Main Bank Research Articles

The Comprehensive Effects of Ownership Concentration and External Governance on Banks’ Capital Buffers

We investigate the effect of ownership structure on banks’ capital buffers with a method of System GMM, for a sample of main commercial banks in China. The increase of ownership concentration can promote the buildup of capital buffers, while implicit guarantee from government can reduce this effect for the systemically important banks. The relative lower ratio of interbank deposit to total deposits weaken the supervision from peer banks for the accumulation of capital buffers. Adequately increase the ratio of major shareholders, accelerate the development of interbank deposit market and reduce government implicit guarantees are very essential for Chinese financial stability.

EFICIÊNCIA BANCÁRIA NO BRASIL (2010-2019): UMA ANÁLISE DE DOIS ESTÁGIOS

The objective of this work is to analyze the performance of the Brazilian banking sector and its determinants. The present research was divided into two parts, the first part seeks to determine the technical efficiency by the DEA-BCC model in the main Brazilian banks in the period from 2010 to 2019. In the second part, the determinants that can influence the performance of banks are evaluated. Estimates indicate that large banks are, on average, more efficient than small and medium-sized banks. In addition, when looking at the type of ownership, foreign banks tend to perform better compared to national banks. In addition, the determinants point out that the net interest margin and non-interest income are significant and contribute positively to the level of efficiency. In turn, the capital adequacy ratio, non-performing loans and inflation have a negative impact on technical efficiency.

Regulatory and legal provision of banking sector capitalization in conditions of macroeconomic instability

The article summarizes the regulatory and legal provision of bank capitalization in conditions of macroeconomic instability using the example of Ukraine. The author systematizes the main approaches to determining the categories of legislation in the field of capitalization based on a review of publications by foreign and domestic scientists. The purpose of the article is to analyze the regulatory and legal provision of capitalization of the banking sector in the example of Ukraine and assess the existing gaps in the legislative framework. Within the framework of the article, a bibliometric analysis was carried out for the systematization of scientific works in the field of regulatory support of bank capitalization. The following research tools were used in the article: methods of analysis and synthesis, grouping, bibliographic analysis, comparison method, etc. The following categories of regulatory support for bank capitalization have been identified the primary State Law, State Laws, the main Central Bank Law and regulatory acts developed in accordance with the specifics of the bank's activities. The article identifies the main gaps in legislation at various levels of banking activity. From the NBU's point of view, the level of capital adequacy is characterized by banks' compliance with the specified standards H1 and H2. At the international level, these indicators are covered in the standards of the Basel Committee on Banking Regulation (Basel I, II, III). Several external and internal factors affect banks' implementation of the specified regulations. Macroeconomic factors include social, geopolitical factors, technological factors and national indicators. This determines the need for banks to consider fluctuations in GDP and incomes of the population when developing a resource policy, as well as implementing national legislation. Also, banks need to develop and implement appropriate action plans for negative scenarios of economic growth and population impoverishment.

A General Framework for Evaluating the Role of Electronic Banks in Achieving Sustainable Development According to 2030 Vision

After the United Nations adopted in 2015 the 2030 Agenda to achieve sustainable development, which included 17 goals, which made achieving these goals one of the great challenges facing societies, reducing poverty, protecting the environment, preserving natural resources and achieving a just peace. Before 2030 Based on the foregoing, the purpose of the research was to determine the requirements necessary to enable electronic banks to achieve sustainable development goals in accordance with Egypt’s Vision 2030 and in line with the United Nations 2030 Agenda. The research was applied on the National Bank of Egypt, which includes 500 branches. A questionnaire form was used as a tool to apply the research and delivered to the main bank branch, which in turn distributed it to the bank’s branches spread throughout the country. The research studies the compatibility of the design of the electronic banking system and its applications with the sustainable development goals approved by the United Nations, and determine what are the requirements, whether marketing, technological or operational, to follow the technological development in the field of electronic banking so that the National Bank is a pioneer in this field among its competitors. The banking sector includes 39 banks, and each bank has many branches. 600 questionnaire forms were distributed to the bank's branches by the main branch, and 78 items were excluded, so the return forms became 522 forms. The results of the data obtained through the questionnaire form were analysed and the required requirements were collected and divided into marketing, technological or operational requirements to include the 17 goals in the United Nations 2030 Agenda, taking into account the requirements of customers and employees, which included 17 elements of the system characteristics in order to achieve the 17 SDG goals. In the end, the research recommended re-designing the electronic banking system according to the results obtained from the research and after excluding the features that are not required by customers and employees and replacing them with other characteristics required by them.

