Volume 10, Number 2 Printed ISSN: 1939-2230 PDF ISSN: 1939-2249 ACADEMY OF BANKING STUDIES JOURNAL Kurt Jesswein Editor Sam Houston State University The Academy of Banking Studies Journal is owned and published by the DreamCatchers Group, LLC. Editorial content is under the control of the Allied Academies, Inc., a non-profit association of scholars, whose purpose is to support and encourage research and the sharing and exchange of ideas and insights throughout the world. Page ii Authors execute a publication permission agreement and assume all liabilities. Neither the DreamCatchers Group nor Allied Academies is responsible for the content of the individual manuscripts. Any omissions or errors are the sole responsibility of the authors. The Editorial Board is responsible for the selection of manuscripts for publication from among those submitted for consideration. The Publishers accept final manuscripts in digital form and make adjustments solely for the purposes of pagination and organization. The Academy of Banking Studies Journal is owned and published by the DreamCatchers Group, LLC, PO Box 1708, Arden, NC 28704, USA. Those interested in communicating with the Journal, should contact the Executive Director of the Allied Academies at [email protected]. Copyright 2011 by the DreamCatchers Group, LLC, Arden NC, USA Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page iii EDITORIAL REVIEW BOARD Bora Aktan Tor Brodtkorb Yasar University American University of Sharjah Turkey United Arab Emirates Susan Coleman Richard T. Henage University of Hartford Utah Valley State College Hartford, Connecticut Orem, Utah Joseph Horton Terrance Jalbert University of Central Arkansas University of Hawaii at Hilo Conway, Arkansas Hilo, Hawaii Gianluca Mattarocci James Nelson University of Rome “Tor Vergata” New Mexico State University Italy Las Cruces, New Mexico Paul Newsom Christopher Ngassam Valparaiso University Florida A&M University Valparaiso, Indiana Tallahassee, Florida Gbadebo Olusegun Odularu Shekar Shetty Forum for Agricultural Research in Africa Salisbury University Ghana Salisbury, Maryland Robert J. Tokle Marsha Weber Idaho State University Minnesota State University Moorhead Pocatello, Idaho Moorhead, Minnesota William H. Wells Georgia Southern University Statesboro, Georgia Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page iv TABLE OF CONTENTS LETTER FROM THE EDITOR ................................................................................................... VI IMPROVING SECURITY OF ONLINE BANKING USING RFID .................................................................................................................................. 1 Zakaria I. Saleh, Yarmouk University MULTI-RATING CHOICE DETERMINANTS: EVIDENCE FROM FITCH, MOODY’S AND STANDARD AND POOR’S RATINGS .......................................................... 9 Gianluca Mattarocci, University of Rome “Tor Vergata” THE MORTGAGE CRISIS ITS IMPACT AND BANKING RESTRUCTURE ...................................................................... 23 Gaurav Singh, Strayer University Kelly Bruning, Strayer University AN ANALYSIS OF ENERGY CONSERVATION AMONG U.S. AGE COHORTS ............... 45 LaTanya N. Brown, Bowie State University D. Osei Robertson, Bowie State University PRE-CRISIS DETERMINANTS OF US BANK CHARTER VALUES ................................................................................................. 55 Rich Fortin, New Mexico State University Gerson M. Goldberg, University of Connecticut Greg Roth, New Mexico State University COMMUNITY BANKS: SURVIVING UNPRECEDENTED FINANCIAL REFORM ..................................................... 67 Kathleen Croasdale, First Bank of Conroe Robert Stretcher, Sam Houston State University Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page v BANK PERFORMANCE PREDICTION DURING THE ‘GREAT RECESSION’ OF 2008-‘09: A PATTERN-RECOGNITION APPROACH ...................................................... 87 James Moore, Indiana University Purdue University Fort Wayne WORKPLACE EMPOWERMENT AND ORGANIZATIONAL EFFECTIVENESS: AN EMPIRICAL INVESTIGATION OF INDIAN BANKING SECTOR. .............................. 