Restructuring of Spain’s banking sector will continue

2019 ◽  
Keyword(s):  
Institutional Investors ◽  
Financial Services ◽  
Cost Reduction ◽  
Banking Sector ◽  
Content Type ◽  
Ongoing Process

Subject Spain's banking sector. Significance Spanish banks have recovered strongly from the 2008-09 financial crash, but pressure on profits, cost reduction demands and new competition will ensure that the ongoing process of restructuring will persist. Impacts Low profitability will push banks towards higher-margin products and financial services attracting fee and commission income. Low bank valuations offer opportunities for institutional investors to increase their holdings and for stronger banks to make acquisitions. A renewal of conflict in Catalonia could force more banks and businesses to move their headquarters to other Spanish cities.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana

2019 ◽  
Vol 37 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Kong YuSheng ◽  
Masud Ibrahim
Keyword(s):  
Customer Satisfaction ◽  
Service Delivery ◽  
Financial Services ◽  
Structural Equation ◽  
Banking Sector ◽  
Innovation Management ◽  
Service Innovation ◽  
Initial Study ◽  
Equation Modeling ◽  
Content Type

Purpose The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana. Design/methodology/approach Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling. Findings The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty. Research limitations/implications This study offers theoretical support for the adoption of innovative techniques in service provision and delivery. Originality/value This paper provides an initial study into innovation management in financial services context in an emerging economy.

Municipal-owned community bank: capital raising dilemma

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Tobias Aloisi Swai
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Order Theory ◽  
Individual Investors ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Content Type ◽  
Community Bank

Learning outcomes The case introduces student to basic understanding of banking sector in Tanzania as well as the strategies and struggle to raise capital through shareholders’ funds. Application of Banking theory and Pecking order theory is evidenced from the case. The case outlines why the bank struggled to raise capital and what triggers the capital raising strategies. It also give students an opportunity to think about applicable theories of capital structure and bank capital, and strategies the bank could use to rescue its capital crunch in the future. Case overview/synopsis The case provides details of how the Capital Community Bank (CCB) raised its capital through strategic financial engineering which enabled it to raise the minimum regulatory capital required to be licensed as a financial institution unit, to a regional financial institution, to a fully fledged commercial bank. The bank started with a paid up capital of TZS 472.3m in 2002, involving four Local Government Authorities and individual investors. Capital raised to TZS 31.3bn in 2014 and down to TZS 20.6bn at the end of 2016. The minimum regulatory capital required is TZS 15bn, while paid up capital was 16.9bn. With the change of the management team in 2017, the bank is looking for avenues to raise further capital to meet the regulatory limits and continue to survive as a commercial bank, given dramatic changes in the banking sector in Tanzania. Complexity academic level The case is suitable for third year students in Bachelor of Commerce/Economics specializing in banking/financial services. It also suits postgraduate/master's students seeking a Postgraduate Diploma or Master of Business Administration in financial institutions/banking course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

scholarly journals Financial development, openness in financial services trade and economic growth

2019 ◽  
Vol 3 (2) ◽  
pp. 42-65 ◽  
Author(s):  
Rabia Khatun ◽  
Jagadish Prasad Bist
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
Financial Services ◽  
Banking Sector ◽  
Market Development ◽  
Services Trade ◽  
Content Type ◽  
Stock Market Development ◽  
Insurance Sector

Purpose The purpose of this paper is to examine the relationship between financial development, openness in financial services trade and economic growth in BRICS countries for the period 1990–2012. Design/methodology/approach An index for financial development has been constructed using principal component analysis technique by including banking sector development, stock market development, bond market development and insurance sector development. For the robustness of the result, the long-run cointegrating relationship amongst the variables has been analyzed. Findings Overall financial development has a positive and significant impact on economic growth. To take the full advantage of openness in financial services trade, countries need to put more emphasis on the development of their stock markets, bond markets and the insurance sector. The result shows that openness in financial services trade has a positive impact on economic growth when the stock market, bond market and insurance sector are included in the system. Research limitations/implications The policy implication of the findings is that policymakers should focus more on developing all four areas of finance to get the full benefit of the financial system on the process of economic growth. Originality/value The authors have constructed the better indicators of financial development in the case of BRICS economies. Most of the studies in BRICS economies have measured the development of the financial sector as either banking sector development or stock market development. However, the present study includes all four areas of finance (banking sector development, stock market development, insurance sector development and bond market development) into account.

