scholarly journals An Assessment of Financial Performance and Service Facility Improvement after Merger and Acquisition of Financial Institutions of Nepal

2021 ◽  
Vol 2 (2) ◽  
pp. 16-25
Author(s):  
Ganesh Bajgai ◽  
Radheshyam Pradhan
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Financial Institutions ◽  
Financial Stability ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Public Confidence ◽  
Acquisition Process ◽  
The Impact

Merger and acquisition are one process to integrate the two or more similar types of institutions into one institution. Basically, more banking sectors are gone in merger and acquisition in Nepal. Nepal Rastra Bank has introduced the Merger by law – 2068 BS with the objective of reducing the number of BFIs, enhancing financial stability and promoting public confidence on the banking sector, which encouraged and compelled the banking sectors to proceed the merger and acquisition process for their long-term sustainability. Considering this status, the study was conducted to identify the impact of merger and acquisition on financial performance and service quality of financial institutions of Nepal. The study was conducted covering the category A and B bank which were established after merger and acquisition process. It was a cross-sectional study conducted among the 385 employees of banking sectors. The result shows that the financial performance and service quality of both types of banks (category A and B) was significantly difference in post-merger situation because the p value of t-test was less than .05 significant level.  

Do disclosure and transparency affect bank’s financial performance?

2019 ◽  
Vol 19 (6) ◽  
pp. 1344-1361
Author(s):  
Isaiah Oino
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Financial Institutions ◽  
Content Type ◽  
Loan Portfolios ◽  
Cent Level ◽  
Transparency And Disclosure ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of transparency and disclosure on the financial performance of financial institutions. The emphasis is on assessing transparency and disclosure; auditing and compliance; risk management as indicators of corporate governance; and understanding how these parameters affect bank profitability, liquidity and the quality of loan portfolios. Design/methodology/approach A sample of 20 financial institutions was selected, with ten respondents from each, yielding a total sample size of 200. Principal component analysis (PCA), with inbuilt ability to check for composite reliability, was used to obtain composite indices for the corporate governance indicators as well as the indicators of financial performance, based on a set of questions framed for each institution. Findings The analysis demonstrates that greater disclosure and transparency, improved auditing and compliance and better risk management positively affect the financial performance of financial institutions. In terms of significance, the results show that as the level of disclosure and transparency in managerial affairs increases, the performance of financial institutions – as measured in terms of the quality of loan portfolios, liquidity and profitability – increases by 0.3046, with the effect being statistically significant at the 1 per cent level. Furthermore, as the level of auditing and the degree of compliance with banking regulations increases, the financial performance of banks improves by 0.3309. Research limitations/implications This paper did not consider time series because corporate governance does not change periodically. Practical implications This paper demonstrates the importance of disclosure and transparency in managerial affairs because the performance of financial institutions, as measured in terms of loan portfolios, liquidity and profitability, increases by 0.4 when transparency and disclosure improve, with this effect being statistically significant at the 1 per cent level. Originality/value The use of primary data in assessing the impact of corporate governance on financial performance, instead of secondary data, is the primary novelty of this study. Moreover, PCA is used to assess the weight of the various parameters.

scholarly journals Analysis of Pre and Post Merger and Acquisition Financial Performance of Banks in Pakistan

2014 ◽  
Vol 6 (4) ◽  
pp. 177-190
Author(s):  
Qamar Abbas ◽  
Rashid Saeed . ◽  
Ehsan-Ul-Hassan . ◽  
Muhammad Shahzad Ijaz .
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Merger And Acquisition ◽  
Business Environment ◽  
Study Data ◽  
Financial Statement ◽  
Acquisition Performance ◽  
Significant Difference ◽  
Insignificant Difference ◽  
The Impact

Merger and Acquisition is a strategy adopted by the organizations globally to meet the needs of dynamic business environment. This strategy also has much importance in Pakistan mostly in banking sector. Therefore, the objective of the study is to assess the impact of M&A on the financial performance of banks in Pakistan. The accounting and financial data of 10 banks were used in this study. Data was taken from the financial statement analysis (FSA) by State Bank of Pakistan from the period of 20062011. For the analysis of pre and post Merger and Acquisition performance 15 financial ratios were used in the study. To compare the results Paired sample t-Test was used to measure the significant difference between pre and post M&A financial performance. The overall results show that there is no significant difference in financial performance. It is concluded that there is insignificant difference between pre and post M&A performance of banks in Pakistan.

