scholarly journals Post-crisis trends in household credit market behavior: evidence from Hungary (Literature review)

2019 ◽  
Vol 14 (3) ◽  
pp. 162-174 ◽  
Author(s):  
Judit Sági ◽  
Csaba Lentner
Keyword(s):  
Financial Literacy ◽  
Banking Sector ◽  
Household Saving ◽  
Preventive Actions ◽  
Regulatory Bodies ◽  
Household Credit ◽  
Regulatory Measures ◽  
The 2008 Financial Crisis ◽  
The Government ◽  
Financial Awareness

In response to a sharp rise in household credit repayment risk after the 2008 crisis, the banking sector was consolidated, borrowing conditions were tightened and the regulatory authorities had to improve the financial literacy of population. The study evaluates the effectiveness of regulatory measures to prevent excessive indebtedness, and analyzes the results of the latest survey of population financial literacy in Hungary after the 2008 financial crisis. The results confirm the scientific studies of different economists and scholars who state that the financial awareness is closely related to household saving and borrowing patterns. The outcomes of the analysis reveal the risks associated with the lack of financial literacy in Hungary. In fact, the financial awareness of households over the past years has not improved significantly either in the wake of losses suffered on FX-based loans, or as a result of the preventive actions undertaken by the government regulatory bodies.

scholarly journals Do the Attributes of Audit Committee Explain Non-Performing Loans? Evidence from an Emerging Economy

2021 ◽  
Vol 16 (3) ◽  
pp. 327-357
Author(s):  
Arifa Akter ◽  
◽  
Mohammad Kamal Hossain ◽  
Mohammad Jahangir Alam ◽  
Md. Shajul Islam ◽  
...  
Keyword(s):  
Panel Data ◽  
Financial Literacy ◽  
Audit Committee ◽  
Banking Sector ◽  
The Other ◽  
Committee Chairman ◽  
Data Set ◽  
Robust Standard Error ◽  
Regulatory Bodies

This study examined whether various attributes of the audit committee of listed banks in Bangladesh explain the level of non-performing loans (NPLs). This study used a panel data set comprising all 30 listed banks with 250 bank-year observations for the period 2013–2017. It employed the random-effects GLS regression model with cluster robust standard error and AR (1) disturbance to examine the effect of several audit committee attributes on NPLs. We found that holding audit committee meetings frequently and a higher number of independent members in the audit committee facilitate to reduce NPLs. We, however, find no explicit evidence that the other attributes of the audit committee examined (audit committee size, financial experience and financial literacy of the audit committee members, professional qualifications of the audit committee Chairman) contribute in reducing NPLs. The findings will be useful for policymakers of the banking sector in Bangladesh and the relevant regulatory bodies in enabling them to understand the role of the various attributes of the audit committee in the incidence of NPLs. Keywords: attributes, audit committee, non-performing loans (NPLs), listed banks, Bangladesh

Banking Sector Regulation in India: Overview, Challenges and Way Forward

2018 ◽  
Vol 64 (3) ◽  
pp. 473-486 ◽  
Author(s):  
Geethanjali Nataraj ◽  
Ashwani
Keyword(s):  
Best Practices ◽  
Banking Sector ◽  
Banking Industry ◽  
Checks And Balances ◽  
Private Banks ◽  
Cast Doubt ◽  
Regulatory Bodies ◽  
Regulatory Measures ◽  
Indian Banks

The Indian banking industry is undergoing the rollout of innovative banking models in the form of more promotion to private banks for attaining the productivity and efficiency. However, increase in the quantity of non-performing assets, poor credit growth and low profitability of Indian banks cast doubt about the industry’s resilience towards maintaining the country’s economic growth trajectory. While taking lessons from global regulatory bodies and keeping in view the domestic problem of the Indian banking industry, the dire need of the hour is to maintain proper checks and balances on banking transactions. The article goes on to sum up the various measures initiated by government to deal with banking-sector challenges and how an attempt is made to adapt regulatory measures from global best practices which could help the banking sector in India become more robust, efficient and effective in preventing all fraudulent transactions and enhancing the quality of its assets.

