AN EMPIRICAL STUDY ON THE PERFORMANCE EVALUATION OF PUBLIC SECTOR BANKS IN INDIA AVNEET KAUR Assistant professor Department of management,

GNIMT Ludhiana, Punja International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 11, November 2012, ISSN 2277 3622 Online available at www.indianresearchjournals.com 117 This paper evaluated the performance of PUBLIC SECTOR BANKS IN INDIA .The objective of this study is examine to the income and expenditure pattern, profitability, non performing asset. For this objective the researcher has used GROWTH RATE, COMPOUND GROWTH RATE, CO-EFFICIENT OF CORRELATION, RATIO ANALYSIS AND MEDIAN TEST as a tool for the measuring the performance evaluation of the PSCB .This study revealed that the growth rate and compound growth rate of PSCB in India is 85% and 16.1% respectively. The difference between the interest received and paid is spread. Median test reveald that there is no significant difference between the profitability of PSBC and SBCS in India. The study evaluated that there is high positive correlation between the profitability and interest earned, profitability and interest paid, profitability and operating expenses and profitability and other income of PSCBs in India. There is no significant difference between the growth rates, total income, total expenditure and net profit of PSCBs and SBCs in India.

THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE Samy Ben Naceur ERF Research Fellow Department of Finance Universit Libre de Tunis Avenue Khreddine Pacha, 1002 Tunis Email : sbennaceur@eudoramail This paper investigates the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 period. We use capital ratio, overhead, loan and liquidity ratios as proxies for internal indicators. Meanwhile macro-economic measures and financial structure indicators are used as external factors. For this study Two measures of performance are used in the study: the net interest margin (NIM) and the return of assets (ROA). The NIM variable is defined as the net interest income divided by total assets. ROA is a ratio computed by dividing the net income over total assets. ROA

measures the profit earned per dollar of assets and reflect how well bank management use the banks real investments resources to generate profits while NIM is focused on the profit earned on interest activities per dollar of assets and reflect how well bank management use the banks real investments resources to generate profits while NIM is focused on the profit earned on interest activities. The study indicate High net interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, , and with large overheads. Other important internal determinants of banks interest margins bank loans which have a positive and significant impact. The size has mostly negative and significant coefficients on the net interest margins. This latter result may simply reflect scale inefficiencies. , the paper finds that the macro-economic indicators such inflation and growth rates have no impact on banks interest margins and profitability. Turning to financial structure and its impact on banks interest margin and profitability, we find that concentration is less beneficial to the Tunisian commercial banks than competition. Stock market development has a positive effect on bank profitability. This reflects the complementarities between bank and stock market growth. We have found the disintermediation of the Tunisian financial system is favourable to the banking sector profitability.

Efficiency and Performance Evaluation of European Cooperative Banks Michael Doumpos, Constantin Zopounidis Technical University of Crete Dept. of Production Engineering and Management Financial Engineering Laboratory University Campus, 73100 Chania, Greece FINANCIAL ENGINEERING LABORATORY Technical University of Crete Efficiency and Performance Evaluation of European Cooperative Banks Working Paper 2012.05 April 2012 In this research paper, integrated approach is employed using DATA ENVELOPMENT ANALYSIS (charnes, cooper, & rhoder, 1978) and MULTICRITERIA EVALUATION methodology. Banks from Germany , France , Italy

The Performance of Regional Rural Banks (RRBs) in India:Has Past Anything to Suggest for Future? Biswa Swarup Mishra

Bank of India Occasional Papers Vol. 27, No. 1 and 2, Summer and Monsoon 2006 This study attempt to examine whether the problems associated with the RRBs are specific to certain sponsor banks or States in which they operate. On this base all the RRBs were categorised either as profit making or loss making.Under this study 150 RRBs falling in the profit making category and rest 46 as loss making. The exploratory analysis revealed that the problem of the loss making RRBs is neither confined to some specific States nor to a group of sponsor banks.The measures the performance of RRB, net income as a percentage to total assets is indicator of evaluation. It is measures how profitability and efficiency. The RRB is making use of total assets.GMM estimation results show that the loan portfolio management for the profit making RRBs in an area of concern. Investment contribute positively to the financial performance of the profit making RRBs, and negative performance of loss making RRBs. The sponsor bank contribute positively to the financial health of RRBs, the sponsor banks plaged aproactive roie, especially in their investment portfolio management. The performance of RRBs in India is -111.

