Search results

1 – 6 of 6
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 23 January 2021

Shasnil Avinesh Chand, Ronald Ravinesh Kumar and Peter Josef Stauvermann

This study aims to examine the determinants of bank stability based on three measures of bank stability while accounting for key bank-specific, macro-finance and structural…

885

Abstract

Purpose

This study aims to examine the determinants of bank stability based on three measures of bank stability while accounting for key bank-specific, macro-finance and structural variables. The aim is to underscore key indicators of stability that can be tracked by analysts, bank managers and regulators, especially in small economies such as Fiji.

Design/methodology/approach

The sample comprises a balanced panel of seven banking and financial institutions over the period 2000-2018. For consistency of data and similar functions in terms of deposit and loans, this paper considers five commercial banks and two credit institutions in Fiji. A fixed-effect method of regression is applied, to control for bank heterogeneity. The dependent variable is bank stability, which is based on three measures – the Z-score, the risk-adjusted return on assets and the risk-adjusted equity to assets ratio.

Findings

It is noted that bank size, funding risk, credit risk and Herfindahl-Hirschman index are positively associated with bank stability. In the extended model, both inflation and economic growth are positively associated with bank stability, although only inflation is statistically significant. Moreover, factors having a negative association with bank stability are the liquidity risk, the net interest margin and the remittances inflow. Additionally, the domestically generated political crises of the years 2000 and 2006 and the global financial crisis of 2007–2008 are negatively associated with bank stability.

Originality/value

This study empirically examines the determinants of bank stability in Fiji’s banking sector. Unlike previous studies, this study considers three measures of stability, with z-score as the dominant measure and as explanatory variables, bank-specific, macro-finance and structural variables. The bank-specific data used in the study were hand-picked from the disclosure statements of banks and macro-finance data were extracted from the World Bank Indicators. The study underscores pertinent factors associated with bank stability in the small island economy of Fiji, which can be of interest to analysts, bankers, regulators and researchers in this domain.

Details

Accounting Research Journal, vol. 34 no. 1
Type: Research Article
ISSN: 1030-9616

Keywords

Access Restricted. View access options
Article
Publication date: 15 October 2024

Shasnil Avinesh Chand, Ronald Ravinesh Kumar and Peter Josef Stauvermann

Deposits, a liability component of banks’ balance sheet, are an important source of funding for commercial and retail banks. In this study, the authors consider deposits as…

79

Abstract

Purpose

Deposits, a liability component of banks’ balance sheet, are an important source of funding for commercial and retail banks. In this study, the authors consider deposits as dependent variable and examine factors (bank-specific, macrofinance and structural) that could plausibly explain deposits. Subsequently, the findings are expected to support analysts, bank managers and regulators, especially in small economies such as Fiji, for asset–liability management.

Design/methodology/approach

This study uses a balanced panel of six commercial banks and two credit institutions over the period 2000–2022. To control for bank heterogeneity, a fixed-effect regression method is used.

Findings

Bank-specific variables such as bank size, profitability, loan-to-deposit ratio and bank stability are positively associated with bank deposits, whereas the capital adequacy ratio is negatively associated with bank deposits. Macroeconomic variables such as remittances and gross domestic product per capita are positively associated with bank deposits. Moreover, institutional variables such as control of corruption, political stability and regulatory quality are positively associated with bank deposits. However, tail events such as the global financial crisis of 2007–09 and the COVID-19 pandemic negatively influence bank deposits. Structural breaks for 2007 and 2011 of two banks (Bank of the Baroda and Bank of the South Pacific, respectively) are positively associated with bank deposits.

Originality/value

Previous studies have considered profitability, competition, nonperforming loans and stability of banks in Fiji. To the best of the authors’ knowledge, this study is the first to consider the determinants of bank deposits, an important source of funds for banks in many small countries including Fiji. In addition, this study examines the impact of structural breaks, tail events such as the recent pandemic (COVID-19) and institutional variables.

Access Restricted. View access options
Article
Publication date: 2 July 2018

Ronald Ravinesh Kumar, Peter Josef Stauvermann, Arvind Patel and Selvin Sanil Prasad

The banking sector stability depends in large part on the size of non-performing loans (NPLs). Hence, the factors which explain the problem loans are very useful information for…

1856

Abstract

Purpose

The banking sector stability depends in large part on the size of non-performing loans (NPLs). Hence, the factors which explain the problem loans are very useful information for banks. Notably, studies in this regard with respect to the small developing countries’ banking sector have received less attention. Therefore, this study aims to examine the determinants of NPLs with a case of Fiji’s banking sector, over the period 2000-2013.

