Bank Managers Research Articles

Genetic diversity of the Turkish accessions of two progenitor species, Triticum baeoticum Boiss. and Triticum urartu Thum. ex Gandil., using DArTSeq markers

AbstractThe aim of this study was to reveal the intra and interspecies differences between Triticum baeoticum and Triticum urartu using Diversity Arrays Technology sequencing (DArTseq) on 94 accessions representing Turkish populations. Seeds were gathered from the US Department of Agriculture, and from the Turkish Seed Gene Bank. Isolated and purified DNA samples were sent to Diversity Arrays Technologies for DArTseq. After the necessary quality filtering, a total of 16,898 and 100,103 loci were obtained respectively from the single nucleotide polymorphism (SNP) and SilicoDArT datasets. ADMIXTURE software was used to reveal the intra and interspecies population structures. Analysis of molecular variance was carried out to reveal the variance between the populations of the T. urartu and T. baeoticum species. Principal coordinate analysis was conducted to visualize the main sources of variation between the populations on a 2-dimensional plane. To reveal the evolutionary relationship, SNP dataset was used to reconstruct the phylogenetic dendrograms by using the maximum likelihood statistical method and the unweighted pair group method with arithmetic mean clustering algorithm. As a result of this study, the accessions of T. urartu and T. baeoticum species formed separate clusters and revealed as two different species. In line with the results obtained, it is obvious that the identification of some accessions should be re-evaluated. The results demonstrated that DArTseq, is a fast, low-cost, and high-accuracy method that can be used in species and population discrimination and an effective tool for Gene Bank management.

National culture and Islamic bank risk-taking in the Middle East and Asian countries

ABSTRACT This study investigates the influence of the national culture on risk-taking in Islamic banks. The sample comprises 60 Islamic banks in the Middle East, Southeast Asia, and South Asia from 2011 to 2019. Using the random effects generalized least squares model, we find that national culture influences risk-taking in Islamic banks, especially in the power distance dimension. Low power distance incentivizes greater risk. In low power distance countries, Islamic banks tend to adopt a more aggressive approach to their decisions because of the trust and authority of shareholders and depositors, resulting in excessive risk-taking. The findings have implications for regulators and Islamic bank managers to consider national cultural elements when developing bank risk management policies.

Analisis Manajemen Risiko Produk Pembiayaan Multijasa Pada PT. Bank Tabungan Negara Syariah

This research discusses the risk management analysis carried out by PT. Sharia State Savings Bank towards multi-service financing products. The method used in this study is descriptive qualitative, the data collected in this study is in the form of words, sentences or images that describe the actual situation. The author collects data through observation, interviews, and documentation to facilitate the research process. The results showed that the risks faced by PT. Sharia State Savings Bank towards multi-service financing, namely financing risks and operational risks. The application of risk management carried out by PT. Sharia State Savings Bank is by conducting an identification process by looking at 5C (Character, Capacity, Capital, Collateral, Condition Of Economy), measuring by looking at the NPF value every month, monitoring by providing daily report updates, as well as controlling with several collection processes, visits, saving financing using Reconditioning and Rescheduling, as well as conducting collateral auctions. Pt. Sharia State Savings Bank has carried out risk management of multi-service financing properly and in accordance with PBI No. 13/23/PBI/2011 concerning the Application of Risk Management for Sharia Commercial Banks and Sharia Business Units, namely a series of procedures and methodologies used to identify, measure, monitor, and control risks that arise.

A comparative study on bank income diversification: which non-interest income component is beneficial?

PurposeThis paper aims to conduct a comparative study on the impact of income diversification and the main non-interest components on banks’ financial performance and risk-adjusted profitability in China and Egypt.Design/methodology/approachThis study uses both static and dynamic panel regression analyses on a sample of Egyptian and Chinese banks from 2009 to 2022.FindingsIncome diversification yields positive effects on bank profitability in Egypt and China. Trading income consistently exhibits a significant positive influence on bank profitability in both nations. Conversely, fee-based income positively impacts bank profitability in China, whereas in Egypt, this effect is observed under dynamic-based regression models. On the contrary, income diversification does not consistently increase risk-adjusted profitability in both countries, especially Egypt.Originality/valueTo the best of the authors’ knowledge, this is the first study to examine the impact of income diversification on Egyptian bank performance while identifying the most significant non-interest income components. In addition, the comparative analysis conducted in this study reveals the positioning of China, the largest economy among emerging countries, in terms of the degree of income diversification, its impact on bank profitability and the extent to which non-interest income components contribute to bank profitability when compared with Egypt, representing an emerging country characterised by different levels of bank market power, financial infrastructure and expertise. Findings hold significant implications, suggesting that bank managers and policymakers should prioritise diversifying income sources, particularly through fee-based services and trading activities in China, and trading activities in Egypt, to enhance financial profitability.