Performance Evaluation of Urban Cooperative Banks In India Dr.K.V.S.N JAWAHAR BABU Principal KMM Institute of Technology & Science Tirupati Urban co-operative banks (UCBs) are one of the vital segments of the banking industry of India. They essentially cater to the credit needs of persons of small means. Cooperative Banks are organized and managed on the principals of co-operation, self-help, and mutual help. These have been playing imperative role in Indian financial system with broad network in both urban and rural areas. Co-operative sector plays a very important role in fulfilling the directive principles and the objectives of Five Year Plans. The cooperative sector seeks to remedy the economic inequality and evils of concentration of income and wealth and thereby prevents the exploitation of the weaker sections by the stronger. Co-operation is a noble ideology and it aims at establishing a just civilized society. It lays the road to peace and abundance of wealth, both material and moral for all the citizens. large number of banks have shown discernible signs of weakness. The operational efficiency is unsatisfactory and characterized by low profitability, ever growing non-performing assets (NPA) and relatively low capital base. Also urban cooperative banks have not been able to service the growing credit requirements of clients or the newer demands for loans in the field of personal finance. In the interest of healthy competition, the urban cooperative banks should be encouraged to grow. Thus a few bad eggs should not curb the growth of a key banking entity.

HONG- KONG Monatory fund HONG- KONG This paper develops a model to identify the major determinants of a banks profit, and the general level of profitability of a banking market. It found that in Hong Kongs case, market structure, such as market concentration and market shares of banks, is not a major contributory factor. Cost efficiency of banks, which measures the ability of banks to optimise their input mix for producing outputs, is a major determinant of banks profitability. It menace larger bank can offer service at lower price to comparison of smaller banks. So larger bank earn more profit than smaller bank. Cost efficiency is positively correlated with bank profit and negative with loan prices. So this research paper suggests that bank with a lower production cost may earn higher profit through optimizing the input mix to produce output. Empirical results also indicate that banks with a loan portfolio of lower Credit quality earn less profits, probably due to higher operational costs relating to Credit risk and loan loss management. Loan prices are observed to be sensitive to banks risk attitude. Aggressive banks may be more likely to participate in markets with higher risks, where higher spreads are charged. In addition, banks profitability and loan spreads are in general positively correlated with macroeconomic environments.

PERFORMANCE EVALUATION AND CRITICISM OF THE WORLD BANK CASE OF TURKEY By Ergul Haliscelik1 The World Bank Group is composed of 5 closely associated institutions which have different missions and specialize in different aspects of development. But they use their comparative advantages to work collaboratively toward the same overarching goal of poverty reduction. The term "World Bank" refers specifically to the IBRD and IDA and mostly it is used for only IBRD. The Bank has supported important projects and government programmes in order to ensure economical and social improvement of the developing countries since it was founded. The mission of the Bank has transformed in order to accommodate with world conjuncture which is varied throughout time. Nowadays, there are serious criticisms for the World Bank that has a mission of working for a world free of poverty Turkey became a member of The World Bank in the 1947 and the relationship has reached up today by solidifying. In Turkeys participation process to European Union, The Banks aids continued and coordinated works with IMF to provide economic stability has accelerated. In this study I will examine structure,

activities, mission and performance of the World Bank, types of funds and their sectoralregional distributions, relations with member countries, financial sources and phases (project cycle) of Bank financed projects. After that, I will evaluate World Bank financed projects and its effects in Turkey by examining Turkey-WB relations. I will give my personal findings, criticisms and recommendations on these issues.

RISK-ADJUSTED PERFORMANCE MEASURES AT BANK HOLDING COMPANIES WITH SECTION 20 SUBSIDIARIES This paper examines risk-adjusted performance measures in banking, which are used as a guide for efficient asset allocation, performance evaluation, and capital structure decisions in complex, multidivisional financial institutions. Traditional measures of performance are contrasted with the portfolio-based risk-adjusted measures using a unique detailed micro data set for a sample of domestic bank holding companies (BHCs) that engaged in both commercial banking and investment banking activities between 1990 and 1999. This paper finds evidence that traditional stand-alone performance measures can lead to results substantially different from those of the portfolio models. This study also examines BHCs optimal portfolios consisting of traditional and nontraditional banking activities derived from the efficient frontiers. These results show that there are gains from diversification as indicated by the composition of optimal portfolios.

