Building Resilient Banking Sectors in the Caucasus and Central Asia

Martin, Mercedes Vera; Jardak, Tarak; Tchaidze, Robert; Trevino, Juan P; Wagner, Helen W

doi:10.5089/9781484360774.087

Cited by 3 publications

(3 citation statements)

References 13 publications

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“…Due to the weak internal crisis management system, some banks have often failed to survive after the withdrawal of the government fiscal packages and intervention measures introduced during the crisis (Vera-Martin et al, 2018). But even if fiscal packages are not meant to last forever, early sudden and not systematic withdrawal of fiscal packages can undermine the banks' internal crisis management system and render them more exposed to household and corporate credit default risks, increasing nonperforming loan ratios, interest rate risks and dollarization inducing exchange rate volatility.…”

Section: Limitations Of Bank Crisis Managementmentioning

confidence: 99%

“…As this can undermine faster economic recovery, higher unemployment rates and poverty induced by crises like Covid-19 pandemic also signifies despite the resilience of a bank's internal crisis management system, it can still take long for some banks to fully recover in case of early withdrawal of fiscal packages (Vera-Martin et al, 2018).…”

Section: Limitations Of Bank Crisis Managementmentioning

confidence: 99%

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Bank Crisis Management Strategies for Leveraging Effective Performance of the Barbados’ Banking Institutions in Times of Crisis

Davis,

Okanga,

Sambumbu

2024

J. Adv. Res. Leadersh.

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Given a series of turbulences and disruptions that most of the financial institutions in the Caribbean faced in recent years as a result of the 2008 financial crisis, Hurricane Dora, Covid-19 and now the Russia-Ukraine War that induced energy shortages and inflation, this study uses integrative review to evaluate bank crisis management strategies that can be adopted for leveraging effective performance of the Barbados’ banking institutions in times of crisis. To accomplish that, the integrative review of different studies was structured according to five steps encompassing the designation of integrative review objectives and questions, literature search, inclusion/exclusion criteria, quality assessment and data synthesis. In crisis times like during Covid-19, outcomes of integrative review indicated the Covid-19’s devastating effects on the performance of most of the banking institutions in Barbados to have been reflected in the declining deposits/savings, new clients' borrowings and loan repayments. Covid-19 also instigated an increment of non-performing loans and the bank’s market disconnectedness, whilst also undermining the implementation of growth-improvement plans and strategies. As profitability and liquidity crises set in, findings revealed Covid-19 to have disrupted the bank’s seamless operations, as declining bank personnel’s morale, motivation and commitment also affected their performance. To improve the banks' future resilience, most of the reviewed theories and literature proposed the best bank crisis management strategies like the adoption of contingency planning to improve the bank’s future resilience. Besides dedication of reserve resources for managing and mitigating the disruptive effects of unpredicted events, others suggested the essence for the encouragement of a culture of change, flexibility and agility. However, some of the reviewed studies argued that no best bank crisis management practices and strategies emerged from Covid-19 crisis management that can be replicated for managing such similar complex crises in the future. This implies as the banks were significantly overwhelmed by the Covid-19 shocks, it was not practically possible for them to think and rethink to emerge with the immediate best bank crisis management strategies that can be emulated going into the future. Since this suggests most of the banking institutions in Barbados must still explore the best crisis management strategies that can be adopted to improve the banks’ future resilience to withstand all shocks, the study concludes with the suggestion of the Systematic Bank Crisis Management Framework that the banks can adopt going into the future.

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Section: Limitations Of Bank Crisis Managementmentioning

confidence: 99%

Section: Limitations Of Bank Crisis Managementmentioning

confidence: 99%

Bank Crisis Management Strategies for Leveraging Effective Performance of the Barbados’ Banking Institutions in Times of Crisis

Davis,

Okanga,

Sambumbu

2024

J. Adv. Res. Leadersh.

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“…By providing credit to the private sector, banks can contribute to financial deepening, which ultimately leads to a more efficient financial system and higher economic growth. The importance of the banking sector's financial intermediation role in allocating funds from savers to borrowers has long been recognized in the economic literature (Vera Martin et al, 2018). The banking sector plays a crucial role in financing economic activities by providing credit to private sector entities which fuels economic growth and development by enabling investment, consumption, and production activities, Poghosyan, (2022).…”

Section: Introductionmentioning

confidence: 99%

Towards Embracing Effective Governance in Tanzania Financial Sector: Does Institutional Quality Influence Banking Sector Financial Depth?

Lotto

2024

Preprint

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This paper aimed at examining the influence of institutional quality on the banking sector's financial depth in Tanzania for a period between 1991 and 2022. In this paper institutional quality is measured by control of corruption, rule of law, government effectiveness, and regulatory quality. The paper employed secondary data from World Bank Governance development indicators and World Bank financial development indicators. A robust regression model was used to analyse data. The paper found that control of corruption, rule of law and regulatory quality have a positive influence on the banking sector financial depth while only government effectiveness influence negatively the banking sector financial depth. The findings imply that improved control of corruption, appropriately following rule of law can lead to a more transparent and accountable regulatory environment, which in turn fosters greater confidence in the banking sector, and also effective government policies attract fast deepening of financial sector. Eventually, to enhance institutional quality towards deepening banking sector depth in Tanzania, the government should focus on enhancing anti-corruption efforts and promoting transparency and accountability in both the public and private sectors. On the other hand, strategies to enhance inter-agency coordination, streamlining decision-making processes, and improving public service delivery in areas affecting the banking sector should be developed and implemented. Finally, the government should focus on strengthening its legal and regulatory frameworks with emphasis on promoting fair and impartial dispute resolution, protecting property rights, and enforcing contracts.

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Taming the Bear while Riding the Dragon? Central Asia confronts Russian and Chinese economic influences

Vercueil¹

2018

regulation

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Three waves of external influence developed in Central Asia since 1992: western, Russian and more recently, Chinese. This article aims at determine whether the Russian and the Chinese economic influences can be considered from now on as competing. It begins by distinguishing between degrees of exogeneous economic influence in order to apply this framework to the region. It then differentiates the structure of accumulation regimes among these countries and the ways they can be influenced by exogeneous changes. Third, it provides an assessment of the channels by which Chinese and Russian influence can be felt in Central Asia. Finally, it documents the current transformations that are increasing the Chinese presence and raising the risk of structural external dependency for central Asian countries.

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Building Resilient Banking Sectors in the Caucasus and Central Asia

Cited by 3 publications

References 13 publications

Bank Crisis Management Strategies for Leveraging Effective Performance of the Barbados’ Banking Institutions in Times of Crisis

Bank Crisis Management Strategies for Leveraging Effective Performance of the Barbados’ Banking Institutions in Times of Crisis

Towards Embracing Effective Governance in Tanzania Financial Sector: Does Institutional Quality Influence Banking Sector Financial Depth?

Taming the Bear while Riding the Dragon? Central Asia confronts Russian and Chinese economic influences

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