To see the other types of publications on this topic, follow the link: Investment Banks and banking.
Journal articles on the topic 'Investment Banks and banking'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Investment Banks and banking.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Ordoñez, Guillermo. "Sustainable Shadow Banking." American Economic Journal: Macroeconomics 10, no. 1 (January 1, 2018): 33–56. http://dx.doi.org/10.1257/mac.20150346.
Full textAbstract:
Banking regulation is beneficial because it constrains banks' portfolios to prevent excessive risk taking. But given that regulators usually know less than a bank about its investment opportunities, regulation comes at the cost of foregoing profitable investments. I argue that shadow banking improves welfare because it provides a channel to escape excessive regulation that is asymmetrically more valuable for banks with access to efficient investment opportunities. I propose a novel intervention that improves welfare further by taxing shadow activities, subsidizing regulated activities and allowing banks to self-select into being regulated or not. (JEL D82, G21, G28, G31, G32, L25)
2
Medynska, T. V., N. M. Rushchyshyn, and U. M. Nikonenko. "Tax Regulation of Investment Activity of Ukrainian Banks." Business Inform 11, no. 514 (2020): 316–24. http://dx.doi.org/10.32983/2222-4459-2020-11-316-324.
Full textAbstract:
The article is aimed at researching the tax regulation of investment activity of banks of Ukraine in the current conditions of development of the national economy; identifying the tax stimuli and deterrent factors of investment activity of banking institutions in the formation of investment portfolio. Tax regulation of the banking system directly influences the development of not only the monetary system, but also the national economy in general. Tax instruments for stimulating investment activity of banks are proposed to be grouped depending on the mechanism of influence, goals and types of investments. The dynamics of investments and their share in the assets of Ukrainian banks over the past five years are analyzed. The annual advance in the share of investments in the assets of Ukrainian banks shows an increase in the interest of banks in placing funds into investment objects. The assessment of the change in the composition and structure of the investment portfolio of Ukrainian banks for 2015–2019 was carried out, identifying that domestic banks focused on improving the liquidity of investments, i. e., financial instruments that can be sold at any time at favorable prices. The dynamics of the composition and structure of the portfolio of securities of domestic banks in recent years was researched, determining that the largest share for 2015–2016 made the securities for sale (more than 86%), while the securities before maturity amounted to more than 10%. When considering the structure of the portfolio of securities of banks during 2017-2019, it is specified that the most important is the proportion of investments in securities, which are accounted for at fair value through other comprehensive income, namely, more than 70%. Having examined the problems of domestic banking investment, we believe that stimulation in this direction should be carried out in terms of creating a favorable stable regulatory framework and an effective taxation regime.
3
Medynska, T. V., N. M. Rushchyshyn, and U. M. Nikonenko. "Tax Regulation of Investment Activity of Ukrainian Banks." Business Inform 11, no. 514 (2020): 316–24. http://dx.doi.org/10.32983/2222-4459-2020-11-316-324.
Full textAbstract:
The article is aimed at researching the tax regulation of investment activity of banks of Ukraine in the current conditions of development of the national economy; identifying the tax stimuli and deterrent factors of investment activity of banking institutions in the formation of investment portfolio. Tax regulation of the banking system directly influences the development of not only the monetary system, but also the national economy in general. Tax instruments for stimulating investment activity of banks are proposed to be grouped depending on the mechanism of influence, goals and types of investments. The dynamics of investments and their share in the assets of Ukrainian banks over the past five years are analyzed. The annual advance in the share of investments in the assets of Ukrainian banks shows an increase in the interest of banks in placing funds into investment objects. The assessment of the change in the composition and structure of the investment portfolio of Ukrainian banks for 2015–2019 was carried out, identifying that domestic banks focused on improving the liquidity of investments, i. e., financial instruments that can be sold at any time at favorable prices. The dynamics of the composition and structure of the portfolio of securities of domestic banks in recent years was researched, determining that the largest share for 2015–2016 made the securities for sale (more than 86%), while the securities before maturity amounted to more than 10%. When considering the structure of the portfolio of securities of banks during 2017-2019, it is specified that the most important is the proportion of investments in securities, which are accounted for at fair value through other comprehensive income, namely, more than 70%. Having examined the problems of domestic banking investment, we believe that stimulation in this direction should be carried out in terms of creating a favorable stable regulatory framework and an effective taxation regime.
4
Trimulato, Trimulato. "Sharia Bank Product Development through Mudhrabah Investment." Shirkah: Journal of Economics and Business 1, no. 3 (December 31, 2016): 311. http://dx.doi.org/10.22515/shirkah.v1i3.24.
Full textAbstract:
Sharia banking now has a strong legal framework with the presence of law number 21 of 2008 on sharia banking in Indonesia. This regulation enforces sharia banking to develop products to achieve the targeted market share of 5%. In third-party fund products, more innovation is needed to attract people to entrust their funds in sharia banks. The visible data of mudharabah fund raising deposit products in March 2013 amounted to Rp100.746.000.000 and Rp115.728.000.000 in mudharabah deposits was visible on April 2014, which is an increase of less than 2% each month. This research uses a qualitative descriptive methodology, and is focused on fund raising products in shari'ah banking, particularly in the form of mudharabah investments for a definitive result. The results show that sharia banking requires innovative fund raising for third-party products, such as mudharabah investment products. These investments provide certainty of results despite using mudharabah and are based on the certainty that projector financing has been agreed by the sharia with the creditor banks. This investment product can be offered to both individuals and groups/collectives.Keywords: sharia banking, investment, mudharabah
5
Arshad, Noraziah Che, Roza Hazli Zakaria, Ahmad Azam Sulaiman @ Mohamad, and Tubagus Thresna Irijanto. "Determinants of Displaced Commercial Risk in Islamic Banking Institutions: Malaysia Evidence." TRIKONOMIKA 13, no. 2 (December 14, 2014): 205. http://dx.doi.org/10.23969/trikonomika.v13i2.615.
Full textAbstract:
Islamic banks are exposed to a unique risk such as Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment account holders funds, in order to increase the return to the investment account holders. In a dual banking system, DCR could be a threat to the Islamic banks given the competition of fixed and higher return from the conventional banks. However, DCR would not be a threat to Islamic banks if their account holders choose Islamic banks due to religious obligatory factor. Pertaining to this issue, this paper aims to identify the determinants of factors influencing the DCR among the Islamic banks in the case of Malaysia. Results of the study suggest that the DCR is significantly determined by the Investment account holder funds, Islamic deposit, rate of return, and interest rate.
6
Spahija, Fidane. "The Investment and Net Interest Margin: Case Study Commercial Banks in Kosovo." European Journal of Multidisciplinary Studies 1, no. 2 (April 30, 2016): 117. http://dx.doi.org/10.26417/ejms.v1i2.p117-126.
Full textAbstract:
In Kosovo, but in all developing countries, the foreign investment is the locomotive of the country that considered as the most important economic sectors. In general it can be concluded that most of the investment originates from developed countries and that these investments return to these places. Origin of investments in Kosovo mainly comes from countries such as Austria, Germany, Slovenia, Great Britain, Switzerland, Turkey, the Netherlands, Albania, Serbia, USA, France, Macedonia, Croatia, Cyprus, Norway, Italy, Greece etc. The banking sector in Kosovo has been very attractive to the foreign investors. A total of nine commercial banks, seven are foreign owned. Foreign investments are primarily generated as investments in shares of foreign shareholders from different countries of the world. Investments in securities have increased by the banking sector in 2014. With the change of the interest rate it has also changed net interest margin of the banking sector. Interest on loans and deposits has continued to decline. Especially interest rates on deposits in 2014 have fallen to 1. 1%. This linked to the investment bank in securities of our government as the initiator in this area but cannot be denied to the investment of foreign governments. With the decrease of credit interest rate will be the development of sustainable economic growth and boost investment.
7
Егорова, Д. Е., and А. К. Семеняк. "Инвестиционная деятельность банков на рынке ценных бумаг." ТЕНДЕНЦИИ РАЗВИТИЯ НАУКИ И ОБРАЗОВАНИЯ 70, no. 7 (2021): 132–37. http://dx.doi.org/10.18411/lj-02-2021-278.
