scholarly journals Does State Ownership of Banks Matter?

2018 ◽  
Vol 17 (2) ◽  
pp. 250-285 ◽  
Author(s):  
Denis Davydov
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
State Ownership ◽  
Government Interventions ◽  
Weak Evidence ◽  
Using Data ◽  
Loan Growth ◽  
The Relationship

This article examines the effects of state ownership and government interventions on lending behaviour and capitalisation of banks over the period 2005–2011. Using data from the highly state-influenced Russian banking sector, it is documented that the relationship between state ownership and lending is nonlinear. While overall loan growth decreased and interest rates rose, it was found that fully state-controlled banks increased lending and charged lower interest rates during the crisis of 2008–2010. Moreover, fully state-owned and state-supported banks demonstrated counter-cyclical lending behaviour during the crisis. However, while state-owned banks were better protected against asset default, there is weak evidence to suggest that government interventions may result in increased riskiness of banks.

Polish banking scandal may lead to more consolidation

2018 ◽  
Keyword(s):  
Interest Rates ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Sector ◽  
Household Consumption ◽  
Financial Supervision ◽  
External Shocks ◽  
Content Type ◽  
Near Term ◽  
Loan Growth

Significance Allegations of bribery and corruption against the former chairman of Poland’s Financial Supervision Authority (KNF), the financial sector regulator, have stoked both political and regulatory tensions. Impacts The banking sector is resilient to domestic and external shocks, but a slowdown in GDP could dampen household loan growth next year. Further sector consolidation is likely and would further underline the dominance of large, state-backed financial institutions. Interest rates are unlikely to be raised before end-2019 at the earliest, providing some support to household consumption in the near term.

Bank customer loyalty and satisfaction: the influence of virtual e-CRM

2018 ◽  
Vol 9 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Eric E. Mang’unyi ◽  
Oumar T. Khabala ◽  
Krishna Kistn Govender
Keyword(s):  
Path Analysis ◽  
Banking Sector ◽  
Service Industry ◽  
Customer Relationship ◽  
Mediation Effects ◽  
Content Type ◽  
Mediating Role ◽  
Customer's Loyalty ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediating role of customer satisfaction (CS) in the electronic-customer relationship management (e-CRM) and customer’s loyalty (CL) relationship, using data from the customers of one of the largest retail banks in Kenya. Design/methodology/approach Using survey mode, the study was administered to 90 samples (of which 78 were returned and usable), with data analysed using exploratory factor analysis to determine scale validity, and path analysis and multiple regression modelling to test hypotheses. Findings This study revealed that the interaction between e-CRM transaction features and CS was statistically significant and predicted CL, however, the interaction did not significantly account for more variance than just e-CRM features and CS. The path analysis revealed a lack of potential significant mediation effects of CS on the relationship between e-CRM and CL. Research limitations/implications Although this research may have sampling limitations and also that the model fit is confined in a single bank/service industry, the estimated model was reasonable enough and has the potential of being repeated in future studies. Originality/value The principle contribution of the present research is it supplies unique learning to bank managers and scholars alike through conceptualising and subsequently empirically verifying the path e-CRM and e-loyalty via CS, and that CS does not mediate the relationship between the aforementioned constructs. By investigating the e-CRM practices of an existing case study, it provides insights of the issue and compare to literature, therefore supplying a thorough and detailed analysis to understand the phenomenon under investigation valuable for banking sector.

Nowcasting Capacity Utilization in Turkey

2017 ◽  
pp. 214-246
Author(s):  
Özlem Taşseven
Keyword(s):  
Interest Rates ◽  
Phillips Curve ◽  
Production Capacity ◽  
Capacity Utilization ◽  
The Great Recession ◽  
Financial Variables ◽  
Consumption Index ◽  
Using Data ◽  
Macro Variables ◽  
The Relationship

Capacity utilization in macroeconomics is always related to inflation rate and unemployment level. However, the Great Recession has taught us that there might have been other factors considered in determining and/or be determined by capacity utilization. In order to further enhance Phillips Curve relationship unconventional variables such as financial and survey variables are considered. The relationship between capacity utilization rates and several real variables such as industrial production, gross domestic product growth rate, unemployment rate, consumer expenditures, financial variables such as return on BIST 100 index, exchange rate of currency basket, interest rates, survey variables such as consumer consumption index, business tendency survey and survey of expectations is investigated using data between 2006 and 2015 for Turkey. All of the above-mentioned variables indicate the production capacity and their repercussions on other macro variables except the level of standard of living. We also highlight the repercussions of production capacity concerning welfare state.

