scholarly journals Efficiency of the Macedonian banking sector

2016 ◽  
Vol 26 (3) ◽  
pp. 317-329 ◽  
Author(s):  
Elena Naumovska ◽  
Violeta Cvetkoska
Keyword(s):  
Comparative Analysis ◽  
Interest Rates ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Operating Costs ◽  
Financial Deepening ◽  
High Concentration ◽  
Leading Role ◽  
Net Interest Margin ◽  
Efficiency Indicators

The subject of this paper is to measure the efficiency of the Macedonian banking sector by applying two approaches: firstly, comparative analysis on the efficiency indicators of the banking sector in the Republic of Macedonia and the countries of Central and Southeastern Europe (CSEE) and secondly, Data Envelopment Analysis (DEA). The aim is to provide directions and guidelines for further strengthening of the Macedonian banking sector. According to the comparative analysis of the efficiency indicators (net interest margin and operating costs) of the Macedonian banking sector and the countries of CSEE, the countries whose banking sector shows lower operating costs are characterized with a higher level of financial deepening and greater degree of financial intermediation. The high interest margins direct towards unsuitable allocation of financial resources and insufficient competitiveness in the domestic banking sector. When applying the DEA approach, it can be stated that the group of large banks marks the highest efficiency within the Macedonian banking sector. The high concentration degree of banking activities within the group of large banks with a leading role in determining the interest rates, results in a rigid interest policy of the banks. In the direction of strengthening the efficiency of the Macedonian banking sector as a whole, the obtained results show that it is necessary for the banks to be further consolidated so as to utilize the advantages of the economies of scale, increase competitiveness, offer a diversified structure of products, invest in new contemporary software solutions that will allow reinforcement of their employees? productivity and long-term reduction of the operating costs, as well.

scholarly journals Bank-Specific and Macroeconomic Determinants of Profitability: A Revisit of Pakistani Banking Sector under Dynamic Panel Data Approach

2020 ◽  
Vol 8 (3) ◽  
pp. 42 ◽  
Author(s):  
Habib-ur Rahman ◽  
Muhammad Waqas Yousaf ◽  
Nageena Tabassum
Keyword(s):  
Panel Data ◽  
Interest Rates ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Unobserved Heterogeneity ◽  
Dynamic Panel Data ◽  
Capital Adequacy ◽  
Bank Failures ◽  
Dynamic Panel ◽  
Macroeconomic Determinants

This study aims to examine the effect of the bank-specific and macroeconomic determinants of profitability for the banking sector of Pakistan. To incorporate the issues of endogeneity, unobserved heterogeneity, and profit persistence, we apply a generalised method of moments (GMM) technique under the Arellano–Bond framework to a panel of Pakistani banks that covers the period 2003–2017. The results of a dynamic panel data approach reveal that capital adequacy accelerates the profitability of the banking sector in Pakistan. Capital adequacy helps the financial system to absorb any negative shock by reducing the number of bank failures and losses. Conversely, our empirical investigation reveals that the liquidity ratio, business mix indicators, interest rates, and industrial production deteriorates the bank profitability. Liquidity risks enhance the probability of default risks and transmit into the unpaid loans and hence the lower return. Our empirical evidence further reveals that Pakistani banks are not getting any benefit of the economies of scale in terms of financial performance.

Factors Building Customers Loyalty to Russian Commercial Banks

2018 ◽  
Vol 2018 (5) ◽  
pp. 134-148
Author(s):  
Svetlana Vasilyeva
Keyword(s):  
Comparative Analysis ◽  
Interest Rates ◽  
Customer Loyalty ◽  
Commercial Banks ◽  
Banking Sector ◽  
Positive Influence ◽  
Main Factors ◽  
And Control ◽  
Positive Effect ◽  
Trend Reversal

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.

scholarly journals The Impact of Bank Specific and Macro-Economic Factors on Non-Performing Loans in the Banking Sector: Evidence from an Emerging Economy

2021 ◽  
Vol 14 (5) ◽  
pp. 217
Author(s):  
Shakeel Ahmed ◽  
M. Ejaz Majeed ◽  
Eleftherios Thalassinos ◽  
Yannis Thalassinos
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Emerging Economy ◽  
Operating Efficiency ◽  
Loan Loss ◽  
Policy Makers ◽  
Loan Loss Provision ◽  
Developed Markets ◽  
Net Interest Margin ◽  
The Impact

