scholarly journals Capital Adequacy Ratio, Bank Credit Channel and Monetary Policy Effect

10.5772/66793 ◽  
2017 ◽  
Author(s):  
Li Qiong
Keyword(s):  
Monetary Policy ◽  
Capital Adequacy ◽  
Bank Credit ◽  
Credit Channel ◽  
Policy Effect ◽  
Capital Adequacy Ratio

scholarly journals Empirical Analysis of Non-Performing Loans and Liquidity of Deposit Money Banks: Nigeria Experience

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Gross Domestic Product ◽  
Capital Adequacy ◽  
Domestic Product ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
Minimum Capital Requirement ◽  
Small Quantum ◽  
Capital Adequacy Ratio ◽  
Loan Growth

Nigerian Deposit Money Banks (DMBs) tend to have suffered the plight of Non-Performing Loans (NPLs) in recent times in no small quantum. Consequently, a large chunk of them have had to increase their loan loss provisions and this may dwindle their liquidity. This study investigates the effect of non-performing loans on liquidity of Deposit Money Banks (DMBs) in Nigeria. A panel regression analysis was performed on a data of 15 quoted DMBs from 2009 to 2019, in order to examine the correlation between the explained variable (banks’ liquidity) and Non-Performing Loans (NPL) while other explanatory variables- Capital Adequacy Ratio (CAR), Bank Size (BS), Loan Growth (LG), Monetary Policy Rate (MPR), Gross Domestic Product (GDP) and Inflation were taken into consideration. Data were extracted from the banks’ yearly financial statements and the World Bank Financial Statistics. Based on the empirical findings, the study found only four variables-Non Performing Loans, Capital Adequacy Ratio, Bank Size and Inflation significantly related at 5% significant level with banks’ liquidity while the other three; Gross Domestic Product, Loan Growth and Monetary Policy Rate were identified as insignificant. The finding also revealed that NPLs has negative effect on banks’ liquidity while CAR, BS and INF showed positive relationship. The study recommends strict compliance of banks with the NPLs tolerable limit set by the Central bank. It also suggests that the CBN take proactive measure to ensure the banks’ compliance with the minimum capital requirement. Keywords: Banks, Financial Institutions, Liquidity, Non-Performing Loans, Performance

scholarly journals The Determinants of Non-Performing Loans in the MINT Economies

2016 ◽  
Vol 8 (5(J)) ◽  
pp. 39-55
Author(s):  
Akinola Ezekiel Morakinyo ◽  
Mabutho Sibanda
Keyword(s):  
Nominal Exchange Rate ◽  
Capital Adequacy ◽  
Bank Credit ◽  
Return On Assets ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Significant Relationships ◽  
Strong Positive Relationship ◽  
Capital Adequacy Ratio

This paper investigates the major determinants of non-performing loans in the MINT (Mexico, Indonesia, Nigeria and Turkey) economies. Identifying major determinants of non-performing loans, which are observed to be growing in these countries in recent time, will also guide policy and forecasting future levels that will be useful for pre-emptive policies and actions. It uses static panel data and dynamic panel model analyses. Evidence suggests that in the four economies, capital adequacy ratio, liquidity ratio, total bank credit andreturn on assets are significant bank-specific determinants of non-performing loans. Also, while the return on assets, liquidity ratio and capital adequacy ratioshow a negative and significant relationship with non-performing loans, nominal exchange rate, money supply growth rate, total bank credit and lending rate show positive and very significant relationships with non-performing loans. Finally, corruption, an institutional variable, shows a very strong positive relationship with non-performing loans.

scholarly journals The Role of Monetary Policy in Activating the Bank Credit Channel: Iraq Case Study

2021 ◽  
Vol 11 (4) ◽  
pp. 4990-5009
Author(s):  
Mustafa Mohammed Sabri
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Central Bank ◽  
Commercial Banks ◽  
Foreign Currency ◽  
Active Role ◽  
Bank Credit ◽  
Credit Channel

The main objective of the research is to find out how monetary policy has influenced the support and promotion of bank credit to promote the economy by creating jobs and addressing unemployment, where the central bank after2003 played a leading and active role in supporting commercial banks and promoting bank credit ‘One of the central bank's important objectives is to stabilize the overall level of prices set out in law No 56 For the year ( ( 2004 Article (3) The Central Bank of Iraq has used the policy of stability in the exchange rate of the dinar as a key tool in stabilizing prices in Iraq through the window of selling foreign currency.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PENYALURAN KREDIT PERBANKAN PADA BANK UMUM DI BURSA EFEK INDONESIA

2014 ◽  
Vol 4 (1) ◽  
pp. 9
Author(s):  
Septiana Icha Pratiwi ◽  
Tina Sulistiyani
Keyword(s):  
Empirical Evidence ◽  
Capital Adequacy ◽  
Third Party ◽  
Bank Credit ◽  
Return On Assets ◽  
Factors Affecting ◽  
Independent Variables ◽  
Capital Adequacy Ratio ◽  
Dependent Variables ◽  
Research Studies

This research is aimed to obtain empirical evidence on the factors affecting the distribution of bank credit. There are many factors affecting the distribution of bank credit. However, this research was only limited by dominant factors affecting the distribution of bank credit obtained from bank credit theories and the results from previous research studies. Therefore, factors which were the selected independent variables in this research were Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Return On Assets (ROA), and Loan to Deposit Ratio (LDR). While the dependent variables were the distribution of bank credit which was proxied by Loan to Asset Ratio (LAR) variable. The results of the research indicates that simultaneously, the variables of DPK, CAR, NPL, ROA, dan LDR significantly affect  the distribution of bank credit in the period 2010-2012. While partially, a result was obtained that DPK, NPL, and LDR variables significantly affect the distribution of bank credit. Meanwhile CAR and ROA variables do no significantly affect the distribution of bank credit in the period 2010-2012

scholarly journals Does Monetary Policy Influence the Profitability of Banks in New Zealand?

2020 ◽  
Vol 8 (2) ◽  
pp. 35 ◽  
Author(s):  
Vijay Kumar ◽  
Sanjeev Acharya ◽  
Ly T. H. Ho
Keyword(s):  
Monetary Policy ◽  
New Zealand ◽  
Interest Rates ◽  
Negative Impact ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Capital Adequacy ◽  
Bank Profitability ◽  
Capital Adequacy Ratio ◽  
Income Ratio

The study investigates the relationship between monetary policy and bank profitability in New Zealand using the generalized method of moments (GMM) estimator. Our sample comprises 19 banks from New Zealand over the period 2006–2018. Our results suggest that an increase in short-term rate leads to an increase in the profitability of banks, while an increase in long-term interest rates reduces bank profitability. In addition to monetary policy variables, capital adequacy ratio, non-performing loan ratio, and cost to income ratio are also important determinants of the profitability of banks in New Zealand. Capital adequacy ratio has a positive impact on bank profitability, while non-performing loan ratio and cost to income ratio have a negative impact on bank profitability.

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