Bank Size

This paper investigates the impact of bank-specific, industry-specific, and macroeconomic variables on bank profitability before, during, and after the financial crisis of 2008. For this purpose, 73 UK commercial banks are selected on the basis of availability of required information. The empirical data for these banks are collected for the period from 2006 to 2012 from Bankscope and Data-stream databases. The regression and correlation analyses are performed on the data and concluded that bank size, capital ratio, loan, deposits, liquidity, and interest rate have positive impact on ROA and ROE while GDP and inflation rate have negative impact. The findings of this study can help UK banks, government, investors, policymakers, and shareholders for decision making and improving the performance of financial institutions in the future.

Previous studies on the relationship between bank restructuring and financial performance reveal conflicting results with few studies establishing the effect of financial services. Few studies have investigated the causality between bank restructuring and financial performance as intervened by deposits and customer loans. The positivism research philosophy and descriptive and inferential causal research design were used in this study. The hypothetical view of the study was that the relationship between bank restructuring and financial performance of commercial banks in Kenya is not intervened by deposits and customer loans. The 39 commercial banks that were consistently in business for the period 2002 to 2014 were included in the study. Bank restructuring was disaggregated into financial restructuring, capital restructuring, operational restructuring and asset restructuring. The empirical findings were as follows: There was a significant direct association between bank restructuring and financial performance which was intervened by deposits and customer loans as proxies for financial services. Deposits were found to be significant in intervening the relationship between bank restructuring and financial performance. Customer loans on the other had was not found to significantly intervene the relationship between bank restructuring and financial performance. A composite variable of financial services denoting the aggregate of the intervention of deposits and customer loans showed a significant intervening effect on the relationship between bank restructuring and financial performance. The study outcome therefore reveals that the hypothesis that the relationship between bank restructuring and financial performance is not intervened by financial services is rejected.

The purpose of the study to determine the commercial banks' lending in Nepal. The balance panel secondary data were used. The data has been analysis with help of Gretl statistics software version 1.9.4. The loan and advance taken as dependent variables whereas liquidity, investment portfolio, cash reserve ratio, bank size, gross domestic products growth rate and inflation rate were independent variables. The result shows that investment portfolio, cash reserve ratio and bank size have positive and significant effects on loan and advance. But the liquidity has negative and statically significant with loan and advance. The macroeconomic variables gross domestic products growth rate and inflation rate have not effective roles plays to determine the loan and advance. The concluded that liquidity, investment portfolio, cash reserve ratio and bank size were major determinants of loan and advance.

This  study  examined  mergers  and  acquisitions  as  growth  strategy  in  business  organizations:  a  study  Nigeria banking sector. Three banks were used for the study. Secondary data were collected from the firms for ten years period,  2007-  2016. Bank  size,  gross  earnings  and  turnover  were  proxies  for  mergers  and  acquisitions.  Profit after Tax was the proxy for the growth. Data were analyzed using multiple regression analysis. Results indicate that mergers and acquisitions has positive and significant effect on banks’ growth. The study recommends that Mergers  and  Acquisition  should  not  be  done  out  of  desperation  or  necessity  as  was  the  case  during  the consolidation period but should be properly evaluated and carried out to ensure its success. The pros  and cons should be weighed and it should be determined if that is the best option for the organization. Banks should be
innovative  in  the  development  and  marketing  of  their  products  in  order  to  increase  their  market  share  and performance and also enhance the competitiveness of the banking industry. A strategically integrated acquisition programme should be put in place to ensure a successful merger/acquisition

This study intends to test, analyze, and verify the influence of bank size, capital adequacy, liquidity, credit risk, and market power on commercial banks profitability. Quantitative research methods applied in this study are explanatory method, which aims to analyze the influence of independent variables on dependent variable and descriptive method to describe the object studied. The study also applies the Stochastic Frontier Analysis (SFA) approach to estimate the technical efficiency of commercial banks. The results show that bank size, capital adequacy (CAR), liquidity (LDR), credit risk (NPL) and market power significantly affect the profitability of commercial banks in Indonesia in the period of 2010-2016. The result of yearly financial report of each bank is caused by the fact that: 1). some banks are in the process of mergers; 2). the allowance for impairment losses on financial assets and non-financial assets increased primarily with banks in the merger process; 3). banks have credits in default status and under special surveillance with an increasing amount of credits from year to year.

