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Refine your search Apply to external sourcesAttitude and selection behavior of individual mutual fund investors in Nepal / Mansun K.C
Title : Attitude and selection behavior of individual mutual fund investors in Nepal Material Type: printed text Authors: Mansun K.C, Author Publication Date: 2016 Pagination: 72p. Size: GRP/Thesis Accompanying material: 5/B General note: Including bibilography Languages : English Descriptors: Mutual funds
NepalClass number: 332.632 Abstract: Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being part of financial market mutual funds industry is responding very fast by understanding the dynamics of investor‟s perception towards rewards. They are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy (Walia & Kiran, 2009). Mutual funds provide an option of investing without getting loss in the complexities. Most importantly, mutual funds provide risk diversifications among the primary tenets of portfolio management. Majority of the investors are not necessarily well qualified to apply the theories of portfolio structuring to their holdings and hence would be better off leaving the job to a professional. The basic needs which an investor tries to fulfill through the investment includes security of original capital, wealth accumulation, comfort factor, tax efficiency, life cover, income, simplicity and ease of withdrawal (Ajaz& Gupta, 2012). Sinday & Zanvar (2010) analyzed the effect of demographic factors on investor‟s level of risk tolerance regarding the choice of investment. The result of the study showed that demographic factors of investors such as age, educational qualification, income level, effect the investor‟s level of risk tolerance.Chetan & Sharma (2014) examined the awareness among the investor community in choosing the best mutual fund scheme. Study showed that sufficient amount of information about mutual funds is not available publicly. The result shows that age and income level are negatively related to favorable attitude towards mutual fund. From above discussions, it can be concluded that studies devoted to attitude and selection behavior of individual mutual fund investors are of greater significance. It has become imperative to study mutual funds from a different angle, i.e., to focus on investor‟s expectations and uncover the unidentified parameters that account for their dissatisfaction. Taking a lead from this, an attempt is also made to find out the important mutual fund product attributes that are essential to influence the purchases decision of the investors.
The major objective of the study is to analyze the investor‟s perception towards mutual fund. The other specific objectives are to evaluate the awareness level of investor regarding mutual fund, to examine the investment pattern with respect to demographic variables like age, gender, education level and income level, to find out the factors individual investor consider in investment choices of mutual fund schemes, to analyze factors investor values in forming favorable attitude toward mutual fund.
All the data required for this analytical study has been obtained mainly from primary sources. To reduce the complexity of data responses questionnaire were distributed, among those investors only who had prior experience of mutual fund investment. Besides, an effort has also been made to describe factors and other demographic characteristics of an individual investor contributes to selection behavior of mutual fund schemes in Nepal consisting of 165 respondents taken from 8 investment banks, 3 brokerage firms and 2 independent research and management firms. The questions were asked in the form of Likert scale questions. The Likert scale questions of different variables were measured in 5 point scale. The study has identified three factors which reflect investor‟s favorable attitude towards MF, and in selection behavior of different MF schemes. Among them the most important is monetary and financial factor, Information and image factor followed by market awareness if individual investors.Majority of investors i.e. 40.6 percent confident in their abilities, 57 percent take full charge of their investment decision, 58.2 percent have specific acquired investment skills and 52.1percent have knowledge about the how capital market works and how to reap benefit through transactions. Majority of respondents (43 percent) are partially aware about mutual fund investment, 23 percent of respondent are only aware about their invested particular fund schemes. The first preferred factor that is responsible for investment in mutual fund is return potential, second ranked factor is affordability, third diversification, fourth professional management and final and fifth rank is liquidity. The study concludes that financial factor, market awareness factor, Information and image factor, age, occupation, qualification and annual income of investor have significant effect over forming favorable attitude of investor towards mutual fund and in selection behavior mutual fund schemes. The major conclusion of the study is that increase in age of the investors leads to decrease in the investment in mutual fund. Similarly, better the monetary and financial position of the investors, favorable would be the attitudes towards investment in mutual fund. Likewise, good market information also leads to favorable attitudes towards mutual fund investors. The study also shows that market related information condition have positive relationship with favorable attitude towards investment in mutual fund which indicates that the information condition about mutual fund will encourage investors to demonstrated favorable attitude and willingness to invest in different fund schemes.Attitude and selection behavior of individual mutual fund investors in Nepal [printed text] / Mansun K.C, Author . - 2016 . - 72p. ; GRP/Thesis + 5/B.
