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Purpose: This study aims to investigate the efficiency of Indian commercial banks from 2002 to 2018 using the stochastic frontier analysis. Design/methodology/approach: This study uses the parametric approach of the stochastic frontier to examine the technical efficiency of banks acknowledging exogenous shocks, omitted variables and measurement errors, filling a gap in the existing financial literature. The scope of this study was constrained to 71 scheduled commercial banks to make it manageable and productive with 1,036 observations. Findings: The results show that the mean technical efficiency of new private banks remained constant at 92.7% during the study period because of technology diffusion in banking systems. The technical efficiency of the nationalized, old private and foreign banks has enhanced over the period because of the efficient utilization of various innovative information technology services such as mobile banking, cheque truncation system, magnetic ink character recognition. However, the foreign banks are still laggards with a mean technical efficiency of 81.7%. The empirical findings suggest that new private sector banks depict higher efficiency than nationalized, old private and foreign banks. Research limitations/implications: This study's sample represents all categories of banks (public, private and foreign) including the banks that merged or consolidated during the period of study. To achieve the desired results, the authors incorporate the consolidated and merged banks in their data set. Further, the authors excluded all scheduled small finance banks and scheduled payment banks from their analysis, as these entities commenced operations post-2015. Additionally, the authors also excluded regional rural banks because of their distinct mandate aimed at servicing the rural populace and agricultural sector. Originality/value: This study contributes to the literature on the performance of conventional banks in general and emerging markets, in particular, using the most recent data and covering a relatively long period using the stochastic frontier approach. [ABSTRACT FROM AUTHOR]

The article looks at four phases of state engagement in financial inclusion. The first phase of involvement is classified as nationalisation, where the state takes control of both the strategic and operational control of a significant part of the market. The second phase is where the state can test the viability by retaining control but distinguishing between the departmental approach and a special purpose vehicle, which works on market principles. The third phase comes when the state is convinced that the market principles operate and therefore a part of the pie could be occupied by the market players, and the final phase is where the state can theoretically operate through policy and regulation without active participation in the market. The article looks at the evolution of the Indian banking sector through these four phases and concludes that we have passed the nationalisation phase. The state-owned Regional Rural Banks and the entire cooperative and community-owned structures are in the corporatisation phase that needs recapitalisation backstopping from time to time. The state-owned commercial banks have reached the disinvestment phase, and commercial banking in India, including the universal banks and the small finance banks, is in the privatisation phase. JEL Codes: D63, G18, G20, G21, G28, L32, L38 [ABSTRACT FROM AUTHOR]

Limited research exists on business transformation strategy within the Indonesian banking sector, particularly regarding regional development banks, which play a crucial role in regional economic advancement. This study investigates the drivers of successful business transformation in Indonesian RDBs and their impact on organizational performance, examining the moderating role of regional government intervention. Employing structural equation modeling, the study analyzed data from 255 branch managers across 27 RDBs. Results reveal that talent development, transformational leadership, and digital adoption significantly drive successful business transformation, which in turn enhances organizational performance. Contrary to expectations, regional government intervention did not demonstrate a moderating effect. This study provides valuable insights for RDB managers and policymakers, emphasizing the imporace of talent development, leadership, and digital adoption as key pillars of successful transformation and highlighting the need for a nuanced understanding of institutional influences within this sector. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine how the rise of financial technology (Fintech) lending affects bank competition. Moreover, this study also identifies the structure of Indonesian commercial banking sector and the different behaviour of competition among bank groups (based on their size, type and ownership) and the joint impact of COVID-19 due to the rise of Fintech lending. Design/methodology/approach: Using an unbalanced panel data set of 118 commercial banks in Indonesia over the period 2018–2022, both static panel and 2SLS/IV data analysis were used and found that random effect model is the best model. Findings: The results show that the Indonesian commercial banking sector can be considered as monopolistic competition. Moreover, using the Lerner index reveals that the entry of the Fintech lenders increases bank competition. Furthermore, there were different responses to the impact of Fintech lending on bank competition among state-owned banks, private banks, regional development banks and foreign banks. Greater efficiency and stability lead to greater market power. In the meantime, higher level of asset growth, capitalisation and cost-to-income ratio increase the competition. Lastly, higher bank credit growth and lower inflation boost overall bank competitiveness. Practical implications: This study highlights some policy recommendations for commercial banks to be aware of the coming of Fintech lenders because they have started to increase the market competition. The government should create a more collaborative ecosystem between banks and Fintech lending to anticipate unhealthy competition. Originality/value: This study will contribute to the literature by expanding the determinants of bank competition by considering the rise of Fintech lending in the market. [ABSTRACT FROM AUTHOR]

