scholarly journals Relative Contribution of Public Sector, Banking Sector, and Non-Bank Financial Sector Claims in U.S. Global Banks' Exposure to Foreign Counterparties' Default Risks

2018 ◽  
Author(s):  
Ibrahim Niankara ◽  
Hassan Ismail
Keyword(s):  
Public Sector ◽  
Fixed Effects ◽  
Banking Sector ◽  
Financial Sector ◽  
Country Risk ◽  
Risk Exposure ◽  
Fiscal Year ◽  
Cross Border ◽  
Foreign Office ◽  
Global Banks

This paper relies on accounting-based measures of country risk to investigate U.S. global banks' exposure to foreign country risk over the 2017 fiscal year as measured by the sum of cross-border risk, foreign office risk, and derivative risk claims. We achieve this using panel linear modeling methods with country level heterogeneity and time fixed effects, along with a constructed panel data of 284 observations on 71 countries distributed across 6 world regional blocks, and observed over 4 consecutive quarters starting from 4th quarter 2016 and ending with 3rd quarter 2017. The results show that on average, over the four quarters, a 1% increase in foreign banking sector's claims significantly increases U.S. global banks cross border risk exposure by 0.34%, while reducing derivative risk exposure by 0.22%, but have no significant impact on foreign office risk exposure. Similar results are observed with public sector claims which significantly increase banks' exposure to cross border risk by 0.21%, while reducing derivative risk exposure by 0.19%. Conversely however, non-bank financial sector claims are found to have no significant affect on cross-border risk exposure, but significantly reduce foreign office risk exposure by 0.09%, while increasing derivative risk exposure by 0.06%. These results indicate the presence of sectoral heterogeneities in U.S. banks' exposure to foreign counterparties' risk, and also that overall, over the course of 2017 the level of U.S. global banks' cross-border risk exposure increased, while their level of derivative risk exposure decreased, and the level of foreign office risk exposure remained relatively unchanged.

Analysis of Banking Industry by Using Camel Model with Special Emphasis on Selected Indian Public Sector Banks

2016 ◽  
Vol 11 (02) ◽  
Author(s):  
Mamta Shah ◽  
Mahua Dutta
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Sector ◽  
High Rate ◽  
Public Sector Banks ◽  
The Face ◽  
Growing Economy ◽  
Domestic Inflation ◽  
Model Approach

India is among the fastest growing economy in the world. The growth of any economy is largely depending on its financial sector. One of the components of financial sector is the banking sector. The growth of banking industry plays a major role in the development of that economy. If we go to past we can see that over the couple of years the Indian Banking sector has shown a high rate of buoyancy in the face of high domestic inflation, rupee depreciation, and due to fiscal uncertainty. Even our central bank has adopted various measures to stimulate growth and overall development of the sector. The present paper discuss the analysis of banking industry specially our public sector banks by using CAMEL model approach.

scholarly journals Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs) in the Indian Banking Sector

2017 ◽  
Vol 12 (2) ◽  
pp. 125-135
Author(s):  
Laila Memdani
Keyword(s):  
Public Sector ◽  
Fixed Effects ◽  
Banking Sector ◽  
Foreign Banks ◽  
Fixed Effects Model ◽  
Ownership Structures ◽  
Public Sector Banks ◽  
Reserve Bank ◽  
Private Banks ◽  
Econometric Technique

Abstract The main objective of the paper is to find out the determinants of NPAs in the Indian Banking sector and to study if these determinants vary across the three different ownership structures viz., public sector banks (PSBs), private banks (PBs) and foreign banks (FBs), of banks in India. The panel data for all the banks from 2005 to 2014 is collected from the official website of Reserve Bank of India (RBI), the Central Bank of the country. The econometric technique of Fixed Effects model and Random Effects model is used for the purpose. The results reveal that Macro economic factors, like log of percapita income (LPCY) and Inflation (INFN), are significantly affecting NPLs in Public Sector Banks (PSBs). In case of private banks (PBs) LPCY is highly significant while bank specific variables like size and total loans to total loans of the banking sector (TLTLBS) are significant at 10% level. For FBs none of the variables were significant.

scholarly journals Assesment of the Interest Rates in the Serbian Banking Sector

2014 ◽  
Vol 3 (2) ◽  
pp. 21-35
Author(s):  
Lidija Barjaktarović ◽  
Maja Dimić ◽  
Dejan Ječmenica
Keyword(s):  
Interest Rates ◽  
Risk Premium ◽  
Banking Sector ◽  
Pearson Correlation ◽  
Country Risk ◽  
Return On Assets ◽  
Cross Border ◽  
Strong Relation ◽  
National Bank ◽  
Country Risk Premium

Abstract Lending interest rates (IR) in the Serbian market are generally viewed as high. In accordance with the official NBS (National bank of Serbia) data for 2010: lending (IR) was 10.4% p.a., deposit IR was 4.2% p.a., and spread was 6.3% p.a. At the same time, IR on cross-border loans was 3.7% p.a. It means that the use of cross-border loans was a better solution for companies which were in position to take them. The indicator of IR spread in Serbia got worse and came down to 106th position (it used to be ranked 90th in 2009; WEF). If we analyse the structure of IR spread, we can notice that there is room for decreasing the level of active IR in the area of country risk premium and funding spread. Pearson Correlation shows that IR has strong relation with return on assets and volume of collected deposits i.e. profit margin per product.

scholarly journals Foreign Direct Investment and Consumer Finance Companies: What Are the Determinants?

