Welcome to the Uniglobe Library
From this page you can:
| Home |
Descriptors
Refine your search Apply to external sourcesBank profitability and liquidity management: a comparative study of public banks, joint venture banks and private banks / Dan Bahadur Bhandari
Title : Bank profitability and liquidity management: a comparative study of public banks, joint venture banks and private banks Material Type: printed text Authors: Dan Bahadur Bhandari, Author Publication Date: 2016 Pagination: 107p. Size: GRP/Thesis Accompanying material: 8/B Languages : English Descriptors: Bank liquidity
Liquidity (Economics)Class number: 332.632 Abstract: Liquidity management is anidea that is gettinga thoughtful attention all over the world especially with the present financial conditions and the state of the world economy. Some of the outstanding corporate goals comprise the need to exploit profit, preserve high level of liquidity in order to guarantee safety and to achieve the highest level of owner’s net worth attached with the accomplishment of other corporate purposes. The prominence of liquidity management as it affects corporate productivity in today’s business cannot be over emphasized. The critical part in managing working capital is to maintain the liquidity in day-to-day operation to safeguard its smooth running and meets its obligation (Eljelly, 2004). Liquidity plays a significant role in the effective functioning of a business firm.
Liquidity is the ability of financialorganizations to meet their short-term obligations (Olagunju et al., 2011). It is the ability of banks to change their assets into cash in a shortest possible time. Nwankwo (2004)explained that the banking liquidity management is simply to meet financial commitment whether it is withdrawing from a current account or interbank deposit or a maturing issue of commercial paper. Bank liquidity refers to the ability of a bank to raise certain amount of funds at a certain cost within a certain period of time to discharge obligations (Andabai and Bingilar, 2015). The greater the amount of funds a bank can raise in a certain time at a specified cost, the more liquid the bank is (Mehar, 2001). Liquidity management is important to financial management decision. The optimal liquidity management can be accomplished by a company that manage the trade-off between profitability and liquidity management (Bhunia and Khan, 2011).
The major objective of the study is to assess the relationship between bank profitability and liquidity management of the Nepalese commercial banks. The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the relationship between liquidity management and bank profitability of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, and NABIL has the highest average ROE among the selected commercial banks throughout the study period. Similarly, the average liquid assets to total assets ratio is highest for SCBL (34.52 percent), average quick ratio is highest for NCC (35.11 times), average cash to deposit ratio is highest for MBL (5.53 percent), average investment in government securities is highest for RBBL (RS. 19.72 billion) and average capital adequacy ratio is highest for JBL (14.33 percent).
The descriptive statistics for public bank shows that the average return on assets , return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 1.92 percent, -6.12 percent, 25.73 percent, 3.52 percent, 3.06 time, Rs. 12.71 billion, 2.57 percent and Rs. 81.46 billion respectively. Similarly, the descriptive statistics for the joint venture banks reveals that the average return on assets, return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 2.15 percent, 23.47 percent, 26.78 percent, 2.39 percent, 10.58 time, Rs. 6.28 billion, 14.60 percent and Rs. 11.84 billion respectively. The result for the private bank reveals that the average return on assets, return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 1.38 percent ,13.45 percent, 25.72 percent, 3.27 percent, 17.73 time, Rs. 2.83 billion, 69.58 percent and Rs. 23.91 billion respectively.
The study of public banks shows that firm size and capital adequacy ratio is positively related to return on assets and return on equity whereas quick ratio, liquid assets to total assets ratio are negatively related to return on assets and return on equity. Similarly, the study of joint venture banks reveals that investment in government securities and firm size of the banks are negatively related to return on assets whereas liquid assets to total assets ratio and capital adequacy ratio are positively related to return on assets and return on equity. Likewise, the study of private banks shows that investment in government securities and firm size is positively related to return on assets and return on equity whereas liquid assets to total assets ratio, cash to deposit ratio, quick ratio and capital adequacy ratio are negatively related to return on assets and return on equity.
The regression results show that liquid assets to total assets ratio of the banks have significant negative impact on the bank profitability of public banks of Nepal with return on assets indicating higher the liquid assets to total assets ratio, lower would be the return on assets whereas it has positive and significant impact on return on assets of joint venture banks. Similarly, firm size has significant negative impact on the return on assets for joint venture banks whereas it has positive and significant impact on the return on assets for the private banks. The study also reveals that investment in government securities has significant positive impact with return on equity of public and private banks of Nepal indicating higher the investment in government securities, higher will be the return on equity. Similarly, the study also found that liquid assets to total assets ratio and firm size has significant positive impact on the return on equity for joint venture banks indicating that higher the liquid assets to total assets ratio and firm size, higher would be the return on equity.
Bank profitability and liquidity management: a comparative study of public banks, joint venture banks and private banks [printed text] / Dan Bahadur Bhandari, Author . - 2016 . - 107p. ; GRP/Thesis + 8/B.
Languages : English
Descriptors: Bank liquidity
Liquidity (Economics)Class number: 332.632 Abstract: Liquidity management is anidea that is gettinga thoughtful attention all over the world especially with the present financial conditions and the state of the world economy. Some of the outstanding corporate goals comprise the need to exploit profit, preserve high level of liquidity in order to guarantee safety and to achieve the highest level of owner’s net worth attached with the accomplishment of other corporate purposes. The prominence of liquidity management as it affects corporate productivity in today’s business cannot be over emphasized. The critical part in managing working capital is to maintain the liquidity in day-to-day operation to safeguard its smooth running and meets its obligation (Eljelly, 2004). Liquidity plays a significant role in the effective functioning of a business firm.
