scholarly journals WORLD BANKING SYSTEM: POST-CRISIS RECOVERY?

2019 ◽  
pp. 321-337
Author(s):  
Olena BULATOVA ◽  
Tetyana MARENA
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Capital Adequacy ◽  
Asia Pacific ◽  
Modern World ◽  
Return On Assets ◽  
Return On Equity ◽  
Crisis Recovery ◽  
The World

The article studies the state of the world banking system recovery after the global crisis. It is stated that by the indicators of financial depth, capital adequacy and profitability of the biggest banks the world banking system is nowadays the most stable and profitable for the entire post-crisis period of its development. It is noted that the structure of the modern world banking system corresponds to the spatial structure of the world economy, which consists of different taxonomic levels of regions and where the role and importance of global regions is being enhanced against the background of the globalization processes deepening. Based on the study of changes in the distribution of bank assets and banks’ profits between global regions, the rankings of the biggest banks in the world, indicators of return on assets and return on equity of banks from different regions, regional peculiarities of mergers and acquisitions in the banking sector, progress in the implementation of the requirements of the Basel Committee on Banking Supervision, regional features of the post-crisis recovery of the world banking industry are identified. It is proved that there is an increasing degree of unevenness in distribution of bank assets between global regions, and a tendency of increasing bank assets concentration in three main regions – Asia Pacific, American and European regions – is found out. On the basis of assessment of the transformational shifts in the regional structure of the world banking industry changes of the global regions role in the world banking system in the process of its post-crisis recovery are identified.

scholarly journals PERBANDINGAN TINGKAT PROFITABILITAS DAN LIKUIDITAS DARI ASSET-LIABILITIES MANAGEMENT PADA BANK SYARIAH DAN BANK KONVENSIONAL

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Rindang Nuri Isnaini Nugrohowati
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Liability Management ◽  
Capital Adequacy Ratio ◽  
Conventional Banks ◽  
Important Position

Abstract The banking sector has a very important position for the economic systemof a country. The banking system, which is part of the financial system willaffect the course of the economic system as a whole. If the banking system isweak then the system will also be weak economy. Banking is an intermediaryinstitution is the institution that channel funds from surplus funds (surplusunits) to the sectors that lack of funds (defi cit units). With the banking economic actors in need of funds can be met so that the economy can continue to run. In this study will specifi cally analyze the comparison of the level of profi tability of the asset-liability management in Islamic banks and conventional banks are seen from the return on assets and return on equity rises. It also will be studied comparative level of liquidity in Islamic banks and conventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio. By Hyphothesis is as follows : Ha1: there are differences in the level of profitability of the asset-liabilitymanagement in Islamic banks and conventional banks are seen from the return on assets and return on equity Ha2: there are differences in the level of liquidity in Islamic banks andconventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio Data analysis has been done obtained the following conclusions, based onmeans testing compare with test Independent-Samples t-test showed that the level of tability seen from ROA and ROE between Islamic Bank and Bank Konvensiona show any signifi cant difference. This is demonstrated by tests of signifi cance 0.02 0.05 for FDR, while for the signifi cance test CAR of 0.38> 0.05. Keyword: Profi tabilitas, Likuiditas, Asset Liabilities Management, Bank Syariah

Comparative analysis of Financial performance of HDFC and SBI bank on the basis of Ratio analysis

2021 ◽  
pp. 111-114
Author(s):  
Reetika Verma
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Ratio Analysis ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Equity Ratio ◽  
Accounting Ratios

The banking sector in any economy plays a significant role in its growth and development. This paper is based on financial performance analysis of two leading banks of India. This paper aims to evaluate financial performance of HDFC and SBI bank on the basis of accounting ratios and also to study the functioning of the Indian banking system [6]. In this paper different ratios of both the banks are compared. Capital adequacy ratio, debt equity ratio, leverage ratios, profit and loss account ratios, net interest margin ratio, return on equity and other ratios are used to compare the performance of both the banks. This research is based on the data collected from financial statements of the banks. The performance of both the banks are compared from the year 2015 to 2020. It is observed that performance of HDFC is better than SBI not only in terms of ratio analysis but also in terms of customer satisfaction.

scholarly journals DETERMINANTS OF EFFICIENCY IN ALBANIAN BANKING INDUSTRY; AN EMPIRICAL DIAGNOSIS

2016 ◽  
Vol 4 ◽  
pp. 098-105
Author(s):  
Elona Shehu
Keyword(s):  
Regression Analysis ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Banking Industry ◽  
Banking System ◽  
Capital Adequacy ◽  
Efficiency Ratio ◽  
Return On Assets ◽  
Considerable Decrease ◽  
Bank Efficiency

Many articles discuss the importance of banking systems and their profitability as well as the factors determining these. This article examines the determinants of bank efficiency in the Albanian banking industry. During the second half of this decade a considerable decrease in the efficiency ratio of the Albanian banking system was evident. To understand which factors affected the efficiency, and whether Albania should control certain factors in order to improve efficiency, relationships between particular factors were analyzed using a multiple regression analysis. The study examines 16 commercial banks in Albania, from 1998 to 2015. It finds a significant relationship between efficiency, capital adequacy, the return on assets, and solvency

