Bank Performance

The aim of this study is to examine the effect of bank-specific and macroeconomic factors of Tunisian bank profitability. We apply a dynamic panel model, using Generalized Methods of Moments (GMM) system for 10 Tunisian commercial banks, during the period 1998-2017. The empirical results reveal a high degree of persistence in bank performance. The estimation of a dynamic panel model by the GMM method allowed us to observe that the internal variables; capital, cost/income ratio and ownership play a significant determinant role in bank performance, measured by ROA ROE, NIM ratio. Private banks seem more profitable than public banks. Also, industry-specific factors, such as concentration and the size of the banking system, have a negative and significant effect on performance. However, inflation seems to negatively affect the net interest margin of the bank and the corruption coefficient (CI) is positive and statistically significant only when the performance of banks is measured by the ROA.

This study empirically examines the effects of bank-specific characteristics, bank governance, financial market structure, and macroeconomic conditions on Moroccan banks' performance. Moroccan banks' performance is measured by return on assets (ROA) and return on equity (ROE). For this aim, panel data method (fixed effects model) is applied to data which is obtained from a sample of 6 Moroccan banks' financial statements during the period 2010-2016. The findings show that only operating management efficiency represented by the cost-to-income ratio (COST) is highly significant and negatively related to bank's performance. Also, the results indicate that bank size (SIZE) is positively related to ROA and statistically significant. Nevertheless, the effects of the other variables are statistically insignificant. The findings suggest that future studies could be include more dependent and independent variables to explain Moroccan banks' performance.

What determines whether banks are operating effectively? This study focused on critically analyzing organizational effectiveness between banks in Zimbabwe. Empirical findings from emerging economies show that foreign-owned banks are more profitable when compared to their locally-owned counterparts (Berger et al., 2009; Demirguc-Kunt and Huizinga, 2002). The studies pointed out that the locally-owned banks are relatively less efficient and less profitable as a result of the following reasons: low market share, scarcity of financial resources, poor market capabilities, and poor access to capital markets. Studies in developed economies indicate less profitability and efficiency among foreign-owned banks as compared to locally-owned banks (Berger et al., 2000; Claessens et al., 2001). This study considers organizational effectiveness in terms of profitability, growth and long-term sustainability. The two sampled banks were primarily examined using information from Bankscope database. The Bankscope database was used because the database is considered one of "the most comprehensive global database for banks' financial statements, ratings and intelligence" (Bureau van Dijk, 2016). The study found that there are no significant differences between the financial performance of banks in Zimbabwe. The banks in Zimbabwe are also adopting the models, frameworks, and methodologies of determining organizational effectiveness.

This research study seeks to measure the impact of e-banking on commercial banking operations. With our case study being UBA Bank Cameroon, we will set out to examine the relationship between e-banking services and the profitability of the banking institution and also to identify the difference between those who use E-banking Services and Counter Service. We will use the T-test model and a simple correlation model to establish a relationship between e-banking services and the profitability of the banking institution whilst also establishing the difference between customers who use e-banking services and customers who use the counter service. In conducting this research, we will use both primary and secondary data. Furthermore, quantitative and descriptive methods of analysis will be adopted to examine the impact of e-banking services on the profitability of the banking institution.

