scholarly journals An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3178
Author(s):  
Larissa M. Batrancea
Keyword(s):  
United States ◽  
Financial Performance ◽  
United States Of America ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Strong Impact ◽  
Investment Policies ◽  
Interest Income ◽  
The 2008 Financial Crisis ◽  
High Level

The 2008 financial crisis had a major impact on financial markets, especially on the banking system. Mortgage-backed security investments were among the causes that determined the tremendous shortage of cash. Before the crisis, American banks were considered important investors on these markets, as indicated by the structure of their assets and liabilities. How grounded were their investment decisions? To answer this question, the study examined the influence of financial performance on bank assets and liabilities of the most important 45 banks from Europe and Israel, United States of America, and Canada during the period 2006–2020. Through a panel generalized method of moments approach, empirical results indicated a strong impact of bank assets and liabilities ratios on financial performance indicators. The study emphasizes that bank managers, researchers, regulators, and supervisors should consider investment policies, especially for bank assets and liabilities. Therefore, a high level of interest income is an important tool for increasing assets and liabilities. At the same time, fees are other levers that could improve bank benefits and ultimately develop the lending activity when interest income enters a descending trend.

scholarly journals Determinants of Profitability in the Banking Sector: An Analysis of Post-Soviet Countries

Economies ◽  
2018 ◽  
Vol 6 (3) ◽  
pp. 41 ◽  
Author(s):  
Serhat Yüksel ◽  
Shahriyar Mukhtarov ◽  
Elvin Mammadov ◽  
Mustafa Özsarı
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Credit Card ◽  
Fixed Effects ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Annual Data ◽  
Bank Profitability ◽  
Interest Income

The purpose of this paper is to identify the determinants of bank profitability in 13 post-Soviet countries. Within this scope, annual data between 1996 and 2016 is analyzed by using fixed effects panel regression and the Generalized Method of Moments (GMM). It is concluded that loan amount, non-interest income and economic growth are significant indicators of profitability. Moreover, the 2008 global mortgage crisis has a negative influence on bank profitability in post-Soviet countries. According to the estimation results, there is a positive relationship between non-interest income and economic growth with profitability. This result shows that when non-interest income of the banks increases, such as credit card fees and commission, it affects the financial performance of the banks, positively, and contributes to bank profitability. Another result of this study is that economic growth positively influences bank profitability. This result allows us to conclude that higher GDP comes with higher bank profitability for post-Soviet countries. Lastly, there is a negative relationship between loan-to-GDP ratio and profitability of the banks in post-Soviet countries. This means that when the ratio of total loans to GDP increases, it affects financial performance of the banks in a negative way. While considering this result, it is recommended that banks in post-Soviet countries should focus on ways to increase their non-interest income. Additionally, it is also significant for these banks to be careful and risk averse when lending to their customers.

Impact of Noninterest Income on Bank Risk-Taking and Bank Lending Spread

2021 ◽  
Author(s):  
Muhammad Jawad ◽  
Munazza Naz ◽  
Muhammad Aftab Shamsi
Keyword(s):  
Risk Taking ◽  
Regulatory Authority ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Bank Lending ◽  
Bank Risk ◽  
Risky Assets ◽  
Interest Income ◽  
Regulatory Perspective ◽  
The Impact

This study investigates the impact of diversification between traditional margin income and nontraditional income (noninterest-based income) on bank risk-taking and bank lending spread for banks operating in Pakistan. Bank risk is measured with the nonperforming loan ratio and bank [Formula: see text]-score. Data of this study is obtained from financial statements, which are an annual publication of State Bank of Pakistan, for the period 2006–2016 for 52 banks in Pakistan. Panel regression with the generalized method of moments (GMM) estimator is employed. The study reveals that an increase in noninterest income increases bank risk-taking (spending on highly risky assets), as noninterest income is riskier than interest income. It is also revealed that banks with greater dependence on noninterest income may grant a loan with lower lending spread. These results have implications for the betterment of the banking system, regulatory authority, and stakeholders as well. From a regulatory perspective, the study provides guidelines for making rules and regulations to control and monitor the dependence on noninterest income as well as on interest income. Pakistan banks regulatory authority should focus on the increase in disclosure of the composition of noninterest income and this disclosure would increase understanding of changing environment of banking in Pakistan.

