Bank Reputation Research Articles

Determinants of Islamic banking adoption in Tunisia: empirical analysis

PurposeThe purpose of this paper is to identify the main factors influencing the adoption of Islamic banking services in Tunisia.Design/methodology/approachThe paper presents primary data collected by self-administered questionnaires involving a sample of 239 respondents located in Tunis city. Respondents were conventional banks’ customers who were actually non-users of Islamic banking. A descriptive statistical analysis was conducted to determine consumers’ awareness of Islamic banking.FindingsThe results revealed that Islamic bank reputation, relative advantage of Islamic banking and its compatibility with consumer religious beliefs, values, lifestyle and banking habits influence positively the intention to use it. However, it seems that perceived complexity and risk impact negatively the consumer intention to adopt this new financing system. The major finding of this study is that there is a general lack of consumer awareness about Islamic banking in Tunisia.Practical implicationsBy identifying the drivers and inhibitors of Islamic banking acceptance among potential adopters, this research aim to help banks’ managers to target their actions and strategies more effectively.Originality/valueThis study is one of the earliest to be conducted on customers’ perception and willingness to adopt Islamic banking services in Tunisia. It makes a contribution to the Islamic banking adoption literature by extending and testing the diffusion innovation theory (Rogers, 2003) in the context of Tunisia.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI MINAT MENABUNG MASYARAKAT PADA PT BANK RAKYAT INDONESIA (PERSERO) TBK CABANG BANGKALAN

The purpose of this research is to analyze the influence of the independent variable in the partial (singly) against interest saving society and to know the most dominat influence the interest saving society in Bangkalan. The data are used in the research is the primary data obtained from the dissemination of questionnaires to consumers who become the respondent as well as secondary data obtained from BI (Bank Indonesia) and the central statistical office Bangkalan. Data tested reliability and validity, the method used in this research is quantitative analysis method of ologit (Ordered Logit) using STATA 10. Significant variables that influence is income variable, gift, age and reputation of banks, while no effect significant variables is interest rest, facilities, security and education. Variables that have a dominant influence on the interest saving society is a income variable.

On the Reputation of Islamic Banks: a Panel Data Qualitative Econometrics Analysis

This study investigates the issue of reputation for Islamic banks. Bank reputation can either be modelled using a direct approach based on Game Theory (Chemmanur and Fulghieri in J Financ 49:57–79, 1994) or through an indirect approach that investigates linkages between conventional and Islamic banks. Adopting the indirect test approach, we propose a binary measure of Islamic Banks (IBs) reputation by testing their dynamic interactions with regard to conventional banks. Interestingly, we propose different qualitative econometric specifications to capture the drivers of IBs’ reputation. Using panel data for 10 major conventional banks and 10 Islamic banks over the period April 2006 – February 2013 (about 17,800 observations), we show that reputation probability can significantly increase in line with Islamic banking performance, while excess risk taken by Islamic bankers will decrease it. Further, we show that an environment with high global financial risk -induced for example by an increase in conventional product risk- has a negative effect on IBs’ reputation.

Evolución del sistema financiero peruano y su reputación bajo el índice Merco. Período: 2010-2014

The aim of this study is to analyse the evolution and performance of the Peruvian financial system in the last few years, as well as the role of the banking reputation in this, taking different bases such as the Merco Index and financial solvency. The study is both quantitative and qualitative, and is specifically focused on the 4 most representative banks of the system, and selected on the basis of investments, deposits, and assets. The analysis looks to establish an initial relationship between corporative reputation (through the value of the Merco Index) and financial solvency, with the analysis being able to be complemented with further studies with the other indicators that are shown in Annexes 1 to 3.

The Investment Bank’s Reputation And The Price Of Underwriting Services: Evidence From China

In this paper, I examine the influence of the investment bank’s reputation on the price of underwriting services of Chinese firm. Based on a sample of offers from 2004-2015, the results show that prestigious investment banks charge higher fees. Furthermore, in comparison to big firms, prestigious investment banks charge more underwriting fees for small firms. In comparison to state-owned firms, high-reputation investment banks charge higher underwriting fees for non-state-owned firms. The results indicate that the investment bank’s reputation capital is different for different firms. For firms with more information problems, the reputation of investment banks is more valuable.

