Governance and performance: reassessing the pre- crisis situation of European banks

2013 ◽  
pp. 55-72
Keyword(s):  
Crisis Situation ◽  
European Banks ◽  
And Performance

scholarly journals Developments in the european banking industry

2009 ◽  
Author(s):  
Μαρία-Ελένη Αγοράκη
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
Board Structure ◽  
Governance System ◽  
Firm Financial Performance ◽  
Governance Challenges ◽  
The Board Of Directors ◽  
European Banking ◽  
European Banks ◽  
And Performance

Corporate governance has become a leading topic of research, considering its importance as an implement for transparency in financial markets and corporations. On the other hand, the role of the banks is fundamental in any economy that urges for strong corporate governance. Banks are “special” financial institutions posing unique corporate governance challenges. However, very little attention has been paid to the corporate governance of banks. Recent scandals in the financial sector have brought corporate governance at the forefront of academic and supervisory attention. Banks’ versatile role in the economic system has caught regulatory and supervisory interest around the world in an effort to inspire high quality corporate governance standards. Board structure, in the sense of board size and composition, and its impact on corporate performance constitutes an indispensable and, at the same time, prevalent theme of the corporate governance discussion. This thesis examines corporate governance issues in the European banking industry. More specifically, it examines the relationship between board structure and performance, on a sample of 57 large European banks, over the period 2002-2006. The board structure mechanisms applied, are the size of the board of directors and the percentage of non-executives on the board. In addition, this study employs different measures of firm financial performance both market-based and accounting based. Control variables for the bank size and risk as well as for the different corporate governance system are included in the models. The empirical analysis also incorporates a number of bank-specific variables. […]

Revisiting the effect of regulation, supervision and risk on banking performance

2016 ◽  
Vol 24 (1) ◽  
pp. 24-40 ◽  
Author(s):  
Houssem Rachdi ◽  
Faten Ben Bouheni
Keyword(s):  
Design Methodology ◽  
Smooth Transition ◽  
Content Type ◽  
Smooth Transition Regression ◽  
European Banks ◽  
And Performance ◽  
Practical Implications ◽  
Panel Smooth Transition Regression

Purpose – This paper aims to present an analysis of how regulatory and supervisory policies affect risk-performance nexus. Design/methodology/approach – Empirically, on a sample of 60 large European banks over the period 2005-2011, the authors explore this relationship by using the panel smooth transition regression (PSTR) modeling because the nexus between risk and performance is nonlinear and it depends on specific national factors especially regulatory and supervisory policies. Findings – The major finding of this study is that the effect of risk on banking performance is conditional by the improvement of banking governance in Europe. Practical implications – The PSTR helps to account for a change of regime in the effects of risk on performance. Originality/value – This paper explains the use of PSTR modeling.

scholarly journals Does Board Collective Suitability Affect Performance and Risk? Evidence from European Banks

2022 ◽  
Vol 14 (2) ◽  
pp. 1
Author(s):  
Maria Luisa Di Battista ◽  
Laura Nieri ◽  
Marina Resta ◽  
Alessandra Tanda
Keyword(s):  
Linear Combination ◽  
Boards Of Directors ◽  
Capital Requirements ◽  
Self Organizing Maps ◽  
Time Commitment ◽  
Performance Risk ◽  
Non Linear ◽  
European Banks ◽  
And Performance ◽  
The Right

This paper analyzes the features of the boards of large listed European banks and their degree of “collective suitability” as formalized by the Capital Requirements Directives (CRD4) and evaluates whether closer proximity to the collective suitability regulatory paradigm affects banks’ performance, risk and risk-adjusted performance. We leverage Self-Organizing Maps (SOMs) to analyze board features and suitability (i.e. competence, diversity, independence and time commitment) jointly as a multifaceted, non-linear combination of all board variables, rather than evaluating the single variables individually as in the mainstream literature. Using a hand-collected dataset based on numerous features of boards of directors, we find that European banks’ boards can be classified in four different board archetypes characterized by different degrees of collective suitability. Our findings also suggest positive relationships between the degree of collective suitability and performance, risk-adjusted performance, and risk, confirming that the regulatory provisions on governance are going in the right direction, enhancing effective and prudent management.

