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This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model.

This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors.

The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures.

This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia.

To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.

This study aims to render a fundamental assessment of the Basel II internal ratings-based (IRB) approach by taking readings of the Australian banking sector since the implementation of Basel II and comparing them with signals from macroeconomic indicators, financial statistics and external credit ratings. The IRB approach to capital adequacy for credit risk, which implements an asymptotic single risk factor (ASRF) model, plays an important role in protecting the Australian banking sector against insolvency.

Realisations of the single systematic risk factor, interpreted as describing the prevailing state of the Australian economy, are recovered from the ASRF model and compared with macroeconomic indicators. Similarly, estimates of distance-to-default, reflecting the capacity of the Australian banking sector to absorb credit losses, are recovered from the ASRF model and compared with financial statistics and external credit ratings. With the implementation of Basel II preceding the time when the effect of the financial crisis of 2007-2009 was most acutely felt, the authors measure the impact of the crisis on the Australian banking sector.

Measurements from the ASRF model find general agreement with signals from macroeconomic indicators, financial statistics and external credit ratings. This leads to a favourable assessment of the ASRF model for the purposes of capital allocation, performance attribution and risk monitoring. The empirical analysis used in this paper reveals that the recent crisis imparted a mild stress on the Australian banking sector.

Given the range of economic conditions, from mild contraction to moderate expansion, experienced in Australia since the implementation of Basel II, the authors cannot attest to the validity of the model specification of the IRB approach for its intended purpose of solvency assessment.

Access to internal bank data collected by the prudential regulator distinguishes this paper from other empirical studies on the IRB approach and financial crisis of 2007-2009. The authors are not the first to attempt to measure the effects of the recent crisis, but they believe that they are the first to do so using regulatory data.

The purpose of this study is to demonstrate that the internal ratings-based (IRB) approach provides more effective risk discrimination than the standardized approach when calculating regulatory capital for retail credit risk exposures.

The author uses four retail credit data sets to compare regulatory capital appropriation using the IRB approach and the standardized approach. The author follows the regulatory capital calculation method recommended under Basel III. For the IRB approach, the author uses a logistic regression to determine the probability of default.

The results suggest that the IRB approach provides more effective risk discrimination across individual exposures, which allows more regulatory capital to be held against riskier exposures and less regulatory capital to be held against less risky exposures. The author further argues that the Basel III output floor, as presently constructed, may disincentivize the use of the IRB approach and further diminish the value of secured lending under the IRB approach. To address this issue, the author offers two simple adjustments to the current design of the output floor.

While studies have argued the idea of risk-sensitive regulatory capital, the author has not observed any research that empirically compares the risk-sensitivity of regulatory capital across retail credit exposures, which makes up a significant portion of many banks’ credit exposures. This study also highlights what appears to be a major point of concern for the output floor, which is set to be phased in starting January 2022. This is of particular value because this point has not appeared to receive any attention in the literature thus far.

This paper aims to investigate the principles of high reliability organisations (HROs), present in safety and crisis teams, as applied to innovation teams. Safety and crisis teams cannot fail, as failure leads to disaster and casualties. Innovation teams cannot fail either, as this harms the organisations’ competitiveness and effectiveness. Do HRO principles, rooted in mindful infrastructure, enable innovation resilience behaviour (IRB)?

A study of 18 innovation projects performed by project teams was carried out. A survey by team members/leaders of these teams was completed; team members/leaders of other projects were added to achieve a larger sample. Mindful infrastructure consists of team psychological safety, team learning, complexity leadership and team voice. The analyses assessed the teams’ mindful infrastructures as a causal condition enabling IRB.

Applying qualitative comparative analysis (QCA), the findings indicate that mindful infrastructure enables team IRB, which is a set of team behaviours indicating their resilience when encountering critical incidents. Teams apply different “paths” to IRB.

The exploratory study’s generalizability is limited. The findings nonetheless indicate the usefulness of non-linear techniques for understanding different roads to successful innovation processes.

HRO principles are applicable by non-HROs. These require investments in organisational learning.

HRO studies fail to account for the antecedents of HRO principles. This study groups these antecedents of team behaviour into a mindful infrastructure. QCA has not been applied within the domain of HROs before and only scarcely within the domain of innovation teams.

The purpose of this paper is to re-examine the moderating effect of career stage on the relationship between job embeddedness and innovation-related behaviour (IRB).

Data were collected from a sample of 310 Chinese media organisation employees and were analysed using moderated structural equation modelling.

Career stage significantly moderated the relationship between job embeddedness and IRB; individuals who experienced high job embeddedness in their early career stage were found to be engaged in more IRBs than those who experienced low job embeddedness in their early career stage. Moreover, the author also found that individuals who experienced high job embeddedness at mid-late career stages were less engaged in IRB, as compared to those at earlier career stages.

These findings contribute to the understanding of the relationship between employee job embeddedness and IRB at different career stages. The findings are limited by the cross-sectional nature of the data.

This study demonstrates that individuals at a mid-late career stage may define their work roles differently to those at an early career stage. Employers often expect individuals in the mid-late career stage to facilitate the work of others and to assist junior colleagues in their professional growth (Super et al., 1996).

