Banking Market Research Articles

Шляхи залучення фінансових ресурсів державними банками для відбудови економіки України

Introduction. The analysis of the availability and quality of financial resources involves identifying sources of funding, established practices of state-owned banks, international programs and funds, criteria for ensuring the quality and sustainability of reconstruction, urgent needs for funding and its availability, ensuring the participation of economic actors in the planning and monitoring of reconstruction programs, accountability mechanisms and ensuring economic, social and environmental sustainability. Problem Statement. The need to expand the sources of term resources on local and international markets, and to distribute them through a system of financial partnerships between state-owned banks and authorized financial organizations to support small and medium-sized businesses, requires coordinated actions among all stakeholders. Although households' long-term funds account for only a small share of the overall financing structure, they are becoming increasingly important in the context of globalization, especially in view of economic recovery and political stability. The purpose is to examine the volume, dynamics and structure of sources of funds raised by state-owned banks in the local market for the purpose of rebuilding Ukraine's economy. Methods. The study used a systematic approach, the principles of systematization of statistical and analytical data, graphical analysis, scientific synthesis, induction and deduction. Results. The article analyzes the volumes, dynamics and structure of attracting credit resources by state-owned banks in partnership with authorized financial organizations, in particular through the loan programs of the Entrepreneurship Development Fund (EDF) and the NBU's refinancing programs for commercial banks. It was found that the amount of resources attracted from the EDF is insignificant compared to the loan portfolios of state-owned banks. To access the EDF loans, state-owned banks invest in government debt instruments (government bonds), which is inefficient in terms of supporting economic recovery, as high interest rates on such instruments cause liquidity to flow into government debt obligations, which puts pressure on the state budget and additional default risks for issuers of such securities. Special attention in the study is paid to the analysis of the dynamics of customers' term deposits by banking groups, including state-owned and private banks, as well as banks with foreign capital. The dynamics of attracting funds from individuals and legal entities of state-owned banks in comparison with large private banks and banks with foreign capital is presented. This made it possible to assess how successfully banks maintain their liquidity and retain customer confidence. Conclusions. In times of war, state-owned banks play a key role in stabilizing the financial system. Business support programs, social payments, and government guarantees have made these banks important to customers, which explains the significant growth in deposit portfolios in 2023-2024. The volume of bank refinancing (collateral, terms, purpose) indicates a change in the NBU's strategy aimed at reducing banks' dependence on the central bank and moving to more market-based liquidity mechanisms. The gradual integration of Ukraine into the EU opens up prospects for state-owned banks to access large-scale and cheap financing under targeted programs, so it is advisable to orient the banks' resource policy towards the relevant mechanisms. In times of war and global uncertainty, state and international guarantees are an important tool for attracting additional financial resources. At the same time, this tool is used to a limited extent. Among the state-owned banks, only Ukreximbank has received direct guarantees from the Ukrainian government to secure creditors' claims. It is necessary to consider the possibility of attracting guarantees from international organizations as a less burdensome and more effective tool for expanding and reducing the cost of funding.

The Too-Big-to-Fail Premium in Tier-2 Capital Bonds and Additional Tier-1 Capital Bonds Primary Markets: Evidence from China

Abstract This study examines the too-big-to-fail expectations in the primary market issuance spreads of commercial bank tier-2 capital bonds and additional tier-1 capital bonds in China. Using a sample of 574 issuances with total amount of 4.76 trillion RMB (749 billion USD), we conduct median regressions with the issuance spreads as the dependent variable. The coefficients of DSIB and GSIB are negative and statistically significant at 1% and 5% levels respectively in the full sample, and are negative and statistically significant at 1% level in the subsample after the guidance on asset management businesses was announced. Ceteris paribus, the issuance spreads of capital bonds of systemically important banks are 15.2 bps to 19.7 bps lower than those issued by other banks. The too-big-to-fail expectations and implicit guarantee of systemically important banks in the Chinese bond market, which narrow the primary market spreads of capital bonds issued by systemically important banks, may account for the results. To address the potential endogeneity issues, we use 90% quantile and 95% quantile of sample bank consolidated assets as proxies of systemic importance, and use China Development Bank bond yields to calculate issuance spreads, and the results show that the conclusion is robust.

