Bank Structure Research Articles

Revisiting the relationship between board structure and bank performance in Ethiopian commercial banks

Revisiting the relationship between board structure and bank performance in Ethiopian commercial banks

GMINNY CREDIT AND SAVINGS BUREAUS ON THE TERRITORY OF THE WEST BELARUSIAN REGION (1921–1939)

The purpose of the study is to study the main activities of the gminas credit and banking institutions on the territory of Western Belarus in the period of the 1920s – 1930s.
 The article deals with the issues of legislative registration of the grassroots credit and banking structure of the second Polish Republic, represented by gminny cash registers, the formation of the structure of the largest institutions of this type, as well as the conditions and problematic moments in the formation of a network of gminny cash registers in the region; the main directions and forms of their work among the population of the region, the conditions for the provision of credit resources, the acceptance of borrowed funds. Statistical data on the activities of gminn credit and savings institutions, the number of branches are given. In conclusion, the state and problems of the activities of gminn credit institutions in the West Belarusian region are analyzed.
 The results obtained can be used in the study of the economic history of Belarus of the twentieth century.

THE EFFICIENCY OF THE NETWORK ORGANIZATIONAL STRUCTURE OF COOPERATIVE BANKS

The paper proposes an empirical investigation of scale economies, scope economies, and market power of the network organizational structure of Italian cooperative banks. For 452 cooperative banks (and a control group of 223 commercial banks) over 2006–2018, empirical findings show that cooperative banks experienced cost economies of scale and scope, but they experienced scale diseconomies and constant scope economies on the revenue side. Unlike commercial banks, cooperative banks did not seem to benefit on the earnings side from increases in scale and diversification. Moreover, cooperative banks experience greater market power than commercial banks. Traditional advantages, in terms of network economies and relationship lending, are proven empirically to persist for the network organizational structure.

Pengaruh Karakteristik Internal, Tingkat Profitabilitas, Dan Dana Syirkah Temporer Terhadap Struktur Modal Perbankan Syariah di Indonesia

This study aims to determine the effect of asset structure, company growth, liquidity, firm age, level of profitability, and temporary syirkah funds on the capital structure of Islamic banking in Indonesia. The population in this study are all banking companies registered with the Otoritas Jasa Keuangan in 2016-2020, namely 14 companies. By using a purposive sampling technique, there are nine sharia commercial banks that will be sampled in this study. This type of research is quantitative research using secondary data, namely annual reports of Islamic commercial banks and data analysis techniques with multiple linear regression using the SPSS 23 application. The results show that profitability and liquidity have a significant and negative effect on capital structure. Meanwhile, asset structure, company growth, company age, and temporary syirkah funds have no effect on capital structure.

Network vs integrated organizational structure of cooperative banks: Evidence on the Italian reform

We empirically investigate the impact of the regulatory change from a network organizational structure to an integrated one on scale economies, scope economies, and market power in cooperative banks. We exploit the passage of the Italian cooperative bank reform in 2016. Using a difference-in-differences identification strategy, we examine a treated group of 424 cooperative banks and a matched control group of 192 commercial banks over the period 2009–2019. Our findings indicate that cost scale and scope economies of cooperative banks are positively affected by the reform, while their profit scale and scope economies are not affected. Lastly, the Lerner Index is positively affected by the reform. Overall, the reform enhances cooperative banks' ability to exploit advantages related to a larger size and diversification.

Syariah Governance and Disclosure Islamic Corporate Social Responsibility: A Comparative Study of Indonesian and Malaysian Islamic Banking

The existence of the Sharia Supervisory Board in the Sharia banking GCG structure is a unique feature that distinguishes it from the GCG structure of conventional banks. The inconsistency of the results of previous research related to the relationship between GCG and CSR disclosure is the motivation of this study, in addition to the differences in the progress of Indonesian and Malaysian Islamic banks. The research population of Islamic banking is listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange. Research period on 2016 – 2019 before covid 19 pandemic. The research sample was determined based on purposive sampling, 12 Islamic banks in Indonesia and 14 Islamic banks in Malaysia was selected. The method of analysis is multi group using Partial Least Squares. The results of this study provide empirical evidence that the Sharia Supervisory Board, Board of Commissioners and Board of Directors have not succeeded in playing a role in increasing I-CSR disclosure except for the Independent Board of Commissioners and Independent Board of Directors. The results of the study also have not shown any differences in the influence of GCG on I-CSR in Indonesian and Malaysian Islamic banking.

