scholarly journals Loan portfolio and nonperforming loans in Western Balkan Countries

2019 ◽  
Vol 7 (4) ◽  
pp. 10-20
Author(s):  
Qazim Tmava ◽  
Ajtene Avdullahi ◽  
Besë Sadikaj
Keyword(s):  
Developing Countries ◽  
Comparative Analysis ◽  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Controversial Issues ◽  
Loan Portfolio ◽  
Nonperforming Loans ◽  
Balkan Countries ◽  
Macroeconomic Indicators

Non-performing loans (NPLs) present one of the most controversial issues in both developed and developing countries. The main purpose of this paper is to analyze and compare the loan portfolio and NPLs in the Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia for the period 2008-2015. Besides, this research aims to make a comparative analysis of some other macroeconomic indicators and industry factors that affect them such as GDP, banking sector assets, loan portfolio, asset participation in GDP, credit participation in GDP, deposit credit ratio, the NPL report on total loans. The results show that the NPL have had a growing trend in the post-global financial crisis, with different variations. In this regard, the highest rate of NPL reflects Serbia, Albania, followed by Montenegro, B&H, and Macedonia, while the lowest rate is in Kosovo.

scholarly journals Analysis of the Banking Sector Performance in Bosnia and Herzegovina, Montenegro and Serbia Before and After the Global Financial Crisis

ECONOMICS ◽  
2017 ◽  
Vol 5 (2) ◽  
pp. 83-101
Author(s):  
Antonija Bošnjak ◽  
Abeer Hassan ◽  
Kieran James
Keyword(s):  
Financial Crisis ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Transition Process ◽  
Open Market ◽  
Nonperforming Loans ◽  
Before And After ◽  
The Global Financial Crisis ◽  
Communist Countries

Summary The focus of this study is the banking sector of the three neighbouring countries Bosnia and Herzegovina; Montenegro; and Serbia. These are former communist countries which have been going through the transition from centrally-planned economies to open market economies over the past 25 years. During the transition process, structural reforms were conducted to transform the banking sector into a sector suitable for open market economy. These reforms are considered to be the most successful ones in the region. Before the Global Financial Crisis of 2008-09, the economies of the three selected countries were experiencing credit booms. The aim of this research was to examine how the banking sector is performing on an aggregated level years after the crisis and whether the performance is better or worse compared to the pre-crisis period. The findings show that the banking sector was performing better before the crisis in all three countries. After the crisis, the three countries experienced prolonged slow credit growth and had higher nonperforming loans.

scholarly journals The impact of ICT on Financial Sector Policy Reforms in Post-Financial crisis era in Ghana:

2020 ◽  
Vol 9 (2) ◽  
pp. 82-100
Author(s):  
Julius Yaw Asamoah ◽  
Linda Owusu-Agyei
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Sub Saharan Africa ◽  
Starting Point ◽  
Better Regulation ◽  
Policy Measures ◽  
The Impact

Ghana, like most other developing countries, is not isolated from the global financial crisis through the impact of such a crisis on economies. This paper examines the financial sector reforms and its effect on the Ghanaian economy, within the developing country context in general and in sub-Saharan Africa (SSA) in particular. The paper seeks to enhance the understanding of relevant policy measures and reflects on what else could be done. The article further studies the effect of change in the institutional environment on bank governance practices primarily to improve the industry’s supervision and regulation, related to the post-crisis exit strategies. This paper discusses the development of ICT infrastructure and application as a basis for the main dimension of Ghana’s digital transformation in financial services. This paper is, therefore, motivated by the lack of empirical studies that examines how the impact of the banking reforms play a substantial role in promoting innovative digital payment systems to replace cash transactions. From the perspective of institutional theory, the study looked at why (and how) a number of policy measures have a significant impact on the financial performance of banks? And how the applications of e-finance in ICT and financial practices, provides several benefits within the banking sector improve the sector’s image and leads to a broader, faster and more efficient market? The application of Koppenjan and Groenewegen (2005) ‘s four-layer model ‘levels of institutional analysis’ perspective seems to be the most useful starting point, which provides the basis for an improved understanding of revealing the inefficient delivery of Ghanaian banking industry in the past. A combination of a review of secondary and empirical data, interviewed used in the analysis. Findings indicate that the financial and banking sector reforms help the industry   advance digital banking culture and impact on the general expansion of the financial and the infusion of financial inclusion in Ghana. These conclusions would be particularly useful in a similar picture in other developing countries, as well as by the bank authorities to create their future policy. It also joins the debate on the impact of the banking reform, a key turning point towards better regulation to refine crisis prevention and resolution mechanisms.