Full textAbstract:
Modern banking involves investment. Investment is an economic category characterized by a number of features. The types and forms of investment are diverse and can be transformed taking into account the state of the economy and the level of development of industrial relations. The faster growth of the financial sector in the economy led to the development of financial investments. Banks as financial and credit organizations are actively making financial investments in securities using Internet banking tools. Banks' investments in securities pursue a number of goals that determine the choice of securities for investment and their quality. The article examines the theoretical aspects of the investment activity of the banks of the Russian Federation and its impact on the stability of the banking sector as a whole, studies the issues of its classification, presents the author's position on the essence of the problem under study. Also, based on the analysis of actual data for 2014-2019, the target indicators of bank investments in securities and their development trends in modern conditions were determined. Official data of the Central Bank of the Russian Federation (Bank of Russia) and the Federal State Statistics Service were used as an information base for the study.
8
Wang, Boge. "Research on Business Opportunities of International Investment Banks in China." E3S Web of Conferences 235 (2021): 01050. http://dx.doi.org/10.1051/e3sconf/202123501050.
Full textAbstract:
As China’s capital market deepens reforms, international investment banks are also seeking further opportunities for business development in China. This article first introduces the corresponding overview of China’s investment banking business and international investment banks, and analyzes the development of China’s investment banking market from the four markets of IPO, equity refinancing, M&A and restructuring and debt financing, and then from business contract, undertaking and sales, it analyzes the advantages and disadvantages of international investment banks. It is concluded that under the background of the continuous expansion of the China’s investment banking business market, there are certain opportunities and development prospects for the development of international investment banks in China, but their operations need to be further improved. Based on this, relevant suggestions are proposed for international investment banks to operate in China.
9
Prabhu, J. Jose. "A Study and Analysis of Investment Banking and Regional Development Among European Economy." Financial Markets, Institutions and Risks 5, no. 2 (2021): 107–13. http://dx.doi.org/10.21272/fmir.5(2).107-113.2021.
Full textAbstract:
Investment banks are financial intermediaries that specialize in the sale of securities and the issuance and underwriting of new shares to raise capital financing. Investment banking is a special segment of banking that assists individuals or organizations to raise capital in the main market. In the tea market, new securities are issued and act on behalf of customers, thus playing an important role in the secondary market. Investment banks undertake new debt or equity securities for all types of businesses, support the sale of securities, and facilitate mergers and acquisitions by institutional and individual investors. Investment banking organizations act as intermediaries between investors and capital markets. Investment banks are becoming important in European capital markets due to many factors including the perception of investment banks among investors and the various other functions implemented by investment banks. The research paper aims to show the role of investment banks in the current scenario. This study is descriptive in nature and uses auxiliary data. The study reveals the growth, development, function and role of investment banking in the European economy. The main objective of this investigation is to clarify how investment banks play a role in increasing a country’s resources and economic growth. It analyzes the various functions performed by investment banks. Investment banks connect the people who sell securities with their investors. Investment banks add liquidity to the market. Investment banks promote savings and investment and eliminate capital shortages. Mobilize small, scattered savings in the community so you can invest in productive businesses. He concluded that the role of investment banks in economic development is important.
10
Karkowska, Renata. "Model of Risk Diversification in the Banking Sector." Folia Oeconomica Stetinensia 19, no. 1 (June 1, 2019): 31–42. http://dx.doi.org/10.2478/foli-2019-0003.
Full textAbstract:
Abstract Research background: Motivation for this study is the rapid development of conglomerate banking stimulated by the synergy between the traditional and parallel investment activity of banks before the 2007–2008 financial crisis. Existing studies do not answer the question about the positive influence of diversification on bank stability. They state that the combination of lending and non-interest income allows benefits to be derived from risk diversification. However, on the other hand they emphasise that non-interest and interest incomes are strongly correlated, which does not bring positive effects from diversification. Purpose: Scientific problem aimed to be solved is to verify how the diversification of activities in commercial banks into non-interest products (i.e. trading, securities-based investment activities, and derivatives) brings positive effects such as income stabilization and risk reduction. We examine the implications of banks’ risk adjusted ROA that manifest themselves as spreading and growing instability. Research methodology: We use a panel regression model, through a dataset that covers 777 international banks, in 91 selected countries of the world, spanning the period of 1996–2015. Results: We document that the diversification of a bank’s operations is varied and depends on a bank’s characteristics, including asset size. Novelty: The study contributes to the on-going discussion on the separation of retail and investment banks with a view to enhancing their profit stability.
11
Yuldashev, Sherzod. "SOURCES OF BANKING RESOURCES FOR INVESTMENT ACTIVITY." INNOVATIONS IN ECONOMY 4, no. 3 (April 30, 2020): 91–96. http://dx.doi.org/10.26739/2181-9491-2020-4-11.
Full text
12
Jiang, Shanshan, and Hong Fan. "Systemic Risk in the Interbank Market with Overlapping Portfolios." Complexity 2019 (April 16, 2019): 1–12. http://dx.doi.org/10.1155/2019/5317819.
Full textAbstract:
The increasing frequency and scope of the financial crisis have attracted more attention in the research of the systemic risk of banking system. A new model for the interbank market with overlapping portfolios is proposed to simulate a banking system in this work. The proposed model uses a bipartite network of banks and their assets to analyze the impact of bank investment on the stability of the banking system. In addition, this model introduces investment risk and allows banks to make up for liquidity by selling devaluated assets, which reflects the operating rules of the banking system more realistically. The results show that allowing banks to sell devaluated assets to make up for liquidity can improve the stability of the banking system and the interbank market can also improve the stability of the banking system. For the investment of banks, the investment risk is an uncertain factor that affects the stability of the banking system. The proposed model further analyzes the impact of average investment interest rate, savings interest rate, deposit reserve ratio, and investment asset diversity on the stability of the banking system. The model provides a tool for policy-makers and supervision agencies to prevent the systemic risk of banking system.
13
Abubakar, Abbas Said, and Dr Josiah Aduda. "ISLAMIC BANKING AND INVESTMENT FINANCING: A CASE OF ISLAMIC BANKING IN KENYA." International Journal of Finance 2, no. 1 (January 23, 2017): 66. http://dx.doi.org/10.47941/ijf.42.
Full textAbstract:
Purpose: The purpose of this study was to establish the effect of Islamic banking on investment financing in Islamic banks in Kenya.Methodology: This study employed descriptive survey design. The population of this research consisted of 8 commercial banks offering Shariah compliant products. The study used secondary data for the period 2009 to 2012. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results were presented in frequency tables and figures. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings indicated that there were various Islamic banking products that Islamic banks used to finance their investments. This included motor vehicle financing, mortgage financing, asset financing, real estate financing, trade financing and SME financing. The study also indicated that there were various modes of financing used by Islamic banking such as profit and loss sharing, Ijara and murahaba. Regression results revealed that motor vehicle financing was statistically significant in explaining loans advanced to customers in Islamic banks. However mortgage financing, asset financing, real estate financing, trade financing and SME financing were not statistically significant in explaining loans advanced to customers in Islamic banks but they were positively correlated.Unique contribution to theory, practice and policy: The study recommends that the management of the banks to get well equipped and competent employees on Islamic banking products as most Islamic banks are currently managed by people who have been educated and trained in the conventional banking system. Thus, more time may be required for the unique characteristics of Islamic financial instruments to be completely accepted and understood by both bank personnel and customers. It is also recommended that the terms and conditions of acquiring a loan be made more appealing and considerate for more investors to approach the banks for assistance as the Shari`ah restricts the type of businesses for which Islamic banks can provide financing.
14
Morhachov, I., Ie Ovcharenko, О. Oviechkina, V. Tyshchenko, and O. Tyshchenko. "ASSESSMENT OF US BANKING SECTOR INVESTMENT ATTRACTIVENESS FOR MINORITY INVESTORS: THEORETICAL-APPLIED ASPECT." Financial and credit activity: problems of theory and practice 3, no. 38 (June 30, 2021): 56–65. http://dx.doi.org/10.18371/fcaptp.v3i38.237419.
