International Bank Research Articles

International Banking Institute named after Anatoliy Sobchak

Aim. The presented study aims to analyze the organization and results of the industrialization of the USSR economy in 1928–1940 and to evaluate the possibilities of using this experience for the restructuring of the modern domestic economy developing under the conditions of antiRussian sanctions.Tasks. The authors examine the features of the current stage of economic development in Russia and the impact of economic sanctions on it; analyze the experience of socialist industrialization in the USSR; provide recommendations for improving the manageability of the modern domestic economy and accelerating its industrial development.Methods. This study uses the methods of historical and economic analysis, comparison, statistical processing of economic data, monographic method, expert assessment, and institutional approach.Results. Nowadays, the Russian economy is developing turbulently due to the numerous political and economic sanctions imposed on the country. That said, the current stage of economic development in the Russian Federation is in many ways similar to the period of Soviet industrialization carried out in the USSR before World War II (1941–1945) in terms of the totality of influencing factors and mechanisms of their manifestation. This makes it possible to take into account the lessons of Soviet industrialization in the modern economic policy of the Russian Federation. Soviet industrialization was based on centralized public administration and directive five-year planning. Such approaches are not applicable in modern Russia without institutional restructuring. Therefore, the experience of Soviet industrialization should be used selectively.Conclusions. In the context of increasing sanctions pressure, it is advisable to strengthen state intervention in the economy — not only to preserve its stability, but also to set the vector of long-term development. Such development is associated with the increasing importance of industrial production based on a new technological base. This calls for an approach to the modernization of economic macro-regulation that would be differentiated by industry and region. Such an approach can be developed using the experience of Soviet industrialization. However, it should be used selectively based on an assessment of the ratio of public and private interests. Today, the transition to a full-scale mobilization economy in Russia is impractical.

Business cycles, stock returns and the transmission channels of conventional and unconventional monetary policy

ABSTRACT The zero-lower bound (ZLB) may constrain the ability of Federal Reserve (Fed) to influence financial markets and the economy. This note examines the effectiveness of the interest rate channel and the credit channel of conventional and unconventional monetary policy while accounting for business cycle fluctuations. We use intraday industry returns and a number of industry-specific and firm-specific indicators to capture the sensitivity of firms’ demand to interest rates (interest rate channel) and firms’ financial constraints (credit channel). Our results indicate a dramatic change in the effectiveness of the transmission channels across business cycles and across periods. We find that the interest rate channel operates equally well during recessions and expansions pre-ZLB, but that this channel has ceased to function during the ZLB regardless of the stage of the business cycle. In contrast, the credit channel operates only during recessions in the conventional period, while it has been remarkably effective during both recessions and expansions in the ZLB era. 1 1 We thank Stefania D’Amico, Emmanuel Lartey, Lin Yan, and conference participants of the Econometric Society Asia Meeting 2021, WEAI 2021, World Finance Conference 2022, and International Finance and Banking Society 2018 for helpful comments and suggestions. We gratefully acknowledge the support of the Faculty Research Grant of the College of Business and Economics, California State University, Fullerton.

China-Risiken stärker beachten

Abstract Germany should pay more attention to risks in procurement, manufacturing and sales in China. First, China’s population has been shrinking since 2022 and is rapidly ageing; this will cause its economic strength as well as production and consumption opportunities to decrease. Secondly, the threat of a Taiwan invasion is rising and only mitigated by the globally integrated chip industry. Thirdly, China will increasingly shape standards in international payments and Central Bank Digital Currencies. This will raise its power for sanctioning other countries financially. Overall, while Germany should focus on further diversifying its economy, its exposure with regard to China is lower than commonly thought.

