BibTex RIS Kaynak Göster

DETERMINANTS OF BANKS’ PROFITABILITY: A COMPARATIVE ANALYSIS BETWEEN MALAYSIA AND SOUTH AFRICA

Yıl 2022, Cilt: 3 Sayı: 4, 30 - 43, 30.12.2022

Fatoumatta Faal Sıtkı Sönmezer

https://doi.org/10.5281/zenodo.7495549

Öz

Based on a comparative analysis, a study was conducted to evaluate the effects of non-performing loans, bank size, capital adequacy ratio, and GDP on the profitability of banks in emerging economies i.e. South Africa and Malaysia. As inputs for data analysis, the study utilizes secondary data from the Thomson Reuters database, the world bank database, and the selected bank’s financial statements. Besides, by employing a multiple regression analysis on the data available between the periods of 2008-2020, bank size and non-performing loans were found to exert positive and significant effects on South African Bank's ROA metrics. As with Malaysia, an inverse relationship was found between banks’ ROA and their non-performing loans. The study draws practical and managerial implications relevant to the operational efficiency of banks in both countries.

Anahtar Kelimeler

Nonperforming loans Profitability (ROA) Capital Adequacy Ratio Malaysia South Africa

Kaynakça

  • Ajayi, S. O., & Ajayi, Henry Folusho, Enimola, Dare Joseph, Orugun, F. I. 2019 . Effect of Capital Adequacy Ratio CAR on Profitability of Deposit Money Banks DMB’s : A Study of DMB’s with International Operating License in Nigeria. Finance and Accounting, 10, 10. https://doi.org/10.7176/RJFA
  • Aladwan, M. S. 2015 . The Impact of Bank Size on Profitability"an Empirical Study on Listed Jordanian Commercial Banks". European Scientific Journal, 11 34 , 1857–7881.
  • Aliu, M., & Çollaku, B. 2021 . Impact of Non-Performing Loans on Bank s Profitability: Empirical Evidence from Commercial Banks in Kosovo. Journal of Accounting Finance and Auditing Studies JAFAS , 7 3 , 226–242. https://doi.org/10.32602/jafas.2021.027
  • Ally, Z. 2014 . Determinants of Banks’ Profitability in a Developing Economy: Empirical Evidence from Tanzania. European Journal of Business and Management, 6 31 , 2222–2839.
  • Alshebmi, A. S., Mohammad Adam, M. H., Mustafa, A. M. A., Thomran, M., & Fathelbab, O. E. A. 2020 . Assessing the non-performing loans and their effect on banks profitability: An empirical evidence from the Saudi Arabia banking sector. International Journal of Innovation, Creativity and Change, 11 8 , 69–93.
  • Altunbas, Y., Liu, M. H., Molyneux, P., & Seth, R. 2000 . Efficiency and risk in Japanese banking. Journal of Banking and Finance, 24 10 , 1605–1628. https://doi.org/10.1016/S0378-4266 99 00095-3
  • Anber, D. A. and A. 2011 . Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. Business and Economics Research Journal, 2 1 , 139–152. https://doi.org/10.20525/ijfbs.v6i1.627
  • Anggari, N. L. S., & Dana, I. M. 2020 . The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX. American Journal of Humanities and Social Sciences Research AJHSSR , 4 12 , 334–338.
  • Berger, A. N., & DeYoung, R. 1997 . Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21 6 , 849–870. https://doi.org/10.1016/S0378-4266 97 00003-4
  • Born, B., & Breitung, J. 2016 . Testing for Serial Correlation in Fixed-Effects Panel Data Models. Econometric Reviews, 35 7 , 1290–1316. https://doi.org/10.1080/07474938.2014.976524
  • Demirgüç-Kunt, A., & Huizinga, H. 1999 . Determinants of commercial bank interest margins and profitability: Some international evidence. World Bank Economic Review, 13 2 , 379–408. https://doi.org/10.1093/wber/13.2.379
  • Do, H. L., Xuan, T. N., & Anh, P. Q. 2020 . The effect of non-performing loans on profitability of commercial banks: Case of Vietnam. Accounting, 6 3 , 373–386. https://doi.org/10.5267/j.ac.2020.1.001
  • Ebeneze, O. O. A. W. B. O. K. 2017 . Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability : Empirical Evidence from Nigeria. Journal of Finance & Banking Studies, 6 1 , 25–38.
  • Hamid, N., Ramli, N. A., & Hussin, S. A. S. 2017 . Efficiency measurement of the banking sector in the presence of non-performing loan. AIP Conference Proceedings, 1795 January 2017 . https://doi.org/10.1063/1.4972145
  • Kirui, S. 2014 . The effect of NonPerforming Loans on Profitability of Commercial Banks in Kenya. Research Journal of Finance and Accounting, 7, 148–152. http://erepository.uonbi.ac.ke/handle/11295/99661
