scholarly journals The Impact of Bailout on Financial Performance And Bank Risk-Taking During Financial Crisis: A Critical Systematic Review

2019 ◽  
Vol 3 (1) ◽  
pp. 7-13
Author(s):  
Dety Nurfadilah
Keyword(s):  
Systematic Review ◽  
Financial Crisis ◽  
Financial Performance ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Risk ◽  
The Global Financial Crisis ◽  
The Impact

The focus on the bank bailout has been increased since the global financial crisis in 2008 in most countries. However, previous studies often discover the relationship between bailout and corporate governance. In this study, bank bailout literature will be reviewed with the focus on the impact of bailout on bank financial performance and bank risk-taking during the financial crisis. Multi-step strategy is used to collect the data from 2000 to 2016. From the 7 papers were chosen based on the criteria. This systematic review has shown that the bank bailout has a positive impact on financial performance, however, it has a negative impact on bank risk-taking for a longer period.

Restructuring Measurements Impact on Bank Risk After the Global Financial Crisis — Empirical Evidence from Vietnam

2021 ◽  
pp. 2150019
Author(s):  
Tu T. T. Tran ◽  
Yen Thi Nguyen
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
The State ◽  
Bank Risk ◽  
The Government ◽  
The Global Financial Crisis ◽  
Bank System ◽  
The Impact

Project 254 signed in November 2011 which is relating to “Restructuring the system of credit institutions in the period of 2011–2015” has been considered as a milestone in marking the Vietnamese government to prevent the influence of the financial crisis of 2008. This paper identifies hypotheses evaluating the impact of restructuring measurements on the risk of the Vietnamese’s commercial banks in 10 years, starting from 2008. Using the OLS regression method for analysis by running Eviews and ANOVA test in SPSS with a unique database of 216 observations of 31 commercial banks in Vietnam, it was found that: (i) The bail-out activities of the State Bank of Vietnam in 2015 does not influence on bank risk, (ii) The mergers and acquisitions (M&A) do not support the bank to reduce risk, it increases the risk for acquiring banks, (iii) The global crisis 2008 exerts dire consequence on the bank system in Vietnam, (iv) There is the difference of risk among the groups of the bank experiencing a different number of years of operation. Basing on this result, the paper also makes recommendations to the Government, The State Bank of Vietnam and the commercial banks for effective risk management toward the development of the Vietnamese banking system.

How the Global Financial Crisis and International Trade Affected Corporate Decisions?

2021 ◽  
pp. 137-157
Author(s):  
Hasan Tekin
Keyword(s):  
International Trade ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Positive Impact ◽  
Institutional Setting ◽  
Financial Decisions ◽  
Corporate Decisions ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Positive Effect

This chapter, first, draws an overview of the theoretical and conceptual framework of corporate decisions in the global financial crisis (GFC) context. Then, it shows the connectedness of corporate finance and international trade. Finally, employing a rich dataset, this chapter assesses the impact of international trade as well as the GFC on corporate financial decisions, particularly cash holdings, debt financing, and dividend payouts over the period 2002-2016. The findings show that international trade significantly affects corporate decisions. Firms with higher trade countries have higher debt level but lower cash and dividends across the globe. During the GFC, the positive impact of trade on debt shifts to negative. Also, trade has a positive effect on both cash and debt in the aftermath of the GFC. Taken together, international trade as an institutional setting influences corporate decisions and its role on cash, debt, and dividend differ during and after the GFC.

scholarly journals FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

2017 ◽  
Vol 4 (1) ◽  
pp. 149
Author(s):  
Laili Rahmi
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Risk Ratio ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Business Unit ◽  
Significant Difference ◽  
The Global Financial Crisis ◽  
The Impact

<p>The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013</p>

scholarly journals The Impact of Downsizing and Efficiency Measures on Anti-Fraud Resources

2015 ◽  
Author(s):  
Marek Palasinski
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Operational Performance ◽  
Insurance Companies ◽  
Junior Staff ◽  
Efficiency Measures ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Practical Implications

