Asset Quality Research Articles

Unlocking sustainability: exploring the nexus of green banking, digital transformation, and financial performance with foreign ownership moderation

The purpose of this research is to empirically test and analyze the impact of green banking, digital transformation, and asset quality on the financial performance of commercial banks with foreign ownership as a moderator. Additionally, it aims to test and analyze the financial performance of sustainable business practices for commercial banks. This study was conducted on commercial banks, specifically focusing on bank groups categorized by core capital levels 3 and 4, listed on the Indonesia Stock Exchange, covering the period from 2017 to 2022. This research employed a judgment sampling technique, encompassing a total of 47 conventional commercial banks. Panel data regression analysis, a data analysis technique, used three variables: the dependent variable, the independent variable, and the moderation variable. The research unveiled that green banking does not appear to have a significant positive impact on financial performance, whereas digital transformation shows a clear positive effect. Non-performing loans, a measure of asset quality, also affect financial performance. Additionally, foreign ownership strengthens the impact of green banking on the financial performance of commercial banks in Indonesia. However, foreign ownership does not enhance the effect of digital transformation. Finally, foreign ownership plays a moderating role in the relationship between asset quality and financial performance in these banks. Ultimately, financial performance has a significant positive influence on sustainable business, suggesting that stronger financial performance contributes to the long-term sustainability of a bank’s operations. The implications of these findings are, first and foremost, that financial institutions should prioritize incorporating sustainable and environmentally friendly practices into their operations to improve their overall financial performance and emphasize the critical role of digital transformation in enhancing financial performance. Consequently, financial institutions are required to allocate resources towards information technology infrastructure and cultivate digital capabilities to adapt to evolving customer demands, such as offering 24/7 banking services from any location. Secondly, financial institutions should not stay far away from digital disruption, but rather embrace it and adapt their strategies accordingly, which includes allocating an adequate budget for IT infrastructure investment and accessing digital services that meet the banking industry’s demands, resulting in effective communication of sustainable practices.

Credit Risk Management Practices and Asset Quality of Deposit Taking Savings and Credit Co-operative Societies in Kenya

Despite the key role DT-SACCOs play towards the growth of Kenyan economy, there is reported increasing occurrence of unsustainable levels of NPLs among these financial institutions. The increasing occurrence of NPLs are significantly obstructing asset quality; highly threatening their survival. This study closed this gap by assessing; risk identification, risk measurement, risk monitoring, and risk governance.as determinants of Kenya DT-SACCOs. The study used descriptive research design with the credit managers of Kenya's 176 licensed DT-SACCOs as the target population. The study employed census because the sample size was modest, easily accessible, and controllable. The data for the study was gathered from primary sources utilizing questionnaire. To create descriptive statistics for the study, the data was analyzed using quantitative analysis. Inferential statistics was then used to obtain a model. The study found that, at 5% significance level, risk identification has positive significant effect on asset quality of DT-SACCOS in Kenya in Kenya (p=0.015; β= 0.337; r= 0.394). risk measurement has a statistically significant and positive effect on asset quality of DT-SACCOS in Kenya (p=0.023; β=0.212; r= 0.358), risk monitoring has positive significant effect on asset quality of DT-SACCOS in Kenya (p= 0.049; β= 0.182; r= 0467) and risk governance positively and significantly affects asset quality of DT-SACCOS in Kenya (p= 0.034; β= 0.236; r= 0.470). The study recommends that the DT-SACCOS in Kenya should; enhance their risk identification policies by ensuring that their procedure authenticity of business proposal and business plan are effective to bale to identify credit risks and net worth of the borrowers, enhance their risk measurement procedure to ensure that there is thorough analysis and appraisal of the borrower before approving loan. enhance their risk monitoring polices and procedures to ensure approval authorities are well specified and empowered, and ensure their risk governance guidelines correctly address credit procedures and policies on review and recommendations and clearly spell out the requirements concerning checks on collateral of the borrower during credit review.

