Literature Review Women on boards and in TMTS and firm performance118 Committee lacking high quality equity and poor liquidity risk management on the part of banks substantially contributed towards the development of the crisis Key reforms of the Committee were stricter requirements with regard to banks com mon equity and liquidity The Common equity Tier 1 ratio was increased from a 2 percent minimum that had been required by Basel II to a 4 5 percent minimum Adding a Capital Conservation Buffer of 2 5 percent which may fall below in times of crisis results in a required common equity ratio of 7 percent New regulation striving to improve liquidity comprised Principles for Sound Liquidity Risk Management and Supervision and in additi on two minimum standards for funding liquidity The Liquidity Coverage Ratio LCR is short term oriented securing high quality liquid assets to survive an acute stress scenario of one month whereas the net stable funding ratio NSFR has a time horizon for one year and shall provide for a sustainable maturity structure of assets and liabilities BSBS Dec 2010 5 2 3 Costs and cost savings potential in the financial services sector Since banks were required to accumulate capital reserves they have remained under strong cost pressure also in the years following the crisis Cut ting operating costs to a great extent personnel ex penses continues to be a straightforward solution The cost income ratio compares overhead costs with gross revenues and is a central indicator of bank efficiency Higher ratios indicate low levels of cost efficiency Cost income ratios of banks based in high income countries are typically lower than in poorer countries Beck et al 2009 The cost income ratio of banks remained relatively stable during the period 1995 to 2007 Overhead costs of banks how ever have been in decline across all income groups In fact labor costs in financial services differ consi derably from those in other industry sectors Labor costs across the whole economy excluding pub lic administration in the European Union EU 28 amounted to 24 12 euros per hour worked Euro stat 2015 Labor costs in the financial and in surance sector exceeded the average across all industries by 70 percent Costs were only two percent higher in the manufacturing industry By contrast they were nine percent below the average in the construction industry and even 41 percent lower in the accommodation and food service sector The equivalent average figure for the Eurozone which comprised 18 member states of the European Union in 2012 EU 18 19 stood at 28 98 euros with similar industry specific variations Eurostat 2015 Average hourly employer costs per employee compensation in the United States for all civilian workers20 were 30 83 US dollars in 2012 201521 33 35 US dollars In the priva te industry employee compensation costs stood at 28 85 US dollars in 2012 US Bureau of Labor Statistics 2016a and 31 52 US dollars in 2015 In dustry specific differences are of approximately the same magnitude Average hourly total compensa tion costs in 2015 in the financial and insurance sector were 48 16 US dollars22 US Bureau of Labor Statistics 2016b Labor costs amounted to 37 24 US dollars in the manufacturing industry US Bu reau of Labor Statistics 2016c 36 87 US dollars in the construction industry US Bureau of Labor Sta tistics 2016d and 13 47 in the leisure and hospi tality sector US Bureau of Labor Statistics 2016e One could argue that qualification levels fields of activity and work content in banking and financi al services differ significantly from other sectors In contrast to non service firms there are neit her work banks nor assembly lines or packaging stations Also in comparison with other service 19 19 Lithuania was the nineteenth country that adopted the euro effective from January 1 2015 The Eurozone now comprises 19 member states 20 Includes workers in the private nonfarm economy excluding households and the public sector excluding the Federal government 21 21 Q1 Q3 2015 22 Figures refer to Q3 2015 Layoffs and shareholder wealth

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 118
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