• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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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.

• 한국전산유체공학회지
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• 제17권3호
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• pp.39-44
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• 2012

In this study, a longitudinal pitch effect on in-line tube bank heat transfer has been analyzed numerically. To verify the accuracy of the solver model and boundary conditions, global Nusselt number(Nu) and pressure drop across the 2 row tube bank are compared with the existing experimental correlations under 500 ~ 2,000 Reynolds number(Re) range. By changing transverse pitch($S_T$) or longitudinal pitch($S_L$) separately in tube bank, we're trying to identify the each effect on heat transfer. We found that the effect of transverse pitch can be accounted for Reynolds number evaluated with maximum velocity($V_{max}$) at the smallest flow area similar to most existing correlations. Variation of the longitudinal pitch($S_L$) has a greater impact on the heat transfer compared to the transverse pitch($S_T$). Overall Nusselt number increases with larger longitudinal pitch($S_L$), however individual Nusselt number of the tube row has significant difference after the first row.

• The Journal of Asian Finance, Economics and Business
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• 제7권3호
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• pp.127-135
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• 2020

The paper aims to examine whether business cycles affect the link between financial development and bank risk, measured by Zscore and non-performing loans to total loans in six Southeast Asian countries, namely Indonesia, Philippines, Malaysia, Singapore, Thailand and Vietnam. This study uses a sample of 95 listed commercial banks over a 15-year period between 2004 and 2018 in the six Southeast Asian countries. This study employs panel OLS regression and modifications to tackle issues such as endogeneity and heteroscedasticity. The results show that the impact of stock market development (the ratio of the market capitalization to GDP) on Zscore is significantly positive, whereas its effect on non-performing loans is significantly negative. The findings suggest that financial development, in terms of stock market capitalization, improves banks' Zscores and reduces their level of non-performing loans, suggesting that financial development on average reduces bank risk. The impact of business cycle is insignificant towards bank risk, thus rejecting both counter- and pro-cyclical hypotheses, except for the case of risk indicator of loan loss provisions. Examining the joint effect of the business cycle and financial development on bank risk, we find that the phase of business cycles generally does not moderate the link between financial development and bank risk.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.99-108
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• 2021

As expansion of interest income business faces several limitations, non-interest revenue can play a vital role in increasing the net profit margin and the productivity of the assets to sustain the growth rate. This study aims to analyze the Effect level (partial or total) of a bank's size on the relationship between non-interest revenue and the sustainable growth rate of Jordanian commercial banks. Baron and Kenny's methodology (1986) was adopted to test and analyze the effect of non-interest revenue: including the bank's size, on the sustainable growth rate during the period from 2008-2019. Data collection was done for thirteen commercial banks which constituted 100% of the study population. Testing four hypotheses by using Amos program and a regression model to diagnose the partial and total effect of size. Findings indicate that there is a nonlinear relationship between Non-IR and SGR due to the total effect of bank size on the sustainable growth rate. The results of this study is expected to enable the banks to diversify their revenue to support financial performance towards healthy growth without facing additional financial problems. This study adopted a different methodology from the prior efforts, by using the mediation effect role to verify the effect of non-interest revenue.

• The Journal of Asian Finance, Economics and Business
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• 제8권1호
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• pp.647-654
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• 2021

This study examines the non-performing loans of rural banks and macroeconomic factors in Indonesia, including inflation, exchange rates, and interest rates. Theoretically, the existence of erratic macroeconomic conditions can affect the level of non-performing credit risk in rural credit banks in Indonesia. The effect of macroeconomic conditions on non-performing loans has a different response for each economic sector. The main objective of this study is to determine the effect of macroeconomic factors (inflation, exchange rates, and interest rates) and bank-specific factors (credit) on the Non-Performing Loans (NPL) of Rural Banks in Indonesia for the period from January 2015 to December 2018. This study uses a Vector Error Correction Model (VECM) estimation to determine the effect of independent variables consisting of macroeconomic factors and bank-specific factors. Based on the estimation results of the Vector Error Correction Model, three variables that have a positive and significant effect on long-term non-performing loans are credit, inflation, and interest rates. Meanwhile, in the short term, there are only two variables that have a positive and significant effect on non-performing loans, namely, credit and interest rates. Inflation and exchange rate variables have a negative and insignificant effect on bad credit in the short term.

