Credit Risk Management and Financial Performance of Commercial in DRC (Published)
This study had two specific objectives which are: Establish the effect of credit risk management on performance of commercial banks in DRC. And to identify the most healthiness Commercial banks in DRC. In this study we have responded to two questions: Is there a relationship between the credit risk management and the performance of Commercial banks in DRC? What’s the healthiness commercial bank in DRC? After analysis we concluded that the credit risk management has not any impact with the financial performance of commercial banks in DRC and the best commercial bank in DRC was BCDC during the time covered by this study
Citation : Duniamastaki Jean (2022) Credit Risk Management and Financial Performance of Commercial in DRC, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 10, pp.34-54
Keywords: Commercial Banks, Credit, DRC, Financial Performance, Risk
The Role of Over-The-Counter (OTC) Derivatives in Global Financial Crisis and Corporate Failures in Recent Times and Its Regulatory Impacts (Published)
The paper examined the role played by over-the –counter (OTC) derivatives in the recent global financial crisis and corporate failures, and the extent to which these have impacted the regulation of OTC derivatives products and markets. The research methodology employed is the critical analysis of empirical literature. The findings of the paper are therefore mixed as there were divergent views as to OTC derivatives being the sole cause of the global financial crisis and corporate failures among stakeholders. The paper therefore proposed consistency in OTC derivatives reforms among countries, proper supervision by regulatory bodies over OTC participants among others.
Keywords: Financial Markets, Over - The – Counter, Regulation, Risk, derivatives, financial crisis
The Assessment of Financially Distress Projects: Major Signs, Sources and Restructuring (Published)
The significance of project finance cannot be overemphasized as there is a paradigm shift in financing capital intensive projects by both private and public entities using project finance schemes as opposed to traditional corporate finance across the world. Unfortunately, a number of such projects are engulfed into financial distress at some point in their life cycles. In order to address this issue, this paper examined the elements of project financial distress, its major signs, sources, and as well as suggesting ways to eliminate these undesirable consequences. The methodology used is the critical analysis of empirical literature. Findings of this study provide basis for addressing financial distress conditions by restructuring financially distress projects. The findings also indicate that restructuring can be looked at in four broad dimensions notably; financial, asset, operational, and managerial
Keywords: Debts, Equity, Financial Distress, Project Finance, Restructuring, Risk
A SECTORIAL ANALYSIS OF SUKUK MARKET BASED ON DETERMINANTS OF RISK AND RETURN PERFORMANCES (Published)
The present study attempted to identify different types of risks embedded in sukuk structure and to determine the impact of different types of risks on return of sukuk. Further, this study has also attempted to explore the relationship between market risk, credit risk, operational risk, liquidity risk and sukuk returns. Researcher collected data from the year 2005 to 2013. Data were collected on periodic basis for determining the impact of the diverse risks on sukuk returns daily. This study analyzed the data using line charts, descriptive statistics, correlation analysis, and regressions i.e. ordinary least square with F and t statistics. Results of this study revealed that NASDAQ sectorial basis sukuk index found to have four models which explain from 84% to 91 % of variations in returns. As such global sukuk return, sovereign sukuk return, corporate sukuk return and financial sukuk return are explained by 84%, 91%, 86% and 88% respectively. These results might also be affected by interest rate risk, inflation risk, dollar rate risk, maturity risk, credit risk & default risk, legal & Shari’ah compliance risk, liquidity risk, and reinvestment risk. These results provided support for the hypotheses and shown a relationship between total return and different type of risks. Since sukuk markets are becoming famous in globally developed countries which try to adopt Islamic sukuk for prevailing financial crisis, this study has many implications for the managerial and policy making level.
Keywords: Market, Performance, Return, Risk, sukuk structure
CORPORATE GOVERNANCE AND RISK MANAGEMENT IN THE BANKING SECTOR OF GHANA (Published)
The purpose of this research is to examine the degree to which banks in Ghana use risk management practices and corporate governance in dealing with different types of risk. A modified questionnaire, divided into two parts was developed and administered to the selected banks’ board of directors, senior risk management officers and selected staff. The first part of the questionnaire covered five aspects: understanding risk and risk management, risk identification, risk assessment and analysis, risk monitoring, and corporate governance and risk management practices. This part included 32 closed-ended questions based on an interval scale. The second part consisted of two closed-ended questions based on an ordinal scale dealing with two topics: methods of risk identification, and risks facing the sampled banks. The result of the study indicated that, Board of Directors, senior staffs and not all staff are actively involved in risk management and the most important types of risk facing the sampled banks are credit risk, operating risk, solvency risk, interest rate risk, and liquidity risk. The study also found out that the sampled banks are efficient in managing risk
Keywords: Commercial Banks, Corporate Governance, Ghana, Management, Risk