Dampak Kepatuhan Syariah terhadap Kinerja Keuangan Bank Syariah: Studi Kasus pada Struktur Pengawasan dan Manajemen Risiko

Shariah compliance is important for Islamic banks because it is one of the factors that determines their financial performance. This study aims to analyze the impact of shariah compliance on the financial performance of Islamic banks, with a case study on the supervisory structure and risk management. This study uses a case study method with three Islamic banks in Indonesia as the object of study. The data used in this study is secondary data obtained from the annual reports of these Islamic banks. The results of the study show that shariah compliance has a positive impact on the financial performance of Islamic banks. This impact can be seen from several aspects, including: Profitability: Islamic banks with high shariah compliance have better profitability than those with low shariah compliance, Liquidity: Islamic banks with high shariah compliance have better liquidity than those with low shariah compliance, Risk: Islamic banks with high shariah compliance have lower risk than those with low shariah compliance. Shariah compliance also has a positive impact on the supervisory structure and risk management of Islamic banks. This impact can be seen from several things, including: Supervisory structure: Shariah compliance can enhance the role of the Shari'ah Supervisory Board (SSB) in overseeing the business activities of Islamic banks, Risk management: Shariah compliance can enhance the role of the risk unit in managing risks related to shariah compliance. Based on the results of this study, it can be concluded that shariah compliance is an important factor that determines the financial performance of Islamic banks. Strong supervisory and risk management structures can help Islamic banks to improve shariah compliance and, ultimately, improve their financial performance.

THE OLDEST TRANSPORT ARTERY OF SCYTHIA (Lower Hypanis — middle course of Borysthenes Track)

The article examines the connection between the archaeological sites of the pre-Scythian and Scythian times and the key watersheds of Right Bank Ukraine, as routes of potential overland communications that used to move goods in ancient times. One of the impetuses for turning to this topic was the discovery of four archaic amphorae (one whole from Klazomenai, others from Lesbos) at the recently discovered Khotynets hillfort in Poland, which is located in the extreme west of the country of the Early Iron Age hillforts of southern Eastern Europe. These finds of amphora containers in the area of Vyshnia and San valleys convincingly testify that trade caravans could reach this distant region from the Black Sea coast using only the land route. For its time, land communications were optimal, as they provided relatively reliable movement with a heavy load, along a path practically devoid of sharp descents and ascents.
 Key attention in the article is given to one of the most ancient routes that connected the northern coast of the Black Sea with settlement structures in the Middle Dnieper region. The extreme points in this transport system were pre-Scythian hillforts — Dykii Sad located at the confluence of the Ingul and Southern Bug rivers and its potential northern partner Subotivske in the Tiasmin basin. During the Scythian rule in the Black Sea steppes, this route continued to be actively used. However, over time, the final trade terminals changed, and the route of trade caravans remained. Merchants from Olbia and the harbors of the northern coast of the Black Sea used the eastern edge of the Southern Bug basin as a reliable route to the fortified settlement structures of the forest-steppe Right Bank, among them Matronynske and the Trakhtemyrivske hillforts.
 Given the shallow depths near the coast of Olbia, the authors consider the harbour of the little-explored ancient hillfort of Hlyboka Prystan as a likely place for unloading sea vessels with a deep draft. From this harbour opened a convenient way to the hillforts of the Forest Steppe, just using the oldest transport artery of Scythia.

