Academic literature on the topic 'Capital Adequacy Ratio (CAR) and Liquidity'
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Journal articles on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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Saputro, Kurniawan Yogi, and Arini Wildaniyati. "Pengaruh Dana Pihak Ketiga, Capital Adequacy Ratio (CAR), dan Non Performing Financing (NPF) Terhadap Likuiditas Perbankan Syariah Di Indonesia Tahun 2015-2019." JURNAL EKOMAKS Jurnal Ilmu Ekonomi Manajemen dan Akuntansi 10, no. 1 (2021): 14–19. http://dx.doi.org/10.33319/jeko.v10i1.83.
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Abstract— This study aims to determine the effect of Third Party Funds on Liquidity, the effect of Capital Adequacy Ratio (CAR) on Liquidity, the effect of Non Performing Financing (NPF) on Liquidity, and the influence of Third Party Funds, Capital Adequacy Ratio (CAR), and Non Performing Financing ( NPF) against Liquidity. The sampling technique used was purposive sampling technique. The data obtained comes from secondary data in the form of banking annual financial reports for 2015-2019 which are downloaded from the official website of the bank concerned. Data analysis was performed using descriptive statistics, classical assumption test, multiple linear regression analysis, determinant coefficient test, t test and F test. The results of the hypothesis research indicate that the Third Party Funds variable is 0,000, the Capital Adequacy ratio (CAR) variable is 0.013, the variable NonPerforming Financing is 0.196, and simultaneously is 0.000. With these results it can be stated that only Third Party Funds, Capital Adequacy Ratio (CAR) have a positive and significant effect on Liquidity, while Non Performing Financing (NPF)  has no positive and significant effect on liquidity. Simultaneously, Third Party Funds, Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), have a positive and significant effect on liquidity. Keywords—: Third Party Funds; Capital Adequacy Ratio, Non Performing Financing, and Liquidity.
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DedyDwi, Arseto, Chaniago Sabaruddun, Soemitra Andri, IskandarMuda, and Sugianto. "The Effect of Capital Adequacy Rasio (CAR) and Liquidity on Profitability of Islamic Comercial Banks in Indonesia for The 2015- 2019 Period." International Journal of Multidisciplinary Research and Analysis 05, no. 01 (2022): 24–31. https://doi.org/10.47191/ijmra/v5-i1-04.
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This study aims to determine how the Effect of Capital Adequacy Ratio (CAR) and Liquidity on Profitability of Islamic Commercial Banks in Indonesia for the 2015-2019 Period. The results of data processing using the SPSS 17 For Windows program resulted in multiple regression analysis with two independent variables and one dependent variable showing that Y = 1.108 +1.404X1 - 0.240 X2, meaning that profitability is influenced by Capital Adequacy Ratio (CAR) and Liquidity. Furthermore, the results show that the Capital Adequacy Ratio (CAR) and Liquidity variables can explain the Profitability variable 36%, the remaining 64% is explained by other variables. The results of the hypothesis test state that: Hypothesis 1 is accepted, this can be seen from the value of tcount>ttable, then the Capital Adequacy Ratio (CAR) has an effect on profitability. The second hypothesis is rejected, it can be seen from the value of tcountFtable, it is stated simultaneously that Capital Adequacy Ratio (CAR) and Liquidity have an effect on Profitability.
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Arseto, Dedy Dwi. "The Effect of Capital Adequacy Ratio (CAR) and Liquidity on Profitability of Islamic Commercial Banks in Indonesia for the 2016-2020 Period." Jurnal Ilmiah Ekonomi Islam 8, no. 1 (2022): 909. http://dx.doi.org/10.29040/jiei.v8i1.4377.
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This study aims to determine how the Effect of Capital Adequacy Ratio (CAR) and Liquidity on the Profitability of Islamic Commercial Banks in Indonesia for the 2016-2020 period. The results of data processing using the SPSS 17 For Windows program resulted in multiple regression analysis with two independent variables and one dependent variable showing that Y = 2.108 + 1.380CAR + 0.158CR, meaning that profitability is influenced by the Capital Adequacy Ratio (CAR) and Liquidity. Furthermore, the results show that the Capital Adequacy Ratio (CAR) and Liquidity variables can explain the Profitability variable 41%, the remaining 58% is explained by other variables. The results of the hypothesis test state that: Hypothesis 1 is accepted, this can be seen from the value of tcount > ttable, therefore the Capital Adequacy Ratio (CAR) has an effect on profitability. The second hypothesis is rejected, it can be seen from the value of tcount < ttable, it is stated partially that Liquidity has no effect on Profitability. Hypothesis 3 is accepted, it can be seen from the value of Fcount > Ftable, it is stated simultaneously that Capital Adequacy Ratio (CAR) and Liquidity have an effect on Profitability.
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Keqa, Flamur. "The determinants of banks’ capital adequacy ratio: Evidence from Western Balkan countries." Journal of Governance and Regulation 10, no. 2, special issue (2021): 352–60. http://dx.doi.org/10.22495/jgrv10i2siart15.
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This research aims to evaluate the impacts of liquidity, profitability, size, loans and capital structure on banks’ capital adequacy ratio (CAR) in the Western Balkan region using annual data from 103 commercial banks operated in Western Balkan countries for the period between 2010 and 2018. Panel data fixed effect method is employed. The data comprises of a total 51 observations for panel least squares. The empirical findings obtained panel data regression show that profitability proxies by the return on asset (ROA) have the largest impact on CAR among other financial ratios. In addition, liquidity and size have statistically significant positive effects in determining capital adequacy ratio for the banks in the region, unlike leverage ratio. However, the leverage ratio has a negative impact on the capital adequacy ratio. The policy implications of this study suggest that in order to accomplish requirements for capital adequacy expectations are to have good indicators in regard to performance, liquidity and size.
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Pradnyani, I. Gusti Agung Arista, Ni Luh Putu Widhiastuti, and I. Gusti Agung Ayu Pramita Indraswari. "Menelisik Efek Capital Adequacy Ratio dan Loan to Deposit Ratio terhadap Profitabilitas Perbankan." SPESIMEN 1, no. 3 (2024): 7–14. https://doi.org/10.5281/zenodo.12598456.
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Profitabilitas merupakan kemampuan perusahaan untuk menghasilkan laba dalam kaitannya dengan penjualan, total aset atau modal sendiri. Penelitian ini bertujuan untuk menguji pengaruh <em>Capital Adequacy Ratio</em> (CAR) dan <em>Loan to Deposit Ratio</em> (LDR) pada Profitabilitas. Populasi dalam penelitian ini adalah Perusahaan Perbankan di BEI periode 2018-2021, dengan metode <em>purposive sampling</em> sehingga diperoleh jumlah sampel sebanyak 8 Bank sehingga sampel dalam penelitian ini sebanyak 32. Teknik analisis data yang digunakan adalah analisis regresi linier beganda. Hasil penelitian menyatakan bahwa rasio CAR berpengaruh positif pada Profitabilitas, sedangkan LDR tidak berpengaruh pada Profitabilitas. Penelitian di masa depan dapat memasukkan faktor-faktor tambahan termasuk <em>Non Performing Loan</em> (NPL), Biaya Operasional terhadap Pendapatan Operasional (BOPO), Suku Bunga BI (<em>BI Rate</em>), dan Ukuran Perusahaan.
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Perdana, Djaja, and Hermala Kusumadewi. "Tingkat Solvabilitas Perbankan Indonesia Dalam Konteks Pemenuhan Ketahanan Likuiditas." Jurnal Riset Akuntansi dan Keuangan 9, no. 1 (2021): 193–208. https://doi.org/10.17509/jrak.v9i1.27946.
