Banks In Countries Research Articles

The Development of Mutual Aid Tontines in Nineteenth-Century Ireland

A tontine is a shared fund in which surviving investors benefit financially from the deaths of other members. Since the mid-seventeenth century it has been used variously across Europe as a tool to raise state revenue, as a private investment tool, and as a method to raise capital for building projects. In nineteenth-century Ireland, the tontine developed to include a mutual aid scheme directed at the country's working classes and poor. This form of tontine existed within a wider sphere of microcredit and microfinance instruments – including loan funds, pawnbrokers and Mont de Piété banks - directed at Ireland's poorer classes. These provided services to a section of Irish society neglected by the country's banks and other financial institutions. The mutual aid tontine was therefore very much an indigenous financial instrument developed for the needs of Irish society. Like the Irish themselves it travelled. The scheme also proved to be popular in England during the nineteenth century, predominantly in areas of high Irish immigration. This article argues that this was as a direct result of the transplantation of Irish communities and support structures into England.

Determinants of banking crises (Fragility) in the Malawian banking sector

This paper studies the determinants of banking crises or fragility in Malawi. In this study we modelled banking crisis conditions in a developing country banking sector applying a Logistic Regression model using data for Malawi for the period 1980 to 2022. We embedded banking crisis dummy, bank specific and macroeconomic drivers of crisis in the model. Our study finds that under crisis conditions macroeconomic, monetary and fiscal drivers such as the ratio of external debt stock to gross national income ratio, debt service costs to primary export revenue ratio, broad money to GDP ratio, changes in real interest rates, growth in real GDP, total reserves to GDP ratio has a negative and significant impact on banking crisis and fragility in Malawi. These findings are important for policy makers especially in an environment where fiscal dominance is prevalent and drives a significant build up of domestic debt (treasury assets) on the banks’ balance sheets.

Comparison of Wealth-Related Inequality in Tetanus Vaccination Coverage before and during Pregnancy: A Cross-Sectional Analysis of 72 Low- and Middle-Income Countries.

Immunization of pregnant women against tetanus is a key strategy for reducing tetanus morbidity and mortality while also achieving the goal of maternal and neonatal tetanus elimination. Despite substantial progress in improving newborn protection from tetanus at birth through maternal immunization, umbilical cord practices and sterilized and safe deliveries, inequitable gaps in protection remain. Notably, an infant's tetanus protection at birth is comprised of immunization received by the mother during and before the pregnancy (e.g., through childhood vaccination, booster doses, mass vaccination campaigns, or during prior pregnancies). In this work, we examine wealth-related inequalities in maternal tetanus toxoid containing vaccination coverage before pregnancy, during pregnancy, and at birth for 72 low- and middle-income countries with a recent Demographic and Health Survey or Multiple Indicator Cluster Survey (between 2013 and 2022). We summarize coverage levels and absolute and relative inequalities at each time point; compare the relative contributions of inequalities before and during pregnancy to inequalities at birth; and examine associations between inequalities and coverage levels. We present the findings for countries individually and on aggregate, by World Bank country income grouping, as well as by maternal and neonatal tetanus elimination status, finding that most of the inequality in tetanus immunization coverage at birth is introduced during pregnancy. Inequalities in coverage during pregnancy are most pronounced in low- and lower-middle-income countries, and even more so in countries which have not achieved maternal and neonatal tetanus elimination. These findings suggest that pregnancy is a key time of opportunity for equity-oriented interventions to improve maternal tetanus immunization coverage.

Bank performance and financial stability during the COVID-19 pandemic: lessons from the MENA region

PurposeThis study investigates the role of market concentration and efficiency in banking system stability during the COVID-19 pandemic. We empirically test the hypothesis that market concentration and efficiency are significant determinants of bank performance and stability during the time of crises, using a sample of 575 banks in 20 countries in the Middle East and North Africa (MENA).Design/methodology/approachThe main sources of bank data are the BankScope and BankFocus (Bureau van Dijk) databases, World Bank development indicators, and official websites of banks in MENA countries. This study combined descriptive and analytical approaches. We utilize a panel dataset and adopt panel data econometric techniques such as fixed/random effects and the Generalized Method of Moments (GMM) estimator.FindingsThe results reveal that market concentration negatively affects bank profitability, whereas improved efficiency further enhances bank performance and contributes to the banking sector’s overall stability. Furthermore, our analysis indicates that during the COVID-19 pandemic, bank stability strongly depended on the level of market concentration, but not on bank efficiency. However, more efficient banks are more profitable and stable if the banking institutions are Islamic. Similarly, Islamic banks with the same level of efficiency demonstrated better overall financial performance during the pandemic than their conventional peers did.Research limitations/implicationsThe main limitation is related to the period of COVID-19 pandemic that was covered in this paper (2020–2021). Therefore, further investigation of the COVID-19 effects on bank profitability and risk will require an extended period of the pandemic crisis, including 2022.Practical implicationsThis study provides information that will enable bank managers and policymakers in MENA countries to assess the growing impact of market concentration and efficiency on the banking sector stability. It also helps them in formulating suitable strategies to mitigate the adverse consequences of the COVID-19 pandemic. Our recommendations are useful guides for policymakers and regulators in countries where Islamic and conventional banking systems co-exist and compete, based on different business models and risk management practices.Originality/valueThe authors contribute to the banking stability literature by investigating the role of market concentration and efficiency as the main determinants of bank performance and stability during the COVID-19 pandemic. This study is the first to analyze banking sector stability in the MENA region, using both individual and risk-adjusted aggregated performance measures.

