Assessment of Self-Service Banking in Bangladesh: Are Private Commercial Banks One Step Further Building Customer Centric Model or Becoming Money Making Machines in Market Competition?

2017 ◽  
Author(s):  
Akim M. Rahman
Keyword(s):  
Commercial Banks ◽  
Market Competition ◽  
One Step ◽  
Self Service

ISSUES OF DEVELOPMENT AND IMPLEMENTATION OF INNOVATIVE BANKING PRODUCTS

2016 ◽  
Vol 10 (5) ◽  
pp. 69-80
Author(s):  
Анатолий Масленников ◽  
Anatoliy Maslennikov ◽  
Надежда Масленникова ◽  
Nadezhda Maslennikova
Keyword(s):  
Information And Communication Technologies ◽  
Commercial Banks ◽  
Information Technologies ◽  
Great Difficulty ◽  
Banking Services ◽  
Centralized Management ◽  
Decentralized Management ◽  
Bank Employees ◽  
Self Service ◽  
The Individual

Many banks are successfully working in the conditions of growing competition and declining profitability; they are looking for new options to increase the number of their customers, reduce operating costs and improve the efficiency of operations. Medium-sized and large banks, which, as a rule, have numerous and very costly structure, with great difficulty manage to fulfill these requirements. The solution of this problem is possible through the development and introduction of innovative banking products and the provision of modern banking services. Creation of innovative banking products and services –it is the transition from the focusing on the mandatory adherence to applicable regulations, centralized management and the priority of the executive to the orientation on a customer, decentralized management and technology deserted. Creation of innovative banking products and services - is the transition from the orientation to the mandatory adherence to applicable regulations, centralized management and the priority of an executive to orientation on the customer, decentralized management and untended technologies. The main prerequisites for the development of innovative banking products are: individual approach to customers, the development of information and communication technologies, and the active introduction of self-service. Innovative banking products are significantly less time-consuming for the use of bank employees’ work, but functionally more flexible and profitable; the strategy of commercial banks is built based on them. Creation of innovative banking products and services - it is: 1) a definite step in the development of banking technologies, aimed at building a modern strategy of commercial banks; 2) a new organization of interaction with the client in the delivery of banking services. The concept of creation of innovative banking products and services include the following principles: implementation of responsibility decentralization to the level of additional office; development of intra-entrepreneurship; development of customer-oriented organizational structure; decentralization of work leading to the integration of strategic and operational liability; the introduction of material incentives for the individual activity results on a contract basis; development of self-service based on the complex of automated banking devices and information technologies. Implementation of these principles will lead to the direct process of introduction of innovative banking products and services, and focuses the bank employees on meeting customer needs.

scholarly journals Research on the Driving Factors for the Development of Inclusive Finance in Rural Commercial Banks: Market Competition or Government Intervention?

Businesses ◽  
2021 ◽  
Vol 2 (1) ◽  
pp. 1-18
Author(s):  
Chenlu Zhu ◽  
Xiaolin Dong ◽  
Liren Ding ◽  
Chen Lin
Keyword(s):  
Financial Development ◽  
Commercial Banks ◽  
Government Intervention ◽  
Market Competition ◽  
Jiangsu Province ◽  
Local Conditions ◽  
Heterogeneity Test ◽  
Service Coverage ◽  
The Impact

Based on the survey data of 43 rural commercial banks in Jiangsu Province, China, from 2015 to 2018, 14 indicators among 3 dimensions—coverage, business implementation and service quality—were selected to establish the inclusive finance index of rural commercial banks. The impact of market competition and government intervention on the development of the inclusive finance of rural commercial banks and the mechanism were empirically tested. The heterogeneous performance of market competition and government intervention in different market conditions were also thoroughly discussed. The results show that both market competition and government intervention can help reduce the pricing level and broaden the service coverage of rural commercial banks, which can promote the development of inclusive finance. But the role of market competition has a stronger impact than that of government intervention. The heterogeneity test shows that market competition plays a more significant role in the regions with higher levels of market competition and financial development, and in the southern and central Jiangsu Province, where the economy is relatively more developed. However, in the regions with lower levels of market competition and financial development, as well as in the northern Jiangsu Province, with a relatively backward economy, government intervention significantly improves the degree of inclusive finance of rural commercial banks. Finally, we advocate that the roles of market and government should be applied according to local conditions, and the development of the inclusive finance in rural commercial banks needs to be continuously promoted.

