Performance Of Commercial Banks Research Articles

Examination of Specific Factors of the Form Affecting Profitability of Commercial Banks: A Case from Nepal

This study investigates the determinants of operational performance in Nepalese commercial banks, with a particular focus on the roles of capital adequacy, cost-to-income ratio, and various performance indicators. The study underscores the pivotal role of maintaining an optimal level of capital adequacy and cost-to-income ratio in shaping the profitability of commercial banks.Bank size, nonperforming loans ratio, liquidity position, cost-to-income ratio, capital adequacy, and assets quality all exhibit a positive impact on overall bank performance. Prudent management of capital adequacy and cost-to-income ratio emerges as key factors influencing profitability. Analysis with one-year lagged variables reaffirms the significance of liquidity ratio, capital adequacy, and increased capital ratio in enhancing bank performance, particularly in terms of return on assets. An improved assets quality also contributes to overall bank performance. Effective liquidity management is crucial, emphasizing considerations of liquidity ratio, capital-to-assets ratio, investment-to-asset ratio, and quick ratio. Commercial banks are advised to operate within a threshold level of capital ratio, avoiding excessively high levels that may negatively impact profitability. The study recommends investing in well-trained manpower to enhance operational efficiency and customer service. In the broader economic context, the study highlights the vital role of banks in contributing to the country's development. It calls for strong supervision, monitoring, and the implementation of a one-window service in lending and investment activities. Commercial banks are encouraged to demonstrate their potential contribution to the national economy by ensuring a satisfactory rate of return on investment, efficient mobilization of savings, and strategic competitiveness

Interest Rate Capping and Performance of Commercial Banks in Bangkok, Thailand

Interest Rate Capping and Performance of Commercial Banks in Bangkok, Thailand

Problems of intensification of bank lending to the real sector of the economy in the conditions of martial law

Introduction. The difficult conditions of the economic situation in Ukraine during the period of martial law directly affected the activities of the banking system in terms of credit provision for the production and consumer needs of all market subjects, although problematic moments in the field of bank lending did not arise with the start of full-scale war, but accumulated over a quite long period time. Under such circumstances, the study of the main problems arising in the field of bank lending to the real sector should be considered particularly relevant, so that the functioning of banks in the conditions of martial law is stable and maximally provides the needs of the national economy in terms of credit resources.Purpose. The purpose of the study is to find out the main trends and problems of the organization of bank lending to the economy in the conditions of martial law and, on this basis, determine possible directions for optimizing the credit relations of banks with clients for the effective redistribution of monetary resources in favor of the real sector and contributing to the stabilization of the economic situation in the country.Methods. The methods of the system approach and generalization of data are used to assess trends and regularities in the organization of credit relations. In addition, general scientific and empirical techniques and tools of economic science, methods of analysis and synthesis, comparison, summary and grouping were used.Results. The main trends in the functioning of commercial banks on the credit market and the specific of the formation of the structure of bank assets are studied. Factors affecting the credit activity of the banking system under martial law are systematized. The actions of the National Bank to stimulate the work of the banking sector in lending to the economy are analyzed. The main directions of economic policy, which are necessary as a set of measures for the activation of bank lending to the real sector, are substantiated.Prospects. It is advisable to focus further scientific research on the assessment of the macroeconomic conditions for the effective functioning of the credit mechanism, in particular regarding ensuring the stable value of the national currency, preventing crisis phenomena in the banking system, and reliable legal protection of the interests of banks as creditors.

Monetary Policy Implementation and Financial Performance of Commercial Bank in Rwanda: A Case of Equity Bank, Rwanda

Monetary Policy Implementation and Financial Performance of Commercial Bank in Rwanda: A Case of Equity Bank, Rwanda

Influence of Technological Innovations on Financial Performance of Commercial Banks in Central Equatoria State, South Sudan.

