Private Banks Research Articles

Job Stress Evaluation of Private Banking Employees in Indonesia through the Job Demand-Control Support Model and the Effort-Reward Imbalance Model

Job Stress Evaluation of Private Banking Employees in Indonesia through the Job Demand-Control Support Model and the Effort-Reward Imbalance Model

Mobile payment-banking efficiency nexus—A concise review of the evolution and empirical exploration of the Taiwan banking industry

This paper utilizes an advanced Network Data Envelopment Analysis (DEA) model to examine the impact of mobile payment on the efficiency of Taiwan banking industry. Inheriting the literature, we separate the banking operation process into two stages, namely profitability and marketability. Mobile payment is then considered as the core factor in the second stage. Our paper discovers network DEA model can effectively enhance the analysis of banking industry’s efficiency, and mobile payment has a notable impact on Taiwan banking industry. Regarding the profitability stage, there is only one efficient bank in 2019 and 2022, respectively. These banks also perform better in terms of “mobile payment production”. In the marketability stage, there is also only one bank in 2021 and one bank in 2022, that can reach to unique efficiency score. This indicates many banks attempt to increase earnings per share through investing in mobile payment services. However, the achievement still needs more wait. This leads to the fact that no bank can reach the ultimate overall efficiency. Within our sample, we also find that regarding promoting mobile payment services, Private Banks outperform Government Banks.

BANKERS’ PERSPECTIVE ON SOCIAL MEDIA BANKING: A STUDY WITH SPECIAL REFERENCE TO SELECT INDIAN BANKS

Social Media Banking (SMB) is an electronic banking channel enabling users to perform their banking services and operations through social media. Most Indian banks use social media for advertisement, customer relations, and marketing communications of products and services, but only a few banks offer services related to social media banking. The main aim of this paper is to study the Bankers' perspective on Social Media Banking services provided by banks in India and the effect of demographic profiles. Primary data was collected through a structured questionnaire to achieve the above goal. The study considered selective public and private sector banks, and the significant variables were social media adoption in banks, benefits, and challenges of SMB. The researcher adopted a simple random sampling method to collect the data from 402 bank bankers who offer social media banking-related services to their customers, and the statistical tools used to attain the objectives of this study are the Independent sample t-test and ANOVA test. The study results from banking professionals whose banks offered SMB services showed a significant effect of demographic variables on social media adoption in banks and the benefits and challenges of SMB. The study's findings provide regulators and banks with insight into the benefits and challenges of social media banking, enabling them to implement a generalized framework and guidelines on social media banking. The researcher suggests to the banks that the benefits and challenges of social media banking pave the way to developing efficient and flawless models for their customers. At last, the study encourages customers to move towards social media for their relationship with banks and real-time grievance redressal.

Bank board diversity on risk and value: evidence from Taiwan

ABSTRACT This study uses the banking industry in Taiwan to investigate how board diversity affects bank’s risk and value. The results show that board gender diversity reduces bank’s risks with lower non-performing loans and financial leverage, while board ethnicity diversity also decreases non-performing loans but not leverage. Both gender diversity and ethnicity diversity improve bank value measured by Tobin’s Q. Our results are robust across different model specifications, after controlling for time-invariant unobservable bank characteristics and addressing the concerns of endogeneity and causality. We show that the gender diversity in government-held banks is more effective in managing risk and enhancing value than that of the private banks. Both gender and ethnicity diversity appear to be the Holy Grail in the Taiwanese banks as they can enhance bank value and lower bank risk. Our results provide important policy implications for the banks and regulators in Taiwan and other markets.

Manifestations of loan growth – profitability and non-performing loans – a study of the Indian banking sector

PurposeAfter half a decade of balance sheet clean-up prompted by the Reserve Bank of India’s (RBI) asset quality review (AQR), Indian banks are back on track for increased loan growth. Being a financial vehicle for the economy, loan growth cannot be put on hold for a long period of time. But it is also important to understand that loan growth carries an inherent risk of default. A trade-off exists between loan growth, non-performing loans (NPLs) and bank profitability. Our study highlights the importance of understanding this relationship.Design/methodology/approachFor our study, we have taken a sample of India’s private and public sector banks. The dataset consists of the financials of our sample for the period 2006–2021. Two-step differenced generalized method of moments (SYS-GMM) estimation has been used to establish the relationship. The mediating role of NPLs in the relationship between loan growth and profitability is examined by the mediation analysis using structural equation modeling (SEM) and the Sobel test. We have used Stata 16.1 for the analysis of our dataset.FindingsThe findings of our study suggest that bank lending is a major contributor to the bank’s earnings. Loan growth after a certain point has a negative impact on profitability, and it also adds to the NPLs of the bank. The study result indicates that moderate loan growth is key to steady and stable growth in the Indian banking industry.Practical implicationsOur study is directed toward understanding the positive and negative manifestations of loan growth. We develop a framework to understand this relationship and then empirically prove it. The study is beneficial for employees and policymakers alike to minimize the negative impact of loan growth.Originality/valueThe issue of the simultaneous impact of loan growth on NPLs and profitability has not been studied in the Indian banking sector. Also, this study adds to the present literature by studying the mediation effect of the NPLs on the loan growth and profitability relationship.