Nexus between Price Earnings (P/E) Ratio and Financial Performance of Commercial Banks: Dynamic Panel Evidence from Bangladesh

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Raad Mozib Lalon ◽  
◽  
Tanvir Mahmud ◽  
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Statistical Significance ◽  
Random Effect ◽  
Dynamic Impact ◽  
Net Profit ◽  
One Step ◽  
The One

This paper aims to reveal the relationship between the determinants of financial performance and stock performance measured with reference to the Price-Earnings (P/E) ratio. It examines Panel Data of 10 years covering from 2010 to 2019 of seven Private Commercial Banks (PCBs) of Bangladesh enlisted in the Dhaka Stock Exchange (DSE). Several hypotheses and econometric models have been estimated with the Pooled Ordinary Least Squares (Pooled OLS), Generalized Least Squares (GLS), Fixed-effect, and Random-effect, followed by various diagnostic tests to examine the validity of the models selected for this study. Finally, the One-step Generalized Method of Moments (GMM) method has been adopted. The empirical investigation shows that among the entire set of the variables, only the Net Profit Margin (NPM) ratio has a significant impact on the P/E ratio under Random-effect, GLS, and Pooled OLS. Finally, the model developed for the One-step GMM method has revealed that the inclusion of the Lagged P/E ratio, Leverage, NPM ratio, Net Interest Margin (NIM) ratio, Asset Utilization Ratio, and Non-Performing Loan (NPL) ratio have a statistically significant dynamic impact on the P/E ratios of the PCBs. However, the Liquidity ratio and the Loans to Asset ratio divulged no statistical significance under any of the estimated models.This paper aims to reveal how determinants of financial performance affect the stock performance measured with Price-earnings ratio of the commercial banks enlisted in Dhaka Stock Exchange considering Panel Data of 10 years covering from 2010 to 2019 of seven private commercial banks of Bangladesh listed with DSE. Several hypotheses along with econometric models estimated with the Pooled OLS, GLS, Fixed-effect, Random-effect, and finally, One-step GMM method have been adopted followed by various diagnostic tests to examine the validity of the models selected for this investigation. The empirical investigation shows that, among the entire set of variables only Net Profit Margin ratio has significant impact on the P/E ratio under Random-effect, GLS and Pooled-OLS. Finally, the model developed for One-step GMM method has revealed that including lagged P/E ratio, the Leverage, NPM ratio, NIM ratio, Asset Utilization Ratio, and NPL ratio have statistically significant dynamic impact on the Price-earnings ratios of the commercial banks. However, liquidity ratio and Loans to Asset ratio divulged no statistical significance under any of the aforesaid models.

Structural Equation Analysis of Major Factors of Chinese Commercial Banks Reengineering

2013 ◽  
Vol 709 ◽  
pp. 699-702
Author(s):  
Zheng Rong Han ◽  
Jin Hu Jia ◽  
Xiao Xiao Wang
Keyword(s):  
Information Technology ◽  
Influencing Factors ◽  
Commercial Banks ◽  
Structural Equation ◽  
Market Competition ◽  
Conceptual Schema ◽  
Equation Analysis ◽  
Reconstruction Performance ◽  
Major Factors ◽  
Coordination Degree

On the basis of relative literature studies, this paper puts forward the conceptual schema of major factors of reengineering in Chinese commercial banks and research hypothesis, then proceeds empirical tests. The results show that market competition pressure affects reengineering performance indirectly by client oriented strategy, leading factors and information technology capabilities. Not only information technology capabilities have impact on reconstruction performance directly,but also client oriented strategy, organization and coordination degree influence that indirectly. Despite training and inspiration, information technology capabilities and organization and coordination degree also indirectly affect reengineering performance. Leading factors, together with training and inspiration, affect reengineering performance directly and indirectly. Organization and coordination degree affect reengineering performance directly. Finally, corrected conceptual schema of Chinese commercial banks reengineering influencing factors are got by analyzing the function from influencing factors to reengineering performance.

scholarly journals Banking Competition and Efficiency: The Case of Vietnamese Banking Industry

2020 ◽  
Vol 11 (2) ◽  
pp. 453
Author(s):  
Long Hau Le ◽  
Truong An Duong ◽  
Tan Nghiem Le
Keyword(s):  
Market Power ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Impact ◽  
Positive Impact ◽  
Market Competition ◽  
Annual Reports ◽  
Bank Efficiency ◽  
Empirical Results ◽  
The Impact

This paper is to investigate the impact of competition on the efficiency of the banking industry in Vietnam. Data are collected from the audited annual financial statements and the annual reports of 30 commercial banks during the period of 2010 – 2017. Lerner index is used to measure the market power of bank, while Data Envelope Analysis is employed to estimate the technical efficiency of bank. The impact of competition on the operational efficiency of commercial banks is estimated by Panel Vector Autoregressive model (PVAR). The empirical results seem to indicate that there is a positive impact of competition on the bank efficiency, which is in line with the “quiet-life” hypothesis. However, the statistical test does not confirm this at the traditional levels. Interestingly, the empirical results demonstrate a negative impact of bank efficiency on the market power of bank, and hence market competition. While this result shares the causality dimension with the “efficient structure” hypothesis, it presents an opposite sign on the causality. All these findings could be explained by the real situations and typical characteristics of the economy of Vietnam. This study has important implications for both researchers and practioners.

