Bank Corruption Literature Review Essay

Bank Corruption Literature Review Essay Bank Corruption Literature Review Essay Example Bank Corruption Literature Review Essay Example Arshad, S., Rizvi, S. (2013). Impact of corruption on bank profitability: An analysis of Islamic banks. International Journal of Business Governance and Ethics, 8(3), 195. The authors of the article discuss the fact of bank corruption on the examples of Islamic countries. The main claim of the article consists in the idea that corruption is one of the most negative social processes that bears negative influence on the economy of the country. Arshad and Rizvi (2013) have a conviction that despite the negative results of the corruption, banks have a tendency to prosper during this process. In addition, the assumption is based on the research conducted on the comparison of the amount of corruption and the banks’ income. The study showed that the more level of corruption in a country is, the more prosperity the banks experience. This assumption can be characterized as a credible one due to the obtained results. Additionally, this idea can be used in the economic planning: the action of corruption has to be moved in the correct direction, which, on the one hand, would control the levels of corruption, and on the other hand, balance its level with banks’ prosperity and have a positive effect on a country’s development. As a consequence, this strategy can be applied to the economic policy regarding various types of regulations aimed at controlling the balance and interaction between corruption and bank system. Bodenhorn, H. (2015). Bank chartering and political corruption in antebellum. National Bureau of Economic Research, Corruption and Reform: Lessons from Americas Economic History, 231-257. Speaking about the types of policy that are called to collaborate with banks and private business, the author of the article regards the notion of corruption in the framework of the contemporary particularities of the economy. Along with this, the authors distinguish the advantages and drawbacks of the democracy as a political power in connection with the banking in the world. Having conducted the research, Bodenhorn (2015) claims that banks have a tendency to â€Å"provide some appreciation for the potential scale for corruption and bribery† (Bodenhorn, 2015, p. 240). In other words, similarly to Arshad and Rizvi, the author sees a great benefit of bank corruption. On the one hand, in the light of bank corruption, there is only one side that suffers a country. On the other hand, the prosperity of the banks is a manifestation of the country’s flourish, in any case. It means that the benefits that can be extracted from bank corruption have to move in the same direction with the stated policy of a country. Applying this point of view to the official policy would contribute to the rising of the taxes and fees payment amount, which is generally acknowledged to be vitally important for a country. Casillas, G., Paredes, D., Cervantes, A., Torres, S. (2015). New measures to fight corruption and conflict of interest. The authors of the article are convinced that corruption should not be regarded as something completely unexpected. They think that corruption is as usual as, for instance, elections or a law-making process. It is necessary to regard this phenomenon from another point of view. The main claim of the article consists in the assumption that it is important to establish a so-called sense of transparency. The more governmental control over economy and bank system is produced, the more exactness and transparency will it provide. This proposal is worth of the further regard since the democracy, as well as the social order established long time ago, needs updating. This presupposes the change of the things and the way of thinking, which had been unsuitable for or not understood by the people. This sort of things comprises of the corruption and its manifestations within society. Certainly, it takes time to create a new system of the policies, which would incorporate the basis and traditions of the former styles of governing. It is necessary, however, to understand the course of time and its particularities, which require to be up-to-date, and to create a system that would provide the successful functioning of a country. Hence, implementing corruption in the bank system of a country will permit to enrich the state budget due to the money incoming. Campos, J., Pradhan, S. (2007). The many faces of corruption. Washington, D.C.: World Bank. The book in question discusses the history of the phenomenon known as corruption. The authors provide a reader with a number of stories that illustrate how corruption was widespread throughout the humankind’s history. Campos and Pradhan (2007) suppose that corruption has always been an integral and inseparable part of the society and politics. As a consequence, the authors have a conviction that bank corruption as a spread particularity of the contemporary society has a right to exist. The essential strategy provided in the book is centered on the assumption that bank corruption should be a legislative phenomenon, which will contributes to the country’s prosperity. Analyzing such an approach, it is possible to draw the conclusion that bank corruption is becoming a positive tendency. Oppositely, the authors believe, corruption has never been a positive phenomenon. The point is that it is an important and complex task for the government to turn it into a useful one and make it bring fruitful results that are expected. In other words, the many challenges that numerous countries of the world are currently facing can be met by making corruption a positive event. Obviously, it is necessary to elaborate a well-laid plan that would be followed during many years. Implementing such a vision of corruption will totally change the world and make it live and function in another way. Johannesson, I., Steendam, M. (2014). Can mobile banking reduce the presence of corruption? A minor field study in Kenya. The article written by Johannesson and Steendam (2014) represents a brand new approach to the notion of corruption. The authors of the article do not state that corruption should be legalized or make an emphasis that it is a positive phenomenon. The solution for the bank corruption proposed in the article is characterized as the most innovative, and