The main purpose of this paper is to assess the cost-efficiency of Banco Ciudad de Buenos Aires’s bank branches using a Stochastic Frontier Analysis (SFA). With the results, management can decide on ...new branching dimension. Also, if some regulatory or managerial limits could be lift, such as closure or opening of new branches without the central bank authorization, or redundant staff reduction, the results could be important for management. We detect best and worst behaved branches. The more cost-efficient branches and the least cost-efficient ones differ in their size and input mix. Nonetheless, they present a similar output mix.
The purpose of the paper is to define and demonstrate the role of deposit policy for banking institutions, summarize and highlight the problems and its solutions in deposit policy of Ukraine that ...provides economic downturn and recovery. Appropriate selection and implementation of the deposit policy objectives, its operational structure and tools determines the degree of development of financial inclusion, which generate developed financial market, ensures public confidence to the deposit services, and increases the level of savings that positively affects the banking system financial stability and economy in the country in whole. It is because of availability and security deposit services, commercial banks of Ukraine have the opportunity to increase its resource base due to savings of the population. Methodology. The paper is based on a synthesis of data to explore the bank deposit policy situation. The paper considers the scientific and theoretical approaches for the developing the deposit policy management. It contains the analysis of the dynamics and current situation and conditions of the resource potential of banking institutions in Ukraine. Results of the article shows direct dependency between savings, consumption and deposit policy, therefore every banking institution includes the mechanism of banking management of the development and implementation of deposit policy. Also, this management defines the deposit policy directions according to the conditions of bank resources mobilization and its applying in active operations. The obtained results confirm that the term “deposit policy” is too complex, but it is investigated in interaction with banking activity. It is explained how deposit policy influences banking system and has impact on economic growth in general. Practical implications. The research creates methodological approaches to the measurement of effectiveness of deposit policy. Also, it studies the existing ones. It provides the possibility to define which of the approaches works in non-stable economic situation and which ones not. The paper has the aim to assess the deposit policy opportunities in balancing and ensuring financial stability of the banking system of Ukraine in the period of economic growth and during the financial instability. Value/originality. Despite of the presence of significant scientific results in this field, deposit policy, today there is no established scientific literature and a comprehensive vision regarding the necessary focus and exposure mechanisms of deposit policy for the banking system. It determines the need to formalize the conceptual framework and the necessary conditions for a financial inclusiveness, deepening scientific and methodological basis of research deposit policy. This article provides the author’s view on the important role of deposit policy for banking institutions and national economy in general.
Financial The analysis of the bank's financial statements is focused on the assessment of its financial condition and the achieved result, development and further perspective. In addition to the data ...contained in the financial statements, the analysis also uses data from accounting records and other sources. The very essence of financial analysis is the calculation of relative indicators and their comparison with each other. Banking management, current and potential owners of the bank, investors, depositors, the public and others interested in the bank's performance are sympathetic to the practice of analytical testing of the bank's operations. The results are a guide for formulating business policy and making adequate business decisions for all stakeholders. In this paper, we try to point out the specificity and importance of financial statements in banks, financial analysis as a method of examining business results and determining the performance of banks and the impact of analysis results on business decisions of bank managers.
The paper aims to highlight the strategic implication of corporate social responsibility (CSR) and sustainable development for the banking sector. A few years ago, banks did not give much importance ...to the social and environmental problems. Recently, the banks began to realize the major impact of the sustainable development over the way of ulterior development of the society and, implicitly over the banking system. In this context, the development of a bank management system based on sustainable principles is one of the current challenges. For this purpose this paper focuses on issues such as the importance and advantages of implementing sustainability bank management, international standards regarding sustainable banking management such as: Equator Principles for sustainable investment projects’ financing or GRI principles for sustainable reporting. In addition, we have developed a practical case study about the implementation of sustainable banking management; the case study presents Romanian Commercial Bank as an example of good practice in the Romanian banking sector.
This paper describes one of the major challenges of the future: the sustainable development of the society. Sustainability is now increasingly recognized as central to the growth of emerging market ...economies. For the banking sector, this represents both a demand for greater social and environmental responsibility as well as a new landscape of business opportunity. Several years ago, the main part of the banks did not consider the social and environmental problems relevant for their operations. Recently, the banks began to realize the major impact of the sustainable development over the way of ulterior development of the society and, implicitly over the way of creating of the banking value in the future. In this context, the development of a banking management system, based on sustainable principles represents one of the provocations of these days.Starting from literature in the sustainable banking management field in this paper are presented several relevant issues related to risk management in the context of sustainable banking financing: the need to implement the sustainable management principles in financial and banking industry; the role of banks in sustainable development of society; social and environmental risk management policies, events that have shaped the role of the banking sector in sustainable development; international standards regarding sustainable banking management such us: Equator Principles for sustainable investment projects’ financing or GRI principles for sustainable reporting. Furthermore, we developed a practical case study related to the implementation of sustainable banking management at Bank of America.
