scholarly journals DETERMINANTS OF CREDIT GROWTH IN BANKING SECTOR OF BOSNIA AND HERZEGOVINA // DETERMINANTE KREDITNOG RASTA U BANKARSKOM SEKTORU BOSNE I HERCEGOVINE

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Dragan Jović ◽  
Miodrag Jandrić
Keyword(s):  
Economic Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Positive Impact ◽  
Time Lag ◽  
Point Of View ◽  
Credit Growth ◽  
Domestic Banks

Credit growth is function of several variables, which are from the domestic banks point of view internal and external. NPL and deposits, on bank level, nominal GDP growth, and inflation have biggest impact on credit growth. Credit growth is under direct and strong influence of global crises and of ECB monetary policy, and these variables influence is with time lag. Between factors which also influence credit growth, but which influence is not so statistically significant, like previous factors, distinguish themselves capitalization ratio and return on asset on banking sector level. Possibility of doing banking business without deposit insurance, putting limits on deposit rates and on deposit growth could contribute to decrease in banks deposit variability, and to smoothness in credit growth path, as well as insisting on capital ratio rising. If domestic economic policy want to manage credit growth in domestic banking sector it is necessary to increase quality of prudential regulation, to improve NPL management and credit risk management and to modify monetary regime, by granting permission to domestic central bank to provide credits to residents. Without providing credit to residents by Central bank of Bosnia and Herzegovina, it is not possible to achieve price stability and it is not possible to decrease deflationary pressure. Increase in capital ratio has positive impact on credit growth, and vice versa, and that is way increase in capitalization must object of permanent supervision. Since activity and profitability of systematically important banks are one of credit growth generator, banking supervision has to have particular strategy for big banks resolution. Low influence of previous credit growth on current credit growth is motive for active countercyclical economic policy.

scholarly journals THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 12 (24) ◽  
Author(s):  
Goran Mitrović ◽  
Živko Erceg
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Foreign Banks ◽  
Dayton Agreement ◽  
The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

Conclusion

2017 ◽  
Author(s):  
Rachel A. Epstein
Keyword(s):  
Economic Policy ◽  
Global Economy ◽  
Banking Sector ◽  
Banking Union ◽  
Major Powers ◽  
European Banking Union ◽  
Catching Up ◽  
European Banking ◽  
Domestic Banks

The study’s findings from Europe have implications for other major powers, including that: (1) banking sector protectionism became increasingly costly given other liberalizing trends; (2) foreign-owned bank subsidiaries can provide more stable funding in crises than alternative foreign or even domestic bank activity; (3) foreign domination in finance limited catching up in the global economy, but in fact few states showed the capacity to exploit domestic banks for national goals; and (4) centralized bank governance through European Banking Union weakened bank–state ties in Europe, and elevated the role of markets there. This chapter analyzes the relevance of the findings for the BRICS (Brazil, Russia, India, China, and South Africa). China is perhaps the clearest case of a country struggling to both liberalize and retain the economic policy autonomy associated with a largely state-controlled financial system. The conclusion specifies the broader transformation in bank–state ties, but also its limits.

scholarly journals Does the oligopolistic position of banks affect the performance of the banking sector in the Federation of Bosnia and Herzegovina?

2021 ◽  
Vol 13 (2) ◽  
pp. 113-131
Author(s):  
Almir Alihodžić
Keyword(s):  
Growth Rate ◽  
Bosnia And Herzegovina ◽  
Concentration Index ◽  
Banking Sector ◽  
Positive Impact ◽  
Market Concentration ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Negative Effect

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while there has been an increased concentration of some larger banks in the system. The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model. The results showed that the foreign-owned Banks (FB) variable has a positive impact on the variable return on Assets (ROA), while the variables bank size (BS) and market concentration index for loans (HHI) have a negative impact. The result also showed that the two variables the growth rate of total loans (GRTL) as well as foreign-owned banks (FB) have a positive impact on the variable return on equity (ROE), while the variables market concentration index for loans (HHI) and bank size (BS) have a negative effect. The third result is that the variable net interest margin (NIM) has the strongest positive impact on the two variables foreign-owned banks (FB) and credit growth rate (GRTL), while concentrations for credit placements (HHI) and bank size (BS) have a negative effect.

