Impact on Size of Efficiency of Commercial Banks: Evidence From Commercial Banks of Nepal Research 2022

Running head: IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS:
EVIDENCE FROM COMMERCIAL BANKS OF NEPAL
Impact on Size of Efficiency of Commercial Banks: Evidence from Commercial Banks of Nepal
Name of the Student
Name of the University
Author’s Note

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IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
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Acknowledgement
I would like to thank my University and the professor for allowing me to contribute as well as
providing opportunity to complete my research despite of all challenges that I have faced. It will
not forget the efforts that are made by the professors and other for guiding me with patience,
guidance and understanding. I would not have completed this research without their guidance
and understanding and you are all special to me.

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IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
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Abstract
The research basically focuses on the effect of measure productivity on commercial banks that
has focused on the focused on advertise as well as the common depiction of the recompense
procedures that are given to the commercial banks in Nepal. The study comprise of five chapters
through which the research about has been conducted almost the effectiveness of commercial
banks in Nepal. The primary chapter is the presentation which focuses out the common
information about the consideration in conjunction with the company. The targets of the inquiry
about has been talked about in this part together with the research limitations. Additionally, it
moreover incorporates the research questions beside aim and targets of the research. Within the
moment chapter, it comprise of writing survey which focuses out the variables that are to be
tended to within the study. It comprise of openings and dangers alongside assessment of
competitive advantage and methodologies for improving the execution. In chapter three, it
highlights the strategy which focuses out the strategies through which the research has been
conducted. It incorporates the reasoning, approach, plan, information collection strategy and test
of the research about. The fourth chapter incorporates the outcomes about and discoveries where
the outcomes about are to be assessed and examined as per the current circumstance which it
highlights the estimating, assessment, openings, dangers and competitive methodology. Within
the final chapter, it bargains with the conclusion where the concluding ideas have been said at
the side tending to the objectives and certain proposal. The proposal that have been specified
would offer assistance the company to manage with the dangers and challenges that are
confronting in current situation. Additionally, the long run research has too been given through
which the research can be upgraded in future a long time.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.2 Problem Statement.................................................................................................................7
1.3 Aims and Objectives..............................................................................................................9
1.4 Research Questions..............................................................................................................10
1.5 Scope of the research...........................................................................................................10
Chapter 2: Literature review..........................................................................................................12
2.1 Size of Banks.......................................................................................................................12
2.2 Factors affecting size of efficiency of commercial banks...................................................14
2.2.1 Return on Assets (ROA)...............................................................................................15
2.2.2 Net interest margin.......................................................................................................15
2.2.3 Credit to Deposit ratio..................................................................................................16
2.2.4 Interest Spread..............................................................................................................16
2.2.5 Capital adequacy ratio..................................................................................................17
2.3 Impact of Size on Efficiency...............................................................................................17
Chapter 3: Research Methodology................................................................................................20
3.1 Research Onion....................................................................................................................20
3.2 Research Philosophy............................................................................................................21
3.3 Research Approach..............................................................................................................22

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3.4 Research design...................................................................................................................22
3.5 Data Collection process.......................................................................................................23
3.6 Sampling method and sample size.......................................................................................24
3.7 Ethical consideration...........................................................................................................24
3.8 Timeline...............................................................................................................................25
Chapter 4: Data Collection and Analysis.......................................................................................26
Chapter 5: Findings........................................................................................................................39
Chapter 6: Conclusion and Recommendation...............................................................................42
6.1 Conclusion...........................................................................................................................42
6.2 Recommendation.................................................................................................................44
References......................................................................................................................................45
Appendices....................................................................................................................................50

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Chapter 1: Introduction
The financial crisis in the recent years plays a crucial role in banking sector along with its
overall efficiency. Increase in overall competition and the factors of globalisation has put
forwarded their higher efficiency that puts certain impact on the size of the commercial banks.
Despite of all of the improvements in the sector of banking, the progress of efficiency and the
strict regulation along with the position that is stable risk in nature mainly highlights the overall
position of the bank (Bhattarai 2016). These can be easily impaired along with the facts that
mainly motivated the overall empirical work in the recent years for assessing its overall
performance along with the risk that indicates in the industry of banking. In recent studies it has
been found that the impact of bank specific macroeconomics mainly determines the overall
profitability of the bank.
It also includes an important direction towards the empirical investigation which points
out the overall influence of the overall structure of ownership and the structure on its
profitability. As per the new aspect of the research, it is mainly dedicated to the efficiency
measurement along with the influences of the overall performance of the bank (Bhattarai 2017).
The study expected numerous components might influence the benefit comes about within the
inlet locale. Bank measure was accepted one from the imperative components that impact
productivity for inlet banks. The estimate of the full amount of money has been found with a
critical impact on banks productivity. By knowing the linkage between bank estimate and
proficiency will offer assistance to get it in the event that bigger bank are required to decrease
the cost of banks and give higher return to speculators or not (Bhattarai 2018). The investigation
that mainly uses two main methodologies which would be useful for the commercial banks are

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directly linked to the relevance of the cost efficiency that would provide stock performance of
the commercial banks.
This particular study is mainly focused on the commercial banks in Nepal which mainly
points out the positive impact of the efficiency in which the values are created as the operating
earning exceeds the overall cost of invested capital. It has also been estimated that the positive
cost of influence provides the efficiency of the shareholders who have observed the overall
influences on the commercial banks of Nepal (Panta and Bedari 2015). The industry is
developing at a fast rate which would draw in more number of workers towards the companies.
Expanding the number of firms would too increment the number of workers that would improve
the sum of lending and other exercises such as money related bolster, keeping money
administrations, loaning cash at certain intrigued rates and others. Both national as well as the
universal companies of Nepal takes after the driving way of giving the great quality of
administrations to the clients (Teshome, Debela and Sultan 2018). Creating the working
condition of the specialist is the most extreme vital portion which are to be upgraded inside the
given time period. The specialists of distinctive segments has confronted a few of the issues
which are to be included with improvement of the working condition within the banks.
This particular country include of inaccessible claimed banks and commercial banks
which are to be included interior the investigation almost. The foremost reason of the think about
is to highlight the distinctive sorts of effectiveness at the side their impacts (Marahatta et al.
2016). It has additionally been communicated that the keeping money division in Nepal requires
a number of enhancement for their headway which would increment the by and large era inside
the generation lines and increase the entirety of emolument to the pros. The Overall Assets of
commercial banks at conclusion of Saar 2074 BUS was Rest. 2621230.37 Million. Indeed in

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stock showcase, Commercial Banks plays prevailing part as both delicate and add up to NAPES
List is dominated by the development in cost of Stock of Money related things (Sharma, Pant
and Thapa 2014). The imperative status of the money related knowledge within the monetary
environment of the economy has energized the analysts to ask into the determinants of
productivity. Growing the number of banks would as well increase the number of agents that
would overhaul the whole of remuneration and other works out such as effectiveness of
commercial banks, loaning capacity and others.
1.2 Problem Statement
The problem basically centres on the effect on the proficiency that are given with the
commercial banks of Nepal and it has too been famous that the increment within the concerns for
the commercial banks that are getting less significance (Amatya 2016). The issue with the effect
on their proficiency that are provided to the banks within the keeping money segment of Nepal
basically highlights as they are getting the proper productivity inside the allocated time. It is
required to be expanded with the effectiveness of banks beside long working hours, hazardous
condition, and delay in instalment of salaries. The corporate social obligation is additionally
included within the industry because it pulled in generally worldwide mindfulness together with
enhancing the reverberation within the economy of the world (Gizaw, Kebede and Selvaraj
2015). It has been caught on that in creating nations, most of the specialists of distinctive
segments are getting their correct proficiency of the banks which would be advantageous for the
financial institutions. The outside partners of the keeping money divisions besides upgrading the
settled rate that are related with the managing an account businesses (Lucky and Nwosi 2015).
The issue with the proficiency that are given to the banks inside the banking division of Nepal
fundamentally highlights as they are getting the correct instalment interior the allocated time.

