Choice Of Bank Research Articles

Factors Influencing the Use and Choice of Formal Agriculture Credit Sources among Rice Farmers in Chitwan District, Nepal

Agriculture credit is important to sustain and further improve farming practices among rice farmers in developing countries like Nepal. Agriculture credit from formal sources safeguard farmers from fraud and misconduct which are common in informal sources. An investigation was carried out in Chitwan district of Nepal during January, 2023 to identify the factors influencing the use of formal agriculture credit among rice farmers. Further, factors influencing choice of sources among formal agriculture credit users was also assessed. Using random sampling, 59 formal agriculture credit users and 46 informal agriculture credit users were used for the study. Descriptive statistics and logit model were used to interpret the findings. Results revealed that use of formal agriculture credit increases with availability of off-farm income source and membership to agricultural cooperatives among farm household. Efforts should be made to promote participation in agricultural cooperatives to increase usage of formal agriculture credit among farm household. Similarly, choice of cooperatives over bank and microfinance increases with less formal education of the household head and non-availability of off-farm income source among farm household. Likely, choice of bank increases with no participation in agricultural cooperatives and choice of microfinance increases with higher contact with extension workers. Agriculture cooperatives should be further strengthened to provide timely and adequate credit, as it seems to support formal credit users characterized by lower formal education and no off-farm income source.

Banking Preferences and Perceptions Among College Students: A Study on Influential Factors and Service Satisfaction

This study investigates customer perceptions of their choice of bank among college students, focusing on factors influencing their banking decisions. Through a survey of 150 respondents, the study reveals that most students prefer commercial banks, valuing service quality and security. The majority have not utilized bank loans or relief measures during the COVID-19 pandemic. Dissatisfaction with service or limited options are common reasons for considering a bank switch. While respondents generally rate their banks positively, there are varied opinions on employee behavior, individual attention, and operating hours. The findings indicate that while overall perceptions are favorable, there is room for improvement in specific service aspects. This research provides insights into student banking preferences and highlights areas for banks to enhance their service offerings.

Small-business owners and their choice of banks: Some lessons from the banking literature and game theory in the aftermath of the COVID-19 pandemic

ABSTRACT Finance textbooks treat banks as homogenous institutions. Intuition suggests that small businesses should interact with large banks, given the latter’s ability to diversify risk. Large banks are involved in transactional banking as part of their business relationships, and small and community banks use soft information and value long-term relationships with borrowers. During the recent COVID-19 pandemic and the subsequent Paycheck Protection Program lending, large banks supported bigger businesses while small and community banks supported small businesses. To investigate this phenomenon, we focus on the U.S. experience and conduct a game theory analysis. Based on the results, we recommend that small businesses develop long-term relationships with small and community banks, which are more likely to use soft information and support the small businesses during a crisis.

Factors affecting SMEs’ choice of banks in Oman: an emphasis on Islamic banks

Purpose Commercial banks are the catalysts for meeting the financing needs of small and medium enterprises (SMEs). However, not all commercial banks are equally attractive to SMEs because of differences in banking services’ key attributes. Moreover, customers’ preferences vary between Islamic and conventional banks. This paper aims to identify factors motivating SMEs to establish business ties with banks in Oman. Design/methodology/approach The authors collected data from 217 SMEs through a questionnaire survey. The data were analyzed using a t-test and structural equation modeling (SEM). In addition, the research applies the theory of planned behavior as a theoretical framework. Findings The t-test results show that SMEs place greater emphasis on electronic banking, convenient locations, religious beliefs and favorable terms and conditions. The results from the SEM analysis show that the SMEs in Oman consider attractive packages, including favorable rates, transaction processing time, fees and the availability of technology-enabled services, when choosing a bank. Moreover, customers who are aware of Islamic banking products are optimistic about the future of Shariah-based banking. Originality/value As a Muslim-majority country, Oman lags behind its Gulf Cooperative Council peers in terms of the development of the Islamic banking system. For the success of this mode of financing, it is essential to know which factors SMEs prioritize to establish ties with Islamic banks. Hence, the research is expected to provide new information for bank management to devise financial products attractive to investors.

