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1
Nizami oğlu İslamzadə, Sarvan. "The place and role of commercial banks in economic development." SCIENTIFIC WORK 76, no. 3 (March 18, 2022): 168–72. http://dx.doi.org/10.36719/2663-4619/76/168-172.
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Kommersiya banklarının əsas funksiyası əhalidəki pul kütləsini əmanət kimi toplamaq və onlarla müştərilərinə qısamüddətli kreditlər vermək olan banklardır. Bunlara bəzən depozit bankları da deyirlər. Banklar emissiya bankları, investisiya və inkişaf bankları, xüsusi təyinatlı banklar və kommersiya bankları kimi bir neçə növləri olduğu zaman, əksər ölkələrdə kommersiya bankları ən böyük payı təşkil edir. Onlar topladıqları vəsaitin bir hissəsini (mərkəzi bank tərəfindən müəyyən edilən depozit ehtiyatı tələbləri) gündəlik ehtiyaclar üçün ehtiyat kimi ayırır, qalan hissəsini isə ticarət və sənaye yerləşdirmələrində istifadə edirlər. Kommersiya banklarının digər əsas xüsusiyyəti isə əmanətçilərlə sıx əlaqə saxlamağıdır. Açar sözlər: bank, kommersiya bankı, kredit, istehlak krediti Sarvan Nizami Islamzade The place and role of commercial banks in economic development Abstract The main function of commercial banks is to collect money from the population as deposits and to provide short-term loans to dozens of customers. These are sometimes called deposit banks. While there are several types of banks, such as issuing banks, investment and development banks, special purpose banks, and commercial banks, in most countries, commercial banks account for the largest share. They allocate part of their savings (deposit reserve requirements set by the central bank) as a reserve for daily needs, and use the rest for commercial and industrial installations. Another key feature of commercial banks is their close contact with depositors. Key words: bank, commercial bank, loan, consumer loan
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Rahmi, Amelia. "ANALISIS TINGKAT KESEHATAN BANK UMUM BUMN KONVENSIONAL DAN BANK UMUM BUMN SYARIAH." JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi) 5, no. 1 (January 4, 2020): 63–72. http://dx.doi.org/10.34203/jimfe.v5i1.1644.
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The purpose of this study is to determine the soundness of sharia BUMN Bank and conventional BUMN bank if measured by RGEC method in 2014-2018. This research is a comparative study that is a study that is comparing, the variable is the same as the independent variable, but for samples that are more than one, or in a time frame different. The population of this study is the Conventional BUMN Bank and Islamic BUMN Bank with period observations between 2014 and 2018. While the sample in this study taken by using a purposive sampling technique. The results showed that the risk of conventional commercial bank loans with Islamic commercial banks there are differences. That commercial bank GCG conventional with Islamic commercial banks there are differences. That conventional commercial bank earnings with Islamic banks there are differences. That conventional commercial bank capital with banks general sharia there are differences. This means that the soundness of conventional commercial banks and banks general sharia based on RGEC there are differences.
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Prihatin, Khristina Sri. "ANALISIS PERBANDINGAN KINERJA KEUANGAN BANK SYARIAH DAN BANK KONVENSIONAL." Progress: Jurnal Pendidikan, Akuntansi dan Keuangan 2, no. 2 (August 28, 2019): 136–46. http://dx.doi.org/10.47080/progress.v2i2.615.
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The objectives of this research to make compare the finance performance between Islamic Commercial Banks and Conventional Commercial Banks in Indonesia in the period 2012-2016 by using financial ratios. Financial ratios are used consisting of CAR, KAP, NPL,and ROA. The purpose of this research is to find out whether there is a difference between the performance of Islamic bank financial statements when compared to conventional banks as a wholeAnalytical techniques used to see comparison of financial performance of Islamic Commercial Banks with Conventional Commercial Bank is the quantitative method that use spss. The analysis showed that there are significant differences for each financial ratio between Islamic Commercial Banks and Conventional Commercial Banks in Indonesia. Islamic Commercial Banks has better performance in terms of LDR ratios, while the Conventional Commercial Banks better performance in terms of the CAR, KAP, NPL, and ROA.
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V.D., Kolychev, and Solovov D.V. "Methods and Mechanisms of a Subsystem Formation of Financial Monitoring of Suspicious Operations in Commercial Bank." KnE Social Sciences 3, no. 2 (February 15, 2018): 279. http://dx.doi.org/10.18502/kss.v3i2.1555.
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In this paper the peculiarities of the contour formation of the suspicious operations proceeding in commercials bank using AML/CFT (Anti-Money Laundering/Counter-Financing of Terrorism) issues accepted in present time in practical sphere of commercial organizations are presented. The structure of the AML/CFT section in commercial bank is presented which is structuring on the basis of the business-applications infrastructure using special automated bank software. The attention is paid to perspective blockchain technology which is taking wider application during implementation and exploitation of IT-projects related to electronical banks’ services. Keywords: Blockchain, financial monitoring, business-application, front-office, commercial bank, register of remote data, transaction
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POLOVA, Olena, and Hanna BALALAIEVA. "Commitments of commercial bank management." Economics. Finances. Law, no. 11/2 (November 21, 2019): 21–24. http://dx.doi.org/10.37634/efp.2019.11(2).5.
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One of the basic problems of the banking system is the resource providing for the bank activities, and so the question of the resource potential management of the institution is actual today. The article deals with the economic essence and structure of the liabilities of commercial banks. A review of the specific features of banking and bank management defines the goal in the liability management. The dynamics of the resource base of Ukrainian banks. The article deals with the overall analysis of management problems for involved and borrowed resources of banks. Attention is concentrated on factors of banks' resources. Summarizes the main methods of deposit liability management. Considers the features of the borrowed resources management. Defines the main parameters of the resource base formation. Proposed future directions of research in the field of the liabilities management . The purpose of the study is to determine the peculiarities of managing the obligations of commercial banks and improve the methodology of this process. In the course of the study, attention was drawn to the process of forming a commercial bank's resource base, where two main management parameters need to be considered - the value of borrowed and borrowed funds and their volume. The most common source of formation of bank resources is customer deposits. The need to attract non-deposit resources arises in the event of a lack of current liquidity or as a result of an attempt to balance payment flows at subsequent dates. Further research should be directed to substantiate the methods, instruments and instruments of deposit and non-deposit policy, which will provide not only sufficient capital but also a high rating of a banking institution. It is determined that price and non-price management methods are used to provide the desired structure, volume and level of expenses on deposit liabilities. The essence of pricing methods is to use the interest rate on deposits as the main lever in the competition for free cash of individuals and legal entities. Raising the bid offered by the bank makes it possible to attract additional resources.
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Shamki, Dhiaa, Ibrahim Khalaf Alulis, and Karima Sayari. "Financial Information Influencing Commercial Banks Profitability." International Journal of Economics and Finance 8, no. 6 (May 24, 2016): 166. http://dx.doi.org/10.5539/ijef.v8n6p166.
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<p>The paper investigates the influence of bank capital ratio, size and loans on the profitability of a commercial bank in Jordan. It also evaluates whether returns on Assets (ROA) or returns on equity (ROE) is the better indicator that reflects bank profitability. Two Multiple regression models are used to test the influence of capital ratio, size and loans of a commercial bank on its profitability indicators measured by ROA and ROE and to detect the superiority between the two indicators for 13 Jordanian commercial banks for the period 2005-2013. The results of the study showed that capital ratio, size and loans have insignificant influence on ROA, but not on ROE except bank size. Regarding ROE, significant negative and positive influence for capital ratio and loans respectively are concluded. Although the small number of commercial banks in Jordan and some variables have not been well researched in literature, the paper presents a sight to associate bank performance/profitability proxied by ROA and ROE with its capital ratios, size and loans. Our results might assist bank management to capitalize the factors that could improve banks performance and hedge against the adverse factors.</p>
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Author, Contributing, and Mohammad Ahsan Ullah. "Bank Profitability in Bangladesh: A Comparative Study of a Nationalized Commercial Bank with That of a Private Commercial Bank." Journal of Management and Research 6, no. 2 (January 17, 2020): 138–70. http://dx.doi.org/10.29145/jmr/62/060206.
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The main aim of the study is to evaluate and compare the performance of public and private banks in Bangladesh. Performance measured in terms of bank’s profitability always remains the focal point of all the banking activities. Data collected from publically and privately owned and managed banks in Bangladesh revealed that profitability of both banks was not satisfactory though private sector bank was more profitable than public sector bank during the period of this study.
