Bank Branches Research Articles

E-Banking: Opportunities and Challenges from Customer’s Perspective

Opportunities and Challenges of E-Banking were empirically discussed. A researcher conducted a field investigation to collect the responses from the target audience. In the Technology Era, E-Banking has started to dominate the entire world. The presence of E-Banking can be seen till the tail end of small vicinities. Villagers also use it as it stops them from visiting bank branches. This increases trust as banks use high-end software for their banking system. The study was conducted in different parts of Chennai City. 210 customers were met in different parts of Chennai City. The places of research investigation covered by the researcher are shopping malls, Banks, Colleges, Universities, Business Outlets, and Residential Areas. Furthermore, the researcher used snowball sampling in the research as he collected the references of friends, family members, and colleagues. Descriptive Research Design was used by the researcher.

Social responsibility and its reflection on enhancing banking marketing performance )Analytical study in some branches of commercial banks(

الغرض: يهدف البحث الى تحديد طبيعة علاقة التاثير والارتباط بين المتغير المستقل (المسؤولية الاجتماعية) والمتغير التابع (الاداء التسويقي) وذلك بتحليل اراء عينة من العاملين في بعض المصارف التجارية في محافظة النجف الاشرف . مجتمع وعينة البحث: يتمثل مجتمع البحث بالعاملين في القطاع المصرفي وتم اختيار عينة قصدية تتكون من (120) عاملا في المصارف المبحوثة يمثل معظمهم شاغلي المواقع الادارية العليا والوسطى في بعض فروع المصارف الحكومية المتمثلة بمصرف الرافدين والرشيد والمصرف العراقي للتجارة في محافظة النجف ،والاستبيانات الصالحة للتحليل كانت (107) استبانة. الاداة والاساليب الاحصائية المستخدمة في البحث : تم اعتماد استمارة الاستبيان كاداة لجمع البيانات من العينة المقصودة في المصارف التجارية المبحوثة ،كذلك تم استخدام مجموعة من الاساليب الاحصائية لتحليل البيانات المتحصل عليها بهدف التحقق من صحة الفرضيات ،وباستخدام برامج حاسوبية مثل (SPSS v.23) المساهمة العلمية : جاء البحث الحالي ليسد فجوة معرفية تمثلت بقلة الدراسات العربية والاجنبية التي تناولت العلاقة والتاثير بين متغيرات البحث في مخطط فرضي واحد ،واهمية هذه العلاقة في التميز والتفوق في المصارف عينة البحث . اهم الاستنتاجات: تمتلك المصارف المبحوثة برامج مسؤولية اجتماعية بدرجة متوسطة ،كما وتبين ان الاداء التسويقي المؤشر الاساسي الذي يسهم في استمرار عمل المصرف وبقاؤه في ظل بيئة غير مستقرة ،فالاداء التسويقي يبين للادارة ما اذا كانت اهداف المصرف تسير على وفق الشكل المخطط له .

Economic Empowerment: The Role of Digital Financial Inclusion in Boosting Gross National Income in Upper-Income Countries

The objective of this study is to examine the impact of the digital financial inclusion index on Gross National Income per Capita in upper-income countries. Using the Principal Components Analysis (PCA) method, the study has constructed a digital financial inclusion index with the data collected from the World Development Indicator for the years 2011–2021. Further, utilizing the Generalized Moments of Method (GMM) technique, the findings reveal a significant positive effect of the digital financial inclusion index on income levels, emphasizing the importance of inclusive financial systems for broader economic participation. Additionally, bank branches remain important, highlighting their complementary role alongside digital services. Moreover, savings significantly contribute to economic growth and stability. Lastly, ATMs play a positively significant role in raising economic development and increasing income levels. Policymakers should prioritise initiatives that enhance digital financial inclusion, strengthen traditional banking infrastructure, and encourage savings. Additionally, investments in accessible banking services, such as ATMs, can significantly contribute to advancing economic development and increasing income levels.

