Effects of Specific Banking Factors on Credit Risk of Vietnam’s Commercial Banks

2015 ◽  
Vol 22 (02) ◽  
pp. 70-84
Author(s):  
Diep Nguyen Thi Ngoc ◽  
Kieu Nguyen Minh
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Statements ◽  
Individual Investors ◽  
Negative Effects ◽  
Income Ratio ◽  
Research Findings ◽  
Using Data ◽  
Loan Growth

Applying OLS approach, the paper aims at identifying specific banking factors which impact on credit risk of Vietnam’s comercial banks. Using data collected from financial statements of 32 Vietnam’s commercial banks in the years 2010–2013 and the application of OLS, three idendified factors comprise loan growth, size, and cost-income-ratio. Based on the research findings, several recommendations are proposed for individual investors, further contributing to prompt awareness of the factors with negative effects on credit risk and proper control of lending boom impacts.

scholarly journals Factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam

2021 ◽  
Vol 8 (2) ◽  
pp. 228-239
Author(s):  
Thanh Ngo ◽  
Vinh Le ◽  
Hai Le
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Commercial Banks ◽  
Nonlinear Effects ◽  
Financial Statements ◽  
Relative Importance ◽  
Bank Capital ◽  
Factors Affecting ◽  
Positive Effects ◽  
Loan Growth

This paper studies factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam. Data is collected from audited financial statements of 23 banks, and macroeconomic data from General Statistics Office of Vietnam in the period of 2009 – 2019. This paper uses GMM method which is carried out by using R programing language in Jupyter Notebook. The findings show that lagged credit risk, profitability and inflation have positive effects on credit risk, while bank capital, bank size, economic growth and loans to deposits ratio have negative ones. In addition, the findings also show that the nonlinear effects of loan growth on credit risk with U shape relationship, and this paper also calculates the relative importance of each variable.

Determinants of commercial bank loan and advance disbursement: the case of private Ethiopian commercial banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tekeste Birhanu ◽  
Sewunet Bosho Deressa ◽  
Hossein Azadi ◽  
Ants-Hannes Viira ◽  
Steven Van Passel ◽  
...  
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Bank Loans ◽  
Bank Loan ◽  
Portfolio Investment ◽  
Negative Effects ◽  
Content Type ◽  
Lending Rate

PurposeThis paper aimed to investigate the determinants of loans and advances from commercial banks in the case of Ethiopian private commercial banks.Design/methodology/approachThe study randomly selected seven commercial banks to represent the population stratified on their asset, deposit and paid-up capital amounts. The study utilized an unbalanced panel data model as each bank started operation at a different period of time and considered the period 1995–2016 for secondary details.FindingsThe findings showed that the deposit size, credit risk, portfolio investment, average lending rate, real gross domestic product (GDP) and inflation rate had significant and optimistic effects on the lending and advancement of private commercial banks. On the contrary, liquidity ratio had significant and negative effects on private commercial bank loans and advances. Finally, the study forwarded a feasible recommendation for concerned organs to focus on deposit size, credit risk, portfolio investment, average lending rate, real GDP, inflation rate and liquidity ratio. The results of this study will help banking industry policymakers and planners understand how to minimize inflation and unemployment by improving development and sustainable economic growth.Originality/valueThe findings of this study can also affect the general attitudes of a society by increasing knowledge and improve the quality of life for the general public.

scholarly journals ANALISIS TINGKAT KESEHATAN BANK DAN POTENSI FINANCIAL DISTRESS MENGGUNAKAN METODE RGEC DAN ZMIJEWSKI PADA BANK BNI SYARIAH TAHUN 2015-2019

2021 ◽  
Vol 8 (5) ◽  
pp. 570
Author(s):  
Muhammad Iqbal Surya Pratikto ◽  
Mohammad Khoiruzi Afiq
Keyword(s):  
Financial Distress ◽  
Commercial Banks ◽  
Research Method ◽  
Quantitative Methods ◽  
Financial Statements ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Negative Effects ◽  
Business Units ◽  
Strategic Role