The Association of Southeast Asian Nations (ASEAN) aims to integrate the banking industry in the region. To achieve this, ASEAN members have agreed to create the ASEAN Banking Integration Framework (ABIF) to support such integration. Despite being endorsed in 2014, the framework remains vague and lacks clear policy coordination arrangements as well as standardisation instruments that enable ASEAN member states to integrate their banking sectors. This article examines why the member states agreed to such regulatory arrangements. Building upon the regulatory regionalism approach, we argue that the regulatory arrangement is underpinned by a socio-political struggle among dominant social forces in ASEAN. The article further argues that the political endeavour to internationalise domestic capital through the banking integration project remains problematic, given that local banking players seem to largely focus on protecting and penetrating domestic markets rather than regional expansion. This has hindered the progress of regional banking integration in ASEAN. To substantiate this argument, we use Indonesia's engagement in the process as a case study. This article contributes to the study of political economies of banking integration outside of the European experiment by emphasising the importance of state–society relations in shaping the outcome of regional integration. [ABSTRACT FROM AUTHOR]

Accepted by: Prof. Ali Emrouznejad Non-parametric data envelopment analysis (DEA) is susceptible to the curse of dimensionality, a challenge that can be mitigated through the use of the multi-criteria decision-making (MCDM) method. Conversely, DEA can overcome the limitations of the MCDM method by defining the weights of the decision-making unit to calculate the data envelop. This study addresses this issue by introducing a novel model, the Trigonometric Envelopment Analysis for Ideal Solutions (TEA-IS). TEA-IS combines DEA and the Technique for Order Performance by Similarity to Ideal Solution approaches. The proposed method is employed to assess the efficiency and performance of 367 Chinese banks over a 19-year period using various financial variables. The TEA-IS model leverages machine learning techniques to predict positive or negative outcomes for Chinese banks, taking into account various influencing factors. Our results indicate that TEA-IS scores demonstrate superior discriminatory power and reliability compared with non-parametric and MCDM methods. Furthermore, our findings reveal the presence of synergy amongst Chinese banks and illustrate a pattern of volatility in the Chinese banking industry's performance. Notably, performance improved from 2000 to 2005, declined during the period from 2006 to 2013 and subsequently experienced a recovery until 2018. The majority of Chinese banks in the sample are categorized as medium performers with lower synergy levels. Additionally, the study underscores the positive impact of bank listing and age on bank performance, suggesting that regional banks outperform domestic ones. [ABSTRACT FROM AUTHOR]

This study examines the current trajectory and future research directions of environmental, social, and governance (ESG) integration within the banking industry. Utilizing bibliometric and scientometric approaches, it highlights trend topics, influential studies, and notable contributors. Drawing from an analysis of 681 studies from Scopus and Web of Science databases, a comprehensive dataset was curated using scientometric networks with VOSviewer and Bibliometrix tools. This study emphasizes the evolving nature of ESG integration within banking, emphasizing an interdisciplinary shift encompassing environmental, social, and governance considerations. Keyword analysis reveals emerging trends, including the influence of ESG factors on banks' financial performance, regional variations in ESG integration within banking, and risk assessment related to ESG factors and credit risk in banks. By offering insights into the evolving topic of ESG integration within banking and identifying promising avenues for further exploration, such as the fundamental connection between ESG and sustainability, particularly in climate change and green finance, this research contributes to ongoing discussions surrounding ESG integration in the banking industry, guiding future research efforts in this vital financial sector. [ABSTRACT FROM AUTHOR]

