Performance Of Banks Research Articles

Acceleration of the Banking Sector and Economic Growth: Effectiveness of Economic Recovery Strategies Post-Covid-19

The banking sector around the world is under great pressure due to the current state of the Covid-19. This study investigates how Covid-19 impacts systemic risk in the banking sector across all types of banking lines affected by Covid-19. This study found that all banking lines experienced a significant increase in systemic risk among the types of banking that were sampled initially. By using spillover policies, it is also possible to identify institutions that are systemically important. The analysis was performed using Panel Data Regression, SVAR, and FEVD on individual bank data and macroeconomic data. The findings proved that government policies to drive the business cycle and MSME actors in the context of overcoming the impact of Covid-19, have not shown their effectiveness. This is indicated by the negative response of economic growth to the policies that have been issued. On the other hand, the performance of banking financial institutions also contributes to national economic growth. This is indicated by the sensitivity of the bank's internal variables in responding to national economic growth. Likewise, with the response to government policies and macroeconomic conditions. Therefore, there is a need for an acceleration policy in handling the current national economic recovery.Originality/Value: This paper focus on systematic risk in banking during COVID-19, use of advanced econometric techniques, evaluation of government policies, integration of bank performance and macroeconomic growth, and its assessment of policy effectiveness, and its implications for future economic recovery efforts.

Impact of Chatbot Service on Bank Performance Based on a Case Study of IBM Corporation

Exploring the impact of chatbot on bank performance helps to identify the potential of this technology to revolutionize the bank's business model and enhance customer experience, while it can improve employee efficiency and provide a scientific basis and guidance for bankers to effectively respond to the increasing competitive market and achieve bank performance growth and sustainable development. This paper delineates the definitions of chatbot and business performance, provides an overview of current research, and examines the influence of chatbots on bank performance. Furthermore, it utilizes IBM's chatbot as a case study to investigate its impact on banking performance, focusing primarily on cost reduction, enhanced customer satisfaction, and improved employee efficiency. At the same time, the banking industry also faces the negative risk impact of chatbot, which mainly includes perceived risk, security threat and moral risk. The paper also concludes with recommendations on the negative risk impacts of smart customer service. This study links chatbot with bank performance to fill the research gap. It also provides an outlook and suggestions for the future development prospects of chatbot in the banking industry.

A Study on the Role of Digital Transformation in Enhancing Bank Performance

This study investigates the role of digital transformation in enhancing the performance of banks, focusing on how technological advancements have reshaped the banking sector. The research explores various dimensions of digital transformation, including the adoption of digital banking platforms, artificial intelligence (AI), blockchain technology, and big data analytics. By analyzing secondary data from financial reports, industry studies, and case studies of banks that have undergone digital transformation, the study aims to assess the impact of these technologies on operational efficiency, customer experience, and financial performance. Key performance indicators such as cost- to-income ratios, transaction processing times, customer satisfaction levels, and risk management effectiveness are evaluated to understand the overall benefits of digital transformation. The findings reveal that digital transformation significantly enhances bank performance by improving operational efficiency, increasing customer engagement, and driving revenue growth. Specifically, the adoption of digital platforms has streamlined processes, reduced costs, and improved the accuracy of transactions. AI and machine learning have enabled more personalized customer service and effective risk management, while blockchain technology has enhanced transaction security and transparency. The research concludes with recommendations for banks to optimize their digital strategies and overcome these challenges, and suggests areas for further research to explore emerging trends and technologies in the banking sector. Keywords: Digital Transformation, Bank Performance, Financial Technology (Fintech) Artificial Intelligence (AI), Financial Performance Metrics, Technology Adoption

Does gender diversity on boards improve bank financial performance in a bank-based financial system? A pre-registered report

This pre-registered report aims to reveal whether board gender diversity enhance bank performance in a bank-based (financial) system. Using publicly listed banks in the period (2010−2021), we plan to measure bank performance and adopt a difference in difference method for the analysis. We focus on whether Japan's Corporate Governance (CG) code strengthens the advisory or monitoring roles of women on board (WOB) in the banking industry. We shed light on the effectiveness of Japan's CG code, which aims to increase the number of female directors. Furthermore, we contribute to the discussion of “Who monitors the monitors?” in a bank-based system.