Liquidity is the ability of financialorganizations to meet their short-term obligations (Olagunju et al., 2011). It is the ability of banks to change their assets into cash in a shortest possible time. Nwankwo (2004)explained that the banking liquidity management is simply to meet financial commitment whether it is withdrawing from a current account or interbank deposit or a maturing issue of commercial paper. Bank liquidity refers to the ability of a bank to raise certain amount of funds at a certain cost within a certain period of time to discharge obligations (Andabai and Bingilar, 2015). The greater the amount of funds a bank can raise in a certain time at a specified cost, the more liquid the bank is (Mehar, 2001). Liquidity management is important to financial management decision. The optimal liquidity management can be accomplished by a company that manage the trade-off between profitability and liquidity management (Bhunia and Khan, 2011).
The major objective of the study is to assess the relationship between bank profitability and liquidity management of the Nepalese commercial banks. The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the relationship between liquidity management and bank profitability of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, and NABIL has the highest average ROE among the selected commercial banks throughout the study period. Similarly, the average liquid assets to total assets ratio is highest for SCBL (34.52 percent), average quick ratio is highest for NCC (35.11 times), average cash to deposit ratio is highest for MBL (5.53 percent), average investment in government securities is highest for RBBL (RS. 19.72 billion) and average capital adequacy ratio is highest for JBL (14.33 percent).
The descriptive statistics for public bank shows that the average return on assets , return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 1.92 percent, -6.12 percent, 25.73 percent, 3.52 percent, 3.06 time, Rs. 12.71 billion, 2.57 percent and Rs. 81.46 billion respectively. Similarly, the descriptive statistics for the joint venture banks reveals that the average return on assets, return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 2.15 percent, 23.47 percent, 26.78 percent, 2.39 percent, 10.58 time, Rs. 6.28 billion, 14.60 percent and Rs. 11.84 billion respectively. The result for the private bank reveals that the average return on assets, return on equity, liquid assets to total assets ratio, cash to deposit ratio, quick ratio, investment in government securities, capital adequacy ratio and firm size is 1.38 percent ,13.45 percent, 25.72 percent, 3.27 percent, 17.73 time, Rs. 2.83 billion, 69.58 percent and Rs. 23.91 billion respectively.
The study of public banks shows that firm size and capital adequacy ratio is positively related to return on assets and return on equity whereas quick ratio, liquid assets to total assets ratio are negatively related to return on assets and return on equity. Similarly, the study of joint venture banks reveals that investment in government securities and firm size of the banks are negatively related to return on assets whereas liquid assets to total assets ratio and capital adequacy ratio are positively related to return on assets and return on equity. Likewise, the study of private banks shows that investment in government securities and firm size is positively related to return on assets and return on equity whereas liquid assets to total assets ratio, cash to deposit ratio, quick ratio and capital adequacy ratio are negatively related to return on assets and return on equity.
The regression results show that liquid assets to total assets ratio of the banks have significant negative impact on the bank profitability of public banks of Nepal with return on assets indicating higher the liquid assets to total assets ratio, lower would be the return on assets whereas it has positive and significant impact on return on assets of joint venture banks. Similarly, firm size has significant negative impact on the return on assets for joint venture banks whereas it has positive and significant impact on the return on assets for the private banks. The study also reveals that investment in government securities has significant positive impact with return on equity of public and private banks of Nepal indicating higher the investment in government securities, higher will be the return on equity. Similarly, the study also found that liquid assets to total assets ratio and firm size has significant positive impact on the return on equity for joint venture banks indicating that higher the liquid assets to total assets ratio and firm size, higher would be the return on equity.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 259/D 332.632 BHA Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Determinants of bank liquidity in Nepalese commercial banks: A comparative study of public banks, joint venture banks and private banks Material Type: printed text Authors: Kiran Chaulagain, Author Publication Date: 2018 Pagination: 91p. Size: GRP/Thesis Accompanying material: 8/B Languages : English Descriptors: Bank liquidity Class number: 332.632 Abstract: Banks are financial institutions that play intermediary role in the economy through channeling financial resources from surplus (depositors) economic units to deficit (borrowers) units. One of the main functions of commercial banks is the availing of funds (monetary) to its customers: for a bank to be in a position to do so, it must be in a healthy liquidity position.Liquidity is the availability of cash in the amount and at the time needed at a reasonable cost. Liquidity management is one of the major functions of banking institutions because, in its absence, banks may collapse. So, it is necessary to identify determinants of liquidity in Nepalese context. Numerous recent empirical studies aimed to test determinants of bank’s liquidity were studied by various researchers in different countries. All these previous studies showed that the bank’s liquidity is influenced by both bank specific and macroeconomic factors. Bank specific factors consist of bank size, capital adequacy, non-performing loan, deposit to asset ratio, profitability etc. while macroeconomic factors include GDP growth rate, treasury bill rate, inflation rate, financial crisis etc.However, those factors which have statistically significant impact on liquidity in one country may not be replicated in another country.
The major objective of this study is to identify the determinants that affect the liquidity of commercial banks of Nepal and comparative study of determinants of liquidity of Nepalese commercial banks i.e. public banks, joint venture banks and private banks.The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross-sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design in order to analyze the determinants of liquidity in Nepalese commercial banks.
