ROA is used to resemble the performance of bank which is the dependent variable and the independent variable that were examined include bank size, capital ratio, liquidity risk, operating expenses, credit risk, asset quality and debt ratio.
While many people consider that banks play a slight role in the economy taking deposit and making loans; Rose states that the banking industry principles roles today are as follows; the intermediation role, payment role, guarantor role and the policy role.
The data that were used were obtained from local and foreign bank annual report. But deposits for the privately owned and the foreign bank have an insignificant impact on profitability.
Return on average asset ROAA is used to measure bank performance which is the net profits expressed as a percentage of average total assets. As a result, the middle class has shrunk during the last five years, and some are vulnerable to falling back into poverty.
To make this possible, government and stakeholders have been active in looking at strategies to boost the financial services sector and create opportunities for employment. Empirical findings revealed that credit risk variable loan loss provision to total loans had almost perfectly significant negative relationship with profitability in all circumstances.
The independent variables were represented by Total annual assets, loans, annual non-interest income, total annual loans, overhead expenses, bank size, staff salaries, and total loan to total bank deposit and growth rate of broad money. To test the relationship between bank performance and the bank specific and macroeconomic determinants described earlier a linear regression model was estimated.
Overall, this chapter has covered the relevant theoretical and empirical related literature on the bank performance. Likewise, Quin, Yeong and Yunk explored the performance of local and foreign banks in Malaysia from to Regression and correlation analysis were used on these data and it was concluded that bank size, capital ratio, loan, deposit, liquidity and interest rate have positive impact on ROA and ROE while GDP while GDP and Inflation rate have negative impact.
Therefore, in this study a sample of 10 commercial banks were chosen. On the basis of the statement it clear that commercial bank profitability is highly influence by certain competitive forces and even some studies have argue that fierce competition within commercial banking industry tends to decrease profits Smith, A multiple regression line was developed.
Mauritius has a population of 21 commercial banks which are 6 local banks and 10 are foreign banks. They influence and help to incorporate the economic activities like poverty eradication, production, resources mobilization and distribution of public finance.
The dependent variables used in the study were net profit, Return on assets ROAreturn on equity ROEnet interest margin NIM and the macroeconomic independent variables used were GDP growth, foreign direct investment, gross salary, foreign trade balance, state budget, inflation and unemployment rate.
Additionally, Erina and Laceanalyzed the commercial banks profitability indicators in Latvia over the period till The industry concentration of the national banking system positively and significantly affects banks profitability. The linear forms specified as a dynamic model which includes performance as an explanatory variable was as follows.
The study focused on determinants of bank performance in term of profitability of Asian commercial banks among 5 countries- Hong Kong, Thailand, Indonesia, Malaysia and Philippines from to Banking and Finance Society of the University of Technology Mauritius (UTM), to address I shall focus on how I see the evolution of each pillar over the next few years, starting with financial institutions.
with a view to foster integration of the Mauritian banking sector with the Mauritian economy as well as with the international. Regarding the Mauritian banking and financial systems, it remained well-capitalised and sound.
Commercial banks continue to be the most dominant player in the Mauritian financial services sector, with assets amounting to MUR 1 billion or % of GDP.
However, alternative sources of finance, such as the Stock Exchange of Mauritius 9. The Mauritian Banking Sector History and Evolution The first bank being established is the “Bank of Mauritius” in failed in Then, along with the start off of a second Bank of Mauritius inthe Mauritius Commercial Bank (MCB) was.
5. Mauritius: An Economic Success Story Ali Zafar January There is no miracle. It is due simply to hard work, discipline, and will. points in its history, Mauritius has used intervention, subsidization, offshore banking and financial services, and and service-related information and communication.
The banking system is highly concentrated, and its core (the largest, dominant banks) would appear to be fairly robust to credit and liquidity shocks. However, smaller. The main drivers of growth were the services sector, especially finance, and the trade and accommodation services.
The latter benefited from a buoyant tourism sector, a key sector supported by the recent acceleration in the global economy.Download