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1
Das, Ramesh, Arun Kumar Patra, and Utpal Das. "Management of NPA via Capital Adequacy Norms." International Journal of Finance & Banking Studies (2147-4486) 3, no. 1 (July 21, 2014): 62–74. http://dx.doi.org/10.20525/ijfbs.v3i1.169.
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The reform agenda in the financial as well as banking sector in the Indian economy was not only in the target of achieving profitable banking business but also to reduce the magnitude of banking funds locked in the bad debt account so that, among others, the real delivery of credit (the credit-deposit ratio) rises in overall fronts. The Narasimham Committee Report in respect of reducing magnitude of non- performing assets has been framed in line with the Basel Norm regarding the asset quality of the banks where capital adequacy ratio has been fixed for different banks to achieve within different time periods. The present study, under such a back ground, has been structured to examine the profile of all Scheduled Commercial Banks in all ranges of CRAR over time in aggregate and bank group specific and to measure degree of correlation of NPA-Deposit ratio with CRAR trends and Credit-Deposit Ratio in all ranges of CRAR and their significance levels for the time period 1995-96 to 2009-2010. It has been observed that there has been variation across banks in following the guidelines of the reform committee. SBI group and foreign banks have been performing well in this respect. There has been rising trend of the proportions of banks in the above 10 per cent range of CRAR. The NPA/D ratio and C-D ratio have been observed to be positively and negatively correlated respectively for the first three ranges of CRAR and reverse in the above 10 per cent range. The correlation between the NPA/D ratio and C-D ratio is negative and significant.
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Bhattarai, Bishnu Prasad. "Determinants of Capital Adequacy Ratio Commercial Banks in Nepal." Asian Journal of Finance & Accounting 12, no. 1 (August 31, 2020): 194. http://dx.doi.org/10.5296/ajfa.v12i1.17521.
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The study attempts to determining the capital adequacy ratio of commercial banks in Nepal. This study is based on the secondary balance panel data. The data were collected from the 11 commercial banks for the period of 2013/14 to 2017/18 leading to 55 observations. The convenience sampling technique has been used to selection of sample of the study. The study period has been made for fresh data in the analysis. The descriptive, correlational and casual comparative research design has been used for data analysis. The study assumes that the capital adequacy ratio of commercial banks depends on bank specific variable: credit risk, asset quality, management quality, return on assets, liquidity, size of bank and macroeconomics variables gross domestic products growth rate and consumer price index i.e. inflation rate. The three different model like Pooled OLS, Fixed Effects Model and Random Effects Model have been used for data analysis. The results of the study revealed that the liquidity has positive and statistically significant effects on capital adequacy ratio. Size of bank and inflation rate have negatively and statistically significant results. The others variables profitability, asset quality, credit risk, management quality and growth of gross domestic products does not effect to capital adequacy ratio. The study concluded that liquidity, size of bank and inflation have major determinants of capital adequacy ratio in Nepal.
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Kumar Basu, Udayan. "Risk Management and Capital Adequacy Norms for Banks." Foreign Trade Review 40, no. 3 (October 2005): 29–44. http://dx.doi.org/10.1177/0015732515050302.
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The overall banking scenario has undergone a dramatic change in the wake of liberalization of markets and advent of the concept of universal banking. Commercial banks can now operate as veritable financial supermarkets offering all kinds of services under one roof. The various regulatory requirements and the presence of NPAs in banks' balance sheets introduce certain rigidities in their operating parameters. Besides, the investment options expose them to market and project risks, and brings the issue of financial fragility to the foreground. In view of the new kinds of risk affecting banks and increasing global competition faced by them, their capitalization and the efficacy of the regulatory and supervisory norms assume a greater significance. The current article explores the impact of possible changes in CRR and SLR on a bank's cut-off risk, i.e. the maximum permissible risk without any default, as well as its dependence on interest rate and capital adequacy ratio. Basel II norms for taking market risk into account, the use of Value at Risk as its measure and the recent guideline by Reserve Bank of India to relate the overall market exposure to net worth, have been examined. A method towards selection of an appropriate capital adequacy ratio to cover market risks has also been proposed.
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Putranto, Alfian Agus, Farida Titik Kristanti, and Dewa Mahardika. "CAPITAL ADEQUACY RATIO, LOAN DEPOSIT RATIO DAN NON PERFORMING LOAN TERHADAP PROFITABILITAS." Vol 9 No 2 (2017) 9, no. 2 (October 25, 2017): 88–93. http://dx.doi.org/10.23969/jrak.v9i2.583.
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ROA is used to measure the ability of the bank’s management in obtaining the overall profit of the total assets owned. This study aims to examine the influence of Capital Adequacy Ratio (CAR), Loan Deposit Ratio (LDR) and Non Performing Loan (NPL). Profitability is proxied by Return on Assets (ROA) in Commercial Bank listed on Indonesia Stock Exchange (BEI) in the period of 2011-2015. The population in this study are the commercial bank listed on the Stock Exchange. Sample selection technique used is purposive sampling and acquired 31 commercial banks with the 2011-2015 study period. Methods of data analysis is panel data regression analysis. The results showed that simultaneous Capital Adequacy Ratio (CAR), Loan Deposit Ratio (LDR) and Non Performing Loan (NPL) have a significant effect on profitability. While partially, Capital Adequacy Ratio (CAR) significant positive effect, Non Performing Loan (NPL) significant negative effect, while Loan Deposit Ratio (LDR) has no effect on profitability.
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Religiosa, Maria Wrightia, and Dwi Asih Surjandari. "The Relation of Company Risk, Liquidity, Leverage, Capital Adequacy and Earning Management: Evidence from Indonesia Banking Companies." Mediterranean Journal of Social Sciences 12, no. 1 (January 17, 2021): 1. http://dx.doi.org/10.36941/mjss-2021-0001.
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The aim of this study is to analyze the effect of Company Risk, Liquidity, Leverage and Capital Adequacy Ratio on Earning Management and whether Capital Adequacy Ratio moderates the relation between Company Risk, Liquidity and Leverage and Earning Management of Banking Companies listed in Indonesia Stock Exchange during 2014-2018. Sampling techniques uses purposive sampling based on determined criteria and data analysis is performed by multiple regression analysis using E-Views 11.0 version. The result shows that in partial, Company Risk positively, Liquidity and Capital Adequacy negatively affects significantly on Earning Management, while Leverage does not and in the other side Capital Adequacy Ratio only moderates the relation between Liquidity and Earning Management. All variables simultaneously affect weakly on Earning Management. This research implies that due to weakly impact result, banking management must reobserve the role of Company Risk, Liquidity, Leverage and Capital Adequacy Ratio in executing Earning Management.
Received: 7 October 2020 / Accepted: 10 November 2020/ Published: 17 January 2021
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Satyanarayana, K. "Credit Risk and Capital Adequacy of Banks." Vision: The Journal of Business Perspective 4, no. 2 (July 2000): 42–49. http://dx.doi.org/10.1177/097226290000400206.
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Prudential regulation of banks and financial institutions, especially the stipulation of risk weighted capital adequacy ratio, has brought into sharp focus their inherent weaknesses. The real licence to expand banking is no more a nod from the regulator than the adequacy of capital backup. The situation is getting complex with deregulation and globalisation wherein the inherent risks especially the credit risk and market risk, need to be covered by proper capital adequacy ratio. Asset managers have to be always alert about the inherent risk and return embedded in any proposed asset accretion. Even before stabilising with an adequate CAR, banks are required to gear up with the proposed and more rigorous new capital adequacy framework of Basle Committee. Instead of confining to centralised approach, the banks can plan and monitor continuously asset expansion at zonal/regional and branch levels with a notional concept of capital adequacy. While pricing the assets, especially in a decentralised process of decision making in the form of both fund based and non-fund based exposures, cost of capital for any additional exposure needs to be taken care in the relevant computations. Ultimately the scope for healthy and sustainable growth of any bank depends upon its competitiveness to attract capital which in turn depends upon the economic value added, i.e., return on capital net of opportunity cost of such capital. Now that the government has almost stopped further infusion of capital into (public sector) banks, are the banks capital market fit?
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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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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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Pham, Hai Long, and Kevin James Daly. "The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks." Journal of Risk and Financial Management 13, no. 10 (September 27, 2020): 228. http://dx.doi.org/10.3390/jrfm13100228.
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This paper is an attempt to empirically examine the impact of Basel Accord regulatory guidelines on the risk-based capital adequacy regulation and bank risk management of Vietnamese commercial banks. Our research aims to assess how Vietnamese commercial banks manage their capital ratio and bank risk under the latest Basel Accord capital adequacy ratio requirements. Building on previous studies, this research uses a simultaneous equation modeling (SiEM) with three-stage least squares regression (3SLS) to analyze the endogenous relationship between risk-based capital adequacy standards and bank risk management. A year dummy variable (dy2013) is included in the model to take account of changes in the regulation of the Vietnamese banking system. Furthermore, we add a value-at-risk variable developed by as an independent variable into equations of the empirical models. The results reveal a significant impact of Basel capital adequacy regulatory pressure on the risk-based capital adequacy standards and bank risk management of Vietnamese commercial banks. Moreover, banks under the latest Basel capital adequacy regulations are induced to reduce risks and increase banks’ financial performance.
