Performance Of Commercial Banks Research Articles

Corporate Social Responsibility and Financial Performance of Commercial Banks in Rwanda: A Case of BPR Bank Rwanda Plc

Corporate Social Responsibility (CSR) denotes firms’ commitment to conduct their activities ethically by considering their social, economic and environment effects. CSR can be vital for commercial banks in Rwanda in creating lasting corporate image that serve to benefit their financial performance. The present research examined the contribution of CSR on financial performance of commercial banks in Rwanda using a case of BPR Bank Rwanda Plc, located in Nyarugenge District, Rwanda. A descriptive and correlational research design was adopted using both quantitative and qualitative approaches. The target population of this research was 125 employees from the bank and sample size of 96 selected using stratified random sampling technique. Data collection was done using questionnaire and interview guide. Secondary data was obtained using desk research from financial statements published by the bank. Pearson correlation and multilinear regression analyses were performed to measure the effect. The findings on employee trainings (r=0.233, p=0.022) was significantly and positively related to financial performance of commercial banks. Since the p-value was less than 5%, then the correlation was statistically significant. Similarly, charity work (r=0.283, p=0.005) and community development projects (r=0.475, p=0.000) positively influence the financial performance of BPR, since the p-value were less than 5%. All the indicator variables of CSR were seen to have positive effect on financial performance of commercial banks though with low correlation. The regression model (F=23.917, p=0.000) was statistically significant since the p-value was less than 5%. The researcher recommends that bank managers should analyze the viability of the current CSR strategies before launching new strategies. It is only after critical analysis that managers can use new CSR strategies. They should also make sure that any new CSR strategies are aligned to the overall mission and vison of the bank.

The Financial Performance of Commercial Banks and Their Financial Management Practices: A Case Study

The research used IDBI Bank's Hazratganj Branch in Lucknow as a case study to look at how financial management methods affect the bottom line of commercial banks in the city. Its direction came from three main points: i) to investigate the impact of risk management on IDBI Bank, Riyadh's financial performance ii) research the effects of working capital management on the financial performance of IDBI Bank's Hazratganj Branch; and iii) evaluate the effects of assets management on the same branch's financial performance. Integrating qualitative and quantitative methods, the study followed a phenomenological trend. So far, sixty-two people have participated in the research. Analysis of the data showed that the following management functions had the highest Adjusted R Square values: risk (66.4%), working capital (51.9%), and assets (82.5%). Finally, the financial performance was much improved because to the crucial role that risk management played. Evidence from this study supports the idea that risk management is an essential management function for sound financial results. Furthermore, it was shown that the commercial bank's financial performance was significantly improved by better asset management. Management should handle creditors and cash inventories well, according to the report, so that institutions may fund their activities without financial constraints. They also said that as commercial banks deal with liquid currency, it makes sense for them to improve their liquidity by maintaining good relationships with their shareholder

Effect of Capital Structure on the Financial Performance of Ethiopian Commercial Banks

This study aimed to examine the effects of capital structure on the financial performance of Ethiopian commercial banks. The dependent variable, financial performance, is measured by Return on Assets (ROA), while factors such as loan-to-deposit ratio (LDR), asset-to-total equity ratio (ATER), total deposit-to-total asset ratio (TDTAR), capital adequacy ratio (CAD), and asset growth ratio (GA) were used as proxy independent variables to gauge capital structure. Using a quantitative approach and an explanatory research design, this study analyzes 6 years of audited financial reports from 14 commercial banks in Ethiopia. This investigation employs a random effect regression model and Stata 14 software package to explore the relationships among these variables. The result revealed that both the loan-to-deposit ratio and the total deposit-to-total asset ratio have a positive and significant impact on financial performance, while the asset growth ratio showed a negative effect. Based on these findings, this study recommends that bank authorities concentrate on bolstering their deposit base, managing asset growth efficiently, maintaining adequate capital levels, and optimizing leverage levels to improve financial performance and ensure long-term sustainability in the banking sector. Additionally, this research is anticipated to inform policymakers about regulatory frameworks for banks and assist banking managers in formulating effective capital financing strategies within the Ethiopian commercial banking sector, thus enriching the existing literature on the relationship between capital structure and financial performance.

