Major Financial Institutions Research Articles

From online banking to biobanking: designing and implementing a data delivery platform for researchers of the China Kadoorie Biobank

IntroductionAs a large prospective cohort study of 512,891 participants, we routinely integrate data via linkage to population health outcomes to deliver up-to-date research datasets. Building on experience from the private sector, we have implemented a platform that supports the delivery and audit of secure datasets to internal and external researchers.
 Objectives and ApproachWe aimed to create a platform that delivers secure research datasets for preliminary analyses and fieldwork with dynamic censor dates. It must also provide multiple static versions of an analysis-ready database with fixed censor dates. Individual participant outcome data from population health sources (death and disease registries and health insurance agencies) can be integrated and linked regularly to other health-related data, e.g., genetic, bioinformatics, and medical device. With knowledge of data management strategies used in major financial institutions, we have produced systems that successfully implement the techniques of data warehousing, multiple concurrent environments and secure dataset access and delivery.
 ResultsAs at the end of 2017, we had over 300 registered and approved researchers eligible to request datasets. Using our platform, we have recorded over 150 requests and successfully delivered over 100 de-personalised and encrypted datasets to external researchers around the world. In addition, we have supplied secure datasets to over 20 Global Health MSc and DPhil students studying at The University. The platform currently hosts 4 completed analysis-ready databases with censor dates ranging from 31st December 2013 to 11 years of follow-up as of 31st December 2016. A 5th analysis-ready database (with the most recent outcome data from participants’ death, disease and hospitalisations) is already under development. We plan during 2018 to make available more data sources and outcome data to our external researchers.
 Conclusion/ImplicationsWe have developed a versatile platform that delivers secure datasets for researchers from a selection of analysis-ready databases, each with differing censor dates and available data sources. This platform is scalable and can accommodate regular integration of known follow-up data sources along with new and emerging data sources.

Research on agricultural product price forecasting model based on improved BP neural network

BP neural network algorithm and genetic algorithm are the core algorithms in machine learning algorithms. Major mainstream internet companies and financial institutions have begun to use machine learning algorithms to fit the data, which directly stimulates the development of domestic machine learning algorithms. The research of this paper shows that the algorithm optimization has strong advantages in modeling real estate data, but the current neural network training process cannot be explained. With the development of technology and artificial intelligence, more progress will be made in the area of GA optimization of BP neural networks.

Challenging the risks-based model of involuntary resettlement using evidence from the Bui Dam, Ghana

The Impoverishment, Risks and Reconstruction (IRR) model is arguably the most significant conceptualization of involuntary resettlement to date, strengthening the praxis of the major international financial institutions. Even so, resettlement remains synonymous with impoverishment. While commonly attributed to the failure of governments to properly implement resettlement plans, this article finds that the assumptions embedded in the IRR model are contributory. Based on interviews and focus groups at the Bui Dam resettlement in 2016, the model is useful for identifying material losses, but fails to illuminate more complex social fragmentation, extra-local dynamics and relationships of power.

Equity volatility connectedness across China’s real estate firms and financial institutions

The study investigates the dynamic equity volatility connectedness across the major real estate firms, banks, and other financial institutions in China. Based on the relative level of equity volatility connectedness, the study also examines the systemic importance of real estate firms and banks. The study shows that despite widespread worries about potential real estate bubbles in China, total directional connectedness from real estate firms to banks has decreased over the sample period. In contrast, total directional connectedness from banks to the real estate firms and to the financial institutions has become stronger over the sample period, which implies stronger risk originating from the banking sector. The study also shows that size plays an important role in determining the systemic importance of a real estate firm to the banking sector. The largest real estate firm displays the highest average systemic importance ranking. However, size does not appear to be the determinant factor of the systemic importance of a bank to the financial system. The largest bank shows the lowest average systemic importance ranking and 70% probability of being the least or second least systemically important bank in the long run.

