Welcome to the Uniglobe Library
From this page you can:
Home |
. Uniglobe Library
217 result(s)
Refine your search
Refine your search
Customer satisfaction towards online shopping in Kathmandu valley / Salina Rana
Title : Customer satisfaction towards online shopping in Kathmandu valley Material Type: printed text Authors: Salina Rana, Author Pagination: 89p. Size: GRP/Thesis Accompanying material: 10/B Languages : English Abstract: Online shopping is the process whereby consumers directly buy goods, services etc. from a seller interactively in real-time without an intermediary service over the internet. Online shopping is the process of buying goods and services from merchants who sell on the Internet. Since the emergence of the World Wide Web, merchants have sought to sell their products to people who surf the Internet. Nowadays, online shopping is a fast growing phenomenon (Vadivu, 2015). Online shopping offers the customer a wide range of products and services wherein he is able to compare the price quoted by different suppliers and choose the best deal from it. Internet marketing is conceptually different from other marketing channels and internet promotes a one to one communication between the seller and the end user with round the clock customer service (Lee & Lin 2005).
Today, business internet marketing is the fastest growing segment of online commerce. According to Grace & Chia (2009), the major difference between traditional and online selling is the extent of interaction between the consumer and the seller. Growing numbers of consumers shop online to purchase goods and services, gather product information or even browse for enjoyment. Online shopping environment are therefore playing an increasing role in the overall relationship between markets and their consumers (Ladson & Fraunholz, 2005). Consumer-purchases are mainly based on the cyberspace appearance such as pictures, image, quality information, and video clips of the product, not on the actual experience.Hossein et al. (2012) investigated the factors affecting online shopping behavior of consumers. The study identified that financial risks and non-delivery risk negatively affect attitude toward online shopping. The results also indicated that domain specific innovativeness and subjective norms positively affect online shopping behavior. Similarly, Al Karim (2013) assessed the customer satisfaction in online shopping in the context of Bangladesh. The study revealed that consumer use internet to purchase products through online because they believe it is convenience to them and the term convenient includes elements such as time saving, information availability, opening time, ease of use, websites navigation, less shopping stress, less expensive and shopping fun.According to Sudhakar (2016), consumers are looking for trust, security and privacy of data, timeliness, accessibility, convenience, customer service, costs and wider choice throughout online shopping. Ramanjaneyulu and Subbarayudu (2017) examined the customer satisfaction towards online stores in the context of Kadapa District. The study showed that the online shopping has become a daily activity in the present scenario due to convenience and demonstration in India. Similarly, the web allows customers a comparison buy the most effective deals and find products. Bama (2016) investigated the customer satisfaction on online shopping in the context of Pollachi Taluk. The study revealed that customer perception towards online shopping is dependent upon online websites.
The major purpose of this study is to examine the customer satisfaction towards online shoppingattitudein Kathmandu valley.Specifically, it examines the impact of convenience, time savings, website design, perceived security and information quality on customer satisfaction and customer attitudein Kathmandu valley.
The primary source of data is used to assess the opinion of customers with respect to online shopping in Kathmandu valley. The survey is based on 200 respondents in the context of Kathmandu valley.The questions were asked in the Likert scale questions. The Likert scale questions of different variables customer satisfaction, customer attitude, convenience, time savings, website design, perceived security and information quality were measured in 5 point scale. For the fact finding of the study primary data was analyzed by using percentage frequency distribution and methods such as descriptive statistics, correlation analysis and regression analysis.
The result shows that web design is positively related to customer satisfaction which indicates that better the web design, higher would be the customer satisfaction. Likewise, security is positively related to customer satisfaction. It shows that more the transactions are secure, higher would be the customer satisfaction towards online shopping. Similarly, information quality is positively related to customer satisfaction. It means that better information quality leads to increase in customer satisfaction. The result also shows that time saving is positively correlated to customer satisfaction, which indicates that increase in time saving leads to increase in customer satisfaction. Likewise, convenience is positively related to customer satisfaction which indicates that higher the convenience, higher would be the customer satisfaction.
The study shows that web design, information quality, time saving, convenience and secure transactions have positive influence on customer satisfaction and customer attitude. The study concludes that customer have positive feelings towards online shopping. People are tradition bound and have doubt in mindset as far as issue of online shopping/purchase of product is concerned. However, the study concludes that customers in Kathmandu valley are finding online shopping very comfortable because of many variables like secure transaction, customization or personalization of the websites, reliable, home delivery etc. The study also concludes that convenience followed by time savings, security and web design are the most dominant factors that influence the customer satisfaction towards online shopping in the context of Kathmandu valley.
Customer satisfaction towards online shopping in Kathmandu valley [printed text] / Salina Rana, Author . - [s.d.] . - 89p. ; GRP/Thesis + 10/B.
Languages : English
Abstract: Online shopping is the process whereby consumers directly buy goods, services etc. from a seller interactively in real-time without an intermediary service over the internet. Online shopping is the process of buying goods and services from merchants who sell on the Internet. Since the emergence of the World Wide Web, merchants have sought to sell their products to people who surf the Internet. Nowadays, online shopping is a fast growing phenomenon (Vadivu, 2015). Online shopping offers the customer a wide range of products and services wherein he is able to compare the price quoted by different suppliers and choose the best deal from it. Internet marketing is conceptually different from other marketing channels and internet promotes a one to one communication between the seller and the end user with round the clock customer service (Lee & Lin 2005).
Today, business internet marketing is the fastest growing segment of online commerce. According to Grace & Chia (2009), the major difference between traditional and online selling is the extent of interaction between the consumer and the seller. Growing numbers of consumers shop online to purchase goods and services, gather product information or even browse for enjoyment. Online shopping environment are therefore playing an increasing role in the overall relationship between markets and their consumers (Ladson & Fraunholz, 2005). Consumer-purchases are mainly based on the cyberspace appearance such as pictures, image, quality information, and video clips of the product, not on the actual experience.Hossein et al. (2012) investigated the factors affecting online shopping behavior of consumers. The study identified that financial risks and non-delivery risk negatively affect attitude toward online shopping. The results also indicated that domain specific innovativeness and subjective norms positively affect online shopping behavior. Similarly, Al Karim (2013) assessed the customer satisfaction in online shopping in the context of Bangladesh. The study revealed that consumer use internet to purchase products through online because they believe it is convenience to them and the term convenient includes elements such as time saving, information availability, opening time, ease of use, websites navigation, less shopping stress, less expensive and shopping fun.According to Sudhakar (2016), consumers are looking for trust, security and privacy of data, timeliness, accessibility, convenience, customer service, costs and wider choice throughout online shopping. Ramanjaneyulu and Subbarayudu (2017) examined the customer satisfaction towards online stores in the context of Kadapa District. The study showed that the online shopping has become a daily activity in the present scenario due to convenience and demonstration in India. Similarly, the web allows customers a comparison buy the most effective deals and find products. Bama (2016) investigated the customer satisfaction on online shopping in the context of Pollachi Taluk. The study revealed that customer perception towards online shopping is dependent upon online websites.
The major purpose of this study is to examine the customer satisfaction towards online shoppingattitudein Kathmandu valley.Specifically, it examines the impact of convenience, time savings, website design, perceived security and information quality on customer satisfaction and customer attitudein Kathmandu valley.
The primary source of data is used to assess the opinion of customers with respect to online shopping in Kathmandu valley. The survey is based on 200 respondents in the context of Kathmandu valley.The questions were asked in the Likert scale questions. The Likert scale questions of different variables customer satisfaction, customer attitude, convenience, time savings, website design, perceived security and information quality were measured in 5 point scale. For the fact finding of the study primary data was analyzed by using percentage frequency distribution and methods such as descriptive statistics, correlation analysis and regression analysis.
The result shows that web design is positively related to customer satisfaction which indicates that better the web design, higher would be the customer satisfaction. Likewise, security is positively related to customer satisfaction. It shows that more the transactions are secure, higher would be the customer satisfaction towards online shopping. Similarly, information quality is positively related to customer satisfaction. It means that better information quality leads to increase in customer satisfaction. The result also shows that time saving is positively correlated to customer satisfaction, which indicates that increase in time saving leads to increase in customer satisfaction. Likewise, convenience is positively related to customer satisfaction which indicates that higher the convenience, higher would be the customer satisfaction.
The study shows that web design, information quality, time saving, convenience and secure transactions have positive influence on customer satisfaction and customer attitude. The study concludes that customer have positive feelings towards online shopping. People are tradition bound and have doubt in mindset as far as issue of online shopping/purchase of product is concerned. However, the study concludes that customers in Kathmandu valley are finding online shopping very comfortable because of many variables like secure transaction, customization or personalization of the websites, reliable, home delivery etc. The study also concludes that convenience followed by time savings, security and web design are the most dominant factors that influence the customer satisfaction towards online shopping in the context of Kathmandu valley.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 376/D RAN Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Dare to Lead / Brown,Brene
Title : Dare to Lead Material Type: printed text Authors: Brown,Brene, Author Publisher: vermilion Publication Date: 2018 Pagination: 298 Size: fiction ISBN (or other code): 978-1-78504-214-0 Price: 1118.40 Languages : English Dare to Lead [printed text] / Brown,Brene, Author . - [S.l.] : vermilion, 2018 . - 298 ; fiction.
ISBN : 978-1-78504-214-0 : 1118.40
Languages : EnglishHold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 11143 BRO Books Uniglobe Library Philosophy & Psychology Due for return by 07/02/2023 Data Mining ; Concepts and Techniques / Han,Jiawei
Title : Data Mining ; Concepts and Techniques Material Type: printed text Authors: Han,Jiawei, Author Publisher: Relx,India. Publication Date: 2021 Pagination: 702 Size: textbooks ISBN (or other code): 978-93-80931-91-3 Price: RS:1321 Languages : English Data Mining ; Concepts and Techniques [printed text] / Han,Jiawei, Author . - [S.l.] : Relx,India., 2021 . - 702 ; textbooks.
ISBN : 978-93-80931-91-3 : RS:1321
Languages : EnglishHold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 11314 006.312 HAN Books Uniglobe Library Philosophy & Psychology Available 11315 006.312 HAN Books Uniglobe Library Philosophy & Psychology Available DEATH / Sadhguru
Title : DEATH Material Type: printed text Authors: Sadhguru, Author Publisher: Penguin Publication Date: 2020 Pagination: 349 ISBN (or other code): 978-0-14-345083-2 Price: Rs480 Languages : English DEATH [printed text] / Sadhguru, Author . - [S.l.] : Penguin, 2020 . - 349.
ISBN : 978-0-14-345083-2 : Rs480
Languages : EnglishHold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 10975 SAD Books Uniglobe Library Philosophy & Psychology Due for return by 07/08/2023 Decision power: how to make successful decisions with confidence / Kaye, Haryry
Title : Decision power: how to make successful decisions with confidence Material Type: printed text Authors: Kaye, Haryry, Author Publisher: Delhi; Prentice-Hall Publication Date: 1992 Pagination: 206p Size: Book Languages : English Descriptors: Decision making
Problem solvingKeywords: 'problem solving decision making' Class number: 153.83 Decision power: how to make successful decisions with confidence [printed text] / Kaye, Haryry, Author . - [S.l.] : Delhi; Prentice-Hall, 1992 . - 206p ; Book.
Languages : English
Descriptors: Decision making
Problem solvingKeywords: 'problem solving decision making' Class number: 153.83 Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 4290 KAY Books Uniglobe Library Philosophy & Psychology Available Default loan and cost efficiency in Nepalese Commercial banks / Sandeep Singh Sijapati
Title : Default loan and cost efficiency in Nepalese Commercial banks Material Type: printed text Authors: Sandeep Singh Sijapati, Author Publication Date: 2019 Pagination: 110p. Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: Researchers over the last decades believe that there is a connection between default loans and cost efficiency. There are many studies published to examine this relationship. The relationship between default loans and cost efficiency are studied extensively by several researchers. In regards to the relationship between default loans and cost efficiency, researchers found different results. Some of the scholars' state that, default loans has negative relationship with cost efficiency. Meanwhile other researchers indicate the nonlinear negative and positive relationship between default loans and cost efficiency.