Full textAbstract:
Abstract. The aim of the work is to prove the appropriateness for minority investors of investing in shares of US banks only with speculative, and not investment intentions; identifying the reasons why long-term investment in the sector is not appropriateness in the presence of a fundamental enabling environment for its development. In the article, the US banking sector is considered as an object of long-term investment for investors who plan to be only minority shareholders, including for citizens of Ukraine. The main research methods in the paper are a graphical analysis of the dynamics of share prices of key US banks and determine the average annual growth rate of the market value of their shares. This average annual growth rate of the value of shares of the respective banks was compared with the dynamics of the stock index S & P-500. The sector is characterized by favorable conditions for development, but the paper proves the hypothesis of the feasibility of investing in shares of US banks only with speculative rather than investment intentions. The factors of inexpediency of long-term investment in this sector in the presence of fundamental favorable conditions for the development of the sector in the country are specified. It is determined that the speculative nature of investments in the US banking sector is due to the lack of sustainable long-term growth of shares of the respective banks at a rate exceeding the growth rate of the stock index S&P-500. The main reasons that hinder the sustainable development of the US banking sector and prevent investment in this sector to outpace the efficiency of investment in the broad market was specified. The main such factors are the significant impact on banking activities of both macroeconomic crises and crises in certain sectors of the economy that are customers of banks. Since the clients of banks are almost all sectors of the economy, the list of possible sectoral crises, which are pass on the banking system in proportion to the volume of lending, is quite significant. This makes investing in the banking sector more risky than investing in other sectors of the economy. The property of the US banking sector and its of state regulation to evolve in the direction of improving the ability to counter economic crises is specified. This property reduces the reliability of forecasts for the development of the studied sector similarly to the dynamics of past periods and forces to plan events in a more optimistic scenario. The heterogeneity of the US banking sector in terms of asset structure and the level of diversification of activities has been identified, which allows individual banks of the country to go through periods of economic crisis in different ways.
Keywords: US banking sector, stocks, S&P stock index-500, investments, economic crises.
JEL Classification G21, G24, G12
Formulas: 2; fig.: 0; tabl.: 2; bibl.: 21.
15
Lapina, Yuliya. "Investment banks efficiency and corporate governance framework: finding unique peculiarities?" Corporate Ownership and Control 11, no. 2 (2014): 743–51. http://dx.doi.org/10.22495/cocv11i2c7p6.
Full textAbstract:
The main aim of this paper is to research the features of investment banks in comparison with commercial banks, what has allowed distinguishing principal differences in their functioning. The research identifies the main economic factors, which give the opportunity to evaluate the financial intermediaries’ performance in the investment banking sphere. The author suggests the phased system of scientific and methodological approach to assess the effectiveness of quantitative determination of specific investment banking activities, which will include system of the most relevant indicator for this specific banking area. In complex this method assesses efficiency of assets, cost, risk, capital and liquidity management. The author defined the investment banking efficiency by using the comprehensive procedure which allows input indicators base, highlighted integrated assessment which is based on the calculation of synthetic investment banking key performance index (SIBKPI).
16
Lam, Terence Y. M., and Malvern Tipping. "A case study of the investment yields of high street banks." Journal of Property Investment & Finance 34, no. 5 (August 1, 2016): 521–34. http://dx.doi.org/10.1108/jpif-03-2016-0019.
Full textAbstract:
Purpose – Sale-and-leaseback has become an increasingly common approach during the last two decades in the investment of high street banks (banking-halls) in the UK. One measure commonly used in making property investment decisions is the all risks yield (ARY) which is associated with the level of rental income. Investors and their advisors need to know which factors are likely to result in the highest ARY when assembling investment portfolios of such properties. The purpose of this paper is to identify those yield influences. Design/methodology/approach – A qualitative multiple-case study was adopted. A literature review generated a hypothesis which was tested by a qualitative study, based upon semi-structured interviews and a questionnaire, to establish the influencing factors. Expert interviews were held with the heads of those three major auction-houses dealing with auctions of all retail bank premises in the Great Britain market, whilst the questionnaire survey involved investment professionals from within the auction-houses. Findings – The study confirmed that the four factors influencing yields and investors’ decision-making when purchasing retail banking premises were tenant banking company (brand names), regional location (north and south super-regions), lot size (hammer price), and tenure (freehold or leasehold). Research limitations/implications – This investigation focuses on Great Britain’s geographical and political area which includes England, Scotland and Wales, but excludes Northern Ireland. This research focuses on banking-halls as a sub-class of retail property investment. The findings form a baseline upon which further research can be conducted on other sub-types of retail property such as high street shops and retail parks. The results will also underpin the development of a quantitative yield predictive model based on regression analysis. Practical implications – To maximize the returns on property investments, investors and their professional advisors can use those factors having the greatest influence on yields to make informed investment decisions for the building of property portfolios. Originality/value – As a sub-sector, bank premises do not necessarily correlate to the generic retail sector. This research consolidates the broad systematic drivers of retail yields into specific factors influencing the ARY of banking-halls. The findings provide better understanding of an active but sparsely analysed sub-market of banking hall investments, and by so-doing help investors to maximize their investment returns.
17
Celik, Ismail Erkan, Umit Hacioglu, and Hasan Dincer. "Investment and Development Banking and Its Development in Turkey." International Journal of Finance & Banking Studies (2147-4486) 1, no. 1 (November 16, 2016): 39. http://dx.doi.org/10.20525/ijfbs.v1i1.640.
Full textAbstract:
<p>Banks, one of the most significant economic means of the nations and international organizations, have occasionally become one of the institutions mostly affected by the financial crisis in the world. Especially in the economies of the developed countries, one of the most important aspects of the financial sector is measured by the size of the financial resources and assets of the banks. The size and place of the investment banks depends on the investment and existing credit reserves appropriated by its members. From this perspective, scrutinizing the Investment and Developments Banks, which is one of the economic growth criteria, is of high importance. To this end, in addition to the operation of the Investment and Development Banks, financial products of these banks in Turkey are also analyzed in this study.</p>
18
Stola, Emilia, and Artur Stefański. "Zmienność struktury kredytowej a wielkość banku na przykładzie wybranych banków spółdzielczych." Zarządzanie Finansami i Rachunkowość 5, no. 3 (September 30, 2017): 89–100. http://dx.doi.org/10.22630/zfir.2017.5.3.20.
Full textAbstract:
The cooperative banks to be competitive in banking sector relative to the commercial banks and others banking institution had to pursue of customers’ credit request. It seems, that bank granted investments loans, which are quantified by smaller dynamics than retail loans. However individual bank’s commitment in this situation is relatively higher. Therefore is a question whether the genre structure of granted loans is being determined by the size of the bank? The aim of the elaboration was to determine the diversification level of loans’ structure due to bank’s size. The analysis of variance confirmed that existing essential statically of differences in the structure of investment loans and operating and debt instruments, however in other loans’ groups in the structure weren’t confirmed any differences depending on the size of the bank.
19
M. Ganesan and Dr. K. Prabhakar Rajkumar. "Measuring the Rural Customers’ Attitude: Knowledge and Influencing Factors of Internet Banking Usages." GIS Business 15, no. 2 (February 9, 2020): 31–45. http://dx.doi.org/10.26643/gis.v15i2.18896.
Full textAbstract:
Internet banking refers the systems that enable the customers to access their accounts and general information on bank products and service through the use of a bank’s website, without the intervention or inconvenience of sending letter, faxes original signatures. Internet banking as an “internet portal, through which customers can use different kinds of banking service ranging from bill payment to making investment”. Thus internet banking is the use of internet by bank customers for transacting their banking transactions. In other words, it is the use of internet by banks to deliver banking transaction. In other words, it is the use of internet by banks to deliver banking services to customers irrespective of their geographical location.
