Performance Of Private Commercial Banks Research Articles

Accounting Information System as the Predictor of the Performance of Private Commercial Banks in Bangladesh

Accounting Information System as the Predictor of the Performance of Private Commercial Banks in Bangladesh

The Impact of Corporate Governance on Financial Performance of Private Commercial Banks in Bangladesh

Corporate governance is imperious to the banking sector's growth. The study aims to explore how corporate governance mechanisms impact certain aspects of financial performance. This study has taken five listed conventional PCBs with a five-year study period from 2016 to 2020 using the purposive sampling technique. The influence of various CG mechanisms on financial performance attributes has been investigated through the use of multiple regression analysis. The study findings demonstrate that equity ratio, log total assets, and log listing age out of eight variables have a significant influence on NPM and ROA, while the other five variables revealed insignificant influence. On the other hand, ROE was influenced by log total assets and log listing age, but insignificant influence was found in the remaining six variables. Moreover, log listing age revealed a significant impact on EPS, whereas an insignificant influence has been observed in the case of the remaining seven variables. The study recommended that corporate governance must be adequate and transparent for the sake of pertinent stakeholders in the banking sector.

Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing

The main purpose of this study is to identify the impact of green banking activities on green financing and banks’ environmental performance. It also identifies the mediating effect of green financing on the relationship between green banking activities and environmental performance of private commercial banks (PCBs) in Bangladesh. Besides, this study also examines the major challenges and benefits of green banking development in an emerging economy like Bangladesh. The convenience sampling technique was used to collect primary data from bankers of PCBs in Bangladesh, and a final sample size of 352 was recorded. To assess the relationship among the study variables, the Structural Equation Modelling (SEM) approach was employed. The empirical results revealed that green banking activities exhibit a significantly positive effect on banks’ environmental performance and sources of green financing, and that sources of green financing significantly influence banks’ environmental performance. Additionally, it was observed that green financing mediates the association between green banking activities and banks’ environmental performance. Furthermore, the study identified customers’ insufficient awareness towards green banking, high investment costs, technical obstacles, lack of capable and competent staff in appraising green credits/loans, and difficulties and complexity in assessing green projects as major challenges affecting the development of green banking in Bangladesh. Moreover, the study also discovered that increasing banks’ competitiveness, reducing long-term costs and expenses, providing online banking facilities, improving customers’ goodwill, and reducing carbon footprints are the key benefits of green banking development, as it helps in the achievement of the sustainable economic development of the country. Therefore, major theoretical and managerial policy implications are further discussed with study limitations and future research directions.

The Impact of Capital Adequacy, Operating Efficiency, Credit and Asset Management on Profitability Performance of Private Commercial Banks: A Study on Bangladesh

The purpose of this study is to assess the impact of capital adequacy, operating efficiency, credit and asset management on profitability performance. For this study, a total of 13 Bangladeshi private commercial banks and their annual reports (2015-2019) were considered. Return on assets (ROA) and return on equity (ROE) were used as profitability performance. Descriptive, correlation and multiple regression statistics were used. Correlation results showed that asset management (AM) and credit deposit (CD) were positively and significantly correlated with return on assets (ROA). Regression result revealed that operating efficiency (OE) was negatively significant with return on assets (ROA) and return on equity (ROE). Again credit deposit (CD) was positively significant with return on assets (ROA) and return on equity (ROE). It was also revealed that asset management (AM) was positively significant with return on assets (ROA) and capital adequacy (CA) was insignificant with return on equity (ROE). But a simultaneous significant impact was found on return on assets (ROA) and return on equity (ROE). And recommendations were to manage credit, deposit, capital, expense and asset efficiently and to concentrate on optimizing assets for long run survival in the market. Keywords: Asset management, Capital adequacy, Credit deposit, Operating efficiency, Profitability performance DOI: 10.7176/RJFA/13-2-07 Publication date: January 31 st 2022

ادارة مخاطر السوق وأثرها في الاداء المالي في المصارف التجارية

The research aims to study the impact of market risks on the financial performance ofprivate commercial banks, targeting a sample of Iraqi private banks for the period from 2004-2018. Thefinancial performance was measured using the camel’s model, while the market risk was measuredthrough the index of investment in securities Current assets. The cross-sectional data was adopted for thepurpose of including the data in the simple regression model that was adopted to study the effect of theindependent variable on the dependent variable. The results of the research indicated that there was astatistically significant effect of market risks on the financial performance of private commercial banks,which amounted to 25%.

