scholarly journals BENEFIT FROM INCOME DIVERSIFICATION OF VIETNAMCOMMERCIAL BANKS

2017 ◽  
Vol 33 (2) ◽  
Author(s):  
Dinh Nguyen
Keyword(s):  
Stock Market ◽  
Commercial Banks ◽  
Business Environment ◽  
Bank Performance ◽  
Income Diversification ◽  
Insolvency Risk ◽  
Empirical Results ◽  
Positive Effects ◽  
Income Generating Activities ◽  
The Relationship

In this study, relationship between non-interest income generating activities (income diversification) and bank performance is investigated by using an unbalanced panel dataset of ten commercial banks listed on Vietnam stock market during the period 2007–2016. Our empirical results indicate that income diversification decrease insolvency risk and enhance performance of listed banks and the relationship between income diversification and bank performance is non-linear. In addition to be affected by factors of income diversification, bank performance is also affected by banks’ characteristics and business environment factors. Bank size, deposit on total liabilities ratio, the first lags risk adjusted returns have positive effects on bank performance while the effect of enforcement index on bank performance is negative. Keywords: Income diversification, bank performance, banks

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

REVENUE DIVERSIFICATION AND BANKING RISK: DOES THE STATE OWNERSHIP MATTER? EVIDENCE FROM AN EMERGING MARKET

2020 ◽  
Vol 15 (04) ◽  
pp. 2050019
Author(s):  
GIANG THI HUONG VUONG ◽  
MANH HUU NGUYEN
Keyword(s):  
Commercial Banks ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
State Ownership ◽  
The State ◽  
Least Square ◽  
Revenue Diversification ◽  
Income Diversification ◽  
Empirical Results ◽  
Banking Risk

Our paper investigates the influence of state ownership on the linkage between revenue diversification and risk of Vietnam domestic commercial banks in the period 2009–2018. By using the Generalized Method of Moments (GMM) estimation for a dynamic panel model, the empirical results indicate that Vietnamese domestic commercial banks with higher state equity are promoted to take more risks in the revenue diversification process. Our findings are robustly checked by a variety of measures of banking risk, income diversification, and state equity. Empirical results from our dynamic model are not only accordant with the previous findings of Batten and Vo [(2016). Bank risk shifting and diversification in an emerging market. Risk Management, 18(4), 217–235] estimated by Ordinary Least Square (OLS) regression on the positive relationship between banking risk and income diversification in Vietnamese domestic commercial banks but also provide new evidence on the tradeoff relationship between risk-return in the operating strategy of Vietnamese state-owned banks in the post-financial crisis. This paper proposes a framework for evaluating the nexus between revenue diversification and risk from the state ownership aspect in other frontier markets.

scholarly journals Examining the relationship between CEO remuneration and performance of major commercial banks in South Africa

2015 ◽  
Vol 13 (1) ◽  
pp. 115-124
Author(s):  
Mahlomola Khumalo ◽  
Andries Masenge
Keyword(s):  
South Africa ◽  
Firm Performance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Bank Performance ◽  
Measurement Instruments ◽  
New Perspective ◽  
And Performance ◽  
The Relationship

The relationship between CEO remuneration and firm performance continues to receive much attention. Although the focus of most of the studies is across sectors, attention is increasingly being directed towards the banking industry. At the same time, controversy around what is deemed excessive remuneration of CEOs in the light of not so impressive firm performance across sectors continues. The 2008 global financial crisis and subsequent problems in the banking industry have increased interest in the dynamics of CEO remuneration and bank performance. This study, which examines the relationship between CEO remuneration and bank performance in South Africa, aims to bring a new perspective to the on-going research and debate. The data used is for the years 2008 – 2013, and a purposive sampling method was employed to select a sample frame that consists of five major commercial banks in South Africa. The results suggest that not all measurement instruments used confirmed that a relationship between CEO remuneration and bank performance existed. In the overall, the results of the study do show that the remuneration of the CEO in the banking industry is such that it does have a significant influence on the performance of a bank.

