Banks and Bank Systems

ISSN 1816-7403 (print), 1991-7074 (online)
Publisher LLC “Consulting Publishing Company “Business Perspectives”
Issued from April 2006
Banks and Bank Systems

The journal focuses on the results of scientific researches on monetary policy issues in different countries and regions all over the world. It also analyzes the activities of international financial organizations, central banks, and bank institutions. The privilege of publication is given to the original, conceptually new, contemporary and innovative manuscripts, which examine the global issues and will be interesting to the international audience. The journal is published quarterly in Ukraine.

Key topics:

  • Monetary Policy in Different Countries and Regions;
  • Monetary and Payment Systems;
  • International Financial Organizations and Institutions;
  • Monetary Policy of Central Banks;
  • Organizational Structure, Functions and Activities of Central Banks;
  • State Policy and Regulation of Banking;
  • Bank Competitiveness;
  • Banks at the Financial Markets;
  • Bank Associations and Conglomerates;
  • International Payment Systems;
  • Investment Banking;
  • Financial Risks and Risk Management in Banks;
  • Capital and Ownership Structure, Bankruptcy and Liquidation, Mergers and Acquisitions of Banks;
  • Corporate Governance and Goodwill;
  • Personnel Management in Banks;
  • Econometric, Statistical Methods; Econometric Modeling of Bank Activities;
  • Bank Ratings.

Starting January, 2017, Journal is open-access

Publisher

LLC “СPС “Business Perspectives”
Hryhorii Skovoroda lane, 10, Sumy 40022, Ukraine
phone/fax: +38-0542-775771

Submission guidelines

Please send a soft copy of your paper as an MS Word .doc file (all versions accepted) and filled Cover letter form to the following e-mail:
Editorial Assistant -

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Open Access Statement

Journal is committed to full open access for scholarly publications. All articles are available to all users immediately upon publication of the issue.
Benefits of the open access are:increased citation and usage;rapid publication; faster impact with permissive licenses; copyright retention by the author.
Authors can choose either of Creative Commons licenses (CC-BY 4.0 or CC-BY-NC 4.0). Find detailed information in the Copyright section.

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Editors

David T. Llewellyn

Professor of Money and Banking, Loughborough University, UK.

Gregor Kramer

Dr., Professor, Chair of Banking, Finance, and Accounting, Alanus University of Arts and Social Sciences, Germany.

Alex Plastun

Doctor of Economics, Professor of Chair of International Economics, Education and research Institute for business technologies "UAB", Sumy State University, Ukraine.

Advising Editors

Jan Gluchowski

Full Professor of Law, Rector of College of Banking, Poland.

George G. Kaufman

Ph.D, Dr., Professor of Finance and Economics, Director of the Center for Financial and Policy Studies, School of Business Administration, Loyola University Chicago, USA.

Marco J. Menichetti

Dr., Professor, Chair of Business Administration, Banking and Financial Management, Institute for Financial Services, University of Liechtenstein, Liechtenstein.

Daniel Stavarek

Ph.D., Dean, Head of Department of Finance and Accounting, School of Business Administration, Silesian University, Czech Republic.

Tatjana Volkova

Dr., Professor, BA School of Business and Finance, Latvia.

Editorial Board

Dr. Hussein Abdou

Ph.D., Professor of Banking & Finance, Business School at the Manchester Metropolitan University, UK.

Muhammad Mahboob Ali

Ph.D., Professor of Finance, Economics and Management, Dhaka School of Economics, Bangladesh. Currently Visiting Professor of Joytirmoy Business School, India.

Hussein A. Hassan Al-Tamimi

Ph.D., Professor of Finance and Head of Department of Finance and Economics, University of Sharjah, United Arab Emirates.

Abdul Nafea Al-Zararee

Professor, Chairman of Banking and Finance Sciences Department, College of Administrative and Finance Sciences, University of Philadelphia, Jordan.

Mario Anolli

Dean of School of Banking, Finance and Insurance, Università Cattolica del S.Cuore, Italy.

James B. Bexley

Ph.D., Chairholder, Smith-Hutson Endowed Chair of Banking & Distinguished Professor of Finance, Sam Houston State University, Huntsville, Texas, USA.