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Fitri, Fitriyana, Komala Adriyani, and Catur Ragil Sutrisno. "PROFIT DISTRIBUTION MANAGEMENT PADA BANK SYARIAH." MALIA: Journal of Islamic Banking and Finance 2, no. 1 (June 1, 2018): 31. http://dx.doi.org/10.21043/malia.v2i1.4758.
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This study aims to analyze the influence of the proportion of third party funds (DPK), operational cost to operating income (BOPO), financing to deposit ratio (FDR), bank size and capital adequacy ratio (CAR) to profit distribution management at Sharia Bank. The population is all Sharia Commercial Banks in Indonesia, the period of 2012-2015. Samples were taken using purposive sampling technique. The results show that third party funds (DPK), finance to deposit ratio (FDR) and bank size have no significant effect on profit distribution management (PDM). While BOPO and capital adequacy ratio (CAR) have a significant effect on profit distribution management (PDM).
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Mohanty, Seba, and Jitendra Mahakud. "Dynamic Adjustment Towards Target Capital Adequacy Ratio: Evidence from Indian Commercial Banks." Global Business Review 20, no. 3 (June 2019): 757–68. http://dx.doi.org/10.1177/0972150919837082.
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Phuanerys, Eliza Christabella, and Yanuar Yanuar. "Faktor-Faktor yang Memengaruhi Profitabilitas Bank Umum Syariah di Indonesia." Jurnal Manajemen Bisnis dan Kewirausahaan 4, no. 3 (May 21, 2020): 06. http://dx.doi.org/10.24912/jmbk.v4i3.7908.
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This study was conducted to analyze the effect of the Capital Adequacy, Asset Quality, Management Efficiency and Liquidity Management ratios on profitability proxied by bank Return On Assets (ROA), by analyzing the annual financial statements that have been published in 2013-2017. The variables used in analyzing the financial statements of Sharia Commercial Banks that are sampled are Asset Quality which is proxied by Non Performing Financing (NPF), Liquidity Management which is proxied by Financing to Debt Ratio (FDR), Management Efficiency proxied by Net Operating Margin (NOM), and Capital Adequacy proxied by Capital Adequacy Ratio (CAR). The sample in this study was 11 Islamic commercial banks for 5 years, namely 2013-2017. The results showed that Capital Adequacy, Asset Quality, and Liquidity Management significantly influenced the profitability of Islamic commercial banks. Whereas Management Efficiency does not affect the profitability of Islamic commercial banks. Based on these results, Sharia Commercial Banks in Indonesia must increase capital, reduce problematic financing by improving internal processes, and increase bank liquidity by increasing fundraising.
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Cheng, Maoyong, Hong Zhao, and Junrui Zhang. "The Effects Of Ownership Structure And Listed Status On Bank Risk In China." Journal of Applied Business Research (JABR) 29, no. 3 (April 23, 2013): 695. http://dx.doi.org/10.19030/jabr.v29i3.7774.
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This paper investigates the relationship of ownership structure, listed status and risk by using regression analysis based on the relevant data of Chinas commercial banks. Three main results emerge. First, compared to the state-owned banks, foreign-owned commercial banks exhibit better asset quality, lower credit risk and higher capital adequacy ratio; city commercial banks have lower credit risk and joint-stock commercial banks have lower credit risk and capital adequacy ratio. Second, listed status improves the asset quality and capital adequacy ratio. Finally, we also find that the listed status significantly moderates the relationship between ownership structure and risk. In conclusion, this study provides a theoretical reference for the reform of Chinas commercial banks.
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Fitriana, Amalia Indah, and Hendra Galuh Febrianto. "MANAJEMEN RISIKO LIKUIDITAS BANK PERKREDITAN RAKYAT (Studi Empiris pada Bank Prekreditan Rakyat di Tangerang)." Jurnal Profita 11, no. 2 (August 20, 2018): 251. http://dx.doi.org/10.22441/profita.2018.v11.02.007.
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The objective of this research is to analyze BPR liquidity risk management in Tangerang through asset management, leverage and capital adequacy with the final goal of recommending policy to improve BPR liquidity risk management. This type of research uses explanatory research type with quantitative approach. Analysis of data in research using multiple linear regression analysis in panel of financial report data 49 BPR in Tangerang from 2012 until 2016. There are two groups of variables used in this research. The dependent variable in this research is liquidity risk measured by current ratio. The independent variable in this research is asset management measured by total asset turnover, leverage measured with debt to equity ratio and capital adequacy measured by capital adequacy ratio. The results of this study indicate that three hypotheses partially have no effect. But the simultaneous test shows the three variables together have a negative and significant effect.
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Yousuf, Allam, and János Felföldi. "THE EFFECT OF CREDIT RISK MANAGEMENT ON PROFITABILITY: AN EMPIRICAL STUDY OF PRIVATE BANKS IN SYRIA." Oradea Journal of Business and Economics 3, no. 2 (September 2018): 43–51. http://dx.doi.org/10.47535/1991ojbe050.
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The objective of this study is to investigate the effect of credit risk management on profitability in private banks in Syria. Two main criteria have been adopted for the management of credit risk in banks: capital adequacy ratio and non-performing loans. In order to achieve the objectives of the research and to test the hypotheses, an appropriate non-probability sample numbering 6 private banks was selected from those private banks in Syria for which financial reports and risk management reports were available sequentially from 2007 until 2011, because the researchers wanted to investigate the relationship between variables within normal conditions not in the light of instability in Syria. Credit risk was measured by the capital adequacy ratio (CAR), and non-performing loans (NPL), whereas profitability was measured by the ROE indicator by calculating the data and financial reports of sampled banks and showing them in a quantitative manner and identifying the relationship between the variables by using the SPSS program to study the correlation and build the regression equation. The study concluded that there is a statistically significant relationship between capital adequacy and profitability, the capital adequacy ratio affects profitability negatively. Non-performing loans do not effect profitability (ROE). In general, credit risk management accounts for 19% of the profitability of banks.
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Jasevičienė, Filomena, and Daiva Jurkšaitytė. "THE NEW CAPITAL ADEQUACY FRAMEWORK (BASEL III) OPTIONS AND ISSUES IN COMMERCIAL BANKS OF LITHUANIA." Ekonomika 93, no. 4 (January 1, 2015): 119–34. http://dx.doi.org/10.15388/ekon.2014.93.5043.
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Currently, banking is one of the most regulated activities in the world, because banks are the most important institutional units engaged in financial intermediation and affects not only the whole national economy of the country, but the global financial market as well. One of the key components of banking regulation are requirements expected for the bank capital, which prevent the bank from various unforeseen risks incurring substantial losses and are a sort of guarantee to maintain the financial system stability. For this reason, it is useful to find out what factors affect the capital adequacy ratio, and what measures the banks are going to take in order to meet the new capital requirements. The present research reveals the options of the implementation of the new system and the main problems faced by banks. The paper consists of four main parts: review of theory and literature, the research methodology of the factors influencing the capital adequacy, the study of factors influencing the capital adequacy ratio, and the capital adequacy management problem areas according to the Basel III requirements and conclusions.
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Liu, Yachen. "Regulation, Competition and Bank Risk: Evidence from China." Asian Business Research 2, no. 1 (March 14, 2017): 42. http://dx.doi.org/10.20849/abr.v2i1.135.
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This paper uses the semi-annual data of 16 listed banks from the fourth quarter of 2005 to the second quarter of 2016 as the research sample to study the impact of supervision and competition on the listed bank's risk in China. The results show that the higher level of bank holdings (capital adequacy ratio and core capital adequacy ratio) can significantly reduce the combined risk of banks and increase bank stability. Increased liquidity (liquidity ratio and deposit-loan ratio) can reduce bank risk, but this effect is not significant. The more fierce competition among banks (the smaller CR) will not only increase the proportion of weighted risk assets in total assets, but also increase the bank's bankruptcy probability and reduce the overall operating stability of the bank. It is necessary for authorities of policy to strengthen supervision of banking industry, especially the capital adequacy ratio and core capital adequacy ratio regulation and keep the competition of banks under the appropriate interval. It is also necessary for regulators to comply with the latest regulations of Basel III to set up more reasonable liquidity regulatory indicators to meet liquidity risk management.
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Mohamed Hafez, Hassan Mohamed. "Examining the Relationship between Efficiency and Capital Adequacy Ratio: Islamic versus Conventional Banks --- An Empirical Evidence on Egyptian Banks." Accounting and Finance Research 7, no. 2 (April 29, 2018): 232. http://dx.doi.org/10.5430/afr.v7n2p232.