Investment Bank Reputation and IPO Qualifications

This study examines the influence of investment bank’s reputation and political connection on the IPO qualification of Chinese firms. The results show that firms which are sponsored by prestigious investment banks are more likely to pass the regular screening process. Also, the investment bank’s political connections have no significant impact on the IPO qualification. Furthermore, we compared the various investment banks’ customer’s characteristic. Thus, the results show that the customers of prestigious investment banks have more large-scale, are high growth companies, and are more central enterprises. This indicates that high reputation investment banks tend to choose low risk and high growth prospective IPO companies in order to avoid damage to the reputation.

Identifying and Evaluating the Criteria's Affecting of Customer ExperienceUsing Fuzzy Dematel Approach (Case Study: Branches of Bank Melli in Tehran)

Customer experience is one of the most important factors that maintains the customer for banks and turns him into a loyal customer in the competitive marketplace conditions. This concept includes any type of interaction, feelings, perceptions, reactions, thoughts and other related cases from customers about the organization especially in the circumstance of service organization. In this study, 7 factors were identified as key determinants or constructs in the customer experience that according to the methodology of use the technique of fuzzy dematel, the most influential factor is the diversity of services and facilities provided in the bank. Other affecting factors include staff and managers of banks dealing with customers and quickness and easiness of using the bank's services. The factors that are affected are the communication system with the customers in the bank, services environment in bank and advertising as well as the bank's reputation. According to the results, the most influential factor in the customer experience of the bank services is in fact the diversity of services and facilities provided by the bank and how the bank directors and staff deal with customers indicating that for customers the main services of bank and how the staff deal with them is very important and these two factors should be focused to increase better experience of customers.

Determinants of Micro Enterprise Owners’ Loyalty towards Their Favourite Banks

Banking is a service that lies in a very competitive industry in most developed and developing countries, with different brands competing in a scenario of increasing banking and credit penetration. In a business-to-professional setting for banking, the range of services that a client uses with a bank is very high compared to retail banking. Thus, this paper would like to examine the loyalty of the micro-enterprise owners towards their favourite banks. Using both local and international banks in Malaysia as the focus of the study, an exploratory research was carried out to assess micro-enterprise owners’ level of loyalty to their banks. Self-administered questionnaires were collected from 356 banks’ business customers of various conventional and Islamic banks. The findings from this research have shown that a bank's reputation, quality services as well as customer relationship have a direct relationship to micro-enterprise owners’ loyalty. The micro-enterprise owners believed that as long as the bank provides good services, a good income is being generated through them with the security factor taken into consideration. This study's findings could provide important directions for the development of a holistic framework to explain the formation and structure of micro-enterprise owners’ loyalty towards banking and financial services industries.

Bank Monitoring: Evidence from Syndicated Loans

The rise in popularity of syndicated lending raises questions about the incentives of banks to actively monitor borrowers. We empirically investigate these incentives using a novel dataset that includes the frequency with which banks monitor borrowers' financial condition and the collateral underlying syndicated bank loans. We find that banks monitor frequently with approximately 50% of loans being monitored at least on a monthly basis. Monitoring frequency is increasing in the lead arranger's loan share for private borrowers and the lead bank's reputation for public borrowers. These results are consistent with lender reputation mitigating moral hazard only to the extent that monitoring effort is verifiable. Lead banks also monitor more when monitoring is likely to produce new information and when information is more valuable, such as when borrower financial health deteriorates. Overall, our results suggest that banks actively monitor the average syndicated loan in a manner consistent with theoretical predictions in the literature.

Investment Bank Reputation and IPO Qualifications

In this paper, we examines the influence of investment bank’s reputation and political connection on the IPO qualification of Chinese firm, The results show that firms which sponsored by prestigious investment banks more likely pass the regular’s screening process, the investment bank’s political connection have no significant impact on the IPO qualification. We further compared the investment bank’s customer characteristic, and find that the customers of prestigious investment bank are more large-scale, high growth companies, and more central enterprises, indicate that high reputation investment bank tend choose low risk and high growth prospective IPO companies in order to avoid damage to reputation.

Underwriting as Certification of Bank Bonds

Banks distribute corporate debt by selling their reputation as underwriters to investors in debt markets. Nevertheless, a little explored area is the certification role of banks in placing their own bond debt. In particular, the bank-specific alternative choice of self-underwriting versus the exclusive use of third-party underwriting. Moreover, bank reputation was damaged during the recent crisis and the question of how banks certify their bond debt in such times remains an unresolved issue. We use a sample of bank bond own deals from 24 European countries, that permits a unique identification of banks’ underwriting choices: self-underwriting takes place almost entirely in domestic bond markets and it is undertaken by banks in the less reputable underwriting group. Third-party underwriting takes place mostly in Euro-bond markets where both reputable and less reputable underwriters operate. We show that strong underwriter reputation brings significant differences in yield and fee benefits and that these differences are actually larger in crisis years. Over the 2003-2013 period we find that issuer banks could save Eur 11 million per deal when that transaction was placed by a reputable underwriter, while they lost Eur 9 million per deal when the deal was managed by an underwriter in a less reputable group. Despite those benefits, banks may alternatively decide to self-issue if they have disincentives to share information on their financial status with competitors.

