A comparison of financial performance of commercial banks: A case study of Nepal

Jha, Suvita

doi:10.5897/ajbm11.3073

Cited by 45 publications

(28 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The highest correlation of ROA is found with interest spread (0.324) and then EQlevel (0.300). A study by Jha and Hui (2012) also revealed that CAR has a substantial impact on ROE, and ROE has been influenced by CAR, interest expenses to loans, and NIM.…”

Section: Relationship Between Nim and Independent Variablesmentioning

confidence: 99%

“…In Nepal, based on banks' financial characteristics, Jha and Hui (2012) examined the financial performance of various ownership-structured commercial banks and identified the performance factors that the financial ratios exposed. Samples for the study were eighteen commercial banks, including public sector banks, non-joint venture private banks, and joint venture banks.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Existence of Joint Venture Banks and their Impacts on the Performance of Non-Joint Venture Commercial Banks in Nepal

Chapagain

Yadhav

Baral

2023

INT. J. Multi. Res.

View full text Add to dashboard Cite

This paper aims to examine the effect of the existence of joint venture (JV) banks on the performance of non-joint venture (NJV) commercial banks of Nepal. The study is based on secondary data, where the data have been collected from fourteen sampled banks' annual reports, Ministry of Finance publications, and World Bank publications. Seven years of data from Fiscal Year 2013/14 to 2019/20 of cross-section units (banks) established before 2008 have been taken for the study. Descriptive analysis, correlation, and regression have been used in the study. The result depicts that JV banks’ existence in Nepal significantly impacts return on assets and credit risk levels but does not show an impact on the net interest margin (NIM) of NJV commercial banks. The regression result shows that loan deposit ratio, capital adequacy ratio (CAR), bank’s equity level, and non-performing loan (NPL) of JV banks substantially impact the NIM of NJV banks. Likewise, the interest spread rate and NPL of JV banks significantly affect the ROA of NJV commercial banks. Similarly, interest spread, CAR, and foreign ownership ratio significantly impact the credit risk level of NJV commercial banks in Nepal. Likewise, the result further shows that JV banks have been earning relatively higher non-interest income, which positively reflected on the ROA of banks. Additionally, JV banks have been booking low-quality credit portfolios at a lower interest rate.

show abstract

Section: Relationship Between Nim and Independent Variablesmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Existence of Joint Venture Banks and their Impacts on the Performance of Non-Joint Venture Commercial Banks in Nepal

Chapagain

Yadhav

Baral

2023

INT. J. Multi. Res.

View full text Add to dashboard Cite

show abstract

“…Institutionally, the determination of the LPD's health level has been determined using the CAMEL method. The CAMEL approach can be used to evaluate the performance and financial health of banks (Bansal & Mohanty, 2013;Majumder et al, 2017;Varghese, 2016), the level of bank profitability (Bustamam, 2017), examine the impact of the independent variables of the CAMEL model which include capital adequacy, asset quality, management, income, and liquidity on bank performance (Liu & Pariyaprasert, 2014;Tripathi et al, 2014), to investigate the financial performance of public and private sector banks (Khan, 2018), to compare the performance of a bank before and after the implementation of a policy (Anwar, 2016), to find the relative weights that are important in all factors in CAMEL and to inform the best ratio to always be adopted by bank regulators in evaluating bank efficiency (Dzeawuni, 2008), identifying the determinants of performance exposed by bank financial ratios (Suvita & Xiaofeng, 2012), assessing the level of satisfaction and customer perceptions of bank services (Desta, 2016) and the level of efficiency of a bank's management (Hosen & Muhari, 2013). In addition to health issues, the risk level factor is an important thing to know in the economic crisis due to the recent COVID-19 pandemic (Susanti et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

A Health Level and Risk Rating Monitoring System of Village Credit Institutions

Karma¹,

Sulastra²,

Dewi³

2022

irjmis

View full text Add to dashboard Cite

As a financial institution that is very vulnerable to negative issues, Bali Governor Regulation No 44/2017, which regulates the management of an LPD (Village Credit Institution) directs that LPDs be managed carefully. Performance indicators that must be considered are the level of health and risk rating of the LPD, which are determined by a number of factors/components related to the financial condition and procedures for managing the LPD. The procedure for determining it is clear, but requires careful calculations and seems difficult for those who do not understand it. Knowledge of the level of health and risk rating will make it easier to find alternative solutions when the LPD has problems. Building a health level and risk rating monitoring system is a solution. The system is built using the Waterfall method with an object-oriented system approach. This system will greatly assist the manager and the supervisory team to maintain good LPD performance, and can quickly anticipate situations that cause the LPD's performance to decline, which is shown from the factors/components of the health level monitoring results and risk ratings by this system.

show abstract

“…Banks are key players in the financial sector which is the backbone of any economy (Chockalingam, Dabadghao, & Soetekouw, 2018;Jha & Hui, 2012). Banks as financial intermediaries transfer financial resources across time and space, that is, they connect, in every financial system, surplus-spending units to deficit-spending units through the creation of financial assets and liabilities (Ariccia & Marquez, 2004;Scannella, 2012).…”

Section: Introductionmentioning

confidence: 99%

“…Banks as financial intermediaries transfer financial resources across time and space, that is, they connect, in every financial system, surplus-spending units to deficit-spending units through the creation of financial assets and liabilities (Ariccia & Marquez, 2004;Scannella, 2012). They are keyed to every developmental activity in the developing economies by serving as a major source of finance for the majority of firms and main depository of economic savings (Arun & Turner, 2004).The fact that banks hold large share of economic activities of any country (Jha & Hui, 2012) is a sufficient rationale for making their activities sustainable via ensuring their financial soundness.…”

Section: Introductionmentioning

confidence: 99%

Bank-Specific Variables and Banks’ Financial Soundness: Empirical Evidence from Nigeria

Salami

Uthman

Sanni

2021

Zagreb International Review of Economics and Business

View full text Add to dashboard Cite

This study examines the explanatory power of capital adequacy, asset quality, management soundness, earnings quality, liquidity and sensitivity to market risk (CAMELS) framework as well as a number of other variables on the financial soundness (measured by regulatory capital adequacy ratios) of banks in Nigeria. The findings, using ordinary least squared (OLS) regression subsequent to the establishment of no panel effects among the sampled banks, reveal the significant explanatory potentials of these bank-specific variables though some give a reversal of their prior expectations. Apart from reawakening the investors’ and depositors’ interest, the findings further have policy implications on the regulation and operation of these financial institutions. The study breaks new grounds in the measurement of capital adequacy using gross revenue ratio and leverage ratio, asset quality using income statement impairment charges for loan losses, and in the inclusion of the sensitivity to market risk most especially in the Nigerian context.

show abstract

A comparison of financial performance of commercial banks: A case study of Nepal

Cited by 45 publications

References 13 publications

Existence of Joint Venture Banks and their Impacts on the Performance of Non-Joint Venture Commercial Banks in Nepal

Existence of Joint Venture Banks and their Impacts on the Performance of Non-Joint Venture Commercial Banks in Nepal

A Health Level and Risk Rating Monitoring System of Village Credit Institutions

Bank-Specific Variables and Banks’ Financial Soundness: Empirical Evidence from Nigeria

Contact Info

Product

Resources

About