Issue #1 (Volume 15 2020)
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ReleasedMarch 30, 2020
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Articles17
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51 Authors
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100 Tables
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42 Figures
- acquisitions
- Analytical Hierarchy Process (AHP)
- asset quality
- audit committee
- bank
- banking supervision
- bank penetration
- bank performance
- banks
- bank supervision
- branches
- capital adequacy
- CC&Rs
- confidence
- consolidation
- correlation
- covenants
- credit risk
- criminality
- data envelopment analysis
- debt
- debt-service coverage ratio
- disclosure index
- e-banking
- economic activity
- economic standards
- economy
- effectiveness
- enterprise
- entropy
- EURIBOR
- Eurozone crisis
- filtered historical simulation
- financial inclusion
- financial risks
- forward rate agreement (FRA)
- GDP
- GDP growth
- herding
- improvement
- inflation
- information
- innovation
- interconnectedness
- interest rates
- internet banking
- Islamic banks
- loan life coverage ratio
- MENAP
- mergers
- monetary policy
- monitoring
- multifractal detrended fluctuation analysis
- network analysis
- nonparametric regression
- nonperforming loans
- operational control
- performance
- prevention
- privacy risk
- profitability
- project financing
- public sector purchase program
- recapitalization
- reliability
- reorganization
- return on assets
- risk
- risk disclosure
- Saudi Arabia
- security risk
- selection criteria
- sharia supervisory board
- Shewhart control charts
- stability
- subjects
- system
- systemic risk
- Target2
- trust
- Ukraine
- Yemen
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Corporate governance mechanism and risk disclosure by Islamic banks in Indonesia
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 1-10
Views: 1412 Downloads: 303 TO CITE АНОТАЦІЯThe disclosure of risk by Islamic banks is very important, as this openness of information is emphasized in Islamic teachings. The purpose of this article is to provide empirical evidence regarding the influence of the number of members of the Sharia Supervisory Board (SSB) and their cross membership, the debt and the Syirkah fund ratio (investment accounts), the composition of the board of commissioners, the number of audit committee members, and the amount of assets on risk disclosure by Indonesian Islamic banks.
The study uses content analysis techniques to measure risk disclosure by Islamic banks. The analysis uses panel data regression with observations for the period of 2010–2017. Based on the Fixed Effect Model, the study found out that the number of SSB members, the cross memberships of SSB, the ratio of independent commissioners to the number of audit committees do not influence risk disclosure. The leverage to investment account ratio does not influence risk disclosure. Also, the results of this study demonstrate that only the amount of assets influences risk disclosure. -
Security perception of e-banking users in India: an analytical hierarchy process
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 11-20
Views: 1225 Downloads: 372 TO CITE АНОТАЦІЯWhen choosing online financial transactions, security is a paramount concern of users. Three categories of banks in India, namely public, private and foreign banks, have a completely different focus on technology and capabilities. The study aims at investigating e-banking users’ perception with regard to online risk for public, private and foreign banks. Online risk perception for the abovementioned banks was assessed on three major risk parameters, i.e. security aspect, privacy aspect, and trust; using a multiple-criteria decision-making tool, called the Analytical Hierarchy Process (AHP). The outcomes indicate that security risk is paramount among various aspects of perceived risk, followed by privacy and trust concern. Moreover, public sector banks are perceived to be the safest in this aspect. Public sector banks are also considered to be benign in terms of privacy and trust. Given the general user’s perception of risk generated by all the three risk parameters taken together, public sector banks are perceived to be the most secure, followed by private and foreign banks. The findings of this study have various implications for both research and practice. Private and foreign banks in India may adopt appropriate marketing strategies to achieve a favorable perception. Various studies have been conducted earlier on these factors and their interrelationship, but limited research has been carried out to demonstrate the importance of each of these factors in relation to the other as perceived by the user. Moreover, the study quantifies factors in order of their importance.