it is expected to produce fruitful results. In their article, the authors discuss a multimedia platform known as M-Pesa called to stabilize the country’s financial and economic affairs by controlling and observing the vast sums of money circulating in the banks. This will permit to find and prove the fact of corruption and its amount. In reality, this program can be implied in the majority of the biggest world banks, as well as the banks of the poor countries. The last ones are the most suitable for this program since the phenomenon of corruption is extremely spread within their economies. Implementation of the program is called to serve as a powerful tool in overcoming the negative outcomes of corruption. Kolstad, I., Fritz, V., O’Neil, T. (2008). Corruption, anti-corruption efforts and aid: Do donors have the right approach. The article in question represents a result of the project conducted in order to establish the linkage between effective governance principles and the poverty rates decrease. The authors have a conviction that corruption is a mechanism that lies between these two aspects. It has neither positive nor negative impact. This phenomenon, in the authors’ opinion, is called to divide the countries into such categories as poor, developing or rich. Bank corruption as an essential part of the overall corruption serves, in addition to this, as a tool that shows whether a country is able to transcend from one class to another and indicates what amount of attempts should be taken. This approach is based on the research conducted and the results obtained. According to its results, the constantly growing interest in corruption is determined by the necessity of it reduction or making it play a role of contributing factor in a country’s economy. The ideas presented in the article can be interpreted in a dual way; however, it is necessary to understand that such a vision of corruption in the bank area is worth of implementing in order to help overcome poverty in the countries that experience it. Krudop, J. (2010). Surviving financial corruption: The attack of a rogue bank. Tate Publishing. The book under analysis represents a financial and economic issue of bank corruption experienced in the USA. The book is built as a memoir with scientific explanations and proofs of the phenomenon of bank corruption. The author states that the essential idea here is not to struggle against it, but change the way of thinking in such a way that would make bank corruption work for the benefit of the country. Such an approach is one of the most progressive, and it summarizes the ideas of the mentioned above articles and books, which state that the best way to stop any socially acknowledged negative phenomena is to legalize them. Having the bank corruption legalized will, first and foremost, stop the fact of struggling; secondly, it will direct the flows of money into the necessary areas. As a consequence, the states and countries will have an extra income for their local and central budgets. This fact is called to contribute to the growth of economy and industry, improving people’s quality of life. The process of changing the understanding of corruption within banks will implement the newer vision of bank system. Capitalism, as the author has a conviction, has two ways to exist nowadays: on the one hand, it can stay the same and stop its existing by self-destruction; on the other hand, it can be reborn by the numerous and absolute changes, which would take place not only in the external part of the human life and activity, but inside the human mind. Manacorda, S., Forti, G., Centonze, F. (2014). Preventing corporate corruption. Cham: Springer International Publishing. The book regards the bank corruption at the international level and explains the reasons of its beginning, evolution and thriving. Along with this, the authors make an emphasis on the examples of international bank corruption and show the consequences they have on a single country and international relations. The authors have distinguished a so-called Anti-Bribery Corruption Model, whose main idea and principle of work consists in preventing corruption inside the private companies, firms, organizations and corporations. This, as the authors believe, will contribute to the improvement of economic situation and will establish stability. Analyzing this tool, one can think that is really likely to work and perform great results. (This had been proved due to its usage by several US companies, the majority of which was represented by banks). Implementing this program into all the banks functioning in the USA, for instance, will save an incredibly large amount of money. In other words, the states and central government will have financial benefits manifold larger than they currently have. It means that the proper application of the method is able to improve a great number of social life areas and the quality of citizens’ lives. Olken, B., Pande, R. (2011). Corruption in developing countries. Abdul Latif Jameel Poverty Action Lab’S Governance Initiative, August. The article represents an innovative look at bank corruption and explains the ways it will function in the future. The advantage of the article is that it provides a reader with a number of definitions of corruption in order to investigate the ways it influences economy and the methods that are likely to be applied to overcome it. The key point of the article consists in the idea that â€Å"bureaucratic corruption takes place at the implementation end of public policies† (Olken Pande, 2011, p. 4). In other words, the authors have a conviction that corruption brings decline in whatever field of human activity and it has to be stopped. The ways to do this can be numerous. One of the most effective one, in accordance with the authors, consists in the improvement of the law system. Furthermore, the authors suggest widely using the most recent technological devices called to contribute to prevention of corruption. This idea can be characterized as useful; however, it does not provide an innovative way of look at the problem, i.e. it is mainly based on the traditional way of struggle against corruption, which is not acknowledged as an effective or fruitful one. It means that this is not enough to change or fix the law system – it is more important to change human outlook and perception of the outcomes that corruption results in.