Banking disclosure and banking crises in Africa: does board gender diversity play a role?

The paper aims to investigate the impact of board gender diversity in explaining the relationship between bank disclosure and the predicted probability of banking crises in Africa. The study employs robust panel estimates based on an aggregate dataset of banks in 42 African countries over the 2006–2018 periods. From the study, board gender diversity (more women on boards and the presence of women on boards) has a positive impact on information disclosure of banks. We find that board gender diversity and bank disclosure have the possibility of reducing a banking crisis. We observe that board gender diversity enhances the reductive effect of bank disclosure on a predicted probability of a banking crisis. The implication is that women on boards provide prudent decisions on financial information disclosure that significantly reduce the possibility of a banking crises in order to ensure stable banking systems.

European Banking Union and bank risk disclosure: the effects of the Single Supervisory Mechanism

This paper provides evidence on the impact of European Banking Union (BU) and the associated Single Supervisory Mechanism (SSM) on the risk disclosure practices of European banks. The onset of BU and the associated rules are considered as an exogenous shock that provides the setting for a natural experiment to analyze the effects of the new supervisory arrangements on bank risk disclosure practices. A Difference-in-Differences approach is adopted, building evidence from the disclosure practices of systemically important banks supervised by the European Central Bank (ECB) and other banks supervised by national regulators over the period 2012–2017. The main findings are that bank risk disclosure increased overall following BU but there was a weakening of disclosure by SSM-supervised banks relative to banks supervised by national authorities. We also find that the overall positive effect of the BU on bank disclosure is stronger for less profitable banks and in the most troubled economies of the Eurozone (GIPSI countries), while the negative effect on centrally supervised banks is stronger if bank CEOs act also as chairmen (CEO duality). We interpret these findings in light of the fact that the new institutional arrangements for bank supervision under which the ECB relies on local supervisors to collect the information necessary to act gives rise to inefficiencies with respect to the speed and completeness of the information flow between SSM supervised banks and the ECB, which are reflected in bank disclosure practices.

Bank Disclosure and Stock Price Synchronicity: Evidence from Dual-Banking System Countries

In stock markets, information plays a crucial role in determining trading dynamics and price discovery. In the investment decisions, an investor may have incomplete information regarding the firm-specific factors because of information asymmetry. Therefore, investors rely on market factors. Extensive work has been done on stock price synchronicity (SYNCH) from the dual banking system viewpoint. Therefore, the present study examines the association of Stock Price Synchronicity with Bank’s Disclosure items and Shariah Compliance using data of 138 banks for 09 years (2011-2019) by taking dual banking system countries. We consider 11 countries, i.e., Bahrain, Bangladesh, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi Arabia, Turkey, UAE, and Yemen, for analysis. We select different banks based on these countries' dual banking systems and exclude two countries (UAE & Yemen) due to data availability issues. Data of 138 banks is analyzed using specific statistical techniques like descriptive statistics, correlation, Fisher-type unit-root test, endogeneity test, and generalized method of moments (GMM) by using STATA. In the analysis, we found that bank disclosure has a significant positive relationship with SYNCH. However, shariah compliance banks have a significant negative relation with SYNCH. Moreover, control variables which include banks profitability, and leverage have a significant positive relationship with SYNCH. The banks' size has a significant negative relationship because the size affects the banks according to the market. Keywords: Stock Price Synchronicity, Bank’s Disclosure, Asymmetric Information, Banking Sector. JEL Classification: D82, G21

Financial Inclusion Disclosure: Empirical Evidence From Banking Industry Of Bangladesh

