Bank Capacity Research Articles

Predicting customer deposits with machine learning algorithms: evidence from Tunisia

PurposeThis paper aims to evaluate the performance of the multiple linear regression (MLR) using a fixed-effects model (FE) and artificial neural network (ANN) models to predict the level of customer deposits on a sample of Tunisian commercial banks.Design/methodology/approachTraining and testing datasets are developed to evaluate the level of customer deposits of 15 Tunisian commercial banks over the 2002–2021 period. This study uses two predictive modeling techniques: the MLR using a FE model and ANN. In addition, it uses the mean absolute error (MAE), R-squared and mean square error (MSE) as performance metrics.FindingsThe results prove that both methods have a high ability in predicting customer deposits of 15 Tunisian banks. However, the ANN method has a slightly higher performance compared to the MLR method by considering the MAE, R-squared and MSE.Practical implicationsThe findings of this paper will be very significant for banks to use additional management support to forecast the level of their customers' deposits. It will be also beneficial for investors to have knowledge about the capacity of banks to attract deposits.Originality/valueThis paper contributes to the existing literature on the application of machine learning in the banking industry. To the author's knowledge, this is the first study that predicts the level of customer deposits using banking specific and macroeconomic variables.

Preparation of wells using an electrohydraulic drill and modeling of heat transfer processes in heat transfer elements of a heat pump

The article discusses the use of innovative electrohydraulic technology in the preparation of vertical ground heat exchangers to create heat supply using heat pumps. The discharge energy in the operating range varied E=900÷2600 J. The most economical mode of operation of the electrohydraulic installation is carried out with the following parameters: discharge voltage 30÷51 kV, capacitor bank capacity 2 µF and interelectrode distance 8÷15 mm. It is determined that the optimal energy of destruction of natural materials depends on their thickness. Based on the research, the limits of the electrophysical parameters of the approach were established, at which the concentrated destruction of hard rocks – the main stones ‒ begins. The effective amount of energy for the destruction of stones with a thickness of 53 mm is 900 J. For stones with a thickness of 78 mm, there should be 2600 J. If to increase the energy of the discharges to 1837 J, the process of complete destruction of the stones is underway. Using an electro hydraulic drill, we have prepared vertical wells up to 25 m deep. In the future, we have installed special temperature sensors along the length of the pipes, inside the well. Using a software product (Temp Keeper), data from temperature sensors are received in real time. This program allows to visually monitor temperature changes occurring at a local point. Temperature and time dependences are also obtained at coolant velocities of 0.2÷0.4 m/s. A significant decrease in the temperature in the well and at the outlet was observed at a coolant velocity of 0.35 m/s for one hour. The study conducted on the basis of the data obtained enables to achieve higher optimal drilling performance compared to conventional installations

The drivers of environmental sustainability in BRICS economies: Do green finance and fintech matter?

The BRICS nations have made environmental sustainability a top priority in their policies due to concerns about the negative impact of fossil fuel reliance on the environment. Their dependence on fossil fuels, both for energy production and imports, has led to a steady increase in greenhouse gas emissions over time. However, the BRICS nations also have significant potential for renewable energy sources that can be harnessed without harming the environment. In this study, we examine how green finance (GFN) and financial technology (fintech) can contribute to the BRICS nations' goal of achieving carbon neutrality from 2000 to 2018. We also consider the influence of energy innovation, economic growth, and natural resources rent. The results support the Environmental Kuznets Curve hypothesis and indicate that GFN, fintech, and energy innovation promote environmental sustainability. On the other hand, natural resources rent, and economic growth have a negative impact on environmental quality. We also find that there is a bidirectional causality between CO2 emissions and GFN, fintech, and natural resources rent, while GDP and energy innovation exhibit a unidirectional causality with CO2 emissions. Based on these findings, we recommend that the BRICS countries prioritize the development of green financial products and expand the capacity of banks and financial institutions to offer green credit facilities. Furthermore, more resources should be dedicated to research on how to effectively use green finance solutions while managing associated risks.

Does transitioning away from GHG emitting companies hinder the capacity of banks to create shareholder value?

