scholarly journals Financial innovation and the golden ages of international banking: 1890–1931 and 1958–81

2000 ◽  
Vol 7 (2) ◽  
pp. 141-175 ◽  
Author(s):  
STEFANO BATTILOSSI
Keyword(s):  
Twentieth Century ◽  
Commercial Banks ◽  
Financial Intermediation ◽  
Financial Innovation ◽  
International Banking ◽  
Wholesale Market ◽  
Process Innovations ◽  
Financial Innovations ◽  
Global Liquidity ◽  
Industrialised Countries

Stefano Battilossi, Financial innovation and the golden ages of international banking: 1890–1931 and 1958–81Throughout the twentieth century, the internationalisation of banking was both a factor for, and an ensuing aspect of, rising globalisation. During the period 1890–1931, commercial banks of industrialised countries promoted organisational and process innovations that successfully challenged the dominance of merchant banks in international financial intermediation. International banking re-emerged from interwar nationalistic retrenchment during the late 1950s, when banks exploited regulatory asymmetries to foster the emergence of Eurocurrency markets. Eurobanks provided not only global liquidity redistribution but also portfolio transformation services to corporate and sovereign customers. Financial innovations related to Eurobanking mark a secular discontinuity as they proved to be vehicles of a banking revolution, based on competition, deregulation and wholesale-market funding.

scholarly journals Nexus Between Financial Innovation and Financial Intermediation in Nigeria’s Banking Sector

2021 ◽  
Vol 4 (3) ◽  
pp. 162-179
Author(s):  
Ejinkonye R.C. ◽  
Okonkwo I.V.
Keyword(s):  
Significant Relationship ◽  
Commercial Banks ◽  
Financial Intermediation ◽  
Financial Innovation ◽  
Internet Banking ◽  
Mobile Banking ◽  
Point Of Sale ◽  
Financial Innovations ◽  
Start Ups ◽  
The Relationship

This study evaluated the relationship between financial innovation and financial intermediation in Nigeria. It seems that banks in Nigeria may have a problem of deposit-loan mismatch and losing customers to start-ups given increasing cost of deposits attributable to disruptive practice arising from financial innovations. The specific objectives of this study were to examine the relationship between financial innovation (value of the automated teller machine, internet banking, mobile banking, point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria for the period 2009–2018. This study was anchored on the financial innovation theory of Joseph Schumpeter, which states that technology creates opportunities for new profits and super profits as a result of increased investment by banks or financial institutions on products of innovation. The ordinary least square was used to estimate the parameters. The data used were extracted from the Central Bank of Nigeria statistical bulletin. The results showed that there is a positive and significant relationship between financial innovation (value of Automated Teller Machine) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (internet banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (mobile banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; and there is no positive and significant relationship between financial innovation (point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria. The f-test result showed that financial innovations proxies jointly related significantly to commercial banks’ deposits. The work concludes that financial innovations contributed to commercial banks’ deposits in Nigeria. The researchers recommended among others that banks should improve on the security of transactions done on their platforms, continue to improve and partner with start-ups in technological infrastructure, improve on power and network stability, deploy more innovative products, and improve on the efficiency of bank staff by regular training.

Statistical and bibliometric analysis of financial innovation

2019 ◽  
Vol 38 (2) ◽  
pp. 308-319
Author(s):  
Ting-Hsuan Chen ◽  
Jin-Lung Peng
Keyword(s):  
Commercial Banks ◽  
Policy Making ◽  
Design Methodology ◽  
Liquidity Risk ◽  
Financial Innovation ◽  
Bank Performance ◽  
Content Type ◽  
Financial Innovations ◽  
Financial News ◽  
Financial Technology

Purpose The purpose of this paper is to review and analyze the characteristics of the literature related to financial innovation, because financial technology (fintech) has been appropriately applied in academic circles as well as in the policy-making arena. The authors further estimate the implications of financial innovations for bank performance and liquidity risk. Design/methodology/approach The authors use a sample of commercial banks operating in Taiwan over the period 2010–2017 and utilize three proxies for financial innovation including R&D expenditures, financial patents (i.e. innovation applications) and financial news such as that concerning fintech (i.e. innovation intentions). Findings The effects of financial innovation on bank performance are mixed, with too much of R&D expenditures having the worst bank performance, whereas innovation intentions benefit their performance. The paper concludes that financial innovation does increase banks’ liquidity risk, thus supporting the innovation-fragility hypothesis. Originality/value It is an important issue in academic circles as well as in the policy-making arena to ensure that financial innovation has been appropriately applied.

scholarly journals Effect of Technology Based Financial Innovations on Non-Interest Income of Commercial Banks in Kenya

2018 ◽  
Vol 14 (7) ◽  
pp. 337
Author(s):  
L’souza Boniface Alubisia ◽  
Wainaina Githii ◽  
Mirie Mwangi
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Financial Innovation ◽  
Mobile Banking ◽  
Financial Industry ◽  
Descriptive Research ◽  
Financial Innovations ◽  
Interest Income ◽  
Impact Of Technology ◽  
The Impact