scholarly journals Determinants of mergers and acquisitions among Finnish cooperative and savings banks

2021 ◽  
Author(s):  
Matias Huhtilainen ◽  
Jani Saastamoinen ◽  
Niko Suhonen
Keyword(s):  
Mergers And Acquisitions ◽  
Savings Banks ◽  
Specific Factors ◽  
Using Data ◽  
Loan Growth ◽  
The Relationship ◽  
Bank Specific Factors

AbstractThis study is the first to examine mergers and acquisitions among small, regional stakeholder banks that belong to the same group. Using data on Finnish unlisted cooperative and savings banks, we investigate the relationship between bank-specific factors and the likelihood of a bank being an acquirer or an acquisition target. We find that large banks tend to acquire small and inefficient banks. Additionally, we examine the loan growth and find a negative (positive), statistically significant association with the likelihood of a bank being an acquisition target (acquirer). Finally, we document an increase in the likelihood of a bank being an acquisition target subsequent to an increase in the share of net fees and commission income against total assets.

scholarly journals Competition in the Georgian banking sector and its impact on the credit policy of commercial banks

2021 ◽  
Vol 342 ◽  
pp. 08003
Author(s):  
George Abuselidze ◽  
Mariam Sharabidze
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Current Situation ◽  
Competitive Environment ◽  
Credit Policy ◽  
The Impact ◽  
The Relationship

Based on the role of banking sector in the development of the country’s economy, we consider it important to study the current situation in this sector. The existence of a competitive environment ensures the efficient functioning of the banking sector. The aim of the study is to estimate the competitive environment in the banking sector, to determine the relationship between competition and interest rates. The research is based on the use of different economic models and indexes. Competition in the banking sector is studied on the example of Georgian banking sector, for that we used HHI Net Loans and H-statistic indicators. The study analyses the impact of competition in the banking sector on the net interest income and interest rate in the same sector.

Bank Contracts in Albanian Legislation, Legal and Practical Issues in this Field

2016 ◽  
Vol 3 (1) ◽  
pp. 122
Author(s):  
Ardvin Kraja
Keyword(s):  
Interest Rates ◽  
Economic Activity ◽  
Banking Sector ◽  
Specific Treatment ◽  
High Interest ◽  
Banking Activity ◽  
Household Credit ◽  
The Law ◽  
The Republic ◽  
The Relationship

Banks perform an economic activity that is based on principles similar to those of an ordinary business. Banking activity includes the acceptance of deposits of individuals, firms, etc. As a result of the major needs and demands of the economy, household credit, with pertaining high interest rates, the banking sector dynamics experienced a high development. This progress has emerged since the establishment of relations between these banks and individuals by creating a particular system of rights as the law of banking, the focus of which is in the relationship between banks and customers. This kind of relationship is focused on banking contract. Various problems that have emerged from the effect of agreements between parties have brought the need for rating this field of law. Except the provisions provided in the Civil Code about the banking contract, specific laws for the regulation of this relation were approved. As instance could be mentioned the Law on Banks in the Republic of Albania and the normative framework that addresses the whole activity of banks in the territory, upon which the Albanian state has sovereignty. Specific treatment is required about the relations of banks with the customers, where may arise major legal and economic difficulties, because banks are major monetary formations

scholarly journals The effect of decreasing interest rates on European banks’ earnings quality

2019 ◽  
Vol 14 (2) ◽  
pp. 174-180 ◽  
Author(s):  
Andras Takacs ◽  
Tamas Szucs
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Banking Sector ◽  
Earnings Quality ◽  
Developed Countries ◽  
Eastern European ◽  
Remarkable Effect ◽  
European Banks ◽  
Using Data ◽  
Eastern European Countries

Earnings quality (EQ) is an indicator generally defined as a mix of many components like persistence, predictability, volatility and smoothing of earnings. This study is based on the hypothesis that in the banking sector, any changes in interest rates make a remarkable effect on these characteristics of earnings, and thus may influence EQ. Between 2007 and 2015, there has been a general decreasing trend in interest rates across Europe, with varying slopes in different countries. Using data of 128 European banks from 27 countries, it is examined how the extent of interest rate decrease influenced the EQ of banks. It was found that the extent of interest decrease negatively affects earnings quality, meaning that the EQ of banks located in countries with less drastic relative interest cuts between 2007 and 2015 (typically less developed Central and Eastern European countries) is higher than the EQ of banks from developed countries with significant relative interest cuts in the same period.

