Main Bank Research Articles

Balancing Equity and Innovation of Japanese Corporate Governance

This paper critically examines Japanese corporate governance, evaluating its role as a benefit or constraint in achieving equity and efficiency. It contrasts Japan's stakeholder-oriented model, characterized by long-term stability and employee-centric management, with the shareholder-focused frameworks of the United States and the United Kingdom. The analysis focuses on the unique roles of CEOs in Japan, emphasizing their responsibility toward employee welfare over short-term financial gains. It further explores Japan's historical business structures, including Zaibatsu and Keiretsu, which foster interconnected corporate networks but limit flexibility and innovation. The relationship between firms and main banks within Keiretsu is analyzed, highlighting their role in financial oversight and stability. Additionally, the study addresses Japan's "Three Sacred Treasures" of labor-management relations—lifetime employment, seniority-based wages, and enterprise unions—as integral to its governance approach. Despite its strengths, Japan’s model faces challenges, including limited board independence and slow decision-making processes. Recent reforms aimed at increasing transparency and aligning with global governance standards are discussed, suggesting a shift toward a hybrid model that blends traditional stability with market responsiveness. This paper provides a comprehensive analysis of the evolving dynamics of Japanese corporate governance, offering insights into its impact on Japan’s global economic competitiveness.

Formulate a Waste Bank Management Model in Pekanbaru City by Recycling The Material for Environmental Hygiene

Background and objectives: With various policies and systems at each waste bank, the effectiveness of waste banks in attracting people to manage their waste has not been running well, so they have not been able to provide solutions to the waste problem in Pekanbaru City and have not been integrated. This research aims to formulate a waste bank management model in Pekanbaru City. Method: This research uses quantitative and qualitative research methods with a descriptive approach. This research was conducted using questionnaires, interviews, and observations. Interviews were conducted using Google form with the Director of the Main Waste Bank (BSI), Chair of the Waste Bank Unit (BSU), Business Actors, NGOs, Academics, Head of the Sumatra Ecoregion Development Control Center (P3ES), Environmental and Hygiene Service Officials, Subdistrict Heads and Village Heads. Results: The characteristics of the waste bank in Pekanbaru City regarding planning are inadequate. In terms of organization, it is well structured, but most of the members have multiple jobs. In terms of direction, it has been implemented, but not evenly. In terms of control, it is still manual and has not utilized technology. The dominant factor in waste bank management in Pekanbaru City is economic factors, with a p-value <0.001. Conclusion: The waste bank management model in Pekanbaru City is to control the higher prices given to BSU and customers, so BSI must carry out integrated processing of segregated waste that has been collected at BSI by recycling the material.

The moderating effect of private information on the relation between financial reporting quality and corporate dividend efficiency

AbstractWe examine the effect of private information on the linkage between financial reporting quality and dividends. While prior studies show that better reporting quality mitigates agency problems regarding dividends, this effect can depend on capital suppliers' private information sources. In a sample of Japanese firms, we measure dividend efficiency regarding over‐ and underpayments and use unique main bank relationships as a proxy for private information. Reporting quality enhances dividend efficiency, and this linkage is observed only for firms without main bank relationships. The results suggest that high‐quality reporting streamlines dividends, particularly when capital suppliers do not have private information sources.

Impact of bank financial technology on the performance of banks in the European Union

This article examines how financial technology determines bank performance in different EU countries. The answer to that question would allow banks to choose their development policy. The paper focuses on the main and most popular bank services that are linked to financial technology. A SWOT analysis of FinTech is also presented to show the benefits and drawbacks of FinTech. FinTech-based services are very diverse and are provided by financial firms and banks alike. This paper looks at the financial technology provided by banks: internet usage (internet banking), number of ATMs, credit transfers in a country, percentage of the population in a country holding a debit or credit card and whether that population has received or made a digital payment. Using the multi-criteria assessment methods of CRITIC and EDAS, the authors analysed and compared the countries of the European Union and the financial technology used in them. As a result of the application of these methods, the EU countries under consideration were ranked in terms of the use of financial technology. Subsequently, three banks from different countries with different levels of the use of financial technology were selected for the study. For these banks, financial ratios of profitability were calculated to characterise their performance. Correlation and pairwise regression analyses between the banks’ profitability ratios and financial technology were used to assess the relationship and influence between these ratios. The main conclusion of the study focuses on the extent to which financial technology influences the performance of banks in the selected countries. It is likely that further research will try to take into account the size of the country’s population when analysing all financial technologies. Researchers also needed to find out what influence financial technologies have on the such financial indicators as operational efficiency (costs), financial stability, and capital adequacy.

