scholarly journals An Empirical Study on the Influence of Diversification on the Operating Cost of Commercial Banks

CONVERTER ◽  
2021 ◽  
pp. 757-770
Author(s):  
Jing He, Ke Zou, Xinyi Cai
Keyword(s):  
Strategic Alliances ◽  
Commercial Banks ◽  
Management Strategies ◽  
Operating Cost ◽  
Operating Costs ◽  
Economies Of Scope ◽  
Excessive Competition ◽  
Income Ratio ◽  
The Cost ◽  
The Impact

The majority of the literature has focused on the impact of diversification on bank performance, while the research on the impact of diversification on bank costs is inadequate. Therefore, in this paper we empirically analyzed the impact of diversification on operating costs through a panel regression model, collecting the data of 47 Chinese commercial banks from 2005 to 2015. The empirical results showed that an increase in the non-interest income ratio significantly promoted a decrease in the cost–income ratio, and the robustness tests of different time intervals and different types of banks were consistent. This suggests that diversification effectively reduced the operating costs of banks by means of the sharing of information and equipment, the reduction of asset specificity, and the improvement of operation management synergy. This also indicates that excessive competition costs and the agency costs of diversification were lower. Further analysis showed that the diversification of national banks compared with local banks was more significant in reducing operating costs, and, for the national banks, the effects of economies of scope and scale were stronger. Diversified management strategies for local banks should be carefully promoted through the construction of strategic alliances, mergers and acquisitions, etc.

scholarly journals Operating cost analysis: sources and methods

2019 ◽  
pp. 132-138
Author(s):  
Nadiya Khorunzhak ◽  
Tetyana Portovaras
Keyword(s):  
Cost Optimization ◽  
Operating Cost ◽  
Operating Costs ◽  
Sources Of Information ◽  
Methods Of Analysis ◽  
External Sources ◽  
Internal Sources ◽  
Abc Analysis ◽  
The Cost ◽  
The Impact

Purpose. The aim of the article is identification of requirements and composition of sources of analysis, critical assessment of their information content, as well as emphasis on the application of a systematic approach to the analysis of operating costs and compliance of its method with these criteria. Methodology of research. The empirical research methods are used in the course of the research, in particular: analysis – in order to identify the composition of sources of analysis of operating expenses; generalization – to substantiate the classification of sources of analysis and to formulate recommendations on the choice of methods of analysis, which most fully allow to estimate the operating costs. Findings. The principles of formation of information base of the analysis of operating expenses are substantiated, which will allow to obtain high-quality information on their status and on the basis of the obtained results to predict the activity of the enterprise in the future. The study of the impact of factors on the analysis of operating expenses allowed us to distinguish sources of information into two groups: internal and external. It is determined that internal sources of data for analysis are accounting records, which are formed at enterprises, and which is considered by the authors as a source of analysis of operating expenses. External sources of information the authors consider all possible information resources of an external nature, research of the competitive environment and reporting of subjects with similar types of activity. Originality. The scheme of interconnection sources and analysis results of operations is proposed, which comprehensive utilization, will allow obtaining result analytical information on which management can optimize the cost of compliance with objectives and increase effectiveness of operations. According to modern realities, the most suitable methods of analysis are offered, which allow to adequately assessing the situation of the enterprise in the strategic plane with respect to operating expenses. Practical value. Carrying out an assessment of the operating costs of an enterprise with using various methods and tools of analysis in a complex provides obtaining unbiased data that can be effectively used for the purpose of cost optimization and increase of productivity. Key words: analysis; operating costs; cost optimization; internal sources of information; external sources of information; strategic methods; ABC analysis.

scholarly journals The Effects of Alliance Strategies on the Cost Efficiency of Saudi Commercial Banks

2019 ◽  
Vol 9 (1) ◽  
pp. 84
Author(s):  
Hassan K. Almahdi
Keyword(s):  
Strategic Alliances ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Research Problem ◽  
Ordinary Least Squares ◽  
Regression Equations ◽  
The Public ◽  
The Cost ◽  
The Impact

The Objective of this study is to determine the influence of strategic alliances on the cost efficiency of Saudi banks. For this, we first develop a theoretical framework paving the way for an empirical study that refers to a sample of 09 Saudi banks adopted to verify this relationship. It is therefore, necessary to list the interests of strategic alliances in the banking sector and to question the role of public and foreign as wellas public and private alliance strategies in improving the cost efficiency of Saudi commercial banks.A quantitative approach has been adopted to explore and understand the research problem. We begin by regressing the ordinary least squares efficiency on a series of explanatory variables. The conceptual research model is tested by two different regression equations that will be estimated simultaneously. The first regression, aims to test the impact of the public-foreign alliance on the efficiency of the banks in our sample. As for the second regression, it is carried out to test the impact of the public-private alliance on the latter.The results of this study prove that the creation of an alliance agreement allows Saudi commercial banks to improve their efficiency and constitute for them an opportunity besides an interesting strategic option. Forthermore, public-private and public-foreign alliances are strategies that can improve the efficiency of public banks, increase their competitiveness and reduce their fragility.

