scholarly journals Role of State in the Evolution and Success of Commercial Banks in China

2018 ◽  
Vol 9 (2) ◽  
pp. 38
Author(s):  
Bhabani Shankar Nayak ◽  
Yilin Gao
Keyword(s):  
Competitive Advantage ◽  
Commercial Banks ◽  
Development Process ◽  
Banking Sector ◽  
Banking Industry ◽  
Commercial Banking ◽  
The State ◽  
Financial Reforms ◽  
Large Joint

The article outlines the role of state in the evolution of commercial banks in China. It looks at different stages of its development process. The paper engages with the deepening of state led financial reforms which led to the competitive advantage of China's commercial banking industry. The state-owned commercial banks, large joint-stock commercial banks, and small private commercial banks keep increasing their strengths due to regulations and monitoring by the Chinese state. Therefore, the article argues that state-owned commercial banks have relatively large market share and dominate in commercial banking sector due to the state.

scholarly journals Determinants of Banks Profitability: Empirical Evidence from Ghana’s Commercial Banking Industry

2021 ◽  
pp. 175-189
Author(s):  
Abdul-Hamid Ahmed ◽  
Kouadio Stephane N’Dri
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Commercial Banking ◽  
Annual Data ◽  
Z Score ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
The Impact

Over the years, Ghana’s commercial banking industry has been bedeviled with numerous challenges. The unbridled effect of this is the 2018 banking sector megrim which led to the collapse of seven major banks. This pointed out that it is very crucial to identify and mitigate the factors that negatively affect the performance of the banking sector. This paper is used to investigate the effect of banks specific variables (BSVs) and macroeconomic variables (MEVs) on the profitability of commercial banks (NIM, ROE, and ROA) in Ghana using FRED annual data of 25 years. In order to avoid endogeneity problems and aggregation bias, we used the SURE model to run the estimates simultaneously. The result reveals that profit earned by Ghana’s commercial banks is largely influenced by both internal factors such as KA, AQR, LMGT, MEFFI, and Z-Score and fluctuations in the macroeconomic environment (GDP and FOREX). The impact of KA, LMGT, MEFFI, and Z-score is significantly positive whereas AQR (NPLs) is found to have a negative effect on banks profitability. GDP has a significant negative impact on Ghana’s commercial bank’s profitability whiles forex induced commercial banks profitability positively, but inflation CPI does not determine the profitability of commercial banks in Ghana.

scholarly journals Improving Financial Service Innovation Strategies for Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution: A Hybrid MCDM Model

2019 ◽  
Vol 11 (5) ◽  
pp. 1419 ◽  
Author(s):  
Qun Zhao ◽  
Pei-Hsuan Tsai ◽  
Jin-Long Wang
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Service Innovation ◽  
Recent Emergence ◽  
Innovation Strategies ◽  
The Impact

The recent emergence and rapid growth of new financial services by financial technology (Fintech) companies have driven banking institutions towards operational innovation in order to gain sustainable competitive advantage. This study aims to conduct an in-depth investigation of the banking sector in response to the challenges brought by Fintech startups. Based on the service innovation theory, we propose a novel hybrid multiple criteria decision-making method (MCDM) to evaluate service innovation strategies for improving the sustainability of China’s banking industry during the Fintech revolution. A six-dimensional model comprising 20 sub-criteria is constructed and both the decision making trial and evaluation laboratory (DEMATEL) technique and DEMATEL-based analytic network process (DANP) are used to explore interrelationships among the indices and their related weights. Finally, the modified VIšekriterijumsko KOmpromisno Rangiranje (VIKOR) method is employed to evaluate performance gaps in the four major types of commercial banks in China—state-owned, joint-stock, city commercial banks, and other credit cooperatives—in the field of service innovation. The improvement priorities, ranked from highest to lowest, are new business partners, new service concepts, organizational innovation, technological innovation, new customer interactions, and new revenue models. These results will provide strategies for the sustainable development of China’s banking industry and the implementation of changes in response to the impact of the Fintech revolution.

