Financial Performance Of Commercial Banks Research Articles

Evaluation of Financial Performance of Banking Sector in India – A Camel Approach

Purpose: The study examines the financial performances of selected Public Sector Undertaking Banks (PSUB) and Private Sector Banks (PSB). Furthermore, this study examines banks' efficiency concerning various financial aspects such as stability, liquidity, and profitability and their impact on financial performance.
 
 Theoretical framework: Numerous studies have been conducted to evaluate the financial performance of commercial banks. But after the COVID pandemic, only a few studies were conducted on the performance of banks. However, there is still much to assess regarding the comparative financial performance of public and private sector banks in India.
 
 Design/methodology/approach: The study of financial performance of banks conducted on six PSUB and six PSB are selected based on advances as a percentage of deposits with the top three and bottom three banks from the PSUB and PSB. This research compares PSUB to PSB using a T-test for independent samples. The data is collected from secondary sources gathered from annual and RBI annual reports from 2017 to 2021.
 
 Findings: Results from a comparison test show that, even though PSUB has made a lot of progress, they are still not performing up to the standard that PSB set. According to the report, PSB outperformed PSUB in the areas of CAR, NPA to NA, PPE, ROA, and liquid assets to total deposits concerning the CAMEL approach.
 
 Research, Practical & Social implications: Future studies can consider other indicators of CAMEL components, like the percentage of gross NPA, net profit margin, interest income to total funds, operating expenses to total funds, credit deposit ratio, cash to deposit ratio, and some other samples of banks, to assess the financial performance of banks.
 
 Originality/value: This research focuses on the financial performances of selected PSUBs and PSBs. The findings of this scholarly article state that the performances of the PSBs are the best, which means the PSUBs are lacking towards the customers in their performances. This research may be helpful to the policymakers in the PSUBs to identify their problems and rectify them.

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Purpose of the study: The purpose of the study was to discuss the impact of the TOE factors on FinTech Adoption and Financial Performance and the role of organizational readiness as moderation in Jordanian commercial banks. Theoretical framework: In order to examine how to embrace Fintech and its effects on Financial Performance, this study provides an enhanced technology acceptance model (TOE) that includes relative advantage, top management support, competitive pressure, and technological compatibility. Method: A questionnaire that we created and distributed to bank managers, department heads, and supervisors working for Jordanian commercial banks yielded 215 valid replies. To test the hypotheses, we used a structural equation model (SEM) to analyze the data and examine the correlations between all latent variables. Results and conclusion: The results reveal that a positive and significant relationship between Relative Advantage, Top Management Support, and Competitive Pressure on Fintech Adoption and technological compatibility has an insignificant effect on Fintech Adoption, Also showed a positive and significant relationship between Fintech Adoption and Financial Performance. The significant moderating positive effect of organizational readiness on the relationship between Technological Compatibility and Competitive Pressure and Fintech Adoption. This study also shows that does not have a significant moderating positive effect of organizational readiness on the relationship between Relative Advantage, Top Management Support, and Fintech Adoption. Search implications: The study's findings imply the need for further research and exploration into FinTech Adoption to improve the financial performance of commercial banks to remain competitive in the market. Originality value: This research contributes to integrating the adoption of Fintech's trust with TOE, this study adds to the body of knowledge on the usage of Fintech in banks by offering a more thorough understanding of the factors that influence users' views.

The Moderation of Organizational Readiness on the Relationship Between Toe Factors and Fintech Adoption and Financial Performance

Purpose of the study: The purpose of the study was to discuss the impact of the TOE factors on FinTech Adoption and Financial Performance and the role of organizational readiness as moderation in Jordanian commercial banks.
 
 Theoretical framework: In order to examine how to embrace Fintech and its effects on Financial Performance, this study provides an enhanced technology acceptance model (TOE) that includes relative advantage, top management support, competitive pressure, and technological compatibility.
 
 Method: A questionnaire that we created and distributed to bank managers, department heads, and supervisors working for Jordanian commercial banks yielded 215 valid replies. To test the hypotheses, we used a structural equation model (SEM) to analyze the data and examine the correlations between all latent variables.
 