20
Armstrong, Angus. "Restoring Trust in Banking." National Institute Economic Review 221 (July 2012): R4—R10. http://dx.doi.org/10.1177/002795011222100111.
Full textAbstract:
Trust allows financial transactions to take place when contracts are incomplete and the cost of negotiating too great for the parties involved. Banking covers many different types of transactions in assets with different levels of incomplete contracts. Investment banks have traditionally dealt with assets with incomplete contracts and often traded on informal and opaque markets. The creation of new global banks combined know-how, capital and collateral to generate enormous growth in these markets. While global banks developed trust with counterparties in specific markets, the opacity combined with limited liability structures also created principal-agent problems. The scandals which emerged are a reflection of these agency problems and have left trust in the banks greatly diminished. If levels of trust remain so low, this will be consistent with ongoing bank vulnerability, less lending to finance risky but profitable investment projects, and consequently lower economic activity. Regulation can support private incentives to accept codes of conduct which enhance trust.
21
Lahrech, Nada, Abdelmounaim Lahrech, and Youssef Boulaksil. "Transparency and performance in Islamic banking." International Journal of Islamic and Middle Eastern Finance and Management 7, no. 1 (April 14, 2014): 61–88. http://dx.doi.org/10.1108/imefm-06-2012-0047.
Full textAbstract:
Purpose – The purpose of this paper is to assess whether Islamic banks are transparent regarding profit (and loss) sharing to investment account holders. Another objective is to appraise whether Islamic banks' performance affects management incentives to distribute profit (and loss) to investment account holders. Design/methodology/approach – To investigate the research issue, the authors conducted an empirical study. Data of 25 global operating Islamic banks have been collected and analyzed for the period 2006-2010. The authors also developed a mathematical model based on the generalized least-squares principle. Findings – The research results showed that enhancing transparency will prevent Islamic banks from shadowing their profit allocation practices and place investment account holders in a better position to manage their invested funds. The study also showed that bettering Islamic banks’performance will induce them to manager profit-sharing investment account holders’ funds under bonafides. Research limitations/implications – The main limitation is data availability. The maximum number of Islamic banks that disclose financial data covering the period of 2006-2010 limited the scope of the study to 25 banks. Practical implications – The findings are very valuable for designing policies and standards as well as for the enforcement of these standards to improve transparency in Islamic banking. Originality/value – The study outcome is vital to many parties involved in the Islamic banking field and can be taken as a strong foundation to make appropriate actions that would help grow and sustain Islamic banking development globally.
22
Ramazanov, A. V. "ON THE REGULATION OF INVESTMENT BANKING IN RUSSIA." Vektor nauki Tol'yattinskogo gosudarstvennogo universiteta. Seriya Ekonomika i upravlenie, no. 2 (2021): 34–40. http://dx.doi.org/10.18323/2221-5689-2021-2-34-40.
Full textAbstract:
Analytical documents of the Bank of Russia and financial statements of large Russian banks indicate the growth in incomes from operations with securities within the gross share of revenues of commercial banks. In the world, there are cases of excessive activity of commercial banks in the security market (the Great Depression of 1929–1933 in the USA, default on state treasury bills in Russia on the 17th August 1998), which led to negative consequences for bank clients. The author analyzed peculiarities of investment transactions conducted by commercial banks in Russia. The author gives recommendations to reduce financial risks for the commercial banks’ customers and promote the attractiveness of the investment banking products. The author’s concept of regulation of banking activity in Russia consists of two directions: regulation of classical banking (income from lending operations exceeds income from operations in the securities market) and regulation of investment banking (the predominance of investment operations). The author justifies the necessity of the introduction of mandatory insurance of funds invested in equity securities of Russian issuers admitted to circulation on the Moscow Stock Exchange in the event of bankruptcy of issuers. The paper critically evaluates the recommendation of the Bank of Russia that professional participants in the securities market should not offer complex investment products to unqualified investors as this restricts the application of derivative securities for hedging financial risks. The author suggests the requirements for the equity capital of professional participants of the securities market and the methodology for calculating the equity capital separately for classical and investment banks.
23
Mohamud, Hussein Hillowle, and Fredrick Warui. "Innovative Banking Practices and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 3, no. 1 (August 13, 2021): 41–53. http://dx.doi.org/10.35942/ijcfa.v3i1.180.
Full textAbstract:
Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovations, the agency and bank-led theories. It was explanatory in nature and applied a census approach to gather information. The targeted group included commercial banks registered under the Central Bank totalling to 42 tiers 1. Raw and derived data was equally utilized including, financial statements and face to face interviews with top level managers. Collected information was examined by SPSS. Given conclusions were dispensed descriptively, and by inferring to statistical presentations. The resulting conclusion was that; when RTGS, agency banking, EFT, and mobile banking are solely brought up/down by a single unit, financial performance increased/ decreased by 0.163, 0.27, 0.197, and 0.318 units. At a constant however, financial performance remained at 0.236 out of 5 units. In conclusion, commercial in banks have significantly relied on innovative banking practices to shift their financial performance to new heights. The study has particularly placed both mobile and agency banking at a more central position in driving financial performance to the desired level than other factors including the RTGS and EFT. As part of the recommendations, managements of commercial banks should consider scaling up their adoption of RTGS, agency banking, EFT, and mobile banking as ways of reducing the operating cost of their respective banks reducing banking hall congestions since most of the frequently sought banking services can be achieved without one on one meeting with the bank tellers. Management should also consider adopting more innovative banking practices besides those this research investigated.
24
Pantos, Themis D. "EU Banking Directives: risk and wealth effects on the Greek financial sector." Journal of Risk Finance 9, no. 1 (January 4, 2008): 9–19. http://dx.doi.org/10.1108/15265940810842384.
Full textAbstract:
PurposeThe paper seeks to examine whether or not wealth effects and changes in the systematic risk associated with the return structure of the Greek commercial chartered banks, investment firms and insurance companies resulted from the passage of the European Union Banking Directives over the period 1988‐1997.Design/methodology/approachUsing monthly stock returns from the DataStream database for the period January 1988 to December 1997, the separate effects of each of the EU Banking Directives on Greek commercial chartered banks, investment firms and insurance companies are tested. The “seemingly unrelated regression” methodology is utilized to test three portfolios consisting of an equally weighted banking, investment and insurance index made up of major Greek banks, investment firms and insurance companies respectively. The Greek Market Index serves as a proxy for the market portfolio. All the aforementioned indices were converted to returns using the log difference method.FindingsEmpirical results indicate that the systematic risk dramatically increased for Greek insurance and investment firms and moderately increased for Greek commercial chartered banks through the tabling of the Free Capital Movement Directive in the Greek Parliament. After controlling for systematic risk, the results suggest that the passage of the Free Capital Movement Directive did not create wealth effects for the shareholders of commercial chartered banks, investment firms and insurance companies. Conversely, the results demonstrate that the Second Banking, Investment Services and Capital Adequacy Directives produced no wealth effects for the investment firms and insurance companies, but not for commercial chartered banks' shareholders. The whole wealth effect on the Greek financial sector was neutral.Originality/valueThis article will be of value to academics, bankers, bank regulators, practitioners, and economic policy makers who are interested in the regulatory evolution of the EU banking industry.
25
Bengtsson, Elias. "Investment funds, shadow banking and systemic risk." Journal of Financial Regulation and Compliance 24, no. 1 (February 8, 2016): 60–73. http://dx.doi.org/10.1108/jfrc-12-2014-0051.
Full textAbstract:
Purpose – This paper aims to consider the role of investment funds in the credit intermediation process and discuss various forms of systemic risk their involvement might give rise to. It concludes by drawing some conclusions on the policy challenges facing authorities charged with regulating shadow banking. Design/methodology/approach – The paper is based on findings from prior research and statistics. Findings – On a general level, the paper shows that even though traditional investment funds and hedge funds may be very different in terms of their investment strategies and business models, some of them share several commonalities from a systemic risk perspective. More specifically, it discusses how instability in the funding profile of investment funds may threaten their ability to substitute banks’ maturity and liquidity transformation; that their potential funding liquidity shortages, asset reallocations and leverage may contribute to procyclicality in credit and market runs on the systemic money and short-term credit markets; and that insufficient risk separation may elude managerial and supervisory oversight, and force banks to reduce or interrupt credit intermediation. Research limitations/implications – The paper points to the lack of timely and comprehensive data for uncovering the stages and entities involved in shadow banking. Without sufficient data, the task of policy bodies, regulators or macroprudential authorities to fully grasp shadow banking and its contribution to systemic risk is daunting. Originality/value – The paper represents (to the author’ knowledge) the first analysis of the role of investments in shadow banking.
