scholarly journals Financial Inclusion Indicators and their Effect on Corporate Profitability

2020 ◽  
pp. 1-16
Author(s):  
Abdul Razzak Al-Chahadah ◽  
◽  
Amer Qasim ◽  
Ghaleb A. El Refae ◽  
◽  
...  
Keyword(s):  
World Bank ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Return On Assets ◽  
Bank Profitability ◽  
Firm Profitability ◽  
Applied Approach ◽  
The Relationship

The main objective of this research is to figure out the effect of financial inclusion indicators on the profitability of firms looking specifically on the banking sector in Jordan. The researchers used the applied approach relying on data of financial inclusion indicators published by the Central Bank of Jordan, World Bank, and Jordanian commercial banks. A regression analysis is employed to examine the relationship between financial inclusion and bank profitability (Return on Assets). Findings of the study showed that there is a significant relationship between financial inclusion and firm profitability. The study recommends that Jordanian commercial banks should increase access to financial services through different channels and tools in order to increase financial inclusion in the Jordanian community.

scholarly journals The Moderating Role of Capital Adequacy in the Effect of Liquidity on the Profitability of Islamic Banking

2020 ◽  
Vol 3 (2) ◽  
pp. 115-125
Author(s):  
Rury Diwira Registanaranti Yastika ◽  
Maria Rio Rita ◽  
Imanuel Madea Sakti
Keyword(s):  
Commercial Banks ◽  
Random Effect ◽  
Random Effect Model ◽  
Efficiency Factor ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Bank Profitability ◽  
Effect Model ◽  
The Relationship

This study aims to examine the effect of liquidity on profitability with capital adequacy as a moderating variable in Islamic commercial banks in Indonesia. The research sample was 14 Islamic commercial banks during the 2016 - 2018 observation period. The dependent variable is profitability measured using Return On Assets (ROA), the independent variable is liquidity measured using the Financing to Deposit Ratio (FDR), the moderating variable is measured using the Capital Aquendency Ratio (CAR), and several control variables. Non Performing Financing (NPF), Operational Efficiency (BOPO), and Bank Size (SIZE). Hypothesis testing uses multiple linear regression with a random effect model. The results showed that bank liquidity was not proven to increase bank profitability and capital adequacy was not proven to moderate the relationship between the two. The results indicated that the efficiency factor and problematic financing The results indicate that the efficiency factor and non-performing financing are the main factors in influencing bank profitability.

scholarly journals Financial Inclusion Disclosure: Empirical Evidence From Banking Industry Of Bangladesh

2021 ◽  
Vol 11 (1) ◽  
pp. 27-41
Author(s):  
Shaily Das
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Financial Inclusion ◽  
Annual Reports ◽  
Commercial Development ◽  
Banking Services ◽  
Rural Credit ◽  
Bank Disclosure

Financial inclusion refers to the procedure of making financial services accessible to all individuals and businesses at reasonable costs. Financial inclusion strives to address the constraints that retard people from participating in the financial sector. It has been drawn much attention for its contribution to economic and commercial development, raising inclusive growth, minimizing income inequality all over the world, especially in developing countries like Bangladesh. Central Bank of Bangladesh (Bangladesh Bank) formulated a financial inclusion policy in 2009 intending to make banking services available to unbanked people. This study examines the Financial Inclusion Disclosure by 30 Banks (5 state-owned banks and 25 private commercial banks) of Bangladesh, which are listed in the Dhaka Stock Exchange during the period 2015-2019. The objective of the study is to analyze the activities of the banking sector of Bangladesh for making banking services available to unbanked people. For that purpose, annual reports of the selected banks have been studied, and findings are demonstrated through graphs. According to the study findings, priority areas of financial inclusion include school banking, agent banking, street children account,10 taka farmers account, SME financing, rural credit, women entrepreneur loan, etc.  This study also shows the prospects of financial inclusion, financial inclusion issues that are highly emphasized, barriers to financial inclusion, and initiatives needed to overcome these barriers.  This study findings depict that the financial inclusion performance of state-owned banks of Bangladesh is relatively better than those of private commercial banks, and inclusion actions are increasing with time. Policymakers might use these findings and also the banks to ensure no eligible person remains unbanked.   Keywords: Bangladesh Bank; disclosure; financial inclusion; unbanked people

scholarly journals How is Size Related to Profitability? Post-Consolidation Evidence from Selected Banks in Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 30-38 ◽  
Author(s):  
Funso Kolapo ◽  
Lawrence Ajayi ◽  
Olufemi Aluko
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Negative Relationship ◽  
Regression Method ◽  
Return On Assets ◽  
Bank Profitability ◽  
Panel Data Regression ◽  
Data Regression ◽  
Firm Profitability ◽  
The Relationship