 Results and conclusion: The results reveal that a positive and significant relationship between Relative Advantage, Top Management Support, and Competitive Pressure on Fintech Adoption and technological compatibility has an insignificant effect on Fintech Adoption, Also showed a positive and significant relationship between Fintech Adoption and Financial Performance. The significant moderating positive effect of organizational readiness on the relationship between Technological Compatibility and Competitive Pressure and Fintech Adoption. This study also shows that does not have a significant moderating positive effect of organizational readiness on the relationship between Relative Advantage, Top Management Support, and Fintech Adoption.
 
 Search implications: The study's findings imply the need for further research and exploration into FinTech Adoption to improve the financial performance of commercial banks to remain competitive in the market.
 Originality value: This research contributes to integrating the adoption of Fintech's trust with TOE, this study adds to the body of knowledge on the usage of Fintech in banks by offering a more thorough understanding of the factors that influence users' views.

The Impact of Financial Technology on Commercial Banks: A Case Study of China

The aim of the research was to investigate the impact of financial technology on the financial performance of commercial banks. in China. Based on previous literature review and empirical evidence this study collects the annual financial data on local banks in China. A total of 23 commercial banks were used as sample of the study. The annual data ranges from 2011 to 2020. The data was analysed using GMM dynamic panel data model. Based on the analysis, the findings showed that financial technology has an overall positive impact on the return on asset of commercial banks.

EFFECT OF MORTGAGE FINANCING ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

<p>The financial performance of commercial banks has been unstable as evidenced in Annual Supervision Report of 2011 to 2020, where the Return on Assets (ROA) rose to 6.2% in 2012 from 3% in 2011; and to below 3% in the years 2016 to 2020. Literature reveals that commercial banks’ lending criteria are pro-cyclical, implying a less strict lending criteria during the real estate boom, and very strict during burst; resulting in likely underestimation of the default risk on loans during periods of high demand by the commercial banks. The objective of the study was to establish the effect of mortgage financing on the n financial performance of commercial banks in Kenya for the period 2015 to 2022. Using secondary balanced panel data from 27 mortgage-offering banks in Kenya, with 189 data points and employing moderated multiple regression to achieve the study objectives. The regression analysis revealed that the independent variables explained 86.69% (R<sup>2 </sup>= 0.8669, p-value = 0004) of variance in of financial performance of commercial banks in Kenya, the coefficient of mortgage financing is 0.004434, (p=0.0004); implying that a unit increase in mortgage loan would result to significant increase in the return on assets by 0.004434 units. Therefore, the null hypothesis was rejected. The study concluded that an increase in the amount of mortgage loans offered as well as other activities that augment the total value of mortgage loans extended by the commercial banks leads to a significant improvement in the financial performance of commercial banks in Kenya. The study recommends that commercial banks in Kenya should target to increase the amount of mortgage offered as well as other activities that augment the total value of mortgage loans extended in order to improve their financial performance.</p><p><strong> </strong></p><p><strong>JEL</strong>: D10; D14; G21</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0081/a.php" alt="Hit counter" /></p>

Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya

The management of liquidity risk in commercial banks determines the banks' financial performance, which predominantly influences the quality of the loan portfolio and the nature of credit administration programs as a whole. By ensuring that liquidity risk is effectively managed, the primary objective of liquidity risk management is to generate a high-quality, stable, large, and growing flow of net interest income for banks. This objective is achieved by ensuring that banks can meet the needs of their customers. This study determined the effect of liquidity risk management on the financial performance of Kenyan commercial banks. The investigation was founded on the theory of liquidity management shiftability. The paradigm of Positivism served as the philosophical foundation for the investigation. The study incorporated both explanatory and longitudinal research designs into its methodology. The study's target population consisted of 32 Commercial Banks in Kenya. The study utilized panel data consisting of time series and cross-sectional data spanning a decade from 2010 to 2019. Using Eviews, descriptive and inferential statistics were used to analyze the collected data, which was then presented in tables and figures. The study found out that Liquidity risk management had an insignificant negative relationship with ROE (F=0.583912, p<0.05) and ROA (F=2.770410, p<0.05). Arising from the study findings, it is observed that liquidity risk management has a negative effect on financial performance measure either in ROA or ROE, it is recommended that commercial banks should keep this parameter as minimum as possible so as not involve in loss making undertakings.

