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1
Bougatef, Khemaies. "How corruption affects loan portfolio quality in emerging markets?" Journal of Financial Crime 23, no. 4 (October 3, 2016): 769–85. http://dx.doi.org/10.1108/jfc-04-2015-0021.
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Purpose The purpose of this paper is to empirically investigate the impact of corruption on the asset quality of banks operating in emerging market economies over the period 2008-2012. This issue is of crucial importance given the role of banking systems in economic development and the worldwide spread of corruption. Using panel data set of 22 countries, our findings provide a strong and robust support to the hypothesis according to which corruption aggravates the problem with non-performing loans. This evidence suggests that corruption may hinder economic development through the misallocation of loanable funds. Other results are as follows: economic expansion and capitalization level improve the loan portfolio quality. By contrast, unemployment deteriorates the debt servicing capacity of borrower which in turn contributes to lower the bank asset quality. Design/methodology/approach The authors use panel data techniques on a sample of 22 emerging market economies over the period 2008-2012 to test the relevance of corrupt practices on the soundness of banks. Findings Their findings reveal a robust positive relationship between corruption and non-performing loans (NPLs). This evidence corroborates previous results on the detrimental effect of corrupt practices on financial development. The subdivision of our main sample into two groups on the basis of the level of corruption reveals the importance of the effectiveness of collateral and bankruptcy laws in reducing the effect of corruption on loan portfolio. Moreover, we find that the accessibility to more credit information is helpful only in low corrupt countries since it enhances the soundness of banks by facilitating lending decisions. Originality/value The novelty of this paper is to take into consideration the implications of corruption in investigating the determinants of credit risk.
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Babajide, Abiola Ayopo, Adedoyin Isola Lawal, Lanre Olaolu Amodu, Abiola John Asaleye, Olabanji Olukayode Ewetan, Felicia Omowunmi Olokoyo, and Oluwatoyin Augustina Matthew. "Challenges of accountability in Nigeria: the role of deposit money bank." Journal of Money Laundering Control 23, no. 2 (April 6, 2020): 477–92. http://dx.doi.org/10.1108/jmlc-10-2019-0082.
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Purpose The unhealthy drive for deposit in the banking sector has pushed many banks into unethical practices, thereby resulting in high-level corruption cases in the banking sector. The purpose of this study is to investigate the short- and long-run linkages between bank net interest income and deposit liabilities interacted with corruption, to establish the influence of corruption in deposit mobilisation drive of banks in Nigeria. Also, the study analysed the causal relationship between selected bank variables and fraud. Design/methodology/approach The study used quarterly data on selected variables from 1Q 1993 to 4Q 2017 sourced from Nigerian Deposit Insurance Corporation (NDIC) annual reports and Central Bank of Nigeria (CBN) Statistical Bulletin of various issues. Deposit Money Bank various deposit liabilities are interacted with a corruption index and used as the independent variables, while bank earnings serve as the dependent variable. Error Correction Model (ECM) and Engel Granger approach to co-integration technique were used to analyse the data. Findings The findings reveal that various bank deposit liabilities interacted with corruption index has a negative effect on bank profitability in the long run, though only corrupt fixed deposit is statistically significant at the 5 per cent significance level. Bank total asset, total loan and advances and fraud have a significant effect on bank profitability at 1 and 10 per cent significance level. The findings also reveal that banks profit from corrupt fixed deposit and demand deposit in the short run. Social implications Text Originality/value The literature is awash with bank lending corruption and various institutional factors such as competition among banks, credit bureau and information sharing about borrowers, bank supervisory policies, loan loss provisioning, bank ownership structure and regulatory environment and anti-corruption measures. The aspect of deposit mobilisation and corruption has not been well researched in literature; this study, therefore, fills the gap in the literature by examining the extent deposit money banks contributed to corruption in Nigeria through their cutthroat deposit mobilisation drive.
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Anyndita, Revina, Putri Salsadila, and Mohamad Djasuli. "Analisis Perbandingan GCG Pada Kinerja Keuangan Perbankan Syariah Dengan Perbankan Konvensional." Jurnal Ekonomi Manajemen dan Bisnis (JEMB) 1, no. 1 (January 9, 2023): 31–38. http://dx.doi.org/10.47233/jemb.v1i1.451.
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The implementation of Good Corporate Governance in banking is expected to affect banking performance, because the implementation of Good Corporate Governance can improve financial performance. After the issuance of the Indonesian Banking Regulation (PBI) Number 8/4/PBI/2006 which was later amended by Bank Indonesia Regulation Number 8/14/PBI/2006, it became clear how good and correct Good Corporate Governance practices are. All banking companies are competing to improve corporate image through their respective Good Corporate Governance Reports. It is certain that there are differences between the implementation of Good Corporate Governance between conventional banking and Islamic banking. Because seen from the banking goals are definitely different. The purpose of this study is to see whether there is a difference between the implementation of Good Corporate Governance in conventional banks and Islamic banking. And the result is that the implementation of Good Corporate Governance in the banking industry is actually the same, both conventional banks and Islamic banks because it has been regulated by Bank Indonesia. The implementation of Good Corporate Governance begins with a vision and mission of the company which is then adjusted to the applicable laws and regulations. Then there is an additional organizational structure for Islamic banks in the implementation of Good Corporate Governance with the formation of the Sharia Supervisory Board and the National Sharia Council. Both of them serve as special supervisors of Islamic banks. Apart from that, the difference lies in the corporate culture.
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Othman, Anwar Hasan Abdullah, Younes Soualhi, and Salina Kassim. "Do Islamic Banking Financial Instruments Achieve Equitable Income and Wealth Distribution?" Al Qasimia University Journal of Islamic Economics 1, no. 2 (December 3, 2021): 48–81. http://dx.doi.org/10.52747/aqujie.1.2.70.
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The study investigates empirically whether the current practices of Sharīʿah-based financing contracts namely, Murabahah, Musharakah, Mudarabah, Istisna, Bai Bithaman Ajil, Ijarah and other contracts in the Malaysian Islamic banking industry achieved equitable income and wealth distribution. To do so, the study applied the bounds test and ARDL model to investigate the relationship between Sharīʿah-based financing contracts and Malaysian GINI coefficient index over the period from 1Q 2014 to 1Q 2019. In analyzing the long- and short-run implications, it was found that the practice of such Sharīʿah-based financing contracts in the Islamic banking industry achieved equitable income and wealth distribution in Malaysia using Murabahah, Mudarabah, Istisna, Bai Bithaman Ajil, and other (i.e., forward Ijarah) financing contracts. On the other hand, the findings indicated that Musharakah and Ijarah-based financing contract practices did not achieve equitable income and wealth distribution in Malaysia. This may be because the current practices of both contracts which seem to be handled as debts instruments and designed to the benefit of the banking sector only. To improve the Islamic banks’ financing practices in Malaysia, the outcomes of the study suggest that bank operators should strengthen the weight of Sharīʿah-based profit and loss sharing financing contracts with small and mid-size enterprises (SMEs) instead of corporations. In other words, Islamic banks are able to achieve fair income and wealth distribution and uphold the concept of justice for all by gradually increasing Musharakah-based financing for SMEs that can potentially grow and create economic value. Further, to solve the problem of Ijarah contract practices, Islamic banks must take steps to enhance the requirements of Ijarah contracts, specifically ownership transformation, maintenance responsibility, default penalty, and the issue of legal treatment as well as bear the costs, risks and rewards related to the leasing asset instead of borne by the clint. The empirical findings of the study will provide valuable input for banks policymakers, particularly central banks, and Islamic bank management to evaluate the current practice of Islamic finance and proactively correct shortcomings to achieve equitable wealth distribution. This study is a pioneering investigation that empirically evaluates whether the current practices of Islamic banking financial instruments achieve the aims of the equitable financial system, and ensure that Islamic banks, as intermediaries, address the issue of inequality and attain equitable wealth distribution worldwide.
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Chaikovskyi, Yaroslav. "The development of bank lending to corporate clients in Ukraine in times of economic cycles." Herald of Ternopil National Economic University, no. 4 (86) (December 12, 2017): 72–87. http://dx.doi.org/10.35774/visnyk2017.04.072.
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The article considers bank lending to corporate clients in Ukraine overcoming the issues related to economic cycles. The dynamics of gross domestic product, total assets, and credit portfolios of Ukraine’s banks over the period between 2012 and 2016 is analyzed. The changes in the composition of bank loans to non-financial corporations are analyzed in terms of scheduled payments, forms of currencies, target allocation and economic activities. Additionally, the dynamics and composition of residents’ deposits mobilized by deposit-taking corporations are considered in terms of scheduled payments over the above period. The major factors that hinder the recovery of bank lending to corporate clients are identified. It is highlighted that the main obstacles to the development of banking lending to corporate clients in Ukraine in times of economic cycles are as follows: high interest rates; a significant percentage of unprofitable enterprises and loan arrears in bank loan portfolios; an increase of non-performing loans (NPL); the fact that banks, having sufficient liquidity for lending to economy-boosting projects, prefer to purchase government securities; corrupt practices of granting loans to affiliated companies (insider loans). The percentage of unprofitable enterprises in Ukraine in 2016 is determined and analyzed by type of economic activity. Based on the analysis performed, some assumptions are made about the trends of the development of bank lending to corporate clients in Ukraine and proposals on further harmonization of bank lending to corporate clients in times of economic cycles are set out.