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The impact of credit risk and macroeconomic factors on profitability: the case of the ASEAN banks
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 21-29
Views: 1860 Downloads: 642 TO CITE АНОТАЦІЯThis study investigates the effect of credit risk and macroeconomic factors on profitability of 20 ASEAN banks, particularly from Indonesia, Malaysia, Thailand and Philippines, covering the period of 2012 to 2017. The unbalanced panel data were tested for heteroscedasticity and normality. A fixed effects model and a random effects model were utilized followed by simple ordinary least squares (OLS) regression. The obtained results show that credit risk and GDP growth negatively affect Return on Equity (ROE) at 5% level of significance. The inflation rate increases ROE by 0.323%. In terms of influence, inflation has the highest impact on ROE followed by GDP growth and credit risk. Credit risk and GDP growth negatively affect Return on Assets (ROA) at 5% level of significance. ROA was also influenced by an increase in inflation rate. Therefore, this study will help banks and bank managers, depositors, investors, policy makers and governments to identify factors affecting bank profitability.
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Risks and the influence of negative interest rates on economic activity: a case study of Sweden, Denmark, and Switzerland
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 30-41
Views: 1083 Downloads: 193 TO CITE АНОТАЦІЯThe purpose of this paper is to analyze the impact of negative interest rates on economic activity in a selected group of countries, in particular Sweden, Denmark, and Switzerland, for the period 2009–2018. The central banks of these countries were among the first to implement negative interest rates to revive the economic growth. Therefore, this study analyzed long- and short-term relationships between interest rates announced by central banks and gross domestic product and blue chip stock indices. Time series analysis was conducted using Engle-Granger cointegration analysis and Granger causality testing to identify long- and short-term relationship. The first step, using the Akaike criteria, was to determine the optimal delay of the entire time interval for the analyzed periods. Time series that seem to be stationary were excluded based on the results of the Dickey-Fuller test. Further testing continued with the Engle-Granger test if the conditions were met. It was designed to identify co-integration relationships that would show correlation between the selected variables. These tests showed that at a significance level of 0.05, there is no co-integration between any time series in the countries analyzed. On the basis of these analyses, it was determined that there were no long-term relationships between interest rates and GDP or stock indices for these countries during the monitored time period. Using Granger causality, the study only confirmed short-term relationship between interest rates and GDP for all examined countries, though not between interest rates and the stock indices.
Acknowledgment
The paper has been created with the financial support of The Czech Science Foundation GACR 18-05244S – Innovative Approaches to Credit Risk Management. -
Impact of corporate restructuring on the financial performance of commercial banks in Nigeria
Lawrence Uchenna Okoye , Alexander Ehimare Omankhanlen , Johnson I. Okoh , Felix N. Ezeji , Esther Ibileke doi: http://dx.doi.org/10.21511/bbs.15(1).2020.05Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 42-50
Views: 1414 Downloads: 374 TO CITE АНОТАЦІЯThe implementation of the 2004–2005 bank capital reform in Nigeria, introduced to deepen the financial capacity of the banking system, has led to a major restructuring of the banking sector. The reform required banks to increase their equity capital by about 1150 per cent (from two billion to twenty-five billion naira) within 18 months. Due to compliance challenges, the reform formed just twenty-five out of eighty-nine banks that previously existed. More than seventy-five per cent of the banks emerged through mergers and acquisitions. However, despite the massive increase in assets and deposit growth, episodes of bank distress have remained a recurring irritant in the country’s financial system. This study compares bank performance in the pre- and post-reform periods to determine the usefulness or efficacy of the capital reform in boosting bank performance based on panel analysis of data from five banks. The study covered the period 1996–2016. The generalized method of moments was used to evaluate the parameters of the model. The result of the random effects model shows a weak positive effect of total assets and deposit growth on bank performance in the pre-reform period. However, the post-reform assessment reveals that while profitability is significantly low in large-sized banks, it is higher in smaller banks. Given the above evidence, the study asserts that profit performance of banks is substantially linked to restructuring of the sector.
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Operational control over the financial stability of banking
Angela Kuznetsova , Borys Samorodov , Galyna Azarenkova , Kateryna Oryekhova , Maksym Babenko doi: http://dx.doi.org/10.21511/bbs.15(1).2020.06Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 51-58
Views: 997 Downloads: 122 TO CITE АНОТАЦІЯMaintaining proper financial stability of each banking institution is one of the main tasks facing the banking system of Ukraine. This enables operational control over the financial strength of banking activities.
