International Finance and Banking

Journal Information
EISSN : 23742089
Current Publisher: Macrothink Institute, Inc. (10.5296)
Total articles ≅ 66
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Mohammad Niaz Morshed, Sardar Md Humayun Kabir, Muhibbullah, Rafia Afroz, Fadhilah Binti Abdullah Asuhaimi
International Finance and Banking, Volume 7; doi:10.5296/ifb.v7i1.15710

Abstract:
Corporate governance is the system by which organizations are directed, monitored and controlled. It is an oversight mechanism to ensure the management team efficiently allocates the organizational resources, so as to protect the interest of shareholders and stakeholders. There is a need for good corporate governance practice to stabilize the performance of financial institutions. This study investigated the influence of corporate governance in banking performance. Panel data analysis has been conducted for the top nine public and private commercial banks operating in Bangladesh for a period of 2009 to 2017. Board size, structure of internal audit committee and capital adequacy ratio were being taken as independent variables to measure the effects of corporate governance whereas return on asset, return on equity and earnings per share were being taken as dimensions for measuring bank performance. Correlation and regression analysis techniques were being used to examine the relationships between corporate governance practices and bank performance. The results indicated that CAR has the greater impact on Bank performance. The information derived from this study can be valuable and will help to enhance the understanding of the governing bodies of financial institutions for accelerating banking performance.
Musaed S. Alali
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i2.16035

Abstract:
This study aims to compare the financial performance between Islamic and conventional banks listed at Kuwait stock exchange over the period 2011-2018 using the modified DuPont model of financial analysis which is based on the analysis of return on equity (ROE). Unlike previous studies where researchers compared the performance on a bank-to-bank basis, this study examines the aggregate ratios of Islamic banks and compare it to aggregate ratios of conventional banks. The study also adds volatility into the model since consistency in returns indicated a more stable sector. Results obtained from this study showed that conventional banks in Kuwait had a better mean performance during the study period in terms of both return on assets (ROA) and return in equity (ROE), Islamic banks also showed a higher deviation in these two ratios resulting in a lower Sharpe ratio. While the results showed no statistically significant mean difference between Islamic and conventional banks in terms of return on assets (ROA), the results also showed a statistically significant difference in mean return on equity (ROE) between the two sub-sectors. On the other hand, Islamic banks showed an impressive improvement in their ratios during the last three years of the study period which impose a real threat to conventional banks in the future.
Peter Ayunku
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i2.14928

Abstract:
This paper investigate whether macroeconomics indicators influences stock price behavior in Nigerian stock market, using an annual time series data spanning from 1985-2015. The study employed some econometric tools such as Augmented Dicker Fuller (ADF) Unit Root test, Johansen’s co integration test, Vector Error Correction Model (VECM) to analyze the variables of interest. The study found out that Money Supply (MS) has an inverse but statistically significant influence on stock prices in Nigerian stock market also Treasury Bill Rate (TBR) has an inverse and statistically insignificant influence on stock market prices. While on the other hand, Market Capitalization (MCAP) has a positive and statistically significant influence on stock prices while Exchange Rate (EXR) has positive but statistically insignificant relationship with stock prices in the Nigerian Stock Market. In view of the above, the study recommends amongst others that monetary authorities should try as much as possible to implement sound macroeconomic policies that would enhance stock market growth and development in Nigeria.
Gazmend Nure
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i2.14897

Abstract:
This work investigated the impact of the bank's liquidity management in the profitability of the bank, considering the fact that different research has found that their relationship is negative in some other positive research. The relationship between these two components depends on the variables used to measure them. In this study are included commercial banks operating in southern and central Europe for the period 2009-2017. Following the study, it was possible to determine which is the optimal level of liquidity that gives us the highest level of profitability, and the results showed that not necessarily the high-level liquidity banks can achieve high-level profitability. The data had non-normal distribution, so as a technique of analysis non-parametric tests were used.
Peter Ayunku
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i1.14883

