Banking Industry Research Papers - Academia.edu (original) (raw)

Previous empirical studies confirm that intellectual capital has a significant and substantive impact on performance. The purpose of this research is to examine the inter-relationships and interactions among intellectual capital components and business performance in the Portuguese banking industry. The concept of relational capital was extended to include 'stakeholder orientation' items. Model development and hypothesis testing was conducted using PLS on a sample of 253 respondents from 53 organisations. Results show a confirmation of previous studies as it relates to hypothesis testing but a difference in psychometric item evaluation given the unique geographical and sectoral context. Recommendations are then made for researchers and practitioners.

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- Marketing, European Studies, Human Resource Management, Technology Management

The present paper presents the methodology and the main results of a quantitative study applied on a sample of 1010 respondents, in the Romanian banking industry. The aim of the study was to research the customer level of loyalty toward Romanian organizations acting in the retail banking sector. According to similar researches in the field, loyalty is a complex construction, which comprises both psychological and behavioural components, fact also proved by the results of the present research. As the survey results show, Romanian customers remain in relationships with banks due to the existence of both favourable attitudes or positive motivations (representing 46,36% of the total retention motivations) and constraint factors or inertia (representing 52,44% of the total retention motivations). At the same time, the results prove that the level of loyalty stated by customers is supported not only by the level of satisfaction, but also by factors like: bank's attitude towards its own customers, the level of customer trust toward the organization or its employees in ensuring the financial interests of clients, and also by the level of customer commitment. Customer switching behaviour is determined in 58% of cases by the high level of dissatisfaction toward the banks' policy of price.

- by Alina Filip
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- Relationship Marketing, Customer Loyalty, Retail Banking, Banking Industry
- by Idrees Khawaja
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- Panel Data, Monetary Policy, Banking Industry, Central Bank

While spillovers are a crucial factor in determining the optimal environment for innovation, there is no consensus regarding their impact on firm behavior. One reason for this may be that models differ in their assumptions for the functional form of the spillover pool. In industrial organization and economic geography, for example, the predominant convention is that all innovation within an industry/region contributes to a spillover pool that has a common value for all firms. An alternative convention prevalent in endogenous growth and evolutionary economics is that spillovers have directionality-the size of the relevant pool differs across firms.

Consensus building plays an important role in strategy formulation and implementation. Previous researchers have attempted to find a link between goal consensus among top management and organizational performance, mainly in manufacturing settings, with varying results. Few extant studies have examined goal consensus at the functional level. Aims to expand our knowledge of the goal consensus/performance relationship by focusing on the relationship between operations and marketing in the service setting. Attempts to identify the types of co-ordination mechanisms that help achieve functional goal consensus between operations and marketing. Finds a positive relationship between goal consensus of the marketing and operations managers and performance based on return on equity and return on assets. Concludes that consensus is correlated with the use of process and programming co-ordination mechanisms and not correlated with the use of interpersonal co-ordination mechanisms.

- by Winter Nie
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- Marketing, Operations Management, Performance, Business and Management

Business intelligence (BI) is a managerial concept which helps managers in the organizations to manage information and make factual decisions. Some have introduced Business Intelligence as a process of turning data into information and then into knowledge. This concept has become a popular trend for businesses interested in adding value to their decision making processes.(Golfarelli et al., 2004) In addition measurement of Business Intelligence readiness/maturity is considered a critical issue. Business intelligence like software development is a process, which expressed in terms of components such as artifacts and workflows. In software engineering, the Capability Maturity Model Integrated (CMMI) developed to define different levels of software process maturity. We draw upon the concepts underlying CMMI to define different maturity levels for a business intelligence process. The study examines the maturity level of Business Intelligence activities as well as the future outlook concerning Business Intelligence in the Iranian banks. The research will also examine key areas of improvement in Business Intelligence operations, benefits gained from Business Intelligence as well as the strength point of Iranian banking industry in using Business Intelligence. Further, a model for business intelligence chose with the factors influencing business intelligence. Then, the questionnaire designed based on CMMI process for testing business intelligence process. Totally 99 valid questionnaire where gathered and by means of factor analysis methods both data and model were evaluated. In addition, the regression tests done in order to test the ability of model. Furthermore, the level of maturity of Iranian banking organization measured and introduced. Finally, the research limitations and some recommendation for further researches offered.

