scholarly journals The Impact of Business Intelligence on Strategic Performance in Commercial Banks Operating in the Sate of Kuwait

2020 ◽  
Vol 13 (8) ◽  
pp. 91
Author(s):  
Hamad Salem Al-Merri
Keyword(s):  
Data Storage ◽  
Business Intelligence ◽  
Commercial Banks ◽  
Analytical Approach ◽  
Banking Sector ◽  
Data Extraction ◽  
Commercial Banking ◽  
Strategic Performance ◽  
The State Of Kuwait ◽  
The Impact

This study aimed to identify the impact of business intelligence on strategic performance in commercial banks operating in the State of Kuwait the researcher used the descriptive analytical approach to introduce both business intelligence and strategic performance. The study population consisted of employees working in top and middle management in commercial banks operating in State of Kuwait. Stratified random sample amounting 363 subjects was used. 270 questionnaires were collected representing 74.3% of the total sample. The study concluded that business intelligence system ensures data processing using data storage techniques and data extraction to obtain consistent and qualified information, thus providing the required knowledge to achieve the strategic goals and objectives by end users and executives in the future. The researcher recommends that Kuwaiti banks should keep pace with developments in the field of business intelligence to be employed in a better way in enhancing its strategic performance, in addition to conduct future studies that follow the analytical approach to deepen its utilization in Kuwaiti commercial banking sector.

scholarly journals The Threats of Unsystematic Risks in Jordanian Commercial Banking Sector

2017 ◽  
Vol 9 (9) ◽  
pp. 175
Author(s):  
Ghaith N. Al-Eitan ◽  
Ismail Y. Yamin
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Sector ◽  
Fixed Effect Model ◽  
Commercial Banking ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Effect Model ◽  
The Impact ◽  
The Empirical Analysis

The objective of this study is to empirically examine the effect of unsystematic risks on the performance of commercial banks in Jordan, using panel data for the period of 10 years (2005-2015). The study uses earning per share and dividends as dependent variables to represent Banks’ performance. The empirical analysis based on the fixed effect model selected on the basis of Hausman test. The results indicate that the impact of Non-performing loans on commercial banks’ dividends is positive and significant while the impact of capital adequacy is negative and statistically significant on dividends. The results indicate that the credit risk, liquidity risk, non-performing loan and capital adequacy have significant effect on earnings per share and the effects are negative as expected. Based on the study it is recommended that the Jordanian commercial banks needs enhance the process of credit risk management to determine loan defaulter and impose the appropriate legal action against them.

scholarly journals Impact of Liquidity on Profitability: A Study on the Commercial Banks in Bangladesh

2021 ◽  
pp. 73-90
Author(s):  
Sujan Chandra Paul ◽  
Probir Kumar Bhowmik ◽  
Mehbuba Nayan Famanna
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Annual Report ◽  
Secondary Data ◽  
Substantial Effect ◽  
Commercial Banking ◽  
Medium Term ◽  
Correlation And Regression Analysis ◽  
Statistical Sample ◽  
The Impact

This research aims to investigate the effect of banks' liquidity on its profitability; with the ordinary course of business and in the medium term (10 years). A quantitative analysis is performed on a statistical sample of forty (40) commercial banks in Bangladesh. Secondary data is used to evaluate the performance of the last ten years (2009-2018) of the annual report of the commercial banks in Bangladesh with 206 bank years of data gathered to consider all Bangladeshi commercial banks. Proposed variables are: LDR, DAR, CDR, LAR and CR as liquidity representation; on the other hand, ROE is the profitability representation. Five hypotheses have been established to assess the effect of liquidity on profitability. Following a correlation and regression analysis, it is observed that LDR, DAR and CDR had a substantial effect on the profitability measured as ROE, but LAR and CR proved insignificant. Therefore, it can be concluded that, in general, the impact of liquidity has a significant effect on the profitability in the commercial banking sector of Bangladesh. By relying on this report; Bangladeshi banks will be best positioned to keep equality between its liquidity and profitability. Keywords: Liquidity, Profitability, ROE, Commercial Banks

scholarly journals Determinants of Banks Profitability: Empirical Evidence from Ghana’s Commercial Banking Industry

2021 ◽  
pp. 175-189
Author(s):  
Abdul-Hamid Ahmed ◽  
Kouadio Stephane N’Dri
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Commercial Banking ◽  
Annual Data ◽  
Z Score ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
The Impact

Over the years, Ghana’s commercial banking industry has been bedeviled with numerous challenges. The unbridled effect of this is the 2018 banking sector megrim which led to the collapse of seven major banks. This pointed out that it is very crucial to identify and mitigate the factors that negatively affect the performance of the banking sector. This paper is used to investigate the effect of banks specific variables (BSVs) and macroeconomic variables (MEVs) on the profitability of commercial banks (NIM, ROE, and ROA) in Ghana using FRED annual data of 25 years. In order to avoid endogeneity problems and aggregation bias, we used the SURE model to run the estimates simultaneously. The result reveals that profit earned by Ghana’s commercial banks is largely influenced by both internal factors such as KA, AQR, LMGT, MEFFI, and Z-Score and fluctuations in the macroeconomic environment (GDP and FOREX). The impact of KA, LMGT, MEFFI, and Z-score is significantly positive whereas AQR (NPLs) is found to have a negative effect on banks profitability. GDP has a significant negative impact on Ghana’s commercial bank’s profitability whiles forex induced commercial banks profitability positively, but inflation CPI does not determine the profitability of commercial banks in Ghana.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

scholarly journals Examining banking productivity drivers in MENA banks after financial liberalisation in 1990s

