The impact of liquidity risk in the Chinese banking system on the global commodity markets

2021 ◽  
Author(s):  
Yonghwan Jo ◽  
Jihee Kim ◽  
Francisco Santos
Keyword(s):  
Banking System ◽  
Liquidity Risk ◽  
Commodity Markets ◽  
The Impact ◽  
Global Commodity Markets ◽  
Chinese Banking

scholarly journals Does competition only impact on insolvency risk? New evidence from the Chinese banking industry

2017 ◽  
Vol 13 (3) ◽  
pp. 332-354 ◽  
Author(s):  
Yong Tan ◽  
John Anchor
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Industry ◽  
Liquidity Risk ◽  
Empirical Literature ◽  
Content Type ◽  
Insolvency Risk ◽  
Chinese Banking Industry ◽  
The Impact ◽  
Chinese Banking

Purpose The purpose of this paper is to investigate the impact of competition on credit risk, liquidity risk, capital risk and insolvency risk in the Chinese banking industry during the period 2003-2013. Design/methodology/approach This study uses a generalized method of moments system estimator to examine the impact of competition on risk. In particular, translog specifications are used to measure the competition and insolvency risk. Findings The results show that greater competition within each bank ownership type (state-owned commercial banks, joint-stock commercial banks and city commercial banks) leads to higher credit risk, higher liquidity risk, higher capital risk, but lower insolvency risk. Originality/value This paper is the first piece of research testing the impact of competition on different types of risk in banking industry and it further contributes to the empirical literature by using a more accurate competition indicator (efficiency-adjusted Lerner index) and a more precise insolvency risk indicator (stability inefficiency).

scholarly journals Assessment of the Impact of Globalization on the Development of the Russian Transport System

2021 ◽  
Vol 92 ◽  
pp. 07048
Author(s):  
Victor Podsorin ◽  
Elena Ovsiannikova
Keyword(s):  
Conceptual Model ◽  
Transport System ◽  
Methodological Approach ◽  
Value Added ◽  
Commodity Markets ◽  
Tariff Policy ◽  
Transport Component ◽  
The Cost ◽  
The Impact ◽  
Global Commodity Markets

Research background: The article describes the main trends in the globalization of economic processes, analyses the economic situation of world commodity markets, considers factors that influence the development of the transport system of Russia, defines the transport component in the cost of bulk cargo transported by Russian railways, presents a conceptual model of its formation for the purpose of improving tariff policy and competitiveness. A study of the dynamics of market conditions helps to identify factors that increase the efficiency of interaction between cargo-forming enterprises and organizations with the transport complex, develop and justify a system of measures to increase the efficiency of the transport system and ensure the sustainability of the national economy, as well as identify factors that contribute to globalization and the integration of production processes of transnational structures into the world economic system. Purpose of the article: To develop a methodological approach to assessing the impact of global commodity markets in the context of the globalization of economic processes on the development of the transport system of Russia. Methods: Analysis, classification, deduction, economic and mathematical modelling. Findings & Value added: The developed conceptual model for assessing the impact of global commodity markets in the context of the globalization of economic processes on the development of the country’s transport system contributes to the improvement of the tariff policy in the field of freight transportation, creates favourable conditions for increasing freight volumes for both transit and export-import cargoes.

scholarly journals The Macroeconomic Factors Impact on Liquidity Risk: The Albanian Banking System Case

2017 ◽  
Vol 7 (1) ◽  
pp. 32 ◽  
Author(s):  
Doris Madhi
Keyword(s):  
Financial Crisis ◽  
Risk Evaluation ◽  
Banking System ◽  
Liquidity Risk ◽  
Foreign Markets ◽  
Macroeconomic Factors ◽  
The Public ◽  
Recent Financial Crisis ◽  
Evaluation And Monitoring ◽  
The Impact

Over the last five years, the Albanian banking system has experienced a deceleration on its activity, considering the recent financial crisis effects. The financial crisis did not propagate direct effects on the Albanian financial system, but indirect effects were visible based on the general slowdown of the foreign markets and public loss of confidence towards the banking system. Also, the foreign remittances decrease and the liquidity shortage of the public played an important role on the capacity to meet the payment obligations (especially on loans). During 2009, the Albanian Central Bank issued a new regulation on liquidity risk evaluation, monitoring and management. The main objective of the regulation was the determination of the minimal evaluation standards of liquidity risk and its effective management by all banks operating on the Albanian territory. The liquidity risk evaluation and monitoring, as suggested also by the literature, does not depend only on internal financial indexes of banks, but it finds its basis also on broader indexes such as macroeconomic indexes. This analysis is effectuated on the impact and importance these factors have on liquidity risk, considering the banking system composed by 13 banks over a period of five years.

scholarly journals POST-CRISIS RESUMPTION OF EFFICIENCY OF THE BANKING SYSTEM IN UKRAINE

