In this dissertation, we first examine the relationship between performance of the bank holding company and several board characteristics. We use five proxies for bank performance including Tobin’s Q, ROA, loan loss reserve ratio, non-performing asset ratio, and net charge-offs ratio. Board characteristic variables we include are board size, proportion of outsiders, CEO power, CEO tenure and board tenure. We find that a large board enhances bank performance, as proxied by Tobin’s Q and loan quality variables. We find no evidence that board structure or CEO power influences firm performance. We see that CEO and board tenure have a positive effect on firm performance. We further employ a crisis dummy during the period 2007 through 2009 to determine if the relationships between firm performance and board characteristics changed during the crisis. Our crisis results show us that board size has a negative effect on Tobin’s Q and the non-performing asset ratio during the crisis. Further, we find that board structure decreases the non-performing asset ratio during the crisis. We next examine the relationship between risk-taking of the bank holding company and several board characteristics. We use four accounting based proxies for bank risk-taking including credit risk, liquidity risk, capital ratio and operational risk. We also use three market based proxies for bank risk including market beta, idiosyncratic risk and the standard deviation of its stock return. Board characteristic variables we include are board size, board independence, CEO duality, CEO tenure and board tenure. We find that a large board reduces both balance sheet and market risk. We further investigate the relationships between risk-taking and board characteristics changed during the financial crisis of 2007-2009. We find that our results are robust during the crisis.

Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. Credit risk has always been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affaires of the other partner. The axle of this study is to have a clearer picture of how banks manage their credit risk. In this light, the study in its first section gives a background to the study and the second part is a detailed literature review on banking and credit risk management tools and assessment models. The third part of this study is on hypothesis testing and use is made of a simple regression model. This leads us to conclude in the last section that banks with good credit risk management policies have a lower loan default rate and relatively higher interest income.

Many Chinese commercial banks have experienced ownership transitions during the past decade, along with significant improvements in performance. In order to examine the effect of ownership on bank performance, an empirical study of Chinese commercial banks is performed. A dataset covering 16 Chinese commercial banks over the period of 2002 — 2011 is tested using linear regression model and principle component analysis. It is found that being a Joint-Stock Commercial Bank has a positive effect on earnings per share (EPS), and being a City Commercial Bank increases return on assets (ROA). On the contrary, operating as a Stated-Owned Commercial Bank affects both EPS and ROA negatively. The empirical results also indicate that undergoing initial public offering on the Hong Kong Stock Exchange helps a bank to improve performance, while the listing in Mainland China does not.

¡§The Financial Institution Merger Act¡¨ and ¡§Financial Holding Company Act¡¨ were legislated in 2000 and 2001 in Taiwan. Based on those Acts, there are 14 financial holding companies established till now . Except for Waterland Financial Holdings, the other 13 financial holding companies include banking industry business. It is obvious that the performance of bank does influence the performance of financial holding company. Bank joins in financial holding company hoping to provide ¡§one-stop shopping¡¨ diverse financial commodities to consumers through joint-marketing, sharing resources and equipment, and hoping to gain ¡§Cross Selling¡¨, ¡§Cost Savings¡¨ and ¡¨Capital Efficiency¡¨ performance¡]3C performance¡^. It expects to pursue broadly business scope and gain more profits through this business model. The research uses Mann-Whitney test of non-parametric statistics to examine the performance of the banking subsidiary of financial holding company in order to understand whether banks can gain expected efficiency after joining in financial holding company. The empirical results are listed as follow¡G First, the ¡§cross-selling¡¨ performance of the banks after joining in financial companies is better than those before joining in financial companies. While there are no significant differentials in ¡§cost-saving¡¨ and ¡§capital-efficiency¡¨ performance. Second, the ¡§profit ability¡¨ performance of the banks after joining in financial companies is better than those before joining in financial companies. Third, there are no significant differentials in growth ability between the banks after joining in financial companies and those before joining in financial companies. Fourth, the cross-selling performance and profit ability of the individual banks such as the Chinatrust Commercial Bank, Taishin International Bank, The International Commercial Bank of China, Cathay United Bank, Taipei Fubon Bank and E.Sun Bank after joining in financial companies is better than those before joining in financial companies. Fifth, the performance of ¡§cost-saving¡¨; ¡§profit ability¡¨; ¡§growth ability¡¨ and ¡§asset quality¡¨ of the banks affiliated to the financial holding companies is better than those not affiliated to the financial holding companies. Sixth, the overall performance of the banks affiliated to the financial holding companies is better than those not affiliated to the financial holding companies. But not all of the banks affiliated to the financial holding companies after joining in financial companies perform better than before. So the banks not affiliated to the financial holding companies can grasp their own niches and enforce core business. They can develop better than before even though their scale not big enough.

