Browsing by Subject "Capital adequacy ratio"
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Item A Comparative Study of Financial Performance of Nepal Investment Bank Ltd. & Standard Chartered Bank Nepal Ltd(Faculty of Management, 2011-03) Batajoo, MinuNot availableItem Credit risk management & its impact on the profitability of commercial banks in Nepal(Department of Management, 2023) Maharjan, ReenaThis study explores the relationship between credit risk management and the profitability of Nepalese commercial banks. The dependent variable is decided to be the profitability of return on assets (ROA). We take the Capital Adequacy Ratio (CAR), Non-Performing Loan Ratio (NPLR), Credit to Deposit Ratio (CDR), and Management Quality Ratio (MQR) into account as independent variables. The data was taken from b Bank's annual reports from a few particular commercial banks. The survey's foundation is made up of 35 samples drawn from five Nepalese commercial banks. Some diagnostic tests utilizing descriptive statistics and correlation analysis were offered if the linear regression model assumption was made. Regression models are anticipated to be used to examine the significance and impact of credit risk management on profitability in Nepalese commercial banks. The outcome demonstrates that return on assets and return on assets are favorably correlated with capital adequacy ratio and management quality ratio. It suggests that the return on assets would be higher the higher the capital adequacy ratio. In a same vein, higher management quality ratios result in higher return on assets. The findings also showed a negative correlation between the non-performing loan ratio and return on assets, indicating that a rise in the non-performing loan ratio is associated with a fall in both return on equity and return on assets. The analysis revealed that the R-square value was 0.60, indicating that the influence of the independent variables was responsible for 60% of the overall variation in the value of ROA. The corrected R-square value was 0.590, indicating a 59 percent overall correlation between the independent variables and the dependent variable ROA. The beta coefficient is positive for the Capital Adequacy Ratio (CAR), Credit to Deposit Ratio (CDR), Management Quality Ratio (MQR), and Bank Profitability, but the beta coefficient is negative for the Non-Performing Loan Ratio (NPLR) and Bank Performance. At the 1% level of significance, the beta coefficient is significant for the Capital Adequacy Ratio (CAR), Non-Performing Loan Ratio (NPLR), and Management Quality Ratio (MQR). However, it has no bearing on the Credit to Deposit Ratio (CDR).Item Impact of credit performance on the profitability of commercial banks in Nepal(Department of Management, 2022) Tamang, BimalThe main purpose of the study was to examine the impact of credit performance on the profitability of commercial banks in Nepal. The study variables were Credit deposit ratio, Non-performing loan and Credit adequacy as Independent variable and profitability indicators Return on equity (ROE) and Earning per share (EPS) as dependent variable. The study used quantitative research approach and secondary financial data for the period covering 2011/12-2020/21 since implementation of core banking system to examine the financial impact of nonperforming loan on bank’s performance. Descriptive and explanatory research design was employed and data were analyzed using descriptive statistics and multiple linear regression models by using SPSS software. . Credit loans is one of the key sources of income of commercial banks, therefore managing the risk related to credit greatly impacts the bank’s profitability. Based on the analysis result the Commercial Bank enhance current lending practice through hiring consultant who have special expertise on major priority areas like Agriculture, Manufacturing and able to provide expert advice before the bank is going to finance. And to protect the bank from financial risk also recommended credit management to continue strengthening its monitoring mechanisms through regular follow up strategies and commitment, CRM to provide advices, counselling to borrowers to protect customer from business failure and the management also to provide training to all credit performers to improve their business knowledge so that the bank will reduce the size of non-performing loan and in effect will improve its financial performance. The study thus recommends an effective credit risk management for commercial banks of Nepal based that maintains an optimum level of capital adequacy ratio KEYWORDS: Return on Assets, Earning per Share, Credit Deposit Ratio, Capital Adequacy Ratio, and Non-performance loanItem Impact of Credit Performance on the Profitability