Transition of Countries to Currency and Trade Sustainable International Cooperation on the BRICS Platform

The transition to monetary and trade sustainable cooperation within the BRICS can be carried out on the basis of the energy economic equivalent of the national currencies of sovereign states. The International Monetary Index will link the existing commodity masses of states with national currencies. The creation of two-circuit national monetary and financial systems will create conditions for the evolutionary transition of budget formation. Double-circuit monetary and financial systems will bind national currencies to energy economic equivalents and goods. An interim measure of the national currency due to the energy economic equivalent and a group of goods with both commodity and monetary properties creates their currency value. This makes it possible to estimate their value in the energy economic equivalent. The energy economic equivalent can become a meter of the intrinsic value of any payment means. The economic reserve base, expanded at the expense of groups of goods, makes it possible to create a stable basis for strengthening national currencies in the system of domestic, regional and international settlements, maintaining their stability. It is possible to connect the financial and real sectors of the international economy of sovereign states through the BRICS investment international bank. This will allow the generation of long and cheap financial resources by issuing securities and digital financial assets secured by a group of goods with foreign exchange value. National currencies will become full-fledged, tied to the amount of those resources that are in the provision of the BRICS investment international bank.

Hindering or nurturing digital transformation: the role of consumer's thinking capabilities and other customers' perception

PurposeDigital transformation (DT) has created a number of significant opportunities and related alterations in consumers' behaviours. However, consumers differ in adopting DT. There is still a need to investigate consumer's capabilities and his/her perception of other customers that supports or hinders the DT process. This study aims to investigate human thinking capabilities (critical thinking, holistic thinking and creative thinking) as drivers of two specific types of outcomes: DT barriers and/or DT nurture. In addition, this research also examines the linkage between human capabilities (three types of thinking) and other customers' perception. Finally, it postulates that other customers' perception drives DT barriers and/or DT nurture.Design/methodology/approachApplying to the public, private and international banking sectors, 273 questionnaires were collected. The collected data was analysed using AMOS as well as the PROCESS macro.FindingsThe results showed that human thinking capabilities have different effects on DT barriers and nurture. While critical thinking has a significant effect on DT barriers, both holistic thinking and creative thinking have a significant effect on DT nurture. Other customers' perception construct has a significant effect on both DT barriers and nurture. In addition, only holistic thinking has an effect on other customers' perception.Originality/valueThis study advances knowledge in three ways. Firstly, it examined DT barriers and nurture as variables from the customer's perspective. Secondly, it examined each human thinking capability on DT barriers and nurture, giving more insights. Thirdly, it studied human thinking capabilities as one of the main factors that might affect other customers' perception and DT barriers and nurture, while most previous studies focused only on other customers' perception's impact on DT barriers and nurture.

한⋅일 은행산업의 메타효율성 비교: 이윤을 바탕으로

Purpose: This study aims to improve the competitiveness of the domestic banking industry by diagnosing the efficiency of the Japanese and Korean banking industries, which have similar financial environments such as long-term low growth and low interest rates.
 Research design, data, and methodology: The research method uses probabilistic frontier analysis (SFA) and the form of a profit function based on five years (2015- 2019) data for 35 banks in Korea and Japan. This study estimates the individual frontiers of Korean and Japanese banking groups, and estimates the meta-frontiers that encompass the individual frontiers of Korean and Japanese banks operating with different technologies. In addition, the international technology gap between two countries is measured and meta-profit efficiency is calculated using the profit efficiency of each country and the international technology gap. Through this verification process, the management characteristics of countries leading the meta-frontier and the banking industry in that country are confirmed.
 Furthermore, we regressively analyze the determinants of inefficiency for the profit and technology gap of the two national banking groups and draw implications. This study differs from previous studies in that it uses a probabilistic frontier analysis and a profit function for the international banking industry from a profit perspective.
 Results: As a result of empirical analysis, first, in terms of profit efficiency by country, the Bank of Korea group is more efficient. However, in the international technology gap, the Japanese banking group is considerably ahead of Korea. Accordingly, in terms of meta profit efficiency, the Japanese banking group is ahead of Korea, which is due to the international technology gap. Second, the meta profit efficiency of Japan’s three major urban banks is the highest with an average of 0.91 for five years, and among them, Mitsubishi UFJ Bank was found to be the leading bank among all the research target banks. Third, it was analyzed that the profit efficiency improvement effect occurs only when the market concentration (HHI index) of both countries’ banking groups is increased and the net loan ratio is lowered.
 Implications: Therefore, it was suggested that the banking industry of the two countries should increase their market dominance by increasing the beneficiary assets other than loans, because the increase in bad debts due to credit risk increases as the amount of loans increases and negatively affects the efficiency of banks.

