Non Performing Loan Rate is the most important issue for banks to survive. There are lots of factors responsible for this ratio. Some of them belong to firm level issues and some are from macroeconomic measures. However this study is based on the blend. It considers the Real GDP per Capita, Inflation, and Total Loans as independent variables, and Non Performing Loan Ratio as dependent variable. Study uses the data of US banking sector from official web sources of US Federal Reserve System.
Research objectives: To research an overview of e-banking service quality, customer satisfaction, customer loyalty, switching cost, customer trust and the relationship among variables; to develop a research model on the relationship among e-banking service quality, customer satisfaction and customer loyalty affected by intermediate factors including switching cost and customer trust in e-banking sector in Vietnam.
Joseph Schumpeter argued in 1911 that banks play a pivotal role in economic development because they choose which firms get to use society’ s savings. According to this view, the banking sector alters the path of economic progress by affecting the allocation of savings and not necessarily by altering the saving rate. Thus, the Schumpeterian view of finance and development highlights the impact of banks on productivity growth and technological change.
This paper examines episodes of banking sector distress for a large sample of countries,
highlighting the experience of Japan. We estimate a model that links the onset of banking
problems to a set of macroeconomic variables and institutional characteristics. The model
predicts a high probability of banking sector distress in Japan in the early 1990s, matching actual
developments closely, and suggests that the Japanese episode fits a well-established pattern
characterizing banking sector problems elsewhere.
Chapter 2 - The banking sector. After studying this chapter you will be able to: Evaluate the functions and activities of commercial banks, identify the main sources and uses of funds and reasons for changes, analyse the importance of changes in the role of banks on the financial system,…
Chapter 14 - Regulating the financial system. The purpose of this chapter is: To look at the sources and consequences of financial fragility focusing on the banking sector, to look at the institutional safeguards the government has built into the system in an attempt to avert financial crises, to study the regulatory and supervisory environment of the banking industry, to examine emerging approaches to regulation that focus on the safety of the financial system rather than on individual institutions.
The credit derivatives market is booming and, for the first time, expanding into the banking sector which previously has had very little exposure to quantitative modeling. This phenomenon has forced a large number of professionals to confront this issue for the first time. Credit Derivatives Pricing Models provides an extremely comprehensive overview of the most current areas in credit risk modeling as applied to the pricing of credit derivatives.
Although the growing literature on the importance of finance in economic growth contrasts
bank-based financial systems with market-based financial systems, little attention has been paid to the
role of the bond market. Correspondingly the role of the bond market has been very small relative to
that of the banking system or equity markets in most Asian emerging economies. We argue that the
underdevelopment of Asian bond markets has undermined the efficiency of these economies and
made them significantly more vulnerable to financial crises....
The British East India Company established "The Hindustan
Bank" in Kolkata and Mumbai in 1770 and later in 1785 established
other banks. In early nineteenth century three Presidency Banks,
i.e., Bank of Bengal, Bank of Bombay and Bank of Madras were
established. The first important event in the history of banking in
India took place in 1919 when the Presidency Banks were
amalgamated and Imperial Bank of India was set up.
Against the backdrop of the close connection between the implementation of monetary policy and the
processing of payments through the central bank, the Bundesbank pays particular attention to the
encouragement of large-value payments. These payments are processed through RTGSplus
, which at
the same time provides a connection to the TARGET system.
The presence of the lagged dependent variable Ci(-1) has a dual interpretation. On the
one hand, it reflects relationship banking in the vein of the literature discussed in section 2.1.
Long-term enterprise-bank relations help to reduce information asymmetries; banks would be
more willing to lend again if they have already done so (we consider the banking sector as a
whole as the lending party). On the other hand, a positive association can be interpreted as
evidence of soft budget constraints on the part of the banks in the sense of Berglof and Roland
One motivation that was lacking in the United States was the need to help finance the
In fact, the absence of a sizable outstanding national debt posed a
problem in designing a system that would not compete with commercial bank lending
activities. Sensitivity was high, as well, to the possibility that a nationwide postal bank
might drain funds from local to big-city financial markets.
Finally, the review in its concluding chapter looked at the future of so-
cial funds. Broadly, three alternative paths were considered: The first
was to focus on the question of transition. Because social funds are strong
at demonstrating good practices and good governance, they can be im-
portant in drawing best practices from other sectors. For example, there
are some best practices in the water and sanitation and in the rural trans-
port sectors. More experiences need to be exchanged outside social funds
with some of the better programs in other sectors.
In exercising the oversight function, close cooperation between the bodies overseeing payments and
the BaFin is of fundamental importance. In the field of electronic money the Deutsche Bundesbank
also cooperates with the Federal Agency for Security in Information Technology (BSI) and takes
advice from this body, as systems with electronically stored units of value are subject to a special
The legal foundation for banking supervision is the KWG.
The Bundesbank is in practice the only means - other than relying on their competitors - for smaller
private banks without a giro network of their own to execute payments intended for other banks on
behalf of their customers.
Since 1982 a combined private national payment transaction company has existed for the German
banking sector, Gesellschaft für Zahlungssysteme mbH (GZS). This is an independent processing
company which ensures the low-cost handling of card-protected payments and develops new
electronic payment systems.
With the value of their toxic assets written down to zero, a number of banks will no
longer meet the legislated core capital requirement. The government should take a stake
in these banks in order to recapitalize them. The prior removal of troubled assets will
limit the risk taken on by the government and provide good prospects for the appreciation
of its investment. The government’s risk of loss (through the bad bank) and opportunity
for success (through the rescued good bank) would thus be clearly separated from one
another. This would also contribute to transparency.
This paper discusses the effects of bank competition on bank loan and deposit rate levels as well as on
their responses to changes in market rates and, hence, on the monetary policy transmission mechanism.
Given the prominent role of the banking sector in the euro area’s financial system, it is of significant
importance for the ECB to monitor the degree of competitive behaviour in the euro area banking
market. A more competitive banking market is expected to drive down bank loan rates, adding to the
welfare of households and enterprises.
Customers who purchased caps are not included in the scope of the review unless they
complain to their bank during the course of the independent review and are non-sophisticated
customers. If the customer does complain, it will be considered in the same way as the other
interest rate hedging products (except structured collars) category. However, if a customer
complains after the independent review, their complaint will be dealt with in accordance with
the banks’ usual complaints handling procedures.