scholarly journals IFRS 9 Transition Effect on Financial Stability of Kosovo Commercial Banks

2021 ◽  
Vol 5 (1) ◽  
pp. 1-10
Author(s):  
Besmir ÇOLLAKU ◽  
Skender AHMETI ◽  
Muhamet ALIU
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Statistical Technique ◽  
Loan Portfolio ◽  
Transition Effect ◽  
Long Run ◽  
Before And After ◽  
Ifrs 9 ◽  
Capital Regulations ◽  
The Impact

From January 1, 2018, most of the commercial banks in Kosovo adopted IFRS 9. The new standard introduces the expected credit loss model to allow for timely recognition of credit losses, estimated not only on the actual credit loss but also on forward-looking information regarding the current loan portfolio. Although, transition phases may lead to increasing impairments and a decrease in banks’ equity, which directly influences the financial stability of banks. This paper examines the day-one transition effect of IFRS 9 on the level of assets balance, allowance for loan losses, and capital regulatory class II of banks in Kosovo. To test our hypothesis, we have performed a comparative analysis for the six biggest commercial banks in Kosovo to identify correlation and causality between studied variables. As a statistical technique, we have employed a “paired sample t-test” where we compare financial indicators before and after adopting IFRS 9 to examine the impact on financial stability for commercial banks in Kosovo. Our results are in line with the results of recent studies in the IFRS 9 field and conclude that the transition phase has a significant influence on the recognition of additional loan impairment but assets and capital regulations are not affected significantly. Results demonstrate the transition to IFRS 9 causes instability and re-consolidation of capital, but in the long-run reduce the possibility for large and sudden losses. Commercial banks in Kosovo should follow a balanced growth approach without compromising the quality of the loan portfolio.

scholarly journals Financial stability and liquidity risks in the banking sector across the CEMAC region

2021 ◽  
Vol 9 (1) ◽  
pp. 343-354
Author(s):  
Henri Kouam
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Central Government ◽  
Financial Sector ◽  
Real Economy ◽  
Capital Assets ◽  
Long Run ◽  
Domestic Credit ◽  
The Impact

How does credit from the financial sector and claims on the central government affect banking sector liquidity and financial stability risks? This paper constructs an algorithm, which investigates the impact of domestic credit from the financial sector, bank to capital assets ratio, claims on the central government on banking sector liquidity – a proxy for financial stability. The results show a positive and statistically significant impact of the capital assets ratio on the bank's liquidity of 3.1%. It equally finds that domestic credit and claims on central government hurt bank liquidity, notably of -0.15% and -2.5%, respectively. The study recommends that commercial banks invest in higher-value domestic projects to improve their profitability over the long-run, thereby boosting financial stability. Furthermore, the central bank should make additional liquidity for banks contingent on the amount of credit they provide to the real economy.

The impact of credit risk on the financial stability of commercial banks in Vietnam

2021 ◽  
Vol 11 (2) ◽  
pp. 67-80
Author(s):  
Nguyen Quoc Anh ◽  
Duong Nguyen Thanh Phuong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Dynamic Panel Data ◽  
Z Score ◽  
Return On Equity ◽  
Score Analysis ◽  
Negative Effect ◽  
The Difference ◽  
The Impact

This study investigates the impact of credit risk on the financial stability of Vietnamese commercial banks. The paper uses the Z-score to proxy the financial stability of banks. We use the data of 27 Vietnamese commercial banks on BankScope, during 2010 - 2019. The paper applied a dynamic panel data approach; the selected method is the difference GMM (DGMM). The key question discussed is which factor impacts on Z-score. Analysis results show the negative effect of non-performing loans on the financial stability of banks. When commercial banks have higher non-performing loans, the lower the financial stability is. Additionally, bank-specific variables such as equity on asset ratio, the return on equity, the size of the bank and set of macroeconomic variables affect the bank’s financial stability. Based on the analysis results, we imply relevant policies for the State Bank of Vietnam and commercial banks.

scholarly journals Agriculture Sector Credit and Output Relationship in Nepal

2020 ◽  
pp. 33-53
Author(s):  
Arjun Kumar Dahal ◽  
Khagendra Kumar Thapa
Keyword(s):  
Commercial Banks ◽  
Agricultural Sector ◽  
Least Squares Method ◽  
Manufacturing Sector ◽  
Agriculture Sector ◽  
Industrial Sectors ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