scholarly journals Market transformations in the banking sector of Ukraine: a view through the prism of "non-economic" policy

2021 ◽  
Vol 2021 (2) ◽  
pp. 74-88
Author(s):  
Drobiazko Anatoliy ◽  
◽  
Keyword(s):  
Economic Policy ◽  
Banking Sector ◽  
Point Of View ◽  
Economic Losses ◽  
Ruling Elite ◽  
Economic Point ◽  
Economies In Transition ◽  
Negative Effect ◽  
The Impact

The author analyzes the processes occurring in the banking sector of Ukraine from the standpoint of "non-economic" policy, the theory of which is currently being discussed in modern economics. According to the author, the impact of such a policy does not allow Ukraine to find the optimal strategy for its development, in particular regarding the regulation in the banking sector. One of the reasons for this is the shortage of public administration, which is generally characteristic of countries with economies in transition. It is proved that the NBU's "settlement" of the banking market after 2014 was extremely unsuccessful from an economic point of view. Quantitative estimates of losses suffered by the Ukrainian economy as a result of the campaign to clean up the banking sector during 2014-2016 are presented and analyzed. Through the prism of the typology of "non-economic" policy, the author considers the processes of demonetization of Ukraine's economy and current problems of the national stock market. It is determined that during the reforms in the banking sector, the adoption by the ruling elite, as well as the by the judiciary, of a series of uncalculated and unconsidered decisions poorly consistent with Ukraine’s specific features led to destructive consequences, which affect the long-term development of the country's economy. In addition to economic losses (more than 10 billion USD) and the planting of a ticking bomb under the future lending, the "bankfall" brought about social damage, which is the loss, by the most active segment of the population, of the confidence in the economic strategy proposed by government officials. In recent years, after the crisis of 2014, no banking institutions have been registered, while the number of banks’ separate branches is rapidly declining, along with the corresponding number of jobs. The author concludes that the current practice of selling liquidation assets of bankrupt banks will have a long-term negative effect, because it benefited bad creditors who bought their overdue debt at a discount through third parties, while the most active part of the population (depositors "200+" and small and medium businesses) suffered losses and lost confidence in banks. It is noted that the main reason for Ukraine to choose the "non-economic" policy is the separation of the management decisions from real socio-economic needs. As a result, the economic decisions initiated in this area not only cause material damage, but also hinder this country’s civilizational advancement.

Diversity and return: the impact of diversity of board members’ education on performance

2019 ◽  
Vol 19 (4) ◽  
pp. 824-842 ◽  
Author(s):  
Isaac Boadi ◽  
Daniel Osarfo
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Positive Impact ◽  
Sub Saharan Africa ◽  
Convergence Theory ◽  
Board Members ◽  
Content Type ◽  
Sub Saharan ◽  
Domestic Banks ◽  
The Impact

Purpose This paper aims to examine the impact of diversity of board members’ educational qualifications on the financial performance of banks in Ghana. Design/methodology/approach The present study applies system generalized methods of moments as an econometric model in carrying out the analysis. The study yielded a usable sample of 28 banks spanning from 2001 to 2016. Findings The paper concludes that the Ghanaian banking sector profit diverges and invalidates the convergence theory or “catch-up effect”. Specifically, educational qualifications of board members are relevant to banks’ financial performance. Across all the models used, board members with a first degree have a significant positive impact on performance. The opposite is the case for board members with Doctor of Philosophy (PhD). Research limitations/implications Unobservable characteristics such as entrepreneurial skills and intellectual competence experiences are excluded from the study because of the difficulties in measuring these variables. Notwithstanding, the exclusion of these characteristics does not invalidate the general outcome of the study. Originality/value The present study examines the impact of diversity of board members’ educational qualification on financial performance in the context of Sub-Saharan Africa, particularly Ghana. It also extends the existing literature by decomposing the banking sector into listed, non-listed, foreign and domestic banks.

