Asset portfolio maturity changes during the financial crisis: evidence from U.S. banks

The study examined the determinants of bank stability within the South African banking sector. By controlling for individual bank characteristics and market characteristics, the study determined possible determinants of solvency, a proxy for bank stability, measured by z-score within the South African financial sector. The South African financial sector is highly concentrated but with a significantly large number of banks, the greater portion being foreign owned banks. The business models of some of the financial intermediaries differ from the big four and therefore the influence of the type of business model is of great interest in this study, as it highlights a unique feature of the South African financial sector. The study’s investigation used panel data estimation techniques and found that among the specific bank characteristics, lending activity and capitalization do significantly affect solvency of banks and at sector level concentration was significant. The crisis dummy also revealed that the presence of a financial crisis heightened insolvency. The results have implications for financial institutions and therefore are of interest to regulators, bank management and researchers. Policy prescription in the form of Prompt Corrective Action framework is made to ensure proactive reaction to trends likely to cause instability.

The purpose of this paper is to explore the influence of the cost of borrowing, processing time and documentation on the service quality of banking institutions in India that sanction housing loans. A research framework was designed to consider the independent variables influencing service quality by unearthing research gaps in the extant literature on housing loans. All research gaps were transformed into a questionnaire, to which 535 useful responses were received. A five-point Likert scale was used, and a structural equation model was formulated using ADANCO 2.0.1 – all hypotheses were tested with ADANCO. The findings clearly indicate the relevance of the service quality in banking sectors in India. There is a significant relationship between the three independent variables (cost of borrowing, processing time and documentation) and service quality. The outcome of banking service quality is measured through initial personal contact, online banking services, the humanitarian approach, provision of information for services, promise of service delivery and field verification, with all these measures having a very strong impact. This study is restricted to India only, but could be extended to other developing countries in South Asia in the future. This study could also be extended to cover other types of banking loans offered by banking institutions in India. The paper concludes that it is time for banking institutions to take action to sanction housing loans with a view to introducing the instant sanctioning of bank loans that come with real-time access, without resorting to bureaucratic policies and procedures for housing loan customers.

The features of financial support for reproduction of fixed assets of agrarian enterprises are considered in the article. These include quantitative and qualitative differences in the basic assets of agrarian enterprises, seasonal production, long payback period of capital investments, the reproduction in agricultural enterprises of a significant part of fixed assets in kind, unsustainable financial condition of enterprises and lack of collateral for obtaining long-term loans, undervalued value of fixed assets, no accrual of depreciation on land. For the agricultural enterprises of Ukraine, a cognitive model of the situation "Fixed Assets" was developed, which allows us to investigate factors that determine the possibilities of expanding their reproduction in the light of unstable conditions of functioning. On the basis of cognitive modeling, studies of a possible scenario for the transformation of this system in accordance with the purpose of management have been carried out and modeling the dynamics of the levers of directing the management influences depending on the chosen behavior. It is established that the most significant factors influencing changes in the system of fixed assets are: net profit received by enterprises of the agrarian sector of Ukraine, state support of agricultural producers, foreign investments in agriculture and financing of fixed assets on the basis of leasing. Based on a correlation-regression analysis based on the estimation of stable cause-and-effect relationships, establishing quantitative relations between random variables of the investigated process, conditional forecasts of changes in the size of fixed assets of agricultural enterprises are constructed.