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This paper aims to investigate the relationship between the efficiency of banks in Egypt and capital adequacy ratios. We collected data on a sample of 40 banks comprising Islamic banks, conventional and conventional banks with Islamic windows pre and post the global financial crisis from year 2002 to 2015. We used data envelopment analysis liner programming (DEA) to calculate the efficiency of banks then we used a panel regression analysis through the application of Eviews software to investigate the relationship between the efficiency of banks and capital adequacy ratios. Pre the financial crisis, results, concluded that, there is a significant positive relationship between the efficiency of banks and capital adequacy ratios, credit risk, profitability, bank size and the quality of management. Whilst a significant negative relationship with the liquidity. The efficiency of conventional banks outperformed the efficiency of Islamic and conventional banks with Islamic windows. The increase in capital follows an increase in the level of risk borne by banks and increases capital adequacy ratios which leads to a rise in the loan portfolio and therefore, increase the level of loans provisions, which confirms the high level of efficiency for banks. Capital increase provide an additional protection against any additional risks. Post the financial crisis, the efficiency of banks has been affected especially for conventional banks. The efficiency of conventional and conventional banks with Islamic windows shows a negative significant relationship with capital adequacy ratios. The efficiency of Islamic banks outperformed other banks and shows a positive significant relationship with capital adequacy ratios. Results revealed that the efficiency of banks determines the level of capital and risk borne by banks.
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Marpaung, Annaria Magdalena, and Lizabeth . "Pengaruh Net Interest Margin (NIM) Dan Likuiditas Terhadap Capital Adequacy Ratio (CAR) Pada Bank Yang Terdaftar Di Bursa Efek Indonesia." Jurnal Ilmiah Manajemen Kesatuan 6, no. 1 (July 24, 2018): 017–24. http://dx.doi.org/10.37641/jimkes.v6i1.32.
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Sudirman (2013:93) opined that banks are obliged to provide minimum capital as of 8 (eight) percent. This can be measured using Capital Adequacy Ratio (CAR). CAR is a ratio calculated from the amount of Bank’s capital compared to ATMR. CAR is an indicator of Bank ability to cover its depreciated assets. This is a result from loss, due to risque assets (Dendawijaya, 2005). Fund distribution to the society in the form of loans is a Bank main actitivy other than collecting the fund from third party. The increase in revenues will result in the increasing of capital, such is with an assumption that the earned revenues are reinvested into capitals. In accordance to this, then Net Interest Margin (NIM)is being used to acquire the Bank management ability in managing its productive assets in order to produce net profit. Liquidity ratios are used to measure a Bank ability in fulfilling its short term when due (Kasmir, 2009). The larger the ratios, the more liquid the assets. The relationships of capital and liquidty is firm enough, the Bank does not need to obtain other source of capital to fulfill its short term obligations.
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Pratiwi, Galuh Gita, Nur S. Buchori, and Mustafa Kamal. "Penerapan Manajemen Mutu Dalam Meningkatkan Kinerja Keuangan Bni Syariah Periode 2010 – 2017." JURNAL EKONOMI DAN PERBANKAN SYARIAH 6, no. 2 (August 21, 2019): 83–106. http://dx.doi.org/10.46899/jeps.v6i2.83.
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The aims of this reasearch is to know the impact implimentation of quality management to increase BNI Syariah financial performance. The methods used to measure financial performance in this study is to compare BNI Syariah financial ratios (capital adequacy ratio, rentability ratio, and liquidity ratio). As for the collection methode in this research is used interview and BNI Syariah annual report periode 2010 untill 2017. The result of this study is quality management applied to BNI Syariah has positive impact on the capital adequacy ratio and profability, especially ROA and ROE. As for the implementation of the management quality applied BNI Syariah in accordance with the principles TQM that proclaimed by ISO, namely the customer focus, leadership, enggagement of people, processing approach, improvement, evidence based decision making, and relationship management.
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Kamelia, Eliyanora, and Gustati. "Pengaruh Financing To Deposit Ratio (FDR), Risiko Pembiayaan, Kecukupan Modal, Dana Pihak Ketiga, Suku Bunga, dan Inflasi Terhadap Profitabilitas pada Bank Umum Syariah di Indonesia." Akuntansi dan Manajemen 14, no. 1 (June 1, 2019): 43–57. http://dx.doi.org/10.30630/jam.v14i1.83.
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This study aims to examine the effect of financing to deposit ratio (FDR), financing risk, capital adequacy, third-party funds, interest rates, and inflation on profitability of Islamic Commercial Banks in Indonesia. The independent variables used in this study are financing to deposit ratio (FDR), financing risk, capital adequacy, third-party funds, interest rates, and inflation. The dependent variable is the profitability that measured using the return on assets (ROA). The study population are 13 Islamic Commercial Banks that registered in the Financial Services Authorities and Indonesian Bank during 2013-2017. Determination of sample was made by applying purposive sampling method and obtaining the sample of 9 Islamic Commercial Banks. Analysis of data used is multiple regression with the help of SPSS version 20. The results showed that financing risk had a significant effect on profitability, while financing to deposit ratio (FDR), capital adequacy, third-party funds, interest rates, and inflation had no significant effect on profitability.
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Al Zaidanin, Jamil Salem, and Omar Jamil Al Zaidanin. "The impact of credit risk management on the financial performance of United Arab Emirates commercial banks." International Journal of Research in Business and Social Science (2147- 4478) 10, no. 3 (May 1, 2021): 303–19. http://dx.doi.org/10.20525/ijrbs.v10i3.1102.
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The main purpose of this study is to measure up to what extent the independent factors defined by capital adequacy ratio, non-performing loans ratio, cost-income ratio, liquidity ratio, and loans-to-deposits ratio impact the financial performance of sixteen commercial banks operating in the United Arab Emirates using panel data for the period of 2013-2019. The secondary data was collected from banks and examined by applying standard descriptive statistics and the random effect model for hypothesis testing. It is concluded from the regression outcomes that non-performing loans ratio and cost-income ratio have a significant negative impact on commercial banks profitability in the United Arab Emirates, while capital adequacy ratio, liquidity ratio, and loans -to-deposits ratio all have a very weak positive relationship on the return on assets but they are not determinants of bank’s profitability due to the insignificant statistical impact on it. It is therefore suggested that to enhance financial performance and minimize the risk of non-performing loans in the future, banks must watch very carefully the loans’ performance and analyze thoroughly the clients’ credit history and ability to pay back their debts prior to any approval of loan applications. Furthermore, banks should continuously improve their assets utilization, liquidity, and techniques of managing operating costs, improve the impact of capital adequacy, and the use of deposits for lending activities from a weak positive impact to a significant positive impact on their profitability. The researchers recommend that future studies on credit risk management influence on banks’ financial performance should consider more independent variables and longer periods of study such as twenty or thirty years to have more accuracy and generalized results.
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Park, Jaewon, Minsoo Shin, and Wookjae Heo. "Estimating the BIS Capital Adequacy Ratio for Korean Banks Using Machine Learning: Predicting by Variable Selection Using Random Forest Algorithms." Risks 9, no. 2 (February 1, 2021): 32. http://dx.doi.org/10.3390/risks9020032.
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The purpose of this study is to find the most important variables that represent the future projections of the Bank of International Settlements’ (BIS) capital adequacy ratio, which is the index of financial soundness in a bank as a comprehensive and important measure of capital adequacy. This study analyzed the past 12 years of data from all domestic banks in South Korea. The research data include all financial information, such as key operating indicators, major business activities, and general information of the financial supervisory service of South Korea from 2008 to 2019. In this study, machine learning techniques, Random Forest Boruta algorithms, Random Forest Recursive Feature Elimination, and Bayesian Regularization Neural Networks (BRNN) were utilized. Among 1929 variables, this study found 38 most important variables for representing the BIS capital adequacy ratio. An additional comparison was executed to confirm the statistical validity of future prediction performance between BRNN and ordinary least squares (OLS) models. BRNN predicted the BIS capital adequacy ratio more robustly and accurately than the OLS models. We believe our findings would appeal to the readership of your journal such as the policymakers, managers and practitioners in the bank-related fields because this study highlights the key findings from the data-driven approaches using machine learning techniques.
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Kurniasari, Wiwin. "Analisis Perbandingan Kinerja Keuangan Perbankan Syariah Bank Umum Syariah (BUS) dengan Unit Usaha Syariah (UUS) pada Bank Umum Konvensional." Muqtasid: Jurnal Ekonomi dan Perbankan Syariah 6, no. 1 (June 1, 2015): 81. http://dx.doi.org/10.18326/muqtasid.v6i1.81-103.
