...Introduction: Banks are very old form of financial institution that channels excess fund from surplus unit to deficit unit in consideration of a price called interest. Banking business definitely established on a relationship of Debtor-creditor between the surplus unit called depositor and the bank and between the deficit unit called borrowers and the bank. Here, opportunity coast of money works as interest is considered the price of the credit. For the development of an economy, bank furnishes a huge contribution and modem economy can not be imagined without the service of bank. Economic development of a country requires a well organized, smooth, easy to reach and efficient saving-investment process. The function of a single bank is not limited to its geographical region only rather it has reached beyond the border of the country. So banking business has been shaped as global business and the rest other business greatly depend on the strength of banking business performance. The recent financial crisis showed many weaknesses within the on hand financial system across the world. This triggers many issues linking to the protection of banking institution against probable future non expected risks associated with periods of insecurity. Bank regulatory authorities are directly liable to evaluate the performance of each banking business to find out any flaw. Regulatory authority should have to sense any upcoming difficulties regarding the performance of the all banks. For that...
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...Administration Factors influencing the Profitability of Private Commercial Banks in Ethiopia Abraham Redi I.D. No. 1444/07 Section I Submitted to: Matios Ensermu (PhD) Presented as a Partial Fulfillment for the course Business Research Methodology (MGMT601) December, 2015 Addis Ababa, Ethiopia I. Table of Contents Chapter One ……………………………………………………………………………………….1 1.1 Introduction 1 1.2 Background of the Study 3 1.3 Statement of the Problem 5 1.4 Research Questions 6 1.5 Objectives of the Study 7 1.5.1 General Objective of the Study 7 1.5.2 Specific objective of the study 7 1.6 Scope and Limitation of the Study 7 1.6.1 Scope of the Study 7 1.6.2 Limitation of the Study 8 1.7 Significance of the Study 8 1.8 Operational Definitions 9 1.9 Organization of the paper 9 Chapter Two ……………………………………………………………………………………...10 2 Literature Review 10 2.1 Measures of Bank Performance/Profitability 10 2.2 Factors Influencing Bank Performance/Profitability 10 2.3 The influence of Bank-specific factors on Bank Profitability 11 2.3.1 Capital Adequacy 11 2.3.2 Assets Quality 12 2.3.3 Management Efficiency: Operational Costs Efficiency 12 2.3.4 Earning ability: Diversification of Income 13 2.3.5 Liquidity 14 2.4 The Influence of Industry-specific Factors on bank profitability 14 2.4.1 Bank Size: 14 2.4.2 Market Concentration 14 2...
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...between capitalisation and bank profitability BY SINDISO SIBANDA DEDICATIONS This project is a special dedication to my wife Esinathi Sibanda; daughters Faith and Cindy Sibanda my brother Leonard, my sister Nyembezi and my parents for their unwavering support in my studies. ACKNOWLEDGEMENTS First and foremost, I desire to convey my sincere gratitude to Mr. T Chigamba, my research project supervisor for his consistent guidance and uncountable patience throughout the project. I also want to express my gratitude to my brother Leonard for his unwavering support and encouragement during the research project. Special mention also goes to Michael my fellow student for his support. ABSTRACT The issue of bank capitalisation as it relates to profitability and the overall soundness of the financial services sector has generated a lot of debate in industry and commerce, academics and scholars propounding several pieces of literature to put to the fore their heads of arguments and possible influence the thinking of policy makers, monetary authorities in particular. The pronouncements by RBZ that banks have to have threshold of one hundred million dollars ($100,000,000) as capitalisation did not help the situation either, instead it created anxiety in the banking fraternity with other banks falling by the way side (Time bank, Royal bank and recently Metbank.) and...
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...FACTORS AFFECTING PERFORMANCE OF COMMERCIAL BANKS IN KENYA BY MAURICE MUIRURI KAARIUKI A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS IN BUSINESS ADMINISTRATION, DEGREE OF KENYATTA UNIVERSITY. JULY, 2014 DECLARATION Declaration by the Researcher This research is my original work and has not been presented for a degree in any other University. No part of this study may be reproduced without prior authority of the author and/or Kenyatta University. Signature……………………………………………………… Date………………………. Maurice Muiruri Kariuki Declaration by the Supervisor This research proposal has been submitted for examination with my approval as the university supervisor. Signature……………………………………………………… Date………………………. Name (PhD.) School of Business ACKNOWLEDGEMENT I take this opportunity to express my gratitude and regards to Professor name (PhD.) for his guidance. I am indebted to all the persons and institutions that offered support, encouragement and prayers to me during the entire research. Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement without which this assignment would not be possible. ABSTRACT The study seeks to investigate the factors affecting performance of commercial banks in Kenya. The Background of the study reveals that there has been continued globalization and economic cooperation among the...
