Bank Governance Research Articles

Governance effects on resource rent management and resource pollution

The issue of the resource curse has become critical for resource-rich countries in recent decades. This study empirically examines the impact of governance quality on the resource curse in 20 major resource-rich nations from 2004 to 2019. Using World Bank governance indicators, it assesses the effects of voice and accountability, government effectiveness, and control of corruption on a composite resource curse index, which includes resource rent and pollution. CS-ARDL results show that improvements in governance indicators reduce the resource curse in both the short and long term, with the largest impact seen from control of corruption. These findings highlight the crucial role of governance in addressing the resource curse.

Walter Bagehot on central bank governance: lessons from Lombard Street (1873)

This article explores Walter Bagehot’s (1826–1877) proposals for improvement of the governance of the Bank of England after the Charter Act (1844). In his book Lombard Street (1873), Bagehot addresses the inherent dilemma faced by the Bank of England since its establishment in 1694. On one hand, it was a joint-stock bank with private shareholders, while on the other, it was entrusted with fundamental responsibilities for the public interest, including lending to the state, restructuring public debt, holding the nation’s gold reserve, and managing liquidity crises. According to Bagehot, if the Bank of England succeeded in solving this dilemma, it was mainly thanks to the implementation of governance principles that he introduced and discussed. The contribution of this article is to highlight Bagehot’s original proposals on central bank governance and their significance in reconciling the interests of the diverse stakeholders of the ‘Old Lady of Threadneedle’. Central bank governance in Bagehot is a topic that has not yet been discussed.

A comparative study on the impact of service quality on customer satisfaction: Survey of joint venture and government banks in Nepal

This study explores the relationship between customer satisfaction and service quality, of the inquiry is the evaluation of client satisfaction regarding the caliber of service rendered by Nepalese commercial banks. The study attempts to determine the effect of focusing on how important it is for service quality to influence customer contentment. The primary focus service quality on customer satisfaction within the Nepalese banking industry is by using descriptive and causal comparative research techniques. A total of 383 samples were taken from six joint venture banks and three public (or Government ownership) banks in Nepal. Using primary data obtained from a survey with a five-point Likert scale, correlation and regression analysis are used in the study to examine the impact of several service quality parameters on customer satisfaction. The results show that, in the Nepalese banking industry, responsiveness, reliability, assurance, and empathy have a positive and significant association with customer satisfaction. However, responsiveness does not significantly affect customer satisfaction.

Corporate governance and financial performance of Islamic banks: new international evidence

Corporate governance and financial performance of Islamic banks: new international evidence

The Role of E-Satisfaction in Mediating Relationship Marketing (RM) on Banking E-Customer Loyalty

The research objective is to analyze the relationship between relationship marketing (RM) and e-customer loyalty, which is mediated by e-customer satisfaction in the banking industry in Banjarmasin. The increasingly rapid challenges of the banking world require organizations to improve their efforts to provide world-class services in order to attract and retain loyal customers. RM is the key answer to retaining loyal customers. The research was conducted in Banjarmasin with a population of 200 conventional government bank customers using a simple random sampling technique. Data were obtained from interviews with customers using a questionnaire distributed via Google Forms, and data analysis techniques using SEM AMOS 24. The research results prove that RM which consists of trust, commitment, communication, and conflict handling has a positive and significant effect on e-customer loyalty through e-customer satisfaction. This means that to further increase customer satisfaction for them to be loyal, the repair company must be able to maintain good relationships by providing a good level of trust, commitment, communication, and resolve conflicts that occur. Keywords: banking industry, commitment, communication, conflict handling, relationship marketing (RM), trust

The Effect of Strategic Vigilance in Achieving Sustainable Competitive Advantage: Analytical Research at Ashur International Bank

This research aims to know the interest of Ashur International Bank management in the role played by strategic vigilance in achieving sustainable competitive advantage by providing decision-makers with proactive and important information about internal and external environmental variables, so the intellectual cover of the problem stems from the extent of the bank's management ability to achieve sustainable competitive advantage in light of the multiple markets of the Iraqi private commercial banks, as well as governmental banks. Hence the importance of the research lies in presenting the accumulation of knowledge for strategic vigilance, which is one of the modern approaches in the field of strategic management, while the sustainable competitive advantage is the most influential in the work of banks due to its connection with their future and their business. The sample consists of (125) individuals (department heads, division and unit officials, and employees) in the surveyed bank. A questionnaire was used to collect data and distributed to a sample of (60) individuals, from which (50) valid forms were retrieved for analysis. The most important conclusion was the bank's management focuses in its strategic thinking on the dimensions of strategic vigilance in different ways according to the vigilance sequence (commercial, environmental, technological, and finally competitive vigilance)

