scholarly journals Determinants of Capital Adequacy Ratio of Banks in Botswana

2021 ◽  
Vol 13 (6) ◽  
pp. 38
Author(s):  
Hassan Kablay ◽  
Victor Gumbo
Keyword(s):  
Capital Adequacy ◽  
Financial Ratios ◽  
Financial Success ◽  
Return On Equity ◽  
Explanatory Variables ◽  
Independent Variables ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
Equity Ratio ◽  
The Cost

Capital Adequacy Ratio (CAR) plays a very important role in the financial success of banks and acts as a buffer to prevent and absorb any unexpected losses. This study examines explanatory variables that influence CAR for nine banks in Botswana. Multiple linear regression was used for analysis, with CAR as the dependent variable and thirteen financial ratios as the independent variables. The study period is 2015-2019. Based on the data for this period, it was established that out of the thirteen financial ratios utilised, only four were found to have significant impact on the CAR of the nine banks under study, which are: Asset to Equity Ratio (A E), Return on Equity (ROE), Non-Performing Loans Ratio (NPL RATIO) and the Cost-to-Income Ratio (C I). The A E Ratio was found to be the most influential driver of the CAR and the NPL Ratio was found to be the least influential driver of the CAR for the banks under study.

scholarly journals Comparative Study : Determinant On Banking Profitability Between Buku 4 And Buku 3 Bank In Indonesia

2017 ◽  
Vol 2 (1) ◽  
pp. 92
Author(s):  
Andy Setiawan ◽  
Bambang Hermanto
Keyword(s):  
Capital Adequacy ◽  
Operating Expense ◽  
Return On Equity ◽  
Operating Income ◽  
Independent Variables ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
Independent Variable ◽  
Period Data

This research is performed on order to analyze the influence of Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Operating Expense to Operating Income Ratio (OEOI) as independent variable toward Return on Asset (ROA) and Return on Equity (ROE) as dependent variable. Sample for this research is all of BUKU 4 banks and seven banks on BUKU 3 banks  in Indonesia in 2006-2015 period. Data analysis with multi liniear regression. The result of  this research shows that all of independent variables have significant influence on ROA and ROE simultaneously.  NIM has partially significant effect on profitability both in BUKU 3 and BUKU 4 banks but other variables have various effect on profitability. The amount of the contribution or influence independent variables to ROA are 64,7%  in BUKU 3 banks and 90,4% on BUKU 4 banks. Meanwhile contribution of independent variables to ROE are 55,4% in BUKU 3 banks and 74,1% in BUKU 4 banks.  

Comparative analysis of Financial performance of HDFC and SBI bank on the basis of Ratio analysis

2021 ◽  
pp. 111-114
Author(s):  
Reetika Verma
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Ratio Analysis ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Equity Ratio ◽  
Accounting Ratios

The banking sector in any economy plays a significant role in its growth and development. This paper is based on financial performance analysis of two leading banks of India. This paper aims to evaluate financial performance of HDFC and SBI bank on the basis of accounting ratios and also to study the functioning of the Indian banking system [6]. In this paper different ratios of both the banks are compared. Capital adequacy ratio, debt equity ratio, leverage ratios, profit and loss account ratios, net interest margin ratio, return on equity and other ratios are used to compare the performance of both the banks. This research is based on the data collected from financial statements of the banks. The performance of both the banks are compared from the year 2015 to 2020. It is observed that performance of HDFC is better than SBI not only in terms of ratio analysis but also in terms of customer satisfaction.

scholarly journals An Empirical Study on the Default Prediction Model in Small and Medium-Sized Enterprises Using Financial Ratios

2020 ◽  
Vol 11 (2) ◽  
pp. 129
Author(s):  
Changyong Yang ◽  
Yen-yoo You
Keyword(s):  
Prediction Model ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Investment Efficiency ◽  
Cost Burden ◽  
Financial Cost ◽  
Operating Profit ◽  
Default Prediction ◽  
Capital Adequacy Ratio ◽  
Equity Ratio

