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EFFECT OF CREDIT RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF NEPALESE COMMERCIAL BANKS

📘 Volume 11 📄 Issue 12 📅 december 2024

👤 Authors

Arun Singh Thakuri 1
1. Master of Business Administration in Banking and Finance (MBA-BF), Management, Lumbini Banijya Campus, Tribhuvan University, Butwal, Nepal

📄 Abstract

The study aims to investigate the effect of credit risk management on the financial performance of Nepalese commercial banks. For this study, secondary data and descriptive and causal-comparative research methodologies were employed. The E-view-12 student version was used to evaluate the 210 observations of balanced panel data from 15 commercial banks from FY 2010?11 to FY 2022?23. The capital adequacy ratio and credit-to-deposit ratio were shown to have statistically significant and positive coefficients. Both the capital adequacy ratio and the credit-to-deposit ratio have a substantially beneficial effect on the profitability of Nepal's commercial banks, according to the considerable positive coefficients. Therefore, banks should maintain an appropriate capital reserve to absorb a reasonable amount of losses and prioritize improvements in efficiency for expanding their lending and investment activities to enhance the bank?s financial stability and performance.

🏷️ Keywords

Credit to Deposit ratio Capital Adequacy Ratio Non-performing Loan Ratio Bank Size Return on Assets.

🔗 DOI

View DOI - (https://doi.org/10.36713/epra19517)

📚 How to Cite:

Arun Singh Thakuri , EFFECT OF CREDIT RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF NEPALESE COMMERCIAL BANKS , Volume 11 , Issue 12, december 2024, EPRA International Journal of Economics, Business and Management Studies (EBMS) , DOI: https://doi.org/10.36713/epra19517

🔗 PDF URL

https://cdn.epratrustpublishing.com/article/202412-07-019517.pdf

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