scholarly journals The impact of capital ratio on lending of EU banks – the role of bank specialization and capitalization

Equilibrium ◽  
2016 ◽  
Vol 11 (1) ◽  
pp. 43 ◽  
Author(s):  
Małgorzata Olszak ◽  
Mateusz Pipień ◽  
Sylwia Roszkowska
Keyword(s):  
Commercial Banks ◽  
Robust Estimator ◽  
Bank Capital ◽  
Savings Banks ◽  
Cooperative Banks ◽  
Lending Activity ◽  
The Impact ◽  
The Relationship

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between loans growth and capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative banks and savings banks. We also expect that this effect is nonlinear, and is stronger in “low” capital banks than in “high” capital banks. In order to test our hypotheses, we apply the two-step GMM robust estimator for data spanning the years 1996–2011 on individual banks available in the Bankscope database. Our analysis shows that lending of poorly capitalized banks is more affected by capital ratio than lending of well-capitalized banks. Loans growth of cooperative and savings banks is more capital constrained that lending of commercial banks. Capital matters for the lending activity in contractions only in the case of savings and “low” capital banks.

scholarly journals Assessing the Impact of Bank Concentration and Liquidity of Refah Bank Branches on Profitability during the Period1383-190

2014 ◽  
Vol 4 (1) ◽  
pp. 248
Author(s):  
Hossin Ostadi ◽  
Nastran Monsef
Keyword(s):  
Commercial Banks ◽  
Bank Capital ◽  
Factors Affecting ◽  
Bank Branches ◽  
Independent Variables ◽  
Bank Deposits ◽  
The Impact ◽  
Bank Concentration ◽  
Research Period

Profitability is an important factor to show this articledoeswhat is the role of the intermediary bank to collect your savings and allocation of loans.  Given the importance of profitability indicators in this study, the factors affecting the profitability of commercial banks in Iranare analyzedwith emphasis on the degree of centralization and bank deposits. Dependent variable is indicators of profitability (ROE, ROA) and bank deposits, bank size, bank capital, focus on liquidity and banking requirements are independent variables. Correlation analysis and OLS regression are used and the research period is 1381 to 1390 that the country's territory where bank branches.Our results indicate that the effect of bank size on profitability is positive and the increase in bank size on profitability is increased. Impact on the profitability of bank deposits is positive, ie increasing the profitability of bank deposits increased. Finally, the impact of bank concentration on profitability is positive. Increasing the bank's focus profitability increases. Moreover, the results adversely affect the liquidity of the index is profit. 

The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry

2020 ◽  
Vol 23 (03) ◽  
pp. 2050020 ◽  
Author(s):  
Faisal Abbas ◽  
Shahid Iqbal ◽  
Bilal Aziz
Keyword(s):  
Emerging Economies ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Association ◽  
Bank Risk ◽  
Standard Errors ◽  
Bank Capital ◽  
Short Run ◽  
The Impact

This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

scholarly journals Competition in the Georgian banking sector and its impact on the credit policy of commercial banks

2021 ◽  
Vol 342 ◽  
pp. 08003
Author(s):  
George Abuselidze ◽  
Mariam Sharabidze
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Current Situation ◽  
Competitive Environment ◽  
Credit Policy ◽  
The Impact ◽  
The Relationship

Based on the role of banking sector in the development of the country’s economy, we consider it important to study the current situation in this sector. The existence of a competitive environment ensures the efficient functioning of the banking sector. The aim of the study is to estimate the competitive environment in the banking sector, to determine the relationship between competition and interest rates. The research is based on the use of different economic models and indexes. Competition in the banking sector is studied on the example of Georgian banking sector, for that we used HHI Net Loans and H-statistic indicators. The study analyses the impact of competition in the banking sector on the net interest income and interest rate in the same sector.

The Mediating Role of Repositioning on The relationship Between Electronic Integrating Communication Marketing (E-IMC) and Loyalty

2019 ◽  
Vol 9 (1) ◽  
pp. 1-23
Author(s):  
Hussein Moselhy Syead Ahmed ◽  
Ali Ahmed Abdelkader
Keyword(s):  
Commercial Banks ◽  
Response Rate ◽  
Mental Image ◽  
Internet Service ◽  
Mediating Role ◽  
Total Response Rate ◽  
Reliable Model ◽  
The Impact ◽  
The Relationship

This article aims to determine and analyze the impact of E-IMC on improving the positioning towards commercial banks in Egypt, and loyalty as well. To accomplish these objectives, a descrptive method is used. 360 customers of commercial banks in Egypt are randomly selected, which were selected for having used the internet service of these banks. The total response rate was 86.4%. The results showed that this a statistically significant relationship between E-IMC and the mental image of the customers towards the organizations to improve their image and increase the achievement of loyalty to the brand in the commercial banks. Examining the results, a reliable model has been found in managing the mental image of the organizations with their customers.