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Shakil, Mohammad Hassan, Nihal Mahmood, Mashiyat Tasnia, and Ziaul Haque Munim. "Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks." Management of Environmental Quality: An International Journal 30, no. 6 (September 9, 2019): 1331–44. http://dx.doi.org/10.1108/meq-08-2018-0155.
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Purpose Earlier firms were evaluated mostly from their financial performance perspective, but with the increasing attention to sustainability goals, environmental, social and governance (ESG) performance of firms became key concerns to stakeholders. The purpose of this paper is to explore the effects of ESG performance of banks on their financial performance, in the context of emerging markets. Design/methodology/approach This study employs the generalised method of moments technique for estimation purpose due to the dynamic nature of the data and to correct for endogeneity. This study uses the ESG performance data of 93 emerging market banks from 2015 to 2018, available in Asset4 ESG database of Refinitiv, formerly known as Thompson Reuters. The accounting and financial data are collected from Refinitiv Datastream database. Findings The findings indicate a positive association of emerging market banks’ environmental and social performance with their financial performance, but governance performance does not influence financial performance. Originality/value While many studies exist on the association of ESG concerns of an organisation with their financial profitability, the literature on in the context of banking is still limited. To the best of the authors’ knowledge, this is the first study that examines the effect of ESG practices of banks on their financial performance in the context of emerging economies.
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Miskun, Iksan, Kasmar, Taufik Firmanto, Ainun Wulandari, Masrin, Sahidah, and Nastion. "Implementation of Know Your Customer Principle in Banking Practices at Bank BNI 46 Bima Branch." Law and Justice 8, no. 2 (December 31, 2023): 153–64. http://dx.doi.org/10.23917/laj.v8i2.2135.
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Artikel ini merupakan penelitian hukum yang menganalisis penerapan prinsip mengenal nasabah (know your customer) dalam praktik perbankan, hal ini sangat penting dilakukan untuk dapat mengidentifikasi transaksi yang mencurigakan sejak dini, dan meminimalkan berbagai risiko, seperti risiko operasional, risiko hukum, risiko transaksi terkonsentrasi, dan risiko reputasi. Metode yang digunakan dalam penelitian ini adalah metode penelitian hukum empiris, dengan mengambil lokus di Bank BNI 46 Cabang Bima. Temuan baru yang ditemukan dari penelitian ini adalah pelanggaran terhadap prinsip kerahasiaan di mana bank diizinkan untuk mengetahui identitas nasabah terkait dengan profil dan karakter transaksi nasabah. Hasil dan pembahasan menunjukkan bahwa Bank BNI 46 Cabang Bima menerapkan Prinsip know your customer. Aturan Know Your Customer sebagaimana tercantum dalam PBI Nomor 3/10/PBI/2001 yang kemudian diubah oleh Bank Indonesia Mengenai Penerapan Prinsip dengan Peraturan Bank Indonesia Nomor 5/21/PBI/2003 Mengenai Perubahan Kedua atas Peraturan Bank Indonesia Nomor 3/10/PBI/2001 tentang Penerapan Prinsip Kenal Nasabah. Dalam menerapkan prinsip mengenal nasabah, bank dapat mencurigai transaksi yang diduga berasal dari hasil kejahatan, seperti penyelundupan uang, suap, tindak pidana korupsi, penyelundupan tenaga kerja, dan kejahatan perbankan. Selain itu, transaksi keuangan yang menyimpang dari profil, karakteristik, atau kebiasaan pola transaksi nasabah perusahaan juga patut dicurigai. Kesimpulannya, prinsip mengenal nasabah (know your customer principle) adalah salah satu prinsip penting dalam dunia perbankan dan keuangan, yang telah diimplementasikan oleh Bank BNI 46 Cabang Bima mengacu pada kebijakan dan prosedur yang diterapkan oleh lembaga keuangan untuk memastikan identitas dan karakteristik nasabah sebelum memberikan layanan keuangan kepada mereka. Namun, hal ini justru bertentangan dengan tradisi kerahasiaan antara bank dan nasabahnya, yang menjadi pilar utama membangun hubungan kepercayaan antara bank dan nasabahnya. This article is a legal research that analyzes the application of the principles get to know customers (know your customer ) in banking practice, this is very important to do to be able to identify transactions early suspicious, and minimize various risks, such as operational risk, legal risk, risk of concentrated transactions, and reputation risk. The method used in this research is an empirical legal research method, by taking the locus at BNI 46 Bima branch. novelty What is found from this research is a violation of the principle of confidentiality where the bank is allowed to know the identity of the customer related to the profile and the character of the Customer's transaction. The results and discussion show that BNI has 46 Bima branches apply Know Your Customer Principles. Know Your Customer Rules as set forth in PBI Number 3/10/PBI/2001 which was later amended by Bank Indonesia Concerning Application of Principles with Bank Indonesia Regulation Number 5/21/PBI/2003 Concerning the Second Amendment to Bank Indonesia Regulation Number 3/10/PBI/ 2001 concerning Application of Know Your Customer Principles . In implementing the principle of knowing your customer, banks can suspect transactions that are suspected of originating from the proceeds of crime, for example money smuggled, bribery, corruption crimes, labor smuggling, banking crimes. In addition, financial transactions that deviate from the profiles, characteristics or habits of the company's customer transaction patterns are also suspect. In conclusion, the principle of knowing your customer (know your customer principle) is one of the important principles in the world of banking and finance, which has been implemented by Bank BNI 46 Bima Branch referring to the policies and procedures implemented by financial institutions to ensure the correct identity and characteristics of their customers before provide financial services to them. However, this is precisely the opposite of the tradition of secrecy between the bank and its customers, which is the main pillar for building a trusting relationship between the bank and its customers.
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Itmam, Shohibul. "AKTUALISASI BISNIS DAN PEMBIAYAAN BERLABEL SYARIAH." Equilibrium: Jurnal Ekonomi Syariah 7, no. 1 (May 22, 2019): 146. http://dx.doi.org/10.21043/equilibrium.v7i1.5237.
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<em>This paper describes a business and financing labeled sharia that is currently reaping controversy in its actualization. This business practice and financing labeled sharia is different from conventional banking or financial institutions. Sharia labeled business practices and financing were initially present as a choice and solution for Muslims who want to avoid the practice of banks or conventional financial institutions that use the ribawi system which can then be an option for other Muslims. The focus of the writing is to question the actualization and existence of sharia-labeled institutions whether they are correct in substance and reflect sharia. The results of the writing are that the implementation of sharia-labeled businesses such as sharia financial institutions (LKS) still exists in substance practices so that business stakeholders are obliged to be sharia-responsible to not only practice usury-free LKS but must also be free from elements of the Shariah like gambling, speculation and so on. Islam commands to stay away from these things because it is considered as doing wrongdoing or damage. Sharia-labeled businesses and financing that are not yet appropriate are demanded not only purely business which aims to make profits as high as high by putting aside the substance of sharia but also must have the principle of mashlahah for stakeholders. Sharia business and labeling in order to remain in sharia principles whose operations are a shared responsibility between managers and state institutions appointed to carry out sharia-labeled business and financing processes and procedures in the right and correct corridors and do not engineer sharia which is merely a figment of impersonation sharia.</em>
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Appah, Ebimobowei, Sekeme Felix Tebepah,, and Emmanuel Odinakachi Eburunobi,. "Green Banking Practices and Green Financing of Listed Deposit Money Banks in Nigeria." British Journal of Multidisciplinary and Advanced Studies 5, no. 1 (January 11, 2024): 41–73. http://dx.doi.org/10.37745/bjmas.2022.0394.
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This study examined the nexus between green banking practices and green financing sources of listed deposit money banks in Nigeria. The study anchored on the institutional theory and cross sectional survey research design was adopted with a population consisting of listed banks in Nigeria. The study used stratified random sampling of seven hundred and fifty (750) bank employees with questionnaire as the primary source of data collection from the respondents while only five hundred (500) were used for data analysis using univairate, bivariate and multivariate methods of data analysis. The results from the regression analysis disclosed that banks’ employee-related practices of green banking positively and significantly influence sources of green financing of deposit money banks in Nigeria; banks’ daily operations-related practices of green banking positively and significantly affect sources of green financing of deposit money banks in Nigeria; banks’ customers-related practices of green banking positively but significantly influence sources of green financing of deposit money banks in Nigeria; banks’ policy-related practices of green banking positively and significantly influence sources of green financing of deposit money banks in Nigeria and banks’ green investment related practices of green banking positively and significantly impact on sources of green financing of deposit money banks in Nigeria. Consequently, on the basis of the findings the study concluded that green banking practices positively influences the sources of green financing of deposit money banks in Nigeria. Therefore, the study recommends amongst others that banks’ in Nigeria should adopt contemporary banking practices that are ecofriendly as a means of enhancing the sources of green financing in Nigeria.
