Research Paper Online Banking

Results show that a strong relationship through internet banking to the bank performance in the Euro Area countries and for the rest of the Euro Area countries are also not determined causation significantly in both directions. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of Istanbul Univeristy. Keywords: Internet banking, bank performance, panel casuality tests. Introduction It is increasingly difficult to go immediately to any branch of the bank for each type of transaction for the bank customers because of active business and contemporary city life.On the other hand, there is also a significant relationship internet banking to performance of the bank considering the whole sample. Internet banking and the mobile banking applications that are an extension of Internet banking have virtually eliminated customers' space and time commitment. E-mail address: [email protected] 1877-0428 © 2015 The Authors. This is an open access article under the CC BY-NC-ND license (Internet banking is to make increase the asset quality of banks and affect directly ROA performance (Kagan et al., 2005). The impact of Internet banking on bank performance and risk: The Indian experience. Journal of Information Technology Case and Application Research, 4(3), 8-37.

Results show that a strong relationship through internet banking to the bank performance in the Euro Area countries and for the rest of the Euro Area countries are also not determined causation significantly in both directions. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of Istanbul Univeristy. Keywords: Internet banking, bank performance, panel casuality tests. Introduction It is increasingly difficult to go immediately to any branch of the bank for each type of transaction for the bank customers because of active business and contemporary city life.

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The tendency of banks to the internet banking has three basic factors such as cost advantages, high profitability and low risk.

Studies show that the initial setup costs of internet banking investment will be provided and realized profits in the short time if there is enough demand for internet banking.

It is showed that internet banking is more contribution to the performance of the bank when compared to traditional branch banking and improve competition in the sector. ROA, ROE, commission and fee income and stock returns are affected positively the internet banking activity (Hasan, 2002, was Ciciret et al., 2009).

There is a significant relationship between internet banking and operational risks.

It is also observed that less expenses fulfilled to fixed assets, high deposit volume and less branches of large-scale private banks tended to internet banking and generally aimed to increase low market share. How has the adoption of Internet banking affected performance and risk in banks?

On the other hand, banks accelerate to tendency to internet banking when rivals start internet banking (Malhotra and Singh, 2007). A simple panel unit root test in the presence of cross-section dependence. Pigni, F., Ravarini, A., Tagliavini, M., & Vitari, C. Bank strategies and the Internet: An interpretation of the banking industry on the Italian retail market. Federal Reserve Bank of Kansas City, Financial Industry Perspectives, 1-16. Available online at Direct Procedia - Social and Behavioral Sciences 195 (2015) 363 - 368 World Conference on Technology, Innovation and Entrepreneurship Interaction Between Internet Banking and Bank Performance: The Case of Europe K.Batu Tunaya*, Necla Tunayb, ilyas Akhisara,b a Banking Department, Institute of Banking and Insurance, Marmara University, Istanbul, Turkey b Insurance Department, Banking and Insurance School, Marmara University, Istanbul, Turkey a,b Actuary Department, Banking and Insurance School, Marmara University, Istanbul, Turkey Abstract In this study, the interaction between internet banking and bank performance is investigated by panel causality tests.Gutu (2014) even determined that banks position did not changed inspite of depositing on higher advertising budget for internet banking.This shows us that customers still demand the traditional branch-based banking services in these countries.In addition, internet banking reducing impaired loans of banks and risk of volatility of stock returns (Hassan, 2002).On the other hand, the banks are described as innovative bank, whose costs are below the industry average, which used internet banking and other electronic banking applications (Pigni et al., 2002).Empirical studies on various countries reveal that internet banking increases performance of the bank.Internet banking provides significant advantages to banks as well as customers' demand has played a very important role in spreading of internet.Internet banking and other electronic banking services decrease average operational costs on banks tolerating physical overhead expenses (De Young, 2001). Determinants of Internet banking adoption by banks in India. Here is the great importance of the electronic infrastructure used by banks.