Mohammad Salahuddin Chowdhury, FCA, Md. Ohidur Rahman
This research attempts to determine why individuals are unable to achieve their fundamental necessities despite increased financial and economic growth by investigating the relationship between financial and economic development with income disparity.Alternatively, this paper examines, from the viewpoint of Bangladesh, the implications of the Financial Kuznets Curve hypothesis, a theory established in three phases based on Kuznets’s seminal 1955 work. The time series data of nine elements over the 28 years from 1993-94 to 2020-21 has been used in the study. The study employs the Autoregressive Distributed Lag method (ARDL)and Granger Casualty Test to identify the effect of financial and economic development on income inequality in Bangladesh. Principal Component Analysis (PCA) has been used to develop indicators for financial development and economic development. The study reveals that financial and economic development affect income inequality in Bangladesh; in fact, they increased income inequality over the years in this country. This indicates that the FKC hypothesis holds in Bangladesh, as FKC states that Financial and economic development constitutes a converse U-shaped relationship with income inequality, meaning that income inequality increases during the primary phase and continues in the medium phase of development. As Bangladesh is going through a development phase, income inequality is increasing.
{"title":"Do Financial and Economic Development Have an Impact on Income Inequality? A Study on Bangladesh","authors":"Mohammad Salahuddin Chowdhury, FCA, Md. Ohidur Rahman","doi":"10.57143/jbfs130105","DOIUrl":"https://doi.org/10.57143/jbfs130105","url":null,"abstract":"This research attempts to determine why individuals are unable to achieve their fundamental necessities despite increased financial and economic growth by investigating the relationship between financial and economic development with income disparity.Alternatively, this paper examines, from the viewpoint of Bangladesh, the implications of the Financial Kuznets Curve hypothesis, a theory established in three phases based on Kuznets’s seminal 1955 work. The time series data of nine elements over the 28 years from 1993-94 to 2020-21 has been used in the study. The study employs the Autoregressive Distributed Lag method (ARDL)and Granger Casualty Test to identify the effect of financial and economic development on income inequality in Bangladesh. Principal Component Analysis (PCA) has been used to develop indicators for financial development and economic development. The study reveals that financial and economic development affect income inequality in Bangladesh; in fact, they increased income inequality over the years in this country. This indicates that the FKC hypothesis holds in Bangladesh, as FKC states that Financial and economic development constitutes a converse U-shaped relationship with income inequality, meaning that income inequality increases during the primary phase and continues in the medium phase of development. As Bangladesh is going through a development phase, income inequality is increasing.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"118 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132136794","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Islamic Insurance has recently been one of the most prominent Islamic financial services among the Muslim as well as non-Muslim community in the world. In Bangladesh, the service is also getting popularity to the people for the special features like risk-bearing by all of the participants, interest-free investment of funds etc. Considering the rapid growth of Islamic financial products worldwide and inadequate research on the limited reach of these services, this study aims to explore the factors affecting the customers’ purchase intention of Islamic insurance services in Bangladesh. The cross-sectional study has been conducted based on the Structural Equation Modeling (SEM) on the data collected through a self-administered questionnaire from 392 respondents. According to the study, it is revealed that compatibility, religiosity, customer awareness, reliability and trust have significant positive impact on customers’ purchase intention towards Takaful services in Bangladesh. The study result will help the service providers to look into the factors while tailoring their products and services. The policy makers should also know about the determinants so that they can formulate policies that promote the growth of the takaful industry and increase access to these products for consumers.
{"title":"Purchase Intention of Islamic Insurance: A Case Study of Takaful in Bangladesh","authors":"A. Sultana, Sabiha Farzana Moonmoon","doi":"10.57143/jbfs130103","DOIUrl":"https://doi.org/10.57143/jbfs130103","url":null,"abstract":"Islamic Insurance has recently been one of the most prominent Islamic financial services among the Muslim as well as non-Muslim community in the world. In Bangladesh, the service is also getting popularity to the people for the special features like risk-bearing by all of the participants, interest-free investment of funds etc. Considering the rapid growth of Islamic financial products worldwide and inadequate research on the limited reach of these services, this study aims to explore the factors affecting the customers’ purchase intention of Islamic insurance services in Bangladesh. The cross-sectional study has been conducted based on the Structural Equation Modeling (SEM) on the data collected through a self-administered questionnaire from 392 respondents. According to the study, it is revealed that compatibility, religiosity, customer awareness, reliability and trust have significant positive impact on customers’ purchase intention towards Takaful services in Bangladesh. The study result will help the service providers to look into the factors while tailoring their products and services. The policy makers should also know about the determinants so that they can formulate policies that promote the growth of the takaful industry and increase access to these products for consumers.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128176595","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aims to measure the efficiency of the commercial banksin Bangladesh using the Battese and Coelli (1995) model of Stochastic Frontier Analysis (SFA) approach. This is a widely used one-stepmodel, which allows for the estimation of bank efficiencyby taking the inefficiency-effecting exogenous factors into account. Using an unbalanced panel of 287 observations from 32 banks for the period 2011-2020, we found that on average the commercial banks are 91.64% cost-efficient and 79.21% profit-efficient and both cost and profit efficiency decreased during the COVID-19 period. Furthermore, we found that-private banks are more cost and profit efficient than state-owned banks; foreign banks are more profit-efficient but less cost-efficient than domestic banks;banks established between 1991-2000 are more cost-efficient while banks established between 2001-2010 are more profit-efficient when compared to their counterparts; old banks are less profit efficient than the new banks; and finally, expectedly, large banks are found to be more profit-efficient than small banks.