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Bace, Edward. "Vietnamese Commercial Banks and Corporate Governance." Summer 4, no. 2 (July 31, 2019): 73–81. http://dx.doi.org/10.35609/jfbr.2019.4.2(4).
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Objective – Corporate governance is a focus of bank managers and stakeholders, especially after the financial crisis. Contributing to firm and bank difficulties is weakness in managing internally and externally, making governance critical; even more so for banks which play a central role in the economy, allocating capital, lowering risk for businesses and individuals, and ensuring stability and sustainability. Bank failures in the crisis (2008-2016) highlighted governance and risk in developed nations and in developing ones, such as Vietnam. This paper studies governance in bank performance and risk, using theoretical frameworks and empirical study. Methodology – Fundamental governance is reviewed, for banks in particular, in two widely used frameworks. Prior research relates bank performance (share return and return on assets, ROA), risk (capital adequacy ratio, CAR) and governance (board size, BS; number of committees, NC; independent directors to total, NID). Findings – As our models show, NC and NID relate positively to bank performance. CAR has a positive link to governance. Novelty – Our recommendation is that banks in Vietnam must have effective boards to boost performance. Type of Paper: Empirical. Keywords: governance; banking; crises; Vietnam; performance Reference to this paper should be made as follows: E. Bace. 2019. Vietnamese Commercial Banks and Corporate Governance, J. Fin. Bank. Review 4 (2): 73–81 https://doi.org/10.35609/jfbr.2019.4.2(4) JEL Classification: M14; D21; G21; G34
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Yimer, Mitku Malede. "Lending and Cash Required Reserve: Empirical Evidence from Ethiopian Commercial Bank." European Scientific Journal, ESJ 14, no. 13 (May 31, 2018): 179. http://dx.doi.org/10.19044/esj.2018.v14n13p179.
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The study was mainly intended to determine the effect of cash required reserve on commercial bank lending in Ethiopia using panel data of eight purposively chosen commercial banks over the period of eleven years (2005 to 2015). The investigation tested the relationship between commercial bank lending and cash required reserve. Eleven years financial data of eight purposively chosen commercial banks were used for analysis purpose. Ordinary least square model was applied to test the impact of predictor variable on commercial bank lending. The result suggests that, there is no significant relationship between commercial bank lending and cash required reserve in Ethiopian commercial. This study suggests that commercial bank have to give less emphasis to cash required reserve because it doesn’t weakens banks credit creation ability and does not leads a bank to be insolvent.
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Hafidzi, Achmad Hasan, Achmad Syahfrudin Zulkarnaeni, Nurhayati Megayani, and Nita Herlina. "STRATEGI KEUANGAN MATRIKS: ALAT BANTU KEPUTUSAN INVESTASI DAN PEMBIAYAAN PADA PERBANKAN SYARIAH DI INDONESIA." BISMA: Jurnal Bisnis dan Manajemen 14, no. 3 (November 30, 2020): 199. http://dx.doi.org/10.19184/bisma.v14i3.18003.
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This study analyzes Islamic commercial banks' financial conditions using a matrix financial strategy, with its growth, investment decisions, and financing approach. The measuring instruments used are ROIC, WACC, and EVA. This research sample was 12 Islamic commercial banks in Indonesia, taken by using the purposive sampling technique. The results showed that 7 Islamic commercial banks were in quadrant three, i.e., BRI Syariah, BNI Syariah, Bank Syariah Mandiri, Bank Syariah Mega Indonesia, and Bank Panin Syariah. Then, there were four sharia commercial banks in quadrant two, namely Bank Syariah Bukopin, BCA Syariah, Maybank Syariah, and BTPN Syariah. There was one sharia commercial bank in quadrant 1, namely Bank Muamalat. Using a matrix financial strategy, Islamic commercial banks can develop strategies that lead to the effectiveness of investment decisions and financing decisions.
Keywords : EVA, matrix financial strategy, ROIC, WACC
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Serwadda, Isah. "Determinants of Commercial Banks’ Profitability. Evidence from Hungary." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 66, no. 5 (2018): 1325–35. http://dx.doi.org/10.11118/actaun201866051325.
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This paper aims to find out whether bank‑specific (internal) factors impact on the profitability of commercial banks in Hungary for 16 a year period ranging from 2000–2015. The study employs a sample of twenty‑six commercial banks with four hundred sixteen observations. The study employs return on average assets (ROAA) as a proxy for bank profitability, and it also considers bank‑specific (internal) factors as independent variables. These include asset quality (non‑performing loans), overhead costs, bank size, net interest margin, and liquidity risk plus capital adequacy ratio. The study uses panel regressions, descriptive statistics and correlation analysis for the investigations. The panel regression models are to estimate the impact of bank‑specific (internal) factors on bank profitability. The Hausman specification test was conducted on the panel regression models in order to identify the best and appropriate model for the study. The empirical findings reveal that non‑performing loans, overhead costs and liquidity had a significant negative impact on bank profitability as bank size had a significant positive impact on profitability. However, net interest margin and capital adequacy ratio had no impact on bank profitability. The study concludes that bank size and asset quality are bank‑specific factors that have the biggest impact on commercial banks’ profitability in Hungary for the period under investigation. The study recommends that commercial banks should endeavor to manage and reduce overhead costs to be able to earn more profits since overhead costs adversely affect bank profitability. More so, commercial banks’ managers should regularly monitor credit and liquidity risk indicators as well as pursuing diversification policies of income sources while upholding optimisation of operational costs.
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Rahmawati, Azizah Kartika, S. R. Kartika Sari, and Herry Hermawan. "Analisis Perbandingan Efisiensi Bank Umum Konvensional dan Bank Umum Syariah di Indonesia." Akuntabilitas 12, no. 2 (December 4, 2019): 191–200. http://dx.doi.org/10.15408/akt.v12i2.12600.
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The purpose of this study was to determine the level of efficiency between conventional commercial banks and Islamic commercial banks. The sampling technique used in this study was purposive sampling by taking state-owned banks and Islamic commercial banks with the highest assets. Efficiency measurement in this study uses the Data Envelopment Analysis (DEA) method. The results of this study indicate that there are differences in efficiency between conventional commercial banks and Islamic commercial banks. Overall, each bank has an efficiency level of 93.67% (conventional commercial banks) and 99.99% (Islamic commercial banks). These results indicate that Islamic commercial banks are more efficient than conventional commercial banks.
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Poudel, Shiva Raj. "ASSESSMENT OF CREDIT RISK IN NEPALI COMMERCIAL BANKS." Journal of Applied and Advanced Research 3, no. 3 (May 14, 2018): 65. http://dx.doi.org/10.21839/jaar.2018.v3i3.137.
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The main objective of the study is to identify the major indicators of credit risk among the Nepali commercial banks. The study is conducted using the sample of 15 commercial banks operated in Nepali economy. One way Fixed Effect Model (FEM) of panel data analysis is used as a major tool of analysis. All the data for the study were obtained from the database of Nepal Rastra Bank for bank specific variables and database of World Bank for macroeconomic variables for the year 2002/03 to 2014/15. The credit risk among the commercial banks in Nepal was regressed on bank specific variables such as liquidity, capital adequacy ratio, bank size, and interest spread. Similarly, the effects of macro-economic variables such as GDP growth, rate of inflation and interbank interest rate were also examined along with bank specific variables in identifying credit risk in Nepali commercial banks. The study reveals that liquidity has the significant positive impact on credit risk in Nepali commercial banks. In contrast, capital adequacy ratio and interest spread have the significant negative impact on credit risk. The analysis further confirmed that bank size and interest spread both have no any clear direction of impact on credit risk. Moving towards the GDP growth, credit risk in Nepali commercial banks is negatively fluctuates with GDP growth, however, the statistics show the coefficients are insignificant at 5% level. Contrarily, Inter-bank interest rate has insignificant negative impact on credit risk in Nepali commercial banks.
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Anto, Randi, Irene Rini Demi Pangestuti, Sugeng Wahyudi, and Eriesta Novia Purwandari. "Determinants of the Commercial Bank’s Efficiency in ASEAN." Research in World Economy 12, no. 2 (January 11, 2021): 77. http://dx.doi.org/10.5430/rwe.v12n2p77.