This study investigates the impact of default loans and cost efficiency and determinants of default loans and cost efficiency of commercial banks of Nepal. The study has employed descriptive and casual comparative research designs to deal with the fundamental issues associated with default loans and cost efficiencies and factors influencing these parameters in the context of Nepal. The study is based on secondary data. The variables used in the study are categorized into bank specific variables (capital adequacy ratio, return on assets, bank size, risk weighted assets, priority sector lending, credit growth, percentage of loan to deposit and percentage of loans loss provision to total loans). Similarly, this study covers data on bank specific variables for 6 years ranging for year 2011 to 2016.
The study reveals that default loans have significant impact on cost efficiency of banks and suggest specifically that bank should try to minimize default loans in order to achieve cost efficiency. More specifically, the study finds that capital adequacy ratio, credit growth, loan to deposit percentage, priority sector lending, and risk weighted assets, were statistically significant factors that determine the default loans of commercial banks in Nepal. However, the result did not support the significant effect of return on assets. Similarly, default loans, capital adequacy ratio, bank size and loan loss provision were statistically significant factors that determine the cost efficiency of commercial banks in Nepal.
The study observed a positive relationship between return on assets and default loans indicating that profitable banks have high default loans. Hence, it is recommend that banks should be able to maximize and maintain optimum ROA so that they don't have to go for lending in riskier assets to increase revenue. Likewise, the study observed a negative and significant relationship between capital adequacy ratio and default loans. Hence, it is recommended that banks should focus on enhancing their capital, as well capitalized banks are less incentive to take risk which reduces the percentage of problem loans in such banks. The study remains enough ground researchers in the same topic. The future studies can be done by using both secondary and primary data so that along with determinants of default loans and cost efficiency, perception of loan officers, operation officer as well as managers regarding the impact of default loans on cost efficiency can also be obtained. In addition to commercial banks, the future studies can select other financial institutions like development banks, finance companies, micro finance and cooperative scan be included in sample so as to grasp the wider view of impact of default loans on cost efficiency and their determinants.
Default loan and cost efficiency in Nepalese Commercial banks [printed text] / Sandeep Singh Sijapati, Author . - 2019 . - 110p. ; GRP/Thesis + 14/B.
Languages : English
Abstract: Researchers over the last decades believe that there is a connection between default loans and cost efficiency. There are many studies published to examine this relationship. The relationship between default loans and cost efficiency are studied extensively by several researchers. In regards to the relationship between default loans and cost efficiency, researchers found different results. Some of the scholars' state that, default loans has negative relationship with cost efficiency. Meanwhile other researchers indicate the nonlinear negative and positive relationship between default loans and cost efficiency.
This study investigates the impact of default loans and cost efficiency and determinants of default loans and cost efficiency of commercial banks of Nepal. The study has employed descriptive and casual comparative research designs to deal with the fundamental issues associated with default loans and cost efficiencies and factors influencing these parameters in the context of Nepal. The study is based on secondary data. The variables used in the study are categorized into bank specific variables (capital adequacy ratio, return on assets, bank size, risk weighted assets, priority sector lending, credit growth, percentage of loan to deposit and percentage of loans loss provision to total loans). Similarly, this study covers data on bank specific variables for 6 years ranging for year 2011 to 2016.
The study reveals that default loans have significant impact on cost efficiency of banks and suggest specifically that bank should try to minimize default loans in order to achieve cost efficiency. More specifically, the study finds that capital adequacy ratio, credit growth, loan to deposit percentage, priority sector lending, and risk weighted assets, were statistically significant factors that determine the default loans of commercial banks in Nepal. However, the result did not support the significant effect of return on assets. Similarly, default loans, capital adequacy ratio, bank size and loan loss provision were statistically significant factors that determine the cost efficiency of commercial banks in Nepal.
The study observed a positive relationship between return on assets and default loans indicating that profitable banks have high default loans. Hence, it is recommend that banks should be able to maximize and maintain optimum ROA so that they don't have to go for lending in riskier assets to increase revenue. Likewise, the study observed a negative and significant relationship between capital adequacy ratio and default loans. Hence, it is recommended that banks should focus on enhancing their capital, as well capitalized banks are less incentive to take risk which reduces the percentage of problem loans in such banks. The study remains enough ground researchers in the same topic. The future studies can be done by using both secondary and primary data so that along with determinants of default loans and cost efficiency, perception of loan officers, operation officer as well as managers regarding the impact of default loans on cost efficiency can also be obtained. In addition to commercial banks, the future studies can select other financial institutions like development banks, finance companies, micro finance and cooperative scan be included in sample so as to grasp the wider view of impact of default loans on cost efficiency and their determinants.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 612/D SAN Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of audit fees in Nepalese commercial banks / Balbidhya Pandeya
Title : Determinants of audit fees in Nepalese commercial banks Material Type: printed text Authors: Balbidhya Pandeya, Author Publication Date: 2019 Pagination: 106p. Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: The audit fee is the economic compensation for auditors who provide audit services, which are an agency fee according to certain standards. The audit fee comprises the total cost of the audit through the total audit work, the risk compensation and the profit demand. During the authentic audit work, the audit fee stimuli not only audit quality but also the development of accounting firms and the audit industry. The determination of the audit fees is based on the contract between the auditor and the auditee in accordance with time spent on the audit process, the service required, and the number of staff needed for the audit process. It should be mentioned that audit fees are normally determined before starting the audit process. There is a growing trend in recent years in accounting about discussing the issue of audit fees, how do auditors determine the amount of fees required from the auditee. This is an important question that needs an answer. Prior research tried to examine whether determining the audit fees is affected by the audit company attributes (like size, reputation, experience, competition, industry specialization and whether it is from the big four) or by the client’s company characteristics (auditee attributes like size, complexity risk, and profitability).
The study attempts to examine the determinants of audit fees in the Nepalese commercial banks. Audit fees is the dependent variables. The independent variables are profitability, auditor expertise, complexity, leverage and bank size. The study is based on secondary data of 20 commercial banks with 200 observations for the period of 2008/09 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on audit fees in Nepalese commercial banks. The findings of the paper are largely original in the area of audit fees of Nepalese banking.
The result shows that average audit fee is highest for RBB (Rs.24.18 lakhs) and lowest for EBL (Rs. 2.74 lakhs), average leverage is highest for RBB (1 times) and lowest for NICA (0.48 times), average audit committee members is highest for SRBL (4 members) and lowest for EBL(2 members), average complexity is highest for ADBL (239 branches) and lowest for SCBL (17 branches) and average bank size is highest for RBB (121 billion) and lowest for NBB (25.4 billion).
The descriptive statistics shows that the audit fees ranges from a minimum of Rs.1.02 lakhs to a maximum of Rs.39.51 lakhs to an average of Rs.8.11 lakhs. Similarly, the profitability ranges from minimum of 0.04 percent to a maximum of 4.01 percent leading to an average of 1.54 percent. Audit committee members varies from a minimum of 2 members to a maximum of 6 members leading to an average of 3 members. Similarly, complexity varies from minimum of 2 branches to a maximum of 249 branches leading to an average of 60 branches. Leverage ranges from a minimum of 0.02 times to a maximum of 1.20 times leading to an average of 0.87 times. Bank size varies from a minimum of Rs.27 billion to a maximum of Rs.258.66 billion leading to an average of Rs.56.72 billion.
The result shows profitability has a positive relationship with audit fees. It indicates that increase in bank profitability leads to increase in audit fees. The results also show that audit committee members has a negative relationship with audit fees. It indicates that increase in members of internal audit committee leads to decrease audit fees. Similarly, complexity has a positive and significant relationship with audit fees. It reveals that increase in number of banks subsidiaries leads to increase audit fees. Likewise, leverage has a positive relationship with audit fees. It indicates that increase in banks risk leads to increase audit fees. Similarly, bank size has positive and significant relationship with audit fees. It indicates that increase in bank size leads to increase in audit fees.
The regression analysis shows that beta coefficients for profitability, audit committee members and leverage are positive with audit fees. The result also shows that the beta coefficients for profitability are significant at 5 percent level of significance. This indicates that profitability, audit committee members and leverage has positive effect on audit fees. Similarly, the beta coefficients for bank size and complexity are positive with audit fees. It shows coefficients for bank size, and complexity has positive impact on audit fees. The result also shows that the beta coefficients for bank size and complexity are significant at 1 percent level of significance.
Determinants of audit fees in Nepalese commercial banks [printed text] / Balbidhya Pandeya, Author . - 2019 . - 106p. ; GRP/Thesis + 14/B.
Languages : English
Abstract: The audit fee is the economic compensation for auditors who provide audit services, which are an agency fee according to certain standards. The audit fee comprises the total cost of the audit through the total audit work, the risk compensation and the profit demand. During the authentic audit work, the audit fee stimuli not only audit quality but also the development of accounting firms and the audit industry. The determination of the audit fees is based on the contract between the auditor and the auditee in accordance with time spent on the audit process, the service required, and the number of staff needed for the audit process. It should be mentioned that audit fees are normally determined before starting the audit process. There is a growing trend in recent years in accounting about discussing the issue of audit fees, how do auditors determine the amount of fees required from the auditee. This is an important question that needs an answer. Prior research tried to examine whether determining the audit fees is affected by the audit company attributes (like size, reputation, experience, competition, industry specialization and whether it is from the big four) or by the client’s company characteristics (auditee attributes like size, complexity risk, and profitability).
The study attempts to examine the determinants of audit fees in the Nepalese commercial banks. Audit fees is the dependent variables. The independent variables are profitability, auditor expertise, complexity, leverage and bank size. The study is based on secondary data of 20 commercial banks with 200 observations for the period of 2008/09 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on audit fees in Nepalese commercial banks. The findings of the paper are largely original in the area of audit fees of Nepalese banking.
The result shows that average audit fee is highest for RBB (Rs.24.18 lakhs) and lowest for EBL (Rs. 2.74 lakhs), average leverage is highest for RBB (1 times) and lowest for NICA (0.48 times), average audit committee members is highest for SRBL (4 members) and lowest for EBL(2 members), average complexity is highest for ADBL (239 branches) and lowest for SCBL (17 branches) and average bank size is highest for RBB (121 billion) and lowest for NBB (25.4 billion).
The descriptive statistics shows that the audit fees ranges from a minimum of Rs.1.02 lakhs to a maximum of Rs.39.51 lakhs to an average of Rs.8.11 lakhs. Similarly, the profitability ranges from minimum of 0.04 percent to a maximum of 4.01 percent leading to an average of 1.54 percent. Audit committee members varies from a minimum of 2 members to a maximum of 6 members leading to an average of 3 members. Similarly, complexity varies from minimum of 2 branches to a maximum of 249 branches leading to an average of 60 branches. Leverage ranges from a minimum of 0.02 times to a maximum of 1.20 times leading to an average of 0.87 times. Bank size varies from a minimum of Rs.27 billion to a maximum of Rs.258.66 billion leading to an average of Rs.56.72 billion.
The result shows profitability has a positive relationship with audit fees. It indicates that increase in bank profitability leads to increase in audit fees. The results also show that audit committee members has a negative relationship with audit fees. It indicates that increase in members of internal audit committee leads to decrease audit fees. Similarly, complexity has a positive and significant relationship with audit fees. It reveals that increase in number of banks subsidiaries leads to increase audit fees. Likewise, leverage has a positive relationship with audit fees. It indicates that increase in banks risk leads to increase audit fees. Similarly, bank size has positive and significant relationship with audit fees. It indicates that increase in bank size leads to increase in audit fees.