Islam, Islamic Banking and Entrepreneurship: Evidence from OIC Member Countries

There is a view that Islam hinders entrepreneurship in Muslim societies in general. Unfortunately, there is little empirical work testing the negative effect of Islam as a religion on entrepreneurship. In an attempt to fill this gap, this study aims to reassess this effect in OIC member countries. Specifically, the aim is to assess whether Islam is an impediment to entrepreneurship in these countries and whether the presence of Islamic banking institutions in these countries strengthens or moderates such a relationship. Using multivariate regression analysis, the results indicate that there is indeed a negative relationship between Islam and entrepreneurship in OIC countries where Islamic banking is absent. But, this relationship does not hold where Islamic banking exists. Indeed, the presence of Islamic banks in countries where Islam is the state religion cancels out any negative effect of Islam and has a positive effect on entrepreneurship in the country concerned. The results of this study thus reopen the debate on whether Islam as a religion discourages competition, innovation, entrepreneurship and economic development compared to other religions.

DETERMINANTS OF ISLAMIC BANKING FINANCIAL PERFORMANCE: ANALYZING THE ROLE OF CSR, ZAKAT, AND GCG IN INDONESIA AND MALAYSIA

Although the Islamic banking sector is expanding rapidly, it still needs to improve its financial performance in order to compete with conventional banking. This study attempts to investigate how corporate social responsibility (CSR), zakat, and good corporate governance (GCG) affect the financial performance of Islamic banking in Indonesia and Malaysia from 2015 to 2021. Using the quantitative method of panel data regression, the study discovered that, simultaneously, CSR, zakat, and GCG have a significant impact on the financial performance of Islamic banking in both countries. Partially, only GCG has a noticeable influence while the other two do not. The results of this study encourage Islamic banks to consistently develop CSR, zakat, and GCG in every aspect of their operations and lead the industry.

The evolution and development of electronic payment in a bank. Case study: CPA-Bank

The research makes an attempt at analysing the state of affairs of the electronic payment in Algeria and propose perspectives for future development in that regard. To attain this objective, the bank of Crédit Populaire Algérie (CPA) in Algeria was taken as a case study. The primary reason of choosing this bank was by virtue of its leading market share in the local market and many electronic services and payment cards in use. The bank data from 2016 to 2022 was collected to perform an analysis of the growth rate of electronic payment services and to carry out a forecast of these services using exponential smoothing. Hypotheses tests demonstrate with validity that in the upcoming years, the number of electronic payment services will considerably increase. First, the use of electronic payment in Algeria has increased due to consumers’ changing preferences and due to the necessity of practical and safe payment solutions. Second, the bank used as a case study has invested in the development of electronic payment by proposing e-payment solutions to its consumers. Finally, the future of electronic payment will be marked by an increase in the number of electronic services. The findings of the research highlight consumers’ changing preferences towards electronic payment and consequently all banks should invest in designing and executing strategies of electronic payment services. It is recommended that scholars could use the findings of this research and perform a benchmark with other banks in Algeria or banks in other MENA countries. Moreover, the number of years could be further increased to determine if the growth of these services is to increase, decrease, or stay constant.

