Hardback
Handbook of Banking and Finance in Emerging Markets
Emerging markets are increasingly facing significant challenges, from a slowdown in productivity, rising debt, and trade tensions to the adverse effects of proliferating global uncertainty on domestic financial systems. This incisive Handbook examines the ongoing dynamics of global financial markets and institutions within the context of such rising uncertainty and provides a comprehensive overview of innovative models in banking and finance.
More Information
Critical Acclaim
Contributors
Contents
More Information
Emerging markets are increasingly facing significant challenges, from a slowdown in productivity, rising debt, and trade tensions to the adverse effects of proliferating global uncertainty on domestic financial systems. This incisive Handbook examines the ongoing dynamics of global financial markets and institutions within the context of such rising uncertainty and provides a comprehensive overview of innovative models in banking and finance.
Chapters investigate the implications of the COVID-19 pandemic on health and economic activities, as well as other global factors such as geopolitical shifts, digital transformation, and climate change. This expansive range of perspectives demonstrates how emerging market policymakers have been forced to rethink their banking and financial industries to spur sustainable and inclusive growth. Global in scope, the Handbook features contributions from more than 70 experts, offering key insights into new developments in banking and finance, and considering how emerging markets might overcome the pandemic, shape the new normal, and foster economic sustainability.
This ambitious Handbook will be an essential read for regulators and policy analysts who will benefit from its innovative perspectives on advancing governance of banking and finance sectors in emerging markets. Its exploration of forthcoming directions for research will be of special interest to academics and research scholars in related fields.
Chapters investigate the implications of the COVID-19 pandemic on health and economic activities, as well as other global factors such as geopolitical shifts, digital transformation, and climate change. This expansive range of perspectives demonstrates how emerging market policymakers have been forced to rethink their banking and financial industries to spur sustainable and inclusive growth. Global in scope, the Handbook features contributions from more than 70 experts, offering key insights into new developments in banking and finance, and considering how emerging markets might overcome the pandemic, shape the new normal, and foster economic sustainability.
This ambitious Handbook will be an essential read for regulators and policy analysts who will benefit from its innovative perspectives on advancing governance of banking and finance sectors in emerging markets. Its exploration of forthcoming directions for research will be of special interest to academics and research scholars in related fields.
Critical Acclaim
‘Duc Khuong Nguyen offers a multifaceted collection of research on emerging markets that is a must-read for scholars and investors alike. It is one of the most comprehensive books on emerging markets finance and will impress the readers with its fresh perspectives.’
– Rose Liao, Rutgers University, US
‘It was ample time this Handbook was made available to professional investors and financial actors in emerging markets. Congratulations to Duc Khuong Nguyen for gathering such an expert crowd to help us navigate the new emerging world: post global financial crisis, post Covid, post China and BRICS take off, but also aligned with the sustainable development goals and the climate agenda. This is the compass we needed to sail the ocean ahead of us!’
– Bertrand Badré, Blue like an Orange Sustainable Capital, France
– Rose Liao, Rutgers University, US
‘It was ample time this Handbook was made available to professional investors and financial actors in emerging markets. Congratulations to Duc Khuong Nguyen for gathering such an expert crowd to help us navigate the new emerging world: post global financial crisis, post Covid, post China and BRICS take off, but also aligned with the sustainable development goals and the climate agenda. This is the compass we needed to sail the ocean ahead of us!’
