scholarly journals The Impact of COVID-19 on the Green Banking of Financial Institutions in an Emerging Economy: Implications for the Green Economic Recovery

2021 ◽  
Author(s):  
Abu Bakkar Siddik ◽  
Guang-Wen Zheng
Keyword(s):  
Environmental Management ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Secondary Data ◽  
Policy Implications ◽  
Economic Recovery ◽  
Annual Reports ◽  
The Government ◽  
Solar Powered ◽  
The Impact

This study aims to identify the COVID-19 impact on the green banking activities including green financing of banks and non-bank financial institutions (NBFIs) during the pandemic. Besides, this study also reveals the in-house environmental management of banks and NBFIs during the COVID-19 outbreak. To analyze the impact of the pandemic on green banking activities, secondary data were obtained from the quarterly and annual reports of Bangladesh Bank (BB) on green banking activities, annual reports and websites of the sample banks and NBFIs in Bangladesh for the period 2020–2019. The study utilized descriptive statistics, relative percentage changes, and varying tables and graphs to analyze the obtained secondary data. Consequently, the empirical findings revealed that, compared to the pre-pandemic period, banks’ total green financing rose by 7.26% during the pandemic, while total green financing of NBFIs plummeted by 18.53% during the same period. In addition, the category-wise results indicate that green financing of the private commercial banks (PCBs) decreased by 11% during the COVID-19 pandemic, contrasting the 56.54% increase witnessed by the state-owned commercial banks (SOCBs) during the same period. Interestingly, our findings showed that green financing of foreign-owned commercial banks (FCBs) during the pandemic increased by 78.69% in 2020 compared to 2019. During the same period, BB refinancing scheme for green products/initiatives of banks and NBFIs grew by 76.97%. The results further showed that the PCBs and FCBs’ in-house environmental management expanded during the outbreak except for the number of solar-powered ATM booths, which dropped by 68.25% for PCBs and 9.09% for FCBs. On the other hand, SOCBs’ in-house environmental management grew during the pandemic. Furthermore, the results indicate that the Bangladeshi banks’ automation towards green banking were satisfactory during the pandemic. Therefore, major policy implications for the green economic recovery of the government, BB, and mangers of the banks and financial institutions in emerging economies like Bangladesh were discussed.

scholarly journals Green Finance During the COVID-19 Pandemic and Beyond: Implications for Green Economic Recovery

2021 ◽  
Author(s):  
Abu Bakkar Siddik ◽  
Guang-Wen Zheng
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Negative Impact ◽  
Secondary Data ◽  
Policy Implications ◽  
Economic Recovery ◽  
Annual Reports ◽  
Green Finance ◽  
The Government ◽  
The Impact

The main purpose of study is to identify the impact of COVID-19 pandemic on the green financing of banks and non-bank financial institutions (NBFIs) in an emerging economy such as Bangladesh. Also, this study shows the green banking activities of the banks and NBFIs during the pandemic. To analyze the impact of the pandemic on green financing, secondary data were obtained from the quarterly and annual reports of Bangladesh Bank (BB) on green financing as well as the annual reports and websites of 61 banks and 34 NBFIs in Bangladesh for the period 2021–2019. Subsequently, the study deployed dependent t-test statistics, growth rate (year-on-year), descriptive statistics, relative percentage changes, and varying tables and graphs to analyze the obtained secondary data. The empirical findings revealed that during the COVID-19 pandemic, there was an increase in green finance for all banks and NBFIs compared to before the epidemic, indicating that the pandemic had no negative impact on the total green finance growth of all banks and NBFIs. On the other hand, compared to the pre-pandemic period, bank-wise growth in green financing was higher for state-owned commercial banks (SOCBs), specialized banks (SDBs), and private commercial banks (PCBs) but lower for foreign-owned commercial banks (FCBs) during the COVID-19 epidemic. This suggests that the pandemic does not affect the expansion of green finance by SOCBs, SDBs and PCBs but significantly impacted the growth of green financing by FCBs. Furthermore, the research findings showed that the total outstanding and classified loans within the green finance investment decrease for both banks and NBFIs during the COVID-19 pandemic. The results indicated that the Bangladeshi banks’ level of automation towards green banking were satisfactory during the pandemic. Therefore, major policy implications for the green economic recovery by the government, BB, and managers of the banks and financial institutions in emerging economies like Bangladesh were discussed.

scholarly journals Financial Inclusion in Ethiopia: Is It on the Right Track?