Abstract:
This study examined the relationship between interest rate liberalization and credit to private sector in Nigeria, using annual time series data spanning from 1986 to 2016. The study employed ARDL (p,q) model as suggested by Pesaran and Shin (1997) to analyzed the data. The study commenced with the Augmented Dickey Fuller (ADF) unit root test and the results reveal that all the variables were integrated at order I (1). While the result of the estimated coefficient reveals that interest rate with the first lag was positive and statistically insignificant. And that a percent increase will lead to a 0.087 percent increase in the dependent variable (interest rate). In the same vain Inflation rate has a negative influence on interest rate and was not statistically significant. A percentage change in inflation will lead to 0.08 percent decrease in interest rate.The coefficient of determination (R2 = 0.78) of the estimated model ARDL(1,2,4,1) shows that about 78 percent of the systematic variation in interest rate(INT) is totally explained and well accounted for by the independent variables. This implies that the ARDL (1, 2, 4, 1) model is of goodness of fit and is quite adequate. Base on the findings the study recommends amongst others that monetary authority should pursue interest rate liberalization policies so as to enhance credit to private sector growth that would further engender economic growth and development in Nigeria.
Melita Charitou
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i1.14384

Abstract:
In this study we examine the determinants of the capital adequacy ratios of the US financial institutions over the period 2012-2017. Using a dataset of 2135 bank-year observations, results show that financial institutions with high operating expenses as a percentage of revenues have lower capital adequacy ratios. This is an indication that bank inefficiencies are an impediment to robust capital adequacy ratios. Moreover, results show that more profitable banks have higher CARs. Evidence shows that additional two risk related variables affect positively CARs, namely, earnings coverage of net charge off and loss allowance to loans. These results should be of great importance to bank executives, bank regulators and to major stakeholders such as investors and financial analysts, especially after the latest global financial crisis and the collapse of giant US financial institutions.
Madubuko Cyril Ubesie, Matthew Emeziem Ude
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i1.14693

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Bismark Addai, Annette Serwaa Agyeman, Adjei Gyamfi Gyimah
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i1.14177

Abstract:
Financial services are intangible and the only way to attract and retain customers is to seek out what they expect and design services to meet these expectations. This study was conducted to investigate customers’ evaluation of service quality in the Ghanaian banking industry using Cal Bank Limited as a case study institution and to recommend effective ways to improve the quality of service delivery. A convenience sampling technique was utilized in a 200 sample-size selection from Cal Bank customers in the Kumasi Metropolis, Ghana. Structured questionnaire adopted from the SERVQUAL instrument was used to gather primary data from customers and SPSS Statistics version 21 was employed as the main statistical tool. It is evident in this study that customers are dissatisfied with the overall level of service quality provided by the bank. However, customers are satisfied with empathy and assurance dimensions. The study further revealed that all the five dimensions of service quality significantly influence the service quality of the bank and the dimension with greatest impact is reliability, which has the highest coefficient. This means that the bank needs to pay much attention to reliability as a service quality component and improve upon the reliable services provided to customers whilst maintaining or improving the other dimensions.
Dang Ngoc Duc, Do Thi Ngoc Lan
International Finance and Banking, Volume 6; doi:10.5296/ifb.v6i1.14311

Abstract:
The focal point of this paper is focused on assessing the causal relationship between ODA and economic growth in the localities of Vietnam. This research uses panel data of ODA and GDP from 63 provinces of Vietnam by using Granger Causality test. The results showed that ODA has a causal effect on economic growth (GDP) and vice versa, economic growth decides to attract ODA in provinces in Vietnam. This result complements studies on the causal relationship between ODA and economic growth using new empirical evidence through case studies in the provinces of Vietnam.
Naveeda Akhter Katper, Vivake Anand, Adbul Subhan Kazi
International Finance and Banking, Volume 5; doi:10.5296/ifb.v5i2.14090

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