Submit to JRFM Review for JRFM Propose a Special Issue

Journal Menu

Journal Browser

Banking during the COVID-19 Pandemia

Print Special Issue Flyer
Special Issue Editors
Special Issue Information
Benefits of Publishing in a Special Issue
Published Papers

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Banking and Finance".

Deadline for manuscript submissions: closed (30 June 2024) | Viewed by 41907

Share This Special Issue

Special Issue Editor

Dr. Pierluigi Murro

E-Mail Website
Guest Editor

Department of Business and Management, LUISS University, 00197 Roma RM, Italy
Interests: relationship banking; corporate governance; SMEs financing

Special Issue Information

Dear Colleagues,

Coronavirus disease 2019 (COVID-19) has generated significant instability and high volatility in global capital markets. The financial sector has been one of the most affected, with bank valuations dropping in all countries around the world. The low-interest rate scenario, along with the significant impact of COVID-19, is reducing the core banking profitability in mature markets. Financial institutions are thus shifting towards commission-based income from the likes of payments and tech businesses.

Moreover, the halt to the economy has represented a large shock to the corporate sector, which had to scramble for cash to cover operating costs as a result of the revenue shortfall. Banks, at this stage, are called to guarantee the necessary liquidity to the real economy, also conveying trust and reliability to end-customers towards a path of recovery. In order to continue financing the real economy and support its recovery, banks are called to distinguish between purely temporary phenomena, destined to be reabsorbed in a short time, and longer-lasting impacts which would require actions of management and reclassification.

Changes triggered or accelerated by the COVID-19 crisis are forcing banks globally to reassess traditional products, strategies, and business models. Banks, even the most territorial and branch-centric ones, are forced to encourage the use of channels that have never been their strategic priority. This phase would be particularly complex, and banks need to address it by demonstrating real proximity with their customers. A clear understanding by banking operators of their delay in the provision of services, which has become more tangible than ever before because of COVID-19, could make them even more inclined to accelerate the digital transformation path through partnerships and collaborations within the fintech community.

Dr. Pierluigi Murro
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Benefits of Publishing in a Special Issue

Ease of navigation: Grouping papers by topic helps scholars navigate broad scope journals more efficiently.
Greater discoverability: Special Issues support the reach and impact of scientific research. Articles in Special Issues are more discoverable and cited more frequently.
Expansion of research network: Special Issues facilitate connections among authors, fostering scientific collaborations.
External promotion: Articles in Special Issues are often promoted through the journal's social media, increasing their visibility.
e-Book format: Special Issues with more than 10 articles can be published as dedicated e-books, ensuring wide and rapid dissemination.

Further information on MDPI's Special Issue polices can be found here.

Published Papers (11 papers)

Download All Papers

Order results

Result details

Show export options Show export options

Select all

Export citation of selected articles as:

Research

22 pages, 346 KiB

Open AccessArticle

Impact of Board Committee Characteristics on Social Sustainability Reporting in Sub-Saharan Africa: The Moderating Role of Institutional Ownership

by Marshall Wellington Blay, Prosper Kweku Hoeyi, Ebenezer Agyemang Badu and Abdul Bashiru Jibril

J. Risk Financial Manag. 2024, 17(7), 302; https://doi.org/10.3390/jrfm17070302 - 14 Jul 2024

Viewed by 753

Abstract

The corporate strategic planning of businesses in sub-Saharan Africa (SSA) largely focuses on immediate financial performance with minimal credence to social sustainability. Thus, studies on the linkage between corporate governance (CG) and sustainability reporting have focused on developed economies. This study therefore investigated the role of institutional ownership in the impact of board committee characteristics on social sustainability reporting. This study involved strongly balanced panel data with 1969 observations of 275 publicly listed non-financial firms in SSA within the timeframe of 2012 to 2021. Data were analyzed using STATA 14.1. The hypotheses were tested using the two-step system of the generalized method of moment (GMM) using the Arellano–Bond dynamic panel data estimation method. The rate of social sustainability reporting was 39.4%. Relatively, Mauritian and South African firms had the most effective board committee characteristics and higher levels of social sustainability reporting. Although institutional ownership had no significant effect on social sustainability reporting, it moderated the effect of sustainability committee independence and sustainability committee gender diversity on social sustainability reporting. This paper presents a new perspective on the corporate governance and social sustainability literature by examining the effect of institutional ownership on board committee characteristics and social sustainability reporting in SSA. In terms of policy implication, there is the need for mandatory regulatory and legal CG framework that is regularly updated at national and regional levels in SSA to motivate listed firms to establish sustainability committees with efficient characteristics to promote social sustainability reporting. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

