Opening of national banking sector always started discussions and disputes. It is a common knowledge that countries in transition needed capital and technological support to improve economic competitiveness but there were some concerns about control over banking sector. Currently, this debate has started again. The aim of this work is to analyse the development of banking sectors of Visehrad countries in 1999-2010. In the first part described the process of foreign investment in these sectors. In the second part measures of functions fulfilled by a well developed sector were estimated and index of development of banking sectors of Visehrad countries was constructed.
Aim/purpose – This paper aims at examining the impact of revenue diversification on the quality of loan portfolio. The interest has been stimulated by the growing appetite for nontraditional activities among banks due to the declining interest income and rising nonperforming loans. Design/methodology/approach – The study considers a sample of 67 countries and quarterly banking sector financial reports over the period 2016Q1-2018Q4.The data are extracted from the International Monetary Fund Financial Soundness Indicators (FSI) database and are analysed through fixed effect regression as supported by the Hausman test.Findings – The study finds that revenue diversification impairs the quality of the loan portfolio. The findings are attributable to loss of focus, lack of expertise in managing non-lending activities, and possible agency problems. Moreover, the study controls for several banking sector-specific factors that affect the quality of loan portfolio. The re-sults show that credit growth and banking sector performance improve the quality of loan portfolio quality. However, the banking sector capitalisation and cost efficiency lower the loan portfolio rate, but the banking sector size has no significant effect.Research implications/limitations – Based on the findings, the study recommends that practitioners and regulators focus on innovative loans appraisal and monitoring practices instead of diversifying into non-interest generating activities.Originality/value/contribution – Unlike previous studies that focused on the relation-ship between income diversification and bank performance, this study contributes to the literature by examining the relationship between revenue diversification and quality of loan portfolio, thus bringing in a new insight into the bank revenue diversification debate.
Aim/purpose – The main purpose of the study is to investigate the bank-specific factors that influence the net interest margin of banks in Palestine. Design/methodology/approach – An econometric model using random effect panel regression was used to estimate data for all 17 working banks from 2006 to 2016. Findings – Result indicates that several factors, including credit risk, risk aversion, bank orientation, and foreign banks, have statisti cally significant effects on the net interest margin. However, results also show that su ch factors as operating expenses, management efficiency, Islamic bank, and time trend are not statistically significant. Research implications/limitations – The main policy lesson drawn from this study is that the net interest margin of working bank s in Palestine could be further enhanced by formulating regulatory policies regarding bank-specific factors, such as credit risk, risk aversion, bank orientation, and foreign ba nks. The most significant limitation of the study was the availability of data. Despite th e fact that several bank-specific factors were identified in the literature as a determinan t of the net interest margin, only the factors that have an available data were used in the study. Originality/value/contribution – The results of research introduced in the study make theoretical and practical contributions to th e body of knowledge. It fills the gap related to the bank-specific factors that influence the net interest margin of banks in Palestine, which have specific conditions and atypical situation.
Obecność kapitału w formie bezpośrednich inwestycji zagranicznych wpływa na wiele elementów struktury ekonomicznej kraju przyjmującego. Istnieje też proces odwrotny – odpływ kapitału, czyli dezinwestycje, które mogą się pojawić w Polsce w związku z planami tzw. repolonizacji polskiego sektora bankowego. Celem artykułu jest analiza zjawiska dezinwestycji zagranicznych w ujęciu teoretycznym, charakterystyka zmian własnościowych w polskim sektorze bankowym oraz przedstawienie możliwych scenariuszy rozwoju dezinwestycji kapitału zagranicznego w Polsce we wspomnianym sektorze.
EN
The presence of capital in the form of foreign direct investment affects many elements of the economic structure of the host country. There is also a reverse process – outflow of capital called divestments that may be in Poland in the context of the socalled domestication plans Polish banking sector. This article aims to analyze the phenomenon of foreign divestment in theory, the characteristics of ownership changes in the Polish banking sector and to present possible scenarios for the divestment of foreign capital in Poland in that sector.
The author presents the concept of user-driven innovation and discusses its possible application in banking. The aim of the paper is to assess the potential introduction of a new model of cooperation between banks and their clients in Poland. Social issues provide a background for this study.