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Abstract: Bank liquidity has become a serious concern of the government with the issuance of a regulation requiring banks in Indonesia to meet the liquidity coverage ratio (LCR). However, efforts to build liquidity resilience have resulted in banks having to make adjustments to their capital structure so that they are suspected of having an influence on their solvency. This study investigates the effect of the level of liquidity on the level of solvency of Indonesian banks, which is proxied by the level of capital ratios and debt ratios during the 2013-2019 period using banking data listed on the Indonesia Stock Exchange. The results of this study prove that the liquidity variable proxied by the loan-to-asset ratio (LAR) has a negative effect on the capital adequacy ratio (CAR) but has a positive effect on the debt-to-asset ratio (DAR). Meanwhile, the liquidity estimated by the current ratio (CR) does not affect the capital adequacy ratio (CAR) but has a negative effect on the debt-to-asset ratio (DAR).Abstrak: Aspek likuiditas bank telah menjadi perhatian serius pemerintah dengan dikeluarkannya peraturan yang mewajibkan bank di Indonesia untuk memenuhi liquidity coverage ratio (LCR). Namun upaya membentuk ketahanan likuiditas tersebut mengakibatkan bank harus melakukan penyesuaian struktur permodalannya sehingga diduga memiliki pengaruh terhadap solvabilitasnya. Penelitian ini melakukan investigasi pengaruh tingkat likuiditas terhadap tingkat solvabilitas perbankan Indonesia yang diproksikan dengan tingkat capital ratio dan debt ratio selama periode 2013-2019 dengan menggunakan data perbankan yang terdaftar di Bursa Efek Indonesia. Hasil penelitian ini membuktikan bahwa variabel likuiditas yang diproksikan dengan loan-to-asset ratio (LAR) berpengaruh negatif terhadap capital adequacy ratio (CAR) tetapi berpengaruh positif terhadap debt-to-asset ratio (DAR). Sedangkan likuiditas yang diestimasi dengan current ratio (CR) tidak berpengaruh terhadap capital adequacy ratio (CAR) tetapi berpengaruh negatif terhadap debt-to-asset ratio (DAR)
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Hafez, Hassan M., and Osama A. El-Ansary. "Determinants of capital adequacy ratio: an empirical study on Egyptian banks." Corporate Ownership and Control 13, no. 1 (2015): 1166–76. http://dx.doi.org/10.22495/cocv13i1c10p4.
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Capital adequacy rules are safety valve for regulators and banks’ clients/shareholders to reduce expected risks faced by commercial banks especially for cross border transactions as these rules are applied compulsory by all banks internationally. Applying these rules will achieve rational management and governance. This paper examines explanatory victors that influence capital adequacy ratio (CAR) in the Egyptian commercial banks. The study covers 36 banks during the period from 2003-2013. We examined the relationship between CAR as dependent variable and the following independent variables: earning assets ratio, profitability, and liquidity, Loan loss provision as measure of credit risk, net interest margin growth, size, loans assets ratio and deposits assets ratio. Furthermore, we investigate determinants of CAR before and after the 2007-2008 international financial crises. Results vary according to the period understudy. For the whole period 2003 to 2013 results show that liquidity, size and management quality are the most significant variables. Before the period 2008 results show that asset quality, size and profitability are the most significant variables. After the period 2009 results show that asset quality, size, liquidity, management quality and credit risk are the most significant variable that explain the variance of Egyptian banks’ CAR.
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Syafina, Laylan. "LIQUIDITY DETERMINANTS OF SHARIA COMMERCIAL BANKS IN INDONESIA." International Journal of Economic, Technology and Social Sciences (Injects) 2, no. 1 (2021): 13–20. http://dx.doi.org/10.53695/injects.v2i1.175.
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This research aims to determine whether the Capital Adequacy Ratio (CAR), Return on Assets (ROA), Return On Equity (ROE) and Firm Size partially and simultaneously affect liquidity as stated by the Financing to Deposit Ratio (FDR). This type of research is quantitative with a descriptive approach. The data analysis technique used SPSS 22 software. The tests in this study were the classical assumption test, multiple regression analysis, and hypothesis testing. The results showed that partially the Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Return On Equity (ROE) had no effect on the Financing to Deposit ratio (FDR) while Firm Size partially had a negative and significant effect on Financing. to Deposit ratio (FDR). Simultaneously, Capital Adequacy Ratio (CAR), Return on Assets (ROA), Return On Equity (ROE), and Firm Size have a joint and significant influence on the Financing to Deposit ratio (FDR).
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Utami, Mayvina Surya Mahardhika, and Muslikhati Muslikhati. "Pengaruh Dana Pihak Ketiga (DPK), Capital Adequacy Ratio (CAR), Non Performing Financing (NPF) terhadap Likuiditas Bank Umum Syariah (BUS) Periode 2015-2017." Falah: Jurnal Ekonomi Syariah 4, no. 1 (2019): 33. http://dx.doi.org/10.22219/jes.v4i1.8495.
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This research present to analyze the Third Party Fund (DPK), Capital Adequacy Ratio (CAR), Non Performing Financing (NPF) to liquidity in Islamic Bank as a whole. The period used in this study is 2015 to 2017. This research type and uses an approach to not exist or not based on one or more variables. The variables in this research are Third Party Fund (DPK), Capital Adequacy Ratio (CAR), Non Performing Financing (NPF). While the dependent variable in this research is liquidity at Sharia Commercial Bank. The data used is secondary data from webside BI and OJK, while the data analysis technique is Multiple Regression Analysis. The results of this study indicate that the variable of Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Non Performing Financing (NPF) simultaneously have a significant influence on the level of liquidity. While partially DPK and NPF have a significant influence, whereas CAR has no significant effect.
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Carindri, Fransisca, and Untara. "THE EFFECT OF RISK, PROFITABILITY, AND LIQUIDITY ON CAPITAL ADEQUACY." Journal of Business Economics 24, no. 1 (2019): 36–50. http://dx.doi.org/10.35760/eb.2019.v24i1.1854.
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The purpose of this research was to determine the effect of partial Non Performing Loan (NPL), Risk Index (ZRISK), Return on Assets (ROA), Net Interest Margin (NIM), Loan to Deposit Ratio (LDR) and Loan to asset Ratio (LAR) to the Capital Adequacy Ratio (CAR) on banking companies listed on the Stock Exchange. The research population was banking companies listed in Indonesia Stock Exchange during the three (3) year period from 2010 to 2012. The sample used in this research was determined using purposive sampling technique in which there are 29 companies that meet the criteria for sample selection. The analysis technique used is multiple linear regression and the processing of the data using SPSS v15.0. The results showed that the ROA, LDR, and LAR have no significant effect on CAR. While the NPL, Risk Index and NIM have a significant effect on CAR. Predictive ability of the six independent variables on CAR was at 32.9 % while the remaining 77.1 % is influenced by other factors not included in the regression model. Keyword: Risk, Profitability, Liquidity, Capital Adequacy
Dissertations / Theses on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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Saxena, Shveta, and Saideh Mousavi. "Basel II- Behöver regelverket modifieras? : En empirisk studie om riskhantering i en liten bank och en stor bank i Sverige." Thesis, Södertörn University College, School of Business Studies, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-3869.
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Andrianova, Anna. "Vývoj bankovnictví na Ukrajině v období současné krize." Master's thesis, Vysoká škola ekonomická v Praze, 2016. http://www.nusl.cz/ntk/nusl-264141.
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In my thesis I analyse the development of the banking system of Ukraine and the assessment of the concentration level of the banking system in conditions of crisis 2014-2015. The theoretical part is devoted to classification and causes of the banking crisis; also, it describes the historical aspects of crisis formation in Ukraine. The practical part is focused on the evaluation of the financial security level and macroeconomic situation in Ukraine. This part emphasises problems and the specifics of functioning of domestic banks. In addition, it considers the concentration level of the banking market. The analysis performed shows that the banking crisis is the result of accumulated macroeconomic imbalances of the past and present mistakes in the implementation of anti-crisis policy. Currently the efficient functioning of most domestic banks remains at insufficient level.
