Competition in Indian Banking Sector Since 1990s

2017 ◽  
Vol 65 (1-4) ◽  
pp. 67-75
Author(s):  
Atanu Sengupta ◽  
Sanjoy De
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking System ◽  
New Age ◽  
Developed Countries ◽  
Jel Classification ◽  
The Developed Countries ◽  
Wide Usage

In this article, we have estimated the degree of competition in Indian banking sector for the period 1992–2012, as well as in the two sub-periods 1992–2001 and 2002–2012. From our study, we have found that, like the majority of the banking sectors in the developed countries, Indian banking sector also operated under monopolistic competition. Further, the level of competition increased in phase two vis-à-vis phase one for the banking system as a whole as well as for all categories of banks. Liberalisation push, wide usage of technology and introduction of new age private sector banks have enhanced competition in the banking space. JEL Classification: G21, D41, C33

scholarly journals Integration of Islamic banking in the national banking sector: foreign experience

2019 ◽  
Vol 65 ◽  
pp. 09004
Author(s):  
Viktoriia Stoika
Keyword(s):  
Western Europe ◽  
Banking Sector ◽  
Banking System ◽  
Developed Countries ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Cultural Aspects ◽  
Sharia Law ◽  
Banking Institutions ◽  
The Developed Countries

The rules of banking management in Muslim countries are based on the Sharia Law, that is, a set of rules and laws relating to the management of the economy, social, political and cultural aspects of Islamic society. Sharia Law also prohibits the conclusion of immoral transactions and endorses social justice, which is ensured through the distribution of risks and returns, and the implementation of social investment. In the context of economic globalization, this phenomenon is already quite distinguished and is considered a worthy competitor to the traditional banking system. Features of Islamic banking institutions activities become their advantages in comparison with traditional banking institutions. That is why Islamic banks have become active participants in the global financial market, despite the specific nature of their operations and the difficulties of their adaptation to international practice. Islamic banking has spread not only in the developed countries of Western Europe, but also in Central Asia. The study of the process of Islamic banks activities in the financial markets of such countries as Great Britain, Germany, Kazakhstan and Uzbekistan allows us to identify two forms of their functioning: establishment of Islamic windows by banking institutions of these countries and direct entry of banks that originate from Islamic countries. The experience of the above-mentioned countries regarding the integration of Islamic banking into the national financial sector has shown, first of all, the need to develop an appropriate regulatory framework, to form an appropriate infrastructure, to conduct awareness-raising activities, to strengthen international cooperation with investor countries.

scholarly journals Customer Engagement with Social Media Bank Pages with Reference to Facebook

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3089-3095
Keyword(s):  
Social Media ◽  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Banking System ◽  
Customer Engagement ◽  
Public And Private ◽  
Public Sector Banks ◽  
Social Media Platforms ◽  
Public And Private Sector

Indian banking sector is going through a massive transformation day by day with the advancement of Information and communication Technology and impact of digitization in the banking industry. After the core banking system, banks have moved further to reap the benefits of internet and mobile banking. In order to engage more customers anywhere and anytime without visiting the brick and mortar branches, the banks have now introduced the social media banking. Most of the people are already active in different social media platforms, so banks have grabbed that opportunity to reach people easily and provide services through social media. This paper has made an attempt to analyze the engagement of social media customers in different banks including public and private sector with reference to facebook bank page. The results show that most of the banks have presence on popular social media platforms. With respect to the engagement of customer to all facebook posts during the study period, public sector banks are posting more on their respective facebook page but the customers’ likes as well as dislikes are more for SBI, ICICI and AXIS. In case of shares and comments, SBI and PNB have more and are increasing continuously as these two banks post more on their respective facebook pages. But with respect to customer engagement per facebook post during the study period, customers are engaged more with private sector banks. And it can be said that regarding overall customer engagement people are more engaged with private sector over public sector banks.

