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This study examines the role of asset liquidity in Western European banks’ credit rating downgrades and upgrades over the 2005–2017 period. The results suggest that changes in bank credit ratings have been more favorable for banks that have a liquid asset portfolio. Furthermore, asset liquidity has a stronger effect on the credit rating of banks that already have an illiquid asset portfolio. In contrast, the effect is significantly smaller or nonexistent for the most liquid banks. These results imply that the new liquidity regulation introduced by the Basel III requirements will improve the stability and hence decrease the fragility of the European banking sector. Furthermore, the benefits are highest for the most illiquid banks. In addition, the sovereign credit rating pass-through effect is strongest for illiquid banks.
This paper examines the association between bank credit ratings and corporate social responsibility (CSR). The sample includes large publicly listed banks in the United States during fiscal years 2000–2016. Our findings indicate that CSR policies positively affect banks’ credit ratings. We further test each dimension of the MSCI KLD database’s ESG ratings and find that the CSR components measuring diversity and employee relations are particularly relevant in the credit rating context.
Banks and credit unions have become very active in the provision of financial education initiatives. There has been some skepticism regarding how genuine these initiatives are, given that financial institutions may benefit from customer misperceptions. However, financial institutions can also signal their trustworthiness with these campaigns, which may also be an important part of their social responsibility programs. Financial education also has implications for relationship banking. A bank's mission might also be a significant determinant of the type of financial education initiatives in which it engages. In this article, we review the various pros and cons of the involvement of financial institutions in financial education and try to understand why financial institutions engage in financial education. We also provide examples of financial education initiatives from Europe and the United States.
Tässä pro gradu -työssä tutkitaan, miten pankit ovat sopeutuneet tiukempiin pääomavaatimuksiin ja miten pääoman taso ja rakenne vaikuttavat pankkien tulokseen euroalueella. Empiirisessä tutkimuksessa käytetään laajaa, 308 euroalueen pankkia kattavaa aineistoa ajanjaksolta 2005-2020. Pääomarakennetta tarkastellaan sekä kokonaispääomatasona suhteessa riskipainotettuihin varoihin, että jaettuna pankkikohtaiseen pääomavaatimukseen ja sen ylittävään, vapaaehtoiseen puskuriin. Pankin suorituskykyä taas mitataan tuotoilla suhteutettuna sekä kokonaisvaroihin että riskipainotettuihin varoihin. Empiirisen tutkimuksen tulosten perusteella kokonaispääoman tasolla on positiivinen vaikutus suuriin pankkeihin, kun taas pieniin ja keskisuuriin vaikutusta ei havaita. Pääomavaatimukset taas vaikuttavat positiivisesti sekä pienten että suurten pankkien suorituskykyyn, mutta keskisuuriin pankkeihin vaikutus on huomattavan negatiivinen. Vapaaehtoinen pääoma vaikuttaa positiivisesti pienten ja suurten pankkien tuottoihin. Kaiken kaikkiaan pääoman positiivinen vaikutus suorituskykyyn korostuu riskikorjatun tuoton osalta, joten voidaan päätellä, että pääomatason nousu parantaa pankkien riskinsietokykyä liiketoiminnassa. Pääomatason ja minimipääomavaatimusten vaikutus keskikokoisiin pankkeihin eroaa selvästi pienistä ja isoista pankeista, ja jatkotutkimuksen kannalta olisi mielenkiintoista tutkia, mitkä tekijät keskikokoisten pankkien ryhmässä vaikuttavat tähän. Lisäksi, kontrollimuuttujien avulla havaitaan, että erikokoisten pankkien suorituskyky reagoi toisistaan poikkeavalla tavalla muutoksiin rahapolitiikassa ja makrotaloudellisessa ympäristössä.
Käyttämällä 45 eurooppalaisen pankin tietoja vuosilta 2000-2015, tämä pro gradu -tutkielma käsittelee talouspoliittisen epävarmuuden (TPE) vaikutuksia pankkien luottoriskeihin luottoluokituksilla mitattuna. Paneelidatasta saadut tulokset osoittavat merkittävän negatiivisen suhteen TPE:n ja euroalueen sisäisten luottoluokitusten välillä. Suhteen arvioidaan olevan korkeampi markkinaperusteisissa maissa verrattuna pankkipohjaisiin maihin. Jatkotutkimukset viittaavat myös siihen, että Euroopassa kasvanut talouspoliittinen epävarmuus ei vaikuta pankkien luottoluokituksiin EU:n ulkopuolella ja kyseiset pankit voivat hyötyä myös tästä EU:ssa lisääntyvästä epävarmuudesta. Lisäksi havainnot viittaavat siihen, että maissa, joissa on käytössä oma valuutta, pankit ovat vähemmän alttiita epävarmuuden muutoksista johtuville vaikutuksille. Tulokset myös osoittavat, että pankit voivat vähentää TPE:n kielteisiä vaikutuksia luottoluokituksiin lisäämällä pääomaa tai vähentämällä lainojen määrää.
Luottamus luottoluokittajien kykyyn arvioida pankkien vakavaraisuutta mureni finanssikriisin jälkeen. Pankkeja, joita oli arvioitu vakavaraisiksi ja vähäriskisiksi toimijoiksi kaatui tai ne joutuivat turvautumaan erilaisiin tukipaketteihin toimintansa jatkamiseksi. Epäjohdonmukaisuus pankeille asetettujen luottoluokitusten ja todellisen vakavaraisuuden välillä asetti luottoluokittajat kritiikin kohteeksi. Tämän tutkimuksen tarkoituksena on selvittää taloudellisia indikaattoreita ja muita ominaisuuksia, jotka vaikuttavat pankin luottoluokitukseen. Tutkimus pyrkii luomaan kokonaiskuvan luottoluokituksen muodostamiseen liittyvistä prosesseista keskittyen luottotappiovarausten vaikutukseen. Luottotappiot vähentävät pankin pääomaa, joka on yleisesti luottoluokittajien keskuudessa tärkein tekijä luottoluokitusta muodostettaessa. Tästä syystä voidaan olettaa, että luottotappioiden ja luottoluokituksen välillä on yhteys. Tutkimuksen tarkoituksena on hahmottaa tämän yhteyden laajuutta. Tämä pro gradu -tutkielma hyödyntää empiiristä tutkimusta käyttäen Länsi-Euroopan pankkien taseen ja tuloslaskelman tunnuslukuja. Tutkimuksessa hyödynnetään luotto-luokittajan Fitch Ratings -luottoluokituksia. Tarkoituksena on selvittää, mitä muutoksia luottoluokituksessa tapahtuu, kun pankki kärsii luottotappioita. Luottotappioiden mittaamisessa hyödynnetään pankkien asettamia luottotappiovarauksia, jotka auttavat hahmottamaan mahdolliset tulevat tai jo toteutuneet luottotappiot. Tulosten mukaan luottotappiovarausten ja luottoluokituksen välillä on negatiivinen yhteys. Tämä yhteys ei kuitenkaan ole lineaarinen, sillä vaikutuksen laajuus on riippuvainen luottotappiovarausten määrästä. Joissakin tapauksissa vaikutus on positiivinen. Tämä tutkimus antaa syvempää tietoa luottotappiovarausten optimointiin sekä pankkien sääntelyn vaikutuksiin luottoluokituksen muodostamiseen ja käytäntöihin liittyen. Tutkimuksen tarkoituksena on antaa tarkempi käsitys indikaattoreista, jotka vaikuttavat pankkien luottoluokituksen muutoksiin keskittyen luottotappiovarausten vaikutuksiin sekä antaa vakaa perusta jatkotutkimukselle.