The financial crisis of 2007 and 2008 was a wake-up call for the banking sector. Since then, many activities have been taken to improve the stability of the financial industry. Our paper aims to derive a risk-related tone from the top that enables top management to equalise their employees' risk behaviour and align the desired risk behaviour with the bank's risk appetite. Even though individual fragments of measures and requirements to implement a risk-related tone from the top have emerged over the years, a holistic picture is still waiting to be established. Especially the normative management is crucial for implementing a risk-related tone from the top as this channel supports top management in communicating the core values. To gain news insights into the tone from the top and the top managements' communication behaviour, we use a sequential explanatory mixed method approach. Our aim is to unite the positions of research and supervision. Therefore, we start with a comprehensive literature review to identify the relevant research streams. Building on this theoretical fundament, we evaluate practitioners' communication behaviour quantitatively via a questionnaire with a sample size of 197 German regional banks. Qualitatively, we analyse the communication behaviour via eight interviews with CEOs of German regional banks. For the supervisory perspective, we build on the FSB 'Guidance on Supervisory Interaction with Financial Institutions on Risk Culture'. This guidance not only emphasises the importance of the tone from the top, but also provides a first holistic picture of supervisory efforts on the topic. In summary, we consolidate the results from research, supervision and practice to derive a holistic picture for the implementation of a risk-related tone from the top. Finally, our holistic integration reveals future directions for research, supervision and practice. [ABSTRACT FROM AUTHOR]

This document is a compilation of academic articles and journals that explore the conversion of conventional banks to Islamic banks in Indonesia and other countries. The articles cover a range of topics including the reasons for conversion, the effects on assets and market share, challenges faced during the process, and the performance of Islamic banks compared to conventional banks. The articles provide valuable insights into the factors influencing conversion, customer preferences, and the legal aspects of the process. [Extracted from the article]

Multilateral development bank (MDB) engagement with 'gender' is controversial in review and uneven in practice. The authors analyse 1,928 gender-focused projects financed by the World Bank and regional development banks between 1967 and 2021. We propose three eras into which MDB gender engagement divides and argues that isomorphic pressures have aligned their approaches. The article concludes that gender is not an investment priority and projects have conceptually narrowed over time to focus on private entrepreneurship at the expense of addressing systemic gendered inequalities. This is significant for what the MDB finance signals to investors the feasibility of development projects. [ABSTRACT FROM AUTHOR]

With an emphasis on the effects of regional differences and the COVID- 19 epidemic, this study examines the link between Environmental Performance Index (EPI) ratings and the financial performance of European banks while considering the role of governance and law. Our study, which uses panel data regressions spanning five years and 71 listed banks in 21 European nations, shows a negative link between EPI scores and bank performance, which is most noticeable in Southern Europe. These results highlight the significance of taking regional variations in bank size and characteristics into account when assessing EPI performance in the banking industry. [ABSTRACT FROM AUTHOR]

Russia does not release information on the numbers of mobilized and recruited men or casualties of war in Ukraine. In this small note, I propose to use information from regional banking data as a proxy for analyzing the regional incidence of Russian mobilization. Some regions have seen rapid increases in household bank deposits not easily attributable to regional macroeconomic or institutional factors. Such regions coincide with the regions with proportionally large numbers of mobilized soldiers. It is plausible that the high salaries and hefty payments promised to contract soldiers, mobilized reservists and their families in the event of serious injury or death show up as spikes in regional bank deposits. [ABSTRACT FROM AUTHOR]

Using a sample of East Asian banks covering the period 1999–2014, this paper analyses the impact of natural disasters on commercial bank performance and how financial integration moderates this relationship. A dynamic GMM model reveals that natural disasters significantly lower deposit ratios but have no contemporaneous relationship with liquidity, credit risk, profitability and default risk. There is also evidence of a lagged effect of disasters, increasing deposits and lowering liquidity one year after the event. Furthermore, foreign banking claims, specifically those extended by regional Asian lenders, help to alleviate the deposits decline in the aftermath of natural disasters. These baseline findings are mainly driven by severely affected countries. Overall, the paper highlights the role of commercial bank deposits and foreign banking claims as sources of finance for post-disaster recovery. In particular, the resilience of Asian foreign claims in the event of natural disasters provides evidence to support intra-regional financial integration in East Asia. [ABSTRACT FROM AUTHOR]

