Bank Characteristics Research Articles

Moderating effects of CSR on the performance and characteristics of Tunisian banks listed on the BVMT

Moderating effects of CSR on the performance and characteristics of Tunisian banks listed on the BVMT

Talented managers, bank dividend policy and policy uncertainty

ABSTRACT The paper examines whether bank managers have significant idiosyncratic effects on dividend policy that are not related to bank characteristics. Using the quarterly data of US banks from 2001:Q1–2021:Q2, we document high ably-managed banks tend to pay higher dividends, and this effect is more pronounced amid high policy uncertainty. Our findings remain robust under a battery of robustness tests.

Bank board diversity on risk and value: evidence from Taiwan

ABSTRACT This study uses the banking industry in Taiwan to investigate how board diversity affects bank’s risk and value. The results show that board gender diversity reduces bank’s risks with lower non-performing loans and financial leverage, while board ethnicity diversity also decreases non-performing loans but not leverage. Both gender diversity and ethnicity diversity improve bank value measured by Tobin’s Q. Our results are robust across different model specifications, after controlling for time-invariant unobservable bank characteristics and addressing the concerns of endogeneity and causality. We show that the gender diversity in government-held banks is more effective in managing risk and enhancing value than that of the private banks. Both gender and ethnicity diversity appear to be the Holy Grail in the Taiwanese banks as they can enhance bank value and lower bank risk. Our results provide important policy implications for the banks and regulators in Taiwan and other markets.

Tail risk connectedness among GCC banks episodes from the Global Financial Crisis to COVID-19 pandemic

This paper aims to analyze the impact of the COVID-19 pandemic on market-based systemic risk and the connectedness of commercial banks in Gulf Cooperation Council countries. The results suggest that systemic risk has increased significantly after the pandemic by employing two very well-known systemic risk measures, the Delta conditional value-at-risk (ΔCoVaR) and the marginal expected shortfall (MES), but heterogeneously across GCC nations. Using the Granger-Causality network method, the results reveal a remarkable rise in the percentage and number of significant connectedness between banks for Kuwait and KSA during the pandemic. Oman and Qatar experienced an unnoticeable increase in bank return connectedness. Furthermore, the study identifies the bank characteristics that provide shelter from the systemic shocks of the pandemic. The study findings indicate that income diversification is the most crucial variable for enhancing bank stability amid the pandemic. Our findings provide policy-related implications for understanding and mitigating risk shock transmission and the containment of systemic financial risk, in addition to multiple future lines of research.

Assessing the impact of macroeconomic uncertainties on bank stability: Insights from ASEAN-8 countries

This research examines the effect of economic uncertainties on bank stability in ASEAN-8 countries. We use estimations with fixed effects for a panel dataset of bank stability, bank characteristics, banking system characteristics, and macroeconomic uncertainties from 2010 to 2020. Geopolitical risk (GPR), economic policy uncertainty (EPU), climate policy uncertainty (CPU), world pandemic uncertainty (WPU), global supply chain pressure (GSCP), and monetary policy uncertainty (MPU) are used as proxies for economic uncertainty (MU) in this research. We find that although an increase in macroeconomic uncertainties weakens bank stability, GPR is positively related to bank stability. An alternative measurement of bank stability, endogenous tests, and quantile regression corroborate our primary findings. Further analyses focus on the heterogeneous influence of macroeconomic uncertainties on bank stability with diversified bank specifics and the country's financial openness. Our paper supplies deep insights for bank managers and macro policymakers in the ASEAN region relevant to the effect of macroeconomic uncertainties on bank stability. Most crucially, experimental results from this research enrich a wealth of knowledge about the regional banking industry's stability; they are the basis for the establishment of bank strategies and macroprudential policies geared to managing the increased macro-unpredictability.

Bank failures, capital buffers, and exposure to the housing market bubble

AbstractWe develop housing overvaluation measures that are separate from local economic conditions and show that banks with greater exposure to such overvalued markets have higher mortgage delinquency and charge‐off rates and significantly higher probabilities of failure during the 2007–2009 financial crisis even after controlling for bank characteristics. While high house prices relative to fundamentals present a greater likelihood of house price correction, we find no evidence that banks managed this risk by building capital. We also show that our overvaluation measures are important in explaining individual mortgage loan defaults and could be used to improve bank risk management.

