Recommendations Improving the Competition of Commercial Banks in Ho Chi Minh City (Published)
In Vietnam, commercial banks have limited administrative capacity, facing huge risks, affecting the economy. This fact requires each bank to continuously improve its governance capacity to compete not only with local banks but also with international credit institutions. Besides, the ability to mobilize and structure capital is one of the criteria for assessing the business performance, competition of commercial banks in terms of capital mobilization and reputation in the financial market. Good capital mobilization is the ability to occupy and expand the market share of commercial banks through the types of products to attract deposits from customers. Moreover, the large scale of capital and reasonable structure will allow commercial banks to develop business activities such as lending, investment and other financial services. Capital mobilization is determined by the size and growth of capital resources over time. In addition, the research results showed that there were 200 commercial bank managers who interviewed and answered about 12 questions. The Data collected from 15/07/2016 to 15/06/2017 in Ho Chi Minh City. The researcher had analyzed Cronbach’s alpha, KMO test, the result of KMO analysis used for multiple regression analysis. The research results were processed from SPSS 20.0 software. Finally, the researcher has recommendations improving the competition of commercial banks in Ho Chi Minh City for the next year.
Keywords: Banking, Banking University, Commercial Bank, Competition
An Empirical Evidence on impact of Credit Management, Liquidity Position and Profitability of Nigerian Banking Sector (Review Completed - Accepted)
The study critically examines the relationship between credit management, liquidity position and profitability of some selected banks in Nigeria using annual data of ten banks over the period of 2006 to 2010. Time series properties of all variables used in the estimation were examined through Augmented Dickey Fuller (ADF) test in order to obtain reliable results. It shows that all the variables were stationary and significant at first differences. The results from Ordinary Least Square (OLS) estimate found that current ratio is positively related to debt ratio and significant at 1% level. This confirms the alternative “risk absorption” hypothesis, which stipulates that efficient credit management enhances firms’ ability to create liquidity. In addition, the result shows that ROA has significant positive effect on current ratio confirming the “financial fragility – crowding out” hypothesis which stipulate that the ability of firms’ to maintain certain degree of liquidity reduces firms’ profitability enhancement. This conclusion has important policy implications for emerging countries like Nigeria as it suggests that when a company’s credit policy is favourable, liquidity is at a desirable level and lastly, the findings revealed that companies should ensure the monitoring and regular review of their credit policy and the allowance of cash discounts should be minimized as much as possible.
Keywords: Commercial Bank, Credit Management, Liquidity Position, Profitability, Regression