Commercial Banks, Banking Systems, and Basel Recommendations

2022 ◽  
pp. 1-84
Author(s):  
Kannan Subramanian R ◽  
Dr. Sudheesh Kumar Kattumannil
Keyword(s):  
Commercial Banks ◽  
Banking Systems

Risk management with a duration gap approach

2020 ◽  
Vol 11 (6) ◽  
pp. 1257-1300 ◽  
Author(s):  
Jamshaid Anwar Chattha ◽  
Syed Musa Alhabshi ◽  
Ahamed Kameel Mydin Meera
Keyword(s):  
Commercial Banks ◽  
Regional Differences ◽  
Balance Sheet ◽  
Gap Model ◽  
Asset Liability Management ◽  
Content Type ◽  
Banking Systems ◽  
Liability Management ◽  
Duration Gap ◽  
The Impact

Purpose In line with the IFSB and BCBS methodology, the purpose of this study is to undertake a comparative analysis of dual banking systems for asset-liability management (ALM) practices with the duration gap, in Islamic Commercial Banks (ICBs) and Conventional Commercial Banks (CCBs). Based on the research objective, two research questions are developed: How do the duration gaps of ICBs compare with those of similar sized CCBs? Are there any country-specific and regional differences among ICBs in terms of managing their duration gaps? Design/methodology/approach The research methodology comprises two-stages: stage one uses a duration gap model to calculate the duration gaps of ICBs and CCBs; stage two applies parametric tests. In terms of the duration gap model, the study determines the duration gap with a four-step process. The study selected a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries for the period 2009-2015. Findings The paper provides empirical insights into the duration gap and ALM of ICBs and CCBs. The ICBs have more variations in their mean duration gap compared to the CCBs, and they have a tendency for a higher (more) mean duration gap (28.37 years) in comparison to the CCBs (11.79 years). The study found ICBs as having 2.41 times more duration gap compared to the CCBs, and they are exposed to increasing rate of return (ROR) risk due to their larger duration gaps and severe liquidity mismatches. There are significant regional differences in terms of the duration gap and asset-liability management. Research limitations/implications Future studies also consider “Off-Balance Sheet” activities of the ICBs, with multi-term duration measures. A larger sample size of 100 ICBs with 10 years’ data after the GFC would be more beneficial to the industry. In addition, the impact of an increasing benchmark rate (e.g. 100, 200 and 300 bps) on the ICBs as per the IFSB 20 per cent threshold can also be established with the duration gap approach to identify the vulnerabilities of the ICBs. Practical implications The study makes profound contributions to the literature and suggests various policy recommendations for Islamic banks, regulators, and standard setters of the ICBs, for identifying and measuring the significance of the duration gaps; and management of the ROR risk under Pillar 2 of the BCBS and IFSB, for financial soundness and stability purposes. Originality/value To the best of the authors’ knowledge, this is a pioneer study in Islamic banking involving a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries. The results of the study provide original empirical evidence regarding the estimation of duration gap, and variations across jurisdictions in terms of vulnerability of ICBs and CCBs in dual banking systems.

scholarly journals THE EFFICIENCY OF ISLAMIC AND CONVENTIONAL BANKS IN PAKISTAN

2020 ◽  
Vol 24 ◽  
Author(s):  
Hassan Ali
Keyword(s):  
Performance Indicators ◽  
Commercial Banks ◽  
Banking Sector ◽  
Key Performance Indicators ◽  
T Test ◽  
Islamic Banks ◽  
Banking Systems ◽  
Different Types ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

In Pakistan, the conventional banks start their functions after the independence of Pakistan and followed by the introduction of the Islamic banking’s. In this study, four Conventional and four Islamic banks were selected. The different types of ratios will be used to check the performance of banking sector these ratios are profitability, liquidity, investment and solvency ratios. The different types of ratios were used to check the performance of banking sector and to evaluate the trends of Islamic and commercial banks. The objectives of our study were to evaluate the trend of performance of conventional and Islamic banks and analyses the key performance indicators of the banking systems. The SPSS version 20 was used and the t-test was applied to the data. The findings revealed that the conventional banks were more efficient than the Islamic banks.

