Search results for "Retail banking"
showing 10 items of 37 documents
On Some Misconceptions Concerning Digital Banking and Alternative Delivery Channels
2016
A great deal of conceptual confusion surrounds the notions of digital banking and innovative alternative delivery channels that support banking and other financial transactions globally. The authors contend that the concepts of digital banking and associated delivery channels are ambiguous and restrictive; their usability has been undermined and their purpose and objective have, to a large extent, been misunderstood. Against this backdrop, the authors offer an inclusive definition of digital banking and delivery channels and provide logical explanations of these terms that can benefit scholars, the telecommunication sector, the banking industry, policy makers, and service providers (in term…
Structural Reforms in Banking: The Role of Trading
2017
In the wake of the recent financial crisis, significant regulatory actions have been taken aimed at limiting risks emanating from trading in bank business models. Prominent reform proposals are the Volcker Rule in the U.S., the Vickers Report in the UK, and, based on the Liikanen proposal, the Barnier proposal in the EU. A major element of these reforms is to separate "classical" commercial banking activities from securities trading activities, notably from proprietary trading. While the reforms are at different stages of implementation, there is a strong ongoing discussion on what possible economic consequences are to be expected. The goal of this paper is to look at the alternative approa…
Social Network Banking : A Case Study of 100 Leading Global Banks
2018
Social media is widely recognized as a challenging new communication technology in both economic and social contexts. The present article explores how banks have exploited this technology in the range of consumer retail banking services offered by 100 leading global banks on the three major social networking sites (SNS): Facebook, Twitter, and YouTube. Viewing social network (SN) banking as a separate delivery channel and offering a working definition of SN banking, the article shows that banks have been more cautious than other businesses in using SNS. The available services are classified on nine main dimensions: marketing, financial education and advice, information support, customer sup…
The social costs of bank market power: Evidence from Mexico
2008
This paper estimates the social costs of market power (Harberger's triangle) in the Mexican banking system over the period 1993–2005. It also tests the so-called “quiet life” hypothesis which postulates a negative effect of market power on bank management efficiency. The social cost attributable to market power in 2005 is 0.15% of GDP, while that deriving from the cost (profit) inefficiency of banking management is 0.021% (0.075%) of GDP. The results allow us to reject the quiet life hypothesis in the deposits market. However, market power in the setting of the interest rate on loans has a negative effect on cost efficiency. Journal of Comparative Economics 36 (3) (2008) 467–488.
The Effect of Specialisation on Banks' Efficiency: An International Comparison
2006
Abstract This study analyses the effects of specialisation on the cost efficiency of a set of banking systems of the European Union over the period 1992–1998. Unlike in the established literature in which specialisation differences are not considered, in this paper cost inefficiencies are decomposed into two different components: the first is related to the inefficiency associated with the composition of specialisations in each banking system and the second is related to specific inefficiencies of banks within their specialisation. The results show the existence of high cost inefficiencies. However, the intra‐specialisation inefficiencies indicate that the inefficiencies of the European ban…
The impact of multinational banking on domestic banking
2006
Post-Keynesians have made endogenous money a central argument in their theory of output. Indeed, production cannot be undertaken if access to finance, usually meaning bank credit, does not exist. Such access is needed if wages are to be paid, and inputs of production purchased. In a monetary economy, therefore, money is created at the demand of borrowers, supplied by banks.
Model for Evolution of a Vertical Software Industry
2009
The interaction of the primary and secondary software industries appears to follow a common pattern, which has been described in the model for evolution of a vertical software industry (Tyrvainen et al. 2008). The evolution is seen as iterating through several phases, shown in Fig. 1 and described below.
Income structure, profitability and risk in the European banking sector: The impact of the crisis
2017
This study sets out to analyse whether the effect of the income structure on the risk and profitability of European banks has changed as a result of the crisis and if it varies according to banks’ specialisation in a particular type of banking business. To do so, it estimates the income structure over the period 2002–2012 using data for a panel of European banks. The study also examines if there are differences between investment-oriented banks and banks specialising in financial intermediation in terms of the effect of income structure on risk and profitability. Our findings show that an increase in the share of non-interest income has a negative impact on profitability, although the effec…
Competition, risk taking, and governance structures in retail banking
2005
This paper investigates the extent to which the linkages between bank performance and governance structure affect deposits market competition and risk taking incentives when commercial banks compete with organizations with objectives different from profit maximization. These organizations include savings banks whose corporate and ownership structure yields an objective function that can incorporate labour expenses. It is found that such objective function enables the savings banks to capture a greater market share of bank deposits and to take on relatively less risk in their portfolio of investments. The empirical evidence from the Spanish retail banking sector documents these conclusions.
Notice of Retraction Managing banks' asset and loan portfolios
2011
Given the important role of the banking system in redistributing resources in the economy, a stable banking system is absolutely essential for sustainable development. This paper describes the dynamics of the volume and profitability of assets in Latvian banking system and develops a rating system to evaluate these indicators. After the empirical analysis, it discusses management strategies that Latvian commercial banks can follow to improve their quality of assets in the future.