The low-carbon city (LCC) pilot policy is significant in tackling carbon emission reduction and environmental protection. Several studies have demonstrated that LCC policy dramatically decreases air pollution in cities for environmental preservation, while there is a shortage of research on banking development. Using city-level data from 2005 to 2018 in China, we examine the impact of the LCC pilot policy on the growth of the banking sector by using a difference-in-difference (DID) model and analyze the underlying transmission mechanism. The empirical result demonstrates that the construction of LCC significantly impedes the growth of the regional banking sector, and the conclusions above hold up to a battery of tests. First, the LCC policy drastically reduces the scale of industries in the pilot cities, including secondary industry output, tertiary industry output, fixed asset investment, and fixed asset balance. Second, the LCC policy encourages industrial reorganization in the pilot cities, as demonstrated by a change in market demand from high carbon-emitting enterprises and non-state-owned enterprises to low carbon-emitting enterprises and state-owned enterprises, respectively. The results indicate that the LCC policy produces credit risk at enterprises and conveys it to banks, resulting in a retarding effect on banking development. [ABSTRACT FROM AUTHOR]

We study the effect of bank competition on the design of syndicate loans. We find that competition in the lead lender's market plays a significant role in determining the terms of the syndicate loans. Specifically, higher concentration leads to higher yield spreads, larger issues, shorter maturities, greater contract intensity, and more collateral requirements, but with a greater likelihood of performance pricing. We also find the prior banking relationships, anti‐takeover provisions and whether the lead bank is a national, regional, or state bank influence the designs of these loans. [ABSTRACT FROM AUTHOR]

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In Indonesia, the government encourages converting conventional regional development banks into sharia regional development banks. Such banks should become the driving force and the stimulator of a sharia ecosystem in the region, especially to support the development of regional economic potentials and to become a prosperous and peaceful country. This study aims to analyze the financial performance of regional development banks that have become sharia regional development banks to identify their ability to continue to provide economic growth in the region. Considering the results of previous studies, the authors conduct a comparative analysis of the financial performance of regional development banks that have converted to sharia banks using the following variables: return on assets (ROA), return on equity (ROE), loan-to-deposit ratio (LDR) / financing-to-deposit ratio (FDR), net interest margin (NIM) / net operating margin (NOM) and ratio of operating expenses to operating income (BOPO). The analysis aims to determine whether there is a significant difference in the financial performance between conventional and sharia regional development banks. The population in this study is the regional development bank, with a sample of 3 banks that have converted into sharia banks (Bank Aceh Shariah, Bank NTB Shariah, and Bank Riau Kepri Shariah). The study uses secondary bank data from quarterly financial reports on the banks' websites. The independent sample t-test is used to test the performance of conventional and sharia banks. The study results indicate no significant differences in the financial performance of regional development banks as measured using the financial ratio indicators ROA, ROE, and LDR. However, there are significant differences in measurements using the NIM and BOPO ratio indicators. Although the financial performance of sharia banks is still lower than that of conventional banks, they are showing an upward trend. [ABSTRACT FROM AUTHOR]

We take the mandatory establishment of the Inclusive Finance Division in large state‐owned banks as a quasi‐experiment to explore the impact of inclusive finance policy on operating performance and risk‐taking behaviours of small regional banks. Using financial information for Chinese banks from 2013 to 2019, we find that small regional banks' performance deteriorated, and they engaged in more risk‐taking activities after the policy shock. Moreover, there are even much sharper performance declines in subsets of city commercial banks, and banks face high competition from large state‐owned banks. [ABSTRACT FROM AUTHOR]

