scholarly journals IMPACT OF LIQUIDITY MANAGEMENT ON COMMERCIAL BANKS PROFITABILITY IN KOSOVO DURING THE PERIOD 2011-2019

2021 ◽  
Author(s):  
Yllka Ahmeti ◽  
◽  
Ardi Ahmeti ◽  
Albina Kalimashi ◽  
◽  
...  
Keyword(s):  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Liquidity Management ◽  
Return On Equity ◽  
Capital Adequacy Ratio ◽  
Data Regression ◽  
The Impact ◽  
The Relationship

Liquidity management and its impact on the profitability of commercial banks are two issues of particular importance in the further development of the business and at the same time two sources of concern for financial managers. For this reason, this study aims to determine the impact of changes in liquidity levels on the profitability of commercial banks in Kosovo. The study is based on secondary data for nine commercial banks in Kosovo over 9 years, respectively for the period from 2011 to 2019, taken from the audited annual statements of these financial institutions. The study measures the relationship between liquidity management and profitability and its impact on profitability. In order to process the data, regression analysis and correlation were used, while the findings determine whether there is a significant relationship between liquidity management and profitability in commercial banks in Kosovo. The current ratio, the quick ratio, the cash ratio and the capital adequacy ratio have been taken as liquidity indicators, while return on assets and return on equity are considered as profitability indicators.

scholarly journals The Impact of Capital Adequacy Ratio (CAR) on Islamic Banks’ Performance in Selected MENA Countries

2021 ◽  
pp. 116-133
Author(s):  
ADEL Z. A. ALNAJJAR ◽  
Anwar Hasan Abdullah Othman
Keyword(s):  
United Arab Emirates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Mena Countries ◽  
Capital Adequacy Ratio ◽  
The Impact

A strong capital adequacy ratio is crucial to a financial institution's success and helps it to survive any potential financial crisis. From Q1 2017 to Q4 2019, the influence of the Capital Adequacy Ratio (CAR) on the performance of Commercial Islamic Banks in MENA nations (Qatar, Oman, Bahrain, Kuwait, United Arab Emirates, Saudi Arabia, and Jordan) is examined. The performance measures utilized in this study are Return on Assets (ROA) and Return on Equity (ROE). The study's sample frame comprises all Islamic commercial banks in the designated MENA nations, with a sample size of 18 Islamic commercial banks. Panel data, fixed and random models, are applied in this study since there are multiple entities and time series. The findings of the study showed that the selected Islamic banks are committed to Capital Adequacy Ratio (CAR) which is defined under Basel III. This is considered the largest percentage regulated by the Basel Committee. The study also found that there is a statistically negative significant influence of CAR on both performance indicators ROE and ROA in the commercial Islamic banks in the selected MENA countries. The results of the study can be useful to a policymaker or decision-makers in the Islamic Banks industry. First, the research could be a reference to financial regulators such as central banks which may use the findings to provide regulation on optimal capital levels for local banks in terms of regulations, deregulations, and financial disruption. Next, the practice implications in the Islamic banking sector will provide them with insight as to how a bank’s capital influences its earnings. Hence, management can work towards attaining an optimal structure that maximizes their performance as well as identifying “best” and “worst” practices associated with capitalization levels.

scholarly journals The Impact of Capital on Bank Profitability: Case of Tunisia

2021 ◽  
pp. 7-20
Author(s):  
Mohamed Aymen Ben Moussa ◽  
Hédi Trabelsi ◽  
Adel Boubaker
Keyword(s):  
Capital Adequacy ◽  
Bank Capital ◽  
Return On Assets ◽  
Bank Profitability ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
The Impact ◽  
The Relationship ◽  
Interest Margin

The capital adequacy ratio measures the ability of a financial institutions to meet its liabilities by comparing its capital with assets. This article studied the relationship between bank capital and bank profitability measured by (Return on assets; return on equity; net interest margin). We used a method of static panel for a sample of 11 banks in Tunisia between (2000…2018). We found that bank capital has a significant impact on ROA. But capital has a non significant effect on bank return on equity and not significant impact on bank net interest margin.

scholarly journals Liquidity Management and Financial Performance: Evidence From Commercial Banks in Botswana

2020 ◽  
Vol 11 (5) ◽  
pp. 399
Author(s):  
C.R. Sathyamoorthi ◽  
Mogotsinyana Mapharing ◽  
Mashoko Dzimiri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Liquidity Management ◽  
Policy Makers ◽  
Return On Equity ◽  
Research Population ◽  
The Impact