Impact of Corporate Social Responsibility on Corporate Governance and Reputation in Nepalese Commercial Banks

Corporate social responsibility (CSR) has been the subject of considerable investigation and debate for many years among both scholars and practitioners. Corporate social responsibility (CSR), corporate governance (CG) and corporate reputation (CR) influence the development of firms mostly. In this paper, a model of dynamic relations among CSR, corporate governance and corporate reputation was constructed in the theoretical framework of stakeholder. The model reflects that corporate reputation is formed in the dynamic relations between firms and corporate stakeholders, and corporate reputation is the synthesized result of corporate governance and CSR. For the purpose of testing the fitness of the model in Nepal, an empirical study is conducted on the relationship between corporate governance, CSR and corporate reputation. The result shows that good CSR has positive effect on banks reputation. It also indicates that CG and CR don't have significant relationship, but coefficient of the intervariable (CG*CSR) is significant and positive, which reflects that good corporate governance alone can't bring good reputation, but it can't when it comes with good social responsibility.The Journal of Development and Administrative Studies, Vol. 22, No. 1-2, pp. 27-36, 2014

Does institutional reform improve the impact of investment bank reputation on the long-term stock performance of initial public offerings?

This study examines the impact of investment bank (IB) reputation on the long-term stock price performance of Chinese initial public offerings (IPOs) over the period 1993 to 2010. For comparison purposes, the whole sample period is separated into two sub-periods by the 2001 IPO allocation system reform: the quota system period from January 1st, 1993 to April 22nd, 2001 (hereafter, the pre-reform period) and the approval system period from April 23rd, 2001 to December 31st, 2010 (hereafter, the post-reform period). Using two time-varying proxies for IB reputation, we find no impact of IB reputation on the three-year buy-and-hold abnormal returns (BHARs) during the pre-reform period, but a significantly positive impact during the post-reform period. Our results are robust to various alternative methodological approaches in controlling for the problem of endogeneity and the cross-sectional correlations in abnormal returns.

Customer Loyalty in Internet Banking

In the era of challenges and cut throat competition in banking sector it has become inevitable for the banks to devise defensive strategies to retain their customers and build customer loyalty. The main aim of this study is to examine the factors affecting customer loyalty in online banks. To achieve this purpose, a detailed review of relevant literature was made and seven constructs were identified for the study. A survey was conducted and data was collected with a structured questionnaire. Pre analysis data screening was done to ensure that the study is fit for further statistical analysis. Multiple regression analysis was performed to investigate the relationship of constructs on customer loyalty. Results of the analysis identified customer satisfaction; bank's reputation trust and habit were having significant influence on customer loyalty. Among the four factors, reputation of the bank and its corporate image is found to be more influential. Based on the findings, the implications and suggestions are made.

Determinants of Deposit Money Banks' Profitability in Nigeria

Determinants of Deposit Money Banks' Profitability in Nigeria

How Occupy Wall Street Influenced the Reputation of Banks with the Media

This study reports on two surveys with business journalists to identify the impact the Occupy Wall Street movement had on the reputation of banks. The first survey was conducted before the movement and the second was after. Perceptions after the Occupy Wall Street movement, that the media caused the loss of trust in banks decreased but beliefs that the media were the main barrier in repairing the reputation of the US banking industry increased. While business journalists felt less strongly after the movement, greed remained their main belief of what caused the loss of trust and that transparent communication is needed to repair the reputation of the US banking industry. The Occupy Wall Street movement appears to have also influenced their thoughts on how many banks were involved in the financial crisis, how long it will take to repair it, and the impact of financial reforms.