Background/Objectives: There were many studies and empirical analysis of the default prediction model using the financial ratios of large companies, such as listed companies, but despite the large impact on the national economy, there was not much research on small and medium-sized enterprises due to lack of data, and it was also limited. Therefore, we studied the default prediction model of small and medium-sized enterprises through empirical analysis.Methods/Statistical analysis: The nine financial ratios that were estimated to have a high level of default prediction power are used in the screening of guarantee support by the Korea Credit Guarantee Fund, a public institution that supports small and medium-sized enterprises comprehensively, were verified through discriminant analysis to determine whether there was a significant difference between the default companies and the normal companies. Between 2014 and 2016, 429 companies that took out loans with support from the Korea Credit Guarantee Fund were analyzed by using the statistical program SPSS 22.Findings: The nine financial ratios (capital adequacy ratio, debt to equity ratio, total borrowings to total assets, ratio of operating profit to total capitals, ratio operating profit to sales, financial cost burden ratio, total assets turnover ratio, total capitals investment efficiency, cash flow to current liabilities) were useful in combining to distinguish between default and normal companies. All nine financial ratios were significant in distinguishing between default and normal companies. The discriminant power was significant in order of financial cost burden ratio, ratio of operating profit to total capitals, ratio of operating profit to sales, capital adequacy ratio, debt to equity ratio, total borrowings to total assets, cash flow to current liabilities, total capitals investment efficiency, and total assets turnover ratio.Improvements/Applications: This study provided a default prediction model in small and medium-sized enterprises by conducting empirical analysis of small and medium-sized enterprises. It can be said that it is meaningful to be able to use this study model as an indicator to predict the default of small and medium-sized enterprises and to proactively manage the negative impact on the national economy.

scholarly journals Loan To Deposit Ratio, Capital Adequacy Ratio, Return On Equity Dan Bopo Dalam Menilai Kinerja Keuangan Pt. Bank Bni Syariah

2019 ◽  
Vol 4 (2) ◽  
pp. 217
Author(s):  
Rinto Noviantoro ◽  
Herlin Herlin
Keyword(s):  
Data Collection ◽  
Financial Performance ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Balance Sheets ◽  
Return On Equity ◽  
Capital Adequacy Ratio ◽  
Equity Ratio

Abstract. The purpose of this study is to determine the financial performance of PT. Bank BNI Syariah. The method of collecting data in this study is documentation. documentation, namely data collection through financial statements in the form of balance sheets and profit / loss statements.  Loan Deposit Ratio (LDR) from 2015-2017 it was 89.14%, 84.01% and 78.89%.the Capital adequacy ratio and the Debt to equity ratio have been determined if the ratio produced is <50% - 75%. Return on equity have been determined to produce a ratio of> 1.5% and at BOPO ≤93.52%. From the perspective of the Capital Adequacy Ratio, in 2015-2017 the value was 38.45%, 64.84% and 38.50%By using BOPO in 2015-2017 the value was 83.21%, 80.75% and 80.91%. While the return on equity in 2015-2017 is 1.18%, 1.18% and 0.93%

scholarly journals Performance Analysis of GCC Banks: A Survey

2020 ◽  
Vol 12 (1) ◽  
pp. 357
Author(s):  
Manuel Fernandez ◽  
Luluwa Juma ◽  
Hanan Alkharoossi ◽  
Robinson Joseph
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Total Asset ◽  
Return On Equity ◽  
Economic Role ◽  
Gcc Countries ◽  
Capital Adequacy Ratio ◽  
Net Profit ◽  
Income Ratio ◽  
National Bank

The banking sector plays an essential economic role in providing financial intermediation and economic acceleration by converting deposits into productive investments. A strong banking sector can deal with any crisis and contribute abundantly to the stabilization of the economy. GCC is home to one of the fastest increasing banking sectors in the world. The objective of this study is to identify the country that has the best-performing banking sector in the GCC and to rank the best-performing banks in the GCC based on different parameters like the total asset, net profit, return on asset (ROA), return on equity (ROE), capital adequacy ratio and cost-to-income ratio. The study includes all the 55 listed banks from the GCC countries. The study revealed that Emirates NBD from the UAE is at the top rank under Net Profit and ROE, the second rank in ROA, and the third rank in Total Assets. Qatar National Bank from Qatar has been ranked the best under the category Total Assets, rank two under net profit, rank four in ROE, and cost-to-income ratio. The National Commercial Bank from Saudi Arabia was ranked third in ROE and ROA and rank four under Total Asset and Net Profit.

scholarly journals Investigating the relationship between credit risk indicators and timely fulfillment of the customers' obligations (a case study of bank sepah branches in east Azerbaijan and Ardabil regions)

2017 ◽  
Vol 5 (2) ◽  
pp. 80
Author(s):  
Dariosh Azimi ◽  
Younes Badavar Nahandi
Keyword(s):  
Credit Risk ◽  
Financial Statements ◽  
Financial Ratios ◽  
Risk Indicators ◽  
Return On Equity ◽  
Explanatory Variables ◽  
Equity Ratio ◽  
Credit Data ◽  
East Azerbaijan ◽  
The Relationship