The result shows that NCC has highest liquid asset to total asset ratio (35.11times) and ADB has highest total loan to total deposit (105.45 percent) among the selected commercial banks throughout the study period. Similarly, the average capital adequacy ratio is highest for JBL (28.15 percent), average non-performing loan is highest for JBL (28.15 percent), average deposit to asset ratio is highest for NBL (91.55 percent), treasury bill rate is highest in year 2011 (8.35 percent), GDP growth rate is highest in year 2014 (5.40 percent), inflation rate is highest in year 2013 (9.9 percent) and average total asset is highest for NBL (105,571 million).
The descriptive statistics for the public banks reveals that the average total liquid asset to total asset is 3.07 times,average total loan to total deposit is 72.71 percent, average capital adequacy ratio is 2.57 percent, average non-performing loan ratio is 6.46 percent, average deposit to asset ratio is 82.53 percent, average size of public banks is 25.08 million. Similarly, the descriptive statistics for the joint venture banks reveals that the average total liquid asset to total asset is 10.58 times, average total loan to total deposit is 69.08 percent, average capital adequacy ratio is 11.84 percent, average non-performing loan ratio is 2.0 percent, average deposit to asset ratio is 86.93 percent, average size of joint venture banks is 24.62 million. Likewise, the descriptive statistics for the private banks reveals that that the average total liquid asset to total asset is 17.73 times, average total loan to total deposit is 81.75 percent, average capital adequacy ratio is 14.40 percent, average non-performing loan ratio is 1.64 percent, average deposit to asset ratio is 85.31 percent, average size of private banks is 23.09 million.The descriptive analysis shows that the average treasury bill rate, GDP growth rate and inflation rate are 3.90 percent, 4.32 percent and 8.95 percent respectively for the study period.
The correlation matrix of public bank shows that capital adequacy ratio, deposit to asset ratio, GDP growth rate and bank size are positively related to total liquid asset to total asset ratio (L1) whereas, non-performing loan, treasury bill rate and inflation rate are negatively relatedto total liquid asset to total asset ratio. The result also revealed that non-performing loan and treasury bill rate are negatively related with total loan to total deposit ratio (L2). However, capital adequacy ratio, deposit to asset ratio, GDP growth rate, inflation rate and bank size are positively related to total loan to total deposit ratio.The correlation matrix of joint venture bank reveals that capital adequacy ratio,non-performing loan, deposit to asset ratio, inflation rate and bank size have negative relationship with total liquid asset to total asset and treasury bill rate, GDP growth rate have a positive relation with total liquid asset to total asset. The result also reveals that capital adequacy ratio, non-performing loan, deposit asset ratio, GDP rate and bank size are negatively related to loans to deposit ratio. However, treasury bill rate and inflation rate are positively related to loans to deposit ratio.The correlation matrix of private banks shows the positive relation of capital adequacy ratio and GDP growth rate with total liquid asset to total asset ratio whereas non-performing loan, treasury bill rate, inflation rate and bank size reveals the negative relation with total liquid asset to total asset. The result also shows that capital adequacy ratio, treasury bill rate, and inflation rate are positively related to loans to deposit ratio. However, the non-performing loan, deposit to assets ratio, GDP rate and bank size are negatively related to loans to deposit ratio.
The regression result shows that the beta coefficients for capital adequacy ratio are positive and significant with liquidity (L1) for public and private banks.It indicates that capital adequacy ratio has positive impact on liquidity ratio.Likewise, beta coefficients for deposit asset ratio and GDP growth rate are positive and significant with liquidity (L1) for public, private and joint venture banks. It means deposit asset ratio and GDP growth rate are positive and significant with liquidity (L1). However, the beta coefficients for non-performing loans, treasury bill rate and inflation rate are negative and significant with liquidity for private, public and joint venture banks. It indicates that nonperforming loans, treasury bill rate and inflation rate have negative impact on liquidity. The result also shows that the beta coefficients for bank size are negative with liquidity ratio for joint venture and private banks. It indicates that bank size has negative impact on liquidity ratio. The regression resultalso shows that the beta coefficients for capital adequacy ratio are positive and significant with liquidity (L2) for public and private banks. It means that capital adequacy ratio has positive impact on liquidity. Likewise, beta coefficients for deposit asset ratio and inflation rate are positive and significant with liquidity (L2) for public, private and joint venture banks. It means deposit asset ratio and inflation rate are positive and significant with liquidity (L2). However, the beta coefficients for non-performing loans, treasury bill rate, GDP growth rate and bank size are negative and significant with liquidity for private, public and joint venture banks. It indicates that nonperforming loans, treasury bill rate, GDP growth rate and bank size have negative impact on liquidity.
Determinants of bank liquidity in Nepalese commercial banks: A comparative study of public banks, joint venture banks and private banks [printed text] / Kiran Chaulagain, Author . - 2018 . - 91p. ; GRP/Thesis + 8/B.
Languages : English
Descriptors: Bank liquidity Class number: 332.632 Abstract: Banks are financial institutions that play intermediary role in the economy through channeling financial resources from surplus (depositors) economic units to deficit (borrowers) units. One of the main functions of commercial banks is the availing of funds (monetary) to its customers: for a bank to be in a position to do so, it must be in a healthy liquidity position.Liquidity is the availability of cash in the amount and at the time needed at a reasonable cost. Liquidity management is one of the major functions of banking institutions because, in its absence, banks may collapse. So, it is necessary to identify determinants of liquidity in Nepalese context. Numerous recent empirical studies aimed to test determinants of bank’s liquidity were studied by various researchers in different countries. All these previous studies showed that the bank’s liquidity is influenced by both bank specific and macroeconomic factors. Bank specific factors consist of bank size, capital adequacy, non-performing loan, deposit to asset ratio, profitability etc. while macroeconomic factors include GDP growth rate, treasury bill rate, inflation rate, financial crisis etc.However, those factors which have statistically significant impact on liquidity in one country may not be replicated in another country.
