Browsing by Author "Priyadarshani, K.M.C."

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Impact of financial crisis on banking sector performance
(Department of Accountancy, University of Kelaniya, 2015) Priyadarshani, K.M.C.
Financial crisis is a situation in which the supply of money is outpaced by the demand for money. This means liquidity is quickly evaporated because available money is withdrawn from banks. The view that a financial institution has a culture or business model that affects its sensitivity to crises implies that the performance of a financial institution in one crisis should predict its performance in another crisis (Fahlenbrach, Prilmeier and Stulz, 2012). Banks that relied more on short-term funding, had more leverage, and grew more are more likely to be banks that performed poorly in both crises. The organization which are operated in banking sector can be adapt recapitalization, mergers and acquisitions, privatization of state controlled banks as a shield for those impacts (Sufian, et al, 2010). The purpose of doing this research is to assess impact of financial crisis on banking sector performance and to explain actions that can be taken to cover of those impacts. Data is collected through the audited financial statements of the 20 banks within 5 years and also analyzed the data using regression and correlation analysis. Final outcome of this research is adding knowledge to bank entities to get an idea about how they can preserve their performance within crisis period and provide more actions that can be taken to cover impacts if it adversely affect to the banks.
Impact of Global Financial Crisis on Banking Sector Performance in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Priyadarshani, K.M.C.; Thilakarathne, P.M.C.
Financial crisis is a situation in which the supply of money is outpaced by the demand for money. This means liquidity is quickly evaporated because available money is withdrawn from banks. The purpose of this study is to investigate impacts of global financial crisis on banking sector performance in Sri Lanka. It is based on the two objectives which were to assess relationship between financial crisis and bank performance and to examine impacts of Capital Adequacy, Assets Quality, Management Quality, Earnings and Liquidity on bank performance. Data was collected through the annual reports of selected commercial banks from 2007 to 2015.A descriptive statistics, correlation analysis and multiple regression analysis were used to investigate relationship between Capital Adequacy Ratio, Gross Non Performing Advances Ratio, Interest Coverage Ratio, Return on Equity and Liquid Assets Ratio with the Bank performance. The findings indicate that Capital Adequacy Ratio, Gross Non Performing Advances Ratio, Interest Coverage Ratio, Return on Equity had a significant relationship with bank performance. But Liquid Assets Ratio had a no significant relationship with bank performance. Thus the study concludes that global financial crisis significantly influenced on the bank performance. Final outcome of this research is adding knowledge to bank entities to get an idea about how they can preserve their performance within crisis period.