Bank Financing Research Articles

NON PERFORMING FINANCIAL (NPF) MEMODERASI PEMBIAYAAN MUDHARABAH DAN MUSYARAKAH TERHADAP PROFITABILITAS

The purpose of this study is to test the hypothesis and generate evidence regarding the effect of Mudharabah, Musyarakah contract financing on profitability with Non-Performing financing (NPF) as a moderating variable at Islamic People's Financing Banks (BPRS) in 2021-2023. This study uses secondary data, namely the BPRS financial statements published in the Financial Services Authority (OJK) which determine the effect of Mudharabah, Musyarakah and Murabahah contract financing on profitability with Non-Performing financing (NPF) as a moderating variable at the Islamic People's Financing Bank (BPRS) in 2021-2023. The sampling used in this study was purposive sampling method. The number of BPRS sampled in this study was 29 banks. The analysis method used to test the hypothesis is Eviews 12. The results of this study indicate that Mudharabah Financing has a negative and insignificant effect on Profitability, but Musyarakah Financing has a positive and significant effect on Profitability.

The Perceived Impact of the Adaption of IFRS7 and IFRS9 on the Transparency and Comparability of Egyptian Banks Financial Reporting

The Perceived Impact of the Adaption of IFRS7 and IFRS9 on the Transparency and Comparability of Egyptian Banks Financial Reporting

Optimizing earning quality in bank finance: a theoretical model and empirical investigation in India

Optimizing earning quality in bank finance: a theoretical model and empirical investigation in India

Aligning Indonesia's economic goals with SDGS: Strengthening Qur'anic principles in Islamic finance

Purpose – This research examines the relationship between Islamic bank financing aligned with the Sustainable Development Goals (SDGs) and economic growth, incorporating Qur'anic principles in Islamic finance.Methodology – Quarterly time-series data from Q1 2014 to Q1 2022 were analyzed using the cointegration and ARDL approaches. Data sources include the PSIFIs for Islamic Banks (IFSB Database), Indonesia's GDP (BPS), and the Financial Services Authority (OJK).Findings – Long-term analysis reveals that Islamic financing in SDG sectors such as SDG1 (No Poverty), SDG2 (Zero Hunger), SDG3 (Good Health and Well-being), SDG4 (Quality Education), and SDG11 (Sustainable Cities and Communities) positively correlate with economic growth, while SDG8 (Decent Work and Economic Growth) shows an inverse relationship. In the short term, financing in SDG2, SDG3, SDG8, and SDG9 (Industry, Innovation, and Infrastructure) positively impacts economic growth, whereas SDG6 (Clean Water and Sanitation) exhibits a negative association. These findings highlight Islamic finance's potential to address socio-economic challenges rooted in Qur'anic values, such as Surah al-Nisā’ [4]: 29 and al-Baqarah [2]: 261.Implications – Policymakers are encouraged to promote Islamic microfinance for SMEs and invest in rural sanitation infrastructure (SDG6). Furthermore, financing renewable energy projects (SDG7) aligns with sustainable development goals.Originality – This study bridges Islamic finance and sustainable development by integrating a Qur'anic perspective into the SDG framework, offering insights into leveraging Islamic finance to achieve sustainability and economic growth, while adhering to Islamic ethical principles.

Central Bank Financial Policy Mechanism and Taxation Earning in Sub-Saharan Africa

Central Bank Financial Policy Mechanism and Taxation Earning in Sub-Saharan Africa

Unveiling the impact of COVID-19 on Small Finance Banks in India: An in-depth econometric analysis

