Banking Issues Research Articles

La teoría de la banca y la falacia de la innovación disruptiva en los servicios financieros

Hacer banca es un ejercicio de confianza entre partes, en el que una de ellas - el cliente - confiesa a la otra cuánto vale, esperando que guarde esa información para su exclusiva orientación en el desarrollo de la relación de negocio. La cuestión nuclear es la de si para implementar una estrategia (sea cual sea) ella debe o no ser apoyada en una determinada cultura organizacional (sea cual sea). La banca tradicional aparentó creer poco en la estrategia, utilizando el término y algunas prácticas relacionadas para gestionar en el cortoplacismo de las sucesivas coyunturas. Considerando que la excelencia no se reduce a la mera caracterización de la innovación tecnológica o de procesos, el producto / servicio de excelencia presupone el diseño, el desarrollo y la supervisión siempre y sólo en la perspectiva del usuario / beneficiario / cliente finales identificados y seleccionados.

Symposium on “Contemporary Central Banking and Monetary Policy Issues”: Editor’s Note

Central banks as public institutions, and, more generally, the role of monetary policy as a powerful instrument of macroeconomic policy, have both been somewhat downgraded in the public eye since t...

THE ROLE OF BANKS IN NATIONAL INNOVATION SYSTEM: GENERAL STRATEGICAL ANALYTICS

In this paper the role of the banking system in the processes of innovation system as a new direction of banking strategy is considered. Innovation ways of increasing the role of banks and minimize the risks of innovation by integrating with an innovation infrastructure is offered. Analysis of the mechanisms to support innovation by banks in India, Great Britain, Norway was conducted.The purpose of this research is to consider the main points of banking strategy development within the innovation system. Methods of current research are institutional and evolutionary approach, methods of strategical development of innovation systems and the ways of innovation development ways selection, which used for the bank’s innovation strategy development.According to analysis of the main issues of innovation banks we propose to consider the strategy of innovation investment cycle. The main points of banks innovation strategy were considered. While forming the intellectuals’ property and innovation projects portfolio banks the authors have proposed to consider peculiarities of the innovations marketing. Implementation of agreements and cooperation between bank and innovation infrastructure element will create mechanisms for information exchange, constant interaction with the participants providing and accompanied by innovation projects implementation, and for ensuring of consistent communications to support the development of specialized institutions.Analysis of financing innovation models allows to conclude that for Ukraine the corporate-state system, in which various government agencies responsible for conducting scientific and technological policies play a crucial role, is the most appropriate. Identified features of the bank’s strategy can be used in the activities of innovation system and innovation structures development.

Models of credit limit-setting for companies as means of encouraging competitiveness

Monetary policy deals with a number of issues including improvement of the national business competitiveness, increasing the volume of internal credits, ensuring stability and sufficient reinvestments into the real sector of the economy. On the one hand, banks issue credits relying on the index of competitiveness. On the other hand, banks should encourage the growth of the organization’s competitiveness. These tasks are interconnected, but the latter one is hardly considered by researchers. Administration of companies’ competitiveness is a set of financial methods aimed at modifying the activity of regulatory institutions so that they can help companies achieve the required financial criteria. In order to solve the trilemma of competitiveness, monetary policy and credit limit-setting for a group of companies, robust management is necessary. Currently, banks have sufficient liquidity but prefer low credit exposure. Such an approach is conditioned by the recent financial shocks, dissatisfaction and disappointment with the existing methodology, which has not protected banks from risks. It leads to the necessity for banks to introduce credit limits for each company. The authors suggest a model of adjustment of competitiveness drivers for the real sector of the economy and ways to determine credit limits in order to support competitiveness.

