scholarly journals Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria

2020 ◽  
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Commercial Banks ◽  
Return On Equity ◽  
Price Levels

scholarly journals Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

2021 ◽  
Vol 1 (2) ◽  
pp. 349-361
Author(s):  
Donna Sita Soraya Kristanti Jatmiko ◽  
Djoni Djatnika ◽  
Setiawan Setiawan
Keyword(s):  
Interest Rates ◽  
Federal Reserve ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Capital Adequacy ◽  
Return On Equity ◽  
Vector Error Correction ◽  
The Global Financial Crisis ◽  
Internal And External Factors

The development of banking in a country cannot be separated from internal and external factors that can influence it. The monetary crisis in 1998 and the global financial crisis in 2008 are some examples that show that the banking sector can be affected by the surrounding economic conditions, both from within and outside the country. The purpose of this study is to determine the resilience of Islamic commercial banks in Indonesia if there are shocks that occur in macroeconomics, in this case, namely inflation, exchange rates, Bank Indonesia benchmark interest rate (BI rate), SBIS yields (rSBIS) and Federal Reserve funds interest rates. (FFR). This study uses the Vector Autoregression (VAR) and Vector Error Correction Model (VECM) methods. The conclusion of this study is that Non-Performing Financing (NPF) and Return on Assets (ROA) in Islamic commercial banks in Indonesia tend to be more resistant to fluctuations that occur in domestic macroeconomics and FFR. The Capital Adequacy Ratio (CAR) is relatively stable in responding to a shock, while the Return on Equity (ROE) and Financing Deposit Ratio (FDR) have fluctuated in the long term in other words, they are more vulnerable to shocks and fluctuations that occur in domestic macroeconomic variables and FFR.

العلاقة بين مخاطر السوق والربحية واثرها في القيمة السوقية للمصارف ـــــ دراسة تحليلية لعينة من المصارف العراقية الخاصة

2021 ◽  
Vol 2021 (68) ◽  
pp. 1-21
Author(s):  
م. د صباح حسن العكيلي
Keyword(s):  
Quantitative Analysis ◽  
Exchange Rates ◽  
Interest Rates ◽  
Commercial Banks ◽  
Market Value ◽  
Intermediate Variable ◽  
Market Risks ◽  
Analysis Process ◽  
Independent Variable ◽  
The Relationship

Abstract: The study tried to show the relationship between market risks (fluctuations in exchange rates and interest rates) as an independent variable and profitability as an intermediate variable and the effect of that relationship on the market value of the shares of the banks researched as an approved variable. A set of financial ratios was used in conducting the quantitative analysis process, as the study included a sample of the Iraqi private commercial banks for the period (2015-2018) and the adoption of 2014 as a base year for comparison to reach results that show developments in exchange rates and interest rates that may be exposed to fluctuations and beyond, and conclusions have been reached that show a significant correlation between market risks as an independent variable and banking profitability as an intermediate variable. There is also a significant correlation between market risks and the market value as a dependent variable, in addition to the presence of an effect of that relationship on the market value of bank shares, the study sample.

scholarly journals Impact of Financial Risk Management Practices on Financial Performance: Evidence from Commercial Banks in Botswana

2019 ◽  
Vol 6 (1) ◽  
pp. 25
Author(s):  
Sathyamoorthi C. R. ◽  
Mogotsinyana Mapharing ◽  
Mphoeng Mphoeng ◽  
Mashoko Dzimiri
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Financial Risk ◽  
Management Practices ◽  
Return On Assets ◽  
Financial Risk Management ◽  
Return On Equity ◽  
Total Debt

The study examined the impact of financial risk management practices on the financial performance of commercial banks in Botswana. The study used Return on Asset and Return on Equity to measure financial performance. Inflation, Interest rates, total debt to total assets, total debt to total equity, total equity to total assets and loan deposit ratios were used as proxies for financial risk management. The research population was all the 10 commercial banks in Botswana and the study covered a period of 8 years from 2011 to 2018. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyze the data. The results from regression analysis showed that interest rates had a negative and significant impact on return on assets and on return on equity. On the other hand, total debt to total assets showed a negative and insignificant effect on return on assets. However, total debt to total assets, revealed a positive and insignificant effect on return on equity. The loan deposit ratio indicated a negative and significant impact on return on assets and on return on equity. Findings suggest that banks should strike a proper balance between financial risk management practices and financial performance by engaging in appropriate market, credit, and liquidity risk management practices that will ensure safety for their banks and yield positive profits.

scholarly journals Comparative Analysis of Banking System Profitability in Western Balkan Countries

2019 ◽  
Vol 2 (2) ◽  
pp. p33 ◽  
Author(s):  
Qazim Tmava ◽  
Fahredin Berisha ◽  
Milaim Mehmeti
Keyword(s):  
Comparative Analysis ◽  
Interest Rates ◽  
Commercial Banks ◽  
Direct Investment ◽  
Banking Sector ◽  
Banking System ◽  
Return On Assets ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Balkan Countries

