Performance Of Commercial Banks Research Articles

Why cognitive absorption is not enough: The role of knowledge absorption capacity and technological opportunity for individual learning

The purpose of this paper is to address the basic question why does high absorptive training programmes are not always beneficial for individual level learning? Thus, we seek to understand when and how cognitive absorption is beneficial for individual learning. The proposed model was tested using data obtained in a field study (N = 371) and in an experiment (N = 119). For field study, data was obtained at two points in time from three data sources (co-workers, subordinates, supervisors) working at a private commercial bank operating in Pakistan. For laboratory experiment, data was collected from the business students of a private sector university in Pakistan. The obtained data for both studies were analysed for random coefficient models with Mplus. Based on the motivation-ability-opportunity theory of behaviour, we proposed a model. It was found that cognitive absorption and highest individual learning was contingent upon the individual level knowledge absorption capacity. It was further found that training programmes with high cognitive absorption are likely to produce high levels of individual learning when the participants also have both high level of knowledge absorption capacity and technological opportunity. With this research, we inform practitioners that in these learner-focused trainings, personal characteristics of the participants and technology play vital role in determining effectiveness for high level of individual learning. The research findings will help practitioners understand what they need to add in training programmes for high level individual learning experience. Doing so will bring best value in form of higher learning to the cost of trainings.

Effect of Green Finance on Environmental Performance of Banking Institutions: A Critical review

Effect of Green Finance on Environmental Performance of Banking Institutions: A Critical review

Liquidity Adequacy and Financial Performance of Commercial Banks in South Sudan

Commercial banks in South Sudan have shown deteriorating financial performance in the period 2017 to 2021. This has been shown by the substantial number of commercial banks making losses and with the profit-making ones exhibiting fluctuating performance as well as reducing financial performance levels. For example, only 25% of the commercial banks made a profit in the year 2021 with the majority making losses. Further, the sector has made losses for the last five years. For example, Liberty Commercial Bank recorded a decline in ROA from 0.58 in 2018 to 0.53 in 2019 and a further decline to 0.51 in the year 2020. If nothing is done to improve South Sudan's commercial banks' financial performance, then the contribution of the banks to the country’s welfare will be watered down. The primary aim of this study was to determine the effect of liquidity adequacy and the financial performance of commercial banks in South Sudan. An explanatory research design was used in the study. The target populace was commercial banks in South Sudan. 29 commercial banks existed in South Sudan between 2017 and 2021. The study used purposive sampling to sample 23 banks that were in operation between 2017 and 2021. Secondary information was used in the study. For analysis, the obtained information was cleaned and imported into STATA 17. Descriptive statistics and regression analysis were conducted. The inferential statistics used were correlation and regression. The outcomes further showed that the mean of liquidity adequacy from 2017 to 2021 for the commercial banks in South Sudan was 3.178, with the least liquidity adequacy being -0.068 and the most being 64.297. Trend outcomes were clear that liquidity adequacy was increasing amongst South Sudan commercial banks. Regression outcomes were clear that operational adequacy was positive and significantly impacted by the performance. The study notes that though liquid assets attract some returns to commercial banks, too much of it depletes the profitability level of banks. Because highly liquid assets are linked to lower returns than riskier assets, the study advises banks to avoid keeping excessive amounts of liquid assets. Therefore, owning too many liquid assets has a greater opportunity cost than benefit. Consequently, it is advised to have the ideal ratio of liquid assets to total assets. Furthermore, during times of weak economic conditions, the report advises banks to keep a greater proportion of liquid assets. Therefore, it is advised that bank management provide liquidity management with the necessary consideration.

Analysis Of The Effect Of Intellectual Capital And Good Corporate Governance On The Financial Performance Of Sharia Commercial Banks (2017-2021 Period)

This study aim to determin the effect ofintelectual capital and good corporate governanc on the financial performance of Islamic commercial bank. This type of research is a quantitative research with secondary data sources used. This study uses data from the annual financial reports of Islam commercial banks for 2017-2021. The research sample is Islamic Commercial Banks in Indonesia in 2017-2021. The sample was selected using a purposive sampling technique in order to obtain eight Islamic Commercial Banks. Processing techniques and data analysis using Descriptive Statistical Analysis, Multiple Linear Regression Analysis, Classical Assumption Test and Hypothesis Test. The program used for calculations uses SPSS version 25 which then interpres the results from SPSS. The results of the study show that the intellectual capital variable has a significan efect on financial performance. Meanwhile, the variables of institutional ownership andmanagerial ownership have no significant effect the financial performance of Islamic Commercial Bank.

