scholarly journals The Important of Employee Retention Programs towards Bank Performance in East Coast, Malaysia

2019 ◽  
Vol 1 (2) ◽  
pp. 21-27
Author(s):  
Nor Emmy Shuhada Derani ◽  
Fadhilah Bte. Abdul Ghani
Keyword(s):  
Banking Sector ◽  
East Coast ◽  
Hotel Industry ◽  
Training And Development ◽  
High Rate ◽  
Future Research ◽  
Bank Performance ◽  
Retention Programs ◽  
Conventional Banks ◽  
New Industry

The purpose of this study is to explore the important of organizations’ retention programs towards improving firm performance in banking sector. Almost every day, banking sector in Malaysia received resignation letter from its employees. It’s either from permanent or contract basis employees. An organization underestimate this matter and just take it for granted and it resulted bank performance decreased as well as increasing in spending for new hiring. This study has been conducted by distributing questionnaire to commercial and conventional banks in East Coast, Malaysia. The findings displayed the training and development, employee compensation, communication in workplace and value in teamwork is crucial to retain employees as well as to improve bank performance in Malaysia. Result from this study will help management especially HR department to look into retention programs seriously for the purpose of retaining its staff and expertise. For future research, it has been recommended to explore new industry such as manufacturing, hotel industry, retail as well as telecommunication company due to these industries nowadays shows high rate of turnover.

Customer satisfaction and its measurement in Islamic banking sector: a revisit and update

2019 ◽  
Vol 10 (2) ◽  
pp. 565-588 ◽  
Author(s):  
Abdel Latef M. Anouze ◽  
Ahmed Salameh Alamro ◽  
Abdulkareem Salameh Awwad
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Group Analysis ◽  
Business Strategies ◽  
Future Research ◽  
Bank Performance ◽  
Measurement Tool ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

Purpose The purpose of this study is to answer the following questions: How to measure customer satisfaction from the provisioning service of both: Islamic and Conventional banks? Can we trust one tool to measure such satisfaction or both banks are different identities and there is a need for separate measurement tool? What is the relationship between banks operating style (Islamic or Conventional) and bank performance? Design/methodology/approach A cross-sectional survey design was conducted to analyze a sample of customers. A total of 480 Jordanian participants were included in the study. Findings The results of confirmatory factor analysis show that the most important drivers of customer satisfaction are Sharia’ compliance, complaints, pricing and convenience, whereas the least important drivers are e-banking, the perception of employees, enjoyment and tangibles. Also, the result of the multi-group analysis shows that the significant impacts of all drivers on customer satisfaction differ from Islamic banks to Conventional banks except for the enjoyment. The significant effects of customer satisfaction on bank performance also differ from Islamic to Conventional banks. Research limitations/implications The result is limited to the selected sample, and hence, future research in other countries should contribute to a better understanding of the impact of customer satisfaction relationship on bank success or performance. Practical implications This study provides a useful information for bank managers on the main driver of customer satisfaction and performance. Originality/value This study is intended to add to the existing literature in three ways: There is a lack of studies on the main drivers of customer satisfaction, especially those based on a consumer’s decision-making process in Arabic countries like Jordan. This study broadens the scope by testing the proposed model using data from a sample of consumers in Jordan. This study serves to propose and validate the drivers that influence customer satisfaction and bank performance and elucidate the manner of their influence, to help with the development of more effective business strategies.

scholarly journals Board of director’s characteristics and bank performance: Evidence from GCC region

2019 ◽  
Vol 17 (1) ◽  
pp. 14-23 ◽  
Author(s):  
Ehab R. Elbahar
Keyword(s):  
Audit Committee ◽  
Banking Sector ◽  
The Political ◽  
Bank Performance ◽  
Islamic Banks ◽  
Board Of Director ◽  
Gulf Countries ◽  
Risk Committee ◽  
Conventional Banks ◽  
High Level

The main purpose of the current study is to examine the association between Corporate Governance’s (GC) variables represented by board characteristics and Bank performance measured by ROE and ROA in GCC banking sector. For the purposes of this study, the sample of 68 banks in gulf countries during the period from 2013 to 2017 have been selected and divided the data to Islamic banks and conventional banks (16 Islamic banks, 52 Non-Islamic). Furthermore this study uses the nonparametric regression OLS and Quantile analysis. The current study suggest that the existence of female directors on the board of director in last years is significantly associated with better performance, we concludes that females in GCC banking sector in latest years reached a high level of maturity in understanding banking industry. Furthermore, this study suggests that the audit committee associated positively and significantly with bank performance, it means that the audit committee in latest years plays important role in enhancing the performance. In addition to the above, the political member on the board and risk committee does not affect the performance significantly. Both of board size and Sharia committee are associated positively and significantly with performance.

scholarly journals Bank performance and board of directors attributes by Islamic banks