scholarly journals Impact of Information and Communication Technology on Service Quality of Banking Sector: A Comparative Study of Private and Public Sector Banks in Gwalior and Chambal Region

2017 ◽  
Vol 7 (1) ◽  
pp. 20
Author(s):  
Anil Vashisht
Keyword(s):  
Service Quality ◽  
Banking Sector ◽  
Banking Services ◽  
Public Sector Banks ◽  
Effective Implementation ◽  
Private And Public ◽  
Information And Communication ◽  
The Impact ◽  
Adoption Pattern

<div><p><em>This paper studies the impact of IT in the service quality of banking sector. The purpose of the intended research involves determining bank adoption pattern of electronic media, factors constituting drivers and inhibitors for bank adoption, dimensionality of e-banking services quality as affected by IT, and customer adoption of such services. The study has also highlighted the determinants of service quality are directly influenced by IT and to explore what are the enabling and retarding factors for effective implementation and upsurge of IT system in banks.</em></p></div>

FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD

2021 ◽  
pp. 2150009
Author(s):  
JOÃO JUNGO ◽  
MARA MADALENO ◽  
ANABELA BOTELHO
Keyword(s):  
Credit Risk ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Education ◽  
Financial Inclusion ◽  
The Stability ◽  
The Impact

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

scholarly journals Internet Banking and its Impact on the Service Quality of the Banks in Punjab

2014 ◽  
Vol 5 (2) ◽  
pp. 748-757
Author(s):  
Rajni Bhalla ◽  
Inderpal Singh
Keyword(s):  
Service Quality ◽  
Banking Sector ◽  
Positive Impact ◽  
Secondary Data ◽  
Internet Banking ◽  
Annual Reports ◽  
Primary Data ◽  
Probability Method ◽  
The Impact

The changes in IT sector constantly influencing the performance of banking sector in the world. The emergence of internet banking has changed the way of banks of how to offer the products and services to the customers. In order to survive in the rapidly changing technological environment, the banks are required to adapt such changes and to maintain and improve the services which they are offering to their customers in order to attain the customers satisfaction. Now the term quality does not only include the products but also the services. This paper deals with the internet banking operations and how it affects the service quality of the banks in Punjab. The research is much more of qualitative nature but to prove facts and figures quantitative approach is also used in the paper. The research is descriptive as well as explanatory. In order to arrive at the sample size, non probability method has been used. For the primary data collection a structured questionnaire is used to record the response of various respondents. Secondary data has been collected from annual reports, other published literature of the banks etc. In order to test the impact of internet banking on the service quality of banks seven service quality dimensions model is used. A model with seven dimensions service quality named reliability, assurance, responsiveness, empathy, tangibility, security and communication is used to complete the study. In these seven dimensions 37 variables are covered. For the data analysis the statistical package SPSS 20 is used.  Descriptive statistics is used to analyse the data. The research proves that all the dimensions which are included in the study have a positive impact on the service quality of banks providing internet banking services to their customers in Punjab. The recommendations are also discussed with which the service quality and customers satisfaction can be improved.

scholarly journals Service Quality, Customer Satisfaction and Loyalty: An Empirical Analysis of Banking Sector in Pakistan

2012 ◽  
Vol 4 (4) ◽  
pp. 159-167 ◽  
Author(s):  
Mohsin Zafar ◽  
Aasia Asif . ◽  
Ahmed Imran Hunjra . ◽  
H. Mushtaq Ahmad .
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Banking Services ◽  
Banking Relationships ◽  
Conflict Handling ◽  
The Impact ◽  
Customer Satisfaction And Loyalty