Legal Certainty of Land Banking Institutions: Theoretical and Current Challenges

Land banking is a form of land acquisition carried out by systematically acquiring land that has yet to be developed, abandoned land, or vacant land for further development and optimized use to benefit the community. The Government carries out this form of land acquisition to implement public land policies. This research uses doctrinal or normative legal research with a doctrinal approach and statutory regulations related to the Land Bank Concept and Institutions that are in accordance with the development of Indonesian Constitutional Law. Those legal material collected are analysed prescriptively. The result shows that the form of land banking is a special body (sui generis) that manages land with assets separate from state assets so that activities are more flexible, efficient, and effective. The appropriate Land Bank institutional model is in the form of a public service agency. As a separate institution from the ministry, the land bank's governance is based on general principles in the financial accounting system. Land asset management is directed at utilizing land in collaboration with other parties and distributing it to specified parties. Using land bank assets is to obtain income as capital accumulation. Meanwhile, the distribution of land assets is in the context of realizing a just economy through activities in the public interest, social interests, national interests, economic equality, land consolidation, and agrarian reform. Land banks must allocate part of their land assets for land reform.

CEO power and risk taking: evidence from European banks mergers and acquisitions

PurposeThis study investigates the relationship between CEO power and the risk profile (RP) of acquiring banks through mergers and acquisitions (M&A) transactions.Design/methodology/approachThe analysis is based on 214 transactions between 2010 and 2022 involving European Union-based acquirers. To assess the impact of M&A on the acquiring bank’s RP, we compare changes in the acquirer’s RP to control banks. We use linear regression with two-stage least squares instrumental variables (2SLS-IV) to examine the effect of CEO power on changes in merger-related risk.FindingsThe findings suggest that CEO power reduces the RP of the acquiring bank. Specifically, CEOs who hold both the CEO and board chair positions tend to take fewer risks. Additionally, CEOs with high ownership, CEO pay and extensive experience (measured by tenure and acquisition experience) decrease the RP. However, prestige power is positively correlated with an increase in RPs.Practical implicationsThis research examines CEO influence on bank risk post-mergers, providing insights into governance, risk and strategic choices. The findings can guide banks in CEO selection and governance to mitigate M&A risks, improving risk management and decision-making in the financial sector.Originality/valueThis study is the first empirical investigation introducing diverse executive power metrics to analyze the link between executive power and risk-taking in the European banking sector, with a specific emphasis on the impact on M&A as critical investment choices.

Corporate Governance, Market Competition and Performance of Indian Banks

The purpose of the study is to determine how market competition and corporate governance affect bank performance (measured by profitability and asset quality). Additionally, it seeks to determine how market competition influences the governance and performance link in Indian banks between 2005 and 2022. The study primarily employs a technique of two-step system generalized method of moments, and a propensity score matching technique is applied to support our investigation. The study shows that adhering to corporate governance standards enhances bank profitability and decreases non-performing assets in India, while market concentration adversely impacts bank performance. Furthermore, the study indicates that corporate governance is more significant in low-market competition environments. The study reveals an intriguing ‘substitutive’ link between market competitiveness and corporate governance. Finally, it concludes that effective governance practices such as an effective board, transparency, board committees and shareholder rights are crucial during periods of declining profitability, poor asset quality and bank mergers.

Usage of Blockchain Mechanism in Indian Public Administration

Blockchain is an advanced mechanism that allows transparent information for a business network. Normally databases in this technology are stored in blocks that are linked together in a chain. It is used as a facilitator for the process of recording transactions and tracking assets of a business network. It will help share data for a collective group. With blockchain, cloud service and transactional data from multiple sources can be easily collected, integrated, and shared. This technology concerning India presently is used by government banking institutions as well as the government storing and sharing data for a wider group. Blockchain is popular in finance, especially money and time. Recently India has made efforts to become a society with digitalized setup by building a large citizen-scale digital public infrastructure, which is a positive push for the government. The basic motive for introducing a high ended technology like blockchain is for maintaining transparency, and to increase the speed of interactions with individuals. This paper has made attempted to study the mechanism adopted by the Indian government under a blockchain and how well it has been utilized. It has also attempted to give a clear picture, of what all developments have made with blockchain and what sectors are much concentrated with blockchain

Computer Self-Efficacy and Effectiveness of Quipper Learning Management System

Blockchain is an advanced mechanism that allows transparent information for a business network. Normally databases in this technology are stored in blocks that are linked together in a chain. It is used as a facilitator for the process of recording transactions and tracking assets of a business network. It will help share data for a collective group. With blockchain, cloud service and transactional data from multiple sources can be easily collected, integrated, and shared. This technology concerning India presently is used by government banking institutions as well as the government storing and sharing data for a wider group. Blockchain is popular in finance, especially money and time. Recently India has made efforts to become a society with digitalized setup by building a large citizen-scale digital public infrastructure, which is a positive push for the government. The basic motive for introducing a high ended technology like blockchain is for maintaining transparency, and to increase the speed of interactions with individuals. This paper has made attempted to study the mechanism adopted by the Indian government under a blockchain and how well it has been utilized. It has also attempted to give a clear picture, of what all developments have made with blockchain and what sectors are much concentrated with blockchain

Do Bank Governance Mechanisms and Financial Report Lag Affect Audit Quality?

