scholarly journals The impact of liquidity risk management on the performance of Albanian Commercial Banks during the period 2005-2015

2016 ◽  
Vol 3 (1) ◽  
pp. 70-70 ◽  
Author(s):  
Sokol Ndoka ◽  
Manjola Islami ◽  
Joana Shima
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Liquidity Risk ◽  
The Impact

Foreign Ownership and Liquidity Risk of Commercial Banks in Vietnam

2017 ◽  
Vol 33 (3) ◽  
Author(s):  
Vo Xuan Vinh ◽  
Mai Xuan Duc
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Panel Data ◽  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Foreign Ownership ◽  
The Impact

This paper investigates the impact of foreign ownership on liquidity risk of commercial banks in Vietnam during the period 2009-2015. The regression analysis of panel data is used in the paper with the data collected from 35 Vietnamese commercial banks. The results show that higher foreign ownership is associated with lower liquidity risk of banks. In addition, credit risk and liquidity risk in previous year have a positive relationship with liquidity risk of banks in current year. The results of the study provide empirical evidence to support the important role of foreign ownership in liquidity risk management and other operations of commercial banks in Vietnam.

scholarly journals Sensitivity of Czech Commercial Banks to a Run on Banks

2015 ◽  
Vol 6 (2) ◽  
pp. 91-107
Author(s):  
Pavla Klepková Vodová
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Time Lag ◽  
Liquidity Risk ◽  
Significant Part ◽  
Withdrawal Rate ◽  
Bank Run ◽  
The Impact

Abstract The aim of this paper is to thoroughly evaluate the sensitivity of Czech commercial banks to a run on banks. Our sample includes a significant part of the Czech banking sector in the period 2006-2013. We use three liquidity ratios that we stress via a stress scenario simulating a run on banks accompanied by a 20% withdrawal rate of deposits.We measure the impact of the scenario by the relative changes of these ratios. The results show that, in spite of a decrease in liquidity, most Czech banks would be able to finance such a scenario. The financial crisis influenced bank sensitivity to a run, but with a significant time lag. The severity of the impact of the bank run increases with the size of the bank; large banks are the most vulnerable. The resilience of banks is also determined by their strategy for liquidity risk management.

scholarly journals Implementation of Basel II and Profitability of Banks in Pakistan

2019 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Muhammad Ramzan Sajid ◽  
◽  
Hassan Mujtaba Nawaz Saleem ◽  
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Regression Model ◽  
Commercial Banks ◽  
Random Effect ◽  
Liquidity Risk ◽  
Basel Ii ◽  
Annual Reports ◽  
Bank Profitability ◽  
The Impact

This study examines the impact of credit risk and liquidity risk on the profitability of the banks in Pakistan before and after the implementation of the Basel II policy in Pakistani Banks. For this purpose, five private commercial banks of Pakistan selected as the sample of our study. The balanced panel data of these banks for ten years (2006-2015) is used to analyze the model. The data is collected from the annual reports of the selected banks. The impact of pre and post-Basel-II policy implementation is also measured using four years (2006-2009) as pre-Basel-II and six years (2010-2015) as post-Basel-II to compare the impact of Basel-II implementation in the banks. The regression model estimation technique is used, which is selected based on the unit root test. The fixed effect and random effect models are used based on the Hausman test to estimate profitability determinants. The models are applied in three phases as the whole period, pre-Basel-II, and post-Basel-II implementation period. Further studies could be developed by adding more variables to the regression model to check their impact on bank profitability. The sample size can be increased to all commercial banks, and further, this study can also be discussed in Islamic banking and microfinance institutions. Further, the dependent variables could also be increased to enhance the results of bank profitability. The number of observations could be improved to describe the risk management more prudent than this. The study suggests that banks have to follow strategies that provide adequate diversification in credit risk and liquidity risk management to mitigate these risks and enhance the profitability. It is further recommended that adopting a sound risk management system and strong corporate governance will reduce the credit risk and liquidity risk and ultimately improve the profitability of banks in Pakistan.

scholarly journals Credit Management and Issues of Bad Debts: An Empirical Study of Listed Deposit Banks in Nigeria

2020 ◽  
pp. 32-49
Author(s):  
Peter E. Ayunku ◽  
Akwarandu Uzochukwu
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Random Effect ◽  
Credit Risk Management ◽  
Loan Loss ◽  
Data Set ◽  
Credit Management ◽  
Loan Loss Provision ◽  
The Impact