Corporate Social Responsibility of Public Banking Sector for Sustainable Development

2019 ◽  
pp. 467-488
Author(s):  
Naglaa Fathy El Dessouky
Keyword(s):  
Sustainable Development ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Developed Countries ◽  
The Sustainable Development ◽  
The Public ◽  
The Developed Countries ◽  
Corporate Social

Corporate Social Responsibility (CSR) has become a significant field of studies to stress the importance of the new role of organizations towards the society for sustainable development. Nowadays, an enormous number of authors have been participating in this field to highlight the responsibility of organizations towards the community, society and the natural environment where they are operating. Despite the growing number of researches related to CSR in the developed countries little empirical studies have been devoted to examine CSR concept and practice in the African countries, the MENA region (Middle-East and North Africa), as well as in the Golf countries. This chapter seeks to study CSR concept and practice in the emerging market economies (EMEs). It will mainly focus on the implementations of CSR by the public banking sector. We will investigate the role of the public banking sector existing in an Arab country in comparison to an Asian country to explain and analyze the similarities and differences of CSR activities in both experiences. In this comparative study we will primarily examine Banque Misr, as one of the oldest and largest public bank in Egypt and the Malayan Banking Berhad (trading as Maybank) as the largest public bank in Malaysia. After a meticulous review of literature, we propose a systemic framework to study CSR practices and policy implementations. We illustrated the CSR as a constant process where all variables are interrelated and are affecting each other in a mutual approach. In this systemic framework we advocated to study all significant variables related to CSR practice as: the history/philosophy development, core-values, CSR adopted definition, motives, key players, approaches, stakeholders focus, sectors of intervention and mechanisms of policy implementations. The chapter concludes that common CSR policies exist between the Malaysian and the Egyptian experience. Nevertheless the Malaysian model has formulated an elaborated and further sophisticated CSR public banking program. Meanwhile, the Egyptian model needs to adopt more global oriented CSR public banking policies, in particular to assure the sustainable development requirements.

scholarly journals Competition between conventional and Islamic banks in Malaysia revisited

2020 ◽  
Vol 11 (9) ◽  
pp. 1771-1789 ◽  
Author(s):  
Rafik Harkati ◽  
Syed Musa Alhabshi ◽  
Salina Kassim
Keyword(s):  
Banking Sector ◽  
Monopolistic Competition ◽  
Panel Data Analysis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Perfect Competition ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

Purpose This paper aims to assess the nature of competition between conventional and Islamic banks operating in Malaysia. It is an effort to enrich the existing literature by offering an empirical compromise on the differences in the results of studies related to competition between the two types of banks. Design/methodology/approach Secondary data on all banks operating in Malaysia’s diversified banking sector is collected from the FitchConnect database for the period 2011-2017. A non-structural measure of competition (H-statistic) as informed by Panzar–Rosse is used to measure the competition between conventional and Islamic banks. Panel data analysis techniques are used to estimate H-statistic. Wald test for the market structure of perfect competition/monopoly is used to affirm the validity and consistency of the results. Findings The findings of this study signify that the Malaysian banking sector operated under monopolistic competition during the period of study. The long-run equilibrium condition holds for the Malaysian banking sector. Competition among conventional banks is more intense than that among Islamic banks. Financial reform endeavours of Bank Negara Malaysia (BNM) along with the liberalisation wave of the financial system were successful in promoting competition, rendering the financial system contestable, resilient and dynamic. Practical implications Regulators and policymakers may find the results beneficial in terms of rethinking the number of banks operating in the Islamic sector. The number of banks, however, is not the only determinant of competition in the banking sector. Implications of competition change for stability and risk-taking behaviour of banks should be considered. Originality/value Within the context of Malaysia’s diversified banking system, given the contradictory results reported in studies on competition, this study is an effort to provide a plausible middle ground. It suggests a possible answer as to why competition nature has not changed since the policy change initiatives of BNM, namely, banks merger, expansion of Islamic banking operation scope and liberalisation process.

Economic policy measures for stimulating innovative development

2020 ◽  
pp. 163-176
Author(s):  
Ekaterina I. Shumskaia ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Oil And Gas ◽  
Innovation System ◽  
Developed Countries ◽  
The State ◽  
Full Time ◽  
Innovative Development ◽  
Business Climate ◽  
Innovative Economy

