Pub Date : 2024-02-29DOI: 10.21511/bbs.19(1).2024.10
Sri Hidayati, Taufiq Marwa, S. Andaiyani, Abukosim
The global economy has fostered a dynamic environment of economic globalization, leading to amplified interconnectedness, integration, and worldwide influence in both commercial transactions and monetary activities. This occurrence emphasizes the vital role of liberalizing capital and international trade in economic discussions, particularly in emerging economies where banking-centric systems wield considerable influence. The objective of this study is to investigate the correlation between trade liberalization and financial inclusivity, specifically concerning the resilience of the banking industry in developing nations throughout the period of 2010–2020. Utilizing the dynamic data model of Arellano-Bond’s Generalized Method of Moment Estimator, this study yields a significant revelation. The interaction between trade openness and financial transparency exerts a noticeable and advantageous impact on banking stability, with each 1% increase in openness resulting in a remarkable improvement of 98.9445 in Net Interest Margin, 116.2575 in Z score, and 119.9189 in Non-Performing Loans. Consequently, this investigation confirms the presence of a diversification effect on stability while concurrently applying the concept of voltage fragility. In essence, trade openness propels the banking sector toward heightened competitiveness due to increased demand from local businesses, while financial openness fosters heightened competition within the credit market.
{"title":"Reviewing the consequence of trade openness and financial openness on banking stability in developing countries","authors":"Sri Hidayati, Taufiq Marwa, S. Andaiyani, Abukosim","doi":"10.21511/bbs.19(1).2024.10","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.10","url":null,"abstract":"The global economy has fostered a dynamic environment of economic globalization, leading to amplified interconnectedness, integration, and worldwide influence in both commercial transactions and monetary activities. This occurrence emphasizes the vital role of liberalizing capital and international trade in economic discussions, particularly in emerging economies where banking-centric systems wield considerable influence. The objective of this study is to investigate the correlation between trade liberalization and financial inclusivity, specifically concerning the resilience of the banking industry in developing nations throughout the period of 2010–2020. Utilizing the dynamic data model of Arellano-Bond’s Generalized Method of Moment Estimator, this study yields a significant revelation. The interaction between trade openness and financial transparency exerts a noticeable and advantageous impact on banking stability, with each 1% increase in openness resulting in a remarkable improvement of 98.9445 in Net Interest Margin, 116.2575 in Z score, and 119.9189 in Non-Performing Loans. Consequently, this investigation confirms the presence of a diversification effect on stability while concurrently applying the concept of voltage fragility. In essence, trade openness propels the banking sector toward heightened competitiveness due to increased demand from local businesses, while financial openness fosters heightened competition within the credit market.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140415676","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}
Pub Date : 2024-02-20DOI: 10.21511/bbs.19(1).2024.08
Oussouadi Kamal, Cherkaoui Kenza
The aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was to examine their survival over the ten years following the obtaining of these guarantees. Logistic regression was used to reflect several results. The results of the study highlight several factors influencing the probability of survival of these SMEs. Larger amounts of credit promote financial resilience and growth, thereby increasing the likelihood of business survival. Business profitability is a key factor in the likelihood of survival. Profitable businesses attract more investors and lenders, improving access to credit and increasing survival prospects. Contrary to some studies, high levels of debt do not appear to reduce the probability of survival. Similarly, repayment capacity showed no significant link with survival, suggesting the importance of other non-financial factors. Mature and well-considered management decision making is associated with a higher probability of survival. Well-thought-out decisions promote the long-term viability of businesses. Small SMEs also have a good chance of survival because of their rapid adaptability. A manager’s active participation in a company’s capital is linked to a higher probability of survival. This underlines the importance of the personal involvement of the manager and of solid governance.
