scholarly journals Fintech Credit and Bank Efficiency: International Evidence

2021 ◽  
Vol 9 (3) ◽  
pp. 44
Author(s):  
Tu D. Q. Le ◽  
Tin H. Ho ◽  
Dat T. Nguyen ◽  
Thanh Ngo
Keyword(s):  
Positive Impact ◽  
Negative Relationship ◽  
Banking System ◽  
Bank Efficiency ◽  
Banking Systems ◽  
International Evidence ◽  
Global Banking ◽  
The World

The expansion of fintech credit around the world is challenging the global banking system. This study investigates the interrelationships between the development of fintech credit and the efficiency of banking systems in 80 countries from 2013 to 2017. The findings indicate a two-way relationship between them. More specifically, a negative relationship between bank efficiency and fintech credit implies that fintech credit is more developed in countries with less efficient banking systems. Meanwhile, a positive impact of fintech credit on the efficiency of banking systems suggests that fintech credit may serve as a wake-up call to the banking system. Therefore, fintech credit should be encouraged by the authorities around the world.

EVALUATION OF THE EFFECTIVENESS OF BASEL III REFORMS UNDER COVID-19

2021 ◽  
Vol 2 (5) ◽  
pp. 21-26
Author(s):  
F. Kh. SOZAEVA ◽  
Keyword(s):  
Positive Impact ◽  
Banking System ◽  
International Standards ◽  
Basel Iii ◽  
Work Program ◽  
Banking Systems ◽  
Basel Committee ◽  
Assessment Program ◽  
Banking Policy ◽  
Global Banking

The paper presents an assessment of the effectiveness of the Basel III reforms in the context of COVID-19. The paper analyzes the Post-Crisis Reform Assessment Program (2008–2009) and the two-year work program of the Basel Committee for 2021–2022, which sets out the strategic priorities of its activities in the field of banking policy, supervision and implementation. The conclusion is made about the positive impact of international standards on the security and resilience to the crisis of both individual banking systems and the global banking system.

Capital market development and bank efficiency: a cross-country analysis

2019 ◽  
Vol 15 (4) ◽  
pp. 478-491 ◽  
Author(s):  
Thanh Ngo ◽  
Tu Le
Keyword(s):  
Causal Relationship ◽  
Capital Market ◽  
Banking System ◽  
Market Development ◽  
Banking Efficiency ◽  
Content Type ◽  
Banking Systems ◽  
Global Banking ◽  
The World ◽  
The Capital Market

Purpose The purpose of this paper is to empirically investigate the causal relationship between banking efficiency and capital market development in 86 countries between 2006 and 2011. Design/methodology/approach The authors follow the two-stage framework: data envelopment analysis (DEA) with the use of financial ratios is used to arrive at efficiency scores of the banks in the first stage. Thereafter, those efficiency scores will be linked with the development level of the capital markets of the corresponding country in the second stage using the generalised method of moments in a simultaneous equations model. Findings The authors found that banking systems around the world were still inefficient, suggesting that it would take time for the global banking system to recover after the global financial crisis 2007/2008. More importantly, the findings demonstrated that the larger the capital market is, the less efficient its banking system would be. In contrast, banking efficiency can positively influence the development of the capital market. Research limitations/implications The data are unbalanced and limited to 86 countries; the study did not analyse the productivity change over time of those banking systems; and it would be useful to test the first-stage DEA with different sets of variables as well as different assumptions. Practical implications The paper suggests that for any economy around the world, an improvement in banking performance and efficiency rather than capital market development should be a priority, alongside with monitoring inflation. Originality/value The paper provides an unbiased analysis of the causal relationship between the banking sector and the capital market.

scholarly journals Geo-financial stability of the global banking system

2020 ◽  
Vol 15 (4) ◽  
pp. 164-178
Author(s):  
Galina Gospodarchuk ◽  
Nataliya Amosova
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
System Stability ◽  
Qualitative Assessment ◽  
Global Level ◽  
Banking Systems ◽  
Global Banking ◽  
The World ◽  
And Cluster Analysis ◽  
Analytical Tools

