scholarly journals KEY FACTORS OF NON-PERFORMING LOANS IN BALTIC AND SCANDINAVIAN COUNTRIES: LESSONS LEARNED IN THE LAST DECADE

Ekonomika ◽  
2017 ◽  
Vol 96 (2) ◽  
pp. 43-55
Author(s):  
Kazys Kupčinskas ◽  
Arvydas Paškevičius
Keyword(s):  
Financial Stability ◽  
Banking Industry ◽  
Lessons Learned ◽  
Gdp Growth ◽  
Baltic Countries ◽  
Country Level ◽  
Net Interest Margin ◽  
Financial Soundness ◽  
The Baltic ◽  
Major Factors

A cross-country panel data regression was performed for non-performing loans (NPL) in Denmark, Estonia, Finland, Latvia, Lithuania and Sweden covering a period of years 1998-2014. The main objective was to determine the major factors that were driving the NPL in the selected countries. Also, we expected to draw the differences in the banking industry between emerging economies in the Baltic countries and Western economies in the Scandinavian region. The selected variables were banking industry-related (net interest margin, ROA, ROE) and macroeconomic variables (GDP growth, RE prices, Unemployment), of which the majority is included as the Financial Soundness Indicators by the IMF. Key findings of the research show that NPL in both regions were mostly dependent on GDP growth and Unemployment, whereas the banking industry variable ROA had a very moderate effect only on a country level. The research is contributing to a better understanding of financial stability in the banking industry during the last decade, and it may have possible implications for the macroprudential policy.

scholarly journals A GENETIC PROGRAMMING APPROACH FOR ESTIMATING ECONOMIC SENTIMENT IN THE BALTIC COUNTRIES AND THE EUROPEAN UNION

2021 ◽  
Vol 27 (1) ◽  
pp. 262-279
Author(s):  
Oscar Claveria ◽  
Enric Monte ◽  
Salvador Torra
Keyword(s):  
European Union ◽  
Fitness Function ◽  
Predictive Performance ◽  
Programming Approach ◽  
Gdp Growth ◽  
The European Union ◽  
Baltic Countries ◽  
Non Linear ◽  
Out Of Sample ◽  
The Baltic

In this study, we introduce a sentiment construction method based on the evolution of survey-based indicators. We make use of genetic algorithms to evolve qualitative expectations in order to generate country-specific empirical economic sentiment indicators in the three Baltic republics and the European Union. First, for each country we search for the non-linear combination of firms’ and households’ expectations that minimises a fitness function. Second, we compute the frequency with which each survey expectation appears in the evolved indicators and examine the lag structure per variable selected by the algorithm. The industry survey indicator with the highest predictive performance are production expectations, while in the case of the consumer survey the distribution between variables is multi-modal. Third, we evaluate the out-of-sample predictive performance of the generated indicators, obtaining more accurate estimates of year-on-year GDP growth rates than with the scaled industrial and consumer confidence indicators. Finally, we use non-linear constrained optimisation to combine the evolved expectations of firms and consumers and generate aggregate expectations of of year-on-year GDP growth. We find that, in most cases, aggregate expectations outperform recursive autoregressive predictions of economic growth.

scholarly journals Banking sector concentration, competition and financial stability: the case of the Baltic countries

2019 ◽  
Vol 32 (2) ◽  
pp. 215-249 ◽  
Author(s):  
Juan Carlos Cuestas ◽  
Yannick Lucotte ◽  
Nicolas Reigl
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Baltic Countries ◽  
The Baltic

scholarly journals Investment Climate Factors in the Baltic Countries

2013 ◽  
Vol 52 (1) ◽  
pp. 94-101
Author(s):  
Algimantas Misiūnas ◽  
Dovilė Gudeliauskaitė
Keyword(s):  
Climate Factors ◽  
Investment Climate ◽  
Key Factors ◽  
National Data ◽  
Real Situation ◽  
Foreign Investors ◽  
Baltic Countries ◽  
Country Level ◽  
Macroeconomic Indicators ◽  
The Baltic

