American Finance & Banking Review

Published by Centre for Research on Islamic Banking and Finance and Business
Print ISSN: 2576-1226
Publications
Granger Causality Test Results
Heteroskedasticity Test: ARCH
Variance Decomposition Test Results
Given the observed volatility in crude oil prices in the international oil market and the role which oil and gas play in the Nigerian economy, this paper is an attempt to investigate the impact of crude oil prices and foreign exchange rate movements on stock market prices in Nigeria. In addition, the paper examined whether there is any volatility pass-through between the dollar price of Nigerian crude oil, foreign exchange rate of the Naira and stock market prices respectively. Data employed for the study are monthly values of the Nigerian Stock Exchange (NSE) All-Share Index (ASI), Dollar price of Nigerian Crude Oil (DPO) and the Official Exchange Rate of the Naira to the US Dollar (FXR) from January, 1985 to August, 2017. The methodology adopted for the study include the ADF unit root tests, Johansen co-integration tests, the ECM technique, Granger causality tests, variance decomposition as well as the GARCH(1,1) to model the volatility relationships among the variables. Findings reveal that there is one long-run dynamic co-integrating relationship among the variables ASI, DPO and FXR while the ECM results indicate that Crude oil price (DPO) significantly impact on Stock market prices. The Granger causality test reports a bi-directional causality relationship between ASI and DPO and a unidirectional causality running from FXR to ASI. The ARCH-GARCH volatility analysis demonstrates vividly that stock market prices in the NSE exhibit ARCH effect with a significant and positive first order ARCH term. The GARCH term is also positive and significant indicating that previous month’s stock market price volatility significantly influences current stock market volatility in the NSE. In addition, findings show that the volatility of dollar price of Nigerian oil (DPO) in the world oil market is significantly transmitted to the volatility of stock market prices in Nigeria. The pass-through effect of the volatility of exchange rate (FXR) to the volatility of stock market prices is also positive and significant. These findings offer significant informational signal to policy makers, portfolio managers/advisors and the investing public in achieving optimal asset and portfolio profile.
 
This study the relationship between accounting information and the market value of quoted firms in Nigeria. The general objective was to examine if accounting information have any effect on market value of quoted firms. Cross sectional data was sourced from financial statement of 23 manufacturing firm from 2008-2017. Market value of the firms was modeled as a function of earnings per share, return on equity and dividend per share. Ordinary least square method of cointgration, unit root and granger causality test was used to determine the extent to which human resource cost affect quality of financial report. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model. The study found that the independent variables explained 79 percent variation on the market value of the quoted firms. The beta coefficient of the variables indicates return on equity; earnings per share, dividend per share have positive effect on the market value of the quoted firms. From the regression summary, the study concludes that there is significant relationship between accounting information and market value of the quoted firms. The study recommends that management of the firms should formulate dividend policy that enhances the market value of the firms. Corporate strategies should be directed toward internal and external factors that affect earnings per share.
 
Internet banking is the latest technology that has revolutionized the changes of banking and business systems around the world. However, arrival of technology has an impact on Internet banking and transforms from a traditional banking system to a very useful innovation technology. The purpose of this study is to analyze factors that have influenced users to use Internet banking in doing financial transaction. This study uses content analysis on the previous literatures. The findings showed that there were 10 main different factors which influence the adoption of internet banking by the users. This study also proved that the highest factors which consist of 2 main factors are generated from technology acceptance model (TAM). Contribution of this research are significantly helps bank to have a better understanding on factors that influence the adoption of internet banking as well as help to develop a strategy to improved internet banking services.
 
Foreign direct investment in Algeria as a percentage of GDP represented 0.9% during the last decade. The goal of this study is to assess the effect of Foreign Direct Investment on Algerian economy through an empirical analysis by applying the bounds testing ARDL and ECM-ARDL using annual data for the period 1970-2014. As far as the role of FDI is concerned, we shall try to highlight its effect that may show causal relationships to non-hydrocarbon GDP, non-hydrocarbon export, industry and employment in long run. Our estimation of an ARDL model indicates that the political and macroeconomic stability are not enough to attract FDI to help non-hydrocarbon sectors drive economic growth.
 
Mean and SD of Bank based internal components that Contribute to NPA
Lending Funds is considered as the primary function of primary function which provides financial support to various sectors such as agriculture, industry, personal loans etc., but in recent times the banks as taken a cautious stand in lending. The main reason for such an initiative is the mounting issues of non-performing assets (NPAs).A loan asset is considered as non-performing asset when it ceases to generate income for the bank. From 31st March, 2004 NPA was defined as a credit facility in respect of which the interest or installation of principal has remained past due for a specified period of time which was four quarters. NPA in public sector banks is increasing year after year and thus this is becoming a debatable topic. So considering this anglete paper is undertaken to analyze the reasons for advances becoming NPA in Public sector banks and intends to give suitable suggestions to overcome NPA.
 