Defaults on government guaranteed loans by potential high growth firms: Evidence from the COVID-19 period

Equity finance is used to fund innovative and growth-oriented businesses because of its resilience during economic downturns and investors' willingness to undertake higher risks compared to other financing. During the pandemic, 6500 equity-funded firms obtained government-guaranteed loans from traditional banks and new lenders. Our analysis of the determinants of loan default revealed that new lenders experienced a significantly higher default rate than the main banking sector. Additionally, firms funded by equity crowdfunding have a higher loan default rate than those backed by other equity providers. We explore the factors influencing defaults and variations by lender and investor type.

When unethical practices harm relationship outcomes: testing the influence of consumer-perceived unethical behaviour on trust and satisfaction in the banking sector

PurposeThe study has two objectives: (1) expand our knowledge of the relationship between unethical behaviour and both trust and satisfaction and (2) demonstrate that unethical behaviour research should be examined multi-dimensionally.Design/methodology/approachData were collected by resorting to a mixed methods approach. First, individual interviews were performed with 31 bank consumers from six main commercial banks in Bukavu city in the Democratic Republic of the Congo. Interview notes were submitted for content analysis to identify items and components that underpin the unethical practices construct. Second, a quantitative survey was conducted with 410 consumers from the same six banks. An aggregated-disaggregated structural equations modelling approach was used to test the impact of unethical practices on relationship outcomes through two studies. Study 1 tested a model that links unethical behaviour as a one-dimensional construct to trust and satisfaction. Study 2 tested a model that directly connects the four specific unethical behaviour components to both trust and satisfaction.FindingsResults from study 1 reveal that perceived unethical behaviour negatively influences consumer trust. Results also confirm that trust positively influences customer satisfaction. Results from study 2 confirm that unresponsive, disrespect and lying behaviours negatively influence both trust and satisfaction. Banks which are involving in those specific unethical behaviours can neither satisfy their consumers, nor maintain a sustainable and profitable relationship with them. Therefore, unethical behaviours harm the relationships outcomes in the banking sector.Research limitations/implicationsThe perceived unethical behaviour scale derives from a single data set and its reliability and validity need to be improved. Relationships between constructs are tested in a more direct way and ignore moderating variables. Perceived unethical behaviour is connected to relationship outcome variables while its impact on firms’ metrics have been ignored.Practical implicationsBanks have to understand customers’ perception of unethical behaviours and find a way to overcome them. Banks should recruit, motivate and retain employees who demonstrate an ethical inclination in the service encounter and create structures and mechanisms in order to monitor and manage unethical practices.Social implicationsBanks employees' unethical behaviour and practices not only damage the trust and reputation of banks but also can lead to frustration on the part of customers and damage their relationship with the institution. Our paper is a warning of this danger and might improve the social interactions between organisations (in general) and customers.Originality/valueUnethical behaviour is measured with a four-component scale in contrast to previous studies that have used bi-dimensional or one-dimensional scales. The study tests a disaggregated model that links four components of perceived unethical behaviour to relationship outcome variables. Perceived unethical behaviours are analysed from the customers’ perspective by resorting to mixed methods strategy.

Competitive positions of banks with foreign participation in the banking system Kyrgyz Republic

The article evaluates the main performance indicators of the main banks with foreign participation operating in the Kyrgyz Republic, presents the results of a rating analysis of these Kyrgyz banks by key indicators for the period 2018-2022 in order to determine the role of banks with foreign participation in the banking system of the republic.