Celem podatku bankowego wprowadzonego w niektórych krajach OECD po wybuchu globalnego kryzysu finansowego w 2008 r. było zwiększenie stabilności systemu finansowego, zgromadzenie środków na reagowanie na przyszłe kryzysy lub – tak jak w Polsce − zapewnienie dochodów budżetowych. Wprowadzony w Polsce w 2016 r. podatek bankowy oddziałuje w kierunku zmniejszenia kapitałów banków i ograniczenia dostępności kredytu dla sektora niefinansowego. Negatywny wpływ podatku bankowego na akcję kredytową będzie jednak ograniczony. W najbardziej prawdopodobnym scenariuszu potencjał kredytowy banków zmniejszy się o 11,4 mld zł (ok. 0,6% PKB). Ujemny wpływ podatku na kredyt dla sektora niefinansowego będzie w pełni skompensowany, jeśli w bankach o relatywnie wysokich kapitałach współczynniki adekwatności kapitałowej zostaną obniżone.
EN
In the aftermath of financial crisis outbreak in 2008 several OECD countries have introduced bank levies. New taxes were motivated by the need to increase financial system stability, building financial buffer for mitigating the future crisis or – as it was the case in Poland – increasing budgetary revenues. Bank levy introduced in Poland in 2016 has contributed to lower banks’ capital and reduced availability of credit to nonfinancial sector. However, negative impact of the bank levy on credit is likely to be contained. In the most likely scenario credit potential of the Polish banking sector will be reduced by PLN 11.4 bn (ca. 0.6% of GDP). Negative impact of the bank levy on credit to non-financial sector may be fully compensated if capital adequacy ratios in relatively well-capitalized banks are reduced.
Currently as the basis for co-creation and improvement of business offer serves the combined idea of crowdsourcing and social media. Solutions and applications of Web 2.0 are not only a next stage of evolution in the direction of Web 3.0 and Meta Web. They become rather a living proof how "future theories" become a current practice for more and more companies. The marketing concept transforms in a similar manner, as nowadays cocreation and interaction with the target group seem to be more important, than simple customer orientation. The article tries to illustrate the disparity between available and implemented solutions on the use of electronic communication tools within the social media. The basis for discussion in this regard will results presentation of research, conducted among nearly 1,800 customers of 11 largest banks in Poland.
Artykuł podejmuje problem funkcjonowania sektorów bankowych państw BRIC w warunkach globalnego kryzysu finansowego. Celem artykułu jest przedstawienie następstw globalnego kryzysu finansowego w sektorach bankowych państw BRIC, jak również nakreślenie działań podejmowanych w tych warunkach przez banki centralne. Globalny kryzys finansowy zagroził głównie gospodarkom analizowanych krajów (m.in. poprzez obniżenie eksportu i spadek napływu inwestycji zagranicznych). Negatywne tendencje ujawniły się jednak również w sektorach bankowych (czego przykładem może być ograniczenie akcji kredytowej). Działania podjęte przez banki centralne i same instytucje finansowe pozwoliły nie tylko przeciwdziałać zaburzeniom w sektorach bankowych, ale również wspierać krajowe gospodarki w warunkach kryzysu.
EN
The article undertakes the problem of functioning of BRIC banking sectors in conditions of global financial crisis. The aim of this article is to present the consequences of the global financial crisis in the BRIC banking sectors, as well as the outline of the measures taken by the central banks in these circumstances. The global financial crisis threatened mainly the economies of the analyzed countries (e.g. by reducing exports and causing drop in the influx of foreign investment). However, the negative trends also revealed in the banking sectors (for example the decrease of banks' lending). The actions taken by central banks and financial institutions have helped not only to counteract the disturbance in the banking sectors, but also to support the national economy in the conditions of crisis.
