Corporate Governance in European Banks: Essays on Bank Ownership

Banks are important as they have a central role in the financial system, where funds are channelled either through financial intermediaries, such as banks, or through financial markets, hence promoting growth in any economy. Recently, we have been reminded of the drawbacks of the central role of banks. The current financial crisis, which started out as a sub-prime mortgage crisis in the US, has become a global financial crisis with substantial impact on the real economy in many countries. Some of the roots to the current financial crisis can be sought in the changing role of banks and in bank corporate governance. Moreover, the substantial revitalising measures taken have been justified by the central role of banks. Not only are banks important, they are also very special. The fact that banks are regulated in conjunction with greater opacity, make bank corporate governance different from corporate governance in non-bank companies. Surprisingly little is, however, known about bank corporate governance, in particularly, in a European setting. Hence, the objective of this doctoral thesis is to provide new insights in this research area by examining banks from 37 different European countries. Each of the three essays included in the doctoral thesis examines a particular aspect of bank corporate governance. In the first essay the interaction between the regulatory environment a bank operates in and its ownership structure is explored. Indicators of the severity of the moral hazard problem induced by the deposit insurance system and implicit too-big-to-fail government guarantee, particular features of deposit insurance systems as well as legal protection of shareholders, legal origin of a country and level of integration to the European community are used in the analysis. The empirical findings confirm previous findings on the link between legal protection of shareholders and ownership structure. Moreover, they show that differences in deposit insurance system features can explain some of the differences in ownership structure across European banks. In the second essay the impact of management and board ownership on the profitability of banks with different strategy is examined. The empirical findings suggest that the efficiency of these two particular corporate governance mechanisms varies with the characteristics of the agency problem faced by the bank. More specifically, management ownership is important in opaque non-traditional banks, whereas board ownership is important in traditional banks, where deposit insurance reduces the monitoring incentives of outsiders. The higher profitability does, however, go together with higher risk. In the third essay the profitability and risk of commercial, savings and cooperative banks are compared. The empirical findings suggest that distinct operational and ownership characteristics rather than only the mere fact that a bank is a commercial, savings or cooperative bank explain the profitability and risk differences. The main insight from the three essays is that a number of different aspects should be addressed simultaneously in order to give the complexity of bank corporate governance justice.

The Northern Rockfish, Sebastes polyspinis, in Alaska: Commercial Fishery, Distribution, and Biology

The northern rockfish, Sebastes polyspinis, is the second most abundant rockfish in Alaska, and it supports a valuable trawl fishery. Little information is available, however, on either the biology of this species or its commercial fishery. To provide a synopsis of information on northern rockfish in Alaska, this study examined data for this species from commercial fishery observations in 1990–98 and from fishery-independent trawl surveys in 1980–99. Nearly all the commercial catch came from bottom trawling, mostly by large factory-trawlers, although smaller shore-based trawlers in recent years took an increasing portion of the catch in the Gulf of Alaska. Most of the northern rockfish catch in the Gulf of Alaska was taken by a directed fishery, whereas that of the Aleutian Islands predominantly came as discarded bycatch in the Atka mackerel fishery. In both regions, most of the catch was taken from a number of relatively small and discrete fishing grounds at depths of 75–150 m in the Gulf of Alaska and 75–175 m in the Aleutian Islands. These grounds, especially in the Gulf of Alaska, are on shallow rises or banks located on the outer continental shelf, and often are surrounded by deeper water. Five fishing grounds were identified in the Gulf of Alaska, and eleven in the Aleutian Islands. One fishing ground in the Gulf of Alaska, the “Snakehead” south of Kodiak Island, accounted for 46% of the total northern rockfish catch in this region. Analysis of the survey data generally revealed similar patterns of geographic distribution as those seen in the fishery, although some of the commercial fishing grounds did not stand out as areas of special abundance in the surveys. The surveys also found two areas of abundance that were not evident in the fishery data. Relatively few juvenile northern rockfish were caught in any of the surveys, but those taken in the Gulf of Alaska tended to occur more inshore and at shallower depths than adults. Individual size of northern rockfish was substantially larger in the Gulf of Alaska than in the Aleutian Islands according to both fishery and survey data. Analysis of age data from each region supports this, as Gulf of Alaska fish were found to grow significantly faster and reach a larger maximum length than those in the Aleutian Islands. Sex ratio in the Gulf of Alaska was nearly 50:50, but females predominated in the Aleutian Islands by a ratio of 57:43. In both regions, size of females was significantly larger than males.

