Bank Approach Research Articles

VALUATION OF STOCK VALUE WITH RELATIVE VALUATION AND ABSOLUTE VALUATION APPROACH IN BANKING SECTOR AT LQ 45 PERIOD 2015-2020

Investment in Indonesia during the COVID-19 pandemic increased. One of the significant and good indices in describing the condition of stocks in Indonesia is LQ45. Dlaam LQ45 The largest market capitalists are held by the financial sector Specifically the bank subsector therefore it needs to be further researched regarding these stocks. One of the interesting things is whether these stocks deserve to be considered a good investment instrument. One of the efforts to assess investment instruments is through the valuation stage. The valuation method used there are two, namely relative valuation with price to book value benchmarks and price earnings ratio and absolute valuation with dividend growth model method and some modifications of the model. From the results obtained, the recommendation of the position of the four financial stocks in LQ45 varies depending on the valuation technique used. On this basis, it can be said that it is important to know, know, and ethically the valuation techniques used are appropriate, good, and correct.

The Historical Projections of Poverty Trapped in the Hegemony of the Capitalist Ideology within the Frame of the World Bank's Quasi-War on Poverty

The World Bank is an important international institution that plays a role in forming the perception of global poverty and the fight against poverty. Since its foundation, the Bank's approach to the concept of poverty and the policies it proposes to eliminate poverty have undergone radical changes. The study aims to reveal the theoretical and practical dimensions of the Bank's approach to poverty with their evolutionary reflections. In the study, different definitions of the World Bank regarding the concept of poverty will be included in the axis of poverty concept and different depictions of the transformation of poverty-related policies over the years. The development approach the Bank has developed for the last 40 years is likely connected to the neoliberal policies loyal to mainstream (neoclassical) economics principles. Therefore, the emphasis on the problem of poverty put by the Bank for the last few decades consists of representing the same political prescriptions to the world economies to solve the problem. In this context, it can be argued that the policies created by the Bank regarding poverty rely on ideological concerns rather than reality since it is clear that the development discourses effectuated by the Bank over the years and the policies for the elimination of poverty generated accordingly cannot be evaluated independently of the dynamics arising from the efforts of the US to perpetuate its hegemony over the international capitalist system.

Assessment of credit risk management practice in Dashen Bank

Financial stress is affecting all types of businesses across industries, but it particularly affects banks because they are a major source of capital and taking risk is an essential and unavoidable part of the banking business. Indeed, taking risk is embedded with reward, and financial crises have become a serious problem for the world in recent years. These papers evaluate Dashen Bank's approach to credit risk management. This study's primary objective is to evaluate Dashen Bank's credit risk management practices and determine how they are managed. Its primary focus is on credit evaluation in Dashen Bank. The researcher used descriptive research design, distributed questionnaires to officers. In addition to this the researchers used in- depth interview with management bodies. Both primary and secondary data collection method were used, census method were used, the study findings indicate that the bank doesn’t provide enough training for employees, the offsite follow up method placed by the bank is not successful, the credit risk management of the bank is weak also the credit collection system is not effective are among the main findings. The researcher suggest that the bank should provide strong and consecutive training for the employee, better follow up mechanism should apply new procedure should put in place to assess the capacity the client who need the long term loan.

Mekanisme Penanganan Pembiayaan Bermasalah Pada Produk KPR Syariah Bank Sumut Syariah KCP Kota Baru Marelan

The researcher is interested and aims to investigate and analyze the mechanism for handling problematic financing implemented by Bank Sumut Syariah, especially at KCP Kota Baru Marelan. This research adopts a type of field research with a focus on phenomena or symptoms that occur in the field related to problematic financing in Sharia Home Ownership Credit (KPR) products provided by PT. Bank Sumut Syariah, especially at the Sub-Branch Office (KCP) Kota Baru Marelan. The results of this research are based on observation and scientific logical analysis of data collected from the field. Based on in-depth discussions, Bank Sumut Syariah, especially at KCP Kota Baru Marelan, has implemented a mechanism for handling problematic financing by paying attention to sharia principles. This process involves proactive communication, involvement of sharia experts, and customer openness. Customers, as represented by Mrs. Nilam Kurnia, gave positive testimony regarding the bank's approach in handling problematic financing.

Experience of Equity-based Islamic Shares in Pakistan

Modarabah and leasing stocks, which are listed on the Karachi Stock Exchange (KSE) since 1985, operate on the Islamic concept of financing under a well defined contractual framework supervised by the State Bank of Pakistan (SBP). The Islamic stocks had mushroom growth during the first sub-period of reforms1 and were exempted from various taxes during the initial 3 years of their operation. For investors these shares were a very attractive opportunity to build a quality portfolio and earn high returns. Due to bureaucratic and non-professional approach of banks in Pakistan these firms became popular alternatives lenders to medium and small sized business borrowers. The turn around time and efficient handling of the proposals made them more attractive.