The current study examines macro-economic and bank specific determinants of non-performing loans (NPLs) for commercial banks from 2008–2018. The Pakistani banking sector has observed a significant increase in NPLs. In addition, the current study is undertaken to fill this gap in the literature as most of the prior studies focus on the developed markets. In the current study, we prefer the system GMM estimator. Its reliability depends on the validity of the instruments. To testing the second-order serial correlation, we apply the J test for testing the validity of the instruments and the Arellano–Bond AR (2) test. Using dynamic-GMM estimations, we find that credit growth, net interest margin, loan loss provision, and bank diversification significantly increase NPLs, while operating efficiency, bank size, and ROA lower NPLs. In addition, higher interest rates, exchange rates, and political risk significantly increase NPLs, while GDP growth decreases NPLs. This paper provides a timely insight to management and policy makers about the determinants of NPLs. The findings help management to take corrective actions and policy makers may take into consideration the significance of macro-economic conditions while formulating policy regarding NPLs. Likewise, the study provides insight to potential investors to consider the findings while selecting better investment opportunity. The current study is the first of its kind focusing on the link among bank specific, macroeconomic variables, and non-performing loans within the specific context of an emerging economy, Pakistan.

scholarly journals Comparative Analysis of Banking System Profitability in Western Balkan Countries

2019 ◽  
Vol 2 (2) ◽  
pp. p33 ◽  
Author(s):  
Qazim Tmava ◽  
Fahredin Berisha ◽  
Milaim Mehmeti
Keyword(s):  
Comparative Analysis ◽  
Interest Rates ◽  
Commercial Banks ◽  
Direct Investment ◽  
Banking Sector ◽  
Banking System ◽  
Return On Assets ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Balkan Countries

The aim of this paper is to analyze the profitability of the banking sector in the Western Balkan countries. (Note 1) This paper reviews return on assets (ROA) as an indicator of profit and return on equity (ROE) as an indicator of profitability in the banking systems of the respective countries, as well as some other macroeconomic variables that influence them. The main objective of this study is to identify the specific and macroeconomic variables of this industry, that have an impact on the profitability of commercial banks operating in the Western Balkan countries during the 2008-2015 period. Specifically, this paper addresses external indicators (gross domestic product, remittances, foreign direct investment, unemployment), and industry and bank specific indicators (assets, loans, loan-to-deposit ratio, non performing loans and interest rates) that affect the profitability of the banking system in respective countries. Therefore, according to the data generated during the research and the literature review, the profitability of banks measured by the ROA and ROE indicators, regarding the analyzed countries, turns out to be extremely low, especially compared to EU countries where they strive.

scholarly journals The Investment and Net Interest Margin: Case Study Commercial Banks in Kosovo

2016 ◽  
Vol 1 (2) ◽  
pp. 117
Author(s):  
Fidane Spahija
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Developed Countries ◽  
Economic Sectors ◽  
Net Interest Margin ◽  
Foreign Governments ◽  
The Interest Rate ◽  
Interest Margin

In Kosovo, but in all developing countries, the foreign investment is the locomotive of the country that considered as the most important economic sectors. In general it can be concluded that most of the investment originates from developed countries and that these investments return to these places. Origin of investments in Kosovo mainly comes from countries such as Austria, Germany, Slovenia, Great Britain, Switzerland, Turkey, the Netherlands, Albania, Serbia, USA, France, Macedonia, Croatia, Cyprus, Norway, Italy, Greece etc. The banking sector in Kosovo has been very attractive to the foreign investors. A total of nine commercial banks, seven are foreign owned. Foreign investments are primarily generated as investments in shares of foreign shareholders from different countries of the world. Investments in securities have increased by the banking sector in 2014. With the change of the interest rate it has also changed net interest margin of the banking sector. Interest on loans and deposits has continued to decline. Especially interest rates on deposits in 2014 have fallen to 1. 1%. This linked to the investment bank in securities of our government as the initiator in this area but cannot be denied to the investment of foreign governments. With the decrease of credit interest rate will be the development of sustainable economic growth and boost investment.

Concentration in the banking sector and housing lending in Russian regions

2020 ◽  
pp. 107-128 ◽  
Author(s):  
Anna V. Mishura ◽  
Svetlana V. Bekareva ◽  
Ekaterina N. Meltenisova
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Concentration Level ◽  
Mortgage Market ◽  
Russian Regions ◽  
High Concentration ◽  
Loan Markets ◽  
Regions Of Russia

The article examines the global and Russian experience in analyzing the influence of concentration and competition on the functioning of the banking sector, including the mortgage market. The information on housing loans issued by banks in the regions of Russia is used and the level of concentration in the regional housing lending markets is estimated. It is shown that regional housing loan markets are highly concentrated. It has been revealed that the concentration level negatively affects the dynamics of housing lending in the regions of the country. High concentration is also associated with slightly higher lending interest rates and their smaller spread. This may be the evidence that high concentration hinders the development of lending in the regions of Russia, which means that the level of competition in the banking sector is insufficient.

