| 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.
|
|
Refine your search Apply to external sourcesImpact of Liquidity management on performance of Nepalese commercial banks: a comparative study of public, joint venture and private banks / Narmila Bhusal