ABSTRACT In the aftermath of banking failures in Africa, the survival of firms has thus been placed with the application of good corporate governance practice and the oversight role of internal and external auditors. This study examines whether audit quality is related to corporate board of directors and financial reporting timeliness in the context of developing countries. Using sample data from 21 universal banks in Ghana and 31 commercial banks in Kenya for the periods 2010 to 2019. The study employs the Generalized Least Square(GLS), using fixed effect to estimate the relationships. The empirical results document that board size, average 9, and board independence, 59% on average, increase audit quality in Africa. However, the relationship between board gender and audit quality is not significant. Financial report lag is not significant to audit quality in Africa. However, financial report lag in Kenya is negative and significant to quality audit. Our findings recommend that commercial banks in Africa should implement policies that would increase the size of their boards and the number of independent directors to enhance maximum benefits from good corporate governance practices.

The Role of Banking Secrecy in Activating Bank Governance: A Critical Comparative Analytical Study

The Role of Banking Secrecy in Activating Bank Governance: A Critical Comparative Analytical Study

Linking regional investments and revenues at the provincial level to investment loan decisions by local government banks in Indonesia

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth. AcknowledgmentThe investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.

Understanding Riba, Profit, And Fines in Sharia Banking

The debate and problem of riba, profit, and fines particular its practices in Sharia Banking among scholars, academics, the public, practitioners, business people, and religious organizations in Indonesia until now still reap a lot of opinions and controversy that affects the level of public trust in Sharia Banking, resulting in less growth in the market share of Sharia Banking compared to conventional banking even though Sharia Banking governance, performance, quality of compliance, image, and goodwill of Sharia Banking have adjusted to Islamic sharia. The research method used in this research is a literature study method that can be focused on the concept of usury, profit, and fines according to Sharia Banking. The results show that usury can be avoided through buying and selling transactions rather than lending and borrowing, but various understandings and information about usury do not necessarily advance the economy and Sharia Banking in Indonesia. The development of Sharia Banking faces various obstacles, including different understandings of usury among scholars, the public, business people, and a lack of encouragement from the government. Although the Sharia Banking system has been adapted to Islamic law, the market share of Sharia Banking in Indonesia is still relatively small, only 7.3% compared to conventional banking which reaches 92.7%. To increase the market share of Sharia Banking, it is necessary to increase public trust and awareness of Sharia Banking.

Pengaruh Work Stres, High Performance Work System, Organizational Identification and Organizational Support Terhadap Kinerja Karyawan

Employee performance itself will not be separated from the factors that influence it, and one of these factors is the HR management system in the organization. One system or practice that can be used to see HR performance is to use an organizational development model. This study aims to analyze the effect of work stress, high performance work system, organizatinal identification, Organizational Support on employee performance, Data collection was carried out by distributing questionnaires to 160 employees of government banks in Jakarta and Tangerang. The analysis method used in the research is multiple linear regression using statistical software. The results showed that work stress has no effect on employee performance, high performance work system affects employee performance, organizatinal identification has no effect on employee performance and organizatinal support affects employee performance. Furthermore, together work stress, high performance work system, organizatinal identification, Organizational Support on employee performance has a significant effect.

