Mixed Banks Research Articles

Analysing Banking Compliance from Maqasid Shariah Perspective: Evidence from Islamic and Conventional Bank in Indonesia

Using the Shariah (Islamic legal rulings) and its higher ethical objectives namely the maqasid shariah, the purpose of this paper is to analyze the success of Banking in Indonesia. The maqasid shariah index (MSI) and limited maqasid shariah index (LMSI) are emphasizes disclosures regarding education, social justice, and redistribution of wealth. Researchers assess the ethical and social performance of selected banks in Indonesia from its annual reports. Simple Additive Weighting (SAW) technique used to calculate the sample’s MSI score. Empirical evidence suggests that conventional performance measurements do not truly reflect IBs’ higher ethical objectives and create a deficiency of attaining maqasid shariah performance in these banks. This study extends the previous literature on evaluating the performance of banks beyond the financial return to include their ethical and social identity based on the maqasid shariah scale, particularly over the past five years. The result reveal that there is a financial cost to achieving the maqasid shariah, as in the model generated from the panel data regression which shows a significant negative relationship between MSI and ROA for Islamic banks. Different results were obtained in analyzing conventional banks and mixed banks (Islamic banks and conventional banks) using the Limited MSI (LMSI). LMSI has a significant positive relationship to ROA in both conventional banks and Islamic banks. This happens because the elements used in MSI and LMSI calculations are different.

The establishment of banking supervision in Italy: an assessment (1926–1936)

This paper describes the establishment of banking supervision in Italy and its operation between 1926 and 1936, using a narrative approach based on previously classified documents from the Bank of Italy’s Historical Archives. This case is particularly interesting from the international perspective, Italy having been the first European country to assign substantial supervision to its central bank, a few years before the 1929 crisis. Notwithstanding insufficient regulation and a light touch concerning the four major mixed banks, we document considerable enforcement of the law, which went beyond the initial provisions, thanks to the rather proactive supervisory approach adopted by the Bank of Italy.

FINANCIAL DISTRESS PADA SEKTOR BANK CAMPURAN DI INDONESIA DENGAN RASIO CAMEL SEBAGAI ALAT UKUR. PERIODE STUDI 2014 – 2019.

This study aims to analyze the effect of the CAMEL ratio as measured using the ratio of CAR, NPL, ROA, ROE, LDR and BOPO to financial distress in the mixed bank sector in Indonesia for the period 2014-2019. Data were analyzed using multiple regression and hypothesis testing F test for simultaneous effect and T test for partial effect. The results of this study indicate that the ratio of CAR, NPL, ROA, ROE and LDR partially has no significant effect on Financial Distress, while BOPO has a significant effect on Financial Distress. However, simultaneously the six ratios have an effect on the Financial Distress of Indonesian banks

БАНКІВСЬКІ ПОСЛУГИ САМООБСЛУГОВУВАННЯ: АНАЛІЗ ЗМІСТУ ТА СПЕЦИФІЧНІ ХАРАКТЕРИСТИКИ

The article determines the demand for streaming by content and specific characteristics for banking services that connect with digitalization from a theoretical point of view. Analysis of publications and articles shows the usage of different terminologies such as electronic banking, remote banking, self-service, mixed banking service, distance payment system, fintech, internet banking, online banking. As a result of terminology variation, a synthesis of research in this field become inaccurate. Thus, this article proposes eliminating the previous terminology that describes banking services only by one characteristic. In our opinion, this approach is incorrect. By the way, the authors do not substantiate it. All characteristics that connect with this type of banking services we recommend to classified into three groups: specific features of services, specific distinctions of the market to which the service belongs, specific maintenance characteristics. Each group has a description of the features of such services. The first group has universality, complexity, value and peril. The remoteness and delayed competitiveness include in the second group. The characteristics of the last group are technological effectiveness, self-service, protection of the service process, the impersonality of service. The comparative analysis and generalization of the research show that internal characteristics and markets characteristics can not be the most important in the definition of the terms. This group of characteristics replicate only one side of the process in providing banking services. This group of characteristics replicate only one side of the process in providing banking services – the bank as a financial market entity. Only the third group of specific characteristics satisfy both sides until the mentioned mechanism. Hence, the content-forming characteristic must be in the third group. The analysis of the listed specific characteristics has proved that only «self-service» can be content-forming. The most accurate way to determine the variation of digital banking services is using the term «banking self-service».

