Luận văn thạc sĩ UEH factors influencing customer retention some emprical evidences from local and foreign banks in ho chi minh city

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Quang Minh Factors Influencing Customer Retention Some Empirical Evidences from Local and Foreign Banks in Ho Chi Minh City MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2015 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Quang Minh Factors Influencing Customer Retention Some Empirical Evidences from Local and Foreign Banks in Ho Chi Minh City ID: 22130039 MASTER OF BUSINESS (Honours) SUPERVISOR: DR LE NGUYEN HAU Ho Chi Minh City – Year 2015 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ABSTRACT INTRODUCTION 1.1 Research background 1.2 Research questions and research objective 1.3 Research delimitation 1.4 Thesis Structure LITERATURE REVIEW 2.1 Theoretical review 2.1.1 Customers retention 2.1.2 Relationship quality 2.1.3 Switching barriers 2.1.3.1 Relational benefits 2.1.3.2 Switching costs 10 2.1.3.3 Availability and attractiveness of alternatives 10 2.2 Hypotheses Development 11 2.2.1 Customer satisfaction and customer retention 11 2.2.2 Trust and customer retention 13 2.2.3 Commitment and customer retention 14 2.2.4 Switching barriers and customer retention 16 2.3 Research Model 18 METHODOLOGY 21 3.1 Research design 21 3.2 Measurement scales 22 3.3 Method of data collection 24 3.3.1 Sample size 24 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3.3.2 Method of data collection 25 3.4 Data analysis method 26 3.4.1 Assessment of measurement of scale 26 3.4.2 Multiple Regressions 27 DATA ANALYSIS AND RESULT 28 4.1 Sample characteristics 28 4.2 Assessment of measurement scales 29 4.2.1 Cronbach Alpha 29 4.2.2 Exploratory factor analysis 32 4.2.2.1 EFA for independent factors 32 4.2.2.2 EFA for dependent factors 34 4.3 Hypothesis testing 35 4.3.1 Testing relationship of independent factors & dependent factor 35 4.3.2 Testing Assumption of multiple Regressions 37 4.3.3 Evaluate and test the relevance of the model 41 4.4 Comparing foreign banks and local banks 43 IMPLICATION AND CONCLUSION 46 5.1 Summary 46 5.2 Conclusion 47 5.3 Recommendation 49 5.4Limitation and further research directions 51 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APPENDIX 1: EFA RESULT FOR FIRST TIME RUNNING 73 APPENDIX 2: EFA RESULT FOR SECOND TIME RUNNING 74 APPENDIX 3: KMO & BARTLETT‟S TEST FOR THIRD TIME RUNNING 75 APPENDIX 4: EFA FOR INDEPENDENT FACTOR 76 APPENDIX 5: MULTIPLE REGRESSION 77 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 1: Research model 19 Figure 2: Research process 21 Figure 3: Revised research model 37 LIST OF TABLES Table 3.1: Summary of scales for constructs in the model 23 Table 4.1: Sample characteristic 28 Table 4.2: Reliability Analysis 30 Table 4.3: Revised Reliability Analysis 32 Table 4.4: EFA result for independent factors 33 Table 4.5: EFA result for dependent factor 35 Table 4.6: Result of Pearson Correlation 35 Table 4.7: Hypothesis testing result 38 Table 4.8: Multiple Regressions results of Customer retention to independent 41 Table 4.9: Conclusion 42 Table 4.10: Comparing factors between local banks and foreign banks 44 Table 4.11: Relationship between Respondents‟ Likelihood of Staying and Bank 45 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Customer retention is an important element of any banking strategy in today‟s increasingly competitive environment To achieve the customer retention strategy, some elements are examined Among of them are relationship quality and switching barriers Relationship quality is often seen as the key factor for business building a successful and long-term relationship In the context of high competitive market place nowadays, relationship quality is often viewed as a central determinant of customer retention However, the few empirical investigations in this area indicate