ON THE INFLUENCE OF BANKING RELATIONSHIPS ON FRENCH SMES FAILURE

Small and medium firms are highly dependent on banks to finance their business activities. Thus, banking relationship may be crucial to overcome financial difficulties and to ensure their continuity. Accordingly, this paper investigates the influence of banking relationship on SMEs failure. In particular, four measures that firms can control to build their banking relationships and, that resemble standard variables from the literature on bank/firms relationships are evaluated: the breadth of relationships (number of banks), the relationship length(relationship duration), the relationship proximity (bank-firm distance) and, the relationship form (type of bank). Applying a logistic regression to a unique sample of 4960 French SME firms over the period 2013-2016, we evidence that banking relationships have a significant role on the SMEs likelihood of failure. More precisely, we find that multibank relationships, working with a small bank and relationship length are significantly negative correlated with SMEs failure. The opposite effect appears in bank-firm distance, which increases the SMEs probability of failure. Additionally, a corporate failure prediction model was built based on both financial ratios and banking relationship variables. The performance of this model was compared to a model based solely on financial ratios as predictive indicators. The results indicate that banking relationship variables possess prediction power to failure and enhance the performance of corporate failure models. Consequently, our findings are important from a policy perspective to further comprehend the role that banks play on SMEs failure.

The Impact of Business Ethics on Islamic Banking Marketing

Address search to determine the effect of the dimensions of business ethics on Islamic Banking Marketing, the subject of business ethics one of the most important topics in the local and international markets, which aims to win and keep dimension competitive advantages both to customers and employees or others. In light of this and the importance of business ethics in influencing public employee in the workplace behavior and the level of performance in organizations , as well as, the level of services in general. research has come to clarify the effect of the dimensions of business ethics on Islamic banking marketing in Sulaimani province, and given the importance of the subject in the Islamic banking is included in this study within the framework of a comprehensive study supports the theory and applied, and centering the research problem in the following questions: What level of significant of business ethics in Islamic banking? Are Islamic banks having a clear idea about business ethics? Has business ethics the role of quality of services in Islamic banking? What is the nature and effect relationship between business ethics and marketing of Islamic banking? In order to answer these questions have been relying on the questionnaire for the collecting data and information in the field of the study, as well as , interviews and field visits were analyzed by (SPSS) and study concluding some important point : there were no significant correlation between business ethics and marketing of Islamic banking relationship. 2. The presence of the influence of spirits between business ethics and marketing of Islamic banking relationship.

REASONS WHY THE CUSTOMERS DISSOLVE THEIR BANKING RELATIONSHIP FROM EXISTING BANKS

The purpose of the study is to find out the reasons of customer relationship dissolution in banking industry. A structured questionnaire was distributed to banking customers based on demographics (gender, age, marital status, education, occupation and, income level) in National Capital Territory. Data was successfully collected from 500 respondents who have either saving account or current account or both. Respondents’ opinion on 21 statements was obtained regarding their intension to dissolve their banking relationship with a particular bank. Principal Component Analysis with VERIMAX rotation on these 21 items was applied to extract the reasons behind dissolving banking relationship by customers. The study found that though there are various reasons why a customer dissolves its relationship with a particular bank but broadly these can be grouped into three categories includes Service Quality and Commitment; Price and Communication; and Involuntary Dissolution. Out of these three reasons, Service Quality and Commitment seems to be most important reason of dissolving a banking relationship.