The Influence of the Soviet Legal Model on the Law Directing the Establishment and Operation of Vietnam and China's Central Banks

The Soviet legal model significantly influenced the legal stance, operation and organization of central bank branches in China and Vietnam. According to research on the effect of the Soviet legal model on the organization and operations of the Central Bank of China and the Central Bank of Vietnam, the Soviet legal model assisted Vietnam and China in creating major legislative frameworks for the banking sector. However, the legal status of Russian banks has evolved in the direction of being more autonomous and efficient; at the same time, the People's Bank of China branch was also restructured to be more streamlined and efficient. These are the areas in which the State Bank of Vietnam has to improve in order to grow more successfully.

ANALYSIS OF THE INTEGRAL INDEX OF BANK CAPITALIZATION

Adequate capitalization is crucial for ensuring a bank’s financial stability and, by extension, the financial security of the entire country. This importance is especially evident in terms of both the quantity and quality of capital that a bank holds to cushion potential losses. Various indicators and ratios are employed to assess the level of bank capitalization, often subject to regulatory oversight. However, there is currently no standardized methodology for calculating and analyzing this indicator. This article aims to analyze the comprehensive index of bank capitalization levels. The calculation is based on statistical reports from 34 European countries spanning the years 2010 to 2020. The author explores the main direct and indirect factors influencing the level of bank capitalization. Direct indicators include return on equity, capital to assets ratio, and the ratio of regulatory capital to risk-weighted assets. Indirect factors include return on assets, the level of non-performing loans, the number of bank branches, the ratio of expenses to income of banks, and the ratio of bank deposits to GDP.

How does bank branch expansion affect ESG: Evidence from Chinese commercial banks

This research examines the relationship between bank branch expansion and ESG through the lens of geographical proximity. By utilizing panel data from Chinese listed firms during the 2010–2020 period, our results provide robust evidence that bank branch expansion promotes firms to fulfill ESG. Through increased bank competition and reduced distance between banks and enterprises, bank branch expansion contributes to ESG by strengthening financial support and optimizing informational efficiency. Additional analyses reveal that bank branch expansion enhances ESG in firms with financial backgrounds on boards, state-owned enterprises, firms with higher digital transformation and located in a superior legal environment. Overall, these findings reveal the influence of bank branch expansion on the non-financial behavior of firms and provide new empirical evidence for exploring the motivation for ESG.

Exploration on the Transformation of Retail Finance Marketing from “Sitting Business” to “Traveling Business” in Commercial Banks —Take the “Pop-up Shop” Model of C Bank Pedestrian Street as an Example

“Sitting business” and “traveling business” are two commonly used modes in marketing practice. “Sitting business” refers to waiting for customers to come to the door, is a kind of signboard and business name to attract customers of the marketing model, such as the commercial street store model, its business characteristics and competitiveness are mainly reflected in the attractiveness of products and the quality of service in the hall. “Merchant” refers to proactive marketing customers, and now refers more to product promotion and branding based on planning and packaging, as well as marketing personnel to communicate and interact with customers outside the business premises to expand product influence and market share. It is generally believed that sitting merchants are a conventional, traditional and inefficient marketing model compared to merchants. In the operation of modern enterprises, due to the increasingly fierce market competition, the transformation from “sitting business” to “traveling business” has become the consensus of business managers, and the awareness and ability of business are gradually becoming the core competitiveness of modern enterprise marketing.The operation mode of traditional bank branches is more of a passive waiting for customers to come to the door and accept the business needs of customers, reflecting the concept of “sitting in business”. With the sudden rise of Internet finance, which has had a huge impact on traditional banking business, the banking industry has realized that there may be a “last mile” shortcoming in physical outlets in financial services, and narrowing the distance between bank outlets and customers is more about “going out”, such as developing community banks, carrying out door-to-door marketing, expanding business districts, etc., mining customer needs outside bank outlets, building “scenario-based” finance, and constantly trying to change the business model from “sitting business” to “ traveling business”.