scholarly journals Factors Identification of Banking Penetration and Financial Empowerment: Application of Confirmatory Factor Analysis

2019 ◽  
Vol 8 (2) ◽  
pp. 108-113
Author(s):  
R. Mohammed Abubakkar Siddique ◽  
M. Selvakumar
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Customer Behavior ◽  
Rural People ◽  
The People ◽  
Reserve Bank ◽  
Confirmatory Factor ◽  
The Government ◽  
Financial Awareness ◽  
Reserve Bank Of India

Banking plays a very important role in the development of the economy. In order to develop the rural areas various schemes were introduced by the government of India and Reserve bank of India. The people must make use of those schemes. Banking penetration must be followed by the customer behavior towards the banking products and services. This customer behavior leads to the financial empowerment of the people which enhances the financial planning, financial awareness and financial literacy. This paper studies about the identification of the factors assigned for the variables of banking penetration, customer behavior and financial empowerment of the rural people.

scholarly journals Financial Literacy. Who, whom and what are they Training for? Comparative Analysis 2016–2020

2020 ◽  
Vol 65 (4) ◽  
pp. 554-583
Author(s):  
Erzsébet Németh ◽  
Bálint Tamás Vargha ◽  
Kinga Domokos
Keyword(s):  
Public Education ◽  
Financial Literacy ◽  
Core Curriculum ◽  
Financial Education ◽  
Social Background ◽  
Vulnerable Groups ◽  
The Government ◽  
Education And Development ◽  
Financial Awareness ◽  
Compulsory Subject

The research assessed whether progress has been made in the education and development of financial awareness in Hungary since 2016. We reviewed the changes in the state’s role in the development of financial literacy, and in a questionnaire survey we examined what kind of organizations, who and in what topics are involved in trainings outside the public education. It was found that between 2016 and 2020, there was an increasing focus on developing the financial literacy, while the vast majority of the trainings continues to target the most easily reachable school age group. The National Core Curriculum identified economic and financial education as a goal for schools. However, outside of vocational high schools, such knowledge is not taught as a compulsory subject. In 2017, the Government adopted a strategy to improve the financial awareness of the population, and the first accredited financial literacy textbooks were published. The results of non-public education organisations show that the number of training programs and their participants has tripled. The average duration of trainings has become longer, multi-day trainings mainly for adults appeared. Knowledge transfer continued to focus on individual frugality and financial awareness, financial self-knowledge, attitude, and behaviour. The education of investment and entrepreneurship knowledge still isn’t a priority. Most of the trainings do not take into account the income situation and social background of the target groups and do not pay attention to the development of financially vulnerable groups.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

Cyber crimes in the banking sector: Case study of Vietnam

2020 ◽  
Vol 6 (05) ◽  
Author(s):  
LE Thanh Tam ◽  
Nguyen Minh Chau ◽  
Pham Ngoc Mai ◽  
Ngo Ha Phuong ◽  
Vu Khanh Huyen Tran
Keyword(s):  
Financial Literacy ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Legal Framework ◽  
Economic Sectors ◽  
Technological Revolution ◽  
Survey Results ◽  
Cyber Crimes

The technological revolution 4.0 brings great opportunities, but also cybercrimes to economic sectors, especially to banks. Using secondary data and survey results of 305 bank clients, the main findings of this paper are: (i) there are several types of cybercrimes in the banking sector; (ii) Vietnam is one of the top countries worldwide having hackers and being attacked by hackers, especially the banking sector. Three most common attacks are skimming, hacking and phishing. Number of cybercrime attacks in Vietnam are increasing rapidly over years; (iii) Vietnamese customers are very vulnerable to cybercrime in banking, as more than 58% seem to hear about cybercrimes, and how banks provide services to let them know about their transactions. However, more than 50% do not have any deep knowledge or any measures for preventing cybercrime; (iii) Customers believe in banks, but do not think that banks can deal with cybercrime issues well. They still feel traditional transactions are more secure than e-transactions; (iv) the reasons for high cybercrimes come from commercial banks (low management and human capacity), supporting environment (inadequate), legal framework (not yet strong and strict enough on cybercrimes), and clients (low level of financial literacy). Therefore, several solutions should be carried out, from all stakeholders, for improving the cybersecurity in Vietnamese banks. 