Beyond Traditional Banking: Exploring the Influence of Technology on Depositors' Decision-Making in Bank Selection

Purpose: The banking sector is crucial for the economy, and with growing competition, banks must pinpoint factors influencing depositors' choices. This study aims to uncover how technology adoption by commercial banks plays a role in depositors' decisions. Methodology: A hybrid approached is attempted in this study to explore the phenomenon of interest. In the qualitative phase, focus group discussion was conducted on two heterogeneous groups, each with ten participants. The recorded audio was further transcribed using speech-to-text modules. A natural language processing tool has been used to identify words or phrases that are semantically related or have similar meanings to depositors’ sentiment analysis. The quantitative phase involved descriptive statistics, principal component analysis and regression analysis to explore insight numerically. Findings: Respondents expressed a generally positive sentiment toward technology in banking, influencing their selection decisions, in the qualitative phase. In the quantitative phase, significant technological aspects affecting depositors' post-selection evaluations are identified. Findings from both approaches converge on the same line. Practical implications: Findings of this study may aid decision-makers in banking industry to articulate distinct technological aspect implied in banking service delivery and better design service offerings to attract new depositors and gain competitive advantages. Originality/Value: This is the first study to focus solely on technology to explore how technology influences depositors' bank choices in the context of Bangladesh. Research Limitations: Significant parts of several conversations were sorted out for sentiment analysis. If it was possible to consider all relevant statements of the focus group discussion for sentiment analysis, it might convey a more pertinent sentiment score.

Stabilizing financial networks via mergers and acquisitions

A bi-level model is proposed to explore efficient policies for supporting negotiations on financial crisis resolution. In a principal–agent framework, this model minimizes the welfare loss function of a central authority (social planner, SP) through the simultaneous choice of subsidy levels and potential pairs of banks to merge. The SP’s choice of mergers needs to be incentive-compatible with the autonomous choices of banks, and the evaluation of the financial network must adhere to standard accounting principles. Incentive compatibility is enforced by two options for conditions, based on stable matching or competitive bidding. For the evaluation of the financial network, we employ an extended Eisenberg-Noe clearing payment equilibrium by considering bankruptcy costs and the seniority levels of liabilities. Additionally, liabilities are not cleared among solvent banks, and corporate bonds may be used for clearing payments. The bi-level model specifies conditions for the clearing equilibrium. For demonstration, we use major European banks, and a scenario linked to the adverse economic conditions used in the 2016 EU-wide stress testing.

Bank Reputation and Trust: Impact on Client Satisfaction and Loyalty for Portuguese Clients

The aim of this article is to assess the most relevant factors influencing customer trust in the Portuguese banking sector following the Global Financial Crisis. It also aims to evaluate the impact of trust on satisfaction and satisfaction on loyalty. To address the research objectives and the hypotheses posed, a quantitative study with a descriptive design was conducted. Data was collected through an online survey administered to a sample of bank clients residing in Portugal. The findings indicate that respondents generally trust Portuguese banking institutions, although this trust has been affected by the Global Financial Crisis. The bank’s reputation and financial performance were identified as critical factors in the respondents’ choice of bank. Additionally, the results suggest that both global and domestic financial conditions, bank reputation, client satisfaction, and overall trust significantly influence client loyalty to the bank. This study provides valuable insights into client behavior and perceptions of banks, emphasizing the importance of factors such as trust, client satisfaction, and bank reputation in shaping client loyalty.

Exploring Parental Knowledge, Attitudes, and Factors Influencing Decision-Making in Stem Cell Banking: Rising the Future of Medical Treatment.