{"title":"Cost and Profit Efficiency Analysis of Commercial Banks in Bangladesh Using Stochastic Frontier Approach","authors":"Md. Asif Nawaz, T. Khan","doi":"10.57143/jbfs130104","DOIUrl":"https://doi.org/10.57143/jbfs130104","url":null,"abstract":"This study aims to measure the efficiency of the commercial banksin Bangladesh using the Battese and Coelli (1995) model of Stochastic Frontier Analysis (SFA) approach. This is a widely used one-stepmodel, which allows for the estimation of bank efficiencyby taking the inefficiency-effecting exogenous factors into account. Using an unbalanced panel of 287 observations from 32 banks for the period 2011-2020, we found that on average the commercial banks are 91.64% cost-efficient and 79.21% profit-efficient and both cost and profit efficiency decreased during the COVID-19 period. Furthermore, we found that-private banks are more cost and profit efficient than state-owned banks; foreign banks are more profit-efficient but less cost-efficient than domestic banks;banks established between 1991-2000 are more cost-efficient while banks established between 2001-2010 are more profit-efficient when compared to their counterparts; old banks are less profit efficient than the new banks; and finally, expectedly, large banks are found to be more profit-efficient than small banks.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122087817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates the relationship between remittances and the development of a financial system in impacting economic growth by using a panel dataset of 44 countries from 2001 to 2019. The paper examines the effects of remittance and financial development on the economic growth of different financial systems by employing Pooled OLS, Fixed Effects, and Random Effects estimation methods.The results from the Fixed Effects analysis suggest a significant negative effect of remittance on economic growth and no significant effect of the different variables taken to represent financial development. System Generalized Method of Moments (SGMM) accounts for the endogeneity between remittance and financial development and any other endogenous errors created within the model. The SGMM findings show no significant effect of remittance or financial development. With the incorporation of financial systems into the equation, it is evident that the impact of financial development varied among the two types of financial systems.
{"title":"Remittances, Financial Development and Economic Growth of Different Financial Systems: A Panel Data Analysis","authors":"Dr. Jannatul Ferdaous","doi":"10.57143/jbfs130107","DOIUrl":"https://doi.org/10.57143/jbfs130107","url":null,"abstract":"This paper investigates the relationship between remittances and the development of a financial system in impacting economic growth by using a panel dataset of 44 countries from 2001 to 2019. The paper examines the effects of remittance and financial development on the economic growth of different financial systems by employing Pooled OLS, Fixed Effects, and Random Effects estimation methods.The results from the Fixed Effects analysis suggest a significant negative effect of remittance on economic growth and no significant effect of the different variables taken to represent financial development. System Generalized Method of Moments (SGMM) accounts for the endogeneity between remittance and financial development and any other endogenous errors created within the model. The SGMM findings show no significant effect of remittance or financial development. With the incorporation of financial systems into the equation, it is evident that the impact of financial development varied among the two types of financial systems.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"74 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122267645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The primary focus of the study is to ascertain whether there is a clear relationship between knowledge management (KM) and organizational performance (OP) by looking at the impacts of universities. Because of the sharper competition in the education sector, educational institutions must adopt knowledge management to be effective. Knowledge management methods employed at the Bangladeshi universities are still inadequate to fulfill ambitious priorities; KM practices must be improved from a variety of structural, facility, and cultural perspectives among academic actors. In this study, a survey method is employed with a questionnaire to gather primary data. Target populations of the study were academic and non-academic members of staff of some selected universities of Bangladesh. Three hypotheses were proposed and evaluated through using partial least squares structural equation modeling technique. Findings of the study revealed that knowledge management has a positive impact on performance of the higher educational institutions. The research also discovered that knowledge management has a significant impact on organizational performance which, ultimately, improves the educational performance. However, Knowledge sharing between the universities and the faculties are acute in Bangladesh. In order to deal with the contemporary methods and approaches, efficiency of the academic staff must be improved. It is recommended that academic institutes and other organizations use knowledge management to effectively achieve organizational goals. Additionally, it is important to make sure that academic and non-academic staff receives the proper training and development so they may have the information necessary to successfully address today’s difficulties. This study aims to shed light on this issue as well as experimentally investigate the relationship between organizational performance (OP) and knowledge management (KM).
