Current Issue : April - June Volume : 2019 Issue Number : 2 Articles : 5 Articles
This article draws on stylized facts to build a dynamic portfolio allocation\nmodel of sovereign wealth funds (SWF). We show that a traditional dynamic\nMerton allocation model allows for the stylized evidence that, on the one\nhand, the shares of monetary assets in such funds grow with the risk aversion\nof the state-investor in time, and on the other hand, these funds include the\npresence or absence of hedge funds correlated to the financial situation. One\nweakness of this model is its prediction of a lower risk/riskier asset ratio for\nsovereign stabilization funds and generational savings sovereign funds. This\nresult contradicts the stylized fact of a lower risk/riskier asset ratio in stabilization\nfunds than in generational savings funds. A dynamic model inspired\nby the theoretical framework of Bajeux-Besnainou et al. [1] is compatible\nwith all the stylized facts....
The study sought to investigate the efficacy of capital adequacy ratios as predictors\nof financial distress in Kenyan commercial banks. The study was\nbased on a positivism research paradigm using a descriptive research design.\nThe population of the study was drawn from 43 commercial banks operating\nin Kenya over the period 2009-2015. Data were collected using data collection\nsheets from annual reports of commercial banks. Collected data were analyzed\nusing stepwise logistic regression. Hypothesis testing was done at 0.05\nsignificance levels. The study found that capital adequacy ratios were significant\npredictors of financial distress in commercial banks in Kenya. Core capital\nto total deposits: coefficient = 0.249 and P Value = 0.026, core capital to\ntotal risk weighted assets: coefficient = -0.419, P Value = 0.007 and total capital\nto total risk weighted assets: coefficient = 0.320, P Value = 0.017 were all\nsignificant predictors of financial distress in commercial banks. The null hypothesis:\ncapital adequacy ratios were significant predictors of financial distress\nwas accepted. The study concluded that capital adequacy ratios were significant\npredictors of financial distress in commercial banks. Consequently, the study\nrecommended that, there be introduced a continuous industry driven regulatory\nand reporting structure on capital adequacy for commercial banks....
The aim of this paper is to examine the existence and direction of causality between liquidity and profitability of deposit money banks in Nigeria. Fifteen quoted banks out of the existing nineteen banks were selected for the study. They are; Guarantee Trust bank, Zenith bank, Skye bank, Wema bank, Sterling bank, First City Monument bank, United Bank for Africa, Eco bank, First bank, Access bank, Diamond bank, Unity bank, Fidelity bank, Union bank and IBTC bank. Pairwise Granga Causality test was carried out to determine the presence and direction of causality between banksâ?? liquidity and profitability. From the finding of this study, at 5% and 10% level of significance, it was revealed that the F-statistics corresponding to the null hypotheses of no causal relationship (both unidirectional and bidirectional) between LODEP (a proxy for liquidity) and ROE (profitability measure) for banks like Guaranty trust bank, Zenith bank, Sterling bank, Diamond bank, IBTC, Unity bank, UBA, Fidelity bank, Wema bank, Union bank, and Eco bank, are too low and as such there is no enough evidence for the rejection of the corresponding null hypotheses. Thus, the result revealed that there is no causal relationship (be it unidirectional or bidirectional) between liquidity and probability of Guaranty trust bank, Zenith bank, Sterling bank, Diamond bank, IBTC, Unity bank, UBA, Fidelity bank, Wema bank, Union bank, and Eco bank. The result also shows that there is a trace of unidirectional causality relationship running from liquidity to profitability for banks like Skye bank, First bank, Access bank and FCMB. Based on the findings and conclusions, the study recommend that the apex bank (Central Bank of Nigeria) should ensure close supervision and monitoring of deposit money banksâ?? strength and level of liquidity in an attempt to stabilize and strengthen the financial sector of the economy....
The study aims in understanding the causal relationship between financial development and economic growth. This research used annual data and applied dickey fuller test and granger causality test in order to understand stationary level and causation in variables. The result of this test give support to first hypothesis that first financial development causes economic growth. While no evidence was found on the support of our second hypothesis i.e. economic growth is causing financial development ....
The budgeting processes for IT projects in Swiss banks is a subject which has remained\nalmost unexplored to date. For the purpose of this paper, a thorough literature review was\nconducted to gather information on different budgeting methods and identify the current\nchallenges that banks are facing. To find out how the various budgeting processes of banks\nsupport their ability to react to fast-changing market conditions, how they differ from each\nother, and to identify the main problems of individual budgeting processes, interviews with\nfive banks were conducted. While, on the whole, Swiss banks were found to be wellprepared\nfor fast changes in the markets, a strong link to their IT project budget processes\ncould not be confirmed. In addition, Swiss banks use traditional budgeting methods in\ncombination with improved budgeting methods. A number of problem areas were identified\nfor current budgeting processes; these include planning accuracy as well as implementation\nand business IT alignment....
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