scholarly journals Investigating the Market Interest Rate on Commercial Banks Financial Performance in Bangladesh

2021 ◽  
Vol 5 (1) ◽  
pp. 3-12
Author(s):  
Debashis Saha ◽  
Prodip Chandra Bishwas ◽  
Md. Mustofa Ahmed Sumon
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Market Interest Rate ◽  
The Relationship

The banking sector is the most vital partner of development for countries' economies. It has a remarkable contribution to the country's Gross Domestic Product. This study investigates the relationship between the market interest rate and commercial banks' financial performance. As Bangladesh's banking industry is growing, it is vital to maintain a more robust profitability level for its financial stability and soundness. Banks have some determinants that have a significant impact on their performance. The convenience sampling method is used to select the targeted sample. The study includes the time series data of eight years of fifteen commercial banks listed on the Dhaka Stock Exchange in Bangladesh. Multiple variable linear regression and correlation analysis are performed to examine the relationship of market interest rate with banks' profitability with statistical software, IBM SPSS version 25, and Microsoft excel. The study explored that the market interest rate has a significant positive impact on banks' profitability. It is also found that the lending rate and interest rate spread are significantly correlated with the banks' financial performance. The study recommended that banks make their investment to make a higher profit margin to enhance their management and financial soundness efficiency.

scholarly journals THE RELATIONSHIP BETWEEN MARKET INTEREST RATE AND COMMERCIAL BANK FINANCIAL PERFORMANCE IN BANGLADESH

2021 ◽  
Vol 9 (01) ◽  
pp. 537-543
Author(s):  
Debashis Saha ◽  
◽  
Prodip Chandra Bishwas ◽  
Md. Mustofa Ahmed Sumon ◽  
◽  
...  
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Market Interest Rate ◽  
The Relationship

The banking sector is the strongest partner of development for countries economy as it has a remarkable contribution to the countrys Gross Domestic Product. This study aims to find out the relationship between the market interest rate and commercial banks financial performance. As the banking industry of Bangladesh is a growing industry, therefore, it is very necessary to maintain a stronger level of profitability for the banks financial stability and soundness. Banks have some determinants that have a significant impact on their performance. The convenience sampling method is used to select the targeted sample. The study includes the time series data of eight years of fifteen commercial banks that are listed on the Dhaka Stock Exchange in Bangladesh. Multiple variable linear regression and correlation analysis are performed to find out the relationship of market interest rate with banks profitability with the help of statistical software, SPSS 25, and Microsoft excel. The study explored that the market interest rate has a significant positive impact on banks profitability. It is also found that the lending rate and interest rate spread are significantly correlated with the banks financial performance. The study recommended that banks should make their investment in a way so that they can make a higher level of profit margin that can enhance their efficiency of management as well as the financial soundness.

Corporate Social Responsibility and Financial Performance in Nepalese Commercial Banks

2021 ◽  
Vol 1 ◽  
pp. 30-34
Author(s):  
Naba Raj Adhikari
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Joint Venture ◽  
Positive Impact ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

This study aims to identify the relationship between corporate social responsibility and financial performance of commercial banks in Nepal. Out of the 28 commercial banks under the population, only 6 banks were selected as the sample for the study through purposive sampling technique comprising 2 government owned, 2 joint venture and 2 private commercial banks covering financial year ranges from 2016/17 to 2018/2019. The results indicate that CSR exerts positive impact on financial performance of the Nepalese government owned banks and provides great insights for management, to integrate the CSR with strategic intent of the business. In contrary it revealed negative impact on financial performance in joint venture banks. Furthermore CSR have significantly low positive impact on financial performance. The study concluded that the relationship between CSR and firm financial performance differs in every category of Nepalese commercial banks. This study can be used for further research regarding corporate social responsibility and financial performance in cross banking sector as well as cross country comparisons.

scholarly journals Impact of Macro-Economic Variable on Pakistan Stock Exchange KSE-100 Index

