scholarly journals Key determinants of deposits volume using CAMEL rating system: The case of Saudi banks

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261184
Author(s):  
Dania AL-Najjar ◽  
Hamzeh F. Assous
Keyword(s):  
Regression Model ◽  
Banking Sector ◽  
Stock Index ◽  
Financial Ratios ◽  
Second Phase ◽  
Rating Systems ◽  
Positive Effects ◽  
Negative Effect ◽  
Net Revenue ◽  
Asset Quality

CAMEL is considered one of the well-known banking rating systems used to build a proper bank ranking. In our paper, we investigate the CAMEL rating for Saudi banks, which is considered the second largest banking sector in GCC. The Saudi banking sector consists of 11 banks and is the leading sector in the Saudi stock index (TASI). In this research, we aim to determine the ranking of Saudi banks according to CAMEL composite and CAMEL overall ratings and explore the effects of these ratings on banks’ total deposits for the period from 2014 to 2018. The methodology involves four phases. In the first phase, we calculate the key financial ratios of CAMEL’s composites for each bank. In the second phase, we rank the banks from 1 to 11 to each one of CAMEL’s composites for each bank per year. In the third phase, we rank Saudi banks according to CAMEL composite and CAMEL overall. Finally, in the fourth phase, we run a regression model using CAMEL financial ratios rank as independent variable and banks’ total deposits as a dependent variable. Using the stepwise regression method, the results indicated that the best regression model has an adjusted R2 of 73.4% and a standard error of around 0.58. The results further indicated that capital measured by CAR, management as an efficiency ratio, earning with ROE proxy, and liquidity as loans to deposits have positive effects on banks’ total deposits. Meanwhile, earnings as net interest income to net revenue and liquidity calculated by CASA have a negative effect on banks’ total deposits. Finally, asset quality ratios and the rest of the ratios have no significant effect on banks’ total deposits.

scholarly journals Determinants Of Liquidity Risk In Banking Sector On The Indonesia Stock Exchange

2019 ◽  
Vol 23 (3) ◽  
pp. 461
Author(s):  
Susy Muchtar, Gianvha Sena Rustimulya
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Economic Cycle ◽  
Capital Adequacy Ratio ◽  
Bank Managers ◽  
Negative Effect ◽  
Independent Variable ◽  
Asset Quality

This research aims to determine the factors that impact liquidity risk. The sample used in this research is a banking sector that is listed on the Indonesia Stock Exchange (IDX) in the period 2008-2017. Independent variable in this research bank size, deposits, profitability, cost of funds, asset quality, capital adequacy ratio, economic cycle, and inflation and the dependent variable is liquidity risk. The amount of the sample of the research amounted to 25 banking sector, by using purposive sampling. The result of this research indicates that bank size, profitability, cost of funds, and asset quality have a negative effect on liquidity risk, while deposits, capital adequacy ratio, economic cycle, and inflation have no impact on liquidity risk. The results of this study are expected to be used as a reference for bank managers and investors in looking at the factors that affect the liquidity risk in the banking industry.

INSURANCE AND REAL OUTPUT: THE KEY ROLE OF BANKING ACTIVITIES

2011 ◽  
Vol 17 (2) ◽  
pp. 235-260 ◽  
Author(s):  
Chien-Chiang Lee
Keyword(s):  
Structural Breaks ◽  
Banking Sector ◽  
Panel Cointegration ◽  
Insurance Market ◽  
Real Output ◽  
Cross Sectional ◽  
Positive Effects ◽  
Long Run ◽  
Cointegration Tests ◽  
Negative Effect

This paper applies panel cointegration tests and panel vector error correction models for 17 OECD countries and considers cross-sectional dependence and structural breaks to investigate the interrelationship between an insurance market's development and real output, controlling for banking activities. We first obtain evidence of a fairly strong long-run equilibrium relationship among them. Second, we find that insurance market development has positive effects on real output and that banking activities have an unfavorable, if not negative, effect on real output. In fact, insurance market activity is much more productive than banking sector activity. Finally, there exists bidirectional causality between insurance premiums and economic growth in the long run, suggesting the existence of the feedback hypothesis for the insurance–output nexus.

scholarly journals Pengaruh Profitabilitas, Efisiensi Operasional, Kualitas Aset, dan Likuiditas Terhadap Tingkat Kecukupan Modal Pada Sektor Perbankan yang Terdaftar di Bursa Efek Indonesia