Analisis perbandingan kinerja manajemen dengan menggunakan metode RGEC (risk profile, good corporate governance, earning, capital) pada bank umum BUMN yang terdaftar pada Bursa Efek Indonesia tahun 2022

Banking is a sector that plays an important role in society, especially in economic development. Bank Indonesia as the bank that supervises banks in Indonesia issued PBI No. 13/1/PBI/2011 regarding the Assessment of the Health Level of Commercial Banks using the RGEC method (Risk Profile, Good Corporate Governance, Earning, Capital). This study aims to compare the management performance of state-owned commercial banks using the RGEC method. The research method used in this research is a descriptive method with a qualitative approach and the data used is secondary data obtained from the published financial statements of BUMN commercial banks. The results showed that the NPL, LDR, and GCG ratios of the management performance of BUMN commercial banks were not much different from the criteria of very healthy and healthy. However, the ROA and BOPO ratios show differences in management performance, where there is one bank that is in the fairly healthy criteria and the other three banks are in the healthy criteria. The CAR ratio of all state-owned commercial banks is very healthy.

Analisis Dan Estimasi Kinerja Bank Umum Syariah Sebelum Dan Selama Pandemi Covid-19

This study aims to determine and analyze the influence of macroeconomic and internal financial performance factors of Islamic Commercial Banks on the profitability of Islamic Commercial Banks before and during the COVID-19 pandemic, as well as to be able to estimate the long-term and short-term effects on the financial performance of Islamic Commercial Banks. The data analysis method in this study uses the Error Correction Model (ECM), where the end result is to measure the short-term and long-term influence of the movement of Islamic Commercial Bank profitability as measured by ROA. The data used is secondary data, in the form of time series and the research period is January 2015 - December 2022. The results showed that interest rates (SB), exchange rates (NTR), NPF, CAR and BOPO affect ROA in the long run. While NPF, BOPO and SB have an effect on ROA in the short term. These findings are very important for the Islamic banking industry and the authorities to carry out strategies that must be carried out on the influence of macroeconomics and internal financial performance of Islamic Commercial Banks

The Study of Interest Rate Liberalization and Bank Performance — An Empirical Analysis Based on Listed Banks in Jiangsu Province

In the modern economic system, interest rates are key economic variables that not only reflect the cost of capital but are also closely related to market-oriented reforms, profoundly impacting the entire economy. This study focuses on the effects of interest rate fluctuations on the performance of listed banks, conducting an in-depth analysis of data from nine listed commercial banks in Jiangsu Province from 2012 to 2020. Utilizing qualitative, quantitative, and comparative analysis methods, this research explores the specific impact of interest rate liberalization on bank performance. It was found that interest rate liberalization has a significant negative impact on the overall performance of commercial banks, especially on city commercial banks. Furthermore, the nominal interest spread positively affects the performance of both types of banks, but its reduction has led to a more passive banking operation. In summary, interest rate liberalization has lowered banks’ return on assets and increased operational risks. Currently, commercial banks in Jiangsu Province are still adapting to the challenges of market-oriented reforms.

The Impact of Fluctuations in the Pounds Value on Commercial Banks Activities Based on Mini-budget and Banks Interest Rate Hikes

Since August 2022, the British pound exchange rate has continued to decline due to multiple factors such as the global epidemic and the Russia-Ukraine war. Against the background of the cost of living crisis with high inflation, especially the sharp rise in energy costs, the British government issued a new tax cut, namely the mini-budget, but the implementation effect is very poor; Subsequently, the Bank of England adopted successive interest rate hikes in an attempt to stabilize the value of the pound and temper the general situation of inflation. This paper critically evaluates the impact of the fluctuation of the value of sterling on the activities of commercial banks in the financial market and analyzes the reasons, advantages, and disadvantages. Commercial banks can benefit from sterling volatility in several ways, such as generating higher trading revenues, enhancing asset liquidity, attracting more capital inflows and trading opportunities, and increasing equity market capitalization. On the other hand, a similar sterling appreciation could have multiple negative effects on commercial banking operations, including risk management, net profits, policy interest rates, and international competition. For the development prospects of commercial banks, it is recommended that in the context of the overall global economic downturn, timely adjust their operations and strategies to adapt to these changes, to withstand the business risks related to exchange rate fluctuations, such as changes in interest rates, interest spreads, and capital costs.