The development of globalization creates a need for diagnosis of financial stability at the global level. This study aims to analyze the financial stability of the global banking system and identify threats to stability at the level of geographic regions and countries. The study uses the methods of a structured system, comparative and cluster analysis. The empirical study is based on World Bank data for 126 countries for the period 1998–2017. One of the key results of the study is the development of quantitative indicators of the financial stability of the world banking system. These indicators differ from the existing ones due to the predictive nature of the former. The study also proposes criteria of qualitative assessment of the level of financial stability of the world banking system and its individual elements in the form of regional and national banking systems. In addition, appropriate algorithms were developed to calculate the proposed indicators and criteria. The results helped to form clusters of countries in terms of the level of their banking system stability, compile maps of financial stability risks at the global level, and identify countries that are sources of potential threats to financial stability. The empirical part of the study confirms the practical applicability of the proposed analytical tools. The study shows that in 2017, the banking system of Asian countries moved to the high-risk zone. Potential threats to the financial stability of the global banking system come from the European and Asian banking systems, as well as from the Australian banking system. AcknowledgmentThe study was funded by the RFBR according to the research project No 18 010 00232 “A methodology of multilevel system of diagnostics and regulation of financial stability” year 2018–2020.

MODERN TRENDS IN THE DEVELOPMENT OF THE GLOBAL BANKING SECTOR

2021 ◽  
Vol 2 (11) ◽  
pp. 143-149
Author(s):  
Natalia Yu. Lebedeva ◽  
◽  
Kheda M. Musayeva ◽  
Georgy O. Berkaev ◽  
◽  
...  
Keyword(s):  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Digital Transformation ◽  
Financial Products ◽  
Global Banking ◽  
The World ◽  
The Creation ◽  
Widespread Dissemination

The article is devoted to the development of the global banking sector in the context of the digital transformation of the economy, the introduction of platform solutions and the creation of ecosystems that provide the client with a range of financial and non-financial products and services. The author highlights the trends and directions of development of the banking sector, among which many researchers and econo-mists note the presence of facts that are directly related to the conditions of modern social and state develop-ment. A set of trends in the development of the world banking system is proposed, which is directly related to the processes of digitalization of society and the widespread dissemination of information technologies.

Conceptual provisions of management percentage risk in international practice

2021 ◽  
pp. 205-218
Author(s):  
Valentin Yur’evich Vakhrushev ◽  
Andrey Viktorovich Zakharov ◽  
Mikail Bekzadaevich Khudzhatov
Keyword(s):  
Russian Federation ◽  
Commercial Banks ◽  
Banking System ◽  
Developed Countries ◽  
Central Banks ◽  
Interest Rate Risk ◽  
Global Banking ◽  
The World ◽  
The Face ◽  
The Russian Federation

In the face of the COVID-19 pandemic world banking system is being severely tested. The last time such shocks occurred during the global fi nancial crisis of 2008–2009. However, the crisis of the global banking system in 2020 caused by the COVID-19 pandemic is very diff erent from the global fi nancial crisis of 2008–2009. During the previous global fi nancial crisis, central banks around the world were able to cut key rates to stimulate the aff ected economy, while the current crisis is taking place in conditions of extremely low and even negative key rates. Consequently, the central banks of the economically developed countries of the world lack one of the most eff ective tools to stimulate the economy in the face of a global crisis. Since the maximum income of commercial banks is generated by the operation of high key rates, the downward trend in recent years is a serious risk to the business of commercial banks. The article analyses the dynamics of key rates in the economically developed countries of the world in comparison with China and the Russian Federation, based on the results of this document, the main trends and patterns were identified, the most dangerous risks for commercial banks are shown. Besides the article discusses the modern conceptual provisions of interest rate risk management in commercial banks of the Russian Federation. They form the basis for the development of constructive methods for assessing commercial risk and the formation of managerial decisions that ensure its prevention or reduction of negative consequences in the event of the implementation of risk events that determine it.

scholarly journals Research of Money Characterstics in the Condutions of Segmentation of their Digital Analogues

