Aug 2026· International Journal of Creative and Open Research in Engineering and Management· Vol 02, pp. 1-9· 0 citations
Abstract
Credit risk management is an essential function of banking institutions because it helps minimize loan defaults, protect financial assets, and ensure long-term profitability. This study examines the scope and importance of credit risk management in The South Indian Bank Ltd. by analysing credit appraisal practices, loan monitoring, borrower assessment, recovery mechanisms, regulatory compliance, and overall banking performance. The study adopted a descriptive research design using both primary and secondary data collected from 100 respondents through a structured questionnaire. Multiple Linear Regression Analysis was selected as the statistical tool to examine the influence of credit risk management practices on banking performance. The findings indicate that effective credit risk management significantly improves financial stability and operational efficiency.
Credit Risk Management (CRM) is essential for the stability and profitability of commercial banking institutions. This study evaluates the effectiveness of CRM practices implemented in commercial banks in Paro Dzongkhag, Bhutan. The information was collected through structured questionnaires distributed to all the relevant employees of five commercial banks located in Paro Dzongkhag. Results indicate that overall, respondents regard the CRM practices of the banks as effective; high scores were given to practices like collateral enforcement, credit limit setting and monitoring, systematic loan evaluation, and compliance with well-defined credit policies, hence showing strong pre- and post-loan supervising practices. The basic appraisal processes, such as creditworthiness assessment and regular credit scoring, were also rated positively, indicating a well-developed assessment system. On the other hand, lower ratings were observed in the areas of early warning systems aimed at detecting potential defaults, integration between credit officers and risk management units, and staff training on credit risk policies. These findings indicate that, although the institutions have strong policy underpinnings, much more remains to be done to improve proactive risk identification, interdepartmental cooperation, and continuous employee growth. In general, the paper finds that CRM practices among Paro Dzongkhag commercial banks are highly successful; however, the mitigation of the risks by the banks could be enhanced by enriching them with early warning systems, coordination procedures, and training systems, which can serve as practical recommendations to the decision makers of the commercial banks in Bhutan.
T. Phuntsho, Karma Wangchuk, Sudev Mariyil· EAST WEST JOURNAL OF BUSINES...· 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 assets (ROA) as a proxy for bank performance,
while non-performing loans (NPLs), cash reserve ratio (CRR), and interest rate (INTR) were
used as measures of credit risk. Ordinary Least Squares (OLS) regression was applied to
evaluate the relationships. The results reveal that NPLs had a positive but statistically
insignificant effect on ROA, while CRR also showed a positive but insignificant relationship.
Conversely, interest rates exhibited a negative but insignificant impact on profitability. The
joint F-test further confirmed that credit risk variables did not significantly explain variations
in bank performance within the article period. These findings suggest that other structural,
institutional, and macroeconomic factors play a more decisive role in shaping profitability
outcomes than the credit risk indicators considered. The article concludes that while credit risk
management remains a core function of banking operations, its direct influence on profitability
in Nigeria is limited. It recommends strengthening credit recovery mechanisms, improving
operational efficiency, enhancing corporate governance, and diversifying income streams to
improve the resilience and performance of Nigerian commercial banks.
Ime T. Akpan· IIARD INTERNATIONAL JOURNAL...· 0 citations
By taking into account the capital adequacy ratio, bank size, and financial leverage, this study seeks to examine the impact of asset management risk on the financial performance of Indonesian banks. Purposive sampling was used to choose 32 banks that were listed on the Indonesia Stock Exchange between 2020 and 2024. Panel data regression was used to analyse the data. The findings indicate that while financial leverage has a large negative impact on financial performance, interest rate risk, credit risk, and the capital adequacy ratio have a considerable beneficial impact. The financial performance of banks is not significantly impacted by liquidity risk or bank size.
Keywords: Capital Adequacy Ratio; Credit Risk; Financial Performance; Interest Rate Risk; Liquidity Risk
Credit rating agencies play an important role in India's financial system by assessing the creditworthiness of companies, financial institutions, debt instruments, and government securities. Their ratings help investors evaluate risk, support informed investment decisions, reduce information asymmetry, and improve capital-market transparency. This study examines the role, significance, performance, regulatory environment, and challenges of credit rating agencies in India. It also evaluates their influence on investment decisions, corporate borrowing costs, capital-market development, financial stability, and risk management. Primary and secondary data were considered, with questionnaire responses from 100 respondents analyzed using percentage analysis. The study highlights regulatory oversight and technological improvements.
Keywords: Credit Rating, Investment Decisions, Financial Risk, SEBI, Capital Markets
Desaboina Manasa, D. Tharangini· International Journal of Cre...· 0 citations
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. Data were collected from financial statements of the sampled
banks. Findings of the study revealed that exchange rate risk has a significant negative effect on
Return on Assets while interest rate risk was found to be positive but not significant. The study
concludes that market risks affect the financial performance of DMBs in Nigeria, and recommends
that bank managers should follow monetary policies when creating risk management plans, and
policymakers should take into account the banking sector's recent financial performance,
including interest rates and exchange rates, since the banking sector's success is a good indicator
of economic performance.
Sunday Otuya· World Journal of Finance and...· 0 citations
This study examined Risk Management Strategies as Determinants of Sustainability in Deposit
Money Banks within Ibadan, Oyo State, Nigeria. The main aim was to investigate how credit risk
management and liquidity risk management influence the long-term sustainability of banks in the
region. Specifically, the study sought to assess the effect of credit risk management on
sustainability and examine the relationship between liquidity risk management and sustainability.
The research adopted a descriptive survey design, targeting branch managers, risk officers, and
accountants from ten selected deposit money banks. A total of 120 questionnaires were distributed,
and 110 valid responses were analyzed using regression and correlation analyses with the aid of
SPSS version 26. Findings revealed a significant positive effect of credit risk management on bank
sustainability (β = 0.642, t = 6.215, p < 0.001), while liquidity risk management exhibited a
moderate positive relationship with sustainability (r = 0.518, p < 0.01). The combined model
showed that both variables jointly explained 54% (R² = 0.54) of the variance in sustainability,
indicating that sound risk management frameworks enhance institutional resilience and
operational efficiency. The study concluded that effective credit appraisal systems, prudent
liquidity control, and strong governance structures are essential for the sustainability of deposit
money banks. It recommended that banks strengthen their risk management systems, maintain
adequate liquidity buffers, and comply with regulatory standards to ensure long-term stability and
competitiveness.
O. T. Adewale· Journal of Accounting and Fi...· 0 citations
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