Decision-Making Framework for Improving Bank Performance in Emerging Markets: The Analysis of AHP-TOPSIS and AHP-GRA Models

Abstract This study utilizes the Analytic Hierarchy Process (AHP) in combination with the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and Grey Relational Analysis (GRA) models to thoroughly assess the performance of banks in China, India, Pakistan, and Thailand. The integrated results offer significant insights into the relative rankings of various banks in each country. In China, Bank of China Ltd (BOC) emerges as the top performer, setting a benchmark for others. Similarly, in India, the State Bank of India is consistently identified as the leading bank. The National Bank of Pakistan stands out as the top performer in Pakistan. In Thailand, despite minor deviations in results, Kasikornbank PCL (KBANK) consistently shows strong performance. The alignment of results between AHP-TOPSIS and AHP-GRA underscores the reliability of both models, providing stakeholders and decision-makers with a comprehensive understanding of bank performance. This enables them to identify benchmarks, leverage strengths, and address areas for improvement within each country’s banking sector.

The Impact of Green Credit on the Profitability of Commercial Banks in a Low-Carbon Context

This paper delves into the concept of green credit and its theoretical underpinnings, contending that it exerts a discernible influence on the profitability of commercial banks. Through empirical investigation employing an individual fixed effect model, it seeks to ascertain the precise impact of green credit on the profitability of such banks. Drawing on panel data encompassing 16 commercial banks in China spanning the period from 2011 to 2020, this study undertakes a thorough analysis to gauge the extent to which green credit affects bank profitability. The findings of this analysis not only contribute to a deeper understanding of the relationship between green credit and bank profitability but also inform potential strategies for enhancing the financial performance of commercial banks in the context of environmental responsibility. By synthesizing these insights with a comprehensive analysis of the prevailing circumstances, the paper concludes by offering recommendations aimed at bolstering the profitability of commercial banks, thereby aligning their operations more closely with sustainable principles and environmental objectives.

Corporate Governance Practices and Bank Performance in Asian Emerging Market Post-Financial Calamity

Corporate Governance Practices and Bank Performance in Asian Emerging Market Post-Financial Calamity

Innovative and Sustainable Performance of Islamic Bank: Comparing the Financial Ratios between Two Different Organizations in Indonesia

The law that requires every UUS to change into a BUS by 2023 is the background for this research. Financial indicators show that UUS performance is better than BUS so, through this research, the authors will compare the financial performance of Islamic Banks which were previously in the form of UUS, and after changing their business entity to BUS. Currently, in Indonesia, there is thirteen BUS that previously had UUS status. The sampling in this investigation used a purposive sampling technique with two criteria so that two samples were obtained, namely Bank BJB Syariah and Bank BNI Syariah. The observation period was carried out for seven years when the status was UUS and eight years after becoming a BUS. The source of data in this study comes from the financial statements of each bank which contain the ratio of PPAP, FDR, NOM, ROA, and BOPO. This comparative study uses the Mann-Whitney U test non-parametric test analysis technique. The comparative study conducted concluded that there were differences in financial performance before and after the spin-off for the FDR and BOPO ratios, while the PPAP, NOM, and ROA ratios were not found to be different.

Effect of Capital Adequacy on Operational Efficiency of Commercial Banks in Kenya

This study investigates the impact of capital adequacy on the operational efficiency of Kenyan banks, highlighting its importance for financial stability and risk management using a two-step analytical approach: first, Stochastic Frontier Analysis was used to determine operational efficiency scores for each bank; second, a panel Generalized Method of Moments (GMM) regression model assessed the relationship between these scores and capital adequacy. The study employed a panel GMM Method, accounting for individual and time-specific effects as well as endogeneity and correlation biases. The study concentrated on data from 2008 to 2022, from verified audited financial statements from the Central Bank of Kenya and the respective banks' websites. The study revealed a positive relationship between capital adequacy and operational efficiency. Specifically, increased capital adequacy was associated with a 10.32% improvement in operational efficiency. The study also found that market structure plays a significant role in this relationship. Based on these findings, policymakers should adopt comprehensive strategies focusing on stringent capital adequacy regulations to enhance bank performance and stability.