Do Bank Characteristics Really Matter for its Environmental Reporting?

Do Bank Characteristics Really Matter for its Environmental Reporting?

Long‐term effects of meadow management on seed bank diversity and composition

AbstractAimsOligotrophic grasslands are habitats that host among the most diverse plant communities in Europe. Altering management regimes by either intensifying or ceasing management is known to decrease plant diversity. Yet, despite its importance for the recovery of plant communities after disturbances, little is known about whether seed banks are also affected by changes in management. Here, we investigate the effect of management practices on a meadow seed bank using a long‐term manipulative experiment. We focus on the response of the seed bank to the treatments, and the relationship between the seed bank and the vegetation response.MethodsThe study was conducted in a species‐rich wet meadow. The experiment consists of a factorial combination of fertilization, mowing, and removal of the dominant species. After 20 years of management, the seed bank was sampled seasonally at two soil layer depths. Standing vegetation was recorded in June at the peak of vegetation.ResultsAll seed bank characteristics varied between soil layers. Mowing decreased seed density and diversity, while fertilization significantly affected the species composition. Dominant removal had no effect on the seed bank. While seed bank diversity was not correlated to vegetation diversity, individual species' responses to mowing and fertilization were positively correlated in the seed bank and the vegetation.ConclusionsOur results show that long‐term management influences the seed bank down to 10 cm of soil depth. Whereas mowing apparently reduced seed density and diversity, the effects of fertilization on these characteristics were harder to interpret. After 20 years, most species had concordant responses to both mowing and fertilization, indicating a low legacy of previous management regimes on the seed bank. Our study reveals that the intensification of grassland management has a profound effect on plant diversity by directly affecting plant communities and their seed‐bank‐driven recovery potential.

Heterogeneity effect of prudential regulation on the stability of banks: evidence from WAEMU banks using quantile regression with fixed effects

PurposeThis paper aims to analyze the heterogeneous effect of prudential regulation on the stability of banks in the West African Economic and Monetary Union (WAEMU).Design/methodology/approachThe author uses in this study individual bank data from balance sheets, income statements of banks in the WAEMU space and annual reports of the banking commission formed into a three-year panel from the period 2017 to 2019. First, this study uses hierarchical clustering based on specific banking characteristics to determine whether the WAEMU region’s banking markets are heterogeneous or not. Second, this study uses quantile regression approach with fixed effects to explore how that prudential regulation affects the conditional distribution of WAEMU bank stability.FindingsThe analysis reveals heterogeneity resulting in two distinct groups. Using the quantile regression approach, this study demonstrates that prudential regulation has a significantly more substantial and positive effect on the upper quantiles than on the lower quantiles of the conditional distribution of WAEMU bank stability. Furthermore, the effect of banking regulation also varies among pan-African cross-border banks, national banks and foreign banks. Among these types of banks, pan-African cross-border banks remain the most stable by adopting prudential regulation. The results remain robust and vary across different WAEMU countries.Originality/valueThe contribution of this study to the literature is multifaceted. First, this study uses individual bank-level constituted in panel data from the WAEMU region to assess the effect of prudential regulation on the stability of the WAEMU’s banking sector. This approach allows for a more granular analysis as this study considers individual regional banks’ specific characteristics and behaviors. Second, this study considers the heterogeneous effect of regulation on the stability of banks within the WAEMU space. This means that this study acknowledges that not all banks are affected similarly by prudential regulations, and this research aims to identify and quantify these differences.

Systemic Importance and Risk Characteristics of Banks Based on a Multi-Layer Financial Network Analysis.

