Financial Performance In Banking Sector
A number of studies have been conducted in India and abroad to study the various aspects of performance measurement in the banking sector. These studies have been reviewed critically with a view to understand the objectives of these studies, research methodology, research findings, etc. and to identify the gap that exists in the literature in this area. The analysis of banking performance has received a great deal of attention in the banking literature. A common framework used by supervisors is the CAMELS framework, which uses basic financial ratios to help evaluate a bank’s performance (Yue, 1992 various studies includes the use of financial ratios to analysis the banks’ performance appraisal, including Beaver (1966), Atman (1968), Maishanu …show more content…
Siddique and Islam (2001) in the above research the author states that the all commercial banks of Bangladesh are performed sound and directly contributed to the economic development of that country. The author also pointed “the average profitability of all Bangladeshi Banks collectively was 0.09% during 1980 to 1995 which means that a profit of Tk.0.09 was earned by utilizing assets of Tk.100 in every aspect of profit;” He also states that the banking sector contributes to the country economy as well as to the specific organization. In spite of the overall growth of the whole banking sector, the performance of all banks were not equally …show more content…
Godlewski (2003) in this research, the author tested the validity of the CAMEL rating model for banks bankruptcy reforms in the growing markets. He focused clearly on using a rational model applies on the list of defaulted banks in the growing markets.
10. Said and Saucier (2003) In this research the author studied the liquidity position , smoothness ,solvency and productivity of the Japanese Banks by using CAMEL rating model, for a selected Japanese banks for the period of 1993-1999, and the researcher also evaluated the capital adequacy, assets quality and management capacity, earnings ability and liquidity position of the sampled banks.
11. Qamar (2003) in this research, the author evaluate the differences of endowment factor, risk factor, sales diversification, profitability, and efficiency which may have existed among the 100 scheduled commercial banks, divided into three groups for the year from 2000 to 2001. His study concluded that the public sector banks were better performer in terms of their assets quality, share capital and shareholders fund than other banks, on the other hand foreign banks and old private sector banks were operated at a high capitalization
Macy's Comprehensive Analysis
1077 Words | 5 PagesComprehensive Analysis Liquidity Liquidity is defined as the ability to convert assets quickly into to cash (Liquidity, 2014). A good standing liquidity is good for companies as well as investors and lenders to the company. For the company it’s a great indication as to whether it will meet short term maturing obligations or not. For creditors and investors, a good standing liquidity portrays the ability of how quick a company can pay off debts. Current Ratio (Current assets ÷ Current liabilities)
Bus 601 Competitive Analysis Paper
866 Words | 4 PagesBUS 602 CLA1 Competitive Analysis Le Yang Westcliff University Abstract The report is about basic knowledge of bankruptcy of United States. It includes introduction of major types of bankruptcy, as well as the purpose and procedures of these types. There is some explanation of what will happened during bankruptcy.
Acadia Healthcare Company Financial Analysis
835 Words | 4 PagesMore liquidity is what manger and shareholders are looking for to determine whether the company has the ability to cover the short-term liabilities. The current ratio value for the year 2013 calculated in comparison to 2012 shows decrease in liabilities. To measure the debt-equity rate of the company, show if a business is using the fitting amount of debt financing (Parrino, Kidwell, Bates, 2012). Greater potential on return and greater bankruptcy risk are shown by higher ratios (Parrino, Kidwell, Bates, 2012). The debt interest rate in 2012 was 15% information revealed the SG&A expenses ratio to income is blank unlike the net year which, is nearly 40% for 2013, long-term debt from the year 2012 to year 2013 has nearly increased by
Blackwell Automotive Company Ratio Analysis
1150 Words | 5 PagesRatio Analysis of Blackwell Automotive Company BN160722 BUS 550 Financial Management Professor: Dr. Stephen Hawn Westcliff University 19/02/2017 Abstract This study is conducted to analyze the ratio analysis of Blackwell Automotive Company. This study shows the calculation of liquidity ratio of Blackwell Automotive Company in terms of current ratio and quick ratio. This study is conducted to analyze the days’ sales outstanding ratio, total assets turnover ratio and fixed assets turnover ratio of Blackwell Automotive Company with the help of its balance sheet provided.
Objective Of Financial Statement Analysis
1195 Words | 5 PagesThe bankruptcy of an entity has significant impact on a broad part of society. Investors lose their funds while suppliers and other creditors are subject to losses. In many cases, the bankruptcy of a large corporation may lead other associated entities to bankruptcy due to the interdependencies which will eventually cause a domino of bankruptcy. Banks may suffer losses, especially in the occasion where the entity has extended debt facilities and may cause the entire financial system to falter. In addition to the above, the bankruptcy of an entity entails job losses, increase of unemployment rate, decrease in consumer spending and loss of government revenues from contributions and taxes.
Altman's Bankruptcy Model
1243 Words | 5 PagesStatistical Technique as a factor affecting the power of the predictive models Jeroen (2013) suggests that the statistical technique has an effect on the predictive power of the models. A study with one bankruptcy prediction model and multiple statistical techniques would allow to a more detailed analysis about the effects of these statistical techniques. Differences between the accuracy may imply that a specific bankruptcy prediction model is preferred in a specific economic period. According to M. Adnan Aziz and Humayon A. Dar, a doctoral researcher and a lecturer, many different models have been used to predict bankruptcy.
