Performance Of Commercial Banks Research Articles

The Impact Of Working Capital Management On The Profitability Of Listed Banks: The Ghanaian Economy Experience

The study examined the impact of working capital management practices on the profitability of banks listed on the Ghana Stock Exchange from 2012 to 2022. The study had three specific objectives to determine the relationship between cash conversion cycle and profitability; to determine the relationship between acid ratio and profitability of banks, and to determine the relationship between loan to deposit ratio and profitability of banks. The study was quantitative in nature and used secondary data (audited financial records of banks listed on the Ghana Stock Exchange from 2012 to 2022) of five banks. The data were retrieved purposively. Stata (StataCorp, Texas, USA) was used to analyze the data. The linear regression model was used to analyze the data after Pearson correlation was done. The study found a negative significant association between cash conversion cycle and return on capital employed after controlling for bank size, leverage and debt. This was consistent with study’s hypothesis. This implies that effective cash management is key to commercial banks performance. Also, acid ratio was positive and significantly associated with profitability of banks. Again, the profitability of commercial banks is accounted for by loan to deposit ratio. The study concludes that the profitability of banks is significantly associated with working capital management. That is, when working capital is well managed, commercial banks are better able to meet their short-term commitments as and when they fall due. This enables the commercial banks to operate efficiently without any interruptions. It is recommended that finance managers of commercial banks list on the Ghana Stock Exchange pay external attention to the cash position of their banks at all times.

Corporate Governance and Performance of Commercial Banks in Nepal

The purpose of this study was to examine the effect of corporate governance on performance of commercial banks in. It also examined the corporate governance practices of commercial banks. The study followed quantitative approach and descriptive research design. Multiple regression analysis was used to explore the causal relationship between corporate governance and financial performance of commercial banks. The study revealed a positive relationship of number of board meeting and foreign ownership and bank performance which shows higher the board meeting, foreign investment higher would be the bank performance. However, there was negative relationship of board size and capital adequacy ratio with bank performance indicating higher the board size, capital adequacy ratio would lead lower bank performance. Practices of corporate governance system of financial sector in Nepal is still infant stage however joint venture banks practices are more harmonizing rather than government banks and other banks.

Capital Adequacy and its Influence on Bank Profitability in Nepal

Background: Capital is a fundamental component for any organization's existence and operation. It serves as the lifeblood for initiating and sustaining businesses, regardless of their scale. The purpose of the research is to evaluate the financial performance of Nepalese commercial banks' capital adequacy ratios. Considering the performance of Nepalese commercial banks, it explicitly investigates the impact of capital adequacy ratio, cost income ratio, debt to equity ratio, equity capital to assets, bank size, and liquid ratio.Methods: This study investigates the impact of capital adequacy on the profitability of commercial banks in Nepal, utilizing secondary data from all commercial banks spanning 2013 to 2022. Analyzing 20 commercial banks, the research reveals that Nepalese commercial banks, on average, generate a respectable profit with typical return variance. The Capital Adequacy Ratio (CAR) consistently surpasses the 10% regulatory threshold, ensuring compliance with Basel III requirements and NRB directives. Results: The Average Assets Ratio (AAR) signifies a proactive approach to lending, contributing to enhanced profitability, while the Government Securities to Total Investment Ratio (G-STIR) indicates risk-averse practices with investments in risk-free assets. The Non-Performing Loans Ratio (NPLR) reflects the challenge of balancing low returns and high risk associated with non-performing loans. Correlation coefficients reveal complex relationships, indicating that increased capital, debt, and non-performing loans may lead to reduced profitability for Nepalese commercial banks. Regression analysis reinforces these findings, highlighting significantly negative correlations between Return on Assets (ROA), Return on Equity (ROE), and spread with capital adequacy determinants, and a positively insignificant relationship between government securities, total investment, and profitability metrics. Conclusions: The study explored capital adequacy determinants (CAR, D-ER, AAR, G-STIR, NPLR) and their impact on bank profitability in Nepal. CAR had no significant effect on ROA, exhibiting a negative correlation. Conversely, D-ER and Advances-to-Assets Ratio positively influenced ROA. G-STIR showed a positive relationship without significance, while NPLR had a significantly negative impact. Non-risk-weighted measures, particularly debt-equity, negatively affected profitability. The study highlighted the limited impact, suggesting a more nuanced capital management approach, emphasizing D-ER and Advances-to-Assets Ratio. Consideration of macroeconomic factors and a balanced capital structure are crucial for commercial banks in Nepal.

