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    Security in information systems :the identification of risks in selected electronic banking applications : a thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies in Information Systems at Massey University
    (Massey University, 1988) Kemp, Elizabeth Angela
    This thesis considers the security threats associated with the introduction of electronic banking. In electronic banking services the paper based instructions for the movement of money are replaced by the electronic transmission of data. Since electronic banking relies heavily on advanced information technology (the use of computers and communications), security is a matter of grave concern. This thesis identifies the principle risks to security in five electronic applications : Automated Teller Machines (ATMs), Electronic Funds Transfer, Point-of-Sale (EFTPOS), credit cards, home banking and wire transfers. Both the information technology used and the applications are described. The major threats to each element of the computer system, hardware, software, data, communications and the environment are identified and related to the appropriate service. Five major risk categories are described: disaster, accident, error, computer abuse and sabotage. These headings are used as the starting point for the analysis of risks to each component of the system.
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    The impact of international financial reporting standards (IFRS) on bank loan loss provisioning behaviour and bank earnings volatility : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Banking Studies at Massey University, Manawatu Campus, New Zealand
    (Massey University, 2012) Abdul Adzis, Azira
    This thesis explores the impact of the adoption of IAS 39 under the new accounting standards, the International Financial Reporting Standards (IFRS), on bank income smoothing activities, bank pro-cyclical behaviour through loan loss provisions, and bank earnings volatility. It does this by looking at a sample of commercial banks from six countries in the Asia Pacific region over the period 1995 to 2009. By looking at the impact of IFRS (via IAS 39) on adopters and non-adopters, this thesis contributes to the literature by investigating the impact of IFRS adoption on IFRS adopting banks in this region. The findings demonstrate that IFRS adoption leads to a reduction in income smoothing activities through loan loss provisions for IFRS adopters. With respect to the argument that IFRS adoption would cause more pro-cyclical behaviour of loan loss provisions, the findings from this thesis could not find enough evidence to support the suggestion that IAS 39 amplifies pro-cyclicality of bank loan loss provisioning among the adopters. For the suggestion that IFRS might cause more volatility of earnings for the adopters, there is evidence of more volatile earnings after IFRS adoption, but extra caution is needed in interpreting the findings as they may have been driven by the global recession in 2008. Finally, for the conjecture that IFRS adoption leads to higher earnings volatility for IFRS adopters than that of non-adopters, there is insufficient evidence to support this suggestion.
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    An examination of New Zealand bank efficiency : a dissertation presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Banking Studies at Massey University, Palmerston North, New Zealand
    (Massey University, 2005) Tripe, David William Lethbridge
    This research explores the efficiency of the New Zealand banking system over the period 1996 to 2003 using Data Envelopment Analysis (DEA). DEA is used as a lack of data on prices and the relatively small cross-sections (because of the limited number of banks in the New Zealand market) pose difficulties for the use of parametric methods. This is the first major research to make use of the data-set provided under the New Zealand banking disclosure regime, and the first major attempt at contrasting the relative efficiency of banks in Australia and New Zealand. The research discusses the problems of analysis of efficiency in small banking markets and proposes a solution through use of panel data. Analysis on this basis highlights problems that arise from changing environmental conditions (specifically from changes in the general level of interest rates), but also produces a reasonably consistent ranking of the efficiency of New Zealand banks. The research finds that equity is an important input to the study of bank efficiency, and that it is a cause of differences in relative efficiency between New Zealand and Australian banks.
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    The efficiency of the commercial banks in six Pacific Island countries : a dissertation in partial fulfilment of the requirements for the degree of Doctor in Philosophy, Banking Studies, School of Economics and Finance, Massey University, Palmerston North, New Zealand
    (Massey University, 2010) Maea, Samisoni Fotu
    This thesis explores the efficiency of the commercial banks in six Pacific Island Countries (PICs): Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu over the period 2000 to 2006 using Data Envelopment Analysis (DEA). The use of DEA is justified primarily due to the small number of commercial banks operating in these small countries. This is the first detailed study of the relative efficiency and performance of banking firms in this selected group of small countries. The dominant feature of this research is to investigate the primary prudential tools commonly used by banking supervisors in regulating the local banking system. In our understanding, this is the first effort to investigate the link between individual prudential tools and bank efficiency. The small number of banks in this dataset further enables a structural investigation of the relative efficiency across commercial banks nationally and across countries, employs a series of explanatory variables to explain the possible sources of efficiency variation, and provides a series of practical measures to validate resulting efficiency scores from DEA. This comprehensive structural construct is also a new development in bank efficiency studies. The key research finding is the identification of liquidity requirements as the main source of bank inefficiency. Capital requirements are not only ineffective in promoting bank efficiency but in the absence of formal liquidity requirements, they become a contributing factor for causing asset deterioration. Hence, asset quality is inversely related to bank efficiency. Scale inefficiency is unusually large compared with reported scale inefficiency in the literature and in most countries, it dominates technical inefficiency. Finally, efficiency-based ratios should continue to supplement resulting efficiency scores, at least in the current measurement and development of bank efficiency in the context of smaller developing economies.