The Influence of Asset Inventory on Optimizing Fixed Assets at PT. Indomarco Prismatama

This study aims to determine the effect of Asset Inventory on Fixed Asset Optimization at PT Indomarco Prismatama. The approach in this research is an associative / quantitative approach. The research was conducted at PT Indomarco Prismatama (Indomaret) which is located at JL Industri, No. 60, Tanjung Morawa B, Tanjung Morawa, Dagang Kerawan, Tj. Morawa, Deli Serdang Regency, North Sumatra 20362, Indonesia. Research started in February 2024 until completion. The population of this study were Indomaret employees who were in charge of recording assets and managing the assets of PT Indomarco Prismatama, 211 people and the number of samples in this study were 138 respondents. The data analysis technique uses simple regression. The results showed that Asset Inventory had a positive and significant effect on Fixed Asset Optimization at PT. Indomarco Prismatama Medan. Optimization of fixed assets at PT Indomarco Prismatama is determined or explained by the independent variable, namely asset inventory while the remaining 35.2% is influenced by other variables not examined in this study such as Maintenance and Maintenance, Employee Training and Competence and Asset Quality.

Delivering insecticide-treated nets (ITNs) through a digitized single-phase door-to-door strategy: lessons from Ondo state, Nigeria

BackgroundThe use of insecticide-treated nets (ITNs) is a strategy recommended by the World Health Organization (WHO) for malaria prevention. In Nigeria, ITNs have been periodically distributed since 2007 through campaigns. Campaign activities and assets are typically tracked using either a paper-based or digital system. In 2017, a digital approach was introduced in Ondo state for tracking attendance at training sessions as part of the ITN campaign. Following the success of the 2017 introduction, subsequent campaigns planned to digitise other aspects of the campaign to improve accountability and efficiency of the ITN distribution. The COVID-19 pandemic posed additional challenges for the ITN distribution planned for 2021 and adaptations were made to the programme strategy to ensure the campaign could go ahead safely. This article presents lessons and experiences from the 2021 ITN distribution campaign in Ondo state, Nigeria.MethodsThe campaign used RedRose, a customised mobile application, to monitor the planning and delivery of the campaign, collect household information including training personnel and tracking the transfer of ITNs between distribution hubs and households. ITNs were delivered through a single-phase door-to-door distribution strategy.ResultsThe campaign distributed 2,965,125 ITNs covering 1,057,577 households across Ondo state. The digital application was beneficial for monitoring the quality of implementation and tracking assets and staff to ensure safety.. The single-phase door-to-door approach was more convenient for households compared to fixed-point distribution but increased the workload for mobilization and distribution teams.ConclusionsSingle phase door-to-door strategy using digital tools was an effective method to increase coverage of ITNs while closely tracking the progress of distribution campaigns. High-quality population data are needed to further improve the planning and implementation of ITN campaigns and other health interventions.

The Impact of Regulatory and Technological Advancements on the Indian Banking Sector: A Comparative Analysis of Leading Banks