2020 ◽  
Author(s):  
Consuela-Elena Popescu
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Union Member ◽  
Banking Sector ◽  
Financial Sector ◽  
Consumer Finance ◽  
Member States ◽  
European Union Member States

In the context of the globalization of the financial sector, notably of the non-banking sector within the European Union member states of the last decades, the assets of the non-bank sector have increased in the last years considerably. Taking into account that the regulatory requirements for consumer finance companies are more permissive than for banking financial institutions and that the financials of the sector are not available for almost half of the sector this paper tries to explain the main determinants of foreign direct investments in consumer finance companies for a panel of European Union member states over the period 2006-2013. My approach is using the panel methodology but testing different panel specifications in order to choose the model that will better explain FDI – fixed effects. Findings show that the percentage of people with internet connection, the quality of the regulatory environment, the trade to GDP, the cost of business start-up procedures, the time required to start a business, the government final spending and the labour costs are the major determinants of foreign investments in consumer finance companies. Keywords: consumer finance companies, foreign direct investment, non-bank financial sector, multinationals, panel data.

scholarly journals Banking Sector Competition and Financial Development in Sub-Saharan Africa

2020 ◽  
Vol 5 (3) ◽  
pp. 58-85
Author(s):  
Charles K. Ricky-Okine ◽  
Twum Amankwaa ◽  
Emmanuel Anane
Keyword(s):  
Financial Development ◽  
Fixed Effects ◽  
Banking Sector ◽  
Financial Sector ◽  
Sub Saharan Africa ◽  
Annual Data ◽  
Development Bank ◽  
Full Sample ◽  
Macroeconomic Variables ◽  
Sub Saharan

The study sort to establishing a relationship between banking sector competition and financial development in subSaharan n Africa. The study further disaggregated the data used into Francophone and Anglophone countries, and these were examined separated and compared. Using an annual data on banks across 37 countries in Sub-Saharan Africa spanning the period 2001-2016 and employing the Fixed Effects estimation technique, the study revealed that there is a positive and significant relationship between financial development (FDCredit) and competition (CR3) for the full sample and the anglophone samples. The study further revealed that banking sector stability is essential for the financial development of both Anglophone and francophone countries within the sub-region. Macroeconomic variables did not have any impact on financial development generally except in francophone countries where exchange rates were found to have an impact on financial development. Bank-level variables such as ZSCORE, non-performing loans, profitability, liquidity and capitalization, on the hand had little impact in Anglophone countries on financial development compared to francophone countries. The study found that larger banks contribute positively to the development of the financial sector and banks tend to be bigger in Anglophone countries, and their banking sector is also more competitive than the francophone countries for the period used. Less emphasis should be placed on bank-level variables as these do not have significant impacts on the financial sector for Anglophone countries. Francophone countries should, however, control bank-level variables to ensure that they achieve greater financial development. Citation: Ricky-Okine, C. K., Amankwaa, T.and Anane, E.Banking Sector Competition and Financial Development in Sub-Saharan Africa,2020; 5(3): 58-85. Received: July 18, 2020Accepted: September 30, 2020

scholarly journals Banking Sector Reforms: Policy Implications and Fresh Outlook

2011 ◽  
Vol 2 (2) ◽  
pp. 55-64
Author(s):  
R. K. Uppal
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Policy Implications ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Global Challenges ◽  
The Future ◽  
Global Banks

Various reform measures introduced in India have indeed strengthened the Indian banking system in preparation for the fresh global challenges ahead. The present paper reviews the banking sector reforms policy, crucial issues and agenda for the future. On the basis of certain parameters, like productivity, profitability and NPAs’ management, the paper concludes that foreign banks and new private sector banks are much better in performance as compared to our nationalized banks in the post-banking sector reforms period. The paper ends with the future agenda for the Indian banking industry, particularly for public sector banks to make them efficient and strong, to compete with the global banks.