Risking or de-risking? The effect of banking competition on large state-owned banks and small and medium-sized enterprise lending: Evidence from China

This study examines the effect of the expansion of small and medium-sized bank branches on large state-owned banks in China based on bank branch-level financial data and detailed loan-level data from 2008 to 2015. We find that the expansion of small and medium-sized banks favorably impacts the operating income of large state-owned banks without intensifying bank risk-taking. Large state-owned banks, used to lack competition, expand their total lending scale to achieve more operating revenue by servicing more firms, especially small and medium-sized enterprises (SMEs). This promotes SMEs' access to finance, while also raising the operating costs of large state-owned banks. More importantly, the lending standards and loan quality of large state-owned banks do not deteriorate, implying that they do not employ risky lending tactics to deal with increased competition.

Bank competition and household informal credit

This study examines the relationship between bank competition and informal household credit. Using data from four rounds of the China Household Finance Survey (CHFS), we find that increased competition among banks significantly reduces households' use of informal credit. To establish causality, we create a quasi-natural experiment based on the relaxation policy for city commercial bank branch expansion and obtain consistent results. We further uncover two mechanisms through which bank competition affects informal credit use: reducing interest rates on formal loans and improving financial literacy among households. Moreover, the heterogeneous analysis shows that higher-income and asset-rich households, as well as those residing in urban areas, are more negatively affected by bank competition in terms of informal credit access, whereas its influence on informal credit in agricultural production and medical expenses for households is not statistically significant. Overall, the results imply that fostering moderate competition in the banking industry can diminish the reliance on informal credit markets and offer a more comprehensive understanding of the relationship between the banking sector and household credit.

Can online banking replace personal banking? A survey of Hungarian banking habits

AbstractOne of the important issues of banking today is the role bank branches and online banking solutions play in serving consumers. With the help of a representative Survey of 1,000 adults in Hungary conducted in 2022, we examine how well online and mobile banking solutions can provide a suitable alternative to bank branches. Based on our results, online banking solutions cannot fully replace personal banking in Hungary due to the customers' attitudes, as we can see that their use does not significantly affect the frequency of visits to the bank branch, and their usage rate does not increase with the distance from the bank branch. We also point out that for the Hungarian population the trend of bank branch closures may entail the risk of being left out of the formal financial system mostly for the older, digitally less receptive social strata living in small settlements and in a relatively worse financial situation.

The relationship between financial sector development and individual economic well-being in Mena region: Panel feasible generalized least squares between 2005 and 2022

This research explores the nexus between financial sector development and individual economic well-being in 29 countries in the MENA region using panel data models over the period 2005-2022, based on the R programming language. The key financial variables considered are bank branches per 100,000 adults (AI), liquid liabilities (OI), deposit assets (DI), stock market capitalization (DM), and market capitalization of listed national companies (CM). Furthermore, the study employs 9 panel data models to examine the interaction; these models include Pooled OLS, Fixed Effects models (with individual, time, and two-way effects) using different approaches (within and between), and Random Effects models. Specification tests suggest the importance of accounting for fixed effects and addressing heteroskedasticity in the analysis. To enhance the analysis, 3-Panel Feasible Generalized Least Squares models were adopted to address challenges encountered by the model. The PFGLS First-Difference individual effect model demonstrated higher explanatory power and statistical significance of coefficients explaining 97% of the data’s variability compared to the PFGLS Individual and Time Fixed Effects models, providing a more reliable framework for understanding the connection between financial indicators and individual economic well-being. The findings conclude the significant influence of financial fluctuations on the dynamics of individual economic well-being. It proposes that policymakers have to focus on promoting financial sector development to achieve sustainable economic growth and improve individual economic well-being.

The Effect of ICT on the Development of Bank Branches in the WAEMU Zone: An Application of Negative Binomial Regression

The main objective of this study is to analyze the effect of ICT on the number of bank branches in the WAEMU. Based on the total of eight (08) member countries of the union, from 1995 to 2022, it employs the negative binomial (BN) regression method for the estimations. The results of the study show that among the ICT variables selected, only mobile and fixed-line telephone subscriptions have a statistically significant and positive effect on the number of bank branches in the union. The Internet and the number of ATMs have no significant effect on the number of branches, although they remain negatively correlated with the number of bank branches. On the other hand, the number of banking institutions and the size of these banks encourage the opening of new bank branches.

