Measurement of Vulnerability of Financial Portfolio of Sharia Commercial Banks by Cardona Method

2017 ◽  
Vol 9 (2) ◽  
pp. 109
Author(s):  
Paulina Harun ◽  
Atman Poerwokoesoemo
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Banking Sector ◽  
Banking Industry ◽  
Policy Makers ◽  
Factors Affecting ◽  
Section Data ◽  
Initial Stage ◽  
The Face ◽  
Asset Portfolio

his study aims to: (1) to know and analyze the extent of volatility (vulnerability) of sharia banking industry in Indonesia in the face of competition (2) to know and analyze factors affecting vulnerability of sharia commercial banks; (3) to know and analyze the extent of sustainable development of sharia banking industry to Indonesia's economic development.The research conducted to measure the vulnerability (volatility) of proto folio of syariah bank using observation period 2015, and the data used is cross section data. The research design used in this research is quantitative research, using asset dimension (asset portfolio, liability portfolio, equity portfolio) and stressor (pressure, including: credit risk, market risk, and liquidity risk).The activity plan of this research is: in the initial stage of conducting theoretical study related to the vulnerability related to banking especially BUS; The next step is to determine the asset and stressor dimensions associated with the BUS; Further determine the indicators related to assets and stressors; The next step performs calculations to determine the index of each BUS as well as the dimensions that affect the vulnerabilities faced by each BUS.Target expected outcomes can be generated from this research is: for the object of research (BUS) provide a solution for BUS to deal with and overcome the vulnerabilities encountered and policies that must be done. For policy makers, the results of this study are expected to provide input in decision-making and other policies.Measurement of vulnerability to be performed related to banking operations in the face of competition and the continuity of BUS in Indonesia. The outcomes of this study are expected to be included in Bank Indonesia journals, the selection of this journal is based on studies conducted in the banking sector, especially BUS in Indonesia.

scholarly journals Customer Perception on Bank Service Quality: A Comparative Study between Conventional Commercial Banks and Islamic Commercial Banks in Bangladesh

2016 ◽  
Vol 5 (2) ◽  
pp. 109-124
Author(s):  
Sonia Rezina ◽  
Nur Ahmad ◽  
Farhana Mitu ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Service Quality ◽  
Cyber Security ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Islamic Banks ◽  
Deep Insight ◽  
Policy Makers ◽  
Customer Perception ◽  
Conventional Banks

Customer perception refers to the process by which a customer selects, organizes, and interprets information inputs to create a meaningful picture of the service quality within an organization. In the fast growing banking industry like Bangladesh, every bank is looking forward towards faster growth through providing better service quality than others. However, there are certain challenges started rising in front of the booming banking sector which are needed to be addressed immediately; such as, managing compliance, mitigating fraud/ cyber security, managing hiring decisions etc. It is obvious that, those who will efficiently handle these challenges will certainly lead the market and gain higher customer contentment. The main purpose of this study is to compare the customer perception towards the service Quality offered by Conventional Commercial Banks and Islamic Shariah-based Commercial Banks in Bangladesh through using SERVQUAL instrument. 204 respondents have been randomly selected for the study among them 162 is from Conventional banks and 42 are from Islamic banks. The findings of the research should help the policy makers and regulators in banking industry to have a deep insight towards the different perception of customers and assist in taking effective measures to achieve organizational goal through improving their service Quality.

Consumer behaviour towards willingness to pay for Halal products

2019 ◽  
Vol 121 (2) ◽  
pp. 492-504 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Hafiz Muhammad Faizan ◽  
Shaharyar Ahmed
Keyword(s):  
Willingness To Pay ◽  
Structural Equation ◽  
Quantitative Research ◽  
Reasoned Action ◽  
Raw Material ◽  
Equation Modeling ◽  
Muslim Country ◽  
Policy Makers ◽  
Content Type ◽  
Factors Affecting

PurposeThe purpose of this paper is to empirically analyze the factors affecting Muslim consumers’ willingness to pay (WTP) for Halal food, products and operations by employing theory of reasoned action.Design/methodology/approachThis study has used quantitative research methodology and collected data from 350 questionnaires from a densely populated city of Pakistan. Partial least squares-structural equation modeling was used to analyze the data.FindingsThe results show that the concerns about Halal, religiosity, perception of usefulness of Halal and product ingredients have a significant impact on WTP for Halal foods, while attitude has an insignificant impact on WTP. Moreover, the extent of demand for Halal certification is significantly affected by WTP.Originality/valueThe study highlighted the concerns of the Muslim consumers with respect to Halalness of the products and operations despite living in a Muslim country. It is recommended that the policy makers, food authorities and health institutions should conduct regular inspections of foods, products and producers’/manufacturers’ operations to ensure that all the procedures from manufacturing of the raw material till the finished goods follow Islamic principles to make them completely Halal.

scholarly journals Cost efficiency of the Czech and Slovak banking sectors: an application of the data envelopment analysis

2016 ◽  
Author(s):  
Iveta Palecková
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Cost Efficient ◽  
The Cost ◽  
Variable Returns To Scale

The aim of the paper is to estimate the cost efficiency of the Czech and Slovak commercial banks within the period 2010-2014. For empirical analysis the Data Envelopment Analysis input-oriented model with variable returns to scale is applied on the data of the commercial banks. The intermediation approach is adopted to define the inputs and outputs. The Czech commercial banks are more cost efficient than Slovak commercial banks. The development of average cost efficiency is similar in the Czech and Slovak banking industry. The most efficient Czech banks are Ceská sporitelna and Sberbank in the Czech banking sector, the most efficient Slovak bank is Privatbanka with 100% efficiency.