– Bertrand Badré, Blue like an Orange Sustainable Capital, France
Contributors
Contributors: Mazin A.M. Al Janabi, Anas Mohammad Hussein Al-Jbour, Maryam Alhalboni, Silvio Andrae, Milojko Arsić, Thankom Arun, Ioanna Avgeri, Ata Can Bertay, Romain Boissin, Johan Bouglet, Yeguang Chi, Shiao-Lan Chou, Manisha Chuttor, Patrick Coggi, Yiannis Dendramis, Shidi Dong, Emmanuelle Dubocage, An Thi Thuy Duong, Daniel Dupuis, Muhammed Shahid Ebrahim, Erik Feyen, Norbert Fiess, Sofía Gallardo, Ghislaine Garmilis, Victoria Geyfman, Max Gillman, Claudia Girardone, Andreas Gruener, Vadim O. Grishchenko, Francesco Guidi, Constantin Gurdgiev, Wahyu Jatmiko, Li Jiaqi, Olivier Joffre, Md. Nurul Kabir, Clemens Kool, Tu DQ Le, Lidia Loban, Helen Louri, Carlos Madeira, Michel Magnan, Isidora Manjante, Pedro Verga Matos, Ron McIver, Olivier Mesly, Pawel Miłobędzki, Zorica Mladenović, Artie Ng, Thanh Ngo, Aleksandra Nojković, Sabina Nowak, Cristina Ortiz, Henry Penikas, Stefano Piserà, Xiao Qiao, Carlo Raimondo, Dinesh Ramdhony, Evelyne Rousselet, Sahminan Sahminan, Antonio Samagaio, Leire San-Jose, Boopen Seetanah, W. Travis Selmier II, Sylvie St-Onge, Karl T. Summanen, Theodore Syriopoulos, Vasily Tkachev, Oliver Vasquez, Luis Vicente, Catherine Vincent, Andrew C. Worthington, Lei Xu, Camilla Yanushevsky, Daniel Yanushevsky, Rafael Yanushevsky, Igor Zuccardi
Contents
Contents:
Preface xxviii
PART I FINANCIAL MARKETS, INSTITUTIONS AND MONEY
1 Booms, bubbles, blow-outs: exploring patterns in China’s credit expansion 2
Ron McIver, Lei Xu and Shiao-Lan Chou
2 Mutual fund investing in the Chinese A-share market 32
Yeguang Chi and Xiao Qiao
3 Liquidity and ex-dividend behavior in emerging markets 51
Daniel Dupuis
4 Asset-based valuation: a modified discounted cash flow approach 70
Rafael Yanushevsky, Daniel Yanushevsky and Camilla Yanushevsky
5 Financial integration in Asia: some empirical evidence 83
An Thi Thuy Duong and Clemens Kool
6 Application of the neural F-Score in Latin American stock markets 104
Lidia Loban, Cristina Ortiz and Luis Vicente
7 Market-liquidity risk modeling and reinforcement machine learning algorithms
under extreme market outlooks: applications to emerging markets 115
Mazin A.M. Al Janabi
8 The components of bid–ask spread on the Warsaw Stock Exchange 131
Paweł Miłobędzki and Sabina Nowak
PART II BANKING PROFITABILITY, EFFICIENCY AND STABILITY
9 Bank profitability in the euro area: the asymmetric effect of common
supervision 153
Ioanna Avgeri, Yiannis Dendramis and Helen Louri
10 The journey of a thousand miles: a decade of the impact of foreign
shareholders on the performance of Chinese commercial banks 176
Constantin Gurdgiev and Li Jiaqi
11 The determinants of commercial banks’ profitability in the South-Eastern
Europe region: a system GMM approach 200
Francesco Guidi
12 Determinants of commercial banks’ performance in Mozambique 218
Antonio Samagaio, Pedro Verga Matos and Isidora Manjate
13 Impact of information and communication technology on banking efficiency:
the Vietnamese experience 238
Thanh Ngo and Tu Le
14 Competition, efficiency and stability in Islamic and conventional banking
systems: an emerging market perspective 254
Md. Nurul Kabir and Andrew C. Worthington
15 Central bank independence, macroprudential policies and financial stability in
the Mauritian context 274
Manisha Chuttoor, Dinesh Ramdhony and Boopen Seetanah
PART III TOWARDS FINANCIAL RESILIENCE AND SUSTAINABILITY
16 Sustainable investing in emerging markets 298
Andreas Gruener
17 ESG issues in emerging markets and the role of banks 321
Thankom Arun, Claudia Girardone and Stefano Piser.