The purpose of the article is to develop recommendations on the operational control of financial stability of banking and to test them using banking institutions in Ukraine as an example.
To execute operational control over the financial stability of banking, economic standards of banking regulation are grouped under the “at least” or “not exceeding” principle. To determine their change over time, Shewhart control charts are proposed.
The recommendations were tested through the example of the Ukrainian banking institutions (with state, foreign and private capital). It was found out that in 2017–2019, the following three economic standards of banking regulations were not met: regulatory capital adequacy, high credit risk, and average investments; besides, there were two standards at the limit of control value: the ratio of regulatory capital to total assets and the maximum amount of credit risk per counterparty.
To improve the financial status of banking institutions, it is recommended to take organizational and financial measures to change the average value of the relevant economic standards for banking regulation to a level that ensures financial stability.
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The influence of financial inclusion on banks’ performance and risk: new evidence from MENAP
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 59-71
Views: 1194 Downloads: 986 TO CITE АНОТАЦІЯThis study seeks to investigate the relationship between financial inclusion factors and banks’ performance and risk among MENAP countries. The sample includes 271 banks located in 24 countries in the region that are interconnected, and micro- and macro-variables that affect the performance and risk levels of these banks. The results indicate that enhancing the level of financial inclusion in the region can increase banks’ performance and decrease their risk. They also point out where these banks could benefit more from financial inclusion in terms of reducing their risks. Future research may include investigating financial inclusion tools to explore the relationship between financial inclusion and banks’ performance and risk in developing countries. More research can be conducted on each MEANP country to analyze their characteristics and the influence of financial inclusion on bank performance and risk. In addition, future research should be conducted to study the relationship between regulations, rules and financial inclusion across countries and economies.
Acknowledgment
The author is thankful to Prof. Xiuhua Wang, Bo Liu, and Yipeng Wang for their comments and suggestions to improve this paper. The author discloses that funding for the writing of this paper comes from the TAAWON research fund. -
Assessment and mitigation of credit risks in project financing
Svitlana Naumenkova , Ievgen Tishchenko , Svitlana Mishchenko , Volodymyr Mishchenko , Viktor Ivanov doi: http://dx.doi.org/10.21511/bbs.15(1).2020.08Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 72-84
Views: 1570 Downloads: 1188 TO CITE АНОТАЦІЯLending to long-term investment projects in fragile countries requires additional financial instruments to control the sustainability of project cash flows and to increase the borrower’s financial discipline in debt servicing. This paper analyzes the special aspects of using financial covenants as credit risk mitigation instruments in project financing in Ukraine. It also argues that regulatory requirements to maintain financial strength indicators at the appropriate level have an indirect impact on the change in project finance loan rates. The study primarily aims at developing approaches to defining a credit rate corridor for an investment project, depending on changes in the values of financial sustainability indicators. The implementation of the proposed approach allows increasing the validity of credit risk components for investors and optimizing capital value for borrowers.
As required by international practice, violation of covenant terms is the trigger for satisfying the creditors’ claims. According to the authors’ conclusions, the use of financial covenants as a tool for protecting the creditors’ interests should not be an instrument of unreasonable financial pressure on borrowers. The study reveals benefits and drawbacks of using financial covenants to mitigate credit risk and reduce the probability of a borrower default in the field of project financing in Ukraine. -
The financial soundness of the Palestinian banking sector: an empirical analysis using the CAMEL system
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 85-97
Views: 1207 Downloads: 409 TO CITE АНОТАЦІЯThe purpose of this article is to evaluate the financial soundness of commercial banks listed on the Palestine Exchange using the CAMEL rating system. A content analysis, composite rating, and a one sample t-test are applied to a sample of six local banks operating in Palestine. Secondary data were obtained from the financial statements of the banks for the period of 2007–2017 in order to conduct the research and evaluate their financial performance. The empirical test has shown that Palestinian banks adhere to the Basel Committee standards in terms of capital adequacy and that they display stability in terms of profitability and liquidity. However, the paper concludes that the operational efficiency of the banks being evaluated is “fairly managed”. Finally, the findings indicate significant differences amongst Palestinian banks in terms of performance, assessed using the CAMEL rating system. This paper suggests that the listed Palestinian banks should focus on long-term investments rather than short-term ones, and monitor their risk management practices to increase their profits and move towards sustainability and growth.