{"title":"Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco","authors":"Oussouadi Kamal, Cherkaoui Kenza","doi":"10.21511/bbs.19(1).2024.08","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.08","url":null,"abstract":"The aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was to examine their survival over the ten years following the obtaining of these guarantees. Logistic regression was used to reflect several results. The results of the study highlight several factors influencing the probability of survival of these SMEs. Larger amounts of credit promote financial resilience and growth, thereby increasing the likelihood of business survival. Business profitability is a key factor in the likelihood of survival. Profitable businesses attract more investors and lenders, improving access to credit and increasing survival prospects. Contrary to some studies, high levels of debt do not appear to reduce the probability of survival. Similarly, repayment capacity showed no significant link with survival, suggesting the importance of other non-financial factors. Mature and well-considered management decision making is associated with a higher probability of survival. Well-thought-out decisions promote the long-term viability of businesses. Small SMEs also have a good chance of survival because of their rapid adaptability. A manager’s active participation in a company’s capital is linked to a higher probability of survival. This underlines the importance of the personal involvement of the manager and of solid governance.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139958270","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}
Pub Date : 2024-01-22DOI: 10.21511/bbs.19(1).2024.05
V. Viverita, Dwi Nastiti Danarsari, Y. Bustaman, Fadli Septianto
This study examines the role of a bank’s cost efficiency and competition when creating liquidity. It also investigates the different abilities to create liquidity between conventional banks and Islamic banks. This study employs data from annual reports for 117 banks, including 103 conventional banks and 14 Islamic banks from the Association of Southeast Asian Nations 4 (ASEAN-4). Using the dynamic panel regression with the GMM system, this study finds that cost-efficient banks have a higher ability to create liquidity, while high banking competition deteriorates that ability. However, these effects decrease as banks manage their costs more efficiently. The findings imply that banks’ ability to create liquidity is impacted by their market power to win the competition. Additionally, this study found that Islamic banks create more liquidity than conventional banks. This phenomenon indicates that by being more focused on activities using on-balance sheet items, Islamic banks are spared from risky off-balance sheet commitments. Furthermore, efficient banks are more able to generate liquidity in competitive markets.
{"title":"The effect of banks’ cost efficiency and competition on liquidity creation","authors":"V. Viverita, Dwi Nastiti Danarsari, Y. Bustaman, Fadli Septianto","doi":"10.21511/bbs.19(1).2024.05","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.05","url":null,"abstract":"This study examines the role of a bank’s cost efficiency and competition when creating liquidity. It also investigates the different abilities to create liquidity between conventional banks and Islamic banks. This study employs data from annual reports for 117 banks, including 103 conventional banks and 14 Islamic banks from the Association of Southeast Asian Nations 4 (ASEAN-4). Using the dynamic panel regression with the GMM system, this study finds that cost-efficient banks have a higher ability to create liquidity, while high banking competition deteriorates that ability. However, these effects decrease as banks manage their costs more efficiently. The findings imply that banks’ ability to create liquidity is impacted by their market power to win the competition. Additionally, this study found that Islamic banks create more liquidity than conventional banks. This phenomenon indicates that by being more focused on activities using on-balance sheet items, Islamic banks are spared from risky off-balance sheet commitments. Furthermore, efficient banks are more able to generate liquidity in competitive markets.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139609422","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}
Pub Date : 2024-01-19DOI: 10.21511/bbs.19(1).2024.04
Nguyen Minh Sang
This study examines the level of knowledge, use, and determinants determining the adoption of Apple Pay among Generation Z customers in Vietnam. An online survey with 339 participants aged 18-26 was done using quantitative methods. The participants were recruited using social media platforms. The study model included elements from technological acceptance theories, such as effort expectation, perceived risk, perceived value, and convenience. The measurements were ensured to be reliable and genuine. The hypotheses were tested by analyzing the data using partial least squares structural equation modeling. The study’s results suggest that the data collected through PLS-SEM analysis provide evidence in support of the hypotheses proposing that factors such as Mobile User Skillfulness, Personal Innovation, Perceived Usefulness, Effort Expectation, Convenience, and Perceived Value have a positive influence on individuals’ Intentions to Use Apple Pay in Vietnam. Furthermore, the study revealed that the variables of Perceived Risk and Social Image did not have a statistically significant influence. The findings suggest that the pragmatic orientation of Generation Z towards the functionality and ease of use of Apple Pay has a significant impact on their adoption of this payment system in Vietnam. The study offers banks in Vietnam significant insights regarding the promotion of mobile wallet adoption among the younger demographic. Adoption may be increased by presenting Apple Pay as a practical and convenient application. AcknowledgmentThe author would like to thank everyone who filled out the survey. Without the help of everyone involved and the Ho Chi Minh University of Banking (Vietnam), this study would not have been possible.
