Did the Decline in the Excess Capital Adequacy Ratio Amplify the Monetary Policy Easing and Credit Cycles on Activity in the Manufacturing Sector?

2020 ◽  
pp. 203-218
Author(s):  
Nombulelo Gumata ◽  
Eliphas Ndou
Keyword(s):  
Monetary Policy ◽  
Manufacturing Sector ◽  
Capital Adequacy ◽  
Credit Cycles ◽  
Capital Adequacy Ratio

scholarly journals Empirical Analysis of Non-Performing Loans and Liquidity of Deposit Money Banks: Nigeria Experience

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Gross Domestic Product ◽  
Capital Adequacy ◽  
Domestic Product ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
Minimum Capital Requirement ◽  
Small Quantum ◽  
Capital Adequacy Ratio ◽  
Loan Growth

Nigerian Deposit Money Banks (DMBs) tend to have suffered the plight of Non-Performing Loans (NPLs) in recent times in no small quantum. Consequently, a large chunk of them have had to increase their loan loss provisions and this may dwindle their liquidity. This study investigates the effect of non-performing loans on liquidity of Deposit Money Banks (DMBs) in Nigeria. A panel regression analysis was performed on a data of 15 quoted DMBs from 2009 to 2019, in order to examine the correlation between the explained variable (banks’ liquidity) and Non-Performing Loans (NPL) while other explanatory variables- Capital Adequacy Ratio (CAR), Bank Size (BS), Loan Growth (LG), Monetary Policy Rate (MPR), Gross Domestic Product (GDP) and Inflation were taken into consideration. Data were extracted from the banks’ yearly financial statements and the World Bank Financial Statistics. Based on the empirical findings, the study found only four variables-Non Performing Loans, Capital Adequacy Ratio, Bank Size and Inflation significantly related at 5% significant level with banks’ liquidity while the other three; Gross Domestic Product, Loan Growth and Monetary Policy Rate were identified as insignificant. The finding also revealed that NPLs has negative effect on banks’ liquidity while CAR, BS and INF showed positive relationship. The study recommends strict compliance of banks with the NPLs tolerable limit set by the Central bank. It also suggests that the CBN take proactive measure to ensure the banks’ compliance with the minimum capital requirement. Keywords: Banks, Financial Institutions, Liquidity, Non-Performing Loans, Performance

scholarly journals Does Monetary Policy Influence the Profitability of Banks in New Zealand?

2020 ◽  
Vol 8 (2) ◽  
pp. 35 ◽  
Author(s):  
Vijay Kumar ◽  
Sanjeev Acharya ◽  
Ly T. H. Ho
Keyword(s):  
Monetary Policy ◽  
New Zealand ◽  
Interest Rates ◽  
Negative Impact ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Capital Adequacy ◽  
Bank Profitability ◽  
Capital Adequacy Ratio ◽  
Income Ratio

The study investigates the relationship between monetary policy and bank profitability in New Zealand using the generalized method of moments (GMM) estimator. Our sample comprises 19 banks from New Zealand over the period 2006–2018. Our results suggest that an increase in short-term rate leads to an increase in the profitability of banks, while an increase in long-term interest rates reduces bank profitability. In addition to monetary policy variables, capital adequacy ratio, non-performing loan ratio, and cost to income ratio are also important determinants of the profitability of banks in New Zealand. Capital adequacy ratio has a positive impact on bank profitability, while non-performing loan ratio and cost to income ratio have a negative impact on bank profitability.

PENGARUH FAKTOR-FAKTOR INTERNAL PERBANKAN TERHADAP NON PERFORMING FINANCING PADA BANK UMUM SYARIAH

2019 ◽  
Vol 6 (2) ◽  
pp. 115-130
Author(s):  
Eka Ambara Harci Putranta ◽  
Lilik Ambarwati
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Annual Reports ◽  
Regression Methods ◽  
Capital Adequacy Ratio ◽  
Negative Effect ◽  
Independent Variable

The study aims to analyze the influence of internal banking factors in the form of: Capital Adequency Ratio (CAR), Financing to Deposit Ratio (FDR) and Total Assets (TA) to Non Performing Financing at Sharia Banks. This research method used multiple linear regression analysis with the help of SPSS 16.00 software which is used to see the influence between the independent variables in the form of Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR) and Total Assets (TA) to Non Performing Financing. The sample of this study was 3 Islamic Commercial Banks, so there were 36 annual reports obtained through purposive sampling, then analyzed using multiple linear regression methods. The results showed that based on the F Test, the independent variable had an effect on the NPF, indicated by the F value of 17,016 and significance of 0,000, overall the independent variable was able to explain the effect of 69.60%. While based on the partial t test, showed that CAR has a significant negative effect, Total assets have a significant positive effect with a significance value below 0.05 (5%). Meanwhile FDR does not affect NPF.

