scholarly journals Effects of banking scale and operating expenses to profit of joint stock commercial banks in Vietnam

2021 ◽  
Vol 5 (2) ◽  
pp. first
Author(s):  
Tâm Thanh Trần ◽  
Lê Vũ Tường Vy
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Operating Cost ◽  
Operating Costs ◽  
Parameter Estimates ◽  
Factors Affecting ◽  
Profit Margins ◽  
The Past ◽  
Business Operations ◽  
The Stability

The operation of the bank is an important economic activity, which has contributed significantly to the development of the national economy over the past years. Therefore, the efficiency in the business operations of joint stock commercial banks is a topic that needs to be addressed, as it directly affects the efficiency in providing capital to businesses, as well as the stability and development of the financial market. Determining the factors affecting the profitability of joint-stock commercial banks will help managers to operate the bank's operations more efficiently. The purpose of this paper is to examine whether the profitability of a joint stock commercial bank in Vietnam is affected by its size and operating costs. All parameter estimates of the regression model are based on regression analysis of the random effects table of REM. Data of the study included 28 joint stock commercial banks in Vietnam for the period of 2012-2019. Empirical research results show that the bank's profit is affected by financial leverage and more particularly, there exists a positive correlation of the bank size and the operating cost on the bank's profit. The fact that larger banks are more competitive has the ability to diversify their asset portfolios, focus on higher profit margins, and spend money to investment, upgrading of service quality and facilities lead to increased operating costs, thereby reducing risks and increasing profits.

MODELING THE INFLUENCE OF THE STRUCTURE AND QUALITY OF ASSETS ON THE PROFITABILITY OF A COMMERCIAL BANK

2021 ◽  
pp. 10-18
Author(s):  
Alena S. Kudriavtseva ◽  
Olga G. Arkadeva
Keyword(s):  
Economic Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Factors Affecting ◽  
Correlation And Regression Analysis ◽  
The Stability ◽  
Classical Economic ◽  
Sound Management

In modern conditions, the methods of classical economic analysis are not enough to solve the problem of bank stability. This requires the development of methods and tools to analyze the current situation in the bank and to develop sound management decisions aimed at ensuring the stability of the bank. The article notes that the analysis of the influence of the structure and quality of assets on the profitability of commercial banks is an important step for assessing the financial position and reliability of a bank, and a method is proposed for constructing a model of the dependence of bank’s profitability on the factors that determine it. The scientific sources were the works of Russian and foreign researchers in the field of modeling and characteristics of the banking system, financial stability of credit institutions, assessment of the creditworthiness of potential borrowers, system organization and information technology. The article uses the methods of economic analysis, differential calculus and mathematical statistics, as well as the achievements of the main scientific schools dealing with the problems of economic and mathematical modeling and economic analysis of banking. In order to determine the most significant economic factors affecting the profitability of commercial banks, generalization of the theoretical, methodological and applied aspects of studies devoted to the study of the influence of the structure and quality of assets on the profitability of commercial banks was carried out, and a correlation and regression analysis was made. The model presented in the article can be used to predict changes in the profitability of Russian commercial banks and to predict promising directions for growth in profit and profitability of the bank.

The distribution, biology, and status of the fishes Campostoma anomalum, Clinostomus elongatus, Notropis photogenis (Cyprinidae), and Fundulus notatus (Cyprinodontidae) in Canada

1982 ◽  
Vol 60 (6) ◽  
pp. 1347-1358 ◽  
Author(s):  
Paul M. McKee ◽  
Bradley J. Parker
Keyword(s):  
Habitat Degradation ◽  
Disjunct Distribution ◽  
Habitat Requirements ◽  
Southern Ontario ◽  
Factors Affecting ◽  
The Past ◽  
Fundulus Notatus ◽  
The Stability ◽  
Thames River ◽  
Campostoma Anomalum

Campostoma anomalum, Clinostomus elongatus, Notropis photogenis, and Fundulus notatus in Canada are confined to a few streams in southern Ontario and are considered rare or threatened in this country. The distribution of C. anomalum shows dramatic expansion in the Thames River drainage over the past decade. Clinostomus elongatus has a disjunct distribution and has apparently been extirpated from several watersheds owing to habitat degradation. Information on the stability of N. photogenis and F. notatus populations is lacking. Both C. anomalum and N. photogenis are rheophilic and occur in relatively high gradient streams. Clinostomus elongatus occurs mainly in cool, clear headwaters. Fundulus notatus is confined to turbid and sluggish or stagnant streams. Factors affecting the vulnerability of these species, based on habitat requirements, are described and measures to conserve their habitats are suggested. Observations on growth, reproduction, feeding, predation, and parasitism are also described.

