Determinants of Bank Profitability in Turkey: An Empirical Analysis on Types of Banking from 2002 to 2012

In this study, we investigate the determinants of banking profitability related to their financial statements. One of the major aim of financial systems is to make stability over the financial companies. Well known financial companies are Banks. If Banks make more profitable works, it can provide better effect to sector as an efficiency. The profitability of banks are more important for financial systems. Because of a lot of factors may affect to the banks as a widely way. Some researchers may emphasize banks earnings how it can improve which internal and external forces. Main studies are focused on banks financial statements. Therefore it is important how can we analyse their financial statements for evaluating profitability. With this current emphasis on financial statements are very important to both managing future and making new decision to guide. In Turkey, during from 2002 to 2012 period, bank’s profitability approaches has been changed to new phenomenon. Because of regulative decisions and competitive market has to change profitability of banking sectors. Therefore banking sector profitability are substantial for Turkey which to understand the determinants of all types of banks. On the other hand, financial atmosphere give priority to above changes for evaluating their performances. Therefore many studies were analysed profitability with various methods like ratio analyses, predicting regression model, simulation methods and etc. Some learning from expert’s experiences are rely on use of panel comparison with others about same historical infrastructure. In this study we examines types of banks as follows: 3 banks in state-owned banks, 12 banks in Private banks, 6 banks in foreign banks which has a branches in Turkey. In total 21 banks and 3 types analyses with cross-sectional panel data method during the from 2002 to 2012 period. In this study, we obtained data from Income Statements and Balance Sheets. As a result of panel data regression are statistically significant which Interest Income / Total Income and Consumer Loan/Total Loan are highly important to estimate ROE than estimating ROA

Implementing the market approach to enterprise support - an evaluation of ten matching grant schemes

Developing viable new business is critical to recovery, and long-term growth, especially in transition economies. There has been a long history of public support of enterprise development, starting with centralized state agency initiatives, but moving more recently to decentralized instruments for development of the business services market. The window of time during which the benefits of intervention are likely to be greatest: when a market is in its infancy, and its development is constrained by uncertainty, and lack of information. Interventions for enterprise support should be demand-responsive, and flexibly organized. In some circumstances, centralized assistance may still be effective, but it is generally better to use competitive private service providers responding to enterprises'changing needs. The main task is to stimulate the private services sector, improving its capacity to respond to the demands of new, and expanding private enterprises. Support for enterprises has tended to be either free, or heavily subsidized. But such subsidies can be justified only if interventions efficiently supply goods. Providing technical, and management know-how can be a public good if it generates externalities- if, for example, know-how benefits can be disseminated at proportionately low additional cost. Any subsidy for an intervention should be temporary, and should be phased out when the main objective of intervention is achieved - that is, when the market takes off. Grants should generally be for know-how, not for equipment. There may be a case for unbundling the know-how component of loans (including feasibility studies, and follow-up expert services) for grant funding. A package combining loans and grants - through a single financial institution, or through separate institutions - may work provided safeguards can be put in place to prevent perverse use of grants. The matching grant model, which is used increasingly in the World Bank, and elsewhere, is one solution - but it must be justified, and carefully designed. After evaluating ten matching grant funds, the author concludes that performance is mixed. Best practice models are needed. Ensuring economic benefits requires proactive management, with clear objectives of market facilitation ("making a market"). And it requires a balance between rapid grant approval procedures, and careful selection of services for grants.Economic Theory&Research,Decentralization,Enterprise Development&Reform,Environmental Economics&Policies,Banks&Banking Reform,Health Economics&Finance,Banks&Banking Reform,Economic Theory&Research,Environmental Economics&Policies,ICT Policy and Strategies

Public-public partnerships (PUPs) in water

A comprehensive global analysis of the use of public-public partnerships in water in over 60 countries