21 pages, 650 KiB

Open AccessArticle

Revolutionizing Banking: Neobanks’ Digital Transformation for Enhanced Efficiency

by Riris Shanti, Hermanto Siregar, Nimmi Zulbainarni and Tony

J. Risk Financial Manag. 2024, 17(5), 188; https://doi.org/10.3390/jrfm17050188 - 1 May 2024

Viewed by 2443

Abstract

Changes in customer behaviors after the COVID-19 pandemic have encouraged the transformation of banking systems. Neobanks have emerged as an innovation and entered the banking system to compete with traditional banks by offering new customer experiences. Neobanks transform traditional banking products and services which are delivered through physical interactions into those delivered via digital channels. This paper analyzes traditional banks that have transformed into neobanks, specifically their efficiency after digital transformation. Efficiency was measured using Stochastic Frontier Analysis (SFA), as it is highly accurate in estimating efficiency scores. This study also used a Pooled Mean Group (PMG) estimation of the Panel ARDL (Autoregressive Distributed Lag), as this approach is useful for analyzing the relationship between variables in panel data, to investigate digital transformation as a determinant of neobanks’ efficiency and examine the existence of short-term and long-term relationships between digital transformation and efficiency. We found that the efficiency of neobanks increases after digital transformation. Furthermore, it can be concluded that digital transformation is a determinant of efficiency and that there is long-term relationship between digital transformation and efficiency. In the short term, digital transformation has a significant negative correlation with efficiency, but in the long term, it has a significant positive relationship; this is because the cost of digital transformation initially decreases the profit efficiency, but afterwards, it increases the efficiency. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

20 pages, 1130 KiB

Open AccessArticle

The Investigation of Preference Attributes of Indonesian Mobile Banking Users to Develop a Strategy for Mobile Banking Adoption

by Toto Edrinal Sebayang, Dedi Budiman Hakim, Toni Bakhtiar and Dikky Indrawan

J. Risk Financial Manag. 2024, 17(3), 109; https://doi.org/10.3390/jrfm17030109 - 7 Mar 2024

Viewed by 2071

Abstract

A new normal has been established as a result of the effects of the COVID-19 pandemic on social behavior, technology, and business. This has a significant effect on how technology is used, such as mobile banking services, which offer more hygienic and secure payment alternatives than cash. Mobile banking has been viewed as having the ability to enhance access to unbanked customers in developing economies such as Indonesia, where 100 million people remain unbanked. This study aims to develop strategies using importance-performance analysis (IPA) to improve adoption based on the perceived importance and performance of 1441 mobile banking users during the COVID-19 pandemic. Data were collected using an online questionnaire administered during the period of September 2022 to March 2023 using the mobile banking adoption attributes of Attitude, Perceived Usefulness, Perceived Ease of Use, Compatibility, Subjective Norm, Interpersonal Influence, External Influence, Perceived Behavior Control, facilitating conditions, self-efficacy, firm reputation, trust, disease risk, performance risk, financial risk, privacy risk, time risk, psychological risk, and perceived risk. IPA results were divided into four quadrants: “concentrate here”, “keep up the good work”, “low priority”, and “possible overkill” with a representation that respondents regard as important and well-addressed. The findings show that bank strategists seeking competitive advantage must push innovation efforts to protect users by improving privacy risk and financial risk and enhancing mobile banking security from potential cyberattacks. Digital banks and associated institutions need to educate mobile banking customers on the benefits of security measures for these services, which may improve confidence and trust, and consequently, accelerate mobile banking adoption. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

13 pages, 234 KiB

Open AccessArticle

Did Emotional Intelligence Traits Mitigate COVID-19 Uncertainty Effects on Financial Institutions’ Board Decision-Making Process?

by Jessica Hall, Gregory Jones, Claire Beattie and John Sands

J. Risk Financial Manag. 2024, 17(3), 106; https://doi.org/10.3390/jrfm17030106 - 6 Mar 2024

Viewed by 1534

Abstract

This study uses a qualitative research mixed methods design to explore the Coronavirus pandemic’s uncertainty effect on mature board governance practices and a board decision processes framework within 16 large Australian financial services entities. Findings provide support for two effects. Firstly, the Coronavirus pandemic had led to a hesitation effect on the board members on-going journey of developing a conscious sense of ‘self’ and awareness. Secondly, the skills and diversity of personalities of directors comprising the board has a positive impact on the effectiveness and success of strategic decisions. The ongoing ambiguity impact of the Coronavirus pandemic on effective board decision-making processes was investigated. The board members expressed confidence in the Australian financial services sector’s ability to overcome the global Coronavirus pandemic’s temporary uncertainty impact on board decision processes frameworks. Future research may extend the focus to senior executives’ or owners’ EI personality traits to investigate the relationship between such individual’s or teams’ traits and ongoing effective board decision-making processes during uncertainty in either developing or developed countries or a cross-cultural study. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

