Banking Business Research Articles

Research on Sustainable Development Strategy of Commercial Banks under the Background of Internet Finance

In recent years, with the continuous development of social economy and the official arrival of the Internet era, Internet technology has penetrated into all fields of social economy, greatly changed people's way of production and life, and brought unprecedented opportunities and challenges for the development and innovation of all walks of life. At present, under the background of deepening financial innovation, the operation mode of Internet finance has been recognized by the majority of customers, but it also has a certain impact on the business of commercial banks. The survival and development of commercial banks are facing many challenges, forcing commercial banks to constantly change their operation mode to meet the needs of competitive development. Based on this, this paper starts with the concept and characteristics of Internet finance, analyzes the impact of the Internet on the operation of commercial banks, https://fanyi.youdao.com/download 2 and uses SWOT model to analyze the advantages, disadvantages, opportunities and challenges of the transformation and development of commercial banks under the background of Internet finance, and finally puts forward the countermeasures for commercial banks to achieve sustainable development. The purpose of this paper is to promote the traditional commercial banks to find a way to coexist with Internet finance and provide customers with more distinctive financial services.

Analisa Rasio Keuangan Terhadap Kinerja Perusahaan Pada Industri Perbankan

The rapid development of the banking world and the high level of complexity of the banking business can affect the financial performance of a bank. Bank financial statements can be used as a measure of a bank's performance by analyzing financial statements through ratio analysis. to assess the financial performance and market share of banks using ratios including liquidity ratios, activity ratios, profitability ratios, leverage ratios and special ratios. The method used in this research is descriptive analysis through a quantitative approach to be the research method used. Quantitative data type, with data collection techniques through internal in the form of financial reports from PT Bank BNI, PT Bank BRI, PT Bank BCA, and PT Bank Mandiri obtained from the Indonesia Stock Exchange (IDX) website. This study shows that there are significant differences to assess the financial performance and market share of banks using ratios including liquidity ratios, activity ratios, profitability ratios, leverage ratios and special ratios..

Exploring the Connections: Ambidexterity, Digital Capabilities, Resilience, and Behavioral Innovation

ABSTRACT This study investigates the impact of pre-COVID-19 organizational ambidexterity, digital capabilities, and organizational resilience on firms’ innovation behavior post the second COVID-19 wave. Utilizing World Bank business surveys from 2019 and COVID follow-up surveys in 2020 and 2021 across 21 countries (8,928 firms), we employ partial least squares structural equation modeling and necessary condition analysis. Findings reveal that organizational ambidexterity and digital capabilities positively influence innovation. Organizational ambidexterity indirectly impacts innovation through digital capabilities. The study emphasizes the crucial role of pre-COVID-19 organizational ambidexterity in catalyzing innovation, highlighting its synergy with digital capabilities. Recognizing and cultivating organizational ambidexterity, along with enhancing digital capabilities, are recommended for firms seeking competitive advantages. The study underscores the importance of leaders fostering ambidexterity and knowledge-sharing practices to drive innovation.

Penerapan Service Quality Dalam Upaya Menjaga Citra Bank Terhadap Loyalitas Nasabah Di Bank Sumut Syariah Kcp Binjai

Service quality, known as service quality, is an important factor in the banking business as an effort to increase customer satisfaction. The higher the perceived level of service quality, the greater the increase in consumer satisfaction. This research aims to explain the implementation of service quality implemented by Bank Sumut Syariah Kcp Binjai in an effort to maintain its image to customers. This research method uses literature study by collecting and reviewing sources related to the title such as journals, books and others. A bank's image can be good in the eyes of the public if the services provided by the bank can satisfy its customers

The Antecedents and Outcomes of Micro-Enterprise Business Banking Customers’ Relationship Satisfaction

ABSTRACT Purpose The paper uses an ongoing business-to-business (B2B) relationship perspective to establish the interrelationships between trust, commitment, and relationship satisfaction (as relational constructs) and specific assets, formalization, and opportunism (as transaction cost variables) from a buyer’s perspective, framed within micro-enterprises in the business banking industry in South Africa. Methodology/Approach Data were collected via self-administered online questionnaires from 381 micro-enterprise customers of one of South Africa’s major banks. We first used confirmatory factor analysis (CFA) to assess the measurement model before structural equation modeling (SEM) was used to estimate the hypothesized relationships between the study constructs. The measurement and structural models fitted the data well. The research was approached using the dual theoretical lenses of relationship marketing and transaction cost theory to investigate relationship satisfaction from a buyer’s perspective. Findings The results support the notion that, in a B2B context, relationship satisfaction is an outcome of trust and commitment, with commitment being the stronger predictor. Relationship satisfaction, in turn, was positively related to both specific assets and formalization (the relationship with formalization being the strongest), and a negative relationship between relationship satisfaction and opportunism. Practical implications Since our results found commitment to be a stronger predictor of relationship satisfaction than trust (contrary to much previous research that found the opposite to be true), the paper concludes with several commitment-related suggestions for banks. Contribution Although much research exists on trust, commitment, and satisfaction, to our knowledge this study is the first using dual theoretical lenses (relationship marketing and transaction cost theory) to investigate relationship satisfaction from a buyer’s perspective among micro-enterprise customers in a banking context. The insights gained from our study therefore not only address this under-researched area (micro-enterprises), but also contribute toward expanding our understanding of forming (and maintaining) banking relationships with the customers of the smallest-sized businesses.