Bank fundamental dynamics: the role of optimal bank management

PurposeThis study aims to investigate the dynamic relationships between profitability, credit risk, liquidity risk and capital in Indonesian banking industry.Design/methodology/approachThe authors use a panel vector autoregression model that incorporates macroeconomic variables: growth, interest rate, foreign exchange. The analysis is based on a monthly panel data set of 88 banks spanning from January 2012 to September 2021, which comprises 10,296 bank-month observations.FindingsOur key findings highlight (i) permanent credit cost and liquidity cost pass through practices, (ii) complementary function of liquidity and capital, (iii) earning management motivated asset write off and (iv) credit risk-liquidity risk neutrality. In addition, the authors observe that the banks demonstrated resilience to macroeconomic shocks.Research limitations/implicationsOur study have shown some interesting dynamic patterns of fundamentals; nevertheless, unified theoretical underpinning of the process is still unavailable. This should be an important future reasearch avenue.Practical implicationsThe study brings significant implications for regulatory and supervisory practices aimed at enhancing the financial stability of banks.Originality/valueWe conduct estimation of Indonesian banks system in dynamic perspective and perform impulses responses.

Pengaruh Tata Kelola Syariah Terhadap Kinerja Bank Syariah Dan Kepatuhan Syariah

The aim of this research is to collect empirical data regarding the influence of sharia governance on sharia bank performance and sharia compliance at Bank Syariah Indonesia in Semarang City. Sharia compliance and governance are important components of risk management in Islamic banks. By providing guidance and supervision to sharia bank operations so that they consistently adhere to sharia principles, DPS plays an important role in maintaining sharia compliance. Sharia principles, sharia compliance, and observing sharia compliance are generally mandated for sharia banks. This research uses quantitative research methodology. The population of this research is Bank Syariah Indonesia employees who meet the specified requirements. The Slovin formula was used to determine the research sample, namely 36 people. Questionnaires were used to obtain data. In contrast, this research data analysis uses direct linear regression. The results of the first t test show that the tcount value is 5.870 > ttable of 1.688, the significant value is 0.000 <0.05, and the governance regression coefficient value is positive, namely 0.051. The results of the second t test show that the tcount value is 3.104 > ttable of 1.688, the significant value is 0.004 <0.05, and the governance regression coefficient value is positive, namely 0.046. Research findings show that sharia governance has a positive and significant impact on sharia bank performance and sharia compliance at Bank Syariah Indonesia in Semarang City.

Liquidity Risk Exposure and Earnings Management—Results on an Unexplored Relation in the European Banking Sector

ABSTRACT This study investigates the relation between liquidity risk exposure and earnings management in banks. We use a dynamic panel-data one-step system generalized method of moments estimation and measure exposure to liquidity risk from balance sheet positions. We detect earnings management through income-increasing and -decreasing strategies. We find that the higher the exposure to liquidity risk due to higher liquidity creation, the greater is upward earnings management. Our findings suggest that banks use earnings management to opportunistically conceal high liquidity risk exposure. These findings should be useful for investors and users of financial statements interested in analyzing earnings quality and financial statement reliability. Data Availability: Data are available from specific sources cited in the text. JEL Classification: G21; G30; G32; M41.

Undesirable Customer Behaviours in Banking and De-escalation Techniques

Objectives: The study has three objectives; to identify the types of undesirable behaviour, determine categories of undesirable customer behaviour, and reveal the way of dealing employees with undesirable customer behaviour. Methods: The critical incident technique was utilized in analysing interviews with frontline banking employees and managers in Saudi Arabia. Thematic analysis was chosen to analyse the data. Results: It shows that some customers abuse employees verbally, speak loudly, show contempt, post their frustrations on social media, take photos or videos of employees, and try to harm employees by raising false complaints. The types of undesirable customer behaviour can be divided into three categories, namely, behaviours that harm the employees, behaviours that waste employees' time, and behaviours that frustrate both the employees and the other customers. Conclusion: The study concluded that the types of undesirable customer behaviour are different from one sector to another, and it may not occur in another sector besides the banking sector, and the diversity of undesirable customer behaviours creates a barrier to developing a tactic for each behaviour, and the undesirable customer behaviour can be grouped into three categories according to its impact.