scholarly journals Factors Affecting Share Prices of Banking sector of Pakistan

2016 ◽  
Vol 3 (1) ◽  
pp. 1-5
Author(s):  
Muhammad Ahsan Chhipa ◽  
Agha Ammad Nabi
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Stock Exchange ◽  
Intrinsic Value ◽  
Point Of View ◽  
Share Price ◽  
Dividend Yield ◽  
Return On Assets ◽  
Share Prices ◽  
The Impact

It is very important to understand the value of share prices as it will be beneficial for both investor as well as the company. By understanding those determinants that can effect the share price, the investor will be in a position to make various profitable investment decisions. Whereas, from the company’s point of view it helps to know about the Intrinsic value of company’s shares. The purpose of this research was to find out the impact of share price on banking sector in Pakistan, as it shows the positive correlation of leverage on share price of banking sector registered in Pakistan Stock Exchange. The data was extracted from the State bank of Pakistan official Website and from companies financial data starting from 2010 till 2017 of 20 companies in Banking sectors registered in Pakistan Stock Exchange (PSX). While share price have 4 control variables (Earning per Share, Dividend Yield, Return on Assets and Assets Growth) all the results shows low variation of share price on Banking sector in Pakistan. We used Simple regression analysis and the results shows the positive impact of earning per share variable that shows impact on share price while dividend yield has positive impact on share price, assets growth has positive impact on share price, and return on assets has positive impact on share price.

Russian Central Bank to amend bank rescue programme

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Banking Sector ◽  
Credit Expansion ◽  
Loan Default ◽  
Credit Growth ◽  
Content Type ◽  
Default Rates

Subject Bank rescues, failures and regulation in Russia. Significance The banking sector has shown positive dynamics in 2017: increased profitability and capitalisation, and a resumption in credit growth. The Central Bank of Russia (CBR) felt obliged to step in and rescue the large Otkritie and B&N banks, raising questions about why they were allowed to expand unsustainably. Impacts Faster credit growth is essential to boosting economic growth above present modest levels. High loan-default rates in sectors such as construction and trade will hamper credit expansion and delay their recovery. The pervasive state presence in the banking sector will distort and reduce competition.

scholarly journals MARKET TRANSFORMATIONS IN THE BANKING SECTOR OF UKRAINE: A VIEW THROUGH THE PRISM OF "NON-ECONOMIC" POLICY

2021 ◽  
Vol 2021 (2) ◽  
pp. 85-100
Author(s):  
Anatoliy Drobiazko ◽  
◽  
Keyword(s):  
Economic Policy ◽  
Banking Sector ◽  
Point Of View ◽  
Economic Losses ◽  
Ruling Elite ◽  
Economic Point ◽  
Economies In Transition ◽  
Negative Effect ◽  
The Impact

The author analyzes the processes occurring in the banking sector of Ukraine from the standpoint of "non-economic" policy, the theory of which is currently being discussed in modern economics. According to the author, the impact of such a policy does not allow Ukraine to find the optimal strategy for its development, in particular regarding the regulation in the banking sector. One of the reasons for this is the shortage of public administration, which is generally characteristic of countries with economies in transition. It is proved that the NBU's "settlement" of the banking market after 2014 was extremely unsuccessful from an economic point of view. Quantitative estimates of losses suffered by the Ukrainian economy as a result of the campaign to clean up the banking sector during 2014-2016 are presented and analyzed. Through the prism of the typology of "non-economic" policy, the author considers the processes of demonetization of Ukraine's economy and current problems of the national stock market. It is determined that during the reforms in the banking sector, the adoption by the ruling elite, as well as the by the judiciary, of a series of uncalculated and unconsidered decisions poorly consistent with Ukraine’s specific features led to destructive consequences, which affect the long-term development of the country's economy. In addition to economic losses (more than 10 billion USD) and the planting of a ticking bomb under the future lending, the "bankfall" brought about social damage, which is the loss, by the most active segment of the population, of the confidence in the economic strategy proposed by government officials. In recent years, after the crisis of 2014, no banking institutions have been registered, while the number of banks’ separate branches is rapidly declining, along with the corresponding number of jobs. The author concludes that the current practice of selling liquidation assets of bankrupt banks will have a long-term negative effect, because it benefited bad creditors who bought their overdue debt at a discount through third parties, while the most active part of the population (depositors "200+" and small and medium businesses) suffered losses and lost confidence in banks. It is noted that the main reason for Ukraine to choose the "non-economic" policy is the separation of the management decisions from real socio-economic needs. As a result, the economic decisions initiated in this area not only cause material damage, but also hinder this country’s civilizational advancement