Private banking market developments: Evidence from Hungary

Private banking institutions serve the financial sector’s wealthiest clientele via a dedicated value proposition. Based on the relevant tendencies and statistics, a remarkable expansion can be outlined since the mid-1990s. The aim of this study is to elaborate the Hungarian private banking market’s development as a case study. The paper also intends to add to the literature on this unique segment of the financial market. Based on the available statistics, the analysis primarily focuses on the Hungarian private banking market’s rapid development process. This can be underpinned by the clientele’s savings, number of accounts and respective segmentation limits of the institutions. Referring to the amount of savings, a correlation analysis indicates significant co-movements with specific social and economic variables. The growth rate of the Hungarian clientele’s savings outperformed the respective indicator in Western Europe during the review time period (2007–2020). The current paper also includes a section that summarises general challenges that private banking managers need to address during the development process. Generally, the literature on private banking can still be considered scarce, whereas there is a lack of studies on the Central-Eastern European region. The analysis of the Hungarian sector’s development path can serve with relevant information to any financial expert in the field.

The Rise of Digital Banking in the UK Financial Sector and Its Impact on Commercial Banks

In the contemporary financial domain, the emergence of digital banks has revolutionized operational models in traditional commercial banking. This article delves into how digital banks, through advanced technology and customer-centric services, compel commercial banks to revaluate their operational and regulatory frameworks. Specifically, it focuses on the digital banking market in the UK, analyzing how digitalization and technological progress are driving the evolution of competitive dynamics within the financial sector. As one of the worlds foremost financial hubs, the UKs trends in financial market development have profound implications for the global financial system. The British government and regulatory bodies have proactively adapted to these shifts, framing policies that facilitate innovation while ensuring security and compliance within digital banking. This backdrop sets the stage for this report to explore the transformative impact of digital banks on traditional banking models in the UK, aiming to understand the regulatory adaptations and the overall influence of digital entities on the conventional banking landscape.

The Impact of Technological Innovations on Bank Performance in Emerging Economies

On a global scale, technological innovations have achieved great success in the process of economic development of national economies, especially in the banking sector. Technological innovation is largely used by the banking sector to create competitive intelligence and competitive advantage, as it helps banks improve their services and cost efficiency, as fewer employees and fewer traditional branches are needed. However, this current study focused on examining the impact of technological innovation on bank performance in 40 emerging markets from 2000 to 2021. Findings from the correlation results show that there are strong positive correlations between technological innovation and bank performance in emerging markets. Similarly, we also find the existence of cointegration between technological innovation and bank performance and the existence of a long-run relationship between technological innovation and bank performance in emerging markets, as implied by the results of tied tests. Our study also found from ARDL and GMM results that there are long-term significant relationships between technological innovation and emerging market bank performance. After making these discoveries, we recommended policies such as improving the technology hub of emerging markets and extending banking services to emerging markets' underbanked populations living in remote areas using technology tools to improve bank performance in emerging markets.

Concentrated bank market and SMEs’ collateral issues: a study of the firms of developing Asian countries

Collateral is a significant challenge for small and medium enterprises (SMEs) in acquiring formal credit. Bank market concentration can cause to increase collateral demand through enhancing bank market power. This study explores the relationship between bank market concentration and the collateral challenges faced by SMEs in accessing bank credit by employing a probit regression model. The analysis utilizes a sample of over 25,000 firms from 19 developing Asian nations. The datasets combine firm-level data sourced from the Business Environment and Enterprise Performance Survey (BEEPS) with country-level financial data obtained from the Global Financial Development Data (GFDD) which are provided by the World Bank. The results reveal a significant positive correlation between bank market concentration and the collateral challenges encountered by SMEs in developing Asian countries. In markets characterized by high levels of banking concentration, financial institutions tend to exhibit risk-averse behavior, manifesting in an increased propensity to demand collateral for both SME and large enterprise loans. Consequently, this heightened bank concentration exerts additional pressure on SMEs in acquiring bank credit. To foster an environment conducive to SME financing, countries with high levels of banking concentration should enact regulatory measures aimed at managing and constraining market concentration levels.

