Search results

The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The purpose of this study is to investigate the short- and long-run linkages between bank net interest income and deposit liabilities interacted with corruption, to establish the influence of corruption in deposit mobilisation drive of banks in Nigeria. Also, the study analysed the causal relationship between selected bank variables and fraud.

The study used quarterly data on selected variables from 1Q 1993 to 4Q 2017 sourced from Nigerian Deposit Insurance Corporation (NDIC) annual reports and Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. Deposit Money Bank various deposit liabilities are interacted with a corruption index and used as the independent variables, while bank earnings serve as the dependent variable. Error Correction Model (ECM) and Engel Granger approach to co-integration technique were used to analyse the data.

The findings reveal that various bank deposit liabilities interacted with corruption index has a negative effect on bank profitability in the long run, though only corrupt fixed deposit is statistically significant at the 5 per cent significance level. Bank total asset, total loan and advances and fraud have a significant effect on bank profitability at 1 and 10 per cent significance level. The findings also reveal that banks profit from corrupt fixed deposit and demand deposit in the short run.

Text

The literature is awash with bank lending corruption and various institutional factors such as competition among banks, credit bureau and information sharing about borrowers, bank supervisory policies, loan loss provisioning, bank ownership structure and regulatory environment and anti-corruption measures. The aspect of deposit mobilisation and corruption has not been well researched in literature; this study, therefore, fills the gap in the literature by examining the extent deposit money banks contributed to corruption in Nigeria through their cutthroat deposit mobilisation drive.

The purpose of this paper is to empirically examine the effect of corruption on public debt and economic growth in 20 developing countries over the period 1996-2018.

This study makes use of the autoregressive distributed lag (ARDL) model to detect the long-term relationships, on the one hand, between corruption and public debt and, on the other hand, between corruption and economic growth.

The empirical results reveal that corruption increases the debt-to-GDP ratio and that the interactions between corruption and public revenues and between corruption and public spending have a positive influence on public debt in the long run. The estimations also show that high corruption hampers long-term economic growth and increases the negative effect of public debt on economic growth in developing countries.

While corruption is a prevalent phenomenon in most developing countries, the literature still lacks empirical examination of its economic effects. This study fills this gap with the aim of highlighting that high corruption hinders development in developing nations. This study also examines the impact of the interactions between corruption and components of the fiscal balance on public debt. Moreover, while the existing empirical literature uses regression techniques, this paper uses a panel ARDL approach to detect the long-term effects of corruption.

This paper takes listed companies in the Shanghai and Shenzhen stock markets from 1998 to 2013 as a research sample, investigating the role played by corruption and financial development, along with the interactions between the two, in determining the factors of a company’s capital structure in China’s legal environment. The paper aims to discuss these issues.

Using data of listed companies and the regional level of China during 1998-2013 and the STATA process (xtabond2 command) developed by Roodman (2006) to implement the two-step GMM estimation, empirically investigate the effect of interactions between corruption and financial development on a company’s capital structure in Chinese legal environment.

After both controlling for China’s legal environment, a company’s internal factors, and industry factors and considering endogeneity problems, the results show that corruption and financial development have significant positive influences on a company’s bank loans. However, when investigating the interactions between corruption and financial development, the authors find that financial development does not increase a company’s bank loans in areas with a higher level of corruption. However, corruption and financial development have insignificant influences on a company’s long-term bank loans.

The findings in this study suggest that a company’s capital structure was affected not only by the company’s internal factors and industry factors, but also by the company’s external factors, and the interactions between these factors.

To improve the financing circumstances of company credit, the next point of reform should be to improve their procedures for administrative examination and approval of bank creditors and strengthen the punishment and prevention of credit and judicial corruption to weaken the negative effects of corruption on firms’ capital structure decisions.

This study uses only Chinese listed companies, and considers the influence of the interaction of corruption and financial development on a company’s capital structure decisions.

This paper aims to examine the impact of corruption and money laundering (ML) on the profitability and stability of Islamic banks.

This study used the data of 53 conventional and 19 Islamic banks of Pakistan and Malaysia to have comparative insights. The empirical methods include the fixed effect and random effect regression and generalized methods of moment for robust results.

The results indicate that Islamic banks gain from corruption and ML. Corruption and ML affect bank profitability and stability positively in a less corrupt environment, i.e. Malaysia; however, corruption hurts Islamic banks’ performance, and ML favours Islamic banking profitability and stability in a more corrupt environment, i.e. Pakistan.

The present study pioneers the debate on corruption and ML related to Islamic banking profitability and stability. This study provides important insights to regulators and Shariah advisors to build a real model of Islamic banking.

The purpose of this paper is to examine the likelihood that the presence of the deposit insurance policy encourages risk appetite behavior of banks in Sub-Saharan African (SSA). It argues that financial system stability is not a function of the choice of a deposit insurance scheme, but countries' peculiarities such as quality of institutions and the macroeconomic environment.

The study used the stereotype logit regression model and covers 47 SSA countries. Countries are categorized into two: explicit and implicit DIP scheme.

The study found that corrupt countries are more likely to adopt the implicit policy, while the explicit policy exposes them to credit risk, insolvency, and negative macroeconomic shocks, a reflection of weak institutions and unhealthy competition.