Kinerja Rasio Keuangan Perbankan Islam Dan Konvensional: Studi Komparatif

Liquidity ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 13-20
Author(s):  
Amrizal Amrizal
Keyword(s):  
Annual Report ◽  
Capital Adequacy ◽  
Average Increase ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

The article focuses to analyze finance ratio consist of Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM) Capital Adequacy Ratio (CAR) except Earnings before Interest Tax (EBIT). The research is conducted to three conventional banking (BNI 46, Mandiri and BRI) and three syariah banking (Bank Muamalat Indonesia, Bank Mega Syaria and Bank Syariah Mandiri) for annual report periods 2007 to 2011. The result shows, the average increase EBIT to conventional banking groups during period 2007 to 2011 are 1.91% while the average EBIT to syariah banking groups are 1.53%. The average of ROA to conventional banking groups are 3.01% while the average ROA to syariah banking groups are 1.99%. The average of ROE to conventional banking groups is 24.19% while the average of ROE to syariah banking groups is 33.31%. The average of NIM to conventional banking groups during period 2007 to 2011 are 7.08% while the average of NIM to syariah banking groups during period 2007 to 2011 are 8.14%. The average of CAR to conventional banking groups is 15.63%, while the average of CAR to syariah banking groups during the period are 12.19%.

Basel Capital Adequacy Ratio Standard in The Light of Islamic Law Perspective

2016 ◽  
Vol 1 ◽  
pp. 308-317
Author(s):  
Adi Rahmanur Ibnu
Keyword(s):  
Financial Crises ◽  
Global Economy ◽  
Banking Sector ◽  
Islamic Law ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Minimum Capital ◽  
Capital Adequacy Ratio ◽  
Global Banking ◽  
Banking Development

Bank is one of the most important pillars of economy activities. However, banking sector has a real potential crisis threat. Alongside with the steady current global banking development, financial crises that have happened clearly affected global economy. Based on that situation, BIS (Bank for International Settlement) – an international financial standard setting organization, realizes the urgency to establishan international financial standard and supervision to anticipate future potential financial crises. This research aims to identify how Capital Adequacy Ratio Standard in Basel Capital Accord (II) based on Islamic law perspective. The research is conducted by analyzing Basel Capital Accord published by BIS. The research uses library research method to find out the aimed result. The focus is on the 1st pillar of Basel II publication that is Minimum Capital Requirements (CAR) policy. CAR, as an Islamic economics policy, will be analyzed using falāḥ approach. Falāḥ is an Islamic economics objective that consists of happiness, success, accomplishment or good luck concept. The earthly dimension of falāḥ has some parameters that can be used to analyze Islamic economics policy. Additionally, the Islamic fiqh maxim takes part in analyzing the policy. The maṣlaḥat concept in fiqh maxim approach shares aim with falāḥ concept in the sense that all of sharia law aims for success, happiness, eternal survival etc. The maṣlaḥat can be accomplished by extinguishing mafsadat or seizing maṣlaḥat. The maṣlaḥat aspect is essential to determine the compatibility Basel Capital Accord with jurisprudential maxim i.e harm must be dispelled (al-dharāru yuzāl). The conclusion results are, 1) Basel Capital Accord focuses on macro-prudential aspect in order to anticipate potential financial crises, 2) beneficial/interest (maṣlaḥat) aspects of the hereafter, cooperation principle, justice, fairness and the prohibition of exploitation are not the core value of Basel Capital Accord frame work, thus 3) the achievement of maslahat as intended by sharia i.e. jurisprudential maxim are not convincing. Therefore, 4) Basel Capital Accord as a regulation basis is not in line with jurisprudential maxim i.e harm must be dispelled (al-dharāru yuzāl).

