In supermarkets, food manufacturers fight – even pay – to get the best locations for their products: at eye level, or at the ends of aisles, where they better attract the attention of questing shoppers and therefore are more likely to be bought. In software, designers have long known that most users do not change default settings. This is most easily seen in disputes about whether default privacy settings should opt users in or out. In 2008, the popular book Nudge, written by Richard R. Thaler and Cass R. Sunstein, focused mainstream attention on the years of this type of research, and dubbed the design of systems to nudge people toward particular behaviours that benefit both them and society in general “choice architecture” and the designers who make these apparently tiny but vastly influential decisions “choice architects”.

Security by Design

Asset securitizations and bank stability: Evidence from different banking systems

Effects of securitization and covered bonds on bank stability

This study examines the threshold effect in the nonperforming loans–profitability nexus within the Nigerian banking industry Using the innovative dynamic panel threshold of Seo, Kim, and Kim (2019), the work documents threshold levels of 35% and 50% of nonperforming loans for return on average assets (ROAA) and return on average equity (ROAE), respectively These levels of nonperforming loans ensure equilibrium profitability without stability trade‐off in the industry Similarly, the robust models suggest the threshold of 52% and 281% of impaired loans for optimal ROAA and ROAE, respectively The results are important for policy formulations It is recommended that the Central Bank of Nigeria (CBN) should review the 5% threshold nonperforming loans adopted in the industry in 2019 prudential guidelines to ensure stability in the Nigerian banking industry

Is there a nonlinear relationship between nonperforming loans and bank profitability? Evidence from dynamic panel threshold

ARTICLE INFO Damilola Oyetade, Adefemi A. Obalade and Paul-Francois Muzindutsi (2020). Impact of the Basel IV framework on securitization and performance of commercial banks in South Africa. Banks and Bank Systems, 15(3), 95-105. doi:10.21511/bbs.15(3).2020.09 DOI http://dx.doi.org/10.21511/bbs.15(3).2020.09 RELEASED ON Thursday, 27 August 2020 RECEIVED ON Friday, 12 June 2020 ACCEPTED ON Wednesday, 05 August 2020

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Rabab Abouarab

Papers

Disentangling the impact of securitization on bank profitability

Spotting Portfolio Greenwashing in Sustainable Funds