Sectoral Loans and Bank Performance in Nigeria (Published)
The study examined the effect of Sectoral loans on commercial banks performance in Nigeria using time series spanned data over a period, 1990-2018. Secondary data were sourced from the central bank of Nigeria statistical bulletin 2018. Hypotheses were formulated and tested using Augmented Dickey-Fuller, co-integration, and the error correction mechanism tests. Specifically, the sectors looked into in this study are Agriculture/forestry, manufacturing, and mining/Quary sector respectively, while interest rate was included as control variable. The result indicates that agriculture, manufacturing, and mining sectors have linear and insignificant effect on bank performance proxied by return on asset; while interest rate has negative effect on bank performance for the period under review. Furthermore, Johansen co-integration test result indicates the existence of four cointegrating long run relationship among variables selected in this study. It is proffered that Government should strengthen institutions that are charged with the responsibility of granting loans and advances to agriculture sector because of its associated benefit not only to the banks but the economy at large. The bank of industry (Boi) and the central bank of Nigeria should as a matter of urgency create enabling business environment for manufacturing companies to access cheap funds so as to enhance business growth and innovations. Interest rate for agriculture, manufacturing and mining sector should be reduced to a single digit so as to encourage these sectors to grow.
The Industry 4.0 Factor Affecting The Service Quality of Commercial Banks in Dong Nai Province (Published)
Vietnam has favorable conditions for access to join the 4.0 industrial revolution (Industry 4.0). Vietnam has a young population structure, most of them live in rural areas but the level of education and access to new technology services by Vietnamese people is quite high compared to other countries in the world. The percentage of people using mobile phones is also high, with more than one mobile subscriber per capita. In that context, the banking service quality sector in general as well as the payment sector in particular has witnessed the strong impact from Industry 4.0, together with the introduction of a number of new technology applications. In the field of finance – banking (Fintech); Commercial banks have brought many opportunities and challenges for the banking industry, including payment operations in Vietnam. The study results showed that there were 200 staffs related to commercial banks who interviewed and answered about 9 questions. Data collected from July 2016 to July 2017 for the staffs of commercial banks in Dong Nai province. The paper had been analyzed KMO test, Cronbach’s Alpha and the result of KMO analysis which used for multiple regression analysis. Bank staffs’ responses measured through an adapted questionnaire on a 5-point Likert scale (Conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree). Hard copy and online questionnaire distributed among 50.000 the staffs of commercial banks in Vietnam. In addition, the exploratory factor analysis (EFA) results showed that there were two factors, which included of factors following: Industry 4.0 human resources (X1) and Industry 4.0 network security (X2) with significance level 5 percent. In addition, all of two components affecting the service quality of commercial banks with significance level 5 percent. The research results processed from SPSS 20.0 software.
In Vietnam, commercial banks have limited administrative capacity, facing huge risks, affecting the economy. This fact requires each bank to continuously improve its governance capacity to compete not only with local banks but also with international credit institutions. Besides, the ability to mobilize and structure capital is one of the criteria for assessing the business performance, competition of commercial banks in terms of capital mobilization and reputation in the financial market. Good capital mobilization is the ability to occupy and expand the market share of commercial banks through the types of products to attract deposits from customers. Moreover, the large scale of capital and reasonable structure will allow commercial banks to develop business activities such as lending, investment and other financial services. Capital mobilization is determined by the size and growth of capital resources over time. In addition, the research results showed that there were 200 commercial bank managers who interviewed and answered about 12 questions. The Data collected from 15/07/2016 to 15/06/2017 in Ho Chi Minh City. The researcher had analyzed Cronbach’s alpha, KMO test, the result of KMO analysis used for multiple regression analysis. The research results were processed from SPSS 20.0 software. Finally, the researcher has recommendations improving the competition of commercial banks in Ho Chi Minh City for the next year.
Recommendations Developing the Internet Banking Services Of Commercial Banks in Ho Chi Minh City (Published)
Over the past years, the banking and finance sector in Vietnam has seen strong changes. The scale and network of commercial banks have been expanded more quickly. The number of customers using internet banking services has also increased. Besides, the strong penetration of information and communication technologies into the finance and banking sector has recently created new hi-tech products and services such as payment services by Internet. The benefits of electronic banking are enormous thanks to fast, accurate and secure. Along with the trend of using ATM cards, in the last few years, Internet banking has been developed as a financial and banking channel for all types of individuals and businesses. Internet banking services are helping customers own financial resources anytime, anywhere. Moreover, the research results showed that there were 300 commercial bank customers who interviewed and answered about 14 questions. The Data collected from 05/06/2016 to 15/06/2017 in Ho Chi Minh City. The researcher had analyzed Cronbach’s alpha, KMO test, the result of KMO analysis used for multiple regression analysis. The research results were processed from SPSS 20.0 software. Finally, the researcher has recommendations supporting the sustainable development of internet banking services at commercial banks in Ho Chi Minh City.