This paper examines the valuation effects of mergers & acquisitions in the Portuguese banking industry from 1995 to 2003 over a 41-day (-20, +20) event window. Evidence shows some targets gains, but no gains for the bidders. The combined entity (target+bidder) shows no significant gains contradicting some other European studies but confirming the great majority of American research.

- by Jacinto Vidigal da Silva
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- Business, Finance, Banking Industry

This paper aims at assessing the extent to which M&As in European banking sector over the [1996][1997][1998][1999][2000][2001][2002][2003] period result in two simultaneous catching up and convergence processes of consolidating groups.... more

- by Dhafer Saidane
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- Econometrics, Applied Economics, Productivity Analysis, Banking Industry

In today"s globalization and cut throat competition the banks are struggling to gain a competitive edge over each other. Apart from execution of business processes, the creation of knowledge base and its utilization for the benefit of the bank is becoming a strategy tool to compete. In recent years the ability to generate, capture and store data has increased enormously. The information contained in this data can be very important. The wide availability of huge amounts of data and the need for transforming such data into knowledge encourage IT industry to use data mining. The banking industry around the world has undergone a tremendous change in the way business is conducted. The banking industry has started realizing the need of the techniques like data mining which can help them to compete in the market. Leading banks are using Data Mining (DM) tools for customer segmentation and profitability, credit scoring and approval, predicting payment default, marketing, detecting fraudulent transactions, etc. This paper provides an overview of the concept of DM and highlights the applications of data mining to enhance the performance of some of the core business processes in banking industry.

- by Vijay Saini
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- Marketing, Finance, Data Mining, Mis

Abstract: This paper examines the incentive features of top-management compensation in the banking industry. Economic theory suggests that the compensation structures for bank management should have low pay-performance sensitivity because... more

- by Kose John
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- Corporate Governance, CEO compensation, Economic Theory, Banking Supervision

The study examines insurance as a suitable risk transfer mechanism for managing risks associated with the Nigerian banking industry. It explores risk and insurance; examines risks and features of insurable risks; outlines banking risks; highlights benefits of insurance to banks; and identifies banking risks and types of insurance banks purchase in Nigeria. The study adopts quantitative approach using the literature, and survey of 20 commercial banks in Nigeria selected through random probability sampling. Structured questionnaires were administered to 200 participants, 10 each from the 20 banks, selected through purposive sampling. The study concludes that banks purchase insurance to manage risks in the Nigerian banking industry; insurance is beneficial to banks and the economy; and insurance enhances banks' operations in the Nigerian banking industry. Implications for practice suggest that: insurance, if adequately arranged, serves as security and stimulus to banks; insurance facilitates spread of risk and stimulates banks' operations; and insurance reduces loss through risk prevention and reduction education. Thus, the study highlights the suitability of insurance for managing risks associated with banks' operations in Nigeria.

- by IOSR Journals
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- Financial Economics, Risk Management, Nigeria, Banking Industry
- by RHENA ONDEYO
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- Business, Banking Industry
- by Bruce Cooil
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- Marketing, Consumer Behavior, Customer Satisfaction, Customer Loyalty
- by Naijatrackz Media
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- Marketing Strategy, Banking Industry, Banking and Finance

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please... more

- by shadab ahamad
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- Marketing, Tourism, Services Marketing, Technology Adoption

Based on the lessons learned from the last 50 years, statements are derived of which the authors claim that these will continue to be valid in future: Information technology in the banking industry supports business processes – selecting and designing processes will continue to decide about economic success in future. The necessity of handling a growing business volume will still be the major driver for using new information technology in the banking industry. It will be even more important than the aim of reducing costs by automation. Industrialization of IT will also change the use of technology in the banking industry. Hence, banks do not necessarily have to run their systems alone but may outsource services if required. The definition of the major business fields will significantly influence the banks’ IT strategy and, among other factors, will decide on the market success of a bank. Technological development will have an increasing effect on the banking business, will change it, and enable new business models. Successfully dealing with technology-induced changes predominantly depends on a company’s employees.