scholarly journals The Effect of Market Structure on Bank Performance in Central Java

2020 ◽  
Vol 16 (1) ◽  
pp. 112-129
Author(s):  
Imanuel Madea Sakti
Keyword(s):  
Market Structure ◽  
Commercial Banks ◽  
Random Effect ◽  
Random Effect Model ◽  
Bank Performance ◽  
Independent Variables ◽  
Central Java ◽  
Effect Model ◽  
The Relationship ◽  
Positive Effect

Abstract: The research on the Structure-Conduct-Performance (SCP) hypothesis in the banking industry has been done many times, including in Indonesia. However, it still focuses on commercial banks. This research aims to examine the relationship between market structure and bank performance by involving commercial banks and rural banks (Bank Perkreditan Rakyat/BPR) when they are in the same market in the regency/city level. It uses panel data from 565 banks in Central Java: 261 BPR and 304 Commercial Banks, divided into 34 regencies/cities during 2012-2016. Independent variables involve market concentration and market share which is also as moderating variable, and the dependent variable is bank performance. The hypotheses are examined by multiple linear regression with a random effect model. In general, the results support that the market structure has a significant positive effect on bank performance. Another result has found no collusive behavior among dominant banks. Keywords: Structure-Conduct-Performance, Commercial Bank, Rural Bank, Market Structure, Bank Performance Pengaruh Struktur Pasar terhadap Kinerja Bank di Jawa Tengah Abstrak: Penelitian mengenai hipotesis Structure-Conduct-Performance (SCP) pada industri perbankan telah banyak dilakukan, termasuk di Indonesia. Namun, penelitian tersebut hanya berfokus pada bank umum saja. Penelitian ini bertujuan untuk menguji hubungan antara struktur pasar dan kinerja bank dengan melibatkan bank umum dan Bank Perkreditan Rakyat (BPR) ketika berada di pasar yang sama di tingkat kabupaten/kota. Penelitian ini menggunakan data panel terdiri dari 565 bank di Jawa Tengah: 261 BPR dan 304 Bank umum, yang terbagi ke dalam 34 kabupaten/kota selama tahun 2012-2016. Variabel independen yaitu konsentrasi pasar dan pangsa pasar yang sekaligus sebagai variabel moderasi, dan variabel dependen adalah kinerja bank. Hipotesis diuji menggunakan regresi linier berganda dengan random effect model. Secara umum, hasil mendukung bahwa struktur pasar berpengaruh positif signifikan terhadap kinerja bank. Hasil lainnya menunjukkan tidak terdapat perilaku kolusif di antara bank-bank besar. Kata kunci: . Structure-Conduct-Performance, Bank Umum, BPR, Struktur Pasar, Kinerja Bank.

scholarly journals The Effect of Marketing Knowledge Management on Bank Performance Through Fintech Innovations: A Survey Study of Jordanian Commercial Banks

10.28945/4619 ◽  
2020 ◽  
Vol 15 ◽  
pp. 203-225
Author(s):  
Hani H Al-Dmour ◽  
Futon Asfour ◽  
Rand Al-Dmour ◽  
Ahmed Al-Dmour
Keyword(s):  
Knowledge Management ◽  
Commercial Banks ◽  
Management Practices ◽  
Financial Innovation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Bank Performance ◽  
Industrial Sectors ◽  
The Relationship

