Bank Managers Research Articles

Liquidity Risk Management and Bailout Strategies of Bangladeshi Commercial Banks

Purpose: The aim of this study is to evaluate the bailout strategies for sound liquidity management of Bangladeshi Nationalized Commercial Banks. Method: The researcher has selected six banks purposively as sample. A survey was conducted to gather opinions from 120 officials working in the treasury departments of these selected banks. The survey utilized a questionnaire and employed a direct approach. Subsequently, the collected data underwent analysis using common size statement analysis methodology. The survey encompassed various regulatory decisions pertaining to liquidity management. Result and conclusion: The results indicate that within the scope of 07 distinct Acts, Laws, and Regulations, there exist 19 prescribed rules and limits. Among these, 07 rules adhere to the established standards, while 03 exceed the prescribed rules and limits, and 09 fall short of meeting the specified limits. Implication of the research: The evaluation of bailout strategies offers valuable insights into enhancing liquidity management practices, potentially bolstering the stability of the banking sector. Besides, the identification of discrepancies between regulatory requirements and actual compliance underscores the need for stringent oversight and enforcement mechanisms. Lastly, by highlighting areas of non-compliance, the researcher recommends that Bangladesh Bank must critically review and monitor the rules regularly. Originality: The originality of this research lies in its pioneering exploration of bailout strategies, offering novel insights into the regulatory landscape and practical implications for effective liquidity risk mitigation and financial stability in Bangladesh's banking sector.

Internal audit as a moderator of the relationship between accounting information systems and performance in Jordanian commercial banks

This study aimed to find out the influence of Accounting Information Systems on the performance of Jordanian commercial banks, and the degree to which internal audit moderates this relationship. This was a current quantitative study designed to be at a descending trend of the survey conducted primarily on 12 major Jordanian banks’ accounting departments using descriptive and cross-sectional designs. From a total distribution of 358 questionnaires, 249 were returned, and after screening only 243 were deemed valid. Partial Least Square Structural Equation Modeling (PLS-SEM) was used as a statistical tool for data analysis, which is appropriate when exploring convoluted relationships and testing hypotheses. The findings indicate that there is a clear positive relationship between the implementation of AIS systems and improvement in the performance metrics at Jordanian banks; thus, hypothesis 1 is corroborated at a significant level of p < 0.01. More significantly, the findings suggest that internal audit highly strengthens the positive effect of AIS on bank performance, thereby supporting hypothesis 2 at the same significance level. This dual realization reiterates the needed adoption of advanced AIS by Jordanian banks and a general improvement to the internal auditors of the mechanisms that ensure they maximize on the benefits accruing in performance. More fundamentally, the findings underscore the dire urgency to incorporate efficacious AIS alongside with robust internal audit mechanisms in banking strategies, thereby providing crucial implications for bank managers and sectoral policymakers.

Corporate training in commercial banks: trends in the foreign financial sector

Currently, many organizations see an urgent need for systematic and targeted development of the skills and abilities of their employees, and are reviewing their training concepts and strategies, since changes in the external and internal organizational environment require adaptation to new processes, procedures, technologies and systems. Commercial banks are no exception to this rule. International studies reflecting the practice of personnel policy and human resource management in the largest banks in the world, such as JP Morgan, Bank of America, Citigroup, KCB, Equity, Pan–African Bank, Bank of Africa, etc., show that corporate training is highly appreciated by employees, is perceived as a mechanism of motivation and employee loyalty, helps reduce turnover personnel and increase the productivity of their work. Thus, personnel development through corporate training programs becomes a necessary and integral part of the personnel policy of modern companies in the banking sector, integrated into the strategy of corporate training and personnel policy in the unity of strategic goals and objectives of general management.

An investigation on the behavioral intention of existing bank clients in a developing country to use mobile banking services

Mobile banking has become very important in today’s life as technological advancements have led bank clients to use banking services. Clients’ attitudes toward mobile banking services are based on their expectations is the background of this research. So, the main objective is to observe the purposeful conduct in mind of clients to adopt mobile banking services. This study also examines the influence of six variables on financial services clients’ desire to utilize mobile banking services, including perceived benefits, perceived ease of use, trust, security, perceived privacy, and technology expertise. Consequently, the goal of this study is to find out the crucial and deciding factors that may influence clients’ willingness to use mobile banking features in Bangladesh as a developing country. The sample shaped for this research is 310 respondents from Bangladesh a developing country. For analytical purposes, SEM has been used to test hypotheses. The results show that in Bangladesh, factors like perceived value, security, and technological aptitude greatly determine whether a customer will utilize mobile banking. Financial institutions have proven to be successful in serving clients through mobile phones. Clients have made good use of mobile banking only to save money, cost, and labor. The research suggests that mobile banking operations must be timely and accurate, the transaction process must be short, interactivity, convenience of usage, and so on. The findings have important implications for bank regulatory authority, management, bankers, and executives who wish to increase mobile banking usage to secure their long-term profitability.