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It is required to be extended with the instalment of stipend in conjunction with long
working hours, unsafe condition, and delay in instalment of stipend. The exterior accomplices of
the keeping money divisions at the side overhauling the settled rate that are related with the
money related idea businesses (Kingu, Macha and Gwahula 2018). There would have been the
credibility of dodging passing in case the building had an elective outside staircase. It is the
managing an account commitment to prompt the masters inside the case of solvency or financial
ratios. It is the commitment of masters, to memorize how to overcome risk inside the working
environment. There can be diverse other perils and confinements of not having predominant
wage rate in banking industry. The people who do not have way better exhibitions by and huge
endeavour to dodge appraisals indeed within the occasion that there is an emergency
circumstance (Boadi, Li and Lartey 2016). This might lead to a put off care of the specific calm
and can be trade debilitating for commercial banks. In later times central bank of Nepal has
given significance to making bigger money related idea through its merger arrangement.
There are there state controlled commercial banks holding gigantic sum of resources and
expansive number of branches. They are anticipated to perform way better compared to little
measure money related teach. For case on the premise of add up to resources the largest bank at
end of 2016/17 was ROBB with add up to resources of 173.54 billion compared to littlest bank
i.e. Civil bank with add up to assets on as it were 41.72 billion (Ata and Buğan 2016). The
measure of financial institutions has been expanded due to merger. In such circumstance the
desire is that through merger the proficiency of organization can be expanded. The think about is
valuable to discover the questions and to fulfil the hole of prior studies. Different authors carried
out in numerous portion of world with respect to the effect of bank measure on performance of
bank appears diverse result. A few creator contend that estimate does not have any noteworthy

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effect on the execution of bank, whereas other contend that estimate do have effect on level of
proficiency (Nepali 2018). This consider appears the effect of measure on execution of Nepalese
commercial banks and reply on the off chance that Nepalese commercial bank have
accomplished economies of scale or diseconomies of scale. By taking board information of 28
commercial banks for five a long time from 2012/13 to 2016/17 (Bhattarai 2014). This ponder
look at the effect of estimate on productivity level of bank by controlling other factors.
1.3 Aims and Objectives
The aim of the study is to find the issues that is related with the impact on size of
efficiency of commercial specially the commercial banks of Nepal. The aims and objectives of
the study has been mentioned and discussed on the following part.
Aims
The basic point of this research is to bring around an appraisal of the proficiency for
judging its competitiveness inside the research.
Objectives
The objectives of the study has been mentioned in the following part.
1. The objective is to dismember the assessing structure of the worker's stipend and make
sensible evaluations from the figured out structure.
2. The other objective is to see at the openings of impact on efficiency of commercial banks in
Nepal which would offer help the companies in its advancement and enhancement inside the
grandstand.

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3. The extreme objective is to recognize a competitive strategy that would progress the
advancement and progression of banking industries division exhibit among its competitors.
1.4 Research Questions
The following are the research questions that has been asked to the employees of the
commercial in Nepal along with their institution’s efficiency that are associated with them.
1. Does size of financial institutions effect the level of efficiency?
2. What are the opportunities and threats prevailing in the banking sector of Nepal?
1.5 Scope of the research
The research is totally based on the impact on size of efficiency of commercial banks in
Nepal that can be considered with the evidences that are associated with the study. In this
manner, the scope of the study has shed light on the impact on size of efficiency of commercial
banks in Nepal. This examine can be considered as a multidisciplinary field of consistent
examination that's utilized for analysing the conduct and effect of productivity of commercial
banks on the social components (Alshatti 2015). In a broader sense, this explore would
endeavour to see into the impact of the quality and brought of commercial banks on the social
components, financial systems, definitive operations, wellbeing advancements and other
individual hones. More often than not in the long run related to the mental health and well-being
of the individuals of the society. This particular ask about too tries to stress on the improvements
that are ceaselessly happening inside the particular approaches of effect of commercial banks.
This consolidate changes in different arrangements such as suitable estimate of the banks that are
show in Nepal and those got to be highlighted with the changes in their inner environment
(Mbella and Magloire 2017). The changes are taking put in orchestrate to address the care,

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quality and capability of the in common mechanical approaches and plans. The request almost in
addition looks at the impact of the unused treatment advancements on the by and large
effectiveness of the commercial banks that influences it’s generally benefit. The study in addition
valuable since it highlights the commitment of the productivity rates to the proficiency of the
people as well as to the complete populace of the banks. Ordinarily required for understanding
the execution of the system of stipend and the impact of the mental wellbeing courses of action
on the nature of the common open (Kattel 2015). Through this examine the common open would
choose up a more significant understanding into the great thing approximately commercial banks
in Nepal and its effect on the sizes and take basic exercises in organize to create strides there in
common benefit of this specific industry.

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Chapter 2: Literature review
This particular chapter brings around the focuses of intrigued of the unmistakable factors
of effect on the sizes that centres on the commercial banks in Nepal through the think
approximately of composing. The focuses to be inspected in this chapter are the common
depiction of effectiveness of the commercial banks, assessing and competition of the keeping
money industry, the different openings and threats which are winning inside the keeping money
industry (Bhatta 2016). All these factors are evaluated on the introduction on rate of reward of
keeping money businesses in Nepal for the reason of deciding its competitive advantage inside
the exhibit. A rundown of all the composing considers is given at the conclusion of this chapter.
2.1 Size of Banks
The size of banks mainly highlights the overall volume of the bank on which it perform
its business activities which would play an important role on efficiency of the banks. The size of
the bank is mainly measured by the natural algorithm which would value its assets that are
present on the bank and maintaining its overall activities (Abdullah and Naser 2015). Bank
estimate alludes to the volume of add up to resources a bank have. In numerous past investigate
the measure of bank is spoken to by log of add up to resources of the banks. Agreeing to
Deutsche bank add up to resources or add up to income can be a great estimation of bank
measure. It can be contend that Banks have great reasons to accept benefit and estimate are
related. Different types of ratios are to be performed for enhancing the overall efficiency of the
banks that are acting as commercial banks in Nepal. Expanding bank estimate can increment
bank productivity by permitting banks to realize economies of scale (Koirala and Sapkota 2015).
For illustration, expanding estimate permits banks to spread settled costs over a more prominent
resource base, subsequently diminishing their normal costs. Expanding banks’ resource measure

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can moreover decrease chance by expanding operations over item lines, divisions, and districts.
Both side of the banks that is funding side and activity side as well as the activity side points out
the overall involvement of the assets in the banks along with effecting its efficiency
(Refer to
Appendix 3).
It has been seen that these components have an impact on the individual’s take-up of
particular preventive organizations. This would along these lines influence productivity in
managing an account industry in Nepal and their outcomes about of the different individuals.
The characteristic channel is conducted in this composing consider for recognizing the linkage
between masters productivity and other portion or affiliation (Said 2018). The generally consider
clarifies that honest to goodness causes an essential impact on the providers of reserves for
reward and so the clients can easily go for obtaining in any managing an account company that
would take into thought all the normal factors. The impact of environment on the movement of
remuneration by these advantage providers are as well inspected in this paper. This ask
approximately takes into thought both the common depiction as well as specific depiction of
articles of commercial banks in Nepal (Pradhan and Parajuli 2017). The potential threats would
besides be found out in organize to recognize the threats and hindrances of the accounting ratios
and the ways by which the competitors can take advantage of their deficiencies (Parajuli 2015).
Inside the common portrayal the environment of banking segment in Nepal is talked around
focussing on the enveloping grandstand of the proficiency of commercial banks.
The research shows up that the quality of advantage is incredibly and the lacking private
providers by and expansive bolt in themselves in orchestrate to account for the bulk of funding in
their normal course of action (Poudel 2018). It has been observed through consider that there
have been introduction of various by the government which have by chance highlights industry.