This study investigated pricing strategy, customer satisfaction and banks performance: evidence from Ekiti State, Nigeria. The study used qualitative research design of survey method involved primary data generated through administered questionnaires from five commercial banks in Ekiti State. The model for the study has pricing strategy and customer satisfaction as independent variables while the dependent variable is banks performance using Ordinary Least Square (OLS) regression analysis the study revealed that pricing strategy serves as signals in markets, provide information and therefore influence supply and demand of financial products. Furthermore, customers identify pricing as an area where they wish to see improvements and regard these as a suitable means of increasing satisfaction thus contribute significantly to the performance of banks. Based on this result, the study recommended that, financial institutions especially banks should set appropriate pricing mechanism, ensuring that the value of products are commensurate with the fees charged, for this, customers' satisfaction will be sustained thus reducing the incidence of switching to other banks. Also, banks should awake to new technology that will ensure optimum service delivery at a reasonable and profitable cost of services to their consumers. 1.0 INTRODUCTION In this current era of hyper-competition, financial service industries appear to focus more and more on customer satisfaction. Attempt to deviate from this key factor can ultimately lead to customers switching behaviour (Akpan, 2010). Much recently, the tightening of competitive conditions in banking industries and the increasing intensification of marketing that have become more globalized and the development of information and telecommunication technologies have contributed to a large extent to the rapid development and evolution of products and services intended to satisfying the needs and wants of the customers (Ngambi & Ndifor, 2015). Banks provide several services for which customers pay to enjoy. Attainment of a bank's specific goals is therefore hinged on four principal strategies of effective marketing of banking services viz: product, pricing, promotion and place strategies. Pricing is an integral part of the product packaging. The bank manager is confronted with taking decisions on the type of pricing strategy that will be appropriate for a particular service in a particular situation and at a given time to reach a given set of objectives. He has to introspect whether the size of a deposit made by a customer merit pricing separately or does interest rates play an important role in customers' long-term relationships (Cetina & Mihail, 2008). This pricing strategy is more problematic before the deregulation of Nigeria financial system, when financial institutions are of the habit of charging arbitrary rate, even with rate of lending that are not symmetric with deposit rate. The era of bank consolidation in Nigeria that dated back since 2004 was to drive down the cost of credit which contributed to the high cost of production in the economy. Nonetheless, with this aggressive competition for customers and deposit mobilisation among Nigerian banking institutions, appropriate pricing for bank services has become increasingly important if the bank is to attain its corporate goals and objectives. Furthermore, banks' services are essentially intangible and customized in nature, which makes the pricing strategies for bank's services different from pricing of tangible products. Such price must be in conformity with the other four Ps of the marketing mix. The importance of price to both the seller and buyer of bank services must be distinguished. Cetina and Mihail (2008) identified the importance of price (of bank services) to the seller (bank) as considerations of cost of service, income from service, short and long-term profitability, ability to adapt to market requests and to the buyer of bank services (customers). Wruuck (2013) is also of the view that pricing matters to companies for these reasons: it impacts on customer satisfaction, profitability, play a central role in the consideration to switch banks behaviour and serve as a major area where they wish to see improvements and regard these as

Examination into portfolio management and bank performance was the core objective of the study, it however discussed the impact of loan risk analysis, loan risk diversification and loan risk monitoring on bank performance (Return on asset) in Nigeria. The study relied heavily on both primary and secondary sources of data collection. Primarily, data were obtained from portfolio management scale while the secondary source was obtained from Annual financial statement of account. Multiple and logit regression analyses were employed in analysing the data using SPSS 20.0. Empirically, the study found that loan risk analysis, loan risk diversification and loan risk monitoring positively and significantly affect bank performance in Nigeria. Based on this, the study concluded that loan portfolio management positively affects deposit money banks in Nigeria.

This paper test interrelationship between risk taking and profitability (ROAA) using two stage regression. We study 150 bank sample for 2008-2014 from Indonesia. Instrumented variable is total risk taking (RT) and the instruments are asset size, equity to total asset, loan asset ratio, loan loss reserve, efficiency, liquidity. For macroeconomic variables, we use economic growth, Central bank-rate (CBDR) and inflation rate (CPI). We find a positive relationship between risk taking (RT) and bank profitability (ROAA). Further, the relationship between risk taking (RT) and profitability (ROAA) is endogenous. The result confirms that bank's motivation to take more risk is to earn higher profit. In addition, capital ratio is negative to risk taking (RT) and profitability (ROAA). Interestingly, credit risk taking is negative due to the high correlation with a problem loan (LLRGL). The cost inefficiency is negative to bank's profitability. Finally, for improving profitability, bank's manager should manage the operation better such as reducing problem loan and improving cost efficiency as these actions are more effective than taking more risk taking (RT).