scholarly journals The regulatory compliance system: Impact of AML/CFT implementation on the financial performance of Lebanese banks

2021 ◽  
Author(s):  
Naser Chaabo
Keyword(s):  
Financial Performance ◽  
Tax Evasion ◽  
Banking Sector ◽  
Positive Impact ◽  
Regulatory System ◽  
Regulatory Compliance ◽  
Point Of View ◽  
Main Question ◽  
Financing Of Terrorism ◽  
High Level

The purpose of this paper is to provide a better understanding of how the financing of the compliance obligations which are related to “AML / CFT” (Anti-Money Laundering and Combating the Financing of Terrorism) does affect the financial performance of banks in Lebanon. The main question is: Does the compliance system play a positive impact on the risk management in Lebanese banking sector? Based on a sample of 66 respondents from BLOM Bank employees, the empirical results showed that the employment of a compliance regulatory system has increased bank’s costs. However, its implementation is not an option since it guarantees the compliance with the local, regional and international policies. Besides, the study revealed that there are numerous benefits associated with these costs that help banks to increase their awareness towards policies and regulations. These benefits are related to the high level of staff training, the closer due-diligence leveling, and the deeper contribution in combating tax evasion by implementing the CRS (Common Reporting Standards) standard in banks systems, which guarantee that information on financial accounts will be automatically exchanged between governments from a worldwide point of view

scholarly journals Bank System in the Digital Economy

2021 ◽  
Vol 5 (520) ◽  
pp. 333-338
Author(s):  
N. V. Akymenko ◽  
◽  
N. S. Mamontenko ◽  
Keyword(s):  
Information And Communication Technologies ◽  
Financial Services ◽  
Banking Sector ◽  
New Technologies ◽  
Positive Impact ◽  
Digital Economy ◽  
Digital Data ◽  
Domestic Banks ◽  
Bank System ◽  
The Impact

The article is aimed at analyzing the activities of domestic banks in the digital economy. The publication proves the need to consider the digital economy as an economy based on the use of digital data and is not limited to the trade sphere. Accordingly, it is proposed to consider the process of digitalization of the banking sector as a process of transition of the banks’ activities from the traditional form to one based on the use of information and communication technologies. The digitalization process has both a negative and positive impact on the activities of banks. As a result of new technologies, the advantage of banks was leveled, which was based on the use of expensive system software for their work within the framework of the desintermediation process. Under the new conditions, large global or local tech giants have significantly influenced the market, which, having a large customer base, additionally offer them financial services. Significantly affect the market the neo-banks, which, having transferred most of the activity online, caused the need to revise the feasibility of the existence of bank branches. Fintech companies have become the main competitors of banks, which is explained by their awareness in the innovation market and great flexibility. At the same time, cooperation between banks and fintech companies is promising. The article takes into account the impact of the pandemic on the financial services market and the activities of all participants, including banks. A significant restriction of social contacts led to the transition of a large number of services online, including the banking ones. Customers of banks received a push to use mobile applications. In a pandemic, the criteria that influence the choice of the bank have significantly changed. Changing priorities towards a greater choice of remote services, the convenience of obtaining them, should be taken into account by banking institutions in their activities.

Sign in / Sign up

Export Citation Format

Share Document