scholarly journals The Efficiency of Credit Portfolio Management in Pakistan’s Banking Sector

2016 ◽  
Vol 4 (2) ◽  
pp. 51-72 ◽  
Author(s):  
Syed M. Waqar Azeem Naqvi ◽  
Tahseen M. Khan ◽  
Sayyid Salman Rizavi
Keyword(s):  
Portfolio Management ◽  
Banking Sector ◽  
Foreign Banks ◽  
Aggregate Level ◽  
Managerial Decision ◽  
Nonperforming Loans ◽  
Public Banks ◽  
Credit Portfolio ◽  
Over Time ◽  
Credit Portfolio Management

This study highlights the differences in performance of commercial banks operating in Pakistan in the context of credit portfolio management. Specifically, we look at their credit allocation policies and outcomes in the shape of nonperforming loans (NPLs). We categorize a sample of 34 banks into four major groups: public, private, Islamic and foreign banks. The study tests several hypotheses related to the overall efficiency of banks’ credit portfolio management over time as well as the drivers of NPLs and priority sectors for lending across these four categories. The findings broadly suggest that public banks tend to suffer most from NPLs, whereas Islamic and foreign banks manage their portfolios more efficiently. NPLs are highest in the priority lending sectors across all types of banks, which underscores the inefficiency of managerial decision-making when managing credit portfolios. Over time, at an aggregate level, all four types of banks have become less efficient, as reflected by the increase in NPLs as a percentage of gross credit and assets.

scholarly journals Evaluating the Processes of Management of Credit Portfolio of JSC CB «PrivatBank»

2020 ◽  
Vol 10 (513) ◽  
pp. 325-332
Author(s):  
N. P. Pohorelenko ◽  
◽  
A. Y. Yurchenko ◽  
Keyword(s):  
Portfolio Management ◽  
Banking Sector ◽  
Analytical Data ◽  
Bank Lending ◽  
Financial Indicators ◽  
The Status ◽  
Credit Portfolio ◽  
Research Period ◽  
Credit Portfolio Management

The article is aimed at studying the status and structure of the credit portfolio of JSC CB «PrivatBank», also evaluating the processes of management of the bank’s credit portfolio through the computation of the coefficient of credit portfolio management efficiency. While analyzing financial indicators, a consideration and a research of the status of bank lending in modern conditions of the national economy of Ukraine were carried out. The reasons for reducing the proportion of the credit portfolio in the GDP structure during the research period are summarized. The fundamental principles of the credit portfolio management of JSC CB «PrivatBank» were analyzed in accordance with the «Regulation on credit policy». As a result of the research, the analysis of the main analytical indicators of credit portfolio management was accomplished, the structure of the credit portfolio and the structure of the bank’s portfolio credit quality during 2016-2019 were determined. On the basis of analytical data, the coefficient of efficiency of management of the bank’s credit portfolio was computed. Actual problems affecting the process of management of the bank’s credit portfolio were considered. The indicators of the efficiency of credit portfolio management of JSC CB «PrivatBank» for 2016-2019 are computed. It is determined that the key challenges for both the researched bank in particular and the banking sector in general remain a high proportion of non-performing loans. Decisive actions on the part of the management of JSC CB «PrivatBank» will help to improve the structure of the credit portfolio and reduce the amount of troubled debts of the bank. Ways to solve problems of improvement and enhancing the quality of credit activity of the bank are prospects for further research.

scholarly journals Credit Portfolio Management in Nepalese Commercial Banks

2018 ◽  
Vol 10 (1) ◽  
pp. 101-109
Author(s):  
Buddhi Kumar Malla
Keyword(s):  
Financial Institutions ◽  
Portfolio Management ◽  
Commercial Banks ◽  
Quantitative Methods ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Credit Portfolio ◽  
Credit Portfolio Management