{"title":"Employee Perception on the Impact of Knowledge Management on Organizational Performance: A Study on Academic and Non-Academic Staff in the Higher Education Sector of Bangladesh","authors":"Dr. Md. Mesbah Uddin, Farha Sultana","doi":"10.57143/jbfs130110","DOIUrl":"https://doi.org/10.57143/jbfs130110","url":null,"abstract":"The primary focus of the study is to ascertain whether there is a clear relationship between knowledge management (KM) and organizational performance (OP) by looking at the impacts of universities. Because of the sharper competition in the education sector, educational institutions must adopt knowledge management to be effective. Knowledge management methods employed at the Bangladeshi universities are still inadequate to fulfill ambitious priorities; KM practices must be improved from a variety of structural, facility, and cultural perspectives among academic actors. In this study, a survey method is employed with a questionnaire to gather primary data. Target populations of the study were academic and non-academic members of staff of some selected universities of Bangladesh. Three hypotheses were proposed and evaluated through using partial least squares structural equation modeling technique. Findings of the study revealed that knowledge management has a positive impact on performance of the higher educational institutions. The research also discovered that knowledge management has a significant impact on organizational performance which, ultimately, improves the educational performance. However, Knowledge sharing between the universities and the faculties are acute in Bangladesh. In order to deal with the contemporary methods and approaches, efficiency of the academic staff must be improved. It is recommended that academic institutes and other organizations use knowledge management to effectively achieve organizational goals. Additionally, it is important to make sure that academic and non-academic staff receives the proper training and development so they may have the information necessary to successfully address today’s difficulties. This study aims to shed light on this issue as well as experimentally investigate the relationship between organizational performance (OP) and knowledge management (KM).","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131033167","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study aims to identify the reasons why women bank managers leave their jobs as well as their realization after the exit. Based on spillover theory while taking a Kaleido scopic view, the study tried to explore women bank managers’ exit career decisions through a gender lens. Utilizing a qualitative method, first purposive sampling and then snowballing technique were used to identify women bank managers who have quitted from their jobs. They were then interviewed using a semi-structured questionnaire. Findings show that the participants went through both work interference with family (WIF)and family interference with work(FIW) spillover resulting in work-family conflict (WFC)thus requiring more ‘balancing (B)’ instruments, as the majority of the participants were in their mid-career. However, ‘authenticity (A)’ and ‘challenges (C)’ still lied there with lessen force to impact. Accordingly, two major recommendations came out of the study to retain the talents of women in the workforce: availability of childcare centers and flexible work arrangements. Further study is suggested on both the areas to check the viability and probable execution.
{"title":"Reasons and Realization of Exit Decisions of Women Bank Managers in Bangladesh: A Kaleidoscopic Career Model View","authors":"Dr. Hasina Sheykh, Dr. Mansura Akter","doi":"10.57143/jbfs130102","DOIUrl":"https://doi.org/10.57143/jbfs130102","url":null,"abstract":"The study aims to identify the reasons why women bank managers leave their jobs as well as their realization after the exit. Based on spillover theory while taking a Kaleido scopic view, the study tried to explore women bank managers’ exit career decisions through a gender lens. Utilizing a qualitative method, first purposive sampling and then snowballing technique were used to identify women bank managers who have quitted from their jobs. They were then interviewed using a semi-structured questionnaire. Findings show that the participants went through both work interference with family (WIF)and family interference with work(FIW) spillover resulting in work-family conflict (WFC)thus requiring more ‘balancing (B)’ instruments, as the majority of the participants were in their mid-career. However, ‘authenticity (A)’ and ‘challenges (C)’ still lied there with lessen force to impact. Accordingly, two major recommendations came out of the study to retain the talents of women in the workforce: availability of childcare centers and flexible work arrangements. Further study is suggested on both the areas to check the viability and probable execution.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122279274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to identify the effects of Covid-19 on business in Italy, factors accelerating the impacts, and business strategies and government policies to combat the business impacts of the pandemic. The study uses combined data sets of the World Bank enterprise survey and the follow-up Covid-19 survey in Italy. Based on the survey, the study classifies the business impacts of Covid-19 into four types such as temporary closure, demand shock, supply shock, and fall of sales. The study applies PSM model with nearest neighbour matching method to analyze the data.The results of the study suggest that liquidity crisis, fall in credit sales, and credit purchases are the main reasons for Covid-19’s impacts on Italian business. Business strategies during the pandemic such as online activity, home delivery, and remote work significantly reduce the impacts of the pandemic. Alternative financing sources and government incentives do not help firms to combat Covid-19’s impacts. The results also suggest that the business impacts of Covid-19 and its contributing and combating factors significantly vary across the firm’s sectors and sizes.