This study examines the impact of credit management on firm performance amidst bad debts, among Nigerian deposit banks. Five hypotheses were formulated following the dependent variables of Return on Asset and Tobin Q. The independent variables employed for this study include: Loan Loss Provision, Loan to Deposit Ratio, Equity to Asset Ratio, and Loan Write off. This study is based on ex-post facto research design and employed a panel data set collected from fourteen (14) commercial banks over six years ranging from 2014 to 2019 financial year. We analyzed the data set using descriptive statistics, correlation and Ordinary Least Square Regression Technique. The random effect models established that non-performing loan, loan loss provision and equity to asset impact significantly on banks’ performance in both Return on Asset and Tobin-Q models. This suggests that the sampled banks need to establish efficient arrangements to deal with credit risk management. In all, credit risk management indicators considered in this research are important variables in explaining the profitability of Nigerian commercial banks. However, based on the outcome from the empirical analysis, the study carefully recommends that investors and shareholders in these banks should be aware of the possible use of provisions for losses on non-performing loans by managers for smoothening of profits. The shareholders specifically should be ready to meet optimal agency costs to reduce the manager's information asymmetry by hiring competent internal and external auditors.

scholarly journals The Effect of Risks on Banking Safety: Applied Study on Jordanian Traditional Banks (2005-2016)

2017 ◽  
Vol 9 (9) ◽  
pp. 102
Author(s):  
Mohammad Abdel Mohsen Al-Afeef ◽  
Atallah Hassan Al-Ta'ani
Keyword(s):  
Interest Rate ◽  
Credit Risk ◽  
Commercial Banks ◽  
Banking Sector ◽  
Liquidity Risk ◽  
Interest Rate Risk ◽  
Bank Credit ◽  
Applied Study ◽  
Rate Risk ◽  
The Impact

Banking sector is one of the most important sectors that support the sustainable economic development in Jordan, therefore this study aimed to test the impact of risks; (Liquidity risk, bank credit risk and interest rate risk) on the safety in the banking sector in the Jordanian commercial banks during the period 2005-2016.The results of the study showed that there is a statistically significant impact for each of liquidity risk and interest rate risk on the safety in the banking sector, and there isn't statistically significant impact for credit risk on the safety in the banking sector during the period of this study, and also find that the explanatory of model was 60.5%, which means that 39.5% due to other factors.

scholarly journals The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

2020 ◽  
Vol 13 (10) ◽  
pp. 228
Author(s):  
Hai Long Pham ◽  
Kevin James Daly
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Value At Risk ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Equation Modeling ◽  
Least Squares Regression ◽  
Basel Accord ◽  
The Impact

This paper is an attempt to empirically examine the impact of Basel Accord regulatory guidelines on the risk-based capital adequacy regulation and bank risk management of Vietnamese commercial banks. Our research aims to assess how Vietnamese commercial banks manage their capital ratio and bank risk under the latest Basel Accord capital adequacy ratio requirements. Building on previous studies, this research uses a simultaneous equation modeling (SiEM) with three-stage least squares regression (3SLS) to analyze the endogenous relationship between risk-based capital adequacy standards and bank risk management. A year dummy variable (dy2013) is included in the model to take account of changes in the regulation of the Vietnamese banking system. Furthermore, we add a value-at-risk variable developed by as an independent variable into equations of the empirical models. The results reveal a significant impact of Basel capital adequacy regulatory pressure on the risk-based capital adequacy standards and bank risk management of Vietnamese commercial banks. Moreover, banks under the latest Basel capital adequacy regulations are induced to reduce risks and increase banks’ financial performance.

scholarly journals Does competition only impact on insolvency risk? New evidence from the Chinese banking industry

2017 ◽  
Vol 13 (3) ◽  
pp. 332-354 ◽  
Author(s):  
Yong Tan ◽  
John Anchor
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Industry ◽  
Liquidity Risk ◽  
Empirical Literature ◽  
Content Type ◽  
Insolvency Risk ◽  
Chinese Banking Industry ◽  
The Impact ◽  
Chinese Banking

Purpose The purpose of this paper is to investigate the impact of competition on credit risk, liquidity risk, capital risk and insolvency risk in the Chinese banking industry during the period 2003-2013. Design/methodology/approach This study uses a generalized method of moments system estimator to examine the impact of competition on risk. In particular, translog specifications are used to measure the competition and insolvency risk. Findings The results show that greater competition within each bank ownership type (state-owned commercial banks, joint-stock commercial banks and city commercial banks) leads to higher credit risk, higher liquidity risk, higher capital risk, but lower insolvency risk. Originality/value This paper is the first piece of research testing the impact of competition on different types of risk in banking industry and it further contributes to the empirical literature by using a more accurate competition indicator (efficiency-adjusted Lerner index) and a more precise insolvency risk indicator (stability inefficiency).

scholarly journals The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks

2021 ◽  
Vol 11 (1) ◽  
pp. 67-75
Author(s):  
Ishaq Hacini ◽  
Abir Boulenfad ◽  
Khadra Dahou
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Control Variable ◽  
Liquidity Risk ◽  
Saudi Arabian ◽  
Return On Equity ◽  
Conventional Banks ◽  
The Impact

This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.

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