Browse
Submit Data
Databases
API
Help

Dataset Information

0 Views

0 Connections

0 Citations

0 Reanalyses

0 Downloads

Omics score: 0

Scale effects on efficiency and profitability in the Swiss banking sector.

ABSTRACT: This paper analyzes efficiency and profitability in the Swiss banking sector over the period 1997-2019. We find strong evidence for scale economies: for most banks in the sample, efficiency and profitability increase with bank size. Using an instrumental variables strategy for a subset of geographically restrained banks, we find that the effect of size on efficiency and profitability is likely causal. Scale economies have been more pronounced since 2010 than in the years prior to the global financial crisis. There is little evidence for scale economies for the largest (systemically important) banks; their relatively lower efficiency and lower profitability appear driven by certain aspects of their business model. Our results further indicate that good capitalization and high efficiency and profitability are compatible.

Supplementary information

The online version contains supplementary material available at 10.1186/s41937-022-00091-7.

SUBMITTER: Blatter M

PROVIDER: S-EPMC9080912 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature

ACCESS DATA

Json Xml

Publications

Scale effects on efficiency and profitability in the Swiss banking sector.

Blatter Marc M Fuster Andreas A

Swiss journal of economics and statistics 20220509 1

This paper analyzes efficiency and profitability in the Swiss banking sector over the period 1997-2019. We find strong evidence for scale economies: for most banks in the sample, efficiency and profitability increase with bank size. Using an instrumental variables strategy for a subset of geographically restrained banks, we find that the effect of size on efficiency and profitability is likely causal. Scale economies have been more pronounced since 2010 than in the years prior to the global fina ...[more]

PMID: 35573144

Similar Datasets

Profitability, marketability, and CSR disclosure efficiency of the banking industry in Bangladesh.

Project description:Using the Data Envelopment Analysis (DEA) approach, this study measures the profitability, marketability, and corporate social responsibility (CSR) disclosure efficiencies from 2012 to 2021 of listed banks in Bangladesh. The results show that Bangladeshi banks are, on average, inefficient in terms of all efficiencies, profitability (0.703), marketability (0.56), and CSR disclosure (CSRD) (0.903) over the sample period. Further, the study compared the three efficiencies between Islamic and conventional banks and found that conventional banks are more efficient than Islamic banks in terms of profitability and marketability at 5% and 8%, respectively, while, in terms of CSRD efficiency, Islamic banks are by 1% more efficient than conventional banks. Furthermore, ordinary least square (OLS) regression has been used to investigate the impact of financial constraints, political connections, and Shari'ah regulations on firm efficiencies. The results showed that financial constraints negatively impact the firms' all three efficiencies, while political connections and Shari'ah regulations negatively affect the banks' marketability efficiency. The findings advocate more compliance with corporate regulation and considerable contributions to CSR, leading to increased stakeholder loyalty and improved efficiency of banks. The findings provide insight for the banks' management to improve their efficiency level, investors and depositors to make proper judgments about their investment, and clients to compare among banks for better decision making. In addition, academicians and researchers have necessary insight from the DEA's noble use in Bangladesh's banking sector.

| S-EPMC9713341 | biostudies-literature

Green banking and profitability of banks in Nigeria: Opinions and attitudes

Project description: Not available

| S-EPMC11295855 | biostudies-literature

The mediating effects of self-leadership on perceived entrepreneurial orientation and innovative work behavior in the banking sector.

Project description:Innovative work behavior has been one of the essential attribute of high performing firms, and the roles of entrepreneurial orientation and self-leadership have been important for promoting innovative work behavior. This study advances research on innovative work behavior by examining the mediating role of self-leadership in the relationship between perceived entrepreneurial orientation and innovative work behavior. Structural equation modelling is employed to analyze data from a survey of 404 employees in banking sector. The results of reliability measures and confirmatory factor analysis strongly support the scale of the study. The results from an empirical survey study in the deposit banks reveal that participants' perceptions about high levels of entrepreneurial orientation have a positive impact on innovative work behavior. The results also provide support for the full mediating role of self-leadership in the relationship between participants' perceptions of entrepreneurial orientation and innovative work behavior. Additionally, this study provides some implications for practitioners in the banking sector to facilitate innovative work behavior through entrepreneurial orientation and self- leadership.

| S-EPMC5074951 | biostudies-literature

The challenge of phasing-out fossil fuel finance in the banking sector.