Paucity of substantial local literature on institutional perspective of deposit insurance (DI) constitutes the major limitation of this study.

The sub-region, therefore, faces a conundrum - desiring a deposit insurance scheme, but lacking the required institutions to maintain either a publicly owned regulatory system or the ability to transplant the private club model.

This study contributes to the institutional perspective of DI from SSA institutional perspective.

This study aims to examine the effect of corruption on the economic growth of Ghana and to establish the strength of relationships among corrupting activities.

The research used structural equation modelling on selected data from the World Economic Forum executive opinion survey on corrupting activities and data on economic growth measures from the world development indicators to achieve the research objectives.

The results show that all the observed corrupting activities (except diversion of public funds) adversely influence selected economic growth indicators. The study concludes that corrupting activities, independently and mutually impede Ghana’s economic growth.

The research is limited by the availability of data, hence, quarterised data on selected variables from 2008 to 2017 were examined.

The results suggest that corruption encapsulates all the seven activities of corruption to one degree or another, which are economic growth hampering.

The study extends the corruption-economic growth nexus literature by incorporating several corrupting activities from multiple sectors/areas as follows: the government and politicians, private businesses, judiciary and citizens into a single model to test how these independently and mutually impede economic growth. By identifying and using specific corrupting activities from distinct and diverse sectors/areas to capture both the supply side and demand side of corruption and the private and public sectors, a better comprehension of the corruption-economic growth nexus is attained. This may aid emerging economies and anti-corruption agencies in drafting specific and targeted corruption reduction policies/programmes to minimise poverty and raise living standards to aid the realisation of sustainable development goals.

In late April 1973, Charles P. Sutcliffe, the Commissioner of the Royal Hong Kong Police Force (RHKPF), received confidential information that Chief Superintendent Peter F. Godber, Deputy District Police Commander for Kowloon, was remitting money abroad. This information was transmitted to James J. E. Morrin, the Director of the Anti-Corruption Office (ACO), for investigation. By the end of May 1973, investigations by the ACO officers revealed that Godber had deposited in Hong Kong banks or remitted overseas HK$650,000 (US$128,332) since 1968 (Blair-Kerr, 1973a, pp. 3–4).

This paper aims to explore the impact of liquidity risk, credit risk, funding risk and corruption on bank stability of the banking system in Pakistan.

The empirical analysis is confined to 24 retail banks, which include 5 Islamic and 19 conventional banks during the period of 2007-2015.

The findings of this study suggest that bank size, liquidity risk, funding risk and corruption exert a positive impact on bank stability. Additionally, the authors find a negative relationship between credit risk and bank stability.

As per the knowledge of the authors, the present research is the first attempt that discusses the issues of bank stability related to risk and corruption faced by the banking system.

The main purpose of this paper is to critically examine the impact of black money whitening opportunity on the Bangladesh housing market and its ramifications for honest taxpayers and criminal conduct of the people in the country.

This paper relies on both primary and secondary materials and carries out an archival analysis of the resources available in libraries and online databases.

It demonstrates that black money whitening opportunity has failed to create additional demands for housing property, rather it encourages money laundering, corruption and other criminal activities. Hence, a set of specific recommendations have been submitted to effectively deal with the prevention of generation of black money instead of allowing them to be invested in properties with impunity.

The discussions are concentrated on the legality of offering amnesty to black money holders and the impact of such indemnities on the housing market in Bangladesh; hence, it does not consider impacts on other economic sectors. It is expected that the publication of this paper will stimulate the government of Bangladesh to discontinue the disputed amnesty in Bangladesh, and other nations having similar problems with black money will be encouraged to follow suit.

It is anticipated that the implementation of the recommendations furnished in this paper will contribute to significantly decreasing money laundering, corruption and other offences involving money in Bangladesh and in other countries.

Prevention of corruption and other financial crimes.

This paper represents its originality in its critical analysis of frequent offerings of the opportunity for whitening black money and their unfair impacts on honest taxpayers and resultant stimulation for engaging in money laundering, corruption and other felonies. It evidently justifies the assumption that such amnesties to wrongdoers are contrary to the national constitution, anti-corruption and anti-money laundering legislation and they wound the sense of ethical behaviour of human beings. Moreover, it proves the hypothesis that such opportunities being offered to black money holders have no positive contribution towards creating additional demands in the country’s property markets.

The natural resources curse theory argues the higher dependency on natural resources leads to many socio-economic problems. The purpose of this study is to examine the relationship between corruption and banking soundness and also to compare the extent of this effect between the two groups of rich and poor in natural resources countries.

To this aim, the authors apply a panel data set comprised of 98 countries from 2012 to 2015.

The results show that nations with a higher level of corruption have poorer banking soundness. The authors also find that by considering the resource curse theory and the effect of natural resource rents in the model, the adverse impact of corruption on banking soundness is more substantial in countries with a higher natural dependency level (rich in natural resources).

Though studies have been conducted on corruption and banking soundness, this paper, by using resources curse theory, articulates that corruption is one of the most critical factors affecting banking soundness and has a destructive effect on the health of the banking system and the economy of almost all countries, especially in natural resource-based economies. This study will appeal to banks authorities, governments, policymakers, oversight financial institutions and those who have a vested interest in regulating financial crimes globally. They can prevent financial and banking crises by cooperating in the fight against corruption worldwide.