scholarly journals Financial Health Soundness Measurement of Private Commercial Banks in Bangladesh: An Observation of Selected Banks

2016 ◽  
Vol 9 (1) ◽  
pp. 20-36 ◽  
Author(s):  
Mohammad Main Uddin ◽  
Abdul Kaium Masud
Keyword(s):  
International Business ◽  
Commercial Banks ◽  
Banking Sector ◽  
Vital Role ◽  
Economic Conditions ◽  
Financial Indicators ◽  
Financial Health ◽  
Business Studies ◽  
Private Banks ◽  
Financial Soundness

The financial sector is one of the most significant sectors for any country, especially if a country is a developing in nature. In such an environment, banking sector plays the vital role to strengthen the economic conditions. Economic growth and international business is increasing in Bangladesh and private commercial banks especially private sectors play the major roles. Thus it becomes important to measure the financial soundness of the private banks in order to judge their respective position. The study was conducted to measure the financial soundness of selected private commercial banks of Bangladesh for the period 2006-2010. In this paper, an attempt was made to analyze the financial soundness of selected banks using different statistical tools and financial indicators. The study reveals that different financial indicators showed upward trends during the period 2006   to 2010. The study also made a rank of the selected commercial banks based on financial indicators. It was found that a bank with higher deposits, loans & advances, investments, branches, employees does not always mean that has better profitability performance. The study also recommends measures that could be adopted by banks to ensure soundness in their operation.Journal of Nepalese Business Studies Vol. 9, No. 1, 2015 pp. 20-36

scholarly journals Influence of financial indicators on earnings management behavior: evidence from Vietnamese commercial banks

2020 ◽  
Vol 15 (2) ◽  
pp. 167-176
Author(s):  
Tran Quoc Thinh ◽  
Tran Ngoc Anh Thu
Keyword(s):  
Earnings Management ◽  
Commercial Banks ◽  
Firm Value ◽  
Banking Sector ◽  
Vital Role ◽  
Least Square ◽  
Financial Indicators ◽  
Loan Loss ◽  
The Impact

The quality of financial disclosures is of great importance than ever, as Vietnam’s international economic integration has been accelerating recently. This issue is currently particularly worrying for the banking sector in Vietnam, as banks play a vital role in economic development. However, there is a growing concern that managers tend to manipulate financial information using earnings management techniques to meet analyst expectations and to enhance the firm value in the short term. Such behavior can lead to inappropriateness in the decision-making process of financial statement users, as well as impair firm value in the long term. Therefore, this study examines the impact of factors related to financial indicators on earnings management of Vietnamese commercial banks to give more insight into the issue. The data of this study was collected from a sample of 30 Vietnamese commercial banks during a 5-year period from 2015 to 2019. By using the Ordinary Least Square (OLS) regression method through Eviews 10.0, the findings revealed that financial leverage and loan loss provision have a positive and significant impact on earnings management. Also, bank size and profitability were negatively associated with earnings management. Based on these findings, in the context of Vietnam, the study proposed policy suggestions to improve the quality of accounting information and to assist users of financial statements in recognizing and restricting earnings management in commercial banks.

scholarly journals Evaluating the Financial Soundness of Small and Medium-Sized Commercial Banks in Kenya: An Application of the Bankometer Model

2019 ◽  
Vol 11 (6) ◽  
pp. 93 ◽  
Author(s):  
Moses O. Ouma ◽  
Gabriel N. Kirori
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Operating Cost ◽  
Poor Performance ◽  
Capital Adequacy ◽  
Financial Health ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Significant Difference ◽  
Financial Soundness

The study investigated the financial soundness of small and medium-sized commercial banks in Kenya over the four-year period, 2014 to 2017, using the bankometer model and further compared the financial health of the two bank categories. The study employed secondary data from a census of Twelve (12) medium-sized and Sixteen (16) small banks, with the financial soundness being proxied by the overall solvency score (S-Score) in order to achieve its objective. A total of six (6) different financial ratios namely, Capital to Assets ratio, Equity to Assets ratio, Capital Adequacy Ratio, Non-Performing Loans ratio, Operating Cost to Operating Income ratio and the ratio of Loans to Assets were used in the study to measure the degree of financial health of the banks. One of the key findings of the study was that both the small and medium-sized commercial banks in Kenya were financially sound during each of the four (4) years studied, with no significant difference in the financial soundness of the two bank categories. Other findings were that all the banks studied experienced poor performance in loans and operations while two banks had below the benchmark capital adequacy ratio. The findings of the study are important in that, they can be used to formulate policies and strategies for promoting improvement in the financial performance of the banking sector in particular and the business sector at large in the country.

scholarly journals Comparative analysis of Saudi sharia compliant banks: A CAMEL framework