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...CHAPTER ONE INTRODUCTION 1.1 Background The turbulence with which organizations and individuals operate in today’s life leaves changes as the only constant. It is paramount to note that individuals and institutions that choose to meddle through turbulence find it very difficult to survive. Indeed there are many reasons that inspire change. According to McKinley survey on change management (2006) organizations will change to reduce costs, to move from a good performance to a great performance, turn around a crisis situation, and catch up with rivals or to direct part of the organization. In doing so according to Davis and Holland (2006) organizations use systematic methods to ensure that the organizational change is guided in a planned direction, conducted in a cost effective manner and completed within a targeted time frame with desired results. Further Todd A (2008) focuses on the people aspect by arguing that change management is a structured and systematic approach of achieving a sustained change in human behavior within an organization. The success of implementing change is generally associated with those who facilitate the change process. The change agent is defined here as a manager who seeks “to reconfigure an organizations roles, responsibilities, structures, outputs, processes, systems, technology or other resources” (Buchanan and Badham, 1999) in the light of improving organizational effectiveness. The role of...
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...International Journal of Bank Marketing Emerald Article: Does relationship marketing improve customer relationship satisfaction and loyalty? Andreas Leverin, Veronica Liljander Article information: To cite this document: Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 Permanent link to this document: http://dx.doi.org/10.1108/02652320610671333 Downloaded on: 16-01-2013 References: This document contains references to 91 other documents Citations: This document has been cited by 30 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 13476 times since 2006. * Users who downloaded this Article also downloaded: * Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 http://dx.doi.org/10.1108/02652320610671333 Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 http://dx.doi.org/10.1108/02652320610671333 Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss:...
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...MP A R Munich Personal RePEc Archive Bank-specific, industry-specific and macroeconomic determinants of bank profitability Panayiotis Athanasoglou and Sophocles Brissimis and Matthaios Delis Bank of Greece June 2005 Online at http://mpra.ub.uni-muenchen.de/32026/ MPRA Paper No. 32026, posted 5. July 2011 14:01 UTC BANK OF GREECE BANK-SPECIFIC, INDUSTRY-SPECIFIC AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY Panayiotis P. Athanasoglou Sophocles N. Brissimis Matthaios D. Delis Working Paper No. 25 June 2005 BANK-SPECIFIC, INDUSTRY-SPECIFIC AND MACROECONOMIC DETERMINANTS OF BANK PROFITABILITY Panayiotis P. Athanasoglou Bank of Greece Sophocles N. Brissimis Bank of Greece and University of Piraeus Matthaios D. Delis Athens University of Economics and Business ABSTRACT The aim of this study is to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis. To account for profit persistence, we apply a GMM technique to a panel of Greek banks that covers the period 1985-2001. The estimation results show that profitability persists to a moderate extent, indicating that departures from perfectly competitive market structures may not be that large. All bank-specific determinants, with the exception of size, affect bank profitability significantly in the anticipated way. However, no evidence is found...
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...Pakistan 2 Impact of interest rate on stock market 3 A study based on the effects of interest rate (KIBOR) on share price 4 Market Interest rate and commercial bank profitability in Pakistan 5 Determinants of Corporate dividend payout policy 6 Effects of Free Cash flow on profitability of firms 7 Determinant of dividend payout ratio: A study of Pakistani fertilizer sector 8 Fundamentals and stock returns in Pakistan 9 Effects of mergers and acquisition in banking sector of Pakistan 10 Impact of Privatization of banks on profitability 11 Can risk aversion indicators anticipate financial crises? 12 Cash flow and capital spending relationship: evidence from automobile sector 13 Impact of Privatization on profitability and efficiency of banks in Pakistan 14 To study the relationship between price earning ratio and return on investment 15 A test of price earning ratio to predict future growths 16 Factors affect on the dividend payout ratio (sugar industry) 17 Impact of macro-economic variables on stock sector of Pakistan 18 Relationship between Cash flow and investment spending in textile industry 19 Impact of taxation on firm’s dividend payout/ratio 20 Share price volatility explicatedmeasured by fundamentals 21 Stock price and economic variables ( Interest rate, inflation and GDP) 22 Determinants of P/E Ratio 23 Impact of capital structure on profitability 24 Impact of interest rate changes on bank’s profitability 25 Relationship of stock market returns and rate...
