Junior Research Symposia
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Item 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 This means liquidity is quickly evaporated because available money is withdrawn from banks.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.Item The Relationship between Credit Risk and Bank Performance: A Study of Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madushani, B.D.A.; Madurapperuma, M.W.Credit risk is the most important part of all commercial banks performing their works around the world. The objective of this study is to identify the relationship between credit risk and commercial banks performance in Sri Lanka. This study based on secondary data and data were obtained from various sources such as selected commercial banks annual reports, relevant articles, books and magazines etc. The panel data of a ten year period from 2006 to 2015 from the selected ten banks were used to examine the relationship between credit risk and commercial banks performance. Furthermore, Return on Assets (ROA) used as a profitability indicator while Non-Performing Loan to Total Loan Ratio (NPLR), Capital Adequacy Ratio (CAR) and Total Loan to Deposits Ratio (LTDR) used as credit risk indicators. The correlation and regression analysis was used to examine the relationship between credit risk and profitability indicators during the period and study by using E-views software. According to the empirical results, it was observed that NPLR and CAR has negative significant relationship with the commercial banks profitability and LTDR has positive significant relationship with the commercial banks profitability. Then this study concluded the credit risk has a significant relationship with the bank profitability. Therefore, this study recommended the banks to implement an effective tools and techniques to reduce the credit risk of commercial banks in Sri Lanka.Item Impact of Corporate Governance Practices on Financial Performance: Evidence from Banking Sector in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nimasha, N.A.D.A.; Thilakarathne, C.R.Corporate governance can be defined as the scheme by which corporations are directed and controlled. The objective of this exploration is to inspect the impact of corporate governance tools on firm performance using data of 12 banks in Sri Lankan banking industry over the period of 2006-2015 based on the 120 observations. This study has used only secondary data and main source of data contain of the annual report of the specific banks. Return on Equity (ROE) is used as reliant on variable to the model. Further Firm Leverage, Firm size, Number of Auditors, Board Independence and Board Size used as independent variables to the model. Researcher placed panel data approach as a way of appraisal. Descriptive statistics, ANOVA and t-test applied on data by using SPSS. Findings are based on Correlation techniques and Regression analysis to test the hypotheses to solve the research problem Based on the observed results, Researcher found that there is a considerable significant impact of corporate governance on Performance of the banking industry in Sri Lanka while recognizing the Negative correlation ship between bank performance with Firm leverage, Firm size and board size and also identifying the significant relationship between Firm size, Number of auditors, board independence and Board size.Item 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.