Pre and Post–Merger Financial Performance Analysis of Commercial Banks in Nepal

Purpose: This study attempts to examine the effect of merger on the financial performance of Nepalese commercial banks.
 Methodology: This paper employs a descriptive and causal comparative research design to examine the financial performance of commercial banks involved in six merger deals as of mid-July 2022, with a sample of four merger deals completed before mid-July 2018. Mean, standard deviation, paired sample t-test, Pearson correlation, regression analysis, and the VIF test, are utilized for data analysis. Financial performance is evaluated using nine key ratios (EPS, NWPS, P/E ratio, CD ratio, CAR, NPL ratio, ROA, ROE, and NPM). Secondary data covering six years (2010 to 2019), excluding the specific merging year, are analyzed.
 Findings: The analysis of pre- and post-merger financial performance in the sample commercial banks revealed statistically significant differences in EPS, NWPS, ROA, and NPM. Positive correlations were observed between the pre- and post-merger periods for EPS, NWPS, CD ratio, CAR, NPL ratio, ROA, ROE, and NPM, excluding the P/E ratio. The merger proved beneficial for Nepalese commercial banks, leading to improved profitability in terms of EPS, ROA, and NPM in the post-merger phase. However, factors like CD ratio, CAR, and NPL ratio, regulated by the NRB, showed no significant changes post-merger. Although banks experienced increased P/E ratio and ROE, the impact was deemed insignificant. Notably, CAR had the most significant impact on both pre- and post-merger ROA.
 Implication: The results derived from the study are relevant to managers for future merger decisions and can be used for the selection of a suitable partner for future merger activities.
 Value: It contributes to a better understanding of the overall merger scenario in Nepalese banking sector, as well as the relationship between certain restrictions and merger.

Exploring the Impact of Loan Loss Provision on Profitability: An Analysis of Commercial Banks in Nepal

Background: The central bank closely examines the loan loss provision maintained by Nepalese commercial banks in order to minimize potential losses resulting from a rise in non-performing loans, which reduces bank capital and squeezes the profitability and sustainability of banks. Establishing the relationship between loan loss provision and profitability is crucial in assessing the financial performance and risk management effectiveness of commercial banks. This analysis enables banks to minimize loan loss provisions, reinforcing profitability and ensuring long-term sustainability through the implementation of appropriate credit policies. Objectives: This research aims to analyses the influence of loan loss provision on the profitability of commercial banks in Nepal. The study also takes into account pertinent variables: non-performing assets, loans and advances to total deposits, and capital adequacy which may affect the relationship. Methods: This study has used both the descriptive and causal-comparative study approaches. The study used a panel data set consisting of 105-year observations, spanning from fiscal year 2017/18 to 2021/22, including 21 presently active commercial banks.The return on assets (ROA) is the dependent variable and loan loss provision (LLP) is an independent variable. The Fixed Effect (FE) panel regression has been chosen as an appropriate model as suggested by the Haussmann test. Results: A panel regression model has found a negative and substantial connection between the provisions for loan losses with the Nepalese commercial banks’ profitability. Conclusion: The study concluded that the increased provision for loan losses adversely affects the profitability of commercial banks in Nepal. Therefore, commercial banks should carefully evaluate their loan portfolios, carry out thorough credit risk assessments, and adopt sensible policies to maximize profit and ensure financial stability.

Bank Performance: Do Political, Legal and Regulatory Institutional Reforms Matter?