This article investigates the capacity of banks to create shareholder value amidst regulators and stakeholders’ growing demands for reductions in financing to greenhouse gas emitting companies. The purpose of the study is to evaluate the shareholder value creation capacity of banks amidst transition risks resulting from reductions in loans from high greenhouse gas emitters. The study compares reductions in balance sheet corporate loans to returns on equity from income statements. The comparison is done for periods during which interest rates move downwards as a way of stress testing banks’ capabilities to generate shareholder value. A risk-return analysis is conducted to determine the rate of change in risk compared to shareholder value. A hypothesis-testing focus is used to test a value-creation proposition concerning the rate of change in corporate loans and return on equity. The results of the study strongly suggest that banks can create shareholder value when faced with loan reductions to high greenhouse gas emitting companies, even within constrained repricing conditions such as negative interest rate movements. Of the cases analyzed 88% have a similar outcome of value creation, which is supported by a rejection of the null hypothesis at p-value ≤ 0.05, justifying statistical significance. Furthermore, 53% of the changes in return on equity is explained by the changes in loans to greenhouse gas emitting companies. The study concludes that banks could still create shareholder value if they reduce funding towards high greenhouse gas emitting companies, provided they devise prudent strategic portfolio tilts in assets.

Determining the Capacity and Installation Places of Compensating Devices in Electrical Networks

The problem of reactive power compensation in meshed electrical networks is investigated. A closed electrical network for a rated voltage of 220 kV, which contains three substations with loads equal to 80, 120 and 120 MW, and four lines, one of which connects it with the grid, is considered. Based on the specified load values, the capacitor bank capacities are determined. To determine more exactly the capacitor bank installation places, calculations of the entire network scheme were performed with all possible options for installing capacitor banks at the network substations. A few options for installing capacitor banks at different substations with which the power factor is improved significantly have been suggested, and the best one of them has been chosen.

Liquidity Capacity and Financial Performance of Commercial Banks in Kenya

Purpose: The objective of the study was to assess the impact of liquidity capacity on the financial performance of commercial banks in Kenya.
 Methodology: This study employed the explanatory research design. The 42 Kenyan commercial banks were the study's target population. The essential financial data for analysis was extracted and compiled using a data collection routine from the yearly reports. Panel data was mined from 42 commercial banks for six years between 2012 and 2018. The data were assessed by employing descriptive statistics as well as inferential statistics. Descriptive statistics employed involved the standard deviation, median, and average. Inferential statistics used involved panel regression. The data analysis was aided by STATA software.
 Findings: The findings from the regression analysis indicate that Net Stable Funding and Liquidity Coverage exert a significant positive impact on the financial performance of commercial banks in Kenya. Conversely, provisioning for Non-Performing Loans, Liquidity Gap, and Provisioning for Nonperforming Loans demonstrate a notable negative effect on the financial performance of commercial banks in the country. Moreover, the study reveals that bank competition plays a significant moderating role in the relationship between liquidity capacity and the financial performance of commercial banks in Kenya.
 Unique Contribution to Theory, Practice and Policy: The study was anchored on Anticipated Income Theory and Liquidity Preference Theory. The study recommended that the regulatory body for commercial banks, the CBK, facilitates open channels of communication between policy makers and senior management of commercial banks in Kenya. This discussion is critical to ensuring that the monetary policies developed are practical and beneficial to the expansion of the commercial banking industry. Lastly, the study suggests that all commercial banks in Kenya integrate considerations of liquidity costs, benefits, and risks into their performance measurement, pricing, and approval processes for significant business activities.

Analysis of Financial Performance of Nepalese Commercial Banks using CAMEL Approach

Bank and financial institutions require a method for assessing performance, considering some crucial financial statistics, and identifying strengths and weaknesses. The "CAMEL" model is a effective tool for assessing the performance of bank and financial institution. This model studied Capital adequacy, Asset quality, Management quality, Earnings capacity, and Liquidity condition of sample banks. The study has made a modest attempt to use the CAMEL technique to examine the performance of three commercial banks in Nepal from 2011/12 to 2020/21. Rastriya Banijya Bank, a wholly government-owned, Nepal SBI Bank Limited (NSBIL) joint venture, and Prime Commercial Bank Limited (PCBL), privately owned, were considered as a sample banks for the analysis. The result explained that PCBL and NSBIL could keep their risk-weighted assets at more excellent Tier I and II capital levels, demonstrating their financial soundness. This also revealed that NSBIL could support a higher percentage of well-performing loans. RBBL, NSBIL, and PCBL, all BFIs maintained average returns on shareholder equity and returns on assets. It also found PCBL was first in terms of the ratio of liquid assets to total deposits, followed by NSBIL banks and RBBL. In light of this, this research will be tremendously instructive to academics, researchers, and bank management. They can utilize it to create a financial plan for the effectiveness of the bank performance as a whole.