The main purpose of this study was to explore the impact of downsizing and efficiency measures on two key elements of operational performance - fraud detection and fraud reporting. Qualitative data were obtained from ethnographic observations of two major multinational insurance companies, which were already examined before the Global Financial Crisis, and subjected to an inter - and intra - business comparative analysis of anti - fraud resources. The paper points out a big discrepancy in opinions on the downsizing effects between junior staff and their supervisors. Whereas the latter present them as enabling the business to deal with suspicious claims more quickly, the former offer a contrastingly different view in which the constantly growing pressure often lea ds to suspicious claims getting approved. By validating the practical implications of a purposefully adapted version of resource - based theory, the paper illustrates the inviability of subjecting anti - fraud resources to the same levels of downsizing and efficiency as other business resources. Although the literature on the general negative impact of downsizing on the broadly - defined operational performance is growing, this is the first major study to examine its impact on insurance anti - fraud processes and illustrate their changes following the Global Financial Crisis.

scholarly journals Recent trends in the Croatian agricultural business sector

2013 ◽  
Vol 7 (2-3) ◽  
pp. 109-113
Author(s):  
Josip Juračak ◽  
Dario Vukalović
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Business Sector ◽  
Gdp Growth Rate ◽  
Recent Trends ◽  
Agricultural Business ◽  
The Global Financial Crisis ◽  
The Impact ◽  
National Business

The purpose of this paper is to explore recent trends in the Croatian agriculture and forestry business sector and compare it with the Croatian economy as a whole. This topic is considered interesting because recent business years have been heavily influenced by the global financial crisis. Many authors would say that agriculture, as a specific branch of the economy, does not follow general trends, but is affected rather by other factors, especially such as environmental ones. The global financial crisis had the most negative impact on the Croatian economy in the 2008/2009 period, when the GDP growth rate tumbled from 2.4% to -5.8%. Although some positive movements have been recorded since 2009, a recession is still going on. Based on information from the National Financial Agency (FINA) database we found that during the period 2007-2011, agricultural firms experienced the same trends as the whole economy, except in terms of average monthly salaries and employment. However, due to the impact of / on? agricultural products prices and yields, in two year period from 2008 to 2010, agricultural firms recorded an almost linear fall in revenues, while the national business sector on the whole experienced a sharp fall in revenues in 2009 and then only a modest fall in 2010.

scholarly journals FDI-Led-Growth in Malaysia: Autoregressive Distributed Lag (ARDL) Bounds Testing Approach

2018 ◽  
Vol 11 (11) ◽  
pp. 46
Author(s):  
Jerome Kueh ◽  
Yong Sze Wei
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Bounds Testing ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Impact

This study intends to investigate the validity of the foreign direct investment, FDI-led-growth hypothesis in Malaysia in this era. Autoregressive Distributed Lag (ARDL) bounds test approach is adopted to examine the impact of FDI inflow towards growth of Malaysia based on annually data from 1980 to 2016. Empirical results indicate that FDI inflow has significant positive impact on economic growth. This implies that FDI inflow remain important tool for stimulating economic growth of Malaysia. In addition, there is a negative impact of FDI inflow on economic growth during the 1997 Asian Financial crisis and positive impact during the 2008 Global Financial crisis. In terms of policy recommendation, the policy makers should continue to develop strategies to further attract FDI that will contribute to increasing the productivity in the country.

scholarly journals Effect of bank levy introduction on bank risk-taking

2021 ◽  
Author(s):  
Karolina Puławska
Keyword(s):  
Financial Institutions ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Financial Institution ◽  
Banking Regulation ◽  
Bank Risk ◽  
Bank Levy ◽  
The One ◽  
The Global Financial Crisis

