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Research in banking assumes that the production function is either parametric or deterministic in nature. This thesis develops a novel method for the parametrization of efficient frontiers, generalized frontier analysis (GFA), which uses artificial neural networks and the theory of asymmetric loss functions from forecasting to relax these assumptions. Results show that GFA can validly parametrize cost- and shareholder value efficiency (SHVE). This thesis also validates the SHVE concept by demonstrating that SHVE scores are more informative than managerial ability in explaining bank value creation. Moreover, the work examines conflicting theoretical predictions about the relations between opacity, fragility and bank intermediation. These are disentangled using measures of bank opacity and liquidity creation from the recent literature. Since available opacity and liquidity creation proxies may not be mutually exclusive, there is the danger of obtaining trivial regression coefficients. Therefore this thesis focuses on intermediation quality, which is operationalized using efficient frontiers. Results show that both opacity and fragility improve the intermediation quality of banks. Finally, this thesis investigates whether and how bank intermediation activity and managerial ability are related. This thesis hypothesizes, and the data supports, the notion that more able bank managers are both better liquidity creators and more avid risk takers. In addition, the interaction of liquidity creation and managerial ability in crises has thus far not been addressed. While empirical studies suggest that liquidity creation may increase during crises, theory predicts that it may be optimal for banks to reduce intermediation. Analysis shows that more ably managed banks reduce intermediation and risk during the financial crisis as hypothesized. Overall, this thesis contributes to the banking and efficiency literatures by shedding light on heretofore unaddressed questions regarding the intermediation, managerial ability, shareholder value efficiency and opacity of banks and by developing a new method for the parametrization of efficient frontiers.

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Uncertainty is an important determinant of economic developments at both micro and macroeconomic levels. The main objective of this thesis is to examine the effects of economic and model uncertainty, paying close attention to financial factors as a key mechanism that propagates and amplifies business cycle movements. The first part of the thesis studies the impact of uncertainty on bank assets portfolios allocation. In chapter 1 I do this empirically by estimating a set of vector autoregression models. I show that a positive shock to uncertainty leads to reallocation of portfolios by commercial banks: they reduce issuance of business loans, while increasing the stock of safe assets - cash and Treasury and agency securities. I also demonstrate that when risk, uncertainty and balance sheet factors are controlled for, business loans decrease after monetary tightening, what allows to resolve the puzzle raised by den Haan et al. (2007) that business loans increase following monetary contraction. In chapter 2 I examine the relationship between economic uncertainty and asset portfolio allocation of banks in a theoretical model. The model incorporates a portfolio-optimizing banking sector facing non-diversifiable credit risk, where banks’ attitude to risk and expected profitability help to explain the endogenous movements of the risk premium. The premium charged by risk-averse banks provides self-insurance from profitability reduction brought about by heightened uncertainty about entrepreneurial productivity. Financial accelerator mechanism amplifies the portfolio reallocation effect of uncertainty shock. In the second part of the thesis I study how financial frictions affect robustness of monetary policy rules in New Keynesian models in case of model uncertainty. I demonstrate that when there is uncertainty about what type of financial frictions is at work, a policymaker exposes economy to risks of significant welfare losses by using a reference model without frictions as an economy representation.

'Level-playing field' is an expression used by regulators in expressing the fair treatment of financial institutions. 'Level-playing field regulations' is also a representation of benchmark-setting in response to the complexity and diversity that exists in the financial system. Nonetheless, such a notion has never been precisely defined thereby bringing into question the usefulness of this idea. Therefore, the aim of this research is to examine the concept of level-playing field regulations. In particular, this research investigates level-playing field regulations for retail Islamic banks in the United Kingdom and Malaysia - two notable examples where level-playing field has been expressed in regulatory reforms. A comparative law methodology is employed, and a criterion judging whether there is (i) 'equality before the law'; and (ii) 'a fair opportunity to compete' is established to test whether a level-playing field exists. This research is the first to determine the extent to which retail Islamic banks can be considered to be operating within a level-playing field. One of the significant findings from this study is that the regulators in the UK and Malaysia have not fully enabled level-playing field regulations for retail Islamic banks. It is also inferred that due to the complexity of the financial system, exposure to risks and the nature of law, the regulatory environment for the banking system does not allow the level-playing field regulations to be effective. Therefore, level-playing field regulation is not a useful concept. By challenging the existing regulatory framework, this research provides pivotal insights to regulators and scholars on the criterion, challenges and impact of levelplaying field regulations. This research will encourage the reconsideration of using this concept.

This research is the first organisational case study conducted on a Canadian Financial Service Industry (CFSI) organisation faced with the widening advice gap stemming from the new financial regulations. The advice gap is an industry term used to refer to those investors who do not obtain financial advice from a financial advisor, because their investment account is too small or because they are unwilling to pay fees for advice. The aim of the research is to provide evidence to facilitate the development of options for financial advisors, at various stages in their career, to assist them with adjusting to the new regulations, thereby reducing the advice gap. A single case study methodology was used to examine the impact of the regulations in a real-organisational setting. The objectives were to interview advisors, clients, and executives of the organisation being studied (XYZ), and other external stakeholders to obtain their perspectives concerning the regulations as they relate to the advice gap. Themes were derived from the interviews, facilitating the development of an e-mail survey questionnaire sent to the entire population of XYZ advisors. The survey data was analysed using regression on the age and tenure of advisors, as well as statistical to obtain qualitative and quantitative data. From the interviews and survey data, evidence was provided which facilitated the development of advisor options for reducing the advice gap, based on the age and tenure of the advisor and whether they worked as a sole practitioner or as part of a team-based practice, allowing them to select the options relevant to their situation. The executive team was presented with these options and interviewed again, allowing for additional feedback that would assist with moving the research into practice. Advisor options were: using Robo-advisor technology, the use of asset allocation in developing portfolios, collaboration within the entire organisation, client segmentation, online meetings, team-based practices, hiring a junior advisor, and the use XYZ’s National Accounts Team. Executive options were: improving XYZ’s fee-based platform, expanding and improving the National Accounts Team, continuing to explore and develop Robo-technology, improving entrepreneurial collaboration, providing advisors with asset-allocation tools, and improving support for advisors considering the move to a team-based practice. The ageing advisor demographics and the largest intergeneration wealth transfer that will take place in Canada make the investors with a small investment account (ISIA) relevant for advisor consideration. This segment will, through their personal accumulation or inheritance, become the large investment accounts in the future. The literature review examines similar regulations enacted in other countries. It also explores how Complex Adaptive Systems theory can assist the organisation with adapting to the new financial regulations. Given the entrepreneurial spirit of XYZ, the theory of intrapreneurship was examined, providing insights to develop creative and innovative solutions to address the advice gap. Technology was examined as it is disrupting the CFSI. This research will benefit members of the CFSI by reducing the advice gap and can provide insights to those in other countries facing similar regulatory changes.

