Big Banks Research Articles

Aspect of Power Transformer Design and Optimization

Transformer is one of the most important components of power system. Preliminarily it looks a simple device but from analysis and innovative point of view it is the big bank of engineering, which comprises civil, mechanical, chemical and electrical engineering. It’s the time of taking challenges and respective solution of minimizing cost of transformer without affecting customer specifications. This is only possible by design optimization process. Optimization is the process of making something better. Problems in engineering, economics and physical and social sciences entail the optimization (minimization or maximization) of an objective function subject to certain constraints (restrictions and tradeoffs). This paper deals with modern design optimization of core type power transformers. Different methods are presented to solve important transformer design problems. Keywords: Transformer design, tranmsformer design optimization(TDO), magnetic circuit, no-load losses, efficiency, sequential quadratic programming (SQP), MATLAB, TDO by iterative method Cite this Article Chirag Parekh, Chetan Kotwal, Hiral Upadhyay. Aspect of Power Transformer Design and Optimization. Trends in Electrical Engineering. 2017; 7(1): 8–18p.

Relationship banking and bankruptcy resolution in Spain: The impact of size

Within the framework of asymmetric information, the present work has the aim of analysing the influence of relationship banking in bankruptcy resolution, with particular reference to firm size. The obtained results, from a sample of 622 micro- and small and medium-sized enterprise (SME) non-financial and unlisted firms that filed for bankruptcy in 2010 (resolved by the end of 2014), allow us to conclude that: (1) SMEs are more likely to survive than micro firms; (2) the number of relationships banking is not relevant; (3) maintaining relations with one of the big banks, especially the largest bank in a country, increases the likelihood of reorganization, as opposed to liquidation.

Market Segmentation of 92 Arab Banks

The aim of this paper is to conduct market segmentation of Arab banks and suggest a model to classify them into cohesive segments on the basis of their financial ratios as a guideline for future consolidation. Twelve financial ratios taken from Bankscope Database have been retrieved for 92 Arab banks for the year 2015. In view of the sensitivity of multivariate analysis to the normality assumption, it was decided to use the common log transformation. Factor analysis is used as a data reduction technique to find twelve financial ratios. Cluster analysis is then used to separate the 92 Arab banks into five different performance groups (segments). Multi-discriminant statistical analysis is used to answer the question: can a combination of financial ratios be used to predict bank’s group membership? Findings of the study show that multidiscriminant analysis reveals that coverage ratio, profitability and efficiency separate the groups more widely than other financial ratios. The classification matrix shows that 98.9% of original banks are correctly classified. What’s more, to go after a more efficient risk policy, this paper recommends merging big banks with small Arab banks that are less profitable, less efficient, and in weaker condition than their non-acquired peers in addition to merging huge banks operating in different Arab countries. Results of this study should provide insight for future researchers. Also, this piece of research bridges the gap between financial ratio analysis and multivariate statistical analysis for Arab banks.

The Role of Structural Funding for Stability in the German Banking Sector

We analyze whether, and if so by how much, stable funding would have contributed to the financial soundness of German banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity mismatches in the wake of the financial crisis via the Net Stable Funding Ratio can be expected to have been fully implemented. Using a dataset that contains information on critical events of German banks, we find that financing loans using fewer customer deposits would have been associated with a higher probability of financial distress for savings banks and credit cooperatives. A one percent rise in the loanto-deposit ratio from 1995 to 2013 corresponds to an increase in the probability of experiencing a critical event, implying approximately two additional savings banks and two additional credit cooperatives in financial distress. No such effect can be detected for commercial banks (excluding big banks), which are found to be far more heterogeneous with respect to their business models.

A Call for Love in the Face of Hatred

A Call for Love in the Face of Hatred

Comprehensive Study on Strategic Management Accounting Techniques in Jordan Banks

There are many types of Strategic Management Accounting Techniques (SMA) that are used in many companies around the world. These techniques are ABC, COQ, SCM, VCC, BSC, EMA, benchmarking, CPA, valuation of customer assets, competitor position monitoring, competitor cost assessment, and customer lifetime value, Life Cycle Costing (LCC), Target cost, Attribute cost. In this paper, we make a comprehensive study on managements cost techniques that are used in Jordan Banks. We held our methodology by questionnaires that have been sent to one of the biggest banks in Jordan in which is the Jordan Housing bank. The results shows that 5 of 15 SMA that have the strong agree of usage, while 2 have partial agree of usage in this bank.

Developing Microfinance Banking in Nigeria

Microfinance bank is fast becoming a household name globally due to its acceptance as a means of reaching those that were not served by the conventional big banks. However, the concept and practice of Microfinance bank is still a novelty in Nigeria. This paper examines different concept of Microfinance as well as the origin of this sustainable finance idea. Salient issues that need to be considered by the government, regulators, operators and the general public were examined and further make relevant recommendation that will accelerate the growth of this type of banking in Nigeria.

