Performance Of Banking Sector Research Articles

ENVIRONMENTAL FACTORS AND BANK PERFORMANCE: HOW FINANCIAL MARKET ROLE PLAYERS REACT IN MALAYSIA?

This study is applied in the region of Malaysia with a prime objective to investigate whether environmental performance indicators are impacting on banking sector performance during the period 2014-2018. For this purpose, this study has considered a sample of 6 Malaysian banking firms working under the regulator of Bank Nagara Malaysia. considering the both dimension of time series and cross section, three panel models known as simple regression, fixed and random effect are statistically applied. However, correlation matrix between the variables is also presented for the better understanding. Findings through panel model shows that Eco. System vitality is adversely affecting the EBIT, in all three models, whereas environmental health is a negative indicator of EBIT. for EAT, eco system vitality is again providing the evidence for adverse influence during the study period. In addition, black carbon emission intensity is causing a decline in EAT in both simple regression and fixed effect estimator. For ZROE, environmental health, eco system vitality are negative while carbon emission intensity is positive sign. For the last indicator of banking sector performance, it is found that eco. System vitality is a negative sign causing a decline in ZROA during 2014-2018. it is suggested that there is a strong need to control the adverse impact of some of the environmental factors on the banking industry of Malaysia, where different public sector departments are held responsible. For the future studies, this study suggest considering all the banking firms, long data period and other regional economies.

Balanced scorecard-based performance assessment of Turkish banking sector with the Analytic Network Process (ANP)

In the last decade, Performance assessment of banking sectors in advanced economies became a prominent issue investment decision. This paper aims to evaluate the balanced-scorecard-based performance of the Turkish banking sector using the Analytic Network Process Approach. Within this scope, all 33 deposit banks were intended to analyze out of 34 banks. Within this scope, we made an analysis in order to determine which perspectives of the balanced scorecard approach are appropriate for each type of bank (state banks, private banks, foreign banks). In this study, we used Analytic Network Process (ANP) approaches so as to achieve this objective. With a balanced-scorecard performance assessment of the banking sector using the ANP approach, all the factor priorities have been extracted and normalized to one for each cluster and final priorities have been obtained. The final priorities and rankings of each perspective of the balanced scorecard and the type of bank ownership have been assessed in the model. According to the results of the analysis, Findings demonstrate that (i) financial factor of balanced scorecard approach has the first rank with 65.7 percent; (ii) Customer perceptive is in the second rank with 22.1 percent. (iii)Third and fourth ranks have close results, (iv) learning and growth stay in the third rank with 6.3 percent (v) internal factor has the weakest importance with 5.9%, (vi) state banks into bank ownership have the highest rank with 53.9 percent, (vii) Private owned banks are the second in the relative performance of the bank groups with 36.1%, (viii) Balanced scorecard based performance of foreign banks are replaced in the last order with approximately 10%.

Impact of External Governance Mechanism on the Performance of Listed Banks of Pakistan with the Moderating Role of Government Ownership

This research aims to examine the external governance process boosts the performance of Pakistan's listed commercial banks by estimating the return on equity (ROE) and earnings per share (EPS). The research involved external governance mechanism with the moderating role of government ownership. The study's sample structure consists of Pakistan Stock Exchange (PSX) listed banks with the existence of government ownership from 2014 to 2018. Data is obtained as well from financial statements, shareholding trends, and the Credit Rating Agency of Pakistan (PACRA). To meet the specific aim of the research and to satisfy the goals of the analysis, the panel data methodology (fixed effect and random effect model) has been applied. The findings have shown that the external governance system plays an important role in the banking sector's accountability and performance. Government ownership may also improve banking institution efficiency by improving external governance mechanisms. This study will allow commercial banks to overcome the challenges and boost efficiency with the external governance mechanism and devise better working strategies. This study makes it easier for the bankers' rulers to run the external governance system to strengthen bank efficiency. This work is unique because no one defined an external governance system with government ownership as a moderating role.