Testing the immune markers MIP, IL-23 and find a relationship between them in the serum of male patients with toxoplasmosis

The aim of the current study is to find the levels of MIP and IL-23 in the serum of a group of male patients infected with Toxoplasma gondii who were diagnosed with the disease by rapid IGg screening and to find the levels of IGg protein in the blood serum of a group of male patients infected with the disease. The aforementioned immune indicators in the serum of healthy people as a control group. Blood samples were taken from donors who came to the main blood bank in Najaf Al-Ashraf, and the relationship between these immune indicators was studied using ELISA technology. The total number of males was (78), (48) of whom were sick males and (30) healthy males who were not infected with the disease. The study showed that the percentage of infected males was 61% and those who were not infected were (4.38%). Age was studied and it was found that there was no significant difference in the age of patients and healthy people, and that the age range of patients was between (16 – 56) years. Serum tests were conducted for MIP, there was a slight increase, and a highly significant increase for IL-23. The current study demonstrated the existence of positive relationships between MIP-1 and IL-23.

The role of Japanese corporate governance features in explaining rating differences between global and Japanese rating agencies

Many Japanese bond issuers believe that global credit rating agencies (CRAs)—Moody's and S&P—do not consider the unique corporate governance structure in Japan and assign lower credit ratings even though the “main bank” relationship in Japan can significantly reduce the default risk of these companies. Using 5,814 rated corporate bonds issued by 558 non-financial firms in Japan from 2003 to 2021, we find that local CRAs (R&I and JCR) weigh unique Japanese corporate governance features more heavily and assign higher ratings to Japanese corporate bonds relative to global CRAs. Our results further suggest that the degree of rating differences between local and global CRAs for individual issuers results from systematically different assessments of company-specific risk by these CRAs. Our data also reveal that the importance of main bank ties in Japanese corporate governance remains intact in more recent years, contrary to previous findings.

Data envelopment analysis for identification of bank branches appropriate locations in terms of their efficient operation

One of the main banking activities is the branch network. It provides the effective banking, the profitability. Choosing the right location of branches is very important for the bank effective operation. Random or intuitively locations can have a negative impact on key performance indicators in the future. The correct and thoughtful choice of the bank branch location ultimately determines its maximum efficiency. The paper concerns with the determining of the bank branch location in terms of thorough mathematical calculation and many factors influencing bank activity. We developed a special calculation method using the DEA (Data Envelope Analysis) methodology, considering financial, branch location, location features, etc. The paper dwells on the issue of one large branch effectiveness comparing to several smaller branches covering a wider consumer area on the example of the branch on A. Sharifzade street, Baku, Azerbaijan. Indeed, it is important to consider the location in terms of its geolocation and landscape. However, one of the main issues is expediency of establishing one large or several small branches in densely populated areas. Moreover, it is necessary to take into account the infrastructure to improve the bank performance. To consider this issue, we use both hypothetical and statistical data of Capital Bank. It is one of the largest banks in Azerbaijan. Also it has a large network of branches. The article examines expediency of establishing one large or several small branches in the area close to the existing branch of Capital Bank on A. Sharifzade street. The efficiency of the current operating branch was compared with the total efficiency of virtual branches in several combinations. We analysed the indicators of the Inshaatchylar branch and virtual branches in different combinations in different locations in accordance with DEA CRS (Constant Return to Scale) method. Additionally, we determined the effectiveness of both the Inshaatchylar branch and virtual branches in various combinations. Thus, the highest score is the most effective one.

R&D investments under financing constraints

ABSTRACT We analyse the effect of credit supply constraints on R&D conditional on the financial strength of firms and heterogeneity in the restrictions in the supply of external financing. The financial strength of firms and access to external financing are identified by an exogenously calculated rating index. Restrictions in the supply of external financing are determined by the specific time period (crisis vs. non-crisis) and the balance sheet strength of the firm’s main bank in terms of bank capital. Our results support the theoretical prediction that financing constraints negatively affect R&D. We find that firms with a lower financial strength reduce R&D to a stronger extent in times of stress on financial markets and when the firm faces restrictions in external financing. Additionally, the effect does not persist over time.

