Corporate Banking Research Articles

Assessing the Impact of Women Discrimination in HRM Practices on Three-component Model (TCM) of Organizational Commitment: A Study on the Indian Banking Sector

Notably, social-psychological approaches such as relative deprivation theory (personal and collective) and social exchange theory posit that there exists a negative association between women discrimination in HRM practices and organizational commitment. It is pertinent to note that the study of organizational commitment is significant across behavioral and attitudinal perspectives as well as differing conceptualizations. Considering this, the present study aims to investigate the causal linkages between women discrimination in HRM practices and the three-component model (TCM) of organizational commitment in the Indian banking sector. To test the hypothesized relationships, partial least squares structural equation modeling (PLS-SEM) was used on a sample of 394 women employees from the following banks in Northern India—State Bank of India, Punjab National Bank, Housing and Development Finance Corporation Bank, and Jammu and Kashmir Bank. The results obtained revealed that women discrimination in HRM practices has a significant negative impact on all three components of the TCM approach of organizational commitment—affective commitment, continuance commitment, and normative commitment. Specifically, the negative effect was found more on affective commitment and normative commitment, unlike continuance commitment. Consequently, the current study has thrown light on theoretical and managerial implications along with directions for future research.

Digitalization Management in the Corporate Banking Sector of Ukraine

Introduction. Digitalization in trendy banking services requires changing their relationships with corporate clients within the framework of an individual approach to each client in the context of the development of the latest information and communication technologies and Internet marketing. Therefore, improving the business customer service system based on innovative technologies in banks to increase their competitiveness and profitability remains relevant. Aim and tasks. This study aims to examine the trends in banks’ service of corporate clients in the context of the latest financial technology development and to determine the directions for forming a digitalization strategy in corporate banking in Ukraine. Results. The growth of corporate clients in the banking system of Ukraine in 2022-2024 became possible due to the digitalization of management and the implementation of electronic payment systems, which contributed to the growth in the number of open accounts, which increased by 27%, while the growth of remote servicing increased from 78% to 89% of business clients. The top 10 banks in Ukraine account for 75% of the funds in corporate clients’ accounts. Along with high reliability, the clients of these banks have come to value the digital services that banks provide that meet global standards. As a result of the growth in the volume of banking services provided to corporate clients in 2023 using digital technologies, the volume of fee and commission income of the Ukrainian banking system increased by 13% compared to 2022. Conclusions. The banking system of Ukraine is in the process of digital transformation that promotes the transformation of financial institutions into high-tech platforms capable of creating new algorithms for generating profit from digital technologies. Implementing digital transformation in the banking sector increases the number of banks` corporate clients and their satisfaction with banking products and services. This leads to an increase in the efficiency of banking activities and banks’ profitability through increased commission income. The forecasting of commission income of Ukraine’s banking system conducted in this study showed that further introduction of digitalization into corporate banking could contribute to their growth by at least 8% annually.

Pengaruh Non Performing Loan, Loan To Deposit Ratio Dan Biaya Operasional Pendapatan Operasional (BOPO) Terhadap Return On Asset Pada Sektor Perbankan Yang Terdaftar Di Otoritas Jasa Keuangan (OJK) Periode 2017-2021

The purpose of this research is to identify the impact of non-performing loans (NPL), loan to deposit ratio (LDR), and operational income operating costs (BOPO) on return on assets (ROA) in corporate banking. This research was conducted on banking sector corporations registered with the Financial Services Authority (OJK) in the 2017-2021 period. Purposive sampling was used as a sampling method involving 64 sample issuers. Quantitative data and secondary data used in research. Observation and documentation studies are used as collection techniques. Multiple linear regression analysis was used as a data analysis technique. The research results indicate that simultaneously, return on assets (ROA) is significantly influenced by non-performing loans (NPL), loan to deposit ratio (LDR) and operational income operating costs (BOPO). Partially, return on assets (ROA) is significantly negatively affected by non-performing loans (NPL) and operating income operating costs (BOPO), on the other hand, return on assets (ROA) is significantly influenced positively by the loan to deposit ratio (LDR).

Bank Balance: A Comparative Study of SBI & HDFC

The research project titled "Bank Balance: A Comparative Study of SBI & HDFC" aims to provide a comprehensive comparison of the financial performance of two of India's leading banks: the State Bank of India (SBI), a prominent public sector bank, and Housing Development Finance Corporation(HDFC) Bank, a major private sector player. The objective is to evaluate their financial health through key metrics such as profitability, asset quality, and operational efficiency, thus informing stakeholders about their competitive positions. Utilizing a quantitative methodology, the study analyzes financial statements and key performance indicators from the fiscal years 2019 to 2024. Data was sourced from official bank reports, regulatory filings, and financial databases, allowing for a robust comparative analysis.