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 Improvement of Service Quality in the Supply Chain of Commercial Banks—A Case Study in Vietnam

2021 ◽  
Vol 14 (8) ◽  
pp. 357
Author(s):  
Han-Khanh Nguyen ◽  
Thuy-Dung Nguyen
Keyword(s):  
Service Quality ◽  
Commercial Banks ◽  
Three Dimensional ◽  
Sustainable Growth ◽  
Factors Affecting ◽  
Business Operations ◽  
Improve Service Quality

The outbreak of the Covid-19 pandemic caused a serious impact on the business activities of enterprises and households, affecting the operation of banks around the world, especially for capital mobilization from those with savings deposits at commercial banks. In face of the unpredictable developments of the pandemic, many services of banks in Vietnam were also affected, so it has been necessary to make a plan to maintain business operations and respond effectively to these difficulties. In this study, the authors used three research models to form a three-dimensional frame of reference (past, present, and future) to identify, analyze, and evaluate the factors affecting the service quality of commercial banks’ savings deposit mobilization, and to suggest solutions that can minimize risks and improve customer satisfaction for savings deposits at commercial banks, improve service quality to avoid potential long-term risks, as well as maintain sustainable growth and social stability in the future.

scholarly journals INNOVATIVE VECTORS OF BANKING SYSTEM DEVELOPMENT

2019 ◽  
pp. 8-25
Author(s):  
Oleksandr DZYUBLYUK
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Business Models ◽  
Banking System ◽  
Innovation Activity ◽  
Necessary Condition ◽  
Successful Implementation ◽  
Customer Needs ◽  
Theoretical Approaches ◽  
The Stability

Introduction. In a context of increasing competition in the banking sector, the systematic introduction of advanced products and technologies is a key to successful implementation of business models and the effective conquest and maintenance of relevant segments of the financial market. Therefore, the necessary condition for the effective operation of banks is the development and implementation of an appropriate innovation strategy aimed primarily at optimizing management of resource potential, better meeting existing customer needs, as well as the development and technical improvement of services for an adequate response to all new market demands in accordance with economic changes in the globalized environment. Purpose. The purpose of this article is to substantiate and systematize theoretical views on understanding the essence and main directions of development of the banking system on an innovative basis. The formation of an effective management system for innovation activities should become the most important condition for ensuring the efficiency of the work of commercial banks and achieving their competitive advantage both in the domestic market and in the globalized financial space. Results. The basic theoretical approaches to the assessment of the essence of innovation activity of banks are analyzed and systematized, and the necessity of its consideration from institutional positions for assessing the effectiveness of innovations is determined. The main vectors of activation of the innovation process in commercial banks are substantiated: 1) introduction of innovative banking products and improvement of existing services capable of satisfying the broadest possible range of consumers’ needs in the financial market; 2) change of the concept of advancement of banking services to the users, introduction of innovative methods of their sales and the latest marketing strategies; 3) modernization of organizational structures of the bank and its structural subdivisions in order to increase the efficiency of the operation and speed of implementation of management decisions. Conclusions. Banking institutions, when formulating their own strategy, should consider the innovative vector of development as the most important means of ensuring the stability of its functioning, economic growth and competitiveness, since the efficiency of the bank depends on its ability to meet certain customer’ needs. The results of implementation of such innovations may be reflected in expansion of the client base of the bank, optimization of its branch network and organizational structure, increase of the share of the financial market, reduction of transaction costs of banking operations, and also in ensuring the stability of the bank’s functioning in the long run.

scholarly journals Cost Economies for an Airline: An Analysis of Airlines’ Operating Costs

2019 ◽  
Vol 12 (3) ◽  
pp. 1856-1859
Author(s):  
Harendra Nishantha Kariyawasam
Keyword(s):  
Economies Of Scale ◽  
Low Cost ◽  
Operating Cost ◽  
Operating Costs ◽  
Asia Pacific ◽  
Profit Margins ◽  
Cost Structures ◽  
Low Cost Carriers ◽  
Average Operating ◽  
The Cost

This study focuses on analyzing the variables affecting the average operating cost per aircraft movement. Since airlines around the world are operated on thin profit margins and with increasing competition from Low Cost Carriers it will be important for an airline to get a complete understanding about their operating cost structure. The aim of this study is to suggest an airline of actions to reduce their operating cost and will differentiate the cost structures of Low Cost Carriers and Full Service Carriers. This study was conducted for 20 airlines which were operating in Asia Pacific region. Published financial and statistical data were used for analysis and a parametric approach was used. The results of this study do not suggest economies of scale for the airline, which is to have higher number of aircraft to reduce cost.