Credit portfolio management is a key function for banks (and other financial institutions, including insurers and institutional investors) with large, multifaceted portfolios of credit, often including illiquid loans (Nario, Pfister, Poppensieker & Stegemann, 2016). After global financial crisis of 2007-2008, the credit portfolio management function has become most crucial functions of the bank and financial institutions. The Basel III, third installment of Basel accord was developed after crisis to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage that encourages banks to measure credit risk of bank's portfolios. The Basel committee also raises an issue concerning the application of the risk weights used in the capital adequacy framework to determine exposure to risk assets for the purpose of determining large credit exposure (Morris, 2001).The portfolio management of the Nepalese banking sector has been improved remarkably during last 10 years due to the strict regulation of Nepal Rastra Bank. This journal will try to describe the present credit portfolio management practice of Nepalese commercial banks by using qualitative and quantitative methods. In this study, concentration of banks for credit portfolio management has been studied by analyzing security wise loan, product wise loan and sector wise concentration of loan where the researcher has found assorted outcomes. This research also aims to provide some suggestions to overcome with problems associated with credit portfolio.The Journal of Nepalese Business Studies Vol. X No. 1 December 2017, Page: 101-109

scholarly journals Optimization strategies in credit portfolio management

2007 ◽  
Vol 43 (2-3) ◽  
pp. 415-427 ◽  
Author(s):  
Benjamin Ivorra ◽  
Bijan Mohammadi ◽  
Angel Manuel Ramos
Keyword(s):  
Portfolio Management ◽  
Credit Portfolio ◽  
Credit Portfolio Management

The Case for Credit Portfolio Management

2013 ◽  
pp. 3-17
Author(s):  
Michael Hünseler
Keyword(s):  
Portfolio Management ◽  
Credit Portfolio ◽  
Credit Portfolio Management

From insurance risk to credit portfolio management: a new approach to pricing CDOs

2016 ◽  
Vol 16 (10) ◽  
pp. 1495-1510 ◽  
Author(s):  
Alessandro Andreoli ◽  
Luca Vincenzo Ballestra ◽  
Graziella Pacelli
Keyword(s):  
Portfolio Management ◽  
Insurance Risk ◽  
New Approach ◽  
Credit Portfolio ◽  
Credit Portfolio Management

scholarly journals Determining Hurdle Rate and Capital Allocation in Credit Portfolio Management

2015 ◽  
Vol 50 (2) ◽  
pp. 243-273 ◽  
Author(s):  
Peter Miu ◽  
Bogie Ozdemir ◽  
Evren Cubukgil ◽  
Michael Giesinger
Keyword(s):  
Portfolio Management ◽  
Capital Allocation ◽  
Hurdle Rate ◽  
Credit Portfolio ◽  
Credit Portfolio Management

Stepping Up to the Liquidity Challenge: The Changing Role of Credit Portfolio Management

2013 ◽  
Vol 03 (01) ◽  
pp. 71-76
Author(s):  
Som-lok Leung ◽  
Marcia Banks ◽  
Rob Kiernan
Keyword(s):  
Portfolio Management ◽  
Credit Portfolio ◽  
Changing Role ◽  
Credit Portfolio Management

scholarly journals NONPERFORMING LOANS AND FINANCIAL STABILITY – THE CASE OF SERBIA

2019 ◽  
pp. 349
Author(s):  
Velimir Lukić ◽  
Svetlana Popović ◽  
Irena Janković
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Eastern European ◽  
Nonperforming Loans ◽  
World Economic ◽  
Resolution Strategy ◽  
Credit Portfolio ◽  
Bounce Back ◽  
World Economic Crisis

This paper investigates resilience and stability of the Serbian banking sector in the light of deteriorated quality of its credit portfolio since the last world economic crisis. Nonperforming loans became a burning issue across Eastern European region. We used a set of indicators to appraise the magnitude of nonperforming loans’ burden to the banking sector’s soundness. Indicators verify that the Serbian banking sector was robust and solvent throughout crisis. Nonperforming loans were concentrated in nonfinancial corporations’ sector, while households sector performed much better, which influenced remedy measures undertaken. We carried out a comparison with peer countries and reviewed nonperforming loans resolution strategy implemented in Serbia. Our finding is that measures taken helped noticeably in reducing stock of nonperforming loans, with a caveat that reduction might have been too fast and too large so that bounce back effect cannot be excluded. Overall, financial stability has been preserved despite serious threats and without government financial aid. 

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