scholarly journals Foreign banks management in the context of a pandemic: problems and solutions

E-Management ◽  
2020 ◽  
Vol 3 (3) ◽  
pp. 4-12
Author(s):  
Sh. U. Niyazbekova
Keyword(s):  
Interest Rates ◽  
Financial Statements ◽  
Capital Requirements ◽  
The Philippines ◽  
Foreign Banks ◽  
World Health ◽  
Physical Interaction ◽  
Management Actions ◽  
General Decline ◽  
The Impact

The article discusses the problems encountered by enterprises in the financial sector in the context of the COVID-19 pandemic. The paper gives examples of management actions of the largest banks in Italy, Brazil, South Korea, China, Portugal, Singapore, the USA, the Philippines and Russia. World Health Organization has advised the population to use contactless payments and reduce the turnover of banknotes to a minimum. The coronavirus has increased the desire of customers to use digital services, making it an urgent need. In fact, the pandemic has led to the fact that Bank customers, who are increasingly afraid to spend time in public places, should be able to conduct banking operations without physical interaction with Bank offices. By implementing fully digital remote customer service, banks must ensure that both routine and unique (one-time, specific) banking processes will be performed without loss or disruption. Under these circumstances, financial institutions will be required to disclose information about the impact of the coronavirus pandemic on their operations in financial statements based on the relevant disclosure standards (Generally Accepted Accounting Principles, GAAP and United States Securities and Exchange Commission, SEC). Disclosure of financial statements may include risk factors such as Fund depreciation, reduced liquidity, and other aspects.The downward trend in interest rates as required by governments and national banking regulators may affect the profitability of banks. Along with a General decline in business activity, this will lead to a decrease in Bank profits. Analysts’ concerns have already resulted in a sharp drop in the share prices of many firms, which creates another problem because some deferred tax assets, such as net operating losses (NOL), are not fully accounted for in the Bank’s regulatory capital requirements. National governments impose industry-specific tax requirements on capital market enterprises, but the challenges they will face when filing and paying direct and indirect taxes are likely to be similar to those faced by other industries.

scholarly journals Does Growing Economy And Better Governance Impede Banking Efficiency? A DEA Analysis

2015 ◽  
Vol 31 (6) ◽  
pp. 2213
Author(s):  
Ramiz Ur Rehman ◽  
Junrui Zhang ◽  
Rizwan Ali ◽  
Abdul Qadeer
Keyword(s):  
Corporate Governance ◽  
Interest Rates ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Banks ◽  
Significant Difference ◽  
Governance Practices ◽  
Growing Economy ◽  
The Impact

The paper estimates the efficiencies of Pakistani banking sector from 1998-2009. The analysis is further extended and regressed estimated banking efficiencies by using Data Envelopment Analysis (DEA), with macro-economic indicators and corporate governance variables of the banking sector. The purpose of this analysis is to determine the impact of overall economic conditions of a country and corporate governance practices on banking efficiencies. The results suggest that the corporate governance practices, like, board size, board independence have positive impact on overall banking sector efficiencies of Pakistan. Also, the GPD growth and interest rates have positive and negative impact on banking efficiencies respectively. The study has not found any significant difference in banking efficiencies of state-owned, private and foreign banks of Pakistan. 

scholarly journals How Mortgage Finance Reform Could Affect Housing

2016 ◽  
Vol 106 (5) ◽  
pp. 620-624 ◽  
Author(s):  
John V. Duca ◽  
John Muellbauer ◽  
Anthony Murphy
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Capital Requirements ◽  
Finance Reform ◽  
Fannie Mae ◽  
Mortgage Finance ◽  
Mortgage Interest Rates ◽  
Size Limits ◽  
Loan Size ◽  
The Impact

Although major changes in mortgage finance have occurred since the subprime bust, several issues remain unresolved, centering on the roles of Fannie Mae, Freddie Mac, and the FHA. We analyze how some reforms might affect house prices in a framework rich enough to simulate the impact of several reforms which change mortgage interest rates and/or loan-to-value (LTV) ratios of first time home buyers, the key drivers of house prices in recent decades. Simulations suggest that ending the GSE interest rate subsidy would have small effects, while changes in capital requirements or maximum FHA loan size limits would have larger effects.

scholarly journals Impacts of COVID-19 on the Catch of Small-Scale Fishers and Their Families Due to Restriction Policies in Davao Gulf, Philippines

