Trends in Banking

2016 ◽  
Author(s):  
Xavier Vives
Keyword(s):  
Economic Growth ◽  
Systemic Risk ◽  
Business Models ◽  
Banking Sector ◽  
Financial Innovation ◽  
Market Concentration ◽  
Shadow Banks ◽  
Regulatory Changes ◽  
The Relationship

This chapter discusses basic trends in the banking sector that are being driven by technological and regulatory changes. It first considers the expansion of banking and financial intermediation, the relationship between the growth of the financial sector and economic growth, and the link between financial innovation and systemic risk. In particular, it examines the role of market-based banking, securitization, and shadow banks in the 2007–2009 crisis. It then describes the evolution of business models in banking, the entry of new competitors to banks, and the evolution of competition. It also looks at the evolution of market concentration out of the consolidation move that has followed the transformation of banking. It shows that increasing competition and the transformation in the banking sector has developed in parallel with a process of concentration.

scholarly journals Uncovering the Dynamic Relationship between Credit and Sustainable Economic Growth in Selected CEE Countries

2021 ◽  
Vol 13 (11) ◽  
pp. 6349
Author(s):  
Adam Altăr ◽  
Matei Nicolae Kubinschi ◽  
Alina Zaharia
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Emerging Market ◽  
Strong Relationship ◽  
Financial Sector ◽  
Dynamic Framework ◽  
Dynamic Relationship ◽  
Sustainable Economic Growth ◽  
The Relationship

Establishing a functional financial sector has been one of the pillars of transition to a functional market economy over the last three decades in the CEE region. The present paper provides a comprehensive analysis of the relationship between credit and economic growth in selected CEE countries, namely, Czechia, Romania, Poland and Hungary, aiming to answer questions related to (i) the role of the banking sector in fostering sustainable economic growth and the causality direction between the financial and real sector, (ii) the relationship between consumption and investment and certain categories of loans and (iii) the identification of loan supply shocks and their role in explaining the dynamics associated with other macroeconomic variables. Using a time-varying parameter structural vector autoregression model with stochastic volatility (TVP-SVAR) and sign restrictions, we identify a non-financial corporations (NFC) credit supply shock and an investment shock. Potential policy solutions to ensure a sound contribution of the financial sector to economic growth in the analyzed economies relate to the strong relationship identified between the two variables. From this perspective, the study is among the first to employ a robust dynamic framework for assessing the role of the financial sector in fostering sustainable economic growth in European emerging market economies.

Emerging Industrial Revolution: Symbiosis of Industry 4.0 and Circular Economy: The Role of Universities

2020 ◽  
Vol 25 (3) ◽  
pp. 505-525 ◽  
Author(s):  
Seeram Ramakrishna ◽  
Alfred Ngowi ◽  
Henk De Jager ◽  
Bankole O. Awuzie
Keyword(s):  
Economic Growth ◽  
Circular Economy ◽  
Industry 4.0 ◽  
Business Models ◽  
Industrial Revolution ◽  
New Technologies ◽  
Production Systems ◽  
Fourth Industrial Revolution ◽  
New Jobs

Growing consumerism and population worldwide raises concerns about society’s sustainability aspirations. This has led to calls for concerted efforts to shift from the linear economy to a circular economy (CE), which are gaining momentum globally. CE approaches lead to a zero-waste scenario of economic growth and sustainable development. These approaches are based on semi-scientific and empirical concepts with technologies enabling 3Rs (reduce, reuse, recycle) and 6Rs (reuse, recycle, redesign, remanufacture, reduce, recover). Studies estimate that the transition to a CE would save the world in excess of a trillion dollars annually while creating new jobs, business opportunities and economic growth. The emerging industrial revolution will enhance the symbiotic pursuit of new technologies and CE to transform extant production systems and business models for sustainability. This article examines the trends, availability and readiness of fourth industrial revolution (4IR or industry 4.0) technologies (for example, Internet of Things [IoT], artificial intelligence [AI] and nanotechnology) to support and promote CE transitions within the higher education institutional context. Furthermore, it elucidates the role of universities as living laboratories for experimenting the utility of industry 4.0 technologies in driving the shift towards CE futures. The article concludes that universities should play a pivotal role in engendering CE transitions.

scholarly journals Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Ronald Rateiwa ◽  
Meshach J. Aziakpono
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Institutions ◽  
Time Series Data ◽  
Bank Lending ◽  
Series Data ◽  
The Sustainable Development ◽  
Long Run ◽  
The Relationship

Background: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth.Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof.Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013.Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting.Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed.Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.

