Domestic Commercial Banks Research Articles

은행업 종사자의 직무수행능력이 잡크래프팅에 미치는 영향 : 자기개발욕구의 매개효과를 중심으로

This study aims to provide a direction for human resource management as part of the crisis response plan for the Korean banking industry in response to the rapidly changing industrial structure. The study aimed to verify the causal relationship between interpersonal skills and problem-solving skills among job performance abilities and job crafting among banking industry workers, and to examine the mediating effect of self-development desire between job performance abilities and job crafting. For this study, a questionnaire was administered to 260 employees of domestic commercial banks, and the collected survey data was analyzed using SPSS (Ver. 24.0). As a result of this analysis, first, the interpersonal skills of banking workers were found to have a positive (+) effect on job crafting, second, the problem-solving skills of banking workers were found to have a positive (+) effect on job crafting, third, the desire for self-development was found to have a significant complete mediating effect between interpersonal skills and job crafting, and fourth, the desire for self-development was found to have a significant partial mediating effect between problem-solving skills and job crafting. The implications of this study are as follows: First, it is necessary to enhance interpersonal skills and problem-solving skills, which are sub-components of the job performance ability of banking workers, and to promote job crafting to improve innovation and efficiency in the banking industry; second, it is necessary to strengthen the human resource capacity of the organization by providing self-development programs that improve interpersonal skills and problem-solving skills; and third, it is necessary to create an organizational culture that encourages employees to activate job crafting by enhancing the desire for voluntary self-development among banking workers, as job crafting can contribute not only to individual growth but also to innovation and performance improvement of the organization. This study has academic distinction in that it conducted research on job crafting by limiting the research subjects to banking workers, clarified the causal relationship between the research subjects’ job performance ability and job crafting, and verified the mediating effect of the desire for self-development between job performance ability and job crafting, thereby providing implications.

Operational efficiency in the presence of undesirable byproducts: an analysis of Indian banking sector under traditional and market-based banking framework

PurposeIn the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel.Design/methodology/approachUsing data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel.FindingsThe authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks’ strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks’ efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment.Originality/valueLiterature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study.

금융소비자의 고객지향성이 서비스품질과 고객만족에 미치는 영향에 관한 연구

This study attempted to examine how customer orientation affects service quality and customer satisfaction, respectively, based on recent changes in the financial industry, which is already rapidly changing to customer orientation. Through a review of prior research, a research model was derived to investigate the structural relationship of customer orientation on customer satisfaction through service quality in the financial industry. The empirical analysis was based on the data collected on the main customers of domestic commercial banks, and it was confirmed that customer orientation divided into two dimensions, positive and negative, had an impact on customer satisfaction through service quality (typicality, certainty, empathy, and responsiveness). In particular, in the case of positive customer orientation, it was confirmed that it had a significant effect on all four service quality, and it was empirically confirmed that negative customer orientation had an effect on confidence and responsiveness. In addition, it was confirmed that empathy and responsiveness among financial service quality based on customer orientation are variables that finally have a significant impact on customer satisfaction. Based on the results of this analysis, this study confirmed that customer orientation in the financial sector is an important factor influencing service quality and customer satisfaction, and based on this, empirical and strategic implications for financial companies to secure a continuous and long-term competitive advantage were proposed.

Ownership Structure, Firm Size and the Operational Risk Management of Domestic Commercial Banks in Sri Lanka

Purpose: The banking sector is a crucial player in any economy, often affected by economic and social crises. Thus, it is vital to identify the intrinsic weaknesses of banks to manage their operational risk. The recent COVID-19 pandemic also severely affects the global financial sector, irrespective of the development status. Accordingly, this study is an attempt to find out the evidence on operational risk management and its relationship with bank size and ownership structure of the banking sector in one of the developing countries in the world, Sri Lanka.Design/Methodology/Approach: Financial data of eight out of thirteen commercial banks in Sri Lanka were analyzed over 13 years using panel data regression analysis. Sri Lankan banks' operational risk management practices are measured by excess capital (over the required minimum capital for operational risk). Deposits plus advances are used to calculate the size of a bank.Findings: It is revealed a significant positive relationship between firm size and operational risk management. A significant relationship between the ownership and excess capital held by banks for managing operational risk is also identified. This result leads to the conclusion that the larger commercial banks hold higher excess capital over the required minimum as per Basel accords. Moreover, government-owned banks are recognized to have more excess capital for operational risk management.Implications: Given the high amount of losses from bad loans and the central bank's implementation of Basel III regulations, the study has implications for Sri Lankan banks.Originality: When considering Sri Lankan context there can be found only a little amount of evidence on operational risk management practices and its relationship with size and ownership.