Including bibilography
Languages : English
Descriptors: Mutual funds
NepalClass number: 332.632 Abstract: Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being part of financial market mutual funds industry is responding very fast by understanding the dynamics of investor‟s perception towards rewards. They are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy (Walia & Kiran, 2009). Mutual funds provide an option of investing without getting loss in the complexities. Most importantly, mutual funds provide risk diversifications among the primary tenets of portfolio management. Majority of the investors are not necessarily well qualified to apply the theories of portfolio structuring to their holdings and hence would be better off leaving the job to a professional. The basic needs which an investor tries to fulfill through the investment includes security of original capital, wealth accumulation, comfort factor, tax efficiency, life cover, income, simplicity and ease of withdrawal (Ajaz& Gupta, 2012). Sinday & Zanvar (2010) analyzed the effect of demographic factors on investor‟s level of risk tolerance regarding the choice of investment. The result of the study showed that demographic factors of investors such as age, educational qualification, income level, effect the investor‟s level of risk tolerance.Chetan & Sharma (2014) examined the awareness among the investor community in choosing the best mutual fund scheme. Study showed that sufficient amount of information about mutual funds is not available publicly. The result shows that age and income level are negatively related to favorable attitude towards mutual fund. From above discussions, it can be concluded that studies devoted to attitude and selection behavior of individual mutual fund investors are of greater significance. It has become imperative to study mutual funds from a different angle, i.e., to focus on investor‟s expectations and uncover the unidentified parameters that account for their dissatisfaction. Taking a lead from this, an attempt is also made to find out the important mutual fund product attributes that are essential to influence the purchases decision of the investors.
The major objective of the study is to analyze the investor‟s perception towards mutual fund. The other specific objectives are to evaluate the awareness level of investor regarding mutual fund, to examine the investment pattern with respect to demographic variables like age, gender, education level and income level, to find out the factors individual investor consider in investment choices of mutual fund schemes, to analyze factors investor values in forming favorable attitude toward mutual fund.
All the data required for this analytical study has been obtained mainly from primary sources. To reduce the complexity of data responses questionnaire were distributed, among those investors only who had prior experience of mutual fund investment. Besides, an effort has also been made to describe factors and other demographic characteristics of an individual investor contributes to selection behavior of mutual fund schemes in Nepal consisting of 165 respondents taken from 8 investment banks, 3 brokerage firms and 2 independent research and management firms. The questions were asked in the form of Likert scale questions. The Likert scale questions of different variables were measured in 5 point scale. The study has identified three factors which reflect investor‟s favorable attitude towards MF, and in selection behavior of different MF schemes. Among them the most important is monetary and financial factor, Information and image factor followed by market awareness if individual investors.Majority of investors i.e. 40.6 percent confident in their abilities, 57 percent take full charge of their investment decision, 58.2 percent have specific acquired investment skills and 52.1percent have knowledge about the how capital market works and how to reap benefit through transactions. Majority of respondents (43 percent) are partially aware about mutual fund investment, 23 percent of respondent are only aware about their invested particular fund schemes. The first preferred factor that is responsible for investment in mutual fund is return potential, second ranked factor is affordability, third diversification, fourth professional management and final and fifth rank is liquidity. The study concludes that financial factor, market awareness factor, Information and image factor, age, occupation, qualification and annual income of investor have significant effect over forming favorable attitude of investor towards mutual fund and in selection behavior mutual fund schemes. The major conclusion of the study is that increase in age of the investors leads to decrease in the investment in mutual fund. Similarly, better the monetary and financial position of the investors, favorable would be the attitudes towards investment in mutual fund. Likewise, good market information also leads to favorable attitudes towards mutual fund investors. The study also shows that market related information condition have positive relationship with favorable attitude towards investment in mutual fund which indicates that the information condition about mutual fund will encourage investors to demonstrated favorable attitude and willingness to invest in different fund schemes.Hold
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Barcode Call number Media type Location Section Status 241/D 332.632 KCM Thesis/Dissertation Uniglobe Library Social Sciences Available
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.