Vibration-based looseness identification of bolted structures via quasi-analytic wavelet packet and optimized large margin distribution machine

Bolted joints are the most widely utilized connection types in industries, and therein looseness identification of bolted structures is of great significance to guarantee structural reliability. In this article, a comprehensive study of bolt looseness identification under random excitation is presented. To fulfill this task, this research focuses on three prominent difficulties, including nonstationary signal processing, subtle feature extraction, and robust state classification. First, a novel filter bank structure of quasi-analytic dual-tree complex wavelet packet transform is constructed to analyze the measured vibration response signals, for purpose of capturing subtle feature information. Then, multiple features are extracted from subband signals to capture the variations of dynamic characteristics, and sensitive features are selected by Laplacian score to construct the low-dimensional feature set. Subsequently, a novel classifier with better generalization performance, named large margin distribution machine, is optimized with the wavelet kernel function and the whale optimization algorithm, in order to handle the intrinsic uncertainty related to the looseness states of bolted structures. After feeding the low-dimensional feature set, the proposed classifier is trained to identify looseness states of bolted structures. Finally, experiments of a two-bolt lapped beam under random excitation are conducted to verify the effectiveness of the proposed method, and two typical loading conditions (paired-bolt looseness and single-bolt looseness) are considered. Besides, the superiority of the proposed method is demonstrated by comparing with other analogical methods. This research can provide a promising implement in practical applications of bolt looseness identification under random excitation.

Terrorism and economic governance in Africa: analysis of the impact of Boko-Haram on banking administration in Nigeria

Purpose Using system theory, this paper aims to interrogate the impact of Boko-Haram on bank administration. The paper explains how death, injury and property destruction caused by terrorism affect banking supervision and structures. Design/methodology/approach With the aid of a mixed research method, this paper conducted 47 interviews. It extracted secondary data from the Central Bank of Nigeria database, the National Deposit Insurance Corporation publications, Enhancing Financial Innovation and Access Survey, the World Bank database and the Global Terrorism Index. Descriptive, content and regression analysis was used in this research. Findings With a significant regression model (p-value < 0.05), the analysis shows that terrorism accounts for 84.02% variation in banking administration. The impact of Boko-Haram on banking administration is negatively significant, especially in the areas like on-site supervision of Money Deposit Banks/Micro-finance Institutions and citizens’ accessibility to financial systems. Originality/value This paper generates new knowledge in the thematic area, which is still grey. The influence of terrorism on financial institutions as an element of economic governance is less researched. Hence, the strategic linkage of the impact of Boko-Haram on banking administration as a component of financial institutions. Therefore, this paper contributes to the existing body of literature on terrorism and economic governance.

Optimal Capital Structure and Risk Management Policies of Banks That Use CoCo Futures to Hedge Financial-Sector Risk

Abstract We investigate the joint optimal risk management and capital structure decisions of banks when they use contingent-convertible (CoCo) futures contracts to hedge financial-sector risk. In spite of banks choosing significantly higher leverage ratios, their default probabilities drop appreciably while their equity values increase, allowing banks to compete more favorably with the shadow-banking system. Banks’ value-maximizing decision to hedge financial-sector risk unintentionally leads to an economy with extremely low aggregate bank default rates across all future states of nature. Thus, CoCo futures offer a powerful microprudential and macroprudential policy tool. That banks choose not to hedge financial-sector risk in practice is consistent with managers internalizing bank bailouts.

Causes and Solutions for the Mal-operation of Differential Pressure Protection of Substation

The capacitor compensation circuit of the traction substation is affected by high-harmonics and the differential voltage protection is frequently mal-operation, which causes serious disturbance to the railroad transportation order. In this paper, the effect of parasitic inductance of capacitor banks and the parameter characteristics under high harmonics are analyzed by establishing the high-frequency circuit structure of capacitor banks. Then, a fitting formula describing the differential voltage is established based on the measured data to describe the frequency variation characteristics of the differential voltage value. Finally, a solution to the problem of differential voltage protection mal-operation of capacitor banks is discussed, a Resistance-Capacitance filter circuit is designed, and the effectiveness is verified by simulation.

