Types Of Banks Research Articles

Determinants of Non-Performing Loans Between Islamic And Conventional Banks: A Systematic Literature Review

This article conducts a systematic literature review of 52 papers on the determinants of non-performing loans (NPL) published for 2006-2022 in peer-reviewed journals. This paper adds to the development of this emerging field of systematic review in non-medical field settings by mapping existing research to inform future research exploits. This study synthesizes NPL studies by applying the systematic review methodology. The data synthesis is done through first and second-level codes. The first level codes group studies according to bank-specific, borrower-specific and comparative (Islamic vs conventional bank types). The literature is conscientiously analyzed through 13 subcategories using an open coding process. The literature synthesis shows that borrower-specific factors that may determine NPL include borrower profile, internal factors, external factors, and social issues. Also, the bank-specific factors that may influence NPL growth include economic conditions, management competence, profit maximization, and information economics. The findings highlight that the way borrower profiles, banks-specific factors and macroeconomic factors interact to influence NPL still needs more understanding. Further, Islamic banks and conventional banks seem to behave similarly regarding many bank-specific and macroeconomic factors even though the profit and loss sharing contract used in Islamic banks was deemed to moderate NPL positively. But the borrower-specific factors' interaction with bank-specific and macroeconomic factors of Islamic banks clients remains unclear. This highlights an important research gap in understanding the behavior of Islamic bank borrowers towards NPL prediction.

Does the Development of Money Market Funds in China Increase the Bank Liquidity Risk?

Abstract This paper studies the relationship between money market funds (MMFs) and bank liquidity risk in China. Based on the unique feature of "liquidity stratification" in China, the paper proposes a model of interbank market that includes big banks, small banks, and MMFs. The model drives that the emergence of MMFs pushes up the interbank liability ratio of the banking system and raises the bank liquidity risk. Using unbalanced bank-level panel data from China for the period from 2014 to 2021, we find that the empirical results are consistent with the theory. It is shown that the expansion of MMFs significantly elevates the bank liquidity risk in general, but this effect varies significantly by bank type, bank size, and different capital adequacy ratio. Moreover, the interbank liability channel plays an important mediating transmission role in the process of MMFs affecting bank liquidity risk. Keywords: Money market funds, Bank liquidity risk, Interbank liability channel.

Социальный банкинг: элиминация двусмысленности

Introduction. Social banking as a financial practice of socially-oriented banks is widely interpreted as value-oriented, alternative, civic, ethical, sustainable banking organizations, which makes it possible for an interested banking organization to demonstrate its social and environmental obligations. Meanwhile, they have a clear discrepancy between the declared intentions and the real situation. The article presents a new classification of banks in accordance with their real socially useful activities. Based on the review of sources, the evolution of social banking is presented, the definition of a socially-oriented bank is formulated as a special type of bank aimed at maximizing a positive contribution to the development of society by providing banking services in accordance with the principles of sustainable development, transparency and cooperation. Methods. The research is based on the analytical approach, as well as methods of comparison and abstraction. Results and their discussion.  The author's typology is proposed. It is concluded that only ethical banks really diverge from the prevailing logic of traditional banks. As for social banks, using investment banking operations, even moderately, they differ from conventional banks only in quantitative terms. The related feature of traditional and social banks can ultimately be visualized as variations within the same paradigm.

Financial performance of categorical banking sectors in Bangladesh

This study's objective is to assess the financial performance of the categorical banking sectors in Bangladesh from 2013 to 2017. The study used secondary sources of data that were collected from the Bangladesh Bank's annual reports. Through the use of the CAMEL test, an ANOVA, and an ordinary least squares model, this paper attempts to determine whether there are any appreciable differences in the capital adequacy, asset quality, management efficiency, earning ability, and liquidity among the four categories of banking sector in Bangladesh. The CAMEL test reveals that among the four types of banks, foreign commercial banks do the best. Among the four categories of banks, state-owned development financial institutions have performed the worst. When compared to one another, the four banking organizations' performance is found to be significantly different. IIUC Business Review Vol. 7-8, Dec. 2018-19 pp. 107-122