scholarly journals Dynamic Capabilities and Their Impact on Intellectual Capital and Innovation Performance

2021 ◽  
Vol 13 (18) ◽  
pp. 10028
Author(s):  
Mostafa A. Ali ◽  
Nazimah Hussin ◽  
Hossam Haddad ◽  
Dina Alkhodary ◽  
Ahmad Marei
Keyword(s):  
Intellectual Capital ◽  
Commercial Banks ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Banking Sector ◽  
Commercial Banking ◽  
Innovation Performance ◽  
High Tendency ◽  
Tangible Assets

There is a high tendency for conversion from a statistical economy based on measuring tangible assets into investigating non-tangible capital drive in the present economic status worldwide. The implications of intellectual capital on innovation performance have widely attracted attention among researchers in the global arena. The present study investigated the impacts of intellectual capital on innovation performance in the banking sector as influencing non-tangible assets. Besides, the role of dynamic capabilities in moderating the relationship between intellectual capital and innovation performance was examined. A purposive sampling technique was applied to 364 participants from Iraqi commercial banks as the research context. Thereafter, structural equation modelling (SEM) was utilised to analyse the collected data from the survey questionnaire using SPSS.v25 and AMOS.v24. The study found that the employees’ levels of intellectual capital significantly increased toward innovativeness through the moderating role of dynamic capabilities between intellectual capital and innovation performance in the commercial banking sector for better competitive advantages. Consequently, the study provides valuable insights and guidance for academicians and practitioners on the impacts of developing intellectual capital on enhancing competitive performance, especially in the context of Iraqi commercial banks.

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.

EMERGING TRENDS IN BANKING SECTOR - ITS CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Karigoleshwar .
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Major Change ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Emerging Trends ◽  
Reserve Bank ◽  
Challenges And Opportunities ◽  
Multiple Regions

In financial sector the banking industry is the largest player, has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition. Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. The present era the cashless transactions, E-cheques, mobile wallets. The paper attempts to present the emerging trends and its challenges that recently emerged in the banking sector with special emphasis on digitization. It will be useful to the academicians, banking and insurance personnel, students and researchers. Common readers also know the latest innovations in banking sector

scholarly journals المحددات التي تواجه نظام الرقابة الداخلية في بيئة المصارف التجارية

2017 ◽  
Vol 3 (4) ◽  
pp. 179
Author(s):  
Journals UHD ◽  
Dana Akram Faqe Mahmood ◽  
Shilan Arf Ahmad
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Commercial Banks ◽  
Banking Sector ◽  
Commercial Banking ◽  
Negative Effects ◽  
Internal Auditor ◽  
Regulatory Systems ◽  
Policies And Procedures ◽  
Banking Institutions

This study was conducted to examine the work of internal control systems in banking institutions. It focused on studying the determinants facing the internal censorship system in the commercial banking sector by identifying the deficiencies and shortcomings in the regulatory systems and their negative effects from financial and administrative failure, the overall weak performances and etc, and also by determining the main reasons and obstacles that prevents the application from development of the internal censorship systems in commercial banks. A practical study had been made on a sample of the commercial banks operating in Sulaymaniyah governorate .In order to achive the goal, five commercial banks were used to collect the data from. The researchers used questionairre while collecting data in which they entered the information and data were processed automatically and through statistical models in order to test hypotheses and prove them. The results of the statistical analysis showed that there is a strong correlation between the variables of the research hypothesis and the internal censorship's objectives and the constraints facing to their application in the commercial banking sector of a degree at (0.607). The results showed that the increase of the determinants of the work of internal censrorship systems affected the achievement of the objectives that pursuied by the internal censorship in commercial banks in specifics. The researchers reccomended that there should be a commitments to the laws , accounting policies and procedures that applied to protect the assets especially by the commercial bank's management and to detect errors , fraud and manipulation to support the independency of the work of internal auditor and activate its role to achieve the objectives targeted by the internal censorship systems in commercial banks.