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The purpose of this study is to analyze the influence of capitalization, bank size, bank age, and loan to asset ratio (LAR) to bank efficiency in ASEAN-5 countries (Singapore, Indonesia, Thailand, Malaysia, and the Philippines). Net interest margin (NIM) and non-net interest income (Non-NIM) were used as control variables. There was a total of 58 banks used as a sample using a purposive sampling technique. There were two stages of the analytical method used: data envelopment analysis (DEA) approach – to provide estimates of bank efficiency, and multiple regression linear – consists of the statistical F-test and t-test, coefficient of determination (R2) test and the classic assumption test. The results show that capitalization and bank age affect bank efficiency negatively, while bank size and LAR affect bank efficiency positively. The banks are suggested to consider optimizing their capital to continue to operate efficiently, increase their assets to be more efficient, the older banks are expected to be able to adjust to technological developments, and the banks are also expected to increase the amount of credit by monitoring its quality to be efficient.
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Anto, Randi, Irene Rini Demi Pangestuti, Sugeng Wahyudi, and Eriesta Novia Purwandari. "Determinants of the Commercial Bank’s Efficiency in ASEAN." Research in World Economy 12, no. 2 (January 11, 2021): 77. http://dx.doi.org/10.5430/rwe.v12n2p77.
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The purpose of this study is to analyze the influence of capitalization, bank size, bank age, and loan to asset ratio (LAR) to bank efficiency in ASEAN-5 countries (Singapore, Indonesia, Thailand, Malaysia, and the Philippines). Net interest margin (NIM) and non-net interest income (Non-NIM) were used as control variables. There was a total of 58 banks used as a sample using a purposive sampling technique. There were two stages of the analytical method used: data envelopment analysis (DEA) approach – to provide estimates of bank efficiency, and multiple regression linear – consists of the statistical F-test and t-test, coefficient of determination (R2) test and the classic assumption test. The results show that capitalization and bank age affect bank efficiency negatively, while bank size and LAR affect bank efficiency positively. The banks are suggested to consider optimizing their capital to continue to operate efficiently, increase their assets to be more efficient, the older banks are expected to be able to adjust to technological developments, and the banks are also expected to increase the amount of credit by monitoring its quality to be efficient.
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Musau, Salome, Stephen Muathe, and Lucy Mwangi. "Financial Inclusion, Bank Competitiveness and Credit Risk of Commercial Banks in Kenya." International Journal of Financial Research 9, no. 1 (November 30, 2017): 203. http://dx.doi.org/10.5430/ijfr.v9n1p203.
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This paper provides an empirical analysis of the synergies and trade-offs between financial inclusion and credit risk of commercial banks in Kenya. The paper analyzed the effect of financial inclusion on credit risk and the mediation effect of bank competitiveness of commercial banks in Kenya. Financial inclusion was measured using three dimensions of bank availability, bank accessibility and bank usage, bank competitiveness used (HHI) while credit risk was represented by the non performing loans ratio. The study was anchored on financial intermediation theory supported by finance growth theory and asymmetry information theory. The target population was all the 43 commercial banks in Kenya. The study used secondary data collected from Central Bank of Kenya annual reports; commercial banks of Kenya published audited financial statements and annual data from Central Bureau of statistics of Kenya for the period of 2007-2015. Data was analyzed using descriptive statistics and panel multiple regression analysis. The results obtained found that bank availability, bank accessibility and bank usage had significant effect on credit risk of commercial banks in Kenya. Bank competitiveness was found to partially mediate the relationship between financial inclusion and credit risk. From the findings the study concluded that financial inclusion has a significant effect on stability of commercial banks in Kenya. The study recommends that commercial banks to formulate policies to ensure they remain stable and competitive while accommodating their activities to ensure financial inclusion, hence forming an all inclusive and stable financial sector over time.
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Acquah, Joseph, Yusif Arthur, and Damianus Kofi Owusu. "Analysis of the Relationship between Credit Risk and Bank Performance of Some Commercial Banks in Ghana." International Journal of Business and Management Research 8, no. 2 (June 30, 2020): 34–51. http://dx.doi.org/10.37391/ijbmr.080202.
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This study analysed the relationship between credit risk and bank financial performance of selected commercial banks in Ghana for the period 2010 - 2014, using the banks respective financial statements. The study employed the quantitative research approach. The sample was Ghana Commercial Bank Limited, Zenith Bank Limited, UT Bank and Ecobank Plc. These four banks were selected using stratified random sampling technique. The data were primarily secondary and quantitative in nature. Both descriptive and inferential statistics were used to analyse the data. When the banks were compared, Ghana Commercial Bank Limited was found to be more liquid than Zenith Bank Limited. That of Zenith bank was also higher than UT bank and Ecobank Plc .However, profitability indicators showed that Zenith Bank Limited and Ecobank Plc utilised its assets better than Ghana Commercial Bank Limited and UT bank resulting in the two banks higher scores over the period. The findings show further that Ghana Commercial Bank Limited showed higher ratios for investment in the future while Zenith Bank Limited showed higher ratios of higher dividend immediately. However, Zenith Bank Limited capital adequacy level was far higher than the legal requirement of Banking sector while its counterparts fell slightly below it in terms of average. Based on the main findings and conclusions, it is recommended that Ghana Commercial Bank Limited should find a means of reducing its expenditure, introducing prudent assets management, should be cautious when assisting government in time of economic difficulty, and operate as an independent entity.
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Adewole, J. A., F. D. Dare, and J. K. Ogunyemi. "Implications of Financial Intermediation on The Performance of Commercial Banks in Nigeria: 2000-2017." Financial Markets, Institutions and Risks 3, no. 4 (2019): 94–105. http://dx.doi.org/10.21272/fmir.3(4).94-105.2019.
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The paper examined the arguments and counterarguments within the scientific discussion on Financial Intermediation and the performance of Commercial banks in Nigeria. Despite a series of reforms and restructuring aimed at enhancing the bank’s ability to provide services effectively, establish branch networks and finance the real sector, there is still insufficient domestic credit to commercial real-estate banks, affecting the success of financial intermediation in the Nigerian commercial banking sector. The main purpose of this study is to examine the impact of financial intermediation on the performance of commercial banks in Nigeria. The data came from a statistical bulletin of the Central Bank of Nigeria. A systematic literary approach to data analysis is regression analysis. In Equation 1, it was found that there is a significant relationship between total lending and the commercial bank lending rate in Nigeria. In Equation 2, it was found that there is a significant relationship between the overall credit ratio and the cash reserve in the commercial banks of Nigeria. In the commercial bank performance equation, it was found that there is a significant relationship between the total assets and the capital involved by commercial banks in Nigeria. In the commercial bank performance equation, it was found that there was no significant relationship between the loan and deposit ratio and the liquidity ratio in the commercial banks of Nigeria. It has also been found in Commercial Banking Performance Equation 5 that there is a significant relationship between gross domestic product and total credit in the commercial banks of Nigeria. Thus, the study authors recommend reducing the commercial bank loan rate so that investors see commercial banks as the number one source of funding, the Central Bank of Nigeria should increase the commercial banks’ minimum reserve in order to facilitate adequate lending to commercial customers by clients/investors. Commercial banks need to make effective use of the capital used to increase profitability. Commercial banks should help increase liquidity to increase their ability to cover customer withdrawals and increase loans and advances to customers. Commercial banks should allocate proper credit to the real sector for productive purposes in order to increase gross domestic product. Keywords: Financial Intermediation, Commercial Banks, Gross Domestic Product, Commercial Bank Credit.
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Nedzvedskas, Jonas, and Povilas Aniūnas. "TRANSFORMATIONS IN RISK MANAGEMENT OF CURRENCY EXCHANGE IN LITHUANIAN COMMERCIAL BANKS." Technological and Economic Development of Economy 13, no. 3 (September 30, 2007): 191–97. http://dx.doi.org/10.3846/13928619.2007.9637799.
