• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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• pp.267-273
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• 2020

The research examines the impacts of empowering leadership on teamwork performance of the employees in sales departments at commercial banks in Vietnam. Based on the data from the sample survey of 406 employees in sales departments of commercial banks in Vietnam, the paper uses various types of statistical methods and assesses the reliability of scales with Cronbach's Alpha, Confirmatory Factor Analysis as well as Structural Equation Modeling for analysis. The results show that the Empowering Leadership factor has a directly positive impact on Knowledge Sharing and Teamwork Performance, which means when the Empowering Leadership is positive, the Knowledge Sharing and Teamwork Performance will increase. In addition, Empowering Leadership also has an indirect impact on Teamwork Performance through Knowledge Sharing factor, which means when the Empowering Leadership is positive, the Teamwork Performance will increase. Moreover, Knowledge Sharing factor has a directly positive impact on Teamwork Performance, which means when the Knowledge Sharing factor is positive, the Teamwork Performance will increase. The findings suggest that Empowering Leadership has both directly and indirectly positive influence on Teamwork Performance. Moreover, Empowering leadership has a directly positive impact on Knowledge-sharing while Knowledge-sharing has a directly positive impact on Teamwork Performance of sales departments of commercial banks in Vietnam.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.75-84
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• 2020

The study investigates and measures the impact of financial restructuring on overall financial performance of commercial banks in Vietnam. Survey data for this research were collected from audited financial reports of 28 commercial banks in Vietnam, for the period from 2008 to 2018. In the study, we have built a model of econometric regression with the dependent variable being financial results measured through ROA and ROE. The research methods used include Pooled Ordinary Least Square Model (POLS), Fixed Effects Model (FEM), Random Effects Model (REM), and different Generalized Method of Moments (GMM). The results showed that the account payables restructuring and owners' equity restructuring are much needed. Increasing the owners' equity, decreasing the account payables would improve the overall financial performance, bad debts restructuring to decrease bad debts would also improve the financial performance as well. However, the financial restructuring in the period 2012-2015 and 2016-2018, indeed worsen the financial performance during those times. The findings of this study suggest that the evaluation of the financial performance after restructuring of commercial banks in Vietnam must be based on longer data. At the same time, it is necessary to examine differences between various banking groups to draw accurate conclusions on financial performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.327-339
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• 2021

This study examines the impact of bank restructuring on the financial performance of commercial banks in Vietnam. The data for this study was obtained from the audited financial statements of 30 Vietnamese commercial banks from 2007 to 2019. Multiple regression analysis was used for investigation. Financial performance, as evaluated by ROAA, ROEA, and NIM, is the dependent variable. Financial restructuring, ownership restructuring, and operational restructuring are the independent variables. Pooled least squares (Pooled OLS), fixed effects model (FEM), random effects model (REM), and system generalized moment regression model (System GMM) are the estimate methods used to increase the accuracy of the regression coefficient. The research results show that the variables of financial restructuring activities such as government intervention and the ratio of equity to total assets; variables of ownership restructuring such as capital adequacy ratio, privatization of state-owned commercial banks, mergers, and acquisitions; variables of operational restructuring such as employees, branches, the cost to total assets; GDP variables and the second restructuring period have a positive impact on financial performance. Variables such as debt-to-capital ratio, bad debt ratio, state ownership ratio, expense-income ratio, and inflation have a negative effect on financial performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.477-489
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• 2021

The purpose of this study is to examine the effects of credit risk on commercial banks' profitability in Afghanistan. Due to the availability of limited data, this study applies the Fixed Effects estimator on balance panel data of six domestic private commercial banks over the period 2014-2018. The study uses LLRTL, TLTA, and TLTD as credit risk indictors, size as bank-specific determinant, ROAA, ROAE, and NIM as profitability indicators. The study finds a robust negative and significant effect of LLRTL on ROAA, and ROAE, but positive and insignificant on NIM. The results also reveal significant positive effect of TLTA on NIM, however insignificant negative on ROAA while insignificant positive on ROAE. The study finds negative effect of TLTD on ROAA, ROAE, and NIM, but only significant on NIM. Further, this study reveals a robust negative and significant effect of size on all profitability indicators. The mean comparison of profitability demonstrates that NIM is in a better situation than others profitability indicators, which is a good sign for the Afghan banking sector. The findings of this study suggest that improving credit management, increasing efficiency of asset management or effectiveness of business model can increase commercial banks' profitability in Afghanistan.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.43-51
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• 2022

This paper examines the main factors affecting the bank performance under the Basel II implementation in Vietnam, a transitional economy in Asia. We pay special attention to the implementation duration of the Basel II convention and how it affects profitability. Thereby, we can evaluate the effectiveness of Basel II in the whole system according to the roadmap to 2020. We employ the panel data regression method to analyze a sample of 300 bank-year observations from 25 commercial banks during the 2008-2019 period. Our empirical findings show that the size of the bank, net interest margin, state ownership, and Basel II convention have positive effects on bank profitability. However, our empirical findings indicate that bank age and branch number negatively reduce bank performance. Finally, our results indicate that commercial banks earn extra profit from delaying the implementation of Basel II. However, commercial banks will encounter higher credit, and operational risks arising from delaying the implementation of Basel II standards. Therefore, our study contributes to the insights into the bank's management to enhance profitability, especially after implementing Basel II in a transitional economy. Finally, our study also provides policy implications for bank managers and banking supervisory to maintain the sustainable development of the banking system.