Impact of Rewards on Employee Performance: A Study on Private Banking Sector in Bangladesh

Reward management is a function of human resource management which is considered as a strategic asset for any organization. Therefore, this study is aimed to illustrate to what extent do rewards has an impact on employee performance in private banking sector in Bangladesh. More specifically this study has investigated the relationship between extrinsic reward, intrinsic rewards and employee performance level in private banking sector in Bangladesh. A total of 61 employees from 17 private banks were selected as sample to collect data through structured questionnaire including 11 questions. Descriptive statistic was used to provide a narrative view of the study while multiple regression analysis was undertaken as a statistical tool to do hypothesis testing. The result indicates that there is a strong positive relationship between intrinsic rewards and employee performance meaning that employees are highly interested to learn through training, solve complex challenging task, recognize by organization, receive feedback from managers and achieve organizational goal. The research result can be used as a guideline for other private banks in Bangladesh to have a better understanding of significance of reward system on employee performance that will help to develop a strategic reward system for sustainable competitive advantage

Does well banking performance attract FDI? Empirical evidence from the SAARC economies

PurposeThis paper empirically examines the perceived relationship between banking sector performance and FDI inflows, thereby highlighting an underexplored area in the existing literature.Design/methodology/approachTo provide evidence from the South Asian context, this study selected five economies of the same region based on the data availability. A panel dataset, collected from the internationally reliable sources for the period 1998–2017, is analyzed with the help of different econometric techniques, including pooled least squares, fixed effects, generalized least square and two stages least squares.FindingsThe results indicate a significant negative relationship between banking sector performance and FDI inflows while demonstrating a significant positive association of inflation and trade openness with FDI inflows Moreover, higher per capita income, which is one of the indicators of a growing economy, exerts a statistically significant positive impact on FDI inflows. Finally, institutional factors have not played a significant role in attracting FDI in the sampled countries.Practical implicationsThe results demonstrate a unique outcome from the perspective of the relationship between banking sector performance and FDI inflows, and hence policymakers of the developing countries in general and South Asian countries in particular would benefit from the current study significantly.Originality/valueThe obtained results are original as we have provided comprehensive evidence on the relationship between FDI and banking sector performance in the SAARC context for the first time.

Assessing the Islamic Banks Performance in the Gulf Cooperation Council Countries: An Empirical Study

This paper aims to ask lots of questions about the effect of various factors on the performance of the Islamic Banking Sector (IBS) in the Gulf Cooperation Council (GCC) countries. Both panel data analysis relating to random effect (RE) regression and generalized method of moments (GMM) in the system are utilized to quantify the relationship between board features and banks performance. The population of this research was 40 Islamic banks in the GCC zone with the perception went from 2005 to 2016. Our outcomes point to show that regression with GMM in system confirms the RE results just for the degree of bank capital, demonstrating a positive and significant connection between this variable and the bank performance at a 5% criticalness level. Notwithstanding, sharia board size and board duality apply a positive and huge hit on bank performance just when RE regression technique is utilized. These discoveries are applicable and valuable contribution for Islamic banks in dealing with their speculations inside their establishments. All the more significantly, Islamic banks in GCC should allow more significance to the degree of the capital bank, the structure and nature of the board, and the board duality to improve their performance.

Priorities for upgrading the Russian lending system in the current circumstances

Subject. The article focuses on the lending system in the banking sector of Russia. Objectives. We examine and set priorities for modernizing the Russian lending system in the current circumstances. Methods. The article represents the statistical analysis of macroeconomic developments, estimates of the banking sector performance. Results. We indicate what the financial system shall mainly address and how banking resources can increase their contribution to the socio-economic development of the territory. The financial position of customers shall be evaluated on the differential basis, considering the industrial specifics of their business, inter alia, for making loan and similar reserves, imposing less strict requirements to additional information on borrowers. Conclusions and Relevance. Macroprudential regulation is one of the most important and extensive objectives to improve the financial market in Russia. The mandatory centralized clearance seems promising with respect to OTC derivatives if viewed by assessing the economic motivation for using the clearance that involves the central counterpart, as compared with bilateral deals. The actions are supposed to positively influence the development of the national economy. The findings can be used to examine development trends in the Russian banking sector.

