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Empirical evidence shows that banking development has a significant impact on macro-level economic growth through the finance-growth nexus and also highlights the prominent effect of development on local economy and household welfare, particularly in developing countries with restricted access to financial systems. The authors investigated the role of local banking development in affecting household welfare in Thailand which is a modest degree of financial access compare to other countries. The authors focus on the development of the banking sector in four dimensions, including financial depth, financial stability, financial efficiency and financial inclusion, and its impact on household welfare using the generalized method of moments approach to address the endogeneity problem. The authors employ biennial household welfare data from the National Statistical Office survey from 2007 to 2019 which covers all provinces in Thailand. The findings suggest that each type of banking development significantly affects household income and consumption in Thailand, although in different ways. Financial depth decreases income and consumption expenditure, while financial inclusion increases income and consumption expenditure (level effect). However, there are insignificant impacts on volatility of household income and consumption (volatility effect). Our findings prove that the implementation of policies to promote banking development either promote or decrease household welfare. This study can provide insight on policy impact and assist policymakers in considering the adoption of banking development policies to promote growth of the local economy, while at the same time aiming to reduce welfare inequality.

The purpose of this paper is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment in the banking sector.

The data were obtained by a survey. The survey data were collected from managers of five major local banks in Korea. The survey was conducted during May 10-June 30, 2015 with a total of 581 self-administered responses finally collected at the end (response rate: 60.5 percent).

Based on the survey data collected from the survey, the results indicate that knowledge spillovers from foreign to local banks occur in the Korean context. Demonstration effect, worker mobility and absorptive capacity of local banks are found to be effective conduits for knowledge spillovers. In addition, the authors have also found that competitive pressure negatively influences worker mobility leading to knowledge spillovers while two other elements (i.e. demonstration effect and absorptive capacity) positively mediate the relationship between competitive pressure and knowledge spillovers.

It is essential for the managers of multinational banks vigorously consider placing a strong emphasis on security of internal information and management of own personnel as the knowledge outflow through the demonstration effect and worker mobility is critical. For the managers of local banks, the discoveries suggest that active investment in human resources to maximize knowledge spillovers through the demonstration effect and through absorptive capacity is heightened by building an internal knowledge base.

The study contributes to the extant literature in the field of international business in two key ways. First, it examines the knowledge spillovers in the banking sector, a regulated industry, in Korea where empirical research is sparse. This paper’s second contribution is the finding of the key conduits of knowledge spillover phenomena by predicting and identifying the elements which affect the magnitude of knowledge flows from foreign to local banks.

Banks spend thousands of dollars on several CSR activities and communicating the same to defined stakeholders becomes a strategic task that must be artfully managed by the banks. Bank web sites now represent a useful communication platform in the reportage of CSR activities. This paper aims to report on CSR reportage amongst four leading banks in Ghana. Two of them have won CSR industry awards while the others have not.

A case study approach was adopted using Hinson et al.'s online CSR framework to analyze CSR reportage in the four banks. Two of them (one indigenous and the other, local) had previously won CSR awards at a Ghana Banking Awards ceremony in the last five years, and two had not. The data drawn from the banks were analyzed within and across the four cases.

Agricultural development bank, the bank with the most socially responsible bank of the year awards, has the weakest online CSR reportage in the study with just one CSR report online.

CSR communication is a rapidly evolving field of scholarship and this study adds to the extant literature from a developing economy banking perspective.

Details the findings of research into the establishment of the Cities and Villages Development Bank (CVDB) of Jordan. The structure of the bank, its objectives and its internal procedures and mechanisms for providing assistance to local authorities in identifying priorities for area development are also set out. The role of the CVDB in providing funding and technical expertise, and in project administration and budgetary control is also discussed. Describes the types of project to which the bank is intended to lend support, and the actual borrowing by local councils in the Al‐Balqa governate in 1987 and 1988.

This research is concerned with the development of Salam, which caters for the specific needs of farmers, who form a vital yet fragile group in most developing nations. Based on the local context of Aceh Province in Indonesia which is considered to be parallel with other developing countries, the purpose of this paper is to embrace the whole set of issues and sketch out an extended Business Model Canvas (BMC) for Salam financing by delineating the three W’s of What, Why and How Salam can be offered by Islamic Banks (IBs).

In-depth interviews were conducted with key stakeholders comprising of farmers, higher-ranking bankers of IBs, members of the Syariah Supervisory Board and academicians who are experts in Islamic finance. The re sults of the interviews added to a review of the literature were also mapped onto an extended canvas model.

Several interesting insights are derived and, primarily, that Salam is a feasible product to be offered by IBs, provided that there is a significant change in the thinking paradigm and risk mitigation models by all stakeholders, but mainly the IBs and the regulators.

This study may be limited in the number and range of respondents who were chosen for interview. There are possibly other key informants, such as regulators and local custom figures, who may willing to provide useful information. The application of BMC for Salam may also be relatively new, hence its justification for a wider implementation may still need further analysis.

This study is deemed to add significant perspectives on product development and innovation in Islamic banking and particularly regarding Salam. This study advances the method used to study Salam by contextualising the product mapping of Salam into an extended BMC.