Domestic and international risk shocks have greatly increased the demand for systemic risk management in China. This paper estimates China's multi-layer financial network based on multiple financial relationships among banks, assets, and firms, using China's banking system data in 2021. An improved PageRank algorithm is proposed to identify systemically important banks and other economic sectors, and a stress test is conducted. This study finds that China's multi-layer financial network is sparse, and the distribution of transactions across financial markets is uneven. Regulatory authorities should support economic recovery and adjust the money supply, while banks should differentiate competition and manage risks better. Based on the PageRank index, this paper assesses the systemic importance of large commercial banks from the perspective of network structure, emphasizing the role of banks' transaction behavior and market participation. Different industries and asset classes are also assessed, suggesting that increased attention should be paid to industry risks and regulatory oversight of bank investments. Finally, stress tests confirm that the improved PageRank algorithm is applicable within the multi-layer financial network, reinforcing the need for prudential supervision of the banking system and revealing that the degree of transaction concentration will affect the systemic importance of financial institutions.

Faktor yang mempengaruhi porsi pembiayaan bagi hasil pada Bank Pembiayaan Rakyat Syariah

This study examines conceptual and empirical models of Manager Skills, Sharia Compliance, Sharia Bank Characteristics, Manager Perception of Sharia Bank Internal SDI, Manager Perception of Customer Characteristics, Manager Perception of Regulatory Existence, Manager Perception of Government Support for Profit Sharing Financing Portion at Sharia People's Financing Bank. The selection of the research site was carried out by proportional simple random sampling technique. The sampling technique used in his research was purposive sampling. In this study there were 36 BPRS in DIY and Central Java, then five people were taken as respondents for each BPRS consisting of the Board of Directors, Sharia Supervisory Board, Marketing Manager, Operations Manager (Financing Manager) and Customer Service. So the number is 180 (One Hundred and Eighty) respondents. The object of assessment is the Operations Manager/Financing Manager, considering that this research is related to the portion of profit sharing financing. The results showed that 1) The conceptual skills of managers have a positive effect on the portion of profit sharing financing in Sharia BPR 2) The technical skills of managers have a positive effect on the portion of profit sharing financing in Sharia BPR 3) The social skills of managers have a positive effect on the portion of profit sharing financing in Sharia BPR 4) Manager's perception of the internal SDI of Islamic banks has a positive effect on the portion of profit sharing financing in Sharia BPR 5) Manager's perception about the existence of regulations has a positive effect on the portion of profit sharing financing in Sharia BPR 6) Manager's perception of government support has a positive effect on the portion of profit sharing financing in Sharia BPR 7) There is no influence of the characteristics of Islamic banks on the portion of profit sharing financing in Sharia BPR 8) There is no influence of sharia compliance on the portion of profit sharing financing in Sharia BPR 9) No influence of managers' perception of characteristics customers against the portion of profit sharing financing at BPR Syariah.

Design and Application of a Credit Bank Based on Blockchain Technology

Credit banks are an important way to build a lifelong learning system and a learning society. At present, various types of credit banks in China generally have limitations such as low efficiency in learning achievement certification and conversion, difficulty in ensuring the quality of learning achievement certification, and vague identification of credit banks. Blockchain technology has the characteristics of openness, consensus, transparent transactions, anonymity, tamper resistance, and traceability, which can effectively solve the centralized governance problems faced by the current construction of credit banks. This article elaborates on the current development status and characteristics of credit banks at home and abroad, analyzes the feasibility of combining credit banks with blockchain, and designs a blockchain based credit bank system architecture and processing flow to address the challenges of inconsistent credit conversion standards, low conversion efficiency, and data security risks in traditional credit banks. It proposes using block structure design to achieve secure and tamper proof credit data, proposes a smart contract based credit recognition and conversion method to achieve decentralized governance of credit banks, and establishes a blockchain based credit bank certification, conversion, and other application design models, which can provide technical support for the large-scale application of credit banks in the future.