Biogeographic characterization of fish communities and associated benthic habitats within the Flower Garden Banks National Marine Sanctuary: sampling design and implementation of scuba surveys on the coral caps

The Flower Garden Banks National Marine Sanctuary (FGBNMS) is located in the northwestern Gulf of Mexico approximately 180 km south of Galveston, Texas. The sanctuary’s distance from shore combined with its depth (the coral caps reach to within approximately 17 m of the surface) result in limited exposure of this coral reef ecosystem to natural and human-induced impacts compared to other coral reefs of the western Atlantic. In spite of this, the sanctuary still confronts serious impacts including hurricanes events, recent outbreaks of coral disease, an increase in the frequency of coral bleaching and the massive Diadema antillarum die-off during the mid-1980s. Anthropogenic impacts include large vessel anchoring, commercial and recreational fishing, recreational scuba diving, and oil and gas related activities. The FGBNMS was designated in 1992 to help protect against some of these impacts. Basic monitoring and research efforts have been conducted on the banks since the 1970s. Early on, these efforts focused primarily on describing the benthic communities (corals, sponges) and providing qualitative characterizations of the fish community. Subsequently, more quantitative work has been conducted; however, it has been limited in spatial scope. To complement these efforts, the current study addresses the following two goals put forth by sanctuary management: 1) to develop a sampling design for monitoring benthic fish communities across the coral caps; and 2) to obtain a spatial and quantitative characterization of those communities and their associated habitats.

Resources of the Wadge and Pedro Banks

Sri Lanka's interest in trawler fishing dates back to 1902 when a Colombo merchant attempted to operate a trawler off Sri Lanka's waters. The next attempt was made in 1907. These attempts did not proceed any further. Between 1920 and 1923 a very comprehensive survey of the littoral waters around the island was carried out. One of the principal aims of the survey was to investigate the possibility of trawler fishing in the seas around. Malpas (1926) and Pearson and Malpas (1926) reporting the results of the survey indicated that the Wadge and Pedro banks were the only areas available for commercial trawler operations and indicated that the fish resources in the two banks could be profitably exploited. Commercial exploitation of the Wadge bank commenced in 1928 and a fishery is now firmly established in the bank. The Marine Biologist and the Director of fisheries in their administration reports and Sivalingam and Medcof (1957) and the author (1965) have reported on the progress of the Wadge bank fishery. Some of the trends indicated by an analysis of the records of the commercial trawling operations are further discussed in this paper.

Portuguese commercial banking: An assessment of competition in the 1960-2013 period

Strong consolidation is one of the most evident developments of banking markets around the world in recent decades. This change is raising questions on how and to what an extent competition is affected by the expansion of the largest banks. The aim of the present study is to measure the degree of competition in the Portuguese commercial banking market in the long-run, during the period ranging from1960 to 2013, by using the non-structural model developed by Panzar and Rosse. The main findings are that the Portuguese banking system, despite the legal restrictions in place, operated mostly in a market with some degree of competition and, at some points in time, presented some interesting competitive features. More recently, it has evolved into functioning as a cartel.