  • Lawrence, B., Doorasamy, M., & Sarpong, P. 2020 . The Impact of Credit Risk on Performance: A Case of South African Commercial Banks. Global Business Review. https://doi.org/10.1177/0972150920969927
  • Liu, H., & Wilson, J. O. S. 2010 . The profitability of banks in Japan. Applied Financial Economics, 20 24 , 1851–1866. https://doi.org/10.1080/09603107.2010.526577
  • Malimi, K. 2017 . The Influence of Capital Adequacy, Profitability, and Loan Growth on Non-Performing Loans a Case of Tanzanian Banking Sector. International Journal of Economics, Business and Management Studies, 4 1 , 38–49. https://doi.org/10.20448/802.41.38.49
  • Markowitz, H. 1952 . Portfolio Selection. The Journal of Finance, 7 1 , 77–91. https://doi.org/10.1111/j.1540- 6261.1952.tb01525.x
  • Martiningtiyas, C. R., & Nitinegeri, D. T. 2020 . The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia. 151 Icmae , 64–67. https://doi.org/10.2991/aebmr.k.200915.016
  • OGBOI, Charles and UNUAFE, O. K. 2013 . Impact of Credit Risk Management and Capital Adequacy on the Financial Performance of Commercial Banks in Nigeria. Journal of Emerging Issues in Economics, Finance and Banking JEIEFB An Online International Monthly Journal, 2, 703. www.globalbizresearch.com
  • Olalekan, A., & Adeyinka, S. 2013 . Capital Adequacy and Banks’ Profitability: an Empirical Evidence From Nigeria. American International Journal of Contemporary Research, 3 10 , 87–93.
  • Panta, B., & Alshebami, A. 2018 . Non-performing loans & bank profitability study of joint venture banks in nepal.pdf Cite this paper Related papers DET ERMINANT S OF NONPERFORMING LOANS: EMPIRICAL ST UDY IN CASE OF COMMERCIAL B… Dessie Get net CREDIT RISK MANAGEMENT AND PROFITABILIT Y IN. http://gssrr.org/index.php?journal=JournalOfBasicAndApplied
  • Parvin, S., Chowdhury, A. N. M. M. H., Siddiqua, A., & Ferdous, J. 2019 . Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh. Asian Business Review, 9 1 , 7–10. https://doi.org/10.18034/abr.v9i1.219
  • Rahman, M. M., Hamid, M. K., & Khan, M. A. M. 2015 . Determinants of Bank Profitability: Empirical Evidence from Bangladesh. International Journal of Business and Management, 10 8 . https://doi.org/10.5539/ijbm.v10n8p135
  • Ramli, N. A., & Nuruddin, N. N. A. N. M. 2020 . Commercial banks’ performance in malaysia based on nonperforming loan Npl using two-stage data envelopment analysis dea model. International Journal of Advanced Trends in Computer Science and Engineering, 9 1.4 Special Issue , 18–24. https://doi.org/10.30534/ijatcse/2020/0391.42020
  • Rohman, A., Nurkhin, A., Mukhibad, H., Kusumantoro, & Wolor, C. W. 2022 . Determinants of Indonesian banking profitability: Before and during the COVID-19 pandemic analysis. Banks and Bank Systems, 17 2 , 37– 46. https://doi.org/10.21511/bbs.17 2 .2022.04
  • Stephen Kingu, P., Macha, D. S., & Gwahula, D. R. 2018 . Impact of Non-Performing Loans on Bank’s Profitability: Empirical Evidence from Commercial Banks in Tanzania. International Journal of Scientific Research and Management, 6 01 . https://doi.org/10.18535/ijsrm/v6i1.em11
  • Tabi Atemnkeng, J., & Nzongang. 2010 . Market Structure and Profitability Performance in the Banking Industry of CFA Countries : _ The Case Of Commercial Banks In Cameroon Tabi ATEMNKENG J . and NZONGANG Joseph Evolution of the Cameroonian Banking Industry and Market Structure. 1–14.
  • Tan & Floros. 2012 . Bank profitability and GDP growth in China : A note University of Huddersfield Repository. Journal of Chinese Economic and Business Studies, 10 August , 267–273.
  • Tobin, J. 1958 . Liquidity preference as behavior towards risk. Review of Economic Studies, 25 2 , 65–86. https://doi.org/10.2307/2296205
  • Trujillo-Ponce, A. 2013 . What determines the profitability of banks? Evidence from Spain. Accounting and Finance, 53 2 , 561–586. https://doi.org/10.1111/j.1467-629X.2011.00466.x
  • Yüksel, S., Mukhtarov, S., Mammadov, E., & Özsarı, M. 2018 . Determinants of profitability in the banking sector: An analysis of post-Soviet countries. Economies, 6 3 , 1–15. https://doi.org/10.3390/economies6030041
  • Yurttadur, M., Celiktas, E., & Celiktas, E. 2019 . The Place of Non-performing Loans in the Turkish Banking Sector. Procedia Computer Science, 158, 766–771. https://doi.org/10.1016/j.procs.2019.09.113