Economics of loan growth, credit risk and bank capital in Islamic banks

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faisal Abbas ◽  
Shoaib Ali
Keyword(s):  
Credit Risk ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Bank Capital ◽  
Content Type ◽  
Loan Growth ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

PurposeThis study aims to analyze the moderating role of capital on the relationship between loan growth and credit risk for Islamic banks in the post-crisis era.Design/methodology/approachThe study used annual data of 217 Islamic banks from 38 countries and ranges from 2010–2019. The study applies a two-step system GMM method for hypotheses testing about the moderating role of bank capital on the relationship between loan growth and credit risk in Islamic banks.FindingsThe findings showed that an increase in loan growth increases the credit risk of Islamic banks, as evidenced by loan loss provisions, loan loss reserves and nonperforming loans. The results indicate that capital positively moderates the relationship between loan growth and credit risk in Islamic banking. The positive relationship between bank capital and risk-taking is in line with the “regulatory hypothesis” in banking. The findings predict lower impacts of capital on the relationship between loan growth and credit risk in the South Asian region than MENA, Africa, South, East and Central Asia regions. However, the impact of capital is higher for larger Islamic banks than medium and smaller ones.Practical implicationsThe findings of the study add value to the current debate on the role of bank capital to reduce risk-taking in Islamic banks. The study's findings have implications for policymakers, managers, especially in Islamic banking, for improving the Islamic financial system by managing the role of capital, loan growth and credit risk.Originality/valueThis is the first study to explore the moderating role of bank capital on the relationship between loan growth and credit risk in the post-crisis era, especially in Islamic banking. This is the first study in the Islamic banking context, which is providing empirical evidence for the impact of loan growth on the back looking and forward-looking proxies of credit risk under the moderating role of bank capitalization in the post-crisis era. This is the first study, which providing findings based on regions and size to compare the differences in Islamic banks for the impact of loan growth on credit risk under the moderating role of capitalization.

Does economic growth affect the relationship between banks' capital, liquidity and profitability: empirical evidence from emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faisal Abbas ◽  
Shoaib Ali ◽  
Maqsood Ahmad
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Empirical Model ◽  
Commercial Banks ◽  
Annual Data ◽  
Bank Capital ◽  
Bank Efficiency ◽  
Content Type ◽  
The Relationship

PurposeThis research explores the role of economic growth to influence the inter-relationship between capital, liquidity and profitability of commercial banks in selected asian emerging economies.Design/methodology/approachTo achieve the research purpose, an empirical model was constructed to examine the role of economic growth in the inter-relationship between banks' capital, liquidity and profitability. The empirical model was tested through two stage lease square (2SLS) regression analysis using annual data of Asian commercial banks ranges from 2011 to 2019.FindingsThe findings indicate that bank capital and liquidity are interdependent and determined simultaneously. The outcome demonstrates that the strength of the inter-relationship between banks' capital, liquidity, and profitability improves when economic growth is taken into account in the analysis. The results report that market funding, loan ratio, credit risk, bank size and bank efficiency are significant indicators to influence commercial banks' liquidity, profitability and capital in Asian emerging economies. The findings are heterogeneous across large, medium and small-sized banks in emerging economies of Asia.Practical implicationsThe results highlight that the model provides robust results with respect to sign and significance. However, the coefficient remains underestimated without incorporating economic growth, which has important implications for decision-makers and bankers.Originality/valueTo the best of authors’ knowledge, this is the first study that examines the role of economic growth to influence the inter-relationship between capital, liquidity and bank profitability in the emerging economies of Asia.

scholarly journals MEDIATING ROLE OF ETHICAL LEADERSHIP BETWEEN EMPLOYEES EMPOWERMENT AND COMPETITIVE EDGE: A CASE OF COMMERCIAL BANKS IN PAKISTAN

2021 ◽  
Vol 9 (2) ◽  
pp. 219-231
Author(s):  
Muhammad Azizullah Khan ◽  
Mahboob Ullah
Keyword(s):  
Service Quality ◽  
Ethical Leadership ◽  
Commercial Banks ◽  
Skills Training ◽  
Mediation Effect ◽  
Mediating Role ◽  
Competitive Edge ◽  
The Impact ◽  
The Relationship

Purpose of the study: The current study aimed to examine the impact of employee empowerment on reaching a better level of competitive edge through the mediating influence of ethical leadership. Methodology: Dimensions of competitive edge were employed, including (quality, responsiveness, innovation, and efficiency). A quantitative approach was adopted to attain the main objective of the study. A questionnaire was employed to collect data from 258 individuals' of Pakistani commercial banks. SPSS/ AMOS was used to screen and analyze the gathered data. Cronbach's Alpha was used to test the reliability of the study tool. Multiple regression analysis was performed to test the hypotheses of the study. Preacher and Hayes model was deployed to test the mediation effect. Principal Findings: The study's results indicated that ethical leadership mediates the relationship between empowerment and competitive edge. Besides, the study highlighted that ethical leadership influences empowerment in a way that leads to better efficiency and service quality, launching from leaderships' role in increasing awareness of service quality importance and leading employees towards being more creative and innovative. Application of this Study: The study recommended that workers in the bank sector should submit proposals that affect skills training and the expansion of their fields of empowerment in comparison with the previous stage and offer workers with proven skills a chance to engage in decision making to strengthen their skills and provide them with the ability to learn further in the field of banking. Novelty/Originality of this study: This is the first study that has analyzed the mediating role of ethical leadership between employees' empowerment and competitive edge in the context of listed Pakistani commercial Banks.

