Joseph G. Nellis

Does ownership affect the efficiency of african banks

In the last few years, there has been an extensive debate as to whether ownership matters for bank performance in less developed countries. This paper investigates whether privately-owned banks outperform state-owned banks and whether foreign ownership enhances bank performance. Based on a range of performance ratios as well as parametric and non-parametric estimations, the results show that in Africa, on average, privately-owned banks do not appear to outperform state-owned banks. However, where private ownership involves foreign ownership then this does seem to have a positive effect on bank performance. Both sets of results are affected by high variance in the data suggesting that in state-owned and privately-owned banks and in domestic and foreign-owned banks there are widely differing levels of efficiency. In addition, we also test for the effects of ownership taking into account environmental, including regulatory, variables. The study reports results for banking across Africa and in two separate regions, North Africa and sub-Saharan Africa. We also test for country-level effects.

The effects of ownership on bank efficiency in Latin America

In recent years many countries have privatised their state-owned banks and encouraged foreign investment. This article investigates the roles of state and private ownership and foreign and domestic ownership on the performance of banks across Latin America. Using a range of financial and economic ratios, data envelopment analysis (DEA) and regression modelling, the study reveals that by 2001 there was surprisingly little difference in performance between state-owned and privately-owned banks and between foreign and domestically-owned banks. The study also reports significantly different levels of bank performance in different Latin American countries, suggesting that country differences outweighed ownership differences in explaining performance.

The impact of deregulation on the UK building society branch network in the 1990s

Against a background of deregulatory change both within the UK and the broader European context, examines the future prospects for building society branch networks. Identifies the important determinants of change and discusses: technological innovations, the need for greater profitability, the threat from non‐bank retailers and the impact of the single European market. Discusses the implications of these processes and their possible effect on the future of building society branch networks. Focuses on practical strategic and management issues examining the implications of change for the recruitment and retention of branch staff, staff training and development, the status and role of branch managers and the measurement of branch performance.

Development of standardized indices for measuring house price inflation incorporating physical and locational characteristics

The measurement of house price inflation over time is considered, and a methodological approach to the problem proposed. The measurement technique presented incorporates physical and locational features in the house price model. Results are presented for regional and UK data over the time period 1983(1)–1989(4).

Product development in UK retail banking

Purpose – The paper examines how product innovation in the UK banking industry has been affected and is likely to be affected by changes in regulation and in government policy. It considers the issues faced by banks in pursuing a market‐oriented approach in this environment.Design/methodology/approach – The rapidly changing regulatory environment in the UK is described and analysed, primarily in the context of the market for mortgage products and medium‐ to long‐term savings products. The paper describes the main events of the last 20 years and analyse their immediate impacts. The paper examines the most recent changes, identify the direction of policy change and consider the implications.Findings – Empirical evidence suggests that the development of mortgage and pensions products has been closely linked to changes in regulation and government policy. This has resulted in an adverse impact on the brand values and reputations of banks. An analysis of the most recent events identifies two different regulato...

Principles of Applied Statistics.

10. Principles of Applied Statistics. By M. C. Fleming and J. G. Nellis. ISBN 0 415 07379 0. Routledge, London, 1994. xx + 400 pp. £14.99.

Bank merger and acquisitions activity in the EU: much ado about nothing?

This paper investigates the patterns of consolidation within the European banking industry and examines the efficiency of the banks involved in the merger and acquisitions (M&A) activity to determine whether their performance improved as a result of M&A decisions. The performance of these banks is compared with that of other large banks, which have chosen alternative routes of development. The period covered is 1998 to 2004. The findings suggest that banks involved in M&A activity are more efficient after the M&A or when compared with other large banks. Country-specific characteristics appear to play an important role in explaining the results.

Travel abroad or stay at home?: Investigating the patterns of bank industry M&As in the EU

Purpose – The purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions (M&As) and the regulatory framework that underpins these processes. It aims to identify the key challenges that have to be addressed if M&As are to expand.Design/methodology/approach – The paper reviews the reasons that have led some financial institutions to merge, both domestically and cross‐border, and the developments that have taken place in the economic, legal and political environment. The paper presents an empirical analysis of bank industry M&As within the EU between 1993‐2004 and identifies possible explanations for the patterns of consolidation.Findings – The analysis provides evidence that M&As predominantly take place at the national level and that two main strategies have emerged, namely the consolidation of commercial banking and the creation of universal banking groups.Research limitations/implications – ...

“The Price You Pay”: The Impact of State-Funded Secondary School Performance on Residential Property Values in England

This paper examines the relationship between state-funded secondary school performance and local residential property values in seven major English cities. When choosing which secondary school they wish their children to attend, parents will be aware of the school’s performance in Key Stage 3, GCSE and A- level examinations. We suggest that GCSE examination results will be the measure of school performance that parental choice will be most closely correlated with. Therefore, secondary schools with good GCSE examination results will be “oversubscribed” in that more students will wish to attend these schools than there are places available. Schools will then have to develop mechanisms for rationing the available places - central to rationing strategies in English schools at the moment is geographical proximity of the family home to the school of choice. Parents will thus have a strong incentive to purchase houses in the “catchment” area of high performing schools. Our results suggest that this is the case, with high performing schools stimulating a price premium in local residential property markets of between 1% and 3% for each additional 10% point improvement in the pass rate in GCSE examinations.

The single currency: strategic challenges for the European banking industry

This paper examines the strategic challenges for the European banking industry, arising from the process of European Monetary Union (EMU). The adoption of the euro will have profound impacts on the structure, conduct and performance of all players in the market. Strategic responses will have to focus on how to secure new profit streams in the context of both national and pan-European banking. This paper represents a timely contribution to the strategic development of banking in this final, most critical, stage of the EMU project.