scholarly journals Financial system development progress in Western Balkans

2017 ◽  
Vol 12 (2) ◽  
pp. 7-19 ◽  
Author(s):  
Emira Kozarević ◽  
Nedžad Polić ◽  
Amela Perić
Keyword(s):  
Ownership Structure ◽  
System Development ◽  
Banking System ◽  
Financial System ◽  
Status Quo ◽  
Capital Adequacy ◽  
Western Balkans ◽  
Financial Systems ◽  
Developing Regions ◽  
Available Information

Financial system supports economic growth, while its regulatory framework provides stability for investors. Develo-ping countries with bank-oriented financial systems are not attractive to investors, so prolonged status quo leads to economic deterioration. This is particularly the case with some of the most underdeveloped areas in Europe: Western Balkans. It is essential the developing countries in this region consider steps towards financial liberalization, which will help open the borders for capital flows and attract new investments. The main goal of this paper is to review and present the available information related to the banking system development in Western Balkans in terms of ownership structure, capital adequacy, loan and asset performance, return on investment and liquidity. These indicators should provide a clearer picture of the current financial systems in Western Balkans economies and their development progress – useful for comparison with other developing regions and financial transformation and liberalization efforts.

Banking Outreach: A Geographic and Demographic Analysis for Countries of the Gulf Cooperation Council

2020 ◽  
pp. 239490152097745
Author(s):  
Vibha Bhandari ◽  
Vikram Mohite
Keyword(s):  
System Development ◽  
Banking System ◽  
Financial System ◽  
Vital Role ◽  
Demographic Analysis ◽  
Financial Systems ◽  
Bank Branches ◽  
Demographic Indicators ◽  
The People ◽  
Real Growth

Financial system development and growth share a two-way relationship. A developed financial system enterprises real growth and a growing economy’s demand leads to the development of the financial sector. In order to realize the goals of development, it is important that the financial system should not only be developed but also be inclusive. Banking system/institutions of countries have played a vital role in promoting and establishing financial systems to meet the requirements of the majority of people. Improved access to banks results in financial inclusion and sustainable development. Globally, the country governments have made several policy decisions and adopted regulations to ensure that banks reach to majority of the people. This article aims to analyze the banking outreach for the countries of GCC for a period of seven years from 2010 to 2017. This analysis will be based on geographic and demographic indicators of the outreach of banks’ physical outlets in the form of bank branches and its ATMs. This analysis will help to identify the countries of GCC with easier geographic and demographic access.

Critical Analysis of the Zero Risk Weight Privilege for European Sovereign Debt in Light of Art. 124 TFEU

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Patrick Hauser
Keyword(s):  
Financial Institutions ◽  
Sovereign Debt ◽  
Banking System ◽  
Financial System ◽  
Significant Risk ◽  
Capital Adequacy ◽  
Individual Member ◽  
Member States ◽  
The Individual ◽  
Credit Institutions

AbstractThe zero risk weight privilege for European sovereign debt in the current capital adequacy requirements for credit institutions incentivises credit institutions to acquire and hold sovereign debt. However, it also poses a significant risk to the stability of the banking system and thus the financial system as a whole. It is argued that this privilege should not only be abolished due to the risk it entails but that it is also non conformant with EU primary law. Art. 124 TFEU prohibits privileged access of the EU and Member States' public sector to financial institutions except for prudential considerations. The protective purpose of Art. 124 TFEU to ensure sound budgetary policies by subjecting public borrowing to the same rules as borrowing by other market participants is thwarted by the uniform zero risk weight privilege. Further, as this privilege does not take into account the varying creditworthiness of the individual Member States it does not promote the soundness of financial institutions so as to strengthen the soundness of the financial system as whole, but rather endangers systemic stability. The zero risk weight privilege is therefore not based on prudential considerations and hence violates Art. 124 TFEU.

Testing the interrelatedness of banking stability measures

2014 ◽  
Vol 6 (1) ◽  
pp. 25-45 ◽  
Author(s):  
Vighneswara Swamy
Keyword(s):  
Emerging Economies ◽  
Financial Stability ◽  
Banking System ◽  
Financial System ◽  
Capital Adequacy ◽  
System Stability ◽  
Var Model ◽  
Content Type ◽  
Banking Stability ◽  
Asset Quality

