scholarly journals A Holistic Perspective on Bank Performance Using Regulation, Profitability, and Risk-Taking with a View on Ownership Concentration

2021 ◽  
Vol 14 (3) ◽  
pp. 111
Author(s):  
Shailesh Rastogi ◽  
Rajani Gupte ◽  
R. Meenakshi
Keyword(s):  
Institutional Investors ◽  
Dynamic Panel Data ◽  
Bank Performance ◽  
Shareholder Protection ◽  
Holistic Perspective ◽  
Proposed Model ◽  
Retail Investors ◽  
Fresh Perspective ◽  
Managerial Level ◽  
The Impact

There is a lack of a holistic perspective on bank performance. This study proposes a multidimensional (three-pronged) approach encompassing regulation, profitability, and nonperforming assets (NPAs) and their interactions as a measure of the performance of a bank. Moreover, the impact of equity holdings of promoters, institutional investors, and retail investors on the proposed three-pronged approach of the bank performance are also explored. Values of the concerned variables were gathered from 2016 to 2019. The dynamic panel data method was applied to empirically test the proposed model. The main findings supported the premises of the proposed approach to bank performance. Furthermore, various ownership classes provided mixed results for their impact on bank performance. Unfavorable roles of promoters and institutional investors and an indifferent role of the retail investors group were startling outcomes of the study. Successful empirical endorsement of the proposed approach for bank performance provides a fresh perspective and has varied policy- and managerial-level implications. The findings regarding various shareholder groups (ownership classes) can be a catalyst to set the policy for ownership distribution in banks, as well as shareholder protection and activism, which are conspicuously absent in India.

Foreign banks in MENA countries: how important? How relevant?

2016 ◽  
Vol 32 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Positive Impact ◽  
Spillover Effects ◽  
Dynamic Panel Data ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Bank Performance ◽  
Content Type ◽  
Mena Countries ◽  
Domestic Banks ◽  
The Impact

Purpose – The role of foreign banks in impacting the behavior of domestic banks has been a relatively unaddressed topic in the literature. Employing bank-wise data on MENA countries during 2000-2012, the purpose of this paper is to examine how the behavior of foreign banks impact domestic bank performance. For this purpose, the authors focus on not only their profitability and stability, but also on broader numbers such as loan portfolio and funding costs. In addition, the authors also explore the impact of foreign banks on the growth of domestic economies and its implications for the allocation of capital and labor. Design/methodology/approach – The authors employ the dynamic panel data methodology as compared to alternate techniques owing to the ability of this technique to effectively address the endogeneity problem of some of the independent variables. Findings – The results suggest that foreign bank presence exerts significant spillover effects. At the same time, increased foreign banks appear to impel domestic banks to cut back lending. As regards its impact on growth, the results indicate that although labor does not exert any discernible impact on GDP growth, capital exerts a positive impact on output when foreign bank penetration is high, supportive of the real effects of foreign banks. Originality/value – To the best of the authors’ knowledge, this is one of the early studies for MENA countries to examine this issue in a systematic manner. Most studies of this genre focus on a limited set of banks/countries, thereby limiting their empirical evidence. By focussing on an extended sample of MENA country banks covering an extended period that subsumes the financial crisis, the analysis is also able to shed light as to how foreign presence impacts domestic bank performance.

scholarly journals Bank revenue diversification: its impact on risk and return in Brazilian banks

2019 ◽  
Vol 30 (79) ◽  
pp. 91-106
Author(s):  
Jorge H. L. Ferreira ◽  
Francisco A. M. Zanini ◽  
Tiago W. Alves
Keyword(s):  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Bank Performance ◽  
Revenue Diversification ◽  
Dynamic Panel ◽  
Risk And Return ◽  
The Subject ◽  
The Impact