Rahoitusmarkkinoiden ja -instituutioiden viimeaikainen kehitys asettaa entistä suuremmat vaatimukset kuluttajan talousosaamiselle ja talouslukutaidolle. Viime aikoina talouslukutaito onkin alkanut saamaan huomiota niin politiikassa kuin akateemisessa tutkimuksessakin. Kaikesta huolimatta tutkimus talouslukutaidon vaikutuksesta yhteen kuluttajan merkittävimmistä taloudellisista päätöksistä, asuntolainan valintaan, on edelleen vähäistä. Tämä pro gradu -tutkielma käsittelee talouslukutaidon vaikutuksia asuntolainapankin ja -tarjouksen valintaan. Tutkielmassa esitellään neljä limited dependent variable -malliperheen tilastollista mallia käyttäen suomalaisilta asuntovelallisilta kerättyä kyselytytkimusaineistoa. Mallien avulla selitetään talouslukutaidon vaikutuksia kuluttajan todennäköisyyteen kilpailuttaa asuntolainansa, sekä sitä, kuinka merkittäväksi tekijäksi hakija kokee erilaiset lainatarjouksen ominaisuudet ja millä perusteella vastaaja lopulta päätyi valitsemaan pankkinsa. Empiiristen tulosten perusteella talouslukutaitoiset asuntovelalliset kykenevät paremmin tulkitsemaan lainatarjoukseen liittyviä rahallisia etuja ja ehtoja, ja päätyvät täten valitsemaan asuntolainapankkinsa edullisimman tarjouksen perusteella. Heikomman talouslukutaidon omaavat asuntovelalliset taas antavat enemmän painoarvoa muille pankin tarjoamille rahoituspalveluille ja seikoille, jotka eivät suoraan liity haettavan asuntolainan ehtoihin. Heikomman talousosaamisen omaavat asuntovelalliset siis todennäköisesti arvostavat rahoituspalveluiden keskittämisen tuomaa helppoutta. Tutkielmassa annetaan ehdotuksia, kuinka suomalaiset pankit pystyisivät paremmin auttamaan heikon talouslukutaidon omaavia kuluttajia tekemään rationaalisempia päätöksiä asuntolainaa valitessaan. Kaiken keskiössä on vastuullinen ja selkeä viestintä.
Capital ratio requirements have important impact on bank lending activities. This thesis studies and compares the relationship between capital ratio and lending growth, practice in loan loss provisions and changes in fee income ratio among the three geographical areas. The results suggest that, in general, Tier 1 capital plays a positive role in supporting lending growth, and Tier 2 capital does not. The effect of Tier 1 capital is statistically significant for small size banks in all three areas. When lending grows in economic upswings, US and European banks tend to make lower loan loss provisions while Asian banks tend to reserve more. Increase in fee income ratio associated with decrease in lending is found among banks in the US and Europe, who experience sharp decline in lending. This negative relation is not found for the case of Asian banks.
This study uses a large panel dataset of Western European banks to examine the determinants of bank funding stability. Banks are divided into three categories by bank ownership type; the ownership types in this study are commercial banks, cooperative banks and savings banks. Three sources of stable bank funding are investigated: customer deposits, equity, and long-term liabilities. Furthermore, the sum of these funding components is used as a proxy variable for a bank's total available stable funding (ASF). A special focus is on the temporal evolution of these funding types. The regression results show that commercial banks’ funding became much more stable in the period 2005–2017. However, that funding remains, on average, less stable than does cooperative and savings banks’ funding. In addition, funding stability has remained at the pre-crisis level in cooperative and savings banks, despite a steep dip in cooperative banks’ ASF during the sovereign debt crisis. Furthermore, banks substantially decreased financing from long-term liabilities after the financial crisis, replacing it with customer deposits and equity.
Laaja-alainen digitaalinen muutos on vaatinut pankeilta uudistumista digitaalisen transformaation avulla. Digitaalinen transformaatio viittaa informaatioteknologian (IT) aiheuttamaan organisaatiolaajuiseen muutokseen. Tietohallinto (engl. IT governance) käsittelee IT:hen liittyvien roolien ja prosessien vastuunjakoa ja johtamista. Kontingenssiteorian mukaan jokaisella yrityksellä on organisaatiokohtaisia tekijöitä, joiden arviointi mahdollistaa tietohallinnon mukauttamista organisaation omaan kontekstiin. COBIT 2019 on tietohallinnon viitekehys, jonka avulla voidaan muodostaa nämä organisaatiokohtaiset tekijät. Viitekehyksessä suunnittelutekijät (engl. design factors) ovat työkalu tietohallinnon organisaatiokohtaiseen mukauttamiseen. Tässä tutkielmassa viitekehyksen ulkoisesti arvioitavat suunnittelutekijät kohdistettiin isoihin suomalaisiin pankkeihin seuraavin tuloksin. Kohderyhmän tietoturvauhat (engl. threat landscape) ovat korkeat. Pankit ovat finanssijärjestelmän keskiössä, jonka takia ne ovat olleet useiden uhkien ja toimijoiden tietoturvahyökkäysten kohteena. Kohderyhmässä IT:n rooli (engl. role of IT) on strateginen. Tämä tarkoittaa, että pankit tekevät liiketoimintaa IT:n avulla sekä käyttävät sitä innovaatioon. Kohderyhmän IT:n hankintamalli (engl. IT sourcing model) on hybridi eli pankit hyödyntävät sisäisiä ja ulkoisia kyvykkyyksiä IT:ssä. Kohderyhmän pankit ovat seuraajia teknologian käyttöönottostrategiassa (engl. technology adoption strategy), sillä ne käyttöön ottavat teknologioita vasta, kun niiden toimivuus on todistettu.
This paper studies bank failures in EU-12 countries before and after the financial crisis of 2007-2008. Logit regression is used to examine how bank specific and macroeconomic factors affect a probability of a bank failure between 2006 and 2012. A behavior of bank specific factors four years before a bank failure is further studied in order to draw conclusions how the variables change over time. Lastly, a number of predicted bank failures before and after 2012 is calculated to see whether the number is decreased since the crisis. The results show that both bank specific and macroeconomic factors are important when forecasting bank failures. Especially size is a highly significant factor and contrast to the "too-big-to-fail", an increase in size increases a probability of a bank failure. Further examining of bank specific variables show that they behave differently over time and certain factors tend to change significantly several years before a failure whereas some change just before a failure. Lastly, even though the analysis shows that a number of predicted bank failures has decreased after the financial crisis, it is not clear whether it is a result of changes in bank regulation and supervision.
The oversight of this project falls under Tsehay Bank SC, established on July 23, 2022. Given the novelty of the bank in the industry, the primary goal of this study was to examine the factors impacting deposit mobilization in Ethiopia and their ramifications for banks aspiring to establish a competitive position in the financial sector. The outcomes of this research would guide the overseeing commissioner company in formulating an efficient deposit mobilization strategy. In this thesis, quantitative research methodologies were applied to analyze both primary and secondary data sources. Descriptive analysis, specifically employing a frequency measure, was utilized to draw conclusions about data distribution. Additionally, the thesis employed ordinary least square regression analysis to explore the relationship between dependent and independent variables, providing insights into the extent of this relationship. The study identified nine explanatory variables influencing the mobilization of deposits by banks. Secondary data for these variables were collected from financial statements of private commercial banks, the National Bank of Ethiopia, the Central Statistical Authority, and other pertinent sources. Additionally, primary data were gathered through questionnaires as part of a survey conducted in a specific geographic area and banks, covering the period from 2015/16 to 2021/22. Regression analysis revealed that banks' return on assets (profitability) has a positive and significant effect on deposit mobilization in Ethiopia. Deposit interest rate, branch expansion, customer relationship management, GDP growth rate, and population growth rate all have a positive and insignificant effect on bank deposit mobilization in Ethiopia. Loan to deposit ratio, inflation rate, and conflict and political instability have a negative and significant impact on deposit mobilization of banks in Ethiopia. In general, four of the nine findings from microeconomic variables and macroeconomic variables have a significant impact on the deposit mobilization of banks in Ethiopia.
This study investigates the effects of real estate regulatory policies on the real estate risks to banks in China. The study shows that real estate control policies issued by the policy makers in China cannot constrain the risks of the real estate market to banks. Real estate stimulating policies, however, could raise the risks of the real estate market to banks, which mainly results from the effects of tax-related stimulating policies. The study also shows that real estate control policies affect the discount rate risks of the real estate firms to banks, while both the real estate control policies and the real estate stimulating policies show some effects on the overall risks of the real estate firms to banks.
As one of characteristics reflecting the exceptionally easing monetary policy of the ECB since the financial crisis of 2008, the deposit facility rate (DFR) was first pushed down to the zero-lower bound. Then, it entered the negative zone in June 2014. To investigate the pass-through of this policy rate to the banking markets, I use a data set of 19 eurozone countries from 2009-2019 to examine whether the DFR successfully lowers bank reserves, conditional on their business model being proxied by net interest margin and wholesale funding ratio. If bank reserves decline in response to the DFR reduction, it is important to reveal whether the banks use this additional liquidity for lending expansion or investments on higher-yield liquid assets. I find that banks withhold more reserves in response to a decrease of DFR and even behave more aggressively under the negative era after 2014, which is a plausible reaction under the high overall uncertainty, that has resulted from the negative interest rate policy and low-for-long period. Although bank lending has increased after 2014, it seems to have been caused more by unconventional tools other than the negative interest rate policy or main refinancing operations. Additionally, the country effect creates heterogeneity on loan supply changes as a response to the DFR change. Banks in the stressed countries generally have more incentives towards increasing lending, while banks in the non-stressed countries show a preference in liquidity withholding.