本研究探讨了越南 Z 世代顾客对 Apple Pay 的了解程度、使用情况以及决定其采用的因素。研究采用定量方法对 339 名 18-26 岁的参与者进行了在线调查。参与者是通过社交媒体平台招募的。研究模型包括技术接受理论的要素，如努力期望、感知风险、感知价值和便利性。测量结果确保真实可靠。通过使用偏最小二乘结构方程模型分析数据，对假设进行了检验。研究结果表明，通过偏最小二乘法结构方程模型分析收集的数据为假设提供了支持证据，即移动用户技能、个人创新、感知有用性、努力期望、便利性和感知价值等因素对越南个人使用 Apple Pay 的意愿有积极影响。此外，研究还发现，"感知风险 "和 "社会形象 "这两个变量在统计上没有显著影响。研究结果表明，Z 世代对 Apple Pay 功能和易用性的实用主义取向对他们在越南采用该支付系统有重大影响。这项研究为越南银行在年轻人群中推广使用手机钱包提供了重要启示。通过将 Apple Pay 介绍为实用、便捷的应用程序，可以提高其采用率。 鸣谢作者感谢所有填写调查问卷的人。如果没有所有相关人员和胡志明银行大学（越南）的帮助，本研究将无法完成；
{"title":"Examining the adoption of Apple Pay among generation Z in Vietnam","authors":"Nguyen Minh Sang","doi":"10.21511/bbs.19(1).2024.04","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.04","url":null,"abstract":"This study examines the level of knowledge, use, and determinants determining the adoption of Apple Pay among Generation Z customers in Vietnam. An online survey with 339 participants aged 18-26 was done using quantitative methods. The participants were recruited using social media platforms. The study model included elements from technological acceptance theories, such as effort expectation, perceived risk, perceived value, and convenience. The measurements were ensured to be reliable and genuine. The hypotheses were tested by analyzing the data using partial least squares structural equation modeling. The study’s results suggest that the data collected through PLS-SEM analysis provide evidence in support of the hypotheses proposing that factors such as Mobile User Skillfulness, Personal Innovation, Perceived Usefulness, Effort Expectation, Convenience, and Perceived Value have a positive influence on individuals’ Intentions to Use Apple Pay in Vietnam. Furthermore, the study revealed that the variables of Perceived Risk and Social Image did not have a statistically significant influence. The findings suggest that the pragmatic orientation of Generation Z towards the functionality and ease of use of Apple Pay has a significant impact on their adoption of this payment system in Vietnam. The study offers banks in Vietnam significant insights regarding the promotion of mobile wallet adoption among the younger demographic. Adoption may be increased by presenting Apple Pay as a practical and convenient application.\u0000AcknowledgmentThe author would like to thank everyone who filled out the survey. Without the help of everyone involved and the Ho Chi Minh University of Banking (Vietnam), this study would not have been possible. ","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139612794","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}
Pub Date : 2024-01-17DOI: 10.21511/bbs.19(1).2024.03
Aman Gupta, Md. Atikur Rahaman, Rupali Dilip Taru, Imad Ali, Mohammed Julfikar Ali
This empirical study aims to explore the factors that impact job satisfaction among employees in private banks in Bangladesh, considering the prevailing atmosphere of intense competition in the country’s banking sector. Recognizing that employees are a crucial asset to any organization’s success, it is essential to explore the variables that contribute to their work contentment. The methodology adopted for this study follows a quantitative approach, employing regression analysis for scrutinizing the relationships between job satisfaction and selected variables. This study included a sample of 320 individuals employed in private banks in Bangladesh. This sample size was considered suitable for conducting a robust quantitative regression analysis. To collect the necessary data, the questionnaire was given to the bank personnel and employees via their email addresses. The survey instrument utilized in this investigation was modified from earlier research endeavors to ensure validity and reliability. To analyze the collected data, the researchers utilized the statistical software SPSS version 29.0. The regression analysis feature of SPSS was employed to test the model and hypotheses formulated for this study. The findings of the study reveal that green HR practices (β = 0.284), which encompass environmentally friendly policies and practices in human resource management, significantly contribute to employee job satisfaction. Additionally, remuneration (β = 0.224) emerges as another vital factor influencing job satisfaction. Furthermore, work environment (β = 0.298) was found to have a significant positive and highest effect among other two variables on job satisfaction levels.
