The Relationship between capital adequacy and profitability under Basel III in the Namibian banking sector
- Authors: Pomuti, Esther Kaulinawa
- Date: 2021-10-29
- Subjects: Banks and banking Namibia , Banks and banking, International Law and legislation , Bank capital Law and legislation Namibia , Rate of return Namibia , Basle Committee on Banking Supervision , Ratio analysis , Basel III (2010)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191909 , vital:45178
- Description: Globally, capital adequacy is one of the most central topics for both regulatory authorities and banks. It promotes stability and intends to reduce bank insolvency. It also represents the most important element of banks’ profitability (Profits are the first line of defense against losses from credit loss in a bank). After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses, with Banks outside Germany having taken heavy losses on their unsettled trades with Herstatt Bank in Cologne, West Germany, when it collapsed in June 1974. This study empirically tests the relationship between changes in the capital adequacy ratio under Basel III and return on equity (ROE) of the Namibian banking sector and whether such relationships exist in the short run or long run. The study used panel quarterly data for a sample of three Namibian commercial banks from the year 1999 to 2019.It employed one panel unit root tests namely: Im, Pesaran and Shin W-stat (IPS). To test the existence of a long-run relationship (equilibrium) or effect between the dependent and independent variables, the study employed the Panel Co-integration methods using Pedroni and Kao (Engle-Granger based) tests. The study carried out the Hausman test to determine the best approach for analysis and determined the PMG approach to be the preferable model for analysis. Various diagnostic tests such as multicollinearity through the correlation analysis, autocorrelation, and heteroscedasticity and cross-sectional dependence tests were carried out to determine if the data set is well-modelled and if the results can be taken seriously. The study’s results under the PMG model showed that ROE and CAR have a positive significant relationship in the short run. A dummy variable to capture the connection between ROE and CAR before and after BASEL III shows that the relationship is positive and significant indicating that ROE increases more when there is capital regulation than when there is no capital regulation. The study also concluded that there is no long run relationship between CAR and ROE. Finally, the interaction effect between the dummy variable and CAR is negative but significant and thus indicating that the positive relationship does not persist post Basel III. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Authors: Pomuti, Esther Kaulinawa
- Date: 2021-10-29
- Subjects: Banks and banking Namibia , Banks and banking, International Law and legislation , Bank capital Law and legislation Namibia , Rate of return Namibia , Basle Committee on Banking Supervision , Ratio analysis , Basel III (2010)
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10962/191909 , vital:45178
- Description: Globally, capital adequacy is one of the most central topics for both regulatory authorities and banks. It promotes stability and intends to reduce bank insolvency. It also represents the most important element of banks’ profitability (Profits are the first line of defense against losses from credit loss in a bank). After the collapse of Bretton Woods in 1973, many banks incurred large foreign currency losses, with Banks outside Germany having taken heavy losses on their unsettled trades with Herstatt Bank in Cologne, West Germany, when it collapsed in June 1974. This study empirically tests the relationship between changes in the capital adequacy ratio under Basel III and return on equity (ROE) of the Namibian banking sector and whether such relationships exist in the short run or long run. The study used panel quarterly data for a sample of three Namibian commercial banks from the year 1999 to 2019.It employed one panel unit root tests namely: Im, Pesaran and Shin W-stat (IPS). To test the existence of a long-run relationship (equilibrium) or effect between the dependent and independent variables, the study employed the Panel Co-integration methods using Pedroni and Kao (Engle-Granger based) tests. The study carried out the Hausman test to determine the best approach for analysis and determined the PMG approach to be the preferable model for analysis. Various diagnostic tests such as multicollinearity through the correlation analysis, autocorrelation, and heteroscedasticity and cross-sectional dependence tests were carried out to determine if the data set is well-modelled and if the results can be taken seriously. The study’s results under the PMG model showed that ROE and CAR have a positive significant relationship in the short run. A dummy variable to capture the connection between ROE and CAR before and after BASEL III shows that the relationship is positive and significant indicating that ROE increases more when there is capital regulation than when there is no capital regulation. The study also concluded that there is no long run relationship between CAR and ROE. Finally, the interaction effect between the dummy variable and CAR is negative but significant and thus indicating that the positive relationship does not persist post Basel III. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
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Physiological winners and losers in an ocean warming hotspot: a Case study on argyrosomus off the Namibian coast, with implications for their future management
- Authors: Pringle, Brett Andrew
- Date: 2021-10
- Subjects: Argyrosomus Benguela Current , Ocean temperature Benguela Current , Sciaenidae Benguela Current , Argyrosomus Physiology Benguela Current , Argyrosomus Geographical distribution Climatic factors Benguela Current , Argyrosomus Effect of temperature on Benguela Current , Sciaenidae fisheries Namibia , Fishery management Namibia , Sustainable fisheries Namibia
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/10962/188987 , vital:44804