Assessing the Impact of Liquidity Ratio Requirements on the Financial Performance of Commercial Banks in Kenya

In practice, some commercial banks in Kenya are presently facing liquidity challenges for instance the National Bank, Consolidated Bank, and Development Bank of Kenya. For instance, as of December 2017, the Development Bank of Kenya posted a negative liquidity position at 21.6% against the required legal threshold of 20%. For the National Bank of Kenya, the close of 2017 saw the total deposit liability standing at negative 5.5%, while core capital to total assets averaged negative 7.9%. As of 2018, NBK registered a drop in profit by 84% to stand at Kshs. 21.97 billion. The findings were that liquidity ratio requirements (β=0.345, p<0.05); cash reserve ratio requirement β=-0.008, p<0.05); loan deposit ratio requirement (β=-0.020, p<0.05) & capital adequacy ratio requirement (β=0.032, p<0.05) are significant predictors of financial performance of commercial banks in Kenya. The study concludes that liquidity requirements are a significant predictor of the financial performance of commercial banks in Kenya. The study recommends that finance managers of commercial banks in Kenya should strive to balance current assets and current liabilities to ensure they meet their obligations as they arise. The marketing managers of commercial banks in Kenya should invest more efforts in acquiring more customers for increased mobilisation of deposits. The loan officers and credit managers working in the commercial banks in Kenya should speed up the process of credit appraisal of customer loan application process to increase the uptake of loans which are key sources of interest income to these institutions. The shareholders of the commercial banks in Kenya should ensure that their institutions are adequately capitalised so that they are able to withstand inherent shocks occasioned by liquidity constraints likely to negatively impact financial performance. The findings are expected to shed more light on the critical role played by liquidity requirements as far as financial stability and resilience of the banking sector in Kenya are concerned

An Empirical Assessment of the Determinants of Financial Performance of Commercial Banks in Afghanistan

The primary aim of the current paper is to gauge the impact of bank-specific/internal, and macroeconomic/external factors on the financial performance of Afghanistan’s commercial banks. For this purpose, data from 16 commercial banks was employed ranging from a time series from 2007 – 2016. The study is limited by the availability of recent data. This study employs the random effects model. This model is chosen using the Hausman test, which rendered random effects as the optimal technique for this study. Banking performance is gauged using return on assets (ROA) and net interest margin (NIM) assumed to be the functions of salient internal and external factors. This paper finds that capital adequacy and asset quality positively influence NIM, while inflation and GDP exert negative impacts on it. Likewise, ROA is positively influenced by capital adequacy, asset quality, liquidity management, & GDP. Conversely, management efficiency negatively affects ROA. These finds indicate that banks can greatly enhance their profits by improving management and decreasing the credit/asset ratio. This indicates a strong influence of internal factors on Afghanistan’s commercial banks.

Credit Management Practices and Financial Performance of Commercial Banks in Rwanda: A Case of Access Bank Plc

This paper examined the effect of credit management practices on financial performance of commercial banks in Rwanda with reference of Access Bank Plc. The specific objectives are to assess the effect of credit rating on performance of Access Bank Plc, to determine the effect of credit monitoring on performance of Access Bank Plc and to examine the effect of credit recovery on performance of Access Bank Plc. The researcher used liquidity theory of credit and the information theory of credit. The study used descriptive and correlational research design. The target population was 164 employees of Access Bank Plc. The study collected data from a sample size of 116 employees of Access Bank Plc at Head office in Kigali City. It used questionnaire and financial statements of Access Bank Plc to collect data and descriptive statistics and multiple regression model to analyse data. Descriptive statistics such as mean, frequency and standard deviation was used. The multiple regression analysis was use to assess the effects of multiple predictor variables on the dependent measure. Results from the first objective show that that access bank assessment of the capacity to pay loan was strongly agreed by 44.7% was used as a credit rating component at Access Bank Plc. Access Bank has used credit reference report as strongly agreed by 30.1% .Results from the second objective indicated that credit term was adopted as strongly agreed by 54.4%, credit standards as strongly agreed by 36.9 %, 40.8%, credit limits, 30.1% strongly agreed. Results to the third objective show models of loan repayment platform demonstrated that 53.4% of respondents strongly agreed with the statements. Therefore, 44.7 strongly agreed that the Access bank is continually assessment as 33.0%. Results 54.9% strongly agreed with legal enforcements. The study recommended that researcher’s asses this factors impact on credit management practices, its execution and financial performance. Keywords: Credit management, Credit Policies, Credit monitoring, debt recovery, financial performance