{"title":"Can the firm-level strategies and government intervention policies mitigate the harms caused by the Covid-19 pandemic? Firm-level evidence from Italy","authors":"Md. Nazmul Hasan, Mohammad Monirul Islam","doi":"10.57143/jbfs130109","DOIUrl":"https://doi.org/10.57143/jbfs130109","url":null,"abstract":"The purpose of this study is to identify the effects of Covid-19 on business in Italy, factors accelerating the impacts, and business strategies and government policies to combat the business impacts of the pandemic. The study uses combined data sets of the World Bank enterprise survey and the follow-up Covid-19 survey in Italy. Based on the survey, the study classifies the business impacts of Covid-19 into four types such as temporary closure, demand shock, supply shock, and fall of sales. The study applies PSM model with nearest neighbour matching method to analyze the data.The results of the study suggest that liquidity crisis, fall in credit sales, and credit purchases are the main reasons for Covid-19’s impacts on Italian business. Business strategies during the pandemic such as online activity, home delivery, and remote work significantly reduce the impacts of the pandemic. Alternative financing sources and government incentives do not help firms to combat Covid-19’s impacts. The results also suggest that the business impacts of Covid-19 and its contributing and combating factors significantly vary across the firm’s sectors and sizes.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"149 11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130137940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The present study attempts to examine the riskiness of Islamic banks’ stock return when compared to that of market indices. Based on the Capital Asset Pricing Model (CAPM), the excess returns of individual Islamic bank’s stocks and that of market portfolio have been used for analysis. Moreover, the Fama-French (FF) three factor model has also been estimated incorporating both the size and value premium for stated stocks. Using the monthly stock prices of seven full-fledged Islamic banks for the period starting from July, 2014 to June, 2022, the paper aims to evaluate whether the stocks are defensive or aggressive than the market. The riskiness has been tested using both DSE broad index and DSE Shariah index as a measure of market portfolio returns. Findings suggest that stocks of each Islamic bank do behave differently; some are defensive, while others are as risky as the market with only one exception. Moreover, both CAPM and FF three factor model confirm that the Shariah based index outperform the conventional index in modeling the riskiness of stock returns. The results have been tested for presence of heteroskedasticity and serial correlation to validate the models.
{"title":"Evaluating the Riskiness of Islamic Banks’ Stocks in Bangladesh: An Empirical Study","authors":"Shagufta Shaheen, A. Sultana","doi":"10.57143/jbfs130108","DOIUrl":"https://doi.org/10.57143/jbfs130108","url":null,"abstract":"The present study attempts to examine the riskiness of Islamic banks’ stock return when compared to that of market indices. Based on the Capital Asset Pricing Model (CAPM), the excess returns of individual Islamic bank’s stocks and that of market portfolio have been used for analysis. Moreover, the Fama-French (FF) three factor model has also been estimated incorporating both the size and value premium for stated stocks. Using the monthly stock prices of seven full-fledged Islamic banks for the period starting from July, 2014 to June, 2022, the paper aims to evaluate whether the stocks are defensive or aggressive than the market. The riskiness has been tested using both DSE broad index and DSE Shariah index as a measure of market portfolio returns. Findings suggest that stocks of each Islamic bank do behave differently; some are defensive, while others are as risky as the market with only one exception. Moreover, both CAPM and FF three factor model confirm that the Shariah based index outperform the conventional index in modeling the riskiness of stock returns. The results have been tested for presence of heteroskedasticity and serial correlation to validate the models.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125509977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This investigation aims to reveal how the profitability of local private commercial banks in Bangladesh is affected by their intellectual capital determinants. Secondary sources like annual reports of 10 private conventional commercial banks in Bangladesh were used to get data from 2008 to 2020. This paper uses econometric modeling techniques to examine the relationship between the profitability measures of NIM ratio, ROA, and ROE of the selected private commercial banks and a number of relevant components of intellectual capital of banks such as human capital efficiency, structural capital efficiency and Bank’s relative efficiency along with some bank-specific control variables including income diversification, bank size, bank age, insolvency risks, leverage ratio and market share.Dynamic panel data models were then built using one-step system GMMtechniques to account for endogeneity, unobserved heterogeneity, and profitability persistence of the data set across the chosen time period. This study hasfound that intellectual capital along with leverage ratio, revenue diversification, bank age, bankruptcy risks, and market share are statistically significant to demonstrate differences in NIM, ROA, and ROE measuring profitability of our sampled banks. The one-step system GMM approach has effectively adapted the dynamic effects of intellectual capital on bank profitability, taking into consideration all estimate conditions. A more accurate evaluation of intellectual capital’s effect on the banking industry’s profitability may be obtained in a future research encompassing all banks in Bangladesh.
