In the banking literature, investigating banking risk and its determinants is a key topic, especially since the global financial crisis that emerged from 2007. However, it seems that scientific ...research in this field has so far focused its attention mainly on the macro determinants of banking risk. Using a sample of Italian banks over the period 2013-2020, and adopting a microfoundations perspective, this study investigates the relationship between gender diversity in top management positions and bank risk, with a special focus on the mediation mechanisms behind this relationship. Our results demonstrate that the presence of females in top positions increases bank stability via intense employee training. The research findings provide novel insights into the determinants of bank risk from a microlevel perspective, with subsequent theoretical and managerial implications regarding the potential of gender diversity in top management positions and the attention to employee training. These aspects complement the banks' sustainability strategies and will therefore receive increasing attention from the market.
The article considers the essence of the concept of «emotional flexibility» and identifies its main elements and role in implementing management functions in banking institutions, particularly in ...decision-making. First, we substantiated the necessity of developing emotional flexibility to strengthen the functions performed by the leader. We established that the degree of development of this experience depends on how much the leader can act in a situation of uncertainty, quickly adapt to change, and find new opportunities and ways to make decisions. After all, in banking management, management decisions are pretty risky and challenging to predict because the financial sector is quite sensitive to socio-economic and political factors. Second, we characterized the mental models that guide any human activity. We consider the term «emotional flexibility of the leader» as a set of skills based on the ability to perceive their own emotions, label and understand them, and then consciously move forward. It also means recognizing stress and getting out of it, deciding how to act according to personal values and goals. Thus, we considered the categories that are the basis for the formation of emotional flexibility, namely: emotional self-awareness, the ability to manage emotions, the ability to control emotions, empathy, establishing and maintaining relationships effectively. We found that the developed emotional flexibility is inherent in leaders who can understand and direct their feelings, quickly identify subordinates’ emotions, and maintain effective social communication. Finally, we focused on the benefits of the developed emotional flexibility of the head of enterprises, institutions, organizations.The emotional flexibility of the leader lies in his conscious readiness to implement the emotional competencies necessary for the effective implementation of professional activities and solving social problems. This will contribute to professional development and personal development, the actualization of adaptive abilities, preservation of health and prevention of «professional burnout», harmonious functioning in society, life achievements. Constantly increasing the importance of the human factor requires additional research in emotional flexibility as another source of improving the efficiency and effectiveness of banking institutions.Keywords: emotional flexibility; emotional intelligence; human factor; leader; manager; management; banking management; decision making.
JEL Classіfіcatіon G41
Formulas: 1; fig.: 3; tabl.: 1; bibl.: 31.
Here in this article, a hybrid MCDM method on the Pythagorean fuzzy-environment is presented. This method is based on the Pythagorean Fuzzy Method based on Removal Effects of Criterion (PF-MEREC) and ...Stepwise Weight Assessment Ratio Analysis (SWARA) approaches. Here, the objective and subjective weights are assessed by PF-MEREC, SWARA model and the preference order ranking of the various alternatives is done through Complex Proportional Assessment (COPRAS) framework on the Pythagorean fuzzy set (PFS). The proposed method is the hybrid model of MEREC, SWARA and COPRAS methods. Further, the proposed model is used to identify the best banking management software (BMS) so that the bank can choose the robust bank management software tool to enhance its efficiency and excellence. Thereafter, a comparative discussion and sensitivity analysis of the proposed model is done with the existing techniques to judge the reasonability and efficiency of the proposed model.
The article is devoted to the study of the theoretical foundations of financial policy and its features at different levels of the financial system. The gaps in scientific research in financial ...policy analysis are outlined (there is no unambiguous interpretation of the concept of financial policy and its components; there are problems in structuring financial policy due to its incomplete classification and lack of orderliness). The need for the study of financial policy is identified because of its importance at the micro and macro levels of the economy. The terminological analysis of the concept of financial policy was carried out, the conclusion of which was the assertion that this concept is multidirectional, with attention focused on two directions of interpretation of financial policy – the financial policy of the state and the financial policy of the enterprise. The own interpretation of the concept of financial policy as a system is proposed. The choice of a systematic approach to defining the essence of financial policy is substantiated. The approaches of scientists to the structuring of financial policy are investigated. The common classification features of the financial policy of the state and the economic entity (by components, validity period, and tasks) are singled out. New classification features of the financial policy of the economic entity are proposed in view of the relationship with the concept of the financial policy of the state (according to the sources of formation, the way of interaction with the state, and directions of implementation). The classification of the financial policy of the economic entity (according to the types of activity and form of ownership) is separately supplemented. Approaches to the interpretation of the essence of a banking institution are determined. Based on the study, the interpretation of the concept of «financial policy of a banking institution» is proposed.