2020 ◽  
Vol 8 (2) ◽  
pp. 28 ◽  
Author(s):  
Tekeste Berhanu Lakew ◽  
Hossein Azadi
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Secondary Data ◽  
Financial Inclusion ◽  
East African ◽  
African Countries ◽  
Regulatory Guidelines ◽  
The Government ◽  
The Right ◽  
The Impact

It is important to evaluate the impact of Ethiopia’s financial inclusion strategy since it has been launched in 2014. Accordingly, this paper assesses the extent to which the target has been met. The main aim of this study is to measure the success or failure of Ethiopia’s financial inclusion in comparison with other countries in East Africa. Using secondary data, this study revealed that Ethiopia’s financial inclusion is not as successful as other East African countries. This study also found that Ethiopians prefer informal saving clubs rather than formal financial organs. This preference, combined with unemployment and low income, is the barrier to the financial inclusion strategy. Based on the findings, identifying and addressing root causes should be done by removing distance, cost, credit, and documentation barriers. Moreover, the findings showed that access to public transit can also expand the reach of formal financial institutions by encouraging more people to physically access financial institutions. This study recommended access to formal financial organs as a core to financial institutions. Access to formal financial organs should be boosted through increasing financial institutions. Educating individuals about their financial circumstances were also recommended so that people can increase their formal saving uptake. This paper also recommended that the government develop regulatory guidelines for the functioning of financial institutions. The main outcome, therefore, is that financial institutions could be more transparent and predictable, reduce costs, and simplify the rules for entering the market.

Factors Influencing Business Angel’s Investment Decision

2019 ◽  
Vol 35 (4) ◽  
Author(s):  
Nguyen Thi Phuong Linh
Keyword(s):  
Investment Decision ◽  
Secondary Data ◽  
Business Environment ◽  
Policy Implications ◽  
Angel Investor ◽  
Factors Influencing ◽  
The Government ◽  
The Impact ◽  
Official Sources ◽  
Provided Examples

The article provided some factors influencing angel’s investment decisions. Using secondary data from official sources, the author analyzed the impact of factors based on two perspectives: the perspective from startup and the perspective from the government and the business environment. The author provided examples of some countries to illustrate each group of factors. Based on that, the article has made suggestions for startups to fully prepare for calling angel investor successfully, and also suggesting some policy implications for the government improving the business environment in order to promote angel investments.

Measuring financial distress of non-bank financial institutions of Bangladesh using Altman’s Z-Score model

2020 ◽  
Vol 13 ◽  
pp. 15-28
Author(s):  
Mohammad Rifat Rahman ◽  
Md. Mufidur Rahman ◽  
Athkia Subat
Keyword(s):  
Financial Institutions ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Vital Role ◽  
Annual Reports ◽  
Z Score ◽  
Factors Affecting ◽  
Financial Soundness ◽  
The Government

Non-bank financial institutions (NBFIs) are recognized as the fundamental of a financial market as they complement the banking institutions. Since 1981, NBFIs have been playing a vital role in the economic growth of Bangladesh. Unfortunately, in the recent years most of the NBFIs have been found financially distressed. However, few NBFIs that were included in our sample claimed themselves as potential companies with sound financial performance though it was highly criticized. Therefore, the motivation for conducting this study is to examine the financial soundness of selected NBFIs using Altman’s Z score (1995). This study involved 20 NBFIs out of 23 Dhaka Stock Exchange (DSE) listed institutions, which were selected based on information availability by considering A, B and Z categories from 2014 to 2018 period. The secondary data were collected from the annual reports of the selected companies over the period. The findings are as follows: 95% of the 20 NBFIs were in distress zone during the study period and only 5% NBFIs were in safe zone during 2017-2018 period. Therefore, the analysis predicted that within the upcoming years a few of the NBFIs will be approaching bankruptcy. Finally, it is suggested that the government, respective regulatory authority, and policy makers to pay an immediate attention on mitigating the factors affecting the financial distress.

scholarly journals Impact of Bancassurance on Financial Performance of Private Commercial Banks in India

