scholarly journals Corporate governance and risk management in the banking sector

2019 ◽  
Author(s):  
Χριστίνα Μαυρακάνα
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Banking Sector ◽  
Fraser Institute

Η πρόσφατη παγκόσμια χρηματοπιστωτική κρίση έχει εγείρει ερωτήματα σχετικά την αποτελεσματικότητα της εταιρικής διακυβέρνησης και του κανονιστικού πλαισίου των τραπεζών. Λαμβάνοντας υπόψη ότι οι τράπεζες έχουν κάποια ιδιαίτερα χαρακτηριστικά τα οποία επηρεάζουν και αλληλεπιδρούν με τους μηχανισμούς της εταιρικής διακυβέρνησης, δεν αποτελεί έκπληξη το γεγονός ότι κατά τη διάρκεια της χρηματοπιστωτικής κατάρρευσης πολλοί οικονομολόγοι και υπεύθυνοι χάραξης πολιτικής μεταξύ άλλων, αμφισβήτησαν τη διακυβέρνηση των τραπεζών και ιδιαίτερα τον ρόλο του διοικητικού συμβουλίου. Η καλή εταιρική διακυβέρνηση σε συνδυασμό με την κατάλληλη κανονιστική ρύθμιση οδηγούν σε υγιή τραπεζικά ιδρύματα. Ωστόσο, παρά το αυξημένο ενδιαφέρον σε αυτόν τον τομέα, τα αποτελέσματα από τις προηγούμενες εμπειρικές μελέτες που επικεντρώθηκαν στον αντίκτυπο της εταιρικής διακυβέρνησης στον τραπεζικό τομέα είναι μεικτά και, ως εκ τούτου, κρίνεται απαραίτητη η περαιτέρω διερεύνησή τους. Σε αυτή την κατεύθυνση, η διατριβή αυτή αποτελείται από δύο δοκίμια. Το πρώτο δοκίμιο εξετάζει τη σχέση μεταξύ της εταιρικής διακυβέρνησης, της απόδοσης και του κινδύνου των τραπεζών. Το δεύτερο δοκίμιο μελετά εάν και σε τι βαθμό η οικονομική ελευθερία μιας χώρας αλλά και η πιστωτική, εργασιακή και επιχειρηματική ρύθμιση επηρεάζουν την απόδοση και τον κίνδυνο του τραπεζικού συστήματος. Πιο συγκεκριμένα, το πρώτο δοκίμιο ερευνά τις επιπτώσεις των χαρακτηριστικών του διοικητικού συμβουλίου στην απόδοση και τον κίνδυνο των τραπεζών. Χρησιμοποιώντας διαφορετικές οικονομετρικές μεθόδους και διάφορα μέτρα απόδοσης και κινδύνου, προσφέρουμε νέα εμπειρικά στοιχεία καθώς χρησιμοποιούμε ένα δείγμα ευρωπαϊκών τραπεζών για την χρονική περίοδο 20042016. Επιπλέον, προσθέτουμε στην υπάρχουσα βιβλιογραφία καθώς εξετάζουμε το σύστημα της εταιρικής διακυβέρνησης για πρώτη φορά ενώ ελέγχουμε επίσης για τυχόν διαφορές στη διάρθρωση του διοικητικού συμβουλίου, λαμβάνοντας υπόψη την χρονική περίοδο και την χώρα στην οποία εδρεύουν οι τράπεζες. Τα αποτελέσματά μας δείχνουν ότι τα χαρακτηριστικά του συμβουλίου έχουν σημαντικό αντίκτυπο τόσο στην απόδοση όσο και στον κίνδυνο των τραπεζών. Συγκεκριμένα, διαπιστώνουμε ότι στις περισσότερες περιπτώσεις οι γυναίκες διευθυντές, η χρηματοοικονομική εμπειρία, το ενιαίο σύστημα εταιρικής διακυβέρνησης, η αποζημίωση και το μέγεθος του διοικητικού συμβουλίου συμβάλουν στην χρηματοοικονομική σταθερότητα ενώ σύναμμα οδηγούν σε υψηλότερα επίπεδα απόδοσης. Ωστόσο, τα αποτελέσματα μπορεί να διαφέρουν ανάλογα με την χώρα λειτουργίας του τραπεζικού ιδρύματος και την χρονική περίοδο. Στο δεύτερο δοκίμιο εξετάζουμε τον αντίκτυπο της οικονομικής ελευθερίας και της ρύθμισης, στην απόδοση και τον κίνδυνο των τραπεζών. Συγκεκριμένα, χρησιμοποιούμε τον δείκτη οικονομικής ελευθερίας του Fraser Institute καθώς και τις επιμέρους συνιστώσες του, δηλαδή τον πιστωτικό, εργασιακό και επιχειρηματικό κανονισμό. Το συγκεκριμένο δοκίμιο αποτελεί την πρώτη προσπάθεια που εξετάζει την επίδραση των μεταβλητών της εταιρικής διακυβέρνησης σε συνδυασμό με τον δείκτη οικονομικής ελευθερίας και τους πιστωτικούς, εργασιακούς και επιχειρηματικούς κανονισμούς. Μέσω της έρευνας αυτής, θέλουμε να ελέγξουμε για τυχόν διαφορές σε ότι αφορά τον αντίκτυπο της διάρθρωσης του διοικητικού συμβουλίου στην απόδοση και τον κίνδυνο των τραπεζών, όταν λαμβάνουμε υπόψη και μακροοικονομικούς παράγοντες. Απώτερος σκοπός, είναι να καταλήξουμε σε πιο ισχυρά αποτελέσματα σχετικά τους μηχανισμούς της εταιρικής διακυβέρνησης. Πράγματι, τα ευρήματά μας δείχνουν ότι ο τρόπος με τον οποίο τα χαρακτηριστικά του διοικητικού συμβουλίου επηρεάζουν την απόδοση και τον κίνδυνο των τραπεζών, διαφέρει ανάλογα με το εάν το τραπεζικό σύστημα λειτουργεί σε ένα φιλελεύθερο ή αυστηρό περιβάλλον.