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Hoque, Nazamul, Md Masrurul Mowla, Mohammad Shahab Uddin, Abdullahil Mamun, and Mohammad Rahim Uddin. "Green Banking Practices in Bangladesh: A Critical Investigation." International Journal of Economics and Finance 11, no. 3 (February 15, 2019): 58. http://dx.doi.org/10.5539/ijef.v11n3p58.
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Green banking or sustainable banking is one of the issues of the concern of all stakeholders of the world. Following this concern, this study has investigated the status of green banking practices of the non-bank financial institutions (NBFIs) and commercial banks of Bangladesh. Analyzing the contents of annual reports as well as websites of banks and NBFIs, the study finds that 44 out of 57 banks and 13 out of 33 NBFIs, to a varying degree, have exposures in direct or indirect green financing. But only 45 banks and 25 NBFIs conducted environmental risk rating. Most of the banks and NBFIs practice green banking only in a limited scale and volume and disclose green banking information in a semi structured manner in both the annual reports and corporate websites. However, except one, all the 56 scheduled banks and all the 33 non-bank financial institutions (NBFIs) have their own green banking policy guidelines. They also have green office guide for conducting in-house green activities. The study finds that green banking disclosures in their annual reports exceed that in their websites. It is also found that both private commercial banks (PCBs), and foreign commercial banks (FCBs) have surpassed state-owned commercial banks (SCBs) and state-owned specialized development banks (SDBs) in terms of the green financing.
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Mohamud, Hussein Hillowle, and Fredrick Warui. "Innovative Banking Practices and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 3, no. 1 (August 13, 2021): 41–53. http://dx.doi.org/10.35942/ijcfa.v3i1.180.
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Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovations, the agency and bank-led theories. It was explanatory in nature and applied a census approach to gather information. The targeted group included commercial banks registered under the Central Bank totalling to 42 tiers 1. Raw and derived data was equally utilized including, financial statements and face to face interviews with top level managers. Collected information was examined by SPSS. Given conclusions were dispensed descriptively, and by inferring to statistical presentations. The resulting conclusion was that; when RTGS, agency banking, EFT, and mobile banking are solely brought up/down by a single unit, financial performance increased/ decreased by 0.163, 0.27, 0.197, and 0.318 units. At a constant however, financial performance remained at 0.236 out of 5 units. In conclusion, commercial in banks have significantly relied on innovative banking practices to shift their financial performance to new heights. The study has particularly placed both mobile and agency banking at a more central position in driving financial performance to the desired level than other factors including the RTGS and EFT. As part of the recommendations, managements of commercial banks should consider scaling up their adoption of RTGS, agency banking, EFT, and mobile banking as ways of reducing the operating cost of their respective banks reducing banking hall congestions since most of the frequently sought banking services can be achieved without one on one meeting with the bank tellers. Management should also consider adopting more innovative banking practices besides those this research investigated.
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Chen, Naiwei. "C ORRUPTION D IVERSIFICATION AND ASSET QUALITY OF ISL AMIC AND CONVENTIONAL B ANKS : A DYNAMIC PANEL DA TA APPROACH." International Journal of Islamic Business 4, no. 2 (December 31, 2019): 15–32. http://dx.doi.org/10.32890/ijib2022.4.2.2.
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Minimal research to date has examined whether and how corruption and diversification influence the asset quality of Islamic banks from the agency perspective. The study aims to fill this research gap using a sample of 155 banks (28 Islamic banks and 127 conventional banks) in three Asian countries (Indonesia, Malaysia, and Pakistan) from 2006 to 2012. Estimation of the dynamic panel data model reveals that corruption negatively affects the asset quality of Islamic banks whereas conventional banks see no such effect. Corruption also proves to strengthen (weaken) any negative (positive) effect of diversification on the asset quality of Islamic banks, in particular. Furthermore, the modifying effect of corruption is particularly found in more corrupt countries (Indonesia and Pakistan) as opposed to a less corrupt country (Malaysia). Overall, results suggest that banks should engage in diversification moderately because diversification’s negative effect can overpower its positive effect. In addition, Islamic banks and particularly small ones should watch out for the negative effect of corruption because these banks’ asset quality is more influenced by corruption than other banks. Furthermore, it is crucial for policymakers to effectively control corruption to maximize the asset quality of banks for better financial stability of the banking sector. This is especially true for Islamic banks because they are more likely to incur higher agency costs as opposed to conventional banks.
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Chen, Naiwei. "C ORRUPTION D IVERSIFICATION AND ASSET QUALITY OF ISL AMIC AND CONVENTIONAL B ANKS : A DYNAMIC PANEL DA TA APPROACH." International Journal of Islamic Business 4, no. 2 (December 31, 2019): 15–32. http://dx.doi.org/10.32890/ijib2019.4.2.2.
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Minimal research to date has examined whether and how corruption and diversification influence the asset quality of Islamic banks from the agency perspective. The study aims to fill this research gap using a sample of 155 banks (28 Islamic banks and 127 conventional banks) in three Asian countries (Indonesia, Malaysia, and Pakistan) from 2006 to 2012. Estimation of the dynamic panel data model reveals that corruption negatively affects the asset quality of Islamic banks whereas conventional banks see no such effect. Corruption also proves to strengthen (weaken) any negative (positive) effect of diversification on the asset quality of Islamic banks, in particular. Furthermore, the modifying effect of corruption is particularly found in more corrupt countries (Indonesia and Pakistan) as opposed to a less corrupt country (Malaysia). Overall, results suggest that banks should engage in diversification moderately because diversification’s negative effect can overpower its positive effect. In addition, Islamic banks and particularly small ones should watch out for the negative effect of corruption because these banks’ asset quality is more influenced by corruption than other banks. Furthermore, it is crucial for policymakers to effectively control corruption to maximize the asset quality of banks for better financial stability of the banking sector. This is especially true for Islamic banks because they are more likely to incur higher agency costs as opposed to conventional banks.
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Birzhanova, A., and A. Nurgaliyeva. "The impact of Green practices on Banks’ profitability." ECONOMIC SERIES OF THE BULLETIN OF THE L.N. GUMILYOV ENU, no. 1 (2023): 285–94. http://dx.doi.org/10.32523/2789-4320-2023-1-285-294.
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The article empirically tests the relationship between “green banking” practices and banks’ profitability on the example of the five largest Kazakhstani banks. The authors built a multiple linear regression model with such independent variables as Time and Cashless payments as a proxy for green banking. The results found that pairwise correlations between Time and Return on Assets, and between Cashless Payments and Return on Assets, are high. However, the findings could not establish a strong positive relationship between “green banking” and profitability, since the coefficients were not statistically significant. This could be explained by model limitations and data unavailability. However, several studies (in the case of China, Bangladesh, and Kenya) could establish a positive correlation between green banking and financial performance. We believe further research could refine our model by including more observations or choosing other estimators for green banking
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Krinichansky, Konstantin, and Nataliya Nurislamova. "DIGITALIZATION IN THE BANKING SECTOR: RUSSIAN PRACTICES." Bulletin of the South Ural State University series "Economics and Management" 16, no. 2 (2022): 73–81. http://dx.doi.org/10.14529/em220207.
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The penetration of digitalization into the banking sector poses many questions for managers and owners of banks, it challenges experts and researchers. The study examines the main directions and effects of digitalization in the banking business. The focus is put on the relationship between the level of digitalization of banks and such indicators of their activities as the size of loans, deposits, return on equity and, in addition, metrics designed to measure the customer base of banks. The purpose of the work is to develop a methodological approach to assessing the above-mentioned relationship, as well as to test the null hypothesis, which consists in the fact that there is no relationship between the level of digitalization of banks and the indicators of their activities mentioned above. The object of our study in the broad sense is the national banking system as a field for the implementation of digital solutions and innovations and adopting competitive strategies. In a narrow sense, we examine a sample of the 20 Russian credit institutions most advanced in terms of digitalization. The companies for the study have been chosen based on expert assessments and stratified selection, which assumes that the objects share certain uniform properties for comparison. In accordance with the objectives, ranking methods, correlation and comparative analyses have been used. The result of the study can be formulated in the following theses. Despite the acknowledged progress in digitalization of Russian banking sector, cross-sectional analysis does not reveal a significant relationship between the level of digitalization of Russian banks and the main indicators of their activities. The positive correlation can be traced in relation to the “number of active users” indicator. This result can be explained by the fact that 1) the relationship between the considered metrics is indirect, 2) the return on the innovative technologies used by banks has a delayed effect, 3) new strategies (for example, forming of ecosystems) direct banks’ investments to other fields beyond the banking sector and cause insignificant correlation of these investments with the indicators of the size of the loan portfolio or the volume of deposits.