The article does an incisive analysis of 'Penalties' imposed by the Reserve Bank of India on the Indian commercial banks. Since 'Penalty' cannot be dissociated from 'Regulation' and 'Compliance,' the paper also studies the latter two. To the best of our knowledge, the 'Penalty' aspect has not hitherto received any serious attention in the literature. The paper covers the decade 2012-13 to 2021-22 and all the commercial banks (except Foreign Banks, Regional Rural Banks, Small Finance Banks and Payment Banks). The study does a disaggregate analysis by dividing the banks into three groups: Public Sector Banks, Old Private Banks and New Private Banks. The study not only computes the amount of penalty levied on these banks over the decade, but also analyses the reasons thereof under various sections of the relevant acts. The paper also briefly looks at the international position and concludes with a menu of policies in order to improve the trinity of 'Regulation', 'Compliance' and 'Penalty' in Indian commercial banking. [ABSTRACT FROM AUTHOR]

Developing countries are noted for higher interest margins, and banking in Africa has recently witnessed the rise of African regional banks with a Pan-African ambition and the quest to modify the banking landscape. So far, the banking literature has received little attention regarding the determinants of net interest margin (NIM) of commercial banks in Africa, and the empirics across domestic, regional African, and non-African banks has not been studied either. Thus, we fill this lacuna by analyzing the intermediation margins of commercial banks across Africa while detailing the determinants for the three banking groups. We employ annual data of 552 commercial banks for eight years (2011 to 2018) across fifty-two African countries. The results of the study indicate that bank intermediation margin in Africa is a function of pure spread variables (bank concentration, credit risk, risk aversion, interest rate volatility), income from non-traditional banking activities, specialization, other bank-specific (transaction size, operating cost) and macro-economic variables (financial innovation and GDP). The results also suggest that there are some similarities and nuances for the determinants of bank intermediation margins across the domestic, regional African, and non-African banks. The results obtained have significant policy implications for bank regulation and financial sector development. [ABSTRACT FROM AUTHOR]

Objective - A Bank is a financial institution that collects and distributes funds to the public to obtain Profitability. The Covid-19 pandemic has affected the economic sector, especially the banking sector. The intermediation function needs to run optimally, increasing investment in secondary reserves, decreasing operational efficiency, increasing credit risk, and reducing bank profitability. The research aimed to determine the effect of Banking Intermediation, Secondary Reserves, Operational Efficiency, and Credit Risk on Profitability at Regional Development Banks in Indonesia for the 2019 - 2022 period, partially and simultaneously. Banking Intermediation is measured by the ratio of credit to total third-party funds (Loan to Deposit Ratio/LDR), Secondary Reserve is measured by the percentage of securities held to third-party funds (TPF), Operational Efficiency is measured by the ratio of operating expenses to operating income (OEOI), Credit Risk is measured by Non-performing Loans (NPLs), and Profitability is measured by Return on Assets (ROA). Methodology - Descriptive and verification methods with a quantitative approach will be used in this study with secondary data from published financial reports from 22 Regional Development Banks in Indonesia. The data analysis technique used is multiple linear regression. Findings - The study's findings show that partially LDR has a positive and significant effect on ROA; Secondary reserve has a positive but not significant impact on ROA; OEOI and NPLs ratios have a negative and significant effect on ROA. While simultaneously, LDR, Secondary Reserve, OEOI Ratio, and NPLs substantially impact ROA. Novelty - Compared to previous studies, bank profitability is not only influenced by banking intermediation, operational efficiency, and credit risk but also by secondary reserves, although not significantly. [ABSTRACT FROM AUTHOR]

Using a quarterly sample of the 19 biggest US banks—i.e., four universal banks and fifteen regional banks—we find, with the help of a robust GMM method accounting for the endogeneity of bank diversification in fee-based income, that low interest rates induce banks—especially the Big 4—to shift their business model toward fee and commission sources of income. Concomitantly, the regulatory constraints imposed on banks after the subprime crisis—principally on liquidity, trading and fee business lines—are partly responsible for a structural decrease in bank performance. We also find that the vanishing of securitization fees has depressed the risk-adjusted ROA of regional banks, while the decrease in the contributions of charges on deposits and trading might have impaired the performance of universal banks. To mitigate the reduction in their ROA, big US banks seem to get more involved in riskier non-traditional activities. [ABSTRACT FROM AUTHOR]