Purpose – This study aims to investigate the inter-relatedness and the dynamics of banking stability measures and offers answers for some of the related issues such as does financial stability require the soundness of banking institutions, the stability of markets, the absence of turbulence and low volatility? and to what extent the soundness of banking sector in the case of emerging economies can help financial system stability. Design/methodology/approach – This study investigates banking stability by structuring a recursive micro panel vector auto regressive (VAR) model and corroborates the significance of the interrelatedness of the bank-specific variables such as liquidity, asset quality, capital adequacy and profitability by employing a robust panel data drawn from 56 leading banks for a period of 12 years. Findings – A significant contribution of this study is in establishing that liquidity in the banking-dominated financial system is reciprocally related with asset quality, capital adequacy, and profitability of the banking system and in effectively forecasting banking stability employing micro panel recursive VAR model. Research limitations/implications – The study could be further broadened by employing a macro and structural VAR modelling to forecast banking stability. Practical implications – This paper is one among the evolving body of literature that underscores the significant relationship between banking system resilience and financial stability in the context of emerging economies dominated with banking systems. Further, the forecast model is able to capture the dynamics of banking stability with greater and appreciable accuracy. Originality/value – The uniqueness of the study is in modelling banking stability measures in the context of banking-dominated emerging economy financial systems by employing micro panel recursive VAR model by deriving data from 58 leading banks for the period of 12 years from 1996 to 2009 and in offering insights in understanding financial stability with comprehensive literature review.

scholarly journals Banking sector reforms in Kenya: Progress and challenges

2012 ◽  
Vol 10 (1) ◽  
pp. 88-96
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Financial Systems ◽  
African Countries ◽  
High Interest Rate ◽  
The Past

This paper gives an overview of the banking sector in Kenya; it highlights the reforms since the country‟s independence in 1963; it tracks the growth of the banking sector in response to the reforms implemented over the past four decades; and finally, it highlights the challenges facing the banking sector in Kenya. The country‟s banking sector consists of more than 40 commercial banks, with the Central Bank of Kenya, which is the country‟s central bank, at the apex. Since the 1980s, the Kenyan government has implemented a number of banking sector reforms – in order to safeguard and improve the banking sector. The response to these reforms by the banking sector has been varied. As a result of these reforms, there has been a shift in the dominance from the State-owned banks to the private commercial banks. There has also been an improvement in the Central Bank‟s oversight of the financial institutions, and an enforcement of the banks‟ capital-adequacy requirements. By the standards of African countries, Kenya currently has one of the most developed banking systems in Africa. The country has enjoyed a substantial bank-based financial sector development over the years, and its institutional framework has also grown stronger. However, like many other developing countries‟ financial systems, the Kenyan banking system still faces wide-ranging challenges, such as high interest rate spreads and financial inclusion challenges

scholarly journals Methodological Aspects of the Financial Stability of Iraq’s Banking System

2020 ◽  
pp. 208-218
Author(s):  
Haider H. Dipheal Shubbar ◽  
Keyword(s):  
Central Bank ◽  
Financial Distress ◽  
Financial Stability ◽  
Banking Sector ◽  
System Development ◽  
Banking System ◽  
Capital Adequacy ◽  
Financial Monitoring ◽  
High Level ◽  
Methodological Aspects

This article discusses the methodology the Central Bank of Iraq developed to assess the financial stability of commercial banks. This topic is relevant because, in modern economic conditions, the Central Bank of Iraq is forced to tighten requirements to credit institutions. Banks use not only their own funds, but also the funds of the population, legal entities, so they must be reliable and stable. Financial stability directly characterises the reliability of banks, so it must be strictly controlled. The Central Bank of Iraq has created its own methodology for assessing the financial stability of the banking sector. Its use should improve the quality of the created banking system development strategies and the financial monitoring of these strategies’ implementation. The Iraqi banking sector has a high level of capital adequacy, which helps to reduce the likelihood of financial distress in it.

scholarly journals Challenges and Implementation of Financial Institutions Development Policy in Laos on 2016-2020

2017 ◽  
Vol 11 (1) ◽  
pp. 115
Author(s):  
Maliny Sourigna ◽  
Shuzhen Zhu ◽  
Syed Ahtsham Ali
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Capital Market ◽  
Development Policy ◽  
System Development ◽  
Listed Company ◽  
Lao Pdr ◽  
Banking System ◽  
Financial System ◽  
Implementation Challenges

This study focuses on the financial system development policy in 5 years of the Lao PDR which referring to "Lao strategic financial system development plan 2016-2025 and vision to 2030". The main policies include the upgrading and implementation of the supervision system, innovation in financial infrastructures with effective risk management, develop and stabilize banking system and non-banking financial institutions. Increasing number of the listed company and financial products creates diversification in the capital market. From the synthesizer environment and current situation of financial development in the country, the policy implementation challenges are analyzed from empirical environment of financial system in the country. Additionally, other challenges on supervision tools, under capitalization, less product types, small size of capital market, and risk management challenge which came from unconnected information system and uncompleted of related institutions are also discussed. Moreover, effective policy to address the challenges and the missing points for further policies are also discussed.

scholarly journals Can Islamic banking revive Somalia’s ailing economy?

