International Journal of Finance & Banking Studies

The study examines the bank-specific and macroeconomic determinants of banks profitability in Nigeria analyzing audited financial reports of selected sixteen (16) commercial banks over the period of 2010 to 2015 making up to 96 observations. The study identified that existing studies are sketchy in developing economies even though many studies have emerge in developed economies. The bank profitability is measured by return on assets and return on equity as function of bank-specific and macroeconomic determinants. Using the balanced panel data set, the empirical results of the study shows that capital adequacy and liquidity have a positive and significant effect on bank profitability. However, efficiency ratio have a negative and significant effect on bank profitability. With regards to macroeconomic variable, GDP growth also have a positive and significant impact on banks profitability. The empirical results of the study suggested that banks can improve their profitability through increasing capital and liquidity, decreasing operating cost with conscious effort to maintain transparency in their operations. In addition, a good economic environment for financial institutions foster increase in bank profitability. Hence, the study recommends that further studies can expand the scope while extending to other industries as well.

This study examines the influence of liquidity on the profitability of Iraqi commercial banks. Five banks based in Iraq namely: North bank, Iraqi Islamic bank, Sumer bank, Dar Es-Salam bank and Babylon bank randomly selected and analyzed for the current study over the period 2005 to 2013. Moreover,  annual reports of these banks have studied and the main ratios of profitability and liquidity were calculated. These reports are available at Iraqi Stock Exchange site. The variables that were identified as independent for liquidity were, loan deposit ratio, deposit asset ratio and cash deposit ratio, while return on assets as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of liquidity on profitability. The study observes that any increase in liquidity ratios as above mentioned will lead return on asset to increase as well. Depending on this study it could be better for Iraqi banks to keep a balance between liquidity and profitability.

<p>There is a long discussion among academics and central bankers about the theories of money supply. According to the exogenous view, central banks have the full control over money supply via policy actions including the adjustments of interest rates and reserve ratios, both of which alter commercial banks’ lending decisions. However, the theory of endogenous money supply emphasizes the role of demand for bank loans in money creation. More specifically, banks create money by meeting the demand of economic agents. In this study, we investigate which of the money supply theories holds in Turkish economy for the period 2006-2015 by employing cointegration and causality tests. Our findings show that the causality runs from bank loans to money supply both in the short and long terms, which supports the endogenous view in a sense that central bank and the banks fully meet the total demand for money in Turkish economy.</p>

<p>Operational risk threatens banks financial viability and long-term sustainability. The purpose of this paper is to explore the effect of operational risk on financial performance of commercial banks in Kenya. The qualitative research design and ordered logistic model were employed. The data was analysed with the aid of STATA software. The conclusion of the study was that there exists an inverse relationship between operational risk and financial performance. The study also finds that bank size moderates the effect internal and external fraud on financial performance of commercial banks in Kenya by shrinking it. Bank size moderates the effect execution, delivery and process management on financial performance of commercial banks in Kenya by enhancing it. The guidelines and procedures provided by the Central bank of Kenya on operational risk management should be fully adhered into.</p>

This paper examines the relationship between financial development, economic growth and energy consumption in Cote d’Ivoire over the period 1971-2011. To do so, the study first built a synthetic indicator of financial development through the principal component analysis technique (PCA) and used four energy sources such as electric power consumption, electricity production from renewable sources, electricity production from oil sources and electricity production from hydroelectric sources. Then, employing the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, we find that there is a long run relationship between financial development, economic growth and energy consumption sources. Furthermore, the results of the vector error correction models (VECM) reveal unidirectional causality running from financial development to energy consumption sources, bidirectional causality between economic growth and energy consumption and unidirectional causality from financial development to economic growth in the long run. The mixed results are due to the use of different proxies for energy consumption. Accordingly, this paper recommends that policy makers should solicit the support of financial sector in order to solve energy problems and further the diversification of the energy consumption sources since financial development has a positive effect on energy consumption in long run. Moreover, government should develop public-private partnership (PPP) to stimulate economic growth, improve the access to energy and maintain a sustainable development in Cote d’Ivoire.

