Citation:Maduranga, B.I.C. and Aruppala, W.D.N. 2016. Impact of Competitive Ability on Financial Performance of Sri Lankan Banks. In Proceedings of the Undergraduates Research Conference - 2016, 11th January 2017, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
Date:2016
Abstract:
This research analyses the impact of competitive ability on financial
performance of listed banks in Sri Lanka. Capital delivers a buffer against
losses and thus it ensures safety and soundness of the financial institutions. It
is initial requirement for any financial institution to maintain sufficient capital.
Liquidity is a main concept that most of investors are not properly maintained
and result of that financial plans could be fail to come through such critical
time. Liquidity causes more financial issues than rest of factors. The study
relied on secondary data and thus annual reports of the listed banks were used
to acquiring data. Ratios were used to analyze the data and regression analysis
was used to measure relationship of the variables. The main finding in the
study is that capital adequacy and liquidity has contributes positively &
negatively on financial performance of listed banks in Sri Lanka. The findings
of this study is useful for make productive decisions on investing in Sri Lankan
banks.