The researcher aim was to ascertain what exactly affects the financial performance of Commercial banks in Central Equatorial State, South Sudan, a case of KCB South Sudan, African National bank, Ecobank-South Sudan, CFC Stanbic Bank-South Sudan, Ethiopian Commercial Bank-South Sudan and Ivory Bank branches in Juba. There are numerous elements that affect performance, this study focused on technological innovations that are thought to drive financial performance. The study was divided into three main common areas that have recently caught the attention of the banking industry namely internet banking, agency banking and mobile banking that affect the financial performance of KCB South Sudan, African Nation bank, Ecobank-South Sudan, CFC Stanbic Bank-South Sudan and Ethiopian Commercial Bank-South Sudan in Central Equatorial State. Central Equatoria State has been chosen since it hosts Juba as the capital City and an epicenter of numerous commercial activities. The study’s specific objectives were to determine the influence of agency banking, mobile banking, Automated Teller Machines and debit and credit cards on financial performance of commercial banks in Central Equatorial State. The study employed a descriptive research design. The study targeted population of 294 respondents. The sample size was 169 staff of KCB South Sudan, African Nation bank, Ecobank-South Sudan, CFC Stanbic Bank-South Sudan, Commercial Bank of Ethiopia-South Sudan and Ivory Bank spread across the branches in Juba, Central Equatoria State. Respondents were selected using purposive random sampling. Structured questionnaires were used to collect primary data from respondents while secondary data was obtained from the annual financial reports from KCB South Sudan, African Nation bank, Ecobank-South Sudan, CFC Stanbic Bank-South Sudan, Commercial Bank of Ethiopia-South Sudan and Ivory Bank of South Sudan. Measures of central tendencies were used to describe the results and data was presented using graphs charts and tables. The influence of dependent and independent variable was depicted by use of multiple regression. The study found that agency banking significantly influences performance of commercial banks in Central Equatoria State, South Sudan (β= 0.889; p=0.000). The study revealed that mobile banking significantly influences performance of commercial banks in Central Equatoria State, South Sudan (β= 0.613; p=0.000). The study established that automated teller machines significantly influences performance of commercial banks in Central Equatoria State, South Sudan (β= 0.744; p=0.000). The study found that debit and credit cards significantly influences performance of commercial banks in Central Equatoria State, South Sudan (β= 0.640; p=0.000). The study concluded agency banking, mobile banking, automated teller machines and debit and credit cards significantly influences financial performance of commercial banks in Central Equatorial State, South Sudan. The study recommended that commercial banks in South Sudan should ensure that bank agent’s guarantees security of data and information that is operated on the agency banking platform. The study recommends that commercial banks in South Sudan should work with regulatory authorities to establish a clear and comprehensive regulatory framework for agency banking including guidelines on risk management, customer protection, and agent licensing. The study also recommends that commercial banks in South Sudan should implement stringent security protocols and fraud prevention mechanisms for ATMs. 

DETERMINATION OF THE FIRM’S PERFORMANCE THROUGH ISLAMIC CORPORATE GOVERNANCE, ISLAMIC INTELLECTUAL CAPITAL AND COMPANY SIZE: CASE STUDIES ON INDONESIAN ISLAMIC BANKS (2018–2021)

This study provides empirical evidence of the influence of Islamic corporate governance, Islamic intellectual capital, and company size on the firm’s performance of Islamic banks. The quantitative cause-and-effect method is used as the research method. This study involved 12 Islamic commercial banks listed on the Indonesian Stock Exchange (IDX). The study sample consisted of 8 banks that met the requirements for conducting the study using the purposive sampling method. The results of the study show that Islamic corporate governance, Islamic intellectual capital, and company size have a positive and significant impact on the performance of Islamic commercial banks.

Asset Quality and the Financial Performance of Commercial Banks in South Sudan

Banks are of great and noteworthy importance in preserving and promoting the advancement of diverse economic sectors, making them crucial components of the economy. They shift the resources' attention from areas with surpluses to those with deficits. However, majority of nations have encountered banking issues that have necessitated significant banking system reforms. The issues are primarily the result of domestic factors including poor banking supervision, ineffective management, and insufficient capital. Making sure companies participating in the sector are managed prudently is a crucial aspect of bank regulation. The primary aim of this study was to determine the effect of asset quality 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. There were 29 commercial banks that 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 was conducted. The inferential statistics used were correlation and regression. Descriptive outcomes showed that the mean asset quality ratio from 2017 to 2021 for the commercial banks in South Sudan was 0.262, with the least asset quality ratio being 0.622 and the most being 4.395. Trend outcomes were clear that asset quality was inconsistent amongst South Sudan commercial banks. Outcomes were clear that asset quality negatively but significantly impacted by the performance. The study concluded that asset quality had a negative and noteworthy impression on financial success. As a result, the report advises banks to refrain from holding too many loans relative to their overall assets, as this reduces liquidity and negatively impacts the bank's ability to operate. The study suggests that banks implement appropriate credit risk management procedures. This is because inadequate credit risk management procedures lead to a large percentage of nonperforming loans, which eventually have a negative impact on commercial banks' profitability.

