• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.349-360
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• 2020

The study aims to empirically examine the determinants of bank margins from Pakistan, an emerging South Asian economy. To elucidate the importance of the Pakistani banking sector, secondary data has been used, which was extracted from the annual accounts of twenty-four Pakistani scheduled commercial banks (20 conventional, four full-fledged Islamic) over a sample period of 2006 to 2017. The factors identified in the dealership model and the subsequent empirical developments in the dealership model categorized as bank-specific, diversification, regulatory, and industry concentration are analyzed by applying the most-common linear dynamic panel-data estimator, the Generalized Method of Moments (GMM) estimator, developed by Arellano and Bond (1991). The findings reveal that, among the bank-specific variables, funding cost, credit risk, managerial efficiency, market share, and operating cost are significant predictors of bank margins. For diversification variables employed in the study, both variables including net non-interest income and asset diversity are as well significant predictors of bank margins. It is also found that the market concentration variable proxied by the Herfindahl-Hirschman Index (HHI) is significantly predicting bank margins. Subsequently, one of the regulatory variables, the opportunity cost of holding reserves, and one bank-specific variable, the degree of risk aversion, are insignificant in the model.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.293-302
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• 2020

Capital mobilization is a traditional business of commercial banks and is one of the core foundations for the development of a bank. Capital mobilization is the main input in the operation of a bank, and this is also the basis for generating output for credit activities as well as other banking activities. This study aims to determine the main factors that affect the decisions of individual customers to put savings deposit in Vietnamese commercial banks. Survey data collected from 403 individual customers were analyzed to provide evidence. The results from the multiple regression analysis by using SPSS software revealed that all scales in this study were reliable, and there were six components impacting the savings deposit decision of individual customers from the strongest to the weakest in the following order: the form of promotion, bank brand, service quality, interest rate policy, and employee knowledge and attitude. Besides, the finding showed customers who have high income tend to have a stronger decision on savings deposits in commercial banks. The main findings of this article provide some empirical implications for marketers in banks and serve as a suggestion to improve these factors in order to retain and attract individual customers' savings deposit decisions.

• International Area Studies Review
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• v.12 no.2
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• pp.79-97
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• 2008

After entering into the WTO in October, 2001, China started opening her bank industry on a full scale and her financial markets from the end of 2006. It is true that the Chinese commercial banks should make efforts to enhance their operational efficiency for adapting the rapid change of financial environments. In this paper, the efficiency of 4 Chinese state-owned commercial banks and 11 share holding commercial banks has been estimated. Our Tobit model to find out the determinants of these banks' efficiency. The results are as follows: The efficiency of these banks kept being improved from 1999 to 2003. With regard to the relationship between the determinants and the bank efficiency, their capital ratios, ownership structures and government subsidies are significant at the 5% level while the return on asset(ROA) is significant at the 10% level. The relationship between the determinants and the efficiency has showed that the size, capital ratios, ROA and ownership structure showed significantly before the entry to WTO, on the other hand, after WTO their capital ratios are the only factor to determine their efficiencies.

• Journal of Arbitration Studies
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• v.19 no.3
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• pp.179-198
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• 2009

This paper aims at assessing reasonableness for restraining the independence principle in the operation of documentary credit in case of the illegality appeared in the underlying transactions. It has been a major rule under the independence principle to keep the credit operation free from the defences made by the issuing bank and/or credit applicant with a view to prevent the payment as specified under the credit. And also, it is generally accepted in the international commercial community to examine a presentation to determine, on the basis of the document alone, whether or not the documents appear on their face to constitute a complying presentation. Even though these two essences are major rules in the credit operation, if a presentation is made with the documents forged or materially fraudulent, the issuing bank can refuse to pay the documents in respect of fraud rule based on fraud exception for which a court of appropriate jurisdiction would enjoin such honour. Now we have newly come to another situation to determine whether or not we have to apply the same as fraud rule which is applicable to the illegality in the underlying contract under the new conception of illegality principle based on illegality exception. English Commercial Court handled the illegality case under the case of Mahonia Ltd., v. JP Morgan Chase Bank in 2003 and Justice Colman decided that issuing bank can rely on illegality affecting a letter of credit as an excuse for failure to pay. This judgement brought about the acceptance of illegality principle based on illegality exception as a defence to payment under a letter of credit as far as the illegality concerned in the underlying transactions. It is noticeable that this case will affect our international commercial community more to rely on the illegality in the underlying transactions as a good issue to stop payment for the issuing bank in the L/C operation.

• Asia-Pacific Journal of Business
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• v.6 no.2
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• pp.1-17
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• 2015

This study compares the most widely used parametric and non-parametric techniques to measure cost and profit efficiency of banks, namely the Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). We formulate the specification form of both stochastic cost and profit frontier models and constant return to scale Cost DEA and Profit DEA models and provide an empirical assessment of the cost and profit frontiers based on a panel dataset of National Commercial Banks (NCBs) and Private Banks (PBs) in Bangladesh over the 2001-2010 period. The cost inefficiency and profit efficiency are slightly higher for PBs than NCBs in case of both SFA and DEA. The coefficients of advance and off-balance sheet items are significant that positively influence the banks in stochastic cost frontier model while the advance, other earning assets, price of borrowed fund are significant and negative effects on the banks in stochastic profit frontier model. The average cost inefficiency and average profit efficiency are recorded with 16.3% and 91% respectively. The highest and lowest cost inefficiency are observed for Janata Bank and United Commercial Bank Limited whilst the highest and lowest profit efficiency are recorded for Eastern Bank Limited and Janata Bank respectively. The average technical and allocative efficiency are 68.8% and 35.9%, respectively in case of CRS cost-DEA model whereas they are 70.3% and 31.8% in case of CRS profit-DEA model. The average cost inefficiency is recorded 6.3% by SFA whereas it is 24.5% by DEA. The average profit efficiency is found 91% by SFA while it is 22.1% by DEA, and SFA method shows better bank efficiency than DEA.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.9
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• pp.201-210
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• 2021

