it means banks selling insurance policies. collaboration between bank and insurance companies.

1. BANCASSURANCE IN THE NEPALESE
BANKING INDUSTRY: A STUDY OF
SELECTED FINANCIAL PERFORMANCE
INDICATORS.
A Graduate research project
Presented BY:
Rupesh Nyaupane
Exam Roll NO: 14220471
P.U. registration NO: 2014-2-22-0170

2. Presentation overview
Introduction
Statement of the Problem
Objectives of the Study
Theoretical Framework
Research Design and Methodology
Research Findings
Respondent profile
Descriptive Analysis
Summary of Hypothesis testing
Regression analysis
Conclusion

3. Introduction
• Bancassurance = “Banca” + “Assurance”.
• it means banks selling insurance products.
• Collaboration between Bank and Insurer to distribute insurer’s
products
• Insurer – provider of products and services – insurance risk
taker
• Bank – distributor.

4. Cont..
• Distribution of insurance product through banks distribution channel.
• Liquidity, Assets quality and capital adequacy helps to measure
financial performance of banks.
• Liquidity: The degree to which an assets or security can be quickly
bought and sold in the market without affecting the assets price.
• Assets quality: loan is the main assets of banks. sounds assets quality
involves careful granting the loan.
• Capital adequacy: Amount of capital to recover in case of failure of
banks.

5. Statement of the problem
• Bancassurance is the new concept in Nepalese banking sectors.
• Many commercial banks started selling insurance policies.
• It is beneficial to banks, insurance companies and customers.
• Bancassurance influence the liquidity, assets quality, and capital
adequacy of banks.
• The influence of bancassurance towards the financial performance of
banking industries has not yet been understood.

6. Objectives of the Study
• To evaluate the influence of bancassurance on capital adequacy of
commercial banks in Nepal.
• To determine the influence of bancassurance on assets quality of
commercial banks in Nepal.
• To examine the influence of bancassurance on liquidity of commercial
banks in Nepal.

7. Theoretical Framework
Independent Variable Dependent Variables
Bancassurance
Liquidity
Assets Quality
Capital Adequacy

8. Research Design and Methodology
• Research Design
• Quantitative research
• Survey method
• Sampling Method
• Convenience Sampling
• Sampling Instrument
• Self-administered questionnaire
• Sample size
• 96 respondents.

9. Research Findings
72.9
27.1
Gender of the Respondents
Male Female

10. Qualification of Respondents
2.1
58.3
39.6
Qualification
Intermediate Bachelor degree Master and above

11. Age group of Respondents
47.92
45.83
6.25
Age group
20-25 25-30 30 and above

12. Descriptive Findings
Variables Mean Standard deviation
Bancassurance 4.3629 1.010
Liquidity 4.345 0.9415
Capital Adequacy 4.3 1.10075
Assets Quality 4.20 0.985

13. Correlation Analysis
Variables conclusion
Liquidity Pearson correlation
Sig (1-tailed)
.580
0.000
Positive and
significant
relationship.
Capital
Adequacy
Pearson correlation
Sig (1-tailed)
.502
0.000
Positive and
significant
relationship.
Assets Quality Pearson correlation
Sig (1-tailed)
.574
0.000
Positive and
significant
relationship.

14. Regression analysis ( Model summary)
Model R R square Standard error
of estimation
liquidity .580 .337 .58128
Assets quality .574 .329 .59457
Capital
adequacy
.502 .252 .75842

15. Regression Analysis
variables Beta coefficients
Bancassurance & Liquidity .689, (P < 0.01)
Bancassurance & capital Adequacy .692, (P < 0.01)
Bancassurance & Assets Quality .700, (P < 0.01)

16. Hypothesis Testing
S.N Hypothesis Testing Decisions
1. There is positive relationship between
bancassurance and Liquidity.
Accepted
2. There is positive relationship between
bancassurance and Capital Adequacy.
Accepted
3. There is positive relationship between
bancassurance and assets Quality.
Accepted

17. Conclusion
• There is a influence of bancassurance towards the liquidity of banking
industry.
• Bancassurance helps to improve the Capital adequacy ratio of banking
industry.
• Bancassurance affects the assets quality of banking industry.
• Bancassurance has strong impact on the financial performance of
banking industry.

18. Recommendation
• Determinants of financial performance.
• Sample size .
• Recommendation to manager:
 Bancassurance helps to improve financial position.

19. THANK YOU