Credit rating is crucial in the fast-changing 21st-century banking industry to determine creditworthiness. Traditional credit score systems may not be able to handle today's complex money habits ...because they are focused on statistics and prior data. This research advises adding management, human resources, and organizational factors to machine learning credit evaluations in addition to financial data. Structure of the research describes different machine learning types. Logistic regression, decision trees, random forests, gradient boosting, and neural networks. The algorithms are trained using this dataset's financial metrics, management practices, HR indicators, and organizational procedures. Feature engineering strategies pull data from various sources to get a full picture of someone's reputation. The research argues that machine learning models should be transparent, especially in the highly regulated banking business. Using LIME and SHAP values helps make credit scoring determinations more dependable and understandable. Credit scoring will be more precise, and financial institutions will understand credit risk aspects better. Banks can improve loan selections, portfolio performance, and risk by adding management, human resources, and organizational data to financial data. This research helps financial organizations analyze credit risk in the age of machine learning and big data, resulting in more accurate credit score models.
The management of liquidity risk MITITELU, Stefan; MITITELU, Claudia
Finance : challenges of the future,
2009, Volume:
1, Issue:
9
Journal Article
Peer reviewed
The importance of ensuring liquidity exceeds the level of a single banking institution, since recording of the deficit of liquidity only at the level of a single bank may have nevagtive ...repercurssions on the whole banking system, and entire national economy. Liquidity represents one the permanent concerns in banking management.
Islamic banks implement a new concept that is not the same as the concept that has been known and embraced by conventional banking. The rapid development of banking today is not matched by an ...increase in the quality of its services. Many banks are only concerned with services in certain aspects by ignoring other aspects of service. The objectives in this study are (1) to identify the problems faced; (2) identify development efforts made by Islamic banks in Madiun. This research is a qualitative research with a phenomenological approach, by the descriptive method. Data processing techniques and checking the validity of the data is done by data triangulation techniques. Triangulation of data used in this study is the triangulation of methods and triangulation of theory. The results of the research findings state that the problems faced by Islamic banks in the city of Madiun in terms of HR and products. Problems in terms of HR include work motivation of employees, the level of public trust in Islamic banks is still low and the wrong mindset about Islamic banking. The problem in terms of products is the existence of miss perception of the contract between the customer and the bank. Development solutions carried out by banks through employee trainees and certification programs then conduct certification evaluations. In terms of products promoting the #ayohijrah program, and cooperating with basic Islam. In terms of services, there is a prizes savings program and ball pick-up strategy
This text provides current and integrated coverage of the important topics in international banking, including foreign exchange markets, derivatives, country risk analysis, asset-liability ...management, and banking strategies. In order to incorporate the central elements of this field, the text builds on a three-faceted foundation of risk-return tradeoff, the special barriers encountered in international business, and the unique features of banking business. By responding to the increasing globalization of financial markets, this text offers readers the comprehensive, international background they need to prepare for a successful career in banking. Provides current and integrated coverage of international bank management. Incorporates analytical frameworks and real-world examples of key decision-making processes. Includes learning objectives and end-of-chapter review questions.
기후변화 리스크가 금융산업에 미치는 영향 최용근; Yongkeun Choi
지급결제학회지,
12/2022, Volume:
14, Issue:
2
Journal Article
국제적 수준이나 정부의 정책이나 규제 등에 의해 기존의 비즈니스 등에 대한 리스크가 발생할 수 있지만, 동시에 기후변화 대응을 위해서는 다양한 기회도 생겨 위험에 대처하면서 기회를 활용해 나가는 것이 요구된다. 따라서 기후변화라는 글로벌 과제가 은행 경영에 미치는 기회와 위험에 대해 국제 금융규제 등의 동향을 고려하여 검토하고 향후 은행과 정부가 취할 수 ...있는 대응 방안을 제시한다.