Eurooppalaiset pankit ovat käyneet läpi hyvin erikoisia olosuhteita viime vuosina. Maailmanlaajuisen finanssikriisin jälkeen korkotasot alkoivat laskea ympäri maailmaa. Parantaakseen heikkoja taloudellisia olosuhteita sekä pyrkimyksenä saavuttaa inflaatio tavoitteensa, keskuspankit ovat ottaneet käyttöönsä hyvin epätavallisia rahapolitiikan keinoja Euroopassa. Euroopan keskuspankki sekä muun muassa Ruotsin ja Tanskan keskuspankit ovat käyttäneet negatiivisia korkoja osana heidän rahapolitiikan strategioitaan stimuloidakseen talouskasvua ja ylläpitääkseen hintavakautta. Tämä politiikka on johtanut nimelliskorkojen laskemiseen lähelle nollaa ja joissain tapauksissa jopa negatiiviselle tasolle. Tämä tutkimus selvittää negatiivisen korkotason vaikutuksia kaupallisten pankkien kannattavuuteen Saksan, Ruotsin ja Tanskan pankeissa. Tutkimuksen keskeisenä tavoitteena on selvittää, onko (lähes) negatiivisella nimelliskorolla sekä pankkien kannattavuuden mittareilla (korkokate ja oman pääoman tuotto) merkittävää yhteyttä. Analyysi koostuu 50 pankin aineistosta vuosilta 2011-2021. Tulokset viittaava, että negatiiviset nimelliskorot alentavat pankkien korkokatetta, joka on pankkien kannattavuuden pääasiallinen lähde.
This study examines the impacts of the sovereign risk premium on bank profitability of 154 Eurozone banks between 2005 and 2019, using the differenced generalized method of moments. Contrary to previous literature results, banks' net interest margin actually benefits from the low and negative rate policy. Meanwhile, the overall profitability measures experience contraction due to the same effect. This puzzle can be explained by the shift towards the low-cost wholesale-based funding of banks in the Euro area. Simultaneously, such banks set aside more loan loss provisions because of the increment in overall risk of the economy. These results open up new research direction on how much interbank funding has been raised to facilitate new loans and how much of it has been for liquidity requirements. In the same manner, further research should be carried to see whether the benefits from the low-priced interbank markets funding are offset by extra costs caused by a higher ratio of loan loss provisions.
Globaali finanssikriisi sai alkunsa Yhdysvalloissa 2007 asuntomarkkinoiden hintojen romahtaessa. Rahoituslaitokset huomasivat taseissaan oleviensa asuntolainavakuudellisten arvopapereiden arvojen olevan nopeasti huomattavasti oletettua alhaisempia. Pankkien kannattavuus kääntyi jyrkkään laskuun. Lyhytaikainen likviditeetti ehtyi riskien kasvaessa ja luottamus arvopaperien vakuuksiin heikkeni. Rahoituslaitokset joutuivat turvautumaan mon-imuotoisempiin rahoitusratkaisuihin. Rahoitusinstrumenttien monimutkaiset rakenteet ja liiallinen arvopaperistaminen levittivät kriisin nopeasti koko pankkijärjestelmään. Tämä aiheutti paniikin, joka lamautti rahoitusmarkkinoiden tehokkaan toiminnan. Yksityiset ja julkiset instituutiot pyrkivät aktiivisesti ennustamaan ja ennakoimaan tulevia kriisejä ja markkinoiden muutoksille herkkiä ennakoivia indikaattoreita käyttämällä ekonometrisia mallinnuk-sia. Ennen finanssikriisiä Yhdysvalloissa ennakoivat indikaattorit ja mallinnukset kuitenkin epäonnistuivat ennustamaan kriisin alun. Tämän tutkimuksen tarkoituksena on analysoida, mikäli finanssikriisin alku olisi voitu ennakoida pankkijärjestelmän arvopaperistettujen ja lyhytaikaisen rahoituksen avulla. Päämääränä on selvittää, oliko asuntolainavakuudellisilla arvopapereilla, takaisinostosopimuksilla sekä yhdysvaltain keskuspankin liikkeellelaskemien pankkien välisten markkinoiden arvopapereilla merkittävä vaikutus pankkien kannattavuuteen ja pääoman tuottoasteeseen. Tärkeänä kysymyksenä on, toimivatko kyseiset muuttujat kriisejä ennakoivina indikaattoreina. Tutkimuksen aineisto sisältää Worldscope -tietokannan yhdysvaltalaisia pankkeja vuosilta 2004-2008. Tutkimusmenetelminä ovat lineaarinen sekä kiinteiden menetelmien -regressiomalli. Yleisesti kyseisillä muuttujilla on akateemisessa kirjallisuudessa nähty olevan suora vaikutus finanssikriisin alkuun. Tämän tutkimuksen tulokset ovat kuitenkin poikkeavia. Lineaarinen regressiomalli löytää ainoastaan merkittävän positiivisen korrelaation takaisinostosopimusten ja pankkien pääoman tuottoasteen väliltä. Tämä viittaa siihen, että takasisinostosopimusten käyttö ennakoivina indikaattoreina on soveltuvaa vain, jos sopimukset kärsivät nopeasta määrän laskusta tai romahduksesta. Kiinteiden menetelmien -malli puolestaan ei löydä minkäänlaisia merkittäviä korrelaatioita. Tässä tulkintana on, että pankkikohtaiset ajassa muuttumattomat taustalla olevat ominaisuudet olivat todelliset perusteelliset syyt kriisin vakavuudelle. Vastaavasti myös arvopapereiden taustalla olevat riskit vaikuttivat merkittävästi kriisin syntyyn ja pankkien kannattavuuden romahdukseen. Tulosten perusteella tutkitut muuttujat eivät itsessään toimi hyvinä ennakoivina indikaattoreina, ja käytetyissä ekonometrisissa malleissa tulisi vahvasti huomioida taustalla olevat muuttumattomat ominaisuudet ja riskit. Tällöin kriisien ennakoiminen pankkien arvopapereiden pohjalta tuottaisi tehokkaampia ja käyttökelpoisisempia ennusteita.
The main objective of this thesis is to create an elementary implementation of an online banking application, which are heavily used by present-day banking organizations world-wide. By studying examples from real world running instances of e-banking application, this thesis tried to achieve the characteristics and functionalities of a typical web based online banking software. Using popular frameworks and technologies in the web development field such as Typescript, React, Express, PostgreSQL and many more the project will combine common features of a web applications, such as log-in-logout registration, user-based data management and interactions with basic financial solutions that the normal user can expect from a real-world banking website such as view simulated financial data about account, conducting transactions and view bank statements. The application will be deployed onto the cloud and can be tested by anyone that has access to the website address, approximately under one-year time frame. This will be the first version of the application, acting as a practical argument for topic of this paper.
