This paper aims to explore how factors such as age, gender, professional qualifications, and experience of the Chairman of the Board of Directors (COB) and Chief Executive Officer (CEO) influence the financial performance of Vietnamese commercial banks. Data are collected from 28 listed banks in Vietnam from 2013 to 2023. The study employs regression methods including OLS, FEM, REM, and FGLS. To ensure robustness and address potential model limitations, SGMM regression is also utilized. The results indicate that banks led by female COBs and CEOs tend to achieve better financial performance. Additionally, older COBs are associated with lower bank performance. The findings also highlight the significant impact of bank leaders' expertise and educational background on financial performance. To the author's knowledge, this is the first study to analyze the combined effect of bank leadership attributes on the profitability of Vietnamese commercial banks within an emerging economy. It is also among the first to examine the mediating role of the capital adequacy ratio (CAR). The results provide a solid basis for stakeholders to make informed decisions related to the recruitment, appointment, training, and development of bank leaders to enhance financial performance.

This study to analyze the effect of Non Performing Loan (NPL), Capital Adequacy Ratio (CAR), and Net Interest Margin (NIM) on Return on Assets (ROA) with Operating Expenses to Operating Income (BOPO) as an intervening variable at PT Bank Rakyat Indonesia (Perser) Tbk. This research employs a quantitative approach using secondary data obtained from the annual financial statements of Bank BRI for the period 2015-2024. The data analysis method used in this study is Structural Equation Modeling (SEM) based on Partial Least Squares (PLS), which allows the examination of both direct and indirect relationship among variables in the research model. The independent variables consist of NPL, CAR, and NIM, the intervening variable is BOPO and the dependent variable is ROA. The results indicate that NPL has a positive effect on BOPO, suggesting that higher credit risk leads to increased operational costs. CAR and NIM have a negative effect on BOPO, indicating that adequate capital and effective interest income management improve operational efficiency contributes to increased bank profitability. The findings also confirm that BOPO mediates the relationship between NPL, CAR, and NIM on ROA. This study is expected to contribute to the academic literature on banking financial management and provide practical insights for bank management in enhancing operational efficiency and sustainable profitability.

Empirical studies from emerging markets such as Nepal and other South Asian countries report inconsistent and often contradictory findings regarding firm-specific determinants of share prices. To address these issues, the researchers adopted a correlational and explanatory research design so as to examine the relationship and explanatory power of firm-specific determinants over market price per share (MPS) of Nepalese commercial banks. Sixteen commercial banks were selected using judgmental sampling, and balanced panel data covering 2019/20–2023/24 were collected from their annual reports. Ordinary least squares (OLS) regression revealed significant positive effects of cash reserve ratio (CRR), capital adequacy ratio (CAR), and total assets (TA) on MPS, while return on assets (ROA) showed a positive but non-significant effect. Conversely, weighted average interest rate spread (WAIRS), credit-to-deposit ratio (CDR), and non-performing loan ratio (NPLR) showed significant negative effects on MPS. These findings provide valuable insights for investors, helping them make more informed decisions.

This study examines the interrelationship between capital adequacy ratio (CAR), profitability and other bank-specific and macroeconomic variables in Indian banks using a simultaneous equations framework. By disaggregating the sample into public, private and foreign banks, the analysis uncovers both commonalities and key differences in how these variables interact across ownership types. The findings challenge previous results observed at the aggregate level—for instance, the previously reported positive association between non-performing assets (NPAs) and CAR is not observed in any bank group. Our results challenge prior aggregate-level findings, as the purported positive association between NPAs and CAR does not hold for any bank group. These insights contribute to a more nuanced understanding of capital–profitability dynamics in a diverse banking system.