This study assesses the performance of Small Finance Banks in India, focusing on their efficiency in the post-COVID-19 period from 2019 to 2023. It explores the influence of bank-specific and macroeconomic factors on the efficiency of Small Finance Banks, with the aim of understanding their role in promoting financial inclusion. The research employs a two-stage Data Envelopment Analysis (DEA) framework to evaluate the efficiency of 10 selected Small Finance Banks. It incorporates both bank-specific variables (such as capital adequacy ratio, credit-deposit ratio, and liquidity ratio) and macroeconomic factors (GDP and inflation) in a Tobit regression model to analyze their influence on efficiency. The study reveals that the majority of Small Finance Banks remained resilient during the pandemic, consistently achieving high efficiency scores, except for a slight dip in 2020–2021 due to lockdown measures. Bank-specific factors indicate a converse association between capital adequacy ratio and efficiency, while liquidity ratio and credit-deposit ratio positively correlate with efficiency. Macro factors, including GDP and inflation, have minimal impact on Small Finance Banks efficiency. This study provides a comprehensive assessment of Small Finance Banks’ performance post-COVID-19, shedding light on the factors influencing their efficiency. It offers valuable insights for policymakers and Small Finance Banks to strengthen their role in advancing financial inclusion in India, contributing to a more inclusive and dynamic financial landscape. The findings suggest that Small Finance Banks should focus on expanding their influence in niche segments by increasing assets, deposits, and revenue streams while managing operating expenses and liquidity risks. Listing on the stock exchange and active policy support for research initiatives can enhance the Small Finance Banks ecosystem and drive financial inclusion.

ENGLISH FOR FINANCE STUDENTS - PART 2

In a world where financial landscapes are constantly evolving, understanding the intricacies of finance becomes not just an asset but a necessity. This book, encompassing a wide range of financial topics, is crafted to demystify the complex world of finance for learners, enthusiasts, and professionals alike. Each lesson in this book is designed as a standalone module, allowing readers to dive into topics at their own pace and according to their interests. Starting with the "Fundamentals of Financial Planning," we lay the groundwork for sound financial understanding. As we progress, topics like "Digital Banking and Online Finance" and "The Role of Technology in Modern Finance" explore the digital revolution reshaping the financial sector. We delve into specific markets with lessons on "Stock Market Indices," "Real Estate Investment Basics," and "Commodities Trading," offering insights into different investment avenues. The book also addresses critical issues such as "Financial Consumer Protection" and "Cybersecurity in Financial Transactions," emphasizing the importance of security in the digital age. Global financial mechanisms are unraveled in lessons like "Understanding the International Monetary Fund (IMF)" and "Global Trade Financing," providing a macroeconomic perspective essential for grasping international finance. The chapters on "The Rise of Cryptocurrencies" and "History of Ethereum" bring readers to the forefront of modern financial innovation, while "Understanding the OneCoin Scam and Scandal" and "Understanding Pyramid Schemes in Finance" serve as cautionary tales highlighting the importance of vigilance in investments. For entrepreneurs, "Financial Literacy for Entrepreneurs" and "Starting and Growing Your Business: Financial Strategies for Entrepreneurs" offer practical guidance on managing and growing a business effectively. We also explore economic systems and government policies in chapters like "Understanding the Communist Economic System" and "Understanding the Cuban Government and Economic System." As we approach the culmination of this journey, "Jobs That May Disappear Due to AI in the Future" and "Understanding the Possibility of a Global Financial Collapse" prompt readers to think about the future of finance and its challenges. This book is more than just a collection of financial lessons; it's a guide to navigating the ever-changing currents of the financial world. Whether you're a student, a professional, or simply curious about finance, these pages are designed to enlighten and empower you in your financial journey.

Assessing the impact of oil prices and inflation on bank deposits in Azerbaijan

Bank deposits are vital for the economy, serving as a primary source of funding for banks that facilitate lending, investment, consumption, and overall economic growth. This article aims to examine how oil price fluctuations and inflation, two critical macroeconomic variables, influence bank deposits in Azerbaijan, an energy-exporting country. The primary purpose is to reveal the extent to which these factors, particularly in the context of Azerbaijan’s role as an energy exporter, affect the stability and liquidity of the banking sector. Using the Autoregressive Distributed Lag (ARDL) model and Granger causality testing, the study analyzes the dynamic relationships among these variables. The findings demonstrate a significant long-term relationship and causal effects between oil prices, inflation, and bank deposits. Specifically, a one-unit increase in oil prices results in a 0.057-unit rise in bank deposits, underscoring the positive impact of oil price increases on banking sector liquidity. Conversely, a one-unit increase in inflation decreases bank deposits by 0.812 units in the long term, highlighting inflation’s detrimental effect on financial stability.

