| Title : | Factors affecting the probability of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Sandesh Dangol, Author | | Publication Date: | 2013 | | Pagination: | 83p. | | Size: | GRP/Thesis | | Accompanying material: | 1/B | | General note: | Including bibliography
| | Languages : | English | | Descriptors: | Banks
Banks and banking
Commercial banks
Probability
| | Keywords: | 'probability banks bank and banking commercial banks sandesh dangol' | | Class number: | 371.291 | | Abstract: | Although there are several evidences for determining the profitability, the issues relating to profitability are still unsolved. Identification of the factors that determines the profitability is important for all the stakeholders and is even more crucial in developing country like Nepal for the economic development. The major objective of this study is to analyze the factors that determine the profitability of commercial banks of Nepal along with the empirical relationship between them. For the purpose of study, 12 listed commercial banks are taken as sample and required data such as Overhead costs, Equity capital, Bank loan, Bank size, Non interest earning assets, Inflation and Gross domestic product are collected from various secondary sources for period of 10 years i.e. 2002 to 2011. Three measurements of profitability are used for the studies which are Return on assets, Return on equity and Net interest margin. Primary questionnaire survey is also conducted in order to assess the opinions of bank’s manager on Nepalese commercial banks’ determinants. Descriptive statistics, univariate (correlation and portfolio) analysis and regression analysis are used to show the relationship between the bank’s profitability and its determinants.
The result of secondary data analysis shows that Overhead, Bank loan, Bank size, Equity capital, Non interest earning assets, Trend and Gross domestic product have significant relationship with the profitability of commercial banks of Nepal whereas Inflation only has no significant relationship with the commercial banks of Nepal. Among them only, bank loan has been the most powerful variable for determining the profitability of banks. In contradiction to the findings of the secondary data, the primary survey also reveals that bank loan is the most powerful factor for determining the profitability followed by equity capital and bank size.
The major limitation of the study is that it has included 12 banks as a sample from 32 sized population and only seven variables are taken into consideration for study. Although there are limitations, the findings have significant result which can help to those who want to make further study including these variables in determining profitability of commercial banks in Nepal.
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Factors affecting the probability of Nepalese commercial banks [printed text] / Sandesh Dangol, Author . - 2013 . - 83p. ; GRP/Thesis + 1/B. Including bibliography
Languages : English | Descriptors: | Banks
Banks and banking
Commercial banks
Probability
| | Keywords: | 'probability banks bank and banking commercial banks sandesh dangol' | | Class number: | 371.291 | | Abstract: | Although there are several evidences for determining the profitability, the issues relating to profitability are still unsolved. Identification of the factors that determines the profitability is important for all the stakeholders and is even more crucial in developing country like Nepal for the economic development. The major objective of this study is to analyze the factors that determine the profitability of commercial banks of Nepal along with the empirical relationship between them. For the purpose of study, 12 listed commercial banks are taken as sample and required data such as Overhead costs, Equity capital, Bank loan, Bank size, Non interest earning assets, Inflation and Gross domestic product are collected from various secondary sources for period of 10 years i.e. 2002 to 2011. Three measurements of profitability are used for the studies which are Return on assets, Return on equity and Net interest margin. Primary questionnaire survey is also conducted in order to assess the opinions of bank’s manager on Nepalese commercial banks’ determinants. Descriptive statistics, univariate (correlation and portfolio) analysis and regression analysis are used to show the relationship between the bank’s profitability and its determinants.
The result of secondary data analysis shows that Overhead, Bank loan, Bank size, Equity capital, Non interest earning assets, Trend and Gross domestic product have significant relationship with the profitability of commercial banks of Nepal whereas Inflation only has no significant relationship with the commercial banks of Nepal. Among them only, bank loan has been the most powerful variable for determining the profitability of banks. In contradiction to the findings of the secondary data, the primary survey also reveals that bank loan is the most powerful factor for determining the profitability followed by equity capital and bank size.
The major limitation of the study is that it has included 12 banks as a sample from 32 sized population and only seven variables are taken into consideration for study. Although there are limitations, the findings have significant result which can help to those who want to make further study including these variables in determining profitability of commercial banks in Nepal.
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