Purpose: The purpose of this study is to find out the condition of priority of commercial banks to provide loans to the agricultural sector and to find the relationship and impact of agricultural loans to the agricultural GDP of Nepal. Objectives: This study aims to compare the condition of loan disbursements in agricultural and manufacturing sectors. It further aims to compare loan percent with growth and contribution to the GDP of the agricultural and industrial sectors and tries to show the impact of agricultural loans to the agricultural GDP of Nepal. Methods: It was based on a descriptive and analytical research design. Statistical tools standard deviation, correlation, regression, etc. are used and Excel, and EViews software are used for the statistical calculations. Statistical calculations and graphs are simultaneously used to show and compare the condition of variables. Results: Commercial banks give higher priority to the manufacturing sector for loans than the agricultural sector. The Johansen Co-integration test indicates no long-run relationship between loans of commercial banks and agricultural output in Nepal. However, the least-squares method, it indicates that a positive causal relationship between agricultural loans and agricultural growth. Implications: The loans of commercial banks directly stimulate the growth of agriculture but the amount of growth is less noticeable. Thus, it is concluded that the commercial bank's loan alone cannot affect and control the growth of the agricultural sector of the Nepalese economy therefore the government should increase its expenditure on the agricultural sector.

scholarly journals The Impact of the Application of International Standard for Financial Reporting No (9) on the Faithful Representation of Financial Accounting Information in Jordanian Commercial Banks

2019 ◽  
Vol 14 (3) ◽  
pp. 88
Author(s):  
Amer Sulaiman Alkhresat ◽  
Tareq Hammad Almubaydeen
Keyword(s):  
Financial Reporting ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Accounting Information ◽  
Correlation Coefficients ◽  
Study Data ◽  
Financial Accounting ◽  
Faithful Representation ◽  
Ifrs 9 ◽  
The Impact

The purpose of this study is to demonstrate the impact of the application of IFRS 9 on the faithful representation of financial accounting information in Jordanian commercial banks. To achieve this objective, the study used the descriptive analytical approach to analyze a questionnaire that was answered by the managers of 13 commercial banks, which are listed in Amman stock exchange. The researchers distributed 78 questionnaires, while 76 were retrieved with a percentage of 97%. Additionally, the study relied on the descriptive statistics, correlation coefficients, and the simple regression to analyze the study data, and hypotheses. As a result, the study found a significant impact for the application of IFRS 9 to the faithful representation of financial accounting information. Relied on the aforementioned consequence, the study recommended that there is a necessity for financial departments to focus on measuring their financial obligations, as well as focusing on the development of accounting policies during the application of the standard. In addition, the study concludes that it is important for these banks to have an adequate knowledge of accounting standards in general, while standard No “9” specifically.

The Impact of Moral Expectancy Violations on Audiences’ Parasocial Relationships With Movie Heroes and Villains

2019 ◽  
pp. 009365021988651 ◽  
Author(s):  
James Alex Bonus ◽  
Nicholas L. Matthews ◽  
Tim Wulf
Keyword(s):  
Response Surface ◽  
Statistical Technique ◽  
Longitudinal Survey ◽  
Formation Processes ◽  
Expectancy Violations ◽  
Parasocial Relationships ◽  
Disposition Theory ◽  
Immoral Behavior ◽  
Before And After ◽  
The Impact

Integrating the predictions of disposition theory and expectancy violations theory, a longitudinal survey assessed adults’ parasocial relationships with characters in a popular movie franchise before and after the release of the latest film installment of that franchise. Consistent with disposition theory, characters’ immoral behavior in the film weakened participants’ parasocial relationships with those characters. However, analyses conducted using a novel statistical technique (i.e., response surface analysis) revealed that further shifts in the strength of these relationships occurred when characters subverted participants’ expectations regarding their typical moral behavior. Specifically, participants’ relationship with the film’s primary villain strengthened when he was perceived as behaving more morally than expected, whereas their relationship with the film’s primary hero weakened when he was perceived as behaving either more or less morally than expected. These findings highlight the need for more nuanced examinations of disposition formation processes.