The Determinants of Commercial Bank Profitability in Sub-Saharan Africa Valentina Flamini, Calvin McDonald, and Liliana Schumacher IMF Working Paper African Department The Determinants of Commercial Bank Profitability in Sub-Saharan Africa Prepared by Valentina Flamini, Calvin McDonald, and Liliana Schumacher1 January 2009 This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. We find that apart from credit risk, higher returns on assets are associated with larger bank size, activity diversification, and private ownership. Bank returns are affected by macroeconomic variables, as inflation and stable output growth suggesting that macroeconomic policies that promote low inflation and stable output growth does boost credit expansion. The results indicate ROA & ROE positive correlation with profitability. The test of Granger causes return with negative co-efficient. The study is find that credit risk has significant effect on profitability. Market power has no direct effect on bank profitability. Macroeconomic variables in particular inflation and

output growth are significantly affected on bank profitability. The study gives some support to a policy of imposing higher capital requirements in the region in order to strengthen financial stability. Bank Performance and Regional Economic Growth: Evidence of a Regional Credit Channel Katherine A. Samolyk Working Pauer 9204 February 1992 This paper examines the relationship between bank performance and economic growth at the state level. We develop a regional credit view to explain how, due to information costs, regional banking conditions can influence local economic activity by affecting a region's ability to fund local investments. The model suggests that local banking-sector problems may constrain economic activity in financially distressed regions, whereas no such link need be evident in financially sound regions. We test the empirical relevance of this credit view for the 1983-1990 period using state-level data and find evidence of a regional financial channel to output. Specifically, local banking-sector conditions explain more of real personal income growth in states whose share of nonperforrning loans is above the national share.

Identification of Linkage Between Strategic Group and Performance of Indian Commercial Banks: A Combined Approach using DEA and Co-Plot Prithwiraj Nath XLRI Jamshedpur. India. prithwiraj@xlri.ac.in Avinandan Mukherjee Nanyang Technological University. Singapore Aavinandan@ntu.edu.sg Manabendranath Pal Indian Institute of Management Calcutta. India mnp@iimcal.ac.in This paper examine the linkage between strategic grouping and performance of the Indian banking sector. Strategic grouping and performance were identified using published financial information for all public sector banks. Grouping of Indian public sector banks following comparable financial strategy with similar asset quality, operational efficiency and profitability was operationalized using the graphical display method of

Co-plot which traditional multivariate statistical method and non parametric test Data Envelopment Analysis is linear programming technique for measuring relative efficiency for set of homogeneous decision making units. This study identifying strategic groups within 27 Indian Public Sector Banks & one year comparison. The efficiency profitability matrix indicated that there is a positive association between two strategic group identified with co-plot display proved to be an excellent discriminator among industry performers. There is found that positive association between strategic grouping and firm performance. This provide guidelines to Indian banks to their position in the largest market by knowing their competitors better take long term strategic focus to utilize their own resources and offer a better custom service. This study also help banks to take appropriate decisions on strategic marketing restructuring, branch closures or downsizing.

Evaluation of European Cooperative Banks Michael Doumpos, Constantin Zopounidis Technical University of Crete Dept. of Production Engineering and Management Financial Engineering Laboratory University Campus, 73100 Chania, Greece Cooperative banks play an important role in the European banking system. This paper presents an evaluation of the efficiency and performance of a European cooperative banks. For this purpose an integrated approach is employed using both data envelopment analysis as well as a multicriteria evaluation thodology. Through data envelopment analysis the efficiency of the banks is evaluated under both the profit and the intermediation roach, while controlling for the effect of different country characteristics. The multicriteria evaluation process enables the comparison of all banks in a common setting. The data set involves banks from Germany, France, Italy, Spain, and Austria over the period 20052010. Evaluating the Financial Performance of Bank Branches Jess T. Pastor Voie du Roman Pays, 34 03202 Elche (Alicante), SPAIN C. A. Knox Lovell Centro de Investigacin Operativa Department of Economics CORE, Universit Catholique de Louvain Universidad Miguel Hernndez University of Georgia Athens, GA 30602, USA Henry Tulkens* B-1348 Louvain-la-Neuve, BELGIUM

Global Journal of Management And Business Research Volume 11 Issue 1 Type: Double Blind Peer Reviewed International Research Journal The research paper examine the financial performance of most of the branch offices of a large European savings bank for a recent accounting period. We employ a Complementary pair of nonparametric techniques DEA & FDH evaluated their financial performance, in terms of their ability to conserve on the expenses they incur in building their customer bases and providing customer services. We find variation in the ability of branch offices to perform this task, and agreement on the identity of the laggard branches. We then employ parametric techniques to determine that the list of indicators on which their financial performance is evaluated can be reduced without statistically significant loss of information to bank management. Both findings suggest ways in which the bank can increase the profitability of its branch network.