This study aims to examine the effect of bank soundness, measured using the Risk Profile, Good Corporate Governance, Earnings, and Capital (RGEC) framework, on the firm value of conventional banks. Firm value is proxied by Tobin’s Q, while bank soundness is measured by non-performing loans (NPL) as a proxy for risk profile, self-assessment scores as a proxy for good corporate governance, return on assets (ROA) as a proxy for earnings, and the capital adequacy ratio (CAR) as a proxy for capital. This research employs descriptive and verificative methods with a quantitative approach. Data analysis is conducted using panel data regression. The sample is selected through purposive sampling, resulting in 42 conventional banks listed on the Indonesia Stock Exchange during the 2020–2023 period. Hypothesis testing is performed using the F-test and t-test. The results indicate that the risk profile proxied by NPL has a significant negative effect on firm value. Good corporate governance proxied by self-assessment shows no significant effect on firm value. Earnings proxied by ROA have a significant negative effect on firm value, while capital proxied by CAR has a significant positive effect on firm value. The adjusted R-squared value of 0.164 suggests that 16.4% of the variation in firm value can be explained by risk profile, good corporate governance, earnings, and capital, while the remaining 83.6% is influenced by other factors outside the research model.

ASEAN financial integration has increased interdependence among banking systems, making them more exposed to global economic shocks. Despite operating within the same regional framework, banks in Indonesia, Malaysia, and Singapore show notable differences in financial performance and resilience. This study compares the banking performance of the three countries over the 2020–2024 period using key financial indicators, including Return on Assets (ROA), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Operating Expenses to Operating Income (BOPO), and Non-Performing Loans (NPL). The analysis is based on a quantitative, descriptive-comparative approach, examining secondary data from the annual financial statements of the nine largest conventional banks in each country, resulting in 45 observations. Descriptive statistics and One-Way ANOVA tests were applied using IBM SPSS Statistics to identify performance differences across countries. The findings reveal statistically significant differences in all indicators. Indonesian banks recorded the highest profitability and capital strength, with average ROA of approximately 2.8 percent and CAR of 23.8 percent. However, this performance was accompanied by higher operational inefficiency and credit risk, reflected in elevated BOPO and NPL levels. In contrast, banks in Malaysia and Singapore demonstrated more stable and efficient performance, with lower BOPO ratios and smaller NPLs. These results highlight structural and managerial differences across ASEAN banking systems and provide valuable insights for bank managers, regulators, and investors in assessing performance and risk

The study investigates the relationship between bank profitability and a comprehensive list of bank-specific, industry-specific and macroeconomic variables using unique panel data from 23 Bangladeshi banks with large market shares from 2005 to 2019 employing the Pooled Ordinary Least Square (POLS) Method for regression estimation. The random Effect model has been used to check for robustness. Three variables, namely, Return on Asset (ROA), Return on Equity (ROE), and Net Interest Margin (NIM), have been used as profitability proxies. Non-interest income, capital ratio, and GDP growth have been found to have a significant relationship with ROA. In addition to non-interest income, market share, bank size, and real exchange rates are significant explaining variables if profitability is measured as NIM. The only significant determinant of profitability measured by ROE is market share. The primary contribution of this study to the existing knowledge base is an extensive empirical analysis by covering the entire gamut of independent variables (bank-specific, industry-related, and macroeconomic) to explain the profitability of the banks in Bangladesh. It also covers an extensive and recent data set. Banking sector stakeholders may find great value from the outputs of this paper: Regulators and policymakers may find this useful in undertaking analyses in setting policy rates, banking industry stability, and impact assessment of critical policy measures before and after the enactment, etc. Investors and the bank management are to use the findings of this paper in analyzing the real drivers of profitability of the banks they’re contemplating to invest and managing on a day-to-day basis. Journal of Business Studies, Vol. XLIV, No. 1, 2025 Page 139-164