THE POSITION OF BRIDGE BANKS AS INSTRUMENTS FOR RESOLING BANK FAILURES IN INDONESIA

We analysed the capacity for banks to fail in Indonesia. A “failed bank” can be decoded as a bank facing financial difficulties and possibility of collapse. It is no longer feasible for the LPP (Banking Supervisory Agency) to address bank failures under its current authority. In Indonesia, bank failures are managed by the Deposit Insurance Corporation (IDIC), helped by rules from Bank Indonesia and the Financial Services Authority (OJK). Under Article 5 of Law no. 24 of 2004 regarding the Deposit Insurance Corporation, one of the jobs of IDIC is to develop, specify and enforce a procedure for the liquidation of failing banks that do not have a systemic effect and address failing banks that do have a systemic effect. The definition of systemic effect is when a bank’s failure will have an extraordinary impact on the availability of funds and the smoothness and sustainability of the economy. While a non-systemic effect is bank’s failure that does not meet the standards noted above. The implication of our research is to provide an understanding that assistance for failing banks in Indonesia is taken over by the IDIC which will form an entity called a bridge bank.

Striving for the United Nations (UN) sustainable development goals (SDGs) in BRICS economies: The role of green finance, fintech, and natural resource rent

AbstractIn terms of policy, the BRICS region has prioritized achieving environmental sustainability. Environmental problems are mostly caused by the area's continuous reliance on fossil fuels to meet its energy requirements. It is also challenging to significantly reduce the region's reliance on fossil fuels because historically, the region has been a big importer of fossil fuels. As a result, the greenhouse gas (GHG) emission rates of the BRICS countries have been rising over time. Furthermore, the area has enormous untapped reserves of renewable energy sources that can be exploited to produce electricity without negatively impacting the ecosystem. In light of this, this research analyses, while controlling for energy innovation, economic growth, and natural resource rent, the combined effects of green finance (GFN) and financial technology (fintech) in reaching the region's carbon neutrality goals from 1990 to 2020. The findings for the BRICS economies, which are consistent with the EKC theory, imply that environmental sustainability is promoted by GFN, fintech, and energy innovation (ENI). NRR (natural resource rent) and GDP (economic growth) compromise environmental quality, nevertheless. It has also been demonstrated that there is a two‐way causal relationship between CO2 emissions and GFN, fintech, and NRR. However, it has been demonstrated that GDP and ENI have a one‐way causal relationship with CO2 emissions. It is recommended that the BRICS nations speed up the development of green financial products and increase the capacity of banks and financial institutions to offer green credit facilities based on the empirical findings. The basic study of how green finance solutions might be used while lowering the related risks should receive more funding.

Efektivitas Penyampaian Informasi Petugas Avsec Mengatasi Konflik Komunikasi dengan Penumpang Mengenai Kapasitas Powerbank Bandar Udara Adi Soemarmo

The delivery of information carried out by aviation security officers to passengers in conveying information in the form of provisions in carrying electronic devices in the form of power banks is a communication that must be carried out firmly but still in a sympathetic manner. In a domestic flight, the carrying of power bank electronic devices is very strictly regulated in a regulation in the form of Circular Letter Number 15 of 2018 concerning the provisions of carrying portable battery chargers (power banks) and spare lithium batteries on aircraft. The purpose of this study is to determine and explain the effectiveness of information delivery by aviation security officers in overcoming communication conflicts with passengers regarding power bank capacity at Adi Soemarmo Boyolali International Airport. This research is a quantitative study using data collection methods using questionnaires with the population being passengers who carry power banks with capacities exceeding the applicable regulations. The results of this study are with the value of tcount (10,657) ˃ ttable (1,1991) then there is an influence on how to deliver information carried out by aviation security officers in overcoming communication conflicts with passenge rs, besides the influence of the delivery of information carried out by aviation security officers in overcoming communication conflicts with passengers is 59.3%, the remaining 40.7% is influenced by other factors outside this study.
 Key words: Submission of Information, Communication Conflict, Power bank