Mario I. Blejer

Deputy Chairman of Banco Hipotecario, Argentina.

Klaus Broeker

Dr., Professor, Attorney at Law, Law Office Prof. Dr. Bröker, Germany.

Iftekhar Hasan

E. Gerald Corrigan Professor of Finance, Gabelli School of Business, Fordham University, New York, USA.

M. Kabir Hassan

Dr., Professor, Department of Economics and Finance, University of New Orleans, Louisiana, USA.

Eva Hüpkes

Head of Regulation, Swiss Federal Banking Commission, Switzerland.

Yong H. Kim

Dr., Full Professor of Finance, College of Business, University of Cincinnati, USA.

Roland Kirstein

Dr., Professor of Economics of Business and Law, Otto-von-Guericke-University Magdeburg, Germany. 

Andy Mullineux

Professor of Global Finance, Department of Accounting and Finance, The Birmingham Business School, The University of Birmingham, UK.

Emine Orhaner

Head of Department of Banking and Insurance Education, Faculty of Education of Commerce and Tourism, Gazi University, Turkey.

Lucjan T. Orlowski

Dr., Professor of Economics and International Finance, Department of Economics and Finance, Sacred Heart University, USA.

Peter Reichling

Dr., Professor, Chair of the Department of Banking and Finance, Otto-von-Guericke University Magdeburg, Germany.

Burak Saltoglu

Professor of Economics, Department of Economics, Boğaziçi University, Turkey.

Mayadutta H. Sharma

Ph.D., Professor of Banking, School of Accounting and Finance, Faculty of Business and Economics, University of the South Pacific, Fiji Islands.

Peter Steiner

Head of the Institute of Banking and Finance, Graz University, Austria.

James B. Thomson

Professor of Finance, Chair of Department of Finance, College of Business Administration, University of Akron, USA.

Ingo Walter

Dr., Professor, Vice Dean of Faculty, Seymour Milstein Professor of Finance, Corporate Governance and Ethics, Stern School of Business, New York University, USA.

Christian Wolff

Dr., Professor in Finance, Luxembourg School of Finance, University of Luxembourg, Luxembourg.

Hai-Chin Yu

Professor of Finance, Chung Yuan Christian University Business School, Taiwan.

Stavros A. Zenios

Professor, University of Cyprus, Cyprus; Senior Fellow, Wharton Financial Institutions Center, The Wharton School, University of Pennsylvania, USA.

Mosad Zineldin

Ph.D., Professor in Economics, Strategic Relationship Management and Marketing, School of Management and Economics, Växjö University, Sweden.

Reviewers

Luisa Anderloni

Full Professor of Financial Markets and Intermediaries, Milan University, Italy.

Ser-Keng Ang

Senior Lecturer of Finance, Lee Kong Chian School of Business, Director and Vice Chairman of the Executive Committee, UOB-SMU Entrepreneurship Alliance Centre, Singapore Management University, Singapore.

Ahmet Faruk Aysan

Associate Professor, Department of Economics, Boğaziçi University, Bebek, İstanbul, Turkey.

Alessandro Benocci

Ph.D., Professor of Business Law, University of Pisa, Italy.

Giorgio Calcagnini

Professor of Economics, Department of Economics, Universita di Urbino "Carlo Bo", Italy.

Vincenzo Capizzi

Ph.D., Full Professor of Banking and Finance, Department of Economics and Business Studies, Università del Piemonte Orientale, Italia.

Sebastian Bogdan Capraru

Ph.D. Hab, Professor of Finance, Alexandru Ioan Cuza University, Romania.

Iryna Chmutova

Dr. of Economics, Associate Professor, Department of Banking, Simon Kuznets Kharkіv National University of Economics, Kharkiv, Ukraine.

Oleksiy Druhov

Doctor of Economics, Professor, Vice-rector for educational work and international cooperation, Higher State Educational Institution “Banking University”, Ukraine.

Gerald P. Dwyer

Professor and BB&T Scholar, Department of Economics, College of Business and Behavioral Sciences, Clemson University, USA.

Oleksandr Dzyublyuk

Doctor of Economic Sciences, Professor, Head of the Department of Banking, Ternopil National Economic University, Ukraine.

