The role of technical efficiency, market competition and risk in the banking performance in G20 countries
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 30 March 2021
Issue publication date: 22 October 2021
Abstract
Purpose
Recently, the financial sector has faced significant challenges regarding the market competition, its technical efficiency and risk factors around the globe and gain recent researchers' intentions. Thus, the present study aims to examine the impact of technical efficiency, market competition and risk in banking performance in Group of Twenty (G20) countries.
Design/methodology/approach
Data have been obtained from the World Development Indicator from 2008 to 2019. For analysis purpose, random effect model and generalized method of moments (GMMs) have been executed using Stata.
Findings
The results revealed that market competition and banks' capital efficiency have a positive impact on banking performance, while banks' lending efficiency and non-performing loans have a negative association with the banking sector performance of G20 countries. These outcomes provide the guidelines to the regulators that they should formulate the effective policies related to the lending practices and non-performing loans that could improve the banking sector performance worldwide.
Research limitations/implications
The study has examined only three economic factors like the technical efficiency rate, market competition and risk element, and their influences on banking institutions' operational and economic performance. But the analysis has proved that except these factors, several factors affect banking institutions' operational and economic performance. Thus, future scholars recommend they analyze all the banking sector areas, pick more factors and enlighten their operational and economic performance influences. Moreover, the author of this article has chosen a particular source for collecting data to meet his study's objective. Only a single piece of software has been applied to analyze data; thus, the data collected for this paper may be incomplete, lack accuracy and reliability. Therefore, the future authors are recommended to use multiple sources to collect data and its analysis to ensure the comprehension, completeness and accuracy.
Originality/value
Last but not least, this study with the evidences from the banking sector of G20 countries tries to show on the banking management how the risk element matters in the banking sector in an economy. It makes it clear in which areas the banking institutions may be exposed to the risks, and how much sever different kinds of risks may be. Thus, it motivates the management to set a body of persons within the organization to monitor the risks, to try to avoid them and to overcome the problems created by these risks events.
Keywords
Acknowledgements
Retraction notice: The publishers of the Business Process Management Journal wish to retract the article Zhao, Y., Chupradit, S., Hassan, M., Soudagar, S., Shoukry, A.M. and Khader, J. (2021), “The role of technical efficiency, market competition and risk in the banking performance in G20 countries”, Business Process Management Journal, Vol. 27 No. 7, pp. 2144-2160. https://doi.org/10.1108/BPMJ-12-2020-0570. This article was originally submitted to the Special Issue: Intelligent solutions in business administration, economics and accounting policy, which was subsequently cancelled.
Following concerns raised by Chiang Mai University regarding the authorship of this article, an investigation has shown evidence of a compromised peer review process. As a result, the findings of the article cannot be relied upon.
Authors submitting to the journal are expected to adhere to the guidelines and policies of the journal.
Despite numerous attempts to contact the authors, the journal has received no response; the response of the authors would be gratefully received.
The publishers of the journal sincerely apologise to the readers.
The authors received funding for this work from the Deanship of Scientific Research at King Saud University, through research group no RG-1435-075.
Citation
Zhao, Y., Chupradit, S., Hassan, M., Soudagar, S., Shoukry, A.M. and Khader, J. (2021), "The role of technical efficiency, market competition and risk in the banking performance in G20 countries", Business Process Management Journal, Vol. 27 No. 7, pp. 2144-2160. https://doi.org/10.1108/BPMJ-12-2020-0570
Publisher
:Emerald Publishing Limited
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