scholarly journals Bank-Specific and Macroeconomic Determinants of Commercial Banks Profitability in Ghana

2016 ◽  
Vol 3 (2) ◽  
pp. 89 ◽  
Author(s):  
Ibrahim Nandom Yakubu
Keyword(s):  
Asset Management ◽  
Commercial Banks ◽  
Least Square ◽  
Capital Adequacy ◽  
Superior Performance ◽  
Macroeconomic Factors ◽  
Ordinary Least Square ◽  
Specific Factors ◽  
Ordinary Least Square Regression ◽  
Macroeconomic Determinants

This study examines the influence of bank-specific and macroeconomic factors on commercial banks profitability in Ghana. The study employed the ordinary least square regression model to analyse the data obtained from the annual financial statements of five commercial banks from 2010 to 2015. The empirical results suggest that bank size, liquidity, capital adequacy, asset management, expense management, and real interest rate are positively related to profitability. GDP growth and inflation rate on the other hand, are related negatively to profitability. However, only bank size, liquidity, and expense management have a significant effect on commercial banks profitability. It can be observed that commercial banks profitability in Ghana is largely determined by bank-specific factors, whereas macroeconomic factors have an insignificant impact on banks profitability for the period considered. Therefore, it is crucial for management of commercial banks in Ghana to efficiently manage the factors that contribute to their profitability in order to enhance superior performance.

scholarly journals Assessing Banks Internal and Macroeconomic Factors as Determinants of Non- Performing Loans: Evidence from Nepalese Commercial Banks

2018 ◽  
Vol 3 (1) ◽  
pp. 13-32
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Commercial Banks ◽  
National Level ◽  
Least Square ◽  
Capital Adequacy ◽  
Economic Factors ◽  
Return On Assets ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Ordinary Least Square ◽  
Capital Adequacy Ratio

This study has attempted to ascertain the factors affecting to non-performing loans in Nepalese commercial banks using a sample of ten commercial banks for the period of 2013-2017 with 50 observations, a balanced set of panel data. The descriptive and causal comparative research designs have been adopted for the study. The dependent variable was non-performing loans, while independent variables included both bank specific factors; bank size, return on assets, total loan and advance to total deposit ratio, capital adequacy ratio and macro-economic factors; real gross domestic product growth rate and inflation. The existence of high levels of NPLs would hinder the benefits to the county through inefficient financial intermediation. Hence, there is a national level responsibility towards banks, to manage the NPL ratio at an acceptable level. Consequently, it is important to identify “what causes NPLs and significance of these factors on NPLs”. Therefore, this study would help to get an insight on the bank specific and macro-economic factors, which affect NPLs in commercial banks and in which magnitude bank specific or macroeconomic factors contribute to NPLs. The estimated ordinary least square (OLS) regression model reveals that the bank specific: ROA, LTD and CAR and macroeconomic factors GDP have significant impact on nonperforming loan in Nepalese commercial banks.

Loan Loss Provisions and Earnings Management in Malaysian Banking Industry

2013 ◽  
Vol 1 (1) ◽  
pp. 93-104
Author(s):  
Hasni Abdullah ◽  
Imbarine Bujang ◽  
Ismail Ahmad
Keyword(s):  
Earnings Management ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Least Square ◽  
Capital Management ◽  
Loan Loss ◽  
Macroeconomic Factors ◽  
Ordinary Least Square ◽  
Loan Loss Provisions

Objective The main purpose of the study is to investigate the presence of earnings management incentive in affecting the LLP decision of commercial banks in Malaysia, focusing on the relation between loan loss provisions and earnings before tax and provisions. Methodology/Technique This study applies the pooled Ordinary Least Square model in assessing the determinants of the LLP. Findings The empirical findings clearly indicate that the LLP in Malaysian commercial banks is affected by earnings management for that particular period Type of Paper: Empirical paper Novelty : The expansion of the existing research in Malaysia in order to examine the extent to which the Malaysian banks engage in earnings and capital management, extends the period of investigation by considering the recent global financial crisis 2007-2009. Keywords: Loan Loss Provisions; Earnings Management; Capital Management; Macroeconomic Factors; Commercial Banks.

What Are the Leading Bank-Specific and Macroeconomic Factors Influencing Islamic Bank Performance?