The basic aim of this study is to explore most common constructs for quality of banking services, which influence customer satisfaction and examine the impact of customer satisfaction on customer loyalty in the context of banking relationships. The questionnaire was used to collect the data from 192 valid respondents by convenience sampling method. SPSS was used to analyze the data and AMOS was used to test the model. The results of the study show that there is a positive and significant link between customer satisfaction and constructs of service quality like tangibility, reliability, competence conflict handling and further study inferred that customer satisfaction is positively significant related to customer loyalty.

scholarly journals Assessment of the Relationship between the Banking System on the Financial Security of the State

2021 ◽  
Vol 26 (1) ◽  
pp. 55-63
Author(s):  
Tetiana Kubakh ◽  
◽  
Yevhen Rudenko ◽  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Public Confidence ◽  
Internal Source ◽  
Financial Security ◽  
External Threats ◽  
The Impact ◽  
The Relationship

Annotation. Introduction. Permanent financial crises, currency fluctuations, inflation expectations, intensification of competition, increasing regulatory requirements for bank capital and risk reserves, military-political instability, globalization processes - all this is pressure for a stable financial condition of the banking system. Given the Anglo-Saxon structure of the financial market of Ukraine, banks are in fact the only internal source of capital for individuals and legal entities, which determines the importance of the impact of the banking system on the financial security of the state. In the conditions of dynamism of the modern world the question of preservation of reliability and efficiency of the modern bank becomes more and more actual. The issue of crisis prevention, threats, risks is given considerable attention in world practice, which is due to the need to maintain public confidence in banking institutions. The resilience of the banking system and its members to internal and external threats cannot be ensured without effective tools for control and influence by the regulator. The state is directly responsible for ensuring not only the stable development of the banking services market, but also the effective functioning of all components of the financial system. Timely analysis of indicators of financial stability of the banking system allows to identify the main problems in the activities of domestic banks and identify areas for their elimination, which will ensure the stability of economic development of the state. Purpose. The purpose of the article is to clarify the essence of the concepts of "financial stability of the banking system" and "financial security of the state", as well as to determine the relationship between financial stability of the banking system and financial security of the state. Results. It is determined that assessing the financial stability of the banking system is an important strategic task to ensure the financial security of the state. The interconnectedness and the place of financial stability of the banking system among such categories as stability, security, efficiency and reliability are substantiated. As a result of the calculation, the place of the banking component in the general structure of the financial security of the state was clarified. The analysis allowed to systematize the main threats to the financial security of the state, the source of which are the factors of the banking sector

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

Central bank digital currency: the future of institutional changes in the banking sector

2021 ◽  
Vol 2021 (2) ◽  
pp. 26-48
Author(s):  
Volodymyr MISHCHENKO ◽  
◽  
Svitlana NAUMENKOVA ◽  
Svitlana MISHCHENKO ◽  
◽  
...  
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Banking Sector ◽  
Central Banks ◽  
Credit System ◽  
Bank Supervision ◽  
Bank Of China ◽  
Digital Currency ◽  
Financial Monitoring ◽  
The Impact

The purpose of the article is to reveal the essence and features of the introduction of digital currency of central banks and their impact on the conditions of monetary policy, financial stability, as well as institutional transformations in the development of national banking systems. The study is based on an analysis of projects of issuance and use of digital currencies of the ECB and central banks of leading countries, as well as the results of pilot projects of the National Bank of China on the use of the digital yuan and NBU on the e-hryvnia circulation. It is proved that digital currency of the central bank should be considered as a new dematerialized form of national currency in addition to cash and non-cash forms. Particular attention is paid to the study of the impact of the use of digital currency by central banks on the main parameters of economic policy. The main directions of potential influence of digital currency use on transformation of mechanisms of realization of monetary, budgetary and tax, macroprudential policy, maintenance of financial stability, activization of action of channels of the monetary transmission mechanism, and also on reforming of system of the state financial monitoring and bank supervision are substantiated. It is determined that one of the consequences of the use of digital currency will be the ability to ensure full control over all monetary transactions, which will help reduce the shadow economy and corruption. Structural and logical schemes of centralized and decentralized models of issuance and circulation of digital currency of central bank have been developed, directions of changes in the structure and functions of commercial and central banks, as well as in the structure of the financial and credit system in general have been substantiated.

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