Investigating the Determinants of Bank Performance in South Africa: A Panel Data Analysis

Lawa, Emmanuel; Zogli, Luther-King Junior; Dlamini, Bongani Innocent

doi:10.9734/bpi/mpebm/v8/3961f

Cited by 2 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Alpera and Anbar (2011) reported positive significant impact of real interest rate in determining the performance of commercial banks. In contrary, Ngweshemi and Isiksal (2021) and Lawa, Zogli, and Dlamini (2021) reported non-significant influence of GDP and inflation rate on bank performance. This study aims to address the gap in the literature ofmacroeconomic (GDP, inflation rate, interest rate and unemployment rate) influence on the financial performance of commercial banks with empirical evidences.…”

Section: Introductionmentioning

confidence: 92%

“…The effects of macroeconomic factors cover a wider populace and indicate how the country's economy operates (Lynn, 2013). Macro economic factors reside in general environment because of which organizational control over the macroeconomic variables remain low (Dioha et al, 2018;Aguiar,& Borner, 2006) which increases the need of managerial efficiency (Lawa, Zogli, and Dlamini, 2021;Ngweshemi,& Isiksal, 2021) to overcome challenges and to grab opportunities induced by environmental factors.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Role of macroeconomic factors predicting financial performance of commercial banks in Nepal

Gautam¹,

Gautam²

2021

Int. Res. J. Mgt. Sci.

View full text Add to dashboard Cite

Purpose: This study analyzes the effect of macroeconomic indicators such as domestic products, interest rate, inflation rate, and unemployment rate on the financial performance of commercial banks in Nepal. Design/Methodology: Five top commercial banks based on the financial performance were selected with stratified sampling, with secondary data of ten years. Hausman test was used to examine the endogeneity issue in the predictor variables and the effect of predicators on financial performance were estimated using OLS estimation (random effect model). Findings: The study result revealed significant influence of macroeconomic factors except the unemployment rate for estimating ROE of commercial banks in Nepal while no significant impact was revealed for ROA. Among the significant variables, GDP contributes more in predicting the financial performance of commercial banks in Nepal. Implication: As the study found significant role of macroeconomic variables to estimate ROE, bank administrators, government officials, and investors can focus in such variables, especially in GDP for competitive financial performance. They need to develop products based on macroeconomic variables. Besides, this study finds and tries to mitigate the gap in findings of previous empirical studies. Originality/value: This study contributes to the literature on macroeconomic determinants predicting financial performance of banks, more specifically in finding the gap in determining ROA and ROE within the country specific issue.

show abstract

Section: Introductionmentioning

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Role of macroeconomic factors predicting financial performance of commercial banks in Nepal

Gautam¹,

Gautam²

2021

Int. Res. J. Mgt. Sci.

View full text Add to dashboard Cite

show abstract

Analyzing the Effects of Macroeconomic Factors on the Financial Performance of Bangladeshi Commercial Banks

2024

CJBIS

View full text Add to dashboard Cite

Since banks mobilize financial resources across the economy, they are expected to be critical in bringing about financial stability and economic progress. The purpose of this research was to determine the impact of macroeconomic variables on the financial performance of commercial banks in Bangladesh. From the World Bank website, secondary data were gathered for the fiscal years 2010 through 2021. Correlation, multiple linear regression, factor analysis, and model selection criteria were utilized for this study. From the correlation analysis, it was observed that the inflation rate was significantly and positively correlated with the financial performance of commercial banks in Bangladesh. From the multiple linear regression analysis, it was seen that import, exchange rate, and inflation rates have a substantial impact on Bangladesh's commercial banks' financial performance. From the factor analysis, it was observed that GDP and imports are highly correlated with Bangladesh's commercial banks' financial performance. Based on the model selection criteria, it was discovered that the model including all variables is the best. The government, other researchers, bank managers, possible investors, financial experts, and anybody else involved in Bangladesh's banking sector should all take note of the findings.

show abstract

Investigating the Determinants of Bank Performance in South Africa: A Panel Data Analysis

Cited by 2 publications

References 0 publications

Role of macroeconomic factors predicting financial performance of commercial banks in Nepal

Role of macroeconomic factors predicting financial performance of commercial banks in Nepal

Analyzing the Effects of Macroeconomic Factors on the Financial Performance of Bangladeshi Commercial Banks

Contact Info

Product

Resources

About