Goldratt's Framework-The Theory Of Constraints
1190 Words | 5 Pages(2008) have examined in his paper the major elements of the Goldratt's framework - the Theory of Constraints (TOC) - in the banking sector, and examines the factors involved in the decision to adopt the TOC by companies in this sector. Author has done a deep literature review, analyzing similar cases that apply the Goldratt's framework in services and in manufacturing and the several views of its components; Author has focused in formulating a framework specifically for the banking system. The approach of the study is qualitative and Quantitative; the study infers that the main factors that influence the decision to adopt the TOC are the nature and the characteristics of the banking service, the attitude towards change, the leadership and the commitment of the entire institution. They have highlighted in this article, through the location of the constraints and development of practical measurement to facilitate the banking process improvements, banks can improve resource utilization, revenues and employee
The Balanced Scorecard: Theory And Management Approach
1649 Words | 7 Pages7.1. Organizational Performance using (The Balanced Scorecard): In the past, most organizations relied largely on financial accounting measures as the primary basis for measuring organizational performance, but today 's companies realize that a balanced view of both financial and operational measures are needed for successful organizational control. Organizational performance defined as the ability of an organization to attain its goals and objectives by optimum utiliza¬tion of resources (Nayak & Sahoo, 2015).
Hot Spots Case Study
1530 Words | 7 PagesHis text first highlights the limitations of performance measurement tools that are excessively focused on financials. The Balanced Scorecard is strategic business system that is critical for success in the fast changing 21st Century business environment. The Balanced Scorecard is a multidimensional tool that addresses the shortcomings of the financial measurement tools. Non-financial measures provide strategic information and projections that can be used anticipate and influence future results, capturing complexity and values contained in the firm (Gomes et al., 2013). The Balanced Scorecard can be implemented in line with organizational culture and helps the firm to differentiate itself from competition.
Personal Bankruptcy
1176 Words | 5 PagesThis paper also discusses some important empirical research on personal bankruptcy. 1. INTRODUCTION
Tesco Accounting Report
1656 Words | 7 PagesHowever, financial performance subsists with different levels of organisation, which is concerned with measuring financial performance of organisation. These measures are categorised into four that includes profitability, gearing, liquidity or working capital, and investor ratios. However, the financial plan of organisation is associated with operating plan since financial plan involves revenue and expenses for the activities that are linked with each objective. Hence, the main reason, in monitoring financial plan is to audit the committee (Hasan, 2011).
Operational Risk Management System
9763 Words | 40 PagesVarious articles appeared in different journals on various aspects of operational risk but they are restrictive in nature and do not give a comprehensive picture. A brief review of some of the relevant literature is as under: Adrian (1999) examined the use of advanced probability models to evaluate risks and justify the decisions where reliable data is available, e.g. reinsurance, money markets and nuclear energy. In the first part, observations are made about the factors shaping operational risk management: the increasing shift of influence from tangible to intangible variables; the intuitive manner in which most operational risk is managed;
Strengths And Weaknesses Of The Banking Industry
976 Words | 4 PagesI would frame the banking as an industry that is built on trust. Trust that is reaffirmed by the governments, and regulators. Banks have an imperative role in our economic growth, and development. Correspondingly, without the bank industry, there is no industry to replace them as the conduit for social and economic policy. Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect.
Pestel Analysis Of Banking Industry
1748 Words | 7 Pages2.0 SITUATION ANALYSIS Below are Malaysian banking industry’s external environment assessment using Porter’s 5 Forces Analysis. For the purpose of this assessment, 3 top-in-the-league existing domestic banking groups in terms of asset size have been chosen i.e. Maybank, CIMB, and PublicBank. All 8 domestic banking groups have operations in all the 3 segments of banking businesses namely Commercial, Islamic, and Investment bank. Upon analyzing and assessing their immediate surroundings, the banking groups recognize the following important factors that would impact on their competitiveness. THREAT OF RIVALRY AMONG EXISTING BANKS • Too many players in the industry; Each banking group has to contend with 7 other domestic banking groups and 30 other banking intermediaries both local and foreign, comprising 19 Commercial, 8 Islamic, and 3 Investment banks.
Systemic Risk Definition
8893 Words | 36 PagesTheir study covers period from 1986 to 2010, of market data on daily market equity data, which they obtain from CRSP. They find that a higher volatility, repo spread and lower market return to be the main indicators of a financial crisis, and any organization involved in an environment full of these market variable to be considered as SIFI. In their study they compared the VaR of each institution against the CoVaR which implies when the institution fails, and conclude that they are very different and authorities need to focus on the VaR of the companies which doesn’t reflect the spill over effect, rather they need to focus and measure the CoVaR. By associating their CoVaR measure with balance sheet data, they claim they were able to predict the occurrence of the financial crisis in 2007. Using the combination of balance sheet data and their SIFI identification methodology, they find that organizations having higher leverage (more debt), more maturity mismatch and that are big in size, to contribute a lot to the systemic
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