scholarly journals Research on the Impact of Financing Liquidity on Risk-taking of Commercial Banks

2019 ◽  
Vol 267 ◽  
pp. 04012
Author(s):  
Yumeng Bu
Keyword(s):  
Risk Taking ◽  
Financial Crises ◽  
Commercial Banks ◽  
Mutual Influence ◽  
Risk Exposure ◽  
External Financing ◽  
Internal Financing ◽  
The Impact ◽  
The Relationship ◽  
Bank Risks

Insufficient liquidity and maturity mismatches lead to bank risks and financial crises. After Basel III included the net stable funding ratio into regulatory indicators, the relationship between the liquidity indicators represented by the net stable capital ratio and the bank's risk exposure triggered discussions among domestic and foreign scholars. This paper uses the data of China's commercial banks, mainly discussing the mutual influence of internal financing liquidity and external financing liquidity on the risk exposure of banks, and then putting forward some suggestions on how to reduce bank risks through financing liquidity.

scholarly journals Deposit Insurance and Bank Risks in Vietnam

2016 ◽  
Vol 10 (2) ◽  
pp. 46
Author(s):  
Pham Thi Chi ◽  
Dao Thanh Binh
Keyword(s):  
Risk Taking ◽  
Risk Premium ◽  
Deposit Insurance ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Banking System ◽  
Credit Default ◽  
The Impact ◽  
The Relationship ◽  
Bank Risks

The relationship between deposit insurance and banking risks has been widely studied, but has been the subject of relatively few empirical studies, especially for Vietnamese banking system. This research aims to explore the effect of deposit insurance on banks’ risk taking in Vietnam. The paper employs 7 bank specific variables and 2 macroeconomic variables, as well the premium paid by banks as variables for the regression models used. The results suggest that deposit insurance does impact banks’ risk taking incentive but it has different effects on each type of risk. It is concluded that credit, default and leverage risk are found to have a negative relationship with deposit insurance, while leverage and deposit insurance have a positive relationship, which may help banks and supervisors in their decision for the deposit risk premium. This paper contributes to the existing literature by help to understand the impact of deposit insurance on banks risk taking behavior in Vietnamese banks.

scholarly journals Effects of the COVID-19 Pandemic on Sports Entrepreneurship

2020 ◽  
Vol 12 (20) ◽  
pp. 8493
Author(s):  
Paloma Escamilla-Fajardo ◽  
Juan M. Núñez-Pomar ◽  
Ferran Calabuig-Moreno ◽  
Ana M. Gómez-Tafalla
Keyword(s):  
Service Quality ◽  
Risk Taking ◽  
Non Profit ◽  
Paired Sample ◽  
Sports Clubs ◽  
Before And After ◽  
The Impact ◽  
The Relationship ◽  
Linear Regressions ◽  
Crisis Situations

Sports entrepreneurship has been considered an important part of sports organisations when overcoming crisis situations. The aim of this study is to determine the impact of the crisis derived from COVID-19 on sports entrepreneurship and whether there are differences in the prediction of entrepreneurship on service quality in non-profit sports clubs. To this end, 145 sports clubs were analysed before and after the outbreak of the virus in society. Paired sample-t tests were carried out to determine the differences in variables studied before (Time I) and after (Time II) the COVID-19 outbreak, and correlations and hierarchical linear regressions were used to analyse the relationship between the variables studied in the two different stages. The results obtained show that risk-taking and innovation are significantly higher after the appearance of COVID-19, while proactivity has not undergone significant changes. Finally, the relationship between sports entrepreneurship and service quality is positive and significant in both stages but stronger before the crisis.

Financial and social efficiency analysis of Islamic microfinance institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marwa Fersi ◽  
Mouna Bougelbène
Keyword(s):  
Capital Structure ◽  
Credit Risk ◽  
Risk Taking ◽  
Negative Impact ◽  
Microfinance Institutions ◽  
Social Efficiency ◽  
Content Type ◽  
Islamic Microfinance ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper was to investigate the impact of credit risk-taking on financial and social efficiency and examine the relationship between credit risk, capital structure and efficiency in the context of Islamic microfinance institutions (MFIs) compared to their conventional counterparts.Design/methodology/approachThe stochastic frontier approach was used to estimate the financial and social efficiency scores, in a first step. In a second step, the impact of risk-taking on efficiency was evaluated. The authors also took into account the moderating role of capital structure in this effect using the fixed and random effects generalized least squares (GLS) with a first-order autoregressive disturbance. The used dataset covers 326 conventional MFIs and 57 Islamic MFIs in six different regions of the world over the period of 2005–2015.FindingsThe overall average efficiency scores are less than 50%, where CMFIs could have produced their outputs using 48% of their actual inputs. IMFIs record the lowest financial (cost) efficiency that is equal to 28% on average. The estimation results also reveal a negative impact of nonperforming loan on financial and social efficiency. Finally, the moderating effect of leverage funding on the relationship between credit risk-taking and financial efficiency was confirmed in CMFIs. However, leverage seems to moderate the effect of risk-taking behavior on social efficiency for IMFIs.Originality/valueThis paper makes an initial attempt to evaluate the effect of risk-taking decision and its implication on efficiency and MFIs' sustainability. Besides, it takes into consideration the role played by the mode of governance through the ownership structure. In addition, this research study sheds light on the importance of the financial support for the development and sustainability of these institutions, which in return, contributes to a sustainable economic development.

