Structure Of Banking System Research Articles

Институциональный анализ структуры региональной банковской системы РФ

Институциональный анализ структуры региональной банковской системы РФ

Efficiency and Competition in Banking Industry: Case for ASEAN-5 Countries

This paper analyzes the level of the efficiency and competition (market structure) of ASEAN-5 banking industry from 2005 until 2016. Two methods were employed, i.e. Stochastic Frontier Analysis and Adjusted Lerner Index. The former is utilized to measure the bank efficiency in ASEAN-5 countries and the latter is applied to measure the bank competition (market structure) in ASEAN-5 banking industry. In order to connect the efficiency and competition level of ASEAN-5 banking industry, this study also utilizes quadrant analysis based on three different periods, namely the period before the global crisis (2005-2008), the period after global crisis (2009-2015), and the period after the establishment of ASEAN Economic Community –AEC- (2016). The results reveal that on average, the efficiency and the competition level of banks in ASEAN-5 countries are found to be relatively high. The competition in ASEAN-5 banking industry could be classified as monopolistic where each bank competes by diversifying their products or segments.

WORLD BANKING SYSTEM: POST-CRISIS RECOVERY?

The article studies the state of the world banking system recovery after the global crisis. It is stated that by the indicators of financial depth, capital adequacy and profitability of the biggest banks the world banking system is nowadays the most stable and profitable for the entire post-crisis period of its development. It is noted that the structure of the modern world banking system corresponds to the spatial structure of the world economy, which consists of different taxonomic levels of regions and where the role and importance of global regions is being enhanced against the background of the globalization processes deepening. Based on the study of changes in the distribution of bank assets and banks’ profits between global regions, the rankings of the biggest banks in the world, indicators of return on assets and return on equity of banks from different regions, regional peculiarities of mergers and acquisitions in the banking sector, progress in the implementation of the requirements of the Basel Committee on Banking Supervision, regional features of the post-crisis recovery of the world banking industry are identified. It is proved that there is an increasing degree of unevenness in distribution of bank assets between global regions, and a tendency of increasing bank assets concentration in three main regions – Asia Pacific, American and European regions – is found out. On the basis of assessment of the transformational shifts in the regional structure of the world banking industry changes of the global regions role in the world banking system in the process of its post-crisis recovery are identified.

Growth and performance of regional rural banks-With special reference to Baroda Rajasthan Keshtriya Gramin Bank

Rural banking system occupies an important position in the structure of Indian banking system. Being an agrarian economy with more than 50% of the population depending on agriculture for their livelihood, rural banking has acquired increasing relevance in the recent times. Regional Rural Banks play a very important role for the growth of Indian economy. The RRBs ignore the richer sections of the village society in providing direct financial assistance. At present time most of the RRBs in India are suffering from various problems of overdue, recovery and deposits mobilization. The main objective of this study is to analyze key financial indictors of Baroda Rajasthan Keshtriya Gramin Bank. And the study period is taken from 2013 to 2018. The study is based on Secondary data. And the data was collected from annual reports of NABARD and BRKGB. This study finds and concludes that he growth of the branch is also increasing the business of the bank and its performance is also improved by increasing business.

Bank concentration, competition, and financial inclusion

Expanding access to financial services holds the promise to help reduce poverty and foster economic development. However, little is still known about the determinants of the outreach of financial systems across countries. Our study is the first attempt to employ a large panel of countries, several indicators of financial inclusion and a comprehensive set of bank competition measures to study the role of banking system structure as a determinant of cross-country variability in financial outreach for households. We use panel data from 83 countries over a 10-year period to estimate models with both country and time fixed effects. We find that greater banking industry concentration is associated with more access to deposit accounts and loans, provided that the market power of banks is limited. We find evidence that countries in which regulations allow banks to engage in a broader scope of activities are also characterized by greater financial inclusion. Our results are robust to changes in sample, data, and estimation strategy and suggest that the degree of competition is an important aspect of inclusive financial sectors.

