scholarly journals DETERMINANTES E IMPACTOS DA RECENTE ENTRADA DE BANCOS EUROPEUS NO BRASIL

2004 ◽  
Vol 30 (2) ◽  
Author(s):  
Luiz Fernando De Paula
Keyword(s):  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Banks ◽  
Recent Period ◽  
Banking Market ◽  
European Banks ◽  
Legal Restrictions ◽  
Main Determinants ◽  
Domestic Banks

Este artigo objetiva analisar os principais determinantes e impactos da recente onda de bancos europeus no Brasil. A principal hipótese do artigo é que a onda de bancos europeus só pode ser entendida se forem considerados ambos os fatores externos e internos. Os determinantes externos estão relacionados ao processo de consolidação bancária no sistema financeiro europeu no contexto da União Monetária Européia, que tem estimulado alguns bancos a se expandirem para o exterior. Os determinantes internos, por sua vez, estão relacionados principalmente à gradual flexibilização das restrições legais, com respeito à presença dos bancos estrangeiros no setor bancário brasileiro. Finalmente, o artigo também avalia os impactos da entrada recente dos bancos europeus no mercado bancário varejista brasileiro. Neste particular, ele mostra que a entrada estrangeira tem afetado o mercado bancário doméstico, forçando os bancos nacionais a operarem de forma mais eficiente e também a expandir suas atividades, organicamente ou por fusões e aquisições. O paper conclui que não existe evidência de que os bancos estrangeiros são mais eficientes do que os bancos domésticos no Brasil no período recente, mas existe alguma evidência de que os maiores bancos privados nacionais têm reagido positivamente à entrada dos bancos estrangeiros. Abstract This paper aims at analyzing the main determinants and impacts of the recent wave of European banks entering Brazil. The principal hypothesis of the paper is that the wave of European banks can only be understood if one considers both external and internal determinants. External determinants concern the process of banking consolidation in the European financial system under the EMU that has stimulated some banks to expand abroad. Internal determinants are mainly related to the gradual flexibilisation of legal restrictions with respect to the presence of foreign banks in the Brazilian banking sector. Finally, the paper evaluates the impacts of the recent entry of European banks into the retail banking market in Brazil. In this particular matter, it shows that foreign entry has affected the national banking market, forcing domestic banks to operate more efficiently, and also to expand their activities organically or by mergers and acquisitions. The paper concludes that there is no clear evidence that foreign banks have been more efficient than domestic banks in Brazil in the recent period, but there is some evidence that the big private Brazilian banks have reacted positively to the entry of foreign banks.

Brazil banks will stay cautious amid fragile recovery

2017 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Risk Averse ◽  
Public And Private ◽  
Content Type ◽  
Private Banks ◽  
Public And Private Sector

Subject Outlook for the banking sector. Significance The two-year recession has made Brazil’s public- and private-sector banks increasingly risk-averse in their lending to households and companies. This is likely to persist in 2017, owing to a very uncertain and fragile economic recovery, high unemployment and elevated levels of private-sector debt. Impacts Less-aggressive lending by national state banks will help public finances and give private banks a chance to increase market share. Spanish Santander will be the only foreign bank capable of competing in Brazil’s retail banking segment in the coming years. Other foreign banks lacking the necessary scale for profitable retail banking will focus on other niches.

scholarly journals Privatization and Profit Efficiency: Evidence from Commercial Banks of Pakistan

2018 ◽  
Vol 8 (1) ◽  
pp. 1-14
Author(s):  
Samina Sabir ◽  
Abdul Qayyum
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Random Effect ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Foreign Banks ◽  
Profit Efficiency ◽  
Cost Efficient ◽  
Domestic Banks ◽  
The Cost

This paper investigates the profit efficiency of commercial banks where the banking sector has completed more than two decade of changeover from nationalization policy to privatization and restructuring policy by employing stochastic frontier true effect and true random effect models. Intermediation approach has been used to choose input and output variables of banks. A balanced panel data of 22 commercial banks of Pakistan over the period 1995-2014 have been used for the empirical analysis. The paper found that commercial banks are on average 73% profit efficient. However foreign banks report high profit efficiency score followed private domestic banks and then state owned banks. We also compared the cost and profit efficiency of commercial banks and found that commercial banks are more cost efficient than profit efficient.

