Banks and Bank Systems

Journal Information
ISSN / EISSN : 1816-7403 / 1991-7074
Current Publisher: LLC CPC Business Perspectives (10.21511)
Total articles ≅ 361
Current Coverage
SCOPUS
DOAJ
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Abdul Qayyum Khan, Abdullah Saeed S Alqahtani
Banks and Bank Systems, Volume 18, pp 100-200; doi:10.21511/bbs.16(1).2021.10

Oluwatamilore Omotoye, Kingsley Aderemi Adeyemo, Tumininu Omotoye, Faith Okeme, Andrew Leigh
Banks and Bank Systems, Volume 16, pp 168-181; doi:10.21511/bbs.16(1).2021.15

Abstract:
This paper aims to discover the association between various audit committee and board attributes and the market performance of listed deposit money banks in Nigeria. The study intends to determine the influence of audit committee size, gender diversity, expertise, board size and board shareholding on market performance (measured by Tobin Q). Panel data was gathered from twelve (12) banks listed on the Nigerian Stock Exchange from 2013 to 2017. The study used fixed and random regression analysis. The results concluded that the association between audit committee size, board size and Tobin Q was negatively significant. There was a positively significant impact of audit committee gender diversity and audit committee expertise on Tobin Q. The study showed a positive but insignificant influence of board shareholding on market performance. The results imply that weakness in governance structures might lead to lower market performance. This study recommends that firms ensure that appointment criteria prioritize knowledge and competence, and regulatory bodies are also encouraged to track the compliance of listed firms with corporate governance regulations. AcknowledgmentThe authors would like to acknowledge Covenant University for its financial support during the course of this research paper.
Sri Ayomi, Eleonora Sofilda, Muhammad Zilal Hamzah, Ari Mulianta Ginting
Banks and Bank Systems, Volume 16, pp 205-215; doi:10.21511/bbs.16(1).2021.18

Abstract:
In the financial system and economy, the banking industry plays a crucial role. Default risk takes central stage in preserving financial stability and needs to be mitigated as it can trigger a crisis. The study examines the combined effects of monetary policy and bank competition on banking defaults. Using a sample of 95 commercial banks in Indonesia between 2009 and 2019, this study employs the Generalized Method of Moments, a two-step dynamic panel-data estimation system, to analyze it. Empirical estimation results show that monetary policy, through an increase in the benchmark interest rate, negatively affects probability of default. The extent of banking stability is also enhanced by monetary policy. Banking competition has a negative and significant effect on probability of default and has a positive effect on the banking distance to default. Furthermore, the combined impact of monetary policy and banking competition positively affects probability of default but has a negative impact on the distance of default. Building on this study, to promote a stable and more efficient banking system, policymakers should develop policies that foster complementary monetary and competition policies.
Victor Sukhonos, Yulia Serpeninova, , Viktoriia Levkulych, Galina M. Kolisnyk
Banks and Bank Systems, Volume 16, pp 138-151; doi:10.21511/bbs.16(1).2021.13

Abstract:
An important factor in restoring the confidence of financial consumers in banks is to provide auditors with credible and detailed financial statements and their solvency. This study is a pilot step in clarifying the auditor’s role in ensuring the banks’ reliability as public interest entities in Ukraine. It is aimed at investigating the segmentation of the banking audit services market in Ukraine and its comprehensive characteristics. Structural and dynamic analysis were applied to investigate market, regional and branch concentration, as well as main trends in bank audit market development within the data and registers of the Audit Chamber of Ukraine (ACU) and 75 annual reports of Ukrainian banks. Key aspects of the bank audit market in Ukraine are highlighted: the potential of the bank audit market, the ability of auditors to provide audit services and current characteristics of market conjuncture. Bank audit market is highly segmented: this study differentiates strong segments of international audit networks, associations and alliances, including Big 4 companies and the segment of weak Ukrainian audit companies. Kyiv and Kyiv region are the dominant economic active regions in terms of the regional bank market concentration and the presence of international audit networks. The study results are the basis for improving the regulation of the banking audit services market by the National Bank of Ukraine and ACU.
, Oleksandr N. Kurakin, Pavlo S. Pokataev, Oleksii M. Skriabin, Dmytro B. Sanakoiev
Banks and Bank Systems, Volume 16, pp 69-80; doi:10.21511/bbs.16(1).2021.07