COMPARATIVE STUDY OF EFFICIENCY AND PRODUCTIVITY BETWEEN CONVENTIONAL COMMERCIAL BANKS AND ISLAMIC COMMERCIAL BANKS: EVIDENCE FROM INDONESIA

Abstract
 This study aims to analyze and compare the efficiency and productivity of Conventional Commercial Banks (BUK) and Islamic Commercial Banks (BUS) in Indonesia, with 19 BUK and 14 BUS in Indonesia. This study uses the CRS and VRS models in analyzing efficiency with Data Envelopment Analysis while analyzing productivity using the VRS model using the Malmquist Productivity Index. The results of this study indicate that there are still BUK and BUS bankers who have not achieved maximum efficiency, and there are still many of the two types of banks with low efficiency. The leading cause of the inefficiency of BUK and BUS in Indonesia is caused by output variables, namely the amount of financing and operating income. This study also revealed that the Covid-19 pandemic caused a decrease in the efficiency of the BUK, while the efficiency of the BUS was relatively stable and even slightly increased. Furthermore, based on an analysis of productivity during the Covid-19 pandemic, BUK and BUS in Indonesia experienced an increase due to high technological changes. Then this study also revealed the results of the Malmquist index score. Changes influence changes in productivity efficiency and changes in technology. This study finds that the dominant factor that causes the increase in productivity of BUK and BUS in Indonesia is influenced by technological change factors. Thus digitalization in the banking industry sector is essential. This research also provides recommendations for several parties, such as practitioners, academics, and regulators

Efficiency, Performance, Potential Improvement And Dual Banking Analysis of BPR & BPRS In West Java

SMEs are crucial to reviving the national economy in times of economic globalization and the Covid-19 pandemic. One of the tactics required to boost the competitiveness of MSMEs is to take use of efficient financing options offered by banks. This study compares the effectiveness, effectiveness, and improvement potential of BPR and BPRS in West Java and their applicability to MSMEs. Data Envelopment Analysis (DEA) is the analysis employed, and the study period is from 2016 to 2021. The banking sector in Indonesia includes BPR and BPRS. In order to successfully navigate the era of economic globalization and national economic recovery, it is critical to assess the degree to which these two banks can collaborate in the best possible way to promote increased prosperity and competitiveness of MSMEs, primarily through productive financing. In West Java, 20 BPRs and 20 BPRS served as the research samples. The information used is secondary information gleaned from each bank's annual financial reports for the years 2016 through 2021. The study's input variables are third-party money, operating costs, and fixed assets. Operating income and provided funding are additional output variables. The findings of this study demonstrate that efficiency trends for BPR and BPRS in West Java varied across the study period of 2016–2021. While BPRS saw a considerable reduction throughout the epidemic, West Java's BPR efficiency remained constant. Furthermore, in West Java, BPRs are more efficient than BPRS when comparing the two types of banks. This study also examines potential changes that could be made to programs to reduce input and output-related inefficiencies. Furthermore, the output variables, notably the financing variables offered, are generally the root of the two types of banks' most important inefficiencies. Additionally, this study makes recommendations to academics, practitioners, and regulators.

