Performance Of Commercial Banks Research Articles

The Effect of Credit Risk on the Financial Performance of Commercial Banks in Vietnam

The Effect of Credit Risk on the Financial Performance of Commercial Banks in Vietnam

The Effect of Istishna Financing, Mudharabah Financing and Ijarah Financing on Financial Performance in Islamic Commercial Banks

The purpose of this study is to see the partial and simultaneous effects of istishna, mudharabah and ijarah financing on profitability (ROA) of Islamic Commercial Banks in Indonesia. The method is a descriptive quantitative approach. The sample and population in this study are Islamic commercial banks in Indonesia in 2018-2023 on a quarterly basis. So that there are 24 samples in this study. Isthisna financing results in the conclusion that the level of profitability (ROA is significantly negatively affected by istishna financing. In addition, mudharabah financing significantly and negatively affects the level of profitability (ROA). Furthermore, it is shown that ijarah financing does not significantly affect the level of profitability (ROA). Simultaneously, it is concluded that istishna financing and mudharabah financing have a significant negative effect on the level of profitability (ROA). Then ijarah financing has no significant effect on the level of profitability (ROA). Data analysis used in this study requires descriptive analysis test, classical assumption test and hypothesis testing. The data used is secondary from Islamic banking statistics with the Financial Services Authority (OJK) website.

Investigating Performances of Commercial Banks in the UK by Using Grey Relation Analysis

This study employs Grey Relational Analysis to assess the financial performance of commercial banks in the UK banking system. The main aim of the study is to identify influential indicators that have an impact on the banks’ performance. Identifying influential indicators helps banks determine strategies, capitalize on strengths, address weaknesses, and assure stakeholders of their resilience and profitability in dynamic markets. Using data from 2020 to 2022, five categories—profitability, interest ratio, liquidity and funds, asset quality, and capital adequacy—were analysed. This period was chosen to reveal the impact of Covid-19 on the performance of banks in the UK. Barclays plc consistently emerges as a top performer, showcasing robust financial management. Nationwide Building Society maintains stable performance with strengths in asset quality and funding. Lloyds Banking Group demonstrates stability with good profitability and capital adequacy. Santander UK plc exhibits fluctuating performance. NatWest Group plc shows moderate fluctuations, while HSBC Holding plc and Standard Chartered plc face specific challenges. According to the results of this study, Grey Relational Analysis (GRA) is a useful tool that aids strategic decision-making and risk management. It benefits the banking sector by supporting profitability, stability, and performance. Effective interest rate management is a significant factor in maintaining stability during market fluctuations. High asset quality strengthens bank performance, while efficient liquidity management is crucial for the sustained success of banks.

Impact of investment activities on the financial performance of Vietnamese commercial banks

Impact of investment activities on the financial performance of Vietnamese commercial banks

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADA BANK UMUM SYARIAH DI INDONESIA

This research aims to empirically prove the influence of Good Corporate Governance on the financial performance of sharia banking. Based on the purposive sampling method, the samples obtained were 7 sharia banks that met the criteria. Research data was obtained from annual reports for the 2016-2021 period. The data in this research is quantitative data using secondary data. The analytical method used is multiple linear regression analysis of panel data. The research results show that the board of commissioners has a negative and significant effect on financial performance, because too many board of commissioners can reduce the company's profitability, the board of directors has a positive and significant effect on financial performance, the sharia supervisory board has a positive and significant effect on financial performance and the audit committee does not influence on financial performance. Together the board of commissioners, board of directors, sharia supervisory board and audit committee influence Return on Assets. Regarding efforts to improve financial performance, sharia commercial banks should focus more on the board of directors and sharia supervisory board. Because the better the board of directors and sharia supervisory board, the better the financial performance of sharia commercial banks in 2016-2018.

Perbandingan Kinerja Keuangan Perbankan Berbasis Syariah Dan Konvensional (2017-2020)

This research aims to determine whether there is a comparison between the financial performance of conventional commercial banks and sharia commercial banks. To see this comparison, this research uses four ratios, where the capital ratio uses the CAR (Capital Adequacy Ratio) ratio, the liquidity ratio uses the LDR (Loan to Deposit Ratio) ratio, the profitability ratio uses the ROA (Return On Asset) ratio, and the turnover ratio activities using the TATO (Total Asset Turnover) ratio. The method used in this research is to use the Independent Sample T-test to compare the performance of conventional commercial banks with sharia commercial banks. The type of research used in this research is comparative research. The research results show that there is a comparison between the financial performance of conventional commercial banks and sharia commercial banks when viewed from the CAR, LDR and ROA ratios, while in terms of the TATO ratio there is no comparison between the performance of the two banks. If viewed from the mean (average) value of the CAR, LDR and ROA ratios, the financial performance of conventional commercial banks is better than sharia commercial banks. Meanwhile, if you look at the TATO ratio, you don't see a much different comparison. Overall, it can be seen that conventional commercial banks are superior to sharia commercial banks. This is because conventional commercial banks have been operating much longer than sharia commercial banks which are relatively new. So sharia commercial banks need to increase public trust so that the existence of sharia banks in the eyes of the public can be greatly increased.

