scholarly journals How the institutional environment affects the banking sector: evidence from BRICS

2018 ◽  
Vol 1141 ◽  
pp. 012021
Author(s):  
N Larionova ◽  
J Varlamova ◽  
D Rakhmatullina ◽  
L Zulfakarova
Keyword(s):  
Banking Sector ◽  
Institutional Environment

scholarly journals Relations between institutional environment and level of social disclosure in the banking sector: evidence from Latin America

2020 ◽  
Vol 11 (3) ◽  
pp. 158-184
Author(s):  
Alan Bandeira Pinheiro ◽  
Ana Julia Batistella ◽  
Ana Carla Cavalcante das Chagas ◽  
Wendy Witt Haddad Carraro
Keyword(s):  
Latin America ◽  
Banking Sector ◽  
Institutional Environment ◽  
Social Disclosure

scholarly journals A structural approach to financial stability: On the beneficial role of regulatory governance

2013 ◽  
Vol 2 (1) ◽  
pp. 7-26 ◽  
Author(s):  
Benjamin Mohr ◽  
Helmut Wagner
Keyword(s):  
Latent Variables ◽  
Financial Stability ◽  
Structural Equation ◽  
Banking Sector ◽  
Institutional Environment ◽  
Equation Modeling ◽  
Regulatory Governance ◽  
Economic Statistics ◽  
Financial Soundness

This paper examines whether the governance of regulatory agencies – regulatory governance – is positively related to financial sector soundness. We model regulatory governance and financial stability as latent variables, using a structural equation modeling approach. We include a broad range of variables potentially relevant to financial stability, employing aggregate regulatory, banking and financial, macroeconomic and institutional environment data for a sample of 55 countries over a period from 2001 to 2005. Given the growing importance of macro-prudential analysis, we use the IMF’s financial soundness indicators, a relatively new body of economic statistics which focuses on the banking sector as a whole. Our empirical evidence indicates that regulatory governance has a beneficial influence on financial stability. Thus, our findings support the view that the improvement of regulatory governance arrangements should be a building block of financial reform

Credit and Financial Capital in Roman Egypt

2020 ◽  
pp. 437-460
Author(s):  
Merav Haklai
Keyword(s):  
Interest Rate ◽  
Banking Sector ◽  
Institutional Environment ◽  
Financial Capital ◽  
Gradual Change ◽  
Financial Conditions ◽  
Roman Egypt ◽  
Legal Structures ◽  
Structured Credit ◽  
Set Up

Roman Egypt sets an example of a monetized society in which credit was widely used in both monetary and in-kind transactions. During the first two and a half centuries of Roman rule, interactions between the three main legal systems in Egypt—Demotic, Greek, and Roman—gradually created a coherent institutional environment that structured credit and financial capital. In this environment, Greek law gained the upper hand as the most frequently used system of law for conducting economic interactions. The administrative, fiscal, and financial conditions set up by Roman governance, and above all the new and reduced maximum Roman legal interest rate, affected the development of credit-related mechanisms. Legal structures that enabled the creation of credit went through a slow and gradual change, in which available legal formats were adjusted to accommodate for somewhat different activities. Παραθήκη‎ formulae, originally used for making deposits, increasingly were being used in de facto loans, thereby casting new content in an existing formula. While this practice is commonly attested in transactions between private individuals, using παραθήκη‎ agreements seems not to have served as a common financial tool for Roman Egypt’s banking sector.