Assessment of Automated Teller Machines (ATM) At United Bank for Africa (UBA) Osun State, Nigeria (Published)
The study explores the use of automated teller machines (ATM), service at United Bank for Africa Osogbo branch. To carry out the research, survey (ex – post – facto) research design was adopted. The target population for the study comprises all commercial banks in Osun state Nigeria but because of time and cost implications, two hundred (200) customers were randomly selected to constitute the sample population for this study. An instrument tagged” Assessment of Automated Teller Machines” was used to collect the data for the study. The instrument is self – constructed by the Researchers. The data collected were subjected to statistical scrutiny such as Mean, Mode, median, Frequency count, percentage spread and standard deviation. The main statistical method used to analyze the data and answer research question is Chi – square statistics. The finding reveals that majority of the subscribers of the ATM prefer it to counter services. On the basis of this finding it was concluded that frequent breakdown, irregular network service, problem of accessibility and limited withdrawal for a day are the main factors contributing to underutilization of ATM services at the bank. It is therefore recommended an improvement in service connected to the use of the facility. Management of the bank was advised to make all ATM transaction and subscription free; fine – tuned master cards are to be in online shopping and all sales outlet across the country at all branches in Nigeria.
Factors Influencing the Choice of Commercial Bank among Transport Workers in Anambra State Nigeria (Published)
This study was conducted to identify the factors (technical, functional and environmental) that influence the bank selection decision of transport workers in Awka, Anambra State. Competition in banking sector is increasing day by day and this forces the banking sector to identify and satisfy new markets to increase their customer base and market share. Data were collected through self-administered questionnaire to three hundred (300) transport workers in Awka environment, capital of Anambra State. Descriptive statistics and ANOVA were used to analyze data. Out of twenty eight (28) factors studied it was found out that secure feeling, bank reputation, continuous information flow, efficient service and confidentiality are the most important influencing factors in choosing a bank among the transport workers in Awka, Anambra State Nigeria. Using the three dimensions of services factors, that is, technical, functional and environmental; it shows that technical factors have significant influence, followed by functional factor, while Environmental factors have no significant influence on transport workers. We recommend that banks located in Awka, Anambra State that wants to serve the transport workers should consider the five most important factors as an invaluable strategic tool for marketing strategy design. They should emphasis more on what the customer received, than the way in which the service is deliver and the physical environment of the bank.
Effects of Monetary Policy on Bank Lending in Nepal (Published)
Bank lending and monetary transmission mechanism are closely interlinked phenomena. Banks cannot be efficient in their performance without analyzing the impact of monetary policy actions. On the other hand, central bank cannot take appropriate policy actions without having appropriate knowledge of bank lending behavior. This study attempts to find out the impact of monetary policy actions such as cash reserve ratio, open market operations and bank rate on bank lending. In the study, panel data of 24 commercial banks during the period of 1996 to 2015 were collected and analyzed using descriptive statistics, correlation and regression analysis. This analysis shows that open market operations and cash reserve ratio have negative impact but bank rate has positive impact on bank lending. Therefore, the central bank of Nepal should rely mostly on open market operations and cash reserve ratio for monetary operation. Further, the study recommends that central bank should hold cash reserve ratio constant as a cushion for the borrowers from fluctuating lending rates by commercial banks. However, since excessive borrowing will have inflationary effect in the economy, the study recommends that central bank commit commercial banks to open market operations to control short term interest rate and money supply in the economy.
Voluntary Information Disclosure in the Annual Reports of Libyan’s Commercial Banks: A Longitudinal Analysis Approach (Published)
This study aims to measure the level of voluntary information disclosure in 54 annual reports of listed and unlisted Libyan’s commercial banks, over a six-year reporting period (2006-2011). It also examines if there has been any significant improvement in the levels of voluntary information disclosure provided in the annual reports, using a longitudinal analysis approach. To measure the voluntary disclosure level, this study develops a scoring sheet comprised of 63 voluntary information items and a dichotomous scoring method was applied. A longitudinal analysis shows that the extent of all five types of information disclosures is low, with an average of 38%, however there was an improvement in the general level of voluntary disclosure and its categories over a six-year period. In addition, it shows that the level of background information is the highest level of voluntary disclosures over the periods of the study and the level of corporate social information is the lowest level of voluntary disclosure in the annual reports of the study time periods. This research project is to help develop the existing disclosure literature in relation to the banking sector, which is currently sparse due to the limited empirical research studies on the extent of banking disclosure and its developments.
