scholarly journals The Impact of Bank's Asset and Liability Structure on their Profitability Regardless of Monetary Policy and Size: A Panel Analysis

2019 ◽  
Vol 11 (2) ◽  
pp. 186
Author(s):  
Osama Wagdi ◽  
Amira Hasaneen ◽  
Walid Abouzeid
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Cross Section ◽  
Balance Sheet ◽  
Panel Analysis ◽  
Return On Equity ◽  
Liability Structure ◽  
The Impact ◽  
Annual Balance ◽  
Section Analysis

The study examines the impact of bank's asset and liability structure on their profitability without monetary policy and size; the study utilizes panel data with cross section analysis on data of 10 unit banks according to the annual balance sheet & performance. The populations of the study are bank units listed on Egyptian Exchange (EGX), the study’s data collection covered the duration from 2008 till 2016. Eventually, the study ascertained that there is an impact of the bank's asset and liability structure on their profitability according to "Return on Asset" and "Return on Equity"; however, the interprets of bank's asset and liability structure for "Return on Equity" more that to "Return on Asset". Therefore, the banking units should work to maintain the optimal rate of the structure of the bank's assets and liabilities; this may be a potential research scope in banks.

The Channels of Transmission of Monetary Policy

2021 ◽  
pp. 45-88
Author(s):  
Juan Antonio Morales ◽  
Paul Reding
Keyword(s):  
Monetary Policy ◽  
Emerging Market ◽  
Asset Price ◽  
Balance Sheet ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism ◽  
The Interest Rate ◽  
The Impact ◽  
Transmission Of Monetary Policy

This chapter explores the monetary transmission mechanism (MTM) in low financial development countries (LFDCs). It successively discusses the interest rate, asset price, bank credit, balance sheet, expectations, and real balance channels. For each channel, conceptual aspects about how it operates, how it transmits monetary policy impulses to the economy’s financial and real spheres, are first presented. Next, the impact of the specificities of LFDCs on the channel’s strength and reliability are examined and the available empirical evidence is surveyed. The chapter concludes with a global assessment of the effectiveness of the monetary transmission mechanism in LFDCs. Evidence points to a transmission mechanism that is effective although not very strong, and possibly also more uncertain than in advanced and emerging market countries.

Financial Constraints, Monetary Policy Shocks, and the Cross-Section of Equity Returns

2019 ◽  
Vol 33 (9) ◽  
pp. 4367-4402 ◽  
Author(s):  
Sudheer Chava ◽  
Alex Hsu
Keyword(s):  
Monetary Policy ◽  
Cross Section ◽  
Equity Returns ◽  
Monetary Policy Shocks ◽  
Federal Funds ◽  
Federal Funds Rate ◽  
Oxford University ◽  
Policy Shocks ◽  
The Cross ◽  
The Impact

Abstract We analyze the impact ofa unanticipated monetary policy changes on the cross-section of U.S. equity returns. Financially constrained firms earn a significantly lower (higher) return following surprise interest rate increases (decreases) as compared to unconstrained firms. This differential return response between constrained and unconstrained firms appears after a delay of 3 to 4 days. Further, unanticipated Federal funds rate increases are associated with a larger decrease in expected cash flow news, but not discount rate news, for constrained firms relative to unconstrained firms. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

2006 ◽  
Vol 226 (5) ◽  
Author(s):  
Kornelius Kraft ◽  
Marija Ugarkovič
Keyword(s):  
Panel Data ◽  
Capital Market ◽  
Negative Impact ◽  
Supervisory Board ◽  
Limited Liability ◽  
Voting Rights ◽  
Positive Influence ◽  
Return On Equity ◽  
German System ◽  
The Impact

SummaryMany observers regard the German system of codetermination as a very strong intervention into the working of the capital market. With the introduction of the codetermination law in 1976, employee representatives in limited liability companies with more than 2000 employees are entitled to occupy half of the number of seats and are granted nearly 50% of the voting rights on the supervisory board. We investigate the impact of the introduction of the German codetermination law in 1976 which implied an extension of co-determination from third parity to almost parity on return on equity. Our estimations are based on panel data for 179 companies from 1971 to 1976 and from 1981 to 1986, thus allowing for adjustment to the 1976 law. In contrast to frequently raised fears, no negative impact is found. Our empirical results suggest a positive influence from the 1976 strengthening of co-determination law on return on equity.