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Assessment of financial monitoring efficiency in the banking system of Ukraine
Alina Bukhtiarova , Andrii Semenog , Мila Razinkova , Nataliia Nebaba , Józef Antoni Haber doi: http://dx.doi.org/10.21511/bbs.15(1).2020.10Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 98-106
Views: 1284 Downloads: 540 TO CITE АНОТАЦІЯThe transformation processes taking place in the global economy and the expansion of global business ties increase the overall vulnerability of the international banking system. One of the problems related to money laundering is the process of evaluating the efficiency of financial monitoring measures. The article discusses the issues of assessing the effectiveness of financial monitoring in the banking system of the country. For Ukraine, this problem is especially relevant, because there is a bank-centric model of the financial market (about 90% of assets go through the banking system) in the country. According to official data, 50% of economic activity in Ukraine ends with money laundering. The article presents the improved method that quantifies the level of financial monitoring system effectiveness at commercial banks of Ukraine based on calculations of the integral index. The index indicates the dynamics of the financial system protection degree from the money laundering threat based on the expediency and efficiency of financial monitoring in the banking system. As a result, more comprehensive conclusions about the level of financial security of the country are made. According to assessments, in 2017–2018 the efficiency of financial monitoring of the banking system of Ukraine was at the middle level (about 64%). The proposed method can be applied to evaluate the effectiveness of the financial monitoring system in any country and become the basis for improving the anti-money laundering system through the banking system.
Acknowledgment
The study was conducted as part of state budget research of Sumy State University – Formation of a Public Finance Transparency System as a Prerequisite for Combating Corruption in Ukraine (0118U003585) (in the context of evaluating the effectiveness of financial monitoring of the Ukrainian banking system) and Formation of Tools for the Ukrainian Economy Unshadowing Based on Causal Modeling of Interaction Trajectories of Financial Intermediaries (0120U100473) (in the context of substantiating the need and directions for improving the financial monitoring system in Ukrainian banks). -
TARGET2 imbalances: causes, assessments and consequences
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 107-117
Views: 904 Downloads: 462 TO CITE АНОТАЦІЯThis research aims to enrich the literature on the threatening topic of Target2 imbalances in the euro area. Using a quantitative time series analysis, the paper examines and discusses the development of Target2 imbalances and the interrelationships of the European Central Bank (ECB) activities through market intervention using quantitative easing. This paper outlines the scope of central bank activities in different Eurozone countries and examines how individual debtor and creditor countries, as well as central banks, will continue to operate. In this context it examines whether the ECB is working on a problem solution, and what are the risks posed by Target2 imbalances for the euro area, as well as whether the euro is volatile and how the Target2 imbalances will be managed if the euro breaks. This research highlights the ambiguity of central bank activities, explains the burdens and risks of Germany as the largest creditor, shows solutions through the communitization or the creation of Target3 to correct past mistakes and to prevent a further and more severe global crisis. Attention is drawn to the fact that Italy could put the Eurozone in a critical situation by introducing mini-BOTs (small government bonds; “titoli di Stato di piccolo taglio”) as the second currency. Furthermore, it is pointed out that the ECB has adjusted its price stability objectives to raise inflation expectations in the Eurozone, which is unlikely to satisfy Target2 demanding countries.
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Exploring financial parameters and innovative orientation of banks as criteria for selecting financial partners for enterprises
Oleksii M. Hutsaliuk , Oksana V. Yaroshevska , Olha Yu. Kotsiurba , Alla S. Navolokina doi: http://dx.doi.org/10.21511/bbs.15(1).2020.12Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 118-131
Views: 890 Downloads: 180 TO CITE АНОТАЦІЯThe article substantiates aspects that are fundamental for the economic justification of the bank selection by enterprises as the main stage in the partnership formation. It also defines the development of a bank selection procedure taking into account the financial parameters and innovative orientation of banks.
The proposed procedure for selecting banks includes two blocks. The first block is the comparison of banks in terms of reliability, which is determined based on indicators for assessing their financial risks and confidence of enterprises. The second block is the comparison of the most reliable banks according to the operational capabilities of Internet banking systems (in terms of functionality) and the intensity of promotion of innovative products and services that meet the needs of enterprises.