The regression analysis shows that beta coefficients for profitability, audit committee members and leverage are positive with audit fees. The result also shows that the beta coefficients for profitability are significant at 5 percent level of significance. This indicates that profitability, audit committee members and leverage has positive effect on audit fees. Similarly, the beta coefficients for bank size and complexity are positive with audit fees. It shows coefficients for bank size, and complexity has positive impact on audit fees. The result also shows that the beta coefficients for bank size and complexity are significant at 1 percent level of significance.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 604/D BAL Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of bank stability : A case of nepalese commercial banks / Narayan Prasad Belbase
Title : Determinants of bank stability : A case of nepalese commercial banks Material Type: printed text Authors: Narayan Prasad Belbase, Author Publication Date: 2019 Pagination: 124p. Size: GRP/Thesis Accompanying material: 15th Languages : English Abstract: A financial system is in a range of stability when it dissipates financial imbalances that arise endogenously or as a result of significant adverse and unforeseen events. In stability, the system will absorb the shocks primarily via self-corrective mechanisms, preventing adverse events from having a disruptive effect on the real economy or on other financial systems. Bank stability is paramount for economic growth, as most transactions in the real economy are made through the banking system. Bank stability is a system that can be characterized as stability in the absence of excessive volatility and stress or crises in the banking sector. A common measure of stability at the level of individual institutions is the z-score. The popularity of the z-score stems from the fact that it has a clear (negative) relationship to the probability of a bank and financial institution’s insolvency, that is, the probability that the value of its assets becomes lower than the value of its debt. A higher z-score therefore implies a lower probability of insolvency.
The study attempts to examine the determinants of bank stability of the Nepalese commercial banks. Bank stability measured in terms of Z-score return on assets and Z-score return on equity are the dependent variables. The independent variables are bank size, income diversity, operating expenses, liquidity ratio, gross domestic product and inflation. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of bank stability of Nepalese banking.
The result shows that average Z-score of return on assets is highest for NABIL (4.37) and lowest for MBL(1.82), average Z-score of return on equity is highest for NABIL (4.27) and lowest for MBL (1.75), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average income diversity is highest for NBBL (3.08 percent) and lowest for RBBL (-4.55 percent), average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion) and average liquidity is highest for ADBL (89.73 percent) and lowest for SCBL (57.43 percent).
The descriptive statistics shows that the Z-score return on assets ranges from a minimum of 0.38 percent to a maximum of 6.29 percent to an average of 2.86 percent. Similarly, the Z-score return on equity ranges from minimum of 0.23 percent to a maximum of 8.38 percent, leading to an average of 2.67 percent. Bank size varies from a minimum of 21.30 to a maximum of 26.01, leading to an average of 24.81. Similarly, Income diversity ranges from a minimum of -5.81 percent to a maximum of 0.57 percent, leading to an average of 0.28 percent. Operating expenses varies from a minimum of 18.44 to a maximum of 22.15, leading to an average of 20.73, liquidity ratio ranges from minimum of 46.08 percent to a maximum of 96.33 percent, leading to an average of 77.29 percent. Similarly, the gross domestic product ranges from minimum of 0.20 percent to a maximum of 7.40 percent, leading to an average of 4.41 percent. Likewise, inflation varies from 4.10 percent to a maximum of 9.90 percent, leading to an average of 7.57percent.
The result shows bank size has a positive relationship with Z-score return on assets. It indicates that higher the bank size, the bank would be more stable. Similarly, the results also show that income diversity has a positive relationship with Z-score return on assets. It indicates that higher the income diversity, higher would be the bank stability. Operating expenses has a positive and significant relationship with Z-score return on assets. It reveals that higher the operating expenses, the bank would be more stable. Likewise, liquidity ratio has a negative relationship with Z-score return on assets. It indicates that increase in liquidity leads bank to be less stable. Result also shows that gross domestic product has a positive relationship with Z-score return on assets. It indicates that higher the gross domestic product, the bank would be more stable. However, inflation rate has a negative relationship with Z-score return on assets. It reveals that higher the inflation rate lower would be the bank stability.
The result also reveals that bank size has a positive and significant relationship with Z-score return on equity. It indicates that higher the bank size, the bank would be more stable. Similarly, income diversity has a positive relationship with Z-score return on equity. It reveals that higher the income diversity, higher would be the bank stability. Operating expenses has a positive relationship with Z-return on equity. It indicates that higher the operating expenses, higher would be the bank stability. Similarly, liquidity ratio has a negative relationship with Z-score return on equity which indicates that higher the liquidity the bank would be less stable. However, gross domestic product has a negative and significant relationship with Z-return on equity. It indicates that higher gross domestic product, lower would be the bank stability. The result also shows that inflation rate has a positive relationship with Z-return on equity. It reveals that higher the inflation rate, higher would be the bank stability.
The regression results of Z-score return on assets shows that the beta coefficients for inflation are negative with Z-score return on assets. It indicates inflation has negative impact on level of stability. However, the beta coefficients for bank size are positive with Z-score return on assets. This indicates that bank size has positive effect on level of stability. Likewise, the result shows that the beta coefficients for income diversity are positive with Z-score return on assets. It shows that income diversity has positive impact on level of stability. Likewise, the beta coefficients for operating expenses are positive with Z-score return on assets. It shows that for operating expenses has positive impact on level of stability. The result also shows that the beta coefficients for liquidity are negative with Z-score return on assets. It indicates liquidity ratio has negative impact on stability. Similarly, the beta coefficients for gross domestic product are positive with Z-score return on assets. It shows that gross domestic product has positive impact on level of stability. The result also shows that the beta coefficients for operating expenses are significant at 1 percent level of significance and bank size is significant at 5 percent level of significance
The regression results of Z-score return on equity shows that the beta coefficient for liquidity ratio is negative with Z-score return on equity. This indicates that liquidity ratio has negative effect on level of stability. Likewise, the beta coefficients for gross domestic product are negative with Z-score return on equity. It indicates that gross domestic product has negative effect on level of stability. The result also shows that the beta coefficients for gross domestic product are significant at 5 percent level of significance. However, the results also show that the beta coefficients for bank size are positive with Z-score return on equity. It shows that bank size has positive impact on level of stability. The result also shows that the beta coefficients for income diversity are positive with Z-score return on equity. It indicates income diversity has positive effect on stability. Similarly, the beta coefficients for operating expenses are positive with Z-score return on equity. It shows that operating expenses has positive impact on level of stability. Likewise, the beta coefficients for inflation are positive with Z-score return on equity. It shows that for inflation has positive impact on level of stability. The result also shows that the beta coefficients for GDP and inflation are significant at 5 percent level of significance and beta coefficients for bank size and liquidity are significant at 1 percent level of significance
Determinants of bank stability : A case of nepalese commercial banks [printed text] / Narayan Prasad Belbase, Author . - 2019 . - 124p. ; GRP/Thesis + 15th.
Languages : English
Abstract: A financial system is in a range of stability when it dissipates financial imbalances that arise endogenously or as a result of significant adverse and unforeseen events. In stability, the system will absorb the shocks primarily via self-corrective mechanisms, preventing adverse events from having a disruptive effect on the real economy or on other financial systems. Bank stability is paramount for economic growth, as most transactions in the real economy are made through the banking system. Bank stability is a system that can be characterized as stability in the absence of excessive volatility and stress or crises in the banking sector. A common measure of stability at the level of individual institutions is the z-score. The popularity of the z-score stems from the fact that it has a clear (negative) relationship to the probability of a bank and financial institution’s insolvency, that is, the probability that the value of its assets becomes lower than the value of its debt. A higher z-score therefore implies a lower probability of insolvency.
The study attempts to examine the determinants of bank stability of the Nepalese commercial banks. Bank stability measured in terms of Z-score return on assets and Z-score return on equity are the dependent variables. The independent variables are bank size, income diversity, operating expenses, liquidity ratio, gross domestic product and inflation. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of bank stability of Nepalese banking.
The result shows that average Z-score of return on assets is highest for NABIL (4.37) and lowest for MBL(1.82), average Z-score of return on equity is highest for NABIL (4.27) and lowest for MBL (1.75), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average income diversity is highest for NBBL (3.08 percent) and lowest for RBBL (-4.55 percent), average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion) and average liquidity is highest for ADBL (89.73 percent) and lowest for SCBL (57.43 percent).
The descriptive statistics shows that the Z-score return on assets ranges from a minimum of 0.38 percent to a maximum of 6.29 percent to an average of 2.86 percent. Similarly, the Z-score return on equity ranges from minimum of 0.23 percent to a maximum of 8.38 percent, leading to an average of 2.67 percent. Bank size varies from a minimum of 21.30 to a maximum of 26.01, leading to an average of 24.81. Similarly, Income diversity ranges from a minimum of -5.81 percent to a maximum of 0.57 percent, leading to an average of 0.28 percent. Operating expenses varies from a minimum of 18.44 to a maximum of 22.15, leading to an average of 20.73, liquidity ratio ranges from minimum of 46.08 percent to a maximum of 96.33 percent, leading to an average of 77.29 percent. Similarly, the gross domestic product ranges from minimum of 0.20 percent to a maximum of 7.40 percent, leading to an average of 4.41 percent. Likewise, inflation varies from 4.10 percent to a maximum of 9.90 percent, leading to an average of 7.57percent.
The result shows bank size has a positive relationship with Z-score return on assets. It indicates that higher the bank size, the bank would be more stable. Similarly, the results also show that income diversity has a positive relationship with Z-score return on assets. It indicates that higher the income diversity, higher would be the bank stability. Operating expenses has a positive and significant relationship with Z-score return on assets. It reveals that higher the operating expenses, the bank would be more stable. Likewise, liquidity ratio has a negative relationship with Z-score return on assets. It indicates that increase in liquidity leads bank to be less stable. Result also shows that gross domestic product has a positive relationship with Z-score return on assets. It indicates that higher the gross domestic product, the bank would be more stable. However, inflation rate has a negative relationship with Z-score return on assets. It reveals that higher the inflation rate lower would be the bank stability.
The result also reveals that bank size has a positive and significant relationship with Z-score return on equity. It indicates that higher the bank size, the bank would be more stable. Similarly, income diversity has a positive relationship with Z-score return on equity. It reveals that higher the income diversity, higher would be the bank stability. Operating expenses has a positive relationship with Z-return on equity. It indicates that higher the operating expenses, higher would be the bank stability. Similarly, liquidity ratio has a negative relationship with Z-score return on equity which indicates that higher the liquidity the bank would be less stable. However, gross domestic product has a negative and significant relationship with Z-return on equity. It indicates that higher gross domestic product, lower would be the bank stability. The result also shows that inflation rate has a positive relationship with Z-return on equity. It reveals that higher the inflation rate, higher would be the bank stability.
