Assessment of Benefits and Constraints of Alternative Entrepreneurial Banking Method in Rural Households in Oyo State

The study focused on the assessment of alternative entrepreneurial banking method among rural households in Oyo State. The study was carried out in fifteen (15) rural communities of three (3) Local governments of Oyo State namely: Atiba, Ibadan South East and Atisbo. A total 0f 150 respondents were used and all the 150 respondents’ responses were retrieved for analysis. Result of the study indicated that there were more respondents (43.3%) who use mobile bankers (ajo ojojumo) to support their rural entrepreneurial activities than other means of banking in the study area. Results on the perceived factors that affect the choice of alternative banking method has it that availability, convenience and cost of banking services are the major factors to be considered in the choice of banking method for various rural entrepreneurial activities. On the perceived benefit derived in the use of alternative banking to support rural entrepreneurial activities, it was gathered that alternative banking method helps in solving financial problems with a weighted mean score of 1.87. Whilst, on the constraints encountered in the use of alternative banking methods to support rural entrepreneurial activities,  almost all the rural households (89.3%) believes the risk of losing their money to fraudster in alternative banking was the major constraints with a weighted mean score of 1.85. Correlation analysis of tested hypothesis showed that the constraints encountered by respondents in the use of alternative banking method (r = -0.183, p = 0.005) is significantly related with perceived factors that affect respondents’ choice of banking method to support their rural entrepreneurial activities. (r = 0.721, p = 0.000

Alternative Banking Systems and Economic Growth

This paper examines the connection between the presence of Shari\u27a compliant (Islamic) Banking institutions and growth rates observed in their respective countries. This subject is of increasing importance as Islamic banking has emerged as a competitive and a viable substitute to conventional banking systems in the past four decades. Islamic banks operating in parallel to conventional interest-based banks and their effect on the economy is still undetermined by scholars. This paper explores the principles and spread of Islamic banking, and uses OLS regressions to estimate their impact on national growth rates

Social and alternative banking: project selection and monitoring after the New Basel Capital Accord

Any economic activity calls for the exercise of moral judgement. There are some economic activities that actively promote collective benefit as a primary or secondary aim, and there are others that aim to increase the value of a firm. Investment decisions always have collective impact, but collective returns may be ignored or considered less important in company management if the objective is the maximisation of shareholder wealth. The allocative function exercised by banks in their credit activity may take this into account. Some banks nowadays focus on social profile, while others integrate the traditional approach with this new sensibility. But unfortunately banking regulations governing stability and soundness of the financial system make no mention of the social profile. The New Basel Capital Accord was an opportunity to recognise that bank's objectives may not consist only of the maximisation of shareholder wealth. But it was a missed opportunity, in that it gave advantages to traditional commercial banks and not to banks focussing on collective goals. This paper puts forward proposals for integrating the Basel II framework with profiles of collective bank credit policy. Social credit evaluation methods could help to identify those ethical banks which are more successful in meeting collective objectives. A sustainable credit appraisal methodology could have been examined by the Basel Committee and could have incentivated sustainable banking by giving it specific advantages.social banking, alternative banking, socially responsible investing, investments appraisal, Basel II, new capital accord

INTERTEMPORAL PERMIT TRADING FOR STOCK POLLUTANTS WITH UNCERTAINTY

This paper explores the efficiency of tradable permit markets for stock pollutants. With uncertainty about the future stock level or damages, a market with banking and borrowing is inferior, in terms of efficiency, compared to a market without banking and borrowing if the regulator commits to an initial allocation of permits. This result occurs because, with banking and borrowing and commitment, the regulator needs to specify the total allowable amount of emission over time at the initial time period before the uncertainty with the pollution stock is resolved. An alternative banking and borrowing scheme is proposed, where the regulator can update the allocation of permits to firms over time and achieve the efficient pollution accumulation.Environmental Economics and Policy,

Capital and Earnings Management:Evidence from Alternative Banking Business Models

This paper examines whether institutional characteristics distinguishing Islamic from conventional banks lead to distinctive capital and earnings management behavior through the use of loan loss provisions. In our sample countries, the two banking sectors operate under different regulatory frameworks: conventional banks currently apply the “incurred” loan loss model until 2018 whereas Islamic banks mandatorily adopt an “expected” loan loss model. Our results provide significant evidence of capital and earnings management practices via loan loss provisions in conventional banks. This finding is more prominent for large and loss-generating banks. By contrast, Islamic banks tend not to use loan loss provisions in either capital or earnings management, irrespective of the bank's size, earnings profile, or the structure of their loan loss model. This difference may be attributed to the constrained business model of Islamic banking, strict governance, and ethical orientation

Differential market valuations of board busyness across alternative banking models