2021 ◽  
pp. 153-171
Author(s):  
Mosharrof Hosen
Keyword(s):  
Positive Impact ◽  
Least Square ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Cross Sectional ◽  
Macroeconomic Factors ◽  
Mena Countries ◽  
Ordinary Least Square ◽  
Islamic Bank ◽  
Asset Quality

Despite the proven sustainability and growth of Islamic banks during the financial crisis period, many scholars criticise the current performance of Islamic banks. Therefore, policymakers are continuously getting worried due to inconclusive finding of different research related to Islamic bank profitability. To shed the light of raising concern, this study investigates the issue from considering both macroeconomic and bank-specific factors. The annual cross-sectional data has been collected from 46 Islamic banks in 10 selected MENA countries over the period 2015-2019. The standardized pooled ordinary least square (OLS) approach's findings revealed that bank size, capital adequacy, GDP, and inflation have a significant positive impact on Islamic banks' return on asset, but asset quality has no significant effect on ROA. In contrast, most of the variables have an insignificant effect of ROE. Investors, financial analysts, and policymakers will get benefits from this study's results to secure their investment by successfully controlling the above-mentioned leading factors.

scholarly journals BANK SPECIFIC AND MACRO-ECONOMIC DETERMINANTS OF THE UNITED ARAB EMIRATES COMMERCIAL BANKS PROFITABILITY: A PANEL DATA ANALYSIS

2020 ◽  
Vol 8 (10) ◽  
pp. 661-677
Author(s):  
Jamil Salem Al Zaidanin ◽  
Keyword(s):  
United Arab Emirates ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Economic Determinants ◽  
Return On Equity ◽  
Specific Factors ◽  
Bank Specific Factors

This study attempts to identify the Bank Specific and Macro-economic Determinants of The United Arab Emirates Commercial Banks Profitability measured by Return on Assets, Return on Equity and Net Interest Margin. The study uses bank-specificand microeconomic factors as independentvariables. The bank-specific factors include bank size, capital adequacy, assets quality, liquidity, deposits, diversification ,business mix, and efficiency, while the macroeconomic factors include real Gross Domestic Product growth, Inflation Rate, and Real Interest Rate.Regression models were used to relate bank profitability ratios to the independent variables built on panel data for the period 2013-2019 of sixteen commercial banks operating in the United Arab Emirates.The results of the study show thatassetsize, liquidity, off-balance sheet activities, and diversification have significant impact on profitability as measured by theNet Interest Margin. In addition, loans under follow-up to total loans, and managerial efficiency are found to behighlysignificantvariables of profitability in the context of the United Arab Emirates commercial banks as measured by Return on Assets and Return on Equity. Furthermore, diversification has a significant impact on profitability as measured by Return on Assets. The remaining bank-specific factors (capital adequacy, loans to total assets, liquidity, deposits to assets ratio, and operating expenses to total assets ratio) and macroeconomic factors have no significant effect on bank profitability. The results of the study suggest that banks can improve their profitability through maintaining high operating income, decreasing the size of non-performing loans, full utilization of liquid assets, more concentration on the main activities, efficiently managing their operating expenses, and taking advantage of the Gross Domestic Productgrowth , inflation and Interest Rate changes to improve the banks performance and profitability. In addition, it is recommended to make further studies on the banks performance with an expanded scope which is tobe extended to other industries.

scholarly journals Determinants which Affect Liquid Asset Ratio of Czech and Slovak Commercial Banks

2013 ◽  
Vol 4 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Pavla Vodová
Keyword(s):  
Commercial Banks ◽  
Slovak Republic ◽  
Capital Adequacy ◽  
Macroeconomic Factors ◽  
Liquid Asset ◽  
Panel Data Regression ◽  
Data Regression ◽  
Specific Factors ◽  
Credit Portfolio

The aim of this paper is to find out determinants which affect liquid asset ratio of Czech and Slovak commercial banks. The data cover the period from 2001 to 2010. We consider four bank specific factors and nine macroeconomic factors. Results of panel data regression analysis showed that although Czech Republic and Slovak Republic have a lot in common, different factors determined banks´ liquid assets in individual countries. The liquid asset ratio of Czech banks increases with increase of capital adequacy, with depreciation of Czech koruna and with worsening quality of credit portfolio. Liquidity of Slovak banks decreases with size of the bank, with higher capital adequacy, higher bank liquidity and during periods of financial crisis. Liquidity of Slovak banks is also positively related to economic cycle.