Role of employer branding in enhancing the talent management strategies: applied study at commercial banks of Jordan

2021 ◽  
Vol 12 (7) ◽  
pp. 1962-1983
Author(s):  
Atif Badri Al-Qura'an
Keyword(s):  
Commercial Banks ◽  
Response Rate ◽  
Relevant Literature ◽  
Management Strategies ◽  
Talent Management ◽  
Employer Branding ◽  
Applied Study ◽  
The Impact ◽  
Descriptive Method

The main aim of this study is to identify to what extent the managerial leaderships in top, middle, and lower levels of commercial banks at Jordan practice the employer branding dimensions and talent management strategies. Also, it aims to explore the impact of employer branding dimensions on talent management strategies. The researcher relied on analytical-descriptive method to analyze and classify the data to achieve the objectives and to identify the variables of the study. To collect data a questionnaire was developed based on relevant literature and scales, (226) questionnaires were distributed, out of which (187) were returned and analyzed using SPSS (version 19), with response rate (82.7%). The results of the study showed that the relative importance of employer branding dimensions and talent management strategies practices in commercial banks of Jordan was high. Also, the results revealed that there is a positive relationship and significant impact of employer branding dimensions on talent management strategies among managers of commercial banks in Jordan.

scholarly journals Modeling Airline Cost Pass-Through within Regional Aviation Markets

2018 ◽  
Vol 2672 (23) ◽  
pp. 146-157
Author(s):  
Bojun Wang ◽  
Aidan O’Sullivan ◽  
Lynnette Dray ◽  
Andreas W. Schäfer
Keyword(s):  
Empirical Evidence ◽  
Carbon Tax ◽  
Environmental Policies ◽  
Operating Costs ◽  
Fuel Price ◽  
Regional Markets ◽  
Pass Through ◽  
The Cost ◽  
The Impact ◽  
Fuel Costs

Studies assessing the impact of market-based environmental policies in aviation rely on various scenarios of airline cost pass-through, because there is little empirical evidence with respect to the impacts of airline costs on airfares. Instead, the costs effect has been indirectly measured by proxy variables such as distance, fuel price, and aircraft sizes. This paper provides empirical evidence of airline cost pass-through by developing an airfare model that explicitly captures airline operating costs. Using a feasible generalized two-stage least squares (FG2SLS) approach, we obtained coefficients of airline fuel costs per passenger, non-fuel costs per passenger, and non-fuel costs per flight modeling for seven world regions (20 region-pair markets). A comparison of the estimated cost pass-through elasticities conducted across regional markets suggests that airlines may respond to the cost increases differently, depending on the cost types and the markets they operate in. Based on the estimated coefficients, we systematically evaluate the potential impacts of introducing a carbon tax policy within two major regional markets with distinct cost pass-through elasticities.

scholarly journals BANKING INDUSTRY CONCENTRATION AND NET INTEREST MARGINS (NIMS) IN PAKISTAN

2013 ◽  
Vol 15 (2) ◽  
pp. 384-402 ◽  
Author(s):  
Ijaz Hussain
Keyword(s):  
Stock Market ◽  
Commercial Banks ◽  
Banking Sector ◽  
Operating Cost ◽  
Industry Concentration ◽  
Market Development ◽  
Stock Market Development ◽  
Interest Margins ◽  
The Impact ◽  
Bank Soundness

This paper uses bank level data of 26 commercial banks for the period 2001–2010 to explore determinants of net interest margins of commercial banks of Pakistan. Based on results of this study, past net interest margins, bank soundness, operating cost, industry concentration, relative market share, inflation, real depreciation and industrial growth have statistically significant and positive impact while diversification, change in bank size, lagged liquidity, stock market development have dampening effects on net interest margins. However, impact of ownership, GDP and credit market development is statistically insignificant. Our regression results suggest that stock market development as means of alternative source of finance contributes to reduction in net interest margins while the impact of banking sector development on breaking banking cartels and bringing net interest margins down had been insignificant. Exchange rate adjustments, rate of inflation and growth of the industry also cannot be ignored in management of net interest margins. Incentives for bank executives and managers to ensure efficiency in operating costs, reduction in the premium charged for bank soundness, diversification of bank activities and passing on the scale efficiencies to both depositors and borrowers can also play role to bring interest margins down to accelerate investment and growth in the country.