Production efficiency of internet-only banks and conventional banks: Evidence from China and Japan

In recent years, Internet-only banks have begun participating in many countries' financial markets; however, their impact on these markets requires clarification. This study focused on China and Japan and covered the period from 1995 to 2019. We utilized the stochastic frontier approach to estimate the output distance function with a view to comparing production efficiency before and after the entry of Internet-only banks into the financial markets of both countries. The results revealed that China's Internet-only banks are more efficient than conventional banks, while the opposite is true in Japan. Furthermore, although Japan's Internet-only banks outperformed China's, Japan's conventional banks were less efficient than were those in China; this finding suggests that Japan's Internet-only banks adopt more advanced production technologies. Finally, the results of stochastic meta-frontier regression supported the notion that national banks in both China and Japan outperformed private banks between 2015 and 2019.

Asymmetric Return Connectedness Among Indian Equity Sectors: Insights from Recent Global Disruptions

This article aims to study asymmetric shock transmission among India’s National Stock Exchange sectoral indexes before and amid the COVID-19 crisis and the Russian–Ukraine feud using an asymmetric time-varying parameter vector autoregressive connectedness technique. The daily closing price of equity sector indexes from 1 January 2018 to 31 March 2023 were used. The research reveals strong sectoral return interconnectedness, with negative returns spillover dominating the assessment period. COVID-19 substantially impacted connectedness more than the Russian–Ukraine feud. The sectors such as bank, private bank and financial services were net transmitters of risk, and information technology was the net recipient of risk throughout the assessment period, indicating these sectors are not much affected by these crises. Sector return spillover patterns were similar during the epidemic and the Russian–Ukraine dispute, except for the oil and gas and metal sectors, which shifted roles. These findings suggest that policymakers must recognize and assess the peculiarities of industries that are high-risk transmitters when formulating strategies to prevent market failure or mitigate risk transmission to others. Investors may benefit from recognizing industries that operate as risk transmitters and receivers to create effective risk-mitigation investment strategies amid turbulent times.

It Is Our Turn to Innovate: Innovation as the Engine of Economic Prosperity in South America

The pivotal role of innovation in fostering economic growth is widely acknowledged, with a growing consensus emphasizing its correlation with elevated productivity levels and enhanced competitiveness. Yet, there is limited research exploring potential factors that could boost the positive effects of innovation. This study addressed this fundamental gap in the literature by exploring whether financial development factors (private credit, bank assets, and interest rate) significantly moderate the effect of innovation on GDP and GDP per capita in South America—a region where this topic has not been widely studied with data on patents and economic growth. Using regression analysis with panel data from 10 South American countries, this study presents empirical evidence that suggests that policies in the region should promote strategic collaborations between governments and financial institutions such as banks with the aim of creating an environment that allows researchers to increase innovation outcomes and that rewards firms and entrepreneurs for innovating and adopting new technologies. Moreover, the findings of this article underscore that it is imperative that South America allocates more resources to innovation, recognizing it as the driving force to fuel economic growth.

The Relationship between Financial Flexibility and Banking Efficiency: Application Study at Iraqi Private Banks

The Relationship between Financial Flexibility and Banking Efficiency: Application Study at Iraqi Private Banks

Information technology and its impact on developing work in Iraqi banks - Applied research on a sample of private Banks

Information technology and its impact on developing work in Iraqi banks - Applied research on a sample of private Banks

Banking competition in Indonesia: does Fintech lending matters?