26
Freitas, Otavio Dias, and Guilherme Kirch. "Performance dos bancos brasileiros no contexto de digitalização." Brazilian Review of Finance 17, no. 2 (November 5, 2019): 38. http://dx.doi.org/10.12660/rbfin.v17n2.2019.79189.
Full textAbstract:
<p>Considering the context of digitalization of the brazilian banking sistem, the present study evaluates how the investment in technology is affecting the performance of the financial institutions. Many studies have evaluated the impact of the digitalization on the results of the banks. Hernando and Nieto (2007) and Ciciretti, Hasan e Zazzara (2009) identified profit gains and cost reduction with the implementation of internet banking on the Spanish and Italian banks. In the present study, it was analysed, through linear regressions, the relationship of investments in IT and measures of profitability (ROA, ROE and margin of intermediation) and expenses (personal and total of administrative expenses). It was also verified, through a Data Envelopment Analysis (DEA), the evolution of the technical, cost and allocative efficiencies of the Brazilian banks in the, being the data segregated in terms of investment in IT. The results suggests that the investment in information technology from the banks has a positive and significative relation with the profitability variables and with the administrative expenses, partially corroborating with the studies of Hernando and Nieto (2007). It was also verified improvement on the technical efficiency of the Brazilian banks along the analysed period, mainly amongst on that with the greatest Investment in IT.</p>
27
Мандрон, В. В., Н. А. Кузнецова, and В. А. Шедько. "Assessment of investment activity of the Russian banking sector on the stock market." Voprosy regionalnoj ekonomiki, no. 2(43) (June 17, 2020): 190–201. http://dx.doi.org/10.21499/2078-4023-2020-43-2-190-201.
Full textAbstract:
Вопросы обеспечения экономического роста страны, увеличения объемов инвестиций и активизации инвестиционного процесса приобретают особую актуальность на современном этапе. Коммерческие банки являются неотъемлемыми участниками инвестиционного процесса и играют важную роль на инвестиционном рынке, выступая посредниками в аккумулировании и перераспределении временно свободных средств и размещении их в инвестиции. Несмотря, на финансовый потенциал банковского сектора, современный фондовый рынок не позволяет кредитным организациям в достаточной мере реализовывать его. На инвестиционную деятельность банков оказывает существенное влияние риски и низкая ликвидность большого числа корпоративных ценных бумаг. В статье дается оценка состава, структуры и общих объемов инвестиционных операций банковского сектора и стратегии кредитных организаций в сфере портфельных инвестиций, подробно рассматриваются инвестиционные риски, отражается связь рыночного риска с другими видами банковских рисков. Особое внимание уделено анализу динамики основных показателей характеризующих инвестиционную банковскую деятельность. The issues of ensuring the countrys economic growth increasing the volume of investments and activating the investment process are of particular relevance at the present stage. Commercial banks are integral participants in the investment process and play an important role in the investment market, acting as intermediaries in the accumulation and redistribution of temporarily available funds and placing them in investments. Despite the financial potential of the banking sector? the modern stock market does not allow credit institutions to sufficiently implement it. Banks investment activities are significantly affected by the risks and low liquidity of a large number of corporate securities in various sectors of the economy that objects of investment. The article provides an assessment of the composition. Structure and General scope of investment of the banking sector and the strategy of credit institutions in the field of portfolio investments, discusses investment r risks in detail, and reflects the relationship of market risk with other types of banking risks/ Special attention is paid to the analysis of the dynamics of the main indicators that characterize investment banking activities.
28
Ismail, Naima, and Mohamad Sabri bin Haron. "Islamic Banks." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 10, no. 1 (June 25, 2014): 1754–61. http://dx.doi.org/10.24297/ijmit.v10i1.647.
Full textAbstract:
Islamic banks has development in many aspects in practical performance of banks function, this was a limited activity in service Banks and commercial processes. Later, it came to They possess financial power and ability to create Islamic loans. They possess financial power and ability to create Islamic loans. Economical union supported by banks is not restricted to a domestic sphere, but has expanded internationally as its operations enjoy fidelity and fulfillment between banking organizations in different countries. As banking systems Islamic banks had developed, they are no longer restricted to role of being financial and service organizations, but have become money market within public sector. Furthermore, they follow up monetary flows and banking securities, by playing positive role of providing the organized money market with enough information about commercial activities. In addition, as a financial mediator who has adequate statistics about other economical units, besides its main role in creating successful development plans and riskless investment.
29
ROY, E. RUSHIT GNANA, and P. JEGAN. "Hrm Practices In Commercial Banks: A Discriminant Analysis Among Public And Private Sector Banks." Think India 22, no. 2 (October 31, 2019): 166–73. http://dx.doi.org/10.26643/think-india.v22i2.8715.
Full textAbstract:
Since the banking industry is a knowledge based industry it is essential to transfer the staff recruited into valuable human resources for the banks. It can be done by the provision of adequate skills, knowledge, competences and talents to the human resources. The investment n HRM is essential and inevitable in banking industry, since the return on investment on HRM practices for higher than its cost. With this background, that rate of implementation of HRM practices is banks was analysed. The study revealed that implementation of HRM practices at private sector banks are higher compared to public sector banks. The public sector banks should realise the importance of implementation of HRM practice in order to enrich their performance.
30
ROY, E. RUSHIT GNANA, and P. JEGAN. "HRM Practices In Commercial Banks: A Discriminant Analysis Among Public And Private Sector Banks." Think India 22, no. 2 (October 30, 2019): 214–21. http://dx.doi.org/10.26643/think-india.v22i2.8722.
Full textAbstract:
Since the banking industry is a knowledge based industry it is essential to transfer the staff recruited into valuable human resources for the banks. It can be done by the provision of adequate skills, knowledge, competences and talents to the human resources. The investment n HRM is essential and inevitable in banking industry, since the return on investment on HRM practices for higher than its cost. With this background, that rate of implementation of HRM practices is banks was analysed. The study revealed that implementation of HRM practices at private sector banks are higher compared to public sector banks. The public sector banks should realise the importance of implementation of HRM practice in order to enrich their performance.
31
Kozioł, Waldemar. "Deflation and investment activities of banks. The case of Japan in the years 1993-2008." Equilibrium 4, no. 1 (June 30, 2010): 191–201. http://dx.doi.org/10.12775/equil.2010.015.
Full textAbstract:
The purpose of the article is to identify determinants of investment activities of banks during deflationary process. Japanese experience suggests that the processes of long-term deflation have a substantial impact on the structure of assets and liabilities of banking institutions. In conditions of deflation and 'liquidity trap', classic, deposit-credit activities of banks do not produce adequate profits. As a result it influences negatively bank’s profitability. In this situation banks tend to look for other sources of revenue such as commissions and investment activities. Article shows causes and effects of changes in banks' balance sheets. It is also an attempt to answer the question whether there are possibilities to build an investment portfolio that help to avoid the negative effects of deflation processes.
32
Dorasamy, N. "Corporate Social Responsibility and Ethical Banking for Developing Economies." Journal of Economics and Behavioral Studies 5, no. 11 (November 30, 2013): 777–85. http://dx.doi.org/10.22610/jebs.v5i11.450.