Trade-Based Money Laundering (TBML) yhtenä merkittävimpänä rahanpesu mekanismina on herättänyt viime vuosien aikana monien päättäjien, viranomaisten sekä pankkisektorin kiinnostuksen miten rikolliset pyrkivät laittomasti hyödyntämään kansainvälistä kauppaverkostoa omien etujensa tavoitteluun. Huomioiden miten rahanpesun pohjimmaisena tarkoituksena on laittomien varojen alkuperän häivyttäminen ja niiden saaminen takaisin normaaliin talouden kiertoon, kansainvälisen kaupan laaja transaktioiden verkosto tarjoaa houkuttelevan peitteen rikollisten toiminnalle. Pankeilla on merkittävinä tilisiirtojen ja kauppa transaktioiden toteuttajina laaja pääsy asiakastietoihin sekä kauppatietoihin, jonka vuoksi pankkien mahdollisuudet tunnistaa asiakkaiden epäilyttävät liiketoimet ovat lisänneet pankkien roolia TBML:n estämisessä. Tiukentuvan rahanpesu regulaation aikakaudella pankkien velvollisuudet TBML:n sekä muiden rahanpesu mekanismien estäjänä odotetaan korostuvan. Tämän tutkimuksen tarkoituksena oli jakaa pankki sektorin sisällä tietoa, miten pankit voivat vastata TBML:n kasvavaan uhkaan. Viimeisten vuosien aikana julkisuuteen on levinnyt useita rahanpesuun liittyviä uutisia, joissa kansainvälisesti operoivat pankit ovat epäonnistuneet laittomien rahasiirtojen estämisessä ja näin ollen laiminlyöneet rahanpesusäännösten noudattamista. Rahanpesijän luonteeseen sisältyy olennaisena osana muokkautuminen olemassa olevaan regulaatioon sekä olosuhteisiin, jonka vuoksi pankkien tehtävänä on jatkuvasti päivittää tietämystä uusien rahanpesu mekanismien osalta ja arvioida parhaita käytänteitä rahanpesun estämiseen. Tutkimuksen tavoitteena on lisätä kaikkien pankkien ymmärrystä tähän yhteiseen ongelmaan ja siihen, miten TBML riskejä saadaan kontrolloitua. Tutkimuksen toteutustapana oli kerätä eri rahanpesun estämiseen liittyvistä lähteistä TBML riski indikaattoreita, jonka jälkeen pankkeja pyydettiin tutkimuskyselyssä kuvaamaan tämän hetken parhaita käytänteitä, miten pankit kontrolloivat kyseisiä riski indikaattoreita. Tutkimuksen aikana korostui miten keskeinen rooli Asiakkaan Tuntemisella (KYC) on potentiaalisten epäilyttävien liiketoimien tunnistamisessa, ja kuinka riskiperusteisesta lähestymistavasta on muodostunut tärkein ohjesääntö rahanpesun estämisen kontrollien laatimisessa. Pankkien vastaustenkin perusteella monet TBML kontrollit keskittyvät digitaalisten ratkaisujen kehittämiseen pankkijärjestelmän sisällä, joiden avulla suuresta tilisiirtojen ja kaupan rahoituksen datan määrästä on mahdollista tunnistaa potentiaaliset epäilyttävät tapahtumat. Digitaalisten ratkaisujen kehittämisen lisäksi tutkimus osoitti, miten tärkeää on jakaa tietoja TBML mekanismeista kaikkien liiketoiminta yksiköiden välillä korostaen roolia asiakasvastuullisten ja transaktioiden monitoroinnista vastaavien yksiköiden kohdalla. Jatkuvasti kehittyvän rahanpesun estämisen regulaation odotetaan siirtävän rikollisia entistä sofistikoituneempiin rahanpesu operaatioihin, jonka vuoksi pankeilla on kasvava tarve kerätä tietoa TBML mekanismeista ja etenkin siitä, miten niitä voidaan kontrolloida.
The recent financial crisis and sovereign debt crisis in Europe have highlighted the need for systemic risk measures for macroprudential policy purposes. This thesis im-plemented three frameworks proposed by Billio et al. (2012) and Diebold & Yilmaz (2009, 2012, 2014) to investigate the interconnectedness of the European banking sys-tem as measures of systemic risk. The frameworks are applied using market data of a sample of 28 largest banks in Europe from 2001 to 2018. The empirical results show that systemic risk measures based on market data can identify periods of financial dis-tress in the market. Besides, I also find that the European banking system in overall has become more connected, especially during the sovereign debt crisis. Different frameworks seem to depict quite different characteristics of the system connectedness. Moreover, the ranking of banks according to their contribution to the aggregate con-nectedness is not precisely consistent within itself over different periods. Nor is the banks’ ranking consistent among different frameworks. The forecast error variance de-composition framework in Diebold & Yilmaz (2009, 2012, 2014) has the best out of sample performance in terms of identifying banks with the biggest losses during the crisis period. In consistent with previous literature, I do not find a strong relationship between the connectedness measures and other measures such as MES and Delta-CoVaR. Therefore, the results call for a more systematic view of systemic risk at multi-ple aspects.
Ilmastonmuutos on aikamme merkittävin kriisi, ja sen ratkaiseminen edellyttää kaikkien alojen yhteistä muutosta. Vuonna 2015 allekirjoitettu Pariisin ilmastosopimus oli käännekohta ilmastonmuutoksen hillitsemisessä. Sen tavoitteena on pysäyttää lämpeneminen 1,5 asteeseen. Ilmastosopimus määrittää pankkien vastuun rahoituksen ohjaamisesta vähähiilisiin hankkeisiin. Pankeilla on sekä ulkoisena motiivina yhteisten tavoitteiden saavuttaminen, että sisäisenä motiivina ilmastoon liittyvien rahoitusriskien hallinta. Tässä pro gradu -tutkielmassa tarkastelen, miten pankit voivat osaltaan ehkäistä ilmaston lämpenemistä ja vaikuttaako mahdollinen viherpesu negatiivisesti talouden vihreään siirtymään. Tutkimuksessa hyödynnetään systemaattista kirjallisuuskatsausta. Tutkimusaineisto on kerätty useista eri tietokannoista, kuten Scopuksesta, ja lopulliseen tutkimusotokseen on sisällytetty 22 artikkelia vuosilta 2010–2022. Keskeiset havainnot ovat teemoitettu ja analysoitu narratiivista synteesimenetelmää hyödyntäen. Tulosten valossa pankkitoiminta voi ehkäistä ilmastonmuutosta säätelemällä rahoitusta. Tutkimuskentällä ei kuitenkaan ole konsensusta siitä, pitäisikö pankkien mandaatteja laajentaa kattamaan ilmastopolitiikkaa. Ratkaisuna ilmastokriisiin esitetään ilmastopolitiikan ja rahoitussääntelyn välineiden käyttämistä yhdessä finanssipolitiikan työkalujen kanssa. Lyhyen aikavälin ratkaisuksi esitetään nykyisten keskuspankkien työkalujen vihertämistä. Pankkitoiminnan viherpesua käsittelevää tutkimusta on tehty vähän. Pankkitoiminnassa esiintyy viherpesua niin suoraan kuin epäsuorasti puuttuvien taksonomian ja tiedonantovaatimusten takia. Pankeilla on haasteita arvioida rahoittamiensa kohteiden vaikutusta ilmastonmuutokseen, sillä päätöksentekoon liittyvä informaatio on asymmetrista. Nykyiset rahoitustoimet ilmastonmuutosta kiihdyttäviin kohteisiin ja epäselvät ilmastositoumukset vaikuttavat kielteisesti talouden vihreään siirtymään.
Negative money market interest rates have been a defining feature of European economy during the years 2015-2022, which can be called as a negative interest rate era. On top of the aggregate economy, this era has also influenced the banking sector and the banking business. The topic of this master’s thesis is to find out the most significant variables that have influenced on the profitability of banking sector. Variables defining the profitability are especially researched through the perspective of bank’s size, ownership structure and the locale of the bank meaning if it situates in the Euro area or outside of it. One key standpoint of this thesis is the effect of loan portfolio quality to the bank’s profitability. This thesis was conducted as quantitative research using various panel econometric techniques. The data included over 560 banks from 35 different European countries. Three different variables were used to measure the profitability: return on average assets (ROAA), return on risk weighted assets (RoRWA) and net interest margin (NIM). The main result involving the effect of the loan portfolio quality indicate that for the shareholder owned banks in the Euro area and co-operative and savings banks outside the Euro area it could even be beneficial to increase the loan portfolio riskiness, as for these banks the increasing share of non-performing loans is recorded to have positive effect on ROAA. One explanation to this is that these banks can match the recognized risk with appropriate pricing. However, the increase in the riskiness of the loan portfolio could not be suggested for the shareholder owned banks outside the Euro area as for those banks the perceived profitability is worsened though increased share of non-performing loans. The results indicate that banks with different characteristics are affected by different independent variables. It is also recorded, that the same independent variable can cause an impact that is negative for some banks and positive to another. As an example for variation within the results, the faster growth speed of a shareholder owned bank is recorded to cause harm on NIM but benefit the broader profitability measure ROAA. Because of these notions it is important that each bank makes the practical decisions through their own perspective, rather than solely relying on theory or following the example set by the other banks.
The interest rate has a wide impact in the financial world, the center of which is banks and monetary policy. A rise in interest rates has generally been found to have a negative effect on stock returns, but there have been different research results over the course of the stock market history. Especially during various crises, such as the 2008 financial crisis and during Covid-19, central banks have had to take measures to calm the situation, in which case interest rate changes are often part of monetary policy, affecting particularly banks. This study examines banks' operations and especially, examines the effects of interest rate changes on bank stocks returns. The focus is on US banks of different asset sizes to gain relevant information extensively. This study examines the period after the financial crisis to maximize the evidence and reliability.