The discipline of operations management (OM) has long been offering differing quantitative techniques for improving the efficiency of banking operations. However, there has been a trend in recent ...years that operations and services of the banking industry are becoming more diverse and unstructured, rendering many traditional OM quantitative techniques less effective in performance improvement. By integrating the literature on banking operations, service quality, leadership style and work teams, we argue that leadership style and team performance are crucial concerns determining the service quality performance of today's banking operations in a team setting. Using data collected from 192 employees from 32 operational teams (a leader and five members in each team) in 15 retail banks in Macau, China, we investigated whether the five dimensions of transformational leadership have an impact on team performance with respect to team cohesion, team leader job satisfaction and team competence; and whether the dimensions of team performance have an impact on such service quality dimensions as reliability and responsiveness. We found that one of the dimensions of transformational leadership and two of the dimensions of team performance have a significant impact on service quality. We discuss the implications of the findings for research and practise.
► Aim: How transformational leadership and team performance impact service quality. ► Data: Surveyed 192 employees of 32 operational banking teams. ► Finding: Intellectual stimulation impacts service quality through team performance. ► Conclusion: Intellectual stimulation is the most important leadership dimension.
Banks perform the function of financial intermediation and play an important role in the functioning of an economy. Islamic banks, like conventional ones, manage their exposure to credit risk by ...selecting the right projects and the right profiles (in terms of solvency). The customer rating is important because it allows to measure the risk but also to segment the customer. The requirements of the regulatory authorities are very important at this level. The peculiarities of the Islamic bank are mainly related to the structure of its balance sheet. The principle of profit-and-loss sharing (PPP) makes assets and liabilities less diversified than in conventional banking. Overall, these banks are less risky (in terms of credit), but their operation is more complex on financing operations.
To create efficient funds appealing to a sector of bank clients, the objective of minimizing downside risk is relevant to managers of funds offered by the banks. In this paper, a case focusing on ...this objective is developed. More precisely, the scope and purpose of the paper is to apply the mean-semivariance efficient frontier model, which is a recent approach to portfolio selection of stocks when the investor is especially interested in the constrained minimization of downside risk measured by the portfolio semivariance. Concerning the opportunity set and observation period, the mean-semivariance efficient frontier model is applied to an actual case of portfolio choice from Dow Jones stocks with daily prices observed over the period 2005–2009. From these daily prices, time series of returns (capital gains weekly computed) are obtained as a piece of basic information. Diversification constraints are established so that each portfolio weight cannot exceed 5 per cent. The results show significant differences between the portfolios obtained by mean-semivariance efficient frontier model and those portfolios of equal expected returns obtained by classical Markowitz mean-variance efficient frontier model. Precise comparisons between them are made, leading to the conclusion that the results are consistent with the objective of reflecting downside risk.
This paper describes one of the major challenges of the present: globalization and its effects on the banking. Globalization is now increasingly recognized as central to the growth of market ...economies. For the banking sector, this represents both a demand as well as a new landscape of business opportunity.Several years ago, the main part of the banks did not consider the globalization problems relevant for their operations. Recently, the banks began to realize the major impact of the globalization over the way of creating the banking risk in the future. The banking management in the context of globalization represents one of the challengesof these days. Starting from literature in the globalization field in this paper focuses on several relevant issues related to banking management.
The notion of banks and banking management is differently interpreted and conceptualized, because of the different systems that bank as an institution operated. Bank as an institution has ...professionally role in the busines of taking and lending, but its most important role is in the creation of money. The bank often has a role in achieving the objectives of the economic policy of a country, but also it has the function of the payment system. On the other hand, from the aspect of management that involves management in all business areas, from the point of view of banking system, the management could be explained as the concept of banking operations. Strategic management is a contemporary style of organizational management that is based on the new business philosophy in the management of financial and real growth factors of the organization.
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.
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