Local marketing elements and their role in achieving customer satisfaction – A field study on some local banks in the State of Kuwait –: عناصر التسويق الداخلي ودورها في تحقيق رضا العملاء – دراسة ميدانية عن بعض البنوك المحلية في دولة الكويت –

The Study aimed to identify the extent of commitment of local banks in the State of Kuwait to work with the concept of marketing internally and externally, and interest in it, and the relationship between training and development of employees in these banks and the extent of customer satisfaction in these banks, and the level of the relationship between employee motivation and the level of customer satisfaction for these banks, and the relationship between delegation of powers to employees And to increase their satisfaction and customer satisfaction. The Study sample consisted of (51) bank references in the State of Kuwait. The study used the questionnaire as a tool for collecting study data. The study applied the descriptive analytical approach. The results of the study reached: The Banks are committed to activating the elements of internal marketing, whether the bank's services or the promotion of services, the efficiency and motivation of workers, and the satisfaction of workers, but the promotion of services came in a lagging position from the point of view of the study sample. The High level of customer satisfaction with banks' services, whether from the good availability of branches for those banks or the speed and simplicity of completing transactions, flexibility in working hours, and following an accurate system in completing transactions. The Elements of internal marketing affect and are significantly related to customer satisfaction and contribute to the level of customer satisfaction. The Bank's services, employee satisfaction, and employee efficiency and motivation are what contribute significantly to customer satisfaction, while promoting services does not affect or contribute to customer satisfaction. There are no statistically significant differences in the averages of each of the marketing elements and customer satisfaction due to the differences in gender, age, educational level and occupation among Kuwaiti bank customers. The study recommended paying attention to the human cadre, relying on electronic methods to provide banking services, and establishing partnerships and alliances between local and foreign banks to benefit from the expertise to develop the elements of banking services.

Competitiveness of the Russian Banking System: Cross-Border Aspect

The processes of globalization and cross-border relations between countries have made it possible to carry out work and provide services in the markets of another country. In the conditions of the banking sector, this process is expressed in the branches of foreign banks or by investing money in the authorized capital of an existing bank. In this case, the management process is located in another country. Foreign investment in all sectors plays an important role in the development of the economy. The classification of commercial banks depends on the source of financing of the authorized capital. The article analyzes the impact of foreign investment on national banking organizations. The growth in the number of commercial banks exacerbates competition in the country. Market participants increase their competitive advantages by introducing additional banking services. The banking sector includes the authorized capital of non-residents, so the bank’s strategy is developed by citizens of another country, taking into account national characteristics. While the foreign banking industry is more likely to overtake domestic technologies, innovations increase the level of competition by adapting foreign mechanisms to Russian markets. The purpose of the study is to analyze the competitive advantages of the national banking sector, taking into account foreign capital. In order to determine whether the policy of a foreign bank affects the atmosphere of the national market, it is necessary to study the industry leaders, measure the share and scale of non-resident banks, using the calculation of the Gerfindahl-Hirschmann market concentration index. The results obtained can reasonably describe the banking market, describe the risks and ways of development of the industry, taking into account the need for an investment fund.

Efficiency and its determinants in the Algerian banks: network data envelopment analysis and partial least squares regression

PurposeThe purpose of this paper is to evaluate the efficiency of Algerian banks and examine the effects of explanatory factors on their performance.Design/methodology/approachIn this paper, a methodology of two-stage network data envelopment analysis (DEA) is used to explore the efficiency of a sample of 13 Algerian banks during the 2013–2017 period. In the first stage, the network DEA is used to assess the overall and stages efficiencies. In the second stage, the partial least squares (PLS) regression is conducted to determine the potential effects of explanatory factors on stages efficiency.FindingsThe main empirical results indicate that Algerian banks need an efficiency improvement in both stages. The overall efficiency of the Algerian banking system improves over the study period. The deposit producing efficiency is positively affected by bank size and bank age. The revenue earning efficiency is negatively associated with bank size and bank age. The domestic banks are more efficient than foreign banks in the deposit producing stage and the foreign banks are more efficient than domestic banks in the revenue earning stage.Practical implicationsThe results might be used as guidelines for both managers and policymakers in order to improve banks and banking system performance.Originality/valueTo the best of our knowledge, this study is the first that uses the DEA in investigating the efficiency of Algerian banks by dividing the overall efficiency into deposit producing and revenue earning efficiencies. Unlike most studies that have usually used OLS regression, Tobit regression and bootstrapped truncated regression, this study is the first in the bank efficiency literature that uses PLS regression to investigate the potential effect of explanatory variables on deposit producing and revenue earning efficiencies.

