Structure and performance in the Portuguese banking industry in the nineties

The financial crisis that hit Ghana from 2015 to 2018 has raised various issues with respect to the efficiency of banks and the safety of depositors’ in the banking industry. As part of measures to improve the banking sector and also restore customers’ confidence, efficiency and performance analysis in the banking industry has become a hot issue. This is because stakeholders have to detect the underlying causes of inefficiencies within the banking industry. Nonparametric methods such as Data Envelopment Analysis (DEA) have been suggested in the literature as a good measure of banks’ efficiency and performance. Machine learning algorithms have also been viewed as a good tool to estimate various nonparametric and nonlinear problems. This paper presents a combined DEA with three machine learning approaches in evaluating bank efficiency and performance using 444 Ghanaian bank branches, Decision Making Units (DMUs). The results were compared with the corresponding efficiency ratings obtained from the DEA. Finally, the prediction accuracies of the three machine learning algorithm models were compared. The results suggested that the decision tree (DT) and its C5.0 algorithm provided the best predictive model. It had 100% accuracy in predicting the 134 holdout sample dataset (30% banks) and a P value of 0.00. The DT was followed closely by random forest algorithm with a predictive accuracy of 98.5% and a P value of 0.00 and finally the neural network (86.6% accuracy) with a P value 0.66. The study concluded that banks in Ghana can use the result of this study to predict their respective efficiencies. All experiments were performed within a simulation environment and conducted in R studio using R codes.

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Determinants of Bank Profitability

Jinnah Business Review ◽

10.53369/vzis3854 ◽

2021 ◽

Vol 9 (2) ◽

pp. 1-14

Author(s):

Yasmeen Sultan ◽

Keyword(s):

Research Study ◽

Banking Industry ◽

External Factors ◽

Adverse Impact ◽

Financial Intermediaries ◽

Internal Factors ◽

Bank Profitability ◽

Factors Affecting ◽

Price Increases ◽

And Performance

Banks are the most vital financial intermediaries in economy, which has a profitable banking industry; in order to survive undesirable shock as well as subsidize the constancy under the whole economy. However, the main purpose of this research is in the direction of analyzing factors affecting banks’ effectiveness all over Pakistan by means of sets of targeted facts and figures of twenty panels from 2005 to 2015. This study is developed with the help of AOLS technique which is used to examine the effect of different factors such as resources, debts, justice, securities, economic growth, price increases, price decreases, and market capitalization on major profitability signs such as (ROA), (ROE), (ROCE) and (NIM). The experimental consequences analyzed solid facts which stated the following conclusion, i.e., internal factors and external factors create an adverse impact on the level of profitability. An outcome by this research is important to different researchers. This research study proposed that by the concentration & reengineering the internal drivers the banks can improve its profitability and performance.

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Risk Mitigation of Disease Pandemic in the Indonesian Banking Industry: In Response to COVID-19

Lentera Hukum ◽

10.19184/ejlh.v7i3.20146 ◽

2020 ◽

Vol 7 (3) ◽

pp. 245

Author(s):

Nikmah Mentari ◽

Uni Tsulasi Putri

Keyword(s):

Similar Case ◽

Central Government ◽

Banking Industry ◽

Risk Mitigation ◽

Preventive Action ◽

Significant Extent ◽

Critical Function ◽

Specific Regulation ◽

And Performance ◽

Relevant Regulation

As an intermediary institution, the banking industry plays a critical function in the economy. Unpredictable conditions such as disease pandemic, exemplified from the unprecedented COVID-19 outbreak, result in loss to the banking industry due to the weakening of the national economy. In the future, then, the banking industry requires early preventive action for a similar case through specific risk mitigation towards disease pandemic. This paper aims to discuss the urgency of the risk mitigation towards the pandemic in the banking industry, following the risk mitigation scheme in facing the pandemic with its relevant regulation. This paper shows that the pandemic's responsive risk mitigation has become essential to strengthen the banking’s intermediary function and performance during the pandemic. The existing risk mitigation regulation solely relates to the non-performing loan in normal conditions. In the meantime, disease pandemic like COVID-19 is excluded because it is beyond the normal situation. Its adverse impact has leveraged more significant extent due to emergency conditions. In case of a disease pandemic, the bank can soon take early preventive action before the pandemic strikes within the domestic territory without waiting for central government-specific regulation, but it should. However, it remains practiced under the relevant laws. KEYWORDS: Risk Mitigation, Disease Pandemic, COVID-19, Banking Industry, Indonesia.