scholarly journals Factors Affecting Cost Efficiency in the Banking Sector of Kyrgyzstan

2017 ◽  
Author(s):  
Dastan Aseinov
Keyword(s):  
Economic Efficiency ◽  
Cost Efficiency ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Foreign Banks ◽  
Data Set ◽  
Factors Affecting ◽  
Domestic Banks ◽  
The Impact

Instabilities in the banking sector have had an adverse effect on the economy as a whole, since the largest share in the financial system and financial intermediation in Kyrgyzstan have been captured by banking sector. Economic efficiency in banking can be viewed as a source of financial stability of banking system. Economic efficiency of the banking is more important challenge not only for shareholders and managers of banks, and also for regulation and supervision authorities, and public and potential investors. The aim of this study is to examine factors affecting the banking cost efficiency for Kyrgyz banks. It is also important to choose the appropriate approach in measurement of banking cost efficiency, since there are many different methods. In this study preferred stochastic frontier approach which assumes random error term which captures sampling, measurement and specification errors. We adopted stochastic cost frontier model proposed by Battese ve Coelli (1995) which also allow to examine investigate the impact of variables on efficiency. We used unbalanced panel data set captured 17-23 Kyrgyz commercial banks for period of 2000-2013. Obtained results suggest that capitalization, foreign ownership, credit risk, liquidity risk and currency risk have most influence on cost efficiency scores of banks calculated averagely at level of 0,766. Overall results indicate that domestic banks more cost efficient than domestic private and foreign banks. Average cost efficiency scores of domestic banks, foreign and separately public banks are 0,848; 0,649 and 0,875, respectively.

Bank lending and bank relationships in China: guanxi or commercial?

2017 ◽  
Vol 43 (4) ◽  
pp. 425-439 ◽  
Author(s):  
Wei Yin ◽  
Kent Matthews
Keyword(s):  
Transition Economy ◽  
Bank Lending ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Relationship Banking ◽  
Content Type ◽  
Banking Market ◽  
Bank Ownership ◽  
Domestic Banks ◽  
Relationship Of

Purpose China as a main emerging and transition economy has since 2006 opened up its banking market to foreign competition. Thus far, the penetration of foreign banks has been only moderate with around 2 per cent market share of the total banking market, despite the widely held view that foreign banks operate at a higher level of efficiency and that Chinese state-owned banks (SOBs) operate at a lower level of efficiency. The purpose of this paper is to explore the relationship between bank ownership and the lending behaviour and relationship banking that stems from the Chinese tradition of “guanxi”. Design/methodology/approach Based on three bank types the authors construct a model of the choice of bank type and show how that model can be estimated using a multinomial logit. The authors assume that firms choose a bank type as a function of firm characteristics (Berger et al., 2008; Ongena and Sendeniz-Yüncü, 2011), deal terms (Machauer and Weber, 2000; Ziane, 2003), and industry classification (Uchida et al., 2008; Ongena and Sendeniz-Yüncü, 2011). Findings This paper finds the existence of a close banking relationship of a “guanxi” type between SOBs and state-owned enterprises (SOEs). This is shown up in the form of better deal terms for the SOE. In the case of foreign banks the authors find that a foreign bank-foreign owned enterprise relationship exists but this is based on risk quality and no advantages in deal terms, which suggest a more commercial-based relationship. The empirical findings are that transparent and high-quality firms are likely to engage with foreign banks, while state-owned firms are more likely to engage with SOBs. Originality/value In China, few studies have addressed the potentially important role of bank ownership on lending behaviour (e.g. Firth et al., 2008; Berger et al., 2009). The authors extend the analysis by distinguishing not only between foreign and domestic banks, but also between SOBs and other domestic banks. This research seeks to enhance the understanding of bank ownership, lending behaviour and relationship banking.

scholarly journals FORMATION OF COMPETITIVE ADVANTAGES IN THE BANKING SECTOR THROUGH THE USE OF CORPORATE ENTREPRENEURSHIP TOOLS