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Msahazi, Abdillah. "La préservation du système bancaire par la régulation : l'exemple du système bancaire comorien." Thesis, Paris 5, 2014. http://www.theses.fr/2014PA05D012.
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Cette Thèse de sciences de gestion, se propose d’élucider les difficultés que rencontrent les acteurs du système bancaire comorien et apporter des solutions afin de lui garantir sa solidité, stabilité et enfin sa pérennité. Elle est divisée en deux parties. La première porte plus particulièrement sur le cadre national et internationale du système bancaire comorien. La deuxième met en évidence les banques comoriennes confrontées à la transparence financière et aux exigences de supervision prudentielle. Le premier titre de la première partie, tâche à mettre en lumière l’organisation actuelle du système bancaire comorien inspiré du modèle français (chapitre 1) et l’apport du développement récent de la finance islamique (chapitre 2) afin de combler le retard de la banque conventionnelle. La réorganisation de la Banque Centrale des Comores et la mise en place de la banque islamique locale, peuvent contribuer au changement radical du système bancaire comorien. Le deuxième titre, permet au régulateur et prêteur en dernier ressort (Banque Centrale des Comores) de prendre le modèle des normes prudentielles internationales proposées par le Comité de Bâle (Bâle II et III), pour réguler le système bancaire comorien afin de lui garantir sa solidité, stabilité et enfin sa pérennité (chapitre 1). A travers ces recommandations du comité de Bâle, nous avons apporté des solutions en élaborant la Matrice Msahazi Credit Scoring Corporation, destinée aux analyses des données des banques comoriennes contre un risque endogène (Chapitre2). Nous avons aussi élaboré d’autres matrices que les banques comoriennes se serviront pour la notation interne, des risques de contreparties (entreprises et particuliers) afin de lutter contre le risque exogène. La deuxième partie de cette Thèse suggère deux autres solutions : la première est l’exigence de transparence financière des banques comoriennes (Pilier 3 : Bâle2 et 3) afin de lutter contre les malversations financières orchestrées par certains agents (titre I). Le premier chapitre introduit l’objectif de la communication financière de manière générale et la manière dont le comité de Bâle (Bâle 2 et 3) recommande les banques de communiquer leurs informations financières (méthodes d’évaluations des risques et fonds propres). Le deuxième chapitre propose aux banques comoriennes et aux autorités de contrôles, les techniques de notation financière pratiquées au niveau internationale pour distinguer le niveau de solvabilité de la contrepartie. La deuxième solution, nous avons donné à la Banque Centrale des Comores, des techniques pour renforcer la supervision prudentielle (Pilier 2, Bâle 2 et 3), (titre II). Le premier chapitre exige d’une part la direction et le conseil d’administration de la banque de définir les techniques de contrôles, d’indentifications, d’évaluations, gestions des risques et les objectifs de fonds propre à atteindre. D’autre part, l’autorité de contrôle (Banque centrale des Comores) doit passer au crible tous ces outils de contrôle. Au deuxième et dernier chapitre de la recherche, nous avons proposé à la Banque Centrale des Comores des nouvelles méthodes de supervision prudentielle afin de garantir la solidité, stabilité et pérennité du système bancaire. Nous avons l’espoir que l’ensemble de ces suggestions contribueront à préserver la solidité, stabilité et pérennité du système bancaire comorien afin de financer le développement de l’économie comorienne et sortir le pays de la pauvreté<br>This thesis on busness management, aims to elucidate the difficulties faced by the stakeholders of the Comorian banking system and to provide solutions to ensure its soundness, stability and sustainability. The thesis is divided into two parts. The first focuses specifically on the national and international context of the Comorian banking system. The second, highlights how the Comorian banks should adapt to the financial transparency and prudential supervision requirements. The first title of the first part, tries toshed light on the current organization of the Comorian banking system based on the French model (Chapter 1) and the contribution of the recent development of Islamic finance (Chapter 2) to close the gap in conventional banking. The reorganization of the Central Bank of the Comoros and the establishment of the local Islamic bank can contribute to a radical change in the Comorian banking system. The second title allows the regulator and lender of last resort (Central Bank of the Comoros ) to take the model of international prudential standards proposed by the Basel Committee (Basel II and III) to regulate the Comorian banking system in order to guarantee its soundness, stability and finally sustainability (Chapter 1). Through these recommendations of the Basel committee, we have provided solutions by developing Msahazi Credit Scoring Matrix Corporation, intended to analyse data of Comorian banks against endogenous risk (Chapter 2). We have also developed matrices other than Comorian banks used for internal rating of the counterparty risk (companies and individuals) to fight against exogenous risk. The second part of this thesis suggests two alternatives: the first is the requirement of financial transparency for Comorian banks (Pillar 3: Basel Conventions 2 and 3) in order to fight against embezzlement orchestrated by certain agents (Title I). The first chapter introduces the objective of financial reporting in general, and how the Basel Committee (Basel 2 and 3) asks banks to disclose their financial information (methods of risk assessments and equity). The second chapter provides credit rating techniques practiced at international level to the Comorian banks and supervisory authorities in order to distinguish the level of creditworthiness of companies and clients concerned. The second alternative we have given to the Central Bank of the Comoros is the techniques for strengthening prudential supervision (Pillar 2, Basel 2 and 3), (Title II) . The first chapter requires both the management and the bank's board of directors to define control techniques, identifications, assessments, risk managements and core capital goals. On the other hand, the supervisory authority (Comoros Central Bank) has to go through all these control tools. In the second and final chapter of the research, we propose to the Central Bank of the Comoros new prudential supervision methods to ensure the soundness, stability and sustainability of the banking system. We hope that all of these suggestions will help to preserve the soundness, stability and durability of the Comorian banking system in order to finance the development of the Comorian economy and lift the country out of poverty
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Bachurewicz, Gracjan. "Determinants of the impact of Quantitative Easing policy on the link between bank loans growth and capital ratio in Europe." Doctoral thesis, 2022. https://depotuw.ceon.pl/handle/item/4150.
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The dissertation seeks to establish determinants of the European Central Bank’s (ECB) Quantitative Easing (QE) policy impact on the relationship between bank lending growth and capital ratios in Europe. It identifies a research gap at the intersection of two research areas, namely finance and banking (the capital regulatory perspective) and central banking (the monetary policy perspective). Accordingly, the thesis focuses on bank capital and monetary policy as determinants of bank lending. It builds on a body of research that emerged in the aftermath of the 1990-1991 recession in the US. In most studies, it is argued that a sudden and sharp decline in bank credit (i.e., credit crunch) at that time was a consequence rather than a cause of the capital crunch in the US banking sector. In later years, especially in the aftermath of the Global Financial Crisis, many authors examined various bank-specific characteristics as potential determinants of the link between bank capital (ratios) and bank loan growth.
According to the literature reviewed in Chapter 1, among the most important factors influencing the studied link are bank size, liquidity ratios, and an initial level of a capital ratio (cf. Brei, Gambacorta, & von Peter, 2013; Kim & Sohn, 2017). Furthermore, reviewed studies report that bank capital and credit relationship is essentially non-linear and, in most cases, positive. The obtained results confirm this evidence. Many post-crisis empirical studies, in particular Berrospide & Edge (2010); Carlson et al. (2013); Kim & Sohn (2017); Mora & Logan (2012); Olszak et al. (2017) have in fact also supported the view of a positive link existing between bank lending growth and capital adequacy ratios. Importantly, the obtained results support the ‘risk absorption’ theory and undermine the alternative ‘financial fragility-crowding out’ hypothesis (see Berger & Bouwman, 2009). The complex and non-linear nature of studied relationship is illustrated with the originally proposed ‘circular pyramid’ that links this non-linear relationship between bank capital and credit to a range of factors such as a phase of economic cycle, credit market dynamics, bank profits, loan loss provisions and the stock market. The proposed approach is consistent with the endogenous theory of money, financial accelerator view and the asymmetric information theory.
