Search results
1 – 10 of over 11000Salah U-Din, Mian Sajid Nazir and Aamer Shahzad
In the last few decades, the frequency and intensity of extreme weather events have increased in most parts of the world including Canada because of global warming. The global…
Abstract
Purpose
In the last few decades, the frequency and intensity of extreme weather events have increased in most parts of the world including Canada because of global warming. The global warming in Canada is about double the magnitude of global warming; therefore, policymakers are concerned about the potential significant impact of the weather catastrophes on the economy and financial sector. The purpose of this study is to explore the impact of weather catastrophes on the Canadian banking sector.
Design/methodology/approach
Using a sample of banking firms from Canada over the period 1988–2019, the present study estimates different econometric techniques to investigate the impact of weather catastrophes on the risk and performance of Canadian banks.
Findings
Analyses of the study do not find a significant impact of the weather catastrophes on the performance of the Canadian banks; however, it has helped banks to lower their risk level and improve stability due to proactive risk management. The findings of this study are not consistent with concerns of the policymakers about climate risk to the Canadian bank sector. More sector-specific research and policy initiatives are recommended to minimize the future financial risk of the increased frequency and intensity of natural disasters.
Originality/value
The study contributes to support the notion that the climate risk of banks is protected with insurance and reconstruction activities provide more banking opportunities.
Details
Keywords
Legitimacy is defined as the ability to exercise authority without resorting to open coercion. It is an essential asset for firms seeking to reach and maintain profitability. In…
Abstract
Purpose
Legitimacy is defined as the ability to exercise authority without resorting to open coercion. It is an essential asset for firms seeking to reach and maintain profitability. In this context, the purpose of this paper is to present the case of the Canadian banking industry, which has been highly criticized during the last decade for its record profits, low level of risk taking, high fees and buoyant CEO compensation packages. More specifically, this research aims to analyze the general public's perceptions of the industry during a 50‐month period, starting with the first strong reaction to recurrent announcements of record profits. It also seeks to look at industry reactions as a response to bank bashing.
Design/methodology/approach
The case study in this paper was conducted in two steps. It first analyzed public perceptions by studying the content of a sample of newspaper articles on the Canadian banking industry from 1996‐2000. It then examined the industry's reactions by reviewing the documents found on the web site of the Canadian Bankers Association.
Findings
The study shows that the crisis faced by the banking industry was of limited but sustained intensity. The industry used a mixed strategy, justifying itself through its public discourse and mounting a program to inform and educate the Canadian public on the effects of economic factors in their lives. The banking industry limited its reactions to Sethi's first‐level strategy found in the literature.
Originality/value
The paper highlights how the general public perceive profit levels in the Canadian banking industry and how legitimacy is clearly an issue in this context.
Details
Keywords
The study aims to analyze the changes in banking market structure and their impact on the bank efficiency.
Abstract
Purpose
The study aims to analyze the changes in banking market structure and their impact on the bank efficiency.
Design/methodology/approach
This study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.
Findings
A significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.
Research limitations/implications
Only large banks are selected for study although it represents the majority stake of both banking sectors.
Practical implications
Banking regulators should include more measures to assess the banking market structure and performance.
Originality/value
As per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.
Details
Keywords
States that the financial services industry application of mainstream strategy literature gives ample consideration to an organization’s task and technical environment. Points…
Abstract
States that the financial services industry application of mainstream strategy literature gives ample consideration to an organization’s task and technical environment. Points out, however, that this level of analysis does not deal explicitly with the larger “institutional” context, within which an organization is embedded. Using the Canadian banking industry as an exemplar of a highly institutionalized financial services industry, demonstrates the utility of institutional theory in understanding the origins, nature and dynamics of powerful institutional pressures of conformity. Calls this conformist strategy “mismanagement”.
Details
Keywords
Claudio Pousa and Anne Mathieu
The purpose of this paper is to investigate to what extent bank manager's coaching, a managerial relationship behavior based on mutual trust, openness and quality of exchanges…
Abstract
Purpose
The purpose of this paper is to investigate to what extent bank manager's coaching, a managerial relationship behavior based on mutual trust, openness and quality of exchanges, affects front-line employee's performance through the mediating effect of salesperson's customer orientation.
Design/methodology/approach
The paper conducted a non-experimental, cross-sectional study; a Canadian bank agreed to participate in the study and 122 financial advisors with sales responsibilities answered a web-based survey; data were analyzed using structural equation modelling.
Findings
The paper found support for the hypotheses that managerial coaching behavior can help bank employees develop their customer orientation and increase their performance, as well as reduce opportunistic behavior (sales orientation). The paper found that the direct link between coaching and performance, plus the mediating effect of sales orientation and customer orientation (SOCO) can potentially explain a significant variation in employee's performance (r2=0.23). The paper also found that the hypothesized model provided better explanations of the phenomenon when compared with two rival models, one considering SOCO as a full mediator between coaching and performance, and the other one considering only the effect of coaching on performance.
Originality/value
In the banking sector, practitioners and scholars are paying increased attention to the role of trust and relationship behaviors in the development of market orientation and customer relationships. The paper identified a key relationship behavior (customer orientation) and tests its impact as a mediator between a relationship managerial behavior (coaching) and business outcomes (performance) in an international banking setting (Canada).