The regression results of Z-score return on assets shows that the beta coefficients for inflation are negative with Z-score return on assets. It indicates inflation has negative impact on level of stability. However, the beta coefficients for bank size are positive with Z-score return on assets. This indicates that bank size has positive effect on level of stability. Likewise, the result shows that the beta coefficients for income diversity are positive with Z-score return on assets. It shows that income diversity has positive impact on level of stability. Likewise, the beta coefficients for operating expenses are positive with Z-score return on assets. It shows that for operating expenses has positive impact on level of stability. The result also shows that the beta coefficients for liquidity are negative with Z-score return on assets. It indicates liquidity ratio has negative impact on stability. Similarly, the beta coefficients for gross domestic product are positive with Z-score return on assets. It shows that gross domestic product has positive impact on level of stability. The result also shows that the beta coefficients for operating expenses are significant at 1 percent level of significance and bank size is significant at 5 percent level of significance
The regression results of Z-score return on equity shows that the beta coefficient for liquidity ratio is negative with Z-score return on equity. This indicates that liquidity ratio has negative effect on level of stability. Likewise, the beta coefficients for gross domestic product are negative with Z-score return on equity. It indicates that gross domestic product has negative effect on level of stability. The result also shows that the beta coefficients for gross domestic product are significant at 5 percent level of significance. However, the results also show that the beta coefficients for bank size are positive with Z-score return on equity. It shows that bank size has positive impact on level of stability. The result also shows that the beta coefficients for income diversity are positive with Z-score return on equity. It indicates income diversity has positive effect on stability. Similarly, the beta coefficients for operating expenses are positive with Z-score return on equity. It shows that operating expenses has positive impact on level of stability. Likewise, the beta coefficients for inflation are positive with Z-score return on equity. It shows that for inflation has positive impact on level of stability. The result also shows that the beta coefficients for GDP and inflation are significant at 5 percent level of significance and beta coefficients for bank size and liquidity are significant at 1 percent level of significance
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 700/D NAR Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of capital structure in Nepalese commercial banks / Lalit Prasad Timalsina
Title : Determinants of capital structure in Nepalese commercial banks Material Type: printed text Authors: Lalit Prasad Timalsina, Author Pagination: 122p. Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: Capital structure of a firm describes the way in which a firm raises capital needed to establish and expand its business activities. The capital structure decision is one of the most important decisions made by financial managers in this modern era. The capital structure decision is at the center of many other decisions in the area of corporate finance. One of the many objectives of a corporate financial manager is to ensure low cost of capital and thus maximize the wealth of shareholders. Hence, capital structure is one of the effective tools of management to manage the cost of capital. Capital structure choice has inspired and fascinated many researchers. The theoretical determinants of capital structure attributed namely; asset structure, non-debt tax shields, growth, uniqueness, industry classification, firm size, earnings volatility and profitability were tested to see how they affect a firm’s choice of debt-equity mix.
The study attempts to examine the determinants of capital structure in Nepalese commercial banks. Total debt to total assets ratio and total debt to total equity ratio are the dependent variables. The independent variables are return on assets, bank size, asset tangibility, assets growth and liquidity. The study is based on secondary data of 16 commercial banks with 112 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of capital structure of Nepalese banking.
The result shows that the average total debt to total asset for Nepalese commercial banks is highest for SRBL (12.31%) and lowest for GIBL (3.55%). The results show decreasing trend of average return on asset. The structure and pattern of average total debt to total equity for Nepalese commercial banks is highest for EBL (12.57%) and lowest for GIBL (2.25%). The results also show a decreasing trend of average total debt to total equity. The structure and pattern of return on assets for Nepalese commercial banks is highest for NABIL (2.85%) and lowest for MBL (1.12%). The structure and pattern of bank size for Nepalese commercial banks is highest for NIBL (25.38) and lowest for SRBL (24.31). The structure and pattern of average assets tangibility for Nepalese commercial banks is highest for CIBL (1.88%) and lowest for SCBL (0.21%). The structure and pattern of average assets growth for Nepalese commercial banks is highest for NICA (36.98 %) and lowest for ADBL (14.11 %). The structure and pattern of liquidity ratio for the Nepalese commercial bank is highest for GIBL (31.93%) and lowest for HBL (7.30%).
The descriptive statistics shows total debt to total assets ranges from a minimum of 2.31 percent to the maximum of 16.98 percent to the average of 9.30. However, total debt to total equity ranges from minimum of 0.87 percent to maximum of 16.87 percent leading to an average of 8.94 percent. The average return on assets of selected commercial banks during the study period is noticed to be with a minimum of 0.15 percent and a maximum of 4.01 percent with an average of 1.76 percent. Likewise, bank size a minimum of 23.61 to maximum of 25.87 with an average of 24.84. The average of assets tangibility of selected commercial banks during the study period is noticed to be 1.01 percent with minimum of 0.08 percent and maximum of 2.78 percent. Similarly, the average of assets growth during the study period is noticed to be 22.25 percent with a minimum of -27.13 percent and a maximum of 88.14 percent. And the liquidity ratio ranges from minimum of 4.90 percent to maximum of 36.65 percent, leading to an average of 16.64 percent.
The result shows that there is a negative relationship between return on assets and total debt to total assets ratio. This means that increase in return on assets, leads to decrease in total debt to total assets ratio. Similarly, there is a positive relationship between bank size rate and total debt to total assets ratio. It indicates that higher bank size leads to increase in total debt to total assets ratio. Likewise, there is a positive relationship between tangibility and total debt to total assets ratio. This means that increase in assets tangibility leads to increase in total debt to assets ratio. Further, there is a negative relationship between assets growth and total debt to total assets ratio. This means that higher assets growth leads to decrease in total debt to assets ratio. However, there is a negative relationship between liquidity and total debt to total assets ratio. This means that increase in liquidity ratio leads to decrease in total debt to total assets ratio.
Similarly, the result shows that there is a negative relationship between return on assets and total debt to total equity ratio. This means that increase in return on assets, leads to decrease in total debt to total equity ratio. Similarly, bank size is negatively related to total debt to total equity ratio. It indicates that larger bank size leads to decrease in total debt to total equity ratio. Likewise, tangibility has a negative relation with total debt to total equity ratio. This means that decrease in assets tangibility leads to increase in total debt to total equity ratio. Further, there is a negative relationship between assets growth and total debt to total equity ratio. This means that higher assets growth leads to decrease in total debt to equity ratio. Similarly, there is a negative relationship between liquidity and total debt to total equity ratio. This means that increase in liquidity ratio leads to decrease in total debt to total equity ratio.
The regression shows the return on assets has negative and significant impact on total debt to total assets ratio. The asset growth has negative impact on total debt to total assets ratio. Similarly, liquidity ratio has negative and significant impact on total debt to total assets ratio. Bank size has positive impact on total debt to total assets ratio. Similarly, assets tangibility has positive impact on return on assets.
The regression also shows that return on assets has negative and significant impact on total debt to total equity ratio. Bank size has negative and significant impact on total debt to total assets ratio. Assets tangibility has negative impact on total debt to total equity ratio. Similarly, assets growth rate has negative impact on net interest margin. Likewise, liquidity ratio has negative and significant impact on total debt to total equity ratio.
Determinants of capital structure in Nepalese commercial banks [printed text] / Lalit Prasad Timalsina, Author . - [s.d.] . - 122p. ; GRP/Thesis + 14/B.
Languages : English
Abstract: Capital structure of a firm describes the way in which a firm raises capital needed to establish and expand its business activities. The capital structure decision is one of the most important decisions made by financial managers in this modern era. The capital structure decision is at the center of many other decisions in the area of corporate finance. One of the many objectives of a corporate financial manager is to ensure low cost of capital and thus maximize the wealth of shareholders. Hence, capital structure is one of the effective tools of management to manage the cost of capital. Capital structure choice has inspired and fascinated many researchers. The theoretical determinants of capital structure attributed namely; asset structure, non-debt tax shields, growth, uniqueness, industry classification, firm size, earnings volatility and profitability were tested to see how they affect a firm’s choice of debt-equity mix.
The study attempts to examine the determinants of capital structure in Nepalese commercial banks. Total debt to total assets ratio and total debt to total equity ratio are the dependent variables. The independent variables are return on assets, bank size, asset tangibility, assets growth and liquidity. The study is based on secondary data of 16 commercial banks with 112 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of capital structure of Nepalese banking.
The result shows that the average total debt to total asset for Nepalese commercial banks is highest for SRBL (12.31%) and lowest for GIBL (3.55%). The results show decreasing trend of average return on asset. The structure and pattern of average total debt to total equity for Nepalese commercial banks is highest for EBL (12.57%) and lowest for GIBL (2.25%). The results also show a decreasing trend of average total debt to total equity. The structure and pattern of return on assets for Nepalese commercial banks is highest for NABIL (2.85%) and lowest for MBL (1.12%). The structure and pattern of bank size for Nepalese commercial banks is highest for NIBL (25.38) and lowest for SRBL (24.31). The structure and pattern of average assets tangibility for Nepalese commercial banks is highest for CIBL (1.88%) and lowest for SCBL (0.21%). The structure and pattern of average assets growth for Nepalese commercial banks is highest for NICA (36.98 %) and lowest for ADBL (14.11 %). The structure and pattern of liquidity ratio for the Nepalese commercial bank is highest for GIBL (31.93%) and lowest for HBL (7.30%).
The descriptive statistics shows total debt to total assets ranges from a minimum of 2.31 percent to the maximum of 16.98 percent to the average of 9.30. However, total debt to total equity ranges from minimum of 0.87 percent to maximum of 16.87 percent leading to an average of 8.94 percent. The average return on assets of selected commercial banks during the study period is noticed to be with a minimum of 0.15 percent and a maximum of 4.01 percent with an average of 1.76 percent. Likewise, bank size a minimum of 23.61 to maximum of 25.87 with an average of 24.84. The average of assets tangibility of selected commercial banks during the study period is noticed to be 1.01 percent with minimum of 0.08 percent and maximum of 2.78 percent. Similarly, the average of assets growth during the study period is noticed to be 22.25 percent with a minimum of -27.13 percent and a maximum of 88.14 percent. And the liquidity ratio ranges from minimum of 4.90 percent to maximum of 36.65 percent, leading to an average of 16.64 percent.
The result shows that there is a negative relationship between return on assets and total debt to total assets ratio. This means that increase in return on assets, leads to decrease in total debt to total assets ratio. Similarly, there is a positive relationship between bank size rate and total debt to total assets ratio. It indicates that higher bank size leads to increase in total debt to total assets ratio. Likewise, there is a positive relationship between tangibility and total debt to total assets ratio. This means that increase in assets tangibility leads to increase in total debt to assets ratio. Further, there is a negative relationship between assets growth and total debt to total assets ratio. This means that higher assets growth leads to decrease in total debt to assets ratio. However, there is a negative relationship between liquidity and total debt to total assets ratio. This means that increase in liquidity ratio leads to decrease in total debt to total assets ratio.
Similarly, the result shows that there is a negative relationship between return on assets and total debt to total equity ratio. This means that increase in return on assets, leads to decrease in total debt to total equity ratio. Similarly, bank size is negatively related to total debt to total equity ratio. It indicates that larger bank size leads to decrease in total debt to total equity ratio. Likewise, tangibility has a negative relation with total debt to total equity ratio. This means that decrease in assets tangibility leads to increase in total debt to total equity ratio. Further, there is a negative relationship between assets growth and total debt to total equity ratio. This means that higher assets growth leads to decrease in total debt to equity ratio. Similarly, there is a negative relationship between liquidity and total debt to total equity ratio. This means that increase in liquidity ratio leads to decrease in total debt to total equity ratio.
The regression shows the return on assets has negative and significant impact on total debt to total assets ratio. The asset growth has negative impact on total debt to total assets ratio. Similarly, liquidity ratio has negative and significant impact on total debt to total assets ratio. Bank size has positive impact on total debt to total assets ratio. Similarly, assets tangibility has positive impact on return on assets.
The regression also shows that return on assets has negative and significant impact on total debt to total equity ratio. Bank size has negative and significant impact on total debt to total assets ratio. Assets tangibility has negative impact on total debt to total equity ratio. Similarly, assets growth rate has negative impact on net interest margin. Likewise, liquidity ratio has negative and significant impact on total debt to total equity ratio.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 658/D LAL Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of capital structure of Nepalese insurance companies / Sangita Saud
Title : Determinants of capital structure of Nepalese insurance companies Material Type: printed text Authors: Sangita Saud, Author Publication Date: 2019 Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: Capital structure can be defined as permanent financing of the firm that is represented by debt, preferred stock and equity. Generally, it refers with the combination of the long term sources of the fund. Capital structure decisions are among the most important financing decisions companies would have to experience. Under the perfect capital market assumption, if there is no bankrupt cost and without taxes, the firm's value is independent with the capital structure. Financial institutions like insurance companies are very important to enhance economic growth and development. Insurance companies serve the needs of business units and private individuals in financial intermediation. Insurance companies play a key role in financial sector. In developed countries, it accounts for a significant portion of the economy. By collecting relative premium from many small individuals in the economy, insurance companies are able to pull a large pool of funds that could be invested in both short and long term periods. Capital is considered as the cornerstone of insurance’s financial strength since it supports insurance operations by providing a buffer to absorb unanticipated losses from its activities and, in the event of problems, enabling the bank to continue to operate in a sound and viable manner while the problems are addressed or resolved.