This study examined the effect of ownership structure on return on assets of deposit money banks in Nigeria. The objective was to investigate the relationship between the composition of ownership structure and deposit money banks return on assets. Cross sectional data was sourced from financial statement of fifteen quoted commercial banks. Return on assets was modeled as a function of domestic ownership, ownership concentration, foreign ownership institutional ownership and management ownership. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model. The result found that ownership concentration, management ownership and institutional ownership have negative relationship with the dependent variable while private ownership and management ownership have positive relationship with the dependent variable which is return on investment. While private ownership, ownership concentration, institutional ownership and foreign ownership have positive effect on the dependent variable which is return on assets while management ownership have negative effect on the dependent variable. We recommend that regulatory authorities such as the Securities and Exchange Commission, the Nigerian investment promotion council should encourage private investors to invest into the equity shares of the commercial banks and the need for commercial banks to increase their ownership structure through public listing, right issue and other means of attracting public and institutional investors.
 
This study investigates the students‟ attitude on the introductory computer course at Bauchi Metropolitan University. Bauch State is one of the 36 States in Nigerialocated in the North East Region of the country with only Two Public Universities, ATBU and BASUG. Inboth universities it is mandatory for students to undertake introductory computer course in their first year entry to the university and this research was conductedwith the aim to find out the students attitude toward the computer course as part of the requirement to their studies. This study uses a sample of 300 undergraduate students (male=188, female=110) students. Primary data were utilized where questionnaire was employ as the tool of data collection. Computer attitude related questionnaire was developed and administered to the respondents and retrieved. Frequencies and Percentages was used to analyzed the respondents demographic information and questions asked while the chi-square X2 analysis was employ to test the stated hypothesis. The result of this study shows that students had positive attitude toward introductory computer course as the calculated chi-square X2c 0.253 which is less than the tabulated chi-square X2t of 3.841i.e. X2c < X2t therefore the study conclude that students had significant and positive attitude toward introductory computer course at Bauchi metropolitan university and we recommends that priority attention in terms of computer practical session should be given to students to increase their likeness of the computer and adequate arrangements should be made by universities to ensure students have access to computer and the internet whenever needed within the campus area and this will also mould a positive attitude for students.
 
This study tries to find the relationship among poverty inequality and growth. It also tries to connect the Karl Marx’s thoughts on functional income distribution and inequality in capitalism. Using the Household Income and Expenditure Survey of 2010 and 2016 this study attempt to figure out the relationship among them. The incidence of poverty in Bangladesh is one of topmost in this globe; about 25% of the population is living under poverty lines and 12.3% of its population is living under the extreme poverty line. The major finding of this study is poverty has reduced significantly from 2000 to 2016, which is more than 100% but in recent time poverty reduction has slowed down. Despite the accelerating economic growth, the income inequality also increasing where the rate of urban inequality exceed the rural income inequality. Slower and unequal household consumption growth makes sloth the rate of poverty reduction. Average annual consumption fell from 1.8% to 1.4% from 2010 to 2016 and poorer households experienced slower consumption growth compared to richer households.
 
Monetary policy is aimed at attaining price stability, full employment and moderate long-term interest rates in the economy based on regulatory authority priorities, prevailing economic and financial conditions. Using annualized time series data from DMBs in Nigeria and the Vector Error Correction Model (VECM) as well as the simulates generalized impulse response functions, this study assessed the dynamic interactions between bank lending and monetary policy by observing how banks’ lending patterns are influenced by changes in monetary policy over the years in Nigeria.The result revealed that bank lending responds to short run changes in monetary policy but there is no long run influence from monetary policy to bank loan as banks adjust their portfolio mix in line with the prevailing monetary policy. Similarly, it revealed that changes in monetary policy often create fluctuations on bank health and as such regulatory authority must focus on factors such as monetary policy rate and bank capital that influence bank position in order to attain a significant economic performance using banks as a monetary policy transmission mechanism to the economy.
 
Nigerian banking sector struggle with challenges in the day to day running of their business activities, challenges are enormous and can either be market or operational challenges and regulatory or reforms challenges instituted by the regulatory agencies such as CBN, NDIC, SEC and CIBN etc. Therefore, this paper seeks to examine the challenges facing the Nigerian banking sector and proper possible solutions to the challenges based on the prevailing economic environment. The paper utilized questionnaires as source of data collection, fifteen out of 24 banks were selected based on purposive sampling method. Chi-Square (x2) method was adopted as a statistical tool of data analysis to analyze the collected data. The result reveals that myriad of challenges exist in the Nigerian banking sector some of which are challenges both within and outside Nigeria. Banks are left behind in technological innovation aspect of banking transactions, movement of high volume of deposit or capital flight to foreign banks by the political class which reduce banks opportunity to expand their market base and the prevalent of fraud in the sector also hinders the banks progress, these challenges affects the sector to compete equally with banking sector in the developed nations. However, we also found that the challenges does not affect their financial performance. It is recommended that that government and relevant regulatory agencies should put heads together to render support and address those challenges identified that affect the sector, also Nigerian banking sector should invest in both technological innovation and human capital development, they should imbibe the culture of good corporate governance and stick to the issue of banking ethics and professionalism among others.
 