Financial penalties and banks’ systemic risk

2018 ◽  
Vol 19 (2) ◽  
pp. 154-173 ◽  
Author(s):  
Hannes Köster ◽  
Matthias Pelster
Keyword(s):  
Systemic Risk ◽  
Fixed Effects ◽  
Banking Sector ◽  
Risk Exposure ◽  
Content Type ◽  
Upper Management ◽  
Positive Effects ◽  
External Monitoring ◽  
The Stability ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of financial penalties on the stability of the banking sector. Design/methodology/approach A unique database of 671 financial penalties imposed on 68 international listed banks between 2007 and 2014 and a fixed-effects panel data approach were used. Findings The results show that financial penalties increase banks’ systemic risk exposure but do not significantly affect banks’ contribution to systemic risk. Additionally, the link between financial penalties and systemic risk exposure is weaker in regulatory and supervisory systems with more prompt corrective power among national authorities. By contrast, supervisory authorities’ stronger power to declare insolvency and a greater external monitoring culture exacerbate the positive effects of financial penalties on systemic risk exposure. Practical implications The punishment of misconduct should correct the social harm and prevent future misconduct while ensuring the banking system’s stability. Therefore, authorities should punish misconduct by implementing penalties against the financial institutions at a specific amount that offsets the damages of misconduct but does not threaten systemic stability. Penalties against institutions may be complemented by financial penalties against upper management to induce a more responsible culture in banks. Originality/value This paper is the first to study the effect of financial penalties on the stability of the financial system. The results contribute to the ongoing debate on the appropriateness of financial penalties and address the question of whether bank regulators reduce or contribute to banks’ systemic risk.

Service Quality Perception towards E-CRM Practices among Customers of Private and Public Sector Banks of Rajasthan Using SERVQUAL Method

2018 ◽  
Vol 7 (3) ◽  
pp. 22
Author(s):  
Neeti Kasliwal ◽  
Jagriti Singh
Keyword(s):  
Public Sector ◽  
Service Quality ◽  
Banking Sector ◽  
Sampling Technique ◽  
Vital Role ◽  
Public Sector Banks ◽  
Significant Difference ◽  
Private And Public ◽  
Score Method ◽  
Public Banks

Banking sector is growing rapidly and playing a vital role in the economic development of the nation. Both private and public sector banks are giving more priority to service quality to satisfy their customers. For this, banks are now emphasizing on E-CRM practices to carry out transactions and communicate with their customers. The purpose of this research is to assess the service quality among private and public banks in Rajasthan. Purposive sampling technique has been employed to collect the data from three private banks and three banks from public. To analyze the data, descriptive statistics, Mean score method and t test have been used. Results indicates that there is a significant difference in consumer’s perception of service quality dimensions related to E-CRM practices provided by selected private and public sector banks of Rajasthan..The findings of this research will help policy makers of banking sector to set customer oriented policies.

Impact of Eustress on Work-life Balance: An Analysis on Public Sector Bank Employees in South India

2020 ◽  
Vol 16 (3) ◽  
pp. 196-209
Author(s):  
A. C. Pavithra ◽  
V. J. Sivakumar
Keyword(s):  
Public Sector ◽  
South India ◽  
Banking Sector ◽  
Work Life ◽  
Mediating Effect ◽  
Work Life Balance ◽  
Life Balance ◽  
Psychological Conditions ◽  
Public Sector Banks ◽  
Organisational Factors

The positive psychological response to a stressor, by the occurrence of certain psychological conditions, is known as eustress. Many psychological studies suggest that the eustress can aid the person to stay motivated and achieve the goal without any psychological draining. In the present study, mediating effect of eustress on personal and organisational factors of public sector banks’ employees is investigated. Nearly 600 respondents from different banks in South India were selected randomly and the data are collected through the questionnaires. The collected data were used to analyse the formulated hypothesis. The research establishes that the relationship between individual and organisational factors and work-life balance is positive and gets enhanced and strengthened by eustress in the public banking sector.

Analysis of Financial Performance of Public Sector Banks in India: CAMEL

2020 ◽  
pp. 097674792096686
Author(s):  
Yudhvir Singh ◽  
Ram Milan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Positive Impact ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Factors Affecting ◽  
Public Sector Banks ◽  
The Government ◽  
And Performance ◽  
Asset Quality

Public sector banks have been merged by the government in the last few years. This is the rationale behind conducting this study. The purpose of this article is to determine the factors affecting the performance of public sector banks in India and the interrelationship between bank-specific determinants and performance of public sector banks. In this article, we shall analyse the financial data of all the public sector commercial banks for a period spread across 11 years (2009–2019); Capital adequacy, Assets quality, Management efficiency, Earning, and Liquidity (CAMEL) has been used as a performance determinant; system generalised method of moments (GMM) analysis has been used to find the effect of determinants on the performance measurement of public sector banks; and CCA (canonical correlation analysis) has been used to find the interrelationship between the bank-specific determinants and the performance of public sector banks. The finding has important implications in terms of performance in the banking sector. Certain limitations of this study are: It is based on secondary data. The study only covers the financial aspects and not the non-financial aspects. It is found that the asset quality is negatively related with performance of public sector banks. Liquidity and inflation are inversely related to performance of public sector banks in India. Capital adequacy is positively related with banks’ performance, but inversely related with banks’ interest margin. GDP growth has a significant positive impact on banks’ performance, but inversely related with banks’ interest income. Inflation rate is inversely related with banks’ performance. Banking sector reforms are insignificantly related with banks’ performance.

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