ABSTRACT The present study aims to determine the impact of bank revenue diversification on Brazilian banks’ risk and return. This strategy has been adopted by banks in several countries, including Brazil. In 2003, noninterest income accounted for 17.80% of the operating revenue of the banks analyzed, and in 2014, this share increased to 27.40%. While many studies have addressed the subject in American, European and Asian banks, it still has not been approached in a sample of Brazilian banks. Since the banking industry is a key variable for the financial system’s stability, it is important to study the factors that affect banks’ risk and return. We analyzed the sample for the period from 2003 to 2014, using dynamic panel data GMM (Generalized Method of Moments) to address endogeneity, heteroscedasticity and autocorrelation problems. Our main results show that noninterest income has a major role in the performance of the banks studied; our analysis of financial intermediation activities showed that loan operations produced better results than trading. Moreover, confirming the hypotheses proposed, noninterest income showed a generally positive impact on return and risk adjusted return for the banks studied. However, against our expectation, noninterest income showed a positive relationship with the risk of these banks (although not statistically significant). It is worth highlighting the control variables, i.e., real interest rate, GDP and bank growth, which were relevant in determining bank performance.

Test of Mediation and Moderation between Employee Empathy and Customers’ Advocacy

2020 ◽  
Author(s):  
Sajjad Ahmad Afridi ◽  
Asad Shahjehan ◽  
Maqsood Haider ◽  
Dr Uzma Munawar
Keyword(s):  
Factor Analysis ◽  
Customer Loyalty ◽  
Service Sector ◽  
Mediating Effect ◽  
First Line ◽  
Private Hospitals ◽  
Proposed Model ◽  
Confirmatory Factor ◽  
The Impact ◽  
Significant Moderator

This study examined the impact of employee empathy on customers’ advocacy directly and indirectly through customers’ loyalty. Moreover, the interacting effect of customers’ trust was verified between the association of customers’ loyalty and advocacy. The attributes of the proposed model were examined in the context of first line employee and patients’ interactions. A total of 220 responses were collected for analysis from the private hospitals of Peshawar. The model fitness was confirmed through confirmatory factor analysis and hypotheses were examined. Findings confirmed the positive and significant impact of employee empathy on customers’ advocacy. Further, the mediating effect was examined and found that loyalty partially mediates employee empathy and customers’ advocacy. Additionally, trust was found a significant moderator between the association of customer loyalty and advocacy. Furthermore, findings revealed that trust based loyalty significantly and positively mediates employee empathy and customers’ advocacy. Findings of the present study provide understanding for the service sector, particularly in healthcare, to enhance customers’ loyalty, advocacy, and trust through service employee’s empathic aptitude. Keywords: Employee empathy, Service Eco-system, Customers’ Loyalty, Customers’ Advocacy, Trust-Based Loyalty, Healthcare, S-D Logic

The impact of duration observations on precision of results GNSS measurements

2017 ◽  
Vol 921 (3) ◽  
pp. 7-13 ◽  
Author(s):  
S.V. Grishko
Keyword(s):  
Measurement Accuracy ◽  
Functional Dependence ◽  
Observation Time ◽  
Satellite Networks ◽  
Satellite Measurements ◽  
Proposed Model ◽  
Actual Error ◽  
Gnss Measurements ◽  
The Impact ◽  
Qualitative Characteristics

This paper shows that the accuracy of relative satellite measurements depend not only on the length of the baseline, as it is regulated by the rating formula of accuracy of GNSS equipment, but also on the duration of observations. As a result of the strict adjustment much redundant satellite networks with different duration of observations obtained covariance matrix of baselines, the most realistic reflecting the actual error of satellite observations. Research of forms of communication of these errors from length of the baseline and duration of its measurement is executed. A significant influence of solar activity on accuracy of satellite measurements, in general, leads to unequal similar series of measurements made at different periods, for example, in the production of monitoring activities. The model of approximation of the functional dependence of accuracy of the baseline from its length and duration of observations having good qualitative characteristics is offered. Based on the proposed model, we analyzed the dynamics of changes in measurement accuracy with an increase in observation time.

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

scholarly journals The impact of quarantine on Covid-19 infections

2021 ◽  
Vol 10 (s1) ◽  
Author(s):  
Pablo Marshall
Keyword(s):  
Health System ◽  
Infection Rate ◽  
District Level ◽  
Infection Model ◽  
Social Distancing ◽  
Proposed Model ◽  
Lower Infection ◽  
The Impact ◽  
Lower Infection Rate ◽  
Over Time