scholarly journals Assessment Of The Relationship Between Capital, Risk And Efficiency In Ghana Commercial Banking Sector

2019 ◽  
Vol 4 (6) ◽  
Author(s):  
Kong Yusheng ◽  
Samuel Asubonteng ◽  
Alex Antwi-Adjei
Keyword(s):  
Banking Sector ◽  
Commercial Banking ◽  
Bank Capital ◽  
Positive Correlation ◽  
Savings Banks ◽  
Financial Strength ◽  
Risk Appetite ◽  
Significant Difference ◽  
Cooperative Banks ◽  
The Relationship

This article analyzes the relationship between capital, risk and efficiency for a large sample of banks in Ghana between 2008 and 2016. Contrary to the American belief, we do not find a positive correlation between inefficiency and the acceptance of risk by banks. Ineffective banks in Ghana seem to have more capital and less risk. Empirical evidence of the positive correlation between capital risk (and liquidity risk) has been found, indicating that the regulator prefers to use capital to limit its risk-weighted assets. We also discovered that the financial strength of the corporate sector had a positive effect on risk appetite and the reduction of bank capital. There is no significant difference between capital, risk and efficiency in commercial banks, savings banks and cooperative banks. For cooperative banks, we find that capital is inversely proportional to risk and that inefficient banks have less capital. Some of these relationships also depend on the banks of the most efficient or efficient operators.

Peranan Whistleblowing Dalam Meningkatkan Integriti Anggota Polis Diraja Malaysia (Pdrm): Kajian Ke Atas Kontinjen Perak

Sains Insani ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 17-27
Author(s):  
Megat Ayop Megat Arifin ◽  
Abd. Halim Ahmad
Keyword(s):  
Quantitative Analysis ◽  
Demographic Factors ◽  
Positive Perception ◽  
External Threats ◽  
Positive Practices ◽  
The Impact ◽  
The Relationship

Whitsleblowing is one of the positive practices in organizations that are able to raise the level of integrity among the members of an organization. However, the roles of whistleblowing also inevitably invites a response, especially among members of the organization itself. This is because such practices are viewed as one factor that may be detrimental to the organization in addition to revealing the reporter (whistleblower) to some external threats and intimidation of discrimination within the organization. This paper is an attempt to examine the relationship between perceptions of members of the Royal Malaysian Police (RMP) Contingent of Perak through the role of whistleblowing practices to increase the perception of the integrity of the members. Next, identify the purpose of the whistleblowing and its effect on the integrity of the members of the organization. This study used a descriptive quantitative analysis to identify patterns of relationship that exists between the perception of whistleblowing practices with perceptions of increased integrity based on three basic variables of demographic factors, response to whistleblowing and the impact of making the report. The results showed that members of the Perak’s police have a positive perception of whistleblowing practices which are seen to be done in improving the integrity of the members.Keywords: whistleblowing, perception, RMP members, culture, integrity, organization, influence. ABSTRAK: Whitsleblowing merupakan salah satu amalan positif dalam organisasi yang mampu untuk meningkatkan tahap integriti ahli-ahli dalam sesebuah organisasi. Namun begitu, amalan whistleblowing juga turut tidak dapat mengelak daripada mengundang pelbagai respon khususnya dalam kalangan ahli organisasi itu sendiri. Amalan sebegini turut dilihat sebagai salah satu faktor yang boleh memudaratkan organisasi di samping mendedahkan pelapor (whistleblower) kepada beberapa bentuk ancaman ugutan dari luar dan diskriminasi dalam organisasi. Kertas ini merupakan satu upaya untuk melihat perkaitan antara persepsi anggota Polis Diraja Malaysia (PDRM) Kontinjen Perak melalui peranan amalan whistleblowing terhadap persepsi peningkatan integriti anggota. Seterusnya, mengenalpasti maksud whistleblowing dan pengaruhnya terhadap tahap integriti anggota dalam organisasi. Kajian ini menggunakan analisis kuantitatif berbentuk deskriptif bagi mengenalpasti corak hubungan yang wujud antara persepsi terhadap amalan whistleblowing dengan persepsi terhadap peningkatan integriti berdasarkan tiga pembolehubah asas iaitu faktor demografi, tanggapan terhadap whistleblowing dan kesan daripada tindakan membuat laporan. Dapatan kajian menunjukkan bahawa anggota PDRM Perak mempunyai persepsi yang positif terhadap whistleblowing yang mana ianya dilihat perlu dilaksanakan dalam meningkatkan integriti anggota.Kata kunci: whistleblowing, persepsi, amalan, anggota PDRM, budaya, integriti, organisasi, pengaruh.  

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