Effects of Foreign Banks Entry on Bank Performance in the CEE Countries

2004 ◽  
Author(s):  
Janek Uiboupin
Keyword(s):  
Foreign Banks ◽  
Bank Performance

Determinants of Bank Performance in a Developing Economy

2012 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Fadzlan Sufian ◽  
Mohamad Akbar Noor Mohamad Noor
Keyword(s):  
Banking Sector ◽  
External Factors ◽  
Foreign Banks ◽  
Bank Performance ◽  
Asian Countries ◽  
Network Embeddedness ◽  
Indian Banks ◽  
Internal And External Factors ◽  
The Impact ◽  
Global Advantage

The article seeks to examine the internal and external factors that influenced the performance of banks operating in the Indian banking sector during the period 2000–08. The empirical findings from this study suggest that credit risk, network embeddedness, operating expenses, liquidity and size have statistically significant impact on the profitability of Indian banks. However, the impact is not uniform across banks of different nations of origin. During the period under study, the empirical findings do not lend support for the ‘limited form’ of global advantage hypothesis. Likewise, the liability of unfamiliarness hypothesis is also rejected, since we do not find significant advantage accruing to foreign banks from other Asian countries.

scholarly journals Analisis Perbandingan Kinerja pada Bank Nasional, Bank Campuran, dan Bank Asing yang terdaftar di Bursa Efek Indonesia

2014 ◽  
Vol 5 (2) ◽  
Author(s):  
Christania Graciella Angel
Keyword(s):  
Performance Appraisal ◽  
Stock Exchange ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Bank Performance ◽  
Financial Report ◽  
The Public ◽  
Analysis Technique ◽  
National Bank ◽  
Asset Quality

Bank performance appraisal is based on bank financial report itself. The financial report can be form balance report which give information about the financial position to the outside of bank that can be used of eksternal to assess the level of risk exist in a bank. Based on ownership consist of national bank, mixture bank and foreign bank. These banks has tight compete to show a good performance to the public. This research aimed to analyze the financial performance difference of national bank and foreign bank at the period of 2004 to 2013 with the proxy finance ratio (CAMEL ratio) consist of: Capital, Asset Quality, Management, Earnings, and Liquidity. The population in this research consist of national bank, mixture bank, and foreign bank listed on the Indonesia Stock Exchange at the period of 2004 to 2013 which amount 42 banks. Based on purposive sampling techniques, the number of samples that meet the criteria are as many as 15 banks (5 national banks, 5 mixture banks, and 5 foreign banks). Analysis technique that use in this research is t-test. As the result the usage of proxy CAMEL ratio to analyze comparison bank performance give evidence that mixture bank performance is better than foreign bank and national bank performance.

scholarly journals POLITICALLY CONNECTED BANKS: SOME INDONESIAN EVIDENCE

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Bambang Sutopo ◽  
Irwan Trinugroho ◽  
Sylviana Maya Damayanti
Keyword(s):  
Lower Cost ◽  
Time Effect ◽  
Foreign Banks ◽  
Political Connections ◽  
Bank Performance ◽  
Private Banks ◽  
The Impact

We investigate the impact of being politically connected on bank performance and cost of funding. We study 89 Indonesian banks over the 2001-2008 period disentangled into politically connected banks which can be state-owned banks and private banks as well as non-politically connected banks. Controlling for bank fundamental factors and time effect, we do find that political connections improve bank performance. Moreover, our results provide evidence that politically connected banks are benefited by getting a lower cost of funding. Finally, our result reveals that political connections are less valuable for foreign banks. Keywords: Political Connections; Performance; Cost of Funding; Foreign Banks; Indonesia.

Foreign banks in MENA countries: how important? How relevant?

2016 ◽  
Vol 32 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Positive Impact ◽  
Spillover Effects ◽  
Dynamic Panel Data ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Bank Performance ◽  
Content Type ◽  
Mena Countries ◽  
Domestic Banks ◽  
The Impact

Purpose – The role of foreign banks in impacting the behavior of domestic banks has been a relatively unaddressed topic in the literature. Employing bank-wise data on MENA countries during 2000-2012, the purpose of this paper is to examine how the behavior of foreign banks impact domestic bank performance. For this purpose, the authors focus on not only their profitability and stability, but also on broader numbers such as loan portfolio and funding costs. In addition, the authors also explore the impact of foreign banks on the growth of domestic economies and its implications for the allocation of capital and labor. Design/methodology/approach – The authors employ the dynamic panel data methodology as compared to alternate techniques owing to the ability of this technique to effectively address the endogeneity problem of some of the independent variables. Findings – The results suggest that foreign bank presence exerts significant spillover effects. At the same time, increased foreign banks appear to impel domestic banks to cut back lending. As regards its impact on growth, the results indicate that although labor does not exert any discernible impact on GDP growth, capital exerts a positive impact on output when foreign bank penetration is high, supportive of the real effects of foreign banks. Originality/value – To the best of the authors’ knowledge, this is one of the early studies for MENA countries to examine this issue in a systematic manner. Most studies of this genre focus on a limited set of banks/countries, thereby limiting their empirical evidence. By focussing on an extended sample of MENA country banks covering an extended period that subsumes the financial crisis, the analysis is also able to shed light as to how foreign presence impacts domestic bank performance.

