Search results

1 – 10 of over 11000
To view the access options for this content please click here
Book part
Publication date: 15 December 2015

Giovanni Ferri, Panu Kalmi and Eeva Kerola

This paper studies the impact of ownership structure on performance in European banking both prior and during the recent crisis. We use a panel of European banks during…

Abstract

This paper studies the impact of ownership structure on performance in European banking both prior and during the recent crisis. We use a panel of European banks during the period 1996–2011 and utilize random effects estimations in order to identify differences in bank performance (profitability, loan quality, and cost efficiency) due to differences in ownership structure. Both stakeholder and shareholder banks have distinct advantages, shareholder banks showing better profitability before the crisis but stakeholder banks having higher loan quality before and during the crisis. Differences in profitability and loan quality between stakeholder and shareholder banks before the crisis are especially pronounced in countries that experienced a banking crisis after 2007. There is strong a heterogeneity in performance between different stakeholder ownership groups. With the exception of private savings banks, profitability and loan quality of stakeholder banks has improved relative to that of general shareholder banks during the crisis years. The paper contributes to the previous literature by comparing pre-crisis and crisis performance and includes more refined ownership classifications. The results indicate that the survival of the stakeholder model is due to its competitive advantages. Our findings provide support for those arguing that the diversity of organizational structures is worth preserving. Ownership pluralism should become a policy objective in the banking industry.

Details

Advances in the Economic Analysis of Participatory & Labor-Managed Firms
Type: Book
ISBN: 978-1-78560-379-2

Keywords

To view the access options for this content please click here
Book part
Publication date: 21 November 2014

Saeed Al-Muharrami and Daniel C. Hardy

Islamic and cooperative banks – including credit unions – are broadly similar in that they both share risk with savers. However, risk sharing goes along with ownership…

Abstract

Islamic and cooperative banks – including credit unions – are broadly similar in that they both share risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers also, and full downside risk with depositors. Islamic banking is consistent with mutual ownership, which may ease some of the governance and efficiency concerns implied by Shari’ah constraints. Greater risk sharing among cooperative bank stakeholders, along the lines of products offered by Islamic banks, may strengthen cooperatives’ financial resilience.

Details

International Perspectives on Participation
Type: Book
ISBN: 978-1-78441-169-5

Keywords

To view the access options for this content please click here
Article
Publication date: 14 May 2019

Mine Aysen Doyran and Zachary Roman Santamaria

The purpose of this paper is to analyze the performance of banking institutions in Costa Rica over the period 2004–2014.

Abstract

Purpose

The purpose of this paper is to analyze the performance of banking institutions in Costa Rica over the period 2004–2014.

Design/methodology/approach

This paper employs system GMM, dynamic panel data and traditional financial hypothesis framework to analyze bank performance and assess marketplace sustainability for a sample of commercial and cooperative banks from Costa Rica. In the assessment, the authors visit the relative market power, structure conduct performance (SCP) and efficient structure literature.

Findings

Market share (MS) is positively related to performance whereas the authors find a negative effect of market concentration (Herfindahl–Hirschman index) on bank profits, thereby refuting the SCP hypothesis. The authors accept the “quiet life” hypothesis within Costa Rican banks since a moderate level of profit persistence is detected. Commercial banks are less profitable. Yet when crisis is introduced to the models, it has a significant and negative impact on overall bank performance.

Research limitations/implications

The authors selected years and banks based on available data plus default information in the relevant database. More insights can be gained from post-2014 developments.

Practical implications

The current results and conclusions have implications for developing economies (and economic development, in general) by showing that the traditional understanding of cooperative bank model as better for the public good may not be necessarily true. They offer insight into the understanding of how different bank-type institutions affect the public good. Furthermore, expanding the research to Latin America in order to directly compare commercial and cooperative enterprises via a meta-frontier technique would help buttress this evidence.

Originality/value

This is the most recent study to provide such an investigation for a Latin American country with a sizable MS for cooperative and public sector banks. The paper offers analysis that has been limited in Latin American banking markets thus far.

To view the access options for this content please click here
Article
Publication date: 31 October 2018

Tarsem Lal

The purpose of this paper is to measure the impact of financial inclusion on rural development through cooperatives.

Abstract

Purpose

The purpose of this paper is to measure the impact of financial inclusion on rural development through cooperatives.

Design/methodology/approach

The primary data were collected from 540 beneficiaries of Cooperatives banks operating in three northern states of India, i.e., J&K, Himachal Pradesh and Punjab using purposive sampling during January to June 2016. Exploratory factor analysis, confirmatory factor analysis, ANOVA, t-test and structural equation modelling were used for scale purification and data analysis.

Findings

The findings of the study revealed that financial inclusion through cooperatives has direct and significant impact on rural development. Further, the results support the notion that financial inclusion is a strategy of inclusive growth, but inclusive growth itself is a subset of a larger set of inclusive development which means that the benefit must reach the all, particularly the women and the children, minority groups, the extremely poor and those pushed below the poverty line by natural and human-made disasters.