Characteristic Determinants of Islamic Banking Profitability M. Kabir Hassan, Ph.D. Professor of Finance Department of Economics and Finance University of New Orleans New Orleans, LA 70148 Email: mhassan@uno.edu Abdel-Hameed M. Bashir, Ph.D. Senior Economist Economic Policy and Strategic Planning Division Islamic Development Bank P.O. Box 9201, Jeddah 21413, Saudi Arabia Email: ambashir@isdb. The paper indicate bank characteristics and the overall financial environment affect the performance of Islamic banks. Utilizing bank level data, the study examines the performance indicators of Islamic banks worldwide during 1994-2001. A variety of internal and external banking characteristics were used to predict profitability and efficiency. In general, our analysis of determinants of Islamic bank profitability confirms previous findings. Controlling for macroeconomic environment, financial market structure, and taxation, the results indicate that high capital and loan-to-asset ratios lead to higher profitability. Everything remaining equal, the regression results show that implicit and explicit taxes affect the bank performance measuring negatively while favorable macroeconomic conditions impact performance measures positively. Surprisingly, the results indicate a strong positive correlation between profitability and overhead.

BANK OF GREECE BANK-SPECIFIC, INDUSTRY-SPECIFIC BANK AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY Panayiotis P. Athanasoglou Bank of Greece Sophocles N. Brissimis Bank of Greece and University of Piraeus Matthaios D. Delis Athens University of Economics and Business No. 25 June 2005 The object of this study is to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis. To account for profit persistence, we apply a Generalized method of moment (GMM) technique to a panel of Greek banks that covers the period 1985-2001. The estimation results show that profitability persists to a moderate extent, indicating that departures from perfectly competitive market structures may not be that large. All bank-specific determinants, with the exception of size, affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the SCP hypothesis. Finally, the business cycle has a positive, albeit asymmetric effect on bank profitability, being cycle has a positive, albeit asymmetric effect on bank profitability, being significant only in the upper phase of the cycle. Performance evaluation of pre- and post nationalization of the banking sector in Pakistan: An application of CAMEL model Amir Hussain Shar, Muneer Ali Shah and Hajan Jamali http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM10.261 ISSN 1993-8233 2011 Academic Journals Full Length Research Paper This research study is based on the nationalization and de-nationalization of the banking industry in Pakistan. An effort has been made to analyze and evaluate the performance and efficiency of the banking sector using CAMEL parameters. It covers the period of pre- and post- nationalization of the state owned and Commercial owned banks of Pakistan. Through the utilization of this model, it has been explored that the position of banks under study are sound and satisfactory with regards to capital adequacy, assets quality, management capabilities, earnings and liquidity.

A MULTIPLE CRITERIA FRAMEWORK TO EVALUATE BANK BRANCH POTENTIAL ATTRACTIVENESS Fernando A. F. Ferreira Ronald W. Spahr Srgio P. Santos Paulo M. M. Rodrigues fernando.ferreira@esg.ipsantarem.pt, rspahr@memphis.edu, ssantos@ualg.pt, pmrodrigues@bportugal.pt, fernando.ferreira@memphis.edu 1. School of Management and Technology, Polytechnic Institute of Santarm, PORTUGAL 2. Fogelman College of Business and Economics, University of Memphis, USA 3. Faculty of Economics, University of Algarve, PORTUGAL 4. Economics and Research Department, Banco de Portugal, PORTUGAL 5. Faculty of Economics, Universidade Nova de Lisboa, PORTUGAL 6. CASEE Centre for Advanced Studies in Economics and Econometrics, PORTUGAL

Remarkable progress has occurred over the years in the performance evaluation of bank branches. Even though financial measures are usually considered the most important in assessing branch viability, we posit that insufficient attention has been given to other factors that affect the branches potential profitability and attractiveness. Based on the integrated used of cognitive maps and MCDA techniques, we propose a framework that adds value to the way that potential attractiveness criteria to assess bank branches are selected and to the way that the trade-offs between those criteria are obtained. This framework is the result of a process involving several directors from the five largest banks operating in Portugal, and follows a constructivist approach. Our findings suggest that the use of cognitive maps systematically identifies previously omitted criteria that may assess potential attractiveness. The use of MCDA techniques may clarify and add transparency to the way trade-offs are dealt with. Advantages and disadvantages of the proposed framework are also discussed.