Generally speaking, the borders in most of the African countries were among the upshot of the colonial ruling in those countries. Such demarcations were mostly created in a kind of problematic situation thereby causing serious misunderstanding among neighboring countries. It is also an imperative to know that these creations were actually perpetrated intentionally by the imperialist to serve so many purposes which includes among others the continuation of exploitation, free access to their colonies and coming back as aids providers. Moreover, such demarcations are being constructed on the papers without visiting those countries during the berlin conference in 1885 with the aid of complimenting the countries that were affected by the second world to revive them. Nevertheless, Nigeria without an exception has also faced with so many challenges in its borders especially the northern area. Therefore, this paper tries to examine why despite so many consideration by different governments and administrations yet border issues continue to be the most challenging factor in this prevailing situation in the country. Furthermore, the borders in the north were so porous to the extent that the issue of proliferation of weapons and food security were very obvious thereby challenging the security and economic wellbeing which in turn affect the nation building in the country.Based on the above, thisresearch concentrates on the qualitative technique on the area of economy and security as the drivers that highly contributed to this menaces and also measures to address it.
 
Pearson Correlation on the relationship between Reaction Level and Potential entrepreneur's
Pearson Correlation on the relationship between Behaviour Level and Potential Entrepreneurs
Pearson Correlation on the relationship between Participation Level and Potential entrepreneur's
The main objective of this study is to evaluate the training effectiveness on potential entrepreneurs through opportunity of participation given on a task in an organisation. The methodology used in this study is a survey research design through a quantitative approach. Questionnaires are used in collecting data in a cross-sectional survey. The data was analysed using the special package for social sciences (SPPS). Pearson’s correlation co-efficient and regression analysis were conducted. Sobel test was also conducted to confirm the mediating effect of opportunity of participation. The findings revealed that there is a positive relationship between training effectiveness (Kirkpatrick Four Levels) and potential entrepreneur’s performance. The regression analysis indicates opportunity of participation has been a dominant factor in the relationship between training effectiveness and potential entrepreneur’s performance. The integration of a mediator in the frame contributes to Kirkpatrick model in the extant training and development as well as entrepreneurship literature. Furthermore, policy makers and HR departments of business organizations will have more appreciation of how training can be appropriately evaluated more particularly, the on-the-job training for an improved performance.
 
This study concisely examined the relationship between monetary policy variables and performance of the Nigerian Capital Market, analyzed with appropriate econometric tools. After the analysis, the outputs revealed the following; the entire monetary policy variables employed only monetary policy rate has significant relationship with the performance of the capital market in Nigeria. It was also found that the previous information about the all share index has the capacity to predict future returns in capital market in Nigeria. On this note, the researchers are of the opinion to embark on prompt disclosure of the daily all share indexes by regulatory authorities, thereby refurbishing the efficiency of the Nigeria Capital Market. It is also suggested to adopt alternative means of disclosure apart from the national television stations and national daily newspapers because of our technological know-how in Nigeria.
 
The United States emerged as the most powerful country after World War II and as such found itself in an influential position to be involved in the future and destinies of many countries across the globe. The U.S. played a major role in the post War economic reconstruction in Europe and rendered assistance to many European states. American power at this time was seen to have extended to other parts of the globe, including the Middle East, which has been a region of interest to outside powers. This short paper tries to look at U.S. ambitions in the region and how far the U.S. has gone in achieving these ambitions. The paper argues that U.S. policies in the Middle East were in the long run, a failure, despite whatever successes achieved, following certain developments in the region, beginning with the 1979 revolution in Iran.
 
Governments in most developing countries are doing their best to ensure that graduates who are not employed should engage in entrepreneurship activities which can go a long way in reducing the problem of unemployment among the youths. Nigeria is among one of those developing nations with such problem. The government has introduced some many programs and policies which are aimed at reducing poverty and will encourage self-employment among the youths. Yet, students are still lacking the intention of becoming entrepreneur. From this study, there will be need to cover the gap found in the literature and then developed a conceptual framework (from which propositions where developed. The study used factors such as entrepreneurship education, environmental factors and societal entrepreneurship attitude to explore the student’s entrepreneurial intention. These factors where adopted bases on past theoretical and empirical studies which will cover the gap and contribute to the body of knowledge in the field of literature. Finally, this study calls upon researchers and Ministry of Education to examine this propositions on how to design a more comprehensive and benefice entrepreneurship courses and curriculum to these Nigerian universities. This will aim at preparing these students to be self-employed (entrepreneurs) which will reduce and assist the government in overcoming the problem of youth poverty and unemployment in Nigeria.
 