{"title":"Are you satisfied? Tracing antecedents of bank employees’ job satisfaction in their job role","authors":"Aman Gupta, Md. Atikur Rahaman, Rupali Dilip Taru, Imad Ali, Mohammed Julfikar Ali","doi":"10.21511/bbs.19(1).2024.03","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.03","url":null,"abstract":"This empirical study aims to explore the factors that impact job satisfaction among employees in private banks in Bangladesh, considering the prevailing atmosphere of intense competition in the country’s banking sector. Recognizing that employees are a crucial asset to any organization’s success, it is essential to explore the variables that contribute to their work contentment. The methodology adopted for this study follows a quantitative approach, employing regression analysis for scrutinizing the relationships between job satisfaction and selected variables. This study included a sample of 320 individuals employed in private banks in Bangladesh. This sample size was considered suitable for conducting a robust quantitative regression analysis. To collect the necessary data, the questionnaire was given to the bank personnel and employees via their email addresses. The survey instrument utilized in this investigation was modified from earlier research endeavors to ensure validity and reliability. To analyze the collected data, the researchers utilized the statistical software SPSS version 29.0. The regression analysis feature of SPSS was employed to test the model and hypotheses formulated for this study. The findings of the study reveal that green HR practices (β = 0.284), which encompass environmentally friendly policies and practices in human resource management, significantly contribute to employee job satisfaction. Additionally, remuneration (β = 0.224) emerges as another vital factor influencing job satisfaction. Furthermore, work environment (β = 0.298) was found to have a significant positive and highest effect among other two variables on job satisfaction levels.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139616646","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}
Pub Date : 2023-12-15DOI: 10.21511/bbs.18(4).2023.22
Nigar Ashurbayli-Huseynova, Yevgeniya Garmidarova
The paper aims to define the specifics of the mutual interconnection between bank capitalization and indicators of macroeconomic stability. This is achieved by the following methods: grouping, analysis and synthesis, analysis of descriptive statistics, and canonical correlation analysis. The study was carried out based on eight bank capitalization indicators and five macroeconomic stability indicators in seventeen South-West Asian countries from 2010 to 2020. The information base of the research is the dataset from the World Bank. The selected list of indicators is determined by the availability of statistical information for the countries participating in the study. It was found that there is a close canonical correlation between the level of bank capitalization and the macroeconomic stability of the countries under investigation – 0.97 (2010) and 0.99 (2020). The variation of the investigated indicators of macroeconomic stability (68.95% (2010) and 70.64% (2020)) is determined by the change in bank capitalization indicators. On the other hand, the difference in macroeconomic stability indicators of countries by 48.66% (2010) and 42.79% (2020) is due to changes in bank capitalization indicators. Four indicators exert the most significant favorable influence on the level of bank capitalization: Bank return on assets – 0.303 (2010) and 13.033 (2020), Bank return on equity – 0.446 (2010) and 13.387 (2020), Bank regulatory capital to risk-weighted assets – 0.812 (2010), and Bank deposits to GDP – 1.580 (2020). The macroeconomic stability of countries is determined by two indicators: GNI – 3.311 (2010) and 3.461 (2020); GDP – 4.748 (2010) and 4.672 (2020).