Fighting money laundering with technology: A case study of Bank X in the UK

This paper presents a longitudinal interpretive case study of a UK bank's efforts to combat Money Laundering (ML) by expanding the scope of its profiling of ML behaviour. The concept of structural coupling, taken from systems theory, is used to reflect on the bank's approach to theorize about the nature of ML-profiling. The paper offers a practical contribution by laying a path towards the improvement of money laundering detection in an organizational context while a set of evaluation measures is extracted from the case study. Generalizing from the case of the bank, the paper presents a systems-oriented conceptual framework for ML monitoring.

The evolution of the world bank’s procurement framework: Reform and coherence for the 21st centur

In 2011, the World Bank announced its intention to conduct a holistic review and reform of its procurement framework. This reform was intended to ensure that its procurement system, which is the means through which the Bank disburses developmental loans and grants is in line with modern trends in procurement, is flexible enough to respond to unforeseen challenges and is coherent. This paper examines both how Bank procurement has evolved since the first formal regulations were issued in 1964 and the implications of the recent reforms for the Bank and its borrowers. Readers will see that ongoing reforms evidence a significant change for the Bank's approach to procurement and its relationship with its borrowers and will dramatically affect the way the Bank-funded procurements are conducted.

Gender and Infrastructure in the World Bank

This article conducts a critical analysis of the World Bank's current infrastructure strategy from a feminist perspective, arguing that failures to define gender and set meaningful targets and indicators have meant that gender has not been integrated into the implementation of infrastructure projects. It sets out three limitations to the Bank's approach to gender and infrastructure: lack of awareness of gender in the four sectors that comprise infrastructure; the Bank's narrow approach to gender equality and women's empowerment; and the failure of the Bank to mainstream gender in its current infrastructure strategy.

ESTABLISHING AN OMBUDS FUNCTION: THE ASIAN DEVELOPMENT BANK APPROACH AND LESSONS LEARNED FOR OTHER INTERNATIONAL FINANCIAL ORGANISATIONS

Over recent years, many organisations, both public and private, have been establishing an ombuds function as an informal conflict resolution mechanism to resolve work-place disputes and concerns. This article examines the establishment of conflict resolution mechanisms in international financial organisations (IFOs) including the World Bank Group and the major regional development banks in Africa, Asia, Latin-America, and Europe. The article examines the Asian Development Bank's approach in establishing an ombuds function. The articles concludes with suggestions in moving forward of the ombuds offices in the IFOs and the lessons learned for other IFOs.

The Contradictions of Pro‐poor Participation and Empowerment: The World Bank in East Africa

ABSTRACTParticipatory approaches remain central to development practice and the World Bank continues to espouse them with the promise to make its aid more pro‐poor. Yet participation's (in)effectiveness has become the focus of renewed, polarizing debates, and assessments of the form and function of the World Bank's participatory paradigm are still contested and unresolved. Through extensive field data collected in East Africa, this article seeks to move the debate forward. It presents three interrelated arguments: (1) the World Bank's participatory approach remains largely circumscribed by a Post‐Washington Consensus neoliberalism; (2) the approach, nonetheless, pro‐actively supports pro‐poor gains, and creates space for more alternative initiatives; (3) however, its effectiveness in fostering pro‐poor empowerment is undermined by deep inequalities and political economy dynamics on the ground. Two implications are discussed, which challenge conventional wisdom. First, the World Bank's approach could be seen as a hierarchical system of elements in which certain aspects, but not others, are insulated from popular deliberation. Second, participatory development should be (re)imagined as an open‐ended process rooted in the politicization of inequality and embedded in the dynamics of capitalist development, which also points to the critical role of a developmental state.

Good Governance and Regulatory Reform, Need Public Participation in all Development Stages in Albania

This article sets out to examine World Bank's efforts at strengthening good in Albania case study, in developing countries and improving effectiveness of aid. It focuses on relationship between good and aid effectiveness in providing a critical assessment of Bank's approach to reform in developing countries. This paper scrutinizes shifts in policies and strategies of Bank during 1990s as well as research it generated to support them. The wide array of issues under governance occupies center stage in debate and agenda of international financial institutions (IFIs). The concept of captures the manner in which power is exercised in management of a country's economic and social resources for development (World Bank 1992, 1). Dervish Kaptur and Richard Webb attest: For IFIs, new mandate is a boost to their importance, but one fraught with peril. The new mission arrived at a moment when growing doubts regarding purpose and effectiveness of IFIs. On matters of public administration, Government's strategy focused on addressing two inter-related sets of interventions: (a) strengthening public financial management, including management of both public expenditures and revenues; and (b) strengthening human resource management. On matters relating to public sector human resource management, reform strategy envisaged addressing this issue in two major stages: civil service reform and broader public sector human resource management reform. During first stage, reforms aimed to create managerial and professional nucleus required to lead any serious efforts to improve accountability and performance of public institutions. Subsequently, in a second stage, reform would address larger body of public employees to improve productivity and accountability for their work and ensure that public policies, programs and services are delivered reliably and cost-effectively. DOI: 10.5901/ajis.2014.v3n3p117

