Search results for "Financial system"

Regional banks in the global financial crisis: in search of new relationship models with local stakeholders

2017

The contribution attempts to find a confirmation of the theoretical statements presented by carrying out both a theoretical and an empirical analysis concerning credit institutions as a reference point for cooperative banks. We are referring to the so called 'popular banks' with their existing limits, compared with the rest of the Italian banking system, analysing the deposits, loans and bad debts in the years from 1995 to 2013; they have also proved to be more stable than the rest of the financial market during the last crisis (2008). Finally, in this era of globalisation it is highlighted how the regional bank model has to evolve by responding to the calls coming from the new competitive …

Anticipating bank distress in the Eurozone: An Extreme Gradient Boosting approach

2019

Abstract The banking sector plays a special role in the economy and has critical functions which are essential for economic stability. Hence, systemic banking crises disrupt financial markets and hinder global economic growth. In this study, Extreme Gradient Boosting, a state of the art machine learning method, is applied to identify a set of key leading indicators that may help predict and prevent bank failure in the Eurozone banking sector. The cross-sectional data used in this study consists of 25 annual financial ratio series for commercial banks in the Eurozone. The sample includes Eurozone listed failed and non-failed banks for the period 2006–2016. A number of early warning systems a…

Should Microfinance Institutions diversify or focus? A global analysis

2018

Abstract This paper investigates the effects of revenue diversification on the financial performance of microfinance institutions (MFIs). The long-standing question about whether financial institutions should diversify or focus is a topic of ongoing debate. Using a global sample of MFIs, we investigate which view is appropriate for microfinance institutions. The results show that, diversification across revenue streams improves sustainability and profitability of MFIs. This suggests that revenue diversification is an important strategy for the sustainability of microfinance.

Capital structure and CEO tenure in microfinance institutions

2018

The Effect of Cross-Border Language Use on Financial Performance of Microfinance Banks

2019

This empirical study investigates the financial performance effect of cross-border language use in 405 partnerships between microfinance banks and their international partners in 74 countries. Motivated by the literature on language in International Business, we find that microfinance banks that use a global language such as English have better financial performance. Further, the linguistic distance between the microfinance banks and their international partners is negatively related to the financial performance of these banks. This study highlights tangible performance outcomes of cross-border language use and suggests that language use needs to be addressed as a strategic issue in interna…

Do Female Loan Officers Mitigate Social-Financial Trade-Offs in Microfinance?

2021

This paper revisits social-financial trade-offs in microfinance. We theorize that workforce diversity mitigates the divergence between social and financial performance levels. We test our prediction by performing fixed-effects generalised least squares regressions on a global sample of 1257 microfinance institutions (MFIs) in 107 countries over the period 2010–2018. Confirming our prediction, the empirical results show that the proportion of female loan officers attenuates the negative relationship between the social performance and the financial performance of MFIs. We attribute our findings to the personal characteristics of female loan officers and the high repayment rates of loans that …

Performance and international investments in microfinance institutions

2013

Preprint of the published version of an article from Strategic Change Using data from 319 microfinance institutions (MFIs) in 68 developing countries, we study the degree to which international debt investments are related to the financial and social performances of MFIs. We find that commercial investments are mainly related to financial performance and level of professionalisation of the MFIs. The targeting of women is not a priority, even though international commercial investors target MFIs that provide small loans. Subsidised investments, however, are mainly driven by the targeting of women, while financial performance and the level of professionalisation of the MFI is not a priority.

Turbulence and financial markets

1996

Industrial loans and market structure

2003

Abstract Based on the observation that financing is one of the main obstacles to create new firms, this paper deals with the interactions between the market structure of both the banking sector and the borrowing industries. We consider that firms’ installation costs are financed by means of industrial loans from specialized banks. With endogenous entry in banking activity as well as in the borrowing industry, we find that a natural oligopoly emerges in both sectors if the entry cost in the industrial sector is small enough, relative to the banks’ entry cost.

Efectos de la crisis en el crédito comercial concedido y relevancia de la diversificación de la actividad

2014

ResumenEl objetivo de este trabajo es estudiar las razones por las que las empresas manufactureras españolas conceden crédito comercial a sus clientes. Hemos analizado teórica y empíricamente 2 aspectos: el efecto producido por la crisis financiero-económica y la importancia que tiene la diversificación de la actividad y el tipo de cliente al que se le concede el crédito comercial. Las principales conclusiones que obtenemos son, por una parte, que el incremento del crédito comercial concedido en periodo de crisis provoca que las empresas sean menos competitivas, y en segundo lugar aportamos evidencia de que la diversificación de la actividad y el hecho de que los clientes sean más o menos h…