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There are a number of a handful of inaccessible money related masters that have contributed
interior the Nepal arranged made keeping money portion. But it is not clear in case other
managing an account companies are giving more benefits than the private had firms. Banks
execution and value of ventures are continuously has been assessed through the drift and design
of benefit (Kurawa and Garba 2014). The Proficiency level of monetary teach influences to all
partners as most proficient knowledge gives tall return to shareholders, pays in time to leasers
and gives effective administrations to investors as well as way better offices to staff of an
institution. The basic composing consider that is conducted on the present of efficient and its
effect on commercial banks in Nepal has the objective to form a system for understanding the
linkage between pros effectiveness and other division affiliations through typical channel. This
would along these lines impact effect on commercial banks in Nepal and the results almost of the
arranged people (Poudel 2015). Thus considering the execution level of bank is subject of
intrigued of different parties such as financial specialists, banks, shareholders, government as
well as open and analysts. Budgetary knowledge are taken as one of the alluring trade due to
capacity of producing higher benefit. In any case at the same time they are most hazardous trade.
The examination appears up that the quality of advantage is unimaginably more and the
inadequately private suppliers by and gigantic jolt in themselves in organize to account for the
affect in measure effectiveness
(Refer to Appendix 3).
2.2 Factors affecting size of efficiency of commercial banks
There are different factors that affects the overall size of the commercial banks in Nepal
along with its efficiency which points out certain aspects that are required to be considered.
Some of the factors have been discussed which mainly effect the impact on its size and
efficiency of the commercial banks in Nepal along with their business activities in their normal

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course of business (Adhikari 2014). The factors that affects are the return on assets, net interest
margin, and credit to deposit ratio, interest spread and capital adequacy ratio which have been
discussed in the following part.
2.2.1 Return on Assets (ROA)
Return on assets is a type of indicators which mainly points out the overall amount of
return from the assets that are available in the company in a particular financial year. It shows
that how profitable is the company at the time comparing with the total amount of total assets
(Mustafa, Işıl and CEYLAN 2016). Moreover, it sets a clear ideas of how the assets are to be
utilised and how efficient are the management of the company by using the assets along with
generating the earnings. In other words, Return on resources is proportion of net income to add
up to resources utilized by the firm. It measures the resources productivity of an organization.
Higher level of ROA speak to tall level of proficiency and moo level of ROA speak to moo
resources proficiency. It can be contend that ROA is nice marker of resources effectiveness of a
firm (Aspal and Nazneen 2014). Return on assets is mainly denoted in terms of percentage and it
is calculated by dividing net income of the company by total amount of assets of the company.
2.2.2 Net interest margin
Net interest margin is a type of accounting ratio which points out the measurement of
how successful a firm is dealing with its funds along with comparing with the similar kind of
investments. This particular ratio might come in both negative as well as in positive terms which
means that the company (Nataraja, Chilale and Ganesh 2018). Negative result mainly points out
that the company has not made that kind of optimal decision making which would exceeds the
expenditure over the total amount of income. In other words, net interest margin is proportion of
net intrigued wage and gaining resources. The net interest income is contrasts between interest

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income and interest costs. The Net Interest Margin ratio measures the benefit a company makes
on its contributing exercises as a rate of add up to contributing resources. Banks and other
budgetary teach ordinarily utilize this proportion to analyse their venture choices and track the
benefit of their loaning operations (Waleed, Shah and Mughal 2015). This way they can alter
their loaning hones to maximize benefit. Net Interest Margin = (Investment Income – Interest
Expenses) / Average Earning Assets. Gaining higher net interest margin speak to higher
effectiveness of banks.
2.2.3 Credit to Deposit ratio
Credit to deposit ratio is mainly used for accessing the liquidity of the banks that points
out the overall comparison of total bank loan to total deposit for a certain period of time. It is
expressed in the terms of percentage which highlights in the financial statement of the
organisation. In other words, The credit to deposit proportion is utilized to evaluate a bank's
liquidity by comparing a bank's add up to advances to its add up to stores for the same period
(Khanal and Bhatta 2017). In the event that the proportion is as well tall, it implies that the bank
may not have sufficient liquidity to cover any unexpected support prerequisites. Alternately, on
the off chance that the proportion is as well moo, the bank may not be gaining as much because it
may well be. It is profoundly influenced by the central bank's choice. Besides, it focuses out that
the CDR affect emphatically on open division bank's money related execution. Essentially, it has
been found that credit to store proportion has positive affect on productivity level of banks
(Ibrahim 2015). It is generally calculated by dividing total loans with total deposits within the
allocated time period.

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2.2.4 Interest Spread
It is mainly the overall difference of the average yield along with other interest accruing
activities that are being received by the financial institution from the loans. It is considered as
one of the key determinants of financial institutions in their evaluation of profitability (Rajbahak
et al. 2014). Interest spread is distinction between intrigued charged by banks on their loaning
and interest paid to costumers on their store liabilities. Intrigued rate is the cost a borrower pays
for the utilization of cash they borrow from a bank or money related institution. The contrast
between the borrowing costs and net return on loaning characterizes the mediator costs caused by
commercial banks. Intrigued spread has positive affect on productivity level
(Refer to
Appendix 3).
2.2.5 Capital adequacy ratio
It is the accounting ratio which mainly measures the overall available capital of the bank
along with the risk weighted credit exposure. It is generally expressed in terms of percentage and
it is used for protecting the depositors and promoting the overall stability along with the
efficiency of the financial systems. In other words, Capital adequacy ratio is holding of add up to
capital support compared to its add up to hazard weighted introduction. A few have inspected the
impact of capitalization on the managing an account execution counting and found that the
foremost capable banks are those which oversee to preserve a tall level of possess capital
compared to their resources. In any case a few analyst have inverse result (Kadioglu, Telceken
and Ocal 2017). Generally, capital are measured in two tiers where it can absorbs losses without
ceasing the trade of the bank and absorbs the overall amount of losses without winding up the
company and providing protection to the depositors.

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2.3 Impact of Size on Efficiency
Bank obtain expansive sum of resources and plays prevailing part in budgetary showcase.
In any case they are squandering colossal assets due to moo effectiveness. The cruel in general
productivity for the Australian managing an account segment as a entire for the period 1995 to
2005 is found to be as it were 41.8%, demonstrating sufficient scope for productivity changes.
Effectiveness execution has declined from 44.5% in 1997 (top) to a Low of 39.6% in 2004
(Banerjee and Majumdar 2014). Proficiency is basically concerned with either taken a toll
minimization or benefit maximization. Proficient bank execution suggests change in
productivity, increment in volume of reserves channelling through the framework and more
noteworthy security in terms of moved forward capital buffers in retaining hazard. Inside the
specific depiction a case has been chosen that relates to effectiveness of commercial banks in
Nepal. Effectiveness is accomplished when organization produces more yield compare to input.
The definitions of taken a toll and benefit proficiency compare with two critical financial targets,
specifically, cost minimization and benefit maximization. There are different speculations
created with respect to the level of effectiveness level of money related teach and they gives
questionable comes about. It expect that as it were expansive banks with separated items can
impact costs and increment benefits. The signalling and insolvency cost theories state that the
next capital signals emphatically to the showcase on the esteem of the bank. The Hazard Return
Hypothesis contends that capital and bank productivity are contrarily related with the banks. A
solid capital structure is emphatically related to bank proficiency. Value to add up to resources is
utilized as an intermediary to degree capital quality of banks focuses out that Poor resource
quality causes bank disappointments (Shrestha, Thapa and Phuyal 2017). They contend that

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destitute resources makes a negative effect on both bank’s productivity as well as effectiveness
by decreasing the intrigued pay and expanding the arrangements costs.
The experimental comes about are blended and a few ponders unveil a positive
relationship between bank measure and ROA. It has too been found that bank measure measured
by logarithm of add up to resources has critical positive affect on Return on Resources (ROA).
The impact of measure is immaterial for ROA and there is a plausibility that expansive banks
may create moo benefits (Banerjee and Majumdar 2014). Financial knowledgeable employments
the support collected from Public (depositors), Creditors and Shareholders and they are utilized
to win benefit (Gitundu et al. 2016). Commercial banks are prevailing players of monetary
showcase and holds huge sum of stores (assets). The particular courses of action, evaluating
strategies and other operations of the company are judged in orchestrate to encourage a graph of
the payment of master in Nepal promote which is being explored upon. In any case, the bank
measure does not matter in deciding the productivity of commercial banks. It has been found
converse effect of estimate on productivity of banks. It also includes the objectives of measuring
the efficiency level of Nepalese financial institutions and to examine the impact of size of
financial institutions on profit efficiency of financial institutions. The examination of uncommon
to look at on the unmistakable steps that are being taken after in coordination commercial banks
at the side their effect on the efficiency of the commercial banks (Helhel 2015). It has been
measured the proficiency level of commercial bank of Nepal utilizing Malmquist File found
decrease in productivity level. He contend that the advancement in execution is due to
technological progression instead of increment in effectiveness (Kadioglu, Telceken and Ocal
2017). The prior inquire about with respect with respect to the estimation of proficiency of

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Nepalese banks gives disputable result which increments the level of effectiveness in Nepalese
commercial banks
(Refer to Appendix 3).

