Why Does the Negotiable Certificate of Deposit Matter for Chinese Banking?

The Negotiable Certificate of Deposit (NCD) is a major financial instrument in China; the value of outstanding Chinese NCDs was approximately RMB8 trillion (equivalent to USD1.2 trillion) in mid‐2017. This article reviews the most recent developments in the Chinese NCD, including its effect on interest rate pass‐through and money creation. Empirical results show that the introduction of the NCD in 2014 influenced the relationship between the policy rate and the lending rate of Chinese commercial banks, and the interest rate pass‐through from the policy rate to the lending rate of commercial banks improved subsequently. However, this process has also been accompanied by maturity mismatch, increasing leverage, and decreasing credit ratings for the assets of banks and other financial institutions. Consequently, systemic risk in the Chinese banking system has increased.     

Shadow Banking Credit Intermediation： Determinants of Default Risks in Securitization and Collateralization

The growth in shadow banking system over the past few years is acknowledged as the key risk to Malaysia＇s financial stability. This is because that it is associated with growth in the household debts extended by the shadow banks. In line with initiatives by the Bank Negara Malaysia （the Central Bank of Malaysia） to enhance surveillance on the activities of the shadow banks in Malaysia, this study attempts to examine the determinants of default risks of shadow banks restricting to focus on their two main activities： securitization and collateralization. The results provide empirical evidence that future methodology to examine the systemic risks in the shadow banking system may need to account for additional explanatory variables that measure collateralized assets that are being intermediated.     

A Study on the Productivities of IT Capital and Computer Labor: Firm-level Evidence from Taiwan’s Banking Industry

The current paper extends the non-neutral stochastic frontier production function—which belongs to the class of a one-step procedure as defined by Wang and Schmidt (2002) and developed by Huang and Liu (1994)—from a cross-sectional setting to a panel data modeling. Using a newly-surveyed dataset from Taiwan’s commercial banks on their investments in information and communication technologies (IT), I find that IT capital and computer labor tend to exhibit higher productivities than their non-IT and non-computer counterparts, that IT capital has positive impacts on the marginal productivities of computer labor and borrowed funds, and that the mean technical efficiency is around 87.7%. Evidence is found that the total factor productivity of the banking sector grew at an average rate of 0.28% per annum, albeit fluctuating, for the past 8 years.     

Impact of International Networks on Standardization Process in Banking Industry： Example of Secure Electronic Transaction （SET） Initiative

The purpose of this article is to present and interpret the case study of the secure electronic transaction （SET） scheme of Internet security, as an illustration of the necessary construction of interoperability solutions for financial services. The interpretation of case data with actor network theory （ANT） provides an illustration of power coalitions among banks to create a de facto standard for transnational electronic payment security on the Internet. After a step of protecting its political interests and well-known technological solutions, the coalition understands that its mission becomes a matter of life and death for its members： Brand-new currency has been invented on the Web and one could develop business and monetary transactions without the banks. This interpretative stage tells us much about the transnational mechanisms of regulation and standardization as well as the ＂translation＂ steps regarding these transnational organizations. However, an additional step has to be added to this interpretative step, a step of framework construction. The aim is to help managers of the transnational firms involved in regulations and standardization to anticipate the evolutions and make relevant decisions. The framework has three distinctive characteristics： the ability to help conception, the ability to help conceive problems ＂ex ante＂, and the ability to facilitate collective conception of strategic maneuvers.     

Banking Employees’ Perceptions of Corporate Social Responsibility,Value-Fit Commitment,and Turnover Intentions: Ethics as Social Glue and Attachment

Evidence suggests that efforts to improve corporate ethics and social responsibility are associated with enhanced work attitudes, but the nature of these relationships is still subject to investigation. Consequently, this study determines the degree to which perceptions of corporate social responsibility are related to individuals’ value-fit commitment and turnover intentions (both employee-reported and manager-reported). Information was obtained from subjects employed in a southern regional branch of a national banking and financial services institution. Two unique self-report questionnaires were developed to collect information from managers and employees, resulting in ninety-two matched pairs of forms. Mediation analysis indicated that perceived corporate social responsibility was associated with increased value-fit commitment, and that value-fit commitment was negatively related to employee-reported and manager-reported turnover intentions. The presence of full mediation was identified in both frameworks. These findings present a number of important managerial and research implications, which are discussed in this study.     

‘What Happens when the Phone goes Wild?’: Staff,Stress and Spaces for Escape in a BPR Telephone Banking Work Regime

This paper explores the experiences of staff working under a business process re-engineering (BPR) work regime. We examine the nature of work within a team-based, multi-skilled and empowered environment within financial services. Despite mixed responses our case study indicates that for those employees who remain in employment after ‘re-engineering’, working conditions may become more stressful and intensive. Although some staff may welcome those elements of a BPR work regime that facilitate a more varied work experience, the possibilities for satisfaction are often curtailed due to management$apos; preoccupation with productivity and ‘bottom line’ results. In practice BPR is neither as simple to implement nor as ‘rational’ in its content as the gurus would have us believe. Partly for these reasons it is also not as coercive in its control over labour as some critics fear. While managers may only want to encourage employee autonomy that is productive to its ends, we identify a number of occasions where autonomy is disruptive of corporate goals. The paper seeks to add to our understanding of ‘stress’, ‘resistance’ and management ‘control’ by considering the ways in which staff engage in the operation of BPR so as to maintain and reproduce these conditions. This dynamic cannot be understood, however, outside of the relations of power and inequality that characterize society and employment.     

Global Financial Crisis and Accounting Rules： The Implications of the New Exposure Draft （ED） Financial Instruments： Expected Credit Losses on the Evaluation of Banking Company Loans

During the financial crisis, the delayed recognition of credit losses on loans and other financial instruments was identified as a weakness in existing incurred loss model of impairment stated by International Accounting Standards （IAS） 39, because it is believed that this delay might generate pro-cyclical effects. In response to the recommendations of G20, Financial Crisis Advisory Group （FCAG）, and other international bodies, the International Accounting Standards Board （IASB） has undertaken, since 2009, as a part of the project to replace IAS 39, a project （partially shared with Financial Accounting Standards Board （FASB）） aimed at introducing an expected loss model of impairment. Within the scope of this subset project, the IASB has previously issued two exposure documents proposing models to account for expected credit losses： an exposure draft （ED） Financial Instrument： Amortized Cost and Impairment, published in November 2009, and a supplementary document （SD） Financial Instrument： Impairment, published jointly with the FASB in January 2011. However, neither of the two proposals received strong support from interested parties. Recently, the IASB, after the FASB＇s decision to withdraw from the joint project and to develop a separate expected credit loss model based on a single measurement approach consisting in the sole recognition of lifetime expected credit losses, published a third proposal--Ahe so-called expected credit losses model （ED/2013/3 Financial Instruments： Expected Credit Losses）.