Effect of Strategic Human Resource Practices on Employees’ Performance in Commercial Banks in Nairobi (A Case of Nairobi County)

Effect of Strategic Human Resource Practices on Employees’ Performance in Commercial Banks in Nairobi (A Case of Nairobi County)

How employee engagement mediates the training and development and work–life balance towards job performance of the private banks?

How employee engagement mediates the training and development and work–life balance towards job performance of the private banks?

IMPACT OF CREDIT RISK MANAGEMENT ON PROFITABILITY OF COMMERCIAL BANKS: A CASE STUDY IN VIETNAM

The main purpose of this study is to examine the impact of credit risk management on profitability of commercial banks in Vietnam. While the existing literature emphasizes the necessity for a more in-depth study and additional empirical evidence to elucidate intricate relationships between market dynamics and credit risk, particularly in the context of commercial banks in Southeast Asia, there remains a gap in comprehensive studies, with a specific focus on Vietnam. The secondary data was collected from 20 commercial banks from the country for the period of 11 years, from 2012 to 2022. The study used non-performing loans ratio (NPLR), capital adequacy ratio (CAR) as well as loan-loss provision ratio (LLPR) as proxies of credit risk while the financial performance is measured by return on equity (ROE). Moreover, the bank's characteristics, such as its size (SIZE), the macroeconomic inflation rate (INF), and a dummy variable that looks at how ownership type (OWN) affects the bank's profitability are all applied to quantify the independent variables. The model does not exhibit the multicollinearity issue, according to the mean Variance Inflation Factor (VIF) data. The regression results reveal that SIZE, CAR and INF variables have a significant positive effect on ROE, while the NPLR variable has an opposite significant effect on ROE. Nevertheless, there is no connection between the ROE-measured financial performance of commercial banks and the OWN or LLPR variables. This offers further valuable insights to bankers and policy makers in credit risk management of commercial banks in Vietnam to enhance the stability of the Vietnamese banking system.

Economic freedom and its subcomponents: effects on Islamic bank performance

PurposeThis paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.Design/methodology/approachThis study uses a sample of 41 Islamic banks from the Organization of Islamic Cooperation (OIC) Countries selected from 2010–2020. It conducts an empirical approach based on the System Generalized Method of Moments (SGMM).FindingsOverall, economic freedom has a substantial impact on the profitability of Islamic banks. We then investigate the relationship between the subcomponents of economic freedom and the profitability of Islamic banks. The study’s breakdown components suggest that financial and investment freedoms are favorable indicators, while business and monetary freedoms have a negative effect.Practical implicationsThis research can serve as a guideline for Islamic bank management in terms of maintaining performance. The results of this study provide policy implications for the government to offer friendly regulations for economic actors to engage in financial transactions by looking at the economic freedom sub-component.Originality/valueTo the best of the authors' knowledge, the study of the role of economic freedom in Islamic banking performance is limited, particularly in the context of OIC Countries.

Determinants of Credit Risk Management and Their Relationship with the Performance of Commercial Banks in Guangdong China

Determinants of Credit Risk Management and Their Relationship with the Performance of Commercial Banks in Guangdong China

Bank Fraud Mitigation Strategies and Performance of Commercial Banks in Kenya

Bank Fraud Mitigation Strategies and Performance of Commercial Banks in Kenya

Study on the Philanthropic Activities of Chinese Commercial Banks from an Environmental, Social, and Governance (ESG) Perspective