The Effects of Deposits Mobilization on Financial Performance in Commercial Banks in Rwanda. A Case of Equity Bank Rwanda Limited (Published)
This study is about to establish the effects of deposit mobilization on the bank financial performance in commercial banks in Rwanda. A case study of Equity bank Rwanda limited. Deposits are an indispensable tool commercial banks use to enhance its profitability through advancing deposits mobilized to its customers in form of loans which make in return interest to commercial banks. The lending activity is made possible only if the banks can mobilize enough funds from their customers. Specific objectives of this study are to determine the effect of marketing strategies on the financial performance of commercial banks in Rwanda, to establish the effect of interest rate changes on the financial performance of commercial banks in Rwanda and to determine the effect of banking technology introduced on the financial performance of commercial banks in Rwanda. The target population for the study was the bank managers involved in deposit mobilization namely the marketing team and the branch management team in Equity bank Rwanda. The research used a census to study a population of 27 staff. The main source of data was the primary and secondary data. The documentary method, the questionnaire as research instruments were used to get the data needed for the research. Data were processed by use of descriptive statistics after editing have been done. The computer software SPSS version 20 was used as a device to accommodate analysis. Pearson and Spearman’s correlation analysis was used to test the nature of relationship. The findings indicated that majority of the respondents (85%) confirmed that the brand name of the Equity Bank is recognized in the public this has made able overcoming challenges mostly facing high competition with other banks. The marketing strategy used made the bank to increase in terms of customers and it has led to the increase in deposits over the years. The findings also indicated that a positive change in deposits interest rate affects the level of deposits received and later on the profitability of the bank. The study revealed that the introduction of innovative banking technology has led to the increase in deposits at a low cost as opposed to the usual way of getting deposits through term deposits and made financial services accessible in the unbanked people. This also made the ROA, ROE, net profit increasing due as the loans volume increases. The statistical correlation revealed that there is a positive relationship between deposits mobilization and financial performance of commercial banks in Rwanda, the case of Equity Bank. The study recommends the bank to develop other strategies towards marketing and mobilize more deposits as they are indispensable tools towards the profitability of the bank.
The Current Ethical Challenges in The Nigerian Commercial Banking Sector (Review Completed - Accepted)
Ethics and morals are seen as personal view points. No minding the viewpoint, south ethical and moral values are very relevant in the banking industry. Ethics consist of certain rules and standards of conduct recognised as binding in a professional body, association or organisation, which is binding in the members. This paper discusses the relevant functions of commercial banks, and the ethical challenges in the performance of these functions. It evaluates the current ethical challenges in the banking industry, discusses the roles various regulatory agencies, have to play, in the adherence to ethical values, and advances solutions that will combat the aforementioned ethical and unethical challenges for the commercial banks to survive, ethical and moral values must be respected and adhered to, and sanctions meted out to erring individuals, that disobey the rules. This paper is descriptive in nature as it examines, the ethical issues, challenges and recommendations involved in ethical practices by commercial bankers in Nigeria. It proffers far reaching solutions to these ethical/unprofessional challenges in the commercial banking sector in Nigeria
An Empirical Evidence on impact of Credit Management, Liquidity Position and Profitability of Nigerian Banking Sector (Review Completed - Accepted)
The study critically examines the relationship between credit management, liquidity position and profitability of some selected banks in Nigeria using annual data of ten banks over the period of 2006 to 2010. Time series properties of all variables used in the estimation were examined through Augmented Dickey Fuller (ADF) test in order to obtain reliable results. It shows that all the variables were stationary and significant at first differences. The results from Ordinary Least Square (OLS) estimate found that current ratio is positively related to debt ratio and significant at 1% level. This confirms the alternative “risk absorption” hypothesis, which stipulates that efficient credit management enhances firms’ ability to create liquidity. In addition, the result shows that ROA has signiﬁcant positive effect on current ratio confirming the “financial fragility – crowding out” hypothesis which stipulate that the ability of firms’ to maintain certain degree of liquidity reduces firms’ profitability enhancement. This conclusion has important policy implications for emerging countries like Nigeria as it suggests that when a company’s credit policy is favourable, liquidity is at a desirable level and lastly, the findings revealed that companies should ensure the monitoring and regular review of their credit policy and the allowance of cash discounts should be minimized as much as possible.
The purpose of this study was to investigate the impact of compatibility and connectivity of Information Technology Infrastructure (ITI) on reliability and access of customer service delivery in the Nigeria commercial banks. The study selected 8 commercial banks out of the 20 commercial banks in Nigeria as to generalize her findings. The study conveniently selected 40 customers’ from the eight banks, thereafter a total of 40 copies of the questionnaire that is 5copies per banks was randomly distributed to the 40 customers of the banks and the 40 questionnaire were fully attended to and retrieved. Simple percentages, tables were used to analyze the respondent demographics, while the Spearman’s rank order correlation coefficient was used to analyze the four hypotheses; this was made easy with the use of statistical package for social sciences SPSS. The findings therefore revealed that compatibility and connectivity of ITI has strong and positive impact on reliability and access of customer service delivery. Therefore, the study has bridged knowledge by revealing that the two component of ITI used in this study impact on the two components of customer service delivery as used in this work. We, recommended that commercial banks should improve on their ITI compatibility and connectivity by training and retraining their IT personnel to be responsive to customer’s complaints, also should overhaul their ITI facilities regularity in other words by improving their facilities, so as to deliver quality service and access to service.