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This study aims to analyze the comparative financial performance of Islamic Banking with Conventional Banking (Shariah Business Unit) for each financial ratio and overall. The measurements of banking performance were used in this study are CAMELS ratios (Capital, Asset, Management, Earnings, Liquidity, and Sensitivity to Market Risk). This study uses 11 Shariah Banks and 12 Shariah Business Unit in 2012. This study shows that there are no differences between Shariah Banks and Shariah Business Unit in Capital Adequacy Ratio and Ratio Quality of Earning Asset, but there are differences in Management Ratio, Profitability Ratio, Liquidity Ratio, and Sensitivity Ratio in each and overall.Penelitian ini bertujuan untuk menganalisa perbandingan kinerja keuanganperbankan syariah yaitu Bank Umum Syari ah (BUS) dengan Bank Konvensional dari Unit Usaha Syariah (UUS) untuk masing-masing rasio keuangan dan secara keseluruhan. Ukuran kinerja bank yang digunakan dalam penelitian ini adalah rasio keuangan bank CAMELS (Capital, Asset, Management, Earnings, Liquidity, sensitivity to market risk), yang meliputi Capital Adequacy Ratio (mewakili rasio permodalan), pembentukan penyisihan penghapusan aktiva produktif (mewakili rasio kualitas aktiva produktif), Net Profit Margin/NPM(mewakili rasio manajemen), Return on Assets (ROA), Loan to Deposit Ratio (mewakili rasio likuiditas) dan Interest Rate Risk Ratio (mewakili rasio Sensitivitas terhadap Risiko Pasar).Teknik pengambilan sampel yang digunakan dalam penelitian ini adalah purposive sampling yang merupakan teknik pengambilan sampel dengan pertimbangan atau kriteria tertentu. Sampel yang dipergunakan peneliti adalah11 Bank Umum Syariah (BUS) dan 12 Unit Usaha Syariah (UUS) yang memiliki kelengkapan laporan keuangan tahun 2012 yang berupa neraca, laporan laba rugi, komitmen dan kontinjensi, kualitas aktiva produktif dan informasi lainnya, perhitungan kewajiban penyediaan modal minimum (KPMM). Berdasarkan hasil penelitian, analisis uji beda rata-rata t-Test memperlihatkan tidak ada perbedaan yang signifikan antara kinerja keuangan perbankan syariah pada Bank Umum Syariah (BUS) dengan perbankan konvensional yang mempunyai Unit Usaha Syariah (UUS) jika dilihat dari rasio permodalan (CAR) dan rasio kualitas aktiva produktif (PPAP). Ada perbedaan yang signifikan antara kinerja keuangan perbankan syariah (Bank Umum Syariah) dengan perbankan konvensional yang mempunyai Unit Usaha Syariah (UUS) jika dilihat dari rasio manajemen (NPM), rasio profitabilitas (ROA), rasio likuiditas (LDR), dan rasio sensitifitas terhadap reaksi pasar-Interest Rate Risk Ratio (IRRR), serta jika dilakukan analisis secara keseluruhan kinerja keuangan perbankan syariah.
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Darwanto and Anis Chariri. "Corporate governance and financial performance in Islamic banks: the role of the sharia supervisory board in multiple-layer management." Banks and Bank Systems 14, no. 4 (December 19, 2019): 183–91. http://dx.doi.org/10.21511/bbs.14(4).2019.17.
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This study aims to investigate the impact of Good Corporate Governance (GCG) on the financial performance of sharia banking. GCG is measured by the Board of Commissioners Performance, the Board of Commissioners Composition, the Number of Audit Committees, the Board of Directors, and the Sharia Supervisory Board Performance, whereas financial performance is proxied by Return on Assets, financing risk (Non-Performing Financing), and capital (Capital Adequacy Ratio). Sharia commercial banks registered by Bank Indonesia made the sample of this study. Annual reports and GCG reports of sharia commercial banks from 2014 to 2017 are used as a data source. The study uses a panel data regression approach to analyze the data; some interesting results have been obtained. The Sharia board positively affected financial performance of Islamic banks in terms of return on assets and capital adequacy ratio, and negatively as to non-performing financing. Similarly, the board of directors had a significant impact on the financial performance of Islamic banks in the same direction as the sharia supervisory board in terms of the three components. Meanwhile, the board of commissioners had a significant and positive impact only on the return on assets of Islamic banks in Indonesia.
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Sumanti, Elvis Ronald, and Agus Tony Poputra. "ANALISIS KUALITAS PENERAPAN GOOD CORPORATE GOVERNANCE DAN KINERJA PT BANK MANDIRI (PERSERO) TBK." ACCOUNTABILITY 3, no. 1 (June 23, 2014): 14. http://dx.doi.org/10.32400/ja.4937.3.1.2014.14-22.
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ABSTRAK Tujuan dari laporan akhir ini adalah untuk menganalisis kualitas penerapan Good Corporate Governance dan kinerja PT Bank Mandiri (Persero) Tbk dengan menggunakan rasio CAMEL. Hasil penelitian ini adalah (i) kualitas penerapan GCG masih berada pada kategori sangat baik walaupun ada penurunan dibanding tahun 2011 (ii) Capital Quality mengalami peningkatan (iii) Asset Quality mengindikasikan adanyakenaikan resiko tapi dapat ditangani dengan baik (iv) Management Quality mengalami peningkatan dalam efisiensi biaya (v) Earnings Quality mengalami peningkatan seperti yang diukur dengan ROA dan ROE (vi) Liquidity berpotensi mengalami gangguan karena adanya kenaikan LDR, tapi potensi masalah telah ditangani dengan baik (vii) Secara keseluruhan kinerja perusahaan yang digambarkan oleh rasio CAMEL pada 2012 mengalami peningkatan dibandingkan tahun 2011. Kata Kunci: Good Corporate Governance, CAMEL, rasio kecukupan modal, rasio kredit yang diberikan terhadap aset produktif, rasio kredit bermasalah, rasio imbal hasil rata-rata aset, rasio imbal hasil rata-rata ekuitas, rasio biaya operasional terhadap pendapatan operasional, loan to deposit ratio ABSTACT This final report aims to analyze the quality of Good Corporate Governance implementation and performance of PT Bank Mandiri (Persero) Tbk by using CAMEL ratio. The findings are (i) GCG implementation quality is still categorized as very good regardless of the slight decline in its composite value (ii) capital adequacy has increased (iii) asset quality indicates an increasing risk yet manageable (iv) management quality shows improvement in cost efficiency (v) earnings quality has shown improvement as proxied by ROA and ROE (vi) liquidity poses a potential problem as LDR rises. Nevertheless, company could manage the risk well. Overall, the bank performance in 2012 is better than 2011 as measured by CAMEL ratios. Keywords: Good Corporate Governance, CAMEL, capital adequacy ratio, loan to productive asset ratio, nonperforming loan ratio, return on asset, return on equity, operational cost to operational revenua ratio, loan to deposit ratio
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Salami, Abdulai Agbaje, Ahmad Bukola Uthman, and Mubaraq Sanni. "Bank-Specific Variables and Banks’ Financial Soundness: Empirical Evidence from Nigeria." Zagreb International Review of Economics and Business 24, no. 1 (May 1, 2021): 37–66. http://dx.doi.org/10.2478/zireb-2021-0003.
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Abstract This study examines the explanatory power of capital adequacy, asset quality, management soundness, earnings quality, liquidity and sensitivity to market risk (CAMELS) framework as well as a number of other variables on the financial soundness (measured by regulatory capital adequacy ratios) of banks in Nigeria. The findings, using ordinary least squared (OLS) regression subsequent to the establishment of no panel effects among the sampled banks, reveal the significant explanatory potentials of these bank-specific variables though some give a reversal of their prior expectations. Apart from reawakening the investors’ and depositors’ interest, the findings further have policy implications on the regulation and operation of these financial institutions. The study breaks new grounds in the measurement of capital adequacy using gross revenue ratio and leverage ratio, asset quality using income statement impairment charges for loan losses, and in the inclusion of the sensitivity to market risk most especially in the Nigerian context.
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Navas, J., P. Dhanavanthan, and D. Lazar. "Is Risk Based Capital Ratio a True Measure of the Soundness of Banks? Evidence From India." International Journal of Financial Research 12, no. 3 (January 11, 2021): 92. http://dx.doi.org/10.5430/ijfr.v12n3p92.
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The capital to risk-weighted assets ratio (CRAR) introduced by the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlement (BIS) is widely used as an important measure of the soundness of banks. However, international institutions, academics, and market analytics have increasingly questioned the reliability of the ratio which has been revised a number of times since its inception, to make it more robust. The main objective of the present study is to assess the adequacy of using CRAR as a measure of the soundness of banks. One of the most popular methods used for the analysis of the banks’ financial soundness is CAMELS framework which uses six key dimensions: capital adequacy, asset quality, management quality, earning ability, liquidity, and sensitivity to market risk. Before the introduction of CRAR, the ratio of capital to the total assets was widely used as a measure of capital adequacy in the CAMELS framework. However, when risk-based CRAR was introduced, banking regulators and policymakers started using it in the CAMELS framework for representing capital adequacy. In this paper, we argue that CRAR, as a comprehensive forward-looking measure, encapsulates all the six dimensions of the financial soundness of banks, representing various facets of banking operations, which are covered in the CAMELS framework. We, therefore, develop a theoretical framework to establish the relationship between risk-based CRAR and the important ratios used under the CAMELS framework and then empirically investigate the relationship using a panel regression model using data of Indian banks for the period 2009–2018. The results indicate that CRAR has a significant and theoretically consistent relationship with all six dimensions of the CAMEL framework. The study, therefore, does not only confirm the appropriateness of using CRAR as a measure of the soundness of banks, but also opens up a debate on whether CRAR can be an alternative for the CAMELS framework.
