| Title : | Factors affecting risk taking behavior in Nepalese Commercial Banks | | Material Type: | printed text | | Authors: | Silu Sayami, Author | | Pagination: | 118p. | | Size: | GRP/Thesis | | Accompanying material: | 11/B | | Languages : | English | | Descriptors: | risk taking behavior
| | Class number: | 332.16 | | Abstract: | The result reveals that average credit risk is highest for ADBL (Rs. 1.86 billion) and lowest for SUBL (Rs. 0.07 billion). The average operational risk is highest for ADBL (63.04 percent) and lowest for NABIL (25.47 percent). The average capital adequacy ratio is highest for ADBL (17.26 percent) and lowest for CTBL (9.25 percent). The average return on assets is highest for NBBL (3.25 percent) and lowest for MBL (0.71 percent). The average liquidity ratio is highest for ADBL (104.03 percent) and lowest for SCBL (53.07 percent). The average bank size is highest for (Rs. 83.34 billion) and lowest for NCC (Rs. 22.87 billion).Likewise, money supply is highest in year 2011/12 (27.4 percent) and lowest in year 2015/16 (5.8 percent) and GDP growth rate is highest in year 2013/14 (13.7 percent) and lowest for 2015/16 (0.8 percent).
The descriptive statistics indicates that the average credit risk, average operational risk, average capital adequacy ratio, liquidity ratio, average money supply, average GDP growth rate and average bank size is Rs. 0.324 billion, 39.95 percent, 12.28 percent, 78.64 percent, 14.24 percent, 3.61 percent and Rs 45.63 billion respectively. The study has more domestic banks than foreign owned banks as an average of foreign ownership is 0.30.
The correlation matrix shows that capital adequacy ratio, return on assets, liquidity ratio and bank size are positively correlated to credit risk whereas foreign ownership, money supply and GDP growth rate is negatively correlated to credit risk. The result also shows that capital adequacy ratio, liquidity ratio, Money supply and GDP growth rate are positively correlated to operational risk whereas the return on assets, foreign ownership and bank size are negatively correlated to operational risk.
The regression result shows that capital adequacy ratio and return on assets have positive and significant impact on credit risk. This indicates that higher the capital adequacy ratio and return on assets, higher would be the credit risk taking by banks. Similarly, liquidity ratio has positive and significant impact on credit risk. This reveals that higher the liquidity ratio, higher would be the credit risk. However, foreign ownership has negative impact on credit risk. The result denotes that higher the foreign ownership, lower would be the credit risk. Similarly, money supply and GDP growth rate have negative impact on credit risk. This reveals that higher the money supply, lower would be the credit risk Likewise, this also shows that higher the GDP growth rate, lower would be the credit risk. However bank size has positive and significant impact on credit risk which reveals that larger the bank size, higher would be the credit risk.
The regression result shows that capital adequacy ratio has positive and significant impact on operational risk. This indicates that higher the capital adequacy ratio, higher would be the operational risk taking by banks. Similarly, return on assets and foreign ownership have negative and significant impact on operational risk. This indicates that higher the return on assets, lower would be the operational risk. This also indicates that higher the foreign ownership, lower would be the operational risk. However, liquidity ratio and money supply has positive and significant impact on operational risk. This reveals that higher the liquidity ratio, higher would be the operational risk. This also indicates that higher the money supply, higher would be the operational risk.Likewise, GDP growth rate has positive impact on operational risk. This shows that higher the GDP growth rate, higher would be the operational risk. Similarly, bank size has positive and significant impact on operational risk which reveals that larger the bank size, higher would be the operational risk.
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Factors affecting risk taking behavior in Nepalese Commercial Banks [printed text] / Silu Sayami, Author . - [s.d.] . - 118p. ; GRP/Thesis + 11/B. Languages : English | Descriptors: | risk taking behavior
| | Class number: | 332.16 | | Abstract: | The result reveals that average credit risk is highest for ADBL (Rs. 1.86 billion) and lowest for SUBL (Rs. 0.07 billion). The average operational risk is highest for ADBL (63.04 percent) and lowest for NABIL (25.47 percent). The average capital adequacy ratio is highest for ADBL (17.26 percent) and lowest for CTBL (9.25 percent). The average return on assets is highest for NBBL (3.25 percent) and lowest for MBL (0.71 percent). The average liquidity ratio is highest for ADBL (104.03 percent) and lowest for SCBL (53.07 percent). The average bank size is highest for (Rs. 83.34 billion) and lowest for NCC (Rs. 22.87 billion).Likewise, money supply is highest in year 2011/12 (27.4 percent) and lowest in year 2015/16 (5.8 percent) and GDP growth rate is highest in year 2013/14 (13.7 percent) and lowest for 2015/16 (0.8 percent).
The descriptive statistics indicates that the average credit risk, average operational risk, average capital adequacy ratio, liquidity ratio, average money supply, average GDP growth rate and average bank size is Rs. 0.324 billion, 39.95 percent, 12.28 percent, 78.64 percent, 14.24 percent, 3.61 percent and Rs 45.63 billion respectively. The study has more domestic banks than foreign owned banks as an average of foreign ownership is 0.30.
The correlation matrix shows that capital adequacy ratio, return on assets, liquidity ratio and bank size are positively correlated to credit risk whereas foreign ownership, money supply and GDP growth rate is negatively correlated to credit risk. The result also shows that capital adequacy ratio, liquidity ratio, Money supply and GDP growth rate are positively correlated to operational risk whereas the return on assets, foreign ownership and bank size are negatively correlated to operational risk.
The regression result shows that capital adequacy ratio and return on assets have positive and significant impact on credit risk. This indicates that higher the capital adequacy ratio and return on assets, higher would be the credit risk taking by banks. Similarly, liquidity ratio has positive and significant impact on credit risk. This reveals that higher the liquidity ratio, higher would be the credit risk. However, foreign ownership has negative impact on credit risk. The result denotes that higher the foreign ownership, lower would be the credit risk. Similarly, money supply and GDP growth rate have negative impact on credit risk. This reveals that higher the money supply, lower would be the credit risk Likewise, this also shows that higher the GDP growth rate, lower would be the credit risk. However bank size has positive and significant impact on credit risk which reveals that larger the bank size, higher would be the credit risk.
The regression result shows that capital adequacy ratio has positive and significant impact on operational risk. This indicates that higher the capital adequacy ratio, higher would be the operational risk taking by banks. Similarly, return on assets and foreign ownership have negative and significant impact on operational risk. This indicates that higher the return on assets, lower would be the operational risk. This also indicates that higher the foreign ownership, lower would be the operational risk. However, liquidity ratio and money supply has positive and significant impact on operational risk. This reveals that higher the liquidity ratio, higher would be the operational risk. This also indicates that higher the money supply, higher would be the operational risk.Likewise, GDP growth rate has positive impact on operational risk. This shows that higher the GDP growth rate, higher would be the operational risk. Similarly, bank size has positive and significant impact on operational risk which reveals that larger the bank size, higher would be the operational risk.
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