Banking Practices Research Articles

Determinants Influencing Banking Practices among Municipal Residents

Sustaining financial stability and managing family finances require the application of sound banking practices. Finding the important variables that affect city dwellers’ banking preferences is the main goal of this study. The research was conducted in the Rupandehi District of Nepal, specifically located in the Lumbini Zone within the Western Development Region, specifically within the Tilottama Municipality. A diverse range of individuals, encompassing various age groups, genders, occupations, and educational backgrounds, actively participated in the study by diligently completing comprehensive questionnaire. Using a mix of descriptive and causal research frameworks, the study found that factors like convenience, and security have a positive influence on banking behaviors. Conversely, no meaningful relationship was found between the urban population’s banking practices and awareness, availability and motivational factors. The similarity of bank services and the greater levels of financial awareness and literacy that are common in cities may be the cause of this lack of correlation. Therefore, the results of this study may be helpful to banking institutions in creating and putting into practice plans to boost banking participation.

Implementation of Know Your Customer Principle in Banking Practices at Bank BNI 46 Bima Branch

Artikel ini merupakan penelitian hukum yang menganalisis penerapan prinsip mengenal nasabah (know your customer) dalam praktik perbankan, hal ini sangat penting dilakukan untuk dapat mengidentifikasi transaksi yang mencurigakan sejak dini, dan meminimalkan berbagai risiko, seperti risiko operasional, risiko hukum, risiko transaksi terkonsentrasi, dan risiko reputasi. Metode yang digunakan dalam penelitian ini adalah metode penelitian hukum empiris, dengan mengambil lokus di Bank BNI 46 Cabang Bima. Temuan baru yang ditemukan dari penelitian ini adalah pelanggaran terhadap prinsip kerahasiaan di mana bank diizinkan untuk mengetahui identitas nasabah terkait dengan profil dan karakter transaksi nasabah. Hasil dan pembahasan menunjukkan bahwa Bank BNI 46 Cabang Bima menerapkan Prinsip know your customer. Aturan Know Your Customer sebagaimana tercantum dalam PBI Nomor 3/10/PBI/2001 yang kemudian diubah oleh Bank Indonesia Mengenai Penerapan Prinsip dengan Peraturan Bank Indonesia Nomor 5/21/PBI/2003 Mengenai Perubahan Kedua atas Peraturan Bank Indonesia Nomor 3/10/PBI/2001 tentang Penerapan Prinsip Kenal Nasabah. Dalam menerapkan prinsip mengenal nasabah, bank dapat mencurigai transaksi yang diduga berasal dari hasil kejahatan, seperti penyelundupan uang, suap, tindak pidana korupsi, penyelundupan tenaga kerja, dan kejahatan perbankan. Selain itu, transaksi keuangan yang menyimpang dari profil, karakteristik, atau kebiasaan pola transaksi nasabah perusahaan juga patut dicurigai. Kesimpulannya, prinsip mengenal nasabah (know your customer principle) adalah salah satu prinsip penting dalam dunia perbankan dan keuangan, yang telah diimplementasikan oleh Bank BNI 46 Cabang Bima mengacu pada kebijakan dan prosedur yang diterapkan oleh lembaga keuangan untuk memastikan identitas dan karakteristik nasabah sebelum memberikan layanan keuangan kepada mereka. Namun, hal ini justru bertentangan dengan tradisi kerahasiaan antara bank dan nasabahnya, yang menjadi pilar utama membangun hubungan kepercayaan antara bank dan nasabahnya. This article is a legal research that analyzes the application of the principles get to know customers (know your customer ) in banking practice, this is very important to do to be able to identify transactions early suspicious, and minimize various risks, such as operational risk, legal risk, risk of concentrated transactions, and reputation risk. The method used in this research is an empirical legal research method, by taking the locus at BNI 46 Bima branch. novelty What is found from this research is a violation of the principle of confidentiality where the bank is allowed to know the identity of the customer related to the profile and the character of the Customer's transaction. The results and discussion show that BNI has 46 Bima branches apply Know Your Customer Principles. Know Your Customer Rules as set forth in PBI Number 3/10/PBI/2001 which was later amended by Bank Indonesia Concerning Application of Principles with Bank Indonesia Regulation Number 5/21/PBI/2003 Concerning the Second Amendment to Bank Indonesia Regulation Number 3/10/PBI/ 2001 concerning Application of Know Your Customer Principles . In implementing the principle of knowing your customer, banks can suspect transactions that are suspected of originating from the proceeds of crime, for example money smuggled, bribery, corruption crimes, labor smuggling, banking crimes. In addition, financial transactions that deviate from the profiles, characteristics or habits of the company's customer transaction patterns are also suspect. In conclusion, the principle of knowing your customer (know your customer principle) is one of the important principles in the world of banking and finance, which has been implemented by Bank BNI 46 Bima Branch referring to the policies and procedures implemented by financial institutions to ensure the correct identity and characteristics of their customers before provide financial services to them. However, this is precisely the opposite of the tradition of secrecy between the bank and its customers, which is the main pillar for building a trusting relationship between the bank and its customers.

