Bank Performance and Credit Availability in the Bulgarian Banking Sector, 1997-2001

Abstract

The 1997 financial crisis wiped out 30% of the Bulgarian banking sector and created severe strains on corporations. With the establishment of the currency board in 1997 and the new Banking Law, which set the legal framework for proper bank supervision, major Bulgarian banks were rapidly privatized through sales to foreigners, now controlling around 80% of bank assets. Since 1997, the Bulgarian banking sector has recovered from the crisis by improving its profitability and efficiency and adopted a legal framework compatible with the European Union standards. Based on a regression analysis of bank balance sheets and income statements, this paper shows that low level of credit volume during 1997-1999 derived from banks' cautious stance towards credit making reflecting both the ongoing risks in the real sector, and the stringent new banking regulations. Large banks, however, benefited from scale economies in improving profitability in the same period.     

Hidden in plain sight: Correspondent banking in the 1930s*

Abstract

We present novel quantitative evidence on the number and location of correspondent banking relationships in the 1930s, a neglected area of international banking. Our data, collected from Thomas Skinners’ Bankers’ Almanac, captures over 2000 correspondent banking connections primarily based on London and New York and a smaller cohort of multinational banks. We draw on the new institutional economics and international business literature to explain the relative ubiquity of correspondent banking and the relative scarcity of multinational banks. Our argument that bilateral trade flows drive correspondent banking is tested empirically using an instrumental Poisson pseudo-maximum likelihood estimation.     

Customers Perception of Service Quality in Higher Education

ABSTRACT

Intense competition in the higher education sector in New Zealand has forced a number of educational institutions to examine the need for assessments of customer-perceived service quality for differentiation purposes. Research studies in this area have mainly focused on either the administrators or the faculty's perspectives and have overlooked the other customers, namely students and employers. The instruments developed based on the Importance-Performance paradigm were administered to 280 New Zealand employers and 1,000 business graduates. The results indicate that employers and students have perceptual problems with the level of service provided by tertiary institutions. Implications and suggestions for future research are provided.     

Emotional Labor and Job Satisfaction: Does Social Support Matter?

ABSTRACT

For the purpose of withstanding the fierce competition in the banking sector, various banks in Ghana requires employees to display emotions whenever dealing with customers. However, these emotions come with their own consequences. The question is could social support provided by these banks serve as a way to mitigate the negative outcomes of such behaviors and increase employee job satisfaction? This paper, therefore, examined the moderating role of social support in the effect of emotional labor on employee job satisfaction in the banking sector. Data were collected from 140 bank employees. The analytical tool used was Structural Equation Modeling.     

Banks' Efficiency and Stock Prices in Emerging Markets: Evidence from Malaysia

ABSTRACT

This paper empirically investigates the X-efficiency and P-efficiencies of Malaysian banks listed in the Kuala Lumpur Stock Exchange (KLSE) during 2002–2003 by applying a non-parametric Data Envelopment Analysis (DEA) method. We find that during the period of study, the X-efficiency of Malaysian listed banks was on average significantly higher compared to the P-efficiencies. The P-inefficiency was largely due to inefficient production of profits rather than the wrong scale of operations. Our results also suggest that the large banking groups were on average more X-efficient whereas the smaller banking groups were found to be more P-efficient. We further link the X-efficiency and P-efficiency to the respective banks' share prices and find that the stock prices of Malaysian banks react more towards the improvements in P-efficiency rather than the improvements in X-efficiency.     

Marketing in Russia

ABSTRACT

This paper offers a study of the development of the commercial banking system in two East European countries. Based on surveys conducted in Hungary and Poland, the authors discuss elements of the competitive market structure in the banking sector. Findings indicate that the commercial banks in Hungary and Poland have become more competitive, but there are differences between the two countries, especially in the way that the banks use sources of foreign funds.     

Compliance with IAS Disclosure Requirements by Financial Institutions in Uganda

Abstract

This study examines the extent of compliance by financial institutions (banks, and insurance firms) with IAS issued by the IASB and adopted in 1999 in Uganda. Despite the banking crisis of the 1990s and the drive to attract more foreign direct investment, we find that the extent of disclosure in the financial sector in terms of compliance with IAS is still poor. When we compare the disclosure scores for the two groups, we find that the scores are not significantly different. This indicates that the problem of low compliance is sector wide, and regulators need to improve on the standard of reporting in Uganda in order to improve acceptability of annual reports.     

Cost efficiency and the effect of mergers on the Taiwanese banking industry

This study addresses the cost efficiency, economies of scale and scope of the Taiwanese banking industry, specifically focusing on how bank mergers affect cost efficiency. Adopting stochastic frontier analysis, we employ a translog cost function for efficiency estimation. Composite error terms are used to account for managerial inefficiency and environmental effects. Empirical results suggest that economies of scale and scope exist at small and medium-sized banks. Meanwhile, government-owned or -controlled banks are the most cost efficient. Non-performing loans increase the inefficiency of the banking sector by just under 10 per cent. Further analysis reveals that bank merger activity is positively related to cost efficiency. Mergers can enhance cost efficiency, even though the number of bank employees does not decline. The banks involved in mergers are generally small and were established after the banking sector was deregulated.     