- by Hermann-Josef Lamberti
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- Information Systems, Information Technology, Design process, IT Strategy

Credit risk analysis is an important topic in the financial risk management. Due to recent financial crises and regulatory concern of Basel II, credit risk analysis has been the major focus of financial and banking industry. An accurate estimation of credit risk could be transformed into a more efficient use of economic capital. In this study, we try to use a triple-phase neural network ensemble technique to design a credit risk evaluation system to discriminate good creditors from bad ones. In this model, many diverse neural network models are first created. Then an uncorrelation maximization algorithm is used to select the appropriate ensemble members. Finally, a reliability-based method is used for neural network ensemble. For further illustration, a publicly credit dataset is used to test the effectiveness of the proposed neural ensemble model.

- by varun Satish
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- Economic Capital, Credit Risk, Basel II, Financial Risk

Artificial intelligence (AI), from time to time called machine intelligence is simulation of human intelligence in machines. It is the intellect exhibited by machines, in contrast to the natural knowledge demonstrated by humans. From Siri to self-driving cars, AI is progressing at a rapid pace. Artificial intelligence consists of generally two fundamental ideas. First it involves studying human brains like how their thought process works and secondly it helps representing those processes through machine learning. Artificial Intelligence in finance is more than about chat bots. Artificial Intelligence has taken over numerous sectors including banking industry. The principal thought behind this investigation was to comprehend the impact of AI on present day banking. This research mainly focuses on the concept of AI in the field of banking, how it has brought revolutionary changes in banking and its impact on human manpower. As we are aware that humans tend to commit errors, but the world is evolving so does the innovations, there is lack of skilled talents required to handle the automation. Several Banking 4.0: "The Influence of Artificial Intelligence on the Banking Industry & How AI is Changing the Face of Modern Day Banks routine and manual tasks which were earlier performed by the humans are now being replaced by the automated machines with advance technology. Given that the business is experiencing noteworthy change at a quick pace, this research is a preview of the current applications of AI in the banking industry and how it is changing the face of banking in India.

- by IAEME Publication
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- Artificial Intelligence, Machine Learning, Financial Sector, Banking Industry

This paper explores the factors influencing the board composition of an international sample of commercial banks over the period 1996-2006. After considering the dual role of the board as monitor and advisor, our analysis shows that no one board composition is optimal for the banking industry and that any such recommendation could harm bank governance. Our results suggest that more complex banks that have a low ownership concentration and are headquartered in a civil law country should have larger and more independent boards.

- by Eleuterio Vallelado and +3
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- Banking, Applied Economics, Banking Industry

Implementing an Enterprise Resource Planning (ERP) system project is a difficult and high cost proposition as it places tremendous demands on organization's time and resources. The ERP implementation literature contains many case studies of organizations that have implemented ERP systems successfully. However, many organizations do not achieve success in their ERP implementation projects. Much has been written about implementation and the critical success factors for ERP implementation projects. But there very few studies have scientifically developed and tested constructs that represent critical success factors of ERP implementation projects. Based on a survey of 53 organizations in Australia, the results suggest that a 65 item instrument that measures seven dimensions of ERP implementation is well -validated. It is argued that model proposed in the paper is valuable to researchers and practitioners interested in implementing Enterprise Resource Planning systems.

- by Annamalai Chockalingam
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- Business, Information Systems, Civil Engineering, Social Sciences

Using institutional theory to interpret the role of management accounting in organizational change, the paper reports on a longitudinal empirical study of the implementation of an Activity-Based Costing (ABC) system in the Clearing Department of a UK-based multinational bank. Since the ABC project team was operating at the same time as other change agents (productivity consultants and human resource engineering), their interrelationships are explored through the displacement/establishment of routines and institutionalized practices. The extent and nature of organizational change is evaluated by drawing on the dichotomies of formal versus informal change, revolutionary versus evolutionary change, and regressive versus progressive change (Burns and Scapens, 2000). Tensions were identified between the need to establish ABC as an organizational routine thereby ensuring its reproduction with the less routinized but more revolutionary aspirations of ABM. The ABC team succeeded in institutionalizing a less radical version of ABC that revealed new links between costs and products, but did not go as far as to transform the strategic thinking of the bank's senior management.