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Developments in the european banking industry

10.12681/eadd/17559 ◽

2009 ◽

Author(s):

Μαρία-Ελένη Αγοράκη

Keyword(s):

Corporate Governance ◽

Banking Industry ◽

Board Structure ◽

Governance System ◽

Firm Financial Performance ◽

Governance Challenges ◽

The Board Of Directors ◽

European Banking ◽

European Banks ◽

And Performance

Corporate governance has become a leading topic of research, considering its importance as an implement for transparency in financial markets and corporations. On the other hand, the role of the banks is fundamental in any economy that urges for strong corporate governance. Banks are “special” financial institutions posing unique corporate governance challenges. However, very little attention has been paid to the corporate governance of banks. Recent scandals in the financial sector have brought corporate governance at the forefront of academic and supervisory attention. Banks’ versatile role in the economic system has caught regulatory and supervisory interest around the world in an effort to inspire high quality corporate governance standards. Board structure, in the sense of board size and composition, and its impact on corporate performance constitutes an indispensable and, at the same time, prevalent theme of the corporate governance discussion. This thesis examines corporate governance issues in the European banking industry. More specifically, it examines the relationship between board structure and performance, on a sample of 57 large European banks, over the period 2002-2006. The board structure mechanisms applied, are the size of the board of directors and the percentage of non-executives on the board. In addition, this study employs different measures of firm financial performance both market-based and accounting based. Control variables for the bank size and risk as well as for the different corporate governance system are included in the models. The empirical analysis also incorporates a number of bank-specific variables. […]

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MARKET STRUCTURE, CONDUCT AND PERFORMANCE: EVIDENCE FROM INDONESIA BANKING INDUSTRY

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2015.v19.i3.1770 ◽

2017 ◽

Vol 19 (3) ◽

pp. 299 ◽

Cited By ~ 1

Author(s):

Rizky Yudaruddin

Keyword(s):

Market Structure ◽

Banking Industry ◽

Purposive Sampling ◽

And Performance ◽

Efficiency Hypothesis

Kebijakan Arsitektur Perbankan Indonesia (API) sejak tahun 2004 telah berdampak pada meningkatnya konsentrasi bank. Peningkatan konsentrasi bank menimbulkan dua hipotesis yang berlawanan yaitu structure-conduct-performance (SCP) hypothesis dan efficiency hypothesis. Structure Performance Hypothesis di dasarkan pada pendekatan struktural. Pendekatan ini menilai bahwa tingkat profit yang diperoleh bank dipengaruhi oleh struktur pasar dan tingkat kompetisinya. Penurunan tingkat kompetisi dan peningkatan konsenterasi dalam suatu industri akan menyebabkan meningkatnya keuntungan yang diperoleh industri tersebut. Hal ini karena struktur pasar yang terkonsenterasi cenderung menimbulkan perilaku kolusif untuk tujuan memaksimumkan profit. Penelitian ini bertujuan untuk membuktikan, apakah perbankan di Indonesia tahun 2009-2013 mendukung structure-conduct-performance hypothesis atau efficiency hypothesis? Metode pengambilan sampel yang digunakan adalah purposive sampling. Menggunakan data laporan keuangan bank yang bersumber dari Bank Indonesia yang dianalisis dengan regresi data panel dengan bantuan program e-views 8 menemukan bahwa perbankan di Indonesia mendukung efficiency hypothesis. Namun efisiensi bank belum mampu mendorong tercipta praktek bunga rendah sehingga dapat menurunkan daya saing perekonomian Indonesia dalam menghadapi Masyarakat Ekonomi ASEAN (MEA) Tahun 2015.

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