Full textAbstract:
Corporate social responsibility is being increasingly considered vital for organizational success and sustainable growth, especially in view of corporations operating in an environment with multiple stakeholder interests. Investment in CSR should not been seen as an expense, but rather the allocation of resources to strengthen relationships with stakeholders in an endeavour to reap the multifaceted benefits of such investments Financial institutions like banks need to be seen as leading organizations who engage in social activities that uplift society, the environment and economy. The article analyses significant areas of corporate social responsibility for banks which are integral for customers, government, suppliers, citizens, employees and global partners for enhancing the responsibility of banks to a diverse range of stakeholders who have an interest in the banks. This ‘common good’ reputation can provide several advantages to banks which further impacts on the performance of banks.
33
Siddiqua, Ayesha. "Examining the Performance of Islamic Banks in the Context of Bangladesh." Global Disclosure of Economics and Business 6, no. 2 (December 31, 2017): 85–92. http://dx.doi.org/10.18034/gdeb.v6i2.119.
Full textAbstract:
As a unique banking system Islamic Banking gained popularity all over the world. In 1983 Bangladesh also came forward with Islamic banking. This study focused on the performance of six selected Islamic banks in Bangladesh during 2011-2015. Researchers collected data from the annual reports of the Banks. Variables such as investment, total asset, deposit, earnings per share (EPS), return on asset (ROA) and return on equity (ROE) were selected for the study. In this study the main tools were growth and trend analysis. This empirical investigation revealed that the growth of total asset, deposit and investment was up to the mark but the Banks were not able to increase the growth rate of EPS, ROA and ROE. The result also showed that Islamic banks are doing good job in Bangladesh although the Banks are operating according to the conventional banking framework.
JEL Classification Code: G 21
34
Yang, Wanping, Bingyu Zhao, Jinkai Zhao, and Zhengda Li. "An Empirical Study on the Impact of Foreign Strategic Investment on Banking Sustainability in China." Sustainability 11, no. 1 (January 1, 2019): 181. http://dx.doi.org/10.3390/su11010181.
Full textAbstract:
In order to improve the banking sustainability in China, China’s government has announced that the restrictions on foreign shareholding ratio in domestic banks will be canceled. However, the effectiveness of foreign strategic investment needs checking. In addition, under the new policy, the method by which banks formulate appropriate internal decisions about introducing foreign strategic investment is an important issue for bank managers. Continuous productivity growth will bring sustainable development; therefore, the aims of this paper are: (1) to find the relationship between foreign strategic investment and productivity change of China’s banks, and to verify the effectiveness of introducing foreign strategic investment; (2) to find the optimal foreign shareholding ratio; (3) to show how foreign strategic investment affects the productivity of China’s banks, i.e. the transmission mechanism between them, and to provide bank managers with evidence and support for making decisions on introduction of foreign strategic investment. This paper employs the Malmquist-Luenberger index and combines it with Epsilon-based-measure to derive a new index, i.e. the EBM-Malmquist-Luenberger index, to measure the dynamic productivity change of China’s banks. In addition, the dynamic panel data and system GMM estimator are used to analyze the transmission mechanism as well as the impact of foreign strategic investment on the productivity of China’s banks. The results revealed three facts. First, when the foreign shareholding ratio increases within a given range, foreign strategic investment continuously improves the productivity and sustainability of China’s banks. Second, an inverse N-shaped relation between foreign strategic investment and productivity growth of China’s banks is supported, and the optimal foreign shareholding ratio is 20.16%. Last but not least, foreign strategic investment improves the productivity and sustainability of China’s banks, mainly through changing scale efficiency. The results of this paper may provide support for policy formulation of China’s banks.
35
O’Connor, Aidan, Francisco J. Santos-Arteaga, and Madjid Tavana. "A game-theoretical model of bank foreign direct investment strategy in emerging market economies." International Journal of Bank Marketing 32, no. 3 (April 28, 2014): 194–222. http://dx.doi.org/10.1108/ijbm-08-2013-0077.
Full textAbstract:
Purpose – The purpose of this paper is to propose a game-theoretical model for commercial bank foreign direct investment strategy, government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system. Government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system. Design/methodology/approach – The paper develops a game-theoretical model to analyze the optimality of the limiting entry strategy followed by a given domestic institutional sector when considering the entry applications of foreign banks in the domestic financial system. The model analyzes the strategic options available to an emerging market country with a relatively underdeveloped banking system when deciding whether or not and to what extent allow for the entrance of better reputed and more technologically advanced foreign banks in its domestic financial system. Findings – The paper shows that the progressive liberalization of entry restrictions would define the perfect Bayesian equilibria of the subsequent set of continuation games and the respective payoffs derived from this liberalization as the domestic economy integrates and competes within the global financial system. Originality/value – Banks operating in the international financial market have incentives to invest directly in emerging market economies and governments have incentives in allowing foreign banks entry to their market. As banking systems in these economies are generally underdeveloped, opening the financial system to foreign competitors could lead to a decrease in the market share of local banks. Eventually foreign banks could control the banking system and could de facto control the money supply.
36
Dzombo, Gift Kimonge, James M. Kilika, and James Maingi. "The Mediating Effect of Financial Inclusion on the Relationship between Branchless Banking Strategy and Performance of Commercial Banks in an Emerging market Context: The Case of Kenya." International Journal of Economics and Finance 10, no. 7 (June 25, 2018): 161. http://dx.doi.org/10.5539/ijef.v10n7p161.
Full textAbstract:
Since 1990 to date, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study investigated the role of financial inclusion on the relationship between branchless banking strategy and financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the effect of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya. The study also aimed at determining the mediating effect of financial inclusion on the relationship between branchless banking and financial performance of commercial banks in Kenya. The study adopted a correlational research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the commercial banks and Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicators for agency and electronic banking. Data analysis was done using SPSS and STATA statistical software. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks. However when agency and electronic banking channels were used together as a multichannel strategy, the effect on bank’s financial performance was found to be positive and significant at the 95 percent significance level. Study findings also indicate that the strength of the relationship between branchless banking strategy and financial performance of commercial banks in Kenya depends on the level of financial inclusion. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other and calls on the government to come up with policies to foster financial inclusion within the banking industry in order for the industry to achieve maximum returns from branchless banking strategies.
37
Islam, K. M. Anwarul, and Orobah Ali Barghouthi. "Risk Management of Islamic Banking: An Islamic Perspective." International Journal of Islamic Banking and Finance Research 1, no. 1 (November 30, 2017): 25–28. http://dx.doi.org/10.46281/ijibfr.v1i1.35.
Full textAbstract:
The financial services industry of Islam consists of an increasingly vast number of institutions, such as investment and commercial banks, investment companies and mutual insurance companies. In Islamic banks effective risk management deserves special attention. However, it has numerous drawbacks that are required to be understood better. Risk management is about the attitude towards paying off and the strategies in dealing with them and the risks associated with it in relation to modern banking. As an operational problem, risk management is about the classification and identification of methods, processes and risks in banks to supervise, monitor and measure them.In comparison to conventional banks, Islamic banks face big difficulties in identifying and managing risks due to bigger complexities emerging from the profit loss sharing concept and nature of particular risks of Islamic financing. This research investigates in detail the need for risk management in Islamic bank (Ilias, S. E. B. 2012).
38
Kumar, Vijay, and Abdur Rahman Aleemi. "Financial Leverage And Firms’ Investment Decisions: Evidence from Banking Sector of Pakistan." Journal of Independent Studies and Research-Management, Social Sciences and Economics 18, no. 2 (December 31, 2020): 163–74. http://dx.doi.org/10.31384/jisrmsse/2020.18.2.10.
Full textAbstract:
This paper aims to find out the effects of financial leverage on firms’ investment decisions in the Banking Sector of Pakistan. Utilizing panel data techniques along with common effects, fixed effects, and random effects for listed banks from 2006 to 2013, the results indicate that leverage is having no significant effect on the investment decision of banks in Pakistan and hence we support Modigliani and Miller (1958) proposition of Irrelevance theory. To current study is going to provide useful insights to banks and investors that investment decision is irrelevant to the way company is financed, rather banks must focus on other factors such as interest rates, available cash flow, profitability which are found to be relevant to the investment decision. It will also serve as basic literature for future research.