The article presents the results of a study of the state role in the modern process of innovative development. It relies on academic literature and research to evaluate government measures, such as creating the necessary environment, subsidies and various tax incentives. The analysis of the indirect impact on the innovative development of the country is made through the education and training of scientists and researchers, creation of institutions, as well as supporting the structure for the commercialization of innovation. The synthesis of estimates of the effectiveness of government intervention in the innovative development of the economy is used. A comparative analysis revealed the features of the innovation system in Russia: in comparison with developed countries, unique conditions were created for business development through a comprehensive fiscal policy, however, private sector interest in innovation remains low. Therefore, priority directions in development remain measures to improve the business climate, increase the investment attractiveness of the country and promote competition. With a high degree of involvement of domestic universities in R&D, the relationship with the private sector remains poorly developed, which impedes the commercialization of projects under development, which also leads to the leakage of personnel from the country and reduces the competitiveness of domestic enterprises. The state should create the necessary conditions for the development of an innovative economy and actively work to eliminate these barriers, primarily by stimulating business activity and internal competition. In the future, it is necessary to develop sectors that already have serious competitive advantages, such as oil and gas, mining, agriculture, as well as the banking sector, transport, food processing and electricity, and also focus on development choices full-time promising areas with personnel potential.

Modelling the barriers to online banking in the Indian scenario: an ISM approach

2018 ◽  
Vol 13 (3) ◽  
pp. 550-569 ◽  
Author(s):  
Rajesh Katiyar ◽  
Sneha Badola
Keyword(s):  
Banking Sector ◽  
Matrix Multiplication ◽  
Banking System ◽  
Developed Countries ◽  
Online Banking ◽  
Special Focus ◽  
Content Type ◽  
Root Cause ◽  
Indian Scenario ◽  
Developing And Developed Countries

Purpose Online banking, a phenomenon widely adopted and appreciated in developing and developed countries, is becoming an essential part of the lives of people from all walks of life, but there exist a good fraction of customers resisting these services. Therefore, the purpose of this paper is to identify the barriers generating resistance to online banking. The special focus of the paper is to explore resistance among bank customers who already have valid contracts for online banking but still prefer to approach the traditional branches for transactions. Design/methodology/approach To achieve the objective, interpretive structural modelling (ISM) with cross-impact matrix multiplication applied to classification (MICMAC) approach is used to investigate the interrelationships among the barriers to online banking. Findings Online banking, although proven to be a glorious innovation, has still not been adopted by all, and hence, has not met all the expectations of banks and banking sector. The outcome shows that the online illiteracy and online unawareness are the most important barriers and these two are working as the root cause and demand strong attention on part of the banking sector which is working towards the inclusion of customers to online banking. These findings may help the Indian banking sector in identifying the crucial points that affect online banking system in India the most. Originality/value This research explored the interactions among the barriers to online banking in the Indian scenario and revealed significant results through the ISM-based technique.

scholarly journals Financial Performance of Banks in India: A Study of Selected Private Sector Banks

2020 ◽  
Vol 1 (1) ◽  
pp. 45-52
Author(s):  
Vasani Sureshbhai Vithalbhai
Keyword(s):  
Private Sector ◽  
Financial Performance ◽  
Banking Sector ◽  
Good Condition ◽  
Banking System ◽  
Secondary Data ◽  
Jammu And Kashmir ◽  
Significant Difference ◽  
Net Profit ◽  
Need To Evaluate

Purpose: This study aims to evaluate the performance of selected private sector Banks in India. The aim is also to study the profitability performance of these selected banks. Approach/Methodology/Design: Eight private Banks were selected as a sample for the study. The statistical tools employed in the study include Minimum and Maximum Net Profit Ratio, Descriptive Statistics and One-Way ANOVA test for the evaluation of performance of Banks. The period for the study is from 2011-12 to 2018-19, and this study is totally based on secondary data. Findings: The results of the study reveal that there is a significant difference of Net Profit of the selected banks. The financial performance of HDFC Bank is continuously in a good condition due to the high profit earned and the proper management that is employed. The results indicate that Yes Bank is in a deteriorating financial position because of governance issues, false assurance to customers, non-serious investors, non market-led revival in sight, outflow of liquidity, and non-disclosure practices. Axis Bank and ICICI Bank are slowly declining within the market. Jammu and Kashmir Bank suffered losses in the year 2016-17 due to the tune of Rs 16,000 crores during the five months long unrest in the Kashmir valley. Practical Implications: In today’s scenario, most of the banks have more Non-Performing Assets. Due to this condition, many banks go to liquation and merger/acquisition. This paper attempts to examine the current conditions of selected private sector banks in India, assisting in presenting statistical analysis that will be of use to investors as well as management teams of the banks. Originality/value: Nowadays, Banking sector is one of the fastest growing sectors and huge funds are invested in banks. The banking system is becoming more complex and therefore there is a strong need to evaluate the performance of the banks. The originality in this study lies in the attempt to provide up-to-date assessment of eight top banks in India.