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.

scholarly journals Role of Business Intelligence in Banking Sector for Achieving Competitive Advantage- An Empirical Analysis

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Competitive Advantage ◽  
Business Intelligence ◽  
Quantitative Research ◽  
Banking Sector ◽  
Statistical Tests ◽  
Firm Strategy ◽  
Middle Level ◽  
Mediating Role ◽  
The Impact

With recent advancements in information technology, organizations’ capability to acquire and analyze data for efficient decision making has increased. Good strategies promote alignment among processes and technology in use, which may result in better firm performance. However, there has been little focus on how firm strategies and business intelligence (BI) systems might play their part in forming organizational information and getting a competitive edge. Therefore, the purpose of conducting this study is to investigate the impact of firm strategy on firm competitive advantage with mediating role of BI adoption and moderating role of BI capabilities. For this, a quantitative research methodology was used, and data was collected from 300 middle-level managers in Pakistan's telecom sector. Statistical tests such as descriptive statistics, correlation, reliability analysis, one-way ANOVA, confirmatory factor analysis, and mediation analysis through Hayes process were performed using SPSS and AMOS. The findings revealed a positive link between firm strategy and competitive advantage, with business intelligence adoption serving as a mediating factor. Business intelligence capabilities positively moderate the relationship between BI adoption and competitive advantage. Hence, all proposed hypotheses (H1, H2, and H3) were approved. The contribution and Limitation of the study are also discussed.

Indian Banking Sector: Challenges and Opportunities

2003 ◽  
Vol 28 (3) ◽  
pp. 83-100 ◽  
Author(s):  
K V Kamath ◽  
S S Kohli ◽  
P S Shenoy ◽  
Ranjana Kumar ◽  
R M Nayak ◽  
...  
Keyword(s):  
Competitive Advantage ◽  
Banking Sector ◽  
New Technologies ◽  
Service Providers ◽  
Banking Industry ◽  
Growth Responses ◽  
Changing Environment ◽  
Challenges And Opportunities ◽  
Product Delivery ◽  
Indian Banks

A distinguished panel of managing directors and chief executive officers of some of the well-known banks in the country responded to the theme on the challenges and opportunities faced by the Indian banking sector in the liberalized environment. The contributors addressed the following issues: Financial reforms with specific reference to Indian banking industry focusing on implications to the existing players, new entrants, multinationals, and consumer behaviour. New and emerging opportunities: consumer and commercial banking. Competition: players, intensity, market size, profitability, and growth. Responses to challenges with reference to restructuring, automation, product delivery, and process reengineering. Issues related to governance, regulation, and audit. Product engineering, product design, and product delivery. Consumer expectations, feedback, cross-selling, customer relationship management(CRM), market segmentation, marketing, branding, and new products introduction. HR related issues: VR5, compensation, education and training, empowerment, and career plan. Future scenario: Broad trends in the next five years and the expected position. E-banking and its importance. Salient features of the responses included: The Indian banking sector is at an exciting point in its evolution. The opportu- nities to enter new business and new markets and to deliver higher levels of customer service are immense. As the Indian banks position themselves as financial service providers, banking business is getting redefined. Technology is unsettling the earlier business processes and customer behaviour is undergoing change. These have enhanced the forces of competition. Competitive advantage can be achieved through harnessing the potentialavailable in the employees by creating a positive work culture and enlisting the support of all the employees to the organizational goals. Indian banks have adopted better operational strategies and upgraded their skills. They have withstood the initial challenges and have become more adaptive to the changing environment. In the complex and fast changing environment, the only sustainable competitive advantage for banks is to give the customer an optimum blend of technology and traditional service. Four trends are fundamentally altering the banking industry: consolidation, globalization of operations, development of new technologies, and universali- zation of banking.

The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry

2020 ◽  
Vol 23 (03) ◽  
pp. 2050020 ◽  
Author(s):  
Faisal Abbas ◽  
Shahid Iqbal ◽  
Bilal Aziz
Keyword(s):  
Emerging Economies ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Association ◽  
Bank Risk ◽  
Standard Errors ◽  
Bank Capital ◽  
Short Run ◽  
The Impact

This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.

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