39
D’yakonova, I., O. Pakhnenko, and L. Shevchenko. "NEW APPROACHES TO BANKING BUSINESS MODELS IN THE DIGITAL ECONOMY." Vìsnik Sumsʹkogo deržavnogo unìversitetu, no. 1 (2019): 89–94. http://dx.doi.org/10.21272/1817-9215.2019.1-12.
Full textAbstract:
The factors of the post-crisis development of the world banking system, the strengthening of the role of information technology in all industries, the increasing role of innovative Fintech intermediaries in the banking market encourage the management of banks to revise traditional business models and to form new approaches to managing the modern bank. In the article the authors aimed to investigate the impact of digitization on the choice of banking business model and the development of algorithm for estimating a bank’s business model. Traditionally banks choose one of five business models: lending, high leverage, investment, fee, margin. Most operating banks opt for traditional models because the business environment requires it. However, maintaining the bank’s competitiveness, enhancing its efficiency and resilience to financial imbalances is possible by building an innovative business model that takes into account the modern diffusion of information technology and the functioning of FinTech companies as an alternative to traditional banking business. Although nobody knows yet what will replace the current business model, there are currently three approaches to assimilating FinTech in banking: the Financial Control Center, Banking-as-a-Service, the Niche Bank. The choice of the banking business model and its transformation should be accompanied by an assessment of the bank’s business model. Thus, an important component of banking management in an unstable environment is the analysis of the business model of the bank and its transformation in order to minimize the impact of possible negative effects of financial crises on the performance of the bank. The proposed algorithm for estimating a bank’s business model includes 6 stages: preliminary assessment of the main components of the bank’s business model; assessment of the business environment of the bank; stress testing of the viability of the bank’s business model; evaluation of the bank’s strategy; identification of key vulnerabilities to which the bank’s business model is prone or likely to be vulnerable; and justification of the results and formation of effective conclusions. Keywords: banks, banking business model, banking management, digital economy, business model innovation.
40
I. Tabash, Mosab, and Suhaib Anagreh. "Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)." Banks and Bank Systems 12, no. 1 (April 25, 2017): 113–18. http://dx.doi.org/10.21511/bbs.12(1-1).2017.03.
Full textAbstract:
Islamic finance has grown rapidly in the recent years particularly in the Middle East and the world. It receives a great attention of bankers and financial scholars due to its stability during financial shocks and crises. The paper uses empirical analysis to test the role of Islamic banking in enhancing the economic growth of United Arab Emirates (UAE). Gross Domestic Product (GDP), Gross formation (GF), and Foreign Direct Investment (FDI) are used as representatives for economic growth, while Islamic banks’ investments are used as a representative for Islamic financial sector in the UAE. The study uses time series techniques to test the link between the variables. In the current study, co-integration along with error correction models is utilized. All econometric work is done using Eviews. The findings reveal that the causal relationship between Islamic banks’ investments and economic growth of UAE is supply-leading direction. Furthermore, the findings depict that Islamic investments have contributed in increasing investments and in bringing FDI into the country in the long-term. The study also shows that there is two-way association between Islamic banks’ investments and FDI. It shows that FDI supports Islamic banking and Islamic banking brings FDI. The paper concludes that authorities of the UAE should devote more attention for this growing banking sector by facilitating regulations for establishing new Islamic banks and then creating a suitable environment for their growth and progress in the UAE.
41
Setiadi, Tri. "POLITIK HUKUM FUNGSI BANK SEBAGAI AGEN REKSADANA DI PASAR MODAL." Yustitia 5, no. 1 (April 20, 2019): 141–54. http://dx.doi.org/10.31943/yustitia.v5i1.64.
Full textAbstract:
The politics of law in the field of Indonesian piracy associated with the function of banks as mutual fund agents in the capital market in the era of free trade must be able to accommodate the main objectives of regulating banking institutions, namely the stability of the banking institutions as described above. The involvement of banks as mutual fund agents must pay attention to risk management because mutual funds are investment products that have risks and can affect the relationship between the bank and its customers and have a large impact on public trust in the bank. The legal policy must be stated in the product of legislation that regulates banking and capital market investment in this case the involvement of banks in mutual funds. The law must be a guide in the relationship between banking institutions and society.
42
Muhammed, Naheda A., and Jawad F. Ali. "The Obstacles and Financial Risks Facing Investment in Islamic Banks and Ways of Addressing them." Journal of University of Human Development 4, no. 1 (March 31, 2018): 48. http://dx.doi.org/10.21928/juhd.v4n1y2018.pp48-56.
Full textAbstract:
There is no doubt that the banking operations are ingredients of human societies life, and a basic element for it , as well as the banking operations consider an effective economic given , Nowadays the bank is necessary for the modern life, it is not only a luxury cultural or scientific achievement, but has become an effective factor to the civilian life, and the life do not go on without the existence of banks, So the Islamic banks have come in response to requisite the economic, social and contractual life of Muslims, and the main aim of these banks is to apply the law of God in the banking and financial transactions in the Islamic societies, and already these banks have face obstacles and financial risks which especially facing by the investment in these banks.Our modest research which entitles (obstacles and financial risks that facing the investment in the Islamic banks - and ways of treating them – )has come to study the most important obstacles and risks, and seek to find solutions to the obstacles and risks in order to success the banking operations in the Islamic banks .The scientific material of the research distributed into three demands , first: - dedicated to study the concept of risk linguistically and doctrinal and economically, and we are studying in the second demand :- the most important obstacles and financial risks which face the investment in the Islamic bank, and the third demand comes to introduce the proposed solutions for the risks and financial obstacles which facing the investment in the Islamic banks , with stating the most important results and recommendations of the research.
43
Ashraf, Nadia, and Sumayya Chughtai. "Bank Disclosure and Stock Price Synchronicity: Evidence from Dual-Banking System Countries." NICE Research Journal 14, no. 1 (June 14, 2021): 62–85. http://dx.doi.org/10.51239/nrjss.v14i1.242.
Full textAbstract:
In stock markets, information plays a crucial role in determining trading dynamics and price discovery. In the investment decisions, an investor may have incomplete information regarding the firm-specific factors because of information asymmetry. Therefore, investors rely on market factors. Extensive work has been done on stock price synchronicity (SYNCH) from the dual banking system viewpoint. Therefore, the present study examines the association of Stock Price Synchronicity with Bank’s Disclosure items and Shariah Compliance using data of 138 banks for 09 years (2011-2019) by taking dual banking system countries. We consider 11 countries, i.e., Bahrain, Bangladesh, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi Arabia, Turkey, UAE, and Yemen, for analysis. We select different banks based on these countries' dual banking systems and exclude two countries (UAE & Yemen) due to data availability issues. Data of 138 banks is analyzed using specific statistical techniques like descriptive statistics, correlation, Fisher-type unit-root test, endogeneity test, and generalized method of moments (GMM) by using STATA. In the analysis, we found that bank disclosure has a significant positive relationship with SYNCH. However, shariah compliance banks have a significant negative relation with SYNCH. Moreover, control variables which include banks profitability, and leverage have a significant positive relationship with SYNCH. The banks' size has a significant negative relationship because the size affects the banks according to the market.
Keywords: Stock Price Synchronicity, Bank’s Disclosure, Asymmetric Information, Banking Sector.
JEL Classification: D82, G21
44
Al-Oshaibat, Suleiman Daood, and Daood Al-Oshaibat. "Form the Optimal Investment Portfolio Applied Study in the Jordanian Banking Sector (2013-2017)." International Business Research 13, no. 3 (February 10, 2020): 79. http://dx.doi.org/10.5539/ibr.v13n3p79.
Full textAbstract:
The study aimed to form the optimal investment portfolio in the Jordanian banking sector. The research covered a period (2013-2017) and the sample of the study was selected from its community of Jordanian banks listed on the Amman Stock Exchange, consisting of (15) working banks for which the necessary data are available to study.
The importance of the research lies in the formation of a thought and methodology that can be applied and utilized by investors and securities analysts in the management of their investment portfolio.