A Study on the Impact of Non-Interest Income on Commercial Banks Performance

With an upsurge of interest rate marketisation and internet finance, the role of commercial bank revenue in China's non-interest sector is turning more significant in terms of the bank's operating performance. From 2017 through 2021, the study explores the relationship between non-interest revenue and operating performance in business banks. Simultaneously, the article explores the various degrees of influence of three forms of non-interest revenue on operating performance and compares non-interest income variances on operating performance amongst banks with different equity natures. The empirical data show that non-interest income from commercial banks beneficially effects on their profitability; the proportion of fees and commissions contributes more to the profitability; and the impact on operating performance is more pronounced for state-controlled and joint-stock banks than for urban and agribusiness banks. As a consequence, commercial banks should pursue other businesses aggressively in order to diversify non-interest income sources and play a role in bank operations.

Islamic Corporate Social Responsibility Disclosure, Profitability, and Visibility of Sharia Commercials Bank in Indonesia

The purpose of this study is to analyze the effect of profitability and visibility on Islamic Corporate Social Responsibility Disclosure (ICSRD) of Islamic Commercial Banks in Indonesia for the period 2020 – 2022. This research is a quantitative study using secondary data from the Islamic Commercial Bank's Annual Reports and Sustainability Reports. The effects are examined based on content analysis of 9 Islamic Commercial Banks in Indonesia using a purposive sampling technique. The results showed that profitability and visibility simultaneously had a significant effect on the ICSRD of Islamic Commercial Banks in Indonesia for the period 2020 – 2022. However, partially the profitability did not affect ICSRD. Meanwhile, the visibility has a significant effect on ICSRD partially. The results of this study are expected to provide a reference for Islamic Commercial Banks policymakers to always improve the ICSR to maintain customer confidence in the operations of Islamic Commercial Banks in Indonesia.

A moderated mediation analysis on fintech adoption, social influence, competitiveness and financial performance of commercial banks in Pakistan

Commercial banks in Pakistan have a great potential to improve competitiveness and financial performance through fintech adoption. Therefore, this study aims to assess the impact of fintech adoption on financial performance of commercial banks while emphasizing the moderating role of social influence and mediating role of competitiveness in the banks in Pakistan. A cross-sectional survey was conducted with five largest and most reputed commercial banks in Pakistan. Bank employees, particularly bank managers, were chosen as the respondents. The sample size for the study was 367 bank managers selected randomly from the chosen commercial banks. A standardized and structured questionnaire was used to interview the selected respondents to collect primary data. The partial least square structural equation modelling was employed to analyze the data and process the findings of the study. The analysis revealed that 62% of the respondents were male, and nearly 47% were in the age of 40 years and above. The study found a positive and significant impact of fintech adoption on the financial performance of banks. It was also found that social influence had a significant impact on banks’ competitiveness. Moreover, the findings revealed that competitiveness had a significant mediation impact on the increase in fintech adoption and consequently on the financial performance of banks. AcknowledgmentThe authors are thankful to the respondents (i.e., the employees of the selected banks) to participate in the survey without any financial benefit.

Analysing the influence of accounting conventions on the financial performance of commercial banks in Kenya

The collapse of some commercial banks in Kenya in the recent past has raised the question of the credibility of financial information as a tool for investors to make informed decisions. The study sought to analyse the disclosure practices of accounting conventions on the financial performance of commercial banks in Kenya. The following specific objectives guided the study: to establish the influence of the disclosure, consistency, prudence and materiality of financial reports on the performance of commercial banks in Kenya. A cross-sectional survey was adopted. The target population was 42 respondents who formed the sample size by the census method. The data was collected through questionnaires, secondary data and annual reports and analysed quantitatively and qualitatively. Quantitative data was analysed using descriptive statistics and inferential statistics. The finding shows a moderate positive relationship between disclosure and the performance of commercial banks. The relationship is significant (r = 0.322, p>0.01). The result shows a moderate positive relationship between consistency and performance of commercial banks. The relationship is significant (r = 0.369, p>0.01). The results also show a moderate positive relationship between prudence and the performance of commercial banks at a significance of (r=0.500, p>0.01). On establishing the relationship between materiality and performance of commercial banks, it was found there is a moderate positive relationship with a significance of (r = 0.317, p>0.01). Respondents indicated that the consistency of financial reports has little effect on the net profit of commercial banks. Respondents indicated that prudence of financial reports leads to better organisational performance. The materiality of financial reports affects organisation performance. Prudence in financial reporting affected the decision-making among the investors in the banking industry. The study recommends that commercial banks' management ensure transparency, honesty, consistency and reliability during financial reporting.