An evaluation of customers' perception and usage of rural community banks (RCBs) in Ghana

2008 ◽  
Vol 3 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Nana Owusu‐Frimpong
Keyword(s):  
Rural Community ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Service Providers ◽  
Eastern Region ◽  
Community Banks ◽  
Content Type ◽  
Infrastructural Development ◽  
High Street

PurposeTo ascertain customers' usage level and perceptions of the image of rural community banks (RCBs) in Ghana. This research examines whether women and men differ in their levels of satisfaction and expectation about the banks' services. It also assesses the contribution of RCBs towards infrastructural development in the rural areas.Design/methodology/approachBoth desk and primary research methods were employed. Face‐to‐face interviews took place in 15 bank branches in the eastern region of Ghana. Over 170 respondents consisting of 105 males and 65 females co‐operated for this study. Analyses are presented in a statistical format using mean score and t‐test.FindingsRCBs are perceived as fairly active in rural infrastructural development, and have collaborated with NGOs to help identify, mobilise and educate rural groups in the usage and benefits of banking services. Men and women are gradually cultivating the banking culture. Both genders perceive the quality of financial advice, provision of information and service delivery as areas that need significant improvement. There are no significant differences between both genders in their perceptions and expectation of the banks services.Research limitations/implicationsThe sample size was limited to only one part of Ghana and may not be entirely representative.Practical implicationsThis study provides a meaningful insight into consumer behaviour in rural banking sector and useful platform for future studies in marketing of financial services in a developing country context.Originality/valueThe study is unique in that it looks at a rural banking service provision in a sub‐Sahara African country, a setting that markedly differs from the traditional high street banks sectors in the developed world. The results will enable financial service providers to consider the changing needs and wants of RCBs customers.

Spatial analysis of the distribution and determinants of bank branch presence in Ghana

2015 ◽  
Vol 33 (3) ◽  
pp. 201-222 ◽  
Author(s):  
David Ansong ◽  
Gina Chowa ◽  
Bernice Korkor Adjabeng
Keyword(s):  
Spatial Distribution ◽  
Financial Services ◽  
Banking Sector ◽  
Cost Effective ◽  
Bank Branch ◽  
Content Type ◽  
Bank Branches ◽  
Rural And Urban ◽  
Spatial Analyst ◽  
Branch Banking

Purpose – Expanding access to financial services for the 70 percent of Ghanaians who are unbanked is critical. Bank branches have been the primary channel for financial service delivery, but this may be changing because of technological innovations. Analysts believe branch-based banking still has a role in promoting financial inclusion. The purpose of this paper is to examine the pattern of bank branch presence across rural and urban Ghana; the disparities in the spatial distribution of domestic, foreign, and rural and community bank branches; and the district level characteristics associated with the pattern of spatial distribution of bank branches. Design/methodology/approach – The study uses spatial analyst tools, geographically weighted Poisson regression, and data from Ghana’s banking sector to show the inequality in availability of branch-based services and to highlight the district and regional level differences in the determinants of branch allocation. Findings – The study finds evidence of inequality in access to financial services. Physical bank branches are disproportionately more accessible in the urban south compared to the rural north. The study also finds that population size, percentage of urban residents, workforce size, and literacy level are associated with bank allocation but the results vary by district. Practical implications – Branch banking needs modernization to continue to bring financial services in closer proximity. Development of physical and electronic infrastructure could attract financial institutions to serve deprived areas with significant concentration of unbanked populations. Originality/value – Findings of the study point to the need for banks to re-envision branch banking technology to make branch banking more interactive. Banks need to find ways to fuse transferable elements of mobile phone banking into branch-based banking, not just to attract younger technology-savvy customers but also to help make operations more attractive, efficient, and cost effective.