Revenue Diversification and Financial Performance of Commercial Banks, Kenya

Revenue Diversification and Financial Performance of Commercial Banks, Kenya

The Impact of Audit Committees on the Financial Performance of Commercial Banks in Burundi

The Impact of Audit Committees on the Financial Performance of Commercial Banks in Burundi

The impact of green finance and technology on the commercial banks’ profit and risk

This paper investigates the impact of green credit on the performance and risk of Chinese commercial banks, and also explores the impact of green technology on this mechanism. The results show that for all banks, green loan balances have a significantly negative impact on net profit. While for large, small and medium sized banks, it also reduces and increases bank insolvency risk respectively. Therefore, our findings suggest that the standard mechanism for measuring the benefits of green credit should be improved and the regulatory mechanism for green credit should be strengthened.

Effect of Interest Rate Spread on Performance of Commercial Banks in Kenya

Effect of Interest Rate Spread on Performance of Commercial Banks in Kenya

Research on the Impact of Digital Transformation on Commercial Bank Performance

This paper takes 60 commercial banks undergoing digital transformation from 2015 to 2021 as samples and uses the Peking University Digital Transformation Index to empirically test the impact of digital transformation on commercial banks’ operating performance. The results show that: Digital transformation has a positive impact on the business performance of commercial banks; the impact of digital transformation on the operational performance of commercial banks of different sizes is heterogeneous. At present, the digital transformation of China’s commercial banks is still in the initial stage, and there is a lack of successful experience in the direction and measures of transformation, which plays a certain reference role for the future development of commercial banks.

Empirical Study to Evaluate Financial Fitness of Listed Commercial Banks of Pakistan

The main purpose of this research is to find the effect of financial fraud, bank size, liquidity, solvency, and efficiency on the financial performance of selected Pakistani commercial banking sector. This research is conducted for assessing the financial stability of the commercial Banking sector of Pakistan. In this research, the ratio analysis technique is adopted for investigating the financial performance of the Banking Sector for the period 2012 to 2018. This study found that bank size, financial fraud, efficiency, solvency and liquidity have a significant impact on the financial performance of commercial banks in Pakistan. This research suggested that commercial banking zone working in Pakistan should be brought into being place fraud discernment appliance by framing up a well-organized and systematic, well-established, and reliable and operating fraud detection sub-division to supervise all the transactions that are contemplated vulnerable to fraudulent practices to minimization vice for them to maximization of profits for better monetary/financial progress/performance.

THE INFLUENCE OF FINANCIAL TECHNOLOGY AND LIQUIDITY ON THE FINANCIAL PERFORMANCE OF BANKS IN INDONESIA

The purpose of this study is to evaluate how financial technology and liquidity levels affect the financial performance in conventional commercial banks in Indonesia that are listed in the Financial Services Authority. The research population includes conventional commercial banks listed on the Indonesia Stock Exchange from 2017 to 2023. The sampling technique is conducted through purposive sampling. The data analysis method uses panel data regression analysis. The data used are from 49 banks with a total of 176 financial reports, and hypothesis analysis is conducted using SPSS software. The research results indicate that financial technology has an impact on the financial performance of the banking sector in Indonesia, while liquidity levels also play a role in influencing the financial performance in the same banking sector.

E-Banking Strategies and Financial Performance of Commercial Banks in Kenya

E-Banking Strategies and Financial Performance of Commercial Banks in Kenya

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.

Impact of Corporate Governance in the Application of the Financial Standard for Sustainability Accounting FNO 101

The study aims to investigate the impact of corporate governance in the application of the financial standard for sustainability accounting FNO 101 . To achieve this aim , the study follows the descriptive analytical approach using the statistical package for social sciences (SPSS) in analyzing data and testing hypotheses . A questionnaire was determined and distributed for 30 practitioners of which 28 were valid for analysis . The most important conclusions were that governance mechanisms contribute to improving financial performance , which improves the quality of financial reporting to enhance confidence in financial statements through the application of governance indicators according to (GRI) standards . In addition, the application of the financial standard for sustainability accounting FNO 101 contributes to improving the financial performance of commercial banks listed on the Iraq Stock Exchange . One of the most important recommendations was the need for the economic entity to adhere to the application of governance rules and the application of the financial standard for sustainability accounting FNO 101 and to deepen and develop concepts , by holding specialized training courses for their employees , and to increase the level of disclosure and transparency in financial reports , and to make them available to all stakeholders to give shareholders and investors security for their money invested in this entity work to disseminate the concept and culture of governance and the financial standard for sustainability accounting FNO 101 in a wider way to all relevant parties, and to issue bulletins and instructions that reflect their concepts and applications .