Effect of Financial Technology on Financial Performance of Commercial Banks in Kenya

Performance in the financial markets is an essential component in the study of finance. Over the last decade, Kenya's commercial banks have increased their use of different types of financial technology (2011-2021). Mobile banking, agency banking, internet banking, and automated teller machines are just some of the various forms of financial technology available today. The purpose of this study was to evaluate the impact that financial technology has had, if any, on the overall financial performance of commercial banks in Kenya. The specific goals were to establish the effect of mobile banking on financial performance; to determine the effect of internet banking on financial performance; to determine the effect of agency banking on financial performance; to determine the effect of ATMs on financial performance; and to establish the moderating role of bank size on the relationship between financial technology and the financial performance of commercial banks. The research was predicated on the technological adoption model, the financial intermediation theory, the diffusion of innovation theory, and the profit maximization theory. The positivist research philosophy was used for this study, and a panel longitudinal research methodology was used for the research. The population of the study was the 38 commercial banks that have been in continuous operation throughout the last decade. The study was a census. Secondary information was gathered on an annual basis, and it covered a span of ten years (January 2012 to December 2021). The data was evaluated making use of descriptive statistics as well as inferential statistics entailing correlation and panel multiple linear regression analysis. The current research conclusions revealed that financial technology fairly explains financial performance and the current research discoveries also revealed that the financial technology is sufficient in predicting financial performance. Additional study findings were that mobile banking, internet banking, agency banking, adoption of ATMs, and bank size had positive significant correlations with financial performance. Moreover, findings were that adoption of ATMs had a significant negative link with financial performance. Meanwhile, mobile banking and agency banking had negative insignificant link with financial performance. Finally, both internet banking and bank size had a positive insignificant relationship with financial performance. Policy recommendations to the government officials and policy formulators in the Treasury and the CBK to not mainly advocate for financial technology policy as a means of boosting bank financial performance and it is recommended to the policy makers to utilize other policies when aiming to boost bank financial performance. Recommendations are also generated to the bank management and consultants not to mainly consider financial technology will significantly boost the banks’ financial performance. Keywords: Financial Technology, Financial Performance, ATM, Mobile banking, Internet banking, Agency Banking

Effect of Internal Audit on Financial Performance of Commercial Banks Listed in Nairobi Securities Exchange, in Nairobi County, Kenya

The recent collapse of major commercial banks in Kenya, including Imperial and Chase bank, which are currently under receivership, has raised concerns about the effectiveness of their audit practices in ensuring stability and improved financial performance. These failures have put pressure on commercial banks to reconsider how they align their internal audit processes to ensure stability and financial improvement. Consequently, this study aimed to assess the impact of internal audit on the financial performance of commercial banks listed on the Nairobi Securities Exchange (NSE). The study was guided by reliability theory. Using a descriptive survey design, the target population consisted of 10 commercial banks listed on the NSE. The unit of observation included 86 respondents from various roles within these banks, such as senior finance managers, credit managers, operations managers, risk managers, and internal auditors. Both primary and secondary data were utilized in the study. Primary data on internal audit practices were collected through a semi-structured questionnaire employing a Likert-type scale, while secondary data on the financial performance of the commercial banks were obtained from their audited financial reports. The gathered questionnaire data were quantitatively analyzed using SPSS software, incorporating descriptive statistics (mean and standard deviation) as well as inferential statistics, specifically regression coefficients and bivariate correlation, to examine the relationship between the dependent and independent variables. The study's findings revealed a significant relationship between internal audit, asset safeguarding, risk management, compliance with laws, and the dependent variables, which included return on assets, net income, and liquidity. These relationships were evident from the regression analysis conducted. Consequently, the study concluded that internal audit systems have an impact on the financial performance of commercial banks. The study recommends that commercial banks listed on the NSE reassess their internal audit systems and strengthen any identified weaknesses to enhance their financial performance. Furthermore, the study suggests that future research could explore the effects of new banking regulations, such as Basel Accord III, on the financial performance of commercial banks.