scholarly journals Pengaruh Capital Adequacy Ratio , Biaya Operasional Pendapatan Operasional dan Net Operational Margin terhadap Financing to Deposit Ratio pada Bank Umum Syariah di Indonesia Tahun 2016-2018

2021 ◽  
Vol 1 (1) ◽  
pp. 27-33
Author(s):  
Moch Fajar Suryo Atmojo ◽  
Nurfahmiyati ◽  
Meidy Haviz
Keyword(s):  
Time Series ◽  
Commercial Banks ◽  
Quantitative Research ◽  
Time Series Data ◽  
Secondary Data ◽  
Equation Model ◽  
Least Square ◽  
Capital Adequacy ◽  
Series Data ◽  
Ordinary Least Square

Abstract. Sharia Banking as an economic sub-system certainly will directly or indirectly have an impact on the development and economic growth of a country. Sharia Commercial Bank (BUS) is a bank that conducts business activities based on sharia principles and in its activities provides services in payment traffic as referred to in Act Number 21 of 2008 concerning Sharia Banking. The health of a bank is very important for all parties involved both the owner, manager (management) of the bank, the banking service user community, monetary authorities, and other parties.This study was conducted to examine the effect of CAR, BOPO, and NOM on Financing to Deposit Ratio (FDR) of Sharia Commercial Banks in Indonesia in 2016-2018. This type of research uses quantitative research with a verification approach. The data used are secondary data taken from the FSA using time series data. Data processing uses Eviews version 7.0 with Ordinary Least Square (OLS) method.The results showed that the CAR variable partially had a negative effect and the BOPO and NOM variables had a positive and significant effect on FDR at Islamic Commercial Banks in Indonesia. From the estimation results obtained R-square of 0.733707, which means 73.37 percent variation of changes in Financing to Deposit Ratio (FDR) of Sharia Commercial Banks is explained by variations in changes in CAR, BOPO, and NOM. While the remaining 26.63 percent explained by other variables not included in the equation model.   Abstrak. Perbankan Syariah sebagai suatu sub sistem ekonomi tentunya baik secara langsung maupun tidak langsung akan memberikan dampak terhadap perkembangan dan pertumbuhan ekonomi suatu negara. Bank Umum Syariah (BUS) adalah bank yang menjalankan kegiatan usahanya berdasarkan prinsip syariah dan dalam kegiatannya memberikan jasa dalam lalu lintas pembayaran sebagaimana dimaksud dalam Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah. Kesehatan suatu bank merupakan hal yang sangat penting bagi seluruh pihak yang terkait baik pemilik, pengelola (manajemen) bank, masyarakat pengguna jasa bank, otoritas moneter, serta pihak lainnya. Penelitian ini dilakukan untuk menguji pengaruh CAR, BOPO, dan NOM terhadap Financing to Deposit Ratio (FDR) Bank Umum Syariah di Indonesia Tahun 2016-2018. Jenis penelitian menggunakan penelitian kuantitatif dengan pendekatan verifikatif. Data yang digunakan adalah data sekunder yang diambil dari OJK menggunakan data runtut waktu (time series). Pengolahan data menggunakan program Eviews versi 7.0 dengan metode Ordinary Least Square (OLS). Hasil penelitian menunjukkan variabel CAR secara parsial berpengaruh negatif dan variabel BOPO dan NOM berpengaruh positif dan signifikan terhadap FDR pada Bank Umum Syariah di Indonesia. Dari hasil estimasi diperoleh R-square sebesar 0.733707, yang berarti 73.37 persen variasi perubahan pada Financing to Deposit Ratio (FDR) Bank Umum Syariah dijelaskan oleh variasi perubahan pada CAR, BOPO, dan NOM. Sementara sisanya 26.63 persen diterangkan oleh variabel lain yang tidak masuk ke dalam model persamaan.

scholarly journals Determinants of Non-Performing Financing of Mortgage in Islamic Commercial Banks

2020 ◽  
Vol 4 (2) ◽  
pp. 127
Author(s):  
Rofadatul Hasanah ◽  
Dina Fitrisia Septiarini ◽  
Dian Filianti
Keyword(s):  
Commercial Banks ◽  
Time Series Data ◽  
Negative Influence ◽  
Least Square ◽  
Capital Adequacy ◽  
Series Data ◽  
Return On Assets ◽  
Ordinary Least Square ◽  
Capital Adequacy Ratio ◽  
Saturated Sample