Yıl 2022, Cilt: 3 Sayı: 4, 30 - 43, 30.12.2022

Fatoumatta Faal Sıtkı Sönmezer

https://doi.org/10.5281/zenodo.7495549

Öz

Banka karlılığı yatırımcılar, araştırmacılar ve düzenleyici kuruluşlar için hem önemli bir konu hem de kaygı kaynağı olmuştur. Bu çalışmada, Malezya ve Güney Arfika Cumhuriyetindeki bankaların karlılığının üzerindeki etmenlerin belirlenmesi amaçlanmıştır. Thompson Reuters veri tabanı, Dünya Bankası veri tabanı ve 2008-2020 yılları arasında seçilen bankaların finansal tabloları kullanılarak analizler yapılmıştır. Bu çalışmada kullanılan çoklu regresyon analizi banka büyüklüğü ve sorunlu kredilerin Güney Afrika Cumhuriyeti bankacılığının karlılığı üzerinde pozitif ve istatistiksel olarak anlamlı bir etkisi vardır. Malezya için ise, sorunlu krediler, gayrisafi yurtiçi hasıla ve CAR bağımsız değişkenlerinin bankaların aktif karlılığı üzerinde negative etkisinin bulunduğu tespit edilmiştir. Panel veri analizi sonuçları sermaye yeterlilik oranı ile banka büyüklüğü arasında anlamlı ve pozitif bir ilişkiye işaret etmekte ve banka büyüklüğü ve karlılık arasında istatistiksel olarak anlamlı ve negative yönlü bir ilişki söz konusudur. Bu çalışma her iki ülke için de bankaların operasyonel verimliliği hakkında önemli çıkarımlar ortaya koymuştur

Anahtar Kelimeler

Sorunlu Krediler Aktif Karlılık Sermaye Yeterlilik Oranı Malezya Güney Afrika Cumhuriyeti