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After the adoption of International Convergence of Capital Measurement and Capital Standards (widely known as Basel II requirements) in 2004 the risk management in commercial banks has changed dramatically. Lithuanian commercial banks are in transitional period now adapting their risk management systems to Basel II requirements. Market risk is considered one of the key risks in bank risk management structure, so proper management of market risk is essential for a modern bank. Currency exchange risk usually is the main component of market risk. Currency exchange risk management in Lithuanian commercial banks was not good enough; also the Central Bank's regulatory limits were liberal. But after the adoption of Basel II requirements, the entire risk management system is transforming and currency exchange risk management is affected. The objective of this paper is to demonstrate the transformations of currency exchange in Lithuanian commercial banks and propose an effective model for commercial banking. These transformations are performed in the regulatory system imposed by the Central Bank of Lithuania and through transformations of the bank's internal risk management system moving to internal (usually VaR based) models. VaR models are considered as modern methods for risk management. These models proposed by Central bank or other authorities for internal and statutory risk management in commercial banks. In this article, the proposed variation‐covariation VaR model was tested with real data using the back‐testing method. Back‐testing showed that the proposed model is reliable enough, because the number of mismatches was less than 5 % in all tested currency pairs during all testing. In most currency pairs mismatches percentage was lower than 3 %. Back‐testing results confirm that the VaR method is reliable enough for day‐to‐day using by financial institutions and traders.
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Yin, Wei, and Kent Matthews. "Bank lending and bank relationships in China: guanxi or commercial?" Managerial Finance 43, no. 4 (April 10, 2017): 425–39. http://dx.doi.org/10.1108/mf-07-2016-0196.
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Purpose China as a main emerging and transition economy has since 2006 opened up its banking market to foreign competition. Thus far, the penetration of foreign banks has been only moderate with around 2 per cent market share of the total banking market, despite the widely held view that foreign banks operate at a higher level of efficiency and that Chinese state-owned banks (SOBs) operate at a lower level of efficiency. The purpose of this paper is to explore the relationship between bank ownership and the lending behaviour and relationship banking that stems from the Chinese tradition of “guanxi”. Design/methodology/approach Based on three bank types the authors construct a model of the choice of bank type and show how that model can be estimated using a multinomial logit. The authors assume that firms choose a bank type as a function of firm characteristics (Berger et al., 2008; Ongena and Sendeniz-Yüncü, 2011), deal terms (Machauer and Weber, 2000; Ziane, 2003), and industry classification (Uchida et al., 2008; Ongena and Sendeniz-Yüncü, 2011). Findings This paper finds the existence of a close banking relationship of a “guanxi” type between SOBs and state-owned enterprises (SOEs). This is shown up in the form of better deal terms for the SOE. In the case of foreign banks the authors find that a foreign bank-foreign owned enterprise relationship exists but this is based on risk quality and no advantages in deal terms, which suggest a more commercial-based relationship. The empirical findings are that transparent and high-quality firms are likely to engage with foreign banks, while state-owned firms are more likely to engage with SOBs. Originality/value In China, few studies have addressed the potentially important role of bank ownership on lending behaviour (e.g. Firth et al., 2008; Berger et al., 2009). The authors extend the analysis by distinguishing not only between foreign and domestic banks, but also between SOBs and other domestic banks. This research seeks to enhance the understanding of bank ownership, lending behaviour and relationship banking.
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U. Zh. Kurmankozhoeva. "COMMERCIAL BANK ASSET MANAGEMENT IN THE KYRGYZ REPUBLIC." Herald of KSUCTA n a N Isanov, no. 4 (December 16, 2019): 693–97. http://dx.doi.org/10.35803/1694-5298.2019.4.693-697.
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This article discusses the main indicators characterizing the quality of the assets of a commercial bank, analyzes these indicators using the banks of the Kyrgyz Republic as an example. The methods of bank asset management are described. Based on the data of the National Bank, a study is made of the asset structure of commercial banks of the Kyrgyz Republic. A list of regulatory acts governing the management of bank assets is provided.
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Musau, Salome, Stephen Muathe, and Lucy Mwangi. "Financial Inclusion, GDP and Credit Risk of Commercial Banks in Kenya." International Journal of Economics and Finance 10, no. 3 (February 20, 2018): 181. http://dx.doi.org/10.5539/ijef.v10n3p181.
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This paper provides an empirical analysis of the synergies and trade-offs between financial inclusion and credit risk of commercial banks in Kenya. The paper analyzed the effect of financial inclusion on credit risk and the moderation effect of GDP on commercial banks in Kenya. Financial inclusion was measured using three dimensions of bank availability, bank accessibility and bank usage, while credit risk was represented by the non performing loans ratio. The study was anchored on financial intermediation theory supported by finance growth theory and asymmetry information theory. The target population was all the 43 commercial banks in Kenya. The study used secondary data collected from Central Bank of Kenya annual reports; commercial banks of Kenya published audited financial statements and annual data from Central Bureau of statistics of Kenya for the period between 2007-2015. Data was analyzed using descriptive statistics and panel multiple regression analysis. The results obtained found that bank availability, bank accessibility and bank usage had significant effect on credit risk of commercial banks in Kenya. GDP growth rate was found to partially moderate the relationship between financial inclusion and credit risk. From the findings the study concluded that financial inclusion has a significant effect on credit risk of commercial banks in Kenya. The study also recommended that commercial banks in Kenya to negotiate with Central Bank and the Ministry of Finance to put policies which support favorable macroeconomic variables especially GDP which influences the level of financial inclusion and bank credit risk.
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Rachman, Harri Yuni, Lela Nurlaela Wati, and Refren Riadi. "ANALISIS PERBANDINGAN KINERJA KEUANGAN BANK SYARIAH DENGAN BANK KONVENSIONAL." JURNAL AKUNTANSI 8, no. 2 (March 5, 2020): 94–108. http://dx.doi.org/10.37932/ja.v8i2.68.
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This research aims to determine the level of readiness of national banks, especially Sharia Commercial Banks in facing business competition in 2023 in terms of the company's financial performance aspects. The sample in this study was three (3) commercial banks three (3) Syaria Bank for the period 2014 - 2018. The analytical tool used to prove the hypothesis in this study is the independent sample t-test. The information used to measure bank financial performance is based on Bank Financial Publication Reports for the period 2014 - 2018 using CAMEL (Capital, Asset, Management, Earning, and Liquidity) financial valuation indicators summarized in CAR, BOPO, LDR, NIM financial ratios, ROA and NPL. The result of this study showed that there were significant differences, especially the BOPO, ROA and NPL indicators. As for the CAR, LDR and NIM indicators, there was no significant difference. However, when viewed from all aspects of indicators, Islamic Commercial Banks have not been able to show better financial performance compared to Conventional Commercial Banks
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Mansour Khalaf Alkhazaleh, Ayman. "Factors may drive the commercial banks lending: evidence from Jordan." Banks and Bank Systems 12, no. 2 (June 23, 2017): 31–38. http://dx.doi.org/10.21511/bbs.12(2).2017.03.
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In an attempt to shed more light on the behavior of lending in banks, especially in the environment of developing countries, this study aims at explaining the impact of some factors proposed as determinants of bank lending in Jordanian commercial banks by benefiting from the financial reports of thirteen banks during the period 2010-2016. The study, in order to achieve the objectives and to test the main hypotheses has adopted Ordinary least square model (OLS). The most important results of the study are a statistically significant adverse effect of both credit risk and liquidity on bank lending, while there is a significant positive effect of the return on assets, size of the bank measured by assets, inflation, money supply and growth in gross domestic product in determining the level of lending. In addition, the study does not show a significant statistical effect between investments, the volume of deposits and bank lending in the same time frame. The review points out that because of the negative impact of liquidity and credit risk factors, commercial banks need to focus more on reducing their impact because presence of this impact at the end will decrease the ability of these banks to provide loans and stay in the banking market.
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Vasilyeva, Svetlana. "Factors Building Customers Loyalty to Russian Commercial Banks." Moscow University Economics Bulletin 2018, no. 5 (October 30, 2018): 134–48. http://dx.doi.org/10.38050/01300105201857.
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The article considers factors of customer loyalty to Russian commercial banks. The research conducted by the author shows that interest rates on deposits, bank reliability and orientation towards raising funds from individuals are the main factors determining the choice of a bank. The article presents a comparative analysis of the significance of these factors for March 2012 and September 2017. In March 2012, an increase in deposits rates had a positive influence on a bank market share; in September 2017, the influence was negative. Trend reversal is due to the Bank of Russia policy of banking sector cleaning that started in 2013 and implied revocation of bank licenses, bank sanitations, and control over interest rates on deposits set by banks. The higher level of bank reliability and client orientation have a positive effect on the bank’s share in both periods.
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Solonina, S. V., and A. A. Labov. "Risk management in a commercial bank." Scientific bulletin of the Southern Institute of Management, no. 2 (June 25, 2020): 75–82. http://dx.doi.org/10.31775/2305-3100-2020-2-75-82.
