Bank profitability in the Eurasian Economic Union: Do funding liquidity and systemic importance matter?

Pak, Olga

doi:10.1016/j.najef.2020.101265

Cited by 21 publications

(14 citation statements)

References 36 publications

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“…As a result, the negative influence of CAR is more pronounced for unlisted banks. Pak (2020) reported that bank capital is positively correlated with ROA and NIM models in her study covering the banking industries of Russia, Belarus and Kazakhstan.…”

Section: Regression Resultsmentioning

confidence: 97%

Bank Age and Financial Performance: Is the Relationship Linear or Nonlinear? Evidence From Listed and Unlisted Commercial Banks in China

Işık

Ersoy

2022

Finans Ekonomi Ve Sosyal Araştırmalar Dergisi

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This study empirically investigates the impact of bank age on bank financial performance using a sample of 50 commercial banks from Chinese banking industry over the period 2006-2019. In this study, we employ an unbalanced panel data set and PCSE panel estimation procedure. After controlling for the bank-specific, the industry-specific, and the macroeconomic indicators, our estimation results suggest that there exists a positive and linear relationship between bank age and profitability indicators in ROA and ROE models for listed banks. However, the estimated coefficients for bank age and its square are found to be statistically significant in all models (i.e. ROA, ROE and NIM) for unlisted banks. These results suggest that age-profitability linkage follows the U-shaped pattern for unlisted banks.

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Section: Regression Resultsmentioning

confidence: 97%

Bank Age and Financial Performance: Is the Relationship Linear or Nonlinear? Evidence From Listed and Unlisted Commercial Banks in China

Işık

Ersoy

2022

Finans Ekonomi Ve Sosyal Araştırmalar Dergisi

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“…The endogeneity issue is inherent to our study due to the interrelationship between liquidity creation and profitability. The same is well documented in the existing studies by Pak (2020) and Tran et al (2016). In order to minimize the impact of endogeneity, we have applied the dynamic panel GMM technique for our empirical estimates.…”

Section: Endogeneitymentioning

confidence: 95%

“…Furthering the discussion on the decline in profitability of banks due to advanced liquidity levels, Pak (2020) observes that the implementation of NSFR would lead to a decline in NIMs of the banks due to a narrower spread (loans) and maturity mismatch. The author's findings support that of Molyneux and Thornton (1992), who evidence that higher liquidity holdings (particularly those imposed by the authorities) have an adverse impact on profitability, as they represent a cost to the bank.…”

Section: Nsfr and Bank Profitabilitymentioning

confidence: 99%

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Net Stable Funding Ratio (NSFR) and Bank Performance: A Study of the Indian Banks

Sidhu

Rastogi

Gupte

et al. 2022

JRFM

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The present study examines the impact of the Net Stable Funding Ratio (NSFR) on the performance of Indian commercial banks from 2010 to 2021. The study further investigates how the relationship between liquidity and performance varies under the influence of bank-specific factors such as ownership structure (Promoter vs. Institutional investors). Bank performance is evaluated using a two-fold approach—Profitability measures (NIMs and ROA) and NPA levels of banks. Using the Dynamic panel data regression technique, we find that the relationship between NSFR and NIMs is negative, implying that bank NIMs tend to decline as banks comply with NSFR regulation. Furthermore, the study demonstrates that the inverse relationship between NSFR and bank NIMs becomes more profound when promoters’ stakes are high. Finally, the results highlight that for banks with higher institutional holdings, NPA levels witness an upward trend as the NSFR ratio increases. From a policy perspective, study results will help policymakers understand how changes in liquidity levels impact the wider banking sector and guide them on the overall direction in which to progress with the reforms.

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“…© 2022 AESS Publications. All Rights Reserved.impact profits significantly and negatively(Houston, Lin, Lin, & Ma, 2010;Kanas, Vasiliou, & Eriotis, 2012;Ongore & Kusa, 2013;Pak, 2020).2.9. Unemployment and Financial PerformanceA study by on American banks shows that a considerably high unemployment rate significantly and negatively impacts the profitability of these banks.…”

mentioning

confidence: 99%

Determinants of Financial Performance in the Banking Sector: A Case Study of Listed Kuwaiti Banks

Alharthi

2022

5002

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This study explores the determinants of the profitability of banks listed on the Kuwaiti stock exchange, Boursa Kuwait. This study also investigates the financial performance of the listed Kuwaiti banks during the COVID-19 pandemic. The aim of this study is to examine the correlation between profitability and the factors that determine profitability for 11 listed Kuwaiti banks from 2013 to 2020. Relevant data was statistically analyzed using the generalized method of moments (GMM) model. The empirical findings of this research indicate that deposit volume and oil prices positively impact the profitability of the Kuwaiti banking sector. Conversely, bank size, leverage, and capitalization had a significant negative impact on the earnings of the listed Kuwaiti banks. Based on the findings of this study, several policy recommendations are made that would grow the profits of the Kuwaiti banking sector and mitigate the effects of negative factors.

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Bank profitability in the Eurasian Economic Union: Do funding liquidity and systemic importance matter?

Cited by 21 publications

References 36 publications

Bank Age and Financial Performance: Is the Relationship Linear or Nonlinear? Evidence From Listed and Unlisted Commercial Banks in China

Bank Age and Financial Performance: Is the Relationship Linear or Nonlinear? Evidence From Listed and Unlisted Commercial Banks in China

Net Stable Funding Ratio (NSFR) and Bank Performance: A Study of the Indian Banks

Determinants of Financial Performance in the Banking Sector: A Case Study of Listed Kuwaiti Banks

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