Investment Banks Research Articles

What explains the recovery speed of financial markets from banking crises?

Less is studied about the determinants of the impact of banking crises on the recovery speed of financial markets. In this paper, based on the members from Asian Infrastructure Investment Bank (AIIB), we measure the recovery speed of financial markets from banking crises by financial stress index (FSI). Then the Kaplan-Meier (K-M) survival analysis methodology is applied to depict the stylized features of the recovery speed of financial markets. Further, the Cox proportional hazards model is introduced to investigate the effect of a variety of influencing factors on the recovery speed of financial markets from banking crises. The results indicate that certain factors, such as stationary macroeconomic environment, sound government finance, stable exchange rate regime, moderately open financial market, global financial market with high panic prior to banking crises, and expansionary monetary policy with the price rule after banking crises, contribute to fast recovery of financial markets.

The Relationship Between Stock Performance and Money Supply Based on VAR Model in the Context of E-commerce

Abstract With the development of network technology, electronic money as a payment and settlement tool based on the network has been developing at an unprecedented speed. Based on the background of e-commerce, this study uses the data from June 2012 to June 2022 to establish a vector autoregressive model to study the interaction between oil prices, stock performance, and money supply. Such a model can not only further our understanding of the complex relationship between these important variables but also shed light on future oil prices. Granger causality test, impulse response function analysis, and variance decomposition analysis have been applied to variables in the model. The main finding is that oil price responds to changes in stock performance and money supply, stock performance is affected by both oil price and money supply, and changes in money supply can be explained by stock performance fluctuations. Such a relationship can help inform traders in e-commerce and investment banking to generate better predictions of future oil prices.

The emergence of financial capital in the health insurance business in Europe: The case of Spain in the last fifty years

Abstract Sickness insurance companies were developed in Spain by doctors and healthcare professionals, remaining outside the interests of general insurance companies. Their management was hardly professional, with limited actuarial techniques and they only accounted for a small percentage of total insurance business premiums. From the 1970s onwards, various factors changed this situation, driving processes of concentration, with numerous takeovers and mergers, first reducing the number of local and regional companies to the benefit of companies of national scope. Subsequently, the growth in demand for this type of coverage sparked the interest of national general insurance companies and multinationals, leading to a restructuring of the sector which has progressively acquired greater weight within the insurance business and become increasingly internationalised. This last stage immersed the health sector in Spain in the great processes of globalisation of the sector, characterised by a financialisation of capital promoted by the bank investment funds. These processes are little known and are the focus of analysis of this paper, with the aim of enabling comparison at international level.

Institutional pressure and analyst behavior: Evidence from the financial sector

AbstractThis study examines the impact of employment background on the objectivity of profitability forecasts in the financial sector. We find that investment bank analysts provide relatively biased recommendations and less accurate forecasts than their counterparts at independent research firms (IRFs). The performance discrepancy is greater for bulge bracket banks and for firms involved in syndication with the analysts' employers. A closer look at analysts transitioning between IRFs and investment banks reveals that these biases stem from their affiliation with investment banks rather than personal bias. Our findings emphasize the critical influence of the work environment on analyst behavior.

Banking and Investment in the Future: Unveiling Opportunities and Research Necessities for Long-Term Growth

The current era in the banking and investment sectors is marked by significant shifts propelled by new regulations, changing consumer preferences, and rapid advancements in technology. These forces are not only reshaping the operational landscape but are also setting the stage for future transformations. This paper delves into the heart of these changes, examining how the banking and investment arenas are adapting and what challenges they may encounter moving forward. It highlights the importance of research in identifying opportunities for growth and innovation within this dynamic environment. In particular, the advent of artificial intelligence (AI), the tightening of regulatory frameworks, and the emergence of public banking initiatives are creating new paradigms. Likewise, the integration of financial technology and digitalization is opening up unprecedented avenues for customer engagement and service delivery. However, these advancements also bring challenges, including managing the digital transition and addressing workforce needs in the face of automation and new competencies. This comprehensive analysis aims to equip investment banks and financial institutions with the insights necessary to navigate the evolving financial landscape successfully. By understanding the current state of the industry and anticipating future trends, these entities can strategically position themselves to leverage technological innovations, comply with regulatory demands, and meet the ever-changing preferences of their customers. Ultimately, this paper seeks to foster a dialogue that will lead to more informed decision-making and strategic planning, ensuring that the banking and investment sectors can continue to thrive in an increasingly complex and interconnected global economy.