Financial inclusion refers to the procedure of making financial services accessible to all individuals and businesses at reasonable costs. Financial inclusion strives to address the constraints that retard people from participating in the financial sector. It has been drawn much attention for its contribution to economic and commercial development, raising inclusive growth, minimizing income inequality all over the world, especially in developing countries like Bangladesh. Central Bank of Bangladesh (Bangladesh Bank) formulated a financial inclusion policy in 2009 intending to make banking services available to unbanked people. This study examines the Financial Inclusion Disclosure by 30 Banks (5 state-owned banks and 25 private commercial banks) of Bangladesh, which are listed in the Dhaka Stock Exchange during the period 2015-2019. The objective of the study is to analyze the activities of the banking sector of Bangladesh for making banking services available to unbanked people. For that purpose, annual reports of the selected banks have been studied, and findings are demonstrated through graphs. According to the study findings, priority areas of financial inclusion include school banking, agent banking, street children account,10 taka farmers account, SME financing, rural credit, women entrepreneur loan, etc. This study also shows the prospects of financial inclusion, financial inclusion issues that are highly emphasized, barriers to financial inclusion, and initiatives needed to overcome these barriers. This study findings depict that the financial inclusion performance of state-owned banks of Bangladesh is relatively better than those of private commercial banks, and inclusion actions are increasing with time. Policymakers might use these findings and also the banks to ensure no eligible person remains unbanked. Keywords: Bangladesh Bank; disclosure; financial inclusion; unbanked people

Bank top management teams, disclosure, learning, survival and failure – 1990-2017

Purpose Corporate financial communications concern public and private disclosure (Holland, 2005). This paper aims to explain how banks developed financial communications and how problems emerged in the global financial crisis. It explores policy responses. Design/methodology/approach Bank cases reveal construction and destruction of the social, knowledge and economic world of financial communications over two periods. Findings In the 1990s, learning about financial communications by a “dominant coalition” (Cyert, March, 1963) in bank top management was stimulated by gradual change. The management learnt how to accumulate social and cultural capital and developed “habitus” for disclosure (Bourdieu, 1986). From 2000, rapid change and secrecy factors accelerated bank internalisation of shareholder wealth maximising values, turning “habitus” in “market for information” (MFI) (Barker, 1998) into a “psychic prison” (Morgan,1986), creating riskier bank cultures (Schein, 2004) and constraining learning. Research limitations/implications The paper introduces sociological concepts to banking research and financial disclosures to increase the understanding about financial information and bank culture and about how regulation can avoid crises. Limitations reflect the small number of banks and range of qualitative data. Practical implications Regulators will have to make visible the change processes, new contexts and knowledge and connections to bank risk and performance through improved regulator action and bank public disclosure. Social Implications “Masking” and rituals (Andon and Free, 2012) restricted bank disclosure and weakened governance and market pressures on banks. These factors mediated bank failure and survival in 2008, as “psychic prisons” “fell apart”. Bank and MFI agents experienced a “cosmology episode” (Weick, 1988). Financial communications structures failed but were reconstructed by regulators. Originality/value The paper shows how citizens require transparency and contested accountability to democratise finance capitalism. Otherwise, problems will recur.

ANALISIS KEPATUHAN PT BANK RAKYAT INDONESIA (PERSERO) Tbk PADA REVISI PSAK 60

Statement of Financial Accounting Standards (SFAS) 60 adjustment in 2014 is a standard that governs the disclosure of financial instruments. This greatly affects the standard of disclosure of details of banking information Indonesia on financial assets in the financial statements, as the industry is highly regulated, allegedly the level of compliance of the Bank Rakyat Indonesia (BRI) to implement the standard was high. Financial assets consist of available-for-sale, held to maturity, loans and receivables, and financial assets at fair value through profit or loss. This study aimed to see if the BRI bank disclose financial assets in accordance with SFAS No. 60 adjustment, 2014. The research method is descriptive qualitative. The results showed BRI bank in the disclosure of their financial assets in accordance with SFAS No. 60 adjustment in 2014 but the management did not express because the default has been completed and the loan terms have been renegotiated before the end of the reporting period. Bank BRI to apply IAS 60 and keep abreast of revisions in accordance with the specified standard. So that transparency in the disclosure of financial statements BRI clearer and can build higher trust of our customers and shareholdersKeywords : bank,disclosure, financial instrument