scholarly journals Management and Organization Issues of the Banking Sector in Kyrgyzstan

2017 ◽  
Author(s):  
Celaleddin Serinkan
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
General Information ◽  
Senior Management ◽  
Effective Management ◽  
Short Term ◽  
Measurement Tools ◽  
Staff Recruitment ◽  
And Training

The banking system is an integral part of contemporary economy. There are many reasons behind the success of the banks. One of the most important of these reasons is the development of effective management and organization in the banks. This study has been applied to commercial banks in Kyrgyzstan banking sector. The aim of this study is to identify the problems of commercial banks in Kyrgyzstan and to contribute to new work on their solution. The main issues such as planning, organization, decision making, human resources and training related to management and organizational problems of the enterprises in the study are discussed. Besides the general information about the research, the research method, sampling and measurement tools are given. Findings from the questionnaires were evaluated on the percentage (%) and frequency (f). In the results obtained, it was observed that commercial banks were making short-term plans and staff recruitment was dependent on management. It has been understood that senior management does not resort to employees' opinions when making a decision.

scholarly journals COMPETITION OF TRANSNATIONAL BANKS: MAIN TRENDS AND WAYS OF DEVELOPMENT

2021 ◽  
pp. 151-157
Author(s):  
Надежда Константиновна Савельева ◽  
Татьяна Алексеевна Тимкина
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Competitive Advantages ◽  
International Banking ◽  
Statistical Research ◽  
Cross Border ◽  
The World ◽  
Financial Transactions ◽  
Level Analysis

Статья посвящена проблемам сохранения конкурентных преимуществ коммерческих банков для осуществления финансовых операций на трансграничных рынках. Целью исследования является анализ основных тенденций развития деятельности транснациональных банков в условиях глобализации. Объектом исследования являются мировые лидеры международной банковской сферы. Научная новизна заключается в разработке основных направлений развития банковской системы на международном уровне, результатах анализа опыта лидирующих транснациональных банковских компаний в условиях пандемии The article is devoted to the problems of maintaining the competitive advantages of commercial banks for the implementation of financial transactions in cross-border markets. The aim of the study is to analyze the main trends in the development of the work of transnational banks in the context of globalization. The object of research is the world leaders of the international banking sector. In the process of research, the authors have analyzed theoretical and practical material used in general methods of scientific knowledge and statistical research. Scientific novelty lies in the development of the main directions for the development of the banking system at the international level, analysis of the experience of leading transnational banking companies in the context of a pandemic.

scholarly journals Revenue Diversification, Risk and Bank Performance of Vietnamese Commercial Banks

2019 ◽  
Vol 12 (3) ◽  
pp. 138 ◽  
Author(s):  
Ngoc Nguyen
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Transformation Model ◽  
Annual Reports ◽  
Bank Performance ◽  
Method Of Moment ◽  
Revenue Diversification ◽  
Interest Income ◽  
Using Data

In the future, when the process of economic integration in the banking sector is more powerful, and competitive, diversifying revenue is an inevitable and objective trend to help the banks increase profits, minimize risks and improve their competitive position in the system. The research is on the relationship between revenue diversification, risk and bank performance using data from audited financial statements and annual reports of 26 commercial banks listed and unlisted in Vietnam during the period 2010–2018. The research method uses Generalized Method of Moment (GMM) modeling techniques to solve endogenous problems, variance and autocorrelation in the research model. Research results show that diversification negatively impacts profitability and the higher the diversification, the higher the risk of commercial banks. However, the more diversified listed banks, the more increased the bank’s stability. The banks show the weakness and lack of experience of the banking system in developing a reasonable profit transformation model. The revenue diversification of banks is currently passive and moves slowly. Interest income is still the motivation of bank development, boosting profit growth. Growth, as well as the contribution from service activities, is not commensurate with potentials; although there are many positive points, they are not enough to cover risks from net interest income activities.

scholarly journals Performance evaluation using the CAMELS model: A comparative study of local commercial banks in Qatar and Kuwait