2022 ◽  
Vol 8 ◽  
Author(s):  
Edison D. Macusi ◽  
Stefenie Katrin V. Siblos ◽  
Martha Elena Betancourt ◽  
Erna S. Macusi ◽  
Michael N. Calderon ◽  
...  
Keyword(s):  
The Philippines ◽  
World Health ◽  
Small Scale ◽  
Catch Per Unit Effort ◽  
Global Pandemic ◽  
Travel Restrictions ◽  
The Government ◽  
Health Organization ◽  
Reduced Mobility ◽  
The Impact

COVID-19 was declared a global pandemic by the World Health Organization in 2020 with countries putting up several measures to mitigate and flatten the curve of hospitalizations and death from travel bans to home confinements and local lockdowns. This pandemic created health and economic crises, leading to increased incidence of poverty and food crisis especially on both agriculture and the fisheries in many developing nations including the Philippines. The specific objectives of this study were to assess the impact of COVID-19 restrictions on the catch per unit effort (CPUE) of small-scale fishers and to determine what factors could influence the volume of their catch during this time of pandemic. Moreover, this also investigated the impact of COVID-19 restrictions to fishers and their families. To do that we surveyed N = 200 small-scale fishers around the Davao gulf using semi-structured questionnaire and inquired on the impact of the COVID-19 to their fishing operation, catch, fishing costs, and their families. The collected socioeconomic variables, including emotional responses to the pandemic were then related to the CPUE and the volume of catch. The results show that fishers were highly affected by the pandemic due to the lockdown policy imposed in the fishing villages during the earlier phases of restrictions by the government. Fishers were affected in terms of the volume of their catch, also fishing costs, and emotionally as they were also frustrated due to the impacts of the hard lockdown. The restricted fishing access was found to have important and major set-back on the fishing operations of fishers and the same was experienced also by the middlemen given the low fish price and reduced mobility of the fish traders. COVID-19 also impacted the fishers, and their families through lack of mobility, food inadequacy, travel restrictions and their children’s education.

scholarly journals Study on the Phenomenon of Bank Liquidity Tail

2017 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Hongjian Qu ◽  
Jianchun Zhou
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Negative Impact ◽  
External Environment ◽  
Credit Rationing ◽  
Foreign Banks ◽  
Open Market ◽  
Environment Change ◽  
Supervision System ◽  
The Impact

The entry of foreign banks, the spread of financial crisis, the marketization of interest rates and the impact of the point of time assessment lead to the phenomenon of bank liquidity tail, which has a negative impact on commercial banks, the financial system and the national economy. This paper is based on the current situation of the phenomenon of bank liquidity tail, analyzes the reasons of bank liquidity tail from two aspects of management and supervision system of bank liquidity, and proceed from the inner bank, the central bank's monetary policy, the external environment and so on, to find credit mismatches, credit term structure mismatch, the end of the month to pay the deposit reserve, the central bank focused on open market operations, the external macro environment are the main factors of bank liquidity tail. Therefore, this paper puts forward some countermeasures to solve the problem of bank liquidity from the perspective of liquidity supervision system, the bank's own management mode, the central bank credit rationing and the external environment change.

scholarly journals EVALUATION OF THE MACROECONOMIC CONSEQUENCES OF NATURAL DISASTERS AND SUBSEQUENT DISCLOSURES IN THE FINANCIAL STATEMENTS ON THE EXAMPLE OF A CORONAVIRUS PANDEMIC

2020 ◽  
pp. 6-13
Author(s):  
R. Kuzina
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Natural Disasters ◽  
Growth And Development ◽  
Financial Statements ◽  
Financial Resources ◽  
Economic Growth And Development ◽  
General Decline ◽  
The Impact