Efficient Use of Electronic Banking and Financial Performance of Commercial Banks in Rwanda: A Case of Equity Bank Plc

This general objective was to examine effect of efficient use of electronic banking on financial performance of commercial banks with reference to Equity Bank Plc. The specific objectives of the study were to assess effect of internet banking on financial performance of commercial banks in Rwanda; to ascertain effect of Debit and credit cards on financial performance of commercial banks in Rwanda Equity Bank Plc in Rwanda and to establish effect of mobile banking on financial performance of commercial performance in Rwanda. This study is significant as the findings will providing information on influence of electronic banking and financial performance for banking institutions in Rwanda also the finding will help researchers interested in carrying out further studies in this field. This study used descriptive and coefficient regression size effect between variables and for each objective whereby the target population was 370, while a sample size was 193 calculated using Yamane formula obtained using simple random technique. Questionnaire and interview used as a data collection instruments. Data analysis methods were descriptive and multiple regression for quantitative results while content analysis was used for information from interview. After collecting data, analyzing and interpreting data, the study findings showed that Adjusted R Square shows that internet banking, using debits and credits cards and mobile banking contributes up to 87.2% to financial performance of commercial banks in Rwanda and there is a positive and strong correlation between dependent and independent variables whereby internet banking has 0.7742 correlation with financial performance. Credits and Debits cards has 0.812 correlation with financial performance. Mobile banking has 0.967 correction with financial performance. The study recommended that to maximize the influence of easy fund transfer using digital banking on financial performance, banks should prioritize user-friendly and intuitive digital banking interfaces. They should invest in robust security measures to protect customer information and transaction integrity. Regular monitoring, maintenance, and updates of the digital banking platform are crucial to ensure smooth functionality and address any potential issues promptly. The study concluded that, internet banking, credits and debits cards and mobile banking as analyzed independent variables significantly contributes to financial performance. Keywords: Electronic banking, financial performance, Commercial banks, Equity Bank Plc, Rwanda

Liquidity Capacity and Financial Performance of Commercial Banks in Kenya

Purpose: The objective of the study was to assess the impact of liquidity capacity on the financial performance of commercial banks in Kenya.
 Methodology: This study employed the explanatory research design. The 42 Kenyan commercial banks were the study's target population. The essential financial data for analysis was extracted and compiled using a data collection routine from the yearly reports. Panel data was mined from 42 commercial banks for six years between 2012 and 2018. The data were assessed by employing descriptive statistics as well as inferential statistics. Descriptive statistics employed involved the standard deviation, median, and average. Inferential statistics used involved panel regression. The data analysis was aided by STATA software.
 Findings: The findings from the regression analysis indicate that Net Stable Funding and Liquidity Coverage exert a significant positive impact on the financial performance of commercial banks in Kenya. Conversely, provisioning for Non-Performing Loans, Liquidity Gap, and Provisioning for Nonperforming Loans demonstrate a notable negative effect on the financial performance of commercial banks in the country. Moreover, the study reveals that bank competition plays a significant moderating role in the relationship between liquidity capacity and the financial performance of commercial banks in Kenya.
 Unique Contribution to Theory, Practice and Policy: The study was anchored on Anticipated Income Theory and Liquidity Preference Theory. The study recommended that the regulatory body for commercial banks, the CBK, facilitates open channels of communication between policy makers and senior management of commercial banks in Kenya. This discussion is critical to ensuring that the monetary policies developed are practical and beneficial to the expansion of the commercial banking industry. Lastly, the study suggests that all commercial banks in Kenya integrate considerations of liquidity costs, benefits, and risks into their performance measurement, pricing, and approval processes for significant business activities.

