Other financial institutions' portfolio behaviour and policy implications: A study of India

2005 ◽  
Vol 19 (4) ◽  
pp. 543-562 ◽  
Author(s):  
Tomoe Moore ◽  
Christopher J. Green
Keyword(s):  
Financial Institutions ◽  
Policy Implications

Mobile Payment Issues and Policy Implications

2011 ◽  
pp. 88-101
Author(s):  
Y. Kwon
Keyword(s):  
Financial Institutions ◽  
Mobile Network ◽  
Policy Implications ◽  
Mobile Payment ◽  
Mobile Payments ◽  
Korean Economy ◽  
Banking Service ◽  
Payment Instruments ◽  
The Government ◽  
Mobile Network Operators

This chapter introduces three mobile payment plans that have been launched in Korea: mobile banking service, mobile prepaid electronic cash service and mobile phone bill service. Based on the recent experiences of the Korean economy, this chapter discusses the regulatory and monetary policy issues associated with mobile payments. Mobile payments are superior to existing means of payments because of their efficiency and convenience and mobile network operators (MNOs) are on the verge of turning into non-bank financial institutions in their nature. The government needs to facilitate the crossbreed between banks and MNOs to accelerate the development of efficient payment instruments rather than hindering innovation in banking industry.

scholarly journals Determinants of Off-Balance Sheet (OBS) Activities: A Case of Selected Retail Banks in Malaysia

2019 ◽  
Vol 14 (1) ◽  
pp. 95-113
Author(s):  
Oladokun Nafiu Olaniyi ◽  
◽  
Shamsul Kamariah Abdullah ◽  
Charmele Ayadurai ◽  
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Financial Stability ◽  
Generalized Method Of Moments ◽  
Balance Sheet ◽  
Policy Implications ◽  
Risk Transfer ◽  
Credit Risk Transfer ◽  
Balance Sheet Liquidity ◽  
The Stability

The present paper examines factors influencing the Off-Balance Sheet activities of selected commercial banks in Malaysia for the period 2004- 2014. OBS activities are an integral part of financial institutions in response to the needs of businesses for different types of guarantee that have conflicting implications on the stability of financial institutions. Data collected on selected banks from the Bankscope database was analyzed using the Generalized Method of Moments (GMM) regression. Specifically, the study built its analysis on three main recognized determining factors namely: (1) liquidity motives, (2) credit risk transfer motive, (3) profitability motives, and (4) capital arbitrage motive. The findings thus suggest that the selected banks mainly used OBS instruments for capital arbitrage purpose, enhancing operational efficiency and managing loan portfolio risks. The findings further suggested that its usage for capital arbitrage purposes may undermine the regulatory measures of accurately estimating and monitoring the risk of banks. The findings thus offer significant practical and policy implications that can help to enhance financial stability. Keywords: off-balance sheet, liquidity, credit risk transfer, profitability, capital arbitrage

scholarly journals Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

2021 ◽  
Vol 13 (18) ◽  
pp. 10165
Author(s):  
Guang-Wen Zheng ◽  
Abu Bakkar Siddik ◽  
Mohammad Masukujjaman ◽  
Nazneen Fatema
Keyword(s):  
Financial Institutions ◽  
Structural Equation ◽  
Developing Economies ◽  
Essential Element ◽  
The Body ◽  
Policy Implications ◽  
Equation Modeling ◽  
Factors Affecting ◽  
Sustainability Performance ◽  
Green Finance