Влияние усиления банковского надзора на структуру банковской системы: Выводы на основе агентно-ориентированного моделирования

Влияние усиления банковского надзора на структуру банковской системы: Выводы на основе агентно-ориентированного моделирования

Study on Small and Medium-Sized Enterprises in Italy: The Relationship With the Banking System and Financial Structure Choices

Study on Small and Medium-Sized Enterprises in Italy: The Relationship With the Banking System and Financial Structure Choices

INCREASING EFFICIENCY OF THE BANKING INSTITUTIONS ACTIVITY

Introduction. The problems of banking efficiency improvement have become very important in the conditions of economic instability and the period of increasing competition in banking services market. It is being changed both the banking system structure, and the business processes which were formed in it. Such changes demand the new approaches to reserves searching and banking system optimization objects. The innovation in the banking sector, methods of innovative bank development are the main in modern conditions. The purposeof this article is to identify the need to develop and apply innovative approaches in banking institutions to ensure their effective operation. Results. The article deals with the theoretical and practical principles of ensuring the efficiency of banking activity. It is characterized the main tendencies of the risk manifestation violation of banking activity efficiency. The trends of an effective development and the long-term growth of banking sector nowadays are described. The ways of formation and implementation of the innovative aspects of bank effective work providing system are analyzed. Special attention is paid to the importance of the cooperation between banks and financial companies. Conclusions. The problems of the banking system providing efficiency can be addressed customer service innovative technologies and the new products and services implementation, such as: to use the advanced hardware and software, to increas efficiency of personalization and channel optimization, digital and biometric identification, to use the large data, intellectual property and expanded analytics, credit marketplays, and artificial intelligence, to improv integrated multi-channel delivery and new loyalty programs.

Impact of Basel II & III Implementation to Mitigate Bank Risk: A Study on Al-Arafah Islami Bank Limited

This study has examined the implementation process, effects, outcomes, of Basel II & reforms of Basel III within the Al-Arafah Islami Bank Limited. The purpose of Basel II is to create regulation about how many capital banks need to put away to guard against the financial and operational risk. Basel III newly introduced accord provides stricter approach toward managing risk with capital in order to strengthen capital & liquidity structure of international banking system. The purpose & aim of this study is to analyze capital adequacy framework whether it is complied with the regulatory supervisions under the prescription of Bangladesh bank as well as its capability to absorb shocks arising from financial and economic stress. Published disclosures & financial statements of last five years are used to collect data. OLS regression model is used to find out the relationship between profitability and capital adequacy requirement in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios).capital adequacy ratio of this bank is higher than minimum standard level. The average capital adequacy ratio (CAR) is about 13.78%. The result of regression analysis is statistically significant and there is a positive relationship between capital and return on asset (ROA).If the capital adequacy requirement is increased the return on asset (ROA) will be increased. Islamic Banking sector has some uniqueness compared to the conventional Banking sector. Products are linked with real economic activities that are why financial crisis of 2008 did not create any extreme pressure on this sector.

Geography and structure of the banking sector: Trends in the world and Russia

The article analyzes trends in the evolution of the structure and geography of Russian banking industry. It shows how three types of distances (operational, functional, and those between offices of competing banks) change under the influence of the concentration in banking business and reduction of the number of banks. The authors also provide a typology of regions according to the availability of local banks and non-local branches. We test a well-known hypothesis about the existence of a connection between the structures of the economy and its banking sector and show that the focus of regional banks’ activities in Russia has shifted towards SMEs, but we have not found a correspondence between the structures of regional economies and their banking sectors. The parameters of regional banking systems differ, and although many regions have their own specifics, such differences are not related to the structures of regional economies.

AN ANALYSIS OF STRUCTURE, BEHAVIOR AND BANKING PERFORMANCE OF ISLAMIC BANKING IN INDONESIA

This study aims to examine the impact of market structure and market behavior on the Islamic banking performance in Indonesia. Using the SCP model framework, this study examines five largest Islamic banking in Indonesia. The result reveals that market behavior, Islamic banking performance, third party funds, the business scale and the target market of Islamic banking have a significant impact on the market structure of Islamic banking industry; the market structure, performance of Islamic banks, types of financing product, profit sharing rate and distribution scale have a significant impact on the behavior of Islamic banking industry; and the market structure, market behavior, human resources development, the quality of Islamic banks’ financing and the credibility of Islamic banking financing have a significant impact on Islamic banking performance in Indonesia. Keywords: Market Structure, Market Behavior, Market Performance, SCP Framework, Islamic Banking Industry, Indonesia Journal: Eurasian Journal of Economics and Finance

Measuring the efficiency of Chinese commercial banks: An analytical model and empirical validation

In this paper, DEA model is used with the panel data of 21 commercial banks gathered during period 2006–2014 to measure the technical efficiency, pure technical efficiency and scale efficiency of commercial banks in China. Furthermore, a regression model for the factors affecting the efficiency of commercial banks is established with three levels includes the banking industry structure, the micro-level of commercial banking, and the macro-economic performance. The results show that the improvement of market competition level is beneficial to promote the efficiency of commercial banks. The risk control capacity, business innovation capability, and foreign capital involvement have positive influence on commercial banks’ efficiency. The market share and scale efficiency are inversely proportional in large state-owned commercial banks. The market share and scale efficiency are proportional in joint-equity commercial banks and municipal commercial banks. The broad money supply growth rate has positive influence on commercial banks’ efficiency improvement.