Market Concentration, Bank Characteristics, Macroeconomic Conditions, and Indonesian Islamic Bank Financing

As the latest player in the banking market in Indonesia, Islamic banks are not as experienced as their counterpart conventional banks. In addition, the types of Islamic bank financing (loans) are different from conventional bank loans. Our work investigates the determinants of Islamic bank financing in Indonesia. Our concern variables are market concentration, bank fundamentals, and macroeconomic conditions, including Covid-19. This study examines all Islamic banks in Indonesia from 2015 to 2020 using quarterly data. Our data set is 724 observations with unbalanced panel data. We employ the dynamic panel data using the two-step system GMM that is more robust than two-step difference GMM. Market concentration encourages financing. Profitability, bank size, and financing loss provision also enhance financing. However, a high degree of risk aversion and inefficiency reduces financing. Furthermore, Islamic bank financing also depends on macroeconomic conditions. Economic upturns strengthen financing. Strong bank fundamentals, particularly bank size, are the key to success for Islamic bank financing. The results draw an important practical implication. Large Islamic bank is a necessary condition to compete with a conventional bank. Accordingly, the spin off policy of Islamic bank windows to full-fledged Islamic bank should be implemented immediately.

Study on Proppant Transport and Placement in Shale Gas Main Fractures

In this paper, based on the background of a deep shale reservoir, a solid–liquid two-phase flow model suitable for proppant and fracturing fluid flow was established based on the Euler method, and a large-scale fracture model was established. Based on field parameters, a proppant transport experiment was conducted. Then, on the basis of the experimental fracture model, proppant transport simulation under different influencing factors was carried out. The results show that the laboratory experiment was in good agreement with the simulated results. The process of proppant accumulation in fractures can be divided into three stages according to the characteristics of sand banks. The displacement mainly affects the sedimentation distance of the proppant in the first stage, and the viscosity of the fracturing fluid represents the strength of the fluid sand carrying performance. Compared with 40/70 mesh proppant, 70/140 mesh proppant is more easily fluidizable, the fracture width has less influence on proppant migration and placement, and the perforation location only affects the accumulation pattern at the fracture entrance, but has less influence on proppant placement in the remote well zone.

Regional cooperative banks, ecosystems and small and medium-sized enterprise financing: the importance of cognitive, social and geographic proximities

PurposeThis study analyzes the role of regional cooperative banks in identifying and financing small and medium-sized enterprises (SMEs) from a proximity perspective. Access to finance is a major challenge for SMEs. Regional cooperative banks can remove this barrier based on cooperative bank's characteristics and geographic proximity to SMEs. Understanding the interplay between these financial actors and firms can contribute to a better support of SMEs development.Design/methodology/approachThe results are based on a case study of eight SMEs located in southwestern France. Interviews were conducted with two regional cooperative funds and eight SMEs. The interview guide included questions related to the company, the projects financed and how financing was accessed.FindingsResults reveal that a combination of three forms of proximity allows regional cooperative banks and SMEs to establish effective financing operations. They show that regional cooperative banks are key players in the existing financing mechanisms for SMEs. Such financing is often used to gain access to larger players at a later stage. The findings suggest the need for public policies that promote the integration of financing actors in regional ecosystems to advance SMEs' development.Originality/valueThis article examines how SMEs access financing, with a focus on regional cooperative banks, which have received little attention in the literature. Moreover, the relationships between these actors are studied through the lens of proximity. Regional cooperative banks are able to finance projects that may have been overlooked by traditional banks due to trust-building local dynamics.

Responses of soil seed bank and its above-ground vegetation to various reclamation patterns

Coastal land reclamation has become a primary strategy for alleviating conflicts between human development and land resource utilization. However, anthropogenic activities associated with land reclamation inevitably result in significant changes to coastal wetland ecosystems. Previous studies have mainly focused on the ecological consequences of land reclamation on above-ground vegetation, while overlooking the distinctions between different reclamation patterns and the critical role of soil seed bank in maintaining ecosystem stability. In this study, the responses of soil seed bank and vegetation to various reclamation patterns, as well as the factors influencing changes in seed bank characteristics, were analyzed in a natural coastal wetland (NCW), a reclaimed wetland with sea embankments constructed on native wetland (SEW), and another reclaimed wetland formed through land reclamation from the sea (LRW). These findings suggest that seed banks and their vegetation adopt different adaptation strategies under various reclamation patterns. In the NCW, the proportion of non-halophytes (1.39%), diversity, and density of the seed bank were at their lowest levels, whereas the species compositions derived from the seed bank and vegetation were very similar (similarity coefficient = 0.67). Conversely, the seed bank in the SEW demonstrated the highest species diversity, which differed significantly from the species composition of its above-ground vegetation (similarity coefficient = 0.21). However, the highest proportion of non-halophytes (36.60%), vegetation diversity, and seed bank density occurred in LRW. Furthermore, differences in seed bank characteristics under different reclamation patterns may be related to changes in soil salinity and plant reproductive strategies after reclamation. Adjusting reclamation patterns and restoring soil properties could potentially optimize the types of local plant species and their distribution in reclaimed areas.