2021 ◽  
Vol 2 (3) ◽  
pp. 17-23
Author(s):  
Muhammad Faisal Hassan ◽  
Hashim Bin Jusoh ◽  
Sajjad Khan ◽  
Fahad Ali Khan ◽  
Muhammad Naseem ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Time Series Data ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Short Run ◽  
The Impact ◽  
Adf Test

The researcher investigates the Impact of inflation, exchange rate and interest rate on Pakistan stock Exchange performance KSE-100 index by using monthly time series data which covers the period of 2013 to 2020. The econometrics techniques which are employed includes ADF test, Ordinary Least squares regression Model, testing for Multi-collinearity, Residual analysis serial correlation, testing for co-integration, Error correction model (ECM), variance decomposition (VAR) and Pair wise granger causality test. The results indicate that there is positive impact of exchange rate on PSX 100 index and the impact of inflation and interest rate is fond negative but inflation have insignificant relationship with PSX 100 index and the other two relationships are found significant. From the ECM result it is found that in short run 20% of the variation in dependent variable is due to inflation, exchange rate and interest rate and 80% variation is unexplained in short run. Form the results of VAR test it is concluded that exchange rate 1.67, inflation 14.25%, and interest rate 3.90% variation cause in PSX 100 index performance due to these three independent variables.

scholarly journals Value Creation in the Listed Banks: Do Governance Matter?

2020 ◽  
Vol 21 (2) ◽  
pp. 917-930
Author(s):  
Abdul Mongid ◽  
R. R Iramani ◽  
Muazaroh Muazaroh
Keyword(s):  
Value Creation ◽  
Commercial Banks ◽  
Financial Stability ◽  
Positive Impact ◽  
Prudential Supervision ◽  
Negative Effect ◽  
Governance Practice ◽  
Bank Governance ◽  
And Performance ◽  
The Relationship

We assess the relationship between bank governance practice (GCG), efficiency, capital and risk on value creation in a sample of Indonesia commercial banks using the balance panel methodology. Our results suggest that GCG has a positive impact on value creation and performance. We also find that higher interest margin eventually becomes more profitable, better capitalized and that higher capital levels tend to have a neutral or negative effect on value creation. Efficiency levels are positive to value creation. These results are generally confirmed by a series of robustness tests. The findings convey potentially important implications for bank prudential supervision and underline the importance of attaining better governance to support sustainability and financial stability objectives.

scholarly journals The Impact of Macroeconomic variables on the credit provided by Saudi Banks: تأثير المتغيرات الاقتصادية الكلية على التمويل المصرفي في المملكة العربية السعودية (دراسة قياسية شملت البيانات من 1970م – 2012م)

2019 ◽  
Vol 3 (3) ◽  
Author(s):  
Eyas Jafar Abdel Rahim
Keyword(s):  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Government Expenditure ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Bank Deposits ◽  
Long Run ◽  
The Impact

The study aimed to examine the impact of macroeconomic variables of the Saudi economy as in Gross Domestic Product (GDP), Government Expenditure (G), Economic Openness (OPE), Inflation Rate (CPI) and the Bank Deposits (DS) on the credit provided by Saudi banks (BF), on annual time series data between 1970-2012. To investigate this relationship, the study used Autoregressive Distributed Lag method (ARDL) to measure the long-run and short-run impact, At that the E-views 8.1 has been used for analyze the cointegration,the diagnostic, the reliability - stability tests, and the forecasting behavior of the model. The study found that (BF) is affected positively by (GDP) growth rate in the long-run. Also the (BF) has been affected negatively in the short and long-run by inflation rates (CPI) and government expenditure (G). Consequently the Contractionary Fiscal Policy in recent period will not lead to reduce the financial performance of Saudi banks, and the growth of (GDP) in the future will have positive impact on the financing capacity of the Saudi banking sector.

scholarly journals Tegar Prasetya Analysis of Macroeconomic Influence Return on Assets Banking Study on Conventional Commercial Banks in Indonesia for the Year 2018–2020

2021 ◽  
Vol 6 (5) ◽  
pp. 268-275
Author(s):  
Tegar Prasetya ◽  
Hakiman Thamrin
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Commercial Banks ◽  
Time Series Data ◽  
Series Data ◽  
Analysis Tool ◽  
Return On Assets ◽  
Macroeconomic Variables ◽  
The Exchange Rate ◽  
The Interest Rate