of Commercial Banks in Nepal(Faculty of Management, 2022) Tamang, BimalThe main purpose of the study was to examine the impact of credit performance on the profitability of commercial banks in Nepal. The study variables were Credit deposit ratio, Non-performing loan and Credit adequacy as Independent variable and profitability indicators Return on equity (ROE) and Earning per share (EPS) as dependent variable. The study used quantitative research approach and secondary financial data for the period covering 2011/12-2020/21 since implementation of core banking system to examine the financial impact of nonperforming loan on bank’s performance. Descriptive and explanatory research design was employed and data were analyzed using descriptive statistics and multiple linear regression models by using SPSS software. . Credit loans is one of the key sources of income of commercial banks, therefore managing the risk related to credit greatly impacts the bank’s profitability. Based on the analysis result the Commercial Bank enhance current lending practice through hiring consultant who have special expertise on major priority areas like Agriculture, Manufacturing and able to provide expert advice before the bank is going to finance. And to protect the bank from financial risk also recommended credit management to continue strengthening its monitoring mechanisms through regular follow up strategies and commitment, CRM to provide advices, counselling to borrowers to protect customer from business failure and the management also to provide training to all credit performers to improve their business knowledge so that the bank will reduce the size of non-performing loan and in effect will improve its financial performance. The study thus recommends an effective credit risk management for commercial banks of Nepal based that maintains an optimum level of capital adequacy ratio KEYWORDS: Return on Assets, Earning per Share, Credit Deposit Ratio, Capital Adequacy Ratio, and Non-performance loanItem Non-Performing Assets and Profitability of Commercial Banks in Nepal(Department of Management, 2022) Bashyal, SaritaThis study examines the impact of non-performing assets and profitability of commercial banks in Nepal. Out of 27 commercial banks, five commercial banks have been selected as sample based on descriptive and analytical technique. Secondary data was collected from the annual reports of five selected commercial banks for the period of 2011/12 to 2020/21. Data have been collected and analyzed by using mean, coefficient of variation, correlation and regression analysis. The profitability in terms of return on assets (ROA), return on equity (ROE) and profitability are selected as dependent variables. Non-performing assets (NPA), capital adequacy ratio (CAR) and total loan to total deposit ratio (TLTD) are taken as independent variables. The finding indicates that NPA has significant impact on the profitability of Nepalese commercial banks. The result shows that ROE has been found a positive impact on the NPA, CAR andTLTD. Thus, this study concludes that non-performing assets is an important predictor for the profitability of the bank. Therefore, the success of the bank in term of profitability depends on its non-performing assets.Item Stress test analysis of Nepal Finance Limited : A strategic perspective(Department of Management, 2022) Prajapati, SagarAlong with the global recession and inclusion of the various risk had increased the vulnerability of financial institutions and it had affected Nepal too. Because of the global recession, BCBS has introduced the concept of stress testing which is one of the effective and popular ways to alert bank management with regard to adverse unexpected outcomes related to variety of risks and provides an indication how much capital might be needed to absorb losses, if such large shocks occur. In this paper, stress test of Nepal Finance Limited has been conducted completely based on the Stress Test Guidelines, 2012 issued by Nepal Rastra Bank. The various shocks on credit risk, liquidity risk and market risk has been carried out its some negative worst case scenarios on which the CAR has been declined to less than 11% and if it happens, PCA will be imposed by NRB. Finally, management implications have also been stated which help the senior management, Board of Directors, depositors, shareholders and all other stakeholders of Nepal Finance Limited for the respective benefit. Key Words: Stress testing, Strategic management, Risk, Credit risk shocks, Liquidity risk shocks, Interest rate shocks, Capital adequacy ratioItem A Study on CAMELS Rating of Commercial Banks :With Reference to Selected Commercial Banks in Nepal(Faculty of Management, 2010-11) Shrestha, Shrwan KumarNot available