Financial Performance of Palestinian Commercial Banks Akram Alkhatib

Graduate student Finance at Birzeit University Palestine Economics Law and Institutions Scuola Superiore Studi Pavia IUSS Italy International Journal of Business and Social Science Vol. 3 No. 3; February 2012 175 The object of this is study is to empirically examine the financial performance of five Palestinian commercial banks listed on Palestine securities exchange (PEX). In this paper, Financial performance has been measured by using three indicators; Internal based performance measured by Return on Assets, Market-based performance measured by Tobins Q model (Price / Book value of Equity) and Economicbased performance measured by Economic Value add. The study employed the correlation and multiple regression analysis of annual time series data from 2005-2010 to capture the impact of bank size, credit risk, operational efficiency and asset management on financial performance measured by the three indicators, and to create a good-fit regression model to predict the future financial performance of these banks. The study rejected the hypothesis claiming that there exist statistically insignificant impact of bank size, credit risk, operational efficiency and asset management on financial performance of Palestinian commercial banks Monitoring Bank Performance in the Presence of Risk Mircea Epure Department of Economics and Business Universitat Pompeu Fabra and Barcelona GSE Ramon Trias Fargas, 25-27, E-08005 Barcelona, Spain mircea.epure@upf.edu Esteban Lafuente Department of Management Universitat Politcnica de Catalunya (Barcelona Tech) EPSEB, Av. Gregorio Maran, 44-50, E-08028 Barcelona, Spain esteban.lafuente@upc.edu First version: March 2012. This version: March 2013 This paper proposes a tool for monitoring bank performance that integrates credit risk in efficiency analyses. Building on existing efficiency measures, our model is adapted to correctly reflect the real banking technology. Asessing efficiency and accounting performance and by testing the impact of risk on these different measures. Also, we examine performance changes around executive turnover events. The application considers a unique dataset of Costa Rican banks during 1998-2007. Results reveal that performance improvements follow regulatory changes and that risk explains differences in performance. Non-performing loans negatively affect efficiency and return on assets, whereas the capital adequacy ratio positively affects the net interest margin. This

supports that incurring monitoring costs and having higher levels of capitalisation may enhance performance. Finally, results confirm that appointing CEOs from outside the bank significantly improves performance, thus suggesting the potential benefits of new organisational practices. Privatization, Performance, and Efficiency: A Study of Indian Banks Milind Sathye Enhancing efficiency and performance of public sector banks (PSBs) is a key objective of economic reforms in many countries including India. It is believed that private ownership helps improve efficiency and performance. Accordingly, the Indian government started diluting its equity in PSBs from early 1990s in a phased manner. International l evidence on impact of privatization is mixed. The present study, thus, fills an important gap. The data required for the study were obtained from Performance Highlights of Banks, a publication of the Indian Banks Association. The author could readily obtain publications for five years 1998-2002; his analysis .The financial performance of the banks was measured using the standard financial performance measures such as return on assets. The efficiency of banks was measured using accounting ratios, e.g., deposits per employee. Two main approaches are generally used to evaluate the impact of privatization on firm performance: Synchronic approach in which the performance of state-owned firms is compared with the firms that were privatized or with the firms that were already in private ownership. Historical approach, in which ex-ante and ex-post privatization performance of the same enterprise is compared. Given that the data are available for only five years, the author uses the synchronic approach. Since the dataset is not large enough to allow the use of more robust multivariate statistical procedures, he confines himself to the use of the difference of means test. This study reveals the Financial performance of partially privatized banks and their efficiency were significantly higher than that of the fully public banks. In the matter of quality of advances significant difference was not found in these two groups. Of course, there is no quick fix for this problem. Partially privatized banks also seem to be catching up fast with fully private banks as no significant difference was found in financial performance and efficiency between them. On comparing the strategies of privatization in India with the other countries, India was found to adopt the strategy of initial public offerings like Poland. This strategy failed in Poland but seems to have succeeded in India. Gradual privatization and well-developed financial markets seem to have contributed to Indian success.

