Suchergebnisse

The role of bank is nevertheless important for all firms. More to the point of providing required capital, banks also provide services which are vital for firm's operation. Based on previous researches, relationship with bank could affect firm's profitability. Hence, the decision for the numbers of bank relationship can be a considerable factor for improving firm's performance. Using samples containing firms within manufacturing sector, listed at Jakarta Stock Exchange for the period from 1999 till 2004, this paper examines whether bank relation-ship of firms in Indonesia affects firms' profitability. The result based on the regression analysis point out bank relationship has an insignificant effect on firm's profitability in Indonesia. Based on the result, also the fact of the occurrence of banking crisis in the sample period, it is suggestible for firms to have more than a single bank relationship. And last but not least the government should encourage a continuous improvement towards banking industry to avoid and anticipate future banking crisis.

The "conventional wisdom" in academic and policy circles argues that, while large and foreign banks are generally not interested in serving SMEs, small and niche banks have an advantage because they can overcome SME opaqueness through relationship lending. This paper shows that there is a gap between this view and what banks actually do. Banks perceive SMEs as a core and strategic business and seem well-positioned to expand their links with SMEs. The intensification of bank involvement with SMEs in various emerging markets is neither led by small or niche banks nor highly dependent on relationship lending. Moreover, it has not been derailed by the 2007-2009 crisis. Rather, all types of banks are catering to SMEs and large, multiple-service banks have a comparative advantage in offering a wide range of products and services on a large scale, through the use of new technologies, business models, and risk management systems.

The paper explores the relation between individual banks' liquidity management in the euro area and the ECB's management of the aggregate current accounts held by banks with the Eurosystem. It is argued that, in the case of the euro area with its large, remunerated reserve requirements that have to be fulfilled only on average over a one‐month period, the banks' demand for working balances to serve as a buffer against market imperfections is always below reserve requirements. It is therefore normally sufficient for the ECB when steering short‐term interest rates to control aggregate liquidity in a way that the aggregate banking system is in a position to fulfil adequately its reserve requirements. In particular, the ECB normally does not need to take care of any factors that affect temporarily the demand for working balances, such as the level and uncertainties of interbank payment flows. However, two exceptions are noteworthy and are discussed in the paper: the banks' balance sheet management activities implying a regular end of month peak of the EONIA rate; and the liquidity situation in the case of substantive market tensions as in the days following the terrorist attacks of 11 September 2001. The need of the ECB's liquidity management to address the associated deviations from a model of perfect markets is discussed.