The major objective of this study is to identify the determinants that affect the liquidity of commercial banks of Nepal and comparative study of determinants of liquidity of Nepalese commercial banks i.e. public banks, joint venture banks and private banks.The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross-sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design in order to analyze the determinants of liquidity in Nepalese commercial banks.
The result shows that NCC has highest liquid asset to total asset ratio (35.11times) and ADB has highest total loan to total deposit (105.45 percent) among the selected commercial banks throughout the study period. Similarly, the average capital adequacy ratio is highest for JBL (28.15 percent), average non-performing loan is highest for JBL (28.15 percent), average deposit to asset ratio is highest for NBL (91.55 percent), treasury bill rate is highest in year 2011 (8.35 percent), GDP growth rate is highest in year 2014 (5.40 percent), inflation rate is highest in year 2013 (9.9 percent) and average total asset is highest for NBL (105,571 million).
The descriptive statistics for the public banks reveals that the average total liquid asset to total asset is 3.07 times,average total loan to total deposit is 72.71 percent, average capital adequacy ratio is 2.57 percent, average non-performing loan ratio is 6.46 percent, average deposit to asset ratio is 82.53 percent, average size of public banks is 25.08 million. Similarly, the descriptive statistics for the joint venture banks reveals that the average total liquid asset to total asset is 10.58 times, average total loan to total deposit is 69.08 percent, average capital adequacy ratio is 11.84 percent, average non-performing loan ratio is 2.0 percent, average deposit to asset ratio is 86.93 percent, average size of joint venture banks is 24.62 million. Likewise, the descriptive statistics for the private banks reveals that that the average total liquid asset to total asset is 17.73 times, average total loan to total deposit is 81.75 percent, average capital adequacy ratio is 14.40 percent, average non-performing loan ratio is 1.64 percent, average deposit to asset ratio is 85.31 percent, average size of private banks is 23.09 million.The descriptive analysis shows that the average treasury bill rate, GDP growth rate and inflation rate are 3.90 percent, 4.32 percent and 8.95 percent respectively for the study period.
The correlation matrix of public bank shows that capital adequacy ratio, deposit to asset ratio, GDP growth rate and bank size are positively related to total liquid asset to total asset ratio (L1) whereas, non-performing loan, treasury bill rate and inflation rate are negatively relatedto total liquid asset to total asset ratio. The result also revealed that non-performing loan and treasury bill rate are negatively related with total loan to total deposit ratio (L2). However, capital adequacy ratio, deposit to asset ratio, GDP growth rate, inflation rate and bank size are positively related to total loan to total deposit ratio.The correlation matrix of joint venture bank reveals that capital adequacy ratio,non-performing loan, deposit to asset ratio, inflation rate and bank size have negative relationship with total liquid asset to total asset and treasury bill rate, GDP growth rate have a positive relation with total liquid asset to total asset. The result also reveals that capital adequacy ratio, non-performing loan, deposit asset ratio, GDP rate and bank size are negatively related to loans to deposit ratio. However, treasury bill rate and inflation rate are positively related to loans to deposit ratio.The correlation matrix of private banks shows the positive relation of capital adequacy ratio and GDP growth rate with total liquid asset to total asset ratio whereas non-performing loan, treasury bill rate, inflation rate and bank size reveals the negative relation with total liquid asset to total asset. The result also shows that capital adequacy ratio, treasury bill rate, and inflation rate are positively related to loans to deposit ratio. However, the non-performing loan, deposit to assets ratio, GDP rate and bank size are negatively related to loans to deposit ratio.
The regression result shows that the beta coefficients for capital adequacy ratio are positive and significant with liquidity (L1) for public and private banks.It indicates that capital adequacy ratio has positive impact on liquidity ratio.Likewise, beta coefficients for deposit asset ratio and GDP growth rate are positive and significant with liquidity (L1) for public, private and joint venture banks. It means deposit asset ratio and GDP growth rate are positive and significant with liquidity (L1). However, the beta coefficients for non-performing loans, treasury bill rate and inflation rate are negative and significant with liquidity for private, public and joint venture banks. It indicates that nonperforming loans, treasury bill rate and inflation rate have negative impact on liquidity. The result also shows that the beta coefficients for bank size are negative with liquidity ratio for joint venture and private banks. It indicates that bank size has negative impact on liquidity ratio. The regression resultalso shows that the beta coefficients for capital adequacy ratio are positive and significant with liquidity (L2) for public and private banks. It means that capital adequacy ratio has positive impact on liquidity. Likewise, beta coefficients for deposit asset ratio and inflation rate are positive and significant with liquidity (L2) for public, private and joint venture banks. It means deposit asset ratio and inflation rate are positive and significant with liquidity (L2). However, the beta coefficients for non-performing loans, treasury bill rate, GDP growth rate and bank size are negative and significant with liquidity for private, public and joint venture banks. It indicates that nonperforming loans, treasury bill rate, GDP growth rate and bank size have negative impact on liquidity.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 455/D 332.632 CHA Books Uniglobe Library Social Sciences Available
Title : Impact of Liquidity management on performance of Nepalese commercial banks: a comparative study of public, joint venture and private banks Material Type: printed text Authors: Narmila Bhusal, Author Publication Date: 2017 Pagination: 108p. Size: GRP/Thesis Accompanying material: 8/B Languages : English Descriptors: Bank liquidity
Liquidity (Economics)Class number: 332.109 Abstract: The impact of liquidity position in management of financial institution and other economic unit have remained fascinating and intriguing, though very elusive in the process of investment analysis. In financial system bank's role is differentiated as financial intermediaries, funds facilitator and supporter. Commercial banks accept deposits from individuals and businesses which make use of them for productive purposes in the whole economy. The banks are, therefore not only stores economy's wealth but also provide financial resource to the businesses. Due to the diversified operations banks may expose to liquidity risk, as they are absolutely accountable to make funds available, when required by the depositors or conversion of its financial assets in to liquid funds to meet their obligations (Ramzam and Zafar, 2014).
