scholarly journals Banks Performance: Does Treasury Single Account matter? Evidence From Selected Commercial Banks in Tanzania

2021 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Erick Lusekelo Mwambuli ◽  
James Joseph Igoti
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Ordinary Least Squares ◽  
Positive Effects ◽  
Net Interest Margin ◽  
Independent Variable ◽  
Controlling Variables ◽  
The Government ◽  
Set Up ◽  
Interest Margin

This research assess the impacts of treasury single account on the financial performance of selected commercial banks in Tanzania. Data were collected from annual report of fourteen (14) commercial banks and Bank of Tanzania for the period of ten (10) years. The study used net interest margin as a dependent variable, government deposits as independent variable and both bank size and leverage were used as controlling variables. The data were analyzed by both EVIEWS 12 and STATA 16 using an ordinary least squares (OLS) regression model analysis. Our results concludes that treasury single account has impact on banks financial performance, the results shows that the government deposits has a significant positive effects on net interest margin. The possible reason for our results is the fact that Tanzania commercial banks were over relied on government funds rather than to mobilize funds from the un-banked among rural residents. Thus, the study recommend that for the commercial banks to improve their financial performance, they have to redefine the nature of competition, diversify economically and refocus on the original purposes for which they were set up- to collect deposits to customers especially from private sectors and un-banked Tanzanians.

Determinants of Net Interest Margin of Commercial Banks in Vietnam

2015 ◽  
pp. 69-82 ◽  
Author(s):  
Khanh Hoang Trung ◽  
Tra Vu Thi Dan
Keyword(s):  
Commercial Banks ◽  
Global Financial Crisis ◽  
Least Squares Method ◽  
Secondary Data ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Financial Reports ◽  
Net Interest Margin ◽  
The Global Financial Crisis ◽  
Interest Margin

This study provides an insight into the determinants of net interest margin (NIM) of commercial banks in Vietnam during the recession period. We employ secondary data collected from published audited consolidated financial reports of Vietnamese commercial banks from 2008, the year marking the outbreak of the global financial crisis, to the end of 2012. Altogether, the data constitute 175 panel-data observations. The regression using the ordinary least squares method yields the result that operating expense, management quality, risk aversion, and inflation rate have a positive effect on NIM, while the banking sector’s market concentration affects NIM negatively. Afterwards, some policy implications are derived from those findings to mitigate and put NIM under control, so that the efficiency of the financial intermediary system can be developed.

scholarly journals EFFECTS OF INTERVENING LOAN TO DEPOSIT RATIO ON PROFITABILITY

2020 ◽  
Vol 1 (2) ◽  
pp. 239-252
Author(s):  
Laynita Sari ◽  
Renil Septiano
Keyword(s):  
Capital Adequacy ◽  
Return On Assets ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Dependent Variables ◽  
Independent Variable ◽  
The Government ◽  
The Relationship ◽  
Interest Margin

Government banks have a higher level of trust in society, as most of these shares are owned by the Government. Ratio used to assess a bank’s performance is the Return on Asset ratio. Each bank will try to keep its Return on Asset ratio consistently rising and the Non Performing Loan ratio consistently falling. But the phenomenon is that the ratio of Return on Asset and Non Performing Loan at the Government Bank fluctuated from 2014 to 2019. I will therefore examine the factors that affect the ratio of Return on Assets and Non-Performing Loans to government banks. In this study, the ratios used were Non Performing Loan, Net Interest Margin, Capital Adequacy Ratio as an independent variable, Loan to Deposit Ratio as an intervening variable and Return on Asset on its dependent variables. The result that the Variable Loan to Deposit Ratio mediates the relationship between Net Interest Margin and Return on Asset.

scholarly journals CORPORATE GOVERNANCE AND ITS IMPACT ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN GHANA

