scholarly journals The Effects Of Ownership Structure And Listed Status On Bank Risk In China

2013 ◽  
Vol 29 (3) ◽  
pp. 695 ◽  
Author(s):  
Maoyong Cheng ◽  
Hong Zhao ◽  
Junrui Zhang
Keyword(s):  
Regression Analysis ◽  
Credit Risk ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Capital Adequacy Ratio ◽  
Asset Quality ◽  
Relationship Of ◽  
The Relationship

This paper investigates the relationship of ownership structure, listed status and risk by using regression analysis based on the relevant data of Chinas commercial banks. Three main results emerge. First, compared to the state-owned banks, foreign-owned commercial banks exhibit better asset quality, lower credit risk and higher capital adequacy ratio; city commercial banks have lower credit risk and joint-stock commercial banks have lower credit risk and capital adequacy ratio. Second, listed status improves the asset quality and capital adequacy ratio. Finally, we also find that the listed status significantly moderates the relationship between ownership structure and risk. In conclusion, this study provides a theoretical reference for the reform of Chinas commercial banks.

scholarly journals PENGARUH CAR, BOPO, NPL, NIM, DAN LDR TERHADAP ROA PADA PERUSAHAAN DI SEKTOR PERBANKAN YANG TERDAFTAR DI BEI PERIODE 2012-2016

2019 ◽  
Author(s):  
Redwal Fernando ◽  
Aminar Sutra Dewi
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
The Relationship ◽  
Interest Margin

This study aims to examine the relationship between Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), BOPO, Net Interest Margin (NIM), Loan to Deposit Ratio (LDR) for Return On Asstes (ROA). The number of samples used are 9 commercial banks listed on the Indonesia Stock Exchange period 2012-2016. The method used in this study using multiple regression analysis using Eviews 6. From the results of tests performed show that CAR statistically does not significantly influence tehadap ROA, BOPO significantly influence teh ROA, NPL has significant effect to ROA, different from NIM which has no significant effect on ROA, and LDR has significant effec on ROA.

scholarly journals Pengaruh CAR, BOPO, NPL, NIM, dan LDR terhadap ROA pada Perusahaan di Sektor Perbankan yang Terdaftar di BEI Periode 2012-2016

JURNAL PUNDI ◽  
2018 ◽  
Vol 1 (3) ◽  
Author(s):  
Aminar Sutra Dewi
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
The Relationship ◽  
Interest Margin

This study aims to examine the relationship between Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), BOPO, Net Interest Margin (NIM), Loan to Deposit Ratio (LDR) for Return On Asstes (ROA). The number of samples used are 9 commercial banks listed on the Indonesia Stock Exchange period 2012-2016. The method used in this study using multiple regression analysis using Eviews 6. From the results of tests performed show that CAR statistically does not significantly influence tehadap ROA, BOPO significantly influence teh ROA, NPL has significant effect to ROA, different from NIM which has no significant effect on ROA, and LDR has significant effect on ROA. Keywords: CAR, BOPO, NPL, NIM, LDR and ROA

scholarly journals Loan Loss Provision and Risk-Taking Behavior of Commercial Banks in Pakistan: A Dynamic GMM Approach

2019 ◽  
Vol 11 (19) ◽  
pp. 5209 ◽  
Author(s):  
Changjun Zheng ◽  
Shumaila Meer Perhiar ◽  
Naeem Gul Gilal ◽  
Faheem Gul Gilal
Keyword(s):  
Interest Rate ◽  
Credit Risk ◽  
Risk Taking ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Loan Loss ◽  
Loan Loss Provision ◽  
Capital Adequacy Ratio ◽  
Risk Taking Behavior

The paper analyzes the determinants of the loan loss provision (LLP) of 22 commercial banks in Pakistan from 2010 to 2017. The motive of the research is that LLP is a measure of credit risk as a proxy for bank risk-taking behavior profits and banks’ sustainability. Especially after the occurrence of a global financial crisis. The quantitative research method of data collection from Bureau Van Dijk’s BankFocus portal and the World Bank’s World Development Indicators. Other than considering specific bank variables such as capital adequacy ratio, return on average equity, and government securities, the effects of macroeconomic variable inflation and lending interest rates are explicitly studied. The model of pooled ordinary least squares (POLS), fixed effect (FE), panel corrected standard error (PCSE), and panel data estimation in the form of a general method of moments (GMM) two-step system is used to find the risk-taking behavior of banks in Pakistan. The results obtained by the use of inflation (INF) as an instrumental variable of LLP are highly dependable with a negative impact on loan loss provision. Lending interest rate (LIR) has a positive and significant relationship with LLP and contribute in the study of macroeconomic variables for bank risk-taking, excessive amount of interest rate was not beneficial for banks to earn profits especially during the economic crises. Return on average equity (ROAE) significantly moderates LLP with a negative interaction and helped the bank with profitable operations and save bank from solvency. Capital adequacy ratio (CAR) and government securities (GOV) are insignificant to LLP. The result is robust by measure of endogeneity, and highlights the important role of commercial banks’ sustainability to explain risk-taking behavior in Pakistan with the intention to increase profits after the occurrence of financial crises. The study further contributes to future research on managerial policy and decision making. In summary, the paper on loan loss provision has the capacity to forecast commercial banks’ credit risk for risk-taking in an emerging country.

