scholarly journals Behavioural Economic Tools as a Way to Increase Customers’ Response in the Banking Sector

2020 ◽  
pp. 311-327
Keyword(s):  
World Economy ◽  
Banking Sector ◽  
External Factor ◽  
Empirical Studies ◽  
Behavioural Economics ◽  
Theoretical Research ◽  
Behavioural Finance ◽  
Literature Overview ◽  
Banking Market ◽  
Economic Tools

The proper functioning of the banking sector is of great importance to the national and world economy. Ever since the crisis of 2008 banks have experienced a decrease in revenue for various reasons. This decline is worrying and while external factors cannot be altered by financial institutions, their effect can be reduced with the formulation and application of a focused marketing strategy. The purpose of this article is to determine whether implementation of behavioural finance can attract customers and improve sales in a sector with seemingly decreasing potential and growing competition. The research topic is the change in customer behaviour as a result of implementing behavioural techniques (nudges). The object of analysis is a leading bank in Bulgaria and its interaction with the customers. There are three main tasks in this article: – to show how the economic crisis as an external factor has contributed to changes in regulation and consolidation on the Bulgarian banking market; – to conduct a literature overview of some of the behavioural economics aspects, which can be incorporated in banking practices; – to present the results of a Bulgarian bank, which manages to improve the outcome of its campaigns and to apply the idea behind the customer decisionmaking matrix in its marketing mix by employing the tools defined in the literature overview. There is an abundance of theoretical research on behavioural economics, far less evidence from empirical studies in various sectors and none from the banking sector. The aim of this article is to shed some light on the topic. The major assumption held in this study is that the use of behavioural finance tools in banks’ marketing policies can increase customer response rate and help increase sales.

scholarly journals Merger & acquisition in the banking sector

2020 ◽  
pp. 19-23
Author(s):  
Liudmyla SKALOZUB
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Markets ◽  
World Economy ◽  
Banking Sector ◽  
Banking System ◽  
Advantages And Disadvantages ◽  
Current State ◽  
Banking Market ◽  
European Banking ◽  
Banking Institutions

Nowadays there is a considerable amount of information in the literature about mergers and acquisitions of companies in various business fields which gives the world economy an incentive for mergers and acquisitions of financial institutions – banks, which, having large assets, control economic processes in individual countries. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The purpose of the article is to investigate the processes of mergers and acquisitions of banks in the Ukrainian and European financial markets. The current market conditions dictate strict rules not only for entry, but also for the functioning of banks in their segment. Globalization processes in today's world are one of the prerequisites for increasing the number of mergers and acquisitions concluded in the banking sector. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The merger or acquisition agreements concluded on the European banking market have been analyzed. By analyzing the concluded M&A agreements in the European banking market, we can say that the value of such agreements is gradually reduced over the period 2012-2017. The practice of merger and acquisition agreements in the banking sector of Ukraine is analyzed. Crises in the banking sector and the Ukrainian economy as a whole make it possible to say that investors are less interested in the domestic banking system, which indicates that it is impossible to increase the number of mergers and acquisitions of domestic banking institutions. It is worth noting that there are currently about 100 banks in Ukraine that are declared insolvent, and a significant amount of non-performing loans can be a serious deterrent to increasing M&A transactions.

scholarly journals Sustainability of Public Finance through the Lens of Transfer Prices and Their Associated Risks: An Empirical Research

2021 ◽  
Vol 13 (12) ◽  
pp. 6837
Author(s):  
Mihaela Paraschiva Luca ◽  
Ileana Tache
Keyword(s):  
Quantitative Research ◽  
World Economy ◽  
Transfer Pricing ◽  
Empirical Studies ◽  
Theoretical Research ◽  
Computer Assisted ◽  
Tax Reforms ◽  
The Face ◽  
Transfer Prices ◽  
Economic Reality

At a time when the world economy is being affected by the COVID-19 pandemic, we are more aware than ever of the importance of the sustainability of public finances. This paper outlines its importance by discussing transfer prices and their fiscal associated risks. In the current economic context, marked by the crisis and by an increasing pressure from the control authorities on companies, no matter how important the theoretical research, it cannot capture very well the pulse of practical activity. Under these conditions, empirical studies are becoming increasingly important, requiring an approach to practical economic reality. In order to analyze the way in which companies that carry out transactions with affiliated parties approach the transfer prices and the risks related to them, we conducted an empirical, quantitative research using the CAWI method (Computer Assisted Web Interviewing) and the questionnaire. The research results demonstrate an awareness by the responding companies of the importance of transfer pricing and their risks, the transactions most prone to control in this area being those of financing within the group, followed equally by management services, consulting, assistance and transactions with goods. In the face of legislation that leaves room for interpretation and a high number of controls on transfer pricing, a small number of companies participating in the research have used the Advance Price Agreement as a tool to reduce the tax risk associated with transfer pricing. Companies also face uncertainty about how ongoing global tax reforms will affect them in the coming period.

Optimum Structure of the Banking Market: How Many Banks Are Necessary for Russia?

