Do Basel Accords influence competition in the banking industry? A comparative analysis of Germany and the UK

Leonida, Leone; Muzzupappa, Eleonora

doi:10.1057/s41261-017-0053-0

Cited by 5 publications

(8 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Its main characteristics are raising the capital and liquidity requirements, increasing regulation in those entities that suppose a systemic risk, establishing a resolution authority for those intermediaries with difficulties with new rules for the degrees and derivatives, protecting the consumer, and achieving greater international protection. Figuet, Leonida and Muzzupappa (2018) underscore the most forceful aspects of this law. They talk about a redesign of the institutional framework.…”

Section: Discussionmentioning

confidence: 99%

“…Consequently, risk management should be done at the beginning of the life cycle of the project, as well as continuously. The importance is that opportunity and risk usually remain relatively high during project planning (at the beginning of the life cycle), but due to the relatively low level of investment at this point, what is at stake remains low (Leonida and Muzzupappa 2018).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Untitled

2021

IJO-BS

View full text Add to dashboard Cite

The importance of banking for the functioning of the economy and the origin of the funds that finance it motivates the concern of monetary authorities for the stability of these institutions. The sub-prime crisis of 2008 highlighted the risks that affect the banking industry and the associated cost to the economy when they are not properly managed, and their risk is mitigated. The current study has used the quantitative research approach. In the quantitative approach, the researchers used the questionnaire to collect the primary data from the research respondents. The study population was the staff who work in the Libyan banking industry, and the samples were 310 respondents. The findings of this research have confirmed a positive and significant relationship between risk management and the implementation of Basel III by the Libyan banking industry. Basel III recommends that the authorities monitor the growth of bank credit and other indicators to assess whether excessive risks are being generated in the system financially. Based on this assessment, the authorities would decide when to activate the countercyclical capital to contain excessive credit expansion and, therefore, minimize the probability of severe banking problems.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Untitled

2021

IJO-BS

View full text Add to dashboard Cite

show abstract

“…Bad debt rates in BNPL in Australia are four times higher than in Europe. European BNPL bad debts range from 0.2 to 0.35 percent of BNPL sales, whereas in Australia and New Zealand the range is 0.9 to 1.43 percent [37]. In comparison, across Australia's four major banks, bad debt expense in 2019 as a proportion of gross loans was 0.13 percent, a sizeable improvement on the historic average of 0.27 percent over the last 25 years [64].…”

Section: General Consumer Considerations Such As the Effects Of Indementioning

confidence: 95%

“…The banking regulation model in Germany has been described as "a multi-regulatory framework with strong corporatist elements and with explicit deposit insurance" [36] (p. 203). Germany has a strong publicly-owned banking sector and, compared to regulation in the UK, is considered to be more riskaverse [37]. Germany also has a notably large fintech market with around EUR 17 billion in transactions processed through a fintech platform in 2017 [38].…”

Section: Germanymentioning

confidence: 99%

Analyzing the Impacts of Financial Services Regulation to Make the Case That Buy-Now-Pay-Later Regulation Is Failing

2021

View full text Add to dashboard Cite

Fee-based Buy-Now-Pay-Later services (BNPL) are becoming widely adopted in many developed countries, including Australia. Across a variety of regulatory approaches there appears to be relatively minimal regulatory coverage of fee-based BNPL. This review applies a results-oriented, behaviourally informed market failure approach to assess the regulatory outcomes of fee-based BNPL. The review makes the case that the impacts of the regulation of fee-based BNPL in Australia demonstrate multiple forms of regulatory failure. The regulatory failure is particularly due to regulatory capture at a broad level and especially in terms of a lack of consumer protections. Consumers may particularly need consideration and protection because understanding the increasing complexity and financial knowledge at the heart of many fintech services is beyond the capability or responsibility of the consumer. Incorporating social and consumer considerations into analyses of regulatory structures can enable analyses of the regulation of fintech and move financial services regulation toward providing more socially useful and sustainable financial services. In the future, a behaviourally informed approach to the regulation of fintech may be beneficial and enhance sustainability.

show abstract

“…For the UK and Australia, their governments publish regulations to ensure the safety and profitability for financial institutions under the Basel Accords framework according to local finance environment (Leonida & Muzzupappa, 2017;RIS, 2012). For China, on the other hand, as China's banks lack good governance, China cannot run the same process as the UK and Australia.…”

Section: Bank Risk Management and Performance 221 Bank Regulations -The Basel Accords And Local Financial Regulationsmentioning

confidence: 99%

Comparative bank financial risk management models in fintechs and challenger banks

Zhao¹

View full text Add to dashboard Cite

Risk management in banking operations is a popular topic among researchers in the fields of management and banking. Due to developments in technology, research on financial technology has also become a hot topic. Banks and financial technology companies (fintechs) need to learn what risks impact their operations and how to manage these risks effectively. The aim of this study is to investigate the relationship between risk management and bank performance, compare it between traditional banks and challenger banks/fintechs, and make suggestions on how to improve performance by analysing historical data. This thesis adopts a mixed-method approach, estimating risk variables and their impacts on bank performance through panel data regression models (random-effects and generalised method of moments) and conducting case studies to contribute to knowledge in theory and practice. This research investigates the relationship between five main types of risks (credit risk, market risk, liquidity and capital risk, reputational risk, and operational risk) and bank performance measured by three variables (ROA, ROE and EPS). This study confirms the importance of risk management in bank performance. For example, credit risk variables show negative impacts on all banks, which suggests that reducing credit risks could increase bank performance. Market risk variables are complex with both positive and negative effects on bank performance. Thus, banks should keep market risk at a balanced level to receive better performance. Moreover, bank performance could be increased by increasing liquidity, capital and reputation as well as reducing debt, operational issues and costs. The contributions of this research include the enhancement of literature on the relationship between bank performance and risk management. Also, this research creates a greater awareness of risk management for challenger banks and fintechs. Moreover, it fills gaps in the literature by comparing results for traditional banks with those for challenger banks and fintechs. The results of this research offer new insights into risk management for both traditional banks and challenger banks and fintechs for iii academics and have the potential to assist traditional banks and challenger banks and fintechs in managing their risks and improving their efficiency in practice.

show abstract

Do Basel Accords influence competition in the banking industry? A comparative analysis of Germany and the UK

Cited by 5 publications

References 12 publications

Untitled

Untitled

Analyzing the Impacts of Financial Services Regulation to Make the Case That Buy-Now-Pay-Later Regulation Is Failing

Comparative bank financial risk management models in fintechs and challenger banks

Contact Info

Product

Resources

About