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    Reshaping the reserve : the political economy of central banking in Australasia : a thesis presented in fulfilment of the requirements for the degree of Doctor of Philosophy in Public Policy at Massey University, Turitea, Palmerston North, New Zealand
    (Massey University, 1999) Eichbaum, Christopher John; Eichbaum, Christopher John
    Changes in the relative influence of state and market in the final quarter of the twentieth century are no better evidenced than in the institutional evolution of the central bank. Central banks are increasingly possessed of a large measure of independence from political authorities, set the limits on economic growth and on employment, and to a very large extent the parameters within which governments exercise taxation and expenditure decisions. In 1989 the New Zealand Parliament passed the Reserve Bank of New Zealand Act. The Act mandated the Bank to focus exclusively on one objective - price stability - and provided the Bank with complete operational independence to pursue that objective. The New Zealand legislation is perhaps the cleanest expression of an institutional prescription supported by the rational economics literature. Central bank independence - by which is meant operational independence to deliver price stability - is seen as the remedy for a democratic distemper in which politicians will manipulate policy levers in an opportunistic manner, and with adverse economic consequences. The statute repealed by the 1989 New Zealand legislation offended against the rational economics prescription - the Bank was required to direct policy towards multiple objectives and was dependent on the government of the day for much of its operational direction. That earlier statute had much in common with Australia's Reserve Bank Act 1959 which required the Reserve Bank of Australia to protect the stability of the currency, maintain full employment, and contribute to economic prosperity and welfare, and vested policymaking in a Board combining officials and lay members variously drawn from business, labour, and the academic community. That statute, largely unchanged since 1945, remains in force today. The early 1990s would see a political contest for the Australian central bank, a contest which would see the appropriateness of the Coombsian post War institutional scheme questioned, and the 'New Zealand model' cited as the exemplar of institutional best practice. In 1999 that contest is over, the legislation has not been revisited, the Coombsian scheme remains intact, and it enjoys bi-partisan political support. The institution has been reshaped, but within the context of the Coombsian scheme. The thesis takes as its point of departure the fact of institutional difference, and illuminates the causes and consequences of two markedly different trajectories of institutional reshaping. A most similar systems research strategy provides the methodological framework, with the theoretical base provided by a political economy model which posits that particular institutional configurations and trajectories of institutional reshaping will reflect the relative influence of actors within the political economy. The model seeks to remedy what is a principal deficiency in the rational economics literature, namely the treatment of central bank independence as exogenous. By situating institutional reshaping within the political economy, the nature of choices relating to institutional form and trajectories of institutional reshaping are made endogenous. Elements from both rational-choice and historical institutionalism are imported into the model, which posits that a condition of institutional equilibrium condition will obtain where attributes of the institutional mix serve to maximise endowments of credibility and legitimacy. Credibility of institution and of policy is a requirement in order to remedy any dynamic inconsistency constraint, and typically is advanced by operational independence and a focus on price stability. Institutional and policy legitimacy posits both that independence be balanced with appropriate accountability provisions, and that economic growth, macroeconomic stability and an appropriate measure of policy co-ordination form part of the central bank mandate. Institutional credibility and legitimacy are manifest both in particular attributes of institutional form - policy objectives and governance arrangements in particular - and in the conduct of relations between central banks and actors within the political economy. For the first time, the thesis articulates a comparative political economy of central banking in Australasia, and illuminates the causes and consequences of differing trajectories of institutional reshaping within an integrated model. The thesis advances an explanation for the markedly different trajectories of institutional reshaping, and foreshadows the likely trajectory of future reform under circumstances of institutional dis-equilibrium. The thesis extends and modifies the institutionalist literature on the political economy of central banking, and is an original contribution in keeping with what Sharpf has identified as the positive and normative import of policy research - producing effective and legitimate solutions to policy problems.
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    New Zealand's experiment with prudential regulation : can disclosure discipline moderate excessive risk taking in New Zealand deposit taking institutions? : a thesis presented in partial fulfillment of the requirements for the degree Doctor of Philosophy at Massey University, Albany
    (Massey University, 2009) Wilson, William Robert
    The New Zealand economy in the period up to 2006 provides an opportunity to assess an alternative disclosure based approach to the prudential regulation of deposittakers, in a market free of many of the distortions which arise from traditional regulatory schemes. The overall objective of this research has been to assess the effectiveness of the prudential regulation of New Zealand financial institutions and judge if the country is well served by it. Analysis of New Zealand’s registered bank sector suggests public disclosure adds value to New Zealand’s financial system. However, the significant relationship found between disclosure risk indicators and bank risk premiums was not as a result of market discipline, rather it is argued self-discipline was the mechanism, demonstrating bank management and directors are discharging their duties in a prudent manner. A feature of the New Zealand disclosure regime for banks is the significant responsibilities placed on bank directors; directors are then held accountable for their actions. Findings in the management of banks were in contrast to non-bank deposittakers, where disclosure was judged to be ineffective, and of no practical use due to its poor quality. The management of non-bank deposit-takers appeared to receive very little oversight from depositors, their trustees or official agencies. As a result, many appear to have managed their institution in their own interests, with little consideration given to other stakeholders. Failures which occurred in NBDTs from 2006 resulted from deficiencies in the prudential regulation of these deposit-takers, demonstrating the severity of asymmetric information and moral hazard problems which can arise if prudential regulation is not correctly designed and management interests are not aligned with other stakeholders. The New Zealand disclosure regime will never guarantee a bank will not fail, nor should it try to do so, but it should assist the functioning of a sound and efficient financial system. To this end, it is recommended that the Reserve Bank, in re-designing the regulatory framework for NBDTs, hold the management and directors of NBDTs similarly accountable, while also incorporating regular disclosure and minimum prudential standards. Governments have an important role to play in ensuring the financial system is efficient.