This research was conducted with the aim to investigate and identify the relationship between credit risk indicators and timely fulfillment of the legal customers’ obligations of Sepah Bank. To do this, credit data and financial ratios of 370 cases of Sepah’s Bank legal customers who had used credit services of Sepah Bank branches in East Azerbaijan and Ardabil regions during a period from 2012-2014 were collected. In this respect, data related to 27 financial ratios as explanatory variables of 370 cases of the mentioned sample were extracted from their credit files and were selected to be tested after performing required refinement and classifying in two groups of extracted data from audited and unaudited financial statements. Then the relationships between these variables and timely fulfillment of obligations were investigated using logistic regression method and considering the significance of the independent variables at 95% confidence level. The results of the research showed that accounting, current, and acid test ratios, working capital, return on total assets, return on equity and gross profit to sell listed in unaudited financial statements group and current ratio/ liquidity ratio, current assets ratio, accounts receivable turnover ratio, return on total assets, debt-to-equity ratio, debt to asset ratio, current debts to equity ratio listed in audited financial statements group have a significant relationship with timely fulfillment of the customers' obligations.

scholarly journals PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM 10 BANK TERKEMUKA DI INDONESIA

2017 ◽  
Vol 19 (2) ◽  
pp. 179
Author(s):  
Indra Satria ◽  
Iha Haryani Hatta
Keyword(s):  
Central Asia ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Capital Adequacy Ratio ◽  
The Impact

Penelitian ini bertujuan untuk mengetahui dampak rasio keuangan terhadap harga saham sepuluh bank terkemuka di Indonesia. Penelitian ini menggunakan metode purposive sampling untuk sepuluh bank yang go public di Bursa Efek Indonesia periode 2013-2014 dengan kriteria berikut : (1) memiliki aset dengan jumlah terbesar pada tahun 2013-2014 (2) memiliki informasi rasio keuangan pada tahun 2013-2014 (3) tidak terjadi pemecahan saham pada tahun 2013-2014 (4) hasil pengolahan data statistiknya memenuhi uji asumsi klasik. Berdasarkan kriteria itu, maka jumlah bank yang terpilih adalah Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Tabungan Negara (Persero) Tbk dan Bank International Indonesia Tbk. Variabel tidak bebas dalam penelitian ini adalah harga saham, sementara variabel terikat adalah Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data dianalisis dengan menggunakan analisa regresi linier berganda. Hasil penelitian menunjukkan bahwa variabel bebas (LDR, NPL, CAR, and ROE) secara simultan berpengaruh signifikan terhadap harga saham. Secara parsial, LDR, CAR dan ROE berpengaruh signifikan terhadap harga saham. Sementara, NPL tidak berpengaruh terhadap harga saham.This research is to determine the impact of financial ratios on the stock price of ten leading banks in Indonesia. This research using a purposive sampling method for the ten banks that listed on the Indonesian Stock Exchange in the years 2013-2014 with the following criteria : (1) has assets with the largest number in the years 2013-2014 (2) has information about financial ratios in the years 2013-2014 (3) a stock split does not occur in the years 2013-2014 (4) the results of the processing of statistical data meets classical assumption. Based on the criteria, the then banks selected are Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Negara Indonesia (Persero) Tbk and Bank International Indonesia Tbk. The dependent variable in this research is the stock price, while the dependent variable are Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data were analyzed using multiple linear regression analysis. The results showed that the independent variables (LDR, NPL, CAR, and ROE) simultaneously significant effect on the stock price. Partially, LDR, CAR and ROE have a significant effect on the stock price. Meanwhile, NPL has no effect on the stock price.

scholarly journals Analysis of the effects of earnings ratio per share, price earnings and return on equity ratio upon the change of shares price at PT. Telekomunikasi Indonesia Tbk years of 2008 - 2017

2019 ◽  
Vol 4 (2) ◽  
pp. 11
Author(s):  
Dimas Ari Darmantyo ◽  
Shelva Kalay Shelwin
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Price Change ◽  
Share Price ◽  
Financial Ratios ◽  
Series Data ◽  
Return On Equity ◽  
Independent Variables ◽  
Equity Ratio ◽  
Company Sector

This research has tested some financial ratios of Earning Per Share, Price Earning Ratio and Return On Equity upon the Change of Shares Price at telecommunication company sector for the period of 2008 to 2017 to know the significance of those ratios, so that, it can be used by the investors to make a decision before investing their money. By having Time Series data of 2008 – 2017, this research has found out that the variables of Earning Per Shares (EPS) and Price Earning Ratio (PER) have significantly affected the change of shares price, but Return On Equity (ROE) has not significantly affected it. This research has indicated that the three independent variables (EPS, PER and ROE) have significantly affected shares price change. Keywords: Finance Ratio, Return On Equity, Earning Per Share, Price Earning Ratio and price of shares

scholarly journals Pengaruh DER, CAR, dan ROE terhadap Peringkat Obligasi Perbankan yang Listing di PT Bursa Efek Indonesia pada Periode 2008-2013