This study aims to determine the effect of People’s Business Credit (KUR) Distribution, Non Performing Loan (NPL), Bank Indonesia Rate Level and Capital Adequacy Ratio (CAR) on profitability at PT Bank Rakyat Indonesia (Persero) Tbk for the period 2016-2023. The population in this study were all financial reports published by PT Bank Rakyat Indonesia (Persero) Tbk for the period 2016-2023. The sampling technique used was purposive sampling with the criteria for presenting data on people’s business credit distribution, Non Performing Loan (NPL), Bank Indonesia Rate Level and Capital Adequacy Ratio (CAR) and profitability at PT Bank Rakyat Indonesia (Persero) Tbk for the period 2016-2023. The data analysis of this study used SPSS. The results of the study showed that the People's Business Credit (KUR) Distribution variable partially had a positive and significant effect on the profitability of PT Bank Rakyat Indonesia with a significant value of 0.044. The Non Performing Loan (NPL) variable partially has a negative and significant effect on the profitability of PT Bank Rakyat Indonesia with a significant value of 0.017. The Bank Indonesia Interest Rate variable partially has a positive and significant effect on the profitability of PT Bank Rakyat Indonesia with a significant value of 0.031. While the Capital Adequacy Ratio (CAR) variable partially has a positive and insignificant effect on the profitability of PT Bank Rakyat Indonesia with a significant value of 0.083. This study shows that 58% of the profitability of PT Bank Rakyat Indonesia is influenced by the Distribution of People's Business Credit, Non Performing Loan (NPL), Bank Indonesia Interest Rate and Capital Adequacy Ratio (CAR) together.

Abstract – This research objective is to analyze and examine the influence of capital adequacy ratio (CAR), non-performing loan (NPL), operational expenses to operational income ratio (BOPO), and loan to deposit ratio (LDR) on return on assets (ROA) in banking sector companies listed in the Indonesia Stock Exchange (Jakarta Stock Exchange). The data used are the financial ratios of banks from 2018 to 2022. The sample size for this study consists of 10 companies selected using purposive sampling method. The data analysis technique used is panel data regression analysis, processed using Eviews 9.0 application following the random effect model. The results of this research indicate that CAR and LDR have no effect on return on assets (ROA), while NPL and BOPO have negative effect on return on assets (ROA). Keywords: Return on assets, capital adequacy ratio, nonperforming loan, operational expenses and operational income, loan to deposit ratio

This study examines the effect of expansionary fiscal policy on the liquidity of Islamic banks by using Third-Party Funds (DPK) and the Capital Adequacy Ratio (CAR) as intervening variables. Using a quantitative approach based on secondary data from Islamic banks’ financial statements and OJK statistics for the period from January 2022 to December 2024, this study employs multiple linear regression analysis and path analysis to assess both direct and indirect effects. The findings indicate that the regression model used is significant with an R² value of 0.511, where DPK (β = 0.438; p = 0.004) and CAR (β = 0.379; p = 0.013) show a positive effect on liquidity, and the results of the simultaneous test also confirm that expansionary fiscal policy has a significant influence. These results affirm that fiscal policy not only contributes directly to liquidity but also does so through Islamic financial intermediaries as the main channel in the transmission process. In practical terms, these findings reinforce the importance of coordination between government fiscal policy and Islamic banks’ management strategies to improve fund mobilization and strengthen capital, while also providing empirical evidence supporting the relevance of Keynesian theory in maintaining the stability of the Islamic banking sector in Indonesia.

This study aimed to analyse the impact of macroeconomic variables, such as inflation, economic growth and financial soundness indicators, on net interest margin (NIM) in Jordanian commercial banks. The autoregressive distributed lag (ARDL) model was used to achieve the study’s objectives and test its hypothesis. The study found a long-term equilibrium relationship between these variables. Moreover, the results showed a significant long-term and short-term relationship between financial soundness indicators and NIM in Jordanian banks. While the deposit utilisation ratio, capital adequacy ratio and non-performing loan (NPL) ratio exhibited a positive relationship with NIM, the analysis revealed a negative relationship between the statutory liquidity ratio (SLR) and NIM. However, the analysis did not show any significant impact of inflation and economic growth on the margin in both the long and short term. This study recommends that Jordanian banks adopt transparency policies in disclosing information related to financial soundness, develop advanced credit risk assessment systems and establish a specialised unit to study, analyse and manage bank liquidity, credit policy and NPLs.

This study investigates the interplay between asset quality, financial ratios, and market valuation in Indian commercial banks over a twelve-year period (2014–2025). Using a hybrid approach combining Structural Equation Modeling, correlation analysis, and trend evaluation, the research examines whether Non-Performing Assets (NPAs) influence market capitalization directly or through Return on Equity (ROE) as an intermediary. The findings reveal that NPAs exert a significant negative impact on both ROE and market value, while Net Interest Margin (NIM) emerges as a strong positive determinant of valuation. Conversely, Capital Adequacy Ratio (CAR), though vital for regulatory compliance, shows no direct effect on market prices. Mediation analysis challenges conventional assumptions, indicating that profitability alone does not fully explain valuation dynamics. These insights underscore the need for integrated strategies addressing asset quality and operational efficiency, offering practical implications for policymakers, investors, and bank management in strengthening resilience and optimizing shareholder value.