Despite the increasing popularity of green finance and sustainable investment in the field of Sustainable Development Goals (SDGs), very few studies have investigated the effect of green finance dimensions on the sustainable performance of banks. Therefore, this study attempts to examine the dimensions of green finance and their effects on the sustainability performance of financial institutions in developing economies such as Bangladesh. The study also depicts the level of green financing adoption among the banks and non-bank financial institutions in the country between 2015 and 2020. Considering the nature of the dataset, the structural equation modeling technique was employed in this study to fulfil the research objectives. Amongst banks and non-bank financial institutions, the study highlighted private commercial banks as being the highest contributor to green financing, accounting for 78.12% of the total green financing in Bangladesh. In addition, the empirical findings revealed that the dimensions of green finance are related to the economic, social, and environmental aspects of the SDGs. Furthermore, empirical findings indicated that the dimensions of green finance—social, economic, and environmental—have a strong positive effect on the sustainability performance of banks. The study also discovered that approximately 95% of bankers identify green financing as an essential element in the short- and long-term development of banking strategies in Bangladesh. Consequently, this study adds to the body of knowledge on green finance development and the sustainability performance of banks and financial institutions in emerging economies such as Bangladesh. Therefore, major managerial policy implications are discussed.

Income structure, diversification strategy and owners’ benefit in cooperative financial institutions

2020 ◽  
Vol 16 (4) ◽  
pp. 481-500
Author(s):  
Hoang Van Cuong ◽  
Hiep Ngoc Luu ◽  
Loan Quynh Thi Nguyen ◽  
Vu Tuan Chu
Keyword(s):  
Financial Institutions ◽  
Credit Unions ◽  
Credit Union ◽  
Least Square ◽  
Policy Implications ◽  
Diversification Strategy ◽  
Income Diversification ◽  
Significant Drop ◽  
Content Type ◽  
Common Bond

PurposeThe purposes of this paper are twofold. First, it analyses the income structure in cooperative financial institutions and examines how traditional and non-traditional incomes are related. Second, it evaluates whether increasing diversification towards non-traditional incomes facilitates or hampers the benefits of financial cooperative owners.Design/methodology/approachData are collected from over 3,100 US credit unions over the period of 1994–2016. A number of modern econometric techniques are employed throughout the analysis, including the use of panel fixed effect, generalised method of moments (GMM) and two-stage least square (2SLS) methodologies.FindingsUsing US credit unions as the empirical setting, the empirical results reveal that the expansion of traditional income leads to a corresponding increase in income from non-traditional activities. However, an increasing reliance on non-traditional income causes a significant drop in interest margins. The authors also find that the extent to which income diversification affects owner benefit varies across credit union types and period of time. While income diversification negatively affects owners' benefits in single common bond credit unions, it has no significant influence on multiple common bond and community credit union owners' benefits. Third, diversification can be beneficial during crisis time, but can be detrimental to owner benefit during normal time.Originality/valueThis paper provides some of the first empirical investigations on the diversification strategy of cooperative financial institutions. Therefore, the results offer significant policy implications for policymakers and market participants on whether financial cooperatives should diversify or specialise.

EFFECT OF OWNERSHIP STRUCTURE ON PERFORMANCE OF FINANCIAL INSTITUTIONS

2017 ◽  
Vol 2 (7) ◽  
pp. 48
Author(s):  
Fredrick Kiprop Lagat ◽  
Dr. Joel Tenai
Keyword(s):  
Financial Institutions ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Target Population ◽  
Risk Tolerance ◽  
Policy Implications ◽  
Risk Monitoring ◽  
Industry Performance ◽  
Relationship Performance ◽  
Different Characteristics

