...Scale/Research Planning 7 8. Timetable 9 9. Problems of the Fact 10 10. Conclusion 10 11. Reference 11 12. Appendix 12 Abstract Commercial Banks are the most dominant financial institutions in the domain of commerce and industry. The efficiency of commercial banks is dependent on their ability to mobilize fund profitability, which can enhance their corporate value. There can be few, if any, parts of the economy in which risk management is more important than the financial sector. Financial institutions account for a sizeable number of the world's leading companies and have a critical role to play in the economics of every country and thus in world economic order as a whole. The research will be focusing on the case study method by interviewing the concerned person that will provide detailed analysis of such Bangladeshi commercial banks of the country as their business operation is being centered on taking risks in conditions of uncertainty. The process with such focus on how outcomes relate to effective risk management will be deemed important. The results should achieve in answering such issues and problems presented based on research findings and information researches to support whatever data is gathered respectively. In this research we shall try to focus on how risk management i.e. firms’ financial valuation to its customer and management to added corporate value, may...
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...A STUDY ON FINANCIAL RATIOS OF MAJOR COMMERCIAL BANKS Dr. Y. Sree Rama Murthy Director Research & Senior Faculty Member College of Banking & Financial Studies Sultanate of Oman RESEARCH STUDIES 2003 _______________________________________________________ College of Banking & Financial Studies PO Box 3122, PC 112 Sultanate of Oman CONTENTS Chapter 1 INTRODUCTION Chapter 2 PROFITABILITY MANAGEMENT RATIOS Chapter 3 LIQUIDITY RISK MANAGEMENT Chapter 4 INTEREST RATE RISK MANAGEMENT Chapter 5 CAPITAL ACCOUNT MANAGEMENT Chapter 6 CREDIT RISK MANAGEMENT Chapter 7 COST MANAGEMENT Chapter 8 INTERNATIONAL COMPARISONS Chapter 9 CONCLUSIONS REFERENCES Summary The objective of the study is to calculate the important financial ratios of major commercial banks in Oman and compare their financial management practices as indicated by the ratios. The study also compares ratios of commercial banks in Oman with ratios of other banks in developed countries so that it throws up not only intra country performance comparisons but also cross country comparisons which makes study all the more useful. For the purpose of the study data was drawn from the balance sheets and income statements of commercial banks. The study uses data from December 1997 to December 2004 for the profitability ratios part of the study. For studying liquidity, interest rate risk, capital adequacy etc the study uses the data from December 2000 to 2004...
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...of a Commercial Bank 3 1.1.3 Effect of derivatives on foreign exchange exposure 5 1.1.4 Commercial Banks in Kenya 6 1.2 Research Problem 7 1.3 Objectives of the Study 8 1.4 Value of the Study 9 CHAPTER TWO: LITERATURE REVIEW 10 2.1 Introduction 10 2.2 Theoretical review 10 2.3 Foreign Exchange Risk Management 13 2.6 Empirical Review 18 2.6 Summary of Literature review 19 CHAPTER THREE: RESEARCH METHODOLOGY 20 3.1 Introduction 20 3.2 Research Design 20 3.3 Study Population 20 3.4 Data Collection Procedures 20 3.5 Data Analysis and Presentation 20 REFERENCES 22 APPENDICES 26 LIST OF ABBREVIATIONS CBK – Central Bank of Kenya ERV - Exchange rate volatility FOREX – Foreign Exchange FX – Foreign Exchange IFE – International Fisher Effect IFX - Income from foreign currencies as a percentage of total income IRP – Interest Rate Parity MST – Market Segmentation Theory NA - Net Assets NFXNA - Net Foreign Currency Exposure Relative to Net Assets NFX - Net Foreign Currency Exposure NSE – Nairobi Securities Exchange OS - Ownership Status or Nature of Ownership PPP – Purchasing Power Parity CHAPTER ONE: INTRODUCTION 1.1 Background The traditional role for commercial banks has been perceived to be the reduction of transactions costs and the provision of information. However, given the technological, information, and financial innovations of the last decade, risk sharing...
