Commercial banks in Saudi Arabia Dissertation Example | Topics and Well Written Essays - 4000 words

Commercial banks in Saudi Arabia - Dissertation Example However, besides improvement of an economy, it is very important that commercial banks must look into their internal aspects and ensure fulfilment of their own objectives that is to achieve profitability that is the foremost and basic objective of every commercial organization around the globe. In this regard, while commercial banks play an imperative role in a country’s economy, they put efforts to ensure their own sustainability, as well as environmental sustainability that subsequently results in their own profitability. In this regard, there exist various determining factors that decide profitability of banking institutions, especially commercial banking organizations and it is important to analyze such factors. Significance In particular, it is an observation since the period of recession, a huge number of banking organizations are confronting problems in ensuring their profitability, and thus, outcomes of the proposed research will be effective in understanding different factors that play a crucial role in ensuring profitability in commercial banks. In addition, results of the proposed research will enable banking students to acquire a critical perspective of different processes of commercial banking that cause success or failure in terms of profitability, and therefore, understanding of the proposed research’s outcomes will be very significant in eliminating any adverse factors from the processes. At the same time, it will allow the potential bankers to give significance to factors that play a noteworthy role in guaranteeing profitability in the commercial banking industry. Research Objectives Before carrying out research, it is very imperative that the researcher ensures clarified understanding of aims and objectives, as it is an observation that vague objectives often result in unproductive outcomes, and thus, the research proposal will now include aims and objectives of the proposed research: Identify and examine different internal and e xternal factors that play a crucial role in affecting the profitability of commercial banking organizations Scrutinize the extent of impact of such factors in different banking processes Study the effects of identified factors in the case study of a commercial banking organization in Saudi Arabia Identify and recommend strategies that may ensure positive impact of studied factors on profitability of commercial banks, specifically, in the corporate culture of Saudi Arabia Research Statement In this regard, the researcher will focus on the following research statement to fulfill the aims and objectives of the research: â€Å"To identify and analyze the factors that affect profitability of commercial banks, specifically, in Saudi Arabia† LITERATURE REVIEW Commercial banks are a key aspect in the financial growth as well as stability of nations. They are the main providers of funding for development ventures, credit and services for business dealings. They as well have an effect on money supply within the financial system through lending practices. Commercial banks in Saudia have shown record financial performance during the last five years, along with impressive economic development. The challenge for banking industry is to launch inventive ways in its functions leading to better financial