scholarly journals Banks Belonging to the Erste Group and their Sensitivity to the Confidence Crisis on the Interbank Market

2015 ◽  
Vol 63 (6) ◽  
pp. 1953-1960
Author(s):  
Pavla Klepková Vodová
Keyword(s):  
Scenario Analysis ◽  
Commercial Banks ◽  
Interbank Market ◽  
Average Sensitivity ◽  
Liquid Asset ◽  
Banks And Banking

The aim of this paper is to measure the sensitivity of commercial banks from the Erste Group to the confidence crisis on the interbank market and to compare their sensitivity with average sensitivity of banks in particular countries. We have used the methodology of scenario analysis for the liquid asset ratio. All banks belonging to the Erste Group should be able to withstand the confidence crisis on the interbank market. The group of the most vulnerable banks consists from Erste bank Hungary and Banca Comerciala Romana from Romania. In some cases, banks from the Erste Group are more sensitive; while in other cases are banks belonging to the Erste Group less vulnerable than corresponding banking sectors. Except of banks from Hungary, Romania and Slovakia, subsidiary banks are less sensitive to the confidence crisis than the parent bank. Banks (and banking sectors) who are net borrowers on the interbank market are much more sensitive to the confidence crisis on this market.

scholarly journals Reluctant Europeans? British and French Commercial Banks and the Common Market in Banking (1977–1992)

2020 ◽  
Vol 21 (3) ◽  
pp. 768-798 ◽  
Author(s):  
ALEXIS DRACH
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Financial Integration ◽  
Common Market ◽  
European Banking ◽  
The Common ◽  
Banks And Banking ◽  
European Financial Integration

More than ten years after the financial crisis, the challenges of European banking and of the eurozone highlight that the existence of a European common market in banking is at best partial. Examining how British and French commercial banks and banking associations responded to the plans for a European common market in banking between 1977 and 1992, this article contributes to explaining this partial character, and highlights that this project was primarily political. This challenges the widely held view that large companies tended to push for more integration. This article shows that until the mid-1980s, the banking sector was not necessarily calling for European financial integration in the form of a common market in banking for at least three reasons: they doubted the usefulness of such a move, they feared an increase in regulation, and they focused more on domestic or global matters than on European ones.

scholarly journals Determinants which Affect Liquid Asset Ratio of Czech and Slovak Commercial Banks

2013 ◽  
Vol 4 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Pavla Vodová
Keyword(s):  
Commercial Banks ◽  
Slovak Republic ◽  
Capital Adequacy ◽  
Macroeconomic Factors ◽  
Liquid Asset ◽  
Panel Data Regression ◽  
Data Regression ◽  
Specific Factors ◽  
Credit Portfolio

The aim of this paper is to find out determinants which affect liquid asset ratio of Czech and Slovak commercial banks. The data cover the period from 2001 to 2010. We consider four bank specific factors and nine macroeconomic factors. Results of panel data regression analysis showed that although Czech Republic and Slovak Republic have a lot in common, different factors determined banks´ liquid assets in individual countries. The liquid asset ratio of Czech banks increases with increase of capital adequacy, with depreciation of Czech koruna and with worsening quality of credit portfolio. Liquidity of Slovak banks decreases with size of the bank, with higher capital adequacy, higher bank liquidity and during periods of financial crisis. Liquidity of Slovak banks is also positively related to economic cycle.

scholarly journals The Stability of Interbank Market Network: A Perspective on Contagion and Risk Sharing

2016 ◽  
Vol 2016 ◽  
pp. 1-8 ◽  
Author(s):  
Chi Xie ◽  
Yang Liu ◽  
Gang-Jin Wang ◽  
Yan Xu
Keyword(s):  
Commercial Bank ◽  
Systemic Risk ◽  
Commercial Banks ◽  
Risk Sharing ◽  
Main Channel ◽  
Risk Exposure ◽  
Interbank Market ◽  
Bank Of China ◽  
The Stability ◽  
Market Networks

As an important part of the financial system, interbank market provides banks with liquidity and credit lending and also is the main channel for risk contagion. In this paper, we test the existence of systematic risk contagion within the Chinese interbank market. By building the networks of the Chinese interbank market for each year and using the measure of mutual information, we quantitatively detect the changes of interbank market networks and observe that the correlations between banks become increasingly tighter in recent years. With the bilateral risk exposure among Chinese listed commercial banks, we find that the possibility of systemic risk contagion in Chinese interbank market is fairly small. But of great concern on each individual bank, the matter is different. Our simulation shows that the failures of three special banks (i.e., Agricultural Bank of China and Bank of China and Industrial and Commercial Bank of China) most likely lead to systemic risk contagion. Furthermore, we test the antirisk ability of the Chinese interbank market from the perspective of risk sharing and discover that the interbank market is stable when the loss scale is lower than forty percent of banks’ total core capital.

scholarly journals Market Discipline in the Interbank Market: Evidence from an Emerging Country