PRECIOUS METALS MARKET FORECASTING IN THE CURRENT ENVIRONMENT

The article analyzes trends in the precious metals market. The general characteristics and assessment of the most popular precious metals are given. The key factors influencing the supply and demand of precious metals are analyzed. Precious metals market forecasts have been developed. An analysis of the state of the world gold market in recent years has been carried out. Using the method of comparative analysis, modern trends in the supply and demand of this precious metal were revealed. The dynamics and structure of world gold reserves are considered. The world's precious metal reserves in different countries were also studied. The potential gold reserves in Ukraine are estimated. The production of precious metals in the world was studied. The rating of countries producing precious metals has been compiled. The leaders in this field have been identified based on the criteria of production capacities and growth rates of precious metals extraction. The structure of consumption of precious metals in the world is analyzed. The factors that lead to an increase in the rate of consumption of precious metals in modern conditions are considered. In particular, an increase in the current rate of commissioning of new solar energy capacities and an increase in the use of electric transport have been identified, which has significantly increased the demand for precious metals in the world. The impact on price dynamics of geopolitical and other economic factors, such as changes in trade relations between countries, currency fluctuations, market crises, changes in the monetary policy of central banks in many countries, and, above all, the increase in interest rates by the US Federal Reserve, was also studied. Considering these and other influencing factors, forecasts of the price dynamics of the precious metals market for 2024 and subsequent years were developed using a graphical method.

Corruption and Bank Risk‐Taking in Dual Banking Systems

ABSTRACTResearch Question/IssueWe investigate whether the risk‐taking of Islamic banks is affected differently by corruption compared to conventional banks. We also examine whether the characteristics of the Shari'ah Supervisory Board (SSB) of Islamic banks and the characteristics of the board of directors of conventional banks play an effective role in moderating such an effect.Research Findings/InsightsWe find consistent evidence that banks in countries with higher corruption have higher bank risk for both conventional and Islamic banks. However, this association is attenuated by the size of the SSB, the presence of female board members, and higher academic qualifications of SSB members. For conventional banks, the moderating effect of the presence of female directors and academically qualified members on the board of directors is also prevalent but to a lesser extent.Theoretical/Academic ImplicationsThis study contributes to the corporate finance literature more generally by highlighting the role played by corporate governance, particularly the presence of female members and academically qualified members on the SSBs of Islamic banks and on the board of directors of conventional banks, in mitigating the effect of corruption on bank risk‐taking for the two bank types.Practitioner/Policy ImplicationsOur findings are based on a matched sample of banks operating in 10 OIC (Organization of Islamic Cooperation) countries and have important implications for bank stability and bank governance reforms. On the detrimental side, urgency of the anti‐corruption campaigns in these countries is justified due to the significant effect of corruption on risk‐taking for both conventional and Islamic banks. Overall, to better fight corruption in countries with dual banking systems, there is a need to enforce stricter rules for all types of banks.

Huawei Pakistan Providing Cloud Solutions for Banking Industry: A Data Driven Study

This report explores how Huawei Pakistan's cloud solutions have revolutionized the country's banking industry. Using a combination of surveys and interviews, the study uses a mixed-methods approach to thoroughly evaluate the many effects of cloud adoption. The results are solid and highlight the significant advantages that cloud technology have provided to Pakistani banks. One major gainer is operational efficiency, with banks reporting notable increases in cost savings, process simplification, and overall operational efficiency. These results support the focus on cloud solutions' transformative potential found in the research currently in publication. Adoption of cloud computing has an equally significant impact on customer experience and satisfaction, with increased customer satisfaction levels, response times, and service innovation resulting from its use. The research findings are consistent with the literature's claim that cloud computing enables banks to offer improved customer experiences in a time when customers expect quick and easy access to services. Most importantly, the study emphasizes how crucial it is to comply with regulations and maintain data security while adopting cloud computing. After using Huawei's cloud solutions, banks in Pakistan reported a considerable improvement in data security, privacy safeguards, and regulatory compliance. In the modern banking context, the benefits of strategically using technology to pursue excellence are visible in operational efficiency, customer satisfaction, data security, and regulatory compliance. These effects are truly revolutionary. Because of the cloud's revolutionary ability, Pakistan's banking sector is well-positioned to thrive as the digital era unfolds. Currently Pakistan SBP have released the cloud adoption frame, suggest and guide how financial institution adopt cloud, and new digital banks also requiring cloud environment to support business raise rapidly. However, the cloud on the market or have less function, or have data sovereign risk. Huawei product HCS is the kind of cloud infrastructure can both provide plenty cloud services and protect data security.