The major objective of the study is to analyze the impact of liquidity management on performance of Nepalese commercial banks.The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross-sectional data analysis has been undertaken from the study.The research design adopted in this study is descriptive and causal comparative research design as it deals with the relationship between capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total asset and firm size performance of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, and ADBL has highest average NIM among the selected commercial banks throughout the study period.Similarly, average capital ratio is highest for NIBL (28.81 percent), average leverage is highest for NBL (1.03 times), average liquidity ratio is highest for JBL (11.32 times), average liquid asset to deposit is highest for RBBL (64.08 percent), average liquid asset to total asset is highest for SCBL (52.09 percent) and average firm size is RBBL(114.59 billion).
The descriptive statistics of public bank shows that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 1.91 percent, 4.37 percent, 4.32 percent, 0.96 times, 2.12 times, 41.84 percent, 25.53 percent and 10.89 respectively.Similarly, descriptive statistics of joint venture banks reveals that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 2.15 percent, 3.49 percent, 9.31 percent, 0.91 times, 3.79 times, 42.44 percent, 36.82 percent and 10.69 respectively.The descriptive statistics of private banks reveals that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 1.38 percent, 3.15 percent, 12.76 percent, 0.88 times, 4.81 times, 30.84 percent, 25.57 percent and 10.38 respectively.
In case of public bank, the study found that capital ratio is positively correlated to return on assets and net interest margin while leverage, liquid asset to deposit liquid assets to total assets is negatively correlated to return on assets and net interest margin. The study of joint venture banks reveals that capital ratio is positively correlated to return on assets and net interest margin while leverage, liquid asset to deposit, liquid asset to total assets and firm size is negatively correlated to return on assets and net interest margin. Likewise, the study of private banks depicts that capital ratio, liquid asset to total assets is positively correlated to return on assets and net interest margin while leverage is negatively correlated to return on assets and net interest margin.
The regression analysis of public banks revealed that capital ratio, leverage and firm size have positive impact on return on assets. The leverage, liquid assets to deposit and liquid assets to total assets have negative impact on return on assets. Similarly, the capital ratio have positive impact on net interest margin whereas the leverage, liquidity ratio, liquid assets to deposit, liquid assets to total assets and firm size have negative impact on net interest margin. The regression analysis of joint venture banks revealed that capital ratio, liquidity ratio and firm size have positive impact on return on assets. The leverage, liquid assets to deposit and liquid assets to total assets have negative impact on return on assets. Similarly, the capital ratio have positive impact on net interest margin whereas the leverage, liquidity ratio, liquid assets to deposit, liquid assets to total assets and firm size have negative impact on net interest margin. The regression analysis of private banks revealed that liquid assets to total assets and firm size have positive impact on return on assets. The capital ratio, leverage, liquidity ratio and liquid assets to deposit have negative impact on return on assets. Similarly, the study revealed that liquidity ratio, liquid assets to deposit and liquid assets to total assets have positive impact on net interest margin whereas the capital ratio, leverage and firm size have negative impact on net interest margin.
Impact of Liquidity management on performance of Nepalese commercial banks: a comparative study of public, joint venture and private banks [printed text] / Narmila Bhusal, Author . - 2017 . - 108p. ; GRP/Thesis + 8/B.
Languages : English
Descriptors: Bank liquidity
Liquidity (Economics)Class number: 332.109 Abstract: The impact of liquidity position in management of financial institution and other economic unit have remained fascinating and intriguing, though very elusive in the process of investment analysis. In financial system bank's role is differentiated as financial intermediaries, funds facilitator and supporter. Commercial banks accept deposits from individuals and businesses which make use of them for productive purposes in the whole economy. The banks are, therefore not only stores economy's wealth but also provide financial resource to the businesses. Due to the diversified operations banks may expose to liquidity risk, as they are absolutely accountable to make funds available, when required by the depositors or conversion of its financial assets in to liquid funds to meet their obligations (Ramzam and Zafar, 2014).
The major objective of the study is to analyze the impact of liquidity management on performance of Nepalese commercial banks.The study is based on secondary data of 23 commercial banks with 138 observations for the period of 2009/10 to 2014/15. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross-sectional data analysis has been undertaken from the study.The research design adopted in this study is descriptive and causal comparative research design as it deals with the relationship between capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total asset and firm size performance of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, and ADBL has highest average NIM among the selected commercial banks throughout the study period.Similarly, average capital ratio is highest for NIBL (28.81 percent), average leverage is highest for NBL (1.03 times), average liquidity ratio is highest for JBL (11.32 times), average liquid asset to deposit is highest for RBBL (64.08 percent), average liquid asset to total asset is highest for SCBL (52.09 percent) and average firm size is RBBL(114.59 billion).
