Bank Report Research Articles

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

Impact of Corporate Social Responsibility and Profitability in Financial Performance Moderated by Amanah Concept

Purpose – This study aims to fill a gap in the literature by examining the impact of CSR, measured through Zakat, and the effect of profitability on the financial performance of companies in Saudi Arabia, as well as the role of the concept of Amanah as a moderating variable. Methodology/approach – This study employs a quantitative method using secondary data from financial reports of banks listed on Tadawul from 2019 to 2023. The sample was selected based on the consistency of reports and the absence of losses in the last three years. Data analysis was conducted through multiple linear regression with panel data using Eviews version 11. Findings – The research findings indicate that CSR and the concept of Amanah have a significant impact on the financial performance of Islamic banks, whereas profitability does not have a significant effect. The concept of Amanah also acts as a moderating variable that strengthens the influence of CSR and profitability on financial performance. Novelty/value – This study makes a significant contribution by demonstrating that the concept of Amanah plays a key role in enhancing the financial performance of Islamic banks, alongside CSR. The findings support the Sharia Enterprise theory and introduce a new approach to measuring the performance of Islamic banks by placing greater emphasis on the concept of Amanah.

Analyzing the Risk-Return Tradeoff in Commercial Banks' Common Stock: A Case Study of Nepalese Banks

This study investigates the risk-return tradeoff in the common stock of Nepalese commercial banks over a five-year period from 2018/19 to 2022/23. By analyzing financial data from four prominent banks listed on the Nepal Stock Exchange (NEPSE) i.e. Global IME Bank Limited (GBIME), Nepal Investment Mega Bank (NIMB), Nabil Bank Limited (NABIL), and Kumari Bank Limited (KBL). The study depends on the closing prices of these four commercial banks, which were generously provided through the NEPSE Index and annual general meeting (AGM) reports of each respective bank. The research aims to provide a comprehensive understanding of their risk profiles and expected returns using the Capital Asset Pricing Model (CAPM). The study employs descriptive statistics like mean, standard deviation, coefficient of variation, and maximum/minimum returns. The findings reveal significant variations in performance and risk levels: GBIME and KBL show positive average returns with high volatility, whereas NIMB and NABIL exhibit negative average returns, indicating losses. GBIME’s stock is slightly less volatile than the market, while NIMB’s low beta suggests it is suitable for conservative investors. NABIL’s and KBL’s higher betas indicate more volatility, appealing to high-risk tolerant investors. The study underscores the importance of portfolio diversification and continuous monitoring of market conditions for informed investment decisions. These insights are valuable for investors, financial regulators, and policymakers in developing effective risk management strategies and enhancing financial stability in Nepal's banking sector.

Foreign Reserve and Economic Growth: A Comparative Analysis of Nigeria and Ghana

This paper examined the comparative analysis of the effect of foreign exchange reserve on the economic growth of Nigeria and Ghana. The foreign reserve was proxy by country external reserve, while economic growth was equally proxy by Gross Domestic Product. Data extracted for the sampled period were analysed using descriptive and inferential statistics. An ex-post facto research design was adopted for the study. Data were obtained for sixty-four (64) years (1960-2023) from the reports of World Bank for Ghana and Nigeria. Regression test for the hypothesis was set at a significance level of 5%. The findings showed that external reserve was jointly positive and significant on the economic growth of Nigeria and Ghana (p-value = 0.0000; <0.05) and (p-value = 0.0000; <0.05) respectively. The findings also showed that Ghana had a stronger positive relationship between external reserve and economic development. The Adjusted R-Square of Ghana and Nigeria stood at 0.95 and 0.77 respectively. This implied that 5% and 23% are factors outside foreign reserve that are responsible for economic growth. This study recommends that the leaders of the two countries under consideration should pay more attention to developmental policy that will lead to accumulation of reserve, since it enhanced economic growth and currency stability of the two countries.