that relationship quality is only a necessary condition, not enough to keep customer stay with the business One more factor is given to discuss in this study is switching barriers Together with relationship quality, we explore how switching barriers help the services suppliers keep their existing customers from changing to another competitor This research examined these factors in the context of banking industry in Vietnam, a developing country with penetration of many foreign banks through the process of integrate WTO Customers nowadays have many options to choose which bank they want to cooperate Therefore, both foreign banks and local banks have to develop their strategies to retain their customers and increase their advantages LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION This chapter provides a background of information on the present study and its objectives and purposes It is divided into four sections The first section presents background of the research, the second part presents the problem statement and its objectives, and the third part presents the scope of study and the final part present the thesis structure 1.1 Research Background In today‟s highly competitive environment, losing customer is very costly Researcher concluded that it can be ten times more expensive to attract a customer than to retain an existing one, and the cost of bringing new customer to the level of profitability as the lost one is up to 16 times more (Lindgreen et al., 2000) Understanding thoroughly these difficulties, companies are more focusing their strategic effort on customer retention (Berry, 1983; Fornell, 1992) Many studies have been conducted for this issue, and many opinions have been explored for which factors influencing customer retention Obviously, a key component in any customer retention program is relationship quality (Oliver, 1997) Relationship quality can be defined as customers‟ perception of how well the relationship responds to his/her expectations, aims and demands (Jarvelin & Lehtinen, 1996) From that, they would consider about continuing or terminating with current suppliers There are many factors that constitute relationship quality After reviewing the empirical and theoretical literatures, we identified three elements which are commonly claimed to represent as significant components of perceived relationship quality: customer satisfaction (Hendrick, 1988), trust (Rempel, Holmes & Zanna, 1985) and commitment (Adams & Jones, 1997; Lund, 1985) However, for the purpose of keeping customer staying with business longer, the management need to consider other factors helping them to achieve that LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com objective In recent studies, switching barriers is a significant element should be mentioned Follow Jones et al (2000) switching barriers is any factor that makes it difficult or costly for customers to change supplier Thus, if company desires to develop long-lasting relationships with their customers, it is important for them to understand why dissatisfied customers may or may not switch to other suppliers and how the presence of switching barriers can affect the evaluation of service recovery effort (Yanamandram & White, 2006) In case, businesses know which dimensions are important to customer‟s decision about switching to competitors they can tailor their products to respond more specifically to customer needs Responding appropriately to customer needs mean that company is likely to retain more customers and build brand loyalty amongst existing customers Therefore, in an effort to preclude switching and harden long-term working relationships, business suppliers nowadays find many methods to make customers feel satisfied, reinforce their trust and commitment in customers‟ perception and strengthen exit barriers to effectively retain buyers This research is to identify the