scholarly journals Bank Specific and Macroeconomic Determinants of Commercial Bank Performance in Bangladesh

2021 ◽  
Vol 10 (2) ◽  
pp. 115-130
Author(s):  
Shakila Zerin Bony
Keyword(s):  
Commercial Bank ◽  
Audit Committee ◽  
Positive Relationship ◽  
Banking Sector ◽  
Management Policy ◽  
Bank Performance ◽  
Macroeconomic Factors ◽  
Wide Range ◽  
The Government ◽  
Macroeconomic Determinants

The main purpose of this study is to examine the impacts of bank-specific and macroeconomic factors on the commercial bank performance measures (ROA, NIM, and ROE in this case) in Bangladesh. The study identifies bank-specific characteristics and macroeconomic determinants of performance in Bangladesh’s banking sector over the years 2009 to 2018. The study uses relevant data from a sample of 10 commercial banks in Bangladesh. The determinants are identified by using correlation and regression analysis. This finding serves as an indicator that the bank-specific and macroeconomic variables selected for this study provide a better description of ROA rather than net interest margin (NIM) and ROE. Among all the bank-specific determinants board size, audit committee meetings, and foreign ownership have a positive relationship with the bank’s performance. Specifically, inflation and GDP are observed to have a positive relationship with bank performance. The findings of this research can be of great help to a wide range of entities such as academicians, bankers, the government, students, and investors. This study can be helpful to bank management by providing valuable information thus assisting in the construction of efficient management policy decisions in order to ensure higher profits.

scholarly journals Pengaruh Islamic Corporate Governance dan Islamic Social Reporting terhadap Kinerja Keuangan Bank Syariah di Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 11-20
Author(s):  
Ibnu Trilaksono ◽  
◽  
Agrianti Komalasari ◽  
Chara Pratami Tidespania Tubarad ◽  
Yuliansyah Yuliansyah ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Bank ◽  
Banking Sector ◽  
Stock Exchange ◽  
Social Reporting ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Exchange Contribution

Abstract Purpose: This study examined the effect of Islamic Corporate Governance and Islamic Social Reporting on the Financial Performance of Islamic Banks in Indonesia at Sharia Commercial Bank Companies Listed on the Indonesia Stock Exchange. Research methodology: This study used multiple regression as the method to analyze the result of the research. By using 14 shariah banking data, this research will analyze the performance of the Indonesian general bank. Result: This study indicates that the variables that affect Islamic bank performance in this research are not implemented effectively. Limitations: The sample of this study was only 14 Islamic commercial banks and only used the Islamic banking sector in Indonesia, which is listed on the Indonesia stock exchange. Contribution: This research is helpful for further research. One of the guidelines in choosing which variabels to use and which one to use in the study should be understood in selecting Islamic financial performance.

scholarly journals Board of director’s characteristics and bank performance: Evidence from GCC region

2019 ◽  
Vol 17 (1) ◽  
pp. 14-23 ◽  
Author(s):  
Ehab R. Elbahar
Keyword(s):  
Audit Committee ◽  
Banking Sector ◽  
The Political ◽  
Bank Performance ◽  
Islamic Banks ◽  
Board Of Director ◽  
Gulf Countries ◽  
Risk Committee ◽  
Conventional Banks ◽  
High Level

The main purpose of the current study is to examine the association between Corporate Governance’s (GC) variables represented by board characteristics and Bank performance measured by ROE and ROA in GCC banking sector. For the purposes of this study, the sample of 68 banks in gulf countries during the period from 2013 to 2017 have been selected and divided the data to Islamic banks and conventional banks (16 Islamic banks, 52 Non-Islamic). Furthermore this study uses the nonparametric regression OLS and Quantile analysis. The current study suggest that the existence of female directors on the board of director in last years is significantly associated with better performance, we concludes that females in GCC banking sector in latest years reached a high level of maturity in understanding banking industry. Furthermore, this study suggests that the audit committee associated positively and significantly with bank performance, it means that the audit committee in latest years plays important role in enhancing the performance. In addition to the above, the political member on the board and risk committee does not affect the performance significantly. Both of board size and Sharia committee are associated positively and significantly with performance.

scholarly journals Bank Specific and Macroeconomic Determinants of Bank Profitability

2016 ◽  
Vol 3 (2) ◽  
pp. 14-18
Author(s):  
Muhammad Ehsan Javaid
Keyword(s):  
Panel Data ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Banking Sector ◽  
Random Effect ◽  
Macroeconomic Factors ◽  
Customer Base ◽  
Panel Data Regression ◽  
Data Regression ◽  
Macroeconomic Determinants