14 pages, 3334 KiB

Open AccessArticle

COVID-19 Pandemic and Indices Volatility: Evidence from GARCH Models

by Rajesh Mamilla, Chinnadurai Kathiravan, Aidin Salamzadeh, Léo-Paul Dana and Mohamed Elheddad

J. Risk Financial Manag. 2023, 16(10), 447; https://doi.org/10.3390/jrfm16100447 - 17 Oct 2023

Cited by 2 | Viewed by 2464

Abstract

This study examines the impact of volatility on the returns of nine National Stock Exchange (NSE) indices before, during, and after the COVID-19 pandemic. The study employed generalized autoregressive conditional heteroskedasticity (GARCH) modelling to analyse investor risk and the impact of volatility on returns. The study makes several contributions to the existing literature. First, it uses advanced volatility forecasting models, such as ARCH and GARCH, to improve volatility estimates and anticipate future volatility. Second, it enhances the analysis of index return volatility. The study found that the COVID-19 period outperformed the pre-COVID-19 and overall periods. Since the Nifty Realty Index is the most volatile, Nifty Bank, Metal, and Information Technology (IT) investors reaped greater returns during COVID-19 than before. The study provides a comprehensive review of the volatility and risk of nine NSE indices. Volatility forecasting techniques can help investors to understand index volatility and mitigate risk while navigating these dynamic indices. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

17 pages, 319 KiB

Open AccessArticle

Does Financial Technology Adoption Influence Bank’s Financial Performance: The Case of Jordan

by Thair A. Kaddumi, Hafez Baker, Mahmoud Daoud Nassar and Qais A-Kilani

J. Risk Financial Manag. 2023, 16(9), 413; https://doi.org/10.3390/jrfm16090413 - 18 Sep 2023

Cited by 3 | Viewed by 3598

Abstract

This research will examine the impact of the adoption of financial technology on conventional banks’ financial performances. The research will place emphasis on the listed commercial banks at Amman Stock Exchange—ASE, using financial data for the period 2012–2020. The main study tool was a questionnaire that focuses on three main dimensions: financial inclusion—(FI), alternative payment methods—(APMs) and automation—(Auto). A total of 115 questionnaires were distributed to all commercial banks listed at Amman Stock Exchange—ASE. Multivariate regression analysis was employed to test the impact of the FinTech dimension as a proxy for independent variables on Jordanian commercial bank’s financial performance as a proxy for dependent variables. Based on the analysis results, the study concludes that all three FinTech dimensions: FI, APMs and Auto. reflected a positive significant impact on Jordanian commercial bank’s financial performance indicators (total deposit, total loans and net profit margin). Therefore, banks in general should invest more and more into financial technology tools and applications, in order to recruit potential clients and retain their current clients, to be able to sustain under fierce competition within the banking sector. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

25 pages, 766 KiB

Open AccessArticle

The Impact of Multi-Layer Corporate Governance on Banks’ Performance under the GFC and the COVID-19: A Cross-Country Panel Analysis Approach

by Oumniya Amrani and Amal Najab

J. Risk Financial Manag. 2023, 16(1), 15; https://doi.org/10.3390/jrfm16010015 - 27 Dec 2022

Cited by 3 | Viewed by 3756

Abstract

This paper examines the impact of multi-layer corporate governance (MCG) on banks’ performance under the global financial crisis (GFC) and COVID-19. Using a random and fixed effects method, we regressed the impact of MCG variables on return on assets (ROA), return on equity (ROE), and non-performing loans (NPL) of a panel data of 44 conventional banks (CBs) and 40 Islamic banks (IBs), across 17 countries, and over the period from 2006 to 2020. The results show that board of directors (BoD)’ structure has no association with CBs performance whereas the chief executive officer (CEO) duality is strongly negatively impacting CBs performance, especially during the GFC. In addition, supervision framework proxies have a strong positive influence on CBs performance, especially in the period after the GFC. Furthermore, cross-membership and the size of the Shariah board (SB) have a significant negative influence on IBs’ performance, but SB qualification has a positive non-significant impact overall—with the exception of NPLs, which had a positive significant impact during the GFC. The supervision position has a favorable impact on IBs performance except during crises. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

