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Abstract

Rebranding is regarded as a necessary form when an organisation faces different problems due to the economic transformations of the society that requires new ways of visibility and decides to assign revitalization techniques to the brand image in order to refresh it. Nowadays, most of the Romanian banking companies went through the rebranding process firstly because they were involved in mergers and acquisitions, and secondly, to expand their target markets and to keep their loyal customers in an ever-changing market environment. This study aims to outline the impact of rebranding on a financial institution in Romania, CEC Bank, the oldest Romanian bank operating on the Romanian market since 1864. Following the 2007 rebranding, the purpose of the bank was to create a competitive commercial bank image. For this bank the rebranding process proved to be successful.

Abstract

Foreign and larger banks in Croatia are generally considered to be more cost efficient compared with domestic and smaller banks. However, those views are often based on data from financial statements that can be misleading due to simultaneous consolidation process on the market and the existence of economies of scale. To contribute to the Croatian banking efficiency literature, we construct a panel of individual bank data for 1994-2014 period and conduct a frontier analysis to calculate bank specific X-efficiency. Our results suggest that efficiency scores depend on the cost definition as domestic and smaller banks are more efficient in managing administrative costs compared with foreign and larger banks but equally efficient in managing total costs. Results indicate that average bank relative efficiency increased on two occasions: one in the late 90s in the period of banking crisis and subsequent “market cleansing” and to a lesser extent in the period marked with financial crisis. Although the differences between bank cost efficiencies seem small, we conclude that the area is worth further research as significant gains in bank earnings could be achieved by increasing efficiency.

Abstract

This paper contributes to the literature by providing recent empirical evidence about the positioning of the capital adequacy ratios (Basel II capital adequacy ratio and leverage ratio as proposed by Basel III) of Turkish banks and the business cycle. As in many emerging countries, the Turkish real sector is highly dependent on the banking loans for financing, and consequently, the macroeconomic system is vulnerable to the supply of bank loans. The results reveal that the Basel II capital adequacy ratio of Turkish banks is procyclical at a statistical significance in normal and crisis times. The results of cyclicality tests of the leverage ratio are mixed: if nominal GDP growth is taken as a business cycle indicator, it is procyclical; however, the credit-to-GDP gap signals countercyclical leverage ratios in normal times. In crisis times, the leverage ratio of the Turkish banking system is determined to be countercyclical.

Abstract

The aim of the paper is to discuss key challenges facing central banks due to evolution of payment systems. The author distinguishes two aspects of the problem. The first one considers the implications of changes in payments for the roles of central banks in national payment systems, namely their role as operators, oversight authorities and catalysts. The second question is how evolution of payment systems influences the nature of central banking. The study is based on the literature review and the analysis and assessment of the information coming from the reports of international institutions. It also uses the results of the author’s survey, which was conducted among central banks of eleven countries.

The research leads to the conclusion that the challenges for central banks concern among others: monitoring and assessing innovations and new mechanisms of payments, information policy in the area of payments, promotion of standardization and interoperability of systems, effective oversight and operational activities of central banks. The changing payments landscape also requires consideration of long-term implications for monetary policy and central banks’ revenues.

Abstract

Competition is one of the factors directly influencing the development of the banking market, the stability of the banking system, and the monetary system as a whole. This article describes the features of banking competition, methods of analysis of banking competition, and an analysis of the current state of competition in the banking market in the Russian Federation. The analysis of banking competition in the Russian Federation was performed using the concentration ratio for the top three companies and the Herfindahl-Hirschman Index. The research concludes with an assessment of the state of competition in the banking market and identification of the barriers to entering the financial services market.