Monetary policy framework in Sri Lanka and its impact on the financial sector: A review

Monetary policy is a prominent stabilization mechanism often used to accomplish price and economic stability in a country. The success of monetary policy depends on the operating economic environment, the institutional framework adopted, and the choice and mix of the instruments used. The aim of this paper was to review the evolution of the monetary policy framework in Sri Lanka and its impact on the financial sector. The review is important, and monetary policy is intended to impact aggregate spending in the economy to contribute to the goals of full employment, price stability, sustainable economic growth, and balance of payments equilibrium. The paper reviewed more than twenty-five research and review papers using a thematic approach. The paper explains the historical evolution of monetary policy regimes in Sri Lanka and the reasons for adopting various monetary and exchange rate policy regimes from time to time. The review considers national and international studies on monetary policy regimes and their impact on the financial system. The paper concludes that the Currency Board could not influence the money supply in any way, and until the adoption of open economy policies in 1977 under the fixed exchange rate regimes, the Central Bank had no control over domestic inflation. The review also identifies that flexible inflation targeting is the international best practice of Central Banking, and flexible inflation targeting enables the maintenance of low inflation, thereby helping economies achieve a high and stable growth path. However, it emphasizes that it should be maintained sustainably subject to several conditions through government intervention.

Human Resource Development Practices and Employee Engagement in Nepalese Commercial Banks

The level of employee engagement is a significant issue for many organizations globally. As a result, many organizations are using a variety of human resource development practices to enhance employee engagement. The purpose of this study is to focus on analyzing the relationship between HRD practices and employees' engagement in Nepalese commercial banks. The study's independent variables were Career Advancement, Performance Management. Reward and Recognition and Training and Development. The dependent variable is Employee Engagement. The descriptive research design is used. The population of the study was 46408, and a simple random sampling technique was used to pick 384 employees from 11 commercial banks as sample. Data were gathered by using a standardized questionnaire on Likert Scale with 1 specifying a strongly disagree and 5 a strongly agree. Descriptive statistics such as Mean, Correlation and Regression were employed to analyze the data. Chronbach's Alpha was used to test the reliability. Which was 0.65 on an average. SPSS version 26 was used to analyze the data. The study concluded that Career Advancement and Performance Management had a favorable and significant relationship with Employee Engagement, Reward and Recognition and positive but insignificant relationship and Training and Development had a negative but significant relationship with Employee Engagement.