scholarly journals Models of restructuring banking systems in economies in transition

2002 ◽  
Vol 45 (3-4) ◽  
pp. 201-224 ◽  
Author(s):  
Sinisa Ostojic
Keyword(s):  
Czech Republic ◽  
Central Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Slovak Republic ◽  
Foreign Banks ◽  
The Czech Republic ◽  
Chain Reactions ◽  
Banking Systems ◽  
Economies In Transition

In view of the still underdeveloped capital market in Central and Eastern Europe, modernizing enterprises particularly depends on a functioning banking sector. Due to the interdependence enterprises and banks the insolvency of individual enterprises set off chain reactions which resulted in the collapse of banks and shook the banking systems in some countries. Commercial banks were particularly susceptible to these developments since the ratio between their own fluids and enough experience in reorganizing enterprises nor business perspectives for the enterprises depending on them. In the past years the individual states have made different degrees of progress in reorganizing their commercial banks. Two policy patterns become manifest: Estonia very consistently closed insolvent banks and opened markets for foreign banks and newly developing private banks. Thus the Estonia state considerably reduced its own share in the banks. Latvia also tried to increase its banks orientation towards profitability by opening the market and reducing state shares. The other countries, by contrast, primarily improved capital endowment of the existing banks. Between 1992 and 1995 Polish, Hungarian and Slovene governments realized extensive recapitalisation. While Poland increased the registered capital of important commercial banks, the Slovene and the Hungarian governments also bought nonperforming loans from the banks for state bonds. Hungary then increased the registered capital of the big state-owned banks. In 1994. and 1995. respectively partial recapitalisation took place in Bulgaria and the Czech Republic. Neither Latvia nor Bulgaria nor Lithuania have until now succeeded in stabilizing their banking systems. In the Czech Republic which similar to Estonia opened the market, leading to the emergence of about 60 banks, the central bank has hitherto intervened in 12 banks facing liquidity problems or insolvency. In the Slovak Republic a far-reaching consolidation of banks is also still due. The governments in Bulgaria and Lithuania presently intend to increase the banks capital by state bonds, while the Latvian central bank refrained from direct intervention after the collapse of Banks Baltija and only intensified control of the banks activities.

Prudencial Supervision in the Process of Deposit Insurance

2004 ◽  
pp. 98-106
Author(s):  
Sh. Abdullaev
Keyword(s):  
Present State ◽  
Commercial Banks ◽  
Deposit Insurance ◽  
Foreign Investors ◽  
Low Level ◽  
Banking Systems ◽  
The Creation

The present state of the banking systems in the post-Soviet countries is characterized by a low level of liquidity and the situation in the economy does not allow to rely upon attracting resources of foreign investors in meaningful volumes. That is why the main sources of monetary funds are the savings of citizens. The creation of governmental deposit insurance systems could overcome the situation of steady mistrust of population in depositing their savings with commercial banks and help return these funds into economic turnover.

scholarly journals Determinants of the credit risk in developing countries: a case of Kosovo banking sector

2017 ◽  
Vol 12 (4) ◽  
pp. 90-97 ◽  
Author(s):  
Jehona Shkodra ◽  
Hysen Ismajli
Keyword(s):  
Social Sciences ◽  
Credit Risk ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Risk Exposure ◽  
Limited Data ◽  
Limited Participation ◽  
Banking Systems ◽  
Statistical Program