Financial Performance Analysis of Private Commercial Banks of Ethiopia

The study aimed to examine the performance of private commercial banks of Ethiopia with liquidity, profitability, risk & solvency and efficiency ratio for the period 2014-2017 . To meet the objective of the study, secondary sources of data, such as annual reports of the bank have been utilized After collecting the necessary data, appropriate financial ratios and descriptive statistical techniques were employed for analyzing, interpreting and giving a condensed picture of the collected data. According to the overall performance of financial ratio analysis Addis International Bank stood on the top followed by Birhan International Bank. Whereas Bank of Abyssinia stood the least. In general, Addis international bank has better average performance in order to minimize the degree of financial risk, utilizing of asset to generate income, meeting its shortterm obligation and performing interims of profit, but Bank of Abyssinia has less profit per birr, utilizing of asset, margin of safety on average. AIB, BOA and UB are weak on the average rank of financial factors. Therefore, the managers of the banks advised to share experience from other high achievable banks such as ADIB, BIB on the average ranks of financial factors profitability, liquidity, efficiency, risk and solvency. In addition they make more advertisement for customers by reward increase interest for the deposit of their customers and give special training for their employees how to use asset, how to attract customers, how to motivate the investors that use their bank Keywords: Key words: Financial Performance, liquidity ratio, profitability ratio, efficiency ratio, financial statement DOI: 10.7176/RJFA/11-13-01 Publication date: July 31 st 2020

Effect of Capital Management on the Performance of Private Commercial Banks in Rwanda: A Case Study of Bank of Kigali

The study was about capital management and performance of the banking sector with Bank of Kigali as the case study. The study was motivated by the various episodes of private bank failures in many parts of the world. This study therefore, examined the role of capital management on the performance of banking sector. To achieve, this objective, the following specific objectives guided this study: To explore the capital management techniques used by bank of Kigali; To examine the level of performance of Bank of Kigali To analyse a relationship between capital management and performance of the bank of Kigali and to examine challenges in the capital management and solution to the mentioned challenges. A multi-method approach composed of both qualitative and quantitative research design was used. Data was collected from both primary and secondary sources using questionnaire and documentation were used. A population comprised of 50 bank employees was selected, from which a sample of 32 respondents was determined using the Kreijcie and Morgan formula. Data was captured using the statistical package for sciences (SPSS) and presented into frequency tables. A regression analysis was carried out using SPSS. A significance test t≤5% was assumed. The findings indicated that a variation of 70.8%, 42%, 63%, 71.6% and 64% in the capital adequacy, asset quality, management efficiency, earnings and liquidity of the bank is caused by capital management and other variables. More still, the findings from the survey indicated that the bank encounters a number of challenges which include, but not limited to capital modelling, quantification of risks and interpretation Basing on the results the study concluded that capital management is a key component in the performance management of the banking sector. The study suggested the following policies for the effective performance management of the bank; establishing the internal capital assessment process committee, capital buffers to cover the unexpected losses, use of stress and back-testing and active involvement of the board of directors in the capital management.

Holistic Performance Assessment of Indian Private sector Banks: An Empirical Study with Multiple Model Approach

Banks play an important role in the economic growth of each country, especially private banks. This is the performance study of the three main private banks, namely listed on the National Stock Exchange (NSE), including the Bombay Stock Exchange (BSE). The financial measures are used for the statistical analysis of the performance of banks. Three key indicators, the performance of assets (ROA), Q model Tobin (price / book value), return on equity (ROE), an important performance ratio The data relating to the use by investors for the period from 2008 to 2018 selected banks. A multiple regression technique was used to identify the three indicators of financial performance, bank size, credit risk, asset management, operating efficiency and debt ratio. The results show that all selected measures have an impact on the financial performance of private commercial banks.