This research work examined the the effects of electronic banking on the performance of money deposit banks in Nigeria and five Guaranty Trust banks in Lagos, Nigeria were selected as the case study.
The chapter one was used to discuss the background of the study, and some potential statement of problems that necessitated this research work was made. Research questions as regard knowing the effects of electronic banking on the performance of money deposit banks in Nigeria were asked, and answers were provided by the study. The aims and objectives of the research were set up in this chapter and included; to establish the effect of mobile banking on performance of Money Deposit Banks in Nigeria; to establish the impact of electronic banking on profitability of the Money Deposit Banks in Nigeria; to determine the effect of automatic teller machine banking on performance of Money Deposit Banks in Nigeria and to examine effect of online banking on performance of Money Deposit Banks in Nigeria...

The banking sector in Malaysia suffered a bitter experience during the Asian financial crisis. Because of the crisis, many researchers across the globe attempted to better measure bank performance. This study highlights the evaluation of bank performance, including both domestic and foreign banks in Malaysia, using the Capital adequacy, Asset quality, Management competency, Earning quality, and Liquidity (CAMEL) framework for the period 2008 to 2012. Using regression analysis, the results of the study showed that capital adequacy, asset quality, earning quality and liquidity have a significant impact on performance of Malaysian banks. The outcome of this study is important to policymakers in assessing bank performance that could determine the direction of the future banking system in Malaysia.

Synergies arising from the increased efficiency, cost savings, economies of scale etc are the principal factors behind the voluntary amalgamations in the Indian banking sector. Even though, mergers are the major way to adhere to the regulatory requirements and the source of inorganic growth, the strategies adopted by the merging entities have to be critically analysed, because mergers seem to produce strategic and financial growth and also have considerable public policy implications. The merging partner’s strategical similarities and relatedness are very important in the synergy creation because the relatedness of the strategic variables have a significant impact on the bank performance. On the basis of existing literature, banks should be similar in some areas and dissimilar in some other areas in order to improve post merger performance. In this paper we use firm specific data to study the strategic similarities of bidder and target banks in the voluntary amalgamations in the Ind...

Electronic Banking has become the heart of banking sector, while banking industry is the heart of every robust economy. E-banking has revolutionized the lives of all individuals of present times and is considered to be a wave of information revolution after the agricultural and industrial revolution Internet banking, mobile banking, Automated Teller Machine, electronic funds transfer, and smart cards etc. are the services provided by banks under Electronic Banking. Through this research paper, an attempt has been made at examining the impact of electronic banking on the performance of Banks. Electronic Banking has resulted in reduction in transaction costs, increased productivity, increase in volume of deposits, increase in net operation margin and reduction of operational costs of the banks, thereby improving the efficiency in the banking operations. Through this paper, it has been found that Electronic Banking has tremendously improved the performance of banks.

Purpose: The study purport to investigate the effectiveness of internal control mechanisms, investigate whether evidence of agency problem is found among banks in Europe and determine how internal controls affect credit risk. Design/methodology: Panel data from 91 banks from 23 European Union countries were studied from 2008-2014. Hausman's specification test suggest the use of fixed effects estimation technique of GLS. Quantitatively modelled data on 15 variables covering elements of internal controls, objectives of internal controls, agency problem, bank and country specific variables were used. Findings: There is still high credit risk in spite of measures being implemented by the European Central Bank. Banks have individual entity factors that increase or decrease credit risk. The study finds effective internal control systems because objectives of internal controls are achieved and significantly determine credit risk. Agency problem is confirmed due to significant positive relation with credit risk. There is significant effect of internal controls on credit risk with specific variables as risk assessment, return on average risk weighted assets, institutional ownership, bank size, inflation, interest rate and GDP.-25-Intangible Capital – http://dx.doi.org/10.3926/ic.911 Research limitations/implications: Missing data prevented the use of strongly balanced panel. The lack of flexibility with using quantitative approach did not allow further scrutiny of the nature of variables. However, statistical tests were acceptable for the model used. The study has implications for management and owners of banks to be warry of agency problem because that provides incentive for reckless high risk transactions that may benefit the agent than the principal. Management must engage in actions that profile the company better and enhances value maximization. Rising default risk has tendency to impair corporate image leading to loss of reputational capital. Originality/value: The study provides the use of quantitative approach to measuring certain phenomena within the discipline of internal controls. The study adds to a previous study by same authors and confirming the agency problem in a different approach.