scholarly journals The impact of capital ratio on lending of EU banks – the role of bank specialization and capitalization

Equilibrium ◽  
2016 ◽  
Vol 11 (1) ◽  
pp. 43 ◽  
Author(s):  
Małgorzata Olszak ◽  
Mateusz Pipień ◽  
Sylwia Roszkowska
Keyword(s):  
Commercial Banks ◽  
Robust Estimator ◽  
Bank Capital ◽  
Savings Banks ◽  
Cooperative Banks ◽  
Lending Activity ◽  
The Impact ◽  
The Relationship

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between loans growth and capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative banks and savings banks. We also expect that this effect is nonlinear, and is stronger in “low” capital banks than in “high” capital banks. In order to test our hypotheses, we apply the two-step GMM robust estimator for data spanning the years 1996–2011 on individual banks available in the Bankscope database. Our analysis shows that lending of poorly capitalized banks is more affected by capital ratio than lending of well-capitalized banks. Loans growth of cooperative and savings banks is more capital constrained that lending of commercial banks. Capital matters for the lending activity in contractions only in the case of savings and “low” capital banks.

scholarly journals Prediction and comparison of the impact of COVID-19 epidemic on the financial industry of major countries based on neural intelligent algorithm

2020 ◽  
Vol 39 (6) ◽  
pp. 8831-8838
Author(s):  
Bin Wang ◽  
Qingyuan Zhou
Keyword(s):  
United States ◽  
Global Economy ◽  
Mutual Influence ◽  
The United States ◽  
Household Consumption ◽  
Intermediate Input ◽  
Financial Industry ◽  
Government Consumption ◽  
The Impact ◽  
The Relationship

The global economy appears the trend of anti-globalization under the influence of COVID-19. Based on the input-output table of lead database from 2006 to 2020, this paper divides the factors that affect the development of financial industry in China, the United States and Russia into six aspects: price, intermediate input, household consumption, government consumption, export and import. ADGA-BP neural network model is proposed in this paper, which is based on six aspects of price, intermediate input, consumer, government consumption, export and import. The intermediate input is decomposed from the perspective of industrial structure to study the interrelationship between financial industry and other industries in the three countries. The results show that the intermediate input is the main factor in the development of financial industry in the three countries, but the source industries of the intermediate input are not the same; the two factors of household consumption and price are closely related to the development of financial industry in the three countries, and they all play a role in promoting China, while the relationship between household consumption and the United States and between price and Russia is reverse; Government consumption only has a significant impact on Russia; from the perspective of mutual influence, the mutual investment between the financial industry of China and the United States is relatively large, while the relationship between the Russian financial industry and the two countries is relatively weak. It shows that under the background of covid-19, the development of financial industry is affected.

A study of the relationship between employee wage and commercial banks efficiency in China

2016 ◽  
Vol 7 (2) ◽  
pp. 147-159
Author(s):  
Jiangtao Li ◽  
Jianyue Ji ◽  
Yanxia Wang
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Calculated Data ◽  
Wage Structure ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

Purpose Efficiency of a commercial bank affects both its competitiveness and the role it plays in the process of economic development. Although great efforts have been exerted in developing the various aspects of banking efficiency, there seems to be a lack of research on examining the impact of the bank efficiency from the employee wage perspective. The mechanism of how employee wage affects commercial bank efficiency and the relationship between the two were analyzed in this paper. Based on the growing body of research on efficiency in banking, the aim of this paper is to examine if competitiveness of employee wages at any commercial bank has any impact on the bank efficiency score. Design/methodology/approach The method used was quantitative analysis, which was based on comparing the evaluated efficiencies of the banks with employee wages published in the bank reports. The empirical data in this paper were based on 16 Chinese listed commercial banks from 2004 to 2012. The per capita wage of commercial banks was selected as the wage indicator, and the efficiency value obtained by the slack-based measure (SBM) model was selected as the efficiency indicator. According to the calculated data, the Tobit regression model was built to analyze the relationship between employee wage and commercial bank efficiency. Findings The research results show that employee wage is the key variable that influences the efficiency of Chinese commercial banks, and the inverted U-shaped relationship between employee wage and commercial banks efficiency shows up. Practical implications The wage structure data of the composition of basic pay and bonus were not available at the time of conducting the research. Per capita wages were used instead to reflect the employee wage levels of Chinese banks. Originality/value This study can provide some help for the banking industry by analyzing the wage levels from the perspective of efficiency and also further enriches the theoretical system of the relationship between employee wage and bank efficiency.