In the context of initiation of economic reforms in general and changes in policies and regulations of the banking sector in particular, the present paper attempts to examine the structure-conduct-performance relationships in Indian banking sector. It is observed that there have been changes in the market structure of Indian banking sector, conducts of the banks and their performance in the post-reform era, especially during the last decade, though the changes have not been significant in every aspect. Using a panel dataset of 59 banks operating in India during 1999-2000 to 2008-2009 and applying the two-stage least squares (2SLS) method of estimation, the paper finds that there exist strong inter-linkages amongst structure of the market, banks’ conduct and their financial performance. While market share of a bank depends directly on its market size, asset base, selling efforts, and past financial performance, its selling efforts vary directly with market share, asset base, and past financial performance. On the other hand, returns on assets of a bank vary directly with its market share, but inversely with its asset base and selling efforts. The regression results essentially suggest for multidirectional and dynamic SCP relationships in Indian banking sector. It is also found that the nature of ownership has significant influence on market share, selling efforts and financial performance of the banks. As compared to the nationalised banks, market share of the private banks (both domestic and foreign) is found to be lower. But private banks make greater selling efforts and have better financial performance vis-à-vis their public sector counterparts
W artykule podjęto próbę udzielenia odpowiedzi na pytanie: na ile załamanie w światowych finansach, zapoczątkowane kryzysem sektora bankowego w USA w 2008 roku, znalazło również swoje konsekwencje w kondycji finansowej polskich banków? W tym celu zbadano, posługując się klasycznymi wskaźnikami efektywności banków, kształtowanie się tej efektywności w latach 2004-2011. Analizą objęto zarówno sektor bankowy jako całość, jak i grupy banków, wyodrębnione według kryteriów, mających z punktu widzenia odporności na kryzys istotne znaczenie, tj. wielkości banków oraz ich struktury własnościowej. Następnie, dla uzyskania dokładniejszego obrazu różnic pomiędzy "okresem poprzedzającym kryzys", a "okresem kryzysu", obliczone w ten sposób wskaźniki efektywności poddano analizie ANOVA.Przyjęta metoda badawcza okazała się na tyle adekwatna, że pozwoliła finalnie uzyskać wyniki odpowiadające logice ekonomicznych zależności. Kryzys wpłynął wprawdzie na obniżenie efektywności finansowej we wszystkich grupach banków, co w świetle przedstawionych uwarunkowań wydaje się być całkowicie zrozumiałe, to jednak skala tego wpływu nie była jednakowa.(abstrakt oryginalny)
Zestawienie tych dwóch faktów - dzisiejszej dobrej kondycji banków nordyckich z ich kryzysową sytuacją w przeszłości - skłania do postawienia ważkiego pytania: czy doświadczenie sprzed dwudziestu lat wywarło korzystny wpływ na zarządzanie bankami w późniejszym okresie i w konsekwencji lepiej przygotowało je na wydarzenia aktualnego globalnego kryzysu finansowego? Próba udzielenia odpowiedzi na tak sformułowane pytanie jest przedmiotem niniejszego artykułu.
EN
The paper analyses the financial condition of Nordic banks in the period of the global financial crisis of 2007-2011. The condition of the Nordic banks compared favourably with large banks domiciled in other parts of Europe. It seems that the basis for their current balanced policy (prudent capital and liquidity management) to a large extent resulted from the difficult experience of the Nordic banking crisis of 1990-1993.
The aim of this paper is to assess the impact of foreign banks’ withdrawals on banking sector concentration. The past decade has been characterized by large scale foreign bank withdrawals from countries where these institutions represent a significant part of the banking sector. An empirical analysis has been conducted for the banking sectors of 53 countries over the period 1997 to 2008. The major finding is that the foreign banks’ withdrawals are positively correlated with banking concentration. The greatest magnitude of the effect can be seen with respect to the deposit market. Surprisingly, however, we do not notice any greater effect of acquisition of divested banks on banking sector concentration as compared to other forms of withdrawals. This might suggest a tendency to split up banking operations among many market players.
The need for tighter and more robust supervision of the global financial system was apparent long before nowadays economic crisis burst out. Although Basel I was the cornerstone of the first effort for the imposition of international regulations to banks, soon it was outrun being substituted by Basel II. The economic shock of 2007 financial crisis led the Committee of Banking Supervision of Basel to a new global regulatory framework for the banking system, aiming to strengthening it against future financial crises. In November 2010, a revised Pact of Basel II, named Basel III, was presented to the Seoul G20 Leaders' Summit. Basel III represents a fundamental strengthening of global capital standards. Together with the introduction of global liquidity standards, the new capital standards deliver on the core of the global financial reform agenda. It is argued that the implementation of Basel III will considerably increase the quality of banks' capital and significantly raise the required level of it. In addition, it will provide a "macro prudential overlay" to better deal with systemic risk. Finally, the new package will allow sufficient time for a smooth transition to the new regime. During the last years the Greek banking system has been found itself in the middle of a turmoil bearing successive shocks; first the global financial crisis and later on a side effect of it: Greece's debt crisis. This paper discusses the future implementation of the newly introduced Basel III into a unique context: Can Basel III secure the congruous operation of the banking system in periods of severe fiscal problems? (original abstract)
Głównym celem badania było określenie zmian strukturalnych, obecnych zarówno na rynkach finansowych, jak i w sferze realnej gospodarki, a także ocena współzależności między nimi.