Sustainable development of Russian energy companies: ESG principles

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The Impact of Borrowing Debt on the Efficiency Loss of Municipal Infrastructure Investment and Construction

Borrowing debt has impacted on the financing effect and governance effect of investment entities. Borrowing debt has become an important financing channel for the investment and construction of municipal infrastructure in China. In this paper, panel data from 2003 to 2018 in cities above the prefecture level in China are used to study the impact of borrowing debt on the efficiency loss of municipal infrastructure investment and construction. First, the results indicate that financing constraints have a greater impact than agency costs for the investment and construction of municipal infrastructure in China. Second, borrowing debt can effectively reduce the efficiency loss of municipal infrastructure investment and construction due to financing constraints. Third, the governance effect of borrowing debt is not very positive, but the rigid repayment of debt and interest to international banks will play some positive governance effects in the later stage.

Experimentation and appropriability inearly‐stageventures: Evidence from theUSsoftware industry

AbstractResearch SummaryThis study examines the tension between learning and appropriability that arises as early‐stage ventures experiment in the market. When formal intellectual property protection is weak, the learning benefits of experimentation may be offset by the imitation risks. I test this argument on a hand‐collected dataset of 1,203 US‐based software ventures, using thesoftware release life cycleterminology to measure experimentation and the 2014 US Supreme Court decisionAlice Corp v CLS Bank Internationalas a negative shock to patent protection. Following this ruling, treated ventures are less likely to engage in experimentation. This pattern is stronger for ventures facing low uncertainty or strong competition. Overall, the evidence suggests that ventures perceive the tension between learning and appropriability and adjust their strategy accordingly.Managerial SummaryThe Lean Startup suggests that entrepreneurs should rely on experimentation in bringing their products to the market. However, the return to experimentation also depends on its costs. One potential cost is the risk of imitation. I study whether ventures perceive the trade‐off between learning about the market and the risk of imitation. I hand‐collect data on over 1,200 US‐based software ventures. I analyze the effect of the US Supreme Court decisionAlice Corp v CLS Bank International, which weakened patent protection for firms building financial software. I find that, once patent protection becomes more difficult, ventures conduct less experimentation in the market. Therefore, ventures appear to perceive this trade‐off and take it into account in designing their strategy.

The Changing Risk Preferences of High-Net-Worth Individual Investors During the Global Financial Crisis

This paper studies how high-net-worth individual (HNWI) investors changed their risk preferences during the Global Financial Crisis (from 2007 to 2009) and how their asset allocation evolved in the same period. We had access to a confidential database from a Swiss international private bank with two samples of risk preferences questionnaires (suitability tests) filled by the same HNWI investors in 2007 and 2009. We compared the suitability tests’ suggested investment profiles to those investors’ real asset allocations at the same moments in time. We estimated correlation coefficients and ran hypothesis tests to examine if the changes in risk preferences during the period were statistically significant. Findings: HNWI investors’ risk preferences changed during the period, but the gap between their self-assessed risk preference and their real asset allocation narrowed, suggesting that they have a convex value function curve. We found evidence consistent with the psychological risk-as-feelings model, as lower risk-exposed HNWI investors also tended to decrease their risk preference level during a crisis. The evidence also suggests a stronger preference for cash during the crisis period, confirming the results of studies that have focused on the importance of liquidity during external shocks.

