Narrow Results

The Cambodian banking sector has rapidly expanded in recent decades, although there are concerns about the performance of Cambodian banks and the country’s banking sector. A paucity of empirical evidence to clarify the real issues in the banking sector also makes it difficult to formulate effective policy measures to address any potential problems. This study provides empirical evidence by estimating the cost function and efficiencies of 34 commercial banks over the period from 2012 to 2015. We find that the average cost efficiency scores range from 0.60 when measuring bank outputs as loan and deposit amounts, and 0.77 when measuring bank outputs as interest and non-interest income, suggesting that if they are operated more efficiently, they could cut costs by 40% in fund mobilization and 23% in profit making while keeping the same output level. We also find that the Cambodian banks have experienced an improvement in efficiency scores over the period for both aspects of banking activities. Furthermore, we find that expanding a branch network into rural areas is inefficient for bank management, and holding excessive liquidity is associated with higher efficiency, but diversification in bank business operations is negatively associated with cost efficiency of Cambodian commercial banks.

The role of macroprudential policies (MPPs) in influencing bank behavior has expanded significantly in recent years. However, the evidence regarding the impact of MPPs in influencing bank behavior across countries with different Future time reference (FTR) of languages has not been adequately examined. To inform this debate, utilizing bank-level data during 2010–2019, we examine how MPPs affect bank return and risk across countries with varying FTR of languages. The findings show that using MPPs lowers risk in countries with strong FTR. This is manifest in baseline regressions as well as in robustness tests that incorporate additional dimensions of a country’s economic and institutional environment. Over and above, the results show that although borrower- and lender-focused macroprudential measures are equally effective, their efficacy differs, with the former set of instruments being more useful in Emerging Market and Developing Economies (EMDEs). In contrast, the latter holds greater traction in advanced economies.

Synopsis

The research problem

The Basel framework has been a significant development in the world of banking and finance, and it is imperative to have a firm understanding of these regulations and their implications for empirical accounting research, particularly as they relate to bank capital and capital requirements.

Motivation

The motivation of this paper is to advance the understanding of the role of accounting in post-GFC bank regulations and to empower researchers by improving their understanding of the regulatory process and their understanding of regulatory resources.

Target population

Global banks, bank regulators, and bank standard setters.

Adopted methodology

This paper aims to provide an overview of the interactions between bank accounting and prudential regulation, focusing specifically on post-GFC regulations such as Basel III.

Findings

I document differences between bank regulation and financial reporting standards, which are in a constant state of flux. Differences manifest themselves in definitional distinctions, such as the fact that bank capital is not the same as equity, the scope of application and associated data availability, the standard setting process, and stakeholder interests. The disparities are dynamic and specific to each country or jurisdiction, which adds complexity to the research process. Despite the efforts of the Basel Committee to establish unified standards, there has been an increasing divergence in the implementation of global banking rules. These developments present new research opportunities.

By the end of the 1990s, the Singaporean government had recognised the need to open up its banking sector so as to remain competitive in the global economy. The Monetary Authority of Singapore (MAS) thus began deregulation of the banking sector in 1999 to strengthen the competitiveness of local banks relative to their foreign competitors through mergers. This paper employs a nonparametric Malmquist productivity index to provide measure of productivity, technological change and efficiency gains over the period 1995–2005. The findings reveal some total factor productivity growth associated with deregulation and scale efficiency improvement largely from mergers amongst the local banks.

Policy discussions are dominated by the view that governmental safety nets offered to banks cause moral hazard and encourage risk-taking. However, [Cordella, T and E Levy Yeyati (2003). Bank bailouts: moral hazard vs. value effect. Journal of Financial Intermediation, 12, 300–330.] proposed that government support offered during crises may increase bank franchise value, resulting in less risk-taking. This paper presents additional theoretical results on the franchise value effect. The franchise value effect can dominate over the moral hazard effect even when there are no specific crisis periods. The franchise value effect dominates if bank shareholders have a weak time preference and if the decision on the intensity of risk monitoring is a long-term choice.

This study examines the relationship between bank-specific variables, macroeconomic variables and non-performing loans (NPLs) in the seven countries of Southeast Asia (Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) during the pre-COVID-19and COVID-19 pandemic. This study adopts panel data regression and distributed lagged regression to examine the impact of bank-specific variables and macroeconomic variables as NPL determinants. The results show that bank-specific variables significantly correlate to NPL, but limited evidence indicates the influence of macroeconomic variables during pre-COVID. Nonetheless, macroeconomic variables are significant to NPL with the emergence of the pandemic, while the bank-specific variables are found to be insignificant. It shows that macroeconomic variables have a greater impact during the turbulent period as they affect most businesses, especially during the pandemic. Furthermore, macroeconomic variables are observed to have a stronger influence on developed countries, but the impact of bank-specific variables is stronger in emerging countries. The results of this study assist policymakers, regulators, banks and governments in identifying the determinants of high NPL as the indicator of a financial crisis. Greater emphasis shall be given to the changes in macroeconomic variables.