Perceptions of the risk of drowning at surf beaches among New Zealand youth

ABSTRACT

In many countries, beaches are a high-risk location for drowning. In New Zealand, youth and young adults are particularly at risk of drowning at beaches, accounting for 17.4% of drowning deaths and 18.4% of rescues at surf beaches between 2008 and 2013, over 90% of fatalities were male. This study explored New Zealand youth risk perceptions of drowning and their coping appraisal processes at a surf beach. A cross-sectional survey of high school students (n = 599) was conducted between February and April 2014. Females and non-New Zealand European students reported higher levels of perceived vulnerability and severity of drowning risk, and New Zealand European students reported higher levels of self-efficacy of preventive actions. By addressing the underlying causes of underestimation of risk and overestimation of ability, these findings can be utilized to increase awareness and to enhance water safety risk strategies for youth, especially males, in the surf beach setting.     

Determinants of Mobile Banking Users’ Loyalty

Abstract

In recent years, the banking sector has undergone major changes in the way it serves its customers. Banks have found that customer loyalty is fundamental to strengthening their strategies. The objective of this paper is to identify the variables that have the greatest influence on the loyalty of mobile banking users. A structural equation model of the relationships between the studied variables was developed. The main results indicate that the variables with the greatest influence on mobile banking users’ loyalty are satisfaction, use, and trust. Several conclusions, managerial implications, and possibilities for future studies emerge from these results.     

The impact of mergers in banking : Evidence from a nationwide sample of federally chartered banks

Spurred by deregulation, cost, and risk factors, commercial bank mergers have accelerated sharply in recent years. Many banks appear to be positioning themselves for the advent of interstate banking through holding company or reciprocal branching arrangements. Yet, the performance effects of mergers among operating U.S. banks (as opposed to holding company acquisitions) have been examined both infrequently and inconclusively. This study focuses upon the characteristics and performance effects of national bank mergers occurring during the 1970–1980 period. Acquiring national banks were found to have lower operating efficiency and productivity than nonmerging banks and their profitability did not increase following the mergers, but credit availability, productivity, loan losses, deposit service charges, and interest-rate risk did rise. Frequency of merger activity did not significantly influence bank profitability or growth, but did augment stockholder risks and increase business and real-estate credit. In the aggregate, national bank mergers appeared to result neither in significant service benefits nor in significant service costs to the public.Spurred by deregulation of the industry, rising cost pressures, and increased operating risk, merger transactions among U.S. banks have soared in recent years. During the 1982–1986 period, for example, banking led all other industries in the number of consummated mergers and consistently was among the ten leading U.S. industries in the estimated market value of merger agreements. Moreover, the recent upsurge in reciprocal interstate banking agreements and proposals for fully legalized interstate banking hold out the prospect for a further acceleration in bank merger transactions in the years ahead. In view of the fact that legislation in more than 30 states now permits some form of interstate banking by merger or de novo entry and a June 1985 ruling of the U.S. Supreme Court has legitimized regional banking compacts, the public and private impact of bank mergers becomes of much greater importance as a research focus.Despite the magnitude of recent bank merger transactions and their implications for the public, the research literature in this area is surprisingly meager and often contradictory. This article is an attempt to focus more sharply on recent research findings, provide additional evidence concerning the effects of mergers on the financial performance of banks, and assess their impact on the public's interest in an adequate supply of financial services.     

Shopping on the Internet–Online Purchase Behavior of New Zealand Consumers

ABSTRACT

The Internet provides an evolving channel for both business people and consumers to achieve their mutual aims. The rapid growth of Internet users in New Zealand provides a developing prospect for E-marketers. New Zealand has literate, educated, technology savvy “netizens” who are willing to spend time and money over the Internet. If E-marketers know the demographics of online New Zealand purchasers and the relationships between these demographics and online buyers' behavior, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining the existent online customers. This paper provides an insight into the demographic profile of New Zealand's online purchasers. Some implications are also provided in this research.     

The Increased Role of Foreign Capital in the Peruvian Financial System

Summary

Foreign investment has played a very important role in developing Peru's banking sector since 1990. Indeed, as of June 1998, half of all bank assets were foreign-controlled. Much of this increased participation by outside entities can be traced to the privatization drive and to discriminatory reserve requirements on domestic deposits. Despite financial deepening, the analysis conducted here finds that the financial sector has not become more efficient in lowering the cost of intermediation as measured by the interest spread between loans and deposits.     