Jurnal Ecogen ◽  
2020 ◽  
Vol 3 (3) ◽  
pp. 385
Author(s):  
Putri Utami ◽  
Abel Tasman
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Operational Efficiency ◽  
Capital Adequacy ◽  
Descriptive Research ◽  
Normality Test ◽  
Negative Effect ◽  
Asset Quality ◽  
Positive Effect

This study aims to examine the effect of profitability, operational efficiency, asset quality, and liquidity on the capital adequacy level of the banking sector which is listed on the Indonesia Stock Exchange. This type of research is classified as causative descriptive research. The sample of this study was 28 banking companies listed on the Indonesia Stock Exchange in 2016-2018 selected using the purposive sampling method. The type of data in this study is secondary data. Data were collected by documentation techniques and analyzed using multiple regression analysis methods. Analysis prerequisite tests conducted include normality test, heterokedasticity test, multicollinearity test, and autocorrelation test. The data collected is processed with SPSS version 26.0. The results showed that profitability has a significant positive effect on the level of capital adequacy, Operational efficiency has a positive and not significant effect on the level of capital adequacy, asset quality has a significant negative effect on the level of capital adequacy, and liquidity has a negative and insignificant effect on the level of capital adequacy in the sector banks which are listed on the Indonesia Stock Exchange.Keywords : profitability, operational efficiency, asset quality, liquidity

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

STUDY OF CAMEL RATING SYSTEM IN BANKING SUPERVISION- A CASE STUDY OF NEPAL BANGLADESH BANK LTD

2018 ◽  
Vol 1 (3) ◽  
pp. 74-96
Author(s):  
Dr. S.U. Gawde ◽  
Prof.. Alekha Chandra Panda ◽  
Prof. Devyani Ingale
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Rating System ◽  
Financial Risks ◽  
Economic Activities ◽  
Effective Measure ◽  
Critical Elements ◽  
Financial Soundness ◽  
The Usa ◽  
Asset Quality

The banking sector  plays in important role in the country’s economy, acting as an intermediary to all industries. As the banking sector has a major impact on the economy as a whole. Performance evaluation of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. Many methods are employed to analyse banking performance. One of the popular methods is the CAMELS framework, developed in the early 1970’s by federal regulators in the USA. The CAMELS rating system is based upon an evaluation of six critical elements of a financial institution’s operations: Capital adequacy, Asset quality, Management soundness, Earnings and profitability, Liquidity, and Sensitivity to market risk. Under this bank is required to enhance capital adequacy, strengthen asset quality, improve management, increase earnings, maintain liquidity, and reduce sensitivity to various financial risks. In the present study an attempt was made to evaluate the performance & financial soundness of NEPAL BANGLADESH BANK LTD using CAMEL approach. Quantitative parameters are computed and updated on a quarterly basis while in respect of the qualitative parameters the ratings / marks given at the time of previous on-site examination

Analysis of Financial Performance of Public Sector Banks in India: CAMEL

2020 ◽  
pp. 097674792096686
Author(s):  
Yudhvir Singh ◽  
Ram Milan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Positive Impact ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Factors Affecting ◽  
Public Sector Banks ◽  
The Government ◽  
And Performance ◽  
Asset Quality

Public sector banks have been merged by the government in the last few years. This is the rationale behind conducting this study. The purpose of this article is to determine the factors affecting the performance of public sector banks in India and the interrelationship between bank-specific determinants and performance of public sector banks. In this article, we shall analyse the financial data of all the public sector commercial banks for a period spread across 11 years (2009–2019); Capital adequacy, Assets quality, Management efficiency, Earning, and Liquidity (CAMEL) has been used as a performance determinant; system generalised method of moments (GMM) analysis has been used to find the effect of determinants on the performance measurement of public sector banks; and CCA (canonical correlation analysis) has been used to find the interrelationship between the bank-specific determinants and the performance of public sector banks. The finding has important implications in terms of performance in the banking sector. Certain limitations of this study are: It is based on secondary data. The study only covers the financial aspects and not the non-financial aspects. It is found that the asset quality is negatively related with performance of public sector banks. Liquidity and inflation are inversely related to performance of public sector banks in India. Capital adequacy is positively related with banks’ performance, but inversely related with banks’ interest margin. GDP growth has a significant positive impact on banks’ performance, but inversely related with banks’ interest income. Inflation rate is inversely related with banks’ performance. Banking sector reforms are insignificantly related with banks’ performance.

scholarly journals Extending the Coverage of the Trust–Acceptability Model: The Negative Effect of Trust in Government on Nuclear Power Acceptance in South Korea under a Nuclear Phase-Out Policy