The role of digital economy in China's sustainable development in a post-pandemic environment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malin Song ◽  
Chenbin Zheng ◽  
Jiangquan Wang
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Supply Chain ◽  
Social Development ◽  
Environmental Protection ◽  
Digital Economy ◽  
Series Data ◽  
Content Type ◽  
The Relationship

PurposeThe COVID-19 pandemic is still raging, which calls for an exploration of how to prevent and control pandemics to promote sustainable development. The purpose of this paper is to examine the role of the digital economy in sustainable development, the relationship between the two, the impacts of the outbreak on economic and social development, and changes in China's digital economy.Design/methodology/approachThe study used the time-series data from 2002 to 2019 and an unconstrained VAR model to examine the relationship between the digital economy and sustainable development before the pandemic.FindingsChina's digital economy has promoted the country's sustainable economic and social development; it has advanced rapid economic growth, improved people's living standards, increased efficient utilization of resources, and strengthened environmental protection.Research limitations/implicationsAmid the pandemic, China's digital economy developed effectively; it showed strong resilience because of its unique advantages. The digital economy in China has helped the country to control the pandemic in a short period, reduced the risk of supply chain disruption, promoted China's economic growth, and ensured the orderly operation of society. Therefore, countries worldwide are encouraged to prioritize their digital economies.Originality/valueCompared with the extant literature, this study explores the sustainable supply chain in a broader sense in the context of a pandemic, and how the supply chain is influenced by the digital economy. It not only includes the stability, resilience, and viability of the supply chain in economic development but also involves aspects of people's life, resource utilization, and environmental protection.

scholarly journals Investigating Organizational Commitment as the Outcome of Job Satisfaction: A Study of Banking Sector of Pakistan

2012 ◽  
Vol 2 (4) ◽  
pp. 146 ◽  
Author(s):  
Maryam Saeed Hashmi ◽  
Dr. Imran Haider Naqvi
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Banking Sector ◽  
Theory And Practice ◽  
Descriptive Statistics ◽  
Sample Characteristics ◽  
Intrinsic Job Satisfaction ◽  
The Relationship ◽  
Positive Effect

This study aims to elaborate the role of job satisfaction in committing employees with organization. This study tested the effect of both components of job satisfaction (intrinsic and extrinsic) of on organizational commitment in banking sector of Pakistan. Data was gathered from employees working in banks of Pakistan. The study has uses descriptive statistics (mean and standard deviation) to identify sample characteristics and inferential statistics (multiple linear regression) to find out the relationship between variables. Results showed the significant and positive effect of both components of job satisfaction on organizational commitment. This study is a contribution to theory and practice with an increased understanding on importance of job satisfaction in committing the employees with the organization.   Keywords: Intrinsic Job Satisfaction, Extrinsic Job Satisfaction, Organizational Commitment  

scholarly journals MEDIATING EFFECTS OF EMPLOYEE COMMITMENT IN RELATIONSHIP BETWEEN TOXIC LEADERSHIP AND EMPLOYEES’ PERFORMANCE

2021 ◽  
Vol 9 (4) ◽  
pp. 56-64
Author(s):  
Muhammad Rahman Khan ◽  
Hamid Khan ◽  
Sajjad Ahmad Jan ◽  
Aziz Javad ◽  
Aman Ullah Khattak
Keyword(s):  
Organizational Commitment ◽  
Sample Size ◽  
Banking Sector ◽  
Employee Performance ◽  
Employee Commitment ◽  
Mediating Effect ◽  
Mediating Effects ◽  
Toxic Leadership ◽  
The Relationship

