• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.105-115
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• 2020

The study empirically examines the effects of loan portfolio diversification on bank risk and return in the nascent banking market of Vietnam. Loan portfolio diversification is captured through the Hirschman-Herfindahl index and the Shannon Entropy with sectoral exposures. We access each bank's financial reports to collect the required data, especially the breakdown of sectoral loan portfolios, thus constituting a unique dataset. To compute bank return, we use the traditional accounting indicators, including return-on-assets, return-on-equity, and net-interest margin. For bank risk, we utilize the loan-loss provisions and non-performing loans relative to gross customer loans. Using a sample of 30 commercial banks over the period from 2008 to 2019 and the system generalized method of moments estimator for the dynamic panel, we indicate the downsides of portfolio diversification. Concretely, we observe that all diversification measures exhibit significantly negative signs in all regressions across different bank return proxies. At the same time, the estimates display the significant and positive impact of diversification on the non-performing loan ratio. Hence, sectoral loan portfolio diversification significantly hampers bank performance in both aspects of lower return and higher credit risk. The results are robust across a rich set of bank performance and portfolio diversification measures.

• Asia-Pacific Journal of Business
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• v.5 no.1
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• pp.33-41
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• 2014

Since depositors are motivated by returns, it is important for Islamic banks management to understand the extent that rates of return on deposits influence their customers' decision to deposit. The main objective of the study is to explore the degree of influence of conventional bank's interest rate on Islamic bank's profitability and vice-versa. It has been seen from 2005 to 2011 that the rate of interest declared on deposit by conventional banks has a negative impact on profitability of both types of banks in Bangladesh. Rate of profit declared on deposit by Islamic banks is positively related with their profit earned but negatively related with profit earned by conventional banks. We see that rate of interest declared on deposit by Conventional Banks is positively related with their deposit volume but negatively related with Islamic Bank's deposit. On the other hand, rate of profit declared on deposit by Islamic Banks is negatively related with deposit levels of both types of banks. The survey result shows that almost 85% of the respondents are choosing Islamic banks only from their religious point of view and more than 60% of the sampled Islamic bank customers are reluctant to leave the bank even if conventional banks offer better interest rates.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.16
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• pp.7-34
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• 2001

This Study analyzes the fact that whether or not, the applicant, by failing to object promptly to the facial discrepancies of the presented documents and to return those documents to the issuing bank, has waived his right to sue for breach of the Application agreement based on the recent Korea-US Case law. Some commentators claim that an applicant has a duty to notify the issuing bank within a reasonable time after receiving the documents that they do not comply with the letter of credit requirements and to return those documents to the issuing bank, and also suggest that a failure to do so result in a waiver of discrepancies that operates as a matter of law. But such decisions make little sense in letter of credit transaction. Unless otherwise agreed, Applicant agreement does not require that the applicant notify the issuing bank of any facial discrepancies of the documents or return those documents. Moreover there is no support in the body of law, i.e., UCP 500 or the Revised UCC Article 5, for an automatic waiver or preclusion arising from the applicant's failure to object promptly. In addition, beyond the lack of authority to support an automatic waiver arising from the applicant's failure to object and return the documents, in a letter of credit transaction the issuing bank is the only party charged with the duty of scrutinizing documents. Therefore, if there are discrepancies, it is the bank that should have to seek an express waiver from the applicant ; the issuing bank should not avoid responsibility for failing to notice discrepancies because the applicant was slow to scrutinize the documents closely or because the applicant failed to inform the issuing bank of such discrepancies. Requiring that applicants inspect documents independently defeats the purpose of retaining the issuing bank, erodes the bank's responsibility to perform its role diligently, and may result in the bank avoiding liability despite negligent payment. If the bank wants to require an applicant to report discrepancies promptly, he may include a provision in the Application agreement limiting the time limit within which the applicant must give notice of facial discrepancies and return the documents. This approach will ensure the continued wide-spread use of documentary credit as a reliable payment mechanism.

• The Korean Journal of Financial Management
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• v.27 no.1
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• pp.157-180
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• 2010

We try to check empirically whether the Korean banks produce valuable information for the firms listed in KOSDAQ. The sample covers 164 KOSDAQ firms which disclosed long-term bank loans for the period of October 2004 and March 2006. The result shows no abnormal stock returns from bank loan disclosures while the bond issuance indicates a negative abnormal return. In addition, when we control the effect of different debt levels of sample firms, we could not find any statistically significant effect of all types of borrowings. Results suggest that bank borrowings do not convey any favorable information on stock return and, as a result, bank loan is just one of several financing tools rather than a special event conveying good news for the firm under asymmetric information situation.

• Journal of Korean Society of Forest Science
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• v.103 no.2
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• pp.278-286
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• 2014

Forestry management problems in South Korea have been caused by small and scattered forest lands, aging forest owners, and the increase of absentee forest owners. To solve these problems, it is a time to consider the introduction of forest land bank system for the expansion of forestry management scale, the effective management of neglected forest lands, and the stable livelihood support for aged forest owners. Therefore, this research implemented the questionnaire survey of necessity, expectation, willingness to use, and introduction plans for the forest land bank system in order to examine the feasibility and demand of the system focused on forest owners, non-forest owners, and people who return to the farm. The questionnaire survey was conducted for 262 of resident forest owners, 152 of absentee forest owners, 427 of non-forest owners, and 101 of people who return to the farm. 77.5% of forest owners and 63.8% of non-forest owners agreed with the necessity of the introduction for the forest land bank system. Both forest owners and non-forest owners would prefer to use forest land reverse mortgage and leasing among projects of the forest land bank. In addition, 75% of people who return to the farm also expected that forest land bank would be helpful to their rural and mountain life, and they would have higher preference to participate in leasing and buying forest lands than other projects. Based on the outputs of the feasibility and demand survey in this research, this study can play a key role in determining basic direction, major functions, types and range of projects as well as providing information for establishing policies of the forest land bank system.