A major finding of the thesis is that QE policy in the form of the ECB’s Asset Purchase Program has strengthen the positive link between regulatory capital ratios and bank loan growth in Europe. Since this finding is robust to using the alternative liquidity ratio across all adopted measures of a capital ratio, it can be regarded as a contribution to the literature. The QE policy in Europe has been successful in making banks more responsive to capital ratios in their lending activities. This policy thus contributed to removing a liquidity constraint for less liquid banks, but also it has made them more responsive (i.e., less resilient) to capital shocks. This evidence implies that policy actions should be aimed both at improving bank liquidity and at the same time providing banks with resources to strengthen their capital ratios, for example by state-contingent capital injections or bank equity purchases programs.<br>Celem dysertacji jest określenie determinantów wpływu polityki luzowania ilościowego (polityka QE) prowadzonej przez Europejski Bank Centralny (EBC) na relację między wzrostem kredytu bankowego a współczynnikami kapitałowymi banków funkcjonujących w Europie. Niniejsza praca doktorska identyfikuje lukę badawczą na przecięciu dwóch obszarów badawczych: finansów i bankowości (perspektywa kapitałowo-regulacyjna) oraz bankowości centralnej (perspektywa polityki monetarnej). W związku z tym niniejsza dysertacja skupia się na kapitałach bankowych oraz polityce pieniężnej jako determinantach akcji kredytowej banków. Praca w głównej mierze opiera się na badaniach prowadzonych po wybuchu recesji z lat 1990-1991 w Stanach Zjednoczonych. Większość badań wskazuje, że nagłe i znaczące załamanie się podaży kredytu bankowego (krach kredytowy) w tym czasie było konsekwencją a nie przyczyną nagłego spadku kapitałów własnych banków (krach kapitałowy) w amerykańskim sektorze bankowym. W kolejnych latach, w szczególności po wybuchu Globalnego Kryzysu Finansowego, wielu autorów zaczęło badać różne charakterystyki bankowe jako potencjalne determinanty relacji zachodzącej między współczynnikami kapitałowymi banków a wzrostem ich akcji kredytowej.
Z przeprowadzonego w Rozdziale 1. przeglądu literatury wynika, że do najważniejszych czynników wpływających na badaną relację należy zaliczyć: rozmiar banku, współczynniki płynnościowe oraz początkowe wskaźniki kapitałowe (por. Brei, Gambacorta, & von Peter, 2013; Kim & Sohn, 2017). Ponadto, analizowane badania wskazują, że związek między kapitałami bankowymi a kredytem bankowym jest w gruncie rzeczy nieliniowy i w większości przypadków jest dodatni. Uzyskane w niniejszej rozprawie wyniki potwierdzają te obserwacje. Wiele powstałych po kryzysie badań empirycznych, w szczególności Berrospide & Edge (2010); Carlson et al. (2013); Kim & Sohn (2017); Mora & Logan (2012); Olszak et al. (2017) potwierdza dodatni związek występujący między wzrostem kredytu bankowego a współczynnikami adekwatności kapitałowej. Co ważne, uzyskane rezultaty potwierdzają teorię „absorbcji ryzyka”, w ten sposób podważając alternatywną hipotezę o „finansowej kruchości i efekcie wypierania” (zob. Berger & Bouwman, 2009). Złożona i nieliniowa natura badanej relacji jest zobrazowana przez autorski schemat „kołowej piramidy”, który łączy tą nieliniową relację między kapitałami bankowymi a kredytem z wieloma czynnikami takimi jak: faza cyklu koniunkturalnego, dynamika rynku kredytowego, zyski bankowe, odpisy na rezerwy kredytowe oraz rynek akcji. Zaproponowane podejście jest zgodne z endogeniczną teorią pieniądza, teorią akceleratora finansowego oraz z teorią asymetrii informacji.
Ważny wniosek płynący z niniejszej rozprawy jest taki, że polityka QE w formie programu Asset Purchase Program realizowanego przez EBC wzmocniła dodatnią relację zachodzącą między regulacyjnymi współczynnikami kapitałowymi a wzrostem kredytu bankowego w Europie. Ponieważ wniosek ten jest odporny na zmianę wykorzystywanego współczynnika płynnościowego dla wszystkich przyjętych wskaźników kapitałowych, można uznać go za istotny wkład do literatury. Polityka QE w Europie okazała się być skuteczna pod względem zwiększania elastyczności akcji kredytowej banków na zmiany współczynników kapitałowych. W ten sposób ta polityka przyczyniła się do zmniejszenia skali problemów płynnościowych w przypadku mniej płynnych banków, choć z drugiej strony doprowadziła do zwiększenia ich responsywności (tj. zmniejszenia odporności) na szoki kapitałowe. Ten fakt sugeruje, że działania decydentów gospodarczych powinny być nakierowane zarówno na poprawianie sytuacji płynnościowej banków, jak i jednocześnie na dostarczanie bankom zasobów do wzmacniania ich współczynników kapitałowych, na przykład poprzez wprowadzenie zależnego od warunków rynkowych programu dokapitalizowania banków albo programów zakupu udziałów bankowych.
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ANDRIEVSKAYA, Irina. "Essays on Macroprudential regulation in the Russian banking system." Doctoral thesis, 2013. http://hdl.handle.net/11562/560352.
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La tesi discute il rischio sistemico e analizza il regolamento macroprudenziale del sistema bancario della Russia. Il primo capitolo esamina il problema del rischio di liquidità sistemica e sviluppa un approccio empirico semplice per stimare il rischio sistemico di finanziamento della liquidità in un sistema bancario e per identificare le banche di rilevanza sistemica. I calcoli sono effettuati utilizzando la distribuzione simulata del surplus di liquidità complessiva (aggregate liquidity surplus) determinata, a sua volta, utilizzando ICA (Independent Component Analysis). L'importanza sistemica delle banche è quindi valutata in base al loro contributo alla variabilità del surplus di liquidità del sistema. Il secondo e il terzo capitolo analizzano le possibili conseguenze dell'adozione delle regole di Basilea II (prevista per il 2015) in relazione ai requisiti di capitale per la stabilità del sistema bancario in Russia. Due metodologie sono utilizzate. Nel secondo capitolo, è stata utilizzata una metodologia empirica basata su una distribuzione congiunta, mentre il modello copula è usato nel terzo capitolo. In entrambi i casi si applica l'approccio Value-at-Risk (VaR). È importante sottolineare che i risultati (con entrambe le metodologie) mostrano la considerevole sottocapitalizzazione del sistema bancario russo. L'effetto di pro-ciclicità, però, diventa evidente solo quando viene utilizzata la metodologia empirica di distribuzione congiunta. L'ultimo capitolo tratta della disciplina di mercato nel mercato interbancario russo ed esamina se la disciplina è efficiente nell'influenzare le banche a scegliere rischi e livelli di capitalizzazione adeguati durante il periodo pre-crisi e il periodo successivo. L'esistenza della disciplina di mercato basata sulla quantità è stimata utilizzando il modello di selezione del campione Heckman, mentre l'efficacia della disciplina è analizzata utilizzando il modello di dati longitudinali. I risultati mostrano che la disciplina di mercato era presente prima della crisi e i creditori stranieri erano i più efficienti sotto questo aspetto. Dopo la crisi e le conseguenti perturbazioni i meccanismi di disciplina diventano praticamente inefficienti.<br>The thesis is devoted to the systemic risk and macroprudential regulation analysis in the Russian banking system. The first chapter examines the issue of systemic liquidity risk and develops a straightforward empirical approach in order to estimate systemic funding liquidity risk in a banking system and to identify systemically important banks. Calculations are carried out using simulated distribution of the aggregate liquidity surplus determined using ICA (Independent Component Analysis). The systemic importance of banks is then assessed according to their contribution to the variability of the system’s liquidity surplus. The second and the third chapters, in turn, analyse the possible consequences of the adoption of the Basel II capital requirements standards (planned for 2015) for the stability of the banking system in Russia. Two methodologies are used. In the second chapter, a methodology based on an empirical joint distribution is employed, while copula modelling is used in the third chapter. In both cases the Value-at-Risk (VaR) approach is applied. Importantly, the results (under both methodologies) show the substantial undercapitalization of the Russian banking system. The procyclicality effect, though, becomes evident only when the empirical joint distribution methodology is employed. The last chapter discusses market discipline in the Russian interbank market and examines whether that is efficient in influencing the risk-taking behaviour of banks during the pre-crisis time and the period afterwards. The existence of quantity-based market discipline is estimated using the Heckman sample selection model, while the efficiency of market discipline is analysed employing the panel data model. The findings show that market discipline was present before the crisis with foreign lenders being the most efficient under this aspect. After the crisis and ensuing distress, in turn, the disciplining mechanisms become practically inefficient.
