Safe Bank

When there is an economic downturn, financial crime proliferates and people are more likely to commit fraud. One of the most common frauds is when a loan is secured without any intention of repaying it. Credit crime is a significant risk to financial institutions and has recently led to increased interest in fraud prevention systems. The most important features of such systems are the determinants (warning signals) that allow you to identify potentially fraudulent transactions. The purpose of this paper is to identify warning signals using the following data mining techniques - logistic regression, decision trees and neural networks.
Proper identification of the determinants of a fraudulent transaction can be useful in further analysis, i.e. in the segmentation process or assignment of fraud likelihood. Data obtained in this way allows profiles to be defined for fraudulent and non-fraudulent applicants. Various fraud-scoring models have been created and presented.

The article presents the principal conclusions from the analysis of the delegated act on the liquidity coverage requirement adopted by the European Commission in October 2014. The delegated act was analysed in line with the Basel IIII accord in order to identify the main differences and to assess whether the alterations proposed by the European Commission pose a threat to the prudential objective of the liquidity regulation. The main conclusion is that the prudential objective of the liquidity coverage requirement cannot be assured as the majority of changes proposed to the delegated act, as compared with the Basel rules, lead to an increase in the average level of the ratio, while the main purpose of the European Commission was to stimulate growth and facilitate lending to the real economy.

The aim of this paper is to assess the impact of foreign banks’ withdrawals on banking sector concentration. The past decade has been characterized by large scale foreign bank withdrawals from countries where these institutions represent a significant part of the banking sector. An empirical analysis has been conducted for the banking sectors of 53 countries over the period 1997 to 2008. The major finding is that the foreign banks’ withdrawals are positively correlated with banking concentration. The greatest magnitude of the effect can be seen with respect to the deposit market. Surprisingly, however, we do not notice any greater effect of acquisition of divested banks on banking sector concentration as compared to other forms of withdrawals. This might suggest a tendency to split up banking operations among many market players.

The aim of this paper is to analyse the vulnerability of Polish cooperative banks to changes in macroeconomic environments within the poviats where those banks operate. We find that the profitability, cost income and growth of cooperative banks are strongly related to local conditions. Banks headquartered in poviats with lower unemployment are able to report healthier earnings and leaner cost structures, and face better growth prospects. Deteriorations and revivals in poviats are reflected in bank performance and growth, demonstrating the sensitivity of these banks to local developments not necessarily mirrored in national economic indicators. In addition, despite homogeneity within the cooperative banking sector, we demonstrate differences in the relation of performance and economic situation between subgroups of small, medium-sized and large banks.

For analysts of the crisis it is important to find out whether financial market disturbances occurred simultaneously for different segments of this market. If certain lags are identified, this might form a basis to establish the direction of capital flows. The research hypothesis about the simultaneous occurrence of capital and interbank market disturbances was verified by using cospectral analysis. The results of empirical research that are presented in this article indicate that the covariance of the studied segments of the financial market in the U.S. was very low. This means that the capital market only showed a delayed reaction to single impulses coming from the interbank market in relation to certain crisis events.

The article aims to present the history of research relating to deposit insurance. It identifies the main fields of interest in selected periods of study, presents the policy conclusions and indicates papers written by the most popular authors handling these topics. Deposit insurers seem to be the least scientifically examined financial safety net participants. The post-crisis regulatory reforms in financial markets all over the world require a redefinition of the role of deposit insurance. The authors sum up the research in the field of deposit insurance performed so far and indicate the new research challenges and rationale for undertaking them.