Lending or investing in securities, for the purpose of lending or investment, and which is a scheduled bank. "Over the last decade, the Indian banking sector has witnessed several positive developments and notable improvements in regulation. The policymakers, including the Reserve Bank of India Ministry of Finance, and other relevant government and financial sector regulatory entities, have played a crucial role in these advancements. One of the significant achievements in the Indian banking sector is the improvement in key metrics such as growth, profitability, and the management of non-performing assets. The sector has witnessed steady growth, with banks expanding their operations and increasing their market presence. Profitability has also improved, with many banks reporting robust financial performance. Efforts have been made to address the issue of which are loans or assets that have become non-performing or in default. and the government have implemented various measures to enhance asset quality and reduce These include the introduction of mechanisms like asset quality reviews, prompt corrective actions, and the Insolvency and Bankruptcy Code to facilitate the resolution of stressed assets. Moreover, a few banks in India have achieved remarkable success in terms of innovation, growth, and value creation. These banks have demonstrated a strong commitment to customer-centric services, technological advancements, and the adoption of innovative banking practices Overall, the study's findings provide evidence that disinvestment and associated reforms can positively impact the performance and government control may not necessarily need to cease entirely to achieve this improvement. It appears that the statement is discussing the historical context of the Indian banking sector until. During this period, banks in India operated in a protected environment characterized by government control and regulatory restrictions. Administered interest rates, high reserve requirements, and directed credit were prevalent measures implemented by the government. These initiatives have helped them enhance their competitiveness and contribute to the overall growth of the sector. In conclusion, the Indian banking sector has experienced positive transformations over the last decade. The efforts of policymakers and regulatory entities have played a crucial role in improving regulation and promoting growth. The sector now compares favorably with banking sectors in the region in terms of metrics such as growth, profitability. Additionally, certain banks have emerged as leaders in innovation, growth, and value creation, setting a benchmark for others in the industry wider mandate to serve as the principal banking institution in the country. They have introduced digital banking solutions, expanded their product offerings, and implemented efficient risk management systems. Utility services refer to a range of non-core services provided by banks, such as facilitating utility bill payments, offering insurance products, selling mutual funds, providing account services, and other similar activities. These services are aimed at enhancing customer convenience and meeting their diverse financial needs. The history of banking in India dates back to the early when three Presidencies’ These banks were granted the power to issue banknotes. Taken as Alternative parameters for AXIS bank, HDFC bank, ICICI bank, KMB bank, FBL bank, IBL bank, RBL bank, DCB bank, SIBL bank” Evaluation parameter taken as PB Banks, Net profit margin %, Return on long-term fund %, Return on net worth %, Interest income to total funds %, Interest expended to total funds %, Operating expenses to total funds %. the first ranking training is obtained with the lowest quality of compensation.

Examining The Capability Of People's Credit Bank In Langkat District In Overcoming Financial Problems Of Village Communities

This research aims to examine the ability of Rural Banks in Langkat Regency to overcome the financial problems of village communities. One of the very important needs of modern society today is a healthy and reliable financial system. The financial system even has a very basic role for society. Rural Bank is one of the institutions that uses a financial system and can provide financial information in the form of financial reports which can provide information to internal and external parties regarding the company regarding the financial situation and conditions within the company. The subjects in this research were the leadership, accounting department and operations department at the People's Credit Bank in Langkat Regency. The type of research is quantitative research with the data used are financial reports. Data collection techniques are interviews and documentation. Data analysis is CAMEL analysis which is used to assess the level of bank financial health based on capital, quality of productive assets (KAP), management, profitability and liquidity. The research results show that the level of bank financial health in terms of the capital aspect (CAR) in 2016, 2017, 2018 is within healthy criteria. The ratio of classified productive assets to productive assets in 2016, 2017, 2018 shows that the bank is in healthy criteria, while PPAPYD (Provision for Losses of Productive Assets Established) in 2016 is included in unhealthy criteria, whereas in 2017, 2018 the bank is in healthy criteria . The evaluation of management aspects in general management and risk management in 2016, 2017, 2018 shows criteria that are unhealthy and quite healthy. The profitability aspect, namely ROA in 2016, 2017, 2018 shows that the bank is in the healthy category, while BOPO in 2016, 2017, 2018 is included in the healthy criteria. The liquidity aspect, namely the LDR in 2016, 2017, 2018 is included in the healthy criteria, while the cash ratio in 2016, 2017, 2018 is included in the healthy criteria. Growth in the level of bank financial health at PT. BPR Langkat 2016, 2017, 2018 shows that the bank's financial health level is included in the healthy criteria.

