Community Banks Research Articles

Employee Involvement Mediates the Relationship between Strategy Formulation and Implementation: the case of Rural and Community Banks in Ghana

Purpose: This study investigates the mediating role of employees in strategy formulation and implementation in rural banks in Ghana.
 Methodology: The researcher surveyed 360 respondents from rural and community banks in Ghana. Two hundred (270) respondents responded out of the 360 expected responses, representing a 75% response rate. The researcher used Amos graphics to examine employee involvement in the mediation role in the relationship between strategy formulation and implementation.
 Findings: The relationship between strategy formulation and implementation was accepted (β = .0505, p = 0.000 < 0.05), the effectiveness of strategy formulation predicted the effectiveness of strategy implementation, and the employee mediation role between strategy formulation and implementation was accepted (β 0.140, p = 0.046 < 0.05). Employee mediates strategy formulation and implementation and predicts the effectiveness of strategy implementation.
 Unique Contribution to Theory, Practice and Policy: The study investigated the relationship between strategy formulation and implementation in the rural and community banks in Ghana and the role of employees in the relationship between strategy formulation and implementation, a theoretical contribution made to the field in the strategic management process. There is limited current literature that has examined the mediating role of employees between strategy formulation and implementation in the rural and community banks in Ghana or used the variables in this study to make predictions and conclusions on employee role in the relationship between strategy formulation and implementation. The study recommends that strategy formulation should not be an exclusivity right for top managers and must be an all-inclusive process where all stakeholders within the RCBs are involved in the strategy formulation process, selecting the stakeholders from middle management, lower management, and employees. The selection must be limited to functional heads, unit heads, and employees with strategic roles and responsibilities to provoke positive strategic outcomes, leadership to encourage creativity, knowledge sharing among staff for new thinking perspectives and methodologies in the banks’ product and service offerings.

Struggle to survive: case of flood risk on US community banks

PurposeThe survivorship of firms under extreme weather poses an essential question about the local economy's health. Over 90% of agricultural banks are categorized as community banks, which are important financial institutions promoting local growth. While previous studies suggest that climate change and weather shocks adversely impact community banks' resiliency, studies on whether these institutions engage in risk-reducing management strategies have been limited. In this study, the authors examine strategic choices of local community banks when facing flood events which include (1) safety net increase, (2) portfolio diversification, and (3) branch opening. These strategic choices are the coping mechanisms banks can take to survive while affecting the local competitive lending market.Design/methodology/approachThe authors use panel-fixed effect regressions based on the storm data from National Oceanic and Atmospheric Administration (NOAA)'s National Weather Service (NWS) and the call reports from the Federal Deposit Insurance Corporation (FDIC). The authors focus on community banks' account variable characteristics and the number of offices to examine whether community banks take an active role in managing flood risk.FindingsResults suggest that community banks do employ the selected strategic choices to a certain degree, as it is found that there is an increase in the core capital that absorbs shocks and portfolio diversification. However, the magnitudes of these activities are rather small and not large enough to fully mitigate the climate risk. Also, the authors do not find any evidence of branch expansion associated with local floods.Originality/valueThis study contributes to the literature by examining different strategic choices of community banks in the face of natural uncertainty. Even though concerns of climate risk have been raised in the regulatory setting, a lack of guidance or assessment tools could contribute to the passive action of these community banks, even though climate risks can have a significant economic impact. Thus, the evidence documented from this study calls for further guidelines and the importance of highlighting climate risks on community banks so that they can actively engage in risk-reducing strategies.

Exploring the interplay of credit and liquidity risks: Impacts on banks’ profitability