2020 ◽  
pp. 141-151
Author(s):  
Vyacheslav Voloshin ◽  
◽  
Viktoriya Gonchar ◽  
Keyword(s):  
Money Supply ◽  
Large Scale ◽  
Banking System ◽  
Indirect Evidence ◽  
World Market ◽  
Service Market ◽  
Global Banking ◽  
Commodity Money ◽  
The World ◽  
Digital Money

The paper presents an attempt to study new qualitative characteristics of money that they will receive in the event of legalization of options for digital currencies in the world market. The logic of the development of the modern cryptocurrency segment is such that they will potentially be able to change the world market towards a complete rejection of the cash. This, in turn, will significantly change the system of commodity-money relations in favor of holders or managers of digital currencies, which will become uncontrollable from both their passive owners and the state. It is shown that the characteristics of digital money can gradually shift towards their endless illiquidity, as well as towards the gradual elimination of the concept of equivalence in commodity exchange. In this case it is possible to change the entire ideology of business, as the basis of the modern economy. Possibility to localize the likely excess composition of digital money, a large-scale growth of the service market is considered, as an alternative to the market of material goods. Digital money itself can be a system for irreversible changes in the conditions of controllability of any trading operations. Nowadays there are certain prerequisites for this: the global expansion of the services market as an active segment of the business, as an alternative to the goods market; a cryptocurrency with starting capabilities, as a reasonable currency with unlimited inflationary opportunities; the factor of counteraction to these changes on the part of the global banking system, as indirect evidence of such prerequisites, etc. The paper presents data on the calculation of risks associated with the financial instability of some countries’ economies during the transition from system cash to digital calculations. It is shown that a systemic transition to new rules for dealing with an infinite digital money supply can lead to the elimination of the system of equivalent exchange of the "commodity-money-commodity" type, into the area of uncontrolled expansion of the services market, as a commodity segment capable of hiding digital unsecured money supply.

scholarly journals U.S. CITIES IN THE GLOBAL BANKING SYSTEM (1970s - 2010s)

2020 ◽  
Vol 4 (1) ◽  
pp. 83-92
Author(s):  
L.V. Nikitin
Keyword(s):  
United States ◽  
Western Europe ◽  
Banking System ◽  
The United States ◽  
Similar Data ◽  
Us Economy ◽  
Slow Development ◽  
Global Banking ◽  
The World ◽  
Other Information

Based on statistical data and other information, the article traces how the place of the United States of America in the world banking system was changing over the course of several decades. Such monitoring is carried out simultaneously at two levels: both in relation to the country as a whole, and to its most important cities. Research begins at the turn of the 1960s-1970s and extends to the present (the choice of the starting chronological point is determined by the fundamental shifts in the world economy that took place during that period, as well as by the emergence in 1970 of accessible and reliable statistical reports of an international scale). The set of quantitative indicators reflecting the ups and downs in the history of American banking business is considered in parallel with similar data for the main competing forces, namely Western Europe, Japan and China. The measurements show that in the 1970s and 1980s the share of the United States in the global banking was usually declining. The centre of credit activity then moved to Japan and partly to Europe. Such shifts were explained by both the relatively slow development of the US economy and a number of legal restrictions that American banks faced within their own country. Reforming of the national financial sector, carried out in several stages during the 1980s - 1990s, yielded contradictory but mostly positive results. From 1994-1995, US shares in the global banking began to rise, and then stabilized at relatively high levels. The American successes, for all their moderation, seemed to be a significant achievement, given that even the most powerful newest factor, the enormously fast strengthening of China, could not block them. Positive changes for the United States were connected with the ability to modernize national legislation rather flexibly and quickly, as well as with the maintenance of significant internal competition between cities (in comparison with the more monopolized banking areas of Europe and the largest Asian countries).

scholarly journals How to Save the World Management of the Banking System?