Perspective: The Place of Pork Meat in Sustainable Healthy Diets

The food systems sustainability framework has 4 domains: nutrition, economics, environment, and society. To qualify as sustainable, individual foods and total diets need to be nutrient-rich, affordable, environmentally friendly, and socially acceptable. Pork is the most consumed meat globally, providing high-quality protein and several priority micronutrients. With research attention focused on plant-based diets, it is time to assess the place of pork meat protein in the global sustainability framework. First, not all proteins are equal. The United States Department of Agriculture category of protein foods includes meat, poultry and fish, eggs, beans and legumes, and nuts and seeds. These protein sources have different protein digestibility profiles, different per-calorie prices, and different environmental footprints, measured in terms of greenhouse gas emissions. Second, most analyses of animal-source proteins combine beef, pork, and lamb into a single category of red meat. Beef, pork, and lamb have different nutrient profiles, different protein costs, and different impacts on the environment. Future analyses of nutrient density and monetary and carbon costs of alternative diets would do well to separate pork from beef, lamb, and chicken. There are also different profiles of global food demand. Prior analyses of global Food and Agriculture Organization Statistical Database food balance sheets joined with World Bank country incomes have consistently shown that rising incomes across lower- and middle-income countries (LMIC) create a growing demand for meat to replace traditional plant proteins. Most of the observed increase has been for pork and chicken rather than beef. This ongoing LMIC protein transition toward more animal proteins may be irreversible as long as incomes grow. The present analyses explore the place of pork in sustainable healthy diets worldwide, given the need for high-quality protein and the predictable patterns of global food demand.

The puzzle of convex/concave ESG returns and large banks in MENA region countries

This study examines the linear and nonlinear impacts of the environmental, social, and governance (ESG) components on bank stock returns in the region of the Middle East and North Africa (MENA). It also investigates the impact of bank size on the nexus between ESG and bank stock returns. Using a sample of 59 banks from the 12 countries in the MENA region between 2010 and 2021 and applying generalized quantile regression, we find the following. Our results suggest that ESG components and bank stock returns have a nonlinear relationship. In other words, the link between the ESG components and stock market returns could be U-shaped, inverted U-shaped, or both. Additionally, we find that size influences the link between the ESG pillars and bank stock returns. With few exceptions, large banks strengthened the positive link between ESG components and stock returns. Our findings align with the concept of “too little of a good thing” or “too much of a good thing” effects, along with the law of diminishing marginal returns.

Monetary Policy and Inflation Targeting Framework in Indonesia Dual Banking System

Since 1990 the use of inflation as a nominal anchor used as the main target of monetary policy began to be an option for central banks in several countries. The new monetary policy framework is then known as Inflation Targeting Framework (ITF). This study tries to look at some important variables that affect the inflation rate within the framework of the Inflation Targeting Framework concept using Vector Error Correction Model. The results of data processing using VECM analysis can determine the behavior of Bank Indonesia Rate (BI Rate), Money Supply, Interbank Money Market (PUAB), Sharia Interbank Money Market (PUAS), and Sharia Bank Indonesia Certificates (SBIS). These variables significantly affect the inflation rate. The results of this study can provide important information for decision makers and academics as an evaluation of the application of ITF based on its application in Indonesia.

Lending corruption and bank loan contracting: Cross-Country evidence

Using World Bank survey data, we document that banks extend more favorable loan terms to borrowers in countries with more lending corruption. This relation is stronger when borrowers have financing constraints but weaker in countries with stronger monitoring of foreign bank ownership or with stronger religiosity. We also find that banks in countries with high lending corruption have poor loan quality and earnings performance and are more susceptible to trouble during a financial crisis. Overall, our findings suggest that corruption “greases the wheels” for borrowers but is detrimental to bank shareholders.

Legal origin and bank lending behavior in developing countries: The mediating role of revenue diversification

AbstractThis paper explores the relationship between legal origin, revenue diversification, and bank lending behavior. The analysis is based on a sample of 2590 commercial banks operating in 139 developing countries from 2004 to 2022. Using various panel data estimation techniques and alternative measures of bank lending behavior, the results indicate that banks in common law countries experience lower levels of loan growth compared to their counterparts in civil law countries. The study results also show that revenue diversification indirectly alleviates the negative effect of loan growth in banks originating from a common law legal origin. Notably, this effect is not observed in banks within low‐income and African countries, highlighting the importance of policies aimed at enhancing institutional capacity within their legal and judicial systems. Overall, the results of this study underscore the significance of legal origins in shaping the lending dynamics of banks in developing countries.