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 Comparative Analysis of Banking System Profitability in Western Balkan Countries

2019 ◽  
Vol 2 (2) ◽  
pp. p33 ◽  
Author(s):  
Qazim Tmava ◽  
Fahredin Berisha ◽  
Milaim Mehmeti
Keyword(s):  
Comparative Analysis ◽  
Interest Rates ◽  
Commercial Banks ◽  
Direct Investment ◽  
Banking Sector ◽  
Banking System ◽  
Return On Assets ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Balkan Countries

The aim of this paper is to analyze the profitability of the banking sector in the Western Balkan countries. (Note 1) This paper reviews return on assets (ROA) as an indicator of profit and return on equity (ROE) as an indicator of profitability in the banking systems of the respective countries, as well as some other macroeconomic variables that influence them. The main objective of this study is to identify the specific and macroeconomic variables of this industry, that have an impact on the profitability of commercial banks operating in the Western Balkan countries during the 2008-2015 period. Specifically, this paper addresses external indicators (gross domestic product, remittances, foreign direct investment, unemployment), and industry and bank specific indicators (assets, loans, loan-to-deposit ratio, non performing loans and interest rates) that affect the profitability of the banking system in respective countries. Therefore, according to the data generated during the research and the literature review, the profitability of banks measured by the ROA and ROE indicators, regarding the analyzed countries, turns out to be extremely low, especially compared to EU countries where they strive.

scholarly journals Impact of the Digital Economy on the Banking Sector

2020 ◽  
Vol 159 ◽  
pp. 04033 ◽  
Author(s):  
Oleg Litvishko ◽  
Kamar Beketova ◽  
Bibigul Akimova ◽  
Assem Azhmukhamedova ◽  
Gulnara Islyam
Keyword(s):  
Theoretical Basis ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Banking Services ◽  
Foreign Experience ◽  
Banking Activity ◽  
The World ◽  
Main Factors ◽  
The Impact

In the article innovations in banking and foreign experience of digitalization studies. Catalyst of banking activity main factors of development of banking innovations considered as. The study allows us to set the boundaries of the digital banking model, determine the specific features of its activities and banking services to deepen the understanding of the subjects of the banking system of modern features of the development of the banking industry allows. Presented materials identification of the level of development of banking services for orientation and theoretical basis, it may be the digitalization of banking processes in terms of the impact of their activities on the transformation credit organizations and banking systems of countries around the world aimed at improving efficiency promotes coordination.

scholarly journals An assessment of the financial soundness of the Kazakh banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aigul P. Salina ◽  
Xin Zhang ◽  
Omaima A.G. Hassan
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Principal Component ◽  
Capital Adequacy ◽  
Content Type ◽  
Bank Monitoring ◽  
The World ◽  
Financial Soundness ◽  
Using Data ◽  
Asset Quality

PurposeThe contribution of the banking industry to the financial crisis of 2007/8 has raised public concerns about the financial soundness of banks around the world with many countries still suffering the backlogs of this crisis. The continuous emergence of such crises at both national and international levels increases governments', bank regulators' and financial market participants' need for reliable tools to assess the financial soundness of banks. In this context, this study investigates the financial soundness of the Kazakh banking sector, which is ranked by the World Bank as the first in the world in terms of the percentage of nonperforming loans (NPL) to total gross loans in 2012.Design/methodology/approachUsing data about all Kazakh banks over the period January 01, 2008 to January 01, 2014, the study identifies a number of accounting indicators that influence the financial soundness of banks using principal component analysis (PCA). Then, it uses the outcomes of the PCA in a cluster analysis and groups the Kazakh banks into sound, risky and unsound banks at two points in time: January 01, 2008 and January 01, 2014. This methodology was further tested against a ranking system of banks and proved to be more reliable in detecting risky banks.FindingsFifteen financial ratios were initially selected as accounting indicators for the assessment of bank financial soundness. Using PCA, twelve indicators were isolated, which explain five principal components of capital adequacy, return on assets, profitability, asset quality, liquidity and leverage. Then using the “k-means” method, the results suggest a structure of the Kazakh banking sector on January 01, 2008 that includes two groups of banks: sound and risky banks. On January 01, 2014, this structure of the banking system has changed to include three groups of banks: sound, risky and unsound banks. Thus, in 2014 a new group of banks has emerged, i.e. financially unsound banks.Practical implicationsThe proposed cluster-based methodology has proven to be a reliable tool to detect the financial soundness of Kazakh banks, which makes us advocate its employability for bank monitoring and supervision purposes.Originality/valueThis study is the first to employ a cluster-based methodology to assess the financial soundness of a banking sector. This methodology can be used at a micro-level to determine the structure of a banking sector. Also, it can be used to monitor any changes in the structure of a banking sector and provide early warning signals about the financial health of banks.