What investors want from whom: international organizations and the International Association for the Promotion and the Protection of Private Foreign Investments (APPI) 1958–1974

Abstract Using archival material from states, international organizations, and business actors, this paper explores how the Association for the Promotion and Protection of Private Foreign Investments (APPI), a transnational business interest association (BIA), liaised with different international institutions to lobby for better foreign investment protection. We zoom in on the United Nations, the Organization for Economic Co-operation and Development, and the World Bank to examine how APPI influenced the global institutional landscape during its heydays from 1958 until 1974. We show that business actors, particularly oil and banking corporations, created APPI as a nimble, efficient alliance that could move faster than existing BIAs. We further demonstrate how companies “forum shop” between different BIAs, and how APPI injected its ideas into the policymaking process, using the framework of the three faces of power. By shedding light on the role private business actors played in foreign investor protection, the paper contributes to a better understanding of the emergence of global economic governance in the second half of the 20th century.

Tác động của quản trị công ty và thu nhập phi tín dụng đến hiệu quả tài chính của các ngân hàng thương mại Việt Nam

The roles of non-interest income and corporate governance on bank operations in the literature have not been a cooperative explanation. Therefore, the paper determines corporate governance and non interest income on the Vietnamese banks' financial performance from 2011 to 2021. SYS-GMM demonstrates that non-interest income, fees, and other income enriches Vietnamese commercial bank’s financial performance. Regarding bank corporate governance, the board size, CEO ownership, state ownership, and foreign ownership negatively impact ROA and ROE. Conversely, the number of female boards, board ownership, and board compositions enhances the banks' financial performance. The interesting judgment is the corporate governance factors will lessen the intensity of the effect of noninterest income and its components on the banks’ financial performance. The paper proposed some implications for optimizing corporate governance (board characteristics and ownership structure) and increasing non-interest income to improve Vietnamese commercial banks’ financial performance.

Bank Corporate Governance: Shield Against Fraud

An efficient corporate governance system in a bank is crucial for maintaining financial stability, boosting stakeholder confidence, promoting corporate accountability, and mitigating fraud risks. This paper investigates the role of bank corporate governance in safeguarding against fraud, reviwing 20 artciles published from 2017-2024. The study belives that fraud in banking institutions is a significant threat to the financial system, causing financial hardship and disrupting the banking system, indicating that opportunity such poor governance, weak control systems, poor organizational culture is the most contributing factor of these illegal and unethical behavior. The paper found that strong corporate governance significantly reduces the risk of fraud, with the board and audit committee playing a crucial role in ensuring accountability and boosting governance. To achieve bank corporate governance goals, it is necessary to utilize all available resources, including human and technological resources. The paper also found that corporate governance brings benefits such as increased transparency, accountability, reduced risk, enhanced decision-making, compliance, ethical conduct, and improved brand value, underlying that fraud risk incurs financial costs, reputational and regulatory risks, and decreased employee efficiency. The review concludes that bank corporate governance can act as shield against fraud, adding that ethical leadership, focusing on transparency and accountability, is essential for effective governance and deterring bank fraud. The study suggests investigating various types of fraud in the banking sector and their correlation with corporate governance, as well as conducting longitudinal studies to assess the long-term effects of robust corporate governance. Originality/contribution: The study asserts that effective governance is crucial for banks to become secure, stable, and robust. It emphasizes the importance of the board, audit committee, and moral leadership as crucial elements, and offers a how bank fraud is mitigated through good bank governance.

Bank sustainability, climate change initiatives and financial performance: The role of corporate governance

This study elucidates the interrelationships among corporate governance disclosure index (CORPGOVDISCIN), bank sustainability characteristics (BSCs), bank-based climate change initiatives (BCCIs) and financial performance (FP) through the lens of multi-theoretical framework. Based on a panel dataset of 2785 observations (220 banks) from 16 Sub-Saharan Africa countries between 2007 and 2022, we observe that bank sustainability reporting framework (BSRF) and board sustainability committee (BSCOM) are positively related to increased levels of BCCIs. Second, the study shows that the BSRF-BCCIs and BSCOM-BCCIs associations are positively moderated by CORPGOVDISCIN, indicating that these relationships are contingent on the quality of the bank's corporate governance mechanisms. Third, the study then provides evidence that BSCOM is positively related to FP, but BSRF has no effect on FP. Fourth, we also observe that BCCIs disclosure has positive impact on FP, but actual BCCIs investments do not seem to improve FP. Fifth, the study detects that the association between BCCIs and FP is significantly moderated by CG mechanisms. We identify CG disclosure as the possible channel through which BCCIs and FP are interlinked. Finally, we show that the predicted relationships vary across banks' operating periods. Our findings are robust to endogeneity and selection bias concerns.