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...CREDIT RISK MANAGEMENT BY COMMERCIAL BANKS IN KENYA, A COMPARATIVE STUDY OF KCB AND COOPERATIVE BANK, CHUKA BRANCHES BY AMULYOTO FRANKLIN UNGAYA (BB1/02596/10) A Research Proposal Submitted to the Department of Business Administration in Partial Fulfillment of the Requirement for the Award of the Degree of Bachelor of Commerce (Banking and finance option) of Chuka University CHUKA UNIVERSITY AUGUST, 2013. DECLARATION AND APPROVAL This research proposal is my own original work and has not been presented for a degree in any other university, either in part or a whole. Amulyoto, F. U. Signature……………………………… Date…………………………………… APPROVAL This research has been submitted for examination with the approval of the following university supervisor: MR. NGENO K. W. A. Department of Business Administration Chuka University Signature………………………… Date……………………………… ACKNOWLEDGEMENT The writing of this proposal was made possible through support and encouragement from various persons. I sincerely thank my creator, the Almighty God who has given me grace to carry out my research study. I would also like to thank my supervisor Mr. Ngeno. Through his guidance and correction I was able to come up with this proposal. The gratitude is profound. Special thanks to everyone else who’s input in this work cannot go unmentioned. DEDICATION This research is dedicated to my mother, Mrs. Judith Amulyoto. TABLE OF CONTENTS ...
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...Term paper On “Credit Risk Management Analysis of United Commercial Bank LTD” [pic] Submitted To: Fahmida Israt Jahan Lecturer Department Of Finance and Banking Dhaka Commerce College Submitted By: Fahim-Ul Kabir Khan Roll No: 978 88 76 Registration No: 185 86 89 B.B.A (Hons.) Part 2 Session 2010-2011 Department Of Finance and Banking Dhaka Commerce College Date of Submission: May 31, 2014 [pic] National University Letter of Transmittal May 31, 2014 Fahmida Israt Jahan Lecturer Department of Finance and Banking Dhaka Commerce College Subject: Term Paper On Credit Risk Management Analysis of United Commercial Bank Ltd Dear Madam, With due respect, I am submitting my term paper on “Credit Risk Management Analysis of United Commercial Bank Ltd” This topic was assigned to me to fulfill the partial requirement of BBA program under National University. It has been a great pleasure for me to have the opportunity to work on the subject mentioned above. This term paper is prepared under supervision of department of business administration and I respectfully acknowledge his guidance and help. I have worked hard in preparing this term paper and have tried to make my paper as clear and comprehensive within the constraints. I sincerely believe that it will serve the required purpose. Sincerely Yours, _______________________________ ( Fahim-Ul Kabir Khan ) Roll No: 978 88 76 ...
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...evaluation methods in commercial banks and associated risks for managing assets and liabilities 97 Performance evaluation methods in commercial banks and associated risks for managing assets and liabilities University Reader PhD. Claudiu CICEA, Academy of Economic Studies Bucharest, Romania email : claudiu.cicea@man.ase.ro University Professor PhD. Daniela HINCU, Academy of Economic Studies Bucharest, Romania email : daniela.hincu@man.ase.ro Abstract Commercial banks represent the core of the credit for any national economy. In turn, the credit is the engine that put in motion the financial flows that determine growth and economic development of a nation. As a result, any efficiency in the activities of commercial banks has special implications on the entire economy. That is why we consider very useful to present an analysis of possibilities for evaluating the performance in the commercial banks. The management of every commercial bank must establish a system for assessing investment performance which suits its circumstances and needs and this evaluation must be done at consecutive intervals to ensure the achievement of the Bank's investment objectives of hand; and to know the general direction of the behavior of investment activity in the past and therefore predictable as it in the future on the other hand. The main objective for this paper is to analyze some quantitative methods used in assessing the performance of investment activity in commercial banks (such quantitative...