Impact of Emotional Intelligence on Organizational Performance in Commercial Banks, Itahari, Sunsari, Nepal

The ongoing debate surrounding Emotional Intelligence (EI) and Organizational Performance (OP) has been a consistent topic of discussion across various cultures worldwide. This article aims to assess the current status of EI and OP in Nepalese Commercial Banks, analyze the relationship between EI and OP, and measure the impact of EI on OP. Employing a deductive research approach, the study utilizes a descriptive and cross-sectional research design, with the population comprising all employees in commercial banks in Itahari, Sunsari, Nepal. The sample size is 167, chosen through convenience sampling, employing a structured questionnaire with a five-point Likert scale to collect primary data. Mean and Standard Deviations assess the status of EI and OP, while Pearson correlation matrix and linear regression analysis measure the impact of EI on OP. Chronbatch alpha is used to test the reliability of constructs. The results indicate a positive presentation of both EI and OP in commercial banks, with statistically significant relationships within the model. The analysis suggests that employees with high EI exhibit higher OP compared to those with lower emotional intelligence. Notably, social awareness emerges as a key construct significantly influencing OP, followed by relationship management and self-awareness. The findings propose potential benefits for banks in enhancing EI levels during recruitment, training, and development programs for their personnel.

Effect of Agency Banking Services on Operational Performance of Commercial Banks in Rwanda. A Case of Bank of Kigali Plc

Effect of Agency Banking Services on Operational Performance of Commercial Banks in Rwanda. A Case of Bank of Kigali Plc

Board Characteristics and Bank Stock Performance: Empirical Evidence from the MENA Region

This study examined the relationship between the board characteristics and stock performance of commercial banks. Our analysis is based on a sample of 65 banks across 10 MENA countries and their quantitative data extracted between 2013 and 2022. This research employed pooled OLS, and fixed and random effect regression to confirm the association between board size, board independence, number of board meetings, and CEO duality with stock performance measured by the bank’s share price and market-to-book ratio. Further, several control variables were utilized such as the bank’s capital adequacy, profitability, and size. The empirical findings reveal that board independence positively affects the bank stock performance while the board size shows a negative relationship. This suggests that banks with fewer board members and high independence levels have their shares outperforming others. However, we found that having frequent board meetings per year and separate roles for the CEO and chairman have no impact on bank stock performance. Moreover, the findings indicate that the bank’s capital adequacy, size, and profitability have a positive effect on the stock performance. To test the robustness of our analysis, we implemented a one-limit Tobit model, which enables lower-bound censoring, and obtained similar findings thus confirming our hypotheses. From a practical perspective, our findings highlight the importance of the board size and the directors’ independence to MENA regulators and policymakers in an effort to implement an effective corporate governance system. Specifically, MENA banks are advised to decrease the number of board members, and this should reduce the number of annual board meetings which, in turn, should maximize performance.

Credit Risk and the Financial Performance of Commercial Banks in Somalia.

The operation of commercial banks in Somalia unfolds amidst formidable economic challenges stemming from political instability, ongoing conflicts, and a frail institutional framework. Nevertheless, Somalia’s financial sector exhibits resilience, with several commercial banks endeavoring to address the financial needs of businesses and individuals nationwide. These banks play a pivotal role in mobilizing savings, facilitating transactions, and providing credit, thereby supporting economic activities in Somalia’s predominantly cash-based economy. This study explored the impact of credit risk on the financial performance of Somali commercial banks, employing Modern Portfolio Theory (MPT) as the theoretical framework. Adopting a descriptive survey research design, secondary data from licensed commercial banks and the Central Bank of Somalia were analyzed over ten years (January 2014 to December 2023) using panel regression analysis. Findings reveal a moderate negative correlation between credit risk, measured by Bad Debt Expense Ratio (BDER), and financial performance, indicated by Return on Equity (ROE). Statistical tests confirm the significance of this relationship, emphasizing the importance of robust credit risk management practices for sustaining favorable financial outcomes. Recommendations include uniform improvement in risk management practices across the sector and proactive measures to mitigate emerging credit risk factors. Enhancing risk management frameworks is vital for ensuring continued financial stability and performance in the Somali banking industry.