scholarly journals PERFORMANCE MEASUREMENT, GROWTH AND STRUCTURE OF COMMERCIAL BANKS IN EAST AFRICA

2017 ◽  
Vol 1 (5) ◽  
pp. 63
Author(s):  
Dr. Rutto Peter Ketyenya
Keyword(s):  
Performance Measurement ◽  
East Africa ◽  
Commercial Banks ◽  
Secondary Data ◽  
Financial Structure ◽  
Return On Assets ◽  
Policy Makers ◽  
For Profit ◽  
Net Interest Margin ◽  
And Performance

Purpose: The purpose of this study was to analyze Performance Measurement, Growth and Structure of Commercial Banks in East AfricaMethodology: The study used cross country data analysis of 100 commercial banks and collected secondary data from annual published audited financial statements for the period 1997-2011Results: The results indicate that the OPM which combines productivity and profitability captured a high percentage of similar banks when the top 20 commercial banks were ranked; 80% for return on assets, 60% for profit margin and 55% for net interest margin. A positive and significant relationship between economic growth and performance measures was confirmed. Similarly market structure had a positive relationship with the performance. The results further showed an insignificant relationship with financial structure which conforms to the financial structure theory.Policy recommendation: The study recommended that the OPM should enable central banks to assess the performance levels of banks and be able to detect those that are underperforming and take corrective measures to either improve productivity, profitability or both. For policy makers in the EAC secretariat, the measure will enable comparison on the performance of banks in East Africa for subsequent integration to the monetary union

EVALUATION OF BANK PERFORMANCE MEASURES AND PROPOSES A COMMON MEASURE FOR COMMERCIAL BANKS IN THE EAST AFRICAN COMMUNITY (EAC) COUNTRIES

2017 ◽  
Vol 2 (6) ◽  
pp. 60
Author(s):  
Dr. Rutto Peter Ketyenya
Keyword(s):  
Performance Measures ◽  
Commercial Banks ◽  
Secondary Data ◽  
Bank Performance ◽  
East African ◽  
Return On Assets ◽  
Policy Makers ◽  
East African Community ◽  
For Profit ◽  
African Community

Purpose: The purpose of this study was to Evaluate bank performance measures and proposes a common measure for commercial banks in the East African Community (EAC) countries Methodology: The study used cross country data analysis of 100 commercial banks and collected secondary data from annual published audited financial statements for the period 1997-2011Results: The results indicate that the OPM which combines productivity and profitability captured a high percentage of similar banks when the top 20 commercial banks were ranked; 80% for return on assets, 60% for profit margin and 55% for net interest margin.Policy recommendation: The study recommended that OPM will enable central banks to assess the performance levels of banks and be able to detect those that are underperforming and take corrective measures to either improve productivity, profitability or both. For policy makers in the EAC secretariat, the measure will enable comparison on the performance of banks in East Africa for subsequent integration to the monetary union.

scholarly journals ANALISIS KINERJA KEUANGAN BANK UMUM KONVENSIONAL DENGAN ASET TERENDAH DI INDONESIA PERIODE 2014-2017

2019 ◽  
Vol 23 (1) ◽  
pp. 19-28
Author(s):  
Jefri Thomi da Costa Boreel ◽  
Mintarti Ariani ◽  
Bambang Budiarto
Keyword(s):  
Regression Analysis ◽  
Data Analysis ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operating Income ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

This research aims to analyze the payback or Return on Assets (ROA) which has very significant effect against the Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Net Performing Loan (NPL), Net Interest Margin (NIM), and operatingexpenses against the operating income (BOPO). This research uses population of 13 commercial banks with the lowest accounting assets in Indonesia for 2014-2017 period. In this research, the secondary data is taken in the form of the financialstatements of the bank starting from 2014 until 2017. Technique of data analysis in this study uses regression analysis panel where Return on Asset (ROA) as its dependent variabel and the Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Net Performing Loan (NPL), Net Interest Margin (NIM), and operating expenses against operating income (BOPO) as its independent variabel. The results of this research provide evidence that Net Performing Loan (NPL), Net Interest Margin (NIM), and operating expenses against the operating income (BOPO) partially have significant influence towards Return on Asset (ROA) on 13 commercial banks, while Loan to Deposit Ratio (LDR), and the Capital Adequacy Ratio (CAR) partially do not havesignificant influence towards Return on Asset (ROA).

Analyzing the Efficiency of European Banks

2014 ◽  
pp. 1151-1178
Author(s):  
Mehmet Hasan Eken ◽  
Suleyman Kale ◽  
Huseyin Selimler
Keyword(s):  
Commercial Banks ◽  
Data Envelopment ◽  
Return On Assets ◽  
Return On Equity ◽  
Developed Economies ◽  
Risk Increase ◽  
Net Interest Margin ◽  
European Banks ◽  
And Performance ◽  
Profitability Ratios

Basic financial and profitability ratios such as net interest margin, return on assets, and return on equity alone do not measure bank performances effectively as they lack the risks associated. Since the success of banks in managing performance is expected to be largely dependent on the correct pricing and management of risks, a proper measurement of efficiency should include the effects of risks. The purpose of this study is to benchmark risk profiles of European commercial banks and performance indicators during the 2006-2009. The research is implemented based on four models by Data Envelopment Analysis with data of 697 banks from 37 countries. The results suggest that there is an extensive inter- and intra-country risk efficiency of banks. Profitability increase is not always directly proportional to risk increase, and the financial crisis substantially decreased the risk efficiency of banks, especially in 2008 in developed economies.