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Elbadry, Ahmed. "Bank’s financial stability and risk management." Journal of Islamic Accounting and Business Research 9, no. 2 (March 5, 2018): 119–37. http://dx.doi.org/10.1108/jiabr-03-2016-0038.
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Purpose This study aims to examine the effect of Saudi bank’s financial stability on risk management. Design/methodology/approach Different ordinary least square models have been used to study the significant effect of banks’ financial stability indicators on different types of risks in Saudi banks. Financial statements were collected of all Saudi banks (12 banks) from 2011 to 2014 from TADAWL website. Findings The results indicate a negative and significant effect of capital adequacy ratio on credit risk. Also, there is a significant and positive effect of leverage ratio on credit risk. Moreover, the results indicate negative and significant effect of provisions, leverage, ratio of loans to deposits and bank size on liquidity risk. Finally, results indicate a positive and significant effect of capital adequacy, provisions, leverage and asset utilization ratio on operational risk and indicate a negative and significant effect of loan-to-deposits ratio on operational risk. A robustness check was used to confirm the results. No differences between small and large Saudi banks was found. All banks are committed to apply Basel accord and Saudi Arabian Monetary Agency (SAMA) regulations. But there is a significant difference in applying SAMA toolkits regulations between 2011 and 2014. The 2014 results reflect very high degree of financial stability in Saudi banks when compared with that of 2011, also greater ability to mitigate risk exposure using different types of macroprudential toolkits stated by SAMA. Research limitations/implications The study is limited to Saudi Banks from 2011 to 2014. Originality/value This is the first paper to use the macroprudential toolkits, suggested by SAMA as financial stability measurements, to examine their effect on different types of risks in Saudi banks. SAMA suggested this group of toolkits to comply with Basel III new regulations and to minimize the degree of risk exposure of Saudi banks.
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Pujaraniam, Santy, Sri Hermuningsih, and Agus Dwi Cahya. "Analisa Perbandingan Kesehatan Bank Menggunakan Metode Camels." Jesya (Jurnal Ekonomi & Ekonomi Syariah) 4, no. 2 (June 1, 2021): 764–74. http://dx.doi.org/10.36778/jesya.v4i2.391.
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Penelitian ini bertujuan untuk mengetahui apakah terdapat perbedaan antara tingkat kesehatan bank konvensional dan bank syariah pada periode 2015-2019. Penelitian ini menggunakan metode CAMELS yang terdiri dari Capital, Asset, Management, Earnings, Liquidity dan Sensitivity to Market Risk agar mengetahui bagaimana kondisi kesehatan suatu bank tersebut. Pada aspek permodalan menggunakan rasio Capital Adequacy Ratio, Non Performing Loan mewakili aspek aset, Net Profit Margin mewakili aspek manajemen, Return On Assets, Return On Equity, Biaya Operasional dan Pendapatan Operasional mewakili aspek rentabilitas, Loan To Deposit Ratio mewakili aspek likuiditas dan Interest Expense Ratio mewakili aspek sensitivitas terhadap risiko pasar. Jenis penelitian yang digunakan adalah penelitian deskriptif kuantitatif dengan menggunakan perangkat lunak SPSS 16. Sumber data pada penelitian ini adalah data sekunder. Teknik pengambilan sampelnya menggunakan purposive sampling. Metode pengumpulan datanya adalah data sekunder. Data yang digunakan dalam penelitian ini merupakan data – data sekunder yang diperoleh melalui situs Bursa Efek Indonesia dan situs resmi setiap sampel bank yaitu berupa laporan keuangan perusahaan selama 5 tahun. Penelitian ini menggunakan uji normalitas dan uji beda atau analisis perbandingan Independent Sample T-test untuk analisis statistik dan uji hipotesis. Hasil analisis ini menemukan tidak terdapat perbedaan antara tingkat kesehatan bank konvensional dan syariah pada rasio Capital Adequacy Ratio, Loan To Deposit Ratio dan Interest Expense Ratio, namun terdapat perbedaan pada rasio Non Performing Loan, Net Profit Margin, Return On Assets, Return On Equity, dan Biaya Operasional dan Pendapatan Operasional. Maka dapat disimpulkan bahwa bank konvensional memiliki kondisi kesehatan yang lebih baik dibandingkan bank syariah selama periode 2015-2019.
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Anggreningsih, Kade Devi, and Made Surya Negara. "PENGARUH NPL, BIAYA OPERASIONAL PENDAPATAN OPERASIONAL, LOAN TO DEPOSIT RATIO, DAN CAR TERHADAP ROA." E-Jurnal Manajemen Universitas Udayana 10, no. 4 (April 27, 2021): 313. http://dx.doi.org/10.24843/ejmunud.2021.v10.i04.p01.
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The purpose of this study was to test and analyze the determinants of profitability in the banking industry on the Indonesian Stock Exchange. The variables that determine the profitability of a bank as measured by Return on Assets (ROA) include: Non Performing Loans (NPL), Operating Costs for Operating Income (BOPO), Loan to Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR). . The method of determining the sample in this research is purposive sampling. The data analysis technique in this study is multiple linear regression analysis. The results showed that NPL and BOPO had a negative effect on ROA, while LDR and CAR had a positive effect on ROA. The theoretical implication of this research is to increase the profitability of a bank, the bank management must be able to suppress NPL and OEOI, as well as increase LDR and CAR. The practical implication of this research is that bank management must always prioritize the principle of prudence in lending, and always increase efficiency in operations so that increased profitability can be achieved. Management must also be able to maintain an optimal level of lending and meet capital adequacy so as to increase profitability.
Keywords: NPL, OEOI, LDR, CAR, and ROA
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Rosdiana, Mega. "ANALISIS TINGKAT KESEHATAN BANK PERKREDITAN RAKYAT (BPR) DENGAN MENGGUNAKAN CAMEL PERIODE 2014 – 2015: STUDI KASUS PADA BPR PP." Jurnal Akuntansi 10, no. 2 (April 1, 2017): 127–50. http://dx.doi.org/10.25170/jara.v10i2.43.
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The purpose of this research is to analyze out risk base bank rating by using CAMELS method over a period of years 2014-2016, are included in the category of healthy, healthy enough , lesshealthy or unhealthy. CAMEL have five aspects, namely the aspect of capital using the ratio of CAR (Capital Adequacy Ratio), aspects of the quality of earning assets using the ratio of KAP (Quality of Earning Assets), aspects of management using the calculations of general management and risk management, aspects of profitability using the ratio of ROA (Return On Assets), and aspects of liquidity using LDR (Loan To Deposit Ratio). This research is quantitative descriptive. The analysis tool to test the hypothesis is the discriminant analysis. The result of this paper are CAR have significant with risk base bank rating
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Das, Ramesh Chandra, Arun Kumar Patra, and Utpal Das. "Management of NPA via Capital Adequacy Norms: Its Effect Upon The Profile of Indian Banks and Credit Deposit Ratio." International Journal of Finance & Banking Studies (2147-4486) 3, no. 1 (January 19, 2016): 62. http://dx.doi.org/10.20525/.v3i1.169.
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<div><p>The reform agenda in the financial as well as banking sector in the Indian economy was not only in the target of achieving profitable banking business but also to reduce the magnitude of banking funds locked in the bad debt account so that, among others, the real delivery of credit (the credit-deposit ratio) rises in overall fronts. The Narasimham Committee Report in respect of reducing magnitude of non- performing assets has been framed in line with the Basel Norm regarding the asset quality of the banks where capital adequacy ratio has been fixed for different banks to achieve within different time periods. The present study, under such a back ground, has been structured to examine the profile of all Scheduled Commercial Banks in all ranges of CRAR over time in aggregate and bank group specific and to measure degree of correlation of NPA-Deposit ratio with CRAR trends and Credit-Deposit Ratio in all ranges of CRAR and their significance levels for the time period 1995-96 to 2009-2010. It has been observed that there has been variation across banks in following the guidelines of the reform committee. SBI group and foreign banks have been performing well in this respect. There has been rising trend of the proportions of banks in the above 10 per cent range of CRAR. The NPA/D ratio and C-D ratio have been observed to be positively and negatively correlated respectively for the first three ranges of CRAR and reverse in the above 10 per cent range. The correlation between the NPA/D ratio and C-D ratio is negative and significant.</p></div>
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Navas, J., P. Dhanavanthan, and D. Lazar. "Is Risk Based Capital Ratio a True Measure of the Soundness of Banks? Evidence From India." International Journal of Financial Research 12, no. 3 (January 11, 2021): 92. http://dx.doi.org/10.5430/ijfr.v12n3p92.