Abstract

CRM (Consumer Relationship Management) is a recent concept. Development and introduction of this concept in the banking operations started in the ‘90s. Due to complex market conditions and the current environment in which banks operate, it is necessary to have a new method for doing business, which will provide quick and efficient recognition of clients. This business concept entirely replaces the traditional operating methods of the bank, where the focus is on clients, their needs, and wishes. The CRM concept enables the bank to respond to the individualized demands of the clients with quality banking products and services. With this, the banks manage to deal with the tough competition and make a profit. The goal of this paper is to examine the importance, development, and implementation of the CRM in the banks. The paper tries to prove the hypothesis: Introduction of the CRM philosophy in the banking operations leads to increased profitability of the bank.

Abstract

Shadow banking is a topical, debated issue on the agenda of national and European macro-prudential regulatory and supervisory authorities. It is generally accepted that shadow banks and the traditional banking system have some core functions in common, such as credit and maturity transformation, and the exposure to similar risks. However, the tight banking regulations and the decreasing trend recorded by interest rates in the post-crisis period create prospects for shadow banking sector growth. Against this background, the present paper aims at investigating the particular impact that shadow banking activity exerts on macroeconomic fundamentals. The analysis covers 15 European Union countries, including Romania, during the period 2008 – 2015, using quarterly data. Shadow banking system is used as a proxy by monetary funds, due to breaks in the series or unbalanced number of observations across selected countries. By employing panel regression, it was found that the shadow banking total assets’ variation is negatively influenced by the GDP growth, short term interest rates, M2/GDP ratio and the ratio of investment funds’ assets in GDP, and positively determined by stock index dynamics and long term interest rates. The findings sustain the literature’s point of view

Abstract

The paper compares the before and after merger position of long term profitability with respect to selected Indian banks for a period of 2003-04 to 2013-2014. The financial performance is evaluated on the basis of various variables. The study found a negative impact of merger on return on equity, return on assets, Net profit ratio, yield on advance and yield on investment. However, variables, namely, the Earnings per Share, Profit per employee and Business per employee have shown positive trend and grown after the merger. It has been observed that after the merger, the Assets, Equity, Investment and advances of all banks increases, but due to underutilization, their respective yield decreases. On a contrary, the business per employee and profit per employee have increased due to optimum utilization of human resources. By applying the Comparative Analysis, the paper also assesses the financial performance of acquiring bank with the banking industry. The Bank of Baroda and Oriental bank of commerce has found decreases in Yield on Advances and yield on investment as compared to average of all banks in the postmerger period. State bank of India & IDBI Bank has higher business per employee and profit per employee as compared to industry average.

Abstract

The subject of this paper is the research of the electronic banking services market in the South Bačka region. The aim of this paper is to systematise the supply of services by commercial banks. On the other hand, the aim of the paper is to evaluate the extent to which citizens use electronic banking services. The research methodology includes the application of the analytical method to the evaluation of the banking sector’s supply of services, the survey method and the statistical processing of data in the empirical analysis of demand. The results of the research showed that there is a rich offer of electronic banking services in the Republic of Serbia and that it is widely accepted.

Abstract

Research purpose. The goal of the current paper is to investigate the impact of internal factors on bank performance. All the performance indicators and explanatory factors have been distinguished from the scientific literature.

Design/methodology/approach. To investigate if there was an effect of the distinguishing factors on Latvian banks’ performance, correlation-regression analysis was applied. To test the developed models’ accuracy, determination coefficient, Durbin–Watson coefficient, variance inflation factor (VIF), Cook’s distance and p-value were computed.

Findings. The findings revealed that there was a relationship between all the dependent and independent factors, except return on assets (ROA) and return on equity (ROE). ROA has a significant positive relationship only with net commission income, and ROE, with net interest margin and net commission income. Moreover, two regression models were developed and showed that total assets and number of automated teller machines (ATMs) affect the profitability, represented by earnings before interest, taxes, depreciation, and amortization (EBIDTA) and bank value.

Originality/value/practical implications. The current findings contribute to the scientific literature dealing with commercial banks’ performance issue and could be used by the banks to develop strategies for maximising profitability.