PurposeThis paper aims to examine how the rise of financial technology (Fintech) lending affects bank competition. Moreover, this study also identifies the structure of Indonesian commercial banking sector and the different behaviour of competition among bank groups (based on their size, type and ownership) and the joint impact of COVID-19 due to the rise of Fintech lending.Design/methodology/approachUsing an unbalanced panel data set of 118 commercial banks in Indonesia over the period 2018–2022, both static panel and 2SLS/IV data analysis were used and found that random effect model is the best model.FindingsThe results show that the Indonesian commercial banking sector can be considered as monopolistic competition. Moreover, using the Lerner index reveals that the entry of the Fintech lenders increases bank competition. Furthermore, there were different responses to the impact of Fintech lending on bank competition among state-owned banks, private banks, regional development banks and foreign banks. Greater efficiency and stability lead to greater market power. In the meantime, higher level of asset growth, capitalisation and cost-to-income ratio increase the competition. Lastly, higher bank credit growth and lower inflation boost overall bank competitiveness.Practical implicationsThis study highlights some policy recommendations for commercial banks to be aware of the coming of Fintech lenders because they have started to increase the market competition. The government should create a more collaborative ecosystem between banks and Fintech lending to anticipate unhealthy competition.Originality/valueThis study will contribute to the literature by expanding the determinants of bank competition by considering the rise of Fintech lending in the market.

Risk, Capital, And Inefficiency: A Study of Public Sector, Private, and Foreign Banks in India

Risk, Capital, And Inefficiency: A Study of Public Sector, Private, and Foreign Banks in India

The banking system of Ukraine as a factor of social stability in the war

Before the collapse of the USSR, Ukraine was one of the 15 socialist republics. Along with Belarus, the Russian Federation, and the USSR, Ukraine is one of the founders of the United Nations. Ukraine has gone through transformations from a command-administrative to a market system in 30 years. The driving force behind this development was the national democratic forces, the leaders of which were former dissidents of the USSR. One of the main factors of market transformations in Ukraine is the national private banking business. In the conditions of Russia’s direct military aggression against Ukraine in 2022, the banking business of Ukraine has shown its institutional capacity and is one of the stabilizing factors of society. Thanks to the integration of Ukraine’s banking business into the global financial system, millions of Ukrainian refugees have the opportunity to use their accumulated funds in the national currency abroad. The purpose of this article is to analyze the impact of the banking sector of Ukraine on the country’s democratic development, and the contribution of the banking system to countering Russian aggression. The article considers further ways of development of the banking system of Ukraine in the post-war period.

The role of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion in the Kurdistan Regional Government – Iraq

The current research aims to identify the role of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion in the Kurdistan Regional Government, and shedding light on the mechanisms for application “My Account” project as one of the digital transformation mechanisms and improving it in a way that achieves financial inclusion. As well as researching the importance and necessity of achieving financial inclusion with the aim of getting rid of the problem of the financial crisis in the region, especially the problem of the salaries of regional government employees. The research relied on the field method for collecting data through statistical analysis and using SPSS23 programs for data on 47 questionnaire forms obtained from the research sample, which is represented in four categories: bank managers, administrative managers, accountants, and IT employees in government and private banks in Dohuk Governorate, in order to test the research hypotheses. The research reached a set of conclusions, the most important of which are: The results that there is a strong impact of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion. Accordingly, it can be said that the correct application of “My Account” project will have a positive impact on achieving financial inclusion and thus will be an effective factor in stabilizing the financial situation and resolve the financial crisis. The results also demonstrated that the government financial system in the region is traditional, especially in terms of the financial services provided by the system to employees, and this needs to be developed and transformed into a digital system in response to the global digital environment that achieves financial inclusion. The research presented a number of recommendations, the most important of which is the necessity of application “My Account” project in the correct manner and in proportion to the requirements and needs of the employees and citizens of the regional government and as quickly as possible, with the aim of achieving financial inclusion in general and ending the salary problem in particular. Work should also be done to restore confidence among citizens in the region to persuade them to deal with banks, especially in terms of electronic banking services and transactions, in order to achieve financial inclusion successfully

Policies of Credit Restructuring Relaxation as Moderation Variable on the Relationship between Financial Ratios and Banking Performance in Indonesia

This study investigates the impact of Indonesia's newly implemented restructuring relaxation policies as moderating variables on the banking sector's performance. Utilizing panel data regression analysis on a sample of 105 banks from 2017 to 2022, the research examines the relationships between non-performing loans (NPL), loan loss provisions (LLP), efficiency ratios, and bank return on assets (ROA). The findings indicate that prior to the policy implementation, the efficiency ratio negatively affected government banks' ROA, while both LLP and the efficiency ratio negatively impacted private and foreign banks' ROA. Post-implementation, the interaction between these policies and each variable (NPL, LLP, and efficiency ratio) was found to be significant for government banks, whereas none of them showed significance for private or foreign banks. This research contributes to understanding financial regulation dynamics and provides insights for policymakers and banking institutions navigating market complexities.