Credit Supply or Demand? The Changing Role of Structural Market Forces in Bank Lending*

ABSTRACT Recent crises have shown that disruptions in credit markets can have serious macroeconomic consequences. This paper aims to assess the structural drivers of the bank lending market to non-financial corporations using the structural VAR methodology in a small, open, and bank-based euro area economy – Slovakia. The results show that credit demand shocks (loans demanded by firms) are at least as important as credit supply shocks (loans supplied by banks) in the lending market, and that this importance changes over the cycle. These findings have important policy implications, as responding to these shocks may require different policy measures.

Prospects for the development of foreign economic activities of the Russia banking sector in China

Relevance. In modern conditions of economic uncertainty and difficulties of doing business in connection with the application of sanctions, banks need to look for effective tools and ways to increase the effectiveness of mutual cooperation with other states to overcome the prevailing circumstances. During the work, the main aspects of opening and functioning of a bank branch in China were considered, as well as competitors at both the macro and micro levels were analyzed. Based on the SWOT analysis, the paper identifies the strengths and weaknesses, opportunities and threats of introducing a branch of a Russian bank into the Chinese banking market. The study identifies promising regions for the development of foreign economic activity and forms a range of banking services that contribute to the sustainable development of the branch of the Russian bank in the foreign market.The purpose of the study is to substantiate the need to develop the foreign economic activity of a Russian commercial bank in China.Objectives: Based on a comprehensive analysis and acceptability of the Chinese banking services market, an assessment of the current state of PJSC Expobank, an analysis of competitors in the proposed region and the specifics of a specific location, to develop a plan for opening a bank branch in China.Methodology. The study is aimed at achieving this goal and is based on a review of scientific research by both domestic and foreign economists, as well as an analysis of a number of requirements for opening a bank branch in China.Results. In the course of the work, the process of opening a bank branch in China for carrying out activities was analyzed, the advantages and disadvantages of expanding the boundaries of presence were identified, and promising areas for starting foreign economic activity were proposed.Conclusions. The conducted research gives grounds to conclude that the expansion of the geographical presence in China will allow PJSC Expobank to gain access to world economic centers and expand the boundaries of its activities.

Determinants of Bank Selection: A Study on Consumer Perceptions and Expectations in Albania

This study investigates the factors influencing consumer perception in selecting banking services, focusing on service quality, customer satisfaction, and brand reputation within the Albanian banking sector. Using a structured questionnaire, 213 valid responses were gathered from customers in major cities, including Durres and Tirana. The analysis involved factor analysis, reliability testing, and regression analysis to explore the relationships between the identified factors and consumer decision-making. The findings reveal that service quality, encompassing tangibles, reliability, responsiveness, assurance, and empathy, plays a critical role in shaping consumer perceptions, with assurance, reliability, and responsiveness having the most significant impact. Additionally, customer satisfaction and the bank's brand influenced the selection process significantly. The results underscore the importance of banks enhancing service quality and maintaining a strong brand reputation to attract and retain customers in a competitive market. These insights provide valuable implications for bank marketers and strategists aiming to develop effective customer-centric approaches.

Study on the Tort of Misrepresentation in the Inter-bank Bond Market--Taking Case No. 1 of the Beijing Financial Court as an Example

Chinese interbank bond market dates back to June 1997, when the People's Bank of China decided to open an interbank bond trading business at the National Interbank Lending Center, which was formally established. In the following years, this market developed relatively fast, and in June 2002, the bond counter market of commercial banks began to operate, which to a certain extent made the interbank bond market, which institutional investors dominate, expand through the counter trading for all kinds of investors in the whole society.In recent years, applying direct financing tools such as corporate bond issuance has become increasingly widespread. This paper takes Beijing Financial Court Case No. 1 as an example to study in detail the important reasons for the emergence of this type of infringement, focusing on the obligations and responsibilities of each participant, including the issuer Dalian Machine Tool Group, the intermediary bank Industrial Bank, and the investor Bluestone Capital Management. This paper aims to sort out the obligations and responsibilities of each participant in the inter-bank bond market to find out the reasons for the emergence of the phenomenon of misrepresentation and to explore the issues that appear to be suitable for this paper to find out the causes of misrepresentation, explore the operation rules and risk prevention measures of the interbank bond market that are suitable for China's national conditions, to solve the problems of misrepresentation, standardize the obligations and responsibilities of all parties, and promote the development of China's interbank bond market.

