Search

Purpose: The study's objective is to provide insight on the influence of liquidity risk and credit risk on the Bank of Bhutan (BoB) financial performance. For this Return on Equity (ROE) and Return on Asset (ROA) were employed as dependent variables in this study to assess BOB's economic health. Liquidity risk and credit risk have been used as independent variable which is measured using CAMEL model for this study. Methodology: The study is based on data from secondary source i.e., annual financial report furnished by BoB for 10 years (2010-2019), where descriptive research is generated based on quantitative analysis Findings: The study's findings demonstrated that the independent factors (liquidity risk and credit risk) had a substantial influence on BOB's financial performance, as evaluated by proxy variables ROE and ROA. The study also discovered that, unlike credit risk, liquidity risk has a considerable influence on the ROA. Value/Originality: This paper is based on descriptive study of the secondary data for the Bank of Bhutan, the largest commercial bank of Bhutan. The study context is not well represented in the body of knowledge and is less explored in the context of Bhutan. Limitations: The study examines only the liquidity risk and credit risk of BoB, there are other risks also that might affect the financial performance. Further, this study is based only on the study of one bank in Bhutan and is based on the annual reports (2010- 2019) of the bank. Keywords: Financial Performance, Return on Asset, Return on Equity, Liquidity Risk, Credit Risk, Introduction Bank of Bhutan (BoB) is the oldest bank in the country and plays a pivotal role in economic development. It provides wide array of financial products and services, which [...]

Not long ago, two writers on the subject of liquidity risk asked bluntly 'Why is liquidity risk so poorly understood?' While many financial managers have an intuitive understanding of liquidity [...]

In the past 10 years, credit unions increased their equity-to-assets ratio nearly 50% - from 7.37 in 1989 to 10.92 in 1999. At the same time, the delinquent loans-to-loans ratio [...]

The most successful financial services firms of the coming decade will be those which learn to see the world through the eyes of their customers. Their edge will come from [...]

In the face of restrictions on executive compensation, banks are using 'SERPs' and other types of non-traditional deferred compensation to hold onto and recruit top managers You might not think [...]

Relatively few banks are heavily involved with electronic data interchange yet, but the stakes are high for ignoring it. Outsourcing may open the door for more, and so may the [...]

Banks are willing to let more go outside, and the traditional fee-based deals are giving way to 'partnering' and 'strategic alliances' With all the attention directed lately on information technology [...]

In the next few years, the way banks handle compliance will be transformed by technology. The process will attend staffing, risks, costs, and more. Banks need to develop long- and [...]

There are a few ways to get to Pineville, KY, but the quickest route is to head south from Lexington on I-75 for two hours until you reach Corbin. From [...]

Platform automation is creating new sales opportunities for bankers by providing immediate access to more information during meetings. Information is power and banks are developing platform automation systems that bring [...]

Eight 'core competencies' will help you survive rapid changes in technology It has become axiomatic that to remain viable in the 1990s and the decades that follow, financial service providers [...]

It's not a stampede - yet - but a steady stream of banks has been adding on-line banking options to their delivery systems. While some banks remain cautious and are [...]

In the week before this article was written, Microsoft's Bill Gates made an interesting retraction. Speaking at a meeting of top bank executives in Seattle, Mr. Gates said he never [...]

Yes, if you genuflect to the efficiency ratio above all other measures of performance In the past few years, numerous banks have announced wide-ranging productivity programs aimed at cutting costs, [...]

Banks are discovering that annual reports, if well-designed and well-written, can be an important communication tool. A frequently-told journalism yarn relates how Stanley Walker, city editor of the New York [...]

I'm willing to bet that most banks get most of their earnings from tittle old Ladies with CDs. It sounds rather crass, but when they die, in the next 10-15 [...]

The American marketplace for personal transportation is changing in fundamental ways. For the lenders who finance the dealers who sell all those cars and light trucks, this brings new problems [...]

One might expect consumers to resist any institution's request that they offer up part of their anatomy for review, especially if this was a prerequisite to gaining access to what [...]

Like everything else in life, international commerce is speeding up, and for many corporations and people the several days it takes for cross-border payments to make their way along traditional [...]

The Date...Monday, Sept. 6, 1993. The Time: 8 a.m. The Place...hustling and bustling midtown Manhattan, the heart and soul of New York City. The Situation...Two months from today, the trading […]

Generally speaking, the smaller the bank, the less likely it is to be considering using image technology, which requires expensive image-capture equipment. Imaging, in the check processing environment, refers to [...]

Daniel Thomas The UK banking industry's multibillion-pound smartcard initiative, which aims to combat rising levels of credit and debit card fraud, will reach its first major milestone at the end […]

P & H Names President Ralph A. Dangelmaier has been appointed president of the cash management vendor Politzer & HANEY Inc., the firm has announced. Dangelmaier was previously senior vice [...]

When it comes to making money from Internet-based financial platforms, many institutions are still in the dark, a report claims. 'A lot of banks say they have no clue of [...]

ADVANTAGES Biometrics provides more accurate and secure identification that cannot easily be transferred or stolen Greater convenience-no need to memorize PINs or carry ID card Growing fears over security are […]

As many as 150 employees at a BB&T Corp. office in Charlotte were offered a 10-day supply of Cipro while tests were conducted on mail received from Washington's Brentwood post [...]

WHILE MANY MAY APPEAR TO be penniless in their own right now, young people are the investors of the future. For this reason financial institutions must be prepared for a [...]

AUSTRALIAN BANKS ARE preparing for the introduction of the euro which wilt be the currency used for all transactions in the 12 European Union countries which are soon replacing their [...]

Paul Magee, managing director of VeCommerce, anticipates take up of voice recognition systems in the Australian financial services market to occur this financial year. 'WE HAVE BEEN IN PRELIMINARY discussions [...]

LLOYDS TSB BANK IN THE UK was an early adopter of speech recognition technology, and has maintained leadership in the UK marketplace since their first system was introduced in 1997. [...]

WHILE TODAY'S CALL CENTRES help take transactions out of branches, financial services companies must use telephone services to move customers online, according to Forrester Research. 'Banks must base their call [...]

INNOVATION IN THE USE OF information is fast becoming a key source of competitive advantage for the traditional financial institution. Developments in technology have reduced barriers to entry and barriers [...]

FINANCIAL INSTITUTIONS ARE certainly no exception when it comes to realising the potential of the Internet to deliver value-added services to customers that also provide additional cost-saving channels. Australia's four [...]

Michael Barnes Jr. President Barnes Sports Group and Barnes and Co. I go to so many sites, because so much of my business (representing athletes and auctioning unusual items) is [...]

Banks today face difficult decisions in translating strategies, especially e-business strategies, into action. According to the Grant Thornton Eighth Annual Survey of Community Bank Executives, 43% had Internet banking capabilities [...]

One sector that's actively using Webcasts is banking, for making investment presentations and keeping investors and shareholders informed. finds out if this could be the saviour for streaming companies. IF […]

Solid service level agreements and security requirements can ease the way It's been said that no two application service providers (ASPs) look or act alike, but they do share the [...]

Book-value accounting has been a useful valuation tool, but, as markets become more volatile, some suggest market-value accounting should be implemented more aggressively. Book values are historically based and usually [...]

Lloyds TSB has created a new web site tying in with its current ad campaign, which asks celebrities and members of the public what priceless moments they would bank. The [...]