ABSTRAKPerkembangan perbankan syariah yang sangat pesat telah membuat bank syariah memiliki peran strategis dalam roda perekonomian. Hal ini ditandai dengan semakin besarnya jumlah Bank Umum Syariah (BUS) dan Unit Usaha Syariah (UUS) yang saat ini mencapai 34 dengan 828 KPO/KC (Kantor Pusat Operasional/Kantor Cabang), 1.440 KCP/UPS (Kantor Cabang Pembantu/Unit Pelayanan Syariah) dan 544 KK (Kantor Kas). Penilaian tingkat kesehatan perbankan sangatlah penting, tidak hanya untuk internal perusahaan, melainkan investor, pemerintah bahkan masyarakat. Penilaian tersebut juga dapat digunakan sebagai upaya untuk menilai kinerja dan mendeteksi terjadinya potensi kebangkrutan. BNI Syariah merupakan perbankan syariah yang menduduki peringkat keempat dengan kategori kapitalisasi pasar sebagai bank syariah terbesar di Indonesia. Penelitian ini bertujuan untuk mengetahui tingkat kesehatan dan potensi financial distress pada BNI Syariah periode 2015-2020 menggunakan metode RGEC dan Zmijewski. Metode penelitian ini menggunakan metode kuantitatif deskriptif. Objek penelitian ini adalah laporan keuangan BNI Syariah tahun 2015-2020. Hasil penelitian ini menunjukkan bahwa tingkat kesehatan BNI Syariah tahun 2015-2020 menggunakan metode RGEC dan Zmijewski mendapatkan predikat sangat sehat dan stabil atau tidak berpotensi mengalami financial distress. Sehingga kinerja BNI Syariah dapat dikatakan sangat baik dalam menghadapi pengaruh negatif dari fluktuasi bisnis.Kata Kunci: Kesehatan Bank, Financial Distress, Metode RGEC, Metode Zmijewsk ABSTRACTThe development of Islamic banking is very fast and has made Islamic banks have a strategic role in the wheels of the economy. This is indicated by the increasing number of Sharia Commercial Banks (BUS) and Sharia Business Units (UUS) which currently reach 34 with 828 KPO / KC (Operational Headquarters / Branch Offices), 1,440 KCP / UPS (Sub-Branch Offices / Service Units). Sharia) and 544 KK (Cash Office). Assessment of the soundness of banking is very important, not only for internal companies, but for investors, government and even the community. This assessment can also be used as an effort to assess performance and detect potential bankruptcies. BNI Syariah is a sharia banking which is ranked fourth in the market capitalization category as the largest sharia bank in Indonesia. This study aims to determine the level of health and potential financial distress in BNI Syariah for the 2015-2020 period using the RGEC and Zmijewski methods. This research method uses descriptive quantitative methods. The object of this research is the 2015-2020 BNI Syariah financial statements. The results of this study indicate that the health level of BNI Syariah in 2015-2020 using the RGEC and Zmijewski methods gets the predicate very healthy and stable or does not have the potential to experience financial distress. So that the performance of BNI Syariah can be said to be very good in facing the negative effects of business fluctuations.Keywords: Bank Health, Financial Distress, RGEC Method, Zmijewsk Method

scholarly journals Effect of Credit Risk Management on Financial Performance Of Nepalese Commercial Banks

2022 ◽  
Vol 10 (1) ◽  
pp. 19-30
Author(s):  
Dr. Guna Raj Chhetri
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Negative Effects ◽  
Management Quality ◽  
Capital Adequacy Ratio

The main purpose of this study is to investigate the effect of credit risk on the financial performance of commercial banks in Nepal. The panel data of seventeen commercial banks with 85 observations for the period of 2015 to 2020 have been analyzed. The regression model revealed that non – performing loan (NPLR) has negative and statistically significant impact on financial performance (ROA).Capital adequacy ratio (CAR) and bank size (BS) have negative and statistically no significant impact on financial performance (ROA). Credit to deposit (CDR) has positive but no significant relationship with the financial performance (ROA) and the study concluded that the management quality ratio (MQR) has positive and significant relationship with the financial performance (ROA) of the commercial banks in Nepal. The study recommends that, it is fundamental for Nepalese commercial banks to practice scientific credit risk management, improve their efficacy in credit analysis and loan management to secure as much as possible their assets, and minimize the high incidence of non-performing loans and their negative effects on financial performance.

scholarly journals The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

2021 ◽  
Vol 36 (2) ◽  
pp. 93-123
Author(s):  
Pananda Pasaribu ◽  
Bonnie Mindosa
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Research Methods ◽  
Commercial Banks ◽  
Comprehensive Analysis ◽  
Bank Loans ◽  
Bank Stability ◽  
Small Banks ◽  
Loan Growth

Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.

scholarly journals ANALISA PENGARUH PERTUMBUHAN KREDIT, JENIS KREDIT, TINGKAT BUNGA PINJAMAN BANK DAN INFLASI TERHADAP KREDIT BERMASALAH

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Arfan Rachmadias Saputro ◽  
Susi Sarumpaet ◽  
Tri Joko Prasetyo
Keyword(s):  
Multiple Regression ◽  
Commercial Banks ◽  
Sampling Method ◽  
Financial Statements ◽  
Total Sample ◽  
Linear Analysis ◽  
The Other ◽  
Negative Effect ◽  
Loan Growth ◽  
Positive Effect

