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Article
Publication date: 1 April 1995

Colleen W. Cameron

Results of a test for differential performance applied to data foruniversal and non‐universal banks revealed that the performance ofuniversal banks was not superior to…

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Abstract

Results of a test for differential performance applied to data for universal and non‐universal banks revealed that the performance of universal banks was not superior to that of the non‐universal banks. The study, therefore, does not support the performance theory as a basis for the global trend towards universal banking. Rather, there is implied support for the theory that loss of comparative advantage by commercial banks in the credit market and an increasingly competitive global market for financial services are both pushing major countries to adopt the universal model. Specific attention was given to the NAFTA countries bordering the USA. A test for convergence revealed that relatively new universal banks in those countries were converging towards the performance levels of other established universal systems; the project impact on the non‐universal US banking system in the 1990s is of serious concern.

Details

International Journal of Social Economics, vol. 22 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 15 August 2019

Haizhi Wang, Desheng Yin, Xiaotian Tina Zhang and Xinting Zhen

The purpose of this paper is to empirically investigate universal banks as an important source of external funding and their effects on borrowing firms’ innovation outputs.

Abstract

Purpose

The purpose of this paper is to empirically investigate universal banks as an important source of external funding and their effects on borrowing firms’ innovation outputs.

Design/methodology/approach

The authors employ regression analyses including a difference-in-difference approach and a two-sided matching method to ensure the robustness of the findings. The authors further explore some potential channels and boundary conditions for the main findings.

Findings

The authors find that borrowing from universal banks is negatively associated with the quantity of firm innovation, but not the quality of firm innovation. The authors document that borrowing firms reduce their R&D expenditures and rely more on external partners to produce innovation outputs after loan originations from universal banks. The negative relation between universal bank lending and the quantity of firm innovation is more prominent for unrelated innovation and for financially constrained firms.

Research limitations/implications

The evidence reveals that universal banks may use their informational advantage and market power to limit their corporate borrowers’ investment in innovation activities.

Originality/value

The paper extends the line of research on the source of financing and firm innovation, and establishes a robust relationship between capital market and product market.

Details

Managerial Finance, vol. 45 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 November 1997

John S. Jahera and David A. Whidbee

The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are removed…

Abstract

The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are removed, greater integration of banking services is developing throughout the world affecting the performance and structure of banking institutions. This research examines the stock returns and volatility of stock returns for a sample of banks in the United States, Europe, Canada and Japan. The general focus is to identify factors influencing the return and risk and to examine cross‐country differences in these factors. The results suggest that while size does not affect return volatility for any of the categories of banks, it does affect returns for banks in Japan, the U.S. and other non‐universal banking systems. Likewise, the investment in fixed assets appears consistently to adversely affect returns. A number of differences are found across country borders and across type of institutions (i.e. universal versus non‐universal banks).

Details

Managerial Finance, vol. 23 no. 11
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 22 November 2011

Jaspal Singh and Gagandeep Kaur

The purpose of this paper is to determine the factors that have an impact on customer satisfaction as regards the working of select Indian universal banks.

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Abstract

Purpose

The purpose of this paper is to determine the factors that have an impact on customer satisfaction as regards the working of select Indian universal banks.

Design/methodology/approach

The study was conducted using the survey method. Data were collected through a well‐structured questionnaire from a sample of 456 respondents.

Findings

The major findings of the study show that customer satisfaction is influenced by seven factors: employee responsiveness, appearance of tangibles, social responsibility, services innovation, positive word‐of‐mouth, competence, and reliability. The results of multiple regression showed that three variables: social responsibility, positive word‐of‐mouth, and reliability, are statistically significant in the model at 5 percent significance level that have an impact on the overall satisfaction of the customer.

Research limitations/implications

The study suffers from a regional bias since it covers only Punjab and Chandigarh. The results do not have general applications to different banks in the same sector and the same banks in different cities of India. Increased sample size and multi‐city sampling can be considered for future research for better generalization of the findings. Results would be more appropriate if the sample size could be large. These limitations offer an opportunity for further research.