M Score Performance Measure for Islamic Banks in Malaysia and Indonesia

Performance measurement is vital to examine the performance of any institution. Due to the different nature of business operations, processes, and activities in Islamic banks, they have to be measured by a more focused instrument to reflect the Shariah compliance parts and their business nature compared to the conventional banks. Hence, M Score which has been developed by Abdul Rahim, Abdul Rahman and Syed AlHabshi (2016) has been adopted in this study. The findings from the computation will indicate which country gains the higher M Score in performance, and this can be used as a benchmarking exercise. This research aims to analyse and compare the M Score performance of Islamic banks in Malaysia and Indonesia. The content analysis via Annual Reports of Islamic banks has been used for this study. The sampling technique used is purposive sampling. The research was conducted on Islamic banks in Malaysia and Indonesia over a period of two years, from 2020-2021. This comparative research is expected to be an evaluation tool for Malaysian Islamic banks, helping them improve their performance to catch up with their counterparts in Indonesia. Thus, the purpose of this research proposal is to analyse and compare the effect of the soundness of Islamic banks based on the M Score performance of Islamic banks in Malaysia and Indonesia. The results of this study indicate that Islamic banks in Indonesia have a higher M Score ranking than those in Malaysia. There are significant differences in the performance of Islamic banks based on the Need Fulfilment and Equitable Distribution (NFED), Economic Growth (EG), and Economic Stability (ES) in Malaysia and Indonesia.

Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general.

CSR reporting practices of Islamic and conventional banks based on ownership differences

Purpose This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected. Design/methodology/approach This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score. Findings The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks. Social implications The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures. Originality/value The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.

Exploring the Impact of Remittance and Economic Growth on Inflation

This study investigates the influence of remittance income and economic growth on the inflation rate in South Asian Association for Regional Corporation (SAARC) countries. Remittance inflows have a double effect on the economy’s inflation rate: firstly, it increases consumer spending capacity, driving up demand for goods and services, which can lead to higher prices; secondly the influx of foreign currency can cause local currency appreciation, raising import costs and contributing to inflation. While previous studies have focused primarily on how inflation hinders economic growth, this study seeks to understand how economic growth causes inflation from the other side. Economic growth boosts consumer and business spending, increasing demand for goods and services, which can increase prices. Furthermore, higher demand for resources and labor can raise production costs, further contributing to inflation. The correlation between remittance income and inflation has been extensively documented, but the impact of economic growth on inflation remains to be determined. The study is based on descriptive and exploratory research design and driven by a positivist research philosophy. The present study is based on secondary data collected from World Bank reports and the countries’ economic surveys. This study uses an unbalanced panel dataset of 272 data points from eight member countries of SAARC. Basic econometric techniques such as covariance analysis, panel unit root testing, panel autoregressive distributed lag model, and scaled coefficient analysis are employed. The remittance income is only statistically significant at the 10 percent significance level. A one percent increase in remittance income leads to a 0.284 percent increase in inflation over the long run. The growth rate of gross domestic product plays a crucial role in setting inflation. One percent rise in gross domestic product growth leads to a 0.3405 percent increase in inflation in the long term. The error correction term exhibits a negative and statistically significant relationship. The coefficient size suggested that around 65.14 percent of the disequilibrium was rectified in each cycle. The current year’s lagged gross domestic product growth negatively and statistically significantly impacts economic growth. One percent rise in gross domestic product growth led to 0.3308 percent fall in inflation in the short term across SAARC countries. The results indicate that remittance income has a minimal long-term effect on inflation in SAARC nations, whereas gross domestic product growth substantially impacts inflation. Policymakers should prioritize promoting sustainable economic growth to mitigate inflationary pressures effectively.

AN ANALYSIS OF SOCIOECONOMIC INEQUALITIES AMONG LOW-INCOME INDIVIDUALS WITH A SPECIFIC FOCUS ON THE COMPLIANCE INDEX OF SHARIAH GENERAL BANKS IN INDONESIA

The aim of this study is to investigate the correlation between the focus on the overall compliance index of sharia banks in Indonesia, particularly the profitability role index, sharia supervisory boards, and independent commissioners, and reducing social disparity among low-income groups. This study specifically examines the sharia commercial banks in Indonesia, and the samples were chosen using the purposive sampling method. The data collected comprises secondary data, specifically the annual reports of sharia commercial banks from 2017 to 2021. The data underwent the usual assumption test for analysis. Applying the multiple linear regression method for hypothesis testing. The SPSS software is employed for data processing. The results of this study suggest that the presence of an audit committee has a significant and positive effect on the sharia compliance index. The variables of liquidity, profitability, leverage, and sharia supervisory board have a negative and statistically insignificant effect on the sharia compliance index. The independent commissioner variable has a favourable effect on the sharia compliance index, although this effect is statistically insignificant. Therefore, it may be inferred that the profitability index, Sharia Supervisory Board, and Independent Commissioners, which serve as benchmarks for guaranteeing Sharia compliance in Indonesian Sharia banks, are not successful in alleviating the prevailing social inequality in Indonesia.