THE HISTORY OF FINANCIAL SYSTEMS AND MONETARY CIRCULATION IN EUROPE IN THE ERA OF THE GREAT FRENCH REVOLUTION AND THE NAPOLEONIC WARS (LATE XVIIITH – EARLY XIXTH CENTURY)

The article is devoted to the consideration of the financial policies of France, Britain, Austria and Russia in the late XVIIIth and early XIXth century in connection with the release a significant amount of paper currency (bank notes) into circulation in the era of the Great French Revolution and the Napoleonic Wars. The article focuses on the monetary policy conducted by the government of Alexander I.The adoption of bank notes almost everywhere in Europe led to a change in their function. In addition to covering extraordinary military expenses, the paper currency had a new function – they were used as an instrument of financial policy and state regulation of the national monetary system. Mass issue of bank notes led to their depreciation. Although stabilization of currency circulation had some differences in the abovementioned countries, it was mostly based on the withdrawal of bank notes from circulation. The Russian Empire believed it was preferable to use the experience of the Habsburg Monarchy. The strategy of the Austrian government was devoted to complete withdrawal of one part of the bank notes and replacement of the other one with private bank notes in form and status, however state participation was preserved in the capital of the Privileged Austrian National Bank.

Dampak Kebijakan BI Rate Repo 7 Days terhadap Kinerja Bank Pemerintah

The policy to overcome the inflation lane is usually the central bank uses an interest rate policy called the BI Rate, but the BI Rate policy is deemed ineffective for banks because it requires a long time to a year, so the central bank issues a 7-day BI Rate Repo with the aim to effective in carrying out financial system policies. The purpose of this writing is first; to determine the influence of BI Rate Repo policy on Capital Ratios and Profitability ratios of Government banks, second; to see if there are significant differences in capital performance and profitability of government banks due to the 7 Days BI Rate repo policy. The research results obtained that the BI Rate has a negative significant relationship to the capital ratio (CAR) while the profitability ratio (ROE) has a positive significant relationship; The BI Rate affects the Capital Ratio (CAR) of 27.6% while the Profitability Ratio is 17.2%; The Capital Ratio Rate (CAR) has a significant difference between before the BI Rate Repo policy and after the policy which has increased from 18.65 to 20.42; The profitability ratio (ROE) has a significant difference between before the BI Rate Repo policy and after the policy, which decreased from 20.24 to 16.59.

Dampak Kebijakan BI Rate Repo 7 Days terhadap Kinerja Bank Pemerintah

T he policy to overcome the inflation lane is usually the central bank uses an interest rate policy called the BI Rate, but the BI Rate policy is deemed ineffective for banks because it requires a long time to a year, so the central bank issues a 7-day BI Rate Repo with the aim to effective in carrying out financial system policies. The purpose of this writing is first; to determine the influence of BI Rate Repo policy on Capital Ratios and Profitability ratios of Government banks, second; to see if there are significant differences in capital performance and profitability of government banks due to the 7 Days BI Rate repo policy. The research results obtained that the BI Rate has a negative significant relationship to the capital ratio (CAR) while the profitability ratio (ROE) has a positive significant relationship; The BI Rate affects the Capital Ratio (CAR) of 27.6% while the Profitability Ratio is 17.2%; The Capital Ratio Rate (CAR) has a significant difference between before the BI Rate Repo policy and after the policy which has increased from 18.65 to 20.42; The profitability ratio (ROE) has a significant difference between before the BI Rate Repo policy and after the policy, which decreased from 20.24 to 16.59 .

Heterogeneous Elasticities of Bank Loan Supply: Evidence from SBA Loan Guarantee Expansion

US Small Business Administration (SBA) temporarily expanded its loan subsidy program from 2009 to 2010 in an effort to stimulate loans to small businesses. We explore the heterogeneous bank responses following this policy change. Using a novel data that merges the quarterly bank-level call report to the subsidized loan data, we first show that big banks prefer to issue many loans of small size while small banks issue few loans of bigger size.Abstract which can be explained through a simple portfolio optimization model with fixed cost. Then, we show that small banks — especially those that were part of SBA's Preferred Lender Program — increased both the extensive (number of loans) and the intensive (average loan size) margin the most. Then, we show that these big banks that make up the majority of the loan volume were particularly inelastic in increasing loan supply in response to this positive policy shock. This has strong policy implications given that a sizable amount of taxpayer's money was used to fund this temporary expansion.