Bank Direct Marketing Campaign Success Prediction

Nowadays, there are more new and innovative bank marketing strategies available that contribute to customer engagement and acquisition. Banks must launch marketing campaigns that can successfully attract customers from other competitors. Therefore, the purpose of the research is to apply Machine Learning techniques in predicting the success of a bank’s direct marketing campaign using supervised classification algorithms. Six algorithms are implemented which are Logistic Regression (LR), Support Vector Machine (SVM), Decision Tree (DT), Random Forest (RF), Gaussian Naïve Bayes (GNB) and Extreme Gradient Boosting (XGBoost). In this paper, feature selection is performed, and 8 selected features are used to make the prediction. The experimental result shows that the Random Forest model has the highest accuracy and ROC AUC score which makes it the champion model in this paper. Still, these results may vary according to the nature of data preprocessing and algorithms implemented.

Banking Service Technologies as a Tool for Increasing the Efficiency of Interaction with Clients

Introduction. The efficiency of customer service in a commercial bank is inextricably linked with the need to implement modern banking technologies that affect the speed and quality of the service provided. The intensity of development of banking technologies requires a study of their features and application criteria. Purpose of the study. To study the trends in the implementation and development of modern technologies in banking and their impact on the quality of bank customer service. Methods. The study used such general scientific methods as analysis and synthesis, formal and dialectical logic, statistical processing methods, and a systems approach. The object of the study was Sberbank PJSC, a leader in the implementation of modern technologies in the banking market. Results. The article considers the main components of banking technologies. The influence of technologies on the effectiveness of banking services is substantiated. Positive and negative aspects of the implementation of modern banking technologies in the customer service process are highlighted. Modern service technologies used in the banking system when creating a digital infrastructure, regulated by the Central Bank, are highlighted. The trends in the use of modern banking technologies are considered based on the degree of digitalization development in the bank, age preferences, as well as as a result of the impact of the coronavirus pandemic. The performance indicators of Sberbank PJSC as a technological leader in the banking services market are considered. Conclusions. Effective interaction of banks with clients in the context of digital transformation is carried out using modern banking technologies containing many components with appropriate characteristics. Maximizing efforts to use modern technologies contributes to the expansion of the client base and profit growth.

Minat Masyarakat Muslim terhadap Jasa Bank Syariah Perspektif Bank Syariah dan Perilaku Masyarakat

Indonesia is an ideal market for Islamic banking because the majority of the population is Muslim. Only 6.63% of the total national banking assets were owned by Islamic banks in Indonesia in 2022. This shows that people are not too interested in using Islamic bank services. This research is qualitative research that uses a case study approach. Data collected from interviews with a hundred randomly selected people. The purpose of this study is to determine the level of public demand for Islamic banks based on the perspective of Islamic banks (marketing mix) and community behavior. The results of the study show that factors related to Islamic banks include the lack of office networks and promotions that make Muslims not use their services. In addition, personal and social factors are also the most important factors in influencing people's behavior. The study recommends Islamic banks to create marketing policies that are appropriate to the Muslim community.