Technology based financial innovation has had a great impact on the financial industry as a whole over the past few decades. It has presented the banking sector with an opportunity to increase the revenue base. This study intended to identify the impact of technology based financial innovation on non-interest income in Kenyan commercial banks. The study investigated how the adoption of ATMs and Cards, Internet and Mobile Banking and use of Funds Transfer Systems such as RTGS and EFT has impacted the non-interest income of commercial banks in Kenya. Descriptive research design was utilised. The study found that technology based financial innovation has significant effect on the non-interest income earned by commercial banks in Kenya. It recommends all stakeholders in commercial banks to take any investments made towards technology based financial innovation products as a strategy to improve non-interest income

Financial Innovations and Performance of Commercial Banks in Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 21-33
Author(s):  
Naomi Wanja Ireri ◽  
Gladys Kimutai
Keyword(s):  
Rural Areas ◽  
Commercial Banks ◽  
Internet Banking ◽  
Ease Of Use ◽  
Primary Data ◽  
The Internet ◽  
Mobile Banking ◽  
Good Opportunity ◽  
Financial Innovations ◽  
Automated Teller Machine

Commercial banks in Kenya have embraced alternative banking channels which represent a shift in delivery of banking and financial services since the alternative banking have become synonymous with commercial banks in Kenya. While banks have succeeded in leveraging available technology and provide alternative avenues to customers for banking services, the challenge it faces today is optimizing the usage of these channels so as to improve on their performance. The general objective of this study was to investigate the effects of financial innovations on the performance of commercial banks in Kenya. The specific objectives of the study were to examine the influence of internet banking, mobile banking, agency banking and ATM banking on the performance of commercial banks in Kenya. The study was guided by agency theory, balanced score card and diffusion of innovation theory. This study employed a descriptive research design. The study targeted44 commercial banks in Kenya as at 2017. The 16 banks which embrace all the four financial innovations from 2013 to 2017were selected using purposive sampling method. The sample size was 80 respondents who comprised of 5 senior management employees in each of the selected banks.This study used questionnaire to collect primary data from the respondents. Content analysis technique was used to analyze qualitative data collected from open ended questions in and reported in narrative form. Descriptive statistics such as mean and standard deviation were used to analyse the quantitative data. Multiple regression analysis was used to show the relationship between independent variables against dependent variable. The study revealed that internet banking, mobile banking, agency banking and ATM banking had a positive and significant effect on the performance of commercial banks. Thisstudy concludes that the banking industry has benefited tremendously from the development of the Internet. The Internet fundamentally changed the way in which banking networks are designed to meet the client demands and expectations. Mobile banking provides a good opportunity to commercial banks in Kenya to reach many mobile phone subscribers in Kenya who had remained unbanked and unreached due to limited access to bank branch networks in the country. The access to the large masses through mobile banking of the population gives banks the opportunity to grow by reaching the unbanked population. Agency banking has led to accessibility of financial service to many customer in remote areas and hence an increase in effectiveness and efficiency in service delivery. Customers are satisfied with the automated teller machine services because of ease of use, transaction cost and service security but not satisfy with automated teller machine dispense of cash. The study recommends that the public and businesses must be encouraged to use Internet banking in their daily activities, including deposits, payments and money transfers. Commercial banks in Kenya should ensure convenience and security of mobile banking through written guidelines on convenience and security of mobile banking. Commercial banks in Kenya should increase the number of agents in estates and in the rural areas. This can be done by reducing the requirements of becoming a bank agent. The banks should employ customized software that records relevant information on automated teller machine cards so that banks can establish whether unauthorized transaction has taken place or not.

Non-banking financial intermediation and phenomena of shadow money in modern economy

2021 ◽  
Vol 27 (8) ◽  
pp. 1694-1709
Author(s):  
Vladimir K. BURLACHKOV
Keyword(s):  
Commercial Banks ◽  
Financial Intermediation ◽  
Banking System ◽  
Banking Regulation ◽  
Developed Countries ◽  
Bank Credit ◽  
Shadow Banking ◽  
Economic Agents ◽  
Shadow Banking System ◽  
Lending Activity

Subject. The article addresses the non-banking financial intermediation (shadow banking system) as it is successfully expanding nowadays both in developed countries and emerging economics. Objectives. The study aims at conducting a comprehensive analysis of the specifics of non-banking financial intermediation, revealing its impact on economic agents’ activities, causes and consequences, and elaborating the methodological framework for effectiveness of modern monetary policy. Methods. I employ methods of scientific abstraction, induction, deduction, synthesis, and comparative analysis. Results. In the modern national economy, along with the money, created by the central bank and commercial banks, there are highly liquid financial instruments called shadow money. The scope of its application is shadow banking (financial intermediation) outside the banking system. The use of shadow money is caused by high demand for credit resources. Conclusions. The high activity of shadow banking and increased turnover of shadow money resulted from a transfer to Basel standards of banking regulation in the 1990s, which affected the lending activity of commercial banks. Under these conditions, the demand for loans provided by non-bank credit and financial institutions increased. The market of non-bank credit products was formed. However, the process of lending in the shadow banking is associated with high risks and non-stability of shadow money, widely used in this sphere.