2021 ◽  
Vol 56 (4) ◽  
pp. 58-69
Author(s):  
Erasmus Yaw Afriyie ◽  
Germain Kofi Acka Aidoo ◽  
Richard Selase Agboga
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Board Composition ◽  
Board Size ◽  
Bank Profitability ◽  
Net Interest Margin ◽  
Income Ratio ◽  
The Cost ◽  
Interest Margin

The paper examines corporate governance and its impact on the financial performance of commercial banks in Ghana. The study employs a sample of twenty commercial banks with one hundred and thirty-eight observations. Data is sourced from the audited financial statements of commercial banks through the Orbis database for seven years, from 2011 to 2017. The study employs return on assets (ROA) as a proxy for bank profitability. Also, the study uses the cost to income ratio, bank size, net interest margin, board composition, bank age, and board size as independent variables. A random-effect and linear regression are applied. The empirical findings reveal that board composition, bank size, and net interest margin significantly impacted bank profitability. However, the cost to income ratio and bank age had a significant negative impact on bank profitability. On the other hand, board size had no significant impact on bank profitability. The study recommends that bank owners appoint experts and an adequate number of independent directors to help reduce conflict of interest and make effective decisions. Furthermore, banks should implement efficient cost-saving mechanisms to cut their overhead costs as enormous overhead costs reduce bank profitability. Banks should periodically organize campaigns on deposit mobilization to increase their assets as huge asset banks have the advantage of diversifying their assets, thus minimizing risk in the volatility period. Finally, banks should develop efficient loan recovery strategies to improve their asset quality, as this significantly impacts banks' net interest margin and profitability.

A Study on Effect of Bancassurance Model on The Financial Performance of Selected Commercial Banks

2019 ◽  
Vol 118 (8) ◽  
pp. 118-125
Author(s):  
K. Pushpa Latha ◽  
Dr. V. Mallikarjuna ◽  
Dr. T. Narayana Reddy
Keyword(s):  
Financial Performance ◽  
Random Sampling ◽  
Commercial Banks ◽  
Simple Random Sampling ◽  
Bank Performance ◽  
Net Interest Margin ◽  
Dependent Variables ◽  
Income Ratio ◽  
Independent Variable ◽  
Selection Of

The main objective of this study was to investigate the effect of Bancassurance model on the financial performance of selected commercial banks. For achieving the objectives data was collected from 10 public sector commercial bank. The selection of banks is based on simple random sampling. Under the study bank performance as dependent variables and Cost-to-income Ratio, Yield on Advances, Net Interest Margin, Cost of Deposits, Yield on Funds are designated as independent variable. The major outcome of the study is Yield on Advances, Cost of Deposits, Yield on Funds, Cost-to-income Ratio significantly improves Bank performance. Except, net Margin not have a significant impact on performance of bank. 

scholarly journals PENGARUH KOMPONEN RISK BASED BANK RATING (RBBR) TERHADAP PROFITABILITAS PERBANKAN

2020 ◽  
Vol 25 (2) ◽  
pp. 44-58
Author(s):  
Anggi Tiara Novira ◽  
Reni Oktavia ◽  
Yuztitya Asmaranti
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Operational Efficiency ◽  
Capital Adequacy ◽  
Efficiency Ratio ◽  
Good Corporate Governance ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

This study aims to analyze the effect of Risk Based Bank Rating (RBBR) component implementation to the financial performance of conventional commercial banks in Indonesia. The RBBR component is presented by using variables: Non Performing Loan, Loan to Deposit Ratio, Good Corporate Governance, Operational Efficiency Ratio, Net Interest Margin, Capital Adequacy Ratio. Meanwhile, financial performance is measured using Return On Assets (ROA). This study used quantitative methods with secondary data obtained from the websites of each conventional commercial bank. The research sample was selected by using purposive sampling in order to obtain 25 conventional commercial banks in Indonesia during 2010-2019. Data analysis used multiple linear regression analysis by IBM SPSS Statistics 26 program. The results of this study indicate that Non Performing Loan (NPL), Good Corporate Governance (GCG), Capital Adequacy Ratio (CAR) have no effect on the financial performance of conventional commercial banks. Meanwhile, the Loan to Deposit Ratio (LDR) and Operational Efficiency Ratio (REO) have a negative effect on the financial performance of conventional commercial banks, and the Net Interest Margin (NIM) has positive effect on the financial performance of conventional commercial banks.