This study aims to analyze the effect of macroeconomic variables on the return on banking assets. The data processing method used by the researcher is using the Vector Error Correction Model (VECM) as a data analysis tool and this study confirms that the extent to which it examines the positive and significant influence between macroeconomic variables on the return on banking assets. The data obtained is secondary data based on financial statements within a period of 3 years using monthly time series data. The results of this study indicate that there is a positive and significant effect on the exchange rate and CPI variables while it is negative and significant on the inflation, interest rate and IPI variables resulting from the long-term VECM estimation. While the results show that there is a positive and significant effect on the interest rate and CPI variables and a significant negative on the inflation variable, positive and insignificant on the exchange rate variable, negative and insignificant on the IPI variable on the ROA of the short-term VECM estimation results. The results of the measurement of the composition or contribution of the influence of the independent variable on the dependent variable show the interest rate variable with a value of 4.11% in the 10th period obtained through the results of the decomposition variance (VD) test on the return on assets (ROA) of banking studies at Conventional Commercial Banks in Indonesia.

Accounting Information and Value Relevance in an Economy Under Recession: The Nigeria Experience

2018 ◽  
Vol 2 (1) ◽  
pp. 68-80
Author(s):  
G. N. Ogbonna ◽  
Alasin Captain Briggs
Keyword(s):  
Cash Flow ◽  
Commercial Banks ◽  
Time Series Data ◽  
Value Relevance ◽  
Accounting Information ◽  
Series Data ◽  
Leverage Ratio ◽  
Earnings Per Share ◽  
The Relationship ◽  
F Statistics

This study examined accounting information system and value relevance in accounting in an emerging economy under recession. The objective was to examine the relationship between accounting information and value relevance of commercial banks. Time series data was sourced from the financial statements and annual reports of quoted commercial banks from 2000-2015. Earnings per share and dividend per share was modeled as the function of ordinary share capital, book value of equity, earnings before interest and tax, market value of equity, cash flow and leverage ratio. Multiple regressions were formulated to explore the relationship between the variables. Model I  found that all the independent variables have positive relationship with earnings per share while model II found that cash flow and leverage ratio have  negative effect on dividend per share. The regression summary prove that model I have an R2 of 72.7% and 62.3%, f-statistics of 7.007 and probability of 0.000162 while model II found an R2 of 75.9% and 66.7%, f-statistics of 8.293, probability of 0.000049. From the above, we conclude that accounting information have significant relationship with value relevance among the commercial banks. The study recommend well formulated policies for the validity of accounting information that can enhance value relevance.

scholarly journals The Empirical Research on Causal Relationship Between Export and Foreign Investments in the Economy of Uzbekistan Based on Granger Test

2019 ◽  
Vol 9 (1) ◽  
pp. 4631-4635
Keyword(s):  
Time Series Data ◽  
Positive Impact ◽  
Sufficient Evidence ◽  
Series Data ◽  
Foreign Investments ◽  
Causality Test ◽  
Export Volume ◽  
Relevant Topic ◽  
The Government ◽  
The Relationship

The relationship between export and foreign investments is becoming more and more relevant topic in the economies of many countries in the world. This relationship, its direction and mechanism are, particularly crucial for emerging markets. This paper investigates the direction of the relationship between the export and foreign investments of Uzbekistan based on the data on previous years. Since the government have been reforming the macroeconomic policy of Uzbekistan gradually towards openness in recent years, it is very important to find the direction of the association before forming national strategy to encourage the export of the country and to attract foreign investments to the country. In this study Granger causality test is used to determine the direction of the relationship using time series data from 2005 to 2017. With respect to the findings of the study, it can be seen that the volume of export has positive impact on the foreign investments. However, there is no sufficient evidence to support the idea that foreign investment has significant impact on the volume of export. The results conclude that in Uzbekistan, export volume is one of the key factors that have been contributing to the attractiveness of investment climate in recent years

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