Predictive Power of Random Forests in Analyzing Risk Management in Islamic Banking

This study utilizes the random forest technique to investigate risk management practices and concerns in Islamic banks using survey data from 2016 to 2021. Findings reveal that larger banks provide more consistent survey responses, driven by their confidence and larger survey budgets. Moreover, a positive link is established between a country’s development, characterized by high GDPs and low inflation and interest rates, and the precision of Islamic banks’ survey responses. Analyzing risk-related concerns, the study notes a significant reduction in credit portfolio risk attributed to improved risk management practices, global economic growth, stricter regulations, and diversified asset portfolios. Concerns related to terrorism financing and cybersecurity risks have also decreased due to the better enforcement of anti-money laundering regulations and investments in cybersecurity infrastructure and education. This research enhances our understanding of risk management in Islamic banks, highlighting the impact of bank size and country development. Additionally, it emphasizes the need for ongoing analysis beyond 2021 to account for potential COVID-19 effects and evolving risk management and regulatory practices in Islamic banking.

Foreign Exchange Operations of Islami Bank Bangladesh Limited

In the dynamic global financial landscape, foreign exchange operations play a pivotal role in facilitating international trade and economic activities. Islami Bank Bangladesh Limited (IBBL) has emerged as a significant player in the country's banking sector with a strong commitment to Shariah-compliant practices. Understanding the nuances of its foreign exchange operations is essential for assessing its contribution to the national economy. This study aimed to comprehensively analyze the foreign exchange operations of Islami Bank Bangladesh Limited, focusing on its performance and adherence to Islamic principles. The research involved an in-depth examination of IBBL's foreign exchange operations, including documentary analysis, interviews with bank officials, and a review of relevant literature. Data on foreign exchange transactions, compliance with Shariah principles, and financial performance were analyzed. The study found that IBBL has demonstrated commendable performance in foreign exchange operations. It has successfully maintained a substantial share of the foreign exchange market in Bangladesh, accounting for over 20% of total transactions. Moreover, IBBL's strict adherence to Shariah principles in its foreign exchange activities has positioned it as a reputable Islamic banking institution. The bank's compliance rate with Islamic principles in foreign exchange dealings exceeded 90%, reflecting its commitment to ethical banking practices. Islami Bank Bangladesh Limited has emerged as a prominent player in the foreign exchange market, maintaining both financial viability and adherence to Shariah principles. Its commitment to ethical and Islamic banking practices has contributed significantly to the country's economic growth. IBBL should continue to focus on enhancing its foreign exchange operations, ensuring strict adherence to Islamic principles, and expanding its market presence.

The importance of human resources management for recruitment and selection in banks in african countries

Human resource management is of great use within a company. This sector can be described as an association of skills and methods, policies, techniques and practices defined with the aim of managing internal behavior and strengthening human capital. On the other hand, the banking sector has grown and demands greater attention from employees. Therefore, the need for human resources management within banking organizations has become a relevant factor for the institution's good performance. With this in mind, the aim of this study was to assess the importance given to the resources sector by the employees of 4 bank branches, called BFA and BIC, both located in the Province of Bié, city of Kuito in the country of Angola. The choice of the country where the research was carried out was due to the lack of studies on human resources management and the ease of access to employees. The research was carried out using questionnaires made up of 10 simple, objective questions. The sample consisted of 50 bank branch employees, 25 from BIC and 25 from BFA. The data shows that the importance of the sector within organizations is explicit and abundant, as well as the evolution of recruitment and selection practices, in addition to the similarity in the management of both banks. Another factor identified in the results is that banks have increasingly used digital media in the employee selection and recruitment process and this is also part of the evolution of human resources management.

Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasing

Purpose This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16. Design/methodology/approach A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions. Findings Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements. Practical implications The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles. Social implications Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange. Originality/value This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.

Board Structure, CEO Equity-Based Compensation, and Financial Performance: Evidence from MENA Countries

This paper investigates the association between board of director (BOD) structures and CEO equity-based compensation (long-term incentive) for commercial banks (conventional and Islamic banks) in MENA countries. Specifically, we take board size and board independence to measure the board structure. Furthermore, we investigate the influence of board structure on the association between CEO equity-based compensation and financial performance. Moreover, we compare conventional and Islamic banks in testing these relationships. Using a sample of 65 banks in MENA countries for the period between 2009 and 2020, we show a significant positive association between board size and CEO compensation. However, we find the same association between these variables for IBs, but the effect of board size on CEO compensation is less. We also show that board independence is negatively correlated with CEO compensation. Nevertheless, the relationship between board independence and CEO ownership is positive for IBs. For the moderating test, we find that effective board structure provides more incentives to the CEO, leading them to achieve higher financial performance. The Islamic bank’s business model (based on Shari’ah principles) contributes to the different influences of board structure on CEO compensation. Our results provide the insight that a strong and effective board is important for managing the executive’s compensation system. The findings of this study have implications for financial firms, policymakers, and regulators. Specifically, the study may help in understanding the benefits of different compensation structures relative to different types of financial firms.