Traditional Commercial Banks Research Articles

The Rise of Digital Banking in the UK Financial Sector and Its Impact on Commercial Banks

In the contemporary financial domain, the emergence of digital banks has revolutionized operational models in traditional commercial banking. This article delves into how digital banks, through advanced technology and customer-centric services, compel commercial banks to revaluate their operational and regulatory frameworks. Specifically, it focuses on the digital banking market in the UK, analyzing how digitalization and technological progress are driving the evolution of competitive dynamics within the financial sector. As one of the worlds foremost financial hubs, the UKs trends in financial market development have profound implications for the global financial system. The British government and regulatory bodies have proactively adapted to these shifts, framing policies that facilitate innovation while ensuring security and compliance within digital banking. This backdrop sets the stage for this report to explore the transformative impact of digital banks on traditional banking models in the UK, aiming to understand the regulatory adaptations and the overall influence of digital entities on the conventional banking landscape.

Efficient Use of Financial Technology in Consumer Finance Companies

With the rapid advancement of China's economy, the demand for consumer credit has surged, driven by diversified consumption scenarios and product categories. Consumer finance companies, alongside traditional commercial banks, have become pivotal in meeting this demand. The integration of financial technology (fintech) into the consumer finance sector has revolutionized the entire business process, encompassing pre-lending, lending, and post-lending phases. This study explores the application and impact of fintech on consumer finance companies, focusing on customer acquisition, risk management, and operational efficiency. Additionally, the study addresses the emerging risks associated with fintech, such as technological black boxes and algorithmic biases, which pose new challenges for risk management. By analyzing the fintech-enabled business processes and risk control mechanisms, this paper provides insights into optimizing fintech applications to enhance efficiency and mitigate risks in consumer finance companies.

Earning Moderates the Influence of CAR, NPL, and BOPO on Company Value in Conventional Banks Listed on the IDX for the 2020-2022 Period

The goal of research on traditional commercial banks listed on the Indonesia Stock Exchange (IDX) is to use earnings as a moderator to ascertain the impact of the capital adequacy ratio (CAR), non-performing loan (NPL), and BOPO on the value of the company. Variables This study uses a quantitative approach and sample data collection through purposive sampling. The samples obtained for this study are 69 samples that meet the standards of the Indonesia Stock Exchange (IDX) and financial statements for the 2020-2022 period. Classical hypothesis testing and moderate regression analysis (MRA) methods were used to analyze the results of this study. The results showed that the Capital Adequacy Ratio (CAR) did not have a significant effect on the value of the company, and non-performing loans (NPL) did not have a significant effect on the value of the company and operating costs. (BOPO) does not have a significant influence on the value of the company. Capital Adequacy Ratio (CAR) can be changed and affect company value, profit cannot moderate the impact of non-performing loans (NPL) on company performance Product value cannot reduce Operating Costs and Operating Income (BOPO) to company value.

The Research on the Impact of Shadow Banking on Small and Medium-sized Enterprises in China

Because of the serious financial repression in China's financial system, the traditional commercial bank's credit is very large. It is difficult to reach small and medium-sized enterprises and industries restricted by credit policies. In order to solve this existing problem, those Independent of traditional commercial banks, not subject to or less supervision by the central bank, and capable of providing credit Institutions have emerged, traditionally known as shadow banks. Shadow banks have been quantitative easing money It played an important role in the implementation of the policy. This paper will explain China's shadow banking system from the introduction of shadow banking, the development of shadow banking in China and some of its impacts, as well as the introduction and analysis of special cases of shadow banking and the impact of shadow banking on small and medium-sized enterprises. This paper draws the following conclusions through research: With the growing development of shadow banking in China, China's shadow banking system is becoming increasingly complex, and small and medium-sized enterprises have gained more development opportunities due to the characteristics of high risk and high returns brought by shadow banking.