Financial Data Transparency, International Institutions, and Sovereign Borrowing Costs

Recent events in international finance illustrate the close connection between the viability of a country's major private financial institutions and the sustainability of its sovereign debt. We explore the precise nature of this connection and the ways in which it shapes investors’ expectations of sovereign creditworthiness. We consider how investors use the overall level of information available about the private financial sector—and the potential risks it poses to government finances—when making decisions about investing in sovereign debt. We expect that governments providing more information about the private financial sector will have lower, and less volatile, borrowing costs. In order to test this argument, we create a new Financial Data Transparency (FDT) Index measuring governments’ willingness to release credible financial system data. Using the FDT and a sample of high-income OECD countries, we find that such transparency reduces sovereign borrowing costs. The effects are conditional on the level of public indebtedness. Transparent countries with low debt enjoy lower and less volatile borrowing costs.

Synergy Between the Nigeria Banking Sector and the Nigerian Stock Exchange as Nigeria Economy Development Agents (2007-2016)

The study is designed to examine the impact of banking and the stock exchange on the economic development of Nigeria and the interplay of relationship between these two major financial institutions as agents of economic development between 2006 and 2016. The independent variables were: Market Capitalization, Total Securities Listed (for the Nigerian Stock Exchange) and Total Bank Deposit and Domestic Credit to Private Sector by (for Banks). Gross Domestic Product, the barometer of economy development, is the dependent variable. These secondary data were sourced from National Bureau of Statistics (NBS), Nigeria Stock Exchange publications and various issues of Central Bank Nigeria statistical bulletin. Data were analyzed using OLS, regression analysis. From the analysis performed, the development in Nigeria’s stock market has positive significant relationship with economic growth both in short and long run. The result dispelled the adeptness of Nigeria stock market to propel growth. GDP = -3614.57 + 0.288 MC + 4.67 TBC + e. Result of regression of each agent variables to the national GDP showed stock market to be dominant. This is rather surprising because if the financial performance indicators of the banks and stock exchange indices were something to go bye, they ought to be moving in the same direction and relative degree as development catalytic agents. Policy makers must urgently look into this.

Open innovation in financial institutions: individual and organisational considerations

This qualitative empirical paper contributes to extant literature by unveiling peculiarities of: a) the profile of an open leader; b) the organisational practices and mechanisms conductive to an open corporate environment, by bringing insights from the financial services industry. Thirty in-depth semi-structured interviews have been conducted with C-level executives of major financial institutions in Europe, Americas and Asia-Pacific and 100 job openings and descriptions have been reviewed. This research sharpens the understanding of open in the financial industry, especially in the face of disruptive technological forces and FinTech innovation. Open requires individual, organisational and cultural readiness. Integrated open capabilities, dedicated open teams, along, with, solid talent acquisition/retention, learning and development mechanisms, become crucial components. This paper shares novel academic and managerial implications on this dynamic co-dependence towards understanding the human side of open innovation and embracing open practices within financial services institutions.

Optimal execution strategy and liquidity adjusted value-at-risk

The value-at-risk (VaR) model has been implemented at major financial institutions as required by regulatory authorities, e.g. Basel Committee on Banking Supervision (2006), Basel Committee on Bank...

An examination of investors’ reaction to the announcement of CoCo bonds issuance: A global outlook

Major international financial institutions (FIs) are using contingent convertible (CoCo) bonds in the wake of the 2008 financial crisis to meet stricter national and international capital requirements. Beginning with UniCredit's €500m 9.375% CoCo in July 2010, more than 40 publicly held financial institutions headquartered in 16 countries have issued 68 CoCos. According to S&P's 2010 report, by the year 2020, CoCo bond volumes are expected to reach to $1 trillion. This paper examines investors’ reactions to the announcements of CoCo bonds issuances by FIs. Using event-study methodology and measuring cumulative abnormal returns (CARs) following the announcements, we find FIs generally experience negative abnormal returns during the post-announcement period; however, the investors’ reactions vary in a country-by-country analysis. These different reactions create opportunity for investors and issuers to launch global diversification and trading strategies.