Finansal Koşullar Endeksi ile Ekonomik Büyüme ve Net Sermaye Girişi Arasındaki İlişkinin İncelenmesi: Türkiye İçin Nedensellik Analizi

The global economic crisis, which had a devastating effect worldwide with the bankruptcy of Lehman Brother's investment bank in the United States of America in 2008, revealed that countries should indicate risks and take precautions accordingly. In this sense, the importance of the Financial Conditions Index (FCI), which was created by considering the monetary policy instruments of the country's central banks and various macroeconomic and financial variables as a whole, has also increased. FCI, the index that has taken place in the literature since the 1990s, with the growth of countries, has been investigated in empirical studies conducted after the global economic crisis. In this study, the related index is calculated using Principal Component Analysis (PCA), and the data generated is analyzed with growth and net capital inflow items. According to the results of the related analysis, while there is bidirectional causality between FCI and real gross domestic product (GDP) growth, one-way causality was found between FCI and net capital inflow. The index created accordingly is the Granger cause of the net capital inflow.

Research on Investment and Financing Strategies of State-owned Commercial Banks for Urban Commercial Projects

The development of modern trade and logistics industry can’t be separated from financial support. Financial empowerment of trade development can effectively realize the multi-flow unity of logistics, capital flow, information flow and business flow, and achieve a double win situation for all parties. According to the PEST analysis of the development environment of Linyi Mall, the Rizhao banking industry supports the transformation and development of Linyi Mall, and in terms of specific development strategies, it should focus on the whole industry chain of the Mall, financial technology development and empowerment, financial talent training, and the enhancement of the financial service model. Eligible projects, platforms, enterprise subjects for "real money" support, clear strategic direction of the transformation and upgrading of the Mall, to promote the high-quality development of commerce and logistics, to achieve co-prosperity with the development of Linyi Mall.

A mixed-integer linear programming approach for collateral management

Collateral management involves the efficient monitoring and allocation of assets to mitigate credit risk in financial transactions and is crucial for institutions such as commercial banks, investments banks, and central counterparties. It helps to ensure financial stability and compliance with regulatory requirements. This study is centered on a fundamental objective of collateral management, namely to collateralize as much as possible a set of transactions given a limited asset portfolio. In practice, an allocation is dynamic, necessitating periodic adjustments due to fluctuations over time in the asset pool, the transactions set, and asset value. Consequently, the objective is not merely the identification of an optimal allocation from zero but the optimization of an obsolete allocation in response to these fluctuations. The size and complexity of real-world problems often preclude direct resolution through conventional MILP solvers. In addition, each collateral adjustment movement incurs associated costs. In this research, a two-step method based on linear and mixed-integer linear programming formulations with ℓ1 penalties is devised, with the principal aim of minimizing under-allocation while simultaneously controlling the number of adjustment movements required. The method is tested on 20 real-world collateral givers and invariably reaches a good trade-off between solution quality, computational time, and the number of movements.

Accountability in pan-European borrowing: mind the gap

The European Union (EU) is now borrowing on the scale of a large state to address challenges ranging from COVID-19 to the war in Ukraine. However, there has been limited comparative research on how pan-European borrowers can and should be held to account. This article offers a normative justification for why such borrowing should be accountable before showing how accountability practices diverge from a set of accountability expectations derived from three baseline theories: liberal intergovernmentalism, sociological institutionalism and historical institutionalism. Through elite interviews and online archival analysis, we show that the vertical accountability of the European Bank for Reconstruction and Development, the European Investment Bank and the European Stability Mechanism to national parliaments in six EU member states varies. Our findings also show that horizontal accountability has been constrained by the European Parliament’s limited involvement in borrowing decisions until recently and that patchy interest from national auditors has undermined diagonal accountability. As EU borrowing increases in importance, these accountability gaps urgently need to be filled.

Introduction about world agricultural Bank

A type of bank that lends money to farmers for longer periods of time and charges them less interest than other types of banks. In the Paleolithic Levant, 23,000 years ago, cereals cultivation of emmer, barley, and oats has been observed near the sea of Galilee. Rice was domesticated in China between 11,500 and 6,200 BC with the earliest known cultivation from 5,700 BC, followed by mung, soy and azuki beans Agricultural Bank of China, also known as AgBank, is one of the "Big Four" banks in China. It was founded on 10 July 1951, and has its headquarters in Dongcheng District, Beijing. It has branches throughout mainland China, Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul, and Singapore. This study were examined relationship between BANK CREDITS and investment growth of agricultural in international sector.The results confirm the existence of a long-run relationship between variables in model. In addition, according to the results, bank credit is the most significant variable in explaining the GROWTH INVESTING, so that increases access to it will encourage growth investment of the agricultural sector. The first official agricultural finance institution of Iran was established in 1933.