The Effect of Operational Strategy on Organizational Performance of Commercial Banks in Meru County, Kenya

Achieving optimal organizational performance is a concern for businesses, and it largely hinges on how well they adapt to the dynamic business landscape. Currently, this landscape is marked by significant turbulence in organizational performance, particularly posing challenges for managers in the banking sector. Furthermore, there has been a noticeable decline in the growth rate of most commercial banks in Meru City County, Kenya, leading to diminishing profit margins. Consequently, the implementation of functional level strategies has become crucial for banks aiming to achieve objectives such as customer retention, profit growth, increased sales, operational efficiency, and expanded market share. This research study primarily aimed to investigate how operational strategy impact the organizational performance of commercial banks in Meru County, Kenya. To conduct this research, a theoretical framework, resource-based view was used. The study utilized a descriptive research design, and a census approach was employed, targeting 19 branch managers, 19 operational managers, 19 marketing managers, 19 chief accounting officers, and 19 human resource managers in Meru County. A total of 95 respondents were selected for the sample, and data were collected using questionnaires with close-ended questions. Content validity was established through consultations and discussions with experts, academicians, and the supervisor. Reliability was assessed using the Cronbach Alpha method, and data analysis was conducted through the utilization of both descriptive and inferential statistical techniques, facilitated by the Statistical Package for Social Sciences software. The presentation of data took the form of frequency distribution tables and graphical charts. The consensus among respondents was that operational strategies exerted an influence on the organizational performance of commercial banks. Based on these findings, the study recommends enhancing operational strategies as they have a positive impact on the organizational performance of commercial banks in Meru County, Kenya.

Specific banking management in the Republic of Moldova

The banking system has always represented a fundamental element of the national economy. The management of a financial institution, such as a commercial bank, requires special efforts aimed at developing complex strategies, based on the application of the management tools and procedures of this field of activity, subject to specific risks. The importance of effective bank management is explained on the one hand by the fact that these financial and lending institutions are primarily economic agents, whose main objective is profitability. From another point of view, the performance of commercial banks' activity represents a basic

Một số luận bàn về xây dựng tiêu chuẩn các vị trí lãnh đạo, quản lý và chuyên môn trọng tâm tại các ngân hàng thương mại ở Việt Nam

Human resources play a particularly important role in shaping the strategies, building plans, and action programs of a business in general, as well as of a specific commercial bank. This is a key factor that determines the success of an organization, especially in the context of digital technology and the strong development of the 4.0 revolution, which is constantly changing as it is today. Through a comprehensive document review and analysis, the authors have summarized the experiences of several countries and surveyed 15 commercial banks in Vietnam to propose the establishment of standards for leadership positions, management, and key expertise in commercial banks in Vietnam. The research results contribute to improving the effectiveness of human resource utilization in the operations of commercial banks in Vietnam.

Measuring the Performance of Islamic Banking in Indonesia with Maqashid Sharia Index: Pre-Merger and Post-Merger Period

This study examines the performance of Islamic Commercial Banks in Indonesia in the pre and post-merger periods based on the combination of the Maqashid Syariah Index of Ibnu Ashur and Abu Zahrah. With three main indicators, namely tahdzib al fard (individual education), iqamah al adl ( justice), and maslahah (welfare). A comparative quantitative method using simple additive weighting (SAW) to measure the weight and performance rating of Islamic banking was used in this study. The results of the study indicated that the Islamic performance of Islamic Commercial Banks in Indonesia was below average. However, the merger has a positive impact on improving the performance of Islamic Commercial Banks in Indonesia in the post-merger period.
 Keywords: Islamic performance, Maqashid Sharia Index, merger

Analysis of Strategic Response on Employee Performance Among NSE Listed Commercial Banks