Digital transformation of the banking system in the context of sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imeda A. Tsindeliani ◽  
Maxim M. Proshunin ◽  
Tatyana D. Sadovskaya ◽  
Zhanna G. Popkova ◽  
Mariam A. Davydova ◽  
...  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Legal Regulation ◽  
State Regulation ◽  
Securities Market ◽  
Legal Analysis ◽  
Content Type ◽  
Regulatory Cooperation ◽  
Legal Guidelines

Purpose The purpose of this paper is to study the current state of the Russian banking system in the context of digital economy development, to establish and identify the benchmarks and needs of legal regulation, to study the potential possibilities of digitalization of relations in the banking sector in the mechanism of implementing prudential rules. Design/methodology/approach Using the method of political and legal analysis used in this study, the legal guidelines for the digitalization of the banking sector and the financial services market have been determined, which in the Russian legal system are strategic planning documents. Findings International research in the field of banking indicates that digitalization and globalization of the economy stimulate the processes of international regulatory cooperation and harmonization of legislation, the use of new approaches in the development and adoption of regulations in the financial market. The growth of digitalization of relations in the banking sector will contribute to the effective implementation of prudential rules, including those related to the need to protect public interests. Originality/value The study revealed a number of issues related to the digitalization of the activities of credit institutions that are professional participants in the securities market and the central bank as a financial mega-regulator, requiring a legal solution. Measures aimed at improving the current legislation and procedures of state regulation and supervision are proposed.

Determinants of older consumers’ interest in home equity conversion products

2019 ◽  
Vol 37 (5) ◽  
pp. 1275-1295 ◽  
Author(s):  
Simona Cosma ◽  
Stefano Cosma ◽  
Alessandro M. Peluso
Keyword(s):  
Locus Of Control ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Financial Education ◽  
Probit Regression ◽  
Home Equity ◽  
Content Type ◽  
Internal Locus Of Control ◽  
Credit Culture

Purpose The purpose of this paper is to highlight opportunities for the banking sector arising from the population’s aging and the expected reduction in pension incomes. Home equity conversion (HEC) instruments are a potentially useful way of restoring households’ finances and satisfying their needs, with implications for the demand for financial services. Design/methodology/approach By using an ordered probit regression model, the paper analyzes data obtained from a survey of 2,000 Italian households. Findings The main finding of this paper is that individuals with greater familiarity with consumer credit, a cognitive and decision-making approach favorable to use of credit, and an internal locus of control show greater interest in various forms of equity conversion. Originality/value This paper extends the analysis of the determinants of individuals’ interest in HEC products. It focuses more closely than the existing literature on households’ credit behaviors, attitudes toward credit and locus of control. The paper helps identify the potential targets of marketing campaigns and commercial proposals, and highlights the levers that the banks can focus on in communicating with customers and future prospects. Moreover, this paper suggests that there is a need to develop greater awareness on the part of people who could be interested in these products. Therefore, appropriate financial education projects should be implemented to develop a better “credit” culture, with due appreciation of the usefulness of credit as a means of supporting household budgets.

scholarly journals Globalization and bank efficiency nexus: empirical evidence from the Malaysian banking sector

2017 ◽  
Vol 24 (5) ◽  
pp. 1269-1290 ◽  
Author(s):  
Fadzlan Sufian ◽  
Fakarudin Kamarudin ◽  
Annuar Md. Nassir
Keyword(s):  
Empirical Evidence ◽  
Financial Services ◽  
Banking Sector ◽  
Economic Globalization ◽  
Bank Efficiency ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Cultural Proximity ◽  
Political Globalization ◽  
The Impact

Purpose The purpose of this paper is to provide a new empirical evidence on the impact of economic globalization on the efficiency of the banking sector. The paper also investigates to what extent the internal (i.e. bank specific characteristics) and external (i.e. macroeconomic conditions) factors influence the efficiency of banks while controlling for the impact of the different dimensions of globalization. Design/methodology/approach The analysis is confined into two stages. In the first stage, the authors employ the bias-corrected data envelopment analysis method to compute the efficiency of individual banks during the period 1999-2012. The authors then use bootstrap regressions to examine the impact of economic globalization on bank efficiency, while controlling for the potential impacts of contextual variables. Findings The empirical findings indicate that the impacts of personal contacts, information flows, and cultural proximity seem to work in favor of Malaysian banks’ efficiency. A plausible reason could be due to the fact that capital account liberalization is usually accompanied by liberalization of the financial services sector, resulting in a greater competition and subsequently eroding monopolistic profits. The empirical findings also bring forth the importance of and political globalization in determining the efficiency of banks operating in the Malaysian banking sector. Originality/value The present study aims to provide for the first time empirical evidence on the performance of the banking sector and to establish new empirical evidence on the impact of globalization. The empirical evidence on the impact of globalization on the banking sector is completely missing from the literature.

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