Bank performance is one of the vital issues for the healthy functioning of the Turkish economy. This study aims to measure performance levels of the banks in Turkey and to find the factors affecting those levels for the period of 2006-2010. Although the measures evaluating bank performance are ample in amounts we choose two different approaches: Data Envelopment Analysis (DEA) measuring bank efficiency and CAMELS analysis. DEA is carried out in different levels: first for top 14 banks in the economy / then separating the banks as the state banks, the domestic private banks and the foreign private banks. Also long term and short term, and public and non-public assets and liabilities distinctions are made in the analyses. The bank performance measures obtained from DEA and CAMELS analysis are compared and the factors affecting the performances of the Turkish banks are analyzed. The results show that high efficiency levels of the state banks decrease when the public assets and liabilities are excluded. The state banks and domestic private banks have high CAMELS&#039 / ratios, while the foreign banks have low ones. Both the bank-specific and macroeconomic factors, like ownership type, publicly trading and ATM net, play important roles in the determination of the efficiency levels of the banks in Turkey.

<p>Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. Credit risk has always been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affaires of the other partner.</p><p>The axle of this study is to have a clearer picture of how banks manage their credit risk. In this light, the study in its first section gives a background to the study and the second part is a detailed literature review on banking and credit risk management tools and assessment models. The third part of this study is on hypothesis testing and use is made of a simple regression model. This leads us to conclude in the last section that banks with good credit risk management policies have a lower loan default rate and relatively higher interest income.</p>

Central and Eastern Europe(CEE) is the region where the ownership of banks has been through the most fundamental and massive changes during the past two decades. This paper analyses the role of state-ownership in commercial banks, whether and why state ownership imposes negative effects on commercial banks in CEE transition countries, through both theoretical arguments and empirical testings. The thesis summarizes previous literature and analyses the role of banking ownership and performance, particularly though a dynamic view of the banking privatisation process. It investigates the reasons why state-owned banks are harmful in CEE countries from a corporate governance point of view. Followed by empirical tests on this topic, including banking production efficiency measurement using Stochastic Frontier Analysis and second-stage regression analysis about the effects of ownership on banking efficiency and asset quality. This paper finds out that the state ownership of banks imposes negative effects on bank performance and hinders successful privatisation of enterprises. Banking production efficiency has been improving greatly in late 1990s and stayed at a constant high level in 2000s. Through panel data regressions, we find the negative effects of state-ownership on banking production efficiency and asset...

It is widely accepted that banks are one of the most significant financial intermediaries in any economy, facilitating the flow of capital between savers and borrowers. While this may be the case in many advanced economies, including the US, little research has been done on how the quantitative easing (QE) program of central banks affects bank performance. This paper examines the impact of the Federal Reserve’s (the Fed’s) quantitative easing (QE) policies and announcements on bank stocks in the United States (US) during the Covid period. While we do not dismiss the role of investor sentiment, we discover that QE interventions improved bank stock returns albeit with a lag in the case of balance sheet expansion. Furthermore, the impact varied with a greater response from banks with stronger balance sheets. Banks with weaker balance sheets were more sensitive to QE interventions as well. These findings have practical implications for policymakers, regulators, banks and market participants to make informed decisions during crises

Since the economic reform was initiated in 1978, the Chinese banking sector has undergone significant changes, particularly during the period under our investigation. This is primarily induced by the WTO entry in 2001, which brought in to full openness the financial market in China. The ultimate objective of the recent banking reform is to promote competition and efficiency as a way of improving the overall competitiveness and banking performance, in order to cope with challenges from foreign competitors. With the purpose of examining whether the recent banking reform is effective in achieving the targets as well as suggesting future policy directions, this study investigates market competition, cost efficiency and profitability in the Chinese banking industry over those critical years (1997-2006) before and after the WTO entry. We first employ both structural (the SCP) and non-structural (the Panzar-Rosse) approach to evaluate market competition. Then we estimate cost efficiency for Chinese banks under the Stochastic Frontier Approach (SFA). Finally, we assess the relationship between profitability and market structure under the structure-performance hypothesis and the efficient-structure hypothesis. Our findings show that Chinese banking market become less concentrated and more competitive since the WTO entry. Chinese banks improve their cost efficiencies, with state-owned banks are the least efficient while joint equity banks are the most efficient. The explanation for the relationship between profitability and market structure is quite mixed. The acceptance of which hypothesis depends on which dependent variable is used.

This thesis deals with both theoretical and practical aspects of banking fee and commission income in the European Union. Since fee income represents the largest part of non-interest income earned by banks, it remains a major challenge for bank management to set and maintain an appropriate fee policy. Nevertheless, solving for the optimal fee structure has not yet been accomplished either on a theoretical level, or in actual practice. In the thesis, we analyse fee income in EU banking sectors. Our results show that the Czech banking sector was not abnormally dependent on fee income compared to other EU countries in the period 2007-2012. As a result, we argue that the high profitability of Czech banks cannot be attributed to abnormal banking fees and commission income, but rather other factors should be considered. Moreover, we study the determinants of fee income share in individual banks and discuss the impact of market concentration on the magnitude of banking fees. We conclude that banks facing higher competition tend to expand more aggressively into non- traditional activities and therefore they report higher fee income shares. We also study the relationship between banking fees and banks' performance. The results are mixed depending on applied profitability measure, but in general, banks with...