Growth opportunities for investments form an important part of the bank's value. When investors determine value of the bank according to the bank's accounting report, it is necessary to consider the bank's expectations for growth investments. With the development of capital markets has been more pronounced role of performance measures at reflecting in the performance of banks through their existing content. Identify economic and financial accounting factors which influence from different directions on the value of bank shares are effective in creating positive conditions for increasing investment and financial credit absorption of bank. Taking into account the stated conditions, the purpose of this investigation is to investigate factors affecting the value of bank stocks. Needed data for research are collected from 25 active banks in Tehran Stock Exchange during 2008-2014. The data are analyzed using Excel, SPSS and E-views soft wares. Im, Pesaran, and Shin test is used to evaluate the reliability of variables, then F-Limer fitness tests and Hausman are reported and finally regression model corresponding to the research questions is fitted. Obtained results show that bank size, bank performance, inflation rate and bank credit risk have impact on market value of bank shares.

JEL: D53, E31, G32

The purpose of this study is to analyze some of the more important internal factors that affect the profitability of commercial banks in Albania. The aim of this paper is to find out the relationship between the internal factors and bank profitability. Bank profitability is measured by Return on Assets (ROA) as a function of some important determinants taken in consideration in this research. Through this paper I would like to show how practical results seem to be equal to the empirical results. This paper analyzes the profitability of commercial banks in Albania over the time period from 2005 to 2012 for 12 commercial banks in Albania organize by 95 observations. This paper uses regression analysis fixed effect model to implicate the results with the respective hypotheses. The factors taken into consideration are Bank size, Loans, Deposit, Credit Risk, Interest income etc. The result from the analysis shows that, few of internal variables have significant influence on a bank’s to t...

Despite commercial entities amplifying financial innovation there is need for empirical inquiry on their contributions towards economic development through financial inclusion and deepening. Financial deepening is the capacity of financial institutions to enhance access to its services. Financial innovations have reduced turnaround time for banking services such as withdrawals, deposit and loan approval process. Despite this documented evidence its contribution to economic development through financial deepening is barren empirical ground. Hence, this paper investigated the relationship between financial innovations adoption and financial deepening of listed commercial banks in Kenya. The study was anchored on technology acceptance model. Expo facto research design was adopted, census of 12 listed commercials was considered for five years. A significant relationship between financial banking innovations and financial deepening was reported. Also, there was significant moderating effect of bank size on the relationship between financial innovations adoption and financial deepening of listed commercial banks.

This paper investigates the financial performance of commercial banks in Greece for the period 2007-2011, which is marked by the severe financial crisis. The efficiency assessment of Greek banks is based on financial figures and ratios. For this purpose a representative dataset of seven Greek commercial banking institutions is selected and exhaustive empirical research is employed based on financial, correlation and regression analyses in order to estimate the impact of selected independent variables (asset utilization, operational efficiency and bank size) on financial performance indicators (net interest margin and return on assets). The output of this research implies that during the tested period large banks in terms of deposits, credits, assets and shareholders’ equity under-perform in comparison with small banks. Moreover, significant correlations are reported between efficiency indicators and independent variables, remarks that are also confirmed from regression analysis resu...

The study describes the profitability and market size of Islamic Banking. The research focuses on the market size increases by profitability of Islamic banking. This study describes the unique area of market size of Islamic banking by using the profitability. The profitability ratios are Return on Asset and Return on Equity by using Gearing Ratio, Payout Ratio, Asset Turnover and EPS as variables to gauge the profitability either concurrently or partly on Islamic banking of Pakistan. ROA and ROE are dependent variables. Gearing Ratio, Payout Ratio, Asset Turnover, and EPS are independent variables. This study is a secondary base and the numerical value of the data is 100 observations. The selected sample size is ten Islamic Banks. The sample data periods selected from 2007 to 2016. The Panel unit root test is conducted for prerequisite of panel data. The balance panel data technique is applied. The overall

This study examines the impact of dividend on stock prices. The study adopts the ex-post facto research design and data were handpicked from the annual report and statement of account of selected banks listed on the Nigerian Stock Exchange for the period. The findings of this study support the opposite view that dividend yields do not have positive and significant impact on stock prices. This implies that stock prices tend to increase when an increase in dividend is announced but tend to decrease when a decrease or omission is announced.

It is a common place that during financial crises, like the one started in 2007,
authorities provide substantial financial support to some problem banks, whilst
at the same time let several others to go bankrupt. Is this happening because
some particular banks are considered important and big enough to save,
whereas some others are perceived as being ‘Too-Small-To-Survive’? Is the
size of banks the fundamental factor that makes authorities to treat them
differently, or it is also that some banks perform poorly and are not capable of
withstanding some considerable shocks whatsoever? Our study provides
concrete answers to these questions thus filling part of the void in the existing
literature. A short- and a long-run positive relationship between size and
performance is documented regardless of the level of bank soundness (healthy
vs. failed and assisted banks) under scrutiny. Importantly, we pose and lend
support to the ‘Too-Small-To-Survive’ hypothesis according to which the
impact of bank performance on failure probability strongly depends on size.
Evidence shows that authorities tend not to save banks whose size is below
some specific threshold.