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...Determinants of profitability of Non Bank Financial Institutions’ in a developing country: Evidence from Bangladesh Md. Sogir Hossain Khandoker* Associate Professor, Department of Finance Jagannath University, Dhaka 1100; & Ph.D fellow, Department of Business Administration Assam University, Silchar, India E-mail: sogir.nu@gmail.com Cell: +88 01190 47 6187 Professor Dr. R. K. Raul Dean, Department of Business Administration Assam University, Silchar, India E-mail: rkraul@yahoo.com S. M. Galibur Rahman BBA, Department of Finance, Jagannath University, Dhaka 1100 E-mail: galibju@gmail.com *Corresponding author Determinants of profitability of Non Bank Financial Institutions’ in a developing country: Evidence from Bangladesh Abstract This project examines the determinants of the profitability of firms in the Non Banking Financial Institution (NBFIs) industry of Bangladesh. Financial Performance of a financial institution basically depends on its some key financial determinants. Specially operating efficiency is main influencing factor which is calculated through operating income. Besides it capital Structure composite of equity and liability, operating expense, total asset significantly affect the profitability of any NBFI company. In addition term deposit also affects the profitability though that is statistically not significant. Different Statistical techniques such as correlation matrix, multiple regressions have been used to determine the relationships between...
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...------------------------------------------------- A Report On Comparative Performance Study of Conventional and Islamic Banking in Bangladesh Course Title: THEORY AND PRACTICES OF BANKING IN BANGLADESH Course Code: FBK 312 Submitted To: Md. Nur Nabi Assistant Professor Department of Finance and Banking Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Submitted by: Group: C (Level: 3, Semester: I) Session: 2012-2013 Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Date of Submission: 09th May 2015 ------------------------------------------------- Roll No | Registration No | Name of the Students | Signature | 1203051 | 03596 | Nusrat Jahan Rupa | | 1203053 | 03598 | Nusrat Yesmin | | 1203054 | 03599 | Nisath Salsabil Urmi | | 1203056 | 03601 | Mehedi Hasan | | 1203057 | 03602 | Hasan Shahria Nayeem | | 1203060 | 03605 | Khondokar Tanveer Ahsan | | 1203061 | 03606 | Sume Akter | | 1203062 | 03607 | Rased Amer Sohag | | 1203065 | 03610 | Nusrat Jahan Pinki | | 1203067 | 03612 | Rasel Miah | | ------------------------------------------------- Group Member Details ------------------------------------------------- ------------------------------------------------- ATTENDANCE REPORT 1) Level : 3 2) Semester : I 3) Course Code : FBK-312 4) Course Title : THEORY AND PRACTICES...
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...International ISSN: 2278-6236 Journal of Advanced Research in Management and Social Sciences Impact Factor: 4.400 MERGERS A N D ACQUISITIONS IN THE INDIAN BANKING SECTOR: A STUDY OF SELECTED BANKS Komal Gupta* Abstract: In the present era of global economy, Mergers most widely used business strategy restructuring greater market economies share, long term of corporate profitability, entering of scale etc. The present paper evaluates on the financial is conducted performance and Acquisitions have become the and strengthening new markets, capitalising the effects of merger and acquisitions to analyse the effectiveness on the banks. Two cases of merger and acquisitions of mergers and acquisitions have been taken randomly the study, first the merger of ICICI bank and The Bank of Rajasthan, Bank of Punjab. The results of the study indicate positive and acquisitions on the financial as sample for and second the merger of HDFC bank and Centurion of mergers on of the selected banks in India. Pre and post merger comparison on selected variables impact to achieve performance that there is a of the selected banks. Key Words: Mergers and acquisition, Banking, Financial Performance, Financial Ratios, Synergy. *Assistant Professor, Maharaja Agrasen College, Delhi University Vol. 4 | No. 3 | March 2015 www.garph.co...