The moderating role of information technology infrastructure in the relationship between fintech adoption and organizational competitiveness

The rapid advancement and adoption of fintech have significantly influenced the banking sector worldwide. This study aims to investigate the moderating effect of information technology infrastructure on the link between fintech adoption and organizational competitiveness in Jordanian commercial banks. The study chose a quantitative research methodology to conduct this study, based on a survey of 12 Jordanian commercial banks, chose a quantitative research methodology. The study distributed a structured questionnaire, which was filled out by managerial-level employees at the banks. From the 400 questionnaires distributed to the respondents, 215 returned valid responses, allowing further analysis. The study carried out the data analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results suggested that the adoption of fintech had a significant, positive direct impact on organizational competitiveness (H1: β = 0.409, t = 5.204, p = 0.001). Additionally, the study identified that IT infrastructure significantly moderates the relationships between fintech adoption and organizational competitiveness (H2: β = 0.257, t = 4.102, p = 0.000). This means, indeed, that fintech adoption independently augments the competitiveness of Jordanian commercial banks. Moreover, a solid presence in IT infrastructure further strengthens the positive effect. Such insights are highly valuable for bank managers and policymakers looking to improve organizational performance while incorporating strategic IT investments in the fintech domain.

A systematic evaluation of links among corporate structure, knowledge management, and financial effectiveness in Vietnam’s banking sector

There have been a few studies that have examined the moderating importance of corporate structures in the model. Consequently, the key aim of the current research is to investigate the influences of corporate structures on financial effectiveness in banking and knowledge management, where it attempts to evaluate the moderating role of corporate structures on the relationship between knowledge management and financial effectiveness in banking. The current study is based on the population of banks and banking branches in Vietnam. It employs a survey research design and targets 500 banking institutions in Vietnam. However, only 328 appropriate institutions offered sufficiently required information for analyses. The procedures of multiple regressions are applied to statistically investigate causal associations, while the methods of hierarchical regressions were utilized to examine the moderation of corporate structure in the linkages. The research results indicate statistically significant influences of knowledge management and corporate structures on financial effectiveness in banking. More importantly, this study finds that the way corporate structures affect the relationship between knowledge management and how well banks do financially is statistically significant. The empirical findings help administrators make suitable corporate structures that better match the adoption of knowledge management in banking so that they can enjoy enhanced financial effectiveness in banking. This study adds to the literature by evaluating the moderating role of corporate structures in the association between management of knowledge and financial effectiveness in banking. These distinctions improve the field, setting it apart from other research projects.

Islamic banks' contribution to Indonesia districts' economic growth and poverty alleviation

PurposeThis research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable.Design/methodology/approachA total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012–2020. Fixed-effect regression analysis was used to examine variable’s interactions.FindingsThe empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables.Research limitations/implicationsThe current study was limited to Indonesian Islamic banks and the district’s perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields.Practical implicationsBank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics.Originality/valueThis study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model.

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

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

Elevating Customer Relationship Management in Chinese Banking: A Synergy of Information Technology and Strategic Practices

Elevating Customer Relationship Management in Chinese Banking: A Synergy of Information Technology and Strategic Practices

Effects of green HRM practices on circular economy-based performance of banking organizations in an emerging nation

The concept of circular economy-based performance has gained significant interest within the highly competitive business arena and environment-concerned stakeholders. This study assumes that environment oriented HRM practices have significant effects on circular economy-based performance. This study aims to investigate the contributory effect of five selected components of green HRM on the circular economy-based performance of environment-concerned banking organizations. A total of 418 managers of commercial banks are the unit of analysis, and data were derived using a structured questionnaire from the respondents who are working in managerial positions in banking organizations in Bangladesh. The gathered data has been encoded by SPSS and analyzed through PLS-SEM 4. The results of this study reveal that all components of green HRM, i.e., green employment design, planning, staffing, training, and benefits significantly contribute to the circular economy-based performance of the banking sector. Thus, green HRM effectively promotes the circular performance of banks to provide a distinctive perspective for adding value to the environmental concerns in an emerging economy. AcknowledgmentThe authors appreciate the support in preparing the article provided by the University of Debrecen Program for Scientific Publication.