Full textAbstract:
The capital to risk-weighted assets ratio (CRAR) introduced by the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlement (BIS) is widely used as an important measure of the soundness of banks. However, international institutions, academics, and market analytics have increasingly questioned the reliability of the ratio which has been revised a number of times since its inception, to make it more robust. The main objective of the present study is to assess the adequacy of using CRAR as a measure of the soundness of banks. One of the most popular methods used for the analysis of the banks’ financial soundness is CAMELS framework which uses six key dimensions: capital adequacy, asset quality, management quality, earning ability, liquidity, and sensitivity to market risk. Before the introduction of CRAR, the ratio of capital to the total assets was widely used as a measure of capital adequacy in the CAMELS framework. However, when risk-based CRAR was introduced, banking regulators and policymakers started using it in the CAMELS framework for representing capital adequacy. In this paper, we argue that CRAR, as a comprehensive forward-looking measure, encapsulates all the six dimensions of the financial soundness of banks, representing various facets of banking operations, which are covered in the CAMELS framework. We, therefore, develop a theoretical framework to establish the relationship between risk-based CRAR and the important ratios used under the CAMELS framework and then empirically investigate the relationship using a panel regression model using data of Indian banks for the period 2009–2018. The results indicate that CRAR has a significant and theoretically consistent relationship with all six dimensions of the CAMEL framework. The study, therefore, does not only confirm the appropriateness of using CRAR as a measure of the soundness of banks, but also opens up a debate on whether CRAR can be an alternative for the CAMELS framework.
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Manumpil, Gilbert, Henny S. Taroreh, and Dantje Keles. "Analisis Tingkat Kesehatan Bank Dengan Menggunakan Metode Camel (Capital, Asset, Management, Earning, Liquidity) Pada PT. Bank Negara Indonesia (Persero) Tbk Tahun 2015 – 2017." JURNAL ADMINISTRASI BISNIS 9, no. 1 (July 7, 2019): 49. http://dx.doi.org/10.35797/jab.9.1.2019.23556.49-56.
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The objective of the research is to evaluate the health level of PT. BankNegara Indonesia, Tbk from 2015 until 2017 by applying CAMEL method (Capital Adequacy Ratio, Asset Quality, Management of Risk, Earning Ability, and Liquidity Sufficiency).The object of this research is the financial report of PT. Bank Negara Indonesia, Tbk during three accounting periods form 2015 until 2017, which consists of balance, loss profit, capital, productive asset quality, earning ability, and liquidity reports. The results of the analysis show that capital, assets, management, earning, and liquidity of PT. Bank Negara Indonesia, Tbk are in a good position. The result of the position are showed in the following statements. It can be seen from the following data: the Capital Adequacy Ratio in 2015 was 25,7%; in 2016 was 18,4%; in 2017 was 18,3%. Asset quality which is based on Return on Asset (ROA), in 2015 was 2.45%, in 2016 was 1.89%, and in 2017 was 1.94%. The Management of Risk based on Net Profit Marjin (NPM), in 2015 was 37,1%, in 2016 was 32,5%, and in 2017 was 35,7%. The Earning ability is also based on the operational cost ratio to the operational ability (BOPO), in 2015 was 50,5%, in 2016 was 192,89%, and in 2017 was 181,31%. The Liquidity is based on Loan to Deposit Ratio (LDR), in 2015 was 6.54%, in 2016 was 7.74%, in 2017 was 3.93%. Even though there are increases and decreases in the result of the calculated ratios of CAMEL Pt. Bank Negara Indonesian is at first rank.
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Sofiasani, Gina, and Budhi Pamungkas Gautama. "Pengaruh CAMEL Terhadap Financial Distress Pada Sektor Perbankan Indonesia Periode 2009-2013." Journal of Business Management Education (JBME) 1, no. 1 (June 14, 2016): 138–48. http://dx.doi.org/10.17509/jbme.v1i1.2283.
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Penelitian ini dilatarbelakangi oleh kenaikan kemungkinan bank mengalami financialdistress yang terjadi pada Sektor Perbankan Indonesia periode 2009-2013. Penelitian inibertujuan untuk mengetahui 1) gambaran CAMEL yang terdiri dari unsur capital,management efficiency, earning dan liquidity, 2) gambaran financial distress, 3)Pengaruh capital, management efficiency, earning dan liquidity terhadap FinancialDistress. Metode penelitian yang digunakan dalam penelitian ini adalah deskriptif danverifikatif. Teknik analisis yang digunakan adalah analisis regresi multipel. Populasidalam penelitian ini adalah Sektor Perbankan Indonesia yang berjumlah 120 bank.Sampel yang digunakan sebanyak sembilan bank pada Sektor Perbankan Indonesiaperiode 2009- 2013 dengan menggunakan teknik pengambilan sampel purposivesampling. Hasil penelitian ini, variabel capital yang diukur Capital Adequacy Ratio(CAR) dan liquidity yang diukur Loan to Deposit Ratio (LDR) tidak berpengaruhterhadap Financial Distress sedangkan management efficiency yang diukur BiayaOperasional Pendapatan Operasional (BOPO) dan earning yang diukur Return OnAssets (ROA) berpengaruh terhadap financial distress.
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Fred Nelson, Ossou Ndzila. "The Impact of Credit Risk Management on the Profitability of a Commercial Bank: The Case of BGFI Bank Congo." International Journal of Economics and Finance 12, no. 3 (February 18, 2020): 21. http://dx.doi.org/10.5539/ijef.v12n3p21.
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This study examines the impact of credit risk management on the profitability of BGFI Bank Congo, by identifying credit risk indicators and profitability measurement ratios over the period of 2010-2019. The results indicate that profitability is somewhat affected by credit risk management as measured by its credit risk management indicators. The non-performing loan ratio (NPLR), the capital assets ratio (CAR), and the loan loss provision ratio (LLPR) show a negative impact on ROE. These three ratios contribute negatively, while the CAR makes a positive contribution to Return on assets (ROA) and the ratio of client loans and short-term financing (RCLSTF) on return on equity (ROE). Thus, credit risk management has a significant impact on profitability. The study also shows that other selected credit risk management indicators have a significant impact on the Bank's profitability, such as the loan provision ratio (LLPR) and the clean capital adequacy ratio.
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Chakroun, Fatma, and Fathi Abid. "Optimal CAR simulation." International Journal of Financial Engineering 02, no. 04 (December 2015): 1550035. http://dx.doi.org/10.1142/s2424786315500358.
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The present paper is conceived to expose a new model of bank capital adequacy. Our analysis highly relies on the dynamics of the capital adequacy ratio (CAR) as computed from balance sheet items, namely, loans, securities and bank regulatory capital, in a stochastic dynamic setting. In addition, an attempt is made to demonstrate how the CAR can be optimized in terms of asset allocation and the rate at which the bank remains solvent. Consequently, a dynamic programming principle has been applied to solve the Hamilton–Jacobi–Bellman (HJB) equation explicitly in the case of CRRA utility function. The parameters’ estimation is based on the maximum likelihood method, using Tunisian data relevant to the period 2004–2012. As regard computations, they are carried out in MATLAB. The simulation results have shown the model relevance as a decision tool for bank risk management. Moreover, the relationship persisting between the macroeconomic activity and the bank capital adequacy has also been discussed.
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Velez, Sophia, Michael Neubert, and Daphne Halkias. "Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study." Journal of Risk and Financial Management 13, no. 2 (February 5, 2020): 28. http://dx.doi.org/10.3390/jrfm13020028.
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Compliance measures emphasized in the Dodd-Frank Bill 2010, Section 165 is a response to the 2008 financial crisis, that requires large banks to maintain a minimum capital ratio. The Federal Reserve Bank (Fed) regulates capital of Bank Holding Companies (BHC) through compliance Supervisory Capital Assessment Program (SCAP) 2009 and Comprehensive Capital Adequacy Review (CCAR) 2011 annual stress test of capital. The Fed imposed a minimum capital ratio of 8% that has derailed the risk management objective of capital adequacy, as bank managers are forced to take on more risk to meet the capital ratio. This study concerns senior manager practices that can be effective in meeting compliance requirements posed by the Fed for BHCs. Through a qualitative e-Delphi study, 10 banking finance experts were convened to build consensus on senior manager’s practices that can be effective in meeting compliance requirements. Data were collected from three electronic questionnaires submitted through Qualtrics. Data were analyzed using theoretical triangulation, coding, and thematic analysis. Four important considerations were identified that could bolster compliance measures effectiveness: (a) emphasis placed on understanding regulatory consultant compliance, (b) maintenance of effective and independent compliance align to organizational objectives, (c) clear definition of data source for compliance analytics. These considerations of compliance practices may help senior bank managers reduce risky behaviors and investments that cause significant bank losses.