Information Communication Technology and Decision Making Effectiveness of Selected Money Deposit Banks in Nigeria

The study evaluates the relationship between information and communication technology and decision-making efficacy in selected Nigerian money deposit institutions. The goal was to ascertain the degree to which ICT infrastructure influences the efficacy of decision-making in particular deposit money banks, as well as the impact of human resource competence on this relationship. The study used a sample size of two hundred (200) respondents, representing all the employees in the selected deposit money institutions. The study employed a survey method, multiple regression, and Pearson Product Moment Correlation to analyze the data. The results showed a strong correlation between decision-making effectiveness and ICT infrastructure. Additionally, the study revealed that human resource capabilities significantly mitigated the influence of ICT on the efficacy of decision-making in certain deposit money banks. Based on the results, the study suggested that to facilitate quicker decision-making, Nigerian deposit money bank management should implement speedy, interactive, user-friendly websites with high-quality search capabilities. To facilitate efficient decision-making, the management of Nigeria's chosen deposit money institutions should also hire individuals with the necessary ICT (information and communication technology) skills. Lastly, the management of Nigeria's chosen deposit money banks ought to encourage innovative ideas from their staff members to help them succeed. Keywords: Information communication technology, Decision-making effectiveness, Deposit money banks, Nigeria.

The Influence of Product Diversification, Service Quality, and Risk Management of Islamic Banks on Money Market Stability in Indonesia

This study investigates the effect of Product Diversification, Risk Management, and Service Quality of Islamic banks on Money Market Stability in Indonesia. Using quantitative analysis based on Structural Equation Modeling with Partial Least Squares (SEM-PLS), data were collected through a survey of Islamic bank customers. The results reveal significant positive relationships between Product Diversification, Risk Management, Service Quality, and Money Market Stability. Product Diversification positively influences Service Quality and Risk Management, while Service Quality and Risk Management, in turn, positively impact Money Market Stability. The findings underscore the importance of adopting comprehensive strategies to enhance the stability of the money market in Indonesia's Islamic banking sector. These insights have implications for practitioners, policymakers, and researchers aiming to promote financial stability and inclusivity in Islamic finance.

Measuring the efficiency of banks using high-performance ensemble technique

The importance of technology and managerial risk management in banks has increased due to the financial crisis. Banks are the most affected since there are so many of them with poor financial standing. Due to this problem, an unstable and inefficient financial system causes economic stagnation in both the banking sector and overall economy. Data envelopment analysis (DEA) has been used to examine decision-making units (DMUs) performance to enhance efficiency. Currently, with the rapid growth of big data, adding more DMUs will likely require a large amount of memory and CPU time on the computer system, which will be the biggest challenge. As a result, machine learning (ML) approaches have been used to analyze financial institution performance, but many of them have variances in predictions or model stability, making measuring bank efficiency extremely difficult. For this, ensemble learning is commonly used to evaluate the performance of financial institutions in this context. This paper presents a robust super learner ensemble technique for assessing bank efficiency, with four machine learning models serving as base learners. These models are the support vector machine (SVM), K-nearest neighbors (KNN), random forest (RF), and AdaBoost classifier (ADA) which represent the base learners and their results utilized to train the meta-learner. The super learner (SL) approach is an extension of the stacking technique, which generates an ensemble based on cross-validation. One important benefit of this cross-validation theory-based technique is that it can overcome the overfitting issue that plagues most other ensemble approaches. When SL and base learners were compared for their forecasting abilities using different statistical standards, the results showed that the SL is superior to the base learners, where different variable combinations were used. The SL had accuracy (ACC) of 0.8636–0.9545 and F1-score (F1) of 0.9143–0.9714, while the basic learners had ACC of 0.5909–0.8182 and F1 of 0.6897–0.9143. So, SL is highly recommended for improving the accuracy of financial data forecasts, even with limited financial data.

