). SARS-CoV-2 pandemic has profoundly affected every social and medical field, including the Eye Bank procurement and distribution programs. The current data collected from all the Italian Eye Banks highlights the present and the forthcoming difficulties that the Eye Bank community is going to experience, as for the ongoing pandemic.

Complexity and Riskiness of Banking Organizations: Evidence from the International Banking Research Network

Complexity of banks can have important ramifications for the performance and the risks of the banking system. Financial sector reforms that were implemented in the past decade have thus aimed to reduce and to better manage the risk implications of bank complexity. Yet, surprisingly little is known about changes in complexity across countries, its drivers, and its effects. The International Banking Research Network (IBRN) used data and analytical advances to generate rich cross-country insights on the complexity and riskiness of banking organizations. The initiative has yielded four key findings. First, the largest banks in countries tend to be the more complex ones. Even controlling for size, there is substantial diversity across banking organizations in terms of complexity choices. Second, over the past decade, banking organizations have tended to reduce complexity by limiting the number of affiliates in domestic and foreign locations. Generally, however, complexity patterns are fairly persistent. Third, regulatory changes can alter both banking organization complexity and the associated risk profiles. Fourth, the link between complexity and risks involves trade-offs: diversification benefits and reductions in liquidity risk may weigh against agency problems, monitoring costs, and systemic risk contributions arising from higher complexity.

Foreign banks' asset reallocation in response to the introduction of the Intermediate Holding Company rule of 2016

&lt;ns3:p&gt;The implementation of the 2016 intermediate holding company (IHC) rule required foreign banking organizations (FBOs) operating with more than $50 billion total global consolidated assets and with $50 billion or more in U.S. non-branch assets to consolidate their non-branch activities – including their U.S. subsidiaries and U.S. broker-dealers – into holding companies, to be supervised by the Federal Reserve.&lt;/ns3:p&gt;

ЭФФЕКТИВНОСТЬ ДЕЯТЕЛЬНОСТИ РУКОВОДИТЕЛЕЙ СРЕДНЕГО ЗВЕНА КАК КЛЮЧЕВОЙ ФАКТОР КОНКУРЕНТОСПОСОБНОСТИ РОССИЙСКИХ БАНКОВ

The objective of this study is to analyze the effectiveness of middle managers’ activity, as well as to determine the conditions for its increase through the improvement of the entire management system of middle managers in Russian banks. The methodological basis of the research was formed by the systemic and structural-functional approaches, within the framework of which the management system for middle managers with all its constituent functions was built. Methods of observation and survey made it possible to determine the primary qualities, the development of which will help this category of managers to manage their team effectively and achieve organizational goals in the shortest possible time, with minimal resources expended. Research results show that it is at the middle level of management that the most important processes are carried out that determine the competitiveness of the organization, since the middle managers, using great autonomy in decision-making, carries out operational management in the bank. Prospects of the study can be useful to heads of banking organizations.

Personality Traits and Ethical Belief as Factors Influencing Fraud Intent Behaviour among Bank Employees in Ibadan, Nigeria.

Fraud is an ever-growing problem for financial institutions in Nigeria, with criminals using a wide variety of methods. Unfortunately, employees were fingered in most of these fraudulent activities. Previous studies focused on contextual and organizational antecedents of motivating engagement in fraudulent practices and less on employees’ dispositional factors. This study examined the role of personality traits and ethical beliefs on fraudulent behaviour among bank employees. The study was a cross-sectional study. Three hundred and fifty-three (353) employees in the middle to junior level management cadre were selected through stratified sampling technique from banking organisations operating in the Ibadan metropolis. The respondents responded to a self-report questionnaire measuring fraudulent behaviour intention and red flags; personality traits and Ethical position questionnaire. Two hypotheses were tested using multiple regression, Pearson correlation analysis and ANOVA at p≤0.05. Results demonstrated that conscientiousness personality trait was the only predictor of fraud intent behaviour among the personality variables. Employees with Absolutist ethical principles reported lower fraud intent behaviour than those with subjectivist ethical philosophy. The study concludes that personality traits and ethical beliefs were powerful motivators for fraud behavior. Thus, fraud and HR experts were enjoined to utilize psychological profiles in fraud investigations and selection of employees.

Banking Audit Function Transformed – A Strong Foundation for Resilience

Banking industry has traditionally visualized audit as a profession driven by extensive interaction between accounting stakeholders, documented evidence based verification and validation and a lot of office desk driven activities.With the advent of the COVID-19 pandemic, the profession now encounters a titanic challenge in the way businesses is to be done and would be done going forward.Apropos to note, the timing of the pandemic closures happened at a time when banking organisations (specially in geographies who follow Jan to Dec or Apr to Mar accounting cycle or accounting cycle overlapping to the pandemic window) are at the cusp of finalizing their accounting books and hence peak season for work.In this back-drop, authors (joint authors from Tata Consultancy Services) on this paper this paper enlists to highlight some of the points for consideration by auditors in conducting their audit in this unique accounting season, as also lay down a set of perspectives for consideration for the profession to be better prepared to address similar insurmountable scenario(s) in the future.