The Influence of Enterprise Resource Planning on Firm Value Mediated Financial Performance in State-Owned Commercial Banks

The development of technology and information greatly influences the progress of the business world. Various types of companies have adopted technology to improve company performance so they can compete and maintain business continuity in the future. This research aims to examine the influence of Enterprise Resource Planning (ERP) and financial performance on company value. This research uses a sample of state-owned banks registered on the IDX during the period 2015 to 2022. The sampling technique is purposive sampling by obtaining 4 state-owned banks multiplied by 8 years, namely 32 observation data. The data analysis method in this research is Structural Equation Modeling Partial Least Square (SEM-PLS) method with the help of SmartPLS 4.0 software. The research results show that ERP partially has a positive and significant effect on financial performance (NPM), and company value, and financial performance has a positive and significant effect on company value. Another finding is that financial performance is able to mediate the relationship between Enterprise Resource Planning (ERP) and company value by 0.116% and 11.6%

Bank Characteristics and Financial Performance of Commercial Banks Listed at The Nairobi Securities Exchange in Kenya

Commercial banks in Kenya have recently experienced a steady downturn in their financial performance, mostly as a result of strict regulatory requirements and a changing business environment. The subpar financial performance of numerous lower-tier banks has resulted in significant consequences, including the necessity of placing some of these banks under receivership. The purpose of this study was to look into how various factors influence the financial performance of commercial banks listed on the Nairobi Securities market. In particular, this study looked to see how financial performance was impacted by asset quality and liquidity management. The study employed a descriptive methodology and a target population comprised of 11 commercial banks listed on the NSE were included in the population sample for this study. Secondary data was collected and analyzed using descriptive and inferential statistics. The research exhibited that the financial performance of commercial banks is significantly influenced by quality of their assets. Furthermore, the study revealed a positive and statistically significant impact of liquidity on the financial performance of Kenyan commercial banks The study concluded that financial performance was substantially and positively impacted by the quality of assets and liquidity management practices. Consequently, it is recommended that banks maintain a low level of nonperforming loans, as these loans have adverse effects on bank profitability, which in turn affects overall financial performance. Although the statutory ratio is established at 20%, the central bank might think about increasing this ratio by taking into account the general growth of the banking industry in recent years.

The Impact of Third Party Payment on China's Commercial Banking

The rapid development of social economy and science and technology not only promotes the development of Internet finance, but also has a major impact on people's daily life. While people’s lifestyles are gradually changing, the consumption structure is changing. This led to the emergence of an independent institution with certain strength and credit guarantees, which facilitated the online payment model of transactions between the two parties by connecting to the Internet-third-party payment docking. In the most basic third-party payment model, after purchasing the goods, the buyer transfers to the account provided by the third-party platform for payment operations. That is, the payment is paid to a third party, and the third party notifies the seller of the payment account and requests delivery. After the buyer receives the goods, check the goods and confirm that the goods are correct, then notify the third party to confirm the payment; then the third party transfers the money to the seller's account. Although the development time of third-party payment is not long, even far less than the banking industry, its development speed is extremely rapid, and the scope of development is also expanding. The rapid development of third-party payments and the penetration of business scope overlap with the business operations of commercial banks. This has had an impact on commercial banks, prompting commercial banks to accelerate the pace of reform and strive to adapt to the development requirements of the market.This paper mainly studies the relationship between third-party payment and commercial banks, combining the development status of the two, competitive advantage and competitive disadvantage. Analyze the impact of the rapid development of third-party payment on commercial banks at this stage, and combine the current economic, social and technological development to find corresponding solutions.

The Link between Financial Synergy and Financial Performance of Commercial Banks: A Case of Kenya

Despite the significance of commercial banks in Kenya, their financial performance has been fluctuating over the last decade. The overall trend of financial performance (measured by Return on Equity in year 2018 to year 2022) has been inconsistent and largely erratic, with the lowest ratio recorded being 14.1% in 2018: this improved slightly in year 2019 then rose to 14.9% before dropping to 13.9% in 2020. The highest Return on Equity (at 25.6%) was recorded in the year 2022. Although the banking sector has documented growth in Assets, financial performance (in terms of Profitability) has been declining in the recent past. Empirical evidence linking financial synergy and financial performance of commercial banks documents mixed results on the nature and type of relationships. However, it remains an issue for further empirical investigation as to whether financial synergy has a significant effect on the financial performance of commercial banks in Kenya. Hence, the study sought to assess the relationship between financial synergy and financial performance of commercial banks in Kenya. The theories underpinning the study are: synergistic mergers theory and tax incentive hypothesis theory. The target population comprised 13 commercial banks which had undergone mergers and acquisitions in Kenya over the 11-year time scope (2008-2019). Positivism research philosophy and explanatory research design were adopted. The study was a census of the 13 Commercial banks. Panel data was used-the data was obtained from the audited financial statements, and Central Bank of Kenya supervisory reports. The study finds a positive and significant link between financial synergies and financial performance (P = 0.001). In view of the findings, the study recommends that institutions critically evaluate the overall business and operational compatibility of the merging institutions and focus on capturing long-term financial synergies, as this has a positive effect on financial performance. Keyword: Financial Synergy, Financial Performance, Synergistic Mergers Theory, Tax Incentive Hypothesis Theory, Return on Equity and Leverage Ratio.