Project description:A timely and well-managed phase-out of bank lending to the fossil fuel sector is critical if Paris climate targets are to remain within reach. Using a systems lens to explore over $7 trillion of syndicated fossil fuel debt, we show that syndicated debt markets are resilient to uncoordinated phase-out scenarios without regulatory limits on banks' fossil fuel lending. However, with regulation in place, a tipping point emerges as banks sequentially exit the sector and phase-out becomes efficient. The timing of this tipping point depends critically on the stringency of regulatory rules. It is reached sooner in scenarios where systemically important banks lead the phase-out and is delayed without regional coordination, particularly between US, Canadian and Japanese banks.

| S-EPMC11387497 | biostudies-literature

FinTech adoption, HR competency potential, service innovation and firm growth in banking sector

Project description:This study investigates the role of service innovation as a mediator between FinTech adoption and firm growth. Furthermore, the study also explores the role of human resource competency in FinTech adoption. Survey questionnaires were given to participants in this study, which used a quantitative methodology and were distributed to fifty-five United States banks. A sample of 311 responses was collected and analyzed using Structural Equation Modeling (SEM). The results show that human resource competencies such as creating, adapting (to change), deciding to initiate action and interpreting analysis positively impact FinTech adoption. This study also discovered that service innovation contributes to firm growth. The findings confirmed the influence of human resource competencies on FinTech adoption in banks. This study suggests implementing effective human resource practices to develop employee competencies. Employee performance can be optimized to impact service innovation and business growth, which promotes the adoption of FinTech. The research adds to the body of knowledge already available by providing evidence of mediating role between FinTech adoption and firm growth.

| S-EPMC10006525 | biostudies-literature

The impact of religiosity on earnings quality: International evidence from the banking sector

Project description:We examine the impact of religiosity on earnings quality, utilising a global sample of 1283 listed banks headquartered in 39 countries and covering the period 2002–2018. Using instrumental variables two-stage least squares regressions, we demonstrate that religiosity has a significant positive impact on banks’ earnings quality. We further show that the impact of religiosity becomes more pronounced among banks headquartered in countries where religion is an important element of national identity and in countries with weak legal protection. We show that the effects of religiosity are more intense during the global financial crisis period. Overall, these findings support the notion that high religiosity tends to reduce unethical activities by managers and can function as an alternative control mechanism for minimising agency costs. Our empirical investigation is robust to alternative model and sample specifications.

| S-EPMC7529612 | biostudies-literature

Are Bank Employees Psychologically and Structurally Empowered? an Assessment from the Indian Banking Sector

Project description:The main purpose of our research is to seek insight into the antecedents of employee empowerment at both organizational and individual levels. We also address the outcomes of empowerment at the individual level. Subsequently, the research discusses the mediation effect of psychological empowerment on structural empowerment and its outcome as job satisfaction. A total of 400 samples were collected from the employees of public and private sector banks in India using an online questionnaire, during the Covid-19 pandemic period. To test the hypotheses, Confirmatory factor analysis (CFA) and path analysis were used. The study proved that the antecedents such as psychological and structural empowerment have a positive and significant effect on job satisfaction, while psychological empowerment partially mediates between structural empowerment and job satisfaction. This research attempts an integrative approach as suggested by the Social Cognitive Theory for predicting empowerment. We have used unidimensional constructs of psychological empowerment, structural empowerment, and job satisfaction in the Indian banking sector. This study contributes to both theory and practice by providing insights into the benefits of public and private sector bank employees which is gained through the implementation of empowerment policies during the Covid-19 period. Supplementary Information The online version contains supplementary material available at 10.1007/s10672-021-09393-z.

| S-EPMC8598101 | biostudies-literature

Does competition improve financial stability of the banking sector in ASEAN countries? An empirical analysis.