The proposed bank selection procedure is mainly based on applying the classification functions that allow the reliability-based differentiation as well as comparison of banks. The proposals submitted with the aim to develop classification functions, as well as the bank selection procedure as a whole, were tested based on the financial statements and general information on the Ukrainian banks’ activity as of January 1, 2019. The following results were obtained while testing the developed procedure: It defines the features specific to dividing the analyzed Ukrainian banks into groups (70% are high-reliability banks, 7% are medium-reliability banks, and 23% are low-reliability banks). It also highlights the fact that reliable banks are focused on innovating and developing remote services for their business clients.
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Continued discussion on conventional versus Islamic banks: combining financial ratios and efficiency
Mohammad Imdadul Haque , Mohammad Rumzi Tausif , Anis Ali doi: http://dx.doi.org/10.21511/bbs.15(1).2020.13Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 132-142
Views: 1089 Downloads: 432 TO CITE АНОТАЦІЯTwo different types of banking systems, Islamic and conventional, dominate the banking structure in Saudi Arabia. The purpose of this paper is to contribute to the ongoing debate as to which of the two is better. Using data for the period 2014–2018, the study compares Islamic and conventional banks. It combines traditional financial ratios, Return on Assets (ROA) and Return on Equity (ROE), with Data Envelopment Analysis (DEA) to perform a comprehensive analysis. In terms of ROA, the performance of conventional banks is better than that of Islamic banks, but in terms of ROE, vice versa. DEA results show that conventional banks are more efficient than Islamic banks. In fact, in terms of ROA and ROE, Al Rajhi Bank, an Islamic bank, is the best performer. But in terms of efficiency scores from DEA, Al Rajhi ranks seventh among all banks, while NCB, a conventional bank, ranks first. Issuing shares and utilizing funds in profitable options, such as loans and advances to increase net income, are the policy recommendations for Islamic banks to further improve. In addition, as the study finds no correlation between the ratio and efficiency scores, it proposes to use a combined measure of ratio analysis and efficiency analysis for a comprehensive assessment of bank performance.
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Combating crime in the banking sector as a method for ensuring its stability (evidence from Ukraine)
Alyona Klochko , Oksana Kvasha , Zoia Zahynei , Mykola Logvinenko , Mykola Kurylo doi: http://dx.doi.org/10.21511/bbs.15(1).2020.14Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 143-157
Views: 949 Downloads: 202 TO CITE АНОТАЦІЯAn effective system for combating banking crimes can ensure the stability of the Ukrainian banking sector. Developing such a system requires an analysis of public policy institutional instruments to counter threats to the banking system stability. The article proposes the crime counteraction concept for the Ukrainian banking system based on the analysis of scientific articles dealing with the issue, relevant provisions of legal acts and on the study of functions of law enforcement agencies, individual executive bodies, central public authorities, state collegial bodies, territorial NBU departments, Ukrainian banks and their branches, the Deposit Guarantee Fund, international institutions, and bank clients.