Osama El-Ansary

Ph.D., Professor of Finance and Banking, Cairo University, Faculty of Commerce, Cairo University, Egypt.

Jesmin Islam

Dr., Assistant Professor of Accounting, Banking & Finance, Faculty of Business & Government, University of Canberra, Bruce, Australia.

JIhor Ivasiv

Professor of Finance and Banking, Department of Banking, Kyiv National Economic University named after Vadym Hetman, Ukraine.

Oleh Kolodiziev

Dr. of Economics, Professor, Head of the Department of Banking of S. Kuznets KhNUE (Simon Kuznets Kharkiv National University of Economics), Ukraine.

Volodymyr Lepushynskyi

Ph.D., Deputy Director, Monetary Policy and Economic Analysis Department, National Bank of Ukraine, Ukraine.

Tong Li

Senior Research Analyst, Milken Institute, USA.

Stelios N. Markoulis

Dr., Adjunct Lecturer University of Cyprus, Visiting Professor Cyprus International Institute of Management, Honorary Visiting Research Fellow Cass Business School, London, UK.

Juan Javier Negri

Founding member, lawyer, Negri & Pueyrredon Abogados, Argentina.

Chowdari Prasad

Professor and Dean (Academics), Institute of Finance and International Management, Bangalore, India.

Emil Slazak

Ph.D., Associate Professor of Finance, Insitute of Banking, Warsaw School of Economics, Poland.

Paweł Smaga

Ph.D., Assistant Professor at Warsaw School of Economics in Poland and Senior economist at National Bank of Poland.

Amine Tarazi

Professor of Economics, Head of Economics Department, University of Limoges, France.

Olga Vovchak

Doctor of Economics, Professor, Academician of the Academy of Economic Sciences of Ukraine, Head of the Department of Banking, SHEE "Banking University", Ukraine..

Oleg Yaremenko

Doctor of Economics, Professor, Senior Research Fellow of the State Organization “Institute for Economics and Forecasting, Ukrainian National Academy of Sciences”, V. N. Karazin Kharkiv National University, Ukraine.

Guidelines for Editors and Reviewers

The Editorial Board consists of international experts in their respective fields. All members of the Board occupy high positions in educational and research institutions. The roles of the Editorial Board members are the following:

  • provide expertise in definite research field;
  • review submitted papers;
  • advise on journal policy and scope and participate in the journal development;
  • propose subject definition and conference choice for special issues. Also, editorial members may be guest editors of special issue;
  • promote the journal at conferences, seminars, workshops, and relevant public events
  • attract new potential authors;

Guest editors play a vital role in ensuring the quality of special content publications, such as Special Issues. Guest editors overlook the process, from proposal to publication.

The Editorial Board is reviewed every two years, which means exclusion of inactive members and addition of the new ones.

We appreciate applications from the editorial candidates. To submit an application, please send an e-mail to an editorial assistant of the selected journal and attach a file with your CV (containing the current place of work, occupation, education, the scope of your scientific interest, types of activity, list of publications, list of the journals in which you occupy the positions of an editor or a reviewer, e-mail for contact and a link to personal page at you university).

Duties of editors

We strongly recommend that Editors get acquainted with and follow COPE Code of Conduct and Best Practice Guidelines for Journal Editors.

The editors of the journal are responsible for deciding which of the articles submitted to the journal will be published. The editor may confer with the members of the Editorial Board in making this decision.

Fair play. The editors evaluate manuscripts without regard to the nature of the authors or the host institution including race, gender, religious belief, ethnic origin, citizenship, or political philosophy of the authors.

Confidentiality. The editors, members of the Editorial Boards, and any editorial staff must not disclose any information about a submitted manuscript to anyone except the authors of the paper, reviewers, potential reviewers, and the publisher, for appropriate reasons.

Disclosure. Unpublished materials disclosed in a submitted paper should not be used in the own research of the editors or the members of the Editorial Board without the express written consent of the author.

Duties of reviewers

We strongly recommend that all reviewers get acquainted with and follow COPE Ethical Guidelines for Peer Reviewers.

Confidentiality. Information regarding submitted manuscripts should be kept confidential during and after review process. Also, reviewers should not reveal any details about reviewing manuscript to anybody.