This paper examined money supply and inflation in Nigeria. The objective was to examine the extent to which components of money supply affect Nigerian inflation rate. Time series data was sourced from Central Bank of Nigeria (CBN) statistical bulletin and Stock Exchange Factbook. Nigerian Real Inflation Rate was proxy for dependent (INFR) variables while Currency in Circulation (CR), Demand Deposit (DD), Time Deposit (TD), Savings Deposit (SD) and Net Foreign Asset (NFA) were used as independent variables. The Ordinary Least Square (OLS) method of cointegration, Augmented Dickey Fuller Unit Root, Granger Causality was used as data analysis techniques. Regression result in the study shows that Currency in Circulation, Demand Deposit and Savings Deposit has negative relationship while Net Foreign Asset and Time Deposit have positive relationship with inflation. The Augmented Dickey Fuller Test proved non stationarity of the variables at level except Net Foreign Asset but stationary at first difference. The Granger Causality Test reveals no casual relationship running through the variables. The cointegration proved no long run relationship between the dependent and independent variables. The study conclude that Money Supply have significant relationship with Nigerian Inflation Rate. It therefore recommends effective management of money supply by the monetary authorities to achieve the monetary policy objectives of price stability.
 
Generalized Dickey-Fuller unit root test on the level of the model variables
Results of Estimates and Statistics by OLS, 2SLS and 3SLS Methods
Exchange of imbalances in real sector due to shocks (OLS / 2SLS / 3SLS
Simultaneous making policy of interest rates, exchange rates and capital accounts can be extended to trilemma theory, contrary to its earlier theories, provided that the imbalances of the private sector, the government and the capital account adjusted through the policy variables such as the government expenditures, the interest rates on domestic deposits, the interest rates on domestic loans, effective exchange rates, foreign prices and foreign interest rates. On the other hand, the components of the extension of trilemma theory in the form of internal and external imbalances affect the exchange rate. In other words, if the real sector markets of the economy are not cleared through the aforementioned trilemma components, and policy variables, internal and external imbalances will be affected by opposite direction of net domestic assets (ΔNDA) and net foreign assets (ΔNFA) of the banking system. This is in accordance with the fundamental principles of the monetary approach balance of payments and exchange rate. Policy variables do not put pressure on the unofficial exchange rate as long as they have the same effect on the net changes in the domestic and foreign assets of the banking system. The purpose of this study is to consider the effect of internal and external imbalances on exchange rate through the simultaneous equations system, generating impulses in policy variables, and examining reactions in Iranian economy. In this paper, the monetary exchange rate determination model is analyzed and examined by using the extension of trilemma theory for macroeconomic data of Iran in the form of internal and external imbalances. The results of this study suggest that policy variables can stabilize the unofficial exchange rate (with other conditions being constant) through trading off internal and external imbalances. Thus, the economic policymaker can, while independently policing interest rates, capital accounts and government expenditures and other policy variables in this research, maintain exchange rate stability as a strategic variable and anchor the general level of prices.
 
Different sizes of macro-econometric models are used for different policy purposes. In this paper, we introduce a small macro-econometric model that includes macro-aggregates variables that can be solved dynamically and be used as a sample model to be estimated for other countries.
 
Statistical Summary of the Variables
Short Run and Long Run Results for Finance and Growth; p-values in ( )
VAR Results for FCI and Economic Performance; p-value in ( )
The main aim of this study is to construct a financial conditions index for Nigeria and analyze its predictive power for future growth rate and inflationary trend. The study is based on yearly time series data from 1985 to 2018. The variables included in the construction of the index are riskless interest rate, stock market index, exchange rate, credit to private sector and interest rate spread. The weights attached to these variables are derived from ARDL coefficients, while the predictive power of the constructed index is examined within the VAR framework. The results from the ARDL model shows that credit to private sector and stock market index are the most significant factors for nominal GDP, hence having a substantial weight in the resultant financial conditions index. However, the results from VAR impulse response function and forecast error variance decomposition suggest that the constructed financial conditions index contain very little predictive information about future growth rate and inflationary trend.
 