Brand image,cultural association and marketing: ‘New Zealand’ butter and lamb exports to Britain,c. 1920–1938

Abstract

This article examines the branding and marketing strategies of New Zealand Producers Boards which were established in the early 1920s to coordinate the export of butter and lamb to Britain. The brand ‘New Zealand’ featured prominently in the promotion of lamb exports to Britain, whereas much more emphasis was placed on the ‘Anchor’ brand for butter. Because the ‘Mother Country’ was by far the biggest single export market for New Zealand butter and lamb, the branding and marketing activities of the Boards emphasised the strong cultural affinity that existed between Britain and New Zealand. Drawing on the relevant branding and marketing literature, the Boards’ annual reports, and reports by the Ministry of Agriculture and Fisheries, we show that ‘New Zealand’ and ‘Anchor’ conveyed the fundamental message of a shared British identity.     

Relationship Strategies for Market Entry

Abstract

With the fall of Communism, many New Zealand exporters joined the initial euphoria of the business community and took steps to re-establish trade with Eastern Europe. Despite some initial problems, most exporters are now establishing themselves in these markets. This paper examines the strategy of two large New Zealand firms and argues that forming a relationship with Eastern European traders is context driven. It is further argued that relationship-marketing models more accurately capture the trading realities of market entry in Eastern Europe. Based on the case studies, a series of propositions are developed examining the role of uncertainty in market entry, the formation of alliances and     

The Strategic Implications of EMU for European Banking

This paper reviews the broad impact of the European SMP (Single Market Programme) and approach of EMU (European Monetary Union) on European bank strategies.

Select but key aspects of the competitive strategies that banks might pursue in this ‘New Europe’ are then considered. Within this review; the key strategic question is explored whether banks necessarily have to be bigger in order to be more efficient and even ultimately to survive in a post-EMU world. It is argued thut efficiency considerations should dominnte over size per se. The strategic perspective that will be developed is to

view EMU as the next stage on from the present SMF! This perspective avoids the mistake of visuulising any kind of EMU as likely to precipitate dramatic ‘breaks’ in the present

strategic development of European banking. Since the SMP is well advanced, we already have some experience of the

strategic reactions of banks towards a single European banking market; this provides a useful indicator of at least some of the broader bank strategic reactions that might be expected to EMU.     

The Determinants of Net Interest Margin in the Ghanaian Banking Industry

Abstract

This study investigates the determinants of net interest margin and the role of the financial crisis in explaining net interest margin (NIM) in the banking industry in Ghana. Further, we assess the sensitivity of our results to the measure of credit risk. We observe a sharp drop in NIM and an increase in bad debt growth during the 2007–2009 financial crisis in Ghana’s banking sector. Depending on the definition of credit risk, we observe marginal differences in the magnitude and significance of the determinants of NIM. Generally, NIM is explained by bank-specific, industry and macroeconomic factors. We find risk aversion, operating cost, inflation rate and previous year’s GDP growth to be robust drivers of NIM.     

Impact of the Financial Crisis on Cross‐Border Mergers and Acquisitions and Concentration in the Global Banking Industry

The global banking industry has seen dramatic changes in the past 40 years. Most recently, the financial liberalization of emerging markets and the global financial crisis have significantly impacted the market share of banks worldwide. This article investigates the impact of the 2007–2008 financial crisis on cross‐border mergers and acquisitions (M&As) in the banking sector and emphasizes the role of emerging‐market banks in the postcrisis consolidation trend. Using M&A data and concentration data over the period 2000–2013, our analysis indicates that the financial crisis had a significant impact on worldwide M&As, especially on the direction of the transactions. Emerging‐market banks appear to be major acquirers in the postcrisis period, targeting both neighboring countries and developed economies in Europe. We also observe an increase in bank concentration in developed markets most hit by the financial crisis, especially in the United States and the United Kingdom, whereas bank concentration decreased in emerging markets. © 2015 Wiley Periodicals, Inc.     

Accident risk analysis based on motorway exposure: an application of benchmarking technique for human safety

Abstract

Accident risk analysis for human safety and infrastructural improvement are key requirements of the engineering sector. The purpose of this paper is to identify and prioritize problematic segments of roads based upon the risk evaluation concept and to focus on the severity of accidents regarding human life loss and easy manoeuvring. This study includes the concept of considering road segments as decision-making units for application of data envelopment analysis (DEA) technique which has no compulsion of the distribution function and critical assumptions, unlike the multiple regression models. According to the proposed methodology, a section of Motorway (M-2) Lahore-Islamabad has been analyzed. Out of 200 segments under consideration, 99 segments were selected with at least one accident and one injury or fatality. Furthermore, for risk calculation and ranking of road segments, the DEA technique along with the cross-risk matrix method was applied. This optimization technique could not only be helpful in ranking but also technical decision-making and prioritizations for safety improvement, policymaking and budget allocation.