Standards of objectivity. Reviewers should be objective while conducting reviews. All the comments and recommendations should be supported with relevant arguments.

Disclosure. Unpublished materials disclosed in a submitted manuscript must not be used in a reviewer's own research without the express written consent of the author. Privileged information or ideas obtained through peer review must be kept confidential and not used for personal advantage.

Peer Review

Peer review plays a vital and critical role in the publication of scholarly articles through assessment of validity, quality and originality of submitted articles. It is considered to be the most effective and valid form of research evaluation to help select the highest quality articles for publication. Authors can receive the information regarding the peer-review stage of their manuscripts through editorial assistants.

Review process

Editorial staff transfers all submitted manuscripts to one of the Editors for initial evaluation in order to establish if the manuscript meets the editorial criteria. Initial evaluation includes assessment if the manuscript is suitable for the journal or special issue, authors’ qualification and background, and plagiarism levels. Papers that don’t meet these criteria, as well as obviously poor manuscripts, will be rejected without sending for further external review.

If the papers provide potential interest for readers and present importance to the scientists in the relevant field of the journal’s scope, Editors suggest external peer-reviewers (selection of peer-reviewers is based on expertise, reputation, specific recommendations and our own previous experience of a reviewer's characteristics). Alternatively, editorial staff will send manuscripts to qualified Editorial Board members or reviewers from our database.

All manuscripts are “double-blind” peer-reviewed, which means that reviewers do not possess any information about the authors’ identities and vice versa. If one of the editors submits the manuscript for publication in the journal, editorial staff transfers this manuscript to another Editor or one of the Editorial Board members without disclosing any information about the author.

After the manuscripts have been reviewed, Editors receive a Referee Report with point-by-point evaluation and comments. Based on the suitability of selected reviewers, adequacy of reviewer comments and overall scientific quality of the paper, Editors make one of the following decisions:

  • Publish unaltered
  • Consider after minor changes
  • Consider after major changes
  • Reject without further consideration

If the authors are required to revise the paper, they ought to provide revised manuscript along with Response to the Reviewers. All authors can receive Referee Report on demand without revealing the identity of the reviewer and appeal against editorial decisions by response to the referees with authors’ arguments and explanations. Articles may or may not be sent to reviewers after author revision, dependent on whether the reviewer requested to see the revised version and the wishes of the Editor.

Expectations from reviewers

During the peer-review process, report preparation, and after refereeing we expect from Editorial Board members and reviewers to:

  • respond in a reasonable time-frame, especially if reviewer can not perform the review, including intentional delay;
  • declare if they are not experts in the field the paper is relevant to;
  • declare any potentially conflicting or competing interests (which may, for example, be personal, financial, intellectual, professional, political or religious) and seek advice from the Editorial Board in this case;
  • decline to review if they feel unable to provide a fair and unbiased review or they are involved with any of the work in the manuscript or its reporting;
  • to provide honest and fair assessment of the strengths and weaknesses of the research and the manuscript;
  • send completed report form along with the reviewed manuscript;
  • be specific in their criticisms, and provide evidence with appropriate references to substantiate general statements to help editors in their evaluation and decision;
  • suggest additional research if it helps strengthen or extend the work;
  • ensure their comments and recommendations for the editor are consistent with their report for the authors;
  • any suggestions and comments must be based on valid academic or technological reasons;
  • continue to keep details of the manuscript and its review confidential during and after reviewing;

Conflicts of Interest

Conflicts of interest comprise those which may not be fully apparent and which may influence the judgment of author, reviewers, and editors. They have been described as those which, when revealed later, would make a reasonable reader feel misled or deceived. They may be personal, commercial, ideological, academic, or financial.

When authors submit a manuscript of any type or format they are responsible for disclosing all financial and personal relationships that might bias or be seen to bias their work. All authors that publish in our journals are obliged to declare conflicts of interest if there are any. Declared conflicts of interest will be considered by the editor and Conflict of Interest Statement will appear in our journals at the end of the published article.