Financial characteristics of mobile banking and payment users in the United States

This study aims to examine the personal finance characteristics of mobile banking and mobile payment users in the United States. To achieve this goal, we used the 2018 National Financial Capability Study, which surveyed over 27,000 American adults regarding their personal financial standing and behaviors. By using ordinary least squares models, our results indicated that the use of mobile banking and mobile payment technology was associated with lower age, Non-White Ethnicity, higher income, higher debt load, debt types (auto, student, credit card, and predatory), and spending more than one’s income. These results reveal that the higher one’s income, financial liabilities, and spending are, the more they may value the convenience of mobile banking and payments.

Determinants of Net Transactions in TARGET2 of European Banks Based on Micro-data

AbstractThis paper examines German and foreign bank factors that can explain net flows of cross-border central bank liquidity between Germany and the rest of the euro area. Using data from the German component of Eurosystem’s real-time gross settlement system TARGET2 and BankFocus for the period between 2009 and 2021, we provide empirical evidence that only few balance sheet items and profit and loss accounts affect net flows with Germany. We control for bilateral bank-specific relationships and time-varying macroeconomic country effects in our regressions. In general, German bank factors seem to be more important than characteristics of foreign banks. A German bank that exhibits relatively high claims against central banks seems to attract less additional central bank liquidity from abroad than a German bank with fewer existing central bank claims. Net claims against central banks, which also control for liabilities, have no effect on net transactions in TARGET2. However, higher overall liquidity of a German credit institution corresponds to additional net inflows. Foreign bank factors only matter for central bank payments and intragroup payments. We also document heterogeneities across different types of transactions which influence the German TARGET2 balance. While customer payments, interbank payments and central bank payments have increased net flows to Germany in sum, intragroup payments and ancillary systems’ transactions have led to net outflows.

Fragility Assessment of Tunisian Banks Amid Crisis: Index-Based Detection and Evaluation Strategies

The banking sector plays a pivotal role in the economic stability of any nation, and assessing the fragility of banks becomes paramount during times of crisis. This study focuses on the Tunisian banking landscape, employing innovative index-based methods to detect and evaluate fragility in the face of economic upheavals. The research combines a comprehensive analysis of financial indicators, market dynamics, and macroeconomic factors to construct a robust fragility index tailored to the unique characteristics of Tunisian banks. The methodology integrates both quantitative and qualitative metrics to gauge the vulnerability of the banking sector, providing a nuanced understanding of potential stress points. By identifying early warning signals through the proposed index, policymakers and financial institutions can proactively address emerging challenges, contributing to the resilience and stability of the banking sector in Tunisia. The study not only enhances the academic discourse on financial fragility assessment but also offers practical insights for regulatory bodies and industry stakeholders to strengthen the foundations of the Tunisian banking system in times of crisis.

Pengaruh Religiusitas dan Persepsi Masyarakat terhadap Minat Menabung di Bank Syariah

This research was conducted to determine the influence of religiosity and public perception on interest in saving at sharia banks with a sample of respondents from the Rukun Warga 06 West Cilandak community. This study uses a quantitative approach. The results of the analysis show that the level of religiosity and public perception have a positive and significant influence on interest in saving. So these two variables are believed to increase interest in saving at sharia banks, therefore to increase the number of customers of a sharia bank it is necessary to increase outreach programs to the public so that their understanding and knowledge increases regarding the products and characteristics of sharia banks which are different from conventional banks.