ФІНАНСОВА СТІЙКІСТЬ КОМЕРЦІЙНОГО БАНКУ ЯК НЕОБХІДНА УМОВА ЙОГО ЕФЕКТИВНОГО ФУНКЦІОНУВАННЯ

Financial stability is one of the prerequisites for the effective functioning of the financial market and its participants in today's turbulent conditions. Within the framework of a commercial bank, financial stability means the bank's constant ability to meet its obligations and ensure profitability at a level sufficient for normal functioning in a competitive environment, as well as ensure purposeful development by transforming resources and minimizing risks, withstanding the influence of external and internal environmental factors. The work examines the content and components of financial stability on the example of a commercial bank, and evaluates the factors affecting it. In order to identify the means of its provision, an assessment of financial activity indicators of JSC "Credit Agricole Bank" was carried out. As a result of the analysis of financial reporting indicators, the satisfactory financial condition of JSC "Credit Agricole Bank" was determined, the basic indicators are within the normative values, but due to the high sensitivity to risks, they are unstable. It is noticeable that before the realization of the risk of a full-scale Russian invasion, all indicators of the bank show consistently high values. The assessment of financial stability through the application of a set of analytical techniques made it possible to identify and evaluate the influence of factors and justify management decisions based on the obtained data. Proposed measures to ensure financial stability in the current conditions, which include: maintaining the stability of the resource base of the banking institution, balanced asset management, timely recognition, proper risk management with the aim of eliminating or limiting them are necessary indicators of maintaining the stable activity of a commercial bank in the war period, taking into account the risk its duration and the post-war reconstruction of Ukraine's economy. Strengthening the financial stability of domestic commercial banks and the banking system in general is facilitated by regulatory measures: stress testing and a wide range of NBU macroprudential policy instruments.

Impact of Third-Party Payment on Commercial Banks' Intermediary Business and Empirical Analysis

This paper describes the impact of third-party payments on commercial banks' intermediary business, and collates the relevant data of third-party payments and commercial banks' intermediary business, and makes an empirical analysis for the impact of third-party payments on commercial banks' intermediary business during 2016-2020, and conducts a panel data regression on the top ten domestic commercial banks by analyzing the type of data, and arrives at the result that third-party payments have an inverse relationship with commercial banks' intermediary business.

Retail lending to commercial banks: current state and business models of development

This article explores the current state of consumer bank lending, focusing on the quantitative and qualitative indicators of the banking sector, the ecosystems of commercial banks. In the course of the study, statistical data on the loan portfolio and overdue debts of the banking sector of the Republic of Kazakhstan, on the structure of overdue debts on bank retail loans issued for consumer purposes were used and analyzed. The tendencies of bank consumer crediting by the terms and sizes of the lending rate are determined. The influencing factors on consumer-clients in retail lending have been established, and monitoring of the ecosystems of leading domestic commercial banks has been prepared. Based on the analysis of the current state of retail lending for consumer purposes in Kazakhstan, relevant recommendations are given

Evaluation of financial strength of joint venture commercial banks and domestic commercial banks in nepal: using camels framework

This study aims to compare the financial strength of joint venture and domestic commercial banks in Nepal using data from mid-July 2011/2012 to mid-July 2019/2020. The financial strength analysis is based on the CAMELS (capital adequacy, asset quality, management quality, earning performance, liquidity, and sensitivity to market risk) framework. A descriptive research design has been used. This paper finds that Nepalese joint venture banks are financially sound with higher asset quality, management quality, earning performance, and liquidity than Nepalese domestic banks. Nepalese joint venture banks can cash in on higher IT infrastructure or better investment culture from its foreign collaboration and thus perform better compared to domestic commercial banks.