- Description: Anthropogenic-induced climate change is having a profound impact on aquatic ecosystems, and the resilience of fish populations will be determined by how they respond to these impacts. Changes in ocean water temperature is regarded as the most pervasive change, and affects the biological, physiological and distribution response of species, particularly ectotherms. The increasingly variable biological responses to a changing environment suggest that some species and populations will likely prove to be more tolerant than others. The northern Namibian coast is an ocean warming hotspot, with temperatures rising at approximately ten times the global average. These rapid changes are predicted to have a considerable impact on the marine fauna. One recently documented change in distribution is a southern extension of the sciaenid, Argyrosomus coronus, from southern Angola into northern Namibian waters, where it now overlaps with the closely related Namibian species, Argyrosomus inodorus. Understanding how these species perform at current and future temperatures and where they overlap is vital to optimise any adaptive management for the Argyrosomus species, which forms a large component of Namibia’s coastal commercial, recreational and subsistence fisheries. The aim of this study was to quantify the aerobic scope of both species (A. coronus and A. inodorus), to determine which Argyrosomus species will be a winner at the current and future climate predictions and to provide recommendations for the sustainable management of the Namibian Argyrosomus fishery. Intermittent flow-through respirometry was used to quantify standard and maximum metabolic rates for both species across a range of temperatures. Results showed that metabolic rates scaled positively with temperature. It appears that the aerobic scope of A. inodorus was notably higher at most temperatures (12, 15, 18 and 21˚C), while that of A. coronus was only higher at the warmest test temperature of 24˚C. This corresponded with the contemporary biogeographic patterns of each species. Based on these findings, it is likely that the warming ocean conditions in northern Namibia and the cold Lüdertiz upwelling cell south of Walvis Bay will constrain these fish to central Namibia. While both species demonstrated signs of resilience to high temperatures, it is likely that the warming conditions will increasingly favour A. coronus, and that the leading edge of their distribution will shift southward in Namibia. The distribution of A. inodorus is likely to contract, as the energy budget of those on the northern trailing edge will be compromised. To promote the sustainable utilisation of the complex Argyrosomus fishery, adaptive management strategies need to be implemented. This will only be possible with a comprehensive monitoring program, including the collection of genetic data to inform the changing proportions of the two species. To maintain the A. coronus population, the current regulations need to be re-assessed, and harvest slots should be introduced to protect juvenile A. coronus and the fecund large females of both species. , Thesis (MSc) -- Faculty of Science, Ichthyology and Fisheries, 2021
- Full Text:
- Authors: Pringle, Brett Andrew
- Date: 2021-10
- Subjects: Argyrosomus Benguela Current , Ocean temperature Benguela Current , Sciaenidae Benguela Current , Argyrosomus Physiology Benguela Current , Argyrosomus Geographical distribution Climatic factors Benguela Current , Argyrosomus Effect of temperature on Benguela Current , Sciaenidae fisheries Namibia , Fishery management Namibia , Sustainable fisheries Namibia
- Language: English
- Type: Masters theses , text
- Identifier: http://hdl.handle.net/10962/188987 , vital:44804
- Description: Anthropogenic-induced climate change is having a profound impact on aquatic ecosystems, and the resilience of fish populations will be determined by how they respond to these impacts. Changes in ocean water temperature is regarded as the most pervasive change, and affects the biological, physiological and distribution response of species, particularly ectotherms. The increasingly variable biological responses to a changing environment suggest that some species and populations will likely prove to be more tolerant than others. The northern Namibian coast is an ocean warming hotspot, with temperatures rising at approximately ten times the global average. These rapid changes are predicted to have a considerable impact on the marine fauna. One recently documented change in distribution is a southern extension of the sciaenid, Argyrosomus coronus, from southern Angola into northern Namibian waters, where it now overlaps with the closely related Namibian species, Argyrosomus inodorus. Understanding how these species perform at current and future temperatures and where they overlap is vital to optimise any adaptive management for the Argyrosomus species, which forms a large component of Namibia’s coastal commercial, recreational and subsistence fisheries. The aim of this study was to quantify the aerobic scope of both species (A. coronus and A. inodorus), to determine which Argyrosomus species will be a winner at the current and future climate predictions and to provide recommendations for the sustainable management of the Namibian Argyrosomus fishery. Intermittent flow-through respirometry was used to quantify standard and maximum metabolic rates for both species across a range of temperatures. Results showed that metabolic rates scaled positively with temperature. It appears that the aerobic scope of A. inodorus was notably higher at most temperatures (12, 15, 18 and 21˚C), while that of A. coronus was only higher at the warmest test temperature of 24˚C. This corresponded with the contemporary biogeographic patterns of each species. Based on these findings, it is likely that the warming ocean conditions in northern Namibia and the cold Lüdertiz upwelling cell south of Walvis Bay will constrain these fish to central Namibia. While both species demonstrated signs of resilience to high temperatures, it is likely that the warming conditions will increasingly favour A. coronus, and that the leading edge of their distribution will shift southward in Namibia. The distribution of A. inodorus is likely to contract, as the energy budget of those on the northern trailing edge will be compromised. To promote the sustainable utilisation of the complex Argyrosomus fishery, adaptive management strategies need to be implemented. This will only be possible with a comprehensive monitoring program, including the collection of genetic data to inform the changing proportions of the two species. To maintain the A. coronus population, the current regulations need to be re-assessed, and harvest slots should be introduced to protect juvenile A. coronus and the fecund large females of both species. , Thesis (MSc) -- Faculty of Science, Ichthyology and Fisheries, 2021
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