Impact of Bank Specific and Macroeconomic Variables on the Performance of Commercial Banks of Nepal

Pradhan, Radhe Shyam; Shrestha, Rabi

doi:10.2139/ssrn.2793530

Cited by 19 publications

(26 citation statements)

References 5 publications

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“…The results show that the bank size has a positive significant relationship with ROE at as supported by previous studies such as Menicucci et al, (2016), and Pradhan et al, (2016).…”

Section: Regression Analysis Using Roe As Independent Variablesupporting

confidence: 87%

“…The descriptive analysis revealed for dependent variables; ROE, ROA and NIM are similar to that of Pradhan et al, 2016;Menicucci et al, 2016;Nuhiu et al, 2017;and Abobakr, 2018. In the concept that the data reveals wide variations in ROE, but minimal variations in ROA and NIM. Supporting the idea that almost all banks in a particular region or country apply relatively similar interest rates for almost all kinds of finances.…”

Section: Descriptive Analysismentioning

confidence: 65%

“…Subsequently, this risk-return assumption implies a negative relationship between capital adequacy and bank profitability. The negative relationship between capital ratio and bank's profitability is found in prior researches such as Garcia et al, (2016), Pradhan et al, (2016), and Chouikh and Blagui (2017).…”

Section: Capital Ratiomentioning

confidence: 74%

“…Various studies revealed that size positively affects the profitability of the banks inspected, such as Abobakr (2018), Kawshala and Panditharathna (2017), Menicucci et al, (2016), Yakubu (2016), Pradhan and Shrestha (2016), and Ally (2014). Mostly, prior studies on the effect of bank size on its profitability line with the argument that larger banks benefit from economies of scale and cost reduction (Ben Naceur and Goaied, 2008;Bourke, 1989;Molyneux and Thorton, 1992;Bikker and Hu, 2002;Goddard et al, 2004aGoddard et al, , 2004b, therefore they are expected to have higher levels of performance than smaller banks.…”

Section: Bank Sizementioning

confidence: 99%

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The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

Kassem¹,

Sakr²

2018

JFBM

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The purpose of this study is to investigate the relationship between bank-specific factors and the profitability of banks in Egypt. Thus, finding the main internal characteristics for achieving higher profitability. In this research, OLS regression analysis is used to examine the relationship between bank-specific characteristics and bank's profitability for a sample of 19 Egyptian banks during the period 2007-2016. The findings reveal that bank size and loan loss provision ratio are the main determinants of bank's profitability, by showing a significant relationship with all measures of profitability. Capital ratio shows a significant relationship with ROA and NIM, but insignificant with ROE. However, Loan ratio and deposit ratio have an insignificant effect of bank's profitability.

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“…The results show that the bank size has a positive significant relationship with ROE at as supported by previous studies such as Menicucci et al, (2016), and Pradhan et al, (2016).…”

Section: Regression Analysis Using Roe As Independent Variablesupporting

confidence: 87%

Section: Descriptive Analysismentioning

confidence: 65%

Section: Capital Ratiomentioning

confidence: 74%

Section: Bank Sizementioning

confidence: 99%

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The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

Kassem¹,

Sakr²

2018

JFBM

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“…The huge body of the empirical literature has related the bank performance to internal as well as external determinants. Pradhan & Shrestha [52], Aladawan [2], Bourke [17], Srairi [60], and Bikker & Hu [16] found an empirical positive relationship between bank size and bank profitability, especially in the case of a large size. Yet Terraza [61] empirically supported this significantly positive relationship only for medium sized banks.…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Bank Performance: The Case of Tunisian Listed Banks

Chouikh¹,

Blagui²

2017

JFA

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This paper studies the relationship between Tunisian listed banks performance and two types of determinants; internal and external. The internal explanatory variables are: (1) the bank size, (2) privatization, (3) board size, (4) capital-to-assets ratio, and (5) cost of efficiency. The macro-economic (external) exogenous variables are: (1) gross domestic product growth rate and (2) inflation. Our panel-data analyses suggest a statistically significant and negative relationship between bank profitability (endogenous variable) and board size. However, the remaining variables were found to be statistically insignificant. This can be explained by two main sub-hypotheses: (a) state-owned banks included in the sample disturb the statistical significance of the results and (b) the year 2011 is a cut-off point that changed the Tunisian bank performance determinants.

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Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria

Agwu¹,

Godfrey²,

Maxwell³

2020

IJAFRM

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This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria is incited by the heated arguments of finance and economic researchers' on whether macroeconomic variables; Gross Domestic Product rate, interest rate, inflation rate, money supply and exchange rate are or not in control of the banks' management banking sector. Based on that, researchers in this study want to take a solid position on whether macroeconomic variables positively or negatively or of no effect on the performance of deposit money banks (DMBs) in Nigeria. The study made use of suitable finametrica tools to analyze the models. The results of the Error Correction Model and General Method Moments results that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. VECG ranger Causality/Block Exogeneity Wald Test observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, impulse response result revealed that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria within herent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.

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Impact of Bank Specific and Macroeconomic Variables on the Performance of Commercial Banks of Nepal

Cited by 19 publications

References 5 publications

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

The Impact of Bank-Specific Characteristics on the Profitability of Commercial Banks in Egypt

The Determinants of Bank Performance: The Case of Tunisian Listed Banks

Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria

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