Current Issue : October-December Volume : 2024 Issue Number : 4 Articles : 5 Articles
This study examines the determinants of bank profitability using a quantile regression approach, offering insights into factors affecting banks across different percentiles of profitability. Utilizing a comprehensive database from Orbis covering 1200 top-market institutions across 101 countries, the research uniquely employs dynamic panel quantile regression while addressing sample survival bias. Our findings highlight that bank size and capital adequacy negatively impact profitability, whereas market value exerts a positive influence on higher profitability banks. Credit risk affects profitability differently across levels of profitability, and inflation rate shows significance only for higher profitability banks. The study contributes to the existing literature by offering valuable insights into the factors determining bank profitability and how they behave at different percentiles in the sample, suggesting the importance of bank efficiency and competition in promoting economic growth....
This study focused on exploring the utilization of development finance effectiveness in Ethiopia as a strategic enabler to sustainable development and economic growth of the country. The research specially doweled on the background trend of development finance in Ethiopia, assessing on the effectiveness of development finance utilization and comparing development finance to foreign direct investment. In order to generate a realistic data, secondary data such as document investigation methods in soft and hard copy and personal observation has been employed. Eventually, the research findings revealed that in the past two decades, Ethiopia received development finance in billion dollars from multilaterals and bilateral donors although the effective utilization is needed to be improved immensely. The Ethiopian Home-Grown Economic Reforms which have been introduced in part I and II were instrumental to ensure sustainable development and economic growth of the country including the utilization of effective development finance. Moreover, the research revealed that in comparing development finance to foreign direct investment, Ethiopia equally received the same 3.4 billion dollars USD in the year 2023 showed that the government should pay due attention to development finance as one of the enablers for economic advancement. Finally, the study recommended establishing especial monitoring end evaluation body, encouraging and incentivizing the staffs working on development finance implementation, ensuring strong law enforcement, and depending on indigenous home-grown development programs are the recommendations so as to Ethiopia emancipate itself from foreign dependency including development finance....
This study examines whether the type of financial structure in the GCC influences the relationship between liquidity risk and banks’ performance from 2007 to 2021. By employing fixed effects and fully modified ordinary least squares (FMOLS), we find that the impact of liquidity risk on bank profitability differs among bank-based and market-based systems. Specifically, the results show that the profitability of banks operating in bank-based countries is positively influenced by the liquidity risk compared to their counterparts. The study also demonstrates that the global financial crisis increases banks’ profitability in the bank-based financial system. Furthermore, the results show that gross domestic product growth (GDPG) determines banks’ financial profitability in the banks-based market. This study offers some important implications for policymakers to consider the type of financial system to stimulate bank stability....
Mobile Financial Services (MFS) are seen as a new reliable means used by banks, microfinance institutions, telecommunications operators and users to carry out financial transactions in the deposit, withdrawal and electronic transfer of Money. Electronic transactions are a positive consequence of the deployment and coverage of mobile and Internet networks using mobile technologies and the mobile terminal in carrying out and completing of transactions by linking the mobile financial services users, Agent and Super- Agent connected to mobile money (Mm) or mobile banking (Mb) platforms to offer the services. This article looks at the current state of operation and use of mobile financial services, in particular mobile money and mobile banking, using figures to indicate the key indicators relating to the development of this service and the level of penetration among the population in Burundi and the countries of the East African Community (EAC). This article will show the progressive existence of online transactions, e-transaction (e-payment) for payment, declarations and migration services. In conclusion, mobile financial services in EAC countries are a new source of growth in monetary terms and offer advantages in terms of speed of action, security and reliability of transactions. The MFS is an important indicator of the role played by the use of Information and Communication Technologies (ICT) using mobile telephony and the Internet for the digital transformation of banks and other growth sectors in the development of countries in the sub-region....
This paper describes an innovative financial service for granting credit involving three actors simultaneously: an employee, a company, and a financial institution. In this innovative method of financing, the employee is the borrower, and the company bears the risk of default in its capacity as the entity responsible for reimbursing the timelines. That requires that both parties are contractually bound. The FinTech is the financing organization. From an example of salary advances, we demonstrate that this financial service is advantageous for the employee, profitable for the financial institution for any positive interest rate, and the employer in terms of loyalty and motivating high-potential executives....
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