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1709-1716
Author(s):  
Mohammed Hersi Warsame ◽  
Yousif Abdelbagi Abdalla ◽  
Alhashmi Aboubaker Lasyoud
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Banking System ◽  
Financial System ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Sampling Techniques ◽  
Law And Order ◽  
Financial Systems ◽  
Purposive Sampling

The study aims to evaluate the Islamic banking prospects in Somalia and the role it can play in reviving the country’s ailing economy. Somalis were recruited through purposive sampling techniques. Structural equation modeling (SEM) has been adopted to analyze the data collected using SmartPLS. The findings have shown a negative and insignificant impact of absence of a functioning financial system, lack of funding and expertise, and effect of bank absence on businesses. Financial and political infrastructure significantly affected the Islamic banking system of Somalia. Law and order measures show a significant impact on suitability of banking and financial systems of Somalia. Sharia compliant finance shows a positive but insignificant impact on Islamic banking in Somalia. Standalone new banks in Somalia have fewer chances of success due to the absence of personnel with the necessary skills and qualifications.

scholarly journals Transformation of the Serbian banking system: Twenty years later

2020 ◽  
Vol 22 (2) ◽  
pp. 15-29
Author(s):  
Isidora Ljumović ◽  
Marija Antonijević
Keyword(s):  
Market Share ◽  
Ownership Structure ◽  
Banking Sector ◽  
Foreign Capital ◽  
Banking System ◽  
Foreign Ownership ◽  
Capital Adequacy

The aim of this paper is to present the changes that have occurred in the banking sector of Serbia after the beginning of its transformation, with special emphasis to the last decade of development. Twenty years after the beginning of the transformation, the fundamental features of the system are consolidation, foreign ownership, increases of all banking aggregates measured by absolute values, primarily assets, capital, deposits and loans. Also, a trend of growth in profitability, liquidity and capital adequacy of the sector was recorded. Along with the decrease in the number of banks, the ownership structure changed to predominantly foreign capital, but the degree of concentration did not change drastically. However, the share of the first 5 banks in total assets was constantly above 50%, which indicates the fact that the banking sector of Serbia is extremely fragmented, because there is a significant number of banks with a market share below 2%.

Financial Safety Indicators under Financial Crises and their Impact on Banking Finance: An Applied Study in Iraqi Banks

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Mazen Dawood Salman ◽  
Amr Hisham Mohammed ◽  
Hakeem Hammood Flayyih
Keyword(s):  
Central Bank ◽  
Banking System ◽  
International Standards ◽  
Capital Adequacy ◽  
Financial Systems ◽  
Applied Study ◽  
Global Standards ◽  
Private Banks ◽  
The Government ◽  
The One

The ability to monitor the integrity of the financial sector assumes that there are valid indicators for detecting the integrity and stability of financial systems, including partial indicators and indicators of macro-prudence; and pressure tests to measure the resilience of financial systems to shocks. The research aims to review the most important financial safety indicators applied by the Central Bank of Iraq, focusing on applying some indicators to both the banking system on the one hand and a sample of Iraqi banks. The research reached several conclusions, the most important of which is the commitment of the Central Bank of Iraq to international standards such as Basel II, which requires some Iraqi banks to develop their banking methods to pursue banking developments and global standards. Capital adequacy ratios in the Iraqi banking system as a whole and private banks, unlike the government, have also increased, although the latter has achieved relatively high and acceptable levels of more than 12% according to this standard.

scholarly journals The evolution of bank-based financial system in the United Kingdom

2013 ◽  
Vol 11 (1) ◽  
pp. 483-492
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Financial Sector ◽  
Capital Adequacy ◽  
Foreign Banks ◽  
The Past ◽  
The United Kingdom ◽  
Bank Of England ◽  
Contagion Risk

This paper gives an overview of the banking sector in the U.K.; it highlights the reforms since the second half of the 20th Century; it tracks the growth of the banking sector in response to the reforms implemented over the past seven decades; and finally, it highlights the challenges facing the banking sector in the U.K. The country’s banking sector consists of more than 340 commercial banks, with the Bank of England, which is the economy’s central bank, at the apex. Since the 1970s, the U.K. government has implemented a number of banking sector reforms – in order to safeguard and improve the banking sector. The response to these reforms, by the banking sector, has been varied. As a result of these reforms, there has been an increase in the activity of foreign banks as the financial sector was regulated. There has also been an improvement in the Central Bank’s oversight of the financial institutions, and an enforcement of the banks’ capital-adequacy requirements. By any standard, the U.K. currently has one of the most developed banking systems in world. The country has enjoyed a substantial bank-based financial sector development over the years, and its institutional framework has also grown stronger. However, like any other financial system, the U.K. banking system still faces wide-ranging challenges, such as less than adequate disclosure standards, contagion risk from the euro zone, squeezed interest margin and uncertainties caused by changes in regulatory regimes.

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