137,775 research outputs found
What macroeconomic shocks affect the German banking system? Analysis in an integrated micro-macro model
We analyze what macroeconomic shocks affect the soundness of the German banking system and how this, in turn, feeds back into the macroeconomic environment. Recent turmoils on the international financial markets have shown very clearly that assessing the degree to which banks are vulnerable to macroeconomic shocks is of utmost importance to investors and policy makers. We propose to use a VAR framework that takes feedback effects between the financial sector and the macroeconomic environment into account. We identify responses of a distress indicator for the German banking system to a battery of different structural shocks. We find that monetary policy shocks, fiscal policy shocks, and real estate price shocks have a significant impact on the probability of distress in the banking system. We identify some differences across type of banks and different distress categories, though these differences are often small and do not show any systematic patterns. --VAR,banking sector stability,sign restriction approach
Analyzing financial sectors in transition : with special reference to the Former Soviet Union
This paper proposes a framework for analyzing the evolution of financial sectors in economies transiting from command to market structures. Most commentators have tended to regard this"Transition"as an undifferentiated period to be traversed as rapidly as possible. In doing so they ignore the increasing evidence that the Transition can be an extended, even enduring, state of the world, resulting from a complex interaction of economic, political, cultural and psychological factors. As such, it can and does generate incentives which fundamentally distort the behavior of economic agents in unpredictable ways. The authors argue that one result of ignoring the true messiness of the Transition is that the analysis and policy recommendations offered to governments can be flawed and often provide conclusions which are odds with the reality on the ground. The paper discusses this concern and proposes a simple analytical framework both for focusing on the Transition itself and also for use in defining and evaluating possible public policy interventions for the banking sector. This paper is organized as follows. Section II sketches the main shortcomings of the traditional analyses of the financial sector in transition - particularly the limitations of current thinking on the sequencing of financial sector reforms. Section III introduces and elaborates on the basic framework proposed. Section IV uses the framework to distill some simple but important propositions about transition banking. Section V provides an initial qualitative test of the framework, by using it as a lens through which to view some of the characteristics of transition banks which we have observed. It shows that behavior patterns which, at first glance, seem curious and counterproductive, do indeed have a rational explanation when viewed in relation to the analytical framework we propose. Section VI applies the proposed analytical approach to assess the appropriateness of various interventions -- especially those which have proved popular in the World Bank -- to support the financial sector transition. Two Annexes then elaborate particular aspects of the analysis. Annex 1 assesses how our analysis might recondition thinking about the appropriate regulatory and supervisory structures for transition banking. Annex 2 provides some initial empirical results based on our proposed framework of analysis.Environmental Economics&Policies,Banks&Banking Reform,Financial Intermediation,Payment Systems&Infrastructure,Labor Policies,Financial Intermediation,Environmental Economics&Policies,Insurance&Risk Mitigation,Financial Crisis Management&Restructuring,Banks&Banking Reform
Financial Intermediation, Capital Accumulation and Crisis Recovery
This paper integrates banks into a two-sector neoclassical growth model to account for the fact that a fraction of firms relies on banks to finance their investments. There are four major contributions to the literature: First, although banksā leverage amplifies shocks, the endogenous response of leverage to shocks is an automatic stabilizer that improves the resilience of the economy. In particular, financial and labor market institutions are essential factors that determine the strength of this automatic stabilization. Second, there is a mix of publicly financed bank re-capitalization, dividend payout restrictions, and consumption taxes that stimulates a Pareto-improving rapid build-up of bank equity and accelerates economic recovery after a slump in the banking sector. Third, the model replicates typical patterns of financing over the business cycle: procyclical bank leverage, procyclical bank lending, and countercyclical bond financing. Fourth, the framework preserves its analytical tractability wherefore it can serve as a macro-banking module that can be easily integrated into more complex economic environments
Management Accounting Practices and Discourses Change: The role and use of Management Accounting Systems
This paper aims to trace the development of management accounting systems (MAS) in a Portuguese bank, where an activity based costing system (ABC) has been trialled for implementation over the past few years, as a means to improving the economy, efficiency and effectiveness of employee activity. This initiative can be located in a wider cultural change in Portuguese banking towards global (i.e. US derived) strategies and processes, but within an organizational world where older traditions remain powerful. The research undertaken here is a longitudinal case study of organisational change in one institution based on a criticalinterpretive model. Although drawing on the interpretive tradition since it is concerned with actorsā perceptions, interpretations and beliefs, it also draws on a more historically focused Foucault-inspired critical framework of the kind developed in the work of Hoskin and Macve (e.g. 1986, 1988, 1994, 2000), and in the research into the financial sector undertaken by Morgan and Sturdy (2000). The particular model developed here is designed to enable the exploration of the effect of accounting practices on change across time from three perspectives ā changing structures, changing discourses and the effect of both of these processes on power relations. The research highlights the increase in visibility and perceived importance of accounting in the banking sector, and how accounting is significant beyond its technical roles. The study provides new insights into how management accounting practices, along with other organisational systems, play an important role questioning, visualising, analysing, and measuring implemented strategies. As the language and practice of management have shifted towards strategy and marketing discourses, patterns of work, organisation and career are being restructured, in often under-appreciated ways, by accounting practices.