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Tran Thi Thanh, Tu, and Dung Nguyen Thi Phuong. "Factors affecting green banking practices: Exploratory factor analysis on Vietnamese banks." Journal of Asian Business and Economic Studies 24, no. 02 (April 1, 2017): 04–30. http://dx.doi.org/10.24311/jabes/2017.24.2.05.
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This paper aims at studying the factors affecting green banking practices in Vietnam and the role of green banking in sustainable development of the Vietnamese economy. A large scale survey con-ducted with 32 banks and financial organizations in Vietnam to obtain 329 questionnaire forms in the period from May to July 2016 provides evidence for the research. By using EFA analysis and the regression model, we find that understanding the definitions of green banking, the current activities of green banking, the advantages in developing green banking, and the focused sectors have positive relationships with the willingness of Vietnamese banks to adopt green banking practices, whereas the barriers have negative relation-ships with the willingness to utilize green banking services among Vietnamese banks. From the research findings, we suggest some solutions to not only enhance the understanding of the importance of green banking in economic development but also improve the willingness to follow green banking practices among Vietnam’s banking institutions.
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Khan, Waqas, and Muhammad Tahir. "Comparative Analysis of Risk Management Practices of Commercial Banks in Afghanistan." Jinnah Business Review 09, no. 01 (January 1, 2021): 110–22. http://dx.doi.org/10.53369/jnfv3616.
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The main objective of the study was to compare the risk management practices of public and private banks and rank different types of risks faced by public and private banks in Afghanistan banking sector. The study empirically tested the level of efficient risk management practices in the banking sector of Afghanistan. A representative sample of 110 individuals was used from both public and private banks. The analysis was based on correlation, regression analysis, and t-statistics. The findings suggest that private banks are more efficient than public banks in terms of risk assessment and analysis, risk monitoring, and credit risk management. Furthermore, RAA, RMON, and CRA are the significant determinants of RMPS. Overall, there is no significant difference in the risk management practices of public and private banks. The study found credit risk, country risk, and liquidity risks as the major risks for the banking sector in Afghanistan. Financial statement analysis, audit and physical staff, and value at risk analysis are the three top instruments respectively for the assessment of risk. This study is the first attempt to understand and analyze the risk management practices of the banking sector of Afghanistan, the results of which will assist various stakeholders of the banking industry in their decision-making process.
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Abbas, Ali Abdulhassan, and Anwar Abdul Kareem Hassouni. "Exploring the nexus between banking stability and market value: Evidence from the Iraqi banking sector." Economics, Management and Sustainability 9, no. 1 (May 16, 2024): 21–42. http://dx.doi.org/10.14254/jems.2024.9-1.2.
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Purpose: This study aims to investigate the relationship between banking stability and market value in the Iraqi banking sector, exploring how the stability of banks impacts their market capitalization. Methodology: The study employs a quantitative approach, utilizing financial ratios such as return on assets, equity/assets, and the z-score index to quantify banking stability. Market value is measured using banks' share prices and outstanding shares. A sample of 17 Iraqi banks is analyzed over a four-year period, employing statistical analysis to examine the relationship between banking stability and market value. Results: The findings reveal a positive relationship between banking stability and market value. Banks with strong risk management practices, adequate capital buffers, and effective regulatory oversight inspire greater confidence among depositors and investors, translating into higher market valuations. Conversely, banks facing poor governance, high non-performing loans, and thin capital cushions struggle to achieve stability, eroding their market value. Theoretical Contribution: The study contributes to the existing literature by providing empirical evidence on the crucial role of banking stability in shaping market valuations. It highlights the importance of sound banking practices, regulatory frameworks, and risk management in enhancing investor confidence and, ultimately, the market value of banks. Practical Implications: The findings offer insights for policymakers, regulators, and financial institutions in Iraq and other regions. Promoting banking stability through enhanced prudential oversight, governance practices, risk management capabilities, and financial inclusion can favorably impact the market valuation and development of the banking system.
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Handajani, Lilik, Ahmad Rifai, and L. Hamdani Husnan. "Study of The Initiation of Green Banking Practices at State-owned Bank." Jurnal Economia 15, no. 1 (April 15, 2019): 1–16. http://dx.doi.org/10.21831/economia.v15i1.21954.
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AbstractThis study aims to describe the initiation of green banking practices at state-owned banks by identifying reporting issues and the level of green banking disclosure as well as formulating the reporting domain and indicators of its activities. Content analysis is carried out on information related to green banking activities report in the annual report of BUMN banks for the period 2015-2017. The research findings reveal that state-owned banks have initiated green banking practices. The practices come in various forms of activity due to the absence of reporting guidelines and the trend to report green banking activities that have been increasing over the past 3 years. Indicators of green banking activities in state-owned banks can be grouped into several reporting domains namely, green products, green operations, green customers and green policies. The implications of the study argue that the initiation of green banking practices in the practice of green banking at state-owned banks can be a role model for initiating environmentally friendly bank practices. Moreover, it is expected that environmentally friendly bank practices can minimize business risks by reducing environmental and social risks by harmonizing economic, environmental and social interests in towards achieving sustainable finance. Keywords: state-owned bank, green banking, sustainable finance Kajian Tentang Inisiasi Praktik Green Banking Pada Bank BUMNAbstractPenelitian ini bertujuan untuk mendeskripsikan inisiasi praktik green banking pada bank BUMN dengan mengidentifikasi isu-isu pelaporan dan tingkat pengungkapan green banking serta merumuskan domain pelaporan dan indikator kegiatannya. Analisis isi dilakukan terhadap informasi yang berkaitan dengan pelaporan aktivitas green banking pada laporan tahunan bank BUMN periode 2015-2017. Temuan penelitian mengungkapkan bank BUMN telah melakukan inisiasi praktik green banking dengan bentuk aktivitas yang beragam karena belum adanya pedoman pelaporannya dan terjadi kecenderungan pelaporan aktivitas green banking yang semakin meningkat dalam kurun waktu 3 tahun terakhir. Indikator kegiatan green banking pada bank BUMN dapat dikelompokkan dalam domain pelaporan yang meliputi green product, green operational, green customer, dan green policy. Implikasi dari penelitian mengargumentasikan bahwa inisiasi praktik green banking pada bank BUMN dapat menjadi role model inisiasi praktik bank ramah lingkungan untuk meminimalkan risiko bisnis dengan mengurangi risiko lingkungan dan sosial dengan menyelaraskan kepentingan ekonomi, lingkungan dan sosial dalam mewujudkan keuangan berkelanjutan. Kata kunci: bank BUMN, perbankan hijau, keuangan berkelanjutan
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Sarwar, Mohammad Sulaiman, Hamidullah Shirzai, Mohammad Shakir Ebrahimi, and Faridullah Lalzai. "Factors Affecting Performance of Financial Institutions: A Case Study of Afghanistan International Bank." Integrated Journal for Research in Arts and Humanities 3, no. 6 (December 22, 2023): 183–90. http://dx.doi.org/10.55544/ijrah.3.6.21.
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This study investigated and focused upon the risk management practices of banks in Afghanistan and their influencesd on banking performance. In recent years, the importance of risk management in banking institutions has grown significantly, particularly following the Global Financial Crisis. The study holds particular significance in the context of Afghanistan, a developing economy where the banking sector plays a vital role in national development. The continuity and success of banks in Afghanistan were intricately tied to effective risk management. This research aims to contribute to the ongoing debate surrounding risk management effectiveness in developing countries, specifically Afghanistan. It explores the relationship between risk management practices and banking performance while assessing the level of risk understanding and management in Afghan banks. The study's findings highlight the importance of risk understanding, risk assessment and analysis, managing credit risk, and managing liquidity risk in improving risk management practices in Afghan banks. These results provide valuable insights into enhancing the effectiveness of risk management in the banking sector.
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Baicu, Claudia Gabriela. "TOWARDS BETTER INVOLVEMENT IN GREEN BANKING PRACTICES: EVIDENCE FROM ROMANIA." Management of Sustainable Development 13, no. 1 (December 1, 2021): 9–13. http://dx.doi.org/10.54989/msd-2021-0002.