The Indian banking industry is going through turbulent times. With the lowering of entry barriers and blurring product lines of banks and non-banks since the financial sector reforms, banks are functioning increasingly under competitive pressures. Hence, it is imperative that banks maintain a loyal customer base. In order to achieve this and improve their market positions, many retail banks are directing their strategies towards increasing customer satisfaction and loyalty through improved service quality. Moreover, with the advent of international banking and innovations in the marketplace, customers are having greater and greater difficulty in selecting one institution from another.

Hence, to gain and sustain competitive advantages in the fast changing retail banking industry in India, it is crucial for banks to understand in-depth what customers perceive to be the key dimensions of service quality and to evaluate banks on these dimensions. This is because if service quality dimensions can be identified, service managers should be able to improve the delivery of customer perceived quality during the service process and have greater control over the overall outcome.

The study suggests that customers distinguish four dimensions of service quality in the case of the retail banking industry in India, namely, customer-orientedness, competence, tangibles and convenience. A methodological innovation in this study has been in the use of TOPSIS in the field of customer-perceived service quality. TOPSIS has been used to evaluate and ranking the relative performance of the banks across the service quality dimensions. Identifying the underlying dimensions of the service quality construct and evaluating the performance of the banks across these factors is the first step in the definition and hence provision of quality service in the Indian retail banking industry.

Software development with its unique characteristics having knowledge-intensive and human-oriented aspects and complex domains, challenges organizations. The timely outcomes with high quality and desired cost that directly affect customer satisfaction have an important place in many organizations, including banks. In the last decade, as an emerging technique for business processes management, process mining has been applied in many domains, including manufacturing, supply chain, government, healthcare, and software engineering. There are limited number of studies on process mining techniques carried out for the software process, especially in the banking sector. A lack of tool infrastructure enabling to run the entire software development process and the challenges in integrating processed data from separated varying tools and assets complicate the use of process mining for software processes. This paper aims to identify the improvement points in the software development process of the Kuveyt Turk Participation Bank in Turkey through the surfacing actions. The findings and results are gathered by the application of process mining techniques of bupaR, and evaluation is provided by experts in the bank. After that, the relevant process improvements are identified. The results of this paper show that using process mining provides the organization with beneficial results, in particular, and a comprehensive view of the end-to-end Software Development Life Cycle (SDLC) processes.

On 19 December 2008, ICICI bank named joint managing director Chanda Kochhar as its new CEO from May 2009 to lead India's second-largest lender at a time of declining market share, soaring bad debts and a tough global environment. She would be the successor of the 61-year-old visionary banker K. V. Kamath, MD and CEO of ICICI Bank who was to retire on 30 April 2009 after completing his successful tenure of 11 years.

ICICI bank with a network of 1,456 branches and 4,721 ATMs in India and presence in 18 countries, is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$75 billion) and profit after tax of Rs. 37.58 billion for the year ending March 31, 2009. It offers a wide range of banking products and financial services to corporate and retail customers. The need for succession planning arose at ICICI as the term of one top level executive ended, one other retired and two left the company.

This case has been developed to provide understanding on how leaders are identified, nurtured and developed at ICICI bank, the strengths and weaknesses of CEO centric model of leadership development being followed by Kamath and the new institutionalized process of leadership development. It also provides the scope for discussion about the strengths and weaknesses of hiring an insider or outsider for the position of a CEO and the role of outgoing CEO in the development and selection of his/her successor.

We find evidence of "pure" contagion effects in international banking arising from the collapse of BCCI. A Markov regime-switching approach is employed to allow for the uncertainty surrounding the date of BCCI's collapse. The results indicate that there are shortcomings in the supervision of internationally spread banking groups like BCCI, and carry implications for the EU single market programme in financial services.

Theoretically optimal responses of banks to various liquidity and solvency shocks are modeled. The proposed framework is based on a risk-adjusted return portfolio choice in multiple periods subject to the default risk related either to liquidity or solvency problems. Performance of the model and sensitivity of optimal balance sheet structures to some key parameters of the model are illustrated in a specific calibrated setup. The results of the simulations shed light on the effectiveness of the liquidity and solvency regulation. The flexible implementation of the model and its semi-analytical solvability allows for various easy applications of the framework for the macro-prudential policy analysis.

