The Relative Importance of Bank-Specific Factors for Bank Profitability in Developed and Emerging Economies

2010 ◽  
Author(s):  
Olga Uzhegova
Keyword(s):  
Emerging Economies ◽  
Relative Importance ◽  
Bank Profitability ◽  
Specific Factors ◽  
Bank Specific Factors

scholarly journals BANK SPECIFIC AND MACRO-ECONOMIC DETERMINANTS OF THE UNITED ARAB EMIRATES COMMERCIAL BANKS PROFITABILITY: A PANEL DATA ANALYSIS

2020 ◽  
Vol 8 (10) ◽  
pp. 661-677
Author(s):  
Jamil Salem Al Zaidanin ◽  
Keyword(s):  
United Arab Emirates ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Economic Determinants ◽  
Return On Equity ◽  
Specific Factors ◽  
Bank Specific Factors

This study attempts to identify the Bank Specific and Macro-economic Determinants of The United Arab Emirates Commercial Banks Profitability measured by Return on Assets, Return on Equity and Net Interest Margin. The study uses bank-specificand microeconomic factors as independentvariables. The bank-specific factors include bank size, capital adequacy, assets quality, liquidity, deposits, diversification ,business mix, and efficiency, while the macroeconomic factors include real Gross Domestic Product growth, Inflation Rate, and Real Interest Rate.Regression models were used to relate bank profitability ratios to the independent variables built on panel data for the period 2013-2019 of sixteen commercial banks operating in the United Arab Emirates.The results of the study show thatassetsize, liquidity, off-balance sheet activities, and diversification have significant impact on profitability as measured by theNet Interest Margin. In addition, loans under follow-up to total loans, and managerial efficiency are found to behighlysignificantvariables of profitability in the context of the United Arab Emirates commercial banks as measured by Return on Assets and Return on Equity. Furthermore, diversification has a significant impact on profitability as measured by Return on Assets. The remaining bank-specific factors (capital adequacy, loans to total assets, liquidity, deposits to assets ratio, and operating expenses to total assets ratio) and macroeconomic factors have no significant effect on bank profitability. The results of the study suggest that banks can improve their profitability through maintaining high operating income, decreasing the size of non-performing loans, full utilization of liquid assets, more concentration on the main activities, efficiently managing their operating expenses, and taking advantage of the Gross Domestic Productgrowth , inflation and Interest Rate changes to improve the banks performance and profitability. In addition, it is recommended to make further studies on the banks performance with an expanded scope which is tobe extended to other industries.

scholarly journals Determinants of bank profitability during oil price decline

2022 ◽  
Vol 10 (8) ◽  
pp. 200-217
Author(s):  
Laila Saif Hamed Al-Harthy ◽  
Revenio Jalagat, Jr. ◽  
Karima Sayari
Keyword(s):  
Significant Relationship ◽  
Pearson Correlation ◽  
Oil Price ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Price Decline ◽  
Net Profit ◽  
Specific Factors ◽  
Bank Specific Factors

This study examines the influence of macroeconomic factors, namely Inflation, Gross Domestic Production (G.D.P.) and changes in oil price and Bank-Specific Factors such as capital, asset size, liquidity risk, loan and deposit on bank profitability as measured by return on equity (R.O.E.) and net profit ratio (NPR) during the period of oil price decline, 2013-2017. The top 7 commercial banks were chosen as a sample of the study based on the availability of the data and the possible influence it can contribute to representing Oman's banking industry. The quantitative approach utilized appropriate statistical tools to analyze and interpret the secondary data gathered, including descriptive statistics, panel regression, Pearson correlation, and correlation matrix. Key findings of the study revealed no significant relationship between macroeconomic factors and the return on equity. There is also no significant relationship between macroeconomic factors and the net profit ratio. On the other hand, bank-specific factors significantly correlate return on equity and the net profit ratio. The study's findings contribute to the bank's management, economic policymakers, a research body, and academia in distinguishing the best indicator for a bank's profitability influenced by macroeconomic and bank-specific factors.

scholarly journals Does Bank Size and Operational Efficiency Matters? An Impact of Financial Gearing and Asset Management on Islamic Bank's Performance in Pakistan

2017 ◽  
Vol 3 (1) ◽  
pp. 63-78
Author(s):  
Rashid Khalil ◽  
Muhammad Azhar Khalil
Keyword(s):  
Asset Management ◽  
Secondary Data ◽  
Least Square ◽  
Operating Efficiency ◽  
Islamic Banks ◽  
Bank Profitability ◽  
Ordinary Least Square ◽  
Specific Factors ◽  
The Impact ◽  
Bank Specific Factors

Purpose: The persistent growth of Islamic banks has been the distinction of the Muslim world financial background in the 1980s and 1990s. Through a network that spans more than 62 countries and an asset base of more than $169 billion; Islamic banks are now performing a progressively more significant role in their particular economies. The core objective of this study is to find the impact of some of the key bank-specific factors (internal determinants) on the profitability of Islamic banks in Pakistan. Factors that opted in this study are bank size, operating efficiency, gearing ratio and asset management. Secondary data was obtained from 5 Islamic banks in Pakistan from year 2007 to 2015. The Ordinary Least Square (OLS) was used to analyze the empirical findings. The estimation results show that bank size significantly and positively influence the bank profitability while the asset management inversely affects the bank profitability. For future studies, it is recommended that more sample size and determinant factors can be included in determining the impact on bank's profitability.