THE IMPACT OF PORTFOLIO DIVERSIFICATION ON THE PROFITABILITY OF LICENSED COMMERCIAL BANKS IN SRI LANKA

Licensed commercial banks are essential for ensuring the stability of any country's financial system. According to the 2022 annual report of the Central Bank of Sri Lanka (CBSL), licensed commercial banks collectively held fifty-five percent of total assets. Portfolio diversification stands as a fundamental strategy for mitigating risk and enhancing returns in the banking sector. Thus, this study aims to investigate the relationship between portfolio diversification and profitability within the realm of licensed commercial banks operating in Sri Lanka. The researcher set out to achieve two research objectives by examining the correlation between the diversification index and profitability. Return on Asset and Return on Equity were used as measurement criterion of profitability. The dependent variable, portfolio diversification, was measured using a diversification index derived from the Herfindahl-Hirschman Index (HHI). A sample of ten listed banks was selected out of twenty-four licensed commercial banks. Secondary data were collected from the annual reports of ten listed commercial banks for the period of 2012 – 2022. A fixed effect model was selected among panel data regression models after conducting the F test, LM test, and Hausman test. The study's findings indicate that the diversification index has an insignificant negative impact on ROA and a significant negative impact on ROE. The equity ratio of banks has a negative, insignificant impact on both ROA and ROE. Bank size has a significant and negative impact on both ROA and ROE. Therefore, the findings of the study demonstrate that diversification negatively impacts both ROA and ROE. The findings from this study hold significant implications for both banking institutions and policymakers in Sri Lanka. Understanding the relationship between portfolio diversification and profitability can inform strategic decision-making within banks, guiding them towards more effective risk management practices and resource allocation strategies. In essence, this study contributes to the existing literature by offering empirical evidence and theoretical insights into the impact of portfolio diversification on the profitability of licensed commercial banks in Sri Lanka.

Comparative Financial Performance Analysis of Neo Banks and Conventional Banks in India (2019-2023): An Empirical Study

Aim: This study will compare India's Neo Banking and Conventional Banking systems, focusing on their financial performance indicators from 2019 to 2023. The objective is to understand the differences in economic performance between these two banking systems and identify factors contributing to their net income. Methodology: The study adopts a quantitative research approach with a descriptive research design. It utilises secondary data from the Prowess Database and audited financial reports of Neo and Conventional banks registered with the Reserve Bank of India (RBI). Panel regression analysis is employed to analyse the data, considering both Fixed Effects (FE) and Random Effects (RE) models to assess the impact of various financial indicators on net income. Results: The study reveals significant differences in financial performance, using Fixed Effects (FE) and Random Effects (RE) models for panel regression analysis. Return on Assets (ROA) positively impacts net income, highlighting efficient asset utilization's importance, while Net Profit Margin (NPM) negatively impacts net income, indicating potential inefficiencies. The Asset Turnover Ratio positively affects net income, emphasizing operational efficiency. Gross Profit Margin (GPM) and Gross Profit show varying impacts, with the FE model preferred for reliability. The results suggest Neo Banks, despite operational efficiency and innovation, struggle with profitability, whereas Conventional Banks, though more stable, need operational improvements and digital adoption. This study highlights the dynamic Indian banking sector and the need for both banking models to adapt to a balanced financial ecosystem. Further research is recommended to explore specific operational dynamics and market influences. Conclusion: The analysis reveals that while Neo Banks offer operational efficiency and innovative services, they face challenges in maintaining profitability. Conversely, Conventional Banks, while demonstrating stability, need to enhance operational efficiency and embrace digital innovation to remain competitive. The study underscores the evolving banking sector in India and the necessity for both Neo and Conventional Banks to adapt to technological advancements and changing consumer preferences. Emphasizing the importance of efficient asset utilization and operational performance, the findings suggest that a balanced approach integrating innovation and stability is crucial for a sustainable financial ecosystem. Further research should delve into specific operational aspects and market dynamics to deepen the understanding of these trends.