Accounting ◽  
2021 ◽  
pp. 1119-1130 ◽  
Author(s):  
Mohammad Naushad
Keyword(s):  
Saudi Arabia ◽  
Comparative Analysis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Health ◽  
Financial Soundness ◽  
The Stability

A vibrant banking sector remains instrumental to the stability of every economy. Islamic banks are now considered as iris spuria of the banking industry. Countries such as Saudi Arabia have been hailed as the Islamic banking basin. Nevertheless, how well is this sector growing and performing in Saudi Arabia itself? This motivates us to carry out this study. The current study's key objective was to measure Sharia-compliant banks' efficiency on the CAMEL Framework, a commonly accepted framework for banks' financial health. CAMEL is fundamentally an acronym for which the first letter from the five primary segments of a bank operation is jumbled, i.e. “|C|apital adequacy, |A|sset quality, |M|anagement quality, |E|arnings ability and |L|iquidity”. The system is popularly being used for determining the financial soundness and stability of banks. The current study employs this framework to judge the financial performance of four fully Sharia compliant banks or Islamic banks in Saudi Arabia. The publicly accessible audited data of these banks over ten years was taken for analysis. From the final results of the analysis, it is found that all the banks performed stupendously well on the CAMEL framework. AlRajhi Bank was rated number one of all four Sharia-compliant banks. However other three banks namely Alinma Bank, AlBilad Bank, and Aljazeera bank have also done well and overachieved all the criterion of CAMEL's ranking. However, the study proposes a comparison of Sharia-compliant banks with conventional commercial banks. Moreover, it recommended that more banks should engage in offerings of Sharia based products.

scholarly journals Health Check-up of Commercial Banks in the Framework of CAMEL: A Case Study of Joint Venture Banks in Nepal

2007 ◽  
Vol 2 (1) ◽  
pp. 41-55 ◽  
Author(s):  
Keshar J. Baral
Keyword(s):  
Commercial Banks ◽  
Large Scale ◽  
Joint Venture ◽  
Balance Sheet ◽  
Health Check ◽  
Annual Reports ◽  
Financial Health ◽  
Data Set ◽  
Business Studies

Using the data set published by joint venture banks in their annual reports, and NRB in its supervision annual reports, this paper examines the financial health of joint venture banks in the CAMEL framework. The health check up conducted on the basis of publicly available financial data concludes that the health of joint venture banks is better than that of the other commercial banks. In addition, the perusal of indicators of different components of CAMEL indicates that the financial health of joint venture banks is not so strong to manage the possible large scale shocks to their balance sheet and their health is fair. Journal of Nepalese Business Studies Vol.2(1) 2005 pp.41-55

The Fourth Industrial Revolution and private commercial banks: the good, bad and ugly

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asif Rahman ◽  
Md. Joynal Abedin
Keyword(s):  
Commercial Banks ◽  
Industrial Revolution ◽  
Banking Sector ◽  
Stock Exchange ◽  
Vital Role ◽  
Commercial Banking ◽  
Digital Products ◽  
Content Type ◽  
Traditional System ◽  
Fourth Industrial Revolution

Purpose This study aims to assess how new and emerging technologies can contribute to achieving the financial goals of the private commercial banking sector in Bangladesh. It considers the perception among the top management about the Fourth Industrial Revolution (4IR) and further measures the readiness of private commercial banks (PCBs) to become resilient. Design/methodology/approach This study attempts to measure the perception and readiness of the commercial banking sector because of the 4IR based on the stratified sampling method. The research is qualitative and selected PCBs listed in the Dhaka Stock Exchange. 4IR in the context of the banking sector in Bangladesh is a problem that has not been studied more clearly, intended to establish priorities, develop operational definitions and improve the final research design. Findings This research has identified a significant gap of study in the preparedness among the private commercial banking sector in Bangladesh to confront the 4IR while indicating the most significant risks and managerial insights. The findings show technologies will dramatically change the nature of work. Traditional system of banking from the branch will be shifting into banking from everywhere. Hence, digital products and services will foster value-driven business. The result of the study also states the readiness of the banking sector is in the preliminary stage and endorses some of the coping approaches. Research limitations/implications Different schools of thought regarding the role of the 4IR and its future consequences have been observed. The corporate sector in Bangladesh has an inclusive lack of understanding regarding the 4IR. Practical implications The insights may provide directions to banking financial institutions of Bangladesh to thrive during the 4IR. This study is intended to assist policymakers, decision-makers and employees of PCBs to increase awareness and preparedness for future challenges that may appear from the 4IR where the 41 competitive PCBs play vital role in turning the fast emerging Bangladesh economy. Originality/value The contribution of this paper associates with academics and bankers to increase understanding of coping in the context of the escalating use of emerging technology-driven banking services within the PCBs in Bangladesh by determining perception and testing different forms of readiness including a variety of important outcomes such as risks.