Globalization of Commercial Banks in Nigeria: Impact of Information and Communication Technology (1988 – 2019)

The study examined the globalization of commercial banks in Nigeria: impact of information and communications technology for the period 1988 to 2019. It was necessitated by the call for more insight on how information and communications technology impacts globalization of commercial banks in Nigeria. It specifically determined the impact of teledensity on loans from non-resident banks to Nigeria, the impact of internet penetration on foreign banks asset in Nigeria, and the impact of banking market size on consolidated foreign claims of Bank of International Settlement in Nigeria. The study adopted ex-post research design in the analysis of data. Data analysis technique is adopted ordinary least squares (OLS) method because of the desirable properties (linearity, unbiasedness and minimum variance, among other unbiased estimators) it possesses. The findings show that ICT plays significant positive role in commercial bank globalization. Recommendations were made on what should be done to ensure the development of the ICT sector in Nigeria.

AN ANALYSIS OF NON PERFORMING ASSETS OF INDIAN SCHEDULED COMMERCIAL BANKS

Non-performing Asset breaks the recycling procedure of deposit and investment as it does not generate substantial income and blocks the cash flow. The motive of the paper is to conduct comparative analysis among Gross NPA, Net NPA, and Net Profit by adopting correlation, ANOVA, the average for selected bank groups which are analyzed in MS-EXCEL and SPSS. The aggregate data of 16 years from 2004-05 to 2019-20 is taken from the RBI website. Public Sector banks acquire more GNPA and NNPA and less Net Profit as compared to other two due to various reasons explained in this paper. Pearson correlation in SPSS shows that there is strongly negative and significant correlation between net profit and GNPA of public sector bank group which reflects that rising bad assets can reduce the banks’ profitability. But in case of foreign banks group, a strong but positive association between net profit and GNPA is observed. The Private bank group shows no significant association between these two variables. ANOVA test result shows there is a significant difference in the movement of GNPAs and NNPAs (in amounts) for different groups of banks during the study period. But in the case of Net profit, no significant difference was observed for these bank groups.

Financial statements as the main source of information on the enterprise activity

The essence of effective management of each business entity depends primarily on transparency and disclosure of information about its financial and economic activities. The financial report itself covers all important information about the state of the enterprise and provides an opportunity to obtain financial status with it by the interested user for further analysis and decision-making on further activities. As a rule, investors of creditors, state bodies, representatives who are preparing in construction with the business entity are interested in financial reporting. In order to provide more detailed and informative financial reporting to users, it is necessary to compile it with international standards, which act as tools for globalization of the economy and contribute to the development of global economic relations. During 2020–2021, the activities of enterprises took place in extremely difficult conditions, which is why the pandemic significantly affected the financial reporting indicators. Today, there is an appropriate use of intelligent technology and computer technology in the formation of financial statements. Financial statements based on taxonomies of financial statements for IFRS are prepared and presented in a single electronic format using Extensible Business Reporting Language (XBRL). XBRL is a generally accepted international standard for presenting financial statements in accordance with IFRS in electronic form. With the help of IFRS, Ukrainian companies have more effectively solved the following tasks: attracting investments and loans from the world's largest companies and banks, the ability to service financing from foreign banks and other organizations; placement of shares on international stock exchanges; providing the company's management with reliable information for making management decisions, as well as evaluating their adoption. Thus, today the economy of Ukraine depends on the choice of IFRS as a conceptual basis for accounting and its practical implementation. After all, the financial statements are fully open to internal and external users to make informed management decisions regarding cooperation with the relevant entity.

Methodical approaches for reducing the credit risk

Banking is inevitably associated with risks. No matter what efforts the bank makes to minimize risks, they will always exist – the only question is to what extent. Lending operations are among the most profitable types of banking, but they are associated with a high level of risk. The instability of the economic situation in the country, the imperfection of the legal framework in this area necessitate a detailed study of the problems of minimizing credit risks. It should be noted that the choice of methods of credit risk management in the bank is quite relevant today. Credit risk management is the most important task of any bank, and choosing the right method of credit risk management will increase the stability, reliability and competitiveness of the banking system, which will positively affect the overall economic condition of the country. Credit risk is the oldest in the system of banking risks and occupies a prominent place. It is necessary to work out an effective system of using the tools recognized by the world banking community to minimize risks, given the possibility of their transfer from the bank to investors. The starting point in the development of the latest risk management tools of the bank should be the creation of a regulatory framework that will regulate this process. It is necessary to improve the existing methodological framework and develop a new methodological framework for credit risk management of the bank, concentrating the advantages of existing assessment methods, create a single method of assessing the borrower's creditworthiness, not to mention a certain algorithm for banks to form credit procedures. It is necessary to adopt the experience of foreign banks in credit risk management. The experience of foreign banks in developed countries, based on a detailed study of all credit procedures, multifactor analysis of the creditworthiness of potential borrowers.