The role of macrophyte architecture in driving periphytic algal communities in a lowland river in the Brazilian Amazon

Aquatic macrophytes have a key role in aquatic ecosystems because they can structure biotic communities by offering habitat for many aquatic organisms, especially periphytic algae. The aim of this study was to evaluate the periphytic algal structure (taxonomic diversity and functional traits) in two macrophytes with different architectures (Nymphaea L. and Cabomba Aubl.). We tested the hypothesis that architectures of the Nymphaea and Cabomba affect in a different way the periphytic algae community, increasing taxa richness and density in more complex substrate (Cabomba), and that the taxa composition, life form and adherence form are different between both types of macrophyte. In addition, we tested whether there is higher algae density without a fixed structure on complex substrate. The study was conducted in Caxiuana National Forest, one of the largest protected areas in the Para state, Eastern Amazon. The samplings were made in blocks with two levels (Nymphaea and Cabomba) under the same abiotic conditions. Our results showed that there was a significant difference in taxa richness and density between macrophytes, with higher values in Cabomba. We found more exclusive species in more complex substrate (70, Cabomba), than less complex substrate (19, Nymphaea). Furthermore, species composition, life form and adherence form also showed differences between macrophytes, with higher algae density without a fixed structure on Cabomba. These results indicated that when the source of algal propagules is the same (mixed bank of macrophytes), the habitat complexity tightly influenced the diversity of periphytic algae community.

A meta-crisis banking efficiency study in the MENA region

Purpose The purpose of this paper is to comparatively examine the cost and the overlooked revenue efficiency of Islamic and commercial banks in the aftermath of the crisis, operating in nine MENA-based countries during the 2010-2017 financial period, where the established empirical work is relatively limited. The authors also update the research where they use recent data sets and they provide for a targeted, structured literature review pre- and post-crisis in the Gulf region. Design/methodology/approach The authors examine cost and revenue efficiency of 25 major Islamic banks (IBs) and 25 major conventional banks (CBs). They conduct tests on the determinants of such variables. In the first stage of the analysis, they measure efficiency by using the data envelopment analysis (DEA) technique. The analysis performs regressions where these also reveal that the bank efficiency index is influenced by various bank type-specific attributes. It also seems that tighter restrictions on bank activities are negatively associated with bank efficiency. Second stage analysis, which accounts for banking environment and bank-level characteristics, confirms these results. Findings Conventional banks are both more cost and revenue efficient than Islamic banks over the period under examination. The analysis also reveals that the bank efficiency index is influenced by bank-type attributes. Greater presence of fixed capital resources has positive effects on growth in both Islamic and conventional banking. The major constraints impeding Islamic banking growth include labour costs. The authors examine whether and how bank-type orientation affects the cost and revenue efficiency of conventional and Islamic banks. They find that post-crisis Islamic banks underperform their conventional counterparts on both accounts within a mixed banking system. Research limitations/implications This study did not include comparative data before the 2008 financial crisis. There is also a great deal of heterogeneity among Islamic banks in the samples that have been examined here and by other researchers and the constructed efficiency scores should be interpreted cautiously as divergent Islamic banks are pooled in the same samples. Practical implications This study identified factors that may help bank managers to improve their financial outlook by controlling revenue and cost efficiency profitability. These factors could as well help to understand how some indicators affect both cost and revenue efficiency, particularly in Islamic banking. It also seems that tighter restrictions on Islamic bank activities are negatively associated with bank efficiency. Islamic banks that directly compete with their conventional counterparts in the aftermath of the crisis are less efficient on both the cost and revenue frontiers. They are potentially hindered by the differential regulations of supervising authorities in dual banking systems. Social implications The authors provide recommendations regarding regulatory and other issues that are relevant to Islamic banking and further research is suggested. Findings are relevant to a variety of stakeholders (managers, policymakers and regulators). Islamic banking authorities could re-examine the benefits of partially moving to a more standardized/conventional system of banking by lifting some trading restrictions. In addition, developing and maintaining managerial skills is an indispensable instrument for the long-term endurance of any system. A related aspect is thus an effort to determine the holistic efficiency (including managerial) of Islamic banks as a guide for policymakers to improve managerial performance. Originality/value There is relatively limited empirical work that investigates the efficiency between Islamic and conventional banking in the aftermath of the crisis in the Gulf region despite the growing importance of this region on political and economic levels. The authors also examine the revenue efficiency measure often under-researched in the literature and particularly important for comparative studies. Overseas-owned banks have attained much higher infiltration levels in middle-eastern countries over the past decade. It has also been suggested that market penetration differences may also be related to bank efficiency concerns among countries and their financial systems as opposed to types of banks.