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 Subtidal littering: Indirect effects on soft substratum macrofauna?

2008 ◽  
Vol 9 (2) ◽  
pp. 35 ◽  
Author(s):  
I. AKOUMIANAKI ◽  
P. KONTOLEFAS ◽  
S. KATSANEVAKIS ◽  
A. NICOLAIDOU ◽  
G. VERRIOPOULOS
Keyword(s):  
Community Structure ◽  
Sediment Surface ◽  
Long Run ◽  
Significant Difference ◽  
Before And After ◽  
Soft Substratum ◽  
One Year ◽  
The Impact ◽  
Control Surfaces ◽  
Macrofauna Community

Changes in macrofauna community structure, abundance and species richness were examined both before and one year after the deployment of plastic and glass bottles at littered (litter density: 16 items / 100 m2) and non-littered (control) surfaces at three unimpacted coastal areas of the western Saronikos Gulf (Greece). In parallel, LOI% at the adjacent sediments and changes in the composition of feeding types of the megaepifauna that colonized the litter were examined across treatments. Significant changes in macrofauna community structure were demonstrated between before and after littering. At only one of the sites was there detected a significant difference in macrofauna community structure between control and littered plots after littering. This difference was linked with a significant increase in the abundance of opportunistic polychaete species and LOI% levels in the sediment surface due to the entrapment of macrophytal debris within the littered surface. The study did not show a consistent direct response of macroinfauna community to litter and the associated megafauna. Unlike the megafauna attracted by litter items, soft-substratum macrofauna is less responsive to the addition of novel hard substrates in adjacent sediments. Alternatively, it could be that the impact of littering with small items triggers a macrofauna response detectable in the long-run.

scholarly journals IFRS9 TRANSITION IMPACT ON THE QUALITY OF FINANCIAL REPORTING INFORMATION: A CASE STUDY OF YEMEN COMMERCIAL BANKS

2020 ◽  
pp. 54-63
Author(s):  
Mahdi Qasem Saeed, Saeed ◽  
D. A. Nikam
Keyword(s):  
Data Analysis ◽  
Statistical Methods ◽  
Financial Reporting ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Descriptive Statistics ◽  
Ifrs 9 ◽  
The Impact

The purpose of this study is to know the IFRS 9 transition impact on the suitability and reliability of the quality of financial reporting information. A questionnaire was used in data collecting. Out of 92 questionnaires, only 85 were valid and suitable. The data analysis has been done by using SPSS and several statistical methods through descriptive statistics such as averages, standard deviations, and T-test. This study adds to the literature by knowing the IFRS 9 transition impact on the suitability and reliability of the quality of financial reporting information in the commercial banks of Yemen. The study reached that there is a positive relationship between the impact of the adoption of the IFRS9 on the suitability and reliability of the quality of financial reporting information in Yemen commercial banks. Finally, the study was concluded with some recommendations. KEYWORDS: International Standard Financial Reporting IFRS9, Quality of Financial Reporting Information, Suitability, and Reliability, commercial banks.

scholarly journals Monetary Policy and Financial Stability in the Nigerian Banking Industry

2019 ◽  
Vol 11 (1) ◽  
pp. 82
Author(s):  
Oparah Felix Chukwudi ◽  
James Tumba Henry
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Banking Industry ◽  
Stability Index ◽  
Open Market ◽  
Long Run ◽  
Market Operation ◽  
The Impact ◽  
Nigerian Banking ◽  
Long Run Equilibrium

This study examined the impact of monetary policy on financial stability in the Nigerian banking industry for the period 2008Q1 to 2016Q2, using an error correction model. Banking industry financial stability index (BIFSI) was computed within the study and was used as a measure of financial stability in the Nigerian banking industry. The study discovered that the impact of monetary policy on financial stability in the Nigerian banking industry was weak. It also revealed a significant long run equilibrium relationship between monetary policy and financial stability in the Nigerian banking industry with a speed of adjustment to long run equilibrium of 66.54%. It was concluded that open market operation and exchange rate channels are more effective channels of transmitting monetary policy to financial stability in the banking industry, than interest rate channel.

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