scholarly journals The Identification of Green Banking Concept and Bank Liability (A Study of Act Number 10 of 1998 with Extensive Interpretation and Progressive Legal Approach)

2018 ◽  
Vol 2 (1) ◽  
pp. 1-16
Author(s):  
Anitalia Kusumadewi ◽  
Paripurna Paripurna
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Deep Insight ◽  
Legal Research ◽  
Public Companies ◽  
Applicable Law ◽  
Sustainable Finance ◽  
Lender Liability ◽  
Asset Quality

The purposes of this research are to analyze the identification of Green Banking concept in the Act Number 10 of 1998 with extensive interpretation and progressive legal approach and to analyze how banks should be held liable for based on applicable law in view of the extensive interpretation and progressive legal approach. This research is a normative legal research that has analyzed Green Banking concept using Act Number 10 of 1998 concerning Banking, Bank Indonesia Regulation Number 14/15/PBI/2012 concerning Asset Quality of Commercial Banks, Act Number 32 of 2009 concerning Environmental Protection and Management and the Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Application of Sustainable Finance for Financial Services Institutions, Issuer Companies and Public Companies, and then presented as prescriptive research. The result of this study is that banks are reluctant to further examine the AMDAL of financed projects and do not oversee such projects until the termination of the contract. Extensive interpretation and progressive legal approach can be used to provide bank a deep insight regarding the concept of green banking contained in the banking law and the extent to which banks (creditors) are subject to the terms of the lender liability.

Protection of Customers for Management of Digital Banking Services (Study at PT. BRI Unit Boyolali)

2020 ◽  
Vol 3 (2) ◽  
pp. 170
Author(s):  
Herdian Ayu Andreana Beru Tarigan ◽  
Darminto Hartono Paulus
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Industry ◽  
Service Innovation ◽  
Quality Of Services ◽  
Legal Research ◽  
Banking Services ◽  
Services Sector ◽  
Financial Services Sector

<p>Increasing competition in the Indonesian banking industry has encouraged many banks to improve the quality of services to customers by utilizing information technology developments. Service innovation in the use of information technology encourages banks to enter the era of digital banking services. However, the development of digital banking services also increases the risks faced by banks. The purpose of this study is to provide an overview of the implementation of digital banking services and customer protection for risks from digital banking services. The method used in this study is an empirical legal research method. The results of this study indicate that the implementation of digital banking services is regulated by OJK Regulation No.12/POJK.03/2018. The existence of this OJK Regulation is expected by banks as providers of digital banking services to always prioritize risk management in the use of information technology. In addition, this study also shows the existence of 2 types of customer protection for the use of digital banking services, namely preventive protection in the form of legislation related to customer protection in the financial services sector and repressive protection in the form of bank accountability for complaints from customers using digital banking services.</p>

A comparative performance evaluation of banking industry in Bangladesh: CAMEL rating approach

2021 ◽  
Vol 08 (01) ◽  
pp. 2050052
Author(s):  
Md. Rostam Ali ◽  
Md. Rakibuzzaman Ratul ◽  
Rushafa Tasnim Tisha ◽  
Md. Ashikul Islam
Keyword(s):  
Commercial Banks ◽  
The Other ◽  
Comparative Performance ◽  
Other Hand ◽  
Rank 2 ◽  
Composite Rating ◽  
Earning Quality ◽  
Asset Quality ◽  
Rating Model

This study is an attempt to evaluate and compare the performance of State-Owned Commercial Banks (SOCBs) and Private Commercial Banks (PCBs) of Bangladesh. CAMEL rating model has been applied to confess where a bank can be successful and where it has weaknesses. Data have been collected from four SOCBs and eight PCBs for the years 2014–2017. Among the selected SOCBs, it is found that Agrani Bank holds “Satisfactory” position where Sonali Bank holds “Fair” position through the year 2014–2017. On the other hand, Janata bank has improved its position from “Fair” to “Satisfactory” for the year 2016 and 2017. Moreover, Rupali Bank holds ‘Satisfactory’ position only for the year 2017 where this position was “Fair” for the year 2014–2016. On the other hand, it is found that all the selected PCBs hold “Satisfactory” position through the year 2014–2017. Though the composite rating for both types of banks (SOCBs and PCBs) is in “Satisfactory level”, Rank-1 is given to PCBs and Rank-2 is given to SOCBs. CAMEL ratio for “Asset quality” for both types of banks (SOCBs and PCBs) are showing “Dissatisfactory level”. “Earning quality” of SOCBs is showing at a “Marginal level”. Therefore, proper attention should be given to manage the “Asset quality” and SOCBs should increase the “Earning quality”.