scholarly journals Assessing the Performance of Factors Affecting the Profitability of the Banking System: Evidence from Kosovo

2020 ◽  
Vol 9 (2) ◽  
pp. 304-314
Author(s):  
Esat A. Durguti ◽  
Enver H. Krasniqi ◽  
Dea Krasniqi
Keyword(s):  
Dynamic Models ◽  
Banking Industry ◽  
Banking System ◽  
Financial Statements ◽  
Regression Method ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Independent Features ◽  
Macroeconomic Determinants

This review done by empirical surveillance observes the significances of a number of the explicit factors of the bank that are matching to bank governance, financial market configuration on one hand, and macroeconomic aspects of the Kosovo bank's performance on another hand. The Management and assessment of Kosovo's bank effectiveness were accomplished through two indicators return on assets (ROA) and return on equity (ROE). To recognize this assessment, the OLS, and Arellano-Bond (GMM) regression method will be applied with the data used from the financial statements of Kosovo banks on a periodical basis over the period 2006-2019. Based on the challenging environments in which the banking system of Kosovo has passed, we have carefully chosen some specific determinants of the banking industry, as well as some of the macroeconomic determinants. The outcomes propose that upcoming studies may contain diverse dynamic models as well as altered dependent and independent features to elucidate the performance of Kosovo banks.  Keywords: Bank’s profitability, time series, OLS regression, GMM.

scholarly journals Building Vulnerability Predictive Indicator for the Banking Sector

2020 ◽  
Vol 9 (3) ◽  
pp. 01-14
Author(s):  
Maria Afreen
Keyword(s):  
Risk Management ◽  
Business Strategy ◽  
Banking Sector ◽  
Risk Measures ◽  
Banking System ◽  
Capital Adequacy ◽  
Building Vulnerability ◽  
Regulatory Requirements ◽  
Return On Equity ◽  
Economic Vulnerability

Abstract For risk and capital measurement, banks and other financial institutions need to meet forthcoming regulatory requirements. However, it is a serious issue to think that meeting regulatory requirements is the sole or even the most important reason for establishing a scientific, sound risk management system. To direct capital to activities with the best risk/reward ratios, managers need reliable risk measures. To stay within the limits imposed by readily available liquidity, by creditors, customers, and regulators, they need estimates of the size of potential losses. They need mechanisms to monitor positions and create incentives for prudent risk-taking by divisions and individuals. Risk measurement deals with the quantification of risk exposures, whereas risk management refers to the overall process by which managers satisfy these needs and follows to define a business strategy, to detect the risks to which are visible, quantifying those risks, and to control and understand the nature of the risks it faces. This research focuses on the economic vulnerability faced by banks in the financial sector in terms of the crises issues perspective of economic distress. Here, the methodology followed is based on the CAMELS framework variables. CAMELS is an abbreviation for: capital adequacy (C), asset (A), management (M), earnings (E), liquidity (L) and sensitivity to market risk (S). Based on these terminologies, a couple of variables should be selected, such as capital asset ratio, non-performing loan, cost income ratio, industry production index, non-interest income, reserve of gold, inflation, stock turnover ratio, real interest rate as component series and return on equity (RoE) as reference series to identify the turning points of economic vulnerability in the banking sector in Bangladesh. Thus, by forecasting the directional changes it could make policymakers aware of changes in the financial markets and banking economy and allow them to undertake preventive steps for remedial purposes. The constructed MPI should have a remarkable lead time of about not less than 6 months on average in case of prediction against the leading for reference Series.By mending the financial efficacy of investment banks. Bangladesh also should improve their corresponding banking system to implement these suggestions.  

scholarly journals Effects of banking regulation on the performance of the banking sector: Evidence of banks in the Western Balkans

Bankarstvo ◽  
2021 ◽  
Vol 50 (3) ◽  
pp. 36-72
Author(s):  
Almir Alihodžić
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Random Effect ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Western Balkans ◽  
Return On Assets ◽  
Variable Size ◽  
Return On Equity ◽  
Capital Adequacy Ratio

The main objective of this quantitative study is to examine the relationship between the following independent variables: capital adequacy ratio (CAR), liquid assets to total assets (LATA) and bank size (BS) and dependent variables: return on assets (ROA), credit worthiness indicator (Zscore) and return on equity (ROE) for selected Western Balkan bank countries. This model was estimated using a panel data methodology based on the assumption of a fixed and a random effect as decided in the Hausman test. The results showed that the variable size of the bank (BS) has a positive effect on the return on assets of banks in the Western Balkans, while the variable liquid assets to total assets (LATA) and capital adequacy ratio (CAR) have a negative impact. The results also showed that the variable share of liquid assets in total assets has a positive impact on the creditworthiness indicator of banks in the Western Balkans (ZScore). The third result is the variable return on equity (ROE) and it had the strongest positive impact with the independent variable size of the bank.

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