Impact of Operating Cost Reduction on The Economic Challenges Facing Small-Size Clothing Factories in Saudi Arabia

2020 ◽  
Vol 7 (9) ◽  
pp. 706-730
Author(s):  
Sarah Aldaady ◽  
Amal Basafar
Keyword(s):  
Saudi Arabia ◽  
Cost Reduction ◽  
Manufacturing Industry ◽  
Operating Cost ◽  
Value Added ◽  
Operating Costs ◽  
Factors Affecting ◽  
Trade Law ◽  
Manufacturing Technologies ◽  
The Impact

The clothing manufacturing industry in the Kingdom of Saudi Arabia has faced many challenges at the local and international level. The implementation of the rules and regulations of the World Trade Organization (WTO) and the Kingdom’s Vision 2030 have gained particular interest and operating with minimum costs has become one of the main objectives of small-size clothing factories. The impact of operating cost reduction on economic challenges facing the clothing factories has been studied with the aim to identify the challenges and economic factors affecting operating costs. It was concluded that some of the economic challenges are represented in the high operating cost caused by the application of new taxes, including the value-added tax (VAT), imposition of fees on non-Saudi workers and new amendments to the trade law. Minimizing operating costs through cutting-edge manufacturing technologies were found to be a key solution to ensure factories’ survival and sustainability.

THE ROLE OF DIGITALIZATION IN THE BANKING SECTOR IN INCREASING THE STABILITY OF THE FINANCIAL MARKET

2021 ◽  
Author(s):  
Екатерина Петровна Рамзаева ◽  
Оксана Викторовна Кравченко
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Banking Sector ◽  
Digital Economy ◽  
Banking Systems ◽  
The Stability

В статье рассмотрены основные аспекты развития коммерческих банков в условиях цифровизации экономики. Основной целью данной публикации является определение роли цифровизации как фактора повышения конкурентоспособности банковских систем. The article discusses the main aspects of the development of commercial banks in the digital economy. The main purpose of this publication is to determine the role of digital advertising as a strategy for the competitiveness of banking systems.

scholarly journals Determinants of Lending Interest Rates of Nepalese Commercial Banks

2017 ◽  
pp. 39-59
Author(s):  
Yuga Raj Bhattarai
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Commercial Banks ◽  
Default Risk ◽  
Fixed Effects ◽  
Positive Impact ◽  
Operating Cost ◽  
Bank Lending ◽  
Operating Costs ◽  
Lending Rate

The aim of this study is to investigate the determinants of lending rate of Nepalese commercial banks. The analysis of data was based on a sample of 6 commercial banks observed over the period 6 years (2010 to 2015). The models used in the study were: pooled OLS model, fixed effects model and random effects model. This study has used ‘lending rate’ as dependent variable, while the explanatory variables are: operating cost to total assets ratio, deposit interest rate, profitability (ROA) and default risk. The estimated results of these three regression models reveal that operating costs to total assets ratio, profitability (ROA) and default risk have significant positive impact on the commercial bank lending rate. However, deposit rate has negligible impact on lending interest rate. Thus, this study concludes that the major determinants of commercial banks’ lending rate are: operating costs to total assets ratio, profitability (ROA) and default risk in Nepalese perspectives.Economic Journal of Development Issues Vol. 19 & 20 No. 1-2 (2015) Combined Issue, Page: 39-59

scholarly journals Anti-crisis management of the bank in the conditions of financial market instability

2021 ◽  
Vol 2 (99) ◽  
pp. 40-49
Author(s):  
O. O. Drahan ◽  
I. O. Herasymenko ◽  
N. O. Verniuk
Keyword(s):  
Crisis Management ◽  
Financial Market ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Bank Management ◽  
The Past ◽  
Financial Condition ◽  
Market Instability ◽  
Domestic Banks

The aggravation of problems in the banking system is generally associated with the deterioration of the financial condition of some banks under the COVID-19 pandemic, military aggression in eastern Ukraine and the need to introduce anti-crisis management. The lack of timely and effective crisis management has led to the liquidation of more than forty commercial banks over the past five years. The need for crisis management by domestic banks is exacerbated by the instability of the financial market and requires a review of views on the essence of crisis management. The purpose of the article is to develop theoretical provisions for crisis management in conditions of financial market instability. The theoretical and methodological basis of the study were the scientific works of domestic and foreign scientists. Scientists most often associate anti-crisis bank management with the banking crisis, that is, the state of the entire banking system, and at the same time level other destructive factors. The set of commercial banks that received a net loss was determined: A critical analysis of the definitions of domestic scientists, the concept of "anti-crisis management of the bank" and identified the following groups of approaches: as a process of identifying, preventing and overcoming crisis phenomena; as a process aimed at identifying and preventing crisis situations; as measures taken during the crisis; as measures to rehabilitate the bank; as measures to increase the solvency of the bank; as a component of the bank's financial stability management; as a component of achieving the effective functioning of the bank; as a system for counteracting the bankruptcy of the bank. It is proposed to understand the essence of the category "anti-crisis management of the bank" as a special type of management, interpreted in a narrow and broad sense with the need for specific types and management methods and carried out to diagnose, prevent, neutralize and overcome crisis phenomena, including financial instability market.

Sign in / Sign up

Export Citation Format

Share Document