18 pages, 1113 KiB

Open AccessArticle

Impact of COVID-19, Political, and Financial Events on the Performance of Commercial Banking Sector

by Ghulam Ghouse, Muhammad Ishaq Bhatti and Muhammad Hassam Shahid

J. Risk Financial Manag. 2022, 15(4), 186; https://doi.org/10.3390/jrfm15040186 - 18 Apr 2022

Cited by 9 | Viewed by 5123

Abstract

This paper employs a structural empirical model to gauge the possible effects of COVID-19, political and financial events on the returns and volatility of commercial banks. It observes that insured and run-prone uninsured depositors choose between differentiated commercial banks, which appears to be significantly impacted from the present pandemic, especially for the case of Pakistan’s commercial banking sector. The estimated volatility series for commercial banks is measured through the GARCH model, which explains the current financial and political distress for the case of shocks from COVID-19. We calibrate by Impulse Indicator Saturation (IIS) to detect the structural breaks formed by these events in the returns and volatility series of commercial banks. It is observed that the calibrated model possesses almost all financial events that have had a prominent impact on the returns and volatility series whereas two out of eighteen political events are unimpacted. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

24 pages, 1468 KiB

Open AccessArticle

Sovereign Exposures of European Banks: It Is Not All Doom

by Martien Lamers, Thomas Present and Rudi Vander Vennet

J. Risk Financial Manag. 2022, 15(2), 69; https://doi.org/10.3390/jrfm15020069 - 3 Feb 2022

Cited by 4 | Viewed by 2501

Abstract

We investigate whether sovereign bond holdings of European banks are determined by a risk–return trade-off. Using data between 2011 and 2018 for 75 European banks, we confirm that banks exhibited risk-taking behavior during the sovereign debt crisis, e.g., due to moral suasion. In the period 2015–2018, however, banks’ investments in sovereign bonds are characterized by sound risk–return considerations, suggesting a lessening of the doom loop. This result is mainly driven by banks in the core European countries, as banks in the GIPS countries do not exhibit such behavior, nor do they avoid riskier bonds following the sovereign debt crisis. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

22 pages, 2541 KiB

Open AccessArticle

Designing a Roadmap for Human Resource Management in the Banking 4.0

by Iwa Kuchciak and Izabela Warwas

J. Risk Financial Manag. 2021, 14(12), 615; https://doi.org/10.3390/jrfm14120615 - 18 Dec 2021

Cited by 12 | Viewed by 6996

Abstract

The banking sector has been going through a rapid transformation due to digitalization, regulatory requirements, customer expectations, and demographic trends. The purpose of this paper is to provide an advanced overview of the practical applications of human resource management (HRM) in Banking 4.0. This study used quantitative and qualitative methods to present the results of good practice form inventory and a Delphi study. The results of a European study show that human resource management practices such as reskilling, upskilling, and redeployment are a solution to mitigate challenges in the Banking 4.0 era. The HRM roadmap for banks will be a major guide to ensure effective workforce management. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Figure 1

16 pages, 471 KiB

Open AccessArticle

Financial Stability of European Insurance Companies during the COVID-19 Pandemic

by Karolina Puławska

J. Risk Financial Manag. 2021, 14(6), 266; https://doi.org/10.3390/jrfm14060266 - 12 Jun 2021

Cited by 26 | Viewed by 8127

Abstract

The European Insurance and Occupational Pensions Authority suggests that as the coronavirus disease 2019 (COVID-19) pandemic has caused significant disruption to the economy, businesses, and people’s lives, national supervisory authorities should mitigate the pandemic’s impact on the European insurance sector. The functioning of insurance companies is in danger as they must balance a drastic increase in the number of claims with their capital and solvency stability. In this study, we evaluate the effects of the COVID-19 pandemic on insurance companies using European insurance companies’ financial statement data from 2010 to 2020. The results unambiguously demonstrate that the pandemic has negatively affected the functioning of the insurance sector. In particular, the return on assets decreased in German and Italian insurance companies during the pandemic. Furthermore, the solvency ratio decreased in the Belgian, French, and German insurance sectors. Conversely, the Polish insurance sector was unaffected. Moreover, we did not find any effects on the Z-score ratio in our sample. Lastly, the value of receivables owed to Belgian insurance companies increased. Based on this evidence, we argue that European legislators should discuss how to manage the probable financial problems of insurance companies during the COVID-19 pandemic. Full article

(This article belongs to the Special Issue Banking during the COVID-19 Pandemia)

► Show Figures

Journal Menu

Journal Browser

Banking during the COVID-19 Pandemia

Share This Special Issue

Special Issue Editor

Special Issue Information

Benefits of Publishing in a Special Issue

Published Papers (11 papers)

Research

Further Information

Guidelines

MDPI Initiatives

Follow MDPI