Retail banks globally are under the threat of reducing profitability driven by a harsh operating environment. They are facing many challenges including greater competition from non-banking entities, stricter regulatory requirements, more knowledgeable and demanding customers and speed of innovation in terms of new products and services. Customer relationship management (CRM) remains a recognised source of competitive advantage but questions still abound about how it can be deployed effectively and for the benefit of both the customer and the bank. Knowledge management (KM), on the other hand, is also a proven source of competitive advantage and this study uncovers how KM can be used to enhance CRM in order to improve profitability at SBM. This study explored how KM can be deployed to enhance CRM as well as how this resulted in improvement of customer service and satisfaction indices as well as profitability, sales, customer retention and growth in customer base. The sales and customer service teams formed the primary subjects of this study and key productivity measures such as profitability; customer satisfaction as measured through NPS and CEBS, sales trends by segment and customer cross sell ratio by segment were tracked as the output. However, multi-disciplinary teams across Standard Bank in Malawi (SBM) as well as Standard Bank Group (SBG) were involved in designing the solutions to customer issues identified. A framework that combines CRM and KM, the MKC Relationship Management was developed as part of this study through literature review. The MKC Relationship Management framework was then tested through cycles of action research where a plan was developed in the first cycle, tested in the second cycle and this was followed by planning for a third cycle. The results of each cycle were measured and tracked over a period of time before being reviewed for impact. The final planning cycle was undertaken to see how further improvements could be made to the framework. The study adopted a critical theory philosophy and the approach was deductive in nature because current theories of KM and CRM were applied to the specific situation at SBM. Qualitative data collection methods were used within the two cycles of AR which included: three in-depth interviews with the heads of the business units within PBB, two focus group discussions (with the business bankers as well as the service teams) and document analysis of past research and project documents were among the qualitative data collection methods used. The data collected from all these sources was analysed using the thematic analysis method. The study resulted in a contribution to knowledge which was both conceptual and practical in nature. The MKC Relationship Management framework contributed to the ever growing theoretical knowledge of how KM and CRM can be integrated. Apart from this, the practical contribution was in the form of increased profitability in SBM Retail Banking, a structured manner of resolving issues that were resulting in negative customer experience. In addition to this, a thematic analysis approach to data analysis was applied in a banking research in Malawi. Further, a home grown IT system known as the I-serve system was commissioned at SBM and put to use to drive business results. The use of social media was also tested in order to take advantage of this growing technological revolution to drive business results using the mobile phone as a catalyst of knowledge sharing. This was among the first formally studied researches into use of such media for business in Malawi.

This thesis is about the European Bank for Reconstruction and Development (EBRD) and its role and strategies in the governance of gender relations. Constructing a feminist political economy approach, the thesis examines the process of developing and implementing policies on gender mainstreaming, as it relates to wider processes of institutional change and economic innovation at the EBRD. The central argument made throughout the thesis is that the objective of gender equality has been co-opted to support the EBRD’s policies and strategies for market expansion.

During the past two decades fighting corruption became an important objective of manifold international and transnational actors. Yet this powerful international anticorruption agenda has so far avoided detailed scholarly scrutiny of the ways in which it potentially contributes to the construction and advancement of particular societal ideals. This thesis addresses this lack of systematic engagement by conducting a detailed empirical analysis of the international anticorruption discourse expressed in the form of anticorruption practices of the World Bank, Transparency International and the United Nations Development Programme on the strategic policy level. Adopting a post-Marxist discourse and hegemony theoretical perspective based on the work of Laclau and Mouffe, Nonhoff as well as Howarth and Glynos, it interrogates the international anticorruption discourse with regards to the kinds of societal ideals it constructs, the ways in which they are advanced, and the extent of consensus surrounding these ideals. The thesis traces the surprisingly coherent ways in which the discourse is structured by a particular conception of human nature as self-interested and rational and centres on the manipulation of individual behaviour via institutional and cultural incentive structures. Importantly, it shows how this elevates the securing of governing processes that guarantee the stable pursuit of individual economic interests to the very purpose of societies. As the thesis demonstrates, this hegemonic project is expanded through the accommodation of a wide range of positively connoted concepts, anticorruption co-operations between powerful social actors, reliance on an objectivist kind of knowledge, and the elaborate construction of corruption as the enemy of a good society. While international anticorruption discourse is found to be broadly reflective of what can be called advanced liberal ideals of governing, the thesis enables an in-depth understanding of the manifold and complex discursive moves through which these particular ideals are constructed and advanced by the discourse.

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