The Problematic of Banking Governance in Cameroon: What Model for Appropriate Financing?

This article aims to examine the problems that litter banking governance in order to propose a model capable of boosting financing. Our area of investigation is Cameroon. Our methodological approach is qualitative. It lies in carrying out semi-structured interviews with branch heads and customers of the banks surveyed. Our sample concerns three banks with majority national capital operating in Cameroon. The data is processed using the thematic content approach. Our results show that the perverse effects of prudential regulation, information asymmetry, credit rationing, opacity and the tendency to short-term credit are factors that hinder bank financing. Our study proposes the development of a hybrid governance model capable of boosting bank financing.

The Impact of Artificial Intelligence on Organizational Performance: Insights from VFD Micro Finance Bank (VBank), Lagos State Nigeria

The Impact of Artificial Intelligence on Organizational Performance: Insights from VFD Micro Finance Bank (VBank), Lagos State Nigeria

Household Sector Indebtedness and Its Impact on Financial Stability Indicators in Egypt

The research examines with studying the problematic relationship between the indebtedness of the family sector and financial stability by studying the facts provided by economic theory, research and studies, and then studying the case of Egypt by collecting and analyzing the facts and data related to the studied variables, and the problem of the research is to question the impact of the indebtedness of the family sector on financial stability in Egypt, and the hypothesis of the research is that the developments of financial globalization and financial openness, and by collecting and analyzing the facts Economic and related historical data, as well as the adoption of the inductive approach by making hypotheses among the studied relationships, and analyzing the relationship between variables .The research reached a set of conclusions, the most important of which is the weak impact of family sector indebtedness on financial stability due to the limited amount of bank financing for the family sector and the structural imbalance in the relationship between family spending and bank credit, and the weak capabilities of the private sector in accessing and employing finance , and the most prominent recommendations were the need to follow an economic policy to enhance the role of the family sector in economic growth by increasing the credit provided to the family sector to enhance economic growth According to the levels of household debt commensurate with the requirements of sustainable financial stability.

The Determinants of SME Credit Rationing in Morocco. Case of SMEs in the Casablanca Settat Region

In this article, we are concerned with a central element of the Moroccan economy, namely small and medium-sized enterprises (SMEs), which often find themselves in a situation where alternative sources of financing are not easily accessible, including bank financing. Indeed, Moroccan SMEs are closely dependent on banking institutions to obtain the financial support necessary for their projects. However, these businesses frequently face the phenomenon of credit rationing, necessitating improved access to credit. In this research work, we have contributed to the study of this phenomenon, focusing specifically on the Casablanca Settat region. Our research revolves around two essential objectives. Firstly, we aimed to evaluate the impact of credit rationing on SMEs in this region. Next, we focused on empirically identifying the determinants of this phenomenon. To achieve these objectives, we selected a target population of 218 SMEs from the Casablanca Settat region. Our initial statistical tests revealed that SMEs in the Casablanca-Settat region are facing both total credit rationing and partial credit rationing. Subsequently, the results obtained from multinomial logistic regression tests reveal that the SME's sector of activity, age, reputation, legal status, size, gender of its manager, age, education, nature of the relationship with the bank, and professional experience all play an important role in explaining this phenomenon.

Risk Management Practices in Sharia Commercial Banks in the Financing Sector

To help the Indonesian economy face increasingly complex risks and problems, Sharia Commercial Banks are very important. Threats and difficulties faced by Sharia Commercial Banks both internally and externally. Risk is the possibility of something happening that may have a positive or negative impact on achieving organizational goals. However, work accidents often occur which result in a Sharia Commercial Bank experiencing losses. Of course, recognizing existing risks can prevent work accidents. For this reason, it is necessary to establish a good system that is comprehensive, planned and structured. This research focuses on how to attract investors to provide financing to Sharia Commercial Banks under the auspices of the OJK. This research uses secondary data collection methods in the context of qualitative descriptive research. In the context of Sharia Commercial Bank financing which is under the supervision of the OJK, the findings of this research provide a comprehensive understanding of relevant and efficient risk management techniques. These findings also provide useful direction for other banks in managing financing funds and fostering investor confidence. Furthermore, solving financing problems is carried out with the 3R idea, namely: rescheduling, reconditioning, restructuring