The Role of Investment Banking in M&A Operations: Empiric Pre and Post Lehman Evidence

The role of investment banks in M&A operations is analyzed on the basis of empiric evidence. In particular, to point out the variations in the impact of the certification effect which can be ascribed to investment banks, the relationship between the value created for the shareholders in companies involved in special underwriting operations and the reputation of the banks appointed to act as advisors is examined. The analysis, which uses an original measuring system in order to assess and classify the reputation variable, focuses on transactions that have taken place between listed companies in two time frames, symmetrical to each other, specifically pre and post the Lehman Brothers bankruptcy. The total sample is composed of 229 transactions, divided into 161 and 68 observations, respectively pre and post Lehman. The result is that in the post Lehman period, unlike the preceding time frame, for which no significant empiric evidence is found, the wealth of the shareholders (of both targets and acquirers) is significantly influenced by the reputation of the investment banks which have acted as advisors. This indicates that, subsequent to the shock of the Lehman Brothers collapse, the certifying effect of the investment banks takes on an important role in the shareholders' choice.

The Corporate Reputation of Islamic Banks: A Measurement Scale

During the last few years, the concept of corporate reputation has received considerable attention from marketing academics and practitioners alike. This is not surprising in view of the concept enormous practical implications. Suffice it to say, that the market value of a modern company lies mainly in its intangibles assets. Corporate reputation embodies all of the intangible capital that a company may have. The current study describes an attempt to develop and validate a scale to measure the corporate reputation of Islamic banks. The operational definition of the construct draws mainly on its attitudinal and perceptual nature. To tap into the different dimensions of the target domain, an initial item pool of 42 statements was developed following a comprehensive review of related literature. Successive stages of revision, editing, rewriting and face and content validity reduced the initial item pool to 29 statements. These were put to a convenient sample of 150 bank customers in the Kingdom of Bahrain. The resultant data set was factor analyzed. A Principal Component Analysis extraction method suggested a two factor solution. Between them,the two factors explained 55% of the total variance in the factor model. Items that loaded poorly on any of the two components were eliminated from the analysis. 17 items made up the final version of the scale. The Cronbach alpha coefficients revealed that the two subscales and the overall scale were reliable. The inter-item correlation coefficients, the variance extracted, the factor communalities, and the Cronbach alpha coefficients do all point to the validity of the construct: that all the items in the scale seem to measure an underlying theme, in this case the corporate reputation of Islamic banks.

A Complaint Mechanism for the Equator Principles—And Why Equator Members Should Urgently Want It

This paper argues that the Equator Principles, in their 11th year of existence, face a severe credibility problem and hence do little to improve member bank reputation. Overcoming this credibility problem is a challenge because it requires addressing the collective action or free-rider problem at the associational level, the principal–agent or compliance problem in the relations between Equator Principles Financial Institutions (EPFIs) and their clients, and a ‘third-party impact problem’ implicating project sponsors and project-affected communities. The paper suggests that an EP complaint mechanism would be an effective and cost-efficient solution to address all three problems simultaneously. In comparison to other private regulatory initiatives that already rely on complaint mechanisms, the paper will show that there are no feasibility hurdles to installing such a mechanism, aside from a lack of political will on the part of the EPFIs. It will also outline how the mechanism should be designed in order to most effectively address Equator's credibility problem.

An Empirical Study on the Determinants of Banks Selection in Ghana: Application of Principal Factor Analysis on Senior High School Teachers in the Kumasi metropolis

The paper presents an empirical study of selection criteria used by teachers in the various Senior High Schools in Ghana towards the selection of their banks. The study employed a descriptive survey research design which helped in relating a large number of teachers and comparing their opinions. The utilization of quantitative and qualitative research methods were adopted using responses given by 250 Senior High School teachers in the Kumasi metropolis. A non-probability convenience sampling technique was used. Primary and secondary data sources were also used. The data was collected using self-administered questionnaires while projective technique was also adopted in getting instinctive information from the teachers. The data was then coded, cleaned, analyzed and interpreted with the help of Statistical Package for Social Scientists (SPSS) – where factor analysis and regression model were used to analyze the data. The study revealed that six factors influenced the choice of bank among Senior High School teachers in the Kumasi metropolis. The factors were: Interest on savings, the reputation of the bank, the security of the bank, Easy to obtain loans, the longevity of the bank as well as a low service charge on account. The study established that teachers in the Kumasi metropolis considered reputation as well as the long existence of banks as their determinant factors in selecting Banks. The study recommended for Bank management to be aware that, bank selection determinants differ from one segment to another even in the teaching profession - from the Junior High School level teachers to the University lecturers. The study also recommended for a frequent research on the needs of teachers towards the selection of their banks – since the revelation had shown that teachers are very sensitive when it comes to Bank selection. The findings of the research have several scientific and managerial implications that would add to the existing literature as well as future research on managerial practices in attracting teachers to banks.