This study sought to ascertain if political, legal, and regulatory factors influence the performance of Tanzania's publicly traded commercial banks. A quantitative data was obtained from three major commercial banks notably CRDB, NMB, and NBC with a sample size of 120 employees of the commercial banks. The result from multiple regressions shows that political and regulatory reforms improved commercial banks' operational performance. However, legal reforms had a significant negative impact on commercial bank operational performance. The study therefore recommends that commercial banks be politically flexible and adaptable to changing political regimes. Fiscal and monetary policies must be flexible. The central bank and ministry of finance and planning should regularly review regulations because they affect commercial bank performance, the research suggests. Legal reforms should be fair to commercial banks and their customers to avoid harming commercial bank performance.

تأثير مسؤوليات مجلس الإدارة على جودة المعلومات المحاسبية (The Effect of the Responsibilities of the Board of Directors, on the Quality of Accounting Information)

Based on the world's crises over the last two decades, international bodies have sought to establish rules that govern commercial banks' standards of control and supervision. Although the banking sector is the backbone of economic life, governance has evolved over the last decade to include more transparency in management and regulate the relationship between the company's parties. Furthermore, to achieve a high level of quality in these reports, more trust should be placed in the information in these companies' financial reports. The problem statement addresses the effect of applying corporate governance standards of the responsibilities of the board of directors on the performance of Libyan commercial banks. The study aims to determine the effect of this standard's implementation on the quality of accounting information in Libyan commercial banks. In order to achieve the study's objectives, the questionnaire was used to collect data and assess the impact of applying standards of the responsibilities of the board of directors of corporate governance on the quality of accounting information. The Organization for Economic Cooperation and Development criterion was used as an independent variable, standards of the responsibilities of the board of directors, to measure it on the dependent variable (the quality of accounting information in banks). The study sample included several members of the board of directors, non-auditors, internal auditors, accountants and heads of departments in some branches of Libyan commercial banks. The descriptive approach was used in the analysis using the SPSS program. The study concluded that this governance standard positively impacts Libyan commercial banks' accounting information quality. However, this result was strong in the responsibilities of the board of directors on the quality of accounting information, in contrast to this study's standards and to previous studies. Comparing earlier research, it was found that the environment in which Libyan banks operate is different from that of these studies because Libyan banks confront a variety of hazards, including those related to the environment, the economy, politics, and security. The study also recommended that: the Central Bank should verify the banks' implementation of the Governance Guide issued by the Central Bank of Libya. Banks must have a guide to corporate governance principles and a committee responsible for ensuring compliance with the practice of these principles.

Pengaruh Corporate Governance Terhadap Profitabilitas Bank Umum Syariah Indonesia Periode 2018-2021

Corporate governance is a important key to improve the performance of Islamic commercial banks. This research aims to determine the influence of corporate governance as measured by the board of director, shariah supervisor board, board of commissioner on the profitability in Indonesia Shariah Commercial Bank from 2018-2021. Uses a panel data approach with multiple linier regression analysis where the sample is collected from 7 Indonesia Shariah Commercial Banks with 112 of total data in quarterly. The result of this study found that Shariah Supervisor Board has a negative significate effect and Commissioner Board has a positive significant effect on profitability. Meanwhile board of director has no significant effect on profitability shariah commercial banks. Furthermore, these findings shall be consideration for managers in making policies.

The Effect of Efficiency, Capital Adequacy and Liquidity on the Financial Performance of Commercial Banks in Indonesia with Foreign Share Ownership as Moderator

This study aims to determine the effect of efficiency (BOPO), capital adequacy (CAR), and liquidity (LDR) on the financial performance of commercial banks with foreign share ownership as a moderator variable. This research was conducted on commercial banks included in the KBMI 3 and KBMI 4 categories with the research period 2017 -2022. The sampling technique used in this research is saturated sample with a total sample of 13 commercial banks. The results of this study indicate that efficiency (BOPO) has a significant negative effect on financial performance while capital adequacy, liquidity has no effect on financial performance. Furthermore, foreign share ownership is able to moderate the effect of capital adequacy on financial performance but has not been able to moderate the effect of independent variables efficiency and liquidity on the financial performance of KBMI 3 and KBMI 4 category banks.