Johansen Co-Integration Test Results: Maximum Eigen
Error Correction Estimate
Parsimonious Error Correction Results
The financial system is the transmission channel of monetary policy. This study examines the effect of monetary policy on the performance of insurance firms in Nigeria from 1990 – 2017. The objective is to investigate the existing relationship between monetary policy instruments and the performance indicators of insurance companies. Secondary data were sourced from Stock Exchange factbook, Central Bank of Nigeria (CBN) Statistical Bulletin. Multiple linear regressions were formulated to examine the effect of the independent variables on the dependent variable. Return on equity was modeled as a function of treasury bill rate, monetary policy rate, interest rate, growth of money supply and exchange rate. R2, T-Statistics, β Coefficient, F-Statistics and Durbin Watson were used to examine the extent to which the independent variables affect the dependent variables while augmented dickey fuller unit root test, granger causality test, cointgration test and error correction models was used to ascertain the dynamic relationship between monetary policy variables and return on equity of the insurance firms. Findings revealed that, all the explanatory variables have positive effect on return on equity except treasury bill rate. The unit root test found that the variables are stationary at first difference, the cointgration test found the presence of long run relationship while the granger causality test found a uni-directional causality. The study concludes that monetary policy has moderate effect on the return on equity of the insurance firms. We recommend that management of insurance companies should devise measures of managing the negative effects of the monetary policy instruments to enhance the performance of the insurance companies.
 
Despite development and extension of different ways of financing in financial markets, encompassing Islamic and conventional financing, the mechanism of Electronic Funds Transfer (EFT) of project financing both as borrowed and non-borrowed methods has not been considered at most. Moreover overall IT infrastructures development namely Real Gross Settlement System (RTGS), Automatic Clearing House (ACH), Scriptless Security Settlement System (SSSS) and International Bank Account Number (IBAN) for authentication process and the international meta bank network of Single Euro Payment Area (SEPA) and also international integrated banking networks including the Society For Worldwide Interbank Financial Telecommunication (SWIFT) and Interbank Information Transfer Network (Shetab), and other accomplished endeavors are not efficient in absorbing international contributions for project financing through foreign exchange funds in the different countries, satisfactory E-Payment mechanism in informative portal systems for investment projects are weak. In this way, the role of applying E-Payment systems for attracting foreign investment through retail resources mobilization and design of financial instruments with the capability of transacting in the secondary markets should be reconsidered. In this paper by having a glance at different types of investment project financing, we introduce a new project financing mechanism based on E-Payment with non-usury financial instruments to complete investment project financing chain in the form of Rastin Profit and Loss Sharing (PLS) banking.Sharia compliance of financing instruments in one side and accessibility in absorbing international retail foreign exchange sources on other side are two fundamental discussible items in this paper. In this way by designing a new system of "Non-Usury Scriptless Security Settlement System" (NSSSS) with non-usury mechanisms -avoiding legislative (Sharia) circumvention- can provide the two cited goals in designing non-usury financing instruments through IT-based non-usury financial innovations which includes of Rastin Certificates in Rastin PLS banking, and Non-Usury Bonds namely Rastin Swap Bonds.
 
In this study an attempt was made to prepare the research on Fu-Wang Foods Ltd. We have also analyzed the strategies, accounting policies and ratios. Historical and Proforma income statements, balance sheet and cash flow statement have been made. We have also determined, loosely speaking, the intrinsic value of stocks of firm. The company is in food processing industry. The position of Fu-Wang is good in this industry. Its long term profitability and sustainability is also secured. The accounting policies and estimates of Fu-Wang as well as the food industry are flexible enough. Management enjoys moderate discretionary powers. Analysis of the various ratios over the five years reveals that many of them are satisfactory and some are not. By doing the valuation of the company with some assumption we found the intrinsic value of the firm is approximately 36 tk. Sensitivity of stock price by changing the discount rate and sales growth rate has also been examined. By projecting the historical accounting figures we have also prepared Proforma income statements, balance sheets and cash flow statements and found that the future of Fu-Wang Foods ltd. is rather satisfactory, given some assumptions.
 
Despite this, there have been conducted outnumber of studies on the relationship between trade and unemployment around the world. The purpose of this study is to investigate the nexus between trade and unemployment, and whether trade creates or destroys jobs in the context of Afghanistan. To answer this question, the data was gathered from various sources including the World Bank, and the National Statistics and Information Authority of Afghanistan, from 1990 to 2018. Using ADF (Augmented Dicky Fuller) stationarity test, ARDL Bound test, and causality test. The empirical evidence showed only short-run consequences in one variable which is Gross Domestic Products Per Capita. Further, the study employed diagnostic and stability tests to understand the fitness of the model. Hence, this study surely answers the questions and shows that there is no link between trade and unemployment. Finally, the study evinced only the influence of GDP Per Capita on unemployment. Besides, there is a unilateral causality running from GDP Per Capita toward Unemployment and also the study analyzed that GDP Per Capita has a negative and significant impact on Unemployment in the short run. Eventually, the study suggests that the government needs to reform policy in regard to tackling unemployment through domestic investment.
 
