The banking industry has adopted an approach to managing financial risk based on economic capital, the amount of capital necessary to achieve a specified level of protection…
Abstract
The banking industry has adopted an approach to managing financial risk based on economic capital, the amount of capital necessary to achieve a specified level of protection against financial ruin. In the New Basel Capital Accord, regulators have recently proposed capital regulation to reduce operational risk. In this article, the author challenges the rationale for employing a capital charge to mitigate operational risk.
Robert A. Eisenbeis and Richard J. Herring
The purpose of this paper is to examine the events leading up to the Great Recession, the US Federal Reserve’s response to what it perceived to be a short-term liquidity problem…
Abstract
Purpose
The purpose of this paper is to examine the events leading up to the Great Recession, the US Federal Reserve’s response to what it perceived to be a short-term liquidity problem, and the programs it put in place to address liquidity needs from 2007 through the third quarter of 2008.
Design/methodology/approach
These programs were designed to channel liquidity to some of the largest institutions, most of which were primary dealers. We describe these programs, examine available evidence regarding their effectiveness and detail which institutions received the largest amounts under each program.
Findings
We argue that increasing financial fragility and potential insolvencies in several major institutions were evident prior to the crisis. While it is inherently difficult to disentangle issues of illiquidity from issues of insolvency, failure to recognize and address those insolvency problems delayed necessary adjustments, undermined confidence in the financial system and may have exacerbated the crisis.
Research limitations/implications
Disentangling issues of illiquidity from issues of insolvency is inherently difficult and so it is not possible to specify a definitive counterfactual scenario. Nonetheless, failure to recognize and address the insolvency problems in several major institutions until more than a year after the crisis had begun delayed the necessary adjustment and undermined confidence in the financial system.
Originality/value
This paper is among the first to analyze data showing the amounts of lending and the distribution of these loans across institutions under the Fed’s special liquidity facilities during the first 18 months of the financial crisis.
Details
Keywords
John S. Jahera and David A. Whidbee
The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are removed, greater…
Abstract
The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are removed, greater integration of banking services is developing throughout the world affecting the performance and structure of banking institutions. This research examines the stock returns and volatility of stock returns for a sample of banks in the United States, Europe, Canada and Japan. The general focus is to identify factors influencing the return and risk and to examine cross‐country differences in these factors. The results suggest that while size does not affect return volatility for any of the categories of banks, it does affect returns for banks in Japan, the U.S. and other non‐universal banking systems. Likewise, the investment in fixed assets appears consistently to adversely affect returns. A number of differences are found across country borders and across type of institutions (i.e. universal versus non‐universal banks).
Owais Shafique, Nazik Hussain and M. Taimoor Hassan
The purpose of this paper is to provide an insight into the differences in the risk management practices of Islamic financial institutions (IFI) and conventional financial…
Abstract
Purpose
The purpose of this paper is to provide an insight into the differences in the risk management practices of Islamic financial institutions (IFI) and conventional financial institutions (CFI) in Pakistan.
Design/methodology/approach
The study makes use of primary data collection method using a questionnaire survey.
Findings
Literature review discovered that the types of risks faced by both types of financial institutions can be classified under six categories. The research concludes that credit risk, equity investment risk, market risk, liquidity risk, rate of return risk and operational risk management practices in IFI are not different from the practices in CFI. Whereas the overall risk management practices of IFI and CFI are alike in Pakistan.
Research limitations/implications
Further research with a larger sample size is recommended.
Practical implications
The paper opens our eyes to the fact that much is unknown about the risk management practices in Pakistani financial system, creating a need for empirical studies for further discoveries to formulate better frameworks and to prevent an impending financial crisis that might be unravelling at the time this paper is being read.
Originality/value
This is the first empirical study of its kind that addresses the unmarked topic of RMP in IFI and CFI in Pakistan. The research was conducted because few studies have been executed to understand differences in the risk management practices in Pakistan, exclusively among Islamic financial institutions. This study is expected to expand the existing literature by providing novel empirical evidence.