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Brink, Arend. "Die gebruik van verhoudingsgetalle om kapitaaltoereikendheid van bankinstellings te ontleed." 1996. http://hdl.handle.net/10500/15980.
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Text in Afrikkans<br>Summaries in English and Afrikaans<br>The capital-adequacy problem is essentially concerned with the amount of capital that a bank should
maintain in order to conduct its operations in a prudent manner. Because one of the primary
functions of bank capital is to act as a risk cushion for the protection of a bank's depositors, a bank's
capital funds are often regarded as comprising an insurance element. The capital-adequacy concept,
therefore, may be seen as part of the overall banking risk, or prudential management.
An attempt has been made to indicate that bank supervisors should use not only capital ratios when
analysing a bank's capital position. Other factors, such as asset quality and other financial risks,
should also be taken in consideration.
Financial ratio analysis, however, provides bank supervisors with useful information. When
combining ratio analysis with non-quantifiable factors, bank supervisors may indeed achieve their goal
of determining capital adequacy.<br>Die kapitaaltoereikendheidsprobleem is hoofsaaklik gebaseer op die hoeveelheid kapitaal waaroor 'n
bankinstelling moet beskik, ten einde die bankbesigheid op 'n verstandige wyse te bedryf. Een van
die primere funksies van kapitaal is om te dien as verliesabsorberingsbuffer ter beskerming van 'n
bankinstelling se deposante, en daarom word toereikende kapitaal dikwels geag om 'n soort
versekeringselement te bevat. Die konsep van kapitaaltoereikendheid kan dus beskou word as deel
van die totale risikobestuurskonsep.
Daar is tydens die studie gepoog om aan te dui dat banktoesighouers nie net kapitaalverhoudings
behoort te gebruik om 'n bankinstelling se kapitaalposisie te ontleed nie. Ander faktore, soos
batekwaliteit en antler finansiele risiko's, moet ook in ag geneem word.
Finansiele verhoudingsgetalontledings voorsien banktoesighouers van waardevolle inligting. Indien
verhoudingsgetalle egter met nie-gekwantifiseerde inligting gekombineer sou word, kan
banktoesighouers hul doel om kapitaaltoereikendheid te bepaal, bereik.<br>M.Com. (Business Management)
Books on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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Jonhar, ed. Pengaruh loan to deposit ratio (LDR) dan capital adequacy ratio (CAR) terhadap tingkat keuntungan bank: Laporan penelitian. Departemen Pendidikan dan Kebudayaan, Lembaga Penelitian, Universitas Andalas, 1996.
Find full textBook chapters on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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Sutrisno. "Financing Scheme and Determinant Factors." In Proceedings of the 19th International Symposium on Management (INSYMA 2022). Atlantis Press International BV, 2022. http://dx.doi.org/10.2991/978-94-6463-008-4_4.
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AbstractThis study aims to examine the factors that influence the financing scheme of Islamic Rural Banks (IRBs) in Indonesia. The financing scheme consists of profit margin financing (PMF) and profit-sharing financing (PSF). Factors thought to influence the financing scheme are non-performing financing (NPF), financing to deposit ratio (FDR), capital adequacy ratio (CAR), return on assets (ROA), operating to income ratio (OEIR), and company size (Size). The population in this study was 163 IRBs in Indonesia with a sample of 100 IRBs. The observation period was 4 years, with quarterly data. Hypothesis testing applied multiple regression. The results show that the factors influencing the financing scheme between PMF and PSF are the same, namely, NPF and Size have a significant negative effect, while FDR, CAR, ROA and OEIR have no effect. One variable is OEIR; if the significance level is 10%, then OEIR has a significant and negative effect on the profit-sharing financing scheme, but the profit-margin financing scheme has no effect.
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Gandh, Jenil, and Dr Alpesh Nasit. "EMPIRICAL STUDY ON THE DETERMINANTS OF CAPITAL ADEQUACY RATIO WITH REFERENCE TO COMMERCIAL BANKS IN INDIA." In Futuristic Trends in Management Volume 2 Book 5. Iterative International Publishers, Selfypage Developers Pvt Ltd, 2023. http://dx.doi.org/10.58532/v2bs5p3ch5.
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The research study is conducted particularly to analyze the determinants of capital adequacy requirement in India and determine the effect of various factors on capital adequacy ratio and profitability of the banks. According to Alfred Marshal ―Capital is that part of wealth which is devoted to create further wealth. The banking sector takes the risks of all business or industry directly or indirectly, so capital management becomes more important for banking industry. Traditionally, banking operations were simple and generally operated on 3-6-3 rule but now due to evolution of additional services banking services has been complicated. The new banking regulation has motivated our study which mainly focused on practices of risk minimization related to regulatory capital assets. The purpose of the study is finding out the essence of maintaining Capital adequacy ratio according to the regulation or more than that and what are the factors leading to maintain that level of CAR. Analysis has been conducted on study of financial statements of 34 banks, 19 public banks and 15 private banks. The study covers 10 years from 2005-14. To find the relationship among those dependent and independent factors correlation analysis and multiple regression analysis have been used. The outcome of the study is showing that average CAR for the study period has been 13.37%, correlation amongst CAR and most of the factors is strongly & positively correlated. Such as, Reserve (r=0.62), D/E ratio (0.62), ROA (r=0.56) and Interest income ratio (r=0.47) while liquidity is strongly & negatively correlated to CAR (r=-0.69)
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Erhan, Deniz Umut, and M. Ugur Akdogan. "General Outlook on Financial Structure and Capital Adequacy of ISE-30 Companies during Economic Crisis (2008-2009)." In Technology and Financial Crisis. IGI Global, 2013. http://dx.doi.org/10.4018/978-1-4666-3006-2.ch015.
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In the simplest terms, economic crises could be recognised as abnormal fluctuations adversely impacting market conditions. Despite subsequent economic recoveries, markets and the financial system remain in a period of significant uncertainty after such crises. The baseline scenario is for balance sheets to strengthen gradually as the economy recovers and as progress is made in addressing structural problems in financial positions. However, substantial downside risks always remain for companies. Even companies with a high “Capital Adequacy Ratio” (CAR) face the difficult challenge of managing a smooth transition to self-sustaining growth while stabilising debt burdens under low and uncertain economic prospects. Without further bolstering of balances sheets, markets remain susceptible to funding shocks that could intensify deleveraging pressures and place further drag on public finances and recovery. Companies have proven resilient to economic turbulence but are vulnerable to a slowdown and face risks in managing sizable and potentially volatile capital inflows. Policy actions need to be intensified to contain risks, address debt burdens, and implement effective and institutional frameworks to ensure financial stability. Based on this perspective and through applying the financial soundness indicators methodology, the financial structures and soundness indicators of the top 30 companies on the Istanbul Stock Exchange (ISE-30) are subjected to an assessment for determining the impact of the global crisis. The short- and long-run credits and non-monetary debit lines of ISE-30 companies are investigated together with the momentum of growth in assets, liabilities, and cash-flow stabilities. The financial soundness of ISE-30 companies is discussed in terms of the “capital-liabilities ratios” performance measure. Finally, the study focuses on long-run economic impacts and the analysis assumes that companies should transition to new levels of capital and liquidity to strengthen their financial stability and sustainability.