Application of KMV Model in Credit Risk Management in Banking Industry

As an important part of the national financial system, the banking industry bears important responsibilities for the national economy. In addition, the banking industry is considered an area full of high risks. The risk management of banks not only involves the national finance, economy and national security, but also directly affects the national financial system and the stability of the global financial order. Credit risk has always been one of the risks that domestic and foreign banking banks pay special attention to. Effectively identifying and preventing credit risk is the key to ensure the smooth operation of banks. In order to better identify and manage the credit risk of the listed banks in China, this study uses the KMV model to measure the default distance of the sample banks. Will default distance as assessment of China listed commercial Banks credit risk agent variables, using before 2019 in China's a-share market listed commercial Banks build panel data, empirical analysis, and discuss the analysis results, put forward relevant policy Suggestions, model support for the healthy and steady development of the banking industry. This paper analyzes the current situation of the application of modern credit risk measurement model in the risk management of the banking industry. Meanwhile, combining with the data of some listed banks in China, discusses the credit risks and challenges faced by banks through in-depth analysis, and provides development suggestions with the data analysis of financial model.

IMPACT OF THE COVID-19 PANDEMIC ON BANK LENDING: AN ANALYSIS OF RISK PERCEPTION AMONG BANK MANAGERS IN INDIA

With the onset of Covid 19 pandemic, the world experienced unprecedented disruptions in all aspects of life. It not only affected physical health but also affected economies of the world. In addition to impacts on physical health, it has also caused dramatic changes in the financial markets and institutions. A healthy banking system is crucial for the liquidity of the economy and the smooth flow of credit in the system. Amidst all this, the major interest of the policymakers lies in the alteration of the lending practices of the banks when faced with increased uncertainty and risk. This paper aims to present new evidence regarding the lending decisions made by the banks during Covid pandemic across multiple countries. It is a unique opportunity to study these effects in different countries of the globe. In response to the pandemic, the Central banks introduced monetary stimulus measures to address the concerns of the business with regards to solvency and liquidity. Also, many countries launched extraordinary credit guarantee programs to support businesses during this challenging time. These loan guarantees, sometimes paired with government purchases of corporate bonds, have been essential tools for infusing liquidity to the struggling businesses. This paper calculates the shock of Covid 19 on bank lending in India and how risk perceptions of bank managers changed during this challenging period.

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.

Waste management improvement with software application at Wringinsongo Village, Tumpang Regency, Malang

Wringinsongo Village, Tumpang Subdistrict, Malang Regency maintains a clean environment through environmentally friendly waste management. One of Wringinsongo's BUMDes (Village-Owned Enterprises) is the Waste Bank, which uses waste as a potential sector. It needs to get special attention related to its governance because the recording is still less effective and there are often calculation errors caused by the recording system using paper. Based on these conditions, it is necessary to develop an application to help record transaction activities at the Waste Bank. The Wringinsongo Village Waste Bank application can be accessed on both the web platform and Android mobile devices, based on the ease of access to the system by village managers and officials. After developing the application, socialization, and training were conducted to the Waste Bank manager and village officials to provide information on how to use the application. After three months of use, feedback was taken to get responses related to the use of the application. The result is that BUMDes managers find it easy to record and obtain accurate and faster calculation results.

Bank Culture and Bank Liquidity Creation

ABSTRACTResearch Question/IssueThis study aimed to understand the impact of bank culture on liquidity creation by applying textual analysis to data from US bank holding companies.Research Findings/InsightsThe results indicated a substantial connection between bank culture and liquidity creation. Control and collaborative cultures negatively impacted liquidity creation, whereas a competing culture had a positive effect. The negative impacts were stronger in more diversified, experienced, and profitable banks and weaker in larger banks. In complete culture banks, liquidity creation decreased with increased experience and profitability but increased with size. The influence of culture on the different aspects of liquidity creation was similar across the board for overall liquidity generation.Theoretical/Academic ImplicationsBy introducing a new bank culture index, this study offers a unique contribution to the academic understanding of the interplay between organizational culture and financial performance, particularly liquidity creation.Practitioner/Policy ImplicationsThe insights from this study are valuable for bank managers and regulators as they highlight the aspects of bank culture that can be leveraged or adjusted to optimize liquidity creation, thereby informing strategies and policy decisions.