scholarly journals Changes in the Relationship Between ICT Use and Economic Development in EU Member States 2010-2016

2019 ◽  
Vol 13 (1-2) ◽  
pp. 91-100
Author(s):  
Miklós Herdon ◽  
Adrián Csordás
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Jel Classification ◽  
Cluster Method ◽  
Member States ◽  
Eu Member States ◽  
Statistical Indicator ◽  
Shared Service ◽  
The Developed Countries ◽  
The Eu

In this study, we examined some ICT indicators of the EU Member States between 2010 and 2016 based on data of the World Bank and Eurostat. We wanted to know, how can the EU Member States be grouped according to these indicators, and which group can Hungary belong to. With the help of international literature reviews, three indicators were chosen. According to these we created three groups (underdeveloped, developing, developed) with the K-Mean cluster method that is classified by their level of development. Interesting changes took place during the period under review. By the end of the analyzed period, six countries lost their “developed” rating among others some founding members. There were also interesting changes in the clusters. The value of some indicators increased more than 40% in some cases, surprisingly, only in one case measured reduction. The proportion of ICT specialists decreased in developing countries (by 1%). The highest growth rate was observed in the developed countries in e-commerce. Because of the high proportion of ICT professionals and the share of e-commerce in the developed cluster we assumed that service would be the dominant sector. The two-sample t-test did not confirm our hypothesis. We supposed the focus in developing countries will be on the industry, due we think the developed countries started to outsource their SSCs (shared service centers) to less developed countries. With the help of a statistical indicator, we confirmed our assumption, but the result not so convincing since the significant level is only 11%. Although we thought that the underdeveloped group of countries was based on agriculture, statistical studies did not support our hypothesis. JEL Classification: O13, O14, O52

Drivers of Bank Solvency, Risk Provisioning and Profitability in the Armenian Banking System

2018 ◽  
Vol 17 (3) ◽  
pp. 307-332
Author(s):  
Suren Pakhchanyan ◽  
Jörg Prokop ◽  
Gor Sahakyan
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Jel Classification ◽  
Regulatory Capital ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
Capital Ratios ◽  
Bank Solvency ◽  
Macroeconomic Determinants ◽  
Loan Growth

The aim of this study is to examine the effects of bank-specific, regulatory and macroeconomic determinants on solvency, risk provisioning, and profitability in the Armenian banking sector. We show that abnormal loan growth is associated with a decrease in regulatory capital ratios, an increase in loan loss provisions, and a reduction in loan portfolio profitability. In addition, we observe an inverse relationship between GDP growth and bank solvency as well as profitability. Regarding regulation, we identify a decrease in regulatory capital ratios as well as a drop in profitability after the implementation of the Basel II Accord. JEL Classification: G32, G21, G28

ADMINISTRATIVE, LEGAL AND SUPERVISORY DETERMINANTS OF GLOBALIZATION OF FINANCIAL MARKETS AND THE BANKING SYSTEM IN POLAND

2015 ◽  
Vol 2 (2) ◽  
pp. 0-0 ◽  
Author(s):  
Sylwia Gwoździewicz ◽  
Dariusz Prokopowicz
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Developed Countries ◽  
Central Banking ◽  
The European Union ◽  
Legal Norms ◽  
Recent Financial Crisis ◽  
Polish Economy

Since the early 90s of the last century, the growing importance of globalization processes in Poland, executing in the field of socio-economic and cultural unification of the community has been observed. Due to the ongoing process of the transformation of the Polish economy, this process was also determined successively increasing integration of financial markets and the development of ICT. Currently operating in Poland, the financial system and the banking sector is one of the most globalized sectors of the economy. This process has been intensified Polish accession to the European Union in 2004. High scale of financial markets globalization in Poland was visualized during the recent financial crisis 2008 years. The process of globalization of financial markets and the banking system in Poland is determined mainly by factors such as administrative and supervisory functions of central banking and supervisory bodies in the financial system and to adapt legal norms to the standards of Western developed countries.

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