The Impact of Credit Risk Management on Commercial Banks Performance in Democratic Republic of the Congo

The Impact of Credit Risk Management on Commercial Banks Performance in Democratic Republic of the Congo

Corporate Social Responsibility and Financial Performance of First Bank Limited in Nigeria

The study focused on the nexus between corporate social responsibility and financial performance of First Bank Limited in Nigeria. The financial performance of commercial banks in Nigeria pertains to the detailed analysis and disclosure of specific factors influencing the after tax profit, the effectiveness of credit risk management practices, and the impact of macroeconomic variables on asset quality, which are crucial for assessing the overall health and stability of the banking sector. The specific objectives were to: ascertain the effect of social expenditure on profit after tax; and determine the effect of environmental expenditure on profit after tax of First Bank Limited. Ex-post facto “design was adopted for this study. Ex-post facto design was used since the researcher relied on historic or secondary accounting data obtained from published annual financial statements of the bank for a period of ten years covering 2013 to 2022. The finding of the study indicates that: there is a positive and significant effect of social expenditure on profit after tax; and there is a positive and significant effect of environmental expenditure on profit after tax of First Bank Limited. The study concluded that there is significant effect of corporate social responsibility and financial performance of First Bank. It was recommended that the bank continues to prioritize and potentially increase investments in social initiatives, ensuring alignment with its corporate objectives, and also expand its environmental sustainability initiatives, leveraging opportunities to invest in eco-friendly technologies and green infrastructure.

Branchless Banking and Financial Performance of Commercial Banks in Kenya

Commercial banks remain the principal constituents within the financial sector. Their performance is important since it serves other sectors, for example fishing, agriculture, manufacturing, energy and petroleum, mining, hospitality as well as tourism within the economy. Commercial banks’ performance shows a direct effect towards the overall economy and hence there is need for stability in their performance. The current study targets to evaluate how branchless banking impacts financial health of banks. The study aims to establish how banking via mobile phones affects Kenyan banks' performance, how ATM banking affects Kenyan banks' performance financially, how financial deepening affects Kenyan banks' performance financially due to branchless banking, and how regulations affect Kenyan banks' performance financially due to branchless banking. The study was in accordance with agency theory, financial deepening theory, and innovation diffusion theory. The study employed a correlation design and collected secondary data on commercial banks from 2012 to 2020. Causal research design was utilized, and all 39 commercial banks were included in the study. Regression analysis for data spanning eight years (2012-2020) was used. The study findings indicated that branchless banking has a significant impact on the financial performance of commercial banks in Kenya, with financial deepening playing a significant mediating role. Furthermore, bank regulations had a significant moderating effect on the relationship between branchless banking and commercial bank financial performance. The study recommends that commercial banks adopt branchless banking through mobile and ATM banking, increase customer usage of mobile banking, expand ATM banking services, and enhance financial deepening.

Impact of strategic planning on the performance of commercial banks: the case of public commercial banks in Eastern Hararghe, Ethiopia

Impact of strategic planning on the performance of commercial banks: the case of public commercial banks in Eastern Hararghe, Ethiopia

The Effect of Bank Size, Net Interest Margin, and Capital Adequacy Ratio on Commercial Banks’ Return on Assets: Empirical Evidence from Tanzania

While the current body of literature offers valuable insights into the factors influencing bank financial performance, there is a significant paucity of empirical research focusing on least developed nations. This paper presents new evidence of the effect of bank size, capital adequacy ratio (CAR), and net interest margin (NIM) on banks’ return on assets (financial performance) from the perspective of Tanzania – a least-developed country. We employed the Random Effect, and the Generalized Least Squares (GLS) regression models utilizing a panel dataset spanning the period 2000 to 2022 of ten (10) Tanzanian commercial banks to examine the specific effect of the foregoing variables on commercial banks’ financial performance. The estimation results show that capital adequacy ratio (CAR) and bank size have positive significant effects on the financial performance of commercial banks in Tanzania. Whereas we found inconsistent results for the effect of NIM; while the random effect model shows a marginally significant positive effect on ROA, the GLS regression shows a significant negative effect, indicating that the effect of NIM could be either positive or negative depending on the context. Therefore, policymakers should prioritize measures aimed at promoting healthy levels of capital adequacy and encouraging the growth of larger banks while ensuring adequate oversight to mitigate potential risks associated with market dominance. Additionally, regulatory frameworks should be designed to foster competition and efficiency in the banking sector, facilitating a conducive environment for banks of all sizes to thrive and thus contribute to economic growth.