Norms of language choice and use in relation to listening and speaking: the realities of the practice in the Malaysian banking sector
Sociolinguists have pointed to the current linguistic development of the present era as being marked by a complex interplay of sociolinguistic concerns, among which are contradictions between global networks, local identities, (Barber, 1995; Castells, 2000), and also in norms in language choice and use. Economic and social globalization has created a strong demand for an international lingua franca, thus furthering English's presence as a global language (Crystal, 1997). However, local languages remain influential and exert a presence in a multilingual situation. This study attempts to relate the use of the global language to that of the local languages in the Malaysian banking sector which plays a dominant role as an economic powerhouse. Within this financial sector, the matrix of language as a medium of expression provides a setting for investigating situated norms of language choice and use among multilingual employees in the Malaysian banking sector. Data were collected via a survey questionnaire. Fishman's (1972) theoretical framework is adopted and extended to the workplace context in order to examine the intricacies of the norms of language choice and use in relation to specifically the listening and speaking skills. These two language skills have been prioritized by Malaysian employees as the most needed in the workplace (Abdullah et al., 2010). The study gives focus to these two skills and the specific domains of use to illustrate the competing patterns of language choice in a multilingual Malaysian workplace
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Global vs. regional approaches to the internationalisation process of Nigerian banks: some preliminary evidences
Research investigating internationalisation process of service firms from developing countries is limited. This paper draws on extant work on internationalisation of the firm, servicesā internationalisation and proposes conceptual framework that investigates the internationalisation process of three leading Nigerian banks namely; Zenith Bank Nigeria (ZBN)Plc, First Bank of Nigeria (FBN) Plc and Intercontinental Bank Plc. This work attempts to evaluate the internationalisation process of these financial service firms to the UK market. It seeks to understand the driving forces behind these banksā motives for internationalisation to UK; the various influences that might have affected their decisions, the several internationalisation routes and strategies they might have followed in doing so; and the next strategies they might adopt in furthering their internationalisation process. This work contributes to some understanding of the reasons why service firms from developing countries internationalising to advanced locations like the UK. The analyses and findings of this study offer unique insights into the internationalisation processes of the three case banks, and examines how their different pathways was determined by a balancing act of leveraging accumulated global and regional strengths to achieved sustained international growth
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Crisis and Punishment? Explaining Politiciansā Appetite for Retribution in Post-Crisis Europe
This paper investigates the politics of holding bank executives accountable for banking crises. The aftermath of the 2008 global financial crisis was characterized by a significant variation in the extent to which European countries endorsed this type of retributive justice. In particular, while some countries established special prosecutorial bodies and took steps to facilitate prosecutions, others seemed to consider the crisis ābusiness as usualā and relied on the existing investigative and prosecutorial mechanisms to seek out wrongdoing. We explore the experiences of two European countries, Iceland and Cyprus. We argue that the way a financial crisis unfolds plays a significant role in shaping the appetite of politicians for promoting an agenda of retributive justice. With a banking collapse, politicians will be most proactive, as votersā demand for justice is high and the risks for the banking industry are minimal. With a severe yet negotiated crisis following a bailout/bail-in, politicians are more reluctant to endorse policies that may risk the recovery of the fragile
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Customer value creation in financial services
Customer value creation is allegedly at the centre of relationships between service recipients and service providers (such as financial service organisations in general, and commercial banks in particular). This research considers the role of customer value creation in the strategic response of banks to external changes in their growth opportunities. The analysis established that there had been changes in the framework in which banks' pursued synergy since 1980 (or 1990 in Mexican and 1992 in Estonian interviews). As a response to external change banks have created new synergies in the pursuit of greater growth and interviewees expected that changes in synergy creation should be reflected in banks' diversification and market positioning moves. New synergies required new capabilities and participants from all countries agreed that the current wave of change in synergy creation had carried through greater emphasis on customer profitability. All countries recorded a shift from a supply-oriented strategic stance to the development of skills to retain customers and even becoming a one-stop
financial service institution for their customers. However, greater emphasis on customer profitability was seldom followed by recognition of the key capabilities required for high customer value creation. This as most interviewees failed to provide an articulated account of how to achieve that profitability
Logics of Action, Globalization, and Employment Relations Change in China, India, Malaysia, and the Philippines
A logic of action framework is developed in order to conceptualize and understand the impact of globalization on employment relations, as well as to predict the future trajectory of employment relations. The argument is that the interplay between three different logics of action, i.e., the logic of competition, the logic of industrial peace, and the logic of employment-income protection determines the employment relations pattern in any given nation. The strengths of the logics themselves are determined by five often related factors, i.e., economic development strategy, the intensity of globalization, union strength, labor market features and government responsiveness to workers. Drawing on extensive field research on national policies and workplace practices in India, China, the Philippines and Malaysia, we show support for our framework. We find that ER patterns are reflect different combinations of logic strengths, that globalization\u27s impact on employment relations is not only complex, but contingent, and we suggest that long term convergence in employment relations is unlikely given variations in the combinations of logic strengths in different countries, and changes in logic strengths over time
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