EN
Variables and economic relations behave differently depending on the state of the economy. In the case of parameter instability, their variability should be taken into account in the theoretical models. The observed two-way relation-ships between the variables of the financial market and the real economy are not fixed. Especially during economic crisis reflected fluctuations in the financial market can strongly destabilize the real economy. The main objective of the study was to identify structural changes, both visible on the financial markets and in the real economy and in the relations between them. The conclusions of the estimated MS-VAR model confirm that in the period 1995-2012 in the Polish banking sector experienced structural changes which had an impact on changes in the real economy of Poland. (original abstract)
The paper presents the potential of JEREMIE to solve the problem of strongly limited access of SMEs to instruments financing their development. JEREMIE is seen as a tool that can be used to affect the development of the market financial system, supporting the SME sector.
The study identifies a new banking regulations designed to preserve the financial stability of the world economy after the global financial crisis. Polish membership in the European Union enforces on monetary authority of introduction new national banking regulations consistent with Eurosystem rules in order to reduce regulatory arbitrage effect. The study analyzes the new supervisory institutions from the prospective of conducting macro and micro-prudential supervision in the euro zone. Main consequences resulting from the implementation of the European Directive CRDIV / CRR adopted in April 2013 in Polish banking sector have been also researched. Also other banking regulations, which changed the current functioning of the euro zone banking sector have been investigated proving, that existing prudential solutions have secured liquidity and the stability of the banking system in Poland during the global financial crisis and, from the other side, the new regulation may pose potential threats to it. Domestic banks, despite the relatively high financial stability, expecting the new banking regulations in the euro zone are in a situation of permanent anxiety about strong and unfavorable regulatory changes.
The economic effects of the collapse of the credit institutions in the modern market economy make increasing attention is paid to early warning systems. They allow to take appropriate corrective action early enough to prevent banks from collapse. The purpose of this article is to present models of early warning systems that are used in Poland by the Polish National Bank, the Bank Guarantee Fund and the Financial Supervision Commission.
Regulacje rynku finansowego mają za zadanie zmniejszyć poziom ryzyka systemowego oraz obniżyć prawdopodobieństwo i częstotliwość występowania kryzysów. Bardzo istotnymi wymogami w ramach pakietu regulacji CRDIV/CRR (będących implementacją zaleceń Bazylei III do prawa Unii Europejskiej) są systemowe normy płynności. Jednym z nich jest wskaźnik długoterminowej płynności NSFR, którego wdrożenie jest przewidziane w 2018 r. Odnosi się on do ryzyka płynności i finansowania oraz ma się przyczynić do zmniejszenia skali niedopasowania wymagalności pasywów i zapadalności aktywów. Spełnienie tej normy w bankach będzie wymuszało zmiany w strukturze ich majątku oraz źródeł finansowania. Celem artykułu jest wskazanie zmian w strukturze bilansu banków, które powstaną na skutek dostosowań do normy NSFR.
EN
The aim of the regulations of the financial market is to decrease the level of systemic risk, probability and the frequency of crises occurrence. The liquidity regulations are significant obligations covered by CRD IV/CRR package (which constitutes the implementation of Basel III recommendations to the law of the European Union). One of them is the Net Stable Funding Ratio (NSFR) which will be implemented in 2018. Its purpose is to address the liquidity and funding risk and to contribute to the fall in the level of the maturity mismatch between the assets and the liabilities. Complying with the NSFR standard will put pressure on banks to change their balance sheet structure in terms of the assets and the funding sources. The aim of the article is to indicate changes in the balance sheet structure caused by the adjustments to the proper NSFR value.
Shadow banking może dostarczać wielu korzyści, jednak stanowi również poważne zagrożenie dla globalnego systemu finansowego. W obliczu rosnącego znaczenia bankowości równoległej, celem artykułu stała się identyfikacja zagrożeń związanych z działalnością tego sektora w Polsce oraz ukazanie świadomości finansowej jako sposobu ograniczania niektórych z tych ryzyk.
Polish banking sector is changing constantly. Nowadays the bank's sustainable market position, performance and the ability of profits' increase makes banks to rethink their market strategies and implement changes in their business models. Fortunately some changes have already been done. The consumers' satisfaction, including the fulfillment of their current and future needs, has become the key factor of bank's market success. A new business model requires creating client capital as one of bank's strategic resources and source of sustainable competitive advantage. The paper presents the role of client capital in the process of creating banks' competitiveness, its position in current business models and some remarks and challenges connected with flexible adjusting banks' business models to consumers' needs and expectations.
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.