The Efficiency of BPR/S Industry in Sumatra, Indonesia

Financial institutions are one of the sectors that play a vital role in national and regional economic growth. BPR and BPRS are one of the banking financial industries that play a role in providing financial services to people with a weak economy and MSMEs, so it is necessary to accelerate improvements in BPR and BPRS. This study aims to measure the efficiency and performance of BPRs in Sumatra, see the impact of the pandemic on BPR and BPRS operations and conduct regional analysis on BPRs and BPRS in Sumatra. Using a sample of 30 BPRs and 30 BPRS in Sumatra, this study conducted observations during the 2016-2021 period. This study uses the Data Envelopment Analysis (DEA) analysis method with secondary data sourced from the financial statements of each BPR and BPRS. The input variables in this study are fixed assets, operating expenses and third-party funds. Meanwhile, the output variables of this research are the financing provided and operating income. The results of the study revealed that the average BPR and BPRS in Sumatra during the 2016 to 2021 period fluctuated. Then, in the CRS and VRS analysis, Lampung and North Sumatra regions have the highest efficiency compared to other regions. Meanwhile, during the Covid-19 pandemic, both BPRs and BPRS in Sumatra experienced a significant decrease in efficiency. This study also analyzes potential improvements to improve programs that cause inefficiencies in the input and output variables. In general, the causes of inefficiency of the two types of banks are operating income and the amount of financing provided. This study also provides recommendations to BPR-BPRS practitioners, regulators and academics as a basis for decision making in achieving optimal efficiency for future.

Bank role in preventing money laundering and cyber security

The purpose of this study is to examine the effect of AML disclosure and cyber security on bank performance and to test whether intellectual capital strengthens or weakens the effect of AML disclosure and cyber security on bank performance. This study uses a sample of banking companies listed on the Indonesia Stock Exchange (IDX). The sample used is 41 banking companies listed on the Indonesian stock exchange. The findings of this study are (1) there is an effect of AML disclosure on Bank Performance. (2) there is no influence of cyber security on bank performance. The limitations of this research do not cover all types of banking in Indonesia, there are still many banking companies in Indonesia but they are not listed. The regulatory implications related to money laundering are the implementation of anti-money laundering programs in the financial services sector could be extended become a disclosure.

Environmental, social, and governance (ESG) and market efficiency of China's commercial banks under market competition.

As the leading financial institutions in China, it is crucial for commercial banks to pay attention to environmental protection (E), social responsibility (S), and corporate governance (G) in order to enhance operational efficiency and to advance the high-quality development of the country's social economy. This research explores the market share of banks as exogenous variables in the profit stage and the market and sustainability stage to investigate the efficiency of 20 listed banks in China over 2016-2020 and innovatively incorporates indicators such as green credit, social giving, executive compensation, and ESG score into the meta-dynamic two-stage SBM under the exogenous variable DEA model.The results demonstrate the following. (1) By integrating market share as an exogenous variable in the model, the efficiency estimate is more precise. (2) In overall, UCBs are the most efficient type of banks, JSCBs are the second, SOCBs are the least efficient. All three types of banks are more efficient in profit stage versus the market and sustainability stage, JSCBs perform best in the profit stage, where SOCBs perform best in the market and sustainability stage. The three different bank types' TGR performance is comparable to their efficiency value performance. (3) SOCBs lead in ESG investment and have the best ESG performance due to their distinct state-owned background. With their ongoing dedication to profit maximization and disregard for social responsibility and sustainable development, JSCBs have the worst ESG performance. (4) Policy recommendations are made based on the study's findings for commercial banks, stakeholders, and regulators to support ESG investment and to bring about long-term sustainable development. Finally, as ESG develops in China, future research can consider longer time scales and larger perspectives to investigate the sustainability efficiency of commercial banks themselves, as well as their role in the local economy and industrial transformation.

The asymmetrical linkage between oil price and banking stability in the MENA region

PurposeThis paper aims to empirically investigate the asymmetrical relationship between changes in oil price and the banking stability of the conventional and Islamic banks in the Middle East and North African (MENA) countries.Design/methodology/approachThis paper measures banking stability with Z-score and probability of default using the Generalized Method of Moment. This paper selects a sample of conventional and Islamic banks operating within the MENA oil-producing states between 2008 and 2016.FindingsThe result of this paper reveals that the banking stability of the two types of banks responds to positive and negative shocks in oil prices. Thus, the stability of conventional banks is slightly better than that of Islamic banks in the region. Consequently, this paper also reveals that bank capitalization improves with the banking stability of the two banking systems in the region.Practical implicationsThe findings of this paper will help the banks in the MENA oil-producing countries with strategies for improving banking stability during the oil price fluctuations and provide the policymakers with possible time for bank capital reform.Originality/valueThis paper explores the impact of the international oil price shocks on Islamic and conventional banks in one of the essential global oil-producing regions. As such, this paper extends the banking stability literature by accounting for the role of oil shock prices on banking distance and the probability of default. To the best of the authors’ knowledge, this is the first investigation of different transmission channels of oil price fluctuations in the region while considering the dual banking system in the hub of Islamic banks.