2018 ◽  
Vol 1 (2) ◽  
pp. 50-61
Author(s):  
Debora Tri Oktarina Phety
Keyword(s):  
Logit Model ◽  
Random Sampling ◽  
Sampling Method ◽  
Capital Adequacy ◽  
Bond Rating ◽  
Return On Equity ◽  
Ordered Logit Model ◽  
Capital Adequacy Ratio ◽  
Equity Ratio ◽  
Investment Grade

This study aims to analyze the effect of Debt to Equity Ratio (DER), Capital Adequacy Ratio (CAR) and Return on Equity (ROE) both partially and simultaneously to bank bond ratings. Bond rating agencies are needed to assess the performance of banks that issue bonds by providing information about the quality and risk of bonds. The phenomenon in Indonesia occurs when several issuers fail to pay but have a bond rating at the investment grade level. The risk of a default on bonds is seen in the case of a failure to pay PT Bank Global Tbk bonds where the Kasnic rating agent gave an A- rating, but when BI announced a freeze on Bank Global's license, the bond rating was reduced to D. This research used Ordered Logit Model (OLM) as a method of data analysis.The random sampling method was carried out as a sampling method. The results of this study showed two things. First, the Capital Adequacy Ratio (CAR) and Return on Equity (ROE) had a positive impact on the bond rating. Second, the Debt to Equity Ratio (DER) had a negative impact on the bond rating. Whilst simultaneously Debt to Equity Ratio (DER), Capital Adequacy Ratio (CAR), and Return on Equity (ROE) affected the bond rating.Penelitian ini bertujuan untuk menganalisis pengaruh Debt to Equity Ratio (DER), Capital Adequacy Ratio (CAR) dan Return on Equity (ROE) baik secara parsial maupun simultan terhadap peringkat obligasi perbankan. Lembaga pemeringkat obligasi sangat diperlukan untuk menilai kinerja bank yang menerbitkan obligasi dengan memberikan informasi mengenai kualitas dan risiko obligasi. Fenomena di Indonesia terjadi saat beberapa emiten mengalami gagal bayar namun memiliki nilai peringkat obligasi yang berada di tingkat investment grade. Adanya risiko obligasi gagal bayar terlihat pada kasus gagal bayar obligasi PT Bank Global Tbk dimana agen pemeringkat Kasnic memberikan peringkat A-, tetapi pada saat BI mengumumkan pembekuan izin Bank Global, peringkat obligasi kemudian diturunkan menjadi D. Penelitian ini menggunakan Ordered Logit Model (OLM) sebagai metode analisis data. Metode random sampling dilakukan sebagai metode pengambilan sampling dalam riset ini. Hasil penelitian ini menunjukkan dua hal. Pertama, Capital Adequacy Ratio (CAR) dan Return on Equity (ROE) memiliki dampak positif terhadap rating obligasi. Terakhir, Debt to Equity Ratio (DER) memiliki dampak negatif terhadap rating obligasi. Sedangkan secara simultan Debt to Equity Ratio (DER), Capital Adequacy Ratio (CAR), dan Return on Equity (ROE) berpengaruh terhadap peringkat obligasi.

scholarly journals ANALISIS PENGARUH ROA, ROE, NPL, DAN LDR TERHADAP CAR DI PERBANKAN INDONESIA PERIODE 2004-2015

2016 ◽  
Vol 21 (1) ◽  
pp. 21-29
Author(s):  
Gladis Kusuma Jaya
Keyword(s):  
Data Analysis ◽  
Data Processing ◽  
Commercial Bank ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Return On Equity ◽  
Independent Variables ◽  
Capital Adequacy Ratio

This research aims to analyze whether the Return On Asset (ROA), Return On Equity (ROE), Non Performing Loan (NPL) and Loan to Deposit Ratio (LDR) have significantinfluencesimultaneously and partially toward Capital Adequacy Ratio (CAR). This research classifiedthe verificativeresearch. The population is the national private commercial bank period 2004-2015. Sample was determined by the higher bank asset, a total of fivecompanies. The secondary data were taken such as from financialreport of Banks started from 2004 until 2013. The technique of data analysis in this research using panel regresion analysis. CAR as a dependent variable, ROA, ROE, NPL and LDR as independent variables. Data processing using Eviews 6. The result provides evidance that ROA, ROE, NPL, and LDR have significantinfluencesimultaneously toward CAR. ROA and NPL partially have positive significantinfluencetoward CAR. ROE and LDR partially have negative significantinfluencetoward CAR.

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