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The study presents the problems of risk management of a commercial Bank as the most important element in the overall banking management system. The relevance of the study is due to the current economic and political situation in the country, as well as the instability of market conditions, which significantly complicated the risk management system in commercial banks, which contributed to the deterioration of their financial condition. The processes taking place in the global financial market in recent years have a significant impact on the banking system, significantly increasing Bank risks and reducing the financial stability of credit institutions. Differences are highlighted that reflect the priority aspects in assessing the risk management of a commercial Bank from the authors ‘ point of view. Risk management strategies in credit institutions are considered. A comparative analysis of the methodologies used to assess the risks and capital adequacy of commercial banks in Russia and abroad has been carried out, and features of their use have been identified.
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Nguyen, Nam V., Ngoc T. Nguyen, and Mai T. T. Ngo. "Bank Ownership vs Credit Growth: Empirical Evidence from Vietnamese Commercial Banks." International Journal of Research and Review 8, no. 11 (November 11, 2021): 32–43. http://dx.doi.org/10.52403/ijrr.20211106.
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This paper is aimed at analyzing the relationship between bank ownership and credit growth of Vietnamese commercial banks. With the data of 20 commercial banks in period 2009-2018 period, the REM method is applied. The key findings are: First, credit growth rate of state-owned commercial banks in Vietnam is higher than of private commercial banks, which is opposite to the expected signal. The main reasons are (i) decision making of state-owned commercial banks on lending are backed by the government, which is more straight-forward than private banks; (ii) State Bank of Vietnam considers credit policy as one of the important monetary policy tools, of which state-owned commercial banks are the key drivers; (iii) state-owned commercial banks have stable and cheap funding sources, which create the good base for expanding credit with cheap interest rates. Second, asset size does not have any impact on credit growth. Credit growth rates are determined by the bank’s overall performance and maximum growth rate set by State Bank of Vietnam, not on assets. Third, the other bank-specific factors are statistically significant with credit growth, of which liquidity and ROA have the strongest influences. Recommendations for better credit growth management of commercial banks include: (i) State Bank of Vietnam and the Government to ensure soundness of the banking system, including applying the Basel II requirements to all banks; and establish more support packages in order to boost the lending activities of privately-owned banks. (ii) Commercial banks to reduce its non-performing loans in order to stimulate the growth in lending. Keywords: bank liquidity, bank ownership, credit growth, non-performing loans, ROA.
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Öhman, Peter, and Darush Yazdanfar. "Organizational-level profitability determinants in commercial banks: Swedish evidence." Journal of Economic Studies 45, no. 6 (November 12, 2018): 1175–91. http://dx.doi.org/10.1108/jes-07-2017-0182.
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PurposeThe purpose of this paper is to examine organizational-level determinants of commercial bank profitability.Design/methodology/approachUsing bank-level longitudinal panel data for the 2005–2014 period, this study conducts univariate and multivariate statistical analyses, i.e. ordinary least squares (OLS), fixed-effects and feasible generalized least-squares (FGLS) regressions, to analyze profitability variables in Swedish commercial banks.FindingsThe findings indicate that the organizational-level determinants growth, lagged profitability and capital adequacy are positively related to banks’ current profitability. No relationship was found between banks’ size and their profitability. Moreover, no relationship was found between the macroeconomic control variable gross domestic product (GDP) and bank profitability.Practical implicationsGiven that organizational-level determinants explain sustainable bank profitability, the findings can be used by bank managers as a basis for low-risk bank policy formulation, and by regulators in monitoring banks relative to international standards (i.e. the Basel Accords).Originality/valueTo the best of the authors’ knowledge, this is the first study to investigate determinants of bank profitability in Sweden, a country with a strong tradition of bank-based financing, with previous experience of a domestic bank crisis in the 1990s, and where the recent global financial crisis had relatively little impact on domestic banks.
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Gautam, Madhusudan. "Determinants of Bank Value: Evidence from Nepalese Commercial Banks." International Research Journal of Management Science 6, no. 1 (December 31, 2021): 29–38. http://dx.doi.org/10.3126/irjms.v6i1.42336.
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Commercial banks have a pivotal role in an economy as they provide easy access for firms to fulfill financing needs and help stimulate economic development. This study aims to analyze the impact of key bank-specific determinants on bank value in Nepalese commercial banks, covering 133 observations from 19 commercial banks over the period 2012/13 to 2018/19. Bank value is measured through M/B and Tobin’s Q. Size, profitability, credit risk, loan, deposit and capital are used as explanatory variables. Panel data regression models have been used for analysis purpose. The results of this paper show that profitability, deposit and loans are major determinants of bank value. Moreover, return on assets and bank deposit have positive effect on bank value whereas loan has negative explaining power on bank value. Thus, this paper concludes that Nepalese commercial banks have to pay special attention for the efficient and effective utilization of assets to increase profits and try to increase the size of deposits to increase loan portfolio. Steps and enforcement actions need to be taken by policy level authorities for effective loan management to minimize credit risk and increase bank value.
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Lamichhane, Pitambar. "Depositors’ perception on performance in Nepalese commercial banks." Management Dynamics 23, no. 1 (March 9, 2020): 21–36. http://dx.doi.org/10.3126/md.v23i1.35541.
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This paper analyzes bank depositors’ perception in relation to factors explaining performance of banks in Nepal. This study has applied descriptive and explorative research design to analyze factors affecting bank performance. A survey was made to collect data from bank depositors using structural questionnaire in Kathmandu valley in 2019. Survey result reveals that Nepalese depositors prefer to deposit money in commercial banks because of easy access but are not satisfied with e-banking services. Most of depositors have no ownership in banks and feel interest rate on deposits is less than expectations. Similarly, result shows that depositors prefer to deposit in saving account analyzing risk and feel government rules and regulations affect interest rates of banks. Further, result indicates banks’ image and interest rate on deposits are key factors for bank deposits and performance, poor operating performance and lack of appropriate investment opportunities are reasons of low interest rate on bank savings. Finally, result concludes that use of modern technologies, size of deposits, market information, managerial efficiency, size of lending and deposits of banks are significant factors and size of debt capital and assets are weak factors affecting performance in Nepalese commercial banks.
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Purwanto, Purwanto. "ANALISIS PERBANDINGAN ANTARA TINGKAT KESEHATAN BANK PEMBANGUNAN DAERAH DENGAN BANK UMUM LAINNYA." Jurnal AKTUAL 17, no. 1 (June 2, 2019): 1. http://dx.doi.org/10.47232/aktual.v17i1.28.
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Community development banks has different characteristics with groups of other commercial banks. In addition to running the activities of commercial banks, Community development banks also serves as a driver of regional agent of development. Community development banks prosecuted still play a role in facilitating regional development funds, both investment projects and working capital. Community development banks also serves as a cashier local governments, such as the realization of budget funds. The aim of this study was to determine the performance comparison between Community development banks and other national private commercial bank. Research using banking statistics sourced from Bank Indonesia (2013). The analysis was performed with descriptive approach. The study found that Community development banks has profitability, efficiency and liquidity is better than other commercial banks. Judging from the aspect of capital and productive quality, Community development banks has a CAR and lower asset quality of commercial banks Others, while viewed from the aspect of liquidity (LDR) were not statistically different.
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Gan, Christopher. "Editorial for the Special Issue on Commercial Banking." Journal of Risk and Financial Management 13, no. 6 (June 1, 2020): 111. http://dx.doi.org/10.3390/jrfm13060111.
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The existence of financial intermediaries is arguably an artifact of information asymmetry. Beyond simple financial transactions, financial intermediation provides a mechanism for information transmission, which can reduce the degree of information asymmetry and consequently increase market efficiency. During the process of information transmission, the bank is able to provide unique services in the production and exchange of information. Therefore, banks have comparative advantages in information production, transmission, and utilisation. In credit provision, it is possible for lenders to make Type I and Type II errors. These types of errors are associated with whether banks decide to lend money to borrowers with low repayment capacity or risk missing out on potentially profitable lending. However, the recent US subprime loan crisis and previous financial crises (such as the Mexican, Argentinian, Chilean and Asian financial crises) show it is possible that banks can make both good and bad lending decisions. Does this mean that banks have lost their comparative advantages in leveraging information asymmetry? This Special Issue includes contribution in empirical methods in banking such risk and bank performance, capital regulation, bank competition and foreign bank entry, bank regulation on bank performance, and capital adequacy and deposit insurance.