Purpose of Study: The study aimed to examine the mediating effects of employee commitment in the relationship between toxic leadership and employee performance in the context of the banking sector, KP, Pakistan. The study is expected to provide significant information to existing knowledge databases about the toxic leaders, organizational commitment, and employees’ performance. Methodology of Study: The cross-sectional design was used to conduct the study by using a 5-point Likert scale through the questionnaire to collect primary data from the high-level managers of selected commercial banks located south region of KP, Pakistan. The sample of 234 employees of both public/private sector banks was taken randomly as the sample. To compute sample, Yamane (1967) formula for selecting sample from finite population: n=population (566), level of significance, e = 0.05 & n=sample size, sample size (n) = N/1+Ne2 = 566/1+566(0.05), 2 = 234. Main Findings: The results of the study revealed that the significant and positive association among the research variables, the significant impact of the predictors on the criterion variable, and the significant partial mediating role of the employee commitment in the relationship between the toxic leadership and employees’ performance. Applications of Study: The current study focuses on examining the role of toxic leadership on employee performance with mediating effect of employee commitment within the banking sector of KP, Pakistan. This study's significance lies in the banking sector, desiring to acquire sustainable competitive advantage through increased employee performance and employee commitment. Novelty/Originality of Study: The expectation that organizational commitment can improve the relationship between toxic leadership and employee performance is missed to a certain extent in the educational context that is expected to offer a new contribution to an existing database of research.

Financing for Innovation in China

2021 ◽  
pp. 167-186
Author(s):  
Jin Chen ◽  
Liying Wang
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Financial Services ◽  
Business Models ◽  
Industrial Revolution ◽  
Science And Technology ◽  
Financial Innovation ◽  
Financing System ◽  
Important Player ◽  
New Challenges

Technology and capital are two fundamental factors in economic growth; each and every technological and industrial revolution has gone hand in hand with new financial patterns since the First Industrial Revolution in Britain. As a latecomer, China is firmly committed to science and technology (S&T) innovation through innovative financial services. First, by combining fiscal and taxation policies with market capital, China has put in place its own financing system for S&T innovation. Second, fiscal and taxation policies play a fundamental and guiding role. Third, myriad innovative business models, such as “investment-lending-guarantee,” provide examples of diverse ways to support S&T activities through financial innovation. Fourth, corporate internal finance has become an important player in S&T innovation. Fifth, digital financial platforms have been playing an increasingly important role and created some new challenges. Sixth, much room is left for the capital market to play an even bigger role in S&T innovation.

Competition, Regulation, and Stability in Banking: Theory and Evidence

2016 ◽  
Author(s):  
Xavier Vives
Keyword(s):  
Risk Taking ◽  
Systemic Risk ◽  
Banking Sector ◽  
Regulatory Reform ◽  
Reform Process ◽  
Subprime Crisis ◽  
Empirical Perspective ◽  
The Relationship ◽  
Excessive Risk Taking ◽  
Excessive Risk

This chapter examines the relationship between competition and stability in the banking sector both from a theoretical and from an empirical perspective. It considers the competition–stability link from the standpoint of fragility both because of runs and because of excessive risk taking, along with the available evidence assessing how competition relates to systemic risk and how deregulation is associated with risk taking. It also explores the connection between market structure, consolidation, and internationalization and how it affects stability. Lessons from the subprime crisis are derived. The result of the analysis is to characterize the competition–stability trade-off, how regulation can alleviate it, and the need to coordinate competition policy and prudential regulation. The chapter concludes with a discussion of the regulatory reform process in the banking industry after the 2007–2009 crisis.

The Role of Social Media Strategies in Competitive Banking Operations Worldwide

2014 ◽  
pp. 304-340
Author(s):  
Nurdan Oncel Taskiran ◽  
Recep Yilmaz ◽  
Nursel Bolat
Keyword(s):  
Social Media ◽  
Banking Sector ◽  
Concept Development ◽  
Economic Capital ◽  
The Social ◽  
The Relationship ◽  
Banking Operations

Social media has rapidly taken its place among the important phenomenons of today. It has an important role in institutionalization and companies’ financial effectivness in many fields. This chapter discusses concept, development of social media, investigations about social media in different continents, its relation with institutionalization, and its role in the banking sector in the process of globalisation. In this study, social media strategies of a global bank on different continents are empirically analysed. Obtained data sheds light on the relationship between the social and economic capital in today’s world in an interdisciplinary platform.

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