2015 ◽  
Vol 8 (3) ◽  
pp. 291-309 ◽  
Author(s):  
Abdullah Awadh Bukair ◽  
Azhar Abdul Rahman
Keyword(s):  
Sample Size ◽  
Board Of Directors ◽  
Banking Industry ◽  
Future Research ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Negative Effect ◽  
Conventional Banks

Purpose – The purpose of this paper is to examine the relationship between board structure (consisting of board size, board composition, CEO role duality and chairman composition), investment account holders (IAHs) and social contribution and the bank performance in one of the fastest-growing industries, Islamic banking. Design/methodology/approach – A generalized least square (GLS) regression model was used to investigate such relationship applying data from a sample of 40 Islamic banks operating in Gulf Cooperation Council (GCC) countries over the period of 2008 until 2011. Findings – The results show that both size and composition of the board have a negative effect on bank performance. On the other hand, the separation of CEO and chairman roles and the IAHs have no effect, while the chairman independence has a positive impact. As for the control variables, bank size positively influences bank performance whereas leverage has a negative effect. Zakah and gross domestic product produce no significant effect on bank performance. Research limitations/implications – Even though the model has explained the significant part of the variation in performance, there are other factors considered as noise in the model which are unexplained due to the lack of data. As such, other mechanisms of corporate governance (CG) comprising attributes of the remuneration and nominating committees and ownership structure may be used in future research. The sample size is also limited; thus, in future research, the sample size could be increased by including Islamic banks operating in all Middle East countries. Practical implications – The results suggest that to yield a better bank performance, Islamic banks should enhance the effectiveness of CG through the board of directors (BODs), whereby any decisions made by the BODs would lead to greater investors’ confidence in the market. The results suggest that policymakers should impose new mechanisms that could impact the effectiveness and compliance of BODs on the code of CG and guidelines of micro-finance, in general, and among Islamic banks, in particular. The community also has the right to know up to what extent are the Islamic banks are in compliance with Shariah principles and rules and the impact of their transactions on the society’s welfare. Originality/value – BODs’ failures are the primary reason for the recent financial collapses, and Islamic banks are not spared from these events. Even though many studies have examined the influence of BODs effectiveness on the performance of conventional banking industry over time, studies on the Islamic financial institutions are quite scarce. In addition, the results obtained by the studies on conventional banks may not be applicable to Islamic banks. This is because the BODs of Islamic banks discharge their responsibilities and duties along with the existence of the Shariah supervisory board (a multi-layer structure), which is quite different from the CG structure in conventional banks that is dependent on the BODs (a single-layer). Therefore, this research attempts to fill the gap in the literature by addressing this issue in the Islamic banking industry by using a stakeholder theory based on Islamic perspective which has not been used yet in previous studies.

scholarly journals ISLAMIC BANKING AND BANK PERFORMANCE IN MALAYSIA: AN EMPIRICAL ANALYSIS

2020 ◽  
Vol 6 (3) ◽  
Author(s):  
Mansor Ibrahim
Keyword(s):  
Instrumental Variable ◽  
Banking Sector ◽  
Spillover Effects ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Bank Profitability ◽  
Conventional Banks ◽  
Time Invariant ◽  
Modelling Approach

This paper examines the performance of Malaysia’s banking sector and its relationship to the presence of Islamic banking in the country. More specifically, by controlling for the theoretically relevant determinants of bank performance we compare the efficiency, profitability and risk of Islamic banks to conventional banks and examine the spillover effects of Islamic banking penetration on bank performance. To these ends, we adopt a panel modelling approach. Taking note that our focal variables comprise the time-invariant Islamic banking dummy and potentially endogenous Islamic banking share, we apply the Hausman–Taylor (HT) instrumental-variable estimator in the analysis. Our results indicate that Islamic banks in Malaysia are less profitable than their conventional counterparts and that Islamic banking penetration is associated with lower bank profitability. However, the increasing presence of Islamic banking appears to make Malaysian banks less risky and, with limited evidence, more efficient. Finally, the efficiency–risk trade-off seems to have potential as the Islamic banking portion of the sector increases in size. These results are reasonably robust compared to alternative specifications of the model.  