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Nataiia, SHULHA, KOTENKO Uliana, and STEPANYK Alyona. "BANK LENDING OF COMMERCIAL REAL ESTATE." Herald of Kyiv National University of Trade and Economics 139, no. 5 (October 25, 2021): 112–26. http://dx.doi.org/10.31617/visnik.knute.2021(139)08.
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Background. Banks’ proposals of loans for commercial real estate services have some differences in standard and non-standard terms of their provision. Instead, most clients focus only on standard loan terms and only some of them on non-standard ones. A comprehensive approach to the simultaneous consideration of standard and non-standard conditions for obtaining a loan for commercial real estate has not been developed in modern theory and practice of banking, which should be the basic basis for the borrower’s decision in choosing of the lending bank. The aim of the article is to identify current trends in the development of bank lending for commercial real estate in Ukraine, as well as the economic justification of the borrower’s choice of bank in the process of making a decision to obtain a loan. Materials and methods. Method of generalization and historical method were applied in the study of trends in lending for the acquisition, construction, repair, reconstruction of commercial real estate; methods of analysis and synthesis were used in the diagnosis of standard and non-standard conditions of credit servicing of commercial real estate. The authors provide an analysis ofthe choice of the bank to obtain a loan based on an integrated assessment of its attractiveness to the client using system approach. Results. A methodical approach to the integrated assessment of the economic attracttiveness of a bank loan for commercial real estate services has been developed. It is based on the Pareto principle, according to which standard lending conditions are taken into account in 80% and 20% is non-standard. This methodological approach allows the borrower to make an informed management decision on the correct choice of the lending bank. Conclusion. Loans for commercial real estate services, except the warehouse real estate sector, have decreased due to the COVID-19 pandemic. Demand for construction loans and repair of warehouses remained relatively stable. The practical approbation of the offered methodical approach of a complex estimation of credit offers of the most active Ukrainian banks on an example of the enterprise which planned to receive the credit for repair of the warehouse real estate is carried out. The choice of the creditor bank is substantiated according to the calculations results. Keywords: pandemic, banks, commercial real estate, lending, grant element, Pareto principle, standard and non-standard lending conditions, integrated assessment.
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Nzowa, Seule. "Customer Switching Intentions in Commercial Banks: A case of selected commercial banks in Dar es Salaam." CBR - Consumer Behavior Review 5, no. 3 (September 11, 2021): 307. http://dx.doi.org/10.51359/2526-7884.2021.250399.
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The negative consequences of customer switching behaviour in the banking industry cannot be underestimated. Since there are limited studies addressing customer switching intentions and actual switching behaviour in the banking sector of Tanzania, this study intended to bridge the knowledge gap by addressing factors influencing customer switching intentions in the context of Tanzanian commercial banks. The study followed a positivism research paradigm out of which a deductive research approach was adopted. In the same line, an explanatory research design was used. The study was conducted in the city of Dar es Salaam with 400 respondents who were customers from NMB Bank Plc, TPB Bank Plc and NBC Bank Ltd. Multi-stage sampling method was used to generate sample size for this study. Multiple linear regression was employed to analyze the collected data. The findings of Thé study indicated that subjective norms were insignificant in influencing customer switching intentions in commercial banks. These findings suggested that commercial banks customers in the city of Dar es Salaam are not under robust social pressure that requires a vital social group to approve their switching intentions. Further findings revealed that perceived control of bank charges, attitude toward service quality and convenience significantly influenced customer switching intentions in commercial banks.
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NGUYỄN PHÚC, CẢNH, ANH NGUYỄN QUỐC, and QUÂN NGUYỄN HỒNG. "Effects of Bank Characteristics on Transmission of Monetary Policy Through Bank Lending Channel in Vietnam." Journal of Asian Business and Economic Studies 219 (January 1, 2014): 49–65. http://dx.doi.org/10.24311/jabes/2014.219.1.02.
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Credits from commercial banks influence various economic components, such as investment and consumption of durables and changes in monetary policy and therefore, affect the economy through supply of credits by commercial banks. This paper explores transmission of monetary policy through commercial bank lending channel in Vietnam in 2003-2012 by examining reaction of each bank to changes in monetary policy. Authors use the GMM (generalized method of moments) for panel data gathered from financial statements of commercial banks in 2003-2012. Results show that GMM helps detect the existence of bank lending channel in the transmission mechanism in Vietnam, and bank characteristics relating to equity capital, liquidity assets and risk degrees affect their flexibility when responding to changes in monetary policy in the surveyed period.
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Abdyldaeva, U. M. "ANALYSIS OF THE FINANCIAL STATUS OF COMMERCIAL BANKS." Herald of KSUCTA, №2, Part 1, 2022, no. 2-1-2022 (April 30, 2022): 528–33. http://dx.doi.org/10.35803/1694-5298.2022.2.528-533.
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This article reveals the need to study the financial position of the bank, the results of which can be used to justify the decisions of regulatory authorities. The financial position of commercial banks in Kyrgyzstan is being investigated, as the results of the financial position survey warn consumers against using unreliable banking services. The Bank strives to give an objective assessment of the current and future situation. Recent events in the world, especially the situation with the pandemic, require an analysis of the financial situation of commercial banks. In modern, more competitive conditions, bank employees and customers need reliable information about the financial condition of the bank, financial stability trends, liquidity and factors affecting its change. The effectiveness of commercial banks also depends on the ability to conduct business based on the analysis of information and comparison with other banks.
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BARYLIUK, Mariia-Mariana. "FUNCTIONING OF THE SYSTEM OF PRIVIDING FINANACIAL SECURITY OF COMMERCIAL BANKS." WORLD OF FINANCE, no. 2(51) (2017): 158–69. http://dx.doi.org/10.35774/sf2017.02.158.
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Introduction. Annexation of Crimea and the escalation of the conflict in the East, unfair competition, offshore of banking, inefficient activities of the state, which primary task is to create favorable conditions for business, including banking and gaps in legislation create commercial banks conditions under which they have to pay special attention to ensure their own financial security in order to ensure profitable operation in the current market conditions in which banking business is functioning. Purpose. To ensure effectively system of the financial security of commercial banks should be used systematic and comprehensive approaches. Systematic approach to ensure the financial security of commercial bank is used to develop an appropriate provision system of financial security of the bank and a comprehensive approach – to involve the development of a package of organizational and economic measures to ensure stable functioning of the bank to the achieve the appropriate level of its financial security under the condition of elimination of external and internal threats. Results. Thus, we determined that the system of providing financial security of commercial bank is serving environment for the organizational and economic mechanism of ensuring financial security of a commercial bank. In turn, the structural elements of the organizationaleconomic mechanism of ensuring financial security of a commercial bank are components of financial security management software and components of implementation management of financial security of commercial banks. Thus, the components of financial security management software of a commercial bank are regulatory, informational, methodological, analytical and technical and technological support. The components of implemention management financial security of commercial banks, in our view, is toolkit of ensuring the financial security of the commercial bank, functional and process-organizational mechanisms of insuring financial security of commercial banks. The efficiency of ensuring financial security of commercial bank based on principles. In our view, a list of principles of ensuring financial security should be supplemented by the following principles: legality, measurability, controllability, trust partnerships, alternative and economy. In turn, the guidelines of ensuring financial security of the bank, in our opinion, is a socio-economic, financial, innovative, competitive, detection and neutralization of risks and threats to financial security, compliance functioning of the bank with regulatory requirements of the National bank of Ukraine. An important element of ensuring the financial security of the bank is a method of determining the level of financial security and effectiveness of bank support, based on the financial performance of the bank and developed integral index of financial security of commercial bank. Thus the diagnosis banks financial security, based on the calculation of the integral indicator to assess the effectiveness of organizational and economic measures designed to ensure the financial security of the bank and determine the strategic positioning of the bank in the environment. Conclusion. Thus, on the basis of the analysis system of ensuring the financial security of the bank is defined as a set of structural elements (goals, principles and guidelines to ensure the financial security of the bank and the relevant organizational and economic mechanism) which in interaction with the outside and within the internal environment of functioning of the bank, provide implementation of a comprehensive strategy to achieve a certain level of its financial security.
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Mireku, Kwame, Emmanuel Akomeah Sakyi, and Joseph Akadeagre Agana. "Does Commercial Banks Presence Enhance Profitability in Ghana?" Global Business Review 19, no. 6 (September 26, 2018): 1449–61. http://dx.doi.org/10.1177/0972150918794969.