The article reviews the macroeconomic consequences of natural disasters based on the ECLAC methodology, which separates direct physical damage from indirect damage and additional or secondary effects. A study of the impact of natural disasters on long-term economic growth and development has shown that the scarcity of financial resources after a natural disaster reduces future growth and requires the disclosure of risks associated with dangerous natural phenomena for three reasons. Firstly, there are large opportunity costs associated with diverting scarce financial resources into relief and disaster recovery efforts. Secondly, natural disasters can damage an already complex budgeting process. Thirdly, natural disasters place high demands on international aid resources, diverting resources from development. Natural disasters have a negative impact on both the short and long term. These developments refute the somewhat simplistic notion of a general decline in vulnerability to natural disasters as the economy grows. Instead, a more sophisticated perspective needs to be adopted and applied when conducting detailed macroeconomic risk assessments. Based on the results of such assessments, the risks associated with natural hazards should be included in general development policies and plans. Risk management strategies should also reflect the fact that disasters occur in different hazard categories (climatic, geophysical or epidemic) and entail different risk reduction options. It is also necessary to assess the experience gained from specific events and, if necessary, take appropriate action. Disasters can cause policy and institutional innovation changes that ultimately benefit, in some cases, not only in reducing vulnerability but also in supporting economic growth and development: deregulating agricultural investment, applying climate forecasting to reduce the impact of climate variability, financial risk management mechanisms. In order to manage risks and mitigate the effects of natural disasters by informing users of financial statements about possible side effects of the pandemic, the issue of disclosure and recalculation of financial statements was considered to reflect the effects of coronavirus on companies and assess financial risks.

THE IMPACT OF MACROECONOMIC FACTORS ON FINANCIAL PERFORMANCE OF SELECTED AIRLINES OPERATING INTO KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 1
Author(s):  
Jane W. Kiboi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rates ◽  
Significant Relationship ◽  
Financial Statements ◽  
Aviation Industry ◽  
Gdp Growth ◽  
Net Income ◽  
Macroeconomic Factors ◽  
Inflation Rates ◽  
The Impact ◽  
The Relationship

Purpose: The growth of economy is argued to have a positive impact on financial performance of various key sectors. Economic growth is measured using indicators such as the GDP growth rate, inflation rate, interest rates, exchange rates, money supply among others. This study focused on investigating the impact of global and origin countries GDP growth, Inflation rates and interest rates on net income of selected airlines that operate into Kenya.Methodology: Data on macroeconomic factors was collected from World Bank website for the period of between 2005 and 2014. Data on airlines net income was collected from the published financial statements for the period 2005 to 2014. The published financial statements were audited and as such their use increased the reliability and validity of the findings and conclusions. Audited statements of comprehensive income, statements of financial position, of the selected airlines were collected from their respective websites. Statistical methods correlation and regression analysis were used to test the relationship between the macroeconomic indicators and net income of airlines.Results: The results revealed a negative significant relationship between origin inflation and net income of airlines. The results further revealed a negative and significant relationship between origin interest rates and net income of the airlines. The relationship between origin GDP growth and net income of the airlines was insignificant at 5% significant level.Unique contribution to theory, practice and policy: This study recommends that investors in aviation industry should heavily invest when the macroeconomic fundamentals such as interest rates and inflation rates of origin countries are strong to be able to reap high profitability from airlines.  Again, investors should invest more when the global economy is performing well so as to reap maximum profits from airlines destined to Kenya. That the key indicators and determinants for investment decision making in the aviation industry are the Global GDP, Global inflation, Country of Origin interest rates and inflation rates.

Inter-linkages and performance of Asian stock markets amidst COVID 2019

2020 ◽  
Vol 07 (03) ◽  
pp. 2050028
Author(s):  
Rajani B. Bhat ◽  
V. N. Suresh
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Stock Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
World Health ◽  
Corona Virus ◽  
The World ◽  
Health Organization ◽  
The Impact

The corona virus outbreak, which originated in China, has infected lakhs of people. Its spread has left businesses around the world counting costs. The corona virus is going global, and it could bring the world economy to a standstill. COVID-2019 that began in the depths of China’s Hubei province is spreading rapidly, persuading the World Health Organization to declare it as a pandemic. There are now significant outbreaks from South Korea to Italy and Iran, from America to Britain. The ongoing spread of the new corona virus has become one of the biggest threats to the global economy and financial markets. The economic impact of the COVID-2019 pandemic has introduced extraordinary volatility in global financial markets, as participants are obliged to reassess their valuations of all investments and associated derivatives as the situation develops. In an environment where uncertainty makes it unusually hard to price assets and for market-makers to operate, exchanges are providing the only way to establish consensus on these valuations in real time. Volatility has reached levels comparable with the Global Financial Crisis of 2008, with one-day losses not seen since 1987. The situation is made more challenging by high levels of indebtedness and already low interest rates. The financial markets are all integrated into one as global markets in the current era of globalization. It is important that financial markets remain able to perform their role — providing investors with liquidity, facilitating price discovery, and allowing for risk transfer and the transmission of monetary policy. This study aims at examining the performance of the selected Asian stock markets amidst the times of COVID-2019. This study intends to examine the interlinkages of Asian stock markets selected and to observe the impact of COVID-2019 on these markets. The period of study is from 1st December, 2019 to 31st March, 2020. The tools adopted for the study are correlation, regression, ANOVA and paired sample [Formula: see text] test.