Risk Management in Microfinance Institutions

Microfinance is fast becoming a household name globally due to its acceptance as a means of reaching those that were not served by the conventional big banks. The survival of microfinance institutions in any country depends majorly on the overall political and economic environment of such a nation. However, the greatest challenge the microfinance institutions will face globally in pursuance of its financial intermediary role is how best to manage its credit and risk exposures in comparison with the rising competition, sophistication and turbulent economic and social environment especially in developing nations. After examining different concept of microfinance and risk management, this paper focus on those peculiar risks associated with microfinance business and suggested how regulators and operators in the sector can best guide against distress or imminent collapse while striking a balance between profitability and unhealthy risk exposure.

Banks, Regions and Development After the Crisis and Under the New Regulatory System

Abstract One of the most evident consequences of the Great Financial Crisis has been a rapid expansion of banking regulation. We argue that the burden of the new regulatory system is asymmetric, driving small banks to the “too-small-to-survive” zone, while reinforcing the “too-big-to-fail” protection for big banks. The asymmetric effect on banking structure produces related asymmetries on firms and regional economies, in light of the fact that small firms and peripheral regions are highly dependent on bank credit and need strategic proximity of banking structures. Finally, our review of the literature on different countries and on different periods of time, including the financial crisis years, suggests the importance of a differentiated banking model when firms and regions are heterogeneous. There is no obvious optimal size of bank. Banken, Regionen und Entwicklung nach der Krise im Rahmen des neuen regulatorischen Systems Zusammenfassung Eine der offensichtlichsten Auswirkungen der globalen Finanzkrise ...

Financing Rhenish capitalism: ‘bank power’ and the business of crisis management in the 1960s and 1970s

The German tradition of Hausbanks financing industrial enterprises over long periods, often accompanied by equity participation and memberships on supervisory boards, is considered a core element of Rhenish capitalism. Reconsidering the discussion about ‘bank power’ that has often referred to this system of corporate finance, this article explores the opportunities and limits of influence encountered by German big banks vis-à-vis their customers from big industry. Five case studies focusing on the management of financial crises are presented to demonstrate that, in practice, banks could only obtain control in cases of emergency, sometimes even against their will and at high cost.

Systemic risk measurement in banking using self-organizing maps

This paper utilizes neural network mapping technology to assess the dynamic nature of systemic risk over time in the banking industry. We combine the nonparametric method of trait recognition with self-organizing maps (SOMs) to generate yearly pictures of the 16 largest U.S. banks’ financial condition from 2003 to 2012. Results show that systemic risk was gradually rising prior to the 2008-2009 financial crisis and peaked in 2009. Thereafter big banks were recovering but considerable systemic risk lingered. Implications to bank regulatory policy and credit risk measurement are discussed.

How Enron used Accounting for Prepaid Commodity Swaps to Delay Bankruptcy for One Decade: The Shadowy Relationships with Big Banks

This study addresses two important, but less known, factors that contributed to Enron’s collapse. (a) The SEC’s granting Enron in January 1992 a unilateral privilege to use mark-to-market for energy contracts. Enron had a full discretion to estimate the market values of its contracts and reported the changes in these values as a steady increase in profits without disclosing the source. (b) The role of big banks in conspiring with Enron’s top executives to design structured finance contracts that allowed Enron to loans as cash flow from operations for nearly one decade. More than 24 contracts of prepaid commodity swaps and prepaid commodity forward contracts were executed on paper through special purpose entities established by JPMorgan Chase and Citigroup. Enron borrowed a total of ($8.7 Billion between 1992 and 2000 using these structured finance contracts disguised as commodity swaps. The absence of accounting guidance for prepaid commodity swaps gave Enron the way to manipulate its financial statements with impunity to satisfy management goals at the expense of investors.

How Enron Used Accounting for Prepaid Commodity Swaps to Delay Bankruptcy for One Decade: The Untold Story

This study addresses two important, but less known, factors that contributed to Enron’s collapse. (a) The SEC’s granting Enron in January 1992 a unilateral privilege to use mark-to-market for energy contracts. Enron had a full discretion to estimate the market values of its contracts and reported the changes in these values as a steady increase in profits without disclosing the source. (b) The role of big banks in conspiring with Enron’s top executives to design structured finance contracts that allowed Enron to loans as cash flow from operations for nearly one decade. More than 24 contracts of prepaid commodity swaps and prepaid commodity forward contracts were executed on paper through special purpose entities established by JPMorgan Chase and Citigroup. Enron borrowed a total of ($8.7 Billion between 1992 and 2000 using these structured finance contracts disguised as commodity swaps. The absence of accounting guidance for prepaid commodity swaps gave Enron the way to manipulate its financial statements with impunity to satisfy management goals at the expense of investors.