Can National Development Banks Help Alleviate the Shortage of Patient Investment Capital in Africa? Evidence from Bank-Level Panel Data

ABSTRACT National development banks remain an important part of modern financial systems in developed as well as developing countries. They play an important role in providing long-term financing and countercyclical financing during financial and economic crises. In this context, this article aims to provide empirical evidence of the role of national development banks in Africa in providing medium-term and long-term credit and their performance in managing resources, using bank-level data from selected countries and the BankFocus database (maintained by Fitch and Bureau Van Dijk). The empirical results show that while national development banks do not lend more relative to commercial banks, they outperform the latter in focusing on medium-term and long-term loans, which is consistent with their mandate. The results further confirm that national development banks incur more risk, resulting in relatively higher nonperforming loan ratios. As expected, national development banks are not more profitable than commercial banks in general, but they do perform better when they are located in countries with relatively more developed financial systems. The results are similar for public banks. The evidence suggests that strengthening the lending capacity of national development banks would significantly help alleviate the shortage of patient investment capital; i.e., medium-term and long-term credit in African economies. The article discusses policy implications and proposes some avenues for further research.

Penentuan Lokasi dan Kapasitas Kapasitor Bank pada Jaringan Distribusi Penyulang Americano untuk Meminimalkan Rugi-Rugi Daya dengan Metode Grey Wolf Optimizer (GWO)

The installation of capacitor banks is one way to reduce power losses and increase the voltage profile. Banks capacitor will supply capacitive reactive power, so that the impedance value can be reduced resistance. The increase in resistance leads to a decrease in the voltage profile and an increase in power reduction. Based on data from the simulation experiment with software ETAP 19.01, the highest decrease in voltage profile in Americano feeder at daylight load was 4.1 kV with total power losses of 449.5 kW and during night loads of 6 kV with total power losses of 917 kW. Based on this, the adding of capacitor banks is carried out using the Gray Wolf Optimizer (GWO) method to help the process of finding the location and capacity of capacitor banks. Decrease in active power loss after installing the capacitor bank during daytime loads was 148.5 kW, with an increase in the average voltage of 1,212 kV and during night loads was 374 kW, with an increase in the average voltage of 1.46 kV. Determining the location and capacity of the capacitor bank, the value of the power decrease and the maximum voltage profile increase are obtained.

Testing the Effectiveness of Unconventional Monetary Policy in Japan and the United States

The effective lower bound (ELB) on a short term interest rate may not constrain a central bank's capacity to achieve its objectives if unconventional monetary policy (UMP) is powerful enough. We formalize this 'irrelevance hypothesis' using a dynamic stochastic general equilibrium model with UMP and test it empirically for the United States and Japan using a structural vector autoregressive model that includes variables subject to occasionally binding constraints. The hypothesis is strongly rejected for both countries. However, a comparison of the impulse responses to a monetary policy shock across regimes shows that UMP has had strong delayed effects in each country.

Investment Bank, Financial Performance, Economic growth and Development: An Empirical Analysis of Investment Banking Activities and Financial Market in an emerging Economy: A case study of Nigeria