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3343
Author(s):  
Seungkook Roh ◽  
Hae-Gyung Geong
Keyword(s):  
South Korea ◽  
Nuclear Power ◽  
Public Acceptance ◽  
Equation Modeling ◽  
Trust In Government ◽  
The Public ◽  
Positive Effects ◽  
Negative Effect ◽  
Nuclear Phase ◽  
Phase Out

This article extends the coverage of the trust–acceptability model to a new situation of nuclear phase-out by investigating the effect of trust on the public acceptance of nuclear power, with South Korea as the research setting. Through the structural equation modeling of a nationwide survey dataset from South Korea, we examined the effects of the public’s trust in the various actors related to nuclear power on their perceptions of the benefits and risks of nuclear power and their acceptance of nuclear power. Contrary to previous studies’ findings, in South Korea, under a nuclear phase-out policy by the government, trust in government revealed a negative impact on the public acceptance of nuclear power. Trust in environmental non-governmental groups also showed a negative effect on nuclear power acceptance. In contrast, trust in nuclear energy authority and trust in nuclear academia both had positive effects. In all cases, the effect of a trust variable on nuclear power acceptance was at least partially accounted for by the trust’s indirect effects through benefit perception and risk perception. These findings strengthen the external validity of the trust–acceptability model and provide implications for both researchers and practitioners.

scholarly journals Enhanced aging kinetics in Al-Mg-Si alloys by up-quenching

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Florian Schmid ◽  
Philip Dumitraschkewitz ◽  
Thomas Kremmer ◽  
Peter J. Uggowitzer ◽  
Ramona Tosone ◽  
...  
Keyword(s):  
Heat Treatment ◽  
Treatment Time ◽  
Cluster Formation ◽  
High Strength ◽  
Second Phase ◽  
Second Phase Particles ◽  
Negative Effect ◽  
High Elongation ◽  
Aging Kinetics ◽  
Complex Parts

AbstractPrecipitation-hardened aluminium alloys typically obtain their strength by forming second-phase particles, which, however, often have a negative effect on formability. To enable both lightweight construction and forming of complex parts such as body panels, high strength and formability are required simultaneously. Cluster hardening is a promising approach to achieve this. Here, we show that short thermal spikes, denoted as up-quenching, increase aging kinetics, which we attribute to the repeated process of vacancies being formed at high temperatures and retained when cooled to lower temperatures. Combined with further heat treatment, the up-quenching process promotes rapid and extensive cluster formation in Al-Mg-Si alloys, which in turn generates significant strengthening at industrially relevant heat treatment time scales. The high elongation values also observed are attributed to reduced solute depleted zones along grain boundaries.

Factors Affecting NPAs in Indian Banking Sector

Paradigm ◽  
2021 ◽  
Vol 25 (2) ◽  
pp. 181-193
Author(s):  
Nitya Garg
Keyword(s):  
Regression Model ◽  
Multiple Regression ◽  
Banking Sector ◽  
Relative Weight ◽  
Multiple Regression Model ◽  
Factors Affecting ◽  
Weight Analysis ◽  
Specific Factors ◽  
Relative Weight Analysis ◽  
Bank Specific Factors

Banking sector is the backbone of any economy, so it is necessary to focus on its performance which is largely affected by its non-performing assets (NPAs). In the year 2018–2019, NPA of scheduled banks was Rs 355,076 Crore which is 3.7% of net advances. The purpose of this study is to identify the determinants based on analysis from previous literatures, and majorly macroeconomic and bank specific factors which are affecting NPAs using the relative weight analysis and to frame a model to predict future NPAs using multiple regression model using SPSS. The study also attempts to focus on actions and remedies that banks should make to control future NPAs. Findings of the study will act as a scaffolding for financial analysts and policymakers to prevent the conversion of its performing assets into NPAs and also help in proper management of banks and also in the recovery of economy.

Recreation Travel Time Conditional on Labour Supply, Work Travel Time and Income

1996 ◽  
Vol 2 (3) ◽  
pp. 265-272 ◽  
Author(s):  
Tomas Sjögren ◽  
Kurt Brännäs
Keyword(s):  
Regression Model ◽  
Travel Time ◽  
Economic Model ◽  
Household Income ◽  
Labour Supply ◽  
Hours Of Work ◽  
Negative Effect ◽  
Swedish Data

An economic model is proposed in which individuals are assumed to choose recreation travel time conditional on work travel time, hours of work and income. Using Swedish data and a grouped regression model, work travel time is found to have a significant and negative effect on recreation travel time for both spouses in a household. Income has a negative and significant effect for males but the effect is insignificant for females. Labour supply is not found to have any significant effect.

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