Talent Management Practices and Employee Job Satisfaction in Nepalese Commercial Banks

The primary objective of this study is to investigate the relationship between talent management practices and employee job satisfaction. The study employed a descriptive and analytical research design under the quantitative research method to achieve these objectives. The study targets all employees working in Nepalese commercial banks, including both headquarters and branch locations in Kathmandu, the capital city of Nepal, and a sample of 400 employees was selected. However, only 233 responses were received and used for further analysis. The selection of samples was done using a simple random sampling method. The study assessed the positions of different variables by calculating their mean values. The fitness of regression models was evaluated using F-values, and regression models were employed to examine the relationship between talent management practices and employee job satisfaction. The reliability of the data collection tool was tested using Cronbach's alpha value. Furthermore, regression assumptions were tested, including multicollinearity using tolerance and VIF value, and linearity using ANOVA. The results of the study indicate that talent management is a significant predictor of employee job satisfaction.

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.

Improving Branchless Banking in Berlin Germany: The Effects of Promotional Strategies

Purpose of current study was to evaluate the function and importance of promotional strategies in branchless banking (BB) to capture a sizable portion of untargeted and unaddressed branchless banking volume in Germany. In both emerging and developed countries, commercial banks promote, influence, and integrate economic activities. This study aimed to determine importance of branchless banking in Berlin, Germany, to alleviate pressure on traditional banking practices. BB is used as a dependent variable, whereas promotional strategies such as below the line (BTL) and above the line (ATL) marketing are independent variables. Berlin, Germany, comprises population stratum in this cross-sectional survey. Additionally, snowball sampling technique which is non-probability sampling method was used in this research study. Both independent and dependent variables were analyzed using inferential statistics. Cronbach alpha (CA), average variance extracted AVE, composite reliability (CR), standard deviation (S.D) and exploratory factor analysis (EFA) were used. It was found that BTL marketing campaign and ATL marketing campaign positively related with branchless banking. The findings of the study are generalized to promote branchless banking through below-the-line and above-the-line marketing campaigns.

Customer Satisfaction of Service Quality: Assessing Mobile Banking Practices

This study aims to examine the impact of mobile banking service quality on customer satisfaction. The research seeks to determine whether improvements in service quality lead to higher levels of customer satisfaction. Data for this study were collected through a descriptive research approach, using a structured questionnaire with close-ended questions. The survey was conducted among mobile banking users in Kapilvastu, Nepal. The statistical analysis involved employing the Chi-square test to identify associations between variables and the Mann-Whitney U test to explore the relationship of independent variables with satisfaction categories (i.e., satisfied and unsatisfied). Notably, each relationship between the variables was found to be statistically significant. The findings of this paper demonstrate that in the context of Nepal, customers indeed experience increased satisfaction with mobile banking services. In addition to creating new value for both users and providers, the digital transformation in the banking sector also raises important questions about how practices are transformed in response to these advancements. This study sheds light on the satisfaction levels of customers using mobile banking services in the Nepalese context, highlighting the positive impact of these services on customer satisfaction.

Sustainable banking in Africa: A review of Environmental, Social, and Governance (ESG) integration

Sustainable banking, guided by Environmental, Social, and Governance (ESG) criteria, is gaining prominence as a vital strategy for fostering sustainable development in Africa. This review explores the integration of ESG factors within the African banking sector, highlighting its significance, challenges, and potential benefits. ESG integration in banking involves incorporating environmental considerations such as climate change and resource management, social factors including community development and employee welfare, and governance aspects like ethical practices and transparency into banking operations and decision-making processes. The review begins by examining the current state of the African banking sector, noting the unique economic and regulatory landscapes across the continent. It identifies key challenges in financial inclusion, economic development, and regulatory compliance that underscore the need for sustainable banking practices. The review then delves into the specifics of ESG integration, outlining strategies for environmental sustainability, such as green financing and reducing carbon footprints, social initiatives like corporate social responsibility (CSR) programs and financial literacy initiatives, and governance improvements through robust ethical frameworks and enhanced transparency. Case studies of leading African banks demonstrate successful ESG integration, illustrating the positive impacts on financial performance, reputation, and stakeholder trust. However, the review also acknowledges significant barriers to ESG adoption, including lack of awareness, high implementation costs, and regulatory hurdles. To address these challenges, the review recommends policy support, capacity building, and collaboration with international organizations. This review underscores the critical role of sustainable banking in Africa's development, advocating for a more integrated approach to ESG factors. By aligning banking practices with sustainability goals, African banks can contribute to long-term economic growth, social equity, and environmental protection, ultimately fostering a more resilient and inclusive financial system across the continent. Keywords: Sustainable Banking, Africa, ESG, Review.

