The Impact of Credit Risk Management on Commercial Banks Performance in Democratic Republic of the Congo (Published)
The main objective of this study was to find the impact of credit risk management on the financial profitability of the Congo’s commercial banks. The specific objectives were to find the effects of CAR and NPLR considered as independent variables on the performance of commercial banks while the dependent variables were ROE and ROA. We used commercial banks in the Democratic Republic of the Congo as a study population, and as a sample the four largest banks from 2009 to 2016. Using a fixed effects model specification a panel Estimate Generalized Least Squares regression was done on the data using E views software. Adopting a 5% non- directional test of hypothesis, the study found a capital adequacy ratio has statistically significant effect on commercial banks performance in Democratic Republic of Congo. For the second objective which was to determine the relationship between non-performing loans ratio and performance of banks, the study also concluded that NPLR has statistically significant effect on commercial banks. But we have remarked that there is a negative relationship between NPLR and ROE and ROA; and there is a positive relationship between the car and ROE and ROA. The results of the study reveal that banks with high capital adequacy ratios can better advance more loans and absorb credit losses each time they face it, especially in the context of Congolese banks where the uncertainty of reimbursement is high and thus record a better profitability.
Keywords: CAR, Commercial Banks, Credit Risk Management, NPLR, Profitability, ROA, ROE
Sale of Loans and Credit Risk Management Practices of Savings and Loans Companies: Evidence from an Emerging Economy (Published)
The current study assessed the credit risk management practices of saving and loans companies in the Sunyani Municipality of the Bono region of Ghana. With a positivist paradigm, the study adopted a descriptive research design. Using purposive sampling method, a sample size of fifty seven (57) respondents was utilized. The study revealed a strong and positive correlation between credit risk management and financial performance of the savings and loans companies. Erratic policy rates were found to have negative impact on the operations and profitability of the companies. The study recommends robust supervision and strict adherence to sound credit management practices for sustainability and profitability of the savings and loans companies.
Keywords: Credit Risk Management, Ghana, Sunyani Municipality, savings and loans companies