scholarly journals Applying the CAMEL model to assess performance of commercial banks: empirical evidence from Vietnam

2020 ◽  
Vol 15 (2) ◽  
pp. 177-186
Author(s):  
Anh Huu Nguyen ◽  
Hang Thu Nguyen ◽  
Huong Thanh Pham
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
Fixed Effects Model ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Asset Quality ◽  
The Impact

The paper aims to investigate the impact of CAMEL components on the financial performance of commercial banks in Vietnam. Three econometric models are built using four CAMEL’s crucial indicators as independent variables (capital adequacy, asset quality, management effectiveness, bank liquidity) and return on assets (ROA), return on equity (ROE), and net interest margin (NIM) as proxies for commercial banks’ financial performance – dependent variables. The research sample includes 31 Vietnamese commercial banks over the 6-year period, from 2013 to 2018. The results show a better fit of the fixed effects model (FEM) in terms of the research methodology compared to the ordinary least squares (OLS) and random effects model (REM). It was found that capital adequacy, asset quality, liquidity and management efficiency affect the performance of Vietnamese commercial banks. Acknowledgement This research is funded by National Economics University (NEU), Hanoi, Vietnam. The authors thank anonymous referees for their contributions and the NEU for funding this research.

scholarly journals DETERMINANT OF GOVERNMENT BANK PERFORMANCE THROUGH NIM AS INTERVENING

2020 ◽  
Vol 1 (4) ◽  
pp. 619-628
Author(s):  
Laynita Sari ◽  
Nandan Limakrisna ◽  
Renil Septiano
Keyword(s):  
Bank Performance ◽  
Return On Assets ◽  
Net Interest Margin ◽  
Independent Variable ◽  
The Government ◽  
The Relationship ◽  
Interest Margin

A government bank is a bank in which most of its shares are owned by the government. The government bank comprises four banks namely Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Mandiri, and Bank Tabungan Negara. One ratio used to assess a bank’s performance is the Return on Asset ratio. Each bank will try to keep its Return on Asset ratio consistently rising. But the phenomenon is that the Government Bank’s Return on Asset ratio fluctuated from 2014 to 2019. I will therefore examine the factors that affect the ratio of Return on Assets to government banks. In this study, the ratio used was Non Performing Loan as independent variable, Net Interest Margin as intervening variable and Return on Asset on dependent variable. The result that the Net Interest Margin variable does not mediate the relationship between Non Performing Loan and Return on Asset

scholarly journals Factors Affecting Poverty on the Island of Sumatera

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Patria Nagara ◽  
Keyword(s):  
Income Distribution ◽  
Ordinary Least Squares ◽  
Multiple Regression Equation ◽  
Development Programs ◽  
Economic Activities ◽  
Poverty Level ◽  
Factors Affecting ◽  
Poverty And Inequality ◽  
Independent Variable ◽  
The Government

Poverty is a problem faced by many developing countries in general. Poverty is a reflection of the economic activities carried out by a country. The poverty level of a country shows that the development programs implemented by the government are not optimal. This study was conducted to analyze the determinants of poverty in 10 provinces on the island of Sumatra from 2006-2019. Multiple regression equation models were built for this research using the Ordinary Least Squares (OLS) method with the e-views 8 tool. The results show that simultaneously, the independent variable has a significant effect on poverty and partially one variable that does not significantly affect poverty, namely unemployment. An increase in education (literacy rate) and infrastructure (road length) leads to an increase in poverty and inequality in income distribution (the Gini Index), resulting in a decrease in poverty. It is hoped that future researchers will use education, infrastructure, and income distribution variables with different proxies.

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.

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