The Influence of Risk Management, Third-Party Funds and Capital Structure on Banking Sector Financial Performance in Indonesia and Thailand with Corporate Governance as Moderating Variable in 2015-2019

2021 ◽  
pp. 71-80
Author(s):  
Nurtika Ekawati ◽  
◽  
Unggul Purwohedi ◽  
Ari Warokka ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Partial Least Square ◽  
Third Party ◽  
Return On Assets ◽  
Study Results

The banking sector plays an important role in the country's economic growth. International experience shows that a weak banking sector not only threatens the long-term stability of a country's economy. It can also cause a financial crisis which can lead to economic crisis. Therefore, it is important to identify and investigate the factors on which the financial performance of banks depends. The purpose of this study is to analyze the influence of risk management, third-party funds and capital structure on banking sector financial performance in Indonesia and Thailand with corporate governance as moderating variable. The authors use return on assets (ROA) as the key indicator of bank efficiency. The data used in this study are secondary data, including nonperforming loan (NPL), loan-to-deposit ratio (LDR), operating expenses to operating income (BOPO), net interest margin (NIM), third party funds (TPF), debt-to-equity ratio (DER), return on assets (ROA), corporate governance. The data was obtained from the official website of the Indonesia Stock Exchange (www.idx.co.id) and the Thai Stock Exchange (www.set.or.th). The sample used in this study is 20 conventional banks listed on the Indonesia and Thailand Stock Exchange from 2015-2019. The methodological basis of this study is the use of the Structural Equation Model (SEM) with Partial Least Square (PLS). Data processing was performed in the WarpPLS 7.0 software. The study results show that NPL and LDR have a negative and significant influence on the financial performance of banks. At the same time, the BOPO and DER do not affect the financial performance of banks. The NIM and TPF have a significant and positive influence on the bank's financial performance. In addition, corporate governance does not moderate risk management relationship to the bank's financial performance. The results of this study can benefit bank shareholders and customers, and bank management.

scholarly journals Editorial: Governance, risks and rules between theoretical studies and empirical analyses

2020 ◽  
Vol 10 (1) ◽  
pp. 4-6
Author(s):  
Stefano Dell’Atti
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Interest Rates ◽  
Information Disclosure ◽  
Banking Sector ◽  
Social Indicators ◽  
Bank Regulation ◽  
Careful Analysis ◽  
Governance System ◽  
System Risk

The first issue of the journal in 2020 (volume 10, issue 1) provides a careful analysis of the important field of research regarding the social indicators, the corporate governance system, risk analysis and risk management, disclosure and bank regulation. Specifically, the current issue pays attention of an index to measure the quality of the most important European cities, the evolution of Saudi Arabia corporate governance systems, the econometric approach to estimate the influence of interest rates and inflation rates on default rates of banks, the Canadian companies and risks firms disclose, the relevance of enterprise risk management (ERM) information disclosure in the US banking sector and the bank regulation of capital and risk management in the Europe and Central Asia region.