User Sentiment Analysis Towards Islamic Banking Applications in Indonesia

This study aims to analyze user sentiment towards Islamic banking applications in Indonesia, focusing on Islamic banking applications that have the lowest ratings on Google Playstore. The analysis was conducted to understand perceptions, satisfaction, and factors that influence user experience towards both applications in the context of Islamic economics. The research method used is a quantitative approach with sentiment analysis techniques on user reviews taken from Google Playstore. Data was collected by scraping user reviews and analyzed using the Natural Language Processing (NLP) method to identify positive and negative sentiments. In addition, descriptive analysis was used to explore the main themes that emerged in the user reviews. The results showed that the trust factor was the main contributor to positive sentiment, reaching 45.16% of the total positive sentiment. The feature factor was also significant, contributing 27.90%, while the Sharia aspect factor contributed 6.29%. The technical and service factors contributed 11.61% and 5.97%, respectively. These findings indicate that trust in the application, including security and integrity, as well as relevant features, is an essential element in shaping positive user sentiment. This study provides valuable insights for Islamic banking application developers and related parties to understand user needs and expectations. In addition, these findings highlight the importance of improving aspects of trust and application features to increase user satisfaction and loyalty. These findings contribute to the literature on Islamic economics and Islamic banking app development in the digital era and provide practical guidance to improve application performance in the Indonesian digital banking market.

Research on the Operation, Market and ESG Efficiency of China's Local Commercial Banks in the Context of COVID-19

Research on the Operation, Market and ESG Efficiency of China's Local Commercial Banks in the Context of COVID-19

АНАЛІЗ ДІЯЛЬНОСТІ БАНКІВ НА ФІНАНСОВОМУ РИНКУ УКРАЇНИ

The article analyzes the activity of domestic banks in Ukraine's financial market and examines the state and dynamics of the banking system's assets, capital, and liabilities for 2020-2023. Ukraine's financial market is experiencing significant challenges due to martial law, but these hard conditions also driving radical change and innovation in the sector. Due to the specificity of their activity, banks occupy a special place in the market economy and have a significant impact on the development of the financial market and the economy of the country. The integration of the national banking system into the world financial space is one of the leading directions of economic globalization, which strengthens the requirements for domestic banking institutions to increase their competitiveness and efficiency in providing financial services. This makes it necessary to study the essence and peculiarities of the functioning of banking institutions in the financial market of Ukraine in the modern, changing conditions of the development of economic relations between subjects of the national and international economy. The trend of consolidation of the banking system and withdrawal from the market of unreliable banks or banks whose capital belongs to under-sanctioned owners has been revealed. It was determined that despite the decrease in the number of these institutions, there was no significant deterioration of the main quantitative and qualitative indicators of the bank's activity, which indicates the stability of the efficiency of their activity. The state, dynamics, and quality of the banking system's credit portfolio were studied, and banks' compliance with NBU prudential regulations regarding credit risk was analyzed. The consistently high value of 45% of the share of bank assets in GDP confirms the overall efficiency of these financial institutions. A positive thing is the reduction of NPL before the full-scale invasion, but with its onset, this indicator increased again. A characteristic feature of the activity of domestic banks at present is a significant increase in the interest of institutions in investments in securities, in particular, military government bonds, the share of investments in these securities in the total assets of banks is rapidly increasing. To stabilize the financial state of the country's economy under the influence of "force majeure" circumstances, the banking system must constantly adapt its activities on the financial market, acting as an intermediary in the circulation of capital and financial resources

The Role of Innovation in the Competition Between Fintechs and Traditional Banks in Brazil

The Brazilian banking market has distinct and peculiar characteristics, resulting from its historical evolution, specific cultural traits and control exercised by the Central Bank. This article aims to analyze, from the perspective of one of the largest Brazilian banks, the role of innovation, products and processes, in the competition between fintechs and traditional banks. The methodology used was a single case study, qualitative and descriptive approach, with data collection through interviews with managers and customers of Alfa Bank and internal and external documentary survey. It has been evident that the emergence of Fintechs, with its flexible business model, with reduced operational costs, provided by product and process innovation, impacted the banking market in Brazil, traditionally dominated by a small number of large banks, which operated in a traditional way. The analyzed bank, known as Alfa, follows technological developments and improves its main products and services, taking into account suggestions from both employees and customers. The results also showed that Brazilian customers recognize the importance of innovation, especially technology-based, but also value the physical presence of traditional banks, which inspires more confidence in them than Fintechs, which operate online.

