Main Bank Research Articles

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

PurposeWith the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance.Design/methodology/approachA survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3.FindingsThe study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant.Research limitations/implicationsIt is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment.Originality/valuePrior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

Green banking frameworks in Asia with an in-depth focus on Bangladesh and China

Green banking frameworks encourage banks to manage their in-house operations and lend and invest in an environmentally sustainable manner. There are at present six nations in Asia that have a green banking framework – Bangladesh, Cambodia, China, Indonesia, Mongolia and Vietnam. Each of the six countries have distinctive green banking policies and frameworks suited to their own national agendas. This article aims to provide a summary of the main green banking frameworks issued by each country's respective regulatory authority or banking association and possible reasons why these six countries have established such a framework. It then focuses specifically on the framework and banking policies practiced in Bangladesh and China, given their experience and strong establishments. The effects of introducing green banking frameworks and policies in Bangladesh and China are also accessed. The article then concludes with recommendations on what more can be done to enhance green banking in Bangladesh and China.

Profitability, capital, and risk in US commercial and savings banks: Re-examination of estimation methods

This study compares the relationships between the three main bank variables i.e., profitability, capital, and risk of US commercial and savings banks for the period 1995Q1-2015Q4. As the literature analyzes the relationship between these variables in pairs, thus suffering from an 'omitted variable bias' and a 'simultaneous equations bias', we examine whether these biases are statistically significant. We compare the common methodology of a three two-equation system with both a three-equation system and three separate OLS regressions. While there are significant differences in the coefficients of the three main variables within the sample period, we could not find substantial differences in out-of-sample forecast estimates.

Evaluation of the Design of the Lending Business Process Control

The paper presents the results of the analysis and evaluation of the design of the control over the main banking business process, namely the process of providing a loan to a legal entity, client of the bank. This study encompasses the analysis of the main risks accompanying the loan application process and control procedures which make it possible to minimize the existing critical risks and stabilize, in general, the operation of the lending mechanism. The results of the analysis of the business process allow the authors to propose certain methods for visualization and decomposition of the process.

Macroeconomic Policy Beyond Brexit

Macroeconomic Policy Beyond Brexit

Empowerment and its Relation with the Job Performance Among the Bank Employees in the Kingdom of Bahrain

Empowerment of employees give them the power and responsibility in order to enhance their self-confidence and give them freedom to perform well. The performance of employees is the final product sought by all organizations, which is an indicator for success and failure. The primary objective of this study is to assess the extents of empowerment and the level of job performance among the bank employees in the Kingdom of Bahrain and if there is a significant correlation between both variables. The descriptive study was based on surveying 250 employees and managers from 5 main banks in Bahrain. The questionnaire measured the empowerment level as well as the job performance level among the respondents and the correlation between them. As considered the main two variables of the study. The survey questionnaire was developed and modified by the researcher according to the scope of the study. The response rate was 80%. The study data and hypotheses were examined by statistical analysis done on SPSS 25.0. Most of the respondents found that the level of empowerment and job performance were at very high level in banks in Bahrain. The study found a strong correlation between empowerment of employees and job performance. Thus, the alternative hypothesis was accepted. The findings support the high level of empowerment of employees and job performance and there is a strong correlation between them.

Modelling customer-based bank reputation: the moderating role of uncertainty avoidance

PurposeThe purpose of this paper is to explore the moderating role of culture in terms of uncertainty avoidance in the antecedents of customer-based bank reputation in two countries with different cultural patterns.Design/methodology/approachThis study was carried out by surveying 910 bank customers of the main banks in the UK and Spain. The hypotheses employed in this research were developed by contrasting the moderating role of uncertainty avoidance in the relationships between bank reputation and its antecedents, and were then tested through the use of partial least squares modelling.FindingsSignificant differences between British and Spanish bank customers were found with regard to the impact of innovation, workplace and leadership on bank reputation. However, the results obtained when considering uncertainty avoidance as a continuous moderator variable suggested that only the differences found as regards workplace and leadership were owing to this variable, thus providing empirical support for two out of the eight hypotheses developed on the basis of cultural theories.Originality/valueThis is the first study to analyse whether the relative importance of the antecedents of bank reputation differ with regard to customers’ uncertainty avoidance patterns, which is the cultural variable that is most closely linked in literature to customers’ banking decisions. This study contributes towards reputation research by showing that cultural differences in terms of uncertainty avoidance should be used with caution when establishing business guides for bank managers.