scholarly journals SUSTAINABLE COMPENSATION AND PERFORMANCE: AN EMPIRICAL ANALYSIS OF EUROPEAN BANKS

2019 ◽  
Vol 07 (01) ◽  
pp. 1940004
Author(s):  
ELISABETTA D’APOLITO ◽  
ANTONIA P. IANNUZZI ◽  
STEFANIA SYLOS LABINI ◽  
EDGARDO SICA
Keyword(s):  
Executive Compensation ◽  
Firm Dynamics ◽  
Compensation Plans ◽  
Sustainability Performance ◽  
European Banks ◽  
And Performance ◽  
Financial Impacts ◽  
Risk Taking Behaviors ◽  
Excessive Risk Taking ◽  
Excessive Risk

This study investigates the financial and non-financial impacts of the use of sustainability criteria in banks’ executive compensation plans. The sample covers all the globally and systemically important European banks over the period 2013–2017. Panel data-fixed effect estimations are employed to mitigate endogeneity concerns and to control for within-firm dynamics. The implementation of sustainable criteria in the banks’ remuneration contracts was found to (i) negatively impact economic performance, (ii) negatively impact the riskiness profile, and (iii) positively impact sustainability performance. These findings have important implications for investors as well as banks. Indeed, these results are encouraging for the use of sustainability targets in executive compensation for restricting excessive risk-taking behaviors and improving sustainability performance.

Banking in Europe

2019 ◽  
pp. 999-1032
Author(s):  
John Goddard ◽  
Philip Molyneux ◽  
John O. S. Wilson
Keyword(s):  
Financial Services ◽  
Sovereign Debt ◽  
Financial Integration ◽  
Banking Industry ◽  
Debt Crisis ◽  
The European Union ◽  
Fully Integrated ◽  
European Banking ◽  
European Banks ◽  
And Performance

This chapter focuses on the evolution of the banking industry in the European Union since the signing of the Treaty of Rome in 1957 to the present day. We provide an overview of developments in the regulation, financial integration, and the structure and performance of the European banking industry. A brief discussion of the global financial crises and their resultant impact on European banks together with coverage of the later Eurozone sovereign debt crisis is also presented, along with structural reforms, and the ongoing progress in creating a fully integrated banking and financial services industry throughout the Eurozone. A major challenge for the industry relates to restoring profitability back to pre-crises levels. At present, many banks remain encumbered by regulatory demands that, while helping their solvency, act as a drag on performance. Given the regulatory and economic environment under which European banks currently operate, their performance will be subdued for some time to come.

Analyzing the Efficiency of European Banks

2014 ◽  
pp. 1151-1178
Author(s):  
Mehmet Hasan Eken ◽  
Suleyman Kale ◽  
Huseyin Selimler
Keyword(s):  
Commercial Banks ◽  
Data Envelopment ◽  
Return On Assets ◽  
Return On Equity ◽  
Developed Economies ◽  
Risk Increase ◽  
Net Interest Margin ◽  
European Banks ◽  
And Performance ◽  
Profitability Ratios

Basic financial and profitability ratios such as net interest margin, return on assets, and return on equity alone do not measure bank performances effectively as they lack the risks associated. Since the success of banks in managing performance is expected to be largely dependent on the correct pricing and management of risks, a proper measurement of efficiency should include the effects of risks. The purpose of this study is to benchmark risk profiles of European commercial banks and performance indicators during the 2006-2009. The research is implemented based on four models by Data Envelopment Analysis with data of 697 banks from 37 countries. The results suggest that there is an extensive inter- and intra-country risk efficiency of banks. Profitability increase is not always directly proportional to risk increase, and the financial crisis substantially decreased the risk efficiency of banks, especially in 2008 in developed economies.