Globally, the banking business has seen growing rivalry, necessitating the application of important consistent and skilful decisions to boost the survival rate of numerous institutions. The recent failure of some commercial banks demonstrates that strategic responses for boosting employee performance have yet to be implemented. Employee productivity in Kenya's banking sector has also declined significantly over the years. Employees are also stressed, which leads to decreased productivity, increased absenteeism, low levels of engagement, and low retention rates. The main objective of the study was to determine the influence of strategic response on employee performance among NSE listed Commercial Banks in Kenya. The study was guided by the following specific objectives; to establish the effects of market expansion, cost-cutting strategies and strategic leadership on employee performance among NSE listed Commercial Banks in Kenya. The study also investigated the moderating effect of technology adoption on the relationship between strategic response and employee performance among NSE listed Commercial Banks in Kenya. The study followed a descriptive research design approach focusing on commercial banks based in Nairobi. The target population was all the 10 NSE listed commercial banks and the study data was collected using questionnaires for a period of one month. Due to the population being small, the study used a census sampling approach to cover all 10 commercial banks in Kenya. The study used both primary data. Primary data was collected using semi-structured questionnaires containing both open ended and close ended questions. The content analysis method was used to analyse qualitative data. Quantitative data, on the other hand, was analysed using both descriptive and inferential statistics in SPSS in accordance with the research objectives. Correlation and regression analysis were used in inferential statistics to determine the relationship between the research variables. The findings were presented using tables and figures. From the analysis, it was evident that human resource practices such as recruitment of agencies to help in marketing and selling was mostly adopted. The regression analysis confirmed that strategic leadership and cost-cutting strategies are important factors affecting employee performance in the firms and that market expansion strategies may not have a significant impact on employee performance. The study found that technological strategies may not have a significant moderating effect on the relationship between strategic response and employee performance among NSE listed Commercial Banks in Kenya. The study concluded that there is a positive correlation between strategic response and employees’ performance among NSE-listed Kenyan commercial banks. The study also concludes that strategic leadership and cost-cutting strategies are significant factors affecting employee performance in among the firms. Market expansion strategies and technological strategies may not have a significant impact on employee performance in NSE-listed Kenyan commercial banks. The study further recommended that NSE-listed commercial banks in Kenya should focus on fostering a positive work environment and effective leadership to enhance employee performance. The recommended the NSE listed Kenyan Commercial Banks to continue emphasizing and investing in expansion and cost cutting practices. The study suggested that providing leadership training and support to managers and executives can help them become more strategic in their decision-making. Banks should also carefully evaluate their cost-cutting initiatives to ensure that they do not compromise employee morale, job satisfaction, or overall performance Regular evaluation of technological strategies can help identify areas for improvement and potential opportunities to leverage technology for better employee performance.

Effect of Liquidity Shock on Financial Performance of Listed Commercial Banks in Nairobi Securities Exchange, Kenya

A strong banking system is essential to the stability and expansion of the economy. However, all banks face significant risks in the unpredictably volatile environment of today, encompassing credit risk, interest rate risk, operational risk, liquidity Shock, market risk, and foreign exchange risk. Liquidity Shock is one of many risks that commercial banks that are listed in the Nairobi Securities Exchange (NSE) are subjected to. This risk can have a significant effect on the financial performance of these banks. As such, the purpose of the study was to analyze the effect of liquidity Shock on financial performance of commercial banks listed in Nairobi Securities Exchange. An independent variable, liquidity shock contribute to this risk. This study concentrated on commercial banks which are listed in the Nairobi Securities Exchange market (NSE, 2022); and utilized data from 2013-2022. The study was anchored on liquidity shock theory, A quantitative research design was used for the study. The study adopted a Census, which included all the 11 commercial banks listed in the NSE for the period 2013 to 2022 due to availability of data. Secondary data was collected from the reported financial statements of respective commercial banks for the period 2013 to 2022. Obtaining published financial statements from each of the listed commercial banks on the NSE over a ten-year period – yearly is part of the data collection process. In order to analyze the relationship between liquidity Shock and financial performance of commercial banks with NSE listings, the data was subjected to panel regression analysis. To statistically describe the data, measures of central tendency, dispersion, and position was used. To determine whether the data adhered to the conventional least square assumptions, diagnostic tests were utilized. 