Trial Analysis of the Development of China’s Commercial Banks’ Wealth Management Business and Its Countermeasures

In recent years, China’s economy has been developing rapidly, and domestic investors’ concept of financial management has been increasing, as well as the demand for financial products. Domestic commercial banks have continuously responded to this phenomenon by continuously launching new wealth management products and enriching the number of wealth management products, and the Chinese wealth management market has successfully stepped into a stage of rapid development. In April 2018, the People’s Bank of China came out with new regulations on asset management to support foreign legal financial institutions to enter the Chinese market, which is not only conducive to learning from foreign advanced experience, but also promotes the healthy and sustainable development of the domestic financial market, and Chinese commercial banks’ wealth management business is facing new development opportunities. As an important intermediary business of banks, the development of banks’ wealth management activities generally reflects the trend of continuous enrichment of investment varieties and expansion of financial market scale, and while it plays a positive role in broadening investment channels and improving business models, there are also many problems. This paper analyzes the development status and problems of commercial banks’ wealth management business with a view to providing some policy suggestions to commercial banks, investors and regulators.

Credit Quality of Indian Banking Sector: Implications of Basel III Regulations

ABSTRACT In the last few years, due to a drastic increase in bad loans, the credit quality of banks has degraded in India. Along with national policies designed by banking regulator Reserve Bank of India (RBI) for management of credit quality, international best practices have also been implemented by the banking institutions. The Basel Accords proposed by the Basel committee have been provided for strengthening the banking sector and making it more resilient to any economic or financial shocks. Thus, the present study has been carried out with the objective to analyze the association between the recommendations of the most recent Accord by the Basel committee, that is, Basel III, and the credit quality of Indian banking industry. The study has undertaken a sample of 37 domestic commercial banks, examined over a time frame of 5 years (2015–2019). In order to address the endogeneity issue between capital regulations and credit quality representative, non-performing assets (NPA), the two-step system generalized method of moments has been applied for the purpose of regression analysis. The study has found that stringent capital requirements imposed by RBI are helpful in improving the credit quality of banks by reducing NPA. The results have further shown that the non-risk-based leverage ratio brings additional bad loans and, thus, bears an adverse influence on the asset quality of banks. The liquidity risk measure provided by Basel III, liquidity coverage ratio, does not carry any significant impact on NPA of domestic Indian banks. Results of the present study have implications for policymakers and bank management. Iinvestors can also benefit from the study. They can take the results presented on which banks are expected to be faced with a higher credit risk in future and the banking entities holding higher capital buffers which can protect the institutions from future loan losses.

Understanding Bank Deposit Growth during the COVID-19 Pandemic

A notable development in the U.S. banking system following the onset of the COVID-19 pandemic has been the rapid and sustained growth in aggregate bank deposits. Total deposits at domestic commercial banks rose by more than 35 percent since the end of 2019 and stood at around $18 trillion as of the fourth quarter of 2021.

Evaluation of Commercial Banks' Comprehensive Competitiveness Based on Multivariate Statistical Analysis

This paper selects 13 domestic commercial banks as representatives, takes the relevant index data of each bank as the research object, and uses SPSS statistical analysis tools for factor analysis and cluster analysis. Based on the ranking of comprehensive factor scores and the classification of cluster analysis, the comprehensive competitiveness of each commercial bank was discussed comprehensively.

Analysis on Risk Control of International Settlement of Domestic Commercial Banks under New Situation

Analysis on Risk Control of International Settlement of Domestic Commercial Banks under New Situation

Current state and ways to improve the efficiency of investment activities of domestic banks

Subject of research is the current state of activity of domestic banks of Ukraine and ways of their effective investment activities. The purpose of the article is to study and characterize the ways of effective management of the bank's investment strategy. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general science, special methods of scientific knowledge and other research methods. Study results. Credit institutions in world practice are a significant segment of the investment market and play a significant role in this process. One of the components of effective management of a modern banking institution is the implementation of effective investment activities, which requires the selection of an effective investment strategy. The imbalance of domestic banking processes, as shown by domestic and international practice, is often the main prerequisite for the development of a crisis situation in an individual bank, is a threat to the stable development of the banking sector as a whole. One of the main problems in the functioning of domestic commercial banks is the instability of the economic situation in the country, namely declining GDP growth, inflation and devaluation of the national currency, which in turn led to the outflow of bank deposits, bankruptcy of many commercial banks in Ukraine. Covid-19. Over the past year, Ukrainian commercial banks have allocated about 17% of total bank assets to invest in securities. For many years, there has been a negative decline in the share of the banking sector in investing in securities, but there has been an increase in total assets of banks in Ukraine. In addition, the positive point is the increase in the share of investments in securities in the total assets of banks over the past two years, namely from 13.97% in 2020 to 16.88% in 2021. The strategy of the bank's investment activity is an integral interconnected structured complex (system) of consecutive actions (balanced management decisions) under resource constraints, which is aimed at forming long-term effective investment activities of the bank, strengthening the bank's competitive position in the investment market. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, in the activities of banking institutions, as well as in higher education institutions in teaching economic disciplines. Conclusions. Thus, there is an extremely high degree of risk in the activities of commercial banks, and managerial errors can lead to the most serious consequences - so effective management for commercial banks becomes especially important. However, the key components of the theory of banking management are still poorly implemented in the practice of most domestic commercial banks. This also applies to the aspect of this theory, which is related to the management of the investment banking portfolio. Thus, the adaptation of the theory of investment portfolio management of commercial banks to the specifics of the Ukrainian economy is an unalterable necessity.

