scholarly journals Measurement and analysis of factors that affecting the financial stability of private banks registered in the Iraq Stock Exchange for the period (2017-2013): قياس وتحليل العوامل المؤثرة في الاستقرار المالي للمصارف الأهلية المسجلة في سوق العراق للأوراق المالية للمدة (2013-2017)

2021 ◽  
Vol 5 (18) ◽  
pp. 176-161
Author(s):  
Rawaa Ahmad Yousif Rawaa Ahmad Yousif
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Financial Indicators ◽  
Linear Regression Models ◽  
Basel Committee ◽  
Private Banks ◽  
Banking Stability ◽  
The Stability ◽  
The Impact

The objective of this study was to measure the banking factors (capital adequacy, credit capacity, and revenue capacity) and to show their impact on the banking stability of the private banks registered in the Iraq Stock Exchange. Where the bank credit represents the most important source of bank money in terms of achieving profits and the most exposed to risks, which is reflected in the bank’s business and its financial indicators. Also, achieving ratio (adequacy of banking capital) corresponded with the guidelines of the Basel Committee for is one of the top concerns of the banking administration. Each of the (z_score) and multiple linear regression models were used to measure the stability of banks and calculated the impact of the study variables on financial stability. The research sample consisted of (6) private banks, these banks are apart of 44 private banks of registered in Iraq Stock Exchange which are operating in Iraq. The research reached to set of conclusions, including that achieving financial stability for banks depends mainly on strengthening the adequacy of capital and then its ability to achieve profits. Also, the research recommended that banks implement the decisions of the Basel Committee (first, second and third) that contribute to enhancing the financial stability of banks.

scholarly journals Effect of Capital Adequacy Ratio, Nonperporming Loan, Third Party Funds on Loan to Deposit Ratio in Private Commercial Banks in Indonesia Stock Exchange

2019 ◽  
Vol 13 (2) ◽  
pp. 153-164
Author(s):  
Nur Salma ◽  
Nur Salma
Keyword(s):  
Regression Analysis ◽  
Commercial Banks ◽  
Annual Report ◽  
Stock Exchange ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Third Party ◽  
Capital Adequacy Ratio ◽  
Private Banks ◽  
The Impact

The study aims to analyze the impact of capital adequacy ratio, non-performing loan,   third party fund on loan to deposit ratio of the private banks in Bandar Lampung. The sample used in this research were obtained from six private banks in Bandar Lampung.  Data obtained based on financial statements Annual Report of Indonesia stock Exchange (IDX) from 2009 to 2014.  The method used in this research is the dependent variable and independent, multiple regression analysis and Classical Assumption. Variable used Capital Adequacy Ratio (CAR), Nonperforming Loan (NPL), and Third-Party Fund (DPK) on Loan to Deposit Ratio (LDR). Based on the result of the research showed that the F variable CAR, NPL, and DPK together influential significantly to Loan to Deposit Ratio. The Result of partial T-test CAR negatively influential and significant with significant value is 0.007. NPL is not positively influential and not significant on LDR with significant value is 0,277 while DPK has positive influential and significant value is 0,005. The value of Adjusted R Square the value is 0.266 showed that LDR can explain by variables research as big as 26,6 %, while the rest can be explained by other factors.

Influence of internal and external risks on sustainability of financial system of Аltai krai

2018 ◽  
Vol 35 (4) ◽  
pp. 133-136
Author(s):  
R. N. Ibragimov
Keyword(s):  
Sustainable Development ◽  
Financial Stability ◽  
Management Strategy ◽  
Financial System ◽  
Risk Management Strategy ◽  
The Sustainable Development ◽  
The Stability ◽  
The Impact

The article examines the impact of internal and external risks on the stability of the financial system of the Altai Territory. Classification of internal and external risks of decline, affecting the sustainable development of the financial system, is presented. A risk management strategy is proposed that will allow monitoring of risks, thereby these measures will help reduce the loss of financial stability and ensure the long-term development of the economy of the region.

scholarly journals The Effect of Credit Derivatives on Financial Stability

2016 ◽  
Vol 1 (1) ◽  
pp. 22 ◽  
Author(s):  
Richard Van Ofwegen ◽  
Willem F.C. Verschoor ◽  
Remco C.J. Zwinkels
Keyword(s):  
Financial Stability ◽  
Credit Derivatives ◽  
Financial Sector ◽  
Financial Products ◽  
The Stability ◽  
The Impact

Due to the recent financial turmoil, questions have been raised about the impact ofcomplex financial products, like credit derivatives, on financial stability. The academicliterature however does not provide a clear answer to this question. This paper empiricallylinks the stability of the financial sector to the use of credit derivatives for the main constituentsof the European financial sector. We find that the use of credit derivatives increases theprobability of default and thus reduces the overall financial sector stability. In addition,we find evidence that this relationship is progressive and economically meaningful.