Aim . Analysis of the effectiveness of monetary policy controlling inflation under conditions of simultaneous demand and supply shocks. Methodology . The most conventional linear representations of New Keynesian models (AD-AS and IS-LM-PC), bibliographic and qualitative methods of analysis are used. Results . Under conditions of simultaneous demand and supply shocks, an effective monetary policy aimed at controlling inflation is achieved by a one-time, timely increase in the key rate, as well as by establishing an achievable inflation target, macro and micro prudential restrictions, tightening mandatory liquidity and capital ratios, and increasing the mandatory reserve ratio. At the same time, the key rate raise should have an upper limit and not lead to the accumulation of credit risk in the system. Research implications. This paper contributes to the scientific literature on the analysis of monetary policy implemented by central banks. The practical significance of the paper is expressed in recommendations addressing to increase the effectiveness of monetary policy in controlling inflation and inflation expectations.

Abstract I investigate how property and casualty insurers affected by the mega natural disasters of 2005, 2012, and 2017 adjusted their capital ratios and operations during the post‐disaster period. After the 2005 and 2012 events, affected insurers raised their capital ratios more than non‐affected insurers, relative to the period immediately preceding the events. However, following the 2017 event, affected insurers did not significantly increase their capital ratios relative to the pre‐event period. Further analysis reveals that this result is primarily driven by Florida‐focused insurers, which have less diversified operations and lower AM Best ratings, reflecting higher insolvency risk. These insurers may have faced higher costs of raising capital or had incentives to take on more risk, suggesting risk‐shifting behavior. Additionally, some affected insurers adjusted their asset portfolios and reinsurance usage. Overall, the results suggest that insurers aim to maintain target capital ratios and that specific firm characteristics influence their adjustment behaviors.

As a cornerstone of the modern financial safety net, the Lender of Last Resort (LOLR) is essential in mitigating liquidity crises and containing financial contagion. However, during periods of economic stability, risk-taking incentives in the banking sector may undermine its effectiveness. Using quarterly panel data from 55 countries over the period 2010–2023, this study employs a two-way fixed effects model to assess the impact of LOLR support on systemic financial risk and its transmission mechanisms. We find that LOLR support significantly increases systemic risk during stable economic periods. Mechanism analysis indicates that this effect is channeled through the erosion of bank asset liquidity, expansion of financial leverage, and deterioration in asset quality. Moreover, the adverse impact is more pronounced in emerging economies, bank-dominated financial systems, countries with low capital adequacy ratios, underdeveloped regulatory frameworks, and lower levels of digital technology adoption. This study provides cross-country evidence on the potential negative consequences of central bank rescue functions during calm periods and offers important policy insights for optimizing the LOLR framework and building a more resilient financial safety net.

This study aims to analyze~ the~ multidime~nsional pe~rformance~ of PT Bank Aladin Syariah Tbk during its crucial digital transformation phase~ (2020–2024). Using a de~scriptive~ quantitative~ approach, this re~se~arch inte~grate~s thre~e~ me~asure~me~nt me~thods: bank soundne~ss using the~ RGE~C me~thod (Risk Profile~, GCG, E~arnings, Capital), te~chnical e~fficie~ncy using Data E~nve~lopme~nt Analysis (DE~A), and stability and bankruptcy risk using Bank Z-Score~ and Modifie~d Altman Z- Score~. The~ re~sults show a unique~ phe~nome~non in the~ bank's fundame~ntals: although profitability ratios (ROA) e~xpe~rie~nce~d ne~gative~ pre~ssure~ due~ to digital infrastructure~ inve~stme~nt costs, the~ bank de~monstrate~d supe~rior solve~ncy re~silie~nce~ with a ve~ry high Capital Ade~quacy Ratio (CAR) and a maintaine~d low risk profile~ (NPF). DE~A analysis re~ve~als the~ succe~ss of ope~rational transformation, whe~re~ the~ bank manage~d to le~ap from structural ine~fficie~ncy in 2021 (score~ 0.23) to pe~rfe~ct te~chnical e~fficie~ncy (score~ 1.00) consiste~ntly in the~ 2022–2024 pe~riod through partne~rship e~cosyste~m optimization. Furthe~rmore~, stability indicators confirm that the~ bank is in the~ "Safe~ Zone~" with minimal insolve~ncy risk. This study conclude~s that accounting losse~s in the~ e~arly phase~ of digital banks do not re~fle~ct ope~rational failure~, but rathe~r strate~gic inve~stme~nts that have~ be~e~n compe~nsate~d by te~chnical e~fficie~ncy and a robust capital structure~.

