Going from Regulation to Supervision: Support for Paradigm Shift from an Efficiency Study of the Merchant Banking Industry In Singapore

2002 ◽  
Vol 05 (01) ◽  
pp. 31-51 ◽  
Author(s):  
Guan Hua Lim
Keyword(s):  
Financial Institutions ◽  
Paradigm Shift ◽  
Banking Industry ◽  
Financial Institution ◽  
Reliable Indicator ◽  
New Paradigm ◽  
Financial Strength ◽  
Cost Efficiencies ◽  
Over Time

Increasingly we are witnessing a paradigm shift from checklist style regulations of financial institutions to one that emphasizes supervision and the role of the marketplace. Advocates of this new paradigm argue that the size and financial strength of a financial institution does not necessarily equate to excellence and efficiency. This paper offers as evidence from an efficiency study of the merchant banking industry in Singapore that such a paradigm shift is appropriate. The findings of the study indicate that the efficiencies of the merchant banks do not appear to change much over time, profit and cost efficiencies are un-correlated, and that size is not a reliable indicator of efficiency.

Journey of Financial Inclusion Driven by Indian Banking Industry

2018 ◽  
pp. 186-223
Author(s):  
Abhineet Saxena ◽  
Ashish Sharma
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural Population ◽  
Banking Industry ◽  
Financial Inclusion ◽  
North Eastern ◽  
North Eastern Part ◽  
Made In

Financial institutions, especially banks, have proved to be a boon for the economic development of a country like India. An attempt has been made in the present chapter to analyze the state of financial inclusion and the role of banking in achieving full financial inclusion in India. The journey of financial inclusion through banking in India has been critically appraised. Some of the important outcomes that can be highlighted are increased banking access of rural population in past few years together with the huge expansion in banking infrastructure in rural areas. Banking in India has been transformed with the introduction of PMJDY, BC Model, etc. Increasing trend has been observed in IMPS and M-Wallet penetration. North-eastern part of the country is still a challenge in the way of financial inclusion. The journey of financial inclusion on the wheels of Indian banking industry is still in search of the ultimate destination, and it will take miles to achieve full financial inclusion.

scholarly journals The study of host–microbiome (co)evolution across levels of selection

2020 ◽  
Vol 375 (1808) ◽  
pp. 20190604 ◽  
Author(s):  
Britt Koskella ◽  
Joy Bergelson
Keyword(s):  
Paradigm Shift ◽  
Dynamic Nature ◽  
Theme Issue ◽  
Critical Question ◽  
Microbiome Composition ◽  
Single Host ◽  
Host Evolution ◽  
Existing Data ◽  
Over Time

Microorganismal diversity can be explained in large part by selection imposed from both the abiotic and biotic environments, including—in the case of host-associated microbiomes—interactions with eukaryotes. As such, the diversity of host-associated microbiomes can be usefully studied across a variety of scales: within a single host over time, among host genotypes within a population, between populations and among host species. A plethora of recent studies across these scales and across diverse systems are: (i) exemplifying the importance of the host genetics in shaping microbiome composition; (ii) uncovering the role of the microbiome in shaping key host phenotypes; and (iii) highlighting the dynamic nature of the microbiome. They have also raised a critical question: do these complex associations fit within our existing understanding of evolution and coevolution, or do these often intimate and seemingly cross-generational interactions follow novel evolutionary rules from those previously identified? Herein, we describe the known importance of (co)evolution in host–microbiome systems, placing the existing data within extant frameworks that have been developed over decades of study, and ask whether there are unique properties of host–microbiome systems that require a paradigm shift. By examining when and how selection can act on the host and its microbiome as a unit (termed, the holobiont), we find that the existing conceptual framework, which focuses on individuals, as well as interactions among individuals and groups, is generally well suited for understanding (co)evolutionary change in these intimate assemblages. This article is part of the theme issue ‘The role of the microbiome in host evolution’.

scholarly journals Effects of Shareholder Groups on the Factoring Institutions Profitability: Evidence from Germany

2015 ◽  
Vol 7 (11) ◽  
pp. 39 ◽  
Author(s):  
Sven Koch
Keyword(s):  
Financial Institutions ◽  
Trade Credit ◽  
Financial Institution ◽  
Growth Potential ◽  
Balance Sheets ◽  
Capital Financing ◽  
Financial Holding ◽  
Administrative Expenses ◽  
Market Consolidation