Purpose: Cities remain an understudied unit of analysis for understanding the motives of multinational enterprises' (MNE) foreign direct investment (FDI), with subnational locations in International Business (IB) research to date predominantly captured via the phenomenon of agglomeration. As regional integration projects, such as the European Union and to a lesser degree NAFTA, increasingly reduce the importance of national institutional environments, this paper argues regional and subnational levels become more important for studying MNE location choice. This paper aims to evaluate the explanatory contribution of regional and subnational levels of analysis to understanding MNE location choice. Design/methodology/approach: A qualitative deductive bottom-up multiple-case study research design is adopted to study the city location choices and FDI motives of six automotive and six commercial banking companies. These purposefully sampled manufacturing and service MNEs have different home countries and regional orientations. Data on their foreign investments across the extended Triad of Europe, North America and Asia-Pacific were collected for the time period of 2000–2021. Findings: Findings suggest that different classes of city tend to attract specific types of FDI and that these patterns might vary across sectors and be influenced by the regional strategic orientations of MNEs. Industry-specific findings reveal the importance of related and support industries and partners in a city location for the automotive MNEs, while the commercial banks seek investment opportunities in cities that allow acquisition targets that have an attractive customer based and will improve their local market knowledge. Originality/value: The findings provide evidence in support of MNEs in manufacturing and service industries perceiving the attractiveness of three city types in different ways across the Triad regions. [ABSTRACT FROM AUTHOR]

I argue that coverage caps on Federal Deposit Insurance (FDI), a vestige of the 1933–2005 era when premia were neither risk-priced nor regularly assessed, have become not only anachronistic—a bank law equivalent of the human tailbone—but dangerous. The failure of Silicon Valley Bank in early March of 2023, followed by more regional bank failures thereafter, shows why. I then show how readily uncapped, progressively tiered, risk-priced FDI can be extended to all banks in a manner lending far greater resilience, at no risk of "bailouts," to the banking sector. But far more, I argue, will come of this. By eliminating the advantage now held by "Big 4," generic TBTF Wall Street Banks, the reform will effectively undo a great deal of the 1990s, with all its attendant bank concentration, financialization, and deindustrialization. A revival of regional and sector-specific banking of this kind seems especially fitting as we embark on a grand national project of "Making America Make Again." An Appendix includes draft legislation now before both Houses of the U.S. Congress. [ABSTRACT FROM AUTHOR]

This paper uses a simulation model to evaluate the effects of river flooding events occurring within Germany on regional banks. Under a 1.5 °C increase in temperature, the impact is overall rather small, even accounting for the devaluation of loans exposed to floods. Specifically, climate related risks would increase bank losses by 0.1% with large variability across NUTS2 regions. However, under a 3 °C increase, bank losses increases up to 1% of total assets. We show that the implementation of adaptation solutions would be successful in keeping risks at the current level. By supporting adaptation initiatives, such as investing in climate-resilient infrastructure or providing financial services to support sustainable practices, banks can play a crucial role in building the resilience of the financial sector and reducing the overall impact on the economy. • The paper evaluates the effect of flood events on regional banks in Germany. • Floods increase overall bank losses by 0.1% under the current temperature level. • Losses could increase up to 0.9% with a 3 °C temperature increase. • Banks operating in dangerous regions should take measures to safeguard themselves. • Adaptation strategies can reduce the impacts on banks. [ABSTRACT FROM AUTHOR]

Using a sample of bank loans to firms operating in the Greek tourism sector, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of bank consolidation on the firms' payment behavior. We show that a merger-induced impairment of the lending relationship is related to a higher likelihood of strategic default by the target bank's borrowers. In contrast, mergers with a limited impact on the lending relationship have no effect on the probability of strategic default of target bank's borrowers. The results highlight the importance of relationship lending benefits in mitigating strategic default risk. Our findings are robust to the alternative interpretation of soft budget constraints. [ABSTRACT FROM AUTHOR]

