Bank Credit Growth and Trust: Does Institutional Quality Matter? Evidence from the Association of Southeast Asian Nations

Albaity, Mohamed; Mallek, Ray Saadaoui; Noman, Abu Hanifa Md.; Al‐Tamimi, Hussein A. Hassan

doi:10.1142/s0116110522500172

Cited by 3 publications

References 85 publications

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D: Management, Accounting and Technology

2022

World Banking Abstracts

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Using corporate social responsibility (CSR) ratings as a proxy for ethical culture, the study examines whether a firm's CSR rating influences its stock repurchase decisions. Using a panel of US firms over the period 1996-2017, baseline results indicate a positive association between CSR and repurchases, while CSR appears to amplify the positive association between free cash flow and stock repurchases and lessens the positive association between executive options and stock repurchases. These findings suggest that corporate ethics could play a significant role in repurchase decisions by encouraging repurchases that are aligned with shareholders' interests, while discouraging those in managers' interest. (1 figure, 14 tables, references)

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D: Management, Accounting and Technology

2022

World Banking Abstracts

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The impact of management performance on risk-taking behavior in a dual banking system: A cross-country analysis

Fakhrunnas,

Nahda

2023

Banks and Bank Systems

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In an era defined by global economic uncertainty, the role of management performance in influencing bank risk-taking has become pivotal. This urgency stems from the evolving dynamics of the banking sector and the need for robust risk management strategies. This study investigates the relationship between management performance and banks’ risk-taking behavior, drawing data from 248 banks across eight countries comprising Indonesia, Malaysia, Bangladesh, Pakistan, Saudi Arabia, Oman, Bahrain, and the United Arab Emirates spanning 2013–2021 using panel data analysis. The study reveals that management performance measured by a cost-to-income ratio (β = –0.44, p &lt; 0.01) has a negative and significant relationship with bank risk-taking behavior. In essence, a bank with superior management performance, indicated by a lower cost-to-income ratio, tends to have greater financial stability, as evidenced by a higher Z-score. Notably, external factors like the financial crisis and institutional development as moderating variables do not significantly alter the relationship between management performance and banks’ risk-taking behavior. The study also discovers that Islamic banks (β = 0.31, p &lt; 0.01) outperform their conventional counterparts in risk management and management performance. However, it is worth noting that the results of regional analysis demonstrate variations across the Southeast, South, and Middle East regions. After conducting several robustness check tests, the findings of this study remain consistent, offering valuable implications for both policymakers and bank management. These insights emphasize the importance of formulating appropriate regulations and frameworks to enhance management performance at the banking level. AcknowledgmentThe authors gratefully acknowledge the support from Direktorat Penelitian dan Pengabdian Masyarakat (DPPM) Universitas Islam Indonesia No: 006/Dir/DPPM/70/Pen.Unggulan/III/2023 for providing a research grant to this study.

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The Relationship Between Bank Credit Expansion and Economic Growth

Luzendo,

Jungo,

Canguende-Valentim

2024

The Role of Financial Inclusion for Reaching Sustainable Development Goals

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An inclusive financial system favors easy, safe, and affordable access to financial products and services for all economic agents without discrimination, and access to credit is an important component of financial inclusion. The aim of this study is to examine the effect of credit expansion on economic growth in the Community of Portuguese Speaking Countries (CPLP) over the period 2000-2021. The result of the feasible generalized least squares (FGLS) estimation model confirms that bank credit has a negative impact on economic growth. Therefore, these results clearly indicate that the cost of financing (high interest rates) and the weak development of the financial sector are a major constraint on economic growth in these countries. In addition, the result indicates that encouraging consumption and government spending on education can sustain economic growth.

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Bank Credit Growth and Trust: Does Institutional Quality Matter? Evidence from the Association of Southeast Asian Nations

Cited by 3 publications

References 85 publications

D: Management, Accounting and Technology

D: Management, Accounting and Technology

The impact of management performance on risk-taking behavior in a dual banking system: A cross-country analysis

The Relationship Between Bank Credit Expansion and Economic Growth

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