The ECB’s accountability within the SSM framework: Mind the (transparency) gap

With the establishment of the Banking Union, the European Central Bank has become the main banking supervisor within the framework of the Single Supervisory Mechanism. Unlike monetary policy tasks, which the European Central Bank performs in line with numerically set objectives, supervisory ones are more difficult to quantify. At the same time, supervisory decisions entail a margin of discretion, which opens the way for potential ‘political interferences’ within the supervisory process. Considering that in supervision the European Central Bank disposes with the same level of independence as in monetary matters, concerns emerge on how to secure the European Central Bank’s accountability in this domain. Indeed, recent reports by European Union actors have warned about a ‘transparency gap’ undermining the European Central Bank’s accountability within the Single Supervisory Mechanism. This contrasts the European Central Bank’s monetary policy practice where transparency has been consistently prioritized over time with positive outcomes. This article highlights the shortcomings in respect of European Central Bank’s supervisory transparency by reviewing standards and practices in the monetary and supervisory domain. Arguing that transparency is salient to the European Central Bank’s accountability within the mechanism’s multilevel governance framework, the paper suggests potential enhancements of existent information channels in line with the unique requirements of supervision.

Opções de ações e disclosure: o nível de divulgação das instituições financeiras

As opções de ações a funcionários que têm como vantagem a possibilidade do colaborador participar na valorização futura da empresa estão no cerne de crises financeiras e escândalos corporativos relacionados, principalmente, à manipulação de demonstrações contábeis. Diante dos novos dispositivos como os da Lei Sarbanes-Oxley (2002) e de Basiléia III (2010) emergem entre outros objetivos garantir maior transparência na gestão de empresas. Nesse sentido, o presente estudo buscou avaliar o nível de disclosure das instituições financeiras pós-crise financeira de 2008 dos programas de pagamento a funcionários. A amostra foi composta pelos principais bancos de 33 países, os denominados “grandes de demais para quebrar” que são mais propensos a absorver recursos públicos como forma de evitar sua falência, totalizando uma amostra total de 172 instituições. A qualidade das informações foi medida pela soma unitária de itens presentes ou não nas demonstrações financeiras, buscou-se estabelecer uma classificação para se pontuar países e instituições individualmente quanto às práticas de divulgação por meio de um conjunto de informações qualitativas e quantitativas que estavam nas notas explicativas. Os resultados indicam que o nível disclosure é influenciado pelo grupo cultural abordado conforme de modelo de Gray (1988), com o destaque do grupo cultural anglo-saxônico pela qualidade das informações e a uniformidade dos resultados. Observou-se que a aderência a esses programas de remuneração é influenciada pelo tamanho da economia dos países, com exceção de países como Alemanha, México e a Índia.

A DINÂMICA DE USO DOS APLICATIVOS MÓVEIS BANCÁRIOS: UMA ANÁLISE SOB A PERSPECTIVA DA POPULAÇÃO IDOSA

This study analyzes the mobile applications of five largest Brazilian banking institutions on principles of usability proposed in literature and draws a parallel the results with these technologies use by elderly public. Such an approach is justified by increasing life expectancy around the world and the considerable increase in smartphones use by senior citizens. Study purpose is to understand the banking applications use dynamics of by the elderly population of southern Minas Gerais. This aim was achieved through documentary and quantitative analysis, with application of multivariate analysis, descriptive statistics techniques and cluster. The research population was segmented among the elderly, adults and adolescents, allowing identification different patterns of behavior among the age groups. The results demonstrated that main impeding factors for banking applications use by the elderly are smartphones incompatible and fear. It was perceived that younger population make use of and is satisfied with banking applications of main Brazilian banks.

