Development of Regional Commercial Banks in Digital Economy: Risks and Opportunities

The article is devoted to the analysis of the activity of regional commercial banks. The purpose of this article is to identify risks and prospects for the development of regional commercial banks in the digital economy. The author explores the concept of a regional bank, analyzes the peculiarities of the activities of regional banks in modern conditions of increasing banking competition. The article analyzes the state and trends of the development of the banking regional sector from the point of view of efficiency increase of their activities. It is shown that the number of regional banks is constantly declining, and a number of constituent entities of the Russian Federation do not have any longer in the structure of their regional banking system banking credit organizations chartered in their territory as a legal entity. The authors concluded that the development of regional banks can be efficient only through the qualitative growth of each individual regional bank, since in quantitative terms this sector of the Russian banking systems will only decrease. As an example the activity of Rostov bank Tsent-Invest and the regional bank of the Republic of Tatarstan Ak Bars Bank are shown, which occupied certain niches in the Russian banking system and fully compete with foreign banks. To identify and assess the current risks of the activity of regional banks specific characteristics of the digital transformation of the banking industry are determined. As the main risks of development, the authors identified the following ones: risk of increased banking competition, on the one hand, and the risk of monopolization of the banking market, on the other; risk of underfunding of financial technologies; information risks and cyber risks; risks of insufficient financial literacy of consumers of banking products and services; risks of customer base reduction. As opportunities for the development of regional banks the use of remote banking services, allowing to attract new customers, expansion of participation in the state programs, emergence of opportunities for the introduction and development of new business models, in particular ESG-banking are identified. The Bank of Russia can provide certain support for the development of regional banks in the context of digital transformation and increasing banking competition by creating and developing nationwide banking infrastructure platforms.

Apakah Terjadi Perpindahan Simpanan Nasabah Bank Kecil Ke Bank Besar (Flight to Quality) Pada Saat Krisis Pandemi Covid-19?

This paper aims to explain whether flight to quality or the transfer of deposit funds from small banks to large banks actually occurred during the Covid-19 pandemic crisis as suspected by banking analysts. This research is descriptive research with a quantitative approach. The secondary data source in this study was obtained from the website of the Indonesia Deposit Insurance Corporation which lists the value of Commercial Bank Deposits from July 2013 to d. July 2020. Analysis of the data using panel data regression analysis. The results of this study conclude that 1) the Covid-19 pandemic does not significantly affect the performance of small banks in collecting deposits, 2) the Covid-19 pandemic causes flight to quality small bank deposits, namely Book 1 banks, Islamic banks, and regional banks to category banks. others who have large assets and 3) Economic growth does not affect the performance of small banks in collecting deposits during the Covid-19 Pandemic.How to Cite:Ashari, H., & Nugrahanti, T. P. (2021). Apakah Terjadi Perpindahan Simpanan Nasabah Bank Kecil ke Bank Besar (Flight to Quality) Pada Saat Krisis Pandemi Covid-19? Akuntabilitas: Jurnal Ilmu Akuntansi, 14(2), 215-230.

REGIONAL BANKS OF RUSSIA IN CONDITIONS OF BANKING CAPITAL CONSOLIDATION: DYNAMICS AND DEVELOPMENT PROSPECTS

The article analyzes the dynamics and trends of changes in the number of regional entities of the Russian banking market in comparison with the federal ones. The definition of a regional bank has been clarified, the dynamics of changes in the number of credit institutions by federal districts of the Russian Federation has been identified, and districts have been identified that retain the stability of the presence of regional banks. The results of the banking reform impact (2017) on the bank capital consolidation and the banks separation into two levels are presented. It was concluded that there is a need for a regulatory and legislative definition and support for the credit sector of the regional economy, and competitive areas of business activity of regional banks of the Russian Federation are identified.

Proposed Service System Improvement for Regional Bank’s Mobile Banking Application using Service Science Perspective

Mobile banking application provides easy banking services wherever and whenever only using the internet and mobile devices. Today one of the regional banks in Indonesia struggles to encourage the customer to install and use the mobile banking application for banking services because most customers are difficult to understand their mobile baking system and want an easier method to access the services. For this reason, the management suggests increasing the marketing focus towards its current customer for mobile banking and improving the service system to be easier to use and accommodate the user’s current need. This research aims to help improve their service system using a service science perspective. Based on the service science framework, the author has analysed the provider and customer perspectives. Then, the root causes analysis identifies all problems, gaps, and customer needs. After conducting the analysis, the problem was found from lack of collaboration, the registration system to create account not optimal, and mobile banking activation system is not optimal. After implementing the value co-creation and orchestration process, the author proposed service system improvement using service blueprint and value blueprint.

The Importance of Visionary Leadership and Talent Management to Improve the Employee Performance

This study will identify, test and analyze the description of the Visionary Leadership variable, Talent Management variable on the Employee Performance variable at regional banks in West Java, Indonesia. This research is quantitative. This research uses descriptive method and verification method. The unit of analysis in this research is the employee. This research uses 300 people sample, and the analytical tool used is PLS-SEM. The results showed that Visionary Leadership Variable was quite good in the excellent category, Talent Management Variable was in the fairly good to very good category, and Employee Performance Variable was in the fairly good category with the very good category. The results also show that Visionary Leadership is influential and very important for Employee Performance, Talent Management is influential and very important for Employee Performance, Visionary Leadership is influential and very important for Talent Management, and Visionary Leadership is influential and very important Employee Performance through Talent Management.

Small Number of Big Banks: An Overview of Recent Mergers in Indian Banking Sector

Government of India with its vision to create globally competitive banks has initiated the consolidation of smaller PSB’s in bigger entities. The merger of five regional banks with State Bank of India and merger of two Public Sector Banks (PSBs) Dena and Vijaya with Bank of Baroda in recent past (2019) followed by mega consolidation plan of merging ten public sector banks into four banks is an indication of direction of the wind is going to blow for Indian banking industry. This policy of consolidation is an important tool used by banks for corporate restructuring and is in line with reformist agenda pursued by Govt of India (GOI) since 1990. These entities are to receive recapitalization funds from GOI to boost their net-worth strengthening their capital base. The present research is conducted to understand the objectives and statistics behind these mergers.