The Impact of Employee Engagement on Job Performance and Organisational Commitment in the Egyptian Banking Sector

During the past two decades, employee engagement became a very popular managerial construct. Organisations use different engagement building tools in order to stay competitive and improve performance. Though there is an increasing contribution in human resource consulting agencies on the concept of employee engagement, yet there is a shortage of academic studies on that construct, especially in emerging economies countries. This engagement gap grew more in importance amidst the waves of ongoing recession and resource scarcity battles prevailing in the Middle Eastern Region, in general, and in Egypt in particular. This is an exploratory study that aims to identify the key drivers of employee engagement within the Egyptian context. It also studies the impact of employee engagement on job performance and organisational commitment based on social exchange theory (SET). A survey questionnaire was developed and validated. Regression analysis was used to predict and explain the proposed relationships. The study was conducted on 245 bank employees from several private and public banks operating in Cairo-Egypt with a response rate of about 81.6 % ( 200 employees) Pearson correlation matrix and regression were used to predict and estimate the relationships. Regression results indicated that leadership and organisational justice were the most significant drivers of employee engagement.. The mediation effect was confirmed. Employee engagement had significant impact on job performance, but less impact on organisational commitment. This study adds to the very few academic studies that have empirically investigated a comprehensive model of employee engagement drivers and outcomes. To the best of the author's knowledge, such a study is the first of its kind undertaken in the Egyptian context.

Effect of Ergonomic Factors on Employees Performance in Nigeria’s Banking Sector

The study examined the effect of ergonomic factors on employees’ performance in the Nigerian banking sector, using banks in Anambra State, Nigeria as the study area. In investigating the effects of these factors on employees’ performance, we raised a literature review and partitioned it into three main sections of conceptual review, theoretical exposition and empirical review. The study adopted descriptive survey design and the main statistical tool of analysis were Summary Statistics and Chi-Square (c 2 ) test of independence. All tests were conducted at 0.05 level of significance. Major findings from the study were that physical workplace environment significantly affects employees’ performance in the banking sector in Nigeria. Similarly, the study found also that engaging on repetitive task assignment and insufficient rest time hampers employees’ performance. The study concludes that having work/task design that are repetitive makes employees feel tired and bored and that insufficient rest time for the employees also leads to health conditions that negatively affects performance in the banking industry in Nigeria. It was recommended among others that the management should encourage the employees to perform better by providing conducive workplace environment both in design of tasks and indoor office environment. Keywords: Ergonomic factors, Employees’ performance, Banking sector, Nigeria. DOI: 10.7176/EJBM/12-23-10 Publication date: August 31 st 2020

High Involvement Work System and Performance of Indonesian Banking Sector

This research aims to analyze the effect of High Involvement Work System (HIWS) and technologies adaption on the performance in Indonesian banking sector and also determine whether the perceived leadership behavior successfully moderating the effect of HIWS and technologies adaption on the banking sector performance in Indonesia. The data of 96 respondents were conducted by questionnaire that measured using the 1 (totally dissagree) to 5 (totally agree) Likert score and analyzed using the associative method using PLS software. The result indicates that the application of HIWS in the banking sector has a positive but not significant effect on the performance. While the test results state that technologies adoption significantly influences positive performance in the banking sector. For moderation variables in the form of perceived leadership behavior weaken the influence of HIWS on performance, otherwise, it strengthen the influence of technology adoption on the performance of Indonesian banking sector.

The Impact of Human Resources on the Banking Sector Performance in Syria

This research deals with the relationship between some of the general characteristics of human resources in the Syrian banking sector, such as the level of education, training and experience, and the operational financial efficiency of this sector. The data for the human resources is collected from the employees of several private banks in Syria, then testing the relationship with the financial data derived from the annual financial statements published by those banks for year 2019, the same year of data collection. This study is the cornerstone of complementary studies, which is more specialized in the field of human resources and financial performance. The study concluded that there is no effect of the human resources efficiency on financial performance for year 2019, which raises the urgent need of conducting similar research for a range of years and more comprehensive study on the factors that effect financial performance whether in the Syrian market or other markets as a part of behavior analysis on financial market.

Analysis of the Quality of the Employee–Bank Relationship in Urban and Rural Areas

Banking sector performance is directly related to the economic performance of the country. This research is an effort to establish the parameters of job satisfaction among bank employees and to ascertain whether there were differences in job satisfaction between employees in urban and rural branches. A randomly selected sample was made of bank employees in the Republic of Serbia. To date, the relative job satisfaction of bank employees in urban and rural areas has not been investigated, and for this reason, it is important to analyze the different facets of job satisfaction such as salaries, cooperation with closest associates, promotion, remuneration policy, cooperation and relationship with superiors, and the nature of the job. The bank employees’ satisfaction with their salaries has a major influence on total job satisfaction. Perceptions of teamwork effectiveness and its relationship to overall job satisfaction were analyzed. Team quality has the greatest influence on the bank employees’ job satisfaction. These insights can offer guidance for future action on building the quality of the employee–organization relationship.