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Barcode Call number Media type Location Section Status 259/D 332.632 BHA Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Bank risk, solvency and profitability in the Nepalese commercial Banks Material Type: printed text Authors: Pokharel Ghanashyam, Author Publication Date: 2017 Pagination: 102p. Languages : English Descriptors: Bank risk Class number: 332.632 Abstract: Commercial banks play an important role for economic development and foster economic growth by providing number of financial services. One of the important functions of the commercial banks is the financial intermediation functions and thus it transfers the fund from surplus units to the deficit units. The survival and success of a financial organization depends critically on the efficiency of managing these risks (Khan & Ahmed, 2001).Solvency and bank risk management is a process that enables shareholders of the bank to maximize their profit without exceeding an acceptable risk. (JasienÄ—,2012). Risk management is the identification, assessment and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events (Njogo, 2012).Risk management has always been a focal point for finance managers in banking industry (Dima&Orzea, 2014).Solvency refers to the capacity of the business to meet its short-term and long-term obligations. Short-term obligations include creditors, bank loans and bills payable and long-term obligations consists of debentures, long-term loans and long term credits(Ramana et al., 2015).A sound and profitable banking system is better able to improve financial system stability and economic growth as it makes the economy more endurable to negative and external shocks (Athanasoglou et al., 2006).
Altunbas et al. (2007) found a negative relationship between inefficiency and bank risk-taking behavior. Soteriou and Zenios (1997) found that there is negative relationship between profitability and efficiency.Non-performing loan (NPL) could ruin bank's profitability both through a loss of interest income and write off the principle loan amount. Kithinji (2010) and Gul et al. (2011)found positive relationship of total loan to total deposit (TLTD) with return on assets (ROA). Funso (2012) revealed that there exist a positive association between total loan to total deposit (TLTD) and return on assets (ROA). However, Gizaw (2015) found negative relationship between loan to total deposit and return on equity (ROE).
The major objective of the study is to assess the relationship between bank risk, solvency and financial performance of the Nepalese commercial banks. The study is based on secondary data of 20 commercial banks with 20 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 risk management and financial performance of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, NBL has the highest average ROE and LBL has the highest average NIM among the selected commercial banks throughout the study period.Similarly the average NPLR is highest for NBBL (5.96 times) among the selected commercial banks. The average of NPLR has decreased over the study period. Likewise, the average OER is highest for MBL (163.31 times) and it is decreased over the study period of selective commercial banks. The average LDR is highest for LBL (88.40 times) and it has decreased over the study period. Debt to total assets and debt to total equity is highest for NSBI and average of both DTA and DTE has increased over the study period.
The descriptive analysis shows that mean of selected commercial banks are ROA, ROE and NIM, non-performing loan ratio and operating efficiency ratio, loan to deposit ratio, debt to total equity and debt to total assets, firm size and GDP are 1.61 percent, 16.39 percent, 3.26 percent, 1.88 times and 72.37 times, 77.95times, 9.41 times, 0.88 times, 24.12 and 4.31 percent respectively.
The regression results revealed that beta coefficient of operating efficiency ratio is negative and significant with return on assets, Return on equity and net interest margin.The results also revealed that beta coefficient of debt to total equity and firm size are positive and significant with return on assets, Return on equity and net interest margin, where beta coefficients are significant at 1 percent level of significance.
Bank risk, solvency and profitability in the Nepalese commercial Banks [printed text] / Pokharel Ghanashyam, Author . - 2017 . - 102p.
Languages : English
Descriptors: Bank risk Class number: 332.632 Abstract: Commercial banks play an important role for economic development and foster economic growth by providing number of financial services. One of the important functions of the commercial banks is the financial intermediation functions and thus it transfers the fund from surplus units to the deficit units. The survival and success of a financial organization depends critically on the efficiency of managing these risks (Khan & Ahmed, 2001).Solvency and bank risk management is a process that enables shareholders of the bank to maximize their profit without exceeding an acceptable risk. (JasienÄ—,2012). Risk management is the identification, assessment and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events (Njogo, 2012).Risk management has always been a focal point for finance managers in banking industry (Dima&Orzea, 2014).Solvency refers to the capacity of the business to meet its short-term and long-term obligations. Short-term obligations include creditors, bank loans and bills payable and long-term obligations consists of debentures, long-term loans and long term credits(Ramana et al., 2015).A sound and profitable banking system is better able to improve financial system stability and economic growth as it makes the economy more endurable to negative and external shocks (Athanasoglou et al., 2006).