Эффективность корпоративного бизнеса коммерческого банка: особенности и проблемы

The article conducts a study on the corporate business of commercial banks, defines its concept, and presents definitions of corporate lending and corporate clients. The features of the latter are highlighted. Using SWOT analysis, the specifics of the corporate business of commercial banks, its strengths and weaknesses, as well as opportunities to improve efficiency in the financial sector are determined. Based on the research, ways to improve the effectiveness of corporate business within a single commercial bank are proposed.

СОВРЕМЕННЫЕ ТЕНДЕНЦИИ ПРИМЕНЕНИЯ ИННОВАЦИОННЫХ ТЕХНОЛОГИЙ В БАНКОВСКОМ БИЗНЕСЕ

The paper presents an analysis of the current trends in the development of banking activities and modern practice of innovative technologies application in the banking business. It is defined that nowadays the main consumers of banking services are representatives of the millennial generation, whose behavioral characteristics and preferences should be taken into account in practice. Authors show how innovative financial technologies influence the methods and approaches in the work of national banking organizations. Modern financial innovations are considered, which are gradually being tested, implemented and offered to clients by various Russian banks. It is emphasized that digital mortgage is one of the most popular banking products and the possibility of its digital registration has a beneficial effect on the development of that area in banking. Among the potential vectors for further development, an omnichannel approach to interaction with clients is highlighted. It aims to increase the efficiency of communication policy, service speed and the best possible satisfaction of the needs of users of financial products.

The Influence of E-service Quality and E-trust on BRI Mobile User Loyalty with Perceived Usefulness as a Mediator

Technological advances make it easier to carry out various activities. In the banking business, there is Mobile Banking innovation as a means of online banking services anywhere and anytime, such as BRI Mobile. However, in practice, the use of BRIMO has not yet been implemented by all BRI bank customers. This can be caused by several factors. The research aims to analyze the influence of E-Service Quality and E-Trust on Loyalty through Perceived Usefulness. The type of research is causal quantitative. The research population is Bank BRI Bandar Lampung customers. Determining the sample using purposive sampling with the criteria a) Savings customers who are registered and using the BRIMO application, b) Savings customers, especially Britama and Simpedes account holders who transact using the BRIMO application, and c) Customers coming from 14 BRI Branch Offices under the supervision of the BRI Regional Office Bandar Lampung so that the sample size was 100. Data collection used a questionnaire with SEM PLS as a data analysis technique. Research proves that E-Service Quality and E-Trust have a significant effect on Perceived Usefulness and Loyalty. Perceived Usefulness has a significant effect on Loyalty. Perceived Usefulness is able to mediate the relationship between E-Service Quality and E-Trust on loyalty

BUSINESS ARCHITECTURE OF THE BANKING SECTOR: CONTENT AND DETERMINING PARAMETERS OF FORMATION

Introduction. The banking sector is one of the most dynamic spheres of economic life. That is why the problem of forming an effective business architecture of the banking sector, which would ensure its financial stability and contribute to the economic development of the national economy, is important. The purpose of the article is to substantiate the content of business architecture, based on the specifics of the banking sector, and outline the fundamental factors of its formation. Results. The main markers determining the need to ensure the continuity of the banking sector are outlined. The components of the continuity management system of the banking sector are defined. The substantive difference between the concepts of "bank business model", "bank strategy" and "business architecture of the banking sector" is formulated according to the criterion approach. The scientific position on the classification of business models of banks is summarized. The author's vision of the two-level structuring of the bank's business model is presented. Conclusions. It is proven that the main requirements for the modern banking sector as a highly adaptive system are its openness and self-organization, purposefulness, emergency, integrity, reliability, flexibility and sustainability. The prerequisite for achieving the above is the optimal business architecture of the banking sector, which, in turn, is derived from the interaction of the business models of banks presented on the market. It is substantiated that in the conditions of the modern digital transformation of the economic space, it is important to comprehensively and multi-facetedly identify the business models of banks, which would take into account modern trends.