The descriptive statistics of public bank shows that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 1.91 percent, 4.37 percent, 4.32 percent, 0.96 times, 2.12 times, 41.84 percent, 25.53 percent and 10.89 respectively.Similarly, descriptive statistics of joint venture banks reveals that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 2.15 percent, 3.49 percent, 9.31 percent, 0.91 times, 3.79 times, 42.44 percent, 36.82 percent and 10.69 respectively.The descriptive statistics of private banks reveals that average return on assets, net interest margin, capital ratio, leverage, liquidity ratio, liquid asset to deposit, liquid asset to total assets and firm size is 1.38 percent, 3.15 percent, 12.76 percent, 0.88 times, 4.81 times, 30.84 percent, 25.57 percent and 10.38 respectively.
In case of public bank, the study found that capital ratio is positively correlated to return on assets and net interest margin while leverage, liquid asset to deposit liquid assets to total assets is negatively correlated to return on assets and net interest margin. The study of joint venture banks reveals that capital ratio is positively correlated to return on assets and net interest margin while leverage, liquid asset to deposit, liquid asset to total assets and firm size is negatively correlated to return on assets and net interest margin. Likewise, the study of private banks depicts that capital ratio, liquid asset to total assets is positively correlated to return on assets and net interest margin while leverage is negatively correlated to return on assets and net interest margin.
The regression analysis of public banks revealed that capital ratio, leverage and firm size have positive impact on return on assets. The leverage, liquid assets to deposit and liquid assets to total assets have negative impact on return on assets. Similarly, the capital ratio have positive impact on net interest margin whereas the leverage, liquidity ratio, liquid assets to deposit, liquid assets to total assets and firm size have negative impact on net interest margin. The regression analysis of joint venture banks revealed that capital ratio, liquidity ratio and firm size have positive impact on return on assets. The leverage, liquid assets to deposit and liquid assets to total assets have negative impact on return on assets. Similarly, the capital ratio have positive impact on net interest margin whereas the leverage, liquidity ratio, liquid assets to deposit, liquid assets to total assets and firm size have negative impact on net interest margin. The regression analysis of private banks revealed that liquid assets to total assets and firm size have positive impact on return on assets. The capital ratio, leverage, liquidity ratio and liquid assets to deposit have negative impact on return on assets. Similarly, the study revealed that liquidity ratio, liquid assets to deposit and liquid assets to total assets have positive impact on net interest margin whereas the capital ratio, leverage and firm size have negative impact on net interest margin.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 278/D 332.109 BHU Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Liquidity management and banks profitability: a case of Nepalese commercial banks Material Type: printed text Authors: Geeta Thapa Magar, Author Publication Date: 2016 Pagination: 88p. Size: GRP/Thesis Accompanying material: 7/B Languages : English Descriptors: Bank liquidity Class number: 658.155 Abstract: Liquidity management is important in the current financial situations and the state of the world economy. The importance of liquidity management as it affects corporate profitability in today’s business cannot be over emphasized. Liquidity plays a significant role in the successful functioning of banks (Eljelly, 2004). A major adequate financial intermediation requires the purposeful attention of the bank management to profitability and liquidity, which are two conflicting goals of the commercial banks. These goals are parallel in the sense that an attempt for a bank to achieve higher profitability will certainly erode its liquidity and solvency positions and vice versa (Olagunju et al., 2011). While the immediate survival of banks anchors on its liquidity, its long term survival and growth depends on profitability. Thus, banks should ensure that it does not suffer from lack of or excess liquidity to cover up its short-term obligations (Kurawa & Abubakar, 2014). Baral (2005) suggested that maintaining the high liquidity position to minimize liquidity risks adversely affects the profitability of financial institutions.
This study investigates the impact of liquidity management on profitability of commercial banks of Nepal. The specific objectives of this study are: a) to identify the most important indicators of the liquidity management, b) to access the effect of each indicator on the banks' profitability, c) to determine the liquidity management efficiency of commercial banks of Nepal, d) to analyze the liquidity position on the basis of financial ratios of the selected Nepalese commercial banks in Nepal, e) to examine the relationship of firm size and financial leverage with the Nepalese commercial banks profitability.
The study has employed descriptive and causal comparative research designs to deal with the fundamental issues associated with the relationship between the liquidity management and banks profitability and liquidity factors influencing the profitability in the context of Nepal. The study is based on secondary data. The variables used in the study are categorized into liquidity management indicators as current ratio, liquid ratio, capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio and control variables as firm size and financial leverage. Secondary data were collected from supervision reports of NRB and various annual reports of different commercial banks. This study covers data for 7 years ranging for year 2007/08 to 2013/14. Regression models were estimated to test the significance of the liquidity management variables on banks profitability.