The Distressing Effect of Non-Performing Assets to Asset Quality for Commercial Banks in Kenya

2018 ◽  
Vol 3 (6) ◽  
pp. 71-83
Author(s):  
Fred Sporta
Keyword(s):  
Financial Distress ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Risk Level ◽  
Loan Loss ◽  
Risk Levels ◽  
Distress Risk ◽  
Asset Quality

Non-performing Assets is a ratio necessary when identifying financial distress effect on asset quality of financial institutions in Kenya specifically commercial banks in Kenya. Financial distress and asset quality have often been discussed separately in details, but not as satisfactorily this is because of its role of asset quality on distress risk levels of commercial banks. The current research established the distressing effect of non-performing assets on asset quality of Kenyan commercial banks. Nonloan ratio was represented by two variables: Non-performing assets to total loans ratio and Loan loss provision ratio. Thirty-eight Kenyan commercial banks were used for analysis for an eleven year period (2005-2015). Financial statements of commercial banks from CBK was used to extract secondary data for analysis. Results indicated that there a relationship between financial performance and capital adequacy regarding financial distress risk level. A correlation and panel regression analyses were carried out mainly to determine whether there was a relationship of non-performing assets and asset quality of commercial banks in Kenya, the outcome of the study indicated a positive relationship between Non-performing assets and asset quality. This study specifically gives a mindful and sense of reference to the depositor, all banking institutions including the commercial banks and policy-makers to high standards of asset quality by ensuring proper additional guidelines and controls are put in place to guard against non-performing loans.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750006 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Rating System ◽  
Managerial Ability ◽  
Strategic Plans ◽  
Composite Rating ◽  
Asset Quality

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

Determining Risk Factors that Diminish Asset Quality of Indian Commercial Banks

2019 ◽  
pp. 097215091986147 ◽  
Author(s):  
Onkar Shivraj Swami ◽  
B. Nethaji ◽  
Jyoti Prakash Sharma
Keyword(s):  
Risk Factors ◽  
Commercial Banks ◽  
Managerial Efficiency ◽  
Quality Review ◽  
Reserve Bank ◽  
Review Period ◽  
Asset Quality ◽  
Diversified Portfolio ◽  
Reserve Bank Of India

Controlling higher level of non-performing loans (NPLs) has become one of the key objectives of the Reserve Bank of India (RBI), as it may impact banking and macroeconomic stability adversely. In this respect, the present study tries to determine risk factors that diminish asset quality of Indian commercial banks in and around the asset quality review period. Pooled and panel logit model has been employed to examine the determinants of NPLs. We find that banks with lower level of capital, reduced profitability, less diversified portfolio, poor operating and managerial efficiency are at greater risk of having diminished asset quality, whereas the size of the bank is positively linked with the higher level of NPAs. In general, empirical analysis proposes that to identify the bank whose asset quality is likely to deteriorate well in advance, the Regulatory and Supervisory Department of the Central Bank may consider lower level of capital, deteriorating profitability and poor operational efficiency as a leading indicator.

scholarly journals ISSUANCE OF GREEN BOND FOR SUSTAINABLE DEVELOPMENT OF PEATLANDS

2020 ◽  
Vol 21 (2) ◽  
pp. 176-192
Author(s):  
Naradipatya Pratanjana ◽  
Gumanti Oloan Simbolon
Keyword(s):  
Financial Services ◽  
Development Program ◽  
Standard Of Living ◽  
Economic Activities ◽  
Public Companies ◽  
The Public ◽  
Peatland Development ◽  
The Government

Peatlands, with their important role, are in need of great attention, both from the government and also environmentalists. The role of corporations is really needed and is expected to be able to accelerate the improvement of the quality of peatlands, so that the benefits are maintained. Issuance of Green Bond is expected to be able to encourage the achievement of this goal. It is hoped that companies operating in and around the Peatland area will be able to create sustainable Peatland development efforts. The synergy between companies and green investors is expected to be an aspect of improving the economy, both for companies, investors and the public. Companies as publishers have an increasingly large role in maintaining the balance of peatlands. Benefits in the form of incentives from the Financial Services Authority (OJK) will also be obtained by companies that issue green bonds. Investors, especially green investors who are interested in environmental issues will have new investment alternatives. The emergence of a development program initiated by the company, of course, will also have an impact on society, in the form of the withdrawal of a number of workers, as well as the increase in other economic activities as a result of the increase in the standard of living of the community. Keywords: Green Bond, Peatland

scholarly journals Determinants of Credit Infections: Evidence from Banking Sector in an Emerging Economy