Impact of financial technology on Algerian bank performance

Purpose. The aim of this study is to determine the impact of financial technology on the performance of banks in Algeria. Results. We found that the expansion of the scope of application of financial technology allows banks to gain a prominent position in the banking market, reduce costs, manage risks, predict crises, achieve customer satisfaction, promote and diversify services, which positively affects the development of financial and commercial performance of commercial banks in Algeria. Through the applied study, the authors reached the following results: (1) rejection of the first hypothesis, which states that there is no significant impact of credit card balances on the rate of return on assets; (2) accept the second hypothesis that there is no significant impact of the value of technological assets on the rate of return on assets; (3) rejection of the third hypothesis, which states that there is no significant impact of credit card balances on the rate of return on equity; (4) accept the fourth hypothesis, which states that there is no significant impact of the value of technological assets on the rate of return on equity. In light of the findings, the authors recommend the following: (1) the need to pay attention to financial technology because of its positive impact on the banking sector, perhaps the most important of which is improving the quality of financial services provided to customers in terms of speed and cost; (2) the need for banks to pay attention to financial innovations because of their importance and impact on their financial and competitive position; (3) the need for banks to cooperate with startups in the field of financial technology in order to benefit from these companies in developing their various banking services; (4) the need to improve the ICT infrastructure; (5) the need to develop effective models to reduce the risks associated with financial technology innovations; (6) the need to conduct awareness campaigns for customers about the importance of financial technology and its benefits; (7) the need to spread the culture of using financial technology among customers, especially in light of the Covid-19 crisis. Scientific novelty. The study identified the factors that influenced the change in the performance of banks in Algeria during the popularization of the use of financial technology: credit cards, return on assets, return on equity, technological assets, growth rate, inflation rate and value at risk. The authors proposed two sets of measures (short-term and long-term) that would promote the use of fintech in order to positively impact the performance of banks in Algeria. Practical value. The practical significance of this study lies in its potential as a valuable resource and tool to promote the use of financial technology as a powerful catalyst to improve and promote the bank performance, particularly in the area of credit card proliferation and the exploration of financial innovations.

КОММЕРЦИЯЛЫҚ БАНКТЕРДІҢ НЕСИЕ ОПЕРАЦИЯЛАРЫН ЕСЕПКЕ АЛУ ЖҮЙЕСІН ЖЕТІЛДІРУ

Мақалада кредиттік операциялардың экономикалық мәні, оларды тиімді ұйымдастырудың теориялық аспектілері және банк қызметінің басты элементі және ұлттық экономиканың дамуы мен өрлеуінің маңызды факторы болып табылатын қазақстандық банктердің кредиттік қызметінің ерекшеліктері анықталды. Бұл мақалада Қазақстанның қаржы нарығының неғұрлым дамыған сегменті ретінде банктік несиелеудің отандық нарығын дамытудың заманауи тенденциялары қарастырылған. Мақалада коммерциялық банктердің қаржылық жағдайының тұрақтылығын нығайтуға және кредиттеу операцияларының тиімділігін арттыруға бағытталған Коммерциялық банктердегі кредиттеу операцияларын ұйымдастыру мен бухгалтерлік есепті жетілдіру жөніндегі теориялық-әдістемелік ережелер мен ұсыныстар талданады. Бұл мақалада ұйымдағы несиелер мен қарыздардың бухгалтерлік есебі қарастырылады. Мақалад ұйымның жеделдігі мен біртұтастығымен сипатталатын банктік қызметтегі бухгалтерлік есеп ерекшеліктері қарастырылады. Сонымен қатар мақалада тізбеге сәйкес кредиттік операциялардың есебін ұйымдастыру атап өтілген (коммерциялық банк шоттарының жұмыс жоспарында). Автор Қазақстанның коммерциялық банктеріндегі кредиттік қатынастарды басқару және бухгалтерлік есеп жүйесін дамытудың теориялық-әдіснамалық аспектілеріне терең талдау жүргізді. Авторлар сондай-ақ нарық талаптарына сәйкес банктердің қызметін реттеудің жаңа тетіктерін көрсетеді; жеке банктің де, жалпы ҚР қаржы нарығының жай-күйінің де қаржылық көрсеткіштерін жақсарту үшін екінші деңгейдегі банктердегі кредиттік операциялардың есебі бойынша ғылыми негізделген қорытындылар ұсынылған. Халықаралық қаржылық есептілік стандарттары бойынша жұмыс жағдайында коммерциялық банктердің кредиттік операциялары ұсынылды. The article reveals the economic essence of credit operations, theoretical aspects of their effective organization and features of credit activity of Kazakhstani banks, which are a key element of banking activity and an important factor in the development and growth of the national economy. This article examines the current trends in the development of the domestic bank lending market as the most developed segment of the financial market of Kazakhstan. This article examines the current trends in the development of the domestic bank lending market as the most developed segment of the financial market of Kazakhstan. The article analyzes theoretical and methodological provisions and recommendations for improving the organization and accounting of credit transactions in commercial banks, aimed at strengthening the stability of the financial position of commercial banks and improving the efficiency of lending operations. This article discusses the accounting of loans and borrowings in an organization. The article discusses the features of accounting in banking, characterized by the efficiency and cohesion of the organization. The article also notes the organization of accounting for credit transactions in accordance with the list (in terms of commercial bank accounts). The author has carried out an in-depth analysis of theoretical and methodological aspects of the development of the accounting system and credit management in commercial banks of Kazakhstan. The authors also point to new mechanisms for regulating the activities of banks in accordance with market requirements; to improve the financial performance of both an individual bank and the state of the financial market of the Republic of Kazakhstan as a whole, scientifically sound conclusions on accounting for credit transactions in second-tier banks are presented. The prospects for the development of credit operations of commercial banks in the conditions of work according to international financial reporting standards are presented.

