Awesome Factors Affecting Financial Performance Of Banks

Seven factors namely exchange rate banks risk management- equity ratio banks size net interest margin factors interest income ratio and deposit-assets ratio are significant determinants of bank performance in China.

Factors affecting financial performance of banks. The first factor banks characteristics is considered the most important factor and the sixth factor other factors is considered the least important factor that influence commercial banks performance in Middle East region. Evaluation of financial performance of private and public sector banks. External macroeconomic variables and internal factors bank specific variables play an essential role in the financial performance of commercial banks Al-Tamimi 2010.

The purpose of the study was to examine the factors affecting financial performance of commercial banks listed on the Nairobi Stock Exchange NSE. The findings were presented in tables and narratives. The performance is measured by return on assets.

How does Asset Quality affect the financial performance of commercial banks in Kenya. The result of yearly financial report of each bank is caused by the fact that. Financial performance measured by the three indicators based on independent variables banks size credit risk asset management operational efficiency and debt ratio.

On the other hand factors that could be affect the performance of the banks were capital adequacy assets quality management capacity earning quality liquidity position GDP and age of banks were used using different measurement mechanisms. Some banks are in the process of mergers. Ongore and Kusa 2013 used the CAMEL model to study the determinants of financial performance of commercial banks in Kenya.

Financial leverage has a negative impact meanwhile the number of employees deposits to assets ratio and net result have a positive effect. Firms with better performance help to. Banks performance while management efficiency earning quality GDP and stock market performance have positive correlation though the significant impact on bank performance.

Ongore and Kusa 2013 in their study also found that capital adequacy liquidity and asset quality were the most important determinants of a banks financial performance. The key findings were as follows. The results showed that capital adequacy and size have both a positive and negative significant effect on bank performance while interest rates non-performing loans liquidity coverage ratios.