Abstract Risk-taking by financial institutions is widely regarded as the one of the causes of the global financial crisis. To reduce the probability of crises and internalize the costs of financial institution distress, policymakers have introduced bank levies (BLs). In this study, we evaluate the effects of the Hungarian and German BLs on the risk-taking behavior of financial institutions. We compare two totally different BL designs. The results unambiguously demonstrate that a BL on assets has a negative impact on the financial sector’s stability. The results of analyzing the influence that introducing BLs has had on the German financial sector demonstrate that BLs on liabilities decrease credit risk. An improved understanding of the determinants of the risk of EU financial institutions is very important for regulators and supervisors interested in benchmarking and validation issues related to the new EU banking regulation.

scholarly journals Global Financial Crisis and the Profit Efficiency of First Bank of Nigeria PLC; a Stochastic Frontier Analisis

2020 ◽  
Vol 11 (01) ◽  
pp. 21700-21717
Author(s):  
ABERE Benjamin Olusola ◽  
Teniola Abosede
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Stochastic Frontier ◽  
Research Work ◽  
Least Square ◽  
Profit Function ◽  
Profit Efficiency ◽  
The Global Financial Crisis ◽  
The Impact

This study examines the Impact of Financial Crisis on the Profit Efficiency of First Bank of Nigeria Plc. The study makes use of data covering the period 1981-2017. The objective of the research work is to analyse the trend in efficiency of First Bank of Nigeria Plc before, during and after the financial crisis The study rests on the Minsky Financial Instability Hypothesis theoretical framework and uses the translog Stochastic Frontier profit function with one output (Loans), two inputs (price of funds and noninterest expense) and two netputs (fixed assets and equity) to formally examine the impact of the Global Financial Crisis on the profit efficiency of this bank. This study also employs the Multivariate Regression Analysis to examine the relationship between the profit efficiency of the bank and some contextual variables. To achieve this objective, the study uses the Ordinary Least Square to examine the potential determinants of the bank's Profit efficiency. The result of the translog profit function shows that the bank made a significant progress during the crisis period while that of the OLS shows that the Global Financial Crisis does not have a statistically significant impact on the profit efficiency of the bank. Looking at the other determinants of the profit efficiency of the bank, the result shows that variations in the dependent variable has been largely explained by the independent variable as shown by R-square of 0.9628. Also, total asset, bank's diversification, capital strength all have positive effect on the profit efficiency of the First Bank of Nigeria while Bank's loan intensity and the Gross Domestic Product have negative impact. The study concludes that Global Financial Crisis did not have impact on the efficiency of First Bank of Nigeria Plc. It is therefore essential that the regulatory and supervisory authorities (CBN and NDIC) formulate and implement monetary policies that are effective in helping the banks to improve their operations, thereby leading to efficiency in resource allocation and utilization.  

scholarly journals The Impact of Regulatory Capital and Bank Characteristics on the Relationship between Bank Competition and Risk Taking in the Banking System

2021 ◽  
Vol 28 (1) ◽  
pp. 87
Author(s):  
Eman Abdel-Wanis
Keyword(s):  
Risk Taking ◽  
Negative Impact ◽  
Positive Impact ◽  
Banking System ◽  
Bank Risk ◽  
Bank Competition ◽  
Regulatory Capital ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This paper explores the association between bank competition, regulatory capital, and bank risk taking in an Egyptian setting and to examine the interaction between bank competition and regulatory capital and their impact on bank risk taking in developing countries like Egypt and also investigate the effect of bank characteristics on the relationship between bank competition and bank risk taking through a sample of 27 Egyptian listed banks during the period 2012-2018 using OLS regression . Results indicated that there is a negative impact of bank competition on the bank risk taking and a positive effect of regulatory capital on bank risk taking in the Egyptian listed banks. Results show that increase regulatory play a vertical role in enhance association between competition and bank risk taking and also, there is a positive impact of bank characteristics like: bank size and divarication on bank risk taking in the Egyptian banks. Results refer to there is no effect of bank type, leverage and profitability to support the relationship between bank competition and risk taking

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