Present at the confusion

Abstract By the fall of 1990 the economic position of the USSR had deteriorated to the point where the Gorbachev government sought the advice and assistance of the major Western international financial institutions: the International Monetary Fund, the Organisation for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the World Bank. These IFIs were asked to diagnose the situation and recommend measures to assist in the transition from plan to market. The reform of industrial and manufacturing enterprises was a key issue among the many analyzed. This article's author, from the World Bank, worked on the enterprise reform team. Drawing on extensive notes from 1990 and 1991 interviews with Soviet and Russian officials, reformers and enterprise managers, this article portrays in detail the extent of the economic — and political — dislocation of the Soviet Union in 1990, the acutely uncertain policy and legal environments in which enterprise managers and government overseers tried to function, and the various and sometimes desperate means by which those in the enterprise sector struggled to position themselves for survival in the newly emerging economy. A major theme is the widespread but ultimately fruitless effort on the part of the Soviet and then Russian reformers to find a gradualist, minimally painful way to carry out the transition of enterprises to market operations. One result of that failure was the much-criticized Russian privatization program. The conclusion is that for political as much as economic reasons, the pace of enterprise reform adopted was unavoidable.

Film and the financial city

Despite growing interest in the last few years among film-makers in tackling themes and stories related to the world of global finance, finding aesthetic means to depict the forces of contemporary capital has proven exacting. One route to understanding how the moving image makes sense of the current state of finance capital is to look at the way that specific financial hubs – significant banking cities that act as nodal points in the global economy in hosting major financial institutions and in initiating financial transactions – are registered on film. In this paper, I address the difficulties of constituting a financial aesthetic generally before looking at how the financial city plays a key role in allowing European film-makers working across very different modes to find a material architectural representation for the abstract exchanges of contemporary finance capital. I discuss Isaac Julien’s gallery film, PLAYTIME (2014) that features the financial hubs of the City of London, Reykjavik and Dubai, and also recent films set in Frankfurt, the financial centre of the Eurozone and Germany’s leading financial hub, The City Below (Christoph Hochhäusler 2010) and the documentary, Master of the Universe (Marc Bauder 2013).

Uses and Abuses of ARIMA in PPNR Modeling and Risk Management: Why Not to Fear ARIMA

Many forms of the ARIMA (auto-regressive integrated moving average) modeling method are used across risk management and specifically within PPNR (Pre-Provision Net Revenue) for CCAR (Comprehensive Capital Analysis and Review) and DFAST (Dodd-Frank Act Stress Testing). The ARIMA method allows for flexible modeling of PPNR and the inclusion of exogenous variables however model stability can be a concern. I argue that model instability is occurring because of improper ARIMA model development and the practice of forcing all data into the ARIMA framework. I apply a basic method of testing model stability over time and have chosen to model both Citigroup and the S&P 500 using Federal Reserve domestic data which is used in the actual CCAR and DFAST exercises. This paper aims to show common mistakes that occur throughout risk management from the perspective of model development, validation, implementation, and internal audit at major financial institutions.

La economía global en crisis: Un repaso sobre las causas, las respuestas y los aprendizajes

Este artículo hace un repaso de las diversas interpretaciones sobre las causas de la crisis financiera en 2008. Se explican los argumentos que apuntan hacia los cambios de actitud de los principales actores en el mercado y del contagio; se explican además las fallas del mercado como las causantes de la crisis. La creación de la crisis fue un proceso largo que fue precedido de un período donde la banca lanzó las innovaciones financieras para diversificar el riesgo de la cartera hipotecaria. La caída en los precios de las viviendas tuvo efectos sobre otros mercados. Llegó la crisis financiera y con ello la caída en el crédito y la quiebra de importantes instituciones financieras. El artículo hace un esbozo de las principales reacciones de la política económica frente a la crisis para concluir en los aprendizajes que resultan de la misma. En especial, se requiere que el sistema financiero vuelva a financiar la producción, mejorar el análisis del riesgo crediticio, aumentar la sensibilización del público sobre los instrumentos financieros, crear incentivos internos que también generen macro-resultados deseables; volver a la regulación de productos riesgosos.