Nexus of Corporate Social Responsibility Expenditure (CSR) and financial performance: Indian banks

This paper investigates the influence of mandatory Corporate Social Responsibility (CSR) expenditure, as stipulated by the Indian Companies Act of 2013, on the financial performance of commercial banks in India. Employing Panel regression models, the study examines the association between CSR expenditure and the financial performance of 22 Indian banks from 2016 to 2022. To measure financial performance, three different profitability indicators and market returns are utilized as proxies. Additionally, four control variables, namely size, risk, age, and capital intensity, are incorporated for robustness analysis. The findings reveal a positive impact of CSR expenditure on the profitability of Indian banks. However, no significant relationship is observed between CSR expenditure and the market returns of the Indian banks.

Capital Buffer, Credit Standards and Financial Performance of Commercial Banks in Kenya

Capital Buffer, Credit Standards and Financial Performance of Commercial Banks in Kenya

COVID-19, Digital Transformation of Banks, and Operational Capabilities of Commercial Banks

The development of financial technology has promoted the innovation and digital transformation of commercial banks. Through digital transformation, commercial banks can improve bank efficiency and operational capabilities. Through empirical analysis, this study explored the relationship between digital bank transformation and commercial bank operating capabilities and how COVID-19, bank categories, and enterprise life cycles affect the relationship between digital bank transformation and commercial bank operating capabilities. This study selected data from China’s commercial banks from 2011 to 2021 and used the regression method of fixed effects to conduct an empirical analysis. The research results show that the digital transformation of banks has improved the operational capabilities of commercial banks. Further analysis showed that the emergence of COVID-19 has negatively affected their relationship. At the same time, compared with rural commercial banks and commercial banks in the recession and phase-out periods, non-rural commercial banks and commercial banks in the growth and maturity stages play a more vital moderating role in the impact of the digital transformation of banks on the financial performance of commercial banks. The main research object of this study is Chinese commercial banks, and this study examines the results of banks’ digital transformation and enriches the research on digital transformation. At the same time, this study is helpful to investors who like investment banks and has good practical significance.

Does credit risk management impact the financial performance of commercial banks?

Commercial banks accept deposits and lend money for investment and consumption. This study used five (5) first-tier banks in Nigeria as a case study to analyze the effects of credit risk management on the financial performance of commercial banks. The study examined fifteen (15) years' worth of panel data (from 2005 to 2019), taken from the audited financial reports of five first-tier listed banks. Deposit Money Banks (DMBs) are the only banks used, and they are all listed on the Nigerian Stock Exchange. Non-performing loans (NPL) and expected credit loss impairment provisions (ECL) were utilized in this study as indicators of credit risk management. At the same time, return on assets (ROA) was employed to measure financial performance.

LIQUIDITY CAPACITY AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

This study determined the effect of liquidity capacity on the financial performance of commercial banks in Kenya. Specific the study determined the effect of Net Stable Funding, Liquidity Coverage, Liquidity Gap and Provisioning for Non-Performing Loans on the financial performance of banks in Kenya. Bank competition variable was used to determine the moderating effect on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya. The study was anchored on the positivism philosophy. The study used an explanatory research design. The study applied panel data models (random effects) based on the outcome of Hausman specification tests to determine the effect of liquidity capacity on the financial performance of commercial banks in Kenya. To test the moderating effect of bank competition variable on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya, Keppel and Zedeck (1989) two-step procedure was used. The regression results revealed that Net Stable Funding and Liquidity Coverage have a significant positive effect on financial performance of commercial banks in Kenya. Provisioning for Non-Performing Loans Liquidity Gap and Provisioning for Non-Performing Loans had a significant negative effect on financial performance of commercial banks in Kenya. The study established that bank competition had a significant moderating effect on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya. Based on these findings, the study recommends that commercial banks in Kenya need to have a good appreciation in terms of having full visibility of all cash flows on the positions of exposures across their operations. Further, they need to have a good insight in terms of the assumptions that drive the cash flows both from a liquidity point of view and from the valuation perspective to best address the terms of requirement from the regulatory standpoint. Additionally, they should empress the stress testing element into the overall equation of their operational activities as prescribed in the Basel III accords. Finally, the study recommends that all commercial banks in Kenya should incorporate liquidity costs, benefits, and risks in the performance measurement, pricing, and approval process for all significant business activities to ensure that the performance of commercial banks in Kenya is enhanced. This research was unable to identify all the possible variables with explanation power on commercial banks’ financial performance in Kenya. Hence, this formed a basis for further research.

