Performance and Financial Ratios of Commercial Banks in Malaysia and China

Tumin, Mohd Hanafi; Said, Rasidah Mohd

doi:10.2139/ssrn.1663612

Cited by 29 publications

(2 citation statements)

References 38 publications

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“…In general terms, the relationship that exists between bank size of commercial banks and their performance is considered to be positive (Kiyota, 2011;Nodeh et al, 2015). However, several research studies have implicated bank size impact to be non-linear, with profitability increasing with commercial bank size and shrinking as a result of bureaucratic factors, among other reasons (Hanafi Tumin & Mohd Said, 2010). Taking into consideration the above studies, Hanafi Tumin and Mohd Said (2010) findings are different from the suggested findings and conclusions by Al Karim and Alam (2013) and Nodeh et al (2015).…”

Section: Table 9 -Sargan Test For the Modelmentioning

confidence: 99%

Do Bank Size Moderate Relationship between Banks’ Portfolio Diversification and Financial Performance of Commercial Banks in Kenya?

Ngware

Olweny

Muturi

2020

SJOM

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Purpose- It is complicated to efficiently manage the bank’s portfolio, simultaneously maximize returns and minimize risks while being subject to managerial and regulatory constraints. In the financial industry, the size of a bank is used to assist in capturing economies as well as diseconomies of scale. Design/Methodology- As in cases of most literature from finance, natural logarithms of banks' total assets were made use of to measure commercial banks’ size. The 43 commercial banking institutions having an official license from CBK by December 2017 were the target population of this study. The study analyzed Time-Series Cross-Sectional unbalanced secondary panel data obtained from all the 43 commercial banking institutions in Kenya for fifteen years ranging from 2003 to 2017. Findings- Study findings revealed a positive effect of bank size on ROE and ROA that was significant. Correlation analysis revealed a positive association of bank size on the financial performance of banks in Kenya, which was significant. Bank size had a significant moderating effect on the relationship of banks portfolio diversification and financial performance of banks in Kenya. Practical Implications- The findings on bank size insinuated that a higher size of entire asset of banks is most probable to accelerate the bank to diversify into feasible opportunities on investment, traverse more enhanced lines of business, increase capacity in market power and, produce increased value that boosts the firm to profit from economies of scale and wider scope and henceforth superior and increased financial performance.

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Section: Table 9 -Sargan Test For the Modelmentioning

confidence: 99%

Do Bank Size Moderate Relationship between Banks’ Portfolio Diversification and Financial Performance of Commercial Banks in Kenya?

Ngware

Olweny

Muturi

2020

SJOM

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“…A banking system is a component of the financial system, which plays an important role in the economic development of countries of the world (Tumin & Said, 2011). McKinnon (1973), Misra and Aspal (2013) point out the role of the financial system for economic growth and development.…”

Section: Introductionmentioning

confidence: 99%

Applying the CAMEL model to assess performance of commercial banks: empirical evidence from Vietnam

Nguyen

Pham

2020

Banks and Bank Systems

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The paper aims to investigate the impact of CAMEL components on the financial performance of commercial banks in Vietnam. Three econometric models are built using four CAMEL’s crucial indicators as independent variables (capital adequacy, asset quality, management effectiveness, bank liquidity) and return on assets (ROA), return on equity (ROE), and net interest margin (NIM) as proxies for commercial banks’ financial performance – dependent variables. The research sample includes 31 Vietnamese commercial banks over the 6-year period, from 2013 to 2018. The results show a better fit of the fixed effects model (FEM) in terms of the research methodology compared to the ordinary least squares (OLS) and random effects model (REM). It was found that capital adequacy, asset quality, liquidity and management efficiency affect the performance of Vietnamese commercial banks. Acknowledgement This research is funded by National Economics University (NEU), Hanoi, Vietnam. The authors thank anonymous referees for their contributions and the NEU for funding this research.

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Implementation of Basel III Regulations in Asia-Pacific

Pham

2021

Prediction and Causality in Econometrics and Related Topics

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Performance and Financial Ratios of Commercial Banks in Malaysia and China

Cited by 29 publications

References 38 publications

Do Bank Size Moderate Relationship between Banks’ Portfolio Diversification and Financial Performance of Commercial Banks in Kenya?

Do Bank Size Moderate Relationship between Banks’ Portfolio Diversification and Financial Performance of Commercial Banks in Kenya?

Applying the CAMEL model to assess performance of commercial banks: empirical evidence from Vietnam

Implementation of Basel III Regulations in Asia-Pacific

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