- by John Cullen
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- Sociology, Organizational Change, Management Accounting, Institutional Theory
- by Maurizio Zollo
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- Marketing, Organizational Learning, Strategic Management, Learning

In response to the lack of empirical studies examining the internal disclosure behavior in the Chinese context, this study tested a whistleblowing-decision-making process among employees in the Chinese banking industry. For would-be whistleblowers, positive affect and organizational ethical culture were hypothesized to enhance the expected efficacy of their whistleblowing intention, by providing collective norms concerning legitimate, management-sanctioned behavior. Questionnaire surveys were collected from 364 employees in 10 banks in the Hangzhou City, China. By and large, the findings supported the hypotheses. Issues of whistleblowing in the Chinese context and implications were discussed.

- by Randy Chiu
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- Marketing, Business Ethics, Applied Ethics, Organizational Culture

Purpose -This paper aims to examine how international banking groups manage their branding in the context of successive mergers and acquisitions. It seeks to review of a number of case histories in order to show that banking companies tend to evolve a multi-tiered system for absorbing and rebranding acquisitions and it also seeks to present a general framework to guide future research and practice. Design/methodology/approach -The banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. These transactions vary in scale and location, from major mergers of large, equal-sized international entities to acquisitions of smaller, local businesses in various countries all around the world. This paper brings together the literature on mergers and acquisitions, which mostly comes from economics and finance, with the marketing literature on branding and rebranding, to create a framework to help us to understand the management challenge of rebranding bank brands in this context. Citigroup and Crédit Agricole are used as a preliminary test of this framework.

- by Laurent Muzellec
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- Marketing, Brands, Bank, Merger and Acquisition

The present study investigates the impact of bank's characteristics, macroeconomic conditions and financial market structure on bank's net interest margin and return on average assets (ROAA) in the UK commercial banking industry over the period 1995- 2002. The results show that the ratio cost to income is negative and statistically significant in all cases. Liquidity is negatively related to NIM

- by Kyriaki Kosmidou
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- Stock Market, Profitability, Statistical Significance, Macroeconomic Variables

We are very delighted to inform you that, we have completed the report on "Assessment of Non-performing Loans of BRAC Bank and Possible Remedies" successfully as a partial requirement of the course no F-209. We enjoyed preparing this report and we are very thankful to you for giving us such a wonderful opportunity of widening our knowledge from the pages of our book to the field of practice.

- by Muhammad Jubayer
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- Banking Industry, Non performing loans, Brac Bank Ltd of Bangladesh

This paper studies the effectiveness of the implementation of trade facilitation measures in member countries of the Association of Southeast Asian Nations (ASEAN). We evaluate trade facilitation performance and indicate trade facilitation needs and priorities that vary between ASEAN members. In particular, we examine logistics-related costs in ASEAN and whether the current level of logistics-related costs could be a burden or an advantage for ASEAN countries. We also identify critical barriers that have impacts on logistics services related to foreign investment and customs across ASEAN. Finally, we propose recommendations for the harmonisation of logistics policies in ASEAN countries aimed at the development of the ASEAN Economic Community.

- by Nguyen Anh
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- Banking Industry

In this digital age organizations depend upon the technologies to provide customer-centric solutions by understanding well about their customers' behaviour and continuously improving business process of the organization. Business intelligence (BI) applications will play a vital role at this stage by discovering the knowledge hidden in internal as well as external sources. On the other hand, Knowledge Management (KM) will enhance the organisations performance by providing collaborative tools to learn, create and share the knowledge among the employees. The main intention of the BI is to enhance the employees' knowledge with information that allows them to make decisions to achieve its organisational strategies. However only twenty percent of data exist in structured form, majority of banks knowledge is in unstructured or minds of its employees. Organizations are needed to integrate KM with Knowledge which is discovered from data and information. The purpose of this paper is to discuss the need of business insiders in the process of knowledge discovery and distribution, to make BI more relevant to business of the bank. We have also discussed about the BI/KM applications in banking industry and provided a framework to integrate BI and KM in banking industry.