МОДЕЛЬ ОЦЕНКИ БАНКОВСКОГО КРЕДИТНОГО РИСКА ПРИ ОТСУТСТВИИ ЗАЛОГА

Цель: статья посвящена вопросам разработки модели кредитного риска коммерческого банка при решении задач управления активами и привлечения новых активов. Обсуждение: в предположении, что банк выдает кредит в отсутствии у физического лица обеспечения в виде залога, постановка задачи сводится к оценке кредитного риска как вероятности неполучения ожидаемого результата. Для различных законов распределения вероятности определены расчетные формулы вычисления уровня риска при различной кредитной политике. Результаты: автором получено общее решение задачи оценки величины риска коммерческого банка при выдаче кредита физическому лицу в отсутствии залога на основе применения подхода вероятностного моделирования. Полученные результаты распространены на различные варианты кредитной политики банков, основанной на различной степени оценки рисков.

PATRONAGE OF ISLAMIC AND CONVENTIONAL BANKS: THE CASE OF SYRIA

The aim of this study is to understand perception of conventional banks’ customers towards Islamic banking by examining their level of awareness about Islamic banking. The qualitative approach was used in the form of semi-structured interviews under the phenomenological approach in Damascus city. The main findings of this research are customers lack awareness of Islamic banking operations. Furthermore, Islamic banks’ stuff play a crucial rule to enhance awareness and willingness towards their services. This study revealed that an informative advertising campaign is highly recommended to raise the awareness level among Syrians towards Islamic banking. Moreover, Islamic banks should be more selective especially when they recruit customer service operation staff. This research is a pioneering attempt towards Islamic banking issues in the case of Syria from a customer perspective. It contributes to the Syrian perceptions towards Islamic banking literature.

English

The study examined the optimal level of capital inflows for manufacturing exports and economic growth in Nigeria. Annual data from 1981-2017 on foreign direct investment (FDI), foreign portfolio investment (FPI), cross border borrowing CBB (components of capital inflows), financial sector development (FSD), real gross domestic product (RGDP) and manufacturing exports (MEX) were sourced from various issues of the Central Bank of Nigeria (CBN) Statistical Bulletin while data on gross capital formation (GCF) and human capital (HC) were sourced from World Bank Development Indicator (WDI) database. Data collected were analyzed using threshold regression econometric techniques. The results from the optimal level showed that capital inflows (CINF) threshold value of (25.55%) with coefficient of (9.94) annually is the optimal point of capital inflows for Nigeria and the threshold point for manufacturing exports indicates no capital inflows (CINF) threshold value for manufacturing exports in Nigeria. This study concludes that the optimal point of capital inflows for economic growth is 25.55%; any threshold level above this sustainable level, economic growth will be affected negatively in Nigeria but no capital inflows threshold point exist for manufacturing exports and therefore recommends that excessive capital inflows should be avoided in the country so that it does not make administration and management of monetary policy difficult, while the needed capital inflows should be well monitored and channeled into sectors (like manufacturing, agriculture, mining and quarrying etc...) that have absorptive capacity for them. Key words: Capital, inflows, export, growth, optimal, threshold.

THE CORPORATE GOVERNANCE REFORMS OF THE STATE-OWNED BANKS OF UKRAINE

The main purpose of the article is to analyze the reforming process of the corporate governance of state banks in Ukraine. The research is based on the review of existing theories, statistical data and official documents. The article discloses information on financial results and provides the main activity indicators of state banks of Ukraine. It is considered the main risks of Ukrainian banking system stability, among which are the high level of the state share and the presence of poor-quality assets in the state-owned banks of Ukraine. The features of existing corporate governance of state-owned banks in Ukraine were investigated. The results of comparing the international principles of corporate governance in banks with domestic practice have made it possible to highlight the main issues of Ukrainian state banks. It has been shown that the corporate governance system in Ukrainian state banks did not correspond to the best international practices, owning to the fact that legislation determined the status, powers, composition and work principles of the board of directors locally. The consequences of the low level of corporate governance (insider lending for business of individual politicians and their associated individuals, state-owned enterprises with a low level of creditworthiness) were considered. The new approaches for corporate governance in state-owned banks, which were focus on revision of the principles and mechanism of corporate management of state-owned banks and have to change the business and operating models of state banks in order to achieve the highest efficiency of their activities, were considered. The article shows the positive aspects of reforms, as well as possible risks. The findings are useful for practitioners and researchers to gain knowledge of the implementation of corporate governance reforms in state-owned banks.