The study examined the impact of liquidity management on the financial performance of commercial banks in Botswana. The study used Return on Assets and Return on Equity to measure financial performance. Cash and cash equivalents to total assets ratio, Cash to deposits ratio, Loans to deposits ratio, Loans to total assets ratio, Liquid assets to total assets ratio, and Liquid assets to deposits ratio were used as proxies for liquidity management. The research population was all the 9 commercial banks in Botswana and the study covered a period of 9 years from 2011 to 2019. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyse the data. The results from regression analysis show statistically significant positive relationships for Loans to total assets ratio and Liquid assets to total assets ratio with return on assets and return on equity. Loans to deposits ratio and Liquid assets to deposits ratio had statistically significant negative relationships with return on assets and return on equity. Cash and cash equivalents to total assets ratio had statistically insignificant positive relationship with return on assets and return on equity whilst cash to deposits ratio had statistically insignificant negative relationship with return on assets and return on equity. Findings suggest that the commercial banks should try to optimize liquidity variables to boost bank performance. The policy makers also, through the Central Bank, should come up with initiatives such as prescribing minimum liquidity requirements that will help banks to stay profitable.

scholarly journals Pengaruh Faktor Internal dan Faktor Eksternal terhadap Perataan Laba Bank Umum Syariah Indonesia Periode 2014-2018

2021 ◽  
Vol 1 (2) ◽  
pp. 511-523
Author(s):  
Setiawati Indah Gempita ◽  
Leni Nur Pratiwi ◽  
Lili Masli
Keyword(s):  
Commercial Banks ◽  
Audit Committee ◽  
Secondary Data ◽  
Income Smoothing ◽  
Capital Adequacy ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
Capital Adequacy Ratio ◽  
Data Regression ◽  
Internal And External Factors

This study aims to see the effect of Total Financing (TF), Non Performing Financing (NPF), Earnings Before Taxes and Provision (EBTP), Good Corporate Governance (GCG) proxied by the Audit Committee, Capital Adequacy Ratio (CAR), BI rate. and Inflation on Income Smoothing at Islamic Commercial Banks (BUS) for the period 2014-2018. This research is a quantitative study, the selection was by purposive sampling method. The data used are secondary data. The data analysis method uses panel data regression analysis using the Eviews10 program tool. The data population in this study were 12 Islamic commercial banks in Indonesia which will be sampled in the study. The results of this study indicate that simultaneously internal and external factors have a significant effect on income smoothing. Partially the NPF, EBTP, GCG, CAR variables have a significant effect on income smoothing, while TF, BI rate and the inflation rate do not have a significant effect on income smoothing.

scholarly journals Pengaruh CAR, FDR, Dan BOPO Terhadap ROA Pada Bank Syariah Di Indonesia

2021 ◽  
Vol 9 (2) ◽  
Author(s):  
Intan Rika Yuliana ◽  
Sinta Listari
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Predictive Ability ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operating Income ◽  
Capital Adequacy Ratio

Banking companies, including Islamic banking, need to avoid problems that can cause financial failure, which can make the bank unable to carry out its business operations and may end up in bankruptcy, so that the level of soundness of the bank based on risk must always be monitored. Therefore, banks must maintain their financial ratios in accordance with Bank Indonesia decisions and maintain their performance. So analyzing the effect of the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and the Ratio of Operating Costs to Operating Income (BOPO) on Return On Assets (ROA) in Islamic Banks is considered very important.   This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and Operational Costs on Operating Income (BOPO) on Return On Assets (ROA) at Islamic Commercial Banks in Indonesia. This research includes quantitative research and the type of data used is secondary data. The data used in this study is the ratio of CAR, FDR, BOPO, and ROA for the period 2014–2019 which was obtained from the annual Financial Statements on the official website of each bank.   The population in this study were 14 Islamic Commercial Banks in Indonesia. After passing the purposive sampling stage, there were 6 samples of Sharia Commercial Banks that were suitable for use, namely BCA Syariah, BNI Syariah, Bank Mega Syariah, Bank Muamalat Indonesia, Bank Panin Dubai Syariah and BRI Syariah. The analytical method used in this research is Multiple Linear Regression Analysis.   The results of the partial study with the t-test showed that the CAR and FDR variables had a positive and significant effect on the ROA of Islamic commercial banks. While the BOPO variable has a negative and significant effect on the ROA of Islamic commercial banks. And the results of the f test show that the CAR, FDR, and BOPO variables together have a significant influence on the ROA of Islamic commercial banks. The predictive ability of these three variables on ROA is 82.7%, the remaining 17.3% is explained by other variables outside of this research.   Keywords: Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Operating Expenses per Operating Income (BOPO), Return On Assets (ROA)

scholarly journals The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020

2021 ◽  
Vol 6 (6) ◽  
pp. 42-46
Author(s):  
Rano Rahadian ◽  
Dudi Permana
Keyword(s):  
Panel Data ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Financial Reports ◽  
Return On Equity ◽  
Minimum Capital ◽  
The Impact