The purpose of this paper is to investigate whether insights into high reliability organizations (HROs) are useful for innovation management teams. HRO teams can keep failure to a minimum level due to high alertness and resilience. Project teams working on innovation management could benefit from HRO principles and thus reduce their chances of failure.

A survey among in total 260 team members and team leaders of project teams in innovation management was conducted to study the relation between, on the one hand, organizational features of HROs (“mindful infrastructure”) and HRO principles (adjusted as “innovation resilience behaviour”, IRB), and on the other hand, between mindful infrastructure and IRB and project outcomes.

From the results it could be concluded that mindful infrastructure associates with IRB, and that IRB has a mediating role in the relation between mindful infrastructure and project outcomes. Innovation management project teams can thus learn from the practice of HRO teams.

To the authors’ knowledge, HRO-thinking has not been applied to team behaviour in innovation management. A fruitful transfer of insights from the domain of safety and crisis management seems applicable to the domain of innovation.

Librarians at Eastern Virginia Medical School established a proactive role in research support when the position of Institutional Review Board (IRB) librarian was created in 2001. Aims to confirm that the IRB librarian assists the school's boards in ensuring human subjects’ protection. Generally, this service is provided in the form of comprehensive searches of medical and other literature and news.

A program was instigated in order to provide expertise in literature searches to support board members, as they review individual protocols.

Although serving a relatively small number of users, the program has a major impact on the school's research agenda.

Describes lessons learned, problems encountered, outcomes, and professional gains and lists materials for further reading.

The purpose of this paper is to apply theoretical concepts of corporate and bank boards to the Boards of Directors at Federal Reserve Banks and at US Basel II A‐IRB adopters. The Basel II Accord set to take effect in the USA in 2009 provides direction as to board oversight in Pillar 2. Since the Federal Reserve is one agency responsible for this document, the paper proposes to investigate the governance structure at US banks, presumably adopting (or opting in) the Basel II A‐IRB framework.

The board structure at Federal Reserve District Banks as of 2006 is examined. Also analyzed are the board structure, executive compensation, and ownership structure at the 22 banks identified as Basel II A‐IRB adopters. These results are then compared with current views and standards of “good governance” in the literature.

It was found that there is a fairly diverse representation on the board (in terms of female directors), a large proportion of directors are CEOs (generally of other banks), and that boards comprised a majority of outside directors. Several governance characteristics are contrary to “good governance” characteristics described in the literature. Further, banks adopting A‐IRB procedures in Basel II may need to improve governance structures to be in compliance with Pillar 2 of Basel II.

The Federal Reserve System, in an effort to increase board oversight as part of a risk management framework, should also consider its own board structure in light of current research on private‐sector boards. Both Federal Reserve District Boards and Basel II Boards should work towards exemplary corporate governance in light of their place in the US banking system.

The paper investigates the governance structures of banks.

Based on the emerging stream of research in moral psychology and behavioral ethics which shows that accessibility of moral constructs influences ethical decisions, judgments, and behaviors, perceived deviance tolerance (PDT) is defined as “leaders’ tolerance of deviance perceived by employees.” The purpose of this paper is to propose and empirically test a theoretical model that explains how and why PDT influences employees’ moral psychology and behaviors in interpersonal contexts.

The study takes 298 leaders and 429 employees from 16 large Chinese enterprises as samples.

Results across two studies provide consistent support for the proposed model and advance our understanding about how employees’ perception of leaders’ deviance tolerance influences their negative and positive behaviors.

Thus, findings of this research contribute to knowledge on the interpersonal effects of cognition in employees’ behaviors and enrich the application of social control theory.

The IRB capital requirements of Basel II define the minimum level of capital that the bank has to retain to cover the current risks of its portfolio. The major risk that many banks are facing is credit risk and Basel II provides an approach to calculate its capital requirement. It is well known that Pillar I Basel II approach for credit risk capital requirements does not include concentration risk. The paper aims to propose a model modifying Basel II methodology (IRB) to include name concentration risk.

The model is developed on data based on a portfolio of Greek companies that are financed by Greek commercial banks. Based on the initial portfolio, new portfolios were simulated having a range of different credit risk parameters. Subsequently, the credit VaR of various portfolios was regressed against the credit risk indicators such as Basel II capital requirements, modified Herfindahl Index and a non-linear model was developed. This model modifies the Pillar I IRB capital requirements model of Basel II to include name concentration risk.

As the Pillar I IRB capital requirements model of Basel II does not include concentration risk, the credit VaR calculations performed in the present work appeared to have gaps with the Basel II capital requirements. These gaps were more apparent when there was high concentration risk in the credit portfolios. The new model bridges this gap providing with a correction coefficient.

The credit VaR of a loan portfolio could be calculated from the bank easily, without the use of additional complicated algorithms and systems.

The model is constructed in such a way as to provide an approximation of credit VaR satisfactory for business loan portfolios whose risk parameters lie within the range of those in a realistic bank credit portfolio and without the application of Monte Carlo simulations.