Analyzing the Efficiency of European Banks

2014 ◽  
pp. 28-55
Author(s):  
Mehmet Hasan Eken ◽  
Suleyman Kale ◽  
Huseyin Selimler
Keyword(s):  
Commercial Banks ◽  
Data Envelopment ◽  
Return On Assets ◽  
Return On Equity ◽  
Developed Economies ◽  
Risk Increase ◽  
Net Interest Margin ◽  
European Banks ◽  
And Performance ◽  
Profitability Ratios

Basic financial and profitability ratios such as net interest margin, return on assets, and return on equity alone do not measure bank performances effectively as they lack the risks associated. Since the success of banks in managing performance is expected to be largely dependent on the correct pricing and management of risks, a proper measurement of efficiency should include the effects of risks. The purpose of this study is to benchmark risk profiles of European commercial banks and performance indicators during the 2006-2009. The research is implemented based on four models by Data Envelopment Analysis with data of 697 banks from 37 countries. The results suggest that there is an extensive inter- and intra-country risk efficiency of banks. Profitability increase is not always directly proportional to risk increase, and the financial crisis substantially decreased the risk efficiency of banks, especially in 2008 in developed economies.

Transmission Scanning Electron Microscopy and Energy Analysis with the Siemens ELMISKOP 101

1972 ◽  
Vol 30 ◽  
pp. 450-451
Author(s):  
H. M. Thieringer
Keyword(s):  
Objective Lens ◽  
Transmission Microscopy ◽  
Image Recording ◽  
Mode Of Operation ◽  
Scanning Transmission ◽  
Electron Microscopes ◽  
And Performance ◽  
Convergent Beam ◽  
Ray Path ◽  
Beam Diffraction

It has repeatedly been show that with conventional electron microscopes very fine electron probes can be produced, therefore allowing various micro-techniques such as micro recording, X-ray microanalysis and convergent beam diffraction. In this paper the function and performance of an SIEMENS ELMISKOP 101 used as a scanning transmission microscope (STEM) is described. This mode of operation has some advantages over the conventional transmission microscopy (CTEM) especially for the observation of thick specimen, in spite of somewhat longer image recording times.Fig.1 shows schematically the ray path and the additional electronics of an ELMISKOP 101 working as a STEM. With a point-cathode, and using condensor I and the objective lens as a demagnifying system, an electron probe with a half-width ob about 25 Å and a typical current of 5.10-11 amp at 100 kV can be obtained in the back focal plane of the objective lens.

Angular Resolved Electron Spectroscopy with Parallel Recording

1990 ◽  
Vol 48 (2) ◽  
pp. 370-371
Author(s):  
Huang Min ◽  
P.S. Flora ◽  
C.J. Harland ◽  
J.A. Venables
Keyword(s):  
Electron Spectroscopy ◽  
Low Voltage ◽  
Solid Angle ◽  
Detection System ◽  
Voltage Electron ◽  
Cylindrical Mirror ◽  
Inner Radius ◽  
Channel Plate ◽  
And Performance ◽  
Type Detector

A cylindrical mirror analyser (CMA) has been built with a parallel recording detection system. It is being used for angular resolved electron spectroscopy (ARES) within a SEM. The CMA has been optimised for imaging applications; the inner cylinder contains a magnetically focused and scanned, 30kV, SEM electron-optical column. The CMA has a large inner radius (50.8mm) and a large collection solid angle (Ω > 1sterad). An energy resolution (ΔE/E) of 1-2% has been achieved. The design and performance of the combination SEM/CMA instrument has been described previously and the CMA and detector system has been used for low voltage electron spectroscopy. Here we discuss the use of the CMA for ARES and present some preliminary results.The CMA has been designed for an axis-to-ring focus and uses an annular type detector. This detector consists of a channel-plate/YAG/mirror assembly which is optically coupled to either a photomultiplier for spectroscopy or a TV camera for parallel detection.

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