Examines alternative ways to foster microenterprises in developing countries. Microenterprises, in contrast to maquiladoras (assembly or processing plants), contribute to just relationships in the workplace and to human development. In today’s global economy, US corporations have established a number of maquiladoras in Latin America and the Caribbean that have benefitted them as foreign owners but have had some deleterious effects on the workers and economies of the countries. US financial institutions and non‐profit organizations are providing micro‐financing, training and organization to promote microenterprises in developing countries. These enterprises, though small, contribute to self‐sufficient development at the grassroots level.

There is not a comprehensive study which covers the evolution of the Turkish Islamic liquidity management landscape so far. The purpose of this study is to show how Turkish PBs have been gradually furnished with the needed liquidity management instruments by the Turkish Treasury, Central Bank of the Republic of Turkey and other related regulatory bodies and to analyze the repercussions of the evolution of Islamic liquidity management on balance sheets of participation banks (PBs) over time. This study also aims to come up with some humble policy recommendations that can improve Islamic liquidity management set up going forward.

The study acknowledges that at least two important elements of liquidity management should be in place on the way of improving the Islamic liquidity management environment. The first one is asset side liquidity or having an adequate amount of high-quality liquid assets. The second one is liability side liquidity, meaning that having access to funding liquidity, especially to central bank liquidity. Historical development of liquidity-related asset-side and liability-side balance sheet items between 2010 and 2020 are analyzed and visualized to demonstrate the progress in the Islamic liquidity management landscape in Turkey.

From 2010 to 2020, Turkish financial authorities made a great effort to get PBs to have more proper liquidity management tools. Turkish authorities have leveled the playing field for PBs via enriching liquidity management tools. Government sukuk issuances has filled the liquid asset gap, improved the liquidity profile of PBs and lessened overall liquidity risk while introduced central bank liquidity facilitates have reduced funding liquidity risk. Islamic liquidity management setup is much more advanced and participation banking system is more resilient than the past, but there are still some missing steps that can further ameliorate the Islamic liquidity management ecosystem in Turkey.

This study is a visualized ratio analysis of PB’s improving liquidity profile in the past 10 years and fills an important gap in terms of displaying the overall Islamic liquidity management landscape in Turkey. Further studies and analysis can be built on this paper on Islamic liquidity management, banking and finance in the future. This paper can be a useful basement for researchers who intend to study on potential impacts of improving the liquidity of PBs on monetary transmission, banking profitability and overall banking system systemic risks.

Three different and interconnected areas should be further improved. These are enriching the diversity of government securities, providing central bank liquidity facilities under various available Islamic contracts and establishing an organized Islamic money market which will facilitate fund flows among various Islamic Financial Institutions (IFIs) and conventional financial institutions. Policymakers should act together, handle arising issues in a holistic manner, design and operationalize these incomplete parts of the puzzle to further optimize the playing field for the IFIs. Thus, there will be a more inclusive and competitive finance industry in which all risks are better managed and resources are more efficiently allocated.

Although various other studies are available on the Turkish Islamic banking industry, there is not such a specific study on Islamic liquidity management of Turkish PBs which makes this study a preliminary and different one. Apart from shedding light on the Turkish journey that has built a sound Islamic liquidity management infrastructure in the past 10 year, this study also shows an exemplary country experience in developing a more inclusive and robust financial ecosystem. This paper also contributes to financial development and inclusion literature as a policy paper.

This study aims to determine the effect of bank ownership on the credit risk of Indonesian Islamic local banks (ILBs).

This study uses the system generalized method of moments (GMM) estimation technique with a sample of 155 Islamic local banks in Indonesia from 2012 to 2019.

The results show that commissioner board (D.COW) ownership has a negative effect on credit risk. This indicates that an increase in the number of shares of Islamic local banks owned by the commissioner board reduces credit risk. On the other hand, government ownership (D.GOW), the Sharia supervisory board (D.SOW) and the director board (D.DOW) do not affect credit risk.

The government, Sharia supervisory board and director board need opportunities to easily own more Islamic local bank shares. Therefore, the provisions regarding the share ownership rights of the government, Sharia supervisory board and director board need to be improved to increase their role in reducing credit risk.

Previous researchers have not studied the effect of government ownership, the commissioner board, the Sharia supervisory board and the ownership of directors on credit risk at the ILB in Indonesia.

This paper aims to propose a theoretical model designed to predict the likelihood of financial distress of an enterprise and to quantify the damages whenever the financial crisis became full-blown.

Coherently with the objectives of the paper, the analysis considers the last seven exercises (period: 1999/2006) of a sample of 25.000 small- and medium-sized enterprises (SMEs) (volume of sales: < 20 mlns; number of employees: < 250) organized in the form of Ltd. The empirical investigation has been affected through the use of BvD database: Aida and Mint Italy.

The analysis shows that the ex post costs of financial distress decrease in relation to the company’s increased ability to use intangible assets and in relation to the local roots of the banks (local banks rather than international banking groups).

The instruments used for this study need to be subjected to more statistical tests to establish a more robust validity and reliability. Replication of this study using larger samples and a broader geographic base (extended at European level) is suggested.

The timely monitoring of investigated variables allows you to mitigate the costs of exit from the market.

Following the global financial crisis, this paper sheds new light on the financial distress cost of Italian SMEs.