In order to solve the current financing-difficulty issue for small, medium and micro-sized enterprises, in the “ two sessions ” of 2021, government has released various favoring policies regards the ...development of small-sized enterprises, and predictably, in the future small, medium and micro-sized enterprises could combine with more and more policy advantages to achieve sustainable progress. As local financial institution, city commercial banks as well undertakes the responsibility of providing financial supports for small, medium and micro-sized enterprises and laying out the fundamental basis for local economy. This article will initiate from functions of our national city commercial banks in financing for small, medium and micro-sized enterprises, then respectively analyse the current situation of both small, medium and micro-sized enterprises financing and city commercial banks, bring up challenges that city commercial banks confront in the progress of business of financing for small, medium and micro-sized enterprises, and offer suggestions concerning promoting our national city commercial banks’ financing business and measures to deal with existing issues. At the end, based upon the development orientation of city commercial banks, provide optional measures aimed to ameliorate the financing-difficulty issue of our national small, medium and micro-sized enterprises.
The aim of the paper is to assess the condition of commercial banks listed on the Warsaw Stock Exchange after the first three months of the COVID-19 pandemic in Poland. The consolidated results for ...Q1 and Q2 2020 were used focusing on selected evaluation areas such as: capital adequacy, profitability, liquidity, credit portfolio quality as well as operational efficiency. The authors concluded that as a result of the credit crunch and the retention of previously earned profits, almost every medium (except for mBank SA) and every large bank experienced an increase in capital adequacy ratios. Moreover, the profitability of the banking sector eroded in each group of banks, with the rule that ROE is higher in the group of medium and large banks compared to the small ones. With the exception of Idea Bank SA all banks during the pandemic experienced an improvement in liquidity ratios. There was reported an increase in the cost of risk, with the greatest augmentation in small banks. It is maintained that the larger the bank the lower cost of risk. In almost every institution, the risk is mitigated by an increase in the degree of coverage by provisions for impaired receivables. In small banks there was noticed a deterioration in operational efficiency. In medium and large banks, despite a sharp drop in profits and additional costs associated with the pandemic, the process of efficiency improvement was reinforced.
A country‘s economy relies majorly on the banking sector. This study examined the effect of firm characteristics on financial performance with a focus on listed banks in the Nairobi Securities ...Exchange for the period from 2010 to 2018. The bank characteristics examined were: capital adequacy, leverage, asset quality and bank size. The collected data was analyzed using STATA 11 and this was basically descriptive, correlation and regression analysis. The findings depicted a significant positive effect of capital adequacy on both returns on equity (ROE) and returns on assets (ROA). The findings further indicated a significant negative effect of asset quality on ROE but an insignificant negative effect on ROA. On leverage, the findings indicated a significant positive effect on ROE and an insignificant positive effect on ROA. The findings of this study indicated that bank size has a significant positive effect on both ROE and ROA. This study concluded that capital adequacy and bank size have a significant positive effect on performance. There were mixed findings on the effect of asset quality and leverage on performance. The study recommended that, listed commercial banks should maintain a considerable capital adequacy to be able to effectively absorb losses emanating from economic shocks.
The study aimed to know the impact of capital adequacy on the profitability of commercial banks, as well as knowing the impact of capital adequacy on shares' prices of commercial banks in the Iraqi ...stock market. The study is targeted a group of commercial banks operating in Iraq, and therefore the importance of this study comes to determine relationship between capital adequacy and its impact on the profitability growth of commercial banks in Iraq. And knowing the extent to which the share prices of these banks are affected by the capital adequacy rate. The panel data simple was applied to reveal the nature of the relationship between capital adequacy and the profitability and stock prices for a sample of 8 Iraqi commercial banks for the period 2011 to 2018. The study proved that capital adequacy could negatively affects the profitability of ROE, which means that an increase in capital adequacy by one unit will lead to a reduction in the profitability by (0.005) units, and also that capital adequacy negatively affects stock prices commercial banks. This means that an increase in capital adequacy by one unit will lead to a decrease in the share prices of commercial banks by (0.0029) units. Hence, and through the results that have been reached, the appropriate ratio of capital adequacy must be maintained and not to increase it in random and unstudied ways because that It will negatively affect the volume of profits realized by banks and their market shares value.