{"title":"Interconnection between bank capitalization and macroeconomic stability in the countries of South-West Asia","authors":"Nigar Ashurbayli-Huseynova, Yevgeniya Garmidarova","doi":"10.21511/bbs.18(4).2023.22","DOIUrl":"https://doi.org/10.21511/bbs.18(4).2023.22","url":null,"abstract":"The paper aims to define the specifics of the mutual interconnection between bank capitalization and indicators of macroeconomic stability. This is achieved by the following methods: grouping, analysis and synthesis, analysis of descriptive statistics, and canonical correlation analysis. The study was carried out based on eight bank capitalization indicators and five macroeconomic stability indicators in seventeen South-West Asian countries from 2010 to 2020. The information base of the research is the dataset from the World Bank. The selected list of indicators is determined by the availability of statistical information for the countries participating in the study. It was found that there is a close canonical correlation between the level of bank capitalization and the macroeconomic stability of the countries under investigation – 0.97 (2010) and 0.99 (2020). The variation of the investigated indicators of macroeconomic stability (68.95% (2010) and 70.64% (2020)) is determined by the change in bank capitalization indicators. On the other hand, the difference in macroeconomic stability indicators of countries by 48.66% (2010) and 42.79% (2020) is due to changes in bank capitalization indicators. Four indicators exert the most significant favorable influence on the level of bank capitalization: Bank return on assets – 0.303 (2010) and 13.033 (2020), Bank return on equity – 0.446 (2010) and 13.387 (2020), Bank regulatory capital to risk-weighted assets – 0.812 (2010), and Bank deposits to GDP – 1.580 (2020). The macroeconomic stability of countries is determined by two indicators: GNI – 3.311 (2010) and 3.461 (2020); GDP – 4.748 (2010) and 4.672 (2020).","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138995746","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}
An important factor in increasing public trust in banks is to show bank performance, so it is necessary to know the factors that influence bank performance. Therefore, it is important to attract the attention of bank management. This study aims to determine the factors influencing bank performance by using social responsibility as a moderating variable. This study involved 20 banks in Indonesia and used a quantitative approach. Secondary data sources were used for data collection and analyzed using a regression equation model. The results show that non-performing loans and bank size have no effect on bank performance. Meanwhile, loan-to-deposit ratio and corporate social responsibility have a positive effect at the 1% significance level. The results of testing the moderation effect obtained t-statistic values of –0.365 and –4.269. These results show that social responsibility has a negative effect, does not moderate the relationship between non-performing loans and bank performance, but has a negative effect, moderating the relationship between the loan-to-deposit ratio and bank performance. These findings have policy implications for bank performance through the implementation of corporate social responsibility policies. AcknowledgmentsThe authors would like to thank the DPPMP of Stikubank University for supporting the funding of this research. Thanks also to the NGEJUS - FEB Unisbank team who helped provide the facilities needed for this study.