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Mili, Mehdi, Jean-Michel Sahut, Hatem Trimeche, and Frédéric Teulon. "Determinants of the capital adequacy ratio of foreign banks’ subsidiaries: The role of interbank market and regulation." Research in International Business and Finance 42 (December 2017): 442–53. http://dx.doi.org/10.1016/j.ribaf.2016.02.002.
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Badrul Munir, Maryam binti, and Ummi Salwa Ahmad Bustamam. "CAMEL RATIO ON PROFITABILITY BANKING PERFORMANCE (MALAYSIA VERSUS INDONESIA)." International Journal of Management, Innovation & Entrepreneurial Research 3, no. 1 (July 18, 2017): 30–39. http://dx.doi.org/10.18510/ijmier.2017.314.
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Purpose: This research analyzed about profitability banks performance based on the CAMEL (Capital Adequacy, Asset Quality, Management, Earnings and Liquidity) on the Bank's profitability. Capital adequacy measured by debt equity ratio (DER) and non-performing loans (NPL), asset quality measured by return on assets (ROA), management will be measured by cost per income, earnings measured by return on equity (ROE) and liquidity measured by interest expense and deposit.Methodology: The samples were 114 samples (from 10 bank in Malaysia and 9 bank in Indonesia) since 2010-2015. This analysis used descriptive method and multiple regression analysis, the result of this research indicated that banking profitability have a good performance based on CAMEL analysis.Findings: From the results of regression, the CAMEL analysis has a significant relationship to the bank profitabilityPractical Implications: The study demonstrated the use of CAMEL analysis to measure bank profitability. If bank performance declining through the CAMEL analysis so the Bank should make a decision to make a better performance changes of banking.Social Implications: This study was about the importance of camel analysis measuring the performance banking. CAMEL analysis detected the decrease in performance in any business sector.Originality/Value: This analysis adapted and adopted the study conducted by Sahut and Mili(2011), but this study focusedonly on the comparative performance between conventional and Islamic banking between Malaysia and Indonesia.Research Limitations/Implications: Comparison of CAMEL analysis focused on two countries between Malaysia and Indonesia (it also involves the comparative analysis of conventional and Islamic bank) to gain the profitabilityof banking, ROI with short period since 2010 until 2015
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Beja, Anjeza. "Operational Risk Management and the Case of Albania." European Journal of Multidisciplinary Studies 1, no. 3 (April 30, 2016): 65. http://dx.doi.org/10.26417/ejms.v1i3.p65-72.
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Starting 1999, when operational risk was instroduced for the first time as part of pillar 1 minimum regulatory capital charge, supervisors and the banking industry recognized the importance of such risk in evaluating the risk profiles of financial institutions. The increasing use of automated technology, the growth of e-commerce and the expansion of activity ect. , create increased operational risk, and expose the institution to possible losses. Such risk has been introduced in the regulatory framework of Bank of Albania in 2011 and since then, there have been positive developments in the consideration of this risk from the supervisory point of view. The regulation included qualitative criteria for the identification and monitoring of operational risk, whereas the quantitative measurement of capital charge for operational risk has been introduced through the implementation of capital adequacy ratio regulation based in Basel 2.
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Poovathingal, James Sebastian, and Deepti V. Kumar. "Quantifying the contribution of competencies toward performance." International Journal of Productivity and Performance Management 67, no. 4 (April 9, 2018): 693–716. http://dx.doi.org/10.1108/ijppm-12-2016-0267.
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Purpose Performance management (PM) is an important tool to enhance productivity. However, its Achilles heel is its lack of future orientation. The main reason for this is that PM systems fail to empirically link competencies to results. The purpose of this paper is to address this gap. Design/methodology/approach This study uses literature review and deductive logic to evolve the concept of “Contribution of Competencies (CC)” and proof tests it quantitatively. Findings The impact of a level of competency on the results of a job can be determined by CC. The gap between expected and actual CC can predict future performance, determine the training needs with precision and measure individual efficacy and human capital adequacy of a department/an organization. Research limitations/implications This is single organization research for proof of concept. Multi-organizational research using empirical study linking CC with demonstrated performance can make the concept of CC more robust. Practical implications CC helps to: prioritize training for competencies that would impact performance with surgical precision, fix responsibility for failure to perform on individual/organizational factors, compare individual employees across functions, determine interdepartmental/inter-firm human capital efficacy, and evaluate human capital of a firm. Originality/value Empirical expression of the nature of relationship between competency levels and results through CC and its byproducts, individual efficacy ratio, and human capital adequacy ratio are original contributions.
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Harkati, Rafik, Syed Musa Alhabshi, and Salina Kassim. "Does capital adequacy ratio influence risk-taking behaviour of conventional and Islamic banks differently? Empirical evidence from dual banking system of Malaysia." Journal of Islamic Accounting and Business Research 11, no. 9 (August 26, 2020): 1989–2015. http://dx.doi.org/10.1108/jiabr-11-2019-0212.
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Purpose The purpose of this study is to investigate the influence of capital adequacy ratio (CAR) prescribed in Basel III on the risk-taking behaviour of Islamic and conventional commercial banks in Malaysia. It also investigates the claim that the risk-taking behaviour of Islamic banks (IBs) and conventional banks (CBs) managers is identically influenced by CAR. Design/methodology/approach Secondary data for all CBs operating in the Malaysian banking sector are gathered from FitchConnect database for the 2011–2017 period. Both dynamic ordinary least squares and generalised method of moments techniques are used to estimate a panel data of 43 commercial banks, namely, 17 IBs and 26 CBs. Findings The findings of this study lend support to the favourable influence of CAR set in Basel III accord on risk-taking behaviour of both types of banks. CBs appeared to be remarkably better off in terms of capital buffers. Evidence is established on the identicality of the risk-taking behaviour of IBs and CBs managers under CAR influence. Practical implications Even though a high CAR is observed to hamper risk-taking of banks, the findings may serve as a signal to regulators to be mindful of the implications of holding a high CAR. Similarly, managers may capitalise on the findings in terms of strategising for efficient use of the considerable capital buffers. Shareholders are also concerned about managers’ use of the considerable capital buffers. Originality/value This study is among a few studies that endeavoured to provide empirical evidence on the claim that IBs mimic the conduct of CBs in light of the influence of CAR prescribed in Basel III on risk-taking behaviour, particularly banks operating within the same banking environment.
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Zainuddin, Zainuddin, and Yustiana Djaelani. "APPLYING RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNING AND CAPITAL (RGEC) METHOD TO PREDICT THE BANK HEALTH (CASE STUDY ON PT. BANK TABUNGAN NEGARA)." ACCOUNTABILITY 7, no. 02 (December 31, 2018): 16. http://dx.doi.org/10.32400/ja.24570.7.02.2018.16-32.
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This study aimed to analyze the health of PT. Bank Tabungan Negara (Persero) Tbk over period of 2013 to 2017 RGEC method approach (Risk Profile, Good Corporate Governance, Earnings, Capital). This research is quantitative descriptive method. The variables in this study include Risk Profile using the ratio of Non Performing Loans (NPLs) and loan to Deposits Ratio (LDR), GCG using Composite Rating GCG, Earnings use ratios Return on Assets (ROA) and Net Interest Margin (NIM) and Last Capital uses Adequacy Capital ratio (CAR). The results showed Bank BTN predicate healthy enough where banks are still quite capable of carrying out risk-based banking management well, so they deserve to be trusted community. However, the calculation of the proportion of Loan to Deposits Ratio (LDR) is below standard bank of Indonesia with the predicate less healthy.
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Utama, Cynthia A., and Haidir Musa. "The Causality between Corporate Governance Practice and Bank Performance: Empirical Evidence from Indonesia." Gadjah Mada International Journal of Business 13, no. 3 (September 12, 2011): 227. http://dx.doi.org/10.22146/gamaijb.5481.
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The aim of this study is to examine the existence of causality between corporate governance practice and performance of commercial banks in Indonesia. We also investigate the influence of age, capital adequacy, and type of commercial banks on bank performance and examine the influence of the bank size, foreign ownership, and listing status on corporate governance practice. The result shows that corporate governance practice, bank size and capital adequacy ratio have positive influences on bank performance in Indonesia. However, bank performance does not influence corporate governance practice. This study also finds that regional banks have better performance than private banks. The results of the study support the Central Bank’s efforts to enhance CG practices in the banking sector, to strenghten banks’ capital base and its policy to encourage banks to merge to become larger.
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Wijaya W., Richy. "Rasio Spesifik dan Kinerja Keuangan Bank Umum di Indonesia." Media Riset Bisnis & Manajemen 18, no. 1 (August 19, 2019): 1. http://dx.doi.org/10.25105/mrbm.v18i1.5001.
