Investigating the effective factors on resource mobilization in branches of Refah Bank in Isfahan

Dissertation for Master's Degree in Public Administration

Financial Orientation

Abstract

The main purpose of this research was to investigate the factors affecting resource mobilization according to importance and priority in Refah Bank branches (Isfahan city). For this purpose, the effective factors have been divided into five general categories including: service factors, financial factors, physical factors and conditions, communication and human factors, and organizational dependency factors. The research was applied and its method was descriptive-survey. The statistical population of the research includes managers and customers of Refah Bank branches in Isfahan. Due to the limited size of the community of managers, the information needed for this group was collected through a census, and 384 people were selected from the customer community using the Karjesi and Morgan table as a simple random sampling. In order to collect information, two questionnaires (one for managers and the other for customers) were used. These questionnaires were designed based on theoretical principles and as a five-option Likert scale. The content validity of the questionnaires was evaluated positively by professors and experts. The validity of the questionnaires was also calculated based on Cronbach's alpha coefficient. 0.85 for managers' questionnaire and 0.825 for customers' questionnaire and data analysis was done using spss software. Due to the lack of sampling in the first research community (managers of Refah Bank branches in Isfahan city), descriptive statistics were sufficient, and research questions were tested in the second community (bank customers) using inferential statistical methods. These statistical tests include univariate t-test, one-way analysis of variance test, independent t-test, Tukey's test, and Friedman's rank test. The results obtained from this research showed that all the above five factors had a more than average effect on resource allocation in Refah Bank branches. The order of importance of the factors from the point of view of customers is service factors, physical factors, communication and human factors, financial factors and organizational dependency factors, and from the managers' point of view, service factors, communication and human factors, physical factors, financial factors and organizational dependency factors. In addition, in relation to the factors affecting the attraction of banking resources, a significant difference was observed among some demographic factors from the customers' point of view (including: age, education degree, job). 

Key words: Refah Bank, supply of resources, banking resources

- Introduction

The provision of monetary resources started from the very beginning when human beings started to social life and started trading and exchanging goods, and it has always been the main task of the banking system. In this way, banks collected surplus deposits available to people, and by giving loans to people in need, they fulfilled their traditional role of mediating between depositors and borrowers. Usually, in the activities of a bank, attracting financial resources is of great importance, because success in this field can be a factor for success in other fields, since the attraction of financial resources for any bank and banking system depends on both external and internal factors. The factors within the organization are related, knowing these factors and the degree of influence of each of them is important and essential for success in this field.

Banks earn money through providing banking services to customers, in such a way that by attracting people's deposits with a low interest rate and granting facilities with a higher interest rate, and the result of the difference between the two rates is the bank's income, which is called profit and interest margin. Therefore, the more the bank can use economic scales, the greater the profit from this action will be.      

The question raised here is what economic variables affect the attraction of deposits? Are variables such as: national income, exchange rate, inflation and asset price index such as: semi-capital goods such as cars, housing and the price of gold coins effective on the volume of bank deposits? Are there effective factors in banking, such as advertising, the number of branches, the amount of facilities granted, etc. Do they affect bank deposits? And in case of influence, to what extent is the effect of each of the mentioned variables?

The profitability of banks is influenced by the internal factors that can be controlled by the bank management, or by the factors and economic conditions that govern the countries and the environmental factors that affect it.

In this collection, the effective factors in attracting bank resources that are influenced by internal factors that can be controlled by management are studied.

1-2- Statement of the problem

Although factors such as the industrialization of societies, expansion and transformation in social activities and as a result the emergence of new needs are important and effective factors in the creation and expansion of financial institutions, but economic development and progress are also one of the most important factors in the expansion and transformation of these institutions. In fact, financial institutions have been formed to facilitate the progress of other economic institutions, and therefore it can be said that the existence of advanced financial institutions and markets along with the use of modern methods is directly related to the degree of development of a country (Razani, 2012). One of the most important factors in the economic growth and development of countries, especially developing countries including Iran, is the formation of financial and physical capital, and it can be claimed that banks and financial and credit institutions are among the most important institutions in attracting funds. capital and its transfer to economic sectors. In this situation, attracting more financial resources and effective competition in attracting these resources by different banking groups is one of the issues that has been and still is the attention of financial and credit institutions. Of course, although immediately after the revolution, with the elimination of private banks, all banking groups were managed under the supervision of the government, but they have more or less competed with each other in attracting more financial resources. Nowadays, apart from the competition between the existing public and private banking groups, the creation of new private banks, new financial and credit institutions, as well as the expansion of the scope of activities of Qarz al-Hasneh institutions have also become more important and therefore they have competed in the country's banking system in attracting financial resources (Razani, 2012).

Currently, in this situation, examining the factors influencing the attraction of financial resources in Refah Bank Group in Isfahan, as well as introducing more effective strategies for attracting financial resources can be a beacon for the future for greater efficiency and more effective competition. The efficiency of this banking group should be raised. 1-3- The importance and necessity of research In today's world, the importance of attracting financial resources is so important and vital for banks that it has created a very fierce competition in this field between them. One of the main reasons is to provide new services such as bank phone, fax bank, smart cards, and also to establish branches outside the mainland or to use advanced technologies such as ATMs and credit cards, etc., to gain confidence and attention and to encourage more people to deposit in banks. In this direction and during the last few decades, new areas have been created to attract more banking resources and provide better and faster services to customers.

Attracting resources and deposits with banks is important in two ways: First, the money that people entrust to banks increases the lending power of banks, and therefore banks can provide more new loans for production and investment purposes from the collected savings. The second importance of increasing people's deposits with banks is that when people prefer to keep their money with banks and do less to spend it, the amount of money in circulation is reduced, which reduces the inflation rate and, as a result, increases the purchasing power of the people. These factors have caused banks to encourage people to visit them and make deposits in various ways, thus contributing to the country's economic prosperity (Spanalo, 1383). On the other hand, the provision of monetary resources started from the very beginning when mankind began to live a social life and began to trade and exchange goods, and it has always been the main task of the banking system. By giving loans to needy people, they fulfill their traditional role of mediating between depositors and borrowers. Nowadays, financial institutions and banks need fundamental changes in their products and services in order to mobilize financial resources, and they cannot mobilize resources in the global arena with simple services and the traditional structure of banking and mediation. Therefore, it is necessary to make optimal use of these resources by examining the dimensions and factors affecting the attraction of banking resources.