Perceived organizational support has been considered attention as main variable of research for long period. A number of studies have conducted on this variable. Due to its importance, latest researches are still considered as key variable. There is lack of researches about perceived organizational support in developing country like Pakistan. The main focus of this study is to explore the relationship of job autonomy, job security and employees training with perceived organizational support. Job autonomy, job security and employees training are considered as independent variables while perceived organizational support is taken as dependent variable. In this regard, current study has proposed three hypotheses about the positive relationship of these variables. This research has carried out on banking industry of Pakistan. For this purpose, sample of 312 respondents of city Lahore was selected randomly. For this purpose a structured questionnaire was designed for collection of primary data. Software, AMOS and SPPS were utilized for statistical analyses. Factor analysis, reliability analysis, regression analysis and correlation analysis were the test for conducting the current study. Results of this study have confirmed that job autonomy, job security and employees training are positively associated with perceived organizational support.

- by Rana Ali Haider
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- Factor analysis, Developing Country, Reliability Analysis, Regression Analysis

ICT has taken the center stage in almost every aspect of human endeavor. ICT help banks improve the efficiency and effectiveness of services offered to customers, and enhances business processes, managerial decision making, and workgroup collaborations, which strengthens their competitive positions in rapidly changing and emerging economies. This paper considers the impacts and trends of ICTs on the banking industry of the 21 st century. Four (4) parameters, namely: productivity, market

- by Matthew Luka
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- Decision Making, Emerging Economies, Case Study, Business Process

This study aims to examine the job satisfaction among employees in one of the Malaysian banking institutions. In particular, the study explores the differences between intrinsic and extrinsic satisfaction factors. Multistage sampling was employed in this study, whereby simple random sampling and cluster sampling were used. A quantitative (survey) method was employed in this study, in which questionnaires were distributed to 353 bank employees (managerial and non-managerial), but with only 174 valid responses received. The data were then analysed using descriptive statistics and one sample t-test through the Statistical Package for the Social Sciences (SPSS) version 22.0. Based on the findings, the employees at the banking institution were slightly satisfied with their jobs. One sample t-test revealed that the intrinsic and extrinsic satisfaction factors are significantly positive. Hence, the results call upon the management of the bank institution to foster both intrinsic and extrinsic satisfaction factors in order to enhance the employees' satisfaction that will link to the increase of the organisation's productivity.

- by Chan Tak Jie and +1
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- Job Satisfaction, Intrinsic motivation, Banking Industry, Extrinsic Motivation

There exist a vast number of studies on the banking industry. However, the insurance industry remains relatively unexplored. Increasingly, Austrian insurance institutions are becoming important as financial intermediaries in the domestic market, and – based on proximity advantage – also in the Central and Eastern European markets. This paper applies the structure, conduct and performance (SCP) approach to a sample

- by Adusei Jumah
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- Market Structure, Performance Analysis, Profitability, Banking Industry

Purpose – Foreign and local banks in Malaysia are competing in terms of skilled staff, innovative products
and services, rendering quality services and customer satisfaction. The purpose of this paper is to examine
the overall service quality and customer satisfaction of both foreign and local banks.
Design/methodology/approach – The data used to test the hypothesis were collected from 748 foreign
and local bank customers in Malaysia. The research model was analysed using a structural equation
modelling technique.
Findings – Results show that knowledge and staff competencies, as well as convenience of the bank is more
significant for local bank customers while bank image and internet banking are important components for
foreign bank customers. The results also reveal that foreign bank customers have higher satisfaction as
compared to local bank customers.
Research limitations/implications – No analysis is undertaken of any difference in the service quality
dimensions between banks of different size. Further research on banking services could usefully test services
quality dimensions across banks of different sizes.
Practical implications – The findings serve as a valuable reference for local banks understand
service quality challenges they may face from foreign banks in this competitive industry. Findings suggest
that, to provide high-quality services, financial institutions need to heighten customer satisfaction
differentiation strategies.
Originality/value – The outcomes of this study enhance the knowledge on the performance of both local
and foreign banks in Malaysia as well as customer satisfaction, which are invaluable to all bank managers
and industry players in improving their services.
Keywords Satisfaction, Service quality, Internet banking, Bank ownership, Foreign bank, Local bank