Altunbas et al. (2007) found a negative relationship between inefficiency and bank risk-taking behavior. Soteriou and Zenios (1997) found that there is negative relationship between profitability and efficiency.Non-performing loan (NPL) could ruin bank's profitability both through a loss of interest income and write off the principle loan amount. Kithinji (2010) and Gul et al. (2011)found positive relationship of total loan to total deposit (TLTD) with return on assets (ROA). Funso (2012) revealed that there exist a positive association between total loan to total deposit (TLTD) and return on assets (ROA). However, Gizaw (2015) found negative relationship between loan to total deposit and return on equity (ROE).
The major objective of the study is to assess the relationship between bank risk, solvency and financial performance of the Nepalese commercial banks. The study is based on secondary data of 20 commercial banks with 20 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 risk management and financial performance of Nepalese commercial banks.
The result shows that NBBL has highest average ROA, NBL has the highest average ROE and LBL has the highest average NIM among the selected commercial banks throughout the study period.Similarly the average NPLR is highest for NBBL (5.96 times) among the selected commercial banks. The average of NPLR has decreased over the study period. Likewise, the average OER is highest for MBL (163.31 times) and it is decreased over the study period of selective commercial banks. The average LDR is highest for LBL (88.40 times) and it has decreased over the study period. Debt to total assets and debt to total equity is highest for NSBI and average of both DTA and DTE has increased over the study period.
The descriptive analysis shows that mean of selected commercial banks are ROA, ROE and NIM, non-performing loan ratio and operating efficiency ratio, loan to deposit ratio, debt to total equity and debt to total assets, firm size and GDP are 1.61 percent, 16.39 percent, 3.26 percent, 1.88 times and 72.37 times, 77.95times, 9.41 times, 0.88 times, 24.12 and 4.31 percent respectively.
The regression results revealed that beta coefficient of operating efficiency ratio is negative and significant with return on assets, Return on equity and net interest margin.The results also revealed that beta coefficient of debt to total equity and firm size are positive and significant with return on assets, Return on equity and net interest margin, where beta coefficients are significant at 1 percent level of significance.
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Barcode Call number Media type Location Section Status 280/D DHA Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Bank specific and macroeconomic determinants of loan loss provisions: a case of Nepalese commercial banks Material Type: printed text Authors: Sudeep Nepal, Author Publication Date: 2017 Pagination: 101p Size: GRP/Thesis Accompanying material: 6/B Languages : English Descriptors: Macroeconomics Class number: 332.632 Abstract: In today’s fast-moving business environment, banks are exposed to a large number of risks: credit risk, liquidity risk, market risk, operational risk, interest rate exchange risk, etc. Due to such exposure to various risks, efficient risk management is required. Managing risk is one of the basic tasks to be done, once it has been identified and known. Shafiq & Nasr (2010) argued that managing a risk in advance is far better than waiting for its occurrence. The focus of good risk management is the identification and treatment of risks. Its objective is to add maximum sustainable value to all the activities of the organization.
The loan loss provision increase with the riskiness that bank makes on the loan. A bank making a small number of risky loans will have a low loan loss provision compared to a bank taking higher risks. The high quality loan requires low loan loss provision, whereas bad loan requires high loan loss provision. A loan loss provision is considered as an adjustment of the bank value of a loan which regards future changes in the loan’s value due to default events (Hlawatch & Ostrowski, 2010).
Managerial discretion in the use of loan loss provision (LLP) has attracted considerable attention from both regulators and academics for a long time. Earlier studies focused on the use of LLP for capital management (Ahmed et al., 1999). More recently, the study focuses on the timeliness of LLP over the business cycle and the associated effects on banks' lending behavior and financial stability (Laeven & Majnoni, 2003; Bikker & Metzemakers, 2005 and Beatty & Liao, 2011). If banks account for the fact that the latent credit risk in their loan portfolios rises during upswings when competition between banks increases and monitoring efforts decrease, they should increase their provisioning level during upswings and lower it during downturns as losses occur, thus build and release provisions in a countercyclical fashion.