This research delves into the intricate relationship between credit and liquidity risks and their far-reaching consequences on the overall profitability of banks. Leveraging a comprehensive dataset comprising 132 observations across twelve distinct financial institutions, spanning the period from 2009 to 2019, the analysis employs a sophisticated empirical framework grounded in simultaneous equations. By incorporating three meticulously chosen control variables, this approach adeptly disentangles the distinct effects of credit and liquidity risks on banks’ financial performance. The methodological trajectory unfolds in a sequential manner, commencing with isolated scrutiny of the individual impacts of credit and liquidity risks on banks’ profitability. This evaluation is gauged through robust metrics such as Returns on Assets and Economics. Subsequently, a nuanced exploration ensues, probing the intricate interplay between these two risks and their combined effect on banks’ profitability. Eminent findings emerge from this investigation, underscoring the adverse consequences of escalated credit risk on bank liquidity, accompanied by a simultaneous elevation in overall risk exposure. This disturbing trend notably casts a substantial shadow over banks’ profitability. Conclusively, this study consistently establishes the detrimental impact of the confluence of credit and liquidity risks on the financial well-being of banks. Evidently, this interaction exerts a negative influence on banks’ profitability, a perspective persistently reinforced by the authors’ analyses. The insights garnered from this study hold notable implications for the banking community and financial practitioners. By enhancing comprehension of the distinct attributes of credit and liquidity risks, this research contributes to a refined understanding of risk management dynamics. Moreover, it accentuates the urgency of fortifying the holistic management of liquidity-credit risks, a call to action that resonates deeply with both bankers and financiers seeking to navigate the intricate terrain of contemporary financial landscapes.

The money tree: Exploring central bank digital currency blockchain imaginaries

Central banks worldwide are developing, piloting and launching new central bank digital currencies (CBDCs). As the hub for the central banking community, the Bank for International Settlements (BIS) promotes a curiously botanical CBDC imaginary. From ‘money flowers’ to ‘tree trunks’ and a ‘strong canopy’, This helps to naturalize CBDC without clarifying its sociopolitical implications or envisioned monetary future, such as geopolitical tensions and financial fragmentation, new modes of financial interaction or the strengthened role of central banks. While omitting the paradoxes and ambivalences of CBDC, the imaginary of the BIS structures the enfolding discourses and allows the bank to function as a think tank for financial policy‐making.

On Examining Residential Segregation in Rural Gadag, Karnataka, India: The Case of the Banjara Tandas.

Residential segregation of settlements on caste lines is common across Indian villages. Banjara settlements or tandas are an extreme form of residential segregation, rooted in colonial history and India's complex caste system, and an outcome of structural discrimination. This analysis examines the structural discrimination of tandas in the distribution of various infrastructure and compares it with the villages in proximity to it. A cross-sectional comparative study of infrastructure was conducted in Banjara tandas and villages in Gadag district, Karnataka, India. Composite scores were computed for various infrastructure and discriminant analysis done to classify tandas and villages. The villages have better physical infrastructure such as paved roads, multiple water supply sources, and better drains and amenities such as the community water filter, ration shop, veterinary center, milk society, banks, post office, and health facilities compared to tandas. Discriminant analysis indicated that social infrastructural indicators of health and education (Discriminant function coefficient -0.8689), followed by transportation (Discriminant function coefficient -0.3576) and water supply (Discriminant function coefficient -0.2939), are the most significant discriminating factors between tanda and villages. This disadvantage indicates structural discrimination that is a continuation of the stigma and labeling perpetrated upon them historically and the complex caste system in Indian societies.

Shifting incentives: the impact of the Tax Cuts and Jobs Act on S bank conversions

PurposeThis paper investigates the significant increase in S corporation banks converting to C corporations following the 2017 Tax Cuts and Jobs Act (TCJA) and the shift in motivations behind these conversions.Design/methodology/approachThe paper uses bank-level panel data from Federal Deposit Insurance Corporation (FDIC) Call Reports to analyze the determinants of S bank conversions after the TCJA, comparing post-TCJA conversion trends with pre-TCJA trends utilizing an ordinary least squares (OLS) and logistics model.FindingsThe study finds that post-TCJA conversions are primarily driven by financially stable banks seeking improved tax conditions and relaxed shareholder restrictions as C corporations. This contrasts with pre-TCJA conversions, which were predominantly driven by financially distressed S corporation banks seeking new equity capital to maintain solvency.Research limitations/implicationsThe findings necessitate a comprehensive reconsideration of the Subchapter S status' sustained relevance for smaller institutions, especially in light of the comparative benefits now offered by the C corporation status post-TCJA. The results underscore the importance of ongoing academic investigation to deepen the understanding of the evolving fiscal landscape's effects on community banks, thereby contributing to the knowledge of the resilience and health of the US economy.Practical implicationsThis research nudges policymakers and regulators to contemplate the ongoing relevance and advantages of the S corporation status. Given the substantial benefits conferred by the C corporation status in the post-TCJA environment, this study suggests that retaining the S corporation status may not offer the same appeal for smaller community banks as it once did.Originality/valueThis paper contributes to the broader understanding of the impact of tax policy on businesses' organizational choices, particularly in the banking industry and emphasizes the need for a comprehensive review of the S corporation status to assess its ongoing applicability in fostering small and community-focused financial institutions in light of the evolved corporate tax landscape.