Stem cellbanking (SCB) is a promising area of modern medicine with the potential to yield innovative treatments and cures. To effectively educate parents and implement laws and regulations that address parental concerns and encourage informed decision-making, it is imperative to emphasize parental viewpoints and their consequences for future healthcare. The study aims to establish the Saudi Arabian population's level of understanding regarding SCB and to comprehend the elements influencing parental knowledge, attitudes, and SCB decision-making processes. A cross-sectional study was conducted among the population in the Makkah region of Saudi Arabia. Demographic data, knowledge levels, attitudes, and decision-making variables were gathered from 380 respondents. The study reveals a lack in their comprehension of the objectives and possible uses of SCB, together with the main sources of information on those banks and conveniently available banking choices. It showed varied results regarding attitudes about considering an SCB for their children. In addition, the majority of respondents had not made a consent decision about SCB for their children. It also illuminates the factors that could influence participants' decisions about SCBfor their children and shows that a lack of information and understanding is the main obstacle faced by parents regarding SCB. It highlights that participants were generally in favor of learning more about SCB for their children. This study broadens our understanding of parental decision-making toward SCB and clarifies the elements influencing parents' opinions and worries and offers significant ramifications for lawmakers, medical professionals, and SCB. These implications can be utilized to enhance communication strategies, create instructional programs, and ease the fears of concerned parents.

Impact of External Factors on Customers’ Choice of Deposit Money Banks in Akure, Ondo State

The study investigated the influence of external factors on customers’ choices of Deposit Money Banks in Akure, Ondo State. With the population of 22 deposit money banks in Akure, Ondo State, Nigeria, a survey research design was used. Ten bank clients from each of the 11 deposit money banks in Akure that were chosen (50%) out of the 22 deposit money banks in Akure were taken into consideration using the random sampling technique. Information from respondents was gathered via the primary data source, and the study’s hypotheses were tested using linear regression. The study’s conclusions showed that customers’ choice of bank in Akure is significantly influenced by organizational factors (p=0.28<0.005) and that physical factors and customers’ choice of bank have a positive relationship (p=0.032< 0.005). Furthermore, the results demonstrated that, in Akure, Ondo State, customers’ choice of bank is positively influenced by technological factors (p=0.17< 0.005). The study came to the conclusion that customers’ decisions about depositing Money in money banks in Akure, Ondo State, are influenced by outside factors. The study also concluded that banks should cater to the social needs of their customers in order to draw in more of them and that they should operate with little to no bank interest to influence customers’ choices. According to the study, banks should determine which external factors influence customers’ choice of bank and address them appropriately.

Central Bank Digital Currency and Banking Choices

Central Bank Digital Currency and Banking Choices

Probing Factors Influencing Students' Bank Selection: A Case Study of British Gurkha College

This study addressed the factors impacting students' bank choices in Nepal, bridging a research gap regarding Nepalese students. Employing a descriptive research design with quantitative methods, data was collected from 40 students. The findings unveiled influential factors: past bank experiences, bank image, staff friendliness, recommendations, interest rates, ATM services, mobile banking ease, debit card ease, direct bank approaches, advertising, bank location, and virtual access. These factors exhibited varying degrees of impact, with recommendations, bank location, and ATM services as prominent influencers. This study offers valuable insights for Nepal's banks to tailor marketing strategies and enhance their competitiveness in a burgeoning banking market.

Information Search for Bank Loan: A Study of Nepalese Entrepreneur

The paper attempts to investigate how consumers search information for bank loans and endeavors to provide insight into the different sources of information that entrepreneurs mostly used to grab detailed information regarding loan services. Based on data collection through structured questionnaires using correlation and regression analysis, results reveal that entrepreneurs mostly use bank sources as a source of information. Though Nepalese Entrepreneurs are aware of sources of information due to the non-availability of the required information as well as the trustworthiness of the obtained information they believe bank sources as trusted and reliable sources rather than other sources. The sample comprising of 130 employees in the Information Technology (IT) industry which were selected by non-probability sampling. It is concluded that Interest rate was found to be the most important criterion followed by the duration of the loan, monthly installment, payment flexibility, and processing fee by Nepalese entrepreneurs to decide the choice of bank.