Response of under-ground bud bank to degradation in an alpine meadows on the Qinghai-Tibet Plateau, China.

Exploring the diversity and formation mechanism of under-ground bud banks is essential for understanding the renewal of plant populations and community succession. However, there are few studies on the response of bud bank size and composition to different degradation gradients in alpine meadows. In view of this, we investigated the size and composition of bud bank under four degradation gradients (non-degraded:ND, lightly degraded:LD, moderately degraded:MD, and heavily degraded:HD) caused by overgrazing in a typical alpine meadow in Tibet, China, using a unit area excavation sampling method, and analyzed the correlation between above-ground plant community composition and bud bank density. Our results showed that: (i) in the ND alpine meadow, rhizome buds were dominant, in the LD, tiller buds were dominant, and in the MD, root-sprouting buds were dominant; (ii) total bud bank and cyperaceae bud density decreased with increasing degradation gradient, the density of leguminosae was insignificant in each degradation gradient, and the density of gramineae and forb were dominant in LD and MD meadows, respectively; (iii) total bud bank density was significantly and positively correlated with total above-ground biomass in the LD gradient, tiller bud density was significantly positively correlated with the species diversity index of above-ground vegetation under the ND gradient, rhizome bud density was significantly and positively correlated with total above-ground biomass in the LD gradient, and root-sprouting density was significantly negatively correlated with total above-ground biomass in ND meadows, but was significantly positively correlated with the species diversity index of the LD gradient. Therefore, our research shows that rhizome buds are more important in ND meadow habitats, tiller buds are more important in LD meadow habitats, and root-sprouting buds are more important in MD meadows. The response of bud banks to degradation gradient varies with different types of bud banks and different functional groups of plants, and the survival strategy of bud banks is of great value for community restoration and regeneration, which should be paid more attention to in subsequent alpine meadow research.

ANALISIS SWOT KESEMPATAN BERKARIR ALUMNI AKADEMI KOMUNITAS DI BADAN USAHA MILIK DESA

The large village funds managed by the village currently allow villages to form Village Owned Enterprises (BUMDes). There are several types of BUMDes, namely Serving, Banking, Renting, Brokering, Trading, Holding, and Contracting. This study aims to conduct a SWOT analysis of career opportunities for alumni of the Community Academy at BUMDes. This research is located in West Aceh District with research on alumni of the West Aceh State Community Academy and BUMDes located in 6 (six) villages within the West Aceh district. This study uses a correlational method where research data collection is done by direct observation and distributing research instruments in the form of a questionnaire. The results of the study indicate that the West Aceh State Community Academy needs to increase cooperation with various parties so that the Alumni of the West Aceh State Community Academy can improve their abilities and be absorbed in BUMDes.

BANKING SYSTEM: HOW BANKING WORKS, TYPES OF BANKING AND HOW TO CHOOSE THE BEST BANK FOR YOU

BANKING SYSTEM: HOW BANKING WORKS, TYPES OF BANKING AND HOW TO CHOOSE THE BEST BANK FOR YOU

Large lending and banks performance. Is there any relationship? Empirical evidence from US banks