Analysis on the factors influencing the profitability of city commercial banks

With the slowdown of China's economic growth, the accelerated reform of interest rate marketization, the increasingly intensified trend of financial disintermediation, under the background of downward pressure on the economy, the business activities of urban commercial banks are facing a severe form. Compared with other domestic commercial banks, China's urban commercial banks have significant differences in profitability due to history, operation and management ability, local environment and other reasons. Therefore, it is a topic of strong theoretical and practical significance to explore which specific factors will affect the profitability of urban commercial banks and the extent of the impact. Factors influencing the city commercial bank profitability can be divided into internal and external, this paper assumes that the degree of assets, the credit ratio, capital strength, degree of non-interest income growth, operational efficiency and credit risk is the internal factors affect the profitability of the, while the external factors for economic development degree and the diversity of market demand. Based on the balance panel data of 10 urban commercial banks from 2013 to 2017, this paper conducts empirical analysis to verify the impact of various factors on the profitability of urban commercial banks. Based on the empirical research conclusions on the factors affecting the profitability of relevant sample city commercial banks, this paper puts forward strategies to improve the profitability of city commercial banks from five aspects: capital strength, cost management, credit risk, characteristic operation and regional economy.

The Impact of Liberalization on Determinants of Bank Efficiency: Evidence from Malaysian Commercial Banks

This paper aims to examine the impact of liberalization in 2009 on the determinants of bank efficiency in Malaysia by employing a two-stage approach within the context of the growing number of foreign commercial banks. Commercial banks can play a vital role in the internationalization and diversification of Malaysia's financial sector. In the initial stage, measuring the efficiency score of 19 commercial banks throughout 2008 to 2019 by using the Data Envelopment Analysis (DEA). Multivariate panel regressions were then used to determine the impact of liberalization on the determinants of bank efficiency in 2009. As a result, domestic commercial banks seem to be more competitive than their foreign counterparts. The findings signify that bank size, market power, capitalization, and liquidity all have a positive impact on technical efficiency. However, credit risk, bank diversification, and inflation all have a negative impact. The control of the effects of liberalization, bank size, capitalization, bank’s market power, and liquidity remain positive. However, bank diversification and inflation flip negative to positive, whereas credit risk becomes less explanatory. The findings will provide bank stakeholders, regulators, investors, and regulators with important insights into the impact of liberalization measures on bank efficiency and its determinants.

On the Risk Control of Financial Derivatives

financial derivatives entered China in the 1990s. Because of its function of avoiding risk and creating income, it is gradually widely used by domestic commercial banks. However, financial derivatives are intertemporal, linked and leveraged, resulting in risks when used. Therefore, it is of great significance to study the risk control of financial derivatives. This paper discusses the risk control of financial derivatives based on the financial derivatives business of commercial banks. Firstly, it analyzes the scale of financial derivatives business of commercial banks, then puts forward the problems existing in the risk control of financial derivatives business of commercial banks, and finally puts forward some suggestions on the risk control of financial derivatives business of commercial banks.

A Study on the New Roles of China’s Commercial Banks in the Construction of Digital Government

Digital government is a new government operation mode supported by the new generation of information technology, which is based on the reconstruction of e-government and the integration of intelligent technology. In terms of the relationship between economic foundation and superstructure, digital government is an inevitable requirement and adaptation form for the development of digital economy. As an important participant of digital economy, commercial banks play an active role in promoting the construction of digital government. This paper focuses on the new roles of commercial bank of China in the construction of digital government, namely the integrator of digital government scenario extension, the promoter of digital government platform application and the partaker of cost-sharing for digital government construction. Based on the relationship between banks and governments in the new era, the paper also briefly analyzes the driving force and innovative development path of domestic commercial banks in digital construction.

