Private Commercial Banks Research Articles

Exploring the Correlation among Employee Performance, Motivation, and Social Life Satisfaction: A Study on Private Commercial Banks in Bangladesh

As a key component of economic growth, commercial banks play a pivotal role in the development of trade and industry in a country. At present, 61 scheduled banks are operating in Bangladesh of which 43 are private commercial banks. The performance of these banks’ employees plays a vital role in the economic sustainability and growth of the country. This study focuses on these employees’ performance in the light of their motivation and social life satisfaction. The data were collected from 204 respondents from the three renowned private commercial banks (Islami Bank Bangladesh Limited, Dutch-Bangla Bank Limited, and Jamuna Bank Limited) through a structured questionnaire. A 5-Point Likert Scale was used to collect primary data and Statistical Package for the Social Science (SPSS) software was used to analyze it. The study revealed that there is a significant positive correlation between employee performance and motivation as well as social life satisfaction. Furthermore, social life satisfaction has the highest positive contribution to performance. Finally, some actionable recommendations were outlined based on the findings of the study.

Transparency of Financial Reporting According to the S&P500 Indices and its Implications for Accounting Information Risks - Evidence from the Iraq Stock Exchange

The current research aims to test and analyze the relationship between the level of transparency of financial reporting and the risks of accounting information for a sample of private commercial banks in the Iraq Stock Exchange. The transparency of financial reporting was assessed using the S&P500 indices, and the level of accounting information risk was evaluated using the S&P500 indices, representing fragmented and reduced risks. Unanswered information within the S&P500 indices' requirements consists of 98 conditions. To achieve the research objectives and test its hypotheses, the applied approach was used to evaluate the research variables in a sample of commercial banks listed on the Iraq Stock Exchange, which amounted to (10) selected banks for the period (2016-2021). In comparison, the inferential statistical method was used to test and analyze the research hypotheses using Excel and SPSS26 programs. The research reached a set of conclusions, the most important of which was the low level of transparency in private commercial banks, especially in the two main categories of (S&P500) indicators: ownership structure and shareholder rights, and the board of directors and management procedures, as both had the largest share of risks, which indicates a high risk of accounting information. The research concluded with several recommendations, the most important of which was working to oblige banks to expand disclosure and work with the mechanisms of S & P500 indicators and apply them annually to follow up on the level of transparency development in them to reduce the risks of accounting information.

Banking sector performance evaluation in Ethiopia for the period of growth and transformation plan (GTP-II): private vs public commercial banks

The main objective of this study was to evaluate and compare the financial performance of commercial banks in Ethiopia during the implementation of growth and transformation plan II. Moreover, determinants of financial performance were examined. The study was conducted using secondary data obtained from the National Bank of Ethiopia, and the official website of each commercial bank. Multiple panel regression and independent sample t tests were used to show the relationship and to compare the financial performance of commercial banks between the study periods. The ratio of non-interest expenses to total expense, log_net profit per employee, interest income to total income, and exchange rate were variables with a positive and significant effect on the financial performance of commercial banks, while log_total loans per branch and inflation affected negatively the financial performance measured by return on assets. Whereas, the ratio of debt to equity, log_net profit per employee, total liquid assets to total deposits, interest income to total income, and exchange rate have a positive and significant impact, while the ratio of loan loss provision to total loan, log_total loans per branch, and inflation negatively and significantly affected financial performance measured by ROE. The independent sample t test shows that except for the ratio of total loans to total deposits and total capital to total assets, the remaining variables did not show significant differences between state and publicly owned banks.

EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT TOWARDS EMPLOYEES’ PERFORMANCE IN PRIVATE BANKS OF BANGLADESH

HRM is “a management function involving procurement of suitable human resources train and develops their competencies. The study of human resource management practices has been an important and critical area in management and organizational performance from last several years especially in the banking industry. The study highlights the fact that private banks i.e Dutch Bangla Bank Ltd., United Commercial Bank Ltd., Dhaka Bank Ltd., and One Bank Limited leading private commercial banks of Bogura and Sirajganj District in Bangladesh is better can be the facilities and benefits provided to the employees. The study helps to the policy makers researches and bankers etc. Further it would be also using the formulation of bank policies related to the HRM practices in a banking sector. Therefore, the present study focus on HRM practices and Employees performance in Private sector banks in in Bangladesh. This study concluded that HR practices and policies pave the way for improving and raising employee productivity in bank sector and leading to the achievement of organizational objectives, employee satisfaction and long term sustainability in Private Banks of Bangladesh.”