The study aims to investigate the integration of philanthropic responsibility objectives with operational goals within commercial banks, embedding the ethos of financial benevolence into their core business strategies. It seeks to understand how these institutions can capitalize on their inherent advantages and resources to establish distinctive identities in the realm of philanthropy. By examining the 2022 ESG reports of China's six state-owned commercial banks, twelve joint-stock banks, and six city commercial banks, the research delineates the performance of commercial banks in philanthropic projects and expenditures, the development of philanthropic financial products, and the provision of philanthropic services. The analysis reveals three key deficiencies in the current philanthropic practices of commercial banks: the absence of a robust performance accounting mechanism for philanthropic projects and expenditures, the challenge of ensuring the long-term continuity of philanthropic financial products, and the relatively small scale of charitable trusts. The study offers four strategic recommendations for commercial banks: to institute an effective performance accounting mechanism for philanthropic initiatives, to innovate and scale up philanthropic financial products, to enhance the promotion of these products, and to broaden the scope of charitable trust projects. These suggestions are intended to facilitate a more holistic advancement of "charity plus finance" initiatives by commercial banks, thereby enhancing their engagement and impact in the ESG sphere.

Operational Risk Control Strategies and Employee Performance of Commercial Banks in Cameroon

This study investigates the extent to which operational risk control strategies influence employee performance of commercial banks in Cameroon. Primary data was obtained by administering close-ended questionnaires to respondents of 14 selected commercial banks in Cameroon. Data analysis was based on descriptive statistics and Ordinary Least Squares regression. Results showed that amongst the operational risk control strategies under consideration, risk retention and risk avoidance significantly influence the employee performance of commercial banks in Cameroon whereas risk transfer and risk reduction showed no significant influence on the employee performance. Therefore, commercial banks in Cameroon should place more emphasis on internal control, auditing programs, provision for operational loss as well as putting in place codes of conduct, enhancing technology and screening of employees in order to increase employee performance.

A Comparative Study On Financial Performance Of Sbi In The Pre And Post Merger Periods Using Camels Rating Model

The core objective of the study aims to compare the performance of State Bank of India through CAMELS model during the pre and post merger periods with five of its associates. The study period covers 2012 to 2022. Data from secondary sources were used in this study. The comparison is made on the basis of the parameters like capital adequacy, asset quality, management quality, earning quality, liquidity and sensitivity to market risk. Data is analysed by using Paired sample t-test and also CAMELS ratings in the present study. The outcomes of the study reveals that SBI’s financial competency is improving post merger periods. But attention is required in liquidity quality in terms of total loans to total deposits (L1). Liquidity quality in terms of circulating assets to total assets (L2) and sensitivity to market are excellent in CAMELS ranking. Out of six parameters in CAMELS, management quality and liquidity quality in terms of total loans to total deposits (L1) are found to be significant in the post merger period. The study concluded that post-merger SBI's earnings quality is improved but liquidity did not. So management should be meticulous with managing liquid assets.

The Mismatch Between Macroeconomic Stability and Declining Stock Performance of Digital Banks in Indonesia: An Empirical Study of 2022-2023

This study examines the mismatch between macroeconomic stability and the stock performance of digital banks in Indonesia over the period 2022-2023. The results of the analysis show that the USD/IDR exchange rate and Bank Indonesia interest rate have a significant negative effect on stock prices, while inflation shows no significant effect. These findings suggest that despite stable macroeconomic conditions, the share prices of digital banks experienced a significant decline, indicating market inefficiencies. This study makes a theoretical contribution by revealing the role of exchange rate and interest rate fluctuations in influencing the stock performance of digital banks in emerging markets. In conclusion, factors such as investor sentiment, market behavior, and the influence of digital financial technology need to be taken into account in developing strategies to support the stability and growth of the digital banking sector in Indonesia. The results of this study are important for policymakers, regulators, and market participants in dealing with the challenges faced by the digital banking sector in Indonesia. Keywords Digital banking, macroeconomic stability, stock performance, market inefficiency.

A Study of Corporate Social Responsibility Activities of Bank Towards Society and Its Impact on Bank Reputation

Regarding their CSR initiatives, banks differ in their perspectives and justifications. A portion of them think that bank performance will be impacted by CSR efforts toward the community. Therefore, the purpose of this study topic is to gain an understanding of the bank's CSR initiatives toward society and how they affect the bank's reputation. This study's goal is to examine a bank's CSR initiatives and how they affect performance in southern Tamilnadu.