 This study aims to determine the effect of Capital Adequacy Ratio, Return on Assets, BI 7-Day Rate, and Inflation towards Non-Performing Financing Mortgages in Islamic commercial banks in Indonesia. The population of this study is the Islamic commercial banks in the period 2015-2019. The sample used is a saturated sample, which uses all Islamic banks as research samples. This research uses a quantitative approach using time series data. All variables use the percentage of growth and show the results of the level stationary so that the technique used is Ordinary Least Square (OLS) regression analysis which is processed using E-Views 10 software. The results of this study indicate partially the Capital Adequacy Ratio and Return on Assets variables have a negative influence significant to Non-Performing Financing Mortgages. While BI 7-Day Rate and Inflation variables do not influence Non- Performing Financing Mortgages. Nonetheless, Capital Adequacy Ratio, Return on Assets, BI 7-Day Rate, and Inflation simultaneously have a significant effect on the Non-Performing Financing of Mortgages in Islamic commercial banks in Indonesia in the period 2015-2019.

scholarly journals Does Bank Size and Operational Efficiency Matters? An Impact of Financial Gearing and Asset Management on Islamic Bank's Performance in Pakistan

2017 ◽  
Vol 3 (1) ◽  
pp. 63-78
Author(s):  
Rashid Khalil ◽  
Muhammad Azhar Khalil
Keyword(s):  
Asset Management ◽  
Secondary Data ◽  
Least Square ◽  
Operating Efficiency ◽  
Islamic Banks ◽  
Bank Profitability ◽  
Ordinary Least Square ◽  
Specific Factors ◽  
The Impact ◽  
Bank Specific Factors

Purpose: The persistent growth of Islamic banks has been the distinction of the Muslim world financial background in the 1980s and 1990s. Through a network that spans more than 62 countries and an asset base of more than $169 billion; Islamic banks are now performing a progressively more significant role in their particular economies. The core objective of this study is to find the impact of some of the key bank-specific factors (internal determinants) on the profitability of Islamic banks in Pakistan. Factors that opted in this study are bank size, operating efficiency, gearing ratio and asset management. Secondary data was obtained from 5 Islamic banks in Pakistan from year 2007 to 2015. The Ordinary Least Square (OLS) was used to analyze the empirical findings. The estimation results show that bank size significantly and positively influence the bank profitability while the asset management inversely affects the bank profitability. For future studies, it is recommended that more sample size and determinant factors can be included in determining the impact on bank's profitability.

scholarly journals Do Leading Macroeconomic Factors Impact on Optimal Portfolio Return in Indonesia?

2018 ◽  
Vol 9 (1) ◽  
pp. 19
Author(s):  
Bayu Adi Nugroho ◽  
Edhi Juwono ◽  
Inung Wijayanti
Keyword(s):  
Exchange Rate ◽  
Rate Of Change ◽  
Optimal Portfolio ◽  
Least Square ◽  
Macroeconomic Factors ◽  
Ordinary Least Square ◽  
Macroeconomic Indicators ◽  
Ordinary Least Square Regression ◽  
The Impact ◽  
Portfolio Return

There were two objectives in this research. Those were to construct an optimal portfolio and to analyze the impact of inflation, Bank of Indonesia (BI rate), and Rupiah to US Dollars exchange rate to the optimal portfolio return in Indonesia. The constant correlation portfolio model and ordinary least square regression method were implemented. This research used the stocks from the consistently selected stocks in the Bisnis-27 Index from 2012 to 2016. Microsoft Excel 2010 was used to construct an optimal portfolio. Meanwhile, to compute the regression and statistical analysis, SPSS version 20 was utilized. The obtained results show that only the stocks from PT Telekomunikasi Indonesia, PT Kalbe Farma, PT Charoen Pokphand Indonesia, PT Bank Rakyat Indonesia, PT Bank Central Asia, and PT Bank Negara Indonesia are included in the optimal portfolio. In addition, from the three leading macroeconomic indicators, only exchange rate change (Rupiah to US Dollars rate of change) impacts the return of the constant correlation model portfolio in Bisnis-27 Index significantly and negatively.

Tacit knowledge transfer in coopetition

2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Least Square ◽  
Service Firms ◽  
Content Type ◽  
Ordinary Least Square ◽  
Tacit Knowledge Transfer ◽  
Potential Benefits ◽  
Ordinary Least Square Regression ◽  
Empirical Context

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.

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