Perception of Riau Muslim Entrepreneurs on the Merger of Islamic Commercial Banking into Indonesian Islamic Bank

<div class="WordSection1"><em>The purpose of this study is to further examine the perceptions of Muslim entrepreneurs in Riau towards the merger of a Islamic Commercial Banking to become an Indonesian Islamic bank. The method used is a qualitative method generated from a questionnaire filled out by Muslim entrepreneurs in Riau Province, explaining the perception of Riau Muslims about the merger of Islamic banks under BUMN. The results of this study indicate that the perceptions of Muslim entrepreneurs in Riau towards the joining of Islamic banks as BUMN, in this case Bank Syariah Mandiri, BNI Syariah and BRI syariah to become Bank Syariah Indonesia which is abbreviated as BSI in general have different perceptions, there are still many who disagree. by joining the Islamic Bank under the BUMN. Entrepreneurs are also not too sure about the joining of the Islamic Bank to become the icon and direction of the World Islamic Bank, they think that the joining of the Bank is influenced by political elements among the political elite. However, Muslim entrepreneurs in Riau on average will still become customers of Indonesian Islamic Bank, because apart from being a Islamic bank, there is no better choice than other banks.</em><br /><strong> </strong><br />Tujuan penelitian ini adalah untuk mengkaji lebih jauh persepsi pengusaha muslim Riau terhadap penggabungan Bank Syariah BUMN menjadi bank syariah Indonesia. Metode yang digunakan adalah kualitatif yang dihasilkan dari kuisioner yang diisi oleh para pengusaha muslim yang ada di Provinsi Riau, menjelaskan mengenai persepsi muslim riau terhadap mergernya bank syariah di bawah BUMN. Hasil penelitian ini menunjukan bahwa persepsi pengusaha muslim riau terhadap bergabungnya bank syariah di bawah BUMN dalam hal ini Bank Syariah Mandiri, BNI Syariah dan BRI syariah menjadi Bank Syariah Indonesia yang disingkat menjadi BSI secara umum memiliki persepsi yang berbeda-beda, masih banyak yang tidak setuju dengan begabungnya Bank Syariah BUMN tersebut. Pengusaha juga tidak terlalu yakin dengan bergabungnya Bank Syariah tersebut menjadi icon dan kiblat Bank Syariah dunia, mereka menganggap bergabungnya Bank banyak dipengaruhi oleh unsur politis dikalangan elit politik. Namun pengusaha muslim Riau rata-rata tetap akan menjadi Nasabah Bank Syariah Indonesia, karena selain merupakan bank syariah, dan tidak ada pilihan lain yang lebih baik dari bank lain.<br /><strong> </strong><br />Kata Kunci: Persepsi, Pengusaha Muslim, Merger, Bank Syariah.</div><p align="center"><strong><br clear="all" /></strong></p>

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

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.

Switzerland: Formalizing Banking Supervision in the Aftermath of a Crisis, Better Late Than Never

This chapter deals with the formalization of banking supervision in Switzerland, which occurred throughout the twentieth century in a three-step process. First, between 1914 and 1931, the introduction of formal banking supervision, including a detailed Banking Act enforced by an authority, was discussed but was rejected under the influence of leading bankers. Second, in the aftermath of a severe banking crisis in 1931–1934, the resistance of bankers was undermined and a federal law on commercial banking, featuring the setting up of a new supervision agency, was adopted. Third, until the late 1970s, despite the existence of a legal code and a designated authority, the formalization was still incomplete, because the agency was lacking the formal capacity and resources to guarantee an effective enforcement of financial regulation. During that period (1930s–1970s), policymakers were unable to remove the flaws of the supervisory regime because of the strong preference of the main stakeholders (commercial banks, banking supervisors) for the existing system.

Technology Playfulness and Anxiety as Motivators and Hindrances of SST Adoption: Commercial Banking Sector in Sri Lanka

The swift growth of technological improvements has supported the continuing transformation of the service sector, in its conversion from conventional physical service encounters handled by service professionals into customer-controlled self-service technologies (SSTs). Even though prior research attempts have been made in assessing the acceptance of technology in general, the insufficient focus is placed on self-service technologies. Further, understanding the target customer is crucial with the fierce competition existing in the market sided with the development of technology. Therefore, the purpose of this study is to investigate which elements comprise the customers’ technology playfulness and anxiety and how it influence the use of self-service technologies in the Sri Lankan commercial banking sector. The study undertook a qualitative approach with 50 semi-structured interviews from Western province banking customers who use SSTs utilizing a non-probabilistic purposeful sampling strategy. The data were analyzed using the technique of thematic analysis. The findings revealed “Enjoyment”, “Fun”, “Innovativeness”, “Entertaining”, “Creativity”, “Pleasure” and “Appealing features” as the seven themes of technology playfulness motivating the use of SSTs and “Transaction doubts”, “Elderly difficulties”, “Verification doubts” and “Security doubts” as the four themes of hindering factors towards the use of SSTs in the banking sector. The findings would contribute to the literature gap on the customer movement towards self-service technologies. Insights from the study would support the practitioners in understanding how to improve with the proper use of technology and delivery of self-service technologies in the commercial banking sector of Sri Lanka.