Risk Management Practices and Financial Performance of Islamic Banks: Malaysian Evidence Noraini Mohd Ariffin1 Salina Hj. Kassim2

International Conference on Islamic Economics and Finance 1 This study aims to analyse the relationship between risk management practices and financial performance in the Islamic banks in Malaysia. In achieving this objective, the study assesses the current risk management practices of the Islamic banks and links them with the banks financial performance. The study uses both the primary (survey questionnaires) and secondary data (annual reports). The results of the study shed some lights on the current risk management practices of the Islamic banks in Malaysia. By assessing their current risk management practices and linking them with financial performance, the study hopes to contribute in terms of recommending strategies to strengthen the risk management practices of the Islamic banks so as to increase the overall competitiveness in the Islamic banking industry

Financial Inclusion and Performance of Rural Co-operative Banks in Gujarat Tejani Rachana Singhania University, Rajasthan, India Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol 2, No 6, 2011 40 | P a g e In an Index of Financial Inclusion, India has been ranked 50 out of 100 countries. Only 34% of the Indias population has access to basic banking services. The objective of the paper is to study financial inclusion in rural areas, reasons for low inclusion, satisfaction level of the rural people toward banking services and to assess the performance of the banks which are working in the rural areas which mainly include the co operative banks and regional rural banks. Structured questionnaire designed on the basis of literature review was used to collect data from 200 people residing in Ambasan, Jotana and Khadalpur villages of Gujarat. The paper first describes in detail the financial inclusion status in India and Gujarat followed with a review of scenario at the global level. The third section analyses the data with the help of statistical test and Tabulation followed with the discussion of analysis, recommendations and conclusion indicating that there is lot of opportunity for the commercial banks to explore the rural unbanked areas. Though Regional Rural Banks (RRBs) and Primary Agriculture Credit Societies (PACS) have good coverage but most of them are running into losses. Commercial banks should seize this opportunity rather than looking at it as a social obligation. Assessing the Performance of Islamic Banks: Some Evidence from the Middle East Abdel-Hameed M. Bashir Grambling State University E-mail: Bashirah@alpha0.gram.edu

African Review of Economics and Finance, Vol. 2, No. 1, Dec 2010 JEL Codes: G21, G24, G15 The study examines the determinants of Islamic banks performance across eight Middle Eastern countries between 1993 and 1998. A variety of internal and external banking characteristics were used to predict profitability and efficiency. In general, our analysis of determinants of Islamic bank profitability confirms previous findings. Controlling for macroeconomic environment, financial market structure, and taxation, the results indicate that high leverage and large loans to asset ratios lead to higher profitability. The results also indicate that foreign-owned banks are more profitable than their domestic counterparts. Everything remaining equal, there is evidence that implicit and explicit taxes affect the bank performance measures negatively. Furthermore, favorable macroeconomic conditions impact performance measures positively. Our results also show that stock markets are complementary to bank financing A financial Ratio Analysis of Commercial Bank Performance in South Africa Mabwe Kumbirai and Robert Webb Journal compilation 2010 African Centre for Economics and Finance. Published by Print Services, Rhodes University, P.O.Box 94, Grahamstown, South Africa This paper investigates the performance of South Africas commercial banking sector for the period 2005- 2009. Financial ratios are employed to measure the profitability, liquidity and credit quality performance of five large South African based commercial banks. The study found that overall bank performance increased considerably in the first two years of the analysis. A significant change in trend is noticed at the onset of the global financial crisis in 2007, reaching its peak during 2008-2009. This resulted in falling profitability, low liquidity and deteriorating credit quality in the South African Banking sector. The intellectual capital performance of the Indian banking sector G. Barathi Kamath, ICFAI Business School, Nirlon Complex, Goregaon, Mumbai, India Journal of Intellectual Capital, Vol. 8 Iss: 1, pp.96 - 123 ISSN: 1469-1930, Subject Area: Information and Knowledge Management The paper seeks to estimate and analyze the Value Added Intellectual Coefficient (VAIC) for measuring the value-based performance of the Indian banking sector for a period of five years from 2000 to 2004.The VAIC method is applied in order to analyze the data of Indian banks for the five-year period. The intellectual or human