2021 ◽  
Vol 18 ◽  
pp. 1028-1037
Author(s):  
Dung Viet Tran ◽  
Chi Huu Lu
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
Market Discipline ◽  
Interbank Market ◽  
Empirical Results ◽  
Emerging Country ◽  
The Global Financial Crisis ◽  
Asset Quality

This study provides one of the first evidence of the market discipline in the interbank market of the Vietnamese banking system after the global financial crisis. Based on the data of 19 commercial banks listed in Vietnam from 2010 to 2019, our empirical results suggest a weak interbank discipline in the Vietnamese banking system. Banks seem to be interested in the liquidity ratio of their fellows, especially for smaller banks, whereas they pay more attention to asset quality in the case of larger banks. We believe our study is of interest to regulators and policymakers in Vietnam

scholarly journals Liquidity Risk Sensitivity of Czech Commercial Banks

2014 ◽  
Vol 62 (2) ◽  
pp. 427-436
Author(s):  
Pavla Vodová
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Balance Sheet ◽  
Liquidity Risk ◽  
Negative Influence ◽  
Annual Reports ◽  
Risk Sensitivity ◽  
Interbank Market ◽  
Liquidity Shocks ◽  
The Impact

The recent financial crisis has shown that a liquidity risk plays an important role in the current developed financial system. One of the efficient tools of liquidity risk management is stress testing which can show banks their potential vulnerability to liquidity shocks. The aim of this paper is therefore to measure the liquidity risk sensitivity of Czech commercial banks and to find out the most severe scenario and the most vulnerable bank. Our sample included significant part of the Czech banking sector; we used unconsolidated balance sheet data over the period from 2000 to 2011 which were obtained from annual reports of Czech banks. We have evaluated liquidity risk of each bank in the sample via six different liquidity ratios. Then we stressed these baseline values in three stress scenarios: run on a bank (simulated by a 20% withdrawal of deposits), confidence crisis on the interbank market (simulated by a withdrawal of 20% of interbank deposits) and use of committed loans by counterparties (simulated by a 5% increase of loans provided to nonbank clients). We measured the impact of all scenarios by relative change of liquidity ratios. The impact of modelled liquidity shocks differs among scenarios. The most serious liquidity problems would be caused by the first scenario – run on a bank. The negative influence of third scenario (use of committed loans) is less severe. The confidence crisis on the interbank market would not affect bank liquidity at all. The results also show that the severity of the impact of all scenarios worsens in periods of financial distress. We have also found that large and medium sized banks are most vulnerable to liquidity shocks, mainly to massive deposit withdrawals.

scholarly journals Price Elasticity of Sectoral Lending in Nepal

2019 ◽  
Vol 31 (2) ◽  
pp. 1-24
Author(s):  
Shashi Kant Chaudhary ◽  
Kiran Raj Pandit
Keyword(s):  
Regression Analysis ◽  
Price Elasticity ◽  
Scenario Analysis ◽  
Commercial Banks ◽  
Banking Industry ◽  
Credit Market ◽  
Panel Regression ◽  
Lending Rate ◽  
Anomalous Relationship

During 2015 to 2019, there was a significant upsurge observed in the lending rate in Nepalese credit market. Interestingly, the lending amount also went up significantly in this period showing an anomalous relationship between lending and lending rate. This paper is an attempt to analyse this observed anomaly. We have estimated and examined the degree of elasticity of sectoral lending with lending rate in Nepalese context undertaking panel regression analysis covering all 28 commercial banks in operation in Nepal till mid-July 2019.The results show a positive and inelastic relationship to exist between sectoral lending and lending rate during the study period despite decreasing Herfindahl-Hirschman index in the same period, which means that level of competition is increasing in Nepalese banking industry. Our scenario analysis indicates syphoning of funds, and the changed role of bankers as major causes for this anomalous relationship.

scholarly journals How does liquidity influence bank profitability? A panel data approach

Accounting ◽  
2021 ◽  
pp. 59-64 ◽  
Author(s):  
Thu-Trang Thi Doan ◽  
Toan Ngoc Bui
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Commercial Banks ◽  
Return On Assets ◽  
Bank Profitability ◽  
Liquid Asset ◽  
Gmm Estimation ◽  
Macroeconomic Control ◽  
Bank Managers ◽  
The Impact

This study investigates the impact of liquidity on bank profitability. Particularly, bank profitability is measured by return on assets (ROA) while liquid assets to total assets (LATA) and total loans to total deposits (TLTD) are indicators of bank liquidity. A panel data of 26 Vietnamese commercial banks are obtained over the period 2013-2018. The GMM estimation is adopted to test the significant effect of liquidity on profitability of Vietnamese commercial banks. The results reveal that profitability (ROA) was negatively influenced by liquid asset ratio (LATA) and positively correlated to loan-to-deposit ratio (TLTD). Further, bank profitability was also affected by macroeconomic control variables like economic growth (EG) and inflation (INF). The results are not only essential for bank managers but also provide scholars a valuable reference.

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