Impact of Bancassurance on Financial Performance of Private Commercial Banks in India

In order to get competitive advantage, many Financial Institutions are sharing resources in the current scenario. To ward off competition Financial Institutions have tied up with the banks which is termed as bancassurance. The present study is focused on studying the impact of bancassurance on the financial performance of the privately owned commercial banks in India full stop the data was collected from 180 respondents working in 6 private banks of India. With the help of a questionnaire the primary data is collected and the secondary data was collected from the respective Bank sites. It was found that banks should come up with optimum optimal regulatory policies that won't allow them to compromise with the banks performance. And they have to recruit the best management talents so that right decision, smooth handling of the risk can be done by the banks.

English

This study aims at examining the determinants of the financial performance of private commercial banks in Ethiopia. The study uses secondary data for eight private banks which are in the industry for more than ten years. These banks are chosen from sixteen private commercial banks which are currently functional in Ethiopia banking industry. The data for this study is obtained from annual reports of the banks, minutes and the national bank report. Correlation and multiple linear regressions of panel data for the eight banks for the years 2007 to 2016 is analyzed using random effect model. E-Views 9 software was used for analyzing the data. Return on Asset and Return on Equity are the selected dependent variables while non-performing loan, capital adequacy ratio, bank size, leverage ratio, credit interest income ratio, loan loss provision ratio and operation cost efficiency were the independent variables. Results show that Capital Adequacy Ratio (CAR), Credit Interest Income (CIR) and Size of the bank (SIZE) have positive and statistically significant effect on financial performance. Non-performing Loans (NPLs), Loan Loss Provision (LLP), Leverage Ratio (LR) and Operational Cost Efficiency (OCE) have negative and statistically significant effect on banks’ financial performance. The study suggests that Ethiopian commercial banks are advised to manage their loan loss, be cost efficient, and fix their leverage ratio at maximum level to enhance their profitability. Key words: Ethiopia, commercial banks, determinants, financial performance.

Intellectual capital and firm performance nexus: evidence from Ethiopian private commercial banks

The link between intellectual capital and firm performance showed mixed results that attracted the attention of researchers worldwide. As one of the under-researched geographical locations, Ethiopia's private commercial banks deserve the attention from the intellectual capital-performance relationship perspective. This study aimed at investigating the connection between intellectual capital and performance of private commercial banks. The researchers compiled data from audited annual reports released on respective websites of nine private commercial banks in Ethiopia from 2011-2015. Accordingly, the intellectual capital of those banks was calculated using value-added intellectual capital coefficient (VAICTM). The multiple regression results indicated that components of VAIC predicted banks performance better than VAIC alone. Besides, capital employed efficiency was found to have the most positive significant relationship (5.28) with ROA. Thus, Ethiopian private commercial banks are advised to capitalise on the efficient utilisation of their physical and financial capitals to increase their financial performance.

Intellectual Capital and Firm Performance Nexus: Evidence from Ethiopian Private Commercial Banks

The link between intellectual capital and firm performance showed mixed results that attracted the attention of researchers worldwide. As one of the under-researched geographical locations, Ethiopia's private commercial banks deserve the attention from the intellectual capital-performance relationship perspective. This study aimed at investigating the connection between intellectual capital and performance of private commercial banks. The researchers compiled data from audited annual reports released on respective websites of nine private commercial banks in Ethiopia from 2011-2015. Accordingly, the intellectual capital of those banks was calculated using value-added intellectual capital coefficient (VAICTM). The multiple regression results indicated that components of VAIC predicted banks performance better than VAIC alone. Besides, capital employed efficiency was found to have the most positive significant relationship (5.28) with ROA. Thus, Ethiopian private commercial banks are advised to capitalise on the efficient utilisation of their physical and financial capitals to increase their financial performance.

Performance Evaluation of Private Commercial Banks of Bangladesh: A Trend Analysis

The study revealed the trend analysis of the private commercial banks and given an overview of the performance of private commercial banks of Bangladesh. Nowadays, the banking sector is the “lifeblood” of all economic activity. The study is empirical. To get the proper understanding about the trend of different variables such as, investment loan & advancement, total asset, total liability, total equity, profit after tax, return on investment, return on asset, and return on equity from 2013 to 2017 the sample was extracted from the scheduled commercial banks. The result shows that the banking system of Bangladesh is not running at a normal pace. The index of the various variable of PCBs has progressed in some years, but again it has been delayed for the next time. The ROI and the ROA result show the best output in 2014 and the worst in 2017. On the other side, the best return on equity shows in 2014, but it is in the lowest position in 2015 because of a sudden increase in an equity position. The trend of profit after tax is like a wave. In 2014 and 2016 it is increased than the last year. On the other hand, in 2013, 2015 & 2017 it is decreased in comparison to the previous year. The data shows that the PAT is rotated within 15,000 to 20000 million taka. It is studied that, the growth and development, as well as the performance trend, is not rhythmic. PCBs should get the proper rhythm of their development, and for the development of the state.