Careers advancement of women: Applying a multi-level relational perspective in the context of Turkish banking organisations

This article investigates the question of why women remain underrepresented in management positions despite their increasing presence in the Turkish banking sector context. By using an integrative framework that brings together the relational and institutional perspectives, this article seeks to understand how macro-level contextual influences reflect on meso-organisational processes and practices, which in turn influence women’s micro-individual career trajectories. This article explores the careers experiences of 49 female banking professionals from three distinct banking organisations (Turkish, western and Islamic). The findings reveal that women’s limited representation at managerial level is an outcome of the interplay between macro-, meso- and micro-level issues. At the macro-level, the article highlights religion-based fragmented social structure as a key factor in the socio-cultural context of Turkey. At the meso-level, the analysis of the three different cases identifies factors relevant to both western and Middle Eastern societal contexts. At the micro-level, the analysis highlights how women’s perceptions of macro-level barriers change depending on their organisational context, emphasising the interrelatedness between these three levels. The article contributes to women’s career literature by providing the Turkish perspective and introducing novel insights into the interplay between societal forces, organisational practices and individuals’ perceptions.

Banks’ complexity-risk nexus and the role of regulation

We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period 2005-2017. We find that more complex banking organizations tend to take on more risk, but that this complexity-risk nexus decreases over time. We study how regulatory tightenings inherent in this period, and addressing systemically important banks (SIBs) in general and complexity more specifically, alter banks’ choices of complexity and risk. Banks reduce their complexity in response to regulatory tightenings, as these increase the related regulatory costs. Surprisingly, for SIBs in particular, the reduction of regulatory costs is associated with an increase in diversification benefits. As a result, they are able to lower their idiosyncratic risk more than other banks. The overall complexity-risk nexus is lower after regulatory tightenings. Thus, our results indicate that post-crisis regulation is effective in reducing banks’ complexity-risk nexus.

Can Business Architecture Modeling be Adaptive?

Businesses find the need to adapt to changes in the dynamic and competitive environment. However, they are confronted by static business architecture (BA) modeling and artefacts, which are less likely to adapt and, thus, quickly become obsolete. This article proposes a dynamic analytics-enabled adaptive BA modeling framework to address this concern. This research is performed using an action design research (ADR) method in collaboration with an Australian organization. The proposed approach has been implemented and evaluated using a banking organization as a case study.

Computing Capital Budgeting for Banking Sector

Perhaps the most difficult hurdle which companies come across is the selection of the project which is beneficial to the organization in the long-run and also increases the present value of the shareholders. This is where Capital Budgeting comes into play. Capital Budgeting is one of the most important areas of financial management. This paper gives an overview of what capital budgeting is, what different types of techniques comes under capital budgeting and how to represent capital budgeting technique algorithmically. In this paper we also throw some light on what the results of various capital budgeting techniques will be if any banking organization follows these techniques and compare those results. These techniques namely as Payback Period (PP), Average Rate of Return (ARR), Net Present Value (NPV), Profitability Index (PI) and Internal Rate of Return (IRR) are used to evaluate projects.

Improving banks’ Operating Efficiency with Corporate Clients

The author studies the recent changes in the operating conditions of commercial banks regarding servicing corporate clients. The aim of the study is to find ways in the current conditions to change the approaches of banks to doing business with corporate clients to get more profit. The theoretical and methodological basis of the study is the scientific works by foreign scientists and experts on improving the efficiency of banking organizations. The author used the methods of qualitative and quantitative analysis of scientific publications, regulatory and legal sources, retrospective statistical data and analytical materials of well-known consulting companies. As a result , the author identified areas for improving the internal banking processes: deeper analysis of the client’s activities and the industry where they work; high speed of processing client data without requiring to submit the same documents each time; personalization of the offer to the client of the service according to products, price and other conditions that will attract them to develop their business with this bank; development of financial services by the bank that will help the client to direct more funds and attention to their core business. The author concludes that introducing new approaches in cooperation with companies allows banks not only to solve the issues of increasing the profitability of corporate business, but also to help bring the return on capital invested by banks’ shareholders closer to the cost of capital, which is an important guideline for investors when choosing investment objects.