Net Interest Margins of Banks in India

2019 ◽  
Vol 13 (2) ◽  
pp. 192-207
Author(s):  
S. S. Barik ◽  
Nishita Raje
Keyword(s):  
Banking Sector ◽  
Positive Influence ◽  
Jel Classification ◽  
Operating Costs ◽  
System Level ◽  
Net Interest Margin ◽  
Main Determinants ◽  
Indian Banks ◽  
Asset Quality ◽  
The Impact

Net interest margin (NIM) is the raison d’être of banking. It is an important measure of efficacy of the banking sector. At the system level, it is indicative of the cost of financial intermediation, health of the banking sector and its pricing power. In recent years, the Indian banking sector has experienced a major metamorphosis, with increasing competition and changing norms of liquidity, income recognition and capital. The end of regulatory forbearance and asset quality review (AQR) unearthed significant non-performing assets. This article traces the influence of various factors on the NIM, using bank-level data for 42 Indian banks over 25 quarters from March 2011 to March 2017. The study employs a dynamic panel generalised method of moments (GMM) framework to trace the impact of three distinct set of factors in setting banks’ NIMs: bank-level factors (like the share of low interest-bearing deposits held, the extent of gross non-performing assets [GNPAs], the capital-to-risk weighted assets ratio [CRAR], size of the loan book, operating costs and lending rates); system-level factors such as the monetary policy rate, credit growth and yields on government securities and macro-variables such as GDP growth and inflation. The results indicate that the main determinants of NIMs are banks’ CRAR levels, the proportion of current account and savings account deposits (CASA) to total deposits, operating costs and size of the loan book. Macro-factors like the growth of the economy and repo rate have a positive influence on the NIM. JEL Classification: C23, E43, G21

REAL CONDITION AND PROSPECTS OF DEVELOPMENT OF THE RADAR STATIONS OF THE COUNTER BATTERY FIGHTINGV

2019 ◽  
Vol 1 (12) ◽  
pp. 30-40
Author(s):  
V. Нolovan ◽  
V. Gerasimov ◽  
А. Нolovan ◽  
N. Maslich
Keyword(s):  
Comparative Analysis ◽  
Real Time ◽  
Weather Conditions ◽  
Time Of Day ◽  
Current Position ◽  
Real Condition ◽  
Leading Role ◽  
Artillery Shell

Fighting in the Donbas, which has been going on for more than five years, shows that a skillful counter-battery fight is an important factor in achieving success in wars of this kind. Especially in conditions where for the known reasons the use of combat aviation is minimized. With the development of technical warfare, the task of servicing the counter-battery fight began to rely on radar stations (radar) to reconnaissance the positions of artillery, which in modern terms are called counter-battery radar. The principle of counter-battery radar is based on the detection of a target (artillery shell, mortar mine or rocket) in flight at an earlier stage and making several measurements of the coordinates of the current position of the ammunition. According to these data, the trajectory of the projectile's flight is calculated and, on the basis of its prolongation and extrapolation of measurements, the probable coordinates of the artillery, as well as the places of ammunition falling, are determined. In addition, the technical capabilities of radars of this class allow you to recognize the types and caliber of artillery systems, as well as to adjust the fire of your artillery. The main advantages of these radars are:  mobility (transportability);  inspection of large tracts of terrain over long distances;  the ability to obtain target's data in near real-time;  independence from time of day and weather conditions;  relatively high fighting efficiency. The purpose of the article is to determine the leading role and place of the counter-battery radar among other artillery instrumental reconnaissance tools, to compare the combat capabilities of modern counter-battery radars, armed with Ukrainian troops and some leading countries (USA, China, Russia), and are being developed and tested in Ukraine. The method of achieving this goal is a comparative analysis of the features of construction and combat capabilities of modern models of counter-battery radar in Ukraine and in other countries. As a result of the conducted analysis, the directions of further improvement of the radar armament, increasing the capabilities of existing and promising counter-battery radar samples were determined.

Sign in / Sign up

Export Citation Format

Share Document