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...Chinese Commercial Banks' Capital Structure Optimization Jianwen ZHENG Wuhan University of Technology,China email:174068598@qq.com Keywords: Commercial Banking, Capital Structure, Optimization, Strategy Abstract. Optimize the capital structure is the fact that the premise of improving corporate governance.This paper describes the status of the capital structure of Chinese commercial banks, analyzes the main problems of Chinese commercial banks supplement existing capital structure, optimization strategies proposed capital structure of commercial banks in China, China's policy of commercial banks and other wealthy significant ownership concentration, such as optimization of innovative recommendations. Introduction The capital structure of the model can have a significant impact on the Company's operating performance.This effect can be divided into two cases: one is the direct impact that the capital structure, the financing risk and the cost of capital can directly affect business performance; while another case is the indirect impact, mainly on the company's first impact on the governance structure, and then have an impact on business performance through the governance structure.The pace of development of China's listed banks initially very slow. Under conditions of economic system reform, the bank's capital structure gradual adjustments, operating performance has gradually improved. However, compared with the world's developed countries, Chinese commercial banks...
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...------------------------------------------------- Batch: PGDM 2011 - 13 Term: IV ------------------------------------------------- ------------------------------------------------- Course: Commercial Bank Management (CBM) Credits: 3 ------------------------------------------------- ------------------------------------------------- Course Instructor: Prof. D N Panigrahi Objectives of the course: The course inputs are designed to accomplish the following objectives. * To help students to understand the role and functions of Commercial Banks, main strategic issues in retail and corporate banking and the risks faced by the Banking Industry in India. * To familiarise the students with the new Banking Practices and Processes including new banking technologies. * To familiarise the students with the legal and regulatory framework for banks in India. * To equip the students with the tools and techniques used in interpreting and evaluating the performance, profitability, productivity, and efficiency of the Commercial Banks. * To equip the students with the in-depth knowledge of Bank Financial Management Process including Treasury, Investment, Asset Liability Management & Risk Management. * To equip the students with the in-depth knowledge and skills in Credit Analysis & Appraisal Processes relating to the banks’ lending decisions like Working Capital Financing, Term Loan & Project Financing, Domestic & International Trade Finance including Export-Import Finance, BG...
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...Literature------------------------------------------------4 3.0 Banking Industry in Bangladesh---------------------------------------------------------- 3.1 What is a Bank? ----------------------------------------------------------------------5 3.2 Definitions of Bank form different view -------------------------------------5 3.3 Where does the word BANK come from? ------------------------------------6 3.4 Why Banks? Why don’t go to another financial institution? -------------7 3.5 Banking System in Bangladesh---------------------------------------------------7 3.6 Banking system is very from country to country because of Following 3 reasons---------------------------------------------------------------------12 3.7 There are different kinds of financial services firms calling themselves Banks---------------------------------------------------------------------------------------12 4.0 Major Problems Faced by Bangladeshi Banking Industry-------------------------14 4.1 Lack of Good Governance, Accountability and Transparency------------14 4.2 Low quality of asset -----------------------------------------------------------------15 4.3 Inadequacy of Effective Risk Management System--------------------------16 4.4 BASEL Slandered Implementation Problem ---------------------------------17 4.5 CAMELs rating problem-----------------------------------------------------------18 ...
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...2012/2013 FIN 5105 – Bank Management Evaluating the Performance of Commercial Bank of Ceylon and Hatton National Bank Lecturer Mr. S.N.B.M.W.Narayana Group Assignment Submitted in partial fulfillment of the Postgraduate Diploma in Applied Finance P age |2 Group Members 1. 2. 3. 4. 5. Hiranya Disanayake Inoka Sanjeewani Kirani Perera D.D Kulathunga Nilusha Peiris -GS/PGD/APF/65 -GS/PGD/APF/79 -GS/PGD/APF/73 -GS/PGD/APF/68 - GS/PGD/APF/71 P age |3 Acknowledgements We would like to express the deepest appreciation to our lecturer Mr. S.N.B.M.W.Narayana, who has directed us in writing this assignment. P age |4 Executive Summary The purpose of this study is to analyse the performance of two private sector leading commercial banks namely Commercial Bank of Ceylon PLC and Hatton National Bank Limited. The main reasons for the selections were the highest assets base and growth performance compared with other banks in the industry. Our analysis of these two banks is based on the comparison of main components including, corporate governance, risk management, and financial analysis. Chapter one introduces the contextual outlook of the two Banks. This includes vision mission, objectives and the competitive position of the two banks. Chapter Two reviews the Corporate Governance of the Banks. We have analysed the compliance of code of best practice by the two banks. Chapter Three explains the performance analysis of the Banks in terms of their...