Smaller Businesses and Relationship Banking: The Impact of Participative Behavior

1997 ◽  
Vol 21 (4) ◽  
pp. 83-92 ◽  
Author(s):  
Martin R. Binks ◽  
Christine T. Ennew
Keyword(s):  
Small Firms ◽  
Banking Sector ◽  
Credit Rationing ◽  
Alternative Mechanism ◽  
Information Asymmetries ◽  
Relationship Types ◽  
Using Data ◽  
The Impact ◽  
Flow Of Information ◽  
The Relationship

Although the venture capital industry is undoubtedly of Importance, the majority of finance to smaller businesses continues to be provided by the banking sector. The provision of finance to these businesses is generally thought to be characterized by Information asymmetries, which are likely to lead to some form of credit rationing. To the extent that credit rationing occurs, viable enterprise may be lost. While collateral is commonly cited as a means of counteracting the information asymmetries that lead to credit rationing, an alternative mechanism is to improve the flow of information between business and bank. This is most commonly achieved through the development of a close working relationship. The success of such a relationship depends upon the willingness of both parties to involve themselves with each other and work together. This paper examines the nature of the banking relationship, paying particular attention to the idea of relationship participation and the benefits that accrue to both parties as a result of participation. Using data from over 3000 UK small firms, It is possible to identify four broad relationship types based on the degree to which the bank and the business participate in the relationship. A comparison across different relationship types suggests that there are considerable benefits associated with more participative relationships.

China's Financial Repression: Symptoms, Consequences and Causes

2018 ◽  
Vol 36 (1) ◽  
pp. 28-49 ◽  
Author(s):  
GUANGDONG XU
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
State Ownership ◽  
Chinese Government ◽  
Political Factors ◽  
Financial Repression ◽  
Party Control ◽  
Diffi Cult ◽  
Effi Ciency ◽  
The Government

China's fi nancial system conforms to the stereotype described by the theory of financial repression. The banking sector is dominated by state ownership, interest rates are controlled by the government and credit allocation is heavily influenced by political factors rather than by commercial motives. The severity of repression in China's financial sector increased to an unprecedented level after 2008, when the Chinese government poured enormous financial resources into the economy as a response to the financial crisis. Financial repression has seriously damaged the sustainability of China's economy by decreasing economic effi ciency. However, financial repression may be maintained in the future despite its harmful effects because for the Chinese Communist Party control over fi nancial resources is a powerful weapon that can be used when necessary to address certain economic, political or social problems that may endanger its rule. Given the importance of fi nancial resources to the rule of the Party, it is diffi cult to imagine that it will eventually adopt a liberalization strategy and relinquish its control over the financial system.

Internationalization speed and firm innovation: the moderating roles of negative attainment discrepancy and state-ownership

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiuping Peng ◽  
Xi Zhong ◽  
Huaikang Zhou ◽  
Shanshi Liu
Keyword(s):  
Fixed Effects ◽  
State Ownership ◽  
Decision Makers ◽  
Firm Innovation ◽  
Content Type ◽  
Chinese Listed Companies ◽  
Internationalization Speed ◽  
Using Data ◽  
Panel Fixed Effects ◽  
The Relationship

Purpose This paper aims to investigate the moderating roles of negative attainment discrepancy and state ownership in the relationship between internationalization speed and firm innovation. Design/methodology/approach Panel fixed-effects regressions model was applied to test the influence of internationalization speed on firm innovation using data collected from Chinese listed companies between 2003 and 2017. Findings The internationalization speed can positively promote firm innovation. Moreover, negative attainment discrepancy enhances the effect of internationalization speed on firm innovation. The effect of negative attainment discrepancy on internationalization speed and firm innovation performance is more positive in state-owned firms than in non-state-owned firms. Research limitations/implications A suitable time of internationalization speed to affect firm innovation is obtained. Practical implications This paper suggests that decision-makers should set an appropriate aspiration to internationalize firms and increase firm innovation. Moreover, state-owned enterprises should pay attention to negative attainment discrepancies. Originality/value The study revealed the boundary conditions of negative attainment discrepancy and state ownership on the relationship between internationalization speed and firm innovation, contributing to the theoretical advancements in internationalization speed.

Sign in / Sign up

Export Citation Format

Share Document