The monetization of global poverty: the concept of poverty in World Bank history, 1944–90

AbstractThis article traces the history of the concept of poverty within the institutional framework of the World Bank, from its inception to its establishment of the dollar-a-day global poverty threshold. The Bank's evolving conceptualization of poverty and how it related to the development process affected the policies that were advanced to boost the productivity of underdeveloped countries. Internal and external influences and constraints conditioned the Bank's approach to poverty and its alleviation from the beginning, when poverty was conceived as a political issue beyond the scope of the Bank's mandate. Separating the political implications of poverty alleviation from the Bank's development agenda was tenuous, and by the 1970s a universal, absolute concept of poverty became the focal point of Bank operations. The eventual monetization of global poverty reflected the increasingly technical nature of the Bank's development work and its need for a practical yardstick by which to measure the success of its anti-poverty policies.

The Prospects and Challenges of Reforming the World Bank's Approach to Gender and Education: Exploring the Value of the Capability Policy Model in The Gambia

The World Bank is currently the lead education research and lending body operating internationally, including in the area of girls’ education. As such, the World Bank wields considerable power in terms of shaping the policy agendas of borrower nations and for this reason is scrutinized in this paper for its privileging of an economic-instrumentalist normative framework for education policy development within which formal schooling is viewed exclusively as a means for economic growth, rather than as a potential tool for the achievement of social justice. An analysis of World Bank work in The Gambian education sector is used to illustrate the limits of a human capital-driven, economic-instrumentalist approach to education policy, with specific attention paid to gender and education issues and related policy solutions. We ultimately argue the value of the World Bank adopting the human capability policy approach as a means to advance World Bank education sector work.

Economic clustering of countries in the Asia‐Pacific region

PurposeThe purpose of this paper is to examine the possibility of using non‐income indicators and the self‐organizing map (SOM) approach as an alternative analytical tool to map countries' welfare status.Design/methodology/approachUsing data from 27 countries of the East Asia‐Pacific region, a welfare analysis based on non‐income indicators is implemented. The set of the selected indicators employed includes measures of social indicators as well as indicators related to the overall development framework. The empirical approach of the present paper can be described as a two‐stage procedure. In the first stage, the standard incremental SOM algorithm has been used and the two‐dimensional map produced in a hexagonal grid is presented together with the weight maps. In the second stage, the k‐means methodology has been used to cluster the prototypes produced by the SOM.FindingsThe classification produced by the two‐stage approach of the empirical analysis is compared with the baseline World Bank's income categories (based on Gross National Income per capita) offering an opportunity to assess the usefulness of non‐parametric approaches that are based on non‐income indicators vis‐à‐vis World Bank's approach in analysing welfare outcomes. The emerging picture of the empirical analysis supports the potential of the SOM as a useful and prolific analytical tool in mapping welfare outcomes.Originality/valueThis study proposes a methodology beyond the conventional ordinal rankings of the welfare of the countries based on non‐income indicators and the SOM.

On the Origins of the BIS Macro-Prudential Approach to Financial Stability: Alexandre Lamfalussy and Financial Fragility

Among international policy institutions, Bank for International Settlements (BIS) is known for its sensitivity to financial stability issues. Attention to dimension of financial stability is very typical for BIS. The Bank's macro-prudential approach first came to fore in 1986 Cross Report. It defined macro-prudential domain as the safety and soundness of broad financial system and payments mechanism. In this paper, it will be argued that Alexandre Lamfalussy, who was at BIS from 1976 to 1993, played a crucial role in shaping Bank's approach to financial stability. Lamfalussy is renowned for taking a broad macroeconomic view and for focusing on systemically important financial institutions, as failure of one of these individual institutions would threaten whole financial system. In Lamfalussy's view, there is thus very much an overlap between micro- and macro-prudential dimensions of financial stability. This paper traces Lamfalussy's analysis of financial fragility and goes into reasons for his sensitivity to it. Among main elements involved were: a Keynesian Weltanschauung (that a market economy is not sufficiently self-correcting); emphasis of Dupriez (his teacher in Louvain) on cycles; Lamfalussy's own experience as a commercial banker; BIS involvement in financial stability issues, especially Latin American debt crisis of 1982-83; and research in central banking community on financial innovations in early 1980s.