Pengaruh Dana Pihak Ketiga (DPK), Capital Adequancy Ratio (CAR), Loan To Deposit Ratio (LDR), Return On Asset (ROA), Terhadap Penyaluran Kredit

The purpose of this study is to determine the effect of Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR), Return On Assets (ROA) on credit at registered National Private Commercial Banks in 2015-2020 on the Indonesia Stock Exchange (IDX). The research time period used is 6 years, namely the 2016-2020 period. The population in this study are National Private Commercial Bank companies listed on the Indonesia Stock Exchange during the 2015-2020 period. The total samples tested were 11 companies selected by purposive sampling technique so that the data analyzed amounted to 66 companies. The data analysis technique uses panel data regression with the help of the Eviews 9.0 program. The results of this study indicate that Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR), Return On Assets (ROA) are equally influential positive and significant to Credit Disbursement.
 

Profitability determining factors of banking sector: Panel data analysis of commercial banks in South Asian countries.

The main purpose of this article was to investigate the impact of the determinants of profitability on the commercial banks in Asian countries. An Asian country like Bangladesh and India was selected as the research field. The present study also pursues to examine the impact of specific factors and macroeconomic factors on the profitability in the Bangladeshi and Indian private commercial banking sectors. The data were retrieved from the Annual Reports of Indian and Bangladeshi private commercial banks covering the period of 2010-2021. As sample, 40 private commercial banks were considered randomly, of which 20 were from India and 20 were from Bangladesh. The panel data research methodology was used as an estimation technique to analyze the data. Also, the ordinary least squares (OLS) regression model was used to scrutinize data. To check whether the models were appropriate, the Breusch-Pagan Lagrange Multiplier (LM) Test was employed. Banks' specific factors and microeconomic factors showed almost the same variations for both Bangladesh's and India's private banks. All models and tests were evaluated using E-views econometric software. The present study finds that the Return on Asset (ROA) from the banks' specific variables, strength of the Bank size (BS), and Debt to Asset Ratio (DAR) are found to be positive and significant. For banks, the Deposit to Asset Ratio (DTAR) and the Loan to Deposit Ratio (LDR) are found to be negative and significant. The Equity to Asset Ratio (EAR) and Debt to Equity Ratio (DER) do not have any positive/negative impact. As macroeconomic variables, the inflation rate (IR) and the GDP growth rate (GDPGR) are measured and found to be positive and significant for ROA. As macroeconomic variables, the Inflation Rate (IR) and the GDP Growth Rate (GDPGR) are found to be positive and significant in the case of ROA. The concerned authorities responsible for regulating the financial performance of the banking sector can use the results of this study to take various fruitful decisions on bank profitability.

IMPACT OF HRM PRACTICES & JOB SATISFACTION IN SELECTED PRIVATE BANKS OF BANGLADESH

Human Resource Management includes planning, job analysis, job design, acquisition, training and development, compensation, appraisal, benefits, rewards, safety, health, motivation, job evaluation, human relations, employee counselling and personnel research of human resources. The main purpose of the study is to investigate the Impact of HRM Practices & Job Satisfaction in Selected Private Banks of Bangladesh. To conduct this research, 85 respondents from Dutch Bangla Bank Ltd., United Commercial Bank Ltd., Dhaka Bank Ltd., & One Bank Limited leading private commercial banks of Bogura & Sirajganj District of Bangladesh. This study is based on primary as well as secondary data in nature. Primary data have been collected with help of a structured questionnaire which was administered personally to the bank employees. The primary data have been analysied with help of SPSS software. This study tried to disclose the relationship between employees’ satisfaction and various dimensions of HRM practices. In this study, we considered nine major factors which represented most of the human resources management practices followed by different private banks. The study reveals that all HRM dimensions exercised in the private banking sector of Bangladesh falls short to satisfy the employees equally. Most of the employees are dissatisfied with Compensation System followed by reward and motivation, Career & Development, training and development, Management System, and job design and responsibilities. It is found the HRM practices in the private banking sectors of Bangladesh have not been fully developed and there is the urgent need to employ the services of HR professionals, consultants and researchers to help shape and develop new directional focus that will ensure an efficient and effective human resource practices.” KEYWORDS: HRM, HRM practices, job satisfaction, private commercial banks, Bangladesh”