scholarly journals The Impact Of Basel III On Italian Banks Loan Rates: An Accounting-Based Approach

2012 ◽  
Vol 11 (11) ◽  
pp. 1269
Author(s):  
Pasquale Di Biase
Keyword(s):  
Interest Rates ◽  
Banking System ◽  
Bank Lending ◽  
Capital Requirements ◽  
Bank Loans ◽  
Bank Loan ◽  
Basel Iii ◽  
Baseline Scenario ◽  
Percentage Point Increase ◽  
The Impact

This paper empirically investigates the impact of the new capital requirements imposed under Basel III on bank lending rates.A general accounting equilibrium model is developed in order to map the change in the average interest rate on bank loans which is required to preserve the economic performance and the market value of financial institutions under the new regulatory framework.The study refers to the Italian banking system. According to our estimates, the long-term impact of heightened capital requirements on bank loan rates is likely to be modest.In our baseline scenario, we find evidence that each percentage point increase in the capital ratio can be recovered by increasing interest rates with which borrowers are charged by only 5.75 basis points. We conclude that the Italian banking system should be able to adjust to the higher capital requirements imposed by Basel III through a set of operative and commercial levers with no significant effects on the cost of credit for companies and consumers.

scholarly journals The impact of the Covid–19 pandemic on the formation statement of financial position

2021 ◽  
pp. 191-200
Author(s):  
F. K. Yerdavletova ◽  
Danyi Ge ◽  
S. A. Akhanov
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
World Health ◽  
Modern World ◽  
Financial Reporting Standards ◽  
Financial Position ◽  
The World ◽  
Coronavirus Infection ◽  
Health Organization ◽  
The Impact

Last December it became known about the outbreak of a new virus – COVID–19. The spread of coronavirus infection and the announcement in this regard by the World Health Organization (WHO) of the beginning of the coronavirus pandemic, led to a failure of the system of economic activity in general in all countries of the world. This article is devoted to the preparation of financial statements in the context of a global problem- coronavirus pandemic. A significant problem has brought to mind the standards that professional accountants rarely refer to. The mentioned problem is still poorly understood, since the modern world has never encountered a situation of this kind. Based on the analysis of the current version of international financial reporting standards, the article presents a methodology for reflecting the consequences of the coronovirus pandemic in the statement of financial position. It was found that the outbreak of the virus had a significant impact on the preparation and presentation of the report on the financial position of the companies. The direct and indirect impact on the functioning of companies was not the virus itself, but the methods of fighting against it. A pandemic situation, in accordance with the provisions of IFSR 10, is not a corrective event, but a significant one. This means that companies, at a minimum, should reflect this in the notes when submitting the report. The final impact of the COVID–19 pandemic on the overall statement of financial position varies depending on the specific business risks and circumstances prevailing in the company.

scholarly journals 5.8. New model of insurance contract measurement as the factor for the improvement of the quality of financial statements

2020 ◽  
Author(s):  
М.Б. Арчакова-Ужахова
Keyword(s):  
Interest Rates ◽  
Critical Analysis ◽  
Financial Statements ◽  
Insurance Contract ◽  
Economic Environment ◽  
New Model ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
The Impact

Статья посвящена проблемам реформирования учета страховых договоров в соответствии с требованиями международных стандартов финансовой отчетности (МСФО). Прежний подход к учету предполагал отсутствие единой последовательной учетной политики в отношении страховых договоров, разрешал применять учетные практики тех стран, в которых находится эмитент страхового договора, что влекло за собой ряд проблем. Автор статьи исследовал специфику и провел критический анализ требований нового стандарта МСФО (IFRS) 17, оценил преимущества нового подхода, а также последствия внедрения и влияние стандарта на транспарентность финансовой отчетности компании-страховщика. The article deals with issues related to the problems of reformation of insurance contracts’ accounting. The existing Standard, IFRS 4, allows insurers to account differently for insurance contracts they issue, even if those contracts are similar. Further, many insurers’ financial statements lack regular updates of the value of insurance obligations to reflect the effect of changes in the economic environment, such as changes in interest rates and risks. The author of the research has made critical analysis of requirements of the new standard, measured the impact of new rules at the transparency of financial statements.

Sign in / Sign up

Export Citation Format

Share Document