It is theoretically believed that increase in firm size would result to increase in firm profitability. Therefore, this study examines the relationship between size and profitability of six banks in Nigeria after the 2005 consolidation exercise. The measure of profitability is return on assets. Employing the static panel data regression method, the study found that size has an insignificant negative relationship with bank profitability. This study concludes that the 2005 consolidation exercise did not enhance the profitability of the selected banks.

scholarly journals Technology Adoption by Commercial Banks as an Aid in Financial Inclusion

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Dr. Meenakumari Koppisetty
Keyword(s):  
Technology Adoption ◽  
Financial Services ◽  
Commercial Banks ◽  
Financial Inclusion ◽  
Policy Makers ◽  
Demand And Supply ◽  
Direct Benefit ◽  
Settlement Systems ◽  
Reserve Bank ◽  
The Relationship

Financial inclusion is considered to be an important tool for inclusive growth and poverty alleviation. It involves delivery of financial services at affordable cost to poor and marginalized sections of the society. Access to financial services such as bank facilities, credit and insurance at affordable rates is important to improve their general living conditions as it provides an opportunity for saving and investment. Many studies have showcased the relationship between financial inclusion and equitable development. Government of India and Reserve Bank of India adopted bank led approach and promoted several measures through the medium of commercial banks such as the opening of ‘no-frill’ bank accounts, simplifying bank account opening procedures, use ofintermediaries such as Business Correspondents or Facilitators, relaxation of branch licensing policy, direct benefit transfer, mobile banking, etc. However, several demand and supply side impediments still exist.Technology came to be viewed as a solution not only to extend banking facilities to the unbanked, but also to reduce the transaction cost for banks and make financial inclusion a viable proposition. Technology in respect of payment and settlement systems, delivery of financial services, goes a long way in promoting financial inclusion. The study makes an attempt to examine the need for and the importance of technology adoption by banks and the effectiveness of various technology related products. The study hopefully serves to direct the attention of the policy makers to the need to devise and deliver appropriate financial products leveraging technology, promote awareness, address safety concerns, achieve wider application for more inclusiveness.

scholarly journals Equivalence of Islamic Financial Literation Index with Islamic Financial Inclusion Index in The Islamic Banking Sector: A Case Study of DIY Society

2019 ◽  
Vol 10 (2) ◽  
pp. 255
Author(s):  
Miftakhul Khasanah
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Quantitative Methods ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Public Access ◽  
Islamic Banking ◽  
Services Sector ◽  
The Relationship

<p><strong>Abstract:</strong> The purpose of this research is to find out and analyse the relationship between the Islamic financial literacy index and the Islamic financial inclusion index of the DIY community in the Islamic banking sector. The research uses descriptive quantitative methods. Data collection was carried out by distributing 663 questionnaires in the DIY province. The calculation of the index of Islamic financial literacy and inclusion was carried out by referring to the OJK calculation and Sharma method. From the results of the calculation of the Islamic financial literacy index in DIY Province, the results were 32.47% while the Islamic financial literacy index, specifically for the Islamic banking sector was 26.15%. This result is much higher than the calculation of the Islamic financial literacy index conducted by OJK in 2016. Financial literacy is closely related to financial inclusion so that there needs to be conformity and continuity between both of them. Achievement of financial literacy and inclusion strategies will be more efficient if carried out together so that the achievement of public access to the financial services sector can be done more optimally and can utilise financial products and services that are suitable to achieve sustainable economic prosperity.</p><p><strong>Abstrak:</strong> Tujuan dari penelitian ini adalah untuk mengetahui dan menganalisis keterkaitan antara indeks literasi keuangan syariah dan indeks inklusi keuangan syariah masyarakat DIY pada sektor perbankan Syariah. Penelitian menggunakan metode kuantitatif deskriptif. Pengumpulan data dilakukan dengan menyebarkan kuisioner di propinsi DIY. Perhitungan indeks literasi dan inklusi keuangan syariah dilakukan dengan merujuk pada perhitungan OJK dan metode Sharma. Dari hasil perhitungan indeks literasi keuangan Syariah di Propinsi DIY didapatkan hasil sebesar 32,47% sedangkan indeks literasi keuangan Syariah khusus untuk sektor perbankan syariah adalah 26,15%. Hasil ini jauh lebih tinggi daripada perhitungan indeks literasi keuangan syariah yang dilakukan OJK di DIY pada tahun 2016. Pencapaian strategi literasi dan inklusi keuangan akan lebih efisien jika dilakukan secara bersama-sama sehingga pencapaian akses masyarakat ke sektor jasa keuangan dapat dilakukan dengan lebih optimal dan dapat memanfaatkan produk dan layanan jasa keuangan yang sesuai untuk mencapai kesejahteraan keuangan yang berkelanjutan.</p>

scholarly journals BANK PROFITABILITY AND MACROECONOMY: EVIDENCE FROM LITHUANIA

2017 ◽  
Vol 24 (2) ◽  
pp. 383-405 ◽  
Author(s):  
Laurynas NARUŠEVIČIUS
Keyword(s):  
Banking Sector ◽  
Short Term ◽  
Empirical Examination ◽  
Bank Profitability ◽  
Pooled Mean Group ◽  
Real Gdp ◽  
Income Statement ◽  
Main Determinants ◽  
The Relationship