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The last few decades have witnessed an increasing drive for bank presence across Ghana due to commercial banks appetite for increased deposit mobilization. Although bank presence is crucial in savings mobilization for economic growth and development, its relationship with the financial performance of the banks is unknown within the context of a developing economy. The current study therefore investigates the implications of banks presence on the financial performance of the commercial banks in Ghana, using data from 2007 to 2013. Panel regression is used for the estimation. Our findings show that increasing banks presence does not necessarily translate into profitability of the commercial banks. A plausible deduction from the results indicate that growth in bank presence (bank branches) cannot improve alternate distribution channels of banks operations due to the strong competition in the financial sector, cost of operations and low savings culture in Ghana. The results also reveal that market concentration, cost management, capital adequacy and activity mix contribute positively to the financial performance of commercial banks in Ghana but not credit risk and management quality. We also document that the macroeconomic environment has positive effects on the financial performance of commercial banks. Following the above, we recommend that commercial banks should pay critical attention to bank specific factors such as cost management and capital adequacy ratios. Moreover, managers of the economy should strive to create a conducive and stable environment to increase their penetration in Ghana.
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Oyelade, Aduralere O. "Impact of commercial bank credit on agricultural output in Nigeria." Review of innovation and competitiveness 5, no. 1 (2019): 5–20. http://dx.doi.org/10.32728/ric.2019.51/1.
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Purpose. The purpose of this study was to investigated the impact of commercial bank credits on agricultural output in Nigeria over the period 1980 to 2015 by setting three specific objectives which are to examine the trend of commercial bank credit and agricultural output in Nigeria; to investigate the effect of commercial bank credit on agricultural output in Nigeria and to investigate the effect of commercial bank credit on subsector of agriculture in Nigeria. The trend analysis and the impact of commercial bank credit on subsector of agriculture in Nigeria make this work unique and different from other studies in this area. Trend analysis was used to achieve the first objective and fully modified ordinary least square (OLS) for objective two and three. Methodology. The study employed Fully Modified Ordinary Least Squares (FMOLS) approach. Findings. It was evidenced that interest rate on commercial banks’ credit to agriculture and deposit money bank’s assets are statistically significant in determine agricultural output in Nigeria within the period considered. Also, commercial bank loan on agriculture and deposit money bank’s assets determine the output of crop production in Nigeria; commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of livestock production in Nigeria and commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of forestry in Nigeria while commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of fishing in Nigeria. Limitations. This study is limited because the study does not include other variables that determine the output of agricultural sector in Nigeria. Also, other theories and methods can still be used by other researcher to make it different from this work. Originality. This is an original work and has neither been published in any other peer-reviewed journal nor is under consideration for publication by any other journal.
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Sheikh, Nadeem Ahmed, and Muhammad Azeem Qureshi. "Determinants of capital structure of Islamic and conventional commercial banks." International Journal of Islamic and Middle Eastern Finance and Management 10, no. 1 (April 18, 2017): 24–41. http://dx.doi.org/10.1108/imefm-10-2015-0119.
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Purpose The purpose of this paper is to investigate how conventional and Islamic commercial banks in Pakistan choose their capital structure and what are the most significant factors that affect their choice of capital structure. Design/methodology/approach The authors collected the data from the annual reports of commercial banks listed on Karachi Stock Exchange Pakistan during 2004-2014. Panel data techniques, namely, pooled ordinary least squares, fixed effects and random effects, were used to estimate the relationship between book leverage and bank-specific variables such as profitability, size, growth, tangibility and earnings volatility. Findings Descriptive statistics indicate that conventional commercial banks are more levered than Islamic commercial banks. Moreover, conventional commercial banks are larger, profitable and have relatively safe earnings than Islamic commercial banks. In contrast, Islamic commercial banks have relatively more fixed operating assets and growth in total assets compared to the conventional commercial banks. Regression results indicate that profitability, growth and tangibility are negatively, whereas bank size and earnings volatility are positively, related to book leverage of conventional commercial banks. On the other hand, only three variables, namely, profitability, bank size and tangibility, have material effects on capital structure choice of Islamic commercial banks. Profitability and tangibility are negatively while bank size is positively related to book leverage of the Islamic banks. In sum, results of the study indicate that Islamic and conventional commercial banks have their own way to choose the capital structure than the non-financial firms; however, their choice is affected by the similar variables as identified for non-financial firms in Pakistan. Practical implications Results of this study provide support to bank managers to understand the effects of bank-specific variables on capital structure and make them able to determine a balanced capital structure considering the regulations framed by the central bank of the country. Originality/value This is the first study that investigates the factors that affect the capital structure of conventional and Islamic commercial banks in Pakistan. Moreover, findings of this study lay some foundation upon which a more detail analysis of capital structure of banks could be based.
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Timilsina, Lalit Prasad. "Determinants of capital structure in Nepalese commercial banks." International Research Journal of MMC 1, no. 1 (March 31, 2020): 50–70. http://dx.doi.org/10.3126/irjmmc.v1i1.34119.
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This study examines the determinants of capital structure in Nepalese Commercial Banks. The study is based on secondary data of 16 commercial banks with 112 observations for the period 2011/12 to 2017/18. The total debt to total assets and total debt to total equity were selected as dependent variables while return on assets, bank size, assets tangibility, assets growth and liquidity are the independent variables. The data were collected from annual reports of concerned sample bank. The Pearson's correlation coefficients and regression models are estimated to test the significance and impact of bank specific factors on the capital structure of Nepalese commercial banks. The result shows that banks size and assets tangibility are positively correlated with total debt to total assets whereas return on assets, assets growth and liquidity are negatively correlated with total debt to total assets. Likewise return on assets, bank size, assets tangibility, assets growth and liquidity are negatively correlated with total debt to total equity. It indicates that higher assets growth, return on assets and liquidity lower would be the total debt to total assets and total debt to total equity. Likewise higher the bank size and assets tangibility higher would be the total debt to total assets. This study concludes that return on assets, bank size and assets tangibility are the most influencing factors and assets growth and liquidity are the least influencing factor affecting the capital structure of Nepalese commercial banks.
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Gautam, Madhusudan. "Competitive Conditions in Nepalese Commercial Banks." Journal of Nepalese Business Studies 14, no. 1 (December 20, 2021): 82–95. http://dx.doi.org/10.3126/jnbs.v14i1.41494.
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This study aims to analyze the competitive conditions of commercial banks in Nepal. Competition is measured through structural and non-structural measures of bank competition. Data were taken from 21 commercial banks of Nepal using pooled sampling method, including five commercial banks based on the highest total assets and sixteen commercial banks using random sampling. Concentration ratio, Herfindahl-Hirschman Index, H-statistic and Lerner Index measures were used to assess the competitive position of Nepalese commercial banks. Panel data regression model with bank fixed effect and time fixed effect was employed to measure H-statistic and Lerner index. Findings showed the increasing pattern of capitalization and the decreasing trend of non-performing loan ratio, indicating that Nepalese commercial banks have a low possibility of loan default and, are more financially stable. It also showed the declining trend of bank concentration and HHI, suggesting that Nepalese commercial banks are losing their monopoly power and becoming more competitive in recent years. Competition in the loan market was found higher than deposit market competition. Banks have to pay special attention to loan portfolio management rather than deposit collection strategies. This study concludes that the competitive condition of Nepalese commercial banks is monopolistic. Therefore, appropriate strategies might be taken into action to sell financial products and services competitively.
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McKinney, George W. "Commercial bank financial management." Journal of Banking & Finance 11, no. 1 (March 1987): 175–78. http://dx.doi.org/10.1016/0378-4266(87)90031-8.
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Tien Minh, Pham, and Bui Huy Hai Bich. "Ownership structure and risk of commercial banks in Vietnam." Science & Technology Development Journal - Economics - Law and Management 3, SI (April 11, 2020): SI1—SI13. http://dx.doi.org/10.32508/stdjelm.v3isi.606.
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This study examines the impact of ownership structure on bank risk. The former is classified into four types, including concentrated, institutional, foreign, and government, while the latter is proxied by the Z-score (an inverse measure of risk). The Generalized Least Squares (GLS), which controls for heteroskedasticity and autocorrelation problems, is employed to analyze an unbalanced panel data set including 21 joint-stock commercial banks in Vietnam from 2010 to 2018. We further investigate the moderating effects of market discipline (proxied by variable listed) on the relationship between ownership structure and bank risk. The results suggest that there is a negative association between three proxies of ownership structure (ownership concentration, institutional ownership, and government ownership) and bank risk and that foreign ownership does not have any significant relationship on the risk of the bank in the direct relationship models. However, the results for the models where interaction variables are included show that foreign shareholders help improve bank stability and reduce risk in listed banks. In addition, the relationship between institutional ownership and bank risk is reinforced for listed banks, while the relationships between the other two (concentration and government) and bank risk are not influenced by the listing status.
