Issue #4 (cont.) (Volume 11 2016)

The paper explored the extent to which current microfinance lending impacts on indigenous SME access to finance and how the intermediation services of the microfinance banks (MFBs) contributed to or otherwise to the development of SMEs. A total of 800 such indigenous SMEs were identified, however, data were obtained from 300 of the identified indigenous SMEs from a questionnaire survey in four states (provinces) within the country that make up the Niger Delta region. The result shows positive contribution of microfinance lending to the development of such enterprises. However, it appears that a number of factors including cumbersome process, poorly packaged business plans and perceived high cost of credit still limit the access of indigenous SMEs to credit.

Keywords: microfinance banks, SMEs, entrepreneurship, financial services.
JEL Classification: G21, L26, M13

This study examines the influence of ease of use, security concerns and attitudes on South African consumers’ satisfaction with ATM banking services. Participants of the study were solicited through electronic mailing list of ATM users in South Africa. These participants were provided with a website link that directed them to an online survey hosted by Qualtrics. A total of 224 participants from the various provinces of South Africa responded. This study confirms that customer satisfaction is linked to security concerns, attitudes and ease of use. Overall, the results indicate that the respondents were satisfied with ATM banking services. Since there is a shortage of research on customer satisfaction with ATM banking services in South Africa, an area often neglected by South African researchers, this study contributes to knowledge available in the existing literature.

Keywords: ATM banking, customer satisfaction, ease of use, security, attitudes.
JEL Classification: G21, M31

This paper examines internet banking fraud awareness by the banking sector in Southern Africa as financial consumers’ protection. The study is grounded on routine activity theory and criminology theory. A qualitative content analysis research technique was used for examination of the text content data through the consistent nomenclature process of coding and classifying themes or patterns to proffer a meticulous considerate of internet banking fraud awareness in the banking sector. The findings suggest that internet fraud awareness to the general public through website is very low by many Southern Africa banks. Most of the banks disclose less than half of the identified internet banking fraud awareness to the general public on their websites. Although some banks have internet fraud information on internet banking applications, however, the authentic efficacy of this information is tentative. This proposes that most of the financial customers engage internet banking transactions without sufficient awareness on potential internet threats and attacks. There is, consequently, high likelihood of financial consumers being internet banking fraud victims.

Keywords: internet fraud, internet banking, fraud awareness, financial consumer.
JEL Classification: G21, D18

This paper examined the effects of value relevance of financial statements on firms share price in Nigeria. In achieving the objectives of this research, the fact book from the Nigerian Stock Exchange Market and the audited financial statement of listed banks spanning the period 2010-2014 were used. Also, a total of 15 listed banks in the Nigerian stock exchange market were selected and analyzed for the study using the purposive sampling method. However, in analyzing the research hypotheses, the study adopted the use of both descriptive statistics and the use of Fixed Effects Panel data method of data analysis technique. Findings from the study showed that a significant positive relationship existed between earnings per share (EPS) and Last day share price (LDSP). The study recommends the need for banks in the country to improve on the quality of earnings reported, since it has a stronger ability to explaining share prices of firm.

Keywords: value relevance, financial statements, Nigerian, earnings per share, last day share, price, book value per share, accounting information.
JEL Classification: M41, G21

Attracting and retaining profitable customers to new and unfamiliar products and services is one of the challenges that the banking fraternity is faced with today. The purpose of this article is to highlight some of the important factors that influence attitude in the Islamic banking. Probability sampling was used and 250 questionnaires were distributed among participants based at a local university in Johannesburg. The results revealed that there is a positive relationship between product awareness, social norms, community influence and attitude towards Islamic banking. Also, the results indicated that most of the respondents were not aware of the Islamic banking. The bank practitioners and marketers were, therefore, recommended to take a focused approach on creating awareness of the Islamic banking. Marketers can target community leaders or opinion leaders in order to shed light on Islamic banking to the rest of their community.

Keywords: product awareness, social norms and community influence.
JEL Classification: G21, Z13

This paper seeks to contribute to the literature on financial integration using panel estimates to test beta- and sigma-convergence across the European Union countries’ interest rates and towards two specific benchmarks — the German and US rates — covering the time interval between 1999 and 2014 and taking into account the recent international financial crisis. The findings point to the existence of a process of convergence of interest rates and this process may be considered as part of the global process of integration. Furthermore, there is evidence of convergence to the chosen benchmarks, in particular of short-term real interest rates; the speed of this convergence towards the German rates clearly increased in the EU as a response to the financial crisis.

Keywords: financial integration, banking market, European interest rates, beta-convergence, sigma-convergence, panel data estimates.
JEL Classification: C2, E4, F3, G1, G2

In South Africa, the financial sector contributes approximately 10.5% to the country’s gross domestic product (GDP). Although the 2007-2009 global financial crisis did not directly impact the domestic market, it threatened the profitability of the financial sector and triggered changes that affected the role of the internal audit function. In particular, stakeholders’ expectations from the function have significantly increased. Against this background, the study seeks to identify the key success factors of performing internal audit reviews of capital markets business areas within the big four South African banks. For this purpose, in-depth interviews with experienced internal auditors, risk managers and traders were carried out. The study suggests several implications and recommendations for the risk management, internal audit and audit committee functions that can also be adopted by interested parties from non-financial institutions.

Keywords: internal audit, value creation, skills, stakeholders, capital markets.
JEL Classification: G31, M42

This paper reviews the evidence on the impact of institutions and credit market on development outcomes. The study uses panel data techniques and the data is from 1995 to 2013. The results shows that the better the institutions, the higher the credit extension to the private sector and higher the level of economic development. This applies also to credit market. If credit market functions well, development is bound to increase. This has important implications for policy in Africa. Governments should aim to improve their institutions to increase the economic development of their countries. Also, improvement in markets, especially, credit access will increase development.

Keywords: institutions, credit market, fixed effects, development and Africa.
JEL Classification: E5, C23, O16, G1, G21

In the research, bank patterns analysis is held on the basis of Kohonen self-organizing maps with the aim to determine further directions of bank strategies development under the influence of crisis events in Ukraine’s economy. For model practical approval, the sample of 32 banks was formed, which presents four groups of banks according to the classification determined by the National Bank of Ukraine. While constructing model, 15 indexes were used that characterize bank’s functioning efficiency. As a result of research, cluster ranking was constructed, the groups (powerful banks, stable, problem banks and banks that are in the crisis state and bankrupt state) were formed and the trajectory of bank evolution as a patterns unity, each of which characterizes the activity of bank on a definite moment of time. It gives possibility for the government regulation authority – central bank to take decisions according to the appropriateness use of regulation instruments of separate bank with the aim of saving stable banking system state in a whole, and for the clients – to evaluate bank’s reliability.

Keywords: banks, banking system, economic modeling, Harrington desirability function, cluster analysis, self-organizing map, pattern of bank.
JEL Classifications: G17, G21, G33