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Chapter 3: Research Methodology
3.1 Research Onion
Figure 3.1: Research Onion
(Source: Saunders et al. 2007)
The research onion fundamentally centres out the clear state of the explore topic through
which the analyst is required to require after for a compelling methodology. The rationale of the
research almost is to be highlighted where it requires the by and huge rationale of the research
about around at the side certain procedure that are to be included inside the study. The taking
after step is the research around approach and it centres out the source by which the approaches
would be made for the research and those need to be begun interior the inquire about. Plan of the
research to boot to be inspected and recognizes the strategy through which the plan has been
made for the study alongside showing out the noteworthiness (Rajbahak et al. 2014). The

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strategy of data collection for the foremost portion centres out the procedures or ways through
which the data have been collected. Reviewing technique and testing gauge centres out the for
the most part degree of the test through which the data have been collected. Data analysis and
findings mainly points out the way of examining the data that have been collected from the
secondary sources where the list of banks in Nepal has been considered. In addition to this,
ethical consideration has also been included after the overall process of collecting the
information that have been collected from the websites of the selected banks.
3.2 Research Philosophy
The strategy through which the important data has been collected and dismembered for
the benefits of the research. Epistemology fundamentally negate to doxology for incorporates
unmistakable sorts of rationale and the research. Positivism essentially holds the substantial
information nearly the research around which gives the researcher a far off superior and more
grounded progressed data. Realism is another type of research philosophy that points out the
issues that have been raised inside the research (Khanal and Bhatta 2017). The ordinary consider
highlights the properties and relations which highlights the ways through which the examination
is utilized to be conducted at the side creation of thoughts which would be invaluable for the
research. The explore deals with the possibility of the cashless trade which gives certain benefits
to the clients in their day by day trade (Waleed, Shah and Mughal 2015). Moreover, the
philosophy of the research is to highlight the nature of the methods which would help in
analysing the results that have been collected from the secondary sources. This particular
research is based on positivism which proposes that the study about gives the positive data
around the impact of size efficiency of commercial banks in Nepal.

23
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
3.3 Research Approach
It is the plan and method that are required to be utilized inside the research which centres
out the major assumptions of the think approximately. It additionally highlights the strategy that
offer help the research around for certain wide doubts and examination of the methodologies that
are required to be taken after all through the ask approximately (Nataraja, Chilale and Ganesh
2018). There are different types of research approach among which quantitative research and
qualitative research are the most common. Qualitative research includes the direct opinion of the
respondents which points out the clear information about the issues. On the other hand,
quantitative research is mainly based on statistics which are collected from the information that
are readily available. The point by point handle of technique of data collection is to be related
with examination and those are to be pointed by the explanation of the results around of
examine. The issue of the examination is to be tended to and the approach of the data to boot to
be pointed with the by and huge ask almost. In this particular ask almost, the assumptions that
are made centres out the reasonable examination of the data that are being collected for the
researcher. In this study, quantitative research has been considered as the information about the
banks are statistically analysed.
3.4 Research design
The plan of this particular research essentially planning the particular sorts of comes
approximately which are to be related with the research about approximately. Coordination of
different components in a coherent way and in a coherent way is to be related with the thought
by the investigator (Aspal and Nazneen 2014). The issues that are related with the research
around to boot to be recognized in this parcel and those are to be included with certain handle.
Experimental design is a type of research design which is directly based on the research and

24
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
correlation design is the type of statistical analysis that analyses the data which have been
gathered for the research. In this research, correlation research have been chosen as the data that
are gathered from the bank are statistically analysed. The examine arrange essentially centres out
the copy or the blue print of collection at the side the measures and those are as well to be
dismembered with the data that have been collected. Particular sorts of examine arrange are
show inside the think around which centres out the compelling arrange for asking around the
achievability of productivity by the clients. Exploratory design inquire almost arrange and
realistic examine arrange are there three essential sort of examine arrange which are broadly
utilized and open to any examiner (Adhikari 2014). The experimental design for the investigation
would be pertinent for the study because it comprises of the effects of specific circumstance
alongside the variable which are to be included with the research.
3.5 Data Collection process
Information collection prepare of the strategy through which the sensible data are
collected and measured next to the variable of charmed. The productive handle which engages
the examiner to answer the research approximately questions adjacent to the test theory and
evaluation of comes about (Poudel 2015). Process of data collection includes primary data
collection and secondary data collection. Primary data collection mainly deals with survey, direct
observation and questionnaire to the selected participants. Secondary data collection includes
collection of data from internet source and other areas where the data are readily available. In
this research, secondary data collection have been chosen. The information that have been
collected for the think almost is from fundamental sources which suggests 28 banks that have
been tended to for certain points of view and they have accumulated from the yearly reports.
Some of the banks inside the research don't have the information to a couple of the effect of

25
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
productivity on commercial banks of Nepal. The issues and openings is required to be
recognized for collection of data at the side setting the destinations for the most part handle of
collection of data (Poudel 2018). Arranging is required to be done for the approaches and
procedures for better examination of the results approximately nearby dismembering and
disentangling the data that have been collected from the annual reports.
3.6 Sampling method and sample size
Sampling method is the way by which the test are being amassed for the research and the
appraising of the test in addition to be included with the examination. In this particular ask
around, self-assertive testing has been chosen where each portion of the people contains a rise to
opportunity for analysing the information that has been collected from the banks. In this
particular research, 28 commercial banks of Nepal has been selected from which the annual
report of each bank for the last five years have been extracted for analysing the data.
3.7 Ethical consideration
It is one of the basic portion of the research which got to be taken after in a particular
way and ought to be considered all through the analyst. All the information that have been
included inside the examination are not obliged for collecting the information (Said 2018). All
the data that have been collected from the banks are as per their accessibility on their particular
site and none are compelled to do so. The data that have been collected are kept in a secure put
along with making a difference from Data Protection Act. All fundamental data have been
collected in an ethical way nearby considering their regard for the examination. The data that
have been collected should not be harmed or damaged in any ways and the sources is required to
be prioritized. Any kind of communication that are related to the research is required to be done

26
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
in an honest way and maintaining the transparency. The confidentiality of the research data is to
be at the adequate level which would ensure the level of data that are collected for the research.
3.8 Timeline
(Refer to Gantt chart)

27
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Chapter 4: Data Collection and Analysis
The data that has been gathered for the research is solely from the secondary resources
and from the official websites of the selected commercial banks of Nepal. Different set of
variable has been selected which includes both dependent as well as independent variables that
are mainly used for measuring the works from the previous research. Moreover, the total amount
of total assets is used for representing the size of the banks and the return on assets is used for
representing the proxy of the efficient level. The collection of data has been performed from the
banks that has been selected for the research and some of the banks along with their information
are not available. For that reason, those banks have been dropped and their data has been
collected along with its analysis. Entry and analysis process includes some of the research
processes which deals with some of the brief description of each elements that are present in the
research. Some of the elements along with their description has been mentioned as follows.
Variables:
Dependent variable: Efficiency level
Independent variables: Size of Financial Institutions
Control Factors:
Internal factors (Expenses, NIM, CAR, Ownership, and Government linkage) external factors
(Growth, Inflation)
Methods:
The relationship between explanatory variables and profit efficiency will be investigated using
Pooled OLS regression with the help of 5 year panel data.
Model:
Profit efficiency = β 0+β 1 Sz +β 2 IS + β 3 Npl+ β 4 Car++ β 5 Cdr+ β 6 I + β 6 G+ ϵ

28
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Where, NIM= Net interest margin,
Exp=Expenses
Sz= Size
CAR= capital Adequacy Ratio
G= Growth
I= Inflation
CDR= Credit to deposit ratio
Npl= Non performing loans
n= no of year of operation
Therefore, the above mentioned variables has been included in the research which points
out the effective analysis of the data that has already been collected from the sources of the
banks. It has been mentioned that annual report of each bank is to be taken for the last 5 years
along with fourth quarter report and basel-3 disclosure report of the selected bank. Three data of
three banks cannot be retrieved and annual reports are also not available for those banks so, 25
banks data has been analysed within overall 28 banks that has been selected. The processing of
data after the procedure of collection includes the data that are directly from the secondary
sources and a statistics software has been used. The statistic software that has been for analysing
as well as processing the data is Stata 13 along with descriptive analysis and inferential statistics.
The strategy that is used for analysing the data mainly points out the descriptive analysis
and inferential analysis. For descriptive analysis, central tendency and dispersion were
performed. For inferential analysis, Correlation and regression were performed. The testing for