The Impact of Digital Payments on the Intermediary Business of Commercial Banks

The Impact of Digital Payments on the Intermediary Business of Commercial Banks

Effectiveness of Credit Terms on Management of Non-Performing Loans in Kenyan Commercial Banks

This study sought to establish the effectiveness of Credit Terms on Management of Non-Performing Loans in Kenyan Commercial Banks. The specific objective was to establish how credit term was effective in managing non-performing loans by reviewing credit period, credit limit, interest rates and default term within the corporate, business and personal segments of commercial banks in Kenya. The study was guided by both the Theory of Information Asymmetry and Credit Scorecard theories. An explanatory research design was adopted employing both simple random and stratified sampling techniques. The sample comprised 222 credit officers employed in the 41 commercial banks in Kenya. Structured questionnaires were applied to the credit officers in the collection of primary data. Cronbach’s alpha and factor analysis were applied in testing both the reliability and validity of the research instruments. A multiple regression model using SPSS (Version 23) was used in the analysis of the obtained data and to test the hypotheses. The study identified that credit terms (ꞵ= .570) had a positive and significant effect on management of nonperforming loans. In regard to this new knowledge, the study recommends that credit terms be adopted by the management of commercial banks and policymakers. This will help the banks increase their profitability, enhance their growth and cope with the intense competition within the banking industry.

Research on Risk Management of Green Finance Business of Chinese Commercial Banks under the Background of “Dual Carbon”—Taking JS Bank as an Example

Research on Risk Management of Green Finance Business of Chinese Commercial Banks under the Background of “Dual Carbon”—Taking JS Bank as an Example

Research on the Application and Practice of Blockchain Technology in Supply Chain Monetary Arrangements Business of Commercial Banks

Research on the Application and Practice of Blockchain Technology in Supply Chain Monetary Arrangements Business of Commercial Banks

Assessing the effect of green credit on risk-taking of commercial banks in China: Further analysis on the two-way Granger causality

Green credit is a new financial instrument that has emerged in response to the call for the transformation of the “green economy" model. It aims to utilize financial means to support green industries and environmental projects, serving as a crucial lever for the integration of social and economic benefits. It also represents a significant developmental direction for the future credit business of banks. Leveraging microdata from 36 banks spanning the years 2007–2022, this study explores the correlation between green credit and the risk-taking behavior of commercial banks in China, building upon the DID model. Meanwhile, Granger causality tests are employed to investigate the bidirectional relationship between these two core objects. The research results indicate that green credit has a short-term mitigating effect on the risk-taking behavior of commercial banks. This risk-mitigating effect is more pronounced among banks with smaller assets and lower profitability. However, this effect diminishes over time, ultimately resulting in an increased propensity for risk-taking in the long run. Moreover, this highlight posits that the credit risks of banks do not influence the implementation of green credit policies. Consequently, this paper offers essential reference value for the risk management practices of commercial banks in the emerging economies and other global countries.

ВПЛИВ ЦИФРОВИХ ВАЛЮТ НА ФІНАНСОВИЙ СЕКТОР

The article studies the development of digital technologies in the global economy. It is determined that central bank digital currencies open up new opportunities in improving the efficiency of payment systems, reducing the cost of transactions in e-commerce, and increasing the level of financial inclusion. It has been found that the introduction of central bank digital currencies (CBDCs) may affect the deposit base of banks, potentially leading to increased costs and changes in their business models. However, beyond simple costs, a CBDC could also negatively impact the stability of the banking sector by expanding direct access to central bank liabilities, providing a public substitute for bank deposits, and altering bank business models. In general, competition for bank deposits from CBDCs may alter the architecture of the financial system, displacing the class of private debt, forcing banks to rely on alternative sources of financing, and possibly making the banking sector more vulnerable. The trilemma, which illustrates the fundamental principles of trade faced by central banks in managing CBDCs, has been analysed, demonstrating the complexity of balancing them in response to changes in financial technologies and economic expectations. According to Schilling, this trilemma asserts that a central bank managing a CBDC can achieve at most two of the following three objectives: financial stability, efficiency (optimal distribution of risks), or price stability. Choosing one of these objectives will inevitably lead to the sacrifice of at least one of the other two. It is concluded that digital central bank currencies are a new frontier in international monetary relations that can significantly change the way countries conduct cross-border trade, monetary policy, and financial cooperation. The impact of CBDCs on the financial sector can have far-reaching consequences, both positive and potentially negative. On the one hand, CBDCs promise to revolutionise the financial sector by improving the efficiency of payment systems, reducing transaction costs, and promoting greater financial inclusion. On the other hand, they can negatively impact the stability of the current financial system.