Banks’ climate commitments and credit to carbon-intensive industries: new evidence for France

ABSTRACT I investigate whether and how banks align green words, in terms of their commitments to tackle climate change, with deeds in terms of credit allocation across carbon-intensive industries in France. I use data on bank credit exposures to large versus small firms across 49 industries 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 a slower growth of lending to large firms in the five most carbon-intensive industries. However, lending to small and medium-sized enterprises across more or less carbon-intensive industries remains unrelated to banks’ commitments to green their business. These findings suggest that devising an appropriate carbon reporting framework for small firms is likely to enhance the decarbonization of bank lending. Key policy insights Over 2010–2017, in France, banking groups that self-report to CDP as being more committed to climate change adaptation and mitigation tend to cut their lending relatively faster to domestic firms in the five most carbon-intensive industries. This pattern is entirely driven by the dynamics of banks’ credit to large corporations, which in France are legally bound to regular carbon reporting. In contrast, banks’ climate commitments do not seem to affect their lending to domestic small and medium-sized enterprises(SMEs) in carbon-intensive industries. Overall, the results support recent calls for an extension of mandatory carbon disclosure regulations to SMEs.

Geomorphology of the Congaree River Floodplain: Implications for the Inundation Continuum

AbstractFloodplain inundation has been viewed as a type of binary process set by the relative elevation between river stage and levee crest. However, recent reports in the literature show that this perception may have limited applicability. In particular, through‐bank channels, conduits that cross the main river levees or banks, facilitate conditions for an “inundation continuum,” or inundation for a range of sub‐bankfull flows. Moreover, through‐bank channels and their networks provide a direct hydraulic connection between the main river and the floodplain interior. We analyzed through‐bank channel structure and floodplain topography and compared them to river surface elevation to provide greater insight on floodplain inundation processes. Results show that well‐developed levees with through‐bank channels facilitate frequent through‐bank inundation. Where levees are poorly developed, floodplain inundation occurs by overbank flow. Therefore, for a given discharge through‐bank and overbank inundation may occur simultaneously. For the Congaree River floodplain, we infer that this dichotomy of inundation processes leads to temporally and spatially complex inundation flow paths for a given river stage. Further, our analyses reveal that the inundation continuum concept should be considered in the context of having vertical, longitudinal, lateral, and temporal components.

Switching Costs in the Finnish Retail Deposit Market

I calibrate the switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It
 turns out that switching costs faced by deposit customers of the main Finnish banks manifest large variation and are high,
 ranging from 200 euros to nearly 1,400 euros. Over a 20-year period, switching costs have increased by roughly 50% in
 real terms, but in relation to average account balance, switching costs have not essentially changed. Changes and differences
 in the banks’ competitive strategies might explain the variation in switching costs across time and banks.

Аналіз тенденцій банківського фінансування економіки України у 2021 році

The article considers the development trends of the main banking markets of active operations for the eight months of 2021. The analysis of market trends has showed that despite significant efforts of the Government to intensify lending under the programs "Affordable Loans 5-7-9%" and "Mortgage Lending", the dynamics of growth of banks' loan portfolios can notmeet expectations. The banking regulator has adopted new legal and regulatory requirements that significantly cool the banking business in conducting new lending operations. Banks with state participation in capital dominate the volume of credit operations. There is a tendency to reduce the volume of negatively classified assets in banks with the participation of the state in capital. The downward trend in negatively classified assets provides prospects for attracting foreign capital to the balance sheets of these banks. In general, the global trend of enhancing the role of the state in solving problems during the crisis has manifested itself in the economic processes of Ukraine. Trends regarding the increase of the role of the state in the financial sector during the economic crisis in modern literature is called the "new Keynesianism". In the banking sector of Ukraine there is a situation when banks have a reserve of liquidity to expand lending. But the regulatory requirements for financial monitoring of banking operations and reserve requirements for active operations of banks have become stiffer in terms of resource support for the economy.In addition, the strengthening of legal requirements for personal criminal liability of bank management is a brake on resource support of the economy. Fiscal housing at this stage of development of the financial system of Ukraine is manifested in the significant activity of banks in the government securities market. It is not worth expecting significant economic support due to the increase in bank lending without changes in regulatory policy in the crisis of 2021.