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Kant, Abhay, Renu Bharti, and Shobhit Sagar. "Impact of Digital Culture Integration on Performance of Infosys Ltd." In Climate Change Management and Social Innovations for Sustainable Global Organization. IGI Global, 2023. http://dx.doi.org/10.4018/978-1-6684-9503-2.ch015.
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The customer is an important resource for achieving the digitalisation capabilities. Organisations mainly emphasise the customer taste and preference because the customer is the king of the market as well as a help in assessing the internal as well as external process that can simplify the various points that are useful to make a balance between customers and life cycle of products and services. The main aim of the chapter is to know the digital culture transformation and its impact on financial performance of Infosys. The present study utilizes secondary data sources. The secondary data sources primarily consist of published studies in various international and national journals, magazines, and conference proceedings. The statistical tools such as the ratio analysis and sample test were used to test impact of digital culture transformation. The study found that electronic payment growth (EPG) did not significantly impact four important financial metrics, namely net interest margin (NIM), current ratio, advance growth, and capital adequacy ratio (CAR).
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Sharma, Purna Prasad, and Shad Ahmad Khan. "An Appraisal of Recent Developments in Non-Performing Loans Affecting the Profitability of Commercial Bank in Bhutan." In Recent Developments in Financial Management and Economics. IGI Global, 2024. http://dx.doi.org/10.4018/979-8-3693-2683-1.ch014.
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This chapter purports to discover the causes of non-performing loans (NPLs) and its impact on the profitability of one of the commercial banks in Bhutan that is Bhutan National Bank Limited (BNBL). The causes and impact were considered from two distinct variables namely bank-specific (BS) and macroeconomic variables (MV); whereas PAT, interest income, and ROE were considered as proxies to judge the profitability of the bank covering ten years (2010-2019) time series data. The selected economic indicators appeared to be non-significant in determining the levels of NPL of BNBL. However, bank specific factors such as capital adequacy ratio (CAR) are positively affecting the NPL of the bank. Similarly, NPL (DOUB and LOSS) of the bank poses a negative impact on its profitability assessed in terms of return on equity (ROE). Further, when bank maintained higher CAR to address crisis in future, it tends to involve in lending loans easily with the assumption that higher CAR would safeguard the bank from going bankrupt or crises.
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Lawrence, Babatunde Samuel, and Mishelle Doorasamy. "Climate Change Risk and the Performance of South African Banks." In Handbook of Research on Climate Change and the Sustainable Financial Sector. IGI Global, 2021. http://dx.doi.org/10.4018/978-1-7998-7967-1.ch023.
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The comprehensive climate risk index (CRI) is used to proxy climate change risk in this chapter as an independent variable alongside control variables such as credit risk/nonperforming loan (CRISK), total asset (TA), leverage (LEV), net income margin (NIM), capital adequacy ratio (CAR), yield on earning assets (YEA), and gross domestic product (GDP). Return on assets (ROA) as the response variable was used as proxy for performance of the top six listed South African banks on the Johannesburg stock exchange. Using Stata in a multiple regression technique for the period 2006 to 2019, this chapter concludes that the CRI is negative but not significant enough to impact performance of banks; however, its different individual components such as drought index, rain-waterlogged, etc. could be computed and regressed with other profitability measures to investigate their impact on performance of the banks in future editions of this book.
Conference papers on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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ACATRINEI, Marius, Adriana AnaMaria DAVIDESCU, Laurentiu Paul BARANGA, Razvan Gabriel HAPAU, and George CALIN. "Supervised Learning Algorithms for Non-Life SCR Ratio Forecasting." In The International Conference on Economics and Social Sciences. Editura ASE, 2024. http://dx.doi.org/10.24818/icess/2024/057.
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The solvency is measured by the Solvency Capital Requirement (SCR). This study seeks to determine the best financial ratios to forecast SCR because it is significant. There is seasonality, data jumps, and shifts in insurance indicators, which make prediction of SCR difficult. Different machine learning algorithms are applied to the insurance market in this research to see how well they can describe and predict the SCR ratio. Gaussian process regression, ensemble methods, regression decision trees, stepwise regression, and neural networks were used as supervised learning techniques to find the most suitable method to predict SCR. According to our analysis of nonlife insurance data from Romania between 2016-2020, debt ratio, reserve adequacy, receivables, and liquidity are among the key indicators that should be considered when forecasting SCR. These findings can be useful for policymakers, regulators, actuaries, and professionals involved in risk management or the insurance industry.
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Paudel, Gyanendra Prasad, and Suvash Khanal. "DETERMINANTS OF CAPITAL ADEQUACY RATIO (CAR) IN NEPALESE COOPERATIVE SOCIETIES." In 5th Economics & Finance Conference, Miami. International Institute of Social and Economic Sciences, 2016. http://dx.doi.org/10.20472/efc.2016.005.021.
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Ahmeti, Yllka, Ardi Ahmeti, and Albina Kalimashi. "IMPACT OF LIQUIDITY MANAGEMENT ON COMMERCIAL BANKS PROFITABILITY IN KOSOVO DURING THE PERIOD 2011-2019." In 5th International Scientific Conference – EMAN 2021 – Economics and Management: How to Cope With Disrupted Times. Association of Economists and Managers of the Balkans, Belgrade, Serbia, 2021. http://dx.doi.org/10.31410/eman.2021.103.
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Liquidity management and its impact on the profitability of commercial banks are two issues of particular importance in the further development of the business and at the same time two sources of concern for financial managers. For this reason, this study aims to determine the impact of changes in liquidity levels on the profitability of commercial banks in Kosovo. The study is based on secondary data for nine commercial banks in Kosovo over 9 years, respectively for the period from 2011 to 2019, taken from the audited annual statements of these financial institutions. The study measures the relationship between liquidity management and profitability and its impact on profitability. In order to process the data, regression analysis and correlation were used, while the findings determine whether there is a significant relationship between liquidity management and profitability in commercial banks in Kosovo. The current ratio, the quick ratio, the cash ratio and the capital adequacy ratio have been taken as liquidity indicators, while return on assets and return on equity are considered as profitability indicators.
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Afriyanto, Fajar, Hilda Purnamawati, and Iyan Sukiman. "THE EFFECT OF CAPITAL ADEQUACY RATIO (CAR) AND LOAN TO DEPOSIT RATIO (LDR) ON NON PERFORMING LOAN (NPL) (CASE STUDY ON CONVENTIONAL COMMERCIAL BANKS IN INDONESIA ON 2016-2020)." In Seminar Sosial Politik, Bisnis, Akuntansi dan Teknik (SoBAT) ke-3. LPPM USB YPKP, 2021. http://dx.doi.org/10.32897/sobat3.2021.26.