Legal and Regulatory Frameworks For Sharī’a Governance Practices in the Islamic Banking Industry of Bangladesh

This paper aims to explore the regulatory arrangements for sharī’a governance practices in the Islamic banking industry of Bangladesh and to identify the issues and challenges faced in this regard. Despite notable advancements, the necessity for a more robust regulatory framework, separate from the modified Banking Companies Act of 1991, which currently integrates Islamic banking regulations, remains apparent. A conspicuous challenge lies in the lack of a dedicated department within Bangladesh Bank responsible for overseeing Islamic banking activities. The article suggests an independent government-supervised Sharī’a board. This study enhances Bangladesh's Islamic banking regulation and promotes an understanding of sharī’a governance. The research is based on the review of existing literature but lacks empirical evidence. It has been stated in previous studies that a survey method can be used to examine real scenarios. This paper discusses the effectiveness of the Islamic Law Rules in the current practices of Islamic banks in Bangladesh, shedding light on their deficiencies.

Determinants of Customers' Behavior for the Adoption of Green Banking Products and Services: UTAUT Model-Based Explanation

Increasing environmental concerns worldwide have spurred individuals and firms to emphasize eco-friendly practices in every walk of life. This study investigates the implication of the UTAUT model in the adoption of green banking products and services by customers in Pakistan. This study also explores behavioral intention as a mediator between explanatory variables and customers' behavior for the adoption of green banking practices. This quantitative study used convenience sampling and structured self-administered questionnaires for data collection. Structural Equation Modelling (SEM) was employed on the data collected from 305 customers of commercial and the results revealed a significant impact of performance expectancy, effort expectancy, enabling situation, conditional values, and emotional values on customers’ intention and behavior toward green banking practices. Moreover, facilitating conditions and social influence positively affect customers’ adoption of green banking products and services. Behavioral intention also fully mediates the link between performance expectancy, conditional values, emotional values, and usage behavior. Thus, bank management should consider these factors when creating green banking products and services. The current study focused on the customer perspective only, undoubtedly, it is very pivotal to understand the behavior of customers about green banking. But for a holistic coverage of the factors influencing the adoption of green banking, future research might focus on varied perspectives including bank management, bank employees, and SBP by using both quantitative and qualitative methods.

AN OVERVIEW OF GREEN BANKING PRACTICES IN UZBEKISTAN

The research draws on existing literature on green banking practices, as well as case studies of banks in Uzbekistan. This approach allowed for a thorough and comprehensive understanding of the topic. The main purpose of this paper is to provide an overview of green banking practices in Uzbekistan, with a focus on mobile banking, online banking, green financing, and guidelines for green banking practices. This paper will also explore the role of green banking in promoting CSR (Corporate Social Responsibility) and will discuss the importance of green banking in Uzbekistan, and the challenges that need to be overcome in order to implement it effectively. The literature review revealed a number of important findings, including the lack of standardized definitions for green banking practices, the challenges faced by banks in implementing these practices, and the benefits that can be gained by doing so. These findings will be further explored in the main body of the paper.

Analisis Instrumen Bank Syariah Terhadap ROA Pada PT Bank BCA Syariah

This study aims to analyze the effect of various Islamic banking instruments on the Return on Asset (ROA) provided by PT Bank BCA Syariah. This study uses historical data for the last five years (2018-2022) and statistical analysis to evaluate the contribution of certain Islamic banking instruments to the amount of financing provided by the Islamic bank. The results of this study provide greater insight into how Islamic banking instruments affect the financing portfolio of PT Bank BCA Syariah and can serve as a foundation for future strategic decision-making in the management of Islamic banking funds and financing. This research is expected to make a positive contribution to the understanding of the development of Islamic banking and sustainable Islamic banking practices.

