New Banks’ Business – Rating Competence for the Real Sector

Open access

Abstract

Background: The global financial crisis has revealed the urgency of changes in the business models of banks around the world. Due to rising regulatory costs and the effects of the low-interest rate phase, the revenue of banking sector is under pressure. Banks have to generate new sources of revenue. A conceivable externalization of bank internal rating data is appropriate. This available knowledge has a potential to generate new business potentials. Objectives: The goal of this paper is to compare the procurement of internal ratings by credit institutions and the supplier evaluation, particularly regarding the assessment of their financial capacity, as well as the identification of potential interfaces. Methods/Approach: The methods used in the research included an example-oriented presentation and an analysis of indicator systems aimed at assessing the financial soundness within the internal rating by credit institutions and the supplier evaluation. Results: Results show the intersections between the two evaluation systems. Conclusions: Despite the determination of evaluation results by their objective function, apparently significant trends of financial (dis)soundness can be recognized as a part of the two evaluating systems. This result provides starting points to initiate the discussion about a possible (partial) externalisation of internal ratings by credit institutions to be used for the supplier evaluation.

1. Arnolds, H., Heege, F., Röh, C., Tussing, W. (2012). Materialwirtschaft und Einkauf, Wiesbaden, Springer Gabler.

2. Bieg, H., Krämer, G., Waschbusch, G. (2011). Bankenaufsicht in Theorie und Praxis, Frankfurt, Frankfurt School Verlag.

3. De Boer, L., Labro, E., Morlacchi, P. (2001), “A Review of Methods supporting Supplier Selection”, European Journal of Purchasing and Supply Management, Vol. 7 No. 2, pp. 75-89.

4. Deloitte (2014), “CFO Insights The value shift: Why CFOs should lead the charge in the Digital Age”, available at: https://www2.deloitte.com/us/en/pages/finance/articles/cfo-insights-digitalage-business-model-innovation-value.html (22 January 2017)

5. Disselkamp, M., Schüller, R. (2004). Lieferantenrating, Wiesbaden, Gabler.

6. Ellram, L. M. (1990), “The Supplier Selection Decision in Strategic Partnerships”, International Journal of Purchasing and Materials Management, Vol. 26 No. 4, pp. 8-14.

7. Ellram, L. M., Cooper, M. C. (2014), “Supply Chain Management: It’s All About the Journey, Not the Destination”, Journal of Supply Chain Management, Vol. 50 No. 1, pp. 8-20.

8. Gleißner, W., Füser, K. (2014). Praxishandbuch Rating und Finanzierung, München, Vahlen.

9. Hartmann-Wendels, T. (2013), „Basel III - Auswirkungen auf Banken und Finanzsystem“ (Basel III - Impacts on banks and the financial system), Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung, Vol. 67 No. 1, pp. 72-96.

10. Hirakubo, N., Kublin, M. (1998), “The relative importance of supplier selection criteria: the case of electronic components procurement in Japan”, International Journal of Purchasing and Materials Management, Vol. 34 No. 1, pp. 19-24.

11. Kraljic, P. (1983), “Purchasing must become Supply Management”, Harvard Business Review, Vol. 61 No. 5, pp. 109-117.

12. Kudrna, Z. (2012), „Cross-Border Resolution of failed Banks in the European Union after the Crisis: Business as Usual“, Journal of Common Market Solution, Vol. 50 No. 2, pp. 283-299.

13. Maisch, M. (2014), „Die Stunde null für die Banken“, Handelsblatt, 08.09.2014, pp. 26.

14. McKinsey & Company (2016), “McKinsey-Studie: Banken vor grundlegendem Wandel”, available at: https://www.mckinsey.de/files/160407_pm_bankenmarkt_deutschland.pdf (20 October 2016)

15. Meeh-Bunse, G., Hermeling, A., Schomaker, S. (2014), “Ein Europäisches Netzwerk kleiner Ratingagenturen - Eine mögliche Alternative zur gescheiterten europäischen Ratingagentur“ (A European network of small rating agencies - A possible alternative to the failed European rating agency), Wertpapier- Mitteilungen, Vol. 31, pp. 1464-1470.

16. Meeh-Bunse, G., Sattler, W. (2012), „Die Rating-Genossenschaft - ein Vorschlag auf der Suche nach einer sinnvollen Ergänzung des Ratingmarkts“ (The Rating Cooperative - a proposal in the search for a reasonable supplement to the rating market), Der Betrieb, Vol. 26-27, pp. 1449-1454.

17. Min, H. (1994), “International Supplier Selection: A Multi-Attribute Utility Approach”, International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 5, pp. 24-33.

18. Schneck, O. (2006), “Lieferantenrating in der Automobilindustrie” (Supplier Rating in the automotive industry), Kredit und Rating Praxis, Vol. 4, pp. 6-9.

19. Simpson, P., Siguaw, J., White, S. (2002), “Measuring the Performance of Suppliers: An Analysis of Evaluation Processes”, The Journal of Supply Chain Management, Vol. 38 No. 4, pp. 29-41.

20. The Economist (2015), "Mixing commerce and banking - Risky business", 18 April 2015, p. 57.

21. Vonderembse, M. A., Tracey, M. (1999), “The Impact of Supplier Selection Criteria and Supplier Involvement on Manufacturing Performance”, The Journal of Supply Chain Management: a Global Review of Purchasing and Supply, Vol. 35 No. 2, pp. 33-39.

22. Weber, C., Current J., Benton, W. (1991), “Vendor Selection Criteria and Methods”, European Journal of Operational Research, Vol. 50 No. 1, pp. 2-18.

23. Wöhler, J. (2015), “Auswirkungen der Regulierung auf Bank-Geschäftsmodelle”, in Everling, O.,Goedeckemeyer, K. (Eds.), Bankenrating, Springer Gabler, Wiesbaden, pp. 55-72.

Business Systems Research Journal

The Journal of Society for Advancing Innovation and Research in Economy

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 118 118 17
PDF Downloads 56 56 16