18 Corporate social responsibility disclosure and cost efficiency of Islamic
banks: evidence from GCC countries 345
Anas Mohammad Hussein Al-Jbour, Lei Xu, Damien Wallace and
Guodong Yuan
19 Credit risk management and practices in Islamic and conventional banks:
an emerging market perspective 366
Mahfod Aldoseri and Andrew C. Worthington
20 Stakes and challenges in the development of impact investing in emerging
markets: the case of Asia 378
Emmanuelle Dubocage and Evelyne Rousselet
21 Consumer financial spinning and market stress factors in emerging markets 394
Olivier Mesly
22 Analyst coverage of emerging market IPOs and legal environment 419
Romain Boissin
PART IV INNOVATIVE MODELS IN BANKING AND FINANCE
23 The role of BigTech in emerging markets 433
Silvio Andrae
24 The digital revolution in financial services: new business models and talent
challenges 464
Sylvie St-Onge, Michel Magnan and Catherine Vincent
25 Ethics and trust on Fintech platforms from an emerging markets perspective 479
Oliver Vasquez and Leire San-Jose
26 Challenges and opportunities for crowdfunding in emerging markets: an
ethical perspective 492
Johan Bouglet, Ghislaine Garmilis and Olivier Joffre
27 Rationalizing the Takaful organizational form with institutional theory 506
Maryam Alhalboni, Muhammed Shahid Ebrahim and Wahyu Jatmiko
28 Artificial intelligence in an emerging portfolio manager: the case of Evovest 523
Sylvie St-Onge, Catherine Vincent and Michel Magnan
PART V EMERGING TRENDS
29 Emerging green finance hubs in Asia: regulatory initiatives for ESG investing
and green bond development by the Four Tigers 539
Artie W. Ng
30 Enhancing sustainability reporting and greening the finance system:
institutionalization and practices in China’s banking sector 553
Shidi Dong, Lei Xu and Ron McIver
31 Cross-border banking in EMDEs: trends, scale, and policy implications 573
Erik Feyen, Norbert Fiess, Ata Can Bertay and Igor Zuccardi Huertas
32 The Swiss banking experience and lessons learned for emerging markets: the
roles of digitalization and sustainability 597
Carlo Raimondo and Patrick Coggi
33 Financial development of CEE markets and the evolving role of foreign-owned
multinational banks 619
Victoria Geyfman
34 Key rate pass-through to deposit rates: experience from the pandemic era 634
Henry Penikas
35 Inflation targeting and fiscal discipline in selected emerging economies 651
Milojko Arsić, Zorica Mladenović and Aleksandra Nojković
PART VI NEW PERSPECTIVES
36 The role of financial surveys for economic research and policy making in
emerging markets 676
Sof.a Gallardo and Carlos Madeira
37 Emerging regions in the era of negative real interest rates: twenty years of
convergence towards the US? 687
Max Gillman
38 The Indonesian banking sector during the COVID-19 pandemic 710
Sahminan Sahminan
39 Bank finance and alternative instruments in capital-intensive sectors: the case
of global shipping 731
Theodore Syriopoulos
40 The Russian financial sector: opportunities in an unstable environment and
sanctions 763
Vasily Tkachev, Vadim Grishchenko and Karl Summanen
41 Conflict, contention and cooperation in China’s new model of financial
intermediation monitoring 793
W. Travis Selmier II
Index 811
Preface xxviii
PART I FINANCIAL MARKETS, INSTITUTIONS AND MONEY
1 Booms, bubbles, blow-outs: exploring patterns in China’s credit expansion 2
Ron McIver, Lei Xu and Shiao-Lan Chou
2 Mutual fund investing in the Chinese A-share market 32
Yeguang Chi and Xiao Qiao
3 Liquidity and ex-dividend behavior in emerging markets 51
Daniel Dupuis
4 Asset-based valuation: a modified discounted cash flow approach 70
Rafael Yanushevsky, Daniel Yanushevsky and Camilla Yanushevsky
5 Financial integration in Asia: some empirical evidence 83
An Thi Thuy Duong and Clemens Kool
6 Application of the neural F-Score in Latin American stock markets 104
Lidia Loban, Cristina Ortiz and Luis Vicente
7 Market-liquidity risk modeling and reinforcement machine learning algorithms
under extreme market outlooks: applications to emerging markets 115
Mazin A.M. Al Janabi
8 The components of bid–ask spread on the Warsaw Stock Exchange 131
Paweł Miłobędzki and Sabina Nowak
PART II BANKING PROFITABILITY, EFFICIENCY AND STABILITY
9 Bank profitability in the euro area: the asymmetric effect of common
supervision 153
Ioanna Avgeri, Yiannis Dendramis and Helen Louri
10 The journey of a thousand miles: a decade of the impact of foreign
shareholders on the performance of Chinese commercial banks 176
Constantin Gurdgiev and Li Jiaqi
11 The determinants of commercial banks’ profitability in the South-Eastern
Europe region: a system GMM approach 200
Francesco Guidi
12 Determinants of commercial banks’ performance in Mozambique 218
Antonio Samagaio, Pedro Verga Matos and Isidora Manjate
13 Impact of information and communication technology on banking efficiency:
the Vietnamese experience 238
Thanh Ngo and Tu Le
14 Competition, efficiency and stability in Islamic and conventional banking
systems: an emerging market perspective 254
Md. Nurul Kabir and Andrew C. Worthington
15 Central bank independence, macroprudential policies and financial stability in
the Mauritian context 274
Manisha Chuttoor, Dinesh Ramdhony and Boopen Seetanah
PART III TOWARDS FINANCIAL RESILIENCE AND SUSTAINABILITY
16 Sustainable investing in emerging markets 298
Andreas Gruener
17 ESG issues in emerging markets and the role of banks 321
Thankom Arun, Claudia Girardone and Stefano Piser.