2020 ◽  
Vol 7 (5) ◽  
pp. 1
Author(s):  
Mamadou Sylla
Keyword(s):  
Financial Crises ◽  
Banking System ◽  
Bank Credit ◽  
Subprime Crisis ◽  
Global Banking ◽  
The World ◽  
Set Up ◽  
Payment Mechanisms

The unprecedented subprime crisis, the deregulation of the market, bank credit and payment mechanisms have facilitated the spread of the risk to the whole of economy. This study examines the issue of the processes set up to save the management of the global banking system. To achieve our goal, we conducted a survey of the various techniques used by banks to prevent global financial crises. At the end of our study, we found that the banks while opting for different policies play the same role and are increasingly hard to avoid risk.

scholarly journals Non-performing loans decision making in the Romanian banking system

2018 ◽  
Vol 13 (1) ◽  
pp. 761-776 ◽  
Author(s):  
Ionuț-Daniel Pop ◽  
Nicoleta Chicu ◽  
Andrei Răduțu
Keyword(s):  
Decision Making ◽  
Unemployment Rate ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Current Paper ◽  
Banking Systems ◽  
Depth Analysis ◽  
The World ◽  
Qualitative Variables ◽  
Dynamic Panel Regression

Abstract Non-Performing Loans (NPLs) are representing nowadays one of the main challenges for the banking systems all over the world. Therefore, a sustainable decision-making process should be implemented, for minimizing the effects of credit risk. The current paper uses a dynamic panel regression model to present the determinants of NPLs for the largest five banks of the Romanian Banking System during 2007-2016. A Generalized Method of Moments (GMM) regression is used and defined under three different types of variables: bank specific indicators, macroeconomic indicators and qualitative variables. Other studies illustrated also the determinants of NPLs in various banking systems from all around the world, such as Japan, China or several CEE countries (especially the emergent ones). After an in-depth analysis of the literature and Romanian market, the following variables were found to be relevant and were introduced into a dynamic data panel model: unemployment rate, annual average growth rate of gross domestic product, return on equity (ROE), loan to deposit ratio (LTD). The existing literature presents ROE as having a negative impact on NPLs, unemployment rate being positive correlated with NPLs and a negative relationship between economic growth and such loans. Our contribution to the current literature is represented by the introduction of two additional qualitative variables (Board Risk Management Ratio (BRMR), as the proportion of risk managers within the Board of Directors of each bank in question and the Expert Aggregate Priority Vector (EAPV), as the aggregated perceived risk regarding the NPLs). The decision of introducing these variables relies on previous research made in this area, results being validated by experts from the Romanian Banking System, according to the BASEL III and NBR criteria. The results of the current paper are consistent with the existent literature, the correlations and impact of the variables being relevant for the subject matter.

scholarly journals Impact of Bank-Specific, Corporate Governance and Environmental Factors on Bank Efficiency and Profitability in Pakistan

2021 ◽  
Vol 5 (2) ◽  
pp. 69-86
Author(s):  
Hafiz Muhammad Athar ◽  
Sumayya Chughtai
Keyword(s):  
Environmental Factors ◽  
Technical Efficiency ◽  
Positive Impact ◽  
Critical Mass ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Negative Relationship ◽  
Board Structure ◽  
Bank Efficiency ◽  
The Impact

The study aims to investigate the impact of bank-specific, board structure, gender diversity, and environmental factors on bank efficiency and profitability in Pakistan by taking a sample of seventeen commercial banks for the period 2013-2018. Data envelopment analysis (DEA) and return on assets (ROA) are used as a proxy to measure bank efficiency and profitability. Panel estimation techniques and Generalized Method of Moments (GMM) are used to conceptualize the research framework and to test the hypotheses. The findings indicate a negative relationship of non-performing loans, advances, level of involvement of women into other committees, and CSR index with ROA; while more presence of women on board reveals a positive and significant impact on ROA that is consistent with critical mass theory. However, CEO duality shed a positive impact on technical efficiency; while bank size signifies an inverse relationship with ROA and technical efficiency. Moreover, deposit influences ROA positively; while board size finds a positive and significant relationship with ROA and technical efficiency.  The findings are important for various stakeholders as they can efficiently take their decision-making to better understand the factors influence bank performance. This study recommends future researchers do the same research by inculcating a larger sample size.

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