The Impact of Relationship Lending on Bank Loan Process for Korean SMEs

We investigate the effects of the bank-firm relationships on the decision making process regarding loan application, loan approval, and loan interest rate. To do this, we use data from 2016, and 2017 Surveys of Korea Small Business Finance conducted by Industrial Bank of Korea. We found that a more intense bank-firm relationship increases the likelihood of loan approval. Also, SMEs borrowing from lower number of banks and with more concentrated loans in main bank seem to obtain credit from main bank at lower interest rate than others. But applying for a loan is not related to the bank-firm relationship. This findings suggest that a close bank-firm relationship can reduce information asymmetry problem and alleviate SMEs’ credit constraint. Also bank-firm relationships seem to be important in determining the loan interest rate. As a relsult, our findings support that relationship lending has a beneficial effect on the supply side of the Korean SME credit market.

Corporate Governance Practices in Indian Banking Industry Experience with SBI and HDFC Bank

The function of Commercial Governance (CG) has turn out to be an essential a part of the manner of telling agencies to any a hit company. The maximum astronomically conventional enterprise mantra currently is that once the CG exercise of an company will come advanced it's far to produce stocks with stakeholders. The equal is authentic of the country's rising financial zone, particularly the banking enterprise. The flux of recent particular and global banks has made the enterprise distinctly competitive; on the equal time, the function of the CG has turned out to be redundant essential on the grounds that protective the hobbies of actors. In this paper an pass is made to gets an in depth observe of the CG exercise of the 2 main banks primarily grounded completely on their document for the 2006-07 financial time. The banks had been nonetheless being delved via way of means of The State Bank of India (SBI) and The HDFC Bank Ltd., the primary of which come the main public zone fiscal institution and the primary biggest fiscal institution. The observe is primarily grounded completely on a CG document submitted via way of means of the Narayana Murthy Committee on CG.

Dependence in the Banking Sector of the United States and Mexico: A Copula Approach

The objective of this work is to estimate the patterns of dependence between the yields of the stock prices of the main banks of the United States (US) and Mexico. We estimate the patterns of absolute dependence and tail dependence through copulas of the Archimedean family and the use of rolling windows of 245 days. The data employed come from the daily share prices at closing from January 2, 2015, to December 31, 2020, for seven banks. Our results show that: i) there are patterns of high dependence among the main banks in the US, ii) there are patterns of very low dependence among the main banks in the US and Mexico, and iii) there are patterns of low dependence among the main banks in Mexico. These results have several implications, among them that the high-dependency patterns obtained among major US banks limit the joint selection of these US bank equity assets in an investment portfolio. Although this paper focuses on a small sample of banks, they represent an important portion of the banking sector in both countries. Given the limited literature on this subject in Mexico, our paper contributes to expanding this literature with a novel approach.

Identifying the potential of anadromous salmonid habitat restoration with life cycle models.

An investigation into the causes of species decline should include examination of habitats important for multiple life stages. Integrating habitat impacts across life stages with life-cycle models (LCMs) can reveal habitat impairments inhibiting recovery and help guide restoration efforts. As part of the final elements of the Habitat Restoration Planning model (HARP; Beechie et al. this volume), we developed LCMs for four populations of three species of anadromous salmonids (Oncorhynchus kisutch, O. tshawytscha, and O. mykiss), and ran diagnostic scenarios to examine effects of barrier removal, fine sediment reduction, wood augmentation, riparian shade, restoration of the main channel and bank conditions, beaver pond restoration, and floodplain reconnection. In the wood scenario, spawner abundance for all populations increased moderately (29–48%). In the shade scenario, spring-run Chinook salmon abundance increased the most (48%) and fall-run Chinook salmon and steelhead were much less responsive. Coho responded strongly to the beaver pond and floodplain scenarios (76% and 54%, respectively). The fine sediment scenario most benefitted fall- and spring-run Chinook salmon (32–63%), whereas steelhead and coho were less responsive (11–21% increase). More observations are needed to understand high fine sediment and its impacts. Our LCMs were region-specific, identifying places where habitat actions had the highest potential effects. For example, the increase in spring-run Chinook salmon in the wood scenario was driven by the Cascade Mountains Ecological Region. And, although the overall response of coho salmon was small in the barrier removal scenario (6% increase at the scale of the entire basin), barrier removals had important sub-regional impacts. The HARP analysis revealed basin-wide and regional population-specific potential benefits by action types, and this habitat-based approach could be used to develop restoration strategies and guide population rebuilding. An important next step will be to ground-truth our findings with robust empirically-based estimates of life stage-specific survivals and abundances.