提高公众对银行信任度的一个重要因素是展示银行业绩，因此有必要了解影响银行业绩的因素。因此，必须引起银行管理层的重视。本研究旨在以社会责任作为调节变量，确定影响银行绩效的因素。本研究涉及印度尼西亚的 20 家银行，采用定量方法。数据收集采用二手数据来源，并使用回归方程模型进行分析。结果显示，不良贷款和银行规模对银行绩效没有影响。同时，贷存比和企业社会责任在 1%的显著性水平上有正向影响。检验调节效应的结果得出 t 统计量值为-0.365 和-4.269。这些结果表明，社会责任具有负效应，不能调节不良贷款与银行绩效之间的关系，但具有负效应，能调节贷存比与银行绩效之间的关系。这些发现对通过实施企业社会责任政策来提高银行绩效具有政策意义。 鸣谢作者感谢 Stikubank 大学 DPPMP 对本研究的资助。还要感谢 NGEJUS - FEB Unisbank 团队为本研究提供了所需的设施。
{"title":"The role of corporate social responsibility as a moderating factor in influencing bank performance in Indonesia","authors":"Bambang Sudiyatno, Batara Daniel Bagana, Widhian Hardiyanti, Elen Puspitasari, Siska Dwi Safitri","doi":"10.21511/bbs.19(1).2024.01","DOIUrl":"https://doi.org/10.21511/bbs.19(1).2024.01","url":null,"abstract":"An important factor in increasing public trust in banks is to show bank performance, so it is necessary to know the factors that influence bank performance. Therefore, it is important to attract the attention of bank management. This study aims to determine the factors influencing bank performance by using social responsibility as a moderating variable. This study involved 20 banks in Indonesia and used a quantitative approach. Secondary data sources were used for data collection and analyzed using a regression equation model. The results show that non-performing loans and bank size have no effect on bank performance. Meanwhile, loan-to-deposit ratio and corporate social responsibility have a positive effect at the 1% significance level. The results of testing the moderation effect obtained t-statistic values of –0.365 and –4.269. These results show that social responsibility has a negative effect, does not moderate the relationship between non-performing loans and bank performance, but has a negative effect, moderating the relationship between the loan-to-deposit ratio and bank performance. These findings have policy implications for bank performance through the implementation of corporate social responsibility policies.\u0000AcknowledgmentsThe authors would like to thank the DPPMP of Stikubank University for supporting the funding of this research. Thanks also to the NGEJUS - FEB Unisbank team who helped provide the facilities needed for this study.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138999173","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}
Pub Date : 2023-12-12DOI: 10.21511/bbs.18(4).2023.21
Diep Dao Mong, Hai Phan Thanh
This study investigates the relationship and the magnitude of the influence of perceived training in labor law knowledge on employees’ organizational commitment, with job satisfaction as a mediating factor. The study concentrates on the commercial banking sector in Vietnam, an emerging developing country in Southeast Asia. Data were gathered through interviews with 496 employees from 20 commercial banks in Vietnam. Applying partial least squares structural equation modeling, the analysis indicates that employees’ perceptions of training in labor law knowledge have both direct and indirect effects on their job satisfaction and organizational commitment. The perceived motivation for training, perceived benefits of training, perceived availability of training, and perceived support from management and colleagues all serve as significant mediators in this relationship. Notably, increased job satisfaction significantly contributes to a positive impact on employees’ commitment to the organization. However, the study results suggest that employees’ perceived benefits of labor law training do not have a significant influence on their commitment to the organization. Nonetheless, these results serve as a foundation for managerial implications, offering valuable insights to enterprise managers in the commercial bank sector to improve future labor law training. AcknowledgmentThis collaborative research involves scholars from the University of Law – Hue University and Duy Tan University. The authors extend their gratitude to both institutions for their support and assistance in facilitating the publication of this research.
