scholarly journals The Problems of Increasing the Income and Quality of Assets of Commercial Banks

2021 ◽  
Vol 9 (12) ◽  
pp. 1090-1094
Author(s):  
Uktamova Nozima Narzulla Kizi
Keyword(s):  
Commercial Banks ◽  
Loan Portfolio ◽  
Factors Affecting ◽  
Existing Problems ◽  
Asset Quality

Abstract: This article examines the composition of the assets of commercial banks, its profitability, the quality of bank assets and the factors affecting it. In addition, the existing problems were studied through the analysis of the profitability and quality of banks' assets, and conclusions and recommendations were developed to address them. Keywords: asset, income, efficiency, profitability, asset quality, loan portfolio, profit, investment

MODELING THE INFLUENCE OF THE STRUCTURE AND QUALITY OF ASSETS ON THE PROFITABILITY OF A COMMERCIAL BANK

2021 ◽  
pp. 10-18
Author(s):  
Alena S. Kudriavtseva ◽  
Olga G. Arkadeva
Keyword(s):  
Economic Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Factors Affecting ◽  
Correlation And Regression Analysis ◽  
The Stability ◽  
Classical Economic ◽  
Sound Management

In modern conditions, the methods of classical economic analysis are not enough to solve the problem of bank stability. This requires the development of methods and tools to analyze the current situation in the bank and to develop sound management decisions aimed at ensuring the stability of the bank. The article notes that the analysis of the influence of the structure and quality of assets on the profitability of commercial banks is an important step for assessing the financial position and reliability of a bank, and a method is proposed for constructing a model of the dependence of bank’s profitability on the factors that determine it. The scientific sources were the works of Russian and foreign researchers in the field of modeling and characteristics of the banking system, financial stability of credit institutions, assessment of the creditworthiness of potential borrowers, system organization and information technology. The article uses the methods of economic analysis, differential calculus and mathematical statistics, as well as the achievements of the main scientific schools dealing with the problems of economic and mathematical modeling and economic analysis of banking. In order to determine the most significant economic factors affecting the profitability of commercial banks, generalization of the theoretical, methodological and applied aspects of studies devoted to the study of the influence of the structure and quality of assets on the profitability of commercial banks was carried out, and a correlation and regression analysis was made. The model presented in the article can be used to predict changes in the profitability of Russian commercial banks and to predict promising directions for growth in profit and profitability of the bank.

A comparative performance evaluation of banking industry in Bangladesh: CAMEL rating approach

2021 ◽  
Vol 08 (01) ◽  
pp. 2050052
Author(s):  
Md. Rostam Ali ◽  
Md. Rakibuzzaman Ratul ◽  
Rushafa Tasnim Tisha ◽  
Md. Ashikul Islam
Keyword(s):  
Commercial Banks ◽  
The Other ◽  
Comparative Performance ◽  
Other Hand ◽  
Rank 2 ◽  
Composite Rating ◽  
Earning Quality ◽  
Asset Quality ◽  
Rating Model

This study is an attempt to evaluate and compare the performance of State-Owned Commercial Banks (SOCBs) and Private Commercial Banks (PCBs) of Bangladesh. CAMEL rating model has been applied to confess where a bank can be successful and where it has weaknesses. Data have been collected from four SOCBs and eight PCBs for the years 2014–2017. Among the selected SOCBs, it is found that Agrani Bank holds “Satisfactory” position where Sonali Bank holds “Fair” position through the year 2014–2017. On the other hand, Janata bank has improved its position from “Fair” to “Satisfactory” for the year 2016 and 2017. Moreover, Rupali Bank holds ‘Satisfactory’ position only for the year 2017 where this position was “Fair” for the year 2014–2016. On the other hand, it is found that all the selected PCBs hold “Satisfactory” position through the year 2014–2017. Though the composite rating for both types of banks (SOCBs and PCBs) is in “Satisfactory level”, Rank-1 is given to PCBs and Rank-2 is given to SOCBs. CAMEL ratio for “Asset quality” for both types of banks (SOCBs and PCBs) are showing “Dissatisfactory level”. “Earning quality” of SOCBs is showing at a “Marginal level”. Therefore, proper attention should be given to manage the “Asset quality” and SOCBs should increase the “Earning quality”.

