Essay on banking system in india

Table 8, examined the correlation of foreign banks. The results showed only OPE r = has a very strong negative relationship with ROA. This showed ROA of foreign banks is developing in Mauritius is powerfully related to the management of non-interest expenses. Non-interest expenses are useful in profitability of foreign banks. Qualified training, increase in wages, improvement of operating serve could greatly improve the foreign bank profitability. Besides SIZE r= has a moderate positive correlated with ROA. Local banks could get a better profitability if the bank grows larger. On the other hand, Asset to SIZE r= has a strong positive relationship with each other.
In the same manner, inflation has a negatively significant relationship with ROA and GDP has a positively relationship with bank performance. Inflation and GDP affects both the domestic and foreign banks.
Conclusion
To conclude, two methods was used to analyze our data, which are descriptive analysis and correlation. The performance of bank in Mauritius is meaningfully affected by internal and external variables. By using descriptive analysis we found that foreign banks based in Mauritius has higher return on assets, lower liquidity risk, lower credit risk, better quality assets even though small bank size comparing to domestic banks in Mauritius. We found that operating expenses has the toughest correlation to ROA by using correlation analysis. However, inflation and GDP, the macroeconomics variables affects both the local and foreign banks. A conclusion on the overall study will be drawn in the next chapter.

Essay on banking system in india

essay on banking system in india

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