Reviewers should not consider manuscripts in which they have conflicts of interest resulting from competitive, collaborative, or other relationships or connections with any of the authors, companies, or institutions connected to the papers. Reviewers should be objective and constructive, declare all potential conflicting interest, seeking advice from the editors if they are unsure whether something constitutes a relevant interest; do not allow their reviews to be influenced by the origins of a manuscript, by the nationality, religious or political beliefs, gender or other characteristics of the author, which could be implied in the manuscript.

Editors who make final decisions about manuscripts should not make editorial and publication decisions if they have conflicts of interest related to articles under consideration. Editorial staff must not use information received through working with manuscripts for private gain. Guest editors should follow these same procedures.

Research Misconduct Policies

Plagiarism

LLC "CPC "Business Perspectives" uses Similarity Check service and all manuscripts that are being sent for an external peer review, are screened for originality with iThenticate software. By submitting their manuscripts to our journals authors are agreeing to any necessary originality checks the manuscript may have to undergo during the publication process.
Plagiarism implies the use another author's work without permission or acknowledgement. Plagiarism may have different forms from copying word by word to rewriting. While defining plagiarism the following definitions are taken into account:

Literal copying
Copying the work word by word, in general or in parts, without permission or acknowledgement of the source. Literal copying is clearly plagiarism and is easily detected by plagiarism software.

Substantial copying
Replicating substantial part of the work without permission and confirmation of the source. In determining what is "substantial", both the quantity and the quality of the copied content are relevant.
Quality is measured by relative value of copied text comparing to the whole text. Where the essence of the work was copied, even not very big part of it, plagiarism is identified.

Paraphrasing
Copying may be made without literal replicating, used in the original work. This type of copying is known as paraphrasing and it may be the most difficult type of plagiarism to reveal.
Plagiarism in all its forms is unacceptable and will lead to immediate rejection of the paper along with possible sanctions against authors.

Allegations about authorship of contributions

It is important that all authors are declared in the list of authors and are declared in the Cover letter form, sent along with a submitted paper.

To be considered the author, a person should be responsible for particular research aspect or preparation for work or make particular contribution to the concept, project, fulfillment, or research explanation, and it must be confirmed in the final work form.

Insignificant contribution may not be considered as an authorship. A person who provides insignificant contribution or appropriate data or other type of help may be considered as "contributor" by author/co-authors, and may be declared in the paper in acknowledgement section.

According to our policy, author/co-authors of submitted paper must fill in the Cover letter form to identify all participants, as well as confirm their consent to publish the paper.

Duplicate submission

Authors must present papers which are unique and must not be submitted to any other journal (except for some unusual circumstances and only with reviewer's approval). Sometimes authors may ignore this requirement, submitting the same document to several journals or submitting several documents on the basis of one and the same research. As in plagiarism duplicate submission may take different forms: literal copying, partial, but substantial copying or even paraphrased copying of the research. The publisher sticks to the policy which forbids publication of multiple papers on the basis of a single research. Infringement of this policy will result in immediate rejection along with possible sanctions against authors.

Citation manipulation

Submitted manuscripts that are found to include citations whose primary purpose is to increase the number of citations to a given author's work, or to articles published in a particular journal, will result in immediate rejection along with possible sanctions against authors.

Data falsification

If the falsified or fabricated data of experimental results (this also includes manipulation of images) will be found in the submitted paper, it will result in an immediate rejection along with possible sanctions against authors.

Sanctions
The following sanctions may be imposed in case of infringement of abovementioned policies:

  • Immediate rejection of the manuscript.
  •  Immediate rejection of every other manuscript submitted to any journal published by LLC "CPC "Business Perspectives".
  • Publication embargo against all authors of the manuscript (prohibition for any new submissions to any journal published by LLC "CPC "Business Perspectives"). The term of the embargo may vary, but the minimum is 24 months.
  • Prohibition against all of the authors from serving on the Editorial Board of any journal published by LLC "CPC "Business Perspectives".

Correction and Retraction Policy

All Business Perspectives journals have the same policy regarding corrections and retractions. We differentiate between addenda, errata, corrigenda, and retractions.

Addenda
If significant information was unintentionally omitted by authors from the original publication, the original article can be amended through an Addendum reporting these previously omitted results. The Addendum will be published, with page numbers added, in the current issue of the journal. A hyperlink to the Addendum will also be added to the original publication.