18 Corporate social responsibility disclosure and cost efficiency of Islamic
banks: evidence from GCC countries 345
Anas Mohammad Hussein Al-Jbour, Lei Xu, Damien Wallace and
Guodong Yuan
19 Credit risk management and practices in Islamic and conventional banks:
an emerging market perspective 366
Mahfod Aldoseri and Andrew C. Worthington
20 Stakes and challenges in the development of impact investing in emerging
markets: the case of Asia 378
Emmanuelle Dubocage and Evelyne Rousselet
21 Consumer financial spinning and market stress factors in emerging markets 394
Olivier Mesly
22 Analyst coverage of emerging market IPOs and legal environment 419
Romain Boissin
PART IV INNOVATIVE MODELS IN BANKING AND FINANCE
23 The role of BigTech in emerging markets 433
Silvio Andrae
24 The digital revolution in financial services: new business models and talent
challenges 464
Sylvie St-Onge, Michel Magnan and Catherine Vincent
25 Ethics and trust on Fintech platforms from an emerging markets perspective 479
Oliver Vasquez and Leire San-Jose
26 Challenges and opportunities for crowdfunding in emerging markets: an
ethical perspective 492
Johan Bouglet, Ghislaine Garmilis and Olivier Joffre
27 Rationalizing the Takaful organizational form with institutional theory 506
Maryam Alhalboni, Muhammed Shahid Ebrahim and Wahyu Jatmiko
28 Artificial intelligence in an emerging portfolio manager: the case of Evovest 523
Sylvie St-Onge, Catherine Vincent and Michel Magnan
PART V EMERGING TRENDS
29 Emerging green finance hubs in Asia: regulatory initiatives for ESG investing
and green bond development by the Four Tigers 539
Artie W. Ng
30 Enhancing sustainability reporting and greening the finance system:
institutionalization and practices in China’s banking sector 553
Shidi Dong, Lei Xu and Ron McIver
31 Cross-border banking in EMDEs: trends, scale, and policy implications 573
Erik Feyen, Norbert Fiess, Ata Can Bertay and Igor Zuccardi Huertas
32 The Swiss banking experience and lessons learned for emerging markets: the
roles of digitalization and sustainability 597
Carlo Raimondo and Patrick Coggi
33 Financial development of CEE markets and the evolving role of foreign-owned
multinational banks 619
Victoria Geyfman
34 Key rate pass-through to deposit rates: experience from the pandemic era 634
Henry Penikas
35 Inflation targeting and fiscal discipline in selected emerging economies 651
Milojko Arsić, Zorica Mladenović and Aleksandra Nojković
PART VI NEW PERSPECTIVES
36 The role of financial surveys for economic research and policy making in
emerging markets 676
Sof.a Gallardo and Carlos Madeira
37 Emerging regions in the era of negative real interest rates: twenty years of
convergence towards the US? 687
Max Gillman
38 The Indonesian banking sector during the COVID-19 pandemic 710
Sahminan Sahminan
39 Bank finance and alternative instruments in capital-intensive sectors: the case
of global shipping 731
Theodore Syriopoulos
40 The Russian financial sector: opportunities in an unstable environment and
sanctions 763
Vasily Tkachev, Vadim Grishchenko and Karl Summanen
41 Conflict, contention and cooperation in China’s new model of financial
intermediation monitoring 793
W. Travis Selmier II
Index 811