Abstract Objectives: Coronavirushas had profound effects on people’s lives and the economy of many countries, generating controversy between the need to establish quarantines and other social distancing measures to protect people’s health and the need to reactivate the economy. This study proposes and applies a modification of the SIR infection model to describe the evolution of coronavirus infections and to measure the effect of quarantine on the number of people infected. Methods: Two hypotheses, not necessarily mutually exclusive, are proposed for the impact of quarantines. According to the first hypothesis, quarantine reduces the infection rate, delaying new infections over time without modifying the total number of people infected at the end of the wave. The second hypothesis establishes that quarantine reduces the population infected in the wave. The two hypotheses are tested with data for a sample of 10 districts in Santiago, Chile. Results: The results of applying the methodology show that the proposed model describes well the evolution of infections at the district level. The data shows evidence in favor of the first hypothesis, quarantine reduces the infection rate; and not in favor of the second hypothesis, that quarantine reduces the population infected. Districts of higher socio-economic levels have a lower infection rate, and quarantine is more effective. Conclusions: Quarantine, in most districts, does not reduce the total number of people infected in the wave; it only reduces the rate at which they are infected. The reduction in the infection rate avoids peaks that may collapse the health system.

scholarly journals An adaptive social distancing SIR model for COVID-19 disease spreading and forecasting

2021 ◽  
Vol 10 (s1) ◽  
Author(s):  
Said Gounane ◽  
Yassir Barkouch ◽  
Abdelghafour Atlas ◽  
Mostafa Bendahmane ◽  
Fahd Karami ◽  
...  
Keyword(s):  
Mathematical Theory ◽  
Real Data ◽  
Sir Model ◽  
Epidemic Threshold ◽  
Social Distancing ◽  
Sir Epidemic ◽  
Proposed Model ◽  
Disease Spreading ◽  
The Government ◽  
The Impact

Abstract Recently, various mathematical models have been proposed to model COVID-19 outbreak. These models are an effective tool to study the mechanisms of coronavirus spreading and to predict the future course of COVID-19 disease. They are also used to evaluate strategies to control this pandemic. Generally, SIR compartmental models are appropriate for understanding and predicting the dynamics of infectious diseases like COVID-19. The classical SIR model is initially introduced by Kermack and McKendrick (cf. (Anderson, R. M. 1991. “Discussion: the Kermack–McKendrick Epidemic Threshold Theorem.” Bulletin of Mathematical Biology 53 (1): 3–32; Kermack, W. O., and A. G. McKendrick. 1927. “A Contribution to the Mathematical Theory of Epidemics.” Proceedings of the Royal Society 115 (772): 700–21)) to describe the evolution of the susceptible, infected and recovered compartment. Focused on the impact of public policies designed to contain this pandemic, we develop a new nonlinear SIR epidemic problem modeling the spreading of coronavirus under the effect of a social distancing induced by the government measures to stop coronavirus spreading. To find the parameters adopted for each country (for e.g. Germany, Spain, Italy, France, Algeria and Morocco) we fit the proposed model with respect to the actual real data. We also evaluate the government measures in each country with respect to the evolution of the pandemic. Our numerical simulations can be used to provide an effective tool for predicting the spread of the disease.

scholarly journals Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 20
Author(s):  
Osama Alhendi ◽  
József Tóth ◽  
Péter Lengyel ◽  
Péter Balogh
Keyword(s):  
Panel Data ◽  
Cultural Diversity ◽  
English Language ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Social Tolerance ◽  
Solow Model ◽  
Related Equation ◽  
The Impact

This study aims to examine the impact of social tolerance of cultural diversity, and the ability to speak widely spoken languages, on economic performance. Based on the literature, the evidence is still controversial and unclear. Therefore, the study used panel data relating to (99) non-English speaking economies during the time period between 2009 and 2017. Following the augmented Solow model approach, the related equation was expanded, in this study, to include (besides human capital) social tolerance, the English language (as a lingua franca) and the level of openness. The model was estimated using the two-step system GMM approach. The results show that social tolerance of diversity and English language competence have a positive, but insignificant impact on the economy. Regarding policy implications, government and decision-makers can avoid the costs deriving from cultural diversity by adopting democratic and effective institutions that aim to achieve cultural justice and recognition, which, in turn, enhance the level of tolerance, innovation and productivity in the economy. Moreover, to ease intercultural communication within heterogeneous communities, it is necessary to invest in enhancing the quality of second language education which is necessary to make society more tolerant and the country more open to the global economy.

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