• 유통과학연구
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• 제11권7호
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• pp.39-45
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• 2013

Purpose - The paper aims at testing the moderating effect of individualism dimension of culture on consumer behavioural intention about bank services in Nigeria. Research design, data, and methodology - A survey was conducted with a sample of five hundred and fifty five bank customers drawn from various retails banks. Using Statistical Package for Social Sciences and Analysis of Moment Structure, combinations of descriptive and inferential statistics were performed. Invariance test and multiple-group analysis were conducted in order to assess the moderating effect. The invariance test was necessary to confirm the equivalence of constructs so that any difference detected thereafter could be related to moderating effect. Results - The results show that individualism has a significant moderating effect on the relationship between technical quality, perceived value and corporate image on the one hand, and behavioural intention on the other. However, individualism does not moderate the association between functional quality and behavioral intention. Conclusions - It is recommended that the bank policy makers should take necessary step to enhance the customer perception of technical quality, perceived value and corporate image with respect the retail bank services.

• 한국항해항만학회:학술대회논문집
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• 한국항해항만학회 2013년도 춘계학술대회
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• pp.29-30
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• 2013

The hydrodynamic interaction forces and moments induced by the vicinity of bank on a passing vessel are known as bank effects. In this research, the characteristic features of interaction acting on a passing vessel in the proximity of a semi-circle bank wall are described and illustrated, and the effects of ship velocity, water depth and the lateral distance between ship and semi-circle bank wall are summarized and discussed.

• 한국항해항만학회지
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• 제37권3호
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• pp.251-256
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• 2013

This paper is mainly concerned with the ship-bank interaction by model test. The experiments for the characteristics of hydrodynamic interaction forces and moments between vessel and bank with a mound were carried out in the seakeeping and maneuvering basin. A series of tests were carried out with ship model in parallel course along a vertical sidewall with a mound with varying lateral spacing between model ship and sidewall, length of sidewall and water depth. From the experimental results, it indicated that the hydrodynamic interaction effects increase as length of sidewall with a mound increases. Furthermore, for lateral spacing less than about 0.2L between vessel and bank, it can be concluded that the bank effects increase largely as the lateral spacing between vessel and bank decreases. However, for spacing between vessel and bank more than about 0.3L, the interaction effects increase slowly as lateral spacing decreases. Also, for the water depth to draft ratio(h/d) less than about 1.5, the hydrodynamic interaction effects increase dramatically as h/d decreases.

• The Journal of Asian Finance, Economics and Business
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• 제7권8호
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• pp.205-212
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• 2020

This study seeks to examine the main factors, external and internal to the bank, that enhance bank lending. Bank lending is one of the connecting bridges in sustaining society. Internal factors consist of ROA, DPK, and CAR. External factors are economic growth and interest rate of Bank Indonesia. The population of this research consists of traditional commercial banks listed on the IDX over the 2014-2017 period. Samples were chosen by purposive sampling method. This study uses secondary data with 56 samples; data analysis uses multiple linear regression. The findings of the study show that internal factors have a greater impact on increasing bank lending than external factors. The main variable among internal factors that influences increase in bank lending is ROA. DPK is the internal factor with the smallest impact on increasing bank lending. The implication of the study is that determining the bank lending should take more account of CAR, DPK, ROA, BI interest rates, and economic growth in making decisions about the amount of lending. These variables can only have a slight effect on increasing lending, though. Besides, internal factors such as NPL, LDR or non-economic factors also need to be considered in channeling bank credit.

• The Journal of Asian Finance, Economics and Business
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• 제6권3호
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• pp.9-18
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• 2019

The purpose of this study is to investigate the relation between conservative loan loss accounting practice of banks, defined as accounting behavior that increases loan loss allowances against expected credit losses, and bank lending. Furthermore, we specify the macroeconomic conditions reflecting debtors' borrowing environments and analyze how these conditions affect the relation between conservative loan loss allowances and bank lending. Although existing literature reports that accounting conservatism has a direct effect on non-financial firms' investment behavior, there is little evidence about an effect of conservatism on banks' lending behavior. By exploiting data showing the links between individual Japanese firms and their individual lenders to control both loan demand and supply, we estimate OLS regressions to test the relationships among conservative loan loss allowance, bank lending, and macroeconomic conditions using a unique dataset containing bank-firm-year observations between 2001 and 2013. We find banks that have conservative loan loss allowances tend to provide fewer loans to firms with financing needs when macroeconomic conditions are good and these conservative banks are likely to provide more loans to firms when macroeconomic conditions are bad. Our findings suggest that reflecting expected credit loss into loan loss allowances can mitigate the procyclical behavior of banks.