The purpose of this paper is to investigate the relationship between profitability of the Lithuanian banking sector and its internal and external determinants. We use the panel error correc­tion model to assess long-term and short-term determinants of items from bank income statements (net interest income, net fee and commission income and operating expenses). The results of the pooled mean group estimator show that bank size and real GDP are the main determinants in the long-term. Meanwhile, empirical examination suggests various variables as short-term determinants of income statement items. The pooled mean group estimation technique and the analysis of sepa­rate income statement items enable us to have a better insight into the Lithuanian banking sector and determinants of its revenue and expenses.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

scholarly journals Effects of International and Internal Remittances on Financial Inclusion in Ghana

2020 ◽  
Vol 4 (3) ◽  
pp. 109-123
Author(s):  
John Gartchie Gatsi
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Integration ◽  
Positive Impact ◽  
Financial Inclusion ◽  
International Money ◽  
International Remittances ◽  
Analytical Review ◽  
Money Transfers ◽  
The Relationship

This article examines the relationship between remittances and financial inclusion in Ghana. The data for the study was extracted from the results of an analytical review of the living standards survey indicators in Ghana. The methodological tools of the study are represented by a regression equation based on the use of the Force Entry Method to test the functioning of variables in the model. The study empirically confirms and theoretically proves that domestic remittances have a positive and significant impact on access to financial services, while international remittances affect the likelihood of opening a bank account, but do not have any significant impact on applying for a loan and lending to remittance households. It is substantiated that domestic and international money transfers have a significant positive impact on the opening of bank accounts, even when forging collateral. Based on the results of calculations, the paper substantiates the conclusion that remittances contribute to increasing the availability of financial services in Ghana. It was noted that domestic remittances have a greater potential to improve financial inclusion in Ghana than international remittances. The paper emphasizes that the provision of collateral is an important lever for lending to households. Remittances will have very little impact on financial inclusion when financial institutions require collateral to facilitate the application and grant. According to the results of the study, the following recommendation were provideds: development of a strategy to improve domestic remittances to increase indicators of financial inclusion and economic development; improving the conditions for remittances, especially domestic remittances, in order to ensure their flexibility and deepen financial integration; use of domestic remittances as collateral for household loans. Keywords: collateral, financial inclusion, financial institutions, Ghana, remittances, loan application, migration.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

The First Android Based Sharia Fintech Innovation In Indonesia To Increase Inclusive and Literate on Society’s Finance

2021 ◽  
Vol 1 (2) ◽  
pp. 01-19
Author(s):  
Suhartono Suhartono ◽  
Juniato Sidauruk ◽  
Octa Pratama Putra ◽  
Syamsul Bahri ◽  
Martias Martias ◽  
...  
Keyword(s):  
Financial Services ◽  
Research Method ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Descriptive Research ◽  
Technology Industry ◽  
Technical Procedure ◽  
Interview Session ◽  
Personal Finances ◽  
Financial Technology

Technology has become the part of today’s people life. Then, it is actually close to the application of it. Absolutely, it has example; such as the electricity for having more sophisticated in financial technology (Fin-Tech). The simplicity and speed of this technology have led people to adopt it in everyday’s life. One of the innovations in developing business and the economy, especially in the banking sector, is currently to develop Fintech (Financial Technology) which is able to facilitate all types of buying and selling transactions, investments and fundraising. Next, the purpose of this study is to explain and provide an understanding of the technical, procedures and benefits of the application, it is called Sharia FinTech. Then, it is also to contribute to the literature on the capacity of the latest technological and non-technological innovations. The research method used is descriptive research method with a qualitative approach. It is to describe and explore the phenomena in the form of engineering human innovation in the financial technology industry. It is done by taking into account the characteristics, quality, and interrelationships between activities It has several aspects; they are: conducting the observation, having an interview session, creating the documentation, and the last one is doing the Literature review. The result of this study is to increase the knowledge, skills and confidence of the community in managing personal finances to be better and to provide access to be having convenient and accountable financial services. Afterwards, this study linits on explaining and providing an understanding of the technical, procedure and benefits of Sharia Fintech for all people in need. Thence, the limitation of the research only discusses the role of Islamic Fintech in increasing the public financial inclusion and literacy. As for the the next researchers, they can be even wider by adding the collaboration of fintech and the banking world. The novelty of this research is the use of the android application as a digital platform in financial inclusion and literacy.

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