• 제목/요약/키워드: Conventional Banks

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Lifestyle Segmentation: The Comparison of Islamic and Conventional Banking Customers in Indonesia

  • Sutarso, Yudi;Rustiana, Elly;Hanum, Rizky Amalia;Gunawan, Wibiksono K
    • 유통과학연구
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    • 제10권8호
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    • pp.25-34
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    • 2012
  • Understanding customer' lifestyles important for banks because it will guide in determining marketing policies, such as services, pricing, service delivery and promotion decisions. From the customer' lifestyle, banks will know what kind of customers' attitudes, interests and opinions, so they also will understand what the costumer' needs and what services needed by them. For Islamic banks, customers understanding are important because, nowadays, the competition of the banks is not only with other Islamic banks but also with the well-established conventional banks offering Islamic products or services The aims of this research paper are to describe what factors underline the customer's lifestyle of both Islamic and conventional bank, to segment the bank customers based on their lifestyles and investigate the profile of each segments, to compare the characteristics of the segments, and to identify marketing policies based on the characteristics. The population of the study is banking customers in Indonesia, in which the researchers have used judgment sampling as sample selection. There were 186 customers of Islamic banks and 244 customers of conventional bank as respondents in this study. Statistical methods employed were exploratory factor analysis and cluster analysis. The finding of the study shows that there are twelve factor underlining the customers' lifestyle, namely: factor of fashion conscious, internet usage, sports spectator, financial and technology optimism, price sensitivity, independent, compulsive housekeeper, new brand tryer community activities, opinion leader, credit usage, and homebody. In addition, for Islamic banking, there are two market segments, namely fashionable-independent and innovative-social segment. Based on the lifestyle characteristics, the first segment has higher level in factor of fashion conscious, homebody, independent, optimism and price conscious, which is therefore called fashionable-independent segment. On the other hand, the second cluster has higher level in factor of new brand tryer, community minded, sport spectator, credit user, internet usage, opinion leader, and compulsive housekeeper, which is therefore called the innovative-social segment. Furthermore, for conventional banking, there are also two segments, namely persuasive-optimistic and sensitive-independent segment. The first segment has higher level on some factors, namely: opinion leader, optimism, internet usage rate, credit usage level, sport spectator, and new brand tryer. On the other hand, the second cluster is characterized by higher level in factor of price conscious, confidence, community minded, homebody, fashion conscious, and compulsive housekeeper. Managerial implications for the management of Islamic banks could be identified in this study as follows. Firstly, the twelve lifestyle factors of this study could be an alternative view in observe Islamic banking customers. The domination of both the fashionable conscious and the internet usage factor show that the aspects are quite instrumental in perceiving the customer' lifestyles, in which reflects the importance of these two aspects to customers. Secondly, in serving their customers, Islamic banks need to understand the customer lifestyle, in which the lifestyle segments found in this study provide a guide of how their needs were reflected. Finally, by understanding the segments and the characteristics each segment of the conventional banks, Islamic banks could adjust their marketing strategies differently from the conventional banks.

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Customer Communication Strategy for Islamic Banks

  • Usman, Hardius
    • 산경연구논집
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    • 제6권2호
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    • pp.17-24
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    • 2015
  • Purpose - The main goals of this study are (1) to study the information sources used the most by customers of Islamic banks; and (2) to compare this with conventional bank customers. Research design, data, and methodology - 125 Islamic bank customers and 125 conventional bank customers were surveyed. The study employed two independent sample tests. Additionally, an exploratory study was conducted to support the quantitative analysis. Result - The results show that Islamic bank customers use personal as well as marketing information sources more intensely than conventional bank customers, although the result differences were not significant. Specifically, customers of Islamic banks use certain personal resources (parents and friends) and marketing information (marketers)intensely than conventional bank customers. Conclusion - The study revealed that friends and parents are the most important information sources for the selection of the Islamic bank. In addition, based on the resources used, Islamic banking customers can be classified as traditional and religious communities. Therefore, the most effective customer communications will be through Islamic groups such as Islamic social institutions and Islamic educational institutions.

Effect of Ownership Structure on Bank Diversification and Risk-Taking Behavior in Bangladesh

  • MOUDUD-UL-HUQ, Syed;BISWAS, Tanmay;CHAKRABORTY, Brishti;AMIN, Md. Al
    • The Journal of Asian Finance, Economics and Business
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    • 제7권11호
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    • pp.647-656
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    • 2020
  • This study empirically examines the effect of ownership structure on bank diversification and risk-taking behavior. The population of this study is based on all commercial banks listed in Bangladesh. Thirty-two conventional commercial banks were randomly selected from thirty-three conventional banks for this study. Data was collected from the annual reports of the concerned banks from 2000 to 2017. To analyze the data, we had applied the two-stage least squares (2SLS) estimator. The results of the analysis show that ownership structure i.e. managerial ownership, institutional ownership, general public ownership, and ownership concentration have a significant negative impact on bank diversification. On the other hand, institutional ownership, managerial ownership, and general public ownership have a significant positive impact on Z-score, and ownership concentration has an insignificant but positive impact on the Z-score of banks in Bangladesh. Therefore, the study opposes the benefits of diversification and promotes ownership structure which is capable of ensuring better financial stability by reducing the probability of risk. The policy-makers especially, Bangladesh banks should evaluate the fact of this study to issue guidelines on corporate governance, bank diversification, and risk-taking behavior of commercial banks.