scholarly journals THE IMPACT OF FUNDING STRUCTURE ON EU BANKING SECTOR STABILITY

2020 ◽  
pp. 143-154
Author(s):  
Lech Kujawski ◽  
Monika Liszewska ◽  
Marta Penczar
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Eu Countries ◽  
Macroeconomic Indicators ◽  
Banking Business ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Eu

In our paper, we analyse the impact of funding structure on banking sector stability in EU countries. Our findings show that after the global financial crisis (GFC) there are four main funding models in the EU banking sectors. We document that funding structure is an important factor influencing the banking sector stability. We report that there are also some other banking business model characteristics as well as macroeconomic indicators which have impact on banking sector risk.

Stress-testing Russian Banking System: Will Banks Need Government Assistance Again?

2010 ◽  
pp. 61-81 ◽  
Author(s):  
O. Solntsev ◽  
A. Pestova ◽  
M. Mamonov
Keyword(s):  
Stress Testing ◽  
Banking Sector ◽  
Stress Test ◽  
Banking System ◽  
Government Assistance ◽  
Methodological Issues ◽  
Loan Portfolio ◽  
Macroeconomic Indicators ◽  
Remote Stress ◽  
Capital Injections

The article analyzes factors that affect growth of the share of non-performing loans in the loan portfolio of Russian banks and proposes approaches for this share forecasting on the basis of dynamics of macroeconomic indicators. It also deals with methodological issues of remote stress-test of lending agencies. Using the results of conducted stress-test of Russian banks the authors assess their perspective capital needs in 2010 and estimate the share of government assistance in capital injections. Furthermore, the authors define the scale of vulnerable banks groups in the Russian banking sector.

Twin Peaks Regulation After the Global Financial Crisis: A Reform Model for China?

2017 ◽  
Vol 8 (3) ◽  
Author(s):  
Miao Han
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Relevant Literature ◽  
Twin Peaks ◽  
The Global Financial Crisis ◽  
Peak Model ◽  
Twin Peak

AbstractThe global financial crisis (GFC) has been defined as the worst financial crisis after the Great Depression of the 1930s. Reforms underway, as well as debates in discussion, revolve around both regulatory philosophy and approaches towards better supervisory outcomes. One of the most radical institutional reforms took place in the United Kingdom (UK), where the Twin-Peak model replaced the previous fully integrated regulator – the Financial Services Authority (FSA) under the Financial Services Act 2012. This paper argues that China should also introduce twin peaks regulation, but it is rather based on the resources of risk in its financial sector than the direct GFC challenge. In theory, the core arguments focus on the structure of agencies responsible for prudential regulation and the role played by the central bank as well. The Twin-Peak model has been further examined in terms of regulatory objectives and instruments. By method, this paper is a country-specific comparative study; Australia, the Netherlands and the UK are selected to represent different Twin-Peak models. This paper contributes to the relevant literature in two main aspects. First, it has displayed the principal pattern of the Twin-Peak model after detailing the case studies, including the relationship involving in two regulators, central bank and finance minister in particular. Based on this, second, it becomes possible to design a very specific model to reform China’s current sector-based financial monitoring regime. As far as the author knows, until end-2015, this is the first paper which has proposed such a particular model to China. It is argued that the appropriate institutional structure of market regulation should fit well in with a country’s financial market. Accordingly, the Twin-Peak model will be able to balance the regulatory tasks for the over-concentrated risk in China’s large banking sector but the underdeveloped securities market. Even though, regulatory independence will continue to be challenged.

Global Financial Crisis and Bank Productivity in Mexico

2015 ◽  
pp. 581-599
Author(s):  
Francisco Vargas Serrano ◽  
Luis Rentería Guerrero ◽  
Gang Cheng ◽  
Panagiotis D. Zervopoulos ◽  
Arnulfo Castellanos Moreno
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Significant Difference ◽  
Before And After ◽  
Domestic Banks ◽  
Productivity Indicators ◽  
The Global Financial Crisis

This chapter presents an attempt to compare the productivity of the Mexican banking sector in two different periods: the 2007-2011 period of global financial crisis and the 2003-2006 stage, which can be regarded as a relatively stable period. The purpose of this study is to disclose whether the global financial crisis affected Mexican banking productivity. Three Data Envelopment Models (DEA) are tested in order to assess whether there is a significant difference between the productivity patterns of Mexican banks before and after the financial crisis. Such models are the radial Malmquist Index, the non-radial and slacks-based model, and non-radial and non-oriented. Essentially, no significant difference of productivity indicators for both foreign and domestic banks was found. Likewise, no significant difference between the pre- and post-crisis periods was perceived, as far as productivity indicators are concerned. Therefore, the global financial crisis was effectless in banking operation.

