The Impact of Ownership Concentration, Commissioners on Bank Risk and Profitability: Evidence From Indonesia

Hanafi, Mamduh M.; Santi, Fitri; Muazaroh,

doi:10.14208/eer.2013.03.02.005

Cited by 24 publications

(23 citation statements)

References 29 publications

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“…The use of new standards of supervision is based on a proactive approach to management, so the identifying and permanent monitoring of the risk level must take into account the variability of business models of banks. Table 1: Systematization of scientific and methodological approaches to determining the relationship between risk profile and ownership structure of banks Source: Compiled by the authors based on [1][2][3][4][5][6][7][8][9][10] R. Ayaudi (2016) claims that bank business model enables to determine the vector of its activity by active or passive operations. The business model provides a holistic view of how a bank behaves at the market (retail, corporate, mixed) and determines a bank ability to invest [14].…”

Section: Resultsmentioning

confidence: 99%

“…However, a complex approach to the analysis of the ownership structure of banks, which includes financial intermediaries with private, state and foreign capital, is characteristic of the works by B. Aymen (Aymen, 2014) [3], Y. Dong (Dong et al, 2014) [4] and N. Rahman (Rahman et al, 2013) [5]. In the papers by M. Hanafi (Hanafi et al, 2013) [6] and H. Al-Tamimi ( Al-Tamimi et al, 2013) [7], banks with private capital are classified according to the geographical location of the final be neficiary (domestic and foreign), however state-owned banks are not taken into consideration, which may lead to a deterioration of the quality of the statistical array. Instead, the works by M. ElBannan (2015) [8], Т. García-Marco (García-Marco et al, 2007) [9], S. E. Chun (Chun et al, 2011) [10] are not focused on the specification of private ownership in the part of the separation of banks with foreign capital.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

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Cluster approach to banking supervision with reference to bank risk profile

Коваленко¹,

Kuznetsova²,

Sergeeva³

et al. 2019

EA-XXI

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Introduction. The result of the global financial crisis is the process of transformation of banking supervision aimed at increasing the efficiency of banking risk management and improving mechanisms for dealing with various risk factors. The transformation of the banking surveillance system in the global aspect has defined a set of measures which are constantly monitored by international regulators. The improvement the supervisory methodology is mainly governed by the recommendations of the Basel Committee on Banking Supervision and currently involves introduction of new standards and approaches to regulating and supervising banks based on risk diversification, development of regulations and prompt application of measures to influence banks activities in case of excessive risk build up and increasing threats to the realization of systemic risk, implementation of internal control recommendations at banks aimed at identifying and minimizing the aggregate level of their risk, improvement of analytical rules and procedures and agreeing on intra-bank risk assessment techniques. Purpose. This paper presents the results of the possibility of using the cluster approach in the process of investigating the relationship between the ownership structure and risk profile of Ukrainian banks and, on this basis, improving their supervision.

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Section: Resultsmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

Cluster approach to banking supervision with reference to bank risk profile

Коваленко¹,

Kuznetsova²,

Sergeeva³

et al. 2019

EA-XXI

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“…2. The bank being in state or foreign ownership decreases the risk of default (Micco et al, 2007;Hanafi and Santi, 2013).…”

Section: Analysis Of Previous Experiencementioning

confidence: 99%

Do Higher Interest Rates on Loans and Deposits and Advertising Spending Cuts Forecast Bank Failures? Evidence from Russia

Fomin¹

2019

RJMF

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This study builds a probabilistic model of Russian bank defaults. Microdata from the monthly financial and regulatory statements that Russian banks submit to the Bank of Russia are analysed, covering the period from July 2010 to December 2017. A model incorporating a standard set of reliable predictors of bank defaults is augmented by three novel predictors: the excess of deposit and loan rates over the respective cross-section averages, and the ratio of spending on advertising to the bank's assets. These predictors are statistically significant in logit regressions that forecast bank defaults and improve the forecasting power of the model, although relatively moderately. The too-big-to-fail premise is not supported by the data.

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“…Conversely, Busta & al. (2014); Hanafi & al. (2013) find a positive relationship between the concentration of ownership and the profitability of total assets.…”

Section: Type Of Ownershipmentioning

confidence: 99%

“…Contrary to these results, it was found that in the framework of the Tunisian economy, the ownership structure does not affect performance in the banking sector (Aymen, 2014). In the banking sector, a concentrated ownership structure can help improve risk-taking and profitability (Hanafi & al., 2013). It allows banks to be better capitalized and more liquid (Chalermchatvichien & al., 2014).…”

Section: Type Of Ownershipmentioning

confidence: 99%