Oman’s Islamic Banking Regulatory Framework: The Corporate Governance of Sharīʿa Compliance in a New Jurisdiction

2015 ◽  
Vol 29 (2) ◽  
pp. 101-137
Author(s):  
Scott Morrison
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Central Bank ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Islamic Banking ◽  
Sultanate Of Oman

This article sets out and comments upon those aspects of the Islamic Banking Regulatory Framework (ibrf) that pertain to Sharīʿa compliance and the corporate governance of that compliance in the newly introduced (since 2012) Islamic banking sector in the Sultanate of Oman. The relevant authority, the Central Bank of Oman, has indisputably demonstrated the premium that it attaches to consistent and dependable Sharīʿa risk management and reduction with its development of the ibrf. This article inventories and analyses the array of regulatory techniques contained in the ibrf. It also identifies some areas of potential reform.

scholarly journals Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries

2019 ◽  
Vol 10 (5) ◽  
pp. 126
Author(s):  
Amzad Hossain ◽  
Farid A. Sobhani ◽  
Normah Omar ◽  
Norazida Mohamad ◽  
Jamaliah Said
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Management Practices ◽  
Banking Sector ◽  
Internal Audit ◽  
Ethical Investment ◽  
Responsible Investment ◽  
Good Corporate Governance ◽  
Governance Risk

Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board’s structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.

scholarly journals Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public

2018 ◽  
Vol 10 (2) ◽  
pp. 161-174
Author(s):  
Deograsias Yoseph Y.F.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Banking Sector ◽  
Banking Industry ◽  
Good Corporate Governance ◽  
Risk Management System ◽  
Integrated Risk ◽  
Governance Practices ◽  
External Conditions ◽  
Integrated Risk Management

The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which  were  increasingly  troubled  by  the  threatening  risks,  Bank  Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly.  As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a  bad  situation  occurs.  With  the  increasingly  complex  risks  in  the  banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.

scholarly journals Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public

2019 ◽  
Vol 10 (2) ◽  
pp. 161-174
Author(s):  
Deograsias Yoseph Y. F.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Banking Sector ◽  
Banking Industry ◽  
Good Corporate Governance ◽  
Risk Management System ◽  
Integrated Risk ◽  
Governance Practices ◽  
External Conditions ◽  
Integrated Risk Management

The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which  were  increasingly  troubled  by  the  threatening  risks,  Bank  Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly.  As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a  bad  situation  occurs.  With  the  increasingly  complex  risks  in  the  banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.

scholarly journals Risk management debate focused on banking industry

2013 ◽  
Vol 1 (1) ◽  
Author(s):  
Eugenia Ana Matis ◽  
Cosmin Dumitru Matis ◽  
Jiří Strouhal
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Institutions ◽  
Historical Perspective ◽  
Banking Sector ◽  
Banking Industry ◽  
Basel Ii ◽  
Basel Iii ◽  
Healthy Growth ◽  
Broad Interest

Corporate governance is a subject of constant timeliness and broad interest, mainly aimed at ensuring adequate protection for investors and financial institutions. This interest in corporate governance is due to its influence on the healthy growth of companies and society as a whole. Paper provides evidence on implementation of Basel II and Basel III within Romanian banking sector from the historical perspective trying to show an overview on Basel developments and encourages further investigations into the particularities of the Basel III which is soon to be put into practice.

scholarly journals Does Good Corporate Governance Mediate Risk Management Implementation and Financial Performance of Indonesian Commercial Banks?

2021 ◽  
Vol 56 (3) ◽  
pp. 457-472
Author(s):  
Haryetti Haryetti ◽  
Andewi Rokhmawati
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Risk Mitigation ◽  
Enterprise Risk Management ◽  
Good Corporate Governance ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Potential Risks

This study examines the effect of risk management implementation on financial performance mediated by good corporate governance in the banking sector. The research design is quantitative research, which employs a mediating regression analysis in which good corporate governance is a mediating variable between risk management implementation and financial performance. By using a purposive sampling technique, this study includes 21 banks listed on the Indonesian Stock Exchange. The research results are that enterprise risk management implementation has a significant positive effect on good corporate governance. Enterprise risk management implementation has no significant impact on financial performance. Good corporate governance has a significant influence on financial performance. Finally, good corporate governance mediates enterprise risk management on financial performance. The contribution of this research is laid on the usage of content analysis to identify what kinds of banks' risks have a potency to expose banks to particular risks, as well as the examination of the role of good corporate governance as a mediating variable of the effect of risk management on financial performance. Banks should explicitly provide some information about the potential risks, risk appetite, risk measurement, and potential risk mitigation. Information on how the Good Corporate Governance responds to the foreseen potential risks is recommended.

Russian Banking Sector: Issues of Consolidation and Corporate Governance

2005 ◽  
pp. 65-75 ◽  
Author(s):  
A. Murychev
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Competitive Advantages ◽  
Regional Banks

The article analyzes urgent issues of the development of Russian banks. The probability of Moscow banks' regional expansion is noted. Hence the necessity for regional banks to find market niches. Competitive advantages of small and medium-sized banks as well as barriers to their activity are considered. Special attention is paid to the problems of corporate governance in banks. The results of the survey conducted by the Association of Regional Banks of Russia in summer of 2004 are analyzed.

The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia

2018 ◽  
Vol 15 (2) ◽  
pp. 1-20
Author(s):  
Sabri Embi ◽  
Zurina Shafii
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Principal Component ◽  
T Test ◽  
The Body ◽  
Primary Data ◽  
Islamic Banks ◽  
Shariah Governance ◽  
The Impact

The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.

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