105 Manoj Sharma, Punjab University Gurvinder Kaur, Thapar University Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page vi LETTER FROM THE EDITOR The Academy of Banking Studies Journal is owned and published by the DreamCatchers Group, LLC. The Editorial Board and the Editors are appointed by the Allied Academies, Inc., a non profit association of scholars whose purpose is to encourage and support the advancement and exchange of knowledge, understanding and teaching throughout the world. The ABSJ is a principal vehicle for achieving the objectives of the organization. The mission of the ABSJ is to publish theoretical and empirical manuscripts which further the disciplines of banking and institutional finance. All articles contained in this volume have been double blind refereed, and the acceptance rate was 25%, in keeping with the editorial policy of the Journal. It is our mission to foster a supportive, mentoring effort on the part of the referees which will result in encouraging and supporting writers. We welcome different viewpoints because in those differences we improve knowledge and understanding. Information about the Allied Academies, the ABSJ, and the other journals published by affiliates of the Academy, as well as calls for conferences, are published on our web site, www.alliedacademies.org, which is updated regularly. Please visit our site and know that we welcome hearing from you at any time. Kurt Jesswein Sam Houston State University Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page 1 IMPROVING SECURITY OF ONLINE BANKING USING RFID Zakaria I. Saleh, Yarmouk University ABSTRACT Banks protect customers’ security in three main techniques: passwords, encryption, and firewalls/server security. This study develops a module that shall further tighten security of online banking, and improve trust. This study proposed that there is a need for an additional authentication due to the fact that trust has new dimensions in financial services. A model using RFID as a second authentication layer is proposed and developed. Internet security is assumed to be a major obstacle to the adoption of online banking, which made customers concerned about the safety of their online accounts and risk of fraudulent transactions. RFID can provide such improvement. This is a solution for issues relates to gaining access by impersonating the genuine user, where a hacker could intercept a user name and password as they cross the Internet and uses them to access the banks network. Missing the physical ID (RFID) will prevent such intrusion. INTRODUCTION Banks protect customers’ security in three main techniques: passwords, encryption, and firewalls/server security. Passwords and user names are an essential element of online security. Passwords ensure that only those authorized have access to an account. However, a hacker could intercept a user name and password during transmission and uses them to access the account. This study proposed that there is a need for an additional authentication due to the fact that trust has new dimensions in financial services. Several studies have identified trust as an important factor influencing customer participation in web-based commerce (Cheung & Lee, 2000; Koufaris et al, 2005; Stewart et al, 2001; Saleh, 2003). Saleh assumed Internet security to be a major obstacle to the adoption of online banking, which made customers concerned about the safety of their online accounts and risk of fraudulent transactions. Based on the findings of Saleh dissertation, improved security can improve Trust in Online Banking (Saleh, 2003). THREAT AND VULNERABILITY OF ONLINE SERVICES The threat can come from anyone with the motivation to attempt to gain unauthorized access to the network, or from anyone with authorized access to the network. Therefore, it is possible that the threat can be anyone. The vulnerability to the threat depends on several factors, Academy of Banking Studies Journal, Volume 10, Number 2, 2011 Page 2 such as motivation and trust. Motivation can be assessed by analyzing how useful access to or destruction of the network might be to someone. Trust can be determined by knowing how well an organization can trust the authorized users and/or how well trained the users are in their understanding of what is acceptable use of the network and what is not acceptable use. Most threats that users face are not new, but the Internet makes them potentially more dangerous. Vulnerability essentially comes from failures of the security system to protect the network from an unauthorized person gaining access to the banking network system. In addition, it can come from failures to protect the network system from someone within the network (e.g., an unauthorized employee) intentionally or accidentally gaining access to or damaging the network. “Hackers count on the fact that many organizations won't have addressed certain vulnerabilities on their systems; unfortunately, they're often correct” (Betts, 2000). Banks protect customers’ security by means of passwords, encryption, and firewalls (a combination of computer hardware and software that restrict the flow of information between computers). However, this study finds that there have been security breaches that bring serious question whether the banking system is fully capable