Project description:This study examines the influence of competition on the financial stability of the commercial banks of Association of Southeast Asian Nation (ASEAN) over the 1990 to 2014 period. Panzar-Rosse H-statistic, Lerner index and Herfindahl-Hirschman Index (HHI) are used as measures of competition, while Z-score, non-performing loan (NPL) ratio and equity ratio are used as measures of financial stability. Two-step system Generalized Method of Moments (GMM) estimates demonstrate that competition measured by H-statistic is positively related to Z-score and equity ratio, and negatively related to non-performing loan ratio. Conversely, market power measured by Lerner index is negatively related to Z-score and equity ratio and positively related to NPL ratio. These results strongly support the competition-stability view for ASEAN banks. We also capture the non-linear relationship between competition and financial stability by incorporating a quadratic term of competition in our models. The results show that the coefficient of the quadratic term of H-statistic is negative for the Z-score model given a positive coefficient of the linear term in the same model. These results support the non-linear relationship between competition and financial stability of the banking sector. The study contains significant policy implications for improving the financial stability of the commercial banks.

| S-EPMC5423589 | biostudies-literature

Domains of scale in cumulative effects of energy sector development on boreal birds.

Project description:ContextIndustrial development in Canada's boreal forest creates cumulative environmental effects on biodiversity. Some effects may be scale-dependent, creating uncertainty in understanding and hindering effective management.ObjectivesWe estimated cumulative effects of energy sector development on distributions of sixteen migratory songbird species at multiple spatial scales within the boreal region of Alberta, Canada, and evaluated evidence for scale domains in species responses.MethodsWe used a hierarchical, multi-scale sampling and modelling framework to compare effects of oil and gas footprint on songbirds at five spatial scales. We used Bayesian Lasso to facilitate direct comparison of parameter estimates across scales, and tested for differences in grouped parameter estimates among species.ResultsWe found consistent scale-dependent patterns across species, showing variable responses to development occurring at the smallest scale, little effect at intermediate scales, and stronger, mainly positive effects at the largest scales. Differences in grouped parameter estimates across scales showed strong evidence for scale domains in the response of songbirds to energy sector development.ConclusionsWe concluded that variable effects at the smallest scale represented individual habitat selection, while larger scale positive effects reflected expanding distributions of open habitat- and disturbance-associated species in areas of high oil and gas footprint. Our results show that single-scale analyses do not reflect population processes occurring at other scales. Future research on linking patterns at different scales is required to fully understand cumulative effects of land use change on wildlife populations.Supplementary informationThe online version contains supplementary material available at 10.1007/s10980-023-01779-8.

| S-EPMC10754738 | biostudies-literature

Is the profitability of Islamic and conventional banks driven by the same factors?-A study of banking in the Middle East.

Project description:The purpose of this paper is to contribute to the existing literature by investigating the determinants of the profitability of Islamic and conventional banks in the Middle East region and revealing the most important factors for these two types of banks. Few papers have studied the performance of Islamic banks and compared their performance with conventional banks. The results from these limited research papers are also various, mainly because the sample sizes are small, or they have analysed data only from one country. Our research used a fixed effect panel data analysis on a sample of 270 banks (111 Islamic and 159 conventional banks) from 12 Middle East countries. We used an unbalanced annual panel of data covering the period 2012-2020. The results show that bank size, equity to assets, annual GDP growth, and annual average oil price have a significant positive effect on Islamic banks' profitability, while non-performing loans to total gross loans and cost of running operations to operating income have a significant negative effect on both bank types. The results also show that non-performing loans to total gross loans and annual GDP growth contribute more to conventional banks profitability, while oil price contributes only to Islamic banks performance. Inflation and net loans to total assets have no effect on bank profitability for either Islamic or conventional banks. Furthermore, we also found that the Islamic banking industry had a more competitive structure. Our findings have important implications for managers, policy makers, investors and other stakeholders. They can help them to make decisions regarding investments, plans, budgeting, evaluation and the management of business operations.

| S-EPMC10406290 | biostudies-literature

OmicsDI is part of the ELIXIR infrastructure

OmicsDI is an Elixir interoperability service. Learn more ›

Tweets

OmicsDI Databases

PRIDE
PeptideAtlas
MassIVE
JPOST Repository
Physiome Model Repository

EGA
EVA
ENA
LINCS
PAXDB
Cell Collective

MetaboLights
Metabolomics Workbench
MetabolomeExpress
GNPS
BioModels
FAIRDOMHub

ArrayExpress
dbGaP
ExpressionAtlas
GEO
NODE

Information

Databases
Help
API
Contact us
Code on GitHub
Terms of use
Submit Data