scholarly journals Does Corporate Governance Have an Effect on Performance in the European Banking Sector? Evidence from a Crisis Environment

Author(s):  
Anastasia N. Stepanova ◽  
Olga Ivantsova

2017 ◽  
Vol 1 (2) ◽  
pp. 43-49 ◽  
Author(s):  
Themistokles Lazarides

Financial performance as a phenomenon in the European banking sector is an issue of a wide debate. The paper is seeking to detect the variables that have an impact on performance. Ratios and stratification variables are used in panel data regressions and the time period of the study is from 2004 to 2013. The results show that performance (ROAA) is dependent on four categories of ratios (Asset quality, Capital ratios/risk and solvency ratios, Operations ratios, Liquidity ratios). Corporate governance system and the geographic location (political and macroeconomic factors) of the bank seem to effect significantly the factors that have an impact on performance.



2015 ◽  
Vol 5 (2) ◽  
pp. 52-70 ◽  
Author(s):  
Themistokles Lazarides ◽  
Evaggelos Drimpetas ◽  
George Kyriazopoulosr

The inactivity of banks may be the result of a number of events, such as merger & acquisition (M&A), liquidation, default-bankruptcy, etc. All these phenomena of inactivity contribute to the same result, the reform of the European banking sector and they may have the same causes. The paper will address the issue of inactivity and will try to detect its causes using econometric models. Six groups of indicators are examined: performance, size, ownership, corporate governance, capital adequacy or capital structure and loan growth. Three econometric methods (Probit, Logit, OLS) have been used to create a system that predicts inactivity. The results of the econometric models show that from the six groups of indicators, four have been found to be statistically important (performance, size, ownership, corporate governance). Two have a negative impact (ownership, corporate governance) on the probability of inactivity and two positive (performance, size). The paper’s value and innovation is that it has given a systemic approach to find indicators of inactivity and it has excluded two groups of indicators as non-statistically important (capital adequacy or capital structure and growth).



2019 ◽  
Vol 07 (01) ◽  
pp. 1975001
Author(s):  
FRANCESCA ARNABOLDI

This work discusses some of the critical aspects of bank corporate governance in the European Union. Enhancing sound corporate governance practices has become one of the major concerns in the supervisory authority’s agenda and one of the critical features to evaluate banks’ stability. The global rethinking about corporate governance rules has translated into a stronger focus on board diversity for EU banks. The existing literature and sound corporate governance practices support the view that different types of board members may bring different capabilities to their banks. Even if board diversity may add complexity to the functioning of the board, the advantages it brings are of utmost importance in the challenging environment banks are facing. This work highlights the fragmentation of the EU corporate governance rules as banks have to comply with 27 sets of different regulations and codes. This complexity should not be ignored, as member states’ specificities, legal systems, and a more general openness to diversity influence the effect reforms may have on banks’ performance and stability.



2005 ◽  
pp. 65-75 ◽  
Author(s):  
A. Murychev

The article analyzes urgent issues of the development of Russian banks. The probability of Moscow banks' regional expansion is noted. Hence the necessity for regional banks to find market niches. Competitive advantages of small and medium-sized banks as well as barriers to their activity are considered. Special attention is paid to the problems of corporate governance in banks. The results of the survey conducted by the Association of Regional Banks of Russia in summer of 2004 are analyzed.



2011 ◽  
Vol 3 (12) ◽  
pp. 313-316
Author(s):  
Dr. Bipin T Vadhar ◽  




2019 ◽  
Author(s):  
Richard Heuver ◽  
Ron Triepels


2017 ◽  
Author(s):  
Konstantinos Gkillas ◽  
Christoforos Konstantatos ◽  
François Longin ◽  
Athanasios Tsagkanos


Author(s):  
Viral V. Acharya ◽  
Tim Eisert ◽  
Christian Eufinger ◽  
Christian Hirsch

This chapter compares the recapitalizations of the Japanese banking sector in the 1990s with those in the ongoing European debt crisis. The analysis points to four main policy implications. First, recapitalizing banks by insuring or purchasing troubled assets alone is not likely to solve the problem of banks’ weak capitalization, as this measure is not able to adjust the extent of the recapitalization to the banks’ specific needs. Second, the amount of the recapitalization should be based on actual capital shortages and not risk-weighted assets to avoid banks decreasing their loan supply. Third, banks should face restrictions regarding the amount of dividends they are allowed to pay out. Finally, banks must be induced to clean up their balance sheets and reduce the amount of bad (non-performing) loans to rebuild confidence in the European banking system.



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