This research investigates the effects of artificial intelligence and the digital economy on the 4 th industry revolution from the perspective of Bangladesh. Artificial intelligence affects the labour market both positively and negatively. Because of artificial intelligence, few existing jobs have been demolished and few new jobs have emerged as well. The digital economy in Bangladesh is now an emerging issue with the blessings of artificial intelligence. Few employment opportunities will be created in Bangladesh because of the emerging digital economy. The objective of this research is to analyze these opportunities and come out with a few policy recommendations to implement towards industry revolution 4. Secondary data have been used along with recent relevant literature to achieve the above-stated objective as this is empirical research. Ideas regarding the revised national plans, financial tools, emerging digital economy in Bangladesh are the prominent outcome of this research. The policy recommendations of managing the gap between the digital economy and industry revolution 4 regarding artificial intelligence could be helpful to The Government of the Peoples' Republic of Bangladesh to implement policies.
 
This research investigates effects of artificial intelligence and digital economy on the 4 th industry revolution from the perspective of Bangladesh. Artificial intelligence affecting the labor market both positively and negatively. Because of artificial intelligence, few existing jobs have been demolished and few new jobs have been emerged as well. Digital economy in Bangladesh is now an emerging issues with the blessings of artificial intelligence. Few employment opportunities will be created in Bangladesh because of emerging digital economy. The objective of this research is to analyze these opportunities and come out with few policy recommendations to implement towards industry revolution 4. Secondary data have been used along with recent relevant literatures to achieve the above stated objective as this is an empirical research. Ideas regarding revised national plan, financial tools, emerging digital economy in Bangladesh are the prominent outcome of this research. The policy recommendations of managing the gap between digital economy and industry revolution 4 regarding artificial intelligence could be helpful to The Government of the Peoples' Republic of Bangladesh to implement policies.
 
This paper attempts to investigate to understand customers' evaluation regarding service quality of e-banking in Bangladesh. It also examines the major challenges and required strategies for promoting e-banking. To conduct the study, a total number of 205 respondents were taken as sample from Chittagong region by using simple judgmental sampling technique. A face-to-face interview method was followed by using a structured questionnaire to collect the data. Five points Likert scale was used to examine the customers' evaluation on the service quality and through statistical measures it analyze the problem. Garret's ranking technique was applied to rank the qualitative data for analyzing challenges and required strategies of e-banking. The study reveals that from the customers' assessment, e-banking saves time and hazard, facilitates quick and easier access to information, speedy transaction, receiving service easily, ensures accuracy, effectiveness and security, provides versatile service, anytime, anywhere banking facility. The study also found that technological disturbance, insufficient infrastructure, unavailability of service in rural areas, high service charge are the major challenges of e-banking service in Bangladesh. The customers suggests to develop infrastructure, upgrade https://www.cribfb.com/journal/index.php/amfbr American Finance & Banking Review Vol. 6, No. 1; 2021 15 technology, increase security measure, enhance promotion for developing customers' awareness, introduce innovative initiative of Bangladesh bank, extend service across the country etc. INTRODUCTION There has been a significant change in the banking operation for the last few decades across the world due to quick change of technology. Banks are receiving updated technology for rendering new and better service and meeting competition in the market. E-banking is one of the methods of banking that rely on the best use of technology. The improvement of information technology and the accessibility of the internet have made it possible that one can take banking service from a remote area without stepping into a physical financial structure (Bruene, 2002). E-banking provides different information to customer through computer, telephone or mobile phone (Daniel, 1999). It allows customers to perform different transactions including account transfers, balance inquiries, online loan and credit card applications, bill payments staying away from banks. Comparing with traditional banking system, e-banking facilitates customers to receive 24-hour services, transactions at low cost, more secured transactions, higher volume of transactions at minimum time, more accurate transaction (Nasri, 2011). In Bangladesh, e-banking service is expanding rapidly as the people intension to adopt new technology is growing day by day. It has got massive prospective to open up new window of opportunity to the existing banks and financial institutions in our country. The initiative of Bangladesh Bank encourages bank financial institutions to promote e-banking. The e-banking service of foreign and local private commercial bank is better in consideration with state-owned commercial banks (Huda & Chowdhury, 2017). Banks are trying to render new and updated e-banking service to attract and retain customers. Having huge demand from retail customers and business community e-banking is still at a budding state due to some constraints like inadequacy of reliable and secure information infrastructure, poor network connectivity, high internet charge, lack of IT literacy of customers, insufficient legal and regulatory framework, huge investment requirement for adopting new technology etc. (Sadekin & Shaikh, 2016). Bangladesh bank needs to take several innovative initiatives to boost e-banking service across the country. Commercial banks should also come forward to introduce new technology in their banking operation for ensuring customers' satisfaction and meeting global challenge. There were very few studies conducted on e-banking practices in Bangladesh particularly no comprehensive study has yet been conducted regarding customers' assessment. Besides, the challenges of adopting e-banking along with the required strategies to be followed were not covered in the previous studies. The focus of this study is to fulfill the gap.
 
