Browsing by Author "Sanjeewani, D.M.N.M."

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    APPLICABILITY OF THE RISK MODEL IDENTIFIED BY BASEL FRAMEWORK ON ADVANCING FINANCIAL PERFORMANCE. (Special Reference To Licensed Commercial Banks In Sri Lanka).
    (Uva Wellassa University of Sri Lanka, 2015) Sanjeewani, D.M.N.M.
    Functions in the financial sector arise various risks due to the uncertainty of the several situations. This study expected to investigate the applicability of risk model identified by the Basel framework on advancing financial performance of Commercial Banks in Sri Lanka. The study was conducted with the objective of identifying whether there is an impact of risks in BASEL framework on the financial performance of commercial banks in Sri Lanka and to develop a "New Risk Model" including other risks which have not addressed in the BASEL framework. A sample of 10 banks were selected out of the 26 licensed commercial banks using assets based sampling method. This study used both primary and secondary data and the Primary data was collected from in-depth interviews using a semi structured interview schedule and the secondary data was collected from annual reports of the selected banks. The Mix methods approach was used in data analysis. The impact of risks in BASEL Framework on financial performance was measured by a panel data regression analysis using 100 observations covering 10 companies for 10 financial years and the thematic analysis was used to identify the risks which have not been addressed by the BASEL Framework. The results revealed that the risks in the Basel Framework which have an insignificant impact on the financial performance of commercial banks in Sri Lanka but, the Capital Adequacy Ratio has a significant impact on financial performance. Further, IT risk, Reputational Risk, Security Risk, Strategic Risk, Country Risk, Legal Risk, and Competition were identified as the risks which have not been addressed in the BASEL framework. Finally, the researcher recommend that the Sri Lankan Commercial Banks to consider the other risks other than the risks in the Basel Framework. Key Words: Basel Framework, Financial Performance, Credit Risk, Market Risk, Liquidity Risk, Operational Risk.
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    Applicability of the Risk Model Identified by Basel Framework on Advancing Financial Performance: Special Reference to Licensed Commercial Banks in Sri Lanka
    (Uva Wellassa University of Sri Lanka, 2020) Sanjeewani, D.M.N.M.; Gunarathne, Y.M.C.; Fernando, A.G.N.K.
    The Basel framework is an international regulatory accord that introduced a specially designed set of reforms to improve the regulation, supervision, and risk management of the banking sector. Credit risk, market risk, liquidity risk, and operational risk are the main four risk factors in the Basel III framework. As the risk being the main challenge faced by the banks, they tend to apply the Basel framework to mitigate it but they are exposed to various risks and thus the performance of the freamework is not guaranteed. Therefore, this study endeavored to explore the applicability of the risk model identified by the Basel framework on advancing the financial performance of licensed commercial banks in Sri Lanka. Further, this study expects to identify other risk factors which are not identified by the Basel III framework to develop a new risk model. This study was conducted using a mixed-methods approach. The quantitative method was applied to investigate the risk in Basel framework on financial performance and data were collected from 10 licensed commercial banks for a span of 10 years. The qualitative approach was used to identify other risks faced by the banks and data were collected from 10 bank managers using the in-depth interview method. The panel data regression analysis was used to analyze the quantitative data using E-views software. The thematic analysis was used to analyze qualitative data. The results revealed that there is a significant relationship between capital adequacy ratio in credit risk and the financial performance while other risk factors show an insignificant relationship. Then, the researcher has expanded the Basel Framework by introducing a new risk model using the thematic analysis. The researcher recommended to apply the most compatible risk model to derive better measurement to calculate bank risk in future research. Keywords: Capital adequacy, Financial performance, Basel Framework, Bank risks