Pillar 3 and Modelling of Stakeholders’ Behaviour at the Commercial Bank Website during the Recent Financial Crisis

AbstractThe paper analyses domestic and foreign market participants’ interests in mandatory Basel 2, Pillar 3 information disclosure of a commercial bank during the recent financial crisis. The authors try to ascertain whether the purposes of Basel 2 regulations under the Pillar 3 - Market discipline, publishing the financial and risk related information, have been fulfilled. Therefore, the paper focuses on modelling of visitors’ behaviour at the commercial bank website where information according to Basel 2 is available. The authors present a detailed analysis of the user log data stored by web servers. The analysis can help better understand the rate of use of the mandatory and optional Pillar 3 information disclosure web pages at the commercial bank website in the recent financial crisis in Slovakia. The authors used association rule analysis to identify the association among content categories of the website. The results show that there is in general a small interest of stakeholders in mandating the commercial bank's disclosure of financial information. Foreign website visitors were more concerned about information disclosure according to Pillar 3, Basel 2 regulation, and they have less interest in general information about the bank than domestic ones

Pillar 3: market discipline of the key stakeholders in CEE commercial bank and turbulent times

The study presented in the paper contributes to covering the gap in the area of sufficient information disclosure that also increases the interests of relevant stakeholders in contributing to depository market discipline and in being relevant to their interest within Pillar 3 framework. This paper is focused on an analysis of website data dedicated to Pillar 3 disclosures of commercial banks and on studying the behaviour of stakeholders in relation to the timing of serious market turbulence. The examined data consists of log files that were pre-processed using web mining techniques and from which were extracted frequent itemsets by quarters and evaluated in terms of quantity. The authors have proposed a methodology to evaluate frequent itemsets of web parts over a dedicated time period. The results show that stakeholders’ interest in disclosures is lower after turbulent times in 2009, higher in the first quarter, also higher together with annual reports (lower for Pillar 3 solo information). The paper’s results suggest that further changes in commercial banks´ information disclosure are inevitable in order to achieve an effective market discipline mechanism and meaningful disclosures according to the regulator´s expectations

Pilíř 3: Podporuje bankovní regulace zájem zainteresovaných stran o finanční a rizikový profil bank?

The paper examines the interest of the commercial banks' stakeholders in Pillar 3 disclosures and their behaviour during the timing of serious market turbulence. The aim is to discover to which extent current banking regulation supports stakeholders' interest in the information required by regulators to be disclosed. The examined data consists of log files that were pre-processed using web mining techniques and from which were extracted frequent item sets by quarters and evaluated in terms of quantity. The authors have proposed a methodology to evaluate frequent item sets of web parts over a dedicated time. Based on the verification of applied methodology on two commercial banks, the results show that stakeholders' interest in disclosures is highest in the first quarter at each year and after turbulent times in 2009 their interests decreased. Moreover, the results suggest that stakeholders expressed higher interest than in regulatory required Pillar 3 information in the following group of information: Pillar3 related information, Annual reports, Information on Group. Following our results, the paper contributes to cover the gap in the research by analysing Pillar 3 disclosures and their compliance with regulatory requirements, which also increase the interest of the relevant stakeholders to conduce them as an effective market discipline tool.Článek zkoumá zájem zainteresovaných stran komerčních bank o zveřejňování informací podle 3. pilíře a jejich chování v době vážných tržních turbulencí. Cílem je zjistit, do jaké míry současná bankovní regulace podporuje zájem zainteresovaných stran o informace, jejichž zveřejnění regulátoři vyžadují. Zkoumaná data se skládají z logů, které byly předem zpracovány pomocí technik web miningu a z nichž byly extrahovány soubory častých položek podle čtvrtletí a vyhodnoceny z hlediska kvantity. Autoři navrhli metodiku vyhodnocování sad častých položek webových částí za vyhrazený čas. Na základě ověření aplikované metodiky na dvou komerčních bankách výsledky ukazují, že zájem zainteresovaných stran o zveřejňované informace je v každém roce nejvyšší v prvním čtvrtletí a po turbulentním období v roce 2009 jejich zájem poklesl. Výsledky dále naznačují, že zainteresované strany projevily vyšší zájem než o regulatorně požadované informace 3. pilíře o následující skupinu informací: Informace související s pilířem 3, Výroční zprávy, Informace o skupině. V návaznosti na naše výsledky přispívá tento článek k pokrytí mezery ve výzkumu analýzou informací zveřejňovaných v rámci Pilíře 3 a jejich souladu s regulatorními požadavky, což také zvyšuje zájem příslušných zainteresovaných stran o jejich vedení jako účinného nástroje tržní disciplíny