Corporate Strategies and Financial Performance among Foreign Commercial Banks in Bujumbura, Burundi

This study investigated the relationship between corporate strategies and financial performance among foreign commercial banks in Burundi. The study used cross-sectional descriptive research design using a quantitative approach. The target population was 219 employees including technical staff and management. A sample size of 142 respondents was determined and simple random sampling was used to select the respondents. The questionnaire was used as the main data collection instrument and data was analyzed using linear and multiple regression analysis. The study revealed that corporate strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.281, p=0.000). In addition, it was found that competitive strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.147, p=0.000). Similarly, the study revealed that operational strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.229, p=0.000). The study concluded that corporate strategies significantly affect financial performance. The study made the following recommendations: management of foreign commercial banks should employ the use of a total quality management system, should make use of a customer relationship management system, should employ advanced and constant methods of market research, and continuously develop new processes of delivering quality services to their customers.

Commercial banks listed on the Ho Chi Minh City stock exchange: An analysis of diversification, human capital, and performance

Both portfolio diversification and the resource-based view theories advocate for firms to engage in the diversification of their activities to mitigate risks and enhance operational efficiency. Nevertheless, the subject at hand is a matter of contention due to the existence of a perspective that advocates for the superiority of specialization over diversification. The objective of this study is to determine the relationship between income diversification, human capital, and the financial performance of Vietnamese commercial banks. Based on an analysis of data obtained from 15 commercial banks listed on the Ho Chi Minh Stock Exchange from 2013 to 2022. Panel data regression method is used. The results indicate that diversification does not exert a significant influence on the performance of banks. However, it is seen that human capital positively impacts bank performance, suggesting a favorable relationship between human capital and bank performance. According to this result, income diversification has not had an impact on the efficiency of Vietnamese commercial banks. On the contrary, human capital is a factor that positively and strongly affects the performance of Vietnamese commercial banks. The findings of this study indicate that some management implications may be considered to enhance the operational efficiency of Vietnamese commercial banks.

