Bank Governance Research Articles

THE INFLUENCE OF LOAN TO DEPOSIT RATIO AND CAPITAL ADEQUACY RATIO ON NON PERFORMING LOANS AT PT. WEST JAVA REGIONAL DEVELOPMENT BANK, Tbk.

This research aims to determine the effect of Loan To Deposit Ratio and Capital Adequacy Ratio on Non-Performing Loans at PT. West Java Regional Government Bank, Tbk. The type of data used is a quantitative data model. The data source used is secondary data. The analytical methods used are descriptive quantitative, multiple linear regression, correlation coefficient (R), coefficient of determination (R2), F test and t test. The research results show the value of the regression equation Y = 14.3929 + 0.00029X1 - 0.7005X2. The t b1 test shows that the Loan To Deposit Ratio has a positive but not significant effect on Non Performing Loans and the b2 t test shows that the Capital Adequacy Ratio has a negative and significant effect on Non Performing Loans. The F test results show that the Loan To Deposit Ratio and Capital Adequacy Ratio have a simultaneous and significant effect on Non-Performing Loans at PT. West Java Development Bank, Tbk. Hyoptheses H2 and H3 are accepted but hypothesis H1 is rejected.

ЭФФЕКТИВНОЕ КОРПОРАТИВНОЕ УПРАВЛЕНИЕ – КЛЮЧ К УСПЕШНОМУ ФУНКЦИОНИРОВАНИЮ БАНКОВСКОЙ ОРГАНИЗАЦИИ

The article discusses the main components of corporate governance in banks, which are crucial for maintaining the stability and reliability of the banking business. Particular attention is paid to the role of the Board of Directors, which is the main authority for overseeing the strategic course of the company and its activities. The issues of risk management, transparency and openness of information, shareholders' rights and compliance with regulatory requirements are also highlighted.

Pengaruh Sistem Pengendalian Intern dan Keputusan Pemberian Kredit Dengan Peran Pemeriksa Internal Sebagai Variabel Mediasi Pada Bank Pemerintah di Kota Ambon

This research aims to empirically test the influence of the role of internal auditors in mediating the influence of the internal control system on credit granting decisions at Government Banks in Ambon City. The research data collection technique is a survey by distributing questionnaires to respondents selected based on sampling techniques. The sampling technique in this research was carried out using a purposive sampling method, namely, sampling with research considerations. The analysis technique used is mediation variable regression analysis, with a significance level used of 0.05 or 5%. The results of the study show that the role of internal auditors mediates the relationship between the internal control system and credit granting decisions.Keywords: Internal Control System, Credit Granting, Role of Internal Auditors

Simulation Model for Predicting Banking Customers Satisfaction Using Chi-Square Test & Naïve Bayes Classifier

Today, it is necessary for all Public, Private and Government bank to find their banking customers satisfaction ratio depending on feedback provided by the customers. These research paper is useful for finding Personal Characteristics and Banking Behavior of Customers. The study uses primary data which was collected from 550 responders. The responders are taken from different profession and different age group. The bank can offer different kind of services like ATM, Net banking, Mobile banking and so on. The objective of the paper is to find the result of customer satisfaction. The result is found by Non- probabilistic technique chi- Square test and probabilistic technique Naïve Bayes Classifier. The chi- square test (symbolized as χ2) is basically done by analyzing the data of the agreed upon method for the d ifference between variables. It is usually a comparison of two statistical data. Naive Bayes algorithm is based on Bayes theorem and is used to solve classification problems. The result of study indicates both positive and negative influence on banking customer behavior. Keywords Simulation, chi-square test, Naïve Bayes Classifier, demographic segmentation, customer behaviors.