Kaynakça

  • Ajayi, S. O., & Ajayi, Henry Folusho, Enimola, Dare Joseph, Orugun, F. I. 2019 . Effect of Capital Adequacy Ratio CAR on Profitability of Deposit Money Banks DMB’s : A Study of DMB’s with International Operating License in Nigeria. Finance and Accounting, 10, 10. https://doi.org/10.7176/RJFA
  • Aladwan, M. S. 2015 . The Impact of Bank Size on Profitability"an Empirical Study on Listed Jordanian Commercial Banks". European Scientific Journal, 11 34 , 1857–7881.
  • Aliu, M., & Çollaku, B. 2021 . Impact of Non-Performing Loans on Bank s Profitability: Empirical Evidence from Commercial Banks in Kosovo. Journal of Accounting Finance and Auditing Studies JAFAS , 7 3 , 226–242. https://doi.org/10.32602/jafas.2021.027
  • Ally, Z. 2014 . Determinants of Banks’ Profitability in a Developing Economy: Empirical Evidence from Tanzania. European Journal of Business and Management, 6 31 , 2222–2839.
  • Alshebmi, A. S., Mohammad Adam, M. H., Mustafa, A. M. A., Thomran, M., & Fathelbab, O. E. A. 2020 . Assessing the non-performing loans and their effect on banks profitability: An empirical evidence from the Saudi Arabia banking sector. International Journal of Innovation, Creativity and Change, 11 8 , 69–93.
  • Altunbas, Y., Liu, M. H., Molyneux, P., & Seth, R. 2000 . Efficiency and risk in Japanese banking. Journal of Banking and Finance, 24 10 , 1605–1628. https://doi.org/10.1016/S0378-4266 99 00095-3
  • Anber, D. A. and A. 2011 . Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. Business and Economics Research Journal, 2 1 , 139–152. https://doi.org/10.20525/ijfbs.v6i1.627
  • Anggari, N. L. S., & Dana, I. M. 2020 . The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX. American Journal of Humanities and Social Sciences Research AJHSSR , 4 12 , 334–338.
  • Berger, A. N., & DeYoung, R. 1997 . Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21 6 , 849–870. https://doi.org/10.1016/S0378-4266 97 00003-4
  • Born, B., & Breitung, J. 2016 . Testing for Serial Correlation in Fixed-Effects Panel Data Models. Econometric Reviews, 35 7 , 1290–1316. https://doi.org/10.1080/07474938.2014.976524
  • Demirgüç-Kunt, A., & Huizinga, H. 1999 . Determinants of commercial bank interest margins and profitability: Some international evidence. World Bank Economic Review, 13 2 , 379–408. https://doi.org/10.1093/wber/13.2.379
  • Do, H. L., Xuan, T. N., & Anh, P. Q. 2020 . The effect of non-performing loans on profitability of commercial banks: Case of Vietnam. Accounting, 6 3 , 373–386. https://doi.org/10.5267/j.ac.2020.1.001
  • Ebeneze, O. O. A. W. B. O. K. 2017 . Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability : Empirical Evidence from Nigeria. Journal of Finance & Banking Studies, 6 1 , 25–38.
  • Hamid, N., Ramli, N. A., & Hussin, S. A. S. 2017 . Efficiency measurement of the banking sector in the presence of non-performing loan. AIP Conference Proceedings, 1795 January 2017 . https://doi.org/10.1063/1.4972145
  • Kirui, S. 2014 . The effect of NonPerforming Loans on Profitability of Commercial Banks in Kenya. Research Journal of Finance and Accounting, 7, 148–152. http://erepository.uonbi.ac.ke/handle/11295/99661
  • Lawrence, B., Doorasamy, M., & Sarpong, P. 2020 . The Impact of Credit Risk on Performance: A Case of South African Commercial Banks. Global Business Review. https://doi.org/10.1177/0972150920969927
  • Liu, H., & Wilson, J. O. S. 2010 . The profitability of banks in Japan. Applied Financial Economics, 20 24 , 1851–1866. https://doi.org/10.1080/09603107.2010.526577
  • Malimi, K. 2017 . The Influence of Capital Adequacy, Profitability, and Loan Growth on Non-Performing Loans a Case of Tanzanian Banking Sector. International Journal of Economics, Business and Management Studies, 4 1 , 38–49. https://doi.org/10.20448/802.41.38.49
  • Markowitz, H. 1952 . Portfolio Selection. The Journal of Finance, 7 1 , 77–91. https://doi.org/10.1111/j.1540- 6261.1952.tb01525.x