Abstract:
The rapid growth in the number of cybercrimes committed in the banking sector requires the creation of an effective system for preventing such crimes and ensuring the cybersecurity of the state. The constant updating of means and methods for cybercrime commission necessitates the identification of effective measures to combat them. The paper uses a survey method to study the theoretical experience and practical measures to prevent cybercrime in the banking sector to identify effective ways to combat crime in the virtual space of Ukraine. The paper analyzes the experience of the world’s leading countries concerning cybercrime prevention, deals with measures to improve the level of cybersecurity of national and international cyberspace. It is concluded that the current state of cybersecurity in Ukraine does not meet contemporary requirements and needs initiating effective measures and coordinated cooperation between private and public sectors in order to effectively combat cybercrime, in particular: enshrining the classification of cybercrimes in the regulatory legal acts of Ukraine; introduction of the concept of “banking criminal law” in the scientific and legal sphere; creation of Ukrainian cyber forces, whose activities will be aimed at preventing and combating crimes committed in cyberspace.
, Lukmanul Hakim Aziz
Banks and Bank Systems, Volume 16, pp 62-68; doi:10.21511/bbs.16(1).2021.06

Abstract:
This study aims to investigate the impact of COVID-19 on the increase in bad credits at conventional commercial banks in Indonesia. The data used in this study are secondary data sourced from the Ministry of Health and from the Financial Services Authority (OJK), each of which consists of 50 data samples. The data analysis technique used in this study is simple regression analysis to determine the magnitude of the influence of COVID-19 on non-performing loans. The results of the data analysis show that COVID-19 has a significant effect on non-performing loans, and the COVID-19 variable can be used as an external indicator of the increase in non-performing loans for commercial banks in Indonesia. The implication of the research is that other researchers can make COVID-19 an external indicator of an emergency beyond human ability that can affect the level of non-performing loans. For banking, this study can be used as a reference when considering credit risk management policy during the COVID-19 pandemic. AcknowledgmentThe researchers are grateful to University of Sultan Ageng Tirtayasa for financial support. In addition, the authors sincerely apologize for the errors and mistakes found in this paper.
Mohannad Abu Daqar, Milan Constantinovits, Samer Arqawi, Ahmad Daragmeh
Banks and Bank Systems, Volume 16, pp 1-16; doi:10.21511/bbs.16(1).2021.01

Abstract:
This study aims to investigate the role of Fintech in predicting the spread of COVID-19 based on consumers’ Fintech perceptions and behavior before and after the outbreak of COVID-19. The study used a questionnaire-based survey distributed in different countries of the world using the LinkedIn platform for this purpose to reach the targeted population. The snowball sampling technique was used. The study targeted consumers with Fintech experience, especially in digital payments services. 507 samples were retrieved. For the analysis, the Structural Equation Modeling (SEM) was used. The study revealed novel results in predicting COVID-19 spread; these three variables (Fintech Behavior before COVID-19, Fintech Behavior after COVID-19, and Fintech Perception after COVID-19) could predict 52.5% of the variance in the dependent variable (COVID-19 Spread) (R² = 0.525, p < 0.05). The findings show that Higher Fintech perception and behavior among Fintech users will help in reducing the spread of COVID-19 by avoiding the use of contact payment methods. Contactless payment methods are the main tools in Fintech that might help in avoiding the probability of COVID-19 spread. Consumers’ Fintech perceptions and behavior are the most influencing factors that could predict the spread of COVID-19 in this study, where digital payments are the main concern. It is recommended that consumers adopt digital payment methods and tools, especially contactless payment methods, to fulfill their financial services. Other researchers are also encouraged to use the same model to predict the spread of this virus in the Fintech context.
Nguyen Phu Ha
Banks and Bank Systems, Volume 16, pp 127-137; doi:10.21511/bbs.16(1).2021.12

