– The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment, like in the case of Malaysia. A discussion on factors relating to corporate social responsibility initiatives as part of potential customers' banking selection criteria is also included., – The paper presents primary data collected by self‐administered questionnaires involving a sample of 750 respondents from four different regions in Malaysia. The Islamic banking criteria ranking as perceived by the respondents are analysed using Friedman Test. To further explore the customers' understanding of the banking criteria, an exploratory factor analysis is employed., – This study reveals that the selection of Islamic banks appears to be predominantly a combination of Islamic and financial reputation and quality service offered by the bank. Other factors perceived to be important include good social responsibility practices, convenience and product price., – The empirical evidence of this paper affects two aspects; first, Islamic banks must offer quality services while maintaining its Islamic credential and reputation; second, Islamic banks should also embrace good customers services policies to reap its potential as a strategic tool to achieve competitive advantage, enhance reputation and secure customers allegiance. This research will be of interest to both incumbent and potential entrants into this niche market., – The paper reports findings from the first nationwide study carried out in the area of Islamic banking selection criteria.

Why do Malaysian customers patronise Islamic banks

Banks are “special” financial institutions generating distinct corporate governance challenges. The present paper examines the relationship between two of the most pertinent corporate governance factors—that is, the size of the Board of Directors and the proportion of non-executive directors—and firm performance on a sample of 58 large European banks over the period 2002–2004. The empirical analysis embraces a number of bank-specific variables. Our results reveal that bank profitability is negatively related to the size of the Board of Directors, while the impact of Board composition, although positive in all models, is, in most cases, insignificant. The results are robust after controlling for firm-specific variables.

The effect of board size and composition on European bank performance

This book, from the author of the bestselling title ""Microfinance Handbook: An International and Financial Perspective"", presents a practical ""how-to"" manual for Microfinance Institutions (MFIs) to develop the capacity to become licensed and regulated to mobilize deposits from the public. It also provides information specific to regulators outlining how to appropriately license and regulate deposit-taking MFIs. This book will be invaluable to practitioners, donors, investors, and academics interested in the transformation of MFIs.

Transforming Microfinance Institutions: Providing Full Financial Services to the Poor

This study attempts to reveal the relationship between credit risk and profitability of some selected banks in Ghana. A panel data from six selected commercial banks covering the five-year period (2005-2009) was analyzed within the fixed effects framework.  In Ghana, the average lending/interest rate is about 30% - 35% per annum. From the results credit risk (non-performing loan rate, net charge-off rate, and the pre-provision profit as a percentage of net total loans and advances) has a positive and significant relationship with bank profitability. This indicates that banks in Ghana enjoy high profitability in spite of high credit risk, contrary to the normal view held in previous studies that credit risk indicators are negatively related to profitability.  Our results can be attributed to the prohibitive lending/interest rates, fees and commission (non- interest income) charged. Also, we found support for previous empirical works which depicted that bank size, bank growth and bank debt capital influence bank profitability positively and significantly. Keywords : Credit Risk, Profitability, Banks, Ghana.

/pdf/credit-risk-and-profitability-of-selected-banks-in-ghana-47u5o9yw2p.pdf

Credit Risk and Profitability of Selected Banks in Ghana

Financial fragility and natural disasters: An empirical analysis

Provides a comprehensive overview of topics dealing with the assessment, analysis, and management of financial risks in banking. The report emphasizes risk-management principles and stresses that key players in the corporate governance process are accountable for managing the different dimensions of financial risk.

Analyzing banking risk : a framework for assessing corporate governance and financial risk management

This publication aims to complement existing methodologies by establishing a comprehensive framework for the assessment of banks, not only by using financial data, but also by considering corporate governance. It argues that each of the key players in the corporate governance process (such as shareholders, directors, executive managers, and internal and external auditors) is responsible for some component of financial and operational risk management. Following a holistic overview of bank analysis in Chapter 2, the importance of banking supervision in the context of corporate governance is discussed in Chapter 3. This chapter also considers the partnership approach and the emerging framework for corporate governance and risk management, as well as the identification and allocation of tasks as part of the risk management process. The framework for risk management is further discussed in Chapters 4 through 11.

Analyzing and managing banking risk : a framework for assessing corporate governance and financial risk management

This publication aims to complement existing methodologies by establishing a comprehensive framework for the assessment of banks, not only by using financial data, but also by considering corporate governance. It argues that each of the key players in the corporate governance process (such as shareholders, directors, executive managers, and internal and external auditors) is responsible for some component of financial and operational risk management. Following a holistic overview of bank analysis in chapter two, the importance of banking supervision in the context of corporate governance is discussed in chapter three. This chapter also considers the partnership approach and the emerging framework for corporate governance and risk management, as well as the identification and allocation of tasks as part of the risk management process. The framework for risk management is further discussed in chapters four through eleven.

/pdf/analyzing-banking-risk-a-framework-for-assessing-corporate-19j0ulaz94.pdf

Hennie Van Greuning

Papers

Analyzing banking risk : a framework for assessing corporate governance and financial risk management

Analyzing and managing banking risk : a framework for assessing corporate governance and financial risk management

Analyzing Banking Risk: A Framework for Assessing Corporate Governance and Risk Management

Analyse et gestion du risque bancaire : un cadre de reference pour l'evaluation de la gouvernance d'entreprise et du risque financier

Analiza i upravljanje bankovnim rizicima : pristupi za ocjenu organizacije upravljanja rizicima i izlozenosti financijskom riziku