TRC Networks and Systemic Risk

The authors introduce a new approach to identifying and monitoring systemic risk that combines network analysis and tail risk contribution (TRC). Network analysis provides great flexibility in representing and exploring linkages between institutions, but it can be overly general in describing the risk exposures of one entity to another. TRC provides a more focused view of key systemic risks and richer financial intuition, but it may miss important linkages between financial institutions. Integrating these two methods can provide information on key relationships between institutions that may become relevant during periods of systemic stress. The authors demonstrate this approach using the exposures of money market funds to major financial institutions during July 2011. The results for their example suggest that TRC networks can highlight both institutions and funds that may become distressed during a financial crisis.

Ethical banking in practice: a closer look at the Co-operative Bank UK PLC

Purpose– The main purposes of the study were to investigate the ethical banking operations based on the award-winning the UK Co-operative Bank which has successfully brought significant implications on sustaining the nation’s (the UK) socioenvironmental development. The Co-operative Bank operations are conceptualised into a solid ethical banking operations framework (EBOF) to contribute theoretically into enriching the body of the knowledge. Besides, by understanding the EBOF of an ethical banking system, the other banking players like the Malaysian bank can learn from this best practice and gradually shape its operation to become more ethical.Design/methodology/approach– The case study on the UK Co-operative Bank was based on primary data collected through a series of qualitative focus group conducted on 20 senior bank managers who were interested and were supportive of this research project. These experienced respondents are actively involved in the Co-operative Bank’s “Corporate Ethical Policy” formulation, as well as the implementation of this policy into the Co-operative Bank’s daily operations. Besides, secondary data are reviewed to obtain a more comprehensive understanding on the Co-operative Bank. The research began in December 2012 and was completed in August 2014. The main reason the researchers opted for qualitative studies is to comply with the criteria of inductive approach, whereby the final outcomes (EBOF) include the crystallisation of the ethical banking operations, which could be generalised theoretically and empirically.Findings– At the end of the study, EBOF based on the Co-operative Bank’s ethical operations (as the case studied) is constructed. As a conclusion, the Co-operative Bank has done tremendously well in sustaining the UK’s socioenvironmental development, which justifies the reason why the Co-operative Bank has won numerous prestigious awards and is being well recognised nationally and regionally.Practical implications– The novelty concept of ethical banking is driven by the global socioenvironmental initiative that influences some of the major financial institutions which are proactively and gradually shaping their corporate image in safeguarding the community around the environment. This research has successfully attained the ultimate objective to foster knowledge transfer through learning from the best (from the UK Co-operative Bank) in shaping local (Malaysia) ethical banking.Originality/value– This study constructs the EBOF based on the Co-operative Bank’s ethical operations that could be empirically disseminated and adopted in other banks’ operations (across the globe). This is aimed in shaping the local banking industry to become more ethical (learning from the best practice of the UK Co-operative Bank) in wealth creation that places high emphasis on socioenvironmental benefits rather than economic gain on profit maximisation alone. Besides, the EBOF contributes and enriches the body of the knowledge about ethical banking operations.

Guarantees and Capital Infusions in Response to Financial Crises A: Haircuts and Resolutions

After the mortgage market meltdown in mid-2007 and during the financial crisis in 2008, major financial institutions around the world were on the verge of collapsing one after another. Faced with these troubles, the government had to respond quickly to contain the crisis as efficiently as possible. It was, however, limited in resources, time and experience. To make matters worse, the complexity and opaqueness of the financial market and these institutions greatly affected the governments’ ability to design an efficient and consistent method to contain the crisis. Shortly after Lehman Brothers filed for bankruptcy on September 15, 2008, American International Group (AIG) was also in deep trouble and close to failure when the Federal Reserve decided to bailout the institution. Washington Mutual (WaMu) and Wachovia were also facing collapse due to their exposure in risky mortgage products around the same time. WaMu closed and the Federal Deposit Insurance Corporation (FDIC), appointed as a receiver. When the FDIC was appointed, the FDIC was able to arrange a transaction that protected all depositors in the bank and transferred all ongoing operations to JP Morgan Chase without any cost to the FDIC Deposit Insurance Fund. In contrast to WaMu, in the case of Wachovia the FDIC Board of Directors initially approved a sale of Wachovia through a closed bank resolution to Citigroup under the FDIC’s systemic risk authority. However, Wachovia’s Board of Directors subsequently decided to approve a sale – with no FDIC assistance – to Wells Fargo. This case provides details on the background and government response for each troubled financial institution during the financial crisis, and the rationale behind the design of each response.