Digital transformation under the governance of Palestinian banks

This study aims to understand and evaluate the impact of applying governance principles on digital transformation in Palestinian banks listed on the Palestine Stock Exchange. A questionnaire was distributed to 750 employees from the study population. It included four axes representing governance principles (board of directors’ tasks, board practices and conflicts of interest, disclosure and transparency, and risk management) and a fifth axe representing digital transformation. The study found a strong, statistically significant positive effect of applying governance principles on digital transformation in Palestinian banks. The results also showed the keenness of the boards of directors to discuss the commitment of bank management to implement the provisions and regulations of governance issued by the Palestine Monetary Authority. This helped in developing and approving the necessary policies for risk management and enhanced the effectiveness of oversight of the digital transformation system. This was reflected in increasing customer confidence in the banks’ performance and maintaining the interests of related parties. The study recommended the need to enhance the level of transparency and disclosure regarding governance performance and the progress of digital transformation in banks. It also recommended developing an integrated framework for analyzing and managing risks related to digital transformation. This assists in providing comprehensive training and development programs for practitioners to enhance their capabilities in the field of digital transformation and applying governance principles.

Assessing and enhancing operational efficiency in Sierra Leone's retail banking sector: A comparative analysis using CCR and BCC DEA models

AbstractThis study assesses the operational efficiency of 14 Sierra Leone commercial banks from 2020 to 2022, focusing on the adoption of financial innovation, such as digital banking, mobile services, and online payments. The research evaluates banks' performance by leveraging innovations using data envelope analysis (DEA) with constant and variable returns to scale models. Findings show varied efficiency, with some banks excelling and others lagging. The study underscores the need for strategic management and optimization so that banks can benefit fully from financial innovations. The insights inform policymakers and bank managers on enhancing the sector's operational performance through technology integration.

Strategic Management Practices and Customer Retention: The Role of Technology of Tier 1 Banks in Nigeria

The capability of corporate financial organisations to set its vision within the frontiers of achievable objectives is crucial for long term effectiveness. Hence our focus on strategic management practices and customer retention in tier-1 banks in Nigeria; leveraging on the place of technology. The study further aims to deepen the relationship between the dimensions of strategic management and the measures of customer retention, while bringing to bear on the relationships the impact of technology within the financial space. The study utilized cross-sectional survey research based stratified sampling; where data collection from 248 employees of six tier-1 banks in Port Harcourt were conducted. The Spearman Rank Correlation Coefficient was deployed with the aid of the Statistical Package for Social Sciences (SPSS) version 26 for our analyses. The result showed strong and positive correlation coefficient (r = 0.649) between strategy formulation and customer loyalty; also positive and a significant relationship existed between strategy formulation and customer satisfaction; a positive and significant relationship existed between strategy implementation and customer satisfaction; significant relationship between strategy evaluation and customer loyalty, and a significant relationship subsisted between strategy evaluation and customer satisfaction . But, technology significantly moderates the relationship between strategic management and customer retention. It was however recommended that the management of tier-1 banks in Nigeria should adopt recent technologies to improve services and provide more value to its customers. With technology, tier-1 banks can effectively and efficiently implement strategic management in order to increase customer retention. Managers should focus on integrating the appropriate technology that will improve its operation and ensure efficient service delivery. The adoption of strategy formulation by tier-1 banks in Nigeria should emphasize assessing existing strategies and the environment before developing new strategies and strategic plans. The strategy formulation process provides a framework for tier-1 banks to take the actions leading to the anticipated results. Keywords: Tier-1 banks; Strategic Management Practices; Bank; Customer Retention

Risk Management of Commercial Banks under Interest Rate Marketisation

Risk Management of Commercial Banks under Interest Rate Marketisation

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

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

Impacts of climate change on environmental and economic sustainability of flexible pavements across China

Pavements are susceptible to accelerated deterioration due to changing climate conditions, leading to increased maintenance and excess fuel consumption through pavement-vehicle interaction. China's diverse climates raise concerns about the environmental and economic sustainability of flexible pavements amid climate change and the effectiveness of preventative maintenance strategies. This study examines climate change's potential impacts on long-term pavement performance, greenhouse gas (GHG) emissions, and costs, employing the Mechanistic-Empirical Pavement Design Guide method. The calibrated World Bank's Highway Development and Management Model 4 assesses the impacts of surface characteristics on vehicle fuel consumption. Life cycle assessment and life cycle cost analysis quantify GHG emissions and costs. Results reveal significant pavement deterioration in Southeast and Central China. Preventative maintenance strategies reduce fuel consumption, with GHG emissions and cost savings from smoother driving conditions outweighing those from maintenance. These insights stress the importance of proactive maintenance strategies for mitigating climate-induced deterioration and enhancing sustainability.

