Explore the vast range of titles available.

This study explores the impact of environmental, social and governance (ESG) performance on corporate profitability in Chinese commercial banks from 2012 to 2022, examining how inherent differences across bank types moderate this relationship.Using two-way fixed effects, 2SLS (instrumental variables), simultaneity tests and system GMM, the study analyzes the effects of ESG on profitability while addressing endogeneity. To capture heterogeneity, the sample is stratified by ownership (state-owned vs non-state-owned), governance (joint-stock vs non-joint-stock) and location (urban vs rural).The results show that ESG performance positively impacts profitability in both rural and urban commercial banks, with governance performance negatively affecting urban banks. ESG negatively influences profitability in state-owned banks, whereas non-state-owned banks benefit from positive ESG performance. Environmental performance positively affects profitability in both types of banks, but governance has a negative impact. ESG boosts profitability in joint-stock banks but detracts from it in non-joint-stock banks. Social activities positively affect profitability across both bank types, while environmental activities are insignificant. Governance activities enhance profitability in joint-stock banks but reduce it in non-joint-stock banks.Policymakers should create tiered ESG regulations, incentivizing market-driven banks while subsidizing state-owned banks' compliance costs. Bank managers should tailor ESG investments, focusing on environmental and social initiatives based on location and investors must evaluate ESG scores contextually.This study provides a granular analysis of ESG-profitability linkages across China's heterogeneous banking landscape, highlighting how institutional characteristics such as ownership, governance structure and geographic focus shape the financial implications of ESG.

The paper aims to investigate the impact of CAMEL components on the financial performance of commercial banks in Vietnam. Three econometric models are built using four CAMEL’s crucial indicators as independent variables (capital adequacy, asset quality, management effectiveness, bank liquidity) and return on assets (ROA), return on equity (ROE), and net interest margin (NIM) as proxies for commercial banks’ financial performance – dependent variables. The research sample includes 31 Vietnamese commercial banks over the 6-year period, from 2013 to 2018. The results show a better fit of the fixed effects model (FEM) in terms of the research methodology compared to the ordinary least squares (OLS) and random effects model (REM). It was found that capital adequacy, asset quality, liquidity and management efficiency affect the performance of Vietnamese commercial banks. Acknowledgement This research is funded by National Economics University (NEU), Hanoi, Vietnam. The authors thank anonymous referees for their contributions and the NEU for funding this research.

The main objective of this study is to examine the determinants of farm investment in Somalia using quarterly time-series data from 2015 to 2021. The study selected financing assets (FA), farm output (FO), credit for commercial banks (CCB), and saving (S) as macroeconomic variables. The augmented Dickey–Fuller (ADF) test was employed to evaluate the stationarity of the variables, and the Granger causality test was used to assess the causal relationship between the study variables. It was found that all variables became stationary at the second difference, with a trend for each of the three critical levels of 1%, 5%, and 10%. The Granger causality test indicates a unidirectional causal connection between farm investment, farm output, financial assets for commercial banks, savings for commercial banks, and loans for commercial banks in Somalia. The vector autoregressive (VAR) estimation revealed that the coefficient of determination explains 98% of the model, and the ordinary least squares (OLS) estimation showed a highly significant P-value. The results show that financing assets and savings will increase farm output if managed effectively and efficiently. Based on the findings, the study recommends that the government focus on the overall institutional framework in Somalia to facilitate economic growth, poverty reduction, and sustainable development.

Bank industry plays a critical role in the economic development of China. In this paper, we develop a new two-stage data envelopment analysis approach for measuring the slacks-based efficiency of Chinese commercial banks during years 2008–2012, where the banking operation process of each bank is divided into a deposit-generation stage (division) and a deposit-utilization stage (division). In the approach, the increase of desirable outputs and the decrease of undesirable outputs are simultaneously considered in order to identify the inefficiency of a bank. Three efficiency statuses are first defined for such a system to investigate its input-output performance and divisional performances, and a full efficiency status is then defined based on these statuses. The empirical results show that the improvement of the banks’ performances during this period was mainly contributed by the improvement of deposit-utilization stage. Besides, the results also show that our approach can provide a benchmark for the intermediate measures of the two stages of an inefficient bank.

Financial innovation is of great significance to the long-term and stable development of commercial banks and the entire financial market. Reasonable and effective innovation under the current changing financial situation is of great significance to the development of the overall banking industry and financial market, but to varying degrees and Different ways of innovation often produce different results. The article uses the cloud model to comprehensively evaluate the financial innovation indicators of the five state-owned commercial banks. By taking into account the characteristics of ambiguity and randomness, and using the characteristics of the cloud, the evaluation results are more objective and authentic.

