Does Financial Inclusion Improve the Banks’ Performance? Evidence from Jordan

Shihadeh, Fadi; Hannon, Azzam; Guan, Jian; Haq, Ihtisham ul; Wang, Xiuhua

doi:10.1108/s0196-382120170000034005

Cited by 39 publications

(79 citation statements)

References 24 publications

(11 reference statements)

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“…Based on the results of the above regression test, the state-owned public bank and the National Private Commercial Bank of the four independent variables are third-party funding ratio variables of the gross domestic product, the ratio of credit to gross domestic product, the number of ATMs and Branch offices have no effect on the banking performance variables that are proscribed with the return on asset (ROA) variable. The results of this study did not support the insulation conducted by (Shihadeh et al, 2018) stating that the number of ATMS and branch offices is able to affect the performance of banks that are proscribed with ROA.…”

Section: B the Simultaneous Significance Tests (Test F)contrasting

confidence: 99%

“…The reason for the low level of credit is one of the complicated requirements and the risk of collateral (IMF, 2014). If a formal financial institution such as a bank can accommodate the needs of the public will ease the application of the loan, then the bank will potentially increase the long-term profit (Shihadeh et al, 2018). Based on theoretical studies above, it can be formulated hypothesis:…”

Section: Credit Ratios On Gdpmentioning

confidence: 99%

“…To improve financial inclusion, financial institutions such as banks and other financial services companies offer a wide range of services that include individual and SME needs through various policies and facilities (Shihadeh et al, 2018). Financial inclusion is considered to be able to help low economic communities to gain easy access to financial services such as savings, credit and insurance, which in turn can promote economic growth…”

Section: Introductionmentioning

confidence: 99%

“…Use of financial services, (iii) product quality and service delivery (GPFI, 2012). The banking industry invests in their resources in order to develop services to meet the needs of the society and to gain a measurable return accomplishment of the bank's own performance (Shihadeh et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Financial Inclusion and Banking Performance in Indonesia

Ditta¹,

Saputra²

2020

jafas

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This study was conducted to examine the impact of financial inclusion and banking performance in Indonesia. The study uses 4 financial inclusion indicators, among others: (i) the ratio of third-party funds to gross domestic income, (ii) the ratio of credit to gross domestic income, (iii) the number of ATMS, (iv) the number of branch offices. Design/methodology/approach: The purposive sampling method is used to select the research sample. The descriptive statistical test and hypothesis test is used to analyze the data using e-eviews program. This research uses the population of data from the National Banking annual report either go public or not during the year 2014 to the year 2018. The study assumed financial inclusion can increase bank performance. Findings: By conducting a regression analysis, researchers found that several indicators of financial inclusion can help improve banking performance using ROA and NIM ratios, as well as some indicators of financial inclusion that do not demonstrate its influence. The results of this study drove banking as one of the formal financial institutions to increase financial inclusion. Banks can earn more profit if financial inclusion increases Practical implications: These findings will be very helpful to government or management to maximize their firm performance using provides services that are able to accommodate the needs of the society, whether it has a small business (SME) and the overall economic development Originality/value: This article provides a new insight of some indicators of financial inclusion that do not demonstrate its influence to banking performance.

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Section: B the Simultaneous Significance Tests (Test F)contrasting

confidence: 99%

Section: Credit Ratios On Gdpmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Financial Inclusion and Banking Performance in Indonesia

Ditta¹,

Saputra²

2020

jafas

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“…In the light of the above, official financial authorities such as central banks encourage banks and other financial institutions to offer financial services that cover the needs of both individuals and small and medium enterprises (SMEs) through issuing different policies and regulations (Shihadeh et. al., 2018).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Financial Inclusion in Egypt: Does It Affect Banks’ Profitability and Liquidity?

Almaleeh¹

2020

IFB

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The purpose of this study is to investigate the association between financial inclusion and levels of profitability and liquidity of Egyptian banks. Two hypotheses are tested; the first is about whether financial inclusion has an impact on the Egyptian banks’ profitability, and the second is about whether financial inclusion has an impact on the Egyptian banks’ liquidity. Data of Egyptian banks for the period from 2012 to September 2018 are used to test the hypotheses of the study. Financial inclusion is measured by the access and usage measures derived from the G20 summit “Global partnership for Financial Inclusion”, profitability and liquidity are measured by multiple agreed-upon measures. The study which employed various regression models reveals that 53% of the variance in the Egyptian banks’ profitability can be explained by the variance in the financial inclusion measures, and that the various measures of banks’ liquidity are significantly affected by financial inclusion.

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Financial inclusion and bank profitability in Sub‐Saharan Africa

2020

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This paper investigates the impact of financial inclusion on banks' profitability in Sub-Saharan Africa. The paper employed the system generalized method of moments (GMM) dynamic pooled estimator for the computation of the parameters using data spanning from 1990 to 2017. The results show that there is an affirmative relationship between financial inclusion index (FINDEX) and bank profitability in Sub-Saharan Africa. This suggests that financial inclusion is a significant driver of banks' profitability in Sub-Saharan Africa. The policy implication of this study is that for banks in Sub-Saharan African countries to increase their profitability and get optimum results from financial inclusion they must formulate policies aimed at promoting financial inclusion. This suggests that banks in Sub-Saharan African countries must be creative and innovative in pursuing financial inclusion policies. Such policies should be targeted at increasing the number of bank branches and ATMs. Banks should also make effort at finding ways of making opening of bank accounts much easier for the vulnerable and marginalized in society by relaxing the requirements for customer identification in specific situations where they may hamper financial inclusion goals and efforts.

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Does Financial Inclusion Improve the Banks’ Performance? Evidence from Jordan

Cited by 39 publications

References 24 publications

Financial Inclusion and Banking Performance in Indonesia

Financial Inclusion and Banking Performance in Indonesia

Financial Inclusion in Egypt: Does It Affect Banks’ Profitability and Liquidity?

Financial inclusion and bank profitability in Sub‐Saharan Africa

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