Errata
An erratum will be used if a significant error has been introduced by us during the production of the journal article, including errors of omission such as failure to make factual proof corrections requested by authors within the deadline provided by the journal and within journal policy. A significant error is considered to be the one that affects the scholarly record, the scientific integrity of the article, the reputation of the authors, or of the journal. All errata are linked to the version of the article that they correct.

Corrigenda
A corrigendum is a notification of a significant error made by the authors of the article. All corrigenda are approved by the editors of the journal. All corrigenda are linked to the version of the article that they correct.

Retractions
Retraction will be issued by an editor upon several conditions: severe plagiarism, multiple publications, data fabrication, unreliable or faulty findings, and other harmful practices. In this case, Retraction notice will be published. This notice will include the title and authors of the article, the reason for the retraction and who is retracting the article. It will be published online with a link to the online version of the article. It will be published in the next print issue and included in the table of contents of that issue. Before publishing the notice of retraction, a signed statement by the authors should be sent to the editorial office.

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This section contains information about articles which are already reviewed, accepted and waiting for publication in next issues of the journal.

Bank capitalization and bank performance: a comparative analysis using accounting- and market-based measures

André Köster, Researcher, Department of Accounting and Control, University of Bremen, Germany
Jochen Zimmermann, Full professor, Department of Accounting and Control, University of Bremen, Germany

Abstract. This paper examines performance outcomes of capitalization in the European bank market. Using a European sample with 2,504 firm-year observations for the years 1992–2012, the authors analyze the effect of capitalization as used by the financial regulators on bank risk and bank profitability with alternative accounting- and market-based measures. All accounting-based measures consistently show that higher capitalization reduces bank risk and is associated with increased profitability. Contrary to this, market-based risk measures show higher bank risk implying possibly different risk assessment by capital market participants. Our results are corroborated by an ex post analysis of bank performance in times of crisis. Higher capitalized banks have fared better after the crisis in respect of profitability and risk.

Local and international dimensions to credit provision by commercial banks in Kenya

Roseline Misati, Dr., Central Bank of Kenya, Kenya
Anne Kamau, Dr., Central Bank of Kenya, Kenya

Abstract. Although considerable research has focused on the determinants of credit to the private sector, the issue still remains controversial, particularly with respect to the role of foreign banks in emerging markets. This study sought to understand the factors that affect lending of commercial bank loans both in form of foreign and local loans. It used panel data methods on quarterly bank-specific data covering the period 2000 to 2013. In general, the results reveal that the ownership structure, housing variable and the size of the bank are the main determinants of aggregate commercial bank lending. This conclusion is maintained even when we specifically examine the determinants of foreign loans and local loans separately. However, the role of the liquidity measure in not consistent in the different specifications while the role of interest rates is largely in line with expectation in most of the specifications. Implicitly, the results seem to suggest a need for mergers of small banks, policy focus on incentives for more local bank ownership and continued efforts on minimization of interest rate spread, which not only promote mortgage financing and home ownership but also overall credit growth.

Testing performance of An Interest Rate Commission Agent Banking System (AIRCABS)

Ameha Tefera Tessema, Doctor of Business Leadership candidate, School of Business Leadership, University of South Africa, South Africa
Jan Walters Kruger, Professor of Corporate Finance, School of Business Leadership, University of South Africa, South Africa

Abstract. This paper sought to analyze data and interpret statistical results in testing the performance of an interest rate commission agent banking system. Primary and secondary data were collected from banking industry in Ethiopia to test the research hypothesis, credit risk and liquidity crunch have no impact on AIRCABS, investor loan funding has positive impact on profitability and sustainability of AIRCABS and discrete market deposit interest rate incentive has a positive impact on stable deposit mobilization in a bank. To test the hypothesis statistical tools such as cronbach alpha, Kuder –Richardson (KR-20), canonical correlation and multinomial logistic regression were used. The result showed that credit risk and liquidity crunch have no effect on an interest rate commission agent banking system, investor loan funding has significant strong relationship with profitability and sustainability of AIRCABS and discrete market deposit interest rate incentive has also significant strong relationship with stable deposit mobilization. This led to a conclusion that an interest rate commission agent banking system (AIRCABS) model is viable and reliable.
Keywords: investor loan funding, discrete market deposit interest rate, agent bank model, profitability and sustainability, stable deposit.