We show that the development of city commercial banks (CCBs) across China has alleviated the constraints from China's domestic financial-market inefficiency on the export activity of domestic private firms. Considering the export behavior of 260 cities between 1997 and 2012, we confirm the well-established under-performance of domestic private firms in financially more vulnerable sectors compared to foreign affiliates in China. We show that a greater number of CCB branches raises domestic private-firm exports disproportionately more in financially-dependent sectors, which is in line with improved financing conditions for these companies. This improvement in export performance appears to result from both an increase in the number of destination countries and a decline in prices. CCB development is moreover associated with a reduction in the systematic disadvantage of domestic private firms relative to foreign-owned firms in export markets resulting from their greater financial exclusion. We, however, also find that private-firm export performance has deteriorated relative to that of state-owned firms, casting doubt on the ability of CCBs to end the systematic bias of lending in favor of the state sector.

This research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Using the OLS regression method for analysis, it was found that: the interbank market helps commercial banks improve their liquidity; the larger the loan size, the higher the liquidity risk; good credit risk management has a positive impact on liquidity risk management; and long-term interest rate is negatively related to the liquidity of commercial banks. The research also makes recommendations on liquidity risk management policies to banks and policy-makers from the Government and the State Bank of Vietnam.

PurposeThe purpose of this paper is to evaluate Chinese commercial banks efficiency based on different non-performing loans in the process. Moreover, we identified the difference among different types of banks (state-owned commercial banks, joint-stock commercial banks and city commercial banks) and different operation stages (deposit producing sub-stage, profit earning sub-stage and overall stage).Design/methodology/approachAssurance region (AR) restrictions are combined with a two-stage data envelopment analysis (DEA) model. The efficiency scores of 26 Chinese commercial banks (listed banks) are analyzed by a two-stage AR-DEA model in the study period of 2013–2017.FindingsThe results show that state-owned commercial banks had better performance than joint-stock commercial banks and city commercial banks over the five-year study period. The development of Internet finance has positive impact on deposit producing sub-stage and insignificant non-homogeneity existed among the different groups in the circumstances of considering different non-performing loans.Practical implicationsThe research findings provide practical insights that help bank managers find the defects in operation process, which need to be improved.Originality/valuePrevious studies viewed non-performing loans as an integrated whole variable. The paper divides non-performing loans into three categories based on the risk and investigates the effect of different types of loans on bank efficiency scores.

PurposeBased on the resource-based view (RBV) and the signaling theory, this paper examines the effect of media reputation on financial performance as well as the moderating role of bank characteristics (risk management and financial capacities) in this relationship, using Vietnamese commercial bank data for the period 2007–2018.Design/methodology/approachWe rely on the agenda-setting theory to measure the media reputation of banks. Return on average equity (ROE) is used as a proxy of financial performance. We regress financial performance on media reputation with fixed effects to control unobserved variables. In addition, the instrumental variable (IV) method is applied to deal with the endogeneity problem. We use the change in bank logo as an IV for media reputation.FindingsWe find that media reputation has a positive effect on financial performance. This effect becomes prominent for large banks, listed banks or banks that demonstrate good risk management capacities, and is particularly strong when we control for endogeneity bias. The effect of media reputation on financial performance is transmitted through the non-performing loan (NPL) channel.Research limitations/implicationsThe research findings further endorse the positive impact of media reputation on financial performance in the low-quality institutional settings. Moreover, these findings expand the existing knowledge regarding the relationship between media reputation and financial performance by affirming two strategies which could be used to leverage the contribution of media reputation including improving banks' risk management capacities and raising financial capital.Originality/valueThis is the first known paper to examine the effect of media reputation on financial performance in commercial banks in an underdeveloped institutional setting while exploring the moderators in this relationship. This study, therefore, provides insightful implications for different bank segments in managing NPL and taking advantage of media reputation as a potential resource of financial performance.

The past decade has seen impressive developments in financial technology (FinTech) in China. As a new technology and innovative method that competes with, and also supplements, traditional financial methods, fintech has had a significant impact on traditional financial businesses and has thus challenged the role of commercial banks as credit intermediaries in the financial sector. This paper examines the potential risks that fintech brings to commercial banks in China, and collects data from 19 systemically important banks from 2011–2020 to analyze the effect of fintech development on commercial banks’ financial risks in order to achieve sustainable development in the financial sector. Using the Z value and non-performing loan ratio as the criterion variables, this study shows that the impact of fintech on the financial risks of systemically important banks demonstrates an inverted U-shaped pattern, with the financial risk increasing first and then decreasing alongside the further development of fintech. The results also show that commercial banks’ responses to fintech development has been comparatively slow. Managerial suggestions are then discussed on risk supervision for commercial banks and the financial sector in China and other emerging markets.