scholarly journals Examining Risk-Weighted Assets (RWA) Performance after Recent Financial Crisis in Malaysian Banking System

2018 ◽  
Vol 10 (5) ◽  
pp. 129
Author(s):  
Siti Nor Amira Mohamad ◽  
Mohamad Yazis Ali Basah ◽  
Muhammad Ridhwan Ab Aziz
Keyword(s):  
Financial Crisis ◽  
Annual Report ◽  
Global Financial Crisis ◽  
Secondary Analysis ◽  
Banking System ◽  
Risk Measurement ◽  
Quantitative Approach ◽  
Capital Ratios ◽  
Recent Financial Crisis ◽  
The Stability

Until recently, there has been only muted debate on the stability of RWA and after the recent financial crisis, the new regulatory framework was introduced that will enrich the quality and level of capital ratios for the banking system. However these capital ratios required to be based on specific risk measurement that permits for appropriate comparison as these gives new prominence to the stability of the underlying RWA. The aim of this paper is to examine the RWA performance after recent global financial crisis in Malaysian banking system. The study uses quantitative approach to examine in detail the RWA performance from year 2012 to 2016 using secondary analysis of bank’s annual report.

scholarly journals Deposit flows and structure in Serbia

Bankarstvo ◽  
2020 ◽  
Vol 49 (4) ◽  
pp. 68-87
Author(s):  
Milena Lazić ◽  
Ksenija Zorčić
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Banking Regulation ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Deposit Guarantee Schemes

Having drawn attention to the existing banking regulation issues, the Global Financial Crisis also raised awareness of the importance of depositors' confidence for the stability of the financial system, and brought the role and significance of the deposit guarantee schemes to the fore. Serbian economy started experiencing its effects in Q4 2008, in parallel with the global spreading of the crisis. This paper focuses on the fluctuations in deposit levels and structure in the Serbian banking system, between 2008 and 2019. It also aims to underscore the importance and development perspectives of the Serbian deposit guarantee scheme.

Corporate Governance and Risk Aggressiveness of Islamic Banks Against the Recent Financial Crisis

2019 ◽  
Vol 37 (3) ◽  
pp. 171
Author(s):  
Talat Ulussever
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Banking System ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Motivating Factors ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis

This study examines whether the multi-layer corporate governance mode of Islamic banking system can prevent Islamic banks from excessive risk taking and hence protect against its fallibility to the global financial crisis. Employing the random-effects GLS method with two-step GMM method for the robustness check and using the dataset of total 154 banks over the period of 2005–2011, the results show that the corporate governance and financial disclosure indices appear as the motivating factors for risk taking attitudes of Islamic banks. Thus, the governance mechanism of Islamic banks is effective in protecting them against their fallibility to the global financial crisis.

Financial Contagion and Shock Transmission During the Global Financial Crisis

2020 ◽  
pp. 173-197
Author(s):  
Thomas J. Flavin ◽  
Dolores Lagoa-Varela
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Propagation Mechanism ◽  
Financial Contagion ◽  
Shock Transmission ◽  
Cast Doubt ◽  
Recent Financial Crisis ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Investment Portfolios

After the recent financial crisis, the analysis of shock transmission across the financial system has received a great deal of attention. In particular, the role of financial contagion as a shock propagation mechanism has been studied in detail. The globalisation of financial and banking markets has increased the connections and relationship between them. Hence, recent crises have spread all around the world. The stability of linkages between financial assets across different market conditions cast doubt upon the benefits of portfolio diversification. This chapter reviews the extant literature on financial contagion during the global financial crisis and thus provides information for both portfolio managers (when optimizing their investment portfolios) and policymakers (when designing their strategies in order to mitigate spillover effects during crisis periods).