Digital finance, bank competition shocks and operational efficiency of local commercial banks in Western China

The rise of information technology has triggered the digital financial revolution and reshaped the competitive landscape of the commercial banking industry. This transformation has profoundly affected the operating efficiency of many small and medium-sized traditional commercial banks in Western China. We combine panel data from 130 local commercial banks in Western China from 2008 to 2021 to investigate the impact of digital finance on the operational efficiency of these local commercial banks. Our findings indicate that the overall operational performance of local commercial banks in Western China has declined under the influence of digital finance. Additionally, the intensification of banking competition has disrupted the established traditional market competition structure, with this mechanism exerting a more pronounced weakening effect on the operational performance of these local banks. This research provides rational recommendations for the high-quality development of the banking industry in the Western region, thereby enhancing the quality and efficiency of commercial banks' services to the real economy.

Research on the Transformation of Traditional Commercial Banks Based on the Perspective of Financial Technology

With the rapid development of technology and the acceleration of the process of informationization, the financial industry has paid increasing attention to financial technology. The rise of financial technology can help improve the operational efficiency of the financial system, promote the structural change of the financial supply side, promote the development of "double cycle", and promote the high-quality development of China's economy. Fintech has had a profound impact on the business model of the traditional banking industry, transforming it from intermediary to platform. Emerging technologies such as artificial intelligence, big data analysis, blockchain and cloud computing have brought more efficient, convenient and personalized financial services to the banking industry. In the face of changing market demand and fierce competition, traditional banks have begun to transform with the help of technology. However, there are still certain challenges in the process of financial technology change. To achieve the transformation, traditional banks must develop a clear digitalization strategy and invest more in technology strength and architecture. Traditional banking firms should establish partnerships with fintech firms, innovative companies, and others to develop innovations and share resources. In addition, they should pay attention to customer experience and provide personalized, convenient, and high-quality financial services to customers. This project will contribute to an in-depth understanding of how fintechs change traditional business models and facilitate the transformation of commercial banks in the fintech environment.

Digital disruptors at the gate. Does FinTech lending affect bank market power and stability?

This paper examines the effect of FinTech lending on the market power and stability of incumbent banks. Using an international sample of 6,225 banks during the period 2013–2019, our results show that the volume of credit provided by FinTech lenders negatively affects bank market power and stability. These results are influenced by the legal framework and institutional quality of each jurisdiction. Furthermore, the impact of FinTech lending on bank stability is partially channeled by the effect of FinTech credit on the market power of incumbent banks. Our main results – lower bank market power and bank stability – are also observed at the country level and after addressing potential endogeneity concerns. Regarding policy implications, more prudential regulation on FinTech activity is needed to address information imbalance issues and potential risks stemming from their activities. Furthermore, reinforcing the legal framework and institutional structure could serve to mitigate the adverse effects of FinTech lending on the traditional commercial banking sector.

Research on Sustainable Development Strategy of Commercial Banks under the Background of Internet Finance

In recent years, with the continuous development of social economy and the official arrival of the Internet era, Internet technology has penetrated into all fields of social economy, greatly changed people's way of production and life, and brought unprecedented opportunities and challenges for the development and innovation of all walks of life. At present, under the background of deepening financial innovation, the operation mode of Internet finance has been recognized by the majority of customers, but it also has a certain impact on the business of commercial banks. The survival and development of commercial banks are facing many challenges, forcing commercial banks to constantly change their operation mode to meet the needs of competitive development. Based on this, this paper starts with the concept and characteristics of Internet finance, analyzes the impact of the Internet on the operation of commercial banks, https://fanyi.youdao.com/download 2 and uses SWOT model to analyze the advantages, disadvantages, opportunities and challenges of the transformation and development of commercial banks under the background of Internet finance, and finally puts forward the countermeasures for commercial banks to achieve sustainable development. The purpose of this paper is to promote the traditional commercial banks to find a way to coexist with Internet finance and provide customers with more distinctive financial services.