Community bank product design within an asymmetric competitive market

Purpose – The purpose of this paper is to assess product and service arrays of community banks within competitive markets that are impacted by varying sized financial institutions. A cost efficiency model is used to understand the relationship of product offerings and business cycle response upon bank performance. Design/methodology/approach – A cost efficiency model is used to understand the relationship of product offerings and business cycle response upon bank performance. Markets comprised of alternate size and type of financial institutions are compared. Findings – Greater values of X_EFF i when institutions compete are observed in this analysis. Cost efficiency is lowest when community banks are the only institution in the market, and second lowest when credit unions are the only competing institutions. Call report data are analyzed from 1994 to 2013. The number of big banks increases community bank efficiency and efficiency of large banks. Also, the number of community banks does affect big bank cost efficiency. The magnitude of the effect pertaining to the number of community banks upon big bank efficiency is much smaller than that of the number of big banks on community bank efficiency. Originality/value – This study considers cost efficiency and profitability as measures of institution on the performance of a competing institutional type. The modeling approach uses cost efficiency as a method of observing the performance of financial institutions and an explanation of how firms persist, grow, and respond to changes in technology or regulation. The effects of the presence of each type of financial institution on the performance of another type are compared. Situations in which any number of one or more institutional types is present in a market are considered for analysis purposes.

Understanding Financial Instability: Minsky Versus the Austrians

Abstract Although Minsky’s interpretation of Keynes’s macroeconomics and essential message clashes with authoritative alternative interpretations, it has become increasingly influential during the years following the Global Financial Crisis, even in mainstream circles. This paper offers a critical evaluation of Minsky’s Financial Instability Hypothesis from the perspective of the alternative Austro-Wicksellian paradigm. Although some of the similarities and/or analogies between Minsky’s approach and that of the Austrian School suggest a more than merely superficial affinity between the two theoretical frameworks and although some scope for cross-fertilization between both approaches can be found, both theoretically and empirically, at a fundamental conceptual level both theories remain incompatible and difficult if not impossible to reconcile, in particular in terms of fundamental causality and in terms of policy conclusions and prescriptions. Despite the fact that Minsky’s policy conclusions are multifaceted and somewhat eclectic, they manifest a lack of familiarity with the conclusions of the Austrian analysis of the problems of central planning by Big Players such as Big Bank and Big Government. Both approaches also offer contrasting interpretations of the historical experience of the Global Financial Crisis.

Is the Rise of Financial Digital Disruptors Knocking Traditional Banks Off the Track?

The long-term fallout from the 2008 global financial crisis created several deep fractures in traditional-banking models. Most of the sectoral attention today has focused on weak operating profits and balance-sheet performance, especially the risks arising from the negative-rates environment and the collapse in yields on traditional assets, such as highly rated sovereign and corporate debt. Second-tier concerns in boardrooms and amidst C-level executives relate to the continuously evolving regulatory and supervisory pressures and rising associated costs. Finally, the anemic dynamics of the global economic recovery are also seen as a key risk to traditional banks’ profitability. However, from the longer-term perspective, the real risks to the universal banks’ well-established business model come from an entirely distinct direction: the digital-disruption channels that simultaneously put pressure on big banks’ core earnings lines and create ample opportunities for undermining the banking sector’s key unique selling proposition — that is, security of customer funds, data and transactions, and by corollary, enhancing customer loyalty. These channels are FinTech innovations — including rising data intensity of products on offer and technological threats, such as rising risks to cybersecurity. This two-pronged challenge is not unique to the banking sector, but its disruptive potential is a challenge that today’s traditional banking institutions are neither equipped to address nor fully enabled to grasp.

Book Review: 'JP Madoff:The Unholy Alliance between America's Biggest Bank and America's Biggest Crook'

This is a review of a book that describes the complicity between America’s biggest bank, JP Morgan Chase and the major financial fraud by Bernard Madoff. It makes a compelling case that bank officials should have known that of Madoff’s illegal activity fraud. Bank officials however looked the other way because they profited substantially from their relationship with Madoff.

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.

The Rescue of Failing Credit Institutions. What in Return?

Banks are unique in boosting the economy by producing and providing money. Although banks profit is guaranteed, potential risks must be assessed properly. In this case, the primary benefit big banks obtain is confidence to be rescued in case of failure threats. Relevant EU law is analysed in this paper to argue that interests not only of few groups of people must be evaluated in bail-out policy; and society shall be aware of contribution and losses brought by banks. However, bail-outs shall not be a primary and only approach to keep banks alive. This contribution aims to provide the idea that banks, as a central institution in economic system, must be concerned about social wellbeing of the society and environmental issues. Moreover, banks should make a clear and tangible contribution to improving the social and environmental wellbeing of society.

Accounting Measuring – Rod For Buisnesses On Their Benefits To Society

Banks in Nigeria are laying off staff resulting in shoddy services due to inadequate staff. Also the Federal Government of Nigeria inundated with an already high unemployment number (12.1% and 21.5% for youths) is worried and urging banks to reduce the layoff rate. A school of thought (Onuma, 1979), canvasses that provisions of Employment should be deemed a corporate social responsibility for as long as it can afford it. Based on the afore-stated, there is need to examine some big banks in Nigeria to determine whether they have been forth – coming in meeting their obligations to the society in providing adequate level of employment via a vis their respective earnings. A measuringrod was derived and used for the assessments. Motown Corporation (USA) had a mixed result over 3 – year period. The six (6) Nigerian banks showed a mixed result too. 50% scored below par in performance. This was in regard to their employment provision obligation.