THE SIGNALING EFFECTS OF DIFFERENT TYPES OF R&D GRANTS ON CORPORATE EXTERNAL FINANCING: EVIDENCE FROM CHINESE LISTED FIRMS

In this study, we investigate the heterogeneous signaling effects of government research and development (R&D) grants on corporate bank financing regarding various types of grants. While the literature primarily focuses on the information asymmetry between banks and receivers, this study focuses on the more fundamental aspect of disparate signals sent from various types of subsidies. We categorize public R&D subsidies into three types: project-based, special grants and general subsidies. By using data from Chinese listed firms between 2008 and 2018, we find that R&D projects have positive certification effects on corporate external financing, special funds do not have significant effects, and general subsidies send negative signals regarding firm quality, resulting in the reduction of long-term bank loans of recipients. However, the negative signaling effects of general subsidies are found to be counteracted by political connections, suggesting that the signal associated with political capital could be greater than that associated with firm quality.

Basel framework for corporate governance of banks

The Basel framework for bank corporate governance is a set of international guidelines and standards established by the Basel Committee on Banking Supervision, which plays a crucial role in setting the corporate governance practices of banks around the world, actively contributing to improving stability, risk management and compliance with national and international regulations applicable to banks. This regulatory framework outlines the principles and requirements related to risk management, capital adequacy, internal controls, transparency of bank shareholders and customer relations, but there is a strong emphasis on board oversight, accountability and the alignment of incentives with long-term sustainability. Banks are currently implementing Basel IV - the continuation of Basel III standards, developed in response to the deficiencies in financial regulation revealed by the 2007 financial crisis, with the aim of strengthening bank capital requirements by increasing minimum capital requirements, holding high-quality liquidity and decrease in bank leverage.

Do Corporate Governance and Bank-Specific Factors Matter On Banking Financial Performance?

Purpose: This study explores and presents empirical evidence on the influence of self-assessment of bank corporate governance and bank-specific factors on the financial performance of commercial banks in Indonesia. Methodology/approach: We conducted the study on 35 Indonesian public banks listed on the Indonesia Stock Exchange from 2017 to 2021. Using structural equation modeling, a thorough analysis was performed on a dataset of 160 observation samples that were carefully selected through purposive sampling. Findings: This study found that the implementation of corporate governance, which is proxied by the rating of self-assessment of corporate governance, and bank-specific factors significantly affect bank financial performance. The better the corporate governance self-assessment rating, the better the bank's financial performance. Other results indicate that bank-specific factors, as reflected by bank ownership, size, and diversification, significantly positively contribute to bank financial performance. Practical implications: This research aims to provide valuable insights that can support the Indonesian Financial Services Authority (OJK) in implementing effective corporate governance practices. It focuses on enhancing risk management, strengthening the bank's internal capacity, and ensuring compliance with regulations to promote best practices in bank management. Originality/value: This study provides new insight by examining the factors influencing financial performance in the banking sector, focusing on bank-specific factors and the regulatory aspects of Indonesian banking governance.

GLOBAL MONITORING OF FINANCIAL INDICATORS OF DEVELOPMENT AND INNOVATION AS A PREREQUISITE FOR WARNING OF FINANCIAL CRISES

Despite the existing developments that reveal the problems of the financial sector and financial innovations, it is worth focusing our research on such points. It is worth doing detailed monitoring of financial indicators at the level of many countries from different parts of the world, which reflect the state of financial innovation. In addition, a relevant study related to the monitoring of financial indicators is the analysis of indicators on which the stable development of society depends. It is also worth not only displaying the dynamics of financial indicators over a long period of time, but also trying to show the forecast values of such indicators in the coming years. It is this approach that will allow us to form a certain vision regarding the prevention of financial crises in the future. The article examines the indicators of net lending, gross debt and cyclically adjusted balance of payments of the countries for the period 2007-2024, and also indicates the corresponding forecast indicators for 2025-2027. The monitoring was carried out and the prospects for the development of the field of financial innovations for the countries for 2007-2027 were determined. We also investigated the need to track and understand current financial innovations that will allow us to counteract the manifestations of financial crises in the future. It was confirmed as a result of research into the state of innovation of individual states (in particular, the Fintech sphere) that precisely those countries that invest in the development of scientific and technical developments have the opportunity to develop the economy faster. It is established that the financial sector of innovation has changed significantly from the model of traditional corporate banks to powerful ecosystems of banking and non-banking markets. It has been confirmed that the prospects for the development of Blockchain technology in the field of finance are that such technology will allow the financial sector to further develop in the direction of security, stability and reliability, and therefore prevent the occurrence of financial crises in the future. It was revealed that financial innovations can exist and develop at the same time and other financial indicators can deteriorate (increase in debt and budget imbalance). Therefore, in order to understand and prevent crises, it is worth developing an appropriate level of tracking and forecasting the smallest changes in financial indicators at the global level.