29
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
the hypothesis includes the effective relationship within the variables that are present in the
study. Correlation coefficient is required to be used for analysing the data that has been found in
the hypothesized that directs the data which has been included in the research. The data that has
been collected and analysed has been shown in the table as below which highlights the other
variables and the factors of the data.
Three banks are dropped as the banks were established after 2015 and the analysis is
considering current 5 years of data. The banks that are not considered, are Civil Bank
Limited, Century Commercial
Bank Limited and Sanima Bank
Limited.
The following table highlights
the descriptive statistics of the
parameters for all of the banks which
have been selected for the banks.
Variable Obs Mean Std.
Dev.
Min Max
ProfitEffi
~y
125 0.016
721
0.006
16
-
0.014
39
0.037
06
Bank Size 125 79896
.11
40022
.41
20571 19733
2
Expenses 125 4163.
842
2372.
486
1226 12562
.05
NIM 125 0.037
295
0.009
652
0.023
731
0.070
432
Capital
Str~R
125 0.199
407
0.075
357
0.106
115
0.664
493
GDPReve
nue
125 5279.
33
2826.
303
1490 13603
.75
IS 125 2623.
005
1657.
919
537 9114.
229
CDR 125 0.797
072
0.115
933
0.336
73
1.047
512

30
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Table 4.1: Descriptive statistics of the parameters of All Banks
(Source: Created by author)
The above table points out the descriptive statistics which points out the variables and
their mean, median, standard deviation and maximum of the data that have been collected. It can
be seen that the profit efficiency and the size of the banks. The expenses and the NIM has also
been included in the table which clearly states the Obs along with other variables of the data.
Moreover, the GDP revenue and capital structure has been included which points out the IS and
the CDR of the processed data that has been collected directly from the bank.
The following table points out the average, maximum, minimum value of the selected
parameters of all of the selected banks. It has been stated as per the banks along with their
variables that has been pointed in the above mentioned table.
Company_1 Profit~
y
BankSi
ze
Expens
es
NIM Capita~
R
GDPRev
~e
IS CDR
1. Nepal Bank
Li
0.0159
54
108135.
7
5599.7
87
0.0565
51
0.29200
3
6628.919 4583.4
19
0.7129
25
0.0278
58
133467.
2
6323 0.0592
77
0.38684
3
9229.436 6387.7
46
0.8195
97
0.0054
85
80405.4 4580.6
46
0.0512
46
0.17941 5011.23 2823.5
8
0.5944
58
10. Bank of
Kath
0.0115
8
68363.3
2
3997.4
47
0.0344
06
0.16922 4971.656 2122.7
76
0.8486
01
0.0157
47
91206.8
1
6829.4
11
0.0367
5
0.23007
2
8365.625 3059.1
26
0.8891
74
0.0065
07
39034 2157 0.0312
66
0.14785
6
2609 1219 0.8083
23
11. .Nepal
Credi
0.0200
54
47600.0
7
3414.7
33
0.0318
72
0.16858
3
3776.164 1503.0
73
0.8134
92
0.0370
6
76745.4
1
7136.0
84
0.0392
85
0.19179
4
7010.289 2848.0
36
0.8708
89
0.0116
23
25224 1608 0.0251
41
0.12874
5
1935 784 0.7758
01

31
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
12 . NIC Asia
Ba
0.0123
41
93305.2
4
5669.0
15
0.0313
18
0.18276
2
6589.682 2453.4
65
0.8407
74
0.0161
55
170943.
2
12562.
05
0.0413
25
0.23900
1
13545.82 4209.6
64
0.9041
37
0.0078
09
51500 2918 0.0262
83
0.14739
9
3918 1577 0.7880
77
13.
Machhapuchc
0.0157
19
53463.4
7
3042.9
08
0.0318
57
0.16810
3
3707.736 1568.2
64
0.8252
0.0210
44
61377.1
4
4596.8
97
0.0359
65
0.24097
2
5427.432 1970.6
22
0.8794
28
0.0111
73
40724 2337 0.0273
36
0.10611
5
2836 1116 0.7750
31
14. Kumari
Bank
0.0128
13
51280.3
4
3042.2
02
0.0280
53
0.19722
5
3615.378 1281.2
56
0.8764
21
0.0171
93
82723.5
5
5981.4
1
0.0324
39
0.29915
6
6804.01 2032.6
8
1.0475
12
0.0103
41
31021 2038 0.0237
31
0.12981
7
2411 835 0.7934
18
15. Laxmi
Bank
0.0126
11
57637.9 3397.0
37
0.0276
07
0.17923
7
3992.351 1430.2
17
0.8370
67
0.0145
89
80960.2
8
6026.7
06
0.0296
2
0.21264
4
7063.781 2332.2
92
0.9379
12
0.0091
75
34919 2199 0.0251
01
0.14897
4
2489 822 0.7428
09
16. Siddhartha
B
0.0161
22
75356.6
2
4371.5
4
0.0327
66
0.15313
9
5430.261 2192.8
79
0.8291
58
0.0174
04
119869 8325.4
12
0.0378
42
0.16523
9
10057 3436.2
59
0.8674
64
0.0151
44
40278 2480 0.0291
16
0.14109
6
3056 1347 0.7676
91
17.
Agricultural
0.0249
21
112763.
8
9068.8
62
0.0629
5
0.29301 10320.18 6013.9
5
0.9145
81
0.0357
13
135419.
6
12271.
56
0.0704
32
0.32455
3
13603.75 6985.2
8
0.9645
8
0.0175
81
86512 7314 0.0501
81
0.25536
2
8462 4622 0.8677
96
18. Global
IME B
0.0160
12
92129.2
7
5203.9
57
0.0364
94
0.17509 6480.875 2895.6
53
0.8158
43
0.0174
84
125847.
4
10011.
32
0.0425
72
0.19782
4
11481.73 3876.8
84
0.8808
0.0138
9
60018 3147 0.0319
17
0.16047
4
3810 1758 0.7929
38
19. NMB Bank
Lim
0.0146
25
70325.5
7
3769.2
07
0.0295
42
0.19050
5
4642.205 1855.3
99
0.8133
59
0.0164
94
112391.
4
7536.2
94
0.0315
72
0.28533
6
8728.7 2904.0
14
0.8956
68

32
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0.0121
2
30212 1501 0.0277
13
0.12703
3
2005 789 0.7431
04
2. Rastriya
Bani
0.0194
34
160991.
5
6689.0
04
0.0477
03
0.19702
2
8273.175 6090.2
88
0.6316
86
0.0332
74
197332 8920.2 0.0502
18
0.21968
5
12097.66 9114.2
29
0.7450
88
0.0141
52
122557.
9
5535 0.0430
52
0.16829
7
6104.6 3880.8 0.5341
04
20. Citizens
Ban
0.0186
2
54473.7
1
3385.5
02
0.0338
35
0.19929
5
4147.117 1594.4
62
0.8588
17
0.0248
16
77709.9
5
6086.2
89
0.0376
77
0.24862
5
7109.388 2222.0
68
0.9394
75
0.0154
55
32222 1825 0.0288
78
0.15525
1
2456 1073 0.7959
59
21. Prime
Commer
0.0177
05
62212.3
7
3548.4
84
0.0304
87
0.18249 4693.226 1726.5
94
0.8720
13
0.0205
15
95043.9
8
6845.4
91
0.0353
28
0.25129
2
8559.691 2665.9
15
0.9722
04
0.0145
41
38031 2181 0.0251
41
0.12106
7
2871 1060 0.7954
2
22. Sunrise
Bank
0.0140
99
56050.1
6
3392.1
72
0.0356
7
0.16196 4199.638 1778.0
65
0.8311
31
0.0178
42
82782.9
1
6450.8
88
0.0421
51
0.21337
8
7647.361 2870.9
28
0.8950
05
0.0083
27
29661 1835 0.0304
14
0.12120
3
2403 1095 0.7490
7
24. Prabhu
Bank
0.0114
34
58136.1
6
3507.9
72
0.0398
07
0.15499
3
4269.238 1885.2
65
0.7431
91
0.0218
88
82782.9
1
6450.8
88
0.0563
24
0.21337
8
7647.361 2870.9
28
0.8950
05
0.0143
93
21191 1835 0.0328
96
0.11155
9
1865 729 0.5487
27
25. Janata
Bank
0.0117
94
40863.8
3
2472.1
59
0.0290
66
0.17850
4
2946.288 1147.5
2
0.8896
16
0.0233
11
71234.9
8
5606.1
81
0.0346
62
0.25334
2
6611.076 2402.4
71
1.0096
72
0.0040
46
21009 1277 0.0253
13
0.13415
9
1490 537 0.8078
97
26. Mega Bank
Ne
0.0161
58
42990.4
4
2422.4
74
0.0376
01
0.21860
7
3142.425 1385.4
29
0.8709
64
0.0192
14
82064.9
5
4756.9
95
0.0477
08
0.27428
1
6022.145 2373.5
62
0.8995
49
0.0140
04
20571 1226 0.0295
55
0.16942
3
1628 821 0.8302
02
3. Nabil Bank
Li
0.0234
44
127111.
2
4405.3
03
0.0456
61
0.18094
9
7414.569 4674.7
06
0.7348
63