2021 ◽  
Vol 16 (3) ◽  
pp. 152-165
Author(s):  
Rawan Abuzarqa ◽  
◽  
Tibor Tarnóczi ◽  
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Financial Analysis ◽  
Banking System ◽  
Capital Adequacy ◽  
Accounting Data ◽  
Study Approach ◽  
Analysis Process ◽  
Two Factors ◽  
Asset Quality

Nowadays, the banking system is undergoing significant changes. Digitalization that appears in Industry 4.0 also pioneers in the banking system, so we can also talk about Bank 4.0 as a new development direction. In this shift in the digital age, it becomes even more critical to examine the performance of banks. The case study approach was based on an attempt to diagnose the performance of a sample of local commercial banks in Qatar and Kuwait based on their financial statements for the period 2013–2017, and approve the existing accounting data as sources for the financial analysis process, by using essential financial analysis tools such as financial ratios. The output of the analysis was used to measure performance. All this is applicable when using the CAMELS rating model to evaluate the financial performance of the banking sector. The results show statistically significant differences between countries for four factors (Asset quality, Management efficiency, Earnings quality and Sensitivity) and none for the remaining two (Capital adequacy and Liquidity management) because the significant level is higher than 5%. However, the two factors with no significant differences are vital to the prudent operation of banks, mainly that Qatari banks perform better than Kuwaiti banks.

scholarly journals Credit Management Practices and Loan Performance: Empirical Evidence from Commercial Banks in Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 51-63
Author(s):  
Irene Muthoni Mburu ◽  
Lucy Wamugo Mwangi ◽  
Stephen M.A Muathe
Keyword(s):  
Commercial Banks ◽  
Management Practices ◽  
Banking Sector ◽  
Banking System ◽  
Secondary Data ◽  
Bank Loan ◽  
Primary Data ◽  
Credit Management ◽  
Lending Policy ◽  
Debt Collection

Commercial banks in Kenya as per the World Bank report were recording higher non-performance in loans over the study period than the standard globally in spite of Kenya having the most stable and developed banking system in East and Central Africa region. Commercial banks non-performing loans for five years from 2015 to 2018 averaged eleven percent which was higher than the recommended rate of one percent. In Kenya, commercial banks’ non-performing loans remain higher than the recommended rate which could be due to inadequate credit management practices. The study therefore aimed at examining the effect of credit management practices on loan performance of commercial banks in Kenya. Specifically, the study sought to establish the effect of debt collection policy, client appraisal and lending policy on the loan performance of commercial banks in Kenya. The underpinning theory of the study was the 5Cs model for credit. The study used explanatory research design and the research philosophy adopted was positivism. The target population was 44 commercial banks in Kenya and a census approach was used. Both primary and secondary data were used. Primary data was collected through structured questionnaires and related to credit management practices while secondary data was obtained from review of existing bank loan records in relation to loan amount advanced and non-performing loans for a period of four years from 2015-2018. The data collected was analyzed using both descriptive and inferential statistics with the help of SPSS version 22. The study found out that debt collection policy and lending policy had a positive significant effect on loan performance of commercial banks in Kenya. However, client appraisal had no significant effect on loan performance of commercial banks in Kenya. Therefore, the study concluded that commercial banks’ loan performance could be largely attributed to the efficiency of the credit management practices put in place at the institutions. The study recommended that commercial banks to regularly evaluate and update practices relating to debt collection policy, client appraisal and lending policy that are capable of ensuring that credit risks are identified and recorded from departmental level to the institution at large. This is vital in light of technological innovations in the banking sector like mobile lending that may limit commercial banks’ ability to evaluate and manage credit using traditional methods.

scholarly journals Bank lending in Ukraine and simulation of credit activity by methods of system dynamics

2021 ◽  
Vol 2021 (2) ◽  
pp. 89-109
Author(s):  
Hlushchenko Svitlana ◽  
◽  
Ivakhnenkov Sergiy ◽  
Demkiv Sofiia ◽  
◽  
...  
Keyword(s):  
System Dynamics ◽  
Interest Rates ◽  
Growth Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Supply And Demand ◽  
Bank Lending ◽  
Bank Loans ◽  
Short Term ◽  
Loan Portfolio