Assessing the impact of macroeconomic uncertainties on bank stability: Insights from ASEAN-8 countries

This research examines the effect of economic uncertainties on bank stability in ASEAN-8 countries. We use estimations with fixed effects for a panel dataset of bank stability, bank characteristics, banking system characteristics, and macroeconomic uncertainties from 2010 to 2020. Geopolitical risk (GPR), economic policy uncertainty (EPU), climate policy uncertainty (CPU), world pandemic uncertainty (WPU), global supply chain pressure (GSCP), and monetary policy uncertainty (MPU) are used as proxies for economic uncertainty (MU) in this research. We find that although an increase in macroeconomic uncertainties weakens bank stability, GPR is positively related to bank stability. An alternative measurement of bank stability, endogenous tests, and quantile regression corroborate our primary findings. Further analyses focus on the heterogeneous influence of macroeconomic uncertainties on bank stability with diversified bank specifics and the country's financial openness. Our paper supplies deep insights for bank managers and macro policymakers in the ASEAN region relevant to the effect of macroeconomic uncertainties on bank stability. Most crucially, experimental results from this research enrich a wealth of knowledge about the regional banking industry's stability; they are the basis for the establishment of bank strategies and macroprudential policies geared to managing the increased macro-unpredictability.

The Collapse of Silicon Valley Banks Improves Risk Management for Other Commercial Banks

Silicon Valley Bank, a subsidiary of Silicon Valley Bank Financial Group, provides loans to venture capital as well as startups. Silicon Valley Bank primarily serves technology-based companies. Our paper focuses on the implications of the Silicon Valley bank bankruptcy for other commercial banks from four aspects. First, what are the risks in the business operation model of Silicon Valley banks; second, what caused the bankruptcy of Silicon Valley Bank; Third, the impact of the bankruptcy of Silicon Valley Bank; Fourth, the bankruptcy of Silicon Valley Bank has implications for the development of Chinese commercial banks. The main reason for the bankruptcy of Silicon Valley Bank was the Fed's interest rate hike. As a traditional commercial bank, Silicon Valley Bank's profit model is mainly based on interest differential. Affected by the epidemic, the demand for loans from Silicon Valley banks declined, so Silicon Valley banks chose to buy US Treasury bonds and MSBs. The Fed's interest rate hike coupled with a large amount of money printing in the United States has led to inflation. The sharp depreciation of US Treasuries and MSBs, coupled with the end of the mobile Internet cycle, forced Silicon Valley banks to sell a large number of unmatured bonds. Eventually a bank run occurred, leading to the bankruptcy of Silicon Valley Bank.

The role of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion in the Kurdistan Regional Government – Iraq

The current research aims to identify the role of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion in the Kurdistan Regional Government, and shedding light on the mechanisms for application “My Account” project as one of the digital transformation mechanisms and improving it in a way that achieves financial inclusion. As well as researching the importance and necessity of achieving financial inclusion with the aim of getting rid of the problem of the financial crisis in the region, especially the problem of the salaries of regional government employees. The research relied on the field method for collecting data through statistical analysis and using SPSS23 programs for data on 47 questionnaire forms obtained from the research sample, which is represented in four categories: bank managers, administrative managers, accountants, and IT employees in government and private banks in Dohuk Governorate, in order to test the research hypotheses. The research reached a set of conclusions, the most important of which are: The results that there is a strong impact of application “My Account” project as one of the digital transformation mechanisms in achieving financial inclusion. Accordingly, it can be said that the correct application of “My Account” project will have a positive impact on achieving financial inclusion and thus will be an effective factor in stabilizing the financial situation and resolve the financial crisis. The results also demonstrated that the government financial system in the region is traditional, especially in terms of the financial services provided by the system to employees, and this needs to be developed and transformed into a digital system in response to the global digital environment that achieves financial inclusion. The research presented a number of recommendations, the most important of which is the necessity of application “My Account” project in the correct manner and in proportion to the requirements and needs of the employees and citizens of the regional government and as quickly as possible, with the aim of achieving financial inclusion in general and ending the salary problem in particular. Work should also be done to restore confidence among citizens in the region to persuade them to deal with banks, especially in terms of electronic banking services and transactions, in order to achieve financial inclusion successfully

BLOOD BANK MANAGEMENT STSTEM

The Blood Bank Management System (BBMS) is a comprehensive software solution designed to streamline and automate the operations of blood banks and transfusion centers. This system provides a centralized platform for managing blood inventory, donor information, blood testing, and distribution processes, thereby enhancing operational efficiency and ensuring timely access to safe blood products for patients.