An Evaluation of Assets Quality of Selected Public and Private Sector Banks in India

The banks performance within a nation needs to be thoroughly assessed, as it plays a crucial role in influencing the country's economic health. This study aims to analyse and evaluate the asset quality of sample Indian public and private sector banks over a ten-year period, from the year 2013-14 to 2023. Banks were chosen based on their market capitalization and net profit, including major public sector banks such as SBI, BOB, and PNB, alongside leading private sector banks like HDFC, ICICI, and KOTAK Bank. The financial performance analysis employs the CAMEL rating model, focusing on the acronym "E." The CAMEL model parameters include Capital Adequacy Ratios (C), Asset Quality Ratios (A), Management Efficiency Ratios (M), Earnings Quality Ratios (E), and Liquidity Ratios (L). The results are analyzed using descriptive statistics. Data for this study were gathered from bank websites, and the CAMEL Model Asset Quality Ratios were applied after processing and organizing this information. Hypothesis testing involved calculations using simple averages and One-way ANOVA. The analysis of the data indicated that private banks excelled in all the ratios of the Asset Quality Parameter than the public banks. Hypothesis testing showed that there is no significant difference between the performance of public and private sector banks when it comes to the asset quality parameter.

Effect of Asset Quality, Rentability, and Liquidity on the Book Value of Bank Companies Listed on the IDX in 2015-2020

<span lang="EN-US">The purpose of this study is to measure how strong the impact of asset quality, profitability, and liquidity is on a company's book value. This research study utilized secondary data sourced from the Bank's annual reports for 6 years (2015-2020) as a sample of 23 banks equivalent to 138 data which were then analyzed using statistical tests. The results of the data test show that NPL, ROE, ROA, OER, and LDR together have a positive significant impact on the Book Value of Shares, individually NPL has a significant positive impact, ROE has a significant positive impact, ROA has a positive and significant impact, OER has no impact and liquidity has a significant positive impact on the Book Value of Shares. Asset quality, profitability and liquidity scores are indicators of financial performance that can be used by fund owners to determine the condition of a bank's financial health when investing in banking stocks based on the right decisions.</span>

A Descriptive Study on Non-Performing Assets of Indian Banks

Banking Industry is one of the rapidly growing industries in India and is expanding very fast; it is the industry which requires larger amount of workforce, better technological and infrastructure facilities. There has been tremendous increase in the credit flow to various sectors of the economy such as infrastructure, industry, services and agriculture. Even though there is market growth in all the sectors of the economy the quality of assets is deteriorating day by day. NPAs have direct impact on the profitability and the net worth of the banks. The banks have to focus on the problems on NPAs in detail. The balance sheet of the bank is not always based on its balance sheet but it is also based on the level of return on its assets. The level of NPAs best indicates the soundness of banking industry of the country. A healthy financial sector focuses on the growth of the economy, and for the healthy financial sector we need to maintain the financial soundness of the bank. But the bank is overburdened with problem of rising NPAS. The present study focuses on various issues and future impacts of NPAs in Indian Banks. The problem of losses and lower profitability of NPA depends on how risk is managed in their business.

Firm Characteristics, Interest Rate And Financial Performance Of Microfinance Banks In Kenya