A comparative analysis of financial awareness of the Northwestern Federal District population

2020 ◽  
Vol 18 (3) ◽  
pp. 474-491
Author(s):  
G.V. Belekhova
Keyword(s):  
Comparative Analysis ◽  
Financial Literacy ◽  
Federal District ◽  
Population Based ◽  
District Population ◽  
The Family ◽  
The Russian Federation ◽  
Ministry Of Finance ◽  
Financial Awareness ◽  
Competence System

Subject This article deals with the issues of determining the level of financial literacy, identifying problems, and comparing the financial literacy rates of the population of different areas. Objectives The article aims to identify territorial differences in the overall level of financial literacy of the population of the Northwestern Federal District regions and study the prevalence of problems related to the family budget, using financial products, and risk. Methods For the study, we used a sociological survey and an original methodology for indexing the level of financial literacy of the population based on the methodology of the Organization for Economic Cooperation and Development, taking into account the adults' financial competence system proposed by the Ministry of Finance of the Russian Federation. Results The article determines the level of financial literacy of the Northwestern Federal District population and identifies similar problems for the District's regions. Conclusions A comparative analysis of the components of financial literacy of the four regions reveals the strengths and weaknesses of each of them. This will help adjust financial literacy programmes being implemented in some regions and developed in others.

Volatility Transmission in Indian Banking Sector

2019 ◽  
Vol 118 (7) ◽  
pp. 161-165
Author(s):  
Cyano Prem ◽  
Dr M. Babu ◽  
C. Hariharan ◽  
R. Muneeswaran
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Bad News ◽  
Private Bank ◽  
Volatility Transmission ◽  
The People ◽  
New Information ◽  
High Volatility ◽  
The Government ◽  
Awareness Programme

Any new information about the economy is transmitted fast and it may influence the financial markets, positively or negatively. The present study used GARCH (1, 1) and EGARCH models, to investigate the volatility of Indian banking sectors indices, namely, Nifty PSU Index and Nifty Private Bank Index of NSE India Ltd. The result of the study confirmed that the high volatility was found in both the bank indices. At the same time, negative information about Indian economics did affect the PSU and Private Bank Sector indices during the study period. Finally, the study concluded that bad news travels fast and it increased volatility more than good. Hence the Government should give more information and awareness programme to the people before the implementation of any economic policy.

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.

scholarly journals Determinants of Insurance Penetration in West African Countries: A Panel Auto Regressive Distributed Lag Approach

2021 ◽  
Vol 14 (8) ◽  
pp. 350
Author(s):  
Odunayo Olarewaju ◽  
Thabiso Msomi
Keyword(s):  
Banking Sector ◽  
West African ◽  
Education Sector ◽  
African Countries ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Insurance Penetration ◽  
The Government

This study analyses the long- and short-term dynamics of the determinants of insurance penetration for the period 1999Q1 to 2019Q4 in 15 West African countries. The panel auto regressive distributed lag model was used on the quarterly data gathered. A cointegrating and short-run momentous connection was discovered between insurance penetration along with the independent variables, which were education, productivity, dependency, inflation and income. The error correction term’s significance and negative sign demonstrate that all variables are heading towards long-run equilibrium at a moderate speed of 56.4%. This further affirms that education, productivity, dependency, inflation and income determine insurance penetration in West Africa in the long run. In addition, the short-run causality revealed that all the pairs of regressors could jointly cause insurance penetration. The findings of this study recommend that the economy-wide policies by the government and the regulators of insurance markets in these economies should be informed by these significant factors. The restructuring of the education sector to ensure finance-related modules cut across every faculty in the higher education sector is also recommended. Furthermore, Bancassurance is also recommended to boost the easy penetration of the insurance sector using the relationship with the banking sector as a pathway.

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