Impact of return on long memory data set of volatility of Dhaka Stock exchange market with the role financial institutions: an empirical analysis

Muhammad Mahboob Ali, Ph.D., Professor, Dhaka School of Economics, Bangladesh
Aviral Kumar Tiwari, Assistant Professor, Faculty of Management, IBS/IFHE Hyderabad, India
Naveed Raza, Universiti Malaysia Terengganu, Malaysia

Abstract. The current study intends to empirically test relationship between long-memory features in returns and volatility of Dhaka stock exchange market. As such the study use the ARFIMA-FIGARCH and FIPARCH structure for the daily data ranging from 15 December 2003 toJuly 31, 2013of Dhaka Stock Exchange markets index i.e. DSE General Index (DGEN). The observed indication assembled from long-memory tests supports the occurrence of long-memory in Bangladesh stock returns. The study aims at doing research work with long memory data set as it provides a superior strategy as well as gives real picture with short memory data set. Moreover, the backup indication for existence of long memory in both return and volatility denies the efficient market hypothesis of Fama (1970) that the future return and volatility values are unpredictable. Extra measures ought to be given for the smooth functioning of the Dhaka stock exchange market so that both individual and institutional investors can get congenial atmosphere to invest. Authors’ suggested that Bangladesh Bank must play vital role as share market of Bangladesh is dominated by banking shares and in case of other listed shares of the Dhaka stock exchange market-authority should deal with transparently and fairly so that the market can be transformed into strong efficient market. This requires suitable directives, groundwork, removing malpractices and also implementation of investors’ friendly decisions. Further, fiscal policy of the country should be pro investor friendly as well as monetary policy should work as complementary towards investment at Stock exchange market as suggested by the authors.

The influence of religiosity and self-efficacy on the saving behavior of the Іslamic banks

Anton Priyo Nugroho, Doctor, Senior Lecturer, Islamic Economics, Islamic University of Indonesia, Indonesia
Anas Hidayat, Ph.D., Senior Lecturer, Faculty of Economics, Islamic University of Indonesia, Indonesia 
Hadri Kusuma, Prof., Dr., MBA, Professor, Faculty of Economics, Islamic University of Indonesia, Indonesia

Abstract. Indonesia is a country having the greatest Muslim population in the world. However, since the Islamic banks has been established in Indonesia for about 20 years, their market shares only account for about 5% in the Indonesian banking system. Muslim participations in using Islamic bank are relatively low. This study expands the Theory of Planned Behavior by adding the variables of religiosity and self-efficacy. Previous studies have not examined this new expand model to analyze customers who participated on the saving Islamic bank products and services. On the basis of 220 Islamic bank consumers that participate in the study, the study indicated that religiosity and self-efficacy questionnaires had good external validity and could be adapted for the Indonesian culture context. The most interesting finding was that the religiosity variable strongly enhanced the behavior of the using of Islamic banks. Similarly, this study found that the self-efficacy variable improved an intention of customers to participate on the Islamic banking system. This paper also discusses the implications of the findings and recommendations for future studies.

Critical challenges affecting Islamic banking growth in India using Analytical Hierarchy Process (AHP)

Mosab I. Tabash, Assistant Professor of Finance, College of Business, Al Ain University of Science and Technology, United Arab Emirates (UAE)

Abstract. The banking sector plays a vital role in growth-supporting factor for economic growth in the world's fastest-growing economies like India. Recently, Islamic banking is becoming an increasingly popular method for alleviating poverty, financial inclusion and economic development around the world. Its importance is highly needed in developing and emerging countries such as India. The main purpose of the paper is to identify and prioritize the critical impeding factors for Islamic banking growth in India. The study is depending on two stages; the first stage depends on investigating the current literature work regarding the challenges that face Islamic banking industry in India while the second stage is based on identifying and prioritizing these challenges according to its importance in hindering Islamic banking growth by Analytic Hierarchy Process (AHP). AHP is a multi-criterion decision making tool for organizing and analyzing decisions, based on qualitative and quantitative measures. The results show that the regulatory environment challenge is the most significant factor among other factors in impeding the growth of Islamic banking progress in India followed by lack of Islamic banking experts and scholars. The third main challenge is lack of awareness for Islamic banking instruments followed by lack of standardization and the last is lack of cooperation and coordination between Islamic banking authorities. This study is considered the first one to address empirically the challenges that face Islamic banking industry in the world and particularly in India.