Effects of Non-Performing Loans & COVID-19 Pandemic on the Performance of Commercial Banks in Sri Lanka

The COVID-19 pandemic has significantly impacted the global economy, and the non-performing loans (NPLs) have become a pressing issue for commercial banks in Sri Lanka. It is doubtful how the NPLs and COVID-19 Pandemic have affected the performance of commercial banks in Sri Lanka. Thus, the purpose of this study is to investigate effects of non-performing loans & COVID-19 pandemic on the performance of Sri Lankan commercial banks for the period of 2011 - 2021. The panel data regression analysis was used to investigate the effects of non-performing loans & COVID-19 pandemic on the financial performance of Commercial Banks. The results of the analysis revealed that non-performing loans and the pandemic period have a negative impact on the profitability of commercial banks in Sri Lanka. Thus, this study is useful for bank management officials to protect banks from crises and create ideas to enhance the performance of banks.

Transformative Waves: Impact of Information Technology on Operations of Commercial Banks in India

This research abstract provides a glimpse into a study focused on investigating the profound impact of Information Technology (IT) on the operations of commercial banks in India. Employing a mixed-methods approach, incorporating qualitative insights and quantitative analyses, this study aims to explore the multifaceted dimensions of IT integration, its challenges, and the resultant transformation in the operational landscape of Indian commercial banks. The qualitative aspect of the study involves interviews, case studies, and expert opinions to capture nuanced perspectives on how IT adoption has reshaped banking operations in India. Simultaneously, quantitative data will be analyzed to identify trends, correlations, and statistical patterns associated with the impact of IT on key operational metrics. Various dimensions of the impact of IT on banking operations will be investigated, including enhanced efficiency through automation, the evolution of digital banking channels, cybersecurity challenges, and the overall influence on customer experience. The study aims to provide insights into the strategic implications of IT integration for commercial banks in India.
 The findings from this research are anticipated to offer valuable insights for banking professionals, IT experts, policymakers, and decision-makers. By understanding the multifaceted impact of IT on operations, stakeholders can formulate strategies to harness technological advancements, address challenges, and contribute to the ongoing digital transformation of the banking sector in India. This study serves as a foundation for informed decision-making and future research within the realm of its impact on the operations of commercial banks.

Accounting Information System as the Predictor of the Performance of Private Commercial Banks in Bangladesh

Accounting Information System as the Predictor of the Performance of Private Commercial Banks in Bangladesh

The Impact of Green Accounting on the Financial Performance and Reputation of Commercial Banks

The Impact of Green Accounting on the Financial Performance and Reputation of Commercial Banks

Financial Performance of Islamic Banking in Indonesia with The Maqashid Syariah Index Approach

Banking performance is measured using financial ratios. However, for Islamic banking, it is much more complex compared to conventional banking. It's not just about testing profitability levels; it's more about compliance with Islamic principles, namely Maqashid Shariah. This makes the products and performance evaluation of Islamic banking distinct from conventional banking. The purpose of this research is to assess the financial performance of Islamic Commercial Banks in Indonesia using the Maqashid Shariah Index approach for the period 2017-2019. This research is classified as descriptive quantitative research. The objects of the study are Bank Muamalat Indonesia (BMI), Bank Syariah Mandiri (BSM), Bank Tabungan Pensiun Nasional (BTPN Syariah), and Bank Aceh Syariah (BAS). The research method used the Maqashid Shariah Index analysis technique. The data used are secondary data in the form of annual reports from 2017-2019 obtained from the official websites of each bank. The research results indicate that the financial performance of Islamic Commercial Banks (BUS) using the Maqashid Shariah Index for the period 2017-2019 is as follows: Bank Syariah Mandiri (BSM) achieved the highest ranking with an index value of 0.273841 or 27.38%. The second rank is held by Bank Muamalat with an index value of 0.267941 or 26.79%. The third rank is obtained by Bank Aceh Syariah with an index value of 0.260473 or 26.047%, and BTPN Syariah has the lowest ranking with an index value of 0.1735705 or 17.35%.