PENGARUH AKTIVITAS FOREIGN BUY DAN FOREIGN SELL TERHADAP HARGA SAHAM EMITEN SEKTOR PERBANKAN MILIK NEGARA PADA INDEKS LQ45 DI BURSA EFEK INDONESIA

This study aims to determine the effect of foreign buy and foreign sell activity on government bank companies stock price in LQ45 of Indonesia Stock Exchange. This research focuses on daily period from 1 January 2022 to 31 January 2022 with 4 companies as the population. Determination of the sample was done by saturation sampling method and 4 companies were chosen. This type of research is quantitative research. The type of data used is secondary data that collected from stock securities firm named ‘Ajaib’ using documentation and literature methods. The data is presented with panel data which will be processed using multiple linier regression analysis method through Eviews 12. The results of this study indicate that foreign buy activities has a positive significant effect towards stock price and foreign sell activities has negative but not significant effects on stock prices. Based on the results of the F test, the conclusion is foreign buy and foreign sell activities has a significant effect on stock prices

Strengthening banking sector governance: challenges and solutions

This study examines the understanding of banking governance among the sample participants and its effectiveness in achieving significant objectives. The research methodology employed in this study adopts a descriptive and analytical approach, aiming to comprehensively examine the multifaceted phenomenon of corporate governance within the context of private banks. The purpose of this study was to assess the comprehension of banking governance and its effectiveness in achieving important objectives. This investigation was undertaken to gain insights into the current state of banking governance, its implementation, and the challenges it faces. By conducting this research, we aimed to provide a clearer understanding of the issues surrounding banking governance and offer recommendations for improvement and finding solutions. The findings of our study indicate that the sample participants have a clear comprehension of governance as an efficient system. However, we identified significant obstacles in the implementation of governance and its objectives, primarily stemming from legal challenges and the overall environment. We also noted that success for private banks is contingent on meeting governance requirements, but the banking sector faces challenges both internally and externally, which render control systems less effective. Furthermore, we found that the Basel standards for banking supervision, through the implementation of supervision and control procedures, seek to enhance solvency and risk management, along with prudential measures. These findings are crucial as they provide a roadmap for strengthening governance practices in the banking sector, which is vital for its stability and effective operation. By addressing the issues identified in this study, stakeholders can work toward achieving a more robust and effective banking governance framework.Please confirm if the author names are presented accurately and in the correct sequence (given name, middle name/initial, family name). Author 2 Given name: [Kees] Particle [van] Last name [Paridon]. Author 3 Given name: [Bnar Kareem] Last name [Darwish]. Also, kindly confirm the details in the metadata are correct.correct

Analisis Faktor-Faktor yang Mempengaruhi Profitabilitas pada Bank Umum yang Terdaftar di Bursa Efek Indonesia

This research aims to determine the influence of Non-Performing Loans, Capital Adequacy Ratio, Loan to Deposit Ratio, and Operational Costs on Operational Income on the Profitability of Commercial Banks listed on the Indonesia Stock Exchange. The data used is quantitative and qualitative data. The research population is several commercial banking companies listed on the Indonesia Stock Exchange in 2018 - 2022, both with status as Government Banks, National Private Banks and Joint Stock Banks operating in Indonesia. The samples taken were 7 commercial banks listed in BEI. The analytical method used is data analysis using statistical tests, classical assumptions and multiple linear regression using the Statistical Product and Service Solution (SPSS) 21 software program. The results of this study show that: (1) NPL has a negative and significant effect on ROA, (2) ) Capital Adequacy Ratio (CAR) has a positive and not significant effect on ROA, (3) Loan to Deposit Ratio (LDR) has a positive but not significant effect on Return On Assets (ROA), (4) BOPO shows a negative and significant effect on ROA, (5) There are differences in the influence of NPL, CAR, LDR and BOPO on profitability (ROA) in commercial banks listed on the Indonesia Stock Exchange.

Analisis Faktor Faktor yang Mempengaruhi Non Performing Loan pada Bank Pemerintah Daerah di Indonesia

In this study, researchers observed non-performing loans for the 2019-2022 period at 23 local government banks in Indonesia. This study uses eight independent variables: return on equity, firm size, GDP, equity ratio, capital adequacy ratio, loan-to-deposit ratio, net interest margin, inflation, and the composite stock price index. Meanwhile, bad debts are the dependent variable used. The results of the study using multiple linear regression analysis show that non-performing loans are influenced by capital adequacy ratio, net interest margin, return on equity, and company size. Non-performing loans are not affected by loan to deposit ratio, inflation, GDP, or the composite stock price index.