AbstractLarge lending in the banking industry has sparked concerns about banks’ efficiency performance, particularly, if it is related to their credit risk, as trade credit, provided by large, creditworthy firms. We provide evidence of a rather neglected issue regarding the impact of large lending on banks’ efficiency using cost and profit stochastic functions. A unique dataset was constructed concerning all US banks collected from the Statistics on Depository Institutions report compiled by the Federal Deposit Insurance Corporation. Our sample contains US banks tracked yearly for the period 2010–2017, creating an unbalanced panel of year observations. An econometric framework based on nested non‐neutral frontiers was developed to estimate the influence and the decomposition of large lending on the three banks’ performance aspects. Moreover, different types of frontiers aiming at the cost and profit sides have been investigated, and the associated elasticities have been calculated. We notice that large lending plays a crucial role in banks’ technical efficiency. Variations among different frontier models, type of bank and size, banks’ ownership structure, and macroeconomic conditions appear to be present. By considering all capital adequacy asset quality management earnings liquidity parameters, we notice that banks’ financial strength affects banks’ efficiency.

The Effect of Fintech Loans on Commercial Bank Margin

This study aims to examine how far competition between commercial banks and fintech firms impacts the margins of commercial banks in Indonesia. Panel data regression analysis using the random-effects model was conducted on the financial data of 84 commercial banks from 2018 to 2021. This study found that the growth of fintech firms did not affect decreasing commercial banks’ margins. However, fintech loans’ growth was found to significantly and negatively effecting commercial banks’ margins, Meaning that fintech loans’ growth decreases the margins of commercial banks in Indonesia. Bank size, non-performing loan (NPL), and capital ratios do not significantly affect commercial banks’ margins. This research ultimately provides input for making fintech interest rate policies and also input for commercial banks to adopt technology so that they do not seem old-fashioned and convoluted. This research only examines the influence of fintech firms on commercial banks, so future research could examine the effect on different types of banks, such as Islamic banks and rural banks.

A Study on Deposits to Working Capital Ratio of Rajkot District Cooperative Bank Ltd.

Majorly 21 types of banks are functioning worldwide. Each and every bank plays important role in growth and development of economy of the nation. This research is focusing on district level banks of Gujarat State. Presently total 42 district level banks are functioning in Gujarat. Amid them, the orientation is taken in account to evaluate the financial performance based on deposits to working capital ratio of the bank. The research is examined for Rajkot District Co-Operative bank ltd for financial year 2013 to 2019. An application of t – test is used to examine the results. It is observed that there is significance difference between the yearly upgradation in deposits to working capital ratio of the bank. The bank has progressively worked for Saurashtra region of Gujarat state.

Organisational Foundations and Performance of Banks in India – A Juxtaposition Study from 1991-92 to 2019-20

Banks are the pivot of development. The way the banking organisations function (Payer) will influence the performance of the banks as well as the target group (The Receiver). There will be always a business relationship between the banks and their customers. This relationship will be solidified and continue to exist for a lifetime and beyond (generation customers). When a bank lives longer, it means better performance by establishing a continuous customer relationship. It is in this context, a study on the organisational foundations to its performance is critical and essential. The present study aims at establishing a temporal relationship between organisational foundations – Vision, Mission, Objectives, Goals / Values, and Strategies and needs to be juxtaposed for a concomitant relationship. The study covers four types of banks in India – Public Sector (PSBs), Private Sector(Pvt_SBs), Foreign Banks(FBs), and All Scheduled Commercial Banks (ASCBs). The organisational foundational variables such as Vision, Mission, Objectives, Goals/ Values, and Strategies are culled out to test the hypothesis of the significance of organisational foundations as explicitly stated will lead to better performance of the banks by type.
 The above hypothesis is tested using ANOVA Fixed Effects Model for all performance variables at the aggregate level. The data are culled out from reports of eighty banks which form a major chunk of the banks in India. The sources of data are bank websites, annual reports, RBI websites, EPWRF data sets, and the like. The data have been tabulated by bank type from 1991-92 to 2019-20 – the post-liberalization period in India.
 The findings of the study are: PSBs although form 56.5% of the total transactions (credit) have mixed levels of performance. Some areas are statistically significant and some are not. The organisational foundational variables have moderate clarity and are in most of the cases, objectives and goals are not specified. The Pvt_SBs have a market share of 35.4% of total transactions that are urban-centric and have been performing well and most of the variables are documented. The FBs which are operating in India are clear about all the organisational variables except strategy. The share of the FBs in Indian urban transactions is 4.19% of the total and all the parameters of performance show the statistically significant result at 1% level. Generally, there will be no autocorrelation effect in the time model tested. This means Foreign Banks make very little or minimum time-oriented errors.
 The paper suggests that all types of banks in India must emulate the FBs to have stronger organisational foundations which in the long run facilitate better competitive performance.