Analysis of the Effect of Security, Effectiveness, and Ease of BTN Mobile Services on the Mobile Banking Marketing Strategy of PT Bank Tabungan Negara (Persero) Tbk Yogyakarta Branch

This study aims to determine the influence of service security factors, service effectiveness, and service security in marketing strategies for PT Bank Tabungan Negara or Bank BTN KC Yogyakarta customers. This study uses a quantitative approach using the Accidental Sampling technique, which produces 100 samples. The data analysis technique is processed using IBM SPSS 26 software. The results of the study indicate that service security and service effectiveness at BTN Mobile have a significant positive effect on mobile banking marketing strategies, while ease of service does not have an influence on the mobile banking marketing strategy. This research is useful to help banks understand what factors influence marketing strategies in using mobile banking services to improve their mobile banking services so that they better meet customer needs and desires such as security, effectiveness, and ease of mobile banking services.

Bibliometric analysis of service quality and customer satisfaction in Islamic banking: a roadmap for future research

Purpose This study aims to conduct a comprehensive bibliometric analysis, assessing studies related to service quality and customer satisfaction in Islamic banking. Design/methodology/approach Using a bibliometric approach, this research draws from literature samples retrieved in April 2023 from the SCOPUS database. The sample encompasses 138 articles published between 1999 and 2023, adhering to specific selection criteria. Analytical tools such as R program, VOSviewer and Microsoft Excel were used to categorise the data into three primary domains: productivity, citation patterns and network analysis. These categories further include the identification of research flows and prospective areas for further investigation. Findings The results indicate a substantial surge in publications between 2011 and 2022 involving 372 authors. This study identifies the primary contributors in terms of countries, affiliations, publications, sources and researchers. Seven distinct clusters emerged from the 138 papers, encompassing customer attitude, comparison studies, digital banking, customer loyalty, customer trust, consumer determinants and service quality. Additionally, the study outlines a future research agenda, posing specific research questions. Research limitations/implications Recognising the limitations inherent in focusing solely on Scopus-indexed publications, future studies may benefit from incorporating various databases, such as the Web of Science, for a more expansive exploration of study units. A systematic review of articles on a specific topic could also enhance the comprehensiveness of the study. Practical implications This investigation empowers Islamic bank managers to devise targeted marketing plans, differentiating themselves from competitors. By implementing relevant improvements in operational and service processes, managers can enhance the customer experience, fostering a lasting competitive advantage. For academics, this study lays a robust foundation for further research, encouraging the development of a comprehensive conceptual model and empirical testing. The identification of current research gaps enables researchers to focus on areas that remain underexplored. Originality/value This study not only illuminates critical gaps in existing research but also proposes a research agenda to guide future researchers in remaining pertinent, particularly within the context of Islamic banking marketing.

Navigating the Adoption of Islamic Banking in the Base of Pyramid Market of Pakistan

The purpose of this research paper is to examine the adoption of Islamic banking (AIB) in the Bottom of the Pyramid (BoP) Market of Pakistan. The study used theory of planned behavior to hypothesize the relationship of the attitude (ATT), subjective norms (SN), perceived behavioral control (PBC), and Islamicity of the Product (IoP) on adoption of Islamic Banking (IB). Exploratory research design was used with a total of 400 questionnaires were distributed using a multi-staged stratified sampling (random sampling within each stratum) approach of which 320 usable questionnaires were returned representing 80 percent response rate. Partial Least Square Structural Equation Modeling (PLS-SEM) approach was used to analyze the hypothesized relationship of the conceptual framework. Results indicated that attitude (ATT), subjective norms (SN), and Islamicity of product (IoP) explained notable effect on the adoption of Islamic banking comparatively the perceived behavioral control (PBC). The overall effect of ATT, SN, PBC, and IoP explained 39.3 percent on AIB within the context of BoP. The adoption of Islamic banking counts the aforementioned variables with their countable effects. The inclusive outreach and features explaining the Islamicity of the financial products can enhance the span Islamic banking market share. Islamic banking over the past decade has witnessed tremendous growth in Asian countries due to innovative financial offerings based on the Sharia Principles of Islam. This study contributed on how the Islamic financial products can be penetrated in the low-income markets like Pakistan with its specific focus in Southern region of the Punjab province. The theoretical framework of the study has demonstrated how the customer closely associated behaviors navigate the adoption of the Islamic banking.