Banks In Yemen Research Articles

The Impact of Organizational Climate on the Performance of Islamic Banks in Yemen: A Field Study

The Impact of Organizational Climate on the Performance of Islamic Banks in Yemen: A Field Study

The Impact of Decision Making on Crisis Management in the Private Banks in Yemen

This paper aimed to identify the impact of decision-making (Quality- Effectiveness- Acceptance) on crisis management (Signal detection- Preparation/prevention- Containment/Damage limitation- Recovery- Learning) in the private banks in Yemen. To achieve the objectives of the study, the quantitative approach was employed, utilizing both descriptive and analytical methods. The study population consisted of leaders from private banks in Yemen, specifically those in their main branches in the capital, Sana'a, holding the following administrative positions: General Manager, Assistant General Manager, Sector Manager, and Department Manager. Due to the small size of the study community, the comprehensive survey method was employed, and questionnaires served as the primary tool for data collection. A total of 239 questionnaires were distributed, and 219 valid questionnaires (92% response rate) were collected for analysis. Data were analyzed using appropriate statistical methods within the SPSS v26 software, and structural equation modeling (SEM) was applied using Amos v26. The paper concluded that there is a positive impact of decision-making on crisis management in the private banks in Yemen. The study presented a number of recommendations including paying attention to decision-making by considering its dimensions (Quality- Effectiveness- Acceptance), with particular emphasis on the quality of decision. This is crucial considering the influence of decision-making on all administrative operations and functions, especially given the diverse and numerous crises faced by banks in the unstable Yemeni environment. Keywords: Decision-making, Quality, Effectiveness, Acceptance, Crisis management

Impact of Strategic Leadership on Competitive Excellence: A Field Study of Banks in Yemen

This study aimed to identify the impact of strategic leadership on achieving competitive excellence at banks in Yemen. To achieve this, the descriptive, analytical method was adopted. In this study, the population was all leadership and supervisory staff members in the target banks which amounted to (1710) members, of which (313) members were selected as the study sample by the stratified sampling method. The questionnaire was used to collect data from the study participants. The data was coded, entered and processed by the SPSS 23. In addition, the (PLS- SEM) was used to test the study hierarchical model of two levels, using the program (Smart PLS 3) for structural equation modeling. The reflective model was used to analyze the first level, and the formative model for the second level. The study results revealed that the banks under study show great interest in achieving competitive excellence in all dimensions, as well as in practicing strategic leadership in all aspects. The results also showed that there is a direct, statistically significant effect of strategic leadership on achieving competitive excellence for the banks under study. The study recommended strengthening the practice of leadership, due to its impact on achieving competitive excellence in the banks under study, especially the dimensions of strategic and creative directions for their clear impact in achieving competitive excellence.

Developing the Balanced Scorecard to Assess Investment Risks in Islamic Banks: The Yemeni Environment as a Model

this research aims to provide a Proposal Approach to developing a balanced scorecard for the use of assessing investment risks in Islamic banks. The researchers focused on the risks that are unique to Islamic banks from traditional banks, represented by the risk of the rate of return, the displaced commercial risk, the Fiduciary risk, Al- shari’a non-compliance risk, and the risk of investment in capital. To achieve this, the researchers relied on applying the Proposal Approach for three Islamic banks in Yemen due to the availability of their data in the annual reports. The results showed that there is a deficiency in the assessment of investment risks in Islamic banks with regard to the risks the Islamic banks are unique for, such as risk of the rate of return , the displaced commercial risk, the Fiduciary risk, Al- shari’a non-compliance risk, and the risk of investment in capital, It focused its attention on common risks between Islamic and commercial banks, such as credit risks, market risks, liquidity risks, and operational risks. The results also showed an effective role for the balanced scorecard in assessing investment risks in Islamic banks, which enhances the role of risk management in controlling and monitoring of the investment risks and taking appropriate procedures to reduce these risks to the acceptable levels. Keywords: Investment Risks, Risk Assessment, Balanced Scorecard.

Non-Performing Loans Effects on Profitability and Lending Behavior of Commercial Banks: Evidence from Yemeni Commercial Banks Sector

This study aimed to examine the effects of non-performing loans on the profitability and lending behavior of commercial banks in Yemen. The study used a descriptive-analytical approach. The data of the study were obtained from the annual financial reports (2010 -2018) of 6 commercial banks operating in Yemen. A panel data model was used in this study. The independent variable of the study was non-performing loans as measured by non-performing loans to total loans and advances ratio (NPLS) while the dependent variables of the study were profitability (ROA and ROE) and lending behavior as measured by loans and advances growth (LAG) of the commercial banks in Yemen. To test the hypotheses of the study, regression analysis was used. The results of the study showed that there is a positive and significant effect of the non-performing loans ratio (NPLs) on the return on equity (ROE) of commercial banks in Yemen. Whereas the study found no effect of (NPLs) on the return on assets (ROA) and loans and advances growth (LAG) of commercial banks in Yemen.