This study empirically examines the effects of bank-specific characteristics, bank governance, financial market structure, and macroeconomic conditions on Moroccan banks’ performance. Moroccan banks’ performance is measured by return on assets (ROA) and return on equity (ROE). For this aim, panel data method (fixed effects model) is applied to data which is obtained from a sample of 6 Moroccan banks’ financial statements during the period 2010-2016. The findings show that only operating management efficiency represented by the cost-to-income ratio (COST) is highly significant and negatively related to bank’s performance. Also, the results indicate that bank size (SIZE) is positively related to ROA and statistically significant. Nevertheless, the effects of the other variables are statistically insignificant. The findings suggest that future studies could be include more dependent and independent variables to explain Moroccan banks’ performance.

— This study examines the effect of revenue diversification across and within interest and non-interest income on bank stability and performance in Tunisian banks over the period 2001-2014. Using panel estimations and instrumental variables approach to handle the endogeneity problem of diversification variables. We find that revenue diversifications among and within interest and non-interest revenue generating operations boost bank profitability and stability. Our findings suggest also that the benefits from diversification are largest for banks with more shifts to nontraditional banking business lines (investment banking) while, absent for banks which follow cross-selling strategies of financial services. Keywords— bank performance, bank stability, interest income, non-interest income, Tunisian Banks.

Vietnam is now widely regarded as a rising economic star and the next economic dragon of Asia. Its banking system has played a key role in this stellar economic performance. Since 1990, Vietnam's banking system has undergone significant changes which saw its composition transformed from being state banks only to now being both state as well as private banks, and has performed generally well in terms of growth, profitability and stability. But is it efficient? We conduct a dynamic analysis of the level and trend of the cost and profit efficiency of the Vietnamese banking sector over the period 1995 to 2011 taking into account the Asian and Global Financial crises. We use the Data Envelopment Analysis (DEA) Windows Analysis approach and adjust for bank size in calculating the average efficiency score of the banking system. Our empirical findings show that the cost and profit efficiency of the Vietnamese banking system averaged around 0.90 and 0.75, respectively, with the state banks being more efficient than the private banks and with efficiency experiencing an upward trend over the analysis period. Moreover, we find that the Global Financial Crisis (GFC) and Asian Financial Crisis (AFC) did not significantly affect the efficiency of the whole Vietnamese banking system.

This paper presents the key role of corporate governance on the performance of banks in Iraq. This study aims to examine the relationship between board characteristics and bank performance by considering panel data of 24 banks for period 2005-2014 in Iraq. This relationship is estimated by using the panel OLS and regression technique. The findings reveal there is a significant positive relationship between board composition, board size and bank performance. Additionally, findings show that female board of directors is one of the reasons to make down the bank performance in Iraq. Taken together, this study finding recommended to regulators, in particular for the current financial reform of corporate boards.

Banking  industry  has  been  in  a  process  of  significant  transformation.  The
transformation in the banking industry is based on innovation in information technology.
Information  communication  technology  is  the  backbone  of  global  change  curve  by
internet  banking  in  Nigeria.  It  is  against  this  background  that  the  study  examined  the
relationship  of  internet  banking  on  performance  of  banks.  (A  case  study  of  Deposit
Money Banks in Nigeria). Using time series data of 2011  –  2015, the study employed
regression technique in the analysis of sourced data. Data were collected from secondary
sources  through  annual  reports  and  statistical  bulleting  of  central  bank  of  Nigeria.
Internet  banking  was  measured  using  the  total  value  of  internet  and  mobile  banking
while Bank performance was measured using return on total assets and return on equity
of  deposit  money  banks  in  Nigeria.  Return  on  equity  was  regressed  on  internet  and
mobile  banking,  and  return  on  total  assets  was  also  regressed  on  internet  and  mobile
banking  using  multiple  regression  technique.  The  study  revealed  that  positive
relationship exists between mobile banking and return on equity, and between internet
banking  and  return  on  assets.  While  on  the  other  hand  no  significant  relationship
between internet banking and return on equity, and between mobile banking and return
on assets. It is therefore, recommended that banks must offer numerous services through
mobile banking Banks and effective transaction through the internet.