Market structure and performance of Malaysian banking industry

Purpose The main purpose of this paper is to examine the relationship between the market structure and financial performance of Malaysian commercial banks over the period of 2000 to 2011 by testing the structure-conduct-performance (SCP) and efficient-structure (ESH) hypotheses. Design/methodology/approach Data envelopment analysis (DEA) is employed to measure the efficiency of banks, while concentration ratio is used to assess the market structure of Malaysian banks. Next, utilizing the least squares method, both variables – market structure and efficiency of banks – among other explanatory variables (market share, operating expenses, loans ratio and size of banks) are regressed upon the dependent variable, namely financial performance of banks represented by return on asset (ROA), return on equity (ROE) and net interest margin (NIMTA). Findings The concentration of Malaysian banking industry is at a declining trend; structurally speaking, Malaysian banks are more competitive due to less market concentration. In terms of efficiency, the DEA results reveal that Malaysian banks are operating below their capacity at 40 per cent of efficiency. Thus, Malaysian banks could reduce their utilization of inputs by 60 per cent to operate on the efficient frontier. Next, the results offer support to ESH, which implies that market concentration and banking efficiency determines the profitability performance of Malaysian commercial banks. Originality/value Past studies on Malaysian banking sector had tended to focus either on measuring the performance or assessing the market structure of banks. Thus, this study attempts to fill the gap in the literature by testing the nexus between the market structure and the performance of banks.

PRAKTIK GOVERNANCE PERBANKAN INDONESIA DITINJAU DARI ASPEK RISIKO

ABSTRACT - Performance -based banking structures Indonesia does not have a normal life charactersbanking and still largely determined by the ideological and political policies of the government. Bankingrecovery by using a very protective manner, such as from the purchase of government bonds with limited ormargin lending and guaranteed withdrawal. Various indicators such as bank loan-deposit ratio ( LDR ) andthe structure of third-party funds that are still dominated by short-term funds such as checking and savingsshows that the bank has not been able to carry out its primary function in the economic system, intermediation.In the framework of the restructuring and recovery of the national banking industry, Bank Indonesia hastaken some of the policies that are considered necessary. Some of these policies include the implementation of theprinciples of risk management (according to Bassel Accor) and Know Your Customer principles. Overall, thepolicy is structured in parent programs are often known as the Indonesian Banking Architecture (API). APIis expected to be the blue print as well as a reference for the Indonesian banking industry structure that isconsidered ideal for BI.Determine the number of actors performing the banking system, such as regulators, supervisors,shareholders, directors, management, internal audit, external auditors, rating agencies and owners of customerfunds. The role of each differ according to the position, accountability mechanisms and social expectations. ButPraktik Governance Perbankan IndonesiaDitinjau dari Aspek RisikoErwin H, Asti S, Wahyu NVolume 1, Nomor 2, pp 1-142the articulation of good governance as a protrusion of the mission, capacity and relationships to be aprerequisite for growth and stability.The method used is descriptive qualitative approach. Based on the results of the study concluded that thepractice of governance in the Indonesian banking system has not been implemented optimally.Keywords: Keywords: Banks, Risk, Governance.

The Comparative Political Economy of Basel III in Europe

The Basel III Accord was the centrepiece of the international regulatory response to the global financial crisis, setting new capital requirements for internationally active banks. This paper explains the divergent preferences on Basel III of national regulators in three countries that approximate what are frequently presented as distinct varieties of capitalism in Europe — Germany, the United Kingdom and France. It is argued that national regulators setting post crisis capital requirements had to reconcile three inter-related and potentially conflicting objectives: banking sector stability, the competitiveness of national banks and short to medium term economic growth. The different national preferences on Basel III reflected how different national regulators defined and pursued these objectives, which in turn reflected the structure of national banking systems — specifically, systemic patterns of bank capital and bank-industry ties.