Lessons learned in content architecture harmonization and metadata models

PurposeThis paper aims to review key content, architecture, and metadata model decisions and strategies in creation of a publication portal (on DVD to start), based on a 30+ year series of flagship reports from the World Bank.Design/methodology/approachThe paper describes and analyzes key considerations and aspects of the project, including content architecture, content analysis, DTD selection, retrospective conversion, vendor management, design of metadata architectures, use of automated profiling methods, user‐information behavior, and search architectures supporting complex content architectures. It includes the challenges of applying an institutionally based taxonomy required to express subject‐matter responsibilities and relationships within the World Bank.FindingsThe team learned that the metadata behavior and architecture (inheritance, relationships, variations) are more complex than simple links between parent and child objects. The project also reinforced the importance of comprehensive and dynamic topic taxonomy for classifying content that is both historical and current. The approach to defining classes for each full report (parent) will be likely to change, given what has been learned. The team would recommend that parts be classified and the sum of the part classes be assigned to the whole report. As a result of this exploratory work, the Bank's approach to classification and indexing of report series is changing from a top‐down to a bottom‐up inheritance.Originality/valueThe study provides insights into both general and World Bank‐specific challenges in creating a publication portal and derives some best practices for content architecture, metadata architecture, and use of automated profiling methods.

Risk management, neo-liberalism and coercion: the Asian Development Bank's approach to ‘fragile states’

This article suggests that the Asian Development Bank's (ADB) approach to engaging with fragile states should be understood not as an attempt to improve development effectiveness in these countries but as a political project aimed at serving particular political and social interests. More specifically, it suggests that the ADB's approach is consistent with the recent securitisation of aid policy in many developed countries, a shift that has been driven primarily by a concern to manage the risks to developed countries posed by instability, conflict, crime and disease in fragile states, rather than developmental considerations. Second, while there are numerous ways in which these risks and development challenges could be managed, the ADB has chosen a strategy that privileges neo-liberal policies and the interests they embody over other agendas and interests. Finally, it has promoted these policies and interests through coercive means rather than allowing fragile states to exercise leadership in determining their own development strategies, as encouraged by recent international agreements on aid effectiveness such as the Paris Declaration. In this respect, the article suggests, the ADB's approach can be seen as an expression of a new mode of regional governance within the Asia-Pacific characterised by ‘regulatory regionalism’ and ‘metagovernance’.

World Bank Influence and Institutional Reform in Argentina

ABSTRACTDuring the 1990s, reforms concerned with ‘good governance’ became popular with multilateral and bilateral lenders. This trend was led by the World Bank, which claimed that in order to achieve economic development, institutions mattered. This article looks at governance reforms in Argentina, specifically in the judicial sector, and contends that World Bank involvement affected the nature, reach and depth of these initiatives. The influence of the Bank can be traced through three dimensions that have characterized its approach to institutional reform: donor‐driven designs for project reform; reliance on technical approaches; and restricted forms of decision making in project initiatives. Such an approach to institutional change conditioned domestic reform in Argentina and contributed to piecemeal and inadequate initiatives. The author also argues that the Bank's approach in Argentina can be traced to wider strategies that derive from embedded institutional practices and ideological foundations within the institution that throw into question the Bank's capacities to promote such reforms.

The evolution of the World Bank's policy towards forestry: push or pull?

SUMMARY The World Bank has historically funded, and thus heavily influenced, a significant amount of forestry activities in developing countries in recent decades. The Bank's approach towards investment in forestry has undergone major changes. Early projects financed industrial operations to the detriment of tropical native forests. In the early 1990s, the Bank's forestry strategy prioritized forest preservation. The Bank's strategy shifted again at the turn of the century, to focus on sustainable management and the role of forests in poverty alleviation. This paper examines the changes in policy direction undertaken by the Bank, in light of concurrent changes in international forest policy and the conservation community. The central question addressed is whether the Bank has led the way in bringing about change in the forestry paradigm, or were the different Bank strategies reactions to the policy environment and prevailing attitudes and pressures of the time?

How Not to Count the Poor

The World Bank's approach to estimating the extent, distribution and trend of global income poverty is neither meaningful nor reliable. The Bank uses an arbitrary international poverty line that is not adequately anchored in any specification of the real requirements of human beings. Moreover, it employs a concept of purchasing power equivalence that is neither well defined nor appropriate for poverty assessment. These difficulties are inherent in the Bank's money-metric approach and cannot be credibly overcome without dispensing with this approach altogether. In addition, the Bank extrapolates incorrectly from limited data and thereby creates an appearance of precision that masks the high probable error of its estimates. It is difficult to judge the nature and extent of the errors in global poverty estimates that these three flaws produce. However, there is reason to believe that the Bank's approach may have led it to understate the extent of global income poverty and to infer without adequate justification that global income poverty has steeply declined in the recent period. A new methodology of global poverty assessment, focused directly on what is needed to achieve elementary human requirements, is feasible and necessary. A practical approach to implementing an alternative is described.