Deep reinforcement learning for a color-batching resequencing problem

In automotive paint shops, changes of colors between consecutive production orders cause costs for cleaning the painting robots. It is a significant task to re-sequence orders and group orders with identical color as a color batch to minimize the color changeover costs. In this paper, a Color-batching Resequencing Problem (CRP) with mix bank buffer systems is considered. We propose a Color-Histogram (CH) model to describe the CRP as a Markov decision process and a Deep Q-Network (DQN) algorithm to solve the CRP integrated with the virtual car resequencing technique. The CH model significantly reduces the number of possible actions of the DQN agent, so that the DQN algorithm can be applied to the CRP at a practical scale. A DQN agent is trained in a deep reinforcement learning environment to minimize the costs of color changeovers for the CRP. Two experiments with different assumptions on the order attribute distributions and cost metrics were conducted and evaluated. Experimental results show that the proposed approach outperformed conventional algorithms under both conditions. The proposed agent can run in real time on a regular personal computer with a GPU. Hence, the proposed approach can be readily applied in the production control of automotive paint shops to resolve order-resequencing problems.

Understanding self-efficacy and performance of salespersons in Islamic banking

PurposeThis study aims to investigate the relationship between organization image, awareness effort, customer demandingness, self-efficacy and self-rated performance among salespersons of Islamic banking products in the UAE. It also explores the mediating role of awareness effort and self-efficacy, using a theoretical framework derived from social cognitive theory.Design/methodology/approachData are collected by surveying salespersons in a mixed bank (a conventional bank with an Islamic banking department) in the UAE. The researcher uses structural equation modeling to analyze the data.FindingsThe research concludes that customer demandingness positively affects awareness effort, awareness effort positively affects self-efficacy, self-efficacy positively affects performance and image positively affects salespersons’ self-efficacy and performance. Furthermore, the study highlights the mediating role of awareness effort and self-efficacy in the model.Research limitations/implicationsThe sample consists of 217 salespersons working in the same bank, covering three cities in the UAE. Hence, the rest of the country is not included.Practical implicationsThe study shows the importance of awareness efforts in achieving better performance. It also demonstrates the importance of addressing customer requirements in the banking environment. Furthermore, it illuminates the role of organization image in enforcing salespersons’ self-efficacy and performance.Social implicationsThe paper sheds a light on salespersons’ personalities and the factors that reinforce their performance and self-efficacy.Originality/valueThe research is an empirical study that addresses the relationship between performance, self-efficacy, image, awareness effort and customer demandingness in Islamic banking in the UAE.

HOW LARGE ARE PRODUCTIVITY DIFFERENCES BETWEEN ISLAMIC AND CONVENTIONAL BANKS?

Despite the enormous growth in Islamic banking, most studies, using DEA/Stochastic Frontier Analysis, find Islamic banks are either equally or less productive than conventional banks. We apply the Olley–Pakes (OP) and Ackerberg–Caves–Frazer (ACF) approaches for estimating the production functions of conventional, Islamic and mixed banks in Bahrain and Malaysia between 1990 and 2011. The ACF results are the most plausible. Though Islamic banks tend to be less efficient than conventional banks the difference is not statistically significant. In Malaysia, mixed banks are significantly more productive than other banks and tend to have faster productivity growth.

