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In this study we examine the determinants of the capital adequacy ratios of the US financial institutions over the period 2012-2017. Using a dataset of 2135 bank-year observations, results show that financial institutions with high operating expenses as a percentage of revenues have lower capital adequacy ratios. This is an indication that bank ine...
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Aim of this study is to provide the information to the bankers, government authorities, employees and the investor of the financial institutions about the impact of the merger on the performance of the banks. For this purpose, financial ratios such as the liquidity ratio, loan to deposit ratios are measured to see the short term paying capacity of...
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... This aligns with Dewi and Yadnya's research [2], which found that bank size has a significant effect on CAR. However, this contrasts with Charitou's research [3], which states that bank size has no effect on CAR. ...
This study aims to determine the effect of bank size, loan to deposit ratio, operating expenses on operating income, return on assets and non-performing loans on capital adequacy ratio. This research was conducted at commercial banks listed on the Indonesia Stock Exchange for the period 2017-2022. The population in this study were 46 commercial banks. The sampling technique used in this study was purposive sampling, thus the sample used was 39 samples. The data were analyzed using panel data regression. The results showed that bank size has a positive and significant effect on capital adequacy ratio, loan to deposit ratio has a negative and significant effect on capital adequacy ratio, operating expenses operating income has a positive and significant effect on capital adequacy ratio, return on assets has no effect on capital adequacy and non-performing loans have no effect on capital adequacy ratio.
This article studies the impact of factors on the capital adequacy ratio (CAR) of commercial banks in Vietnam. The authors use the Bayesian regression method via Gibbs sampling. The data used in the study is secondary sources from the financial statements of 30 Vietnamese commercial banks and the General Statistics Office of Vietnam for the period 2012–2018. The research results show that bank loan, loan loss provision, liquid assets, profitability are the factors that negatively affect CAR. On the other hand, factors that have a positive impact on bank CAR are bank size, inflation, and GDP growth.KeywordsBayesianCapital adequacy ratioCommercial bank
This paper analyzes the impact of CRAMEL model on commercial banks financial performance working in Pakistan. Firm financial performance used as dependent variable e.g. ROA, ROE and TQ whereas Capital Adequacy, Resource Allocation, Asset Quality, Management Efficiency, Earning Profitability and Liquidity were used as independent variables. Panel data was analyzed through ordinary least square, fixed effect and random effect models. Secondary data of twenty listed commercial banks on Pakistan stock exchange are used from the period of 2008 to 2017. Result of fixed effect model provided significant positive relationship among CA, RA and ROA, ROE, whereas EP and LIQ have substantial negative association with ROA and ROE. There is insignificant relation of AQ and EP with ROA and ROE. Furthermore, EP has substantial positive association with Tobin's Q whereas RA, ME and LIQ has substantial negative relation with Tobin's Q. Lastly CA and AQ have insignificant impact on Tobin's Q.