Efficiency analysis in two‐stage data envelopment analysis with shared resources and undesirable outputs: an application in the banking sector

AbstractIn classic and traditional data envelopment analysis (DEA) models, the production process is considered as single stage process and the internal structures have been ignored. In many real‐world occasions, however, the processes have two‐ or multi‐stage structures with or without shared resources. Two‐stage DEA models deal with the calculation of the technical efficiency of a system, taking into consideration its internal structures. In this contribution, we consider a two‐stage production process in which both stages are fed by shared resources, and there are undesirable products from the second stage. In the model we will propose, an optimal split on shared resources is given. To demonstrate the applicability of the proposed approach, data on 40 bank branches in seven years 2014–2020 is presented. In our real application in the banking sector, we find out that the most important sources of inefficiency of bank branches are related to interest revenue and overdue debt (undesirable output). Moreover, we saw that almost all branches were inefficient in the second stage (sale and service section) in all the seven years of evaluation.

Bank competition and firm greenwashing: Evidence from China

This study investigates the effects of bank competition on firms’ greenwashing. Using Chinese commercial bank branches’ geographic location data, we reveal that increased competition reduces greenwashing among firms located near more bank branches. The study posits that rising competitive intensity may relieve financial constraints, which weakens firms’ inclination to engage in greenwashing. We combine 11,465 observations of Chinese A-share listed firms from 2011 to 2021, bank location data, and environmental, social, and corporate governance (ESG) performance. Our results demonstrate that the effects are stronger for large, financially constrained firms, and those more highly leveraged, with relevant implications for policymakers focused on the consequences of bank deregulation and firms’ ESG performance.

Экономические связи Саратова и Уфы на рубеже XIX–XX вв. (лесная торговля)

The article shows one of the main directions in economic contacts between Saratov and Ufa – timber trade in the second half of the XIX – early XX centuries. The main source was the reporting of the Ufa branch of the Volga-Kama Commercial Bank, one of the largest private banks of the Russian Empire, whose branches opened in Saratov in 1871, and in Ufa in 1873. The main feature of the Ufa forest trade in Saratov was the use of promissory notes due to the need to quickly sell goods before the end of navigation. The documentation of the Volga-Kama Bank contains information about specific Saratov entrepreneurs.

Financial Inclusion, Per Capita Income and Human Development: Evidence from African Countries

There is a growing consensus that financial inclusion is essential for economic growth and human development. Studies have shown that financial inclusion can lead to increased investment, productivity, and employment. It can also help to reduce poverty and inequality. A country’s prevailing macro-economic factors such as per capita is also thought to accelerate or slow down the effect of financial inclusion on human development. This study assessed the effect of per capita income on the relationship between financial inclusion and human development among African countries. To achieve the research objectives, the study employed a panel longitudinal research design that involved collecting secondary data for the period between 2011 and 2020 on an annual basis for each of the 54 African countries. Findings indicate that financial inclusion, measured by bank branches, ATMs, deposit accounts, and loan accounts, has a positive and significant effect on human development in African countries. Furthermore, per capita income was found to moderate the relationship between financial inclusion and human development. The study concludes that fostering financial inclusion and enhancing per capita income is crucial for promoting human development in African countries. The study emphasizes the need for policymakers to prioritize inclusive finance and implement targeted interventions to address the specific challenges and opportunities within each context.