Bank Insolvency and Resolution in European Countries: A Case Study of Lehman Brothers

The 2008 financial crisis served as a cautionary tale that talks about concerns of safety and stability in the finance industry. Financial markets and institutions are vulnerable to periodic issues of significant illiquidity and insolvency, in addition to fraud and other malpractices that, if uncontrolled, can lead to a crisis, system wide. The risk of instability exists both at the individual as well as the aggregate levels of financial institutions and markets, and its realization can result in substantial social and economic costs. Amidst over three decades of struggle to smoothen international financial regulatory and prudential policies, the Basel Committee on Banking Supervision did not address the resolution of a large, complex international bank. The 2008-2009 financial crisis and the conclusion that multiple large and complex financial institutions had become too large to fail propelled resolution towards the forefront of the global regulatory agenda.

The macro-financial effects of international bank lending on emerging markets

We provide novel empirical evidence on the effects of cross-border bank lending on emerging market economies' (EMEs) macro-financial conditions. We identify causal effects by leveraging the heterogeneity in the size distribution of bilateral cross-border bank lending to construct granular instrumental variables for aggregate cross-border bank lending to 22 EMEs. Cross-border bank credit causes higher domestic activity in EMEs and looser financial conditions. Financial condition indices ease, nominal and real effective exchange rates appreciate, sovereign and corporate spreads narrow, domestic interest rates fall, and housing prices increase. Similarly, real domestic credit grows, real GDP expands, and imports rise. Using a simple model, we motivate our instrument and show how commonly used instruments that correlate with global financial conditions (e.g. the global financial cycle) can yield biased estimates. We find empirical evidence of an amplification bias, which is consistent with the prominent role of global risk perceptions and international risk spillovers.

Monetary policy spillover to small open economies: Is the transmission different under low interest rates?

We explore the impact of low and negative monetary policy rates in core world economies on bank lending in four small open economies – Canada, Chile, the Czech Republic and Norway – using confidential bank-level data. We show that the impact on lending in these small open economies depends on the interest rate level in the core. During normal times, monetary policy cuts in the core can reduce credit supply in small open economies. In contrast, when interest rates in the core are low, further expansionary monetary policy increases lending in small open economies, consistent with an international bank lending channel. These results have important policy implications, suggesting that central banks in small open economies should watch for the impact of potential regime switches in core economies’ monetary policy when rates shift to and from the very low end of the distribution.

The Role of Investment Banking in the Global Financial Crisis: Taking Goldman Sachs as an Example

Being one of the most critical crisis in the economic world, the financial crisis during 2008 has seriously influenced commercial activities on a global level. The impact includes but not limited to individuals, small corporations, and entire enterprises. Experiences from the crisis is valuable since the financial field was severely traumatized during the pandemic. In analyzing the arising phenomenon, the relationship between financial crisis and investment banks are especially worth of addressing, as investment bank is a form of business that is heavily dependent on commercial activities and capital stability. Those commercial activities covers range from stocks to mortgages. Given all the factors mentioned above, this research aims to illustrate the role of investment banking through literature review and critical analysis of data related to financial crisis. In hope of comprehensive insight of the issue, the thesis mainly addresses Goldman Sachs, which is ranked as one of top 5 international investment banks for the last decade.

The role of social responsibility accounting in mitigating the economic impacts of the COVID-19 pandemic in Jordan

The purpose of this research was to determine whether or not social responsibility accounting plays a part in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. The study’s secondary objective was to investigate the COVID-19 pandemic that broke out in Jordan. It is vital to find adequate remedies, just as it is necessary in other nations, in order to avert the damage that this pandemic might cause to society, individuals, and the economy. The methodology of the study centered on utilizing both descriptive and inferential techniques to data collection and analysis. Participants in the survey were 861 branch managers working for Jordanian and international banks that were licensed to do business in the country. Each participant utilized the Purposive Sample Approach while completing one of the 500 questionnaires that were handed out. The research identified a number of conclusions, including the fact that there is a statistically significant role for social responsibility accounting (economic and social) in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. According to the findings of the study, economic and social responsibility accounting both play a part in reducing the impact of adverse economic conditions such as unemployment, budget deficits, and the risk of consumer credit. This study is one of the most important studies in terms of its scientific contribution at the level of Jordan as a Middle Eastern country, as well as for all countries around the world in the process of developing solutions and strategies to mitigate the economic and social consequences of the coronavirus pandemic, as well as the possibility of many future crises, whether as a result of wars or the emergence of new viruses. This study makes a contribution to the formation of research frameworks that researchers from all over the world can use to search for solutions to reduce the effects of the coronavirus pandemic on the global economy as well as the spread of poverty and unemployment as a direct result of the pandemic. This research, which is also a scientific supplement, is intended for companies in all nations throughout the world in order to assist in mitigating the consequences of the coronavirus pandemic.