The Nexus of Training, Employee Commitment and Employee Performance in Nepalese Commercial Banking Sector

This research attempts to measure the nexus of training, employee commitment, and employee performance in the Nepalese commercial banking sector. Descriptive and causal research design is used to achieve the objectives of the research. Structured questionnaires were made, and the survey was done to collect primary cross-sectional data. Employees of the commercial banks in Kathmandu Valley who have been involved in the training program at least one time are included in the survey. Judgmental sampling was taken. This research confirmed that the training need assessment, mode of training, and training feedback significantly influence employee commitment, and employee commitment influences employee performance in commercial banks. So, bank managers must accept the nexus of training in employee commitment and employee performance.

Assessing the Effects of Credit Risk Management on Financial Performance of Selected Banks in the Ghana Stock Exchange

The study explored the effect of credit risk management and its relationship to financial performance in the Ghanaian banking sector. This study adopted the explanatory research design. In this study, census sampling was used to select four (4) banks. These banks were Access Bank, Agricultural Development Bank, Ghana Commercial Bank, and Republic Bank. Data for the study constituted secondary data which were obtained from published audited annual report of the banks and the Ghana Banking Survey. The study adopted the regression analysis. The results indicated that credit risk has a negative relationship with performance in the banking sector. Specifically, credit risk related negatively with capital adequacy ratio, asset quality, management quality, earnings and profitability and liquidity. The concept is that increase in credit risk means bad credit risk management and vice versa. The implication therefore is that an increase in credit risk management give rise to increase in financial performance. The study recommended that training programmes be organized for credit officers on effective client monitoring. For the customers, there is the need to design and implement adequate credit management programmes to educate clients on proper management of loans. The policy and procedures should be living documents that reflect current and emerging credit practices. Keywords: Credit Risk Management, Financial Performance, Ghanaian Banking Sector. DOI: 10.7176/RJFA/11-12-08 Publication date: June 30th 2020

Does Intellectual Capital Matter? A Case Study of Indonesia Sharia Banks

This study aim is to examine the impact of Intelectual Capital (IC) on financial performance in the Islamic banking sector in Indonesia. We adopt the Pulic’s value-added intellectual coefficient (VAIC™) as the widely used measurement for IC. The paper used secondary data derived from the annual reports of eleven Islamic banks from 2012 to 2016. This study uses firm size and level of risk as a control variable. We utilise the resource dependency theory as an analytical tool. The findings show that the IC does not significantly matter and influence the profitability of Islamic banks. However, the results also show a significant impact on human capital and structural capital on profitability of sharia bank. The findings can be useful as an input for the practitioners in Islamic banks in managing their investments in IC in Indonesia Islamic banks. This paper also contributes to the theory and literature by particularly the adoption of resource dependency theory to analyse the IC in Islamic banks.

International Financial Reporting Standards (IFRS) Adoption and Banks Performance in Nigeria : A Study of Selected Banks

The pace of globalization and integration of national financial markets has stimulated the need for a common financial language in the presentation financial reporting in order to facilitate efficient investment and financial decisions. Following the adopted the IFRS in Nigeria, several studies have been conducted on the performance of banking sector but majority focused on non-financial information. Thus, this study evaluates the impact of IFRS adoption on financial performance of Deposit Money Banks (DMBs) using ten (10) disclosure items obtained from IFRS checklist and extracted from selected DMBs financial statements and account between 2007 and 2017. The obtained data were analyzed with the Analysis of variance (ANOVA) & Bland Altman Analysis (BAA) and the results revealed that there is no significance difference in banks’ profit after tax measurement using the GAAP and IFRS as all the obtained parameters failed to yield significant results at 5% level of significance. Similarly, that there is no significance difference in banks’ return on asset measurement using the GAAP and IFRS as the obtained parameters showed insignificant results. However, there is a significance difference in banks’ total asset measurement using the GAAP and IFRS. In view of the major findings, we concluded that International Financial Reporting Standards has a significant effect on total asset measurement with insignificant effect on profit before tax and return on assets.