33
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0.0265
79
160978.
1
7406.6
72
0.0565 0.19910
4
11349.87 6262.0
59
0.8428
5
0.0180
52
87274.6
2
3179.2
6
0.0393
33
0.14683
1
5636.16 3526.2
8
0.6283
89
4. Nepal
Investm
0.0215
9
129511.
4
5644.3
81
0.0376
74
0.21382
2
8278.804 4144.4
1
0.7988
72
0.0256
97
171893.
5
10111.
69
0.0434
19
0.26188
7
13574.1 5850.1
78
0.8877
82
0.0188
02
86173.9
3
3809.9
5
0.0330
24
0.17610
6
5786.16 2978.8 0.7045
75
5. Standard
Char
0.0174
96
102138.
3
2015.2
1
0.0397
81
0.36024
2
3141.336 2279.5
02
0.4569
21
0.0250
65
171893.
5
3265.4
74
0.0465
54
0.66449
3
4940.675 3298.0
34
0.5617
18
0.0099
77
53324.1 1476.7
6
0.0301
46
0.15146
9
2415.58 1849.8
8
0.3367
3
6. Himalayan
Ban
0.0166
12
96156 4758.1
72
0.0423
99
0.16277
3
6243.709 3374.4
33
0.7833
18
0.0211
15
116462 8016.8
14
0.0488
46
0.17849
3
9724.871 4321.8
24
0.8704
0.0130
32
73590 2606 0.0375
91
0.15044
3
4628 2494 0.7007
34
7. Nepal SBI
Ban
0.0170
86
80272.9 4099.8
53
0.0395
78
0.19685
4
5368.087 2670.0
29
0.7657
52
0.0197
34
102538.
7
7087.9
6
0.0422
81
0.23937
3
9069.779 4144.9
68
0.8932
48
0.0151
11
59277 2741 0.0304
41
0.16308
7
3821 1745 0.6474
23
8. Nepal
Banglad
0.0219
99
47085.4
7
2765.1
08
0.0321
6
0.20524
4
3280.136 1383.4
64
0.8019
63
0.0256
62
61377.1
4
4596.8
97
0.0354
52
0.24097
2
5427.432 1970.6
22
0.8794
28
0.0186
39
30874 1864 0.0273
36
0.17053
6
2032 853 0.7251
33
9. Everest
Bank
0.0178
01
109048.
1
4413.5
59
0.0375
28
0.20354
5
6430.098 3540.6
02
0.7602
81
0.0220
03
144811.
1
7437.7
95
0.0480
53
0.22753
7
10103.45 4869.7
64
0.8394
64
0.0151
91
70445 3160 0.0336
14
0.14203
9
4996 2879 0.6556
67
Total 0.0167
21
79896.1
1
4163.8
42
0.0372
95
0.19940
7
5279.33 2623.0
05
0.7970
72
0.0370
6
197332 12562.
05
0.0704
32
0.66449
3
13603.75 9114.2
29
1.0475
12
0.0143
93
20571 1226 0.0237
31
0.10611
5
1490 537 0.3367
3
Table 4.2: Average, Maximum and Minimum value of parameters across All Banks

34
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
(Source: Created by author)
The above table is the main table which points out each of the variables as per the banks
that has been listed for its overall analysis. The efficiency of the commercial banks on the size is
to be mentioned for all of the banks of Nepal. On the top position, Nepal bank limited places that
highlights the profitability as per the size of the banks along with its expenses for the last five
years. The capital and the GDP revenue has also been mentioned with the IS and CDR which
have shed positive light on the average, maximum and minimum of the parameters that are
included in the study. The second position holds by the bank of Kathmandu that consist of
0.01158 of average proficiency that highlights the overall efficiency that affects the size of the
commercial banks. Maximum of this particular bank is the 0.015747 and minimum of the bank is
0.006507 that turns out to be holding a good position in the banking industry of Nepal.
Moreover, all of the above listed banks points out the average, maximum and minimum of the
variables that has been collected from the sources.
Fixed effect model is the statistical model which points out the parameters of the model
that would hold the position from certain non random quantities. The fixed effect model mainly
refers to the regression model which highlights the groups that are fixed and the data that are
arranged within the overall population. This particular model mainly highlights the groups which
consist of fixed quantity of the population that are mainly represented by the list of banks for the
research. The following table mainly points out the fixed effect model that is required to be
considered for analysing the data which have been gathered from sources of each bank.
Fixed-effects (within) Regres
sion
Numb
er
of obs = 125
Group variable: Compa
ny_1
Numb
er
of gro
ups
= 25

35
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
R-sq: Obs per group
:
within = 0.364
5
min = 5
between = 0.160
5
avg = 5
overall = 0.173
9
max = 5
F(7,93) = 7.62
corr(u_i, Xb) = -
0.763
4
Prob > F = 0
------------------------------------------------------------------------------------
-
ProfitEffi
ciency
| Coef. Std. Err. t P>|t| [95% Co
nf.
Inter
val]
--------------------
+----------------------------------------------------------------
BankSize | -
1.56E
-07
7.46E
-08
-
2.0
9
0.039 -
3.04E
-07
-
7.69E
-09
Expenses | 5.40E
-06
1.20E
-06
4.4
9
0 3.01E
-06
7.78E
-06
NIM | -
0.134
24
0.128
174
-
1.0
5
0.298 -
0.388
77
0.120
284
CapitalStruct
ureCAR
| 0.0146
8
0.012
582
1.17 0.2
46
-
0.010
31
0.039
665
GDPReve
nue
| -
7.06E
-06
1.51E
-06
-
4.6
7
0 -1E-
05
-
4.06E
-06
IS | 0.000
011
2.32E
-06
4.7
6
0 6.42E
-06
1.56E
-05
CDR | 0.024
126
0.010
17
2.3
7
0.02 0.003
93
0.044
322
_cons | -
0.002
09
0.010
423
-0.2 0.842 -
0.022
78
0.018
612
--------------------
+----------------------------------------------------------------
sigma_u | 0.006
249
sigma_e | 0.004
558
rho | 0.652
712
(fract
ion
of varia
nce
due to u_i
)
------------------------------------------------------------------------------------
-
F test that all u_i=0
:
F(2
4,
93) = 3.26 Pro
b
> F = 0
Table 4.3: Fixed effect model

36
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
(Source: Created by author)
The above table highlights the fixed effect model that is one kind of regression analysis
which mainly consist of groups and capital structure. It is mainly used for controlling the omitted
variable bias which constant over the time along with pointing out the process of removing the
data along with their differences. There are some of the assumptions which is used to be included
in the time variant as it would focus on the average of the group that highlights the differences
which includes the effective on the size of the banks. It also highlights the correlation along with
the profitability which turns out to be the testing for the hypothesis that has been associated with
the study.
Random effect model is also a model of variance components where the parameters are
included as per the random variables. This kind of linear model is mainly used for maintaining
the overall data that has already been collected from different sources. This particular model
mainly highlights the effective analysis of the data of the banks and those have to be highlighted
with the panel data along with assuming that no other fixed effects are being allowed by the
individual effects. The effects of the model is mainly used for analysing the hierarchical and the
data for the panel along with effecting the special cases. The assisting model of the random
effect is to be highlighted with the assumptions and the following table points out the random
effect model.
Random-effects GLS regressio
n
Numb
er
of obs = 125
Group variable: Compan
y_1
Numb
er
of grou
ps
= 25
R-sq: Obs per group:
within = 0.248 min = 5
between = 0.2676 avg = 5
overall = 0.2389 max = 5