Stock Market and Economic Growth: An Empirical Analysis for Nigeria

The study examines the effect of stock market on economic growth in Nigeria from 1986-2013. The objective of the study is to evaluate the extent to which some selected stock market indicators affect economic growth in Nigeria using secondary data obtained from various issues of Central Bank of Nigeria (CBN) Statistical Bulletin, World Development Indicators (WDI), and Nigeria Stock Exchange Fact-book. Preliminary study was done using unit root test, Co-integration tests and granger causality test. Ordinary Least Square (OLS) technique was used for the analyses to test the hypothesis. The findings revealed strong positive correlation with market capitalization, all share index and economic growth while turnover ratio has weak correlation with economic growth. The study recommends that this sends signal to government and decision makers who will look for growth opportunities. Also more stock liberalization are required such that would boost investors confidence by enable them have access to well regulated financial market which would provide surest path to economic development.

CONSUMERS’ PARSIMONY OF MOBILE INTERNET BANKING USAGE IN MALAYSIA

Purpose of the Study: The objective of this study is to empirically investigate the determinants of the adoption of mobile Internet Banking in Malaysia. However, the slow growth of mobile Internet banking usage as comparison to online Internet Banking increases the concern on the adoption and parsimony issues of mobile Internet banking (MI-Banking) usage in managing personal finances and banking activities.
 Methodology: Self-administered survey was applied and analyzed by using V-Base structural equation modeling. The responses of 358 respondents were analyzed by using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) technique.
 Results: The findings of this study revealed that perceived ease of use, perceived usefulness, and perceived risk significantly influenced the adoption of mobile internet banking, while perceived ease of use was found to have the greatest influence on the overall adoption of mobile internet banking. At the same token, perceived ease of use was found to have a significant influence on perceived usefulness.
 Implications: The application of mobile internet services has increased and mobile phones are becoming significant tools for managing and controlling personal finances and spending. Thus, a study was conducted to seek clarification on the predictors of mobile Internet banking adoption among Malaysians that will embark further and deeper studies in the context of mobile Internet Banking.

Equivalence between multirate filter bank and circular lattice filter and its application in statistically matched multirate filter bank

In this paper we address the issue of finding multirate filter bank matched to a given signal. The salient contributions, of this paper can be summarized as follows: (i) a precise mathematical equivalence, between M-channel circular lattice filter and M-band multirate filter bank, is established; (ii) the concept of signal matched analysis filter bank is defined. Also a precise mathematical formulation is presented which makes it possible to regard the signal matched analysis filter bank as single input multiple output prediction error system or as a whitening filter bank; (iii) it is observed that the problem of finding signal matched analysis bank is mathematically same as vector AR modeling and whitening problem; (iv) with the observation (iii) and the equivalence result of (i) at our disposal, we address the problem of finding signal matched analysis side multirate filter bank. (v) The concept of signal matched synthesis bank is defined. Also a precise mathematical formulation is presented for finding the parameters of the filter bank. We also present simulation results to validate the theory.

Determinant of Islamic Banking Profitability in Indonesia

Finding a determinant of profitability has become one of the most popular topics in banking research. Previous research has identified many factors that significantly influence bank profitability. There are also many studies that measure the effectiveness of sharia banking globally, but few analyze the profitability issues of sharia banks. This study aims to analyze the impact of factors affecting profitability in Islamic Banks listed on the Indonesia Stock Exchange. The method used is multiple linear regression analysis. The variables are return on assets as dependent variable and murabahah, musyarakah, mudharabah, branch office, cash office, and Automatic Teller Machine as independent variable. This study found that funding factors such as murabaha, musharaka and conventional and electronic networking factors such as Branch Office, Cash Office, and ATM had positive and significant impact on profitablity of Sharia Bank, while mudharabah had a negative and significant influence on profitablitas Sharia Bank. Sub-Branch Offices also had a negative but insignificant effect on the profitability of Sharia Banks. This result indicated that income on management became the most dominant income in generating profit of sharia banking. However, the management of funds could not work if not supported by Islamic banking channeling tools.