Two-Phases Maturity of Rastin Swap Bonds
Low rate of return of National Development Fund (NDFI) resources and the concern regarding Sovereign Wealth Funds (SWFs) motivations and incentives to distort financing toward those investments and companies that are influenced by different political pressure groups and other types of corruptions are important problems with these funds. We try to propose a different financing procedure by using Rastin Banking mechanism and standards to fulfill both non-usury financial operations and fruitful supervised investments. This goal is achieved through Rastin Profit and Loss Sharing (PLS) system through Rastin Certificates financial instruments. Moreover, the governments operationally construct SWFs to use their surplus resources of the prosperity period in recession and crises years. We also show that Asset and Liability Management (ALM) of SWFs can be done by using Rastin Swap Bonds (RSBs) that are other Rastin Banking financial instruments. The proposed procedures positively improve NDFI regarding corruption reduction, supervision, preventing usury, availability of resources, funds stability, transactable instruments, operational ALM, rate of return, risk of bad loans, outstanding claims and transparency.
 
NBFIs play an important role in economic development through ensuring proper mobilization of funds in Bangladesh. This study represents a comparison of nine NBFIs operating their business in Bangladesh within the period from 2016 to 2019 through using financial ratios and other measures. To analyze the financial performance this study has used ratio analysis, such as ROA, ROE, ROCE, Institutional size/ Total assets and total equity etc. The outcome of this study says that for generating return the NBFIs performance based on efficiency ratio is different from the performance based on liquidity ratio, capital ratio and other financial measures. This study suggests to NBFIs to be more conscious about loan selection and establish a brand image through providing more efficient services. It also suggests the NBFIs to finds more income generating areas to be more competitive. In the coming years NBFIs will have more prospects that will ensure the economic development of our country.
 
Purpose: This paper aims to explain the effects of the bankruptcy of one firm in other interrelated companies which are in connection with the bankrupted firm, and shows how the insurance breaks the chain of serial bankruptcy. Design: By economic analysis of insurance, the “chain bankruptcy” theory is put forward as a new theory. Findings: Through a mathematical-behavioral model, we will show how insurance breaks the chain bankruptcy in the economy. Research limitations: We have developed the case with simple modeling based on specific assumptions. In the next step, it would be extended to a more complicated and real set of assumptions. Practical implications: We show how insurance products can break serial bankruptcy in the economy. Social implications: It is shown that how insurance stabilizes the economy and make the business cycle oscillation range narrow. Originality/value: This approach is entirely different and new. Article Type: Research paper
 
Average of Institution Size or Total Assets
Earnings per share (EPS) RS Earnings per share (EPS) RS
Total debt to total Assets Ratio
Commercial banks play an important role for the purpose of sustainable economic development in a country. This paper main theme to presents the comparison of financial performance between private commercial banks in Pakistan during the period of 2015-2019 by using the method of ratio analysis and some other financial indicators. Fourteen Commercial banks out of fifteen banks are selected for comparison of financial analysis. Due to the unavailability of data, the remaining one bank is not chosen for study because, yet they did not publish their final report in 2019. The data of ratio analysis was captured by using the final report of commercial banks, which are available on the bank's official websites. This study provides information about the different ratios which directly impact on bank performance.
 
In this paper, the L1 norm of continuous functions and corresponding continuous estimation of regression parameters are defined. The continuous L1 norm estimation problems of linear one and two parameters models are solved. We proceed to use the functional form and parameters of probability distribution function of income to exactly determine the L1 norm approximation of the corresponding Lorenz curve of the statistical population under consideration. U.S. economic data used to estimate income distribution for the period of 1977-2002. An interesting finding of these calculations is that the distribution of income obeys a counter wise business cycles fluctuations. This finding is a new area for research in realm of the theory and application of income distribution and business cycles interrelationship.
 
This paper examined the literature on financial stability implication of stress testing for risk-taking and credit growth in banks. Macro prudential considered one of the most stress testing tools by Applying countercyclical Macro prudential tools to build up capital buffers in good times that can be run down during bad times. But to improve timing, monitories authorities may need to develop a comprehensive framework to monitor Macro prudential conditions and establish appropriate warning and trigger thresholds. Regarding scope, they examine the entire financial system. This entity contributes to fire sales whose default has follow-on effects, or which can exacerbate a credit crunch that is included. Liability Considerations contain a Scale of wholesale funding that is run-prone is paramount. Capital adequacy depends on the health of the overall financial system. For asset Considerations, the test indicates whether the financial system is vulnerable to deleveraging that might amplify adverse shocks, at the end authorities' development guidance about whether to close a bank and when to sell its assets to maximize taxpayer recovery. We have concluded that the financial stability implications of stress tests for risk-taking and credit growth among banks are the following: A reduction in credit is a feature on stress tests. Post-crisis reforms traded the expectation of lower credit growth for reducing the probability that the larger banks would fail. This has a high negative impact on the economy. Higher capital requirements for the larger banks have prompted a reduction in the supply of credit, especially to riskier borrowers. Smaller banks have increased their share of local market-wide lending, and larger businesses have seen quite generous credit availability in bond and leveraged loan markets. Consider the structure of the financial system and its complexity long the levels of economic integration and openness.
 