Implementation of the ESG agenda in the banking sector: Overview of Russian practice

Subject. The article considers the process of ESG transformation and integration of ESG principles in the Russian banking sector. Objectives. The purpose of the study is to assess the current state of ESG transformation and develop the ESG agenda in the Russian banking sector. Methods. The study employs publications of Russian and foreign scientists on ESG issues, analytical materials of RAEX-Europe rating agency, development strategies of individual credit institutions. Based on the SWOT analysis, we identified strengths, weaknesses, opportunities, and threats of ESG transformation in the banking sector. Results. The paper describes the main directions of ESG transformation of the Russian banking sector, experience of the largest Russian banks in implementing ESG principles in their activities and development strategies, and their positions in ESG ratings. We diagnosed advantages and disadvantages, risks and opportunities for ESG principles implementation in the activities of Russian banking structures, prepared a matrix of relevance for Russian commercial banks in achieving Sustainable Development Goals established by the UN (UN SDGs). Conclusions. The findings can be useful for banking structures to generate sustainable development strategies and implement ESG transformation of business models, as well as for the professional community interested in promoting ESG principles.

The Determinants of Growth In Banking Sector: Time Series Analysis of Conventional And Islamic Banking In Pakistan

A well-developed financial and banking system efficiently transformssavings into investments. The banking system of Pakistan is based on a dual structure of conventional and Islamic banking. The current study aims to identify the factors that determine growth in the banking industry of Pakistan, keeping in view both conventional and Islamic banking. For this purpose, the ARDL model was applied on the time series data of Pakistanfor the period 2007-2022. The data was taken from the State Bank of Pakistan (SBP). The variable ‘investment’ was used as a proxy to measure growth in the banking sector, comprising both conventional and Islamic banking sectors. The results of the empirical analysis indicated that growth in deposit, growth in GDP, and population growth are the main determinants of growth in the banking sector of Pakistan. Based on the findings of the study it is suggested that measures must be taken to increase deposits in both systems of banking by giving various incentives to households.

Fine tuning rigid body docking results using the Dreiding force field: A computational study of 36 known nanobody-protein complexes.

This paper aims to understand the binding strategies of a nanobody-protein pair by studying known complexes. Rigid body protein-ligand docking programs produce several complexes, called decoys, which are good candidates with high scores of shape complementarity, electrostatic interactions, desolvation, buried surface area, and Lennard-Jones potentials. However, the decoy that corresponds to the native structure is not known. We studied 36 nanobody-protein complexes from the single domain antibody database, sd-Ab DB, http://www.sdab-db.ca/. For each structure, a large number of decoys are generated using the Fast Fourier Transform algorithm of the software ZDOCK. The decoys were ranked according to their target protein-nanobody interaction energies, calculated by using the Dreiding Force Field, with rank 1 having the lowest interaction energy. Out of 36 protein data bank (PDB) structures, 25 true structures were predicted as rank 1. Eleven of the remaining structures required Ångstrom size rigid body translations of the nanobody relative to the protein to match the given PDB structure. After the translation, the Dreiding interaction (DI) energies of all complexes decreased and became rank 1. In one case, rigid body rotations as well as translations of the nanobody were required for matching the crystal structure. We used a Monte Carlo algorithm that randomly translates and rotates the nanobody of a decoy and calculates the DI energy. Results show that rigid body translations and the DI energy are sufficient for determining the correct binding location and pose of ZDOCK created decoys. A survey of the sd-Ab DB showed that each nanobody makes at least one salt bridge with its partner protein, indicating that salt bridge formation is an essential strategy in nanobody-protein recognition. Based on the analysis of the 36 crystal structures and evidence from existing literature, we propose a set of principles that could be used in the design of nanobodies.

