Sri Lankan Banking Sector Research Articles

Self-Efficacy, Task Performance and Contextual Performance: A Sri Lankan Experience

The relationship between self-efficacy and job performance has long been established. But, there is limited research on self-efficacy and different dimensions of job performance and the extent of the association has not been investigated comprehensively in the context of the Sri Lankan banking sector. Therefore, the purpose of this study was to investigate the impact of self-efficacy on task performance and contextual performance of the employees in the banking sector in Sri Lanka. The data were randomly collected from a sample of 176 managers and 357 non-managerial employees in the banking sector in Sri Lanka. A questionnaire was administered to the employees to measure their self-efficacy, task performance, and contextual performance. The collected data were analyzed using correlation coefficient and regression analysis. The results of the study indicated that self-efficacy had significantly and positively correlated with task performance and contextual performance. According to the findings, the employees’ trust on their capabilities to organize and execute courses of action required to accomplish the task has significantly and positively correlated with the behaviors that are directly related with the completion of the job and with the extra role supporting behaviors which are not directly related to the job.

Self-Efficacy, Task Performance and Contextual Performance: A Sri Lankan Experience

The relationship between self-efficacy and job performance has long been established. But, there is limited research on self-efficacy and different dimensions of job performance and the extent of the association has not been investigated comprehensively in the context of the Sri Lankan banking sector. Therefore, the purpose of this study was to investigate the impact of self-efficacy on task performance and contextual performance of the employees in the banking sector in Sri Lanka. The data were randomly collected from a sample of 176 managers and 357 non-managerial employees in the banking sector in Sri Lanka. A questionnaire was administered to the employees to measure their self-efficacy, task performance, and contextual performance. The collected data were analyzed using correlation coefficient and regression analysis. The results of the study indicated that self-efficacy had significantly and positively correlated with task performance and contextual performance. According to the findings, the employees’ trust on their capabilities to organize and execute courses of action required to accomplish the task has significantly and positively correlated with the behaviors that are directly related with the completion of the job and with the extra role supporting behaviors which are not directly related to the job.

Determinants of Non Performing Loans: Evidence from Sri Lanka

Determinants of Non Performing Loans: Evidence from Sri Lanka

Determinants of Non Performing Loans: Evidence from Sri Lanka

In the recent past, the global financial crisis and the subsequent recession in many developed countries have increased households’ and firms’ defaults, causing significant losses to the banks. Case of Sri Lanka is no difference. The changes in the economic conditions are believed to have a critical role to play in determining the level of nonperforming loans. Regulators all over the world have started to pay more attention to the credit quality of the Banks and strengthened the regulatory frameworks. This paper attempts to study the macroeconomic determinants of banks’ loan quality in Sri Lanka by analyzing secondary data over the period 1998–2014. The methodology to be adopted for the study was arrived at upon careful review of the literature and following the empirical studies conducted on the determinants of the nonperforming loans. The finding of the analysis is that, out of the six determinants, GDP growth rate and the Export Growth are significant in determining the level of the NPLs in the Sri Lankan banking sector. The relationship of the GDP with the NPL is found to be positive which is not consistent with the majority of the empirical findings Keywords : Nonperforming Loans, Macroeconomic Determinants,

Impact of Personality on Career Success of the Employees in the Sri Lankan Banking Sector in Western Province

Area of the Study As an important determinant of career success of an employee, this study is to investigate the impact of personality on career success of employees in Sri Lankan banking sector. There is an empirical and knowledge gap in the Sri Lankan context on this research area. Problem of the Study The major objective of this research study is to examine whether personality has an impact on the career success of the employees in Sri Lankan Banking sector. The research problem of this study: whether personality has an impact on the career success of the employees in the Sri Lankan banking sector in Western province. Method of the Study The data were collected from a convenient sample of 150 employees in commercial banks in Sri Lanka by using a structured questionnaire which consisted of 59 questions. Data was analyzed using univariate analysis, correlation and regression analysis with the SPSS 16.0 (Version). Findings of the Study According to the findings of the study personality has an impact on career success. Extraversion, openness to experience, agreeableness and conscientiousness relate with objective career success positively and further emphasizing positive relationship between conscientiousness and subjective career success. Justifying the empirical evidences it is revealed that there is a negative relationship between neuroticism and both objective and subjective career success. Conclusion of the Study It is concluded that individual’s personality traits influence the objective and subjective career success. Overall personality has an impact on career success of the employees in the Sri Lankan banking sector in Western province. Keywords: Personality, Big Five Model, Objective Career Success, Subjective Career Success