This study investigated the profitability of the banking sector in Pakistan. It evaluated the effects of both internal (bank-specific) and external (macroeconomic) factors on bank’s profitability from 2006 to 2013 period. The data of 34 commercial banks operating in Pakistan has collected. The data was balanced panel data and analyzed by random effect panel data regression analysis. Results confirmed that bank size and non-interest income had positive significant relationship on banking profitability. Deposit had negative significant relationship with banking profitability because of maintaining high liquidity, which increased cost of holding asset that ultimately, decrease profitability. As major participant, banks of Pakistan banking sector were small size banks so most important factor out of significant factors were income from non-interest facilities provided by these commercial banks. By increasing such facilities increased the bank’s customer base, which ultimately increased bank’s profitability. Macro-economic factors showed no significant effect on bank’s profitability.

scholarly journals Determinants of Non-Performing Loans for the EEC Region. A Financial Stability Perspective

2020 ◽  
Vol 15 (4) ◽  
pp. 621-642
Author(s):  
Luminita Roxana Tatarici ◽  
Matei Nicolae Kubinschi ◽  
Dinu Barnea
Keyword(s):  
Financial Stability ◽  
Fixed Effects ◽  
Banking Sector ◽  
Real Economy ◽  
Macroeconomic Factors ◽  
The Real ◽  
Macroeconomic Conditions ◽  
Governance Indicators ◽  
Credit Cycle ◽  
The Government

AbstractThis article investigates the determinants of non-performing loans for a panel of EEC countries and the implications for the real economy, covering the period 2005-2017. Among the determinants, the paper proposes macroeconomic factors, banking sector variables, and cost and governance indicators. Additionally, the paper explores the extensive use of macroprudential measures in these countries. Using a panel with fixed effects and a dynamic GMM estimator, the results support the existing findings that adverse macroeconomic developments are generally associated with higher non-performing loans, while increases in NPLs have a rather transitory effect on the real economy and credit. NPL ratios increase if macroeconomic conditions deteriorate, while an improvement in the government effectiveness reduces them. A more profitable and better capitalized banking sector generally leads to lower NPLs. Moreover, countries with higher past credit growth rates witnessed higher NPLs in the periods that followed. These results support the use of macroprudential measures for increasing the resilience of borrowers, such as limits on the indebtedness level (such as debt service-to-income, DSTI or loan-to-value, LTV caps), as tools to temper the credit cycle.

Nonperforming loans and bank profitability: evidence from an emerging market

2016 ◽  
Vol 7 (4) ◽  
pp. 462-481 ◽  
Author(s):  
Esther Laryea ◽  
Matthew Ntow-Gyamfi ◽  
Angela Azumah Alu
Keyword(s):  
Banking Sector ◽  
Emerging Market ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Policy Makers ◽  
Content Type ◽  
Nonperforming Loans ◽  
Panel Model ◽  
Macroeconomic Determinants ◽  
The Impact

Purpose The purpose of this paper is to investigate the bank-specific and macroeconomic determinants of nonperforming loans (NPLs) as well as the impact of NPLs on bank profitability. Design/methodology/approach Using a sample of 22 Ghanaian banks over the period 2005-2010, the study employs a fixed effect panel model in estimating three different empirical models. Findings The study finds new evidence of bank-specific factors as well as macroeconomic factors determining NPLs. Inflation and industry concentration are not significant in determining NPLs, although both are positively related to NPLs. Practical implications The findings of this study have important implications for policy makers and bank managers. Originality/value The paper offers significant value in shaping and improving the banking sector of emerging markets.

scholarly journals An Empirical Analysis of Impact of Macroeconomic Variables on Indian Stock Market

2019 ◽  
Vol 8 (3) ◽  
pp. 2033-2038
Keyword(s):  
Stock Market ◽  
Banking Sector ◽  
Research Work ◽  
Share Price ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Repo Rate ◽  
Macroeconomic Determinants ◽  
Indian Stock Market ◽  
The Impact

This research paper, using monthly returns of macroeconomic variables, Nifty, and stock price from 3 sectors, examines the impact of macroeconomic determinants on Nifty and banking sector stocks from May 2009 to July 2018. The paper also analyses the granger cause between macroeconomic variables and Nifty; macroeconomic variables and Indian banking sector stocks. This paper also extends the research work in finding out the impact before and during Narendra Modi government. Johansen’s co-integration and granger causality tests were applied for this research work. The results of Johansen’s co-integration proved that there is a long relation between selected macroeconomic factors, i.e. bank rate, repo rate, and reverse repo rate, and Indian stock market and also on banking sector share price. There is granger cause before Modi Government and during Modi Government. It is concluded that, a positive significant relationship exists between macroeconomic determinants and Indian stock market.

scholarly journals Government-linked banks’ performance in Jordan

2017 ◽  
Vol 14 (2) ◽  
pp. 44-50
Author(s):  
Mohammad Ahid Ghabayen ◽  
Ahmad Omar Hardan ◽  
Zaid Jaradat ◽  
Mohannad Alshbiel
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Banking Sector ◽  
Bank Performance ◽  
Government Ownership ◽  
Policy Makers ◽  
The Past ◽  
Significant Difference ◽  
The Government ◽  
The Relationship