Research on the Digital Transformation Development Strate-gy of Commercial Banks under the Background of Financial Technology

At present, implementing digital transformation has become the most common strategic choice of commercial banks, so it is important to study the digital transformation of com-mercial banks. The literature on Fintech and the digital revolution of conventional com-mercial banks is reviewed in this paper. This paper reviews the theoretical and empirical literature, focusing on three main issues: the influence of financial technology on commer-cial banks, the research on digital transformation of commercial banks, and the factors af-fecting the digital transformation effect of commercial banks. The vast majority of schol-ars believe that the use of financial technology can bring customers a more personalized service experience, reduce costs and increase profit levels, but it also means that the com-petitive environment for commercial banks will be more intense. According to the current development of science and technology, commercial banks must put digital transformation into practice in order to achieve sustainable development, and financial technology plays an indispensable role in the digital transformation of the banking industry. With the con-tinuous advancement of digital transformation practice, many factors affect the implemen-tation of digital transformation, including external factors such as government support, and internal factors such as the development of science and technology, digital transformation strategy formulation, and managers' awareness. This paper summarizes what people know about these issues and the questions for future research. People should look for more possi-ble factors that will affect the digital transformation of commercial banks, and study the security issues that may arise from the benefits that digitalization brings to commercial banks.

An Empirical Analysis of the Dynamics Influencing Bank Capital Structure in Africa

Financial institutions, particularly banks, have long grappled with the dilemma of structuring their capital optimally. This process, commonly referred to as capital structure decision-making, is of paramount importance, especially within the financial services sector, where strict regulations are imposed by reserve and central banks in alignment with global Basel guidelines. This study unveils the key factors that determine the capital structure choices of African banks, using panel data encompassing 45 listed banks across six nations that had embraced the Basel III Accord spanning the years 2010 to 2019. The study used the system-generalised moment methods (sys-GMM) estimator to fit the formulated panel data regression model. The study findings showed positive associations between ZSCORE, an indicator of bank financial stability, and net interest margin ratio (NIMR) with bank leverage (TCTE). In addition, the results revealed positive correlations between earnings volatility (EV), profitability (P), and risk (R) with bank leverage (TDCE). This suggests that profitable banks are inclined to favour debt financing, a phenomenon driven by their ability to comfortably service debt obligations with free cash flows. This study’s overarching conclusion underscores the dominant influence of the Liquidity Coverage Ratio (LCR) on African bank capital structures. Whether assessing traditional or Basel III-prescribed measures of bank leverage, LCR consistently emerged as the primary determinant. This finding is of significant relevance to bank executives and regulators, offering them essential insights for informed decision-making by considering striking a balance between equity and debt financing based on financial stability, profitability, and risk profiles.

Measuring the Psychometric Properties of the Customers' Experience with Banking Electronic Services During the COVID-19 Pandemic

The use of banking electronic services (e-services) increased dramatically during the coronavirus disease (COVID‐19) pandemic. This increase has been associated with failures, defects, and shortcomings in such services. Research on this topic is increasingly using different methodologies. The aim of this study was to examine the psychometric properties (i.e., reliability and validity) of a recently developed scale designed to measure customers’ experiences with banking e-services in Saudi Arabia during the COVID‐19 pandemic. This scale has been reported to have acceptable face and content validity. The quantitative research approach is applied and data is collected through a research survey. The scale’s questionnaire has two parts: one part consists of items on demographic variables (e.g., age, gender, and experience of service failure) and the other of 75 items on topics such as perceived information quality, digital commitment, service satisfaction, and cultural impact on choice of e-banking services. A descriptive-explorative, cross-sectional research design was used in this study, which focused on Saudi banks and utilized a non-probability sample of 555 customers. The scale was subjected to normality testing and did not violate normal distribution assumptions. The scale also showed acceptable levels of sphericity, and the Q–Q plot showed a significant relationship among items, reflecting normal distribution of items. The scale’s internal consistency value was 0.986. The results of a principal component analysis showed that all 75 items loaded above the cutoff point of 0.50 and could be subsumed under four factors: information processing and quality of services, perceived justice, security and safety, and e-services recovery and banking choices. The newly developed scale is valid and reliable for the target population and can be used to measure customers’ experiences with banking e-services. Further testing is warranted to ensure the scale’s suitability and stability over time and for other populations.