2019 ◽  
Vol 8 (6S3) ◽  
pp. 2027-2034
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Secondary Data ◽  
Primary Data ◽  
Best Management ◽  
Regulatory Policies ◽  
Private Banks ◽  
Current Scenario ◽  
The Impact

In order to get competitive advantage, many Financial Institutions are sharing resources in the current scenario. To ward off competition Financial Institutions have tied up with the banks which is termed as bancassurance. The present study is focused on studying the impact of bancassurance on the financial performance of the privately owned commercial banks in India full stop the data was collected from 180 respondents working in 6 private banks of India. With the help of a questionnaire the primary data is collected and the secondary data was collected from the respective Bank sites. It was found that banks should come up with optimum optimal regulatory policies that won't allow them to compromise with the banks performance. And they have to recruit the best management talents so that right decision, smooth handling of the risk can be done by the banks

To list or not to list, that is the question: new evidence from the performance of Vietnamese commercial banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tuan Quoc Le ◽  
Ha Ngan Duong ◽  
Phuong Thanh Nguyen
Keyword(s):  
Initial Public Offering ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Positive Impact ◽  
Policy Implications ◽  
Bank Performance ◽  
Data Set ◽  
Going Public ◽  
Content Type ◽  
The Impact

Purpose This paper aims to investigate the decisions of listing for Vietnamese banks and the impact of listing on bank performance. Design/methodology/approach A longitudinal data set of 30 commercial banks in the period of 2006–2018 with various univariate and multivariate tests is used. Findings This study found that listing is positively associated with bank profitability. The results are consistent even after the control for potential endogeneity problems by propensity score matching methodology and Heckman selection bias models. Further analysis suggests some new alternative channels for the positive impact, namely, the increased quality of information disclosure, technological development and income diversification of commercial banks after listing. Practical implications Hence, this paper provides recommendations and policy implications for regulatory bodies regarding the listing of commercial banks in Vietnam. Originality/value The contributions to the literature are three-folds. First, this study contributes to a strand of literature on the impact of going public [initial public offering (IPO)/listing] of financial institutions on their performance. While the literature on non-financial firm performance post-going public is ample, few have directly considered the IPO/listing of banks and other financial institutions. Second, in further looking at the impact of listing on bank performance, this study also sheds some light on the new possible channels of the effect and provides evidence of new channels. Then, last but not least, the case of Vietnam could possibly yield interesting results for a transitory stock market. From the evidence, the recommendations and policy implications for a listing of Vietnamese banks are provided.

scholarly journals How Government Response to COVID-19 in Bangladesh? An Overview

2021 ◽  
Vol 3 (1-2) ◽  
pp. 92-102
Author(s):  
Ishtiaque Arif ◽  
Mohammad Maksudul Karim ◽  
Md. Siddikur Rahman ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Financial Institutions ◽  
Small Businesses ◽  
Large Population ◽  
Secondary Data ◽  
Government Response ◽  
Industrial Sectors ◽  
Huge Impact ◽  
The Government ◽  
Start Ups ◽  
The Impact

In this 21st century, in front of the whole world it was a very unlikely occurrence of a new pandemic named as Covid – 19. First China and after other countries it advanced its black claw on Bangladesh. Bangladesh's government was aware of the pandemic's predicament and took steps to protect the population, as well as the economy and numerous industrial sectors. Though the government of Bangladesh did its hardest to provide all forms of assistance to the country's economy, the government was unable to successfully control the pandemic due to the country's large population and people's irresponsibility. Due to the significant impact of Covid-19 during this epidemic, various economic and financial sectors were severely harmed, particularly the garment industry sector. Covid – 19 also has an impact on financial institutions such as banks and other financial institutions. Small businesses, start-ups, and other commercial concerns were also severely harmed. The impact of the epidemic on these industries has had a huge impact on all sectors. This research aims to give a comprehensive and useful overview of the observed and potential consequences in the near future. The study relied on secondary data. Information was gathered from numerous media sources, articles, newspapers, policy experts, and other publications in order to better comprehend it. The goal of this research is to describe Bangladesh's pandemic challenges and government response to the worldwide issue.

scholarly journals Impact of Covid-19 Crisis on Micro-Enterprises: A Study of Lunglei Mizoram