2006 ◽  
pp. 75-92 ◽  
Author(s):  
S. Moiseev
Keyword(s):  
Banking Sector ◽  
Optimum Structure ◽  
Population Number ◽  
The Third ◽  
Banking Market ◽  
The World ◽  
The Usa ◽  
Per Capita ◽  
The Empirical Analysis ◽  
Equilibrium Number

The number of classical banks in the world has reduced. In the majority of countries the number of banks does not exceed 200. The uniqueness of the Russian banking sector is that in this respect it takes the third place in the world after the USA and Germany. The paper reviews the conclusions of the economic theory about the optimum structure of the banking market. The empirical analysis shows that the number of banks in a country is influenced by the size of its territory, population number and GDP per capita. Our econometric estimate is that the equilibrium number of banks in Russia should be in a range of 180-220 units.

Analysis of the Weak Soil Behavior, Modified Through Cementation

2019 ◽  
Vol 7 (1) ◽  
pp. 27-36
Author(s):  
Nadiia Kopiika ◽  
Yuriy Petrenko
Keyword(s):  
Soil Stabilization ◽  
Theoretical Research ◽  
Soil Behavior ◽  
Weak Soil ◽  
Calculation Technique ◽  
Literature Overview ◽  
Weak Soils ◽  
Chemical Technique ◽  
Increasing Demand

The purpose of the study is to conduct thorough theoretical research and literature overview regarding possible ways of soil stabilization on the basis of this practice increasing demand. In particular an emphasis is made on the chemical technique for weak soils strengthening, due to its prevalence and various practical and economic advantages. Great amount of promiscuous data was analyzed and organized; in addition on its basis an attempt is made to provide convincing calculation technique for further usage in engineering soils` stabilization practice. Besides, various factors which could influence on the results` accuracy are identified with corresponding recommendations for further possible research on this issue.

Agricultural Trade and Ultra-Poor in Pakistan: An Application of CGE Model

2021 ◽  
pp. 097639962110106
Author(s):  
Saud Ahmad ◽  
Muhammad Aamir Khan ◽  
Usman Mustafa
Keyword(s):  
Income Inequality ◽  
World Economy ◽  
Empirical Studies ◽  
Real Income ◽  
Agricultural Trade ◽  
Public Welfare ◽  
Trade Policies ◽  
Agriculture Sector ◽  
Lower Extent ◽  
Potential Impact

In the modern integrated world, the synthesis of countries for trade is often viewed as a crucial source of income and growth disparities across nations. Well-known channels of economic theory can trace the growth effects of trade. However, there is a substantial conflict among empirical studies regarding gains from agricultural trade. Therefore, this study examines the economy-wide impact of agriculture trade liberalization/protection on agriculture production, agriculture trade, income redistribution and public welfare. An extension of the GTAP model known as MyGTAP is employed and the world economy is disaggregated into 20 regions and 11 sectors with Pakistan as a home country. Further, results explore greater gains from an increased level of liberalization towards the agriculture sector in terms of agriculture production, real factors’ wage, terms of trade and household welfare. Rural households enjoy relatively higher real income and income inequality declines in Pakistan in the case of liberalization and protection. However, comparatively protectionism reduces inequality by the lower extent, and said study also points out that neither change in real gross domestic product nor public welfare turns out to be a good indicator of assessing potential impact of trade policies on income inequality.

Transforming the scope of the bank through fintechs: toward a modularized network governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Piotr Łasak ◽  
Marta Gancarczyk
Keyword(s):  
Organizational Design ◽  
Banking Sector ◽  
Transaction Cost Economics ◽  
Empirical Studies ◽  
Theoretical Framework ◽  
Network Governance ◽  
Content Type ◽  
Ict Adoption ◽  
Conceptual Foundations ◽  
Practical Implications

PurposeThe aim of this paper is to develop a theoretical framework of the transformation of the bank's scope driven by fintechs.Design/methodology/approachThe conceptual foundations for a comprehensive transformation of the bank governance through financial technologies (fintechs) are underexplored. In order to develop such foundations, the authors adopt transaction cost economics (TCE), the concepts of external enablers and a modular organizational design, as well as a systematic literature review.FindingsThe results point to three scenarios of the banks' scope, depending on the adopted technological mechanisms and related effects that change the characteristics of organizational activities, justifying new bank boundaries. The most advanced application of fintechs results in a modularized network scenario leading to the emergence of financial ecosystems.Research limitations/implicationsThe proposed micro-perspective of decisional rules in an individual organization is unique in the current literature that predominantly focuses on the banking sector at large. The identified scenarios are valuable for solid theoretical and empirical grounding and can be further exploited in decision simulations and empirical studies.Practical implicationsThe proposed theoretical framework points to the rationales and consequences of adopted technologies for the boundaries of a bank organization.Originality/valueThis paper provides three contributions to the literature on technology-driven transformations of organizations with a focus on banks. First, the authors elaborate a theoretical framework for establishing the bank's boundaries in response to the expansion of financial technologies. Second, the authors add to the knowledge accumulation in the area of organizational transformations based on the ICT adoption, in particular, to the literature on the modular organizational design. Third, the authors contribute to the decision-maker practice by proposing the alternative options of banks' scope transformed through fintechs.