This paper examines the investment climate factors in Lithuania, Latvia and Estonia. It discusses the factors within the firm and country level; highlights relevant key factors common to all countries that affect the investment climate and increase the country’s attractiveness to foreign investors; discusses the main macroeconomic indicators, the most important foreign investors, shows real situation and considers the factors and areas that require government’s attention on investing in improving the situation; provides comparable national data allowing comparison between the countries, as well as to the overall investment climate in the Baltic countries; presents the theoretical and practical investment climate factors in the final conclusions and suggestions.

scholarly journals ScanBalt BioRegion: A model case for Europe

10.5912/jcb67 ◽  
1969 ◽  
Vol 10 (2) ◽  
Author(s):  
Wolfgang Blank ◽  
Bo Samuelsson ◽  
Peter Frank
Keyword(s):  
Critical Mass ◽  
Baltic Region ◽  
Model Case ◽  
Baltic Countries ◽  
The North ◽  
The World ◽  
The Usa ◽  
The Baltic ◽  
Major Factors ◽  
North Western

Europe takes part in a global competition for scientists, capital and knowledge – major factors of importance for societal growth. In the USA, regions such as Bay Area, Massachusetts and North Carolina, in particular, have developed to a critical mass far beyond the potentials of individual regions in Europe or other parts of the world. The foundation of the ScanBalt BioRegion as a pan-European life science/biotechnology collaboration has the perspective of closing this gap. The greater Nordic-Baltic region – including the Nordic countries, the Baltic countries, North Germany, Poland and the north-western part of Russia – constitutes a meta-region with a great pool of knowledge, capital and resources. In recognition of these potentials, the Nordic-Baltic region has marked itself as one of the world's most proactive in terms of building cross-sector and pan-regional networks and cooperation at local, regional and meta-regional levels.As a consequence private companies, public institutions and governments are aiming to create an internationally competitive and prosperous meta-region comprising Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Poland, Sweden, north-western part of Russia and the northern part of Germany. Thereby the political visions, for years expressed by, for example, the Baltic Development Forum, are becoming a reality in the world of biotechnology and life sciences – the frontier of a knowledge-based society. The emerging meta-region is named the ScanBalt BioRegion.

scholarly journals Lessons learned from the Baltic countries’ response to the first wave of COVID-19

Health Policy ◽  
2021 ◽  
Author(s):  
Erin Webb ◽  
Juliane Winkelmann ◽  
Giada Scarpetti ◽  
Daiga Behmane ◽  
Triin Habicht ◽  
...  
Keyword(s):  
Lessons Learned ◽  
Baltic Countries ◽  
The Baltic

scholarly journals The effect of revenue diversification on the firm value and stability of banks: A comparative study of Nigerian and Malaysian banks

2021 ◽  
Vol 16 (3) ◽  
pp. 141-151
Author(s):  
Oluwaseyi Olalere ◽  
Md. Aminul Islam ◽  
Marniati ◽  
Nurulul Rahmi
Keyword(s):  
Firm Value ◽  
Financial Stability ◽  
Emerging Market ◽  
Empirical Literature ◽  
Current Debate ◽  
Gdp Growth ◽  
Revenue Diversification ◽  
Interest Income ◽  
Net Interest Margin ◽  
Administrative Expenses

This study contributes to the current debate on the downsides and benefits of revenue diversification. Diversification may affect banks when they invest in riskier activities with lower returns, while they benefit from diversified activities that are less risky but have higher returns. The study offers extended implications in the empirical literature using a different measure of revenue diversification from an emerging market perspective. The study uses recent financial data from 26 Malaysian and Nigerian banks for the period 2009–2017, totaling 234 observations. The GMM estimation technique is employed to test the relationship. The results show that revenue diversification – non-interest income/gross revenue ratio (NII), fee and commission income/revenue ratio (NII1), and non-interest income/total assets ratio (NIITA) – significantly affect the firm value and stability of Nigerian banks. Liquidity, administrative expenses, net interest margin (NIM), non-performing loans (NPL), size, GDP growth rate and inflation also affect the firm value and stability of a bank. For Malaysian banks, diversification variables do not significantly affect firm value of a bank, while liquidity, administrative expenses, NIM and size significantly affect firm value. Diversification (NII and NIITA), liquidity, administrative expenses, NIM, NPL, size, GDP growth and inflation rate has a significant impact on the stability of Malaysian banks. The study concludes that revenue diversification affects both the firm value and stability of banks, and to achieve sound financial stability, banks that focus on interest-generating activities may diversify into non-interest-generating activities.