The trends of bank crediting of businesses and households in Ukraine are determined and credit interrelations between subjects of economy by means of methods of system dynamics simulated. The article shows that by end 2020 the main trends in the Ukrainian banking sector are: 1) increasing the dynamics of return on capital, consistently high interest rates on loans until 2019 and their declining dynamics in 2020; 2) declining trends in the dynamics of the share of loans in the assets of commercial banks and the indicator of the financial depth of lending to the Ukrainian economy; 3) predominance of the share of loans to businesses in comparison with the share of loans to households in the loan banking portfolio; 4) faster growth rates of bank loans to households compared to the growth rates of lending to businesses; 5) in the sectoral context, the largest share in lending to business units is accounted for by trade and in lending to households – by consumer lending; 6) half of the loan portfolio of commercial banks are short-term loans for up to one year; 7) the share of non-performing loans in the loan portfolio remains high; 8) gradual reduction of non-deposit sources among the liabilities of commercial banks and their transition to almost full financing at the expense of customer deposits; 9) increase in the share of short-term and decrease in the share of long-term deposit financing of commercial banks. Based on the methods of system dynamics, the authors created a model that allows to trace the relationship between commercial banks-businesses-households, as well as to calculate the forecast volumes of bank loans in accordance with the demand for loans from businesses and households (weighted by the maximum value credit load) and supply of credit resources by commercial banks. From a practical point of view, determining the characteristic trends of bank lending, modeling the interaction of its main participants and determining the volume of bank loans using system dynamics helps to identify key factors influencing the supply and demand of bank credit resources at the present stage of Ukraine’s development and predict future lending dynamics.

scholarly journals Procesy koncentracji w polskim sektorze bankowym

2004 ◽  
pp. 69-87
Author(s):  
Elżbieta Kacperska ◽  
Jakub Kraciuk
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Financial Sector ◽  
Foreign Banks ◽  
Financial Policy ◽  
Foreign Investors ◽  
Banking Sector Development ◽  
The World ◽  
Set Up

The financial sector presents the strongest tendency towards capital concentration, what is the effect of its deregulation, liberalization and strong competitiveness. Fusions and foreign investors, who are taking banks over, are accomplishing this concentration. From the beginning of 1993 until the first quarter of 2004, the number of active commercial banks decreased from 87 to 59 and 27 fusions and assumptions were noticed. At the beginning of 2004 foreign investors controlled 46 commercial banks out of 59 operating in Poland. The value of their investments exceeded 7 .2 billions PLN and they owned 76.3% of equity and supplementary funds and 67.4% of assets. Owing to these investments, the banking sector development has started and the investors subsidised existing banks, improved infrastructure and made many innovations. The large foreign banks, which were set up as a result of concentration, made banking system more effective and facilitated development of national economy. On the other hand, the superior contribution of large foreign banks obstructs national financial policy and makes the financial sector sensitive to prosperity fluctuations and a crisis of the world banking system.

scholarly journals Russian banking system: searching for trust

2018 ◽  
Vol 212 ◽  
pp. 08016
Author(s):  
Marina Bogatyreva ◽  
Aleksandr Kolmakov ◽  
Mikhail Kolmakov
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Economic Life ◽  
Economic Resource ◽  
Russian Economy ◽  
Productive Area ◽  
Household Incomes ◽  
Relationship Of