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This study aims to determine the influence of the Capital Adequacy Ratio (CAR) and Loan Deposit Ratio (LDR), both partially and simultaneously, on Non Performing Loans (NPL) in Conventional Commercial Banks in Indonesia for the period 2016-2020. This research is associative research with a quantitative approach. The data used in this study is secondary data, data analysis techniques using a data regression panel. Testing panel data include CEM, FEM and REM, Chow Test, Hausman Test, Lagrange Multiplier Test. Classic assumption tests include The Test of Normality, Heteroskedastisitas, Multicollinearity and Autocorrelation. Data analysis using correlation and determination coefficient analysis, Simultaneous and Partial Hypothesis Test. The population in this study was 99 Conventional Commercial Banks in Indonesia and a sample of 25 Conventional Commercial Banks in Indonesia with purposive sampling techniques. Based on the results of simultaneous hypothesis testing where CAR and LDR jointly have a significant effect on NPL Conventional Commercial Banks in Indonesia, the results off count 6.89 > 3.42 f table with a significant rate of 0.001457 lower than the α 0.05. While the partial hypothesis testing where CAR affects NPL Conventional Commercial Banks in Indonesia seen the results of t count -3,507 < 2,068 t table with a signifies value of CAR of 0.0006 is smaller than α 0.05. LDR has no effect on NPL of Conventional Commercial Banks with the calculation result of -1,116 < 2,068 t table with a significant LDR value of 0.2665 greater than α 0.05.
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Rahayu, Sri, Heny Triastuti Kurnia Ningsih, and Irma Zukhairani. "The Effect of Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR) and Return on Asset (ROA) against Stock Price at Sharia Commercial Bank in Indonesia." In International Conference on Multidisciplinary Research. SCITEPRESS - Science and Technology Publications, 2018. http://dx.doi.org/10.5220/0008892406810685.
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Budiyono, Budiyono. "Capital Adequacy Ratio (CAR) Analysis, Non Performing Financing (NPF), Third Party Funds, and Interest Rate on Return on Assets (ROA) of Islamic Banking." In Proceedings of the 1st International Conference on Social Science, Humanities, Education and Society Development, ICONS 2020, 30 November, Tegal, Indonesia. EAI, 2021. http://dx.doi.org/10.4108/eai.30-11-2020.2303699.
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Eshov, Mansur, and Karina Benetti. "Impact of Monetary Policy Sustainability Indicators on Economic Growth in Transition to Inflation Targeting." In Liberec Economic Forum 2023. Technical University of Liberec, 2023. http://dx.doi.org/10.15240/tul/009/lef-2023-40.
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Foreign experience in the transition to inflation targeting has been studied empirically. The foreign experience shows that countries with inflation targeting regimes have not abandoned and have not returned to other alternative monetary regimes. This indicates that the inflation targeting regime has been successfully tested in practice. It should be noted that inflation targeting has led to new approaches to monetary policy targets. As a result, international economists and experts have started to research inflation targeting as a new path in the scientific arena. The aim of the study is the study is to investigate the influence of indicators of monetary policy stability of Uzbekistan on economic growth using various economic-mathematical models. In the paper was investigated the impact of Uzbekistan's monetary policy stability indicators on economic growth by using four criteria from the 4×2 matrix model in 2011–2020. Based on obtained results, the Phillips-Perron and extended Dickey-Fuller tests determine whether variables are stationary. The long-term correlation between the variables is checked using the Johansen cointegration test. The results show that increases in bank capital adequacy, loan portfolio, money supply, and lower inflation help maintain macroeconomic stability. However, the rising volume of bank deposits and foreign currency appreciation against Uzbek sum hurts economic growth. In addition, liquidity ratio, state gold and foreign exchange reserves are insignificant and do not affect economic growth.
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Alihodžić, Almir, and Anna Zielińska-Chmielewska. "THE FACTORS EFFECTING ON BANK PROFITABILITY: THE CASE OF BOSNIA AND HERZEGOVINA." In 4th International Scientific Conference – EMAN 2020 – Economics and Management: How to Cope With Disrupted Times. Association of Economists and Managers of the Balkans, Belgrade, Serbia, 2020. http://dx.doi.org/10.31410/eman.s.p.2020.41.
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This research includes all banks in Bosnia and Herzegovina and testing internal and external variables on bank profitability indicators. In addition, the profitability of banks in B&H is also influenced by the financial result of operations, which is determined by price and interest rate risk. The primary goal of this paper is to determine, through correlation and regression analysis, the strength and significance of external and internal variables on bank profitability in Bosnia and Herzegovina. The research period covered from 2008: q1 to 2019: q4 on a quarterly database. Also, in this paper, the STATA 13.0 software package will be used. The following dependents variable were used: return on asset (ROA) and return on equity (ROE). The following independent variables were used: the growth rate of net gross/loss (GRNGL), the growth rate of non-performing loans (GRNPL), GDP growth rate (GRGDP), concentration ratio of loans of the largest banks in the system (CR Loans), concentration ratio of deposits of the largest banks in the system (CR Deposits), capital adequacy ratio (CAR) and loan-to-deposit ratio. The total number of observations was 48. The results showed that the significant influence on the dependent variables were the return on equity (ROE) and return on asset (ROA), which has been achieved by the following independent variables, such as the growth rate of net gross/loss, the growth rate of non-performing loans and concentration ratio of loans and deposit of the largest banks.
Reports on the topic "Capital Adequacy Ratio (CAR) and Liquidity"
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Yani, Nor. PENGARUH CAPITAL ADEQUACY RATIO (CAR) DAN NON PERFORMING LOAN (NPL) TERHADAP PROFITABILITAS (STUDI KASUS PADA BANK BUMN). Jurnal Madani: Ilmu Pengetahuan, Teknologi, dan Humaniora, 2018. http://dx.doi.org/10.33753/madani.v1i2.18.
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Financial Stability Report - First Half of 2023. Banco de la República, 2024. http://dx.doi.org/10.32468/rept-estab-fin.sem1.eng-2023.
Full textAbstract:
Banco de la República’s main goal is to preserve the purchasing power of the currency in coordination with the general economic policy that is intended to stabilize output and employment at long-term sustainable levels. Properly meeting the goal assigned to the Bank by the 1991 Constitution critically depends on preserving financial stability. This is understood to be a general condition in which the financial system channels domestic savings and evaluates and manages the financial risks in a way that facilitates the performance of the economy and efficient allocation of resources while, at the same time, it is able to, on its own, absorb, dissipate, and mitigate the appearance of risks that may arise as a result of adverse events. Banco de la República’s Financial Stability Report provides a diagnosis of the financial system’s and its debtors’ recent performance and indicates the main risks and vulnerabilities that could have an effect on the stability of the Colombian economy. The objective is to share this information with the financial market participants and the public and encourage public debate on trends and risks that affect the system. The results presented here also serve the monetary authority as a basis for making decisions that will enhance financial stability. The analysis presented in this edition of the Report makes it possible to conclude that the Colombian financial system has liquidity and capital adequacy levels that are not only above those required by internationally accepted parameters but would even be sufficient to face the occurrence of extreme low-probability risks. In particular, during the last six months, the aggregate capital adequacy of credit institutions rose 22 basis points and reached 18.1% in February 2023. The liquidity coverage ratio indicator and the net stable funding ratio, in turn, were 202.0% and 111% and thus well above the regulatory minimums of 100%. The period of analysis in this Report includes the period of stress that occurred in the U.S. regional bank segment and at Credit Suisse and caused nervousness regarding possible risks to global financial stability. The characteristics and risks that generated problems in those entities are analyzed in this Report and the Colombian financial system is evaluated considering different sources of vulnerability. Some characteristics that protect the Colombian financial system are: (i) a cautious balance sheet structure on both the asset and liability sides of the entities; (ii) the widespread practice of valuing the investment portfolio at market prices, and (iii) the appropriate management of liquidity risk. In line with a higher interest-rate scenario and a slowdown in local economic activity, the credit growth rate has slowed down in recent months while there have been signs of deterioration in the loan portfolios. Credit, which had been exhibiting excessively high growth levels last year, especially in the consumer category, has slowed down while past-due and risky loans have rebounded. This is also driven mainly by the consumer portfolio which is reflecting the growth in risks assumed by financial institutions in previous quarters. In spite of the lower portfolio performance seen currently and projected for the future, the high level of household indebtedness in Colombia, especially in the consumer segment, continues to be considered a source of vulnerability for the Colombian financial system as was the case in the previous edition of this Report (see section 2.2.1). Nevertheless, the financial system continues to reflect soundness and stability: credit institutions (CIs) are keeping liquidity and capital adequacy indicators well above the minimums established by regulation while nonbanking financial institutions (NBFIs) have registered an increase in their profits.The adjustments in the monetary policy stance since September 2021, the effect of the macroprudential measures implemented by the Office of the Financial Superintendent of Colombia (FSC) at the end of last year associated with a higher requirement in terms of loan loss provisions, and stricter conditions in the allocation of loans by CIs are behind the projection of a loan portfolio growth rate that is likely to continue declining in the coming months. In compliance with its constitutional objectives and in coordination with the financial system’s security network, Banco de la República will continue to closely monitor the outlook for financial stability at this juncture and will make the decisions necessary to ensure the proper functioning of the economy, facilitate sustainable flows of sufficient credit and liquidity funds, and further the smooth functioning of the payment system.