Traditional commercial banking and systemic risk: Evidence from Hungary

Systemic risk reduction in banking is a key component in maintaining financial stability. Even after extensive explorations, the role of nontraditional activites in systemic risk still offers several questions to study. The paper aims to contribute to the literature on the topic by empirically examining whether traditional and nontraditional banking activities differ in terms of systemic risk. To answer this question, traditional commercial banking is assumed to be represented by the loan-deposit interest margin income component. Hungarian banking sector data between 2003 and 2020 are analyzed with principal component analysis and multidimensional scaling. The primary measure in systemic risk quantification is the return covariance-based absorption ratio. Empirical findings suggest that, when compared to a more diverse range of banking activities, traditional commercial banking may be characterized by lower systemic risk. Although in these two cases the most influential components of systemic risk may be considered as similar, the other components exhibit significant differences.

Analysis of Customer Management of Commercial Banks

At present, most traditional commercial banks tend to design products based on their own interests and use universal standards to issue loans to customers. They rarely provide customized and personalized services based on the actual situation of customers, or not even trying to understand customers’ financial service needs. From the perspective of customer relationship management, there are still many problems and areas for improvement. This paper takes the JB branch of the Bank of Ningbo in China as an example. By sorting out the customer relationship management theory, this paper organizes and categorizes the research results on customer relationship management of commercial banks and proposes that commercial banks should provide customized and personalized services for different customer groups. The theoretical basis of services is designed to provide reference for the modern development of commercial banks.

The Role of fintech in the Innovation and Transformation of the Banking Industry

The rapid development and large-scale application of artificial intelligence, data mining, big data, and cloud computing have already led to dramatic changes in the ecological conditions of social and economic agents. Under the rapid technological development, traditional commercial banks are facing problems such as insufficient development momentum. Therefore, to accelerate its digital transformation, financial technology (fintech) has prompted the banking industry, so as to keep up with the development trend of the times and empower the innovation of commercial banks. Specifically, by analysing the current situation and the impact of the relevant major fintech on the development of the banking industry, this paper aims to gain insight into the advantages and directions of the transformation. The final conclusion of this paper is that, currently, all regions are spending more money on investing in the fintech industry. However, the underlying technological strengths are unevenly developed, with Europe and the US being the most prominent and the Asia-Pacific region catching behind. Fintech represented by artificial intelligence, big data, and cloud computing, can reduce banks' operating costs, helping them accurately profile their customers and intelligently do marketing.

The Financial Implications of the Emergence of Digital Currencies under the Development of the Digital Economy

Discuss whether the gradual popularization of digital currencies will have any impact on Internet finance. When digital currencies slowly enter our lives, the way we trade will gradually change, which will have a subtle impact on us. This paper through the literature induction method, found that not only digital currency will affect the development of Internet finance, but also affect the development of traditional commercial banks, through the study of the structure of Internet finance and the theory of digital currency, this paper can be inferred The emergence of digital currencies and how their gradual popularization will affect Internet finance, and through observation and summary, digital currencies have gradually penetrated into people's trading methods, and the issuance of digital currencies will bring many positive impacts to Internet finance. For example, the settlement method of digital currency will reduce the transaction costs of Internet finance, and the issuance of digital currency may lead to the rise of interest rates, making people more inclined to become investors, enter the Internet financial market for investment and purchase derivatives, thereby promoting currency circulation and promoting international economic development. Therefore, the issuance of digital currency is conducive to the development of a country's Internet finance, which can bring many benefits to Internet finance, so that the economy can be further developed and technology can progress.

Transformation and Upgrading Development Strategies of Small and Medium-sized Banks Under the Influence of Internet Finance

This paper comprehensively analyzes and compares the specific influencing factors of China's Internet finance policies on the current operation of small and medium-sized commercial banks, as well as the possible causes of the impact of China's Internet finance new policy on the transformation of small and medium-sized commercial banks, specifically analyzes the innovative transformation business practices of China Everbright Bank under the influence of the Internet finance new policy, and proposes to formulate relevant business transformation service countermeasures for small and medium-sized commercial banks. This paper first studies and analyzes the impact of Internet financial technology on the current digital business transformation and development direction of small and medium-sized commercial banks from the market perspective, the bank perspective and the regulatory perspective, and then analyzes the current external policy environment of Internet finance industry and the internal management environment of small and medium-sized state-owned commercial banks in China. Through different perspectives, it analyzes the advantages and disadvantages of traditional commercial banks, so as to propose relevant digital transformation countermeasures for small and medium-sized banks.