A bank's competitive advantage helps in enhancing its ability to maintain a competitive advantage in product consumption, expand the consumption market, and effectively use business factors to maximize economic growth. The research aims to investigate the impact of organizational culture on the sustainable competitive advantage of commercial banks in Vietnam. The study adopts a quantitative research method, through structural equation modeling analysis (SEM). A survey was conducted on 608 participants who are staff at commercial banks in Vietnam. Research results show that organizational culture has both a direct and indirect impact on sustainable competitive advantage through factors of social responsibility and knowledge sharing. Based on these findings, the study gives some recommendations to contribute to the creation, maintenance, and development of sustainable competitive advantages of commercial banks. The findings of this study have shown the importance and impact of organizational culture on many aspects of a bank's sustainable competitive advantage. These are meaningful contributions in both theory and practice to help banks gain more insight into human resources management. The study also raises an issue on the need to care about and develop an organizational culture to bring professionalism, initiative, and fairness in all activities of commercial banks.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.39-46
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• 2020

Playing an important role in developing the economy and overall developments of the country, commercial banks have to be aware of their crucial presence in order to perform well and contribute significantly. At the same time, as a place to receive deposits, banks are required to be in safe situations to avoid bankruptcy or deal with financial crises. This research seeks to identify the determinants of Capital Adequacy Ratio and Banks' performance as well as the relationship between these two dependent variables. The paper uses 128 observations of 16 Vietnamese commercial banks during the period from 2010 to 2017, with two simultaneous dependent variables CAR and ROE, and independent variables including Return on Assets, Tobin Q, Credit growth, GDP growth, Equity to Deposits, Loans to Deposits, Bank size, Cost to Income, Liquidity risk, Provision for Loan loss ratio, Non-performing loans and Inflation. The results reveal that Capital Adequacy Ratio and Banks' Performance have statistically significant relationship and Credit growth, GDP growth, Equity-to-Deposit ratio and Cost-to-Income ratio all have significant effects on two dependent variables. The findings of this study suggest that commercial banks should control the respective elements in order to maintain adequate level of capital and also create effective performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.779-788
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• 2020

Commercial banks play an important role as the main source of funding in the transition process of Vietnam as a market economy. As a result, enhancing the efficiency and productivity of Vietnamese banks can decrease the lending cost for individuals and enterprises. This study is to measure and analyze the productivity change of Vietnamese banking system in different ownership cohorts and sources of this change during the period of restructuring (2011-2019). The Hicks-Moorsteen total factor productivity index is utilised to measure the productivity change and to identify the sources of this change. For an empirical analysis, the data of 28 Vietnamese commercial banks from 2011 to 2018 is collected from their financial statements including balance sheets and income statements. The results show an increase of Vietnamese bank productivity due to the technological progress. While foreign and joint-venture banks are the most advanced cohort, state-owned banks have the lowest rate of productivity growth. The restructuring program negatively impacts scale efficiency and this measure attributes to a decline in the overall efficiency of the banks. We also found that state-owned commercial banks are the most efficient group in the sense that they can achieve the maximal level of revenue from a given amount of expense.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.249-261
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• 2021

To tranquilize the devastating impact of unnecessary risk-taking behavior of banks towards the economy for maximizing their profits that usually arises due to widely known 'moral-hazard' problem originating from market competition and intensified by bank's limited liability, the banking system is strongly monitored across all countries of the world. The goal of controlling would become more feasible if there exist some self-discipline and motivations which could safeguard the banks' charter value through the mechanism of market discipline. Therefore, our study is aimed to scrutinize the relation between market discipline and charter value of local commercial banks that are registered on the Pakistan Stock Exchange by analyzing a balanced panel data from the year 2007 to 2019. Deposit growth, interbank deposits, and subordinate debt are taken as proxies to measure market discipline whereas Tobin's Q theory is applied for calculating the charter value. Generalized Least Square Regression with Fixed Effect Model is used for evaluation. The outcomes reveal that in the existence of control variables, all proxies of market discipline have a significant positive impact on bank charter value. Our research has important policy implications for monitoring and supervising financial intermediaries for their stability and soundness by offsetting the complications of moral-hazard in the financial systems.

• Applied Chemistry for Engineering
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• v.10 no.8
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• pp.1147-1154
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• 1999

We developed three-wavelength solar bank which is a very important part of the solar simulator with the commercial mercury lamps and projected halogen lamps. This was developed to satisfy simultaneously following three points: the ${\pm}10%$ uniformity of irradiance of the target area and irradiance in the each wave region and $1120W/m^2$ maximum irradiance of the solar in the summer. We used spectral radiance to determine the standard of the spectral irradiance and developed the perfect three-wavelength solar bank,considering of directionality, irradiance distance, interval both lamps, lamps combination and lamp numbers based on the measured spectral irradiance. To proof the capability of the three wavelength solar bank, We carefully analyzed color differences and heat transfer. As a result, we found that three wavelength solar bank was much better than commercial infrared lamp bank in terms of the color differences, heat transfer phenomena.