The Zone of Interest: Deciphering Economic Policy Uncertainty and Bank Business Models in the UK

The Zone of Interest: Deciphering Economic Policy Uncertainty and Bank Business Models in the UK

Трансформация рисков в банковской системе в условиях цифровизации бизнеса

This material attempts to consider individual problems and identify emerging contradictions in the digital transformation of the banking business. The author expresses his opinion regarding the feasibility and appropriateness of the digital transformation of banks and the economy as a whole. Today, the mass introduction of digital technologies is becoming increasingly widespread in the world, being, in fact, a global trend, a global startup. At the same time, the feasibility and possible consequences of global digitalization are today the subject of active and controversial discussion among both representatives of theory and practitioners, especially in the financial and banking sector, the risks of which are equally significant for banks and their partners and clients. The development of information technologies in the banking sector creates worsening problems and vulnerabilities in the transformation of banks’ business models due to the insufficient alternatives to security systems, as well as the legal vacuum.

Влияние бизнес-модели коммерческого банка на организацию работы с корпоративными клиентами

The study focuses on a business model that fully defines the approaches and methods of work of a commercial bank with corporate customers. The customer base of particular credit institutions changed considerably in 2022–2023, while the structure of the cumulative balance did not experience profound changes. Thus, PJSC JSCB Avangard’s focus on corporate services led to substantial changes in the liability structure, causing an outflow of funds from individuals. The authors analyzed the business model of Avangard in comparison with the activities of banks operating under the Tochka brand. The financial strategy of Avangard is to increase risk-free (transaction) income and liquid assets on the balance sheet while reducing the accepted credit risk. A special feature of the business model of Avangard is the fact that the majority shareholder takes an active part in resolving not only strategic but also major operational issues. Avangard is a member of a large financial group, which includes organizations in the agricultural, industrial, economic, and investment sectors and services their functioning, without placing much emphasis on attracting clients external to the group. According to the study, the business model of working with corporate customers of the classical bank PJSC JSCB Avangard has the main advantage of maintaining its traditionalism, while also being flexible in digital development, immediately adapting to the turbulence of the financial market, and developing its technological effectiveness. This model of a classic bank, focused on the quality of cash services, will be in demand among corporate customers in the coming years, and, perhaps, even more viable than the Tochka ecosystem models. The shortcomings of the business model of Avangard are the low level of involvement in the competition for servicing small and medium-sized businesses corporate segment, which is reflected in unfavorable tariffs, underdeveloped affiliate programs and digital areas of banking business, in comparison with the activities of Tinkoff Bank JSC, VTB Bank (PJSC), Alfa-Bank JSC and Sberbank PJSC.

Factors Influencing Stock Prices in Commercial Banks of Nepal

This study explores the factors that influence stock prices in commercial banking business in Nepal. Descriptive and causal-comparative research design and purposive sampling technique used in this research examine how critical financial variables affect market prices per share (MPPS), including book value per share, earnings per share, dividend per share, and price-earnings ratio. There is a statistically significant but relatively small positive correlation between book value per share. The results show that MPPS and earnings per share, dividend per share, and price-earnings ratio are significantly positively correlated. The model demonstrates its robustness in capturing stock price changes by accounting for around 86.1% of the variation in MPPS. These observations offer insightful recommendations for experts and investors involved in Nepal's commercial banking sector.

Religious Construction in Decision ­Making of Indonesian Customers for Financial Transactions on Syariah Banks

This study aims to explain how Islamic concepts, symbols and values have implications for people. Especially when they must make decisions to make financial transactions in Islamic banking. Likewise, the religious trend accompanied by the spirit of city has resulted in the enthusiasm of the community to transact with institutions labelled religion in practice. Data collection used in this study was carried out by observation and distributing questionnaires to respondents (customers). Documentation studies are also conducted to find literature related to this study. There are three findings described in this study. First, the conception and symbol of religion is an essential element in the existence of Islamic banking in Indonesia. Second, the understanding of the religious community has been constructed in the decision to make economic transactions in Islamic banks. Third, the religious trend accompanied by religious zeal makes sharia banks in Indonesia have bright prospects to attract the interest of the public to transact. The enermous potential of Islamic banks in Indonesia will experience an increase if the religious values and symbols are implemented correctly and adequately. Religious construction of economic behaviour has resulted in a shift in the pattern of community transactions in the name of religion. This shift certainly provides not only positive expectations in the religious society, but also provides broad opportunities for the banking business world.