Microfinance Banks gives the forte to improve the economic activity of low-income individuals and eliminate poverty, resulting in economic progress. However, microfinance's Banks financial performance in Kenya has declined over time. The objective of this study is to investigate firm characteristics, interest rate and financial performance of microfinance banks in Kenya. The study was grounded on buffer capital, efficiency structure and interest rate parity theories. The study research methodology rested on positivism research philosophy. Research design was explanatory non-experimental design. Secondary panel data was utilized. 13 microfinance banks in Kenya were target. Information was gathered using secondary data sources from microfinance banks accounting report from 2016 to 2022. Data was analysed using descriptive and inferential statistics. The study used multiple regressions and Pearson’s Product Moment Correlation analysis. All ethical considerations were appropriately observed. Findings indicated that adequacy of capital exerts a notable and direct effect on financial performance, underscoring the importance for microfinance banks in Kenya to prioritize maintaining sufficient capital levels to support their overall stability and financial outcomes. Conversely, quality of asset demonstrates a significant and adverse influence on performance financially, highlighting the need for microfinance banks to enhance their credit assessment processes to ensure the quality of their loan portfolios. The research revealed that efficiency of management has an insignificant direct influence on financial performance of Microfinance banks. To address this, microfinance banks are advised to invest in comprehensive management training programs and capacitybuilding initiatives to improve operational effectiveness and decision-making processes. Earning ability, on the other hand, exhibits a considerable and direct influence on financial performance. Microfinance banks should thus focus on continuous innovation of their products and services to enhance their earning potential and overall financial outcomes. Liquidity levels exhibit an insignificant and inverse effect on the financial performance outcomes. To mitigate potential risks, microfinance banks should establish comprehensive policies and procedures to monitor and manage liquidity effectively. Interestingly, the study reveals that the connection concerning firm-level attributes and financial outcomes for microfinance institutions in Kenya does not appear to be subject to a substantial moderating influence from interest rate movements. Therefore, the survey recommends that microfinance banks concentrate on improving governance structures, operational efficiency, risk management practices, and asset quality. This can be achieved through capacity-building programs, training initiatives, and adopting best practices from successful microfinance institutions. Strengthening these firm characteristics will enable microfinance banks to enhance their financial performance, irrespective of interest rate fluctuations

A HOLISTIC APPROACH TO THE BANKING SECTOR: PERFORMANCE AND EFFICIENCY ANALYSIS OF TURKISH BANKS USING CoCoSo AND DEA METHODS

The banking sector is a vital component of global economies, playing a critical role in ensuring financial stability by gathering savings, providing credit, and facilitating various financial transactions. Banks not only support economic growth but also act as intermediaries between surplus and deficit units within the economy. Therefore, evaluating their financial performance and efficiency is crucial for understanding the overall health of the financial system. This study analyzes the financial performance and efficiency of the top 10 banks in Turkey, which are ranked by asset size, over a 10-year period from 2013 to 2022. Using the Combined Compromise Solution (CoCoSo) method, the study ranks these banks based on various financial criteria, such as capital adequacy, asset quality, liquidity, and profitability. CoCoSo is a multi-criteria decision-making method that allows for comprehensive performance analysis by considering multiple factors simultaneously. In addition to CoCoSo, Data Envelopment Analysis (DEA) is used to evaluate the efficiency of these banks in utilizing their resources to generate financial outputs. The study’s findings reveal that privatelyowned banks, particularly Akbank T.A.Ş., consistently rank at the top in terms of both financial performance and efficiency. Akbank’s strong performance is attributed to its effective resource utilization and strategic management decisions. State-owned banks, on the other hand, generally show lower financial performance, even though they exhibit high efficiency levels. This discrepancy suggests that public banks may be focusing on non-profit-driven projects that contribute to public welfare, which in turn affects their overall financial performance. Foreign-owned banks, such as Garanti Bankası and Denizbank, also demonstrate strong financial performance but show varying degrees of efficiency, with Denizbank being relatively less efficient in resource utilization. By employing both the CoCoSo and DEA methods, this study offers a unique dual-method approach that provides a comprehensive evaluation of the Turkish banking sector. The combination of these two methods allows for a more nuanced understanding of both financial performance and efficiency, offering valuable insights for policymakers, bank management, and researchers. The study not only highlights the strengths and weaknesses of individual banks but also underscores the importance of efficient resource management for sustaining competitive advantage in a highly dynamic banking environment. The results of this study can serve as a robust framework for future research on bank performance evaluation, especially in emerging markets. Moreover, the study’s methodology can be applied to other sectors or countries to provide cross-sectional and time-series analysis, contributing to the broader literature on financial performance and efficiency.