The purpose of this research is to gain an understanding of The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020. The data of this research is obtained from financial reports published by each bank in 2015 to 2020 period. This research uses panel data processed using EViews software version 9.0. The results show that NPL negatively and insignificantly affects CAR. ROA gives positive and insignificant impacts toward CAR, while ROE causes negative and insignificant effects on CAR. In addition, there is positive and significant impacts on CAR caused by LDR.

scholarly journals Impact of Credit Risk on the Profitability of Selected Commercial Banks Listed on the National Stock Exchange

2021 ◽  
Vol 1 (3) ◽  
pp. 1-15
Author(s):  
Sitaram Pandey ◽  
Amitava Samanta
Keyword(s):  
Credit Risk ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Series Data ◽  
Return On Assets ◽  
Return On Equity ◽  
Capital Adequacy Ratio ◽  
Indian Banks

This research is focusing on evaluation of the impact of credit risk on the profitability of selected commercial banks listed on National Stock Exchange. The financial ratios are taken as a proxy to evaluate credit risk and bank’s profitability. Profitability was measured through Return on Equity and Return on Assets whereas credit risk was measured by Pre-Provision Profit to Total Loans and Advances, Loan to Asset Ratio, Capital Adequacy Ratio, Credit to Deposit Ratio and Advances over Loan Funds. Based on the financial information of 2009 to 2017, the study concludes that Credit risk, as calculated from Pre-Provision Profit to Total Loans and Advances, Loan to Asset Ratio, Capital Adequacy Ratio, Credit to Deposit Ratio and Advances over Loan Funds have a non-significant relationship with profitability measured by Return on Assets whereas there is significant relationship exist only between Advances over Loan Funds and profitability measured by Return on Equity. The regression model of ROE shows the model is significant as compared to ROA model. The present study employed Auto Correlation and Durbin-Watson statistics, Unit root test & Multi-Collinearity tests to measure the robustness of time series data. Also the results of the regression analysis show that there exist a negative correlation between credit upon deposit ratio and return on equity. As per the current study, the Indian banks has to keep check on advances upon total funds ratio, as it was found most significant factor impacting the profitability of Indian banks.

scholarly journals Pengaruh CAR, NPL, LDR dan BOPO Terhadap Return ON Assets (ROA) pada Bank yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019

2021 ◽  
Vol 3 (2) ◽  
pp. 316-328
Author(s):  
Panji Maulana ◽  
Sany Dwita ◽  
Nayang Helmayunita
Keyword(s):  
Panel Data ◽  
Commercial Banks ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Sample Type ◽  
Return On Assets ◽  
Collection Method ◽  
Capital Adequacy Ratio

This research aims to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Peforming Loan (NPL), dan Operational Effeciency Ratio (OER) of commercial banks listed on the Indonesia Stock Exchange 2017-2019. Population in this research while sample was defined bu purposive sampling method and 28 Banks as sample. Type of data that we used was secondary data (panel data) from www.idx.com and company's website. Data collection method used documentation method and multiple regression analysist method. The result are Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) have no effect on ROA.

scholarly journals Pengaruh Loan To Deposit Ratio, Capital Adequacy Ratio, Dan Non Performing Loan Terhadap Profitabilitas Perbankan Yang Terdaftar Di Bursa Efek Indonesia (BEI)

2021 ◽  
Vol 9 (2) ◽  
pp. 131-140
Author(s):  
Fanesha Fanesha ◽  
Nusa Muktiadji ◽  
Ganjar Hendrian
Keyword(s):  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Coefficient Of Determination ◽  
Return On Assets ◽  
Independent Variables ◽  
Capital Adequacy Ratio ◽  
Independent Variable ◽  
The Relationship

This study aims to determine how the influence of Loan to Deposit Ratio, Capital Adequacy Ratio and Non Performing Loans on Banking Profitability Listed on the Indonesia Stock Exchange (IDX) that occurs at PT Bank Central Asia Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank CIMB Niaga Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Tabungan Negara (Persero) in 2014-2018. The data used in this study are quantitative data with secondary data sources derived from the financial statements of each bank. This research uses descriptive statistical analysis methods, inference analysis, classic assumption test, multiple linear analysis and coefficient of determination. Regression analysis is used to find out how the influence of independent variables on the dependent variable with a significance value of 5 percent. While the determination coefficient analysis is used to determine the relationship between the independent variable and the dependent variable. From the partial hypothesis test (T Test) that has been done by the author, it is obtained that the Loan to Deposit Ratio affects Return On Assets, Capital Adequacy Ratio has no effect on Return On Assets and Non Performing Loans has no effect on Return On Assets. For simultaneous hypothesis testing (Test F), the results obtained are that the independent variables namely Loan to Deposit Ratio, Capital Adequacy Ratio and Non Performing Loans simultaneously influence the Return on Assets.   Key words :     Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Return On Asset (ROA).