Atharva Business College Students' Choice Regarding Bank Selection

Commercial banks need to understand the things that influence prospective of customers' bank choice decisions in order to develop an effective marketing plan for gaining new clients. The purpose of this research was to examine the aspects that influence Atharva Business College students' choice of bank. In order to accomplish the stated objective, this study employed a quantitative research approach by administering questionnaires to a sample of 40 students. Descriptive statistics was used to examine the data. The study identifies six key factors that significantly influence students' choice of a bank in college. Factors include convenience in terms of location, the friendliness of staff, low service charges, the rate of interest on loans and savings, the availability of ATM services, and mobile banking options. Researchers advise banks to regularly monitor and assess customer preferences, behaviors, and expectations.

Bond issuance and the funding choices of European banks: The consequences of public debt

European banks raise less funds in the bond market when there is a larger public debt in their national economies and this is reflected in lower leverage. We exploit numerous sources of heterogeneity in our data to demonstrate this result is driven by a crowding out effect from the public arena and not by a sovereign risk channel or political influence. The crowding out effect is stronger for less internationally active or smaller banks, and in banks characterized by more traditional business models. Our findings indicate that additional capital requirements on sovereign bond holdings can also influence bank funding composition via a decrease in the demand for sovereign bonds by the banking industry. The specific effect of these regulatory initiatives is critically dependent on bank characteristics.

Internationalization and Market Value-Added of the Banking Industry in Nigeria

Bank shareholders now regard market value-added as a wealth gauge that reflects the value that banks have accumulated over time. This keeps the management of banks apprehensively unsettled having exhausted the domestic market, leading to consideration of the internationalization of banking operations. However, the effectiveness of internationalization to increase market values are full of uncertainties. As a result, this study looked at the impact of internationalization on the banking industry’s market value in Nigeria. The study used secondary data gathered from the financial statements of eight banks given internationalization license by the Central Bank of Nigeria during a 15-year period from 2007 to 2021. The study used random-effect generalized least square regression, and the results showed that internationalization had a convincing influence on the market value-added of the Nigerian banking business. The research proposed that bank management consider optimizing the internationalization of banking choices in order to develop a broader variety of banking services outside boundaries and so boost the market value-added of the Nigerian banking industry

Struggle to survive: case of flood risk on US community banks

PurposeThe survivorship of firms under extreme weather poses an essential question about the local economy's health. Over 90% of agricultural banks are categorized as community banks, which are important financial institutions promoting local growth. While previous studies suggest that climate change and weather shocks adversely impact community banks' resiliency, studies on whether these institutions engage in risk-reducing management strategies have been limited. In this study, the authors examine strategic choices of local community banks when facing flood events which include (1) safety net increase, (2) portfolio diversification, and (3) branch opening. These strategic choices are the coping mechanisms banks can take to survive while affecting the local competitive lending market.Design/methodology/approachThe authors use panel-fixed effect regressions based on the storm data from National Oceanic and Atmospheric Administration (NOAA)'s National Weather Service (NWS) and the call reports from the Federal Deposit Insurance Corporation (FDIC). The authors focus on community banks' account variable characteristics and the number of offices to examine whether community banks take an active role in managing flood risk.FindingsResults suggest that community banks do employ the selected strategic choices to a certain degree, as it is found that there is an increase in the core capital that absorbs shocks and portfolio diversification. However, the magnitudes of these activities are rather small and not large enough to fully mitigate the climate risk. Also, the authors do not find any evidence of branch expansion associated with local floods.Originality/valueThis study contributes to the literature by examining different strategic choices of community banks in the face of natural uncertainty. Even though concerns of climate risk have been raised in the regulatory setting, a lack of guidance or assessment tools could contribute to the passive action of these community banks, even though climate risks can have a significant economic impact. Thus, the evidence documented from this study calls for further guidelines and the importance of highlighting climate risks on community banks so that they can actively engage in risk-reducing strategies.

Prospects for the development of the digital ruble – a new form of national currency

The article discusses topical issues of the development of the Russian payment system related to the introduction of a new form of national currency – the digital ruble, assesses the benefits for individuals and legal entities provided by the digital ruble, certain types of risks associated with the new payment option. The author, considering the issues of the technology of functioning of the digital ruble platform, analyzes the reasons for the Central Bank's choice of a hybrid platform architecture involving the use of both components of a centralized system and components of distributed registries.