Aim/Purpose: This study aimed to examine the effect of marketing knowledge management (MKM) on bank performance via the mediating role of the Fintech innovation in Jordanian commercial banks. Background: An extensive number of studies found a significant relationship between Marketing knowledge management and bank performance (e.g., Akroush & Al-Mohammad, 2010; Hou & Chien 2010; Rezaee & Jafari, 2015; Veismoradi et al., 2013). However, there remains a lack of clarity regarding the relationship between marketing knowledge management (MKM) and bank performance (BP). Furthermore, the linkage between MKM and BP is not straightforward but, instead, includes a more complicated relationship. Therefore, it is argued that managing marketing knowledge management assets and capabilities can enhance performance via the role of financial innovation as a mediating factor on commercial banks; to date, however, there is no empirical evidence. Methodology: Based on a literature review, knowledge-based theory, and financial innovation theory, an integrated conceptual framework has been developed to guide the study. A quantitative approach was used, and the data was collected from 336 managers and employees in all 13 Jordanian commercial banks using online and in hand instruments. Structural equation modeling (SEM) was used to analyze and verify the study variables. Contribution: This article contributes to theory by filling a gap in the literature regarding the role of marketing knowledge management assets and capabilities in commercial banks operating in a developing country like Jordan. It empirically examined and validated the role of Fintech innovation as mediators between marketing knowledge management and bank performance Findings: The main findings revealed that marketing knowledge management had a significant favorable influence on bank performance. Fintech innovation acted as partial mediators in this relationship. Recommendations for Practitioners: Commercial banks should be fully aware of the importance of knowledge management practices to enhance their financial innovation and bank performance. They should also consider promoting a culture of practicing knowledge management processes among their managers and employees by motivating and training to promote innovations. Recommendation for Researchers: The result endorsed Fintech innovation’s mediating effect on the relationship between the independent variable, marketing knowledge management (assets and capabilities), and the dependent variable bank performance, which was not addressed before; thus, it needs further validation. Future Research: The current designed research model can be applied and assessed further in other sectors, including banking and industrial sectors across developed and developing countries. It would also be of interest to introduce other variables in the study model that can act as consequences of MKM capabilities, such as financial and non-financial performance measures

scholarly journals Nexus of Market Risk, Dividend Policy and Commercial Banks’ Performance in Sub-Saharan Africa

2020 ◽  
Vol 20 (2) ◽  
pp. 279-297
Author(s):  
Odunayo M. Olarewaju
Keyword(s):  
Commercial Banks ◽  
Dividend Policy ◽  
Banking Sector ◽  
Market Risk ◽  
Agency Cost ◽  
Sub Saharan Africa ◽  
Bank Performance ◽  
Long Run ◽  
Sub Saharan ◽  
The Relationship

Abstract Research Background: The concept of risk is of great importance in any financial system, due to unstable economic situations and fluctuating environmental factors. Like other variables, risk has a significant effect on firms’ returns and profit. Purpose: This study aims at examining the relationship between dividend policy and performance taking cognisance of the uncontrollable risk (market risk). Research methodology: This study was modelled using 250 commercial banks from 30 selected Sub-Saharan African countries in the period 2008 to 2017. The Panel-Vector Error Correction Model was used to estimate the model. Result: From the long run analysis, a long run relationship between dividend policy, agency cost, and bank performance is evident. The disequilibrium will take about 39.5% yearly speed of adjustment to return to a steady state. There is an inverse relationship between Lending interest rate (market risk proxy) with bank performance while there is a positive relationship of foreign exchange rate (market risk proxy) and bank performance in SSA. Novelty: Market risk’s influence on the relationship between dividend policy and bank performance was firstly established. Therefore, it is recommended that the banking sector in SSA should focus more on endogenous factors and review some of their policies as these contribute more significantly to variations in their performance than exogenous factors.

scholarly journals Pengaruh Internet Banking, Risiko Kredit dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2017 - 2019

2020 ◽  
Vol 4 (1) ◽  
pp. 166-177
Author(s):  
Siska Wulandari ◽  
Nunuk Novitasari
Keyword(s):  
Linear Regression ◽  
Credit Risk ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Internet Banking ◽  
Bank Performance ◽  
Company Size ◽  
Use Of Internet ◽  
The Relationship ◽  
Positive Effect

The purpose of this study is to view, analyze, and test the relationship between internet banking and bank performance. The banks used are those listed on the Indonesia Stock Exchange (IDX) in 2019. The method is Multiple Linear Regression by adding two control variables, namely credit risk measured by the NPL ratio and company size measured by the log of total assets with ROA as a measure of the Bank's performance. The findings of this study indicate that internet banking has a positive effect on ROA. The use of internet banking can increase ROA. Commercial banks play a big role in changing (growing) the economy of each country. NPL has a negative and significant effect on ROA. This means that it illustrates an inverse comparison between credit risk and bank performance. If credit risk increases, it will reduce ROA. Company size has a negative and insignificant effect on ROA, it is suspected that the cause is that large assets are not necessarily supported by good management. Company size cannot be used as a guarantee that large companies have good performance, large companies, of course, the costs incurred are also large. resulting in lowering ROA.