The study reveals that there is positive relationship of return on assets with liquid ratio, capital adequacy ratio, loan and advance to deposit ratio and firm size. Current ratio, cash to deposit ratio and financial leverage is negatively related with return on assets. Similarly, there is positive relationship of return on equity with the liquid ratio, firm size and financial leverage. However current ratio, capital adequacy ratio, cash to deposit ratio and loan and advance to deposit ratio are negatively related with the return on equity. The result also shows that there is positive relationship of net interest margin with capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio and firm size whereas, current ratio, liquid ratio and financial leverage are negatively related with the net interest margin. The study revealed that current ratio has negatively and highly significant impact on profitability of banks. Hence, the banks willing to increase the performance need to reduce current ratio. Banks are recommended to decrease liquid assets in comparison to total assets to have higher net interest as the study shows negative relationship between liquid assets and net interest margin. Banks should focus on to decrease the cash to deposit ratio to increase the return on equity as result indicates the negative and significant relationship between cash to deposit ratio and return on equity.
The major conclusion of this study is that the profitability of Nepalese commercial banks is highly influenced by the current ratio. Commercial banks having high current assets in comparison to current liabilities become less profitable. There is negative and highly significant relationship between the current ratio and that the relationship is more evident in firms with high current ratio. Therefore, more than enough current assets cause decrease in bank’s profitability. The study also concludes that the liquid ratio, capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio, firm size and financial leverage are statically significant factors that determines the profitability of commercial banks in Nepal.
Liquidity management and banks profitability: a case of Nepalese commercial banks [printed text] / Geeta Thapa Magar, Author . - 2016 . - 88p. ; GRP/Thesis + 7/B.
Languages : English
Descriptors: Bank liquidity Class number: 658.155 Abstract: Liquidity management is important in the current financial situations and the state of the world economy. The importance of liquidity management as it affects corporate profitability in today’s business cannot be over emphasized. Liquidity plays a significant role in the successful functioning of banks (Eljelly, 2004). A major adequate financial intermediation requires the purposeful attention of the bank management to profitability and liquidity, which are two conflicting goals of the commercial banks. These goals are parallel in the sense that an attempt for a bank to achieve higher profitability will certainly erode its liquidity and solvency positions and vice versa (Olagunju et al., 2011). While the immediate survival of banks anchors on its liquidity, its long term survival and growth depends on profitability. Thus, banks should ensure that it does not suffer from lack of or excess liquidity to cover up its short-term obligations (Kurawa & Abubakar, 2014). Baral (2005) suggested that maintaining the high liquidity position to minimize liquidity risks adversely affects the profitability of financial institutions.
This study investigates the impact of liquidity management on profitability of commercial banks of Nepal. The specific objectives of this study are: a) to identify the most important indicators of the liquidity management, b) to access the effect of each indicator on the banks' profitability, c) to determine the liquidity management efficiency of commercial banks of Nepal, d) to analyze the liquidity position on the basis of financial ratios of the selected Nepalese commercial banks in Nepal, e) to examine the relationship of firm size and financial leverage with the Nepalese commercial banks profitability.
The study has employed descriptive and causal comparative research designs to deal with the fundamental issues associated with the relationship between the liquidity management and banks profitability and liquidity factors influencing the profitability in the context of Nepal. The study is based on secondary data. The variables used in the study are categorized into liquidity management indicators as current ratio, liquid ratio, capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio and control variables as firm size and financial leverage. Secondary data were collected from supervision reports of NRB and various annual reports of different commercial banks. This study covers data for 7 years ranging for year 2007/08 to 2013/14. Regression models were estimated to test the significance of the liquidity management variables on banks profitability.
The study reveals that there is positive relationship of return on assets with liquid ratio, capital adequacy ratio, loan and advance to deposit ratio and firm size. Current ratio, cash to deposit ratio and financial leverage is negatively related with return on assets. Similarly, there is positive relationship of return on equity with the liquid ratio, firm size and financial leverage. However current ratio, capital adequacy ratio, cash to deposit ratio and loan and advance to deposit ratio are negatively related with the return on equity. The result also shows that there is positive relationship of net interest margin with capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio and firm size whereas, current ratio, liquid ratio and financial leverage are negatively related with the net interest margin. The study revealed that current ratio has negatively and highly significant impact on profitability of banks. Hence, the banks willing to increase the performance need to reduce current ratio. Banks are recommended to decrease liquid assets in comparison to total assets to have higher net interest as the study shows negative relationship between liquid assets and net interest margin. Banks should focus on to decrease the cash to deposit ratio to increase the return on equity as result indicates the negative and significant relationship between cash to deposit ratio and return on equity.
The major conclusion of this study is that the profitability of Nepalese commercial banks is highly influenced by the current ratio. Commercial banks having high current assets in comparison to current liabilities become less profitable. There is negative and highly significant relationship between the current ratio and that the relationship is more evident in firms with high current ratio. Therefore, more than enough current assets cause decrease in bank’s profitability. The study also concludes that the liquid ratio, capital adequacy ratio, cash to deposit ratio, loan and advance to deposit ratio, firm size and financial leverage are statically significant factors that determines the profitability of commercial banks in Nepal.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 174/D 658.155 MAG Books Uniglobe Library Technology Not for loan
Title : Relationship between liquidity risk and credit risk: a case of Nepalese commercial banks Material Type: printed text Authors: Umesh Raj Pant, Author Publication Date: 2017 Pagination: 110p. Size: GRP/Thesis Accompanying material: 8/B Languages : English Descriptors: Bank liquidity Class number: 339.53 Abstract: Liquidity risk and credit risk are perceived as the major factors that influence the overall performance of the bank and financial institutions. Credit risk is one of the major factor which impact the overall performance of the banks therefore it should be managed properly otherwise it would lead to the total collapse of banks. Liquidity risk is another type of risk which bank cannot neglect as the greater liquidity risk leads to poor day to day operational performance. Particularly, many researchers believe that there is connection between liquidity risk and credit risk of banks. Many studies published to investigate this relationship. In regards to the relationship between liquidity risk and credit risk, researcher found different results. Some of the scholars believed that, liquidity risk and credit risk has positive relationship, some believed that there is negative relationship whereas, some scholars believed that there is no connection between these two risk factors.
