scholarly journals Common Ownership Patterns in the European Banking Sector—The Impact of the Financial Crisis1

2021 ◽  
Author(s):  
Albert Banal-Estañol ◽  
Nuria Boot ◽  
Jo Seldeslachts
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Common Ownership ◽  
European Banking ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Capital Injections ◽  
Ownership Patterns

Abstract We provide a description of ownership patterns in the top 25 European banks for the period 2003–2015, where we especially focus on the global financial crisis. Investment managers, such as Blackrock, are dominant in terms of number of blockholdings in different banks, maintaining fairly stable “common ownership” networks throughout our sample. However, the financial crisis led to capital injections by governments in several banks in trouble, which in turn led to a jump in holdings by governments, which typically are “non-common owners” (i.e., they hold only shares in only one bank). This jump translated into these investors temporarily being the top investor with a large share, and non-common owners being the majority among large shareholders. A brief comparison with US banks uncovers large ownership differences between the European and US banking sectors. We briefly discuss what these ownership patterns might imply for competition, stability and performance in the banking industry.

scholarly journals The Impact of the Global Financial Crisis on China's Banking Sector

2017 ◽  
Vol 35 (1) ◽  
pp. 5-30
Author(s):  
Michiel Haasbroek ◽  
Jörn-Carsten Gottwald
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Chinese Economy ◽  
Initial Reaction ◽  
Top Down ◽  
Bottom Up ◽  
The Global Financial Crisis ◽  
The Impact

The banking sector had long been left at the fringes of China's reform policies. Major initiatives of the 1990 and early 2000s helped to balance the need for modernization and internationalization with the objective of preserving political control. When the Global Financial Crisis (GFC) erupted in 2007, it hit the Chinese economy but predominantly in its export sector and much less in its financial sector. Yet when exports collapsed and factories closed in the winter of 2008/2009, the Chinese leadership implemented an ambitious stimulus program and used its leverage over the financial sector to re-start economic growth. These factors – GFC and domestic stimulus – created a series of intended and unintended outcomes. Financial reform in China entered a new stage signalling a profound change in China's banking sector. These changes follow two sometimes contradictive, sometimes mutually reinforcing reform dynamics of top-down policies and bottom-up innovation. In this article we follow an institutional approach and discuss the intensified participation of China's big banks in the Go Out strategy, followed by a shift in the pattern of lending. One factor in this change is the rise of shadow banking and particularly an explosive growth in internet-based financial services. Thus, while the initial reaction to the GFC re-emphasized direct, top-down state involvement in the banking sector, the outcomes of the GFC, China's policies and business innovations have facilitated profound bottom-up changes.

scholarly journals The Impact of the Global Financial Crisis on the Management of Banking Risks

Equilibrium ◽  
2010 ◽  
Vol 5 (2) ◽  
pp. 33-45
Author(s):  
Alina Manta ◽  
Roxana Nanu
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Absorption Capacity ◽  
External Financing ◽  
Financial Soundness ◽  
Global Liquidity ◽  
The Global Financial Crisis ◽  
External Sector ◽  
The Impact

The international macroeconomic and financial environment has undergone major negative changes since the global financial crisis. The magnitude and intensity of the economic and financial crisis have been underestimated by authorities worldwide. The uncertainties surrounding future developments remain high. In Romania, the main challenges posed by the external sector refer to the worsening perception of risks, including contagion effects from the adverse regional developments, the contraction of external markets, the less readily available external financing and the replacement of global liquidity risk by solvency risk. In spite of this, the banking sector continued to report positive financial soundness indicators, displaying and noticeable financial results. Stress testing analyses indicate a solid absorption capacity of moderate shocks. On the other hand, we proposed ourselves to quantify the degree of correlation between the European and Romanian banking systems through the solvency indicator using the trend analysis.

scholarly journals The impact of the global financial crisis on the value relevance of earnings in the Polish banking sector

2017 ◽  
pp. 87-99
Author(s):  
Piotr Bolibok
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Value Relevance ◽  
The Global Financial Crisis ◽  
The Impact

Celem artykułu jest weryfikacja empiryczna wpływu globalnego kryzysu finansowego na znaczenie wyników finansowych dla wartości rynkowej podmiotów w polskim sektorze bankowym. Badaniem objęto wszystkie banki z siedzibą w Polsce notowane na Giełdzie Papierów Wartościowych w Warszawie w latach 2000–2015. Ramy metodyczne opracowania bazowały na modelu Ohlsona z wykorzystaniem analizy wielorakiej regresji liniowej. Uzyskane wyniki są spójne z rezultatami poprzednich badań w literaturze międzynarodowej i wskazują na spadek znaczenia wyników finansowych dla wartości rynkowej w następstwie kryzysu. Ten negatywny wpływ był najbardziej widoczny i istotny statystycznie w okresie następującym bezpośrednio po rozpoczęciu kryzysu (lata 2008–2012) oraz dla jednostkowych wyników finansowych, podczas gdy dla danych skonsolidowanych rezultaty nie były jednoznaczne. Powyższa rozbieżność sugeruje, że spadek znaczenia dla wartości rynkowej można w przeważającej mierze przypisać samej działalności bankowej, co przypuszczalnie odzwierciedlało silne wahania odpisów aktualizujących wartość należności kredytowych. Z kolei bardziej zdywersyfikowana struktura skonsolidowanych wyników finansowych najwyraźniej ograniczyła spadek ich znaczenia dla wartości rynkowej w oczach inwestorów.