Yak genome provides new insights into high altitude adaptation.

Gentris and Shanghai Institutes of Preventative Medicine expand collaboration.

Chinese researchers identify rice gene enhancing quality, productivity.

Quintiles opens new Center of Excellence in Dalian to support innovative drug development.

BGI demonstrated genomic data transfer at nearly 10 gigabits per second between US and China.

Quintiles deepens investment in China - New Quintiles China Headquarters and local lab testing solution announced.

Beike earns AABB Accreditation for cord blood and cord tissue banking.

Epigenomic differences between newborns and centenarians provide insight to the understanding of aging.

Growing Cord Blood Cells for Cancer Patients.

Umbilical Cord Blood Transplantation in Adults - The Debate between One vs. Two Units.

Stem Cells in Umbilical Cord.

Cord Blood Banking - To Go Public or Stay Private.

Metabolic Syndrome and Diabetes: Current Asian Perspectives.

A Crisis in the Development of Antibiotics.

The Marketing of Unapproved Stem Cell Products: An Industry-wide Challenge.

Draining the Goodwill of Science – The Direct-to-Consumer Genetic Testing Industry in East Asia.

Biodiesel – From Lab to Industry.

The Appearance and Development of Commercial Laboratories in China.

Cord Blood Banking – To Go Public or Stay Private.

Open Source – The Future of Drug Discovery.

VACCINES – Where are we headed?

Leveraging on External Expertise.

This paper examines some of the effects on shareholder wealth of the Korean bank restructuring measures that followed the Korean IMF bailout. The Korean banks are divided into four groups to check for differences in market reactions to FSC restructuring mandates. We find that shareholders of healthy banks benefit when self-rescue or management improvement measures are implemented at distressed banks. Share prices of banks not directly involved in the restructuring process are not significantly influenced by the restructuring. However, shareholders of financially distressed banks suffered significant losses, as much as they would have incurred had the bank closed. Share prices of banks ordered to improve management were influenced as much as share prices of closed banks. We therefore conclude that financially weak banks were significantly affected by restructuring orders, while comparatively sound banks were not significantly influenced.

The Korean crisis has been analyzed for the causal role banks played through the "credit view". Non-bank lenders have grown more important than banks in providing loans, but their role in creating financial instability has been ignored. This paper fills this gap, and demonstrates that non-banks were an important source of dislocation. Moreover, these results offer a counter-argument to proposals for "narrow banking". Narrow banking would separate deposit taking and lending into two enterprises, hopefully reducing vulnerability to panics. The poor performance of non-bank lenders even relative to banks in the Korean episode casts doubt on this model.

Banks are important for mobilizing savings and then channeling those funds to productive investment projects. While providing these and other services that contribute to economic growth and development, banks take on various types of risks with the expectation that the return they receive will compensate for the risks. This paper presents a simple model and tests the extent to which information asymmetry between bank owners and depositors induces risk-shifting behavior that allows for higher bank net interest margins. The empirical results support the hypothesis that the greater the degree of information asymmetry the higher net interest margins base upon a sample of 3,115 banks in 98 countries.

This paper models the effect of bank competition and deposit insurance premiums on the spread between lending and deposit rates. In developing economies, low spreads do not always indicate bank efficiency; they may be the result of high risk taking. This paper shows that imposing upper and lower limits on banks' spreads and adjusting deposit insurance premiums when violation of these limits occurs leads to a more stable but relatively large intermediation costs. In developing economies, such an outcome would be considered more desirable because it insulates existing financial intermediaries and investors against macroeconomic disturbances.

This paper evaluates factors that encourage or impede cross-border mergers and acquisitions in banking. The effects of bank specific features, as well as bank regulatory factors, from both target and acquiring banks' perspectives, are estimated. Three comprehensive databases are combined to provide a unique dataset to study cross-border merger and acquisition activities of banks. Banking sector regulatory variables included make this study among the first to empirically and comprehensively analyze the interrelationship between bank regulation and cross-border bank mergers and acquisitions. The results indicate that both bank characteristics and country specific characteristics are important determinants of banks' cross-border merger and acquisition activities.

Based on my more than 40 years of practical experience in banking and my forward-looking vision as a banker, I would share the five major development trends of banks with the distinguished guests under the theme of “The New Horizon of Banking”, including: (1) ESG as an essential embodiment of contemporary responsible finance; (2) the digital transformation of the banking industry as a long-term evolutionary process; (3) the evolution of payment models and the new state of money; (4) cross-industry alliances between the banking and nonbanking industries; and (5) the increasing importance of regulatory technology, RegTech.