The study shows that the effective rate of return is higher than the required rate of return in the Jordanian commercial banks. This indicates that the commercial banks have succeeded in their estimates of the required or actual rate of return for the optimal investment portfolio banks. the correlation matrix between returns on each bank in the investment portfolio is mostly low, which confirms that the investment portfolio of Jordanian banks is efficient, as Markowitz stressed on his focus on the correlation coefficient between returns and its impact on the return and risk of the optimal investment portfolio that achieve the highest return at a certain level of risk.
45
Dzombo, Gift Kimonge, James M. Kilika, and James Maingi. "The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya." International Journal of Financial Research 8, no. 4 (September 14, 2017): 167. http://dx.doi.org/10.5430/ijfr.v8n4p167.
Full textAbstract:
The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.
46
Cherkasova, Svitlana Vasylivna. "FEATURES OF FINANCIAL INVESTMENT OF BANKS AND NON-BANKING INSTITUTIONAL INVESTORS IN UKRAINE." SCIENTIFIC BULLETIN OF POLISSIA 2, no. 1(13) (2018): 100–106. http://dx.doi.org/10.25140/2410-9576-2018-2-1(13)-100-106.
Full text
47
Le, Tam T., Ha N. Mai, and Duong T. Phan. "Fintech Innovations: The Impact of Mobile Banking Apps on Bank Performance in Vietnam." International Journal of Research and Review 8, no. 4 (April 24, 2021): 391–401. http://dx.doi.org/10.52403/ijrr.20210446.
Full textAbstract:
This paper is aimed at analyzing the impact of FinTech innovations on bank performance across mobile banking applications in Vietnam. Using the longitudinal panel data from 2010-2019 (with 220 observations) of 22 local commercial banks in Vietnam. Multivariate panel regression is chosen to experimentally test the research hypotheses. This research paper is one of the first quantitatively investigating the effects of fintech innovation (mobile banking apps) on bank performance in Vietnam. In addition, studies on financial indicators are shown quite comprehensively in the period 2010-2019. Our empirical study has shown the following results: (i) FinTech innovations’ positive impact on bank performance in Vietnam; (ii) Banks’ adoption of mobile banking technologies positively impacted banks’ fee-based income, consumer loans and money market deposits; (iii) The effect of mobile technologies on financial performance was much stronger for small banks than large banks; (iv) As for the balance sheet liabilities aspect, the money market fund of small banks is positively affected by the mobile banking application; (v) In terms of balance sheet assets, consumer loans by small banks are positively affected by the mobile banking application while large banks are not; (vi) GDP per capita has a positive effect on the ROE of both small and large banks; (vii) Mobile phone penetration rates positively affected bank ROA and ROE and its effect was larger on small banks. From the findings, key recommendations to Vietnamese commercial banks to improve bank performance in the context of an increasingly technological development are to: (1) Increase investment in mobile banking apps and the entire mobile banking technology; (2) Increase investment in financial technology, focus more on mobile banking users and the entire mobile banking services; (3) Take advantage of the technical support and consultancy of international organizations and bilateral cooperation with other countries' authorities in management of Fintech businesses; (4) Learn from commercial banks in other countries to draw experiences, thereby develop in own context. (5) Training human resources for the finance and banking industry to not only have professional knowledge and ability to analyze data, but also have to be proficient in operating digital technology. Keywords: Fintech Innovations, mobile banking apps, bank performance, Vietnam, theories of Technological Innovation.
48
Fatima, Shaheen, Samreen Fatima, and Nausheen Fatima. "Effect of R & D Investment on Performance of Banking Sector in Pakistan." Journal of Management Info 5, no. 4 (December 31, 2018): 7–12. http://dx.doi.org/10.31580/jmi.v5i4.113.
Full textAbstract:
Research and development activity initiates and promotes new production, increase knowledge level, and introduces new techniques of technology implementation and production. The current study presents and unveils the diversifying behavior of variables affecting the performance of banking sector and R&D investment association. cross sectional fixed effect model and random effect model utilizing ordinary least square methods were applied to secondary data collected from reliable sources of annual reports published by banks listed on Pakistan stock exchange and further such data was verified from state bank of Pakistan official sire .the data range from 2012-2017 and only 10 private banks were considered as sample size which were listed on Pakistan stock exchange. The intense literature guide that the performance of banks is affected by ROA, ROE, AND EPS. Furthermore Hausman test ass applied and it was concluded that when firm’s performance is dependent variable then fixed effect is better and thee is relationship between R&D investment and performance of banks.
Key words: R &D Investment, Performance of banking sector, banking sector in Pakistan
49
Gutkevych, Svitlana, and Virginija Jureniene. "BANK’S INVESTMENT ACTIVITY." Baltic Journal of Economic Studies 6, no. 2 (May 22, 2020): 108–15. http://dx.doi.org/10.30525/2256-0742/2020-6-2-108-115.
Full textAbstract:
The article considers the investment system that is determined by the investment activity of financial institutions. The banking system is a dynamic system, the basis of the economic infrastructure of the market. The bank's investment operations are a complex process because the bank can be both an object and an investor. The bank's investment choices are influenced by the following major factors: expected rate of return, tax characteristics, mortgage requirements, risks.The stability of the banking system depends on the general equilibrium conditions between accumulation and investment demand. The state of the banking system affects investment. The structure of the modern banking system in Ukraine is in line with Western counterparts, and the domestic legal framework in the banking sector is perfect enough to regulate banking processes and ensure the stability of the banking sector. In a broader context, international investment processes are influenced by: the state of development of the world economy, international factor and investment markets; stability of the world monetary system; development of international investment infrastructure and the like. In the context of globalization, international investment is influenced by the interacting processes of trans nationalization and regional economic integration. The effects of global economic factors, on the one hand, offset some of the differences between countries, and on the other, it creates a macro environment for large-scale activity of international entities and investment institutions.
50
Wihananto, Adri. "ANALISIS TINGKAT RISIKO INVESTASI PADA SAHAM PERBANKAN YANG GO PUBLIC (Studi Kasus pada Saham BBNI dan BNII di Bursa Efek Indonesia Tahun 2007 – 2010)." Jurnal Ilmiah Binaniaga 8, no. 02 (May 25, 2019): 121. http://dx.doi.org/10.33062/jib.v8i02.327.
Full textAbstract:
Indonesia's banking industry experienced ups and downs in recent years. Triggering high inflation volatility of performances and declines of stocks, which greatly affect the performance of Indonesian banks. The increase of stocks indicates the higher interest rates. Higher interest rates could inhibit lending that led to the decline in performance and declines of stocks listed at BEI. Seeing the Indonesian banking industry has not stabilized, the logical consequence faced by investors when deciding to make investments in the banking sector is uncertainty or risk. Risk will always overshadow in any investment decisions taken by investors. This study attempted to compare the level of investment risk from the two banking groups to determine which groups are more risky, so investors could know where a decent investment to be chosen. This study aimed to determine the level of risk groups of state-owned banks, private banks, the level of risk groups by using the trend method, and whether there are differences in risk of both groups.The research methodology used is the descriptive method approach to comparative. The data used is two banking shares listed on the Indonesia Stock Exchange consists of three state-owned bank shares (known as PT. Bank Negara Indonesia Tbk) and private banks (PT. Bank Internasional Indonesia Tbk) during the period 2007 - 2010. The calculation of both the stocks level of risk using standart deviasi, regresion, corelation by using SPSS 17.0 and have statistic test of two parties. From the calculations showed that there was difference in risk between state-owned banks and private banks. With words both state-owned banks and private banks not have the same risk. Due to the influnce of the policies issued by the goverment against the state-owned bank. Result of the statistical tests to PT. Bank Negara Indonesia Tbk. obtained didn’t significant result for the 0.002 with a significance level of 0.05, it can be concluded that there is no influence between the level of risk with the level of returns in the stock of BBNI. Based on the result of statistical tests on significant result obtained PT. Bank Internasional Indonesia Tbk. at 0.05 with a significance level of 0.05, it can be concluded that there is influence between the level of risk with the level of returns in the stock of BNII.Key words: Private Banks, State-owned Bank, the Level of Risk, the Level of Return.