The Global Financial Crisis and Islamic Banking: The Direct Exposure to the Crisis

Faisal Alqahtani, Taibah university, Al Madinah, Kingdom of Saudi Arabia
David G. Mayes, University of Auckland, Auckland, New Zealand

Abstract. This paper theoretically discusses and reviews the main causes of the crisis, including discrimination, moral failure, poor governance, easy credit, imprudent lending, excessive debt and leverage, and regulation and supervision failure. The implications of the crisis have been reviewed, followed by a critical discussion on the lack of direct exposure to the crisis for Islamic banking because most, if not all, of the practices and financial instruments that are believed to be responsible for the crisis are not permitted under Islamic banking principles.

Benchmarking of bank performance using the life cycle concept and the DEA Approach

Volodymyr Ponomarenko, Rector, Simon Kuznets Kharkiv National University of Economics Rector, Simon Kuznets Kharkiv National University of Economics, Ukraine
Oleh Kolodiziev, Chief of Department of Banking, Simon Kuznets Kharkiv National University of Economics, Ukraine
Iryna Chmutova, Professor at Department of Banking, Simon Kuznets Kharkiv National University of Economics, Ukraine

Abstract. Despite the widespread use of benchmarking as an effective tool for improving the efficiency of the bank’s functioning, its implementation does not take into account the relation between comparable performance indicators, the choice of benchmark for comparison, deviations of indicators from target values with stages of the bank's life cycle, which cause differences in the intensity and characteristics of development of financial institutions. The procedure for identifying a reference bank for comparison is also insufficiently specified, which is important in terms of adapting its experience by the recipient bank due to the possible fundamental differences in their functioning. Therefore, the article has modified the technology of benchmarking of the bank's performance based on the life cycle concept and the DEA approach.
The research is based on the use of the DEA method to determine the most efficient bank as a reference bank in benchmarking comparison; canonical analysis – for the formation of a list of indicators of bank performance; cluster analysis – to substantiate the levels of deviations of the actual values of comparable indicators from the target ones.
The study envisages, firstly, the selection of indicators for benchmarking comparisons based on the identification of causal relationships between the indicators of subsystems “Finance”, “Customers”, “Business processes”, “Personnel development” that arise at each stage of a bank’s life cycle; secondly, the choice of a benchmark bank for comparison according to the maximum value of the performance indicator calculated through the DEA method for a set of banks that are at one and the same stage of their life cycle; thirdly, definition of the range of deviations (low, permissible, critical) of the actual values of comparable indicators of the effectiveness of management of finances, customer base, business processes and personnel of the bank from the target ones. A practical testing of the benchmarking technology was carried out on the example of Ukrainian banks, whose stage in 2016 was identified as “intense growth”.

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Editorial Board members and reviewers constantly work on increasing the efficiency of manuscripts evaluation and selection of the papers that present extreme importance to the scientific field. In this respect, there are factors that result in a rejection of a significant share of papers submitted for publication. The reasons for rejection can be different. Main reasons are listed in Peer Review and Research Misconduct Policies.

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The language of the manuscript should be professional, and the format should comply with the standards given. Weak English and incompliance with the format standards will not obligatorily lead to rejection, but can delay paper acceptance until the author makes the amendments. The acceptance rate for the journal is calculated as a number of manuscripts accepted for publication compared with total number of manuscripts submitted in one year.

This rate demonstrates gradual and steady decrease. By now, it is 33%.

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The average time it takes to make a publication decision after receipt of submitted manuscript is 80 days.

Number of articles published in “Banks and Bank Systems”:

2006 – 38
2007 – 34
2008 – 34
2009 – 38
2010 – 52
2011 – 44
2012 – 40
2013 – 44
2014 – 45
2015 – 37
2016 – 49

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12 volumes and 49 issues