Abstract:
Shares of listed banks in Vietnam gain a lot of interest from investors and regulators. It is important to study the primary drivers of the banks’ share prices. In this context, Gross Domestic Product (GDP), Gold Price (GP), Ninety-day Interbank Interest Rate (R), and USD/VND Exchange Rate (FX) are selected as representatives for macroeconomic variables. A new contribution of this study is the application of interactive factors between macroeconomics and bank performance (i.e., Equity Capital (E), Deposit Аmounts (D), Loan Amounts (L), Non-performing Loans (NPLs), Leverage (LEV), Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Stock Beta (Beta)) in evaluating their impact on bank share prices. Applying the econometric method of Two-Stage Least Square (2SLS) and the quarterly financial data of 13 listed banks from Q1/2009 to Q3/2020, the regression results show that GDP improvements can foster an increase in bank share prices, and this impact is strengthened if banks have good performance of ROA, CAR, and with strict control of NPLs. The R also has a positive impact on bank share prices, and the price level increases if NPLs, LEV, and Beta are controlled at optimal levels. However, empirical evidence drawn from the study also suggests that an increase in FX and GP is not a significant contributor to bank share prices, especially if the bank does not manage NPLs and LEV. Moreover, the impact of E, D, and L on the movements of bank share prices is not significant.
Shankar Babu Mani, Viswanathan Ekambaram
Banks and Bank Systems, Volume 16, pp 195-204; doi:10.21511/bbs.16(1).2021.17

Abstract:
The purpose of this paper is to explore the influence of the cost of borrowing, processing time and documentation on the service quality of banking institutions in India that sanction housing loans. A research framework was designed to consider the independent variables influencing service quality by unearthing research gaps in the extant literature on housing loans. All research gaps were transformed into a questionnaire, to which 535 useful responses were received. A five-point Likert scale was used, and a structural equation model was formulated using ADANCO 2.0.1 – all hypotheses were tested with ADANCO. The findings clearly indicate the relevance of the service quality in banking sectors in India. There is a significant relationship between the three independent variables (cost of borrowing, processing time and documentation) and service quality. The outcome of banking service quality is measured through initial personal contact, online banking services, the humanitarian approach, provision of information for services, promise of service delivery and field verification, with all these measures having a very strong impact. This study is restricted to India only, but could be extended to other developing countries in South Asia in the future. This study could also be extended to cover other types of banking loans offered by banking institutions in India. The paper concludes that it is time for banking institutions to take action to sanction housing loans with a view to introducing the instant sanctioning of bank loans that come with real-time access, without resorting to bureaucratic policies and procedures for housing loan customers.
Oleh Kolodiziev, Mykhailo Krupka, Nataliya Shulga, Myroslav Kulchytskyy, Olha Lozynska
Banks and Bank Systems, Volume 16, pp 81-91; doi:10.21511/bbs.16(1).2021.08

Abstract:
The article examines the competitiveness of Ukrainian banks influenced by economy digitalization, the dynamic spread of electronic payments and e-commerce, as well as innovative technologies aimed at providing digital services. When shifting to an Online Platform business model, a bank can expand its range of banking products, attract more customers, thereby forming a competition policy and gaining competitive advantages. The paper aims to assess the digitalization level affecting the general competitiveness of banks and its components based on Ukrainian banks. For this purpose, the following methods were used: standardized input statistical indicators, comparison and ranking, a cluster analysis, and a regression and correlation analysis. The cluster analysis confirmed the current role of digitalization as a competition driver that determines the competitive advantages of banks and creates additional opportunities to expand the customer base and the range of services. The correlation and regression dependence of the competitive position identified by the activity indicators of certain banks on the level of competitive digitalization confirmed a close direct impact on the competitive position of personal deposits arising from the development of digital banking technology; the pre-tax income, profiles of assets and personal loans, and corporate deposits are subject to a significant direct impact, while the weakest direct impact determines corporate loans. The foregoing substantiates the feasibility of large-scale introduction of innovative digital technologies by banks to maintain competitive positions in the banking sector of the economy. Applying the proposed approach based on certain regression equations, managers of Ukrainian banks will be able to assess the efficiency and make appropriate decisions concerning investing in digital tools and services.
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