37
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Wald chi2(7) = 36.52
corr(u_i, X) = 0 (assum
ed)
Prob > chi2 = 0
-------------------------------------------------------------------------------------
ProfitEffici
ency
| Coef. Std. Err. z P>|z| [95% Con
f.
Interv
al]
--------------------+----------------------------------------------------------------
BankSize | -
8.03E-
08
5.96E-
08
-
1.35
0.17
8
-
1.97E
-07
3.66E-
08
Expenses | 1.05E-
06
7.99E-
07
1.31 0.19 -
5.19E
-07
2.61E-
06
NIM | -
0.1692
9
0.1105
07
-
1.53
0.12
6
-
0.385
88
0.0473
04
CapitalStructur
eCAR
| 0.00849
3
0.0089
78
0.95 0.34
4
-
0.00
91
0.026
09
GDPReven
ue
| -
1.89E-
06
1.07E-
06
-
1.76
0.07
8
-
3.99E
-06
2.09E-
07
IS | 5.33E-
06
1.46E-
06
3.66 0 2.47E
-06
8.18E-
06
CDR | 0.0080
97
0.0083
97
0.96 0.33
5
-
0.008
36
0.0245
54
_cons | 0.0129
47
0.0093
09
1.39 0.16
4
-
0.005
3
0.0311
93
--------------------+----------------------------------------------------------------
sigma_u | 0.0014
68
sigma_e | 0.0045
58
rho | 0.0940
29
Table 4.4: Random effect model
(Source: Created by author)
The above table points out the random effect model of the data which has already been
collected from the secondary sources from different banks in Nepal and the table also analyses
the results that have been generated. The table of random effect model highlights the group and
variables that has been considered for the analysis of the study. The correlation has also been

38
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
mentioned which points out the groups and the average of the maximum value which is used to
be associated with the study.
Hausman test is a type of statistical test which is used for estimating the values of
comparing the overall alternatives of the factors that are associated within list of data. This
particular test mainly evaluates the overall consistency at the time of comparing with another
alternatives. At the effect of less estimator, it highlights the consistent variable that affects the
most to the overall elements. The data that has been gathered from the banks includes the
alternatives which are required to be compared with other variable for measuring their
consistency. The following table highlights the Hausman test for identifying the fixed as well as
the random effect of the analysis of the data.
fixed random Difference S.E.
BankSize -1.56E-07 -8.03E-08 -7.55E-08 4.48E-08
Expenses 5.40E-06 1.05E-06 4.35E-06 8.97E-07
NIM -0.13424 -0.16929 0.035042 0.064936
CapitalStr~R 0.01468 0.008493 0.006186 0.008815
GDPRevenue -7.06E-06 -1.89E-06 -5.17E-06 1.07E-06
IS 0.000011 5.33E-06 5.70E-06 1.80E-06
CDR 0.024126 0.008097 0.016029 0.005738
Table 4.4: Hausman test to identify the fixed and random effect
(Source: Created by author)
The above points out the Hausman test which shows the fixed effect as well as the
random effect along with the differences within the variables that are present in the list of data.

39
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
The following analysis points out the null hypothesis which includes the alternative hypothesis
that are systematic for its overall coefficient.
Null hypothesis, Ho: Difference in coefficients are not systematic
Alterative hypothesis, Ho: Difference in coefficients are systematic
Test statistic: ch i2 ( 3 )= ( b−B )' ( V b−V B )−1
( b−B ) =14.11
P ( ch i2 )=0.0028
The above chi-squared value and the p-value of the chi-square signifies that the null
hypothesis should be rejected. This implies that the differences in coefficient between fixed and
random are systematic. Hence the fixed effect model can provide accurate evidences.

40
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Chapter 5: Findings
This particular chapter mainly points out the overall findings of the research and the
ultimate results that has been extracted from the collection of data. The analysis of the data has
been found which points out the effective results that has been included within the study. It has
been said that yearly report of each bank is to be taken for the final 5 a long time at the side
fourth quarter report and basel-3 disclosure report of the chosen bank. Three information of three
banks cannot be recovered and yearly reports are moreover not accessible for those banks so, 25
banks information has been examined inside by and large 28 banks that has been chosen. The
preparing of information after the strategy of collection incorporates the information that are
straightforwardly from the auxiliary sources and an insights program has been utilized. The
measurement computer program that has been for analysing as well as handling the information
is Stata 13 in conjunction with expressive investigation and inferential measurements. The
procedure that's utilized for examining the information primarily focuses out the graphic
examination and inferential examination. For clear examination, central propensity and scattering
were performed. For inferential investigation, relationship and relapse were performed.
The testing for the speculation incorporates the viable relationship inside the factors that
are display within the research. Relationship coefficient is required to be utilized for dissecting
the information that has been found within the hypothesized that directs the information which
has been included within the research. The information that has been collected and examined has
been appeared within the table as underneath which highlights the other variables and the
components of the information. The expenses and the NIM has moreover been included within
the table which clearly states the Obs together with other factors of the information.
Additionally, the GDP income and capital structure has been included which focuses out the IS

41
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
and the CDR of the handled information that has been collected straightforwardly from the bank.
The effectiveness of the commercial banks on the estimate is to be specified for all of the banks
of Nepal. The settled impact show primarily alludes to the relapse show which highlights that are
settled and the information that are organized inside the by and large populace. This specific
show primarily highlights which comprise of settled amount of the populace that are primarily
spoken to by the list of banks for the research. It is basically utilized for controlling the excluded
variable predisposition which consistent over the time together with pointing out the method of
evacuating the information in conjunction with their contrasts. There are a few of the suspicions
which is utilized to be included within the time variation because it would centre on the normal
of the gather that highlights the contrasts which incorporates the successful on the measure of the
banks. It moreover highlights the relationship beside the productivity which turns out to be the
testing for the theory that has been related with the think about
(Refer to Appendix 2).
This kind of straight demonstrate is primarily utilized for keeping up the by and large
information that has as of now been collected from diverse sources. This specific demonstrate
basically highlights the viable examination of the information of the banks and those need to be
highlighted with the board information besides accepting that no other settled impacts are being
permitted by the individual effects. The impacts of the show is primarily utilized for analysing
the progressive and the information for the board in conjunction with affecting the extraordinary
cases. Arbitrary impact demonstrate is additionally a show of fluctuation components where the
parameters are included as per the arbitrary factors. Hausman test may be a sort of measurable
test which is utilized for evaluating the values of comparing the generally options of the
components that are related inside list of information. This specific test basically assesses the by
and large consistency at the time of comparing with another choices. At the impact of less

42
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
estimator, it highlights the reliable variable that influences the foremost to the in general
components. The information that has been accumulated from the banks incorporates the options
which are required to be compared with other variable for measuring their consistency. This
would along these lines impact efficiency in overseeing an account industry in Nepal and their
results approximately of the diverse people. The characteristic channel is conducted in this
composing consider for recognizing the linkage between aces efficiency and other parcel or
association. There are a number of a modest bunch of blocked off cash related experts that have
contributed insides the Nepal organized made keeping cash parcel. But it isn't clear in case other
overseeing an account companies are giving more benefits than the private had firms.

43
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Chapter 6: Conclusion and Recommendation
6.1 Conclusion
The research is about the impact on the size of efficiency of commercial banks in Nepal
by which the data have been collected from the credential sources. The impact on the size of the
efficiency mainly points out the overall tendency of the commercial banks along with their
profitability that highlights in the financial statement. It has moreover been evaluated that the
positive taken a toll of impact gives the effectiveness of the shareholders who have watched the
in general impacts on the commercial banks of Nepal. The industry is creating at a quick rate
which would draw in more number of specialists towards the companies. Extending the number
of firms would as well increase the number of specialists that would move forward the entirety of
loaning and other works out such as cash related reinforce, keeping cash organizations, crediting
cash at certain charmed rates and others. Both national as well as the widespread companies of
Nepal takes after the driving way of giving the incredible quality of organizations to the clients.
Making the working condition of the master is the foremost extraordinary crucial parcel which
are to be updated interior the given time period. The masters of distinctive segments has gone up
against some of the issues which are to be included with change of the working condition inside
the banks. These can be effectively disabled together with the truths that basically propelled the
in general observational work within the recent years for evaluating it is generally execution at
the side the chance that demonstrates within the industry of managing an account.
In later thinks about it has been found that the effect of bank particular macroeconomics
primarily decides the by and large benefit of the bank. It too incorporates an imperative course
towards the observational examination which focuses out the by and large impact of the in

44
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
general structure of possession and the structure on its benefit. The study anticipates various
components might influence the advantage comes approximately inside the channel region. Bank
degree was acknowledged one from the basic components that affect efficiency for channel
banks. The gauge of the complete sum of cash has been found with a basic effect on banks
efficiency. The In general Resources of commercial banks at conclusion of Saar 2074 Transport
was Rest. 2621230.37 Million. Without a doubt in stock exhibit, Commercial Banks plays
winning portion as both fragile and include up to NAPES List is overwhelmed by the
improvement in fetched of Stock of Cash related Teach.
Developing the number of banks would as well increment the number of operators that
would upgrade the entire of compensation and other works out such as adequacy of commercial
banks, advancing capacity and others. It has been caught on that in making countries, most of the
masters of particular sections are getting their redress capability of the banks which would be
profitable for the monetary teach. The issue with the capability that are given to the banks
interior the keeping money division of Nepal fundamentally highlights as they are getting the
proper portion insides the designated time. The estimate of the bank is basically measured by the
normal calculation which would esteem its resources that are display on the bank and keeping up
its by and large exercises. Bank appraise implies to the volume of include up to assets a bank
have. In various past explore the degree of bank is talked to by log of include up to assets of the
banks. Diverse sorts of proportions are to be performed for improving the in general proficiency
of the banks that are acting as commercial banks in Nepal. Growing bank gauge can increase
bank efficiency by allowing banks to realize economies of scale. For outline, growing appraise
grants banks to spread settled costs over a more noticeable asset base, hence reducing their
ordinary costs.