interaction effects of relationship quality and switching barriers to customers‟ awareness and decision We test our model in a continuous purchasing setting, the banking sector Banking industry is a modern services industry Especially, becoming a membership of World Trade Organization (WTO) requests Vietnam opening out to foreign investors as their liberalization requirements (Nguyen, 2008) Therefore, the number of foreign-owned financial institutions has been steadily increased Until now, foreign banks have been growth to 49 branches, which mostly concentrated in Ho Chi Minh city and Hanoi This is an impression number compared with 2007, the year Vietnam joined WTO, were foreign owned banks In this highly competitive banking market, foreign banks, however, are at an advantage in comparison with their Vietnamese counterparts They have better organizational structures, offer more professional services, and enjoy the network across many countries On the LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com other hand, local banks also have their own specific strength such as widespread braches, familiar with Vietnamese, and support from State Bank With more and more diversified customer‟s demand nowadays, banks have to renew themselves and find more effective solutions to attract new customers as well as retain the current ones That makes the competition between the local banks and foreign banks become more fierce and intensive to stand firm in competitive marker-place Researching about above factors and how they affect to customer retention greatly contributes to bank‟s strategy 1.2 Research question and research objective The objective of this study isto identify the effect of relationship quality and switching barriers on customer retention Particularly: - How many factors constituting relationship quality? How does each of them affect customer retention? - How many factors constituting switching barriers? How does each of them affect customer retention? - Which factor will influence customer retention most? 1.3 Research delimitation This study focuses on retail customers at local banks and foreign banks in Ho Chi Minh City The candidates for this research usually use banking services on routine life Young people under 18 years old who not have much income and can not make individual financial decisions are not chosen to be respondent Hence, this sample can not represent for Vietnam nationwide Furthermore, there are four factors including satisfaction, trust, commitment, and switching barriers being explored 1.4 Thesis structure This thesis is organized as follows: LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 63 Schurr, P H., & Ozanne, J L (1985) Influences on Exchange Processes: Buyers' Preconceptions of a Seller's Trustworthiness and Bargaining Toughness Journal of Consumer Research, 11 (3), 939-53 Schneider, B., & Bowen, D E (1999) Understanding Customer Delight and Outrage Sloan Marketing Review, 41 (1), 35-46 Sengupta, S., Krapfel, R E., & Pusateri, M A (1997) Switching costs in key account relationships Journal of Personal Selling & Sales Management, 17(4), 9-16 Sharma, N., & Patterson, P (2000) Switching costs in key account relationships International Journal of Service Industry Management, 11(5), 470-90 Storbacka, K., Strandvik, T., & Grönroos, C., (1994) Managing Customer Relationships for Profit: The Dynamics of Relationship Quality International Journal of Service Industry Management, 5(5), 21-38 Tabachnick, B G., & Fidell, L S (2001) Using Multivariate Statistics Boston: Allyn and Bacon Thomas, J S (2001) A methodology for linking customer acquisition to customer retention Journal of Marketing Research, 38(2), 262-8 Thomas, J S (2009) “Trust” in customer relationship: addressing the impediments in research Proceedings of Asia-Pacific Conference on Advances in Consumer Research, 346–349 Tsoukatos, E., & Rand, G K (2006) Path analysis of perceived service quality, satisfaction and loyalty in the Greek insurance Managing Service Quality, 16 Turnbull, P W (1990) A review of portfolio planning models for industrial marketing and purchasing management European Journal of Marketing, 24(3), 7-22 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 64 Va´zquez-Carrasco, R., & Foxall, G R (2006) Positive vsnegative switching barriers: the influence of service consumers‟ need for variety Journal of Consumer Behavior, 5(4), 367-79 Weinstein, A (2002) Customer-specific strategies-Customer retention: A usage segmentation and customer value approach Journal of Targeting, Measurement and Analysis for Marketing, 10, 259-268 Wirtz, B., & Lihotzky, N (2003) Customer retention management in the B2C electronic business Long Range Planning, 36(6), 517-532 doi:10.1016/ j.lrp.2003.08.010 Woo, K., & Ennew, C T (2004) Business-to-business relationship quality European Journal of Marketing, 38 (9/10), 1252-1271 Yanamandram, V., & White, L (2006) Switching barriers in business-to-business services: a qualitative study International Journal of Service Industry Management, 17(2), 158-92 Yau, O H M., McFetridge, P.R., Chow, R P M., Lee, J S Y., Sin, L Y M., & Tse, A C B (2000) Is relationship marketing for everyone? European Journal of Marketing, 34(9/10), 309- 566 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 65 QUESTIONNAIRE Hello everyone, My name is Nguyen Quang Minh, student in MBUS program of International School of Business (ISB) – University of Economic Ho Chi Minh city Currently, I am doing graduating thesis related to quality of banking services Your responses/ comments would be helpful information for my research Kindly take some minutes to finish this questionnaire All the response will be used for this research Thank you very much and best wishes for you PART 1: GENERAL INFORMATION Gender: ☐ Male Age ☐ 18-22 ☐ 23-29 ☐ 30-39 ☐ 40-49 ☐ >50 Level of education: ☐ High School graduated ☐ Female ☐ Bachelor degree ☐ Master or Doctor degree Number of banks using: ☐1 ☐2 ☐3 ☐ >=4 Your bank which you usually have transaction:……………………… ☐ Local bank ☐ Foreign bank LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 66 ☐ Joint venture bank ☐ Other: From now on, we will call this bank is Bank X There are some statements about bank X Depend on your evaluation, please choose the answer from totally disagree to totally agree by sticking (√) in the appropriated blank Totally disagree Disagree Neutral Agree Totally Agree PART 2: CUSTOMER’S FEEDBACK Your evaluation with banking services: Overall, I am happy with bank X Bank X meets my expectations I think I did the right thing when I joined bank X Your evaluation with banking reliability I have great confidence in bank X‟s services Promises made by bank X are reliable Bank X treats me in an honest way in every transaction Your feeling about bank X I take pleasure in being a customer of bank X Bank X is capable in providing banking service to me Bank X is the operator that takes the best care of their customers 10 There is a presence of reciprocity in my relationship with bank X 11 I have feelings of trust toward bank X LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 67 12 It would be too costly for me to leave Bank X, therefore I stay 13 One of the major reasons I continue to bank with Bank X is that leaving would require considerable personal sacrifice 14 I stay with Bank X because the costs of changing exceed the benefits Your obligation/ commitment with bank X Our attachment to bank X is mainly based on the similarity of our values 15 16 The reason I refer bank X to others is because of what it stands for, its value 17 What bank X stands for is important to me 18 I feel an obligation to remain with bank X 19 I owe a great deal to bank X The benefits bank X gave to you 20 Staying allows me to get discounts and special