Bangladesh, a developing country with a large number of mobile phone users, has been utilizing mo bile networks for banking services for a long time. Mobile financial services are rapidly expanding in developing nations, with bKash being the most widely used. bKash is the most widely used Mobile Financial Service (MFS) in Bangladesh. Like other developing countries, people in Bangladesh mi grate to cities for work to support their families. The need for easy and convenient money transfers for workers in cities led to the invention of "development." bKash expanded financial inclusion by introducing mobile banking to the unbanked population, ad dressing the majority's difficulties in accessing banking facilities. Within just 12 years of launching, bKash became the leading MFS in the country with more than 70 million active and verified users. This breakneck speed of growth often comes with challenges in maintaining customer satisfaction and service quality while increasing profitability at the same time. The simplicity, low prices, and ease of use of mobile financial services have significantly advanced financial services and opportuni ties for interaction with more options. Both urban and rural residents of Bangladesh are regular cus tomers of bKash. The research will present a combination of qualitative and quantitative methods to analyse the opinions of Bangladeshi consumers regarding mobile financial services (MFS). It has been found that customer happiness is highly impacted by excellent performance, with secure transactions, easy to access, and flexibility in customer support being important contributors. This thesis also indicated areas in which bKash might focus to keep their valuable customers and grow its overall market, and it highlighted the importance of enhancing high level service to promote customer satisfaction and commitment. The results show that in order to keep its place in the MFS market, bKash must constantly enhance its offerings. The overview of BKash customer service and satisfaction is highlighted in the thesis. The report shows the necessity of educating customers about mobile financial services. This research paper, which made proper use of bKash in Bangladesh, offers useful guidance for businesses looking to enhance offerings in the quickly evolving field of digital banking in Bangladesh.
One of the objectives of the research was to study how monetary policy of low and negative interest rates has affected the main component of commercial banks. Furthermore, to study the possible reaction of customers to such services from commercial banks. The data for this thesis were collected from literary sources, such as books, articles and sources from previous researches. Moreover, the information was also gathered from the Internet and interviewing of two case groups, two commercial banks and 15 respondents, namely customers. The results of the study show that the issue of low and negative rates for customers is certainly unexpected. Based on the results obtained, it was concluded that, on the one hand, depositors would be ready to take measures to prevent capital loss immediately. On the other hand, people are not quite sure how to behave in such an environment. That leads to the understanding that banks can create an additional product that will allow them to continue to hold capital, thereby increasing their net interest margin.
The global financial world is on the edge of a wide transformation in order to deliver faster, more secure and overall better services to customers. The European Union is enhancing this transition through a well thought set of rules in order to maintain stability and agreement between the participant countries and to grow EU-inland financial entities as whole, therefore setting such regulations for open banking as the Payment Services Directive (PSD and PSD2 – a revised version of the older directive), which allows third parties to intervene in the service chain and provide a variety of banking solutions to banks and their customers. The thesis is a research-based analysis focusing on the key indicators from the perspective of a Payment Service Processor (PSP) when entering a new market. Identifies the foundations of a theory which makes the reader understand the basis on which an investment of a PSP is valid or rejected. Hungary is one of the fastest developing countries within the European Union. The transition from cash to e-solutions and most importantly to banking is significant. Therefore, the thesis focuses on this country as whole as it possesses a rich customer base and an outdated infrastructure which third party service providers can stabilize and develop quickly. Besides pricing, the research focuses on the biggest banks in the region, considering customer base, which is the income accelerator of PSPs and the maturity of digital based payments to understand, compared to other countries, where these countries stand on the long run service implementations. The outcome of the thesis gives a clear understanding for the commissioning company whether the expansion should be taken into consideration and if so, what the numbers are on which the pricing can be done.
Banks’ exposure to risky government bonds has become one of the main reasons of financial instability in recent years, especially in the euro area. The connected fate of banks and their sovereign government, the insufficient amount of safe assets, the high percentages of non-performing loans, as well as the low level of loans supplied to the economy are some of the main issues that need to be tackled in the financial system today. This paper examines the potential benefits of government bond diversification and the introduction of tranches via a new asset in banks’ balance sheets from five countries in the euro area, Greece, Italy, Spain, Portugal and Germany. Additionally, the application of zero risk-weights and the absence of exposure limits to government bonds in banks’ balance sheets is questioned. With the aid of a simulation technique, the distribution of potential future losses for various compositions of banks’ balance sheets is calculated. Furthermore, the credit risk is measured via the VaR or CVaR method. On the one hand, results indicate that diversification of government bonds, may positively reduce banks’ credit risk and thus, lead to an increase in loans supplied. On the other hand, in more stable financial environments such measures may be counter effective. The introduction of sovereign bond backed securities seems to tackle these issues more effectively. When banks hold the safest tranches of such assets, the reduction of credit risk is more effective in all economies examined, which leads to an increase in loan supply in all five countries. Therefore, this study finds support for the creation of a safe asset, as it is suggested in previous literature, in order to tackle some of the main issues that cause financial instabilities in the euro area.
Recapitalization is one of the trending issues when it comes to studies and research pertaining to finance. The drive for banks to revitalize their capital base in order to improve their balance sheet has grown over the years as crises upon crises have erupted due to one financial downturn or the other, causing distress in the financial sectors of a nation. The revitalization of the banking system in a bid to save it from bankruptcy or any financial embarrassment centers on the bank’s ability to reorganize its approaches and strength so as to be revived from such financial crisis. From the comparative analysis done on the effects of recapitalization on the national economy of Finland and Nigeria, it can be deduced that recapitalization has produced positive effects on the economy of both countries by increasing the return on assets, return on equity, net profit ratio, capital investment ratio and basic earnings per share, thereby helping in the reduction of operating cost, enhancement of available fund, investment possibilities of international standard, prospecting of generating more funds from the Stock Exchange Market and adequacy of cash mobilization strategy. Recapitalization is a correlate of national development which is spurred from the various economic modalities put in place by the government through the promulgation of banking policies that will help sustain and improve the national economy significantly.
The impact of disruptive innovation-related modern information systems has recently changed the way businesses operate, resulting in positive implications for those willing to adapt. The digitization of financial services created opportunities for new entrants in the financial industry, known as FinTechs. FinTech refers to the use of modern technologies by nonbank businesses to deliver financial services through online software. Due to factors such as highly regulated environments and solid infrastructures, traditional banks have maintained their dominant positions in the financial service industry for a long time. Nevertheless, new entrants seek to challenge traditional banks and have the potential to reshape financial services in the near future. This thesis explores the collaboration aspects between traditional banks and FinTechs, as well as the regulatory implications in Finland. The study's primary objective is to examine what drives traditional banks and FinTechs to collaborate rather than compete and how the current regulatory framework affects the development of the FinTech industry in Finland. This research was conducted as a quantitative survey with the inclusion of Finnish bankers, FinTech company representatives, as well as other actors with some involvement in financial technology as the target group. A total of 70 respondents from Finland participated in the survey. According to the study's findings, the majority of representatives in each industry category believe that banks' ability to adapt to digitization is critical. As such, cooperation is seen by both sides as a beneficial alternative, allowing both parties to share their key competencies, resulting in, for example, improved and diversified banking services. However, there are certain concerns about the cooperation, which bank executives fear could exacerbate security vulnerabilities. In contrast, it was viewed that Finnish regulation had neither an incentive nor a deterrent to the development of the FinTech industry in Finland. An intriguing finding was that, on average, respondents expected regulation to be altered so that all lenders would be subject to the same regulations.
The thesis was done in cooperation with Bank X. The thesis was implemented to find out how the employees of Bank X experienced the organizational and operational changes done at Bank X’s five banking offices in a specific area. The purpose of the study was to find challenges which came with the change and how the change affected working motivation of the employees and how they could be improved. The thesis theory was limited to familiarize the reader to banking operations, organizational and operational change and to working motivations, all these to support the empirical study. The research method of the study was qualitative. The study was conducted by an employee survey and an interview with a customer relationship manager of Bank X. The results of the thesis indicate that the organizational and operational change went well and into a right direction from the employees’ point of view. The change was experienced as a motivating factor. The team spirit, management work and working motivation were the three biggest positive factors to come from the change. The conclusions made regarding the study were that all in all the organizational and operational change went well. No major challenges have appeared, and the working motivation can be improved by making some changes to the mode of operations within Bank X’s offices.