<p>The significant role of trade credit in financing large companies and small and medium-sized enterprises leads to high stocks of account receivables within the balance sheets of German firms. As a result the importance of working capital financing is growing and the demand for accounts receivables financing (factoring) increases. The German factoring industry is dominated by banks. In addition to bank-owned financial institutions, many non-bank financial institutions are represented on the market. In a context of a continuing market consolidation, it is of interest whether there are differences in terms of profitability depending on shareholder groups (financial institution, non-financial institution, non holding). The German factoring market is an extremely growing market with further growth potential in an ongoing market consolidation. A further market consolidation is probable because the administrative expenses of small financial institutions and institutions without any holding are high. However, subsidiaries of a financial holding or non-financial holding show significantly lower administrative expenses. The results show that the profitability of the financial institutions is significantly influenced by the shareholders and the size of the institution. Financial institutions of a financial holding (bank-owned) are significantly less profitable than institutions without any holding or institutions of a non-financial holding. A similar picture emerges in the achieved margins of factors.</p>

THE ROLE OF FINANCIAL INSTITUTION MARKETIZATION IN CHINA’S INDUSTRIAL CONTESTABILITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1245-1261
Author(s):  
XIAOHUI HOU ◽  
CHENG LI ◽  
QING WANG
Keyword(s):  
Financial Institutions ◽  
Firm Size ◽  
Conditional Distribution ◽  
Positive Impact ◽  
Financial Institution ◽  
Negative Effect ◽  
Size Of Firms ◽  
Average Size ◽  
Number Of Firms

In this paper, we investigate how the marketization of financial institutions affects China’s industrial contestability. Our empirical results show that a higher degree of marketization of financial institutions is significantly associated with both the operation of more firms and the smaller average size of firms. Moreover, the lower and upper quartiles of the conditional distribution of firm size are all significantly negatively associated with the higher marketization degree of financial institutions, whereas increased financial institution competition and market-oriented allocation of credit funds have greater negative effect on the average size of larger firms, relative to smaller firms. In sum, improvements on the degree of marketization of financial institutions lead to an increase in the number of firms and a reduction in the average size of firms in China’s industry. Therefore, the marketization of financial institutions has a significant positive impact on China’s industrial contestability.

scholarly journals Paradigm Shift and Diversity in Finance

2020 ◽  
Vol 2 (1) ◽  
pp. 1-1 ◽  
Author(s):  
Fatima Sultana
Keyword(s):  
Research Methodology ◽  
Paradigm Shift ◽  
World Knowledge ◽  
New Paradigm ◽  
The Social ◽  
Social Theories ◽  
The World

This study provides an overview of the four paradigms from which the social theories are usually devised. More particularly, this study highlights the paradigm to which finance theories belong. The study discusses the four paradigms on the basis of their ontology, epistemology, axiology, and research methodology. Rather than creating new paradigm, it explains the role of paradigms, other than Positivist paradigm, in Finance. It concludes that positivist paradigm must adopt the tools of other paradigms to enhance its ability to contribute to the world knowledge.

scholarly journals PERAN ACCOUNT OFFICER DI LEMBAGA KEUANGAN SYARI’AH (Studi Kasus di BMT Citra Mandiri Syari’ah Jepara)

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Fuad Riyadi ◽  
Sri Wahyuni
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Research Data ◽  
Long Run ◽  
Financing Problem

<p> Account officer has a very important role. This role will affect the level of profit earned by a financial institution. This is because the handler of transactions that occur between the customer and the Financial Institution is in the hands of the account officer. This study aims to analyze the role of account officer in BMT Citra Mandiri Syariah in Jepara. The research data were collected through interviews with the respondents. The results of this study indicate that the role of account officer especially in BMT Citra Mandiri Syariah Jepara is very important. This role can ultimately affect the level of profit to be gained. This is because the role of account officer who handles transactions between customers with financial institutions, including the process of financing problem settlement. In the long run the role of account officer can affect the level of cutomer loyalty.</p><p>Keywords:role,account officer,loyalty<br /><br /></p>

Part I United States, 3 Lehman’s Derivative Portfolio: A Chapter 11 Perspective

2017 ◽  
Author(s):  
Lubben Stephen J
Keyword(s):  
United States ◽  
Financial Institutions ◽  
Financial Institution ◽  
Systemic Risks ◽  
Increased Risk ◽  
Will Force ◽  
Derivatives Markets ◽  
Safe Harbours