Study of clay–sand network structures and its effect on river bank erosion: an experimental approach

Evolution of the riverbank morphology due to the removal and collapse of bank sediment results in substantial loss of fertile land and human property. At the lower stretch of a perennial river, clay–sand mixed bank sediments are predominant. Existing literature reveals that large shear stresses are generated due to the interaction between the hydrodynamic forces and bank roughness. This may lead to the dislodgement of the sediment particles from the bank surface. The generation of shear stress of a turbulent flow depends on the scales of turbulent fluctuations and the clay–sand network structures (size, shape, and arrangement of clay and sand particles). However, information on the modulation of turbulent flow structures due to the variation of clay–sand network structures of the bank sediment remains unrevealed. In the present experimental investigation, an attempt is undertaken to study the effect of sediment surface roughness and the associated turbulent scales of the interacting flow. This is achieved by fabricating artificial banks of five different proportions of clay in the clay–sand mixture in a laboratory flume. Scanning electron microscope (SEM) and 3D profilometer measured the surface roughness parameters of clay–sand network structures for different clay proportions. Information on near bank turbulence characteristics was quantified using a 16 MHz acoustic Doppler velocimeter (ADV). Results from the present study show that the surface roughness of bank sediment decreases with increasing clay fraction in the clay–sand network structure of the bank sediment, which also lowers the associated turbulent velocity fluctuations or eddy scales of the flow. Furthermore, small-scale turbulent fluctuations decrease the sediment entrainment rate from the bank face.

MOTIVE AND OBSTACLES IN MAKING A DECISION AS EARLY ADOPTERS OF PSAK NO. 71 FOR IMPAIRMENT PROVISION OF LOANS (STUDY CASE IN INDONESIA BANKING INDUSTRY)

<p class="Default"><em>IFRS 9 has converged into PSAK No. 71 and </em><em>became </em><em>effective on January 1, 2020 where early implementation is permitted. Changing in accounting standards </em><em>might </em><em>have caused controversy. However, there are bank in Indonesia had implemented before PSAK No. 71 effectived (early adopters). This study aims to determine the motive of early adopters of PSAK No.71, the obstacles they faced and the impact especially through loan impairment. By using study case method in Indonesia banking industry and then collect data using semi structured interviews and content analysis. DiMaggio and Powell (1983) explained that institutional theory emphasizes institutional patterns formed because the influence of policy from inside and outside the company (symbolic carriers). Therefore, the motive behind the institutions and actors (material carriers) decision to become early adopters will be revealed. In this case, we found that early adopters are mostly the bank with ownership as foreign bank and mixed bank (as subsidiary). Also, the primary motive of the bank when decide to early adopt are based on following their holding that mandatory to implement IFRS 9. This could create a good external reporting because the accounting standard between holding company and its branch or subsidiary will be similar.</em><em></em></p><strong><em>Keywords:</em></strong><em> </em><em>Banking, Financial Instrument, Early Adopters, Institutional Theory, PSAK No. 71</em>

The contribution of participation banks on the development of the mixed banking system: case of the Turkish Republic

Abstract. In this paper, we examine the impact of participation banks on the development of the hybrid banking system in the Turkish Republic, through an empirical study of independent variables that represent the development of participation banks such as allocated funds, raised funds and net profits, and the development of the mixed banking system that is represented by total assets and this is during the period of December 2011 to July 2018, it’s about 80 observations. First, we will start with the unit root test such as ADF, PP and KPSS tests to verify the stationarity of all variables, then we will apply the Johansen cointegration test for the long-term relationship to verify if there is a long-term co-integration relationship between the dependent variable and the independent ones. The results showed that all variables are stationary at the same level (2nd difference), so they are integrated in the same order (I1), while the Johansen test found that there are three long-term cointegration relationships between the variables involved. So, we concluded that participation banks contribute in the long term to the development of the mixed banking system of the Turkish Republic. Keywords. Participation banks, Mixed banking system, Turkey, Unit root test, Cointegration test. JEL. D39, E49, F69, F69, G21.