Details
Keywords
People who have yet failed to realize how serious the food situation may become are inclined to criticize the multiplication of Orders and appeals, and in some cases to contest…
Abstract
People who have yet failed to realize how serious the food situation may become are inclined to criticize the multiplication of Orders and appeals, and in some cases to contest their wisdom. Mistakes may have been made or fresh conditions may have arisen to make less urgent some particular restriction, but generally the position has grown more critical in recent weeks, and instead of looking for any relaxation of the regulations now in operation the public should be prepared for still more drastic orders. No one as a result of the restrictions on food consumption yet introduced has suffered anything more than inconvenience arising out of interference with established habits. There has been no hardship and no hunger. In Germany the rationing of bread began so long ago as January in 1915, and to‐day there is hardly an article of food which is not rationed. When the existing prohibitions, regulations, and appeals issued by LORD DEVONPORT are summarized it will be realized to how limited an extent they have disturbed the character or the quantity of the food which may be consumed without exceeding the directions of the Food Controller. The position may be stated under the following headings:—
Jaron Harvey, Mark C. Bolino and Thomas K. Kelemen
For decades organizational citizenship behavior (OCB) has been of interest to scholars and practitioners alike, generating a significant amount of research exploring the concept…
Abstract
For decades organizational citizenship behavior (OCB) has been of interest to scholars and practitioners alike, generating a significant amount of research exploring the concept of what citizenship behavior is, and its antecedents, correlates, and consequences. While these behaviors have been and will continue to be valuable, there are changes in the workplace that have the potential to alter what types of OCBs will remain important for organizations in the future, as well as what types of opportunities for OCB exist for employees. In this chapter we consider the influence of 10 workplace trends related to human resource management that have the potential to influence both what types of citizenship behaviors employees engage in and how often they may engage in them. We build on these 10 trends that others have identified as having the potential to shape the workplace of the future, which include labor shortages, globalization, immigration, knowledge-based workers, increase use of technology, gig work, diversity, changing work values, the skills gap, and employer brands. Based on these 10 trends, we develop propositions about how each trend may impact OCB. We consider not only how these trends will influence the types of citizenship and opportunities for citizenship that employees can engage in, but also how they may shape the experiences of others related to OCB, including organizations and managers.
Details
Keywords
Patrick F. McKay and Derek R. Avery
Over the past decade, the U.S. workforce has become increasingly diverse. In response, scholars and practitioners have sought to uncover ways to leverage this increasing diversity…
Abstract
Over the past decade, the U.S. workforce has become increasingly diverse. In response, scholars and practitioners have sought to uncover ways to leverage this increasing diversity to enhance business performance. To date, research evidence has failed to provide consistent support for the value of diversity to organizational effectiveness. Accordingly, scholars have shifted their attention to diversity management as a means to fully realize the potential benefits of diversity in organizations. The principal aim of this chapter is to review the current wisdom on the study of diversity climate in organizations. Defined as the extent that employees view an organization as utilizing fair personnel practices and socially integrating all personnel into the work environment, diversity climate has been proposed as a catalyst for unlocking the full value of diversity in organizations. During our review, we discuss the existent individual- and aggregate-level research, describe the theoretical foundations of such work, summarize the key research findings and themes gleaned from work in each domain, and note the limitations of diversity climate research. Finally, we highlight the domains of uncertainty regarding diversity climate research, and offer recommendations for future work that can enhance knowledge of diversity climate effects on organizational outcomes.
Details
Keywords
Saquifa B. Seraj, Maria Tsouroufli and Mohamed Branine
This chapter investigates the role of gender, mentoring and social capital and contributes to literature about the career development of women in senior management roles in the…
Abstract
This chapter investigates the role of gender, mentoring and social capital and contributes to literature about the career development of women in senior management roles in the National Health Service of the UK. It draws on a doctoral study of senior-level managers in a Scottish NHS Board. The data collected are: (i) documentary; (ii) quantitative; and (iii) qualitative. The quantitative data are collected through questionnaires, while the source of qualitative data is in-depth semi-structured interviews. The doctoral study is embedded within an interpretivist and feminist paradigm. Although access to mentoring and social capital was seen as likely to enhance the career progression of females to senior managerial roles, gendered work and family expectations, gendered organisational culture, and normative performances of gendered senior management were identified as obstacles in taking advantages of mentoring and social capital. To the best of our knowledge, this is the only piece of work that explicitly investigates the role of mentoring and social capital in managing gender diversity at the senior managerial positions of the NHS.
Details
Keywords
Tom Schultheiss, Lorraine Hartline, Jean Mandeberg, Pam Petrich and Sue Stern
The following classified, annotated list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the…
Abstract
The following classified, annotated list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the RSR review column, “Recent Reference Books,” by Frances Neel Cheney. “Reference Books in Print” includes all additional books received prior to the inclusion deadline established for this issue. Appearance in this column does not preclude a later review in RSR. Publishers are urged to send a copy of all new reference books directly to RSR as soon as published, for immediate listing in “Reference Books in Print.” Reference books with imprints older than two years will not be included (with the exception of current reprints or older books newly acquired for distribution by another publisher). The column shall also occasionally include library science or other library related publications of other than a reference character.