Impact of Asset Quality Compliance on Financial Performance of Nairobi Securities Exchange Listed Commercial Banks

Asset quality compliance is relatively important; however, the banking sector has undergone major financial shocks due to compliance signals. With losses experienced among commercial banks, for instance, return on assets (ROA) dropped consistently from 29% to 24% in 2019 to 21% in 2020, hence the wrong signals. The decline in the number of assets and low deposits further magnified the challenge; this led to the closure of a number of banks, such as Chase Bank and Charterhouse Bank. Furthermore, a national bank was acquired by Kenya Commercial Bank due to inefficient assets. The purpose of the study was to establish the influence of asset quality compliance requirements on the financial performance of commercial banks listed on the Nairobi Securities Exchange and hence determine the null hypothesis that asset quality compliance requirements have no significant effect on the financial performance of commercial banks listed on the Nairobi Securities Exchange. A mixed research design was applied to a population of 12 commercial banks listed at Nairobi Securities Exchange Kenya. This is comprised of causal research designs and longitudinal designs. The study employed a mixed research design and collected secondary data for a period of 5 years. The study found that asset quality requirements had a significance level of P<0.05, thus P = 0.0268, implying significance. The study concluded that assets have a significant impact on banks financial performance. The study recommends that commercial bank stakeholders should invest in assets since they lead to financial performance. The study may benefit a number of people, including bank management, the government, and future scholars.

The effect of mergers and acquisitions on the financial performance of commercial banks in Nepal

Mergers and acquisitions (M&As) have become one of the most significant tools for consolidating banks and financial institutions (BFIs) in Nepal, which has slowed the exponential growth of banks and financial institutions since the central bank of Nepal imposed a new mandatory capital requirement. This research paper examines the consolidation and restructuring effects in Nepal’s banking sector, predominately through M&As. This study answers a key question related to the M&A effect on the financial performance of commercial banks using a set of 13 financial ratios. The study used a sample of seven commercial banks that were involved in M&A transactions between 2013 and 2020, and their significant differences in financial ratios were measured by comparing financial performance data from the three years before and after the M&A using a paired t-test statistic. The financial performance of commercial banks improved significantly after the M&A, as measured by liquidity and leverage ratios. However, the ratios of profitability and shareholder wealth show either no change or a marginal change after the M&A. This finding contributed to existing research gaps in the financial performance of the banking sector before and after the M&A in the Nepalese context and has significant policy implications for commercial banks, shareholders, government, and regulatory bodies to enforce M&A policies, review their existing M&A laws, and M&A deals between banks and financial institutions to take synergy benefits in the long term.

Effect of Employee Relations Practices on Employee Performance in Commercial Banks in Narok County, Kenya

Employee performance is a critical factor for the success of commercial banks in Kenya. Commercial banks in Kenya have been facing various employee-related issues that have affected their performance, productivity and turnover. According to a survey conducted by the Central Bank of Kenya in 2019, the average staff turnover rate in commercial banks in Kenya was 14.6%. This has been attributed to various factors, such as inadequate compensation, lack of career growth opportunities, and poor working conditions. The general objective of the study was to establish the effect of employee relations practices on employee performance in commercial banks in Narok County, Kenya. The study was anchored on the Appraisal theory, Reinforcement theory and expectancy theory. The study adopted a descriptive research design. The target population was 336 managers and middle-level workers in 14 commercial banks in Narok County, Kenya. The study adopted Slovins' formula to get a sample of 182 employees. The study further adopted stratified random sampling to get the sample of each category of worker. The study collected primary data using a questionnaire. Content validity was ensured by the opinions of experts and supervisors. The reliability of the study instruments was determined by conducting a pilot test in Narok County, whereby 18 questionnaires were issued to employees in 2 banks. An internal consistency technique was adopted by utilization of Cronbach's Alpha. Data gathered in the study was both quantitative and qualitative in nature. Descriptive and inferential statistics were employed in the study. Descriptive statistics involves the use of percentages, frequencies, and mean and standard deviation. Inferential statistics involves the use of correlation and multiple analyses. After analysis, data were presented in the form of tables. The study concluded that there is a strong positive correlation between employee relations practices and employee performance in commercial banks in Narok County, Kenya. From the findings, the study recommended that commercial banks in Narok County should encourage a two-way flow of communication where employees feel comfortable sharing their ideas, concerns, and feedback with management. Moreover, commercial banks in Narok County should support employees in achieving a healthy work-life balance to prevent burnout and increase job satisfaction.