scholarly journals The Optimized Way of Commercial Bank Management under the Background of Big Data

2020 ◽  
Vol 3 (3) ◽  
Author(s):  
Tailin Zhu
Keyword(s):  
Big Data ◽  
Commercial Banks ◽  
Market Competition ◽  
Business Management ◽  
Core Competitiveness ◽  
Bank Management ◽  
New Development ◽  
Commercial Bank Management ◽  
The Impact

With the advent of the era of big data, the commercial management activities of commercial banks are facing both new challenges and new development opportunities. In the increasingly fierce market competition, commercial banks must pay attention to enhance their core competitiveness, only in this way can they occupy a certain advantage in the fierce market environment. Therefore, commercial banks must accurately grasp the development opportunities brought by big data, and further strengthen the optimization of business management. The author explores and analyzes the impact of big data on commercial banks, and puts forward an effective way for commercial banks to optimize business management in the context of big data, hoping to contribute to the long-term development of commercial banks.

scholarly journals COMPETITIVE CONDITIONS IN BANKING INDUSTRY: AN EMPIRICAL ANALYSIS OF THE CONSOLIDATION, COMPETITION AND CONCENTRATION IN THE INDONESIA BANKING INDUSTRY BETWEEN 2001 AND 2009

2012 ◽  
Vol 14 (2) ◽  
pp. 141-175 ◽  
Author(s):  
Tri Mulyaningsih ◽  
Anne Daly
Keyword(s):  
Mergers And Acquisitions ◽  
Commercial Banks ◽  
Banking Industry ◽  
Market Competition ◽  
Market Concentration ◽  
Competitive Market ◽  
Financial Report ◽  
Conventional View ◽  
The Past ◽  
Banking Market

Few large banks dominate the Indonesia banking industri. Furthermore, in the past ten years, there were a series of mergers and acquisitions in the banking market. The facts cause implications on competition. In this paper, we examine these issues exploiting an unconsolidated annual financial report of all commercial banks between 2001 and 2009. The Panzar-Rose method is employed to examine the banks behavior in competition. Estimates indicate that banks in all three subsamples, large; medium-sized and small are working in a monopolistically competitive market. The analysis of market concentration supports the conventional view that concentration impairs competition. The study shows that the most competitive market was the medium-sized banks because it was least concentrated. In contrast, the large market was more concentrated thus it was less competitive. The consolidation policies driven by the Central Bank reduced market concentration because mergers and acquisitions were mostly conducted by the mediumsized and small banks. Further the improvement of market share distribution and the increasing capacity of the merging banks enhanced competition in the Indonesia banking industry.JEL Classification: D43, G21Keywords: Banking, market competition, market structure

scholarly journals Competitive Conditions in Nepalese Commercial Banks

2021 ◽  
Vol 14 (1) ◽  
pp. 82-95
Author(s):  
Madhusudan Gautam
Keyword(s):  
Portfolio Management ◽  
Commercial Banks ◽  
Market Competition ◽  
Fixed Effect ◽  
Loan Portfolio ◽  
Loan Default ◽  
Lerner Index ◽  
Panel Data Regression ◽  
Data Regression ◽  
Bank Concentration

This study aims to analyze the competitive conditions of commercial banks in Nepal. Competition is measured through structural and non-structural measures of bank competition. Data were taken from 21 commercial banks of Nepal using pooled sampling method, including five commercial banks based on the highest total assets and sixteen commercial banks using random sampling. Concentration ratio, Herfindahl-Hirschman Index, H-statistic and Lerner Index measures were used to assess the competitive position of Nepalese commercial banks. Panel data regression model with bank fixed effect and time fixed effect was employed to measure H-statistic and Lerner index. Findings showed the increasing pattern of capitalization and the decreasing trend of non-performing loan ratio, indicating that Nepalese commercial banks have a low possibility of loan default and, are more financially stable. It also showed the declining trend of bank concentration and HHI, suggesting that Nepalese commercial banks are losing their monopoly power and becoming more competitive in recent years. Competition in the loan market was found higher than deposit market competition. Banks have to pay special attention to loan portfolio management rather than deposit collection strategies. This study concludes that the competitive condition of Nepalese commercial banks is monopolistic. Therefore, appropriate strategies might be taken into action to sell financial products and services competitively.

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