Continental Divide: The Canadian Banking and Currency Laws of 1871 in the Mirror of the United States

2012 ◽  
Vol 13 (3) ◽  
pp. 455-503 ◽  
Author(s):  
Andrew Smith
Keyword(s):  
United States ◽  
Banking System ◽  
The United States ◽  
Bank Failures ◽  
Financial History ◽  
Global Competitiveness ◽  
Continental Divide ◽  
The World ◽  
The 2008 Financial Crisis ◽  
Canadian Banking

In the wake of the 2008 financial crisis, international observers praised the stability of Canada's banks. When financial institutions in the United States and the United Kingdom collapsed, Canada did not experience any bank failures. The World Economic Forum'sGlobal Competitiveness Reportrated Canada's banking system as the most sound in the world. Historically, bank failures have been quite rare in Canada. Some authors argue that the stabilizing features of Canada's financial system were established in the first five years after the creation of the Canadian nation-state in 1867. This paper will examine the making of the Canadian banking law in 1871, an event widely regarded as a crucial turning point in Canadian financial history.

scholarly journals Peningkatan Market Share Bank Syariah Melalui Kinerja Keuangan; Antara Moderasi Efisiensi Dan Risk-Taking Behavior

2020 ◽  
Vol 4 (2) ◽  
pp. 118
Author(s):  
Abdillah Ubaidi
Keyword(s):  
Financial Performance ◽  
Market Share ◽  
Risk Taking ◽  
Banking Industry ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Monthly Data ◽  
Business Units ◽  
Risk Taking Behavior ◽  
Risk Taker

<p><em>Conducting analysis of efficiency, risk-taking behavior and market share of </em><em>Islamic</em><em> Banking in Indonesia. Conducted to answer the question of the still low market share of sharia banking in the national banking industry. The presence of Sharia Banking on dual banking system is still minimal.</em><em> </em><em>The monthly data sample of 34 Shariah Bank in Indonesia (11 Sharia Commercial Banks, 13 Sharia Business Units) is used to test the research hypothesis for the period from 2014 to 2017 using the estimator Generalized Method of Moments.</em><em> </em><em>The results show that there is a significant relationship and / or influence between the efficiency, risk-taking behavior and market share of Sharia Banking in Indonesia. Effect of moderation Efficiency and Risk-Taker Behavior on Financial Performance of Sharia Banking.</em><em> </em><em>Research limitations/ implications - Firstly, this paper focuses only on the sharia banking industry in Indonesia that adopts pro-active models, and therefore, expanding the investigation to include countries adopting different models may provide a better and more comprehensive view of the correlation between efficiency, risk-taking behavior and market share of Sharia Banking. Secondly, there is a need for more empirical data to be used, such as 7 years or more.</em><em> </em><em>This paper provides empirical evidence to regulators and policymakers in Indonesia, to understand how to increase the market share of sharia banking to the national banking industry. Furthermore, the sharia banking shareholder intends to increase the market share of sharia banking as one of the pillars of sharia finance in Indonesia which continues to grow.</em><em> </em><em>Previous studies have only discussed financial performance, efficiency and risk-taker behaviors without linking to market share levels. Because the discussion of market share is usually monopolized marketing studies..</em></p>

scholarly journals CORRUPTION: A PROBLEM IN ROMANIAN PUBLIC PROCUREMENT

2020 ◽  
Vol 10 (2) ◽  
pp. 63-83
Author(s):  
Ionel Preda ◽  
Keyword(s):  
United States ◽  
European Union ◽  
High Risk ◽  
United States Of America ◽  
Public Procurement ◽  
Frequency Of Occurrence ◽  
The European Union ◽  
Contract Costs ◽  
High Level ◽  
Very High

Even though the relevance of corruption is very high in all fields of activity, the specialized literature in the field of public procurement has paid very little or even no attention to this crucial phenomenon. The field of public procurement presents a high risk of corruption, the evidence being the large number of high-level corruption cases in several Member States of the European Union. The study presents the specialized literature related to corruption in public procurement in the European Union and United States of America, analyzes the level of corruption in public procurement in Romania, the causes that generate corruption and the main measures to combat it. The article also presents the results of a survey realized among the purchasers from Romania which addresses the main elements of corruption in the field of public procurement. The survey analyzes issues related to corruption in public procurement in Romania, such as: level of corruption, control over corruption, frequency of occurrence of corruption acts, procurement procedures most prone to corruption, characteristics of the procurement procedures that favors the occurrence of corruption, most widespread way of manifesting corruption, most important consequence of corruption, percentage of increasing contract costs due to corruption, most effective anti-corruption measure.

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