Welcome to the Uniglobe Library
From this page you can:
Home |
Author details
Author Bishnu Maharjan |
Available item(s) by this author
Refine your search Apply to external sources
CAMEL'S analysis in banking industry : a case of Nepalese commercials banks / Bishnu Maharjan
Title : CAMEL'S analysis in banking industry : a case of Nepalese commercials banks Material Type: printed text Authors: Bishnu Maharjan, Author Publication Date: Jun.2018 Pagination: 90p. Size: GRP/Thesis Accompanying material: 11/B Languages : English Descriptors: Camels Class number: 599.736 Abstract: A sound financial system is indispensable for a healthy and vibrant economy. The banking sector constitutes a predominant component of the financial services industry. The performance of any economy to a large extent is dependent on the performance of the banking sector. The banking sector’s performance is seen as the replica of economic activities of the nation as a healthy banking system acts as the bedrock of social, economic and industrial growth of a nation. Banking institutions in our country have been assigned a significant role in financing the process of planned economic growth.Capital adequacy ratio is one of the most significant current issues in banking which evaluate the amount of a bank’s efficiency and stability. Capital adequacy generally affects all entities. But as a term, it is most often used in discussing the position of firms in the financial section of the economy, and precisely, whether firms have sufficient capital to cover the risks that they confront (Abba, 2013).
This study attempts to analyze financial performance of Nepalese commercial banks by CAMEL'S model. This study is based on the secondary data of 16 commercial banks of Nepal for the time period of 2008/09 to 2015/16, leading to a total of 128 observations. Data and information have been collected from the Banking and Financial Statistics, Bank Supervision Report published by Nepal Rastra Bank and annual reports of the selected commercial banks. This study has employed descriptive research design and casual comparative research design as it deals with the relationship between credit risk and capital adequacy with the profitability of Nepalese commercial banks.
The result reveals that average market per share is highest for SCBL (2881.25 per share) and lowest for SUBL (333.51 per share). The average earnings per share is highest for EBL (Rs. 86.73 per share) and lowest for SUBL (Rs.8.15 per share). The average capital adequacy ratio is highest for ADBL (16.97 percent) and lowest for NBBL (10.66 times). The average assets quality is highest SUBL (17.00 percent) and lowest for SCBL (10.74 percent). The average management efficiency is highest for SCBL(26.57 million) and lowest form MBL (4.88 million). The average earnings is highest for SUBL (36.07 percent) and lowest for MBL (0.71 percent). The average liquid ratio is highest for PCBL (98.42 percent) and lowest for SUBL (78.83 percent). ADBL has the highest average sensitivity (Rs.78.96 billion) and SBL has the lowest (Rs. 23.36 billion). The descriptive statistics for selected commercial bank shows that the average market per share isRs. 8.95 percent, average earning per share is Rs. 36.08 per share, average capital adequacy ratio is 12.29 percent, average assets quality is 2.11 percent, management efficiency is Rs.15.74 million,average liquidity ratio is 9.52 percent, average sensitivity is Rs.39.50billion.The study shows that the capital adequacy ratio is negatively related to market per share (MPS) and earnings per share (EPS). It indicates that increase in capital adequacy ratio leads to decrease in MPS and EPS. The study also shows that assets quality and management efficiency are positively related to MPS and EPS. It indicates that higher the assets quality and management efficiency, higher would be the MPSand EPS of Nepalese commercial banks. However, the result shows that earnings and liquidity ratio have a positive relationship with MPS and EPS. This indicates that increase earnings and liquidity ratio leads to increase in MPS and EPS. Likewise, the study reveals that sensitivity is positively related to the MPS and EPS. This indicates that increase in sensitivity leads to increase in MPS and EPS. The regression results also show that beta coefficients are negative for capital adequacy ratio for MPS and EPS whereas beta coefficients are positive for assets quality, management efficiency, earnings, liquidity ratio and sensitivity. However, the coefficients are significant liquidity ratio only for at 5 percent level.
CAMEL'S analysis in banking industry : a case of Nepalese commercials banks [printed text] / Bishnu Maharjan, Author . - Jun.2018 . - 90p. ; GRP/Thesis + 11/B.
Languages : English
Descriptors: Camels Class number: 599.736 Abstract: A sound financial system is indispensable for a healthy and vibrant economy. The banking sector constitutes a predominant component of the financial services industry. The performance of any economy to a large extent is dependent on the performance of the banking sector. The banking sector’s performance is seen as the replica of economic activities of the nation as a healthy banking system acts as the bedrock of social, economic and industrial growth of a nation. Banking institutions in our country have been assigned a significant role in financing the process of planned economic growth.Capital adequacy ratio is one of the most significant current issues in banking which evaluate the amount of a bank’s efficiency and stability. Capital adequacy generally affects all entities. But as a term, it is most often used in discussing the position of firms in the financial section of the economy, and precisely, whether firms have sufficient capital to cover the risks that they confront (Abba, 2013).
This study attempts to analyze financial performance of Nepalese commercial banks by CAMEL'S model. This study is based on the secondary data of 16 commercial banks of Nepal for the time period of 2008/09 to 2015/16, leading to a total of 128 observations. Data and information have been collected from the Banking and Financial Statistics, Bank Supervision Report published by Nepal Rastra Bank and annual reports of the selected commercial banks. This study has employed descriptive research design and casual comparative research design as it deals with the relationship between credit risk and capital adequacy with the profitability of Nepalese commercial banks.
The result reveals that average market per share is highest for SCBL (2881.25 per share) and lowest for SUBL (333.51 per share). The average earnings per share is highest for EBL (Rs. 86.73 per share) and lowest for SUBL (Rs.8.15 per share). The average capital adequacy ratio is highest for ADBL (16.97 percent) and lowest for NBBL (10.66 times). The average assets quality is highest SUBL (17.00 percent) and lowest for SCBL (10.74 percent). The average management efficiency is highest for SCBL(26.57 million) and lowest form MBL (4.88 million). The average earnings is highest for SUBL (36.07 percent) and lowest for MBL (0.71 percent). The average liquid ratio is highest for PCBL (98.42 percent) and lowest for SUBL (78.83 percent). ADBL has the highest average sensitivity (Rs.78.96 billion) and SBL has the lowest (Rs. 23.36 billion). The descriptive statistics for selected commercial bank shows that the average market per share isRs. 8.95 percent, average earning per share is Rs. 36.08 per share, average capital adequacy ratio is 12.29 percent, average assets quality is 2.11 percent, management efficiency is Rs.15.74 million,average liquidity ratio is 9.52 percent, average sensitivity is Rs.39.50billion.The study shows that the capital adequacy ratio is negatively related to market per share (MPS) and earnings per share (EPS). It indicates that increase in capital adequacy ratio leads to decrease in MPS and EPS. The study also shows that assets quality and management efficiency are positively related to MPS and EPS. It indicates that higher the assets quality and management efficiency, higher would be the MPSand EPS of Nepalese commercial banks. However, the result shows that earnings and liquidity ratio have a positive relationship with MPS and EPS. This indicates that increase earnings and liquidity ratio leads to increase in MPS and EPS. Likewise, the study reveals that sensitivity is positively related to the MPS and EPS. This indicates that increase in sensitivity leads to increase in MPS and EPS. The regression results also show that beta coefficients are negative for capital adequacy ratio for MPS and EPS whereas beta coefficients are positive for assets quality, management efficiency, earnings, liquidity ratio and sensitivity. However, the coefficients are significant liquidity ratio only for at 5 percent level.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 468/D 599.736 MAH Books Uniglobe Library Natural Science Available