It has been established that the stability of the Ukrainian banking system can be ensured by effective interaction of all actors in combating crime in the banking business. Overlapping of their functions and some conflict rules negatively affect ensuring the banking system stability by entities engaged in banking crime counteraction. Therefore, an algorithm of cooperation between relevant counteraction entities should be developed and reflected in the Banking and Financial Security Strategy on the legislative level. Optimization of statistical reporting on crime in the Ukrainian banking sector in a more informative format requires data on both individual types of banking crimes and on the persons who commit them. As part of the work of the National Bank of Ukraine’s Public Council, it is necessary to organize regional public councils and ensure cooperation between bank clients and local banking institutions. It is assumed that the development of effective mechanisms for protecting rights and legitimate interests of depositors and creditors, as well as combating criminalization in the banking sector will be the main functions of these regional public councils. The relevant innovations require amendments to the Regulation on the NBU Public Council.Acknowledgment
The article was prepared as part of a project for young scientists of Ukraine in 2017 (state registration number – 0117 U 006531), Improving the Legislation of Ukraine Regarding the Protection of Banking Activities in the Context of European Integration: Economic and Legal Aspect, by Alyona M. Klochko, Ph.D. (Law), Sumy National Agrarian University, Head of the Chair of International Relations. -
Systemic risk and interconnectedness in Gulf Cooperation Council banking systems
Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 158-166
Views: 831 Downloads: 137 TO CITE АНОТАЦІЯNowadays, financial interconnectedness is the main driver of systemic risk. Thus, there is a constant need for tools to assess and manage systemic risk. This paper offers an alternative model framework to measure systemic risk and examine interconnectedness between direct exposures across banking systems in the emerging markets of the Gulf Cooperation Council (GCC). To ensure consistency and efficiency of systemic risk estimates and to capture its multifaceted nature, the methodology measures systemic risk using a combination of Filtered Historical Simulation and nonparametric regression and then examines the interconnectedness using a network analysis. The results reveal that shocks originating in the banking systems in Saudi Arabia may potentially cause a cascade of failures in the banking systems of most GCC countries. The banking system in Oman, however, is robust enough to withstand any ripple effect from adverse shocks affecting GCC’s major banking systems. Such results present some policy implications for regulators and supervisors and may benefit asset managers and investors in making portfolio allocation decisions.
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The extent of voluntary disclosure in the annual reports of Islamic banks: empirical evidence from Yemen
Eissa A. Al-Homaidi , Karrar Khalaf Allamy , Anwar Ahmad , Mosab I. Tabash doi: http://dx.doi.org/10.21511/bbs.15(1).2020.16Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 167-184
Views: 1199 Downloads: 375 TO CITE АНОТАЦІЯThis article aims to measure the level of voluntary disclosure in the published annual reports of Yemeni Islamic banks. Four full-fledged Islamic banks from Yemen are selected for the current study. A disclosure checklist covering 266 items is prepared and a 10-year period, 2005–2014, is taken. The disclosure index items were classified into seven groups, such as basic information on Islamic banks, financial ratios, corporate governance information, financial statements data, corporate social disclosure, Zakat information, and other information that has been taken as an important attribute of voluntary disclosure. The obtained results show that the amount of voluntary disclosure that Yemeni Islamic banking institutions publish in their annual reports has gradually increased over the ten years examined. The results revealed that the highest average disclosure index score over the ten years was achieved by Tadhamon Islamic International Bank (TIIB), the second highest average disclosure score was obtained by Saba Islamic Bank (SIB), and the lowest average voluntary disclosure rating score during the ten years surveyed was achieved by Shamil Bank of Yemen & Bahrain in Yemen during the study period. Substantially, the result of voluntary disclosure scores indicates that the degree of voluntary disclosure by Yemeni Islamic financial institutions has relatively expanded during the ten years investigated. The findings provide new evidence for voluntary disclosure, particularly, Islamic disclosure items. The survey findings can be useful for regulators in Yemen to improve overall disclosure practices by Islamic banks operating in Yemen.
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Investigation of the fractal footprint in selected EURIBOR panel banks
Bikramaditya Ghosh , Corlise Le Roux , Anjali Verma doi: http://dx.doi.org/10.21511/bbs.15(1).2020.17Banks and Bank Systems Volume 15, 2020 Issue #1 pp. 185-198
Views: 739 Downloads: 293 TO CITE АНОТАЦІЯEURIBOR emerged as a conventional proxy for a risk-free rate for a reasonably long period of time after the creation of the Eurozone. However, the joy was short-lived, as the global credit crisis shook the markets in mid-2008. Significant counterparty risk embedded in a derivative transaction cannot be left out. EURIBOR reflects the credit spread on borrowing. Hence, risk and uncertainty are inextricably linked here. This study investigates five banks out of 19 panel banks that manage EURIBOR in various Eurozone countries. These banks, HSBC, ING, Deutsche Bank, the National Bank of Greece and Barclays, are tested from January 2009 to December 2017 on a daily basis. Bank specific EURIBOR can be predicted in all five cases with different degrees. The trace of a profound herd is observed in the case of the National Bank of Greece, others were relatively mild in nature. The customer base and their risk grade were recognized as the main factor. Their information asymmetry and derived information entropy suggest embedded chaos and uncertainty.