2019 ◽  
Vol 8 (1) ◽  
pp. 59-74
Author(s):  
Hatem Elfeituri
Keyword(s):  
Commercial Banks ◽  
Technological Progress ◽  
Banking Sector ◽  
State Ownership ◽  
Scale Efficiency ◽  
Efficiency Change ◽  
Mena Countries ◽  
Financial Liberalisation ◽  
The Impact ◽  
Banking Productivity

The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.

scholarly journals The impact of risk factors on the financial performance of the commercial banking sector in Barbados

2018 ◽  
Vol 7 (1) ◽  
pp. 76-93 ◽  
Author(s):  
Anthony Wood ◽  
Shanise McConney
Keyword(s):  
Risk Factors ◽  
Credit Risk ◽  
Financial Performance ◽  
Banking Sector ◽  
Negative Impact ◽  
Interest Rate Risk ◽  
Commercial Banking ◽  
Country Risk ◽  
Risk Variable ◽  
The Impact

The objective of this paper is to determine the impact of risk factors on the financial performance of the commercial banking sector in Barbados using quarterly data for the period 2000 to 2015. The empirical results indicate that Capital Risk, Credit Risk, Liquidity Risk, Interest Rate Risk and Operational Risk have statistically significant impacts on financial performance. The only risk variable which does not derive this result is Country Risk. In addition, of those variables which proxy external factors, only GDP Growth has a statistically insignificant influence on financial performance. Credit risk exerted a negative impact on the banks’ financial performance, thus the banks must ensure they adopt appropriate measures to minimise the impact of this risk. Higher levels of capital impacted positively on the banking sector’s profitability. This paper is the first effort employing such an extensive dataset based on Barbados’ commercial banking sector and shows the main factors that influence commercial banks’ financial performance in this developing economy.

scholarly journals المحددات التي تواجه نظام الرقابة الداخلية في بيئة المصارف التجارية

2017 ◽  
Vol 3 (4) ◽  
pp. 179
Author(s):  
Journals UHD ◽  
Dana Akram Faqe Mahmood ◽  
Shilan Arf Ahmad
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Commercial Banks ◽  
Banking Sector ◽  
Commercial Banking ◽  
Negative Effects ◽  
Internal Auditor ◽  
Regulatory Systems ◽  
Policies And Procedures ◽  
Banking Institutions

This study was conducted to examine the work of internal control systems in banking institutions. It focused on studying the determinants facing the internal censorship system in the commercial banking sector by identifying the deficiencies and shortcomings in the regulatory systems and their negative effects from financial and administrative failure, the overall weak performances and etc, and also by determining the main reasons and obstacles that prevents the application from development of the internal censorship systems in commercial banks. A practical study had been made on a sample of the commercial banks operating in Sulaymaniyah governorate .In order to achive the goal, five commercial banks were used to collect the data from. The researchers used questionairre while collecting data in which they entered the information and data were processed automatically and through statistical models in order to test hypotheses and prove them. The results of the statistical analysis showed that there is a strong correlation between the variables of the research hypothesis and the internal censorship's objectives and the constraints facing to their application in the commercial banking sector of a degree at (0.607). The results showed that the increase of the determinants of the work of internal censrorship systems affected the achievement of the objectives that pursuied by the internal censorship in commercial banks in specifics. The researchers reccomended that there should be a commitments to the laws , accounting policies and procedures that applied to protect the assets especially by the commercial bank's management and to detect errors , fraud and manipulation to support the independency of the work of internal auditor and activate its role to achieve the objectives targeted by the internal censorship systems in commercial banks.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

scholarly journals Role of Business Intelligence in Banking Sector for Achieving Competitive Advantage- An Empirical Analysis

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Competitive Advantage ◽  
Business Intelligence ◽  
Quantitative Research ◽  
Banking Sector ◽  
Statistical Tests ◽  
Firm Strategy ◽  
Middle Level ◽  
Mediating Role ◽  
The Impact

With recent advancements in information technology, organizations’ capability to acquire and analyze data for efficient decision making has increased. Good strategies promote alignment among processes and technology in use, which may result in better firm performance. However, there has been little focus on how firm strategies and business intelligence (BI) systems might play their part in forming organizational information and getting a competitive edge. Therefore, the purpose of conducting this study is to investigate the impact of firm strategy on firm competitive advantage with mediating role of BI adoption and moderating role of BI capabilities. For this, a quantitative research methodology was used, and data was collected from 300 middle-level managers in Pakistan's telecom sector. Statistical tests such as descriptive statistics, correlation, reliability analysis, one-way ANOVA, confirmatory factor analysis, and mediation analysis through Hayes process were performed using SPSS and AMOS. The findings revealed a positive link between firm strategy and competitive advantage, with business intelligence adoption serving as a mediating factor. Business intelligence capabilities positively moderate the relationship between BI adoption and competitive advantage. Hence, all proposed hypotheses (H1, H2, and H3) were approved. The contribution and Limitation of the study are also discussed.

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