{"title":"Does the perception of training in labor law knowledge affect job satisfaction and organizational commitment in commercial banks?","authors":"Diep Dao Mong, Hai Phan Thanh","doi":"10.21511/bbs.18(4).2023.21","DOIUrl":"https://doi.org/10.21511/bbs.18(4).2023.21","url":null,"abstract":"This study investigates the relationship and the magnitude of the influence of perceived training in labor law knowledge on employees’ organizational commitment, with job satisfaction as a mediating factor. The study concentrates on the commercial banking sector in Vietnam, an emerging developing country in Southeast Asia. Data were gathered through interviews with 496 employees from 20 commercial banks in Vietnam. Applying partial least squares structural equation modeling, the analysis indicates that employees’ perceptions of training in labor law knowledge have both direct and indirect effects on their job satisfaction and organizational commitment. The perceived motivation for training, perceived benefits of training, perceived availability of training, and perceived support from management and colleagues all serve as significant mediators in this relationship. Notably, increased job satisfaction significantly contributes to a positive impact on employees’ commitment to the organization. However, the study results suggest that employees’ perceived benefits of labor law training do not have a significant influence on their commitment to the organization. Nonetheless, these results serve as a foundation for managerial implications, offering valuable insights to enterprise managers in the commercial bank sector to improve future labor law training.\u0000AcknowledgmentThis collaborative research involves scholars from the University of Law – Hue University and Duy Tan University. The authors extend their gratitude to both institutions for their support and assistance in facilitating the publication of this research.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139007068","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}
Pub Date : 2023-11-14DOI: 10.21511/bbs.18(4).2023.10
Hadi Ismanto, Purwo Adi Wibowo, Tsalsa Dyna Shofwatin
The growth of financial technology (fintech) brings happiness to micro, small, and medium enterprises (MSMEs) that banks have denied access to credit. However, this condition has the potential to create a climate of intensified competition in the credit market and threaten banking stability. Therefore, this study examines the impact of banking stability and fintech on credit performance and credit access of MSMEs. This study uses a sample of 46 public commercial banks of the Republic of Indonesia and uses quarterly data from 2010 to 2022. The number of observations used for bank stability variables was 2,392, and for the fintech variables, 921 observations. This research analysis uses the fixed effect model method with robust standard errors. The results show that bank stability and fintech effect MSMEs’ credit performance and their access to credit. This finding encourages the competition-fragility theory. Bank stability reduces nonperforming loans and MSMEs’ access to credit. This indicates that stable banks encourage better MSME loan performance and thus restrict their lending to MSMEs. The existence of fintech is proven to improve MSMEs’ non-performing loans and their access to credit. Fintech that facilitates easy credit causes MSMEs` credit performance at banks to fall, which in turn opens the gate for MSME credit. The implication is that the financial services authority (OJK) needs to tighten further the online lending of fintech companies that have put more burden on MSMEs with high capital costs that can affect the ability of MSMEs to pay bank loan installments. AcknowledgmentsAppreciation is given to the Directorate General of Higher Education, Research and Technology, Ministry of Education, Culture, Research, and Technology, which has provided a fundamental research grant with contract number 182/E5/PG.02.00.PL/2023. Thanks are also given to higher education service institutions (LLDIKTI) Region 6 and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this research.
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Pub Date : 2023-11-14DOI: 10.21511/bbs.18(4).2023.11
Faaza Fakhrunnas, Katiya Nahda
In an era defined by global economic uncertainty, the role of management performance in influencing bank risk-taking has become pivotal. This urgency stems from the evolving dynamics of the banking sector and the need for robust risk management strategies. This study investigates the relationship between management performance and banks’ risk-taking behavior, drawing data from 248 banks across eight countries comprising Indonesia, Malaysia, Bangladesh, Pakistan, Saudi Arabia, Oman, Bahrain, and the United Arab Emirates spanning 2013–2021 using panel data analysis. The study reveals that management performance measured by a cost-to-income ratio (β = –0.44, p < 0.01) has a negative and significant relationship with bank risk-taking behavior. In essence, a bank with superior management performance, indicated by a lower cost-to-income ratio, tends to have greater financial stability, as evidenced by a higher Z-score. Notably, external factors like the financial crisis and institutional development as moderating variables do not significantly alter the relationship between management performance and banks’ risk-taking behavior. The study also discovers that Islamic banks (β = 0.31, p < 0.01) outperform their conventional counterparts in risk management and management performance. However, it is worth noting that the results of regional analysis demonstrate variations across the Southeast, South, and Middle East regions. After conducting several robustness check tests, the findings of this study remain consistent, offering valuable implications for both policymakers and bank management. These insights emphasize the importance of formulating appropriate regulations and frameworks to enhance management performance at the banking level. AcknowledgmentThe authors gratefully acknowledge the support from Direktorat Penelitian dan Pengabdian Masyarakat (DPPM) Universitas Islam Indonesia No: 006/Dir/DPPM/70/Pen.Unggulan/III/2023 for providing a research grant to this study.