The investment bank's performance was researched and critically analysed, and how such performance might contribute to economic growth notably in Nigeria. This study is unique in the Nigerian financial market since it empirically studied connected characteristics that potentially impact investment bank performance in Nigeria. This study spanned the years 1996 through 2022. The period was marked by a credit boom, a financial recession, a rebound, and strong economic expansion. Because of the nature of the study topics, a quantitative approach was taken. The study discovered that bank-specific characteristics, industry-specific factors, macroeconomic drivers, and institutional factors are relevant in evaluating the performance of Nigerian investment banks. That is, a critical examination of the performance of Nigerian investment banks is centred on bank-specific characteristics. This suggests that the capacity of investment banks to fulfil their essential functions is determined by internal factors such as capital, credit risk, operating expenditures, and size. Additionally, the industry strength demonstrated that the financial market's depth had an influence on investment banks. The significance of competitiveness was underlined. Macroeconomic factors such as GDP growth, interest rates, inflation rates, and oil prices shown that a strong macroeconomic environment is required for vibrant investment banks. Lastly, institutional variables such as a developed insurance industry, political stability, the rule of law, and effective government policies can all have an impact on the success of Nigerian investment banks. The research recommended that, in order to significantly improve the performance of investment banks in Nigeria, the following strategies be pursued aggressively: cost reduction strategy, cultural transformation, adopting a customer-centric approach to business, technological development, financial depth development, and development of a sustainable investment bank framework. This study believes that if the recommendations are adopted, investment banks' profits would improve, allowing them to execute their core functions and contribute to the growth of the economy, particularly in a rising economy like Nigeria. &nbsp

The role of central banks in promoting Green finance

In an era of escalating environmental challenges, this research explores the complex role of central banks in the promotion of green finance. Employing a mixed-methods approach and focusing on case studies involving the European Central Bank, the People’s Bank of China, and the Federal Reserve, the study offers a nuanced understanding of the divergent strategies and challenges facing central banks. Despite political and technological hurdles, central banks have significant opportunities for financial innovation and global collaboration. Key policy implications include the need for holistic policy integration, enhanced transparency and disclosure protocols, and international cooperation. Recommendations for future research span longitudinal impact assessment, comparative financial instrument analysis, and exploring socio-economic variables. The study accentuates the transformative capacity of central banks in fostering a sustainable future, concluding that they have not only the capability but also the ethical obligation to lead this transition.

Regulations, Bank Stability Measures and Stock Market

Regulations directed at bank stability affect the entire financial system because of the strategic role banks play in the economy. The impact of regulations on bank performance have been examined. However, the use of bank regulatory stability indicators and aggregate financial regulatory instruments to account for stock market returns in Nigeria post-global financial crisis is limited, which is the gap this study seeks to fill. Data for this study was collected from investigated banks’ audited annual reports, the Central Bank of Nigeria Statistical Bulletin and Nigerian Stock Exchange official daily price list. Thirteen (13) banks listed in the Nigerian Exchange Limited for the 2010 to 2020 were investigated. The Difference Generalized Method of Moments was applied to the dynamic model to examine the effect of regulations, bank stability indicators on the returns of bank stocks. The Arrelano and Bond procedure was used to test for autocorrelation in the regression output, while the J.statistic enunciated by Hansen was employed to evaluate the existence or otherwise of over/under constraints in the instrumental variables incorporated in the estimation tool. E-view 9.0 econometric computer application was used for the analysis. This study found that bank liquidity ratio, an indicator of bank stability in this study positively and significance determines stock market returns. Also, capital adequency ratio, another bank stability indicator in this study positively and significantly drives stock returns. Similarly, monetary policy rate, an indicator used by the Central Bank of Nigeria to regulate aggregate liquidity positively and significantly influence bank stock returns. This study also revealed that the prescribed cash reserve ratio used by the Central Bank to regulate the capacity of banks to grant credits is negatively and significantly related to stock returns in Nigeria. This implies that a rise in cash reserve ratio limits the ability of banks to create credits, thereby reducing interest income from loans, thus reducing bank earnings. These findings imply that: (i) Investors should incorporate bank stability indicators and aggregate monetary policy regulatory instruments in their investment strategies if they hope to achieved maximum returns on investment. (ii) The regulatory authority can influence stock market performance through the concurrent utilization of bank stability indicators enunciated in Basel regulatory accord and monetary policy instruments (iii) The use of Cash reserve ratio as the regulatory instrument is potent in ensuring bank stability but it has adverse effect on bank stock returns because of its effect on interest income and earnings through its limitation on credit creations. Therefore, the central bank should reconsider the current cash reserve ratio and make it more friendly for banks' credit creation.