In this article I examine the impact of the educational background in general and the
financial education particularly of Chief Executive Officers (CEOs) on bank performance of the
Tunisian resident banks. This area of research is important given that researchers in this area
argue that CEO characteristics such as educational orientation, age and functional career
influence the way business problems are perceived and the decision making process. The
information gathered from the annual reports of these banks and using a research questionnaire
shows that the educational path ways for most CEOs in the Tunisian bank system are financially
educated. This paper finds that CEO educational attainment, both level and field, matters for
bank performance. More specifically the regression analysis offer robust evidence that banks led
by CEOs with higher education outperform their peers. The main result of this paper is that CEO
financial education positively affects bank performance. Such CEOs improve performance when
he is longer serving, financially educated and when he delegates more decision making
authority. Our findings suggest that financial education delivers skills enabling CEOs to manage
increasingly larger and complex banks and achieve higher performance outcomes. But our
findings also partly support the view that engineering background also positively affects bank
performance.

Banking performance significantly impacts on economic growth. However, bank’s performance can be affected by remarkable factors. The present study aims to identify the bank-specific factors that determine the performance of the Indian commercial banks. Return on Assets and Return on Equity are considering the indicators of bank performance. A fixed effect and random effect panel regression models have been applied to a dataset of 39 commercial banks for the post-crisis period 2009 to 2017. Based on panel data analysis, results reveal that Capital adequacy ratio has a significant effect on return on assets while the insignificant impact on return on equity. Intermediation cost to total assets and Nonperforming assets were negatively influencing the performance of the banks. Non-interest income and Net interest margin showed a positive effect on banks performance. Credit deposit ratio, Investment deposit ratio, Cost of funds were not significant determinants of Indian commercial banks performance.

This paper presents the key role of corporate governance on the performance of banks in Iraq. This study aims to examine the relationship between ownership structure and bank performance by considering panel data of 18 banks for period 2005-2014 in Iraq. This relationship is estimated by using the pooled OLS and regression technique. The findings reveal there is a significant positive relationship between family ownership and bank performance. Additionally, findings show that insider ownership is one of the reasons to make increase the bank performance in Iraq. Taken together, the study findings recommended to regulators, in particular for the current financial reform o f corporate boards.

Purpose: The study purport to investigate the effectiveness of internal control mechanisms, investigate whether evidence of agency problem is found among banks in Europe and determine how internal controls affect credit risk.Design/methodology/approach: Panel data from 91 banks from 23 European Union countries were studied from 2008-2014. Hausman’s specification test suggest the use of fixed effects estimation technique of GLS. Quantitatively modelled data on 15 variables covering elements of internal controls, objectives of internal controls, agency problem, bank and country specific variables were used.Findings: There is still high credit risk in spite of measures being implemented by the European Central Bank. Banks have individual entity factors that increase or decrease credit risk. The study finds effective internal control systems because objectives of internal controls are achieved and significantly determine credit risk. Agency problem is confirmed due to significant positi...

Synergies arising from the increased efficiency, cost savings, economies of scale etc are the principal factors behind the voluntary amalgamations in the Indian banking sector. Even though, mergers are the major way to adhere to the regulatory requirements and the ...

This study examined the impact of interest rate spread on the performance of Nigerian banking industry for the period of 1986-2012. The study used OLS method of estimation to analyze the data generated from CBN statistical Bulletin and World Bank online data base. Testing for the properties of time-series, ADF test indicates that all the variables are integrated of same order I(1). The Co-integration test reviles that there exists a long-run relationship among the variables under consideration. The result shows that interest rate spread, negatively and significantly impact on bank performance in the long-run. Exchange rate and GDP was found to be positively and significantly affecting bank performance in Nigeria at the long-run. The result of the ECM indicates that 23.37 percent of the disequilibrium in the model will be corrected annually. Moreover at the short-run interest rate spread also negatively but insignificantly affect bank performance in Nigeria. Government should improve...