Evaluation of Financial Risk Management in Iraqi Banks Comparison Study of Islamic Banks and Commercial Banks

Current research aims to study the extent to which Iraqi banks use risk management in works and methods to eliminate the risks associated with their business activity within the Iraqi banking sector, Also for comparison between Islamic banks, commercial and conventional banks, and traditional commercial banks with Islamic branches (Islamic Windows) In terms of risk management jobs. A standardized questionnaire was used to cover the main aspects of risk management: 1) Understanding Risks, 2) Managing Risks, 3) Identifying Risks, 4) Analyzing and Evaluating Risks, 5) Monitoring Risks, 6) Risk Management Practices Finally, 7) the types of risks faced by banks of all kinds operating in the Iraqi banking market, using a sample of 25 banks operating in the Iraqi banking market. The questionnaires were distributed to heads and managers of risk departments in banks, also it was supported by personal interviews. The results of the statistical study proved that the most types of risks faced by Islamic and traditional commercial banks in Iraq operating in the Iraqi banking market are both credit risks and money risks. Money risk represents one of the most important types of risk for Islamic banks, as there are not many short-term investment tools that are compatible with the provisions of Islamic Legislation. Which can attract the benefits of money to the governors of Islamic banks, and this is one of the most important challenges facing Islamic banks at the present time (short-term employment) Whereas, the activity management contracts within Islamic banks differ in the nature of their work and structure from traditional commercial banks to ensure their compliance with the provisions of Islamic legislation. After the approval of the Sharia Supervisory Board

The Impact of Internet Finance on the Profit Efficiency of Commercial Banks: Theory and Evidence From China

According to the reality of China, we divide Internet finance into four parts as Internet payment services, Internet financing services, Internet financial management services, and online banking business of traditional commercial banks, to discuss the impact of Internet finance on the profit efficiency of commercial banks. Our theoretical analysis shows that the external impact of Internet finance will reduce the profit of commercial banks, but Internet financing and Internet financial management have less influence, and the financial Internet business can improve the profit efficiency of commercial banks to some extent. An empirical test of Chinese data provides support for these predictions, it suggests that the estimated impact is significant and robust. Furthermore, differences in ownerships and profit efficiency of commercial banks will be at work.

РОЛЬ ЭЛЕКТРОННОГО МАРКЕТИНГА В ПОВЫШЕНИИ ПРИБЫЛЬНОСТИ КОММЕРЧЕСКИХ И ИСЛАМСКИХ БАНКОВ СИРИИ (СРАВНИТЕЛЬНОЕ ИССЛЕДОВАНИЕ)

The banking system plays an important role in the development of the Syrian economy. However, the country is experiencing a deep political and economic crisis as a result of the armed conflict. This negatively affects the work of all types of banks. Syrian commercial banks face financial stability risks due to uncertainty. Islamic banks are also facing difficulties as they are regulated by Sharia law. At the same time, the demand for banking products and services remains. The expansion of digital business and the introduction of new technologies create additional opportunities for the promotion of financial products and services, including traditional commercial banking. At the same time, the Islamic banking market in Syria, based on Shariah principles, can increase customer access through the use of modern e-marketing tools such as digital advertising, social media promotion and mobile banking. This opens up new opportunities to expand the client base of Islamic banks in the country. The purpose of the study is to evaluate the use of electronic marketing tools by commercial and Islamic banks in Syria using a previously developed methodology, and to determine the impact of such use on their financial performance. It is planned to develop methodological recommendations for the use of digital marketing technologies by Syrian banks, taking into account the specifics of the political situation. This will help improve their efficiency in difficult conditions.