The Impact of Strategic Orientation on Governance Principles Implementation in Banks Operating in Yemen

The study aimed to know the impact of five-dimensional strategic orientation, namely (vision, mission, values, goals, and strategic objectives) on implementing governance principles of (18) banks, which constitute all the banks in Yemen. The analytic descriptive method was followed and the whole survey sampling method was utilized. The respondents were (417) of the administrative leaders concerned with implementing the governance principles of bank. A number of conclusions were reached, notably that strategic orientation has a positive impact on the implementation of bank governance principles; the level of which varies according to the three dimensions (mission, vision and strategic objectives) with a greater impact than those of (values and goals). In addition, the implementation of the principles of governance of Yemeni banks is essential to contribute to the market success and growth for the development of Yemeni economy, and to achieve success in the financial and administrative performance in the banking business in the financial and administrative performance. In the light of the results, it is recommended to increase banks' interest in strategic orientation in all its dimensions, as it has a positive impact on the implementation of governance principles. Besides, the study recommends benefiting from experience exchange, knowledge transferential acquisition among senior, middle and supervisory management in the strategic field as well as implementing the governance principles in banks.

Credit Risk Minimizing: Analysis study of Islamic and conventional banks in Yemen

Purpose: The study aims to compare the credit risk minimization between Islamic and conventional banks in Yemen. Approach/Methodology/Design: This paper is limited to a homogeneous sample that includes the Islamic and conventional banks' coverage as they represent the most significant part of the Yemeni banking sector. Using a descriptive-analytical method, data has been collected by a questionnaire sent by post to each Islamic and conventional bank separately located in Yemen's capital city. Findings: The study concludes that credit risk is the most critical risk facing banks, and there is a significant difference in credit risk minimizing between Islamic. Originality/value: The result showed that the banks' most critical risks are credit risks, and there is a significant difference in credit risk minimisation between Islamic and conventional banks. Also, conventional banks possessed a credit risk minimizing system better than Islamic banks. Several recommendations identified where the Yemeni banks, whether Islamic or conventional, should use advanced methods to measure and analyze credit risks.

Islamic financial literacy and Islamic banks selection: an exploratory study using multiple correspondence analysis on banks' small business customers

PurposeAlthough Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.Design/methodology/approachThis study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.FindingsThe study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.Originality/valueThis is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.

The impact of firm-specific determinants, external factors and voluntary disclosure on capital structure: an empirical analysis of Islamic banks in Yemen

The impact of firm-specific determinants, external factors and voluntary disclosure on capital structure: an empirical analysis of Islamic banks in Yemen

The impact of firm-specific determinants, external factors and voluntary disclosure on capital structure: An empirical analysis of Islamic banks in Yemen

The impact of firm-specific determinants, external factors and voluntary disclosure on capital structure: An empirical analysis of Islamic banks in Yemen

قسم العلوم والمصرفية / جامعة أب / اليمن

This study aimed to estimate and analyze the productivity of a sample of commercial banks in Yemen, and the technical relationship and its substitution between the inputs on the one hand, and between them and the outputs on the other hand, with an indication of the efficiency of these banks, where the focus was placed on the two production functions with fixed substitution elasticity by approximating a potential, and a function Cobb-Duclas production based on balanced cross-sectional time-series data during the period (2000-2014); The number of views of the study was 90 views. The results of the study showed that the production function (Cobb-Duclas) is the most appropriate in estimating and explaining the behavior of the production process of the commercial banks in the study sample. and that the productive share of the capital component is greater than that of the labor component. Finally, the results showed that it is possible to replace and exchange between production elements.