General Outlook on Financial Structure and Capital Adequacy of ISE-30 Companies during Economic Crisis (2008-2009)

2013 ◽  
pp. 1189-1205
Author(s):  
Deniz Umut Erhan ◽  
M. Uğur Akdoğan
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Capital Inflows ◽  
Smooth Transition ◽  
Balance Sheets ◽  
Structural Problems ◽  
Long Run ◽  
Financial Soundness ◽  
Difficult Challenge

In the simplest terms, economic crises could be recognised as abnormal fluctuations adversely impacting market conditions. Despite subsequent economic recoveries, markets and the financial system remain in a period of significant uncertainty after such crises. The baseline scenario is for balance sheets to strengthen gradually as the economy recovers and as progress is made in addressing structural problems in financial positions. However, substantial downside risks always remain for companies. Even companies with a high “Capital Adequacy Ratio” (CAR) face the difficult challenge of managing a smooth transition to self-sustaining growth while stabilising debt burdens under low and uncertain economic prospects. Without further bolstering of balances sheets, markets remain susceptible to funding shocks that could intensify deleveraging pressures and place further drag on public finances and recovery. Companies have proven resilient to economic turbulence but are vulnerable to a slowdown and face risks in managing sizable and potentially volatile capital inflows. Policy actions need to be intensified to contain risks, address debt burdens, and implement effective and institutional frameworks to ensure financial stability. Based on this perspective and through applying the financial soundness indicators methodology, the financial structures and soundness indicators of the top 30 companies on the Istanbul Stock Exchange (ISE-30) are subjected to an assessment for determining the impact of the global crisis. The short- and long-run credits and non-monetary debit lines of ISE-30 companies are investigated together with the momentum of growth in assets, liabilities, and cash-flow stabilities. The financial soundness of ISE-30 companies is discussed in terms of the “capital-liabilities ratios” performance measure. Finally, the study focuses on long-run economic impacts and the analysis assumes that companies should transition to new levels of capital and liquidity to strengthen their financial stability and sustainability.

scholarly journals Analysis of sensitivity of a company's financial sustainability to random factors

2020 ◽  
Vol 210 ◽  
pp. 13002
Author(s):  
Ilona Avlasenko ◽  
Lyudmila Avlasenko ◽  
Isa Peshkhoev ◽  
Yuri Podkolzin ◽  
Oksana Savelyeva
Keyword(s):  
Financial Stability ◽  
Unstable State ◽  
Financial Indicators ◽  
Financial Condition ◽  
Distribution Parameters ◽  
Normal Stability ◽  
Normal Law ◽  
The Impact ◽  
Enterprise Activity

In this article the problem of influence of accidental changes of financial indicators of enterprise activity (equity, long-term/short-term borrowed capital, reserves and costs, etc.) caused by uncertainty of market conditions on values of indicators of financial stability is considered. The study is conducted on the basis of the assumption that the studied financial indicators of the enterprise are random values with a normal law of distribution. To estimate the distribution parameters of these random values, statistical data on the values of the financial indicators of the enterprise for previous years are used. Following estimates of probabilities of financial stability levels were built: absolute stability, normal stability, unstable state and crisis financial state. With the help of statistical modeling, numerical experiments were conducted in order to determine the level of financial condition and conclusions were formulated on the impact on the financial condition of the enterprise of the parameters of the distribution of probabilities of random variables - indicators of the financial and economic activity of the enterprise.

Bank risk, profit efficiency and profitability in a frontier market

2020 ◽  
Vol 36 (4) ◽  
pp. 381-402
Author(s):  
King Carl Tornam Duho ◽  
Joseph Mensah Onumah ◽  
Raymond Agbesi Owodo ◽  
Emmanuel Tetteh Asare ◽  
Regina Mensah Onumah
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Efficiency Score ◽  
Policy Formulation ◽  
Profit Efficiency ◽  
Content Type ◽  
Return On Equity ◽  
Insolvency Risk ◽  
Asset Turnover ◽  
The Impact

PurposeThe study examines the impact of risk on the profit efficiency and profitability of banks in Ghana.Design/methodology/approachData envelopment analysis was used to estimate profit efficiency scores and accounting ratios were used to measure profitability. The panel corrected standard error regression was used to assess the nexus using a dataset of 32 banks from 2000 to 2015.FindingsThe paper found that the Ghanaian banking industry exhibits a variable return to scale property, suggesting that average costs change with output size. Profit efficiency score for banks closer to the efficiency frontier is 61%. Credit risk is significant in enhancing profit efficiency and return on equity. Market risk is relevant in improving profit efficiency, return on asset and asset turnover. To drive profitability, bank managers have to be committed to effective liquidity risk, insolvency risk and capital risk management. Operational risk reduces shareholders' returns. The impact of size, age, stock exchange listing, cost efficiency and competition have are all been discussed extensively.Practical implicationsThe findings contribute to the knowledge on the risk-performance nexus and provide information that is valuable to academics, bankers and regulators for policy formulation. The findings are relevant to the newly established Financial Stability Council.Originality/valueThis paper appears to be among the premier attempts to examine the effect of various risk types identified in the Basel III framework on bank performance in Africa.

scholarly journals Capital adequacy ratio and a bank’s financial stability in Vietnam