• Atmosphere
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• v.34 no.2
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• pp.107-121
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• 2024

In this study, we empirically analyzed the impact of physical risks due to climate change on the soundness and operational performance of the financial industry by combining economics and climatology. Particularly, unlike previous studies, we employed the Seasonal-Trend decomposition using LOESS (STL) method to extract trends of climate-related risk variables and economic-financial variables, conducting a two-stage empirical analysis. In the first stage estimation, we found that the delinquency rate and the Bank for International Settlement (BIS) ratio of commercial banks have significant negative effects on the damage caused by natural disasters, frequency of heavy rainfall, average temperature, and number of typhoons. On the other hand, for insurance companies, the damage from natural disasters, frequency of heavy rainfall, frequency of heavy snowfall, and annual average temperature have significant negative effects on return on assets (ROA) and the risk-based capital ratio (RBC). In the second stage estimation, based on the first stage results, we predicted the soundness and operational performance indicators of commercial banks and insurance companies until 2035. According to the forecast results, the delinquency rate of commercial banks is expected to increase steadily until 2035 under assumption that recent years' trend continues until 2035. It indicates that banks' managerial risk can be seriously worsened from climate change. Also the BIS ratio is expected to decrease which also indicates weakening safety buffer against climate risks over time. Additionally, the ROA of insurance companies is expected to decrease, followed by an increase in the RBC, and then a subsequent decrease.

• Journal of Digital Policy
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• v.1 no.2
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• pp.17-24
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• 2022

In China, the continuous promotion and coverage of scanning code payment has caused an imbalance in the coin market. Coin changers can not only alleviate this problem, but also affect the business development of commercial banks. Therefore, it is meaningful to study the coin changer. The purpose of this paper is to study the impact of coin changers on the business of commercial banks in China. Through on-the-spot visits and based on the manually collected customer data of Chinese commercial banks as the object, combined with the calculation method of financial indicators to conduct case analysis. The results of the study show that the coin changer has a positive impact on the business development of Chinese commercial banks. This paper provides feasible suggestions and new ideas for business development to Chinese commercial banks. At present, there are few related studies on coin exchange machines. This study combines the calculation of financial indicators to verify the policy results, which is the innovation of this study.

• Journal of Korea Society of Industrial Information Systems
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• v.17 no.2
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• pp.81-94
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• 2012

On December 11, 2001, China joined the WTO and became one of the member countries and the Chinese financial markets had to be open in 5 years. So, the Chinese government transformed national commercial banks into joint-stock banks. The purpose of this paper is to investigate the validity of this decision by the Chinese government. In order to measure the efficiency of banks, the directional distance function (DDF) methodology is used, which analyzes whether a bad output exists in the outputs. In the empirical analysis, the number of staffs, the fixed assets, and the equity capital are used as inputs, while the loans and the non-performing loans ratio are used as a good output and a bad output, respectively. The non-performing loans ratio is included in output since it could affect the efficiency of banks. If it isn't considered in the analysis, a distortion might occur in analyzing the efficiency of banks. The results show that the efficiency of the major commercial banks was improved, and that the efficiency of joint-stocks banks was higher for 2002-2003 while the efficiency of national commercial banks was higher for 2004-2006. It was due mainly to the foreign exchanges reserve funds injected into national commercial banks by the Chinese Ministry of Finance, and as a result bad assets were eliminated.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.3
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• pp.19-26
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• 2017

Banks play a crucial role in bringing stability and economic development through their expected contribution in proper financial resource mobilisation across the economy. Despite the importance, there is little focus in recent literature which provided the empirical evidence how the global financial crisis affect the bank efficiency in Bangladesh. Thus, this paper aims to examine the effect of the global financial crisis and other factors on the efficiency of Bangladesh commercial banks. By employing the Data Envelopment Analysis (DEA) method, we computed the technical efficiency of individual banks operating in the Bangladesh banking sector during 2000 to 2013. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest efficiency level during 2001, while efficiency seems to be at the lowest level during 2010. The study finds that crisis along with bank size, capital adequacy ratio, return on average equity and real interest rate have a significant effect on bank efficiency in Bangladesh. In order to keep the sound financial development of Bangladesh, banks operating in the Bangladesh banking sector have to consider all the potential technologies which could improve their profit efficiency levels, since the main motive of banks is to maximise shareholders' value or wealth through profit maximisation.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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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.