Consumption Smoothing and Borrowing Constraints: Evidence from Household Surveys of Iran

We use Iranian Household Expenditure and Income Survey, to analyze the dynamics of consumption of the households. We observe evidence of excess sensitivity in a cohort pseudo panel of Iranian households. Excess sensitivity, however, is absent for government employees who have better access to finance due to the structure of labor market and banking system in Iran. Our results support the idea that borrowing constraints is the main cause for evidence of excess sensitivity. This indicates that actual consumption prole is sub-optimal and hence deepening financial access will decrease the welfare loss of this sub-optimality. In the paper, we have also provided estimates of elasticity of inter-temporal substitution for the Iranian households for the first time, and they are consistent with those of other developing countries.

DAMPAK RISIKO DEFAULT BANK TERHADAP RISIKO SISTEMIK PERBANKAN DAN RISIKO SISTEMATIK BURSA SAHAM DI LIMA NEGARA ASEAN

Global financial crisis in 2008 has driven special attention to systemic banking sector risk that cause byindividual bank default. Though, banking crisis significantly affect economic growth and national macroeco-nomic condition. Individual bank default non only affect banking industry but also has serious injured theeconomy. Bank default risk not only affect systemic risk but also systematic risk.ASEAN financial integrationplan raise a need to understand characteristics of ASEAN banking industry. Close relationship and intercon-nection between ASEAN economies will make individual bank default a serious issue that its effect will spreadto all ASEAN economy. This research aimed to investigate the effect of bank default risk on systemic andsystematic risk in 5 ASEAN countries. We find that bank default risk significantlyraised systemic risk, esspeciallyin country with high concentration in its banking industry structure. Big banks tend to more serious effect onsystemic risk. Systematic risk tend to be affected by macroeconomy condition, rather than default risk ofindividual bank.

Bank Scale of Economies, Banking Industry Concentration, and Competition Level: The Indonesian Case

Banking sector efficiency in a country is directly influenced by regulations that set up by the banking authorities in that country, especially what kind of banking industry structure that regulator intend by those regulation. Indonesian Banking Architecture which encourage mergers and acquisitions of smaller banks, has a clear target that Indonesian banking industry should have a leaner industry structure with fewer number of banks but with relatively large assets, higher industry concentration higher and more tighter competition. This policy is driven by the regulator’s belief that Indonesian banks has not achieved its economies of scales and competition is relatively low so that the Indonesian banking operating costs are among the highest among Asian countries. The opposite actually happened in the USA where the regulator is precisely to prevent mergers between major banks due to economies of scale bank in the United States has been exceeded. The reserach results showed the group of large banks in Indonesia is more efficient than medium and small banks and the efficiency is more due to economies of scale than caused by the concentration of the industry and the level of competition between banks.

Pengasingan Pekerjaan dan Perbezaan Upah Jantina di Malaysia

The purpose of this paper is to investigate the evolution of market concentration and competition in Malaysian dual banking industry for the period of 1997-2013. This study utilized structural approach to investigate changes in the market structure particularly the level of concentration and competition that contributed by several structural changes which take place in the dual banking system. According to structural approach, concentration plays an important role in examining the link between concentration and competition. Therefore, present paper utilized the structural approach to measure various concentration indexes to provide significant evidence on the changes in the market structure of Malaysian banking industry for the largest available data set of 1997-2013. Pearson correlation analysis was also used to examine the consistency of those various measures used in this study. The paper found evidence that structural changes have altered the market structure of the banking industry which comprises of Islamic and conventional banking system. The results also indicate that dual banking industry operates in the monopolistic competition structure. Therefore, concentration indexes can be used by authorities to decide on the optimal number of banks operating in the industry.

Trend Analysis of Lending Performance of Erode District Central Cooperative Bank

The central cooperative banks occupy a crucial position in the pyramidal structure of agricultural cooperative banking system. They from the backbone of the agricultural credit structure and provide the vital line between the primary agricultural societies and the state apex cooperative bank functioning at the state level. The study is based on secondary data obtained from annual reports of EDCCB comprising profit and loss a/c and balance sheet for the period of 2008-09 to 2012-13. In addition, magazine, journals, text books and reports have been extensively referred to collect various information. Trend analysis is used to analyse the data. During the study period five years the trend analysis found a satisfactory position as decreased in outstanding of loan.