The article is aimed at distinguishing the main advantages of partnership between banking institutions and fintech companies and highlight the main ways to improve such interaction. Recently, the ...number of banks cooperating with fintech startups has been constantly increasing. An important role here was played by the introduction of modern financial technologies, which contributed to the transition of banks to the digitalization of activities. The article proposes a conceptual scheme of innovative interaction between banks and fintech companies. The purpose of this interaction is the introduction of innovative financial instruments, which will improve the quantitative and qualitative composition of banking services and provide commercial banks with competitive advantages. The main advantages of integration of banking institutions and fintech companies are distinguished, including: comfort of receiving banking services; acceleration of work speed; expansion of activities without increasing the network of branches; gradual transition from offline banking to Internet and mobile banking; reducing the bank’s expenses and increasing its economic efficiency; increase in sales; income growth; complex competitive advantages in the long run. Emphasis is placed on the fact that the result of cooperation between banks and fintech startups is to create new products and services or products and services with updated characteristics, which are represented by: innovative programs and projects; novel intellectual products; modern new technological equipment and processes; new approaches to the development and formation of the market of modern banking products and services. On the basis of foreign experience, the main innovative financial instruments in the directions of fintech have been summarized, the introduction of which into the activities of domestic banks will allow banking institutions to reach a higher level of competitiveness in the world financial markets. Prospects for further research are to distinguish the major reasons that hinder the effective implementation of digitalization trends in the activities of banking institutions.
This study aims to check whether ownership structure affects Vietnamese commercial banks’ profitability or not and identify factors influencing Vietnamese commercial banks’ profitability as well. ...Utilizing the Bayesian Model Averaging (BMA) model applying for 21 commercial banks in the period 2010-2017, the authors found that bank ownership is statistically significant and the sign of the correlation coefficient is negative, indicating that state-owned commercial banks are less efficient than other commercial banks. Also, the empirical findings show that there are some factors affecting the profitability of commercial banks in Vietnam such as credit risk, capital adequacy ratio, cost-income ratio, staff expenses, and asset growth rate, where credit risk and cost-income ratio have a negative relation to banks’ profitability.
Banking sector plays a leading role in financing a country’s economic activities. Its performance is crucial in determining a country’s economic growth. This paper examines the performance of ...commercial retail banks (conventional and Islamic) in Bahrain and financial ratios were used for the period 2001-2015 on parameters such as profitability, liquidity, operating efficiency, capital adequacy and leverage. The empirical results revealed that conventional retail banks, except for Bahrain Development Bank, have consistent performance in ROA and ROE while among the Islamic retail banks, the performance of Kuwait Finance House is satisfactory in terms of profitability. The data also shows that all banks have satisfactory risk assets ratio. The commercial banks’ profitability and capital adequacy as well as their profitability and efficiency are statistically correlated. There is a significant difference in the capital adequacy but no significant difference in profitability and liquidity was found among the listed commercial retail banks.
We use a sample of large international commercial banks to test hypotheses on the dual role of boards of directors. We use a suitable econometric model (two step system estimator) to solve the ...well-known endogeneity problem in corporate governance literature, and demonstrate the empirical and theoretical superiority of system estimator over OLS and within estimators. We find an inverted U-shaped relation between bank performance and board size, and between the proportion of non-executive directors and performance. Our results show that bank board composition and size are related to directors’ ability to monitor and advise management, and that larger and not excessively independent boards might prove more efficient in monitoring and advising functions, and create more value. All of these relations hold after we control for the measure of performance, the weight of the banking industry in each country, bank ownership, and regulatory and institutional differences.
CoVaR Adrian, Tobias; Brunnermeier, Markus K.
The American economic review,
07/2016, Volume:
106, Issue:
7
Journal Article
Peer reviewed
We propose a measure of systemic risk, ΔCoVaR, defined as the change in the value at risk of the financial system conditional on an institution being under distress relative to its median state. Our ...estimates show that characteristics such as leverage, size, maturity mismatch, and asset price booms significantly predict ΔCoVaR. We also provide out-of-sample forecasts of a countercyclical, forwardlooking measure of systemic risk, and show that the 2006:IV value of this measure would have predicted more than one-third of realized ΔCoVaR during the 2007-2009 financial crisis.
We address calls for contextualization in the study of slack resources by examining the pursuit of strategic change as a contingency that shapes the effects of human resource (HR) slack and financial ...slack on firm performance. Using data on U.S. commercial banks from 2002 to 2014, we demonstrate that HR slack is more positively related to firm performance in firms pursuing strategic change, and that this relationship is stronger in the presence of greater financial slack. Moreover, we find that the moderating effect of financial slack on HR slack in the strategic change context operates through changes in organizations' human capital investment, offering a unique examination of a key mechanism through which slack resources create value and through which complementarities between different types of slack come to fruition. Our paper advances the contingency perspective within the slack literature and brings important insights from the resource management perspective to the conversation on slack and performance.
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