Financial stability in a moderately competitive banking market: evidence from the Sri Lankan banking sector

Banks in the developing countries are competing in an environment where the financial infrastructure or the prerequisites for such competition is lacking. Therefore there is a current debate in banking literature regarding the effect of bank competition on the stability of the banking sector. The present paper provides new and rather scarce evidence of effects of banking sector competition on financial stability of the Sri Lankan banking sector during the period 1996 to 2010. By analyzing a comprehensive set of panel data the study reveals that the Sri Lankan banking sector is moderately competitive as per Panzar and Rosse H-Statistic and, highly unstable as per Z- score. The results of the core analysis provide evidence for a U shape relationship between competition and stability in the Sri Lankan banking sector during the sample period. Hence, a different approach emerges, with underdeveloped countries giving a stronger role to competition authorities to understanding the complex relationship between competition and stability in the financial sector.The Kelaniya Journal of Management, Vol. 4(1); 2015: 1-30

Free and Open Source Software Technology Adoption in the Sri Lankan Banking Industry

This research explores Free and Open Source Software (FOSS) adoption in the Sri Lankan banking sector. It produces two types of results, which are unique. One is an 8-level abstract model based on the criticality for the business, which represents all the software application usage in Sri Lankan banks. Then it presents the adoption of FOSS in banks, in terms of two quantified indices, namely General FOSS Adoption Index and Category Specific FOSS Adoption Index. The first index modeled so that it represents the ‘strategic nature of usage of FOSS’ as well as the ‘FOSS friendliness’ within the bank. The second index represents the FOSS adoption in the bank, in terms of extraction of the ‘best technological features out of them’ and the ‘level of adoption’. The results reveal that the Sri Lankan banks do not have good levels of FOSS adoption, though all the banks use FOSS applications for some purpose or another. By further drill down into the model, it was discovered that the lack of government policy initiative towards FOSS has had a causal effect on the poor adoption ratings in the Sri Lankan banking context. Further it will greatly helpful to have FOSS supportive software business in the country, which will influence banks to get better service for FOSS products.

The Impact of Five Factor Model of Personality on Organizational Citizenship Behavior of Non-Managerial Employees in the Banking Sector in Sri Lanka

The purpose of this study was to investigate the impact of five factor model of personality of non-managerial employees on their organizational citizenship behavior in Sri Lankan banking sector. The convenience sampling method was used to collect the sample of 150 non managerial employees who work in North Central province in Sri Lanka. A questionnaire was administered among the non-managerial employees to measure their big five personality and organizational citizenship behavior. The collected data were analyzed using correlation coefficient and regression analysis. The results of the study indicated that extraversion, agreeableness, conscientiousness and openness to experience had significantly and positively correlated with organizational citizenship behavior. Results further indicated that neuroticism had significant negative association with organizational citizenship behavior.

Relationship marketing and customer orientation of sales people: learning from banks

Selling is supremely important in marketing and considered as the lifeblood of marketing. It is evident that selling based on customer orientation and relationship marketing will play a vital role in attracting, retaining and sustainable growth of customers. This study based on Sri Lankan banking sector aims to attempt such integration by conceptualising the concepts of customer orientation and relationship marketing in Sri Lankan corporate banking sector. Responses were gathered via a survey questionnaire to measure interaction and impact of customer orientation on relationship marketing. The results show that there is a significant relationship between customer orientation and relationship marketing. This has been highlighted in Sri Lankan banking context as it has a significant contribution to national economy as well as a non-price determinant to get competitive advantage in the market.

Facilities offered by the Banks and Expectations of IT Savvy Banking Customers

The banking industry across the globe has witnessed a revolution in the last two decades in its efforts to meet the ever growing customer demands. The advancement of technology has encouraged many organisations to move across markets to position themselves as multinationals and the Sri Lankan banking sector is no different. Continuous analysis of customer demands has driven the banks to rely heavily on technology thereby crowding the markets with many products and services. Sri Lankan banks today are continuing to introduce innovative electronic banking solutions to their customers. The question however is: How much of these electronic banking solutions are actually used by the customers? This study was conducted to identify the consumer response on facilities offered by the bank. A survey was conducted and data collected from 404 banking customers in the Colombo district were analysed. Results of the survey reveal that the topmost facilities demanded from the bank are accurate and secure services. The ATM is ranked as the third and the usage is 80%. The research concludes that customers expect the bank to provide a high level of service more than the electronic-based solutions per se.