Determination of Priority Factors for the Development of Green Banking Practices in Turkey with the Fuzzy DEMATEL Method

Determination of Priority Factors for the Development of Green Banking Practices in Turkey with the Fuzzy DEMATEL Method

Intensifying the interrelationships between the bank and the corporation

Subject. This article examines the peculiarities of cooperation between non-financial companies and banks in present-day conditions. Objectives. The article aims to identify areas for improving cooperation between the bank and the firm through enhancing the specialization and competencies of each party to increase their profits and value. Methods. For the study, I used the logical and systems approaches, and analysis and synthesis. Results. The article finds that endogenous factors of non-financial companies and banks make it necessary to identify the cooperation between corporate financial services and credit organizations. One of the areas of close cooperation is the interaction of the corporate financial service and the bank, the improvement of which provides benefits to each party from opportunities building to focus on the core activities. Conclusions and Relevance. The complication of exogenous circumstances forces companies to strengthen their competencies and specialization, which inevitably leads to the need to improve cooperation with organizations specializing in the production of goods and services that are used in the manufacture of finished products, but do not differentiate companies from competitors in the relevant market. The results of the study can be used in the practices of corporations and banks, and when teaching the disciplines of corporate finance and banking in higher educational institutions.

Механизм реализации цифровой ипотеки в практике российских коммерческих банков

Mortgages for banks are not a highly profitable product, but they are a tool that allows you to expand your cus-tomer base to further offer higher-risk and profitable banking products. Therefore, it is important to develop this loan product, strive to make it more convenient for the client, and develop mortgage programs, including gov-ernment programs aimed at supporting the construction sector. The article discusses the theoretical founda-tions of the implementation of digital mortgages in the activities of commercial banks and its regulatory and legal regulation. The analysis of the dynamics of mortgage housing lending in the practice of Russian banks for 2021–2023 is carried out and the role of the introduction of digital technologies into this practice is determined. The mechanism of digital mortgage implementation is revealed. The features and distinguishing features of a digital mortgage compared to a conventional mortgage are also highlighted. The factors hindering the devel-opment of digital mortgages in the Russian banking sector at the present stage were identified, and measures to reduce them are proposed.

Tinjauan Yuridis Pengawasan Perbankan Dan Perlindungan Nasabah Oleh Otoritas Jasa Keuangan (OJK)

The function of a bank is as a financial intermediary institution, namely as a bridge between fund owners and parties who need funds, both as depositors and borrowers. Bank-customer relationships often involve banking practices that have a negative impact on customers, but legal protection is often less than optimal. Because if you look at the relationship between banks and customers, banks have enormous control over banking transactions, and in some cases they control banking transactions. So that sometimes it is detrimental to customers. Based on the above facts, Law Number 21 of 2011 concerning the Financial Services Authority (UU OJK) has been promulgated. As a bank supervisory institution and as an institution that protects customer interests.

Exploring the Influence of Corporate and Shariah Governance on the Profitability of Banks and their Islamic Windows: A Comprehensive Study of Pakistan