scholarly journals The Impact of Bank Governance on Bank Performance in Pakistan

2011 ◽  
Vol 16 (Special Edition) ◽  
pp. 271-300
Author(s):  
Abid A. Burki ◽  
Shabbir Ahmad
Keyword(s):  
Foreign Banks ◽  
Bank Performance ◽  
Governance Reform ◽  
Mixed Effect ◽  
Cost Frontier ◽  
Governance Changes ◽  
Bank Governance ◽  
Frontier Efficiency ◽  
The Impact ◽  
Unbalanced Panel Data

This study attempts to investigate the impact of changes in bank governance on bank performance in Pakistan. Governance changes entail the privatization and restructuring of state-owned banks, and the merger and acquisition of private and foreign banks. Using the concept of frontier efficiency, we adopt an empirical framework that allows us to study the impact of all governance reform variables in the same model. First, we estimate a stochastic cost frontier model using unbalanced panel data on commercial banks for the period 1991–2005. Second, we decompose banks’ total factor productivity (TFP) change into its different components, using the estimated frontier. In general, the results show an improvement in banks’ cost efficiency following changes in bank governance. We note that governance changes bring about an improvement in banks’ TFP vis-à-vis that of banks that did not undergo governance changes. We find a declining trend in TFP change (TFPC), which could be a consequence of the banking industry’s increased profitability. We also note that bank selection for governance changes has a mixed effect on TFPC, while bank consolidation seems to be more effective in improving TFPC.

scholarly journals Bank governance and bank performance in Turkish banking industry: the analysis of static, selection and dynamic ownership effects

2010 ◽  
Vol 7 (4) ◽  
pp. 42-48 ◽  
Author(s):  
F. Dilvin Taşkin
Keyword(s):  
State Ownership ◽  
Foreign Banks ◽  
Bank Performance ◽  
Dynamic Effects ◽  
Consolidation Process ◽  
Foreign Acquisitions ◽  
Long Term Performance ◽  
Term Performance ◽  
Domestic Mergers

Turkish banking has undergone a rapid consolidation process in the forms of domestic mergers and acquisitions and foreign acquisitions. This paper analyzes the effects of corporate governance on the performance of the Turkish commercial banks, using the data from 1995 to 2008. The paper considers the static, selection and dynamic effects of domestic, foreign and state-ownership on bank performance. The results show that state-owned banks have strong long-term performance, whereas the foreign banks have poor long-term performance. The selected banks for domestic M&As and for foreign acquisitions tend to perform better. The dynamic indicators show that the merged banks show inferior performance than their counterparts.

The influence of earnings management and bank structure on bank performance

2017 ◽  
Vol 43 (7) ◽  
pp. 761-773 ◽  
Author(s):  
Nacasius U. Ujah ◽  
Jorge Brusa ◽  
Collins E. Okafor
Keyword(s):  
Earnings Management ◽  
Emerging Market ◽  
Negative Influence ◽  
Foreign Banks ◽  
Monopoly Power ◽  
Bank Performance ◽  
Loan Loss ◽  
Content Type ◽  
Bank Structure ◽  
The Usa

Purpose The purpose of this paper is to examine the influence of bank structure and earnings management on bank performance in international markets. Specifically, the authors empirically examine non-foreign banks in the following emerging countries: Brazil, China, India, Mexico, Nigeria, Russia, and South Africa. Design/methodology/approach A review of loan loss portfolio and bank’s power structure is examined to formulate testable conjectures. The authors used data collected from Bankscope for the aforementioned countries. The data range is from 1997 to 2009. Findings The results suggest that: first, bank market structure and earnings management have a significantly negative influence on bank performance. Second, the negative influence is more pronounced in banks with higher level of concentration and earnings management. Practical implications The evidence suggest that banks with monopoly power have a greater incentive to establish lending relationships, and monopoly enhancing regulation in the financial sector at the time of the Civil War contributed to industrialization in the USA. The evidence in the emerging market suggest that monopoly power (bank structure) and propensity to manage earnings leads to lower bank performance. As such, helping bankers in understanding the effect of their bank structure in relation to their performance. Originality/value To the author’s knowledge, this is the first study that explores the determinants of managed earnings and bank structure on bank performance in emerging markets.

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

Fraud and Bank Performance in Nigeria – Var Granger Causality Analysis

e-Finanse ◽  
2020 ◽  
Vol 16 (1) ◽  
pp. 20-26
Author(s):  
Taiwo A. Muritala ◽  
Muftau A. Ijaiya ◽  
Olatanwa H. Afolabi ◽  
Abdulrasheed B. Yinus
Keyword(s):  
Control Systems ◽  
Granger Causality ◽  
Internal Control ◽  
Banking Sector ◽  
Bank Performance ◽  
Causality Analysis ◽  
Vector Autoregressive ◽  
Granger Causality Analysis ◽  
Long Run ◽  
Multivariate Cointegration

AbstractThis paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected.

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