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The European Green Deal has re-ignited the imperative of green finance that is called to support the European Union transition to a greener economy. Green finance becomes even more opportune in the context of the economic recovery after the COVID-19 pandemic. The aim of the paper is to explore green banking practices in the Romanian banking system. The investigation reveals the efforts of banks to be environmentally friendly and to be involved in financing of some green projects, such as the energy efficient projects. Nevertheless, the green banking products are still in the emerging stage and banks in Romania should develop their role in the field, by diversifying the range of green products and services, improving the expertise to assess green projects or intensifying the marketing initiatives to promote green products. In order to encourage banks in Romania to provide green financing several incentives should be conceived; similar to banks, the borrowers seeking green projects should be rewarded. Some mandatory requirements for banks to be involved in green investments may promote green banking in Romania. An essential condition to achieve the development of green banking in Romania is to increase awareness towards environmentally friendly behaviour at all levels.
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Sultana, Israth. "Corporate governance and banking performance: A comparative study between Islamic and conventional banking sector in the context of Bangladesh." Asian Business Research Journal 8 (February 6, 2023): 1–5. http://dx.doi.org/10.55220/25766759.133.
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Corporate governance (CG) is a set of principles that should be included into every aspect of the firm in order to ensure accountability and responsibility. The purpose of this research is to look at the state of corporate governance (CG) in banking sector of conventional banks and Islamic banks. Because the rules, regulations, and operating processes of conventional and Islamic banks differ significantly, the corporate governance (CG) practices of these two banking sectors are likewise distinct. In this work, the authors attempt to give a clear comparative assessment of corporate governance (CG) practices in these two banking sectors. This research looked at four dimensions of corporate governance: board size, board diversity, board diversity, and CEO duality. Return on Equity (ROE) and Return on Assets (ROA) have been used to evaluate banking performance. Regression analysis is used to evaluate the banking performance of the said banking sectors. It is found that BS, IND and BD have positive impact on ROE in Islamic banks sample. On the other hand, in terms of the coefficient of independent variables from sample banks of conventional sector are found to be negative influence on ROE in where IND and CEO duality shows significant result. Both conventional and Islamic banks are under pressure to enhance their corporate governance (CG) practices, since both banking sectors are seeing considerable improvements. However, when compared to conventional banks, Islamic banks lag behind in terms of corporate governance (CG). Companies must comprehend the advantages of implementing strong governance techniques and accompanying activities that aid in enhancing financial performance.
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Gulomkodirova Mamura Saydumarxon qizi. "AN OVERVIEW OF GREEN BANKING PRACTICES IN UZBEKISTAN." QO‘QON UNIVERSITETI XABARNOMASI 9 (December 30, 2023): 121–25. http://dx.doi.org/10.54613/ku.v9i9.851.
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The research draws on existing literature on green banking practices, as well as case studies of banks in Uzbekistan. This approach allowed for a thorough and comprehensive understanding of the topic. The main purpose of this paper is to provide an overview of green banking practices in Uzbekistan, with a focus on mobile banking, online banking, green financing, and guidelines for green banking practices. This paper will also explore the role of green banking in promoting CSR (Corporate Social Responsibility) and will discuss the importance of green banking in Uzbekistan, and the challenges that need to be overcome in order to implement it effectively. The literature review revealed a number of important findings, including the lack of standardized definitions for green banking practices, the challenges faced by banks in implementing these practices, and the benefits that can be gained by doing so. These findings will be further explored in the main body of the paper.
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Al-Badri, Sundus Hamid Musa, and Haidar Jerry Mohsen Al-Fraiji. "The Role of Banking Secrecy in Improving Banking Performance." Al-Ghary Journal of Economic and Administrative Sciences 17, no. 4 (October 29, 2023): 323–40. http://dx.doi.org/10.36325/ghjec.v17i4.13805.
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The purpose of this study is to seek to identify the role of banking secrecy in improving banking performance, and to propose new mechanisms aimed at overcoming obstacles that stand in the way of developing banking performance and working to improve the performance of banks under study.
The research included quantitative analysis of data related to six commercial banks in the South of Iraq. The study sample included a group of 50 employees in these banks. The analysis is based on a solid base that sought to uncover the practices of these Banks in how to improve their banking process. The study sought to test several hypotheses related to the influencing relationships between the study variables represented in banking secrecy and banking performance. The data were processed through statistical methods using the statistical program (SPSS).
The results of the statistical analysis of the data collected through the questionnaire tool prepared for this purpose showed that the necessity of applying the secrecy to achieve the goals of the banks under study.
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Laela, Sugiyarti Fatma, Hilda Rossieta, Setyo Hari Wijanto, and Rifki Ismal. "Management accounting-strategy coalignment in Islamic banking." International Journal of Islamic and Middle Eastern Finance and Management 11, no. 4 (November 12, 2018): 667–94. http://dx.doi.org/10.1108/imefm-04-2017-0088.
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Purpose This paper aims to examine the effect of management accounting–strategy coalignment on the maqasid Shariah-based performance of Islamic banks in Indonesia. The study also examines the role of the corporate life cycle of Islamic banks in influencing the relationship between management accounting–strategy coalignment and performance. Design/methodology/approach Management accounting practices, management control systems, strategy and maqasid Shariah-based performance are measured using questionnaires which were distributed to 97 directors and heads of Islamic banks. The model of this study is analyzed using structural equation model. Findings This study finds that the coalignment between low cost-oriented strategy, strategic management accounting practices and mechanistic management control system has positive impact on improving maqasid Shariah-based performance. However, this study is unable to verify that corporate life cycle strengthens the positive relationship between management accounting–strategy coalignment and performance. Research limitations/implications Limited indicators of management accounting practices in this study illustrate less comprehensive management accounting practices. Further studies may add other relevant management accounting as described by the International Federation of Accounting Committee to provide a more comprehensive management accounting practices. Practical implications This study provides recommendations to the management of Islamic banks to design management accounting practices and management control systems that fit to their strategic orientation. Originality/value This paper fulfils limited empirical studies on management accounting practices and strategy in Islamic banking industry.
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Kaur, Baljeet, and Rashmi Bansal. "Green Banking Practices of HDFC bank : A Case Study." ANUSANDHAN – NDIM's Journal of Business and Management Research 2, no. 1 (February 29, 2020): 26–40. http://dx.doi.org/10.56411/anusandhan.2020.v2i1.26-40.
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Banking sector is one of the chief economic factors that effects industrial and economic growth of any country. As in the industrial sector, banking is one of the main stakeholders that can face credit risk and liability risk and its quality of assets and rate of return can be influenced by the environmental effects in the long run. In view of this, banks have to play a positive role to go green and inculcate the environmental and ecological factors in their policies. Green banking strategies mean promoting environment-friendly practices and reducing carbon footprint in the day to day banking activities. Some banks in India including the private bank HDFC have developed several green banking initiatives. By adopting these practices, the customers as well as the banks employees can contribute a lot towards the environment. This paper aims to highlight the green banking initiatives introduced by HDFC in Delhi which may help identify the possible gaps in the green initiatives in the banking sector in India. The collection of data was done through a structured questionnaire using SPSS technique. The study found that Green banking initiatives have direct and positive impact on the environment because doing these practices; customers can save energy, fuel, paper, water, time as well as money. The common people are yet to come forward to follow these practices due to lack of the awareness.
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Kontopodi, Eva, Sertac Arslanoglu, Urszula Bernatowicz-Lojko, Enrico Bertino, Maria Enrica Bettinelli, Rachel Buffin, Tanya Cassidy, et al. "“Donor milk banking: Improving the future”. A survey on the operation of the European donor human milk banks." PLOS ONE 16, no. 8 (August 19, 2021): e0256435. http://dx.doi.org/10.1371/journal.pone.0256435.
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Background Provision of donor human milk is handled by established human milk banks that implement all required measures to ensure its safety and quality. Detailed human milk banking guidelines on a European level are currently lacking, while the information available on the actual practices followed by the European human milk banks, remains limited. The aim of this study was to collect detailed data on the actual milk banking practices across Europe with particular emphasis on the practices affecting the safety and quality of donor human milk. Materials and methods A web-based questionnaire was developed by the European Milk Bank Association (EMBA) Survey Group, for distribution to the European human milk banks. The questionnaire included 35 questions covering every step from donor recruitment to provision of donor human milk to each recipient. To assess the variation in practices, all responses were then analyzed for each country individually and for all human milk banks together. Results A total of 123 human milk banks completed the questionnaire, representing 85% of the European countries that have a milk bank. Both inter- and intra-country variation was documented for most milk banking practices. The highest variability was observed in pasteurization practices, storage and milk screening, both pre- and post-pasteurization. Conclusion We show that there is a wide variability in milk banking practices across Europe, including practices that could further improve the efficacy of donor human milk banking. The findings of this study could serve as a tool for a global discussion on the efficacy and development of additional evidence-based guidelines that could further improve those practices.
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Sohail, Aamir, Ahmad Saeed, and Nazakat Khan. "GREEN FINANCE BRIDGES THE GAP: IMPACT OF GREEN BANKING PRACTICES ON ENVIRONMENTAL PERFORMANCE." SEPTEMBER 39, no. 03 (September 29, 2023): 381–92. http://dx.doi.org/10.51380/gujr-39-03-10.
