Hassan Obeid

In this article, we apply the GMM technique on dynamic panels, using both bank-level data and country-level data for the three largest European economies (Germany, the U.K. and France) during the period 2005- 2013 to investigate the impact of regulation, supervision and the business cycle on capital buffers, banking profitability and the risk of failure. Our results provide three major findings. First, the regulation indicators have a negative impact on bank profitability. When the supervisory authority imposes restrictions on banking activities, managers become more risk-averse, the banks risk-taking decreases and, as a consequence, profitability decreases. Second, the measures adopted by the Basel Committee on Banking Supervision (the Basel III Accord) regarding the management of capital buffers over the business cycle are very important in order to fortify the banking systems stability. Third, regulation and supervision perform differently, depending on the indicators of profitability and the risk of failure.

Abstract

In this paper, we investigate the effects of regulation and supervision on the banking performance of the ten largest banks from selected European countries during the period of 2005-2011 using the Generalized Method of Moments (GMM) for a dynamic panel. Our results provide two major findings. First, with regard to influencing factors, regulation and supervision perform differently. In particular, restrictions on banking activities, supervision, deposit insurance and private monitoring have different impacts on banking performance, depending on the indicators of profitability and risk taking. Capital requirements decrease banking profitability, but the market structure boosts Return On Equity (ROE). Second, neglecting the influencing factors, we find that restrictions on banking activities, supervision, private monitoring and market structure increase profitability and reduce risk taking by European banks. We conclude that for the successful implementation of banking regulation and supervision, it is crucial to consider bank-level and country-level factors. In addition, the effect of regulation and supervision on banking performance is conditioned by the improvement of banking governance in Europe.

In recent years artificial intelligence has entered a new era, which gives rise to many hopes for powerful states such as the United States and China. In this paper, we analyze the importance and role of artificial intelligence in technological development in each of the two countries on the one hand, and its influence on China-American relations in terms of technological and geopolitical conflict. To get the right results, we rely on a literature review of dozens of articles published on the phenomenon in order to compare the power of artificial intelligence between the United States and China where we found that the US still has technological strength, especially in the field of artificial intelligence, but we can say that a large force is beginning pose a threat for it which is China that has great technological capabilities so, we can say that the United States should work more in this field. Also, we found that artificial intelligence has a primary goal in both countries, it helps China to achieve its ambitions to be the leader of the world, and this intelligence, on the other hand, provides protection and security to the United States. This paper is divided into three sections. The first section focuses on the importance of artificial intelligence in achieving China’s ambitions, the second section explains the role of artificial intelligence in the US protection service, and the third section describes the technological and geopolitical conflict resulting from the competition in artificial intelligence between these two countries.

The paper is devoted to development of evaluation of the bank business management efficiency in the system of financial relationships of their stakeholders. Non-achievement the required level of value-added banking business we divided into two groups: 1) associated with irrationality of constructing system of financial relations with their stakeholders; 2) related to the common for homogeneous group of banks problems with adaptation to national con-ditions of conducting banking business. In a sample of 1228 Ukrainian banks, we find that domestic banks are more adapted to the conditions of banking system although in long run foreign banks are more efficient.

The paper analyzes the financial support for social protection in Ukraine compared with European Union countries, in particular the structure and dynamics of social expenditures, their relationship with key macroeconomic indicators were considered. Overall directions of changes in social protection system for bringing about an alignment with the basic European standards were proposed per analysis performed.

Abstract

Purpose – The purpose of this paper is to identify the main factors influencing the adoption of Islamic banking services in Tunisia.

Design/methodology/approach – The paper presents primary data collected by self-administered questionnaires involving a sample of 239 respondents located in Tunis city. Respondents were conventional banks’ customers who were actually non-users of Islamic banking. A descriptive statistical analysis was conducted to determine consumers’ awareness of Islamic banking.

Findings – The results revealed that Islamic bank reputation, relative advantage of Islamic banking and its compatibility with consumer religious beliefs, values, lifestyle and banking habits influence positively the intention to use it. However, it seems that perceived complexity and risk impact negatively the consumer intention to adopt this new financing system. The major finding of this study is that there is a general lack of consumer awareness about Islamic banking in Tunisia.

Practical implications – By identifying the drivers and inhibitors of Islamic banking acceptance among potential adopters, this research aim to help banks’ managers to target their actions and strategies more effectively.

Originality/value – This study is one of the earliest to be conducted on customers’ perception and willingness to adopt Islamic banking services in Tunisia. It makes a contribution to the Islamic banking adoption literature by extending and testing the diffusion innovation theory (Rogers, 2003) in the context of Tunisia.
Keywords Consumer behaviour, Developing countries, Behaviour, Banking, Consumer attitudes, Customer surveys

Abstract

This paper seeks to identify the main factors influencing the adoption of Islamic banking by conventional bank customers in Tunisia. Based on a primary data collected by self-administered questionnaires involving a sample of 239 respondents located in Tunis City, the results of this study demonstrate that religious commitment, the amount of information held by consumers about Islamic finance, the relative advantage of Islamic banking and its compatibility with consumer values, lifestyle, and banking habits are predictors of its adoption. However, it is worth noting that social influence does not have any effect on customers’ decisions to use this new banking service. The findings also reveal that there is a general lack of information about the Islamic banking among Tunisian consumers. By identifying the drivers of Islamic banking acceptance among potential adopters, this paper aims to help bank managers target their actions and strategies more effectively.