  • Martiningtiyas, C. R., & Nitinegeri, D. T. 2020 . The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia. 151 Icmae , 64–67. https://doi.org/10.2991/aebmr.k.200915.016
  • OGBOI, Charles and UNUAFE, O. K. 2013 . Impact of Credit Risk Management and Capital Adequacy on the Financial Performance of Commercial Banks in Nigeria. Journal of Emerging Issues in Economics, Finance and Banking JEIEFB An Online International Monthly Journal, 2, 703. www.globalbizresearch.com
  • Olalekan, A., & Adeyinka, S. 2013 . Capital Adequacy and Banks’ Profitability: an Empirical Evidence From Nigeria. American International Journal of Contemporary Research, 3 10 , 87–93.
  • Panta, B., & Alshebami, A. 2018 . Non-performing loans & bank profitability study of joint venture banks in nepal.pdf Cite this paper Related papers DET ERMINANT S OF NONPERFORMING LOANS: EMPIRICAL ST UDY IN CASE OF COMMERCIAL B… Dessie Get net CREDIT RISK MANAGEMENT AND PROFITABILIT Y IN. http://gssrr.org/index.php?journal=JournalOfBasicAndApplied
  • Parvin, S., Chowdhury, A. N. M. M. H., Siddiqua, A., & Ferdous, J. 2019 . Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh. Asian Business Review, 9 1 , 7–10. https://doi.org/10.18034/abr.v9i1.219
  • Rahman, M. M., Hamid, M. K., & Khan, M. A. M. 2015 . Determinants of Bank Profitability: Empirical Evidence from Bangladesh. International Journal of Business and Management, 10 8 . https://doi.org/10.5539/ijbm.v10n8p135
  • Ramli, N. A., & Nuruddin, N. N. A. N. M. 2020 . Commercial banks’ performance in malaysia based on nonperforming loan Npl using two-stage data envelopment analysis dea model. International Journal of Advanced Trends in Computer Science and Engineering, 9 1.4 Special Issue , 18–24. https://doi.org/10.30534/ijatcse/2020/0391.42020
  • Rohman, A., Nurkhin, A., Mukhibad, H., Kusumantoro, & Wolor, C. W. 2022 . Determinants of Indonesian banking profitability: Before and during the COVID-19 pandemic analysis. Banks and Bank Systems, 17 2 , 37– 46. https://doi.org/10.21511/bbs.17 2 .2022.04
  • Stephen Kingu, P., Macha, D. S., & Gwahula, D. R. 2018 . Impact of Non-Performing Loans on Bank’s Profitability: Empirical Evidence from Commercial Banks in Tanzania. International Journal of Scientific Research and Management, 6 01 . https://doi.org/10.18535/ijsrm/v6i1.em11
  • Tabi Atemnkeng, J., & Nzongang. 2010 . Market Structure and Profitability Performance in the Banking Industry of CFA Countries : _ The Case Of Commercial Banks In Cameroon Tabi ATEMNKENG J . and NZONGANG Joseph Evolution of the Cameroonian Banking Industry and Market Structure. 1–14.
  • Tan & Floros. 2012 . Bank profitability and GDP growth in China : A note University of Huddersfield Repository. Journal of Chinese Economic and Business Studies, 10 August , 267–273.
  • Tobin, J. 1958 . Liquidity preference as behavior towards risk. Review of Economic Studies, 25 2 , 65–86. https://doi.org/10.2307/2296205
  • Trujillo-Ponce, A. 2013 . What determines the profitability of banks? Evidence from Spain. Accounting and Finance, 53 2 , 561–586. https://doi.org/10.1111/j.1467-629X.2011.00466.x
  • Yüksel, S., Mukhtarov, S., Mammadov, E., & Özsarı, M. 2018 . Determinants of profitability in the banking sector: An analysis of post-Soviet countries. Economies, 6 3 , 1–15. https://doi.org/10.3390/economies6030041
  • Yurttadur, M., Celiktas, E., & Celiktas, E. 2019 . The Place of Non-performing Loans in the Turkish Banking Sector. Procedia Computer Science, 158, 766–771. https://doi.org/10.1016/j.procs.2019.09.113
Toplam 34 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Yazarlar

Fatoumatta Faal Bu kişi benim

Sıtkı Sönmezer Bu kişi benim

Yayımlanma Tarihi 30 Aralık 2022
Yayımlandığı Sayı Yıl 2022 Cilt: 3 Sayı: 4

Kaynak Göster

APA Faal, F., & Sönmezer, S. (2022). DETERMINANTS OF BANKS’ PROFITABILITY: A COMPARATIVE ANALYSIS BETWEEN MALAYSIA AND SOUTH AFRICA. Working Paper Series, 3(4), 30-43. https://doi.org/10.5281/zenodo.7495549