Purpose: The purpose of the study was to examine the effect of ownership structure on performance of financial institutions.Methodology: The study used explanatory research design. The study used stratified random sampling to select respondents from target population comprising of managers of 46 commercial banks, 52 Micro Finance institutions (MFIs) and 200 SACCOs and a sample size of 239 respondents obtained. Data was collected using questionnaires. Descriptive statistics was presented, while inferential statistics was done using Pearson product moment correlation.Results: Risk monitoring [r = .206, p<.05] had a positive relationship performance of financial institutions. The more there was risk monitoring the higher the performance of financial institutions. A proper risk monitoring practices was used to ensure that risks are in line with financial institution's management goals in order to uncover mistakes at early stages. The risk monitoring had positive relationship on performance of financial institutions (P<0.05). The null hypothesis (HO4) stating that there is no significant effect of risk monitoring on the performance of financial institutions was rejectedUnique contribution to theory, practice and policy: The Central Bank of Kenya and Sacco’s Regulatory Authorities as regulators should make considerations due to the complexity of the financial sector nowadays makes it necessary before any policy analysis should rely upon different indicators and mainly upon those that reflect the whole reality of the industry performance and explicitly consider and carefully impose some regulations that consider different characteristics of ownership structure of financial institutions and the level of risk tolerance. The policy implications might be different across different types of financial institutions. Consider establish effective and efficient risk analysis mechanisms that will assist financial institutions ascertain their risk earlier.

Policy Changes and Bank Finance Availability for Small Enterprises in Tanzania

2006 ◽  
Vol 7 (1) ◽  
pp. 59-68 ◽  
Author(s):  
Tadeo Andrew Satta
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Urban Areas ◽  
Financial Sector ◽  
Policy Implications ◽  
Small Enterprises ◽  
Policy Changes ◽  
New Approach

This paper examines whether financial-sector policy changes introduced in Tanzania during the last decade have improved bank finance availability to small enterprises. Study findings reveal that, despite these changes, the level of bank finance to small enterprises is still insignificant. Results likewise indicate that, apart from bringing about limited competition in the provision of financial services, these changes have resulted in the concentration of most financial institutions in urban areas and in only a few regions/provinces. This also negatively affects bank finance availability to small enterprises. These findings have several policy implications for the growth of small enterprises in the country. Key among them is the need for a new approach to policy that will improve bank finance availability to small enterprises.

scholarly journals منهجية مئسسات الجتهاد الجماعي في السودان: دراسة تحليلية حول مجمع الفقه الإسلامي وهيئات الرقابة الشرعية المصرفية

2018 ◽  
Vol 2 (1) ◽  
pp. 181-217
Author(s):  
محمد شريف بشير الشريف ◽  
محمد يوسف خالد
Keyword(s):  
Special Reference ◽  
Financial Institutions ◽  
Islamic Law ◽  
Modern Technology ◽  
Policy Implications ◽  
Islamic Banks ◽  
Public Issues ◽  
The Public ◽  
Supervisory Boards

The main objective of this paper is to examine the role of collective Ijtihad institutions in Sudan with special reference to the Islamic Fiqh Academy of Sudan (IFA-Sudan) and the Shari'a supervisory boards in Islamic banks. The paper begins with a background of fatwa history in Sudan, focusing particularly on the experience of the Islamic Fiqh Academy (IFA-Sudan), which is a leading institution in the area of collective Ijtihad, through the powers granted to it as an official fatwa institution and discusses its contribution diverse to both society and the state. This paper presents an overview of selected models of Shari'a supervisory boards in Islamic banks and financial institutions including the High Shari'a Supervisory Council (HSSC) in Central Bank of Sudan. It provides also in-depth and strong understanding of Shari'a consultancy mechanisms in Islamic banks and their role in fatwas harmonization in financial matters. Through discussion emphases have given to the working approaches and procedures for the issuance of fatwa and its reinforcement mechanism from the perspective and practices of Islamic law in Sudan. This paper highlights some significant results on the importance of institutions of collective ijtihad, especially in public issues and emerging subjects. In conclusion, some policy implications have been mentioned on the development of fatwa management and use of modern technology to communicate between Shari'a supervisory boards in Islamic Banks and other financial institutions within and outside the country, and the interaction with the public, through answering their religious questions. ملخص البحث يتناول هذا البحث موضوع الجتهاد الجماعي من خلال دور مؤسسات الفتوى في السودان, ويعرض تجاربها في مجال الإفتاء, وإدارة شؤونه. و يركز البحث على تقويم تجربة مجمع الفقه الإسلامي بالسودان, واللذي يعتبر مؤسسة رائدة في مجال الاجتهاد الجماعي, من خلال الصلاحيات الممنوحة له, وما يعرض أمامه من القضايا الدينية في كافة شؤون الحياة, ومجالاتها. كما يعرض البحث نماذج مختارة من تجارب هيئات الرقابة الشرعية للمصارف والمؤسسات المالية الإسلامية بالسودان, و يبين أساليب عملها, والإجراءات المتبعة لديها في إصدار الفتوى الجماعية. ويحاول البحث أن يخلص إلى نتائج مهمة حول أهمية مؤسسات الإجتهاد الجماعي, وضرورة استمرارها في تقديم الفتوى الشرعية, خاصة في القضايا العامة, والمسائل المستجدة بما يشمل مسائل المعاملات والأسرة, والقضايا الطبية والعلمية, إضافة إلى ما يخص الدولة, و المؤسسات, وأفراد المجتمع من قضايا اجتماعية, وسياسية. وفي الختام يقدم البحث توصيات عامة بشأن تطوير هيئات الإفتاء من ناحية إدارتها, واستخدم وسائل التقنية الحديثة في التواصل مع هيئات الإفتاء داخل البلاد وخرجها, والتفاعل مع الجمهور, والإجابة عن أسئلته, واستفتاءاته الدينية.

