STUDY OF PARAMETERS OF RANKING OF COMMERCIAL BANKS WITH REGARD TO BANKING REGULATORY GUIDELINES by Bindu Arora and Mukta Mani
By: Global Vision Publishing HouseSingle Issue
Single Issue
- STUDY OF PARAMETERS OF RANKING OF COMMERCIAL BANKS WITH REGARD TO BANKING REGULATORY GUIDELINES by Bindu Arora and Mukta Mani
- Price : 200.00
- Published on June 1, 2013
- Global Vision Publishing House
- Language - English
- Published na
About this issue
This paper discusses the parameters of ranking of banks with regard to the banking regulatory guidelines. The banking regulatory guidelines have a significant impact on the performance of banks. Adherence to regulatory framework is one of the most important factors of assessing banking performance. Hence the ranking parameters should be oriented towards the measurement of the banks’ adherence to regulatory guidelines. For ranking of banks, the most common parameters are CAMEL, i.e., Capital adequacy, Asset quality, Management, Earnings and Liquidity. Discussion of these parameters with regard to regulatory guidelines revealed that to assess the capital adequacy, capital to risk weighted assets ratio, tier 1 CRAR, tier 2 ratio, coverage ratio, market value of equity and ownership structure are the important parameters. For asset quality, large exposures to net operating flow, investments to total assets, total exposure to sensitive sector to total assets, delinquent loans to total assets, net charge offs to average loans and non earning assets to total assets parameters can provide a better picture of performance. The discussion also revealed that for management quality profit per employee, profit per branch and asset liability management and use of information technology are useful parameters. And for assessment of earnings, return on assets, return on equity, net interest margin, net interest income and non interest income to total income ratio are important parameters.
About STUDY OF PARAMETERS OF RANKING OF COMMERCIAL BANKS WITH REGARD TO BANKING REGULATORY GUIDELINES by Bindu Arora and Mukta Mani
Global Journal of Business Management Vol. 3 No. 1, June 2009