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.

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.

PELATIHAN PERSIAPAN MENGHADAPI DUNIA KERJA BAGI MAHASISWA LULUSAN BARU

Semakin ketatnya persaingan kerja membuat mahasiswa yang baru lulus kuliah menghadapi kesulitan untuk mendapatkan perkerjaan yang mereka impikan. Sehingga, pembekalan diri bagi lulusan yang akan memasuki dunia kerja kini menjadi semakin penting. Oleh karena itu, pengabdian kepada masyarakat ini bertujuan untuk memberikan keterampilan bagi fresh graduate agar dapat mempersiapkan diri dengan lebih baik sebelum melamar pekerjaan. Pelatihan yang dilakukan secara daring ini menargetkan agar fresh gradute menjadi lebih siap dalam bersaing mencari pekerjaan. Pemberian materi dilakukan oleh dua orang narasumber yang kompeten, yaitu seorang psikolog yang telah berpengalaman di bidangnya dan seorang direktur utama Bank daerah. Setelah mengikuti pelatihan ini, para lulusan mendapatkan pengetahuan mengenai tips dan trik menghadapi tes wawancara dan psikotes. Sehingga, mereka menjadi lebih percaya diri dan termotivasi untuk bersaing dalam mencari pekerjaan.Kata kunci: pelatihan, dunia kerja, mahasiswa lulusan baru Increasing job competition leds the fresh graduates face difficulties in getting the job they dream of. Hence, self-provision for fresh graduates who will enter the world of work is now becoming increasingly important. Therefore, this community service aims to provide skills for fresh graduates so that they can prepare themselves better before applying for jobs. This online training aims to make the fresh gradute better prepared for job competition. The training was led by two competent speakers, an experienced psychologist and a president director of a regional bank. After attending this training, the graduates gain knowledge about tips and tricks for facing interviews and psychological tests. Thus, they become more confident and motivated to compete in job seeking.Keywords: training, world of work, fresh graduates

Money flow network among firms’ accounts in a regional bank of Japan

In this study, we investigate the flow of money among bank accounts possessed by firms in a region by employing an exhaustive list of all the bank transfers in a regional bank in Japan, to clarify how the network of money flow is related to the economic activities of the firms. The network statistics and structures are examined and shown to be similar to those of a nationwide production network. Specifically, the bowtie analysis indicates what we refer to as a “walnut” structure with core and upstream/downstream components. To quantify the location of an individual account in the network, we used the Hodge decomposition method and found that the Hodge potential of the account has a significant correlation to its position in the bowtie structure as well as to its net flow of incoming and outgoing money and links, namely the net demand/supply of individual accounts. In addition, we used non-negative matrix factorization to identify important factors underlying the entire flow of money; it can be interpreted that these factors are associated with regional economic activities. One factor has a feature whereby the remittance source is localized to the largest city in the region, while the destination is scattered. The other factors correspond to the economic activities specific to different local places. This study serves as a basis for further investigation on the relationship between money flow and economic activities of firms.

The African Development Bank

This chapter demonstrates how the African Development Bank (AfDB) has been deeply shaped by the history of its continent. Fuelled by a sentiment of independence, the creation of the AfDB was driven by a determination to create a regional bank run by Africans, funded by Africans, and serving African needs. African governments’ desire for autonomy and the quest to break with distorted patterns created by Africa’s colonial past helped position the AfDB as the largest development institution dedicated solely to serve the needs of the continent. This chapter argues that, over the years and—despite significant institutional reform, including the acceptance of non-regional members in its Board from 1982, including the United States and former colonial powers—the AfDB has managed overall to preserve its ‘African identity’.