NPLs — The Solution Recipe for Albania

2015 ◽  
Vol 3 (1) ◽  
pp. 48
Author(s):  
Elona Shehu ◽  
Elona Meka
Keyword(s):  
Interest Rate ◽  
Negative Relationship ◽  
Banking System ◽  
Gdp Growth ◽  
System A ◽  
Analysis Technique ◽  
Recent Financial Crisis ◽  
The Stability ◽  
Asset Quality ◽  
Macroeconomic Determinants

The quality of the loan portfolio in Albanian banking system is facing many obstacles during the last decade. In this paper we look at possible determinants of assets quality. During the recent financial crisis commercial banks were confronted with deteriorating asset quality that threatened not only the banking industry, but also the stability of the entire financial system. This study aims to examine the correlation between non-performing loans and the macroeconomic determinants in Albania during the last decade. NPLs are considered to be of a high importance as they represent the high risk exposure of banking system. A solid bank with healthy assets increases the market efficiency. Our approach is based on a panel data regression analysis technique from 2005-2015. Within this methodology this study finds robust evidence on the existing relationship between lending interest rate, real GDP growth and NPLs. We expect to find a negative relationship between lending interest rate and asset quality. Further we assume an inverse relationship between GDP growth and non-performing loans, suggesting that NPLs decrease if the economy is growing. Furthermore this study proposes a solution platform, which looks deeper into the possibility of creating a secondary active market for troubled loans, restructuring the banking system or implementing the Podgorica model. This research paper opens a new lieu of discussion in terms of academic debates and decision-making policies.

Global financial crisis, risk analysis and risk measurement

2009 ◽  
Vol 33 (11) ◽  
pp. 1949-1952 ◽  
Author(s):  
Stijn Claessens ◽  
Aslı Demirgüç-Kunt ◽  
Fariborz Moshirian
Keyword(s):  
Financial Crisis ◽  
Risk Analysis ◽  
Global Financial Crisis ◽  
Risk Measurement

scholarly journals Empty talk? University voices on the Global Financial Crisis

2010 ◽  
Vol 6 (4) ◽  
Author(s):  
Todd Bridgman
Keyword(s):  
Financial Crisis ◽  
News Media ◽  
Global Financial Crisis ◽  
Housing Prices ◽  
Banking System ◽  
Policy Makers ◽  
The Us ◽  
Complex Events ◽  
The Global Financial Crisis ◽  
Company Sector

The global financial crisis (GFC) which began in 2007 with a liquidity squeeze in the US banking system and which continues to play out today has affected us all, whether through the collapse of the finance company sector, rising unemployment, falling housing prices or the recession which followed the initial market crash. The speed and scope of the crisis surprised most experts – policy makers included. Specialists from a myriad of disciplines, from economics and finance to risk management, corporate governance and property, are trying to make sense of what happened, why it happened and what it means for us now and into the future. Members of the public rely on the news media to keep them informed of the crisis as it unfolds and they rely on experts to translate these complex events into a language which they can understand. The GFC is educating us all, and it is important that we all learn from it to avoid making the same mistakes again. 

scholarly journals Credit Rating Strategies: A Study of GCC Banks

2020 ◽  
Author(s):  
Y. Sree Rama Murthy ◽  
Saeed Al-Muharrami
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Credit Rating ◽  
Global Financial Crisis ◽  
Focal Point ◽  
Credit Ratings ◽  
Islamic Banks ◽  
Before And After ◽  
Capital Ratios ◽  
Financial Strategies

<p><b>Purpose</b></p> <p>It is difficult to predict when the next financial crisis will happen. Identifying financial strategies, which help a bank to survive a crisis, is the main purpose of the paper. This paper examines the financial strategies of those banks, which managed to retain good credit ratings both before and after the global financial crisis, so as to throw light on the characteristics of banks which managed to remain steady and stable. </p> Design <p>This paper analyses Fitch credit ratings of 51 banks Islamic and commercial banks operating in GCC, divided into pre global financial crisis (2002 to 2007) and post global financial crisis (2008 to 2013) periods. Trend and behavior of average ratios of top rated banks in both the periods is first attempted before moving to “Ordered Choice Logit” regression method to further analyze the data. </p> <p><b>Findings</b></p> <p>Size and cost management are very important factors in ratings, both before and after the financial crisis. As long as asset quality is under control, liquidity is the focal point in achieving good ratings. Top rated Islamic banks seem to be following a strategy of allowing capital ratios to trend down during a crisis as long as capital is well above the regulatory requirements. </p> <p><b>Originality and Value</b></p> <p>The paper is the first of its kind which examines credit rating strategies of Islamic banks as well as commercial banks. <a>The findings of the paper are extremely important for banks as they throw light on appropriate strategies to be adopted by banks during crises.</a></p>

scholarly journals Credit Rating Strategies: A Study of GCC Banks

2020 ◽  
Author(s):  
Y. Sree Rama Murthy ◽  
Saeed Al-Muharrami
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Credit Rating ◽  
Global Financial Crisis ◽  
Focal Point ◽  
Credit Ratings ◽  
Islamic Banks ◽  
Before And After ◽  
Capital Ratios ◽  
Financial Strategies