The determinant of the credit risk of banks in a developing country have limited data to analyze and limited participation in literature. Determinants of credit risk are very important in order to define the non-performing loans (NPL) in Kosovo banking systems. Even though banking system in Kosovo is the newest in region, it is comparable with banking systems to all places in regions (Albania, Serbia, Montenegro, Macedonia, Bosnia and Herzegovina, etc.).The main purpose of this paper is to classify some factors that influence credit risk in commercial banks in Kosovo. The research includes seven commercial banks for the period 2006–2015. Data analysis and interpretation are processed with Statistical Program for Social Sciences SPSS v.19.0.The effect of variations in the determinants of credit risk exposure is based on using a multivariate panel regression model. Our empirical results suggest that a significant relationship exists between credit risk and the following variables: Profitability (ROE and ROA), Inefficiency (IE), Loans to deposit ratio (LDR), Credit growth (CG) and Deposit rate (DR), while variables of Solvency (SR) and Credit rate (CR) are not statistically significant in terms of credit risk.

scholarly journals Factors Affecting Customers’ Experience in Mobile Banking of Bangladesh

2019 ◽  
pp. 37-49
Author(s):  
Dr. Nazrul Islam ◽  
Mohitul Ameen Ahmed Mustafi ◽  
Md. Nafizur Rahman ◽  
Nowshin Nower ◽  
Md. Mostafa Asef Rafi ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Present Situation ◽  
Descriptive Statistics ◽  
Mobile Banking ◽  
Factors Affecting ◽  
Banking Systems ◽  
The World ◽  
Transaction Security ◽  
Speed And Accuracy ◽  
Day By Day

Bangladesh is a densely populated country of the world. More than 170 million people live in this country. Mobile banking is a very important and new phenomenon in Bangladesh. In recent years, mobile banking has got highest importance by the customers in the country as it provides immense scope for consumers for banking transactions at any time with the option to access bank’s facilities anywhere of the country. It is a subset of electronic banking, the use of which is increasing day by day in Bangladesh. Hence, this paper aims at indentifying the factors that influence the customer experience in mobile banking in Bangladesh. This study is based on a survey of 231 mobile banking customers of nine private commercial banks of Bangladesh. Literature review identified some factors related to mobile banking like convenient and responsive system, transaction speed and accuracy, reliability, transaction security in ATM booth and technological difficulty that affect customers’ experience in mobile banking systems etc. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics were used to describe the present situation of the mobile banking systems in Bangladesh.

THE ROLE OF DIGITALIZATION IN THE BANKING SECTOR IN INCREASING THE STABILITY OF THE FINANCIAL MARKET

2021 ◽  
Author(s):  
Екатерина Петровна Рамзаева ◽  
Оксана Викторовна Кравченко
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Banking Sector ◽  
Digital Economy ◽  
Banking Systems ◽  
The Stability

В статье рассмотрены основные аспекты развития коммерческих банков в условиях цифровизации экономики. Основной целью данной публикации является определение роли цифровизации как фактора повышения конкурентоспособности банковских систем. The article discusses the main aspects of the development of commercial banks in the digital economy. The main purpose of this publication is to determine the role of digital advertising as a strategy for the competitiveness of banking systems.

scholarly journals Makro- i mikrootoczenie banków komercyjnych w Polsce – główne tendencje i czynniki

2015 ◽  
Vol 1 (3) ◽  
pp. 137-149
Author(s):  
Monika Pettersen-Sobczyk
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Banking Systems

The text analyses macro- and microenvironment of commercial banks in Polandin order to evaluate their position vis-à-vis banks in other European states. AlthoughPolish banking system is not as developed as the banking systems of other Europeanstates, the situation is changing substantially and the differences diminish.

Role of Commercial Banks in Financial Literacy

PRODUCTIVITY ◽  
2018 ◽  
Vol 59 (2) ◽  
pp. 186-197
Author(s):  
M. SELVAKUMAR ◽  
◽  
P. ANBUCHEZHIENKAMARAJ ◽  
V. Sathyalakshmi ◽  
R. Mohammed Abubakkar Siddique ◽  
...  
Keyword(s):  
Financial Literacy ◽  
Commercial Banks
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