scholarly journals Social and Financial Efficiency of Microfinance Institutions in Pakistan

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 389-403 ◽  
Author(s):  
Zahoor Khan ◽  
Jamalludin Sulaiman
Keyword(s):  
Financial Institutions ◽  
Social Role ◽  
Policy Implications ◽  
Financial Ratios ◽  
Microfinance Institutions ◽  
Social Efficiency ◽  
Community Members ◽  
Bottom Line ◽  
Financial Efficiency ◽  
For Profit

Financial efficiency and profitability of „for profit‟ institutions have been traditionally measured with the help of financial ratios [Hassan and Sanchez (2009)]. However, financial ratios are inappropriate to investigate the sources of inefficiency, estimate financial or social efficiency with multiple inputs and outputs, and to decompose the sources of efficiency or inefficiency into technical, technological and scale efficiencies or inefficiencies respectively [Hassan and Sanchez (2009)]. Microfinance Institutions (MFIs) are special institutions, which simultaneously consider their social role to uplift the marginalised community members along with their commercial objective to secure self-sustainability. In standard literature this phenomenon is coined MFIs as being „double bottom line” institutions. [Gutierrez-Nieto, Serrano-Cinca, and Mar Molinero (2007); Gutiérrez-Nieto, Serrano-Cinca, and Molinero (2007)]. This simultaneity differentiates MFIs from conventional financial institutions. The achievement of socioeconomic efficiency is indispensable for MFIs to operate independently and on a wider scale. Thus investigation of socioeconomic efficiency of MFIs is important for monitoring and optimal policy implications.

Mobile Payment Issues and Policy Implications

2009 ◽  
pp. 1699-1712
Author(s):  
Youngsun Kwon ◽  
Changi Nam
Keyword(s):  
Financial Institutions ◽  
Mobile Network ◽  
Policy Implications ◽  
Mobile Payment ◽  
Mobile Payments ◽  
Korean Economy ◽  
Banking Service ◽  
Payment Instruments ◽  
The Government ◽  
Mobile Network Operators

This chapter introduces three mobile payment plans that have been launched in Korea: mobile banking service, mobile prepaid electronic cash service and mobile phone bill service. Based on the recent experiences of the Korean economy, this chapter discusses the regulatory and monetary policy issues associated with mobile payments. Mobile payments are superior to existing means of payments because of their efficiency and convenience and mobile network operators (MNOs) are on the verge of turning into non-bank financial institutions in their nature. The government needs to facilitate the crossbreed between banks and MNOs to accelerate the development of efficient payment instruments rather than hindering innovation in banking industry.

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