은행은 지속 가능하고 상시 거주 가능한 사회를 실현하는 데 기여하는 사회적 책임을 지고, 거래처 기업의 탄소중립 전환 및 기후변화 적응을 지원하는 것 외에도 각 은행이 보유한 금융자산의 기후변화 위험분석 및 위험관리를 고도화하는 것이 중요하다. 은행은 신용을 제공함으로써 이른바 기한의 이익을 제공하여 자금 측면에서 거래처 기업의 지속적인 성장을 지원하는 역할을 해왔다. 은행이 책임 있는 자금공급 주체로서 기후변화 대응을 통해 지속 가능한 사회의 실현에 기여하기 위해서는 거래처 기업의 탄소중립 전환과 기후변화 적응 대책을 지원하는 것이 중요하다. 구체적으로는 재생 에너지, 녹색 건물, 폐기물 처리와 같은 기후변화 대책과 관련된 프로젝트와 혁신적인 환경기술에 자금을 지원하는 것을 고려할 수 있다. 은행들은 기후변화와 관련된 유용한 정보를 공개하고 이해관계자들에게 정보를 제공하고 대화를 강화해야 한다. 또, 공개정보의 이용자 입장에서, 거래처 기업의 기후 관련 공개를 기업의 잠재적인 과제나 리스크, 기회의 파악에 활용하는 것 외에, 필요에 따라서 공개를 재촉하는 것도 중요하다.
TCFD 제언 등에 입각한 기후변화에 관한 정보공개는 은행의 지속가능한 사회 실현에 대한 공헌으로서 기후변화 대응을 대외적으로도 알릴 수 있는 기회이며, 또한 ESG 투자 활성화를 배경으로 한 투자자들의 평가 향상을 통한 기업가치 증대에 기여할 것으로 생각되어 적극적인 대처가 기대된다. 이러한 평가의 향상은 앞으로 녹색채권 등을 발행하는 것을 고려할 때 투자자들에게 영감을 줄 것이다. 정부는 금융기관이 기업의 기후변화 대응을 지원하기 위한 기능을 발휘하기 위해 금융권의 활동 실태를 고려한 정책과 글로벌 조화 정책을 채택할 수 있도록 민관협력을 지속적으로 발전시켜야 한다. 기후변화에 대한 국제적 논의가 더욱 심화되고 과학적 지식과 금융기관의 기후변화 위험관리 실무가 증가할 것으로 예상된다. 이러한 상황에서 탄소중립으로의 기업 전환과 기후변화에 대한 적응을 촉진하기 위해서는 금융기관의 지원뿐만 아니라 정부정책에 의한 대응이 필요하다.
Risks to existing businesses may arise due to international or governmental policies or regulations, but at the same time, various opportunities arise to respond to climate change, and it is required to take advantage of opportunities while coping with risks. Therefore, opportunities and risks of the global challenge of climate change are reviewed in consideration of trends such as international financial regulations, and countermeasures that banks and governments can take in the future are presented.
Banks take on the social responsibility of contributing to the realization of a sustainable and resident society, and in addition to supporting business partners' transition to carbon neutrality and adaptation to climate change, they also advance climate change risk analysis and risk management of financial assets held by each bank. It is important to do Banks have played a role in supporting the continued growth of business partners in terms of funds by providing so-called timeline benefits by providing credit. In order for banks to contribute to the realization of a sustainable society through climate change response as a responsible source of funds, it is important for banks to support their business partners’ carbon neutral transition and climate change adaptation measures. Specifically, it could consider funding projects related to climate change countermeasures, such as renewable energy, green buildings and waste disposal, as well as innovative environmental technologies. Banks should disclose useful information related to climate change, inform stakeholders and strengthen dialogue. In addition, from the perspective of users of open information, it is important not only to utilize the climate-related disclosures of partner companies to identify potential issues, risks, and opportunities for the company, but also to promote disclosure as necessary.
Disclosure of information on climate change based on TCFD proposals is an opportunity for the bank to publicize its response to climate change externally as a contribution to the realization of a sustainable society. It is thought that it will contribute to value increase, so active measures are expected. This improvement in valuation should inspire investors when considering issuing green bonds and the like in the future. The government should continue to develop public-private partnerships so that financial institutions can adopt policies that take into account the actual conditions of financial institutions’ activities and global harmonization policies in order to demonstrate their function to support companies’ responses to climate change. It is expected that international discussions on climate change will intensify and that scientific knowledge and climate change risk management practices in financial institutions will increase. In this situation, in order to promote corporate transition to carbon neutrality and adaptation to climate change, not only support from financial institutions but also government policies are needed.
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