Public-public partnerships (PUPs) in water

Water operators need to be efficient, accountable, honest public institutions providing a universal service. Many water services however lack the institutional strength, the human resources, the technical expertise and equipment, or the financial or managerial capacity to provide these services. They need support to develop these capacities. The vast majority of water operators in the world are in the public sector – 90% of all major cities are served by such bodies. This means that the largest pool of experience and expertise, and the great majority of examples of good practice and sound institutions, are to be found in existing public sector water operators. Because they are public sector, however, they do not have any natural commercial incentive to provide international support. Their incentive stems from solidarity, not profit. Since 1990, however, the policies of donors and development banks have focussed on the private companies and their incentives. The vast resources of the public sector have been overlooked, even blocked by pro-private policies. Out of sight of these global policy-makers, however, a growing number of public sector water companies have been engaged, in a great variety of ways, in helping others develop the capacity to be effective and accountable public services. These supportive arrangements are now called 'public-public partnerships' (PUPs). A public-public partnership (PUP) is simply a collaboration between two or more public authorities or organisations, based on solidarity, to improve the capacity and effectiveness of one partner in providing public water or sanitation services. They have been described as: “a peer relationship forged around common values and objectives, which exclude profit-seeking”.1 Neither partner expects a commercial profit, directly or indirectly. This makes PUPs very different from the public–private partnerships (PPPs) which have been promoted by the international financial institutions (IFIs) like the World Bank. The problems of PPPs have been examined in a number of reports. A great advantage of PUPs is that they avoid the risks of such partnerships: transaction costs, contract failure, renegotiation, the complexities of regulation, commercial opportunism, monopoly pricing, commercial secrecy, currency risk, and lack of public legitimacy.2 PUPs are not merely an abstract concept. The list in the annexe to this paper includes over 130 PUPs in around 70 countries. This means that far more countries have hosted PUPs than host PPPs in water – according to a report from PPIAF in December 2008, there are only 44 countries with private participation in water. These PUPs cover a period of over 20 years, and been used in all regions of the world. The earliest date to the 1980s, when the Yokohama Waterworks Bureau first started partnerships to help train staff in other Asian countries. Many of the PUP projects have been initiated in the last few years, a result of the growing recognition of PUPs as a tool for achieving improvements in public water management. This paper attempts to provide an overview of the typical objectives of PUPs; the different forms of PUPs and partners involved; a series of case studies of actual PUPs; and an examination of the recent WOPs initiative. It then offers recommendations for future development of PUPs

Innovations in rural and agriculture finance

Most rural households lack access to reliable and affordable finance for agriculture and other livelihood activities. Many small farmers live in remote areas where retail banking is limited and production risks are high. The recent financial crisis has made the provision of credit even tighter and the need to explore innovative approaches to rural and agricultural finance even more urgent. This set of 14 briefs clearly points out the importance of business realities faced by small farmers, including low education levels, the dominance of subsistence farming, and the lack of access to modern financial instruments. These conditions mean that new and innovative institutions are required to reach small farmers. Emerging communication technologies provide new opportunities for rural banking by reducing business costs and alleviating information asymmetries. New financing instruments, such as weather index-based insurance and microinsurance, also have great potential for managing the risks faced by small farmers. In addition, bundling financial services with nonfinancial services like marketing and extension services offers new opportunities for small farmers to increase their productivity and incomes. Finally, an enabling policy environment and legal framework, enforcement of rules and regulations, and a supportive rural infrastructure all contribute immensely to making sustainable access to finance a reality. Table of Contents: •Innovations in rural and agriculture finance: Overview by Renate Kloeppinger-Todd and Manohar Sharma •Financial literacy by Monique Cohen •Community-based financial organizations: Access to Finance for the Poorest by Anne Ritchie •Rural banking in Africa: The Rabobank approach by Gerard van Empel •Rural banking: The case of rural and community banks in Ghana by Ajai Nair and Azeb Fissha •Rural leasing: An alternative to loans in financing income-producing assets by Ajai Nair •Determinants of microcredit repayment in federations of Indian self-help groups by Yanyan Liu and Klaus Deininger •M-PESA: Finding new ways to serve the unbanked in Kenya by Susie Lonie •Biometric technology in rural credit markets: The case of Malawi by Xavier Giné •Credit risk management in financing agriculture by Mark D. Wenner •New approaches for index insurance: ENSO insurance in Peru by Jerry R. Skees and Benjamin Collier •Microinsurance innovations in rural finance by Martina Wiedmaier-Pfister and Brigitte Klein •Combining extension services with agricultural credit: The experience of BASIX India by Vijay Mahajan and K. Vasumathi •Bundling development services with agricultural finance: The experience of DrumNet by Jonathan Campaigne and Tom RauschAgricultural innovations -- Developing countries, agriculture finance, Financial crisis, microinsurance, Poverty reduction, rural banking, Rural finance, Rural households, Small farmers,