capital (HC) and physical capital (CA) of the Indian banking sector is analysed and their impact on the banks' value-based performance is discussed The study confirms the existence of vast differences in the performance of Indian banks in different segments, and there is also an improvement in the overall performance over the study period. There is an evident bias in favour of the performance of foreign banks compared with domestic banks. Research limitations/implications All 98 scheduled commercial banks are studied as per the information provided by the Reserve Bank of India (RBI)/India's Apex bank. Regional rural banks (RRBs), a segment of the indian banking sector, are not dealt with in the study since their number is large (more than 200), but they contribute only 3 percent of the market of Indian banks. This paper is a landmark in Indian banking history as it approaches performance measurement with a new dimension. The paper has strong theoretical foundations, which have a proven record and applications. The methodology adopted has been research tested. Domestic banks in India are provided with a new dimension to understand and evaluate their performance and benchmark it with global standards. The paper also has policy implications, as it reflects the lop-sided growth of a few sections in the Indian banking segment. The paper represents a pioneering and seminal attempt to understand the implications of the business performance of the Indian banking sector from an intellectual resource perspective.

Performance measurement of Taiwan's commercial banks Chien-Ta Ho, Department of International Trade, Lan-Yang Institute of Technology, Taiwan Dauw-Song Zhu, Department of Business Administration, National Don-Hwa University, Taiwan International Journal of Productivity and Performance Management Vol. 53 Iss: 5, pp.425 434 ISSN: 1741-0401: 2004, Subject Area: Performance Management and Measurement Most studies concerning company performance evaluation focus merely on operational efficiency. Operational effectiveness, however, which might directly influence the survival of a company, is usually ignored. As a result, this paper presents a study which uses an innovative two-stage data envelopment analysis model that separates efficiency and effectiveness to evaluate the performance of 41 listed corporations of the banking industry in Taiwan. The empirical result of this paper is that a company with better efficiency does not always mean that it has better effectiveness. There is no apparent correlation between these two indicators.

A study of efficiency evaluation in Taiwans banks Tser-Yieth Chen,

Chung-Hua Institution for Economic Research, Taipei, Taiwan Tsai-Lien Yeh, Hsing-Wu College of Commerce, Taipei, Taiwan International Journal of Service Industry Management Vol. 9 Iss: 5, pp.402 - 415 ISSN: 0956-4233 : 1990, Subject Area: Industry and Public Sector Management The main contribution of this paper is empirical in nature. We use data envelopment analysis to evaluate the relative efficiency of 34 commercial banks in Taiwan. Fifteen banks are identified as efficient ones and they are divided into four sub-groups. Conversely, 19 banks are attributed as inefficient ones and the slack analysis are followed. The inefficient banks can effectively promote resource utilization efficiency by better handling their labour and capital operating efficiency and enlarging bank investment function. In addition, we compare the data envelopment analysis results to the financial ratios and show that a consistent effect cannot be obtained. This is to say that we cannot derive which bank has a higher performance from financial ratio analysis only. Performance evaluation and risk analysis of online banking service Dexiang Wu, School of Business, University of Science and Technology of China, Hefei, People's Republic of China Industrial Engineering, University of Toronto, Toronto, Canada, Desheng Dash Wu, School of Science and Engineering, Reykjavik University, Reykjavk, Iceland RiskLab, University of Toronto, Toronto, Canada Emwrald Group Publishing Limited Vol. 39 Iss: 5, pp.723 - 734 ISSN: 0368-492X : 1972, Subject Area: Electrical & Electronic Engineering Online banking has attracted a great deal of attention from various bank stakeholder such as bankers, financial service particulars, and regulation. The purpose of this paper is to analyse the online banking service performance of giant US and UK banks. Risk analysis is also conducted. This paper connects the principal component analysis(PCA) method with the data envelopment analysis(DEA) method to estimate the online banking performance. Data are collected from 2007 annual reports of giant banks in the USA and the UK including both financial and non-financial variables. Most giant banks are performing well based on DEA analysis. Employees turn out to be a key variable that contribute most to banks revenue. Different DEA models can be classified into cost and online oriented models, which is consistent with existing work based on data from other nations. This paper presents a unique demonstration of using PCA and DEA for evaluation of giant banks with online banking services.