scholarly journals FINANCIAL STABILITY LEVEL ON BANKING INDUSTRY Comparative Analysis Between Islamic and Conventional Bank In Indonesia

2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Alvien Nur Amalia
Keyword(s):  
Comparative Analysis ◽  
Financial Stability ◽  
Banking Industry ◽  
Tax Credits ◽  
Islamic Banking ◽  
Gdp Growth ◽  
Islamic Banks ◽  
Macroeconomic Factors ◽  
Conventional Banks ◽  
The Stability

Financial stability in the banking industry is important because it is a dynamicand high-risk industry. The purpose of this study was to compare the stability ofIslamic and conventional banking in Indonesia by assessing the level of volatility ofReturn on Assets (ROAV), managerial stability which can be seen from the value ofTobin’s Q, Non-Performing Loans/ Financing and liquidity in both of banking andusing 11 Islamic banks and 11 conventional banks as samples. The quarterly secondarydata was used in the observation start in 2011 and will end in 2013 using paneldata regression. The results of the study explained that there are several factors, bothinternal banks factors consist of banking profit before tax, credits to total assets ratio,the ratio of loss reserves to total financing, operating expenses to income operationalratio and macroeconomic factors include the level of the exchange rate rupiah toUSD, BI Rate, and GDP growth are significantly influence the financial stability ofIslamic and conventional banking. The conclusion indicates that the level of financialstability of Islamic banking is still lower than conventional banking.

On the Major Differences between the Banking Systems of the EAEU States

2020 ◽  
Vol 26 (4) ◽  
pp. 397-406
Author(s):  
T. E. Chekanova
Keyword(s):  
Financial Stability ◽  
Systems Approach ◽  
Negative Impact ◽  
Banking Regulation ◽  
Member States ◽  
Banking Systems ◽  
Significant Negative Impact ◽  
The Difference ◽  
The Government ◽  
Major Factors

The presented study examines the problems of integration of the national banking systems of the member states of the Eurasian Economic Union (EAEU).Aim. The study aims to examine the major differences in various aspects of functioning of banking systems in the EAEU member states in terms of their impact on integration processes.Tasks. The author identifies the most prominent features of the banking systems of the EAEU states; reveals the depth of the existing differences through a comparative analysis of various indicators of national banking systems; outlines ways of overcoming integration problems associated with differences in the banking sectors of the Union states.Methods. This study is based on universal general scientific methods and elements of comparative, functional, and economic analysis within the framework of a systems approach. The author uses regulatory documents and banking reports of the EAEU states, statistical and analytical materials of the Eurasian Economic Commission (EEC), and data of Moody’s international rating agency.Results. The study identifies a number of aspects that contain the major differences in the functioning of banking systems in the EAEU member states; highlights the disproportions in the scale, level of development, financial stability, and risks of the banking spheres of the Union states; comparatively analyzes the proportion of banking and non-banking structures in the system and the share of the government and non-resident companies in the capital of banks; marks the difference in the pricing of banking services; determines differences in the existing approaches to banking regulation and the established standards; analyzes the major differences in the legislative acts of the central banks and governments of the EAEU member states and in the terms and definitions used. According to the results of the study, the major factors hindering the development of integration processes between the banking systems of the EAEU states are identified.Conclusions. The existing differences between the banking systems of the EAEU countries are diverse and multifaceted. The author states that the aspects addressed in this study have a significant negative impact on the further development of integration processes, describing the major directions and actions of the member states aimed at minimizing the exiting differences, which are required to facilitate the convergence of the states and the transition towards a common financial market.

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