The main purpose of our study is to take a look at how it impacts corporate governance and shariah governance on the profitability of conventional banks of Pakistan and their Islamic windows, one more objective of this study is to investigate whether there is any significant difference in the profitability of conventional banks after opening of Islamic windows. Our research study's theoretical basis draws from corporate governance theories, agency theory, resource dependence theory, and Islamic finance principles. By examining the relationships between these independent variables and the dependent variables (ROA and ROE) our study aims to provide insights into the factors influencing the financial performance of Shariah-compliant banks. Our study is based on 10 conventional banks which also provide Islamic windows. For our analysis in the current study, we will use annual data that covers the period from 2013 to 2022. To achieve these objectives we are using a linear regression model and paired sample t-test. Our findings conclude that bank age and board size have a significant positive impact on corporate governance in contrast, board diversity has a significant but negative impact on the ROA of conventional banks on the other hand bank size and board independence do not have any impact on ROA and if we talk about ROE board size and board independence had a helpful important impact on ROE while bank size bank age and board diversity doesn't have any significant impact on ROE of conventional banks of Pakistan. In the case of Shariah governance, only the Shariah board has a significant positive effect on ROA and ROE ratio on the other hand remuneration and charities don’t have any effect on the Islamic windows of conventional banks. We further discover no substantial variation in the ROA & ROE of Pakistani conventional banks following the establishment of Islamic windows. The findings of this study suggest that the government of Pakistan should focus on promoting good corporate governance practices in banks, especially regarding board size, bank age, board diversity, and shariah board because these factors increase the profitability of conventional banks.

Evaluation of Green Banking in Pakistan Using Framework of the Central Bank: Employing TOPSIS Approach

The purpose of current research is to evaluate commercial banks’ performance regarding Green Banking (GB) practices using State Bank of Pakistan’s (SBP) framework as criteria. The study aims to rank and compare commercial banks with respect to their acceptance, adoption and implementation of green guidelines issued by SBP. The research design comprises of systematic review of literature, data extraction and analysis. Literature review consists of overview of GB practices in global banking industry as well as local industry of Pakistan. SBP has issued guidelines and required its commercial banks to transform banking practices towards green practices as a step towards sustainable green economy. The study is cross-sectional; the data collection involves content analysis of annual reports of commercial banks of Pakistan for the year 2021. Out of total forty-one banks, fourteen banks are shortlisted, using purposive sampling method, that have disclosed information about their GB practices in their annual reports. Analysis is performed using Multi-Criteria Decision Making technique (MCDM) of ‘Technique for Order Preference by Similarity to Ideal Solution’ (TOPSIS). As per findings, Habib Bank Ltd. is at the top of bank rankings, Allied Bank is at the second and Soneri Bank is at the third rank in initiating, implementing, disclosing and obtaining positive outcomes out of their green banking initiatives. The study has implications for regulators, policy makers and practitioners. It can fill the gap in literature by adding a discussion on an important topic that is being ignored by previous researchers. The regulatory institution (i.e. SBP) can learn performance of its banks on GB guidelines. The practitioners can evaluate themselves on green practices scale and learn on how to improve their practices to perform better ahead of competitors.

The selection and preparation of red cell components for intrauterine transfusion: A national survey.

The practice regarding the selection and preparation of red blood cells (RBCs) for intrauterine transfusion (IUT) is variable reflecting historical practice and expert opinion rather than evidence-based recommendations. The aim of this survey was to assess Canadian hospital blood bank practice with respect to red cell IUT. A survey was sent to nine hospital laboratories known to perform red cell IUT. Questions regarding component selection, processing, foetal pre-transfusion testing, transfusion administration, documentation and traceability were assessed. The median annual number of IUTs performed in Canada was 109 (interquartile range, 103-118). RBC selection criteria included allogeneic, Cytomegalovirus seronegative, irradiated, fresh units with most sites preferentially providing HbS negative, group O, RhD negative, Kell negative and units lacking the corresponding maternal antibody without extended matching to the maternal phenotype. Red cell processing varied with respect to target haematocrit, use of saline reconstitution (n = 4), use of an automated procedure for red cell concentration (n = 1) and incorporation of a wash step (n = 2). Foetal pre-transfusion testing uniformly included haemoglobin measurement, but additional serologic testing varied. A variety of strategies were used to link the IUT event to the neonate post-delivery, including the creation of a unique foetal blood bank identifier at three sites. This survey reviews current practice and highlights the need for standardized national guidelines regarding the selection and preparation of RBCs for IUT. This study has prompted a re-examination of priorities for RBC selection for IUT and highlighted strategies for transfusion traceability in this unique setting.