The significant role of banks in stabilising the financial systems of countries and in spurring their economic growth explains the particularities of their own corporate governance. The specificity of banks, the volatility of financial markets, increased competition and diversification expose banks to risks and challenges. Managing financial risk is a key element for improving corporate governance in the banking sector. Banks are heavily regulated and supervised in all countries, which sets a particular corporate governance framework for the banking industry. This paper examines some key factors which contribute to ensuring an effective regulatory and supervisory framework for banks, in the context of financial integration. I place emphasis on the importance of consolidated bank supervision.

- by Cristina Ungureanu
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- European integration, Corporate Governance, Economic Growth, Risk Management

In today's competitive markets for a business success it is essential to fully understand customers, to strive to maximally satisfy their desires and preferences, and on this basis build a solid, long-term and fruitful relationship with customers. This is the core of customer relationship management. Good customer understanding is the basis for increase of customer lifetime value, which encompasses customer segmentation. The goal of customer segmentation is to group customers by common characteristics in the way that created segments are profitable and growing which will enable companies to target each segment with specific offerings. This cannot be done without utilization of intelligent methods and techniques for data analysis. The focus of this research is on business strategy driven customer segmentation, in attempt to maximize customer potentials which is the most important resource in business, with the focus on credit users' segmentation task in banking industry. Presented case study illustrates usage of multilayer feed forward neural network to segment bank customers into two groups: customers who have and who have not problems with payments.

- by Olivera Grljevic
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- Data Mining, Data Analysis, Customer Relationship Management, Neural Network

Renovation in Indian banks is taking place from all aspects and is being refined as time proceeds and the products of the banking industry are enthusiastically modifying the face of banking. This paper defines the way renovation has affected the banking sector and the approach of using IT products which has changed the face of banking sector in India. It tells about the current scenario of the banking industry; and the factors that have brought changes in the industry; and how these factors have contributed to the development of banking. This paper shows how banks have now flourished into one-stop Supermarkets. Their focus is flowing from bulk banking to class banking with introduction of value added and customized products. Technology helps banks to create what appearances like a branch in a business building's lobby without taking to hire manpower for manual operations. These branches are 24 x 7 working which has been made possible due to ATMs, Tele banking, Internet Banking, E-banking and Mobile Banking. The technology determined delivery channels which are used to reach maximum customers in most effective manner and at lowest cost. The splendor of these banking novelties is that it puts both customer and banker in a win-win situation. The need is to design a system to promote marginal efficiency of investment in technology and to increase the gap between marginal benefits and marginal cost involved in Banking Innovation with special reference to technological up gradation. In the paper survey on use of several E-channels and issues related to them is also shown.

- by IOSR Journals
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- Finance, Banking, Banking Industry, Computerization

The purpose of this paper is to determine those factors that influence the adoption of internet banking services in Tunisia. A theoretical model is provided that conceptualizes and links different factors influencing the adoption of internet banking. A total of 253 respondents in Tunisia were sampled for responding: 95 were internet bank users, 158 were internet bank non users. Factor analyses and regression technique are employed to study the relationship. The results of the model tested clearly that use of internet banking in Tunisia is influenced most strongly by convenience, risk, security and prior internet knowledge. Only information on online banking did not affect intention to use internet banking service in Tunisia. The results also propose that demographic factors impact significantly internet banking behaviour, specifically, occupation and instruction. Finally, this paper suggests that an understanding the factors affecting intention to use internet banking is very important to the practitioners who plan and promote new forms of banking in the current competitive market.

