ELDERLY DEPENDENCY IN INDIA: FINDINGS FROM CENSUS DATA

The changing demographic profile resulting in ageing of population has thrown many new challenges in the social, economic and political domains in India due to the huge number of aged population. The economic support to the older persons is very much dependent upon the earning ability of the adults. The study mainly focuses on the quantum of dependency burden and assesses the dependency burden in relation to the prevailing economic situation. The old age dependency ratio (OADR) in India estimated as ratio of population 60+ to that of 15-59 years is found to be 0.14 and the old age economic dependency ratio (OAEDR) is much higher at 0.23. Both OADR and OAEDR is highest in Kerala followed by Punjab and Haryana among the major states in India. Elderly dependency is high in most of the states and the economy is not prepared to bear the burden. The Economic Dependency ratio is almost three times the total dependency when we add the number of non workers 15-59 years in the dependent group and eliminate non workers 15-59 years from the economically active group in India. The unemployment rates are found to be quite high in states where the elderly dependency burden is higher. Increased longevity demands higher savings rates to cater to the needs of the old-old group. So the benefit of having a large working age population remains to be tapped through creating more employment opportunities.

Bank soundness and liquidity creation

PurposeThe purpose of this paper is to investigate how much liquidity banks create and how liquidity creation changed over time in the MENA countries and to examine the soundness of banks in these countries based on the CAME rating system, in addition to investigating the relationship between CAME ratios and liquidity creation of these banks.Design/methodology/approachThe study regresses the CAME ratios together with other control variables to model liquidity creation. The robustness of the results is evaluated by using a different measure of liquidity creation and by excluding the observations of the Islamic banks.FindingsThe results show that the CAME rating system, as an indicator of bank soundness, is negatively related to bank liquidity creation. Specifically, capital adequacy, management efficiency and earning ability ratios affect the on-balance sheet components of liquidity creation, while asset quality ratio affects its off-balance sheet component.Practical implicationsThe paper offers insights to regulators and banks managers in terms of better understanding of the negative relationship between CAME rating system and bank liquidity creation.Originality/valueThis paper sheds more light on the relationship between bank soundness and liquidity creation by using the ratios of the CAMEL rating system as an indicator of bank strength and soundness.

Is Risk Based Capital Ratio a True Measure of the Soundness of Banks? Evidence From India

The capital to risk-weighted assets ratio (CRAR) introduced by the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlement (BIS) is widely used as an important measure of the soundness of banks. However, international institutions, academics, and market analytics have increasingly questioned the reliability of the ratio which has been revised a number of times since its inception, to make it more robust. The main objective of the present study is to assess the adequacy of using CRAR as a measure of the soundness of banks. One of the most popular methods used for the analysis of the banks’ financial soundness is CAMELS framework which uses six key dimensions: capital adequacy, asset quality, management quality, earning ability, liquidity, and sensitivity to market risk. Before the introduction of CRAR, the ratio of capital to the total assets was widely used as a measure of capital adequacy in the CAMELS framework. However, when risk-based CRAR was introduced, banking regulators and policymakers started using it in the CAMELS framework for representing capital adequacy. In this paper, we argue that CRAR, as a comprehensive forward-looking measure, encapsulates all the six dimensions of the financial soundness of banks, representing various facets of banking operations, which are covered in the CAMELS framework. We, therefore, develop a theoretical framework to establish the relationship between risk-based CRAR and the important ratios used under the CAMELS framework and then empirically investigate the relationship using a panel regression model using data of Indian banks for the period 2009–2018. The results indicate that CRAR has a significant and theoretically consistent relationship with all six dimensions of the CAMEL framework. The study, therefore, does not only confirm the appropriateness of using CRAR as a measure of the soundness of banks, but also opens up a debate on whether CRAR can be an alternative for the CAMELS framework.

Research on the Development Status and Countermeasures of Enterprise Earnings Management from the Perspective of Big Data

Earnings management plays a leading role in the development of enterprises. With the popularity of big data, when enterprises implement earnings management, analyzing the big data model from the computer can improve the development speed of enterprises. It is not only the key of accounting theory and corporate governance research, but also the top priority in practice. With the continuous development of economy and society in recent years, the problems of interrelated financial have frequently appeared, which leads investors to query the earning ability of related companies. Therefore, this paper studies the current situation of enterprise earnings management from the perspective of big data, and further analyzes the existing problems, and puts forward the countermeasures and suggestions for the relevant enterprise earnings management from the perspective of big data, hoping to standardize the enterprise earnings management behavior and maintain the order of the investment market.