Bank Runs and Moral Hazard

2019 ◽  
pp. 684-706
Author(s):  
Deniz Anginer ◽  
Asli Demirgüç-Kunt
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Recent Literature ◽  
Institutional Environment ◽  
Bank Runs ◽  
Costs And Benefits ◽  
Economic Costs ◽  
The Impact ◽  
Excessive Risk

Deposit insurance is a widely adopted policy to promote financial stability in the banking sector. Deposit insurance helps ensure depositor confidence in the financial system and prevents contagious bank runs, but it also comes with an unintended consequence of encouraging banks to take on excessive risk. In this chapter, we begin with a review of the economic costs and benefits associated with deposit insurance. Drawing on the recent literature, we then review and discuss optimal deposit insurance design and risk-based pricing of insurance premiums. Finally, we discuss the impact of the larger institutional environment on how well deposit insurance schemes work in practice.

scholarly journals THEORETICAL APPROACHES TO THE CLASSIFICATION AND SYSTEMATIZATION OF BANKS BY BUSINESS MODELS

2021 ◽  
Vol 2 (37) ◽  
pp. 24-36
Author(s):  
V. Rudevska ◽  
N. Shvetz ◽  
O. Storozhenko
Keyword(s):  
Economic Growth ◽  
Business Model ◽  
Information Technologies ◽  
Business Models ◽  
Banking Sector ◽  
Institutional Environment ◽  
Historical Background ◽  
Theoretical Approaches ◽  
The Impact

Abstract Banking institutions are subject to change in the business model depending on external conditions, which may be due to changes in market needs and changes in the competitive environment or regulation. Depending on the business model of banks, they may react differently to the influence of external and internal factors. This situation in the future may lead to changes in the business architecture of the banking sector and  affect the country's economic growth. The article considers the approaches to the classification of banks by business models, a critical analysis of existing approaches to the classification of banks in terms of business models. A study of the systematization and classification of banks by business models found that existing approaches to classification are quite fragmentary and insufficiently expanded. The author's systematization and generalization of existing in world practice theoretical approaches to the classification of types of business models of banks, allowed to justify the author's classification of banks by their business models, which includes new classification features, including historical background and development of the institutional environment. economic processes in the state and the vector of economic growth, introduction of innovations and information technologies, range of banking products and services, development of branch network. The approach proposed in the article, in contrast to the existing ones, is comprehensive and will help the bank to choose the most optimal and effective business model that will fully take into account the impact of modern business conditions. The expanded classification that could be used at the local and international levels will harmonize the general approach, which is constantly being harmonized and regularly updated, taking into account the changing landscape of the banking sector. Keywords: bank, business model of the bank, classification of banks, cluster of banks, criteria for classification of business models. JEL Classification: G210,G20 Formulas: 0; fig.: 2; tabl.:1 ; bibl.: 16.

scholarly journals Organizational and financial mechanism for ensuring financial and economic security of the banking-system

2021 ◽  
Vol 2021 (2) ◽  
pp. 248-255
Author(s):  
Natalia Riazanova ◽  
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
Mortgage Lending ◽  
Economic Security ◽  
Bank Loans ◽  
Resource Base ◽  
Banking Secrecy ◽  
Financial Mechanism

an organizational and financial mechanism for ensuring the financial and economic security of a commercial bank is proposed, which, in real time and in situations that cannot be controlled using traditional methods, will minimize potential risks and change the internal institutional environment, positively affecting the financial and economic security of the country's banking system. It is shown that economic growth as a factor of national security is supported by the effective functioning of the banking system and the priority of long-term bank loans provided in the form of investments, which makes it possible to determine the relationship between the growth of the country's economy and the level of financial and economic security of the banking system. The main approaches to ensuring the financial and economic security of the banking system are considered, which include the structure of the primary interests of a commercial bank and indicators of the level of financial and economic security of the banking sector of Ukraine in order to ensure economic stabilization and strengthen the economic potential of the bank. It was noted that an adequate and fundamental marketing strategy will help to promote the growth of the bank's profitability, attract additional customers, form a resource base and reduce risk in banking. Mortgage lending is considered as the most effective tool for attracting funds from the population to the investment sector and meeting their needs for housing. A distinctive feature of the presented organizational and financial mechanism is the use of strategic management methods to form economic resources, improve the image and level of security of information systems, organize effective management of the bank's personnel, which will create conditions for ensuring the proper level of protection against negative factors and threats and increasing the competitiveness of the bank due to increasing the efficiency of the provision of banking services, preserving banking secrecy and the client base, creating new banking products