The purpose of the thesis was to develop a application(desktop) for a business company by using our expertise on IT tools so far. Large amount of research and data collections were done for traditional banking and the modern ones. The main goal was to provide a smoothly running banking system so that general users and the professionals could track the transaction through the business activities. The main technologieds/tools to be used were C#, MS SQL, ADO.NET, .Net framework, MS Visual Studio, Windows 10 OS...etc The idea/research is based on the requirements and necessities of the client including the users based on different types of roles of the stakeholders. The features were based on the level of technical knowledge of the users, questionnaires, interviews, presentations, graphical representation and so on. The results of the survey and other data obtaining tools made me believe that banking system is a complicated thing for appllication that includes number of regulations and legislations. So, we tried to develop a system like it but not as advanced as the real world banking system. It can be taken as a mini version/comceptual of the system by which general users and professionals are able to track the transactions efficiently and act accordingly. Based on the research done, our system and the data can be used as an intermediate representation on how a banking system works with its common features and functionalities. Digitalization of a local business was developed through the development of the proposed system.
This study targets at providing a systematic literature review about the probable impact of Fintech and its associated uses on the banks in a global perspective. This study aims to review the literature to recognize the applicable advantages, the challenges which the Fintech firms could possess for the conventional system of banking. Financial services have altered significantly over the last few generations, owing primarily to advances in technology in telecommunications, information and technolo-gy, and banking policies. Technological advancements prompted innovative strategies that altered a range of different products, services, production methods, and institution-al arrangements. Since some banks around the world continue providing antiquated, expensive, and time-consuming banking sectors, Fintech companies are capitalizing on the chance to just provide some many important functions of conventional banking that rely on innovative technology as a way to differentiate themselves Fintech businesses are creating pragmatic methods to improve the banking industry. The Fintech wave is backed by an assortment of offerings that appear to be less dedicated to marketing in-ventive financial products and much more centered on customers, allowing fast access to an extensive array of reasonably priced and incorporated financial products. The in-troduction of electronic advancements and their apparent effect on financial service sec-tor increases study desire to investigate the phenomenon. The research used a systematic literature review as the method of the study and the materials or sources it were selected from seven databases like Scopus, Bank of In-ternational Settlements (BIS), OECD iLibrary, IEEE Xplore, and National Bureau of Eco-nomic Re-search (NBER), Springer Link, and Research Gate. The ultimate research sam-ple was 23 articles from the years of 2009 to 2022. The major observations were themed and analyzed via the narrative synthesis methodology. According to the results ob-tained from the study, Fintech firms are making inroads and capturing the share of the market that was once dominated by traditional banks. Whereas, they are not expected to completely overshadow by banks. However, their presence drives enhancement in the performance of banks by fostering competition and pushing for advancement in tech-nology and customer service. It is proposed in the pertinent literature that the innova-tions of Fintech innovations in lending might have a substantial function in removing the shortcomings of the credit market by alleviating knowledge variances for customers and forming knowledge spill overs to conventional banking systems.
Asiakasuskollisuuden ymmärtämisen merkitys on kasvanut kiristyneen kilpailun myötä. Erityisesti pankkitoiminnan kaltaisella luottamukseen perustuvalla liiketoiminnalla uskollinen asiakaskunta ja sen oikeanlainen hyödyntäminen voivat tarjota merkittäviä kilpailuetuja alan yrityksille. Vallalla ollut ja edelleen jatkuva pankkialan digitalisaatio haastaa alan toimijoita, sillä pankkien vaihtaminen ja vertaileminen on tullut kuluttajalle aiempaa helpommaksi. Uskollisten ja kannattavien asiakassuhteiden rakentaminen ja ylläpito vaativatkin aiempaa enemmän tietoa ja panostusta pankeilta. Mobiili- ja verkkopankin merkitys kasvaa, mikä tarjoaa pankeille lukuisia mahdollisuuksia asiakassuhteiden hoitoon ja asiakasdatan keräämiseen ja hyödyntämiseen. Tämän pro-gradu tutkielman tavoitteena oli tutkia asiakasuskollisuuden merkitystä kotimaisella pankkisektorilla. Asiakasuskollisuuden muodostumista lähestyttiin aiemmissa tutkimuksissa havaittujen merkittävimpien determinanttien kautta, joita olivat imago, luottamus, asiakkaan kokema arvo, palvelun laatu ja asiakastyytyväisyys. Lisäksi huomioitiin asiakkaiden alttiudet inertialle ja pankin vaihdolle. Tutkielmassa käytetty tutkimusmuoto oli laadullinen, ja aineisto kerättiin kahdentoista puolistrukturoidun yksilöhaastattelun kautta. Haastateltavat koostuivat pankkialan kokeneista ammattilaisista, joilla on omakohtaista kokemusta asiakkuuksista ja asiakasuskollisuudesta. Haastattelut toteutettiin verkkohaastatteluina. Tutkielman tulokset ovat pääosin linjassa aiempien tutkimusten kanssa ja siten vahvistavat samojen asiakasuskollisuuden determinanttien olevan merkittäviä myös kotimaisella pankkialalla. Haastatteluiden tulokset syventävät lähdekirjallisuuteen perustuvia tuloksia, esittelemällä löydöksiä pohjautuen haastateltavien omiin näkemyksiin ja kokemuksiin. Haastateltavien vastaukset tarjoavat tuoreita ideoita ja ehdotuksia pankkialan managereille siitä, mitkä ovat toimivia käytäntöjä asiakasuskollisuuden parantamiseksi, ja mitä toisaalta pankit voisivat tehdä nykyistä enemmän asiakasuskollisuuden kasvattamiseksi.
A bank is a financial institution and intermediary that receives deposits and uses them to fund lending operations through loans or capital markets. Banks can borrow money by accepting deposits on current accounts, accepting term deposits, and issuing debt securities like bonds and banknotes. Banks lend money via funding advances on current accounts for consumers, disbursing installment loans, and investing in marketable debt securities, among other methods. Interest applies to both receiving and making deposits. An Islamic bank is a type of financial institution that works to bring Islam's monetary and economic tenets to life in the banking industry. Islamic banks operate according to profit-loss sharing and other acceptable business models as per Shariah law. The essential distinctions between conventional banking and Islamic banking lie in how each has conducted business and, more importantly, in the principles underpinning Islamic banking's entire framework and worldview. In recent years the Islamic banking and finance industry has been growing considerably. Islamic banking and financial assets have grown faster than conventional banking assets in most Muslim countries. Non-Muslims from European, American, African, and Asian countries have also expressed interest in Islamic Finance. Sharia-compliant Islamic financial assets value is estimated at $3.374 trillion, including bank and non-bank financial institutions, capital markets, money markets, and insurance. This thesis investigates customer satisfaction with Islamic banking services and shows customers' experiences for future influences on new customers and markets, how Islamic banks or finance can develop their service and handle new customers' financial problems. Qualitative and quantitative research are the main methods of this research. Survey data was acquired via a questionnaire from students, service holders, and businesspeople. The research findings will benefit new Islamic banking and finance customers like Muslim immigrants, startup enterprises, and markets, as well as the further development of Islamic banking and financial products. In addition, it helped to understand how service design may be used in Islamic banking and finance to improve the customer experience.
This thesis investigates the research question how European banks can strategically strengthen their sustainable lending ecosystem. The climate crisis along with other megatrends have shaped the financial industry significantly and the fast growth of sustainable finance provides both opportunities and threats to the traditional banking business model. To investigate how banks can strategically position themselves this study examines specialties around the sustainability-linked loan. By means of a driving forces analysis, the most important action fields for strategic decision-making for banks regarding the sustainability-linked loan have been identified. The analysis of those action fields shows that banks should aim to use the current momentum in sustainable finance and position themselves as pioneers to gain competitive advantage. The research further showed that there is an incentive for banks to use greenwashing methods regarding the sustainability-linked loan. To prevent greenwashing allegations, it is necessary to introduce sensible and standardized ESG-frameworks and key performance indicators early on along with preparing for future developments in the area of regulation.
Ever since the global financial crisis (GFC), economies worldwide have been trying to recover from the worldwide recession. Central Banks have thus introduced different un-conventional monetary policies to ensure additional monetary stimulus: however, with inflation still not meeting the wanted target and banks hoarding reserves, Central Banks introduced yet another radical monetary policy; Negative Interest Rate Policy (NIRP). The purpose of this research was to assess whether there have been changes in the way banks operate and make money during the period of negative interest rate. The theoretical framework of this thesis was comprised of literature on negative interest rates as well as literature on the various tools of monetary policies. The research questions were the following: Has the ratio of banks’ net interest to total revenue changed in the period of 2010-2020? Did banks cut expenses to make up for possible loss in profit? Have banks increased fees to battle possible loss of income? Has the most important source of income changed due to NIRP? With both qualitative and quantitative data this research strived to answer the research questions using mixed method, where quantitative data sought to be explained by qualitative data. This research concludes that banks changed operating ways, but only slightly as the decrease of profit and net interest rate ratio made banks compensate for lost income with various fees and commissions. Negative interest motivated banks to develop new products, services and focus more on gains from non-interest in-come.