scholarly journals Role of training & development on employee retention and organizational commitment in the banking sector of Pakistan

2020 ◽  
Vol 6 (3) ◽  
pp. 639-650
Author(s):  
Muhammad Aleem ◽  
Zulfiqar Ahmad Bowra
Keyword(s):  
Organizational Commitment ◽  
Employee Retention ◽  
Banking Sector ◽  
Vital Role ◽  
Public And Private ◽  
Private Banks ◽  
Career Growth ◽  
Commitment Level ◽  
Multistage Sampling

The value of human capital can easily be increased with the help of training & development because investment made on personnel is very helpful for the success of the firms in the current competitive era to increase retention and commitment level of staff. The major objective of this study is to examine the role of training & development on employee retention and organizational commitment in the banking sector of Pakistan. The population of the study consists of major eight banks of Pakistan including Islamic, foreign, public and private banks. The sequential exploratory design was followed where qualitative and quantitative data collection methods were used. Purposive sampling was used for the interview while for questionnaire multistage sampling was used. The finding of the study clearly indicates that training & developments have significant affiliation and effect on employee retention and commitment. The training & development play a very vital role in employee career growth, compensation, skills enhancement and capacity building to provide quality services to the clients to achieve organizational objectives.

scholarly journals Improvement of Formation and Implementation of Deposit Policy in Russian Commercial Banks

2019 ◽  
Vol 71 ◽  
pp. 02008
Author(s):  
V.A. Manyaeva ◽  
S.V. Rykov ◽  
M.B. Tershukova ◽  
L.N. Milova
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Commercial Banks ◽  
Banking Sector ◽  
Objective Assessment ◽  
Economic Conditions ◽  
Bank Deposits ◽  
The Russian Federation ◽  
Flexible Management ◽  
Real State

Under current market conditions, the problem of attracting available cash assets of natural and legal persons to bank deposits is one of the urgent tasks in the banking sector of the Russian Federation. Under circumstances of high competition and instability in financial markets, the issue of formation, implementation and objective assessment of deposit policy in commercial banks is becoming increasingly important. Reasonable deposit policy should take into account the selected priorities for further growth and improvement of quantitative and qualitative indicators of bank activity, its customers’ characteristics, and socio-economic conditions in the country. Deposit policy has a great impact on the liquidity and bank ability to meet payments. The authors studied the modern scientific idea to form and implement deposit policy of commercial banks in the process of flexible management of banking passives under the real state of the Russian financial market, and identified directions to improve formation and implementation of deposit policy in Russian commercial banks.

Measuring Service Quality of Commercial Banks in an Underdeveloped Economy

2014 ◽  
pp. 256-267
Author(s):  
M. P. Bezbaruah ◽  
Basanta Kalita
Keyword(s):  
Public Sector ◽  
Service Quality ◽  
Commercial Banks ◽  
Banking Sector ◽  
Quality Standard ◽  
Reform Era ◽  
The Public ◽  
Public Sector Banks ◽  
Private Banks

In the post-reform era, quality delivery of the services has acquired centre point of the service industry around the globe. The banking sector being purely a service-related industry has been influenced more by the issue of providing quality service. With the entry of private banks, the banking sector has gone through many transformations including the way services are extended. In a backward state like Assam, this has arrived a little late, but the changes are gradually visible. The chapter captures the service quality standard of the Scheduled Commercial Banks (SCBs) and also for the different bank groups in order to make a comparison. The SERVPERF scale is used to study the replies of the customers in two cities, Guwahati and Tezpur, and some econometric tools are used to analyse the data. The study reveals that the private sector banks are far ahead of the public sector banks in terms of quality of service. The private banks influence the service quality of the SCBs the most among all the bank groups. Overall, the public sector banks, which are the dominant market players, will have to work hard to catch the level of the private banks.

scholarly journals Management Accounting Systems and Organizational Performance of Nepalese Commercial Banks

2018 ◽  
Vol 10 (1) ◽  
pp. 8-19
Author(s):  
Achyut Gnawali
Keyword(s):  
Organizational Performance ◽  
Commercial Banks ◽  
Management Accounting ◽  
Vital Role ◽  
Accounting Systems ◽  
Business Studies ◽  
Control Functions ◽  
Management Accounting Systems ◽  
Planning Decision ◽  
And Control

Management accounting information plays a vital role in these basic management activities but most particularly in planning, decision making, costing and control functions. The purpose of this study was to examine the effect of management accounting systems on organizational performance in Nepalese commercial banks. Descriptive and casual research design has been adopted. Questionnaires and published documents are used to collect the data. It was found that management accounting systems have affected the performance of sample organizations. The Journal of Nepalese Business Studies Vol. X No. 1 December 2017, Page : 8-18

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