Effect of China’s Commercial Banks’ Diversified Revenue on Performance

2013 ◽  
Vol 709 ◽  
pp. 752-763
Author(s):  
Yong Qin Deng ◽  
Zhao Yang Li ◽  
Yuan Yi
Keyword(s):  
Negative Correlation ◽  
Commercial Banks ◽  
Positive Impact ◽  
Financial Data ◽  
Economies Of Scope ◽  
Bank Performance ◽  
Interest Income ◽  
Revenue Structure ◽  
Packet Inspection ◽  
The Relationship

The reasons of China's commercial banks developing diversified revenue are analyzed from the theories of financial innovation, diversity theory and economies of scope. The overall and packet inspection has been done to disclose the relationship between diversified revenue and Chinas bank performance by the financial data of 14 commercial banks during the period of 1999 to 2009. The results show that there is a stable positive correlation between non-interest income and banks' performance for all of the commercial banks and state-owned banks, while the proportion of non-interest income has a positive impact on banks' performance in the joint-stock banks, yet diversified income structure shows a negative correlation with performance. Meanwhile it reveals that the proportion of non-interest income and diversified revenue have a lagged effect on banks' performance. Finally some suggestions are given to optimize Chinas commercial banks revenue structure.

scholarly journals Inflation Thresholds and Stock Market Development: Evidence of the Nonlinear Nexus From an Emerging Economy

2019 ◽  
Vol 11 (1) ◽  
pp. 447
Author(s):  
Noura Abu Asab ◽  
Alaaeddin Al-Tarawneh
Keyword(s):  
Stock Market ◽  
Inflation Rate ◽  
Threshold Model ◽  
Threshold Level ◽  
Market Development ◽  
Threshold Effects ◽  
Stock Market Development ◽  
Estimation Techniques ◽  
Positive Effects ◽  
The Relationship

The paper examines the existence of threshold effects in the relationship between inflation and stock market development in Jordan. It hypothesizes that inflation rate has positive effects on the market development before it reaches a certain level. A controlled threshold model is estimated over annul period from 1980 to 2018. We provide evidence that the nexus between inflation and stock market development is nonlinear and the inflation threshold is detected at 1.6%. The association is found positive before the threshold level but negative beyond it. However, the inflation-stock market development relationship flattens out significantly for inflation above 6%. These findings are robust to alternative estimation techniques.

scholarly journals Analysis of Factors Affecting Performance of Vietnamese Commercial Banks: Testing SCP and ES Hypotheses

2014 ◽  
Vol 219 ◽  
pp. 81-92
Author(s):  
HIỀN PHAN THU ◽  
HẠNH PHAN THỊ MỸ
Keyword(s):  
Sustainable Development ◽  
Market Share ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Market Concentration ◽  
Total Asset ◽  
Bank Performance ◽  
Factors Affecting ◽  
Positive Effects ◽  
Factors Affecting Performance

The research aims at analyzing factors impacting on performance of Vietnamese commercial banks in the years 2005-2012. The authors test SCP (structure-conduct-performance) and ES (efficient structure) paradigms for factors affecting return ratios of banks. The results show that it is market concentration instead of market share that has positive effects on bank performance as shown in their return on average assets (ROAA) and return on average equity assets (ROAE). Additionally, bank size, ownership, ratio of deposit to total asset and inflation rate also produce effects on performance of commercial banks in Vietnam. These findings allow authors to offer some measures to support a sustainable development for Vietnamese commercial banks.

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