Information and communication technology in the Brazilian banking industry: does functionality matter?

Detalhes bibliográficos
Autor(a) principal: Rezende, Luiz Paulo Fontes de
Data de Publicação: 2021
Outros Autores: Silva, Fernanda Faria, Crocco, Marco
Tipo de documento: Artigo
Idioma: por
eng
Título da fonte: Cadernos EBAPE.BR
Texto Completo: https://periodicos.fgv.br/cadernosebape/article/view/84528
Resumo: A banking system is functional when it expands the potential to provide more liquidity to the economy, especially for development finance. The advances of Information and Communication Technology (ICT) can contribute to increasing banks’ potential to offer more products and services, expanding their capacity to be more functional. Diversifying financial instruments can encourage them to operate with more profitable operations in the short term to the detriment of the supply of credit in the long term, decreasing their ability to be more functional. This article aims to analyze the relationship between ICT and the functionality of Brazilian banks between 1995 and 2016. We created an index of functionality. The Panel Data estimation verified an ambiguous impact of ICT on banks’ functionality. The use of electronic devices and services for software-driven data processing and transmission has had a positive effect on this index. However, the influence of ICT on functionality was to enhance the negative effects of financial innovations on the supply of credit by banks because of the agents” incentives to invest in short-term and more liquid assets, vis à vis of financing long-term investments, harming the capacity for financing Brazilian development.
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spelling Information and communication technology in the Brazilian banking industry: does functionality matter?Tecnología de la comunicación y de la información en la industria bancaria brasileña: ¿la funcionalidad importa?Tecnologia de comunicação e informação no setor bancário brasileiro: a funcionalidade importa?Information and communication technologyFunctionalityBanksBrazilTecnología de la información y la comunicaciónFuncionalidadBancosBrasilTecnologia da informação e ComunicaçãoFuncionalidadeBancosBrasilA banking system is functional when it expands the potential to provide more liquidity to the economy, especially for development finance. The advances of Information and Communication Technology (ICT) can contribute to increasing banks’ potential to offer more products and services, expanding their capacity to be more functional. Diversifying financial instruments can encourage them to operate with more profitable operations in the short term to the detriment of the supply of credit in the long term, decreasing their ability to be more functional. This article aims to analyze the relationship between ICT and the functionality of Brazilian banks between 1995 and 2016. We created an index of functionality. The Panel Data estimation verified an ambiguous impact of ICT on banks’ functionality. The use of electronic devices and services for software-driven data processing and transmission has had a positive effect on this index. However, the influence of ICT on functionality was to enhance the negative effects of financial innovations on the supply of credit by banks because of the agents” incentives to invest in short-term and more liquid assets, vis à vis of financing long-term investments, harming the capacity for financing Brazilian development.Un sistema bancario es funcional cuando expande su potencial para proporcionar más liquidez a la economía, especialmente para financiar el desarrollo. Los avances en las tecnologías de la información y la comunicación (TIC) pueden contribuir a incrementar el potencial de los bancos para ofrecer más productos y servicios, ampliando su capacidad de ser más funcionales. Sin embargo, la diversificación de los instrumentos financieros también puede inducirlos a priorizar operaciones más rentables y a corto plazo, en detrimento de la oferta de crédito a largo plazo, disminuyendo su capacidad de ser más funcional. Considerando estos aspectos, el propósito de este artículo es analizar la relación entre las TIC y la funcionalidad de los bancos brasileños entre 1995 y 2016. Para ello, se creó un índice de funcionalidad. A partir de la estimación de datos de panel, se verificó un impacto ambiguo de las TIC en la funcionalidad bancaria. El uso de dispositivos y servicios electrónicos para procesar y transmitir datos basados en software tuvo un efecto positivo en este índice. Sin embargo, la influencia de las TIC en la funcionalidad fue potencializar los efectos negativos de las innovaciones financieras en la oferta de crédito por parte de los bancos, debido a incentivos, por parte de los agentes, para invertir en activos a corto plazo y más líquidos, frente al financiamiento de inversiones a largo plazo, comprometiendo la capacidad de financiamiento del desarrollo brasileño.Um sistema bancário é funcional quando expande o potencial de fornecer mais liquidez à economia, especialmente para o financiamento do desenvolvimento. Os avanços da Tecnologia da Informação e Comunicação (TIC) podem contribuir para aumentar o potencial dos bancos em oferecer mais produtos e serviços, ampliando sua capacidade de serem mais funcionais. Caso contrário, a diversificação dos instrumentos financeiros pode incentivá-los a operar com operações mais rentáveis no curto prazo em detrimento da oferta de crédito no longo prazo, diminuindo sua capacidade de ser mais funcional. Considerando esses aspectos, o objetivo deste artigo é analisar a relação entre a TIC e a funcionalidade dos bancos brasileiros entre 1995 e 2016. Para tanto, foi criado um índice de funcionalidade. A partir da estimativa de dados em painel, verificou-se um impacto ambíguo das TIC na funcionalidade bancária. A utilização de dispositivos e serviços eletrônicos para processamento e transmissão de dados baseados em software teve um efeito positivo neste índice. No entanto, a influência das TIC na funcionalidade foi potenciar os efeitos negativos das inovações financeiras na oferta de crédito pelos bancos, devido aos incentivos dos agentes para investir em ativos de curto prazo e mais líquidos, vis à vis ao financiamento de investimentos de longo prazo, prejudicando a capacidade de financiamento do desenvolvimento brasileiro.Escola Brasileira de Administração Pública e de Empresas da Fundação Getulio Vargas2021-12-20info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttps://periodicos.fgv.br/cadernosebape/article/view/8452810.1590/1679-395120200162Cadernos EBAPE.BR; Vol. 19 No. 4 (2021); 962-978Cadernos EBAPE.BR; Vol. 19 Núm. 4 (2021); 962-978Cadernos EBAPE.BR; v. 19 n. 4 (2021); 962-9781679-3951reponame:Cadernos EBAPE.BRinstname:Fundação Getulio Vargas (FGV)instacron:FGVporenghttps://periodicos.fgv.br/cadernosebape/article/view/84528/80071https://periodicos.fgv.br/cadernosebape/article/view/84528/80072Rezende, Luiz Paulo Fontes deSilva, Fernanda FariaCrocco, Marcoinfo:eu-repo/semantics/openAccess2021-12-21T00:18:51Zoai:ojs.periodicos.fgv.br:article/84528Revistahttps://periodicos.fgv.br/cadernosebapehttps://periodicos.fgv.br/cadernosebape/oaicadernosebape@fgv.br||cadernosebape@fgv.br1679-39511679-3951opendoar:2024-05-13T10:00:24.414208Cadernos EBAPE.BR - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Information and communication technology in the Brazilian banking industry: does functionality matter?