THE WAYS OF INTRODUCING AI/ML-BASED PREDICTION METHODS FOR THE IMPROVEMENT OF THE SYSTEM OF GOVERNMENT SOCIO-ECONOMIC ADMINISTRATION IN UKRAINE

The objective of the article is to develop and test in practice a mechanism for constructing AI/ML-based predictions, adapted for use in the system of government socio-economic administration in Ukraine. Research design is represented by several methods like qualitative analysis in order to identify potential benefits of AI use in different spheres of government administration, synthesis to generate new datasets for the experiment, and abstraction to abstract from the current situation in Ukraine, population displacement, uneven statistics reporting. Among empirical methods are prediction and experimental methods to construct a mechanism for the implementation of AI/ML prediction methods in public administration, develop a high-level architecture of the AI/ML prediction system, and create and train the COVID-19 prediction neuron network. A holistic vision of the AI/ML-based prediction construction mechanism, depending on data taken from state official online platforms, is presented, in addition, the ways of its possible practical application for the improvement of the national system of state socio-economic administration are described. The main condition and guarantee of obtaining accurate results is access to quality data through platforms such as Diia, HELSI, national education platforms, government banks, etc. The findings of the research suggest that wide implementation of AI/ML-based prediction technologies will allow the government in perspective to increase the efficiency of the use of budgetary resources, the effectiveness of the government target programs, improve the quality of public administration and to better satisfy the citizens’ demand. Future studies should be done to overcome the limitations of the approach: find a way to protect and extract sensitive information from government platforms, fight neural network bias, and create a more perfect system that is able to make multiparameter predictions and is also self-improving on the basis of the obtained results.

Analisis Pengaruh Risiko Pasar, Risiko Kredit, Risiko Likuiditas dan Risiko Operasional terhadap Kinerja Keuangan Perbankan pada Bank Pembangunan Daerah

Profitability is the bank's ability to gain profits through efficient use of assets. High bank profitability shows good bank performance. This research aims to determine the effect of Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL), Operational Costs, Operating Income (BOPO), and Net Open Position (PDN) on Profitability as measured by Return on Assets (ROA) of Regional Development Banks (BPD) in Indonesia. This research took a sample of BPDs that had complete annual financial reports at the Financial Services Authority for the 2018-2021 period, namely 10 BPDs. Panel data regression analysis (combination of cross section and time series) Random Effect Model. The research results show that LDR has a positive and significant effect on ROA as hypothesized by theory. Likewise, BOPO has a negative and significant effect on ROA as hypothesized by theory. Meanwhile, NPL and PDN do not have a significant effect on ROA. This can be interpreted as meaning that the risk has less influence on BPD's operations as a regional government banking bank.

Board Meeting Effectiveness and Bank Performance: Evidence from Sub-Saharan Africa

The main objective of the study was to evaluate the effectiveness and performance of board meetings at banks in sub-Saharan Africa. The study adopted a quantitative research design and collected secondary data from the annual reports of 33 banks in sub-Saharan Africa to cover the period 2011–2020. To achieve its research objective, the study employed the two-step GMM regression model to examine the relationship between board meeting effectiveness and bank performance. A positive and statistically significant correlation between the effectiveness of board meetings and the financial success of banks was discovered in this research. Our results suggest that improving the efficiency of board meetings can be a viable strategy for boosting bank performance, which has significant ramifications for bank governance in sub-Saharan Africa.

Fintech adoption, the regulatory environment and bank stability: An empirical investigation from GCC economies

The study analyzes the impact of fintech adoption on the banking sector's stability in GCC countries from 2010 to 2022. The study also considers the role of fintech regulations in this framework. We construct an index of fintech adoption by banks by considering several factors such as banks' digital presence, mobile banking capabilities, support for open APIs, fintech partnerships, digital payment solutions, automation and artificial intelligence integration, innovation initiatives, user experience focus and embracing new technologies. The regulatory environment is measured through the existence or introduction of fintech-related regulations such as the regulatory sandbox. The findings imply that fintech adoption has reduced banks' stability in GCC. The fintech-stability relationship varies over various bank-specific and country-specific variables. For instance, large and well-capitalized banks are less likely to experience adverse effects of fintech adoption. Moreover, the negative impact of fintech on financial stability is lower for Islamic, foreign and government banks. In addition, banks operating in well-developed and more competitive banking sectors experience lower financial instability when adopting fintech innovation. We confirm these findings with an alternative indicator of fintech adoption. The study also discusses essential policy implications for the sample countries.