Effect of Liquidity and Credit Risk on Bank Financial Performance: A Case of Afghanistan’s Commercial Banks

Aim: The aim of this study was to examine the impacts of liquidity risk and credit risk on financial performance of commercial banks in Afghanistan.
 Methods: Panel data from six commercial banks was collected from their official website for the period 2010 – 2014. The data was analyzed by Gretel software using Ordinary Least Square (OLS) model. Dependent variable (financial performance) was measured by return on assets (ROA) while independent variables liquidity and credit risks were measured by current and leverage ratios respectively.
 Results: It was found that liquidity risk and credit risk have negative impact on financial performance of selected commercial banks in Afghanistan. The impact of credit risk on financial performance was less than the impact of the liquidity risk on financial performance. The correlation between return on asset and leverage ratio was weak (23 percent) and the correlation of current ratio with leverage ratio and return on asset is as low as minus 6 percent and minus 37 percent respectively.
 Conclusion: This study detected the negative relationship between commercial banks’ financial performance and liquidity and credit risks. So there is a negative significant impact of liquidity and credit risks on selected commercial banks’ financial performance in Afghanistan
 Recommendations: The Study recommend that CBs in Afghanistan should not unnecessarily keep cash amount in idle form because it decrease return in asset. Cash is a valuable asset which should be invested for fruitful investment results. In addition, CBs should not refrain from advancing loans since it has minor effects on return on asset and reduces unfavorable liquidity.

ANALISIS PERBANDINGAN KINERJA KEUANGAN BANK UMUM SYARIAH DENGAN METODE ISLAMICITY PERFORMANCE INDEX DAN MARKET VALUE ADDED

This study aims to analyze the comparison of the financial performance of Islamic Commercial Banks using the Islamicity Performance Index (IPI) and Market Value Added (MVA) methods. The study period covers the years 2018-2021. This research employs a quantitative method with a descriptive approach. The study population includes all Islamic Commercial Banks registered with the Financial Services Authority (OJK) during 2018-2021. The sampling technique used is purposive sampling, resulting in three Islamic Commercial Banks listed on the Indonesia Stock Exchange. The data analysis method involves descriptive analysis and using the Cartesian Diagram of IPI and MVA to determine the position of the Islamic Commercial Banks. The results of this study show that there are four quadrants in the Cartesian diagram, but only two quadrants are occupied by Islamic Commercial Banks. Firstly, Quadrant I, or the Upper Left Quadrant (ULQ), is occupied by Bank Tabungan Pensiunan Negara Syariah (BTPNS) and Bank Syariah Indonesia (BSI), indicating that these two banks have high Market Value Added (MVA) but low Islamicity Performance Index (IPI). Secondly, Quadrant IV, or the Lower Right Quadrant (LRQ), is occupied by Bank Panin Dubai Syariah, indicating that this bank has a high Islamicity Performance Index (IPI) but a low Market Value Added (MVA). Meanwhile, no banks occupy Quadrant II or the Lower Left Quadrant (LLQ) and Quadrant III or the Upper Right Quadrant (URQ), indicating that no banks have both low IPI and MVA or both high IPI and MVA.

The Effect Of Inflation, BI-7 Days Repo Rate, Credit Risk, and Liquidity Risk On The Financial Performance Of Conventional Commercial Banks With The 2017-2021

This study aims to determine the effect of inflation, the BI-7 Days Repo Rate, Credit Risk, and Liquidity Risk on the Financial Performance of Conventional Commercial Banks with the 2017-2021 research period. Research objects using 39 conventional commercial banks listed on the Indonesia Stock Exchange using a purposive sampling method. Hypothesis testing using descriptive statistics with multiple linear regression analysis methods. The results indicate that Inflation has a positive effect on financial performance. The BI-7 Day Repo Rate has no effect on financial performance. Credit risk has a negative influence on financial performance. Liquidity risk has no effect on financial performance.

From Corporate Board to Balance Sheet: Board Characteristics and Financial Performance of Commercial Banks in Nepal

