Business efficiency of the commercial banks in ASEAN

Mongid, Abdul

doi:10.21511/imfi.13(1).2016.06

Cited by 10 publications

(18 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The findings indicate that credit risk has a negative impact on bank performance in both the long and short term. This is consistent with the findings of Muriithi et al (2016) and Amin et al (2014) regarding the negative impact of nonperforming loans on bank performance. However, the findings contradict those of Afriyie (2011) and Ogboi (2013), who found that credit risk positively influences bank performance.…”

Section: Roa Vif 1/vifsupporting

confidence: 92%

Firm-Specific Factors and Performance of Commercial Banks in Kenya

Mwangi¹,

Irungu²,

Mutwiri³

2022

ijird

View full text Add to dashboard Cite

The purpose of this research was to determine the effect of credit risk and income diversification on commercial bank performance in Kenya. Impaired loans and total loans were used to measure credit risk. Net interest income and net non-interest income were used to measure income diversification. The study's population consisted of thirty-nine Kenyan commercial banks. The study, which spanned eight years from 2013 to 2020, relied on secondary data from audited annual financial statements. The collected data was analyzed using descriptive statistics and multiple regression analysis. Based on the findings, credit risk has a significant impact on bank performance. An increase in credit risk tends to lower the bank's financial performance in terms of profitability. The study further examined the impact of income diversification on bank performance. According to the regression results, income diversification had a significant impact on bank performance. The analysis concludes that banks and monetary authorities should devise strategies to ensure that asset quality is appropriately maintained and that non-performing loans are regulated and kept to a minimum to improve their performance. Further, given that over-diversification can affect bank performance by increasing the volatility of returns and default risk, there should be a balance between interest income and non-interest revenue as a source of income.

show abstract

Section: Roa Vif 1/vifsupporting

confidence: 92%

Firm-Specific Factors and Performance of Commercial Banks in Kenya

Mwangi¹,

Irungu²,

Mutwiri³

2022

ijird

View full text Add to dashboard Cite

show abstract

“…The first two factors affect efficiency negatively, whereas the last two variables affect it positively. The findings of this study are consistent with the findings of Berger et al (1993), Imtiaz et al (2019), Khandoker et al (2013) and Mongid (2016). The study contributes to the existing body of knowledge regarding efficiency determinants of non-bank financial services industry by identifying the firm-specific significant factors that affect NBFIs' efficiency from the context of Bangladesh.…”

Section: Conclusion and Recommendationssupporting

confidence: 90%

“…Firms may raise their production by 47.1% while utilizing identical input. Mongid (2016) investigated the factors of cost inefficiency in banks operating in eight ASEAN member nations. For the years 2008–2012, data from 504 institutions were utilized.…”

Section: Literature Review and Research Gapmentioning

confidence: 99%

Determinants of efficiency of non-bank financial institutions: an empirical evidence from Bangladesh

Rahman

Rahman²,

Ahmed³

2023

AJEB

View full text Add to dashboard Cite

PurposeThe purpose of this study is to evaluate the effect of some internal features that influence the efficiency of non-bank financial institutions (NBFIs) in Bangladesh.Design/methodology/approachThe study selected the top 15 Dhaka Stock Exchange (DSE)-listed NBFIs according to purposive sampling. The study period was from 2016 to 2020. Secondary data were collected from annual reports. The cost-to-income ratio was a dependent variable that was used as a proxy of operational efficiency. The ordinary least square regression technique was applied to measure the impact of firm-specific factors on efficiency.FindingsResults showed that number of employees, branch number, firm size and deposit ratio have a significant effect on efficiency at 5% level. The number of branches and employees showed a negative impact, whereas firm size and deposit ratio showed a positive effect on the firms' efficiency. The deposit ratio is negatively related because deposit interest expenses were more than offset by interest income generation through the conversion of deposits into loans.Practical implicationsThe study has practical and policy implications on NBFIs' managers, employees, shareholders, depositors, clients, regulatory authorities and government as efficiency enhancement would bring financial soundness.Originality/valueThis study shed light on some firm-specific factors that can be changed to increase operational efficiency or reduce the cost-to-income ratio. The novelty of the study is that it identified some significant associations between firm-specific factors and the operational efficiency of NBFIs.

show abstract

“…Among all selected variables, size shows the highest standard deviation of 34.2. It is because the difference in the asset size among ASEAN banks is widespread (Mongid, 2016). Table 4 exhibits the correlation results.…”

Section: Results and Interpretationsmentioning

confidence: 99%

Financial Innovation, Sustainable Economic Growth, and Credit Risk: A Case of the ASEAN Banking Sector

Khan

Fareed

Salameh

et al. 2021

Front. Environ. Sci.

View full text Add to dashboard Cite

A dynamic and rapidly changing global financial environment is posing various risks for the banking sector. Therefore, the future of the Association of Southeast Asian Nations (ASEAN) banks depends on how efficiently and effectively they manage these risks. Among these risks, a credit risk is the most crucial risk for the banking sector. Thus, the current study aims to analyze the impact of financial innovation and sustainable economic growth on the credit risk of ASEAN banks. For this purpose, a sample of 4 ASEAN countries from 2011 to 2018 is selected, and by applying a panel-corrected standard error (PCSE) approach, both variables were found to be a significant contributor toward the credit risk. Current research will not only be beneficial for the management of ASEAN countries’ banks but also provide help to the overall financial industry and their respective regulatory bodies to understand the behavior of ASEAN banks’ credit risk regarding financial innovation and economic growth. Thus, this study will play an essential role concerning the stability of the banking sector in the ASEAN region.

show abstract

Business efficiency of the commercial banks in ASEAN

Cited by 10 publications

References 4 publications

Firm-Specific Factors and Performance of Commercial Banks in Kenya

Firm-Specific Factors and Performance of Commercial Banks in Kenya

Determinants of efficiency of non-bank financial institutions: an empirical evidence from Bangladesh

Financial Innovation, Sustainable Economic Growth, and Credit Risk: A Case of the ASEAN Banking Sector

Contact Info

Product

Resources

About