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The objective of this research is to examine significant influence of green banking practices on the environmental performance of banks, while also exploring the intermediary role of green finance. Iplementation of green banking practices, which include employee-related, operation-related, and customer-related initiatives, significantly influences environmental impact of banks. It is crucial for understanding the intricate relationship amid these practices and their impact on environmental performance in framework of sustainable banking. In order to accomplish these aims, thorough empirical investigation was undertaken. Research used a standardized questionnaire survey method to gather data from a heterogeneous sample of the banks operating in different geographical areas. Study used statistical methods, namely regression analysis as well as mediation analysis, to investigate the associations and mediation effects within conceptual framework. Results of study are statistically significant. Research revealed a significant mediating influence of green financing on the relationship between green banking practices and the environmental performance of banks. This highlights the crucial role of funding in translating sustainable activities into measurable environmental results.
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ROY, E. RUSHIT GNANA, and P. JEGAN. "Hrm Practices In Commercial Banks: A Discriminant Analysis Among Public And Private Sector Banks." Think India 22, no. 2 (October 31, 2019): 166–73. http://dx.doi.org/10.26643/think-india.v22i2.8715.
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Since the banking industry is a knowledge based industry it is essential to transfer the staff recruited into valuable human resources for the banks. It can be done by the provision of adequate skills, knowledge, competences and talents to the human resources. The investment n HRM is essential and inevitable in banking industry, since the return on investment on HRM practices for higher than its cost. With this background, that rate of implementation of HRM practices is banks was analysed. The study revealed that implementation of HRM practices at private sector banks are higher compared to public sector banks. The public sector banks should realise the importance of implementation of HRM practice in order to enrich their performance.
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ROY, E. RUSHIT GNANA, and P. JEGAN. "HRM Practices In Commercial Banks: A Discriminant Analysis Among Public And Private Sector Banks." Think India 22, no. 2 (October 30, 2019): 214–21. http://dx.doi.org/10.26643/think-india.v22i2.8722.
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Since the banking industry is a knowledge based industry it is essential to transfer the staff recruited into valuable human resources for the banks. It can be done by the provision of adequate skills, knowledge, competences and talents to the human resources. The investment n HRM is essential and inevitable in banking industry, since the return on investment on HRM practices for higher than its cost. With this background, that rate of implementation of HRM practices is banks was analysed. The study revealed that implementation of HRM practices at private sector banks are higher compared to public sector banks. The public sector banks should realise the importance of implementation of HRM practice in order to enrich their performance.
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Bashir, Mohamed Sharif, and Abdo Aglan Babiker. "EVALUATION OF SHARI'AH GOVERNANCE PRACTICES IN SAUDI ARABIAN BANKS." Malaysian Journal of Syariah and Law 11, no. 2 (November 5, 2023): 243–70. http://dx.doi.org/10.33102/mjsl.vol11no2.480.
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Islamic banking is witnessing a significant increase in worldwide demand for its products alongside the increased interest in Sharīʿah governance, which is an essential means of ensuring that the products and activities of Islamic banking institutions fully comply with Sharīʿah (Islamic law), meet customer needs, and increase their competitiveness in both local and international markets. The aim of this paper is to evaluate Sharīʿah governance practices in Saudi Arabian banks and also examine the level of adherence to Sharīʿah governance principles, institutional frameworks, regulatory standards, and procedures within Saudi banks. This paper employs a descriptive analysis approach, while the data were collected through a questionnaire survey from 95 members of Sharīʿah advisory boards, Sharīʿah groups, and Sharīʿah governance committees in 11 banks operating in Saudi Arabia. A regression analysis was performed to estimate relationships between the level of compliance and commitment to Sharīʿah governance in Saudi banks as a dependent variable, and the implementation of Sharīʿah governance, its dimensions, and the availability of implementing procedures of Sharīʿah governance as independent variables. The findings confirm the existence of variations between banks at the level of implementing Sharīʿah governance principles and standards. The dimensions of Sharīʿah governance received varying levels of attention in the banks, with organizational structure ranking first, followed by the dimensions of responsibility and disclosure, and finally, control, auditing, and accountability. The study reveals disparities in the implementation levels of Sharīʿah governance between banks with full-fledged Sharīʿah compliance and conventional banks that offer Islamic windows. Additionally, the study indicates differences in the adequacy of implementing procedures for Sharīʿahgovernance principles and standards in both types of Saudi banks, attributed to variations in bank size, product type, and organizational structure. The results of the regression analysis demonstrate that the implementation of Sharīʿah governance dimensions and the availability of implementing procedures have a statistically positive effect on the level of commitment to Islamic banking and Sharīʿah governance. The paper suggests a necessity for training personnel in Islamic banking, activating the role of Sharīʿah compliance units, and developing the Sharīʿah governance framework in Islamic banking operations in Saudi Arabia.
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Khaer, Misbakhul, and Saiful Anwar. "Encouraging Sustainability and Innovation: Green Banking Practices Growing in Indonesia." EKSYAR : Jurnal Ekonomi Syari'ah & Bisnis Islam 9, no. 2 (December 18, 2022): 173–82. http://dx.doi.org/10.54956/eksyar.v9i2.422.
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This article examines developing green banking practices in Indonesia, intending to encourage sustainability and innovation in the banking sector. Green banking is an approach that integrates environmental and social factors in banking operations to reduce negative impacts on the environment and increase contribution to sustainable development. The method used is a library with a descriptive approach. The findings in this study indicate that green banking or environmentally friendly banking has a significant role in creating a clean and sustainable banking environment. By adopting green banking principles, banks can better manage environmental risks, increase environmentally friendly financing portfolios, and implement sustainable business practices. In addition to direct benefits such as reducing credit risk and improving asset quality, green banking can also potentially increase corporate value and bank reputation in the eyes of the public and investors. To encourage the implementation of green banking, banks in Indonesia need to comply with relevant regulations and continue to promote environmentally sound practices. Thus, green banking and green banking can become a potent symbol of ecological awareness worldwide.
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Rehman, Ramiz, and Inayat Mangla. "Corporate Governance and Performance of Banking Sector in Pakistan." Journal of Finance Issues 10, no. 1 (June 30, 2012): 130–39. http://dx.doi.org/10.58886/jfi.v10i1.2313.
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This paper investigates the impact of corporate governance variables on the financial performance of banking sector in Pakistan. For this purpose, the data of financial performance and corporate governance variables of thirty banks are used for the period of 2001-2009.The panel regression analysis is applied to determine this effect, firstly for the whole banking sector, and secondly for different types of banks. These types are categorized on the basis of their ownership and banking practices. The results show that there is a significant impact of corporate governance variables on the performance of overall banking sector in Pakistan. But there is no significant impact of corporate governance practices on the performance of foreign banks
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GAMIT, PROF TEJUBHAI B. "BANK OF BARODA: A STUDY OF GREEN BANKING PRACTICES IN INDIA." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 07, no. 09 (September 1, 2023): 1–11. http://dx.doi.org/10.55041/ijsrem25722.
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When pollution has become a matter of concern in the face of today's modern challenge and environment, the contribution of banks in this field remains to be seen and how our banks can contribute to solving this problem is a matter to think about. Banking practices are environmentally friendly with emphasis on banking operations that cause minimal pollution. If we think in the context of our country of India, the Bank of Baroda has taken many environmentally friendly steps among the commercial banks in the public sector. The main objective of green banking is to maintain environmental awareness reduce carbon footprint and promote paperless transactions as part of the modernization of financial transactions. The main purpose of this research paper is to study the green banking practices adopted by the Bank of Baroda in India and to know what benefits it can have in terms of environmental protection. KEYWORDS: Green Banking, BOB, Environment Protection, Sustainable Development
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Rahmiati, Aulia, and Henri Agustin. "Pengaruh Dewan Komisaris Independen, Komite Audit, dan Kepemilikan Asing Terhadap Green banking Disclosure (Studi Pada Perbankan Di Indonesia Tahun 2017-2021)." Wahana Riset Akuntansi 10, no. 2 (November 30, 2022): 165. http://dx.doi.org/10.24036/wra.v10i2.119805.
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The purpose of this study was to examine the impact of independent commissioners, audit committees, and foreign ownership on the green banking disclosures of Indonesian banks in 2017-2021. The population in this study is banking in Indonesia in 2017-2021 and the sample in this study is 35 banks. The sample in this study was obtained by using purposive sampling method. The method used to assess green banking practices is using content analysis that refers to green banking disclosure indicators. Causality relationship between independent board of commissioners, audit committee, and foreign ownership and disclosure of green banking was tested using multiple linear regression analysis method. This study found that there was a significant effect between the audit committee on green banking disclosure practices in Indonesian banks and did not find any influence between independent commissioners and foreign ownership on green banking disclosure practices.Keyword: Independent Commissioners, Audit Committees, Foreign Ownership, Green banking
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Brahmaiah, Bezawada. "Credit Risk Management Practices of Indian Banking Industry: An Empirical Study." International Journal of Economics and Financial Issues 12, no. 2 (March 14, 2022): 67–71. http://dx.doi.org/10.32479/ijefi.12968.
