This paper presents a new database of systemic banking crises for the period 1970-2009. While there are many commonalities between recent and past crises, both in terms of underlying causes and policy responses, there are some important differences in terms of the scale and scope of interventions. Direct fiscal costs to support the financial sector were smaller this time as a consequence of swift policy action and significant indirect support from expansionary monetary and fiscal policy, the widespread use of guarantees on liabilities, and direct purchases of assets. While these policies have reduced the real impact of the current crisis, they have increased the burden of public debt and the size of government contingent liabilities, raising concerns about fiscal sustainability in some countries.
Franco Fiordelisi, David Marqués-Ibáñez, P. Molyneux
We assess the inter-temporal relationship between bank efficiency, capital and risk in a sample of European commercial banks employing several definitions of efficiency, risk and capital and using the Granger-causality methodology in a panel data framework. Our results suggest that lower bank efficiency with respect to costs and revenues Granger-causes higher bank risk and that increases in bank capital precede cost efficiency improvements. We also find that more efficient banks eventually become better capitalized and that higher capital levels tend to have a positive effect on efficiency levels. These results are generally confirmed by a series of robustness tests. The results have potentially important implications for bank prudential supervision and underline the importance of attaining long-term efficiency gains to support financial stability objectives.
Niyaz Panakaje, Madhura K., S. M. Riha Parvin
et al.
Type of the article: Research Article
AbstractRetailers are leveraging social commerce by integrating advanced social media features to drive customer engagement and create superior value. Thus, a present study is an attempt to analyze the impact of perceived ease of use, user engagement and technological factors on social commerce usage and to assess its contribution towards the purchase intention of the working professionals. 380 working women (from organized sectors including education, industry, health, government, banking, and IT) were targeted from Bengaluru city of India by adopting the snowball sampling method which was further analyzed using independent sample t-test, regression analysis, and Structural Equation Modelling. The results of the study show the effects of perceived ease of use (β = .434), user engagement (β = .517), and technological factors (β = .662) on social commerce usage (SCU) are studied, which mediates purchase intention (β = .689). These results indicate that SCU is one of the main factors affecting purchase intention (β = .751). This also show that there is significant influence of perceived ease of use, user engagement, and technological factors on social commerce usage that has ultimately led to their purchase intention among working professionals. Based on these findings, it is crucial to perfect social commerce strategies in order to improve consumer’s engagement and encourage purchase behavior.
This paper aimed at a systematic review of the role of FinTech in enhancing the digital transformation of Saudi Arabian banks. Google Scholar was searched with related search terms to finally select 28 papers using the PRISMA process of screening and selection. There were very few papers directly dealing with the use of FinTech as a tool for digital transformation in banks, not specifically in traditional banks. There were a few papers on digital tools used in FinTech. Overall, the digital transformation of any kind of bank using FinTech tools had been slow and a small percentage of the total. The situation was worse in the case of Saudi banks despite the large amounts of budgetary allocations for technologies in banking as a part of its Vision 2030. This was because of the late entry of Saudi Arabia into these concepts. The need for Islamic banks to follow Sharia rules was not found to be a great problem. All these points indicate to the need for greater acceleration of using FinTech tools for the digital transformation of Saudi traditional banks. Some limitations of this review are the low rigour of the available papers due to methodological limitations, discussion papers without empirical data dominating and a wide range of aims provided in the papers. The need for substantially more work on Saudi banks has been highlighted. The validity of the conclusions from this review needs to be verified using empirical research.
Sharia Banking is a business entity that carries out the function of collecting funds from parties with a surplus of funds and then channeling them to parties with a deficit of funds and providing other financial services based on Islamic sharia principles. This article analyzes. This type of research uses normative legal research, using a conceptual approach and a statutory approach as well as the Koran and hadith, primary and secondary. Legal materials obtained and analyzed qualitatively and then presented descriptively. The article aims to explain in general, the principles of sharia financing business activities include justice ('adl), balance (tawazun), kemashlahatan (maslahah), universalism (alamiyah), and do not contain gharar, maisir, usury, zhulm, risywah, and other haram objects. Financing or financing is funding provided by one party to another to support planned investments, both carried out by themselves and institutions. In other words, financing is funding issued to support planned investments. Law Number 10 of 1998 states that financing based on sharia principles is the provision of money or bills that are equated with it based on an agreement or agreement between a bank and another party that requires the financed party to return the money or bill after a certain period of time in return or profit sharing.
Omar M. Al-Hawtmeh, Audeh Atieh Alleimoun, Ghassan Obeidat
This research aims to investigate and conduct the impact of earnings management practices on the performance of the banking sector in Jordan. Data were collected from 24 main commercial banks from (2015–2021). The study examine how earnings management practices affect banking sector performance using debt ratios and equity ratios based on firm size and debt ratios, and measure the impact of earnings management on it using regression analysis. The result of the study reveal that a positive and statistically significant association between equity per share (EPS) and return on investment (ROI) with earnings management practices, also, earnings management techniques are positively and significantly impacted by return on equity (ROE), the hypothesis that returns on investment (ROI) encourage business managers to employ earnings management strategies. Also, the study show that dependent variables of earnings management is measured as a debt ratio and equity ratio. Variables that are independent or explanatory of earnings management are considered independent variables.Originality/value – The originality of the study is that it provides evidence about impact of EM practices on banking performance in a developing banking sector.