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...1Introduction This section discusses some empirical and theoretical literature on the effect of credit risk management on financial performance, and introduces an overview of BancABC and its credit risk management practices 2.2Brief Company overview 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...
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...Chinese Banking System- Risk Management Central banks are the principal monetary authority of a country or a group of countries and are crucial to the functioning of all banks, financial markets, and the economy. “Central banks typically expose themselves to variety of risks including market, credit, interest rate and liquidity risk”. (PWC.com). Furthermore, central banks are exposed to significant reputational and operational risks as well as legal risks. Central banks necessitate the combination ofliquidity, safety and the enhancement of returns on invested funds, as the fundamental criteria for managing its reserves and financial risks. Hence, central banks usually implement a separate risk management department that monitors the central bank widerisks. In the Chinese banking system, China Bank Regulatory Commission (CBRC) is responsible for overseeing risk management of all the Chinese banks. The CBRC requires banks to take operative measures to address the weaknesses in their internal controls and improve their risk management and internal control practices.Due to the complicated and changing economic and market environments, both internationally and domestically, along with the emerging risks on various fronts, the CBRC strives to take responsive actions to facilitate sound and sustainable economic and financial developments in China. It endeavors to identify andmitigate risks in a forward-looking manner, by constantly improving the regulatory framework and supervisory...
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...has existed throughout the ages, probably since the time of the Babylonians. As trading developed between nations, the need to convert one kind of money to another also developed. This is how a formal system of foreign exchange arose. As trade between nations developed, Britain, as the nation with the largest and strongest navy, could spread its commercial interests far and wide. It therefore became the most active trading nation, with a vast empire of colonies. As a result, Britain’s currency, the pound sterling, became a benchmark to which other currencies were compared (and exchanged) for most of the seventeenth, eighteenth and nineteenth centuries. Today, most currencies are compared to the U.S. Dollar, currently the most active and commercially strong trading nation; many currencies are still “pegged” to the U.S. Dollar for their exchange rate. Because FX risks can be identified, they can be managed. Foreign exchange management requires that governments, companies, and individuals understand the factors that influence the valuation of currency. By identifying these factors, they can enter into transactions that mitigate the risks to acceptable levels. These transactions, or hedge positions, are designed to maximize the economic benefit of foreign exchange receipts, and payments for governments, multinational companies, or individuals 1.1. Foreign Exchange Foreign Exchange (FX) is the conversion of currency of one country to the currency of other country whereas foreign...
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...Central bank releases first SME credit policy Disbursement target set at Tk 240b this year FE Report The central bank released, for the first time, a small and medium enterprise (SME) credit policy and programmes Thursday with a disbursement target of around Tk 240 billion for the ongoing calendar year. Bangladesh Bank (BB) Governor Atiur Rahman announced the policy at a discussion with chief executive officers and managing directors of the commercial banks held at Seagul Hotel in Cox’s Bazar Thursday night with BB Deputy Governor Murshid Kuli Khan in the chair. The new policy has focused on encouraging more women entrepreneurs in business and investment across the country. The central bank announced to set up a three-tier monitoring system to ensure growth of the SME sector in the country. Under the monitoring system, the central bank headquarters, its nine branch offices across the country and head offices of all commercial banks will review the implementation of SME credit programmes regularly. Of the total target, the state-owned commercial banks and financial institutions, according to the central bank statistics, will disburse Tk 44.97 billion in 2010. Twenty-nine private commercial banks will distribute Tk 174.78 billion while nine foreign commercial banks will disburse Tk 7.07 billion to the entrepreneurs. Besides, the country’s non-banking financial institutions have made commitment to disburse Tk 13.13 billion as SME loans during the current calendar year. ...
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...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 into focus...
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