Are Islamic Banks Less Efficient than other Banks? Evidence from Bangladesh

Considering the recent shrinkage in Islamic banks’ profitability in Bangladesh, this study investigated whether these banks are less efficient than the conventional and mixed banks. Using 250 firm-year observations from 38 private commercial banks for the years from 2011 to 2017 and estimating operational efficiency through the Data Envelopment and Stochastic Frontier Analyses, we found robust evidence that Islamic banks are less efficient than the conventional and mixed banks. In additional analysis, it was found that the lower efficiency of Islamic banks was driven by their non-investment income. A significant negative shift in Islamic banks’ efficiency was evident in the most recent years compared to the earliest periods in our sample window. These findings helped us explain why the relative profitability of Islamic banks has declined recently. We suggest that Islamic banks’ management pay more attention to their portfolio of non-investment products and services in order to remain competitive in the fast-growing banking landscape in Bangladesh.

A Comparative Study of the Financial Performance of the three Banking Modes in Egypt: Islamic, Conventional and Mixed Banks

The purpose of this study is to examine and compare the financial performance of the three banking modes in Egypt: Islamic, conventional and mixed banks during the period 2003-2010. 13 banks are included in the study (i.e. 2 Islamic banks, 8 conventional banks, and 3 mixed banks). Multiple regression models are used to study the influence of both the internal bank-specific characteristics and the external macroeconomic environment on the performance of the three types of banks in Egypt. Return on assets (ROA) and return on equity (ROE) are employed to measure the performance of the three types of banks in Egypt. Moreover, a set of internal and external factors are considered as independent variables including; liquidity, capital adequacy, asset quality, operation efficiency, bank's size, GDP growth rate (GDP GR), and inflation rate. The findings reveal that operation efficiency has a significant negative impact on the three types of banks in Egypt, while bank's size and inflation rate have a significant influence merely on the performance of conventional banks. In addition, capital adequacy and asset quality have a positive significant influence on the performance of mixed banks. Furthermore, the comparison between financial performances of the three types of banks indicates that there is a significant difference between both ROA and ROE of Islamic banks and conventional banks, and the performance of conventional banks is better than the performance of Islamic banks in Egypt. On the other hand, there is no significant difference between the performance of Islamic banks and mixed banks, while there is a significant difference between ROA of conventional banks and mixed banks and no significant difference between ROE of conventional and mixed banks. The study also identifies the most significant indicators that contribute to assessing the performance of the three banking modes in Egypt.

EFFECT OF GROSS DOMESTIC PRODUCT, INFLATION, INTEREST RATE, PROFITABILITY AND CAPITAL ADEQUACY RATIO TO NON PERFORMING LOAN ON MIXED BANKS IN 2012-2015

Bank is a financial institution with the purpose of providing loans and services. Credit is the provision of money or product that is equated with money to make an agreement between the bank and the borrower where the borrower is obliged to fulfill its obligations within the period specified by the interest paid first. But in the process of lending to the public, the banks have problems such as credit risk, where the borrower is unable to repay the loan as agreed. So this raises the problem loans or bad credit. This study aims to determine the effect of economic factors, which uses variable Gross Domestic Product (GDP), inflation, and interest rates, as well as the internal bank uses variable profitability by proxy Return on Assets (ROA), and the Capital Adequacy Ratio (CAR ) against non-performing loans (NPLs). Data used in this study is taken from mixed banks year period 2012-2015. The analytical method used in this study is the linear multiple regression analysis. Variabel interest in this study is removed from the model because it does not pass the classic assumptions test. The research results are variable GDP negative effect on NPLs, the economy will increase the value of NPLs. CAR negative effect on NPLs, increasing the bank's capital will reduce the level of NPLs. ROA and inflation does not affect the NPL, any changes in these two variables do not affect the value of the NPL.