Impacts of Financial Integration in the Asia Economic Community on Competitiveness of the Commercial Banks in Vietnam

2018 ◽  
Vol 34 (4) ◽  
Author(s):  
Nguyen Cam Nhung
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Financial Integration ◽  
International Standards ◽  
Capital Adequacy ◽  
Viet Nam ◽  
Economic Community ◽  
Industrial Policies ◽  
Capital Adequacy Ratio ◽  
Internet Economy

This paper assesses the impacts of financial integration in the Asia Economic Community (AEC) on the capacity of finance and provision of financial services of Vietnamese commercial banks. In recent years, Vietnamese commercial banks have achieved some successes as reflected in the growth indicators of operation scales, charter capital and total assets. However, under the pressure of integration, the capital adequacy ratio (CAR) fell slightly in 2016 resulting from the applying of the CAR calculation method to commercial banks in accordance with the new regulations towards step by step approaching international standards. Compared to other countries in the AEC, the capacity of finance and provision of financial services of the Vietnamese commercial banks remains low. As a result, it is necessary to carry out synchronous and drastic measures in the coming time to enhance the competitiveness of the Vietnamese commercial banks. Keywords Competitiveness, financial integration, AEC, commercial bank, Vietnam References [1] UNCTAD, World Investment Report 2018: Investment and New Industrial Policies, June 2018.[2] Cục Đầu tư nước ngoài, “Tình hình thu hút Đầu tư nước ngoài 8 tháng năm 2018”, 2018, http://fia.mpi.gov.vn/tinbai/6045/Tinh-hinh-thu-hut-Dau-tu-nuoc-ngoai-8-thang-nam-2018.[3] Google and Temasek, “e-Conomy SEA Spotlight 2017: Unprecedented growth for Southeast Asia’s $50B internet economy, 2017”, 2017.[4] Tô Thị Thanh Trúc, “Khu vực tài chính Việt Nam trong bối cảnh hội nhập tài chính ASEAN”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[5] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Ngân hàng TMCP Ngoại thương Việt Nam: Chủ động đón AEC”, Tạp chí Kinh tế và Dự báo, Số 2 tháng 1/2016.[6] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Khả năng thích ứng của các ngân hàng thương mại Việt Nam khi tham gia hội nhập AEC”, Tạp chí Tài chính, Kỳ 1 tháng 12/2015 (622).[7] Trần Thị Vân Anh, “Ngân hàng Việt Nam trong tiến trình gia nhập Cộng đồng Kinh tế ASEAN”, Tạp chí Khoa học Xã hội Việt Nam, 4 (2016) 101.[8] Nguyễn Thị Diễm Hiền, “Một số vấn đề về ngân hàng thương mại khi Việt Nam gia nhập Cộng đồng Kinh tế Asean”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[9] Blattner N., “Competitiveness of Banks”, Journal of Financial Economics, N.21 (1992).[10] PwC Growth Markets Centre, The Future of ASEAN - Time to Act Financial Services, 2018.

The Determinants of Capital Adequacy Ratio: The Case of the Vietnamese Banking System in the Period 2011-2015

2017 ◽  
Vol 33 (2) ◽  
Author(s):  
Ngoc Anh Nguyen
Keyword(s):  
Banking System ◽  
Precious Metals ◽  
Capital Adequacy ◽  
The Other ◽  
Total Asset ◽  
Data Set ◽  
Hand Size ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Positive Effect

The analysis of a data set of observation for Vietnamese banks in period from 2011 - 2015 shows how Capital Adequacy Ratio (CAR) is influenced by selected factors: asset of the bank SIZE, loans in total asset LOA, leverage LEV, net interest margin NIM, loans lost reserve LLR, Cash and Precious Metals in total asset LIQ. Results indicate based on data that NIM, LIQ have significant effect on CAR. On the other hand, SIZE and LEV do not appear to have significant effect on CAR. Variables NIM, LIQ have positive effect on CAR, while variables LLR and LOA are negatively related with CAR.

RASIO LIKUIDITAS, RENTABILITAS DAN SOLVABILITAS SEBAGAI ALAT UKUR KINERJA KEUANGAN PT. BANK NEGARA INDONESIA PESERO) Tbk

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Widodo Widodo
Keyword(s):  
Good Condition ◽  
Capital Adequacy ◽  
Average Value ◽  
Capital Adequacy Ratio ◽  
Solvency Ratio ◽  
Year 2013

Solvency Ratio in this case measured with storey;level of Capital Adequacy Ratio ( CAR), during range of time five year of Bank of BNI have average value of equal to 20,72% be at good condition, and every year reside in the above rule of Indonesia Bank that is 8 - 9,9%. Analysis of ratio Likuiditas, Rentability And Solvabiltas which have been studied, appreciable hence that storey;level of health of Bank of BNI during period of year 2009 up to year 2013 categorized as bank of Performance.

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