<em>Dünyada sağlığın geliştirilmesi ve sağlık bilincinin oluşturulması için birey temelli uygulamalara odaklanılmış ve bu kapsamda sağlık okuryazarlığı (SO) kavramı gündeme gelmeye başlamıştır. SO, bireylere kendi sağlık kararları ile ilgili doğru tercihlerde bulunma yetisinin kazandırılması yanında tıbbi bilgileri doğru anlama, yorumlama ve sağlığı ile ilgili uygun kararları verecek davranışlar geliştirmesinin sağlanmasını ifade etmektedir. Bireylerin demografik özellikleri, genetik faktörler, beslenme alışkanlıkları, hastalıkları yönetme şekli, sosyoekonomik özellikleri gibi pek çok faktör ile ilişkilendirilebilen sağlık okuryazarlığı düzeyinin yetersizliği elde edilen bulgulara göre sağlık hizmetlerine tahsis edilen kaynakların aşırı ya da gerektiği gibi kullanılmamasına neden olmaktadır.Bu çalışma ile yetersiz SO’nın sağlık harcamalarına olan etkilerinin analiz edilmesi ve Türkiye (TR)’nin sağlık harcamaları içerisinde yetersiz SO’dan kaynaklanan mali yükün tespit edilmesi amaçlanmaktadır. Bu amaçla Vernon ve Diğerlerinin (2007), Friedland (2002)’nin varsayımlarını kullanarak geliştirdiği maliyet tahmin modeli ile Sağlık ve Sosyal Hizmet Çalışanları Sendikası tarafından 2014 yılında yayınlanan “Türkiye Sağlık Okuryazarlığı Araştırması”nın verileri kullanılarak TR için yetersiz SO’nın tahmini maliyetleri hesaplanmıştır.</em>

<p><em>The main purpose of this study is to evaluate whether the bank lending channel exist or not. Within this context, quarterly data of for the periods between 2002q1 and 2016q4 was taken into the consideration. Additionally, VAR model was used to reach the objective. According to the result of impulse response function, it was reached that</em><em> producer price index, real exchange rate and policy rate are effective determinants. Additionally, banks balance sheet has important and positive influence on total credits but industrial production index is regarded as partially effective. While considering this result, it was also found that both bank balance and macroeconomic variables used in this study is the main determinants of bank total credit.</em></p>

<p><em>In this study, we investigate factors affecting net interest margin (NIM) of commercial banks in Turkey. Especially, our results highlight the relation between unconventional monetary policy shocks and bank margins. To this end, first, we conduct an identification analysis about which parameters of asymmetric interest corridor framework are important in explaining variations in NIM. Using industry-level data, we show that there exists a pass through from BIST interbank overnight repo/reverse repo market rate and weighted average cost of funding (WACF) to bank loan and deposit rates. As a result of reduced-form Vector Autoregression (VAR) analysis we find the existence of a transmission mechanism from BIST rate and WACF to commercial loan rate, consumer loan rate and deposit rate. Same pass through to loan and deposit rates is also shown in individual bank level with the Panel Vector Autoregression (Panel VAR) analysis in the case of 16 commercial banks in Turkey during the period 2011Q1-2016Q1. After the identification analysis, we examine the relationship between NIM and policy rates through System Generalized Method of Moments (GMM) techniques by controlling bank specific, industry related and macroeconomic factors. We find that a change in the monetary policy rate has significant and positive impact on NIM. Among bank-specific factors, equity ratio and operating expenses are found to be significantly affecting NIM during the sample period. Our empirical findings also stress the significance of lag values of NIM. Estimations conducted with standardized variables indicate that economic significance of lag values and bank specific variables are larger than that of policy.</em></p>

<p><span>Bu çalışmanın amacı, Türkiy</span><span>e Cumhuriyet Merkez Bankası’nın (TCMB) 2008 Küresel Ekonomik Kriz sonrası <span>makro ihtiyati para politikası uygulamalarını incelemek ve etkilerini değerlendirmektir.</span></span><span>Küresel krize karşı 2010 yılından itibaren TCMB’nin eski politika çerçevesinde kullanılan politika faizinin yanı sıra makro ihtiyati politikalar çerçevesinde uyguladığı başlıca para politikası araçları; zorunlu karşılıklar, faiz koridoru, likidite yönetimi ve rezerv opsiyon mekanizması gibi araçlardan oluşmaktadır. </span></p><p><span>Çok sayıda politika aracının varlığının yarattığı karmaşıklığın yanı sıra, bu araçların<span> etkinliğine ilişkin ampirik sonuçların kısıtlı olması, uygulama geçmişinin kısa süreli olması ve politik müdahaleler doğru bir değerlendirmeyi güçleştirmektedir. </span></span></p>

<p>In this paper we analyse and show how price discovery process influence the volatility of stocks. Using a theoretical approach, our initial analysis revealed that stocks experience ‘normal’ volatility as the price move from one equilibrium price to another as part of the price discovery process. Our further analysis revealed that, due to the inefficiency of financial markets, stocks also experience transitionary volatility which occurs when the price transition from one equilibrium price to another. The implication of these analytical findings means that the price discovery volatility effects can only be reduced by improving the efficiency of financial markets. Thus, we recommended that the financial microstructure be designed in a manner that promotes the efficiency of financial markets.      </p>