Details
Keywords
James Ntiamoah Doku, Joshua Abor, Charles K.D. Adjasi and Charles Andoh
Purpose – This paper investigates competitive bank behaviour in Africa for the period 1999–2008 and further examines the impact of institutional quality and political atmosphere…
Abstract
Purpose – This paper investigates competitive bank behaviour in Africa for the period 1999–2008 and further examines the impact of institutional quality and political atmosphere on competitive bank behaviour.
Design/methodology/approach – This study used panel data methodology based on the Panzar–Rosse (1987) design.
Findings – The findings of the study indicates that the nature of banking system in Africa can best be described as monopolistically competitive. Also, our findings endorse the importance of institutional quality and political stability in fostering competitive banking sector. In particular, the rule of law shows positive and significant relationship with competitive bank behaviour. Additionally, the quality of regulations suggests positive association with bank competitive behaviour. With respect to political environment, stable political atmosphere is conducive for promoting competitive banking sector. Improved regulatory quality coupled with reduced level of perception about corruption fosters competitive bank behaviour.
Originality/value – This paper provides useful information relevant to policy makers in the banking sector about the nature of bank competitive behaviour in Africa and the drivers behind the competitive behaviour.
Details
Keywords
The purpose of this paper is to document Canadian financial services regulatory reform, illustrating how existing institutional fragmentation has undermined capacity to…
Abstract
Purpose
The purpose of this paper is to document Canadian financial services regulatory reform, illustrating how existing institutional fragmentation has undermined capacity to effectively learn from the global financial crisis.
Design/methodology/approach
The paper draws on government documents, public comments and interviews with key individuals in the reform process to document the different institutional responses to the crisis.
Findings
The case highlights concerns raised in the policy subsystems literature that the capacity for “learning”, even from events as significant as the financial crisis, can be undermined by poor institutional arrangements which create incentives for policymakers to support self interested and limited analysis.
Practical implications
The case suggests that effective learning in a complex sector requires that there be a national regulator charged with broad independent analytical responsibilities to ensure that the industry is effectively regulated. Existing fragmentation of responsibilities, combined with the interests of the industry and the current government in deflecting new regulatory rules, has meant that existing government expertise has not been effectively deployed.
Originality/value
The paper offers an important corrective to the existing view of Canadian financial regulation and is a compelling illustration of how poor institutional arrangements and ambiguous jurisdictional responsibilities can impede effective policy capacity in relation to learning.
Details
Keywords
Canadian banks were resilient during the global financial crisis. However, slow economic growth in their home market, exacerbated by low oil prices, has encouraged them to expand…
Details
DOI: 10.1108/OXAN-DB198661
ISSN: 2633-304X
Keywords
Geographic
Topical
The purpose of this paper is to investigate bank customers' attitudes toward various bank services.
Abstract
Purpose
The purpose of this paper is to investigate bank customers' attitudes toward various bank services.
Design/methodology/approach
The design includes a survey, which looked into determinants of customer satisfaction in the retail‐banking sector in the Middle East, with particular attention to the State of Kuwait. A total of 605 usable questionnaires were randomly distributed to retail customers at various banks within the country.
Findings
Using descriptive statistics methods and ANOVA test, the findings of this paper suggest that in general customers in Kuwait (Kuwaiti and non‐Kuwaiti customers) are satisfied with services provided by the retail‐banking sector.
Research limitations/implications
The research does not include samples of customers represented among all the bank branches in Kuwait due to cost and time limitations.
Practical implications
The paper has implications for management in the banking sector in the State of Kuwait.
Originality/value
The paper presents original research for determining customer satisfaction of bank services in Kuwait. The results can be of much value to bank managers using these data to retain customer satisfaction and maintain their competitive advantage.
Details
Keywords
Sayantan Kundu and Aditya Banerjee
This paper introduces the concept of policy efficiency of banks as their efficiency in implementing the government's policies. It further compares the Indian public sector banks…
Abstract
Purpose
This paper introduces the concept of policy efficiency of banks as their efficiency in implementing the government's policies. It further compares the Indian public sector banks (PSBs) and private sector banks (PVBs) on two efficiency paradigms, operational efficiency and policy efficiency.
Design/methodology/approach
A three-stage analysis is carried out on data collected for 19 PSBs and 16 PVBs for ten years. Non-radial DEA with slack-based measure (SBM) is used to obtain efficiency scores of the banks for the two efficiency paradigms. The efficiency scores and the changes in efficiency and Malmquist index are further analysed by Tobit regression and seemingly unrelated regression (SUR) models.
Findings
PVBs are found to be more operationally efficient than PSBs. On the contrary, PSBs are found to be more policy efficient. Among the PSBs, the older and larger banks performed better in both the paradigms. Though Indian banks have become more operational and policy efficient over the years, the rate of improvement is slowing down.
Practical implications
Results imply that evaluating banks, especially PSBs, only on their operational efficiency is myopic. Their efficacies must also be measured by the roles they play on social and policy front. The loss of efficiency of Indian PSBs in a competitive environment should provoke thoughts of reforms. The study suggests that the proposed merger of PSBs to form large banks might be fruitful.
Originality/value
The study contributes to the literature by introducing the measure of policy efficiency. It shows that the Indian PSBs are indispensable as vehicles of government policy implementation.
Details