The role of macroeconomic and institutional factors in creating corporate financial flexibility

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasin Mahmood ◽  
Abdul Rashid ◽  
Faisal Rizwan ◽  
Maqsood Ahmad
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Institutional Environment ◽  
Equity Market ◽  
Institutional Factors ◽  
Financial Flexibility ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies. Design/methodology/approach The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across firms. Inflation, institutional quality and banking sector development negatively affect FF, while equity market development has a significant positive impact. Gross domestic product growth was found to be an insignificant predictor of FF. Practical implications This study has practical implications for corporate finance managers, regulators and investors, who must consider the significant factors of this study when making economic decisions. Finance managers can thus make appropriate decisions regarding capital structure and FF. Regulators of the banking sector can take appropriate measures to enhance competition and increase the development of the banking sector. Further, regulators of the equity market can enhance the development of the market to enhance the supply of capital. Originality/value This study adds to the literature showing that not only firm-specific factors affect corporate FF, but country-specific macroeconomic and institutional factors also have a significant effect. It also adds to the literature in the area of corporate FF; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

scholarly journals Is Thai Banking Ready for AEC Financial Liberalization in 2020?

2016 ◽  
Vol 12 (5) ◽  
pp. 226
Author(s):  
Pornpen Vora-Sittha
Keyword(s):  
Banking Sector ◽  
Financial Liberalization ◽  
Institutional Environment ◽  
Banking System ◽  
Business Environment ◽  
Study Data ◽  
Regional Competition ◽  
World Economic ◽  
New Phase ◽  
Financial Development Index

<p>Thai banking’s readiness before approaching a new phase of regional economic integration under AEC’s Financial Liberalization in 2020 is evaluated through the applications of Financial Development Index (FDI), developed by World Economic Forum (WEF). The paper assesses bank’s readiness for regional competition by using readiness index constructed in this study. Data limitation allows this article to cover only six countries in ASEAN, namely, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The analysis includes four pillars and one sub-pillar out of 7 pillars representing the whole financial system. Results show that Singapore’s banking system is the readiest country for regional competition, followed by Malaysia, Thailand and Philippines. The banking sector in Thailand is not quite ready for AEC financial liberalization. The pillars that weaken Thai banking system are the “Institutional environment” and the “Business environment”. The country needs to improve these two pillars to foster its competency for AEC challenges.</p>

scholarly journals RETHINKING THE ROLE OF STATE IN ADDRESSING FINANCIAL DIFFICULTIES OF THE BANKING SECTORS IN EASTERN EUROPE

2020 ◽  
Vol 9 (20) ◽  
Author(s):  
Svetlana Popović ◽  
Velimir Lukić
Keyword(s):  
Eastern Europe ◽  
Financial Stability ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
The State ◽  
Positive Role ◽  
Nonperforming Loans ◽  
Role Of The State

Financial problems in the banking sector have historically entailed significant government intervention and the allocation of significant funds for its rehabilitation. The recent financial crisis, manifested in Europe primarily as a banking crisis, reaffirmed the unwritten call of the state to intervene extensively to preserve economic and financial stability, but only for a set of old and developed EU Member States. The paper therefore analyzes the reformed role of the state in solving acute problems in transformed banking systems in Eastern Europe in the light of the post-crisis escalation of the volume of nonperforming loans. The focus of the role of the state was shifted from direct fiscal expenditures to raising the quality of the institutional environment and the rule of law, which enabled an impressive reduction in the rates of nonperforming loans. Foreign ownership in the banking sector has played a positive role because the financial backing of foreign subsidiaries has reduced potential fiscal costs on the one hand and on the other hand it contributed to maintaining confidence in the banking system.

Sign in / Sign up

Export Citation Format

Share Document