The article is devoted to the study of trust, as an economic resource, contributing to the reduction of transaction costs. The paper is divided into two parts. In the first part, the authors define trust, as the transaction participants’ conviction that they can rely entirely on the counterparties’ promises. After that, the character of the damage that the society experiences from the disappearance of the relationship of trust is determined. These losses are caused by the switching of resources from the productive area to the scope of transaction management. Then the authors formulate the conditions that are necessary for the emergence of trust as such and for its spread in the Russian economy. There are two such conditions. The first is the impossibility of changing the contract unilaterally, without taking into account the interests of the counterparty. The second condition is the ability to control the execution of the transaction at any time by the counterparty. Later, the authors set out the reasons why trust has not spread in the political and economic life of contemporary Russia. The second part of the article explores the specific economic problems that arise in connection with the lack of trust between the parties to the contract. As an example, the banking sector, that is, perhaps the most important branch of the modern economy is considered. The second part begins with a short historical overview of the development of the banking sector of modern Russia. It is noted that real interaction between commercial banks and the Russian households began only in the 21st century, when the ruble exchange rate stabilized and the household incomes began to grow rapidly. At the same time, the practice of opportunistic behavior of commercial banks in relation to households was formed. This practice manifests itself in the systematic provision of false information to the customers or withholding truthful information from them. The opportunism of banks, along with high real interest rates, has caused the extremely small role played by Russia’s banking system in shaping consumer demand and, accordingly, overcoming the economic crisis. The passive position taken by the Bank of Russia in confronting banks and households is noted.

Central bank digital currencies: Potential risks and benefits

2020 ◽  
pp. 147-159
Author(s):  
Elena V. Sinelnikova-Muryleva
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Payment Systems ◽  
Economic Agents ◽  
Risks And Benefits ◽  
Monetary Authorities ◽  
Proper Design ◽  
Potential Risks

A growing activity has recently been watched in the sphere of central bank digital currencies (CBDC) creation, dictated by the desire of monetary authorities to increase the efficiency of payment systems and create an alternative to stablecoin projects like Libra. The paper discusses various types of CBCDs. Special attention is paid to potential risks and benefits associated with the emission of CBDCs, as well as their consequences for the banking sector and monetary policy. The first important issue associated with CBDC emission is the potential reduction of the role of the traditional banking system. The second issue is the change in the functioning of the monetary transmission channels as a result of the CBDCs emission. The third problem arises from the fact that in the event of a crisis some economic agents will prefer to transfer their funds from commercial banks to the CBDCs because they are less risky. This situation is expected to lead to instability of balances on deposit accounts in commercial banks. The problems listed are closely interrelated, and the significance and balance of risks and benefits associated with CBDCs emission are not completely obvious. At the same time CBDCs have a potential to become a new effective tool of monetary authorities in case of their proper design.

SOCIAL RESPONSIBILITY OF COMMERCIAL BANKS IN MODERN CONDITIONS OF DEVELOPMENT OF THE RUSSIAN BANKING SYSTEM

2016 ◽  
Vol 11 (1) ◽  
pp. 49-56
Author(s):  
Иванова ◽  
Anna Ivanova
Keyword(s):  
Social Responsibility ◽  
Russian Federation ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Strategy Of Development ◽  
The Social ◽  
The Russian Federation

This article is devoted to the study of social responsibility of commercial banks. The author discusses the main challenges, mechanisms and trends in the development of social responsibility of the banking sector. Results of the research allow to conclude that the principles of social responsibility is currently not fully implemented in the strategy of development of domestic commercial banks, and the level of social responsibility of commercial banks is still quite low, as the level of trust of Russians to banks. The article examines some essential aspects of the development and formation of the social responsibility of commercial banks in the Russian Federation.

scholarly journals What Determines the Profitability of Vietnam Commercial Banks?

2018 ◽  
Vol 11 (2) ◽  
pp. 231 ◽  
Author(s):  
Duong Thuy Nguyen ◽  
Huyen Thanh Ta ◽  
Huong Thi Diem Nguyen
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Liquidity Risk ◽  
State Ownership ◽  
Data Set ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
New Policies

Kunt and Detragiache (1999) said that the profitability of the banking system was a good indication in signaling financial crisis. Therefore, studying determinants of bank profitability is necessary for better understanding of the current condition of the banking sector, and then, for launching new policies. The research explored determinants of Vietnamese commercial banks’ profitability. Using Regression Analysis for Panel Data set of 13 Vietnamese commercial banks over the period from 2006 to 2015, the study found that foreign ownership, cost to income and the level of credit risk, negatively influenced on the profitability of Vietnamese banks, whereas state ownership, size of assets, and macroeconomic factors (GDP and inflation) did not indicated statistically significant relations to the profitability and the relationships between capital structure, liquidity risk and the profitability were mixed.

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