The effect of IFRS adoption on bank internationalisation

AbstractBanking is one of the highly regulated industries, where a single set of global standards is likely to play a significant role in eliminating double reporting and reducing information asymmetry. Accordingly, we use data on 98 countries over 9 years to examine whether the use of International Financial Reporting Standard (IFRS) drives bank internationalisation. The results show that the use of IFRS is positively and significantly associated with an increase in foreign investment in the banking sector by easing regulatory compliance. However, in developing countries, the benefit of IFRS increasing foreign investment banks is associated with both easing regulatory compliance and reducing information asymmetry between banks and their clients. Our results are consistent across different sub‐samplings, including EU versus non‐EU, high versus low absence, and divergence between domestic standard and IFRS. These results provide reassurance and clear evidence of how IFRS facilitates the global flow of capital, even in a highly regulated industry such as banks. The results are robust to alternative measurements of variables and endogeneity tests using the Two‐Stage Least Square, Two‐step System Generalised Method of Moments and Propensity Score Matching.

Beyond Bootstrapping a Comprehensive Analysis of Entrepreneurial Finance Strategies in the Contemporary Business Landscape

The intricate landscape of entrepreneurial finance, extending its focus beyond traditional bootstrapping methods. In an era characterized by diverse funding options, this study conducts a comprehensive analysis of the myriad strategies employed by entrepreneurs to finance their business ideas. The investigation encompasses an examination of established methods such as angel investment, venture capital, crowd funding, and traditional bank loans, as well as emerging trends in decentralized finance (DeFi) and other innovative financial models. The research adopts a multifaceted approach, considering regional variations, regulatory influences, and cultural dynamics shaping entrepreneurs' financing choices. Through extensive data collection and analysis, the study aims to discern the nuanced factors influencing the selection of specific financing avenues by entrepreneurs operating in various sectors and geographical locations. Furthermore, the research assesses the long-term implications of different financing strategies on business performance, sustainability, and growth. By exploring success factors in crowd funding campaigns, the study contributes valuable insights into the dynamics of contemporary entrepreneurial finance, shedding light on the role of marketing, pitch quality, and social engagement in funding success. In addition to quantitative analysis, the research delves into qualitative aspects, investigating psychological factors that play a role in entrepreneurial decision-making. The study aims to uncover the intricate interplay of risk tolerance, overconfidence, and decision biases in the financing choices made by entrepreneurs. As technological innovation continues to reshape the entrepreneurial landscape, this research explores the impact of emerging technologies, including blockchain and decentralized finance, on funding models. By examining the opportunities and challenges presented by these innovations, the study provides a forward-looking perspective on the evolving nature of entrepreneurial finance. "Beyond Bootstrapping" strives to offer a holistic understanding of entrepreneurial finance in the contemporary business environment, providing stakeholders, policymakers, and entrepreneurs themselves with valuable insights into the diverse strategies shaping the financial foundation of innovative ventures.

AIIB Investment and Economic Development of India: The Case of the Gujarat Road Project

The purpose of this study is to verify whether the transportation infrastructure investment carried out by the Asian Infrastructure Investment Bank (AIIB) has promoted the economic development of its recipient countries. Since the establishment of the AIIB, its investments in infrastructure development, aimed at promoting economic growth in Asian developing countries, have garnered considerable attention. This study selects India, the largest recipient country of the AIIB, as the research object and chooses the Gujarat Road Project as the research case, since it is a completed infrastructure construction investment project in the transportation field. This paper provides an overview of the project’s operation and summarizes key factors in the project’s implementation. In the data analysis section, the per capita GDP is selected as the explained variable to measure economic development, and the LASSO regression method is used to select several variables that affect economic development. Moreover, the random forest model is used to obtain the causal relationship between road construction and the per capita GDP from 2001 to 2022. The results indicate that road construction in India has a significant positive effect on per capita GDP growth, the Gujarat Road Project supported by the AIIB also has a positive effect on per capita GDP growth, and this effect is stronger than that at the national level. The main contribution of this work is the validation of the investment strategy of the AIIB and the quantification of the economic contribution of AIIB investment projects to the local area.

