Ecuador banking sector is set for a comeback

2018 ◽  
Keyword(s):  
Private Sector ◽  
Central Bank ◽  
Banking Sector ◽  
Bank Lending ◽  
Foreign Banks ◽  
Economic Recovery ◽  
Content Type ◽  
Loan Growth ◽  
Double Digit

Subject Banking sector prospects. Significance Private sector banks in Ecuador enjoyed strong double-digit loan growth last year -- a reflection of the troubled economy’s gradual emergence from recession. That economic recovery, and the pragmatic willingness of President Lenin Moreno to work with the private sector, is generating optimism regarding the prospects of the country’s banking sector. Impacts Strong bank lending is key for economic recovery, allowing firms to increase investments and consumers to spend more. Taking the E-money system from the central bank shows Moreno’s pragmatism vis-a-vis the private sector. The planned sale of state-owned lender Banco del Pacifico could attract the interest of foreign banks.

Foreign banks’ faith in Mexico will endure

2017 ◽  
Keyword(s):  
Latin America ◽  
Commercial Bank ◽  
Banking Sector ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Content Type ◽  
International Banks ◽  
Loan Growth ◽  
Double Digit

Subject Mexican banking. Significance On March 10, Japan's Mizuho launched a commercial bank in Mexico, becoming the latest foreign bank to begin operations there. Mexico's banking sector has been one of the fastest-growing and most attractive in Latin America in recent years, with several new players entering and double-digit loan growth. Impacts Major international banks’ continued interest in Mexico shows confidence in an economy and a government under pressure. Banks that are willing to lend heavily will be important for the struggling Mexican economy. Mexican FDI will benefit from investments by foreign banks despite a predicted fall in FDI overall.

Brazil banks will stay cautious amid fragile recovery

2017 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Risk Averse ◽  
Public And Private ◽  
Content Type ◽  
Private Banks ◽  
Public And Private Sector

Subject Outlook for the banking sector. Significance The two-year recession has made Brazil’s public- and private-sector banks increasingly risk-averse in their lending to households and companies. This is likely to persist in 2017, owing to a very uncertain and fragile economic recovery, high unemployment and elevated levels of private-sector debt. Impacts Less-aggressive lending by national state banks will help public finances and give private banks a chance to increase market share. Spanish Santander will be the only foreign bank capable of competing in Brazil’s retail banking segment in the coming years. Other foreign banks lacking the necessary scale for profitable retail banking will focus on other niches.

NLD will push Myanmar banking reform in 2016

2015 ◽  
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Foreign Banks ◽  
Sector Reform ◽  
Banking Reform ◽  
Content Type ◽  
Investor Confidence ◽  
Banking Sector Development ◽  
Donor Support ◽  
International Donor

Subject Myanmar banking reform outlook. Significance Myanmar's central bank will issue additional banking licences to an undisclosed number of foreign banks in 2016, it announced on December 14. This is part of the wider effort to modernise and build the capacity of Myanmar's banking sector. Impacts Greater banking sector modernisation and liberalisation would aid domestic business sector growth. International donor support will be needed to help Myanmar's banking sector development. Banking sector reform requires the support of Myanmar's central bank personnel, and consumer and foreign investor confidence.

Brazil, Mexico banking results show diverging trends

2016 ◽  
Keyword(s):  
Positive Impact ◽  
Bank Credit ◽  
Economic Recovery ◽  
Sharp Drop ◽  
Content Type ◽  
Loan Demand ◽  
Severe Recession ◽  
Loan Growth ◽  
Credit Boom ◽  
Double Digit

Subject The banking outlook. Significance Brazil's severe recession has brought a halt to the bank credit boom while banks in Mexico are enjoying strong loan demand and double-digit lending growth. Impacts The sharp drop in lending in Brazil will slow economic recovery. Brazilian banks' profitability will also come under pressure from rising bad loans. Sustained high loan growth in Mexico should eventually have a positive impact on the modest pace of growth.

Brazil's bank lending will pick up after sharp decline

2018 ◽  
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Bank Lending ◽  
Single Digit ◽  
Content Type ◽  
Fiscal Constraints ◽  
Loan Demand ◽  
Low Interest Rates ◽  
Will Force ◽  
Loan Growth

Subject Outlook for the banking sector. Significance Following a deep two-year recession that started in 2015, Brazil’s financial system will see loan growth returning to positive territory. This will be slow and gradual, with lending set to expand at single-digit rates during the next few years. Banks saw improving profitability in 2017 due to a reduction in expenses related to bad loans, but this will come under pressure because of record-low interest rates. Impacts Rising bank lending will support economic recovery but will not be the same engine of GDP growth as in past years. Large state-owned banks will be somewhat less dominant due to capital and fiscal constraints. Lower interest rates and weak loan demand will force banks to focus on increased efficiency and fee-generating products and services.