Sero-prevalence of SARS-CoV-2 antibodies in blood donors during the third wave of infection in Norway, winter/spring 2021

Cross-sectional studies of the prevalence of anti-SARS-CoV-2 in representative groups are routinely used for surveillance of public health in Norway. The group of blood donors is easily accessible to provide an estimate over the infection prevalence. Repeated testing of returning donors also generates data about the duration of the antibody response following infection and vaccination.The aim of the current study was to provide updated information about the development of the pandemic in the blood donor population, and to estimate the number of asymptomatic donors visiting the blood center, in an effort to evaluate the measures to prevent virus spreading between donors and staff.In the two main blood banks in the Oslo area, all blood donors were offered antibody testing for a period of three months. Almost 12,000 donors were tested, and the mean weekly prevalence of antibody positive donors due to infection was 2.7 % (varied from 2.1 to 4.0 %). The number of donors presenting following vaccination was 810 (6.9 %). An average of 38 % of the infections had been asymptomatic, and 31 % of the antibody-positive donors were unaware of having been infected.In conclusion, the proportion of blood donors seropositive for anti-SARS-CoV-2 in our blood centers was stable whereas the number of vaccinated blood donors rapidly increased. This indicates that the virus spreading in the third wave of infection in the Oslo area mainly happened in groups underrepresented as blood donors. Health care workers prioritized for early vaccination may be overrepresented in the study period.

Relationship lending and the use of trade credit: the role of relational capital and private information

Using a unique sample of Italian manufacturing firms, we investigate the impact of relationship lending on firms’ use of trade credit. We find that firms maintaining close and long-lasting relationships with their main banks are associated with higher amounts of trade credit extended by suppliers. This result is robust to alternative measures of trade credit and relationship lending, and to different estimation techniques. We also analyze the mechanisms driving the association between relationship lending and the use of trade credit. Regression results suggest that the positive link between accounts payable and relationship lending is especially significant for firms that use to provide soft information to their lenders and for companies with greater relational abilities.Plain English Summary The existence of close and long lasting lending relationships positively affects the amount of trade credit manufacturing firms receive from their suppliers. By relying on the Survey on Italian Manufacturing Firms, we show that the positive link between relationship lending and the use of trade credit is driven by two channels: private information and relational capital. In a policy perspective, our findings reveal a need for banking regulation and supervision to encompass banking business models in evaluating banks. The current approach might not be suitable for local banks investing in soft information acquisition and could weaken SMEs’ chances to receive both bank financing and trade credit from suppliers. Moreover, from a managerial point of view, our results uncover the relevance of firms’ ability to create strong relationships with banks, suppliers, and other companies that may help alleviating financial constraints.

Pemberdayaan Masyarakat Melalui Literasi Keuangan Dalam Masa Pandemi Covid 19 Di Desa Yosowilangun Gresik

Community service is carried out in Yoowilangun village, Manyar Gresik sub-district. The COVID-19 pandemic has an impact on increasing the number of open unemployment in the community, and has an impact on decreasing income levels (economic crisis). Community empowerment efforts are carried out starting with understanding the community and its dynamics. The understanding needed is an understanding of the social order and community institutions as well as education related to financial management through financial literacy. The purpose of community service is to identify forms of community empowerment programs based on the potential and problems of Village Development during the COVID-19 pandemic, increase knowledge, skills of the main village communities related to financial management through financial literacy, understanding of bank financial institutions and fostering the entrepreneurial spirit of rural communities through business strategies during the pandemic. . The service method is carried out online by providing education about applications that can be used in managing finances and competitive strategies to survive during the covid 19 pandemic. The results of the service are in the form of understanding the stages of financial literacy, the use and benefits of cash book applications, understanding the main banking about granting credit and marketing strategies during the pandemic.