Processing of gelatine coated composite scaffolds based on magnesium and strontium doped hydroxyapatite and yttria-stabilized zirconium oxide

Limited bone bank capacity and risk of infection are some of the main drawbacks of autologous and allogenic grafts, giving rise to synthetic materials for bone tissue implants. The aim of this study was to process and evaluate the mechanical properties and bioactivity of magnesium and strontium doped hydroxyapatite (HAp) scaffolds and investigate the effect of adding zirconium oxide and gelatine coating the scaffolds. Doped nanosized hydroxyapatite powder was synthesized by the hydrothermal method and the scaffolds were made by the foam replica technique and sintered at different temperatures. Yttria-stabilized zirconium oxide (YSZ), synthesized by plasma technology, was used as reinforcement of calcium phosphate scaffolds. Element analysis, phase composition, morphology of the powders and microstructure of the scaffolds were investigated, as well as the compressive strength of the coated and uncoated scaffolds and bioactivity in simulated body fluid (SBF). A microporous structure was achieved with interconnected pores and bioactivity in SBF was confirmed in all cases. The best mechanical properties were given by the coated composite HAp/YSZ scaffolds, withstanding average stresses of over 1019 kPa. These results encourage the idea of use of these scaffolds in bone regenerative therapy and bone tissue engineering.

Analysis of the Implementation of Sharia Compliance on Buddhist Employees in Increasing Sharia Banking Capacity at Islamic Bank

Researchers conducted research on sharia compliance with Buddhist employees who work at the Islamic Bank of Thailand, because the Islamic Bank of Thailand is not limited to religion and race for employees. Islamic Bank of Thailand is currently a state company under the supervision of the Ministry of Finance and the Bank of Thailand. Therefore, in this study to find out whether Buddhist employees know and understand about sharia principles in Islamic banks.The research method used is a qualitative research method, with data collection techniques using data from the study of related documents and data from interviews. Research results that can be the result of interviews and related documents. The presentation of the research results is divided into 3 parts as follows: 1. The work factors of Buddhist employees who work in the Islamic bank of Thailand. 2. Islamic Law Regarding Banking Requirements. 3. Services in the Islamic Bank Of Thailand Service Model. From the results of the three research sections, when analyzed together with interviews and related documents, Buddhist employees who work at the Islamic Bank of Thailand adhere to Islamic principles strictly in accordance with the goals of the institution, provide services in accordance with Islamic principles and are impressed by very Islamic user. In the interview, both the Muslim and non-Muslim population commented that they were satisfied with the Islamic Bank of Thailand's convenient services and fulfilled their need to access the service

Liquidity management and profitability. A case of listed banks in Ghana

The article is intended to uncover the connection between liquidity and profitability in such a way that each bank must preserve this link while undertaking its day-to-day operational activities. The investigation employed listed banks on the Ghana Stock Exchange from the dated 2008 - 2018. Two estimators namely the Ordinary Least Square (OLS) and the Generalized Method of Moments (GMM) were utilized. To add to existing literature, the liquidity parameters employed in this study exhibited a favorable and significant link with the dependent indicators except for quick ratio which exhibited an immaterial affiliation. In addition, a robustness assessment was employed adopting the three-stage least-squares and the findings were parallel to that of the other estimators employed. The above insights are vital as regulators concoct changing standards offering banks with an optimal degree of liquidity. Although it is widely accepted that, prior to the latest financial crisis, banks undervalued liquidity, and the trade - offs between sensitivity to liquidity fluctuations and the risk of maintaining lower-yielding liquid assets must also be weighed, as the latter will influence the capacity of banks augment earnings and expand credit.

Heterogenous impact of monetary policy on the Philippine rural banking system

This paper shows the differential impact of monetary policy on the lending behavior of rural banks, with the bank lending channel being operational in small rural banks. While big rural banks are able to protect their lending portfolio from contractionary monetary policy by the size of their balance sheet, small rural banks with less diversified funding portfolio cannot. Moreover, highly capitalized rural banks are more inclined to protect their capital than expand their lending portfolio, following monetary tightening and higher capital requirement. The insignificance of gross domestic product (GDP) growth may reflect weakness in effective loan demand and lack of diversification that could have also impinged on the earning capacity of rural banks, as supported by initial estimates on the drivers of rural bank profitability. The finding on heterogeneous effects of monetary policy on rural banks has a secondary implication of lending credence to the principle of proportionality embodied in the BSP’s bank regulatory framework.