The Distressing Effect of Non-Performing Assets to Asset Quality for Commercial Banks in Kenya

2018 ◽  
Vol 3 (6) ◽  
pp. 71-83
Author(s):  
Fred Sporta
Keyword(s):  
Financial Distress ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Risk Level ◽  
Loan Loss ◽  
Risk Levels ◽  
Distress Risk ◽  
Asset Quality

Non-performing Assets is a ratio necessary when identifying financial distress effect on asset quality of financial institutions in Kenya specifically commercial banks in Kenya. Financial distress and asset quality have often been discussed separately in details, but not as satisfactorily this is because of its role of asset quality on distress risk levels of commercial banks. The current research established the distressing effect of non-performing assets on asset quality of Kenyan commercial banks. Nonloan ratio was represented by two variables: Non-performing assets to total loans ratio and Loan loss provision ratio. Thirty-eight Kenyan commercial banks were used for analysis for an eleven year period (2005-2015). Financial statements of commercial banks from CBK was used to extract secondary data for analysis. Results indicated that there a relationship between financial performance and capital adequacy regarding financial distress risk level. A correlation and panel regression analyses were carried out mainly to determine whether there was a relationship of non-performing assets and asset quality of commercial banks in Kenya, the outcome of the study indicated a positive relationship between Non-performing assets and asset quality. This study specifically gives a mindful and sense of reference to the depositor, all banking institutions including the commercial banks and policy-makers to high standards of asset quality by ensuring proper additional guidelines and controls are put in place to guard against non-performing loans.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750006 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Rating System ◽  
Managerial Ability ◽  
Strategic Plans ◽  
Composite Rating ◽  
Asset Quality

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

Determining Risk Factors that Diminish Asset Quality of Indian Commercial Banks

2019 ◽  
pp. 097215091986147 ◽  
Author(s):  
Onkar Shivraj Swami ◽  
B. Nethaji ◽  
Jyoti Prakash Sharma
Keyword(s):  
Risk Factors ◽  
Commercial Banks ◽  
Managerial Efficiency ◽  
Quality Review ◽  
Reserve Bank ◽  
Review Period ◽  
Asset Quality ◽  
Diversified Portfolio ◽  
Reserve Bank Of India

Controlling higher level of non-performing loans (NPLs) has become one of the key objectives of the Reserve Bank of India (RBI), as it may impact banking and macroeconomic stability adversely. In this respect, the present study tries to determine risk factors that diminish asset quality of Indian commercial banks in and around the asset quality review period. Pooled and panel logit model has been employed to examine the determinants of NPLs. We find that banks with lower level of capital, reduced profitability, less diversified portfolio, poor operating and managerial efficiency are at greater risk of having diminished asset quality, whereas the size of the bank is positively linked with the higher level of NPAs. In general, empirical analysis proposes that to identify the bank whose asset quality is likely to deteriorate well in advance, the Regulatory and Supervisory Department of the Central Bank may consider lower level of capital, deteriorating profitability and poor operational efficiency as a leading indicator.

scholarly journals Improvement of Service Quality in the Supply Chain of Commercial Banks—A Case Study in Vietnam

2021 ◽  
Vol 14 (8) ◽  
pp. 357
Author(s):  
Han-Khanh Nguyen ◽  
Thuy-Dung Nguyen
Keyword(s):  
Service Quality ◽  
Commercial Banks ◽  
Three Dimensional ◽  
Sustainable Growth ◽  
Factors Affecting ◽  
Business Operations ◽  
Improve Service Quality

The outbreak of the Covid-19 pandemic caused a serious impact on the business activities of enterprises and households, affecting the operation of banks around the world, especially for capital mobilization from those with savings deposits at commercial banks. In face of the unpredictable developments of the pandemic, many services of banks in Vietnam were also affected, so it has been necessary to make a plan to maintain business operations and respond effectively to these difficulties. In this study, the authors used three research models to form a three-dimensional frame of reference (past, present, and future) to identify, analyze, and evaluate the factors affecting the service quality of commercial banks’ savings deposit mobilization, and to suggest solutions that can minimize risks and improve customer satisfaction for savings deposits at commercial banks, improve service quality to avoid potential long-term risks, as well as maintain sustainable growth and social stability in the future.

scholarly journals The Identification of Green Banking Concept and Bank Liability (A Study of Act Number 10 of 1998 with Extensive Interpretation and Progressive Legal Approach)