scholarly journals The competitiveness of Ukraine’s banks in the world banking market

2018 ◽  
pp. 81-98
Author(s):  
Yevheniia Voinova
Keyword(s):  
Banking Sector ◽  
Foreign Capital ◽  
Internet Banking ◽  
Global Market ◽  
Banking Services ◽  
Banking Market ◽  
The World ◽  
Start Ups ◽  
Regional Banks

The article examines the market of banking services in Ukraine through comparing indicators of competitiveness of Ukrainian banks and banks with foreign capital in the domestic market and global market. Taking into account the network-type structure of banks, six groups of banks are determined according to the degree of branching, namely: systemically important banks, all-Ukrainian equilibrium banks, all-Ukrainian concentrated banks, regional banks, local individual banks, closed banks. A particular emphasis is placed on a range of banking services and pricing policies of banks groups. The classification of factors developed by M. Yokoi-Arai and N. Yoshino is used in order to assess the competitiveness of Ukraine’s banks in terms of effectiveness and volume of services provided, information technology and resource management. About fifty indicators of banking activites performed by groups of banks with domestic and foreign capital are compared, and also best-performing banks in these groups are described based on the analysis of 82 operating banks in Ukraine. The article presents evidence that, under current conditions in Ukraine, banks with domestic and foreign capital are represented in all categories of banking services. It is pointed out that the highest competitiveness of Ukraine’s banks is observed in developing the network of ATM terminals, promoting Internet banking and, thus, a wide coverage of banking services. It is noted that Ukraine’s banks are less competitive in providing services for big businesses, international companies, funding projects, innovations and start-ups. The findings of the research paper can be useful for educational purposes as well as for professionals in the banking sector.

FREE TRADE AND GROWTH IN THE WORLD ECONOMY

2011 ◽  
Vol 56 (03) ◽  
pp. 291-306 ◽  
Author(s):  
PETER LLOYD
Keyword(s):  
Free Trade ◽  
World Economy ◽  
Empirical Studies ◽  
Growth Effect ◽  
Limited Effect ◽  
Beneficial Effects ◽  
The World ◽  
The Relationship ◽  
Level Effect ◽  
Trade And Growth

This paper explores the relationship between free trade and the rate of economic growth. It is argued that freeing trade has both a level effect and a growth effect. Most empirical studies ignore the growth effect and, therefore, considerably understate the beneficial effects of freeing trade. Progress towards free trade in the GATT/WTO era is far from complete. Regionalism has had a limited effect on freeing trade globally. The completion of the Doha Development Round is needed to restart trade as the engine of growth.

Role of Gender in Counterproductive Work Behavior

2020 ◽  
pp. 79-99
Author(s):  
Tanvi Kiran ◽  
Anubhuti Sharma
Keyword(s):  
Banking Sector ◽  
Empirical Studies ◽  
Counterproductive Work Behavior ◽  
Work Behavior ◽  
Academic Interest ◽  
Production Deviance ◽  
Bank Employees ◽  
Behavioral Activities

Deviance at the workplace is the displaying of counterproductive work behavior by the employees that includes in its ambit a set of behavioral activities that jeopardize, sabotage, and undermine the motives, goals, objectives, and interests of the organization at large. The present study makes a modest attempt to study the occurrence of negative deviance in the banking sector through the use of Counterproductive Work Behavior Checklist (CWD-C). The choice of this particular sector has been motivated by the researchers' academic interest and due to the presence of limited number of empirical studies in this area. Further, the study aims to identify the role of gender with regard to the occurrence of counterproductive work behavior among the bank employees. The results of the study point out female bank employees were found to be engaging in abuse and theft significantly more than the male employees, while the men were found to be significantly more likely to commit production deviance than their female counterparts.

Financial Market Integration and EMU

2020 ◽  
Author(s):  
Kern Alexander
Keyword(s):  
Market Integration ◽  
Banking Sector ◽  
Financial Integration ◽  
Banking Union ◽  
Shadow Banking ◽  
The European Union ◽  
Financial Market Integration ◽  
Banking Market ◽  
Capital Markets Union ◽  
European Banking

This chapter discusses the evolution of the market structure in European banking and the level of financial integration in the Eurozone and the interaction with financial regulatory developments. The chapter will address how the creation of the Banking Union’s Single Supervisory Mechanism (SSM) has affected banking market integration in the Eurozone. The chapter also raises related issues concerning monetary policy and banking supervision and some of the challenges in discharging these responsibilities within the Banking Union. This chapter also analyses the Capital Markets Union (CMU) proposal in respect of its important objective to increase the supply of credit from non-bank financial intermediaries to the economy of the European Union (EU) while also raising important prudential regulatory concerns concerning the risks raised by the shadow banking sector.

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