Market structure-performance hypothesis in Kenyan banking industry

2015 ◽  
Vol 10 (4) ◽  
pp. 697-710 ◽  
Author(s):  
Solomon W. Giorgis Sahile ◽  
Daniel Kipkirong Tarus ◽  
Thomas Kimeli Cheruiyot
Keyword(s):  
Market Structure ◽  
Market Efficiency ◽  
Market Share ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Developing Economies ◽  
Market Concentration ◽  
Bank Performance ◽  
Content Type

Purpose – The purpose of this paper is to test market structure-performance hypothesis in banking industry in Kenya. Specifically, the structure-conduct-performance (SCP) and market efficiency hypotheses were examined to determine how market concentration and efficiency affect bank performance in Kenya. Design/methodology/approach – The study used secondary data of 44 commercial banks operating from 2000 to 2009. Three proxies to measure bank performance were used while market concentration and market share were used as proxies for market structure. Market concentration was measured using two concentration measures; the concentration ratio of the four largest banks (CR4) and Herfindahl-Hirschman Index, while market share was used as a proxy for efficiency. The study made use of generalized least square regression method. Findings – The empirical results confirm that market efficiency hypothesis is a predictor of firm performance in the banking sector in Kenya and rejects the traditional SCP hypothesis. Thus, the results support the view that efficient banks maximize profitability. Practical implications – The study provides insights into the role of efficiency in enhancing profitability in commercial banks in Kenya. It has managerial implication that profitable banks ought to be efficient and dispels the notion of collusive behavior as a precursor for profitability. Originality/value – The paper fills an important gap in the extant literature by proving insights into what determines bank profitability in banking sector in Kenya. Although this area is rich in research, little work has been conducted in the developing economies and in particular no study in the knowledge has addressed this critical issue in Kenya.

scholarly journals Analysis of the Relationship between Credit Risk and Bank Performance of Some Commercial Banks in Ghana

2020 ◽  
Vol 8 (2) ◽  
pp. 34-51
Author(s):  
Joseph Acquah ◽  
Yusif Arthur ◽  
Damianus Kofi Owusu
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Quantitative Research ◽  
Banking Sector ◽  
Sampling Technique ◽  
Capital Adequacy ◽  
Research Approach ◽  
Independent Entity ◽  
The Relationship

This study analysed the relationship between credit risk and bank financial performance of selected commercial banks in Ghana for the period 2010 - 2014, using the banks respective financial statements. The study employed the quantitative research approach. The sample was Ghana Commercial Bank Limited, Zenith Bank Limited, UT Bank and Ecobank Plc. These four banks were selected using stratified random sampling technique. The data were primarily secondary and quantitative in nature. Both descriptive and inferential statistics were used to analyse the data. When the banks were compared, Ghana Commercial Bank Limited was found to be more liquid than Zenith Bank Limited. That of Zenith bank was also higher than UT bank and Ecobank Plc .However, profitability indicators showed that Zenith Bank Limited and Ecobank Plc utilised its assets better than Ghana Commercial Bank Limited and UT bank resulting in the two banks higher scores over the period. The findings show further that Ghana Commercial Bank Limited showed higher ratios for investment in the future while Zenith Bank Limited showed higher ratios of higher dividend immediately. However, Zenith Bank Limited capital adequacy level was far higher than the legal requirement of Banking sector while its counterparts fell slightly below it in terms of average. Based on the main findings and conclusions, it is recommended that Ghana Commercial Bank Limited should find a means of reducing its expenditure, introducing prudent assets management, should be cautious when assisting government in time of economic difficulty, and operate as an independent entity.

scholarly journals The Determinants Of Islamic Retail Banking Adoption In Malaysia

2012 ◽  
Vol 11 (4) ◽  
pp. 437 ◽  
Author(s):  
Seethaletchumy Thambiah ◽  
Shanti Ramanathan ◽  
Mohammad Nurul Huda Mazumder
Keyword(s):  
Empirical Analysis ◽  
Market Share ◽  
Banking Sector ◽  
Retail Banking ◽  
Marketing Strategies ◽  
Relative Advantage ◽  
Policy Makers ◽  
Factors Affecting ◽  
The Past ◽  
Promotional Efforts