scholarly journals Financing innovative development of the African economies: the role of digitalization and financial innovations

2020 ◽  
Vol 28 (3) ◽  
pp. 429-439
Author(s):  
Tijani Forgor Alhassan ◽  
Ahou Julie Kouadio ◽  
Dadson Etse Gomado
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Positive Relationship ◽  
Financial Innovation ◽  
Sub Saharan Africa ◽  
Innovative Development ◽  
Mobile Banking ◽  
Data Set ◽  
Financial Innovations ◽  
Sub Saharan

The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.

scholarly journals COMPETITION OF TRANSNATIONAL BANKS: MAIN TRENDS AND WAYS OF DEVELOPMENT

2021 ◽  
pp. 151-157
Author(s):  
Надежда Константиновна Савельева ◽  
Татьяна Алексеевна Тимкина
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Competitive Advantages ◽  
International Banking ◽  
Statistical Research ◽  
Cross Border ◽  
The World ◽  
Financial Transactions ◽  
Level Analysis

Статья посвящена проблемам сохранения конкурентных преимуществ коммерческих банков для осуществления финансовых операций на трансграничных рынках. Целью исследования является анализ основных тенденций развития деятельности транснациональных банков в условиях глобализации. Объектом исследования являются мировые лидеры международной банковской сферы. Научная новизна заключается в разработке основных направлений развития банковской системы на международном уровне, результатах анализа опыта лидирующих транснациональных банковских компаний в условиях пандемии The article is devoted to the problems of maintaining the competitive advantages of commercial banks for the implementation of financial transactions in cross-border markets. The aim of the study is to analyze the main trends in the development of the work of transnational banks in the context of globalization. The object of research is the world leaders of the international banking sector. In the process of research, the authors have analyzed theoretical and practical material used in general methods of scientific knowledge and statistical research. Scientific novelty lies in the development of the main directions for the development of the banking system at the international level, analysis of the experience of leading transnational banking companies in the context of a pandemic.

Moneylending in Myth and Practice in Twentieth-Century Mexico

2018 ◽  
Vol 34 (2) ◽  
pp. 143-164
Author(s):  
Nicole Mottier
Keyword(s):  
Twentieth Century ◽  
Financial Intermediation ◽  
Financial Intermediaries

This article demonstrates that ejidatarios sometimes actively sought loans from moneylenders alongside other lenders, such as the Banco Ejidal, as one strategy for managing the uncertainties that shaped their lives. It asserts that moneylenders proved to be very important financial intermediaries for rural borrowers. By explicating how and why they continued existing alongside formal financial intermediaries such as the Banco Ejidal, this article offers a more nuanced way of understanding financial intermediation. Este artículo demuestra que en ciertas ocasiones los ejidatarios buscaron activamente los servicios de prestamistas–así como de otras entidades de crédito, por ejemplo, el Banco Ejidal–como estrategia para manejar la incertidumbre que caracterizaba sus vidas. El artículo reafirma que los prestamistas resultaron ser intermediarios financieros de gran importancia para los prestatarios rurales. Al explicar cómo y por qué continuaron existiendo estos prestamistas al lado de intermediarios financieros formales como el Banco Ejidal, este artículo contribuye a un entendimiento más matizado sobre la intermediación financiera.

Part I General Aspects, 5 The Disclosure Paradigm: Conventional Understandings and Modern Divergences

2020 ◽  
Author(s):  
Hu Henry T C
Keyword(s):  
United States ◽  
Technological Innovation ◽  
Financial Innovation ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Financial Innovations ◽  
The Core ◽  
Corporate Governance Mechanisms ◽  
Core Mission ◽  
General Aspects

This chapter focuses on the United States' (US) disclosure paradigm. It explains that the disclosure paradigm contemplates a unique regulatory role for the Securities and Exchange Commission (SEC). Here, the fulfilment of its core mission is essential not only to investor protection and market efficiency, but to a wide variety of transparency-dependent corporate governance mechanisms. Financial innovation is contributing to a ‘too complex to depict’ problem that brings into question the sufficiency of the core approach to information that the SEC has used since its creation. Moreover, particular financial innovations pose product-specific challenges to the fulfilment of the SEC's mission. Additionally, changing conceptions of the ends to be achieved by public disclosure, within the SEC disclosure system itself and pursuant to a new disclosure system driven by regulators with far different mindsets, raise new issues. It is now demonstrable that the new modes of information and the alternative data made possible by technological innovation can help address some of the disclosure challenges posed by financial innovation. At the same time, these new modes and alternative data introduce regulatory complexities. The chapter thus concludes that modern divergences are making life interesting for regulators, practitioners, and academics alike.

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