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The primary objective of this paper is to examine the risk management techniques and practices of credit risk management followed by Indian commercial banks for the period from 2021-17 to 2020-21. The other objective is to compare risk management practices followed by the public sector banks (PSBs) and private sector of banks (PVBs). The study uses a sample of twelve banks consisting of six largest public sector banks (PSBs) and six largest private sector banks (PVBs) for the study. The sample accounts for 78 per cent of the banking business of the country. The study finds that the scheduled commercial banks (SCBs) are facing credit risk, market risk and operational risk. The study finds that the credit risk management process and practices include risk identification, risk assessment, risk analysis, risk evaluation, risk monitoring and risk control. The study finds that private sector banks (PVBs) have better credit risk management practices as compared to that of public sector banks (PSBs). The PSBs have more NPAs than PVBs whereas PVBs have better asset quality and better profitability ratios than PSBs during the study period.
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Alandejani, Maha. "An Overview of Efficiency and Profitability in Islamic Banking: A Comparative Study between Islamic Banking and Conventional Banking." Social & Management Research Journal 19, no. 1 (February 28, 2022): 209–34. http://dx.doi.org/10.24191/smrj.v19i1.17675.
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Islamic banks are similar to conventional banks, but differ in some practices, financial contracts, and transactions. The functions and transactions of Islamic Banking and Finance (IBF) are based on Sharia principles, which involve risk sharing. Therefore, there is a significant difference in the applications of lending and investment between Islamic and conventional banks. This review paper aims to map IBF- measurement that related to efficiency and profitability issues, by presenting briefly the nature of IBF, including the prohibition of interest and gambling, with the definition of IBF instruments. It reviews the most valuable existing empirical literature that investigated the efficiency and profitability of Islamic banking, which shows that the business model and techniques for measuring performance in Islamic banking does not differ significantly from that of conventional banking. This paper also discusses the critical terms in the financial methods that are used in IBF studies. It is found that the objectives of profit maximisation and cost minimisation are not vital for IBF and the performance of Islamic banks should be evaluated with indication of the level of promoting socio-economic development. Our finding concludes that, the social objectives of Islamic banks can be achieved after adapting new structures, not only for Islamic banks, but also for central banks, and banking regulations
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Bukhari, Syed Asim Ali, Fathyah Hashim, and Azlan Amran. "Green Banking: a road map for adoption." International Journal of Ethics and Systems 36, no. 3 (June 29, 2020): 371–85. http://dx.doi.org/10.1108/ijoes-11-2019-0177.
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Purpose The purpose of this study is to propose Green Banking best practices for the adoption of this business construct based on the dimensions of environment, social and governance (ESG). This paper proposes a number of green practices under the ESG dimensions that can be adopted by individual banks at any stage of Green Banking adoption. It provides tactics for implementing this business construct that can serve as a tool for regulatory authorities forming Green Banking guidelines or policies for adoption. Such research has not been undertaken up until now. Design/methodology/approach The Green Banking adoption model is based on the concept of human ecology in which the inter-dependency and inter-connectivity of the variables impacting the phenomenon of environmental sustainability. These influencing variables are, in turn, connected with the natural environment. In the proposed model, the variables of ESG are inter-connected and impacting the natural environment as well. The proposed best practices have been derived from the Green Banking practices of the global industry leaders and Green Banking regulations of developed and developing countries. It can be beneficial to the stakeholders, as it proposes a step-by-step guide to Green Banking adoption that can be followed either sequentially or in parallel by the banks. Findings Green Banking adoption can be achieved by banks through implementing certain practices in either sequential or parallel manner. The adoption process depends on the various external and internal environmental dependencies. The Green Banking adoption practices can be broken down in three areas, i.e. ESG, allowing the construct optimal depth of coverage and complexity. Originality/value The literature on Green Banking is steadily increasing but a lack of research exists in the area of Green Banking adoption. Currently, limited literature exists that can provide the banking industry or the regulatory authorities with a framework or guideline to adopt Green Banking.
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Qazi, Tehmina Fiaz, Abdul Aziz Khan Niazi, Madiha Saleem, Abdul Basit, and Muhammad Umair Ahmed. "Evaluation of Green Banking in Pakistan Using Framework of the Central Bank: Employing TOPSIS Approach." Bulletin of Business and Economics (BBE) 12, no. 4 (December 25, 2023): 159–68. http://dx.doi.org/10.61506/01.00100.
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The purpose of current research is to evaluate commercial banks’ performance regarding Green Banking (GB) practices using State Bank of Pakistan’s (SBP) framework as criteria. The study aims to rank and compare commercial banks with respect to their acceptance, adoption and implementation of green guidelines issued by SBP. The research design comprises of systematic review of literature, data extraction and analysis. Literature review consists of overview of GB practices in global banking industry as well as local industry of Pakistan. SBP has issued guidelines and required its commercial banks to transform banking practices towards green practices as a step towards sustainable green economy. The study is cross-sectional; the data collection involves content analysis of annual reports of commercial banks of Pakistan for the year 2021. Out of total forty-one banks, fourteen banks are shortlisted, using purposive sampling method, that have disclosed information about their GB practices in their annual reports. Analysis is performed using Multi-Criteria Decision Making technique (MCDM) of ‘Technique for Order Preference by Similarity to Ideal Solution’ (TOPSIS). As per findings, Habib Bank Ltd. is at the top of bank rankings, Allied Bank is at the second and Soneri Bank is at the third rank in initiating, implementing, disclosing and obtaining positive outcomes out of their green banking initiatives. The study has implications for regulators, policy makers and practitioners. It can fill the gap in literature by adding a discussion on an important topic that is being ignored by previous researchers. The regulatory institution (i.e. SBP) can learn performance of its banks on GB guidelines. The practitioners can evaluate themselves on green practices scale and learn on how to improve their practices to perform better ahead of competitors.
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Dew, Kurt. "The dance of duplicity in emerging markets: Using bank regulation and deposit insurance protection to enrich the elite." Risk Governance and Control: Financial Markets and Institutions 1, no. 1 (2011): 37–51. http://dx.doi.org/10.22495/rgcv1i1art3.
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We seek to identify the culpability of banks in resource misallocation in Mexico, Thailand and Turkey. Specifically we provide evidence of an agency problem in the government and banking systems of the three countries. Where governments pass laws and regulations consistent with modern capitalism for the purpose of deceiving investors and others, the door is opened to the use of deposit insurance and repeated promises of regulatory reform to transfer wealth from the efficient to the corrupt.
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Tandukar, Heena, Niranjan Devkota, Ghanashyam Khanal, Ihtsham Ul Haq Padda, Udaya Raj Paudel, Udbodh Bhandari, Kabita Adhikari, and Seeprata Parajuli. "An Empirical Study in Nepalese Commercial Bank’s Performances on Green Banking: An Analysis From the Perspective of Bankers." Quest Journal of Management and Social Sciences 3, no. 1 (June 10, 2021): 49–62. http://dx.doi.org/10.3126/qjmss.v3i1.37591.
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Background: Becoming environmentally viable, lately, ‘Going Green’ has been a popular expression for both worldwide banking and financial areas just as for the overall population. Green banking as a piece of going green is another method of playing out the financial organizations thinking about the clean natural issues and corporate social duty of banks. Objectives: This paper tries to investigate banker’s overall arrangement and elements influencing their viewpoint on green banking performances. Method: The information was gathered between June–October 2019 from various banks in Kathmandu valley, Nepal. The sample of 326 financial representatives has been gathered by utilizing a purposive sampling technique. Collecting primary and secondary data, this study utilizes an explanatory research design that assesses the causal relationship among reliant and free factors. The paper utilizes descriptive and inferential techniques for assessment. For understanding green financial mindfulness of the bankers, an index has been calculated. Result: The outcomes show that large numbers of the bankers are less mindful of green financial practices in their banks, while just 5% of respondents know about green banking practices. The Probit regression results uncover that education, preparing for green banking, fixed expense, client fascination, related parties’ directions, and security of the climate have critical and constructive impacts on green financial practices in banks. Conclusion: All in all, for the selection of green financial practices, most importantly, banks ought to provide training to their employees and offer effective online services to their clients.
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Adhikari, Shankar Nath. "Exploring the effects of E-Banking Products and Services on Conventional Banking Transactions in Nepalese Commercial Banks." Nepalese Management Review 20, no. 1 (April 12, 2024): 103–23. http://dx.doi.org/10.3126/tnmr.v20i1.64743.
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This research investigates the growing scenery of E-Banking Products and Services within Nepalese Commercial Banks and their impact on conventional banking transactions. In the context of global financial sector transformations driven by technology, this study seeks to provide insights into the specific implications for Nepal's banking industry.