Waste Management System: A Case Study of Waste Bank Management Toward a Circular Economy in Maros Regency

Waste management has been in the spotlight recently due to the annual escalating volume of waste generated. The concept of a circular economy has emerged as a viable economic framework that aligns with sustainable development objectives, particularly those concerning responsible consumption and production practices to support local economies. This article seeks to assess the efficacy of waste bank management in fostering the development of an efficient municipal waste management system conducive to a circular economy with a robust waste recycling infrastructure. This study employed a descriptive qualitative interpretative approach underpinned by a phenomenological framework. Data were gathered from diverse reputable sources such as journals, books, and other relevant references, which the author subsequently analyzed. The findings indicate that waste management in Maros Regency has been operating optimally, driven by stakeholder involvement in promoting waste disposal practices within the community. Establishing the Turikale Main waste bank is a testament to the success of transitioning waste management towards a circular economy model. This initiative facilitates waste recycling and empowers the local economy, generating substantial monthly revenue independently. The significance of this research lies in its capacity to offer valuable insights and recommendations for researchers seeking to evaluate and formulate waste management strategies anchored in the concept of waste banks, which can be replicated in other regions.

MAIN DIRECTIONS FOR IMPROVING ACCOUNTING AND AUDITING BANK LOANS

In auditing practice, there is a risk of not detecting significant misstatements in reporting even with a complete 100% audit of all business transactions. The main opportunity to minimize risk is, first of all, to increase the volume and accuracy of planned audit procedures and the amount of collected audit evidence. One of the promising areas for the development of modern audit technologies is its computerization.

Landscape structure of the Middle Lena valley

In this article we present the results of landscape structure study in the Middle Lena valley (Erkeni, Ensieli and Tuimaada), made using GIS mapping based on Sentinel 2 satellite images and ASTER GDEM datasets. Alas complexes and croplands were identified using K-means image segmentation with different initial numbers. Three machine learning algorithms were tested for pixel-based land cover classification. The best result was achieved with the Support Vector Machine classifier. The mapping revealed the landscape structure of 20 spatial units, which were organized into groups of upland, alas, slope, valley and floodplain landscapes. The contrasting landscape structure of the Middle Lena valley was revealed. The northern Ensieli valley is characterized by the predominance of forest larch-pine landscapes, alas complexes mostly dry with steppe meadows are widespread in the watershed. The slopes are dominated by larch forests with patches of birch. The central Tuimaada valley is the most anthropogenically transformed, here steppe meadows and anthropogenic steppes dominate. The plateau part is mainly forested with croplands. The southern valley of the Erkeni is characterized by the smallest area of the valley part dominated by steppe meadows, the slopes of the main bank of the southern and south-eastern exposition are covered with xerophytic meadows. The landscape structure of valleys, floodplain and plakor parts largely determines the specifics of agricultural land use of the local population. The results obtained can be used for further research into the response of permafrost landscapes of the Middle Lena valleys to increased anthropogenic pressure in the context of climate change.

Revisiting Banks' Performance After the Digitalization Acceleration: The Case of Conventional Banking Industry in Indonesia

Otoritas Jasa Keuangan (OJK) facilitates digital banking acceleration by establishing regulations related to digital banking. After its implementation, banking performance in general has increased, but some banks experienced discrepancies. This study aims to analyze the comparison of banks’ fund composition, operational efficiency, and economic rentability before and during the acceleration. This research uses the comparative tests by the Wilcoxon Signed Rank Test and Paired Sample T-Test based on the existing data of nine banks listed on the Indonesia Stock Exchange (IDX) main board. The result indicates that there were significant differences in banks’ Current Account Saving Account composition, operational efficiency, and economic rentability variables. In contrast, banks’ Time Deposit composition variables did not experience significant differences before and after digitalization acceleration. This study was conducted based on the data from IDX main board banks that have provided online account opening features and experienced a decline in one of the fund composition, operational efficiency, and economic rentability performance.