In an era marked by digital transformation and an increasing emphasis on financial inclusion, this thesis explores the pivotal role of mobile banking in addressing the multifaceted challenges faced by women in Tunisia. Leveraging a comprehensive research framework, this study investigates the adoption and utilization of mobile banking services among Tunisian women, with a keen focus on their satisfaction, financial empowerment, and inclusion. Through a combination of quantitative surveys, and data analysis, this research uncovers the intricate dynamics between mobile banking access, financial literacy, socio-cultural factors, and women's participation in the formal financial system. The findings illuminate the profound impact of mobile banking as a catalyst for financial inclusion, shedding light on its potential to bridge gender-based financial disparities and empower women economically. Ultimately, this thesis contributes valuable insights to the fields of gender studies, financial inclusion, and digital finance, offering a nuanced understanding of the transformative potential of mobile banking for empowering women in emerging economies.
Yksityisten kryptovaluuttojen kilpailu perinteisen käteisrahan sekä vähimmäisvarantojärjestelmän (reservi) kanssa on ajanut keskuspankit ympäri maailman tutkimaan kolmatta vaihtoehtoista keskuspankkirahan muotoa käteisen ja reservin ohelle. Kolmas vaihtoehto voisi nykytutkimuksen perusteella olla keskuspankin digitaalinen valuutta (CBDC, Central Bank Digital Currency). Merkittäviä CBDC:n tutkimuksen edistämiseen vaikuttava tekijöitä ovat käteisen käytön väheneminen sekä tarve uusille maksuselvitysjärjestelmille. Tässä tutkielmassa tarkastellaan keskuspankin digitaalista valuuttaa rahoitusvakauden näkökulmasta. Pyrkimyksenä on selvittää, kuinka tällainen valuutta vaikuttaa rahoitusvakauteen sekä maksujärjestelmien käsittelyyn. Koska CBDC-tutkimusala on vasta kehittymässä, tutkimus toteutettiin käyttämällä integratiivista kirjallisuuskatsausta sekä akateemisten tietokantahakujen avulla. Iso-Britannian ja Ruotsin keskuspankit valittiin mahdollisiksi varhaisiksi keskuspankin digitaalisen valuutan käyttäjiksi, koska nämä keskuspankit ovat tehneet tutkimusta CBDC:n osalta jo pitkään. Tutkielman päähavainnot ovat seuraavanlaiset: Keskuspankin digitaalisen valuutan käyttöönotolla vaikuttaa olevan positiivinen vaikutus eritoten rahapolitiikan välittämisen tehokkuudessa kansantalouden eri alueille. Keskuspankin digitaalisen valuutan käyttöönottovaiheessa on useita riskejä liittyen finanssi- ja pankkisektoreiden vakauteen. Kuitenkin useat tutkimukset osoittavat, että pankkivakauteen kohdistuvat riskit voidaan oikeanlaisilla toimilla välttää. Rahoitusteorioiden osalta tutkimus toteaa, että CBDC:n ensivaiheen käyttöönotto on jo mahdollista Iso-Britannian ja Ruotsin keskuspankeissa. Tutkimuksen mahdolliset käyttökohteet ovat CBDC:n käyttöönottovaiheen riskien tunnistamisessa.
This thesis research was designed to study digital transformation and change management in Guulpay. Guulpay was found by Q-Express Online Oy and started operating in january 2021. Before Guulpay became digital bank was remittance company that does crossborder wise transactions. Guulpay was a part of major digital transformation that affected it’s daily operations. The main objective of this research is to answer the main research question: how Guulpay employees feel about the digital transformation of the banking sector and the change management at Guulpay? In this research journey the thesis writer comprehends change, key factor in change management and digital transformation affect on the bank. A survey is the quantitive method for this reseach. The survey was conducted to Guulpay employees to study how Guulpay employees feel about the digital transformation and change management in Guulpay. In the theoretical chapter of this thesis, the writer gives a comprehensive overview about digital transformation theory in the financial and banking sector, from early day to the present and future. Also in this same chapter the thesis focuses on main factor in change management. In this part, both literary and digital sources were used. Most of the resources are digital . In the empirical chapter, a survey was conducted to Guulpay employees to find out how they feel about digital transformation and whether change was managed successfully. For quantitative research survey is the best method because its cost effective, flexible, and It allows you to collect very large sample of data . The analysed results in the survey are general views of the respondents how they felt about the change management in Guulpay. The general feeling was satisfaction with the new changes, however, there were few suggestions in some areas need to be improved. Lack of training in digital issues, not very active change communication and rush system implementation are raised concerns.
Teknologian kehittyminen johtaa uusiin innovaatioihin niin yritysten liiketoiminnassa kuin jokapäiväisessä elämässäkin. Teknologian kehittyessä kehittyvät myös kyberuhat. Pankkisektori kuuluu yhteiskunnan kriittiseen infrastruktuuriin, joten sen vakaudesta ja turvallisuudesta on pidettävä huolta. Pankkisektoriin kohdistuvia kyberuhkia on tutkittava, jotta luottamus rahoitusjärjestelmään säilyisi vahvana. Tämän kirjallisuuskatsauksena toteutetun tutkielman tavoitteena oli määritellä pankkien kohtaamat kyberuhat sekä niiden kehittyminen tulevaisuudessa. Tutkielmassa tarkasteltiin pankkien toimintoja, jotka ovat erityisen alttiita kyberuhille ja teknologioita, joita pankit hyödyntävät. Tämän jälkeen käytiin läpi pankkisektoriin kohdistuvia kyberuhkia sekä niiden kehitystä. Tutkielmassa tarkasteltiin myös koko ajan kasvavaa finanssiteknologia-alaa ja sen aiheuttamia uhkia. Tutkielma perustui pankkien kyberturvallisuudesta, pankkisektorista sekä finanssiteknologiasta aiemmin tehtyihin tutkimuksiin. Pankkien kohtaamista kyberuhista tutkielmassa nousivat esiin erityisesti kyberrikollisuuden muodostamat uhat sekä organisaation sisältä tulevat uhat. Näiden lisäksi kyberuhkia aiheuttavat heikkoudet informaatioteknologian infrastruktuurissa sekä kehittyvät teknologiat, kuten lohkoketjut ja esineiden internet. Uhat kohdistuvat erityisesti pankkien omaisuuteen, kuten asiakkaiden tietoihin sekä rahavaroihin.
The aim of this thesis was to explore the key attributes of customer satisfaction and Customer relationship Management, to understand the strategies of ICICI Bank on customer satisfaction and CRM, and to study the customer satisfaction level of the bank’s customers. A wide range of sources, both old and new, physical, and digital, form the literature source of this thesis. A mix of qualitative and quantitative research method was employed as the research methodology of this thesis. Survey questionnaire with 5-point Likert scale was used for quantitative data collection and was analysed statistically via Webropol. Survey was sent to 100 customers of ICICI bank, of which, 51 responses were received. 36 were males while 15 were females. For qualitative research, a semi-structured interview was conducted with a banking expert and the responses received were qualitatively analysed. The quantitative findings suggested that the bank has provided timely services, is willing to help customers, and possesses new and modern equipment and attractive infrastructures. The bank seems sincere in solving customers’ problems, meeting their needs, and satisfying them. The qualitative interview was more focused on understanding the CRM strategies of ICICI bank. The rich data suggested that the bank has strongly advocated its internet banking and digitalization. However, a large number of neutral responses may indicate that the ICICI bank may have to assess and amend some of its CRM strategies to retain their existing customers and expand their customer base. The bank may have to review matters such as employees’ cooperation with customers, the interest rate offerings, and demonstrate proper care in dealing with customers.
Small and Medium Enterprises (SMEs) are very important to the development of a country’s economy and have been known to play a very vital role in the reduction of unemployment in countries all over the world without the inclusion of Nigeria. Despite the importance of small and medium enterprises, over the years, they have had the continuous problem of lack of finance to grow the business which mostly leads to the death of the business due to small and medium enterprises (SMEs) difficulty accessing loans from financial institutions. The objective of this thesis was to find out the challenges that faced small and medium enterprises (SMEs) when accessing loans from banks. The population of the research included the SMEs in Lagos State. Non-probability sampling technique was used to select 50 SMEs in Lagos State to fill the questionnaire, the research instrument which was uploaded on Google Forms. The results of the research show that small and medium enterprises have their loans applications rejected by banks, the banks give very short loan maturity period and even though most of the SMEs have their business plan, they are still denied access to loans by the banks. SMEs are recommended to take care of their business accounting and try other sources of financing such as venture capitalist, angel investors and crowdfunding. The research also includes recommendations to Banks and the Government.