Research limitations/implications

The research has certain inescapable limitations. First, the in-depth analysis of the study is restricted to three northern states of India only because of time and resource constraints. Second, the study is confined to the perception of financial inclusion beneficiaries only, which in future could be carried further on the perception of other stakeholders such as SHGs, banking correspondents, etc. Third, possibility of subjective interpretation in some cases cannot be ruled out.

Originality/value

The study makes contribution towards financial inclusion literature relating to sustainable rural development and fulfils the research gap to some extent by assessing the impact of financial inclusion on rural development through cooperatives.

Details

International Journal of Social Economics, vol. 46 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

To view the access options for this content please click here
Article
Publication date: 11 June 2019

Antonio D’Amato and Angela Gallo

This paper aims to analyze the relationship between bank institutional setting and risk-taking by exploring whether board education and turnover are drivers of the risk…

Abstract

Purpose

This paper aims to analyze the relationship between bank institutional setting and risk-taking by exploring whether board education and turnover are drivers of the risk propensity of cooperative banks compared to joint-stock banks.

Design/methodology/approach

Based on a comprehensive data set of Italian banks over the 2011-2017 period, this paper examines whether these board characteristics affect the risk propensity of cooperative and joint-stock banks. Bank risk is measured by the Z-index, profit volatility and the ratio of non-performing loans to total gross loans.

Findings

The findings show that cooperatives take less risk than joint-stock banks and have lower board turnover and education. Furthermore, this study finds that while board education mediates the relationship between the cooperative model and bank risk-taking, there is no evidence for board turnover. Thus, the lower educational level of cooperative directors contributes to explaining the lower risk-taking of cooperative banks.

Implications

The findings have several implications. In terms of the more general policy debate, the results point to the need to strengthen the governance model for both joint-stock and cooperative banks while supporting the view that a more ad hoc perspective on the best models and practices for each type of institutional setting would be preferable. In particular, the study reveals how board education’s effects on bank risk-taking should be carefully monitored.

Originality/value

Through a mediation framework, this study provides empirical evidence on the relationship between bank institutional setting (by distinguishing between cooperative and joint-stock banks) and risk-taking behavior by exploring the underlying mechanisms at the board level, which is novel in the literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

To view the access options for this content please click here
Article
Publication date: 14 May 2018

Tarsem Lal

The purpose of this paper is to examine the impact of financial inclusion on poverty alleviation through cooperative banks.

Abstract

Purpose

The purpose of this paper is to examine the impact of financial inclusion on poverty alleviation through cooperative banks.

Design/methodology/approach

In order to fulfil the objectives of the study, primary data were collected from 540 beneficiaries of cooperative banks operating in three northern states of India, i.e., J&K, Himachal Pradesh (HP) and Punjab using purposive sampling during July-December 2015. The technique of factor analysis had been used for summarisation of the total data into minimum factors. For checking the validity and reliability of the data, the second-order CFA was performed. Statistical techniques like one-way ANOVA, t-test and SEM were used for data analysis.

Findings

The study results reveal that financial inclusion through cooperative banks has a direct and significant impact on poverty alleviation. The study highlights that access to basic financial services such as savings, loans, insurance, credit, etc., through financial inclusion has generated a positive impact on the lives of the poor and help them to come out of the clutches of poverty.

Research limitations/implications

The study was conducted amidst few limitations. First, the in-depth analysis of the study is restricted to three northern states only because of limited resources and time availability. Second, the study is limited to the perception of financial inclusion beneficiaries only, which, in future, could be carried further on the perception of other stakeholders such as bank officials, business correspondents, village panchayats, etc.

Originality/value

The study makes contribution towards the financial inclusion literature relating to poverty alleviation and fulfils the research gap to some extent by assessing the impact of financial inclusion on poverty alleviation through cooperative banks. This paper can help the policymakers and other stakeholders of cooperative banks in promoting banking habits among poor rural households both at the national and international level.

Details

International Journal of Social Economics, vol. 45 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

To view the access options for this content please click here
Article
Publication date: 13 July 2012

Nikos Ioanni Schiniotakis

This paper aims to search for the factors that influence the profitability of Greek commercial and cooperative banks by examining other variables that have never been used…

Abstract

Purpose

This paper aims to search for the factors that influence the profitability of Greek commercial and cooperative banks by examining other variables that have never been used before. It also seeks to examine bank performance before and during the economic crisis in Greece. The survey is based on previous similar research.

Design/methodology/approach

A multiple regression analysis has been used for the determination of the factors which influence the profitability of the Greek banking sector as well as the multicriteria method PROMETHEE for the examination of the Greek banking sector performance before (2007) and during the economic recession (2008‐2009).