Limiting burrowing activity and overland dispersal of the invasive alien red swamp crayfish Procambarus clarkii by sophisticated design of watercourses

Invasive alien crayfish species pose major ecological and hydrological risks globally. The red swamp crayfish (Procambarus clarkii) is one of the most widespread crayfish species worldwide. Its impacts arise from burrowing activities and lead to mobilization of soil nutrients, water safety risks by instability of dikes and erosion of banks. Increased sediment load demands additional dredging of drainage ditches and canals to ensure their water discharge capacity. Sustainable methods for limiting burrowing in banks and dispersal behaviour of crayfish were not yet available. Therefore, a field study was performed to determine whether the number of burrows and overland movement of crayfish were related to a particular bank type. Burrows were counted in three watercourses during a water-level decline. The number of burrows was significantly lower in natural banks than in non-natural and semi-natural banks. The construction of natural-like banks along watercourses may significantly reduce sediment load, erosion and the collapse of banks by burrowing activities of crayfish. An inclination experiment mimicking various types of terrestrial dispersal barriers elucidated that steepness, soil type and vegetation structure of small embankments near watercourses were significant factors for manipulating overland movement of crayfish. Crayfish were taken out of the water for this purpose and placed on small experimental embankments varying in slope and types of vegetation. The lowest frequencies of upward movement were recorded at inclinations of 20° and 30° on bare sandy soil and short and species-poor grassland substrates. This implies that crayfish crawling out of the water will return to the watercourse when encountering such a dispersal barrier. Therefore, a sophisticated design of embankments along watercourses can be a tool to reduce colonization risk of nearby located, hydrologically isolated water bodies with high nature values.

Modified Radial Malmquist–Luenberger Index Models for Infeasibility: An Application in Productivity Evaluation of Chinese Banks

Data envelopment analysis (DEA) model has been proved as a useful technique to solve the infeasibility problem encountered in the Malmquist–Luenberger index (MLI). This study provides an alternative to avoid infeasibility under dynamic environments. The availability of new models is verified with a numerical example. In detail, we apply modified MLI models to assess the change of productivity for 28 banks in China from 2007 to 2016. The analysis shows the following: (1) Productivities of most banks were progressive before 2014 and declined since the bad influence of the economic decline in 2015. (2) Time is the main factor that causes productivity differences among the four types of banks. (3) The technical change mainly affects the productivity change for all four types of banks. The results also provide useful guidance for financial regulators and bank managers. For example, the variable change during this period implies that the income structure of the banking system in China is slowly changing to some extent, where corresponding strategies are needed. It also conforms to the law that science and technology is the primarily productive force.

Loan and financing diversification and bank stability in dual-banking systems

Our investigation of 46 conventional and 22 Islamic banks from the Gulf Cooperation Council (GCC) countries during 2008–2021 reveals that sectoral diversification effects on stability are nonlinear and different for the two bank types. While Islamic banks’ stability is worsened only by moderate levels of diversification, conventional banks’ stability is enhanced by high levels and impaired by low levels of diversification. Furthermore, diversification acted as a stabilizer during the global financial crisis but exacerbated the adverse effects of the Covid-19 pandemic. Although regulators usually call for bank diversification, our results imply that it can be a double-edged sword.