scholarly journals Bank Interest Margin and Default Risk under Basel III Capped Capital Adequacy Accord and Regulatory Deposit Insurance Fund Protection

2014 ◽  
Vol 6 (1) ◽  
Author(s):  
Chuen-Ping Chang ◽  
Shi Chen
Keyword(s):  
Default Risk ◽  
Deposit Insurance ◽  
Capital Adequacy ◽  
Insurance Fund ◽  
Basel Iii ◽  
Interest Margin

scholarly journals The Determinants the Rate of Return on Deposits in Islamic Banks

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Ahmad Al-Harbi
Keyword(s):  
Interest Rates ◽  
Default Risk ◽  
Deposit Insurance ◽  
Fixed Effect Model ◽  
Capital Adequacy ◽  
Rate Of Return ◽  
Islamic Banks ◽  
Factors Affecting ◽  
Positive Effects ◽  
Almost All

This study aims to identify the determinates of the rate of return on deposits in Islamic banks. The study, according to the best of my knowledge, is the first study to investigate the factors affecting the rate of return in Islamic banks using cross-country data with a large sample of banks and for a prolonged period. To achieve its aim, the author used data from almost all Islamic banks in the world for a 20-year period (1989-2008). The data were analyzed using a two-way fixed-effect model. The empirical results demonstrate that capital adequacy (default risk), credit risk, age, economic growth, and concentration significantly and negatively influenced the return on deposits in Islamic banks. The results also suggest that foreign ownership, size, inflation, and oil prices had significant and positive effects on the rate of return. Moreover, the results indicated that deposit insurance (positive), interest rates (positive), and deposit growth (negative) are not determinants of the rate of return in Islamic banks.  

Kinerja Rasio Keuangan Perbankan Islam Dan Konvensional: Studi Komparatif

Liquidity ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 13-20
Author(s):  
Amrizal Amrizal
Keyword(s):  
Annual Report ◽  
Capital Adequacy ◽  
Average Increase ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

The article focuses to analyze finance ratio consist of Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM) Capital Adequacy Ratio (CAR) except Earnings before Interest Tax (EBIT). The research is conducted to three conventional banking (BNI 46, Mandiri and BRI) and three syariah banking (Bank Muamalat Indonesia, Bank Mega Syaria and Bank Syariah Mandiri) for annual report periods 2007 to 2011. The result shows, the average increase EBIT to conventional banking groups during period 2007 to 2011 are 1.91% while the average EBIT to syariah banking groups are 1.53%. The average of ROA to conventional banking groups are 3.01% while the average ROA to syariah banking groups are 1.99%. The average of ROE to conventional banking groups is 24.19% while the average of ROE to syariah banking groups is 33.31%. The average of NIM to conventional banking groups during period 2007 to 2011 are 7.08% while the average of NIM to syariah banking groups during period 2007 to 2011 are 8.14%. The average of CAR to conventional banking groups is 15.63%, while the average of CAR to syariah banking groups during the period are 12.19%.

Basel III: In quest for criteria and scenarios of the banking regulation reform advancement

2016 ◽  
pp. 77-93 ◽  
Author(s):  
E. Dzhagityan
Keyword(s):  
Financial Regulation ◽  
Cost Optimization ◽  
Spillover Effect ◽  
Regulatory Reform ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Eurasian Economic Union ◽  
Downward Pressure ◽  
Crisis Recovery

The article looks into the spillover effect of the sweeping overhaul of financial regulation, also known as Basel III, for credit institutions. We found that new standards of capital adequacy will inevitably put downward pressure on ROE that in turn will further diminish post-crisis recovery of the banking industry. Under these circumstances, resilience of systemically important banks could be maintained through cost optimization, repricing, and return to homogeneity of their operating models, while application of macroprudential regulation by embedding it into new regulatory paradigm would minimize the effect of risk multiplication at micro level. Based on the research we develop recommendations for financial regulatory reform in Russia and for shaping integrated banking regulation in the Eurasian Economic Union (EAEU).

Analysis of default risk in microfinance institutions under the Basel III framework

2021 ◽  
Author(s):  
Maria Patricia Durango‐Gutiérrez ◽  
Juan Lara‐Rubio ◽  
Andrés Navarro‐Galera
Keyword(s):  
Default Risk ◽  
Basel Iii ◽  
Microfinance Institutions

scholarly journals Capital requirements, risk-taking and welfare in a growing economy

2021 ◽  
Author(s):  
Pierre-Richard Agénor ◽  
Luiz A. Pereira da Silva
Keyword(s):  
Risk Taking ◽  
Default Risk ◽  
Limited Liability ◽  
Capital Requirements ◽  
Optimal Choice ◽  
Capital Adequacy ◽  
Financial Supervision ◽  
Capital Adequacy Ratio ◽  
Monitoring Effort ◽  
Growing Economy

AbstractThe effects of capital requirements on risk-taking and welfare are studied in an overlapping generations model of endogenous growth with banking, limited liability, and government guarantees. Capital producers face a choice between a safe technology and a risky, more productive but socially inefficient, technology. Bank risk-taking is endogenous. As a result of a skin in the game effect—motivated either as an aggregate externality, or as the outcome of the optimal choice of monitoring effort by individual banks—default risk is inversely related to the capital adequacy ratio. Numerical simulations show that in an equilibrium where banks extend both safe and risky loans, the skin in the game effect must be sufficiently strong for a welfare-maximizing regulatory policy to exist. These results remain qualitatively similar with endogenous monitoring costs and a strong effect of monitoring on entrepreneurial moral hazard. However, numerical experiments also suggest that the optimal capital adequacy ratio may be too high in practice and may require concomitantly a broadening of the perimeter of regulation and a strengthening of financial supervision to prevent disintermediation and distortions in financial markets.

Pengaruh Rasio Keuangan terhadap Profitabilitas pada Perusahaan

2021 ◽  
Vol 1 (1) ◽  
pp. 21-29
Author(s):  
Amalia Amanda Hidayah ◽  
Eti Kurniati ◽  
Farid H. Badruzzaman
Keyword(s):  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Analysis Techniques ◽  
Operational Costs ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Negative Effect ◽  
Positive Effect ◽  
Interest Margin

Abstract. This study used a sample of 6 companies. The research objective was to determine the effect of Non Performing Loans (NPL), Operational Costs on Operational Income (OCOI), Net Interest Margin (NIM), Loan to Deposits Ratio ( LDR) and Capital Adequacy Ratio (CAR) to profitability (ROA). Problem solving using multiple linear regression analysis techniques. Based on the analysis, it is known that NPL and LDR have a significant negative effect on profitability (ROA), while CAR have a significant positive effect on profitability (ROA). Abstrak. Penelitian ini menggunakan sampel sebanyak 6 perusahaan. Tujuan penelitian untuk mengetahui pengaruh Non Performing Loan (NPL), Biaya Operasional terhadap Pendapatan Operasional (BOPO), Net Interest Margin (NIM), Loan to Deposits Ratio (LDR) dan Capital Adequacy Ratio (CAR) terhadap profitabilitas (ROA). Pemecahan masalah menggunakan teknik analisis regresi linier berganda. Berdasarkan hasil analisis maka diketahui bahwa NPL dan LDR berpengaruh negatif signifikan terhadap profitabilitas (ROA), sedangkan CAR berpengaruh positif signifikan terhadap profitabilitas (ROA).

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