scholarly journals ECONOMIC AND OPERATIONAL ANALYSIS OF MECHANIZED FOREST IMPLEMENTATION

2020 ◽  
Vol 44 ◽  
Author(s):  
Nilton Cesar Fiedler ◽  
Alexandre Arantes de Campos ◽  
Marcos Vinicius Winckler Caldeira ◽  
Julião Soares de Souza Lima ◽  
Antônio Henrique Cordeiro Ramalho ◽  
...  
Keyword(s):  
Operating Cost ◽  
High Energy ◽  
Northern Region ◽  
Production Costs ◽  
Operating Costs ◽  
Operating Cycle ◽  
Cycle Times ◽  
Waste Removal ◽  
The Cost ◽  
Efficiency And Productivity

ABSTRACT Mechanization in forestry implantation demands high energy, time, and high operational and production costs. Thus, studies related to the influence of variables on the efficiency of these activities are essential to reduce costs and optimize operations. The objective of this study was to evaluate the operational and cost performance of mechanized forest implantation operations in Eucalyptus sp. Data were collected from eucalyptus plantations located in the northern region of the state of Espírito Santo, Brazil. The analysis of operational performance determined the distribution of operating times, mechanical availability, degree of utilization, operational efficiency, and productivity of the machines. The cost analysis estimated the operating costs in forestry implantation activities. The forest planting operations were: waste removal, subsoiling, digging with fertilization, planting, chemical weeding, and covering fertilization. According to the results, planting (39.20%) and waste removal (15.99%) represented the longest operating cycle times, the shortest production times (51.48% and 53.64%), and finally the longest maintenance times (32.95% and 29%). Chemical weeding and subsoiling showed the lowest maintenance times (4.64% and 3.47%). The cover fertilization was the operation that presented the highest productivity (2.99 ha he-1), and the removal of residues had the lowest (0.97 ha he-1). The highest costs per effective hour (R$13.57 he-1) and lowest production costs (R$81.59 ha-1) occurred at planting. Subsoiling had the highest production cost (R$112.80 ha-1). The lowest operating cost was obtained in the fertilizing operation. Operating costs had the greatest weight in labor, fuel, and maintenance and repairs.

scholarly journals Penerapan Strategi Cost Efficiency (Efisiensi Biaya) Pada PT Bank Muamalat Indonesia, Tbk. Tahun 2017

2019 ◽  
Vol 1 (1) ◽  
pp. 37-44
Author(s):  
Nidaul Izzah ◽  
Muhammad Zakaria Rachmawan
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Financial Ratios ◽  
Operating Costs ◽  
Bank Performance ◽  
Operating Income ◽  
The Cost

This research discusses about the implementation of the cost efficiency strategy at PT Bank Muamalat Indonesia, Tbk. As for the phenomenon of the problem that the authors observe on the financial ratios report of PT Bank Muamalat Indonesia, Tbk., especially in the BOPO ratio (Operating Costs to Operating Income), it ranks fourth highest out of a total of 13 Islamic Commercial Banks in Indonesia. Based on the authors’ observation, it has implemented the cost efficiency strategy that is also carried out by banks in general. However, there are some obstacles that result in inefficient bank performance, so the BOPO ratio is still high. Therefore, PT Bank Muamalat Indonesia, Tbk. has made several solutions to overcome the obstacles faced.

scholarly journals Factors influencing bank profitability in a developing economy- Panel evidence from Bangladesh

2021 ◽  
Vol 12 (3) ◽  
pp. 0-0
Keyword(s):  
Commercial Banks ◽  
Fixed Effect Model ◽  
Loan Loss ◽  
Data Set ◽  
Bank Profitability ◽  
Loan Loss Provisions ◽  
Efficient Management ◽  
Income Ratio ◽  
Internal And External Factors ◽  
The Cost

The purpose of this paper is to investigate the relationship between bank-specific characteristics and profitability of commercial banks operating in Bangladesh to find the role of both internal and external factors in achieving high profitability. The Fixed Effect Model is built on a balanced panel data set comprising 135 observations of 27 commercial banks over the period 2014-2018. Regression findings reveal that size and capital ratio are significant bank-specific determinants of bank profitability in Bangladesh where the effect of loans ratio is statistically insignificant. Findings also suggest that banks with higher deposits tend to be more profitable and small banks have efficient management. The cost to income ratio and loan loss provisions are statistically insignificant on the performance of banks. On the other hand, macroeconomic variables such as GDP growth have a significant impact on profitability whereas the effects of inflation on profitability are statistically insignificant in some cases.

Sign in / Sign up

Export Citation Format

Share Document