European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Commercial Banks

The Effects of the Budgetary Process on the Financial Performance of Commercial Banks in Tanzania: A Case of CRDB, NMB AND NBC (Published)

The objective of the study was to investigate the effect of budgetary process on the Financial Performance of Commercial Banks which were NBC, NMB and CRDB in Dodoma Tanzania. The mixed method was used as both qualitative and quantitative data were used. The descriptive survey was used whereas randomly sampling was used to secure 95 respondents. Survey, interview and documentary review were used to collect data meanwhile descriptive and multiple regressions were used in data analysis. There was grounded on Resources allocation theory and structure efficiency theory. The results showed that budgetary process had positive and significant effect of Financial Performance of Commercial Banks. This is because R2 = 58.6% while at F (8, 87) = 28.86, p < 0.000 implied that budget process had positive and significant effect on FP of CBs in Dodoma Tanzania. Researcher recommended that budgetary process should be enhanced through an increased participation and enhance on internal controls.

Keywords: Commercial Banks, Financial Performance, budgetary process

Credit Risk Management and Financial Performance of Commercial in DRC (Published)

This study had two specific objectives which are:  Establish the effect of credit risk management on performance of commercial banks in DRC. And to identify the most healthiness Commercial banks in DRC. In this study we have responded to two questions:  Is there a relationship between the credit risk management and the performance of Commercial banks in DRC? What’s the healthiness commercial bank in DRC? After analysis we concluded that the credit risk management has not any impact with the financial performance of commercial banks in DRC and the best commercial bank in DRC was BCDC during the time covered by this study

Citation : Duniamastaki Jean (2022) Credit Risk Management and Financial Performance of Commercial in DRC, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 10, pp.34-54

Keywords: Commercial Banks, Credit, DRC, Financial Performance, Risk

Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana (Published)

Citation: Divine Vulley (2022) Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.63-75

This study examines the factors influencing the effectiveness of internal control systems in the banking industry in Ghana. The study adopted the quantitative approach using the survey design to obtain data from 130 participants from selected Commercial banks in Ghana. For data analysis, Statistical Package for the Social Sciences (SPSS version 24) was utilized. A number of descriptive statistical tests and in a combination of Exploration Factor Analysis (EFA) and Confirmation Factor Analysis (CFA) was used. The statistical tools used include mean, standard deviation, frequency and Ordinary Least squares (OLS) regression. The study found critical factors driving Internal Control system (ICS) within the banking sector in Ghana to include the environment control, risk assessment, control activities, information communication technology (ICT), and monitoring activities. The study discovered that some of the ways required to improve ICS include consistent revision of policies and procedures as well as provision of adequate training and communication on ICS to staff. It is also recommended that employees should be involved in the development of control mechanisms to make them own the system which will promote its enforcement to influence operational efficiency. 

Keywords: Commercial Banks, Effectiveness, Ghana, Internal Control System

Agent Banking and Sustainable Competitive Advantage for Commercial Banks in Kenya (Published)

Most Kenyan banks with the exception of a few tire one banks have not yet fully exploited agent banking practices. This paper draws upon the Bank Led theory to examine the relationship between agent banking and sustaining competitive advantages for commercial banks in Kenya.The study targets head of departments and branch managers from commercial banks in Nairobi County using a census approach.  Questionnaires were used for data collection and a combination of descriptive and inferential statistics for data analysis.As depicted in this paper, Agent banking (r=.575, p=0.000) has a linear relationship with sustainable competitive advantage. In addition, the regression model indicated that agent banking had coefficients of 0.292 with corresponding p=0.042<0.05. The positive coefficient implies that agent banking significantly contributed 29.2% of the commercial bank’s competitive edge at 5% level of significance. This would however reduce to 20.5% significant at with the intervention of bank regulations which play a part in ensuring that the stability and safety of banks is maintained. Agent banking is positively related with sustainable competitive advantage and can be significantly influenced by bank regulation. The paper recommends that commercial banks ought to explore agent banking as a tool in advancing sustainable competitive advantage. Tier 1 commercial banks should include budgets specifically for agent banking services in order to move with the technology use.Competitive advantage, agent baking, retail agents, commercial banks, bank regulation, strategy.

Citation: Mwaiwa F., Kwasira J., Boit R., and Chelule J. (2022) Agent Banking and Sustainable Competitive Advantage for Commercial Banks in Kenya, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.36-51


Keywords: Agent banking, Commercial Banks, Kenya, Sustainable Competitive Advantage

Corporate Governance and Commercial Banks’ Performance in Uganda (Published)

More than ten commercial banks have collapsed in Uganda in the last two decades due to problems such as frauds, insider lending by dominant shareholders, weak boards of directors, non-performing loans portfolios, and managerial opportunism. This paper aims to investigate the impact of corporate governance on commercial banks’ performance in Uganda. The study adopted a survey-based approach to purposively collect data from the respondents of all licensed commercial banks in Uganda at the time of the study.  Data was collected using a self-administered research instrument on the most emphasized corporate governance variables of board composition, board size, capital adequacy ratio, and the independent audit committee for the performance of banks. The data quality control was ensured by establishing the internal consistency of the research instrument that resulted in an overall Cronbach’s reliability coefficient of 0.78. The data was analyzed using hierarchical multiple regression analysis statistical technique after controlling for bank size and leverage. Using an alpha level of 0.05, the study found that the change in R-squared was 27.9% with a non-significant change in F (4,14) = 1.64, p = 0.219. Secondly, for the whole model F (6,14) = 1.587, p = 0.223 which signified that was no significant impact of corporate governance on commercial banks’ performance in Uganda while controlling for bank size and leverage. In order to improve bank performance in Uganda, the central bank should step up the supervisory and regulatory policies. This would involve proactive strategies such as regular review of corporate governance instruments like the Financial Institutions Corporate Governance Regulations (2005) so as to counteract any new threats to the banking sector which could render these instruments ineffective.