Financing trends of trade and logistics sector in developing countries:the case of Azerbaijan

Object: The banking sector of Azerbaijan plays an important role in the stimulation of the economic development with a special accent to the sphere of the trade and logistics. This study touches on how the area augments economic growth largely through the adoption of the smart governmental interventions with the integration of digital advancements. Methods: Applying the mixed-method approach, which entails both qualitative and quantitative research techniques, and taking data ranging from 2010 to 2022 from State Statistical Committee of Azerbaijan, World Bank and other financial reports and documents, the study set out to reveal main financial flows in sectors of overall economy of Azerbaijan. It tests the banking sector's finiding through the calculation of amount loaned to GDP, prudential lending with the ability to identify risks and thus contribute to the stability of the financial system and the subsidization of some financial services, especially in the rural areas. Findings: The evaluation follows this up with an assessment of the performance of the private sector financing in this context, and how once substantial credit programs can be used in the betterment of the transport and logistics sector, among other things. Conclusions: The research which merges macroeconomic factors with sector-specific details puts the emphasis on more favourable financing mechanisms to catalyse the exceptional growth in this township and suggests that we look constantly for pathways through complexities of economic development, logistics, and complexities.

The confidence of the whole country: Standard Bank reports on economic conditions in southern Africa 1865-1902

The confidence of the whole country: Standard Bank reports on economic conditions in southern Africa 1865-1902

Deposit Mobilization and Profitability in Nepalese Commercial Banks

A commercial bank must be able to receive deposits at reasonable rates to have funds available to lend to its customers. Therefore, if all other variables stay the same, a bank that can attract more deposits will be able to make more profit. The main objective of this research is to show the impact of deposit mobilization on the profitability of Nepalese commercial banks. The secondary panel data from 2015 to 2023 were collected from the annual report of commercial banks using the purposive sampling method. Casual comparative research design has been used to analyze and interpret the data. The collected data were described and analyzed using Ms. Excel and SPSS version 25 software. The findings of the study revealed that there is a significant and positive effect of IRS and IOD on return on assets but inflation has a significant negative effect. Similarly, IRS and IOD have a significant and positive impact on return on assets. However, inflation has a significant negative effect. Interest rate spread and interest on deposits are the major elements of banks to maximize their profitability.

Overseas Capital Streams and Economic Growth Nexus: Pragmatic Insights from Nepal

The objective of the present research is to ascertain the impact of foreign capital inflows, including grants, loans, remittances, and income from tourism, on the economic growth of Nepal. This study utilizes secondary data acquired from several Nepalese economic surveys and World Bank reports. The data consists of 35 data points spanning from the fiscal years 1987/88 to 2021/22. The link between foreign capital inflows and GDP growth in Nepal is examined using fundamental statistical approaches like quantile regression, trace and Max-Eigen cointegration tests, and descriptive statistics. The results show that Nepal's grants, debt, foreign remittances, tourism earnings, and GDP growth co-integrate over the long term. Notably, 80.5 percent of Nepal's GDP growth fluctuation is accredited to foreign grants, loans, remittances, and tourism income. While foreign loans and grants are not statistically significant in and of themselves to measure GDP growth, foreign remittances and tourism income are. For every percentage increase in the median value of remittance and tourism income, the GDP grows by 0.251 and 0.816 percent, respectively. More revenue from tourism than from remittances goes towards Nepal's economic growth. Legislators can, therefore, enact suitable measures to encourage the expansion of the tourism industry

Penerapan Strategi Transformasi Digital Di lingkungan Manufaktur Pada Sistem Informasi Manajemen

This journal is based on For many years, the manufacturing industry has been one of the industries that contributes to the value of the Indonesian economy, with a stable growth rate. In fact, according to a 2017 World Bank report, Indonesia was able to rank highest in ASEAN for the contribution of the manufacturing sector to the world economy with a contribution of 20.5%, The method used in this writing uses a causality quantitative research method, especially using literature materials as a source of research data or also called (Library research).the results of this study conclude that digital transformation has become a necessity for manufacturing to be able to compete in the digital era. By adopting technologies such as IoT, robotics, analytics, and cloud computing, manufacturers can improve the efficiency, productivity, and quality of their products.

