Pillar 3: Market Discipline of the Key Stakeholders in Cee Commercial Bank and Turbulent Times

Abstract

The study presented in the paper contributes to covering the gap in the area of sufficient information disclosure that also increases the interests of relevant stakeholders in contributing to depository market discipline and in being relevant to their interest within Pillar 3 framework. This paper is focused on an analysis of website data dedicated to Pillar 3 disclosures of commercial banks and on studying the behaviour of stakeholders in relation to the timing of serious market turbulence. The examined data consists of log files that were pre-processed using web mining techniques and from which were extracted frequent itemsets by quarters and evaluated in terms of quantity. The authors have proposed a methodology to evaluate frequent itemsets of web parts over a dedicated time period. The results show that stakeholders’ interest in disclosures is lower after turbulent times in 2009, higher in the first quarter, also higher together with annual reports (lower for Pillar 3 solo information). The paper’s results suggest that further changes in commercial banks´ information disclosure are inevitable in order to achieve an effective market discipline mechanism and meaningful disclosures according to the regulator´s expectations.

Identification of Changes in VLE Stakeholders’ Behavior Over Time Using Frequent Patterns Mining

“…The similar methodology as is used in this paper was applied in the paper [34]. The authors analysed web server logs and seasonality in stakeholders' visits of a group of web pages to find behavioural patterns in observed quarters.…”

“…The Apriori algorithm, a horizontal breadth-first search algorithm [3], together with a structured tree procedure that requires only one pass through data, has been finally selected. This algorithm is enclosed in the association rule analysis package STATISTICA Sequence, Association, & Link Analysis [34].…”

“…The proposed methodology can be generalized to other domains, for example, for identification of the seasonality and trends in requesting information on institutional websites or ecommerce [34].…”

Social safety and behavioral aspects of populations financial inclusion: A multicountry analysis

“…Many works, in particular, (Bausch, 2019), (Bilan et al, 2019a(Bilan et al, , 2018, (Brychko & Olejarz, 2019), (Munk et al, 2017), (Rudiawarni et al, 2020), (Vasilyeva et al, 2016(Vasilyeva et al, , 2019, (Shvindina, 2019) deal with the study of financial and business cycles based on time series analysis (seasonal, trend, cyclical component separation). Also there are a lot investigations about behavioral aspects in financial inclusion ( (Brychko, 2013), (Churilova et al, 2019), (Cortés-Sánchez & Rivera, 2019), (Djajanto et al, 2019), (Djalilov et al, 2015), (Hadbaa & Boutti, 2019), (Kaasa, 2019), (Katan et al, 2019), (Kolomiiets & Petrushenko, 2017), (Matošková, 2019), (Němcová & Staňková, 2019)) and protection of consumers ( (Piatek, 2018), (Poliakh, 2018), (Rehman, 2020), (Shapovalova et al, 2019), (Mihalčová et al, 2018)).…”

Pillar 3: Does banking regulation support stakeholders’ interest in banks financial and risk profile?

“…The situation is even worse in commercial banks operating in Central and Eastern European countries where their owners are big international financial groups located in developed countries. Evidence is in the paper Munk et al [ 7 ] according to which the relevance of the published Pillar 3 information is not in particular interest of stakeholders, especially information related to mandatory Pillar 3 disclosures. All in all, both from regulatory status and research focus is evident that Pillar 3 framework as a supervisory market discipline tool still does not fulfil its main goal to bring adequate information to key market participants to effectively enhance market discipline.…”