<p><b>Purpose</b></p> <p>It is difficult to predict when the next financial crisis will happen. Identifying financial strategies, which help a bank to survive a crisis, is the main purpose of the paper. This paper examines the financial strategies of those banks, which managed to retain good credit ratings both before and after the global financial crisis, so as to throw light on the characteristics of banks which managed to remain steady and stable. </p> Design <p>This paper analyses Fitch credit ratings of 51 banks Islamic and commercial banks operating in GCC, divided into pre global financial crisis (2002 to 2007) and post global financial crisis (2008 to 2013) periods. Trend and behavior of average ratios of top rated banks in both the periods is first attempted before moving to “Ordered Choice Logit” regression method to further analyze the data. </p> <p><b>Findings</b></p> <p>Size and cost management are very important factors in ratings, both before and after the financial crisis. As long as asset quality is under control, liquidity is the focal point in achieving good ratings. Top rated Islamic banks seem to be following a strategy of allowing capital ratios to trend down during a crisis as long as capital is well above the regulatory requirements. </p> <p><b>Originality and Value</b></p> <p>The paper is the first of its kind which examines credit rating strategies of Islamic banks as well as commercial banks. <a>The findings of the paper are extremely important for banks as they throw light on appropriate strategies to be adopted by banks during crises.</a></p>

Koncepcje rozwiązania kryzysu ekonomicznego przez dominujące polskie partie polityczne w latach 2008–2009

2018 ◽  
Vol 19 (254) ◽  
Author(s):  
Marek Barszcz
Keyword(s):  
Financial Crisis ◽  
Gross Domestic Product ◽  
Political Party ◽  
Budget Deficit ◽  
Global Financial Crisis ◽  
Quantitative Approach ◽  
Domestic Product ◽  
The Political ◽  
The Subject

The subject of the article is the political concepts of the last global financial crisis, whichbegan in Poland in 2008. In the study of political party and government demands for theeconomic crisis, a comparative and quantitative approach was used in the form of statisticaldata on growth of Gross Domestic Product and the adopted budget deficit and its relation toGross domestic product. Research covers the years 2008–2009.Keywords: financial crisis, political programs, political declarations

Restructuring Measurements Impact on Bank Risk After the Global Financial Crisis — Empirical Evidence from Vietnam

2021 ◽  
pp. 2150019
Author(s):  
Tu T. T. Tran ◽  
Yen Thi Nguyen
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
The State ◽  
Bank Risk ◽  
The Government ◽  
The Global Financial Crisis ◽  
Bank System ◽  
The Impact

Project 254 signed in November 2011 which is relating to “Restructuring the system of credit institutions in the period of 2011–2015” has been considered as a milestone in marking the Vietnamese government to prevent the influence of the financial crisis of 2008. This paper identifies hypotheses evaluating the impact of restructuring measurements on the risk of the Vietnamese’s commercial banks in 10 years, starting from 2008. Using the OLS regression method for analysis by running Eviews and ANOVA test in SPSS with a unique database of 216 observations of 31 commercial banks in Vietnam, it was found that: (i) The bail-out activities of the State Bank of Vietnam in 2015 does not influence on bank risk, (ii) The mergers and acquisitions (M&A) do not support the bank to reduce risk, it increases the risk for acquiring banks, (iii) The global crisis 2008 exerts dire consequence on the bank system in Vietnam, (iv) There is the difference of risk among the groups of the bank experiencing a different number of years of operation. Basing on this result, the paper also makes recommendations to the Government, The State Bank of Vietnam and the commercial banks for effective risk management toward the development of the Vietnamese banking system.

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