Originality/value

The study is quite useful for understanding and comprehending the changes in customer banking behaviour, so to enable the policy makers to develop appropriate and adaptive strategies. The paper provides determinants of customer satisfaction. With an effective customer satisfaction research program, banks will be able to encash business, i.e. gain opportunities by putting themselves at a competitive advantage.

Details

International Journal of Commerce and Management, vol. 21 no. 4
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 1 November 1996

Anthony Saunders and Ingo Walter

Considers universal banking’s role in the evolution of national financial systems, notably with respect to their role in overall economic performance. Deals with…

1640

Abstract

Considers universal banking’s role in the evolution of national financial systems, notably with respect to their role in overall economic performance. Deals with conceptual and empirical evidence regarding mergers and acquisitions (M&A) in the financial services industry, with special relevance to the Asia‐Pacific region. Develops a typology of intra‐ and inter‐sectoral M&A transactions among banks, insurance companies and securities firms, and examines the global deal flow during the 11‐year 1985‐1995 period. Discusses the dynamics of M&A transactions in the financial services industry, notably with respect to exploitation of economies of scale and economies of scope that are core to the universal banking concept. Develops the implications for the Asia‐Pacific region, with reference to the static and dynamic efficiency properties of national financial systems.

Details

Management Decision, vol. 34 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 7 September 2012

Francesc Relano and Elisabeth Paulet

The aftermath of the subprime mortgage crisis has accelerated a pre‐existing process of ethical approach in the banking industry. Today, all banks claim to be socially…

2198

Abstract

Purpose

The aftermath of the subprime mortgage crisis has accelerated a pre‐existing process of ethical approach in the banking industry. Today, all banks claim to be socially, environmentally and economically committed with the philosophy of sustainable finance. The purpose of this paper is to show that, beyond the outward similarities, there are three different types of banking approach, each reflecting a distinct business model: banks whose ethical/social approach is mainly based on what they say, represented by universal banks; banks whose ethical/social approach is based on what they are, essentially the co‐operative banks; banks whose ethical/social approach is based on what they do, the so‐called ethical banks.

Design/methodology/approach

The paper bases its argument on the German banking industry, which is a big European country with a fairly diversified banking sector. The paper examines three types of sources for each of the above‐mentioned categories of banks: the social and environmental reporting, the conformity or not with the principles of the social and solidarity‐based economy and the different types of financial activities as reflected in their balance sheet.

Findings

The paper concludes that more ethical behaviour leads to both economic performance and social gains which increase wealth for all partners.

Research limitations/implications

The proposed methodology could be extended to other European banking systems to discuss their implications as regards corporate social responsibility.

Practical implications

This contribution will help the reader to evaluate banking communication as regards corporate social responsibility in their daily activity.

Originality/value

This research will give an insight based on the documents published by banking institutions to measure their implication on corporate social responsibility.

Article
Publication date: 11 November 2020

John Kwaku Amoh, Dadson Awunyo-Vitor and Kenneth Ofori-Boateng

This study aims to assess customers’ awareness and level of knowledge on electronic banking fraud.

Abstract

Purpose

This study aims to assess customers’ awareness and level of knowledge on electronic banking fraud.

Design/methodology/approach

A well-structured interviewer-assisted questionnaire was used to collect data from 400 clients of a case study bank. Data were analysed using descriptive statistics. Kendall’s coefficient of concordance (W) statistic was also estimated to track and rank the fraudulent activities identified by the respondents with respect to electronic banking.

Findings

This study found that respondents were aware of most of the specific forms of electronic banking fraud. Firstly, automated teller machinfraud is the most common scam for which customers are aware of. Secondly, institutional factors such as lack of monitoring and education of clients are major factors which expose the bank and clients to fraudulent electronic banking acts. Thirdly, the most effective action that can be taken to prevent fraud in the bank is increased security and personal identification number (PIN) protection education.

Research limitations/implications

This study focusses on a universal bank and uses data from customers of only one branch of the bank to achieve the research objectives.