Integrated reporting and performance: a cross-country comparison of GCC Islamic and conventional banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Ammar Abdulla Al Hawaj ◽  
Allam Hamdan
Keyword(s):  
Voluntary Disclosure ◽  
Banking Sector ◽  
Market Performance ◽  
Bank Performance ◽  
Regression Equations ◽  
Integrated Reporting ◽  
Content Type ◽  
Empirical Results ◽  
Gcc Countries ◽  
Conventional Banks

Purpose In the Gulf Cooperative Council (GCC) countries, the integrated reporting (IR) concept has attracted considerable attention from banks. In as much as IR is not a legal requirement anywhere in the GCC, however, the incidence of disclosure by banks across the GCC varies considerably and asymmetries exist in the content of disclosure released by banks within, as well as across, these jurisdictions. This study aims to examine the relationship between IR disclosure and financial, operational and market performance in both Islamic and conventional banks. Design/methodology/approach This study examines five years (2012-2016) of IR from 59 banks in GCC countries with 295 observations. The integrated report index (IRI), as the independent variable, is regressed separately against three performance indicators [return on assets, return on equity and Tobin’s Q (TQ)] as dependent variables. In addition, the following two types of control variables are inserted in the regression equations in this study: macroeconomic (two indicators) and bank characteristics (three indicators). Findings The findings elicited from the empirical results demonstrate that, on the one hand, IR in conventional banks positively affects market performance, while negatively affecting operational and financial performance. On the other hand, the results for Islamic banks show that IR negatively affects market performance, with no discernible effect on neither financial nor operational performance. In the GCC banking sector, for the most, empirical results conflict with expectations implied by signaling theory and capital need theory. From this study, evidence suggests that GCC bank performance would not improve were IR disclosure rendered mandatory. However, that conclusion is stronger with respect to Islamic than with respect to conventional banks in the region. Originality/value The study provides insights into the effect of voluntary disclosure of IR as gauged by various measures of performance across Islamic and conventional banks located in a range of GCC countries. This study accordingly provides perspective on the extent to which IR can and does play a role in contributing to bank performance.

A critical review of relationship between corporate governance and firm performance: GCC banking sector perspective

2015 ◽  
Vol 15 (1) ◽  
pp. 18-30 ◽  
Author(s):  
Tamanna Abdul Rahman Dalwai ◽  
Rohaida Basiruddin ◽  
Siti Zaleha Abdul Rasid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Banking Sector ◽  
Future Research ◽  
Governance Mechanism ◽  
Content Type ◽  
Conventional Banks ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to evaluate existing studies on the relationship of corporate governance with firm performance in different regions and address the need for similar analysis for the Gulf Coperation Council (GCC) sector. The banking sector comprises the conventional and Islamic banks in the GCC sector and is important due to their ability to bring stability to this region. Existing studies that measure the relationship of GCC sector conventional banks and firm performance are limited. This study proposes a need for future research on corporate governance in the GCC region. Design/methodology/approach – This paper will review and analyze the different empirical and theoretical contributions in establishing the relationship between corporate governance and firm performance. Findings – This paper will create a focus for future research of measuring the impact of corporate governance mechanism on firm performance. The regulators will be encouraged to focus on more research studies for the GCC sector development in the field of corporate governance of the banking sector. Research limitations/implications – The existing studies are valid and practicable for the region under study, and the results need not be applicable for other business environments. In addition, the evolving business and economic environment have always brought about inconsistent conclusions; thus, the period of study can always give varied results. Practical implications – The analysis undertaken in this paper will address the literature gaps for the GCC banking sector and play an instrumental role for future studies by theoreticians and regulators. Originality/value – This paper identifies the literature gaps for the GCC region and analyses the most applicable existing studies that can be useful for the banking sector corporate governance improvement. This paper will create opportunities for the future researchers.

Fraud and Bank Performance in Nigeria – Var Granger Causality Analysis

e-Finanse ◽  
2020 ◽  
Vol 16 (1) ◽  
pp. 20-26
Author(s):  
Taiwo A. Muritala ◽  
Muftau A. Ijaiya ◽  
Olatanwa H. Afolabi ◽  
Abdulrasheed B. Yinus
Keyword(s):  
Control Systems ◽  
Granger Causality ◽  
Internal Control ◽  
Banking Sector ◽  
Bank Performance ◽  
Causality Analysis ◽  
Vector Autoregressive ◽  
Granger Causality Analysis ◽  
Long Run ◽  
Multivariate Cointegration

AbstractThis paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected.

Impact of Training and Development Programmes on the Productivity of Employees in the Banks

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Jaspreet Kaur
Keyword(s):  
Regression Analysis ◽  
Banking Sector ◽  
Human Resources Management ◽  
Training And Development ◽  
Linear Forms ◽  
Knowledge And Skills ◽  
Resources Management ◽  
Level Of Satisfaction ◽  
Log Linear ◽  
The Impact

Manpower training and development is an important aspect of human resources management which must be embarked upon either proactively or reactively to meet any change brought about in the course of time. Training is a continuous and perennial activity. It provides employees with the knowledge and skills to perform more effectively. The study examines the opinions of trainees regarding the impact of training and development programmes on the productivity of employees in the selected banks. To evaluate the impact of training and development programmes on productivity of banking sector, multiple regression analysis was employed in both log as well as log-linear forms. Also the impact of three sets of training i.e. objectives, methods and basics on level of satisfaction of respondents with the training was also examined through employing the regression analysis in the similar manner.

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

Sign in / Sign up

Export Citation Format

Share Document