The effect of Euribor on banking profitability: evidence from the Spanish banking system

Boto‐García, David; Álvarez, Antonio; Baños-Pino, José

doi:10.17979/ejge.2021.10.1.7083

Cited by 4 publications

(3 citation statements)

References 65 publications

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“…From a practical perspective, financial performance indicators are essential for investors and decision-makers when shaping their investment strategies (Boto-García et al, 2021;Abu Huson et al, 2024). Hence, there is a pressing need to study these factors to enhance banks' profitability (Jaara et al, 2021;Al-Kayed, 2017).…”

Section: Introductionmentioning

confidence: 99%

Financial performance of Islamic and conventional banks in MENA region: a GLS approach

Jarbou,

Irimia-Diéguez,

Prieto-Rodríguez

2024

JIABR

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Purpose The purpose of this study is to assess and contrast the impact of various factors, including both bank-specific and macroeconomic factors, on the financial performance of Islamic and conventional banks (I&CB) in countries with a dual banking system. Design/methodology/approach A general least square model is applied to a large data set of 103 I&CB operating in the Middle East and North Africa (MENA) region, comprising unbalanced annual panel data spanning the period from 2015 to 2020. The financial performance index (FPI) derived from capital adequacy, asset quality, management efficiency, earnings, and liquidity (CAMEL) ratios is used as the dependent variable. Findings Key factors, such as overhead expenses, gross domestic product (GDP) and retained earnings, exert a substantial influence on the financial performance of both I&CB. Moreover, the findings suggest that certain parameters, including deposits, inflation and cellular banking usage, significantly impact on the financial performance of conventional banks, while bank size specifically affects the financial performance of Islamic banks. Research limitations/implications While this study provides valuable insights, it is essential to acknowledge its limitations. The research focuses on a specific region (MENA) and may not be universally applicable to other geographical areas or banking systems. The study’s findings are based on historical data and might not fully reflect current or future market conditions. Additionally, the choice of variables and methodology may introduce bias or limitations, as with any empirical study. The theoretical implications of the research paper lie in the distinct ethical principles that constitute the foundation of Islamic finance. The ethical opposition to Riba is poised to have extensive implications, influencing market stability, commercial and economic impact and contributing to responsible banking practices within the Islamic banking sector. The study suggests that adherence to these sacred principles not only aligns with ethical considerations but also fosters social responsibility within Islamic banking institutions. This holds significance for broader societal and economic impacts, as responsible banking practices contribute to sustainable and equitable economic development. Practical implications The study underscores the significance of efficient overhead cost management for conventional banks, particularly in the context of a rapidly evolving digital banking environment. The call for adaptation and innovation in operational strategies aligns with the broader principles of efficiency and effectiveness emphasized in Islamic finance. Social implications In essence, the theoretical and practical implications of the study surpass the narrow focus on financial performance, resonating with the broader societal and economic landscape within the Islamic banking sector. The integration of ethical principles not only reinforces the unique identity of Islamic finance but also positions it as a model for responsible and sustainable banking practices in the MENA region and beyond. Originality/value CAMEL ratios are used to build an FPI to evaluate bank performance, providing a more precise and comprehensive assessment compared to traditional return ratios like return on assets or return on equity. Second, the authors conduct a thorough analysis covering factors across bank-specific, financial and macroeconomic dimensions. Thus, the study stands out by not only examining bank-specific factors but also by considering external factors such as GDP, interest rates and the development of the financial sector. The focus on the MENA region allows us to offer generalizable findings, highlighting distinctions between I&CB and considering a period with boom years (2015–2019) and a recession year (2020).

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Section: Introductionmentioning

confidence: 99%

Financial performance of Islamic and conventional banks in MENA region: a GLS approach

Jarbou,

Irimia-Diéguez,

Prieto-Rodríguez

2024

JIABR

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“…Another factor that can impact a person's financial behavior is self-control (N. M. E. Putri & Andarini, 2022). Self-control is the ability to guide one's own behavior, related to one's ability to suppress or inhibit impulsive behaviour (Boto-García et al, 2021). Currently, people are more likely to live consumptively and are not adjusted to their income, and in addition, this is also not supported by controlling the desire to invest or save some of their surplus finances as a way of managing personal finances in supporting the achievement of a prosperous life both now and in the future (Hikmah et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Determinants of BUMN Employee Financial Management Behavior in Surabaya

Herlambang,

Lestari

2023

Ekspektra J. Bisnis dan Manaj.

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The purpose of the research was to determine the effect of personal income, financial knowledge, self control and financial attitude on financial management behavior, the effect of self control, the effect of financial knowledge on financial attitude, the ability of financial attitude to moderate the effect of financial knowledge on financial management behavior, and the ability to age in moderating the effect of financial attitude on financial management behavior. The research was conducted using a quantitative approach, with a total sample of 243 BUMN employees in Surabaya being observed. The data analysis technique was performed using the SmartPls Structural Equation Model (SEM). The results showed that personal income and self control had a significant positive effect on financial management behavior, Keywords: personal income, financial knowledge, self control, financial attitude, age, financial management behavior.

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Section: Introductionmentioning

confidence: 99%

Untitled

2023

Ekspektra J. Bisnis dan Manaj.

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Personal financial behavior can be different due to several factors. BUMN employees in Surabaya have good income, self-control, financial knowledge, and financial attitudes but are faced with the problem of the high cost of living in Surabaya and do not get a pension so good financial management is needed to ensure a good future after retirement. The purpose of the research was conducted to determine the effect of personal income, financial knowledge, self-control, and financial attitude on financial management behavior, the effect of financial knowledge on financial attitude, the ability of financial attitude in mediating the effect of financial knowledge on financial management behavior, and the ability of age in moderating the effect of financial attitude on financial management behavior. The research was conducted with a quantitative approach, with the number of samples observed being 243 BUMN employees in Surabaya. The data analysis technique was carried out with the Structural Equation Model (SEM) SmartPls. The results showed that personal income, self-control and financial attitude had a significant positive effect on financial management behavior, financial knowledge had no effect on financial management behavior, financial knowledge had no effect on financial attitude, financial attitude was unable to mediate the effect of financial knowledge on financial management behavior and age was unable to moderate the relationship between financial attitude and financial management behavior. This can be an appropriate reference for companies and BUMN employees in Surabaya in improving good financial management behavior by increasing income, self-control, and financial attitude.

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The effect of Euribor on banking profitability: evidence from the Spanish banking system

Cited by 4 publications

References 65 publications

Financial performance of Islamic and conventional banks in MENA region: a GLS approach

Financial performance of Islamic and conventional banks in MENA region: a GLS approach

Determinants of BUMN Employee Financial Management Behavior in Surabaya

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