ANALISIS TINGKAT KESEHATAN BANK UMUM SYARIAH MENGGUNAKAN METODE RGEC (STUDI KASUS PADA BANK PEMERINTAH DAERAH TAHUN 2019-2022)

This study seeks to assess and examine the health status of Sharia Commercial Banks for the years 2019 to 2022 by employing the RGEC (Risk Profile, Good Corporate Governance, Earnings, Capital) methodology. The type of research used is descriptive-quantitative, with the research subject being regional government banks in 2019–2022. The secondary data used in this study was obtained from each bank's official website. The analysis method used is RGEC aspects and tests for differences between years using the Mann-Whitney U-Test using SPSS v.25. The research results show that the assessment of the bank's health level from the RGEC aspect of Sharia Commercial Banks over the last 4 years, namely the 2019–2022 period, received Composite Rating 1 (PK 1), indicating that Regional Government Sharia Commercial Banks are in a very healthy condition. There is no discernible variation between the health level of banks from year to year throughout the 2019–2022 period, according to the results of evaluating the Sharia Commercial Banks' level of health using the RGEC value from the Mann-Whitney U-Test test results.

أثر الامتثال على الحوكمة الشرعية في المصارف الإسلامية THE IMPACT OF COMPLIANCE ON SHARIA GOVERNANCE IN ISLAMIC BANKS

The study aims to identify the impact of compliance on Sharia governance in Islamic banks in Libya and Jordan. To achieve the objectives of the study, the research model is designed based on previous studies on the relationship between the research variables. The study sample includes a number of employees of Islamic banks in Libya and Jordan. Based on the quantitative approach in this research, all variables were tested by way of the SPSS application and the AMOS statistical software package. Out of 225 copies, (204) samples were collected from the employees of these banks whereby 21 questionnaires were excluded. The study has reached some findings, the most important of which is that there is a statistically significant effect of compliance on Sharia governance in Islamic banks in Libya and Jordan at a significant level of 0.05. It is also clear that the strength of the correlation is high, indicated by the high level of confidence and the high level of assumption amounting to 0.745. The findings also indicate the positive trend of this relationship, that is, compliance is directly proportional to the Sharia governance of the employees of Islamic banks in Libya and Jordan. The study also suggests some recommendations, the most important of which are: That banks should have a general and clear guide and framework for the principles of Sharia governance, and for compliance with laws and Sharia in addition to clearly defining functions. The study advises Islamic banks to deliberate on compliance by adopting and developing compliance functions and establishing an effective management system to evaluate compliance.

The Measurement Of Good Corporate Governance In Islamic Banking And Its Effect On Financial Performance (Empirical Study Of Islamic Commercial Banks In Indonesia)

This research aims to measure the quality of Good Corporate Governance (GCG) in Islamic Banking and examine its effect on financial performance. The independent variables examined include GCG Index, Board of Commissioner (BOC), Audit Committee (AC), Sharia Supervisory Board (SSB), Gender Diversity of BOC and SSB. The dependent variable includes financial performance determined by Return on Assets (ROA). This research uses samples of 11 Islamic Commercial Banks period of 2015-2019. They were selected using judgement sampling method. The data analysis method used panel data regression analysis with Fixed Effect estimation model. The result revealed that the GCG quality of Islamic Commercial Banks in Indonesia adheres to 90% of the indicator used in the GCG Index. Despite that, the GCG Index found no significant effect on financial performance. Moreover, the Good Corporate Governance implication in Board of Commissioner, Audit Committee, Sharia Supervisory Board and Gender Diversity also found no significant effect on Islamic banking’s financial performance.

Incidence of Cervical Pain in Bank Workers of Jalalabad City Afghanistan

Neck pain is pain that starts in the neck and can be associated with radiating pain down one or both of the arms. Neck pain can be caused by a variety of conditions or diseases that affect any of the tissues in the neck, including nerves, bones, joints, ligaments, and muscles. The cervical spine, or neck portion of the spinal column, is made up of seven bones (C1-C7) that are divided from each other by intervertebral discs. During exercise, these discs allow the spine to move freely and function as shock absorbers. Up to 75% of individuals will have neck discomfort at some time in their lives. Bank workers face this problem due to their workplace in relation to computer use and prolonged hours of working. An observational study is done in 150 bank workers from different banks of Jalalabad city. Participants completed a well-tested questionnaire and data was analyzed by Ms office excel program. In analysis, neck pain is dependent variable and age, height and BMI are independent variables, Results shows that Male frequency in bank is 150 and percentage is 100 because according to our community female are not allowed by their families to work in bank. These findings show that neck pain may be associated with type of job, design of work station and job demand (Hogg-Johnson S, 2009; Ariëns GA, 2002; Côté P, 2004). The study aims to find the appearance of pain in the neck v among bank workers of different private and governmental banks also exploring association of different posture, work hours and different mode of setting with neck pain among Bank workers. All the findings of this study strongly supports the hypothesis that neck pain is common in bank workers and showed association with posture of setting, work hours, continuous working hours, type of chairs.