Does green finance matter for sustainable entrepreneurship and environmental corporate social responsibility during COVID-19?

PurposeThe discourse aimed to investigate green finance practices under the assumptions of several notable climate advisors and speculators in Asia and particularly in Southeast Asia. The study intrigues by considering financial specialists to vent government spending on green restoration plans leading toward green bankable venture openings for the public and private sector. This section distinguishes a few of the green fund components and approaches that can be joined by national and neighborhood governments, essentially in Southeast Asia, into their post-COVID-19 techniques, but are too valuable inputs for domestic commercial banks and private corporates.Design/methodology/approachIt can be defined as a functional type for Cobb Douglas development. ARDL technology is a way of calculating complex forces at the classification level at long-term and short-term stages. This ARDL approach has many advantages and can be implemented when incorporated in level I (0) and level I first (1) with the original variable. Still, it offers robust ability to the outcomes and standardizes the lag, considering the number and sample size used. Pooled mean group (PMG) method is becoming a convenient technique for monitoring data over the period and a good approach for energy impact panels – growth ties for creating links between energy emissions and environmental sustainability and businesses in the nation.FindingsThere is a positive partnership between creativity and a sustainable world. Corporations are recommended to uphold the principles of CSR in the development process by introducing environmentally friendly advanced technologies. The main objectives of corporate social responsibility (CSR) are economic growth, environmental sustainability and social justice. Several programs have been established to expand businesses' responsibilities to improve their confessions in sustainable growth. SMEs are a primary source of production of innovative products and technologies. The key concerns of stakeholders and politicians in the new competitive business climate are the protection of environmental sustainability and social responsibility, recognizing factors driving economic development for SMEs.Originality/valueDuring the COVID-19 era, the prime responsibility of pandemic confronting governments is to spend on help activities (that have been started in earlier phase) and recovery endeavors (yet to start in the situation). Therefore, the governments may devise policies to pool resources from commercial, private, public-private partnerships and other capital market sources. With rising hazard recognitions particularly emerging from at-threat income projections, governments ought to make the correct mechanisms and instruments that can perform this catalytic part of derisking and drawing in such capital. This too can be an opportunity for governments to enhance and execute such financial instruments that offer assistance, quicken their commitments to climate alter beneath the Paris Agreement and the sustainable development goals (SDGs), and thus “build back better” is being progressively voiced over the world.

A Study on the Operational Factors of Case Study for INTENALIZATION in the Business Continuity Management System in Commercial Bank

Purpose: This paper aims to investigate the relation between BCMS operating factors and organization inter-nalization. To achieve the purpose of this study, the followings detailed objectives are established. First, the dif-ferences are clarified through comparative analysis by investigating the operating status of the BCMS of domestic commercial banks according to the Financial Supervisory Service s BCP standards. Second, the operating factors are analyzed and organized to see if they affect the internalization of each bank s BCMS organization in the BCMS operation process. Third, to examine the methodology of organizational internalization of the bank BCMS, in-depth interviews are conducted with the relevant expert group, and the methodology of organizational internal-ization of the banking BCMS is proposed. Method: In order to study the operating factors for internalization of BCMS in organization, the author inves-tigated BCP operating level by comparison analysis the BCMS status quo of the four commercial Banks in Korea. The operating factors identified as scope of this study are BIA(Business Impact Analysis), RA(Risk Assessment), Business Management Strategy and BCP exercise, In addition, an FGI(Focus Group Interview) was conducted for BCM experts to study the methodology for raising the level of organizational internalization of BCMS. The FGI conducted qualitative surveys through in-depth interviews with the experts. Results: The operating way for BCP exercise, cycle and exercise types etc, are the factors to impact the level of BCMS organization internalization. The author derived the methodology for the BCMS internalization to the Bank, it is considered in terms of education and training for staffs, activation of communication between organ-izations and individuals, BCMS operating standards in detailed level to avoid any doubts in BCM operation and organizational culture. Conclusion: The author reached the conclusion that organization need to enhance the cognitive level of the members through education/BCP exercise, activated communication, operating detailed BCP procedure, interest and participation of top-management and establishment organization’s culture which respect the BCM, espe-cially in order to form an organizational culture, mutual respect and the formation of a trust relationship are continuously needed since culture is not formed in short period of time.