2021 ◽  
Vol 16 (4) ◽  
pp. 61-71
Author(s):  
Nguyen Minh Sang
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Generalized Method Of Moments ◽  
Capital Adequacy ◽  
Policy Implications ◽  
Ho Chi Minh City ◽  
Loan Loss ◽  
Control Variables ◽  
Capital Adequacy Ratio ◽  
The Impact

The objective of this study is to provide more empirical evidence on the impact of the capital adequacy ratio, as well as control and micro variables, on the financial stability of commercial banks in emerging markets such as Vietnam. The study analyzes the impact of the capital adequacy ratio on the financial stability of 18 Vietnamese commercial banks in the period 2010–2020 using the Generalized method of moments (GMM) model. Empirical research results show that the capital adequacy ratio has a positive correlation with the financial stability of Vietnamese commercial banks during the study period. Besides, the study also uses control variables such as Profitability through ROA and ROE, Bank Size (SIZE), Loans to Assets Ratio (LTA), Deposits to Assets Ratio (DTA), and Loan Loss Ratio (LLR), to analyze their impact on the financial stability of Vietnamese commercial banks. Based on the above results, the study proposes some policy implications to enhance the financial stability of Vietnamese commercial banks using the capital adequacy ratio and the control variables from the GMM model that are statistically significant. The paper also pointed out four limitations of the study in terms of data, research samples, methods and research models, so that further research can be more complete. AcknowledgmentThe author wishes to acknowledge support from the Banking University of Ho Chi Minh City. This research was made possible thanks to all valuable support from relevant stakeholders.

scholarly journals Analysis of financial indicators used to assess the sustainability of companies

2020 ◽  
Vol 208 ◽  
pp. 03049
Author(s):  
Temirkhan Mukhambetov ◽  
Farida Yerdavletova ◽  
Karlygash Kurbanova ◽  
Zhanar Mukhametzhanova ◽  
Kamilla Sadvakassova
Keyword(s):  
Comparative Analysis ◽  
Financial Stability ◽  
Analytical Approach ◽  
Expert Assessment ◽  
Financial Indicators ◽  
Large Share ◽  
Scientific Methods ◽  
General Scientific ◽  
The Stability

The authors present a methodology for using financial indicators to assess the value of companies. The article is dedicated to a comprehensive research of EBITDA. As a research objective, the authors identified an attempt to solve the problem of companies’comparability with identical proportions of financial results, the possibility of identifying the most financially stable companies. Based on the analysis of various interpretations, applying of this indicator in different directions is considered. As a component of various coefficients that characterize the company’s financial stability, it’s recommended to use the EBITDA indicator. The behooves and opportunities that open up when using it are revealed. The research shows to the need to apply this indicator, because this coefficient is able to more fully reveal the stability of the company, by increasing the amount of real profit, the amount of which is limited due to the presence of a large share of non-cash expenses in companies. In the process of research, such general scientific methods as monitoring, comparison, description, systematic and analytical approach, comparative analysis, scientific abstraction, expert assessment, analysis of reasons and consequences were used.

scholarly journals The Effect Of Capital Adequacy Ratio On Return On Assets With Problem Credit Ratio Moderation

2020 ◽  
Vol 1 (3) ◽  
pp. 145-151
Author(s):  
Deni Sunaryo
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Foreign Exchange ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Simple Linear Regression ◽  
Return On Assets ◽  
Analysis Technique ◽  
Capital Adequacy Ratio ◽  
Private Banks

The study aims to determine the effect of Capital Adequacy Ratio on Return On Asset with the moderatiom of Non Performing Loan sub sector of national foreign exchange private banks listed on the indonesian stock exchange (IDX) in 2014-2018 with a population of 22 banks. The analysis technique used are simple Linear Regression and Moderated Regression Analysis (MRA). The result showed that the  Capital Adequacy Ratio has a positive and significant effect on Return On Asset. While the Capital Adequacy Ratio of Non Performing Loan is not able to moderate the Capital Adequacy Ratio with Return On Asset.

scholarly journals Environmental issues as a non-financial reporting area using the example of selected companies listed on the Warsaw Stock Exchange

2020 ◽  
Vol 64 (9) ◽  
pp. 45-56
Author(s):  
Hanna Czaja-Cieszyńska
Keyword(s):  
Financial Reporting ◽  
Raw Materials ◽  
Stock Exchange ◽  
Secondary Data ◽  
Environmental Issues ◽  
Financial Indicators ◽  
Financial Reports ◽  
Warsaw Stock Exchange ◽  
Financial Disclosures ◽  
The Impact

The purpose of this article is to assess the comparability of non-financial disclosures on the impact of economic activity on the natural environment in reports of selected companies listed on the Warsaw Stock Exchange. The ten largest listed companies listed in the WIG-20 index were selected for the study. The analysis of the reports was based on the following disclosure categories: Materials and raw materials, Fuels and energy, Water, Biodiversity, Emissions to the atmosphere, Waste and Effluents, and Others. Within these categories, 14 key environmental non-financial indicators were defined. The empirical study carried out confirmed that the non-financial reports analyzed in all of the seven categories of disclosures were not fully comparable. The research methods used were: literature studies, analysis of legal regulations, analysis of secondary data, as well as methods of induction and synthesis.

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