deals 21 Staying saves me money 22 23 Staying allows me to get extra service benefits Your consideration about changing banking services In general it would be a hassle changing banks 24 It would take a lot of time and effort changing banks 25 26 For me, the costs in time, money, and effort to switching banks are high If I switch to another bank, I am concerned about negative financial outcomes Your acknowledge about the alternatives 27 All banks are the same 28 I am not sure if other banks offer better services 29 Other banks not offer better services I know other banks offer better services but I prefer to stay with bank X 30 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 68 How likely is that you continue your relationship with bank X? 31 Within the next six months? 32 Within the next one year? 33 Within the next two years? Thank you for your feedback LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 69 PHIẾU KHẢO SÁT DỊCH VỤ NGÂN HÀNG Chào Anh/Chi, Tôi tên Nguyễn Quang Minh, học viên cao học ngành Quản Trị Kinh Doanh viện Đào Tạo Quốc Tế - trường Đại học Kinh Tế Tp HCM Hiện tơi làm luận văn thạc sĩ có liên quan đến chất lượng dịch vụ ngành ngân hàng Những ý kiến bạn thơng tin hữu ích giúp tơi hồn thành luận văn tốt Rất mong Bạn dành thời gian để trả lời Phiếu khảo sát Xin chân thành cám ơn chúc Bạn sức khỏe, thành công hạnh phúc! Lưu ý khơng có câu trả lời hay sai, tất ý kiến phản hồi có giá trị cho nghiên cứu PHẦN 1: THÔNG TIN TỔNG QUÁT Giới tính bạn: ☐ Nam ☐Nữ Độ tuổi: ☐18-22 ☐23-29 ☐30-39 ☐40-49 ☐>50 Trình độ học vấn: ☐Trung học ☐Phổ thông ☐Cao đẳng – Đại học ☐Sau đại học LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 70 Số lượng ngân hàng bạn sử dụng/ giao dịch: ☐1 ☐2 ☐3 ☐>=4 Ngân hàng bạn thường xuyên sử dụng/ giao dịch:………………… ☐Ngân hàng TMCP nước ☐Chi nhánh Ngân hàng nước ☐Ngân hàng Liên Doanh ☐Khác (Từ trở đi, gọi Ngân hàng X) Sau phát biểu ngân hàng X Tùy vào mức độ tán thành Bạn, xin đánh dấu (√) vào ô tương ứng từ hoàn toàn không đồng ý đến hồn tồn đồng ý: Hồn tồn khơng đồng ý Khơng đồng ý Trung dung Đồng ý Hoàn toàn đồng ý PHẦN 2: ĐÁNH GIÁ CỦA KHÁCH HÀNG Đối với dịch vụ ngân hàng X bạn sử dụng: Nhìn chung, tơi hài lịng với ngân hàng X Ngân hàng X đáp ứng mong đợi Tơi cho đắn lựa chọn ngân hàng X Độ tin cậy bạn với ngân hàng X Tôi tin tưởng vào dịch vụ ngân hàng X Những cam kết thực ngân hàng X đáng tin cậy xác thực LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 71 Ngân hàng X giỏi việc cung cấp dịch vụ cho khách hàng Ngân hàng X đối đãi với cách trung thực giao dịch Cảm nhận bạn ngân hàng X Tôi cảm thấy vui trở thành khách hàng ngân hàng X Ngân hàng X chăm sóc tốt cho khách hàng 10 Tơi ln ưu tiên đặt ngân hàng X lên đầu lựa chọn giao dịch 11 Tơi cảm thấy tin cậy ngân hàng X 12 Sẽ tốn cho việc chuyển giao dịch sang ngân hàng khác 13 Nhiều lợi ích cá nhân chuyển giao dịch sang ngân hàng khác, lý quan trọng khiến tơi lại 14 Chi phí chuyển đổi lớn lợi ích thu được, tơi tiếp tục giao dịch với ngân hàng X Nghĩa vụ bạn với ngân hàng X 15 Nguyên nhân khiến tơi thích ngân hàng X ngân hàng khác giá trị mà mang lại 16 Các giá trị mà ngân hàng X mang lại tương thích với kỳ vọng tơi 17 Các giá trị mà ngân hàng X mang lại quan trọng 18 Tôi tiếp tục giao dịch với ngân hàng X nghĩa vụ ký 19 Tơi cịn nợ ngân hàng X khoản lớn Những ưu đãi có bạn tiếp tục giao dịch với ngân hàng X 20 Tiếp tục trì giao dịch với ngân hàng giúp tơi có nhiều miễn giảm ưu tiên 21 Tiếp tục trì giao dịch với ngân hàng giúp tiết kiệm chi phí 22 Tiếp tục trì giao dịch với ngân hàng giúp tơi có nhiều khuyến dịch vụ đặc biệt Suy nghĩ bạn việc đổi dịch vụ ngân hàng 23 Tóm lại, việc thay đổi ngân hàng điều rắc rối LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 72 24 Thay đổi ngân hàng tốn nhiều thời gian công sức 25 Thời gian, chi phí cơng sức cho việc thay đổi dịch vụ ngân hàng cao 26 Nếu chuyển sang ngân hàng khác, lo lắng tổn thất