Transformations, Ruptures, and Continuities in the Inter-American Development Bank’s Policy from 1980 to the Present

This chapter shows that, although the Inter-American Development Bank (IADB) mandate remained unchanged over the course of over fifty years from its creation, the Bank’s lending policies in Latin America changed over time, consistent with the prevailing policy framework in developed countries. Unlike in other multilateral development banks (MDB) with a presence in the region—especially the World Bank—Latin American countries played a bigger role in the IADB’s decision-making process from the very moment the regional bank was created. However, donor countries, in particular the United States, enforced IADB policy guidelines, with a varying degree of conflict over the different periods. The authors establish that the institution underwent a transition phase, which began in the 1980s, marking a move away from a developmental role associated with state-led industrialization processes. The IADB became a supporter of liberalization and deregulation policies in the 1990s and then, from the 2008‒9 global crisis, played a new active role for development.

Peran Work Discipline, Reward, dan Job Training terhadap Work Achievement pada Karyawan Perumda BPR Bank Daerah Lamongan

Research on work achievement is still relevant and exciting to study in companies worldwide. There are three variables tested for work achievement effects, namely work discipline, rewards, and job training. The location chosen in this study is Perumda BPR Lamongan. This study's population was 130 employees of Perumda BPR Lamongan Regional Bank with 98 samples using a probability sampling method. The data analysis of this study used SPSS, namely multiple linear regression. The results showed that work discipline, rewards, and job training had a significant positive effect on BPR Perumda BPR Lamongan Regency's work achievement, where the Job Training variable had the most significant influence on work achievement.

Audit of banks as public interest entities: Segmentation and conjuncture of the bank audit market in Ukraine

An important factor in restoring the confidence of financial consumers in banks is to provide auditors with credible and detailed financial statements and their solvency. This study is a pilot step in clarifying the auditor’s role in ensuring the banks’ reliability as public interest entities in Ukraine. It is aimed at investigating the segmentation of the banking audit services market in Ukraine and its comprehensive characteristics. Structural and dynamic analysis were applied to investigate market, regional and branch concentration, as well as main trends in bank audit market development within the data and registers of the Audit Chamber of Ukraine (ACU) and 75 annual reports of Ukrainian banks. Key aspects of the bank audit market in Ukraine are highlighted: the potential of the bank audit market, the ability of auditors to provide audit services and current characteristics of market conjuncture. Bank audit market is highly segmented: this study differentiates strong segments of international audit networks, associations and alliances, including Big 4 companies and the segment of weak Ukrainian audit companies. Kyiv and Kyiv region are the dominant economic active regions in terms of the regional bank market concentration and the presence of international audit networks. The study results are the basis for improving the regulation of the banking audit services market by the National Bank of Ukraine and ACU.

Dynamic Responses of Standard and Poor’s Regional Bank Index to the U.S. Fear Index, VIX

This study examines the reaction of the Standard and Poor’s Regional Bank Index (SPRB) to the U.S. equity market fear index (i.e., the Chicago Board of Trade Volatility Index [VIX]). The VIX is designed to perform as a leading indicator of the volatility in equity markets. However, practitioners observe many periods of divergence between the VIX and S&P 500. Our paper examines the daily data for the period of 2009 through 2019. We show that once the effects of consumer confidence and capacity utilization are accounted for, there is a negative association between the VIX and regional bank performance.

Banking front-line personnel assessment by fuzzy logic approaches

The article is dedicated to the qualitative assessment of banking personnel and the interpretation of the results with a developed fuzzy logic expert system. The authors proposed to evaluate human resources based on the Company Loyalty, Customer Service Quality and Intra-Corporate Communication which are linguistic terms for personnel to be assessed. To interpret the results of the received staff assessment, a fuzzy expert system was developed which enables the Business Efficiency of Personnel to be estimated. The expert system was tested at the front-line office of the regional bank. Regression and correlation analysis revealed high correlations between the Business Efficiency of Personnel and the quantitative results of employees. The practical relevance of the research is conditioned by the growing need to assess credit managers during the trial period or at the introduction of new products, while quantitative indicators are absent. The methods used for research comprise survey, ranking of the factors and factor analysis.