Narrow Results

This paper analyses the effect of regulatory pressure on bank behavior, using a sample of Tunisian banks covering the period 2005–2020. First, the paper examines the impact of regulatory capital on bank profitability and risk. Second, it contributes to the literature which has received scant attention from researchers investigating the nonlinear impact of regulatory pressure on bank behavior. Third, we consider different determinants of bank profitability and risk. Finally, we use both static and dynamic models to test for the persistence of bank profitability and risk, as well as to make sure that the results are not biased by endogeneity. The results suggest that regulatory capital pressure improves bank profitability and stability. This effect is, however, conditioned by the existence of a certain threshold, after which stringent capital regulation may have adverse effects. Our results have important policy implications on optimal bank capital regulation.

Using quarterly data on the banking sector covering the period 2002–2020, this chapter assesses the impact of uncertainty on banks’ liquidity hoarding in Qatar. To implement this empirically, we utilize the country-specific uncertainty measure and integrate it with a novel measure of bank-specific liquidity hoarding developed in recent research. The findings reveal that banks respond to economic uncertainty by increasing liquidity hoarding, especially on the asset side of their balance sheet, and there is a differential impact for Islamic banks, that too primarily on their asset side. Robustness tests validate these findings.

Banks now are facing strong competition from both technological giants and small fintech startups. Under these conditions, banks also have started to implement disruptive technologies in their day-to-day operations. However, in some cases huge investments in different technological systems do not lead to the increase in company performance due to the resistance of employees. In this chapter, we focus on both internal and external factors that may influence employees’ labor productivity and performance of the whole company. The sample includes 148 employees with education in banking and finance. The model was estimated based on Partial Least Squares Structural Equation Modelling (PLS-SEM). We show that both motivation to use disruptive technologies and digital skills have a strong impact of labor productivity, while both labor productivity and organizational support positively contribute to the improvement of company performance that is based on the usage of new technologies.

The aim of this study is to examine the omnichannel capacity of the banking industries in E7 economies. For this purpose, quality function deployment approach is taken into the consideration. The analysis of this study consists of five different stages. Customer requirement dimensions are weighted in the first stage with the help of interval type-2 hesitant fuzzy DEMATEL method. On the other side, type-2 hesitant fuzzy TOPSIS approach is used in other stages to measure omnichannel capacity of the customer requirements, evaluate new service development process, assess the innovative channels and rank E7 countries with respect to the omnichannel performance. The main novelty of this study is to evaluate the omnichannel capacity of the service industry with a novel fuzzy decision-making model. In this process, the main reason of using type-2 hesitant fuzzy information is to model the hesitancy of the experts so that uncertainties in this process can be handled more effectively.

Despite the fact that it could help to overcome the current global financial crisis, the concept of open innovation is only very scarcely applied in the financial services sector. This international literature review covering the past decade provides an overview of the relevant body of literature on this topic. Two questions represent the starting point of this work: (1) Why is open innovation so scarcely applied in the banking, wealth management and insurance industries? and (2) Should the financial services sector use open innovab2202 tion more widely? Our findings show that various organisational factors as well as monetary reasons prevent financial services companies from applying open innovation processes. Yet, by taking into account the potential benefits that the concept of open innovation may yield, this approach should indeed be applied more widely in the financial services industry.