This study aims to examine the factors affecting the adoption of Islamic retail banking (IRB) products and services among the banking customers of Malaysia. The market share of Islamic retail banking remains low despite being in operation for the past 28 years. Therefore, an empirical analysis was conducted to study the usage of Islamic retail banking products and services between the urban and rural banking customers of Malaysia. Comparisons were also made on the usage of Islamic deposits and financing schemes between the Muslim and non-Muslim customers. The findings of the study revealed, relative advantage, promotional efforts, complexity, compatibility and awareness on attributes of Islamic retail banking as the significant determinants of the usage of Islamic retail banking products and services. Thus, the findings of this study serves as a valuable guideline to the banking sector and policy makers to devise appropriate marketing strategies to promote Islamic retail banking products and services aggressively among the banking customers of Malaysia.

scholarly journals Factors influencing small, medium and micro-sized enterprises’ borrowing from banks: The case of the Botswana manufacturing sector

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Wilbert R. Mutoko ◽  
Stephen M. Kapunda
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Banking Sector ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Sampling Technique ◽  
Bank Loans ◽  
Factors Influencing ◽  
Research Designs ◽  
Negative Effect

The objective of the study: The main objective of this study is to determine the factors that influence manufacturing small, medium and micro-sized enterprises’ (SMMEs) borrowing from banks.Problem statement: This article examines factors that affect SMMEs’ ability to borrow money from commercial banks. Empirical evidence was collected from manufacturing SMMEs.Motivation for the study: There is a scarcity of studies on factors influencing borrowing among Botswana manufacturing SMMEs.Methodology: The study employed both qualitative and quantitative research designs. The random stratified sampling technique was used to draw a sample of 100 manufacturing SMMEs from a population of 329 registered manufacturing SMMEs in Botswana. Descriptive and inferential statistics were used to analyse the data. Furthermore, multivariate logistic regression estimation was used to obtain the main objective.Main findings: The empirical results showed that longevity in position and annual turnover have positive impact on getting access to bank loans, while marital status has a negative effect on access to bank loans.Practical implications: An understanding of factors influencing borrowing can increase chances of an SMME gaining financing from commercial banks, thus solving the challenge of access to finance.Contributions: The results are significant to SMMEs, policymakers, the banking sector and other researchers. Furthermore, this study increases literature on SMME challenges and financing logistics.

Analysis of Banking Industry by Using Camel Model with Special Emphasis on Selected Indian Public Sector Banks

2016 ◽  
Vol 11 (02) ◽  
Author(s):  
Mamta Shah ◽  
Mahua Dutta
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Sector ◽  
High Rate ◽  
Public Sector Banks ◽  
The Face ◽  
Growing Economy ◽  
Domestic Inflation ◽  
Model Approach

India is among the fastest growing economy in the world. The growth of any economy is largely depending on its financial sector. One of the components of financial sector is the banking sector. The growth of banking industry plays a major role in the development of that economy. If we go to past we can see that over the couple of years the Indian Banking sector has shown a high rate of buoyancy in the face of high domestic inflation, rupee depreciation, and due to fiscal uncertainty. Even our central bank has adopted various measures to stimulate growth and overall development of the sector. The present paper discuss the analysis of banking industry specially our public sector banks by using CAMEL model approach.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750006 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Rating System ◽  
Managerial Ability ◽  
Strategic Plans ◽  
Composite Rating ◽  
Asset Quality

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

scholarly journals Indicators of financial distress condition in Indonesian banking industry

Accounting ◽  
2022 ◽  
Vol 8 (1) ◽  
pp. 27-36
Author(s):  
Abdul Haris ◽  
Imam Ghozali ◽  
Najmudin Najmudin
Keyword(s):  
Data Analysis ◽  
Credit Risk ◽  
Financial Services ◽  
Financial Distress ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Multiple Correlation ◽  
Preventive Actions ◽  
Positive Effect

This study conducts the theme of The Causes of Financial Distress conditions by samples from Indonesian banking sector registered in the Financial Services Authority of Indonesia within the period of 2015-2019. The title of this study: "Indicators of Financial Distress condition in Banking sector in Indonesia” during the period of 2015-2019" with a multiple correlation approach. The purpose of this study is to determine the effect of leverage of Credit Risk, CAR, ROA, and LDR to the Financial Distress conditions. The sample of population in this study are all conventional commercial banks in Indonesia registered in the Financial Services Authority of Indonesia. The number of samples in this study were included 37 commercial banks that their profitabilities were being declined, with a total number 146 observations. The method carried out in determining the sample is “Purposive” sampling. Based on the results of study and data analysis using the panel data method, it shows that capital, credit risk, profitability and liquidity have a positive effect on Financial Distress. The implication of the above conclusion is that it required further research to perform preventive actions to anticipate the measures of financial performance of the Bank, and it is expected to select a larger population of samples and variables that might have not been included in research on banking Financial Distress in Indonesia.

Sign in / Sign up

Export Citation Format

Share Document