Herbivory and nutrients shape grassland soil seed banks

Anthropogenic nutrient enrichment and shifts in herbivory can lead to dramatic changes in the composition and diversity of aboveground plant communities. In turn, this can alter seed banks in the soil, which are cryptic reservoirs of plant diversity. Here, we use data from seven Nutrient Network grassland sites on four continents, encompassing a range of climatic and environmental conditions, to test the joint effects of fertilization and aboveground mammalian herbivory on seed banks and on the similarity between aboveground plant communities and seed banks. We find that fertilization decreases plant species richness and diversity in seed banks, and homogenizes composition between aboveground and seed bank communities. Fertilization increases seed bank abundance especially in the presence of herbivores, while this effect is smaller in the absence of herbivores. Our findings highlight that nutrient enrichment can weaken a diversity maintaining mechanism in grasslands, and that herbivory needs to be considered when assessing nutrient enrichment effects on seed bank abundance.

Do Community Banks Stabilize Housing Prices?

This paper examines the influence that community bank residential mortgage lending has on regional housing prices and ultimately the housing price bubble that culminated with the Great Recession of 2007–09. Previous research suggests that community bank lending is influenced by financial intermediation frictions, such as difficulty attracting uninsured deposits and limited access to the bond market. Such frictions cause bank liquidity to play an important role in the ability of community banks to navigate swings in the local economy as well as real estate prices. We take these frictions as the starting point in our analysis and contribute to literature by focusing on the impact that community banks exert on housing prices. Specifically, we find that while community bank residential mortgage holdings are marginally related to housing price cycles, their mortgage lending does not contribute in an economically meaningful way to housing price bubbles. Even though bank liquidity, defined as the ratio of securities-to-assets, plays a role in the degree of community bank residential mortgage lending, it is not sufficiently strong enough to influence housing prices.

Determinants of Financial Depth: A Case Study of Mortgage and Microfinance Banks in Nigeria

Financial depth is an important components of financial development for which determinants have been examined by a number of extant studies, using different kinds of financial depth indicators. This study aims at analyzing the factors that determine financial depth using the assets of mortgage and microfinance banks as indicators of financial depth. The study employs data that span from 1992 to 2021, using Autoregressive Distributed Lag (ARDL) model. It is found in the study that the policy of conversion of community banks to microfinance banks and the introduction of mortgage warehouse fund have positive effects on microfinance and mortgage banks’ assets. Also, it is found that literacy rate has negative effect only on the microfinance bank assets. Thus, this study recommends further deepening of the various segments of financial system, policy makers should strengthen the existing policies and create the new similar policies and reforms with respect to each indicator of financial depth.

Coping with informal fish vending constraints and resilience implications among urban-based women fish vendors in Dar es Salaam

The aim of this study is to examine threats related to informal fish vending business among urban-based women and to propose strategies for overcoming the threats. Specifically, the study ascertains the threats associated with the fishing business and strategies for coping and the capacity to cope. Based on the multi-layered social resilience framework, this study used a qualitative design and a sample size of 30 participants obtained both randomly and purposively. The findings revealed that threats experienced by the vendors include stigma, fish scarcity, higher fish prices, inadequate business capital, various forms of gender-related violence such as sexual harassment, lack of legal status, and various forms of crime including robbery, theft, and pickpocketing. Findings further indicated that vendors managed to develop both reactive and proactive strategies for coping with the threats. Reactive strategies include joining small self-helping groups popularly known as Village Community Banking (VICOBA) and soliciting family and relative support against insecurity threats. Proactive strategies include securing business financing from credible institutions, business diversification and adopting new kinds of business, business registration and licensing, searching for and participating in education and capacity-building programs, as well as business advocacy. It is recommended that government support, provision of education, and access to credit, should be considered in supporting women fish vendors to cope with the threats in their fishing business activities.