Bank lending channel and banking sector efficiency: panel data of Egypt

2018 ◽  
Vol 13 (5) ◽  
pp. 1291-1310 ◽  
Author(s):  
Mohamed Aseel Shokr ◽  
Anwar Al-Gasaymeh
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Bank Lending ◽  
Bank Loan ◽  
Bank Lending Channel ◽  
Bank Efficiency ◽  
Content Type ◽  
Lending Channel

Purpose The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt. Design/methodology/approach This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt. Findings This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently. Research limitations/implications The limitation of the study is examining one country only. Practical implications The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply. Social implications It is important for the CBE and Egyptian banks because it highlights the importance of BLC. Originality/value It examines one channel of monetary policy and bank efficiency in Egypt.

scholarly journals THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 12 (24) ◽  
Author(s):  
Goran Mitrović ◽  
Živko Erceg
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Foreign Banks ◽  
Dayton Agreement ◽  
The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

scholarly journals Challenges of accountability in Nigeria: the role of deposit money bank

2020 ◽  
Vol 23 (2) ◽  
pp. 477-492 ◽  
Author(s):  
Abiola Ayopo Babajide ◽  
Adedoyin Isola Lawal ◽  
Lanre Olaolu Amodu ◽  
Abiola John Asaleye ◽  
Olabanji Olukayode Ewetan ◽  
...  
Keyword(s):  
Deposit Insurance ◽  
Banking Sector ◽  
Bank Lending ◽  
Annual Reports ◽  
Loan Loss ◽  
Bank Profitability ◽  
Content Type ◽  
Significance Level ◽  
Long Run ◽  
Corruption Index

Purpose The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The purpose of this study is to investigate the short- and long-run linkages between bank net interest income and deposit liabilities interacted with corruption, to establish the influence of corruption in deposit mobilisation drive of banks in Nigeria. Also, the study analysed the causal relationship between selected bank variables and fraud. Design/methodology/approach The study used quarterly data on selected variables from 1Q 1993 to 4Q 2017 sourced from Nigerian Deposit Insurance Corporation (NDIC) annual reports and Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. Deposit Money Bank various deposit liabilities are interacted with a corruption index and used as the independent variables, while bank earnings serve as the dependent variable. Error Correction Model (ECM) and Engel Granger approach to co-integration technique were used to analyse the data. Findings The findings reveal that various bank deposit liabilities interacted with corruption index has a negative effect on bank profitability in the long run, though only corrupt fixed deposit is statistically significant at the 5 per cent significance level. Bank total asset, total loan and advances and fraud have a significant effect on bank profitability at 1 and 10 per cent significance level. The findings also reveal that banks profit from corrupt fixed deposit and demand deposit in the short run. Social implications Text Originality/value The literature is awash with bank lending corruption and various institutional factors such as competition among banks, credit bureau and information sharing about borrowers, bank supervisory policies, loan loss provisioning, bank ownership structure and regulatory environment and anti-corruption measures. The aspect of deposit mobilisation and corruption has not been well researched in literature; this study, therefore, fills the gap in the literature by examining the extent deposit money banks contributed to corruption in Nigeria through their cutthroat deposit mobilisation drive.

What influences bank lending in Saudi Arabia?

2020 ◽  
Vol 27 (2) ◽  
pp. 125-155
Author(s):  
Ken Miyajima
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Balance Sheet ◽  
Oil Prices ◽  
Bank Lending ◽  
Policy Implications ◽  
Content Type ◽  
Balance Sheets ◽  
Level Data ◽  
Bank Balance Sheets

PurposeDeterminants of credit growth in Saudi Arabia are investigated.Design/methodology/approachA panel approach is applied to macroeconomic and bank-level data spanning 2000 ‐15.FindingsBank lending is supported by strong bank balance sheet conditions (high capital ratio, and growth of NPL provisioning and deposits), and higher growth of both oil prices and non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger institution. Consistent with the literature, lending by Islamic banks may be more responsive to economic activity. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector.Originality/valueThe paper is first to analyze in detail determinants of bank lending in Saudi Arabia applying a panel approach to bank level data, and draws critical policy implications.

Do banking sector concentration, banking sector development and equity market development influence firms’ financial flexibility? Evidence from Pakistan

2019 ◽  
Vol 9 (1) ◽  
pp. 115-129 ◽  
Author(s):  
Yasin Mahmood ◽  
Maqsood Ahmad ◽  
Faisal Rizwan ◽  
Abdul Rashid
Keyword(s):  
Banking Sector ◽  
Developing Economies ◽  
Bank Lending ◽  
Equity Market ◽  
Debt Financing ◽  
Market Development ◽  
Financial Flexibility ◽  
Content Type ◽  
Banking Sector Development ◽  
The Impact

Purpose The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF). Design/methodology/approach The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development 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 and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt financing. Practical implications The banking sector is an important provider of capital to business entities. A concentrated banking system discourages the provision of capital to firms; hence regulators have to take appropriate measures to resolve the problem of a reduced supply of capital. Banking sector development facilitates the provision of capital; further development may reduce bank lending rates to firms. Equity market development positively affects FF; hence, firm managers can use equity financing to resume FF. By following pecking order theory, managers use internal sources to finance value-maximizing investment projects, debt and issue shares as the last choice to get financing. When borrowing capacity is depleted, managers can obtain further funds by issuing stocks. Originality/value FF is an emergent area of research in advanced countries, while in developing economies, it is in the initial stages. Little work is available in this area to find the impact of banking sector concentration, banking sector development and equity market development, therefore, this study fills this gap in the existing literature.

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