The standing study tried to analyze the role of board remuneration and board characteristics on the comparative performance of commercial and Islamic banking in Pakistan for the duration of 2006 to 2017. The data was collected in panel form for five leading conventional banks and five Islamic banks. Panel estimation techniques like fixed, random and pooled Ordinary least square were applied after conforming Hausman specification test and LM test. Using ROE and ROA, found that Director's Remuneration is positively and significantly affecting banking performance while Account holder's investment is positively and significantly affecting bank's performance for conventional banks only and Social contribution is significantly and positively affecting Islamic banking performance in Pakistan. Using Tobin's Q as a proxy of market performance indicates remuneration is negatively affecting conventional banking performance while Islamic banking market performance is negatively and significantly affected by board's composition and positively and significantly affected by social contribution. The policymakers should enhance the remuneration of their directors so as to boost their bank's performance. Moreover, the management of conventional banks should also consider the account holder's investment to enhance the accounting performance of their banks. The policymaker in Islamic banks can increase their performance (accounting as well as market) by enhancing the social contribution like Zakat. The discoveries of this comparative study are restricted to the banking sector of Pakistan.

Growth opportunities for investments form an important part of the bank's value. When investors determine value of the bank according to the bank's accounting report, it is necessary to consider the bank's expectations for growth investments. With the development of capital markets has been more pronounced role of performance measures at reflecting in the performance of banks through their existing content. Identify economic and financial accounting factors which influence from different directions on the value of bank shares are effective in creating positive conditions for increasing investment and financial credit absorption of bank. Taking into account the stated conditions, the purpose of this investigation is to investigate factors affecting the value of bank stocks. Needed data for research are collected from 25 active banks in Tehran Stock Exchange during 2008-2014. The data are analyzed using Excel, SPSS and E-views soft wares. Im, Pesaran, and Shin test is used to evaluate the reliability of variables, then F-Limer fitness tests and Hausman are reported and finally regression model corresponding to the research questions is fitted. Obtained results show that bank size, bank performance, inflation rate and bank credit risk have impact on market value of bank shares.

JEL: D53, E31, G32

Abstract
Abstract: Background and Objective: Moderate debt usage increases returns during economic boom, but high debt could decreases returns during economic recession. This study examines if there is a threshold debt level in the debt-returns relationship. Methodology: This study applies dynamic panel-threshold method to determine optimal debt level beyond which further increases in debt decreases returns. This study finds a threshold effect of 20.570% between debt ratio and return on equity. If the debt ratio is lower than 20.570%, a 1% increases in debt ratio increase return on equity by 0.128%. But, when the debt ratio is higher than 20.570%, a 1% increase in debt ratio decreases return on equity by 0.050%. Results: The results suggest that there is an optimal debt ratio of 20.570% at which point further increase in debt decreases return on equity. Conclusion: These results support the tradeoff theory, which suggests that there is an optimum debt level that maximizes returns.

Strategic issues are the core of the work of business organizations and occupy the main pillar of the work of commercial banks, whose fields of work and their competitive environment have developed. Strategic flexibility has become an urgent and binding issue for the commercial banking sector to keep pace with environmental changes and developments and raise the performance of banks to keep pace with environmental developments. The research aims to delve into two very important variables by doing The commercial banking sector, which is flexibility   The strategy and performance of the banks. Six commercial banks were chosen to be happy with the research (Baghdad, Iraqi investment, Gulf, investment development, Al-Mansour, Babylon). A member of bank managers, people's officials, and accountants in commercial banks. The data were subjected to statistical analysis by applying the statistical program (spss). The results demonstrated an impact on the overall level of the two variable...

Time to time, the banking sector around the world face difficulties and challenges whether it is a locally or internationally. The Iraqi banking sector has been shifted to a new era after the development and rebuilding the country since 2005, which acquired new technology - provide better services and products. Within the growth rate in Iraq as a whole and Kurdistan region in particular, a massive number of companies entered Iraq through opening its branches and offices in Kurdistan region. Kurdistan international bank was the first bank opened it’s headquarter in Erbil (the capital city of Kurdistan region) which benefit from the increased attraction to the region’s booming economy. But without practicing the strategic management, Kurdistan international bank could not reach its objectives, and with low experience in stock market, weak public relations, luck of coordination with financial institutes and intermediates, the bank suffered from low share traded percentage, low share vo...