Euro-area GDP growth will slow in 2019

2019 ◽  
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Balance Sheet ◽  
Lower Growth ◽  
Content Type ◽  
Large Size ◽  
Area Growth ◽  
Risks Assessment ◽  
European Parliament Elections ◽  
The Impact

Subject Reasons behind the euro-area growth slowdown. Significance In its Winter 2019 interim forecasts, the European Commission downgraded its expectations for euro-area growth to 1.3% and 1.6% for 2019 and 2020, respectively, from 1.9% and 1.7% three months earlier. At its January meeting, the ECB Governing Council foreshadowed lower growth, shifting its risks assessment, saying that downside risks will dominate. Impacts The European Parliament elections could have a destabilising impact on growth in some countries. Monetary policy can do nothing to cushion the impact of lower growth caused by trade conflict. In case of recession, monetary policy stimulus will be constrained by the large size of the ECB balance sheet.

Study on Management of Software Engineering Capability in Japan through Cross-Section Analysis and Panel Analysis

2012 ◽  
Vol 601 ◽  
pp. 576-583
Author(s):  
Kadono Yasuo
Keyword(s):  
Quality Assurance ◽  
Project Management ◽  
Software Engineering ◽  
Research And Development ◽  
Human Resource Development ◽  
Cross Section ◽  
Process Improvement ◽  
Panel Analysis ◽  
Management Quality ◽  
Section Analysis

Surveys on software engineering excellence (SEE) were designed and administrated in 2005, 2006, and 2007 in conjunction with the Japanese Ministry of Economy, Trade and Industry. In the survey, the software engineering capability was measured from the seven viewpoints of deliverables, project management, quality assurance, process improvement, research and development, human development, and customer contacts. In the present paper, we present the results of a cross-section analysis and a panel analysis. Through a cross-section analysis of the SEE data, we found superior deliverables and business performance to be significantly correlated with the effort expended on human resource development, quality assurance, research and development, and process improvement. For the panel analysis, we integrated 233 valid responses for the three years into a new database and identified 151 unique IT firms. Based on the results of the panel analysis, first, most SEE factors for a particular year had significant positive influences on the same factors the following year. Second, there were three paths to improving the level of deliverables, namely, through project management, quality assurance, and research and development, in a particular year. Third, some SEE factors had a significant positive influence on different SEE factors in the following year. Finally, several negative paths were observed, which implies that the effort put into a particular factor did not pay off in the short-term.

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 Empirical Assessment on the Impact of Leverage and Capital Adequacy on Performance of Non-Bank Financial Institutions in Bangladesh

2022 ◽  
Vol 8 (2) ◽  
pp. 159-176
Author(s):  
Liton Chandro Sarkar
Keyword(s):  
Panel Data ◽  
Financial Institutions ◽  
Econometric Models ◽  
Capital Adequacy ◽  
Significant Source ◽  
Return On Assets ◽  
Return On Equity ◽  
Empirical Assessment ◽  
The Impact ◽  
Positive Effect

Non-Bank Financial Institutions (NBFIs) epitomize the most significant source of financing in our economy. NBFI is highly levered in nature. This study tries to empirically identify how capital adequacy and leverage impact NBFIs’ performance in Bangladesh. A number of econometric models using panel data from 2009 to 2019 of 23 NBFIs of Bangladesh have been estimated to achieve the objective of this study. In this research, Return on Assets, Return on Equity and Tobin’s Q are used as a measure of NBFIs performance of Bangladesh. According to estimated result it has been found that capital adequacy has a positive effect on profitability of NBFI’s in Bangladesh. However, the research has found conflicting results when impact of leverage on NBFI performance is measured. Taking the empirical findings into consideration, the management of the NBFIs should embrace policies that are likely to help the NBFIs to maintain enough capital. Keywords: leverage, capital adequacy, NBFI performance, profitability, NBFI equity

Absence of price pressures checks central bank hawks

2017 ◽  
Keyword(s):  
Monetary Policy ◽  
Regime Change ◽  
Emerging Market ◽  
Balance Sheet ◽  
Policy Regime ◽  
Bank Of Canada ◽  
Content Type ◽  
Full Swing ◽  
The Impact ◽  
First Time

Subject The impact of persistently low inflation on the pace of monetary policy 'regime change' in most countries. Significance The US Federal Reserve (Fed) published the minutes of its June 14 interest rate-setting meeting on July 5, showing increasing divisions over the pace of tightening as inflation eases. The Fed remains committed to starting to shrink its 4.5-trillion-dollar balance sheet this year, but there are disagreements over the timing of both the unwinding and further rate hikes. Subdued inflation is also constraining the ECB’s plans to withdraw its monetary stimulus, despite speculation about a ‘regime change’ in monetary policy driving the yield on the benchmark 10-year Bund to its highest point since January 2016. Impacts The yield on 10-year US Treasuries has risen since June but remains below its mid-March level when ‘reflation trading’ was in full swing. Emerging market bond funds are vulnerable to tighter policy and suffered outflows for the first time this year in the week ending July 5. The average world oil price has fallen by more than 10% since May to below 50 dollars a barrel amid concerns of a supply glut. The Bank of Canada may raise rates for the first time in nearly seven years on July 12, while the Fed chair will testify before Congress.

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