Originality/value

One uniqueness of this paper is in the adoption of Kendall’s coefficient of concordance (W) statistic to track and rank fraudulent banking activities. The findings will allow financial institutions to know the forms of current and innovative electronic banking fraudulent activities that customers are aware of. It will also enable the banks to find ways to inform their clients about emerging electronic banking fraudulent activities to prevent them from falling victims.

Details

Journal of Financial Crime, vol. 28 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 April 2000

Joseph G. Nellis, Kathleen M. McCaffery and Robert W. Hutchinson

Completion of the European Single Market Programme in Financial Services has, as expected, set in motion a rationalisation process within the European banking industry…

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Abstract

Completion of the European Single Market Programme in Financial Services has, as expected, set in motion a rationalisation process within the European banking industry, as banks respond to increasing competitive pressures that are having a dampening effect on their traditional business margins. Assesses the importance of these developments in the context of the policy options that are open to the European banking community in the new millennium. In particular, given the prospect of an integrated European economy, now commonly referred to as Euroland, the paper addresses, as its central theme, the potential for the development of pan‐European banks that would then be in a position to configure longer‐term globalisation strategies. Evolution in this direction, if it occurs, is important from a European Central Bank policy perspective, since it would raise systemic risk issues if a small number of European licensed banks became “too big to fail”. We conclude, however, that the most prominent strategic response is likely to be based on the European “regionalisation” of banks and markets rather than pan‐Europeanisation.

Details

International Journal of Bank Marketing, vol. 18 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 27 March 2020

Martin Boďa and Katarína Čunderlíková

This paper studies the density of bank branches in districts of Slovakia and aims to identify determinants that explain or justify districtural differences in the density…

Abstract

Purpose

This paper studies the density of bank branches in districts of Slovakia and aims to identify determinants that explain or justify districtural differences in the density of bank branches.

Design/methodology/approach

Bank branch density is measured by the number of branches in a district, and banks are further differentiated by size and profile. Potential determinants of bank branch density are sought through univariate and bivariate Poisson regressions amongst economic factors, socioeconomic factors, technological factors, urbanization factors, and branch market concentration.

Findings

Using data from 2016, it has been found that branch numbers in districts are determined chiefly by five factors that describe their economic development, population size with its characteristics, and existent branch concentration. The spatial distribution of bank branches in the territory of Slovakia is not random, but is found to be affected by environmental factors measurable at the districtural level. Only 22 Slovak districts representing administrative or economic centers are expected to be over-branched.

Practical implications

The study helps to identify factors that need be accounted for in planning and redesigning of branch networks or in implementing mergers and acquisitions on a bank level. The results are also useful in regional policy and regulatory oversight.

Originality/value

The present study is unique since the decision-making processes of Slovak commercial banks in planning the location and density of their branch networks have not been rationalized and researched as of yet.

Details

International Journal of Bank Marketing, vol. 38 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Open Access
Article
Publication date: 4 December 2017

Mabid Ali Al-Jarhi

This paper aims to provide an economic rationale for Islamic finance.

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Abstract

Purpose

This paper aims to provide an economic rationale for Islamic finance.

Design/methodology/approach

Its methodology is simple. It starts with listing the contributions to economic analysis relevant to the required rationale in the theories of banking, finance, price, money and macroeconomics, to identify the main rationale for Islamic finance. A concise description of the author’s model for an Islamic economic system, within which Islamic finance can be operational, is provided.

Findings

The paper finds distinct advantages of Islamic finance, when properly applied within the author’s model. Islamic finance can therefore be a candidate as a reform agenda for conventional finance. It opens the door for significant monetary reform in currently prevalent economic systems.

Research limitations/implications

The first limitation of the paper is that the distinct benefits of Islamic finance are all of macroeconomic types which are external to Islamic banking and finance institutions. They are therefore not expected to motivate such institutions to apply Islamic finance to the letter, without regulators interference to ensure strict application. The second limitation is the necessity to set up enabling institutional and regulatory arrangements for Islamic finance.

Originality/value

The results are unique as they challenge the received doctrine and provide non-religious rationale for Islamic finance.

Details

ISRA International Journal of Islamic Finance, vol. 9 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

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