2018 ◽  
Vol 2 (1) ◽  
pp. 1-16
Author(s):  
Anitalia Kusumadewi ◽  
Paripurna Paripurna
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Deep Insight ◽  
Legal Research ◽  
Public Companies ◽  
Applicable Law ◽  
Sustainable Finance ◽  
Lender Liability ◽  
Asset Quality

The purposes of this research are to analyze the identification of Green Banking concept in the Act Number 10 of 1998 with extensive interpretation and progressive legal approach and to analyze how banks should be held liable for based on applicable law in view of the extensive interpretation and progressive legal approach. This research is a normative legal research that has analyzed Green Banking concept using Act Number 10 of 1998 concerning Banking, Bank Indonesia Regulation Number 14/15/PBI/2012 concerning Asset Quality of Commercial Banks, Act Number 32 of 2009 concerning Environmental Protection and Management and the Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Application of Sustainable Finance for Financial Services Institutions, Issuer Companies and Public Companies, and then presented as prescriptive research. The result of this study is that banks are reluctant to further examine the AMDAL of financed projects and do not oversee such projects until the termination of the contract. Extensive interpretation and progressive legal approach can be used to provide bank a deep insight regarding the concept of green banking contained in the banking law and the extent to which banks (creditors) are subject to the terms of the lender liability.

scholarly journals Determinants of Credit Infections: Evidence from Banking Sector in an Emerging Economy

2018 ◽  
Vol 6 (2) ◽  
pp. 47-62
Author(s):  
Ayesha Afzal ◽  
Nawazish Mirza ◽  
Azka Mir
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
Lending Institution ◽  
Lending Rates ◽  
Asset Quality ◽  
Panel Estimates ◽  
The Empirical Analysis

This paper applies dynamic panel estimates on 22 commercial banks in Pakistan to determine the factors that affect their asset quality. Consequently, the study tests for a comprehensive array of both bank-specific and macroeconomic variables collected quarterly from 2008 to 2016. The empirical analysis confirms that bad asset quality can be explained by retarded GDP growth and unfavorable movement in exchange and lending rates. Within the bank-specific variables, non-performing loans are the most responsive to loans to the agriculture and energy sectors, level of capitalization, size of the lending institution and quality of management.

scholarly journals Evaluation of the Financial Performance between Traditional Private Commercial Banks and Islamic Banks in Bangladesh

2020 ◽  
Vol 4 (2) ◽  
pp. 1-10
Author(s):  
S. M. Akber ◽  
Asha Dey
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Standard Test ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Test Format ◽  
Average Ratio ◽  
Significant Difference ◽  
Asset Quality

The paper analyzes and evaluated the performance of Islamic banks and Traditional private commercial banks in Bangladesh with a duration from 2015 to 2019. The basis of the analysis used in this paper is CAMEL test.  All the relevant data has collected from the bank’s websites. To measure and compare the performance this paper has used a sample of five Islamic banks and five Traditional private commercial banks. It considered the average ratio of each year.  A standard test format (CAMEL tests) has used to analyze the performance of Islamic and Traditional private commercial banks. To justify the reliability of the data this paper has used t-tests. The outcome of this paper says that apart from the quality of the management significant difference doesn’t exist between the performance of Islamic Banks and Traditional private commercial banks in Bangladesh based on CAMEL test. Considering the quality of the management and asset quality Traditional private commercial banks perform better, but for the capital adequacy and liquidity position Islamic banks perform better in Bangladesh.

scholarly journals IMPACT ON COMPETITIVENESS OF VIETNAMESE COMMERCIAL BANKS: RESEARCH IN HO CHI MINH CITY

2020 ◽  
pp. 07-22 ◽  
Author(s):  
Tran Huu Ai ◽  
Tran Duc Tuan ◽  
Vinh Thanh Bui
Keyword(s):  
Human Resources ◽  
Financial Services ◽  
Commercial Banks ◽  
Development Strategies ◽  
Ho Chi Minh City ◽  
Executive Management ◽  
Factors Affecting ◽  
Management Capacity ◽  
The Impact

This study has been designed to identify the factors affecting the competitive competence of commercial banks and to rank the priority among these factors as applied to bank leaders’ planning and development strategies. According to the evaluation of managers, the impact of the factors affecting the competitive competence of commercial banks is gradually decreasing in the following order: Financial capacity, Quality of banking and financial services, Management capacity of executive management, Human resources, Technology capacity.

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