Article
Management
Ross Levine, Chen Lin, Wensi Xie
Summary: This paper examines the impact of geographic diversification on a bank's costs of interest-bearing liabilities. The findings suggest that expanding across U.S. states can lower funding costs, particularly when banks expand into states with less correlated economies and in better-monitored and better-run banks. This indicates that geographic diversification can help in reducing costs of interest-bearing liabilities, especially in banks with lower agency frictions.
MANAGEMENT SCIENCE
(2021)
Article
Business, Finance
Krzysztof Jackowicz, Lukasz Kozlowski, Pawel Wnuczak
Summary: The number of brick-and-mortar bank branches is decreasing, with varying impacts on local banking markets. Factors such as banks' business models, clients' Internet use, and merger processes influence the rate of local bank branch closures.
FINANCE RESEARCH LETTERS
(2021)
Article
Business, Finance
Axelle Heyert, Laurent Weill
Summary: This study examines the relationship between gender and trust in banks. Using individual data from the 7th wave of the World Values Survey covering 53 countries from 2017 to 2021, the study finds that women generally trust banks more than men worldwide. However, there are variations in the gender gap in trust in banks across countries, suggesting the influence of country-specific factors. The study further explores that experiencing a banking crisis has a greater negative impact on men's trust in banks compared to women, leading to higher trust in banks among women who have experienced a banking crisis. Additionally, greater gender equality and financial inclusion at the country level contribute to an increased gender gap in trust in banks.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE
(2023)
Article
Management
Jennifer Dlugosz, Yong Kyu Gam, Radhakrishnan Gopalan, Janis Skrastins
Summary: Using natural disasters as shocks, this study finds that a bank branch's ability to set deposit rates locally has real effects. After disasters, branches with local rate-setting power increase deposit rates and experience higher deposit volumes in affected areas. Banks with more branches setting rates locally expand mortgage lending in affected areas, indicating imperfect insurance from internal capital markets. House prices recover faster in local areas where more branches have rate-setting power.
MANAGEMENT SCIENCE
(2023)
Article
Energy & Fuels
Eder Castro-Nagatomy, Julio Castillo-Carmelino, Carlos Raymundo-Ibanez, Maribel Perez-Paredes, Francisco Dominguez
Summary: Deforestation is a major environmental problem in countries with large forest areas like Peru, mainly caused by factors such as paper consumption. Despite the COVID-19 restrictions, 90% of financial institutions still rely on traditional document management systems. However, research shows that digitizing processes can significantly reduce costs and time.
Article
Green & Sustainable Science & Technology
Dora Szili, Tibor Guzsvinecz, Judit Szucs
Summary: This study investigated the factors influencing bank choice, including location, security, and e-banking functions, as well as customer characteristics such as gender and age. The findings revealed that personal visits to banks decreased after the COVID-19 pandemic, while the number of e-bankers increased. Gender was not a significant factor in bank choice based on location, but older individuals chose different banks than their younger counterparts. The security of internet banking functions did not affect bank choice, but the security of the mobile banking application did. Males and females rated banks similarly, but younger individuals tended to be more critical in their ratings. Security, accessible location, and good customer service were associated with more positive ratings. These findings are important for banks in Hungary to improve their services, attract customers, and enhance customer satisfaction.
Article
Business, Finance
Fernando ubeda, Alvaro Mendez, Francisco Javier Forcadell
Summary: Lack of access to banking leads to inequality in the developing world, making financial inclusion a crucial objective of the Sustainable Development Goals. Our study examines the impact of sustainable practices of multinational banks (MNBs) on financial inclusion. Analysis of a sample of 275 MNBs, 16 developing countries, and 16,618 individuals provides robust evidence confirming the positive effect of these practices on financial inclusion. Specifically, we find that sustainable MNBs contribute to increased usage of mobile banking, a powerful tool for achieving financial inclusion in the developing world.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Patty Duijm, Dirk Schoenmaker
Summary: Cross-border banking has a positive impact on reducing bank risk, decreasing insolvency risk, and creating a more stable income profile.