scholarly journals Determinants of Capital Adequacy Ratio Commercial Banks in Nepal

2020 ◽  
Vol 12 (1) ◽  
pp. 194
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Data Analysis ◽  
Credit Risk ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Inflation Rate ◽  
Capital Adequacy ◽  
Management Quality ◽  
Capital Adequacy Ratio ◽  
Asset Quality ◽  
Domestic Products

The study attempts to determining the capital adequacy ratio of commercial banks in Nepal. This study is based on the secondary balance panel data. The data were collected from the 11 commercial banks for the period of 2013/14 to 2017/18 leading to 55 observations. The convenience sampling technique has been used to selection of sample of the study. The study period has been made for fresh data in the analysis. The descriptive, correlational and casual comparative research design has been used for data analysis. The study assumes that the capital adequacy ratio of commercial banks depends on bank specific variable: credit risk, asset quality, management quality, return on assets, liquidity, size of bank and macroeconomics variables gross domestic products growth rate and consumer price index i.e. inflation rate. The three different model like Pooled OLS, Fixed Effects Model and Random Effects Model have been used for data analysis. The results of the study revealed that the liquidity has positive and statistically significant effects on capital adequacy ratio.  Size of bank and inflation rate have negatively and statistically significant results. The others variables profitability, asset quality, credit risk, management quality and growth of gross domestic products does not effect to capital adequacy ratio. The study concluded that liquidity, size of bank and inflation have major determinants of capital adequacy ratio in Nepal.

scholarly journals Determinants of capital adequacy ratio: an empirical study on Egyptian banks

2015 ◽  
Vol 13 (1) ◽  
pp. 1166-1176 ◽  
Author(s):  
Hassan M. Hafez ◽  
Osama A. El-Ansary
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Significant Variable ◽  
Loan Loss ◽  
International Financial Crises ◽  
Management Quality ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Asset Quality

Capital adequacy rules are safety valve for regulators and banks’ clients/shareholders to reduce expected risks faced by commercial banks especially for cross border transactions as these rules are applied compulsory by all banks internationally. Applying these rules will achieve rational management and governance. This paper examines explanatory victors that influence capital adequacy ratio (CAR) in the Egyptian commercial banks. The study covers 36 banks during the period from 2003-2013. We examined the relationship between CAR as dependent variable and the following independent variables: earning assets ratio, profitability, and liquidity, Loan loss provision as measure of credit risk, net interest margin growth, size, loans assets ratio and deposits assets ratio. Furthermore, we investigate determinants of CAR before and after the 2007-2008 international financial crises. Results vary according to the period understudy. For the whole period 2003 to 2013 results show that liquidity, size and management quality are the most significant variables. Before the period 2008 results show that asset quality, size and profitability are the most significant variables. After the period 2009 results show that asset quality, size, liquidity, management quality and credit risk are the most significant variable that explain the variance of Egyptian banks’ CAR.

scholarly journals Bank Regulation and Level of Non performing Loans in Commercial Banks in Nakuru County Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 59-76
Author(s):  
Geoffrey Indeje Muhanji ◽  
Joseph Theuri
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Bank Regulation ◽  
Capital Adequacy ◽  
Liquidity Management ◽  
Macroeconomic Factors ◽  
Nonperforming Loans ◽  
Management Efficiency ◽  
Asset Quality ◽  
The Relationship