An analysis of Indian banks' CSR initiatives

A corporation or organization can simply increase their goodwill in the marketplace by engaging in corporate social responsibility (CSR) activities. Upholding moral principles and benefiting society are the overarching goals of corporate social responsibility. CSR takes into account both internal and external elements in addition to the value for their customers. Businesses gain by contributing significantly to corporate social responsibility (CSR) in a number of ways, including enhanced funding availability, new opportunities, employee retention, stakeholder satisfaction, and brand image. As globalization accelerates, banks are becoming increasingly engaged in corporate social responsibility initiatives to broaden their clientele. The corporate social responsibility (CSR) programme of the Indian banking sector focuses on projects like health and medical care, rural area development, and poverty eradication. It also aims to address financial inclusion, provide financial services to support national investment, and promote the socio-economic development of the country. The Bank's corporate social responsibility endeavours are predominantly centred around environmental sustainability, Swachh Bharat Abhiyan, and educational initiatives such as Beti Bachao Beti Padhao Abhiyan, among numerous other projects. This study's goal is to evaluate the CSR programs that the banking sector has implemented. The bank's CSR report is the source of the data.

INTERNAL AUDIT FUNCTIONS DEVELOPMENT WITHIN BANKING CORPORATE RESPONSIBILITY

Commercial banks improve their competitive positions not only through efficient financial operations, but also through implemented social programs, as they seek to demonstrate to the public the performance of their public obligations. In this regard, the scope of functions of the bank's internal audit expands, as there is a need to monitor and evaluate not only the financial, but also the social activity results of the organization aimed at sustainable development. The article makes suggestions for the expansion of internal audit functions aimed at improving CSR accountability.

Integrated Multi-Income Stream Performance Dashboard: a Japanese Corporate Banking Case

In response to the complex operational challenges faced by Japanese Corporate Banking (JCB), arising from the coexistence of disparate core banking systems post-merger, this study aims to address inherent issues affecting marketing performance monitoring. The existing condition at JCB is characterized by data inconsistency, limited system interoperability, and fragmented income tracking through multiple Excel reports and management systems. Recognizing the gaps in the current setup, the research question revolves around how to enhance marketing performance monitoring effectively. The research objectives, therefore, encompass the development and implementation of a tailored integrated report utilizing the CRISP-DM methodology. This innovative performance dashboard harmoniously consolidates data from diverse sources, presenting a cohesive representation crucial for comprehensive marketing performance assessment. Leveraging advanced methodologies like data normalization and cross-platform integration, the research approach ensures streamlined income tracking, mitigating existing limitations. The data, drawn from various product applications, undergoes meticulous processing to facilitate a unified view on the integrated dashboard. The anticipated result is a significant improvement in monitoring efficiency, heightened data accuracy, and an empowered decision-making process within JCB's operations. The business implication of this initiative is the tangible enhancement of the bank's ability to comprehensively assess income performance, thereby elevating the quality of strategic decision-making and reinforcing JCB's competitive positioning in the banking sector.

An assessment of banking sector performance in Indonesia

Purpose: This study examines the effect of dividend pay-out ratio (DPR), total assets, and asset growth on banking company performance, measured by return on assets (ROA) and net profit margin (NPM). Research methodology: Using purposive sampling, we obtained 67 banking companies as samples, comprising 33 unlisted firms and 34 listed firms on the IDX. This study observed a 9-year period from 2011 to 2019; thus, the total sample comprises 603 firm-year observations. Linear regression analysis was used to analyze the data. Results: The results show that DPR and total assets, namely ROA and NPM, have a significant effect on the performance of banking companies. Asset growth had a significant effect on NPM. However, asset growth has no significant effect on ROA. Limitations: We acknowledge that we solely used a banking corporation in Indonesia. Nevertheless, to demonstrate the bigger picture of the study findings in terms of banking performance, further studies should employ banking corporations in all emerging countries. Contribution: The results enrich the theoretical knowledge about these factors in financial performance, particularly in the Indonesian banking industry. Practical Implications: Corporation management might consider this finding when making decisions regarding dividend ratios, asset size, and asset growth. Further, management needs to pay attention to these factors when planning business strategies and making decisions to achieve higher financial performance. Novelty: To the best of our knowledge, this is the first study to examine the relationship between DPR, total assets, and asset growth to performance that employs samples of the banking industry from listed and unlisted companies on the IDX.