Financial Performance of Commercial Banks in Jordan: Application of the CAMELS Model

The study aims to analyse and rank the financial performance of Jordanian commercial banks using the elements of the CAMELS model. The study relies on a sample of 12 Jordanian commercial banks listed on the Amman Stock Exchange during the period 2016–2020. The study used variables included in the CAMELS model, namely: capital adequacy, asset quality, management efficiency, profitability, liquidity, and sensitivity to market risks. The research results indicate that Jordanian commercial banks enjoy high Capital Adequacy Ratios that exceed the minimum required by the Central Bank of Jordan and the Basel Committee. Jordanian banks have a strong sensitivity to market risks; therefore, they can control market risks and face any risk to which they may be exposed as well as the variety of the securities invested in these banks. Jordanian commercial banks are also characterized by a good earning ability. On the other hand, Jordanian commercial banks have a weak asset quality, and they also maintain weak and insufficient liquidity ratios to meet any unforeseen needs. These banks also show weak management efficacy, and this rating reflects weak management in expense controls.

Analisis Tingkat Kesehatan Bank Dengan Menggunakan Metode Camel (Capital, Asset, Management, Earning, Liquidity) Pada PT. Bank Negara Indonesia (Persero) Tbk Tahun 2015 – 2017

The objective of the research is to evaluate the health level of PT. BankNegara Indonesia, Tbk from 2015 until 2017 by applying CAMEL method (Capital Adequacy Ratio, Asset Quality, Management of Risk, Earning Ability, and Liquidity Sufficiency).The object of this research is the financial report of PT. Bank Negara Indonesia, Tbk during three accounting periods form 2015 until 2017, which consists of balance, loss profit, capital, productive asset quality, earning ability, and liquidity reports. The results of the analysis show that capital, assets, management, earning, and liquidity of PT. Bank Negara Indonesia, Tbk are in a good position. The result of the position are showed in the following statements. It can be seen from the following data: the Capital Adequacy Ratio in 2015 was 25,7%; in 2016 was 18,4%; in 2017 was 18,3%. Asset quality which is based on Return on Asset (ROA), in 2015 was 2.45%, in 2016 was 1.89%, and in 2017 was 1.94%. The Management of Risk based on Net Profit Marjin (NPM), in 2015 was 37,1%, in 2016 was 32,5%, and in 2017 was 35,7%. The Earning ability is also based on the operational cost ratio to the operational ability (BOPO), in 2015 was 50,5%, in 2016 was 192,89%, and in 2017 was 181,31%. The Liquidity is based on Loan to Deposit Ratio (LDR), in 2015 was 6.54%, in 2016 was 7.74%, in 2017 was 3.93%. Even though there are increases and decreases in the result of the calculated ratios of CAMEL Pt. Bank Negara Indonesian is at first rank.

Low Cost Private Schools: How Low Cost Really Are These?

Private schools account for a high and rising share of school enrolment at the elementary level in India. Among various types of private schools, low cost private schools (LCPS) are a segment which charge relatively low fees compared to other private schools. However, the students attending such schools are typically from households in low economic strata and with poor educational levels. This commentary shows how even the “low” fees charged in such schools account for a substantial share of the earnings of these families, given their limited earning ability. The commentary is based on a primary survey based in the Delhi National Capital Region (NCR).

Peter Oakley et al. Projects with People: The Practice of Participation in Rural Development. Geneva: International Labour Office. 1991. xv+294 pp.Price: Swiss Francs 32.50.

Round about the mid-1970s it came to be realised that the fruits of development were not being distributed widely. In fact, in a growing number of instances, the benefits of development were being limited to the elites in the developing countries - the vast majority of the population was being side-stepped. As a consequence of this happening, questions began to be raised: Why had such a situation developed? One possible and quite plausible answer was that the development process had ignored people's participation. This, then, became the keyword. Two strands of thinking developed from the use of this word: the first highlighted the inclusion of human resources in the process of development; the second was more political in nature because poor people have very little say in the matters that influence their earning ability. To surmount this situation requires a structural change by which the poor can be directly included in the development process, so that they will gain some control over the resources, which would then enable them to have a higher standard of living.

Interregional Competitive Impact of Urban Influenced Farmland Prices

The paper's hypothesis is that the farmers using land with urban influenced prices are at a competitive disadvantage because their land input cost exceeds it calitialized earning power while land prices for other farmers are based on earning ability. This hypothesis was investigated by comparing rates of return to land in Massachusetts and two non-urban dairy regions in Wisconsin. Both areas have low rates of return compared to contemporary market interest rates with Massachusetts rates somewhat below those in Wisconsin. When additional factors are considered, the hypothesis is weakly supported, at best.