• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.699-707
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• 2021

The objective of this study is to examine the determinants of the liquidity of 17 commercial banks listed on the Vietnamese Stock Exchanges, HOSE, HNX and UPCoM. The study uses the quarterly audited financial statements from the first quarter of 2006 to first quarter of 2020; it includes 496 observations. Data on GDP and inflation are compiled from the International Monetary Fund and the General Statistics Office of Vietnam. Once collected, the data were organized along the line of unbalanced panel data. The results show that total asset size, return on total assets, and credit growth are positively associated with the liquidity of the listed banks; whereas the interaction between the bank size and the return on total assets has a negative impact on the liquidity of commercial banks listed on the HNX, HOSE, UPCoM. In order to maintain good liquidity, commercial banks need to focus on effective credit growth, ensure a high rate of profit over total assets, and at the same time focus on developing the scale of total assets. However, the development of the size of the total assets should be noted in the balance between the total assets and the rate of return on the total assets.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.305-311
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• 2022

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is projected to provide several chances for Vietnam's banking industry to expand into the international market. This study examines the influence of foreign ownership on credit risk in Vietnamese commercial banks before the context of participation in the CPTPP. Using a sample of 28 commercial banks between 2009 and 2020, we find that foreign ownership has a negative relationship with bank credit risk. The regression methods used include the least-squares method, fixed-effects model, random effects model, and general least squares method. The research model adds interactive variables, which will help to reflect the role of intermediary factors more accurately such as listing on the stock market, capital ratio to the relationship between foreign ownership and bank credit risk. The test results reveal that increasing the foreign ownership ratio has a bigger impact on reducing credit risk for listed banks and banks with low capital than for other commercial banks. The government should flexibly adjust the foreign ownership ratio according to the capital size and role of each bank so that it can make good use of investment capital from abroad when Vietnam joins the CPTPP.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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• pp.133-143
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• 2020

The paper investigates the factors affecting the profitability of commercial banks in Asian developing countries, including Vietnam, Malaysia and Thailand. We use panel data of four entities; ten banks in Vietnam, eight banks in Malaysia, nine banks in Thailand and all 27 commercial banks from the period 2012 to 2016. Particularly, Return on Asset, Return on Equity and TOBINQ are defined as profitability indicators, which are impacted by three main types of independent variables, namely bank-specifics, which include CAR, NPL, Cost to income, Liquidity ratio and Bank size, industry-specific variable-concentration HHI and macroeconomic-specific variables, which consist of GDP growth and Inflation. Using panel data regressions, the paper identifies several similarities and differences among empirical results on the models of four entities, each of three countries and the overall sample. The most outstanding similarity is that all entities record the significantly negative relationship between operational risk and banking profitability. Likewise, the significantly negative influence of bank size to profitability is found on models of Vietnam and Thailand and no significant effect on the model of Malaysia. Meanwhile, the most controversial result comes up with the negative relationship between CAR and profitability indicators as well as the positive association between credit risk and banking profitability.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.709-716
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• 2021

The main objective of this research is to find out the effect of Non-Performing Loan (NPL) of Nepalese conventional banks. The population of this study is major commercial banks in Nepal and the data obtained for this study was from the period 2015-2019. This research used secondary data and it is collected from each bank's annual report and GDP and Inflation taken from the World Bank database. The method used for data analysis in this study is multiple regression analysis. The study used NPL as a dependent variable and Return on Asset (ROA), Capital Adequacy Ratio (CAR), Bank Size, GDP growth, and Inflation as independent/explanatory variables. The result of this research shows that ROA, Bank Size, GDP, and Inflation have a significant effect on NPL but CAR does not have a significant effect on the NPL of banks. In other words, the GDP effect on NPL in this study shows a positive and significant effect while most studies show a negative effect. It demonstrates that when GDP growth increases, there is a significant increase in the growth of Nepalese banks even though there were no significant changes in income growth. Therefore, GDP growth has a positive and significant effect on the NPL of commercial banks. Thus, the bankers and policymakers need to consider GDP growth carefully while taking NPL-related decisions.

• The Journal of the Convergence on Culture Technology
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• v.7 no.1
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• pp.511-517
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• 2021

In this paper, we analyzed the impact of capital adequacy requirements on the profitability of Korean banks using DOLS model. As a result of the analysis, the impact of BIS capital ratios on commercial and regional banks was different. Demand for capital adequacy has a greater and more significant negative impact on regional banks than on commercial banks. It was shown that bank characteristic variables rather than macroeconomic variables have a more significant effect on bank profitability. In addition, a rise in the BIS capital ratio reduces the profitability of commercial and regional banks, and the higher the ratio of loan-loss provisions, the stronger the relationship. In the case of commercial banks, it is estimated that the demand for capital adequacy did not have a significant impact as they are relatively large and faithful in capital compared to regional banks. However, in the case of regional banks, safer assets need to be selected to meet the BIS capital ratio, and the increasing propotion of these safe assets seems to have a relatively greater negative impact on profitability. Consequency, the financial authorities should consider this results and implement the bank's capital regulation policy.