scholarly journals Mengukur Kinerja Pra Merger Tiga Bank Umum Syariah dan Pengaruhnya Terhadap Return on Asset

2021 ◽  
Vol 8 (1) ◽  
pp. 70-78
Author(s):  
Hanif Artafani Biasmara ◽  
Pande Made Rahayu Srijayanti
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Third Party ◽  
Return On Assets ◽  
Financial Reports ◽  
Operating Income ◽  
Performance Variables ◽  
Capital Adequacy Ratio

Abstrak  - Pada tahun 2020, telah ditetapkan pelaksanaan merger antara tiga Bank Umum Syariah yang merupakan anak perusahaan dari Bank Badan Usaha Milik Negara (BUMN). Dimana ketiga bank tersebut adalah PT Bank Syariah Mandiri, PT Bank BRIsyariah, Tbk, dan PT Bank BNI Syariah. Penelitian ini dilakukan untuk mengukur kinerja keuangan ketiga bank tersebut sebelum dilakukannya merger dan pengaruhnya terhadap Return on Asset (ROA). Dalam penelitian ini, kinerja keuangan akan diukur dengan variabel Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non Performing Financing (NPF), Biaya Operasional dan Pendapatan Operasional (BOPO), dan persentase pertumbuhan Dana Pihak Ketiga (DPK). Data yang digunakan dalam penelitian ini merupakan data sekunder yang diperoleh melalui laporan keuangan tahunan dari masing-masing bank dengan periode tahun 2015-2019. Dimana data diolah dan dianalisis dengan menggunakan Regresi Linear Data Panel melalui perangkat lunak Stata 16. Kinerja ketiga Bank Umum Syariah sebelum dimerger menunjukkan hasil yang baik. Selama lima tahun terakhir CAR dan NPF memiliki kinerja yang memuaskan. FDR dan BOPO berada sedikit melenceng dari batas minimum ataupun maksimum. Berikutnya, pertumbuhan DPK rata-rata sebesar 15, 89333%. Seluruh variabel kinerja bank tersebut setelah dilakukan pengolahan data, menunjukkan bahwa variabel CAR, FDR, NPF, BOPO, dan pertumbuhan DPK bersama-sama memiliki pengaruh signifikan terhadap ROA. Sedangkan secara parsial, CAR, NPF, dan pertumbuhan DPK tidak memiliki pengaruh signifikan terhadap ROA. Tetapi FDR dan BOPO memiliki pengaruh signifikan terhadap ROA. Dimana melalui penelitian ini diharapkan dapat menjadi pertimbangan bagi PT Bank Syariah Indonesia Tbk dalam upaya memperoleh kinerja yang baik dan pertumbuhan profitabilitas yang tinggiKata Kunci: CAR, FDR, NPF, BOPO, Pertumbuhan DPK, ROA, Bank Umum Syariah Abstract - In 2020, the implementation of a merger between three Islamic Commercial Banks which are subsidiaries of the State-Owned Enterprise (BUMN) Bank has been determined. Where the three banks are PT Bank Syariah Mandiri, PT Bank BRIsyariah, Tbk, and PT Bank BNI Syariah. This research was conducted to measure the financial performance of the three banks before the merger, and their effect on Return on Assets (ROA). In this study, financial performance will be measured by the variable Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF), Operational Costs and Operating Income (OEOI), and the percentage growth in Third Party Funds (TPF).The data used in this study is secondary data obtained through the annual financial reports of each bank for the period 2015-2019. Where the data is processed and analyzed using Linear Data Panel regression through Stata 16. The performance of the three Islamic Commercial Banks before the merger showed good results. Over the last five years, CAR and NPF have performed satisfactorily. FDR and BOPO have slightly deviated from the minimum or maximum limits. Next, the growth in deposits was an average of 15.89333%. All of these bank performance variables, after data processing, show that the variables CAR, FDR, NPF, OEOI, and TPF growth together have a significant effect on ROA. Meanwhile, partially, CAR, NPF, and TPF growth have not a significant effect on ROA. However, FDR and BOPO have a significant effect on ROA. Where through this research it is hoped that in the future it can be a consideration for PT Bank Syariah Indonesia, Tbk to obtain good performance and high profitability growth.Keywords: CAR, FDR, NPF, OEOI, TPF Growth, ROA, Islamic Commercial Banks

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