Investigating Bank Financing and the Financial Performance of Listed Industrial Goods Companies in Nigeria

Investigating Bank Financing and the Financial Performance of Listed Industrial Goods Companies in Nigeria

The Influence of Sharia Compliance and Islamic Corporate Governance on The Performance of Sharia Bank Funds In Indonesia 2018-2022

This study aims to determine the influence of Sharia Compliance and Islamic Corporate Governance on the Financial Performance of Islamic Banks in Indonesia. The population of this study is 14 Sharia Commercial Banks in Indonesia, namely Bank Muamalat Indonesia, Bank Mandiri Syariah, Bank BRI Syariah, Bank BNI Syariah, Bank BCA Syariah, Bank Syariah Bukopin, Bank Mega Syariah, Bank Victoria Syariah, Bank Panin Dubai Syariah, Bank Maybank Syariah, Bank Jabar Banten Syariah, Bank Aceh Syariah, Bank BTPN Syariah, and Bank NTB Syariah. The sampling technique in this study is using purposive sampling. The number of samples taken in this study is 5 Sharia Commercial Banks, including Bank BCA Syariah, Bank Mega Syariah, Bank Bukopin Syariah, Bank Aceh Syariah, and Bank Jabar Banten Syariah. Data testing using multiple linear regression analysis. The results of the study show that Sharia Compliance which includes the Islamic Interbank Rate (ISIR) ratio, Profit Sharing Ratio (PSR), Islamic Interest Rate (IIR), and Zakat Profit Ratio (ZPR) has a significant influence on the performance of Sharia Commercial Banks. This study also shows that Islamic Corporate Governance does not have a significant influence on the Return On Asset (ROA) and Return On Equity (ROE) financial performance of Sharia Commercial Banks. In addition, Sharia Compliance has a joint or simultaneous influence on the financial performance of Islamic banks, which is measured through Return on Asset (ROA) and Return on Equity (ROE).

A bibliometric study of financial innovation development trends

Object: The purpose of this article is to identify and analyse the most influential authors, publications, countries, journals on financial innovation and the key trends in their development of financial innovations using bibliometric method based on Web of Science Core Collection data using VOSviewer. Methods: This study used the quantitative and qualitative method. The PRISMA approach helped to sort out 942 articles on the financial innovation topic. The science mapping analysis as the citation analysis of documents, authors and countries, and co-occurrence analysis of all keywords was applied to show the main research trends in financial innovation field. Results: The most productive country is the USA. The most productive author is Oskooee, Mehdi Bahmani. The Journal of Banking Finance published the greater number of papers which is 29. The trends were specified using the clusters. So, business innovation, economic growth, fintech, corporate innovation and financial inclusion are popular trends in financial innovation development. Conclusions: Financial innovation influence our daily life through financial sector, specifically banking sector and fintech products and services. Popularity increases in the fintech products and services, eco and green innovation that affect the company’s performance and image. Developed countries have greater impact to promote this topic.

Influence of short-term funding methods in the systematic risk of Latin American companies

This research aims at identifying the impact of short-term funding methods of organizations (bank funding or commercial funding) on the systematic risk of Latin American companies. The proposal is based on the ideas provided by Hamada (1972) and Modigliani and Miller’s theory (1958, 1963), evidencing the relationship between the funding structure of companies and the systematic risk. Multiple linear regression econometric models were estimated. The systematic risk was measured by levered beta (β) and the respective disaggregation of unlevered beta (βD) and residual beta (βR). The sample under study belonged to Latin American companies from 2009 to 2022. The main findings evidence a negative relationship between short-term commercial and bank debt and unlevered beta from Latin American companies, resulting in higher intensity and significance for commercial debt. The study includes evidences that contribute to the finance literature by making clear that short-term funding methods impact on the systematic risk of organizations. From the practical contribution perspective, this research explains to market actors and investors that the funding structure determined by operational activities, through operational liabilities, must be considered in the asset pricing process.

