Efficiency, diversification, and performance of US banks

Khan, Abu Nahian Faisal; Hassan, M. Kabir; Maroney, Neal; Boujlil, Rhada; Ozkan, Bora

doi:10.1016/j.iref.2019.12.010

Cited by 11 publications

(10 citation statements)

References 65 publications

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“…Sarwar, Muhammad and Zaman (2020) report that diversification of Pakistani banks is associated with bank margin. Khan, Hassan, Maroney, Boujlil and Ozkan (2020) examines efficiency and performance of the US banks in diversifying their operations into various financial services. They report a diversification premium implying bank diversification generates an excess value to banks although the impact on efficiency of bank is mixed.…”

Section: Impact Of Diversification On Performance Of Banksmentioning

confidence: 99%

“…Baele, De Jonghe and Vander Vennet (2007) argue that financial conglomerates can use the information accessed through lending relations to provide other financial services more efficiently, implying that larger banks with better performance might be associated with diversity of their operations. Khan, Hassan, Maroney, Boujlil and Ozkan (2020) examines effects of efficiency and excess value of banks on diversification for publicly traded banks around the world over the period of 2002-2010. They shows that the efficiency and excess value do not cause banks to diversify their businesses.…”

Section: Impact Of Performance On Diversification Of Banksmentioning

confidence: 99%

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Diversification and Performance of Sri Lankan Banks

Pisedtasalasai

Edirisuriya

2020

JAFEB

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The purpose of this study is to investigate the relationship between diversification and the performance of commercial banks, while taking into account the ownership status of these banks in Sri Lanka. Two-way relationship between diversification and performance was scrutinised by employing the 2SLS regression technique. The data consists of 17 registered commercial bank in Sri Lanka between 2001-2016. The results show a strong significant bidirectional relationship exists between diversification and bank performance. The performance of Sri Lankan banks has been significantly improved by their diversification attempts. In other words, the banks whose incomes are more diversified from various sources, they are more profitable and successful in long-term. On the other hands, the results also reveal that bank performance positively and significantly affects diversification. This finding suggests that the banks with great profitability are more capable in diversify their operations. Furthermore, private sector banks, both listed and unlisted, are significantly more diversified than their government-owned counterparts, but their performance is not necessarily superior to government-owned banks. This may be the result of the economic environment and the perception of the public, which have allowed the government-owned banks to entertain significant market power over the private sector banks in the country.

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Section: Impact Of Diversification On Performance Of Banksmentioning

confidence: 99%

Section: Impact Of Performance On Diversification Of Banksmentioning

confidence: 99%

Diversification and Performance of Sri Lankan Banks

Pisedtasalasai

Edirisuriya

2020

JAFEB

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“…With reference to existing studies, bank size (lnsize), capital adequacy ratio (CAR), business diversification (HHI), and liquidity creation (LC) are selected in this paper to control for the effect of bank characteristics [ [44] , [45] , [46] , [47] ]. Bank liquidity creation level (LC) is measured by “bank overall liquidity creation/total assets”.…”

Section: Data and Model Designmentioning

confidence: 99%

How does digital transformation affect the profitability of rural commercial banks?

Chao,

Zhou,

Yang

2024

Heliyon

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“…One of the ways through which these ideals can be achieved is by bringing moral values into society in all facets of human life, including social, political and economic endeavors. This will help humans get rid of greed and self-indulgence, which has made them absorbed in self-satisfaction and accumulation of wealth as the measure of success and achievement [ 43 ]. To contribute towards the creation of a just and equitable society, the financial system must promote the fair distribution of income besides being a strong and stable system that can be relied upon.…”

Section: Literature Review and Research Frameworkmentioning

confidence: 99%

The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

Rabbani

Ali

Rahiman

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

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Novel Coronavirus, also known as COVID-19, is a health emergency that is having an ever-growing impact on the global economy. COVID-19 has caused economic disruption at an unprecedented speed and scale. The economic costs it will bring to society can only be measured in times to come. Millions of people across the globe have already become unemployed, and similarly, millions of businesses have either shut down or are on the verge of collapse. It is a great challenge for policymakers to minimize the economic impact of COVID-19 and put the economy on a growth trajectory once again. Unfortunately, there is so far no country in the world that can be viewed as a role model for its economic response to the COVID-19 pandemic. The present study proposes Islamic finance as a potential tool to help affected economies safely pass through the economic crisis resulting from the pandemic. This study identifies a four-stage COVID-19 model and proposes ten innovative Islamic financial services for each stage of the pandemic. In addition, it analyzes how these services can be effectively utilized at different stages to overcome the economic damage caused by the pandemic.

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Efficiency, diversification, and performance of US banks

Cited by 11 publications

References 65 publications

Diversification and Performance of Sri Lankan Banks

Diversification and Performance of Sri Lankan Banks

How does digital transformation affect the profitability of rural commercial banks?

The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

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