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<div class="Section1"><p><strong>Abstrak</strong><strong></strong></p><p><strong>Tujuan</strong> - Penelitian yang dilakukan memiliki tujuan untuk menguji dan menganalisa apakah peningkatan kinerja keuangan dapat dipengaruhi oleh rasio permodalan pada perbankan di Indonesia.</p><p><strong>Des</strong><strong>ain</strong><strong>/Met</strong><strong>odologi</strong><strong>/</strong><strong>Pendekatan</strong>- Rasio permodalan diproksikan dengan 5 rasio yaitu <em>loan ratio</em>, <em>deposit ratio, efficiency of management ratio, liquidity assets ratio dan capital adequacy. </em>Untuk menjawab permasalahan yang ada penulis menggunakan sampel dari Bank Umum yang telah tertera pada Bursa Efek Indonesia. Teknik analisis yang digunakan untuk penelitian ini adalah analisis regresi linear data panel. Setelah melakukan proses pengolahan data, peneliti menggunakan metode <em>random effect model</em> untuk memperoleh hasil atas percobaan yang dilakukan<em>. </em></p><p><strong>Temuan - </strong>Hasil yang diperoleh pada penelitian ini menyarankan bahwa untuk meningkatkan kinerja keuangan perbankan harus memperhatikan strategi dalam pemberian pinjaman, alokasi penganggaran dana untuk biaya operasional perusahaan, ketersediaan dana dan nilai kecukupan modal yang dimiliki oleh bank tersebut..</p><p> </p><p><em><strong>Abstract</strong></em></p><p><em><strong>Purpose</strong> - This study aims to test and analyze whether the capital ratio can have a significant impact on improving banking performance. <strong></strong></em></p><p><em><strong>Des</strong><strong>ign</strong><strong>/Met</strong><strong>hodology</strong><strong>/</strong><strong>Approach</strong><strong> -</strong>The capital ratio is proxied by 5 ratios, namely the loan ratio, deposit ratio, efficiency of management ratio, liquidity assets ratio and capital adequacy. To answer the existing problems the author uses a sample from a conventional commercial bank listed on the Indonesia Stock Exchange. The sample is then solved by a linear data panel regression analysis method. After processing data, the method used to give results in this study is a random effect model.</em></p><p><em><strong>Finding </strong>- The results of this study provide advice to those who have an interest that to improve performance must pay attention to the strategies in lending, budgeting allocation of funds for company operational costs, availability of funds and the capital adequacy value of the bank.</em></p></div>
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Patmin, Su. "Analisis Rasio Tingkat Kesehatan Bank Menggunakan Metode CAMEL Pada PT Bank BCA Syariah Tbk Jakarta Timur Tahun 2013 - 2017." Jurnal Madani: Ilmu Pengetahuan, Teknologi, dan Humaniora 3, no. 2 (September 9, 2020): 212–27. http://dx.doi.org/10.33753/madani.v3i2.83.
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The purpose of this study was to determine the development of bank health at PT Bank BCA Syariah Tbk and to measure the level of health of PT Bank BCA Syariah Tbk in 2013-2017 using the CAMEL ratio which includes aspects of capital, productive assets, management, profitability and liquidity. This research is quantitative descriptive. The population in this study includes all financial statements of PT Bank BCA Syariah for the period 2013 to 2017, while the sample in this study is the company's financial statements in the form of a balance sheet and income statement of PT. Bank BCA Syariah Tbk. period 2013 to 2017. Analysis of the data used in this study is to use the CAMEL method which consists of five aspects, namely capital aspects using CAR (Capital Adequacy Ratio), aspects of earning asset quality using the ratio of KAP (Earning Assets Quality) and PPAP (Allowance for Earning Assets), management aspects using the ratio of NPM (Net Profit Margin), profitability aspects using the ratio of ROA (Return On Assets) and BOPO (Operating Expenses to Operating Income), and the liquidity aspect using the NCM-CA (Net Call Money ratio) to Current Assets) and LDR (Loan to Deposit Ratio). Based on the results of research conducted at PT Bank BCA Syariah CAMEL in 2013 97.04 was healthy, in 2014 96.71 was healthy, in 2015 95.52 was healthy, in 2016 97.01 was healthy, in 2017 98.00 is healthy.
Abstrak
Tujuan penelitian ini untuk mengetahui perkembangan kesehatan bank pada PT Bank BCA Syariah Tbk dan untuk mengukur tingkat kesehatan PT Bank BCA Syariah Tbk pada tahun 2013-2017 dengan menggunakan rasio CAMEL yang meliputi aspek permodalan, aktiva produktif, manajemen, rentabilitas dan likuiditas. Penelitian ini bersifat deskriptif kuantitatif. Populasi dalam penelitian ini meliputi seluruh laporan keuangan PT Bank BCA Syariah periode tahun 2013 sampai dengan 2017, sedangkan sampel dalam penelitian ini adalah laporan keuangan perusahaan berupa neraca dan laporan laba rugi PT. Bank BCA Syariah Tbk. periode 2013 sampai dengan 2017. Analisis data yang digunakan dalam penelitian ini adalah dengan menggunakan metode CAMEL yang terdiri dari lima aspek, yaitu aspek permodalan menggunakan rasio CAR (Capital Adequacy Ratio), aspek kualitas aktiva produktif menggunakan rasio KAP (Kualitas Aktiva Produktif) dan PPAP (Penyisihan Penghapusan Aktiva Produktif), aspek manajemen menggunakan rasio NPM (Net Profit Margin), aspek rentabilitas menggunakan rasio ROA (Return On Assets) dan BOPO (Beban Operasional terhadap Pendapatan Operasional), dan aspek likuiditas menggunakan rasio NCM-CA (Net Call Money to Current Assets) dan LDR (Loan to Deposit Ratio). Berdasarkan hasil penelitan yang telah dilakukan pada PT Bank BCA Syariah CAMEL pada tahun 2013 97,04 adalah sehat, tahun 2014 96,71 adalah sehat, tahun 2015 95,52 adalah sehat, tahun 2016 97,01 adalah sehat, tahun 2017 98,00 adalah sehat.
Kata Kunci : Rasio Tingkat Kesehatan Bank, CAMEL
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Idawati, Ida Ayu Agung, I. Gede Surya Pratama, and IA Cynthia Saisaria Mandasari. "PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM PADA BANK UMUM MILIK PEMERINTAH." WIDYA MANAJEMEN 1, no. 1 (November 12, 2018): 1–17. http://dx.doi.org/10.32795/widyamanajemen.v1i1.227.
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One of the considerations of investors in investing in shares is fluctuations in stock prices. Stock prices are one indicator of the success of company management. Investor or prospective investor trust is very beneficial for the issuer, because the more people who trust the issuer, the stronger the desire to invest in the issuer. The purpose of this study was to determine the financial performance as measured by the variable Capital Adequacy Ratio (CAR), Net Profit Margin (NPM), Loan to Deposit Ratio (LDR) and Return On Equity (ROE) to the stock prices of government-owned commercial banks on the IDX.
The technical analysis used in this study is multiple linear regression and t (t-test) for partial analysis. Based on the results of multiple linear regression analysis, the regression equation Y = 18.905 + 0.149 (X1) +0.393 (X2) -0.487 (X3) + 0.238 (X4) is obtained. T-test testing from the regression results obtained that the Capital Adequacy Ratio and Return On Equity partially did not have a significant effect on stock prices. While the Net Profit Margin and Loan to Deposit Ratio partially have a significant effect on stock prices.
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Handayani, Erna, Alni Rahmawati, Naelati Tubastuvi, and Ira Hapsari. "Performance analysis of sharia commercial banks in Indonesia before the covid pandemic period (2015-2019)." International Journal of Research in Business and Social Science (2147- 4478) 10, no. 2 (March 21, 2021): 228–37. http://dx.doi.org/10.20525/ijrbs.v10i2.1010.
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Overcoming the impact of the Covid pandemic on Islamic banking in Indonesia, management must take strategic steps based on predictions and previous performance identification. Identify performance, information on the factors that affect the performance of Islamic banking in Indonesia is needed. Several aspects that are considered to affect Islamic banking performance that management must consider are capital, liquidity aspects, credit risk, and efficiency. This research examines the influence of the aspects of capital (Capital Adequacy Ratio and Third Party Funds), liquidity (Finance to Debt Ratio ), credit risk (Non-Performing Financing).) and operational efficiency (BOPO) on the performance of Islamic banking in Indonesia 5 (five) years before the Covid pandemic occurred in Indonesia (2015-2019). The results showed that these five aspects had a simultaneous effect on Islamic banking performance in Indonesia, with a termination coefficient of 94.4%. Of the five variables, CAR, FDR, NPF, and BOPO significantly affect performance, while TPF has no significant effect on performance (Return on Assets).