The Impact of U.S. Regulatory Frameworks on Asset Quality in Peer-To-Peer Lending Platforms

The Impact of U.S. Regulatory Frameworks on Asset Quality in Peer-To-Peer Lending Platforms

Saving Honest Entrepreneurs through the Second Chance Policy in Ghana

This paper analyses the existing legal frameworks on insolvency in Ghana and how they sufficiently provide to save honest entrepreneurs during financial reforms. Financial sector reforms are a welcomed mechanism to foster financial sector efficiency for sustainable growth. During the period of decision-making in financial sector reforms, it is expected that some business concerns would have their lifespan terminated. Notwithstanding, recent episodes of financial deregulation have revealed unintended consequences of demobilising the sector which has affected innocent entrepreneurs. The aftermath of the financial sector reforms has passed the Corporate Restructuring and Insolvency Act, 2020 (Act 1015). This paper aims to address the issue of whether or not the existing legal framework benchmarked against the Capital Adequacy, Asset quality, Management, Earnings, Liquidity (CAMEL) framework absolves honest entrepreneurs in such a period as against fraudulent entrepreneurs. The paper adopted the doctrinal legal research approach using distinct research tools including data from primary sources, statutes, journal articles, online resources and other obligatory tools. It finds that recent financial sector reforms did not segregate the fraudulent entrepreneur from honest entrepreneurs to make room for the CAMEL to save the latter. It concludes on how a second chance policy can be developed along with existing statutes to settle and save honest businesses in periods of economic volatility.

Impact of Bank-Specific Factors on Capital Adequacy in the Nigerian Banking Sector: An Empirical Analysis

The study investigates the divergence between the capital adequacy of banks in Nigeria and the Bank for International Settlements' (BIS) global standards for bank capital adequacy. It specifically examines the factors affecting capital adequacy in Nigerian banks. The main objective is to evaluate how specific factors impact capital adequacy within this context. Data spanning from 2012 to 2022 from the Central Bank of Nigeria's Statistical Bulletin was collected for 13 selected deposit money banks in Nigeria. Econometric methods were employed to analyse this data. The findings indicate that asset quality and return on equity (ROE) adversely affect the capital adequacy of Nigerian deposit money banks during the study period. Conversely, bank liquidity, bank size, management efficiency, non-performing loans, and return on assets positively influence bank capital adequacy in Nigeria. It is recommended that particular attention be given to bank liquidity and bank size, as these factors significantly enhance the capital adequacy of Nigerian banks within the reviewed of period

Financial Management and Internal Controls in the Context of Asset Quality: Lessons from U.S. Peer-To-Peer Lending Platforms

Financial Management and Internal Controls in the Context of Asset Quality: Lessons from U.S. Peer-To-Peer Lending Platforms

Transforming banking: Examining the role of AI technology innovation in boosting banks financial performance

With the ongoing advancement of technology, artificial intelligence is increasingly being integrated into banking and finance, with the transformative potential to reshape the financial performance of economies worldwide. This research investigates the dynamic relationship between banking and finance artificial intelligence technology innovation and banks' financial performance across 20 countries using the feasible generalized least squares and the generalized method of moments techniques. The results show that banking and finance artificial intelligence technology innovation positively impacts banks' return on assets, highlighting its role in enhancing financial performance. The interaction term between artificial intelligence innovation and economic growth emphasizes their collaborative positive impact on financial performance. Mediation analysis highlights information and communication technology development's role in transforming artificial intelligence innovation into improved financial outcomes. Considering lagged effects, initial innovation surges correlate with improved financial performance, but prolonged exposure leads to diminishing returns. Moreover, the findings indicate that non-performing loans negatively affect financial performance, underscoring the importance of asset quality. Additionally, regulatory capital and economic growth are positively associated with financial performance, while government regulations exhibit a negative impact. This study highlights the essential role of artificial intelligence technology innovation in banking and finance, emphasizing the need to consider economic and technological factors for maximizing its benefits in enhancing financial performance. Policy recommendations include promoting an artificial intelligence innovation ecosystem, adapting regulatory frameworks, and investing in information and communication technology infrastructure to harness artificial intelligence innovation's benefits while addressing associated challenges.