The study attempts to examine the determinants of capital structure of Nepalese insurance companies. Total debt to equity and total debt to total assets are the dependent variables. The independent variables are firm size, profitability, assets growth rate, tangibility and liquidity. The study is based on secondary data of 16 insurance companies with 128 observations for the period of 2010/11 to 2017/18. The secondary data and information have been collected from annual reports of selected insurance companies. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese insurance companies. The findings of the paper are largely original in the area of capital structure of Nepalese insurance companies.
The result shows that average total debt to total equity for Nepalese insurance companies is highest for UIC (94.33%) and lowest for NALIC (2.73%), average total debt to total assets for Nepalese insurance companies is highest for LGIL (60.56%) and lowest for ALICL (6.80%). average liquidity ratio for Nepalese insurance companies is highest for NLIC (8.51%) and lowest for SGIC (0.26%). average return on assets for Nepalese insurance companies is highest for PICL (12.30%) and lowest for LIC (1.16%), average firm size for Nepalese insurance companies is highest for NLIC (3582.95 million) and lowest for HGI (472.62million), average assets tangibility for Nepalese insurance companies is highest for NALIC (31%) and lowest for GICIL (1.75%) and average assets growth for the Nepalese insurance companies is highest for SLICL (56.84%) and lowest for UIC(14.89%).
The descriptive statistics shows that total debt equity ranges from a minimum of 0.45 percent to the maximum of 156.08 percent to the average of. 31.83. However, total debt assets ranges from minimum of 0.47 percent to maximum of 175.73 percent leading to an average of 27.97 percent. The average firm size of selected insurance companies during the study period is noticed to be with a minimum of 38.28 million and a maximum of 9514.64 million with an average of 1686.56 million. Likewise, return of assets a minimum of 0 percent to maximum of 15.73 percent with an average of 5.78 percent. The average of assets growth of selected insurance companies during the study period is noticed to be 30.94 percent with minimum of -47.90 percent and maximum of 298.09 percent. Similarly, the average of assets tangibility during the study period is noticed to be 10.10 percent with a minimum of 0.03 percent and a maximum of 54.42 percent. And the liquidity ratio ranges from minimum of 0.03 percent to maximum of 17.22 percent, leading to an average of 2.37 percent.
The result also shows that there is positive relationship between return on assets and total debt asset ratio. This means that higher the return on assets, higher would be the total debt asset ratio. Similarly, the result also shows that there is positive relationship between asset growth and total debt asset ratio. This means that higher the asset growth, higher would be the total debt asset ratio. However, the result also shows that there is positive relationship between asset tangibility and total debt asset ratio. This means that higher the asset tangibility, higher would be the total debt asset ratio. Similarly, the result also shows that there is positive relationship between liquidity and total debt asset ratio. This means that higher the liquidity, higher would be the total debt asset ratio. Similarly, there is negative relationship of firm size with total debt asset ratio. It means that larger the firm size, higher would be the total debt asset ratio.
The result also shows that there is positive relationship between return on assets and total debt equity ratio. This means that higher the ROA, higher would be the total debt equity ratio. Similarly, the result shows that there is negative relationship between assets growth and total debt equity ratio. It indicates that higher the assets growth, lower would be the total debt equity ratio. Similarly, the results show that there is positive relationship between assets tangibility and total debt equity ratio. This means that higher the assets tangibility, higher would be the total debt equity ratio. Likewise, the results show that there is negative relationship between liquidity and total debt equity ratio. This means that higher the liquidity, lower would be the total debt equity ratio. Similarly, firm size has negative relationship with total debt equity ratio. This means that larger the firm size, lower would be the total debt equity ratio.
The regression analysis shows that beta coefficients are negative for asset growth, liquidity ratio and firm size indicating that higher the asset growth, liquidity ratio and firm size, lower would be the total debt equity and vice-versa. However, it is positive for return on assets and asset tangibility indicating that higher the return on assets and asset tangibility higher would be the total debt equity ratio and vice-versa.
The regression analysis shows that beta coefficients are negative for firm size indicating that higher the firm size lower would be the total debt asset and vice-versa. However, it is positive for return on assets, asset growth, asset tangibility and liquidity ratio indicating that higher the return on assets, asset growth, asset tangibility and liquidity ratio higher would be the total debt asset and vice-versa.
Determinants of capital structure of Nepalese insurance companies [printed text] / Sangita Saud, Author . - 2019 . - ; GRP/Thesis + 14/B.
Languages : English
Abstract: Capital structure can be defined as permanent financing of the firm that is represented by debt, preferred stock and equity. Generally, it refers with the combination of the long term sources of the fund. Capital structure decisions are among the most important financing decisions companies would have to experience. Under the perfect capital market assumption, if there is no bankrupt cost and without taxes, the firm's value is independent with the capital structure. Financial institutions like insurance companies are very important to enhance economic growth and development. Insurance companies serve the needs of business units and private individuals in financial intermediation. Insurance companies play a key role in financial sector. In developed countries, it accounts for a significant portion of the economy. By collecting relative premium from many small individuals in the economy, insurance companies are able to pull a large pool of funds that could be invested in both short and long term periods. Capital is considered as the cornerstone of insurance’s financial strength since it supports insurance operations by providing a buffer to absorb unanticipated losses from its activities and, in the event of problems, enabling the bank to continue to operate in a sound and viable manner while the problems are addressed or resolved.
The study attempts to examine the determinants of capital structure of Nepalese insurance companies. Total debt to equity and total debt to total assets are the dependent variables. The independent variables are firm size, profitability, assets growth rate, tangibility and liquidity. The study is based on secondary data of 16 insurance companies with 128 observations for the period of 2010/11 to 2017/18. The secondary data and information have been collected from annual reports of selected insurance companies. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese insurance companies. The findings of the paper are largely original in the area of capital structure of Nepalese insurance companies.
The result shows that average total debt to total equity for Nepalese insurance companies is highest for UIC (94.33%) and lowest for NALIC (2.73%), average total debt to total assets for Nepalese insurance companies is highest for LGIL (60.56%) and lowest for ALICL (6.80%). average liquidity ratio for Nepalese insurance companies is highest for NLIC (8.51%) and lowest for SGIC (0.26%). average return on assets for Nepalese insurance companies is highest for PICL (12.30%) and lowest for LIC (1.16%), average firm size for Nepalese insurance companies is highest for NLIC (3582.95 million) and lowest for HGI (472.62million), average assets tangibility for Nepalese insurance companies is highest for NALIC (31%) and lowest for GICIL (1.75%) and average assets growth for the Nepalese insurance companies is highest for SLICL (56.84%) and lowest for UIC(14.89%).
The descriptive statistics shows that total debt equity ranges from a minimum of 0.45 percent to the maximum of 156.08 percent to the average of. 31.83. However, total debt assets ranges from minimum of 0.47 percent to maximum of 175.73 percent leading to an average of 27.97 percent. The average firm size of selected insurance companies during the study period is noticed to be with a minimum of 38.28 million and a maximum of 9514.64 million with an average of 1686.56 million. Likewise, return of assets a minimum of 0 percent to maximum of 15.73 percent with an average of 5.78 percent. The average of assets growth of selected insurance companies during the study period is noticed to be 30.94 percent with minimum of -47.90 percent and maximum of 298.09 percent. Similarly, the average of assets tangibility during the study period is noticed to be 10.10 percent with a minimum of 0.03 percent and a maximum of 54.42 percent. And the liquidity ratio ranges from minimum of 0.03 percent to maximum of 17.22 percent, leading to an average of 2.37 percent.
The result also shows that there is positive relationship between return on assets and total debt asset ratio. This means that higher the return on assets, higher would be the total debt asset ratio. Similarly, the result also shows that there is positive relationship between asset growth and total debt asset ratio. This means that higher the asset growth, higher would be the total debt asset ratio. However, the result also shows that there is positive relationship between asset tangibility and total debt asset ratio. This means that higher the asset tangibility, higher would be the total debt asset ratio. Similarly, the result also shows that there is positive relationship between liquidity and total debt asset ratio. This means that higher the liquidity, higher would be the total debt asset ratio. Similarly, there is negative relationship of firm size with total debt asset ratio. It means that larger the firm size, higher would be the total debt asset ratio.
The result also shows that there is positive relationship between return on assets and total debt equity ratio. This means that higher the ROA, higher would be the total debt equity ratio. Similarly, the result shows that there is negative relationship between assets growth and total debt equity ratio. It indicates that higher the assets growth, lower would be the total debt equity ratio. Similarly, the results show that there is positive relationship between assets tangibility and total debt equity ratio. This means that higher the assets tangibility, higher would be the total debt equity ratio. Likewise, the results show that there is negative relationship between liquidity and total debt equity ratio. This means that higher the liquidity, lower would be the total debt equity ratio. Similarly, firm size has negative relationship with total debt equity ratio. This means that larger the firm size, lower would be the total debt equity ratio.
The regression analysis shows that beta coefficients are negative for asset growth, liquidity ratio and firm size indicating that higher the asset growth, liquidity ratio and firm size, lower would be the total debt equity and vice-versa. However, it is positive for return on assets and asset tangibility indicating that higher the return on assets and asset tangibility higher would be the total debt equity ratio and vice-versa.
The regression analysis shows that beta coefficients are negative for firm size indicating that higher the firm size lower would be the total debt asset and vice-versa. However, it is positive for return on assets, asset growth, asset tangibility and liquidity ratio indicating that higher the return on assets, asset growth, asset tangibility and liquidity ratio higher would be the total debt asset and vice-versa.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 615/D SAU Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of cash holding of Nepalese commercial banks / Usmita Dahal
Title : Determinants of cash holding of Nepalese commercial banks Material Type: printed text Authors: Usmita Dahal, Author Publication Date: 2019 Pagination: 140p. Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: Cash is the most liquid assets and is the measure of a corporation’s ability to pay its bills on time. Cash holding is important because it provides corporations with liquidity. To grow sales and profits, a corporation needs to build up cash reserves by ensuring that the timing of cash movements (Gill and Shah, 2012). Thus, cash is the essential ingredient that enables a business to survive and prosper. According to Cossin and Hricko (2004), cash holdings help the corporation for optimal timing of an investment and avoid the underpricing issue. However, holding excessive cash does not necessarily make good business sense. Therefore, financial managers need to understand the determinants of cash holdings in a corporation.
Adetifa (2005) defined cash holding into two categories. One is opportunity cost of interest inevitable and other is purchasing power cost of firm. According to Gill and Shah (2012), a cash holding is defined as cash in hand or readily available for investment in physical assets and to distribute to investors. The effective profit forgone on holding large cash balance is an opportunity cost to the firm. Cash holding, economic factors, and economic value added are so important to all banks and financial firms in making decisions. In some cases, banks do not hold cash because they have specific or particular investments in mind than to finance with the cash. Banks hold huge cash amounts and use the cash during economic and financial crises to buy assets from distressed and large strong firms at bargain prices. It is good to know that the advantage of holding cash becomes a bit smaller in developed markets but certainly it will still exist (Al-Nimri and Samerrai, 2015).