Global Banking after the GFC: Lessons for India

This paper is based on a keynote presentation at the 2nd Pan IIM World Management Conference hosted by the IIM in Kozhikode (IIMK) in November 2014. It draws lessons from the ‘Global’ Financial Crisis for the governance, regulation and structural reform of banking, as well as monetary policy in a globalising financial system. Lessons are also drawn from the Eurozone Crisis, the Asian Financial Crisis and China. The focus then turns to lessons for India with regard to banking and economic growth, financial sector development, and addressing market failures in SME and infrastructural finance. It concludes that the appropriate extent of state ownership of banks and the process for reducing it, whilst also recapitalising banks, along with the development of capital markets, should be an integral part of India’s wider structural reform programme

Corporate Governance for Banks in Pakistan : Recent Developments and Regional Comparisons

The emerging economies in the South Asian region have embarked on a bold reform process to develop the banking sector. This development has improved the transparency and accountability of the banking sector because these countries focused on best practice corporate governance for banks. In view of a rapidly developing market with a slow pace of information dissemination, adverse selection and moral hazard problems are likely to be on the rise and may need a mechanism to train and discipline bank management. It was, therefore timely for the central banks in the region to introduce a best practice for the banking system as a whole. This study provides a survey of recent developments in corporate governance of the banking sector in Pakistan and a comparison of similar developments in two other regional economies, namely, India and Bangladesh. In addition to a theoretical discussion on this issue, we also provide an overview of the banking sector restructuring and highlighting important features of the codes of corporate governance established by central banks in the sample countries. In conclusion, we present a comparison of the major differences in these measures across countries and comment on the pace of these developments.Banking, Corporate governance, banking sector restructuring

Corporate Governance for Banks in Pakistan: Recent Developments and Regional Comparisons

The emerging economies in the South Asian region have embarked on a bold reform process to develop the banking sector. This development has improved the transparency and accountability of the banking sector because these countries focused on ‘best practice’ corporate governance for banks. In view of a rapidly developing market with a slow pace of information dissemination, adverse selection and moral hazard problems are likely to be on the rise and may need a mechanism to train and discipline bank management. It was, therefore timely for the central banks in the region to introduce a ‘best practice’ for the banking system as a whole. This study provides a survey of recent developments in corporate governance of the banking sector in Pakistan and a comparison of similar developments in two other regional economies, namely, India and Bangladesh. In addition to a theoretical discussion on this issue, we also provide an overview of the banking sector restructuring and highlighting important features of the codes of corporate governance established by central banks in the sample countries. In conclusion, we present a comparison of the major differences in these measures across countries and comment on the pace of these developments.Corporate Governance, Banks, Pakistan

Creating Shared Value in India: How Indian Corporations Are Contributing to Inclusive Growth While Strengthening Their Competitive Advantage

Leading companies are finding new ways to accelerate growth and increase competitive advantage through innovative business models that meet societal needs at scale. These companies are "creating shared value" by using their core business processes and practices to enhance the competitiveness of companies while improving social and environmental conditions. The concept of Creating Shared Value (CSV) was introduced by the co-founders of FSG, Harvard Business School professor Michael Porter and senior fellow at the Harvard Kennedy School Mark Kramer, in several Harvard Business Review articles (most recently in January/February 2011). FSG's research in India has identified a number of highly innovative examples of shared value. In this paper, we highlight these examples and call on corporations, especially our largest ones, to lead the charge toward a strategy for growth that benefits all our citizens

CUSTOMERS’ SATISFACTION IN ATM SERVICE: AN EMPIRICAL EVIDENCES FROM PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

The aim of this paper was to provide a preliminary comparative investigation of the customer satisfaction in ATM service of public and private sector banks in India. For this investigation primary data was collected from 150 respondents of public and private sector banks through a structured questionnaire. Collected data was analyzed according to the objectives of the present research and result of the statistical analysis indicates that private sector banks are providing more satisfactory ATM service as compared to public sector banks. Empirical evidences indicates that customers perception about Efficiency, Security and Responsiveness, Cost Effectiveness, Problem Handling and Compensation and Contact service related to ATM service is low in both public and privates sector banks (ranging between 3.00 to 3.50). Therefore both types of banks should aware about these aspects of ATM service to enhance customers’ satisfaction.ATM, Service quality, Brand perception, Perceived value, Satisfaction, Public and Private Banks, India