INFLUENCE OF INVENTORY MANAGEMENT ON PERFORMANCE OF THE PRIVATE COMMERCIAL BANKS IN KENYA

Purpose: The goal of the study was to examine the influence of inventory management on performance of private commercial banks in Kenya, with an aim of making recommendations on proper use of inventory management practices.Methodology: This research study adopted a descriptive research design approach. The researcher preferred this method because it allowed an in-depth study of the subject. The target population was all the 220 procurement officers in the private commercial banks in Kenya. From the three strata, a sample of 142 respondents was selected using simple random sampling. Data was collected using self-administered questionnaires. The data collected was analyzed by use of descriptive and inferential statistics. Multiple regression model was used to show the relationship between the dependent variable and the independent variables.Results: In regard to information technology, the regression coefficients of the study show that it has a significant influence of 0.752 on performance of private commercial banks. Second in regard to warehouse management system, the regression coefficients of the study show that it has a significant influence of 0.156 on performance of private commercial banks.With regard to the third objective, the regression coefficients of the study show inventory cycle counting has a significant influence of 0.06 on performance of private commercial banks. Lastly, in regard to the fourth objective, the regression coefficients of the study show warehousing management system has a significant influence of 0.02 on performance of private commercial banks.Conclusion: The findings of the study concluded that information technology, inventory control techniques, inventory cycle counting and warehousing management system have a positive relationship with performance in private commercial banks.Policy recommendation: the study recommended that private institutions should embrace inventory management practices so as to improve their performance and further researches should to be carried out in other private institutions to find out if the same results can be obtained.

INFLUENCE OF INVENTORY MANAGEMENT ON PERFORMANCE OF THE PRIVATE COMMERCIAL BANKS IN KENYA

Purpose: The goal of the study was to examine the influence of inventory management on performance of private commercial banks in Kenya, with an aim of making recommendations on proper use of inventory management practices.Methodology: This research study adopted a descriptive research design approach. The researcher preferred this method because it allowed an in-depth study of the subject. The target population was all the 220 procurement officers in the private commercial banks in Kenya. From the three strata, a sample of 142 respondents was selected using simple random sampling. Data was collected using self-administered questionnaires. The data collected was analyzed by use of descriptive and inferential statistics. Multiple regression model was used to show the relationship between the dependent variable and the independent variables.Results: In regard to information technology, the regression coefficients of the study show that it has a significant influence of 0.752 on performance of private commercial banks. Second in regard to warehouse management system, the regression coefficients of the study show that it has a significant influence of 0.156 on performance of private commercial banks.With regard to the third objective, the regression coefficients of the study show inventory cycle counting has a significant influence of 0.06 on performance of private commercial banks. Lastly, in regard to the fourth objective, the regression coefficients of the study show warehousing management system has a significant influence of 0.02 on performance of private commercial banks.Conclusion: The findings of the study concluded that information technology, inventory control techniques, inventory cycle counting and warehousing management system have a positive relationship with performance in private commercial banks.Policy recommendation: the study recommended that private institutions should embrace inventory management practices so as to improve their performance and further researches should to be carried out in other private institutions to find out if the same results can be obtained.

Impact of Basel II Implementation on the Financial Performance of Private Commercial Banks of Bangladesh

To ensure financial stability and development, capital adequacy framework of financial institutes is an integral part for global business. In recent times, BASEL-II has been implemented globally and its outcome has been constructive for financial institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.

Impact of Basel II Implementation on the Financial Performance of Private Commercial Banks of Bangladesh

Impact of Basel II Implementation on the Financial Performance of Private Commercial Banks of Bangladesh