Intended benefits and challenges of cooperation between FinTechs and commercial banks

Abstract The financial industry has undergone several changes in recent years. One of these changes is the emergence of financial technology (FinTech) companies that are radically transforming the industry, posing a significant challenge to traditional commercial banks. In this study, we examined the responses of the Hungarian banks to the emergence of innovative FinTech startups and explored the benefits and barriers of the FinTech accelerator programs launched by banks. We conducted 27 semi-structured interviews with top executives of banks, FinTech startups and scaleups, investors and regulators to identify the potential benefits and barriers during the cooperation between banks and FinTechs. The most important results of our research show that during the partnership, several advantages can be gained by both parties. Still, the realization of these benefits is significantly hindered by the excessive exploitation focus of banks. Ambidextrous internal champions or suppliers of the banks are needed for successful cooperation between FinTechs and banks.

Effect of the Structure of the Balance Sheet on the Performance of the Commercial Banks Taking Listed Commercial Banks in China as Examples

Commercial banks play an important role in China's national financial system. However, in recent years, with the fast development of internet finance and diversification of financing method, traditional commercial banks have been confronted with many sources of shock. In this context, commercial banks are struggling making profit to survive. However, in the way they adjust, some are successful and some are not. At the same time, how to adjust the structure of its balance sheet is very important for the development of commercial banks. This research focuses on the relationship between the structure of the balance sheet and the performance of the commercial banks, using empirical analysis method. And the data comes from the annual reports of 42 listed commercial banks from 2011 to 2020.At last, the result shows that loan-deposit ratio is in negative correlation with the performance, inter-bank borrowing to inter-bank lending ratio is in positive correlation with the performance, and loan-asset ratio is in positive correlation with the performance. In addition, the increase on the proportion of trading financial assets can also lead to the improvement of the performance. By finding out the relation between the structure of the balance sheet and the performance, this research has indicated an effective way of the adjustment on the balance sheet aiming for a better performance, with sufficient evidence and objective analysis.

Analysis of the Effects of Macroprudential Policy Instruments on Commercial Bank Liquidity in Indonesia 2018-2021 Period

Liquidity is an important aspect that can be considered a bank's lifeblood. To maintain business continuity, banks must always manage liquidity effectively. Liquidity easing is one strategy to assist economic growth during the COVID-19 epidemic. Where macroprudential policies are used to ease liquidity restrictions. As a means of promoting economic growth, the government seeks to induce greater lending to debtors. This easing of liquidity, on the other hand, is thought to help maintain bank operations solvent. This easing of liquidity during the pandemic was carried out by reducing the reserve requirement followed by an increase in the MPLB ratio. In addition, Bank Indonesia strengthened RIM by adding an export money order in its calculation. The goal of this research is to look at how macroprudential policy, such as the Statutory Reserves instrument, the Macroprudential Intermediation Ratio, and the Macroprudential Liquidity Buffer, affects the liquidity of traditional commercial banks in Indonesia from 2018 to 2021. The monthly data utilized comes from the Financial Services Authority website, specifically the Indonesian Banking Statistics section. To evaluate the three hypotheses, the researchers employed a multiple linear regression approach utilizing EViews 10 software. First, the Statutory Reserves have a negative and minor influence on commercial bank liquidity, according to the findings. Second, MIR has a good and considerable impact on commercial bank liquidity. Third, MPLB has a considerable negative impact on commercial bank liquidity. Simultaneously, the three independent factors are discovered to have an impact on commercial bank liquidity.

Application of Innovative Risk Early Warning Model Based on Big Data Technology in Internet Credit Financial Risk

The emergence of the new economic model of Internet credit industry brings convenience to people's lives, and it also impacts the business model of traditional commercial banking to a great extent. How to better improve the operation mode, correctly assess and avoid the risks of Internet finance, and create a healthy, orderly, safe and sustainable development environment of Internet finance industry is an important research topic in this industry under the current situation. This paper studies the application of innovative risk early warning model based on big data technology in Internet credit financial risk assessment, aiming at maximizing the utilization efficiency of internal and external data, building a timely, accurate and effective early warning system with independent characteristics, and creating a sharp weapon for intelligent risk early warning. In order to promote the healthy and benign development of China's Internet finance industry.