Determinants of Customer Engagement and Its Implications on Marketing Performance at National Private Commercial Banks in Jabodetabek

This research was conducted to determine the effect of CRM capabilities, corporate image and pricing strategy on customer engagement and their impact on the marketing performance of national private commercial banks in DKI Jakarta simultaneously. This study aims to analyse the factors that influence the marketing performance of national private commercial banks in Jabodetabek. The type of research used in this research is causality research that wants to explain cause and effect relationships between research variables. The method used in this research is descriptive and verification. The unit of analysis in this research is the organization, called national private commercial bank in Jabodetabek, and the unit of observation is the Branch Manager or Relationship Manager who is involved in marketing activities for bank products and services, and is responsible for bank's marketing performance. The result of this research found that CRM capabilities, corporate image, pricing strategies and customer engagement is proven to have a positive and significant influence on marketing performance and customer engagement at National Private Commercial Bank in Jakarta and Jabodetabek.

PERBANDINGAN PENGUKURAN STRUKTUR PERSAINGAN HERFINDAHL-HIRSCHMAN INDEX DAN CONCENTRATION RATIO INDUSTRI PERBANKAN INDONESIA

This study aims to determine, measure and analyze and compare the structure of banking competition in Indonesia.This study used a sample of 9 banks, each consisting of 4 State-Owned Commercial Banks (BUMN) and 5 National Private Commercial Banks (BUSN) with market share gains based on the largest Third Party Funds in Indonesia. The data analysis method used is concentration ratio analysis using Herfidahl-Hirschman Index (HHI) and Concentration Ratio (CR). The results of the analysis show that there is a difference in results between the ratio of HHI and CR, the HHI ratio shows that the Indonesian banking market is in a monopolistic competition market, while based on the CR ratio, Indonesian banks are in a perfectly competitive market, further analysis shows an increasing level of market concentration and the suitability of the Indonesian banking market with characteristics in the monopolistic market.In addition, based on each group of banks, the group of state-owned banks is in the market of loose oligopoly competition / monopolistic competition, in the Group of National Private Commercial Banks is in the structure of effective / monopolistic competition, while in the group of banks that are classified as large (BUKU IV) it is in the structure of loose oligopoly competition or monopolistic competition.

Market competition, capital regulation and cost of financial intermediation: an empirical study on the banking sector of Bangladesh

PurposeThis study aims to examine the impact of market competition, and capital regulation on the cost of financial intermediation of banks of the Bangladesh banking industry.Design/methodology/approachThis study has used a balanced panel dataset comprised of 340 firm-year observations for 34 commercial banks in the Bangladesh banking industry from 2011 to 2020. The Prais Winsten panel estimator has been used to assess the impact of market competition and capital regulation on the cost of financial intermediation of banks.FindingsBased on the regression results, this study has documented that greater market competition results in a lower cost of financial intermediation for banks. Similarly, an increase in the regulatory capital of banks increases the cost of financial intermediation of banks. The main findings of this study are found robust by using alternative proxies for the cost of financial intermediation, market competition and capital regulation. The regression results also suggest that private commercial banks tend to have a higher cost of financial intermediation than state-owned commercial banks.Research limitations/implicationsThe regulatory reforms should aim to foster sustainable and optimal market competition for the Bangladesh banking industry to regulate the market power of banks to reduce the cost of financial intermediation. The regulatory authority of Bangladesh should find the optimal policy measures for implementing the capital regulation in the banking industry which would reduce the cost of financial intermediation margin of banks.Originality/valueUnlike previous studies which have used structural market competition measures, this study has used non-structural market competition measures to assess the relationship between market competition and cost of financial intermediation in the Bangladesh banking industry.