Restructuring and Forgiveness in Financial Crises D: The Japanese Financial Crisis of the 1990s

In November 1997 the Japanese government confronted a problem of enormous proportions when the turmoil that had been roiling the financial markets since the collapse of a real estate and stock market asset bubble in 1990 reached a crescendo with the failure of four major financial institutions in quick succession in the space of a month. Prior to these failures, the damage done by the collapsing bubble had seemed to be limited to certain segments of the financial landscape, and the government’s response consisted largely of targeted intervention when necessary for clearly insolvent financial institutions, with a more comprehensive approach yet to be developed. Yet with the November 1997 failures it was clear that the damage was not limited and that the crisis in the Japanese financial system was reaching a systemic stage. Given that the frameworks developed during the early stages of the financial crisis were not designed with such failures in mind, initial efforts to assist these more major financial institutions were organized on an ad hoc basis while Japanese authorities simultaneously worked on developing a new framework. Ultimately, two pieces of legislation were enacted that would provide much of this framework – an act allowing for the temporary nationalization of systemically important banks for purposes of restructuring them and an act earmarking additional funds for bank recapitalization.

Whistleblowing and protection of whistleblowers in the bank: Legal and criminalistics aspects

Whistleblower protection as a legal conception, even as a concept in our legal practice in Serbia, is quite new. However, whistleblowing itself is not a new concept viewed from a criminalist and general legal standpoint. To raise your voice, or rebel against injustice in the collective where someone works in order to alert others to the dangers and risks, are proper human behavior and conduct. Such proper human conduct: to report corruption, threats to safety and health of people, or to disclose information of public interest should be protected, not only in public institutions but also in private companies. Instead of being grateful to those individuals (bank employees or customers of the bank) that provide such information and to act in an organized and systematic way in accordance with the law and internal regulations of the bank, we have often witnessed that in practice we disregard such information and that these persons - whistleblowers are discredited and punished, fired, reassigned to a less favorable workplace etc. Reporting on illegal behavior in the bank, corruption and other forms of criminal endangerment and unlawful operation of individuals or groups of people should be seen as an effective method in combating crime in the future. At the same time those who disclose such information should be protected and encouraged to do so and in the future. Whistleblower protection should foster and encourage all people in a group to engage in fighting all forms of crime and various types of irregularities. Whistleblowing in the bank is just a part of the story, only the beginning but not the end, because banks are major financial institutions where it is necessary to fight against corruption and various kinds of illicit behavior of employees as well as clients. Whistleblower protection is provided by law should increase the reputation of the bank and its reputation in the market, because by that employees and customers of the bank have better confidence in the legal system and greater security for all. This is a clear message to the environment that problems should be solved and so risks should be reduced to a minimum.

TRC Networks and Systemic Risk

We introduce a new approach for identifying and monitoring systemic risk that combines network analysis and tail risk contribution (TRC). Network analysis provides great flexibility in representing and exploring linkages between institutions, but can be overly general in describing the risk exposures of one entity to another. TRC provides a more focused view of key systemic risks fng with richer financial intuition, but it may miss important linkages between financial institutions. Integrating these two methods can provide information on key relationships between institutions that may become relevant during periods of systemic stress. We demonstrate this approach using exposures of money market funds to major financial institutions during July 2011. The results for our example suggest that TRC networks can highlight both institutions and funds that may become distressed during a financial crisis.

Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions: A Data Envelopment Analysis During 2006–13

ABSTRACTWe examine the determinants of efficiency and the total factor productivity (TFP) change of major financial institutions in Cambodia using data envelopment analysis (DEA). We apply two-stage bootstrapping estimation method to a panel data of twenty-seven financial institutions in the period of 2006–13. The empirical results reveal that the size and ownership structure of financial institutions are significantly correlated with the efficiency and TFP growth of banks. The efficiency of domestic institutions is found to be better than that of their foreign counterpart, and there is no significant difference in TFP growth between domestic and foreign institutions.