Empowering Pesantren as an Anti-Global Climate Change Center in Jember

Global climate change has been considered a more threatening problem to face. In particular, establishing a pesantren-based anti-global climate change center within Al-Qodiri Islamic Boarding School is seen as the mitigation system. As this program is meant to be a community service program, the ABCD community empowerment method was used. The results suggested that: First, in the research planning (define, discovery, dream, and design), the most critical assets to be developed were the human resource assets of the santri (lit. student). The objective is to develop the quality of the santri as the human resource asset to realize the pesantren-based anti-global climate change center—the service programs in the form of counseling, training, and mentoring. Second, the holistic transformation-based service was done through applicative and evaluative stages, which has improved the quality of the human resource assets of Al-Qodiri Islamic Boarding School Community holistically both in the aspects of knowledge, creativity, and ascertaining character awareness to establish an anti-global climate change society.

Bank Balance: A Comparative Study of SBI & HDFC

The research project titled "Bank Balance: A Comparative Study of SBI & HDFC" aims to provide a comprehensive comparison of the financial performance of two of India's leading banks: the State Bank of India (SBI), a prominent public sector bank, and Housing Development Finance Corporation(HDFC) Bank, a major private sector player. The objective is to evaluate their financial health through key metrics such as profitability, asset quality, and operational efficiency, thus informing stakeholders about their competitive positions. Utilizing a quantitative methodology, the study analyzes financial statements and key performance indicators from the fiscal years 2019 to 2024. Data was sourced from official bank reports, regulatory filings, and financial databases, allowing for a robust comparative analysis.

Influence of Asset Quality on the Financial Performance of Insurance Companies in Kenya

The research aimed to investigate the influence of asset quality on the financial performance of insurance companies. The study was anchored on the efficiency structure theory. Positivism research philosophy was employed with a descriptive research design that targeted a population of 56 general insurance and life insurance firms in Kenya. Secondary balanced panel data spanning 15 years from 2008 to 2022 was also used in the study. The secondary data was sourced from the financial statements of the firms and industry publications from the Insurance Regulatory Authority (IRA). The quantitative data collected was analyzed using descriptive statistics inform of percentages, frequencies, mean, and standard deviation. Additionally, a balanced dynamic panel data regression model was performed. Prior to fitting the panel regression model, diagnostic tests were undertaken to evaluate linearity, stationarity, normality of residuals, serial correlation, and homoscedasticity. The research included 41 insurance firms that met the inclusion criteria. The study results determined that asset quality has a statistically significant and negative influence on the financial performance of insurance companies in Kenya (β = -0.1956, t = -2.93, p = 0.003). The study concluded that asset quality is a collective consideration of diversification, liquidity, risk and liability profiles and thus plays a crucial role in influencing profitability. The study recommends that additional regulations should be instituted by the IRA that entail developing a range of targets on each of the aspects of asset quality.

Corporate Governance, Market Competition and Performance of Indian Banks

The purpose of the study is to determine how market competition and corporate governance affect bank performance (measured by profitability and asset quality). Additionally, it seeks to determine how market competition influences the governance and performance link in Indian banks between 2005 and 2022. The study primarily employs a technique of two-step system generalized method of moments, and a propensity score matching technique is applied to support our investigation. The study shows that adhering to corporate governance standards enhances bank profitability and decreases non-performing assets in India, while market concentration adversely impacts bank performance. Furthermore, the study indicates that corporate governance is more significant in low-market competition environments. The study reveals an intriguing ‘substitutive’ link between market competitiveness and corporate governance. Finally, it concludes that effective governance practices such as an effective board, transparency, board committees and shareholder rights are crucial during periods of declining profitability, poor asset quality and bank mergers.