THE IMPACT OF MOBILE BANKING APPLICATION ON CLIENT INTERACTION WITH YEMEN BANKS

Purpose: The purpose of the study is to analyse the impact of a mobile banking application on client interactions with banks in Yemen.
 Methodology: Data were collected using structured questionnaires. The Statistical Package for the Social Sciences (SPSS) was used for statistical analysis. Descriptive statistics and correlation values were used to report the results. This paper coverers the barriers and the factors that might affect badly on the performance of the mobile banking services in the Yemen banks industry.
 Findings: The findings of this study show that the traditional method of banks is changing; the entire system of banks has been changed from the traditional old way to the advanced way, and The traditional way is a paper-based banking provider while the new way is to use the technology as a method to enhance the performance of the banks such as the usage of mobile banking. In addition, the result of this paper is that there is a link between the user stratification and supportive access factor, and they are related to mobile banking. However, recently mobile banking is being adopted scientifically in recent years as most of the systems are become computerized and mobile phones are being in the market more than computers. Although, the emerging new technology to the banks' services market is exposed to barriers to the adoption of mobile banking services. The results of this current study will provide insights into the factors that affect the successful uptake of mobile banking services among clients of Yemeni banks.

Internal audit and financial performance of Yemeni commercial banks: Empirical evidence

This study seeks to verify the contribution of internal audit (IA), especially its role in improving financial performance in Yemeni commercial banks, with a specific focus on three factors, namely: the independence and objectives of IA, the quality of IA and the size of IA. This study reviews some existing literature on the contribution and role of IA in improving financial performance. It relies on available data from questionnaires. 90 questionnaires were distributed to nine commercial banks in Yemen (23 branches) working under the supervision of the Central Bank of Yemen; 81 questionnaires (90%) were regained and used in the process of analysis. To analyze the data, three analysis approaches were used, including description, correlation, and regression. The results showed that the IA has a significant impact on the overall performance of Yemeni commercial banks. Furthermore, the results showed that the auditors’ efficiencies, as well as their financial and accounting experiences, have a significant and positive impact on financial performance. It was revealed that the independence and objectivity of internal auditors are highly insignificant for financial performance. However, the size of IA and the frequency of the auditors’ meetings have a negative and significant effect on financial performance. This study provides some recommendations for improving the effectiveness of IA, which in turn will contribute to improving financial performance.

The Impact of the Standards Implementation of Internal Audit Attributes on the Internal Control System Effectiveness: A Field Study of Banks in Yemen

This study aimed to investigate the impact of the implementation of internal audit characteristics on the effectiveness of the internal control system in banks in Yemen. To achieve the objective of this study, a questionnaire was designed as a tool for collecting the data from the study community which consisted of (18) banks in Yemen, (14) of which, in Sana'a city, were taken as a sample. The sample consisted of 190 employees selected from the internal auditors, internal audit committees and finance managers. The SPSS was used to analyze 155 questionnaires that were valid for analysis. The results of the study revealed that there is a statistically significant positive impact on the implementation of all standards of internal audit characteristics on the effectiveness of the internal control system. In the light of the findings, the study recommends that the Yemeni banks should adopt procedures to enhance the effectiveness of the internal control system, including providing sufficient authority for the internal audit activity The team of internal audit should have absolute independence and continuous training in line with international standards and developments; in addition, conducting a periodic and continuous evaluation of the internal audit activity is recommended to enhance the effectiveness of the internal control system.

The Impact of the Standards Implementation of Internal Audit Attributes on the Internal Control System Effectiveness: A Field Study of Banks in Yemen

This study aimed to investigate the impact of the implementation of internal audit characteristics on the effectiveness of the internal control system in banks in Yemen. To achieve the objective of this study, a questionnaire was designed as a tool for collecting the data from the study community which consisted of (18) banks in Yemen, (14) of which, in Sana'a city, were taken as a sample. The sample consisted of 190 employees selected from the internal auditors, internal audit committees and finance managers. The SPSS was used to analyze 155 questionnaires that were valid for analysis. The results of the study revealed that there is a statistically significant positive impact on the implementation of all standards of internal audit characteristics on the effectiveness of the internal control system. In the light of the findings, the study recommends that the Yemeni banks should adopt procedures to enhance the effectiveness of the internal control system, including providing sufficient authority for the internal audit activity The team of internal audit should have absolute independence and continuous training in line with international standards and developments; in addition, conducting a periodic and continuous evaluation of the internal audit activity is recommended to enhance the effectiveness of the internal control system.

