scholarly journals MAIN RISKS IN THE LITHUANIAN BANKING SECTOR: ANALYSIS AND EVALUATION

Ekonomika ◽  
2013 ◽  
Vol 92 (1) ◽  
pp. 97-119
Author(s):  
Filomena Jasevičienė ◽  
Vaida Valiulienė
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Market ◽  
Financial Services ◽  
Banking Sector ◽  
Insurance Companies ◽  
Credit Risk Management ◽  
Wide Range ◽  
Loan Risk ◽  
Sector Analysis

Abstract. There are a number of different financial market institutions such as banks, credit unions, leasing and insurance companies, as well as capital market players in Lithuania. The bank sector makes the largest part of the financial market (more than 80%). Thus, the bank sector has a considerable influence on the country’s economy. Banks are not specialized in Lithuania, i.e. they are universal banks which seek to provide quite a wide range of financial services. The successful performance of a bank mostly depends on how it succeeds to manage the risks. The problems of risk management are becoming an object of exceptional attention while enhancing the variety of analysed risks as well as developing the investigation instruments both in the whole world and in Lithuania. Loans make the largest part of bank assets. So, the loan risk management is one of the most important guarantees of safe banking. To manage effectively the bank credit risk, it should be adequately evaluated.Key words: banks, credit risk, credit risk management, credit quality, non-performing loansp>

Credit risk management of Ghanaian listed banks

2016 ◽  
Vol 58 (2) ◽  
pp. 162-178 ◽  
Author(s):  
Michelle Ayog-Nying Apanga ◽  
Kingsley Opoku Appiah ◽  
Joseph Arthur
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Banking Sector ◽  
Banking Industry ◽  
Credit Risk Management ◽  
Structured Interviews ◽  
Content Type ◽  
Credit Risks ◽  
Commercial Loans

Purpose – The study aims to assess credit risk management practices within financial institutions in Ghana. Specifically, the study compares credit risk management practices of listed banks in Ghana with Basel II (1999). Design/methodology/approach – The analysis is based on data gathered from varied sources, namely, use of questionnaires, analysis of internal credit policies and procedure manuals and semi-structured interviews and discussions with credit risk managers of the selected banks in May 2007 and October 2014. Findings – Overall, the credit risk management practices within listed banks in Ghana are in line with sound practices. The only dissimilarity, however, is the role of the board of directors in defining acceptable types of loans and maximum maturities for the various types of loans. The listed banks in Ghana are also exposed to credit risks associated with granting both corporate and small business commercial loans and the use of collaterals to mitigate their credit risk exposures. Practical implications – Banks in Ghana should consider developing the skills of all their personnel and appropriately motivating those involved in the credit risk management processes to ensure that they carry out this process efficiently. Originality/value – Research into credit risk management in the banking industry from the Ghanaian perspective remains scant. This study is, therefore, timely, and its findings are invaluable for the efficient management of credit risk in the banking industry. This study provides policy recommendations which will enhance shareholder value and, in this way, contribute to greater stability in the banking sector in developing countries, in particular.

scholarly journals The Relationship between Credit Risk Management and Profitability between Investment and Commercial Banks in Palestine

2015 ◽  
Vol 7 (11) ◽  
pp. 163
Author(s):  
Mohammed Bayyoud ◽  
Nermeen Sayyad
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Regression Model ◽  
Commercial Banks ◽  
Banking Sector ◽  
Structured Interview ◽  
Investment Banks ◽  
Credit Risk Management ◽  
Bank Managers ◽  
The Relationship

<p>Credit risk management is one of the vital aspects of the financial institutions regardless of their nature. For a more comprehensive analysis of Palestine banking sector, investment and commercial banks both were chosen for assessing the relationship between credit risk management and profitability. Explanatory design of study helped in assessing the casual effect relationship between the research variables. The regression model was used for gathering quantitative findings while structured interview from bank managers was selected for gathering qualitative data. The findings of the regression model in the current study confirmed that there is no consequence of credit risk on profitability of commercial and investment banks of Palestine. Additionally, it was also found that there is no difference between the Palestinian commercial and investment banks concerning the relationship.</p>

scholarly journals The challenges of credit risk management in the investment firms in crisis