Abstract

The methodological approach to the assessment of bank-insurance integration (BII) level in Ukraine based on the calculation of integration index using of binary characteristics and matrix analyses instruments is given in the following paper. The proposed approach considers the presence of part (full) integration of bank capital and insurance companies, and the connection between these financial intermediaries in spheres of life and risk insurance in terms of the absence of their mutual participation in capital (bancassurance). Our findings evidence a low value of BII level in Ukraine during 2002-2013 in conditions of the gradual integration processes’ acceleration and the appearance of new innovative forms of bank-insurance cooperation.

Abstract

The aim of this article is to study linkages between equity and information technology sector prices. We thus investigate the price adjustment dynamics of the Information Technology (IT) sector in response to the 2007–2009 worldwide market shock for two representative developed countries (France and the USA). Using a Vector Autoregression (VAR) methodology and different econometric specifications of a smooth transition Error-Correction Model (ECM), we find significant price reactions from the USA and French IT sectors to changes in the global capital markets over the period between 11 February 2005 and 9 July 2009. The IT price response is however stronger for the USA than for France. The empirical results suggest that the IT price convergence process towards equilibrium is typically asymmetric and nonlinearly mean-reverting for the USA.

Abstract

This article investigates the return behavior of privatization initial public offerings (PIPOs) in Europe over both the short- and long-run horizons. Using data from a sample of 162 PIPOs over the period 1986-2008, we show that European PIPOs outperform, in terms of risk-adjusted abnormal returns, a benchmark market index and a portfolio composed of 162 European private IPOs, regardless of the horizon of analysis. Our results are important for both investors and policymakers with respect to their investment and privatization decisions, and also allow a better understanding of the financial performance behavior of the privatized state-owned enterprises.

Abstract

The purpose of this study is measuring the productive efficiency of Islamic and conventional banks operating in the GCC over the period 2005-2010. Data Envelopment Analysis was used to measure technical efficiency, allocative efficiency and cost efficiency. No significant differences were found between Islamic and conventional banks in terms of productive efficiency. Besides, the findings indicate that the efficiency of banks in our sample is determined by internal and external factors such as size, risk, profitability and the economic environment.

Abstract

The aim of this paper is to assess the impact of privatization on the performance of privatized firms. The sample included 56 European firms over the period of 1996-2005. The methodology involved (1) comparing the ratios of privatized firms three years before and after privatization (Megginson et al., 1994) and (2) comparing the ratios of privatized firms with a sample of similar private firms three years before and after privatization (Albouy & Obeid, 2007). The ratios used in the study were consistent with the International Financial Reporting Standards. The results indicate that privatization had a positive impact on the ratios, although the effect was not statistically significant.

Abstract

The impact of privatization on the operational performance of privatized firms is a subject that has been of great interest in recent finance literature. Most of the existing works on this area use conventional variables and compute financial ratios of profitability, productivity, investment, debt and employment in analyzing data for financial management.

This paper however attempts to determine the effects of privatization on the stock performance of privatized firms, and adopts a comparative approach between stock exchange performance of the privatized firms and the private firms’ benchmarks, using data from the period of 1986 to 2005. It is observed from such an approach that the privatized firms have a remarkably higher performance compared to the private firms.

Abstract

The purpose of this paper is to propose a method to evaluate the productive performance of Islamic banks operating in the GCC region, over the period 2005-2008. Thus, we evaluate the productive performance of Islamic banks with the technique of productive efficiency proposed by Farrell (1957). We use the method of data envelopment analysis (DEA) to decompose the productive efficiency into technical efficiency, allocative efficiency and cost efficiency. The application of this technique on a sample of 23 Islamic banks reveals that the technical inefficiency and allocative inefficiency increased bank costs, on average, by about 14% and 29% respectively. In addition, the results show that internal and external factors seem to contribute significantly to the evolution of efficiency scores of Islamic banks operating in the GCC region.

Abstract

Les déficits budgétaires de nombreux pays, la faiblesse des performances financières des entreprises publiques et les développements récents de la recherche en finance incitent de nombreux États à céder leurs entreprises au secteur privé. Après un panorama du mouvement de privatisation dans le monde et particulièrement en France ainsi qu’un exposé des principaux courants théoriques qui confortent ce mouvement, cet article expose les résultats d’une étude empirique réalisée sur les privatisations françaises. Au cours de la période 1986-2004, nous trouvons que le transfert de propriété du secteur public au secteur privé a une incidence positive sur la performance des entreprises privatisées. La performance est évaluée à partir d’analyses de ratios de rentabilité, de productivité, d’investissement et de financement.

Analyse de la crise libanaise d'un point de vue financier.

Il ressort que certains contrats des banques islamiques et le modèle occidental du capital risque sont basés sur le même concept. La banque comme la société de capital risque apporte le financement, partage le risque et le gain, exige des critères de sélection des investisseurs, fait des analyses rigoureuses de la situation économique en général et du secteur du projet en particulier, fait des études de marché, supervise le déroulement du projet, sort en général au bout d’une certaine durée etc. Au sein d’un système économique islamique, ces contrats comme la musharaka, l’Istisna’a peuvent assurer un financement conséquent aux nouveaux projets et assurer un décollement économique comme celui qu’a stimulé le capital risque dans certains pays occidentaux. Toutefois, les contrats participatifs des banques islamiques ne peuvent contribuer à eux seuls à un financement suffisant des entrepreneurs. D’autres institutions plus adaptées à supporter les risques élevés doivent être développées, en l’occurrence des sociétés de capital risque islamiques qui opèrent en synergie avec les banques islamiques et dans le cadre d’un marché boursier et secondaire évolués.

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