Main bank impairment and corporate cash holdings during the global financial crisis

This paper examines how the impairment of main banks’ balance sheets affects corporate cash-holding behavior during the 2008 financial crisis using a firm–bank matched panel dataset of 2,520 firms in Japan. The major findings of this paper are as follows. First, the impairment of main banks increases firms’ cash holdings during this financial crisis. Second, this tendency is more pronounced among firms with limited financing sources and those with unstable main bank relationships. Third, holding large amounts of cash increases the value of firms with main bank impairment during the 2008 financial crisis.

Creditor Governance and Tax Avoidance—A Quasi-experiment Study based on the Main Bank’s IPO

Creditor Governance and Tax Avoidance—A Quasi-experiment Study based on the Main Bank’s IPO

Surveying the reputation-regulation interface in the SABI industry: Perspectives of private banking customers

Purpose: Bank reputations took a severe knock following the global financial crisis of 2007–2009. To get the global banking industry back on its feet, regulations existing at the time were strengthened and new ones were introduced. While the industry has come a long way in clawing back its reputation, research on the present state of reputations of some global banks suggests that these reputations are still underpinned by national regulators. In the South African context, it is not clear to what extent bank reputations are underpinned by the reputation of the main banking regulator: the South African Reserve Bank (SARB). This article looks at perceptions of private banking customers to ascertain whether they believe that bank reputations derive from the reputation of the regulator.Design/methodology/approach: A quantitative research methodology was applied. Purposive sampling was used to collect data from 111 banking customers using a Likert scale. Four hypotheses on reputation-regulation relationships were then tested using the non-parametric Wilcoxon Signed Rank test.Findings/results: The results show that regulation plays no role in how private banking customers perceive bank reputations.Practical implications: This study highlights that there is little scope for banks to accrue ‘reputational rent’ by free riding on the reputation of the regulator. Banks must therefore take steps to proactively engage in their own reputation building exercises.Originality/value: This research is the first to look at the reputation–regulation interface in the local banking industry from private banking customers’ perspective. It highlights that each bank must work hard to build the reputation it desires.

Mitigation bank applications for freshwater systems: Control mechanisms, project complexity, and caveats.

Biodiversity and mitigation banking has become a popular alternative offsetting mechanism, especially for freshwater species and systems. Central to this increase in popularity is the need for sound control mechanisms to ensure offset functionality. Two commonly used mechanisms are monitoring requirements and staggered release of bank credits over time. We used data from 47 banks in the United States, targeting freshwater systems and species. Based on the 47 banks meeting our criteria we showed that control mechanisms generally scale with increased project complexity and that banks release most of their total credit amount within the first 3 years. We further showed that advance credits are common and can increase the potential for credit release without providing tangible ecological benefits. Physical and biological assessment criteria commonly used by banks let us identify three main bank types focusing on connectivity, physical aspects, and habitat and species and their application possibilities and caveats to provide different ecosystem benefits for freshwater species and systems affected by anthropogenic development.

Pengolahan Sampah Polimer Termoplastik dan Termoset di Lingkungan Bank Sampah Induk Kabupaten Jember

The Jember Regency Main Garbage Bank has the role of fostering and coordinating the Unit Garbage Bank in the Jember Regency area. BSI had several problems in terms of how to sort polymer waste and the need for technological tools for processing plastic polymer waste. The purpose of the PKM activity is to convey knowledge, information and technology for processing plastic polymer waste. The socialization that has been delivered is related to thermoplastic and thermoset polymer waste processing technology based on physical, chemical, technological and mechanical properties, as well as management and marketing strategy for waste bank products. After interviews with BSI and BSU management, discussions with participants, mentoring, and evaluation with partners; The PKM team presented that a Garbage Bank in the city of Jember really needs a plastic polymer waste counting tool to realize the Zero Waste program, increase economic value, usability and aesthetic value. Processing of plastic polymer waste has several methods, namely; recycling plastic waste into handicraft products, turning plastic waste into pellets, processing plastic waste into; fuel oil, brick mixture, and asphalt, recycling process, namely; Hydrogenation, Glycolysis, Methanolysis, Hydrolysis, Gasification, Pyrolysis and Catalytic Conversion, Recycling methods, namely (primary, secondary, tertiary and quarter) recycling.