Welcome to the Uniglobe Library
From this page you can:
Home |
Author details
Author Bipasna Vaidya |
Available item(s) by this author
Refine your search Apply to external sources
Determinants of financial performance of Nepalese commercial banks / Bipasna Vaidya
Title : Determinants of financial performance of Nepalese commercial banks Material Type: printed text Authors: Bipasna Vaidya, Author Publication Date: 2014 Pagination: 94p. Size: GRP/Thesis Accompanying material: 2/B General note: Including bibilography Languages : English Abstract: Despite of several empirical evidences, bank’s financial performance evaluation issues are still unsolved in the context of Nepal. Identification of banks’ financial performance and factors shaping the performance of bank is crucial for the Nepalese commercial banks. The major objective of this study is to analyze the financial performance evaluation of Nepalese commercial banks.
Based on the literature reviews, this study has proposed the conceptual framework identifying return on assets, return on equity and net interest marginare the variables as the most important factors that determine the financial performance evaluation of commercial banks in the context of Nepal.This study determines the factors affecting the financial performance of selected commercial banks of Nepal. The specific objectives of this study were to analyze the relationship between return on assets and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation, return on equity and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation and net interest margin and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation.
This study is based on primary as well as secondary data. For the purpose of study 14 commercial banks which are established before 2001/02 are divided into three strata (joint venture, non-joint venture and government) is taken as sample. Required data of dependent variables (return on assets, return on equity and net interest margin) and independent variables (capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation rate) are collected from various secondary sources for the period of 2001/02 to 20010/11. Primary survey questionnaire is conducted in order to assess the opinion of financial performance evaluation of Nepalese commercial banks. Likewise, multiple regression analysis and correlation analysis are used to examine the relationship between bank’s financial performance evaluation and its determinants.
The study reveals that there are some of the variables that are found to have significant relationship with the financial performance of banks in various contexts. Similarly, return on assets, net interest margin, leverage, capital adequacy, liquidity management and GDP are some of the variables that are found to have significant relationship with the financial performance of banks. Capital adequacy and inflation has significant relationship with return on equity for performance evaluation of Nepalese commercial banks.
Based on the primary survey result, most of the respondents believe that long term existence is most important factor that helps to increase the performance management. Banks are recommended to increase their performance as much as possible for the long term existence in the Nepalese market.Likewise, the primary survey results indicate that the factors that mostly affect the profitability of commercial banks is overhead costs. Thus, overhead costs should be controlled to maintain the profitability of the banks of commercial banks.
The recommendation put forward by this study is that banks are suggested to increase the capital adequacy and long term existence as possible for the better performance. The major limitation of this study lies in the fact that this study has excluded some bank specific and macro-economic variables that might influence on performance of banks.The study remains enough ground for future researcher in the same topic. The future studies can be carried out by selecting other financial institutions like development banks, public banks and finance companies to grab the wider view of banks financialperformance. Likewise, this study has conducted in Kathmandu valley so future studies are suggested to extend the survey outside the valley including all the department of employees.
Determinants of financial performance of Nepalese commercial banks [printed text] / Bipasna Vaidya, Author . - 2014 . - 94p. ; GRP/Thesis + 2/B.
Including bibilography
Languages : English
Abstract: Despite of several empirical evidences, bank’s financial performance evaluation issues are still unsolved in the context of Nepal. Identification of banks’ financial performance and factors shaping the performance of bank is crucial for the Nepalese commercial banks. The major objective of this study is to analyze the financial performance evaluation of Nepalese commercial banks.
Based on the literature reviews, this study has proposed the conceptual framework identifying return on assets, return on equity and net interest marginare the variables as the most important factors that determine the financial performance evaluation of commercial banks in the context of Nepal.This study determines the factors affecting the financial performance of selected commercial banks of Nepal. The specific objectives of this study were to analyze the relationship between return on assets and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation, return on equity and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation and net interest margin and capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation.
This study is based on primary as well as secondary data. For the purpose of study 14 commercial banks which are established before 2001/02 are divided into three strata (joint venture, non-joint venture and government) is taken as sample. Required data of dependent variables (return on assets, return on equity and net interest margin) and independent variables (capital adequacy, assets quality, management efficiency, liquidity management, gross domestic product and inflation rate) are collected from various secondary sources for the period of 2001/02 to 20010/11. Primary survey questionnaire is conducted in order to assess the opinion of financial performance evaluation of Nepalese commercial banks. Likewise, multiple regression analysis and correlation analysis are used to examine the relationship between bank’s financial performance evaluation and its determinants.
The study reveals that there are some of the variables that are found to have significant relationship with the financial performance of banks in various contexts. Similarly, return on assets, net interest margin, leverage, capital adequacy, liquidity management and GDP are some of the variables that are found to have significant relationship with the financial performance of banks. Capital adequacy and inflation has significant relationship with return on equity for performance evaluation of Nepalese commercial banks.
Based on the primary survey result, most of the respondents believe that long term existence is most important factor that helps to increase the performance management. Banks are recommended to increase their performance as much as possible for the long term existence in the Nepalese market.Likewise, the primary survey results indicate that the factors that mostly affect the profitability of commercial banks is overhead costs. Thus, overhead costs should be controlled to maintain the profitability of the banks of commercial banks.
The recommendation put forward by this study is that banks are suggested to increase the capital adequacy and long term existence as possible for the better performance. The major limitation of this study lies in the fact that this study has excluded some bank specific and macro-economic variables that might influence on performance of banks.The study remains enough ground for future researcher in the same topic. The future studies can be carried out by selecting other financial institutions like development banks, public banks and finance companies to grab the wider view of banks financialperformance. Likewise, this study has conducted in Kathmandu valley so future studies are suggested to extend the survey outside the valley including all the department of employees.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 67/D VAI Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available