Critical success factors of the financial performance of commercial private banks: A study in a developing nation

This study’s objective is to examine the impact of employee innovativeness, readiness to change, employee creativity, and learning capability on the financial performance of private banks in Bangladesh. The study involved 334 bank employees from three prominent private banks in Bangladesh. Those banks were selected with better ratings by the central bank and have several branches across the country. First, branch managers were contacted about this study and collected employee emails from each branch information desk. Then, email invitations were sent to each employee of the selected bank branches. This study involved branch managers, senior officers, officers, and junior bank executives. Past studies also considered senior and junior bank officers as they directly contribute to a bank’s performance. The study utilized a methodical questionnaire to assess the three independent variables: employee innovativeness, readiness to change, and learning capability. The dependent variable in this study was financial performance, which was assessed through key financial indicators such as profitability and sales growth over three years. SPSS was utilized to conduct hypothesis testing by considering 95% confidence interval. Correlation results show that all three independent variables were significantly correlated with the bank’s financial performance. The study’s regression results suggest that bank employees’ readiness to change (β value = 0.393) significantly impacts the bank’s financial performance, followed by employee innovativeness (β value = 0.338). On the other hand, employees’ learning capability (β value = 0.202) has the least significant impact on financial performance. Moreover, three independent variables explain 42.9% variance in bank financial performance.

Motivation and Staff Performance of Commercial Banks in Calabar Metropolis

This research examines the effect of motivation on staff performance of commercial banks in Calabar Metropolis. The study objectives were to establish the effect of employee’s autonomy, growth path, and job benefits on staff performance. A cross sectional survey design was employed. A sample of 150 staff, were selected from population for the study. The data collected through field survey were presented and analyzed using multiple regression technique. Based on the findings it was revealed that, employee autonomy, growth path and job benefits had significant positive effect on staff performance of Commercial banks in Calabar Metropolis. It was concluded that, job performance and quality of service will improve in any organization that motivate its employees because motivation helps people towards achieving goals, gaining positive perspective, creating the power for change, building self-esteem and capability. It therefore recommends that, since staff performance increases when giving a free hand to work or to perform their duties, management of Commercial Banks in Calabar Metropolis should grant bank staff autonomy to improve their efficiency. Also, since growth path is the change that occurs among the staff due to their level of motivation in any establishment, the researcher recommends that, management should reward employees who meet or exceeds target with incentives in order to motivate them to do more as this will increase productivity. And also, job benefits increase staff performance, therefore, the researcher recommend that, appropriate reward should be accorded to staff as this will result in staff effectiveness.

ANALISIS KOMPARASI KINERJA KEUANGAN BANK UMUM KONVENSIONAL DAN BANK UMUM SYARIAH SAAT PANDEMI COVID -19

Global economic growth in 2020 contracted by 3.5% from the previous growth of 2.8% in 2019. This contraction was caused by the Covid pandemic - 19 which is not only a health crisis but also a social and economic crisis. To reduce economic pressure due to the Covid-19 pandemic, governments around the world have issued massive and extraordinary stimuli in the form of fiscal stimulus, monetary stimulus, and relaxation policies in the financial services sector. The Covid-19 pandemic is a challenge for the business world, including Islamic banking and conventional banking in Indonesia. Financial performance is an important measure of whether there is an increase in financial companies or vice versa. The data used in this study is secondary data and uses quantitative methods at the time of the Covid-19 Pandemic. The study's results show that based on the average (mean) result of each ratio, the financial performance of Conventional Commercial Banks based on LDR/FDR, CAR, NOM/NIM, and NPL/NPF is better than Islamic Commercial Banks. Meanwhile, based on the BOPO and ROA ratios, the financial performance of Islamic Commercial Banks is better than Conventional Commercial Banks. Based on the results of the independent sample t-test, it is known that the six ratios have significant differences between the financial performance of Conventional Commercial Banks and Islamic Commercial Banks based on LDR/FDR, NPF/NPL.NOM/NIM, ROA, CAR, and BOPO

The impact of reward system on talented employees’ performance in Vietnamese commercial banks: mediating role of job satisfaction

The impact of reward system on talented employees’ performance in Vietnamese commercial banks: mediating role of job satisfaction