City Public Banks in Russia in the 19th Century

The article analyzes the experience of creating and establishing the Orenburg city public bank and the possibility of using this historical heritage today. The search for new forms and approaches to improve the activities of modern regional banks in the conditions of sanctions, strengthening its focus not only on the development of the regional economy, but also on the expansion of charitable activities became the purpose of the present study. This is due to the global trend towards the revival of interest in the forms of local banks subordinated to public needs, the discussion in the Russian banking community of the economic situation, as well as the transition of regional banks to an inertial model of survival, including due to insufficient support at the federal and local levels. The study was carried out using the methods of historical and logical analysis. On the basis of previously unstudied archival documents stored in the State Budgetary Institution “United State Archive of the Orenburg Region”, the historical background and prerequisites as well as the stages of preparatory work for the creation and the establishment of the Orenburg City Public Bank in the 19th century are shown. It has been proven that the success of this kind of financial and credit institutions depends not only on the state of the region’s economy, but also on the joint efforts of their leadership and management, the city community, and the city residents who have confidence in this form of bank and the type of control over its activities. The studied experience of the preparatory work on the creation and establishment of city banks, their joint activities with the city community, forms of profit distribution characteristic of those years, surviving projects, documents, forms of control can be of not only of historical interest, but also serve as directions for innovations of modern regional banks and complementing their current practices and interactions with the local legislative authorities.

Revitalizing the Livelihoods of Kahayan River Communities: Exploring the Determinants of Income Increase

Identifying strategies for increasing the income of densely populated communities, particularly concerning the COVID-19 pandemic, remains a challenge. Specifically, this study aims to investigate the influence of entrepreneurial interest, digital marketing, and financial capital on income generation in Pahandut Village. The study adopts a quantitative research methodology based on a sociological-economic approach. Data analysis involves the use of multiple linear regression analysis. A random sampling technique was utilized to select 152 respondents from the entire population of Pahandut village. The findings reveal that entrepreneurial interest, digital marketing, and financial capital have a positive and significant influence on income generation during the Covid-19 pandemic. Therefore, it can be concluded that greater entrepreneurial interest, utilization of digital marketing, and financial capital will increase income for Kahayan River bank community during the Covid-19 pandemic era. Therefore, to adapt to the evolving business landscape, it is crucial to provide support for business literacy aimed at both starting and expanding a business.

Fish biodiversity and their conservation measures in the Mathabhanga river, Chuadanga, Bangladesh

The study was concerned to determine the present status of the fish biodiversity in the Mathabhanga river, Chuadanga and its conversation measures based on the questionnaire interview with 40 fishers, focus group discussion with river bank community members and cross check interview with key informants. A field study was conducted for a period of four months from December, 2021 to March, 2022 to assess the fish biodiversity in the Mathabhanga river, investigate the existing fishing practices and also to identify proper management strategies for the conservation of fish biodiversity in the river. The results revealed that three categories of fishers were engaged in the Mathabhanga river namely, professional fishers (45.0%), seasonal fishers (37.5%) and subsistence fishers (17.5%). Shannon-Weaver diversity (H) and Margalef’s richness (D) values revealed that diversity and richness of fish species were the highest in March (H = 2.99, D = 4.45), followed by February (H = 2.96, D = 3.69) and January (H = 2.63, D = 3.15), while the lowest values were obtained in December (H = 2.60, D = 2.80). The Pielou’s evenness (e) values were found to be slightly varied with the variations of total number of species, being the highest in December (e = 0.94) and the lowest in January (e = 0.91). Different types of fishing gears like seine net, gill net, cast net, hook and line, and traps were found to be operated to catch fish by the fishers during this survey. A total of 26 fish species were identified in the catches of the Mathabhanga river. According to the survey, indiscriminate and overexploitation were found to be responsible for almost 40% loss, and pollution and siltation caused about 25% loss of ecosystem. Around 20% and 15% loss of ecosystem were caused by habitat destruction and changes of river course, respectively. As a result, the water quality was deteriorating day by day, and the availability of fish species and other aquatic biodiversity were decreasing gradually. During the survey, almost 16 fish species was found at a risk to be endangered. The specific conservation measures including community based fisheries management, establishment of sanctuary, control of pollution, maintenance of fishing gears and the implementation of fisheries act should need to be made for the sustainable utilization and conversation of fish biodiversity in the Mathabhanga river.