This study aims to examine the impact of board characteristics on the financial performance of commercial banks in Nepal. The study utilized census sampling of all commercial banks having shares listed and actively traded in the secondary market, NEPSE. Descriptive and inferential tools were employed including multiple linear regression models to analyze the impact of board characteristics on financial performance based on the longitudinal data of 21 commercial banks collected from the secondary sources over the period of ten years from 2013 to 2022. The study shows that strictly followed mandatory requirements regarding board size, board independence, and board committees after the enforcement of BAFIA in 2017 along with a relatively small representation of women and independent directors in the boardroom during the study period. The findings show a statistically significant negative impact of board diversity and board committees along with an insignificant impact of board size and board independence on ROA and ROE. The findings of the study also indicate that a higher proportion of women directors and a large number of board committees in the board have contributed negatively to the financial performance of commercial banks in Nepal. However, the comprehensive outcome of this research challenges the agency theory and points towards the presence of tokenism in the inclusion of women and independent directors. The results of the descriptive analysis assimilate to the agency and stakeholder theory respectively by ROE and ROA. The findings of this study have practical implications for banking regulators, legislators, and banks in policy formulation relating to board characteristics.

The Effect of Cash Dividend Pay-out Policy on Stock Price Performance: A Case Study of Commercial Banks Listed in Dar es Salaam Stock Exchange

This study investigates the effect of the cash dividend pay-out policy on the stock price performance of commercial banks listed on the Dar es Salaam Stock Exchange (DSE) in Tanzania. The study was conducted in the United Republic of Tanzania, focusing specifically on commercial banks listed in DSE. The study population comprised eight financial reports of commercial banks listed in DSE from which a sample of five commercial banks were purposively selected. These financial reports served as secondary data sources for evaluating the effect of dividend pay-out policy on the stock price performance of the chosen banks during the period spanning from 2016 to 2022. Employing a correlation research design, this study adopted a quantitative research approach, and data analysis involved a combination of descriptive and inferential statistical techniques, supported by statistical software STATA. The panel data regression models of Fixed Effect and Random Effect were employed to analyse the panel data. The results of Hausman test were used to select the best model, where Random Effect model were found appropriate. Findings reveal that the cash dividend pay-out ratio has moderate and positive relationship with stock price performance. Likewise, Cash dividend pay-out ratio is statistically significant at 5% significance level in influencing the stock price performance at equal magnitude. This implies that the dividend pay-out ratio has significant effect on stock price performance, the fact which concurs with signalling theory. The increase in dividend pay-out is associated to increase in stock price performance and the decreasing dividend payments weakens stock price performance. The study recommends Tanzanian banks adopt a balanced dividend approach, considering financial stability and shareholder expectations. Future research should explore long-term dividend trends and decision-making processes with longitudinal and qualitative methods.

The Influence of Islamicity Performance Index and Liquidity Through Intellectual Capital on the Financial Performance of Islamic Commercial Bank

The Influence of Islamicity Performance Index and Liquidity Through Intellectual Capital on the Financial Performance of Islamic Commercial Bank

Effect of Cash Storage on the Financial Performance of Commercial Banks in Kenya

Purpose: The study sought to establish the effect of cash storage and on financial performance of commercial banks of Kenya.
 Methodology: The research was carried out through a descriptive survey research design. Descriptive design was used because it focused on complex analysis to bring out the correlation of variables. The study population was all the 43 commercial banks registered and licensed to operate in Kenya. These commercial banks formed the unit of analysis. A census was conducted on all the banks. The sampling frame of the survey of the banks was one head of operations and head of finance from each of the 43 commercial banks located in Nairobi County. The target respondents was hence 86. The study used both primary and secondary data for analysis. Inferential analysis techniques including correlation, regression and t-tests were used to achieve the study objectives. SPSS version 21 was used for analysis.
 Findings: The study findings indicated that the correlation between, cash storage and financial performance is positive. Further results indicated cash storage had a positive significant effect on cash storage and ROA is positive and significant.
 Unique Contribution to Theory, Practice and Policy: The study was anchored on cash management theory to evaluate the effect of cash storage on the financial performance of Commercial Banks in Kenya. The study recommends that commercial banks and other financial institutions involved in handling of cash should put in place proper reconciliation practices for instance increasing the frequency of reconciling books. The study also recommends that advanced practices of cash storage for instance investing in fire proof safes for storing cash and also in closed circuit television security cameras for surveillance of cash storage areas and also invest in alarm system in cash storage areas and also restricted access to cash storage areas by lock, key, passwords and other security measures so as to reduce fraud arising as a result of poor cash storage practices.