The study sought to determine the effect of bank regulation and level of nonperforming loans in commercial banks in Nakuru County Kenya. The specific objectives of the study were to explore the effect of capital adequacy on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to find out the effect of asset quality on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to evaluate the effect of liquidity management on the level of nonperforming loans in commercial banks in Nakuru County Kenya, to examine the effect of management efficiency on the level of nonperforming loans in commercial banks in Nakuru County Kenya and to determine the moderating effect of macroeconomic factors on the relationship between bank regulation and level of nonperforming loans. The literature review focused on portfolio theory of investment, capital asset pricing theory and the capital buffer theory of capital adequacy. The primary data was collected using structured questionnaires and secondary data was collected from the banking survey 2017 and central bank of Kenya annual supervisory reports. The study employed multiple linear regression analysis and the finding revealed that there exist a negative and statistically insignificant relationship between capital adequacy and non-performing loans. It was also observed that there exist a negative and statistically insignificant relationship between liquidity management and non-performing loans. On the other hand, there exist a positive and statistically significant relationship between asset quality and non-performing loans. Similarly, there exist a positive and statistically insignificant relationship between management efficiency and non-performing loans. Finally, the findings indicated that macroeconomic factors have moderating effect on the relationship between bank regulations and non-performing loans in commercial banks in Nakuru County. It was concluded that asset quality positively influences non-performing loans while management efficiency influence positively the non-performing loans. Similarly, liquidity management exerts a negative influence on non-performing loans. Finally, capital adequacy influence negatively on non-performing loans. The study recommends that Central Bank of Kenya should regularly access lending behavior to ensure compliance with banking regulations to avoid increasing incidences of non-performing loans. In addition, Central Bank of Kenya should closely monitor banks with deteriorating asset quality. Further, Central Bank of Kenya should strictly monitor the economic sector and ensure that banks provide adequate provisions for loans to mitigate risks of default. Furthermore, banks should maintain a good balance on deposits and lending out loans and adhere to regulators decisions about monetary policies. Finally, banks should increase the operational efficiency of operation weakness and improve corporate governance on the sanction of loans and Central Bank of Kenya should focus on managerial performance in order to detect banks with potential increases in non-performing loans.

scholarly journals Analysis of the Relationship between Credit Risk and Bank Performance of Some Commercial Banks in Ghana

2020 ◽  
Vol 8 (2) ◽  
pp. 34-51
Author(s):  
Joseph Acquah ◽  
Yusif Arthur ◽  
Damianus Kofi Owusu
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Quantitative Research ◽  
Banking Sector ◽  
Sampling Technique ◽  
Capital Adequacy ◽  
Research Approach ◽  
Independent Entity ◽  
The Relationship

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.

scholarly journals Impact of Firm Specific Factors on Credit Risk: A Case of Karachi Stock Exchange

2015 ◽  
Vol 54 ◽  
pp. 140-143
Author(s):  
Sajid Iqbal ◽  
Saima Nasir Chaudry ◽  
Nadeem Iqbal
Keyword(s):  
Regression Analysis ◽  
Credit Risk ◽  
Significant Relationship ◽  
Multivariate Regression ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Multivariate Regression Analysis ◽  
Specific Factors ◽  
Relationship Of ◽  
The Relationship

The current study aims to explore the relationship of firm’s specific factors i-e profitability, ROA, leverage and bank size on credit risk. The population of the study consists of manufacturing sector of Pakistan. The sample of study is cement sector of Pakistan. The sample units are 22 and listed at Karachi stocks exchange. The multivariate regression analysis is used to test the data of sample. The study revealed negative significant relationship of all firm specific factors with credit risk in Pakistan. Thus, the study supported historic investigations regarding credit risk.

scholarly journals THE EFFECT OF CREDIT RISK AND CAPITAL ADEQUACY RATIO UPON RETURN ON ASSET (A Case Study at Banking Listed in Indonesia Stock Exchange)

2019 ◽  
Vol 2 (02) ◽  
Author(s):  
Yuli Anwar ◽  
Etty Murwaningsari
Keyword(s):  
Regression Analysis ◽  
Credit Risk ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Significance Level ◽  
Capital Adequacy Ratio ◽  
Test Of Hypothesis

The aim of study to examine the effect of credit risk as measured by non performing loan, and capital adequacy ratio to profitability level measured by return on assets in banking companies listed in Indonesia Stock Exchange (IDX). This research belongs to causative research. The population in this study is the stateowned banks listed on Indonesia Stock Exchange. The sample of this study is determined by purposive sampling method so that obtained four sample companies. The type of data used is secondary data obtained from www.idx.co.id. The analysis method used is multiple regression analysis, correlation, determination and partial test of hypothesis with t test and simultaneously with F test. Based on the results of multiple regression analysis with 5% significance level, the results of this study conclude: (1) non performing loan has a negative and significant influence on profitability in banking companies listed on Indonesia Stock Exchange (2) capital adequacy ratio positively affect profitability on banking industry listed on Indonesia Stock Exchange. So simultaneously and together it can be concluded that NPL and CAR have an effect on ROA.

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