Tecnología de la comunicación y de la información en la industria bancaria brasileña: ¿la funcionalidad importa?
Tecnologia de comunicação e informação no setor bancário brasileiro: a funcionalidade importa?
title Information and communication technology in the Brazilian banking industry: does functionality matter?
spellingShingle Information and communication technology in the Brazilian banking industry: does functionality matter?
Rezende, Luiz Paulo Fontes de
Information and communication technology
Functionality
Banks
Brazil
Tecnología de la información y la comunicación
Funcionalidad
Bancos
Brasil
Tecnologia da informação e Comunicação
Funcionalidade
Bancos
Brasil
title_short Information and communication technology in the Brazilian banking industry: does functionality matter?
title_full Information and communication technology in the Brazilian banking industry: does functionality matter?
title_fullStr Information and communication technology in the Brazilian banking industry: does functionality matter?
title_full_unstemmed Information and communication technology in the Brazilian banking industry: does functionality matter?
title_sort Information and communication technology in the Brazilian banking industry: does functionality matter?
author Rezende, Luiz Paulo Fontes de
author_facet Rezende, Luiz Paulo Fontes de
Silva, Fernanda Faria
Crocco, Marco
author_role author
author2 Silva, Fernanda Faria
Crocco, Marco
author2_role author
author
dc.contributor.author.fl_str_mv Rezende, Luiz Paulo Fontes de
Silva, Fernanda Faria
Crocco, Marco
dc.subject.por.fl_str_mv Information and communication technology
Functionality
Banks
Brazil
Tecnología de la información y la comunicación
Funcionalidad
Bancos
Brasil
Tecnologia da informação e Comunicação
Funcionalidade
Bancos
Brasil
topic Information and communication technology
Functionality
Banks
Brazil
Tecnología de la información y la comunicación
Funcionalidad
Bancos
Brasil
Tecnologia da informação e Comunicação
Funcionalidade
Bancos
Brasil
description A banking system is functional when it expands the potential to provide more liquidity to the economy, especially for development finance. The advances of Information and Communication Technology (ICT) can contribute to increasing banks’ potential to offer more products and services, expanding their capacity to be more functional. Diversifying financial instruments can encourage them to operate with more profitable operations in the short term to the detriment of the supply of credit in the long term, decreasing their ability to be more functional. This article aims to analyze the relationship between ICT and the functionality of Brazilian banks between 1995 and 2016. We created an index of functionality. The Panel Data estimation verified an ambiguous impact of ICT on banks’ functionality. The use of electronic devices and services for software-driven data processing and transmission has had a positive effect on this index. However, the influence of ICT on functionality was to enhance the negative effects of financial innovations on the supply of credit by banks because of the agents” incentives to invest in short-term and more liquid assets, vis à vis of financing long-term investments, harming the capacity for financing Brazilian development.
publishDate 2021
dc.date.none.fl_str_mv 2021-12-20
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/cadernosebape/article/view/84528
10.1590/1679-395120200162
url https://periodicos.fgv.br/cadernosebape/article/view/84528
identifier_str_mv 10.1590/1679-395120200162
dc.language.iso.fl_str_mv por
eng
language por
eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/cadernosebape/article/view/84528/80071
https://periodicos.fgv.br/cadernosebape/article/view/84528/80072
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Escola Brasileira de Administração Pública e de Empresas da Fundação Getulio Vargas
publisher.none.fl_str_mv Escola Brasileira de Administração Pública e de Empresas da Fundação Getulio Vargas
dc.source.none.fl_str_mv Cadernos EBAPE.BR; Vol. 19 No. 4 (2021); 962-978
Cadernos EBAPE.BR; Vol. 19 Núm. 4 (2021); 962-978
Cadernos EBAPE.BR; v. 19 n. 4 (2021); 962-978
1679-3951
reponame:Cadernos EBAPE.BR
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Cadernos EBAPE.BR
collection Cadernos EBAPE.BR
repository.name.fl_str_mv Cadernos EBAPE.BR - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv cadernosebape@fgv.br||cadernosebape@fgv.br
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