Performance Analysis of Indian Banks – A comparative study of Commercial Bank and Urban Cooperative Bank

Since the start of economic reforms, the banking sectors in India has undergone a lot of churn both in terms of competition and regulation. The Government of India took many initiatives to reform the Cooperative Banking Sector. These Banks must adhere to the various risk management norms of the Government. Thus, the basic intention of this paper was to understand the preparedness of Indian banks and in specific Urban Cooperative Banks (UCB’s) in the context of economic reforms, recent policy developments. Hence, we tried to evaluate the performance of selected banks form the Urban Cooperative and a commercial bank. Evaluation of performance of banking sector is one of the most effective measure as well as indicator in order to evaluate the soundness of any economy. We did the analysis through the CAMEL analysis for the selected banks namely of AXIS and NKGSB bank for the period of 2015-16 to 2017-18 and are rated accordingly. The result of this research study indicates that the banks have been progressive, but in the wake of any crisis in the financial system or stronger regulations, it might be difficult for these banks to sustain their performance.

Family-Friendly Human Resource Management Practice and Employees’ Behavioural Outcomes in Nigerian Banking Sector

This study investigated the impact of family-friendly human resource practice on employees’ behavioral outcomes (organizational commitment, job performance and workplace spirituality) in Nigerian banking sector. 239 bankers participated in the study. The study employs cross-sectional survey research design. Questionnaire was used to obtain the relevant data. The study used simple random sampling method. The collected data were analyzed using Pearson Product Moment Correlation, Regression and T-test analyses with the aid of statistical package for social sciences (SPSS).The study found that there is a statistically significant contribution of between Family-friendly human resource practice (FFHRM) on Organizational Commitment (F1,237 = 46.003, p<0.05). Further, it was found that there is a positive correlation between FFHRM and Organizational Commitment (r =.461; p<0.05), job performance (r =.327; p<0.05), and workplace spirituality (r =.253; p<0.05). Workplace spirituality was found higher among female respondents than the male respondents. The study concluded that FFHRM is significant antecedent to employees’ behavioral outcomes (organizational commitment, job performance and workplace spirituality) in Nigerian banking sector. Based on the conclusion, the study recommended that organizations should encourage and give FFHRM practice the priority it deserves and be willing to carry it out with new ideas. Keywords : Family-friendly human resource practice, job performance, organizational commitment, workplace spirituality DOI: 10.7176/EJBM/12-11-04 Publication date: April 30 th 2020

Technology Impact on Banking Sector Performance with Reference to Select Private Sector Banks

The present study is focused on the technology impact on the banking sector growth in 4G period. The usage of technology by the banking customers increased enormously in 4G compared to other telecom generations i.e., 2G and 3G. The study has considered the high technology spending private banks and B2C segment digital transactions (i.e., Neft, Rtgs, ATM, Mobile, Debit card and Credit Card transactions) growth on the business of the banking sector examined with the panel data in E-Views software. The study has considered the time series data of the selected five private sector banks digital transactions and constructed the Banking Technology Index in 4G period. The study result reveals with the ordinary least square that the mobile transactions and RTGS are having the positive impact on the performance of the Banking technology index. The BTI impact has been examined on the business per employee of the selected private sector banks and the result stated that the BPE got reduced significantly in 4G period. This paper is useful to the bankers, regulators and various stakeholders of the bankers.

DAMPAK NILAI TUKAR DAN RISK-BASED BANK RATING TERHADAP PREDIKSI KONDISI PERBANKAN INDONESIA

Model predictions to asses the problematic conditions in banking sectors need to be developed. It because by knowing early of systemic risks condition, policymakers can take anticipation actions. In this study, the financial ratios used are RiskProfile, Good Corporate Governance, Earning, and Capital (RGEC) rating based approach. The risk profile is proxied by the Non Performing Loan (NPL) which represented by the Net Open Position (PDN) for market risk, and Loan to Deposit Ratio (LDR) for liquidity risk. Meanwhile, good corporate governance aspect is not investigated since the aspect is more qualitative. Then, the profitability aspect proxied by the Return on Asset (ROA) and Net Interest Margin (NIM), while the capital aspect proxied by the Capital Adequacy Ratio (CAR). In this study added one macroeconomic variables, namely the Exchange Rates. The study was conducted in 2009-2013 to predict and analyze the performance of the Indonesian banking sector, particularly for Private National Banks which are the most susceptible to problematic conditions. Using the logistic regression model, the results showed that the variables of NPL, PDN, ROA, and Exchange Rates are significantly effect on the probability of occurrence of the condition of troubled banks.