The various motives for cash holding will have different implications for the value of the cash holdings. Cash held due to precautionary motives will affect firm value in different way than cash held as a result of controlling managers. Pinkowitz and Willaimson (2001) analyzed the value of corporate cash holdings. The study found that the value of cash is higher when a firms investment prospects and operating cash flows are more volatile. This indicates that cash held as a result of the precautionary motive will positively impact cash value. The same study showed that with poor investment opportunities and low volatility of investment plans and cash flows, cash will be valued at a discount.
The basic purpose of hoarding cash includes a reduction in the chances of financial shocks, minimizing transaction costs, circumventing external sources of financing and allowing the investment projects to perform efficiently in the presence of financial constraints (John, 1993 and Denis and Sibilkov, 2010). Holding cash in a firms reserves acts as a buffer against future financial shocks and firms tend to accumulate cash to hope with the financial crisis likely to occur in coming years. Holding cash also minimizes transaction cost of liquidating assets or costs associated with raising external finance (Mulligan, 1997). Cash holdings are found to be decreasing with the firms size and debt ratio and increasing with its profitability, growth prospects, and dividend payout ratio (Cressy, 1996). The US firms with higher cash levels showed more growth opportunities, more volatility in their cash flows and less profitability in their productive assets (Kim et al., 1998). Gill and Shah (2012) examined the determinants of corporate cash holdings in Canada. The study found that leverage has positive and significant impact on cash holdings. Additionally, the result also showed that market-to-book ratio, cash flow, net working capital, firm size, board size, and the CEO (chief executive officer) duality significantly affect the corporate cash holdings in Canada.
The study based on the secondary data which are gathered for 20 commercial banks in Nepal for the period of 6 years from 2012/13 to 2017/18. The data for independent variables like leverage, firm size, market to book value, liquid assets, cash flow and dividend payout data are taken from the respective websites and annual reports of the selected commercial banks. The descriptive and causal comparative method are used to analyze the data.
The descriptive analysis shows that the average cash ratio is 5.873 percent. Similarly, the average net cash ratio ranges is 6.424 percent. The average leverage ratio of selected banks during the study period is 88.788 percent. Likewise, the average firm size is rupees 67.692 billion. However, the average market to book value is 4.067 times. The average ratio of liquid assets is 14.447 percent. The average cash flow is 2.144 percent. Similarly, average ratio of dividend payout is 0.816 for selected banks during the study period 2011/12 to 2017/18.
The study also concludes that there is a negative relationship between cash holdings and leverage. Similarly, the study result revealed that firm size is negatively related to cash holdings. However, the study also shows that market to book value ratio is also positive and significantly related to the cash holdings. Likewise, the study also shows that liquid assets have positive and significant relationship with cash holdings. The study also shows that cash flow has also positive relationship with cash holdings. Also, the study shows that dividend payout has positive relationship with cash holdings.
The study reveals that leverage and firm size have negative impact on cash holdings. The study also shows that market to book value ratio, liquid assets, cash flow and dividend payout have positive impact on cash holdings for Nepalese commercials banks. Similarly, the study concludes that market to book value ratio and liquid assets have significant impact on the cash holdings in the context of Nepalese commercial banks. The study also concludes that the most influencing factors that explain the changes in cash holdings of Nepalese commercial banks is liquid assets followed by market to book value ratio.
Determinants of cash holding of Nepalese commercial banks [printed text] / Usmita Dahal, Author . - 2019 . - 140p. ; GRP/Thesis + 14/B.
Languages : English
Abstract: Cash is the most liquid assets and is the measure of a corporation’s ability to pay its bills on time. Cash holding is important because it provides corporations with liquidity. To grow sales and profits, a corporation needs to build up cash reserves by ensuring that the timing of cash movements (Gill and Shah, 2012). Thus, cash is the essential ingredient that enables a business to survive and prosper. According to Cossin and Hricko (2004), cash holdings help the corporation for optimal timing of an investment and avoid the underpricing issue. However, holding excessive cash does not necessarily make good business sense. Therefore, financial managers need to understand the determinants of cash holdings in a corporation.
Adetifa (2005) defined cash holding into two categories. One is opportunity cost of interest inevitable and other is purchasing power cost of firm. According to Gill and Shah (2012), a cash holding is defined as cash in hand or readily available for investment in physical assets and to distribute to investors. The effective profit forgone on holding large cash balance is an opportunity cost to the firm. Cash holding, economic factors, and economic value added are so important to all banks and financial firms in making decisions. In some cases, banks do not hold cash because they have specific or particular investments in mind than to finance with the cash. Banks hold huge cash amounts and use the cash during economic and financial crises to buy assets from distressed and large strong firms at bargain prices. It is good to know that the advantage of holding cash becomes a bit smaller in developed markets but certainly it will still exist (Al-Nimri and Samerrai, 2015).
The various motives for cash holding will have different implications for the value of the cash holdings. Cash held due to precautionary motives will affect firm value in different way than cash held as a result of controlling managers. Pinkowitz and Willaimson (2001) analyzed the value of corporate cash holdings. The study found that the value of cash is higher when a firms investment prospects and operating cash flows are more volatile. This indicates that cash held as a result of the precautionary motive will positively impact cash value. The same study showed that with poor investment opportunities and low volatility of investment plans and cash flows, cash will be valued at a discount.
The basic purpose of hoarding cash includes a reduction in the chances of financial shocks, minimizing transaction costs, circumventing external sources of financing and allowing the investment projects to perform efficiently in the presence of financial constraints (John, 1993 and Denis and Sibilkov, 2010). Holding cash in a firms reserves acts as a buffer against future financial shocks and firms tend to accumulate cash to hope with the financial crisis likely to occur in coming years. Holding cash also minimizes transaction cost of liquidating assets or costs associated with raising external finance (Mulligan, 1997). Cash holdings are found to be decreasing with the firms size and debt ratio and increasing with its profitability, growth prospects, and dividend payout ratio (Cressy, 1996). The US firms with higher cash levels showed more growth opportunities, more volatility in their cash flows and less profitability in their productive assets (Kim et al., 1998). Gill and Shah (2012) examined the determinants of corporate cash holdings in Canada. The study found that leverage has positive and significant impact on cash holdings. Additionally, the result also showed that market-to-book ratio, cash flow, net working capital, firm size, board size, and the CEO (chief executive officer) duality significantly affect the corporate cash holdings in Canada.
The study based on the secondary data which are gathered for 20 commercial banks in Nepal for the period of 6 years from 2012/13 to 2017/18. The data for independent variables like leverage, firm size, market to book value, liquid assets, cash flow and dividend payout data are taken from the respective websites and annual reports of the selected commercial banks. The descriptive and causal comparative method are used to analyze the data.
The descriptive analysis shows that the average cash ratio is 5.873 percent. Similarly, the average net cash ratio ranges is 6.424 percent. The average leverage ratio of selected banks during the study period is 88.788 percent. Likewise, the average firm size is rupees 67.692 billion. However, the average market to book value is 4.067 times. The average ratio of liquid assets is 14.447 percent. The average cash flow is 2.144 percent. Similarly, average ratio of dividend payout is 0.816 for selected banks during the study period 2011/12 to 2017/18.
The study also concludes that there is a negative relationship between cash holdings and leverage. Similarly, the study result revealed that firm size is negatively related to cash holdings. However, the study also shows that market to book value ratio is also positive and significantly related to the cash holdings. Likewise, the study also shows that liquid assets have positive and significant relationship with cash holdings. The study also shows that cash flow has also positive relationship with cash holdings. Also, the study shows that dividend payout has positive relationship with cash holdings.
The study reveals that leverage and firm size have negative impact on cash holdings. The study also shows that market to book value ratio, liquid assets, cash flow and dividend payout have positive impact on cash holdings for Nepalese commercials banks. Similarly, the study concludes that market to book value ratio and liquid assets have significant impact on the cash holdings in the context of Nepalese commercial banks. The study also concludes that the most influencing factors that explain the changes in cash holdings of Nepalese commercial banks is liquid assets followed by market to book value ratio.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 642/D USM Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available 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 Determinants of financial stability in Nepalese commercial banks / Deena Bhattrai
Title : Determinants of financial stability in Nepalese commercial banks Material Type: printed text Authors: Deena Bhattrai, Author Publication Date: 2019 Pagination: 118p. Size: GRP/Thesis Accompanying material: 14/B Languages : English Abstract: A financial system is in a range of stability when it dissipates financial imbalances that arise endogenously or as a result of significant adverse and unforeseen events. In stability, the system will absorb the shocks primarily via self-corrective mechanisms, preventing adverse events from having a disruptive effect on the real economy or on other financial systems. Financial stability is paramount for economic growth, as most transactions in the real economy are made through the financial system. Financial stability is a system that can be characterized as stability in the absence of excessive volatility and stress or crises. A common measure of stability at the level of individual institutions is the z-score. The popularity of the z-score stems from the fact that it has a clear (negative) relationship to the probability of a financial institution’s insolvency, that is, the probability that the value of its assets becomes lower than the value of its debt. A higher z-score therefore implies a lower probability of insolvency.
The study attempts to examine the determinants of financial stability in the Nepalese commercial banks. Financial stability measured in terms of Z-score return on assets and Z-score return on equity are the dependent variables. The independent variables are bank size, asset quality, income diversity, operating expenses, gross domestic product and inflation. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability in Nepalese commercial banks. The findings of the paper are largely original in the area of financial stability of Nepalese banking.
The result shows that average Z-score of return on assets is highest for NABIL (4.37 ) and lowest for MBL(1.82), average Z-score of return on equity is highest for NABIL (4.27) and lowest for MBL (1.75), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average asset quality is highest for ADBL (5.43 percent) and lowest for SBI (0.26 percent), average income diversity is highest for NBBL (3.08 percent) and lowest for RBBL (-4.55 percent) and average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion).
The descriptive statistics shows that the Z-score return on assets ranges from a minimum of 0.38 percent to a maximum of 6.29 percent to an average of 2.86 percent. Similarly, the Z-score return on equity ranges from minimum of 0.23 percent to a maximum of 8.38 percent leading to an average of 2.67 percent. Bank size varies from a minimum of 21.30 to a maximum of 26.01 leading to an average of 24.81. Similarly, asset quality varies from minimum of 0.07 percent to a maximum of 8.98 percent leading to an average of 1.81 percent. Income diversity ranges from a minimum of -5.81 percent to a maximum of 0.57 percent leading to an average of 0.28 percent. Operating expenses varies from a minimum of 18.44 to a maximum of 22.15 leading to an average of 20.73. Similarly, the gross domestic product ranges from minimum of 0.20 percent to a maximum of 7.40 percent leading to an average of 4.41 percent. Likewise, inflation varies from 4.10 percent to a maximum of 9.90 percent leading to an average of 7.57percent.
The result shows bank size has a positive relationship with Z-score return on assets. It indicates that higher the bank size, the bank would be more stable. Similarly, asset quality has a positive relationship with Z-score return on assets. It indicates that increase in asset quality leads bank to be more stable. The results also show that income diversity has a positive relationship with Z-score return on assets. It indicates that higher the income diversity, higher would be the bank stability. Similarly, operating expenses has a positive and significant relationship with Z-score return on assets. It reveals that higher the operating expenses, the bank would be more stable. Likewise, gross domestic product has a positive relationship with Z-score return on assets. It indicates that higher the gross domestic product, the bank would be more stable. However, inflation rate has a negative relationship with Z-score return on assets. It reveals that higher the inflation rate lower would be the bank stability.
The result also reveals that bank size has a positive and significant relationship with Z-score return on equity. It indicates that higher the bank size, the bank would be more stable. Similarly, asset quality has a negative relationship with Z-score return on equity which indicates that higher the asset quality the bank would be less stable. However, income diversity has a positive relationship with Z-score return on equity. It reveals that higher the income diversity, higher would be the bank stability. Operating expenses has a positive relationship with Z-return on equity. It indicates that higher the operating expenses, higher would be the bank stability. However, gross domestic product has a negative and significant relationship with Z-return on equity. It indicates that higher gross domestic product, lower would be the bank stability. The result also shows that inflation rate has a positive relationship with Z-return on equity. It reveals that higher the inflation rate, higher would be the bank stability.