{"title":"Impact of Intellectual Capital Components on Bank Performance: An Evidence from Bangladesh","authors":"Dr. Raad Mozib Lalon, Shomaila Nargis Saika","doi":"10.57143/jbfs130101","DOIUrl":"https://doi.org/10.57143/jbfs130101","url":null,"abstract":"This investigation aims to reveal how the profitability of local private commercial banks in Bangladesh is affected by their intellectual capital determinants. Secondary sources like annual reports of 10 private conventional commercial banks in Bangladesh were used to get data from 2008 to 2020. This paper uses econometric modeling techniques to examine the relationship between the profitability measures of NIM ratio, ROA, and ROE of the selected private commercial banks and a number of relevant components of intellectual capital of banks such as human capital efficiency, structural capital efficiency and Bank’s relative efficiency along with some bank-specific control variables including income diversification, bank size, bank age, insolvency risks, leverage ratio and market share.Dynamic panel data models were then built using one-step system GMMtechniques to account for endogeneity, unobserved heterogeneity, and profitability persistence of the data set across the chosen time period. This study hasfound that intellectual capital along with leverage ratio, revenue diversification, bank age, bankruptcy risks, and market share are statistically significant to demonstrate differences in NIM, ROA, and ROE measuring profitability of our sampled banks. The one-step system GMM approach has effectively adapted the dynamic effects of intellectual capital on bank profitability, taking into consideration all estimate conditions. A more accurate evaluation of intellectual capital’s effect on the banking industry’s profitability may be obtained in a future research encompassing all banks in Bangladesh.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"155 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134211304","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article covers the need for ethical norms and identifies ethical difficulties that arise in credit sections of the private banking industry in Bangladesh. A research sample of 25 commercial banks has been included, and 239 questionnaires were accepted as a sample for the purpose of estimation and hypothesis development. The variables included are qualitative in nature. Linear regression model was used for data analysis. The dependent variable is the challenge level in credit department, and the independent variables are sales target, higher authority pressure, central bank and government regulation, unethical financial incentive, and request from acquaintances. The findings show that there is a significant influence on the challenge level of credit department by sales target, higher authority pressure, central bank and government regulation, and unethical financial incentive. Therefore, it is recommended that banks increase their focus on upholding the code of conduct, thereby enhancing ethical standards for long-term profitability and improved customer satisfaction.
{"title":"A Study on Ethical Challenges Faced by the Credit Officers in the Banking Industry of Bangladesh","authors":"M. A. Islam, A. Ashraf","doi":"10.57143/jbfs130106","DOIUrl":"https://doi.org/10.57143/jbfs130106","url":null,"abstract":"This article covers the need for ethical norms and identifies ethical difficulties that arise in credit sections of the private banking industry in Bangladesh. A research sample of 25 commercial banks has been included, and 239 questionnaires were accepted as a sample for the purpose of estimation and hypothesis development. The variables included are qualitative in nature. Linear regression model was used for data analysis. The dependent variable is the challenge level in credit department, and the independent variables are sales target, higher authority pressure, central bank and government regulation, unethical financial incentive, and request from acquaintances. The findings show that there is a significant influence on the challenge level of credit department by sales target, higher authority pressure, central bank and government regulation, and unethical financial incentive. Therefore, it is recommended that banks increase their focus on upholding the code of conduct, thereby enhancing ethical standards for long-term profitability and improved customer satisfaction.","PeriodicalId":344967,"journal":{"name":"Journal of Banking & Financial Services","volume":"85 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124024547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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