Sustainable development goals: Attaining sustainable living through financial inclusion in Sub-Saharan Africa

This study examines the effect of financial inclusion on sustainable living in 20 sub-Saharan African countries using the panel Autoregressive Distributive Lag (ARDL) model. The findings indicate that FII, the numbers of borrowers, depositors, bank branches and automated teller machines exert a significant effect on GDP per capita in sub-Saharan Africa. The Pooled Mean Group (PMG) estimates further indicate that FII (which captured the combined effect of financial access and usage) exerts a negative effect on gross domestic product (GDP) per capita in sub-Saharan Africa (SSA). However, the results of the individual measures of financial inclusion, that is, the numbers of borrowers, depositors and banking penetration exert a positive effect on gross domestic product (GDP) per capita in the long run in sub-Saharan Africa. This portends that financial inclusion is a significant contributor that can improve sustainable living conditions in sub-Saharan Africa. Based on these, the study recommends the need to improve access to and usage of financial products and services through user-friendly and service-fluent financial technologies in sub-Saharan Africa. This will help increase the number of households, smallholder farmers and businesses to access the formal financial system to meet their reoccurring and precautionary funding needs in sub-Saharan African countries.

The Effect of Fund Transfer Pricing on Brazilian Bank Branch Performance

Financial institutions have implemented fund transfer pricing in response to demands from regulatory bodies to better manage their risk and as part of their cash-pooling strategies. For banks, implementing a fund transfer price causes a redistribution of income between the various bank branches depending upon the determined transfer price and the volume of resources demanded or offered by each branch. In this context, this study's objective is to examine the effect of the potential implementation of fund transfer pricing on the performance of Brazilian bank branches. This study examines and runs a linear regression of 21 years of monthly banking statistics (2000-2020), lists the most relevant factors contributing to interbranch transfer volume, and demonstrates how an interbranch transfer volume analysis determines the fund transfer price effect in the performance of bank branches. Contrary to the expectations of prior studies, the total volume of interbranch transfers between Brazilian bank branches for the period examined is not zero, which means that, on average, bank branches generate resources that are allocated to other parts of the bank that are not bank branches. This study finds evidence that branches short of funds may be financing their income with resources from branches with excess funds and that implementing funds transfer pricing does not have a null effect in Brazilian bank branches. On average, the branches' incomes increase. While implementing a price for the transfer of funds leads to an increase in the bank branches' average income, it is not necessarily the case that a greater number of bank branches will register an increase in their income. This evidence is important because it demonstrates that a bank's strategy regarding the supply or demand of interbranch resources should inform decisions on whether or not to implement a fund transfer pricing policy.

Financial outreach, total factor productivity and environmental sustainability in middle-income countries

We present evidence that technological advancement can attenuate the harmful effect of financial outreach on environmental sustainability among 58 Middle-Income countries for the period between 2004 and 2021 inclusively. We reached the conclusion after employing the two-step System General Method of Moment Estimation technique to deal with endogeneity due reverse causality. The findings indicate that factors like bank branches, ATMs, credit to the private sector, credit bureaus, and bank depositors have a negative influence on environmental sustainability. The study also highlights a favourable relationship between TFP and environmental sustainability. In the end, we found that TFP plays a crucial role in offsetting the adverse effects of financial outreach on the environmental sustainability. Based on the results, it is recommended that MICs assess their financial outreach activities to prevent compromising sustainability goals. Furthermore, promoting technological advancement is essential in achieving sustainability and mitigating the negative impacts of financial outreach on environmental sustainability.

Financial Inclusion For Inclusive Growth : An Empirical Study of India

Financial inclusion as a strategy has become a policy concern throughout the world, including India, and it is viewed as a transmission mechanism for poverty eradication and a way of attaining inclusive economic growth.The study attempted to explore the impact of financial inclusion on economic growth in India.The Data was extracted from secondary sources from websites of RBI and covered the period between 2013 to 2023 while the multiple regression analysis was used to test the hypothesis. Based on the empirical analysis, the study concluded that the number of ATM's and loan deposit ratios have a positive impact on GDP, whereas, no. Of newly opened villages and no.of opened bank branches don’t have any impact on GDP. As we can say that inclusive growth has become essential for long term growth and social harmony which can be fostered by technological development by skill development and giving them basic digital literacy and by reducing poverty. It is consequently advised that politicians and financial regulators should take the appropriate steps to guarantee that banks follow the various laws, regulations, and policies that regulate their operations. Regulators must ensure that all aspects of financial inclusion are geared at expanding economic activity in the country, which will contribute to inclusive economic growth.