Measuring the performance of the Indian banking industry: data envelopment window analysis approach

PurposeThis study aims to empirically evaluate the performance of commercial banks operating in India.Design/methodology/approachThe efficiency of the commercial banks is evaluated using the data envelopment analysis (DEA) approach. We measure the technical, pure technical and scale efficiency of the sampled conventional banks using the input-oriented model. We employed an extended DEA window analysis approach based on a panel sample of 47 banks in the Indian scenario. The period of study is from 2009 to 2018.FindingsThe results obtained from CRS and VRS measures envisage that Indian banks have failed to manage their inputs efficiently and convert them into outputs. It implies that Indian banks do not operate at an optimum level. Moreover, the results show that public banks exhibit superior efficiency scores followed by private and foreign banks. Apart from the aggregate sector level, we also investigate the performance of Indian banks at the individual level for in-depth analysis. The individual bank-level analysis reports that the public sector banks (PSBs) are the most efficient followed by foreign banks, whereas, the least efficient are the private banks.Research limitations/implicationsThe findings of our study have implications for government, financial institutions and policymakers to access the verve and flexibility of the Indian banking system. The government should consider restructuring inefficient banks to enhance overall performance. This can be considered by improvement in managerial efficiency, efficient allocation of scarce resources and appropriate scale of operation. However, the findings of the study should be interpreted in light of the period of study for the banks being operational (as we filter out banks that ceased to exist) in India and empirical methods employed. The results may vary if alternative measures are used.Originality/valueThe present paper investigates the efficiency of the Indian banking sector employing the Data Envelopment Window Analysis (DEWA) technique. To the best of our knowledge, the present study is perhaps the first one to employ the DEWA measure on the Indian banking industry to gauge their performance over time.

Analisis Rasio Modal, Efisiensi Operasional, Bunga Bersih, Likuiditas, Dan Kredit Bermasalah, Terhadap Rasio Laba

This study aims to analyze financial ratios which include Capital Ratios, Operational Efficiency Ratios, Net Interest Ratios, Liquidity Ratios, Non-Performing Loans Ratios to Profit Ratios at Conventional Commercial Banks in Indonesia. The banks studied were based on bank grouping in terms of ownership category which included State-Owned Banks, National Private Foreign Exchange Banks, National Private Non-Foreign Exchange Banks, Regional Development Banks, Joint Venture Banks, and Foreign Banks. The analysis technique used is multiple regression analysis. Because the data used is secondary data, to determine the accuracy of the model, it is necessary to test several classical assumptions that underlie the regression model. Classical assumption tests used in this study include tests, normality, multicollinearity, heteroscedasticity and autocorrelation. Furthermore, to test the effect of financial ratios as mentioned, statistical tests withused Multiple Linear Regression were. Based on the research, it is found that the Capital Ratio, Operational Efficiency, Interest Yield, Liquidity, and Non-Performing Loans affect bank profits.

AN EMPIRICAL STUDY ON LENDING PATTERN AND PERCEPTION OF COMMERCIAL BANKS TOWARDS SMALL AND MEDIUM ENTERPRISES LENDING

Micro, Small and Medium sector (MSME) is the most dynamic sector due to its capacity for innovation, competence for advancements and perseverance to face multiple challenges. Though this sector contributes 8 per cent to GDP, 45 per cent towards manufacturing output and 40 per cent of exports. Still, they lack support to grow exponentially. Understanding the lending pattern of the banks and the perception of commercial banks towards MSME lending is essential not only for academic knowledge but also could necessitate policy changes. The objective of the research is to understand the lending pattern of banks to SMEs and the perception of commercial banks towards SME lending. The researcher used both primary and secondary data. Statistical tools ANOVA and Kruskal Wallis tests are used to analyze the collected data. The results indicate that there is no significant difference in the lending pattern of public sector banks, Private sector banks and foreign banks and the bank staff have a similar level of perception on difficulties in lending to SMEs, perception on the rejection of loan, perception on reluctance to serve SME sector, perception on loan default and factors affecting credit decisions irrespective of the type of the bank and experience in SME lending.