Determining the size of a mix bank in a mixed-model assembly line

This paper provides a guideline for determining the size of a mix bank using the number of sequences generated by the bank. A mix bank is a buffer system that consists of a set of parallel first-in, first-out lanes of a specific capacity. We derive the exact solution of the number of sequences generated in two special cases, the case where the capacity of each lane is only one and the case of two lanes with a capacity equal to the number of models minus one. The input for the mix bank is assumed to be a sequence of n different models. In the general case, upper and lower bounds on the number of sequences are presented by analysing the results of two special cases. A procedure for determining the size of a mix bank is demonstrated with a numerical example. Ways to use a mix bank to increase efficiency and flexibility are also discussed.

Determining the size of a mix bank in a mixed-model assembly line

Determining the size of a mix bank in a mixed-model assembly line

PERSAINGAN PERBANKAN BERDASARKAN JENIS BANK DI INDONESIA

This study employs census samples of 106 conventional banks actively operating activities of banking business in Indonesia. In this research use sample size 72 based on bank type. The method implemented in this study is a quantitative approach by applying secondary data taken from Monetary Authority and Financial Services Authority. In order to discover the banking industry competition in Indonesia. The data analysis in this study uses pool data which combine time series and cross sectional known as panel data. The result of the research shows that the market share of deposit of state-owned banks, private national banks of foreign exchange, national private non-foreign exchange banks, regional development banks, mixed banks, foreign banks have a significant positive effect on return on assets. The results of the tests show that market share of loan of state-owned banks, national private foreign exchange banks, national private non-foreign exchange banks, regional development banks, mixed banks, foreign banks have no effect on return on assets.

PENGUJIAN EFISIENSI PERBANKAN KONVENSIONAL DI INDONESIA MELALUI PENDEKATAN DATA ENVELOPMENT ANALYSIS (DEA)

The purpose of this study is to test the efficiency of conventional banking especially Bank Persero, Mix Bank and Bank Pembangunan Daerah (BPD) using a non-parametric analysis of DEA. This research calculates the value of efficiency to the Bank under the category Business Activity (BUKU) as seen from the core capital approach. The sample in this study amounted to 43 banks consisting of 4 Bank Persero, 13 of mix Bank and 26 BPD. The data is published financial statements of banks concerned with the study for 5 years starting from 2008 until 2012. Analysis of the performance efficiency using the Performance Improvement Management Software (PIM-DEAsoft-V3.2) to determine the efficiency of each bank, and then conducted a one-way ANOVA test and two-way to test differences in the average of each category of banks. Bank Persero gain greater efficiency than conventional Bank and BPD and 4th BUKU already doing business more efficient.
 
 Keywords: Bank Efficiency, DEA

Application of clinical cases related problem-based-learning in critical care medical education

Objective To evaluate the application of clinical cases related problem-based-learning (PBL) method in critical care medical standardized resident training program. Methods 84 residents were randomly divided into experimental group (n=42) and control group (n=42) by lottery way. The experimental group received PBL process during clinical case analysis while the control group learned completely through traditional teaching method. The residents' clinical competence were assessed by multiple scale mixed method including question bank examination (QBE), case-based discussion (CBD), direct observation of procedural skills (DOPS), simulation etc, and Likert-type scale questionnaire was used to evaluate the feedback of training residents. SPSS 17.0 was used to do line t test to the data of both groups. Results Finally 84 residents finished the study. There were no difference in the general conditions in two groups. The PBL group achieved higher examination score during QBE [(80.26±8.89) vs. (86.10±9.32)], CBD [(84.83±5.43) vs. (75.36±6.06)], DOPS [(88.81±6.68) vs. (82.70±6.98)], simulation [(79.86±10.09) vs. (72.71±9.30)]. Except two groups residents all gave high scores in enhancing cross connection in clinical knowledge [(4.786±0.470) vs. (4.571±0.859), P=0.16], and the questionnaire results showed that the resi-dents of PBL group gave higher points in exciting autonomous learning, improving clin-ical analysis ability, accelerating clinical thinking establish, developing independent thinking habits, improving the clinical communication skills and teamwork ability (P<0.05). Conclusion The clinical cases related PBL method can improve the training effects during critical care medical standardized resident training program. It can be used broadly after adapting modification in critical care medical education. Key words: Problem-based learning; Intensive care medicine; Standardized resident training program; Clinical competence assessment; Students' feedback