Comparative Management Structure and Institutional Performance in Rural Banking Institutions (original) (raw)
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2015
Regional Rural Banks are established under the provisions of an ordinance promulgated on the 26th September, 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. Reforms and mergers introduced by the Government of India in consultation with Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) in the years 1994-95 to 2005-06 have yielded positive results in respect of key performance indicators such as number of banks and branches, capital composition, deposits, loans, loans and the trend of investments. The objective of this paper is to investigate whether the merger/amalgamation of Regional Rural Banks in India, undertaken in 2005-06 has helped improve their performance. Several committees have emphasized the need to improve the performance of these banks which play an important role in the rural credit market in India. The study is diagnostic and exploratory in nature...
Financial Performance of Rural Banks in the Philippines: Application of Camels Model
International Journal of Research in Commerce and Management Studies
This study evaluated the financial performance of selected rural banks in the Philippines using the CAMELS model, namely: Capital Adequacy, Asset Quality, Management Efficiency, Earnings Capability, Liquidity, and Sensitivity to Market Risks. The study utilized secondary data of eighty (80) rural banks retrieved from the Bangko Sentral ng Pilipinas (BSP) website. Frequency and percentage were applied to answer the problem set of the study. There was a corresponding formula and criteria used to come up with the CAMELS rating. A rating of 5 corresponds to excellent performance, while a rating of 1 considers the poor performance of the rural bank involved. In general, the results of the CAMEL analysis indicate that sampled rural banks have excellent performance in both Capital Adequacy and Management Quality. They have satisfactory performance on Earnings Quality but poor performance in Asset Quality, Liquidity, and Sensitivity to Market Risk. Thus, the researcher concludes that all rural banks under study have provided ongoing competition in achieving their respective objectives as to financial performance.
Annals of the Alexandru Ioan Cuza University - Economics, 2017
This paper examines the credit risk and capital adequacy of the 567 rural banks in the Philippines to investigate how both variables affect bank profitability. Using the Arellano-Bond estimator, we found out that credit risk has a negative and statistically significant relationship with profitability. However, empirical analysis showed that capital adequacy has no significant impact on the profitability of rural banks in the Philippines. It is therefore necessary for the rural banks to examine more deeply if capital infusion would result in higher profitability than increasing debts. The study also implies that it is imperative for the banks to understand which risk factors have greater impact on their financial performance and use better risk-adjusted performance measurement to support their strategies. Rural banks should establish credit risk management that defines the process from initiation to approval of loans, taking into consideration the sound credit risk management practic...
Performance Evaluation of Regional Rural Banks in India
Regional Rural Banks are established under the provisions of an ordinance promulgated on the 26 th September, 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. Reforms and mergers introduced by the Government of India in consultation with Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) in the years 1994-95 to 2005-06 have yielded positive results in respect of key performance indicators such as number of banks and branches, capital composition, deposits, loans, loans and the trend of investments. The objective of this paper is to investigate whether the merger/amalgamation of Regional Rural Banks in India, undertaken in 2005-06 has helped improve their performance. Several committees have emphasized the need to improve the performance of these banks which play an important role in the rural credit market in India. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that performance of rural banks in India has significantly improved after amalgamation process which has been initiated by the Government of India.
Analysis Financial Performance of Rural Banks in Indonesia
International Journal of Economics, Business and Accounting Research (IJEBAR), 2019
During the period 2006-2019 many rural banks were liquidated by Indonesia Deposit Insurance Corporation (LPS) which have an impact on the performance of rural banks. This study aims to determine the effect of CAR, LDR, OCOI and NPL on the ROA of Rural Banks in Indonesia. The results of the study show that CAR, LDR, and OER have a significant effect on ROA. Every increase in operating costs will result in a decrease in pre-tax profit which results in a decrease in ROA. NPL has no significant effect on ROA. because rural bank has a large CAR ratio to cover credit risk.
Heterogenous impact of monetary policy on the Philippine rural banking system
The Philippine review of economics, 2022
The Philippine Review of Economics (pre) invites theoretical and empirical articles on economics and economic development. Papers on the Philippines, Asian and other developing economies are especially welcome. Book reviews will also be considered. The pre is published jointly by the up School of Economics and the Philippine Economic Society. Its contents are indexed in the Journal of Economic Literature, EconLit, and RePEc. pre's readership includes economists and other social scientists in academe, business, government, and development research institutions. Publication Information: The pre (issn 1655-1516) is a peer-reviewed journal published every June and December of each year. A searchable database of published articles and their abstracts is available at the pre website (http://pre.econ.upd.edu. ph).