tài có Nhận xét bạn ngân hàng khác thị trường 27 Dịch vụ ngân hàng giống giống 28 Tơi khơng ngân hàng khác có ưu đãi nhiều dịch vụ tốt hay không 29 Các ngân hàng khác khơng có nhiều dịch vụ tốt 30 Tôi biết ngân hàng khác ưu đãi nhiều dịch vụ tốt hơn, tơi thích giao dịch với ngân hàng X Bạn dự định tiếp tục trì dịch vụ ngân hàng vòng: 31 tháng 32 năm 33 năm Xin chân thành cám ơn chúc Bạn sức khỏe, thành công hạnh phúc! LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 73 APPENDIX 1: EFA RESULT FOR FIRST TIME RUNNING Rotated Component Matrixa Cus1 767 Cus2 Cus3 754 744 Emc8 Emc9 649 643 787 776 Noc17 Emc10 739 599 Swc23 Swc24 845 826 Swc25 Reb20 748 Reb22 Reb21 770 764 657 Aaa28 Aaa29 873 774 Aaa27 Cam12 754 Cam14 Cam13 472 Noc15 Noc16 417 Component 706 703 616 Trt4 Trt5 840 783 Trt6 457 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 74 Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Approx Chi-Square Sphericity df 868 2478.031 276 Sig .000 APPENDIX 2: EFA RESULT FOR SECOND TIME RUNNING Rotated Component Matrixa Swc24 837 Swc23 Swc25 794 782 Cam12 Cam14 548 463 Component 414 Aaa28 Aaa29 839 786 Aaa27 Cam13 755 Noc16 Noc15 823 817 Noc17 Reb22 786 Reb20 Reb21 769 769 642 Cus3 Cus2 782 746 Cus1 Trt5 711 818 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 75 Trt4 Trt6 705 569 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization APPENDIX 3: KMO & BARTLETT’S TEST FOR THIRD TIME RUNNING KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Approx Chi-Square Sphericity df Sig 1799.624 153 000 Component Extraction Sums of Squared Loadings Initial Eigenvalues Cumulative % 836 Total % of Variance Total %of Variance Cumulative % 6.095 33.863 33.863 6.095 33.863 33.863 2.137 11.871 45.734 2.137 11.871 45.734 1.719 9.550 55.284 1.719 9.550 55.284 1.368 7.600 62.884 1.368 7.600 62.884 1.087 6.038 68.922 1.087 6.038 68.922 1.009 5.604 74.527 1.009 5.604 74.527 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 76 Appendix 4: EFA FOR INDEPENDENT FACTOR KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Approx Chi-Square Sphericity df 610 212.359 Sig .000 Total Variance Explained Extraction Sums of Squared Loadings Initial Eigenvalues Compon ent Total % of Variance Cumulative % 2.112 70.400 70.400 629 20.956 91.357 259 8.643 100.000 Extraction Method: Principal Component Analysis Total 2.112 % of Variance 70.400 Cumulative % 70.400 Component Matrixa Component Ret32 916 Ret31 835 Ret33 760 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 77 APPENDIX 5: MULTIPLE REGRESSION Model Summary Model R R Square 806a Adjusted R Square 649 Std Error of the Estimate 638 41422 a Predictors: (Constant), TR, SW, AA, RE, CM, CS ANOVAb Sum of Squares Model Mean Square df F Regression 61.887 10.315 Residual 33.457 195 172 Total 95.344 201 Sig 60.117 000a a Predictors: (Constant), TR, SW, AA, RE, CM, CS b Dependent Variable: RT Coefficientsa Unstandardized Coefficients Model B (Constant) 223 Std Error Standardized Coefficients Beta 281 Collinearity Statistics t Sig .794 428 Tolerance VIF CS 549 054 568 10.214 000 582 1.718 CM 052 053 054 991 323 610 1.639 SW 085 038 106 2.248 026 814 1.228 RE 153 047 178 3.284 001 614 1.628 AA -.100 042 -.108 -2.381 018 869 1.150 TR 036 061 031 591 555 654 1.530 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... ECONOMICS HO CHI MINH CITY International School of Business Nguyen Quang Minh Factors Influencing Customer Retention Some Empirical Evidences from Local and Foreign Banks in Ho Chi Minh. .. smart and profitable customer retention strategy to keep their existing customers and making more profit from them (Weinstein, 2002) The main factors influencing customer? ??s selection of a bank include... supported in B2B relationship than B2C 4.4 Comparing local banks and foreign banks This research was examined based on the information from customers who had accounts with local banks and foreign banks