45
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Both side of the banks that's financing side and action side as well as the action side
focuses out the generally association of the resources within the banks together with affecting its
proficiency. There are a number of a modest bunch of blocked off cash related aces that have
contributed insides the Nepal organized made keeping cash parcel. But it isn't clear in case other
overseeing an account companies are giving more benefits than the private had firms. The Net
Intrigued Edge proportion measures the advantage a company makes on its contributing works
out as a rate of include up to contributing assets. Banks and other budgetary idea commonly
utilize this extent to dissect their wander choices and track the good thing about their advancing
operations. There are diverse theories made with regard to the level of viability level of cash
related knowledge and they gives questionable comes almost. It anticipate that because it were
broad banks with isolated things can affect costs and increase benefits.
6.2 Recommendation
The recommendation can be set for the commercial banks in Nepal is to assess the overall
infrastructure that are associated with the banks. The commercial banks in Nepal is required to
deploy a certain amount of additional capital with its normal capital that helps the company to
run their business. Some of the development that are required to be made by the bank is to
enhance their overall capital structure which would attract more investors and prosper their
business along with encouraging the mega mergers. Empirical research is required to be
performed for development of the internal parts which would be effective for increasing the
materiality of the banks that has been collected for the study. The changes in the policies would
affect the internal institutions which would be beneficial for the banks that are affect by the size
of efficiency of the commercial banks.

46
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
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IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
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Appendices
Appendix 1
Gantt chart
Main
activities and
stages
Week 1 Week 2
to 9
Week 9
to 15
Week 15
to 20
Week
20 23
Week 23
to 25
Week 26
Selection of
the topic

Collection of
data

Planning the
proper layout
 
Reviewing
literature

Development
of research
plan

Selecting
research
technique
  
Gathering
secondary
data
 
Data analysis  
Interpretatio
n of findings

Conclusion
preparation


52
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Project rough
overdraft

Final
submission


53
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Appendix 2
Graphs
0 .005 .01 .015 .02 .025
mean of ProfitEfficiency
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited

54
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0 50,000 100000 150000
mean of BankSize
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited
0 2,000 4,000 6,000 8,000 10,000
mean of Expenses
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited

55
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0 .02 .04 .06
mean of NIM
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited
0 .1 .2 .3 .4
mean of CapitalStructureCAR
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited

56
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0 2,000 4,000 6,000 8,000 10,000
mean of GDPRevenue
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited
0 2,000 4,000 6,000
mean of IS
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited

57
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
0 .2 .4 .6 .8 1
mean of CDR
1. Nepal Bank Limited10. Bank of Kathmandu Limited11. .Nepal Credit and Commerce Bank Limited*12 . NIC Asia Bank Limited13. Machhapuchchhre Bank Limited14. Kumari Bank Limited15. Laxmi Bank Limited16. Siddhartha Bank Limited17. Agricultural Development Bank Limited18. Global IME Bank Limited19. NMB Bank Limited2. Rastriya Banijya Bank Limited20. Citizens Bank International Limited21. Prime Commercial Bank Limited22. Sunrise Bank Limited24. Prabhu Bank Limited25. Janata Bank Limited26. Mega Bank Nepal Limited3. Nabil Bank Limited4. Nepal Investment Bank Limited5. Standard Chartered Bank Limited6. Himalayan Bank Limited7. Nepal SBI Bank Limited8. Nepal Bangladesh Bank Limited9. Everest Bank Limited

58
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Appendix 3
Name of the Source Name of the author Important findings
Abdullah, A.M. and Naser,
K., 2015. Determinants of
capital structure of banking
sector in GCC: an empirical
investigation. Asian
Economic and Financial
Review, 5(7), p.959.
Abdullah, A.M. and Naser, K. The determinants of capital
structure in the banking
sector has been discussed in
this academic source.
Koirala, S. and Sapkota, S.,
2015. Capital Investment
Efficiency and Stock
Performance: Evidence from
Commercial Banks of
Nepal. ASBM Journal of
Management, 8(1).
Koirala, S. and Sapkota, S. The efficiency of capital
investment from the
commercial banks of Nepal.
The performance of stock has
also been discussed in this
academic source.
Said, A., 2018. Effect of the
Asset Quality on the Bank
Profitability: A Study of US
Commercial
Said, A. The effect of the quality of
the assets have been
discussed in this academic
source.
Poudel, S.R., 2018.
Assessment of Credit Risk in
Nepali Commercial
Poudel, S.R. This academic source mainly
highlights the assessment of
the credit risk in the

59
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Banks. Journal of Applied
and Advanced Research, 3(3),
pp.65-72.
commercial banks of Nepal.
Mustafa, S.O.B.A., Işıl,
E.R.E.M. and CEYLAN, F.,
2016. The impact of
corporate governance
practices on bank efficiency:
A case of Turkey. Süleyman
Demirel Üniversitesi Sosyal
Bilimler Enstitüsü Dergisi,
(25), pp.305-322.
Mustafa, S.O.B.A., Işıl,
E.R.E.M. and CEYLAN, F.
The overall impact of the
corporate governance on
banking efficiency have been
discussed in the study.
Aspal, P.K. and Nazneen, A.,
2014. An empirical analysis
of capital adequacy in the
Indian private sector
banks. American Journal of
Research
Communication, 2(11),
pp.28-42.
Aspal, P.K. and Nazneen, A. This mainly discuss the
capital adequacy of the
banking sector and how they
are important for the banks.
Nataraja, N.S., Chilale, N.R.
and Ganesh, L., 2018.
Financial Performance of
Nataraja, N.S., Chilale, N.R.
and Ganesh, L.
This academic source
highlights the financial
performance of commercial

60
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
Private Commercial Banks in
India: Multiple Regression
Analysis. Academy of
Accounting and Financial
Studies Journal, 22(2), pp.1-
12.
banks.
Waleed, A., Shah, M.B. and
Mughal, M.K., 2015.
Comparison of Private and
Public Banks
Performance. IOSR Journal
of Business and
Management, 17(7), pp.32-
38.
Waleed, A., Shah, M.B., and
Mughal, M.K.
It sheds light on the
comparison of private banks
and public banks.
Rajbahak, S., Shrestha, S.,
Sonu, K.C., Rijal, S. and
Shrestha, S., 2014. Impact of
board size, foreign
ownership, firm size, debt to
equity, firm age and firm
growth on bank performance
in Nepal. C Nepalese Journal
of Corporate Governance,
Rajbahak, S., Shrestha, S.,
Sonu, K.C., Rijal, S. and
Shrestha, S.
It includes the impact of the
size of the boards, its size and
growth of banks in Nepal.

61
IMPACT ON SIZE OF EFFICIENCY OF COMMERCIAL BANKS: EVIDENCE FROM
COMMERCIAL BANKS OF NEPAL
p.59.
Banerjee, R. and Majumdar,
S., 2014, September.
Profitability Determinants of
Commercial Banks in UAE-A
Sure Model Approach.
In Third Asian Business
Research Conference (p. 74).
Banerjee, R. and Majumdar,
S.
The profitability determinants
of the commercial banks have
been discussed in this
academic source.
Kadioglu, E., Telceken, N.
and Ocal, N., 2017. Effect of
the asset quality on the bank
profitability. International
Journal of Economics and
Finance, 9(7), p.60.
Kadioglu, E., Telceken, N.
and Ocal, N.
It highlights the effect of
assets quality on the
profitability of the banks.