| Title : | Effect of joint venture banks on the financial performance of Nepalese domestic owned banks | | Material Type: | printed text | | Authors: | Sunil Lamichhane, Author | | Publication Date: | 2016 | | Pagination: | 100p. | | Size: | GRP/Thesis | | Accompanying material: | 8/B | | Languages : | English | | Descriptors: | Joint ventures
| | Class number: | 332.150 | | Abstract: | Remittances are the major sources of foreign exchange earnings and important implications for the remittances-recipient countries because of their increasing volume. The inflow of remittances being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of the developing nations.
The link between remittances, financial development, economic growth and poverty alleviation is an important issue for the remittances dependence countries. Development of the banking sector reducing the transaction costs that might motivate the investor to invest in different investment projects with high rate of return and increases the economic growth of the country. Remittances affect banking services, processing fees and transactions costs. The potential to collect these fees might induce banks to expand their outreach, locate close to remittance recipients and increase their demands for banking services, since banks offer households a safe place to store the temporary excess cash. Entrepreneurs in developing countries confront much less efficient credit markets and available evidence indicates that access to credit is among their biggest concerns (Paulson et al., 2000). Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows.
The major objective of the study isto examine the relationship between remittance and credit disbursement of banking sector in Nepal. The study is based on the secondary data of 20 Nepalese commercial banks for the period of 2008/09 to 2014/15 with a total of 140 observations. 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 statistics, correlation analysis and regression analysis as it deals with the relationship between remittance and credit disbursement of banking sector in Nepal.
The result shows that the average total loan is highest for ADBL (Rs.49 billion) and lowest for NMB (Rs.0.77 billion). The average non-performing loan is highest for NBB (9.51 percent) and lowest for EBL (0.53 percent). The average total deposit is highest for RBB (Rs. 91.43 billion) and lowest for LBL (Rs. 10.99 billion). The average total size is highest for RBB (Rs.112.46 billion) and lowest for LBL (Rs. 12.62 billion). The average ROA is highest for ADBL (3.06 percent) and lowest for MBL (0.61 percent). The average interest rate is highest for ADBL (11.95 percent) and lowest for SCBL (6.89 percent). The remittance is highest in year 2015 (Rs. 617 billion) and lowest in year 2009 (Rs.209 billion). The GDP growth rate is highest in year in 2014 (5.4 percent) and lowest in 2015 (3.9 percent). The inflation rate is highest in year 2009 (11.1 percent) and lowest in year 2015 (7.2 percent).
The descriptive analysis shows that the average total loan and non-performing loan is Rs.24.94 billion and 2.53 percent respectively. Similarly, the descriptive result shows that the average remittance, total deposit, total size, return on assets, interest rate, GDP and inflation is Rs.378.54 billion, Rs.35.14 billion, Rs.44.39 billion, 1.81 percent, 9.76 percent, 4.26 percent and 9.26 percent respectively.
The study shows that there is positive relationship of remittance, total deposit, total size, and return on assets withtotal loan. Similarly, Interest rate, GDP and Inflation have negative relationship with total loan. Likewise, the study shows thatthere is negative relationship of remittance and GDP withNPL. Similarly, total deposit and total size have positive relationship with NPL. However, the interest rate and ROA have positive relationship with NPL. Likewise, there is positive relationship between inflation and NPL.
The regression analysis shows that remittance has significant positive impact on total loan. Similarly, total deposit, total size, ROA have significant positive impact on total loan. Likewise, interest rate and inflation have negative impact on total loan. However, remittance has significant negative impact on NPL. Similarly, interest rate has significant positive impact on NPL. Likewise, total size, ROA and GDPhave negative impact on NPL. Inflation has positive impact on NPL.
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Effect of joint venture banks on the financial performance of Nepalese domestic owned banks [printed text] / Sunil Lamichhane, Author . - 2016 . - 100p. ; GRP/Thesis + 8/B. Languages : English | Descriptors: | Joint ventures
| | Class number: | 332.150 | | Abstract: | Remittances are the major sources of foreign exchange earnings and important implications for the remittances-recipient countries because of their increasing volume. The inflow of remittances being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of the developing nations.
The link between remittances, financial development, economic growth and poverty alleviation is an important issue for the remittances dependence countries. Development of the banking sector reducing the transaction costs that might motivate the investor to invest in different investment projects with high rate of return and increases the economic growth of the country. Remittances affect banking services, processing fees and transactions costs. The potential to collect these fees might induce banks to expand their outreach, locate close to remittance recipients and increase their demands for banking services, since banks offer households a safe place to store the temporary excess cash. Entrepreneurs in developing countries confront much less efficient credit markets and available evidence indicates that access to credit is among their biggest concerns (Paulson et al., 2000). Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows.
The major objective of the study isto examine the relationship between remittance and credit disbursement of banking sector in Nepal. The study is based on the secondary data of 20 Nepalese commercial banks for the period of 2008/09 to 2014/15 with a total of 140 observations. 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 statistics, correlation analysis and regression analysis as it deals with the relationship between remittance and credit disbursement of banking sector in Nepal.
The result shows that the average total loan is highest for ADBL (Rs.49 billion) and lowest for NMB (Rs.0.77 billion). The average non-performing loan is highest for NBB (9.51 percent) and lowest for EBL (0.53 percent). The average total deposit is highest for RBB (Rs. 91.43 billion) and lowest for LBL (Rs. 10.99 billion). The average total size is highest for RBB (Rs.112.46 billion) and lowest for LBL (Rs. 12.62 billion). The average ROA is highest for ADBL (3.06 percent) and lowest for MBL (0.61 percent). The average interest rate is highest for ADBL (11.95 percent) and lowest for SCBL (6.89 percent). The remittance is highest in year 2015 (Rs. 617 billion) and lowest in year 2009 (Rs.209 billion). The GDP growth rate is highest in year in 2014 (5.4 percent) and lowest in 2015 (3.9 percent). The inflation rate is highest in year 2009 (11.1 percent) and lowest in year 2015 (7.2 percent).
The descriptive analysis shows that the average total loan and non-performing loan is Rs.24.94 billion and 2.53 percent respectively. Similarly, the descriptive result shows that the average remittance, total deposit, total size, return on assets, interest rate, GDP and inflation is Rs.378.54 billion, Rs.35.14 billion, Rs.44.39 billion, 1.81 percent, 9.76 percent, 4.26 percent and 9.26 percent respectively.
The study shows that there is positive relationship of remittance, total deposit, total size, and return on assets withtotal loan. Similarly, Interest rate, GDP and Inflation have negative relationship with total loan. Likewise, the study shows thatthere is negative relationship of remittance and GDP withNPL. Similarly, total deposit and total size have positive relationship with NPL. However, the interest rate and ROA have positive relationship with NPL. Likewise, there is positive relationship between inflation and NPL.
The regression analysis shows that remittance has significant positive impact on total loan. Similarly, total deposit, total size, ROA have significant positive impact on total loan. Likewise, interest rate and inflation have negative impact on total loan. However, remittance has significant negative impact on NPL. Similarly, interest rate has significant positive impact on NPL. Likewise, total size, ROA and GDPhave negative impact on NPL. Inflation has positive impact on NPL.
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