Fiduciary Guarantee Registration Implementation Through Electronic (Online System) in Indonesia

The aim of this research is to analyze the implementation of electronic fiduciary registration in Indonesia and to analyze the factors that support and hinder the implementation of electronic fiduciary registration. The research methods taken in this study is a normative juridical approach supported by empirical data. Fiduciary as a guarantee institution is regulated in Law No. 42 of 1999 concerning Fiduciary Guarantees and followed up with Government Regulation Number 21 of 2015 concerning Procedures for Registration of Fiduciary Guarantees and Costs for Making Fiduciary Guarantee Deeds. Fiduciary registration cannot be separated from fiduciary collateral because fiduciary registration results in guaranteed legal certainty for creditors and interested parties. However, until now there are still many fiduciary guarantees that are not registered because many things have become obstacles in the registration process for fiduciary guarantees. To overcome the obstacles that occur in daily practice both those that occur in bank financing institutions and non-bank financing institutions (leasing) and notaries in registration of fiduciary guarantees, then the government made a new breakthrough by increasing the service of registration of fiduciary guarantees easily, quickly, and at low cost, namely by conducting electronic fiduciary registration services.

Assessing the Influence of Energy Consumption and Islamic Financial Development on Indonesia’s Economy with Dynamic ARDL Simulations Approach

The purpose of this study is to evaluate the contribution of energy consumption and Islamic financial development to economic growth in the case of Indonesia. The macroeconomy variable namely gross fixed capital formation also involved in the model as control variables considering its significant contribution to economic growth continuously. The monthly data of economic growth, as dependent variable, represented by industrial price indicator. As independent variables, the data of energy consumption denoted by the amount of primary energy consumption while the data of financial development reflected by Islamic Banking financing consists of the amount of mudharabah and musyarakah financing. Moreover, the variable gross capital formation is chosen as the control variables with consideration that the variable constantly has significance contribution to economic growth and cannot be ignored. An interpolation technique performed for variable with annual range and to equalize all data to be monthly. The method of ARDL and ECM chosen as the suitable method to reach the objectives. The result concludes that energy consumption and Islamic financial development has positive contribution to Indonesia’s economic growth. The cointegration exist which means there is a long-run relationship between the variables. Energy consumption and the growth of Islamic finance, as illustrated by musyarakah financing, have a long-term impact on Indonesia's economic growth. The error correction mechanism also found which reflects that there is a mechanism of adjustment when shock happen. This paper presents the latest empirical evidence of the contribution of energy consumption and Islamic financial development to economic growth in the case of Indonesia. The variable of Islamic financial development is breakdown become mudharabah and musyarakah to get deeper analysis. In addition, the involving of capital formation as control variables never been done by previous studies. To the best author’s knowledge, the study that discuss this issue is limited especially in the case of Indonesia which use disaggregate Islamic financial development as well as involving capital formation as the control variables for the case study of Indonesia.

THE EFFECT OF INFLATION AND UNEMPLOYMENT ON NPF IN ISLAMIC COMMERCIAL BANKS IN INDONESIA

This research seeks to examine the influence of inflation and the number of unemployed people on the problematic financing (NPF) of sharia commercial banks. The monthly time period from 2012 to 2023 was used as secondary data in this study. The quantitative method of this study used the time series VAR method which was then transformed into VECM. The data used comes from secondary sources, namely Sharia Banking Statistics from the OJK which includes Problematic Financing data; Bank Indonesia reports accessed via its official website which includes inflation data; and information from the official website of the Central Statistics Agency (BPS) which provides open unemployment rate (TPT) data. Inflation and unemployment are the two main factors that influence Sharia Commercial Bank Non-Performing Financing in this analysis. Study findings indicate that non-performing financing of sharia commercial banks in the long and short term is positively influenced by unemployment and inflation. The conclusion is that there is a significant positive influence between inflation on NPF, the higher the inflation value, the higher the NPF value in Sharia Commercial Banks. Likewise, unemployment has a significant influence on NPF, so the higher the unemployment rate, the higher the NPF level.