Findings

The paper finds that: type of bank plays an important role in profitability; the indicator ROA is associated only with well‐capitalized banks with sufficient liquidity and cost efficiency; and cooperative banks in general at the beginning of the crisis were less influenced by the economic crisis than commercial banks.

Originality/value

This is the first time that the entire Greek banking system has been examined for the particular period regarding the factors that influence bank profitability. Up to now there has been no published research examining whether the type of the bank influences profitability or which of banks remained efficient and “durable” before and during the first two years of the economic crisis in Greece.

Details

EuroMed Journal of Business, vol. 7 no. 2
Type: Research Article
ISSN: 1450-2194

Keywords

To view the access options for this content please click here
Article
Publication date: 16 March 2010

Fotios Pasiouras and Emmanouil Sifodaskalakis

The purpose of this paper is to investigate the total factor productivity (TFP) change in the Greek cooperative banking industry over the period 2000‐2005.

Abstract

Purpose

The purpose of this paper is to investigate the total factor productivity (TFP) change in the Greek cooperative banking industry over the period 2000‐2005.

Design/methodology/approach

The paper employs the Malmquist index and estimate two models, one based on the intermediation approach, and one based on the production approach. TFP change is disaggregated into technical efficiency change and technological change, whereas technical efficiency change is decomposed further into pure technical efficiency change and scale efficiency change.

Findings

The results are mixed. The first model indicates a small decrease (3 per cent) in TFP whereas the second model indicates an increase by 6.6 per cent. Comparing the results on the basis of banks' size finds that TFP growth is higher for smaller banks on average over the entire period of our analysis. However, this relationship between size and productivity is not robust across the years. Furthermore, the differences between the groups are not statistically significant.

Practical implications

The results can be of special interest to several stakeholders such as customers‐members, bank managers, local community, and of course bank regulators.

Originality/value

This paper is believed to be the first that examines the productivity growth of Greek cooperative banks.

Details

Managerial Finance, vol. 36 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Book part
Publication date: 19 November 2012

Daniel Bachet

Purpose – The purpose of this chapter is to show that cooperative banks’ values and finalities are not identical to capitalist banks, which are solely geared toward the…

Abstract

Purpose – The purpose of this chapter is to show that cooperative banks’ values and finalities are not identical to capitalist banks, which are solely geared toward the maximization of short-term financial returns.

The idea that has been widely trumpeted since the beginning of the cooperative movement is profoundly “democratic” due to the fact that it is based on the idea of one person=one vote and because the concept of “collective property” remains topical to this day.

This raises questions as to the best way of conceptualizing the fact that some executives of banking institutions operating in the social economy have in recent years prioritized the development of growth strategies whose only goal is to constantly increase their power and adopt the same ultimate goals as capitalist banks do.

Results – This chapter highlights the reasons for cooperative banks’ deviations and suggests a return to the original mindset of the social and solidarity ideal. It specifies what the terms “market” and “competition” refer to and also suggests a reshaping of two categories derived from neoclassical thinking: “free and self-determined individuals” and “enterprise.” Lastly, it identifies the institutional conditions underlying the generalization of cooperative finance so this is no longer viewed as something marginal or isolated.

Details

Recent Developments in Alternative Finance: Empirical Assessments and Economic Implications
Type: Book
ISBN: 978-1-78190-399-5

Keywords

To view the access options for this content please click here
Article
Publication date: 13 June 2018

Frank Jan De Graaf

The purpose of this paper is to examine the history of the Dutch cooperative Rabobank to understand how the structure of an organisation determines how individual…

Abstract

Purpose

The purpose of this paper is to examine the history of the Dutch cooperative Rabobank to understand how the structure of an organisation determines how individual employees validate norms within that organisation.

Design/methodology/approach

Data over an approximately 10-year period starting 25 years ago are analysed, and the value of relating a historical analysis and narrative approach to ethical and institutional theories in economics and management science is demonstrated.

Findings

Regulation in the banking sector appears to have a strong normative aspect. The choice between state and private ownership is based on ideology. The author argues that the private ownership model was based primarily on an ideology surrounding economic efficiency, but that in fact there are other logics that also promote economic development. This contributes to the understanding of the interaction between sector standards, organisational structures and the values of organisations and individual employees. The structure of an organisation enables key employees to deviate slightly from the organisation’s prevailing norms in response to pressures from the wider environment, and those individuals thereby become symbols of that organisation.

Originality/value

The perspective on management history put forward in this paper enables assessing the distinction between normative notions in institutional environments and the organisation as a whole as represented in its governance structure and narratives that key employees disseminate about the organisation. This in turn helps us to understand the interaction between sector standards, organisational characteristics and values represented by individual employees. The author reveals the strong normative impact of banking regulation in line with an older ideological model focused on economic efficiency rather than market logics and the interests of society.

Details

Journal of Management History, vol. 24 no. 3
Type: Research Article
ISSN: 1751-1348

Keywords

1 – 10 of over 11000