India has since long recognized the social and economic imperatives for greater financial inclusion, and it has made a significant contribution to economic development by developing novel methods to empower the lower-income group. The Govt. & banking industry have taken the lead in promoting financial inclusion. The Reserve Bank of India (RBI) has taken numerous steps over the years to increase access to the poorer segments of society, beginning with bank nationalization, priority sector lending requirements for banks, the lead bank scheme, the establishment of Regional Rural Banks (RRBs), the service area approach, the self-help groupbank linkage programme, and so on. RBI also launched NCFE (National Centre for Financial Education) which is not for profit organization aims to promote financial education across India through trainings programs, workshops, seminars for all sections of the population. As per National Strategy for Financial Inclusion (NSFI, 2019- 2024) report minute data is required to depict a proper image of how financial services are used and covered. Some countries have begun to implement legislative measures. This research aims to better understand the concept of financial inclusion in the Indian banking sector. Furthermore, this paper discusses various initiatives undertaken by the Reserve Bank of India and also tries to analyse progress of schemes as well as the future prospects of financial inclusion in Indian banking. [ABSTRACT FROM AUTHOR]

The aims of the paper are to explore the recent liquidity stress situations encountered by the regional banks in the United States of America (with a particular focus on Silvergate Bank and Silicon Valley Bank, both headquartered in California) and to provide a descriptive viewpoint on the regulatory framework, prudentiality and financial management issues, including accounting aspects and corporate governance. The research methodology pertains to the cause-effect analysis and the dynamics of changes over time and to the synthesis of documented authentic public resources of information, giving substance to the main findings. The paper explores the causes and the consequences of the failing banks from the perspective of implications to the current regulatory environment and prudential requirements, with a view to the financial markets functioning. It analyses the business models and the rootcauses that led to the recent distress in the first quarter of the year 2023 in the US banking system. The conclusions draw evidence on how clustered liquidity stress and fast-unfolding bank runs became risk factors, in a context where regulatory environment allowed for a more relaxed supervisory stance on banks and the rising interest rates in an inflationary economy affected the market value of financial instruments as means of liquidity in banks' portfolios. Still, despite some particular situations pertaining to some US banks, the US banking sector remains resilient, with significant risk-absorbing capacities. [ABSTRACT FROM AUTHOR]

The impact of green credit on banks has been widely verified. This paper systematically combs the internal mechanism of the impact of green credit on high-quality sustainable development of banks and studies the relationship between green credit and high-quality sustainable development of banks by using unbalanced panel data of Chinese listed banks from 2007 to 2019. The results show that green credit will significantly promote high-quality sustainable development of banks, which remains valid after controlling for relevant variables and robustness test. The further test results show that the impact of green credit on high-quality sustainable development of banks will be affected by green environment supervision and monetary policy. Green environment supervision and loose monetary policy promote the positive impact of green credit on high-quality sustainable development of banks. The heterogeneity test results show that the impact of green credit on high-quality sustainable development of banks is significantly different among banks with different business scope and different size, and the positive impact of green credit on high-quality sustainable development of small-scale banks and regional banks is more significant. This paper enriches the research of the impact of green credit on banks. [ABSTRACT FROM AUTHOR]