在一个以全球经济不确定性为特征的时代，管理绩效在影响银行风险承担方面的作用已变得至关重要。这种紧迫性源于银行业不断变化的动态以及对强有力的风险管理战略的需求。本研究利用面板数据分析方法，从2013-2021年印度尼西亚、马来西亚、孟加拉国、巴基斯坦、沙特阿拉伯、阿曼、巴林和阿拉伯联合酋长国等8个国家的248家银行获取数据，调查了管理绩效与银行冒险行为之间的关系。研究表明，用成本收入比(β = -0.44, p <0.01)与银行风险承担行为呈显著负相关。从本质上讲，成本收入比越低的管理绩效越好的银行，其财务稳定性也越高，Z-score也越高。值得注意的是，金融危机和制度发展等外部因素作为调节变量并没有显著改变管理绩效与银行风险承担行为之间的关系。研究还发现，伊斯兰银行(β = 0.31, p <0.01)在风险管理和管理绩效方面优于传统同行。然而，值得注意的是，区域分析的结果显示了东南部、南部和中东地区的差异。在进行了几次稳健性检验后，本研究的结果保持一致，为政策制定者和银行管理层提供了有价值的启示。这些见解强调了制定适当的法规和框架以提高银行管理绩效的重要性。作者感谢印度尼西亚伊斯兰大学Penelitian dan Pengabdian Masyarakat (DPPM)主任的支持，编号:006/Dir/DPPM/70/Pen。Unggulan/III/2023为本研究提供研究经费。
{"title":"The impact of management performance on risk-taking behavior in a dual banking system: A cross-country analysis","authors":"Faaza Fakhrunnas, Katiya Nahda","doi":"10.21511/bbs.18(4).2023.11","DOIUrl":"https://doi.org/10.21511/bbs.18(4).2023.11","url":null,"abstract":"In an era defined by global economic uncertainty, the role of management performance in influencing bank risk-taking has become pivotal. This urgency stems from the evolving dynamics of the banking sector and the need for robust risk management strategies. This study investigates the relationship between management performance and banks’ risk-taking behavior, drawing data from 248 banks across eight countries comprising Indonesia, Malaysia, Bangladesh, Pakistan, Saudi Arabia, Oman, Bahrain, and the United Arab Emirates spanning 2013–2021 using panel data analysis. The study reveals that management performance measured by a cost-to-income ratio (β = –0.44, p &amp;lt; 0.01) has a negative and significant relationship with bank risk-taking behavior. In essence, a bank with superior management performance, indicated by a lower cost-to-income ratio, tends to have greater financial stability, as evidenced by a higher Z-score. Notably, external factors like the financial crisis and institutional development as moderating variables do not significantly alter the relationship between management performance and banks’ risk-taking behavior. The study also discovers that Islamic banks (β = 0.31, p &amp;lt; 0.01) outperform their conventional counterparts in risk management and management performance. However, it is worth noting that the results of regional analysis demonstrate variations across the Southeast, South, and Middle East regions. After conducting several robustness check tests, the findings of this study remain consistent, offering valuable implications for both policymakers and bank management. These insights emphasize the importance of formulating appropriate regulations and frameworks to enhance management performance at the banking level. AcknowledgmentThe authors gratefully acknowledge the support from Direktorat Penelitian dan Pengabdian Masyarakat (DPPM) Universitas Islam Indonesia No: 006/Dir/DPPM/70/Pen.Unggulan/III/2023 for providing a research grant to this study.","PeriodicalId":53480,"journal":{"name":"Banks and Bank Systems","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134902812","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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