ЕМПІРИЧНИЙ АНАЛІЗ ДІЯЛЬНОСТІ “ЗЕЛЕНИХ” ПІДПРИЄМСТВ І ПЕРСПЕКТИВИ РОЗВИТКУ ВІДНОВЛЮВАНОЇ ЕНЕРГЕТИКИ В УКРАЇНІ

Purpose. This paper comprehensively analyzes the performance of five prominent Ukrainian green enterprises spanning the period from 2016 to 2020. Specifically, it focuses on PJSC Myronivskyi Hliboprodukt and NJSC Naftogaz, recognized as top contributors to green technologies in Ukraine, and delves into the green metallurgy advancements of PJSC Interpipe Steel, PJSC Energomash-spetsstal, and PJSC Dniprospetsstal. The study not only evaluates their achievements but also formulates strategic recommendations, outlining a potential developmental roadmap for fostering positive transformations within the Ukrainian green economy. Design/Methodology/Approach. The problem of establishing an effective financial mechanism in Ukraine, aimed at the development of the green economy through green investment, and, therefore, the search for sources of funding for green business, is currently open for discussion. The study of the financial statements of five green enterprises in Ukraine as well as the currently existing approaches to solving the above-mentioned problems made it possible to determine the sources of financing the green economy, which embrace the state budget (through targeted state and regional investments), foreign (international) investments, commercial funds (funds of off-budget investment, environmental and other funds), own funds (funds of enterprises and organizations creating market infrastructure - environmental investment banks, natural resource exchanges, consulting agencies). Findings. Both social and economic benefits of the development of renewable energy sources are undeniable. However, no sector of the economy will be able to develop sustainably without appropriate state incentives and an attractive business climate in the country. Under current conditions, the Government of Ukraine faces the task of preserving those national and international investors in RES who have already invested in the economy of Ukraine, providing conditions for their further business activity in the post-war period. The financial mechanism for the formation of a green economy can function effectively if one understands the factors of a green financial system, which rely on environmentally determined transformations of the modern investment environment. These include:a) transformation of investors’ assessments of environmental investment results; b) growing needs for intermediary services of the financial sector as a result of the development of market mechanisms forensuring sustainable development (carbon markets, green technologies among others); c) representa-tiveness of market assessments of ecologically safe production; investment attractiveness of various financial instruments, peculiarities of their pricing. Practical implications. The results obtained during the analysis of the profitability indicators of the mentioned enterprises made it possible to set recommendations for the potential developmental vector for changes in the green economy in the Ukrainian market. The prospects for the development of renewable energy sources in Ukraine have been analyzed to prove that starting from 2019, investments in new renewable energy projects in Ukraine have been consistently higher than those in fossil fuel projects. Originality/Value. The paper not only contributes valuable data on sustainable practices of Ukrainian green enterprises but also formulates recommendations, outlining a potential developmental trajectory for advancing the green economy within the Ukrainian market. This dual focus on analysis and strategic recommendations enhances the originality and practical value of the paper.

European funding for research in EV battery materials

The European Investment Bank (EIB) is committed to supporting innovative European manufacturing in strategic net-zero technologies.

CUSTOMERS’ OPINION TOWARDS CSR OF PUBLIC AND PRIVATE SECTOR BANKS IN TIRUNELVELI- A COMPARATIVE STUDY

Banking system plays an important role in the economic development of the country. Today, banks have diversified their activities and are getting into new products and services that include opportunities in credit cards, consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation, stock broking services, etc. All private and public sector banks are keenly concentrated in fulfilling the need of doing CSR and disclosure practices regularly. The level of its impact on customers shall be measured by using some techniques. In the present study the researcher has concentrated on the view and perception of customers and their attitude towards the achievement of CSR of banking sector particularly in the study area and analysed by using statistical tools like percentage analysis, Chi-square test, two independent sample t-test etc.

Collaborative supply chain finance based on transaction cost theory: a multiple case study in the POF scenario

ABSTRACT In traditional supply chains, downstream distributors of core companies often face significant cash pressure and market uncertainty. In this case, purchase order finance (POF), as an important form of supply chain finance (SCF), plays a vital role in addressing these challenges by providing loan support to financially constrained companies during the ordering stage. To gain more empirical insights into SFC in the POF scenario, this study conducts an in-depth case analysis of the collaborative POF services between three banks and one Chinese core manufacturing enterprise. Based on the results, we identified the collaborative details (goal congruence, information sharing, resource sharing, and synchronised decision-making) and the impacts of the digital investment of banks. The main conclusions of this study have certain reference values for banks in establishing digital capabilities and for core companies in making SCF-related decisions.