2020 ◽  
pp. 43-56
Author(s):  
Ranko Sovilj
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Comparative Method ◽  
International Standards ◽  
Credit Risk Management ◽  
National Regulation ◽  
Market Shocks ◽  
The Global Financial Crisis

The global financial crisis has given rise to legislative activity on the international level, with the adoption of numerous legal regulations, in order to improve the ability of financial participants, among others, investment firms to absorb losses arising from economic and financial stress situations. Credit risk is one of the dominant risk in the finance and business of investment firms, and consequently, the exposure to credit risk is present in almost all financial transactions. Therefore, the paper points out that the application of adequate methods of credit risk management can contribute to the liquidity of investment firms, as well as preserving the stability of the financial market, taking into account frequent financial market shocks caused by numerous internal and external factors. In this regard, the aim of this research is to indicate how the application of the adopted international standards contributes to reducing the exposure of the investment firms to credit risk. Finally, the research of the legal regime of credit risk management in investment firms, using the normative and comparative method, provides us with a basis for critical review and analysis of national regulation in this field.

scholarly journals Banking Activities in Kosovo and the Importance of Credit Risk Management

2019 ◽  
Vol 7 (3) ◽  
pp. 35-43
Author(s):  
Arbana Sahiti ◽  
Skender Ahmeti ◽  
Muhamet Aliu
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Credit Risk ◽  
Financial Services ◽  
Financial Stability ◽  
Credit Risk Management ◽  
Economic Activities ◽  
Long Term Stability ◽  
Primary Determinant ◽  
And Performance

Banks between the financial services they provide play significant roles in the country's economy The importance of banks in Kosovo is one of the essential catalysts in economic growth. The banking industry based on efficiency and performance industryis the leading indicator of the country's financial stability The pace of economic growth and long-term stability in the country varies from the level of credit and for what economic activities the bank finances. Credit risk is the primary determinant of banking performance. The higher the risk that the higher the risk is the probability of bank loss and vice versa In this study banking activities will be discussed and events in general, as well as an analysis of the financial system especially at banks, with particular emphasis on the importance of credit risk management. 

scholarly journals The Impact of Credit Risk Management on the Moroccan Commercial Banking Sector

2021 ◽  
Vol 11 (4) ◽  
pp. 5713-5724
Author(s):  
Fatima Bellaali ◽  
Abdelhamid Al Bouhadi
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Banking Sector ◽  
Commercial Banking ◽  
Credit Risk Management ◽  
Loan Portfolios ◽  
Market Requirements ◽  
The Impact ◽  
Different Sources

The study aimed to analyze the credit risk management practices that the commercial banking sector in Morocco is committed to and their impact on the banking sector.Accordingly, the study reached many conclusions about the importance of applying the mechanism of transferring risks into credit opportunities in the market, which can be achieved through diversifying the bank’s revenue schemes in an optimal manner and correct compatibility with market requirements, which allows the bank to use different sources of interest and fees granted from other areas of service that provided by the Bank, rather than focusing primarily on loan portfolios. In addition, the study highlighted the importance of the relevant specialist within the Bank to deal with more macroeconomic research. Designed for market-based economies, other than adopting credit trend analysis alone, therefore, depreciation of bank assets comes from a variety of market drivers, which have a fundamental role in influencing the credit capabilities of the bank.

scholarly journals Credit risk management practices in small and medium-sized micro-finance providers

2015 ◽  
Vol 13 (1) ◽  
pp. 1101-1107 ◽  
Author(s):  
Oscar Chakabva ◽  
Thomas Thurner
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Metropolitan Area ◽  
Emerging Economies ◽  
Low Income ◽  
Financial Services ◽  
Management Practices ◽  
Community Leaders ◽  
Credit Risk Management

Microfinance providers play a significant role in emerging economies by providing banking-related financial services to the low income market. However, lending to the low income market is associated with high credit risk. This paper investigates the use of certain risk management practices by small and medium-sized micro finance providers in the Cape Metropolitan Area. The big difference of micro-finance is that collaterals are absent and instead, a close connection between microfinance providers and their clients come into place. And while micro-finance providers use follow up calls and penalties to avoid losses from loan overdue, the classical way to the court is not really an option. Instead, community leaders function as middlemen between the provider and the customer. Although most respondents agree that policies are in place, written risk policies exist in only half of our respondent’s enterprises. We further showed that the views on risk management depend on whether the respondent is an owner or a manager of the venture.

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