The aim of this paper is to analyze the profitability of the banking sector in the Western Balkan countries. (Note 1) This paper reviews return on assets (ROA) as an indicator of profit and return on equity (ROE) as an indicator of profitability in the banking systems of the respective countries, as well as some other macroeconomic variables that influence them. The main objective of this study is to identify the specific and macroeconomic variables of this industry, that have an impact on the profitability of commercial banks operating in the Western Balkan countries during the 2008-2015 period. Specifically, this paper addresses external indicators (gross domestic product, remittances, foreign direct investment, unemployment), and industry and bank specific indicators (assets, loans, loan-to-deposit ratio, non performing loans and interest rates) that affect the profitability of the banking system in respective countries. Therefore, according to the data generated during the research and the literature review, the profitability of banks measured by the ROA and ROE indicators, regarding the analyzed countries, turns out to be extremely low, especially compared to EU countries where they strive.

scholarly journals Analisa Faktor Eksternal yang Mempengaruhi Tingkat Return on Equity

2020 ◽  
Vol 3 (2) ◽  
pp. 144-154
Author(s):  
Ady Inrawan ◽  
Hery Pandapotan Silitonga ◽  
Acai Sudirman
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Regression Coefficient ◽  
Stock Exchange ◽  
Coefficient Of Determination ◽  
Test Results ◽  
Linear Regression Coefficient ◽  
Return On Equity ◽  
Analysis Techniques ◽  
Inflation Rates

The purpose of this study was to determine the effect of company external factors (inflation, interest rates, and exchange rates) on the ROE level. Associative research is used in this study with a qualitative approach. The object of research in companies of the Basic Industrial and Chemical Sub Sectors listed on the Indonesia Stock Exchange Period 2009 - 2018. Data collection techniques using the documentation method, data analysis techniques assumption of classiation, multiple linear regression, coefficient of determination and hypothesis testing. The results obtained, 1) Inflation, interest rates, exchange rates negatively affect ROE, 2) inflation rates, interest rates, and exchange rates affect ROE of 91.8%, 3) F test results, Inflation Rates, Interest Rates, and Exchange Rates have a significant effect on ROE.

scholarly journals External and Internal Factors Influence to the Return on Equity and Risk Investment in Jakarta Islamic Index (JII)

2017 ◽  
Vol 2 (3) ◽  
pp. 128-135
Author(s):  
Diana Dwi Astuti
Keyword(s):  
Capital Structure ◽  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Jel Classification ◽  
Investment Risk ◽  
Foreign Exchange Rates ◽  
Internal Factors ◽  
Return On Equity ◽  
Risk Investment

Objective - This study aims to analyze the direct influence of external factors (inflation, foreign exchange rates, interest rate of Bank Indonesia) and internal (capital structure, liquidity) on Return On Equity (ROE) in companies that went public in Jakarta Islamic Index, analyze the indirect influence of external and internal factors on the risk of investing in companies that go public in Jakarta Islamic Index, analyze the effect of ROE on the risk investment in companies that go public in Jakarta Islamic Index. Methodology/Technique - The sample used 10 companies using purposive sampling. Analysis tools using path analysis. Findings – Results showed inflation and exchange rates (foreign exchange rates / USD) no significant effect on ROE and Investment Risk. BI rate has no effect on ROE but significant effect on the risk of investment. Capital structure and liquidity significantly influence the ROE but had no effect on the risk of investment. ROE has no effect on the risk of investment. Novelty - Results of research it pays advisable for investors and prospective investors pay attention to internal factors (capital structure, liquidity and other fundamental factors) companies due to internal factors will affect the profitability of Integration. Type of Paper - Empirical Keywords: Inflation; Exchange Rates; Interest Rates; Capital Structure; Liquidity; ROE; Investment Risk. s JEL Classification: L16, M21, M41.

scholarly journals Determinan Return Saham Industri Otomotif dan Komponen yang Terdaftar di BEI

TRIKONOMIKA ◽  
2015 ◽  
Vol 14 (1) ◽  
pp. 76
Author(s):  
Jaja Suteja ◽  
Patrisius Seran
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Automotive Industry ◽  
Stock Return ◽  
Profit Margin ◽  
Panel Regression ◽  
Return On Equity ◽  
Net Profit ◽  
Equity Ratio

This study is aimed at determining the effect of Return on Equity (ROE), Debt to Equity Ratio (DER), Net Profit Margin (NPM), inflation, exchange rates, and interest rates on stock return of Automotive Industry and its Components. The method used is in this research is data panel regression and the period of research is from 2009 to 2013. The result showed that the ROE, DER, NPM, inflation, exchange rates, and interest rates affect the stock return of Automotive Industry and its Components. Partially, ROE and inflation positively affect the stock return, while the exchange rates and interest rates negatively affect the stock return. The rest, DER and NPM have no effect on stock return.

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