• East Asian Economic Review
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• v.20 no.4
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• pp.469-491
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• 2016

In this paper, we estimate the exchange rate exposure, indicating the effect of exchange rate movements on firm values, for a sample of 1,400 firms in seven East Asian countries. The exposure estimates based on various exchange rate variables, return horizons and a control variable are compared. A key result from our analysis is that the long term effect of exchange rate movements on firm values is greater than the short term effect. And we find very similar results from using other exchange rate variables such as the U.S. dollar exchange rate, etc. Second, we add exchange rate volatility as a control variable and find that the extent of exposure is not much changed. Third, we examine the changes in exposure to exchange rate volatility with an increase in return horizon. Consequently the ratio of firms with significant exposures increases with the return horizons. Interestingly, the increase of exposure with the return horizons is faster for exposure to volatility than for exposure to exchange rate itself. Taken as a whole, our findings suggest that the socalled "exposure puzzle" may be a matter of the methodology used to measure exposure.

• Journal of Navigation and Port Research
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• v.35 no.7
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• pp.557-562
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• 2011

Shipwaves can have harmful effects on people who are using riverside and cause bank erosion, bank structures destruction in restricted waterways. The wave field near a vessel is consisted of a combination of a primary and secondary wave system in a shallow or restricted waterway. The water level depression(squat) and return current beside the hull are called the primary wave system. The secondary wave system, that is the wave height originates from a local disturbance point such as the bow of the ship. This study aims at investigating the characteristics of the wave field around a vessel in a restricted water in relation to navigation experimentally and theoretically. The return current and squat with a correction factor can be newly evaluated and the almost same high-sized wave heights take place on the whole waterway in a restricted water without regard to the distance from the sailing line.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.709-716
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• 2021

The main objective of this research is to find out the effect of Non-Performing Loan (NPL) of Nepalese conventional banks. The population of this study is major commercial banks in Nepal and the data obtained for this study was from the period 2015-2019. This research used secondary data and it is collected from each bank's annual report and GDP and Inflation taken from the World Bank database. The method used for data analysis in this study is multiple regression analysis. The study used NPL as a dependent variable and Return on Asset (ROA), Capital Adequacy Ratio (CAR), Bank Size, GDP growth, and Inflation as independent/explanatory variables. The result of this research shows that ROA, Bank Size, GDP, and Inflation have a significant effect on NPL but CAR does not have a significant effect on the NPL of banks. In other words, the GDP effect on NPL in this study shows a positive and significant effect while most studies show a negative effect. It demonstrates that when GDP growth increases, there is a significant increase in the growth of Nepalese banks even though there were no significant changes in income growth. Therefore, GDP growth has a positive and significant effect on the NPL of commercial banks. Thus, the bankers and policymakers need to consider GDP growth carefully while taking NPL-related decisions.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.649-656
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• 2021

This paper aims to examine the moderating role of bank competition on the effect of liquidity creation on bank capital. We measure bank competition using the Lerner index approach, liquidity creation using the Catfat approach, and bank capital using the capital to total asset ratio approach. This test also considers control variables from bank-specific factors such as Return on Assets, Loan to Deposit Ratio, and Non-Performance Loans as well as macroeconomic factors such as Gross Domestic Product, inflation, and Bank Indonesia interest rates. The sampling technique used was purposive sampling. The data sample obtained was 96 banks from a population of 114 banks in Indonesia which consistently operated during the period 2008-2018. Hypothesis testing uses panel data regression analysis techniques through the first model of the Hayes method. The results show that the negative effect of liquidity creation on bank capital depends on competition. We found that bank competition at any level (low, medium, high) negatively moderates (weakens) the effect of liquidity creation on bank capital in all banks. This finding is consistent with the view that banks may strengthen their capital in response to bank competition which may decrease the level of bank liquidity creation.

• Journal of Distribution Science
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• v.18 no.5
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• pp.5-13
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• 2020

Purpose: The aim of this article is to test the link between growth of loan distribution and Bank Valuation in Vietnam's banking sector. At the same time, the study also compared the differences in the effect of growth of loan to valuation bank in banks of different sizes, ownership rates and bank values. Research design, data and methodology: With panel data estimation techniques along with robust standard error for a sample of the banks listed on Vietnam stock exchange from 2012 to 2019. Results: Growth of loan has a positive impact on Bank Valuation (by Tobin's Q). A closer investigation provides evidence for the differential valuation effect of loan growth depending on different features of banks. Specifically, loan growth is found positively and significantly associated with Bank Valuation in small and non-state-owned banks only. Besides, bank size, deposit, and return on equity are found negatively associated with Tobin's Q, while loan loss provisions exhibit a positive relation with this measure of Bank Valuation. Conclusions: These findings provide contributions to the literature on the existence of the effect of loan growth on Bank Valuation. At the same time, the study also provides practical implications for policy makers in banks and investors.