A flexible Lorenz curve which offers different curvatures allowed by the theory of income distribution is introduced. The intrinsically autoregressive nature of the errors in cumulative data of the Lorenz curve is also under consideration.
 
Correlation Matrix of Variables
Total effect of expected dividend on change in share price
This study empirically tests for the validity of Miller and Modigliani’s dividend irrelevance proposition in the Nigerian Stock Exchange (NSE). Secondary data were obtained from the Nigerian Stock Exchange fact book and firms’ annual audited financial statements for fifteen years (2001-2015). Mediation Analyses, was used to measure the direct and indirect effects of dividend on stock price. Correction of the anomalous use of current dividend and current earnings by the use of naive expectation of dividend and earnings revealed that the direct effect of expected dividend on share price is significant but the indirect effect of expected dividend on share price through earnings is not significant. The implication of these results is that expected dividend has its unique (direct) effect on share price beyond the effect on share price which it shares with expected earnings (indirect effect). This conclusion suggests that dividend policy is relevant in valuation of shares in NSE. It was therefore recommended that company management should treat dividend as an active corporate finance decision-making variable and should employ dividend in information signalling to capital market investors.
 
Correlation Matrix of Variables
Total effect of expected dividend on change in share price
This study empirically tests for the validity of Miller and Modigliani's dividend irrelevance proposition in the Nigerian Stock Exchange (NSE). Secondary data were obtained from the Nigerian Stock Exchange fact book and firms' annual audited financial statements for fifteen years (2001-2015). Mediation Analyses, was used to measure the direct and indirect effects of dividend on stock price. Correction of the anomalous use of current dividend and current earnings by the use of naive expectation of dividend and earnings revealed that the direct effect of expected dividend on share price is significant but the indirect effect of expected dividend on share price through earnings is not significant. The implication of these results is that expected dividend has its unique (direct) effect on share price beyond the effect on share price which it shares with expected earnings (indirect effect). This conclusion suggests that dividend policy is relevant in valuation of shares in NSE. It was therefore recommended that company management should treat dividend as an active corporate finance decision-making variable and should employ dividend in information signalling to capital market investors.
 
Trend of Monthly Average Official Exchange Rate of the Naira and Fiscal deficit (% of GDP) Source: Authors' estimates based on data from Central Bank of Nigeria (CBN), 2018.
Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) unit root test results
Bounds F-tests for cointegration relationship
The paper offers empirical justifications for the instrumentality of external sector in influencing the fiscal position of a country through the exchange rate. In the study, ARDL bounds test approach to cointegration analysis is adopted to examine the long run and short run relationship between exchange rate and fiscal performance in Nigeria. The validity of the findings is based on time series data between 1981 and 2017. The emerging evidence reveals that the exchange rate movement has a substantial influence on the fiscal performance, as there exists a significant adverse relationship between exchange rate and fiscal deficit in the long run as well as in the short run, while the association between exchange rate and public debt is found to be significantly positive in both periods. Empirical elucidations posit that an appreciation of the exchange rate could lead to decreasing fiscal deficits. However, the exchange rate appreciation might not induce a reduction in public debt, as it could stimulate demand for loanable funds by the government, although such effect could be mitigated through strategic investment policy and subsidized funding schemes to aid domestic production. Given that fiscal performance is considerably driven or constrained by the exchange rate movement, the study suggests that developing a strategic framework for ensuring a realistic exchange rate and the mitigation of regular fluctuations or correcting inappropriate exchange rate is crucial.
 
Descriptive Statistics 
Correlation Matrix Table 
Summary of Regression Result -Random Effects Model 
This study assesses the effect of liquidity risk on firm performance of listed insurance companies in Nigeria for the period of 2011-2015. The listed insurance firms are twenty Five (25) in numbers out of which a sample of twelve (12) were used for the study. Liquidity risk as the independent variable was proxy with leverage, claim loss ratio and premium growth, while the return on asset was used to proxy firm performance. The study adopts a panel multiple regression techniques and data were collected from secondary source through the annual reports of the firms after controlling for fixed/random effects.The findings of random effect reveal that leverage has significant negative effect on return on assets. The claim loss ratio has insignificant negative influence on return on assets while premium growth has positive and insignificant effect on firm performance of listed insurance companies in Nigeria. It is recommended among others that the managers, shareholders and other stake holders to checkmate and control liquidity risk as it have been found empirically to enhance the quality of the firm's financial performance.
 
Top-cited authors
K. M. Anwarul Islam
  • The Millennium University
Bijan Bidabad
  • Islamic Azad University Tehran Science and Research Branch
Mahmoud Allahyarifard
  • The Iran Banking Institute
Mohammed Masum Iqbal
  • Daffodil International University
Md. Mobarak Hossain
  • University of Nevada, Reno