Tämä opinnäytetyö tutkii tekoälyteknologian nykytilaa, sen kykyjä ja sovellusmahdollisuuksia pankkialalla sekä sen potentiaalia parantaa pankkitoimintoja. Tutkielma tarkastelee myös tekoälyn nykyistä ja tulevaa käyttöönottoa pankkialalla ja rahoituslaitosten kohtaamia haasteita tämän teknologian käyttöönotossa. Lisäksi se hyödyntää tekoälymallia, Azure Machine Learningia, suorittaakseen tunneanalyysin pankkialaan liittyvistä keskeisten sidosryhmien haastatteluista. Tunnepohjaisen analyysin tavoitteena on tallentaa mielipiteet ja näkemykset tekoälyn nykyisestä ja tulevasta roolista pankkialalla. Yleisesti tutkimustulokset osoittavat myönteistä suhtautumista tekoälyn käyttöön pankkialalla ja, että monet asiantuntijat odottavat sen tarjoavan merkittäviä etuja alalle. Koska tekoälyteknologia on kuitenkin vielä alkuvaiheessaan, sen tulevista sovelluskohteista ja sen käytön laajuudesta pankkialalla on epävarmuutta. Lisäksi tunneanalyysi paljastaa ristiriitaisia tunteita pankkien tulevasta kilpailukyvystä tekoälyn nousun ja uusien rahoitusteknologia-toimijoiden myötä, jotka ovat paremmin varustautuneita hyödyntämään tätä teknologiaa kuin perinteiset pankit.
We investigate whether European banks adjust their loan prices and volumes of new lending in the months running up to major national elections. Using a unique dataset that draws on data covering some 250 banks in 19 Eurozone countries from 2010 to 2020 at monthly frequency, and that includes lending amounts and interest rates on new lending, we find that European banks increase loan rates for corporate and housing loans ahead of elections. This supports the view that loan pricing changes of European banks are driven by the electoral uncertainty inherent to the democratic election process. We find that the impact of elections is more pronounced for small banks, as well as obtain some evidence that elections affect the credit supply of banks. Our findings suggest that the occurrence of elections is affecting the behavior of European banks.
The abstract presents the key issues of a thesis in such a way that the reader gets a good understanding of the main points that the report covers. The abstract presents the background of the thesis, the goals, scope, implementation, methods, timing, as well as results and conclusions of the study. The abstract follows the same order as the report. Corporate social responsibility (CSR) is a subject that has been around for quite some time and it is being researched by scholars around the world. Corporate social responsibility is about how organization runs its business without hurting the society for the sake of the next generation. CSR is about how companies manages the business processes to produce overall positive impact on society. One of the means for organization to show their economic, environment and social impacts is through sustainable reporting. Organizations utilize sustainability reporting to communicate and to measure their economic, social and governance performance. Commonly organizations adopt GRI Standards framework to guide through the reporting process. Financial institutions have a major role in sustainability development through their business activities such as investment, funding and lending. Banks that operate within the European union have presented great strength and robustness to adopt changes and to improve their financial system. Purpose of this research is to analyse extensiveness of sustainability reporting within three banks from Finland and three banks from Sweden. The selected banks from Finland are Nordea bank, OP bank and Aktia bank. Banks from Sweden are Handelsbanken bank, SEB bank and Swedbank. This is a comparative research. The research provides users knowledge of sustainability reporting and how the reporting is being carried out within the analysed banks. The research is trying to find out differences and similarities between the approach to the topic in two countries. Research method of this study is qualitative secondary research. All sustainability reporting from six analysed banks was collected during the research. Global Reporting Initiative standard disclosures, guidelines and requirements are used as a benchmark. All information needed for this research comes from online sources such as banks’ sustainability reports, annual financial reports and information from banks’ websites. The result of this research concludes that there are no outstanding dissimilarities between Finnish banks sustainability report disclosures to Swede banks. All the studied banks have reported more social-related disclosures than economic nor environmental.
The domination of mobile financial services in the global finance sector is manifested in both developed and developing countries. In Bangladesh, for instance, traditional banking platforms had dominated the financial sector for several decades, but the entry of mobile financial services has expanded the scope of service delivery within the sector for non-bank financial institutions. A similar case exists in Finland, where an increase in the use of mobile financial services has forced players within the banking sector to consider revising the existing legislation and regulations to boost the operationalization of such services. The issue, however, has been the skewed growth of mobile financial services, where the developing countries have shown an increase in the adoption of such services compared to the developed countries. In this analysis, some of the identified reasons for this phenomenon include the introduction of a larger population of developed countries that were never captured by the existing traditional banking processes with the introduction of mobile financial services. The other factor is the nature of the service packages that are provided through mobile financial services that have proven attractive to populations in the developing countries. In the developed countries, the approach in incorporating mobile financial services has been in a complementary manner, as opposed to a mechanism of expansion, as is the case in developing countries. This explains the skewed growth of mobile financial services in the developing countries compared to developed countries.
The Neobanks entering the banking industry and market, risks, as well as challenges relating to them have thus far been subject to hardly any academic research. This provides a strong motivation for this thesis. The purpose of this thesis is to do research on several aspects of Neobanks from both the customer’s and society’s point of view. The main focus is on the following three facets of Neobanks: (1) challenges, (2) risks, and (3) opportunities, that they have brought with them since their emergence roughly a decade ago. The investigative questions of this thesis are: IQ. 1. What new possibilities have Neobanks brought to banking customers? IQ. 2. What risks are associated with using Neobanks? IQ. 3. Sustainability of the Neobank ecosystem and future challenges on a societal level. These enable answering the research question “What are the challenges, risks and opportunities linked to Neobanks” To better reflect the challenges and risks associated with the rise of Neobanks, are the laws and regulations relating to the general banking industry with an emphasis on anti- money laundering and terrorism financing, as well as the ‘Know your customer’ (KYC) regulations examined. This thesis additionally investigates the risks related to both Neobanks and the traditional banks that arise particularly from cybercrime associated with technology in the banking industry. The two largest Neobanks according to European market share were chosen as representatives of the population of Neobanks. Both qualitative and quantitative data were collected, including interviews of financial experts. Through numerical and qualitative summaries of the data the author found that Neobanks may have legally questionable practices related with KYC regulation and that opportunities for money laundering through Neobanks should be taken into serious consideration by authorities and legislative bodies. In conclusion, the future business model, market share and commercial success of Neobanks are difficult to predict, but it can be anticipated that the banking industry will nevertheless face disruptive changes stemming from the widespread adoption of internet technology, rise of cryptocurrencies and the open banking related to EU legislation.
In 2020, the outbreak of COVID19-pandemic forced institutions, such as countries and corporations, to adapt to new operating circumstances. Two years after 2020, a war broke out in Europe, Ukraine, unprovokedly started by the Russian federation, which changed not only geopolitical and economic atmosphere in Europe but also worldwide. Due to these events, the author saw it necessary to investigate, how has the biggest bank of Northern Europe, Nordea Bank Abp, considered a changed atmosphere it has been operating in related to its risk management policy. The objectives for the author were to examine, what risks did Nordea Bank Abp recognize during unstable period of time 2020-2022 and how did it manage the risks. The author wanted to see whether the COVID19-pandemic and the war in Ukraine made Nordea to adjust their hedging policy in order to survive as well as possible given the challenging, uncertain times. The research was conducted almost fully utilizing qualitative information, given the nature of information provided by Nordea in its Capital and Risk Management Reports from the years 2020-2022. Although, some quantitative data was also utilized to supplement the results. The information provided by Nordea showed that during the years 2020-2022, the recognized risk types and the methods of managing remained mostly identical. COVID19-pandemic was brought up multiple times by the bank, but the war in Europe was discussed only a little during the bank’s Capital and Risk Management Report 2022. The information provided by Nordea showed multiple different recognized risk types and hedging methods, which from time-to-time beared resemblance to the author’s literature review. Also, the information suggested that the COVID19-pandemic significantly influenced Nordea’s risk management onwards 2020. However, despite being situated near an imperialistic, post-Soviet state attempting to annex a European country, Nordea has not had substantial tangible effects linked to its risk management due to the war in Ukraine, while the bank still has addressed the war.