Customers Trust on Islamic Banks in Indonesia

  • Usman, Hardius
    • The Journal of Asian Finance, Economics and Business
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    • 제2권1호
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    • pp.5-13
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    • 2015
  • This paper aims to provide an overview of customer trust toward Islamic banks, and to study the effect of trust on the selection of Islamic banks services. A total 375 questionnaires were distributed to the three groups of bank customers, i.e. Islamic banks customers, conventional banks customers, and customers of both banks (125 respondents in each group). Trust is measured based on three constructs, namely Ability, Integrity, and Benevolence. To test the hypothesis this study employs Analysis of Variance and Tukey Test. The results show that bank customers have degree of trust towards Islamic banks relatively high enough, although among the respondents had never become customers of Islamic banks. Benevolence as the dimension with the lowest average score revealed the Islamic banks are more believed as a competent and honest bank in carrying out the business than the bank that will work for the benefit of customers. Other findings suggest that degree of trust have significant affects on the decision for using the Islamic banks services. The positive values that embedded in the concepts and systems of the Islamic is the key to improving the competitiveness of Islamic banks.

Capital Buffer and Determinant Factors of Conventional Banks in Indonesia

  • ANISA, Anisa;SUTRISNO, Sutrisno
    • The Journal of Asian Finance, Economics and Business
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    • 제7권12호
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    • pp.377-384
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    • 2020
  • Banking is very regulated by the government and even has to follow regulations issued by the Basel Committee on Banking Supervision, which regulates banking in the world. According to Basel III, banks must provide capital reserves called capital buffers. The purpose of this study is to examine the factors that determine capital buffer. Factors thought to affect the capital buffer studied consisted of profitability (ROA), credit risk (NPL), liquidity risk (LDR), capital adequacy in the previous period (CARt-1), management risk (NIM), and ratio of operating risk (OER). The population in this study is conventional banks listed on the Indonesia Stock Exchange, as many as 42 banks, with a sample of 40 banks taken by purposive sampling method with an observation period of four years with quarterly data (2016-2019). To test the hypotheses, regression panel data is used. After being tested, it turns out that the fixed effect model is better than the common effect and random effect. The results of the study with fixed effect models show that ROA, NPL, and OER significantly and negatively affect capital buffer. CARt-1 has a positive and significant effect on capital buffer, while LDR and NIM do not affect capital buffer.

직교 쌍 필터 뱅크 기반 다중 반송파 CDMA 시스템의 성능분석 (Performance analysis of multi-carrier CDMA system using an orthogonal pair of quadrature filter banks)

  • 이재철
    • 한국통신학회논문지
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    • 제25권9B호
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    • pp.1570-1578
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    • 2000
  • 본 논문은 채널간의 간섭을 줄이는 관점에서 코사인 변조 필터 뱅크와 사인 변조 필터 뱅크로 이루어진 필터뱅크의 쌍을 다중 반송파 부호 분할 다원 접속(multi-carrier code division multiple access: MC-CDMA) 시스템의 다중화 전송에 적용하였다. 웨이브렛 특성을 필터 뱅크의 구현에 활용하는 제안된 기법은 이산 퓨리에 변환(discrete Fourier transform: DFT)에 기반을 둔 기존의 MC-CDMA 시스템과 비교하였을 때, 전송 채널의 부채널화의 우수성으로 인해 채널간의 간섭을 감소시킬 수 있다. 제안된 직교 쌍 필터 뱅크를 기반으로 하는 MC-CDMA 시스템의 성능을 평가하기 위하여, 레이라이 페이딩 채널과 가우시안 잡음 채널에서 역 방향 링크의 신호 대 잡음비에 대한 비트 오율을 계산한다. 성능평가 결과는 제안한 시스템이 간섭의 영향을 최소화하는 측면에서 기존의 MC-CDMA 시스템 보다 우수한 성능을 보이고 있다.

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다목적 유전자 알고리즘을 이용한 SVC와 외부 리액터/커패시터 뱅크의 헙조 제어 (Coordination of SVC and External Reactor/Capacitor Banks Using Multi-objective)

  • 박종영;이상호;박종근;손광명;이송근
    • 대한전기학회:학술대회논문집
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    • 대한전기학회 2000년도 하계학술대회 논문집 A
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    • pp.233-235
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    • 2000
  • SVC(Static Var Compensator) is commonly installed with conventional mechanically switched existing reactor or capacitor banks for wide range voltage control. The frequencies of switching of external banks have a great impact on the quality of voltage, but is limited since the life time of the external banks depends severely on the number of switching. So it is a complete multi-objective nonlinear optimization problem with conflicting objectives. This paper presents a method to determine the optimal coordination of SVC and external banks using genetic algorithm based on the multi-objective criteria. Optimal dead band and delay time of external banks is sought for reliable and efficient operation

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The Impact of Operating Cash Flows on Financial Stability of Commercial Banks: Evidence from Pakistan

  • ELAHI, Mustahsan;AHMAD, Habib;SHAMAS UL HAQ, Muhammad;SALEEM, Ali
    • The Journal of Asian Finance, Economics and Business
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    • 제8권11호
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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.

Modified CIC 필터를 이용한 필터 뱅크 구현 (Filter Banks Implementation Using Modified CIC Filters)

  • 서희정;장영범
    • 대한전자공학회:학술대회논문집
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    • 대한전자공학회 2001년도 하계종합학술대회 논문집(4)
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    • pp.147-150
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    • 2001
  • In this paper, a low-power CIC(U Integrator Comb) filter bank structure is proposed for wireless communication systems. Since conventional CIC filter can not meet the desired center frequencies in each channel of filter banks, we developed a Modified CIC Filter(MCF) for those purpose.

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The Effect of Non-Performing Loan on Profitability: Empirical Evidence from Nepalese Commercial Banks

  • SINGH, Sanju Kumar;BASUKI, Basuki;SETIAWAN, Rahmat
    • The Journal of Asian Finance, Economics and Business
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    • 제8권4호
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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.