Improving Frontliner Performance through Digital Financial Literacy Strategy

This study aims to develop a plan for increasing staff performance at a private bank in Bandung by promoting financial digital literacy. 242 frontliners were chosen as the sample via proportionate random selection for this quantitative descriptive study. Data were evaluated using the AMOS 24 Structural Equation Model (SEM). The findings demonstrated that self efficacy, engagement, and ability all have a positive and significant impact on frontline workers' performance, with digital financial literacy serving as an effective intermediary. Based on the study's findings, a private bank performance improvement model that combines self-efficacy, employee engagement, ability, and financial digital literacy has been identified.

Impact of board gender diversity on performance of public sector vis-à-vis private sector banks in India

Impact of board gender diversity on performance of public sector <i>vis-à-vis</i> private sector banks in India

THE ROLE OF CAPITAL IN STRENGTHENING THE RESOURCE BASE OF PRIVATE BANKS

In the article, the resource base of private banks, their size and dynamics, the role and structure of capital in the composition of the resource base are analyzed and given corresponding conclusions. In addition, the article examines the researches of foreign and domestic scientists in showing the role of capital in strengthening the resource base of private banks, and the advantages of strengthening the resource base are researched. In particular, as a result of studying the scientific opinions of researchers, a number of shortcomings and problems in strengthening the resource base were identified. Also, the role of bank capital in strengthening their resource base was studied. Conclusions and practical recommendations were formed based on the conducted research.

Factors Influencing Utilization of Biometrics in Private Banks in Mombasa County

Purpose: The overall goal of the research was to analyze factors influencing utilization of biometrics in the private banks in Mombasa County. Methodology: The study adopted a descriptive research design because it provided a clear outcome and the characteristics associated with it at a specific point in time. The target population for the study was 120 respondents from 20 private registered banks in Mombasa County. The study adopted stratified sampling method to select the respondents from the population. The study obtained primary data through a structured questionnaire. Responses in the questionnaires were tabulated, coded and processed using a computer Statistical Package for Social Science program. The relationship between the dependent variable and the independent variables were tested using multiple linear regression models. The data was analyzed and conclusions drawn. Descriptive and inferential statistics were used whereby the data was presented through tables Findings: The findings of the study showed that legal systems holds a positive linear relationship (r=0.412; p&lt;0.01) and significant association with utilization of biometrics in private banks. Moreover, the results indicates a p-value of 0.003 which is less than 0.01 implying that the association is highly significant. Based on the research and analysis, the study concludes that legal systems, technology maturity, demographic factors, and staff competency have a significant effect on utilization of biometrics in private banks within Mombasa County. Unique Contribution to Theory, Practice and Policy: The research was anchored on technology acceptance model. To ensure efficient utilization of biometrics within private banks in Mombasa County, it is recommended that organizations follow established legislation. Subsequently, banks should update their staff on legislation surrounding biometrics use and security.

Identity-based effect of internal branding on brand performance: the contingent role of co-worker support

PurposeDrawing on the social identity theory (SIT), this study investigates the relationship between internal branding (IB), organizational identity (OI) and brand performance while considering OI as the linking apparatus of internal branding and brand performance. It also explores the moderating role of co-worker support in the relationship between OI and brand performance.Design/methodology/approachA sample of 919 frontline employees working in private banks in India was collected by using multi-stage sampling. Structural equation modeling (SEM) was utilized to examine the hypothesized relations. PROCESS macro for SPSS was used to test mediation and moderation effects.FindingsThe results reveal that all IB dimensions (internal brand communication, brand-oriented transformational leadership and brand-oriented HR activities) directly affect OI and indirectly affect brand performance. Additionally, no moderating effect of co-worker support is found.Research limitations/implicationsThe current study contributes to the existing literature by portraying IB as identity strengthening phenomenon and brand performance as identity-congruent behavior. It also reveals how social context influences brand performance and assists them in socially categorizing themselves.Originality/valueThe present study portrays a complete understanding of the dynamics between internal branding, organizational identity, and brand performance. The study also emphasizes the empirical examination of the potential mediation effect of organizational identity and the moderation effect of co-worker support.