Risk Management and Responses of Banks under COVID-19 and Fed Rate Hike

This paper aims to study how banks carry out risk management and how to avoid systemic risks in the banking industry under the interest rate hike policy in the post-epidemic era. This paper divides bank risks into four main aspects to analyze the impact of sharp interest rate hikes on bank risk management in combination with the acquisition of Credit Suisse and the bankruptcy of Silicon Valley Bank. They are credit risk, liquidity risk, market risk (specifically interest rate risk), and systemic risk. After research, this paper finds that during the COVID-19 period, including interest rate hikes, governments have introduced corresponding policies for risk management. Moreover, when the market risk puts too much pressure on the bank, it will lead to credit risk and then liquidity risk, which may eventually trigger systemic risk under the joint effect. Given the current high inflation situation, the high level of interest rates will remain for a long time. Therefore, banks should do as much as possible to manage risks and reduce the possibility of triggering systemic risks.

Accounting background and cross-membership effects on investment efficiency in Islamic banks: a study of Islamic Supervisory Board members

Purpose This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency. Design/methodology/approach This study uses data collected from 36 Islamic banks across 15 countries globally, spanning the period from 2012 to 2021. This research uses an ordinary least squares regression and a comprehensive set of endogeneity and robustness tests. Findings The findings show a negative relationship between the accounting background of ISB members and investment efficiency. However, when ISB members with accounting backgrounds also have ISB cross-memberships, the banks exhibit high investment efficiency. These results suggest that ISB cross-membership plays a crucial role in facilitating Islamic banks’ access to timely information on investment opportunities. This enables ISB members with accounting expertise to thoroughly assess the benefits and risks associated with their investment prospects. These findings imply that ISB members with accounting backgrounds and cross-memberships have greater motivation and thoughtful considerations for making better investment decisions. Consequently, Islamic banks are better positioned to undertake high profitable investment projects, which enhance their investment efficiency. Practical implications The current study holds immense value for Islamic bank management in their selection of ISB members who possess an accounting background and cross-membership. Originality/value This study delves into a comprehensive investigation of the proficiency, underlying principles and unique characteristics exhibited by ISB members with an accounting background. Moreover, this study acknowledges the burgeoning global prominence of Islamic banks.

Effect of Talent Management Practices on Employee Performance in Selected Commercial Banks in Nigeria

Employee performance, which has become a source of concern for many Nigerian companies, especially in the banking industry influences organizational performance, work quality, and customer satisfaction, since organizational success heavily depends on employee performance. To this end, talent management and job satisfaction have become so pivotal that both success and failure of any organization are attributed to the quality and productivity of the human capital it possesses. Therefore, this study will examine the mediating role of job satisfaction in the relationship between these three talent management practices (recruitment and selection, training and development, and performance management) and commercial banks’ employees’ performance in Nigeria. The study employed the proportionate random sampling method. The study identified thirteen (13) commercial banks in Nigeria that are listed on the Nigerian Stock exchange. PLS-SEM path modelling was employed to analyze the data. Six hypotheses were developed in alternate form and result supported the hypotheses. Statistical evidence shows that there is a significant relationship between recruitment and selection and employee performance. it also shows that there is a significant relationship between, training and development, performance management, and employee performance. Finally, the study found that job satisfaction mediates the relationship between talent management practices and job satisfaction. The study therefore recommends that bank managers should adopt and recommend green recruitment and selection process for their banks’ employee as this will reveal new ways of recruitment and selection pattern that devour of influence and favouritism given to friends and relatives. It also recommends that managers give due consideration to the performance management, training and development, and job satisfaction of employee as this may still generate a positive impact on the organization performance on the long round.

Pengaruh Pembiayaan Musyarakah Mudharabah dan Murabahah Terhadap Profitabilitas Bank BSI

This research aims to analyze the influence of musyarakah, mudharabah and murabahah financing on the profitability (ROE) of Bank Syariah Indonesia for the 2013-2023 period. The Ordinary Least Squares (OLS) method was used to analyze the financial data of Bank Syariah Indonesia from 2013 to 2023. The results of the analysis show that the three types of financing, both partially and simultaneously, have a positive and significant effect on the financial performance of Bank Syariah Indonesia. financial performance of Bank Syariah Indonesia. profitability of Indonesian Sharia Bank. These findings underline the importance of effective asset and capital management in improving the financial performance of Islamic banks. Thus, this research provides a better understanding of the relationship between types of sharia financing and bank profitability, as well as providing guidance for sharia bank management in making decisions to achieve better financial performance in the future.