Exploring Factors Influencing the Sales Crisis in Iraninan Banking Industry- A Case Study of the Private Commercial Banks

The purpose of this study is to address two questions: Which factors influence the probability of occurrence of the banking sales crisis in the national banking system regarding the private commercial banks? Amongst the influencing factors, which ones have the most influence on the occurrence of the banking sales crisis? To achieve the study purpose, we performed semi-structured interviews with 15 individuals working in the banking society (branch managers, marketing managers, R&D managers, PR managers, and corporate banking managers in private commercial banks). We explored the factors influencing the banking sales crisis in 3 major themes, 5 minor themes, and 67 concepts. Findings showed that the factors influencing the banking sales crisis are as follows: understanding the banking sales crisis, the external drivers, and the internal drivers. The banking sales crisis is most influenced by external drivers, amongst which the economic, political and then, the social factors are the most influencing ones. Following these factors, the internal drivers, such as the lack of professional training in marketing-related fields, the lack of sales experts, and the internal corruption among the banking staff have considerable impacts that exacerbate the sales crisis. Understanding the banking sales crisis is due to the lack of sales knowledge in the banking system.

Training and Development Programs in Public, Private, and Foreign Commercial Banks in Bangladesh: an Empirical Inquiry

Training and Development Programs in Public, Private, and Foreign Commercial Banks in Bangladesh: an Empirical Inquiry

Uncovering the Extent of Social Responsibility of Private Commercial Banks: A Comparative Study on CSR Activities during COVID Pandemic

The true meaning of CSR established when organizations contribute to society both in normal and crisis times where CSR; corporate social responsibilities reflect responsibility and commitment of social wellbeing from organizations to society. Bonding strong relationships with stakeholders, capturing customer loyalty, attracting investors, and holding the responsibilities for society, CSR plays a unique role. People across the world are trapped in the corona pandemic where an enormous loss hit almost every sector and the economy also thundered for a time being. The study focused on CSR initiatives and the dynamism of 43 scheduled Private Commercial Banks (PCBs) in the advent of the COVID-19 pandemic from the banking industry. Published secondary data has been used to perform a comparative analysis on the CSR components to extract the mechanisms of CSR activities and finding the extent the banks have accomplished the policy guideline of Bangladesh bank. The study considered the CSR activities of ten banks from 2018-2021where Islami Bank Bangladesh Limited (IBBL) and Dutch-Bangla Bank Limited discovered as the highest supplier of CSR funds for 2018-2019 while in 2020-2022, during the COVID, the uppermost contributors were IBBL and EXIM Bank. This study reveals before or after the COVID pandemic, PCBs prioritize disaster-management sectors for their CSR activities while focusing less on environmental, cultural, infrastructure, and income-generating activities. Despite the significance of a state's health-sector, the study didn’t observe as much COVID contribution as expected. However, the contribution from CSR has been gradually increasing since the COVID pandemic broke out. Keywords: Bank CSR, Social responsibility during pandemic, Private commercial banks, COVID Pandemic DOI: 10.7176/EJBM/14-20-01 Publication date: October 31 st 2022

Intellectual Capital On Firm Value Through Financial Performance

This study aims to analyze the effect of intellectual capital on firm value through financial performance. This research was conducted at National Foreign Exchange Private Commercial Banks listed on the Indonesia Stock Exchange during the observation period from 2019 to 2021 and involved ten banks using a purposive sampling method. Data were analyzed using panel data regression and path analysis. The results show that human capital efficiency has a significant negative effect on financial performance; structural capital efficiency capital and employed efficiency have a significant positive effect on financial performance; human capital efficiency, capital employed efficiency, and financial performance have a significant positive effect on firm value; structural capital efficiency has a significant negative effect on firm value; human capital efficiency and capital employed efficiency have a significant negative effect on firm value through financial performance; structural capital efficiency has a significant positive effect on firm value through financial performance.

Return on Assets and Covid-19: Do Capital Adequacy Ratio, Loan to Deposit Ratio and Operational Efficiency Ratio Matters?

This study aims to test the effect of Capital Adequacy Ratio (CAR), Loan to Deposit (LDR), and Operational Efficiency Ratio (OER) on Return on Assets (ROA) during the Covid-19 pandemic. This study utilizes a purposive sampling method using a population of National Private Commercial Banks (NPCB) for foreign exchange listed on the Indonesia Stock Exchange (IDX). The data used is the Annual Report for the 2019-2020 period which has been published and based on the purposive sampling method the number of samples used is 44. The analytical technique used in this study is multiple linear regression using SPSS 24. Based on the results of the study, it shows that CAR has a significant positive effect on ROA, LDR has no significant effect on ROA, and OER has a negative effect on Return on Assets (ROA).

