Performance Of Banks In Countries Research Articles

Assessing the Impact of the Covid 19 Pandemic on the Banking System Performance

The outbreak of the Coronavirus, which has caused a global crisis, has affected all aspects of human life. This pandemic has also seriously challenged the business environment, monetary and financial markets, and the performance of banks in countries. Accordingly, this paper aims to answer the question: “What is the impact of the COVID 19 pandemic crisis on the performance of the Canadian banking industry? Thus, the main purpose of the study is to investigate the impact of the Covid-19 pandemic on the performance of the Canadian banking industry. For this purpose, the related literature was systematically reviewed to extract performance indicators. Then, a quantitative approach and a multiple case study strategy were used to examine the hypotheses and answer the questions. So, three Canadian banks including RBC bank, TD bank, and BMO were selected as cases. Document- and records-based method used to collect public data from official, and well-known economic and financial sources. For data analysis, structural equation analysis and correlation test were considered using Amos 28 and APSS 27. Based on the results, although the Covid-19 pandemic has shocked the Canadian banking industry, like many businesses, but because of its high capabilities, they have been able to manage the crisis well and come out of it successfully. The results show that the average profitability and efficiency of Canadian banks decreased slightly during the pandemic period, but it was not significant. In addition, during this period, business risk has increased slightly, but this situation has gradually returned to normal. Plus, some indicators such as the average of ROE, ROI, EPS, etc. after passing the initial shock, they have found a better position than the pre-crisis. Considering the newness of the pandemic and the lack of similar knowledge and experience that has surprised people, the results of this research contribute to the theoretical development of the literature, and its results can be used in the financial, banking, and commercial fields. Since the basis of the investigations was limited to the data of only three banks, therefore, it should be a little cautious in generalizing the results.

Returns to Retail Banking and Payments

The present paper examines the fundamental relationship between the country-level infrastructure of the retail payment market and overall bank performance. Using data from across 27 European markets over the period 2000–07, the results confirm that the performance of banks in countries with more developed retail payment service markets is better. This relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology itself can also improve bank performance, and evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance, although they have a positive influence on the performance of commercial banks as well. Additionally, the findings reveal that the impact of retail services on bank performance is more pronounced through fee income, although their impact through interest income is also positive. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications.

Return from Retail Banking and Payments

The European banking industry joined forces to achieve a fully integrated market for retail payment services in the euro area: The Single Euro Payments Area (SEPA). Against this background, the present paper examines the fundamental relationship between retail payment business and overall bank performance. Using data from across 27 European markets over the period 2000-07, we analyse whether the provisions of retail payment services are reflected in improved bank performance, using accounting ratios and efficiency measures. The results confirm that the performance of banks in countries with more developed retail payment service markets is better. This relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology itself can also improve bank performance, and evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, a higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance although they have a positive influence on the performance of commercial banks. Additionally, findings reveal that impact of retail services on bank performance is dominated by fee income. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications. The results may also be informative for the industry when reconsidering its business models in the light of current financial market developments.

Return to Retail Banking and Payments

The European banking industry joined forces to achieve a fully integrated market for retail payment services in the euro area: the Single Euro Payments Area (SEPA). Against this background, the present paper examines the fundamental relationship between retail payment business and overall bank performance. Using data from across 27 European markets over the period 2000-07, we analyse whether the provisions of retail payment services are reflected in improved bank performance, using accounting ratios and efficiency measures. The results confirm that the performance of banks in countries with more developed retail payment service markets is better. This relationship is stronger in countries with a relatively high adoption of retail payment transaction technologies. Retail payment transaction technology itself can also improve bank performance, and evidence shows that heterogeneity in retail payment instruments is associated with enhanced bank performance. Similarly, a higher usage of electronic retail payment instruments seems to stimulate banking business. We also show that retail payment services have a more significant impact on savings and cooperative bank performance although they have a positive influence on the performance of commercial banks. Additionally, findings reveal that impact of retail services on bank performance is dominated by fee income. Finally, an effective payment service market is found to be associated with higher bank stability. Our findings are robust to different regression specifications. The results may also be informative for the industry when reconsidering its business models in the light of current financial market developments. JEL Classification: G21, G28

Performance of banks in countries of the Gulf Cooperation Council

PurposeThe purpose of this paper is to assess the performance of banks in countries of the Gulf Cooperation Council (GCC).Design/methodology/approachPerformances of 55 banks operating in countries of the GCC are examined in this study using data envelopment analysis (DEA) and Malmquist productivity index (MPI). When DEA is used, the bank(s) that registered the highest efficiency is used as benchmark and the performance of other banks are evaluated relative to this benchmark. Two outputs and four inputs are employed for the performance measurement. MPI is used to analyze the patterns of efficiency change over the period 2000‐2004.FindingsDEA efficiencies are calculated for the year 2004. Results show that only 15 of the 55 banks are rated as efficient under constant returns to scale (CRS) assumption, and all the GCC countries have at least one efficient bank. The analysis using MPI has shown that banks in four of the six GCC countries (Bahrain, Kuwait, Saudi Arabia and the UAE) registered productivity improvements during 2000‐2004. The selected banks in Bahrain have shown the highest productivity improvements during this period, while the selected banks in Qatar have registered the highest reductions in productivity during this period. Interestingly, all the countries seem to have registered reductions in productivity in terms of technology change.Research limitations/implicationsMore banks could not be considered in this study due to non‐availability of consistent data. Since performance of banks in more than one country have been compared, we have used a common unit of monetary measurement.Originality/valueThis study is first to study the performance of banks in the Middle East, with the exception of a study of selected banks in Kuwait.