Effect of Electronic Banking on Financial Performance of Commercial Banks in Rwanda, A Case of COGEBANQUE Plc

According to the BNR information technology was expected to minimize time, distance, and space and expense thus expanding access to affordable financial services. it was found that, electronic banking is allowing banks to change from the traditional channels associated with human assistance to digital channels that operate on self- service basis reducing operational cost and improving efficiency and financial performance. However, some of the previous researchers give contradicting information on e-baking and the financial performance of commercial banks creating a need for sufficient research to be done on this topic. The general objective of this research is to examine the effect of E-banking on financial performance of commercial banks in Rwanda. Specific objectives were to analyze the use of e-banking in COGEBANQUE PLC from 2018 to 2021; to determine the level of financial performance of COGEBANQUE PLC from 2018 to 2021 and o assess whether there is any relationship between e-banking and financial performance of COGEBANQUE PLC from 2018 to 2021; It should be noted that electronic banking plays a great role in financial performance of banks in Rwanda. Different electronic Banking System tools like ATM, ay direct, mobile phone banking, debit/visa card payment and E electronic check payment has a great impact on bank performance because they increase profitability, return on equity and loans, improves bank management quality, increase bank asset and promotes bank growth and expansion. For the case of COGEBAQUE PLC, Adjusted R squared is coefficient of determination which tells us the variation in the dependent variable due to changes in the independent variable, from the findings in the above table the value of adjusted R squared was 0.625, an indication that there was variation of 62.5% on the performance of COGEBANQUE PLC due to changes in Mobile Banking, internet banking, telephone banking, electronic card banking. This shows that 62.5% changes in performance of COGEBAQUE PLC. As conclusion E banking contributes to the performance of COGEBANQUE PLC in spite of few challenges like network failures inadequate skills and security issues possess a great threat to the confidentiality and integrity of banks information.

Risk Management and Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange

Purpose: In order to reduce any negative consequences on their performance, it is essential for financial institutions to achieve a balance between risk and return. Organizations with effective risk management practices are more likely to succeed in achieving their operational business objectives. 2013 saw a review of commercial bank laws by the Central Bank of Kenya. As a result of these reviews, certain banks began to experience difficulties with their financial performance. Chase Bank and Imperial Bank, for instance, were placed under receivership in 2015 and 2016, respectively. So the question is, was bad financial management influenced by risk management? This was the impetus behind the study's primary goal, which was to ascertain how risk management and the financial success of banks listed on the NSE interacted. The study's specific goals included figuring out how operational risk management affects financial performance, as well as how liquidity risk management affects financial performance, credit risk management's impact on financial performance, and market risk management's impact on financial performance. Risk management theory, liquidity preference theory, adverse selection theory, and extreme value theory served as the study's guiding principles.
 Methodology: The correlational research approach was used in this study to evaluate these difficulties. The 12 listed commercial banks provided the study with their data. A questionnaire was utilized as the tool for gathering data in this study. To analyze the data, descriptive and inferential statistics were both used. Means and standard deviation were used for descriptive statistics.
 Findings: The output of the study shows that a positive association exists between operational risk management and financial performance. The findings revealed a positive relation between liquidity risk management and financial performance. On the same note, it came out from the output that risk management and financial performance are too positively related. Finally the results showed a positive association between market risk management and financial performance.
 Unique contribution to theory, practice and policy: The study offered the following suggestions. Develop and put into practice a comprehensive operational risk management system that discovers, evaluates, monitors, and controls operational risks. Commercial banks should do the same. The framework needs to match the bank's overall business plan, risk tolerance, and regulatory requirements.