Corporate Communication and Organizational Performance: A Study in Commercial Banks in Kenya

The research delves into the influence of corporate communication on the organizational performance of commercial banks in Kenya, prompted by the sector's persistent decline despite its substantial number of licensed institutions, with only a handful dominating the market. The predominant focus on financial metrics has overshadowed the concerns of vital stakeholders such as employees, customers, communities, and regulators. Using a descriptive cross-sectional approach, data were gathered from 394 respondents across 39 banks via a questionnaire, which was then analyzed using SPSS. The findings reveal a significant correlation between corporate communication and banks' performance, suggesting that ineffective communication during corporate changes significantly contributes to performance decline. The study proposes the integration of corporate communication into corporate change strategies, a priority set by senior management, to drive comprehensive organizational performance and address stakeholders' needs, thereby fostering sustainable growth and expansion opportunities for banks.

ORGANIZATION OF CASH WORK IN COMMERCIAL BANKS IN UZBEKISTAN, IMPROVEMENT OF AUDIT OF COLLECTION OF CASH AND OTHER VALUES AND DEVELOPMENT OF THE FINANCIAL SYSTEM

“Banks take into account the optimization of their liquidity risk, external factors associated with their overall choice, as well as the risk of the financial system. The banking sector in Kenya has had problems with liquidity and from financing to market risks. The purpose of the study is to assess the impact of monetary reserves as well as the performance of commercial banks in Kenya. The study showed that cash reserves have a strong negative impact, and the interaction with the profitability of capital gives a significant negative relationship with the performance of capital. The study recommended that banks minimize cash reserves and invest instead, effective investments are those money, diversification as their sources, and diversification of investments are those funds”.

Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan

The paper analyses the market perception about the performance of Pakistani commercial banks in the wake of financial liberalisation and deregulation measures taken by the central bank over the last two decades. For this purpose, it uses the Survey approach. Out of 35 commercial banks, 15 banks have been chosen for analysis purposes. The paper mainly finds that key banking reforms have helped in removing the flaws in the banking sector of Pakistan. In particular, privatisation of banks, the deregulation and institutional strengthening measures, switching towards market-based monetary and credit management systems were instrumental in streamling banking operations. Similarly, the removal of restrictions on entry of private banks and operational restrictions on foreign banks also significantly contributed to the provision of quality banking services. The resultant competitive environment is the key factor behind improved efficiency of banks in Pakistan. The banks devised a number of strategies to respond to the competitive market conditions in the country. However, they faced various constraints in this regard, especially lack of managerial skills, and in hiring IT professionals, etc. As a part of future strategy, banks are likely to form more strategic alliances with foreign banks and undertake the expansion of business through widening of branch network. Despite a number of successful stories on different fronts, the central bank could not succeed in narrowing down the banking spread which is one of the key measures of banking performance. High domestic inflation, large non performing loans (NPLs) of banks, high administrative expenses, larger intermediation costs, and poor debt recovery are identified as important factors behind widening of banking spread. 1. INTRODUCTION The banking sector of an economy generally performs three primary functions: the facilitation of payment system, mobilisation of savings, and allocation of funds to stakeholders like government, investors, consumers, and business community who can utilise them for generation of economic activities.1 By virtue of its pivotal role, the banking sector can exert its positive influence on various segments of an economy. This gives it a privileged position among other sectors. In view of its significant role, economic managers always endeavour to devise such policies which could help provide the sector a level-playing field, thereby enabling it to operate on sound, efficient, and competitive footings. As in other emerging market economies, banks have been playing an important role in Pakistan also. However, the financial landscape of the country changed significantly in the 1970s with the nationalisation of Pakistani commercial banks. The Government also took various regressive steps, which included, among others, the initiation of subsidised bank credit schemes, the introduction of a complex system of credit ceilings, and imposition of controls on interest rates.3 These policy measures severely affected the efficiency of the banks. By the end of the 1980s, it was felt that Pakistan’s banking sector was not able to meet adequately the financial needs of the country