Determinant of Islamic Banking Profitability In Indonesia

Finding a determinant of profitability has become one of the most popular topics in banking research. Previous research has identified many factors that significantly influence bank profitability. There are also many studies that measure the effectiveness of sharia banking globally, but few analyze the profitability issues of sharia banks. This study aims to analyze the impact of factors affecting profitability in Islamic Banks listed on the Indonesia Stock Exchange. The method used is multiple linear regression analysis. The variables are return on assets as dependent variable and murabahah, musyarakah, mudharabah, branch office, cash office, and Automatic Teller Machine as independent variable. This study found that funding factors such as murabaha, musharaka and conventional and electronic networking factors such as Branch Office, Cash Office, and ATM had positive and significant impact on profitablity of Sharia Bank, while mudharabah had a negative and significant influence on profitablitas Sharia Bank. Sub-Branch Offices also had a negative but insignificant effect on the profitability of Sharia Banks. This result indicated that income on management became the most dominant income in generating profit of sharia banking. However, the management of funds could not work if not supported by Islamic banking channeling tools.

Electronic remote blood issue supports efficient and timely supply of blood and cost reduction: evidence from five hospitals at different stages of implementation.

This multicenter international study evaluated electronic remote blood issue (ERBI) for blood unit collection in hospitals. Retrospective data were collected from the ERBI software databases and blood bank information systems. Prospective "time-and-motion" data collection methods simulated the delivery of red blood cell units to determine the staff time for each step. The main benefit of ERBI was found in two hospitals where the blood unit was issued and collected at refrigerators remote from the blood bank (closer to the clinical area) compared with the standard process of blood bank issue (BBI) and blood unit collection in the blood bank. There was a reduction in the time for blood to reach patients (2.02 min compared to 8.43 min at one site [p ≤ 0.0001], 1.57 min compared to 6.54 min at the other [p ≤ 0.0001]). However, there was no reduction in time where ERBI was conducted in the blood bank or where a blood unit issued by the standard BBI was collected at remote refrigerators. In the three hospitals where ERBI was conducted at remote refrigerators, there was an improved issue:transfusion ratio (range of 1.02-1.09 for ERBI compared to 1.48-1.58 for BBI) and a reduction in staff time and costs of between $5,000 and $10,000/year. This multicenter international study builds on findings from studies in single hospitals that ERBI at remote refrigerators improves the efficiency of transfusion by reducing the time taken for blood units to reach patients, staff time, and costs.

Effect of Financial Sector Reforms on Economic Growth in Nigeria

The study examines the effect of financial (banking) sector reforms on economic growth in Nigeria from 1986-2013. Specifically, the study evaluates the extent to which bank capitalization (CAP) and interest rate (INTD) have affected economic growth in Nigeria. Secondary data were generated from various issues of Central Bank of Nigeria Statistical Bulletin, and the World Development Indicators of the World Bank. Ordinary Least Square (OLS) regression was adopted to test the two hypotheses formulated for the study. The study revealed that bank capitalization (CAP) has significantly affected economic growth in Nigeria and interest rate (INTD) has also affected economic growth significantly, though at long run. The study recommends that the CBN should build and maintain a well-articulated and properly implemented banking reforms such that will stimulate savings through high real deposit rate and lending rate which will result in financial deepening and thus, economic growth.

Examining service innovation competencies of Turkish deposit banks with fuzzy ANP, fuzzy TOPSIS and fuzzy VIKOR methods

It is aimed to rank the service innovation issues of deposit banks in Turkey. In this context, 26 deposit banks of Turkey are analyzed by considering 16 different balanced scorecard-based criteria. Regarding the methodology, first of all, fuzzy ANP method is used to measure the significance of dimensions and criteria. It is defined that the most significant dimension is performance. It is also seen that organizational compliance (D3) is on the last rank. Additionally, return on investment (C1), profitability (C2) and customer expectations (C5) have highest significance. These alternatives are ranked by considering fuzzy TOPSIS and fuzzy VIKOR methods. It is understood that the results of both these two methods are very similar. It is concluded that there is not a comparative advantage among the banks regarding the ownership type. For example, the best bank (F15) is a foreign bank whereas the worst bank (F13) is also another foreign bank. Similar to this situation, some private banks (P1, P7, P8) have successful performance while some others (P4, P5) have weak performance.