Analyzing the Efficiency of European Banks

2014 ◽  
pp. 28-55
Author(s):  
Mehmet Hasan Eken ◽  
Suleyman Kale ◽  
Huseyin Selimler
Keyword(s):  
Commercial Banks ◽  
Data Envelopment ◽  
Return On Assets ◽  
Return On Equity ◽  
Developed Economies ◽  
Risk Increase ◽  
Net Interest Margin ◽  
European Banks ◽  
And Performance ◽  
Profitability Ratios

Basic financial and profitability ratios such as net interest margin, return on assets, and return on equity alone do not measure bank performances effectively as they lack the risks associated. Since the success of banks in managing performance is expected to be largely dependent on the correct pricing and management of risks, a proper measurement of efficiency should include the effects of risks. The purpose of this study is to benchmark risk profiles of European commercial banks and performance indicators during the 2006-2009. The research is implemented based on four models by Data Envelopment Analysis with data of 697 banks from 37 countries. The results suggest that there is an extensive inter- and intra-country risk efficiency of banks. Profitability increase is not always directly proportional to risk increase, and the financial crisis substantially decreased the risk efficiency of banks, especially in 2008 in developed economies.

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 How performance measurement influences stakeholders in not-for-profit organizations

2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Institutional Logics ◽  
Performance Goals ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
And Performance ◽  
The Uk

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.

scholarly journals PENGARUH RASIO CAPITAL ADEQUACY, LOAN TO DEPOSIT, NET INTEREST MARGIN TERHADAP PERTUMBUHANLABA (STUDI KASUS PADA BANK UMUM KONVENSIONALYANG TERDAFTAR DI BURSA EFEK INDONESIA)

AKUNTABILITAS ◽  
2019 ◽  
Vol 11 (2) ◽  
pp. 115-126
Author(s):  
Bambang Suryadi ◽  
Lis Djuniar
Keyword(s):  
Commercial Banks ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Test Results ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Research Population ◽  
Profit Growth ◽  
Interest Margin

This study is how Influence Ratio Capital Adequacy Ratio, Loan to Deposit Ratio, Net Interest Margin Against Profit Growth at Conventional Commercial Banks Listed on Indonesia Stock Exchange. the purpose of this study is to analyze the Influence of Capital Adequacy Ratio Ratio, Loan to Deposit Ratio, Net Interest Margin on Profit Growth at Conventional Commercial Banks Listed on Indonesia Stock Exchange. The type of research used is associative research. The research population is conventional commercial bank in Indonesia. The research variables are Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), and Profit Growth. The data used is secondary data. Data collection methods are quantitative. Partial test results show that NIM has a significant effect on Profit Growth, While CAR and LDR have no significant effect to Profit Growth.

scholarly journals Factors affecting net interest margin of joint-stock commercial banks in Vietnam

2017 ◽  
Vol 24 (01) ◽  
pp. 92-103
Author(s):  
An Pham Hoang ◽  
Loan Vo Thi Kim
Keyword(s):  
Commercial Banks ◽  
Secondary Data ◽  
Regression Method ◽  
Factors Affecting ◽  
Managerial Efficiency ◽  
Net Interest Margin ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
Interest Margin

This study analyzes factors affecting net interest margin of joint-stock commercial banks in Vietnam. The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and in-terest rate have positive impacts on net interest margin. In contrast, managerial efficiency has a negative effect on net interest margin. However, bank size and loan to deposit ratio are statistically insig-nificant to net interest margin.

Does Ownership Structure Influence Bank Performance?: Evidence from an Emerging Economy

2018 ◽  
Vol 17 (2_suppl) ◽  
pp. S282-S297 ◽  
Author(s):  
Brijesh K Mishra ◽  
L. V. Ramana
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Panel Data Analysis ◽  
Emerging Economy ◽  
Bank Performance ◽  
Return On Assets ◽  
Net Interest Margin ◽  
Interest Margin

Banks’ ownership and their performance form two important dimensions of the entire gamut of banking function. This article strives to establish a link between the two by studying commercial banks in India. Conducting a panel data analysis of 89 commercial banks over the period from 2008–2009 to 2012–2013, one could observe that ownership indeed mattered when net interest margin (NIM) or per-employee profitability was considered, but when return on assets (ROA) was considered, there was not much of a difference among banks when differentiated on ownership basis.

Determinants of Commercial Banks Profitability: Empirical Evidence from Pakistan

2014 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Waqas Tariq ◽  
Muhammad Usman ◽  
Haseeb Zahid Mir ◽  
Inam Aman ◽  
Imran Ali
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Huge Amount ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Time Period ◽  
Direct Association ◽  
Gross Income ◽  
And Performance ◽  
Comparative Measure

As profitability is a comparative measure that describes the associations of total amount of profit with different factors. Thisstudy examines the influence of commercial banks determinants on the performance of commercial banks in Pakistan over the time period from 2004-2010. Consistency in performance is the basic reason for smooth running and presence of every financial institution.Profitability is the most significant and consistent indicator as it contributes huge amount of profitthat ultimately impacts its performance positively. The commercial bank’s profitability is found out by the return on equity (ROE) and net-interest margin(NIM). Result indicates that the capital strength of a bank is utmost significance in affecting its performance, as a well-capitalized bank is observed to be less risky and such edge lead to high profitability. The assets quality, measured by the loans loss provisions, affects the performance of the banks positively and bank size as deposit indicates direct association with profitability as large banks earn more profit instead of small banks. Inflation and NIGI affects the bank’s profitability inversely as increase inflation affects banks cost that increased and its earning main source is its fee that it charge on its services but free services without any charges decrease in gross income that lead a reduction in profit. This study is important and worthwhile for all commercial banks mangers regarding performance decisions of banks. As the development of the banking sector depends profoundly on strong decision making that leads to the efficiency and performance

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