scholarly journals An Incentive for Risk Taking: The Case of Banks in ASEAN 6

2020 ◽  
Vol 11 (5) ◽  
pp. 129
Author(s):  
Thanh Phu Ngo
Keyword(s):  
Credit Risk ◽  
Technical Efficiency ◽  
Risk Taking ◽  
Commercial Banks ◽  
Small Banks ◽  
Bank Risks

Incorporating credit risk into technical efficiency to investigate possible effects of the risk on efficiency for a sample of 276 unique ASEAN commercial banks over the period 2000 -2015, we find a striking U-shaped effect of credit risk on both risk-free efficiency and risk-adjusted efficiency. The U-shaped relationship exists in both large banks and small banks. This finding is new and raises a concern for bank regulators in monitoring and controlling bank risks since banks have an incentive to become more efficient by following greater risk-taking strategies.

scholarly journals Generic competitive strategies on organizational performance in Nepalese Commercial Banks

Pravaha ◽  
2020 ◽  
Vol 25 (1) ◽  
pp. 87-94
Author(s):  
Jitendra Pd. Upadhyay ◽  
Pitri Raj Adhikari
Keyword(s):  
Organizational Performance ◽  
Commercial Banks ◽  
Core Competency ◽  
Multiple Regression Model ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Impact ◽  
The Relationship

This paper attempts to examine the impact of generic competitive strategy on organizational performance in Nepalese commercial banks. It has employed descriptive and causal comparative research design to estimate the relationship between dependent variable (organizational performance) with independent variables (differentiation strategy, cost leadership strategy, focus strategy, organization’s core competency and bank size). Data has been collected from 384respondents by using structured questionnaire. The multiple regression model has been used to test the relationship. It is found that organizational performance of banks is influenced by cost leadership, differentiation, focus, organization ‘score competency and bank size.

Financial Regulation

2011 ◽  
Vol 216 ◽  
pp. F4-F9 ◽  
Author(s):  
Ray Barrell ◽  
E. Phillip Davies
Keyword(s):  
Risk Taking ◽  
Financial Crises ◽  
Financial Regulation ◽  
Banking Regulation ◽  
Committee Report ◽  
Costs And Benefits ◽  
Basel Committee ◽  
The Core ◽  
The World ◽  
The Relationship

The financial crisis that engulfed the world in 2007 and 2008 has led to a wave of re-regulation and discussion of further regulation that has culminated in the proposals from the Basel Committee as well as those in the Vickers Committee report on Banking Regulation and Financial Crises. This issue of the Review contains a number of papers on Banking Regulation, covering many aspects of the debate, and we can put that debate in perspective through these papers and also by discussing our work on the relationship between bank size and risk taking, which is reported in Barrell et al. (2011). We addressed the causes of the crisis in the October 2008 Review, and began to look at the costs and benefits of bank regulation in Barrell et al. (2009). In that paper we argued that we needed to know the causes of crises and whether the regulators could do anything to affect them before we discussed new regulations. It is now generally agreed that increasing core capital reduces the probability of a crisis occurring, and most changes in regulation that are being discussed see this as the core of their toolkit. The work by the Institute macro team in Barrell et al. (2009) and in Barrell, Davis, Karim and Liadze (2010) was the first to demonstrate that there was a statistically important role for capital in defending against the probability of a crisis occurring, and our findings were widely used in the policy community in the debate over reform.

scholarly journals The Impact of Social Responsibility Disclosure in Reducing the Risk in Jordanian Commercial Banks

2020 ◽  
Vol 11 (3) ◽  
pp. 142
Author(s):  
Yousef Shahwan ◽  
Oways Abdel-hamid
Keyword(s):  
Social Responsibility ◽  
Stock Prices ◽  
Commercial Banks ◽  
Financial Reports ◽  
The Social ◽  
Dependent Variables ◽  
Simple Regression Analysis ◽  
The Impact ◽  
The Relationship ◽  
Simple Regression

This study investigates the impact of disclosure of social responsibility in reducing risks in Jordanian commercial banks. To realize the goal of this study, the researcher followed the descriptive-analytical method. The data of the study sample was gathered from the financial reports of the listed banks on the Amman Financial Market that pertain to stock prices and market return in the period 2014-2018. The study used simple regression analysis to examine the relationship between independent and dependent variables. Among the most prominent findings of the study, there is an impact of the social responsibility disclosure in reducing risks, as well as an effect of the dimensions of social responsibility: the environment, customers and employees in reducing risks.

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