Keywords: Commercial Banks, Corporate Governance, Performance, Uganda

The Impact of Knowledge Management on the Performance of Commercial Banks’ Employees in Jordan (Published)

This study examined the impact of knowledge management on the performance of commercial banks’ employees in Jordan, the sample of the study consisted of 150 employee from 12 commercial banks located at Irbid Governorate of Jordan, a set of questionnaire was distributed to them and collected in order to conduct this study. Descriptive statistics were used to analyze the data using the Statistical Package for the Social Sciences (SPSS). Simple regression test was used to test the hypotheses to achieve the objective of the study. The results of the study showed that there is a statistically significant impact at the level of (α ≤ 0.05) for knowledge management in the functional performance of employees of commercial banks, as well as, there are no differences in the responses of members of the sample to the impact of knowledge management on the performance of employees of commercial banks due to the functional variables (age, gender, academic qualification, and years of experience).

Keywords: Commercial Banks, Employees’ Performance, Knowledge Management, Total Quality Management

Credit Risk Management System of Commercial Banks: An Analysis of the Process (Published)

Credit risk is the risk that a financial institution will incur losses because the financial position of a borrower has deteriorated to the point that the value of an asset (including off-balance-sheet assets) is reduced or extinguished. The purpose of this work is to expatiate strategies to mitigate challenges resulting from unpaid loans, which could be used further in understanding the components of credit risk management (CRM) system of commercial banks (CBs) in a less developed economy. This was accomplished through the use of both primary (interviews) and secondary (various relevant documents) information from CBs and key management officials dealing with credit management. The investigation proved that credit risk can be managed and minimized when formidable strategic approaches are implemented and adhered to. This implies that the strategy operated by a bank is an important consideration for a CRM system to be successful. Ghana, a less developed economy, provides an excellent case for studying how CBs operating in economies with less developed financial sector manage their credit risk. 

Keywords: Borrower, Commercial Banks, Credit Risk Management, Loan

Studying the Role of Corporate Governance in the Development of Risk Management in Commercial Banks Listed At Amman Stock Exchange (Field Study) (Published)

The study aimed to identify the role of corporate governance in the development of risk management in commercial banks listed at Amman Stock Exchange (ASE). To achieve this goal, the researcher relied adopted an analytical descriptive approach in her study to be convenient to the study nature. A questionnaire has designed as a tool to collect data. It distributed to a sample survey of the members of the committee’s corporate governance, audit committees and risk management commissions in these banks. The questionnaires have statistically analyzed using Statistical Package for Social Sciences (SPSS). The most important findings of the study that the presence of the role of corporate governance committees resulting from the Board of Directors in development of risk management in banks listed at ASE. This role was in uneven degree, between medium and high. In addition, the role of audit committees is the most development in the risk management, followed by risk management committees, and finally to corporate governance committees. The study concluded a set of recommendations including: It is necessary to activate the role of committees in the exercise of its work in development of risk management in commercial banks listed at ASE. The sub-committees should constituted of the board of directors in accordance with corporate governance, which includes financially and accounting experienced members. Finally, the financial experience should not limited to a specific number of members

Keywords: Commercial Banks, Corporate Governance, Risk Management

Commercial Banks Role in Financing Small Scale Industries in Nigeria (A Study Of First Bank Plc. Ado-Ekiti, Ekiti State) (Published)

The research study examines the role of commercial banks in financing small scale enterprises in Ado Ekiti, Ekiti State. The primary purpose of the study is to examine how SMEs can be developed through the intervention of the banking sector. Descriptive research design was adopted. The population of the study is the entire SMEs in Ekiti state and United Bank for Africa (UBA). Questionnaires were used as an instrument of primary data collection. Purposive sampling technique was used to select the sample; correlation analysis was employed using chi-square. Findings revealed that there is a positive correlation between loans grants by banks and the growth and development of SMEs in Ekiti State also, that SMEs cannot be concentrated in Ekiti State if they are not effectively financed due to the relationship that exists between the banks and SMEs. It was recommended that guidelines/schemes by commercial banks to finance SMEs needs to be flexible to accommodate the small and medium scale entrepreneurs.

Keywords: Commercial Banks, Indigenization Decree, Industrial Development Centre, Small and Medium Scale enterprises., Small-scale industry, Sole Proprietorship

E-Banking and Performance of Commercial Banks in Rwanda A Case of Bank of Kigali (Published)

The purpose of this research was to examine the contribution of E-banking towards banking on performance of banking Institutions in Rwanda because according to National bank of Rwanda (NBR Report, 2012) there is delay in payment of checks between banks; time wasted in banks as people line in queue waiting for service, errors as a result of manual work and fraud related cases was common. Bank clients complain of the above hence the researcher was interested to examine the contribution of this system to banking efficiency in Rwanda. The study used descriptive research design by basing on qualitative and quantitative approach in order to get better analysis of the study. Both primary and secondary data collection tools were used with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Electronic banking system like ATM, Pay direct, electronic check conversion, mobile telephone banking and E transact has a great impact on bank performance because they increase profitability, reduce bank cost of operations, and increase bank asset and bank efficiency. The great contributions of e banking on banking performance is shown in table 4.21 which provides the relationship between E banking and Performance of bank of Kigali in Rwanda whereby the respondents N is 44 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .656** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between E banking and Performance of bank of Kigali in Rwanda. As conclusion E banking contributes to positive performance of banks as witnessed by of bank of Kigali.

Keywords: Bank of Kigali, Commercial Banks, Rwanda, e-Banking

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