Sharia boards, managerial strategies and governance practices in Islamic banks: a Goffmanesque discourse

PurposeThe study applies Erving Goffman's (1974) “frame analysis” principles to examine how Sharia governance is practiced in Islamic banks and explores the interaction and strategies adopted by bank managers to influence the decisions of Sharia scholars. The study also aims to identify inherent flaws in the Sharia compliance review system.Design/methodology/approachThe study employs the principles of Goffman as a lens to critically analyse a rich dataset obtained through interviews undertaken with 46 key players operating in the governance framework of the Malaysian Islamic banking industry due to its progressive Islamic governance framework.FindingsThe study demonstrates that managers of Islamic banks may engage in “passing” and “covering” strategies while interacting within the governance structure. Concurrently, Sharia boards (SBs) implement “protective practices” during their interactions, adding complexity to their responsibilities within the banks. Consequently, SBs cannot merely be viewed as instruments for legitimising banking operations. This raises questions about the “impression management,” “concealment” and “competence” strategies employed by managers and SB members, as suggested by Goffman's framework. These findings indicate that there is room for further enhancement in the governance practices of Islamic banks.Research limitations/implicationsFuture research could explore aspects related to the governance of Islamic banks, such as investigating the independence and effectiveness of internal Sharia officers. Examining the strategies employed during their interactions with external Sharia boards and other stakeholders could provide further valuable insights.Practical implicationsBy highlighting shortcomings in the governance and compliance review process, the findings could serve as a valuable resource for policymakers. The insights derived could inform the development of regulations aimed at reducing opportunistic behaviour and promoting accountability in the Islamic banking sector.Originality/valueThis study uniquely employs Goffman's concepts of “frontstage” and “backstage” strategies to offer insights into the interactions between Islamic bank managers and SBs and the impact of these interactions on Sharia compliance. The study contributes to the understanding of the dynamics between key players in the governance of Islamic banks and the factors influencing their adherence to Sharia principles.

The Impact of Information Systems on Achieving the Competitive Advantage of Government Banks in the Sultanate of Oman

The Impact of Information Systems on Achieving the Competitive Advantage of Government Banks in the Sultanate of Oman

Peran Pejabat Eksekutif sebagai Pelaksana Fungsi Kepatuhan dalam Penerapan Prinsip Good Corporate Governance pada PT. BPR Gunung Simping Artha Purwokerto

Executive officers are officials who are elected to carry out compliance duties in the company, especially in rural banks, and are directly responsible to the Director. Carrying out tasks is very important for BPR so that the work program complies with applicable regulations. Based on the Financial Services Authority Regulation Number 4/POJK.03/2015 Implementation regarding Governance for Rural Banks, it is stated that the work unit or executive officer assigned to ensure company compliance must carry out management related to compliance with regulations, and then report it to Director. In this study, the company PT. will be specific. BPR Gunung Simping Artha Purwokerto has carried out its compliance duties by appointing executives who are proven through the submitted Good Corporate Governance reports, which reflect the principle of accountability.

Corporate Governance and Operational Performance of Banks in the MENA Region

This article aims to study the impact of corporate governance on the performance of banks operating in the MENA region over the period 2009-2020. The results, obtained using the maximum likelihood method and the system generalized method of moments (system-GMM), show that the size of the board of directors, CEO-chairman role duality, ownership concentration and the presence of remuneration and nomination committees have a significant impact on the performance of banks in MENA countries. In addition, the empirical results revealed that bank size, credit risk, capitalization ratio, economic growth and the quality of the institutional environment are indeed explanatory factors of bank performance. Our findings provide useful information to regulatory authorities to improve the governance mechanisms of banks in the MENA region.