An Analysis of the Performance of Banks: A Comparative Study of Domestic and Foreign Banks in Zambia

Foreign-owned banks in Zambia have a commanding share of the industry’s profitability, averaging 82.6% between 2016 and 2018, leaving only 17.4% of the industry’s profits for the local banks and thereby resulting in huge externalisation of the financial sector’s profits.The study aimed to provide a comparative analysis of foreign and domestic banks’ profitability in Zambia with regards to the debt component of their capital structure and the impact of leverage on the performance of banks in Zambia over a ten year period. The study used a sample of 10 Commercial banks in Zambia and used a descriptive research methodology and a mixed research approach. The annual reports and financial statements of ten different banks were reviewed to extract secondary data between 2010 and 2020. The study found that there is a statistically stark difference in the capital structures of foreign and local commercial banks, with foreign-owned banks being more adequately capitalized and relying less on wholesale funding (leverage) as compared to local banks. The study further found that leverage has a substantial impact on a bank’s financial performance.

Financial Structure and Dividend Policy of Commercial Banks Listed at Nairobi Security Exchange, Kenya

Financial Structure and Dividend Policy of Commercial Banks Listed at Nairobi Security Exchange, Kenya

Using Multiscale Simulations as a Tool to Interpret Equatorial X-ray Fiber Diffraction Patterns from Skeletal Muscle.

Synchrotron small-angle X-ray diffraction is the method of choice for nm-scale structural studies of striated muscle under physiological conditions and on millisecond time scales. The lack of generally applicable computational tools for modeling X-ray diffraction patterns from intact muscles has been a significant barrier to exploiting the full potential of this technique. Here, we report a novel "forward problem" approach using the spatially explicit computational simulation platform MUSICO to predict equatorial small-angle X-ray diffraction patterns and the force output simultaneously from resting and isometrically contracting rat skeletal muscle that can be compared to experimental data. The simulation generates families of thick-thin filament repeating units, each with their individually predicted occupancies of different populations of active and inactive myosin heads that can be used to generate 2D-projected electron density models based on known Protein Data Bank structures. We show how, by adjusting only a few selected parameters, we can achieve a good correspondence between experimental and predicted X-ray intensities. The developments presented here demonstrate the feasibility of combining X-ray diffraction and spatially explicit modeling to form a powerful hypothesis-generating tool that can be used to motivate experiments that can reveal emergent properties of muscle.

Project Management in Central Banks

Abstract In this ever-changing environment of technological innovations central banks are strongly committed to fulfilling their key objectives of preserving monetary and financial stability, but also make efforts to adapt to new market requirements. On the path of technological transformation of financial systems, central banks face many challenges stemming from, inter alia, new less regulated and decentralized financial innovative services, cyberattacks, and endangered cyber security. Central banks need strong project management to successfully address these processes and that should be done in line with the highest international standards. The paper analyses the implementation of project management in central banks according to the international standards. The authors present possible division of roles and responsibilities in the project organization structure in central banks based on these international standards. The standardized integrated project management activities and associated practices are described and presented in the context of project management in central banks. The authors conclude that the application of international standards is crucial for successful project management in central banks in order to ensure that the projects are implemented on time and within the envisaged scope and budget, thereby ensuring high quality results, efficient deployment of human resources, benefits realization and value creation for the organization.

Responses of investors to earnings announcement: does the type of ownership holdings in banks matter?

PurposeThis study examines the influence of the ownership structure of banks on investors' behavior by dissecting the investors' response to news regarding performance indicators in private and government-owned banks.Design/methodology/approachThe event study methodology is used for the analysis. The data for 35 banks (out of 38), listed on the National Stock Exchange (NSE) for a duration of 230 months (January 2001 to February 2020) is collected. A set of cross-sectional regression analyses is done to identify variables influencing the returns under differential circumstances.FindingsPrivate banks seem to display a sharper response to negative changes in earnings, while government-owned banks show a more robust reaction to a positive change. The contrast is seen in the variables, having a bearing on the abnormal returns After controlling for a set of factors, the regression analysis shows the ownership structure may not matter on abnormal returns (on event day), the factors such as a change in quarterly earnings, firm-size and three-year average-sales growth influence the positive and negative changes in abnormal returns of government banks, and predictability for private banks is found to be poor regarding selected indicators.Originality/valueThe study evaluates the role of ownership structure on the heterogeneity in investors' responses to the financial performance of banks, thereby assisting in designing strategies to ensure the optimal outcome around the quarterly earnings announcements.