Journal of Corporate Finance Management and Banking System ( JCFMBS) ISSN : 2799-1059

Determining Spatial Distribution of the BSP Supervised Banks in the Philippines: A Multivariate Cluster Analysis

Vivian Sesgundo, Peter John Aranas — Mon, 01 Apr 2024 00:00:00 +0000

The goal of this study was to determine the significant variables that contribute to the number of Bangko Sentral ng Pilipinas (BSP) Supervised banks in the Philippine regions. A model that can predict the number of banks needed in the region was also presented. Spatial distribution of the banks was also analyzed. These analyses determined if the current number of banks in the region is sufficient to provide the financial services needed by the people. The ArcGIS Pro was used to perform Ordinary Least Square Regression, Global Moran’s I and Multivariate Clustering Analyses to the Regional Distribution of BSP Supervised banks in the Philippines and the categorized economic, demographic, labor market and potential market variables from the Philippine Statistics Authority (PSA) in 2020. Results of this study show that the population density, economically active population, functional literacy rate, and families’ ownership of personal computer are the significant factors, which represent every category of the independent variable, that contributed to the number of banks in the region. Using the chosen passing model, the difference between the actual and estimated number of banks was used as the indicator by which regions need more physical banks to promote financial inclusion. Regions X, CAR, and BARMM are the best locations for the future physical bank to be established. Furthermore, the results from Global Moran’s I analysis showed that there is a clustering of high number of banks in the Philippines. There were 7 clusters formed for the number of banks based on population density, economically active population, functional literacy rate, and families’ ownership of personal computer. Among these explanatory variables, population density is the greatest contributor in forming the clusters.

Impact of Soundbox by Third Party Application Providers (UPI) on Retailers, with Special Reference to Greater Chennai Corporation

Denny Jones B, Dr. M. Muruganandam — Mon, 01 Apr 2024 00:00:00 +0000

Before the advent of UPI, payments primarily relied on debit and credit cards, proving advantageous for medium-scale business retailers while disadvantaging small-scale or micro retailers using cash due to the high cost of POS machines. The introduction of the UPI digital payment system by the National Payments Corporation of India in 2016 marked a significant boon for customers and retailers of all types. Despite its benefits, some retailers hesitated due to perceived authenticity issues in receiving payments. However, since 2019, the third-party application provider Paytm revolutionized UPI adoption by proposing the installation of a soundbox. This innovative addition led to increased UPI utilization by retailers, driven by enhanced security, user-friendliness, simplified transactions, and lower monthly rental costs. This paper explores the impact and role of the soundbox post-installation by third-party application providers, examining its merits, demerits, and gauging retailers' perspectives on this transformative technology.

Investors’ Perception towards Mutual Fund

Sushmita Malla — Fri, 05 Apr 2024 00:00:00 +0000

The purpose of the study is to identify the investors’ perception toward mutual fund. The study considered Investors’ perception toward mutual fund as the dependent variable and Fund scheme, Risk & Return, Level of investors’ knowledge as dependent variable. Data for the study was collected through structured questionnaires method by using five point Likert scale. A total of 72 investors are participated in this study. This study examine the impact of Fund scheme, Risk & Return, Level of investors’ knowledge on investors’ perception. Researcher used questionnaires as a research instrument for the data collection which was analyzed using SPPS software using the tool descriptive statistics, correlation and regression. Correlation and regression analysis were used to find out the relationships and state the impact between the variable. Analyzed result revealed the investor’s level of knowledge variable has positive significant impact on Investors’ Perception in mutual fund whereas fund scheme and Risk & Return has insignificant impact on Investors’ Perception in mutual fund.

Bank Competition and Financial Stability in Nepal

Bandana Khanal — Fri, 05 Apr 2024 00:00:00 +0000

This paper examines the casual relationship between bank competition and financial stability in Nepal. The relationship between competition and financial stability in banking system can be explain by two hypothesis: The "competition-fragility" theory holds that increased bank competition weakens profit margins, undermines market power, and lowers franchise value—the continuing concern or market worth of the banks above their book values and “competition-stability” view contends that financial institution stability may benefit from competition. The study used descriptive and causal research design. The random effect panel data of 6 commercial banks of Nepal over the period of 2014-2019. All the data are obtained from NRB monthly statistic and bank annual report. The HHI and n-bank concertration ratio are used as a measure of bank competition while Z-Index and non-performing loan ratio are the proxies of financial stability. The findings confirm the"Competition-frangility" theory by showing a negative association between bank competition and financial stability in Nepal. It states that bank tends to take excessive risks when the competition level increases. It is discovered that competition in the banking industry raises credit risk and reduces capital levels. Riskier policies enhance the likelihood of increased bank bankruptcies and non-performing loan ratios, which adds to fragility and financial instability. Thus, less concentrated banking systems are prone to experiences crisis.

The Impacts of Ethical Sales Behaviour on Customer Loyalty in the Life Insurance Industry in Pakistan

Dildar Khan Jadoon, Awais Qasim, Dr. Asia Bibi — Mon, 08 Apr 2024 00:00:00 +0000

The life insurance industry in Pakistan is highly competitive, with customer loyalty playing a crucial role in long-term success. Ethical sales behaviour emerges as a key differentiator, potentially fostering trust and driving positive customer experiences. This research investigates the relationship among ethical sales behaviour, customer trust in company and trust in sales agent, which directly affect customer loyalty in the life insurance industry.

The quantitative survey targets customers of five major life insurance companies, ensuring a representative sample across diverse demographics. The questionnaires were sent to all companies customer on a random basis. The questionnaires are distributed with the help of office employee of the companies.The finding of the study shows that there is a direct and positive relation between sales agent ethical sales behaviour and customer loyalty. Furthermore, the trust of the customer in the sales agent and trust of the customer in a company has direct positive mutual relation and customer trust both affect customer loyalty. By demonstrating the tangible benefits of ethical sales behaviour, the study can encourage companies to implement and prioritize ethical practices. The identified key drivers of customer loyalty can guide training programs and performance evaluations for insurance agents, ultimately fostering a culture of ethical conduct within the industry.