This major objective of the study is to examine the relationship between liquidity risk and credit risk in case of Nepalese commercial banks. The study has employed descriptive and causal comparative research designs to deal with the major issues associated with relationship between liquidity risk and credit risk and factors influencing these parameters in the context of Nepal. The study is based on secondary data. The relationship between dependent and independent variables are analyzed in single step and multi-step regression analysis. The other variables used in the study are categorized into bank specific variables (bank size, assets quality i.e. loan loss provision to total loan, management inefficiency, capital adequacy ratio) and control variables (inflation rate and economic growth rate). The study covers the data from 2009/10 to 2014/15.
It is observed that credit risk, asset quality, economic growth rate, inflation rate, management inefficiency and capital adequacy ratio has positive correlation between liquidity risk of selected commercial bank during the study period. Bank size is negatively correlated with liquidity risk whereas positively correlated with credit risk during the study period. Similarly, asset quality, economic growth rate, inflation rate and management inefficiency ratio is positively related with credit risk during the observation period. Moreover, it is also found that capital adequacy ratio has negative impact on credit risk of selected commercial banks during the study period. More specifically, this study reveals that liquidity risk and credit risk are positively related. Likewise, the study also shows that higher the bank size, lower would be the liquidity risk. However, asset quality i.e. loan loss provision to total loan has positive impact on liquidity risk.This shows that higher loan loss provision leads to high level of liquidity risk. Likewise, management inefficiency and asset quality is positively related to credit risk whereas, capital adequacy ratio is negatively related to credit risk.
Finally, the study concludes that major determinant of liquidity risk and credit risk are assets quality i.e. loan loss provision to total loan and management inefficiency followed by capital adequacy ratio, bank size. However, the result shows that macroeconomic variables viz. inflation and economic growth rate has no any significant impact on liquidity risk and credit risk.The study found positive relationship between liquidity risk and credit risk. Hence, the banks should give due attention to manage both risks factors for the stability of the bank.
Relationship between liquidity risk and credit risk: a case of Nepalese commercial banks [printed text] / Umesh Raj Pant, Author . - 2017 . - 110p. ; GRP/Thesis + 8/B.
Languages : English
Descriptors: Bank liquidity Class number: 339.53 Abstract: Liquidity risk and credit risk are perceived as the major factors that influence the overall performance of the bank and financial institutions. Credit risk is one of the major factor which impact the overall performance of the banks therefore it should be managed properly otherwise it would lead to the total collapse of banks. Liquidity risk is another type of risk which bank cannot neglect as the greater liquidity risk leads to poor day to day operational performance. Particularly, many researchers believe that there is connection between liquidity risk and credit risk of banks. Many studies published to investigate this relationship. In regards to the relationship between liquidity risk and credit risk, researcher found different results. Some of the scholars believed that, liquidity risk and credit risk has positive relationship, some believed that there is negative relationship whereas, some scholars believed that there is no connection between these two risk factors.
This major objective of the study is to examine the relationship between liquidity risk and credit risk in case of Nepalese commercial banks. The study has employed descriptive and causal comparative research designs to deal with the major issues associated with relationship between liquidity risk and credit risk and factors influencing these parameters in the context of Nepal. The study is based on secondary data. The relationship between dependent and independent variables are analyzed in single step and multi-step regression analysis. The other variables used in the study are categorized into bank specific variables (bank size, assets quality i.e. loan loss provision to total loan, management inefficiency, capital adequacy ratio) and control variables (inflation rate and economic growth rate). The study covers the data from 2009/10 to 2014/15.
It is observed that credit risk, asset quality, economic growth rate, inflation rate, management inefficiency and capital adequacy ratio has positive correlation between liquidity risk of selected commercial bank during the study period. Bank size is negatively correlated with liquidity risk whereas positively correlated with credit risk during the study period. Similarly, asset quality, economic growth rate, inflation rate and management inefficiency ratio is positively related with credit risk during the observation period. Moreover, it is also found that capital adequacy ratio has negative impact on credit risk of selected commercial banks during the study period. More specifically, this study reveals that liquidity risk and credit risk are positively related. Likewise, the study also shows that higher the bank size, lower would be the liquidity risk. However, asset quality i.e. loan loss provision to total loan has positive impact on liquidity risk.This shows that higher loan loss provision leads to high level of liquidity risk. Likewise, management inefficiency and asset quality is positively related to credit risk whereas, capital adequacy ratio is negatively related to credit risk.
Finally, the study concludes that major determinant of liquidity risk and credit risk are assets quality i.e. loan loss provision to total loan and management inefficiency followed by capital adequacy ratio, bank size. However, the result shows that macroeconomic variables viz. inflation and economic growth rate has no any significant impact on liquidity risk and credit risk.The study found positive relationship between liquidity risk and credit risk. Hence, the banks should give due attention to manage both risks factors for the stability of the bank.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 265/D 339.53 PAN Thesis/Dissertation Uniglobe Library Social Sciences Available
Permalink
