2026· International Journal of Banking Risk and Insurance· Vol 14, pp. 66-80· 0 citations· 26 references
Abstract
The profitability of a country’s banking sector is a critical indicator of its overall economic health. This study examines the impact of financial risk on the performance of the banking sector in India, with a specific focus on identifying the moderating factors that influence this relationship. Using data from 26 Indian banks listed on the stock exchange from 2012 to 2023, the research employs fixed effects regression to investigate the relationship between financial risk and performance. Return on assets (ROA) and return on equity (ROE) were used as the key indicators of financial performance. The independent variables include credit risk (CR), capital adequacy ratio (CAR), liquidity risk (LR), loan-to-deposit ratio (LDR), interest rate risk (IRR), and market risk (MR). The results indicate a significant effect of financial risk on the financial performance of banks, with varying levels of significance at different risk levels. Furthermore, moderated regression analysis was applied to examine the effect of various macroeconomic and bank-specific moderating factors on the association between financial performance and financial risk. The findings provide valuable insights into the risk-performance dynamics within the Indian banking sector.
The study examines market risks as factors that could influence the financial performance of the
DMBs in Nigeria. The study was based on the Value at Risks (VaR) theory and adopted the crosssectional and longitudinal research design. The population of the study consisted of all Deposit
Money Banks (DMBs) in Nigeria. Da...
Sunday Otuya· World Journal of Finance and...· 0 citations
This study investigates the effect of capital adequacy ratio (CAR), Tier 1 leverage ratio (TLR),
and equity-to-assets ratio (EAR), on the financial performance of listed deposit money banks
in Nigeria. Using return on assets (ROA) as the measure of financial performance, panel data
from audited financial reports of the...
E. I. Ogbada· IIARD INTERNATIONAL JOURNAL...· 0 citations
This study investigated the relationship between the upside potentials inherent in credit risk and
the performance of deposit money banks (DMBs) in Nigeria. While credit risk is traditionally
perceived as a threat to banking stability, emerging evidence suggests that it can also present
opportunities for enhanced pr...
O. M. Ogbulu· Journal of Accounting and Fi...· 0 citations
Asset quality is a key indicator of a bank’s financial health and a critical determinant of its profitability and sustainability over the long term. The significance of Non-Performing Assets (NPAs) in the Indian banking sector has increased exponentially owing to the need for effective management of NPAs especially for...
Divakara M R, Sahana M M, Devanand B Y, Arun Kumar· International Journal of Adv...· 0 citations
This article examines the effect of credit risk management on the performance of commercial
banks in Nigeria between 2009 and 2023. Using an ex-post facto research design, secondary
data were obtained from the Central Bank of Nigeria (CBN) statistical bulletins and banks’
annual reports. The model employed return on as...
Ime T. Akpan· IIARD INTERNATIONAL JOURNAL...· 0 citations
The significance of risk management and disclosure in the banking sector has garnered increasing
attention in recent years, as financial institutions strive to enhance transparency and improve
investor confidence. This study investigates the effect of quantitative risk disclosures—specifically
credit risk, market risk,...
Aisha Sulaiman· IIARD INTERNATIONAL JOURNAL...· 0 citations
We use cookies to run the site and, with your consent, for analytics and to show ads.
See our Cookie Policy.