The main objective of this study is to examine the relationship between government ownership and bank performance in Jordan. The banking sector has been widely ignored in the past corporate governance studies due to its strict system. Using a panel data from 2004 to 2013 (147 observations/years), the multiple regression analysis shows that increasing the percentage of shareholdings leads to higher profitability. Additional government-linked banks (GLBs) generally outperform their unlinked counterparts. However, their outperformance is contingent to the significance percentage of the shareholdings. On other words, if the government shareholdings are not significant (less than 10%) the government ownership does not make a significant difference in the performance. Using panel data provide us with a significant roles played by the period of the study. The banks show increasing in their performance through the period of this study. However, the size and the age of the banks are found to be insignificant while the leveraged banks significantly underperform their counterparts. The results of this study might be of interest of potential investors, policy makers, governance agencies and information users.

Performance Analysis of Indian Banks – A comparative study of Commercial Bank and Urban Cooperative Bank

2020 ◽  
pp. 226-233
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Research Study ◽  
Economic Reforms ◽  
Effective Measure ◽  
Evaluation Of Performance ◽  
Cooperative Banks ◽  
The Government ◽  
Indian Banks ◽  
Recent Policy

Since the start of economic reforms, the banking sectors in India has undergone a lot of churn both in terms of competition and regulation. The Government of India took many initiatives to reform the Cooperative Banking Sector. These Banks must adhere to the various risk management norms of the Government. Thus, the basic intention of this paper was to understand the preparedness of Indian banks and in specific Urban Cooperative Banks (UCB’s) in the context of economic reforms, recent policy developments. Hence, we tried to evaluate the performance of selected banks form the Urban Cooperative and a commercial bank. Evaluation of performance of banking sector is one of the most effective measure as well as indicator in order to evaluate the soundness of any economy. We did the analysis through the CAMEL analysis for the selected banks namely of AXIS and NKGSB bank for the period of 2015-16 to 2017-18 and are rated accordingly. The result of this research study indicates that the banks have been progressive, but in the wake of any crisis in the financial system or stronger regulations, it might be difficult for these banks to sustain their performance.

scholarly journals Industry-Specific and Macroeconomic Determinants of Non-Performing Loans: A Comparative Analysis of ARDL and VECM

2019 ◽  
Vol 12 (1) ◽  
pp. 325 ◽  
Author(s):  
Changjun Zheng ◽  
Probir Kumar Bhowmik ◽  
Niluthpaul Sarker
Keyword(s):  
Banking Sector ◽  
Statistical Significance ◽  
Banking System ◽  
Positive Association ◽  
Bank Loan ◽  
Significant Positive Association ◽  
Macroeconomic Factors ◽  
Distributed Lag ◽  
Vec Model ◽  
Macroeconomic Determinants

With the growth of an economy, the banking industry expands and the competitiveness becomes intense with the increased number of banks in the economy. The objective of this research was to discover the influence of industry-specific and macroeconomic determinants of non-performing loans (NPLs) in the entire banking system of Bangladesh. We performed an analysis for the period from 1979 to 2018 by an autoregressive distributed lag (ARDL) model and checked the robustness of the results in the vector error correction (VEC) model. The outcomes of this research suggest that both industry-specific and macroeconomic factors influence NPLs significantly. Among the industry-specific determinants, bank loan growth, net operating profit, and deposit rates negatively impact NPLs with statistical significance while bank liquidity and lending rates have a significant positive affiliation with NPLs. Gross domestic product (GDP) growth and unemployment, among the macroeconomic variables, have a negative connection with NPLs. Whereas, domestic credit and exchange rates have a significant positive association with NPLs. The contribution of this research is that the outcomes found by means of econometric models can be used for predicting and measuring NPLs in upcoming years, not only for Bangladesh but also for developing and emerging economies. Individual banks, as well as the banking sector, by and large, can get a guideline from this research.

scholarly journals Determinants of bank profitability: Evidence from the Greek banking sector

2009 ◽  
Vol 54 (182) ◽  
pp. 93-118 ◽  
Author(s):  
Constantinos Alexiou ◽  
Voyazas Sofoklis
Keyword(s):  
Panel Data ◽  
Banking Sector ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Traditional Structure ◽  
Greek Banks ◽  
Macroeconomic Determinants ◽  
Empirical Framework

This paper investigates the effects of bank-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct- Performance (SCP) hypothesis. A panel data approach has been adopted and effectively applied to six Greek banks. The evidence generated suggests that for any consistent or systematic size the profitability relationship is relatively weak. Most of the bank-specific determinants were found to significantly affect bank profitability. A more ambiguous picture emerged when the macroeconomic factors were considered.

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