Patient education information material assessment criteria: A scoping review.

Patient education information material (PEIM) is an essential component of patient education programs in increasing patients' ability to cope with their diseases. Therefore, it is essential to consider the criteria that will be used to prepare and evaluate these resources. This paper aims to identify these criteria and recognize the tools or methods used to evaluate them. National and international databases and indexing banks, including PubMed, Scopus, Web of Science, ProQuest, the Cochrane Library, Magiran, SID and ISC, were searched for this review. Original or review articles, theses, short surveys, and conference papers published between January 1990 and June 2022 were included. Overall, 4688 documents were retrieved, of which 298 documents met the inclusion criteria. The criteria were grouped into 24 overarching criteria. The most frequently used criteria were readability, quality, suitability, comprehensibility and understandability. This review has provided empirical evidence to identify criteria, tools, techniques or methods for developing or evaluating a PEIM. The authors suggest that developing a comprehensive tool based on these findings is critical for evaluating the overall efficiency of PEIM using effective criteria.

Effect of Capital Adequacy Requirement on Profitability of Selected Banks Listed on Ghana Stock Exchange

The study assessed the effect of capital adequacy requirement on profitability of the Ghana Stock Exchange banks between 2013 and 2018. The analyses were based on the Ghana Stock Exchange secondary statistics. The analyzes specifically assessed trends in the capital adequacy ratios and Ghana Stock Exchange profitability of banks and determine the effect of capital Adequacy Ratio on profitability of listed banks. The study found that the banks' average Capital Adequacy Ratio was (Mean=17.21%) in the time. While the mean Return on Equity (Mean=25.46%) and the mean Return on Asset was found to be (Mean=3.05%). While the profitability was adverse and insignificantly affected by the Capital Adequacy Ratio, they were adverse and small in terms of the Return on Equity, while Capital Adequacy Ratio had a positive and important impact on the Return on Equity. Bank size did not have a major effect on Return on Equity and Return on Asset. For local banks, the mean Capital Adequacy Ratio for international banks was approximately the same. Therefore, the study suggested that businesses continue to operate, if not, to guarantee banks are able to cope with any 'credit crunch' economic recession. Banks can ensure that surplus capital is transformed into investment to maximize investment returns.

Getting to yes: The role of creditor coordination in debt restructuring negotiations

How do indebted governments restructure their debts with private creditors? What explains variation in indebted states’ negotiating behavior? Existing explanations of debt restructuring have largely treated creditors as a profit-maximizing monolith; Yet creditors have different exposures, ties to borrowers, and roles in the international banking system. Inter-creditor disputes are common. In this paper, I argue that because institutional norms dictate burden sharing, the makeup of the creditor group matters for indebted states’ negotiating behavior. The requirement of near-consensus decision-making allows almost any creditor to hold up negotiations. It limits the outcome to what the most reluctant creditors will agree to. Debtor governments are aware of compositional issues and where coordination is most difficult ex-ante, they can use more coercive behaviors to bring reluctant creditors into the fold. I focus on publicly issued declarations of default as one such tool. Using existing data on public moratoriums alongside original data on creditor composition, I find that governments are more likely to publicly announce default as the number of creditors involved in a restructuring increases. The findings imply that who the government is bargaining against matters to how they choose to bargain.

Metadiscourse Features in Risk Management Reports by Local and International Banks in Malaysia

Metadiscourse Features in Risk Management Reports by Local and International Banks in Malaysia

An empirical comparison of profitability performance from the viewpoints of public, private, and international banks

An empirical comparison of profitability performance from the viewpoints of public, private, and international banks