The major purpose of this study is to analyze the impact of bank specific and macroeconomic factors on loan loss provisions in Nepalese commercial banks. The specific objectives of this study are: a) To analyze the structure and pattern of dependent (LLP1 and LLP2) and independent variables (capital adequacy ratio, loan growth, bank size and non-performing loan), b) To examine the relationship between macroeconomic variable like GDP growth rate, inflation rate and interest rate with loan loss provision, c)To identify the effect of capital adequacy ratio, loan growth and bank size on loan loss provision, d) To examine the relationship between non-performing loan and loan loss provision of the bank.
The study is based on the secondary data which were gathered for a sample of 18 commercial banks of Nepal within the time period from 2008 to 2015, leading to the total of 144 observations. This study employs descriptive and causal comparative research design to deal with bank specific and macroeconomic determinants of loan loss provision of Nepalese commercial banks. More specifically, the study examines the effect of capital adequacy ratio, loan growth, bank size, non-performing loan, GDP growth rate, inflation rate and interest rate on loan loss provision. The main sources of data are various issues of banking and financial statistics, World Bank, bank supervision reports of NRB and various annual reports of selected commercial banks.
The average loan loss provision to total loan is highest for NBB (9.88 percent) and lowest for SCBL (1.34 percent).CZBL has the highest average loan loss provision to non-performing loan of 7.29 times and HBL has lowest of 1.25 times.The average capital adequacy ratio is highest for SCBL (15.18 percent) and lowest for SBL (10.76 percent).The analysis of loan growth indicates that average loan growth is highest for GBIME (38.33 percent) and lowest for SCBL (11.73 percent).The average bank size is highest for NABIL (83695.83 million) and lowest for NCC (22907.86 million).NBB has the highest average non-performing loan of 6.39 percent and EBL has lowest of 0.51 percent.
The descriptive statistics for the variables are used in this study. Clearly, The average loan loss provisions to total loan and loan loss provision to non-performing loan for 18 sample banks is 2.62 percent and 2.85 times respectively. Similarly, average capital adequacy ratio is 12.31 percent; loan growth is 23.71 percent. Similarly, the mean proportion of bank size is 45266.58 million, non-performing loan is 1.73 percent, GDP growth rate is 3.86 percent and inflation rate is 9.53 percent. Furthermore, the average interest rate is of 3.25 percent.
From the analysis, non-performing loan, inflation rate and interest rate are positively correlated with loan loss provision to total loan. This study reveals that capital adequacy ratio, loan growth, bank size and GDP growth rate are negatively correlated with loan loss provision to total loan. It indicates that higher the capital adequacy ratio, loan growth,Bank specific and macroeconomic determinants of loan loss provisions: a case of Nepalese commercial banks [printed text] / Sudeep Nepal, Author . - 2017 . - 101p ; GRP/Thesis + 6/B.
Languages : English
Descriptors: Macroeconomics Class number: 332.632 Abstract: In today’s fast-moving business environment, banks are exposed to a large number of risks: credit risk, liquidity risk, market risk, operational risk, interest rate exchange risk, etc. Due to such exposure to various risks, efficient risk management is required. Managing risk is one of the basic tasks to be done, once it has been identified and known. Shafiq & Nasr (2010) argued that managing a risk in advance is far better than waiting for its occurrence. The focus of good risk management is the identification and treatment of risks. Its objective is to add maximum sustainable value to all the activities of the organization.
The loan loss provision increase with the riskiness that bank makes on the loan. A bank making a small number of risky loans will have a low loan loss provision compared to a bank taking higher risks. The high quality loan requires low loan loss provision, whereas bad loan requires high loan loss provision. A loan loss provision is considered as an adjustment of the bank value of a loan which regards future changes in the loan’s value due to default events (Hlawatch & Ostrowski, 2010).