• Korean Journal of Artificial Intelligence
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• v.7 no.1
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• pp.13-16
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• 2019

While the Chinese banks have started the impact of foreign banks. At the same time, rising pressure on foreign exchange reserves and appreciation of the renminbi has prompted Chinese banks to go abroad and diversify their risks. The financial crisis of 2008 has caused the continued turbulence of the major financial markets around the world, and the valuation of foreign financial institutions has been drastically shrinking, providing opportunities for Chinese banks to carry out overseas M&A. Based on the overseas M&A status of Chinese commercial banks, this paper sums up the characteristics of the overseas M&A. Then taking a series of overseas M&A conducted by ICBC from 2006 to 2011 as an example, it analyzes the relationship between M&A and performance growth using grey incidence model. The test shows: there is a positive correlation between both overseas M&A and interest rate differential with performance growth of ICBC, and overseas M&A transactions role in promoting the performance growth is significantly higher than the interest rate differential.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.257-263
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• 2022

The objective of this study was to see how artificial intelligence applications affected organizational innovation in Jordanian commercial banks. Both independent and dependent variables were measured in three dimensions: expert systems, neural network systems, and fuzzy logic systems for artificial intelligence applications variable. Product innovation, process innovation, and management innovation for the organizational innovation variable. To achieve study objectives, a questionnaire was developed and distributed to a sample of one hundred fifty-three managers in Jordanian commercial banks, who were selected according to the simple random sampling method. Except for the neural network systems dimension, which comes in at an average level, the study indicated that there is a high level of organizational innovation and artificial intelligence applications. Furthermore, the findings revealed that artificial intelligence applications have a significant impact on organizational innovation in Jordanian commercial banks, with the most important artificial intelligence application being a fuzzy logic system. The study suggested keeping track of technological advancements in the field of artificial intelligence applications and incorporating them into banking operations by benchmarking with the best commercial bank practices and allocating a portion of the budget to technological applications and infrastructure development, as well as balancing between technology use and information security risks to ensure client privacy is protected.

• International Area Studies Review
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• v.16 no.3
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• pp.99-118
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• 2012

This study have done comparative analysis of Korean banks' restructure and Chinese banks' reformation, especially derives main factors that influence existence and improvement of competitiveness of Korean banks. The study measured effectiveness of 15 Chinese banks and 13 Korean banks, and conducted empirical analysis of what are the factors affect the efficiency of banks. The result and implication are as follow. First, Korean commercial banks' efficiency is higher than banks in China, but Chinese commercial banks are getting better every year. Second, as the factors affect efficiency of the banks, it shows that the scale of bank, asset reliabilities, ownership structure and financial performance are significant. Third, about the factors affect efficiency, the ownership structure, financial intermediation ratio, and the health of the assets are significant in Chinese banks. Fourth, about the factors affect efficiency, the financial performance and asset reliability are significant in Korean banks. Based on the results, we have identified current problems of Chinese and Korean banks, and also pointed out Korean banks and Government how to improve competitiveness of Bank industry.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.893-904
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• 2020

The study examines the relationship between credit risk and operational risk (understanding of risk management, risk identification, risk assessment and control, and risk monitoring) on risk management practices followed by private and public sector commercial banks. The cross-sectional data method was used to check the impact of risk management practices. Data was collected from the bank employees and a total of 284 respondents were finally selected for further analysis. Measurement Invariance of Composite Models analysis is used to test the quality of the measurement model for sub-samples, and multi-group analysis is used for path analysis in sub-sample through PLS-SEM. The findings of the study as the total sample show that both types of banks are managing adequate and significant risk management practices. On the other hand, sub-groups' results show private sector banks are more momentous than public sector banks. Risk identification is significantly different at the sub-group level, which shows public sector banks are more concentrating on this type of risk. Understanding of risk management has no significant effect on both types of banks and risk assessment & control for public sector banks, and there is a difference in the risk management practices among private and public sector commercial banks.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.223-234
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• 2021

This study aims to examine whether operating cash flows influence banks' financial stability in Pakistan. The study employed annual panel data collected from annual reports of 20 commercial banks listed on the Pakistan Stock Exchange for the year 2011 to 2019. Free cash flow yield was taken as the dependent variable while cash flow ratio was selected as the independent variable, and net interest margin, income diversification, asset quality, financial leverage, the cost to income ratio, advance net of provisions to total assets ratio, capital ratio, financial performance, breakup value per share and bank size were taken as control variables. The study performed ordinary least square technique, random and fixed effects models, Hausman test, Lagrange multiplier test, descriptive and correlation analysis. Results showed that operating cash flows and net interest margin significantly and positively influenced banks' financial stability while the cost to income ratio and advances net of provisions to total assets ratio significantly and negatively associated with banks' financial stability. To improve financial stability, banks should become more cost-effective and enhance their liquidity levels by lowering lending activities. In the future, it would be useful to compare commercial and investment banks, also Islamic and conventional banks in the same research setting.