The main aim of this study on the Pre- and Post-Merger of “Bank of Baroda, Vijaya Bank, and Dena Bank”, and their performance before and following five years of the Merger. The 21st century is the span of rapidly advancing technology which increases competition between Companies, banks, and businesses. Mergers and Acquisitions are effective strategies to survive in the market and beat the competition. The current study used a camel model for evaluating financial performance impact due to merger for selected merged banks which considers a period of 2013-14 to 2023-24. “CAMEL stands for Capital Adequacy, Assets Quality, Management Efficiency, Earnings Quality, and Liquidity”. The finding shows that the influence on economic outcomes due to mergers are combination of positive and negative effects. It shows considerable changes in Capital Adequacy Ratio, overall total business per employee, Total Investment on Total Assets, Operating Profit on average working funds, Total Advances on Total deposits, Net interest to total assets, and Liquid Assets on Demand Deposits in the pre-post-merger period.

Avoiding Middle-income Trap in Muslim Majority Countries: The Effect of Total Factor Productivity, Human Capital, and Age Dependency Ratio International Journal of Business and Development Studies

This study aims to analyze the influence of variables on Bank Muamalat's profitability during 2016-2023 using a quantitative approach. The variables tested included CAR (Capital Adequacy Ratio), NPF (Non-Performing Financing), FDR (Financing-to-Deposit Ratio), and inflation. The results of the study show that the variable that has the most significant influence on profitability is NPF (Non-Performing Financing), which has a significant effect on the bank's profitability. This shows that effective non-performing loan management can directly improve the bank's financial performance. Meanwhile, inflation significantly affects profitability, as rising inflation can reduce consumers' purchasing power and affect banks' performance. On the other hand, the CAR (Capital Adequacy Ratio) does not have a significant effect on profitability, indicating that while maintaining financial stability is important, its impact on profitability is not substantial. The same applies to the FDR (Financing-to-Deposit Ratio), which has no significant effect on profitability. These findings imply that NPF management and inflation monitoring should be the primary focus in efforts to increase the profitability of Islamic banks.

The Indonesian banking sector faces a paradox of maintaining high capital buffers for stability while pursuing profitability amid digital disruption. This study examines the profitability determinants of conventional commercial banks, with a novel focus on testing the moderating role of the Capital Adequacy Ratio (CAR) in the loan-to-deposit ratio (LDR) and return on assets (ROA) relationship a mechanism hypothesized to explain previous empirical inconsistencies. Using quarterly panel data from 43 banks from Q1 2020 to Q3 2025 (989 observations) and a Fixed Effects model corrected with robust standard errors, the results reveal three key findings. First, the moderation hypothesis is rejected; high capital buffers do not significantly alter the impact of LDR on ROA. Second, operational efficiency (BOPO) proves to be the most consistent and dominant determinant of profitability. Most importantly, the key contribution lies in the discovery of sharp heterogeneity: traditional determinant models exhibit very strong explanatory power (R² = 66%) for small banks (CAR ≤ 25.1%) but fail to explain profitability for large, over capitalized banks (R² = 26.1%), where no traditional variables are significant. This demonstrates that profitability drivers evolve with bank scale, rendering one size fits all policy and strategic approaches ineffective. Consequently, regulators must implement differentiated macroprudential policies, while bank management should tailor core strategies based on their specific segment.