- by Sharmila Pudaruth and +1
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- Information Systems, Marketing, Finance, Information Technology

This study attempted to identify the relationship between job satisfaction and organizational loyalty of employees who are working in banking industry in Ho Chi Minh City (HCMC). In addition, this study also elicited employee's views on the different factors contributing to their loyalty toward their current banks. Quantitative approach was the major method used, with statistical techniques applied, including factor, multiple regression, and path analyses. The unit of analysis was at individual level with the sample size of 201 employees of eleven banks operating in HCMC. The findings of this study indicated that the higher levels of satisfaction, supervisor support, fringe benefits, teamwork, working environment, and training were positively associated with the higher level of organizational loyalty. The factors of satisfaction, supervisor support, teamwork, and working environment play crucial roles and significantly affect employees' loyalty. Based on the results of the path analysis, this study argued that in order to achieve high employee loyalty, companies in banking industry should achieve high level of employee job satisfaction, enhance supervisor support and teamwork among employees, and provide good working environment.

- by Tú Nguyễn
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- Path Analysis, Banking Industry, Employee job satisfaction
- by Maria Cabrita
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- Finance, Human Capital, Capital Structure, Intellectual Capital

A descriptive research was conducted to examine the infl uences of functional (service process) and technical (service outcome) quality on customer satisfaction and trust among retail bank clients towards their main local banks with which they have key relationships in Malaysia. The study was undertaken among adults aged 18 years and above who reside in the Klang Valley. Convenience sampling of mall-intercept with questionnaire survey approach was employed in selecting the 400 respondents. The data were analysed by multiple regression analysis to test the hypotheses. The study disclosed that technical quality, functional quality and customer satisfaction have signifi cant direct infl uences on trust. In return, customer satisfaction was found related to the functional as well as technical quality. Interestingly, technical quality was found to have a greater infl uence than functional quality on both customer satisfaction and trust in banks. Subsequently, the causal path analysis identifi es customer satisfaction as having the greatest direct effect on trust while technical quality was found having the greatest overall effect (direct and indirect) on trust. Therefore, bankers who wish to engender trust among their retail customers should focus more on the service outcome than the delivery process of their services.

- by Lam Yong and +1
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- Customer Satisfaction, Customer Loyalty, Retail Banking, Path Analysis

CSR, or Corporate Social Responsibility, is a huge advantage for financial firms in today's consumer-driven environment, where customer trust is everything. CSR is an excellent business for the more than 13,000 financial institutions in the United States that have implemented it. Corporate social responsibility initiatives enable a company to use its strengths to assist the local community. Spreading CSR activities across departments, letting each contribute to social responsibility in their unique way, reduces investment while maximizing returns, benefiting both you and the community. This, in turn, has a demonstrable influence across departments as you engage in community outreach, financial literacy, more diversity of accessible and offers, and indirectly, the environment. The merits of corporate social responsibility extend beyond demonstrating that your company is a do-gooder or attempting to mitigate customer distrust. Good CSR actively strives to increase your community's and consumers' abilities to participate with your company in meaningful ways. In this article, I'll explain why corporate social responsibility is so important in financial organizations. I will discuss what CSR is, the significance of CSR in the EVERFI model, and how to be a socially responsible firm. I'll look at several worldwide instances of CSR in financial organizations, particularly banks. I'll check at empirical CSR analysis in the global banking business. I'll look into many forms of CSR activities that financial firms might engage in.

A service recovery performance model is proposed and tested with data from frontline bank employees in Turkey. The model is derived from Bagozzi's (1992) reformulation of attitude theory. The empirical results suggest that top management commitment to service quality, as manifested by frontline employees' appraisal of training, empowerment, and rewards, has a significant effect on their perceptions of service recovery performance. The influence of management commitment to service quality on service recovery performance is mediated by frontline employees' affective commitment to their organization and job satisfaction. Implications of the results and further research avenues are discussed.