The Growth of the Cameroonian Public Sector: An Analysis from Adolph Wagner's Approach

Purpose: This article sheds light on the determining factors accountable for the growth of the Cameroonian public sector from Adolph Wagner's Perspective. Methodology: To realize the objective, data were obtained through documentary and secondary sources, such as the World Bank Reports and other relevant documents. Information obtained was contently analysed, while numeric information was presented in percentages and tables. Findings: Using Adolph Wagner's Approach, findings showed that the size of the Cameroon public service has grown in size due to political, economic and social determinants. Politically, it has increased due to political instability and voter maximization behaviours by politicians; economically, it is due to the demand for public and merit goods, the fight against unemployment, and the government's regulatory role in the economy. Socially, it is accounted for by increasing population growth and demand for social services. Unique Contribution to Theory, Practice and Policy: This article from the Theoretical Standpoint of Adolph Wagner's perspective has resolved that the size of the Cameroonian public service has increased in size over the years as a result of political and socio-economic undertones, which to a greater extent has not been efficient service delivery. It is from this perspective that it is highly recommended that, there is an urgent need for accountability and responsiveness to be imbibed into the Cameroon public to ensure efficient delivery of goods and services to the public.

RGEC-Based Comparative Study of Health Levels in Indonesia's Sharia Banks (2019-2023)

This research aims to analyze the comparative health ratings of Islamic banking using the RGEC method based on the regulations established by Otoritas Jasa Keuangan (OJK) No. 4/PJOK.03/2016 concerning the Assessment of Commercial Bank Health Levels. This study employs descriptive research with a quantitative approach. The data sources used include the annual reports and GCG reports of Islamic Banks from 2019 to 2023.The results of this study indicate that Islamic banks in Indonesia have achieved varied health ratings. Bank Aceh Syariah, Bank NTB Syariah, and BCA Syariah received the "very healthy" rating for their health assessment from 2019 to 2023. Meanwhile, Victoria Syariah received a "healthy" rating consistently over the five-year period. The other six Islamic banks showed varied results each year.

Modern practise of financing higher education: an analysis of the experience of OECD countries and the Republic of Kazakhstan

Relevance. The study examines higher education financing systems in OECD countries and Kazakhstan, analyzing the contributions of different funding sources. This is relevant as education funding impacts access, quality, and economic development. Purpose. The main goal of the study is to determine the share of participation of the state, the private sector and other entities in financing the higher education system in the OECD countries in comparison with the Republic of Kazakhstan. Methodology. The research used economic and statistical methods, comparative analysis, and expert evaluation. Data was gathered from OECD, World Bank, UNESCO, and Kazakhstan government reports and statistics. Results. The study found four main models of higher education financing among OECD countries, varying in tuition costs and student support. Most OECD countries spend over 1.5% of GDP on higher education, with the public sector as the main funder in European countries. Kazakhstan spends only 0.3% of GDP on higher education, with 70% of students self-funding their education. Conclusions. Kazakhstan's higher education financing system provides limited government support and low tuition fees, resembling the fourth OECD model. To improve competitiveness, Kazakhstan needs to increase investment in higher education and human capital development, expanding funding sources and mechanisms based on OECD country experiences. The current grant allocation system is not equitable for low-income students and needs reform. Keywords: higher education; state funding; private sector; state budget expenditures

Management of Derivative Financial Products within the Banking Activity

Abstract Current developments in the national financial markets, as well as in the international market, mark a period of great changes. As the process of globalization intensifies, the economic environment is marked by increasing volatility and uncertainty. Financial institutions, as links in the financial intermediation process, play a crucial role in directing capital flows to the areas where they are most productively used. This is also the case of derivative financial products, stock exchange and over the counter, which become elements found in the reports of commercial banks. In this context, this article wanted to identify, on the one hand, the causes that determined commercial banks to focus on activities with financial derivative products, going beyond the traditional sphere of banking operations, and on the other hand to explore ways in which products derivatives can be used in banking. Within the article, complex methods were used, both at the statistical level, materialized through the econometric model exposed, and at the theoretical level, of observation and analysis. An entire point of discussion is intended to x-ray the main derivatives, how they can be used and integrated into banking. Another goal was to deepen, at least theoretically, the consequences of using derivative financial products in banking on systemic risk and monetary policy. Also, the paper aimed to highlight the current conditions and prospects for increasing the use of derivative products in the Romanian banking system.