To achieve this, the research employs a comprehensive framework, analyzing the range of E-Banking Products and Services currently offered by Nepalese Commercial Banks. It describes e-banking as the ATM banking, Internet banking and Mobile banking and their impacts on conventional banking transactions within Nepalese Commercial Banks. A mixed-methods approach is applied for this research to understand how E-Banking products and services affect conventional banking transactions in Nepalese Commercial Banks.
Ultimately, the objective of the research is to offer valuable insights into the complex interplay between E-Banking and conventional banking transactions in Nepalese Commercial Banks. By enhancing our understanding of this dynamic background, the study intends to provide practical recommendations and strategies for banks to influence the benefits of E-Banking while mitigating potential drawbacks. This research contributes to the broader discussion on e-banking technology adoption and its implications in emerging economies and banking practices.
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Chen Tia, Sri Hasnawati, and Ahmad Faisol. "The Impact of Green Banking on Profitability (Study on Banking Sector Listed on Indonesia Stock Exchange (IDX) Period 2016-2022)." International Journal of Asian Business and Management 2, no. 6 (December 12, 2023): 887–900. http://dx.doi.org/10.55927/ijabm.v2i6.7075.
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The objective of this study is to determine the impact of green banking on profitability of banks in Indonesia. The sample of this research is the Indonesian banking sector during the period 2016 to 2022. The data utilized in this study were obtained from secondary sources, specifically from 9 banks. In total, there were 63 observations. The measurement of profitability ratio is conducted through the utilization of Return on Asset (ROA). The study using data panel analysis resulting green banking using 21 reported items of Green Banking Disclosure Index positively have impact on profitability of banks. It implies that the increasing green banking practices will increase the profitability of banks, highlighting the use of the separate green banking index measurements outside of the total green banking index might be considered by future researchers
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Torre Olmo, Begoña, María Cantero Saiz, and Sergio Sanfilippo Azofra. "Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk." Sustainability 13, no. 3 (January 26, 2021): 1298. http://dx.doi.org/10.3390/su13031298.
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The financial crisis seriously damaged the reputation of the banking sector, as well as its profitability and risk of insolvency, which led many banks to adopt a sustainable approach aimed at balancing long-term goals with short-term performance pressures. This article analyses how sustainable banking practices affect the profitability and the insolvency risk of banks. Moreover, we examine how sustainable strategies determine the effects of market power and efficiency on bank profitability. We used a two-step System-GMM to analyze an unbalanced panel of 1236 banks from 48 countries over the period 2015–2019. We found that sustainable banking practices increased profitability, and market power was an important determinant of profitability among conventional banks, but not among sustainable banks. Higher levels of cost scale efficiency led to greater profitability for both sustainable and conventional banks. However, there was no significant relationship between sustainable banking and insolvency risk. These results indicate that the traditional determinants of bank profitability are not relevant in explaining the superior profits of sustainable banks, which suggests the emergence of a new paradigm related to sustainability among the drivers of bank profitability.
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Islam, Md Ariful, Kh Fahim Hossain, Mahmudul Hasan Siddiqui, and Salahuddin Yousuf. "Green-Banking Practices in Bangladesh-A Scope to Make Banking Green." International Finance and Banking 1, no. 1 (April 8, 2014): 1. http://dx.doi.org/10.5296/ifb.v1i1.5161.
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In Bangladesh, it is not blamed to pollute environment compare with other countries. Amount of CO2 emission is also very low comparing with other countries. But we are the victims of this CO2 emission or environmental pollution. So, to survive ourselves we should incorporate this green banking for the sake of our people. As early as possible the banking community should commence its activities. Government should take necessary steps to enforce existing environmental regulations and formulate appropriate rules to ensure ―Pollute Pays Principle‖ in the country. The Central bank of Bangladesh can play a pro-active role in formulating a national level ―Green Credit Policy‖ and creating a sound incentive structure for performing ER practices by banks. Much more is expected from the civil society organizations in the form of awareness development, research activities and business monitoring. ‗Consumer Awareness‘ is the area where Bangladesh needs remarkable change, because green banking is largely driven by consumer behavior and consumption patterns. For rapid change among consumers and business, a collective endeavor of government, media, NGOs, and banks will be required. An isolated effort by banking communities may not bring much. The success of the proposed framework would depend upon the pro-active role of all stakeholders and a sound incentive structure.
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Mittal, Divya, and Shiv Ratan Agrawal. "The effects of traditional practices on modern banking system." International Journal of Bank Marketing 34, no. 4 (June 6, 2016): 476–500. http://dx.doi.org/10.1108/ijbm-01-2015-0008.
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Purpose – The purpose of this paper is to identify the traditional practices in the modern banking system (MBS) and examine the effects of these on employee response, customer reactions and customer loyalty, in the context of public sector banks in India. The study also investigates the effects on customers of employees’ use of traditional banking practices in the MBS. Design/methodology/approach – A total of 460 usable responses were gathered from customers of seven public sector banks in Bhopal (MP), India. The study scales were refined and validated by exploratory factor analysis and confirmatory factor analysis. Findings – The results indicated that the MBS utilising traditional practices (MBSTP) significantly influences unfavourable employee responses, customer reactions and loyalty. In addition, employee responses in MBSTP motivate and generate unfavourable reactions of customers, which further influence their loyalty adversely towards public sector banks. Practical implications – The identified traditional practices with MBS are expected to bring clarity to the issue of employee response, customer reaction and loyalty. This would help the management of banks. Originality/value – The results of the analysis indicated that public sector banking services are facing the internal challenges by its own service processes and employees’ behavioural intentions.
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Gaies, Brahim. "Banking sector openness, a path to social responsibility? Evidence from Southern European banks." Economics and Business Letters 12, no. 4 (December 15, 2023): 284–95. http://dx.doi.org/10.17811/ebl.12.4.2023.284-295.
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Since the global financial crisis of 2008, the practices of the European banking sector have come under public scrutiny.Considered as a source of external shocks, the opening of European banking markets is particularly questioned.Following this trend, this article aims to provide an original study by examining the effect of banking sector openness onbanks' social responsibility. It focuses on the case of Southern European banks, which are the most vulnerable in theEuropean system. The study highlights a significant effect of banking sector openness on banks' social performance.However, the financial performance of banks moderates this effect.
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Azam Ali, Azam Ali. "IFSB Standards Adoption and Its Impact on Islamic Banking Practices." journal of king Abdulaziz University Islamic Economics 35, no. 2 (July 1, 2022): 55–76. http://dx.doi.org/10.4197/islec.35-2.4.
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Ibrahim, Omar H. "Availability of Modern E-Banking Services and its Impact on Customer Satisfaction." Koya University Journal of Humanities and Social Sciences 6, no. 1 (November 30, 2023): 121–35. http://dx.doi.org/10.14500/kujhss.v6n1y2023.pp121-135.
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The banking sector is one of the most important pillars of any economy around the world, as it is the main source of financing and facilitating daily financial transactions. In Iraq, particularly in the Kurdistan Region, commercial and Islamic banks are progressing slowly. Since technology is a destiny rather than a choice, banks have to facilitate their services and reach customers faster and easier through e-banking practices. This study is attempting to shed light on the impact of these services combined (E-banking) on customer satisfaction in its five dimensions: security, privacy, cutting costs, simplicity & speed, and convenience. In addition, it intends to find out whether the commercial banks in Duhok provide up-to-date electronic services. To conduct this, questionnaires were used to gather responses from customers and managers of three commercial banks in Duhok. The statistical program (SPSS) is used to analyze (132) questionnaires. Results showed that there are modern e-banking practices performed by all three banks. Moreover, it demonstrated that customers are satisfied with these services, yet, on different levels. This study included some recommendations such as security considerations, improving marketing techniques, mobile banking is a core element in e-banking. In addition, customers should be more connected to up-to-date e-services as an international request.
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Valibeigi, Mehrdad. "Banking and Credit Rationing Under the Islamic Republic of Iran." Iranian Studies 25, no. 3-4 (1992): 51–65. http://dx.doi.org/10.1017/s0021086200015711.
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Since the Iranian revolution of 1979, the Iranian banking system and practices have changed significantly. Shortly after the revolution, according to a decree by the Revolutionary Council, banks and insurance companies were nationalized. In 1980 and 1982 legislation was passed to convert all banking practices to Islamic interest-free banking. Despite such significant developments in the Iranian banking system, this area of research has not been given its due attention by the scholars in the field. It is the purpose of this study to describe the process of post-revolutionary change in the Iranian banking system and outline the new trends in credit rationing practices after the revolution.It will be argued here that the Islamization of the banking system did not result in the so-called abolition of interest from the financial system; in practice the banking system continues to pay interest—now called “profit“—to savings account depositors, and standard interest-bearing financial contracts continue to be utilized by the banks under new Islamic terms.