Credit Scoring Modelling For Corporate Banking Institutions

This research aims to build a credit scoring modeling simulation of bank corporate loans. The credit scoring model is used in assessing creditworthiness in credit decisions. This model determines whether or not a company is eligible for the corporate credit facility it proposes. Observations were made of 100 companies included in the list of Kompas100 Index formers on the Indonesia Stock Exchange (IDX) that have the potential to apply for loans/credits to Bank Financial Institutions (IKB) in optimizing the corporate capital structure through bank debt facilities in the period 2022. Analysis was conducted on five financial aspects consisting of 14 research variables, including (i) liquidity aspects, including current ratio and quick ratio variables; (ii) solvency aspects, including debt asset ratio and equity ratio variables; (iii) profitability aspects including return on net assets, operating profit ratio, price to earnings ratio variables, (iv) activity aspects including total asset turnover, accounts receivable turnover, inventory turnover, current assets turnover, and (v) growth aspects including operating income growth rate, total assets growth rate, and operating profit growth rate variables. The analysis tool uses Logistic Regression through an assessment conducted on the company's credit rating as a proxy for the dependent variable, worth one if the credit application is feasible and worth 0 if the credit application is not feasible with a cut-off point of 0.5. The results show that credit scoring modeling for corporate credit is significantly formed from liquidity (CR) and solvency (DER) aspects. Out of 61 companies classified as not eligible for credit facilities, 58 companies were classified correctly, and out of 39 companies classified as eligible, 29 companies were classified correctly. The overall percentage shows 68.0, meaning that the logistic regression model has an accuracy of 68%.

Analisis Faktor Ukuran Perusahaan, Struktur Kepemilikan, dan Profitabilitas terhadap Ketepatan Waktu Pelaporan Keuangan

Those studies goals are designed to observe the factor evaluation of company size, ownership structure, and profitability on the time of financial reporting. Thisstudies is absolutely primarily based on financial statements of banking corporations listed to Indonesia stock exchange. A focused sampling method became used within the sampling of this examine. The records evaluation technique used on this examine is logistic regression evaluation. The statistics used on this examine had been received from secondary statistics in the form of annual accounts of organizations listed in Indonesia stock trading (IDX 2018-2020). The consequences of this examine imply that ownership structure has a positive and insignificant effect on financial reporting timeliness, even if company size and profitability have a positive and significant effect on financial reporting timeliness.
 Keywords: Size1; Ownership 2; Profitability3 ; On Timeliness 4

The impact of credit reforms on bank loans and firm leverage around the world

AbstractThis study examines how credit reforms impact commercial bank loans and nonfinancial firms' debt. Using two international samples for commercial banks and nonfinancial firms from 2004 to 2019, we find that global information‐sharing reforms encourage banks to increase corporate loans, thus improving firm debt financing, particularly in countries with weak creditor rights. Legal rights reforms significantly boost corporate bank loans in emerging countries and enhance firms' debt financing in developed countries. Our findings suggest credit reforms positively impact firms' financing; however, their effects on debt financing supply and demand vary by economic development level and the strength of creditor rights.

The financial stability of the banking sector: An empirical investigation using the CAMEL rating approach

The study compares the CAMEL ratings of five central Indian commercial banks over 12 years (2011–2022). The findings indicate that most banks received a rating of 1, with an average capital adequacy ratio (CAR) of 15.18 percent. Maintaining low non-performing loan (NPL) rates is a priority for Indian banks, as reflected in the average of 1.98 percent with a grade of 2. The research concludes that these banks are well-managed, showcasing an average operational efficiency/income ratio of 40 percent (rated 3), signifying good managerial efficiency. This suggests banks can meet short-term customer commitments and withdrawals adequately. Notably, State Bank of India (SBI) and Punjab National Bank (PNB) received a grade of 2, while Axis Bank, Industrial Credit and Investment Corporation of India (ICICI) Bank, and Housing Development Finance Corporation (HDFC) Bank scored a rating of 1. The study indicates that private sector banks outperform their public sector counterparts across all CAMEL model parameters, showcasing more robust performance metrics. The paper advises Indian banks to invest in the long run, watch their risks, and aim for steady growth and profit. The study emphasises the importance of capital, assets, and management for a healthy banking system, suggesting improvements in earnings and liquidity management for overall stability and growth.