2018 ◽  
Vol 6 (2) ◽  
pp. 47-62
Author(s):  
Ayesha Afzal ◽  
Nawazish Mirza ◽  
Azka Mir
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
Lending Institution ◽  
Lending Rates ◽  
Asset Quality ◽  
Panel Estimates ◽  
The Empirical Analysis

This paper applies dynamic panel estimates on 22 commercial banks in Pakistan to determine the factors that affect their asset quality. Consequently, the study tests for a comprehensive array of both bank-specific and macroeconomic variables collected quarterly from 2008 to 2016. The empirical analysis confirms that bad asset quality can be explained by retarded GDP growth and unfavorable movement in exchange and lending rates. Within the bank-specific variables, non-performing loans are the most responsive to loans to the agriculture and energy sectors, level of capitalization, size of the lending institution and quality of management.

scholarly journals Evaluation of the Financial Performance between Traditional Private Commercial Banks and Islamic Banks in Bangladesh

2020 ◽  
Vol 4 (2) ◽  
pp. 1-10
Author(s):  
S. M. Akber ◽  
Asha Dey
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Standard Test ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Test Format ◽  
Average Ratio ◽  
Significant Difference ◽  
Asset Quality

The paper analyzes and evaluated the performance of Islamic banks and Traditional private commercial banks in Bangladesh with a duration from 2015 to 2019. The basis of the analysis used in this paper is CAMEL test.  All the relevant data has collected from the bank’s websites. To measure and compare the performance this paper has used a sample of five Islamic banks and five Traditional private commercial banks. It considered the average ratio of each year.  A standard test format (CAMEL tests) has used to analyze the performance of Islamic and Traditional private commercial banks. To justify the reliability of the data this paper has used t-tests. The outcome of this paper says that apart from the quality of the management significant difference doesn’t exist between the performance of Islamic Banks and Traditional private commercial banks in Bangladesh based on CAMEL test. Considering the quality of the management and asset quality Traditional private commercial banks perform better, but for the capital adequacy and liquidity position Islamic banks perform better in Bangladesh.

scholarly journals IMPACT ON COMPETITIVENESS OF VIETNAMESE COMMERCIAL BANKS: RESEARCH IN HO CHI MINH CITY

2020 ◽  
pp. 07-22 ◽  
Author(s):  
Tran Huu Ai ◽  
Tran Duc Tuan ◽  
Vinh Thanh Bui
Keyword(s):  
Human Resources ◽  
Financial Services ◽  
Commercial Banks ◽  
Development Strategies ◽  
Ho Chi Minh City ◽  
Executive Management ◽  
Factors Affecting ◽  
Management Capacity ◽  
The Impact

This study has been designed to identify the factors affecting the competitive competence of commercial banks and to rank the priority among these factors as applied to bank leaders’ planning and development strategies. According to the evaluation of managers, the impact of the factors affecting the competitive competence of commercial banks is gradually decreasing in the following order: Financial capacity, Quality of banking and financial services, Management capacity of executive management, Human resources, Technology capacity.

scholarly journals The Impact of The Financial Services Authority Regulation on Banking Credit Quality in Improving Indonesia’s Economy During COVID-19 Pandemic: The Critical Thinking Analysis

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Christanto Arief Wahyudi ◽  
Evi Aryati Arbay ◽  
Lusita Astuti Nusantari ◽  
Lusita Astuti Nusantari
Keyword(s):  
Critical Thinking ◽  
Financial Services ◽  
Financial Service Authority ◽  
National Economic ◽  
Business Conditions ◽  
The Stability ◽  
Asset Quality ◽  
The Impact ◽  
Banking Credit

The impact of Covid-19 has impacted the asset quality and profitability of the banks and disrupted economic growth and business conditions globally. In one form of the decline in the economic sector, many members of society, including bank debtors, have lost their livelihoods. The enhancement of non-performing loans experienced by National Banks has resulted in banks losing their ability to generate optimal profit from bank operations so that the bank was always in a healthy, liquid, solvent, and profitable state. The Financial Services Authority issued several Financial Services Authority Regulations during 2020 to make sure that the bank can control bad credit of debtors affected by the Covid-19 outbreak. This study aimed to identify and analyze the impact of Financial Service Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic. This study used a qualitative approach with a critical thinking analysis method. The results of this study concluded that the impact of Financial Services Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic has been shown by the stability of the financial system, which was still well maintained the efforts of the Financial Services Authority to support the national economic recovery policy by Government of Indonesia.

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