Analyzing the Effects of Macroeconomic Factors on the Financial Performance of Bangladeshi Commercial Banks

Since banks mobilize financial resources across the economy, they are expected to be critical in bringing about financial stability and economic progress. The purpose of this research was to determine the impact of macroeconomic variables on the financial performance of commercial banks in Bangladesh. From the World Bank website, secondary data were gathered for the fiscal years 2010 through 2021. Correlation, multiple linear regression, factor analysis, and model selection criteria were utilized for this study. From the correlation analysis, it was observed that the inflation rate was significantly and positively correlated with the financial performance of commercial banks in Bangladesh. From the multiple linear regression analysis, it was seen that import, exchange rate, and inflation rates have a substantial impact on Bangladesh's commercial banks' financial performance. From the factor analysis, it was observed that GDP and imports are highly correlated with Bangladesh's commercial banks' financial performance. Based on the model selection criteria, it was discovered that the model including all variables is the best. The government, other researchers, bank managers, possible investors, financial experts, and anybody else involved in Bangladesh's banking sector should all take note of the findings.

Team Communication and Employee Performance in Commercial Banks in Tanzania

This study established the influence of team communication on employee performance in commercial banks in Tanzania. The study was anchored on the Katzenback and Smith model. The study adopted a descriptive survey research design and targeted all 39 operational commercial bank headquarters. The unit of observation comprised senior managers, managers, supervisors, and lower-level employees in each of the commercial banks under review thus making a total of 1480 of the targeted respondents. A simple random sampling technique was used to select the respondents; however, the expected sample size was 445 respondents with each senior manager, manager, supervisor, and lower-level employee contributing 30 percent of the total sample size. Both descriptive and inferential statistics were used to analyze the data with the assistance of statistical package for social sciences version 26. The study established that team communication influences employee performance in commercial banks. The study recommended that banks and many other organizations need to put in place mechanisms on how to evaluate -employee-based team performance rather than the rule thumb individual-based performance evaluation. The study has also pointed out strategic areas of importance into which managers in banks can look into the respective banks such as team communication that if well accommodated influence employee performance. In addition to other recommendations, it was proposed that, in light of these findings, work organizations evaluate their high-performance work system policy and activities by the degree to which they contribute directly to the accomplishment of the team’s strategic goals and objectives through the improvement of the employee performance.

THE INFLUENCE OF INTERNAL FACTORS, BANK SIZE AND GOOD CORPORATE GOVERNANCE ON THE PERFORMANCE OF COMMERCIAL BANK LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2021-2022

This research aims to test whether there is an influence between the NPL ratio, OER, CAR, LDR, SIZE and GCG on the performance of commercial banks on the BEI in 2021-2022. The population in this research are management parties involved in commercial banking companies listed on the IDX. The number of samples in this research was 36 companies in 2021-2022. The sampling technique uses a purposive sampling method. The research method used is quantitative with data sources in the form of secondary data. The data analysis method uses multiple linear regression analysis with SPSS version 25. The results of this research show that the variables NPL, OER, LDR, LnSIZE do not have a significant effect on Commercial Bank Performance (ROA), while CAR and GCG has a significant effect on Commercial Bank Performance (ROA ). Simultaneously the variables NPL, OER, CAR, LDR, Company Size, and GCG, have an influence on Commercial Bank Performance (ROA)

Indonesia Islamic Banks Performance Pre and During Covid-19 Pandemic Based on the Maqāsid Sharīʿah Index

This study try to analyze and compare the performance of Islamic commercial banks pre and during COVID-19 (2018- 2021) based on the Maqāsid ul-sharīʿah index using the Simple Additive Weighting Method (SAW) which was carried out on 11 Islamic commercial banks in Indonesia and to provide deeper information to stakeholders regarding the performance of Islamic commercial banks which are different with conventional bank. The result show that there were eight banks that experienced an increase in Maqāsid ul-sharīʿah performance from the pre-COVID- 19 period, while 3 other banks decreased in terms of performance. On the other hand, when viewed from a rating comparison perspective, there are four banks that have experienced an increase in rating and 3 banks have decreased in terms of rating, while the remaining four banks are at the same rating.