The regression results of Z-score return on assets shows that inflation has negative impact on financial stability. This indicates higher the inflation lower would be the stability. However, bank size has positive impact on financial stability. This indicates higher the bank size higher would be the stability. Likewise, asset quality and income diversity have positive impact on stability. This indicates higher the asset quality and income diversity, higher would be the stability. Similarly, operating expenses has positive and significant impact on level of stability. This indicates higher the operating expenses higher would be the stability. Likewise, gross domestic product has positive impact on financial stability. This indicates that higher the gross domestic product, higher would be the stability. The result also shows that the beta coefficients for operating expenses is significant at 1 percent level of significance. The regression results of Z-score return on equity shows that there is negative and significant impact of gross domestic product on financial stability. This indicates higher the gross domestic product lower would be the stability. Similarly, there is negative impact of asset quality on financial stability. This indicates higher the asset quality lower would be the stability. However, the study indicates that there is positive and significant impact of bank size and inflation on financial stability. This indicates higher the bank size and inflation higher would be the stability. Similarly, there is positive impact of income diversity on financial stability. This indicates higher the income diversity, higher would be the stability. Likewise, there is positive impact of operating expenses on financial stability. This indicates that higher the operating expenses, higher would be the stability. The result also shows that the beta coefficients for bank size, gross domestic product and inflation are significant at 5 percent level of significance.
Determinants of financial stability in Nepalese commercial banks [printed text] / Deena Bhattrai, Author . - 2019 . - 118p. ; GRP/Thesis + 14/B.
Languages : English
Abstract: A financial system is in a range of stability when it dissipates financial imbalances that arise endogenously or as a result of significant adverse and unforeseen events. In stability, the system will absorb the shocks primarily via self-corrective mechanisms, preventing adverse events from having a disruptive effect on the real economy or on other financial systems. Financial stability is paramount for economic growth, as most transactions in the real economy are made through the financial system. Financial stability is a system that can be characterized as stability in the absence of excessive volatility and stress or crises. A common measure of stability at the level of individual institutions is the z-score. The popularity of the z-score stems from the fact that it has a clear (negative) relationship to the probability of a financial institution’s insolvency, that is, the probability that the value of its assets becomes lower than the value of its debt. A higher z-score therefore implies a lower probability of insolvency.
The study attempts to examine the determinants of financial stability in the Nepalese commercial banks. Financial stability measured in terms of Z-score return on assets and Z-score return on equity are the dependent variables. The independent variables are bank size, asset quality, income diversity, operating expenses, gross domestic product and inflation. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability in Nepalese commercial banks. The findings of the paper are largely original in the area of financial stability of Nepalese banking.
The result shows that average Z-score of return on assets is highest for NABIL (4.37 ) and lowest for MBL(1.82), average Z-score of return on equity is highest for NABIL (4.27) and lowest for MBL (1.75), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average asset quality is highest for ADBL (5.43 percent) and lowest for SBI (0.26 percent), average income diversity is highest for NBBL (3.08 percent) and lowest for RBBL (-4.55 percent) and average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion).
The descriptive statistics shows that the Z-score return on assets ranges from a minimum of 0.38 percent to a maximum of 6.29 percent to an average of 2.86 percent. Similarly, the Z-score return on equity ranges from minimum of 0.23 percent to a maximum of 8.38 percent leading to an average of 2.67 percent. Bank size varies from a minimum of 21.30 to a maximum of 26.01 leading to an average of 24.81. Similarly, asset quality varies from minimum of 0.07 percent to a maximum of 8.98 percent leading to an average of 1.81 percent. Income diversity ranges from a minimum of -5.81 percent to a maximum of 0.57 percent leading to an average of 0.28 percent. Operating expenses varies from a minimum of 18.44 to a maximum of 22.15 leading to an average of 20.73. Similarly, the gross domestic product ranges from minimum of 0.20 percent to a maximum of 7.40 percent leading to an average of 4.41 percent. Likewise, inflation varies from 4.10 percent to a maximum of 9.90 percent leading to an average of 7.57percent.
The result shows bank size has a positive relationship with Z-score return on assets. It indicates that higher the bank size, the bank would be more stable. Similarly, asset quality has a positive relationship with Z-score return on assets. It indicates that increase in asset quality leads bank to be more stable. The results also show that income diversity has a positive relationship with Z-score return on assets. It indicates that higher the income diversity, higher would be the bank stability. Similarly, operating expenses has a positive and significant relationship with Z-score return on assets. It reveals that higher the operating expenses, the bank would be more stable. Likewise, gross domestic product has a positive relationship with Z-score return on assets. It indicates that higher the gross domestic product, the bank would be more stable. However, inflation rate has a negative relationship with Z-score return on assets. It reveals that higher the inflation rate lower would be the bank stability.
The result also reveals that bank size has a positive and significant relationship with Z-score return on equity. It indicates that higher the bank size, the bank would be more stable. Similarly, asset quality has a negative relationship with Z-score return on equity which indicates that higher the asset quality the bank would be less stable. However, income diversity has a positive relationship with Z-score return on equity. It reveals that higher the income diversity, higher would be the bank stability. Operating expenses has a positive relationship with Z-return on equity. It indicates that higher the operating expenses, higher would be the bank stability. However, gross domestic product has a negative and significant relationship with Z-return on equity. It indicates that higher gross domestic product, lower would be the bank stability. The result also shows that inflation rate has a positive relationship with Z-return on equity. It reveals that higher the inflation rate, higher would be the bank stability.
The regression results of Z-score return on assets shows that inflation has negative impact on financial stability. This indicates higher the inflation lower would be the stability. However, bank size has positive impact on financial stability. This indicates higher the bank size higher would be the stability. Likewise, asset quality and income diversity have positive impact on stability. This indicates higher the asset quality and income diversity, higher would be the stability. Similarly, operating expenses has positive and significant impact on level of stability. This indicates higher the operating expenses higher would be the stability. Likewise, gross domestic product has positive impact on financial stability. This indicates that higher the gross domestic product, higher would be the stability. The result also shows that the beta coefficients for operating expenses is significant at 1 percent level of significance. The regression results of Z-score return on equity shows that there is negative and significant impact of gross domestic product on financial stability. This indicates higher the gross domestic product lower would be the stability. Similarly, there is negative impact of asset quality on financial stability. This indicates higher the asset quality lower would be the stability. However, the study indicates that there is positive and significant impact of bank size and inflation on financial stability. This indicates higher the bank size and inflation higher would be the stability. Similarly, there is positive impact of income diversity on financial stability. This indicates higher the income diversity, higher would be the stability. Likewise, there is positive impact of operating expenses on financial stability. This indicates that higher the operating expenses, higher would be the stability. The result also shows that the beta coefficients for bank size, gross domestic product and inflation are significant at 5 percent level of significance.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 605/D DEE Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of job satisfaction and employee turnover in nepalese commercial banks / Bibek deo
Title : Determinants of job satisfaction and employee turnover in nepalese commercial banks Material Type: printed text Authors: Bibek deo, Author Publication Date: 2019 Pagination: 115p. Size: GRP/Thesis Accompanying material: 15th Languages : English Abstract: Employee turnover is expensive to any company in a variety of ways. Understanding the need of individual employees is the key to planning employee retention strategies. In order to build suitable strategies that could reduce the employee turnover rate and increase the job satisfaction level among the employees, it is very necessary to know the factors determining the job satisfaction and employee turnover. Employee Retention being one of the most complex challenges faced by banking industry. Identifying, hiring and training employees is one thing but finding and keeping valuable and talented employees is another thing. From the day an employee joins an organization; they are groomed and trained to make them fit for corporate world. So, when an employee leaves, the organization is completely at loss in terms of time and money invested. Hiring and training new employee means restarting the entire process all over again
The major objective of the study is to examine the factors determining job satisfaction and employee turnover in Nepalese commercial banks. The specific objectives of the study are: to analyze the perception of employees regarding existing organizational factors on job satisfaction and employee turnover in Nepalese commercial banks, to examine the relationship of organizational culture, working condition, promotion, salary & job insecurity in Nepalese commercial banks, to determine the impact of organizational culture, working condition, promotion, salary & job insecurity on job satisfaction and employee commitment in Nepalese commercial banks, to find out the most important factor affecting job satisfaction and employee turnover in Nepalese commercial banks.
This study is based on primary source of data. This study has employed descriptive and causal comparative research designs to deal with issues associated with the factors determining job satisfaction and employee turnover in Nepalese commercial banks. In order to achieve the objectives, questionnaire was prepared and distributed through Google doc and questionnaire. A total of 141 questionnaires were distributed and collected from 25 Nepalese commercial banks.
The study shows that the organization culture, working condition, promotion and salary are positively correlated with job satisfaction. It indicates that if commercial bank makes an improvement on these factors then it would increase the job satisfaction level of employee. However, job insecurity is negatively correlated with job satisfaction level. It indicates that if the commercial bank employees feel insecure then their job satisfaction level would gradually decrease. Similarly, the result reveals that the organization culture, working condition, promotion and salary are negatively correlated with employee turnover. It indicates that improvement on these factors by commercial bank would decrease the employee turnover rate in commercial bank of Nepal. However, job insecurity is positively correlated with job satisfaction level. It indicates that if the commercial bank employees feel insecure then the turnover rate will gradually increase.
The study also concludes that organization culture, working condition, promotion and salary have positive impact on job satisfaction. However, job insecurity has negative impact on job satisfaction. Similarly, organization culture, working condition, promotion and salary have negative impact on employee turnover. However, job insecurity has positive impact on employee turnover rate. Similarly, the study concludes that the promotion and job insecurity are the most influencing factor that influences job satisfaction and employee turnover rate in Nepalese commercial banks.
Determinants of job satisfaction and employee turnover in nepalese commercial banks [printed text] / Bibek deo, Author . - 2019 . - 115p. ; GRP/Thesis + 15th.
Languages : English
Abstract: Employee turnover is expensive to any company in a variety of ways. Understanding the need of individual employees is the key to planning employee retention strategies. In order to build suitable strategies that could reduce the employee turnover rate and increase the job satisfaction level among the employees, it is very necessary to know the factors determining the job satisfaction and employee turnover. Employee Retention being one of the most complex challenges faced by banking industry. Identifying, hiring and training employees is one thing but finding and keeping valuable and talented employees is another thing. From the day an employee joins an organization; they are groomed and trained to make them fit for corporate world. So, when an employee leaves, the organization is completely at loss in terms of time and money invested. Hiring and training new employee means restarting the entire process all over again
The major objective of the study is to examine the factors determining job satisfaction and employee turnover in Nepalese commercial banks. The specific objectives of the study are: to analyze the perception of employees regarding existing organizational factors on job satisfaction and employee turnover in Nepalese commercial banks, to examine the relationship of organizational culture, working condition, promotion, salary & job insecurity in Nepalese commercial banks, to determine the impact of organizational culture, working condition, promotion, salary & job insecurity on job satisfaction and employee commitment in Nepalese commercial banks, to find out the most important factor affecting job satisfaction and employee turnover in Nepalese commercial banks.
This study is based on primary source of data. This study has employed descriptive and causal comparative research designs to deal with issues associated with the factors determining job satisfaction and employee turnover in Nepalese commercial banks. In order to achieve the objectives, questionnaire was prepared and distributed through Google doc and questionnaire. A total of 141 questionnaires were distributed and collected from 25 Nepalese commercial banks.