The Impact of Financial Innovation on the Performance - Evidence from the Iraqi Banking System

The aim of this study is to investigate the impact of MMO, ATMs, POS and POC on the financial performance of banks. This study supports Silber's theory of constraint-induced financial innovation. Using data for the period from 2018 to 2022 due to the availability of data and the recent use of innovation tools in Iraq, this study examines the causal impact of innovation on the performance of commercial banks. 6 sample banks make up the study community. Secondary data was collected during the study period from the annual reports of the Iraq Stock Exchange and statistical bulletins of the Central Bank of Iraq (2021). Based on the analysis of the multiple linear regression model, MMO has the greatest impact on the performance of banks (4.195) due to the large volume and value of transactions that the banking sector goes through. Thus, more mobile and electronic banking services should be provided. The use of ATMs, internet banking and proxy banking has a significant positive impact in the short and long term on the bank's performance in Iraq, with the exception of POC and POS according to experimental results.

Influence of Working Capital Management on Performance of Commercial Banks in Trans-Nzoia County, Kenya

Effective financial management plays an important role in ensuring the financial health of a company and directly affects its profitability. Its primary objective is to consolidate the company's assets and meet current financial obligations to optimize future operating expenses. This particular study focuses on Kenya and aims to examine the role of monetary policy in monetary policy conditions across Trans Nzoia County. The specific objectives of this study were to examine the impact of financial planning on commercial banking activities in the county and to assess the impact of management accounting on banking activities under Nazism. This study draws on entrepreneurship theory and agency theory by using a descriptive research model to analyze real-world relational situations. These researchers collected data through questionnaires using census methods and selected a sample of 115 people using simple random sampling. The content validity of the questionnaire was determined by the researcher. Regression analyses were conducted to examine the relationship between dependent variables and working capital management. Based on these findings, the study concludes that effective working capital management has a positive impact on the performance of commercial in Trans Nzoia County. In particular, financial planning, invoice management, and inventory management are expected to contribute effectively to the performance of commercial banks in the region. Recommendations from this study include the adoption of a centralized billing system that enables relationship managers to provide better recommendation services by analyzing customer behavior in depth. In addition, this study suggests that bank managers should invest in state-of-the-art information management software that provides real-time analytics. The survey analysis was based on a response rate of 82.6% and the survey instrument demonstrated acceptable reliability. Demographic data showed that the majority of study participants were male, aged 26 to 30 years and older, usually married, with more than three years of banking experience, higher education and in a bank early in their career. The study, conducted in one of Kenya’s 47 counties, acknowledges these shortcomings. Therefore, the researchers recommend a comprehensive study taking into account other factors affecting bank performance. Furthermore, the study showed that the observed variables explain only 46.1% of the factors affecting banking activities in the entire Trans Nzoia County. This suggests that further research is needed to include other variables. In summary, this study highlights the importance of sound financial management for the success of commercial banks in the region and provides an important basis for research in a broader context.

Effect of Mergers and Acquisition Strategies on Financial Performance of Commercial Banks in Kenya

Effect of Mergers and Acquisition Strategies on Financial Performance of Commercial Banks in Kenya

The Impact of the COVID-19 Pandemic on the Financial Performance of Commercial Banks

This study aims to investigate the impact of the COVID-19 pandemic on the financial performance of commercial banks through a comparative analysis. The research model adopts a qualitative approach to delve into the nuanced factors affecting bank performance during the pandemic. Purposive sampling is employed to select participants from the commercial banking sector. Data analysis involves thematic coding and comparative analysis. Findings reveal insights into the resilience and adaptability of commercial banks amidst the pandemic, shedding light on key indicators such as capital asset ratio, return on assets, operational costs, and liquidity ratios. The study contributes to understanding how commercial banks navigate financial challenges during crises, providing valuable insights for stakeholders and policymakers.