The Impact of Credit Risk Management on Islamic Banks in Yemen

The Impact of Credit Risk Management on Islamic Banks in Yemen

Do strategic planning dimensions and transformational leadership contribute to performance? Evidence from the banking sector

While some organizations realize the important role of strategic planning (SP) and leadership in influencing their business performance, it is unknown what SP dimensions and leadership style are required to improve the performance of banking institutions. The purpose of this study is to investigate the effects of transformational leadership (TL) style and SP dimensions (strategic planning level, implementation and barriers) on organizational performance. To this end, a self-administered questionnaire is distributed to a sample of 246 managerial employees from private banks in Yemen. The analysis with structural equation modelling using partial least squares indicates that TL style and SP dimensions significantly influence the performance of Yemeni banks. The results reveal that TL and SP dimensions are profoundly needed to enable Yemeni banks to propel to improved bank performance. The results draw several pertinent implications for decision makers that will help enhance the performance of the banking sector. Limitations from the findings and recommendations for further research are put forward.

IMPACT OF CREDIT RISK AND CAPITAL ADEQUACY ON ISLAMIC AND CONVENTIONAL BANKING HEDGING

This study aims to examine the relationship between credit risk and capital adequacy with the banking hedging of Islamic and conventional banks in Yemen. A sample of 4 conventional banks and 3 Islamic banks was used during (2012-2017). Using Pearson correlation and regression analysis, the study concludes that there is a statistically significant relationship between credit risk and banking hedging and a strong statistically significant relationship between capital adequacy and banking hedging. Based on the type of bank, results indicate a negative relationship but no statistical significance between conventional banks' credit risk and banking hedging. There is a statistically significant relationship between credit risk and banking hedging of Islamic banks. Capital adequacy positively interacts with the banking hedging in both banks.

Assessing the effectiveness of internal Sharīʿah audit structure and its practices in Islamic financial institutions: a case study of Islamic banks in Yemen

PurposeThis study aims to explore and assess the key Sharīʿah governance factors that may have an influence on the internal Sharīʿah audit structure and its practices in Islamic financial Institutions in Yemen, particularly in the Islamic banking sector.Design/methodology/approachTo do so, the study adopts a qualitative approach employing case study analysis, and both primary and secondary data are used to formulate the appropriate interview questions and achieve the objectives of the study.FindingsThe authors observed that the key factors that help in assessing the internal Sharīʿah audit structure and its practices are Sharīʿah auditor charter, audit plan and audit manual. In addition, the authors observed that, in general, internal Sharīʿah audit tends to be subjective in Yemeni banks because they depend on the internal Sharīʿah auditor’s qualifications and experience more than formal guidelines and regulations. This is because there are no detailed internal Sharīʿah audit plans or detailed audit manual. Moreover, the internal Sharīʿah auditor charter is not comprehensive in explaining the duties required of the internal Sharīʿah auditor, and it is mixed with the Sharīʿah Supervisory Board (SSB) duties. This means the internal Sharīʿah auditor lacks the critical tools that enable him to achieve the desired audit manual objectives where the effectiveness of internal Sharīʿah audit can be measured.Practical implicationsOne of the important implications of this study is providing very important guidance about enhancing the areas where shortfalls are found within the Sharīʿah governance process in the Yemeni banking system. This enhancement process of the internal factors of Sharīʿah governance can be achieved by increasing the awareness of the enhancing internal Sharīʿah audit structure as it reflects ultimately on the internal Sharīʿah auditor’s role and his practices.Originality/valueUnderstanding the effectiveness of internal Sharīʿah audit structure among internal auditors will improve the Sharīʿah audit framework standards, enhance the Sharīʿah knowledge among internal auditors and provide general guidelines to design audit programmes for Sharīʿah governance auditing process.

The Role of Transformational Leadership in Achieving Governance Principles in the Islamic Banks in Yemen

This study aimed to investigate the role of transformational leadership in achieving governance principles and to identify any statistical differences attributed to the bank variables, including bank name, size of deposits, number of branches, and year of incorporation. In order to achieve the study objectives, the analytical descriptive method was used; and since the population was small, the complete census method was used to select the sample. The data were collected by a questionnaire which was distributed to (143) employees; 132 of whom responded. After the data were processed and analyzed by the SPSS, the study results revealed that there was a statistically significant role for the transformational leadership dimensions in achieving the governance principles in Islamic banks in Yemen. The results showed that the individualized consideration recorded the highest role in achieving the governance principles, followed by the intellectual stimulation, and then by inspirational motivation. The last dimension, which had the lowest role in achieving the governance principles, was idealized impact. The results also revealed that there were statistically significant differences due to the bank variables (bank’s name, size of the deposits, number of branches), whereas there were no statistically significant differences due to the variable of (year of incorporation). The study recommended that banks should pay more attention to transformational leadership in terms of practice and training of their leaders as well as promoting the culture of practice, which would lead to improving the performance of banks.
 Keywords: Islamic banks, achieving governance principles, transformational leadership, Yemen.