2021 ◽  
Vol 9 (4) ◽  
pp. 117-132
Author(s):  
A. N. Kuznetsov
Keyword(s):  
Market Share ◽  
Banking Sector ◽  
Corporate Entrepreneurship ◽  
Operational Efficiency ◽  
Retail Banking ◽  
Competitive Advantages ◽  
Strategic Positioning ◽  
Banking Services ◽  
Banking Market ◽  
Credit Institutions

The competitiveness of credit institutions in the retail banking market lies in their ability to conduct business in this market in order to obtain the highest possible market share and profits. Achieving these goals is linked to the level of operational efficiency and strategic positioning or differentiation of banking services. Consider the tools of corporate entrepreneurship that form competitive advantages in the banking sector.

scholarly journals KEY TRENDS IN EUROPEAN RETAIL BANKING AND PROSPECTS FOR THEIR DEVELOPMENT IN UKRAINE

2019 ◽  
pp. 140-153
Author(s):  
Serhiy KYRYLENKO
Keyword(s):  
Financial Services ◽  
Western Europe ◽  
Banking Sector ◽  
Retail Banking ◽  
New Information ◽  
Banking Business ◽  
European Banking ◽  
Marketing Tool ◽  
Domestic Banks ◽  
Further Development

The modern banking sector of Ukraine is subject to technological influences from the financial services market of Western Europe. The article identifies key strategic directions for banking business development in the conditions of rapid technological change and transformation of the financial service consumption model. The study aims to identify the modern tendencies in banking and the prospects for implementing separate models and instruments in view of the realities of the domestic retail banking practice. The study reveals the main principles of building customer-oriented strategies in European banking. The author studies practical aspects of using new information technology as a marketing tool in the context of sales growth in the retail banking sector. In having performed the analysis of the world experience and its impact on the marketing models of domestic banks, the author identifies and suggests main directions for further development of the domestic banks that are focused on providing services to private individuals and population in general.

scholarly journals Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks

2017 ◽  
Vol 9 (6) ◽  
pp. 38 ◽  
Author(s):  
Werner Bönte ◽  
Ute Filipiak ◽  
Sandro Lombardo
Keyword(s):  
Institutional Environment ◽  
Retail Banking ◽  
Individual Characteristics ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Highly Educated ◽  
Internet Radio ◽  
Domestic Banks ◽  
Indian Banks ◽  
Customer Trust

Prior research suggests that trust plays an important role in an individual’s decision to participate in financial markets. This paper focuses on potential customers in retail banking markets and empirically investigates their trust in foreign banks and domestic banks. We argue that differences in customer trust can be related to three factors, namely bank-specific characteristics, individual characteristics of the potential customer and characteristics of the institutional environment. Using a large survey on the savings patterns of Indian households, we find that potential retail banking customers in India are less likely to trust foreign banks with their money than private Indian banks. However, our results also suggest that highly educated Indians using information sources such as the Internet, radio or newspaper, tend to have more confidence in foreign banks than in private Indian banks. Moreover, in regions with either more foreign bank branches or higher corruption levels the likelihood of consumers trusting Indian private banks more than foreign banks is lower than in other regions.

Directors’ remuneration, governance and performance: the case of Malaysian banks

2015 ◽  
Vol 41 (1) ◽  
pp. 26-44 ◽  
Author(s):  
Siew Peng Lee ◽  
Mansor Isa
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Positive Association ◽  
Multivariate Regression Analysis ◽  
Foreign Banks ◽  
Causality Test ◽  
Content Type ◽  
And Performance ◽  
Domestic Banks ◽  
The Relationship

Purpose – The purpose of this paper is to examine the association between directors’ remuneration and performance and corporate governance in the Malaysian banking sector, using panel data for 21 banks over the period 2003-2011. Design/methodology/approach – The authors use multivariate regression analysis to examine the relationship between directors’ remuneration and performance and corporate governance. The authors also run Granger causality test to determine the existence of causality between directors’ remuneration and performance. Findings – The authors find clear evidence of a positive association between directors’ remuneration and performance. Further, the causality test reveals that directors’ remuneration tends to Granger-cause performance. In terms of governance variables, the authors find that directors’ remuneration is positively related to the percentage of independent directors, and negatively related to board size, but unrelated to duality and percentage of director share ownership. The authors also find that remuneration is positively related to bank size and negatively related to capital ratio. The evidence also shows that foreign banks perform better than domestic banks despite the relatively lower pay received by their directors. Practical implications – The findings imply that high-quality directors, as implied by their remuneration packages, are a significant determinant of performance. Originality/value – The results of this study provide new evidence concerning the relationship between directors’ remuneration and performance in the banking sector in Malaysia.