Corporate social responsibility and financial inclusion: Evaluating the moderating effect of income

Financial institutions play a vital role in the implementation of effective CSR in local communities with significant initiatives that support financial inclusion. The findings of this study reveal that CSR has a significant, positive impact on financial inclusion. The study rules out any moderating impact of income on the strength of the relationship between CSR and financial inclusion. The research findings of this study will help policymakers to design effective policies to motivate banking organizations to consider CSR as an effective tool to improve financial inclusion.

Hardening soft information: does organizational distance matter?

A large literature has developed on the distinction between hard and soft information with much of this literature focused on displacement of soft information with hard information. We investigate whether the propensity of loan officers at local branches to incorporate soft information in the credit scoring process is affected by the geographical distance between the branch and the bank’s headquarters. We find that hardening soft information is significantly sensitive to branch-to-headquarters distance. We also find that organizational distance affects time for loan approval, increasing approval time for applicants receiving a good credit score (i.e. low probability of default) originated at distant branches and reducing approval time for applicants with poor credit scores (i.e. high probability of default). Finally, we find that on average organizational distance has no direct impact on the likelihood of the occurrence of negative credit events. However, the final rating being equal, the hardening of soft information has an influence on loan performance that varies with organizational distance. Overall, our findings are consistent with the presence of spatially based communication frictions within banking organizations.

О ПРОБЛЕМАХ РЕАЛИЗАЦИИ ПОЛНОМОЧИЯ ПРЕДСТАВИТЕЛЯ ВЗЫСКАТЕЛЯ НА ПОЛУЧЕНИЕ ПРИСУЖДЕННЫХ ДЕНЕЖНЫХ СРЕДСТВ: ВСЕ СОМНЕНИЯ НЕ В ПОЛЬЗУ

The author examines the problematic aspects of the implementation by the representative of the claimant under the enforcement document of a special power to receive funds both in the course of enforcement in the presence of enforcement proceedings initiated in the relevant division of bailiffs, and in the order of presenting the writ of execution directly to a Bank or other credit organization. It is stated that there is no uniformity of judicial practice on the issue of recognizing the right of a representative to demand the transfer of funds due to the recoverer to the account of the recoverer’s representative in the event of the exercise of this power during the initiated enforcement proceedings. The article substantiates the provision on the involuntary nature of the Bank’s actions carried out in accordance with Article 8 of the Law on Enforcement Proceedings, as well as on the unreasonableness of the ban on transferring funds to the personal Bank account of the representative in the case of applying with an enforcement document to the Bank for the purpose of collecting in a simplified manner. It is concluded that there are no significant grounds for differentiating the considered options for collecting funds in order to determine whether the representative of the recoverer has the right to receive the money awarded to the recoverer.

Power in the U.S. political economy: A network analysis

AbstractMany features of the U.S. political economy arise from the interactions between large political and economic institutions, and yet we know little about the nature of their interactions and the power distribution between these institutions. In this paper, we present a detailed analysis of networks of U.S.‐based organizations, where edges represent three different kinds of relationships, namely owner–owned (ownerships), donor–donee (donations), and service provider–payee (transactions). Our findings suggest that in the ownerships network, the financial organizations form the core, and banking organizations hold strategic locations in the network. In the transactions network, the government organizations and agencies form the core, and defense‐related organizations form the backbone. In contrast, with the donations network, no specific domain of organizations forms either the core or the backbone.

The Impact of Federal Home Loan Bank (FHLB) Advances on Small Business Lending by Community Banks—2010–2016

Abstract In this paper, we examine the relationship between small business loan growth and growth in core deposits and Federal Home Loan Banks (FHLBs) advances from 2010 to 2016. Controlling for other effects, we find that the relationships between small business loan growth is positively and significantly related to both FHLB advance growth and core deposit growth, with the coefficient on advance growth being significantly larger than the coefficient on core deposits over the entire sample period. We also tested whether this relationship changed after 2014:3 reflecting the Federal Reserve’s relaxation of the regulatory burden on smaller banks. We find that the relationship between loan growth and core deposit growth became more positive after the change, but the relationship between loan growth and FHLB advance growth did not. As a result, we could no longer reject the hypothesis that the coefficient on core deposit growth was equal to the coefficient on FHLB advance growth after 2014:3. This provides some empirical support that the regulatory changes in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (DFA) influenced small business lending by strengthening the impact of the growth in core deposits on the growth of small business lending, complementing the work of Bordo and Duca (2018) that changes in DFA had some unintended negative consequences for lending to small businesses. It also suggests that lowering the regulatory burden faced by community banks (which have a larger proportion of core deposits to total assets than non-community banks) could improve the incentive to increase small business lending. It also implies that FHLB advances remain an important funding tool at the margin to give commercial banking organizations greater liquidity and flexibility in funding their balance sheets.