2021 ◽  
Vol 6 (1) ◽  
pp. 27-35
Author(s):  
R. Lalngaihsaki ◽  
R. Lalnunthara
Keyword(s):  
Financial Institutions ◽  
Secondary Data ◽  
Primary Data ◽  
Working Capital ◽  
Society Business ◽  
The World ◽  
The Government ◽  
The Impact ◽  
Micro Enterprises ◽  
Structured Questionnaire

Covid-19 pandemic has impacted the society, business and economy around the world. The present study is conducted to understand and analyse the impact of Covid-19 crisis on micro-enterprises in Lunglei, Mizoram. For the purpose of the study, 80 micro-enterprises were selected as sample. Primary data were collected by using the structured questionnaire. Secondary data were collected through journals, books and websites. The study reflected that 80% of the enterprises’ revenue were negatively impacted by the pandemic. 58.75% of the enterprises were facing the problems in making obligatory payments such as salaries, wages, rent, taxes, loans etc due to the Covid-19 crisis. The present study also revealed that 28.75% of the enterprises’ working capital were already negative to run the enterprises if Covid-19 crisis continues. Therefore, the study recommended that the government, banks and financial institutions would take steps to alleviate the impact of Covid-19 crisis on the micro-enterprises by providing low interest loans, relaxation of the loan payment, new schemes for entrepreneurs.

scholarly journals Impact of Interest Rate Spread on Profitability in Nepalese Commercial Banks

2020 ◽  
Vol 10 (1) ◽  
pp. 73-81
Author(s):  
Chitra Bahadur Karki
Keyword(s):  
Interest Rate ◽  
Commercial Banks ◽  
Positive Impact ◽  
Secondary Data ◽  
Annual Reports ◽  
Fiscal Year ◽  
Optimum Level ◽  
Investment Bank ◽  
Interest Rate Spread ◽  
The Impact

The paper aims to examine the relationship between interest rate spread (IRS) and profitability and the impact of IRS on profitability of commercial banks in Nepal. Secondary data have been collected from the annual reports of Nepal investment bank ltd. from fiscal year 2066/67 to 2075/76. A regression technique has been used considering statistical package Minitab 16 version to analyze the data. The study reveals the positive impact of IRS upon the profitability of Nepal investment bank ltd. This study provides sufficient evidences to Nepalese commercial banks about the impact of their IRS on their profitability. The result of this study motivates to Nepalese commercial banks to understand the importance of IRS to raise profitability. Based on the findings, the study is useful to Nepalese commercial banks for making balance between deposit rate and lending rate and maintaining optimum level of interest rate spread to attract both depositors and debtors. This study is also useful to new researchers as a reference for conducting study on similar topic.

scholarly journals Evaluation of the Competitiveness of China’s Commercial Banks Based on the G-CAMELS Evaluation System

2019 ◽  
Vol 11 (6) ◽  
pp. 1791 ◽  
Author(s):  
Fangyuan Guan ◽  
Chuanzhe Liu ◽  
Fangming Xie ◽  
Huiying Chen
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Evaluation System ◽  
Rating System ◽  
Financial Industry ◽  
Entropy Weight ◽  
The Sustainable Development ◽  
Ranking Systems ◽  
The Government ◽  
The Impact

On the basis of the original camel rating system, this study added the green indicator and formed the G-CAMELS evaluation system (An improved rating system based on the CAMELS rating system to evaluate the business operation of financial institutions more comprehensively.) to comprehensively evaluate the competitiveness of commercial banks. It followed China’s current requirements for the sustainable development of commercial banks. In this paper, factor analysis, entropy methods, and dynamic evaluation models are used to obtain the ranking of competitiveness. In addition, according to the same steps as above, the comprehensive ranking based on the CAMELS evaluation system (A comprehensive rating system which is standardized, institutionalized and indexed for business operations of commercial banks and other financial institutions.) was obtained. The two ranking systems were compared. It is found that with the entropy weight method, in the G-CAMELS system, the weight of the green index is quite large, so it magnifies the impact of the financial industry on the environment. Compared with the original CAMELS system, the newly formed system will increase the ranking of state-owned banks and there is no significant change in the ranking of joint-stock banks. In order to improve the competitiveness of banks, state-owned banks should innovate their banking business and continue to implement the green credit policy; joint-stock banks should continue to seize the opportunity of green credit and expand profitability while paying attention to safety. In addition, the government could consider relaxing green credit standards for city commercial banks to ease pressure on banks.

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