Design/methodology/approach

The balanced sample consists of the entire banking sector (five commercial banks and two non-bank financial institutions). First, the authors estimate a base model which comprise bank-specific indicators that are related to bank management and then they extend the estimations to include macroeconomic/structural factors such as economic growth, inflation, changes of the real effective exchange rate, unemployment, remittances, political instability and external events like the global financial crisis. The estimations are done using pooled OLS, the random effects and the fixed effects regression methods.

Findings

The results show that the following indicators have negative association with NPL and are statistically significant with the conventional levels: return on equity, capital adequacy requirement, market share based on assets, unemployment and time. On the other hand, the net interest margin has a positive and statistically significant association with NPL.

Research limitations/implications

Subsequently, the stability of the banking sector in small developing countries such as Fiji is largely dependent on banks’ profitability, solvency, size in terms of market share and the presence of a learning curve and keeping a close tab on the interest rate spread between loans and deposits.

Practical implications

The paper highlights the specific factors determining NPL in small developing economy of Fiji.

Originality/value

This study is the first to examine specific factors determining NPLs with respect to small developing economies in the Oceania region.

Details

Accounting Research Journal, vol. 31 no. 2
Type: Research Article
ISSN: 1030-9616

Keywords

Access Restricted. View access options
Article
Publication date: 6 November 2017

Syed Jawad Hussain Shahzad, Peter Josef Stauvermann, Ronald Ravinesh Kumar and Tanveer Ahmad

This study aims to examine the impact of terrorism on return and systematic risk of Pakistan’s equity industries. Daily data from 1 January 2000 to 31 December 2014 for 12…

857

Abstract

Purpose

This study aims to examine the impact of terrorism on return and systematic risk of Pakistan’s equity industries. Daily data from 1 January 2000 to 31 December 2014 for 12 industries based on the specific types of companies listed on Karachi Stock Exchange are used for the empirical analysis.

Design/methodology/approach

A multiplicative (additive) term is introduced in the standard capital asset pricing model to examine the change in systematic risk (industry returns) in response to the terrorist activities. The authors use the multiscale beta approach (Yamada, 2005) and the maximal overlap discrete wavelet transform (MODWT) to test the heterogeneous market hypothesis.

Findings

Terrorism activities increase the systematic risk for most of the industries and the negative impact on returns of banks and the financial industry. It is noted that terrorism positively impacts (increases) the industrial systematic risk mainly in short-run (between two and four days-time horizon).

Originality/value

The paper examines the impact of terrorism on a broad list of industries’ (banks, basic materials, chemicals, construction, consumer goods, consumer services, financials, industrials, minerals, oil and gas, textile and utilities) risk and return in Pakistan, using the multiscale beta approach (Yamada, 2005) and the MODWT methods.

Details

Accounting Research Journal, vol. 30 no. 4
Type: Research Article
ISSN: 1030-9616

Keywords

Access Restricted. View access options
Book part
Publication date: 12 September 2024

Peter Josef Stauvermann, Shasnil Avinesh Chand, Daniel Borer and Ronald Ravinesh Kumar

This study examines the contribution of urban development to Vietnam's economic progress over the period 1986–2020. The study uses an augmented Solow framework, where urbanization…

Abstract

This study examines the contribution of urban development to Vietnam's economic progress over the period 1986–2020. The study uses an augmented Solow framework, where urbanization is included as a shift variable in addition to capital per worker and accounts for structural breaks. It examines the cointegration and the long-run and short-run effects of urban development from four different cases of cointegration (constant, restricted constant, restricted trend and trend options), with each case accounting for the effect of a significant structural break. Also, the study provides causality nexus to check the presence of urbanization-led growth hypothesis. From the results, we note a long-run positive effect of urbanization on economic growth, but no short-run effects. In all cases, a 1% increase in population results in 0.8–0.9 increase of output, hence supporting a positive and momentous effect of urbanization over the long-term. We note a significant positive effect of a single structural break period (1991), which is a period of major shift towards economic progress. We note bidirectional causality between capital and output and a unidirectional causality from output and capital to urbanization. The former suggests a mutually reinforcing effect of capital accumulation and economic growth, and the latter indicates that urban development necessitates economic growth and capital accumulation. The findings derived from this study provide further impetus for urban development and urban policies and consider urbanization as a critical source of economic growth for Vietnam.

Available. Content available
Book part
Publication date: 12 September 2024

Free Access. Free Access

Abstract

Details

Smart Cities and Circular Economy
Type: Book
ISBN: 978-1-83797-958-5

1 – 6 of 6
Per page
102050