A Strategic Approach to Global Financial Crisis in Banking Sector

2018 ◽  
pp. 2183-2205
Author(s):  
Hasan Dinçer ◽  
Ümit Hacıoğlu ◽  
Serhat Yüksel
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Fuzzy Topsis ◽  
The Other ◽  
Fuzzy Anp ◽  
Strategic Approach ◽  
The World ◽  
Strategic Goals ◽  
Privately Owned

Financial crisis affected many people and companies in the world negatively in terms of job loss and bankruptcy. Owing to this aspect, today many banks developed strategies in order to minimize the effects of any potential crisis which might be occurred in the future. Present study aims to evaluate the strategies of Turkish banks to minimize the effects of financial crisis by using fuzzy ANP and fuzzy TOPSIS methods. The study identifies that capital injection is the most significant strategy whereas the strategy of decreasing interest rate has the weakest importance. In addition to this aspect, it was also determined that privately-owned banks are the most successful banking group of Turkey with respect to the achievement of strategic goals during a financial crisis. On the other hand, state-owned banks have the lowest degree regarding this concept. The study recommends that Turkish banks should mainly focus on increasing capital amount in order to minimize the negative aspects of the crisis

Shadow prices of non-performing loans and the global financial crisis

2019 ◽  
Vol 20 (5) ◽  
pp. 411-434
Author(s):  
Ameni Tarchouna ◽  
Bilel Jarraya ◽  
Abdelfettah Bouri
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Shadow Price ◽  
Market Price ◽  
Shadow Prices ◽  
Content Type ◽  
Managerial Implications ◽  
Bad Loans ◽  
The Global Financial Crisis

Purpose This paper aims to determine the opportunity cost borne by US commercial banks to reduce non-performing loans (NPLs) by one unit within the global financial crisis framework. Design/methodology/approach To achieve this aim, the authors use the directional output distance function to estimate the technical efficiency while considering NPLs as undesirable output. Then, they estimate the shadow prices of NPLs by using the envelope theorem and solving the revenue function. Findings The results indicate that medium-sized banks are the most efficient, while small banks are the most inefficient ones. Moreover, the shadow prices of NPLs of large banks are higher than those of small and medium-sized banks. This implies a more elevated cost when lessening bad loans in large banks. This is more prominent during the crisis given that the shadow prices of NPLs of large banks have risen sharply over that period. Practical implications Shadow prices have important managerial implications given that they display the amounts of required reduced revenues to lessen NPLs. Accordingly, banks’ managers are called to reduce these loans by paying more attention when choosing their customers. Originality/value With the absence of an observable market price for bad loans in financial literature, the shadow price notion offers an adequate measure to evaluate them. To the best of authors’ knowledge, this is the first study that provides an estimation of the shadow price of NPLs in the US banking sector.

Weak-form Efficiency After Global Financial Crisis: Emerging Stock Market Evidence

2017 ◽  
Vol 16 (1) ◽  
pp. 90-113 ◽  
Author(s):  
Emenike Kalu O.
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Weak Form ◽  
Jel Classification ◽  
Fundamental Analysis ◽  
Lm Test ◽  
Weak Form Efficiency

This article investigates weak-form efficiency of the Nigerian Stock Exchange (NSE) and its sectors for the post-global financial crisis period using autocorrelation test, Ljung–Box Q test, McLeod-Li portmanteau test and ARCH-LM test. The descriptive statistics show that the returns of NSE and its sectors are positive. The results show that (i) investors can only predict banking sector return using superior fundamental analysis of their intrinsic values; (ii) prediction of the NSE 30 and Shari’ah equities sector returns require nonlinear model and fundamental analysis and (iii) consumer goods sector and oil and gas sector may be predicted using both technical and fundamental analyses. JEL Classification: G11, 14

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