Abstract: This research was conducted to analyze the effect of loan growth, loan type, interest and inflation on non-performing loan. Samples were focused on Indonesian commercial banks. Multiple regression linear analysis was used, whereas the samples were obtained using purposive sampling method. Total sample consists of 82 commercial banks with financial statements for the year of 2013 to 2017. Result shows that each variable; loan growth, loan type and interest have a positive effect on non-performing loan. On the other hand, inflation has a negative effect. Keywords: Loan Growth, Loan Type, Interest, Inflation, Non-Performing Loan.

scholarly journals The Impact of Credit Diversification on Credit Risk and Performance of Indonesian Banks

2020 ◽  
Vol 8 (1) ◽  
pp. 013
Author(s):  
Iin Emy Prastiwi ◽  
Anik Anik
Keyword(s):  
Linear Regression ◽  
Credit Risk ◽  
Multiple Linear Regression ◽  
Commercial Banks ◽  
Financial Statements ◽  
Company Size ◽  
Economic Sector ◽  
Negative Effect ◽  
And Performance ◽  
The Impact

This study aims to identify the effect of credit diversification in the economic sector on credit risk and performance of commercial banks in Indonesia. Multiple linear regression is used to determine the effect of credit diversification on credit risk and banking performance. The data used in this study is the aggregated financial statements of commercial banks inIndonesia during the 2015-2018. The results indicate that credit diversification based on the economic sector has a significant effect on increasing the profitability of commercial banks in Indonesia. The credit diversification based on the economic sector also has a significant effect in reducing credit risk. Two control variables, namely company size and banking liquidity have a significant negative effect on profitability respectively. In the case of credit risk, the company size hasapositive effect, while the banking liquidity has no effect. These findings support the traditional banking theory which states that banks that diversify their credit portfolios can reduce the credit risk and increase profitability.

scholarly journals Determinants of Local Commercial Banks' Performance in Malaysia

2018 ◽  
Vol 7 (3.21) ◽  
pp. 457
Author(s):  
Lee Wee Jeng ◽  
Suganthi Ramasamy ◽  
Devinaga Rasiah ◽  
Peter Yuen Yee Yen ◽  
Shalini Devi Pillay
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Inflation Rate ◽  
Liquidity Risk ◽  
Asset Return ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Using Data

Commercial banks play an important role in developing a country’s economy and maintaining its financial stability. Commercial banks will usually receive deposits from customers and lend out the money to people who need the money for their businesses or other legal purposes. Therefore, their performance is extremely important for a country’s financial stability and economic growth. This research examined the determinants of local commercial banks’ performance in Malaysia. Performance was measured using Return on Asset, Return on Equity and Net Interest Margin. Using data from eight local commercial banks in Malaysia from tea 2006 to year 2015, this study found that credit risk, liquidity risk, bank’s size and inflation rate significantly affect banks’ performance.  

Transactive memory systems and team innovation

2014 ◽  
Vol 20 (5/6) ◽  
pp. 262-272 ◽  
Author(s):  
Vesa Peltokorpi ◽  
Mervi Hasu
Keyword(s):  
Memory Systems ◽  
Transactive Memory ◽  
Negative Effects ◽  
Transactive Memory Systems ◽  
Team Processes ◽  
Research Teams ◽  
Content Type ◽  
Team Innovation ◽  
Research Findings ◽  
Using Data

Purpose – The purpose of this paper is to hypothesize a curvilinear relation between transactive memory systems (TMS) and team innovation by integrating diverging conceptual and research findings in TMS research. While increasingly argued to enhance team innovation, TMS also have negative effects on team processes and outcomes. Design/methodology/approach – The authors tested the hypothesis through hierarchical linear regression analyses using data obtained from 124 technical research teams. Findings – Logistic regressions support the hypothesis, showing an inverse U-shaped relationship between TMS and team innovation, measured by patents received. Research limitations/implications – The average within team response rate was relatively low, and the findings are driven by a limited number of teams with patents. Practical implications – The findings suggest that research teams with moderate levels of TMS are the most effective in terms of patents received. Originality/value – To the best of the authors’ knowledge, this is the first empirical study to link TMS to team innovation and to test the potential counterproductive effects of TMS on team innovation.

scholarly journals Influence of Bank Health Ratio on Financial Performance of Islamic Commercial Bank

2018 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Edi Komara
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
Health Ratio

This study aims to analyse the influence of bank health ratios on the financial performance of Islamic Commercial Banks using the ratio of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) ratio, Operating Expenses Operating Income ratio (OEOI), against Islamic Commercial Bank’s profitability represented by Return on Asset ratio (ROA). The population used in this study is the financial statements of Islamic Commercial Banks period 2015 until 2017. Types of quantitative data with library data collection techniques, and documentation. Technical analysis of data using multiple linear regression analysis with the help of SPSS 20 program. The results showed that health variables (CAR, LDR, and OEOI) simultaneously affect the Financial Performance of Islamic Commercial Banks. Partially CAR has no significant effect on ROA, LDR has no significant effect on ROA. The effect of OEOI on ROA is partial.

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