Publicação
The impact of the merger law wave era (2012–2015) in the performance of commercial banks in Nepal
| Resumo: | This empirical research studies the impact in the performance of privately-owned ‘Class A’ banks in Nepal (2012-2015) after the banks’ merger laws (2011) in Nepal, assessing the systemic performance regardless of bank’s merger status. The data was sourced from the Central Bank of Nepal. The research adopted a multiple linear regression analysis to assess the impact of relevant indicators on the performance (e.g. profitability). The analysis shows that non-performing loans have a negative and significant impact on performance, whereas net interest margin has positive and significant impact. Another relevant conclusion is that, capital adequacy ratio, statutory liquidity ratio and bank size have positive effect, although not statistically significant to impact the performance. Finally, banks are highly dependent on interest income, and despite high liquidity levels, non-performing loans negatively impact the performance, which seems the result of not complying with prudent risk management approach to drive performance, and protect stakeholders. |
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| Autores principais: | Adhikari, Manish |
| Assunto: | Nepal Banks’ performance Merger Financial stability |
| Ano: | 2016 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This empirical research studies the impact in the performance of privately-owned ‘Class A’ banks in Nepal (2012-2015) after the banks’ merger laws (2011) in Nepal, assessing the systemic performance regardless of bank’s merger status. The data was sourced from the Central Bank of Nepal. The research adopted a multiple linear regression analysis to assess the impact of relevant indicators on the performance (e.g. profitability). The analysis shows that non-performing loans have a negative and significant impact on performance, whereas net interest margin has positive and significant impact. Another relevant conclusion is that, capital adequacy ratio, statutory liquidity ratio and bank size have positive effect, although not statistically significant to impact the performance. Finally, banks are highly dependent on interest income, and despite high liquidity levels, non-performing loans negatively impact the performance, which seems the result of not complying with prudent risk management approach to drive performance, and protect stakeholders. |
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