Optimal Funds in Commercial Banks Using Linear Programming

The Impact of Current Asset Portfolio on Performance of Selected Iranian Banks

FEATURES OF INVESTMENT PORTFOLIO MANAGEMENT UNDER FINANCIAL MARKET INSTABILITY

The article examines the features of investment portfolio management under financial market instability. The relevance of the topic is determined by the fact that rising interest rates, increasing market volatility, changes in the liquidity of financial instruments, and infrastructure constraints affect the requirements for portfolio formation and rebalancing. The aim of the study is to develop a methodological approach to investment portfolio management under financial market instability based on a regime-based assessment of portfolio vulnerability. The theoretical basis of the study includes the provisions of portfolio theory, the capital asset pricing model, H. Minsky's concept of financial instability, C. Kindleberger's approaches to the analysis of financial crises, as well as O.I. Lavrushin's works on the problems of money, credit, banks, and the financial market. The methodological basis of the study is represented by comparative analysis, theoretical generalization, economic and statistical analysis, and indicator normalization. As a scientific result, the article proposes a portfolio vulnerability index and a portfolio stability coefficient. An algorithm for portfolio management under financial market instability has been developed, providing for the assessment of the market regime, verification of acceptable drawdown, liquidity, concentration, interest-rate risk, and infrastructure risk. It is shown that portfolio management in an unstable environment should be based on a combination of return assessment, stress drawdown assessment, liquidity evaluation, and analysis of the state of market infrastructure.

Beyond Size: What Drives Financial Performance in Tier II and Tier III Commercial Banks in Kenya

The financial performance of commercial banks remains a subject of considerable interest in both academic and policy circles, particularly in emerging markets where the banking sector constitutes a critical pillar of economic intermediation. This study examines the determinants of financial performance among Tier II and Tier III commercial banks in Kenya, using data extracted from audited financial statements for the fiscal year ending December 2025. The study employs Return on Assets (ROA) as the dependent variable and considers five bank specific explanatory variables: the Non-Performing Loan (NPL) ratio, Loan to Deposit ratio, Capital Adequacy ratio, Net Interest Income to Assets ratio and Operating Income to Assets ratio. Using Ordinary Least Squares (OLS) regression analysis on a sample of 28 banks, the study finds that the model explains approximately 70.83% of the variation in ROA (R² = 0.7083; Adj. R² = 0.6419), which is statistically significant at the 1% level (F (5, 22) = 10.68; p < .0001). The NPL ratio exerts a significant negative effect on performance (β = −0.0408; p = 0.006), while capital adequacy (β = 0.0913; p = 0.026) and operating income efficiency (β = 0.4214; p = 0.012) are significant positive drivers of ROA. The Loan to Deposit ratio and Net Interest Income ratio do not yield statistically significant effects. Diagnostic tests confirm the absence of multicollinearity (Mean VIF = 1.74), homoskedasticity (Breusch-Pagan p = 0.3153) and correct model specification (Ramsey RESET p = 0.8894). The findings suggest that beyond bank size, credit quality management, capital strength and income diversification are the primary levers of financial performance in Kenya's mid-tier banking segment.    Keywords:       Financial performance, ROA, Tier II and III banks, NPL ratio, capital adequacy, OLS regression.  

Liquidity Ratios and Stock Returns of Deposit Money Banks in Nigeria

Liquidity ratios are ratios that measures the ability of a firm to fund its short-term obligations as they mature. The major objective of this study was to ascertain the relationship between liquidity ratios and stock returns of deposit money banks in Nigeria for the period 2011-2022. The study used cash ratio as the independent variable and adopted secondary data obtained from the financial statement of sampled banking firms and the records of Nigeria Exchange Limited (NGX) for analysis and adopted the Generalized Method of Moments (GMM) technique for data analysis. Findings from the analysis showed that, cash ratio had a significant and positive relationship with stock returns of deposit money banks in Nigeria. The findings of this study may have been triggered by the reforms done in the Nigerian banking sector in the recent times. Therefore, the study recommended that; Regulatory agencies should stabilize the investment environment, as stable environment guarantees thorough execution of operational plans and policies, as it relates to management of current assets and liabilities. Companies that operate in stable economies seems to have a better and predictable relationship between current assets and liabilities.

Comprehensive Strategies for Liquidity Management: Policies, Practices, and Technological Advancements for Sustained Financial Stability

Liquidity management is a cornerstone of effective financial governance for any company, ensuring that it can meet short-term obligations while simultaneously optimizing operational cash flows. This review paper explores the broad spectrum of company policies for liquidity maintenance, emphasizing the importance of these policies in safeguarding against financial instability. The paper outlines core liquidity management strategies, including the development of liquidity reserves, robust cash flow management techniques, and strategic capital allocation policies. Furthermore, it investigates operational practices such as working capital management, accounts receivable and payable strategies, and inventory control, which are essential for maintaining an effective liquidity position. the review delves into regulatory frameworks that shape liquidity management, focusing on the compliance requirements set by central banks and global regulators like Basel III, as well as the evolving guidelines that address liquidity risks. The role of financial technology tools and automated systems for cash flow monitoring, such as enterprise resource planning (ERP) systems and AI-powered forecasting models, is also scrutinized, highlighting how digitalization is transforming liquidity management. The paper includes case studies of successful liquidity management in diverse business environments, from large multinational corporations to small enterprises, demonstrating the application of these strategies during economic crises, such as the 2008 financial crisis and the recent COVID-19 pandemic. By examining these policies and practices in detail, this paper offers a comprehensive framework for understanding the complexities of liquidity management and provides valuable insights into best practices that ensure long-term financial stability for organizations. It concludes with a discussion on emerging trends, such as blockchain integration and the continued development of predictive modelling technologies, which promise to revolutionize liquidity management and provide companies with more adaptive, real-time financial control.

A study on assessing the financial growth of Payments Banks in India

As part of India's broader financial inclusion agenda, RBI introduced Payments Banks as a specialized category of institution which mandated to extend accessible banking services to the underserved and unbanked segments of the population. Five Payments Banks have remained active through most of the period under study, while a sixth licensee, Paytm Payments Bank, operated under escalating regulatory restrictions before its banking licence was cancelled by the RBI in April 2026. These institutions operate under a restricted banking-model and can accept deposits of up to ₹2 lakh per customer and offer a range of payment-related services. Also, these banks are not allowed to advance credit to the customers. This restriction on income generation has caused to record heavy financial losses during their initial years. The present study evaluates the financial performance of Payments Banks in India over a six-year period, from FY 2019-20 to FY 2024-25, on the basis of the consolidated balance sheet, the consolidated profit and loss account, and a set of profitability, efficiency, liquidity and solvency ratios. The findings indicate that, following four consecutive years of losses, these banks recorded its first positive operating and net profit in FY 2022-23, and this improvement has been sustained, albeit at a modest scale, through FY 2024-25. The study also shows a bank-wise account of the current standing of individual Payments Banks. Payments Banks have faced great losses in initial years so their long-term sustainability will highly dependent on proper maintaining proper control over cost, increasing income by diversifying the fee-based income and imposing strict compliances to improve its working.