Analysis of Chinese Commercial Banks’ Risk Management Efficiency Based on the PCA-DEA Approach

As a special type of enterprises with high risks, Chinese commercial banks’ risk management plays an important role in banks’ business process. Measuring and improving the risk management efficiency of the Chinese commercial banking system has recently attracted increasing interest. Previous studies analyze the business performance of commercial banks from the perspective of the overall management level of banks, and few articles focus on the risk management ability of banks. This paper evaluates the technical efficiencies of Chinese commercial banks’ risk management by the DEA-BCC model with window analysis to come up with some recommendations for policy makers. The technical efficiency is then decomposed into pure technology efficiency and scale efficiency. According to the banking risk supervision indicators released by the China Banking Regulatory Commission, we choose the indicators of 26 commercial banks’ risk management during the period of 2011 to 2019. Principal component analysis (PCA) is applied to delete redundant input indicators. The paper gives a dynamic evaluation of technology efficiency, pure technology efficiency, and scale efficiency. The main empirical results are as follows: (1) the technical efficiency of Chinese commercial banks’ risk management is low, and the differences among three different types of banks are large. (2) The pure technology inefficiency of Chinese commercial banks’ risk management has become a key factor restricting the improvement of the risk management of the Chinese banking industry. (3) The Chinese commercial banks’ risk management faces a serious problem which is economies of scale. (4) The technical efficiencies of Chinese commercial banks’ risk management fluctuate greatly, and management capabilities need to be enhanced urgently.

To the problem of using an automated workplace by people with disabilities

Introduction. Employees of the banking sector with health restrictions have negative experience of using internal software to interact with customers and perform their official duties. Many employees, for example, with hearing problems, would like to work in call centers, but do not have this opportunity due to the outdated software. The research objective is to analyze the priority tasks for the further development of software products, taking into account the existing health problems of employees.Materials and Methods. One of the subsystems of the automated workplace (hereinafter referred to as the AWP) was selected the software, which allows the employee to interact directly with the clients of the given organization. The analysis used the method of expert evaluation by T. L. Saati with the assistance of one of the experts in the development of software for people with disabilities.Results. Using the fundamental preference scale and expert opinion in the field of software development for people with disabilities, a priority matrix was built for each of the criteria (subtitles, simplified fonts, voice guidance, simplified and remote management) and platforms (IOS, Android, Windows OS), as well as a global priority matrix for all criteria and platforms.Discussions and Conclusions. An expert assessment of several characteristics of the software of a commercial banking organization of the Russian Federation was carried out to identify the disadvantages of using the software by employees with disabilities. During the analysis, intermediate conclusions were made: the most demanded criterion for people with hearing problems is “Subtitle”; for people without the ability to leave the house — “Remote control”; for people with amputations or irreversible limb injuries — “Simplified control”. The other parameters are not recommended for implementation.

The Silent Discrimination against Headscarved Professionals in the Turkish Labor Market: The Case of Women in the Banking Sector

This study addresses the widespread discriminatory policies against headscarved professionals in the Turkish job market, by focusing on the female-intensive banking sector. Although the number of professionals wearing headscarves has increased since 2013 with the removal of the ban on headscarves for workers in the public sector, we argue that significant ideological discriminatory practices and bias against these women still exist. To expose this hidden reality and uncover its dynamics, we undertook exploratory in-depth interviews with 30 professionals from the Turkish banking sector, including both men and women. Our findings verify a severe underrepresentation of headscarved professionals in the commercial banking sector. Whereas, after 2013, state-owned banks began, to some extent, to recruit women wearing the headscarf, private commercial banks have not amended their exclusionist policy towards headscarved white-collar employees. Research findings confirm that in the Turkish banking sector, policies regarding the headscarf are still shaped by ideological corporate values. This study suggests that the appointment and promotion of female professionals in the Turkish banking sector are blocked by long-established stereotypes and prejudices, which stand in the way of inclusive practices supporting social equity, as well as diversity and the equality of women in the workplace.

Contemporaneous or causal? Evaluating the triumvirate of insolvency risk, capitalization and efficiency in Indian commercial banking

PurposeThis paper empirically examines the short-term and long-term associations between risk, capital and efficiency (R-C-E) in the Indian banking sector across 2008–2019 to answer the presence of causation or contemporaneousness in the R-C-E nexus.Design/methodology/approachThe paper focuses on three objectives. First, the authors determine short-term causality in the risk–efficiency relationship by studying the simultaneous influence of a wide array of banking risks on DEA-based technical and cost efficiency in static and dynamic situations. Second, the authors introduce bank capital and contemporaneously determine the interplay between R-C-E using seemingly unrelated regression equation (SURE) and three-staged least squares (3SLS). Last, the authors assess stability in inter-temporal associations using Granger causality in an autoregressive distributed lag (ARDL) generalized method of moments (GMM) framework.FindingsThe authors contend that high capital buffers reduce insolvency risk and increase bank stability. Technically efficient banks carry lesser equity buffers, suggesting a trade-off between capital and efficiency. However, capitalization makes banks more technically efficient but not cost-efficient, implying that over-capitalization creates cost inefficiencies, which, in line with the cost skimping hypothesis, forces banks to undertake risk. Concerning causal relationships, the authors conclude that inefficiency Granger-causes insolvency and increases bank risk. Further, steady increases in capital precede technical and cost efficiency improvements. The converse also holds as more efficient banks depict temporal increases in capitalization levels.Originality/valueThe paper is perhaps the first that acknowledges the influence of the “time” perspective on the R-C-E nexus in an emerging economy and advocates that prudential regulations must focus on short-term and long-term intricacies among the triumvirate to foster a stable banking environment.