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Pokharel, Shiva Prasad. "Impact of liquidity on profitability in Nepalese Commercial Bank." Patan Pragya 5, no. 1 (September 30, 2019): 180–87. http://dx.doi.org/10.3126/pragya.v5i1.30458.
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This study explores the influence of liquidity on the profitability in the Nepalese commercial banks. 5 commercial banks in Nepal; Agriculture Development Bank, Everest Bank, Prime Commercial Bank, Sunrise Bank and Citizens Bank International are randomly selected among 28 commercial banks of Nepal as a sample and analyzed for the current study over the period 2010/11 to 2016/17 AD. Since liquidity management can increase the bank’s profitability. the study has examined their liquidity management as well as profitability positions using various statistical and financial tools. The article indicates largely zigzag trend of average profitability of commercial banks, although the trend of liquidity ratios of the bank is unstable. The research concluded that bank’s liquidity ratios have below the prescribed standard. Similarly CRR is extremely heavy than prescribed by monetary policy 2016/17. The CRR and IGSCA are positively correlated with ROA while CRR and CBBISD are inversely correlated with ROA. In case of liquidity-ROE Relation, CR is inversely correlated to ROE but all other ratios (CRR, CBBISD and IGSCA) are positively correlated with ROE. It also has reported there is significant relationship between liquidity ratios with profitability, except between IGSCA and ROA.
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Uchenna Okoye, Lawrence, Alexander Ehimare Omankhanlen, Johnson I. Okoh, Felix N. Ezeji, and Esther Ibileke. "Impact of corporate restructuring on the financial performance of commercial banks in Nigeria." Banks and Bank Systems 15, no. 1 (March 2, 2020): 42–50. http://dx.doi.org/10.21511/bbs.15(1).2020.05.
Full textAbstract:
The implementation of the 2004–2005 bank capital reform in Nigeria, introduced to deepen the financial capacity of the banking system, has led to a major restructuring of the banking sector. The reform required banks to increase their equity capital by about 1150 per cent (from two billion to twenty-five billion naira) within 18 months. Due to compliance challenges, the reform formed just twenty-five out of eighty-nine banks that previously existed. More than seventy-five per cent of the banks emerged through mergers and acquisitions. However, despite the massive increase in assets and deposit growth, episodes of bank distress have remained a recurring irritant in the country’s financial system. This study compares bank performance in the pre- and post-reform periods to determine the usefulness or efficacy of the capital reform in boosting bank performance based on panel analysis of data from five banks. The study covered the period 1996–2016. The generalized method of moments was used to evaluate the parameters of the model. The result of the random effects model shows a weak positive effect of total assets and deposit growth on bank performance in the pre-reform period. However, the post-reform assessment reveals that while profitability is significantly low in large-sized banks, it is higher in smaller banks. Given the above evidence, the study asserts that profit performance of banks is substantially linked to restructuring of the sector.
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Malla, Buddhi Kumar. "Credit Portfolio Management in Nepalese Commercial Banks." Journal of Nepalese Business Studies 10, no. 1 (February 5, 2018): 101–9. http://dx.doi.org/10.3126/jnbs.v10i1.19138.
Full textAbstract:
Credit portfolio management is a key function for banks (and other financial institutions, including insurers and institutional investors) with large, multifaceted portfolios of credit, often including illiquid loans (Nario, Pfister, Poppensieker & Stegemann, 2016). After global financial crisis of 2007-2008, the credit portfolio management function has become most crucial functions of the bank and financial institutions. The Basel III, third installment of Basel accord was developed after crisis to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage that encourages banks to measure credit risk of bank's portfolios. The Basel committee also raises an issue concerning the application of the risk weights used in the capital adequacy framework to determine exposure to risk assets for the purpose of determining large credit exposure (Morris, 2001).The portfolio management of the Nepalese banking sector has been improved remarkably during last 10 years due to the strict regulation of Nepal Rastra Bank. This journal will try to describe the present credit portfolio management practice of Nepalese commercial banks by using qualitative and quantitative methods. In this study, concentration of banks for credit portfolio management has been studied by analyzing security wise loan, product wise loan and sector wise concentration of loan where the researcher has found assorted outcomes. This research also aims to provide some suggestions to overcome with problems associated with credit portfolio.The Journal of Nepalese Business Studies Vol. X No. 1 December 2017, Page: 101-109
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Manda, Gusganda Suria, and Rina Maria Hendriyani. "ANALISIS TINGKAT KESEHATAN BANK MENGGUNAKAN METODE PROFIL RISIKO, TATA KELOLA PERUSAHAAN YANG BAIK, PENDAPATAN & MODAL (Studi Komparasi Antara Bank Umum Konvensional dan Bank Umum Syariah Di Indonesia Lemabaga yang Terdaftar Pada Otoritas Layanan Keuangan." Eqien: Jurnal Ekonomi dan Bisnis 7, no. 1 (February 29, 2020): 68–77. http://dx.doi.org/10.34308/eqien.v7i1.123.
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This analysis aims to find out, analyze and explain how the bank's soundness level compares with the Risk Profile, Good Corporate Governance, Earning and Capital methods in accordance with applicable regulations.
This research was conducted using a comparative descriptive method with a quantitative approach.
The results of the analysis of this study the authors get that Conventional Commercial Banks have a Risk Profile (NPL ratio) with a rating of "Good" better than a Sharia Commercial Bank with a rating of "Fairly Good". Conventional Commercial Banks have a Risk Profile (LDR) higher than Islamic Commercial Banks with a rating of "Fairly Good". Conventional Commercial Banks have Good Corporate Governance (GCG) better than Sharia Commercial Banks with a "Good" rating. Conventional Commercial Banks have better Earning (ROA) with a "Very Good" rating than a Sharia Commercial Bank with a "Very Poor" rating. Sharia Commercial Banks have a Capital (CAR) higher than Conventional Commercial Banks with a rating of "Very Good
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Welly, Welly, and Kurnia Krisna Hari. "PENGARUH PENILAIAN KESEHATAN BANK TERHADAP KINERJA KEUANGAN BANK SYARIAH DI INDONESIA." BALANCE Jurnal Akuntansi dan Bisnis 3, no. 2 (November 1, 2018): 409. http://dx.doi.org/10.32502/jab.v3i2.1258.
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This study aims to provide empirical evidence about the effect of bank soundness by using Risk Profile, Good Corporate Governance, Earnings, Capital (RGEC) methods on the financial performance of sharia commercial banks in Indonesia. The formulation of the problem in this research is whether there is an effect of the soundness of the Islamic Commercial Bank with the RGEC method with the banking performance in Indonesia in the 2011-2015 period? How much influence does the bank's health level have on the RGEC method on the performance of Islamic Banks in Indonesia? The research sample consisted of 7 Islamic banks in Indonesia. The data used are quarterly financial statements of sharia commercial banks and GCG implementation reports. The statistical method used to test the research hypothesis is multiple linear regression. The results of data testing stated that there was no heterocedasticity, autocorrelation, multicollinearity, and data with normal distribution. The results showed that Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Net Operating Margin (NOM) and Capital Adequacy Ratio (CAR) had an influence on the financial performance of Islamic commercial banks, while Good Corporate Governance (GCG) did not have influence on the financial performance of Islamic commercial banks. The effect of bank soundness on the financial performance of Islamic banks was 39.40%, while 60.60% was influenced by other factors outside this study.
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NGUYỄN THỊ, LOAN, and HẠNH TRẦN THỊ NGỌC. "The Business Performance of Vietnam’s Commercial Banks." Journal of Asian Business and Economic Studies 217 (July 1, 2013): 42–62. http://dx.doi.org/10.24311/jabes/2013.217.08.
Full textAbstract:
Analyzing the business performance or efficiency of commercial banks plays an important role in enabling bank executives to make organizational decision and policies that may facilitate the profitability and enhance the bank?s performance. In this paper, the authors employ multiple methods to evaluate the business performance of Vietnam?s commercial banks and extend some suggestions for applying analyzing methods and improving their performance.