There has been a remarkable increase of the regional banking operations across the African continent over the past two decades. This resulted from macroeconomic improvements and economic growth. As a result, African banks increased their geographical operations to emerge as regional groups holding a considerable market share compared to their historically predominant competitors. However, the literature on the pan-African banking industry to understand better this phenomenon is still scarce, which limits having a bigger and inclusive picture of all the key elements influencing this noteworthy growth. This research paper articulates a review based on previous academic research works, and highlights the most important opportunities that regional banks seized, as well as the challenges they faced in order to lead their cross-border banking operations successfully across the region. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to measure the level of total factor productivity of the Indian banking sector and to identify both the bank-specific and macroeconomic determinants of the total factor productivity after the global subprime mortgage crisis. Design/methodology/approach: The research sample consists of 61 commercial banks including 21 public sector banks, 18 private sector banks and 22 foreign banks. The annual data is collected from the website of Reserve Bank of India from 2008 to 2019. The authors employed the non-parametric DEA approach to estimate Malmquist total factor productivity index for each bank as well as across different ownership groups. The panel data estimation technique was used to identify the determinants of total factor productivity. Findings: The results suggested that an increase in the technological shift raised the bank's productivity above the optimal frontier. Among the bank-specific determinants, the bank size and bank diversifications are significantly declining productivity, whereas credit-deposit ratio and return on asset significantly increasing productivity. Among the macro-specific determinants, inflation, growth rate and fiscal deficit ratio negatively affect productivity, whereas capital formation to the GVA ratio boosts the level of productivity. Research limitations/implications: The authors have used intermediate method to select the inputs and outputs as per the suitability to the context. However, the disaggregate level such as state and district level analysis can be done using production and value-added approaches to explore the regional variations of the banking performance. Furthermore, the parametric methods such as stochastic frontier analysis can be used to examine banking performance, which the authors left for the future research. Practical implications: This study suggested that banks should increase the economies of scale of their total assets and focus on the interest-earning activity. The banks need to proactively operate the business policy by following the changing path of inflation. The banks need to reduce their rate of fiscal-deficit to the GVA with the purpose to boost their level of productivity. Originality/value: The study provides an important implication for bankers and policymakers in terms of heightening the banking performance during the period of dynamic economic events. [ABSTRACT FROM AUTHOR]

The dominance of the banking sector shows that the banking industry plays an important role in driving the economy in Indonesia. As part of the national banking industry, Regional Development Banks (RDB) are required to contribute to the economy through optimal performance. One of the important indicators in measuring company performance, including in the banking industry, is the level of efficiency. Efficiency in the banking industry can be observed from a micro and macro perspective, which leads to the ability of banks to survive in conditions of increasingly fierce competition in technology-based products and services, as well as the ability of banks to allocate financial resources to increase investment activities that can stimulate the economy. Therefore, this study examined the level of cost and profit efficiency of the RDB industry in Indonesia for the 2011–2020 period, as well as the internal and external variables that affect RDB inefficiency using Stochastic Frontier Analysis (SFA). The results show that there are no RDB's efficient in cost and profit. Furthermore, the variables capital adequacy ratio and technology investment impact on increasing cost and profit efficiency, opposite with non-performing loan. Therefore, to optimize the xRDB's cost and profit efficiency, the main thing that must be done includes managing and improving good quality loans as well as optimizing idle funds. [ABSTRACT FROM AUTHOR]

With the development of digital technology, the way that banks serve small-and medium-sized enterprises (SMEs) has undergone a disruptive change. Besides labor-intensive ways, banks can now serve SMEs through technologyintensive ways such as big data and artificial intelligence (AI). This has given rise to internet banks and made traditional banks face the choice of digitalization, thus igniting the technological competition in the banking sector. This paper builds a competition model among three types of banks, including small and medium internet banks with unique data advantages, large banks with economies of scale, and regional small and medium banks with comparative advantages in acquiring internal information. Then, the paper studies the digitalization strategies of different types of banks and their influence on the financing options of SMEs. The model shows that there may be a digital matching relationship between banks and SMEs in the era of AI. Large banks and small and medium internet banks have the advantage in the research and development and application of digital loan technology and serve SMEs with a more digital footprint. Regional small and medium banks have an advantage in traditional loan means and serve SMEs with a less digital footprint. This paper suggests that banks choose the transformation direction and development orientation according to their own conditions, such as bank scale, data accumulation, and internal information screening capability because this affects not only the development of banks and but also the extent to which AI can improve the financing environment for SMEs. These conclusions not only provide a theoretical basis for the decision-making mechanism of bank digitalization strategy and the applicability of AI to different types of banks but also have important policy implications for the government to better promote the digital transformation of banks and alleviate the financing constraints for SMEs. [ABSTRACT FROM AUTHOR]