scholarly journals PREDICTING THE EFFICIENCY OF COMMERCIAL BANKS IN BANGLADESH

2021 ◽  
Vol 7 (1) ◽  
pp. 17-30
Author(s):  
Md. Golam Solaiman ◽  
Md. Shahnur Azad Chowdhury ◽  
Basharat Hossain ◽  
Sultana Akter ◽  
Md. Kazi Golam Azam
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Returns To Scale ◽  
Allocative Efficiency ◽  
Efficiency Score ◽  
Jel Classification ◽  
Foreign Banks ◽  
Scale Efficiency ◽  
Domestic Banks ◽  
Variable Returns To Scale

This paper examines the efficiency of the thirty-six commercial banks (27 Domestic and 9 Foreign Banks) by reviewing Literature and analyzing 6 years (2011-2016) data. The sample was selected based on the availability of data.  It is assumed that the banking sector complies with the variable returns to scale (VRS) approach which means the output of a bank is not proportionately related to its inputs. Therefore, VRS in the ‘Data Envelop Analysis (DEA)’ technique has been employed in this paper. The findings reveal that most (30 banks out of 36 banks) of the banks of Bangladesh are inefficient in terms of technical, allocative, and scale efficiency during the 2011-2016 periods. Conversely, only six banks (4 domestic banks and 2 foreign banks) were found efficient in overall scores in this scrutinization. This study did not find any single bank as efficient in all categories (allocative efficiency, technical efficiency, pure efficiency ratio) for the whole study period (2011-2016). This paper provides valuable intuition, analysis, and comments to the managers and policymakers of the bank’s efficiency score so that they comprehend their position. Finally, this paper suggests necessary steps to transform the inefficient banks into efficient banks, and to make stable the banking sector of Bangladesh. JEL Classification Codes: E51, G21, M1.  

scholarly journals Merger & acquisition in the banking sector

2020 ◽  
pp. 19-23
Author(s):  
Liudmyla SKALOZUB
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Markets ◽  
World Economy ◽  
Banking Sector ◽  
Banking System ◽  
Advantages And Disadvantages ◽  
Current State ◽  
Banking Market ◽  
European Banking ◽  
Banking Institutions

Nowadays there is a considerable amount of information in the literature about mergers and acquisitions of companies in various business fields which gives the world economy an incentive for mergers and acquisitions of financial institutions – banks, which, having large assets, control economic processes in individual countries. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The purpose of the article is to investigate the processes of mergers and acquisitions of banks in the Ukrainian and European financial markets. The current market conditions dictate strict rules not only for entry, but also for the functioning of banks in their segment. Globalization processes in today's world are one of the prerequisites for increasing the number of mergers and acquisitions concluded in the banking sector. The article examines the current state of the market of mergers and acquisitions in the banking sector of Europe and Ukraine. The experience of merging banking structures is examined, the advantages and disadvantages of concluding agreements are identified, factors that may trigger merger or acquisition agreements are identified. The merger or acquisition agreements concluded on the European banking market have been analyzed. By analyzing the concluded M&A agreements in the European banking market, we can say that the value of such agreements is gradually reduced over the period 2012-2017. The practice of merger and acquisition agreements in the banking sector of Ukraine is analyzed. Crises in the banking sector and the Ukrainian economy as a whole make it possible to say that investors are less interested in the domestic banking system, which indicates that it is impossible to increase the number of mergers and acquisitions of domestic banking institutions. It is worth noting that there are currently about 100 banks in Ukraine that are declared insolvent, and a significant amount of non-performing loans can be a serious deterrent to increasing M&A transactions.

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