Corporate Governance and Liquidity Risk of Nepalese Commercial Banks

This study examines the relationship between corporate governance and liquidity risk in Nepalese commercial banks. Cash reserve ratio and credit to deposit ratio are selected as the dependent variables. Similarly, board size, independent directors, female directors, leverage ratio, audit committee and total assets are selected as the independent variables. This study is based on secondary data of 18 commercial banks with 108 observations for the study period from 2016/17 to 2021/22. The data were collected from Banking and Financial statistics published by Nepal Rastra bank and the annual reports of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of corporate governance on the level of liquidity risk in Nepalese commercial Banks. The study revealed that board size has a positive impact on cash reserve ratio and credit to deposit ratio. It means that increase in board size leads to increase in cash reserve ratio and credit to deposit ratio. Similarly, independent director has a positive impact on cash reserve ratio. It indicates that increase in independent director leads to increase in cash reserve ratio. Likewise, independent director has a negative impact on credit to deposit ratio. It indicates that increase in independent director leads to decrease in credit to deposit ratio. Further, female directors have a negative impact on cash reserve ratio. It shows that higher the female directors, lower would be the cash reserve ratio. In addition, female directors have a positive impact on credit to deposit ratio. It shows that higher the female directors, higher would be the credit to deposit ratio. Likewise, leverage ratio has a positive impact on cash reserve ratio. It shows that higher the leverage ratio, higher would be the cash reserve ratio. Similarly, leverage ratio has a negative impact on credit to deposit ratio. It shows that higher the leverage ratio, lower would be the credit to deposit ratio. Moreover, this study showed audit committee has a negative impact on cash reserve ratio and credit to deposit ratio. It means that increase in audit committee leads to decrease in cash reserve ratio and credit to deposit ratio. Likewise, total assets have a positive impact on cash reserve ratio. It shows that larger the total assets, higher would be the cash reserve ratio. On the other hand, total assets have a negative impact on credit to deposit ratio. It shows that larger the total assets, lower would be the credit to deposit ratio.

Legal and regulatory challenges regarding the governance of the central banks in Brazil and Chile: attributions related to monetary policy, macroprudential and financial stability

Changes in the financial regulation system are the object of reflection in this work, especially those made in Chile and Brazil. Debates around financial supervision and regulation are spreading across the world and also involve the role that Central Banks should have in terms of financial stability or at least the regulation of the banking system, thus questioning the accumulation (or not) of functions and the interface that these functions have with the role of stabilizing inflation and conducting monetary policy that these central banks have. This work aims to evaluate the evolution of recent regulatory aspects of the Brazilian financial system and compare it with the Chilean supervisory structure, where different organizations conduct monetary policy and financial regulation.

Study On The Implementation Of Good Corporate Governance In The Business Sector State Owned Banking In Langkat District

This research aims to examine the implementation of good corporate governance in the business sector state-owned banking in Langkat Regency. This research uses research methods qualitative. The data collection technique used in this research is method observation, interviews and documentation. Data analysis techniques used in research This is a qualitative data analysis technique. The data analysis component used is reduction data (data reduction), data presentation (data display), and drawing conclusions (conclusion drawings). The research results show that the role of internal audit has an influence on implementation of the principles of good corporate governance in the company. Obstacles and Obstacles in implementing Good Corporate Governance in companies, namely the cause is HR knowledge and understanding of GCG principles is still lacking. Lots of human resources who have not attended training, seminars. Apart from that, the principle of transparency is also implemented hampered by inadequate facilities and infrastructure, such as the unavailability of a website. Regarding Independence, Internal Audit at Bank Mandiri is objective in nature carry out audit activities. Apart from that, all internal audit members at the Bank Mandiri Langkat branch, has no family relationship with the Management or staff at the Langkat branch of Bank Mandiri.

Enhancing sustainable waste management in Raja Ampat: Assessing the waste bank model's effectiveness in the face of socioeconomic challenges

Background: This study investigates the execution and obstacles of waste management in Raja Ampat Regency using the Bank Sampah mechanism, which has been in operation in Waisai City since 2013. The research findings indicate that the primary challenges in the administration of Bank Sampah in Raja Ampat are the recurring turnover of management, resulting in outstanding debts to customers and a significant reliance on support from the local government. Furthermore, the waste segregation method has not been well executed, and the primary incentive for community participation is of the financial kind. Methods: This study employed qualitative approaches to evaluate the efficacy of the Waste Bank model in Raja Ampat Regency. The study was carried out for a duration of six months, specifically from January to June, in Waisai City, which serves as the hub for waste management and tourism endeavors. Findings: Nevertheless, Bank Sampah continues to be the most efficient waste management approach in Raja Ampat Regency. This study suggests implementing enhanced management practices and providing ongoing coaching, along with fostering greater collaboration between the Environmental Agency and pertinent government departments, in order to enhance community engagement. Conclusion: It is suggested that educating people about the significance of waste segregation and engaging the Government Bank as a custodian of consumer funds are further steps to enhance efficiency. The objective of this research is to offer practical assistance to local governments and other stakeholders on how to adopt waste management strategies that are both more effective and sustainable in tourism zones. Novelty/Originality of this Study: The novelty of this study lies in its focus on the implementation and challenges of the Waste Bank model in Raja Ampat, a region heavily impacted by tourism and population growth. By highlighting the unique socio economic hurdles and the importance of community engagement, this research provides practical insights for enhancing sustainable waste management in similar tourism-dependent areas.