This chapter looks at the immediate cause of Lehman’s failure, which it argues was the repo market and the company’s inability to access funding for its operations at that time. Lehman’s derivatives were not the direct cause of its failure, but its derivatives, and the growth of the derivatives markets in general, led to the assumption of outsized risks and systemic weaknesses that facilitated the crisis. This chapter suggests that the continuation of the safe harbours ‘as is’ renders chapter 11 nonviable for larger financial institutions, and recent contractual attempts to work around the safe harbors are insufficient to solve the problem, while the increased role of clearinghouses in financial institution failures will force regulators to confront difficult choices. In short, the regulators will have to balance two competing systemic risks: the risk of an unruly resolution of the financial institution, balanced against increased risk to the clearinghouse.

The Covenants and Financial Crises

2018 ◽  
Author(s):  
Christine Kaufmann
Keyword(s):  
Human Rights ◽  
Financial Institutions ◽  
Financial Crises ◽  
Active Role ◽  
International Financial Institutions ◽  
New Paradigm ◽  
Financial Regulations ◽  
Different Types ◽  
Conflicting Interests

This chapter identifies three key elements for effectively implementing the Covenants in times of financial crisis: a people-oriented, rights-based perspective, a process to foster coherence, and a new paradigm for bridging the gap between human rights and international financial regulations. It first analyses the anatomy of different types of financial crises from a rights-holder perspective and identifies the key actors and their potential impacts. It shows that, while financial crises share commonalities, their triggers, involved actors, and effects may vary substantially, leading to a complex web of relationships and responsibilities and norm fragmentation. This feeds into an expansion of focus from people to process and coherence with an analysis of the human rights responsibilities of international financial institutions and their members. The chapter concludes by suggesting translational human rights as a new paradigm for bridging the identified conceptual gaps and conflicting interests, and to pave the way for a more active role of the Covenants.

scholarly journals Deep calibration of financial models: turning theory into practice

2021 ◽  
Author(s):  
Patrick Büchel ◽  
Michael Kratochwil ◽  
Maximilian Nagl ◽  
Daniel Rösch
Keyword(s):  
Neural Networks ◽  
Financial Institutions ◽  
Model Calibration ◽  
Financial Models ◽  
Financial Institution ◽  
Real Life ◽  
Model Parameters ◽  
Practical Application ◽  
Business Decisions ◽  
Over Time

AbstractThe calibration of financial models is laborious, time-consuming and expensive, and needs to be performed frequently by financial institutions. Recently, the application of artificial neural networks (ANNs) for model calibration has gained interest. This paper provides the first comprehensive empirical study on the application of ANNs for calibration based on observed market data. We benchmark the performance of the ANN approach against a real-life calibration framework that is in action at a large financial institution. The ANN based calibration framework shows competitive calibration results, roughly four times faster with less computational efforts. Besides speed and efficiency, the resulting model parameters are found to be more stable over time, enabling more reliable risk reports and business decisions. Furthermore, the calibration framework involves multiple validation steps to counteract regulatory concerns regarding its practical application.

scholarly journals Tantangan Konversi Bank Konvensional Menjadi Bank Syariah di Aceh Berdasarkan Qanun Lembaga Keuangan Syariah No 11 Tahun 2018

2020 ◽  
Vol 3 (2) ◽  
pp. 229
Author(s):  
Rahmawati Rahmawati ◽  
Khairul Putriana
Keyword(s):  
Financial Institutions ◽  
Banking Industry ◽  
Financial Institution ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Institutions ◽  
Conventional Banks ◽  
Conventional Bank

<p><em>The presence of the Islamic Financial Institution Qanun No 11 </em><em>in </em><em>2018 is a special right for Aceh and has brought a breath of fresh air to the development of the Islamic banking industry in Aceh, a number of conventional banks in Aceh are required to convert to Islamic banks, The purpose of this study is to explain the procedure for accelerating the conversion of unconventional banks to Islamic banks in Aceh and to explain the challenges of banking institutions with the obligation to convert financial institutions in Aceh. The obligation to convert a conventional bank into a sharia bank is clearly as stipulated in article 6 points e and d, although the process of converting a conventional bank to a sharia bank is not found directly in the qanun, but every bank that does the conversion must refer to BI regulations namely PBI No. 11 / 15 / PBI-2009, this is as explained in article 12 "before carrying out business activities, LKS must have a business license in accordance with the provisions of the legislation".</em></p><br /><p> </p>

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