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Financial Stability Report - First Half of 2022. Banco de la República, 2023. http://dx.doi.org/10.32468/rept-estab-fin.sem1.eng-2022.
Full textAbstract:
Banco de la República’s main objective is to preserve the purchasing power of the currency in coordination with the general economic policy that is intended to stabilize output and employment at long-term sustainable levels. Properly meeting the goal assigned to the Bank by the 1991 Constitution critically depends on preserving financial stability. This is understood to be a general condition in which the financial system evaluates and manages the financial risks in a way that facilitates the economy’s performance and efficient allocation of resources while, at the same time, it is able to, on its own, absorb, dissipate, and mitigate the appearance of risks that may arise as a result of adverse events. This Financial Stability Report provides Banco de la República’s diagnosis of the financial system’s and the recent performance of its debtors as well as of the main risks and vulnerabilities that could affect the stability of the Colombian economy. That is why the financial market participants and the public are being informed, and public debate on trends and risks affecting the system is being encouraged. The results presented here also serve the monetary authority as a basis for making decisions that will enhance financial stability in the general context of its objectives. This edition marks the twentieth anniversary of the Financial Stability Report, which was first published in July 2002. Over these past twenty years, the credit and macroprudential policy framework in Colombia has been continuously reinforced while financial regulation and supervision have closely followed international standards. As a result the Colombian financial system has expanded its services to the economy and has weathered diverse economic circumstances while remaining sound and stable, since 2002. Over the course of time, the Financial Stability Report has been and continues to be permanently updated by Banco de la República in order to improve its usefulness to the general public. The analysis presented in this Report allows us to conclude that the recovery of lending activity in Colombia has been consolidated in recent months. Credit (in all its categories) has picked up and the decline in past-due and risky loans continues. The capital adequacy and liquidity indicators of credit institutions are comfortably above the regulatory minimums. The performance of credit institutions and nonbanking financial institutions, in a context of increased market volatility, reflects the soundness and stability of the Colombian financial system. At the same time, the combination of various global events and the recent trend in lending poses some vulnerabilities for the stability of the financial system. First, as mentioned in the previous edition of the Report, the exposure of the Colombian economy and financial institutions to sudden changes in global financial conditions has persisted in recent months in an environment of high uncertainty. Second, recent months have seen a rapid expansion of loans to households in Colombia in both the housing category and, especially, the consumer category. The trend in credit growth could eventually cause fragilities given that the ratio of household indebtedness to disposable income is around its historical maximum. In any case, the results presented in this Report indicate that the financial system has shown itself to be sufficiently resilient to adverse scenarios on both vulnerability fronts. In compliance with its constitutional objectives and in coordination with the financial system’s security network, Banco de la República will continue to closely monitor the outlook for financial stability at this juncture and will make the decisions that are necessary to ensure the proper functioning of the economy, facilitate the flow of sufficient credit and liquidity resources, and further the smooth functioning of the payment system. Leonardo Villar Gómez, Governor
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Financial Stability Report - Second Half of 2022. Banco de la República, 2023. http://dx.doi.org/10.32468/rept-estab-fin.sem2.eng-2022.
Full textAbstract:
Banco de la República’s main goal is to preserve the purchasing power of the currency in coordination with the general economic policy that is intended to stabilize output and employment at long-term sustainable levels. Properly meeting the goal assigned to the Bank by the 1991 Constitution critically depends on preserving financial stability. This is understood to be a general condition in which the financial system evaluates and manages the financial risks in a way that facilitates the suitable performance of the economy and efficient allocation of resources while, at the same time, it is able to absorb, dissipate, and mitigate the appearance of risks that may arise as a result of adverse events. This Financial Stability Report meets the goal of giving Banco de la República’s diagnosis of the financial system’s and its debtors’ recent performance as well as of the main risks and vulnerabilities that could affect the stability of the Colombian economy. The Report is intended to inform the public and the participants in the financial markets about the trends and risks affecting the system and it also intends to promote public debate on this subject. The results presented here also serve as a basis for the monetary authority to assess the effects and risks of monetary policy at the current situation and to adopt measures under its purview to promote financial stability. The analysis presented in this edition of the Report leads to the conclusion that there has been a strong credit trend in Colombia in the last few months that is consistent with the strength of economic activity. Credit continues to grow (in all its categories and especially in consumer loans) while past-due and risky loans continue to decline for the aggregate portfolio. In general terms, the favorable performance of credit establishments (CIs) in a context of tighter financial conditions and greater volatility in financial markets continues to reflect the soundness and stability of the Colombian financial system. In spite of exhibiting a recent decline, CIs are keeping liquidity and capital adequacy indicators well above the regulatory minimums. Its aggregate profitability, in turn, returned to the levels seen before the pandemic shock and showed a positive performance in financial intermediation activities. With respect to non-bank financial institutions, the recent volatility of the financial markets has led to reductions in their level of assets due to the devaluations in their investment portfolios. This has been reflected mainly in reduced profitability for Trust Companies (TC) and Pension Fund Managers (PFM). In line with the positive performance of economic activity in 2021 and so far in 2022, the rapid surge in household loans in Colombia, especially consumer loans together with the high levels of household debt to disposable income ratio is still considered a source of vulnerability for the stability of the Colombian financial system just as it was in the previous edition of this Report (see section 2.2.2). In addition, given the large current account deficit and the foreign financing needs, the exposure of the Colombian economy and financial institutions to changes in financial conditions persists in a global environment of high uncertainty. In any case, the results presented in this Report indicate that the financial system has shown to be resilient to the materialization of adverse scenarios (see Chapter 3). In compliance with its constitutional objectives and in coordination with the financial system’s security network, Banco de la República will continue to closely monitor the financial stability outlook at this juncture and will make the necessary decisions to ensure the proper functioning of the economy, facilitate the sufficient flow of credit and liquidity resources, and promote the smooth functioning of the payment system. Box 1: Insurance Industry Performance During the Covid-19 Pandemic - Financial Stability Report, Second Half of 2022. Gualtero-Briceño, Daniela and Pirateque-Niño, Javier Eliecer Box 2: Recent Trends in the Financial Position of Households - Financial Stability Report, Second Half of 2022. Gómez-Molina, Andrés Camilo; Mariño-Martínez, Juan Sebastián and Osorio-Rodríguez, Daniel Box 3: A Description of the Foreign Exchange Risk of Real Sector Firms in Colombia in 2021 - Financial Stability Report, Second Half of 2022. Carmona-Duarte, Alvaro; Martinez-Osorio, Adrian and Niño-Cuervo, Jorge Jorge Niño