This study comparatively assesses the influence of board busyness (i.e., multiple directorships of outside directors) on stock market valuations of both Islamic and conventional banks. For a sample of listed banks from 11 countries for the period 2010-2015, results show that board busyness is differentially priced by investors depending on the bank type. In conventional banks, board busyness is significantly and positively valued by the stock market. This result suggests that investors perceive some reputational benefits arising from a busy board (e.g., extended industry knowledge, established external networks or facilitation of external market sources). In contrast, we find no supporting evidence on the market valuations of board busyness in Islamic banks. This result might be attributed to, both, the complex governance structure and the uniqueness of the business model which require additional effective monitoring, relative to that employed in conventional banking. Our results also show that investors provide significantly low market valuations for busy Shari’ah advisory board which acts as an additional layer of governance in Islamic banks. Findings in this study offer important policy implications to international banking studies and regulations governing countries with dual-banking systems.N/

Cooperatives of alternative banking

Actualmente se evidencia en España una reorientación solidaria de una parte de la oferta de servicios financieros, que prioriza el compromiso social de su actividad sin descuidar, por ello, la viabilidad económica. Este modelo de hacer banca se identifica bajo la denominación genérica de banca alternativa, ética, social o solidaria y constituye un planteamiento bancario distinto del enfoque tradicional. Este trabajo pretende destacar la idoneidad de la sociedad cooperativa para el desarrollo de banca alternativa. Su naturaleza jurídica y sus normas de funcionamiento permiten potenciar la utilidad social de la actividad bancaria. La dualidad de sus socios elimina eslabones de la cadena de intermediación y destina los recursos propios a la financiación de proyectos socialmente responsables, en un camino en el que la economía financiera y la economía real avanzan muy próximos.Currently in Spain we are witnessing an ethical reorientation of a part of the offer of financial services which gives priority to the social commitment without losing economic viability. This banking model known as alternative banking also known as ethical, social or sustainable banking is distinct from traditional banking. This work wishes to highlight the ideal conditions of cooperatives for the development of alternative banking. Its legal nature and its functional regulations enhance the social utility of the banking activity. The double condition of the partners eliminates intermediaries and allocates directly equity towards financing socially responsible projects, in a way that the financial economy and the real economy advance together.Escuela de Estudios CooperativosFac. de Ciencias Económicas y EmpresarialesTRUEpu

Analyzing The Effect of Alternative Banking Channels on the Employees Productivity of the Commercial Banks: Evidence from the State Bank of India

Alternative Banking Channel is a branchless access channel to banking institutions at a lower cost, convenience, high subscription rate, faster transaction speed, and expanded income sources. The purpose of this study is to look on the other side also i.e. the productivity of the employees. For the study, State Bank of India has been selected (largest Public Sector Bank of India). Only secondary sources such as annual reports, published publications, conference papers, books, and banking websites were used to obtain the data. With the help of regression model, an attempt has been made to analyze the impact of alternative banking channels on the productivity of SBI's employees. According to this research, the rate of use of ABC products such as Online Banking, ATM Card, POS, Internet Banking, Mobile-Cash, Electronic Fund Transfer, and Real-Time Gross Settlement is increasing which has not only boosted the profitability of SBI but also increased the Business productivity of employees

Card Frauds and Customers’ Confidence in Alternative Banking Channels in Nigeria

The need to reduce banks’ operating costs and improve customer satisfaction has led to the deployment of Alternative Banking Channels (ABCs), through which banking transactions are performed. The Nigerian banking industry has aligned with this global trend leading to increased usage of ABCs by customers. However, fraudsters are taking advantage of this development to defraud unsuspecting customers resulting in customers’ loss of confidence. Arising from this problem, this paper investigated the effect of card frauds on customers’ confidence in ABCs in Nigeria. The study employed data obtained from Nigeria Deposit Insurance Corporation, Central Bank of Nigeria (CBN) and Nigerian Electronic Fraud Forum from 2012 to 2016. Various econometric analyses like Unit roots, co-integration test and Generalized Method of Moments were used to analyze the data. The Value of transactions on ABCs, proxied for customer confidence, was used as the dependent variable, while card frauds, proxied by value of frauds on Automated Teller Machines and Point of Sales (CPF), and web and online banking platforms (CNF) were included as independent variables. Banks’ Total Assets, Prime Lending rate and Inflation rate were included as control variables. The results showed negative relationship between card frauds and customer confidence in ABCs. The paper concluded that card frauds affect customer confidence in ABCs negatively leading to customers preferring inbranch transactions. The paper recommended improved collaborations between banks and CBN to tackle frauds and leverage on the Bank Verification Number platform to improve security of transactions on ABCs through biometric authentication