Determinants Affecting the Effectiveness of Risk Management of Commercial Banks in Dong Nai Province (Published)
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals. The objectives of this study are to identify the factors that affecting the effectiveness of risk management of commercial banks in Dong Nai province. The data analysis for this study is a quantitative type. Moreover, the results provided an insight of the effectiveness of risk management from 350 customers related to commercial banks in Dong Nai province. The regression analysis result showed that there were five factors that included of factors following the procedure (Pr), the communication (Co), the technology (Te), the Human Resource development (Hr) and the organization structure (Or) affecting the effectiveness of risk management of commercial banks in Dong Nai province with significance level of five percent. In addition, the study results showed that there were 350 customers who interviewed and answered about 29 questions. The Data collected from November 2016 to April 2017. This study had been analyzed Cronbach’s Alpha, KMO testing and the result of KMO testing used for the research method of the regression. Customers’ responses measured through an adapted questionnaire on a 5-point Likert scale following; conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree. Hard copy and online questionnaire distributed among 50.500 customers of the commercial banks.
Effect of Corporate Governance on the Financial Performance of Banking Industry in Rwanda: (A Case Study-Commercial Banks in Rwanda) (Published)
This study investigated the effect of corporate governance on Financial Performance of commercial banks in Rwanda. The study has four objectives which determined how board size, CEO duality, institutional ownership, board composition affect financial performance of commercial banks in Rwanda. The study adopted a descriptive research design which assisted to examine the effect of corporate governance on financial performance of commercial banks. The population of the study was 120 composed by the senior managers of the commercials banks operating in Rwanda; and the sample size was 92 but only 76 responded to the questions asked which represent 84%.The key findings for this research were showing that board independence, board composition, institution ownership do not have an effect on financial performance since the majority of respondent have disagreed the effect of corporate governance variables on the financial performance of commercial banks. The analysis of variance has shown that corporate governance variables are not significant predictors to explain the increase of profitability represented by return on asset and return on equity since the p value was 0.447 and 0.186 respectively. This research has concluded that there is no effect between corporate governance using board size, board composition CEO duality as well as institutional ownership are not predictors of financial performance and recommended the regulatory body of commercial banks in Rwanda to provide a guidance on the use of corporate governance practices which may impact positively the financial performance of commercial banks