This article examines the effect of GDP growth on bank profitability in China over the period 2003-2009. The one-step system GMM estimator is used to test the persistence of profitability in Chinese banking industry. The empirical findings suggest that cost efficiency is positively related to bank profitability, while lower profitability can also be explained by higher taxes paid by banks. In a...

This paper takes an explorative search into merger activity in the Nigerian banking industry and its impact in the sustenance of shareholder value via sound corporate governance structure. An attempt is made to draw lessons from United States experience in merger activity in the Nigerian banking industry which has as at the time of study recorded twenty -five (25) successful mergers arising fro...

I n recent years, important changes to the U.S. banking regulatory framework have been introduced that were expected to affect the size distribution of banks. These changes in regulation had a clear objective: to allow for a higher degree of horizontal and vertical integration in the banking industry. While horizontal integration takes place when different firms that are producing the same prod...

In recent years, the increased concentration of activity in the banking system has received much attention. This paper studies the implications of concentration in the banking sector for economic activity. Changes in the competitive structure affect investment, risk-sharing, and social welfare. A key aspect of our analysis is that banks in more concentrated systems allocate a lot of resources t...

The purpose of this paper is to assess the sequence of technological changes occurred in the retail banking sector of the United Kingdom against the emergence of customer services by developing an evolutionary argument. The historical paradigm of Information Technology provides useful insights into the ‘learning opportunities’ that opened the way to endogenous changes in the banking activity su...

This paper presents a brief overview of developments currently taking place in the Australian banking sector relating to the measurement and management of credit risk. Section I provides, as background, a sketch of the structure of banking in Australia. Section II considers some of the forces operating within the Australian banking and financial system to increase the significance of credit and...

What is the impact of a bank failure on the whole banking industry? To resolve this issue, the paper develops a transfer entropy-based method to determine the interbank exposure matrix between banks. This method constructs the interbank market structure by calculating the transfer entropy matrix using bank stock price sequences. This paper also evaluates the stability of Chinese banking system ...

This paper analyses structural and cyclical determinants of banking profitability in 16 Western European countries. We find that financial structure matters, particularly through the beneficial effect of the capital market orientation in the respective national financial system. Furthermore, higher diversification regarding banks’ income sources shows a positive effect. The industry concentrati...

Using both bankand country-level data on banking sectors from 70 countries over the period 1992–2006, this paper empirically investigates the joint homeand host-country effects of banking market structure, macroeconomic condition, governance, and changes in bank supervision on foreign bank margins. We find that foreign banks are more profitable than domestic banks when they operate in a host co...

E-banking has become a new way of doing business and an important alternative for many banks and their customers. The acceptance of e-banking is affected by several factors, including the personal attitude of the users that influences normality and the context in which it is used. This study examines 150 customers of four major banks in Brunei Darussalam to explore the behavioral intent of the ...