Performance of six diagnostic tests to screen for Chagas disease in blood banks and prevalence of Trypanosoma cruzi infection among donors with inconclusive serology screening based on the analysis of epidemiological variables

OBJECTIVE: The frequent occurrence of inconclusive serology in blood banks and the absence of a gold standard test for Chagas'disease led us to examine the efficacy of the blood culture test and five commercial tests (ELISA, IIF, HAI, c-ELISA, rec-ELISA) used in screening blood donors for Chagas disease, as well as to investigate the prevalence of Trypanosoma cruzi infection among donors with inconclusive serology screening in respect to some epidemiological variables. METHODS: To obtain estimates of interest we considered a Bayesian latent class model with inclusion of covariates from the logit link. RESULTS: A better performance was observed with some categories of epidemiological variables. In addition, all pairs of tests (excluding the blood culture test) presented as good alternatives for both screening (sensitivity > 99.96% in parallel testing) and for confirmation (specificity > 99.93% in serial testing) of Chagas disease. The prevalence of 13.30% observed in the stratum of donors with inconclusive serology, means that probably most of these are non-reactive serology. In addition, depending on the level of specific epidemiological variables, the absence of infection can be predicted with a probability of 100% in this group from the pairs of tests using parallel testing. CONCLUSION: The epidemiological variables can lead to improved test results and thus assist in the clarification of inconclusive serology screening results. Moreover, all combinations of pairs using the five commercial tests are good alternatives to confirm results.

Deregulation and Structural Change in the U.S. Commercial Banking Industry

Regulatory change not seen since the Great Depression swept the U.S. banking industry beginning in the early 1980s and culminated with the Interstate Banking and Branching Efficiency Act of 1994. Banking analysts anticipated dramatic consolidation with large numbers of mergers and acquisitions. Some expressed concern about the long-term health of the smaller community banks. This paper describes and discusses the actual evolution of the U.S. banking industry over the past two decades, using the 1976 to 1998 Report of Condition and Income (Call Report) and merger data recently posted on the web site of the Federal Reserve Bank of Chicago. Among several results, more permissive interstate banking and branching regulation significantly associates with higher merger rates, with lower net entry rates, and with higher concentration within states. Interestingly, more permissive intrastate banking and branching regulation only associates with higher concentration.

Benthic and substrate cover data derived from a time series of photo-transect surveys for the Eastern Banks, Moreton Bay Australia, 2004-2015

This paper describes seagrass species and percentage cover point-based field data sets derived from georeferenced photo transects. Annually or biannually over a ten year period (2004-2015) data sets were collected using 30-50 transects, 500-800 m in length distributed across a 142 km**2 shallow, clear water seagrass habitat, the Eastern Banks, Moreton Bay, Australia. Each of the eight data sets include seagrass property information derived from approximately 3000 georeferenced, downward looking photographs captured at 2-4 m intervals along the transects. Photographs were manually interpreted to estimate seagrass species composition and percentage cover (Coral Point Count excel; CPCe). Understanding seagrass biology, ecology and dynamics for scientific and management purposes requires point-based data on species composition and cover. This data set, and the methods used to derive it are a globally unique example for seagrass ecological applications. It provides the basis for multiple further studies at this site, regional to global comparative studies, and, for the design of similar monitoring programs elsewhere.

Analyzing the commercial activities of a street network by ranking their nodes: a case study in Murcia, Spain

Urban researchers and planners are often interested in understanding how economic activities are distributed in urban regions, what forces influence their special pattern and how urban structure and functions are mutually dependent. In this paper, we want to show how an algorithm for ranking the nodes in a network can be used to understand and visualize certain commercial activities of a city. The first part of the method consists of collecting real information about different types of commercial activities at each location in the urban network of the city of Murcia, Spain. Four clearly differentiated commercial activities are studied, such as restaurants and bars, shops, banks and supermarkets or department stores, but obviously we can study other. The information collected is then quantified by means of a data matrix, which is used as the basis for the implementation of a PageRank algorithm which produces a ranking of all the nodes in the network, according to their significance within it. Finally, we visualize the resulting classification using a colour scale that helps us to represent the business network.

The Commercial & financial chronicle ... : a weekly newspaper representing the industrial interests of the United States.

Microform.

National symposium on commercial truck exposure estimation. Volume I: summary.

National Highway Traffic Safety Administration, Washington, D.C.

Technology and labor in oil and gas, extraction and commercial banking.

Mode of access: Internet.

The Commercial and financial chronicle.

Description based on: Jan. 9, 1909.