Understandable public anger

Abstract In the ten years from 2008 onwards the banking sector was constantly in the spotlight. Blame for the financial crisis and concern regarding controversial government bailouts were followed by public outrage about inflated bonuses, money laundering and false reporting. Over this period, banks deployed a range of legitimation strategies to salvage their reputation. This paper proposes a modified typology of legitimation strategies based on previous research (van Leeuwen and Wodak 1999; Vaara, Tienari and Laurila 2006), and examines how these are used by in the “letter to shareholders” published by the chairs of the five main UK-based banks over the ten years following the crisis. The strategies are analysed in terms of their object, target and interdiscursive features, and the particular persuasive roles of narrative and emotion are underlined.

Economic policy uncertainty and earnings management: Evidence from Japan

We empirically examine the effects of economic policy uncertainty (EPU) on earnings management in Japan. We find that EPU is negatively associated with earnings management, indicating that managers have incentive to reduce earnings management when EPU increases. We then examine the monitoring roles of various entities, focusing on the main bank that holds equity in their client firm. We find that the relationship between EPU and earnings management is less pronounced for firms with a main bank. The result is consistent with the view that the main bank’s monitoring role works well in normal times, resulting in less room for management to improve earnings quality when EPU is high. We find a similar result when considering firms with and without analyst coverage. These results suggest a moderating role of main banks and analysts in the relationship between EPU and earnings management. Finally, we find that the effect of EPU differs depending on subcategories on policy uncertainty and the extent of each firm’s exposure to that type of uncertainty.

Fed and ECB monetary policy spillovers to Emerging Market Economies

This paper presents evidence that the international spillovers of both Fed and ECB conventional monetary policies to Emerging Market Economies (EMEs) are global. The result comes from the panel Bayesian Vector Autoregressive (BVAR) model estimated for EMEs in which we control i.a. for foreign central banks’ policy shocks. Furthermore, in the separate BVAR model for Central and Eastern European (CEE) countries we show that the ECB is the main foreign central bank for these economies — after controlling for its shocks, their Fed counterparts play a very moderate role in driving GDP and prices in CEE.

Accounting Frauds and Main-Bank Monitoring in Japanese Corporations

This study examines whether the delegated monitoring of main banks effectively decreases severe agency problems. For example, this includes accounting fraud in bank-dominated corporate governance. In this context, the fraud triangle specifies the three main factors of opportunity, incentive, and rationalization. Main banks may reduce the factor of opportunity through actions such as monitoring, which plays a moderating role by reducing the potential for managerial misconduct, whereas, the incentive factor may be enhanced through the subsequent pressure that influences managers to force turnover when they do not repay debts. The potential influence that the main banks have on the fraud rationalization factor may be stronger in firms that are more dependent on main-bank borrowing. This study analyzed data from publicly listed firms in Japan for the period between 2008 and 2016 to determine how main-bank relationships affected accounting fraud, thus allowing an assessment of delegated monitoring practices. Findings showed that main-bank relationships were helpful for reducing accounting fraud, suggesting its overall effectiveness in delegated monitoring. Results also showed that large audit firms did not necessarily prevent accounting fraud, which implies that main banks can employ their own monitoring as a substitute for the roles typically played by these firms. Here, the main policy implication is that main-bank relationships may strengthen business ethics in the context of bank-dominated corporate governance. In conclusion, the continued analysis of bank monitoring may benefit stakeholders while strengthening business ethics in bank-centered economies.

Retrospective Study of the Seroprevalence of HIV, HCV, and HBV in Blood Donors at a Blood Bank of Western Mexico.

Obtaining blood which is safe for transfusions is one of the principal challenges in the health systems of developing countries. Supply of contaminated blood increases morbidity, mortality, and the costs of patient care. In Mexico, serological screening is mandatory, but only a few of the main blood banks routinely perform a nucleic acid test (NAT). Data from 80,391 blood donations processed between August 2018 and December 2019 at the Central Blood Bank of the Western National Medical Center of the Mexican Social Security Institute (IMSS) were analyzed. All donors were screened for serological markers and NAT was performed. Reactive donors were followed-up to confirm their results. The number of reactive donors and seroprevalence rates for HIV, HCV, and HBV were 152 (18.91/10,000), 385 (47.89/10,000), and 181 (22.51/10,000), respectively; however, these rates decreased when NAT-confirmed reactive results were considered. Male donors were found to have a higher seroprevalence than females, and younger donors higher than older donors. The present study shows that HIV, HCV, and HBV seroprevalence in blood donors in Western Mexico is low. We propose that Mexico should establish future strategies, including pathogen reduction technologies (PRTs), in order to improve blood safety and reduce transfusion-transmissible infections (TTIs).