Factors Affecting NPAs in Indian Banking Sector

Paradigm ◽  
2021 ◽  
Vol 25 (2) ◽  
pp. 181-193
Author(s):  
Nitya Garg
Keyword(s):  
Regression Model ◽  
Multiple Regression ◽  
Banking Sector ◽  
Relative Weight ◽  
Multiple Regression Model ◽  
Factors Affecting ◽  
Weight Analysis ◽  
Specific Factors ◽  
Relative Weight Analysis ◽  
Bank Specific Factors

Banking sector is the backbone of any economy, so it is necessary to focus on its performance which is largely affected by its non-performing assets (NPAs). In the year 2018–2019, NPA of scheduled banks was Rs 355,076 Crore which is 3.7% of net advances. The purpose of this study is to identify the determinants based on analysis from previous literatures, and majorly macroeconomic and bank specific factors which are affecting NPAs using the relative weight analysis and to frame a model to predict future NPAs using multiple regression model using SPSS. The study also attempts to focus on actions and remedies that banks should make to control future NPAs. Findings of the study will act as a scaffolding for financial analysts and policymakers to prevent the conversion of its performing assets into NPAs and also help in proper management of banks and also in the recovery of economy.

Handbook of BRICS and Emerging Economies

2020 ◽  
Keyword(s):  
Emerging Economies ◽  
Relative Importance ◽  
Income Differentials ◽  
Policy Interventions ◽  
The Poor ◽  
Mineral Wealth ◽  
Mineral Production

There are considerable variations in the extent to which growth has improved the position of the poor. In all cases except one the incomes of the poorest have improved over the periods for which data on distribution are available. However, in all cases there is some evidence that inequality has tended to increase. The relative importance of mineral production appears to be associated with higher levels of inequality. An important question for mineral-exporting countries is how to ensure that national mineral wealth is used to support pro-poor investment. In view of the observed tendency for decreases in the relative importance of agriculture to exacerbate income differentials, some pro-poor policy interventions are required to redress the balance.

scholarly journals The Impact of Specific Banking, Industrial and Macroeconomic Factors on Bank Profitability: Evidence from the Albanian Banking System

2019 ◽  
Vol 9 (2) ◽  
pp. 182
Author(s):  
Gazmend Nure
Keyword(s):  
Banking System ◽  
Short Term ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Specific Factors ◽  
The Impact ◽  
Research Studies ◽  
Bank Profits

This research studies the factors that affect the profitability of the banking system in Albania during the period 2012-2017.The specific factors taken in the study are divided into two groups: the specific banking factors (internal), and the macroeconomic factors. The dependent variable used in the study, to measure Bank Profits, is Return on Equity (ROE). The empirical findings show that, when ROE is used as a dependent variable, all bank specific variables are negatively and significantly related to profitability. That being said, there is the exception of the liquidity factor (Liquid assets over short term liabilities) and bank size which has a positive.

Patient Information on Evidence and Clinical Effectiveness of Psychotherapy

2020 ◽  
Author(s):  
Charlotte Blease ◽  
John M. Kelley ◽  
Manuel Trachsel
Keyword(s):  
Research Evidence ◽  
Treatment Options ◽  
Common Factors ◽  
Psychotherapy Research ◽  
Clinical Effectiveness ◽  
Evidence Base ◽  
Relative Importance ◽  
Considerable Controversy ◽  
Specific Factors ◽  
The Common

This chapter focuses on what information should be provided to patients about the evidence base supporting the clinical effectiveness of psychotherapy. In particular, the authors consider whether research on the relative efficacy of different forms of psychotherapy should be provided to patients, as well as whether patients should be provided with information on the relative importance of common factors versus specific factors as the causal agents of clinical improvement. After a critical review and discussion of the relatively few scholarly papers that have previously addressed this question, the authors conclude that patients should be provided with an honest, transparent, and impartial summary of the evidence related to their treatment options including information about the common factors. The authors offer this conclusion even while acknowledging that considerable controversy persists about how to interpret the psychotherapy research evidence base. Finally, the authors strongly support continued research into these questions, especially given the relatively limited scholarly attention they have received to date.

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