The role of responsibility accounting in activating corporate governance - an analytical study of the opinions of a sample of employees of some private banks listed on the Iraq Stock Exchange

The study aims to ascertain the significance of responsibility accounting in activating corporate governance in some private banks listed on the Iraq Stock Exchange (Ashur Investment Bank, Zain Iraq Islamic Bank, Asia Iraq Islamic Bank, Sumer Commercial Bank, Nour Iraq Islamic Bank). The approach was used (Descriptive-analytical) to analyze the nature of the relationship between the variables of the study. The questionnaire was used as a main tool for collecting data. (280) questionnaires were distributed to a random sample of (auditors working in the control and internal audit departments) in some private banks listed on the Iraqi Stock Exchange. The number of questionnaires retrieved was (272), of which (256) were valid for statistical analysis. The researcher employed many statistical tools and methodologies, including the arithmetic mean, standard deviation, correlation coefficient, and basic regression approach, to analyse the practical element of the study. The data was analysed using complex statistical software programmes, namely AMOS.V (.24), SPSS v.26, and Excel (2007). Theoretical findings indicate the presence of a knowledge gap about the function of responsibility accounting in promoting corporate governance, both in a general context and specifically within certain private banks listed on the Iraqi Stock Exchange. The study's practical findings indicate a moral correlation and a moral impact association between responsibility accounting and its dimensions, and corporate governance. The survey yielded several conclusions indicating a strong interest and enthusiasm among staff of certain private banks in prioritising corporate governance.

ПАРАДИГМА ЦИФРОВОЇ ТРАНСФОРМАЦІЇ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВА

The article is devoted to the actual problem of substantiation of scientific and methodological provisions and development of practical recommendations on the paradigm of digital transformation of business processes of enterprises. It is determined that for successful operation in the market, enterprises must develop a business model to create value for customers and make a profit by the company. Five main areas covered by digital transformation are revealed: business model transformation, automation and optimization of business processes, innovation in digital products and services, empowerment and employee engagement, and customer interaction. The definition of "digital transformation" is given as the integration of digital technologies into all business areas, which radically changes the principles of enterprise operation and providing value to customers. The advantages that enterprises that make the transition to the digital transformation paradigm receive are revealed: a better understanding of market trends; expanding markets and sales channels; ensuring compliance with customer expectations and meeting their needs; increasing customer loyalty; expanding opportunities to reduce costs and increase profitability. The stages of forming a digital transformation strategy are substantiated, which consist in the following: defining the mission and strategic vision; auditing the existing business strategy; reviewing business processes to add value to the product using digital technologies; defining your own priority projects; developing a system of necessary competencies; outsourcing of functions to partners or external organizations; identification of key indicators of the organization's development and measures to implement the strategy; optimization of the management process and formation of Digital Culture; selection of the most effective digital technology. Companies that have successfully applied digital technologies to transform their business in various fields of activity are represented: Walmart in retail, Mayo Clinic – medical services, investment bank Goldman Sach, travel and hotel company Airbnb, car manufacturer Toyota.

The Impact of FinTech on Retail Banking: Empirical Evidence from Bank for Investment and Development of Vietnam

This paper is aimed at (i) synthesizing the impacts of FinTech on retail banking; (ii) analyzing the Vietnam FinTech and retail banking sector (iii) assessing the impacts of FinTech on retail banking of Bank for Investment and Development of Vietnam (BIDV) – the biggest bank in Vietnam in term of asset with strong digital transformation and retail banking orientation. Using secondary data and internal information of BIDV, key findings are: First, the impacts of FinTech on retail banking are mixed. FinTech's growth has promoted banking services by enhancing the flexibility and usability of financial services with lower costs and more efficient risk management. FinTech also brought various negative impacts on retail banking such as being the direct competitor in some retail market segments, cybercrime, and strategic and credit risks to banks. However, the positive impacts surpass the negative impacts. Second, Vietnam's FinTech ecosystem and retail banking sector have been significantly developed and still have much potential. Both banks and FinTechs in Vietnam realize the win-win approach in cooperation, but banks still recognize the challenges of FinTech in their retail banking operations. Third, at BIDV, the impacts of FinTech on retail banking are significantly positive, resulting from motivation to strengthen digital transformation, to utilize technologies and collaboration for higher quality services. FinTech helps BIDV to increase customers and transaction volumes, diversify products with innovative solutions and better service quality, safe transactions with cost savings. No negative impacts of FinTech on retail banking have been found at BIDV yet. Fourth, BIDV, State Bank of Vietnam (SBV) and other stakeholders should implement some solutions for better FinTech utilization in improving retail banking services and to mitigate the negative impacts in the future. Keywords: digital transformation, FinTech, financial innovation, financial services, retail banking.