PELATIHAN ECO FRIENDLY PACKAGING DI BANK SAMPAH GULON ASRI SURAKARTA

Gulon Asri Waste Bank is a place used to collect waste that has been sorted first. The selected waste is then collected and made crafts. Garbage Bank with good potential to be able to increase people's income. Making packaging at the Gulon Asri Waste Bank is a form of support for the creativity of the community that makes interesting works from waste. This program aims to help the Gulon Asri Waste Bank by utilizing leftover fabrics to be developed as packaging so as to increase the commercial value of the product. The public can create economical value packaging with attractive packaging. Then, the waste bank community can also increase environmental and community awareness by empowering existing resources, increasing motivation, and community creativity. The community can also develop creativity in making sustainable and environmentally friendly packaging so that the products created by the waste bank have attractive packaging by utilizing cloth waste as well and have high selling power.

Streamlined Social Footprint Analysis of the Nascent Bio-Pellet Sub-Sector in Zambia

Climate change concerns have goaded countries toward seeking renewable energy options (bio-energy being one of them) to replace/supplant the conventional fossil-fuel alternatives (coal, oil and natural gas) commonly used now. Fuel pellets—at the confluence of the forestry, agriculture, waste management and bio-energy sectors—when produced from biomass residues, serve the dual purpose of ensuring energy security and environmental sustainability. By valorizing more and more organic wastes to bio-energy products, one could, to use the old adage, ‘kill two birds with one stone’. Social LCA is a method used to analyze a very wide range of social issues associated with the stakeholders in a value chain—workers, local community dwellers, society, global consumers, banks, investors, governments, researchers, international organizations and NGOs. In this analysis, the authors commence with a highly focused, niche literature review on the social dimension of sustainability in the African energy/bio-energy sector. The streamlined social footprint analysis inspired by the relatively lesser number of such studies for this sector in Africa is not a novel addition per se to the S-LCA knowledge base. The purpose of the application is to shed light on something in Zambia that must be understood better so as to bring about much-needed alterations in the direction of sustainable development. While the questions addressed to four different groups of stakeholders encompass a clutch of sustainable development goals, gender equality (SDG 5) and the need for greater interest on the part of governments and investors (SDG 9) to look at sustainable alternatives to the status quo stand out as concerns that need to be tided over. This paper and the streamlined social footprint analysis carried out are all the more relevant and timely when one considers some key changes that have happened in Zambia over the last five years—the implementation of the National Energy Policy in 2019 and the creation of the Ministry of Green Economy in 2021. These are verily harbingers of positive change auguring well for future developments in the bio-energy (and bio-pellets) sector, not just in Zambia but, by way of emulating and learning, in other countries on the continent.

U.S. Community Banks post the 2008 Financial Crisis

Although community banks hold a small proportion of U.S. banking assets and market share, they perform a crucial function in the U.S. economy by offering vital financial services to businesses and individuals in regions where major banks do not operate. Their diseconomies of scale put them at a competitive disadvantage in relation to large, national commercial banks when coping with digital transformation and regulatory requirements. These challenges mounted after the Great Recession. This research, with the usage of four key financial ratio categories and the implementation of logit regression, looks into how U.S. community banks evolved in the aftermath of the financial crisis, 2009-2017. It divides the entire sample period into two sub-sample periods, 2009-2012 and 2013-2017, and comparing community banks with their larger counterpart and within the community bank sector between the largest and the smallest asset size quartiles of the group. This study, to the best of our knowledge, represents the only known research at the time of publication that compares recovery of banks post the Great Recession based on whether they are community or non-community banks. It finds that community banks tended to recover more slowly in terms of the bottom line, ROE, after the Great Recession than large national banks. Additionally, community banks are more likely to carry even less capital than their national counterparts in the later time period as compared with the earlier time period. In contrast, banks with higher liquidity and greater operating efficiency are more associated with community banks than non-community banks. Also, the empirical findings posit that size matters, to a certain extent. That is, while size does not command an absolute advantage, a certain threshold may be necessary for a bank to stay competitive. This provides a rationale for mergers and acquisitions taking place in the banking sector.