Measuring Financial Strength Using the Profitability Index and its Impact on Achieving Financial Soundness: An Analytical Study of Several Iraqi Private Commercial Banks

The research focuses on measuring the profitability and financial soundness and evaluating their relationship and impact. The study aimed to measure and analyze financial strength using the profitability indicator and its impact on achieving financial Soundness. Ashur International Bank, National Bank of Iraq, Commercial Bank of Iraq, Gulf Commercial Bank) and the research started from a main hypothesis that (there is a significant effect of profitability on financial soundness in terms of its indicators of capital adequacy, quality of assets, liquidity), and the researchers used the statistical method to reach The results using the statistical program 10Eviews. The research concluded that profitability achieves financial soundness in the surveyed banks. The research also recommends investing in liquidity and achieving a balance between liquidity and profitability according to risk management.

The maturity‐lengthening role of national development banks

AbstractWe analyze why national development banks (NDBs) may provide longer‐term loans to firms than private commercial banks (PCBs). If NDB bonds have higher collateral value than PCB bonds, then NDBs may lend longer‐term than PCBs. NDBs may enjoy higher recapitalization willingness and capacity by the state and hence greater collateral value than PCBs. Moreover, NDBs may have advantages over state‐owned commercial banks if NDB bonds enjoy higher market liquidity. However, NDBs may suffer from poor monitoring quality owing to undue political intervention, thus undermining collateral value. Our study implies that NDBs are not substitutes for but complements to PCBs.

The Impact of Strategic Foresight on Achieving Financial Sustainability: An Applied Study in a Sample of Iraqi Private Commercial Banks

The research aims to determine the impact of strategic foresight with its dimensions (environmental survey, information processing methods, networks and individuals, organization, culture) on financial sustainability in its dimensions (cash and its equivalents, cash credit, revenues) and the degree of arranging these dimensions according to their importance and priority, as well as revealing The moral differences in the respondents response to the questionnaire items according to the surveyed banks, The problem of the study was identified through several questions that centered on whether there is an effect of strategic foresight in achieving financial sustainability for the banks investigated. 157 people who are at the administrative levels (high, middle, and executive) in the Iraqi private commercial banks (the National Bank of Iraq, Ashur Bank, Gulf Commercial Bank, Trans-Iraq Investment Bank), the financial statements and reports of those banks for the years (2014-2019) were also relied upon. In addition, personal interviews were conducted with some officials in the surveyed banks, and the data was analyzed based on statistical programs (MICROSOFT EXCEL), (SPSS V.26) in calculating (arithmetic mean, standard deviation, relative importance, simple regression coefficient, coefficient of simple regression, coefficient of Pearson Correlation, Path Analysis). The researcher reached a set of results, the most prominent of which was the existence of a significant effect of strategic foresight in achieving financial sustainability, as well as the presence of significant statistically significant differences in the respondents response to the two research variables.

Lending and regional growth in Brazil: the development bank BNDES versus private and public banks

Abstract The present paper distinguishes how the type of bank that provides loans is related to GDP per capita in Brazilian municipalities between 2007 and 2016. A unique data set allows us to discriminate between the effects of credits operated by either private or public commercial banks, and loans provided by the national development bank BNDES either directly or indirectly through accredited financial institutions. Using the system GMM estimator, we find that credit from public commercial banks has the highest effect on economic growth but it is concentrated in the most populated municipalities. Moreover, indirect BNDES loans show a robust and significantly positive relation to local GDP given that this lending facility especially targets firms in small, credit constrained regions, and it was provided non-cyclically.

Links Between Human Resource Management Practices, Work Motivation, and Work Commitment in Indonesia Banking

This article proposes examining human resource management practices (HRMPs) and work motivation in influencing work commitment in the Indonesian banking industry. This research employs quantitative survey research. The survey data contains 277 employees from 11 Indonesian private commercial banks. To analyze the data, this study uses the multiple regression method. This study finds that HRMPs and work motivation positively predict work commitment. Results also identify work motivation as a positive predictor of work commitment. Therefore, HRMPs and work motivation make positive contributions to influencing work commitment. Research on links between HRMPs, WM, and WC is important but has not been studied. This article is hoped to be a novelty. It is expected to address an important gap in the human resource management literature. HRMPs, work motivation, and work commitment in the Indonesian banking industry can contribute to human resources management literature. Indonesia's banking industry is booming. As a result, there is a need for efficient and experienced human resource recruitment. This research will contribute to Indonesia's banking industry development.