2019 ◽  
pp. 24-32
Author(s):  
Halyna Zabchuk
Keyword(s):  
Banking System ◽  
Commodity Markets ◽  
Interest Rate Policy ◽  
System Method ◽  
Methods Of Synthesis ◽  
National Bank ◽  
Rate Policy ◽  
The Interest Rate ◽  
Global Commodity Markets ◽  
Practical Recommendations

Introduction. Being influenced by deindustrialization of the national economy, the growth of its openness and dependence on development of the global commodity markets, as well the absence of relevant legislation and fair judiciary, the banking system of Ukraine is usually affected by negative external and internal shocks. Such situation leads to the emergence of protracted crises. The article analyses theoretical aspects of efficiency of a banking system, substantiates the main reasons of a decrease of efficiency of the banking system in Ukraine under conditions of the economic crisis, and considers prospective directions for solving problems concerned with the post-crisis resumption of efficiency of the domestic banking system. Purpose. The article’s purpose is to examine theoretical peculiarities of efficiency of a banking system, reasons of deterioration of efficiency of the banking system in Ukraine, and to form practical recommendations regarding post-crisis resumption of this system. Method (methodology). The author applies the following methods: methods of retrospective analysis in researching the main reasons, which have led to a decrease of efficiency of the banking system of Ukraine; methods of analogy and comparison for substantiating tendencies of changes in indicators of the banking system and macroeconomics; methods of statistical analysis for analysing number series of indicators of an exchange rate, the balance of payments, operative efficiency of the banking system; methods of synthesis and systematization in forming recommendations regarding enhancing efficiency of the domestic banking system. Results. The author substantiates the theoretical essence of a notion of banking system efficiency; indicates and substantiates pivotal reasons for a decrease of efficiency of the banking system of Ukraine during the crisis. The author has developed a set of recommendations regarding post-crisis resumption of efficiency of the domestic banking system through the foundation of a hospital bank, as well as optimization of the interest rate policy and mechanism for refinancing the National Bank of Ukraine.

scholarly journals Exploring the role of risk and corruption on bank stability: evidence from Pakistan

2019 ◽  
Vol 22 (2) ◽  
pp. 270-288 ◽  
Author(s):  
Muhammad Ali ◽  
Amna Sohail ◽  
Lubna Khan ◽  
Chin-Hong Puah
Keyword(s):  
Credit Risk ◽  
Positive Impact ◽  
Negative Relationship ◽  
Banking System ◽  
Liquidity Risk ◽  
Bank Stability ◽  
Content Type ◽  
Conventional Banks ◽  
Funding Risk ◽  
The Impact

Purpose This paper aims to explore the impact of liquidity risk, credit risk, funding risk and corruption on bank stability of the banking system in Pakistan. Design/methodology/approach The empirical analysis is confined to 24 retail banks, which include 5 Islamic and 19 conventional banks during the period of 2007-2015. Findings The findings of this study suggest that bank size, liquidity risk, funding risk and corruption exert a positive impact on bank stability. Additionally, the authors find a negative relationship between credit risk and bank stability. Originality/value As per the knowledge of the authors, the present research is the first attempt that discusses the issues of bank stability related to risk and corruption faced by the banking system.

scholarly journals Liquidity risk and regulation in the Organization of the Islamic Cooperation (OIC) banking industry

2021 ◽  
Vol 17 (2) ◽  
pp. 29-62
Author(s):  
Syajarul Imna Mohd Amin ◽  
Aisyah Abdul-Rahman ◽  
Nurhafiza Abdul Kader Malim
Keyword(s):  
Risk Management ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Liquidity Risk ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Islamic Banking ◽  
Private Monitoring ◽  
Conventional Banks ◽  
The Impact

The recurring crises have evidenced poor liquidity risk management and ineffective regulation in banking. Consequently, banking regulations have undergone continuous reforms to bolster stability in the banking system. Nonetheless, theoretical and empirical evidence provide conflicting results that warrant comprehensive research, particularly for emerging Islamic banking. This study examines the role of banking regulation on the liquidity risk of 245 conventional banks and 68 Islamic banks from selected 14 Organization of the Islamic Cooperation (OIC) from 2000 to 2017 utilising the dynamic panel GMM (generalized method of moments) technique. We measure liquidity risk using the Net Stable Funding Ratio (NSFR) and the total financing-to-total deposits and short-term funding (LDEP). Meanwhile, the regulatory measures are asset restriction (AR), private monitoring (PM), supervisory power (SP) and capital requirements (CR). The findings suggest that regulation has a limited impact on bank liquidity risk. The CR supports the value creation of regulation through the reduction in banks’ liquidity risks, while PM and SP are agency costs of regulation that lead to higher liquidity risks. The impact of CR is lower on liquidity risk in Islamic banking than conventional ones, probably due to limited Islamic liquidity risk management facilities. Thus, regulators should strengthen Islamic liquidity risk instruments and markets to facilitate Islamic banking growth.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

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