- by osman karatepe
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- Marketing, Service Quality, Job Satisfaction, Public sector

The banking industry is one of the major sectors contributing to the Bangladesh economy; it needs a considerable number of qualified and potential employees to attain the organization's goal. This study's main objective is to evaluate the effectiveness of the recruitment and selection process in the banking industry of Bangladesh based on the perception and experience of recently recruited employees in different private and public limited banks. Primary data were used to conduct a quantitative analysis for the following research problem. Therefore, 84 samples were retrieved out of 100 samples. Diagnostic test concludes that primary data are not normally distributed. In order to analyze the overall perception, Kruskal Wallis Test was applied as a measure of non-parametric test statistics. The findings disclose that median group identified significant relationship among E-recruitment strategies, Use of assessment centres, and processing time of recruitment with the overall perception of employees on recruitment and selection process. Finally, the study suggests that shortening the total procedural time, using innovative technology, and reviewing the policy regarding the recruitment and selection process can enable sound recruitment and selection practice in Bangladesh.

- by Md. Mufidur Rahman and +1
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- Human Resource Management, Human Resources, Bangladesh, Banking Industry

Employee satisfaction plays a key role on both the individual and organisation. Employee satisfaction will result in improving organisation productivity. The present study is carried out to comprehend the effect of HRM Practices in banking sector. This study is based on both primary and secondary data, reviewing the literatures related to HRM Practices, employee satisfaction, in banks of chittoor district. The objective of the study focuses on understanding Effect of HRM practices on Employee satisfaction banking organizations on employee satisfaction towards organization. The study results revealed that there is significant impact of HRM practices on employee satisfaction.

The main objective of research paper is to assess the "Impact of High Performance Work System (HPWS) on Organizational Performance (OP) in Banking Sector of Azad Jammu and Kashmir". It has been well proven from existing body of knowledge that a well devised HPWS is one of the factors which can enhance the performance level in organizations. The present research work will investigate the linkage between HPWS and OP through mediating role of OCB in banking sector of Azad Jammu and Kashmir. Seven HPWS practices i-e Performance Based Rewards, Result Oriented Appraisal, Clear Job Design, High Levels of Training, Internal Mobility and Rigorous Hiring processes have been taken for the study. The adopted indicators of organizational performance constructed on cumulative performance level. Study is exploratory in nature because its main focus is on either HPWS-OP relationship will be mediated by OCB or not. Data has collected from employees of cadre Grade 1, Grade 2, and Grade 3 officers of the banks through structured questionnaires. The hypotheses have been tested by correlation and multiple regression analysis. Two steps multiple hierarchal regression is applied to test mediation. Cronbach's alpha is used to test the validity and reliability of the measured constructs. Similarly, correlation and regression estimates pointed out that all the variables under study were positively related to each other. Outcomes of the study also exhibited positive and direct relationship between HPWS-OP relationships. Furthermore, it has also inveterate that OCB mediated the association between HPWS and OP. The research paper presented insights that rigorous hiring processes, high level of training and performance based rewards of HPWS practices appears as a strongest forecaster of OP and are most effective practices to determine the volumes of OP in the culture of High Performance Work Systems and Organizational Performance: The Mediating Role of Organizational Citizenship Behaviour http://www.iaeme.com/IJM/index.asp 388 editor@iaeme.com banking sector of AJ&K. Therefore, it has proven that if high performance human resource management practices are designed prudently and subsequently executed in such a way that it becomes challenging for the potential competitors to reproduce then only organizations upshots competitive edge.

This paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state owned banks if they undergo consolidation. Scale economies, returns to scale and profit efficiency of state owned banks during 1986 to 2003 are estimated based on stochastic frontier analysis. We find that many Indian banks exhibit potential cost savings from mergers provided they rationalize their branch networks although profit efficiency may not rise immediately. Second we measure the realized impact of bank mergers on shareholders" wealth based on event study analysis. We find that in the case of forced mergers, shareholders of neither the bidder nor the target banks benefited. In the case of voluntary mergers, the bidder banks" shareholders gained more than the target banks" shareholders.

- by Rudra Sensarma
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- Scale Economies, Financial Services, Event Study, Profitability
- by Oladele Kehinde and +3
- •
- Customer Satisfaction, Banking Industry