Managerial discretion in the use of loan loss provision (LLP) has attracted considerable attention from both regulators and academics for a long time. Earlier studies focused on the use of LLP for capital management (Ahmed et al., 1999). More recently, the study focuses on the timeliness of LLP over the business cycle and the associated effects on banks' lending behavior and financial stability (Laeven & Majnoni, 2003; Bikker & Metzemakers, 2005 and Beatty & Liao, 2011). If banks account for the fact that the latent credit risk in their loan portfolios rises during upswings when competition between banks increases and monitoring efforts decrease, they should increase their provisioning level during upswings and lower it during downturns as losses occur, thus build and release provisions in a countercyclical fashion.
The major purpose of this study is to analyze the impact of bank specific and macroeconomic factors on loan loss provisions in Nepalese commercial banks. The specific objectives of this study are: a) To analyze the structure and pattern of dependent (LLP1 and LLP2) and independent variables (capital adequacy ratio, loan growth, bank size and non-performing loan), b) To examine the relationship between macroeconomic variable like GDP growth rate, inflation rate and interest rate with loan loss provision, c)To identify the effect of capital adequacy ratio, loan growth and bank size on loan loss provision, d) To examine the relationship between non-performing loan and loan loss provision of the bank.
The study is based on the secondary data which were gathered for a sample of 18 commercial banks of Nepal within the time period from 2008 to 2015, leading to the total of 144 observations. This study employs descriptive and causal comparative research design to deal with bank specific and macroeconomic determinants of loan loss provision of Nepalese commercial banks. More specifically, the study examines the effect of capital adequacy ratio, loan growth, bank size, non-performing loan, GDP growth rate, inflation rate and interest rate on loan loss provision. The main sources of data are various issues of banking and financial statistics, World Bank, bank supervision reports of NRB and various annual reports of selected commercial banks.
The average loan loss provision to total loan is highest for NBB (9.88 percent) and lowest for SCBL (1.34 percent).CZBL has the highest average loan loss provision to non-performing loan of 7.29 times and HBL has lowest of 1.25 times.The average capital adequacy ratio is highest for SCBL (15.18 percent) and lowest for SBL (10.76 percent).The analysis of loan growth indicates that average loan growth is highest for GBIME (38.33 percent) and lowest for SCBL (11.73 percent).The average bank size is highest for NABIL (83695.83 million) and lowest for NCC (22907.86 million).NBB has the highest average non-performing loan of 6.39 percent and EBL has lowest of 0.51 percent.
The descriptive statistics for the variables are used in this study. Clearly, The average loan loss provisions to total loan and loan loss provision to non-performing loan for 18 sample banks is 2.62 percent and 2.85 times respectively. Similarly, average capital adequacy ratio is 12.31 percent; loan growth is 23.71 percent. Similarly, the mean proportion of bank size is 45266.58 million, non-performing loan is 1.73 percent, GDP growth rate is 3.86 percent and inflation rate is 9.53 percent. Furthermore, the average interest rate is of 3.25 percent.
From the analysis, non-performing loan, inflation rate and interest rate are positively correlated with loan loss provision to total loan. This study reveals that capital adequacy ratio, loan growth, bank size and GDP growth rate are negatively correlated with loan loss provision to total loan. It indicates that higher the capital adequacy ratio, loan growth,Hold
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Barcode Call number Media type Location Section Status + 332.632 NEP Maps and Plans BBA_BI Junction Philosophy & Psychology Not for loan 343/D NEP Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Bank specific and macroeconomic determinants of non-performing loan: a case of commercial banks in Nepal Material Type: printed text Authors: Shishir Giri, Author Publication Date: 2016 Pagination: 82p. Size: GRP/Thesis Accompanying material: 4/B General note: Including bibliography
Languages : English Descriptors: Economic policy
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Bank specific and macroeconomic determinants of non-performing loan: a case of commercial banks in Nepal [printed text] / Shishir Giri, Author . - 2016 . - 82p. ; GRP/Thesis + 4/B.
Including bibliography
Languages : English
Descriptors: Economic policy
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Hold
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Barcode Call number Media type Location Section Status 138/D 332.632 GIR Thesis/Dissertation Uniglobe Library Social Sciences Available
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