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...Numerous empirical studies have sought to evaluate the relationship between market structure and performance. The traditional structure-conduct-performance approach (SCP) alone seems hard to reconcile with the true development of the relationship. There are two main stream of hypothesis that studies the relationship between. On one hand, the collusion hypothesis, widely known as SCP (Bain, 1995), stipulates that as a result of market concentration which facilitates the collusion between firms of the industry, greater benefits like higher firm profits arise. On the other hand, Demsetz (1973) provide an alternative reasoning for the positive relationship between concentration and profitability. The efficient structure hypothesis suggests that market structure is dictated by the efficiency of the operating firms. The most efficient firms reap higher profitability and market share which eventually lead to higher market concentration. This review will present some literature findings which are either in favour of or against Demsetz view of efficiency hypothesis. Efficient-structure hypothesis stipulates that bigger market share is the outcome of efficient operations of the firms. It is subdivided into two forms of hypothesis. Under X-efficiency hypothesis, firms with superior management or production processes operate at lower costs and eventually gain more profits. Following-on higher market shares may result in higher market concentration. On another hand, scale-efficiency hypothesis...
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...ABC Holdings Limited is the parent company of a number of banks operating under the BancABC brand in Sub-Saharan Africa, with operations in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe. A group services office is located in South Africa.Historically, BancABC was a merchant bank offering a diverse range of services including wealth management, corporate banking, treasury services, leasing, asset management, and stock broking.ABC Holdings had Its primary listing on the Botswana Stock Exchange, and a secondary listing on the Zimbabwe Stock Exchange (BancABC annual report 2009) During 2014, the ABC Holdings Group was acquired by Atlas Mara. As at 31 December 2014, Atlas Mara had a 98.7% equity stake in ABC Holdings, held directly (60.8%) and indirectly (37.9%). Subsequent to the takeover, ABC Holdings was delisted from the Botswana Stock Exchange on 30 January 2015, and from Zimbabwe Stock Exchange on 12 February 2015.Atlas Mara is a British Virgin Islands registered company with a standard listing on the London Stock Exchange(BancAbc Annual report 2014) The seeks to review the credit risk management methods implemented by the bank . Definition of terms 2.3.1Credit According to Onyeagocha (2001), the term credit is used specifically to refer to the faith placed by a creditor in a debtor by extending a loan usually in the form of money, goods or securities to a debtor .According to Onyeagocha‘sview for a bank to grant some credit to its client there should be element...
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...facilities to borrowers. It is for this reason that the risk taking behavior of a bank will always have an impact on the bank’s profitability and ultimately on whether or not the bank remains a going concern. This is despite that in a number of countries the non-interest income on banks is growing in importance; after-all loans constitute the largest share of bank’s assets. Over the years there has been a significant amount of research on the effects of competition on the risk taking behavior of banks and hence their stability. This has been coupled with inquiries by different competition authorities around...
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...Proposal “The Impact of Asset Liability Management on Banks Profitability: A Comparative Study on Ethiopian Commercial Banks” Prepared by: Samson Abate ID No. GSE/1482/08 Submitted to: Samuel Kifle(Phd.) In Partial fulfilment of Business Research Methods Course January, 2016 Abstract Banks’ profitability is of utmost concern in modern economy. Banks are in a business to receive deposits or liabilities and to issue debt securities on the one hand and create or invest in assets on the other hand. Commercial Banks incur costs for their liabilities and earn income from their assets. Thus profitability of banks is directly affected by management of their assets and liabilities. In addition, different market and macroeconomic factors also influence the ability of the banks to make profits. The asset and liability base of banks in developing countries are narrower than their counterparts in developed countries. This study examines how asset and liability management together with external variables such as degree of market concentration and inflation rate impact the profitability of selected commercial banks in Ethiopia. Although impact of the management of banks’ asset and liability on their profitability has been studied by a number of researchers, the issue of banks’ profitability in Ethiopia has received scant attention from the researchers. This study is an attempt to close this gap, to bring the issues of banks’ assets and liability management in Ethiopia squarely...
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