Seroprevalence of HBV, HCV, and HIV among Blood Donors in Main Blood Bank in Najaf Province, Iraq

Seroprevalence of HBV, HCV, and HIV among Blood Donors in Main Blood Bank in Najaf Province, Iraq

Effects of unconventional monetary policy on income and wealth distribution: Evidence from United States and Eurozone

As an answer to the ?Great Recession? and Zero Lower Bound problem, main central banks had to use unconventional monetary policy (UMP). This research focuses on the distributive effects of these measures on household income and household wealth in the United States of America (USA) and the Eurozone. For this purpose, this paper presents four models that were constructed using the Structural Vector Autoregressive methodology (SVAR). The results suggest that the UMPs applied by the Federal Reserve (FED) in the USA could increase wealth and income inequality through the portfolio channel. However, the same results were not observed in the Eurozone.

Финансовая стабильность как цель политики центральных банков (Financial Stability as a Central Banks' Goal)

Russian Abstract: По прошествии глобального кризиса, обеспечение финансовой стабильности стало дополнительной целью монетарных властей. Сложность достижения поставленной цели обусловлена не только отсутствием общепринятого определения финансовой стабильности, но и их ее количественных индикаторов. Более того отсутствует и консенсус о соотношении основной цели центральных банков по обеспечению ценовой стабильности и дополнительной цели, а также о возможности использования процентных инструментов для их достижения. Полученные оценки соотношения целей по обеспечению ценовой и финансовой стабильности свидетельствуют о возникновении противоречий между поставленными целями только в неблагоприятных условиях (в условиях кризиса). Это позволяет центральному банку использовать процентную политику для достижения стабильности финансовых рынков, при этом возможности использования процентной политики существенно возросли после глобального кризиса и введения инфляционного таргетирования в России. Engflish Abstract: After the global crisis, financial stability became an additional goal of monetary authorities. The complexity of the implementation of this aim lies not only in the absence of a generally accepted definition of financial stability, but also of its quantitative indicators. Moreover, there is no consensus on the link between the main central banks' goals for ensuring price and financial stability, as well as the possibility of using interest rate mechanisms to achieve both of them. The obtained estimates of the link between the Bank of Russia's goals for ensuring price and financial stability allow us to conclude that contradictions between these goals arise only in adverse conditions (periods of crisis). This allows the Bank of Russia to use the interest rate policy to maintain the stability of the financial market, the regulatory potential of which has increased significantly after the global crisis and the introduction of inflation targeting in Russia.

Banks' Climate Commitments and Credit to Brown Industries: New Evidence for France

In this paper, I investigate whether and how banks align green words with deeds in terms of credit allocation across more or less carbon-intensive industries in France. I use a rich dataset of bank credit exposures across some fifty industries and two size classes of borrowing firms for the main banking groups operating in France, which I merge with information on industries' greenhouse gas emission intensities and a score for banks' self-reported climate-related commitments over 2010-2017. I find evidence that higher levels of self-reported climate commitments by banks are associated with less lending to large corporates in the five brownest industries. However, lending to SMEs across more or less carbon-intensive industries remained unrelated to banks' commitments to green their business. Since SMEs are not required to report on their carbon emissions, while large firms are, these findings suggest that devising an appropriate carbon reporting framework for small firms is likely to enhance the decarbonization of bank lending.

The Impact of Bank Loan on Executive Perquisites under the Background of Post-Split-Share Reform

Executive Perquisites are agency cost and harm the interests of shareholders. After the split share reform, the first largest shareholder has decreasing his shares and the problem of executives’ expropriation has been more prominent. This paper uses the data of Chinese listed firms during 2006 to 2017 and investigates the corporate governance effect of bank loan on executive perquisites. The results show that bank loan can constraint the executive perquisites which have corporate governance effects; the corporate governance effect of bank loan has more prominent in Non-SOEs than in SOEs; and the corporate governance effect of bank loan has more prominent in the listed firm with higher proportion of share of the first largest shareholder. So the conclusions provide empirical evidence not only for the discussion of commercial bank reform but also for the corporate governance reform of Chinese listed firms under the financial systems of main bank financing.