Social Behavior of River Bank Communities in Banua Anyar

Humans and the natural environment cannot be separated from one another who need each other. Human behavior greatly influences changes in the surrounding environment that have excellent or negative impacts. In the article, the researcher aims to describe the social behavior of the riverbank community in Banua Anyar Village. The social behavior of the riverbanks in Banua Anyar Sub-District is that the riverbank people have always used river water for their daily needs; in the riverbank, people who live in Banua Anyar Village do not use river water for drinking water. The method used in this research is the qualitative method. Data collection through in-depth interviews, observation, and documentation. Data analysis through the stages of reduction, presentation, and drawing concludingly verified. So there are some social behaviors of the riverbank community in Banua Anyar Village occur; the riverbank community carries out routine religious activities, throws garbage and waste directly into the river, the community still uses river water for bathing, washing, toilets (MCK), and there are cages floating nets in the river environment. The social behavior of the riverbank community in Banua Anyar Village occurs in four forms of social behavior as follows, 1. Instrumental Rational Actions, 2. Value Rationality Actions, 3. Traditional Actions, and 4. Effective Actions.

Long‐term relationships between seed bank communities and wildfire across four North American desert sites

AbstractIt is well documented that the recovery of dryland plant communities following wildfire can be variable, and that legacies of fire can have long‐lasting effects on aboveground plant communities. However, our understanding of the degree to which dryland soil seed banks, or the viable seeds in situ, are impacted by fire and their subsequent postfire succession remains extremely poor. To address this important knowledge gap, we used a time‐since‐fire approach to investigate soil seed bank community changes approximately 15 and 30 years after wildfire and to determine the influence of microsites (e.g., shrub vs. interspace) on seed bank composition. We assessed soil seed bank metrics across four North American deserts, including two cold desert sites (Colorado Plateau and Great Basin) and two warm desert sites (Chihuahuan and Sonoran). In greenhouse emergence trials, we found that seed bank characteristics diverged between warm and cold desert sites, such that warm desert sites had seed banks dominated by annual plants while our cold desert sites had seed banks with greater proportions of perennial species, regardless of fire history. In cold desert sites, fire significantly altered seed bank species composition even 30 years after fire. Shrub versus interspace microsites had no observed influence on seed bank composition in any desert. However, seed bank species richness was greater under shrubs in both warm deserts. Non‐native species were present in the seed banks of all deserts and some were particularly abundant in the burned sites. Despite the presence of native species in both burned and unburned seed banks, the presence of non‐native species suggests some degree of vulnerability to future disturbances because fire can create amplifying feedback with many non‐native plants. Our results highlight strong differences in fires' relationship with seed banks for warm and cold desert sites and lend insight into how fire relates to the composition and diversity of the seeds that play a fundamental role in future plant communities.

Quantitative Analysis of Factors Influencing Financial Management among Village Community Banks’ Beneficiaries in Mbeya City, Tanzania

The present study investigated factors that influence participants’ financial administration in Village Community Banks (VICOBA) in Mbeya City. The study employed an experimental research design in which a cross-sectional sample of 100 respondents was collected using both closed and open-ended interview schedules. The study employed STATA in data analysis where descriptive and quantitative outputs were obtained. Findings showed that age, marital status, and personal decisions of VICOBA beneficiaries were positively correlated and significant with financial management at p<0.05 and p<0.01 levels, respectively. Furthermore, it was found that household size, experience, and financial literacy were inversely correlated and statistically significant with financial management at p<0.01 level. It was therefore concluded that age, marital status, and personal decisions of beneficiaries have a positive influence on financial management contrary to household size, experience, and financial literacy. It is therefore recommended that beneficiaries should optimize personal decisions for sustainable financial management contrary to household size and experience.

Meningkatkan Kesadaran Masyarakat Terhadap Lingkungan Melalui Kegiatan Trash Festival And Art Exhibition

The purpose of this research is to respond to the impact of waste on the environment through art festivals and exhibitions, workshops, music festivals and photography competitions. The results of the activity were very effective in inviting all parties to jointly protect the environment from waste and increasing public awareness to dispose of waste in its place, collaboration between the government and the Zero Waste program and several waste bank communities and the VIBE community. very effective every year as a form of shared responsibility to reduce waste accumulation in West Nusa Tenggara.