scholarly journals The Impact of the Global Financial Crisis on Profitability of the Banking Industry: A Comparative Analysis

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 66 ◽  
Author(s):  
G. Erfani ◽  
Bijan Vasigh
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Seemingly Unrelated Regression ◽  
Islamic Banks ◽  
Islamic Tradition ◽  
Score Model ◽  
The Global Financial Crisis ◽  
The Impact

In this paper, the effects of the recent global financial crisis on efficiency and profitability of financial institutions were analyzed. In a comparative study, the impacts of the global financial crisis on the performance of Islamic and commercial banks were examined. The fundamental difference between Islamic and conventional banking is that Islamic banking is founded upon the ethical principles of Islamic tradition and law (Sharia). By utilizing a sample of eight Islamic banks and eleven commercial banks, the impact of the global financial crisis on efficiency and profitability of the banking sector was evaluated. This study covered the period from 2006 to 2013. The results of this research were obtained from the Altman Z-score model, ratio analysis, the data envelopment analysis (DEA) method, and the seemingly unrelated regression (SUR) model. The results show that during the study period, Islamic banks (IBs) managed to maintain their efficiency while most commercial banks (CBs) suffered a loss in their efficiency. Furthermore, this study found that the financial crisis did not have a significant impact on the profitability of Islamic banks.

scholarly journals Financial crisis and diversification strategies: the impact on bank risk and performance

2021 ◽  
Vol 10 (3) ◽  
pp. 249-261
Author(s):  
Duy Khanh Pham ◽  
Vu Minh Ngo ◽  
Huan Huu Nguyen ◽  
Toan Linh Vu Le
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Bank Risk ◽  
Data Set ◽  
Bank Managers ◽  
Diversification Strategies ◽  
Generalised Method Of Moments ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Impact

The paper investigates the impacts of diversification strategies on various indicators of bank risks and performance in emerging markets before, during, and after the global financial crisis. We use a data set of 44 commercial banks in Vietnam over the period 2002-2019 and the Generalised Method of Moments (GMM). The results suggest that income and funding diversification improve bank performance without increasing their risk-taking. During the financial crisis, assets and funding diversity help reduce risk, while income diversified banks bear more risk. The empirical findings show that different diversification dimensions affect bank risk and performance differently during crisis and non-crisis periods so bank managers need to adjust their strategy accordingly.

scholarly journals Examining the Impact of Global Financial Crisis in Bank Efficiency in Saudi Arabia

2017 ◽  
Vol 1 (4) ◽  
pp. 69
Author(s):  
Md. Golam Solaiman ◽  
Abdul Kadar ◽  
Md. Abul Kalam Azad ◽  
Peter Wanke
Keyword(s):  
Saudi Arabia ◽  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Sustainable Growth ◽  
Scale Efficiency ◽  
Bank Efficiency ◽  
Policy Makers ◽  
The Global Financial Crisis ◽  
The Impact

Aim: The global financial crisis in 2008 has obstructed almost every bank around the world. This study examines the impact of global financial crisis on bank efficiency in Saudi Arabia. Design / Research methods: This study examines the impact of global financial crisis in bank efficiency applying the data envelopment analysis (DEA) during 2006-2014. Eleven commercial banks were examined from Saudi banking sector which covers almost half of total banks of Saudi Arabia. Scale efficiency, technical efficiency and productivity of banks have been examined for assessing the impact of financial crisis overtime. Conclusions / findings: Results reveal that banks in Saudi Arabia are inefficient in terms of technical and scale efficiency. The results also reveal these banks are not immune to the global financial crisis. Though only one bank has kept their unit efficient positions during the study period, the impact of global crisis on bank efficiency is found visible among other banks. The robustness of this study is also tested.  Originality / value of the article: The importance of this study is twofold. First, examining bank efficiency with special attention to financial crisis. Second, Saudi Arabia needs sustainable growth to be ensured. Hence, examination of impact of financial crisis on bank efficiency of Saudi Arabia will surely help the policy makers for future planning.  Implications of the research: The findings of this study will assist the policy makers in Saudi Arabia for taking corrective measure in advance in case of such future financial crisis. Moreover, the results will be used by the managers of the respective banks for decision making and problem solving.

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