FINANCE RESEARCH LETTERS
(2021)
Article
Business, Finance
Yiannis Anagnostopoulos, Kjetil A. Husa, Emmanouil Noikokyris
Summary: This study examines the efficiency differences between EU and U.S banks from 2000 to 2018. The findings reveal that European banks have consistently lagged behind their American counterparts in terms of technical efficiency, resulting in an overall efficiency difference between the two regions. Despite the slower efficiency growth of European banks, the sector has still experienced some growth. Larger banks achieve higher technical efficiency by increasing their credit risk, while smaller banks exacerbate the "too-big-to-fail" issue by reducing their risk exposure.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2022)
Article
Business
Pina Mure, Marco Spallone, Fabiomassimo Mango, Stefano Marzioni, Lucilla Bittucci
Summary: This study investigates the relationship between banks adopting ESG practices to reduce reputational damage and the probability of receiving sanctions, finding a positive correlation between ESG scores and the probability of sanctions. An analysis reveals that banks need to improve their reputation through the adoption of ESG practices to mitigate the detrimental effects of financial penalties.
CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT
(2021)
Article
Business, Finance
Thorsten Beck, Jan Keil
Summary: By exploiting spatial and time variation, the study finds that banks more exposed to lockdown measures experience an increase in loss provisions and non-performing loans. The exposure to the pandemic itself has a similar but slightly weaker effect. Additionally, it is observed that small business lending increases due to government-guaranteed loans replacing regular loans. Interestingly, lenders more exposed to lockdown measures rely more on government-guaranteed loans, even when controlling for borrower exposure. Finally, there is a reduction in the number and average amount of syndicated loans for banks more affected by the pandemic, as well as an increase in interest spreads.
JOURNAL OF CORPORATE FINANCE
(2022)
Article
Business, Finance
Xiaoting Shang, Huayong Niu
Summary: This study explores the relationship between digital transformation and green credit in the banking industry. Based on data from China's banks from 2010 to 2021, it finds that the digital transformation of banks has a positive impact on the scale of green credit. Among them, a higher level of bank management digitization is more effective for green credit growth. From the perspective of cooperation and competition, banks' digitization contributes to green credit through external fintech and industry competition. In addition, the facilitating effect of this relationship is more pronounced under state-owned banks, large banks, loose monetary policy, and strong financial supervision.
FINANCE RESEARCH LETTERS
(2023)
Article
Ophthalmology
Celine Trigaux, Sabine Salla, Jan Schroeter, Theofilos Tourtas, Henning Thomasen, Philip Maier, Olaf J. C. Hellwinkel, Ilka Wittmershaus, Patrick R. Merz, Berthold Seitz, Bernhard Noelle, Norbert Schrage, Sigrid Roters, Melissa Apel, Andrea Gareiss-Lok, Constantin E. Uhlig, Sebastian Thaler, Florian Raber, Daniel Kampik, Gerd Geerling, Johannes Menzel-Severing
Summary: During the COVID-19 pandemic, German eye banks have implemented measures such as reducing donor recruitment and additional diagnostic screening to address potential risks associated with corneal donation.
CURRENT EYE RESEARCH
(2021)
Article
Economics
Javier Bianchi, Saki Bigio
Summary: We have developed a tractable model to study the credit channel of monetary policy, which includes an over-the-counter interbank market for banks' liquidity management. Our research shows how monetary policy affects the banking system by changing the trade-off between profiting from lending and facing greater liquidity risk. We present two applications, one examining the connection between the implementation of monetary policy and the pass-through to lending rates, and another analyzing a quantitative decomposition of the collapse in bank lending during the 2008 financial crisis. Our analysis highlights the importance of liquidity frictions and the functioning of interbank markets for the conduct of monetary policy.
Article
Business, Finance
Matthieu Chavaz, Pablo Slutzky
Summary: Using online search data, this study finds that UK banks responded to spikes in attention during the Global Financial Crisis by increasing retail deposit rates, particularly for instant withdrawal deposits. The response was observed even when the spikes were not justified by underlying fundamentals. Furthermore, the study shows that bank response was amplified in the presence of a lack of deposit insurance and a larger proportion of wholesale depositors.