The study shows that the organization culture, working condition, promotion and salary are positively correlated with job satisfaction. It indicates that if commercial bank makes an improvement on these factors then it would increase the job satisfaction level of employee. However, job insecurity is negatively correlated with job satisfaction level. It indicates that if the commercial bank employees feel insecure then their job satisfaction level would gradually decrease. Similarly, the result reveals that the organization culture, working condition, promotion and salary are negatively correlated with employee turnover. It indicates that improvement on these factors by commercial bank would decrease the employee turnover rate in commercial bank of Nepal. However, job insecurity is positively correlated with job satisfaction level. It indicates that if the commercial bank employees feel insecure then the turnover rate will gradually increase.
The study also concludes that organization culture, working condition, promotion and salary have positive impact on job satisfaction. However, job insecurity has negative impact on job satisfaction. Similarly, organization culture, working condition, promotion and salary have negative impact on employee turnover. However, job insecurity has positive impact on employee turnover rate. Similarly, the study concludes that the promotion and job insecurity are the most influencing factor that influences job satisfaction and employee turnover rate in Nepalese commercial banks.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 684/D BIB Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Determinants of lending interest rate in nepalese commercial banks / Anita jaishi
Title : Determinants of lending interest rate in nepalese commercial banks Material Type: printed text Authors: Anita jaishi, Author Pagination: 108p. Size: GRP/Thesis Accompanying material: 2nd/Gmba Languages : English Abstract: Banking industry in Nepal is still growing and it should ensure that effective strategies are put in place to minimize lending interest rate. Lending interest rate is a burning issue in Nepalese banking sector. Moreover, the interest rates charged on lending by commercial banks have been a sensitive and recurring policy issue in Nepal and one which requires an objective examination of all the factors that influence commercial banks’ lending interest rates. The lending interest rate is the percentage of the loan amount that the lender charges to lend money. When banks lend money to customers, interest is charged on it for a number of reasons, including value preservation, compensation for risk, and profits among others.
The study attempts to examine the determinants of lending interest rate of the Nepalese commercial banks. Lending interest rate measured by interest income from loans and advances as a fraction of total loans and advances is the dependent variable. Bank size, liquidity ratio, cash reserve ratio, operating expenses, inflation, and return on assets are the independent variables. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of lending rate determinants of Nepalese banking.
The result shows that average lending rates is highest for ADBL (13.23%) and lowest for SCBL (9.1%), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average liquidity is highest for ADBL (89.73) and lowest for SCBL (57.43), average cash reserve ratio is highest for SRBL (31.58%) and lowest for HBL (7.49%) and average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion), the inflation is highest in the year of 2012/13 and 2015/16 ( 9.9%) and lowest in the year of 2017/18 (4.1%).lending interest rate ranges from a minimum of 6.80 percent to the maximum of 15.470 percent leading to the average of 10.391 percent. However, the bank size ranges from minimum of 22.692 billion to maximum of 26.008billion leading to an average of 24.870 billion. The liquidity ratio of selected banks during the study period is noticed to be with a minimum of 46.082 percent and a maximum of 96.326 percent with an average of 77.289 percent. Likewise, cash reserve ratio revealed a minimum of 6.00percent to maximum of 36.650 percent with an average of 15,241 percent. The average of operating expenses of selected banks during the study period is noticed to be 20.726 billion with minimum of 18.436 billion and maximum of 22.151billion. Similarly, the average of inflation during the study period is noticed to be 7.571 percent with a minimum of 4.1 percent and a maximum of 7.571 percent. And the Return on assets ranges from minimum of 0.150 percent to maximum of 4.162 percent, leading to an average of 1.768 percent.
The result shows that the bank size has a negative and significant relationship with the lending rate It indicates that higher the bank size, the lending interest rate would be decrease. Similarly, liquidity ratio has a positive relationship with the lending interest rate. It indicates that increase in liquidity ratio leads increase in the lending interest rates of bank. The results also show that liquidity ratio has a positive relationship with lending interest rate. It indicates that higher the liquidity ratio, higher would be the lending interest rate. Similarly, cash reserve ratio has a positive and significant relationship with lending interest rates. It reveals that higher the cash reserve ratio, the banks’ lending interest rate would be more. Likewise, operating expenses has a positive relationship with lending interest rate. It indicates that higher the operating expenses, the bank lending interest rates would also be higher. However, inflation rate has a positive relationship with lending interest rates. It reveals that higher the inflation rate higher would be the bank lending interest rates. Similarly, return on assets has a positive relationship with the lending interest rate. It indicates that increase in return on assets leads increase in the lending interest rates of bank. The results also show that return on assets has a positive relationship with lending interest rate. It indicates that higher the return on assets, higher would be the lending interest rate.
The regression results of Z-score return on assets shows that the beta coefficients for bank size are negative and significant at (1% level of significance) with lending interest rate. This indicates that bank size has negative impact on lending rate of bank. The finding is similar to the findings of (Georgievska et al., 2010), Okoye and Ricahrd (2013), Malede (2014)). Likewise, the results also show that the beta coefficients for liquidity ratio are positive and significant at (5% level of significance) with lending interest rates. It shows that liquidity ratio has positive impact on lending interest rate. This finding is consistent with the findings of (Adoah, 2015), (Ali et al., 2016). Similarly, the result shows that the beta coefficients for cash reserve ratio are positive and significant at (1% level of significance) with lending interest rates. It shows that cash reserve ratio has positive impact on lending interest rate. This finding is consistent with the findings of Olumuyiwa et al. (2012), Punita and Somaiya (2006). Likewise, the beta coefficients for operating expenses are positive and significant at (5% level of significance) with lending interest rate. It shows that for operating expenses has positive impact on lending interest rate. This finding argues with the findings of (Bawumia et al. 2005), (Bhattarai, 2015), and (Mbao et al. 2014). Similarly, the beta coefficients for inflation are positive with lending interest rate. It shows that inflation has positive impact on lending interest rate. This finding is consistent with the findings of Adoah (2015), Boyd and Champ (2004), Aboagye et al. (2005) and Bawumia et al (2005). Similarly, the result shows that the beta coefficients for return on assets are positive with lending interest rates. It shows that return on assets has positive impact on lending interest rate. This finding is consistent with the findings of Bhattarai (2015). The result also shows that the beta coefficients for bank size and cash reserve ratio are significant at (1% level of significance). And also the result shows that the liquidity ratio, operating expenses is significant at (5% level of significance) with lending interest rate.
Determinants of lending interest rate in nepalese commercial banks [printed text] / Anita jaishi, Author . - [s.d.] . - 108p. ; GRP/Thesis + 2nd/Gmba.
Languages : English
Abstract: Banking industry in Nepal is still growing and it should ensure that effective strategies are put in place to minimize lending interest rate. Lending interest rate is a burning issue in Nepalese banking sector. Moreover, the interest rates charged on lending by commercial banks have been a sensitive and recurring policy issue in Nepal and one which requires an objective examination of all the factors that influence commercial banks’ lending interest rates. The lending interest rate is the percentage of the loan amount that the lender charges to lend money. When banks lend money to customers, interest is charged on it for a number of reasons, including value preservation, compensation for risk, and profits among others.
The study attempts to examine the determinants of lending interest rate of the Nepalese commercial banks. Lending interest rate measured by interest income from loans and advances as a fraction of total loans and advances is the dependent variable. Bank size, liquidity ratio, cash reserve ratio, operating expenses, inflation, and return on assets are the independent variables. The study is based on secondary data of 18 commercial banks with 126 observations for the period of 2011/12 to 2017/18. The secondary data and information have been collected from annual reports of selected commercial banks. The regression models are estimated to test the significance and impact of different variables on financial stability of Nepalese commercial banks. The findings of the paper are largely original in the area of lending rate determinants of Nepalese banking.
The result shows that average lending rates is highest for ADBL (13.23%) and lowest for SCBL (9.1%), average bank size is highest for RBBL (Rs.142.91 billion) and lowest for NBBL(Rs.38.73 billion), average liquidity is highest for ADBL (89.73) and lowest for SCBL (57.43), average cash reserve ratio is highest for SRBL (31.58%) and lowest for HBL (7.49%) and average operating expenses is highest for ADBL (3.62 billion) and lowest for NMB (0.39 billion), the inflation is highest in the year of 2012/13 and 2015/16 ( 9.9%) and lowest in the year of 2017/18 (4.1%).lending interest rate ranges from a minimum of 6.80 percent to the maximum of 15.470 percent leading to the average of 10.391 percent. However, the bank size ranges from minimum of 22.692 billion to maximum of 26.008billion leading to an average of 24.870 billion. The liquidity ratio of selected banks during the study period is noticed to be with a minimum of 46.082 percent and a maximum of 96.326 percent with an average of 77.289 percent. Likewise, cash reserve ratio revealed a minimum of 6.00percent to maximum of 36.650 percent with an average of 15,241 percent. The average of operating expenses of selected banks during the study period is noticed to be 20.726 billion with minimum of 18.436 billion and maximum of 22.151billion. Similarly, the average of inflation during the study period is noticed to be 7.571 percent with a minimum of 4.1 percent and a maximum of 7.571 percent. And the Return on assets ranges from minimum of 0.150 percent to maximum of 4.162 percent, leading to an average of 1.768 percent.
The result shows that the bank size has a negative and significant relationship with the lending rate It indicates that higher the bank size, the lending interest rate would be decrease. Similarly, liquidity ratio has a positive relationship with the lending interest rate. It indicates that increase in liquidity ratio leads increase in the lending interest rates of bank. The results also show that liquidity ratio has a positive relationship with lending interest rate. It indicates that higher the liquidity ratio, higher would be the lending interest rate. Similarly, cash reserve ratio has a positive and significant relationship with lending interest rates. It reveals that higher the cash reserve ratio, the banks’ lending interest rate would be more. Likewise, operating expenses has a positive relationship with lending interest rate. It indicates that higher the operating expenses, the bank lending interest rates would also be higher. However, inflation rate has a positive relationship with lending interest rates. It reveals that higher the inflation rate higher would be the bank lending interest rates. Similarly, return on assets has a positive relationship with the lending interest rate. It indicates that increase in return on assets leads increase in the lending interest rates of bank. The results also show that return on assets has a positive relationship with lending interest rate. It indicates that higher the return on assets, higher would be the lending interest rate.
The regression results of Z-score return on assets shows that the beta coefficients for bank size are negative and significant at (1% level of significance) with lending interest rate. This indicates that bank size has negative impact on lending rate of bank. The finding is similar to the findings of (Georgievska et al., 2010), Okoye and Ricahrd (2013), Malede (2014)). Likewise, the results also show that the beta coefficients for liquidity ratio are positive and significant at (5% level of significance) with lending interest rates. It shows that liquidity ratio has positive impact on lending interest rate. This finding is consistent with the findings of (Adoah, 2015), (Ali et al., 2016). Similarly, the result shows that the beta coefficients for cash reserve ratio are positive and significant at (1% level of significance) with lending interest rates. It shows that cash reserve ratio has positive impact on lending interest rate. This finding is consistent with the findings of Olumuyiwa et al. (2012), Punita and Somaiya (2006). Likewise, the beta coefficients for operating expenses are positive and significant at (5% level of significance) with lending interest rate. It shows that for operating expenses has positive impact on lending interest rate. This finding argues with the findings of (Bawumia et al. 2005), (Bhattarai, 2015), and (Mbao et al. 2014). Similarly, the beta coefficients for inflation are positive with lending interest rate. It shows that inflation has positive impact on lending interest rate. This finding is consistent with the findings of Adoah (2015), Boyd and Champ (2004), Aboagye et al. (2005) and Bawumia et al (2005). Similarly, the result shows that the beta coefficients for return on assets are positive with lending interest rates. It shows that return on assets has positive impact on lending interest rate. This finding is consistent with the findings of Bhattarai (2015). The result also shows that the beta coefficients for bank size and cash reserve ratio are significant at (1% level of significance). And also the result shows that the liquidity ratio, operating expenses is significant at (5% level of significance) with lending interest rate.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 691/D ANI Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available