Model-Based Regulation and Firms' Access to Finance

This paper investigates the impact of the model-based approach to bank capital regulation (i.e. the Internal Ratings Based Approach; IRBA) on firms' access to finance. A difference-in-differences methodology is used given that the IRBA, introduced as part of Basel II, was adopted by different banks in different times. The results suggest that firms indirectly affected by the new regulation via their main bank adopting the IRBA faced a 6-7 percentage point higher probability of facing a deterioration in their access to finance. When the sample is adjusted for the demand for credit, this estimate increases to 12-13 percentage points. The impact is found to come via increases in the cost of credit and to a smaller extent, reductions in the volume or size of loans. Around three-quarters of the effect is attributed to the sensitivity of the IRBA capital requirements to economic conditions, with adopting banks also found to specialize in low-risk lending.

A Definition of Relationship Lending in a Global Context: A Study of the Japanese Main Bank System in the USA

A Definition of Relationship Lending in a Global Context: A Study of the Japanese Main Bank System in the USA

Corrigendum: Quantitative efficiency assessment based on the dynamic slack-based network data envelopment analysis for commercial banks in Ghana

Background: Gains in bank efficiency improvement have widely been regarded as one of the most effective and efficient means of ensuring sustainability of a financial system. Aim: This article proposes a relative dynamic two-stage network data envelopment analysis model for measurement of bank efficiency based on the slack-based measure. Setting: Twenty-seven banks in Ghana during the period of 2009–2014. Methods: By considering simultaneous processes within the framework of two-stage data envelopment analysis, the slack-based measure approach identifies the sources of inefficiency in the banks. Results: In the empirical analysis, non-performing loans are an undesirable output in one production process, which should also be treated as a carry-over factor; that is to say, some non-performing loans from the preceding year can be collected in the current year. The carry-over factors should be used to indicate the presence of performance gaps that exist in the banks. The proposed model was used to measure the efficiency of the 27 banks in Ghana during the period of 2009–2014. We also present useful suggestions for improvement in bank efficiency based on the empirical results. Conclusion: The 27 main commercial banks in Ghana are far from efficient. For all banks, the efficiency score in the second stage is much higher than that of the first stage. That means more attention should be paid to the first stage of production in order to increase the banks’ efficiency.

Larval supply of Peruvian scallop to the marine reserve of Lobos de Tierra Island: A modeling approach

The Peruvian scallop (Argopecten purpuratus) is the second main contributor to the total catch of mollusks in Peru, after jumbo squid. There are two main scallop banks populations in northern Peru: Lobos de Tierra Island (LTI) and Sechura Bay (SB). Despite a continuous, intense relocation of seeds from LTI, the natural bank population still persists there. To understand this, we studied larval connectivity between LTI and SB using the first invertebrate larval transport biophysical model developed in the region. Larval local retention were 2.4% and 1.57% on average at LTI and SB respectively, while larval transport from SB to LTI was 0.02% on average and 0.07% in the opposite direction. Both larval retention and larval transport increased with spawning depth and were highest in austral summer. Two main larval transport paths from SB to LTI were identified, resulting from a combination of horizontal mesoscale circulation patterns and vertical flows. Potential management implications for these natural banks are discussed.

Should I Stay or Should I Go? Firms’ Mobility Across Banks in the Aftermath of the Financial Crisis

We study the mobility of Italian firms across different lending banks in the aftermath of Lehman Brothers’ collapse, when 40 per cent of the firms analysed changed their pool of lending banks. Using a unique dataset on a sample of about 3,000 Italian firms that encompasses financial and economic records, information on the existence of credit constraints and data on lending relationships with banks, we provide evidence that mobility within the credit market helped to ease credit constraints. Firms that started new banking relationships were able to maintain or even increase their outstanding loans. These firms were generally large and credit-rationed. At the same time, access to new credit lines was more difficult for small and more opaque firms, for which a long-term relationship with their main bank has been the most effective way of overcoming financial constraints. Geographical proximity is also important in affecting credit constraints: the closer the firms are to the lending banks, the lower is the probability of their closing an existing credit relationship and start a new one.